SOURCE: Elmira Savings Bank

Elmira Savings Bank

January 25, 2017 14:27 ET

Elmira Savings Bank Reports 2016 Earnings

NEW YORK, NY--(Marketwired - Jan 25, 2017) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,042,000 and $4,337,000 for the three and twelve months ended December 31, 2016 compared to $1,036,000 and $4,122,000 for the same periods in 2015.

  • Diluted earnings per share were $.30 per share and $1.25 per share for the three and twelve months ended December 31, 2016 compared to $.30 per share and $1.17 per share for the same periods in 2015.

  • Return on average assets (annualized) was .73% and .76% for the three and twelve months ended December 31, 2016 compared to .73% for both of the same periods in 2015.

  • Return on average equity (annualized) was 7.38% and 7.77% for the three and twelve months ended December 31, 2016 compared to 7.46% and 7.43% for the same periods in 2015.

Net Income

Net income totaled $1,042,000 for the three months ended December 31, 2016, an increase of $6,000 or 0.6% from the $1,036,000 recorded for the same period in 2015. This increase was the net result of a decrease in the provision for loan losses of $95,000, an increase in net interest income of $27,000, and an increase in noninterest income of $13,000, offset by an increase in noninterest expense of $111,000 and an increase in income tax expense of $18,000.

Net income totaled $4,337,000 for the twelve months ended December 31, 2016, an increase of $215,000 or 5.2% from the $4,122,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in net interest income of $886,000, an increase in noninterest income of $509,000, and a decrease in the provision for loan losses of $143,000, offset by an increase in noninterest expense of $1.0 million and an increase in income tax expense of $314,000.

"The company has continued to make progress in 2016. Year over year, we have increased our noninterest income by 9%, our net interest income by 6%, and have expanded our net interest margin by 5%" said Thomas M. Carr, President and CEO. Carr continued, "We are pleased with the increase in core earnings supported by strong mortgage loan origination volume and a 7% growth in deposits."

Basic and diluted earnings per share for the twelve months ended December 31, 2016 were $1.26 per share and $1.25 per share compared to $1.19 per share and $1.17 per share for the same period in 2015. Both basic and diluted earnings per share for the three months ended December 31, 2016 were $.30 per share and $.30 per share for both basic and diluted earnings per share for the same period in 2015.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2016 was 3.21% compared to 3.07% for the same period in 2015. The yield on average earning assets was 4.05% for the twelve months ended December 31, 2016 compared to 4.06% for the same period in 2015. The average cost of interest-bearing liabilities was 1.00% for the twelve months ended December 31, 2016 compared to 1.16% for the same period in 2015.

The net interest margin for the three months ended December 31, 2016 was 3.23% compared to 3.19% for the same period in 2015. The average yield on earning assets was 4.04% for the three months ended December 31, 2016 compared to 4.09% for the same period in 2015. The average cost of interest-bearing liabilities was 0.95% for the three months ended December 31, 2016 compared to 1.07% for the same period in 2015.

Assets

Total assets increased $12.1 million or 2.2% to $573.5 million at December 31, 2016 compared to $561.3 million at December 31, 2015. Loans receivable increased 1.0% to $455.9 million at December 31, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $10.1 million from December 31, 2015 to December 31, 2016.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.11% at December 31, 2016 compared to 1.05% at December 31, 2015. Net loan charge-offs to average loans for the twelve months ended December 31, 2016 of 0.08% decreased from 0.11% for the twelve months ended December 31, 2015. The allowance for loan losses was 0.94% of total loans at December 31, 2016 and 0.92% of total loans at December 31, 2015.

Liabilities

Deposits total $469.5 million at December 31, 2016, an increase of $29.1 million or 6.6%. The $29.1 million increase consists of a $17.8 million increase in time deposits, a $5.5 million increase in money market accounts, a $3.7 million increase in savings accounts, and a $3.4 million increase in noninterest-bearing accounts, offset by a $1.3 million decrease in interest-bearing transaction accounts. Borrowed funds decreased by $17.5 million or 29.4%.

