Elmira Savings Bank Reports Increase in Quarterly Earnings
/EINPresswire.com/ -- ELMIRA, NY -- (Marketwired) -- 10/21/15 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,057,000 and $3,086,000 for the three and nine months ended September 30, 2015 compared to $475,000 and $2,634,000 for the same periods in 2014.
- Diluted earnings per share were $.30 per share and $.87 per share for the three and nine months ended September 30, 2015 compared to $.09 per share and $.70 per share for the same periods in 2014.
- Return on average assets was .73% for both the three and nine months ended September 30, 2015 compared to .36% and .68% for the same periods in 2014.
- Return on average equity was 7.60% and 7.43% for the three and nine months ended September 30, 2015 compared to 3.36% and 6.35% for the same periods in 2014.
"We are pleased with the increase in core earnings supported by loan and deposit growth," said Thomas M. Carr, President and CEO. "During the quarter we experienced strong mortgage originations and are pleased with our reception in the Watkins Glen market," continued Mr. Carr.
Net Income
Net income totaled $3,086,000 for the nine months ended September 30, 2015, an increase of $452,000 or 17% from the $2,634,000 of net income recorded for the same period in 2014. This increase was the net result of an increase in noninterest income of $291,000, an increase in net interest income of $112,000, and a decrease in noninterest expense of $281,000, offset by an increase in the provision for loan losses of $93,000 and an increase in tax expense of $139,000.
Net income totaled $1,057,000 for the three months ended September 30, 2015, an increase of $582,000 or 123% from the $475,000 recorded for the same period in 2014. This increase was the net result of a decrease in noninterest expense of $465,000, an increase in noninterest income of $384,000, and an increase in net interest income of $50,000, offset by an increase in tax expense of $285,000 and an increase in the provision for loan losses of $32,000.
The decrease in noninterest expense for both the three and nine months ended September 30, 2015 versus the same periods in 2014 includes the impact of $820,000 of one-time expense recognized in the third quarter of 2014. This one-time expense was for the estimated value of an executive retirement compensation agreement.
Net income of $1,057,000 for the current quarter ended September 30, 2015 increased $38,000 or 4% from net income for the preceding quarter ended June 30, 2015.
Basic and diluted earnings per share for the nine months ended September 30, 2015 were $.89 per share and $.87 per share compared to $.73 per share and $.70 per share for the same period in 2014. Basic and diluted earnings per share for the three months ended September 30, 2015 were $.31 per share and $.30 per share compared to $.09 per share for both basic and diluted earnings per share for the same period in 2014.
Net Interest Margin
The net interest margin for the nine months ended September 30, 2015 was 3.03% compared to 3.23% for the same period in 2014. The yield on average earning assets was 4.05% for the nine months ended September 30, 2015 compared to 4.25% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the nine months ended September 30, 2015 compared to 1.22% for the same period in 2014.
The net interest margin for the three months ended September 30, 2015 was 2.97% compared to 3.18% for the same period in 2014. The average yield on earning assets was 4.00% for the three months ended September 30, 2015 compared to 4.19% for the same period in 2014. The average cost of interest-bearing liabilities was 1.20% for the three months ended September 30, 2015 compared to 1.21% for the same period in 2014.
Assets
Total assets increased $20.3 million or 3.7% to $566.2 million at September 30, 2015 compared to $546.0 million at December 31, 2014. Loans, including loans held for sale, increased 6.7% to $446.2 million at September 30, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $15.1 million from December 31, 2014 to September 30, 2015.
Nonperforming Loans
Our nonperforming loans to total loans ratio has decreased to 1.01% at September 30, 2015 from 1.13% at December 31, 2014. Net loan charge-offs to average loans for the nine months ended September 30, 2015 of 0.08% increased from 0.06% for the nine months ended September 30, 2014. The allowance for loan losses was 0.92% of total loans at September 30, 2015 and 0.95% of total loans at December 31, 2014.
Liabilities
Deposits total $442.0 million at September 30, 2015, an increase of $19.5 million or 4.6%. The $19.5 million increase consists of a $6.2 million increase in interest-bearing transaction accounts, a $10.3 million increase in noninterest-bearing accounts, and a $4.5 million increase in time deposits, partially offset by a $0.9 million decrease in savings accounts and a $0.6 million decrease in money market accounts. Borrowed funds increased by $1.0 million or 1.6%.
Shareholders' Equity
Shareholders' equity decreased $0.8 million to $54.7 million at September 30, 2015 compared to December 31, 2014. The decrease is primarily the result of the repurchase of a warrant in May 2015 that had been issued to the United States Treasury Department at a purchase price of $1.5 million. The current level of shareholders' equity equates to a book value per share of $16.49 at September 30, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 and $0.69 for the three and nine months ended for both September 30, 2015 and 2014.
