Elmira Savings Bank Reports First Quarter Earnings
/EINPresswire.com/ -- ELMIRA, NY -- (Marketwired) -- 04/26/16 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,036,000 for the three months ended March 31, 2016 compared to $1,010,000 for the same period in 2015.
- Diluted earnings per share were $.30 per share for the three months ended March 31, 2016 compared to $.28 per share for the same period in 2015.
- Return on average assets was .74% for the three months ended March 31, 2016 and for the same period in 2015.
- Return on average equity was 7.52% for the three months ended March 31, 2016 compared to 7.29% for the same period in 2015.
"We are pleased with the year-over-year improvement in first quarter earnings, due in part to an increase in our net interest margin," said Thomas M. Carr, President and CEO. Carr continued, "We also experienced a 29% increase in residential mortgage originations resulting in an increase of $168,000 in gain on sale of mortgages from last year."
Net Income
Net income totaled $1,036,000 for the three months ended March 31, 2016, an increase of $26,000 or 2.6% from the $1,010,000 recorded for the same period in 2015. This increase was the net result of an increase in net interest income of $275,000, an increase in noninterest income of $116,000, and a reduction in tax expense of $3,000, offset by an increase in noninterest expense of $278,000 and an increase in the provision for loan losses of $90,000.
Basic and diluted earnings per share for the three months ended March 31, 2016 were both $.30 per share compared to $.29 per share and $.28 per share for the same period in 2015.
Net Interest Margin
The net interest margin for the three months ended March 31, 2016 was 3.19% compared to 3.07% for the first quarter of 2015. The yield on average earning assets was 4.07% for the three months ended March 31, 2016 compared to 4.09% for the same period in 2015. The average cost of interest-bearing liabilities was 1.04% for the three months ended March 31, 2016 compared to 1.19% for the three months ended March 31, 2015.
Assets
Total assets decreased $1.3 million or 0.2% to $560.0 million at March 31, 2016 compared to $561.3 million at December 31, 2015. Loans receivable increased 1.2% to $456.9 million at March 31, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $5.2 million from December 31, 2015 to March 31, 2016.
Nonperforming Loans
Our nonperforming loans to total loans ratio was 1.10% at March 31, 2016 and 1.05% at December 31, 2015. Net loan charge-offs to average loans for the three months ended March 31, 2016 of .07% increased from .02% for the three months ended March 31, 2015. The allowance for loan losses was .92% of total loans at March 31, 2016 and .92% at December 31, 2015.
Liabilities
Deposits totaled $443.6 million at March 31, 2016, an increase of $3.1 million or .7% from the December 31, 2015 total of $440.5 million. Borrowed funds decreased by $3.2 million or 5.4%.
Shareholders' Equity
Shareholders' equity increased $268,000 to $55.0 million at March 31, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.59 at March 31, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2016 and 2015.
Elmira Savings Bank, with $560.0 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) March 31, December 31,
------------------------------------
2016 2015 % Change
------------ ------------ --------
ASSETS
Cash and due from banks $ 5,631 $ 5,352 5.2%
Federal funds sold and other short-
term investments 101 102 -1.0%
------------ ------------ --------
Total cash and cash equivalents 5,732 5,454 5.1%
Securities available for sale, at fair
value 37,492 42,709 -12.2%
Securities held to maturity - fair
value $9,201 at March 31, 2016 and
$9,010 at December 31, 2015 8,910 9,003 -1.0%
Federal Reserve and Federal Home Loan
Bank (FHLB) stock, at cost 10,879 11,108 -2.1%
Loans held for sale 2,033 3,630 -44.0%
Loans receivable 456,932 451,368 1.2%