Shareholders' Equity

Shareholders' equity increased $1.0 million to $55.7 million at December 31, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.74 at December 31, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.92 for the three and twelve months ended both December 31, 2016 and 2015.

Elmira Savings Bank, with $573.5 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; 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,        
    2016     2015     % Change  
ASSETS                      
                       
Cash and due from banks   $ 24,195     $ 5,352     352.1 %
Federal funds sold and other short-term investments     99       102     -2.9 %
  Total cash and cash equivalents     24,294       5,454     345.4 %
                       
Securities available for sale, at fair value     32,581       42,709     -23.7 %
Securities held to maturity - fair value $8,679 at December 31, 2016 and $9,010 at December 31, 2015    
8,519
     
9,003
   
-5.4
%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     9,811       11,108     -11.7 %
                       
Loans held for sale     3,597       3,630     -0.9 %
                       
Loans receivable     455,931       451,368     1.0 %
Less: Allowance for loan losses     4,263       4,148     2.8 %
  Net loans     451,668       447,220     1.0 %
                       
Premises and equipment, net     12,634       12,130     4.2 %
Bank-owned life insurance     13,592       13,188     3.1 %
Accrued interest receivable     1,552       1,541     0.7 %
Intangible assets, net     20       61     -67.2 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,862       2,980     -4.0 %
  Total assets   $ 573,450     $ 561,344     2.2 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 469,547     $ 440,472     6.6 %
Borrowings     42,000       59,525     -29.4 %
Other liabilities     6,180       6,576     -6.0 %
  Total liabilities     517,727       506,573     2.2 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at December 31, 2016 and at December 31, 2015    
9,700
     
9,700
   
0.0
%
Common stock, $1 par value; authorized 5,000,000 shares; 2,844,670 shares issued at December 31, 2016 and 2,820,745 shares issued at December 31, 2015    
2,845
     
2,821
   
0.9
%
Additional paid-in capital     41,644       41,243     1.0 %
Retained earnings     4,407       3,488     26.3 %
Treasury stock, at cost - 98,118 shares at December 31, 2016 and December 31, 2015    
(2,907
)    
(2,907
)  
0.0
%
Accumulated other comprehensive income     (19 )     373     -105.1 %
  Total Elmira Savings Bank shareholders' equity     55,670       54,718     1.7 %
Noncontrolling interest     53       53     0.0 %
  Total shareholders' equity     55,723       54,771     1.7 %
  Total liabilities and shareholders' equity   $ 573,450     $ 561,344     2.2 %
   
   
   
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)   2016     2015   % Change     2016   2015   % Change  
                                       
Interest and dividend income:                                      
  Interest and fees on loans   $ 4,751     $ 4,762   -0.2 %   $ 19,056   $ 18,418   3.5 %
  Interest and dividends on securities                                      
    Taxable     242       304   -20.4 %     1,000     1,367   -26.8 %
    Non-taxable     205       240   -14.6 %     832     949   -12.3 %
    Total interest and dividend income     5,198       5,306   -2.0 %     20,888     20,734   0.7 %
                                       
Interest expense:                                      
  Interest on deposits     773       762   1.4 %     3,055     3,016   1.3 %
  Interest on borrowings     270       416   -35.1 %     1,313     2,084   -37.0 %
    Total interest expense     1,043       1,178   -11.5 %     4,368     5,100   -14.4 %
Net interest income     4,155       4,128   0.7 %     16,520     15,634   5.7 %
Provision for loan losses     175       270   -35.2 %     487     630   -22.7 %
Net interest income after provision for loan losses     3,980       3,858   3.2 %     16,033     15,004   6.9 %
                                       
Noninterest income:                                      
  Service fees     331       372   -11.0 %     1,420     1,471   -3.5 %
  Gain on sale of loans held for sale     771       701   10.0 %     3,061     2,382   28.5 %
  Gain on sale of securities     -       -   -       180     284   -36.6 %
  Other service fees     172       184   -6.5 %     728     716   1.7 %
  Earnings on bank-owned life insurance     99       100   -1.0 %     403     398   1.3 %
  Other     22       25   -12.0 %     108     140   -22.9 %
    Total noninterest income     1,395       1,382   0.9 %     5,900     5,391   9.4 %
                                       
