Navient Corp (NAVI) 2025 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to Navient first-quarter 2025 earnings call. (Operator Instructions)

您好，感謝您的支持。歡迎參加 Navient 2025 年第一季財報電話會議。（操作員指示）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jen Earyes, Head of Investor Relations. Please go ahead.

請注意，今天的會議正在錄音。現在，我想將會議交給今天的第一位發言者，投資者關係主管 Jen Earyes。請繼續。

Hello, good morning, and welcome to Navient earnings call for the first quarter of 2025. With me today are David Yowan, Navient CEO, and Joe Fisher, Navient CFO. After their prepared remarks, we will open up the call for questions. A presentation accompanies today's discussion, which you can find on navient.com/investors.

大家好，早安，歡迎參加 Navient 2025 年第一季財報電話會議。今天與我一起的有 Navient 執行長 David Yowan 和 Navient 財務長 Joe Fisher。在他們發表完準備好的發言後，我們將開始提問。今天的討論附有演示文稿，您可以在 navient.com/investors 上找到。

Before we begin, keep in mind our discussion will contain predictions, expectations, forward-looking statements, and other information about our business that is based on management's current expectations as of the date of this presentation. Actual results in the future may be materially different from those discussed here. This could be due to a variety of factors. Listeners should refer to those factors in a discussion of them on the company's Form 10-K and other filings with the SEC.

在我們開始之前，請記住我們的討論將包含預測、期望、前瞻性陳述以及有關我們業務的其他信息，這些信息基於管理層截至本演示文稿發布之日的當前期望。未來的實際結果可能與此處討論的結果有重大差異。這可能由多種因素造成。聽眾在討論該公司的 10-K 表格和向美國證券交易委員會提交的其他文件中提到的這些因素時應該參考這些因素。

During this conference call, we will refer to non-GAAP financial measures, including core earnings, adjusted tangible equity ratio, and various other non-GAAP financial measures that are derived from core earnings. Our GAAP results, description of our non-GAAP financial measures, and the reconciliation of core earnings to GAAP results can be found in Navient's first quarter 2025 earnings release, which is posted on our website.

在本次電話會議中，我們將參考非公認會計準則財務指標，包括核心收益、調整後的有形權益比率以及源自核心收益的其他各種非公認會計準則財務指標。我們的 GAAP 結果、非 GAAP 財務指標的描述以及核心收益與 GAAP 結果的對帳可在 Navient 的 2025 年第一季度收益報告中找到，該報告已發佈在我們網站上。

Thank you, and I now will turn the call over to David.

謝謝，現在我將把電話轉給大衛。

Thanks, Jen. Good morning, everyone. Thank you for joining the call and for your interest in Navient. This morning, we reported results that reflect strong loan growth and strong performance against most of our key business drivers. Joe will take you through the details in a few minutes. Let me take a few minutes to step back and ground you in where we came from, where we are, and where we are headed.

謝謝，Jen。大家早安。感謝您參加電話會議並對 Navient 感興趣。今天上午，我們報告的業績反映了強勁的貸款成長和大多數關鍵業務驅動因素的強勁表現。喬將在幾分鐘內向您介紹詳細資訊。請容許我花幾分鐘回顧一下，讓你們了解我們來自哪裡、我們在哪裡、我們要去哪裡。

2024 was a year of great transformation. We announced and then executed on all the steps we promised, divestiture of our BPS businesses, the outsourcing of loan servicing, and the beginning of deep cost reductions that those moves enabled. 2025 is the year where we will achieve more of the cost reductions enabled by the steps we took in 2024 and focus on how best to deploy our capital to grow our earnest business and return capital to shareholders.

2024年是偉大變革的一年。我們宣布並執行了我們承諾的所有措施，包括剝離我們的 BPS 業務、外包貸款服務以及開始大幅削減這些舉措帶來的成本。 2025 年，我們將在 2024 年採取的措施的基礎上進一步降低成本，並專注於如何最好地配置我們的資本，以發展我們的主要業務並向股東返還資本。

Our first quarter results have both some residual noise from our actions in 2024, as well as demonstrate our capacity to deliver growth and return capital. Let me touch on some of the highlights of our performance during the quarter. Joe will then provide more information on our business on a continuing basis, excluding the impacts of our strategic actions.

我們第一季的業績既反映了我們 2024 年行動的一些殘留影響，也展現了我們實現成長和回報資本的能力。讓我談談我們本季業績的一些亮點。喬隨後將持續提供有關我們業務的更多信息，但不包括我們戰略行動的影響。

First, we saw a strong loan origination growth in a relatively stable rate environment. Our refi loan volume doubled from the same period a year ago, resulting in a 46% increase in originations compared to last quarter. Increasingly, borrowers appear to be getting off the refinancing fence as the expectation for loan forgiveness has diminished and other federal student loan repayment-related programs have ended.

首先，我們看到在相對穩定的利率環境下貸款發放量強勁成長。我們的再融資貸款量比去年同期翻了一番，與上一季相比，貸款發放量增加了 46%。隨著貸款減免預期的降低以及其他聯邦學生貸款償還相關計劃的結束，越來越多的借款人似乎放棄了再融資的計劃。

Our growth and originations was also driven by iterative improvements we are making over time in converting prospects into customers with closed loans. The profile of these borrowers is strong. Roughly 55% of this quarter's refi originations were to students with graduate degrees and reflect the high credit quality of this targeted cohort.

我們的成長和發起也受到我們不斷進行的迭代改進的推動，我們將潛在客戶轉化為已結清貸款的客戶。這些借款人的資格非常強。本季度約有 55% 的再融資發放給了擁有研究生學位的學生，這反映了這一目標群體的高信用品質。

Second, we saw strong improvement in NIM in our felt portfolio. Here, the lower levels of pre-payment activity, in large part a result of the expiration or elimination of federal loan forgiveness programs, created a lower loan premium amortization expense.

其次，我們看到毛氈投資組合中的 NIM 有了強勁改善。在這裡，較低的預付款活動（很大程度上是由於聯邦貸款減免計劃的到期或取消）產生了較低的貸款溢價攤銷費用。

Third, we closed on the sale of our government services business in February, completing the divestiture of BPS. Our operating expenses show that we are tracking well against our ambitious targets to reduce expenses. Altogether, the investment of BPS, outsourcing and servicing, and streamlining of corporate expenses are resulting in dramatic changes in our expense and employee footprint.

第三，我們在二月完成了政府服務業務的出售，完成了對 BPS 的剝離。我們的營運費用表明，我們正在順利實現降低費用的雄心勃勃的目標。總而言之，對 BPS 的投資、外包和服務以及公司開支的精簡正在導致我們的開支和員工足跡發生巨大變化。

During the quarter, roughly 1,300 employees departed the company through the business sale or job eliminations. At the end of the quarter, our employee base was more than 80% lower than at year end 2023. Completing the sales of our BPS business gives us greater visibility into the timing of completing our expense reduction objectives.

