Park Sterling Corporation (PSTB) has reported a 41.22 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5.33 million, or $0.10 a share in the quarter, compared with $3.78 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.30 million, or $0.14 a share compared with $4.79 million or $0.11 a share, a year ago.
Revenue during the quarter surged 32.28 percent to $31.87 million from $24.09 million in the previous year period. Net interest income for the quarter rose 33.02 percent over the prior year period to $26.57 million. Non-interest income for the quarter rose 29.23 percent over the last year period to $5.84 million.
Park Sterling Corporation has made provision of $0.55 million for loan losses during the quarter, up 34.47 percent from $0.41 million in the same period last year.
Net interest margin improved 6 basis points to 3.58 percent in the quarter from 3.52 percent in the last year period.
"We are very pleased with Park Sterling's results for the 2016 fourth quarter and full year which continue to confirm the attractiveness of a regional community bank that delivers high quality products and services through exceptionally talented and experienced in-market banking professionals," said Jim Cherry, chief executive officer. "Our distinctive value proposition is clearly resonating with customers. They are embracing our capabilities and rewarding us with strong growth in loans, deposits and revenue, which enables us to deliver increasing earnings and returns for our shareholders, while offering an engaging work environment for our employees."
Liabilities outpace assets growth
Total assets stood at $3,255.40 million as on Dec. 31, 2016, up 29.48 percent compared with $2,514.26 million on Dec. 31, 2015. On the other hand, total liabilities stood at $2,899.55 million as on Dec. 31, 2016, up 30.05 percent from $2,229.56 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $2,400.06 million as on Dec. 31, 2016, up 38.51 percent compared with $1,732.75 million on Dec. 31, 2015. Deposits stood at $2,513.75 million as on Dec. 31, 2016, up 28.73 percent compared with $1,952.66 million on Dec. 31, 2015.
Loans to deposits ratio was 95.48 percent for the quarter, up from 88.74 percent for the previous year quarter.
Investments stood at $511.75 million as on Dec. 31, 2016, up 1.79 percent or $9 million from year-ago. Shareholders equity stood at $355.84 million as on Dec. 31, 2016, up 24.99 percent or $71.14 million from year-ago.
Return on average assets moved up 6 basis points to 0.66 percent in the quarter from 0.60 percent in the last year period. At the same time, return on average equity increased 63 basis points to 5.89 percent in the quarter from 5.26 percent in the last year period.
Nonperforming assets moved up 12.24 percent or $1.68 million to $15.38 million on Dec. 31, 2016 from $13.70 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.47 percent in the quarter, down from 0.54 percent in the last year period.
Capital ratios deteriorate
Park Sterling Corporation witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.98 percent for the quarter, down from 11 percent for the previous year quarter. Equity to assets ratio was 10.93 percent for the quarter, down from 11.32 percent for the previous year quarter. Book value per share was $6.75 for the quarter, up 4.01 percent or $0.26 compared to $6.49 for the same period last year.
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