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Elmira Savings Bank Reports Second Quarter Earnings


/EINPresswire.com/ -- ELMIRA, NY -- (Marketwired) -- 07/20/16 -- 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
                                         --------------------------  --------------------------
                                          Average           Average   Average           Average
                    ASSETS:               Balance  Interest   Rate    Balance  Interest   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
                                         --------------------------  --------------------------
                                          Average           Average   Average           Average
                    ASSETS:               Balance  Interest   Rate    Balance  Interest   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%
                    

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


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