CST: 30/09/2016 13:32:02   

Elmira Savings Bank Reports 2015 Earnings

246 Days ago

ELMIRA, NY--(Marketwired - Jan 27, 2016) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,036,000 and $4,122,000 for the three and twelve months ended December 31, 2015 compared to $1,031,000 and $3,665,000 for the same periods in 2014.

  • Diluted earnings per share were $.30 per share and $1.17 per share for the three and twelve months ended December 31, 2015 compared to $.29 per share and $.99 per share for the same periods in 2014. 

  • Return on average assets (annualized) was .73% for both the three and twelve months ended December 31, 2015 compared to .76% and .70% for the same periods in 2014.

  • Return on average equity (annualized) was 7.46% and 7.43% for the three and twelve months ended December 31, 2015 compared to 7.34% and 6.60% for the same periods in 2014.

Net Income

Net income totaled $1,036,000 for the three months ended December 31, 2015, an increase of $5,000 or 0.5% from the $1,031,000 recorded for the same period in 2014. This increase was the net result of an increase in noninterest income of $343,000, an increase in net interest income of $110,000 and a decrease in income tax expense of $54,000, offset by an increase in the provision for loan losses of $130,000 and an increase in noninterest expense of $371,000.

Net income totaled $4,122,000 for the twelve months ended December 31, 2015, an increase of $457,000 or 12.5% from the $3,665,000 of net income recorded for the same period in 2014. This increase was the net result of an increase in noninterest income of $633,000 and an increase in net interest income of $222,000, offset by an increase in the provision for loan losses of $223,000, an increase in noninterest expense of $90,000, and an increase in income tax expense of $85,000.

"The year 2015 was a successful one for the company. We expanded into Watkins Glen with our 13th full-service branch. We achieved a 12% increase in earnings, supported by 8% growth in the loan portfolio and 4% growth in the deposit base," said Thomas M. Carr, President and CEO. Carr continued, "We also had significant accomplishments in improving our internal processes and systems, with an emphasis on becoming more focused on organic growth."

Basic and diluted earnings per share for the twelve months ended December 31, 2015 were $1.19 per share and $1.17 per share compared to $1.03 per share and $.99 per share for the same periods in 2014. Both basic and diluted earnings per share for the three months ended December 31, 2015 were $.30 per share compared to $.30 per share and $.29 per share for the same periods in 2014.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2015 was 3.07% compared to 3.23% for the same period in 2014. The yield on average earning assets was 4.06% for the twelve months ended December 31, 2015 compared to 4.24% for the same period in 2014. The average cost of interest-bearing liabilities was 1.16% for the twelve months ended December 31, 2015 compared to 1.21% for the same period in 2014.

The net interest margin for the three months ended December 31, 2015 was 3.19% compared to 3.24% for the same period in 2014. The average yield on earning assets was 4.09% for the three months ended December 31, 2015 compared to 4.23% for the same period in 2014. The average cost of interest-bearing liabilities was 1.07% for the three months ended December 31, 2015 compared to 1.18% for the same period in 2014.

Assets

Total assets increased $15.4 million or 2.8% to $561.3 million at December 31, 2015 compared to $546.0 million at December 31, 2014. Loans receivable increased 8.2% to $451.4 million at December 31, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $22.9 million from December 31, 2014 to December 31, 2015.

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to 1.05% at December 31, 2015 from 1.13% at December 31, 2014. Net loan charge-offs to average loans for the twelve months ended December 31, 2015 of 0.11% increased from 0.07% for the twelve months ended December 31, 2014. The allowance for loan losses was 0.92% of total loans at December 31, 2015 and 0.95% of total loans at December 31, 2014.

Liabilities

Deposits total $440.5 million at December 31, 2015, an increase of $17.9 million or 4.2%. The $17.9 million increase consists of an $8.2 million increase in interest-bearing transaction accounts, a $4.9 million increase in noninterest-bearing accounts, a $2.9 million increase in money market accounts, a $1.6 million increase in savings accounts, and a $.3 million increase in time deposits. Borrowed funds decreased by $2.5 million or 4.0%.

