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Completes over $900 Million of New Financings during the Fourth Quarter – Repurchases $691 Million of Unsecured Debt during the Fourth Quarter – Approves Additional $700 Million Share Repurchase Authorization in December 2015 – Total Delinquency Rates at Lowest Year-Ending Levels for both FFELP and Private Education Loans since 2005
Navient (Nasdaq:NAVI) today released fourth-quarter and full-year 2015 financial results that include over $900 million of new financings and $691 million repurchases of unsecured debt during the fourth-quarter 2015. Total delinquency rates are at the lowest levels for both FFELP and private education loans since 2005.
“This quarter’s and full year’s results demonstrate that the foundation of our enterprise value remains intact and strong,” said Jack Remondi, president and CEO. “Even with financial market turmoil, we continued to generate earnings and cash flow in-line with our expectations, allowing us to repurchase or retire over $2.3 billion in unsecured debt, acquire over $3.7 billion in loans, and return $1.2 billion to shareholders through dividends and share repurchases in 2015. These capabilities remain in place as we begin 2016.”
For the fourth-quarter 2015, GAAP net income was $286 million ($0.79 diluted earnings per share), compared with $263 million ($0.64 diluted earnings per share) for the year-ago quarter. For 2015, GAAP net income was $997 million ($2.61 diluted earnings per share), compared with $1.1 billion ($2.69 diluted earnings per share) for 2014.
Core earnings for the quarter were $172 million ($0.48 diluted earnings per share), compared with $217 million ($0.53 diluted earnings per share) for the year-ago quarter. The decrease is primarily the result of a $72 million reduction in net interest income, partially offset by a $23 million decline in provision for loan losses. Excluding expenses associated with regulatory-related costs, fourth-quarter 2015 and 2014 diluted core earnings per share were $0.49 and $0.54, respectively. Fourth-quarter 2015 and 2014 operating expenses included $7 million ($0.01 diluted earnings per share) and $9 million ($0.01 diluted earnings per share) of regulatory-related costs, respectively.
Core earnings for the year were $694 million ($1.82 diluted earnings per share), compared with $818 million ($1.93 diluted earnings per share) for 2014. Excluding expenses associated with regulatory-related costs, 2015 and 2014 diluted core earnings per share were $1.85 and $2.10, respectively. Full-year 2015 and 2014 operating expenses included $19 million ($0.03 diluted earnings per share) and $120 million ($0.17 diluted earnings per share) of regulatory-related costs, respectively.
