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CST: 19/09/2019 00:31:35   

CORRECTING & REPLACING -- Elmira Savings Bank Reports Second Quarter Earnings

62 Days ago

In a release issued under the same headline yesterday by Elmira Savings Bank (NASDAQ:ESBK) please note that the text of the release held information pertaining exclusively to the second quarter of 2018. The corrected release follows:

ELMIRA, N.Y., July 18, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $718,000 and $1,645,000 for the three and six months ended June 30, 2019 compared to $1,163,000 and $2,294,000 for the same periods in 2018.
  • Diluted earnings per share were $.21 per share and $.47 per share for the three and six months ended June 30, 2019 compared to $.33 per share and $.66 per share for the same periods in 2018. 
  • Return on average assets was .47% and .56% for the three and six months ended June 30, 2019 compared to .83% for both the three and six months ended June 30, 2018.
  • Return on average equity was 4.92% and 5.66% for the three and six months ended June 30, 2019 compared to 8.11% and 8.07% for the same periods in 2018.

“We are pleased with our loan and deposit growth through the first half of the year.  We are focused on improving profitability.  We anticipate our efforts to have a positive impact during the last two quarters of the year,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $1,645,000 for the six months ended June 30, 2019, a decrease of $649,000 or 28% from the $2,294,000 of net income recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $500,000, an increase in the provision for loan losses of $227,000, a decrease in net interest income of $58,000, and a decrease in noninterest income of $129,000, offset by a decrease in tax expense of $265,000.

Net income totaled $718,000 for the three months ended June 30, 2019, a decrease of $445,000 or 38% from the $1,163,000 recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $474,000, an increase in the provision for loan losses of $137,000, a decrease in noninterest income of $4,000, offset by and a decrease in tax expense of $153,000 and an increase in net interest income of $17,000.

Basic and diluted earnings per share for the six months ended June 30, 2019 were both $.47 per share compared to $.66 per share for both for the same period in 2018.  Basic and diluted earnings per share for the three months ended June 30, 2019 were both $.21 per share compared to $.33 per share for both for the same period in 2018.  Per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

Net Interest Margin

The net interest margin for the six months ended June 30, 2019 was 3.10% compared to 3.35% for the same period in 2018.  The yield on average earning assets was 4.31% for the six months ended June 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.42% for the six months ended June 30, 2019 compared to .99% for the same period in 2018.

The net interest margin for the three months ended June 30, 2019 was 3.06% compared to 3.32% for the same period in 2018.  The average yield on earning assets was 4.36% for the three months ended June 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.50% for the three months ended June 30, 2019 compared to 1.01% for the same period in 2018.

Assets

Total assets increased $20.4 million or 3.5% to $610.4 million at June 30, 2019 compared to $590.0 million at December 31, 2018.  Loans, including loans held for sale, increased 3.8% to $502.0 million at June 30, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $2.4 million from December 31, 2018 to June 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.96% at June 30, 2019 and 0.94% at December 31, 2018.  Net loan charge-offs to average loans for the six months ended June 30, 2019 was 0.09% and was 0.07% for the six months ended June 30, 2018.  The allowance for loan losses was 0.89% of total loans at June 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $516.3 million at June 30, 2019, an increase of $24.8 million or 5.0%.  The $24.8 million increase consists of an $34.3 million increase in time deposits, offset by a $4.4 million decrease in savings accounts, a $441,000 decrease in noninterest-bearing accounts, a $4.5 million decrease in interest bearing transaction accounts, and a $162,000 decrease in money market accounts.  Borrowed funds totaled $29.0 million as of June 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $408,000 to $58.4 million at June 30, 2019 compared to December 31, 2018.  The current level of shareholders’ equity equates to a book value per share of $16.60 at June 30, 2019, compared to $16.52 at December 31, 2018.  Dividends paid for common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2019 and 2018.  

