First United Corporation (FUNC) has reported a 17.30 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $2.28 million, or $0.29 a share in the quarter, compared with $1.95 million, or $0.20 a share for the same period last year.
Revenue during the quarter grew 6.47 percent to $12.99 million from $12.20 million in the previous year period. Net interest income for the quarter rose 3.08 percent over the prior year period to $9.49 million. Non-interest income for the quarter rose 8.59 percent over the last year period to $3.79 million.
First United Corporation has made provision of $0.29 million for loan losses during the quarter, down 41.20 percent from $0.50 million in the same period last year.
Net interest margin improved 14 basis points to 3.21 percent in the quarter from 3.07 percent in the last year period. Efficiency ratio for the quarter improved to 73.10 percent from 81 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"During this quarter, we unveiled our new brand which has received a very positive response from our associates, customers and communities. We believe our new look and feel positions us well for future success as it better aligns the bank and our value system with our customer preferences as we strive to be relevant to our changing market demographics. We are pleased that we were able to rebrand with little additional cost to our existing marketing and operational budgets. Our third quarter core earnings continue to show a positive trend as we remain focused on increasing our margin and controlling costs." stated Carissa L. Rodeheaver, Chairman of the Board, Chief Executive Officer and President.
Assets, liabilities remain almost stable
Total assets stood at $1,338.19 million as on Sep. 30, 2016, up 1.35 percent compared with $1,320.32 million on Sep. 30, 2015.
Deposits outpace loan growth
Deposits stood at $1,019.18 million as on Sep. 30, 2016, up 2.29 percent compared with $996.34 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $221.65 million or 21.75 percent of total deposits on Sep. 30, 2016, compared with $214.98 million or 21.58 percent of total deposits on Sep. 30, 2015.
Investments stood at $246.42 million as on Sep. 30, 2016, down 15.68 percent or $45.83 million from year-ago. Shareholders equity stood at $114.77 million as on Sep. 30, 2016, up 0.15 percent or $0.18 million from year-ago.
Return on average assets moved up 14 basis points to 0.59 percent in the quarter from 0.45 percent in the last year period. At the same time, return on average equity increased 152 basis points to 6.86 percent in the quarter from 5.34 percent in the last year period.
Tier-1 leverage ratio stood at 10.77 percent for the quarter, up from 10.54 percent for the previous year quarter. Book value per share was $15.12 for the quarter, up 11.83 percent or $1.60 compared to $13.52 for the same period last year.
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