Bear State Financial sees almost 58% rise in net income in first nine months of 2016
by October 20, 2016 11:57 am 129 views
Little Rock-based Bear State Financial reported Wednesday (Oct. 20) that third quarter net income was up 47.5% and net income for the first nine months of the year is up 57.5%, with much of the increase coming from loan growth and the October 2015 acquisition of Metropolitan National Bank.
Third quarter net income was $4.741 million, up 47.5% compared to $3.213 million in the same period of 2015. Total revenue for the quarter was $21.168 million, well ahead of the $15.538 million in the third quarter of 2015.
Net income in the first nine months of the year was $12.626 million, up 57.5% compared to the same period in 2015. Revenue in the nine months was $62.682 million, up 34.5% compared to the $46.585 million in the same period of 2015.
Bear State Bank operates 48 branches and four loan production offices throughout Arkansas, southwest Missouri and southeast Oklahoma.
“Bear State crossed the $2 billion mark in total assets and delivered solid financial results in the third quarter,” Mark McFatridge, president and CEO of Bear State Financial said in the earnings report issued Wednesday before the markets opened. “The Bank’s third quarter performance was highlighted by growth of over $30 million in total loans and $12 million in deposits along with record results in the mortgage banking business. We remain focused on carrying out our core initiatives which includes diversifying the make-up of our commercial loan portfolio. Thanks to this effort, commercial and industrial (C&I) loans now represent over 20% of our total loans outstanding. C&I relationships help lead the broadening of our revenue streams with increased non-interest income and core deposits.”
Net interest income for the third quarter was $16.8 million, up from the $12.2 million for the same period in 2015. Net interest income for the nine months was $50.4 million, well ahead of the $36.8 million for the same period in 2015.
Total noninterest income for the third quarter was $4.3 million, up 31% from the $3.3 million for the same period in 2015. Total noninterest income of $12.3 million for the nine months was up 25% from the $9.8 million for the same period in 2015.
Total assets were $2.01 billion at Sept. 30, 2016, a 37% increase compared to $1.47 billion at Sept. 30, 2015. Total loans were $1.52 billion at Sept. 30, 2016, an increase of $438 million, or 41% compared to Sept. 30, 2015. Total deposits were $1.65 billion at Sept. 30, 2016, a 37% increase compared to $1.21 billion at Sept. 30, 2015.
“The increases in total assets, loans and deposits were primarily due to the acquisition of Metropolitan National Bank (“MNB”) on October 1, 2015,” the company noted in the earnings report.
Bear State also improved its cash position. Cash and short-term holdings at the end of September totaled $86.887 million, up 34.5% compared to $46.585 million as of Dec. 31.
The thinly traded shares of Bear State (NASDAQ: BSF) opened Wednesday trading at $8.73. During the past 52 weeks the share price has ranged from an $11.39 high to a $7.61 low.