First United Corporation (FUNC) has reported a 5.83 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1.98 million, or $0.22 a share in the quarter, compared with $1.87 million, or $0.19 a share for the same period last year.
Revenue during the quarter went down marginally by 1.83 percent to $12.22 million from $12.44 million in the previous year period. Net interest income for the quarter dropped 0.43 percent over the prior year period to $9.37 million. Non-interest income for the quarter fell 4.08 percent over the last year period to $3.46 million.
First United Corporation has made provision of $0.61 million for loan losses during the quarter, up 7.22 percent from $0.57 million in the same period last year.
Net interest margin improved 4 basis points to 3.27 percent in the quarter from 3.23 percent in the last year period. Efficiency ratio for the quarter improved to 72.60 percent from 75.30 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
According to Carissa L. Rodeheaver, chairman, president and chief executive officer, "The highlight of this quarter was the successful completion of the Rights Offering. The proceeds from the capital raise of $9.2 million were applied to the redemption of $10.0 million of our Series A Preferred Stock and repayment of $10.8 million of our junior subordinated debentures. The full year result will be a savings of approximately $2.0 million in dividends and interest expense and even with the additional shares of stock, we expect this to be accretive to earnings. The Board, management and all associates continue to focus on enhancing our core earnings through increased margin and fee income and through expense control. The rebranding of the Bank during the fourth quarter of 2016 has resulted in enhanced exposure in our markets and a renewed passion from our associates to providing customized financial solutions for our customers."
Return on average assets moved up 4 basis points to 0.61 percent in the quarter from 0.57 percent in the last year period. At the same time, return on average equity increased 48 basis points to 7 percent in the quarter from 6.52 percent in the last year period.
Nonperforming assets moved down 551.28 percent or $1.29 million to $1.06 million on Mar. 31, 2017 from $0.23 million on Mar. 31, 2016.
Tier-1 leverage ratio stood at 10.99 percent for the quarter, up from 10.63 percent for the previous year quarter. Book value per share was $14.87 for the quarter, up 2.06 percent or $0.30 compared to $14.57 for the same period last year.
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