Elmira Savings Bank, with $610.4 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 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,    
    2019       2018     % Change
ASSETS          
           
Cash and due from banks $ 22,633     $ 19,429     16.5 %
Federal funds sold and other short-term investments   92       94     -2.1 %
Total cash and cash equivalents   22,725       19,523     16.4 %
           
Securities available for sale, at fair value   22,615       25,051     -9.7 %
Securities held to maturity - fair value $7,344          
at June 30, 2019, and $7,638 at December 31, 2018   7,254       7,518     -3.5 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost   9,699       9,462     2.5 %
           
Loans held for sale   1,451       1,392     4.2 %
           
Loans receivable   500,593       482,272     3.8 %
Less: Allowance for loan losses   4,444       4,372     1.6 %
Net loans   496,149       477,900     3.8 %
           
Premises and equipment, net   18,723       16,846     11.1 %
Bank-owned life insurance   14,720       14,444     1.9 %
Accrued interest receivable   1,613       1,566     3.0 %
Goodwill   12,320       12,320     0.0 %
Other assets   3,129       4,018     -22.1 %
Total assets $ 610,398     $ 590,040     3.5 %
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
Deposits $ 516,327     $ 491,517     5.0 %
Borrowings   29,000       31,000     -6.5 %
Other liabilities   6,714       9,574     -29.9 %
Total liabilities   552,041       532,091     3.7 %
           
Shareholders' equity:          
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares          
authorized; 10,000 shares issued at June 30, 2019 and at December 31, 2018   9,700       9,700     0.0 %
Common stock, $1 par value; 5,000,000 shares authorized; 3,605,336 shares          
issued at June 30, 2019 and 3,597,605 shares issued at December 31, 2018   3,605       3,598     0.2 %
Additional paid-in capital   53,892       53,784     0.2 %
Retained earnings   3,206       3,176     0.9 %
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares          
at June 30, 2019 and December 31, 2018   (12,202 )     (12,202 )   0.0 %
Accumulated other comprehensive income (loss)   106       (158 )   -167.1 %
Total Elmira Savings Bank shareholders' equity   58,307       57,898     0.7 %
Noncontrolling interest   50       51     -2.0 %
Total shareholders' equity   58,357       57,949     0.7 %
Total liabilities and shareholders' equity $ 610,398     $ 590,040     3.5 %


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)   2019     2018   % Change     2019     2018   % Change
                       
Interest and dividend income:                      
Interest and fees on loans $ 5,464   $ 4,786   14.2 %   $ 10,647   $ 9,582   11.1 %
Interest and dividends on securities                      
Taxable   252     244   3.3 %     525     496   5.8 %
Non-taxable   109     118   -7.6 %     224     238   -5.9 %
Total interest and dividend income   5,825     5,148   13.2 %     11,396     10,316   10.5 %
                       
Interest expense:                      
Interest on deposits   1,519     827   83.7 %     2,780     1,577   76.3 %
Interest on borrowings   209     241   -13.3 %     419     484   -13.4 %
Total interest expense   1,728     1,068   61.8 %     3,199     2,061   55.2 %
Net interest income   4,097     4,080   0.4 %     8,197     8,255   -0.7 %
Provision for loan losses   162     25   548.0 %     294     67   338.8 %
Net interest income after provision for loan losses   3,935     4,055   -3.0 %     7,903     8,188   -3.5 %
                       
Noninterest income:                      
Service fees   345     353   -2.3 %     701     741   -5.4 %
Gain on sale of loans held for sale   425     408   4.2 %     714     786   -9.2 %
Other service fees   212     208   1.9 %     414     401   3.2 %
Earnings on bank-owned life insurance   94     103   -8.7 %     186     193   -3.6 %
Other   50     58   -13.8 %     96     119   -19.3 %
Total noninterest income   1,126     1,130   -0.4 %     2,111     2,240   -5.8 %
                       
