Commerce Union Bancshares, Inc (CUBN) has reported 29.19 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $2.37 million, or $0.30 a share in the quarter, compared with $1.83 million, or $0.25 a share for the same period last year. Revenue during the quarter dropped 21.07 percent to $9.26 million from $11.74 million in the previous year period. Net interest income for the quarter rose 1.50 percent over the prior year period to $7.84 million. Non-interest income for the quarter fell 60.81 percent over the last year period to $1.58 million.
Net interest margin contracted 5 basis points to 3.98 percent in the quarter from 4.03 percent in the last year period. Efficiency ratio for the quarter improved to 60.91 percent from 61.16 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“Our third quarter results continue to highlight the progress we have made since the merger of Reliant Bank and Commerce Union Bank was completed last year,” stated William R. DeBerry, Chairman and Chief executive officer of the Company. “We reported solid growth in net income, loans and deposits compared with the third quarter of last year. We also reported lower noninterest expenses and improved operating efficiencies that benefited from improved synergies of our combined operations. As previously announced, we plan to open a new branch in the fast growing Green Hills area of Nashville in the fourth quarter. Our outlook for the year remains positive based on our strong loan pipeline as we enter the fourth quarter.”
Assets outpace liabilities growth
Total assets stood at $920.02 million as on Sep. 30, 2016, up 7.90 percent compared with $852.69 million on Sep. 30, 2015. On the other hand, total liabilities stood at $810.79 million as on Sep. 30, 2016, up 6.92 percent from $758.29 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $652.44 million as on Sep. 30, 2016, up 11.28 percent compared with $586.31 million on Sep. 30, 2015. Deposits stood at $659.86 million as on Sep. 30, 2016, up 8.35 percent compared with $608.99 million on Sep. 30, 2015.
Investments stood at $154.82 million as on Sep. 30, 2016, up 19.07 percent or $24.80 million from year-ago. Shareholders equity stood at $109.23 million as on Sep. 30, 2016, up 15.71 percent or $14.83 million from year-ago.
Return on average assets moved up 18 basis points to 1.07 percent in the quarter from 0.89 percent in the last year period. At the same time, return on average equity increased 99 basis points to 8.87 percent in the quarter from 7.88 percent in the last year period.
Credit quality deteriorates
Commerce Union Bancshares, Inc witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 27.70 percent or $1.33 million to $6.12 million on Sep. 30, 2016 from $4.79 million on Sep. 30, 2015. Nonperforming assets to total loans was 0.93 percent in the quarter, up from 0.81 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.67 percent in the quarter, up from 0.56 percent in the last year period. Book value per share was $14.07 for the quarter, up 5.71 percent or $0.76 compared to $13.31 for the same period last year.
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