Sallie Mae, a student loan company that is suing banks and private equity firms that agreed to buy it, posted a third-quarter loss Thursday, reflecting losses from derivative and hedging activities.
Sallie Mae , known legally as SLM, said it lost $344 million, or $0.85 a share, compared with a profit of $263 million, or 60 cents a share, a year earlier.
On a pre-tax basis, losses on derivative and hedging activities were $487 million in the period, the company said in a statement.
Ignoring certain nonrecurring costs, such as those related to recent legislative changes and $18 million tied to its merger agreement, Sallie Mae said third quarter core income was $305 million, or 70 cents per share.
Analysts had, on average, expected quarterly earnings of 73 cents per share, according to Reuters Estimates.
The Reston, Va.-based company said the portfolio of student loans it manages rose 16.8 percent to $160 billion.
Sallie Mae said Monday it filed a lawsuit seeking a breakup fee of $900 million from a consortium led by J.C. Flowers & Co that had agreed to buy the student lender for $25 billion.
The consortium balked at the deal when debt markets weakened and legislation cut subsidies to student lenders.