Elmira Savings Bank, with $566.2 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; a loan center in Cortland County, NY; 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) September 30, December 31,
-----------------------------------------
2015 2014 % Change
------------- ------------- -----------
ASSETS
Cash and due from banks $ 12,916 $ 7,959 62.3%
Federal funds sold and other
short-term investments 102 606 -83.2%
------------- ------------- -----------
Total cash and cash equivalents 13,018 8,565 52.0%
Securities available for sale, at
fair value 50,509 65,624 -23.0%
Securities held to maturity -
fair value $9,315 at September
30, 2015, and $7,641 at December
31, 2014 9,132 7,389 23.6%
Federal Reserve and Federal Home
Loan Bank (FHLB) stock, at cost 11,073 11,182 -1.0%
Loans held for sale 3,344 787 324.9%
Loans receivable 442,859 417,359 6.1%
Less: Allowance for loan losses 4,082 3,974 2.7%
------------- ------------- -----------
Net loans 438,777 413,385 6.1%
Premises and equipment, net 10,487 9,475 10.7%
Bank-owned life insurance 13,089 12,790 2.3%
Accrued interest receivable 1,640 1,566 4.7%
Intangible assets, net 76 125 -39.2%
Goodwill 12,320 12,320 -
Other assets 2,763 2,761 0.1%
------------- ------------- -----------
Total assets $ 566,228 $ 545,969 3.7%
============= ============= ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits $ 442,046 $ 422,561 4.6%
Borrowings 63,000 62,000 1.6%
Other liabilities 6,525 5,915 10.3%
------------- ------------- -----------
Total liabilities 511,571 490,476 4.3%
------------- ------------- -----------
Shareholders' equity:
Preferred stock, $1,000
liquidation value per issued
share; 5,000,000 shares
authorized; 10,000 shares issued
at September 30, 2015 and at
December 31, 2014 9,700 9,700 -
Common stock, $1 par value;
authorized 5,000,000 shares;
2,820,745 shares issued at
September 30, 2015 and 2,809,364
shares issued at December 31,
2014 2,821 2,809 0.4%
Additional paid-in capital 41,191 42,365 -2.8%
Retained earnings 3,303 2,769 19.3%
Treasury stock, at cost - 98,118
shares at September 30, 2015 and
104,418 shares at December 31,
2014 (2,907) (3,053) -4.8%
Accumulated other comprehensive
income 496 849 -41.6%
------------- ------------- -----------
Total Elmira Savings Bank
shareholders' equity 54,604 55,439 -1.5%
Noncontrolling interest 53 54 -1.9%
------------- ------------- -----------
Total shareholders' equity 54,657 55,493 -1.5%
------------- ------------- -----------
Total liabilities and
shareholders' equity $ 566,228 $ 545,969 3.7%
============= ============= ===========
ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Three Months Ended Nine Months
September 30, Ended September 30,
--------------------------------------------------------------
(in
thousands,
except for
per share
data) 2015 2014 % Change 2015 2014 % Change
---------- ---------- -------- ---------- ---------- --------
Interest and
dividend
income:
Interest
and fees
on loans $ 4,624 $ 4,412 4.8% $ 13,656 $ 13,111 4.2%
Interest
and
dividends
on
securities
Taxable 331 393 -15.8% 1,063 1,269 -16.2%
Non-
taxable 245 221 10.9% 709 629 12.7%
---------- ---------- -------- ---------- ---------- --------
Total
interest
and
dividend
income 5,200 5,026 3.5% 15,428 15,009 2.8%
---------- ---------- -------- ---------- ---------- --------
Interest
expense:
Interest on
deposits 786 753 4.4% 2,254 2,240 0.6%
Interest on
borrowings 562 471 19.3% 1,668 1,375 21.3%
---------- ---------- -------- ---------- ---------- --------
Total
interest
expense 1,348 1,224 10.1% 3,922 3,615 8.5%
---------- ---------- -------- ---------- ---------- --------
Net interest
income 3,852 3,802 1.3% 11,506 11,394 1.0%
Provision
for loan
losses 170 138 23.2% 360 267 34.8%
---------- ---------- -------- ---------- ---------- --------
Net interest
income
after
provision
for loan
losses 3,682 3,664 0.5% 11,146 11,127 0.2%
---------- ---------- -------- ---------- ---------- --------
