/EINPresswire.com/ -- ELMIRA, NY--(Marketwired - Oct 19, 2016) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

• Net income was $1,202,000 and $3,295,000 for the three and nine months ended September 30, 2016 compared to $1,057,000 and $3,086,000 for the same periods in 2015.
  
  
• Diluted earnings per share were $.36 per share and $.96 per share for the three and nine months ended September 30, 2016 compared to $.30 per share and $.87 per share for the same periods in 2015. 
  
  
• Return on average assets was .84% and .78% for the three and nine months ended September 30, 2016 compared to .73% for both the same periods in 2015.
  
  
• Return on average equity was 8.54% and 7.89% for the three and nine months ended September 30, 2016 compared to 7.60% and 7.43% for the same periods in 2015.
  
  

"We are pleased with the increase in core earnings, supported by strong loan origination volume and deposit growth," said Thomas M. Carr, President and CEO. Carr continued, "Year over year through nine months, we have increased our noninterest income by 12%, our net interest income by 8%, and have expanded our net interest margin by 6%."

Net Income

Net income totaled $3,295,000 for the nine months ended September 30, 2016, an increase of $209,000 or 7% from the $3,086,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $496,000, an increase in net interest income of $859,000, and a decrease in the provision for loan losses of $48,000, offset by an increase in noninterest expense of $898,000 and an increase in tax expense of $296,000.

Net income totaled $1,202,000 for the three months ended September 30, 2016, an increase of $145,000 or 14% from the $1,057,000 recorded for the same period in 2015. This increase was the net result of an increase in noninterest income of $177,000, a decrease in the provision for loan losses of $83,000, and an increase in net interest income of $359,000, offset by an increase in noninterest expense of $251,000 and an increase in tax expense of $223,000.

Basic and diluted earnings per share for the nine months ended September 30, 2016 were both $.96 per share compared to $.89 per share and $.87 per share for the same period in 2015. Basic and diluted earnings per share for the three months ended September 30, 2016 were both $.36 per share compared to $.31 per share and $.30 per share for the same period in 2015.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2016 was 3.20% compared to 3.03% for the same period in 2015. The yield on average earning assets was 4.06% for the nine months ended September 30, 2016 compared to 4.05% for the same period in 2015. The average cost of interest-bearing liabilities was 1.01% for the nine months ended September 30, 2016 compared to 1.19% for the same period in 2015.

The net interest margin for the three months ended September 30, 2016 was 3.24% compared to 2.97% for the same period in 2015. The average yield on earning assets was 4.04% for the three months ended September 30, 2016 compared to 4.00% for the same period in 2015. The average cost of interest-bearing liabilities was 0.96% for the three months ended September 30, 2016 compared to 1.20% for the same period in 2015.

Assets

Total assets increased $6.1 million or 1.1% to $567.5 million at September 30, 2016 compared to $561.3 million at December 31, 2015. Loans, including loans held for sale, increased 1.9% to $464.1 million at September 30, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $7.5 million from December 31, 2015 to September 30, 2016.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 1.12% at September 30, 2016 from 1.05% at December 31, 2015. Net loan charge-offs to average loans for the nine months ended September 30, 2016 of 0.04% decreased from 0.08% for the nine months ended September 30, 2015. The allowance for loan losses was 0.94% of total loans at September 30, 2016 and 0.92% of total loans at December 31, 2015.

Liabilities

Deposits total $463.4 million at September 30, 2016, an increase of $22.9 million or 5.2%. The $22.9 million increase consists of a $13.7 million increase in time deposits, a $5.1 million increase in noninterest-bearing accounts, a $2.1 million increase in savings accounts, and a $2.3 million increase in money market accounts, partially offset by a $296,000 decrease in interest bearing transaction accounts. Borrowed funds decreased by $17.5 million or 29.4%.

Shareholders' Equity

Shareholders' equity increased $1.0 million to $55.8 million at September 30, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.80 at September 30, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.69 for the three and nine months ended for both September 30, 2016 and 2015.

