Elmira Savings Bank Reports Third Quarter Earnings

| Source: Elmira Savings Bank NY (The) Elmira Savings Bank NY (The)

ELMIRA, New York, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $901,000 and $2,546,000 for the three and nine months ended September 30, 2019 compared to $1,010,000 and $3,304,000 for the same periods in 2018.
  • Diluted earnings per share were $.26 per share and $.73 per share for the three and nine months ended September 30, 2019 compared to $.29 per share and $.95 per share for the same periods in 2018. 
  • Return on average assets was .58% and .56% for the three and nine months ended September 30, 2019 compared to .71% and .79% for the three and nine months ended September 30, 2018.
  • Return on average equity was 6.08% and 5.80% for the three and nine months ended September 30, 2019 compared to 6.94% and 7.69% for the same periods in 2018.

“We are pleased with our loan and deposit growth in 2019 and continue to focus on improving profitability,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $2,546,000 for the nine months ended September 30, 2019, a decrease of $758,000 or 23% from the $3,304,000 of net income recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $652,000, an increase in the provision for loan losses of $327,000, and a decrease in net interest income of $76,000, offset by an increase in noninterest income of $21,000 and a decrease in tax expense of $276,000.

Net income totaled $901,000 for the three months ended September 30, 2019, a decrease of $109,000 or 11% from the $1,010,000 recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $152,000, an increase in the provision for loan losses of $100,000, and a decrease in net interest income of $18,000, offset by an increase in noninterest income of $150,000 and a decrease in tax expense of $11,000.

Basic and diluted earnings per share for the nine months ended September 30, 2019 were both $.73 per share compared to $.95 per share for both for the same period in 2018.  Basic and diluted earnings per share for the three months ended September 30, 2019 were both $.26 per share compared to $.29 per share for both for the same period in 2018. 

Net Interest Margin

The net interest margin for the nine months ended September 30, 2019 was 3.05% compared to 3.32% for the same period in 2018.  The yield on average earning assets was 4.31% for the nine months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.46% for the nine months ended September 30, 2019 compared to 1.02% for the same period in 2018.

The net interest margin for the three months ended September 30, 2019 was 2.97% compared to 3.26% for the same period in 2018.  The average yield on earning assets was 4.31% for the three months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.55% for the three months ended September 30, 2019 compared to 1.09% for the same period in 2018.

Assets

Total assets increased $25.6 million or 4.3% to $615.6 million at September 30, 2019 compared to $590.0 million at December 31, 2018.  Loans, including loans held for sale, increased 7.4% to $519.6 million at September 30, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $10.7 million from December 31, 2018 to September 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.92% at September 30, 2019 and 0.94% at December 31, 2018.  Net loan charge-offs to average loans for the nine months ended September 30, 2019 was 0.10% and was 0.07% for the nine months ended September 30, 2018.  The allowance for loan losses was 0.88% of total loans at September 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $520.0 million at September 30, 2019, an increase of $28.5 million or 5.8%.  The $28.5 million increase consists of a $37.9 million increase in time deposits, a $923,000 increase in noninterest-bearing accounts, and a $1.5 million increase in money market accounts, offset by a $6.3 million decrease in savings accounts and a $5.5 million decrease in interest bearing transaction accounts.  Borrowed funds totaled $29.0 million as of September 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $473,000 to $58.4 million at September 30, 2019 compared to December 31, 2018.  The current level of shareholders’ equity equates to a book value per share of $16.62 at September 30, 2019, compared to $16.52 at December 31, 2018.  Dividends paid for common shareholders were $0.23 and $0.69 for the three and nine months ended September 30, 2019 and were $0.23 and $0.68 for the three and nine months ended September 30, 2018.  

Elmira Savings Bank, with $615.6 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 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.

For further information contact:
Thomas M. Carr, President & CEO
Elmira Savings Bank
333 East Water Street
Elmira, New York 14901
(607) 735-8660
tcarr@elmirasavingsbank.com


  
ELMIRA SAVINGS BANK 
CONSOLIDATED BALANCE SHEET 
(unaudited) 
            
(in thousands, except for share and per share data) September 30, December 31,     
    2019 2018 % Change   
ASSETS           
            
Cash and due from banks  $ 18,608 $ 19,429 -4.2%   
Federal funds sold and other short-term investments92 94 -2.1%   
Total cash and cash equivalents  18,700 19,523 -4.2%   
            
Securities available for sale, at fair value 14,302 25,051 -42.9%   
Securities held to maturity - fair value $7,375         
  at September 30, 2019, and $7,638 at December 31, 20187,160 7,518 -4.8%   
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost10,061 9,462 6.3%   
            
Loans held for sale  3,339 1,392 139.9%   
            
Loans receivable  516,309 482,272 7.1%   
Less: Allowance for loan losses  4,559 4,372 4.3%   
Net loans   511,750 477,900 7.1%   
            
Premises and equipment, net  18,517 16,846 9.9%   
Bank-owned life insurance  14,819 14,444 2.6%   
Accrued interest receivable  1,631 1,566 4.2%   
Goodwill   12,320 12,320 0.0%   
Other assets   3,002 4,018 -25.3%   
Total assets   $ 615,601 $ 590,040 4.3%   
            
