SOURCE: Elmira Savings Bank

Elmira Savings Bank

October 19, 2016 12:04 ET

Elmira Savings Bank Reports Third Quarter Earnings

ELMIRA, NY--(Marketwired - Oct 19, 2016) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,202,000 and $3,295,000 for the three and nine months ended September 30, 2016 compared to $1,057,000 and $3,086,000 for the same periods in 2015.

  • Diluted earnings per share were $.36 per share and $.96 per share for the three and nine months ended September 30, 2016 compared to $.30 per share and $.87 per share for the same periods in 2015. 

  • Return on average assets was .84% and .78% for the three and nine months ended September 30, 2016 compared to .73% for both the same periods in 2015.

  • Return on average equity was 8.54% and 7.89% for the three and nine months ended September 30, 2016 compared to 7.60% and 7.43% for the same periods in 2015.

"We are pleased with the increase in core earnings, supported by strong loan origination volume and deposit growth," said Thomas M. Carr, President and CEO. Carr continued, "Year over year through nine months, we have increased our noninterest income by 12%, our net interest income by 8%, and have expanded our net interest margin by 6%."

Net Income

Net income totaled $3,295,000 for the nine months ended September 30, 2016, an increase of $209,000 or 7% from the $3,086,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $496,000, an increase in net interest income of $859,000, and a decrease in the provision for loan losses of $48,000, offset by an increase in noninterest expense of $898,000 and an increase in tax expense of $296,000.

Net income totaled $1,202,000 for the three months ended September 30, 2016, an increase of $145,000 or 14% from the $1,057,000 recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $177,000, a decrease in the provision for loan losses of $83,000, and an increase in net interest income of $359,000, offset by an increase in noninterest expense of $251,000 and an increase in tax expense of $223,000.

Basic and diluted earnings per share for the nine months ended September 30, 2016 were both $.96 per share compared to $.89 per share and $.87 per share for the same period in 2015. Basic and diluted earnings per share for the three months ended September 30, 2016 were both $.36 per share compared to $.31 per share and $.30 per share for the same period in 2015.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2016 was 3.20% compared to 3.03% for the same period in 2015. The yield on average earning assets was 4.06% for the nine months ended September 30, 2016 compared to 4.05% for the same period in 2015. The average cost of interest-bearing liabilities was 1.01% for the nine months ended September 30, 2016 compared to 1.19% for the same period in 2015.

The net interest margin for the three months ended September 30, 2016 was 3.24% compared to 2.97% for the same period in 2015. The average yield on earning assets was 4.04% for the three months ended September 30, 2016 compared to 4.00% for the same period in 2015. The average cost of interest-bearing liabilities was 0.96% for the three months ended September 30, 2016 compared to 1.20% for the same period in 2015.

Assets

Total assets increased $6.1 million or 1.1% to $567.5 million at September 30, 2016 compared to $561.3 million at December 31, 2015. Loans, including loans held for sale, increased 1.9% to $464.1 million at September 30, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $7.5 million from December 31, 2015 to September 30, 2016.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 1.12% at September 30, 2016 from 1.05% at December 31, 2015. Net loan charge-offs to average loans for the nine months ended September 30, 2016 of 0.04% decreased from 0.08% for the nine months ended September 30, 2015. The allowance for loan losses was 0.94% of total loans at September 30, 2016 and 0.92% of total loans at December 31, 2015.

Liabilities

Deposits total $463.4 million at September 30, 2016, an increase of $22.9 million or 5.2%. The $22.9 million increase consists of a $13.7 million increase in time deposits, a $5.1 million increase in noninterest-bearing accounts, a $2.1 million increase in savings accounts, and a $2.3 million increase in money market accounts, partially offset by a $296,000 decrease in interest bearing transaction accounts. Borrowed funds decreased by $17.5 million or 29.4%.

Shareholders' Equity

Shareholders' equity increased $1.0 million to $55.8 million at September 30, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.80 at September 30, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.69 for the three and nine months ended for both September 30, 2016 and 2015.

