SOURCE: Elmira Savings Bank

Elmira Savings Bank

January 21, 2015 11:49 ET

Elmira Savings Bank Reports 2014 Earnings

ELMIRA, NY--(Marketwired - Jan 21, 2015) -  Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,031,000 and $3,665,000 for the three and twelve months ended December 31, 2014 compared to $1,119,000 and $5,054,000 for the same periods in 2013. Net income for the twelve months ended December 31, 2014 includes the effects of a one-time expense of $820,000 related to retirement benefits.

  • Diluted earnings per share were $.29 per share and $.99 per share for the three and twelve months ended December 31, 2014 compared to $.30 per share and $1.40 per share for the same periods in 2013.

  • Return on average assets (annualized) was .76% and .70% for the three and twelve months ended December 31, 2014 compared to .85% and .97% for the same periods in 2013.

  • Return on average equity (annualized) was 7.34% and 6.60% for the three and twelve months ended December 31, 2014 compared to 7.75% and 8.51% for the same periods in 2013.

Net Income

Net income totaled $1,031,000 for the three months ended December 31, 2014, a decrease of $88,000 or 8% from the $1,119,000 recorded for the same period in 2013. This decrease was the net result of a decrease in noninterest income of $140,000 and an increase in the provision for loan losses of $140,000, offset by an increase in net interest income of $246,000 and a decrease in noninterest expense of $167,000.

Net income totaled $3,665,000 for the twelve months ended December 31, 2014, a decrease of $1,389,000 or 28% from the $5,054,000 of net income recorded for the same period in 2013. This decrease was the net result of a decrease in noninterest income of $799,000, an increase in noninterest expense of $641,000, and an increase in income tax expense of $216,000, offset by an increase in net interest income of $359,000.

The increase in noninterest expense for the twelve months ended December 31, 2014 includes $820,000 of one-time expense recognized in the third quarter of 2014. This one-time expense was for the estimated value of an executive retirement compensation agreement.

"The year 2014 was a transitional period for the leadership of the company," said Thomas M. Carr, President and CEO. Mr. Carr continued, "As we look forward into 2015, we are focused on growing our company and to our expansion into Watkins Glen, NY, with a full-service branch."

Basic and diluted earnings per share for the twelve months ended December 31, 2014 were $1.03 per share and $.99 per share compared to $1.47 per share and $1.40 per share for the same periods in 2013. Basic and diluted earnings per share for the three months ended December 31, 2014 were $.30 per share and $.29 per share compared to $.32 per share and $.30 per share for the same periods in 2013.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2014 was 3.23% compared to 3.25% for the same period in 2013. The yield on average earning assets was 4.24% for the twelve months ended December 31, 2014 compared to 4.37% for the same period in 2013. The average cost of interest-bearing liabilities was 1.22% for the twelve months ended December 31, 2014 compared to 1.31% for the same period in 2013.

The net interest margin for the three months ended December 31, 2014 was 3.24% compared to 3.22% for the same period in 2013. The average yield on earning assets was 4.23% for the three months ended December 31, 2014 compared to 4.31% for the same period in 2013. The average cost of interest-bearing liabilities was 1.18% for the three months ended December 31, 2014 compared to 1.28% for the same period in 2013.

Assets

Total assets increased $31.6 million or 6.2% to $546.0 million at December 31, 2014 compared to $514.3 million at December 31, 2013. Loans receivable increased 7.3% to $417.4 million at December 31, 2014 compared to December 31, 2013. The available-for-sale investment portfolio increased $2.2 million from December 31, 2013 to December 31, 2014.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 1.13% at December 31, 2014 from .90% at December 31, 2013. Net loan charge-offs to average loans for the twelve months ended December 31, 2014 of 0.07% increased from 0.06% for the twelve months ended December 31, 2013. The allowance for loan losses was 0.95% of total loans at December 31, 2014 and 0.99% of total loans at December 31, 2013.

Liabilities

Deposits total $422.6 million at December 31, 2014, an increase of $24.8 million or 6.2%. The $24.8 million increase consists of a $17.8 million increase in time deposits, a $4.4 million increase in savings accounts, a $2.1 million increase in noninterest-bearing accounts, and a $1.2 million increase in NOW accounts, partially offset by a $.6 million decrease in money market accounts. Borrowed funds increased by $5.5 million or 6.2%.

