SB Financial Group, Inc. (SBFG) has reported a 12.50 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $2.55 million, or $0.40 a share in the quarter, compared with $2.26 million, or $0.35 a share for the same period last year.
Revenue during the quarter grew 17.74 percent to $11.69 million from $9.92 million in the previous year period. Net interest income for the quarter rose 9.85 percent over the prior year period to $6.67 million. Non-interest income for the quarter rose 26.90 percent over the last year period to $5.02 million.
Net interest margin contracted 4 basis points to 3.77 percent in the quarter from 3.81 percent in the last year period. Efficiency ratio for the quarter deteriorated to 67.83 percent from 65.56 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Our third quarter performance was highlighted by our strongest mortgage origination quarter ever, and included double-digit loan and deposit growth and the resolution of a $3.5 million non-performing credit," said Mark Klein, chairman, president, and chief executive officer of SB Financial. "Additionally this quarter, our $0.40 per share earnings represented a meaningful contribution from each of our six primary business lines. This strong performance further highlights our successful execution of our key strategic initiatives to drive growth for our company and value for our shareholders."
Liabilities outpace assets growth
Total assets stood at $801.80 million as on Sep. 30, 2016, up 11.48 percent compared with $719.24 million on Sep. 30, 2015. On the other hand, total liabilities stood at $715.54 million as on Sep. 30, 2016, up 11.99 percent from $638.91 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $612.03 million as on Sep. 30, 2016. Deposits stood at $662.14 million as on Sep. 30, 2016, up 15.44 percent compared with $573.57 million on Sep. 30, 2015. Loans to deposits ratio was 93.54 percent for the quarter, down from 94.30 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $116.98 million or 17.67 percent of total deposits on Sep. 30, 2016, compared with $102.46 million or 17.86 percent of total deposits on Sep. 30, 2015.
Investments stood at $92.69 million as on Sep. 30, 2016, down 2.93 percent or $2.79 million from year-ago. Shareholders equity stood at $86.26 million as on Sep. 30, 2016, up 7.39 percent or $5.94 million from year-ago.
Return on average assets moved up 2 basis points to 1.28 percent in the quarter from 1.26 percent in the last year period. At the same time, return on average equity increased 48 basis points to 11.90 percent in the quarter from 11.42 percent in the last year period.
Nonperforming assets moved down 46.51 percent or $3.96 million to $4.55 million on Sep. 30, 2016 from $8.51 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.57 percent in the quarter, down from 1.18 percent in the last year period.
Equity to assets ratio was 10.76 percent for the quarter, down from 11.17 percent for the previous year quarter. Book value per share was $13.66 for the quarter, up 7.73 percent or $0.98 compared to $12.68 for the same period last year.
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