SOURCE: Elmira Savings Bank

Elmira Savings Bank

April 22, 2014 09:59 ET

Elmira Savings Bank Reports First Quarter Earnings

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

Highlights

  • Net income was $1,060,000 for the three months ended March 31, 2014 compared to $1,192,000 for the same period in 2013. Income available to common shareholders after dividends on preferred stock increased 5.6% to $835,000 for the three months ended March 31, 2014 compared to $791,000 for the same period in 2013.

  • Diluted earnings per share was $.30 per share for the three months ended March 31, 2014 compared to $.29 per share for the same period in 2013. This represents an increase of 3.4% for the three months ended March 31, 2014 compared to the same period in 2013.

  • Return on average assets was .84% for the three months ended March 31, 2014 compared to .91% for the same period in 2013.

  • Return on average equity was 7.82% for the three months ended March 31, 2014 compared to 7.26% for the same period in 2013.

"We are pleased to report a 5.6% increase in income available to common shareholders for the first quarter of 2014, compared to the same period in 2013, despite slightly lower net income," said Thomas M. Carr, President and Chief Operating Officer. Carr continued, "Our decision to retire preferred shares in 2013 has greatly reduced our level of preferred dividend payments, benefiting our common shareholders who were also rewarded with a $.23, or 4% annualized, common dividend in the first quarter."

Net Income

Net income totaled $1,060,000 for the three months ended March 31, 2014, a decrease of $132,000 or 11.1% from the $1,192,000 recorded for the same period in 2013. This decrease was the net result of a decline in noninterest income of $196,000 and an increase in noninterest expense of $187,000, partially offset by an increase of $74,000 in net interest income, a reduction in the provision for loan losses of $126,000, and a reduction in tax expense of $51,000.

Basic and diluted earnings per share for the three months ended March 31, 2014 were $.31 per share and $.30 per share compared to $.31 per share and $.29 per share for the same period in 2013.

Net Interest Margin

The net interest margin for the three months ended March 31, 2014 was 3.31% compared to 3.32% for the first quarter of 2013. The yield on average earning assets was 4.34% for the three months ended March 31, 2014 compared to 4.46% for the same period in 2013. The average cost of interest-bearing liabilities was 1.22% for the three months ended March 31, 2014 compared to 1.32% for the three months ended March 31, 2013.

Assets

Total assets decreased $387,000 or 0.1% to $513.9 million at March 31, 2014 compared to $514.3 million at December 31, 2013. Loans receivable increased 0.8% to $392.1 million at March 31, 2014 compared to December 31, 2013. The available-for-sale investment portfolio decreased $5.8 million from December 31, 2013 to March 31, 2014.

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to .82% at March 31, 2014 from .90% at December 31, 2013. Net loan charge-offs to average loans for the three months ended March 31, 2014 of .04% decreased from .06% for the twelve months ended December 31, 2013. The allowance for loan losses was .98% of total loans at March 31, 2014 and .99% at December 31, 2013.

Liabilities

Deposits totaled $395.0 million at March 31, 2014, reflecting a decrease of $2.8 million or .7%. Borrowed funds increased by $3.3 million or 5.8%.

Shareholders' Equity

Shareholders' equity increased $738,000 to $54.8 million at March 31, 2014 compared to December 31, 2013. The current level of shareholders' equity equates to a book value per share of $16.78 at March 31, 2014, compared to $16.64 at December 31, 2013. Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2014 compared to $0.21 for the same period in 2013, representing an increase of 9.5%.

Elmira Savings Bank, with $513.9 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 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,        
    2014     2013     % Change  
ASSETS                      
                       
Cash and due from banks   $ 9,379     $ 7,077     32.5 %
Federal funds sold and other short-term investments     530       564     -6.0 %
  Total cash and cash equivalents     9,909       7,641     29.7 %
                       
Securities available for sale, at fair value     57,688       63,464     -9.1 %
Securities held to maturity - fair value $8,235 at March 31, 2014, and $8,302 at December 31, 2013     7,742       7,805     -0.8 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     10,433       10,417     0.2 %
                       
Loans held for sale     1,291       1,847     -30.1 %
                       
Loans receivable     392,146       389,129     0.8 %
Less: Allowance for loan losses     3,851       3,834     0.4 %
  Net loans     388,295       385,295     0.8 %
                       
