SOURCE: Elmira Savings Bank

Elmira Savings Bank

July 20, 2016 11:53 ET

Elmira Savings Bank Reports Second Quarter Earnings

ELMIRA, NY--(Marketwired - Jul 20, 2016) -  Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,057,000 and $2,093,000 for the three and six months ended June 30, 2016 compared to $1,019,000 and $2,029,000 for the same periods in 2015.

  • Diluted earnings per share were $.30 per share and $.60 per share for the three and six months ended June 30, 2016 compared to $.29 per share and $.57 per share for the same periods in 2015. 

  • Return on average assets was .75% for both the three and six months ended June 30, 2016 compared to .72% and .73% for the same periods in 2015.

  • Return on average equity was 7.65% and 7.58% for the three and six months ended June 30, 2016 compared to 7.39% and 7.34% for the same periods in 2015.

"During the first six months of 2016, the Bank experienced 4% growth in the loan portfolio and deposit growth of 7%," said Thomas M. Carr, President and CEO. Carr continued, "In addition, we have increased our noninterest income by 13% and expanded our net interest income by 6%."

Net Income

Net income totaled $2,093,000 for the six months ended June 30, 2016, an increase of $64,000 or 3% from the $2,029,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $319,000 and an increase in net interest income of $500,000, offset by an increase in noninterest expense of $647,000, an increase in the provision for loan losses of $35,000, and an increase in tax expense of $73,000.

Net income totaled $1,057,000 for the three months ended June 30, 2016, an increase of $38,000 or 4% from the $1,019,000 recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $203,000, a decrease in the provision for loan losses of $55,000, and an increase in net interest income of $225,000, offset by an increase in noninterest expense of $369,000 and an increase in tax expense of $76,000.

Basic and diluted earnings per share for the six months ended June 30, 2016 were both $.60 per share compared to $.58 per share and $.57 per share for the same period in 2015. Basic and diluted earnings per share for the three months ended June 30, 2016 were $.31 per share and $.30 per share compared to $.29 per share for both for the same period in 2015.

Net Interest Margin

The net interest margin for the six months ended June 30, 2016 was 3.18% compared to 3.05% for the same period in 2015. The yield on average earning assets was 4.07% for the six months ended June 30, 2016 compared to 4.08% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the six months ended June 30, 2016 compared to 1.19% for the same period in 2015.

The net interest margin for the three months ended June 30, 2016 was 3.17% compared to 3.04% for the same period in 2015. The average yield on earning assets was 4.06% for the three months ended June 30, 2016 compared to 4.07% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the three months ended June 30, 2016 compared to 1.19% for the same period in 2015.

Assets

Total assets increased $13.4 million or 2.4% to $574.7 million at June 30, 2016 compared to $561.3 million at December 31, 2015. Loans, including loans held for sale, increased 3.8% to $472.3 million at June 30, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $8.4 million from December 31, 2015 to June 30, 2016.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 1.15% at June 30, 2016 from 1.05% at December 31, 2015. Net loan charge-offs to average loans for the six months ended June 30, 2016 of 0.04% decreased from 0.06% for the six months ended June 30, 2015. The allowance for loan losses was 0.92% of total loans at both June 30, 2016 and December 31, 2015.

Liabilities

Deposits total $470.5 million at June 30, 2016, an increase of $30.0 million or 6.8%. The $30.0 million increase consists of a $34.8 million increase in interest bearing transaction accounts, a $3.8 million increase in noninterest-bearing accounts, a $2.2 million increase in savings accounts, and a $1.8 million increase in money market accounts, partially offset by a $12.7 million decrease in time deposits. Borrowed funds decreased by $17.5 million or 29.4%.

Shareholders' Equity

Shareholders' equity increased $0.6 million to $55.4 million at June 30, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.69 at June 30, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2016 and 2015.

