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Central Bank Still Reeling From Freddie/Fannie Hit

May 21, 2009 | Reprints | Unlock Link | Print

Somerville-based Central Bancorp Inc., parent company of Central Bank, has reported that its net loss for the fiscal year ended March 31 totaled $6.2 million, compared to net income of $1.4 million for the same period a year ago.

The company’s net loss for the most recent quarter was $1.1 million, compared to net income of $101,000, in 2008.

The financial results for the fiscal year ended March 31 were significantly impacted by the September 2008 conservatorship of Fannie Mae and Freddie Mac, the bank said. Those events resulted in a previously announced $9.4 million impairment in the value of the company’s investment in the preferred stock of these companies during the quarter ended Sept. 30, 2008.

Banking & Lending