Less: Allowance for loan losses 4,214 4,148 1.6%
------------ ------------ --------
Net loans 452,718 447,220 1.2%
Premises and equipment, net 12,086 12,130 -0.4%
Bank-owned life insurance 13,285 13,188 0.7%
Accrued interest receivable 1,610 1,541 4.5%
Intangible assets, net 51 61 -16.4%
Goodwill 12,320 12,320 0.0%
Other assets 2,904 2,980 -2.6%
------------ ------------ --------
Total assets $ 560,020 $ 561,344 -0.2%
============ ============ ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 443,552 $ 440,472 0.7%
Borrowings 56,300 59,525 -5.4%
Other liabilities 5,129 6,576 -22.0%
------------ ------------ --------
Total liabilities 504,981 506,573 -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, 2016 and at
December 31, 2015 9,700 9,700 0.0%
Common stock, $1 par value; authorized
5,000,000 shares; 2,827,804 shares
issued at March 31, 2016 and
2,820,745 shares issued at December
31, 2015 2,828 2,821 0.2%
Additional paid-in capital 41,328 41,243 0.2%
Retained earnings 3,672 3,488 5.3%
Treasury stock, at cost - 98,118
shares at March 31, 2016 and at
December 31, 2015 (2,907) (2,907) 0.0%
Accumulated other comprehensive income 365 373 -2.1%
------------ ------------ --------
Total Elmira Savings Bank
shareholders' equity 54,986 54,718 0.5%
Noncontrolling interest 53 53 0.0%
------------ ------------ --------
Total shareholders' equity 55,039 54,771 0.5%
------------ ------------ --------
Total liabilities and shareholders'
equity $ 560,020 $ 561,344 -0.2%
============ ============ ========
ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Three Months Ended
March 31,
------------------------------------
(in thousands, except for per share
data) 2016 2015 % Change
------------- ------------- --------
Interest and dividend income:
Interest and fees on loans $ 4,729 $ 4,462 6.0%
Interest and dividends on securities
Taxable 285 402 -29.1%
Non-taxable 219 231 -5.2%
------------- ------------- --------
Total interest and dividend income 5,233 5,095 2.7%
------------- ------------- --------
Interest expense:
Interest on deposits 734 727 1.0%
Interest on borrowings 399 543 -26.5%
------------- ------------- --------
Total interest expense 1,133 1,270 -10.8%
------------- ------------- --------
Net interest income 4,100 3,825 7.2%
Provision for loan losses 140 50 180.0%
------------- ------------- --------
Net interest income after provision
for loan losses 3,960 3,775 4.9%
------------- ------------- --------
Noninterest income:
Service fees 348 355 -2.0%
Gain on sale of loans held for sale 522 354 47.5%
Gain on sale of securities 180 204 -11.8%
Other service fees 180 169 6.5%
Earnings on bank-owned life
insurance 97 94 3.2%
Other 24 59 -59.3%
------------- ------------- --------
Total noninterest income 1,351 1,235 9.4%
------------- ------------- --------
Noninterest expense:
Salaries and benefits 1,927 1,794 7.4%
Net occupancy 369 392 -5.9%
Equipment 275 254 8.3%
Marketing and public relations 201 211 -4.7%
Professional fees 180 180 0.0%
Other 895 738 21.3%
------------- ------------- --------
Total noninterest expense 3,847 3,569 7.8%
------------- ------------- --------
Income before income taxes 1,464 1,441 1.6%
Income taxes 428 431 -0.7%
------------- ------------- --------
Net income 1,036 1,010 2.6%
Less: Net income attributable to
noncontrolling interest - - -
------------- ------------- --------
Net income attibutable to Elmira
Savings Bank 1,036 1,010 2.6%
Dividend on preferred stock 225 225 0.0%
------------- ------------- --------
Income available to common
shareholders $ 811 $ 785 3.3%
============= ============= ========
Basic earnings per share $ 0.30 $ 0.29 3.4%
============= ============= ========
Diluted earnings per share $ 0.30 $ 0.28 7.1%
============= ============= ========
Weighted average shares outstanding -
basic 2,715,915 2,700,542 0.6%
============= ============= ========
Weighted average shares outstanding -
