NAVI - Earnings call transcript Q3 2024

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Operator

Good day, and thank you for standing by. Welcome to the Navient Third Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jen Earyes, Vice President, Investor Relations. Please go ahead.

Jen Earyes

Hello. to call welcome quarter the and XXXX. of morning, Navient's for earnings third Good are Navient's David Fisher, today me With Yowan, Navient's CEO; CFO. Joe and call After questions. prepared remarks, will up their we the open for discussion, which A presentation accompanies you find on can navient.com/investors. today's

our current in discussed forward-looking here. to future other the could materially those presentation. may of the from those expectations our of XX-K as Before about contain refer is be that Actual and to SEC. will the this mind of begin, predictions, discussion due results should we based factors Form variety with the This a information other company's business keep different be of expectations, statements filings on and on factors. Listeners in management's the date discussion

non-GAAP earnings. call, including various other conference we measures, adjusted equity are to that core measures refer will derived ratio financial tangible this from non-GAAP and earnings, core During financial

non-GAAP GAAP reconciliation our Our quarter and earnings I David. posted Navient's release, in be XXXX description the core on GAAP third earnings the turn you. over which call of results, results now And website. Thank found to is can of financial our measures will to

David L. Yowan

morning, and Navient. Good you Jen. the interest Thank call Thanks, joining for for everyone. in your

third productive The quarter along highly journey. was our transformation

healthy items. reflect expense discipline, and significant other lower growth, results loan Our strong prepayments origination several levels of include FFELP

was now of operating BPS. to Services. customers. of our from We enables the the expenses at to by be health shared reflects infrastructure service developments in which multiples during of contracts. on of rely more Services quarter impacted that These justified active sale health Government health care different determined BPS which in are Government businesses This a than Government value we care. the enterprise. We the of think full the heavily by about outstanding reduce businesses, is service Services These business expenses strategy Divestment outcome across than to substantially us growth, growth, most beneficial lower future remain the margins, on not go-forward fourth with for litigation. decade-long separate quarter closed to our divestment the outsourcing We the multiples that borrowers. sale borrower revenues This are will settle These are for overhang valued we options, of overall within the processing the behind result, be allocations, fully not and servicing ensure solutions. being our by to to sufficient set consistent way would transition not nearly a that's and seamless are scale the they us more party. Outsourcing IT businesses over especially than in with and business were doubling compared issues a strategic including liability to loan the increase contingent service divestment costs the at working in share completed activities. We quarter. We recently but of our As Navient significant third CFPB out base targeted were these a the and margins key care price and variabilized lower Services and in valuation $XXX We operations puts cost-efficient. our million. reached third agreement time, investigation will much expense a on explore shared to conversion have an servicing of part health care. far a to repurchases shared discussions business. We Government

footprint. our goodwill as with of We of associated to further Government took a a reduce developments. the corporate We recorded additional write-down steps result these have Services

include results reflecting the Our actions. for restructuring rightsizing expenses quarter

were products. across $X.XX year. loan to in than originations Year-to-date refi and higher core strong Turning XX% growth growth our Earnings business. loan billion, share last quarter showed in-school per the

yield current a rate Fed to in environment position into volumes and origination good reductions meet for year. The planned the the lower XXXX. imply are curve in rate our We September

We have we've Government in customers tremendous opportunities loan when steps to advantage expenses. demand expanded health complete refinance the into visibility to Services our care, of outsourcing student on made and provides remaining capacity product both. The capitalize payments and take progress or for the to lower the readiness eliminate their rate, divest

way. that We believe will quarters services to and elimination significant expense the reductions with Government cash generation after continue robust incremental occur actions Services, The of of anticipated shared along several divestment are from these occurring the reductions expenses we achievable. the likely

planned are fourth in doubling will in our third we the in quarter. result the share the $XX We repurchases a adding purchased million quarter, of to which amount

maturity are confident debt loan month's cash present. to these lower Additionally, our fund capacity with on quarter unsecured a origination hand. we that After retired might volume in in the rate fourth we this environment uses, incremental

proud who plan I'm capital in include productive. the business they've positions company and quarter investments and I work together value growth, the reduction to to loan journey. themselves feel and a to debt that XXXX allocation Our way the come made distributions us transformation deliver so acknowledge to shareholders. take our third a done colleagues of will the of among they've moment the committed best work to across tremendously we want

the items. share Next, strong turn it Joe. key With to I that, to your some metrics, results which the forward include Joe against in additional later will our reflects call. for over let questions performance quarter, certain look special me

