Eastern Virginia Bankshares (EVBS) has reported 0.55 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2 million, or $0.10 a share in the quarter, compared with $2.01 million, or $0.11 a share for the same period last year. Revenue during the quarter grew 5.64 percent to $12.91 million from $12.22 million in the previous year period. Net interest income for the quarter rose 5.22 percent over the prior year period to $11.05 million. Non-interest income for the quarter rose 8.24 percent over the last year period to $1.87 million.
Net interest margin contracted 5 basis points to 3.68 percent in the quarter from 3.73 percent in the last year period.
In announcing these results, Joe A. Shearin, president and chief executive officer commented, "I am pleased with our Company's results during the first nine months of 2016 and the continued company-wide focus to grow our balance sheet, improve profitability and enhance the quality of products and services we offer to our customers. For the first nine months of 2016, as compared to the same period of 2015, we are reporting an increase in net income available to common shareholders of 29.5%, an increase in annualized return on average assets of 10 basis points to 0.63%, and an increase in annualized return on average common shareholders' equity of 119 basis points to 7.44%. Net income increased by 4.7% during the third quarter of 2016 as compared to the second quarter of 2016 and was primarily driven by higher interest and fees on loans, and partially offset by a lower net interest margin and higher current period expenses.
Return on average assets moved down 4 basis points to 0.61 percent in the quarter from 0.65 percent in the last year period. At the same time, return on average equity decreased 74 basis points to 7.06 percent in the quarter from 7.80 percent in the last year period.
Credit quality deterioratesEastern Virginia Bankshares witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 23.12 percent or $1.66 million to $8.86 million on Sep. 30, 2016 from $7.19 million on Sep. 30, 2015. Nonperforming assets to total loans was 0.94 percent in the quarter, up from 0.83 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.67 percent in the quarter, up from 0.58 percent in the last year period. Book value per share was $8.74 for the quarter, up 8.98 percent or $0.72 compared to $8.02 for the same period last year.
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