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