Shareholders' Equity

Shareholders' equity decreased $0.7 million to $54.8 million at December 31, 2015 compared to December 31, 2014. The decrease is primarily the result of the repurchase of a warrant in May 2015 that had been issued to the United States Treasury Department at a purchase price of $1.5 million. The current level of shareholders' equity equates to a book value per share of $16.53 at December 31, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 and $0.92 for the three and twelve months ended for both December 31, 2015 and 2014.

Elmira Savings Bank, with $561.3 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)   December 31,     December 31,        
    2015     2014     % Change  
ASSETS                      
                       
Cash and due from banks   $ 5,352     $ 7,959     -32.8 %
Federal funds sold and other short-term investments     102       606     -83.2 %
  Total cash and cash equivalents     5,454       8,565     -36.3 %
                       
Securities available for sale, at fair value     42,709       65,624     -34.9 %
Securities held to maturity - fair value $9,010 at December 31, 2015, and $7,641 at December 31, 2014    
9,003
     
7,389
   
21.8
%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     11,108       11,182     -0.7 %
                       
Loans held for sale     3,630       787     361.2 %
                       
Loans receivable     451,368       417,359     8.1 %
Less: Allowance for loan losses     4,148       3,974     4.4 %
  Net loans     447,220       413,385     8.2 %
                       
Premises and equipment, net     12,130       9,475     28.0 %
Bank-owned life insurance     13,188       12,790     3.1 %
Accrued interest receivable     1,541       1,566     -1.6 %
Intangible assets, net     61       125     -51.2 %
Goodwill     12,320       12,320     -  
Other assets     2,980       2,761     7.9 %
  Total assets   $ 561,344     $ 545,969     2.8 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 440,472     $ 422,561     4.2 %
Borrowings     59,525       62,000     -4.0 %
Other liabilities     6,576       5,915     11.2 %
  Total liabilities     506,573       490,476     3.3 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at December 31, 2015 and at December 31, 2014    
9,700
     
9,700
   
-
 
Common stock, $1 par value; authorized 5,000,000 shares; 2,820,745 shares issued at December 31, 2015 and 2,809,364 shares issued at December 31, 2014    
2,821
     
2,809
   
0.4
%
Additional paid-in capital     41,243       42,365     -2.6 %
Retained earnings     3,488       2,769     26.0 %
Treasury stock, at cost - 98,118 shares at December 31, 2015 and 104,418 shares at December 31, 2014    
(2,907
)    
(3,053
)  
-4.8
%
Accumulated other comprehensive income     373       849     -56.1 %
  Total Elmira Savings Bank shareholders' equity     54,718       55,439     -1.3 %
Noncontrolling interest     53       54     -1.9 %
  Total shareholders' equity     54,771       55,493     -1.3 %
  Total liabilities and shareholders' equity   $ 561,344     $ 545,969     2.8 %
         
   
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
                             
    Three Months Ended     Twelve Months Ended    
    December 31,     December 31,    
(in thousands, except for per share data)   2015   2014   % Change     2015   2014   % Change  
                                     
Interest and dividend income:                                    
  Interest and fees on loans   $ 4,762   $ 4,598   3.6 %   $ 18,418   $ 17,709   4.0 %
  Interest and dividends on securities                                    
    Taxable     304     390   -22.1 %     1,367     1,659   -17.6 %
    Non-taxable     240     270   -11.1 %     949     899   5.6 %
    Total interest and dividend income     5,306     5,258   0.9 %     20,734     20,267   2.3 %
                                     
Interest expense:                                    
  Interest on deposits     762     746   2.1 %     3,016     2,986   1.0 %
  Interest on borrowings     416     494   -15.8 %     2,084     1,869   11.5 %
    Total interest expense     1,178     1,240   -5.0 %     5,100     4,855   5.0 %
Net interest income     4,128     4,018   2.7 %     15,634     15,412   1.4 %
Provision for loan losses     270     140   92.9 %     630     407   54.8 %
Net interest income after provision for loan losses     3,858     3,878   -0.5 %     15,004     15,005   0.0 %
                                     
