ELMIRA, N.Y., July 19, 2017 (GLOBE NEWSWIRE) --

Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,108,000 and $2,187,000 for the three and six months ended June 30, 2017 compared to $1,057,000 and $2,093,000 for the same periods in 2016.

  • Diluted earnings per share were $.28 per share and $.59 per share for the three and six months ended June 30, 2017 compared to $.30 per share and $.60 per share for the same periods in 2016. 

  • Return on average assets was .79% and .78% for the three and six months ended June 30, 2017 compared to .73% for both of the same periods in 2016.

  • Return on average equity was 7.01% and 7.35% for the three and six months ended June 30, 2017 compared to 7.65% and 7.58% for the same periods in 2016.

“We are pleased with the year-over-year improvement in earnings, highlighted by an increase in our net interest margin which has risen by 16 basis points year-to-year to 3.34% for the first half of 2017,” said Thomas M. Carr, President and CEO.  Carr continued, “In addition to the second quarter earnings improvement, we are also pleased to have successfully completed the capital raise and recently opened our new branch office in Ithaca.”

Net Income

Net income totaled $2,187,000 for the six months ended June 30, 2017, an increase of $94,000 or 5% from the $2,093,000 of net income recorded for the same period in 2016.  This increase was the net result of an increase in net interest income of $205,000, a decrease in noninterest expense of $129,000, and a decrease in the provision for loan losses of $30,000, offset by a decrease in noninterest income of $176,000 and an increase in tax expense of $94,000.

Net income totaled $1,108,000 for the three months ended June 30, 2017, an increase of $51,000 or 5% from the $1,057,000 recorded for the same period in 2016.  This increase was the net result of an increase in net interest income of $132,000 and a decrease in noninterest expense of $110,000, offset by a decrease in noninterest income of $86,000, an increase in the provision for loan losses of $70,000, and an increase in tax expense of $35,000.

Basic and diluted earnings per share for the six months ended June 30, 2017 were both $.59 per share compared to $.60 per share for both for the same period in 2016.  Basic and diluted earnings per share for the three months ended June 30, 2017 were both $.28 per share compared to $.31 per share and $.30 per share for the same period in 2016.

The decrease in earnings per share and return on average equity for both the three and six months ending June 30, 2017 versus the same periods in 2016, despite the higher levels of net income for 2017, reflects the impact of the private placement of 548,430 common shares in April 2017.  

Net Interest Margin

The net interest margin for the six months ended June 30, 2017 was 3.34% compared to 3.18% for the same period in 2016.  The yield on average earning assets was 4.13% for the six months ended June 30, 2017 compared to 4.07% for the same period in 2016.  The average cost of interest-bearing liabilities was .94% for the six months ended June 30, 2017 compared to 1.04% for the same period in 2016.

The net interest margin for the three months ended June 30, 2017 was 3.36% compared to 3.17% for the same period in 2016.  The average yield on earning assets was 4.15% for the three months ended June 30, 2017 compared to 4.06% for the same period in 2016.  The average cost of interest-bearing liabilities was .94% for the three months ended June 30, 2017 compared to 1.04% for the same period in 2016.

Assets

Total assets increased $882,000 or 0.2% to $574.3 million at June 30, 2017 compared to $573.5 million at December 31, 2016.  Loans, including loans held for sale, decreased 0.7% to $456.5 million at June 30, 2017 compared to December 31, 2016.  The available-for-sale investment portfolio decreased $5.2 million from December 31, 2016 to June 30, 2017.

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to 0.74% at June 30, 2017 from 1.11% at December 31, 2016.  Net loan charge-offs to average loans for the six months ended June 30, 2017 of 0.07% increased from 0.04% for the six months ended June 30, 2016.  The allowance for loan losses was 0.95% of total loans at June 30, 2017 and 0.94% of total loans at December 31, 2016.

Liabilities

Deposits total $460.1 million at June 30, 2017, a decrease of $9.4 million or 2.0%.  The $9.4 million decrease consists of a $13.2 million decrease in time deposits and a $4.0 million decrease in money market accounts, offset by an increase in interest bearing transaction accounts of $1.1 million, a $47,000 increase in savings accounts, and a $6.7 million increase in noninterest-bearing accounts.  Borrowed funds remained unchanged from December 31, 2016 at $42.0 million.

