Page 1

NAVIENT WILMINGTON , Del . , July 27 , 2021 Navient ( Nasdaq : NAVI ) today released its second - quarter 2021 financial results . GAAP net income of $ 185 million ( $ 1.05 diluted earnings per share ) compared to net income of $ 125 million ( $ 0.64 diluted earnings per share ) in the year - ago quarter . Adjusted diluted Core Earnings ( 1 ) per share of $ 0.98 compared to $ 0.91 in the year - ago quarter . Core Earnings ( ¹ ) of $ 165 million ( $ 0.94 diluted Core Earnings per share ) compared to $ 179 million ( $ 0.92 diluted Core Earnings per share ) in the year - ago quarter . OVERALL RESULTS CEO COMMENTARY - " This quarter's solid results reflect Navient's ongoing response to the needs of the borrowers and clients we serve as the nation's economy continues to reopen , " said Jack Remondi , CEO and president . " We continue to exceed our targets across our business . Our optimized balance sheet and high - quality education loan portfolio keep driving value and solidifying the strength of our franchise , and we continue to build our business by originating high - quality private education loans and delivering high - value services to our business processing segment clients . " HIGHLIGHTS COMPARED TO THE YEAR - AGO QUARTER FEDERAL EDUCATION LOANS SEGMENT CONSUMER LENDING SEGMENT BUSINESS PROCESSING SEGMENT CAPITAL FUNDING & LIQUIDITY EXPENSES ● ● ● NAVIENT REPORTS SECOND - QUARTER 2021 FINANCIAL RESULTS ● ● Net income decreased $ 33 million , or 23 % , from $ 146 million to $ 113 million . Net interest income decreased 18 % . FFELP Loan delinquency rate increased from 8.2 % to 8.3 % . Net income increased $ 9 million , or 10 % , from $ 87 million to $ 96 million . Originated $ 1.3 billion of Private Education Refinance Loans . Private Education Loan delinquency rate increased from 2.0 % to 2.6 % . EBITDA ( 1 ) increased $ 32 million , or 400 % , from $ 8 million to $ 40 million , primarily due to revenue earned from contracts to support states . Revenue increased $ 66 million , or 103 % , to $ 130 million . Adjusted tangible equity ratio ( ¹ ) increased to 6.3 % from 3.6 % . Pro forma adjusted tangible equity ratio ( 1 ) increased to 8.0 % from 6.0 % . Repurchased $ 200 million of common shares . $ 300 million repurchase authority remains outstanding . Paid $ 27 million in common stock dividends . Issued $ 2.1 billion in term ABS . Retired $ 692 million of unsecured debt . On July 12 , 2021 , retired an additional $ 750 million of unsecured debt scheduled to mature in 2022 . Adjusted Core Earnings expenses ( ¹ ) increased $ 29 million to $ 244 million . This increase was primarily a result of a $ 35 million increase in expenses in the Business Processing segment . ( 1 ) Item is a non - GAAP financial measure . For a description and reconciliation , see " Non - GAAP Financial Measures " on pages 18 - 28 .