Navient (NAVI) 28 Jul 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Navient Second Quarter 2021 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Nathan Rutledge. Sir, please go ahead.

Thanks, Lawrence. to quarter welcome earnings and morning Navient’s XXXX second call. Good our today Joe are me CEO Jack With Remondi, and CFO. Fisher, our After open will remarks, call prepared questions. up for their the we

discussion begin, the factors, results COVID-XX will and to in including, presentation. from those disclosed information This a business current Actual future on our associated in is about variety we the due expectations the impact. duration Before mind of the other as maybe other magnitude different materially contain expectations, economic with of forward-looking keep predictions, among statements could based management’s that here. uncertainties the our date pandemic things, and be related severity, of of and the

and in to financial been controls that As the factors SEC. reported on Listeners financial travel filings maintain the books controls other previously, restrictions of over should place those refer our the or ability not reporting Form the put and negatively close affected XX-K our systems, internal company’s our and disclosure policies have reporting work discussion procedures. have home with and to from

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

at earnings turn of This a non-GAAP can supplemental the with second to the Jack. is Our GAAP GAAP results posted and call description Thank reconciliation disclosure. page full now, the Investors XXXX our navient.com. And quarter to financial I measures over be in on you. found will

in joining your and morning, today Good for Navient. and interest everyone Nathan. Thanks, us you for thank

business we this and results business to and executed our created quarter for exceeded Our investors. our clients, deliver as continues our exceptional business value. plan our expectations teammates segment Each model

quarter. our for results were to loan private in adjusted delivered in education over $XXX Solutions our of and net of and demand lending $X.XX, margins quarter’s an strong delivering continued share total, increase core we income our clients services core driven segment. state In and year earnings strength products, earned Processing This X% ago segments, our in stable million per by Business the

focus loan originations, and on to growing efficiency. improving continue business revenue and financing our operating We processing increasing efforts

$X.X pandemic $XXX loans, private we million ago education in year billion impacted in quarter. from a originated the up quarter, This

We are new also in-school as underway. for this optimistic season product lending about for demand peak is

longer. above to performance As for our the Demand refi also throughout maintain least committed and forecast our billion at Solutions remained strong Processing a our allowed $X.X we result, as in in-school us efficiency of are remained originations expectations in Business and to combined Revenue quarter. XXXX. our us pandemic-related with over revenue from project the the the an these of broaden have continue capabilities to clients our to end. allowed These we technology-enhanced decline awareness to assignments expect and projects as balance projects of year work our come significantly the also COVID-related to

and the borrowers loan FFELP performance continue very to education show payment private economy Our reopens. strong as

and rates at pre-pandemic Forbearance or levels delinquency near remain are historic lows. rates near

offer this financial continues for the difficulty, While experiencing payment request we to for to continue assistance relief fall. customers

of the loan financial wind have contributed also stimulus include losses portfolios our margins the economic the outlook our loan for current reserves student and the in impact Our down from results. to Net interest potential programs. various

our advance funding highest allow to through at expense new to funding both the that lower us unsecured designs and debt, We These portfolios. our in cost. include new our of and transactions the continue rates reduce interest level the facilities cost reduce source cost higher of funding lower of innovative facilities execution spreads,

last Our years. X savings millions actions this interest in of have area of delivered the hundreds in

reduce incorporation gains allowed This experience, solutions outcomes. costs us technology-enabled to our increased automation has efficiency We of have improve intelligence. and also customer building artificial focus and through operating improve delivered on

experience our customer focus improve efficiency, to for and Our a financing operating us. efforts remains primary and

capital attractive another investors. increase is Our of deliver volatile generated value exceed targeted capital The challenging for exceptional how we share ratios pandemic deliver forecast, our a repurchases. example our and of and ahead This the our very dividend yet to environment. original create results financial an have plan for created and