本季度，約有 1,300 名員工因業務出售或裁員而離開公司。截至本季末，我們的員工人數比 2023 年底減少了 80％ 以上。完成 BPS 業務的銷售使我們能夠更清楚地了解完成費用削減目標的時間。

Transition services we're providing under the outsource servicing and healthcare business transactions are expected to be largely complete during the second quarter of this year. While we are preparing to eliminate these expenses earlier, the government services TSA expenses could run through the first quarter of 2026. The reduction of our corporate expenses is ongoing, and we're keenly focused on identifying additional areas of efficiency across the enterprise.

我們根據外包服務和醫療保健業務交易提供的過渡服務預計將在今年第二季基本完成。雖然我們準備提前取消這些費用，但政府服務 TSA 費用可能會持續到 2026 年第一季。我們的企業開支削減工作正在進行中，我們非常注重在整個企業範圍內尋找更多的效率領域。

Provision expense for the quarter reflects a continuation of recent trends in consumer credit in general and for student loans in particular. Some of the same trends that are driving refi loan growth and NIM expansion, the return to repayment and reduce loan forgiveness are also influencing repayment behavior.

本季的撥備支出反映了近期消費信貸（尤其是學生貸款）趨勢的延續。推動再融資貸款成長和淨利差擴大的一些趨勢、償還貸款的回報和減少貸款減免也在影響還款行為。

During the quarter, we repurchased 35 million shares under our existing authority. We said in January that our share repurchase strategy would be more opportunistic and less programmatic than it has been in the past and would continue to be balanced with financing strong growth. Our shares continue to trade during the quarter at a significant discount to tangible book value. We will continue to balance the opportunity to purchase future value at a discount with opportunities to invest in growth.

本季度，我們根據現有授權回購了 3,500 萬股。我們在一月份表示，我們的股票回購策略將比過去更機會主義，更少程序性，並將繼續與為強勁成長提供資金保持平衡。本季度，我們的股票交易價格持續大幅低於有形帳面價值。我們將繼續在以折扣價購買未來價值的機會和投資成長的機會之間取得平衡。

Our outlook for the year is, as always, dependent in large part on macroeconomic conditions. The current outlook is exceptionally uncertain. The range of outcomes is wide and even the future direction of certain drivers of our business, such as interest rates, is fluid. We are continuing to operate our business according to our plan.

像往常一樣，我們對今年的展望在很大程度上取決於宏觀經濟狀況。目前的前景極度不確定。結果的範圍很廣，甚至我們業務的某些驅動因素（例如利率）的未來方向也是不確定的。我們將繼續按照計劃開展業務。

We have the financial and operating flexibility to respond to changes in the environment. To date, we have not yet seen any significant change in loan origination volume or felt prepayments during April. We are thus maintaining our full year guidance at this point in time, which is subject to change, especially considering the uncertain macroeconomic environment.

我們擁有財務和營運靈活性來應對環境的變化。到目前為止，我們尚未看到 4 月貸款發放有任何顯著變化，也沒有感受到提前還款。因此，我們目前維持全年指引不變，但指引可能會發生變化，尤其是考慮到不確定的宏觀經濟環境。

In summary, our operating results demonstrate our capacity to deliver strong loan growth, generate strong revenues and cash flows from our legacy assets, reduce operating expenses, and invest for growth while also distributing capital to shareholders. I want to acknowledge and thank my colleagues in the organization who delivered these strong results.

總而言之，我們的經營業績證明了我們有能力實現強勁的貸款成長，從我們的遺留資產中產生強勁的收入和現金流，降低營運費用，並投資於成長，同時向股東分配資本。我要感謝並感謝組織中取得這些出色成果的同事們。

With that, let me turn it over to Joe.

說完這些，讓我把話題交給喬。

Thank you, Dave and everyone on today's call for your interest in Navient. We had a strong start to the year, delivering first quarter core earnings per share of $0.25. Adjusting for regulatory and restructuring expenses, we earn $0.28 on a core basis. Our results for the quarter include $0.06 of net expense that will be eliminated after completion of our transition services agreement. I will provide further context on the results by segment beginning with the federal education loan segment on slide 6.

感謝 Dave 以及今天電話會議上的所有人對 Navient 的關注。我們今年開局強勁，第一季每股核心收益為 0.25 美元。調整監管和重組費用後，我們的核心利潤為 0.28 美元。我們本季的業績包括 0.06 美元的淨支出，該支出將在我們的過渡服務協議完成後消除。我將從第 6 張投影片上的聯邦教育貸款部分開始，按部分提供有關結果的進一步背景資訊。

The net interest margin for the first quarter was 61 basis points, 18 basis points higher than the fourth quarter. This exceeded the high end of our guided range of 45 to 60 basis points. The increase was partially driven by a slowdown in policy-driven pre-payment activity.

一季淨利差為61個基點，較第四季上升18個基點。這超出了我們指導範圍的高端（45至60個基點）。這一增長部分是由於政策驅動的預付款活動放緩所致。

Prepayments were $256 million in the quarter compared to $1.6 billion a year ago. We expect that prepayment activity will remain low in the near term as we are seeing historically low requests for consolidation to the direct loan program.

本季預付款為 2.56 億美元，去年同期為 16 億美元。我們預計，短期內預付款活動將保持低位，因為我們看到直接貸款計劃的合併請求處於歷史低點。

Compared to the prior year, our greater than 90-day delinquency rates increased to 10.2%. The charge-off rate improved to 10 basis points, and forbearance rates decreased to 14.4%. While there's been much discussion about the resumption of federal loan repayments and the curtailment of loan forgiveness options, it's worth remembering there remain numerous payment options available for borrowers to help manage their payments. Now, let's turn to our consumer lending segment on slide 7.

與前一年相比，我們的 90 天以上拖欠率上升至 10.2%。沖銷率改善至 10 個基點，寬容率下降至 14.4%。儘管關於恢復聯邦貸款償還和減少貸款減免選項的討論很多，但值得記住的是，借款人仍然可以選擇多種付款方式來管理他們的付款。現在，讓我們轉到幻燈片 7 上的消費貸款部分。

The interest margin in this segment was 276 basis points in the quarter compared to 277 basis points in the fourth quarter and in the middle of our stated range of 270 to 280 basis points. Total originations nearly doubled to $508 million compared to $259 million a year ago. This volume is more than triple our originations just two years ago. This was a strong start to the year and positions us well to achieve our 2025 origination target of $1.8 billion. We are not assuming any changes in federal education loan policy, but we are well positioned with the capacity, products, and customer experience to meet any potential expanded opportunities.

