ELMIRA, NY -- (Marketwired) -- 10/19/16 -- 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
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest 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
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest 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%
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
