NetBank Reports Mortgage-Related Loss

NetBank Inc., an Atlanta-based online bank, has reported a mortgage-related net loss of $2.0 million ($0.04 per share) for the first quarter, compared with net income of $9.4 million ($0.20 per share) a year earlier.The production of conforming mortgages totaled $2.1 billion in the quarter, a decline of 8.6%, and the production of nonconforming mortgages totaled $630 million, a decline of 18.4%, the company reported. "The current-period loss is largely centered in our nonconforming mortgage operation," said Douglas K. Freeman, NetBank's chairman and chief executive officer. ".... More aggressive pricing industrywide and higher-than-normal provision expenses pushed results well below the level our other developing lines of business can offset today. We consider the prevailing nonconforming business conditions atypical. We are fully committed to the nonconforming operation and believe in its ability to contribute significant profitability to our bottom line in normal conditions." The company can be found online at http://www.netbank.com.