Navient earnings surge in second quarter

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Wilmngton-based Navient reported GAAP (generally accepted accounting principles net income of $153 million, compared to $83 million during the same period a year ago.

Earnings were above estimates, according to the Zacks investment service.

Shares rose more than 8 percent on the earnings news.

“Our exceptional second-quarter results reflect continued momentum across all aspects of our business,” said Jack Remondi, CEO. “We also continue to see significant declines in the delinquency rates for both our FFELP and Private Education Loan customers, reflecting the strength of the economy and our commitment to customer success. Additionally, private loan refi originations have provided an attractive lower-cost solution to over 30,000 student-loan borrowers this year.”

The company did reported that adjusted core earnings expenses increased $47million to $240million, primarily due to the release of a $40million reserve in theyear-agoquarter and $6million associated with proxy contest matters ($9million year-to-date). Adjusting for these additional items, expenses were down 2 percent.

Navient provides student loan servicing and other financial services.

The company settled a proxy battlewith one of its investors earlier in the year. but still faces lawsuits over its student loan practices. The company has defended its actions and points to its performance in dealing with problem loans.

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