The lender posted a quarterly profit of $54.9 million, or 29 cents per share, missing Wall Street expectations of 44 cents per share. This performance marks a notable retreat from the $67.3 million, or 32 cents per share, recorded during the same period last year. Net interest income dropped to $332.8 million from $376.8 million, while the company's net interest margin narrowed to 4.75% from 5.31%.

Management characterized the results as consistent with internal projections, pointing to a 4.5% uptick in private education loan originations as evidence of ongoing market demand. Looking ahead, the company reaffirmed its target for full-year earnings per share to fall between $3.10 and $3.20.