Noninterest
income:
Service
fees 376 380 -1.1% 1,099 1,074 2.3%
Gain on
sale of
loans held
for sale 870 483 80.1% 1,681 1,276 31.7%
Gain on
sale of
securities - - - 284 421 -32.5%
Other
service
fees 174 170 2.4% 532 510 4.3%
Earnings on
bank-owned
life
insurance 98 86 14.0% 298 308 -3.2%
Other 21 36 -41.7% 115 129 -10.7%
---------- ---------- -------- ---------- ---------- --------
Total
noninterest
income 1,539 1,155 33.2% 4,009 3,718 7.8%
---------- ---------- -------- ---------- ---------- --------
Noninterest
expense:
Salaries
and
benefits 1,862 2,512 -25.9% 5,407 6,083 -11.1%
Net
occupancy 319 317 0.6% 1,046 1,064 -1.7%
Equipment 272 263 3.4% 780 763 2.2%
Marketing
and public
relations 209 210 -0.5% 635 614 3.4%
Professional
fees 225 167 34.7% 628 523 20.1%
Other 838 721 16.2% 2,320 2,050 13.2%
---------- ---------- -------- ---------- ---------- --------
Total
noninterest
expense 3,725 4,190 -11.1% 10,816 11,097 -2.5%
---------- ---------- -------- ---------- ---------- --------
Income
before
income
taxes 1,496 629 137.8% 4,339 3,748 15.8%
Income taxes 439 154 185.1% 1,253 1,114 12.5%
---------- ---------- -------- ---------- ---------- --------
Net income 1,057 475 122.5% 3,086 2,634 17.2%
Less: Net
income
attributable
to
noncontrolling
interest - - - - - -
---------- ---------- -------- ---------- ---------- --------
Net income
attibutable
to Elmira
Savings
Bank 1,057 475 122.5% 3,086 2,634 17.2%
Dividend on
preferred
stock 225 225 - 675 675 -
---------- ---------- -------- ---------- ---------- --------
Income
available
to common
shareholders$ 832 $ 250 232.8% $ 2,411 $ 1,959 23.1%
========== ========== ======== ========== ========== ========
Basic
earnings
per share $ 0.31 $ 0.09 244.4% $ 0.89 $ 0.73 21.9%
========== ========== ======== ========== ========== ========
Diluted
earnings
per share $ 0.30 $ 0.09 233.3% $ 0.87 $ 0.70 24.3%
========== ========== ======== ========== ========== ========
Weighted
average
shares
outstanding
- basic 2,710,219 2,684,475 1.0% 2,705,958 2,672,010 1.3%
========== ========== ======== ========== ========== ========
Weighted
average
shares
outstanding
- diluted 2,730,365 2,802,609 -2.6% 2,772,737 2,796,982 -0.9%
========== ========== ======== ========== ========== ========
Dividends
per share $ 0.23 $ 0.23 - $ 0.69 $ 0.69 -
========== ========== ======== ========== ========== ========
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in
Thousands) For the Nine Months Ended
----------------------------------------------------------
September 30, 2015 September 30, 2014
---------------------------- ----------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
--------- --------- -------- --------- --------- --------
Loans $ 428,567 $ 13,656 4.25% $ 393,254 $ 13,111 4.44%
Short-term
investments 1,072 - 0.03 985 1 0.02
Securities 77,665 1,772 3.04 76,520 1,897 3.31
--------- --------- -------- --------- --------- --------
Total interest-
earning assets 507,304 15,428 4.05 470,759 15,009 4.25
--------- --------- -------- --------- --------- --------
Noninterest-
earning assets 57,643 43,903
--------- ---------
TOTAL ASSETS $ 564,947 $ 514,662
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits $ 363,781 $ 2,254 0.83 $ 336,891 $ 2,240 0.89
Borrowings 73,011 1,668 3.01 57,620 1,375 3.14
--------- --------- -------- --------- --------- --------
Total interest-
bearing
liabilities 436,792 3,922 1.19 394,511 3,615 1.22
--------- --------- -------- --------- --------- --------
Noninterest-
bearing
liabilities 72,604 64,677
Shareholders'
equity 55,551 55,474
--------- ---------
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY $ 564,947 $ 514,662
========= =========
Interest rate
spread 2.86% 3.03%
======== ========
Net interest
income/margin $ 11,506 3.03% $ 11,394 3.23%
========= ======== ========= ========
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in
Thousands) For the Three Months Ended
----------------------------------------------------------
