Customers Bancorp (CUBI) has reported 11.48 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $19.83 million, or $0.51 a share in the quarter, compared with $17.79 million, or $0.58 a share for the same period last year. Revenue during the quarter grew 15.40 percent to $65.32 million from $56.60 million in the previous year period. Net interest income for the quarter rose 19.94 percent over the prior year period to $64.13 million. Non-interest income for the quarter fell 90.10 percent over the last year period to $0.92 million.
Customers Bancorp has made negative provision of $0.26 million for loan losses during the quarter, compared with a positive provision of $6.17 million in the same period last year.
Net interest margin improved 1 basis points to 2.84 percent in the quarter from 2.83 percent in the last year period. Efficiency ratio for the quarter deteriorated to 57.70 percent from 50.11 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"In 2016 we slowed our growth rate in order to build a stronger balance sheet, build a stronger capital base and risk management infrastructure, and build BankMobile into a successful company that could be divested so both Customers and BankMobile can grow and thrive without Durbin Amendment restrictions. During the year, we successfully built upon and strengthened our core business franchise as we developed and successfully added to our commercial loan and deposit generating teams in Pennsylvania, New York, and New England, facilitating continued strong loan and deposit growth in our target markets," stated Jay Sidhu, chairman and chief executive officer of Customers.
Assets outpace liabilities growthTotal assets stood at $9,382.74 million as on Dec. 31, 2016, up 11.68 percent compared with $8,401.31 million on Dec. 31, 2015. On the other hand, total liabilities stood at $8,526.86 million as on Dec. 31, 2016, up 8.66 percent from $7,847.41 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $6,105.08 million as on Dec. 31, 2016, up 12.68 percent compared with $5,417.83 million on Dec. 31, 2015. Deposits stood at $6,846.98 million as on Dec. 31, 2016, up 20.92 percent compared with $5,662.43 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $512.66 million or 7.49 percent of total deposits on Dec. 31, 2016, compared with $408.87 million or 7.22 percent of total deposits on Dec. 31, 2015.
Investments stood at $493.47 million as on Dec. 31, 2016, down 11.92 percent or $66.78 million from year-ago. Shareholders equity stood at $855.87 million as on Dec. 31, 2016, up 54.52 percent or $301.97 million from year-ago.
Return on average assets moved down 7 basis points to 0.84 percent in the quarter from 0.91 percent in the last year period. At the same time, return on average equity decreased 301 basis points to 10.45 percent in the quarter from 13.46 percent in the last year period.
Book value per share was $21.08 for the quarter, up 13.82 percent or $2.56 compared to $18.52 for the same period last year.
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