Monday, Superior Bancorp (SUPR), a holding company for Superior Bank, reported a loss for the third quarter compared to profit a year ago, hurt by investment security losses.
The Birmingham, Alabama-based Superior Bancorp posted a net loss of $6.51 million, or $0.65 per share, for the quarter compared to a net income of $1.45 million, or $0.15 per share, a year ago. Net loss for the most recent quarter included investment security after-tax losses of $7.7 million resulting from temporary impairment in investment securities held in available-for-sale investment portfolio preferred securities issued by Fannie Mae and Freddie Mac with a cost basis of $8.6 million.
Operating earnings for the quarter declined to $1.6 million, or $0.16 per share, from $2.7 million, or $0.28 per share, in the prior-year period, primarily as a result of an increase in the provision for loan losses and increased non-interest expenses due to branch expansion. Provision for loan losses increased to $2.31 million from $1.18 million in the same period last year.
On average, seven analysts polled by First Call/Thomson Financial expected the company to post a loss of $0.20 per share.
Net interest income grew 9% to $21.63 million in the quarter from $19.96 million a year ago, as core non-interest income increased to $5.2 million from $4.7 million in the prior-year quarter. Core non-interest income excludes certain items such as investment security gains and losses. The Street estimated revenues of $27.04 million.
Loans increased to $2.2 billion as on September 30, a growth of 10% from December 31, 2007 and 9% from September 30, 2007. Loan growth occurred across all of Superior Bancorp's Alabama and Florida markets, with primary expansion occurring in the commercial, mortgage and commercial real estate sectors of Superior's loan portfolio.
For the nine-month period, Superior Bancorp reported net loss of $4.97 million, or $0.50 per share, compared to net income of $5.72 million, or $0.64 per share, in the corresponding period last year. Operating earnings decreased to $1.0 million, or $0.10 per share, from $7.75 million, or $0.86 per share, in the comparable period last year.
Net interest income in the year-to-date period advanced to $61.51 million from $55.45 million, while total non-interest income slipped to $12.39 million from $13.55 million last year.
SUPR is trading down $0.07 or 1.40% at $5.28 on a volume of about 34 thousand shares.
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