Shareholders' Equity

Shareholders' equity increased $1.5 million to $55.5 million at December 31, 2014 compared to December 31, 2013. The current level of shareholders' equity equates to a book value per share of $16.91 at December 31, 2014, compared to $16.64 at December 31, 2013. Dividends paid to common shareholders were $0.23 and $0.92 for the three and twelve months ended December 31, 2014 compared to $0.21 and $0.84 for the same periods in 2013, representing increases of 9.5% for both the three and twelve month periods. 

Elmira Savings Bank, with $546.0 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,        
    2014     2013     % Change  
ASSETS                      
                       
Cash and due from banks   $ 7,959     $ 7,077     12.5 %
Federal funds sold and other short-term investments     606       564     7.4 %
  Total cash and cash equivalents     8,565       7,641     12.1 %
                       
Securities available for sale, at fair value     65,624       63,464     3.4 %
Securities held to maturity - fair value $7,641 at December 31, 2014, and $8,302 at December 31, 2013     7,389       7,805     -5.3 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     11,182       10,417     7.3 %
                       
Loans held for sale     787       1,847     -57.4 %
                       
Loans receivable     417,359       389,129     7.3 %
Less: Allowance for loan losses     3,974       3,834     3.7 %
  Net loans     413,385       385,295     7.3 %
                       
Premises and equipment, net     9,475       8,620     9.9 %
Bank-owned life insurance     12,790       12,387     3.3 %
Accrued interest receivable     1,566       1,454     7.7 %
Intangible assets, net     125       210     -40.5 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,761       2,865     -3.6 %
  Total assets   $ 545,969     $ 514,325     6.2 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 422,561     $ 397,733     6.2 %
Borrowings     62,000       56,500     9.7 %
Other liabilities     5,915       6,067     -2.5 %
  Total liabilities     490,476       460,300     6.6 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at December 31, 2014 and at December 31, 2013     9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,809,364 shares issued at December 31, 2014 and 2,776,240 shares issued at December 31, 2013     2,809       2,776     1.2 %
Additional paid-in capital     42,365       41,693     1.6 %
Retained earnings     2,769       2,485     11.4 %
Treasury stock, at cost - 104,418 shares at December 31, 2014 and 116,268 shares at December 31, 2013     (3,053 )     (3,327 )   -8.2 %
Accumulated other comprehensive income     849       644     31.8 %
  Total Elmira Savings Bank shareholders' equity     55,439       53,971     2.7 %
Noncontrolling interest     54       54     0.0 %
  Total shareholders' equity     55,493       54,025     2.7 %
  Total liabilities and shareholders' equity   $ 545,969     $ 514,325     6.2 %
                       
                       
                       
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) 2014   2013   % Change     2014   2013   % Change  
                                   
Interest and dividend income:                                  
  Interest and fees on loans $ 4,598   $ 4,409   4.3 %   $ 17,709   $ 17,733   -0.1 %
  Interest and dividends on securities                                  
    Taxable   390     454   -14.1 %     1,659     1,744   -4.9 %
    Non-taxable   270     204   32.4 %     899     776   15.9 %
    Total interest and dividend income   5,258     5,067   3.8 %     20,267     20,253   0.1 %
                                   
Interest expense:                                  
  Interest on deposits   746     781   -4.5 %     2,986     3,224   -7.4 %
  Interest on borrowings   494     514   -3.9 %     1,869     1,976   -5.4 %
    Total interest expense   1,240     1,295   -4.2 %     4,855     5,200   -6.6 %
Net interest income   4,018     3,772   6.5 %     15,412     15,053   2.4 %
Provision for loan losses   140     -   -       407     315   29.2 %
Net interest income after provision for loan losses   3,878     3,772   2.8 %     15,005     14,738   1.8 %
                                   
Noninterest income:                                  
  Service fees   363     359   1.1 %     1,437     1,357   5.9 %
  Gain on sale of loans held for sale   357     536   -33.4 %     1,633     3,007   -45.7 %
  Gain on sale of securities   -     -   -       422     61   591.8 %
  Other service fees   177     174   1.7 %     687     660   4.1 %
  Earnings on bank-owned life insurance   96     92   4.3 %     404     399   1.3 %
  Other   46     18   155.6 %     175     73   139.7 %
    Total noninterest income   1,039     1,179   -11.9 %     4,758     5,557   -14.4 %
                                   