Elmira Savings Bank, with $574.7 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)   June 30,     December 31,        
    2016     2015     % Change  
ASSETS                      
                       
Cash and due from banks   $ 10,723     $ 5,352     100.4 %
Federal funds sold and other short-term investments     101       102     -1.0 %
  Total cash and cash equivalents     10,824       5,454     98.5 %
                       
Securities available for sale, at fair value     34,263       42,709     -19.8 %
Securities held to maturity - fair value $9,145 at June 30, 2016 and $9,010 at December 31, 2015     8,725       9,003     -3.1 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     10,700       11,108     -3.7 %
                       
Loans held for sale     4,873       3,630     34.2 %
                       
Loans receivable     467,389       451,368     3.5 %
Less: Allowance for loan losses     4,285       4,148     3.3 %
  Net loans     463,104       447,220     3.6 %
                       
Premises and equipment, net     12,143       12,130     0.1 %
Bank-owned life insurance     13,393       13,188     1.6 %
Accrued interest receivable     1,467       1,541     -4.8 %
Intangible assets, net     40       61     -34.4 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,869       2,980     -3.7 %
  Total assets   $ 574,721     $ 561,344     2.4 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 470,462     $ 440,472     6.8 %
Borrowings     42,000       59,525     -29.4 %
Other liabilities     6,877       6,576     4.6 %
  Total liabilities     519,339       506,573     2.5 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at June 30, 2016 and at December 31, 2015     9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,832,304 shares issued at June 30, 2016 and 2,820,745 shares issued at December 31, 2015     2,832       2,821     0.4 %
Additional paid-in capital     41,396       41,243     0.4 %
Retained earnings     3,875       3,488     11.1 %
Treasury stock, at cost - 98,118 shares at June 30, 2016 and December 31, 2015     (2,907 )     (2,907 )   0.0 %
Accumulated other comprehensive income     433       373     16.1 %
  Total Elmira Savings Bank shareholders' equity     55,329       54,718     1.1 %
Noncontrolling interest     53       53     0.0 %
  Total shareholders' equity     55,382       54,771     1.1 %
  Total liabilities and shareholders' equity   $ 574,721     $ 561,344     2.4 %
                       
                       
                       
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
                           
  Three Months Ended     Six Months Ended  
  June 30,     June 30,  
(in thousands, except for per share data) 2016   2015   % Change     2016   2015   % Change  
                                   
Interest and dividend income:                                  
  Interest and fees on loans $ 4,744   $ 4,570   3.8 %   $ 9,473   $ 9,032   4.9 %
  Interest and dividends on securities                                  
    Taxable   242     330   -26.7 %     527     732   -28.0 %
    Non-taxable   205     233   -12.0 %     424     464   -8.6 %
    Total interest and dividend income   5,191     5,133   1.1 %     10,424     10,228   1.9 %
                                   
Interest expense:                                  
  Interest on deposits   763     741   3.0 %     1,497     1,468   2.0 %
  Interest on borrowings   374     563   -33.6 %     773     1,106   -30.1 %
    Total interest expense   1,137     1,304   -12.8 %     2,270     2,574   -11.8 %
Net interest income   4,054     3,829   5.9 %     8,154     7,654   6.5 %
Provision for loan losses   85     140   -39.3 %     225     190   18.4 %
Net interest income after provision for loan losses   3,969     3,689   7.6 %     7,929     7,464   6.2 %
                                   
Noninterest income:                                  
  Service fees   354     368   -3.8 %     702     723   -2.9 %
  Gain on sale of loans held for sale   749     457   63.9 %     1,271     811   56.7 %
  Gain on sale of securities   -     80   -100.0 %     180     284   -36.6 %
  Other service fees   186     189   -1.6 %     366     358   2.2 %
  Earnings on bank-owned life insurance   108     106   1.9 %     205     200   2.5 %
  Other   41     35   17.1 %     65     94   -30.9 %
    Total noninterest income   1,438     1,235   16.4 %     2,789     2,470   12.9 %
                                   
