Elmira Savings Bank Reports 2015 Earnings
/EINPresswire.com/ -- ELMIRA, NY -- (Marketwired) -- 01/27/16 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,036,000 and $4,122,000 for the three and twelve months ended December 31, 2015 compared to $1,031,000 and $3,665,000 for the same periods in 2014.
- Diluted earnings per share were $.30 per share and $1.17 per share for the three and twelve months ended December 31, 2015 compared to $.29 per share and $.99 per share for the same periods in 2014.
- Return on average assets (annualized) was .73% for both the three and twelve months ended December 31, 2015 compared to .76% and .70% for the same periods in 2014.
- Return on average equity (annualized) was 7.46% and 7.43% for the three and twelve months ended December 31, 2015 compared to 7.34% and 6.60% for the same periods in 2014.
Net Income
Net income totaled $1,036,000 for the three months ended December 31, 2015, an increase of $5,000 or 0.5% from the $1,031,000 recorded for the same period in 2014. This increase was the net result of an increase in noninterest income of $343,000, an increase in net interest income of $110,000 and a decrease in income tax expense of $54,000, offset by an increase in the provision for loan losses of $130,000 and an increase in noninterest expense of $371,000.
Net income totaled $4,122,000 for the twelve months ended December 31, 2015, an increase of $457,000 or 12.5% from the $3,665,000 of net income recorded for the same period in 2014. This increase was the net result of an increase in noninterest income of $633,000 and an increase in net interest income of $222,000, offset by an increase in the provision for loan losses of $223,000, an increase in noninterest expense of $90,000, and an increase in income tax expense of $85,000.
"The year 2015 was a successful one for the company. We expanded into Watkins Glen with our 13th full-service branch. We achieved a 12% increase in earnings, supported by 8% growth in the loan portfolio and 4% growth in the deposit base," said Thomas M. Carr, President and CEO. Carr continued, "We also had significant accomplishments in improving our internal processes and systems, with an emphasis on becoming more focused on organic growth."
Basic and diluted earnings per share for the twelve months ended December 31, 2015 were $1.19 per share and $1.17 per share compared to $1.03 per share and $.99 per share for the same periods in 2014. Both basic and diluted earnings per share for the three months ended December 31, 2015 were $.30 per share compared to $.30 per share and $.29 per share for the same periods in 2014.
Net Interest Margin
The net interest margin for the twelve months ended December 31, 2015 was 3.07% compared to 3.23% for the same period in 2014. The yield on average earning assets was 4.06% for the twelve months ended December 31, 2015 compared to 4.24% for the same period in 2014. The average cost of interest-bearing liabilities was 1.16% for the twelve months ended December 31, 2015 compared to 1.21% for the same period in 2014.
The net interest margin for the three months ended December 31, 2015 was 3.19% compared to 3.24% for the same period in 2014. The average yield on earning assets was 4.09% for the three months ended December 31, 2015 compared to 4.23% for the same period in 2014. The average cost of interest-bearing liabilities was 1.07% for the three months ended December 31, 2015 compared to 1.18% for the same period in 2014.
Assets
Total assets increased $15.4 million or 2.8% to $561.3 million at December 31, 2015 compared to $546.0 million at December 31, 2014. Loans receivable increased 8.2% to $451.4 million at December 31, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $22.9 million from December 31, 2014 to December 31, 2015.
Nonperforming Loans
Our nonperforming loans to total loans ratio has decreased to 1.05% at December 31, 2015 from 1.13% at December 31, 2014. Net loan charge-offs to average loans for the twelve months ended December 31, 2015 of 0.11% increased from 0.07% for the twelve months ended December 31, 2014. The allowance for loan losses was 0.92% of total loans at December 31, 2015 and 0.95% of total loans at December 31, 2014.
Liabilities
Deposits total $440.5 million at December 31, 2015, an increase of $17.9 million or 4.2%. The $17.9 million increase consists of an $8.2 million increase in interest-bearing transaction accounts, a $4.9 million increase in noninterest-bearing accounts, a $2.9 million increase in money market accounts, a $1.6 million increase in savings accounts, and a $.3 million increase in time deposits. Borrowed funds decreased by $2.5 million or 4.0%.
Shareholders' Equity
Shareholders' equity decreased $0.7 million to $54.8 million at December 31, 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 $16.53 at December 31, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 and $0.92 for the three and twelve months ended for both December 31, 2015 and 2014.
