Elmira Savings Bank Reports Second Quarter Earnings
/EINPresswire.com/ -- ELMIRA, NY -- (Marketwired) -- 07/20/16 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,057,000 and $2,093,000 for the three and six months ended June 30, 2016 compared to $1,019,000 and $2,029,000 for the same periods in 2015.
- Diluted earnings per share were $.30 per share and $.60 per share for the three and six months ended June 30, 2016 compared to $.29 per share and $.57 per share for the same periods in 2015.
- Return on average assets was .75% for both the three and six months ended June 30, 2016 compared to .72% and .73% for the same periods in 2015.
- Return on average equity was 7.65% and 7.58% for the three and six months ended June 30, 2016 compared to 7.39% and 7.34% for the same periods in 2015.
"During the first six months of 2016, the Bank experienced 4% growth in the loan portfolio and deposit growth of 7%," said Thomas M. Carr, President and CEO. Carr continued, "In addition, we have increased our noninterest income by 13% and expanded our net interest income by 6%."
Net Income
Net income totaled $2,093,000 for the six months ended June 30, 2016, an increase of $64,000 or 3% from the $2,029,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $319,000 and an increase in net interest income of $500,000, offset by an increase in noninterest expense of $647,000, an increase in the provision for loan losses of $35,000, and an increase in tax expense of $73,000.
Net income totaled $1,057,000 for the three months ended June 30, 2016, an increase of $38,000 or 4% from the $1,019,000 recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $203,000, a decrease in the provision for loan losses of $55,000, and an increase in net interest income of $225,000, offset by an increase in noninterest expense of $369,000 and an increase in tax expense of $76,000.
Basic and diluted earnings per share for the six months ended June 30, 2016 were both $.60 per share compared to $.58 per share and $.57 per share for the same period in 2015. Basic and diluted earnings per share for the three months ended June 30, 2016 were $.31 per share and $.30 per share compared to $.29 per share for both for the same period in 2015.
Net Interest Margin
The net interest margin for the six months ended June 30, 2016 was 3.18% compared to 3.05% for the same period in 2015. The yield on average earning assets was 4.07% for the six months ended June 30, 2016 compared to 4.08% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the six months ended June 30, 2016 compared to 1.19% for the same period in 2015.
The net interest margin for the three months ended June 30, 2016 was 3.17% compared to 3.04% for the same period in 2015. The average yield on earning assets was 4.06% for the three months ended June 30, 2016 compared to 4.07% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the three months ended June 30, 2016 compared to 1.19% for the same period in 2015.
Assets
Total assets increased $13.4 million or 2.4% to $574.7 million at June 30, 2016 compared to $561.3 million at December 31, 2015. Loans, including loans held for sale, increased 3.8% to $472.3 million at June 30, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $8.4 million from December 31, 2015 to June 30, 2016.
Nonperforming Loans
Our nonperforming loans to total loans ratio has increased to 1.15% at June 30, 2016 from 1.05% at December 31, 2015. Net loan charge-offs to average loans for the six months ended June 30, 2016 of 0.04% decreased from 0.06% for the six months ended June 30, 2015. The allowance for loan losses was 0.92% of total loans at both June 30, 2016 and December 31, 2015.
Liabilities
Deposits total $470.5 million at June 30, 2016, an increase of $30.0 million or 6.8%. The $30.0 million increase consists of a $34.8 million increase in interest bearing transaction accounts, a $3.8 million increase in noninterest-bearing accounts, a $2.2 million increase in savings accounts, and a $1.8 million increase in money market accounts, partially offset by a $12.7 million decrease in time deposits. Borrowed funds decreased by $17.5 million or 29.4%.
Shareholders' Equity
Shareholders' equity increased $0.6 million to $55.4 million at June 30, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.69 at June 30, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2016 and 2015.
