SOURCE: Elmira Savings Bank

Elmira Savings Bank

April 26, 2016 13:15 ET

Elmira Savings Bank Reports First Quarter Earnings

ELMIRA, NY--(Marketwired - Apr 26, 2016) -  Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,036,000 for the three months ended March 31, 2016 compared to $1,010,000 for the same period in 2015.

  • Diluted earnings per share were $.30 per share for the three months ended March 31, 2016 compared to $.28 per share for the same period in 2015. 

  • Return on average assets was .74% for the three months ended March 31, 2016 and for the same period in 2015.

  • Return on average equity was 7.52% for the three months ended March 31, 2016 compared to 7.29% for the same period in 2015.

"We are pleased with the year-over-year improvement in first quarter earnings, due in part to an increase in our net interest margin," said Thomas M. Carr, President and CEO. Carr continued, "We also experienced a 29% increase in residential mortgage originations resulting in an increase of $168,000 in gain on sale of mortgages from last year."

Net Income

Net income totaled $1,036,000 for the three months ended March 31, 2016, an increase of $26,000 or 2.6% from the $1,010,000 recorded for the same period in 2015. This increase was the net result of an increase in net interest income of $275,000, an increase in noninterest income of $116,000, and a reduction in tax expense of $3,000, offset by an increase in noninterest expense of $278,000 and an increase in the provision for loan losses of $90,000.

Basic and diluted earnings per share for the three months ended March 31, 2016 were both $.30 per share compared to $.29 per share and $.28 per share for the same period in 2015.

Net Interest Margin

The net interest margin for the three months ended March 31, 2016 was 3.19% compared to 3.07% for the first quarter of 2015. The yield on average earning assets was 4.07% for the three months ended March 31, 2016 compared to 4.09% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the three months ended March 31, 2016 compared to 1.19% for the three months ended March 31, 2015.

Assets

Total assets decreased $1.3 million or 0.2% to $560.0 million at March 31, 2016 compared to $561.3 million at December 31, 2015. Loans receivable increased 1.2% to $456.9 million at March 31, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $5.2 million from December 31, 2015 to March 31, 2016.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.10% at March 31, 2016 and 1.05% at December 31, 2015. Net loan charge-offs to average loans for the three months ended March 31, 2016 of .07% increased from .02% for the three months ended March 31, 2015. The allowance for loan losses was .92% of total loans at March 31, 2016 and .92% at December 31, 2015.

Liabilities

Deposits totaled $443.6 million at March 31, 2016, an increase of $3.1 million or .7% from the December 31, 2015 total of $440.5 million. Borrowed funds decreased by $3.2 million or 5.4%.

Shareholders' Equity

Shareholders' equity increased $268,000 to $55.0 million at March 31, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.59 at March 31, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2016 and 2015. 

Elmira Savings Bank, with $560.0 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)   March 31,     December 31,        
    2016     2015     % Change  
ASSETS                      
                       
Cash and due from banks   $ 5,631     $ 5,352     5.2 %
Federal funds sold and other short-term investments     101       102     -1.0 %
Total cash and cash equivalents     5,732       5,454     5.1 %
                       
Securities available for sale, at fair value     37,492       42,709     -12.2 %
Securities held to maturity - fair value $9,201 at March 31, 2016 and $9,010 at December 31, 2015     8,910       9,003     -1.0 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     10,879       11,108     -2.1 %
                       
Loans held for sale     2,033       3,630     -44.0 %
                       
Loans receivable     456,932       451,368     1.2 %
Less: Allowance for loan losses     4,214       4,148     1.6 %
  Net loans     452,718       447,220     1.2 %
                       
