Severn Bancorp (SVBI) has reported 2.32 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.10 million, or $0.08 a share in the quarter, compared with $1.08 million, or $0.05 a share for the same period last year.
Revenue during the quarter grew 7.92 percent to $7.78 million from $7.21 million in the previous year period. Net interest income for the quarter rose 7.11 percent over the prior year period to $5.70 million. Non-interest income for the quarter rose 12.28 percent over the last year period to $1.58 million.
Severn Bancorp has made negative provision of $0.50 million for loan losses during the quarter, compared with a negative provision of $0.48 million in the same period last year.
Net interest margin improved 9 basis points to 3.19 percent in the quarter from 3.10 percent in the last year period. Efficiency ratio for the quarter improved to 80.56 percent from 89.43 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"The fourth quarter results remain steady," stated Alan J. Hyatt, president and chief executive officer. Mr. Hyatt continued, "Our real work has been on reducing our cost of funds and growing our community banking presence. We have been focused on relationships and pulling in deposits along with those relationships. We want to show the residents and businesses of Anne Arundel County what we have to offer and how Severn can work for them. With retail branches in Edgewater, Annapolis, Severna Park, and Glen Burnie we continue to expand our commitment to the businesses and residents of this County."
Assets outpace liabilities growthTotal assets stood at $787.48 million as on Dec. 31, 2016, up 3.33 percent compared with $762.08 million on Dec. 31, 2015. On the other hand, total liabilities stood at $696.06 million as on Dec. 31, 2016, up 3.03 percent from $675.62 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $601.31 million as on Dec. 31, 2016, up 1.98 percent compared with $589.66 million on Dec. 31, 2015. Deposits stood at $571.95 million as on Dec. 31, 2016, up 9.20 percent compared with $523.77 million on Dec. 31, 2015. Loans to deposits ratio was 106.70 percent for the quarter, down from 114.30 percent for the previous year quarter.
Shareholders equity stood at $87.93 million as on Dec. 31, 2016, up 1.70 percent or $1.47 million from year-ago.
Return on average assets was stable at 0.56 percent in the quarter, when compared with the last year period. At the same time, return on average equity decreased 8 basis points to 5.05 percent in the quarter from 5.13 percent in the last year period.
Nonperforming assets moved up 1.01 percent or $0.11 million to $10.83 million on Dec. 31, 2016 from $10.72 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was stable at 1.40 percent in the quarter, when compared with the last year period.
Book value per share was $6.98 for the quarter, up 17.71 percent or $1.05 compared to $5.93 for the same period last year.
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