diluted 2,733,014 2,811,600 -2.8%
============= ============= ========
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, 2016 March 31, 2015
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
-------- -------- ------- -------- -------- -------
Loans $453,828 $ 4,729 4.17% $417,480 $ 4,462 4.29%
Short-term investments 381 - 0.16 1,510 1 0.03
Securities 59,630 504 3.38 81,785 632 3.10
-------- -------- ------- -------- -------- -------
Total interest-earning
assets 513,839 5,233 4.07 500,775 5,095 4.09
-------- -------- ------- -------- -------- -------
Noninterest-earning
assets 48,009 54,161
-------- --------
TOTAL ASSETS $561,848 $554,936
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits $374,605 $ 734 0.79 $358,257 $ 727 0.82
Borrowings 58,997 399 2.68 71,822 543 3.02
-------- -------- ------- -------- -------- -------
Total interest-bearing
liabilities 433,602 1,133 1.04 430,079 1,270 1.19
-------- -------- ------- -------- -------- -------
Noninterest-bearing
liabilities 72,848 68,726
Shareholders' equity 55,398 56,131
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $561,848 $554,936
======== ========
Interest rate spread 3.03% 2.90%
======= =======
Net interest
income/margin $ 4,100 3.19% $ 3,825 3.07%
======== ======= ======== =======
Quarter Ended
(Dollars in
Thousands, Except
Per Share Data) 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015
--------- ---------- --------- --------- ---------
Operating Data
Net income $ 1,036 $ 1,036 $ 1,057 $ 1,019 $ 1,010
Net interest
income 4,100 4,128 3,852 3,829 3,825
Provision for loan
losses 140 270 170 140 50
Net security gains 180 - - 80 204
Non-interest
income, ex. Net
security gains 1,171 1,382 1,539 1,155 1,031
Non-interest
expense 3,847 3,777 3,725 3,522 3,569
Performance
Statistics
Net interest
margin 3.19% 3.19% 2.97% 3.04% 3.07%
Annualized return
on average assets 0.74% 0.73% 0.73% 0.72% 0.74%
Annualized return
on average equity 7.52% 7.46% 7.60% 7.39% 7.29%
Annualized net
loan charge-offs
to avg loans 0.07% 0.18% 0.10% 0.11% 0.02%
Net charge-offs
(recoveries) 74 204 117 114 21
Efficiency ratio 70.6% 68.5% 69.1% 69.5% 70.5%
Per Share Data
Basic earnings per
share $ 0.30 $ 0.30 $ 0.31 $ 0.29 $ 0.29
Diluted earnings
per share 0.30 0.30 0.30 0.29 0.28
Dividend declared
per share 0.23 0.23 0.23 0.23 0.23
Book value 16.59 16.53 16.49 16.34 16.96
Common stock
price:
High 20.55 21.13 20.81 20.82 23.00
Low 16.83 18.41 19.05 19.43 19.99
Close 18.01 19.88 19.20 20.09 20.40
Weighted average
common shares:
Basic 2,716 2,712 2,710 2,707 2,701
Fully diluted 2,733 2,731 2,730 2,776 2,812
End-of-period
common shares:
Issued 2,828 2,821 2,821 2,821 2,813
Treasury 98 98 98 98 98
Financial Condition
Data:
General
Total assets $ 560,020 $ 561,344 $ 566,228 $ 572,890 $ 562,185
Loans, net 452,718 447,220 438,777 431,993 416,235
Intangibles 12,371 12,381 12,396 12,412 12,428
Total deposits 443,552 440,472 442,046 437,663 426,075
Noninterest-
bearing 65,165 66,964 72,293 68,707 64,442
Savings 67,295 66,914 64,421 64,758 63,776
NOW 105,094 87,083 85,136 86,835 78,169
Money Market 25,281 23,382 19,912 20,678 22,112
Time deposits 180,717 196,129 200,284 196,685 197,576
Total interest-
bearing
deposits 378,387 373,508 369,753 368,956 361,633
Shareholders'
equity 55,039 54,771 54,657 54,233 55,818
Asset Quality
Non-performing
assets $ 5,328 $ 4,943 $ 4,545 $ 4,430 $ 4,790
Non-performing
assets to total
assets 0.95% 0.88% 0.80% 0.77% 0.85%
Allowance for loan
losses 4,214 4,148 4,082 4,028 4,002
Allowance for loan
losses to total
loans 0.92% 0.92% 0.92% 0.92% 0.95%
Allowance for loan
losses to non-
performing loans 83.69% 87.66% 91.20% 91.75% 83.55%
Non-performing
loans to total
loans 1.10% 1.05% 1.01% 1.01% 1.14%
Capitalization
Shareholders'
equity to total
assets 9.83% 9.76% 9.65% 9.47% 9.93%
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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