Our our and business services allowed maintaining infrastructure a our changing Navient while to the environment, navigate challenging plan, the support challenges needed and focus and growth. to team on with – constantly clients to respond customers and and

optimistic the each year, As for we I exceptional to the to our second look very continue will that I of results half remain of deliver stakeholders.

quarter, agility I and their and Joe. the I for review now service a effort the would And attention. turn will over call thank detailed I to the Thank Joe colleagues you clients. to our you. for to Thank to like of over my for your Before call commitment, turn continued customers

and you, for today’s Navient. Thank Jack interest thank in everyone to on you call your

call remarks, which presentation, review will website quarter company’s the found prepared referencing my Investors be During will section. for in be I can the XXXX. second results the earnings on the I

second is Our results our original Slide compared outlook quarter XXXX X. on for to provided

of on targets the exceed beginning provided at our currently of all are to We pace original the year.

$X.XX the of of compared increasing XX% to guidance. first we $X.XX, half strong updated and the outlook, range our per an core guidance of increase a range adjusted are to original result a share to earnings over of our As

our billion million to of interest of and rate repurchases of excludes repurchases lows, regulatory of the in quarter, $X.XX. and loans, debt favorable from a private remaining the education the Charge-offs XX% the environment form quarter, authority, remain $XXX include reflects dividends. of Slide returned utilizing announced beginning and includes BPS capital core and adjusted in shareholders on achieved originated margin at X, outlook strengthened million. restructuring $XXX of Our EPS highlights GAAP $X.XX position EBITDA FFELP the on both and Key share and EPS private costs, historic repurchase education $X.X loans

year X%. net portfolio year-over-year When levels. X.X%, favorable interest quarter. ongoing compared basis for year portfolio the a interest remained expected funding from with historically from Let’s certain from move was on interest the rate year beginning flat $XX XX income FFELP to despite decline on X, This first federal following at education of prior X. and costs. Total event, prior to XXXX the floor and income repayment. decline transition resets charge-offs was in $XXX at at annual XX reduced improvement the Net that the to The million segment in remained and continues environment reporting, basis loans delinquency to compared loans on ago declined remain July this adjusting occurred margin by flat points million quarter. to the Slide stable while points the have low back rates borrowers benefit at

declined efficiencies. as borrowers towards we decreases transition a operating operational activities expected pre-pandemic more repaying in on of asset the Fee operating in volume, levels result primarily As certain income improvements these into expect recovery impact COVID-XX and statuses, to expenses levels. in this segment of revert and

lease for education largely total Now, quarter. was now refi let’s The guided interest originated private high-quality to education accounts million loans largely of the Lending XX turn expected and ago a three basis in Consumer basis points lower Lending Consumer third, is driven net and increase the the segment. the in provision $X components: portfolio; million high-quality connection legacy our year $X $XX the within sale and is the our decrease in Slide for a loans above second, in than segment. a shift X first, which our of a The product XXX $XX to $X.X range loans; XX% in portfolio, our toward margin total million points of of by of comprised quarter billion of million with $X losses negative the million private related newly quarter,

reflects to negative impact this the we the improvement currently to end to While have the relief various are stimulus current the related uncertainty the benefits in portfolio potential an year. forecasted conditions, end of our payment seen that and economic allowance from

repayment, we we As borrowers to adequately the given of are quality confident reserved our high transition continue well-seasoned that and portfolio. credit feel to

review and original due and to efforts increase allowed benefits, existing Leveraging increase from vaccine prior from services. Let’s as and targets unemployment to well segment. infrastructure million of our achieve administration tracing in an EBITDA Processing margins supporting our is us and $XX revenue states their our The business X to to contact continue provide to largely revenue Business in the processing year XX%. our exceed EBITDA traditional as technology Slide

begin million total which led down, expect As wind and expenses. in and contribute we expenses for in contracts these growth the expenses original of our to The the growth operating the in in in see beginning ratio to quarter set a a in decline the a of associated the is company proportion XX% for this at segment as increased the revenue businesses economy quarter, increase overall in revenue even to our reopens to revenue. overall efficiency larger The our resulted outperforming year $XX target the company.

