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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 %
Borrowings         35,000       35,000     0.0 %
Other liabilities         5,050       6,117     -17.4 %
Total liabilities         496,372       497,879     -0.3 %
                 
Shareholders' equity:              
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares          
authorized; 10,000 shares issued at March 31, 2018 and at December 31, 2017   9,700       9,700     0.0 %
Common stock, $1 par value; 5,000,000 shares authorized; 3,419,879 shares          
issued at March 31, 2018 and 3,410,622 shares issued at December 31, 2017   3,420       3,411     0.3 %
Additional paid-in capital       50,306       50,258     0.1 %
Retained earnings       5,865       5,493     6.8 %
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares          
at March 31, 2018 and December 31, 2017     (12,202 )     (12,202 )   0.0 %
Accumulated other comprehensive loss     (254 )     (31 )   719.4 %
Total Elmira Savings Bank shareholders' equity     56,835       56,629     0.4 %
Noncontrolling interest       52       52     0.0 %
Total shareholders' equity       56,887       56,681     0.4 %
Total liabilities and shareholders' equity   $ 553,259     $ 554,560     -0.2 %
                 


ELMIRA SAVINGS BANK
CONSOLIDATED  STATEMENT OF INCOME
(unaudited)
             
    Three Months Ended    
    March 31,    
(in thousands, except for per share data)     2018     2017   % Change
             
Interest and dividend income:            
Interest and fees on loans   $ 4,796   $ 4,735   1.3 %
Interest and dividends on securities            
Taxable     252     244   3.3 %
Non-taxable     120     189   -36.5 %
Total interest and dividend income     5,168     5,168   0.0 %
             
Interest expense:            
Interest on deposits     750     730   2.7 %
Interest on borrowings     243     265   -8.3 %
Total interest expense     993     995   -0.2 %
Net interest income     4,175     4,173   0.0 %
Provision for loan losses     42     40   5.0 %
Net interest income after provision for loan losses     4,133     4,133   0.0 %
             
Noninterest income:            
Service fees     388     379   2.4 %
Gain on sale of loans held for sale     378     583   -35.2 %
Other service fees     193     176   9.7 %
Earnings on bank-owned life insurance     90     96   -6.3 %
Other     61     27   125.9 %
Total noninterest income     1,110     1,261   -12.0 %
             
Noninterest expense:            
Salaries and benefits     1,947     1,959   -0.6 %
Net occupancy     429     412   4.1 %
Equipment     337     312   8.0 %
Marketing and public relations     221     200   10.5 %
Professional fees     177     168   5.4 %
Other     717     777   -7.7 %
Total noninterest expense     3,828     3,828   0.0 %
Income before income taxes     1,415     1,566   -9.6 %
Income taxes     284     487   -41.7 %
Net income     1,131     1,079   4.8 %
Less: Net income attributable to noncontrolling interest     -     -   -  
             
Net income attibutable to Elmira Savings Bank     1,131     1,079   4.8 %
             
Dividend on preferred stock     -     225   -100.0 %
Income available to common shareholders   $ 1,131   $ 854   32.4 %
             
             
Basic earnings per share   $ 0.34   $ 0.31   9.7 %
             
Diluted earnings per share   $ 0.34   $ 0.31   9.7 %
             
Weighted average shares outstanding - basic     3,308,999     2,739,157   20.8 %
             
Weighted average shares outstanding - diluted     3,322,721     2,757,422   20.5 %
             
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, 2018     March 31, 2017  
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans receivable $ 453,362   $ 4,796   4.25 % $ 453,195   $ 4,735   4.20 %
Federal funds sold and other short-term investments   433     2   1.33       1,887     2   0.45  
Securities   41,519     370   3.59       49,696     431   3.48  
Total interest-earning assets   495,314     5,168   4.19       504,778     5,168   4.11  
                           
Noninterest-earning assets   57,887               59,626          
                           
TOTAL ASSETS $ 553,201             $ 564,404          
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
Interest-bearing deposits $ 381,823   $ 750   0.80     $ 388,286   $ 730   0.76  
Borrowings   35,515     243   2.73       42,205     265   2.51  
Total interest-bearing liabilities   417,338     993   0.96       430,491     995   0.93  
                           
