Sallie Mae SLM reported second-quarter 2020 loss per share of 22 cents (on core basis) as against earnings of 31 cents reported in the prior-year quarter. The Zacks Consensus Estimate was pegged at an earnings of 6 cents.Higher provisions due to the coronavirus pandemic’s crippling impact on the economy resulted in the dismal performance. Also, declines in deposits and loan balance were headwinds. Further, results were affected by lower net interest income and elevated expenses. However, the negatives were partially offset by higher non-interest income.The company’s GAAP net loss attributable to common stock was $87.7 million as against net income of $145.9 million a year ago.Lower Net Interest Income, Higher ExpensesNet interest income for the second quarter was $348.8 million, down 12.1% year over year. The decline is attributable to lower interest income. Net interest margin contracted to 4.55% in the quarter from 5.88% reported in the year-ago quarter.The company incurred non-interest income of $28.8 million compared with $19.4 million in the prior-year quarter. The upside mainly stemmed from higher other income.The company’s non-interest expenses climbed 2% year over year to $141.6 million. The rise mainly resulted from higher compensation and benefits expenses.Credit Quality WorsensProvision for loan losses was $351.9 million, substantially up from $93.4 million witnessed in the prior-year quarter.Delinquencies as a percentage of private education loans in repayment were 2.2%, down 5 bps from the year-ago quarter.Loans & Deposits DeclineAs of Jun 30, 2020, deposits of Sallie Mae were $23.6 billion, down from $24.4 billion as of Mar 31, 2020. Lower brokered deposits contributed to the downside.Loans held for investment stood at $21.2 billion as of Jun 30, 2020, down 2.4% sequentially. Private education loan portfolio (93% of total loans) was $19.8 billion, down 1.9% on a sequential basis. During the quarter, the company witnessed private education loan originations of $497 million.Capital Position StrongAs of Jun 30, 2020, Sallie Mae’s common equity Tier 1 capital was 12.4%, exceeding the “well-capitalized” industry benchmark in regulatory requirements.Our ViewpointSallie Mae remains focused on increasing private education loan assets, maintaining a solid capital position by introducing multiple complementary products and improving efficiency. Additionally, its aim to solidify presence in the consumer banking business space bodes well. However, the worsening of credit quality keeps us apprehensive. Also, the contraction of margin due to lower rates keeps the top line under pressure.SLM Corporation Price, Consensus and EPS Surprise SLM Corporation price-consensus-eps-surprise-chart | SLM Corporation QuoteCurrently, Sallie Mae carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesNavient Corporation NAVI reported second-quarter 2020 core earnings per share of 92 cents that surpassed the Zacks Consensus Estimate of 48 cents. Also, the bottom line was above the year-ago quarter figure of 74 cents.CIT Group Inc. CIT recorded an adjusted loss per share of 62 cents in second-quarter 2020. The Zacks Consensus Estimate was pegged at a loss of 63 cents. The reported figure excluded noteworthy items such as merger and integration-related costs in connection with the acquisition of Mutual of Omaha Bank, and other restructuring charges.Capital One COF reported second-quarter 2020 adjusted loss of $1.61 per share wider than the Zacks Consensus Estimate of a loss of $1.25. The year-ago quarterly earnings were $3.37 per share.The Hottest Tech Mega-Trend of AllLast year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SLM Corporation (SLM): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report CIT Group Inc. (CIT): Free Stock Analysis Report Navient Corporation (NAVI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research