SOURCE: Elmira Savings Bank

Elmira Savings Bank

January 22, 2014 12:47 ET

Elmira Savings Bank Reports 2013 Earnings

ELMIRA, NY--(Marketwired - Jan 22, 2014) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $5,054,000 for the twelve months ended December 31, 2013 compared to $5,213,000 for the same period in 2012. Income available to common shareholders after dividends on preferred stock increased 6.5% to $3,839,000 for the twelve months ended December 31, 2013 compared to $3,604,000 for the same period in 2012.

  • Diluted earnings per share was $1.40 per share for the twelve months ended December 31, 2013 compared to $1.37 per share for the same period in 2012. This represents an increase of 2.2% for the twelve months ended December 31, 2013 compared to the same period in 2012.

  • Return on average assets was .97% for the twelve months ended December 31, 2013 compared to .99% for the same period in 2012.

  • Return on average equity was 8.51% for the twelve months ended December 31, 2013 compared to 7.92% for the same period in 2012.

"We are pleased to report a third consecutive year of net income in excess of $5 million. In addition to strong earnings of $5.1 million, the retirement of the SBLF preferred shares allowed us to increase our earnings per common share by 2%, despite slightly lower net income," said Thomas M. Carr, President and COO. Carr continued, "In January 2013, we expanded our branch network in Steuben County by opening a full branch in Erwin, NY. We also expanded our mortgage operations into Broome County in September with the opening of a loan production office in Vestal, NY. Finally, our shareholders were rewarded during the year with $.84 of cash dividends, a 10% stock dividend, and a year ending share price of $25.20 per share."

Net Income

Net income totaled $5,054,000 for the twelve months ended December 31, 2013, a decrease of $159,000 or 3% from the $5,213,000 of net income recorded for the same period in 2012. This decrease was the net result of a decline in net interest income of $36,000, a decrease in noninterest income of $493,000, and an increase in noninterest expense of $918,000, offset by a reduction in tax expense of $1,140,000 and a reduction in the provision for loan losses of $148,000.

Net income totaled $1,119,000 for the three months ended December 31, 2013, a decrease of $180,000 or 14% from the $1,299,000 recorded for the same period in 2012. This decrease was the net result of a decline in noninterest income of $350,000 and an increase of $272,000 in noninterest expense, offset by an increase in net interest income of $33,000, a reduction in tax expense of $367,000, and a reduction in the provision for loan losses of $42,000.

Basic and diluted earnings per share for the twelve months ended December 31, 2013 were $1.47 per share and $1.40 per share compared to $1.44 per share and $1.37 per share for the same period in 2012. Basic and diluted earnings per share for the three months ended December 31, 2013 were $.32 per share and $.30 per share compared to $.35 per share and $.33 per share for the same period in 2012.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2013 was 3.25% compared to 3.34% for the same period in 2012. The yield on average earning assets was 4.37% for the twelve months ended December 31, 2013 compared to 4.64% for the same period in 2012. The average cost of interest-bearing liabilities was 1.31% for the twelve months ended December 31, 2013 compared to 1.47% for the same period in 2012.

The net interest margin for the three months ended December 31, 2013 was 3.22% compared to 3.25% for the same period in 2012. The average yield on earning assets was 4.31% for the three months ended December 31, 2013 compared to 4.45% for the same period in 2012. The average cost of interest-bearing liabilities was 1.28% for the three months ended December 31, 2013 compared to 1.37% for the same period in 2012.

Assets

Total assets decreased $22.6 million or 4% to $514.3 million at December 31, 2013 compared to $536.9 million at December 31, 2012. Loans receivable increased 3% to $389.1 million at December 31, 2013 compared to December 31, 2012. The available-for-sale investment portfolio decreased $3.4 million from December 31, 2012 to December 31, 2013.

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to .90% at December 31, 2013 from 1.02% at December 31, 2012. Net loan charge-offs to average loans for the twelve months ended December 31, 2013 were 0.06% compared to 0.01% for the twelve month period ended December 31, 2012. The allowance for loan losses was 0.99% of total loans at December 31, 2013 and December 31, 2012.

Liabilities

Deposits totaled $397.7 million at December 31, 2013, a decrease of $11.8 million or 3%. The $11.8 million decrease consists of a $14.8 million decrease in time deposits and a $1.5 million decrease in transaction accounts, partially offset by a $1.9 million increase in savings accounts, a $1.6 million increase in NOW accounts, and a $1.0 million increase in money market accounts. Borrowed funds increased by $2.5 million or 5%.