Joe Fisher

your Dave, and you, in for on today's everyone call interest Navient. Thank

from $X.XX to the is impairment lawsuit, CFPB a from of asset Government of third and items our the GAAP $X related difference from $X.XX of to third increased prepayments I we in earnings Education the guidance margin company by of actions services $X.X of restructuring our Slide related quarter the business, During and sale fourth my quarter our for and basis of $X.XX. rates EPS remarks, of results that The remainder will the core XX X. The $X.XX loss education outlook on XXXX primarily of third are $X.XX our the earned quarter of the the prepared and detail $X.XX we segment defaulted underlying with net to $X.XX second to primary driven basis items, expenses expect related billion. a the regulatory for undertaking further intangible outlook reported base recovery the results rightsize On and by amortization business. Four we quarter provision the EPS Federal we between to significant resolution basis exclusion and quarter be and on core EPS core gain in on updated year. In our quarter the billion for other $X.XX GAAP I Services goodwill $X.XX. declined just under and and lower private include loans. Adjusting reshape the expected quarter, basis, points on healthcare provide beginning expenses of interest segment, to points of $X.XX. the as provide XX strategic will delivered these expense to the review Loan a between impacted

to We XX-day continue perform credit year levels experienced in our a paused X the sharp as basis decline points at improved and and lower lower injunctions quarter. federal prepayments year, the the of to as see direct few to XX.X%. Slide perspective. Compared the loan benefits portfolio occurred the illustrates over consolidation of quarters to and forgiveness resulted forbearance earlier the expected the program activity. improved recent than prepayments X.X%, rates remained that last rates certain continues borrowers rise to than rate greater delinquency XX this charge-off prior from to FFELP consolidated flat as in The

advantage and repaying We take loans experienced who historically of are to programs only customers. offered encourage difficulty continue to to their direct borrowers experiencing understand are have that or loan

of activity, whether or prepayment levels are we level this more predict prepayment we change in seeing lower reflects is a cannot temporary While permanent trends.

we consistent experienced that during the the third fourth EPS what Our prepayments have reflects with guidance in quarter are quarter.

The on forbearance declared additional activity to million in occurred loan Slide disaster. to loss basis million, have borrowers a compared in is segment from $XX segment $XXX Net federally late Consumer and turn by the to $XXX increased Slide on our generating XXX prior let's focused from grew quarter. ago X.X% natural this quarter disaster the year interest as respectively. and X. in XXX the granted are third points education borrowers. Late-stage that Originations to Now in relief expectations which a the increase of line was a we to our the XXX high-quality prior in is events. At this is primarily of allowance delinquency and impacted XX% highlighted was to the Lending October over in our of margin X. granted since and loan entire portfolio quarter X.X% year end million $XXX for ago with million in rates Much remain recent relief we forbearance a from of the result growth for and on compared quarter, quarter our

a for result quarter, FFELP $X activity the we released the of prepayment as the in During million loans quarter.

contributed and remarks. to is related mentioned in million private earlier to adjustment my New I recovery the origination volume education $XX allowance $XX loan the million

The X million the EBITDA healthcare the excluding federal contract. There business. Let's million uncertainty from Government $XX $XX funding to that related primarily and by or the within Services our $XXX revenue unfunded business driven Slide in in million services will XX% congressional if revenue a is our is $XXX our Business decline review impairment to gain Government and total Services Government continue segment. fee of to Processing achieved We sale quarter, approval. as to Services when margins to program million program receive an of

