Cohen & Co. Reports Q3 2026 Net Income Growth Amidst Investment Banking Headwinds
Cohen & Co. (COHN) reported a net income of $6.7 million for the third quarter of 2026, marking a 45.7% increase compared to the same period last year. This growth was significantly bolstered by a $6.5 million deferred tax benefit resulting from reduced valuation allowances. However, adjusted pretax income saw a sharp decline to $648,000, down from $16.4 million in the prior-year quarter. The company faced significant challenges in its investment banking and new issue revenue segment, which was impacted by over $17 million in mark-to-market losses on financial instruments. While the mortgage business reached an all-time high with a $4.5 billion Gestation Repo Book, management noted a potential slowdown in deal closures compared to previous quarters. Additionally, founder Daniel Cohen has resumed the role of CEO following the resignation of Lester Brafman.
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Topics: asset management investment banking revenue mortgage business net income