Elmira Savings Bank, with $561.3 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 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) December 31, December 31,
--------------------------------------
2015 2014 % Change
------------- ------------- --------
ASSETS
Cash and due from banks $ 5,352 $ 7,959 -32.8%
Federal funds sold and other short-
term investments 102 606 -83.2%
------------- ------------- --------
Total cash and cash equivalents 5,454 8,565 -36.3%
Securities available for sale, at
fair value 42,709 65,624 -34.9%
Securities held to maturity - fair
value $9,010 at December 31, 2015,
and $7,641 at December 31, 2014 9,003 7,389 21.8%
Federal Reserve and Federal Home
Loan Bank (FHLB) stock, at cost 11,108 11,182 -0.7%
Loans held for sale 3,630 787 361.2%
Loans receivable 451,368 417,359 8.1%
Less: Allowance for loan losses 4,148 3,974 4.4%
------------- ------------- --------
Net loans 447,220 413,385 8.2%
Premises and equipment, net 12,130 9,475 28.0%
Bank-owned life insurance 13,188 12,790 3.1%
Accrued interest receivable 1,541 1,566 -1.6%
Intangible assets, net 61 125 -51.2%
Goodwill 12,320 12,320 -
Other assets 2,980 2,761 7.9%
------------- ------------- --------
Total assets $ 561,344 $ 545,969 2.8%
============= ============= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 440,472 $ 422,561 4.2%
Borrowings 59,525 62,000 -4.0%
Other liabilities 6,576 5,915 11.2%
------------- ------------- --------
Total liabilities 506,573 490,476 3.3%
------------- ------------- --------
Shareholders' equity:
Preferred stock, $1,000 liquidation
value per issued share; 5,000,000
shares authorized; 10,000 shares
issued at December 31, 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 December
31, 2015 and 2,809,364 shares
issued at December 31, 2014 2,821 2,809 0.4%
Additional paid-in capital 41,243 42,365 -2.6%
Retained earnings 3,488 2,769 26.0%
Treasury stock, at cost - 98,118
shares at December 31, 2015 and
104,418 shares at December 31, 2014 (2,907) (3,053) -4.8%
Accumulated other comprehensive
income 373 849 -56.1%
------------- ------------- --------
Total Elmira Savings Bank
shareholders' equity 54,718 55,439 -1.3%
Noncontrolling interest 53 54 -1.9%
------------- ------------- --------
Total shareholders' equity 54,771 55,493 -1.3%
------------- ------------- --------
Total liabilities and
shareholders' equity $ 561,344 $ 545,969 2.8%
============= ============= ========
ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
(in thousands,
except for per % %
share data) 2015 2014 Change 2015 2014 Change
---------- ---------- ------ ---------- ---------- ------
Interest and
dividend
income:
Interest and
fees on loans $ 4,762 $ 4,598 3.6% $ 18,418 $ 17,709 4.0%
Interest and
dividends on
securities
Taxable 304 390 -22.1% 1,367 1,659 -17.6%
Non-taxable 240 270 -11.1% 949 899 5.6%
---------- ---------- ------ ---------- ---------- ------
Total
interest
and
dividend
income 5,306 5,258 0.9% 20,734 20,267 2.3%
---------- ---------- ------ ---------- ---------- ------
Interest
expense:
Interest on
deposits 762 746 2.1% 3,016 2,986 1.0%
Interest on
borrowings 416 494 -15.8% 2,084 1,869 11.5%
---------- ---------- ------ ---------- ---------- ------
Total
interest
expense 1,178 1,240 -5.0% 5,100 4,855 5.0%
---------- ---------- ------ ---------- ---------- ------
Net interest
income 4,128 4,018 2.7% 15,634 15,412 1.4%
Provision for
loan losses 270 140 92.9% 630 407 54.8%
---------- ---------- ------ ---------- ---------- ------
Net interest
income after
provision for
loan losses 3,858 3,878 -0.5% 15,004 15,005 0.0%
---------- ---------- ------ ---------- ---------- ------
Noninterest
income:
Service fees 372 363 2.5% 1,471 1,437 2.4%
Gain on sale
of loans held
for sale 701 357 96.4% 2,382 1,633 45.9%
Gain on sale
of securities - - - 284 422 -32.7%
