First Marblehead's Bank Subsidiary Completes the Second of Two Planned Sales of Private Student Loans to RBS Citizens Financi...
July 01 2014 - 8:11AM
Marketwired
First Marblehead's Bank Subsidiary Completes the Second of Two
Planned Sales of Private Student Loans to RBS Citizens Financial
Group, Inc.
BOSTON, MA--(Marketwired - Jul 1, 2014) - The First
Marblehead Corporation (NYSE: FMD) today announced that on June 25,
2014 its subsidiary Union Federal Savings Bank sold a portfolio of
private student loans with an outstanding principal balance of
approximately $19.2 million to Citizens Bank, N.A., a subsidiary of
RBS Citizens Financial Group, Inc. ("RBSCFG"). Sales proceeds
totaled $20.3 million, including approximately $400 thousand in
accrued interest. Accordingly, the Company will recognize a
gain on sale of approximately $700 thousand during the fourth
quarter ending June 30, 2014.
This was the second of two closings relating to the sale of a
portfolio of private student loans by Union Federal to
RBSCFG. As previously announced, on March 28, 2014, Union
Federal sold a portfolio of private student loans with an
outstanding principal balance of approximately $39.8 million to
RBSCFG. Sales proceeds for that closing totaled $43.1 million,
including approximately $2.0 million in accrued interest, and the
Company recognized a gain on sale of approximately $1.4 million
during the third quarter ended March 31, 2014. The total
portfolio of private student loans sold to RBSCFG in the two
closings equaled approximately $59.0 million.
The Company has filed a current report on Form 8-K with the
Securities and Exchange Commission providing additional information
relating to the sale of the portfolio of private student loans on
June 25, 2014. We refer you to the filing, which can be
accessed through our website, www.firstmarblehead.com.
About The First Marblehead Corporation First Marblehead helps
meet the need for education financing by offering national and
regional financial institutions and educational institutions the
Monogram® platform, an integrated suite of design, implementation
and credit risk management services for private label, customizable
private education loan programs. For more information, please see
www.firstmarblehead.com. First Marblehead supports responsible
lending and is a strong proponent of the smart borrowing principle,
which encourages students to access scholarships, grants and
federally-guaranteed loans before considering private education
loans; please see www.SmartBorrowing.org. Through its subsidiary,
Union Federal Savings Bank, First Marblehead offers private
education loans, residential and commercial mortgage loans and
retail savings, money market and time deposit products. For more
information, please see www.unionfsb.com. First Marblehead also
offers outsourced tuition planning, billing, payment technology
services and refund management services through its subsidiary
Tuition Management Systems LLC. For more information, please see
www.afford.com. Through its subsidiary, Cology LLC, First
Marblehead offers private education loan processing and
disbursement services as well as life-of-loan servicing for
lenders. For more information, please see www2.cology.com.
About RBS Citizens Financial Group, Inc. Citizens
Financial Group Inc. is one of the nation's oldest and largest
financial institutions, with $126.9 billion in assets as of March
31, 2014. Headquartered in Providence, Rhode Island, the company
offers a broad range of retail and commercial banking products and
services to individuals, small businesses, middle-market companies,
large corporations and institutions. Consumer Banking helps its
retail customers "bank better" with mobile and online banking, a
24/7 customer contact center and the convenience of approximately
3,100 ATMs and approximately 1,200 Citizens Bank and Charter One
branches in 11 states in the New England, Mid-Atlantic and Midwest
regions. Citizens also provides mortgage lending, auto lending,
student lending and commercial banking services in selective
markets nationwide. In Commercial Banking, Citizens offers
corporate, institutional and not-for-profit clients a full range of
wholesale banking products and services including lending and
deposits, capital markets, treasury services, foreign exchange and
interest hedging, leasing and asset finance, specialty finance and
trade finance.
Citizens operates via subsidiaries Citizens Bank, N.A., and
Citizens Bank of Pennsylvania. Additional information about
Citizens and its full line of products and services can be found at
www.citizensbank.com.
Contact: Ray Morel Managing Director The First Marblehead
Corporation 800 Boylston Street, 34th FL Boston, MA 02199
617.638.2065
First Marblehead (NYSE:FMD)
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