Navient Corporation (NASDAQ:NAVI) Q3 2024 Results Conference Call October 30, 2024 8:00 AM ET

Company Participants

Jen Earyes - IR
David Yowan - CEO
Joe Fisher - CFO

Conference Call Participants

Bill Ryan - Seaport Research Partners
Sanjay Sakhrani - KBW
Rick Shane - JPMorgan
Mark DeVries - Deutsche Bank
Terry Ma - Barclays
Moshe Orenbuch - TD Cowen
Nate Richam - Bank of America
Jeff Adelson - Morgan Stanley
Ryan Shelly - Bank of America

Operator

Good day, and thank you for standing by. Welcome to the Navient Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [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. Good morning, and welcome to Navient's earnings call for the third quarter of 2024. With me today are David Yowan, Navient's CEO; and Joe Fisher, Navient's CFO. After their prepared remarks, we will open up the call for questions. A presentation accompanies today's discussion, which you can find on navient.com/investors.

Before we begin, keep in mind our discussion will contain predictions, expectations, forward-looking statements, and other information about our businesses based on management's current expectations as of the date of this presentation.

Actual results in the future may be materially different from those discussed here. This could be due to a variety of factors. Listeners should refer to the discussion of those factors on the company's Form 10-K and other filings with the SEC.

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

Our GAAP results, description of our non-GAAP financial measures, and the reconciliation of core earnings to GAAP results can be found in Navient's Q3 2024 earnings release, which is posted on our website.

Thank you. And I now will turn the call over to Dave.

David Yowan

Thanks, Jen. Good morning, everyone. Thank you for joining the call and for your interest in Navient. The third quarter was highly productive along our transformation journey. Our results reflect healthy loan origination growth, strong expense discipline, lower levels of FFELP prepayments, and includes several other significant items.

As a result, we are more than doubling our targeted share repurchases in the fourth quarter compared to the third quarter. We variablized a significant part of our expense base by outsourcing loan servicing to a third party. We recently completed the borrower conversion and are working to ensure a seamless transition for borrowers.