ELMIRA, N.Y., April 23, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

• Net income was $927,000 for the three months ended March 31, 2019 compared to $1,131,000 for the same period in 2018.

• Diluted earnings per share were $.26 per share for the three months ended March 31, 2019 compared to $.32 per share for the same period in 2018. 

• Return on average assets was .64% for the three months ended March 31, 2019 and .83% for the same period in 2018.

• Return on average equity was 6.41% for the three months ended March 31, 2019 compared to 8.03% for the same period in 2018.

• Loans receivable of $489.2 million were up 8.3% over the same period in 2018, and are up 1.4% compared to December 31, 2018.

• Total deposits of $503.1 million reflect an increase of 10.3% over the same period last year, and are up 2.4% from December 31, 2018.

“Net income is lower year to year due to lower revenue and higher provision expense.  We are pleased with the continued growth in deposits across all the market areas our branches are located” said Thomas M. Carr, President and CEO.  Carr continued, “we were pleased to increase loans by 1.4% and deposits by 2.4% during the first quarter.”

Net Income

Net income totaled $927,000 for the three months ended March 31, 2019, a decrease of $204,000 or 18.0% from the $1,131,000 recorded for the same period in 2018.  This decrease was the net result of a decrease in noninterest income of $125,000, a decrease in net interest income of $75,000, an increase in the provision for loan losses of $90,000, and an increase in noninterest expense of $26,000, offset by a decrease in tax expense of $112,000.

Basic and diluted earnings per share for the three months ended March 31, 2019 were $.27 and $.26 per share compared to $.33 and $.32 per share for the same period in 2018.  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 three months ended March 31, 2019 was 3.13% compared to 3.38% for the first quarter of 2018.  The yield on average earning assets was 4.27% for the three months ended March 31, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.34% for the three months ended March 31, 2019 compared to .96% for the three months ended March 31, 2018.

Assets

Total assets increased $6.6 million or 1.1% to $596.6 million at March 31, 2019 compared to $590.0 million at December 31, 2018.  Loans receivable increased 1.4% to $489.2 million at March 31, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $393,000 from December 31, 2018 to March 31, 2019, and cash and cash equivalents decreased by $1.1 million from December 31, 2018 to March 31, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.01% at March 31, 2019 and .94% at December 31, 2018.  Net loan charge-offs to average loans for the three months ended March 31, 2019 was .10% and .05% for the three months ended March 31, 2018.  The allowance for loan losses was .90% of total loans at March 31, 2019 and .91% at December 31, 2018.

Liabilities

Deposits totaled $503.1 million at March 31, 2019, an increase of $11.6 million or 2.4% from the December 31, 2018 total of $491.5 million.  Borrowed funds decreased by $2.0 million from December 31, 2018 to $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $282,000 to $58.2 million at March 31, 2019 compared to December 31, 2018. The current level of shareholders’ equity equates to a book value per share of $16.59 at March 31, 2019, compared to $16.52 at December 31, 2018.  Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2018 and $.22 for the three months ended March 31, 2018.    

