Market Overview

Elmira Savings Bank Reports First Quarter Earnings

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ELMIRA, N.Y., April 24, 2018 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,131,000 for the three months ended March 31, 2018 compared to $1,079,000 for the same period in 2017.
  • Diluted earnings per share were $.34 per share for the three months ended March 31, 2018 compared to $.31 per share for the same period in 2017. 
  • Return on average assets was .83% for the three months ended March 31, 2018 and .78% for the same period in 2017.
  • Return on average equity was 8.03% for the three months ended March 31, 2018 compared to 7.74% for the same period in 2017.

"The increase in net income combined with the effect of our capital restructuring last year has improved diluted earnings per share by 10% from the first quarter of 2018 to the same period one year ago" said Thomas M. Carr, President and CEO.  Carr continued, "We are pleased the Bank's net interest margin continues to improve and that recent asset quality improvements have been sustained."  

Net Income

Net income totaled $1,131,000 for the three months ended March 31, 2018, an increase of $52,000 or 4.8% from the $1,079,000 recorded for the same period in 2017.  This increase was the net result of an increase in net interest income of $2,000, a decrease in tax expense of $203,000, and consistent levels in noninterest expense, offset by an increase in the provision for loan losses of $2,000 and a decrease in noninterest income of $151,000.

Basic and diluted earnings per share for the three months ended March 31, 2018 were both $.34 per share compared to $.31 per share for both for the same period in 2017.

Net Interest Margin

The net interest margin for the three months ended March 31, 2018 was 3.38% compared to 3.32% for the first quarter of 2017.  The yield on average earning assets was 4.19% for the three months ended March 31, 2018 compared to 4.11% for the same period in 2017.  The average cost of interest-bearing liabilities was .96% for the three months ended March 31, 2018 compared to .93% for the three months ended March 31, 2017.

Assets

Total assets decreased $1.3 million or 0.2% to $553.3 million at March 31, 2018 compared to $554.6 million at December 31, 2017.  Loans receivable decreased 1.5% to $451.6 million at March 31, 2018 compared to December 31, 2017.  The available-for-sale investment portfolio decreased $1.0 million from December 31, 2017 to March 31, 2018, and cash and cash equivalents increased by $8.7 million from December 31, 2017 to March 31, 2018.

Nonperforming Loans

Our nonperforming loans to total loans ratio was .70% at March 31, 2018 and .64% at December 31, 2017.  Net loan charge-offs to average loans for the three months ended March 31, 2018 was .05% and .01% for the three months ended March 31, 2017.  The allowance for loan losses was .98% of total loans at March 31, 2018 and .97% at December 31, 2017.

Liabilities

Deposits totaled $456.3 million at March 31, 2018, a decrease of $440,000 or 0.1% from the December 31, 2017 total of $456.8 million.  Borrowed funds remained unchanged from December 31, 2017 at $35.0 million.

Shareholders' Equity

Shareholders' equity increased $206,000 to $56.9 million at March 31, 2018 compared to December 31, 2017. The current level of shareholders' equity equates to a book value per share of $17.09 at March 31, 2018, compared to $17.07 at December 31, 2017.  Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 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 months ended March 31, 2018 versus $225,000 paid in preferred dividends for the same period in 2017.

Elmira Savings Bank, with $553.3 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)   March 31,   December 31,    
          2018       2017     % Change
ASSETS                
                 
Cash and due from banks     $ 16,467     $ 7,800     111.1 %
Federal funds sold and other short-term investments     96       97     -1.0 %
Total cash and cash equivalents       16,563       7,897     109.7 %
                 
Securities available for sale, at fair value     23,009       24,056     -4.4 %
Securities held to maturity - fair value $8,104            
at March 31, 2018, and $8,186 at December 31, 2017     7,893       8,039     -1.8 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost   9,765       10,221     -4.5 %
                 
Loans held for sale       892       1,999     -55.4 %
                 
Loans receivable         451,564       458,629     -1.5 %
Less: Allowance for loan losses       4,433       4,442     -0.2 %
Net loans         447,131       454,187     -1.6 %
                 
Premises and equipment, net       16,667       16,772     -0.6 %
Bank-owned life insurance       14,072       13,982     0.6 %
Accrued interest receivable       1,019       1,497     -31.9 %
Goodwill         12,320       12,320     0.0 %
Other assets         3,928       3,590     9.4 %
Total assets       $ 553,259     $ 554,560     -0.2 %
                 
LIABILITIES AND SHAREHOLDERS' EQUITY            
                 
Deposits       $ 456,322     $ 456,762     -0.1 %
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