Shareholders’ Equity

Shareholders’ equity increased $9.6 million to $65.2 million at June 30, 2017 compared to December 31, 2016.  The increase in shareholders’ equity includes the impact of the gross $9.5 million received from the private placement of 548,430 common shares in April 2017.  The current level of shareholders’ equity equates to a book value per share of $16.77 at June 30, 2017, compared to $16.74 at December 31, 2015.  Dividends declared and paid for common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2017 and 2016.

Elmira Savings Bank, with $574.3 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,   
     2017   2016  % Change 
ASSETS         
          
Cash and due from banks  $  31,542  $  24,195  30.4% 
Federal funds sold and other short-term investments    98     99  -1.0% 
  Total cash and cash equivalents     31,640     24,294  30.2% 
          
Securities available for sale, at fair value    27,383     32,581  -16.0% 
Securities held to maturity - fair value $8,389       
  at June 30, 2017 and $8,679 at December 31, 2016    8,245     8,519  -3.2% 
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost   9,954     9,811  1.5% 
          
Loans held for sale     4,172     3,597  16.0% 
          
Loans receivable      452,322     455,931  -0.8% 
Less: Allowance for loan losses     4,298     4,263  0.8% 
  Net loans      448,024     451,668  -0.8% 
          
Premises and equipment, net     15,248     12,634  20.7% 
Bank-owned life insurance     13,783     13,592  1.4% 
Accrued interest receivable     990     1,552  -36.2% 
Intangible assets, net     9     20  -55.0% 
Goodwill      12,320     12,320  0.0% 
Other assets      2,564     2,862  -10.4% 
  Total assets   $  574,332  $  573,450  0.2% 
          
LIABILITIES AND SHAREHOLDERS' EQUITY       
          
Deposits   $  460,140  $  469,547  -2.0% 
Borrowings      42,000     42,000  0.0% 
Other liabilities      6,912     6,180  11.8% 
  Total liabilities      509,052     517,727  -1.7% 
          
Shareholders' equity:        
Preferred stock, $1 par value; $1,000 liquidation value per issued share; 5,000,000 shares      
  authorized; 10,000 shares issued at June 30, 2017 and at December 31, 2016   9,700     9,700  0.0% 
Common stock, $1 par value; authorized 5,000,000 shares; 3,404,925 shares       
  issued at June 30, 2017 and 2,844,670 shares issued at December 31, 2016   3,405     2,845  19.7% 
Additional paid-in capital     50,080     41,644  20.3% 
Retained earnings     4,749     4,407  7.8% 
Treasury stock, at cost - 93,883 shares at June 30, 2017      
  and 98,118 shares at December 31, 2016    (2,802)    (2,907) -3.6% 
Accumulated other comprehensive income    96     (19) -605.3% 
  Total Elmira Savings Bank shareholders' equity    65,228     55,670  17.2% 
Noncontrolling interest     52     53  -1.9% 
  Total shareholders' equity     65,280     55,723  17.2% 
  Total liabilities and shareholders' equity $  574,332  $  573,450  0.2% 
          

 

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)  2017  2016 % Change  2017  2016 % Change
             
Interest and dividend income:             
  Interest and fees on loans $  4,789 $  4,744 0.9% $  9,524 $  9,473 0.5%
  Interest and dividends on securities            
  Taxable    228    242 -5.8%    472    527 -10.4%
  Non-taxable    156    205 -23.9%    345    424 -18.6%
  Total interest and dividend income    5,173    5,191 -0.3%    10,341    10,424 -0.8%
             
Interest expense:            
  Interest on deposits    720    763 -5.6%    1,450    1,497 -3.1%
  Interest on borrowings    267    374 -28.6%    532    773 -31.2%
  Total interest expense    987    1,137 -13.2%    1,982    2,270 -12.7%
Net interest income    4,186    4,054 3.3%    8,359    8,154 2.5%
Provision for loan losses    155    85 82.4%    195    225 -13.3%
Net interest income after provision for loan losses    4,031    3,969 1.6%    8,164    7,929 3.0%
             
