Carroll Bancorp, Inc. has reported a 48.15 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.04 million, or $0.04 a share in the quarter, compared with $0.08 million, or $0.08 a share for the same period last year.
Revenue during the quarter grew 6.64 percent to $1.27 million from $1.19 million in the previous year period. Net interest income for the quarter rose 2.65 percent over the prior year period to $1.20 million. Non-interest income for the quarter rose 28.85 percent over the last year period to $0.07 million.
Net interest margin contracted 62 basis points to 3.11 percent in the quarter from 3.73 percent in the last year period. Efficiency ratio for the quarter deteriorated to 95.58 percent from 85.94 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Loan originations have continued on budget for 2016, totaling $25 million. Most of the originations consist of commercial construction loans and commercial investor loans along with strong demand for residential home equity lines of credit. The rapid pace of refinancing of our residential mortgage loan portfolio has continued during the third quarter of 2016. These continued effects have slowed our overall loan growth which in turn has hindered net income for the year. We expect this trend to continue into the fourth quarter. As part of our goal to improve net income management continues to stay focused on reducing operating expenses." stated Russell J. Grimes, president and chief executive officer of Carroll Bancorp, Inc.
Loans outpace deposit growth
Net loans stood at $130.49 million as on Sep. 30, 2016, up 17.63 percent compared with $110.93 million on Sep. 30, 2015. Deposits stood at $135.89 million as on Sep. 30, 2016, up 29.18 percent compared with $105.20 million on Sep. 30, 2015. Return on average assets moved down 15 basis points to 0.10 percent in the quarter from 0.25 percent in the last year period. At the same time, return on average equity decreased 96 basis points to 1.02 percent in the quarter from 1.98 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.15 percent in the quarter, down from 0.19 percent in the last year period.
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