SOURCE: Elmira Savings Bank

Elmira Savings Bank

July 22, 2015 12:08 ET

Elmira Savings Bank Reports Second Quarter Earnings

ELMIRA, NY--(Marketwired - Jul 22, 2015) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,019,000 and $2,029,000 for the three and six months ended June 30, 2015 compared to $1,099,000 and $2,159,000 for the same periods in 2014.

  • Diluted earnings per share were $.29 per share and $.57 per share for the three and six months ended June 30, 2015 compared to $.31 per share and $.61 per share for the same periods in 2014.

  • Return on average assets was .72% and .73% for the three and six months ended June 30, 2015 compared to .86% and .85% for the same periods in 2014.

  • Return on average equity was 7.39% and 7.34% for the three and six months ended June 30, 2015 compared to 7.95% and 7.89% for the same periods in 2014.

"During the first six months of 2015, despite lower earnings, the Bank experienced an increase in loan originations of 34% over the same period one year ago, resulting in 5% growth in the loan portfolio. Additionally, we have experienced deposit growth of 4% since the beginning of the year," said Thomas M. Carr, President and CEO. Carr continued, "We also have been very pleased with our activity in our Watkins Glen branch, which opened in March."

Net Income

Net income totaled $2,029,000 for the six months ended June 30, 2015, a decrease of $130,000 or 6% from the $2,159,000 of net income recorded for the same period in 2014. This decrease was the net result of a decrease in noninterest income of $93,000, an increase in the provision for loan losses of $61,000, and an increase in noninterest expense of $184,000, offset by an increase in net interest income of $62,000 and a decrease in tax expense of $146,000.

Net income totaled $1,019,000 for the three months ended June 30, 2015, a decrease of $80,000 or 7% from the $1,099,000 recorded for the same period in 2014. This decrease was the net result of a decrease in noninterest income of $39,000, an increase in the provision for loan losses of $65,000, and an increase in noninterest expense of $178,000, offset by an increase in net interest income of $110,000 and a decrease in tax expense of $92,000.

Net income of $1,019,000 for the current quarter ended June 30, 2015 increased $9,000 from net income for the preceding quarter ended March 31, 2015.

Basic and diluted earnings per share for the six months ended June 30, 2015 were $.58 per share and $.57 per share compared to $.64 per share and $.61 per share for the same period in 2014. Basic and diluted earnings per share for the three months ended June 30, 2015 were both $.29 per share compared to $.33 per share and $.31 per share for the same period in 2014.

Net Interest Margin

The net interest margin for the six months ended June 30, 2015 was 3.05% compared to 3.25% for the same period in 2014. The yield on average earning assets was 4.08% for the six months ended June 30, 2015 compared to 4.28% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the six months ended June 30, 2015 compared to 1.22% for the same period in 2014.

The net interest margin for the three months ended June 30, 2015 was 3.04% compared to 3.19% for the same period in 2014. The average yield on earning assets was 4.07% for the three months ended June 30, 2015 compared to 4.22% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the three months ended June 30, 2015 compared to 1.22% for the same period in 2014.

Assets

Total assets increased $26.9 million or 4.9% to $572.9 million at June 30, 2015 compared to $546.0 million at December 31, 2014. Loans, including loans held for sale, increased 5.2% to $440.1 million at June 30, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $7.2 million from December 31, 2014 to June 30, 2015.

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to 1.01% at June 30, 2015 from 1.13% at December 31, 2014. Net loan charge-offs to average loans for the six months ended June 30, 2015 of 0.06% decreased from 0.09% for the six months ended June 30, 2014. The allowance for loan losses was 0.92% of total loans at June 30, 2015 and 0.95% of total loans at December 31, 2014.

Liabilities

Deposits total $437.7 million at June 30, 2015, an increase of $15.1 million or 3.6%. The $15.1 million increase consists of a $7.9 million increase in NOW accounts, a $6.7 million increase in noninterest-bearing accounts, a $0.2 million increase in money market accounts, and a $0.8 million increase in time deposits, partially offset by a $0.5 million decrease in savings accounts. Borrowed funds increased by $12.0 million or 19.4%.

