First South Bancorp, Inc. (FSBK) has reported 53.19 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1.89 million, or $0.20 a share in the quarter, compared with $1.24 million, or $0.13 a share for the same period last year. Revenue during the quarter grew 8.44 percent to $11.77 million from $10.85 million in the previous year period. Net interest income for the quarter rose 11.81 percent over the prior year period to $8.30 million. Non-interest income for the quarter fell 2 percent over the last year period to $3.69 million.
First South Bancorp, Inc. has made provision of $0.22 million for loan losses during the quarter, down 34.33 percent from $0.34 million in the same period last year.
Net interest margin improved 10 basis points to 3.73 percent in the quarter from 3.63 percent in the last year period. Efficiency ratio for the quarter improved to 73.84 percent from 82.26 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Bruce Elder, president and chief executive officer, commented, "First South Bancorp continues to execute our strategy to enhance shareholder value. The expansion of our deposit franchise and strong loan growth, leveraging our mortgage servicing infrastructure and our success in Small Business Administration (SBA) lending are having a positive impact on the rate at which earnings are increasing compared to prior year’s quarters. While more work is to be done, we have made steady progress improving our efficiency ratio from 82.26% for the quarter ended September 30, 2015, to 73.84% for the current quarter."
Assets outpace liabilities growthTotal assets stood at $985.80 million as on Sep. 30, 2016, up 7.93 percent compared with $913.37 million on Sep. 30, 2015. On the other hand, total liabilities stood at $897.50 million as on Sep. 30, 2016, up 7.91 percent from $831.74 million on Sep. 30, 2015. Loans outpace deposit growthNet loans stood at $673.97 million as on Sep. 30, 2016, up 20.41 percent compared with $559.73 million on Sep. 30, 2015. Deposits stood at $859.83 million as on Sep. 30, 2016, up 9.77 percent compared with $783.31 million on Sep. 30, 2015. Loans to deposits ratio was 80.22 percent for the quarter, up from 72.94 percent for the previous year quarter.
Investments stood at $883.03 million as on Sep. 30, 2016, up 254.83 percent or $634.17 million from year-ago. Shareholders equity stood at $88.29 million as on Sep. 30, 2016, up 8.17 percent or $6.67 million from year-ago.
Return on average assets moved up 24 basis points to 0.78 percent in the quarter from 0.54 percent in the last year period. At the same time, return on average equity increased 253 basis points to 8.52 percent in the quarter from 5.99 percent in the last year period.
Nonperforming assets moved down 24.17 percent or $2.46 million to $7.71 million on Sep. 30, 2016 from $10.16 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.78 percent in the quarter, down from 1.11 percent in the last year period.
Equity to assets ratio was 8.96 percent for the quarter, up from 8.94 percent for the previous year quarter. Book value per share was $9.30 for the quarter, up 8.14 percent or $0.70 compared to $8.60 for the same period last year.
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