Noninterest income:                                    
  Service fees     372     363   2.5 %     1,471     1,437   2.4 %
  Gain on sale of loans held for sale     701     357   96.4 %     2,382     1,633   45.9 %
  Gain on sale of securities     -     -   -       284     422   -32.7 %
  Other service fees     184     177   4.0 %     716     687   4.2 %
  Earnings on bank-owned life insurance     100     96   4.2 %     398     404   -1.5 %
  Other     25     46   -45.7 %     140     175   -20.0 %
    Total noninterest income     1,382     1,039   33.0 %     5,391     4,758   13.3 %
                                     
Noninterest expense:                                    
  Salaries and benefits     1,917     1,609   19.1 %     7,324     7,692   -4.8 %
  Net occupancy     337     352   -4.3 %     1,383     1,416   -2.3 %
  Equipment     281     249   12.9 %     1,061     1,012   4.8 %
  Marketing and public relations     197     270   -27.0 %     832     884   -5.9 %
  Professional fees     145     167   -13.2 %     773     690   12.0 %
  Other     900     759   18.6 %     3,220     2,809   14.6 %
    Total noninterest expense     3,777     3,406   10.9 %     14,593     14,503   0.6 %
Income before income taxes     1,463     1,511   -3.2 %     5,802     5,260   10.3 %
Income taxes     422     476   -11.3 %     1,675     1,590   5.3 %
Net income     1,041     1,035   0.6 %     4,127     3,670   12.5 %
Less: Net income attributable to noncontrolling interest     5     5   -       5     5   -  
                                     
Net income attibutable to Elmira Savings Bank     1,036     1,031   0.5 %     4,122     3,665   12.5 %
                                     
Dividend on preferred stock     225     225   0.0 %     900     900   0.0 %
Income available to common shareholders   $ 811   $ 805   0.7 %   $ 3,222   $ 2,765   16.5 %
                                     
                                     
Basic earnings per share   $ 0.30   $ 0.30   0.0 %   $ 1.19   $ 1.03   15.5 %
                                     
Diluted earnings per share   $ 0.30   $ 0.29   3.4 %   $ 1.17   $ 0.99   18.2 %
                                     
Weighted average shares outstanding - basic     2,712,052     2,692,833   0.7 %     2,707,491     2,677,252   1.1 %
                                     
Weighted average shares outstanding - diluted     2,731,078     2,807,591   -2.7 %     2,762,332     2,799,670   -1.3 %
                                     
Dividends per share   $ 0.23   $ 0.23   0.0 %   $ 0.92   $ 0.92   0.0 %
                                     
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Twelve Months Ended  
    December 31, 2015     December 31, 2014  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 433,397   $ 18,418   4.24 %   $ 398,416   $ 17,709   4.44 %
Short-term investments     847     -   0.03       1,069     1   0.02  
Securities     75,228     2,316   3.08       77,349     2,557   3.31  
Total interest-earning assets     509,472     20,734   4.06       476,834     20,267   4.24  
                                     
Noninterest-earning assets     54,990                 44,418            
                                     
TOTAL ASSETS   $ 564,462               $ 521,252            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 365,142   $ 3,016   0.83     $ 339,720   $ 2,986   0.88  
Borrowings     70,773     2,084   2.90       60,263     1,869   3.06  
Total interest-bearing liabilities     435,915     5,100   1.16       399,983     4,855   1.21  
                                     
Noninterest-bearing liabilities     73,103                 65,727            
Shareholders' equity     55,444                 55,542            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 564,462               $ 521,252            
Interest rate spread               2.90 %               3.03 %
Net interest income/margin         $ 15,634   3.07 %         $ 15,412   3.23 %
                                     
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    December 31, 2015     December 31, 2014  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 447,731   $ 4,762   4.23 %   $ 413,733   $ 4,598   4.42 %
Short-term investments     177     -   0.10       1,318     -   0.02  
Securities     67,996     544   3.19       79,810     660   3.30  
Total interest-earning assets     515,904     5,306   4.09       494,861     5,258   4.23  
                                     
Noninterest-earning assets     47,119                 45,947            
                                     
TOTAL ASSETS   $ 563,023               $ 540,808            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 369,180   $ 762   0.82     $ 348,115   $ 746   0.85  
Borrowings     64,134     416   2.54       68,105     494   2.85  
Total interest-bearing liabilities     433,314     1,178   1.07       416,220     1,240   1.18  
                                     