Noninterest expense:                                  
  Salaries and benefits   1,969     1,751   12.5 %     3,896     3,545   9.9 %
  Net occupancy   353     335   5.4 %     722     727   -0.7 %
  Equipment   301     254   18.5 %     576     508   13.4 %
  Marketing and public relations   192     215   -10.7 %     393     426   -7.7 %
  Professional fees   194     223   -13.0 %     374     403   -7.2 %
  Other   882     744   18.5 %     1,777     1,482   19.9 %
    Total noninterest expense   3,891     3,522   10.5 %     7,738     7,091   9.1 %
Income before income taxes   1,516     1,402   8.1 %     2,980     2,843   4.8 %
Income taxes   459     383   19.8 %     887     814   9.0 %
Net income   1,057     1,019   3.7 %     2,093     2,029   3.2 %
Less: Net income attributable to noncontrolling interest   -     -   -       -     -   -  
                                   
Net income attibutable to Elmira Savings Bank   1,057     1,019   3.7 %     2,093     2,029   3.2 %
                                   
Dividend on preferred stock   225     225   0.0 %     450     450   0.0 %
Income available to common shareholders $ 832   $ 794   4.8 %   $ 1,643   $ 1,579   4.1 %
                                   
                                   
Basic earnings per share $ 0.31   $ 0.29   6.9 %   $ 0.60   $ 0.58   3.4 %
                                   
Diluted earnings per share $ 0.30   $ 0.29   3.4 %   $ 0.60   $ 0.57   5.3 %
                                   
Weighted average shares outstanding - basic   2,717,506     2,706,983   0.4 %     2,716,710     2,703,787   0.5 %
                                   
Weighted average shares outstanding - diluted   2,734,970     2,776,116   -1.5 %     2,733,992     2,793,883   -2.1 %
                                   
Dividends per share $ 0.23   $ 0.23   0.0 %   $ 0.46   $ 0.46   0.0 %
                                   
                                   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    June 30, 2016     June 30, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 457,695   $ 4,744   4.15 %   $ 427,499   $ 4,570   4.27 %
Short-term investments     691     -   0.20       1,040     -   0.03  
Securities     53,202     447   3.36       74,952     563   3.01  
Total interest-earning assets     511,588     5,191   4.06       503,491     5,133   4.07  
                                     
Noninterest-earning assets     53,756                 61,047            
                                     
TOTAL ASSETS   $ 565,344               $ 564,538            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 384,003   $ 763   0.80     $ 361,447   $ 741   0.82  
Borrowings     52,055     374   2.84       74,000     563   3.01  
Total interest-bearing liabilities     436,058     1,137   1.04       435,447     1,304   1.19  
                                     
Noninterest-bearing liabilities     73,662                 73,728            
Shareholders' equity     55,624                 55,363            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 565,344               $ 564,538            
Interest rate spread               3.02 %               2.88 %
Net interest income/margin         $ 4,054   3.17 %         $ 3,829   3.04 %
                                     
                                     
                                     
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Six Months Ended  
    June 30, 2016     June 30, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 455,762   $ 9,473   4.16 %   $ 422,517   $ 9,032   4.28 %
Short-term investments     536     -   0.19       1,273     1   0.02  
Securities     56,416     951   3.37       78,350     1,195   3.06  
Total interest-earning assets     512,714     10,424   4.07       502,140     10,228   4.08  
                                     
Noninterest-earning assets     50,882                 57,624            
                                     
TOTAL ASSETS   $ 563,596               $ 559,764            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 379,304   $ 1,497   0.79     $ 359,861   $ 1,468   0.82  
Borrowings     55,526     773   2.76       72,917     1,106   3.01  
Total interest-bearing liabilities     434,830     2,270   1.04       432,778     2,574   1.19  
                                     
Noninterest-bearing liabilities     73,255                 71,241            
Shareholders' equity     55,511                 55,745            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 563,596               $ 559,764            
Interest rate spread               3.03 %               2.89 %
Net interest income/margin         $ 8,154   3.18 %         $ 7,654   3.05 %
                                     
