Commerce Union Bancshares, Inc (CUBN) has reported 28.99 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.97 million, or $0.25 a share in the quarter, compared with $1.53 million, or $0.21 a share for the same period last year.
Revenue during the quarter dropped 22.32 percent to $8.70 million from $11.20 million in the previous year period. Net interest income for the quarter rose 1.80 percent over the prior year period to $8.04 million. Non-interest income for the quarter fell 75.41 percent over the last year period to $0.87 million.
Commerce Union Bancshares, Inc has made provision of $0.21 million for loan losses during the quarter, down 9.57 percent from $0.23 million in the same period last year.
Net interest margin improved 7 basis points to 4.03 percent in the quarter from 3.96 percent in the last year period. Efficiency ratio for the quarter improved to 57.98 percent from 61.41 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We are pleased to report record results for our fourth quarter and 2016 that highlight the progress we have made since the merger of Reliant Bank and Commerce Union Bank last year," stated William R. DeBerry, chairman and chief executive officer of the Company. "For the fourth quarter and the year, we reported growth in net income, loans and deposits compared with the prior year that benefited from the strong markets in our five county market in middle Tennessee. We plan to expand our presence in Nashville with the planned opening of a new branch in Green Hills, an affluent submarket of Nashville, in the first quarter of 2017. We remain positive about our growth opportunities in 2017 based on the strong economic and demographic trends in middle Tennessee."
Assets outpace liabilities growthTotal assets stood at $911.98 million as on Dec. 31, 2016, up 4.06 percent compared with $876.40 million on Dec. 31, 2015. On the other hand, total liabilities stood at $805.06 million as on Dec. 31, 2016, up 3.26 percent from $779.65 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $657.70 million as on Dec. 31, 2016, up 8.04 percent compared with $608.75 million on Dec. 31, 2015. Deposits stood at $763.83 million as on Dec. 31, 2016, up 19.35 percent compared with $640.01 million on Dec. 31, 2015.
Investments stood at $146.81 million as on Dec. 31, 2016, up 9.71 percent or $12.99 million from year-ago. Shareholders equity stood at $106.92 million as on Dec. 31, 2016, up 10.51 percent or $10.17 million from year-ago.
Return on average assets moved up 16 basis points to 0.87 percent in the quarter from 0.71 percent in the last year period. At the same time, return on average equity increased 73 basis points to 7.33 percent in the quarter from 6.60 percent in the last year period.
Credit quality improvesCommerce Union Bancshares, Inc recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 8.43 percent or $0.52 million to $5.63 million on Dec. 31, 2016 from $6.15 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.84 percent in the quarter, down from 1 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.62 percent in the quarter, down from 0.70 percent in the last year period. Book value per share was $13.75 for the quarter, up 3.46 percent or $0.46 compared to $13.29 for the same period last year.
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