Investar Holding Corporation (ISTR) has reported 27.10 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.85 million, or $0.26 a share in the quarter, compared with $1.45 million, or $0.20 a share for the same period last year. Revenue during the quarter went down marginally by 1.39 percent to $9.30 million from $9.43 million in the previous year period. Non-interest income for the quarter fell 42.97 percent over the last year period to $0.90 million.
Investar Holding has made provision of $0.38 million for loan losses during the quarter, up 2.74 percent from $0.36 million in the same period last year.
Net interest margin contracted 33 basis points to 3.20 percent in the quarter from 3.53 percent in the last year period. Efficiency ratio for the quarter improved to 68.23 percent from 73.83 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Investar Holding Corporation president and chief executive officer John DAngelo said: "I am pleased to announce our results, which include net income of $1.8 million for the fourth quarter of 2016, and record net income of $7.9 million for the year. This achievement was driven by our continued, strong loan and noninterest-bearing deposit growth of 20%, stable credit quality metrics, and our commitment to controlling our operating expenses.
Liabilities outpace assets growth
Total assets stood at $1,158.96 million as on Dec. 31, 2016, up 12.35 percent compared with $1,031.56 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,046.20 million as on Dec. 31, 2016, up 13.45 percent from $922.20 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $886.38 million as on Dec. 31, 2016, up 19.89 percent compared with $739.31 million on Dec. 31, 2015. Deposits stood at $907.79 million as on Dec. 31, 2016, up 23.11 percent compared with $737.41 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $108.40 million or 11.94 percent of total deposits on Dec. 31, 2016, compared with $90.45 million or 12.27 percent of total deposits on Dec. 31, 2015.
Investments stood at $183.14 million as on Dec. 31, 2016, up 31.02 percent or $43.36 million from year-ago. Shareholders equity stood at $112.76 million as on Dec. 31, 2016, up 3.12 percent or $3.41 million from year-ago.
Return on average assets moved up 6 basis points to 0.65 percent in the quarter from 0.59 percent in the last year period. At the same time, return on average equity increased 122 basis points to 6.51 percent in the quarter from 5.29 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.52 percent in the quarter, up from 0.30 percent in the last year period.
Tier-1 leverage ratio stood at 10.10 percent for the quarter, down from 11.39 percent for the previous year quarter. Book value per share was $15.88 for the quarter, up 5.51 percent or $0.83 compared to $15.05 for the same period last year.
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