LIABILITIES AND SHAREHOLDERS' EQUITY         
            
Deposits   $ 520,030 $ 491,517 5.8%   
Borrowings   29,000 31,000 -6.5%   
Other liabilities   8,149 9,574 -14.9%   
Total liabilities  557,179 532,091 4.7%   
            
Shareholders' equity:          
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares        
  authorized; 10,000 shares issued at September 30, 2019 and at December 31, 2018   9,700 9,700 0.0%   
Common stock, $1 par value; 5,000,000 shares authorized; 3,606,089 shares        
  issued at September 30, 2019 and 3,597,605 shares issued at December 31, 2018   3,606 3,598 0.2%   
Additional paid-in capital  53,944 53,784 0.3%   
Retained earnings  3,299 3,176 3.9%   
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares        
  at September 30, 2019 and December 31, 2018 (12,202) (12,202) 0.0%   
Accumulated other comprehensive income (loss) 25 (158) -115.8%   
Total Elmira Savings Bank shareholders' equity 58,372 57,898 0.8%   
Noncontrolling interest  50 51 -2.0%   
Total shareholders' equity  58,422 57,949 0.8%   
Total liabilities and shareholders' equity $ 615,601 $ 590,040 4.3%   
  


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) 2019 2018 % Change 2019 2018 % Change   
                
Interest and dividend income:               
Interest and fees on loans $5,568 $4,896 13.7% $16,215 $14,478 12.0%   
Interest and dividends on securities               
Taxable  234  246 -4.9%  759  742 2.3%   
Non-taxable  107  118 -9.3%  331  356 -7.0%   
Total interest and dividend income  5,909  5,260 12.3%  17,305  15,576 11.1%   
                
Interest expense:               
Interest on deposits  1,627  932 74.6%  4,407  2,509 75.6%   
Interest on borrowings  210  238 -11.8%  629  722 -12.9%   
Total interest expense  1,837  1,170 57.0%  5,036  3,231 55.9%   
Net interest income  4,072  4,090 -0.4%  12,269  12,345 -0.6%   
Provision for loan losses  250  150 66.7%  544  217 150.7%   
Net interest income after provision for loan losses  3,822  3,940 -3.0%  11,725  12,128 -3.3%   
                
Noninterest income:               
Service fees  353  344 2.6%  1,054  1,085 -2.9%   
Gain on sale of loans held for sale  452  392 15.3%  1,166  1,178 -1.0%   
Gain on sale of securities  90  - -   90  - -    
Other service fees  250  214 16.8%  664  615 8.0%   
Earnings on bank-owned life insurance  98  96 2.1%  284  289 -1.7%   
Other  61  108 -43.5%  157  227 -30.8%   
Total noninterest income  1,304  1,154 13.0%  3,415  3,394 0.6%   
                
Noninterest expense:               
Salaries and benefits  2,258  1,975 14.3%  6,383  5,920 7.8%   
Net occupancy  379  398 -4.8%  1,199  1,196 0.3%   
Equipment  381  350 8.9%  1,145  1,032 10.9%   
Marketing and public relations  289  195 48.2%  788  646 22.0%   
Professional fees  90  130 -30.8%  361  400 -9.8%   
Other  646  843 -23.4%  2,227  2,257 -1.3%   
Total noninterest expense  4,043  3,891 3.9%  12,103  11,451 5.7%   
Income before income taxes  1,083  1,203 -10.0%  3,037  4,071 -25.4%   
Income taxes  182  193 -5.7%  491  767 -36.0%   
Net income  901  1,010 -10.8%  2,546  3,304 -22.9%   
Less: Net income attributable to noncontrolling interest  -  - -   -  - -    
                
Net income attibutable to Elmira Savings Bank  901  1,010 -10.8%  2,546  3,304 -22.9%   
                
Dividend on preferred stock  -  - -   -  - -    
Income available to common shareholders $901 $1,010 -10.8% $2,546 $3,304 -22.9%   
                
                
Basic earnings per share $0.26 $0.29 -10.3% $0.73 $0.95 -23.2%   
                
Diluted earnings per share $0.26 $0.29 -10.3% $0.73 $0.95 -23.2%   
                
Weighted average shares outstanding - basic  3,496,195  3,480,924 0.4%  3,493,945  3,477,690 0.5%   
                
Weighted average shares outstanding - diluted  3,498,545  3,496,810 0.0%  3,499,813  3,492,445 0.2%   
                
Dividends per share $0.23 $0.23 0.0% $0.69 $0.68 1.5%   
                


ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
               
(Dollars in Thousands)For the Three Months Ended  
 September 30, 2019  September 30, 2018  
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate  
Loans$506,556 $5,568 4.36% $458,787 $4,896 4.24% 
Short-term investments 689  4 2.15   479  2 1.61  
Securities 36,861  337 3.63   39,448  362 3.65  
Total interest-earning assets 544,106  5,909 4.31   498,714  5,260 4.19  
               