Shareholders' Equity

Shareholders' equity decreased $12.9 million to $54.0 million at December 31, 2013 compared to December 31, 2012. The decrease in shareholders' equity is attributable to the Bank redeeming $14.1 million of preferred stock issued to the United States Treasury Department through the Small Business Lending Fund. The current level of shareholders' equity equates to a book value per share of $16.64 at December 31, 2013, compared to $16.76 at December 31, 2012. Dividends paid to common shareholders were $0.21 and $0.84 for the three and twelve months ended December 31, 2013 compared to $0.20 and $0.77 for the same periods in 2012, representing increases of 5% for the three month period and 9% for the twelve month period.

Elmira Savings Bank, with $514.3 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a state-chartered bank with six offices in Chemung County, NY; three offices and a loan center in Tompkins County, NY; two offices in Steuben County, NY; one office in Cayuga County, NY; one office in Schuyler County; a loan center in Cortland County, NY; and a loan center in Broome County, NY.

Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that involve the risks and uncertainties, including the timely availability and acceptance of Bank products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Bank's regulatory reports.

                   
                   
ELMIRA SAVINGS BANK  
CONSOLIDATED BALANCE SHEET  
(unaudited)  
                   
(in thousands, except for share and per share data)   December 31,     December 31,        
    2013     2012     % Change  
ASSETS                      
                       
Cash and due from banks   $ 7,077     $ 39,641     -82.1 %
Federal funds sold and other short-term investments     564       684     -17.5 %
  Total cash and cash equivalents     7,641       40,325     -81.1 %
                       
Securities available for sale, at fair value     63,464       66,875     -5.1 %
Securities held to maturity - fair value $8,302 at December 31, 2013, and $5,853 at December 31, 2012     7,805       5,521     41.4 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     10,417       9,178     13.5 %
                       
Loans held for sale     1,847       3,167     -41.7 %
                       
Loans receivable     389,129       378,108     2.9 %
Less: Allowance for loan losses     3,834       3,740     2.5 %
  Net loans     385,295       374,368     2.9 %
                       
Premises and equipment, net     8,620       7,947     8.5 %
Bank-owned life insurance     12,387       11,988     3.3 %
Accrued interest receivable     1,454       1,529     -4.9 %
Intangible assets, net     210       316     -33.5 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,865       3,402     -15.8 %
  Total assets   $ 514,325     $ 536,936     -4.2 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 397,733     $ 409,565     -2.9 %
Borrowings     56,500       54,000     4.6 %
Other liabilities     6,067       6,462     -6.1 %
  Total liabilities     460,300       470,027     -2.1 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at December 31, 2013 and at 24,063 shares issued at December 31, 2012     9,700       23,763     -59.2 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,776,240 shares issued at December 31, 2013 and 2,454,840 shares issued at December 31, 2012     2,776       2,455     13.1 %
Additional paid-in capital     41,693       41,448     0.6 %
Retained earnings     2,485       868     186.3 %
Treasury stock, at cost - 116,268 shares at December 31, 2013 and 125,865 shares at December 31, 2012     (3,327 )     (3,548 )   -6.2 %
Accumulated other comprehensive income     644       1,872     -65.6 %
  Total Elmira Savings Bank shareholders' equity     53,971       66,858     -19.3 %
Noncontrolling interest     54       51     5.9 %
  Total shareholders' equity     54,025       66,909     -19.3 %
  Total liabilities and shareholders' equity   $ 514,325     $ 536,936     -4.2 %
                         
                         
   
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
                             
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
(in thousands, except for per share data)   2013   2012   % Change     2013   2012   % Change  
                                     
Interest and Dividend Income:                                    
  Interest and fees on loans   $ 4,409   $ 4,469   -1.3 %   $ 17,733   $ 18,114   -2.1 %
  Interest and dividends on securities                                    
    Taxable     454     476   -4.6 %     1,744     2,111   -17.4 %
    Non-taxable     204     184   10.9 %     776     760   2.1 %
    Total interest and dividend income     5,067     5,129   -1.2 %     20,253     20,985   -3.5 %
                                     
Interest Expense:                                    
  Interest on deposits     781     903   -13.5 %     3,224     3,712   -13.1 %
  Interest expense on borrowings     514     487   5.5 %     1,976     2,184   -9.5 %
    Total interest expense     1,295     1,390   -6.8 %     5,200     5,896   -11.8 %
Net interest income     3,772     3,739   0.9 %     15,053     15,089   -0.2 %
Provision for loan losses     -     42   -100.0 %     315     463   -32.0 %
Net interest income after provision for loan losses     3,772     3,697   2.0 %     14,738     14,626   0.8 %
                                     