本季該部門的利息差為 276 個基點，而第四季為 277 個基點，位於我們規定的 270 至 280 個基點範圍的中間。總發起金額由一年前的 2.59 億美元成長近一倍，達到 5.08 億美元。這一數量是我們兩年前發起數量的三倍多。這是今年一個強勁的開端，為我們實現 2025 年 18 億美元的發起目標奠定了良好的基礎。我們不認為聯邦教育貸款政策會發生任何變化，但我們在能力、產品和客戶體驗方面處於有利地位，可以滿足任何潛在的擴展機會。

Weight stage delinquencies declined from 2.7% in the fourth quarter to 2.6%. Forbearance rates decreased from 2.7% to 1.8% as borrowers exited the natural disaster forbearance. Despite the improvement from last quarter, our delinquency rates are marginally higher than our expectations and reflect the macroeconomic and student lending headwinds Dave mentioned. Our allowance for loan loss, excluding expected future recoveries on previously charged off loans for our entire education loan portfolio is $753 million which is highlighted on slide 8.

權重階段拖欠率從第四季的 2.7% 下降至 2.6%。隨著借款人退出天災寬限期，寬限率從 2.7% 下降至 1.8%。儘管與上一季相比有所改善，但我們的拖欠率仍略高於預期，反映了戴夫提到的宏觀經濟和學生貸款逆風。我們的貸款損失準備金（不包括我們整個教育貸款組合中先前已註銷貸款的預期未來回收額）為 7.53 億美元，如第 8 張投影片所示。

The $8 million provision for loans and the $22 million provision for private education loans is primarily driven by higher-than-expected delinquency rates. Slide 9 shows the results from our business processing segment.

800 萬美元的貸款撥備和 2,200 萬美元的私人教育貸款撥備主要是由於拖欠率高於預期。幻燈片 9 展示了我們業務處理部門的結果。

In February, we completed the sale of the government services business. This sale, along with the sale of our healthcare services business last year, resulted in over $400 million of net proceeds and represents the divestment of the entirety of Navient's business processing segment. Under the terms of these agreements, we will continue to provide transition services to both BPS businesses for a period of time. The expenses and revenues from all of our transition services agreements or TSAs are reported in the other segment. Total core earnings expenses for the quarter were lowered by nearly 30% to $130 million. These expenses include three items that I want to call out on slide 10.

二月份，我們完成了政府服務業務的出售。此次出售加上去年醫療服務業務的出售，共產生超過 4 億美元的淨收益，代表 Navient 整個業務處理部門的剝離。根據這些協議的條款，我們將在一段時間內繼續為兩家 BPS 企業提供過渡服務。我們所有過渡服務協議或 TSA 的費用和收入均在其他部門報告。本季核心獲利支出總額下降近 30% 至 1.3 億美元。這些費用包括我想在第 10 張投影片上列出的三項。

First, there are $20 million of non-continuing expenses offset by $23 million of non-continuing revenues related to the final two months of operating government services prior to the close. Second, there are TSA expenses of $10 million offset by $11 million in TSA revenues. Third, there are $8 million of expenses incurred during the quarter that will be eliminated upon completion of the TSAs.

首先，2,000 萬美元的非持續性支出被與交易完成前最後兩個月營運政府服務相關的 2,300 萬美元的非持續性收入所抵銷。其次，TSA 的 1000 萬美元支出被 1,100 萬美元的收入所抵銷。第三，本季發生的 800 萬美元費用將在 TSA 完成後消除。

Our corporate shared services expenses are nearly 20% lower than a year ago, and we remain highly confident in our ability to meet our overall expense reduction targets. Let's turn to our capital allocation and financing activity that is highlighted on slide 11.

我們的企業共享服務費用比一年前降低了近 20%，我們對實現整體費用削減目標的能力仍然充滿信心。讓我們來看看第 11 張投影片上突出顯示的資本配置和融資活動。

In the quarter, we will purchase 2.6 million shares for $35 million while remaining well capitalized with an adjusted tangible equity ratio of 9.9% compared to 8.4% a year ago. In total, we returned $51 million to shareholders through share repurchases and dividends. Our current cash and capital positions provide ample capacity to repurchase shares, and we believe the current discount presents an attractive opportunity.

本季度，我們將以 3,500 萬美元的價格購買 260 萬股股票，同時保持充足的資本，調整後的有形權益比率為 9.9%，而去年同期為 8.4%。總體而言，我們透過股票回購和股利向股東返還了 5,100 萬美元。我們目前的現金和資本狀況提供了充足的回購股票的能力，我們相信當前的折扣代表著一個有吸引力的機會。

The strength of the first quarter results give us confidence in achieving our full year core earnings guidance of $1 to $1.20 dollars per share. This range estimate continues to include $0.26 of net expense on a full year basis that are not part of our continuing operations.

第一季業績的強勁表現讓我們有信心實現每股 1 美元至 1.20 美元的全年核心獲利預期。該範圍估計仍包括全年 0.26 美元的淨支出，這不屬於我們的持續經營業務。

While we have seen a lot of volatility in the market, our guidance reflects a current expectation of moderately lower rates in the back half of 2025 and no changes to federal student loan policy. As I close, I'd like to thank all of our Navient team members for their continued dedication to generating value for all stakeholders.

雖然我們看到市場出現很大波動，但我們的指引反映了目前的預期，即 2025 年下半年利率將適度下降，且聯邦學生貸款政策不會改變。最後，我要感謝所有 Navient 團隊成員持續致力於為所有利害關係人創造價值。

Thank you for your time, and I will now open the call for any questions.

感謝您抽出時間，現在我將開始回答任何問題。

(Operator Instructions)

（操作員指示）

Bill Ryan, Seaport Research Partners.

比爾·瑞安（Bill Ryan），海港研究合作夥伴。

Good morning, Dave and Joe. Obviously got a little bit of excitement on Monday, I think that was the first time we actually saw a proposal to eliminate Grad Plus as part of the budget reconciliation process. Could you remind us what percentage of loans in the Grad Plus program you think are under writable by the private sector and how Navient's products may differ from its peers? And along the same lines, do you think there might be any changes to the direct loan program which could be impactful to your business as well?

早上好，戴夫和喬。顯然，週一我們有點興奮，我認為這是我們第一次真正看到在預算協調過程中取消 Grad Plus 的提議。您能否提醒我們，您認為 Grad Plus 計劃中私部門承保的貸款佔比是多少，以及 Navient 的產品與同業有何不同？同樣，您是否認為直接貸款計劃可能會發生一些變化，從而對您的業務產生影響？

Morning Bill, and thanks for the question. We talked in the first quarter, as you indicated, there were some very broad proposals about changes in the federal government, generally things like Project 2025 and a couple other even broader proposals but more limited to federal education lending. Monday, the House Workforce Education and Workforce Committee published a bill that's designed to meet the budget targets of the House reconciliation effort. That bill is -- has some -- it's complex. It's definitely got some puts and takes on the changes in the federal education policy, and it's not clear exactly the extent to which those changes, if enacted, would expand the private loan market so we're going to have to wait and see. There's some -- there is elimination of some of the plus programs, but there's some replacement with other federal programs as well. So we're going to and see how those puts and takes work out.