Elmira Savings Bank, with $596.6 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 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,
				2019				2018				% Change
ASSETS
Cash and due from banks				$	18,347			$	19,429			-5.6	%
Federal funds sold and other short-term investments					93				94			-1.1	%
Total cash and cash equivalents					18,440				19,523			-5.5	%
Securities available for sale, at fair value					24,658				25,051			-1.6	%
Securities held to maturity - fair value $7,565
at March 31, 2019, and $7,638 at December 31, 2018					7,439				7,518			-1.1	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost					9,380				9,462			-0.9	%
Loans held for sale					843				1,392			-39.4	%
Loans receivable					489,167				482,272			1.4	%
Less: Allowance for loan losses					4,387				4,372			0.3	%
Net loans					484,780				477,900			1.4	%
Premises and equipment, net					18,963				16,846			12.6	%
Bank-owned life insurance					14,536				14,444			0.6	%
Accrued interest receivable					1,622				1,566			3.6	%
Goodwill					12,320				12,320			0.0	%
Other assets					3,632				4,018			-9.6	%
Total assets				$	596,613			$	590,040			1.1	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits				$	503,089			$	491,517			2.4	%
Borrowings					29,000				31,000			-6.5	%
Other liabilities					6,293				9,574			-34.3	%
Total liabilities					538,382				532,091			1.2	%
Shareholders' equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares
authorized; 10,000 shares issued at March 31, 2019 and at December 31, 2018					9,700				9,700			0.0	%
Common stock, $1 par value; 5,000,000 shares authorized; 3,601,136 shares
issued at March 31, 2019 and 3,597,605 shares issued at December 31, 2018					3,601				3,598			0.1	%
Additional paid-in capital					53,839				53,784			0.1	%
Retained earnings					3,296				3,176			3.8	%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares
at March 31, 2019 and December 31, 2018					(12,202	)			(12,202	)		0.0	%
Accumulated other comprehensive loss					(53	)			(158	)		-66.5	%
Total Elmira Savings Bank shareholders' equity					58,181				57,898			0.5	%
Noncontrolling interest					50				51			-2.0	%
Total shareholders' equity					58,231				57,949			0.5	%
Total liabilities and shareholders' equity				$	596,613			$	590,040			1.1	%

 

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
		Three Months Ended
		March 31,
(in thousands, except for per share data)		2019			2018			% Change
Interest and dividend income:
Interest and fees on loans		$	5,183		$	4,796		8.1	%
Interest and dividends on securities
Taxable			273			252		8.3	%
Non-taxable			115			120		-4.2	%
Total interest and dividend income			5,571			5,168		7.8	%
Interest expense:
Interest on deposits			1,261			750		68.1	%
Interest on borrowings			210			243		-13.6	%
Total interest expense			1,471			993		48.1	%
Net interest income			4,100			4,175		-1.8	%
Provision for loan losses			132			42		214.3	%
Net interest income after provision for loan losses			3,968			4,133		-4.0	%
Noninterest income:
Service fees			356			388		-8.2	%
Gain on sale of loans held for sale			289			378		-23.5	%
Other service fees			202			193		4.7	%
Earnings on bank-owned life insurance			92			90		2.2	%
Other			46			61		-24.6	%
Total noninterest income			985			1,110		-11.3	%
Noninterest expense:
Salaries and benefits			2,020			1,947		3.7	%
Net occupancy			445			429		3.7	%
Equipment			363			337		7.7	%
Marketing and public relations			246			221		11.3	%
Professional fees			138			177		-22.0	%
Other			642			717		-10.5	%
Total noninterest expense			3,854			3,828		0.7	%
Income before income taxes			1,099			1,415		-22.3	%
Income taxes			172			284		-39.4	%
Net income			927			1,131		-18.0	%
Less: Net income attributable to noncontrolling interest			-			-		-
Net income attributable to Elmira Savings Bank			927			1,131		-18.0	%
Dividend on preferred stock			-			-		-
Income available to common shareholders		$	927		$	1,131		-18.0	%
Basic earnings per share		$	0.27		$	0.33		-18.2	%
Diluted earnings per share		$	0.26		$	0.32		-18.8	%
Weighted average shares outstanding - basic			3,491,821			3,474,449		0.5	%
Weighted average shares outstanding - diluted			3,501,037			3,488,857		0.3	%
Dividends per share		$	0.23		$	0.22		4.5	%
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
	March 31, 2019									March 31, 2018
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	481,954		$	5,183		4.32	%		$	453,362		$	4,796		4.25	%
Short-term investments		479			2		1.88				433			2		1.33
Securities		41,727			386		3.72				41,519			370		3.59
Total interest-earning assets		524,160			5,571		4.27				495,314			5,168		4.19
Noninterest-earning assets		61,310									57,887
TOTAL ASSETS	$	585,470								$	553,201
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits	$	415,680		$	1,261		1.23			$	381,823		$	750		0.80
Borrowings		29,755			210		2.82				35,515			243		2.73
Total interest-bearing liabilities		445,435			1,471		1.34				417,338			993		0.96
Noninterest-bearing liabilities		81,406									78,744
Shareholders' equity		58,629									57,119
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	585,470								$	553,201
Interest rate spread							2.93	%								3.23	%
Net interest income/margin				$	4,100		3.13	%					$	4,175		3.38	%