Noninterest Income:                                    
  Service fees     359     297   20.9 %     1,357     1,242   9.3 %
  Net gain on sale of loans     536     953   -43.8 %     3,007     3,561   -15.6 %
  Gain on sale of securities     -     -   -       61     75   -18.7 %
  Other service fees     174     165   5.5 %     660     677   -2.5 %
  Earnings on bank-owned life insurance     92     95   -3.2 %     399     388   2.8 %
  Other     18     19   -5.3 %     73     107   -31.8 %
    Total noninterest income     1,179     1,529   -22.9 %     5,557     6,050   -8.1 %
                                     
Noninterest Expense:                                    
  Salaries and benefits     1,938     1,803   7.5 %     7,382     6,770   9.0 %
  Net occupancy     320     274   16.8 %     1,259     1,130   11.4 %
  Equipment     255     257   -0.8 %     1,022     946   8.0 %
  Marketing and public relations     143     177   -19.2 %     676     722   -6.4 %
  Professional fees     130     147   -11.6 %     674     643   4.8 %
  Other     787     643   22.4 %     2,849     2,733   4.2 %
    Total noninterest expense     3,573     3,301   8.2 %     13,862     12,944   7.1 %
Income before income taxes     1,378     1,925   -28.4 %     6,433     7,732   -16.8 %
Income taxes     254     621   -59.1 %     1,374     2,514   -45.3 %
Net income     1,124     1,304   -13.8 %     5,059     5,218   -3.0 %
Less: Net income attributable to noncontrolling interest     5     5   -       5     5   -  
                                     
Net income attibutable to Elmira Savings Bank     1,119     1,299   -13.9 %     5,054     5,213   -3.1 %
                                     
Dividend on preferred stock     277     406   -31.8 %     1,215     1,609   -24.5 %
Income available to common shareholders   $ 842   $ 893   -5.7 %   $ 3,839   $ 3,604   6.5 %
                                     
                                     
Basic earnings per share   $ 0.32   $ 0.35   -8.6 %   $ 1.47   $ 1.44   2.1 %
                                     
Diluted earnings per share   $ 0.30   $ 0.33   -9.1 %   $ 1.40   $ 1.37   2.2 %
                                     
Weighted average shares outstanding - basic   2,638,844   2,527,056   4.4 %   2,617,073   2,505,300   4.5 %
                                     
Weighted average shares outstanding - diluted   2,763,867   2,666,307   3.7 %   2,745,934   2,628,139   4.5 %
                                     
Dividends per share   $ 0.21   $ 0.20   5.0 %   $ 0.84   $ 0.77   9.1 %
                                     
                                     
Per share data has been restated to reflect the 10% stock dividend paid on December 27, 2013.  
   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    December 31, 2013     December 31, 2012  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 387,571   $ 4,409   4.53 %   $ 376,032   $ 4,469   4.73 %
Short-term investments     1,988     -   0.03       1,669     -   0.04  
Securities     78,281     658   3.35       80,965     660   3.26  
Total interest-earning assets     467,840     5,067   4.31       458,666     5,129   4.45  
                                     
Noninterest-earning assets     52,676                 73,992            
                                     
TOTAL ASSETS   $ 520,516               $ 532,658            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 336,584   $ 781   0.92     $ 346,611   $ 903   1.04  
Borrowings     61,266     514   3.28       54,000     487   3.53  
Total interest-bearing liabilities     397,850     1,295   1.28       400,611     1,390   1.37  
                                     
Noninterest-bearing liabilities     65,349                 65,302            
Shareholders' equity     57,317                 66,745            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 520,516               $ 532,658            
Interest rate spread               3.03 %               3.08 %
Net interest income/margin         $ 3,772   3.22 %         $ 3,739   3.25 %
                                     
                                     
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Twelve Months Ended  
    December 31, 2013     December 31, 2012  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 382,403   $ 17,733   4.63 %   $ 362,986   $ 18,114   4.99 %
Short-term investments     2,158     1   0.03       1,371     -   0.04  
Securities     78,532     2,519   3.21       87,539     2,871   3.28  
Total interest-earning assets     463,093     20,253   4.37       451,896     20,985   4.64  
                                     
Noninterest-earning assets     57,315                 74,451            
                                     
TOTAL ASSETS   $ 520,408               $ 526,347            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 338,347   $ 3,224   0.95     $ 340,236   $ 3,712   1.09  
Borrowings     56,626     1,976   3.44       59,623     2,184   3.66  
Total interest-bearing liabilities     394,973     5,200   1.31       399,859     5,896   1.47  
                                     
