This Newark home, located near White Clay Creek State Park, is the first in the state to accept bitcoin as payment. Daniel Sato/The News Journal/WOCHIT
The “fast fine” chain is targeted to open in May or June at Christiana Fashion Center. Daniel Sato/The News Journal/WOCHIT
Toys “R” Us Inc said on Tuesday it will shut about one-fifth of its stores in the United States in the coming months. Wochit
The new Planet Fitness near Stanton is set to host a "Grand Opening" ceremony Monday and members have until the end of January to join for $1 down and then $10 a month. Wochit
DCAD and NextFab makerspaces celebrate the launch of a partnership between the two entities that will enhance DCAD's programs of study. Suchat Pederson/The News Journal
Jim Henry, owner of The Dog Stop, a doggy daycare franchise that has opened it's second Delaware location in Middletown. Suchat Pederson/The News Journal
Linda McMahon, Administrator of the Small Business Administration, tours Delaware businesses in an effort to increase the visibility and awareness of the U.S. Small Business Administration and hear directly from the nation's small businesses. Suchat Pederson/The News Journal
Partner and COO David Hunt (left) and Managing Partner Anthony Wright started a new healthcare platform, Danio Diary, which aims to help loved ones and doctors stay connected and updated on the medical status of someone receiving care. Suchat Pederson/The News Journal
In conjunction with the Delaware Small Business Development Center, a comprehensive and first-of-its-kind market analysis for the entire state focusing on Delaware’s “Main Streets” and downtown areas is in the works. Jerry Smith/The News Journal/WOCHIT
Hippo Thrift owner Alan Rash explains why the treasure hunt can be a powerful experience. Jerry Habraken / The News Journal
Kalyn Butt, owner of Green Grazer Goats, started an eco-friendly land-clearing business using goats. Suchat Pederson/The News Journal
Zack King and Marissa Cordell have been planning and working to open the easySpeak Distillery & Brewpub in Milford for a year now. Jason Minto/The News Journal/USA TODAY
Checkers, the popular fast food destination known for its burgers and fries, is opening two new locations as it plans on rapid Delaware expansion. Produced by Jeff Neiburg
Delaware's Jim Jannuzzio started a textbook concierge app last year called BookBandit. Over the last year, BookBandit's download totals have tripled and the business was selected by Google to participate in an invitation-only program. Wochit
Siemens' new East Coast Locomotive Service Headquarters, a 40,000-square-foot facility near New Castle that operates as the company’s digital service support, supply chain and technical field training hub in the region. Suchat Pederson/The News Journal
Newark home first in state available for sale with bitcoin
MidiCi pizzeria coming to Christiana Fashion Center
Toys "R" Us Will Shut 180 Stores
Stanton Planet Fitness grand opening Monday
NextFab makerspaces partners with DCAD
Middletown gets new doggy day care
Administrator Linda McMahon visits Delaware
Mobile app helps loved ones and doctors stay connected
Delaware chambers hope to make state more small business friendly
Local thrift shop owner remembers his passion for the business
Using goats to clear land
New distillery brewpub soon to open in Milford
Checkers expanding in Delaware with more locations on the way
UD student's textbook app taking off
Siemens rolls into New Castle
Shares of WIlmington-based Navient spiked 10 percent on Wednesday, even after the company reported an $84 million loss for the fourth quarter of 2017.
The student loan servicing company attributed the loss to one-time charges relating to restructuring costs and to changes in the federal tax code, which came after President Donald Trump in December signed a law slashing corporate tax rates.
Navient employs about 800 people at its headquarters along Wilmington's Riverfront. It spun off from Newark-based Sallie Mae in 2014.
During an earnings call on Wednesday, CEO Jack Remondi said Navient will reduce its operating expenses by 3 percent in 2018.
"Our focus on operating efficiency will result in meaningful cost reduction," he said.
The company, among the world's largest servicers of student loans, reported net income of $292 million for all of 2017.
Direct income from the student loan business fell slightly on the year, despite the acquisition of $10 billion of new debt.
In December, Navient held more than $105 billion within its student loan portfolio.
Americans in 2017 owed more than $1.1 trillion in student loan debt, up from $115 billion a decade earlier, according to economic data from the Federal Reserve Bank of St. Louis.
Company income increased in Navient's business processing segment, which has clients in healthcare and the public sector.
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Remondi said investors have not properly valued Navient in 2017 despite its restructuring and diversification efforts, arguing during the earnings call that "there is one area ... that does not reflect what was accomplished in the year."
"Our stock price," Remondi said.
Navient share dropped roughly 15 percent during the 12 months before its earnings were announced this week, hitting a low of $13.25 on Tuesday. Since then, the price has surged to $14.72.
The company is facing legal assaults from shareholders who claim officials withheld information from investors last year about its subprime student loans.
In early October, Pennsylvania Attorney General Josh Shapiro filed a lawsuit in federal court alleging Navient – one of the country’s largest servicers of student loans – harmed "countless" borrowers by "peddling risky and expensive subprime loans that they knew or should have known were likely to default."
Subprime loans are riskier for lenders because their borrowers have lower credit ratings.
While Navient responded to the allegations immediately, calling them unfounded, the company's share price nevertheless fell more than 14 percent after Shapiro filed the lawsuit.
Shareholders angry over the loss in value are alleging Navient had "recklessly" failed to disclose loan operation details that were outlined in Shapiro's filing.
Navient also is the target of a lawsuit filed by the federal Consumer Financial Protection Bureau over allegations that the company cheated borrowers out of their right to lower their payments, according to the lawsuit.
The lawsuit further stated that the company created unlawful repayment obstacles for tens of thousands of student borrowers by providing incorrect payment information, processing payments incorrectly and failing to act when borrowers complained.
Navient denies those charges.
"While 2017 started with the challenge of the (Consumer Financial Protection Bureau) and Attorney General lawsuits, I am particularly proud that our team did not let these unsubstantiated claims distract us from executing our business plan," Remondi said on Wednesday.
The company during the past year has shifted some of its focus to refinanced student loans, which often originate among individuals with graduate degrees and professional jobs. For 2018, the company plans to acquire $1.5 billion of those refinanced loans.
"They have relatively large balances in terms on both their majority federal and private loans that may get attractive for them to be able to refinance into products like we offer," he said.
Navient also has expanded its operations beyond student loans in recent years purchasing a parking collections company and a health care payments processing company. Its non-education fee revenue jumped 21 percent in 2017.
Contact Karl Baker at kbaker@delawareonline.com or (302) 324-2329. Follow him on Twitter @kbaker6.
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