Elmira Savings Bank, with $574.7 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; 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, --------- ------------ -------- 2016 2015 % Change --------- ------------ -------- ASSETS Cash and due from banks $ 10,723 $ 5,352 100.4% Federal funds sold and other short-term investments 101 102 -1.0% --------- ------------ -------- Total cash and cash equivalents 10,824 5,454 98.5% Securities available for sale, at fair value 34,263 42,709 -19.8% Securities held to maturity - fair value $9,145 at June 30, 2016 and $9,010 at December 31, 2015 8,725 9,003 -3.1% Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 10,700 11,108 -3.7% Loans held for sale 4,873 3,630 34.2% Loans receivable 467,389 451,368 3.5% Less: Allowance for loan losses 4,285 4,148 3.3% --------- ------------ -------- Net loans 463,104 447,220 3.6% Premises and equipment, net 12,143 12,130 0.1% Bank-owned life insurance 13,393 13,188 1.6% Accrued interest receivable 1,467 1,541 -4.8% Intangible assets, net 40 61 -34.4% Goodwill 12,320 12,320 0.0% Other assets 2,869 2,980 -3.7% --------- ------------ -------- Total assets $ 574,721 $ 561,344 2.4% ========= ============ ======== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $ 470,462 $ 440,472 6.8% Borrowings 42,000 59,525 -29.4% Other liabilities 6,877 6,576 4.6% --------- ------------ -------- Total liabilities 519,339 506,573 2.5% --------- ------------ -------- Shareholders' equity: Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at June 30, 2016 and at December 31, 2015 9,700 9,700 0.0% Common stock, $1 par value; authorized 5,000,000 shares; 2,832,304 shares issued at June 30, 2016 and 2,820,745 shares issued at December 31, 2015 2,832 2,821 0.4% Additional paid-in capital 41,396 41,243 0.4% Retained earnings 3,875 3,488 11.1% Treasury stock, at cost - 98,118 shares at June 30, 2016 and December 31, 2015 (2,907) (2,907) 0.0% Accumulated other comprehensive income 433 373 16.1% --------- ------------ -------- Total Elmira Savings Bank shareholders' equity 55,329 54,718 1.1% Noncontrolling interest 53 53 0.0% --------- ------------ -------- Total shareholders' equity 55,382 54,771 1.1% --------- ------------ -------- Total liabilities and shareholders' equity $ 574,721 $ 561,344 2.4% ========= ============ ======== 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) 2016 2015 Change 2016 2015 Change ---------- ---------- ------ ---------- ---------- ------ Interest and dividend income: Interest and fees on loans $ 4,744 $ 4,570 3.8% $ 9,473 $ 9,032 4.9% Interest and dividends on securities Taxable 242 330 -26.7% 527 732 -28.0% Non-taxable 205 233 -12.0% 424 464 -8.6% ---------- ---------- ------ ---------- ---------- ------ Total interest and dividend income 5,191 5,133 1.1% 10,424 10,228 1.9% ---------- ---------- ------ ---------- ---------- ------ Interest expense: Interest on deposits 763 741 3.0% 1,497 1,468 2.0% Interest on borrowings 374 563 -33.6% 773 1,106 -30.1% ---------- ---------- ------ ---------- ---------- ------ Total interest expense 1,137 1,304 -12.8% 2,270 2,574 -11.8% ---------- ---------- ------ ---------- ---------- ------ Net interest income 4,054 3,829 5.9% 8,154 7,654 6.5% Provision for loan losses 85 140 -39.3% 225 190 18.4% ---------- ---------- ------ ---------- ---------- ------ Net interest income after provision for loan losses 3,969 3,689 7.6% 7,929 7,464 6.2% ---------- ---------- ------ ---------- ---------- ------ Noninterest income: Service fees 354 368 -3.8% 702 723 -2.9% Gain on sale of loans held for sale 749 457 63.9% 1,271 811 56.7% Gain on sale of securities - 80 -100.0% 180 284 -36.6% Other service fees 186 189 -1.6% 366 358 2.2% Earnings on bank-owned life insurance 108 106 1.9% 205 200 2.5% Other 41 35 17.1% 65 94 -30.9% ---------- ---------- ------ ---------- ---------- ------ Total noninterest income 1,438 1,235 16.4% 2,789 2,470 12.9% ---------- ---------- ------ ---------- ---------- ------ Noninterest expense: Salaries and benefits 1,969 1,751 12.5% 3,896 3,545 9.9% Net occupancy 353 335 5.4% 722 727 -0.7% Equipment 301 254 18.5% 576 508 13.4% Marketing and public relations 192 215 -10.7% 393 426 -7.7% Professional fees 194 223 -13.0% 374 403 -7.2% Other 882 744 18.5% 1,777 1,482 19.9% ---------- ---------- ------ ---------- ---------- ------ Total noninterest expense 3,891 3,522 10.5% 7,738 7,091 9.1% ---------- ---------- ------ ---------- ---------- ------ Income before income taxes 1,516 1,402 8.1% 2,980 2,843 4.8% Income taxes 459 383 19.8% 887 814 9.0% ---------- ---------- ------ ---------- ---------- ------ Net income 1,057 1,019 3.7% 2,093 2,029 3.2% Less: Net income attributable to noncontrolling interest - - - - - - ---------- ---------- ------ ---------- ---------- ------ Net income attibutable to Elmira Savings Bank 1,057 1,019 3.7% 2,093 2,029 3.2% Dividend on preferred stock 225 225 0.0% 450 450 0.0% ---------- ---------- ------ ---------- ---------- ------ Income available to common shareholders $ 832 $ 794 4.8% $ 1,643 $ 1,579 4.1% ========== ========== ====== ========== ========== ====== Basic earnings per share $ 0.31 $ 0.29 6.9% $ 0.60 $ 0.58 3.4% ========== ========== ====== ========== ========== ====== Diluted earnings per share $ 0.30 $ 0.29 3.4% $ 0.60 $ 0.57 5.3% ========== ========== ====== ========== ========== ====== Weighted average shares outstanding - basic 2,717,506 2,706,983 0.4% 2,716,710 2,703,787 0.5% ========== ========== ====== ========== ========== ====== Weighted average shares outstanding - diluted 2,734,970 2,776,116 -1.5% 2,733,992 2,793,883 -2.1% ========== ========== ====== ========== ========== ====== Dividends per share $ 0.23 $ 0.23 0.0% $ 0.46 $ 0.46 0.0% ========== ========== ====== ========== ========== ====== ELMIRA SAVINGS BANK AVERAGE BALANCES AND INTEREST RATES (Dollars in Thousands) For the Three Months Ended ------------------------------------------------------ June 30, 2016 June 30, 2015 -------------------------- -------------------------- Average Average Average Average ASSETS: Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Loans $ 457,695 $ 4,744 4.15% $ 427,499 $ 4,570 4.27% Short-term investments 691 - 0.20 1,040 - 0.03 Securities 53,202 447 3.36 74,952 563 3.01 --------- -------- ------- --------- -------- ------- Total interest- earning assets 511,588 5,191 4.06 503,491 5,133 4.07 --------- -------- ------- --------- -------- ------- Noninterest-earning assets 53,756 61,047 --------- --------- TOTAL ASSETS $ 565,344 $ 564,538 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits $ 384,003 $ 763 0.80 $ 361,447 $ 741 0.82 Borrowings 52,055 374 2.84 74,000 563 3.01 --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 436,058 1,137 1.04 435,447 1,304 1.19 --------- -------- ------- --------- -------- ------- Noninterest-bearing liabilities 73,662 73,728 Shareholders' equity 55,624 55,363 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 565,344 $ 564,538 ========= ========= Interest rate spread 3.02% 2.88% ======= ======= Net interest income/margin $ 4,054 3.17% $ 3,829 3.04% ======== ======= ======== ======= ELMIRA SAVINGS BANK AVERAGE BALANCES AND INTEREST RATES (Dollars in Thousands) For the Six Months Ended ------------------------------------------------------ June 30, 2016 June 30, 2015 -------------------------- -------------------------- Average