PHILADELPHIA, PA — Cohen & Company Inc. (NYSE American: COHN) recently reported first-quarter net income of $1.5 million, down sharply from the prior quarter as results normalized following a large SPAC-related gain recorded late last year, while investment banking and trading activity continued to support year-over-year revenue growth.
The investment bank and asset management firm posted diluted earnings per share of $0.42 for the quarter ended March 31, compared with $1.48 in the fourth quarter and $0.19 a year earlier.
Revenue totaled $57.9 million, down from $102.7 million in the prior quarter but more than double the $28.7 million reported in the same period last year.
The fourth-quarter comparison included gains tied to the closing of the business combination between the company’s sponsored SPAC, Columbus Circle Capital Corp. I, and ProCap Financial Inc.
Investment banking and new issue revenue reached $45.7 million during the quarter, rising from $20.2 million a year earlier, driven primarily by activity at Cohen & Company Capital Markets, the firm’s boutique investment banking division focused on sectors including digital assets, energy transition, and natural resources.
Net trading revenue increased to $13.2 million from $9.2 million a year earlier, supported by stronger activity in mortgage products, SPAC equity trading, collateralized mortgage obligations, and preferred equity trading.
The company’s gestation repo business expanded to $3.9 billion as of March 31.
Principal transactions and other revenue posted a loss of $3.4 million, compared with positive revenue of $31.5 million in the prior quarter, reflecting the absence of gains tied to the ProCap transaction.
Adjusted pre-tax income, a non-GAAP measure, totaled $4 million, or $0.65 per diluted share, compared with $18.3 million in the previous quarter and $1.3 million a year earlier.
“Cohen & Company Capital Markets continued to generate positive results, with a focus on frontier technologies, including digital assets, energy transition, and natural resources,” Chief Executive Officer Lester Brafman said in a statement.
Total equity declined to $100.1 million at quarter-end from $103.1 million at the end of December.
The board declared a quarterly dividend of $0.25 per share payable June 2 to shareholders of record as of May 18.
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