is activity Let’s turn X. to that highlighted allocation our on financing and capital Slide

to the a cash $XX along debt unsecured our million. During $XX existing that loss second set we an in repurchase result we flows debt unsecured footprint transactions and this raised operating quarter, utilized from reduce $XXX repurchase our year, by resulting the loan with to sale our earlier from issuance cash million, unsecured in of will expire XX, of was million retired in of an Subsequent third $XXX million additional the in January to which results XXXX estimated quarter. debt of quarter on loss July

debt of remainder due have reduced XXXX existing to billion. no under total maturities have XXXX in We our unsecured the $X and for

$XX.XX, million while we declined to During our average losses improving the ATE repurchased $XXX the ratio time. derivative negative in related passage XX.X The quarter, million of mark-to-market to to at an X% mainly natural price to accounting due all quarter, by the cumulative shares of X.X%.

zero X.X%. our which temporary these ratio will losses, mature, mark-to-market to adjusted contracts tangible equity as reverse is Excluding

do remainder $XXX for occurred of the million a legacy the resulting first million. guidance sales larger year. the This loan We in million in execute a private of authority expect $X.X not year. any the sold forecast quarter, of of over end the to the follow-on gain-on-sale We the we In of sale our quarter. $XX sale loan was the that remaining at additional related to the education of remainder loans,

ABS. the strong. $X.X billion of term-funded both to be we demand FFELP The for ABS During private continues quarter, and issued

ability most XX% was previous private total Our managing align priced education the our while demonstrate better education facilities, cash improved July or flow better points our debt financing recent cost projections of combined funds loan our XX of to our transactions, on transaction XX than to issuance with the These lower to maturity tighter basis in profile was Xx portfolio. oversubscribed. refi that efficiency our and

team to we in net results quarter Navient second to the quarter our million of $X.XX. the company exceed recorded your $XXX position, with quarter you capital and from compared or to repurchases income needs customers. of GAAP of of the earnings million or for of quarter’s maintain this of The open share challenges our authority GAAP share In questions. time. both for income XXXX results the XXXX. us to outperformance net second original $XXX achieve in $X.XX the targets, And our share per year-to-date meet and Slide I $XXX positions million of strong across of Turning call the $X.XX per and on XX, continued $X.XX share demonstrate the well dedication remaining will utilize for full the per for remainder all Thank now summary,

the ask And question from from Instructions] of [Operator Barclays. line Please first DeVries Mark comes question. you your

are more Joe, about kind once end? bit payment payment of a end holidays. delinquency of holidays what you just talk you. ultimate expectations Could Thank mentioned you contemplating reserves trends and your losses those little the for Yes.

Sure.

as think towards back of I on So the coming portfolio FFELP them levels. pre-pandemic

So our about with charge-offs, anywhere the the when and total beginning and guided forbearance XX% XX%, of XX% guidance year, think basis call delinquencies ranges, points. we around given had towards the XX at similar it, between you the

have For go there mix to book. pre-pandemic our if of you refi to in that the back is a you private levels, portfolio, factor

think more I loans, total of So expect on for normalized delinquency a which and levels, low I very low on the in mix the then would the low getting mid that into the it’s again, would quality – a delinquency, environment charge-off are think, depending from range. be range. to I contingent And to refi high the you’re mix, but standpoint, X% X%

loans. the be going this at these quality refi and get ultimately, ends you private function X.X% we So mix year, improve and stimulus book. repayment more off that back we were outlook point think to normalized would just options that to refi to some overall this for will lot X%. A at of of our of the But our guidance but we continue here of more a is and levels, the at as the to our relief originate beginning would overall

mean kind just tracking optimism applications? alluded enter you to And of the your I peak is getting been? about you this that a how originations helpful. so, Are you your as based kind what have already of season. in-school read on that, That’s relative expectations Okay. to Jack, on then, might If

Sure.

