Put Nelnet in the category of businesses that have been affected by the coronavirus pandemic.
The Lincoln-based financial company on Thursday said it lost $40.5 million in the first quarter, compared with a profit of $41.6 million in the first quarter of 2019.
The loss was "primarily due to adverse economic conditions caused by the COVID-19 pandemic," Nelnet said in a news release.
The company said it was forced to recognize a $63 million loan loss provision because of expected loan defaults and a $34.1 million impairment charge for certain investments negatively affected by the pandemic.
Excluding adjustments for derivative instruments left Nelnet with a first-quarter loss of $24.9 million, down from earnings of $64.8 million, a year ago.
"Nelnet's diversification, financial strength, and liquidity will benefit us during the pandemic and resulting recession," CEO Jeff Noordhoek said in a news release. "While the results of the quarter reflect the unique challenges brought on by the pandemic, our core business operations performed well."
People are also reading…
One business segment that did very well in the first quarter was Allo Communications, which had revenue of $18.2 million, up $3.7 million from a year ago. It increased its customer numbers 23% compared with a year ago, and Nelnet said it saw increased demand from new and existing residential customers due to the pandemic.
However, Allo's quarterly loss grew to $5.5 million as it continues to prioritize growth. The company announced earlier this year that it plans to build out a fiber network to provide service to Norfolk.