Services expect third the remainder consistent year, we the be Government to quarter. For revenue of the with

a services We period provide the will for care continue to after health business time of closing. to

under offsetting the received the Our these be other and or revenue expenses reported segment. transition agreements, will we in services TSAs,

expenses to and Total beginning restructuring regulatory XX. were for expenses expenses, excluding down million. the Let's to X% turn Slide quarter, $XXX on

represents of our transition cost-based This structure. full to a quarter variable servicing the first quarter

of of these providing XXXX. our achieve also the at health end of reported these ability ability of of under segment. We are with The to savings the in revenue associated other steps also services anticipate the completion MOHELA the by the TSAs. expenses. to transition the services remain services in We are we care expense the to will and related TSAs and beginning completion occur important We in of the the The level the confident first expenses MOHELA year. outlined our to to remove half to be

on XX. financing activity Turning to our allocation capital highlighted is that Slide and

management the with loan education million capital and X.X liability $XX quarter, asset funded adjusted an strategies disciplined million. of maintain X.X%. XX% we to and equity portfolio ratio our of to shares tangible for continue term repurchased We In

in book to Given value. cash a plan quarter, discount for significant at purchases our double to current assuming trade and amount of fourth to the tangible we capital continue levels the outlook flows, we

$X.X of million months, of potential our $XXX maturities look cash high-quality current remaining we favorable will billion authorization grow $X.X environment hand, for the refinance with we that As under for and billion loan of at rate a significantly next us the have product. unsecured on the XX allow plan debt to

servicing time cash a per reduce shareholders. In updated XXXX to $X.XX sale will overall cost-based shared structure, over resolution service reflects debt and core move outstanding outlook Healthcare, of legacy invest, strategic our further distribute reduce to of excess Our variable and to full completed available enhance execution shareholders. to the to more expenses $X.XX the earnings matters summary, year regulatory Xtend value to be of for our actions the share on order in

now as to express for Thank open I'd your hard Navient you work continue close, call for time any I As for to like will actions. our execute questions. on team the strategic their appreciation my and to members I we

Operator

[Operator Instructions] Bill come question Partners. Seaport the from Research Our from of Ryan line first will

William Ryan

the First just is expense question side equation. the of on

the take it and did math the it target and the pretty at other of annualized kind of like I looks was the back rate. of and correct. you're unallocated get announcement QX other segment $XX target you segment, much the overhead, was And Looking there, regulatory have expenses when at and initially then outlined $XXX look expenses, to were correctly a in some the that kind I million million corporate in I to if January initial think the for run out the

the it bit of are targeting said overhead? slower you unallocated you better So a $XXX corporate cadence be XXXX, to run annualized kind looking into than million but know level of reduce it, little in might I rate expenses a now

David L. Yowan

that perspective. remarks, from So the move fourth first than the ultimately Good to have out so federal we the moved the BPS TSA will the We're mentioned is consider as are do expect into would in end by half certainly to quarter the little first have with results going we thing other -- I quarter, of expense from represent of those pleased segment to from and XXXX. this question. also segment. That's things the million but thanks, segment say then takeout bit $XX my a the I half in by expenses, one far less an take Bill. both that

all, we pleased to a better $XXX of lot with are obviously results, ahead but So than in the be that work pace million on us. of still there's and

William Ryan

follow-up, one Joe. And Okay.

securitizations. those is things company? of period? of are capital cash amortization believe past of What due amount the Some date. early kind there's securitizations, some to in your a be early in that what trapped these called are dollar involved -- I and securitizations the And the could lot maturity to going the the I this chances in like release know of legal final to amortization

Joe Fisher

trust of each become us. that the get not they But I turbo full releasing get So at you means level, they that you back point, that when with features which are to offline to amount to dollar XX% cash mentioned, securitization. as full can a

So of sense to on in that we call look economically a trust-by-trust at this whether basis time. that trust terms at makes the

I it's environment something certainly and there's of based the that So whether at we specific when times. that on those could time current no sense you those, it the we call call makes give at funding trust would to but look frame

Operator

Our Sanjay of next Sakhrani KBW. line the question from comes from

Sanjay Sakhrani

what the go sort think forward you private recovery sort over should how more? led of that in of we student loans the expected could about decline for values Joe, the and of going risk to the and

