Navient Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2015. For the fourth-quarter 2015, GAAP net income was $286 million or $0.79 diluted earnings per share, compared with $263 million or $0.64 diluted earnings per share for the year-ago quarter. Core earnings for the quarter were $172 million or $0.48 diluted earnings per share, compared with $217 million or $0.53 diluted earnings per share for the year-ago quarter. The decrease is primarily the result of a $72 million reduction in net interest income, partially offset by a $23 million decline in provision for loan losses. Excluding expenses associated with regulatory-related costs, fourth-quarter 2015 and 2014 diluted core earnings per share were $0.49 and $0.54, respectively. Net interest income was $536 million against $614 million a year ago. Net income from continuing operations was $286 million against $262 million a year ago. Income from continuing operations before income tax expense was $452 million against $421 million a year ago. The increase in net income was primarily due to a $115 million increase in net gains on derivative and hedging activities, a $23 million decrease in the provision for loan losses, a $21 million increase in gains on debt repurchases, $12 million increase in asset recovery revenue and a $10 million decrease in restructuring and other reorganization expenses. Net interest income decreased by $78 million, primarily due to a reduction in Private Education Loan net interest income resulting from a decline in the loan balance and net interest margin, as well as a reduction in the net interest margin on the FFELP Loans. Return on assets was 0.87% compared with 0.76% for the same period a year ago.

For 2015, GAAP net income was $997 million or $2.61 diluted earnings per share, compared with $1.1 billion or $2.69 diluted earnings per share for 2014. Core earnings for the year were $694 million or $1.82 diluted earnings per share, compared with $818 million or $1.93 diluted earnings per share for 2014. Excluding expenses associated with regulatory-related costs, 2015 and 2014 diluted core earnings per share were $1.85 and $2.10, respectively. Net interest income was $2,221 million against $2,667 million a year ago. Net income from continuing operations was $996 million against $1,149 million a year ago. Income from continuing operations before income tax expense was $1,600 million against $1,837 million a year ago. The decrease in net income was primarily due to a $446 million decline in net interest income, a $65 million decrease in other income, and a $21 million decrease in asset recovery revenue. Net interest income decreased by $446 million, of which $186 million related to the deemed distribution of SLM BankCo on April 30, 2014. Also contributing to the decrease was a reduction in Private Education Loan net interest income due to a decline in the loan balance and net interest margin, as well as a reduction in the net interest margin on the FFELP Loans. Return on assets was 0.74% compared with 0.81% for the same period a year ago.

For the quarter, the company reported total net charge-offs of $141 million against $174 million a year ago.