Navient Corporation · NASDAQ:NAVI
Navient — Q4 2016 Earnings Presentation
73 slides from Navient's earnings presentation, Feb 27, 2017
Slide 1: 2016 4th Quarter Investor Deck
2016 4th Quarter Investor Deck February 27, 2017
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of December 31, 2016 (unless otherwise noted) and should be read in connection with Navient Corporation’s (Navient) Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”),
Slide 3: Navient company overview
• Navient provides asset management and business processing services to education, healthcare, and government clients at the federal, state, and local levels. We help our clients and millions of Americans achieve financial success through our services and support. - $111 billion education loan portf
Slide 4: Operating Results, Core Earnings Basis
Operating Results “Core Earnings” Basis (In millions, except per share amounts) Q4 16 Q4 151 2016 20151 Adjusted Core EPS before regulatory-related $0.47 $0.48 $1.89 $1.82 costs and reserve for legal contingencies Regulatory-related costs ($0.00) ($0.01) ($0.04) ($0.03) Reserve for legal contingenci
Slide 5: High Quality, Well Seasoned Education Loan Portfolio
High Quality, Well Seasoned Education Loan Portfolio FFELP Portfolio Private Education Loan Portfolio Total Education Loan Portfolio • Largest holder of FFELP loans with $111 Billion • Largest holder of Private Education over $87 billion outstanding loans with over $23 billion outstanding 79% • Port
Slide 6: FFELP Loans Segment, Core Earnings Basis
FFELP Loans Segment “Core Earnings” Basis ($ In millions) Q4 16 Q4 15 2016 2015 Net income $68 $71 $272 $308 Average FFELP Loans $88,914 $97,472 $92,497 $100,421 Net interest margin 0.89%1 0.84% 0.85%1 0.84% Provision for loan losses $13 $12 $43 $46 Charge-offs $12 $18 $54 $61 Annualized charge-off
Slide 7: FFELP Loans Segment Credit Quality
FFELP Loans Segment Credit Quality “Core Earnings” Basis ($'s in millions) FFELP Education Loan Portfolio December 31, 2016 December 31, 2015 Balance % Balance % Loans in-school/grace/deferment (1) $5,871 $8,257 Loans in forbearance(2) 10,490 13,298 Loans in repayment and percentage of each status L
Slide 8: Private Education Loans Segment, Core Earnings Basis
Private Education Loans Segment “Core Earnings” Basis ($ In millions) Q4 16 Q4 15 2016 2015 Net income $41 $56 $219 $233 Average Private Education Loans $24,237 $27,551 $25,361 $28,803 Net interest margin 3.08%1 3.61% 3.41%1 3.67% Provision for loan losses $87 $110 $383 $538 Charge-offs2 $130 $141 $
Slide 9: Private Education Loans Segment Credit Quality
Private Education Loans Segment Credit Quality “Core Earnings” Basis ($'s in millions) Private Education Loan Portfolio December 31, 2016 December 31, 2015 Balance % Balance % Loans in-school/grace/deferment (1) $1,393 $2,040 Loans in forbearance(2) 790 973 Loans in repayment and percentage of each
Slide 10: Private Education Loans Delinquency and Charge-off Rates
Private Education Loans “Core Earnings” Basis Private Education Loan Charge-Off Rate by Segment Private Education Loan Total Delinquencies by Segment 12% 11.1% 25% 23.7% 21.9% 10% 9.2% 18.1% Total Delinquency Rate 20% 7.7% 15.3% 6.9% 15.2% 8% Charge-off Rate 15% 5.4% 6% 10.4% 9.3% 3.9% 10% 8.1% 7.4%
Slide 11: Private Education Loans Default Performance
Private Education Loans Segment Default Performance Private Education Loan Historical Defaults by Payments Made Private Education Loans Outstanding by Payments Made 100% 100% 95% 96% 98% 99% $18 92% 93% 94% 89% 90% $15.7 86% $16 $15.0 Percent of Total Defaults 82% 77% $13.5 $14 $’s in billions 68% $
Slide 12: Private Education Loan Seasoning, Q4 2016
Private Education Loan Seasoning – “Core Earnings” Basis Quarter Ending December 31, 2016 Traditional Portfolio Monthly Scheduled Payments Received Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment 1,271 Loans in Forbearance 205 1
Slide 13: Private Education Loan Seasoning, Q4 2015
Private Education Loan Seasoning – “Core Earnings” Basis Quarter Ending December 31, 2015 Traditional Portfolio Monthly Scheduled Payments Received Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment 1,859 Loans in Forbearance 292 1
Slide 14: Business Services Segment, Core Earnings Basis
Business Services Segment “Core Earnings” Basis (In Millions) Q4 16 Q4 15 2016 2015 Net income $71 $81 $308 $338 Number of accounts serviced for Department of Education 6.2 6.3 6.2 6.3 Total federal loans serviced (in billions) $293 $288 $293 $288 Contingent collections receivables inventory (in bil