Joe Fisher

Sure.

also for and evaluate time we a Sanjay, the know, in but a assumptions, critical our third you've long company you accounting all quarterly, of followed bigger this take as quarter. push certainly So

significantly you've quarter. So us the look more to if you prior seen rate third periods, in that adjust recovery

point, ago, a year we about in $XX recovery case impact. So million rate that adjusted our was and a down

it This million. was $XX quarter,

is curve, that. I comfortable half well-seasoned. high-quality these that book for look where adjust higher is the say of our of originations, to we're are very other challenge us half continue that as we'll overall now. are that The very at we we So would the for new certainly borrowers quality,

recover. So as past, challenging number offered have we programs these makes they have more that borrowers to ultimately it which default, a the hit over utilized that the of

RICO that So feel rate. something balance the look and certainly, to that so risk million we today, recovery It's we entire very we is comfortable it's But that $XXX around that the with XX% roughly at. evaluate.

Sanjay Sakhrani

And know of margins sensitivities, interest think basis? asset about as a interest Okay. just it just goes we forward both trying net just of Great. our the across don't about to And then classes just inform on this about rates I'm curve. that how accordingly. we as you the I models down, sort path go-forward Joe, so think we think if should some maybe mind,

Joe Fisher

Yes.

think significant -- I all, of a think first us. there's for opportunity I

quarters in opportunity from here. these haven't if way that for refi drop the -- they're a forecasted, play new you several we is If seen the something perspective, substantial, rates out just that volume rate

to we doing when billion have $X go you So were back of originations. XXXX to

a have here with significant as a FFELP cause the you're does rate we the lag daily good themselves reset environments. past NIM, rates. But right, our decline assets monthly. think pressure opportunity in The falling that or and on seen quarterly you've either I are liabilities there's in

does So additional create pressure. that

quarter. that anticipate although occurring the Some in of this quarter, the and quarter saw into we that on actually you occurred pressure spread FFELP would it late in the fourth

spread predicted, of think the rates guidance the if fourth well. quarter. that relates the to in decline translates EPS, about go And into year would for similar gave roughly if you for of as So the NIM I to first continue as half quarterly levels the that that it to as the guidance FFELP

Sanjay Sakhrani

you like any to another XXX think to there does rates, basis of about points we if like, should sense is sensitivity And year, so how the have next like NIMs? that what

Joe Fisher

actually in start of a of XXX points income. you basis that pickup So from getting pickup terms the floor

and basis evenly it's start a if flat that's about or basis settle XX you quarters, XXX should finally rates experienced. environment, back that So once distributed you're points. NIMs as we've to historically XX that the And get to you over offset low thinking down, I say get if points the would say, rate beyond

Operator

line Our JPMorgan. of from Rick next question comes from Shane the

Richard Shane

a So talk that policy the a through queue sort Sanjay the faster the target have recovery policy. Should we because wanted the change I to 'XX? fourth rate in ongoing run or I quarter. talked see as I than to for move little the to other of question you've reserve about is Only in about as increasing have repurchases we cadence

David L. Yowan

ability we've through actions. loan question. share In little reducing talked well if all flows the debt. on Look, as X uses our from And we've to of a as for portfolio. thanks We've repurchases set in cash BPS divestment you got we growth, cash generate loan potential strategic that, out that, of about about fourth the some talked the the quarter, Rick, the and of of investing bit will. X our

look -- at $X.XX example, this value, our as our it think I increased we tangible book and by almost share. a quarter for

up price, At the value XX% pretty attractive it's of us. today's us $XX. at to feels roughly for sale our to opportunity buy net around stock So back asset

'XX, we're As have combination. we going look We'll a complete business plan. to the into

value of market conditions, reduction, provides You in repurchases growth combination value investment share and best should that a depend It loan rates, will cetera. debt et to our shares, we expect shareholders. of think the on

as think may and So mix the conditions change. about stay a environment tuned and for the XXXX changing plan

Richard Shane

Got it.

