Elmira Savings Bank Reports First Quarter Earnings

ELMIRA, NY--(Marketwired - Apr 28, 2015) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

• Net income was $1,010,000 for the three months ended March 31, 2015 compared to $1,060,000 for the same period in 2014.
  
  
• Diluted earnings per share were $.28 per share for the three months ended March 31, 2015 compared to $.30 per share for the same period in 2014. 
  
  
• Return on average assets was .74% for the three months ended March 31, 2015 compared to .84% for the same period in 2014.
  
  
• Return on average equity was 7.29% for the three months ended March 31, 2015 compared to 7.82% for the same period in 2014.
  
  

"During the first quarter of 2015, we opened our thirteenth full-service branch in Watkins Glen, NY, and added mobile check deposit services to our mobile and online banking functionality," said Thomas M. Carr, President and CEO. Carr continued, "Our earnings were modestly below the same period in 2014, totaling $1.0 million dollars for the period ended March 31, 2015, due to lower revenue year-to-year."

Net Income

Net income totaled $1,010,000 for the three months ended March 31, 2015, a decrease of $50,000 or 4.7% from the $1,060,000 recorded for the same period in 2014. This decrease was the net result of a decline in noninterest income of $54,000 and a decrease of $48,000 in net interest income, offset by a reduction in tax expense of $54,000.

Basic and diluted earnings per share for the three months ended March 31, 2015 were $.29 per share and $.28 per share compared to $.31 per share and $.30 per share for the same period in 2014.

Net Interest Margin

The net interest margin for the three months ended March 31, 2015 was 3.07% compared to 3.31% for the first quarter of 2014. The yield on average earning assets was 4.09% for the three months ended March 31, 2015 compared to 4.34% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the three months ended March 31, 2015 compared to 1.22% for the three months ended March 31, 2014.

Assets

Total assets increased $16.2 million or 3.0% to $562.2 million at March 31, 2015 compared to $546.0 million at December 31, 2014. Loans receivable increased 0.7% to $420.2 million at March 31, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $8.3 million from December 31, 2014 to March 31, 2015.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.14% at March 31, 2015 and 1.13% at December 31, 2014. Net loan charge-offs to average loans for the three months ended March 31, 2015 of .02% decreased from .07% for the twelve months ended December 31, 2014. The allowance for loan losses was .95% of total loans at March 31, 2015 and .95% at December 31, 2014.

Liabilities

Deposits total $426.1 million at March 31, 2015, an increase of $3.5 million or .8%. Borrowed funds increased by $12.0 million or 19.4%.

Shareholders' Equity

Shareholders' equity increased $325,000 to $55.8 million at March 31, 2015 compared to December 31, 2014. The current level of shareholders' equity equates to a book value per share of $16.96 at March 31, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2015 and 2014. 