Elmira Savings Bank, with $567.5 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)			September 30,				December 31,
			2016				2015				% Change
ASSETS
Cash and due from banks			$	11,494			$	5,352			114.8	%
Federal funds sold and other short-term investments				100				102			-2.0	%
	Total cash and cash equivalents			11,594				5,454			112.6	%
Securities available for sale, at fair value				35,250				42,709			-17.5	%
Securities held to maturity - fair value $9,062 at September 30, 2016 and $9,010 at December 31, 2015				8,645				9,003			-4.0	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost				9,916				11,108			-10.7	%
Loans held for sale				4,485				3,630			23.6	%
Loans receivable				459,570				451,368			1.8	%
Less: Allowance for loan losses				4,319				4,148			4.1	%
	Net loans			455,251				447,220			1.8	%
Premises and equipment, net				12,166				12,130			0.3	%
Bank-owned life insurance				13,492				13,188			2.3	%
Accrued interest receivable				1,179				1,541			-23.5	%
Intangible assets, net				29				61			-52.5	%
Goodwill				12,320				12,320			0.0	%
Other assets				3,123				2,980			4.8	%
	Total assets		$	567,450			$	561,344			1.1	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits			$	463,414			$	440,472			5.2	%
Borrowings				42,000				59,525			-29.4	%
Other liabilities				6,244				6,576			-5.0	%
	Total liabilities			511,658				506,573			1.0	%
Shareholders' equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at September 30, 2016 and at December 31, 2015				9,700				9,700			0.0	%
Common stock, $1 par value; authorized 5,000,000 shares; 2,838,991 shares issued at September 30, 2016 and 2,820,745 shares issued at December 31, 2015				2,839				2,821			0.6	%
Additional paid-in capital				41,517				41,243			0.7	%
Retained earnings				4,222				3,488			21.0	%
Treasury stock, at cost - 98,118 shares at September 30, 2016 and December 31, 2015				(2,907	)			(2,907	)		0.0	%
Accumulated other comprehensive income				368				373			-1.3	%
	Total Elmira Savings Bank shareholders' equity			55,739				54,718			1.9	%
Noncontrolling interest				53				53			0.0	%
	Total shareholders' equity			55,792				54,771			1.9	%
	Total liabilities and shareholders' equity		$	567,450			$	561,344			1.1	%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
				Three Months Ended									Nine Months Ended
				September 30,									September 30,
(in thousands, except for per share data)				2016			2015			% Change			2016			2015			% Change
Interest and dividend income:
	Interest and fees on loans			$	4,832		$	4,624		4.5	%		$	14,305		$	13,656		4.8	%
	Interest and dividends on securities
		Taxable			231			331		-30.2	%			758			1,063		-28.7	%
		Non-taxable			203			245		-17.1	%			627			709		-11.6	%
		Total interest and dividend income			5,266			5,200		1.3	%			15,690			15,428		1.7	%
Interest expense:
	Interest on deposits				785			786		-0.1	%			2,282			2,254		1.2	%
	Interest on borrowings				270			562		-52.0	%			1,043			1,668		-37.5	%
		Total interest expense			1,055			1,348		-21.7	%			3,325			3,922		-15.2	%
Net interest income					4,211			3,852		9.3	%			12,365			11,506		7.5	%
Provision for loan losses					87			170		-48.8	%			312			360		-13.3	%
Net interest income after provision for loan losses					4,124			3,682		12.0	%			12,053			11,146		8.1	%
Noninterest income:
	Service fees				387			376		2.9	%			1,089			1,099		-0.9	%
	Gain on sale of loans held for sale				1,019			870		17.1	%			2,290			1,681		36.2	%
	Gain on sale of securities				-			-		0.0	%			180			284		-36.6	%
	Other service fees				190			174		9.2	%			556			532		4.5	%
	Earnings on bank-owned life insurance				99			98		1.0	%			304			298		2.0	%
	Other				21			21		0.0	%			86			115		-25.2	%
		Total noninterest income			1,716			1,539		11.5	%			4,505			4,009		12.4	%
Noninterest expense:
	Salaries and benefits				2,087			1,862		12.1	%			5,983			5,407		10.7	%
	Net occupancy				353			319		10.7	%			1,075			1,046		2.8	%
	Equipment				310			272		14.0	%			886			780		13.6	%
	Marketing and public relations				186			209		-11.0	%			579			635		-8.8	%
	Professional fees				148			225		-34.2	%			522			628		-16.9	%
	Other				892			838		6.4	%			2,669			2,320		15.0	%
		Total noninterest expense			3,976			3,725		6.7	%			11,714			10,816		8.3	%
Income before income taxes					1,864			1,496		24.6	%			4,844			4,339		11.6	%
Income taxes					662			439		50.8	%			1,549			1,253		23.6	%
Net income					1,202			1,057		13.7	%			3,295			3,086		6.8	%
Less: Net income attributable to noncontrolling interest					-			-		-				-			-		-
Net income attibutable to Elmira Savings Bank					1,202			1,057		13.7	%			3,295			3,086		6.8	%
Dividend on preferred stock					225			225		0.0	%			675			675		0.0	%
Income available to common shareholders				$	977		$	832		17.4	%		$	2,620		$	2,411		8.7	%
Basic earnings per share				$	0.36		$	0.31		16.1	%		$	0.96		$	0.89		7.9	%
Diluted earnings per share				$	0.36		$	0.30		20.0	%		$	0.96		$	0.87		10.3	%
Weighted average shares outstanding - basic					2,724,160			2,710,219		0.5	%			2,719,216			2,705,958		0.5	%
Weighted average shares outstanding - diluted					2,740,734			2,730,365		0.4	%			2,736,262			2,772,737		-1.3	%
Dividends per share				$	0.23		$	0.23		0.0	%		$	0.69		$	0.69		0.0	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)		For the Three Months Ended
		September 30, 2016									September 30, 2015
ASSETS:		Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans		$	464,996		$	4,832		4.13	%		$	440,467		$	4,624		4.17	%
Short-term investments			483			-		0.20				675			-		0.03
Securities			52,542			434		3.30				76,319			576		3.01
Total interest-earning assets			518,021			5,266		4.04				517,461			5,200		4.00
Noninterest-earning assets			53,323									57,683
TOTAL ASSETS		$	571,344								$	575,144
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits		$	394,097		$	785		0.79			$	371,492		$	786		0.84
Borrowings			42,249			270		2.50				73,196			562		3.00
Total interest-bearing liabilities			436,346			1,055		0.96				444,688			1,348		1.20
Noninterest-bearing liabilities			79,033									75,287
Shareholders' equity			55,965									55,169
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	571,344								$	575,144
Interest rate spread								3.08	%								2.80	%
Net interest income/margin					$	4,211		3.24	%					$	3,852		2.97	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)		For the Nine Months Ended
		September 30, 2016									September 30, 2015
ASSETS:		Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans		$	458,862		$	14,305		4.15	%		$	428,567		$	13,656		4.25	%
Short-term investments			518			1		0.19				1,072			-		0.03
Securities			55,116			1,384		3.35				77,665			1,772		3.04
Total interest-earning assets			514,496			15,690		4.06				507,304			15,428		4.05
Noninterest-earning assets			51,701									57,643
TOTAL ASSETS		$	566,197								$	564,947
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits		$	384,271		$	2,282		0.79			$	363,781		$	2,254		0.83
Borrowings			51,068			1,043		2.68				73,011			1,668		3.01
Total interest-bearing liabilities			435,339			3,325		1.01				436,792			3,922		1.19
Noninterest-bearing liabilities			75,195									72,604
Shareholders' equity			55,663									55,551
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	566,197								$	564,947
Interest rate spread								3.05	%								2.86	%
Net interest income/margin					$	12,365		3.20	%					$	11,506		3.03	%