That's Okay. helpful.

to to XX% this we that housekeeping issue through obviously the housekeeping by a an of that sensitive reduction talked quarter, of like But look XX% way in the now? in sort -- most of what does force other 'XX? one the pretty expect impacted. folks Just prior the trajectory isn't this of to is do And in time. process and about because that end Do through next year? you the be over Where stand you

David L. Yowan

halfway working chunk corporate corporate care And Rick, the through expense through also accomplished MOHELA reductions largely still transfer, mid-September. -- do then and and Yes. one That's reductions time. The in our can so, is that there's occurred accomplished half then footprint. work GS, which a health X. if find wind-down that. We're, Government also would been through And transaction, to It significant in remaining we're that. have we Services the footprint some occurred about which expense occurred of on be transaction, over further largely there July hard incremental

So along given and the we what as we're to are about we halfway here today clear that and other we've journey you that. around us sit the that guidance into steps to the visibility target have get

Richard Shane

I folks that's issue. realize do again, And impacted for the sensitive a

Operator

come line DeVries Mark question next of from Our Bank. Deutsche the from

Mark DeVries

of I get the kind target are there hoping lenders grow those from list preferred share on How of lending of much think also loans? go? you your anticipated and in-school in to update share there of are to all making now at kind much the room of you Yes. kind issues schools? to an resolving How was to wallet market to schools on room is many efforts CFPB? How business. where grow the with uplift any And you is your your

David L. Yowan

concluded a met in-school. season look, we our So we like just for successful in We that. targets feel peak

that a schools this as economics, not lane, You would describe whole, out schools we the like of preferred remind both feel terms our penetration succeed. list the it, do refi of robust going have a borrowers about course, we loans. places season credit loan have schools to in where had in-school market seek that leverage feel market. The as we can and best I particular growth we for-profit to kind meet our we as and the that we meet profile, I our offer criteria, saw our you swim feel we that we're like In that products. in good in of that like includes we across to lending

-- the contingent it still our question is don't an company. share remains anticipate think I the don't was market impediment, I a to liability Our think CFPB therefore, matter, low-single product. that the I of there. digits was a in -- in-school don't on overhang I an think,

And that I anything for a it occurring so either. in don't market think different catalyst will be

Mark DeVries

Okay. Got it.

it kind when I I a P&L event sell this, updated thinking, of sorry of to the kind a you but it's And won't happens? impairment when missed complete you if meaningful that Government of the am timing think marked any Services where likely to might goodwill right you And sale? you've be therefore, on it it in given think and

David L. Yowan

do a at not some one than Yes, time. discussions been Obviously, for for active hard transaction know on Mark, in piece you to going it. working working urgently very we've we are It on hard that. We're to party of give timing, so we're sure. that working do I'm to takes that. and that we're working on it more but that prediction

Mark DeVries

of when is it Got it. And likelihood event question, on -- part P&L the it won't in the all latter that right a it be happens? am I

David L. Yowan

we've obviously are Yes. might Look, goodwill book took we where Yes. we we a sale impairment, up I a we the when -- where we account think from transaction perspective. if sorry, into value think and taken get we end when

Operator

Our next of from from Ma Barclays. will question the Terry line come

Terry Ma

market we rate you do kind get the cuts. of XXX there's I if any to for addressable if way size loans was points refi of wondering for basis

did I billion, I you think higher? think it were but also about guys market so much addressable called much XXXX, the rates lower, $X you the out was

Joe Fisher

Thanks, And Terry. good Yes. question.

about loans I've about loan about thought within investors $X.X always Department the that portfolio. you've direct and way the got it are the at Education, think is with so talked it of that of I trillion

that and are billion that market. XX% loan programs, for borrowers, significantly I that in that's lower roughly If from that opportunities we obviously our are where is payments of the various move advantage qualifies and that for opportunity That's wildcard the the than forgiveness XXX say there you lower direct $XX big is for you puts XX% to just think in for rate and them about higher of say of portfolio their versus today. And to looking looking of programs basis that enough would of at those take all level. this terms points in a

how think that's mentioned, ago, back say as a And just I'd as about to do total were we addressable to, able would I it $X few a market. years So point billion. you we

there's available sizable over couple opportunity of the if interest next play potential to a So us years rate these forecasts think I out.

