Sound Financial Bancorp (SFBC) has reported a 30.49 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1.46 million, or $0.56 a share in the quarter, compared with $1.12 million, or $0.44 a share for the same period last year.
Revenue during the quarter grew 14.92 percent to $6.96 million from $6.06 million in the previous year period. Net interest income for the quarter rose 10.77 percent over the prior year period to $5.42 million. Non-interest income for the quarter rose 21.88 percent over the last year period to $1.54 million.
Net interest margin improved 7 basis points to 4.19 percent in the quarter from 4.12 percent in the last year period. Efficiency ratio for the quarter improved to 68.19 percent from 69.32 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our financial performance quarter over quarter remains consistent. We achieved excellent deposit growth including a 14.8% increase in noninterest bearing transaction accounts in the third quarter. This has had a positive impact on our loan to deposit ratio," stated Laurie Stewart, president and chief executive officer of the Company and the Bank. "Organic deposit growth allows us to continue to fund our loan portfolio at a low cost."
Liabilities outpace assets growth
Total assets stood at $566.21 million as on Sep. 30, 2016, up 12.79 percent compared with $502.02 million on Sep. 30, 2015. On the other hand, total liabilities stood at $507.89 million as on Sep. 30, 2016, up 13.08 percent from $449.16 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $472.21 million as on Sep. 30, 2016, up 9.52 percent compared with $431.15 million on Sep. 30, 2015. Deposits stood at $463.48 million as on Sep. 30, 2016, up 10.46 percent compared with $419.58 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $68.37 million or 14.75 percent of total deposits on Sep. 30, 2016, compared with $50.54 million or 12.05 percent of total deposits on Sep. 30, 2015.
Investments were almost stable over the past one year at $7 million on Sep. 30, 2016. Shareholders equity stood at $58.32 million as on Sep. 30, 2016, up 10.32 percent or $5.45 million from year-ago.
Return on average assets moved up 13 basis points to 1.05 percent in the quarter from 0.92 percent in the last year period. At the same time, return on average equity increased 138 basis points to 10.04 percent in the quarter from 8.66 percent in the last year period.
Nonperforming assets moved up 153.55 percent or $3.48 million to $5.75 million on Sep. 30, 2016 from $2.27 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 1.02 percent in the quarter, up from 0.45 percent in the last year period.
Tier-1 leverage ratio stood at 10.08 percent for the quarter, down from 10.22 percent for the previous year quarter. Book value per share was $23.34 for the quarter, up 8.81 percent or $1.89 compared to $21.45 for the same period last year.
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