Shareholders' Equity

Shareholders' equity decreased $1.3 million to $54.2 million at June 30, 2015 compared to December 31, 2014. The decrease is primarily the result of the repurchase of a warrant in May 2015 that had been issued to the United States Treasury Department at a purchase price of $1.5 million. The current level of shareholders' equity equates to a book value per share of $16.34 at June 30, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2015 and 2014.

Elmira Savings Bank, with $572.9 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; 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)   June 30,     December 31,        
    2015     2014     % Change  
ASSETS                      
                       
Cash and due from banks   $ 17,407     $ 7,959     118.7 %
Federal funds sold and other short-term investments     153       606     -74.8 %
  Total cash and cash equivalents     17,560       8,565     105.0 %
                       
Securities available for sale, at fair value     58,422       65,624     -11.0 %
Securities held to maturity - fair value $9,393 at June 30, 2015 and $7,641 at December 31, 2014    
9,213
     
7,389
   
24.7
%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     11,647       11,182     4.2 %
                       
Loans held for sale     4,064       787     416.4 %
                       
Loans receivable     436,021       417,359     4.5 %
Less: Allowance for loan losses     4,028       3,974     1.4 %
  Net loans     431,993       413,385     4.5 %
                       
Premises and equipment, net     10,383       9,475     9.6 %
Bank-owned life insurance     12,990       12,790     1.6 %
Accrued interest receivable     1,505       1,566     -3.9 %
Intangible assets, net     92       125     -26.4 %
Goodwill     12,320       12,320     0.0 %
Other assets     2,701       2,761     -2.2 %
  Total assets   $ 572,890     $ 545,969     4.9 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 437,663     $ 422,561     3.6 %
Borrowings     74,000       62,000     19.4 %
Other liabilities     6,994       5,915     18.2 %
  Total liabilities     518,657       490,476     5.7 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at June 30, 2015 and at December 31, 2014    
9,700
     
9,700
   
0.0
%
Common stock, $1 par value; authorized 5,000,000 shares; 2,820,745 shares issued at June 30, 2015 and 2,809,364 shares issued at December 31, 2014    
2,821
     
2,809
   
0.4
%
Additional paid-in capital     41,128       42,365     -2.9 %
Retained earnings     3,097       2,769     11.8 %
Treasury stock, at cost - 98,118 shares at June 30, 2015 and 104,418 shares at December 31, 2014    
(2,907
)    
(3,053
)  
-4.8
%
Accumulated other comprehensive income     340       849     -60.0 %
  Total Elmira Savings Bank shareholders' equity     54,179       55,439     -2.3 %
Noncontrolling interest     54       54     0.0 %
  Total shareholders' equity     54,233       55,493     -2.3 %
  Total liabilities and shareholders' equity   $ 572,890     $ 545,969     4.9 %
   
   
   
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)   2015   2014   % Change     2015   2014   % Change  
                                     
Interest and dividend income:                                    
  Interest and fees on loans   $ 4,570   $ 4,302   6.2 %   $ 9,032   $ 8,699   3.8 %
  Interest and dividends on securities                                    
    Taxable     330     412   -19.9 %     732     876   -16.4 %
    Non-taxable     233     204   14.2 %     464     408   13.7 %
    Total interest and dividend income     5,133     4,918   4.4 %     10,228     9,983   2.5 %
                                     
Interest expense:                                    
  Interest on deposits     741     745   -0.5 %     1,468     1,487   -1.3 %
  Interest on borrowings     563     454   24.0 %     1,106     904   22.3 %
    Total interest expense     1,304     1,199   8.8 %     2,574     2,391   7.7 %
Net interest income     3,829     3,719   3.0 %     7,654     7,592   0.8 %
Provision for loan losses     140     75   86.7 %     190     129   47.3 %
Net interest income after provision for loan losses     3,689     3,644   1.2 %     7,464     7,463   0.0 %
                                     