								Quarter Ended
(Dollars in Thousands, Except Per Share Data)				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Operating Data
	Net income			$	1,202			$	1,057			$	1,036			$	1,036			$	1,057
	Net interest income				4,211				4,054				4,100				4,128				3,852
	Provision for loan losses				87				85				140				270				170
	Net security gains				-				-				180				-				-
	Non-interest income, ex. Net security gains				1,716				1,438				1,171				1,382				1,539
	Non-interest expense				3,976				3,891				3,847				3,777				3,725
Performance Statistics
	Net interest margin				3.24	%			3.17	%			3.19	%			3.19	%			2.97	%
	Annualized return on average assets				0.84	%			0.75	%			0.74	%			0.73	%			0.73	%
	Annualized return on average equity				8.54	%			7.65	%			7.52	%			7.46	%			7.60	%
	Annualized net loan charge-offs to avg loans				0.05	%			0.01	%			0.07	%			0.18	%			0.10	%
	Net charge-offs (recoveries)				53				14				74				204				117
	Efficiency ratio				67.1	%			70.8	%			70.6	%			68.5	%			69.1	%
Per Share Data
	Basic earnings per share			$	0.36			$	0.31			$	0.30			$	0.30			$	0.31
	Diluted earnings per share				0.36				0.30				0.30				0.30				0.30
	Dividend declared per share				0.23				0.23				0.23				0.23				0.23
	Book value				16.80				16.69				16.59				16.53				16.49
	Common stock price:
		High			21.50				20.10				20.55				21.13				20.81
		Low			18.85				18.06				16.83				18.41				19.05
		Close			19.91				19.66				18.01				19.88				19.20
	Weighted average common shares:
		Basic			2,724				2,718				2,716				2,712				2,710
		Fully diluted			2,741				2,735				2,733				2,731				2,730
	End-of-period common shares:
		Issued			2,839				2,832				2,828				2,821				2,821
		Treasury			98				98				98				98				98
Financial Condition Data:
General
	Total assets			$	567,450			$	574,721			$	560,020			$	561,344			$	566,228
	Loans, net				455,251				463,104				452,718				447,220				438,777
	Intangibles				12,349				12,360				12,371				12,381				12,396
	Total deposits				463,414				470,462				443,552				440,472				442,046
		Noninterest-bearing			72,102				70,803				65,165				66,964				72,293
		Savings			69,019				69,159				67,295				66,914				64,421
		NOW			86,787				121,875				105,094				87,083				85,136
		Money Market			25,715				25,172				25,281				23,382				19,912
		Time deposits			209,791				183,453				180,717				196,129				200,284
		Total interest-bearing deposits			391,312				399,659				378,387				373,508				369,753
	Shareholders' equity				55,792				55,382				55,039				54,771				54,657
Asset Quality
	Non-performing assets			$	5,345			$	5,622			$	5,328			$	4,943			$	4,545
	Non-performing assets to total assets				0.94	%			0.98	%			0.95	%			0.88	%			0.80	%
	Allowance for loan losses				4,319				4,285				4,214				4,148				4,082
	Allowance for loan losses to total loans				0.94	%			0.92	%			0.92	%			0.92	%			0.92	%
	Allowance for loan losses to non-performing loans				85.00	%			80.41	%			83.69	%			87.66	%			91.20	%
	Non-performing loans to total loans				1.12	%			1.15	%			1.10	%			1.05	%			1.01	%
Capitalization
	Shareholders' equity to total assets				9.83	%			9.64	%			9.83	%			9.76	%			9.65	%