Slide 15: Business Processing Solutions
Business Processing Solutions Well-positioned to expand to additional clients and asset types Business Services Revenue1 $800 • Strong business franchise - Capacity to process large volume of $700 transactions and manage complex $625 $595 administrative requirements $600 $’s in millions - Robust com
Slide 16: Federal Loan Servicing
Business Services Segment Federal Loan Servicing Total Federal Loans Serviced $325 $300 $275 $’s in billions $250 $225 $200 $175 $150 2012 2013 2014 2015 2016 Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 16
Slide 17: Higher Education Industry
Higher Education Industry Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 17
Slide 18: Navient Helps Borrowers Successfully Repay Their Loans
In Its Role As Student Loan Servicer, Navient Helps Borrowers Successfully Repay Their Loans Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 18
Slide 19: Majority of Student Loan Balances Are Less Than $20,000
The Majority Of Student Loan Balances Are Less Than $20,000 Distribution Of Borrowers By Average Balance, 2015 Less than $5,000 16% 19% $5,000-$9,999 $10,000-$19,999 $20,000-$39,999 $40,000 or more 23% 19% 23% College Board, "Distribution Of Borrowers By Amount Of Outstanding Education Debt, 2015,,"
Slide 20: Student Debt Is More Reasonable Than May Be Evident
On An Individual Basis, Student Debt Is More Reasonable Than May Be Evident The average debt of bachelor's degree …This translates to an increase in holders is now around $28,000 in real monthly payments of about $60 terms… compared to 1999-00 graduates. Average debt of four-year bachelor's Monthly
Slide 21: Borrowers Who Struggle Most Are Often Non-Completers
The Borrowers Who Struggle The Most Are Often Non-Completers With Low Levels Of Debt Borrowers who do not complete a degree … As a result, borrowers who run into trouble default at a rate almost three times higher repaying usually have below-average amounts than borrowers who earned a degree … of de
Slide 22: Recent College Graduates Have Seen Wages Increase
Recent College Graduates Have Seen Wages Increase Since The Great Recession Median wages for recent graduates by degree type • Median wages for recent college graduates have Bachelor’s degree High school diploma continued to rise since the +5.9% Great Recession, 45,000 increasing more than 5.9 40,00
Slide 23: Class Of 2015 Loan Delinquency Rates Lower Than Class Of 2010
Class Of 2015 Student Loan Delinquency Rates Approximately 3 Times Lower Than Class Of 2010 Federal loan delinquency rates six months after end of grace period and unemployment for bachelor's degree holders Unemployment 30 29 6.5 31+ Days Delinquent 27 6.0 25 91+ Days Delinquent Unemployment Rate (%
Slide 24: Navient's Default Prevention Expertise Lowered National Default Rate
Navient’s Default Prevention Expertise Was A Key Factor In The Decline Of The National Default Rate • The cohort default rate (CDR) 2013 three-year cohort default rate measures the percent of borrowers 11.3% who defaulted on a student loan within three years of entering Navient's CDR is 31 percent l
Slide 25: Benefits Of A College Degree Outweigh The Costs
The Benefits Of Obtaining A College Degree Outweigh The Costs By A Wide Margin Cumulative earnings net of college repayment costs "Combined, the workers High School Diploma Bachelor’s Degree with a Bachelor’s degree or $ 1.2 M higher have accounted for Cumulative earnings (2011 USD) 73 percent (8.4
Slide 26: Young Adults With Degrees Score Higher On Financial Health
Young Adults That Complete A College Degree Score Higher On Financial Health, Including Employment & Incomes Financial health index score Employment status 100 Employed full time Employed part time No college degree 80 College degree (associate or higher) Advanced degree 89% 8% Percent (%) 60% 59% B
Slide 27: 4 In 10 Did Not Borrow For Their Education
Overall, 4 In 10 Did Not Borrow For Their Education & 2 In 10 Borrowed & Finished Paying Their Student Loans Did not borrow Borrowed, paid off Borrowed, still have debt College borrowing status College borrowing status by age 100% 80% 44% 41% 37% 38% 43% 60% 39% 40% 15% 24% 12% 25% 40% 29% 20% 44% 4
Slide 28: Program Complexity Can Be Streamlined