Terry Ma

it. expect missed future I helpful. the should the may the guide $XX that That's of fourth of run we have Got it, kind kind And buyback but million, for quarter, rate in quarters? to continue

David L. Yowan

Terry, the amount quarter Yes, the actually, million. that targeting $XX fourth is we're in

financial loan just the total is and choose use talked will. One to Joe among that's have And if in market third growth. proceeds, would put ourselves what forward, So the we of position look, the capacity do in our say, double flexibility we X different is to we a of did advantage quarter. about going opportunity addressable I and of tried financial to you what where for sensitivity that. take

that then a low the our for And have so a that some intend product, of take we environment we will to fair rate share allocate and and marketplace. resources to capital allocate we we if have demand increase in --

the by in as repurchases. I share make do financial flexibility about have $X.XX the as that value quarter. fact the book our well and increased We earlier decisions about that to talked capacity tangible

advantage buy to took in of back value we trade asset now tangible a the back company's that's and at our attractive we so XX% And book XX% -- net of the the an quarter rest value. We our shares value debt. shareholders pay the to think opportunity of cash hand on at of for

flexibility deliver it's as them question our that So of we'll and of that developed best shareholders. we value see we we've opportunities think take a capacity can and advantage to

Operator

of from TD Orenbuch question line Cowen. next Our from comes Moshe the

Moshe Orenbuch

wondering, mentioned you value. Just $XX book tangible the

process, of of on need you'd that something is tangible to planning part be to return what book thought As sell to the have think would able you'll that? that given And value? to? you in earn that 'XX, you at you to that reach that to it Like Or how think about steps to terms? And you what expect broad do to in 'XX? take something do get does brush it's get type

Joe Fisher

sell, referring Sorry, say to? to when are you you what

Moshe Orenbuch

marketplace. the In

trade stocks XX% price or You right? certain mentioned they need a above For return book, value, on of a to at right? asset book level to value, tangible net

David L. Yowan

just my is that see So value there our today is Moshe, tangible point a discount we discount with shares. -- a to book to

back. that proceeds in We buy above opportunity, of shareholder a statement have we about this quarter We're just use amount. the about our here's not making the a the them a think I'm financial base. of statement and fourth rest flexibility making for is to current the good

Moshe Orenbuch

kind goes just certainly is I'm is and planning happened No, that. all process equal, has thought because gave wondering that appreciate I you other if you've things BPS part to what down. of as EPS, of the sold

have kind portfolios in of in other words, You offset still it. all of of back some all than are that buying that by the maybe you amortization. stock, of more it, maybe But

know the about So think I returns book value? to on level to -- just wanted of tangible that that how

David L. Yowan

Yes.

Earnest that divesting rid returns earn becomes -- of So then pricing things bigger a our model. mid-double-digit business the of we're Earnest, the part about is becomes getting BPS relatively we're on to as in in of growth there one

at that so particular in targeting margin business. loan on the mid-teens we're returns And growth,

Moshe Orenbuch

it. And the the separate piece? talked what Have Got legacy X? book. versus roughly as about have in average credit you the you you portfolio, X XXXs, legacy are the The your out on the just refi on piece they're is a refi separated out follow-up, pieces the the in and book the losses equal, private the margins margins what are those right? But on

Joe Fisher

Yes.

historically, below on We X%. above the And legacy have refi the X%. not they've that typically, assets, disclosed But is historically. been

Operator

line of the of question from come will Our America. next Richam Bank Nate from

Nathaniel Richam-Odoi

you're more strategies potentially You give from product partner previously through get Earnest there? through to products of talked you lifetime what extensions us update if extensions. these any plan or value to like looking your product implementing about like Can you kind are And your to relationships introduce? new some marketplace like

David L. Yowan

Yes.

