Navient Corporation (NASDAQ:NAVI) Q1 2023 Earnings Call Transcript

Rick Shane: Thanks guys for taking my questions this morning. So, when we adjust for the significant items in the quarter in terms of provision, we get a quarterly earnings number in the low 80s implicitly for the remainder of the year based upon guidance and what you’ve earned to date. It suggests a run rate of about $0.75 a quarter at the high-end. Should we think about – and again, in the context of GAAP earnings, core earnings, adjusted core earnings, should we think about recurring earnings being in that sort of $0.75 to $0.85 range, is that a good place to be ?

Joe Fisher: So, adjusted core earnings is how we give our guidance and how we have been for several years. So, I think that’s the appropriate way to think about it. And Rick, you’re right, if you’re just taking that $1.06 versus the 3.15 to 3.30 you’re in that 70 to – high $0.70 range depending on the quarter to get to that math. So, that’s an appropriate way to think about it. There is…

Rick Shane : We’re . Sorry, Joe. Go ahead.

Joe Fisher: No, I just said, we’re not going to give quarter-by-quarter guidance, but obviously there is some movement when you think about the third quarter of in-school originations in the way CECL accounting works, but you’re taking larger provisions just on the front end there. So, those are things that you have to consider the cost associated with in-school origin and provisions upfront that you would be taking in the third quarter that you wouldn’t see in other quarters. So, there is some movement from quarter-to-quarter. So, overall, you should be in that range. It’s a decent way to think about it.

Rick Shane: Got it. That’s helpful. Yes. And again, we understand the rationale for the adjusted core, but at the same time just, sort of getting that level set in terms of, again excluding seasonality, the recurring earnings power is a helpful way to look at it too. So, thank you.

Operator: Thank you. And I’m currently showing no further questions at this time. I’d like to hand the call back over to Jen Earyes for closing remarks.

Jen Earyes: Thanks, Shannon. We’d like to thank everyone for joining us on today’s call. Please contact me if you have any other follow-up questions. This concludes today’s call.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.