                                     
                                     
    Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   6/30/2016     3/31/2016     12/31/2015     9/30/2015     6/30/2015  
                               
Operating Data                              
                               
  Net income   $ 1,057     $ 1,036     $ 1,036     $ 1,057     $ 1,019  
  Net interest income     4,054       4,100       4,128       3,852       3,829  
  Provision for loan losses     85       140       270       170       140  
  Net security gains     -       180       -       -       80  
  Non-interest income, ex. Net security gains     1,438       1,171       1,382       1,539       1,155  
  Non-interest expense     3,891       3,847       3,777       3,725       3,522  
                                         
Performance Statistics                                        
                                         
  Net interest margin     3.17 %     3.19 %     3.19 %     2.97 %     3.04 %
  Annualized return on average assets     0.75 %     0.74 %     0.73 %     0.73 %     0.72 %
  Annualized return on average equity     7.65 %     7.52 %     7.46 %     7.60 %     7.39 %
  Annualized net loan charge-offs to avg loans     0.01 %     0.07 %     0.18 %     0.10 %     0.11 %
  Net charge-offs (recoveries)     14       74       204       117       114  
  Efficiency ratio     70.8 %     70.6 %     68.5 %     69.1 %     69.5 %
                                         
Per Share Data                                        
                                         
  Basic earnings per share   $ 0.31     $ 0.30     $ 0.30     $ 0.31     $ 0.29  
  Diluted earnings per share     0.30       0.30       0.30       0.30       0.29  
  Dividend declared per share     0.23       0.23       0.23       0.23       0.23  
  Book value     16.69       16.59       16.53       16.49       16.34  
  Common stock price:                                        
    High     20.10       20.55       21.13       20.81       20.82  
    Low     18.06       16.83       18.41       19.05       19.43  
    Close     19.66       18.01       19.88       19.20       20.09  
  Weighted average common shares:                                        
    Basic     2,718       2,716       2,712       2,710       2,707  
    Fully diluted     2,735       2,733       2,731       2,730       2,776  
  End-of-period common shares:                                        
    Issued     2,832       2,828       2,821       2,821       2,821  
    Treasury     98       98       98       98       98  
                                         
                                         
Financial Condition Data:                                        
General                                        
  Total assets   $ 574,721     $ 560,020     $ 561,344     $ 566,228     $ 572,890  
  Loans, net     463,104       452,718       447,220       438,777       431,993  
  Intangibles     12,360       12,371       12,381       12,396       12,412  
  Total deposits     470,462       443,552       440,472       442,046       437,663  
                                           
    Noninterest-bearing     70,803       65,165       66,964       72,293       68,707  
                                             
    Savings     69,159       67,295       66,914       64,421       64,758  
    NOW     121,875       105,094       87,083       85,136       86,835  
    Money Market     25,172       25,281       23,382       19,912       20,678  
    Time deposits     183,453       180,717       196,129       200,284       196,685  
    Total interest-bearing deposits     399,659       378,387       373,508       369,753       368,956  
  Shareholders' equity     55,382       55,039       54,771       54,657       54,233  
                                         
Asset Quality                                        
                                         
  Non-performing assets   $ 5,622     $ 5,328     $ 4,943     $ 4,545     $ 4,430  
  Non-performing assets to total assets     0.98 %     0.95 %     0.88 %     0.80 %     0.77 %
  Allowance for loan losses     4,285       4,214       4,148       4,082       4,028  
  Allowance for loan losses to total loans     0.92 %     0.92 %     0.92 %     0.92 %     0.92 %
  Allowance for loan losses to non-performing loans     80.41 %     83.69 %     87.66 %     91.20 %     91.75 %
  Non-performing loans to total loans     1.15 %     1.10 %     1.05 %     1.01 %     1.01 %
                                         
Capitalization                                        
                                         
  Shareholders' equity to total assets     9.64 %     9.83 %     9.76 %     9.65 %     9.47 %

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