Meridian Bancorp, Inc. has reported a 65.40 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $9.50 million, or $0.18 a share in the quarter, compared with $5.74 million, or $0.11 a share for the same period last year.
Revenue during the quarter grew 26.87 percent to $33.74 million from $26.60 million in the previous year period. Net interest income for the quarter rose 19.41 percent over the prior year period to $31.30 million. Non-interest income for the quarter rose 18.02 percent over the last year period to $3.30 million.
Meridian Bancorp, Inc has made provision of $0.86 million for loan losses during the quarter, down 64.43 percent from $2.41 million in the same period last year.
Net interest margin was stable at 3.32 percent in the quarter, when compared with the last year period. Efficiency ratio for the quarter improved to 55.81 percent from 62.45 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Richard J. Gavegnano, chairman, president and chief executive officer, said, "I am proud to report net income of $9.5 million for the third quarter of 2016, up 61% from the second quarter of 2016 and 65% from the third quarter of 2015, and net income of $22.9 million for the nine months ended September 30, 2016, up 29% from the same period in 2015. Our record earnings resulted from strong organic growth in loans and deposits along with significant enhancements to our credit quality over the past year as accomplished through the tremendous Bank-wide efforts of our team."
Liabilities outpace assets growth
Total assets stood at $4,173.13 million as on Sep. 30, 2016, up 23.62 percent compared with $3,375.85 million on Sep. 30, 2015. On the other hand, total liabilities stood at $3,576.07 million as on Sep. 30, 2016, up 28.05 percent from $2,792.75 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $3,661.61 million as on Sep. 30, 2016, up 26.63 percent compared with $2,891.65 million on Sep. 30, 2015. Deposits stood at $3,229.57 million as on Sep. 30, 2016, up 22.77 percent compared with $2,630.68 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $410.67 million or 12.72 percent of total deposits on Sep. 30, 2016, compared with $352.36 million or 13.39 percent of total deposits on Sep. 30, 2015.
Investments stood at $145.44 million as on Sep. 30, 2016, down 3.70 percent or $5.58 million from year-ago. Shareholders equity stood at $597.06 million as on Sep. 30, 2016, up 2.39 percent or $13.96 million from year-ago.
Return on average assets moved up 26 basis points to 0.94 percent in the quarter from 0.68 percent in the last year period. At the same time, return on average equity increased 250 basis points to 6.39 percent in the quarter from 3.89 percent in the last year period.
Nonperforming assets moved down 57.45 percent or $20.53 million to $15.21 million on Sep. 30, 2016 from $35.74 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.36 percent in the quarter, down from 1.06 percent in the last year period.
Equity to assets ratio was 14.31 percent for the quarter, down from 17.27 percent for the previous year quarter. Book value per share was $11.12 for the quarter, up 3.83 percent or $0.41 compared to $10.71 for the same period last year.
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