Average Average Average ASSETS: Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Loans $ 455,762 $ 9,473 4.16% $ 422,517 $ 9,032 4.28% Short-term investments 536 - 0.19 1,273 1 0.02 Securities 56,416 951 3.37 78,350 1,195 3.06 --------- -------- ------- --------- -------- ------- Total interest- earning assets 512,714 10,424 4.07 502,140 10,228 4.08 --------- -------- ------- --------- -------- ------- Noninterest-earning assets 50,882 57,624 --------- --------- TOTAL ASSETS $ 563,596 $ 559,764 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits $ 379,304 $ 1,497 0.79 $ 359,861 $ 1,468 0.82 Borrowings 55,526 773 2.76 72,917 1,106 3.01 --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 434,830 2,270 1.04 432,778 2,574 1.19 --------- -------- ------- --------- -------- ------- Noninterest-bearing liabilities 73,255 71,241 Shareholders' equity 55,511 55,745 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 563,596 $ 559,764 ========= ========= Interest rate spread 3.03% 2.89% ======= ======= Net interest income/margin $ 8,154 3.18% $ 7,654 3.05% ======== ======= ======== ======= Quarter Ended (Dollars in Thousands, Except Per Share Data) 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 --------- --------- ---------- --------- --------- Operating Data Net income $ 1,057 $ 1,036 $ 1,036 $ 1,057 $ 1,019 Net interest income 4,054 4,100 4,128 3,852 3,829 Provision for loan losses 85 140 270 170 140 Net security gains - 180 - - 80 Non-interest income, ex. Net security gains 1,438 1,171 1,382 1,539 1,155 Non-interest expense 3,891 3,847 3,777 3,725 3,522 Performance Statistics Net interest margin 3.17% 3.19% 3.19% 2.97% 3.04% Annualized return on average assets 0.75% 0.74% 0.73% 0.73% 0.72% Annualized return on average equity 7.65% 7.52% 7.46% 7.60% 7.39% Annualized net loan charge-offs to avg loans 0.01% 0.07% 0.18% 0.10% 0.11% Net charge-offs (recoveries) 14 74 204 117 114 Efficiency ratio 70.8% 70.6% 68.5% 69.1% 69.5% Per Share Data Basic earnings per share $ 0.31 $ 0.30 $ 0.30 $ 0.31 $ 0.29 Diluted earnings per share 0.30 0.30 0.30 0.30 0.29 Dividend declared per share 0.23 0.23 0.23 0.23 0.23 Book value 16.69 16.59 16.53 16.49 16.34 Common stock price: High 20.10 20.55 21.13 20.81 20.82 Low 18.06 16.83 18.41 19.05 19.43 Close 19.66 18.01 19.88 19.20 20.09 Weighted average common shares: Basic 2,718 2,716 2,712 2,710 2,707 Fully diluted 2,735 2,733 2,731 2,730 2,776 End-of-period common shares: Issued 2,832 2,828 2,821 2,821 2,821 Treasury 98 98 98 98 98 Financial Condition Data: General Total assets $ 574,721 $ 560,020 $ 561,344 $ 566,228 $ 572,890 Loans, net 463,104 452,718 447,220 438,777 431,993 Intangibles 12,360 12,371 12,381 12,396 12,412 Total deposits 470,462 443,552 440,472 442,046 437,663 Noninterest- bearing 70,803 65,165 66,964 72,293 68,707 Savings 69,159 67,295 66,914 64,421 64,758 NOW 121,875 105,094 87,083 85,136 86,835 Money Market 25,172 25,281 23,382 19,912 20,678 Time deposits 183,453 180,717 196,129 200,284 196,685 Total interest- bearing deposits 399,659 378,387 373,508 369,753 368,956 Shareholders' equity 55,382 55,039 54,771 54,657 54,233 Asset Quality Non-performing assets $ 5,622 $ 5,328 $ 4,943 $ 4,545 $ 4,430 Non-performing assets to total assets 0.98% 0.95% 0.88% 0.80% 0.77% Allowance for loan losses 4,285 4,214 4,148 4,082 4,028 Allowance for loan losses to total loans 0.92% 0.92% 0.92% 0.92% 0.92% Allowance for loan losses to non- performing loans 80.41% 83.69% 87.66% 91.20% 91.75% Non-performing loans to total loans 1.15% 1.10% 1.05% 1.01% 1.01% Capitalization Shareholders' equity to total assets 9.64% 9.83% 9.76% 9.65% 9.47%
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