application peak July really the in second flow yes, starts pick So to through August. and half up moves of

partnerships And side wait. of we’re the that some process And of various so in a enhancements equation. product is stronger and we’ve happens what made still we coming trends in seeing. certifications. application together school we we we launched, think are the different nicely. at I is of seeing for that look initiatives all optimistic measures in place last piece in But year, flow, and It then, about approvals I where the course, to this marketing we’re early need terms that still. But that applications, some we waiting the right are completed that now, is have think we early we’re just There are stand this that

Okay. expectations product? the returns your your in-school loans And versus are on refi for the what

that to lower end about at the of high and in-school at between range. talking been we’ve higher the mid returns two, So the the ROE refi end

Okay. basis? On a loss adjusted

Yes.

great. Okay, you. Thank Alright.

question Rick of the Shane JPMorgan. line Your next from comes from

open. is line Your

for my this morning taking guys. Thanks morning. Good questions

of look can in how think declines from that we when the when Business be? expense for clear you much You been the the what that of about guys so structure the in there, efficiency cost segment. variable, that start versus government to the Processing operating about expenses is think way have operating or about during services the year business potential fixed part would I’m we the curious structure, ratio offsets revenues at

Sure.

unemployment demand helping about to area, out we work the message related respond up sign states were kind really and these were some pandemic insurance the vaccination, to of tracing did to where an to states it, to doing as claims, to such that work, And most ramp up our helping then recently, really rising take contact of type how hold. ability get began So process and contracts go, example how as of information. get rapidly in

Of of incremental course, all down. point, variable expense. eventually We programs though, with receive as responded wind will these that to your

most technology some But temporary play. issues that and there with solutions. we to part, temporary had into responded we hardware So expense workers was related certainly bring for the

During to this to we over frame, hired well time people X,XXX respond these needs.

in decline winds We’re to down categories somewhere expect those continue around and to X,XXX work the down right balance year. as the now over this those of

it. Got

very it for me. thank That’s Okay, you much.

question John from the next Your from of Hecht comes line Jefferies.

open. line is Your

competitive characterize is is define on lending competitive side? environment guys there. of formerly you Good far you question, process level some talk morning, high company, of Maybe guys so private environment are the kind share. How gaining sort kind seems of guys. like about the it now or do Maybe Wells a public that the

main they with of we obviously, we of that in-schools the set focus private two in, – in a the is points. space. have product in refi side equation origination. the have are different on say, One So Then lending, the competitors

that a rate our products loans certainly no Department interest for share. I think speak themselves. It and results the now are Education right equation in strong. rapidly are of Demand originations muted been the capability the the that kind with payments has and is our by outstanding our in refi our capacity, able grow X% fact been required. demonstrated that take We’ve side of to area of for at

and it the two as or with expect from is one those So see into will we people itself bit borrowers and side loans. But we in with that either country. program. we the come demand loans seasonal, on fully increase. number repayment, education you builds – it originator we’re the number we back the in-school dynamic products coming refi start a market for the equation, concentration private differently. And a higher very seeing of In the demand expect of It’s are as operates that refi little

very originating the began we are loans, we students time. first for who when focused on borrowing and families borrowers, So are much

each loans opportunity subsequent to so And capture make to then subsequent you them. year, the academic

And we about fully But expand each that about products, and excited process a launched of share seasonality the so were are when we year excited It’s volume. as from and targeted on origination flow exit the slower – the certainly, opportunity increasing than to in-school the because with will you a we be build going approach. of expect we because forward. more that take able origination market we the your of we the banks of number business,

Okay. helpful. And very with update the then on case That’s any DOE?

Do or... CFPB you mean the

apologize. CFPB. sorry, I’m Yes, the I

Yes.

