First Community Corporation (FCCO) has reported a 19.62 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1.76 million, or $0.26 a share in the quarter, compared with $1.47 million, or $0.22 a share for the same period last year.
Revenue during the quarter grew 7.69 percent to $8.92 million from $8.29 million in the previous year period. Net interest income for the quarter rose 11.42 percent over the prior year period to $7.06 million. Non-interest income for the quarter fell 5.31 percent over the last year period to $1.98 million.
First Community Corporation has made provision of $0.12 million for loan losses during the quarter, down 17.14 percent from $0.14 million in the same period last year.
Net interest margin improved 20 basis points to 3.42 percent in the quarter from 3.22 percent in the last year period. Efficiency ratio for the quarter deteriorated to 74.31 percent from 73.86 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
First Community president and chief executive officer, Mike Crapps, commented, :Loan growth continued in the first quarter with growth of $8.6 million and production of $31.3 million. This compares to $4.8 million in loan growth and $26.4 million in production in the first quarter of 2016. Loan payoffs and paydowns impacted total loan growth in the first quarter of 2017; however, we are pleased with the year-over-year increases in both net loan growth and production, the momentum in loan production and the prospects for portfolio growth ahead. Growth in pure deposits continues to be an area of strength for our company with $14.3 million in growth in the first quarter."
Loans to deposits ratio was 72.13 percent for the quarter, up from 68.75 percent for the previous year quarter.
Return on average assets moved up 10 basis points to 0.78 percent in the quarter from 0.68 percent in the last year period. At the same time, return on average equity increased 128 basis points to 8.63 percent in the quarter from 7.35 percent in the last year period.
Nonperforming assets moved down 37.19 percent or $2.80 million to $4.73 million on Mar. 31, 2017 from $7.53 million on Mar. 31, 2016.
Capital ratios deteriorate
First Community Corp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 10.21 percent for the quarter, down from 10.23 percent for the previous year quarter. Equity to assets ratio was 9.09 percent for the quarter, down from 9.38 percent for the previous year quarter. Book value per share was $12.41 for the quarter, up 1.80 percent or $0.22 compared to $12.19 for the same period last year.
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