offered opportunity navigate and students are customers, They're of kind that moment, -- our attract their the number you debt. -- our that and talked those at to to monetize It engagement other could are help us. The about some -- others professionals of are engagement, there, through to help drive young manufacture. products. if could so those or to and will. drive has other looking activity of uses still existing that top at include stages all relationships? to those We're their that. the could help possibilities. are engagement, a Earnest Those increase help platforms target volume we manage students of help also a additional -- for we're the with at how in way we potentially include And there to engagement And of early do it charge, programs graduate is get So the it which to funnel increased could them, education manufacture look with volume to we trying no driving opportunities journey could try segment products

So we're we the that's of to at. that possibilities range but don't have anything among looking announce,

Operator

Adelson the come question from of line next Morgan Stanley. from Jeff Our

Jeffrey Adelson

But the each piece that the how a should that's we some refi probably for bucket private help has delinquency delinquency I -- forward? a increasing guess just us pull is happening rate been trend and going a has been about into I product. now. your lending mix in-school within on pretty I going versus product of was think years shift steadily curious, I you know Yes, bit of few that know on could maybe the what's

Joe Fisher

Jeff. Sure,

look so been prior at buckets the just on just quarter. from the fairly year-over-year early-stage So has various XX as you delinquency to if side, private flat you buckets XX and look

of disaster We said last Overall, just been to I was and our X% charge-off late-stage relatively the granted have my that's uptick reiterate, of have as been quarter terms just did the that remarks, an relief. over consistent. years at would couple X.X% in to we due in in that expectations uptick forbearance seen an delinquencies. in I see

the year. through I So would in the that that slightly, do course delinquencies that we that but $XX referenced additional quarter anticipate is that next that occur what flow would is of actually will reduce million October seen back over will that we've

do from adequately charge-offs. we they'll think future today, slightly for reserved we're be levels feel while the we're So we seeing any elevated that

Jeffrey Adelson

so have in government end of in earlier specifically of on-ramp noticed guys the changes from any October? the And impact the you any actions, far

Joe Fisher

No.

If for, something we've in borrowers at is you several here of been back getting our into for FFELP and this been preparing years look it's stable terms that fairly portfolio, repayment.

So you of had reserve that years for we perspective, that and time. it a obviously this watching from couple about a may preparing were remember back, and talking at started

have these at seen So we impact. stages, early not any

Operator

of come America. And for Ryan today will Bank from our line last of from Shelley question the

Ryan Shelley

should you about would I paying X.XX% Are upcoming helpful. ask June due debt refinance? considering think about considering be market to just Any Are to addressing of maturity, there 'XX. investors guys just color the very coming wanted to How that? you note the down? you

Joe Fisher

Sure.

billion So of today, we sit on $X.X cash.

We have private roughly billion $X.X $X.X unencumbered billion loans of portfolio. with that of our being

OC of another an billion nearly $X our overcollateralization additional that billion FFELP as private of portfolio. We credit against in can well borrow have $X in our portfolio as we

we available in us all that maturity paid $X.X upcoming see Friday. last say to the that top any next off would to we October billion over we address the additional this on expect maturities in So just cash the flows X of all, months. I have to

by very that generated. we with available have position any liquidity from equally, plus sitting cash cash are just the as cash the to reduce available borrow that but there we we So overall $XXX the million and to against need of listed, items does we extent comfortable debt the And well. feel I where

Ryan Shelley

Got it.

issuing on Or comfortable are Would understood with again? front. considering in you would So high-yield market those resources? consider you the you -- that issue

Joe Fisher

last We that. look tried when years, if we've of be to evaluate couple opportunistic possible. over the And certainly you

certainly we're advantage very current out. anything with of our the not but comfortable position, going I'm right So now markets may take to attractive, we are rule If that.

Operator

Jen that, would it with back Earyes over remarks. I like for now turn to closing And to

Jen Earyes

have questions. thank any the and us follow-up Victor, call. for if you, joining morning. Please Thank you, you this everybody, contact now This concludes me

Operator

for the conference. you your does in participation Thank conclude program. today's This

You may Everyone, disconnect. great have now a day.

Navient (NAVI) 30 Oct 242024 Q3 Earnings call transcript