Elmira Savings Bank Reports First Quarter Earnings

Elmira, New York, UNITED STATES


ELMIRA, N.Y., April 25, 2017 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,079,000 for the three months ended March 31, 2017 compared to $1,036,000 for the same period in 2016.
  • Diluted earnings per share were $.31 per share for the three months ended March 31, 2017 compared to $.30 per share for the same period in 2016. 
  • Return on average assets was .78% for the three months ended March 31, 2017 and .74% for the same period in 2016.
  • Return on average equity was 7.74% for the three months ended March 31, 2017 compared to 7.52% for the same period in 2016.

“We are pleased with our year-over-year improvement in earnings, increasing our return on equity ratio and earnings per share,” said Thomas M. Carr, President and CEO.  Carr continued, “This earnings improvement was highlighted by an increase in our net interest margin which has risen by 13 basis points year-to-year to 3.32% for the first quarter of 2017.”

Net Income

Net income totaled $1,079,000 for the three months ended March 31, 2017, an increase of $43,000 or 4.2% from the $1,036,000 recorded for the same period in 2016.  This increase was the net result of an increase in net interest income of $73,000, a decrease in noninterest expense of $19,000, and a decrease in the provision for loan losses of $100,000, offset by a decrease in noninterest income of $90,000 and an increase in tax expense of $59,000.

Basic and diluted earnings per share for the three months ended March 31, 2017 were both $.31 per share compared to $.30 per share for both for the same period in 2016.

Net Interest Margin

The net interest margin for the three months ended March 31, 2017 was 3.32% compared to 3.19% for the first quarter of 2016.  The yield on average earning assets was 4.11% for the three months ended March 31, 2017 compared to 4.07% for the same period in 2016.  The average cost of interest-bearing liabilities was .93% for the three months ended March 31, 2017 compared to 1.04% for the three months ended March 31, 2016.

Assets

Total assets decreased $16.8 million or 2.9% to $556.6 million at March 31, 2017 compared to $573.5 million at December 31, 2016.  Loans receivable decreased 1.2% to $450.5 million at March 31, 2017 compared to December 31, 2016.  The available-for-sale investment portfolio decreased $2.1 million from December 31, 2016 to March 31, 2017, and cash and cash equivalents decreased by $7.7 million from December 31, 2016 to March 31, 2017.

Nonperforming Loans

Our nonperforming loans to total loans ratio was .91% at March 31, 2017 and 1.10% at December 31, 2016.  Net loan charge-offs to average loans for the three months ended March 31, 2017 of .01% decreased from .07% for the three months ended March 31, 2016.  The allowance for loan losses was .95% of total loans at March 31, 2017 and .94% at December 31, 2016.

Liabilities

Deposits totaled $450.4 million at March 31, 2017, a decrease of $19.2 million or 4.1% from the December 31, 2016 total of $469.5 million.  Borrowed funds remained unchanged from December 31, 2016 at $42.0 million.

Shareholders’ Equity

Shareholders’ equity increased $380,000 to $56.1 million at March 31, 2017 compared to December 31, 2016. The current level of shareholders’ equity equates to a book value per share of $16.82 at March 31, 2017, compared to $16.74 at December 31, 2016.  Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2017 and 2016.

Elmira Savings Bank, with $556.6 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 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) March 31, December 31,   
     2017   2016  % Change 
ASSETS         
          
Cash and due from banks  $  16,462  $  24,195  -32.0% 
Federal funds sold and other short-term investments    98     99  -1.0% 
  Total cash and cash equivalents     16,560     24,294  -31.8% 
          
Securities available for sale, at fair value    30,468     32,581  -6.5% 
Securities held to maturity - fair value $8,515       
  at March 31, 2017 and $8,679 at December 31, 2016    8,374     8,519  -1.7% 
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost   9,689     9,811  -1.2% 
          
Loans held for sale     1,186     3,597  -67.0% 
          
Loans receivable      450,510     455,931  -1.2% 
Less: Allowance for loan losses     4,287     4,263  0.6% 
  Net loans      446,223     451,668  -1.2% 
          
Premises and equipment, net     14,349     12,634  13.6% 
Bank-owned life insurance     13,688     13,592  0.7% 
Accrued interest receivable     1,057     1,552  -31.9% 
Intangible assets, net     14     20  -30.0% 
Goodwill      12,320     12,320  0.0% 
Other assets      2,716     2,862  -5.1% 
  Total assets   $  556,644  $  573,450  -2.9% 
          
