Elmira Savings Bank Reports Second Quarter Earnings

Elmira Savings Bank Reports Second Quarter Earnings

ELMIRA, N.Y., July 17, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,163,000 and $2,294,000 for the three and six months ended June 30, 2018 compared to $1,108,000 and $2,187,000 for the same periods in 2017.
  • Diluted earnings per share were $.33 per share and $.66 per share for the three and six months ended June 30, 2018 compared to $.27 per share and $.56 per share for the same periods in 2017. 
  • Return on average assets was .83% for both the three and six months ended June 30, 2018 compared to .79% and .78% for the same periods in 2017.
  • Return on average equity was 8.11% and 8.07% for the three and six months ended June 30, 2018 compared to 7.01% and 7.35% for the same periods in 2017.

“The increase in net income combined with the effect of our capital restructuring last year has improved diluted earnings per share by 18% for the first half of 2018 compared to the same period one year ago,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $2,294,000 for the six months ended June 30, 2018, an increase of $107,000 or 5% from the $2,187,000 of net income recorded for the same period in 2017. This increase was the net result of a decrease in noninterest expense of $49,000, a decrease in the provision for loan losses of $128,000, and a decrease in tax expense of $407,000, offset by a decrease in noninterest income of $373,000 and a decrease in net interest income of $104,000.

Net income totaled $1,163,000 for the three months ended June 30, 2018, an increase of $55,000 or 5% from the $1,108,000 recorded for the same period in 2017. This increase was the net result of a decrease in noninterest expense of $49,000, a decrease in the provision for loan losses of $130,000, and a decrease in tax expense of $204,000, offset by a decrease in noninterest income of $222,000 and a decrease in net interest income of $106,000.

Basic and diluted earnings per share for the six months ended June 30, 2018 were both $.66 per share compared to $.56 per share for both for the same period in 2017. Basic and diluted earnings per share for the three months ended June 30, 2018 were both $.33 per share compared to $.27 per share for both for the same period in 2017. Per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

Net Interest Margin

The net interest margin for the six months ended June 30, 2018 was 3.35% compared to 3.34% for the same period in 2017. The yield on average earning assets was 4.19% for the six months ended June 30, 2018 compared to 4.13% for the same period in 2017. The average cost of interest-bearing liabilities was .99% for the six months ended June 30, 2018 compared to .94% for the same period in 2017.

The net interest margin for the three months ended June 30, 2018 was 3.32% compared to 3.36% for the same period in 2017. The average yield on earning assets was 4.19% for the three months ended June 30, 2018 compared to 4.15% for the same period in 2017. The average cost of interest-bearing liabilities was 1.01% for the three months ended June 30, 2018 compared to .94% for the same period in 2017.

Assets

Total assets increased $8.4 million or 1.5% to $562.9 million at June 30, 2018 compared to $554.6 million at December 31, 2017. Loans, including loans held for sale, decreased 1.4% to $454.3 million at June 30, 2018 compared to December 31, 2017. The available-for-sale investment portfolio decreased $1.7 million from December 31, 2017 to June 30, 2018.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 0.98% at June 30, 2018 from .64% at December 31, 2017. Net loan charge-offs to average loans for the six months ended June 30, 2018 of 0.07% was the same as the six months ended June 30, 2017. The allowance for loan losses was 0.96% of total loans at June 30, 2018 and 0.97% of total loans at December 31, 2017.

Liabilities

Deposits total $468.3 million at June 30, 2018, an increase of $11.5 million or 2.5%. The $11.5 million increase consists of an $8.7 million increase in time deposits, a $2.9 million increase in savings accounts, a $2.8 million increase in noninterest-bearing accounts, and a $603,000 increase in interest bearing transaction accounts, offset by a $3.4 million decrease in money market accounts. Borrowed funds totaled at $33.0 million as of June 30, 2018, a decrease of $2.0 million from December 31, 2017.

Shareholders’ Equity

Shareholders’ equity increased $618,000 to $57.3 million at June 30, 2018 compared to December 31, 2017. The current level of shareholders’ equity equates to a book value per share of $16.36 at June 30, 2018, compared to $16.26 at December 31, 2017. Dividends paid for common shareholders were $0.23 and $0.45 for the three and six months ended for both June 30, 2018 and 2017. As a result of the repurchase of all outstanding preferred shares in December 2017, there were no dividends paid for preferred shares for the three or six months ended June 30, 2018 versus $225,000 and $450,000 paid in preferred dividends for the same periods in 2017.