Premises and equipment, net     9,202       8,620     6.8 %
Bank-owned life insurance     12,477       12,387     0.7 %
Accrued interest receivable     1,520       1,454     4.5 %
Intangible assets, net     188       210     -10.5 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,873       2,865     0.3 %
  Total assets   $ 513,938     $ 514,325     -0.1 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 394,951     $ 397,733     -0.7 %
Borrowings     59,800       56,500     5.8 %
Other liabilities     4,424       6,067     -27.1 %
  Total liabilities     459,175       460,300     -0.2 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at March 31, 2014 and at December 31, 2013     9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,786,504 shares issued at March 31, 2014 and 2,776,240 shares issued at December 31, 2013     2,787       2,776     0.4 %
Additional paid-in capital     41,896       41,693     0.5 %
Retained earnings     2,703       2,485     8.8 %
Treasury stock, at cost - 104,418 shares at March 31, 2014 and 116,268 shares at December 31, 2013     (3,053 )     (3,327 )   -8.2 %
Accumulated other comprehensive income     676       644     5.0 %
  Total Elmira Savings Bank shareholders' equity     54,709       53,971     1.4 %
Noncontrolling interest     54       54     0.0 %
  Total shareholders' equity     54,763       54,025     1.4 %
  Total liabilities and shareholders' equity   $ 513,938     $ 514,325     -0.1 %
                       
                       
                       
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
               
    Three Months Ended      
    March 31,      
(in thousands, except for per share data)   2014   2013   % Change  
                   
Interest and dividend income:                  
  Interest and fees on loans   $ 4,397   $ 4,473   -1.7 %
  Interest and dividends on securities                  
    Taxable     464     447   3.8 %
    Non-taxable     204     185   10.3 %
    Total interest and dividend income     5,065     5,105   -0.8 %
                   
Interest expense:                  
  Interest on deposits     742     829   -10.5 %
  Interest on borrowings     450     477   -5.7 %
    Total interest expense     1,192     1,306   -8.7 %
Net interest income     3,873     3,799   1.9 %
Provision for loan losses     54     180   -70.0 %
Net interest income after provision for loan losses     3,819     3,619   5.5 %
                   
Noninterest income:                  
  Service fees     329     316   4.1 %
  Gain on sale of loans held for sale     448     848   -47.2 %
  Gain on sale of securities     216     61   254.1 %
  Other service fees     164     154   6.5 %
  Earnings on bank-owned life insurance     91     90   1.1 %
  Other     41     16   156.3 %
    Total noninterest income     1,289     1,485   -13.2 %
                   
Noninterest expense:                  
  Salaries and benefits     1,839     1,821   1.0 %
  Net occupancy     416     325   28.0 %
  Equipment     250     259   -3.5 %
  Marketing and public relations     200     147   36.1 %
  Professional fees     161     169   -4.7 %
  Other     697     655   6.4 %
    Total noninterest expense     3,563     3,376   5.5 %
Income before income taxes     1,545     1,728   -10.6 %
Income taxes     485     536   -9.5 %
Net income     1,060     1,192   -11.1 %
Less: Net income attributable to noncontrolling interest     -     -   -  
                   
Net income attibutable to Elmira Savings Bank     1,060     1,192   -11.1 %
                   
Dividend on preferred stock     225     401   -43.9 %
Income available to common shareholders   $ 835   $ 791   5.6 %
                   
                   
Basic earnings per share   $ 0.31   $ 0.31   0.0 %
                   
Diluted earnings per share   $ 0.30   $ 0.29   3.4 %
                   
Weighted average shares outstanding - basic     2,657,141     2,568,005   3.5 %
                   
Weighted average shares outstanding - diluted     2,789,840     2,718,478   2.6 %
                   
Dividends per share   $ 0.23   $ 0.21   9.5 %
                   
                   
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  
    March 31, 2014     March 31, 2013  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 388,765   $ 4,397   4.54 %   $ 376,910   $ 4,473   4.77 %
Short-term investments     510     1   0.04       2,595     -   0.04  
Securities     79,547     667   3.37       80,592     632   3.15  
Total interest-earning assets     468,822     5,065   4.34       460,097     5,105   4.46  
                                     
Noninterest-earning assets     42,488                 70,022            
                                     
TOTAL ASSETS   $ 511,310               $ 530,119            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 335,489   $ 742   0.90     $ 343,753   $ 829   0.98  
Borrowings     58,413     450   3.08       54,000     477   3.53  
Total interest-bearing liabilities     393,902     1,192   1.22       397,753     1,306   1.32  
                                     
