The First Marblehead Corp. (FMD), a company providing outsourcing services for private education lending, reported Tuesday a narrower loss for the third quarter, reflecting smaller negative revenue and reduction in non-interest costs.
For the third quarter, net loss narrowed to $140.7 million or $1.42 per share from $229.6 million or $2.36 per share in the previous year.
Total revenues for the quarter were a negative $130.6 million, as compared to negative revenues of $251.8 million for the same period last year. Service revenues reflected the earlier announced sale of the company's unit, NC Residuals Owners Trust, which caused a decline in residuals receivable of about $134.5 million. The Trust held residual interests in all fifteen of the National Collegiate Student Loan Trusts, which First Marblehead had facilitated.
Total residuals for the quarter was a negative $136.37 million, compared to negative $277.43 million in the previous year
Total non-interest expenses reduced year-over-year to $74.97 million from $123.55 million. Compensation and benefits decreased to $8.78 million from $27.67 million, while general and administrative expenses declined to $18.61 million from $95.88 million in the prior-year period. Unrealized loss on loans held for sale for the latest quarter was $47.58 million.
Net interest income dipped year-over-year to $5.8 million from $7.8 million.
For the nine-month period, net loss widened to $326.9 million or $3.30 per share from $178.4 million or $1.88 per share. Total revenues were minus $301.6 million, compared to $5.0 million for the year-ago period.
FMD ended Tuesday's regular trading at $1.84, up 2.79% or $0.05 on a volume of 551,955 shares on the NYSE.
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