Noninterest income:            
  Service fees    361    354 2.0%    740    702 5.4%
  Gain on sale of loans held for sale    686    749 -8.4%    1,269    1,271 -0.2%
  Gain on sale of securities    -    -      -    180 -100.0%
  Other service fees    186    186 0.0%    362    366 -1.1%
  Earnings on bank-owned life insurance     95    108 -12.0%    191    205 -6.8%
  Other    24    41 -41.5%    51    65 -21.5%
  Total noninterest income    1,352    1,438 -6.0%    2,613    2,789 -6.3%
             
Noninterest expense:            
  Salaries and benefits    1,902    1,969 -3.4%    3,861    3,896 -0.9%
  Net occupancy    360    353 2.0%    772    722 6.9%
  Equipment    306    301 1.7%    618    576 7.3%
  Marketing and public relations    207    192 7.8%    407    393 3.6%
  Professional fees    184    194 -5.2%    352    374 -5.9%
  Other    822    882 -6.8%    1,599    1,777 -10.0%
  Total noninterest expense    3,781    3,891 -2.8%    7,609    7,738 -1.7%
Income before income taxes    1,602    1,516 5.7%    3,168    2,980 6.3%
Income taxes    494    459 7.6%    981    887 10.6%
Net income    1,108    1,057 4.8%    2,187    2,093 4.5%
Less: Net income attributable to noncontrolling interest    -    -   -     -    -   - 
             
Net income attibutable to Elmira Savings Bank    1,108    1,057 4.8%  2,187  2,093 4.5%
             
Dividend on preferred stock    225    225 0.0%    450    450 0.0%
Income available to common shareholders $  883 $  832 6.1% $  1,737 $  1,643 5.7%
             
             
Basic earnings per share $  0.28 $  0.31 -9.7% $  0.59 $  0.60 -1.7%
             
Diluted earnings per share $  0.28 $  0.30 -6.7% $  0.59 $  0.60 -1.7%
             
Weighted average shares outstanding - basic    3,154,094    2,717,506 16.1%    2,947,828    2,716,710 8.5%
             
Weighted average shares outstanding - diluted    3,170,013    2,734,970 15.9%    2,964,920    2,733,992 8.4%
             
Dividends per share $  0.24 $  0.23 4.3% $  0.47 $  0.46 2.2%
             

 

ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
               
(Dollars in Thousands)For the Three Months Ended  
 June 30, 2017  June 30, 2016  
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate  
Loans$  450,724 $  4,789   4.24%$  457,695 $  4,744   4.15%
Short-term investments   459    1   0.81     691    -    0.20  
Securities   47,115    383   3.25     53,202    447   3.36  
Total interest-earning assets   498,298    5,173   4.15     511,588    5,191   4.06  
               
Noninterest-earning assets   65,224         53,756      
               
TOTAL ASSETS$  563,522      $  565,344      
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Interest-bearing deposits$  378,473 $  720   0.76  $  384,003 $  763   0.80  
Borrowings   42,000    267   2.52     52,055    374   2.84  
Total interest-bearing liabilities   420,473    987   0.94     436,058    1,137   1.04  
               
Noninterest-bearing liabilities   79,670         73,662      
Shareholders' equity   63,379         55,624      
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$  563,522      $  565,344      
Interest rate spread      3.21%       3.02% 
Net interest income/margin  $  4,186   3.36%   $  4,054   3.17% 
               

 

ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES 
              
(Dollars in Thousands)For the Six Months Ended 
 June 30, 2017  June 30, 2016 
ASSETS:Average Balance Interest Average Rate  Average Balance Interest Average Rate 
Loans$  451,952 $  9,524   4.22%$  455,762 $  9,473   4.16%
Short-term investments   1,153    3   0.53     536    -    0.19 
Securities   48,399    814   3.37     56,416    951   3.37 
Total interest-earning assets   501,504    10,341   4.13     512,714    10,424   4.07 
              