Other service
fees 184 177 4.0% 716 687 4.2%
Earnings on
bank-owned
life
insurance 100 96 4.2% 398 404 -1.5%
Other 25 46 -45.7% 140 175 -20.0%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
income 1,382 1,039 33.0% 5,391 4,758 13.3%
---------- ---------- ------ ---------- ---------- ------
Noninterest
expense:
Salaries and
benefits 1,917 1,609 19.1% 7,324 7,692 -4.8%
Net occupancy 337 352 -4.3% 1,383 1,416 -2.3%
Equipment 281 249 12.9% 1,061 1,012 4.8%
Marketing and
public
relations 197 270 -27.0% 832 884 -5.9%
Professional
fees 145 167 -13.2% 773 690 12.0%
Other 900 759 18.6% 3,220 2,809 14.6%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
expense 3,777 3,406 10.9% 14,593 14,503 0.6%
---------- ---------- ------ ---------- ---------- ------
Income before
income taxes 1,463 1,511 -3.2% 5,802 5,260 10.3%
Income taxes 422 476 -11.3% 1,675 1,590 5.3%
---------- ---------- ------ ---------- ---------- ------
Net income 1,041 1,035 0.6% 4,127 3,670 12.5%
Less: Net income
attributable to
noncontrolling
interest 5 5 - 5 5 -
---------- ---------- ------ ---------- ---------- ------
Net income
attibutable to
Elmira Savings
Bank 1,036 1,031 0.5% 4,122 3,665 12.5%
Dividend on
preferred stock 225 225 0.0% 900 900 0.0%
---------- ---------- ------ ---------- ---------- ------
Income available
to common
shareholders $ 811 $ 805 0.7% $ 3,222 $ 2,765 16.5%
========== ========== ====== ========== ========== ======
Basic earnings
per share $ 0.30 $ 0.30 0.0% $ 1.19 $ 1.03 15.5%
========== ========== ====== ========== ========== ======
Diluted earnings
per share $ 0.30 $ 0.29 3.4% $ 1.17 $ 0.99 18.2%
========== ========== ====== ========== ========== ======
Weighted average
shares
outstanding -
basic 2,712,052 2,692,833 0.7% 2,707,491 2,677,252 1.1%
========== ========== ====== ========== ========== ======
Weighted average
shares
outstanding -
diluted 2,731,078 2,807,591 -2.7% 2,762,332 2,799,670 -1.3%
========== ========== ====== ========== ========== ======
Dividends per
share $ 0.23 $ 0.23 0.0% $ 0.92 $ 0.92 0.0%
========== ========== ====== ========== ========== ======
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in
Thousands) For the Twelve Months Ended
----------------------------------------------------------
December 31, 2015 December 31, 2014
---------------------------- ----------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
--------- --------- -------- --------- --------- --------
Loans $ 433,397 $ 18,418 4.24% $ 398,416 $ 17,709 4.44%
Short-term
investments 847 - 0.03 1,069 1 0.02
Securities 75,228 2,316 3.08 77,349 2,557 3.31
--------- --------- -------- --------- --------- --------
Total interest-
earning assets 509,472 20,734 4.06 476,834 20,267 4.24
--------- --------- -------- --------- --------- --------
Noninterest-
earning assets 54,990 44,418
--------- ---------
TOTAL ASSETS $ 564,462 $ 521,252
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits $ 365,142 $ 3,016 0.83 $ 339,720 $ 2,986 0.88
Borrowings 70,773 2,084 2.90 60,263 1,869 3.06
--------- --------- -------- --------- --------- --------
Total interest-
bearing
liabilities 435,915 5,100 1.16 399,983 4,855 1.21
--------- --------- -------- --------- --------- --------
Noninterest-
bearing
liabilities 73,103 65,727
Shareholders'
equity 55,444 55,542
--------- ---------
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY $ 564,462 $ 521,252
========= =========
Interest rate
spread 2.90% 3.03%
======== ========
Net interest
income/margin $ 15,634 3.07% $ 15,412 3.23%
========= ======== ========= ========
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in
Thousands) For the Three Months Ended
----------------------------------------------------------
December 31, 2015 December 31, 2014
---------------------------- ----------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