So that very to court slow case continues its the way process. slow very, – through just grind

this All have and has we’re schedule to to to get court. rulings judge have of next Depositions game in the begin a kind rounds at the on we stage point discovery in where and been completed. to of of hopefully been the day get the waiting our taken,

As repayment – – believe all – to different exceptional. track acknowledged months, have information several will CFPB out through their in we’ve made, submitted customers process the record programs. during and just support them fact, point I support that tell claims did, last that the is Navient the various that over the the that the witnesses claims has that also here they our income-driven about been they said our the discovery the

of highest in enrolled in We programs servicer country. student repayment income-based the public of forgiveness outside of loan any the percentage have borrowers like the specialty programs,

this evidence the eager and able and day to our move have present hopefully we’re court from on So be case. to in

update. guys for the very Thanks much Great.

Family line from Lee Cooperman of Omega Your question from Office. next the comes

line Your is open.

really you management. the you year. million really hundred capital already about questions And that typical two in one, I there unusual normalized the three couple $XXX you very And bought you $XXX what have $XXX right? think are your million, in much. typical what a so very a million? I view You of bumped But second Number We’re two, actual price lastly have But and And this over shares you or a related is towards available repurchase. dividend a have do years not outstanding you money you at dividend at Thank normal to do have year, environment. on know quarter? end do the Number year, directed think number increase? earn back? would earnings? of one? your the stock for year, think a do you be of of the do importantly, left were to buy X a million, is what could you secondary repurchase stock common would because the what

becomes goes stock repurchase less the As up, attractive.

to likely likely want stock of us what share Thank would dividend You make stock more you. a – with on a repurchase? price increase dividend the view more than

Sure.

first answer So I’ll your question.

In the it CSCs year, towards $XXX terms $XXX share forward, we repurchases million going the share question ending guided as quarter, at XXXX. about million. you had repurchases for of And of beginning the was in remember, your the of planned

With half the capital for this of $XXX we back about that got We’ve of that million increased that activities $XXX financing and loan management sales the done, to we year. and million. have left

legacy years, guidance try over the as return that portfolio. manage haven’t think occurred few with We our to natural the amortization what’s XXXX. given of we just you for and last our But about natural

off flows shares period. of capital decline the portfolio, anticipate portfolio, of and you near repurchase would into any come that acceleration So as a absent available natural that to that’s of cash amount would declining

anticipate decisions $XXX would standpoint, reauthorization Board, I this we’re those when will up but that taken obviously the of that, year-over-year, announce the will So be publicly and through million. we from that that would with decline

we a earnings And increase of earnings this selling I those to to did to Lee, comments, – accelerated as Joe’s a at our Yes. we that accelerating and shares made the accelerate – very allow, repurchases. market asset Navient think strong circumstances loans, XX% facts add for repurchased have that were the created, assets of now original creation company. take demand Those for using advantage we – of types on share since outstanding decisions year, the was – but are the since of and

to very a repurchase that a obviously, Joe returning back described, and program So that strong capital, shareholders. just to commitment

PE Now when extent us. alternative businesses for obviously dividend split have book ratios share comes to would the peers to into between the industry. look repurchases in And origination and say, faster, the distributions still our trading of at the consideration I great this we company, our we that can here. grow as we certainly still certainly we that’s the a are values, based price below on

we are to look building that company we VPS so in through able the are what are and And of price. recognized revenue do growth, as to drive through to the yet earnings perhaps fully we segment at value be the share origination strong the factors that

repurchase preferred to So, are you you be saying a stock what that current prices? are will saying? the near anywhere that Is dividend bump

Yes.

you to what you Do happen average Okay. program? the life over paid shares the handy the price the of have of for XX% the repurchase,

average our been has price XXXX, Since $XX.XX. share

Got it.

Good the Thank you. you. Thank answers. appreciate Okay. I luck.

Thank you.

