Sun Bancorp, Inc. (SNBC) has reported a 48.48 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.63 million, or $0.09 a share in the quarter, compared with $3.16 million, or $0.17 a share for the same period last year.
Revenue during the quarter dropped 23.81 percent to $17.85 million from $23.43 million in the previous year period. Non-interest income for the quarter fell 51.31 percent over the last year period to $3.14 million.
Net interest margin improved 13 basis points to 2.94 percent in the quarter from 2.81 percent in the last year period. Efficiency ratio for the quarter improved to 89 percent from 91 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"In the third quarter, the Company's now seven-quarter trend of positive earnings was maintained. We continued to demonstrate steady progress by tightly controlling expenses, carefully managing risk and growing commercial loans," said president and chief executive officer Thomas M. O'Brien. "Our asset quality and capital metrics continue to demonstrate the strength that has been evident since 2015. This was a straightforward quarter with virtually no one-time events, serving as further validation that the Company and the Bank are healthy, stable and growing profitability. Over the next several quarters, we expect to see continued reductions in expenses along with some improved revenue opportunities as several legacy items disappear. Most importantly, we continue to work to further expand our commercial business development efforts."
Assets, liabilities fall
Total assets stood at $2,189.35 million as on Sep. 30, 2016, down 4.35 percent compared with $2,289.02 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,923.47 million as on Sep. 30, 2016, down 5.41 percent from $2,033.54 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $1,550.84 million as on Sep. 30, 2016, up 2.75 percent compared with $1,509.27 million on Sep. 30, 2015. Deposits stood at $1,717.63 million as on Sep. 30, 2016, down 5.60 percent compared with $1,819.53 million on Sep. 30, 2015.
Investments stood at $292.12 million as on Sep. 30, 2016, down 1.83 percent or $5.45 million from year-ago. Shareholders equity stood at $265.88 million as on Sep. 30, 2016, up 4.07 percent or $10.39 million from year-ago.
Return on average assets moved down 20 basis points to 0.30 percent in the quarter from 0.50 percent in the last year period. At the same time, return on average equity decreased 260 basis points to 2.40 percent in the quarter from 5 percent in the last year period.
Nonperforming assets moved up 49.43 percent or $2.26 million to $6.82 million on Sep. 30, 2016 from $4.56 million on Sep. 30, 2015.
Tier-1 leverage ratio stood at 13.30 percent for the quarter, up from 11.70 percent for the previous year quarter. Book value per share was $14.08 for the quarter, up 2.92 percent or $0.40 compared to $13.68 for the same period last year.
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