Shares Of Susquehanna Slip On Earnings Miss

NEW YORK (AP) — Shares of Susquehanna Bancshares Inc. tumbled Monday as a handful of analysts cut their profit estimates on the regional bank after it said it expects to report that first-quarter results fell short of expectations.

Shares dropped 97 cents, or 9.2 percent, to $9.61 in afternoon trading.

After the market closed Thursday, the Lititz, Pa.-based bank said it expects to report first-quarter earnings below Wall Street's estimates, due in part to the need to set aside more money to cover loan losses. The market was closed on Friday for the Good Friday holiday.

Analysts, on average, are expecting earnings of 17 cents per share, according to a poll by Thomson Reuters.

The bank said it expects to record a provision for loan losses of $35 million, up from $22.5 million in the fourth quarter of last year. The increase is mainly due to higher net charge-offs, or loans written off as unpaid, which rose to $16.6 million from $14.4 million in the prior quarter.

SunTrust Robinson Humphrey analyst Mac Hodgson now expects the bank to report a loss of 2 cents per share, down from a prior estimate of a profit of 11 cents per share. He maintained a "Neutral" rating on the shares, adding that he expects the bank to cut its dividend by at least 75 percent to help it shore up capital. The company's dividend currently stands at 26 cents.