Noninterest income:                                    
  Service fees     368     365   0.8 %     723     694   4.2 %
  Gain on sale of loans held for sale     457     345   32.5 %     811     793   2.3 %
  Gain on sale of securities     80     205   -61.0 %     284     421   -32.5 %
  Other service fees     189     176   7.4 %     358     340   5.3 %
  Earnings on bank-owned life insurance     106     131   -19.1 %     200     222   -9.9 %
  Other     35     52   -32.7 %     94     93   1.1 %
    Total noninterest income     1,235     1,274   -3.1 %     2,470     2,563   -3.6 %
                                     
Noninterest expense:                                    
  Salaries and benefits     1,751     1,732   1.1 %     3,545     3,571   -0.7 %
  Net occupancy     335     331   1.2 %     727     747   -2.7 %
  Equipment     254     250   1.6 %     508     500   1.6 %
  Marketing and public relations     215     204   5.4 %     426     404   5.4 %
  Professional fees     223     195   14.4 %     403     356   13.2 %
  Other     744     632   17.7 %     1,482     1,329   11.5 %
    Total noninterest expense     3,522     3,344   5.3 %     7,091     6,907   2.7 %
Income before income taxes     1,402     1,574   -10.9 %     2,843     3,119   -8.8 %
Income taxes     383     475   -19.4 %     814     960   -15.2 %
Net income     1,019     1,099   -7.3 %     2,029     2,159   -6.0 %
Less: Net income attributable to noncontrolling interest     -     -   -       -     -   -  
                                     
Net income attibutable to Elmira Savings Bank     1,019     1,099   -7.3 %     2,029     2,159   -6.0 %
                                     
Dividend on preferred stock     225     225   0.0 %     450     450   0.0 %
Income available to common shareholders   $ 794   $ 874   -9.2 %   $ 1,579   $ 1,709   -7.6 %
                                     
                                     
Basic earnings per share   $ 0.29   $ 0.33   -12.1 %   $ 0.58   $ 0.64   -9.4 %
                                     
Diluted earnings per share   $ 0.29   $ 0.31   -6.5 %   $ 0.57   $ 0.61   -6.6 %
                                     
Weighted average shares outstanding - basic     2,706,983     2,674,098   1.2 %     2,703,787     2,665,640   1.4 %
                                     
Weighted average shares outstanding - diluted     2,776,116     2,798,180   -0.8 %     2,793,883     2,794,030   0.0 %
                                     
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 Six Months Ended  
    June 30, 2015     June 30, 2014  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 422,517   $ 9,032   4.28 %   $ 389,447   $ 8,699   4.48 %
Short-term investments     1,273     1   0.02       1,028     -   0.02  
Securities     78,350     1,195   3.06       76,875     1,284   3.34  
Total interest-earning assets     502,140     10,228   4.08       467,350     9,983   4.28  
                                     
Noninterest-earning assets     57,624                 43,688            
                                     
TOTAL ASSETS   $ 559,764               $ 511,038            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 359,861   $ 1,468   0.82     $ 335,755   $ 1,487   0.89  
Borrowings     72,917     1,106   3.01       57,141     904   3.14  
Total interest-bearing liabilities     432,778     2,574   1.19       392,896     2,391   1.22  
                                     
Noninterest-bearing liabilities     71,241                 62,957            
Shareholders' equity     55,745                 55,185            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 559,764               $ 511,038            
Interest rate spread               2.89 %               3.06 %
Net interest income/margin         $ 7,654   3.05 %         $ 7,592   3.25 %
   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
   
(Dollars in Thousands)   For the Three Months Ended  
    June 30, 2015     June 30, 2014  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 427,499   $ 4,570   4.27 %   $ 390,122   $ 4,302   4.41 %
Short-term investments     1,040     -   0.03       1,000     -   0.02  
Securities     74,952     563   3.01       74,772     616   3.30  
Total interest-earning assets     503,491     5,133   4.07       465,894     4,918   4.22  
                                     
Noninterest-earning assets     61,047                 44,874            
                                     
TOTAL ASSETS   $ 564,538               $ 510,768            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 361,447   $ 741   0.82     $ 336,018   $ 745   0.89  
Borrowings     74,000     563   3.01       55,882     454   3.22  
Total interest-bearing liabilities     435,447     1,304   1.19       391,900     1,199   1.22  
                                     
