First Marblehead: <br> Citizen buys portfolio

BOSTON – The First Marblehead Corp. has sold a portfolio of private student loans with a principal balance of approximately $19.2 million to Providence-based Citizens Bank, First Marblehead announced on July 1. The sale was through First Marblehead’s subsidiary Union Federal Savings Bank, which is based in North Providence.
Proceeds of the sale totaled $20.3 million, including about $400,000 in accrued interest. First Marblehead will recognize a gain on sale of about $700,000 during the quarter ending June 30, 2014, according to the announcement.
The sale was the second of two closings related to Union Federal’s sale of a portfolio of private student loans to RBS Citizens Financial Group, the parent of Citizens Bank.
Union Federal sold a $39.8 million portfolio of student loans to Citizens Bank on March 28, with proceeds on that sale totaling $43.1 million.
The total portfolio of private student loans sold in the two closings totaled about $59 million, according to First Marblehead.