Navient Corp. Files Q3 2024 10-Q

TL;DR

Navient dropped its Q3 10-Q. Financials look standard.

AI Summary

Navient Corp. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details are provided within the report, which is a standard quarterly disclosure for publicly traded companies.

Why It Matters

This filing provides investors and analysts with a detailed look into Navient's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new risks beyond those already associated with the company's business operations.

Key Players & Entities

• Navient Corp. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241030 (date) — Filing date

FAQ

Key Financial Figures

• $31.5 billion — oans We own and manage a portfolio of $31.5 billion of federally guaranteed Federal Family
• $16.0 billion — ding We own and manage a portfolio of $16.0 billion of Private Education Loans. Through our
• $500 million — er of 2024, we originated approximately $500 million of Private Education Loans. Business
• $1 billion — ogram authorizing the purchase of up to $1 billion of the Company's outstanding common sto
• $176 million — ng common stock. At September 30, 2024, $176 million remained in share repurchase authorizat
• $369 million — Processing segment, to CorroHealth for $369 million resulting in a $219 million gain on sal
• $219 million — oHealth for $369 million resulting in a $219 million gain on sale. Navient continues to expl
• $35 million — , flexible and streamlined company. The $35 million of restructuring and other reorganizati
• $2 million — Third-quarter 2024 GAAP net loss was $2 million ($0.02 diluted loss per share), compare
• $0.02 — rter 2024 GAAP net loss was $2 million ($0.02 diluted loss per share), compared with
• $79 million — diluted loss per share), compared with $79 million net income ($0.65 diluted earnings per
• $0.65 — , compared with $79 million net income ($0.65 diluted earnings per share) in the year
• $138 million — acquired intangible asset impairment of $138 million related to the Government Services busi
• $160 million — arter 2024 Core Earnings net income was $160 million ($1.45 diluted Core Earnings per share)
• $1.45 — e Earnings net income was $160 million ($1.45 diluted Core Earnings per share), compa

Filing Documents

• navi-20240930.htm (10-Q) — 10874KB
• navi-ex10_1.htm (EX-10.1) — 79KB
• navi-ex31_1.htm (EX-31.1) — 13KB
• navi-ex31_2.htm (EX-31.2) — 13KB
• navi-ex32_1.htm (EX-32.1) — 8KB
• navi-ex32_2.htm (EX-32.2) — 8KB
• img127493485_0.jpg (GRAPHIC) — 121KB
• img127493485_1.jpg (GRAPHIC) — 360KB
• img127493485_2.jpg (GRAPHIC) — 216KB
• 0000950170-24-119084.txt ( ) — 37609KB
• navi-20240930.xsd (EX-101.SCH) — 1921KB
• navi-20240930_htm.xml (XML) — 10351KB

Business

Business 3 Overview and Fundamentals of Our Business 3 Recent Business Developments 5 How We Organize Our Business 5

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Selected Historical Financial Information and Ratios 7 The Quarter in Review 8 Results of Operations 10 Segment Results 14 Financial Condition 21 Liquidity and Capital Resources 26 Critical Accounting Policies and Estimates 29 Non-GAAP Financial Measures 30

Legal Proceedings

Legal Proceedings 40

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Unregistered Sales of Equity Securities and Use of Proceeds 44

Controls and Procedures

Controls and Procedures 46 Exhibits 47

Financial Statements

Financial Statements 48

Signatures

Signatures 90 Appendix A – Form 10-Q Cross-Reference Index 91 FORWARD-LOOKING AND CAUTIONARY STATEMENTS This Form 10-Q 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 or the timing of the execution and implementation 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 or decrease the prepayment rates on education loans and accelerate or slow down the repayment of the bonds in our securitization trusts; a reduction in our credit ratings; changes to applicable laws, rules, r

Business

Business O verview and Fundamentals 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 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 and manage a portfolio of $31.5 billion of federally guaranteed Federal Family Education Loan Program (FFELP) Loans. We support the success of our customers and ensure a compliant, efficient customer experience. Consumer Lending We own and manage a portfolio of $16.0 billion of Private Education Loans. Through our Earnest brand we also refinance and originate Private Education Loans. We help students and families succeed through the college journey with innovative planning tools, student loans and refinancing products through our Earnest brand. In the third quarter of 2024, we originated approximately $500 million of Private Education Loans. Business Processing We leverage our loan servicing expertise to provide business processing solutions for approximately 450 public sector organizations, and their millions of clients 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. Our healthcare services business was sold on September 19, 2024. See "Recent Business Developments" for more detail. Superior Performance with Deep Experience in 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 lo

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

Management's Discussion and Analysis of Financial Condition and Results of Operations S elected Historical Financial Information and Ratios Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2024 2023 2024 2023 GAAP Basis Net income (loss) $ (2 ) $ 79 $ 107 $ 256 Diluted earnings (loss) per common share $ (.02 ) $ .65 $ .95 $ 2.04 Weighted average shares used to compute diluted earnings per share 108 121 112 125 Return on assets (.02 )% .51 % .26 % .53 % Core Earnings Basis (1) Net income (1) $ 160 $ 57 $ 246 $ 278 Diluted earnings per common share (1) $ 1.45 $ .47 $ 2.20 $ 2.22 Weighted average shares used to compute diluted earnings per share 110 121 112 125 Net interest margin, Federal Education Loans segment .46 % 1.52 % .46 % 1.20 % Net interest margin, Consumer Lending segment 2.84 % 3.17 % 2.91 % 3.09 % Return on assets 1.21 % .37 % .59 % .58 % Education Loan Portfolios Ending FFELP Loans, net $ 31,522 $ 39,581 $ 31,522 $ 39,581 Ending Private Education Loans, net 16,005 17,333 16,005 17,333 Ending total education loans, net $ 47,527 $ 56,914 $ 47,527 $ 56,914 Average FFELP Loans $ 32,373 $ 40,554 $ 34,749 $ 41,886 Average Private Education Loans 16,587 18,165 16,968 18,710 Average total education loans $ 48,960 $ 58,719 $ 51,717 $ 60,596 (1) Item is a non-GAAP financial measure. For a description and reconciliation, see "Non-GAAP Financial Measures — Core Earnings." 7 T he Quarter i n Review We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present financial results on a basis that differs from GAAP. We refer to this different basis o

View Full Filing

View this 10-Q filing on SEC EDGAR