Elmira Savings Bank, with $567.5 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)   September 30,     December 31,        
    2016     2015     % Change  
ASSETS                  
                   
Cash and due from banks   $ 11,494     $ 5,352     114.8 %
Federal funds sold and other short-term investments     100       102     -2.0 %
  Total cash and cash equivalents     11,594       5,454     112.6 %
                       
Securities available for sale, at fair value     35,250       42,709     -17.5 %
Securities held to maturity - fair value $9,062 at September 30, 2016 and $9,010 at December 31, 2015     8,645       9,003     -4.0 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     9,916       11,108     -10.7 %
                       
Loans held for sale     4,485       3,630     23.6 %
                       
Loans receivable     459,570       451,368     1.8 %
Less: Allowance for loan losses     4,319       4,148     4.1 %
  Net loans     455,251       447,220     1.8 %
                       
Premises and equipment, net     12,166       12,130     0.3 %
Bank-owned life insurance     13,492       13,188     2.3 %
Accrued interest receivable     1,179       1,541     -23.5 %
Intangible assets, net     29       61     -52.5 %
Goodwill     12,320       12,320     0.0 %
Other assets     3,123       2,980     4.8 %
  Total assets   $ 567,450     $ 561,344     1.1 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 463,414     $ 440,472     5.2 %
Borrowings     42,000       59,525     -29.4 %
Other liabilities     6,244       6,576     -5.0 %
  Total liabilities     511,658       506,573     1.0 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at September 30, 2016 and at December 31, 2015     9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,838,991 shares issued at September 30, 2016 and 2,820,745 shares issued at December 31, 2015     2,839       2,821     0.6 %
Additional paid-in capital     41,517       41,243     0.7 %
Retained earnings     4,222       3,488     21.0 %
Treasury stock, at cost - 98,118 shares at September 30, 2016 and December 31, 2015     (2,907 )     (2,907 )   0.0 %
Accumulated other comprehensive income     368       373     -1.3 %
  Total Elmira Savings Bank shareholders' equity     55,739       54,718     1.9 %
Noncontrolling interest     53       53     0.0 %
  Total shareholders' equity     55,792       54,771     1.9 %
  Total liabilities and shareholders' equity   $ 567,450     $ 561,344     1.1 %
                         
                         
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
                             
    Three Months Ended     Nine Months Ended    
    September 30,     September 30,    
(in thousands, except for per share data)   2016   2015   % Change     2016   2015   % Change  
                             
Interest and dividend income:                            
  Interest and fees on loans   $ 4,832   $ 4,624   4.5 %   $ 14,305   $ 13,656   4.8 %
  Interest and dividends on securities                                    
    Taxable     231     331   -30.2 %     758     1,063   -28.7 %
    Non-taxable     203     245   -17.1 %     627     709   -11.6 %
    Total interest and dividend income     5,266     5,200   1.3 %     15,690     15,428   1.7 %
                                     
Interest expense:                                    
  Interest on deposits     785     786   -0.1 %     2,282     2,254   1.2 %
  Interest on borrowings     270     562   -52.0 %     1,043     1,668   -37.5 %
    Total interest expense     1,055     1,348   -21.7 %     3,325     3,922   -15.2 %
Net interest income     4,211     3,852   9.3 %     12,365     11,506   7.5 %
Provision for loan losses     87     170   -48.8 %     312     360   -13.3 %
Net interest income after provision for loan losses     4,124     3,682   12.0 %     12,053     11,146   8.1 %
                                     
Noninterest income:                                    
  Service fees     387     376   2.9 %     1,089     1,099   -0.9 %
  Gain on sale of loans held for sale     1,019     870   17.1 %     2,290     1,681   36.2 %
  Gain on sale of securities     -     -   0.0 %     180     284   -36.6 %
  Other service fees     190     174   9.2 %     556     532   4.5 %
  Earnings on bank-owned life insurance     99     98   1.0 %     304     298   2.0 %
  Other     21     21   0.0 %     86     115   -25.2 %
    Total noninterest income     1,716     1,539   11.5 %     4,505     4,009   12.4 %
                                     