Noninterest expense:                      
Salaries and benefits   2,105     1,998   5.4 %     4,125     3,945   4.6 %
Net occupancy   375     369   1.6 %     820     798   2.8 %
Equipment   401     345   16.2 %     764     682   12.0 %
Marketing and public relations   253     230   10.0 %     499     451   10.6 %
Professional fees   133     93   43.0 %     271     270   0.4 %
Other   939     697   34.7 %     1,581     1,414   11.8 %
Total noninterest expense   4,206     3,732   12.7 %     8,060     7,560   6.6 %
Income before income taxes   855     1,453   -41.2 %     1,954     2,868   -31.9 %
Income taxes   137     290   -52.8 %     309     574   -46.2 %
Net income   718     1,163   -38.3 %     1,645     2,294   -28.3 %
Less: Net income attributable to noncontrolling interest   -     -   -       -     -   -  
                       
Net income attributable to Elmira Savings Bank   718     1,163   -38.3 %     1,645     2,294   -28.3 %
                       
Dividend on preferred stock   -     -   -       -     -   -  
Income available to common shareholders $ 718   $ 1,163   -38.3 %   $ 1,645   $ 2,294   -28.3 %
                       
                       
Basic earnings per share $ 0.21   $ 0.33   -36.4 %   $ 0.47   $ 0.66   -28.8 %
                       
Diluted earnings per share $ 0.21   $ 0.33   -36.4 %   $ 0.47   $ 0.66   -28.8 %
                       
Weighted average shares outstanding - basic   3,493,298     3,477,210   0.5 %     3,492,571     3,476,037   0.5 %
                       
Weighted average shares outstanding - diluted   3,499,335     3,491,182   0.2 %     3,500,198     3,490,227   0.3 %
                       
Dividends per share $ 0.23   $ 0.23   0.0 %   $ 0.46   $ 0.45   2.2 %
                       
  Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.  

 

ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                           
(Dollars in Thousands) For the Three Months Ended  
  June 30, 2019     June 30, 2018  
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
                           
Loans $ 492,985   $ 5,464   4.42 % $ 450,018   $ 4,786   4.25 %
Short-term investments   513     3   2.11       479     2   1.39  
Securities   39,985     358   3.59       40,283     360   3.59  
Total interest-earning assets   533,483     5,825   4.36       490,780     5,148   4.19  
                           
Noninterest-earning assets   72,842               68,385          
                           
TOTAL ASSETS $ 606,325             $ 559,165          
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
Interest-bearing deposits $ 431,816   $ 1,519   1.41     $ 386,677   $ 827   0.86  
Borrowings   29,000     209   2.85       34,407     241   2.77  
Total interest-bearing liabilities   460,816     1,728   1.50       421,084     1,068   1.01  
                           
Noninterest-bearing liabilities   86,960               80,595          
Shareholders' equity   58,549               57,486          
                           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 606,325             $ 559,165          
Interest rate spread         2.86 %           3.18 %
Net interest income/margin     $ 4,097   3.06 %       $ 4,080   3.32 %


ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                           
(Dollars in Thousands) For the Six Months Ended  
  June 30, 2019     June 30, 2018  
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
                           
Loans $ 487,500   $ 10,647   4.37 % $ 451,681   $ 9,582   4.25 %
Short-term investments   496     5   2.00       456     3   1.36  
Securities   40,851     744   3.66       40,898     731   3.59  
Total interest-earning assets   528,847     11,396   4.31       493,035     10,316   4.19  
                           
Noninterest-earning assets   67,108               63,164          
                           
TOTAL ASSETS $ 595,955             $ 556,199          
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
Interest-bearing deposits $ 423,792   $ 2,780   1.32     $ 384,263   $ 1,577   0.83  
Borrowings   29,376     419   2.83       34,958     484   2.75  
Total interest-bearing liabilities   453,168     3,199   1.42       419,221     2,061   0.99  
                           
Noninterest-bearing liabilities   84,198               79,675          
Shareholders' equity   58,589               57,303          
                           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 595,955             $ 556,199          
Interest rate spread         2.89 %           3.20 %
Net interest income/margin     $ 8,197   3.10 %       $ 8,255   3.35 %