Noninterest-earning assets 75,625       67,479      
               
TOTAL ASSETS$619,731      $566,193      
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Interest-bearing deposits$441,020 $1,627 1.46  $392,762 $932 0.94  
Borrowings 29,000  210 2.85   33,000  238 2.82  
Total interest-bearing liabilities 470,020  1,837 1.55   425,762  1,170 1.09  
               
Noninterest-bearing liabilities 90,876       82,665      
Shareholders' equity 58,835       57,766      
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$619,731      $566,193      
Interest rate spread    2.76%     3.10% 
Net interest income/margin  $4,072 2.97%   $4,090 3.26% 
               


ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
               
(Dollars in Thousands)For the Nine Months Ended  
 September 30, 2019  September 30, 2018  
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate  
Loans$493,922 $16,215 4.37% $454,076 $14,478 4.24% 
Short-term investments 562  9 2.06   464  5 1.45  
Securities 39,506  1,081 3.65   40,409  1,093 3.61  
Total interest-earning assets 533,990  17,305 4.31   494,949  15,576 4.19  
               
Noninterest-earning assets 69,978       64,618      
               
TOTAL ASSETS$603,968      $559,567      
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Interest-bearing deposits$429,598 $4,407 1.37  $387,127 $2,509 0.87  
Borrowings 29,249  629 2.84   34,298  722 2.77  
Total interest-bearing liabilities 458,847  5,036 1.46   421,425  3,231 1.02  
               
Noninterest-bearing liabilities 86,449       80,683      
Shareholders' equity 58,672       57,459      
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$603,968      $559,567      
Interest rate spread    2.85%     3.17% 
Net interest income/margin  $12,269 3.05%   $12,345 3.32% 
               


     Quarter Ended
(Dollars in Thousands, Except Per Share Data) 9/30/19  6/30/19  3/31/19  12/31/18  9/30/18  
Operating Data           
 Net income$901 $718 $927 $935 $1,010  
 Net interest income 4,072  4,097  4,100  4,225  4,090  
 Provision for loan losses 250  162  132  150  150  
 Net security gains 90  -  -  -  -  
 Non-interest income, ex. Net security gains 1,214  1,126  985  1,124  1,154  
 Non-interest expense 4,043  4,206  3,854  4,038  3,891  
Performance Statistics           
 Net interest margin 2.97% 3.06% 3.13% 3.26% 3.26% 
 Annualized return on average assets 0.58% 0.47% 0.64% 0.65% 0.71% 
 Annualized return on average equity 6.07% 4.92% 6.41% 6.39% 6.94% 
 Annualized net loan charge-offs to avg loans 0.11% 0.09% 0.10% 0.17% 0.08% 
 Net charge-offs 135  105  117  199  91  
 Efficiency ratio 75.2% 80.5% 75.8% 75.5% 74.2% 
Per Share Data           
 Basic earnings per share$0.26 $0.21 $0.27 $0.27 $0.29  
 Diluted earnings per share 0.26  0.21  0.26  0.27  0.29  
 Dividend declared per share 0.23  0.23  0.23  0.23  0.23  
 Book value 16.62  16.60  16.59  16.52  16.42  
 Common stock price:           
  High 16.40  17.40  19.09  20.47  21.00  
  Low 13.97  15.69  16.32  15.77  20.10  
  Close 14.07  16.05  16.75  17.45  20.40  
 Weighted average common shares:           
  Basic 3,496  3,493  3,492  3,487  3,481  
  Fully diluted 3,499  3,499  3,501  3,499  3,497  
 End-of-period common shares:           
  Issued 3,606  3,605  3,601  3,598  3,593  
  Treasury 94  94  94  94  94  
              
              
Financial Condition Data:           
General           
 Total assets$615,601 $610,398 $596,613 $590,040 $570,785  
 Loans, net 511,750  496,149  484,780  477,900  462,713  
 Intangibles 12,320  12,320  12,320  12,320  12,320  
 Total deposits 520,030  516,327  503,089  491,517  474,449  
  Noninterest-bearing 82,613  81,249  76,414  81,690  78,324  
  Savings 69,186  71,100  71,642  75,483  71,748  
  NOW 84,207  85,130  85,808  89,666  89,835  
  Money Market 21,555  19,925  19,405  20,087  18,910  
  Time deposits 262,469  258,923  249,820  224,591  215,632  
  Total interest-bearing deposits 437,417  435,078  426,675  409,827  396,125  
 Shareholders' equity 58,422  58,357  58,231  57,949  57,512  
Asset Quality           
 Non-performing assets$4,923 $4,996 $5,081 $4,649 $4,520  
 Non-performing assets to total assets 0.80% 0.82% 0.85% 0.79% 0.79% 
 Allowance for loan losses 4,559  4,444  4,387  4,372  4,421  
 Allowance for loan losses to total loans 0.88% 0.89% 0.90% 0.91% 0.95% 
 Allowance for loan losses to           
  non-performing loans 96.43% 93.55% 89.71% 97.16% 100.00% 
 Non-performing loans to total loans 0.92% 0.96% 1.01% 0.94% 0.96% 
Capitalization           
 Shareholders' equity to total assets 9.49% 9.56% 9.76% 9.82% 10.08%