Noninterest expense:                                      
  Salaries and benefits     1,944       1,917   1.4 %     7,927     7,324   8.2 %
  Net occupancy     341       337   1.2 %     1,416     1,383   2.4 %
  Equipment     314       281   11.7 %     1,200     1,061   13.1 %
  Marketing and public relations     215       197   9.1 %     794     832   -4.6 %
  Professional fees     (5 )     145   -103.4 %     517     773   -33.1 %
  Other     1,079       900   19.9 %     3,748     3,220   16.4 %
    Total noninterest expense     3,888       3,777   2.9 %     15,602     14,593   6.9 %
Income before income taxes     1,487       1,463   1.6 %     6,331     5,802   9.1 %
Income taxes     440       422   4.3 %     1,989     1,675   18.7 %
Net income     1,047       1,041   0.6 %     4,342     4,127   5.2 %
Less: Net income attributable to noncontrolling interest     5       5   0.0 %     5     5   0.0 %
                                       
Net income attibutable to Elmira Savings Bank     1,042       1,036   0.6 %     4,337     4,122   5.2 %
                                       
Dividend on preferred stock     225       225   0.0 %     900     900   0.0 %
Income available to common shareholders   $ 817     $ 811   0.7 %   $ 3,437   $ 3,222   6.7 %
                                       
                                       
Basic earnings per share   $ 0.30     $ 0.30   0.0 %   $ 1.26   $ 1.19   5.9 %
                                       
Diluted earnings per share   $ 0.30     $ 0.30   0.0 %   $ 1.25   $ 1.17   6.8 %
                                       
Weighted average shares outstanding - basic     2,731,266       2,712,052   0.7 %     2,772,243     2,707,491   2.4 %
                                       
Weighted average shares outstanding - diluted     2,749,828       2,731,078   0.7 %     2,739,668     2,762,332   -0.8 %
                                       
Dividends per share   $ 0.23     $ 0.23   0.0 %   $ 0.92   $ 0.92   0.0 %
   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
   
(Dollars in Thousands)   For the Three Months Ended  
    December 31, 2016     December 31, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 458,772   $ 4,751   4.12 %   $ 447,731   $ 4,762   4.23 %
Short-term investments     789     -   0.17       177     -   0.10  
Securities     52,464     447   3.39       67,996     544   3.19  
Total interest-earning assets     512,025     5,198   4.04       515,904     5,306   4.09  
                                     
Noninterest-earning assets     58,067                 47,119            
                                     
TOTAL ASSETS   $ 570,092               $ 563,023            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 394,401   $ 773   0.78     $ 369,180   $ 762   0.82  
Borrowings     42,000     270   2.51       64,134     416   2.54  
Total interest-bearing liabilities     436,401     1,043   0.95       433,314     1,178   1.07  
                                     
Noninterest-bearing liabilities     77,531                 74,581            
Shareholders' equity     56,160                 55,128            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 570,092               $ 563,023            
Interest rate spread               3.09 %               3.02 %
Net interest income/margin         $ 4,155   3.23 %         $ 4,128   3.19 %
   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
   
(Dollars in Thousands)   For the Twelve Months Ended  
    December 31, 2016     December 31, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 458,840   $ 19,056   4.14 %   $ 433,397   $ 18,418   4.24 %
Short-term investments     586     1   0.18       847     -   0.03  
Securities     54,449     1,831   3.36       75,228     2,316   3.08  
Total interest-earning assets     513,875     20,888   4.05       509,472     20,734   4.06  
                                     
Noninterest-earning assets     53,301                 54,990            
                                     
TOTAL ASSETS   $ 567,176               $ 564,462            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 386,818   $ 3,055   0.79     $ 365,142   $ 3,016   0.83  
Borrowings     48,788     1,313   2.65       70,773     2,084   2.90  
Total interest-bearing liabilities     435,606     4,368   1.00       435,915     5,100   1.16  
                                     
