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
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