      Quarter Ended
(Dollars in Thousands, Except Per Share Data) 6/30/2019   3/31/2019   12/31/2018   9/30/2018   6/30/2018
Operating Data                    
Net income $ 718   $ 927   $ 935   $ 1,010   $ 1,163  
Net interest income   4,097     4,100     4,225     4,090     4,080  
Provision for loan losses   162     132     150     150     25  
Net security gains   -     -     -     -     -  
Non-interest income, ex. Net security gains   1,126     985     1,124     1,154     1,130  
Non-interest expense   4,206     3,854     4,038     3,891     3,732  
Performance Statistics                    
Net interest margin   3.06 %   3.13 %   3.26 %   3.26 %   3.32 %
Annualized return on average assets   0.47 %   0.64 %   0.65 %   0.71 %   0.83 %
Annualized return on average equity   4.92 %   6.41 %   6.39 %   6.94 %   8.11 %
Annualized net loan charge-offs to avg loans 0.09 %   0.10 %   0.17 %   0.08 %   0.09 %
Net charge-offs   105     117     199     91     96  
Efficiency ratio   80.5 %   75.8 %   75.5 %   74.2 %   71.6 %
Per Share Data                    
Basic earnings per share $ 0.21   $ 0.27   $ 0.27   $ 0.29   $ 0.33  
Diluted earnings per share   0.21     0.26     0.27     0.29     0.33  
Dividend declared per share   0.23     0.23     0.23     0.23     0.23  
Book value   16.60     16.59     16.52     16.42     16.36  
Common stock price:                    
High   17.40     19.09     20.47     21.00     20.60  
Low   15.69     16.32     15.77     20.10     19.29  
Close   16.05     16.75     17.45     20.40     20.43  
Weighted average common shares:                    
Basic   3,493     3,492     3,487     3,481     3,477  
Fully diluted   3,499     3,501     3,499     3,497     3,491  
End-of-period common shares:                    
Issued   3,605     3,601     3,598     3,593     3,593  
Treasury   94     94     94     94     94  
                     
                     
Financial Condition Data:                    
General                    
Total assets $ 610,398   $ 596,613   $ 590,040   $ 570,785   $ 562,924  
Loans, net   496,149     484,780     477,900     462,713     448,690  
Intangibles   12,320     12,320     12,320     12,320     12,320  
Total deposits   516,327     503,089     491,517     474,449     468,293  
Noninterest-bearing   81,249     76,414     81,690     78,324     76,880  
Savings   71,100     71,642     75,483     71,748     73,200  
NOW   85,130     85,808     89,666     89,835     87,402  
Money Market   19,925     19,405     20,087     18,910     21,934  
Time deposits   258,923     249,820     224,591     215,632     208,877  
Total interest-bearing deposits   435,078     426,675     409,827     396,125     391,413  
Shareholders' equity   58,357     58,231     57,949     57,512     57,299  
Asset Quality                    
Non-performing assets $ 4,996   $ 5,081   $ 4,649   $ 4,520   $ 4,560  
Non-performing assets to total assets   0.82 %   0.85 %   0.79 %   0.79 %   0.81 %
Allowance for loan losses   4,444     4,387     4,372     4,421     4,362  
Allowance for loan losses to total loans   0.89 %   0.90 %   0.91 %   0.95 %   0.96 %
Allowance for loan losses to                    
non-performing loans   93.55 %   89.71 %   97.16 %   100.00 %   99.18 %
Non-performing loans to total loans   0.96 %   1.01 %   0.94 %   0.96 %   0.98 %
Capitalization                    
Shareholders' equity to total assets   9.56 %   9.76 %   9.82 %   10.08 %   10.18 %
                     

For further information contact:
Thomas M. Carr, President & CEO
Elmira Savings Bank
333 East Water Street
Elmira, New York, 14901
(607) 735-8660
tcarr@elmirasavingsbank.com

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