--------- --------- -------- --------- --------- --------
Loans $ 447,731 $ 4,762 4.23% $ 413,733 $ 4,598 4.42%
Short-term
investments 177 - 0.10 1,318 - 0.02
Securities 67,996 544 3.19 79,810 660 3.30
--------- --------- -------- --------- --------- --------
Total interest-
earning assets 515,904 5,306 4.09 494,861 5,258 4.23
--------- --------- -------- --------- --------- --------
Noninterest-
earning assets 47,119 45,947
--------- ---------
TOTAL ASSETS $ 563,023 $ 540,808
========= =========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits $ 369,180 $ 762 0.82 $ 348,115 $ 746 0.85
Borrowings 64,134 416 2.54 68,105 494 2.85
--------- --------- -------- --------- --------- --------
Total interest-
bearing
liabilities 433,314 1,178 1.07 416,220 1,240 1.18
--------- --------- -------- --------- --------- --------
Noninterest-
bearing
liabilities 74,581 68,841
Shareholders'
equity 55,128 55,747
--------- ---------
TOTAL
LIABILITIES AND
SHAREHOLDERS'
EQUITY $ 563,023 $ 540,808
========= =========
Interest rate
spread 3.02% 3.05%
======== ========
Net interest
income/margin $ 4,128 3.19% $ 4,018 3.24%
========= ======== ========= ========
Quarter Ended
(Dollars in
Thousands,
Except Per
Share Data) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014
---------- ---------- ---------- ---------- ----------
Operating Data
Net income $ 1,036 $ 1,057 $ 1,019 $ 1,010 $ 1,031
Net interest
income 4,128 3,852 3,829 3,825 4,018
Provision for
loan losses 270 170 140 50 140
Net security
gains - - 80 204 -
Non-interest
income, ex.
Net security
gains 1,382 1,539 1,155 1,031 1,039
Non-interest
expense 3,777 3,725 3,522 3,569 3,406
Performance
Statistics
Net interest
margin 3.19% 2.97% 3.04% 3.07% 3.24%
Annualized
return on
average
assets 0.73% 0.73% 0.72% 0.74% 0.76%
Annualized
return on
average
equity 7.46% 7.60% 7.39% 7.29% 7.37%
Annualized net
loan charge-
offs to avg
loans 0.18% 0.10% 0.11% 0.02% 0.09%
Net charge-
offs
(recoveries) 204 117 114 21 94
Efficiency
ratio 68.5% 69.1% 69.5% 70.5% 67.4%
Per Share Data
Basic earnings
per share $ 0.30 $ 0.31 $ 0.29 $ 0.29 $ 0.30
Diluted
earnings per
share 0.30 0.30 0.29 0.28 0.29
Dividend
declared per
share 0.23 0.23 0.23 0.23 0.23
Book value 16.53 16.49 16.34 16.96 16.91
Common stock
price:
High 21.13 20.81 20.82 23.00 23.00
Low 18.41 19.05 19.43 19.99 20.50
Close 19.88 19.20 20.09 20.40 23.00
Weighted
average
common
shares:
Basic 2,712 2,710 2,707 2,701 2,693
Fully
diluted 2,731 2,730 2,776 2,812 2,808
End-of-period
common
shares:
Issued 2,821 2,821 2,821 2,813 2,809
Treasury 98 98 98 98 104
Financial
Condition Data:
General
Total assets $ 561,344 $ 566,228 $ 572,890 $ 562,185 $ 545,969
Loans, net 447,220 438,777 431,993 416,235 413,385
Intangibles 12,381 12,396 12,412 12,428 12,445
Total deposits 440,472 442,046 437,663 426,075 422,561
Noninterest-
bearing 66,964 72,293 68,707 64,442 62,019
Savings 66,914 64,421 64,758 63,776 65,287
NOW 87,083 85,136 86,835 78,169 78,920
Money Market 23,382 19,912 20,678 22,112 20,512
Time
deposits 196,129 200,284 196,685 197,576 195,823
Total
interest-
bearing
deposits 373,508 369,753 368,956 361,633 360,542
Shareholders'
equity 54,771 54,657 54,233 55,818 55,493
Asset Quality
Non-performing
assets $ 4,943 $ 4,545 $ 4,430 $ 4,790 $ 4,699
Non-performing
assets to
total assets 0.88% 0.80% 0.77% 0.85% 0.86%
Allowance for
loan losses 4,148 4,082 4,028 4,002 3,974
Allowance for
loan losses
to total
loans 0.92% 0.92% 0.92% 0.95% 0.95%
Allowance for
loan losses
to non-
performing
loans 87.66% 91.20% 91.75% 83.55% 84.57%
Non-performing
loans to
total loans 1.05% 1.01% 1.01% 1.14% 1.13%
Capitalization
Shareholders'
equity to
total assets 9.76% 9.65% 9.47% 9.93% 10.16%
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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