早安，比爾，謝謝你的提問。正如您所說，我們在第一季度討論過一些關於聯邦政府改革的非常廣泛的提議，通常是“2025 項目”和其他一些更廣泛的提議，但更多地局限於聯邦教育貸款。週一，眾議院勞動力教育和勞動力委員會宣布了一項旨在實現眾議院和解努力的預算目標的法案。該法案有些複雜。聯邦教育政策的變化肯定會帶來一些影響，而且目前還不清楚這些變化一旦實施將在多大程度上擴大私人貸款市場，所以我們只能拭目以待。有一些附加計劃被取消了，但也有一些被其他聯邦計劃取代。因此我們將看看這些投入和產出如何發揮作用。

The two things that I would say is one is I think we demonstrated today in our results that we don't need an expansion of products to grow. We feel confident in our ability to grow with the products that we have. If you think about the graduate customer in general, we're our earnest distribution network and business model is built for purpose around the graduate cohort. They have high loan balances, relatively low and efficient acquisition costs, and tend to be distributed on a digital way as opposed to a -- through a financial aid offices, et cetera. So we're confident if there is an expansion of the Grad Plus program, private lending to them that we can take our fair share of that if that opportunity presents itself.

我想說的兩件事是，第一，我認為我們今天的結果表明，我們不需要擴大產品規模來實現成長。我們對憑藉現有產品實現成長的能力充滿信心。如果你從整體上考慮畢業生客戶，我們認真的經銷網絡和商業模式都是圍繞著畢業生群體建立的。它們的貸款餘額較高，收購成本相對較低且高效，並且傾向於以數位方式分發，而不是透過財務援助辦公室等方式。因此，我們相信，如果 Grad Plus 計劃擴展，並有機會向他們提供私人貸款，那麼我們就可以從中獲得應有的份額。

I think with respect to broader changes in direct loan, I'm going to play a businessperson and not public policy expert and we'll have to see how that evolves. But again, we're focused on the plan we have this year and are anxious to look at any developments and opportunities that come out of that, but I think it's premature at this point based on Monday's bill to make any predictions about that.

我認為，就直接貸款的更廣泛變化而言，我將扮演一名商人而不是公共政策專家，我們必須看看情況如何發展。但是，我們再次強調，我們專注於今年的計劃，並急切地希望看到由此產生的任何發展和機遇，但我認為，根據週一的法案，現在對此做出任何預測還為時過早。

Okay, thanks for that. And just one follow up, obviously, the provision was up both in the felt portfolio and private credit, you cited increases in delinquent balances. Maybe if you could provide us a little bit more color on what you actually see going on there, is this kind of related to the moral hazard of all these loans being in deferment for a long period of time, and I presume that the reserve bill in private is still concentrated in the private legacy portfolio.

好的，謝謝。還有一個後續問題，顯然，毛氈投資組合和私人信貸的撥備都有所增加，您提到了拖欠餘額的增加。也許您可以向我們提供一些關於您實際看到的情況的詳細信息，這是否與所有這些貸款長期延期的道德風險有關，並且我認為私人儲備票據仍然集中在私人遺留投資組合中。

Yeah, Bill. I think there's a couple things that we would call out. One is there's a general macroeconomic impact, I think, that's happening. If you look at, for example, the percentage of credit card balances where borrowers are paying their minimum balance. They're -- I think their highest point in over 10 years. Obviously, inflation and rising interest rates are creating some pressure on borrowers across the industry. And so I think, we're seeing that, and others are seeing that to varying degrees with different asset classes.

是的，比爾。我認為有幾件事值得我們注意。一是我認為這會產生普遍的宏觀經濟影響。例如，如果你看借款人支付最低餘額的信用卡餘額百分比。我認為這是他們十多年來的最高點。顯然，通貨膨脹和利率上升給整個行業的借款人帶來了一些壓力。所以我認為，我們看到了這一點，其他人也在不同資產類別中不同程度地看到了這一點。

I think student loans in general have gone through a way of unique or distinctive if not unique experience through the pandemic. And so, when the federal loan program and many private borrowers like us provided forbearance programs during the pandemic, we saw credit statistics and delinquencies and charge offs declined rapidly, knowing that they would rebound once things normalized. It's taken quite a bit of time for that to happen, particularly on the federal side with the ending of the payment holiday, et cetera.

我認為，在疫情期間，學生貸款總體上經歷了一種獨特或與眾不同的經歷。因此，當聯邦貸款計劃和許多像我們這樣的私人借款人在疫情期間提供延期償還計劃時，我們看到信用統計數據、拖欠率和沖銷額迅速下降，因為我們知道，一旦情況恢復正常，它們就會反彈。這需要相當長的時間才能實現，特別是聯邦政府方面付款假期的結束等等。

So what we're doing now is looking at our portfolio. We're doing the two things that we've always done with respect to borrowers. One, we're working with them very proactively to help them repay their loan. We have programs that we've had in place for some time to help them do that. And secondly, from a financial perspective, we're responding to what we see and making sure that we've got the right provision against that.

所以我們現在正在做的是審視我們的投資組合。我們正在針對借款人做兩件我們一直在做的事情。首先，我們正在積極與他們合作，幫助他們償還貸款。我們已經實施了一些計劃來幫助他們做到這一點。其次，從財務角度來看，我們正在對所看到的情況做出反應，並確保我們已為此做好正確的準備。

Sanjay Sakhrani, KBW.

Sanjay Sakhrani，KBW。

Thanks, good morning. Just had a question on the strategic action, sort of multi question here. I guess one is I just want to make sure I understand. So what the expense numbers that you guys outline in terms of getting to a pro forma, over like what time period should we expect to get to that $204 million? And I guess is the intention to get to an earnings power that's closer to sort of where you guys were before all of this began somewhere north of $2? And then just secondly in terms of like the growth initiatives, is that -- are we certain we're going to go down that path and maybe what kind of expenses should we consider for those growth initiatives? Thanks.

