Exhibit 99.1

NAVIENT CORPORATION

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

On September 19, 2024, Navient Corporation (“Navient”) completed the sale of its equity interests in Xtend Healthcare, LLC, which comprised Navient’s Healthcare Services business in Navient’s Business Processing segment, to Coding Solutions Acquisition, Inc. (“CorroHealth”) for $369 million ($365 million of total consideration, plus an estimated $4 million of working capital and other adjustments to the contractual price) (the “Healthcare Services sale transaction”).

 

The following unaudited pro forma condensed consolidated balance sheet as of June 30, 2024, is presented as if the Healthcare Services sale transaction had occurred on June 30, 2024.

 

The unaudited pro forma condensed consolidated statements of income for the year ended December 31, 2023, and the six months ended June 30, 2024, are presented as if the Healthcare Services sale transaction had occurred on January 1, 2023. The estimated gain on sale in connection with the Healthcare Services sale transaction is reflected in the unaudited pro forma condensed consolidated balance sheet within equity. The estimated gain on sale of $216 million is not reflected in the unaudited pro forma condensed consolidated statements of income as it does not have a continuing impact on Navient’s results.

 

The unaudited pro forma condensed consolidated financial information has been prepared from Navient's historical accounting records and, in accordance with Article 11 of SEC Regulation S-X, is subject to the assumptions and adjustments described in the accompanying notes. These assumptions and adjustments are based on information presently available. Actual adjustments may differ materially from the information presented. The unaudited pro forma condensed consolidated financial statements are based on the historical financial statements of Navient for each period presented and in the opinion of Navient management, all adjustments, and disclosures necessary for a fair presentation of the pro forma data have been made.

 

The unaudited pro forma condensed consolidated financial information includes pro forma adjustments which reflect transactions and events that (a) are directly attributable to the Healthcare Services sale transaction, (b) are factually supportable and (c) with respect to the statements of income, have a continuing impact on consolidated results. The pro forma adjustments are described in the accompanying notes to the unaudited pro forma condensed consolidated financial statements. The unaudited pro forma condensed consolidated financial information does not reflect future events that may occur after the Healthcare Services sale transaction, including any potential future cost savings that may be achieved.

 

These unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the results of operations or financial condition that would have been achieved had events reflected been completed as of the dates indicated or of the results that may be obtained in the future. These unaudited pro forma condensed consolidated financial statements and the notes thereto should be read together with Navient’s audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2023, and Management’s Discussion and Analysis included in Navient’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as Navient’s unaudited consolidated financial statements and the notes thereto as of and for the six months ended June 30, 2024, and Management’s Discussion and Analysis included in Navient’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

		As				Pro Forma
		Reported				Adjustments					Pro Forma
Assets
FFELP Loans		$	32,940			$	-				$	32,940
Private Education Loans			16,238				-					16,238
Investments			132				-					132
Cash and cash equivalents			1,088				362		(A)			1,450
Restricted cash and cash equivalents			2,918				-					2,918
Goodwill and acquired intangible assets, net			690				(113	)	(B)			577
Other assets			2,616				(41	)	(B)			2,575
Total assets		$	56,622			$	208				$	56,830
Liabilities
Short-term borrowings		$	5,326			$	-				$	5,326
Long-term borrowings			47,545				-					47,545
Other liabilities			1,003				42		(B) (C)			1,045
Total liabilities			53,874				42					53,916
Equity
Total equity			2,748				166		(D)			2,914
Total liabilities and equity		$	56,622			$	208				$	56,830

		As				Pro Forma
		Reported				Adjustments					Pro Forma
Total interest income		$	2,000			$	-				$	2,000
Total interest expense			1,718				-					1,718
Net interest income			282				-					282
Less: provisions for loan losses			26				-					26
Net interest income after provisions for loan losses			256				-					256
Other income (loss):
Servicing revenue			35				-					35
Asset recovery and business processing revenue			158				(60	)	(E)			98
Other income			13				-					13
Gains (losses) on derivative and hedging activities, net			46				-					46
Total other income			252				(60	)				192
Expenses:
Salaries and benefits			188				(38	)	(E)			150
Other operating expenses			162				(9	)	(E)			153
Total operating expenses			350				(47	)				303
Goodwill and acquired intangible asset impairment and amortization expense			5				(2	)	(E)			3
Restructuring/other reorganization expenses			17				-		(E)			17
Total expenses			372				(49	)				323
Income before income tax expense			136				(11	)				125
Income tax expense			27				(3	)	(F)			24
Net income		$	109			$	(8	)			$	101
Per Share Amounts:
Basic earnings per share		$	0.98								$	0.90
Average common shares outstanding			112									112
Diluted earnings per share		$	0.97								$	0.89
Average common and common equivalent shares outstanding			113									113

(in millions)
Cash received (net of selling and other expenses)		$	362
Less:  Carrying value in Healthcare Services business			146
Pro forma gain before income tax expense			216
Less:  Income tax expense			50
Pro forma net gain on sale of our Healthcare Services business		$	166

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