Noninterest-bearing liabilities     62,456                 65,747            
Shareholders' equity     54,952                 66,619            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 511,310               $ 530,119            
Interest rate spread               3.12 %               3.14 %
Net interest income/margin         $ 3,873   3.31 %         $ 3,799   3.32 %
                                     
                                     
                                     
  Quarter Ended  
(Dollars in Thousands, Except Per Share Data) 3/31/2014     12/31/2013     9/30/2013     6/30/2013     3/31/2013  
Operating Data                                      
                                       
  Net income $ 1,060     $ 1,119     $ 1,369     $ 1,374     $ 1,192  
  Net interest income   3,873       3,772       3,770       3,712       3,799  
  Provision for loan losses   54       -       50       85       180  
  Net security gains   216       -       -       -       61  
  Non-interest income, ex. Net security gains   1,073       1,179       1,474       1,419       1,424  
  Non-interest expense   3,563       3,573       3,428       3,485       3,376  
                                       
Performance Statistics                                      
                                       
  Net interest margin   3.31 %     3.22 %     3.23 %     3.24 %     3.32 %
  Annualized return on average assets   0.84 %     0.85 %     1.05 %     1.07 %     0.91 %
  Annualized return on average equity   7.82 %     7.75 %     9.55 %     9.67 %     7.26 %
  Annualized net loan charge-offs to avg loans   0.04 %     -0.02 %     0.04 %     0.00 %     0.21 %
  Net charge-offs (recoveries)   38       (15 )     40       -       196  
  Efficiency ratio   69.0 %     72.2 %     65.4 %     67.9 %     63.9 %
                                       
Per Share Data                                      
                                       
  Basic earnings per share $ 0.31     $ 0.32     $ 0.42     $ 0.42     $ 0.31  
  Diluted earnings per share   0.30       0.30       0.40       0.40       0.29  
  Dividend declared per share   0.23       0.21       0.21       0.21       0.21  
  Book value   16.78       16.64       16.62       16.44       16.47  
  Common stock price:                                      
    High   26.97       28.45       22.73       23.93       23.05  
    Low   22.25       20.15       19.30       18.18       20.67  
    Close   24.49       25.20       22.07       19.59       23.05  
  Weighted average common shares:                                      
    Basic   2,657       2,639       2,626       2,620       2,569  
    Fully diluted   2,790       2,764       2,745       2,741       2,718  
  End-of-period common shares:                                      
    Issued   2,787       2,776       2,775       2,771       2,761  
    Treasury   104       116       116       116       116  
                                       
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 $ 513,938     $ 514,325     $ 519,747     $ 516,137     $ 510,915  
  Loans, net   388,295       385,295       381,298       380,252       370,753  
  Intangibles   12,508       12,530       12,555       12,582       12,609  
  Total deposits   394,951       397,733       396,600       396,993       395,091  
                                       
    Noninterest-bearing   57,059       59,886       62,616       61,018       58,118  
                                       
    Savings   61,655       60,924       60,710       61,918       60,177  
    NOW   75,789       77,736       72,076       71,894       71,472  
    Money Market   21,540       21,130       22,465       20,826       19,222  
    Time deposits   178,908       178,057       178,733       181,337       186,102  
    Total interest-bearing deposits   337,892       337,847       333,984       335,975       336,973  
                                       
  Shareholders' equity   54,763       54,025       57,290       56,745       56,677  
                                       
Asset Quality                                      
                                       
  Non-performing assets $ 3,368     $ 3,592     $ 3,302     $ 3,575     $ 3,826  
  Non-performing assets to total assets   0.66 %     0.70 %     0.64 %     0.69 %     0.75 %
  Allowance for loan losses   3,851       3,834       3,819       3,809       3,724  
  Allowance for loan losses to total loans   0.98 %     0.99 %     0.99 %     0.99 %     0.99 %
  Allowance for loan losses to non-performing loans   119.23 %     109.73 %     115.66 %     106.55 %     100.95 %
  Non-performing loans to total loans   0.82 %     0.90 %     0.86 %     0.93 %     0.99 %
                                       
Capitalization                                      
                                       
  Shareholders' equity to total assets   10.66 %     10.50 %     11.02 %     10.99 %     11.09 %

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
    Email Contact