謝謝，早安。我剛才對戰略行動有一個疑問，這裡有多個問題。我想一個原因是我只是想確保我理解。那麼，你們列出的費用數字在預計的時間內能達到 2.04 億美元嗎？我想，你們的意圖是讓獲利能力接近這一切開始之前的水平，即每股 2 美元左右？其次，就成長計畫而言，我們確定要走這條路嗎？對於這些成長計劃，我們應該考慮哪些方面的開支？謝謝。

Yeah, so the -- thanks for the question, Sanjay. The -- when the completion of the sale of government services in the first quarter gives us the visibility now in terms of the timing of when we can take out the expenses that we first articulated back in January of 2024, right? And so, that was $400 million on a 2023 actual basis. That was our target. That still is our target, and we still think that's well within our grasp. We're well past the sixth inning in our accounting of this in terms of where we are.

是的，所以——謝謝你的提問，桑傑。當第一季完成政府服務銷售後，我們就能清楚知道何時可以扣除我們在 2024 年 1 月首次提出的費用，對嗎？因此，以 2023 年實際計算，這一數字為 4 億美元。這就是我們的目標。這仍然是我們的目標，而且我們仍然認為這完全在我們的掌握之中。就我們目前所處的位置而言，我們對這個問題的評估已經遠遠超過了第六局。

What government services does is it allows us to understand what the remaining services that we're going to provide to the buyer of that business are, and those we now think will last as long as 12 months, perhaps shorter, both we and they are motivated to try to end that TSA sooner. And so, we'll work to do that and we're planning and preparing to do that but assume that that's going to be Q1 of 2026.

政府服務的角色是讓我們了解我們將為該業務的買家提供的剩餘服務是什麼，我們現在認為這些服務將持續 12 個月，甚至更短，我們和他們都希望盡快結束 TSA。因此，我們將努力做到這一點，我們正在計劃和準備做到這一點，但假設這將是 2026 年第一季。

And then after we're done providing those TSA services, the cost that we still have that are now stranded, they're not providing services to those businesses anymore. It's going to take us a quarter or two to get those out. And so, by the middle of next year, we would expect to have fully run through the $400 million that we articulated in 2023.

在我們完成提供這些 TSA 服務之後，我們仍然需要承擔現在被擱置的成本，他們不再向這些企業提供服務。我們需要一到兩個季度的時間才能完成這些工作。因此，到明年年中，我們預計將完全用完我們在 2023 年提出的 4 億美元。

Your other part of your question is the earnings power of the company. I think we showed in -- we did show in January the impact of those savings. Remember, the $400 million was also associated with $285 million worth of revenue as well. And so, the net savings and the net earnings power from what we're doing on a continuing basis is a little more than $1 a share at our current share count. Additional earnings will come from growth initiatives, from deployment of capital to repurchase shares. We talked about sharing more information about our plans relative to earnest and growth initiatives in the second half of the year, and so, I asked you to wait for that, we're still on target to do that.

你的問題的另一部分是公司的獲利能力。我認為我們確實在一月份展示了這些節省的影響。請記住，這 4 億美元也與價值 2.85 億美元的收入相關。因此，以我們目前的股份數量計算，我們持續採取的行動所帶來的淨節省和淨獲利能力略高於每股 1 美元。額外收益將來自成長計畫、資本部署和回購股票。我們談到了在下半年分享更多有關認真和增長計劃的計劃信息，所以，我請你們等待，我們仍然有望做到這一點。

And then the growth initiatives, the key for us, I think in earnest is demonstrating that we can grow and maintain operating leverage. And so, that's why the products that we picked, the purpose that we built earnest around is this high balance, low acquisition cost, high credit quality, digitally distributed customer that we think has some significant operating leverage associated with it.

然後，我認為成長計劃對我們來說至關重要，即認真證明我們可以成長並保持經營槓桿。因此，這就是我們選擇產品的原因，我們認真建立的目標是高餘額、低收購成本、高信用品質、數位分佈的客戶，我們認為這具有一些顯著的經營槓桿。

Just one quick follow up on that. So there were, Dave mentioned $285 million of revenues, it's actually $285 million of expenses and a little north of 320 million of revenues associated with that. And to your point about the expenses that we've identified, that's the $0.26 that I had mentioned in his remarks. We had $1 to $1.20 in terms of our EPS range, but that includes the $0.26 of net expenses that we've identified for removal on Dave's timeline.

對此僅進行一次快速跟進。因此，戴夫提到的收入為 2.85 億美元，實際上是支出為 2.85 億美元，與之相關的收入略高於 3.2 億美元。至於您提到的我們已經確定的費用，那就是我在他的評論中提到的 0.26 美元。我們的每股收益範圍為 1 美元至 1.20 美元，但其中包括我們在 Dave 的時間表上確定要取消的 0.26 美元淨支出。

Got it. I think we're not -- we don't think we're done, as we're -- we see the light at the end of that tunnel, we're looking for other opportunities to be more efficient across the enterprise and we'll share our plans and actions with you as we develop.

知道了。我認為我們還沒有——我們不認為我們已經完成了，因為我們——我們看到了隧道盡頭的光明，我們正在尋找其他機會來提高整個企業的效率，我們將在發展過程中與你們分享我們的計劃和行動。

Perfect, thank you so much for reviewing that. Just one follow up question, Joe, on the NIM, just going forward, you mentioned the slowdown in prepayments for the NIM. Like, should we then expect the NIM to sort of stabilize here going forward because of that? Is there more -- are there more tailwinds as prepayments normalized? I'm just curious if you could give us a little bit of color on the on the NIM progression on a go forward basis.

非常好，非常感謝您的評論。喬，關於 NIM，我只想問一個後續問題，您提到了 NIM 預付款的放緩。那麼，我們是否應該預期 NIM 未來會因此而趨於穩定？隨著預付款正常化，是否會出現更多順風？我只是好奇您是否可以向我們介紹 NIM 未來的進展。

And just one more on this Bill's second question. On the delinquencies, just going forward, do you guys feel like you have a good handle on it in the reserve now such that there's no more reserve bills associated with the pressures that you're seeing? Thanks.

關於該法案的第二個問題，我再問一個。關於拖欠問題，就目前的情況來看，你們是否覺得現在已經很好地控制了儲備金，不再有與你們所看到的壓力相關的儲備金賬單了？謝謝。

Yeah, thanks, Sanjay. So on the felt NIM, certainly pleased that we're on the high end or actually exceeded our range. I would say that on a quarterly basis, the second quarter, I would anticipate that we would be, again, in that high end of the range. With the rate cuts that although moderate expected in the second half of the year, as you may remember, that does bring some pressure in terms of the way that the assets reset on a daily basis versus our funding is monthly and quarterly so there is a bit of a lag there that creates pressure. So all in all, I feel very confident in terms of achieving our range, but there are some puts and takes here in terms of how that will play out through each quarter, but I do feel very good in terms of where we are to start the year and our outlook for the remainder of the year.