Noninterest-bearing liabilities     74,581                 68,841            
Shareholders' equity     55,128                 55,747            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 563,023               $ 540,808            
Interest rate spread               3.02 %               3.05 %
Net interest income/margin         $ 4,128   3.19 %         $ 4,018   3.24 %
                                     
       
    Quarter Ended  
(Dollars in Thousands, Except Per Share Data)   12/31/2015     9/30/2015     6/30/2015     3/31/2015     12/31/2014  
                                         
Operating Data                                        
                                         
  Net income   $ 1,036     $ 1,057     $ 1,019     $ 1,010     $ 1,031  
  Net interest income     4,128       3,852       3,829       3,825       4,018  
  Provision for loan losses     270       170       140       50       140  
  Net security gains     -       -       80       204       -  
  Non-interest income, ex. Net security gains     1,382       1,539       1,155       1,031       1,039  
  Non-interest expense     3,777       3,725       3,522       3,569       3,406  
                                         
Performance Statistics                                        
                                         
  Net interest margin     3.19 %     2.97 %     3.04 %     3.07 %     3.24 %
  Annualized return on average assets     0.73 %     0.73 %     0.72 %     0.74 %     0.76 %
  Annualized return on average equity     7.46 %     7.60 %     7.39 %     7.29 %     7.37 %
  Annualized net loan charge-offs to avg loans     0.18 %     0.10 %     0.11 %     0.02 %     0.09 %
  Net charge-offs (recoveries)     204       117       114       21       94  
  Efficiency ratio     68.5 %     69.1 %     69.5 %     70.5 %     67.4 %
                                         
Per Share Data                                        
                                         
  Basic earnings per share   $ 0.30     $ 0.31     $ 0.29     $ 0.29     $ 0.30  
  Diluted earnings per share     0.30       0.30       0.29       0.28       0.29  
  Dividend declared per share     0.23       0.23       0.23       0.23       0.23  
  Book value     16.53       16.49       16.34       16.96       16.91  
  Common stock price:                                        
    High     21.13       20.81       20.82       23.00       23.00  
    Low     18.41       19.05       19.43       19.99       20.50  
    Close     19.88       19.20       20.09       20.40       23.00  
  Weighted average common shares:                                        
    Basic     2,712       2,710       2,707       2,701       2,693  
    Fully diluted     2,731       2,730       2,776       2,812       2,808  
  End-of-period common shares:                                        
    Issued     2,821       2,821       2,821       2,813       2,809  
    Treasury     98       98       98       98       104  
                                         
                                         
Financial Condition Data:                                        
General                                        
  Total assets   $ 561,344     $ 566,228     $ 572,890     $ 562,185     $ 545,969  
  Loans, net     447,220       438,777       431,993       416,235       413,385  
  Intangibles     12,381       12,396       12,412       12,428       12,445  
  Total deposits     440,472       442,046       437,663       426,075       422,561  
                                         
    Noninterest-bearing     66,964       72,293       68,707       64,442       62,019  
                                         
    Savings     66,914       64,421       64,758       63,776       65,287  
    NOW     87,083       85,136       86,835       78,169       78,920  
    Money Market     23,382       19,912       20,678       22,112       20,512  
    Time deposits     196,129       200,284       196,685       197,576       195,823  
    Total interest-bearing deposits     373,508       369,753       368,956       361,633       360,542  
                                         
  Shareholders' equity     54,771       54,657       54,233       55,818       55,493  
                                         
Asset Quality                                        
                                         
  Non-performing assets   $ 4,943     $ 4,545     $ 4,430     $ 4,790     $ 4,699  
  Non-performing assets to total assets     0.88 %     0.80 %     0.77 %     0.85 %     0.86 %
  Allowance for loan losses     4,148       4,082       4,028       4,002       3,974  
  Allowance for loan losses to total loans     0.92 %     0.92 %     0.92 %     0.95 %     0.95 %
  Allowance for loan losses to non-performing loans    
87.66
%    
91.20
%    
91.75
%    
83.55
%    
84.57
%
 
  Non-performing loans to total loans     1.05 %     1.01 %     1.01 %     1.14 %     1.13 %
                                         
Capitalization                                        
                                         
  Shareholders' equity to total assets     9.76 %     9.65 %     9.47 %     9.93 %     10.16 %
                                         

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