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NetBank today posted a $73.3 million loss for the third quarter.

The company's year-to-date loss was $116 million, vs. $1.1 million in the first nine months of 2005.

The Mortgage unit has been for sale since May and NetBank Business Finance for sale since July. According to several inside sources, four suitors have turned the package down, primarily due to the Commercial Money Market portfolio and other restrictions. It is also reported that the original founders Dwight Galloway and Charles Randall may not be interested in moving with new owners. Insiders call it a "mess." Galloway and Randall deny
the unit is for sale, plus they are not considering throwing in the towel.

Once the Internet leader in banking, NetBank in August reported a $31.4 million loss for its second quarter and suspended dividend payments. For the first half of the year the loss was $42.4 million, vs. a nominal gain in the first half of 2005. It was not their first loss reported.

They reported a net loss of $15.9 million for the year ended.

In 2004, Netbank reported a net loss of $17.7 million or $.38 per share for the fourth quarter, compared with net income of $10.0 million or $.21 per share during the same period a year ago. For the year, net income totaled $4.2 million or $.09 per share, compared with $50.5 million or $1.04 per share for 2003. Current period results include a provision expense against the company's Commercial Money Center, Inc. (CMC) lease receivables totaling $29.0 million, pre-tax, or $.38 per share, after-tax.

The company recorded a $29.0 million provision against its CMC lease receivables during the quarter. Management booked the additional provision after two other banks announced CMC-related settlements in November. CMC Lease portfolio Exposure.

It should be noted on August 15,2006 the US Attorneys Office in San Diego, California indicted the CMC officers for $300 million in tax evasion; Ronald Allen Fisher. Mark Edward Fisher and Kelly Michelle Fisher-Buh, arising from their receipt of unreported and untaxed income. Whether any money will come to creditors in this long CMC bankruptcy is yet to be seen.

In 2005, NetBank reported they had found "irregularities" associated with $13 million in mortgage loans, reporting a net loss of $1.4 million for the third quarter.

They had problems in delays in reporting to NASDAQ.

NetBank said it is working with regulators at the Office of Thrift Supervision to develop a multi-year plan to make strategic changes.

"This quarter's results reflect a company in transition," said NetBank CEO Steven Herbert in a company release. He called the results "noisy" due to several charges taken related to restructuring steps.


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