Elmira Savings Bank, with $562.9 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 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,  
  2019   2018  % Change
ASSETS     
      
Cash and due from banks$22,633  $19,429  16.5%
Federal funds sold and other short-term investments 92   94  -2.1%
Total cash and cash equivalents 22,725   19,523  16.4%
      
Securities available for sale, at fair value 22,615   25,051  -9.7%
Securities held to maturity - fair value $7,344     
at June 30, 2019, and $7,638 at December 31, 2018 7,254   7,518  -3.5%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 9,699   9,462  2.5%
      
Loans held for sale 1,451   1,392  4.2%
      
Loans receivable 500,593   482,272  3.8%
Less: Allowance for loan losses 4,444   4,372  1.6%
Net loans 496,149   477,900  3.8%
      
Premises and equipment, net 18,723   16,846  11.1%
Bank-owned life insurance 14,720   14,444  1.9%
Accrued interest receivable 1,613   1,566  3.0%
Goodwill 12,320   12,320  0.0%
Other assets 3,129   4,018  -22.1%
Total assets$610,398  $590,040  3.5%
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
Deposits$516,327  $491,517  5.0%
Borrowings 29,000   31,000  -6.5%
Other liabilities 6,714   9,574  -29.9%
Total liabilities 552,041   532,091  3.7%
      
Shareholders' equity:     
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares     
authorized; 10,000 shares issued at June 30, 2019 and at December 31, 2018 9,700   9,700  0.0%
Common stock, $1 par value; 5,000,000 shares authorized; 3,605,336 shares     
issued at June 30, 2019 and 3,597,605 shares issued at December 31, 2018 3,605   3,598  0.2%
Additional paid-in capital 53,892   53,784  0.2%
Retained earnings 3,206   3,176  0.9%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares     
at June 30, 2019 and December 31, 2018 (12,202)  (12,202) 0.0%
Accumulated other comprehensive income (loss) 106   (158) -167.1%
Total Elmira Savings Bank shareholders' equity 58,307   57,898  0.7%
Noncontrolling interest 50   51  -2.0%
Total shareholders' equity 58,357   57,949  0.7%
Total liabilities and shareholders' equity$610,398  $590,040  3.5%


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) 2019  2018 % Change  2019  2018 % Change
            
Interest and dividend income:           
Interest and fees on loans$5,464 $4,786 14.2% $10,647 $9,582 11.1%
Interest and dividends on securities           
Taxable 252  244 3.3%  525  496 5.8%
Non-taxable 109  118 -7.6%  224  238 -5.9%
Total interest and dividend income 5,825  5,148 13.2%  11,396  10,316 10.5%
            
Interest expense:           
Interest on deposits 1,519  827 83.7%  2,780  1,577 76.3%
Interest on borrowings 209  241 -13.3%  419  484 -13.4%
Total interest expense 1,728  1,068 61.8%  3,199  2,061 55.2%
Net interest income 4,097  4,080 0.4%  8,197  8,255 -0.7%
Provision for loan losses 162  25 548.0%  294  67 338.8%
Net interest income after provision for loan losses 3,935  4,055 -3.0%  7,903  8,188 -3.5%
            
Noninterest income:           
Service fees 345  353 -2.3%  701  741 -5.4%
Gain on sale of loans held for sale 425  408 4.2%  714  786 -9.2%
Other service fees 212  208 1.9%  414  401 3.2%
Earnings on bank-owned life insurance 94  103 -8.7%  186  193 -3.6%
Other 50  58 -13.8%  96  119 -19.3%
Total noninterest income 1,126  1,130 -0.4%  2,111  2,240 -5.8%
            
Noninterest expense:           
Salaries and benefits 2,105  1,998 5.4%  4,125  3,945 4.6%
Net occupancy 375  369 1.6%  820  798 2.8%
Equipment 401  345 16.2%  764  682 12.0%
Marketing and public relations 253  230 10.0%  499  451 10.6%
Professional fees 133  93 43.0%  271  270 0.4%
Other 939  697 34.7%  1,581  1,414 11.8%
Total noninterest expense 4,206  3,732 12.7%  8,060  7,560 6.6%
Income before income taxes 855  1,453 -41.2%  1,954  2,868 -31.9%
Income taxes 137  290 -52.8%  309  574 -46.2%
Net income 718  1,163 -38.3%  1,645  2,294 -28.3%
Less: Net income attributable to noncontrolling interest -  - -   -  - - 
            
Net income attributable to Elmira Savings Bank 718  1,163 -38.3%  1,645  2,294 -28.3%
            
Dividend on preferred stock -  - -   -  - - 
Income available to common shareholders$718 $1,163 -38.3% $1,645 $2,294 -28.3%
            
            
Basic earnings per share$0.21 $0.33 -36.4% $0.47 $0.66 -28.8%
            
Diluted earnings per share$0.21 $0.33 -36.4% $0.47 $0.66 -28.8%
            
Weighted average shares outstanding - basic 3,493,298  3,477,210 0.5%  3,492,571  3,476,037 0.5%
            
Weighted average shares outstanding - diluted 3,499,335  3,491,182 0.2%  3,500,198  3,490,227 0.3%
            
Dividends per share$0.23 $0.23 0.0% $0.46 $0.45 2.2%
            
 Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018. 

