Boston, MA 04/22/2014 (wallstreetpr) – SLM Corp (NASDAQ:SLM) issued its fiscal 2014 first quarter earnings results that showed encouraging progress in the company. Reporting financial performance for the first three months of 2014, SLM announced core earnings of $227 million or 61 cents per share. That compared with $283 million or 61 per share in the same period a year ago. The flat growth in core earnings per share of 61 cents came about due to a reduction in the number of shares outstanding in the first quarter through shares buyback.
Earnings in the latest quarter were also impacted by reorganizational and restructuring expenses that consumed 4 cents per share. The company’s earnings in the quarter were also affected by forbearance fees that consumed 2 cents per share.
SLM Corp (NASDAQ:SLM) reported GAAP earnings of $284 million or 64 cents. That compared with earnings of $346 million or 74 cents in the comparable quarter a year ago. The company announced that the difference between GAAP results and core earnings in the first quarter 2014 came about due to the company’s derivative position.
The company announced that it returned $264 million to shareholders in the form of dividends and shares repurchases during the first quarter. The company expects to return more value to shareholders as it maintains solid earnings.
Improving business
SLM Corp (NASDAQ:SLM) announced that it originated $1.5 billion in new student loans in the first quarter, therefore, maintaining its leadership position in the provision of education finance. New student loans origination increased 8 percent in the first quarter.
Planned separation
SLM Corp (NASDAQ:SLM) announced the date for separation into two business entities as April 30. The company intends to create two companies from its present status to ensure more focused approach to business and effective management. After the separation, Navient will provide loan management and asset recovery. The other unit will be named SLM Corporation and will provide consumer banking services.
The company announced that it incurred $26 million a one-time separation expense in the first quarter.
