Navient Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Navient Corp. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

NAVIENT CORP (JSM) filed a Annual Report (10-K) with the SEC on February 26, 2024. Navient Corp. filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Delaware and its fiscal year ends on December 31. Navient Corp. operates in the Security Brokers, Dealers & Flotation Companies industry. The filing includes references to various financial instruments and accounting standards, such as interest rate swaps and fair value measurements.

Why It Matters

For investors and stakeholders tracking NAVIENT CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Navient's financial performance, operations, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The detailed financial data and disclosures within the 10-K are essential for understanding Navient's position in the student loan servicing and education finance market, including its exposure to various financial instruments and regulatory environments.

Risk Assessment

Risk Level: medium — NAVIENT CORP shows moderate risk based on this filing. The company's business is heavily reliant on government policies and regulations related to student loans, which can change and impact its operations and profitability. Evidence includes repeated references to federal programs and loan types.

Analyst Insight

Investors should carefully review the risk factors section of the 10-K to understand potential challenges in the student loan servicing industry and Navient's specific exposures.

Key Numbers

• 20231231 — Fiscal Year End (FISCAL YEAR END)
• 2024-02-26 — Filing Date (FILED AS OF DATE)
• 130 — Document Count (PUBLIC DOCUMENT COUNT)
• 6211 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• NAVIENT CORP (company) — FILER
• JSM (company) — tk
• 2024-02-26T00:00:00.000Z (date) — dt
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240226 (date) — FILED AS OF DATE
• 0000950170-24-020149 (document) — ACCESSION NUMBER
• 0001593538 (company) — CENTRAL INDEX KEY
• DE (state) — STATE OF INCORPORATION

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company's operations are subject to extensive government regulation and policy changes related to student loans, which could adversely affect its business.
• Interest Rate Risk [medium — financial]: Changes in interest rates can impact the company's net interest margin and the fair value of its financial instruments.
• Servicing and Operational Risks [medium — operational]: The company faces risks related to the efficient and compliant servicing of student loans, including potential operational failures or data breaches.
• Credit Risk [medium — market]: The company is exposed to credit risk from borrowers and counterparties, which could lead to financial losses.

Key Financial Figures

• $18.58 — billion (based on closing sale price of $18.58 per share as reported for the NASDAQ Gl
• $38 billion — Education Loans We own a portfolio of $38 billion of federally guaranteed Federal Family
• $17 billion — ent loans and refinancing products. Our $17 billion Private Education Loan portfolio demons
• $1 billion — s. In 2023, we originated approximately $1 billion of Private Education Loans. Business
• $290 million — ing common stock. At December 31, 2023, $290 million remained in share repurchase authorizat
• $9 billion — tes. At December 31, 2023, Navient held $9 billion of Private Education Refinance Loans, w
• $647 million — inance Loans, with 2023 originations of $647 million compared to $1.7 billion in 2022. The d
• $1.7 billion — riginations of $647 million compared to $1.7 billion in 2022. The decrease in originations i
• $324 million — education. In-school originations were $324 million in 2023 compared to $322 million in 202
• $322 million — s were $324 million in 2023 compared to $322 million in 2022. (Dollars in millions) 2021

Filing Documents

• navi-20231231.htm (10-K) — 10667KB
• navi-ex21_1.htm (EX-21.1) — 11KB
• navi-ex23_1.htm (EX-23.1) — 18KB
• navi-ex31_1.htm (EX-31.1) — 13KB
• navi-ex31_2.htm (EX-31.2) — 13KB
• navi-ex32_1.htm (EX-32.1) — 7KB
• navi-ex32_2.htm (EX-32.2) — 8KB
• navi-ex97.htm (EX-97) — 38KB
• img126593029_0.jpg (GRAPHIC) — 121KB
• img126593029_1.jpg (GRAPHIC) — 360KB
• img126593029_2.jpg (GRAPHIC) — 216KB
• img126593029_3.jpg (GRAPHIC) — 354KB
• img126593029_4.jpg (GRAPHIC) — 866KB
• img126593029_5.jpg (GRAPHIC) — 690KB
• 0000950170-24-020149.txt (&nbsp;) — 41941KB
• navi-20231231.xsd (EX-101.SCH) — 2515KB
• navi-20231231_htm.xml (XML) — 9764KB

Business

Business 5 Overview and Fundamentals of Our Business 5 How We Organize Our Business 7 Human Capital 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Selected Historical Financial Information and Ratios 11 The Year in Review 12 Results of Operations 13 Segment Results 16 Financial Condition 23 Liquidity and Capital Resources 29 Critical Accounting Policies and Estimates 32 Non-GAAP Financial Measures 37 Risk Management 46 Supervision and Regulation 49

Legal Proceedings

Legal Proceedings 51

Risk Factors

Risk Factors 52 Cybersecurity 66

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 68

Properties

Properties 73 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 73 Other Information 75

Controls and Procedures

Controls and Procedures 76 Directors, Executive Officers and Corporate Governance 77

Executive Compensation

Executive Compensation 77

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 77 Certain Relationships and Related Transactions, and Director Independence 77 Principal Accountant Fees and Services 77 Exhibits and Financial Statement Schedules 78

Financial Statements

Financial Statements F-1 Appendix A – Description of Federal Family Education Loan Program A-1 Appendix B – Form 10-K Cross-Reference Index B-1 Glossary G-1 FORWARD-LOOKING AN D CAUTIONARY STATEMENTS This Form 10-K contains "forward-looking" statements and other information that is based on management's current expectations as of the date of this report. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "may," "could," "should," "goals," or "target." Such statements are based on management's expectations as of the date of this filing and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties are discussed more fully under the section titled "Risk Factors" and include, but are not limited to the following : general economic conditions, including the potential impact of inflation and interest rates on Navient and its clients and customers and on the creditworthiness of third parties; increased defaults on education loans held by us; unanticipated repayment trends on education loans including prepayments or deferrals resulting from new interpretations of current laws, rules or regulations or future laws, executive orders or other policy initiatives that operate to encourage or require consolidation, abolish existing or create additional income-based repayment or debt forgiveness programs or establish other policies and programs or extensions of previously announced deadlines which may increase the prepayment rates on education loans and accelerate repayment of the bonds in our securitization trusts; a reduction in our credit ratings; changes to

Business

Business Overview and Fundamenta ls of Our Business Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients in education, health care and government. Learn more at navient.com. With a focus on data-driven insights, service, compliance and innovative support, Navient's business consists of: Federal Education Loans We own a portfolio of $38 billion of federally guaranteed Federal Family Education Loan Program (FFELP) Loans. As a servicer on our own portfolio and for third parties, we deploy data-driven approaches to support the success of our customers. Our flexible and scalable infrastructure manages large volumes of complex transactions, simplifying the customer experience and continually improving efficiency. Consumer Lending We help students and families succeed through the college journey with innovative planning tools, student loans and refinancing products. Our $17 billion Private Education Loan portfolio demonstrates high customer success rates. In 2023, we originated approximately $1 billion of Private Education Loans. Business Processing We leverage our loan servicing expertise to provide business processing solutions for approximately 500 public sector and healthcare organizations, and their tens of millions of clients, patients, and constituents. Our suite of omnichannel customer experience, digital processing and revenue cycle solutions enables our clients to deliver better results for the people they serve. Superior Operational Performance with a Strong Customer Service and Compliance Commitment We help our customers — both individuals and institutions — navigate the path to financial success through proactive, data-driven, simplified service and innovative solutions. Delivering superior performance . Whether supporting student

View Full Filing

View this 10-K filing on SEC EDGAR