Noninterest expense:                                    
  Salaries and benefits     2,087     1,862   12.1 %     5,983     5,407   10.7 %
  Net occupancy     353     319   10.7 %     1,075     1,046   2.8 %
  Equipment     310     272   14.0 %     886     780   13.6 %
  Marketing and public relations     186     209   -11.0 %     579     635   -8.8 %
  Professional fees     148     225   -34.2 %     522     628   -16.9 %
  Other     892     838   6.4 %     2,669     2,320   15.0 %
    Total noninterest expense     3,976     3,725   6.7 %     11,714     10,816   8.3 %
Income before income taxes     1,864     1,496   24.6 %     4,844     4,339   11.6 %
Income taxes     662     439   50.8 %     1,549     1,253   23.6 %
Net income     1,202     1,057   13.7 %     3,295     3,086   6.8 %
Less: Net income attributable to noncontrolling interest     -     -   -       -     -   -  
                                     
Net income attibutable to Elmira Savings Bank     1,202     1,057   13.7 %     3,295     3,086   6.8 %
                                     
Dividend on preferred stock     225     225   0.0 %     675     675   0.0 %
Income available to common shareholders   $ 977   $ 832   17.4 %   $ 2,620   $ 2,411   8.7 %
                                     
                                     
Basic earnings per share   $ 0.36   $ 0.31   16.1 %   $ 0.96   $ 0.89   7.9 %
                                     
Diluted earnings per share   $ 0.36   $ 0.30   20.0 %   $ 0.96   $ 0.87   10.3 %
                                     
Weighted average shares outstanding - basic     2,724,160     2,710,219   0.5 %     2,719,216     2,705,958   0.5 %
                                     
Weighted average shares outstanding - diluted     2,740,734     2,730,365   0.4 %     2,736,262     2,772,737   -1.3 %
                                     
Dividends per share   $ 0.23   $ 0.23   0.0 %   $ 0.69   $ 0.69   0.0 %
                                     
                                     
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    September 30, 2016     September 30, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 464,996   $ 4,832   4.13 %   $ 440,467   $ 4,624   4.17 %
Short-term investments     483     -   0.20       675     -   0.03  
Securities     52,542     434   3.30       76,319     576   3.01  
Total interest-earning assets     518,021     5,266   4.04       517,461     5,200   4.00  
                                     
Noninterest-earning assets     53,323                 57,683            
                                     
TOTAL ASSETS   $ 571,344               $ 575,144            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 394,097   $ 785   0.79     $ 371,492   $ 786   0.84  
Borrowings     42,249     270   2.50       73,196     562   3.00  
Total interest-bearing liabilities     436,346     1,055   0.96       444,688     1,348   1.20  
                                     
Noninterest-bearing liabilities     79,033                 75,287            
Shareholders' equity     55,965                 55,169            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 571,344               $ 575,144            
Interest rate spread               3.08 %               2.80 %
Net interest income/margin         $ 4,211   3.24 %         $ 3,852   2.97 %
                                     
                                     
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Nine Months Ended  
    September 30, 2016     September 30, 2015  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 458,862   $ 14,305   4.15 %   $ 428,567   $ 13,656   4.25 %
Short-term investments     518     1   0.19       1,072     -   0.03  
Securities     55,116     1,384   3.35       77,665     1,772   3.04  
Total interest-earning assets     514,496     15,690   4.06       507,304     15,428   4.05  
                                     
Noninterest-earning assets     51,701                 57,643            
                                     
TOTAL ASSETS   $ 566,197               $ 564,947            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 384,271   $ 2,282   0.79     $ 363,781   $ 2,254   0.83  
Borrowings     51,068     1,043   2.68       73,011     1,668   3.01  
Total interest-bearing liabilities     435,339     3,325   1.01       436,792     3,922   1.19  
                                     
Noninterest-bearing liabilities     75,195                 72,604            
Shareholders' equity     55,663                 55,551            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 566,197               $ 564,947            
Interest rate spread               3.05 %               2.86 %
Net interest income/margin         $ 12,365   3.20 %         $ 11,506   3.03 %
             