 

ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES 
              
(Dollars in Thousands)For the Three Months Ended 
 June 30, 2019  June 30, 2018 
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate 
              
Loans$492,985 $5,464 4.42%$450,018 $4,786 4.25%
Short-term investments 513  3 2.11   479  2 1.39 
Securities 39,985  358 3.59   40,283  360 3.59 
Total interest-earning assets 533,483  5,825 4.36   490,780  5,148 4.19 
              
Noninterest-earning assets 72,842       68,385     
              
TOTAL ASSETS$606,325      $559,165     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$431,816 $1,519 1.41  $386,677 $827 0.86 
Borrowings 29,000  209 2.85   34,407  241 2.77 
Total interest-bearing liabilities 460,816  1,728 1.50   421,084  1,068 1.01 
              
Noninterest-bearing liabilities 86,960       80,595     
Shareholders' equity 58,549       57,486     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$606,325      $559,165     
Interest rate spread    2.86%     3.18%
Net interest income/margin  $4,097 3.06%   $4,080 3.32%


ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES 
              
(Dollars in Thousands)For the Six Months Ended 
 June 30, 2019  June 30, 2018 
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate 
              
Loans$487,500 $10,647 4.37%$451,681 $9,582 4.25%
Short-term investments 496  5 2.00   456  3 1.36 
Securities 40,851  744 3.66   40,898  731 3.59 
Total interest-earning assets 528,847  11,396 4.31   493,035  10,316 4.19 
              
Noninterest-earning assets 67,108       63,164     
              
TOTAL ASSETS$595,955      $556,199     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$423,792 $2,780 1.32  $384,263 $1,577 0.83 
Borrowings 29,376  419 2.83   34,958  484 2.75 
Total interest-bearing liabilities 453,168  3,199 1.42   419,221  2,061 0.99 
              
Noninterest-bearing liabilities 84,198       79,675     
Shareholders' equity 58,589       57,303     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$595,955      $556,199     
Interest rate spread    2.89%     3.20%
Net interest income/margin  $8,197 3.10%   $8,255 3.35%


   Quarter Ended
(Dollars in Thousands, Except Per Share Data)6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
Operating Data          
Net income$718 $927 $935 $1,010 $1,163 
Net interest income 4,097  4,100  4,225  4,090  4,080 
Provision for loan losses 162  132  150  150  25 
Net security gains -  -  -  -  - 
Non-interest income, ex. Net security gains 1,126  985  1,124  1,154  1,130 
Non-interest expense 4,206  3,854  4,038  3,891  3,732 
Performance Statistics          
Net interest margin 3.06% 3.13% 3.26% 3.26% 3.32%
Annualized return on average assets 0.47% 0.64% 0.65% 0.71% 0.83%
Annualized return on average equity 4.92% 6.41% 6.39% 6.94% 8.11%
Annualized net loan charge-offs to avg loans0.09% 0.10% 0.17% 0.08% 0.09%
Net charge-offs 105  117  199  91  96 
Efficiency ratio 80.5% 75.8% 75.5% 74.2% 71.6%
Per Share Data          
Basic earnings per share$0.21 $0.27 $0.27 $0.29 $0.33 
Diluted earnings per share 0.21  0.26  0.27  0.29  0.33 
Dividend declared per share 0.23  0.23  0.23  0.23  0.23 
Book value 16.60  16.59  16.52  16.42  16.36 
Common stock price:          
High 17.40  19.09  20.47  21.00  20.60 
Low 15.69  16.32  15.77  20.10  19.29 
Close 16.05  16.75  17.45  20.40  20.43 
Weighted average common shares:          
Basic 3,493  3,492  3,487  3,481  3,477 
Fully diluted 3,499  3,501  3,499  3,497  3,491 
End-of-period common shares:          
Issued 3,605  3,601  3,598  3,593  3,593 
Treasury 94  94  94  94  94 
           
           
Financial Condition Data:          
General          
Total assets$610,398 $596,613 $590,040 $570,785 $562,924 
Loans, net 496,149  484,780  477,900  462,713  448,690 
Intangibles 12,320  12,320  12,320  12,320  12,320 
Total deposits 516,327  503,089  491,517  474,449  468,293 
Noninterest-bearing 81,249  76,414  81,690  78,324  76,880 
Savings 71,100  71,642  75,483  71,748  73,200 
NOW 85,130  85,808  89,666  89,835  87,402 
Money Market 19,925  19,405  20,087  18,910  21,934 
Time deposits 258,923  249,820  224,591  215,632  208,877 
Total interest-bearing deposits 435,078  426,675  409,827  396,125  391,413 
Shareholders' equity 58,357  58,231  57,949  57,512  57,299 
Asset Quality          
Non-performing assets$4,996 $5,081 $4,649 $4,520 $4,560 
Non-performing assets to total assets 0.82% 0.85% 0.79% 0.79% 0.81%
Allowance for loan losses 4,444  4,387  4,372  4,421  4,362 
Allowance for loan losses to total loans 0.89% 0.90% 0.91% 0.95% 0.96%
Allowance for loan losses to          
non-performing loans 93.55% 89.71% 97.16% 100.00% 99.18%
Non-performing loans to total loans 0.96% 1.01% 0.94% 0.96% 0.98%
Capitalization          
Shareholders' equity to total assets 9.56% 9.76% 9.82% 10.08% 10.18%
           

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