是的，謝謝，桑傑。因此，就 NIM 而言，我們當然很高興我們處於高端，或者實際上超出了我們的範圍。我想說的是，按季度計算，即第二季度，我預計我們將再次處於該範圍的高端。儘管預計下半年利率會適度下降，但正如您可能記得的那樣，這確實帶來了一些壓力，因為資產是按日重置的，而我們的融資是按月和按季度重置的，因此存在一些滯後，從而產生了壓力。總而言之，我對實現我們的目標範圍非常有信心，但對於每個季度將如何發展，還有一些不確定因素，但對於我們今年的開局和今年剩餘時間的前景，我確實感到非常滿意。

As it relates to delinquencies, as I noted and Dave noted, we were certainly expecting a higher delinquencies in the first quarter just as it related to some of the borrowers exiting the various disaster forbearance programs and that's starting to flow through. We did see improvement, but it was marginally higher than what our expectations were, so we appropriately took the provision for that. So I feel good just based off of where we are, but it's certainly something we'll continue to monitor throughout the year.

至於拖欠情況，正如我和戴夫指出的那樣，我們當然預計第一季的拖欠率會更高，因為這與一些借款人退出各種災難寬容計劃有關，而且這種情況已經開始顯現。我們確實看到了改善，但略高於我們的預期，因此我們適當地為此做出了準備。因此，就我們目前的狀況而言，我感覺很好，但我們肯定會在全年繼續監測這一點。

One thing I would add on the prepayments is with the change in the administration, I think there's a sort of fundamentally different dynamic that's going on, right. In the prior administration, there were a series of programs, those programs would have various levels of take up that would impact us through consolidation activity itself. Some of those actions, if not most of them, were challenged by the court. And so, it was a kind of a roller coaster period of prepayments spiking and then falling off rather quickly. It was highly unpredictable for us and for you because we couldn't tell what the administration was going to do, though they were certainly inclined to look for ways to grant more forgiveness rather than less.

關於預付款，我想補充一點，隨著政府的變動，我認為情況發生了根本性的變化，對吧。在前政府中，有一系列計劃，這些計劃的實施程度各不相同，並透過整合活動本身對我們產生影響。其中一些行動（如果不是大多數的話）受到了法庭的質疑。因此，這是一個過山車般的時期，預付款激增，然後迅速下降。對我們和您來說，這都是非常難以預測的，因為我們無法知道政府將要做什麼，儘管他們肯定傾向於尋找給予更多而不是更少寬恕的方法。

With the change in the administration, it's really a lack of action on forgiveness, they have a different philosophy about loan forgiveness, so it's not as if they're going to -- at the moment, the outlook would be it's not as if they're going to take an action. They're not going to take action and so that provides two things. I think it provides a little more visibility, at least for us in terms of what to expect over the next, at least six to nine months. And therefore, I think it's just a different dynamic than it was in the prior administration.

隨著政府的更迭，他們在貸款減免方面確實缺乏行動，他們對貸款減免有不同的理念，所以他們不會——目前的前景是他們不會採取行動。他們不會採取行動，所以這說明兩件事。我認為它提供了更多的可見性，至少對我們來說，可以預見未來至少六到九個月的情況。因此，我認為這與前政府的情況有所不同。

Nathaniel Richam, Bank of America.

納撒尼爾·裡查姆，美國銀行。

Good morning and thanks for taking my question. I want to touch on originations for a second. I know you're reiterating the $1.8 billion guide for the year, but I was curious if there's any like changes to your outlook in terms of the timing or the like, yeah, the timing of the volumes. I think previously you're expecting, like 10% growth in school and like 40% to 50% refinance with like some back half waiting. But you know 1Q seems to be off like to a much stronger start. So just curious to see like if this is some pull forward you're expecting or just, I guess, conservatives in the overall origination guide.

早上好，感謝您回答我的問題。我想稍微談談起源問題。我知道您重申了今年 18 億美元的指導方針，但我很好奇您的前景在時間安排或交易量的時間安排方面是否有任何變化。我認為之前您預期的是，學校學費會增加 10%，再融資會達到 40% 到 50%，還有一半需要等待。但您知道，第一季的開局似乎更加強勁。所以我只是好奇地想看看這是否是您所期望的某種推動力，或者我猜只是整體起源指南中的保守派。

I think there's no change in terms of our outlook on the timing. But if you go back to our marks in the fourth quarter, we had sort of a similar view on interest rates even with all of the volatility. I would say that the first quarter certainly gives us high confidence that we'll be able to achieve that, but it's just a little early at this stage to comment on the second half. And certainly, one of the bigger drivers of what could create volume beyond what we're projecting is a decline in interest rates. And as I said, just fairly similar to what we had in the fourth quarter as our guidance, so I don't have any change at this point.

我認為我們對時機的看法沒有改變。但如果回顧第四季的記錄，即使有所有波動，我們對利率的看法仍然類似。我想說，第一季的表現確實讓我們充滿信心，我們能夠實現這一目標，但現在對下半年發表評論還為時過早。當然，導致交易量超出我們預期的一個更大驅動因素是利率下降。正如我所說，這與我們第四季的預期非常相似，因此目前我沒有任何改變。

Okay, well then that's fair. And I think as a follow up to that, I guess like is there like I guess a threshold where you think there's like an inflection point to those originations for refi? Is it like a 50 basis points thing or like 100 or more basis points? Just curious how you guys are thinking about that.

好的，那麼這很公平。我認為作為後續問題，我猜是否存在一個閾值，您認為這個閾值是再融資起源的轉折點嗎？它是像 50 個基點一樣，還是像 100 個或更多基點？只是好奇你們是怎麼想的。

Yeah, so it's a factor of two things. Certainly, one is just overall interest rates, but also just the general funding environment in terms of how we set our pricing. So certainly a 50 basis point decline both in rates as well as the funding environment would create a significant improvement in our outlook this year. At this point though, as I said, very similar to what we were forecasting in the fourth quarter.

是的，所以這是兩個因素。當然，一方面是整體利率，另一方面是我們如何定價的整體融資環境。因此，利率和融資環境下降 50 個基點肯定會顯著改善我們今年的前景。不過，正如我所說，目前的情況與我們在第四季的預測非常相似。

Moshe Orenbuch, TD Cowen.

Moshe Orenbuch，TD Cowen。

Great, thanks. So in following up on that last question, could you talk a little bit about the spreads, and return on equity of the new business that you're putting on now? Like what does that look like in the current environment?

太好了，謝謝。那麼，在回答最後一個問題時，您能否談談您現在正在進行的新業務的利差和股本回報率？在當前環境下這看起來是什麼樣的呢？

Yeah. So as we've talked about before, the economics of that product and that business are driven by a variety of the all-in cost of all the factors of that that includes cost of acquisition, cost of credit, cost of service, et cetera, do you think this quarter's originations fit nicely into the portfolio that we have, that we built over time, that's a kind of mid-teens ROE. The time, of course, there's an upfront cost associated with booking those loans from a provision and cost of acquisition perspective, but we fit nicely into the portfolio we have we believe.

