Make us your home page
Instagram

Clearwater auto lender Nicholas Financial sees shares drop in wake of quarterly loss, risk review

Ralph Finkenbrink, CEO of Clearwater consumer finance company Nicholas Financial. [Company handout]

Ralph Finkenbrink, CEO of Clearwater consumer finance company Nicholas Financial. [Company handout]

Clearwater specialty auto lender Nicholas Financial saw its shares drop Friday morning to their lowest price since 2010 in the wake of a quarterly loss and an announced effort to tighten the company's risk assessment tools when making loans.

"Our net earnings for the three and twelve months ended March 31, 2017 were adversely affected primarily by an increase in the provision for credit losses due to higher charge-offs and past-due accounts along with a reduction in the gross portfolio yield," Nicholas Financial stated in its earnings release earlier this week. Shares fell Thursday on the news.

The company, which provides consumer auto financing, also cited "an extremely competitive market, greater than anticipated losses, and lower auction proceeds" for undermining its loss estimates and leading to actual losses greater than anticipated.

"We remain cautious with respect to near term losses as delinquency percentages remain elevated," the company stated.

On Friday, Nicholas Financial shares were down as much as 14.3 percent to $8.15 before rising to $8.35, up 2.45 percent by noon.

Clearwater auto lender Nicholas Financial sees shares drop in wake of quarterly loss, risk review 05/19/17 [Last modified: Friday, May 19, 2017 12:02pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Florida GDP growth in first quarter 2017 ranks 21st among states, still outpacing U.S.

    Economic Development

    Florida's gross domestic product or GDP rose 1.4 percent in the first quarter, slightly faster than the nation's growth of 1.2 percent and placing Florida 21st among the states for growth rates, according to the U.S. Bureau of Economic Analysis.

    Not too hot. Not too cold.

    These Jackson Square Townhomes began hitting the west Hillsborough County market late last year and continued to be sold into the first quarter of 2017. The real estate sector was the biggest driver of Florida's gross domestic product, which rose 1.4 percent in the first quartrer of 2017.  [JAMES BORCHUCK   |   Times]
  2. A new app will help you find your favorite Tampa Bay food trucks

    Food & Dining

    What's new: Food tech

    Local food businesses are embracing new technologies and partnerships to bring us extra deliciousness.

    Michael Blasco of Tampa Bay Food Trucks says that everyone always asked about an app to help find their favorite food trucks. There is, available for iPhones and Droids.
  3. Another Pinellas foreclosure auction fools bidders, raises questions

    Real Estate

    For the second time in six weeks, a company connected to lawyer Roy C. Skelton stood poised to profit from a Pinellas County foreclosure auction that confused even experienced real estate investors.

    A Palm Harbor company bid  $112,300 for  this Largo townhome at a foreclosure auction July 21 not realizing the auction involved a second mortgage, connected to lawyer and  real estate investor Roy Skelton -- and that the bank could still foreclose on the  first mortgage.
[SUSAN TAYLOR MARTIN   |   Times]
  4. Clearwater-based USAmeriBank acquired by New Jersey bank in $816 million deal

    Banking

    CLEARWATER — USAmeriBancorp, Inc., based in Clearwater, is being acquired by New Jersey's Valley National Bancorp in an $816 million deal, it was announced today.

    Joe Chillura, CEO of USAmeribank, shown inside a branch in Ybor City in this file photo.
[KATHLEEN FLYNN l Times]
  5. Outback Steakhouse sees growth in U.S. and Brazil markets in second quarter

    Retail

    TAMPA — Restaurant sales were up at Outback Steakhouse and Carrabba's Italian Grill during the second quarter of 2017, but Bonefish Grill continues to lag at Tampa-based Bloomin' Brands.

    The Outback Steakhouse, on 4088 Park St. N, is showin on July 26, 2017. Restaurant sales were up at Outback Steakhouse  and Carrabba's Italian Grill during the second quarter of 2017, but Bonefish Grill continues to lag at Tampa-based Bloomin' Brands. [SCOTT KEELER | Times]