Premises and equipment, net     12,086       12,130     -0.4 %
Bank-owned life insurance     13,285       13,188     0.7 %
Accrued interest receivable     1,610       1,541     4.5 %
Intangible assets, net     51       61     -16.4 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,904       2,980     -2.6 %
  Total assets   $ 560,020     $ 561,344     -0.2 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 443,552     $ 440,472     0.7 %
Borrowings     56,300       59,525     -5.4 %
Other liabilities     5,129       6,576     -22.0 %
  Total liabilities     504,981       506,573     -0.3 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at March 31, 2016 and at December 31, 2015     9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,827,804 shares issued at March 31, 2016 and 2,820,745 shares issued at December 31, 2015     2,828       2,821     0.2 %
Additional paid-in capital     41,328       41,243     0.2 %
Retained earnings     3,672       3,488     5.3 %
Treasury stock, at cost - 98,118 shares at March 31, 2016 and at December 31, 2015     (2,907 )     (2,907 )   0.0 %
Accumulated other comprehensive income     365       373     -2.1 %
  Total Elmira Savings Bank shareholders' equity     54,986       54,718     0.5 %
Noncontrolling interest     53       53     0.0 %
  Total shareholders' equity     55,039       54,771     0.5 %
  Total liabilities and shareholders' equity   $ 560,020     $ 561,344     -0.2 %
                       
                       
                       
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
               
    Three Months Ended      
    March 31,      
(in thousands, except for per share data)   2016   2015   % Change  
                   
Interest and dividend income:                  
  Interest and fees on loans   $ 4,729   $ 4,462   6.0 %
  Interest and dividends on securities                  
    Taxable     285     402   -29.1 %
    Non-taxable     219     231   -5.2 %
    Total interest and dividend income     5,233     5,095   2.7 %
                   
Interest expense:                  
  Interest on deposits     734     727   1.0 %
  Interest on borrowings     399     543   -26.5 %
    Total interest expense     1,133     1,270   -10.8 %
Net interest income     4,100     3,825   7.2 %
Provision for loan losses     140     50   180.0 %
Net interest income after provision for loan losses     3,960     3,775   4.9 %
                   
Noninterest income:                  
  Service fees     348     355   -2.0 %
  Gain on sale of loans held for sale     522     354   47.5 %
  Gain on sale of securities     180     204   -11.8 %
  Other service fees     180     169   6.5 %
  Earnings on bank-owned life insurance     97     94   3.2 %
  Other     24     59   -59.3 %
    Total noninterest income     1,351     1,235   9.4 %
                   
Noninterest expense:                  
  Salaries and benefits     1,927     1,794   7.4 %
  Net occupancy     369     392   -5.9 %
  Equipment     275     254   8.3 %
  Marketing and public relations     201     211   -4.7 %
  Professional fees     180     180   0.0 %
  Other     895     738   21.3 %
    Total noninterest expense     3,847     3,569   7.8 %
Income before income taxes     1,464     1,441   1.6 %
Income taxes     428     431   -0.7 %
Net income     1,036     1,010   2.6 %
Less: Net income attributable to noncontrolling interest     -     -   -  
                   
Net income attibutable to Elmira Savings Bank     1,036     1,010   2.6 %
                   
Dividend on preferred stock     225     225   0.0 %
Income available to common shareholders   $ 811   $ 785   3.3 %
                   
                   
Basic earnings per share   $ 0.30   $ 0.29   3.4 %
                   
Diluted earnings per share   $ 0.30   $ 0.28   7.1 %
                   
Weighted average shares outstanding - basic     2,715,915     2,700,542   0.6 %
                   
Weighted average shares outstanding - diluted     2,733,014     2,811,600   -2.8 %
                   
Dividends per share   $ 0.23   $ 0.23   0.0 %
                   
                   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                           
(Dollars in Thousands) For the Three Months Ended  
  March 31, 2016     March 31, 2015  
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans $ 453,828   $ 4,729   4.17 %   $ 417,480   $ 4,462   4.29 %
Short-term investments   381     -   0.16       1,510     1   0.03  
Securities   59,630     504   3.38       81,785     632   3.10  
Total interest-earning assets   513,839     5,233   4.07       500,775     5,095   4.09  
                                   
Noninterest-earning assets   48,009                 54,161            
                                   
TOTAL ASSETS $ 561,848               $ 554,936            
                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                                  
Interest-bearing deposits $ 374,605   $ 734   0.79     $ 358,257   $ 727   0.82  
Borrowings   58,997     399   2.68       71,822     543   3.02  
Total interest-bearing liabilities   433,602     1,133   1.04       430,079     1,270   1.19  
                                   