 

						Quarter Ended
(Dollars in Thousands, Except Per Share Data)				3/31/2019			12/31/2018			9/30/2018			6/30/2018			3/31/2018
Operating Data
	Net income		$	927		$	935		$	1,010		$	1,163		$	1,131
	Net interest income			4,100			4,225			4,090			4,080			4,175
	Provision for loan losses			132			150			150			25			42
	Non-interest income, ex. Net security gains			985			1,124			1,154			1,130			1,110
	Non-interest expense			3,854			4,038			3,891			3,732			3,828
Performance Statistics
	Net interest margin			3.13	%		3.26	%		3.26	%		3.32	%		3.38	%
	Annualized return on average assets			0.64	%		0.65	%		0.71	%		0.83	%		0.83	%
	Annualized return on average equity			6.41	%		6.39	%		6.94	%		8.11	%		8.03	%
	Annualized net loan charge-offs to avg loans			0.10	%		0.17	%		0.08	%		0.09	%		0.05	%
	Net charge-offs			117			199			91			96			51
	Efficiency ratio			75.8	%		75.5	%		74.2	%		71.6	%		72.4	%
Per Share Data
	Basic earnings per share		$	0.27		$	0.27		$	0.29		$	0.33		$	0.33
	Diluted earnings per share			0.26			0.27			0.29			0.33			0.32
	Dividend declared per share			0.23			0.23			0.23			0.23			0.22
	Book value			16.59			16.52			16.42			16.36			16.27
	Common stock price:
		High		19.09			20.47			21.00			20.60			19.95
		Low		16.32			15.77			20.10			19.29			19.19
		Close		16.75			17.45			20.40			20.43			19.52
	Weighted average common shares:
		Basic		3,492			3,487			3,481			3,477			3,474
		Fully diluted		3,501			3,499			3,497			3,491			3,489
	End-of-period common shares:
		Issued		3,601			3,598			3,593			3,593			3,591
		Treasury		94			94			94			94			94
		Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.
Financial Condition Data:
General
	Total assets		$	596,613		$	590,040		$	570,785		$	562,924		$	553,259
	Loans, net			484,780			477,900			462,713			448,690			447,131
	Intangibles			12,320			12,320			12,320			12,320			12,320
	Total deposits			503,089			491,517			474,449			468,293			456,322
		Noninterest-bearing		76,414			81,690			78,324			76,880			73,540
		Savings		71,642			75,483			71,748			73,200			70,574
		NOW		85,808			89,666			89,835			87,402			86,205
		Money Market		19,405			20,087			18,910			21,934			22,928
		Time deposits		249,820			224,591			215,632			208,877			203,075
		Total interest-bearing deposits		426,675			409,827			396,125			391,413			382,782
	Shareholders' equity			58,231			57,949			57,512			57,299			56,887
Asset Quality
	Non-performing assets		$	5,081		$	4,649		$	4,520		$	4,560		$	3,181
	Non-performing assets to total assets			0.85	%		0.79	%		0.79	%		0.81	%		0.57	%
	Allowance for loan losses			4,387			4,372			4,421			4,362			4,433
	Allowance for loan losses to total loans			0.90	%		0.91	%		0.95	%		0.96	%		0.98	%
	Allowance for loan losses to
		non-performing loans		89.71	%		97.16	%		100.00	%		99.18	%		142.59	%
	Non-performing loans to total loans			1.01	%		0.94	%		0.96	%		0.98	%		0.70	%
Capitalization
	Shareholders' equity to total assets			9.76	%		9.82	%		10.08	%		10.18	%		10.28	%

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

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.