Elmira Savings Bank, with $562.2 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,
			2015				2014				% Change
ASSETS
Cash and due from banks			$	26,948			$	7,959			238.6	%
Federal funds sold and other short-term investments				504				606			-16.8	%
	Total cash and cash equivalents			27,452				8,565			220.5	%
Securities available for sale, at fair value				57,374				65,624			-12.6	%
Securities held to maturity - fair value $7,503 at March 31, 2015 and $7,641 at December 31, 2014				7,276				7,389			-1.5	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost				11,643				11,182			4.1	%
Loans held for sale				2,434				787			209.3	%
Loans receivable				420,237				417,359			0.7	%
Less: Allowance for loan losses				4,002				3,974			0.7	%
	Net loans			416,235				413,385			0.7	%
Premises and equipment, net				10,058				9,475			6.2	%
Bank-owned life insurance				12,884				12,790			0.7	%
Accrued interest receivable				1,641				1,566			4.8	%
Intangible assets, net				108				125			-13.6	%
Goodwill				12,320				12,320			0.0	%
Other assets				2,760				2,761			0.0	%
	Total assets		$	562,185			$	545,969			3.0	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits			$	426,075			$	422,561			0.8	%
Borrowings				74,000				62,000			19.4	%
Other liabilities				6,292				5,915			6.4	%
	Total liabilities			506,367				490,476			3.2	%
Shareholders' equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at March 31, 2015 and at December 31, 2014				9,700				9,700			0.0	%
Common stock, $1 par value; authorized 5,000,000 shares; 2,813,377 shares issued at March 31, 2015 and 2,809,364 shares issued at December 31, 2014				2,813				2,809			0.1	%
Additional paid-in capital				42,492				42,365			0.3	%
Retained earnings				2,930				2,769			5.8	%
Treasury stock, at cost - 98,118 shares at March 31, 2015 and 104,418 shares at December 31, 2014				(2,907	)			(3,053	)		-4.8	%
Accumulated other comprehensive income				736				849			-13.3	%
	Total Elmira Savings Bank shareholders' equity			55,764				55,439			0.6	%
Noncontrolling interest				54				54			0.0	%
	Total shareholders' equity			55,818				55,493			0.6	%
	Total liabilities and shareholders' equity		$	562,185			$	545,969			3.0	%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
				Three Months Ended
				March 31,
(in thousands, except for per share data)				2015			2014			% Change
Interest and dividend income:
	Interest and fees on loans			$	4,462		$	4,397		1.5	%
	Interest and dividends on securities
		Taxable			402			464		-13.4	%
		Non-taxable			231			204		13.2	%
		Total interest and dividend income			5,095			5,065		0.6	%
Interest expense:
	Interest on deposits				727			742		-2.0	%
	Interest on borrowings				543			450		20.7	%
		Total interest expense			1,270			1,192		6.5	%
Net interest income					3,825			3,873		-1.2	%
Provision for loan losses					50			54		-7.4	%
Net interest income after provision for loan losses					3,775			3,819		-1.2	%
Noninterest income:
	Service fees				355			329		7.9	%
	Gain on sale of loans held for sale				354			448		-21.0	%
	Gain on sale of securities				204			216		-5.6	%
	Other service fees				169			164		3.0	%
	Earnings on bank-owned life insurance				94			91		3.3	%
	Other				59			41		43.9	%
		Total noninterest income			1,235			1,289		-4.2	%
Noninterest expense:
	Salaries and benefits				1,794			1,839		-2.4	%
	Net occupancy				392			416		-5.8	%
	Equipment				254			250		1.6	%
	Marketing and public relations				211			200		5.5	%
	Professional fees				180			161		11.8	%
	Other				738			697		5.9	%
		Total noninterest expense			3,569			3,563		0.2	%
Income before income taxes					1,441			1,545		-6.7	%
Income taxes					431			485		-11.1	%
Net income					1,010			1,060		-4.7	%
Less: Net income attributable to noncontrolling interest					-			-		-
Net income attibutable to Elmira Savings Bank					1,010			1,060		-4.7	%
Dividend on preferred stock					225			225		0.0	%
Income available to common shareholders				$	785		$	835		-6.0	%
Basic earnings per share				$	0.29		$	0.31		-6.5	%
Diluted earnings per share				$	0.28		$	0.30		-6.7	%
Weighted average shares outstanding - basic					2,700,542			2,657,141		1.6	%
Weighted average shares outstanding - diluted					2,811,600			2,789,840		0.8	%
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, 2015									March 31, 2014
ASSETS:		Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans		$	417,480		$	4,462		4.29	%		$	388,765		$	4,397		4.54	%
Short-term investments			1,510			1		0.03				510			1		0.04
Securities			81,785			632		3.10				79,547			667		3.37
Total interest-earning assets			500,775			5,095		4.09				468,822			5,065		4.34
Noninterest-earning assets			54,161									42,488
TOTAL ASSETS		$	554,936								$	511,310
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits		$	358,257		$	727		0.82			$	335,489		$	742		0.90
Borrowings			71,822			543		3.02				58,413			450		3.08
Total interest-bearing liabilities			430,079			1,270		1.19				393,902			1,192		1.22
Noninterest-bearing liabilities			68,726									62,456
Shareholders' equity			56,131									54,952
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	554,936								$	511,310
Interest rate spread								2.90	%								3.12	%
Net interest income/margin					$	3,825		3.07	%					$	3,873		3.31	%

