Wednesday, Susquehanna Bancshares, Inc. (SUSQ) reported a plunge in fourth quarter profit on lower interest income and higher credit loan losses. However, earnings were in-line with street expectations.
Susquehanna's fourth quarter net income applicable to common shareholders plunged to $3.4 million or $0.04 per share from $18.2 million or $0.21 per share in the prior year quarter. On an average, eleven analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net interest income for the quarter increased to $108.6 million from $99.8 million in the comparable quarter last year. Total noninterest income increased to $46.0 million from $36.8 million last year.
Analysts had a consensus revenue estimate of $141.59 million for the fourth quarter.
Provision for loan and lease losses surged to $55.0 million from $22.5 million in the year-ago period. Net interest margin increased 25 basis points to 3.77% from 3.52% in the same quarter last year.
Net charge-offs as a percentage of average loans and leases for the fourth quarter was 2.06%, compared to 0.60% in prior year quarter. Nonaccrual loans and leases and other real estate owned as a percentage of loans, leases and other real estate owned was 2.48% compared to1.20% in the year-ago period.
For the full year, the company reported net loss applicable to common shareholders of $4.0 million or $0.05 per share, compared to net income of $81.8 million or $0.95 per share last year. Net interest income increased to $408.8 million from $398.3 million in the prior year. Total noninterest income increased to $163.7 million from $142.3 million last year.
Analysts expected the company to report loss of $0.12 per share on revenue of $553.69 million for the full year.
SUSQ closed Wednesday's regualr trading session at $7.71, up $0.41 or 5.62%, on a volume of 1.42 million shares on the Nasdaq.
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