Noninterest expense:                                  
  Salaries and benefits   1,609     1,938   -17.0 %     7,692     7,382   4.2 %
  Net occupancy   352     320   10.0 %     1,416     1,259   12.5 %
  Equipment   249     255   -2.4 %     1,012     1,022   -1.0 %
  Marketing and public relations   270     143   88.8 %     884     676   30.8 %
  Professional fees   167     130   28.5 %     690     674   2.4 %
  Other   759     787   -3.6 %     2,809     2,849   -1.4 %
    Total noninterest expense   3,406     3,573   -4.7 %     14,503     13,862   4.6 %
Income before income taxes   1,511     1,378   9.7 %     5,260     6,433   -18.2 %
Income taxes   476     254   87.4 %     1,590     1,374   15.7 %
Net income   1,035     1,124   -7.9 %     3,670     5,059   -27.5 %
Less: Net income attributable to noncontrolling interest   5     5   -       5     5   -  
                                   
Net income attibutable to Elmira Savings Bank   1,031     1,119   -7.9 %     3,665     5,054   -27.5 %
                                   
Dividend on preferred stock   225     277   -18.8 %     900     1,215   -25.9 %
Income available to common shareholders $ 805   $ 842   -4.4 %   $ 2,765   $ 3,839   -28.0 %
                                   
                                   
Basic earnings per share $ 0.30   $ 0.32   -6.3 %   $ 1.03   $ 1.47   -29.9 %
                                   
Diluted earnings per share $ 0.29   $ 0.30   -3.3 %   $ 0.99   $ 1.40   -29.3 %
                                   
Weighted average shares outstanding - basic   2,692,833     2,638,844   2.0 %     2,677,252     2,617,073   2.3 %
                                   
Weighted average shares outstanding - diluted   2,807,591     2,763,867   1.6 %     2,799,670     2,745,934   2.0 %
                                   
Dividends per share $ 0.23   $ 0.21   9.5 %   $ 0.92   $ 0.84   9.5 %
                                   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Twelve Months Ended  
    December 31, 2014     December 31, 2013  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 398,416   $ 17,709   4.44 %   $ 382,403   $ 17,733   4.63 %
Short-term investments     1,069     1   0.02       2,158     1   0.03  
Securities     77,349     2,557   3.31       78,532     2,519   3.21  
Total interest-earning assets     476,834     20,267   4.24       463,093     20,253   4.37  
                                     
Noninterest-earning assets     44,418                 57,315            
                                     
TOTAL ASSETS   $ 521,252               $ 520,408            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 339,720   $ 2,986   0.88     $ 338,347   $ 3,224   0.95  
Borrowings     60,263     1,869   3.06       56,626     1,976   3.44  
Total interest-bearing liabilities     399,983     4,855   1.21       394,973     5,200   1.31  
                                     
Noninterest-bearing liabilities     65,727                 66,014            
Shareholders' equity     55,542                 59,421            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 521,252               $ 520,408            
Interest rate spread               3.03 %               3.06 %
Net interest income/margin         $ 15,412   3.23 %         $ 15,053   3.25 %
                                     
                                     
                                     
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    December 31, 2014     December 31, 2013  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 413,733   $ 4,598   4.42 %   $ 387,571   $ 4,409   4.53 %
Short-term investments     1,318     -   0.02       1,988     -   0.03  
Securities     79,810     660   3.30       78,281     658   3.35  
Total interest-earning assets     494,861     5,258   4.23       467,840     5,067   4.31  
                                     
Noninterest-earning assets     45,947                 52,676            
                                     
TOTAL ASSETS   $ 540,808               $ 520,516            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 348,115   $ 746   0.85     $ 336,584   $ 781   0.92  
Borrowings     68,105     494   2.85       61,266     514   3.28  
Total interest-bearing liabilities     416,220     1,240   1.18       397,850     1,295   1.28  
                                     
Noninterest-bearing liabilities     68,841                 65,349            
Shareholders' equity     55,747                 57,317            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 540,808               $ 520,516            
Interest rate spread               3.05 %               3.03 %
Net interest income/margin         $ 4,018   3.24 %         $ 3,772   3.22 %
                                     