Noninterest-bearing liabilities     73,728                 63,452            
Shareholders' equity     55,363                 55,416            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 564,538               $ 510,768            
Interest rate spread               2.88 %               3.00 %
Net interest income/margin         $ 3,829   3.04 %         $ 3,719   3.19 %
       
       
       
    Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   6/30/2015     3/31/2015     12/31/2014     9/30/2014     6/30/2014  
                                         
Operating Data                                        
                                         
  Net income   $ 1,019     $ 1,010     $ 1,031     $ 475     $ 1,099  
  Net interest income     3,829       3,825       4,018       3,802       3,719  
  Provision for loan losses     140       50       140       138       75  
  Net security gains     80       204       -       -       205  
  Non-interest income, ex. Net security gains     1,155       1,031       1,039       1,155       1,069  
  Non-interest expense     3,522       3,569       3,406       4,190       3,344  
                                         
Performance Statistics                                        
                                         
  Net interest margin     3.04 %     3.07 %     3.24 %     3.18 %     3.19 %
  Annualized return on average assets     0.72 %     0.74 %     0.76 %     0.36 %     0.86 %
  Annualized return on average equity     7.39 %     7.29 %     7.37 %     3.36 %     7.95 %
  Annualized net loan charge-offs to avg loans     0.11 %     0.02 %     0.09 %     -0.01 %     0.15 %
  Net charge-offs (recoveries)     114       21       94       (7 )     143  
  Efficiency ratio     69.5 %     70.5 %     67.4 %     84.5 %     67.0 %
                                         
Per Share Data                                        
                                         
  Basic earnings per share   $ 0.29     $ 0.29     $ 0.30     $ 0.09     $ 0.33  
  Diluted earnings per share     0.29       0.28       0.29       0.09       0.31  
  Dividend declared per share     0.23       0.23       0.23       0.23       0.23  
  Book value     16.34       16.96       16.91       16.76       16.87  
  Common stock price:                                        
    High     20.82       23.00       23.00       24.54       24.78  
    Low     19.43       19.99       20.50       20.16       21.92  
    Close     20.09       20.40       23.00       22.25       24.50  
  Weighted average common shares:                                        
    Basic     2,707       2,701       2,693       2,684       2,674  
    Fully diluted     2,776       2,812       2,808       2,803       2,798  
  End-of-period common shares:                                        
    Issued     2,821       2,813       2,809       2,809       2,799  
    Treasury     98       98       104       104       104  
                                           
Financial Condition Data:                                        
General                                        
  Total assets   $ 572,890     $ 562,185     $ 545,969     $ 533,726     $ 515,053  
  Loans, net     431,993       416,235       413,385       406,168       391,611  
  Intangibles     12,412       12,428       12,445       12,464       12,486  
  Total deposits     437,663       426,075       422,561       405,681       399,219  
                                             
    Noninterest-bearing     68,707       64,442       62,019       68,871       61,221  
                                             
    Savings     64,758       63,776       65,287       62,898       63,433  
    NOW     86,835       78,169       78,920       75,246       73,116  
    Money Market     20,678       22,112       20,512       21,498       22,702  
    Time deposits     196,685       197,576       195,823       177,168       178,747  
    Total interest-bearing deposits     368,956       361,633       360,542       336,810       337,998  
  Shareholders' equity     54,233       55,818       55,493       55,088       55,202  
                                         
Asset Quality                                        
                                         
  Non-performing assets   $ 4,430     $ 4,790     $ 4,699     $ 4,575     $ 4,281  
  Non-performing assets to total assets     0.77 %     0.85 %     0.86 %     0.86 %     0.83 %
  Allowance for loan losses     4,028       4,002       3,974       3,928       3,783  
  Allowance for loan losses to total loans     0.92 %     0.95 %     0.95 %     0.96 %     0.96 %
  Allowance for loan losses to non-performing loans     91.75 %     83.55 %     84.57 %     88.61 %     89.90 %
  Non-performing loans to total loans     1.01 %     1.14 %     1.13 %     1.08 %     1.06 %
                                         
Capitalization                                        
                                         
  Shareholders' equity to total assets     9.47 %     9.93 %     10.16 %     10.32 %     10.72 %

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