             
          Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   9/30/2016     6/30/2016     3/31/2016     12/31/2015     9/30/2015  
                               
Operating Data                              
                               
  Net income   $ 1,202     $ 1,057     $ 1,036     $ 1,036     $ 1,057  
  Net interest income     4,211       4,054       4,100       4,128       3,852  
  Provision for loan losses     87       85       140       270       170  
  Net security gains     -       -       180       -       -  
  Non-interest income, ex. Net security gains     1,716       1,438       1,171       1,382       1,539  
  Non-interest expense     3,976       3,891       3,847       3,777       3,725  
                                           
Performance Statistics                                        
                                         
  Net interest margin     3.24 %     3.17 %     3.19 %     3.19 %     2.97 %
  Annualized return on average assets     0.84 %     0.75 %     0.74 %     0.73 %     0.73 %
  Annualized return on average equity     8.54 %     7.65 %     7.52 %     7.46 %     7.60 %
  Annualized net loan charge-offs to avg loans     0.05 %     0.01 %     0.07 %     0.18 %     0.10 %
  Net charge-offs (recoveries)     53       14       74       204       117  
  Efficiency ratio     67.1 %     70.8 %     70.6 %     68.5 %     69.1 %
                                           
Per Share Data                                        
                                         
  Basic earnings per share   $ 0.36     $ 0.31     $ 0.30     $ 0.30     $ 0.31  
  Diluted earnings per share     0.36       0.30       0.30       0.30       0.30  
  Dividend declared per share     0.23       0.23       0.23       0.23       0.23  
  Book value     16.80       16.69       16.59       16.53       16.49  
  Common stock price:                                        
    High     21.50       20.10       20.55       21.13       20.81  
    Low     18.85       18.06       16.83       18.41       19.05  
    Close     19.91       19.66       18.01       19.88       19.20  
  Weighted average common shares:                                        
    Basic     2,724       2,718       2,716       2,712       2,710  
    Fully diluted     2,741       2,735       2,733       2,731       2,730  
  End-of-period common shares:                                        
    Issued     2,839       2,832       2,828       2,821       2,821  
    Treasury     98       98       98       98       98  
                                         
                                         
Financial Condition Data:                                        
General                                        
  Total assets   $ 567,450     $ 574,721     $ 560,020     $ 561,344     $ 566,228  
  Loans, net     455,251       463,104       452,718       447,220       438,777  
  Intangibles     12,349       12,360       12,371       12,381       12,396  
  Total deposits     463,414       470,462       443,552       440,472       442,046  
                                           
    Noninterest-bearing     72,102       70,803       65,165       66,964       72,293  
                                             
    Savings     69,019       69,159       67,295       66,914       64,421  
    NOW     86,787       121,875       105,094       87,083       85,136  
    Money Market     25,715       25,172       25,281       23,382       19,912  
    Time deposits     209,791       183,453       180,717       196,129       200,284  
    Total interest-bearing deposits     391,312       399,659       378,387       373,508       369,753  
                                             
  Shareholders' equity     55,792       55,382       55,039       54,771       54,657  
                                           
Asset Quality                                        
                                         
  Non-performing assets   $ 5,345     $ 5,622     $ 5,328     $ 4,943     $ 4,545  
  Non-performing assets to total assets     0.94 %     0.98 %     0.95 %     0.88 %     0.80 %
  Allowance for loan losses     4,319       4,285       4,214       4,148       4,082  
  Allowance for loan losses to total loans     0.94 %     0.92 %     0.92 %     0.92 %     0.92 %
  Allowance for loan losses to non-performing loans     85.00 %     80.41 %     83.69 %     87.66 %     91.20 %
  Non-performing loans to total loans     1.12 %     1.15 %     1.10 %     1.05 %     1.01 %
                                           
Capitalization                                        
  Shareholders' equity to total assets     9.83 %     9.64 %     9.83 %     9.76 %     9.65 %
                                           
                                           

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