Noninterest-earning assets   62,457         50,882     
              
TOTAL ASSETS$  563,961      $  563,596     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$  383,352 $  1,450   0.76  $  379,304 $  1,497   0.79 
Borrowings   42,102    532   2.51     55,526    773   2.76 
Total interest-bearing liabilities   425,454    1,982   0.94     434,830    2,270   1.04 
              
Noninterest-bearing liabilities   78,517         73,255     
Shareholders' equity   59,990         55,511     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$  563,961      $  563,596     
Interest rate spread      3.19%       3.03%
Net interest income/margin  $  8,359   3.34%   $  8,154   3.18%
              

 

   Quarter Ended
(Dollars in Thousands, Except Per Share Data) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 
            
Operating Data           
            
 Net income$  1,108 $  1,079 $  1,042 $  1,202 $  1,057  
 Net interest income   4,186    4,173    4,155    4,211    4,054  
 Provision for loan losses   155    40    175    87    85  
 Net security gains   -     -     -     -     -   
 Non-interest income, ex. Net security gains   1,352    1,261    1,395    1,716    1,438  
 Non-interest expense   3,781    3,828    3,888    3,976    3,891  
            
Performance Statistics           
            
 Net interest margin 3.36% 3.32% 3.23% 3.24% 3.17% 
 Annualized return on average assets 0.79% 0.78% 0.73% 0.84% 0.75% 
 Annualized return on average equity 7.01% 7.74% 7.38% 8.54% 7.65% 
 Annualized net loan charge-offs to avg loans 0.13% 0.01% 0.20% 0.05% 0.01% 
 Net charge-offs (recoveries)   144    16    231    53    14  
 Efficiency ratio 68.3% 70.4% 70.1% 67.1% 70.8% 
            
Per Share Data           
            
 Basic earnings per share$  0.28 $  0.31 $  0.30 $  0.36 $  0.31  
 Diluted earnings per share   0.28    0.31    0.30    0.36    0.30  
 Dividend declared per share   0.23    0.23    0.23    0.23    0.23  
 Book value   16.77    16.82    16.74    16.80    16.69  
 Common stock price:           
  High    21.75    21.75    22.25    21.50    20.10  
  Low   19.65    20.28    18.50    18.85    18.06  
  Close   20.30    21.60    20.45    19.91    19.66  
 Weighted average common shares:           
  Basic    3,154    2,739    2,731    2,724    2,718  
  Fully diluted   3,170    2,757    2,750    2,741    2,735  
 End-of-period common shares:           
  Issued   3,405    2,850    2,845    2,839    2,832  
  Treasury   94    94    98    98    98  
              
              
Financial Condition Data:           
General           
 Total assets$  574,332 $  556,644 $  573,450 $  567,450 $  574,721  
 Loans, net   448,024    446,223    451,668    455,251    463,104  
 Intangibles   12,329    12,334    12,340    12,349    12,360  
 Total deposits   460,140    450,376    469,547    463,414    470,462  
                   
  Noninterest-bearing   77,027    71,870    70,330    72,102    70,803  
                   
  Savings   70,668    70,300    70,621    69,019    69,159  
  NOW   86,896    86,633    85,822    86,787    121,875  
  Money Market   24,859    27,697    28,889    25,715    25,172  
  Time deposits   200,690    193,876    213,885    209,791    183,453  
  Total interest-bearing deposits   383,113    378,506    399,217    391,312    399,659  
                  
 Shareholders' equity   65,280    56,103    55,723    55,792    55,382  
                  
Asset Quality           
                  
 Non-performing assets$  3,494 $  4,234 $  5,289 $  5,345 $  5,622  
 Non-performing assets to total assets 0.61% 0.76% 0.92% 0.94% 0.98% 
 Allowance for loan losses   4,298    4,287    4,263    4,319    4,285  
 Allowance for loan losses to total loans 0.95% 0.95% 0.94% 0.94% 0.92% 
 Allowance for loan losses to            
  non-performing loans 129.15% 105.93% 84.80% 85.00% 80.41% 
 Non-performing loans to total loans 0.74% 0.91% 1.11% 1.12% 1.15% 
                  
Capitalization           
                  
 Shareholders' equity to total assets 11.37% 10.08% 9.72% 9.83% 9.64% 
              

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