Your [Operator comes of from from next the line Moshe Orenbuch Credit Instructions] Suisse. question

open. Your is line

Jack you of next Can variability the that have less kind several you had net you rates summarize the an little about margin the of all the in and and of issues? business expected, for over quarters – Thanks. than increase to a probably us? talk of interest but trajectory given a ability kind just Joe, and Great. mix any little bit

talk So, I about lending the separately. will consumer FFELP and

interest environment FFELP fairly So, next rate quarters. several on over think perspective, yield rates, the the stable from near-term, least continue from here to the will in seeing at benefit and look forward out the we are if you this curve, I you

shouldn’t half the movements again, here the year anticipate of half than FFELP volatility net margin. on have Moshe, – other. first one is mechanics way the but second don’t or of little Typically, that the because the a very program, know, large of you just shouldn’t I be interest FFELP the much the So, as the of better year,

be the portfolio. a really to side, mix of going it’s consumer the function On of lending the

a the But are originated So, decline from year-to-date, we our expectations the a that. margin. refi as perspective, we the of we mix even though loans. to going interest of – move greater through billion hold a are of Obviously, continued here see capital we towards net $X X% book, in capital you have exceeding refi against

Jack mentioned, mid return. As we to talk high-teens about

So, the very we but continue net the segment refi margin should mix view as Consumer from our to as the interest shifts decline it portfolio. attractive, just on Lending legacy book to our

I Like it. standpoint, unencumbered be kind and Thanks. ability to tighter going taking or loans net Got to had incremental? amount are mentioned that got still. funding And enhance of better think, of from are fair flow? cash interest either Joe, spreads steps of kind any income – there a a You you to anything private what’s any you the do have

said Certainly to no there something continue first And have the our that I I half evaluate in we financing sales every the guidance, single been is the of look day, planned busy we year. at but options. through very

We unencumbered well have another of rest over billion – loans, collateralization the billion the of on $XXX of book. FFELP unencumbered private of as our as loans, on million $X.X our $X

have we capacity and at of as make look improve are better the ways our we those that also all to So, facilities financing just things that and there. use

on. it something So, loan guidance, terms in of planned we our definitely have is But sales. no focused

Great.

a that loans And the come what tell have to capital of about think target. kind you Anyway you billion different needs those you mentioned do is expected than me, origination the proportion just us X%? from And in-school lastly $X.X the on can program? Okay. of for

And you to make allocations refi the in-school of refi. income when the will is in-school risks two degree, know graduate the an products, produce student the answers. between principal So, we loan. are, cover two – for capital those the In and does definitely two you have difference refi sufficient different your the space, and loans loan, the course,

so portfolios profile smaller. and And credit delinquency those are the defaults significantly the risk of and ultimate

will in-school about in off, when season’s talk more refi hold cover October to we the going are between results. We we mix and peak and

much. very Thanks Okay.

line of KBW. Sanjay question from next the Your comes from Sakhrani

Your line open. is

could servicing their your not Thanks. I renew on their of you update I peers us an contract. backed one sort if out would contract know of was the wondering because with give contract or of

could about you that little Jack? maybe talk a just So, bit,

So, the have servicing that of perform under we Department contract continue Ed. to the we with

program. X.X are currently We that under servicing million accounts

all like to will But in And help contract, assist understand plans way expires we Ed contracts, Department how process. one what anything of the here. December. working of or too are that new we it’s early be can the other with the say to and probably the – in Our their

some are loan number go-forward such. for number But there? think to Thanks. the on Obviously, there and over higher today sales of just then a what had we question And I inside to it. roughly, this numbers can to you you Joe, guided Got just probably the pre-COVID, that takes back sort is in If maybe, $X you a terms the what of is and puts in guys the steady-state go have year. follow-up, earnings. are that Lee about a excluding think number the sort of the range core of $X we and speak basis,

Yes.

