BOSTON – Student loan packager The First Marblehead Corp., parent of Union Federal Savings Bank in North Providence, yesterday said its fiscal fourth-quarter loss narrowed even as its full-year losses grew.
First Marblehead (NYSE: FMD), which acquired Union Federal in November 2006, posted a net loss of $36.1 million, or 36 cents a share, in the three months ended June 30, compared with a net loss of $56.7 million, or 57 cents a share, a year earlier.
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Net revenue totaled $11.6 million, compared with negative net revenue of $33.8 million in the year-earlier period. It was the company’s first positive quarterly net revenue since the summer of 2007, according to Reuters.
For the 2009 fiscal year, First Marblehead reported a net loss of $363 million, or $3.63 a share, up from a loss of $235.1 million, or $2.46 a share, in fiscal 2008. Yearly net revenue in fiscal 2009 was negative $290 million, wider than the negative net revenue of $28.4 million in fiscal 2008.
The company had $167.2 million in cash, cash equivalents and investments on hand as of June 30.
In July, the U.S. Office of Thrift Supervision placed restrictions on Union Federal’s ability to originate student loans after the bank’s balance sheet deteriorated because of the credit crunch.
