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 | % | |||||||||