September 30, 2015 September 30, 2014
---------------------------- ----------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
--------- --------- -------- --------- --------- --------
Loans $ 440,467 $ 4,624 4.17% $ 400,745 $ 4,412 4.38%
Short-term
investments 675 - 0.03 901 - 0.02
Securities 76,319 576 3.01 75,821 614 3.24
--------- --------- -------- --------- --------- --------
Total interest-
earning assets 517,461 5,200 4.00 477,467 5,026 4.19
--------- --------- -------- --------- --------- --------
Noninterest-
earning assets 57,683 44,325
--------- ---------
TOTAL ASSETS $ 575,144 $ 521,792
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits $ 371,492 $ 786 0.84 $ 339,126 $ 753 0.88
Borrowings 73,196 562 3.00 58,563 471 3.15
--------- --------- -------- --------- --------- --------
Total interest-
bearing
liabilities 444,688 1,348 1.20 397,689 1,224 1.21
--------- --------- -------- --------- --------- --------
Noninterest-
bearing
liabilities 75,287 68,062
Shareholders'
equity 55,169 56,041
--------- ---------
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY $ 575,144 $ 521,792
========= =========
Interest rate
spread 2.80% 2.98%
======== ========
Net interest
income/margin $ 3,852 2.97% $ 3,802 3.18%
========= ======== ========= ========
Quarter Ended
(Dollars in
Thousands,
Except Per
Share Data) 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014
---------- ---------- ---------- ---------- ----------
Operating Data
Net income $ 1,057 $ 1,019 $ 1,010 $ 1,031 $ 475
Net interest
income 3,852 3,829 3,825 4,018 3,802
Provision for
loan losses 170 140 50 140 138
Net security
gains - 80 204 - -
Non-interest
income, ex.
Net security
gains 1,539 1,155 1,031 1,039 1,155
Non-interest
expense 3,725 3,522 3,569 3,406 4,190
Performance
Statistics
Net interest
margin 2.97% 3.04% 3.07% 3.24% 3.18%
Annualized
return on
average
assets 0.73% 0.72% 0.74% 0.76% 0.36%
Annualized
return on
average
equity 7.60% 7.39% 7.29% 7.37% 3.36%
Annualized net
loan charge-
offs to avg
loans 0.10% 0.11% 0.02% 0.09% -0.01%
Net charge-
offs
(recoveries) 117 114 21 94 (7)
Efficiency
ratio 69.1% 69.5% 70.5% 67.4% 84.5%
Per Share Data
Basic earnings
per share $ 0.31 $ 0.29 $ 0.29 $ 0.30 $ 0.09
Diluted
earnings per
share 0.30 0.29 0.28 0.29 0.09
Dividend
declared per
share 0.23 0.23 0.23 0.23 0.23
Book value 16.49 16.34 16.96 16.91 16.76
Common stock
price:
High 20.81 20.82 23.00 23.00 24.54
Low 19.05 19.43 19.99 20.50 20.16
Close 19.20 20.09 20.40 23.00 22.25
Weighted
average
common
shares:
Basic 2,710 2,707 2,701 2,693 2,684
Fully
diluted 2,730 2,776 2,812 2,808 2,803
End-of-period
common
shares:
Issued 2,821 2,821 2,813 2,809 2,809
Treasury 98 98 98 104 104
Financial
Condition Data:
General
Total assets $ 566,228 $ 572,890 $ 562,185 $ 545,969 $ 533,726
Loans, net 438,777 431,993 416,235 413,385 406,168
Intangibles 12,396 12,412 12,428 12,445 12,464
Total deposits 442,046 437,663 426,075 422,561 405,681
Noninterest-
bearing 72,293 68,707 64,442 62,019 68,871
Savings 64,421 64,758 63,776 65,287 62,898
NOW 85,136 86,835 78,169 78,920 75,246
Money Market 19,912 20,678 22,112 20,512 21,498
Time
deposits 200,284 196,685 197,576 195,823 177,168
Total
interest-
bearing
deposits 369,753 368,956 361,633 360,542 336,810
Shareholders'
equity 54,657 54,233 55,818 55,493 55,088
Asset Quality
Non-performing
assets $ 4,545 $ 4,430 $ 4,790 $ 4,699 $ 4,575
Non-performing
assets to
total assets 0.80% 0.77% 0.85% 0.86% 0.86%
Allowance for
loan losses 4,082 4,028 4,002 3,974 3,928
Allowance for
loan losses
to total
loans 0.92% 0.92% 0.95% 0.95% 0.96%
Allowance for
loan losses
to non-
performing
loans 91.20% 91.75% 83.55% 84.57% 88.61%
Non-performing
loans to
total loans 1.01% 1.01% 1.14% 1.13% 1.08%
Capitalization
Shareholders'
equity to
total assets 9.65% 9.47% 9.93% 10.16% 10.32%
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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