Sallie Mae pays dividend in Q2, buys back shares for $156 million

By Lisa Kerner

Charlotte, N.C., July 21 - SLM Corp. (Sallie Mae) paid a common stock dividend of $0.10 per share and repurchased 9.6 million common shares for $156 million as part of its previously announced $300 million share repurchase program in the second quarter, Jonathan Clark, Sallie Mae's chief financial officer, said Thursday during the company's second-quarter earnings conference call.

During the same quarter, Sallie Mae raised $1.4 billion through two private loan securitizations and issued $821 million of Federal Family Education Loan Program asset-backed securities.

The company also repurchased $60 million of debt and realized $300,000 of gains in the second quarter, compared with $1.4 billion and $91 million in the year-ago quarter.

For the second quarter, Sallie Mae reported a GAAP net loss of $6 million, compared with net income of $338 million in the same period of 2010. The difference is due to a $414 million mark-to-market pre-tax loss on derivative contracts, said Clark.

Core earnings were $260 million for the second quarter, versus core earnings of $211 million in the comparable year-ago period.

Based in Reston, Va., Sallie Mae provides saving- and paying-for-college programs.

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