Noninterest-bearing liabilities     75,782                 73,103            
Shareholders' equity     55,788                 55,444            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 567,176               $ 564,462            
Interest rate spread               3.05 %               2.90 %
Net interest income/margin         $ 16,520   3.21 %         $ 15,634   3.07 %
     
     
     
  Quarter Ended  
(Dollars in Thousands, Except Per Share Data) 12/31/2016   9/30/2016   6/30/2016   3/31/2016   12/31/2015  
                               
Operating Data                              
                               
  Net income $ 1,042   $ 1,202   $ 1,057   $ 1,036   $ 1,036  
  Net interest income   4,155     4,211     4,054     4,100     4,128  
  Provision for loan losses   175     87     85     140     270  
  Net security gains   -     -     -     180     -  
  Non-interest income, ex. Net security gains   1,395     1,716     1,438     1,171     1,382  
  Non-interest expense   3,888     3,976     3,891     3,847     3,777  
                               
Performance Statistics                              
                               
  Net interest margin   3.23 %   3.24 %   3.17 %   3.19 %   3.19 %
  Annualized return on average assets   0.73 %   0.84 %   0.75 %   0.74 %   0.73 %
  Annualized return on average equity   7.38 %   8.54 %   7.65 %   7.52 %   7.46 %
  Annualized net loan charge-offs to avg loans   0.20 %   0.05 %   0.01 %   0.07 %   0.18 %
  Net charge-offs (recoveries)   231     53     14     74     204  
  Efficiency ratio   70.1 %   67.1 %   70.8 %   70.6 %   68.5 %
                               
Per Share Data                              
                               
  Basic earnings per share $ 0.30   $ 0.36   $ 0.31   $ 0.30   $ 0.30  
  Diluted earnings per share   0.30     0.36     0.30     0.30     0.30  
  Dividend declared per share   0.23     0.23     0.23     0.23     0.23  
  Book value   16.74     16.80     16.69     16.59     16.53  
  Common stock price:                              
    High   22.25     21.50     20.10     20.55     21.13  
    Low   18.50     18.85     18.06     16.83     18.41  
    Close   20.45     19.91     19.66     18.01     19.88  
  Weighted average common shares:                              
    Basic   2,731     2,724     2,718     2,716     2,712  
    Fully diluted   2,750     2,741     2,735     2,733     2,731  
  End-of-period common shares:                              
    Issued   2,845     2,839     2,832     2,828     2,821  
    Treasury   98     98     98     98     98  
                               
                               
Financial Condition Data:                              
General                              
  Total assets $ 573,450   $ 567,450   $ 574,721   $ 560,020   $ 561,344  
  Loans, net   451,668     455,251     463,104     452,718     447,220  
  Intangibles   12,340     12,349     12,360     12,371     12,381  
  Total deposits   469,547     463,414     470,462     443,552     440,472  
    Noninterest-bearing   70,330     72,102     70,803     65,165     66,964  
    Savings   70,621     69,019     69,159     67,295     66,914  
    NOW   85,822     86,787     121,875     105,094     87,083  
    Money Market   28,889     25,715     25,172     25,281     23,382  
    Time deposits   213,885     209,791     183,453     180,717     196,129  
    Total interest-bearing deposits   399,217     391,312     399,659     378,387     373,508  
  Shareholders' equity   55,723     55,792     55,382     55,039     54,771  
                               
Asset Quality                              
                               
  Non-performing assets $ 5,289   $ 5,345   $ 5,622   $ 5,328   $ 4,943  
  Non-performing assets to total assets   0.92 %   0.94 %   0.98 %   0.95 %   0.88 %
  Allowance for loan losses   4,263     4,319     4,285     4,214     4,148  
  Allowance for loan losses to total loans   0.94 %   0.94 %   0.92 %   0.92 %   0.92 %
  Allowance for loan losses to non-performing loans   84.80 %   85.00 %   80.41 %   83.69 %   87.66 %
  Non-performing loans to total loans   1.11 %   1.12 %   1.15 %   1.10 %   1.05 %
                               
Capitalization                              
                               
  Shareholders' equity to total assets   9.72 %   9.83 %   9.64 %   9.83 %   9.76 %

Contact Information

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