Commerce Union Bancshares, Inc (CUBN) has reported 8 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $2.06 million, or $0.26 a share in the quarter, compared with $2.24 million, or $0.30 a share for the same period last year.

Revenue during the quarter dropped 26.04 percent to $8.70 million from $11.76 million in the previous year period. Net interest income for the quarter dropped 1.37 percent over the prior year period to $7.97 million. Non-interest income for the quarter fell 70.38 percent over the last year period to $1.14 million.

Commerce Union Bancshares, Inc has made provision of $0.41 million for loan losses during the quarter, up 148.48 percent from $0.16 million in the same period last year.

Net interest margin contracted 7 basis points to 4.01 percent in the quarter from 4.08 percent in the last year period. Efficiency ratio for the quarter deteriorated to 60.50 percent from 58.89 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.

“Our first quarter results highlight our increased momentum in loan and deposit growth since last year,” said William R. DeBerry, Chairman and Chief executive officer of Commerce Union Bancshares. “We expect continued growth in 2017 due to the strong economy across our markets, our expansion into the fast growing Chattanooga market, and the recent addition of a new branch in the deposit-rich Green Hills area in Nashville.”

Deposits stood at $826.18 million as on Mar. 31, 2017, up 25.60 percent compared with $657.78 million on Mar. 31, 2016.

Investments stood at $179.27 million as on Mar. 31, 2017, up 28.14 percent or $39.37 million from year-ago. Shareholders equity was at $109.60 million as on Mar. 31, 2017.

Return on average assets moved down 14 basis points to 0.89 percent in the quarter from 1.03 percent in the last year period. At the same time, return on average equity decreased 131 basis points to 7.71 percent in the quarter from 9.02 percent in the last year period.

Nonperforming assets were almost stable over the past one year at $5.50 million on Mar. 31, 2017. Nonperforming assets to total loans was 0.79 percent in the quarter, down from 0.88 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.57 percent in the quarter, down from 0.63 percent in the last year period.

Tier-1 leverage ratio stood at 10.69 percent for the quarter, up from 10.34 percent for the previous year quarter. Book value per share was $14 for the quarter, up 3.78 percent or $0.51 compared to $13.49 for the same period last year.