Noninterest-bearing liabilities   72,848                 68,726            
Shareholders' equity   55,398                 56,131            
                                   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 561,848               $ 554,936            
Interest rate spread             3.03 %               2.90 %
Net interest income/margin       $ 4,100   3.19 %         $ 3,825   3.07 %
                                   
                                   
                                   
          Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   3/31/2016     12/31/2015     9/30/2015     6/30/2015     3/31/2015  
                               
Operating Data                                        
                                         
  Net income   $ 1,036     $ 1,036     $ 1,057     $ 1,019     $ 1,010  
  Net interest income     4,100       4,128       3,852       3,829       3,825  
  Provision for loan losses     140       270       170       140       50  
  Net security gains     180       -       -       80       204  
  Non-interest income, ex. Net security gains     1,171       1,382       1,539       1,155       1,031  
  Non-interest expense     3,847       3,777       3,725       3,522       3,569  
                                         
Performance Statistics                                        
                                         
  Net interest margin     3.19 %     3.19 %     2.97 %     3.04 %     3.07 %
  Annualized return on average assets     0.74 %     0.73 %     0.73 %     0.72 %     0.74 %
  Annualized return on average equity     7.52 %     7.46 %     7.60 %     7.39 %     7.29 %
  Annualized net loan charge-offs to avg loans     0.07 %     0.18 %     0.10 %     0.11 %     0.02 %
  Net charge-offs (recoveries)     74       204       117       114       21  
  Efficiency ratio     70.6 %     68.5 %     69.1 %     69.5 %     70.5 %
                                         
Per Share Data                                        
                                         
  Basic earnings per share   $ 0.30     $ 0.30     $ 0.31     $ 0.29     $ 0.29  
  Diluted earnings per share     0.30       0.30       0.30       0.29       0.28  
  Dividend declared per share     0.23       0.23       0.23       0.23       0.23  
  Book value     16.59       16.53       16.49       16.34       16.96  
  Common stock price:                                        
    High     20.55       21.13       20.81       20.82       23.00  
    Low     16.83       18.41       19.05       19.43       19.99  
    Close     18.01       19.88       19.20       20.09       20.40  
  Weighted average common shares:                                        
    Basic     2,716       2,712       2,710       2,707       2,701  
    Fully diluted     2,733       2,731       2,730       2,776       2,812  
  End-of-period common shares:                                        
    Issued     2,828       2,821       2,821       2,821       2,813  
    Treasury     98       98       98       98       98  
                                         
                                         
Financial Condition Data:                                        
General                                        
  Total assets   $ 560,020     $ 561,344     $ 566,228     $ 572,890     $ 562,185  
  Loans, net     452,718       447,220       438,777       431,993       416,235  
  Intangibles     12,371       12,381       12,396       12,412       12,428  
  Total deposits     443,552       440,472       442,046       437,663       426,075  
    Noninterest-bearing     65,165       66,964       72,293       68,707       64,442  
    Savings     67,295       66,914       64,421       64,758       63,776  
    NOW     105,094       87,083       85,136       86,835       78,169  
    Money Market     25,281       23,382       19,912       20,678       22,112  
    Time deposits     180,717       196,129       200,284       196,685       197,576  
    Total interest-bearing deposits     378,387       373,508       369,753       368,956       361,633  
                                           
  Shareholders' equity     55,039       54,771       54,657       54,233       55,818  
                                         
Asset Quality                                        
                                         
  Non-performing assets   $ 5,328     $ 4,943     $ 4,545     $ 4,430     $ 4,790  
  Non-performing assets to total assets     0.95 %     0.88 %     0.80 %     0.77 %     0.85 %
  Allowance for loan losses     4,214       4,148       4,082       4,028       4,002  
  Allowance for loan losses to total loans     0.92 %     0.92 %     0.92 %     0.92 %     0.95 %
  Allowance for loan losses to non-performing loans     83.69 %     87.66 %     91.20 %     91.75 %     83.55 %
  Non-performing loans to total loans     1.10 %     1.05 %     1.01 %     1.01 %     1.14 %
                                         
Capitalization                                        
                                         
  Shareholders' equity to total assets     9.83 %     9.76 %     9.65 %     9.47 %     9.93 %
                                           

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