Nelnet on Thursday announced the addition of a former official in the Obama administration to its board of directors.
The Lincoln-based company said Preeta Bansal, who was general counsel and senior policy advisor for the White House Office of Budget and Management from 2009-11, has joined its board.
Bansal, a Lincoln native and graduate of Harvard Law School, also previously served as Solicitor General of the State of New York.
"We are delighted to add Preeta Bansal and her expertise and insights to the Nelnet board," Executive Chairman Mike Dunlap said in a news release. "Preeta is a distinguished global business leader and lawyer with tremendous experience in banking, financial services, government, regulation, public policy and academia. Her insights and leadership on a number of business, compliance, and policy issues will be an asset to Nelnet."
Nelnet also reported third-quarter earnings Thursday that fell short of expectations.
The company said it earned $42.9 million, or $1.05 per share, for the third quarter, compared with net income of $46.3 million, or $1.11 per share, for the same period a year ago.
That was 25 cents per share short of what financial analysts were predicting for the quarter, even though its revenue of $276 million beat expectations.
Net income excluding derivative market value and foreign currency transaction adjustments was $46.9 million, or $1.14 per share, for the third quarter, compared with $41.5 million, or $1 per share, for the same period in 2017. That number also fell short of expectations.
Nelnet said it incurred additional costs, including a $3 million impairment charge due to external servicing software development costs related to its acquisition of Great Lakes Educational Loan Services earlier this year.
The company also had $3.8 million in expenses for additional loan loss provisions related to a portfolio of federally insured loans it bought in 2013 and 2014.
Nelnet CEO Jeff Noordhoek said in a news release that he was nonetheless pleased with the results and the performance of its core businesses, including payment processing and Allo Communications, which "is ahead of schedule in the build-out of its fiber network in Lincoln and is experiencing strong demand for its products."
Allo revenue rose more than 70 percent in the third quarter compared with a year ago, as its number of customers nearly doubled over the period to 32,529. However, its net loss grew to $7.7 million, up from $4.6 million a year ago.
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