Why financial institution stocks plummeted on Friday

financial services giant financial institution (TRIB -7.52%) The weekend didn’t make shareholders any richer. The company’s stock price has fallen about 8% since its most recent quarterly earnings release. That slump was much worse than an essentially flat trajectory. S&P 500 index.

Sales increase and net profit decreases

After the market closed on Thursday, the financial institution released its 2023 fourth quarter and year-end numbers. The company’s revenue for the period was just over $55 million, an improvement over its fourth-quarter 2022 tally of $54 million. Net income was $9.4 million, or $0.61 per share, down from $12.1 million in the year-ago quarter.

The company’s total loans as of Dec. 31 were nearly $5.5 billion, slightly higher than at the same point in 2022. Total deposits reached $5.2 billion, down more than $103 million from the previous year.

Putting the final results together, analysts tracking financial institution stocks were modeling a much higher net income figure of $0.72 per share.

Last month, the financial services company made a series of changes to its top management structure and enacted a “alignment realignment” across the organization. It said the move would save about $6 million in annual non-interest costs.

Change must begin this year

The financial institution did not provide any guidance for the current quarter (Q1) or for the full year 2024 in its earnings call.

We believe that our latest move puts us in a better position for success. “The strategic realignment announced in December 2023 strengthens our leadership team and streamlines our organizational structure in key areas, while supporting our continued focus on cost management,” said CEO Martin Birmingham.