Program Complexity Can Be Streamlined Deferment Forbearance 1. School (1) Discretionary Forbearance 2. School Full-Time (2) • Hardship Forbearance 3. School Half-Time (2) Mandatory Forbearance 4. Post Enrollment (1) • Medical or Dental Internship Residency 5. Graduate Fellowship (3) • Department of
Slide 29: Funding & Liquidity
Funding & Liquidity Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 29
Slide 30: 2016 Capital Markets Summary
2016 Capital Markets Summary • Acquired $3.7 billion of education loans • Issued seven FFELP ABS transactions totaling $5.8 billion - FFELP ABS spreads improved 23 basis points or 17% from 2016-2 to 2016-7 • Issued one Private Education Loan ABS transaction totaling $488 million • Issued $1.3 billio
Slide 31: Secured Funding
Secured Funding 2016 Issuance ($mm)1 • Navient is among the largest issuers of 1 Ford $11,033 Auto / Floorplans ABS globally, having issued over $280 2 AmeriCredit / GM Financial $9,106 Auto / Floorplans billion of Private Education and FFELP 3 Santander2 $8,993 Auto ABS transactions to date 4 Chase
Slide 32: Recent FFELP ABS Transactions
Recent FFELP ABS Transactions NAVSL 2017-1 NAVSL 2016-7 Pricing Date: February 8, 2017 October 26, 2016 Settlement Date: February 16, 2017 November 3, 2016 Issuance Amount: $1,003M $896M US Govt. Guaranteed US Govt. Guaranteed Collateral: FFELP Stafford, Plus and Consolidation Loans FFELP Stafford,
Slide 33: Recent Private Education Loan ABS Transactions
Recent Private Education Loan ABS Transactions NAVSL Trust 2016-A NAVSL Trust 2015-C Pricing Date: January 28, 2016 December 1, 2015 Settlement Date: February 4, 2016 December 10, 2015 Issuance Amount: $488M $359M Collateral: Private Education Loans Private Education Loans Prepayment Speed(1): 4% Co
Slide 34: Managing Unsecured Debt Maturities
Managing Unsecured Debt Maturities (par value, $ in billions) $2.6 $2.5 $2.4 $2.1 $2.1 $2.1 $1.5 $1.7 $1.6 $1.5 $1.3 $1.4 $1.4 $1.0 $0.7 $0.6 $0.8 $0.8 $0.1 $0.1 $0.0 $0.0 $0.0 $0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ As of December 31, 2015 As of December 31, 2016 Long Term
Slide 35: Conservative Unsecured Debt Profile
Conservative Unsecured Debt Profile $70 Years Ending December 31 1.35 (par value, $ in billions) $60 1.30 $51.7 $48.7 $47.2 $50 $45.1 1.25 $38.0$39.4 $40 1.20 $30.2 $28.0 $30 1.15 $24.0 $22.4 $23.0 $21.8 $22.1 $20.1 $18.8 $17.0 $17.8 $18.3 $17.5 $17.2 $20 $15.1 1.10 $13.9 $10 1.05 $0 1.00 2006 2007
Slide 36: Education Loan Portfolio Generates Significant Cash Flows
Education Loan Portfolio Generates Significant Cash Flows Projected Life of Loan Cash Flows over ~20 Years Enhancing Cash Flows • Generated $3.6 billion of cash flows in 2016 $’s in Billions FFELP Cash Flows 12/31/16 • Reduced unsecured debt by $1.4 billion and returned Secured $1.0 billion to share
Slide 37: FFELP Cash Flows Highly Predictable
FFELP Cash Flows Highly Predictable $’s in millions as of 12/31/2016 2017 2018 2019 2020 2021 2022 2023 2024 Projected FFELP Average Balance $83,192 $75,989 $68,492 $61,307 $54,372 $47,485 $40,842 $34,450 Projected Excess Spread $854 $841 $764 $690 $643 $589 $530 $472 Projected Servicing Revenue $40
Slide 38: Secured Cash Flow
Secured Cash Flow $ in Millions 2016 2015 2014 2013 2012 FFELP Term Securitized Servicing (Cash Paid) $ 342 $ 387 $ 407 $ 507 $ 526 Net Residual1 (Excess Distributions) 624 724 680 476 628 Other Secured FFELP Net Cash Flow 83 173 216 1,199 934 Total FFELP 2 $ 1,049 $ 1,284 $ 1,302 $ 2,182 $ 2,088 Pr
Slide 39: FFELP ABS
FFELP ABS Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 39
Slide 40: Legal Final Maturity Date Update Sponsor Support Activities
Legal Final Maturity Date Update Sponsor Support Activities • Exercise Optional Servicer Clean-Up Calls: In 2015, Navient exercised cleanup call options related to 12 FFELP ABS trusts totaling $1.1 billion of bonds outstanding. On August 30, 2016, announced the exercise of the optional servicer clea
Slide 41: Legal Final Maturity Date Update Sponsor Support Activities
Legal Final Maturity Date Update Sponsor Support Activities • Disclosure of Loan Performance Data: - Enhanced our quarterly reporting spreadsheets for Navient-sponsored FFELP ABS trusts to provide additional information on: • The level of enrollment in the IDR program • The payments owed by FFELP lo
Slide 42: Recent FFELP ABS Issuance Characteristics
