Slide 1: 4Q 2024 Earnings Call Presentation
4Q 2024 Earnings Call Presentation Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 1
Slide 2: Delivering Value to Shareholders
Delivering Value to Shareholders • Invest in capabilities to grow high-quality • Manage credit and interest rate risk and private education loan originations that help borrowers manage loans generate targeted returns, and explore Maximize the cash Enhance the value opportunities to deepen relationsh
Slide 3: 4Q 2024 and Full Year 2024 Results
“A year ago, we announced three 4Q 2024 and Full Year 2024 Results ambitious strategic actions – outsourcing servicing, divesting our business processing businesses, a non-strategic asset, and a more cost efficient and streamlined structure. We are pleased to say that we achieved our 2024 objectives
Slide 4: Federal Education Loans – Core Earnings Results
Federal Education Loans – Discussion of Results – 4Q24 vs. 4Q23 Core Earnings Results • Net income was $10 million compared to $63 million • Revenue - Net interest income decreased 4Q24 4Q23 FY24 FY23 $53 million primarily due to the maturity of Floor Income hedges, the impact of Revenue (Before Pro
Slide 5: Consumer Lending – Core Earnings Results
• Originated $363 million of Consumer Lending – Private Education Loans in 4Q24, a 63% increase from the year-ago quarter Core Earnings Results - Refinance Loan originations were $322 million vs $191million in 4Q23 - In-school Loan originations were $41 million vs $32 million in 4Q23 4Q24 4Q23 FY24
Slide 6: 4Q 2024 Allowance for Loan Losses
4Q 2024 Allowance for Loan Losses ($ in millions) $32 $6 • Our total provision expense was $836 $7 $45 million in 4Q24 $300 $800 • This consists of: $265 $(80) - $7 million for our FFELP portfolio - $32 million of provision related to the Private Education portfolio, $18 million of which was related
Slide 7: Business Processing – Core Earnings Results
Discussion of Results – 4Q24 vs. 4Q23 Business Processing – • Net loss was $20 million compared to net Core Earnings Results income of $8 million, primarily driven by the $28 million loss as a result of entering into an agreement to sell our government services business resulting in the classificati
Slide 8: 4Q 2024 and Full Year 2024 Total Expenses
4Q 2024 and Full Year 2024 Total Expenses ($ in millions) $900 $825 $800 $80 $719 $25 $700 $43 • We are focused on becoming more $39 efficient across all segments $600 $285 • Operating expenses for the quarter $228 were $146 million $500 • Total expenses for the quarter were $400 $151 million compar
Slide 9: 4Q 2024 Capital Allocation
4Q 2024 Capital Allocation 11% 0.1% 0.0% 0.4% 10.0% 10% 9.8% -0.1% -0.3% 9% • Adjusted Tangible Equity 1 ratio of 10% 8% • We distributed $82 million in 4Q24 to shareholders through dividends and 7% share repurchases • We ended the quarter with 82% of our 6% Total Education Loan Portfolio funded to
Slide 10: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The following information is current as of December 31, 2024 (unless otherwise noted) and should be read in connection with Navient Corporation’s “Navient” Annual Report on 2023 Form 10-K for the year end December 31, 2023 (the “2023 Form 10
Slide 11: Differences Between GAAP and Core Earnings
Differences Between GAAP and Core Earnings Quarters Ended Years Ended Core Earnings adjustments to GAAP: Dec. 31, Dec. 31, 2024 2023 (Dollars in Millions) 2024 2023 GAAP net income (loss) $24 $(28) $131 $228 Net impact of derivative accounting (60) 66 (33) 73 Net impact of goodwill and acquired inta
Slide 12: 4Q 2024 GAAP to Core Earnings
4Q 2024 GAAP to Core Earnings ($ in millions) $30 • We evaluate our business segments $24 on a basis that differs from GAAP $20 • We refer to this different basis as Core Earnings 1 • The two items we remove to result in $10 Core Earnings are: - mark-to-market gains/losses from $0 our use of derivat
Slide 13: Appendix
Appendix Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 13
Slide 14: FFELP Prepayments Accelerate Cash Flow
FFELP Prepayments Accelerate Cash Flow There is a short term lag between when loan prepayments occur and when the cash received is applied to Asset Backed Securitization debt paydowns. • The Impacts of FFELP Loan Prepayments $3,000 - Loan prepayments accelerate loan principal cash flows $2,500 - The
Slide 15: Loan Portfolio Cash Flows Greater than Debt Outstanding
Loan Portfolio Cash Flows Greater than Debt Outstanding • Projected loan portfolio cash flows as of December 31, 2024 - Principally securitization trust distributions • Net interest income • Total projected loan portfolio • Servicing fees undiscounted cash flows after • Return of initial equity repa
Slide 16: Federal Education Loans – Overview
Federal Education Loans – Overview • FFELP portfolio of $31 billion - no newly originated FFELP loans since 2010 ($ in millions) $600 - 97-100% of principal and interest 5-Year Projected Annual FFELP Cash Flows 2 guaranteed by U.S. government • Holding 50 basis points of equity capital against portf
Slide 17: Consumer Lending – Overview
Consumer Lending – Overview • Private Education Loan portfolio of $16 billion - Refinance education loan ($ in millions) originations since 2017 $1,000 5-Year Projected Annual Private Education Cash Flows 2 - In-school loan originations starting in 2019 and the seasoned loan portfolio • Holding equi
Slide 18: Total Education Loan Portfolio – Projected Cash Flows
Total Education Loan Portfolio – • Total Education Loan portfolio of $47 billion, undiscounted projected Projected Cash Flows cash flows are: ($ in millions) - $6.0 billion through end of 2029 $1,500 5-Year Projected Annual Education Portfolio Cash Flows 2 - $11.9 billion generated over 20 years • W
Slide 19: Responsibility to Our Customers and Communities
Responsibility to Our Customers Team engagement, and Communities development and inclusion Supporting education and economic opportunity We are committed to creating a Our education finance solutions help people pursue higher education and successfully workplace where employees are manage their fina
Slide 20: For More Information
For More Information www.navient.com/investors www.navient.com/abs • Environmental Social Governance (ESG) information - Navient Corporate Social Responsibility report • Student loan asset-backed security (ABS) trust data - Static pool information – detailed portfolio stratifications by trust as of
Slide 21: Footnotes
Footnotes 1. Item is a Non-GAAP Financial Measure. In addition to financial results reported on a GAAP basis, Navient also provides certain performance measures which are non-GAAP financial measures. Definitions for the non-GAAP financial measures and reconciliations are provided below and in the bo
Slide 22: Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved.
Confidential and proprietary information © 2025 Navient Solutions, LLC. All rights reserved. 22