是的。因此，正如我們之前所討論的，該產品和該業務的經濟效益是由各種因素的總成本驅動的，其中包括收購成本、信貸成本、服務成本等，您是否認為本季度的起源與我們長期以來建立的投資組合非常契合，這是一種十幾歲的 ROE。當然，從撥備和收購成本的角度來看，預訂這些貸款會產生前期成本，但我們相信，這非常適合我們現有的投資組合。

And I would just add that the securitization that we did in the quarter was in line with our plans. So certainly, as we think about just the cost of funds that for the first quarter here, I'm certainly meeting our expectations in terms of how we plan for originations and the cost associated with them.

我還要補充一點，我們在本季進行的證券化符合我們的計劃。因此，當然，當我們考慮第一季的資金成本時，我肯定會滿足我們對如何規劃發起及其相關成本的預期。

Got it, thanks. And then maybe just to come back on the -- Dave, on the commentary on share repurchase. When you say that opportunistic and then you talk about the difference between the current price and tangible book like, maybe could you just expand on what opportunistic means? Is it a certain amount of dollars if the price is below a certain level or otherwise, like just flesh out how you kind of think about that.

明白了，謝謝。然後也許只是回到戴夫關於股票回購的評論。當您說機會主義，然後您談論當前價格和有形書籍之間的差異時，也許您能詳細說明機會主義的含義嗎？如果價格低於某個水平，是不是就要支付一定數量的美元，或者其他情況，就像你對此是怎麼想的一樣。

Yeah. I think there's, it -- it's a little bit of a decision tree right for us. The first sort of level is we have capital to deploy and we want to -- we have a choice between investing for growth or returning to shareholders, right? And this quarter, we balanced that off and managed to do both. What we've said as recently as January is we'll continue to look at that and if there's -- if we think there's opportunities to invest for growth, they're going to create a market value greater than the amount that we invested, then we're going to take that money and that's what we're going to do with it.

是的。我認為，這對我們來說是一個正確的決策樹。第一層是，我們有資本可供部署，而且我們想要──我們可以在投資成長和回報股東之間做出選擇，對嗎？本季度，我們實現了平衡，並成功做到了這兩點。我們最近在一月份說過，我們會繼續關注這一點，如果我們認為有投資成長的機會，它們將創造比我們投資金額更大的市場價值，那麼我們就會拿這筆錢去做我們要做的事情。

Again, this quarter, we managed to do both, but that's sort of the first level decision. Then the second level of decision is to the extent we're going to return capital to shareholders, the greater the discount to tangible book value in the market price, all of the things being equal, the more we would buy or the more rapidly would buy and that's an example of what we mean by opportunistic. Where our prior practice was more programmatic, we'd say here's the amount we're going to repurchase and we repurchase it. I won't say independent of the share price but not really driven by the share price.

同樣，本季度，我們成功地做到了這兩點，但這只是第一層次的決策。那麼，第二級決策就是我們要向股東返還資本的程度，市場價格中有形帳面價值的折扣越大，在其他條件相同的情況下，我們購買的越多或購買的速度越快，這就是我們所說的機會主義的一個例子。我們之前的做法更具程序性，我們會說這是我們要回購的金額，然後我們就會回購。我不會說與股價無關，但實際上並非受股價驅動。

Mark DeVries, Deutsche Bank.

德意志銀行的馬克‧德弗里斯。

Yeah, thanks. I have a couple of follow-up questions. First is on Moshe's last question. Maybe for Joe, is there a -- when we think about what's available to deploy, whether it's in the growth or returning to capital, should we assume that you're going to manage to this adjusted tangible equity ratio close to 10%, or will it depend on kind of the balance sheet? How should we think about what the governor is there and what that means in terms of capital that's free to either return or deploy.

是的，謝謝。我有幾個後續問題。首先是關於 Moshe 的最後一個問題。也許對喬來說，當我們考慮可以部署什麼時，無論是成長還是資本回報，我們是否應該假設你將設法將調整後的有形權益比率控制在接近 10%，還是取決於資產負債表的類型？我們應該如何思考管理者的角色以及這對於可以自由返回或部署的資本意味著什麼。

Yeah, it really -- it's a good question, Mark. So to your point, it does depend on the mix here. So as we've talked about in the past, our in-school portfolio, typically we hold 10% capital against those loans, and we hold closer to 5% against our refi books. So in terms of the mix there, that's we call it the 8 percentage has been our long-term guided growth in terms, or -- sorry, our guided ATE range, and so I would expect us to be north of 8% going forward.

是的，這確實是一個好問題，馬克。所以就你的觀點而言，這確實取決於這裡的混合。正如我們過去所討論的，我們的校內投資組合通常持有這些貸款的 10% 資本，並持有接近 5% 的再融資帳簿資本。因此，就那裡的組合而言，我們稱之為 8%，這是我們長期指導的增長，或者 - 抱歉，我們的指導 ATE 範圍，因此我預計我們未來的增長率將超過 8%。

And today, just looking at our EPS targets of where we are absent of any of large opportunities that created from a drop in interest rates that would drive volumes in refi or if there's a change in federal policy that drives volumes in in-school, I would think that it's going to be fairly stable for the remainder of the year, but it is driven by the mix of those two portfolios.

今天，僅從我們的每股盈餘目標來看，我們缺乏透過利率下降來推動再融資量或聯邦政策變化來推動校內融資量的任何重大機會，我認為在今年剩餘時間內它將相當穩定，但它是由這兩個投資組合的組合驅動的。

Okay, got it. And then just to follow up on some of the questions around delinquency trends and reserves, actually looks to me like reserves you took down in the quarter both on a dollar basis but also on a ratio basis, it goes down 40 basis points despite the rise in delinquencies. Can you just talk about kind of what drove the reduction in the coverage ratio on the quarter?

好的，明白了。然後，只是為了跟進有關拖欠趨勢和準備金的一些問題，實際上在我看來，你們在本季度減少的準備金無論是按美元計算還是按比率計算，儘管拖欠率有所上升，但它還是下降了 40 個基點。您能否談談導致本季覆蓋率下降的原因是什麼？

So you cut off a little bit. But I believe just in terms of the coverage ratios for both portfolios for the self portfolio relatively stable from quarter to quarter, the private portfolio ticked down slightly from the previous quarter, and that's more generated just by the mix of loans that we have. So we have a lower allowance as it relates to our refi books as they are very high credit quality bars with a much lower life of loan loss expectation. So as that mix shifts to more refi loans, we would anticipate that coverage ratio to continue to decline.