				Quarter Ended
(Dollars in Thousands, Except Per Share Data)				3/31/2015				12/31/2014			9/30/2014				6/30/2014				3/31/2014
Operating Data
	Net income			$	1,010			1,031			$	475			$	1,099			$	1,060
	Net interest income				3,825			4,018				3,802				3,719				3,873
	Provision for loan losses				50			140				138				75				54
	Net security gains				204			-				-				205				216
	Non-interest income, ex. Net security gains				1,031			1,039				1,155				1,069				1,073
	Non-interest expense				3,569			3,406				4,190				3,344				3,563
Performance Statistics
	Net interest margin				3.07	%		3.23	%			3.18	%			3.19	%			3.31	%
	Annualized return on average assets				0.74	%		0.76	%			0.36	%			0.86	%			0.84	%
	Annualized return on average equity				7.29	%		7.37	%			3.36	%			7.95	%			7.82	%
	Annualized net loan charge-offs to avg loans				0.02	%		0.09	%			-0.01	%			0.15	%			0.04	%
	Net charge-offs (recoveries)				21			94				(7	)			143				38
	Efficiency ratio				70.5	%		67.4	%			84.5	%			67.0	%			69.0	%
Per Share Data
	Basic earnings per share			$	0.29			0.30			$	0.09			$	0.33			$	0.31
	Diluted earnings per share				0.28			0.29				0.09				0.31				0.30
	Dividend declared per share				0.23			0.23				0.23				0.23				0.23
	Book value				16.96			16.91				16.76				16.87				16.78
	Common stock price:
		High			23.00			23.00				24.54				24.78				26.97
		Low			19.99			20.50				20.16				21.92				22.25
		Close			20.40			23.00				22.25				24.50				24.49
	Weighted average common shares:
		Basic			2,701			2,693				2,684				2,674				2,657
		Fully diluted			2,812			2,808				2,803				2,798				2,790
	End-of-period common shares:
		Issued			2,813			2,809				2,809				2,799				2,787
		Treasury			98			104				104				104				104
Financial Condition Data:
General
	Total assets			$	562,185			545,969			$	533,726			$	515,053			$	513,938
	Loans, net				416,235			413,385				406,168				391,611				388,295
	Intangibles				12,428			12,445				12,464				12,486				12,508
	Total deposits				426,075			422,561				405,681				399,219				394,951
		Noninterest-bearing			64,442			62,019				68,871				61,221				57,059
		Savings			63,776			65,286				62,898				63,433				61,655
		NOW			78,169			78,920				75,246				73,116				75,789
		Money Market			22,112			20,512				21,498				22,702				21,540
		Time deposits			197,576			195,824				177,168				178,747				178,908
		Total interest-bearing deposits			361,633			360,542				336,810				337,998				337,892
	Shareholders' equity				55,818			55,493				55,088				55,202				54,763
Asset Quality
	Non-performing assets			$	4,790			4,699			$	4,575			$	4,281			$	3,368
	Non-performing assets to total assets				0.85	%		0.86	%			0.86	%			0.83	%			0.66	%
	Allowance for loan losses				4,002			3,974				3,928				3,783				3,851
	Allowance for loan losses to total loans				0.95	%		0.95	%			0.96	%			0.96	%			0.98	%
	Allowance for loan losses to non-performing loans				83.55	%		84.57	%			88.61	%			89.90	%			119.23	%
	Non-performing loans to total loans				1.14	%		1.13	%			1.08	%			1.06	%			0.82	%
Capitalization
	Shareholders' equity to total assets				9.93	%		10.16	%			10.32	%			10.72	%			10.66	%