Noninterest-bearing liabilities     66,014                 60,633            
Shareholders' equity     59,421                 65,855            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 520,408               $ 526,347            
Interest rate spread               3.06 %               3.17 %
Net interest income/margin         $ 15,053   3.25 %         $ 15,089   3.34 %
                                     
                                     
       
    Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   12/31/2013   9/30/2013   6/30/2013   3/31/2013   12/31/2012  
                                 
Operating Data                                
                                 
  Net income   $ 1,119   $ 1,369   $ 1,374   $ 1,192   $ 1,299  
  Net interest income     3,772     3,770     3,712     3,799     3,739  
  Provision for loan losses     -     50     85     180     42  
  Net security gains     -     -     -     61     -  
  Non-interest income, ex. Net security gains     1,179     1,474     1,419     1,424     1,529  
  Non-interest expense     3,573     3,428     3,485     3,376     3,301  
                                   
Performance Statistics                                
                                 
  Net interest margin     3.22 %   3.23 %   3.24 %   3.32 %   3.25 %
  Annualized return on average assets     0.85 %   1.05 %   1.07 %   0.91 %   0.97 %
  Annualized return on average equity     7.75 %   9.55 %   9.67 %   7.26 %   7.72 %
  Annualized net loan charge-offs to avg loans     -0.02 %   0.04 %   0.00 %   0.21 %   0.03 %
  Net charge-offs (recoveries)     (15 )   40     -     196     31  
  Efficiency ratio     72.2 %   65.4 %   67.9 %   63.9 %   62.7 %
                                   
Per Share Data                                
                                 
  Basic earnings per share   $ 0.32   $ 0.42   $ 0.42   $ 0.31   $ 0.35  
  Diluted earnings per share     0.30     0.40     0.40     0.29     0.33  
  Dividend declared per share     0.21     0.21     0.21     0.21     0.20  
  Book value     16.64     16.62     16.44     16.47     16.76  
  Common stock price:                                
    High     28.45     22.73     23.93     23.05     21.50  
    Low     20.15     19.30     18.18     20.67     16.80  
    Close     25.20     22.07     19.59     23.05     20.67  
  Weighted average common shares:                                
    Basic     2,639     2,626     2,620     2,569     2,527  
    Fully diluted     2,764     2,745     2,741     2,718     2,666  
  End-of-period common shares:                                
    Issued     2,776     2,775     2,771     2,761     2,700  
    Treasury     116     116     116     116     126  
                                 
Share and per share data has been restated to reflect the 10% stock dividend paid on December 27, 2013.  
                                 
Financial Condition Data:                                
General                                
  Total assets   $ 514,325   $ 519,747   $ 516,137   $ 510,915   $ 536,936  
  Loans, net     385,295     381,298     380,252     370,753     374,368  
  Intangibles     12,530     12,555     12,582     12,609     12,636  
  Total deposits     397,733     396,600     396,993     395,091     409,565  
                                   
    Noninterest-bearing     59,886     62,616     61,018     58,118     61,444  
                                     
    Savings     60,924     60,710     61,918     60,177     59,034  
    NOW     77,736     72,076     71,894     71,472     76,133  
    Money Market     21,130     22,465     20,826     19,222     20,131  
    Time deposits     178,057     178,733     181,337     186,102     192,823  
    Total interest-bearing deposits     337,847     333,984     335,975     336,973     348,121  
                                     
  Shareholders' equity     54,025     57,290     56,745     56,677     66,909  
                                   
Asset Quality                                
                                 
  Non-performing assets   $ 3,592   $ 3,302   $ 3,575   $ 3,826   $ 3,986  
  Non-performing assets to total assets     0.70 %   0.64 %   0.69 %   0.75 %   0.74 %
  Allowance for loan losses     3,834     3,819     3,809     3,724     3,740  
  Allowance for loan losses to total loans     0.99 %   0.99 %   0.99 %   0.99 %   0.99 %
  Allowance for loan losses to non-performing loans     109.73 %   115.66 %   106.55 %   100.95 %   96.87 %
  Non-performing loans to total loans     0.90 %   0.86 %   0.93 %   0.99 %   1.02 %
                                 
Capitalization                                
                                 
  Shareholders' equity to total assets     10.50 %   11.02 %   10.99 %   11.09 %   12.41 %
                                   

Contact Information

  • For further information contact:
    Thomas M. Carr
    President & COO
    Elmira Savings Bank
    333 East Water Street
    Elmira, New York 14901
    (607) 735-8660
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