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Sallie Mae net income falls YOY in Q2

Sallie Maereported second-quarter net income attributable to common stock of $52.0 million,or 12 cents per share attributable to the company, compared with $86.1 million,or 20 cents per share, in the year-ago quarter.

The year-over-year decrease was due to a $77 million decreasein gains on loan sales, a $26 million increase in provisions for credit losses,and a $4 million increase in total expenses. Those changes were offset by a $45million rise in net interest income and a $25 million decrease in income tax expense.

Core earnings attributable to common stock were $51.1 million,or 12 cents per share, compared with $85.8 million, or 20 cents per share, a yearago.

The S&P Capital IQ consensus normalized EPS estimate was11 cents.

The private education loan portfolio totaled $12.18 billion asof June 30, up from $9.25 billion as of June 30, 2015. Delinquencies as a percentageof private education loans in repayment were 2.1%, up from 1.7% a year ago. Thecompany originated private education loans of $423 million in the quarter.

Deposits at Sallie Mae Bank totaled $11.9 billion as of June30, compared with $10.3 billion as of June 30, 2015.

For the full year 2016, Sallie Mae expects to report core EPSof between 51 cents and 52 cents, compared with its previous guidance of between 49 cents and 51 cents. The companystill anticipates private education loan originations of $4.6 billion.

The S&P Capital IQ consensus normalized EPS estimate for2016 is 51 cents.