                                     
                                     
  Quarter Ended  
(Dollars in Thousands, Except Per Share Data) 12/31/2014     9/30/2014     6/30/2014     3/31/2014     12/31/2013  
                                       
Operating Data                                      
                                       
  Net income $ 1,031     $ 475     $ 1,099     $ 1,060     $ 1,119  
  Net interest income   4,018       3,802       3,719       3,873       3,772  
  Provision for loan losses   140       138       75       54       -  
  Net security gains   -       -       205       216       -  
  Non-interest income, ex. Net security gains   1,039       1,155       1,069       1,073       1,179  
  Non-interest expense   3,406       4,190       3,344       3,563       3,573  
                                       
Performance Statistics                                      
                                       
  Net interest margin   3.24 %     3.18 %     3.19 %     3.31 %     3.22 %
  Annualized return on average assets   0.76 %     0.36 %     0.86 %     0.84 %     0.85 %
  Annualized return on average equity   7.34 %     3.36 %     7.95 %     7.82 %     7.75 %
  Annualized net loan charge-offs to avg loans   0.09 %     -0.01 %     0.15 %     0.04 %     -0.02 %
  Net charge-offs (recoveries)   94       (7 )     143       38       (15 )
  Efficiency ratio   67.4 %     84.5 %     67.0 %     69.0 %     72.2 %
                                       
Per Share Data                                      
                                       
  Basic earnings per share $ 0.30     $ 0.09     $ 0.33     $ 0.31     $ 0.32  
  Diluted earnings per share   0.29       0.09       0.31       0.30       0.30  
  Dividend declared per share   0.23       0.23       0.23       0.23       0.21  
  Book value   16.91       16.76       16.87       16.78       16.64  
  Common stock price:                                      
    High   23.00       24.54       24.78       26.97       28.45  
    Low   20.50       20.16       21.92       22.25       20.15  
    Close   23.00       22.25       24.50       24.49       25.20  
  Weighted average common shares:                                      
    Basic   2,693       2,684       2,674       2,657       2,639  
    Fully diluted   2,808       2,803       2,798       2,790       2,764  
  End-of-period common shares:                                      
    Issued   2,809       2,809       2,799       2,787       2,776  
    Treasury   104       104       104       104       116  
                                       
                                       
Financial Condition Data:                                      
General                                      
  Total assets $ 545,969     $ 533,726     $ 515,053     $ 513,938     $ 514,325  
  Loans, net   413,385       406,168       391,611       388,295       385,295  
  Intangibles   12,445       12,464       12,486       12,508       12,530  
  Total deposits   422,561       405,681       399,219       394,951       397,733  
                                         
    Noninterest-bearing   62,019       68,871       61,221       57,059       59,886  
                                           
    Savings   65,287       62,898       63,433       61,655       60,924  
    NOW   78,920       75,246       73,116       75,789       77,736  
    Money Market   20,512       21,498       22,702       21,540       21,130  
    Time deposits   195,823       177,168       178,747       178,908       178,057  
    Total interest-bearing deposits   360,542       336,810       337,998       337,892       337,847  
                                         
  Shareholders' equity   55,493       55,088       55,202       54,763       54,025  
                                       
Asset Quality                                      
                                       
  Non-performing assets $ 4,699     $ 4,575     $ 4,281     $ 3,368     $ 3,592  
  Non-performing assets to total assets   0.86 %     0.86 %     0.83 %     0.66 %     0.70 %
  Allowance for loan losses   3,974       3,928       3,783       3,851       3,834  
  Allowance for loan losses to total loans   0.95 %     0.96 %     0.96 %     0.98 %     0.99 %
  Allowance for loan losses to non-performing loans   84.57 %     88.61 %     89.90 %     119.23 %     109.73 %
  Non-performing loans to total loans   1.13 %     1.08 %     1.06 %     0.82 %     0.90 %
                                       
Capitalization                                      
                                       
  Shareholders' equity to total assets   10.16 %     10.32 %     10.72 %     10.66 %     10.50 %

Contact Information

  • For further information contact:
    Thomas M. Carr
    President & CEO
    Elmira Savings Bank
    333 East Water Street
    Elmira, New York 14901
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