Recent FFELP ABS Issuance Characteristics FFELP ABS Transaction Features Collateral Characteristics • Issue size of $500M to $1.0B • Insurance or guarantee of underlying collateral insulates bondholders from • Denominated in US$ most risk of loss of principal(1) • Triple-A rated senior notes make up
Slide 43: FFELP Loan Program Characteristics
FFELP Loan Program Characteristics Parameter Subsidized Stafford Unsubsidized Stafford PLUS/Grad PLUS Consolidation Borrower Student Student Parents or Graduate Students Student or Parents Needs Based Yes No No N/A Federal Guarantee of Principal 97 - 100% 97 - 100% 97 - 100% 97 - 100% and Accrued In
Slide 44: Navient Stafford & PLUS Loan Prepayments
Navient Stafford & PLUS Loan Prepayments • Annualized CPRs for Stafford/PLUS ABS trusts have decreased from pre-2008 levels as incentives for borrowers to consolidate have declined • Higher prepayment activity in mid-2012 was related to the short term availability of the Special Direct Consolidation
Slide 45: Navient Consolidation Loan Prepayments
Navient Consolidation Loan Prepayments • CPRs for Consolidation ABS trusts declined significantly following legislation effective in 2006 that prevented in-school and re-consolidation of a borrowers’ loans • Higher prepayment activity in mid-2012 was related to the short term availability of the Spe
Slide 46: Private Education Loan ABS
Private Education Loan ABS Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 46
Slide 47: Recent Private Education Loan ABS Issuance Characteristics
Recent Private Education Loan ABS Issuance Characteristics Private Education Loan ABS Transaction Features Collateral Characteristics • Issue size of $250M to $750M • Collateralized by loans made to students and parents to fund college tuition, room • Triple-A rated senior notes, Single-A rated and
Slide 48: Navient Private Education Loan Programs
Navient Private Education Loan Programs Undergraduate/Graduate/ Smart Option Direct-to-Consumer (DTC) Consolidation Career Training Med/Law/MBA Origination Channel School School Direct-to-Consumer Lender School Typical Borrower Student Student Student College Graduates Student Typical Co-signer Pare
Slide 49: Navient Private Education Trusts
Navient Private Education Trusts Summary Information Sallie Mae Navient 2011 - 2016YTD Issuance Program SLM SLM SLM SLM SLM SLM SLM SLM SLM SLM SLM SLM NAV NAV NAV NAV NAV NAV 11-A 11-B 11-C 12-A 12-B 12-C 12-D 12-E 13-A 13-B 13-C 14-A 14-CT 14-A 15-A 15-B 15-C 16-A Bond Amount ($mil) 562 825 721 54
Slide 50: Navient Portfolio Transition to Seasoned Collateral
Navient Portfolio Transition to Seasoned Collateral • Securitized collateral will continue to season given the company transitioned from originations to portfolio acquisition and management • Most defaults occur early in repayment; loan performance improves as loans season • As of December 2016, the
Slide 51: Private Education Loan Trusts Prepayment Analysis
Navient Private Education Loan Trusts – Prepayment Analysis • Constant prepayment rates increased in 2007 due to the introduction of Private Education Consolidation loans, then declined following our decision to suspend our consolidation loan program in 2008 14% Constant Prepayment Rate (CPR) 12% 10
Slide 52: Cohort Default Triangles
Cohort Default Triangles • The following cohort default triangles provide loan performance information for certain Private Education Loans of Navient Corporation and its consolidated subsidiaries that such subsidiaries’ securitization criteria (including those criteria listed below): - Program types
Slide 53: Cohort Default Triangles
Cohort Default Triangles • The cohort default triangles featured on subsequent slides are segmented by loan program type, FICO score, cosigner status, and school type • Terms and calculations used in the cohort default triangles are defined below: - Repayment Year – The calendar year loans entered r
Slide 54: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.4% 0.8% 0.4% 0.2% 1.5% 0.8% 0.4% 0.4% 0.0% 0.1% 5.2% 1999
Slide 55: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) With Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $6 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.6% 1.0% 0.4% 0.0% 0.2% 1.1% 0.1% 0.0% 0.0%
Slide 56: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Without Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $5 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.2% 0.6% 0.4% 0.4% 3.1% 0.5% 0.8% 0.9% 0.
