National Commerce (NCOM) has reported 93.29 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $4.81 million, or $0.43 a share in the quarter, compared with $2.49 million, or $0.26 a share for the same period last year. Revenue during the quarter surged 42.29 percent to $20.51 million from $14.41 million in the previous year period. Net interest income for the quarter rose 37.67 percent over the prior year period to $16.88 million. Non-interest income for the quarter rose 70.08 percent over the last year period to $4 million.
National Commerce has made provision of $0.37 million for loan losses during the quarter, up 85.57 percent from $0.20 million in the same period last year.
Net interest margin improved 16 basis points to 4.18 percent in the quarter from 4.02 percent in the last year period. Efficiency ratio for the quarter improved to 60.50 percent from 67.72 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"I am pleased with the continued growth in our profitability in 2016, with another quarter of Return on Average Assets above 1.0% and year-to-date diluted earnings per share growth of 58%," said John H. Holcomb, III, chairman and chief executive officer of the Company. "Our asset quality, which is very important to the company’s ability to achieve its long term goals, also remains good, though we can never lose our focus on continued vigilance in that very critical component of our business. Our third quarter loan growth was below our long term expectations for ourselves, in part due to some expected payoffs, so we need to continue our focus on attracting additional high quality customer relationships to our bank."
Liabilities outpace assets growthTotal assets stood at $1,779.28 million as on Sep. 30, 2016, up 31.72 percent compared with $1,350.78 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,547.10 million as on Sep. 30, 2016, up 31.85 percent from $1,173.36 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $1,400.42 million as on Sep. 30, 2016, up 39.24 percent compared with $1,005.74 million on Sep. 30, 2015. Deposits stood at $1,499.88 million as on Sep. 30, 2016, up 31.36 percent compared with $1,141.84 million on Sep. 30, 2015. Investments stood at $110.56 million as on Sep. 30, 2016, up 113.63 percent or $58.81 million from year-ago. Shareholders equity stood at $232.17 million as on Sep. 30, 2016, up 30.86 percent or $54.75 million from year-ago.
Return on average assets moved up 33 basis points to 1.08 percent in the quarter from 0.75 percent in the last year period. At the same time, return on average equity increased 274 basis points to 8.36 percent in the quarter from 5.62 percent in the last year period.
Nonperforming assets to total loans was 0.39 percent in the quarter, down from 0.73 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.31 percent in the quarter, down from 0.55 percent in the last year period.
Capital ratios deteriorateNational Commerce witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.74 percent for the quarter, down from 10.39 percent for the previous year quarter. Equity to assets ratio was 13.05 percent for the quarter, down from 13.13 percent for the previous year quarter. Book value per share was $21.26 for the quarter, up 13.09 percent or $2.46 compared to $18.80 for the same period last year.
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