Shares Drop 9.9% as Fraud Loss and Rate Markdowns Sink Q3 Earnings
NPB is trading near its 52-week low of $13.8 (3.3% above the low).
Summary
Northpointe posted Q3 net income of $13.9 million, or $0.39 a diluted share, down from $20.1 million and $0.57 a year earlier, and well short of the $0.60 analysts expected. Two items drove the miss: fair value declines tied to higher long-term rates and a $3.1 million loss from an isolated deposit fraud at its retail banking center. Non-interest income fell $11.8 million year over year to $12.3 million. Shares are down 9.9% to $14.23, near the 52-week low of $13.80, and the stock is now well below the $16.95 the CEO paid for $1.33 million of shares in August and the roughly $17 level of his $1.42 million September buy. The company also said it will exit retail and consumer deposits, and management is pursuing insurance recovery on the fraud loss.
At the time of this announcement, NPB was trading at $14.25 on NYSE in the Finance sector, with a market capitalization of approximately $492.8M. The 52-week trading range was $13.80 to $19.71. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.