First South Bancorp (FSBK) has reported 27.21 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.99 million, or $0.21 a share in the quarter, compared with $1.57 million, or $0.16 a share for the same period last year. Revenue during the quarter grew 4.04 percent to $11.59 million from $11.14 million in the previous year period. Net interest income for the quarter rose 8.91 percent over the prior year period to $8.42 million. Non-interest income for the quarter fell 9.73 percent over the last year period to $3.37 million.
First South Bancorp has made provision of $0.20 million for loan losses during the quarter, down 38.46 percent from $0.32 million in the same period last year.
Net interest margin improved 4 basis points to 3.68 percent in the quarter from 3.64 percent in the last year period. Efficiency ratio for the quarter improved to 74.16 percent from 81.41 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"The Company continues to deliver quality core financial results, showcasing the execution of our strategic plan and our ability to consistently generate earnings through sustainable revenue growth in commercial, consumer and mortgage banking services,” chief executive officer Bruce Elder said. “We are also pleased that the depth of new and existing customer relationships has resulted in robust deposit growth, which continues to support very healthy loan growth. Our capital levels and capital creation through retained earnings supports continued organic balance sheet growth."
Assets outpace liabilities growthTotal assets stood at $990.70 million as on Dec. 31, 2016, up 4.69 percent compared with $946.28 million on Dec. 31, 2015. On the other hand, total liabilities stood at $903.52 million as on Dec. 31, 2016, up 4.56 percent from $864.11 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $691.97 million as on Dec. 31, 2016, up 15.49 percent compared with $599.15 million on Dec. 31, 2015. Deposits stood at $870.60 million as on Dec. 31, 2016, up 7.31 percent compared with $811.32 million on Dec. 31, 2015. Loans to deposits ratio was 81.06 percent for the quarter, up from 75.30 percent for the previous year quarter.
Investments stood at $198.21 million as on Dec. 31, 2016, down 21.58 percent or $54.53 million from year-ago. Shareholders equity stood at $87.18 million as on Dec. 31, 2016, up 6.10 percent or $5.01 million from year-ago.
Return on average assets moved up 13 basis points to 0.80 percent in the quarter from 0.67 percent in the last year period. At the same time, return on average equity increased 142 basis points to 8.94 percent in the quarter from 7.52 percent in the last year period.
Nonperforming assets moved down 33.45 percent or $3.16 million to $6.28 million on Dec. 31, 2016 from $9.44 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.63 percent in the quarter, down from 1 percent in the last year period.
Equity to assets ratio was 8.80 percent for the quarter, up from 8.68 percent for the previous year quarter. Book value per share was $9.18 for the quarter, up 6 percent or $0.52 compared to $8.66 for the same period last year.
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