Noninterest-bearing liabilities   78,744               77,351          
Shareholders' equity   57,119               56,562          
                           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 553,201             $ 564,404          
Interest rate spread         3.23 %           3.18 %
Net interest income/margin     $ 4,175   3.38 %       $ 4,173   3.32 %
                           


        Quarter Ended
(Dollars and Shares in Thousands, Except Per Share Data) 3/31/2018   12/31/2017   9/30/2017   6/30/2017   3/31/2017
Operating Data                    
  Net income $ 1,131   $ 1,449   $ 1,215   $ 1,108   $ 1,079  
  Net interest income   4,175     4,142     4,047     4,186     4,173  
  Provision for loan losses   42     580     120     155     40  
  Non-interest income   1,110     1,198     1,626     1,352     1,261  
  Non-interest expense   3,828     4,515     3,760     3,781     3,828  
Performance Statistics                    
  Net interest margin   3.38%     3.31%     3.27%     3.36%     3.32%  
  Annualized return on average assets   0.83%     1.03%     0.84%     0.79%     0.78%  
  Annualized return on average equity   8.03%     9.04%     7.32%     7.01%     7.74%  
  Annualized net loan charge-offs to avg loans   0.05%     0.46%     0.03%     0.13%     0.01%  
  Net charge-offs   51     528     28     144     16  
  Efficiency ratio   72.4%     84.6%     66.3%     68.3%     70.4%  
Per Share Data                    
  Basic earnings per share $ 0.34   $ 0.39   $ 0.30   $ 0.28   $ 0.31  
  Diluted earnings per share   0.34     0.39     0.30     0.28     0.31  
  Dividend declared per share   0.23     0.23     0.23     0.23     0.23  
  Book value   17.09     17.07     16.84     16.77     16.82  
  Common stock price:                    
    High   20.95     20.90     21.10     21.75     21.75  
    Low   20.15     18.90     19.80     19.65     20.28  
    Close   20.50     20.45     20.10     20.30     21.60  
  Weighted average common shares:                    
    Basic   3,309     3,302     3,298     3,154     2,739  
    Fully diluted   3,323     3,316     3,312     3,170     2,757  
  End-of-period common shares:                    
    Issued   3,420     3,411     3,409     3,405     2,850  
    Treasury   94     94     94     94     94  
                         
                         
Financial Condition Data:                    
General                    
  Total assets $ 553,259   $ 554,560   $ 565,042   $ 574,332   $ 556,644  
  Loans, net   447,131     454,187     443,543     448,024     446,223  
  Intangibles   12,320     12,320     12,324     12,329     12,334  
  Total deposits   456,322     456,762     454,826     460,140     450,376  
    Noninterest-bearing   73,540     74,072     75,625     77,027     71,870  
    Savings   70,574     70,339     68,253     70,668     70,300  
    NOW   86,205     86,799     87,612     86,896     86,633  
    Money Market   22,928     25,363     25,184     24,859     27,697  
    Time deposits   203,075     200,189     198,152     200,690     193,876  
    Total interest-bearing deposits   382,782     382,690     379,201     383,113     378,506  
  Shareholders' equity   56,887     56,681     65,590     65,280     56,103  
Asset Quality                    
  Non-performing assets $ 3,181   $ 2,933   $ 3,793   $ 3,494   $ 4,234  
  Non-performing assets to total assets   0.57%     0.53%     0.67%     0.61%     0.76%  
  Allowance for loan losses   4,433     4,442     4,390     4,298     4,287  
  Allowance for loan losses to total loans   0.98%     0.97%     0.98%     0.95%     0.95%  
  Allowance for loan losses to                    
    non-performing loans   142.59%     153.97%     118.46%     129.15%     105.93%  
  Non-performing loans to total loans   0.70%     0.64%     0.84%     0.74%     0.91%  
Capitalization                    
  Shareholders' equity to total assets   10.28%     10.22%     11.61%     11.37%     10.08%  

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

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