This was in Etrade's Story Stocks section today
NET.B@NK INC (NTBK) 14 -1. Atlanta, GA-based Internet bank, Net.B@nk, hasn't received much press since making its debut as a publicly traded company in July of 1997, in an IPO priced at $12 a share. Investors may be surprised to discover just how much progress the company has made since entering its business plan into the race for Internet fortune. In The Black: Net.B@nk has the distinction of being the first profitable Internet bank in the country. In July, the company reported its second consecutive qtr of profitability with a pre-tax earnings of $0.04, compared to a yr-ago pre-tax loss of $1.11 a share. Including the effects of tax loss carryforwards, NTBK recorded a $0.51 per share profit for the qtr. Services: The company offers checking, money market accounts, certificates of deposits, mortgage lending and online brokerage services. Why Net.B@nk? According to the latest BanxQuote Dealer Market and Institutional CD survey, Net.B@nk offers the 3rd-highest rate in the country on a six month CD. With a rate of 5.54%, the company offers the most attractive rate on a One Year Jumbo CD in the U.S. Behind the Scenes: NTBK has an agreement with Carolina First Bank, whereby CFB has agreed to hold and service the deposit accounts generated by the Internet banking operations of the company. The deal was made in exchange for 1.3 mln shares of NTBK's common stock. Assets: As of June 30, 1998, the company had 11,832 accounts and approx. $187 million in deposits. Portfolio Risk: The company's loan portfolio consists primarily of home equity loans, second mortgages and construction loans. Interest rate risk is NTBK's primary market risk exposure. Unlike many of the regional and money-center banks that have recently reported substantial trading losses, NTBK does not enter into derivative financial instruments such as futures, forwards, swaps, and options. Analyst Coverage: The stock is currently followed by two firms, Morgan Keegan and Interstate/Johnson Lane. The firms also served as underwriters of NTBK's initial public offering. Net.B@nk is due to report Q3 results Oct. 20. Analysts are expecting earnings of $0.10 a share vs a yr-ago loss of $0.33.
|
