Prime Meridian Holding Company (PMHG) has reported 28.94 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $0.65 million, or $0.32 a share in the quarter, compared with $0.50 million, or $0.26 a share for the same period last year. Revenue during the quarter grew 23.08 percent to $3.10 million from $2.52 million in the previous year period. Net interest income for the quarter rose 15.97 percent over the prior year period to $2.64 million. Non-interest income for the quarter rose 37.79 percent over the last year period to $0.47 million.
Prime Meridian Holding has made provision of $0.01 million for loan losses during the quarter, down 88 percent from $0.10 million in the same period last year.
Net interest margin contracted 12 basis points to 3.68 percent in the quarter from 3.80 percent in the last year period. Efficiency ratio for the quarter improved to 67.40 percent from 70.12 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“The Company hit several important milestones in 2016,” said Sammie D. Dixon, Jr., Chief executive officer and President. “We surpassed $300 million in total assets, exceeded $12 million in total revenue, and completed construction of our permanent office in Crawfordville. The Prime Meridian Bank team continues to operate with great momentum.”
Liabilities outpace assets growth
Total assets stood at $303.94 million as on Dec. 31, 2016, up 24.54 percent compared with $244.04 million on Dec. 31, 2015. On the other hand, total liabilities stood at $276.86 million as on Dec. 31, 2016, up 26.36 percent from $219.11 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $222.77 million as on Dec. 31, 2016, up 19.08 percent compared with $187.08 million on Dec. 31, 2015. Deposits stood at $275.35 million as on Dec. 31, 2016, up 26.55 percent compared with $217.57 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $61.86 million or 22.46 percent of total deposits on Dec. 31, 2016, compared with $50.16 million or 23.05 percent of total deposits on Dec. 31, 2015.
Investments stood at $33.10 million as on Dec. 31, 2016, down 13.03 percent or $4.96 million from year-ago. Shareholders equity stood at $27.08 million as on Dec. 31, 2016, up 8.62 percent or $2.15 million from year-ago.
Return on average assets moved up 6 basis points to 0.87 percent in the quarter from 0.81 percent in the last year period. At the same time, return on average equity increased 144 basis points to 9.62 percent in the quarter from 8.18 percent in the last year period.
Nonperforming assets moved up 491.97 percent or $0.67 million to $0.81 million on Dec. 31, 2016 from $0.14 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.27 percent in the quarter, up from 0.06 percent in the last year period.
Tier-1 leverage ratio stood at 8.73 percent for the quarter, down from 9.48 percent for the previous year quarter. Book value per share was $13.51 for the quarter, up 7.05 percent or $0.89 compared to $12.62 for the same period last year.
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