Slide 57: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Non-Profit Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.4% 0.4% 0.4% 0.2% 1.1% 0.7% 0.3% 0.4% 0.0% 0.1
Slide 58: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) For-Profit Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $0.41 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 11.7% 0.0% 0.0% 10.9% 3.5% 4.4% 0.0% 0.3%
Slide 59: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 740-850(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.4% 0.4% 0.9% 0.9% 0.0% 0.
Slide 60: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 700-739(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 2.2% 0.0% 0.0% 0.0% 0.0% 0.1% 0.
Slide 61: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 670-699(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% 0.6% 0.3% 0.5% 0.3% 2.8% 0.0% 0.5% 0.
Slide 62: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 640-669(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $2 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.5% 0.8% 0.0% 2.9% 2.8% 1.3% 0.
Slide 63: Cohort Default Triangles
Cohort Default Triangles Private Consolidation Loans With Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (1),(2) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 Total 2006 $249 0.0% 0.1% 0.1% 0.5% 0.6% 0.6% 0.4% 0.3% 0.4% 0.4% 0.4% 3.8% 2007 $675 0.0% 0.0% 0.2% 0
Slide 64: Cohort Default Triangles
Cohort Default Triangles DTC With Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (1),(2) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 Total 2004 $10 0.0% 0.0% 0.1% 0.1% 0.4% 1.3% 0.6% 0.6% 0.0% 0.1% 0.0% 0.2% 0.1% 3.5% 2005 $90 0.0% 0.2% 1.2% 0.9% 2.1% 2
Slide 65: Cohort Default Triangles
Cohort Default Triangles DTC Loans, FICO 740-850(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 Total 2004 $5 0.0% 0.0% 0.1% 0.0% 0.0% 0.2% 0.4% 1.0% 0.0% 0.0% 0.0% 0.2% 0.0% 1.8% 2005 $39 0.0% 0.2% 0.7% 1.1%
Slide 66: Cohort Default Triangles
Cohort Default Triangles DTC Loans, FICO 670-699(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 Total 2004 $3 0.0% 0.0% 0.2% 0.9% 0.4% 3.0% 1.2% 1.7% 0.1% 0.5% 0.0% 0.0% 0.0% 8.1% 2005 $25 0.0% 0.4% 2.0% 1.8%
Slide 67: Cohort Default Triangles
Cohort Default Triangles Career Training Loans (1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Total 2003 $389 0.0% 0.6% 1.9% 2.1% 2.3% 1.7% 1.6% 1.2% 0.9% 0.6% 0.4% 0.3% 0.2% 0.1% 14.0% 2004 $510 0.0% 0.5
Slide 68: Navient Corporation Appendix
Navient Corporation Appendix Confidential and proprietary information © 2017 Navient Solutions, LLC. All rights reserved. 68
Slide 69: GAAP Results
GAAP Results (In millions, except per share amounts) Q4 16 Q4 15 2016 2015 Net income $145 $283 $681 $984 EPS $0.48 $0.73 $2.12 $2.58 Operating expenses $246 $235 $951 $918 Provision $102 $120 $429 $581 Average Student Loans $113,151 $125,023 $117,858 $129,224 Confidential and proprietary informatio
Slide 70: Correction of an Immaterial Error in Prior Periods
Correction of an Immaterial Error in Prior Periods Related to FFELP Loan Provision for Loan Losses Quarter Ended Year Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dollars in Millions 2015 2015 2014 Increase to FFELP Loan charge-offs and provision for loan losses1 $5 $20 $19 After-tax reduction to net
Slide 71: Differences between Core Earnings and GAAP
Differences between “Core Earnings” and GAAP Quarters Ended Years Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, “Core Earnings” adjustments to GAAP: 2016 2015 2016 2015 GAAP net income $145 $283 $681 $984 Net impact of derivative accounting (50) (186) (212) (543) Net impact of goodwill and acquired inta
Slide 72: Investor Relations Website
Investor Relations Website www.navient.com/investors www.navient.com/abs • NAVI / SLM student loan trust data (Debt/asset backed securities – NAVI / SLM Student Loan Trusts) - Static pool information – detailed portfolio stratifications by trust as of the cutoff date - Accrued interest factors - Qua
Slide 73: NAVIENT.
NAVIENT.