LIABILITIES AND SHAREHOLDERS' EQUITY       
          
Deposits   $  450,376  $  469,547  -4.1% 
Borrowings      42,000     42,000  0.0% 
Other liabilities      8,165     6,180  32.1% 
  Total liabilities      500,541     517,727  -3.3% 
          
Shareholders' equity:        
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares      
  authorized; 10,000 shares issued at March 31, 2017 and at December 31, 2016   9,700     9,700  0.0% 
Common stock, $1 par value; authorized 5,000,000 shares; 2,849,813 shares       
  issued at March 31, 2017 and 2,844,670 shares issued at December 31, 2016   2,850     2,845  0.2% 
Additional paid-in capital     41,677     41,644  0.1% 
Retained earnings     4,627     4,407  5.0% 
Treasury stock, at cost - 93,883 shares at March 31, 2017      
  and 98,118 shares at December 31, 2016    (2,802)    (2,907) -3.6% 
Accumulated other comprehensive loss    (1)    (19) -94.7% 
  Total Elmira Savings Bank shareholders' equity    56,051     55,670  0.7% 
Noncontrolling interest     52     53  -1.9% 
  Total shareholders' equity     56,103     55,723  0.7% 
  Total liabilities and shareholders' equity  $  556,644  $  573,450  -2.9% 
          

 

ELMIRA SAVINGS BANK 
CONSOLIDATED STATEMENT OF INCOME  
(unaudited) 
       
  Three Months Ended
   
  March 31,
   
(in thousands, except for per share data)  2017  2016 % Change 
          
Interest and dividend income:          
  Interest and fees on loans $  4,735 $  4,729 0.1% 
  Interest and dividends on securities         
  Taxable    244    285 -14.4% 
  Non-taxable    189    219 -13.7% 
  Total interest and dividend income    5,168    5,233 -1.2% 
          
Interest expense:         
  Interest on deposits    730    734 -0.5% 
  Interest on borrowings    265    399 -33.6% 
  Total interest expense    995    1,133 -12.2% 
Net interest income    4,173    4,100 1.8% 
Provision for loan losses    40    140 -71.4% 
Net interest income after provision for loan losses    4,133    3,960 4.4% 
          
Noninterest income:         
  Service fees    379    348 8.9% 
  Gain on sale of loans held for sale    583    522 11.7% 
  Gain on sale of securities    -    180 -100.0% 
  Other service fees    176    180 -2.2% 
  Earnings on bank-owned life insurance     96    97 -1.0% 
  Other    27    24 12.5% 
  Total noninterest income    1,261    1,351 -6.7% 
          
Noninterest expense:         
  Salaries and benefits    1,959    1,927 1.7% 
  Net occupancy    412    369 11.7% 
  Equipment    312    275 13.5% 
  Marketing and public relations    200    201 -0.5% 
  Professional fees    168    180 -6.7% 
  Other    777    895 -13.2% 
  Total noninterest expense    3,828    3,847 -0.5% 
Income before income taxes    1,566    1,464 7.0% 
Income taxes    487    428 13.8% 
Net income    1,079    1,036 4.2% 
Less: Net income attributable to noncontrolling interest    -    -   -  
       
Net income attributable to Elmira Savings Bank  1,079  1,036 4.2% 
       
Dividend on preferred stock    225    225 0.0% 
Income available to common shareholders $  854 $  811 5.3% 
       
          
Basic earnings per share $  0.31 $  0.30 3.3% 
       
Diluted earnings per share $  0.31 $  0.30 3.3% 
       
Weighted average shares outstanding - basic    2,739,157    2,715,915 0.9% 
       
Weighted average shares outstanding - diluted    2,757,422    2,733,014 0.9% 
       
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, 2017  March 31, 2016   
ASSETS: Average Balance Interest Average Rate  Average Balance Interest Average Rate   
Loans receivable $  453,195 $  4,735   4.20% $  453,828 $  4,729   4.17% 
Federal funds sold and other short-term investments    1,887    2   0.45     381    -    0.16   
Securities    49,696    431   3.48     59,630    504   3.38   
Total interest-earning assets    504,778    5,168   4.11     513,839    5,233   4.07   
                 