$X.XX from the ask the going So benefit did we And going guidance to about got not have loan year-to-date, give sales. I NIM about here. am forward. XXXX Moshe

in FFELP. certainly, that inflection have color consumer But seeing think lending growth to in I getting net interest we been the work closer and income you got on. and have you So, point, to in been have there enough closer

about said we very XXXX past So, and this we confident guidance, rate in without environment. have giving the feel what the interest outlook given

in interest much margin net don’t there. Federal our Loans Education I expect As I segment the volatility said, FFELP and

that to look put to going forward we efficiency are well. We achieve the as ratios

that going are we to something that’s continue to monitor. So,

in of to these, call plug pandemic states these continue But you going a legacy expand going to think give And the to feel or, that fairly start revenue a hold, the little something what early but that wind shape the that’s business to with the see driver pickup one-time as what into are you too BPS is we XXXX that to and the will something we your versus the as I do work BPS recovery models. we that like that takes So, the segment contract as that’s to see related biggest be next just confident year. contracts work, to programs into there the not usual can look it’s those continue to does guidance. to it, hopefully, various continues down on

one, on competitors it. one maybe contemplate the in-school take share think coming you I you it’s bit or the I you that feel market, share a of big big that? final Got fair – to just And out early mean little one originations, market of like do can the do of your guys with guess

I there in of that play a at here is factors variety are enrolled think programs. terms in students Well, of

competitors, the marketplace we pretty excited negatively loans the that excited in-school focus typically focused here. are we are were payments schools We about amortizing. presents for about than yes, opportunity narrower have which a they school, most And on with us. that heavy heavy or are of on families encouraging we opportunity those borrowers, are this so originators But not component, make without the in are influence what on types while to

you. Thank

You’re welcome.

question the Arren Cyganovich line Citi. next comes Your from from of

line open. Your is

anything payment does bit a loan period your standpoint? business The reserving potentially six pushed a that little change run you. and off affect from it How Federal months. Thank be or another during that – suspension does allowance that flow could out

Yes.

and – currently – end is at set there extending date now currently projected are is the certainly, for So, that. various recommendations September XX, the

and both sufficient and is so is that have think the a other once important is making participants expectations date process most thing for of set is there set, the clear timing. I that borrowers that picked sure

through been a equation. components areas. But before, very, of have There the demand the to to never things to how respond certainly does large, to make this this in a refi make in help components impact like payments of to think have but impact on having with we two have We not really is we available resources we that benefit strong payments has would credit the customers It certainly How the them side it bigger us other consumer product. plan we transition. on smaller for make something would is one and have consumers very it. – They business? a

rate As the the compete not long on side zero, as refi we rate that the obviously of with that’s equation. interest a is

so outstanding to we debt off, who seeing decides holding borrowers that end. extension the will when definitely are loans, are balance looking their And of portion refinance at least and their Congress Department the on until

Okay. That’s Thanks. helpful.

in there the Government I of breakdown it it am side assuming related on pretty revenues, level back increases. nicely EPS When Services is COVID or of programs year-over-year. the am the we business the that looking up to I kind is type at kind off, Slide these the healthcare, increase On the of But think to that’s X, shows when about non-COVID do gets some related? the QX we of falling pandemic talk of ‘XX that’s also

services pandemic-related and government services increase the here. related of is majority healthcare in So, to both the

the groups hopefully, just a to of going hospitals is So, as going of But for as and non-pandemic good across processing our reopen can just obviously, begin related as ‘XX, contracts, on too, back lead business additional have states and some help focus here think the items. to well natural to the that’s we QX sort various work to starting good upon, here, country, build reopening point. that that done will we I

all as benefit of collections, for those I think to that’s healthcare going things. state the services tolling, just our of opening economy well as parking,

back So, that look we upon over work QX we build year. but have that to to done going would I the the last think good certainly baseline, with is a ‘XX

The guess and numbers recent to something that. able potentially in be booster worsening of for? of you Is a the might on you further with shot that COVID that necessary, work weeks I – have that out be been discussion additional follow-up extend to And might that just that is periods contemplating?

does potential create be, it’s to some there, the yes. first My would answer – extent hope is, I it but needed. not it And

Thank it. you. Got

you. Thank

back There you. are no more phone Nathan, questions. to

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

today’s concludes call. This conference

now disconnect. may You