Summit Financial Group (SMMF) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.62 million, or $ 0.15 a share in the quarter, against a net profit of $4.06 million, or $0.38 a share in the last year period. Revenue during the quarter grew 11.33 percent to $15.96 million from $14.34 million in the previous year period. Net interest income for the quarter rose 15.71 percent over the prior year period to $13.63 million. Non-interest income for the quarter fell 8.09 percent over the last year period to $2.58 million.
Net interest margin improved 4 basis points to 3.54 percent in the quarter from 3.50 percent in the last year period. Efficiency ratio for the quarter improved to 51.16 percent from 55.93 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
H. Charles Maddy III, president and chief executive officer of Summit, commented, "While I was very disappointed recently to report the substantial charge to our first quarter earnings to resolve the ResCap litigation, we believe this settlement was in the best interests of the Company and our shareholders; it eliminates the possibility of any additional exposure relative to this issue and puts it behind us, thus allowing us to direct more resources towards enhancing long-term shareholder value. On a more positive note, Summit achieved another quarter of solid core operating performance highlighted by our improving net interest margin and core loan growth. The former Highland County Bankshares’ banking operations are now fully integrated into Summit, and its impact on our performance is exceeding our expectations. Going forward, our recently closed acquisition of FCB represents another exceptional opportunity. This transaction combines two financially strong banks with similar cultures, core values and exceptional opportunities for operational synergies, as well as a shared commitment to build long-term client relationships by providing service beyond expectations. We converted FCB’s data processing systems and re-identified its branches to that of Summit’s effective April 24, 2017."
Liabilities outpace assets growth
Total assets stood at $1,776.44 million as on Mar. 31, 2017, up 17.76 percent compared with $1,508.57 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,622.82 million as on Mar. 31, 2017, up 19.11 percent from $1,362.44 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $1,292.92 million as on Mar. 31, 2017, up 17.88 percent compared with $1,096.79 million on Mar. 31, 2016. Deposits stood at $1,301.24 million as on Mar. 31, 2017, up 18.88 percent compared with $1,094.54 million on Mar. 31, 2016. Investments stood at $282.03 million as on Mar. 31, 2017, up 3.87 percent or $10.51 million from year-ago. Shareholders equity stood at $153.62 million as on Mar. 31, 2017, up 5.13 percent or $7.50 million from year-ago.
Return on average assets was negative at 0.37 percent in the quarter against a positive 1.08 percent in the last year period. Return on average equity was negative at 4.11 percent in the quarter against a positive 11.10 percent in the last year period.
Nonperforming assets moved down 4.10 percent or $1.64 million to $38.45 million on Mar. 31, 2017 from $40.09 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 2.16 percent in the quarter, down from 2.66 percent in the last year period.
Tier-1 leverage ratio stood at 9.40 percent for the quarter, down from 10.70 percent for the previous year quarter. Book value per share was $14.29 for the quarter, up 4.46 percent or $0.61 compared to $13.68 for the same period last year.
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