The Community Financial Corporation (TCFC) has reported a 53 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1.96 million, or $0.42 a share in the quarter, compared with $1.28 million, or $0.27 a share for the same period last year.
Revenue during the quarter grew 13.69 percent to $10.29 million from $9.05 million in the previous year period. Net interest income for the quarter rose 11.67 percent over the prior year period to $10.14 million. Non-interest income for the quarter rose 80.69 percent over the last year period to $0.84 million.
The Community Financial Corporation has made provision of $0.70 million for loan losses during the quarter, up 39.32 percent from $0.50 million in the same period last year.
Net interest margin contracted 8 basis points to 3.47 percent in the quarter from 3.55 percent in the last year period. Efficiency ratio for the quarter improved to 66.55 percent from 73.62 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"The Company’s current year loan growth of 19.2% (annualized) to $1,051.4 million as of September 30, 2016, on a stable operating expense base has increased the Company’s operating leverage," stated James M. Burke, President of Community Bank of the Chesapeake and Chief Risk Officer. "Based on our loan pipeline, we are optimistic that our interest-earning assets will continue to grow at a rate faster than expenses through 2017. During the third quarter, the Company’s efficiency and net operating expense ratios improved 178 and nine basis points to 66.55% and 2.06%, respectively, compared to the second quarter."
Liabilities outpace assets growth
Total assets stood at $1,281.87 million as on Sep. 30, 2016, up 15.28 percent compared with $1,111.98 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,177.89 million as on Sep. 30, 2016, up 16.40 percent from $1,011.92 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $1,041.91 million as on Sep. 30, 2016, up 17.09 percent compared with $889.87 million on Sep. 30, 2015. Deposits stood at $1,011.58 million as on Sep. 30, 2016, up 14.65 percent compared with $882.28 million on Sep. 30, 2015.
Investments stood at $146.84 million as on Sep. 30, 2016, up 10.46 percent or $13.91 million from year-ago. Shareholders equity stood at $103.98 million as on Sep. 30, 2016, up 3.92 percent or $3.92 million from year-ago.
Return on average assets moved up 17 basis points to 0.63 percent in the quarter from 0.46 percent in the last year period. At the same time, return on average equity increased 239 basis points to 7.48 percent in the quarter from 5.09 percent in the last year period.
Average equity to average assets ratio was 8.37 percent for the quarter, down from 9.12 percent for the previous year quarter. Book value per share was $22.33 for the quarter.
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