所以你就剪掉一點點。但我認為，僅就兩個投資組合的覆蓋率而言，自營投資組合的覆蓋率在各個季度之間相對穩定，而私人投資組合的覆蓋率較上一季度略有下降，這主要是由我們擁有的貸款組合產生的。因此，我們在再融資帳簿方面有較低的撥備，因為它們是信用品質非常高的標準，貸款損失預期壽命要低得多。因此，隨著該組合轉向更多的再融資貸款，我們預計覆蓋率將繼續下降。

Rick Shane, JP Morgan.

摩根大通的里克·沙恩。

Good morning, guys. Thanks for taking my questions. Look, the consolidation business is going well and you guys lay out a strong case there in terms of credit quality and efficiency. At the same time, you have been back in the in-school lending business now for over five years, market share, still less than 1%. And obviously, one of the key initiatives more broadly is to reinvigorate growth. I'm curious why you're not leaning in more to that opportunity. The volume this quarter almost suggests you're sort of passively in that business. I'm curious if there is a window to accelerate the growth there and whether or not that's something you really want to do.

大家早安。感謝您回答我的問題。你看，合併業務進展順利，你們在信用品質和效率方面提出了強有力的論點。同時，你們重返校內貸款業務已有五年多了，市佔率仍不到1%。顯然，更廣泛的關鍵措施之一就是重振成長。我很好奇為什麼你不多抓住這個機會。本季的交易量幾乎表明你在該業務中處於被動地位。我很好奇那裡是否有加速成長的機會，以及這是否是你真正想做的事情。

Thanks for the question, Rick. I would -- I don't think we're -- we don't view ourselves being passively in that business. I think if you think the business model that Earnest has, given our economics is predicated on this low cost of acquisition, high customer balance, high credit quality, and so it's more of a customer focused rather than a market share focus, right? We're not even in some of the markets that the largest incumbent in the spaces in, right? We don't do for profit school lending, for example, so we limit ourselves in that way. That's all very purposeful.

謝謝你的提問，里克。我認為——我們不認為我們自己在這項業務中處於被動地位。我認為，如果您認為 Earnest 的商業模式是基於低收購成本、高客戶餘額、高信用質量，那麼它更多地是以客戶為中心，而不是以市場份額為中心，對嗎？我們甚至還沒有進入該領域最大的現有企業所佔據的一些市場，對嗎？例如，我們不進行以營利為目的的學校貸款，因此我們在這方面進行限制。這一切都是有目的的。

I think we're more customer focused and making sure that we're looking for customers that our business model is built for, and our capabilities are built for and that's digital distribution. It's high average balances, which leads us to the young professional and graduate cohort where I think we compete very effectively against some of the other players.

我認為我們更加以客戶為中心，並確保我們尋找的是適合我們的商業模式和能力的客戶，這就是數位分銷。它的平均餘額很高，這使我們成為年輕的專業人士和畢業生群體，我認為我們能夠與其他一些參與者進行非常有效的競爭。

(Operator Instructions)

（操作員指示）

Jeff Adelson, Morgan Stanley.

摩根士丹利的傑夫·阿德爾森。

Hey, good morning. Thanks for taking my questions, Dave, you've been willing to take a pretty hard look at the business and execute on some strategic actions here. I'm just curious if you were to see the government opportunity open up for the in-school graduate market, would you take a look at some strategic actions for the Earnest business, including a sale potentially, or is that one you're fully happy to lean into and keep within the existing model? Thanks.

嘿，早安。感謝您回答我的問題，戴夫，您願意認真審視業務並執行一些策略行動。我只是好奇，如果您看到政府為在校畢業生市場開放了機會，您是否會考慮對 Earnest 業務採取一些戰略行動，包括可能的出售，或者您是否很樂意傾向於並保留現有模式？謝謝。

Yeah, I think you're a couple steps ahead of our thinking. We're focused, Jeff, on executing against the plan we have today. We do intend to share more thinking about the strategic direction of Earnest in the second half, and so we're continuing to do that work. I'm going to ask you to just be patient on that piece. Again, we're focused on executing as the plan we have. We do plan on sharing more information with you in the second half of the year.

是的，我認為你比我們的想法領先了幾步。傑夫，我們專注於執行我們今天的計劃。我們確實打算在下半年分享更多關於 Earnest 策略方向的想法，因此我們會繼續做這項工作。我請求你對那件事情保持耐心。再次強調，我們專注於執行我們的計劃。我們確實計劃在今年下半年與您分享更多資訊。

Okay, thanks, that's helpful. And just to circle back on Sanjay's question on the NIM. I guess understood on the near term here with some of the puts and takes with lower rates, but I guess is there a path over the medium term to you guys getting back to this kind of 80 to 100 basis point range for the felt NIM or what would it take for that to happen? Thanks.

好的，謝謝，這很有幫助。回到 Sanjay 關於 NIM 的問題。我想你們可以理解短期內一些較低利率的看跌期權和看漲期權的情況，但我想你們是否有辦法在中期內將淨利息收益率 (NIM) 恢復到 80 至 100 個基點的水平，或者需要怎樣的操作才能實現這一目標？謝謝。

Yeah/ So I think really what would it take is a couple, I want to say maybe 25, 50 basis points in terms of rate drops for you to start really picking up that floor income. And now, while that is occurring, you do have the pressure from the resets that I mentioned. But once that you've hit -- once you've hit those levels and then you start to see those expectations flatten out, that's what I would consider the environment that you saw not too long ago where we were above 80 basis points, where we did have that additional 4 income that was contributing to the felt NIM of 80% to 90%-plus in terms of the NIM. So I think it really does take a couple of cuts to get there, but also once that has occurred, you need the stability of those rates staying there for a period of time.

是的/所以我認為真正需要的是幾次，我想說大概是 25 到 50 個基點的利率下降，你才能開始真正獲得最低收入。現在，當這一切發生的時候，你確實面臨著我提到的重置所帶來的壓力。但一旦你達到了那個水平，然後你開始看到這些預期趨於平緩，這就是我認為不久前你看到的環境，我們的利率超過了 80 個基點，我們確實有額外的 4 個收入，這對感覺 NIM 的貢獻達到了 80% 到 90% 以上，就 NIM 而言。因此，我認為確實需要幾次降息才能達到這一目標，但一旦實現，就需要利率在一段時間內保持穩定。

Thank you. I'm not showing any further questions at this time. I would now like to turn to call back over to Jen for any closing remarks.

謝謝。我目前沒有其他問題。現在我想請 Jen 做最後的總結發言。

Thanks, Victor, and thank you for everybody for joining the call today. Please contact me if you have any follow-up questions.

謝謝，維克多，也謝謝大家今天參加電話會議。如果您有任何後續問題，請與我聯絡。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。祝大家有個愉快的一天。