Noninterest-earning assets    59,626         48,009       
                 
TOTAL ASSETS $  564,404      $  561,848       
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Interest-bearing deposits $  388,286 $  730   0.76  $  374,605 $  734   0.79   
Borrowings    42,205    265   2.51     58,997    399   2.68   
Total interest-bearing liabilities    430,491    995   0.93     433,602    1,133   1.04   
                 
Noninterest-bearing liabilities    77,351         72,848       
Shareholders' equity    56,562         55,398       
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $  564,404      $  561,848       
Interest rate spread       3.18%       3.03%  
Net interest income/margin   $  4,173   3.32%   $  4,100   3.19%  
                 

 

     Quarter Ended
(Dollars in Thousands, Except Per Share Data)  3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016 
Operating Data            
 Net income $  1,079 $  1,042 $  1,202 $  1,057 $  1,036  
 Net interest income    4,173    4,155    4,211    4,054    4,100  
 Provision for loan losses    40    175    87    85    140  
 Net security gains  -  -  -  -    180  
 Non-interest income, ex. Net security gains    1,261    1,395    1,716    1,438    1,171  
 Non-interest expense    3,828    3,888    3,976    3,891    3,847  
Performance Statistics            
 Net interest margin  3.32% 3.23% 3.24% 3.17% 3.19% 
 Annualized return on average assets  0.78% 0.73% 0.84% 0.75% 0.74% 
 Annualized return on average equity  7.74% 7.38% 8.54% 7.65% 7.52% 
 Annualized net loan charge-offs to avg loans  0.01% 0.20% 0.05% 0.01% 0.07% 
 Net charge-offs    16    231    53    14    74  
 Efficiency ratio  70.4% 70.1% 67.1% 70.8% 70.6% 
Per Share Data            
 Basic earnings per share $  0.31 $  0.30 $  0.36 $  0.31 $  0.30  
 Diluted earnings per share    0.31    0.30    0.36    0.30    0.30  
 Dividend declared per share    0.23    0.23    0.23    0.23    0.23  
 Book value    16.82    16.74    16.80    16.69    16.59  
 Common stock price:            
  High     21.75    22.25    21.50    20.10    20.55  
  Low    20.28    18.50    18.85    18.06    16.83  
  Close    21.60    20.45    19.91    19.66    18.01  
 Weighted average common shares:            
  Basic     2,739    2,731    2,724    2,718    2,716  
  Fully diluted    2,757    2,750    2,741    2,735    2,733  
 End-of-period common shares:            
  Issued    2,850    2,845    2,839    2,832    2,828  
  Treasury    94    98    98    98    98  
               
               
Financial Condition Data:            
General            
 Total assets $  556,644 $  573,450 $  567,450 $  574,721 $  560,020  
 Loans, net    446,223    451,668    455,251    463,104    452,718  
 Intangibles    12,334    12,340    12,349    12,360    12,371  
 Total deposits    450,376    469,547    463,414    470,462    443,552  
  Noninterest-bearing    71,870    70,330    72,102    70,803    65,165  
  Savings    70,300    70,621    69,019    69,159    67,295  
  NOW    86,633    85,822    86,787    121,875    105,094  
  Money Market    27,697    28,889    25,715    25,172    25,281  
  Time deposits    193,876    213,885    209,791    183,453    180,717  
  Total interest-bearing deposits    378,506    399,217    391,312    399,659    378,387  
 Shareholders' equity    56,103    55,723    55,792    55,382    55,039  
Asset Quality            
 Non-performing assets $  4,234 $  5,289 $  5,345 $  5,622 $  5,328  
 Non-performing assets to total assets  0.76% 0.92% 0.94% 0.98% 0.95% 
 Allowance for loan losses    4,287    4,263    4,319    4,285    4,214  
 Allowance for loan losses to total loans  0.95% 0.94% 0.94% 0.92% 0.92% 
 Allowance for loan losses to             
  non-performing loans  105.93% 84.80% 85.00% 80.41% 83.69% 
 Non-performing loans to total loans  0.91% 1.11% 1.12% 1.15% 1.10% 
Capitalization            
 Shareholders' equity to total assets  10.08% 9.72% 9.83% 9.64% 9.83% 



        

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