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CST: 24/01/2021 02:09:33   

Elmira Savings Bank Reports Third Quarter Earnings

465 Days ago

ELMIRA, New York, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $901,000 and $2,546,000 for the three and nine months ended September 30, 2019 compared to $1,010,000 and $3,304,000 for the same periods in 2018.
  • Diluted earnings per share were $.26 per share and $.73 per share for the three and nine months ended September 30, 2019 compared to $.29 per share and $.95 per share for the same periods in 2018. 
  • Return on average assets was .58% and .56% for the three and nine months ended September 30, 2019 compared to .71% and .79% for the three and nine months ended September 30, 2018.
  • Return on average equity was 6.08% and 5.80% for the three and nine months ended September 30, 2019 compared to 6.94% and 7.69% for the same periods in 2018.

“We are pleased with our loan and deposit growth in 2019 and continue to focus on improving profitability,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $2,546,000 for the nine months ended September 30, 2019, a decrease of $758,000 or 23% from the $3,304,000 of net income recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $652,000, an increase in the provision for loan losses of $327,000, and a decrease in net interest income of $76,000, offset by an increase in noninterest income of $21,000 and a decrease in tax expense of $276,000.

Net income totaled $901,000 for the three months ended September 30, 2019, a decrease of $109,000 or 11% from the $1,010,000 recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $152,000, an increase in the provision for loan losses of $100,000, and a decrease in net interest income of $18,000, offset by an increase in noninterest income of $150,000 and a decrease in tax expense of $11,000.

Basic and diluted earnings per share for the nine months ended September 30, 2019 were both $.73 per share compared to $.95 per share for both for the same period in 2018.  Basic and diluted earnings per share for the three months ended September 30, 2019 were both $.26 per share compared to $.29 per share for both for the same period in 2018. 

Net Interest Margin

The net interest margin for the nine months ended September 30, 2019 was 3.05% compared to 3.32% for the same period in 2018.  The yield on average earning assets was 4.31% for the nine months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.46% for the nine months ended September 30, 2019 compared to 1.02% for the same period in 2018.

The net interest margin for the three months ended September 30, 2019 was 2.97% compared to 3.26% for the same period in 2018.  The average yield on earning assets was 4.31% for the three months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.55% for the three months ended September 30, 2019 compared to 1.09% for the same period in 2018.

Assets

Total assets increased $25.6 million or 4.3% to $615.6 million at September 30, 2019 compared to $590.0 million at December 31, 2018.  Loans, including loans held for sale, increased 7.4% to $519.6 million at September 30, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $10.7 million from December 31, 2018 to September 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.92% at September 30, 2019 and 0.94% at December 31, 2018.  Net loan charge-offs to average loans for the nine months ended September 30, 2019 was 0.10% and was 0.07% for the nine months ended September 30, 2018.  The allowance for loan losses was 0.88% of total loans at September 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $520.0 million at September 30, 2019, an increase of $28.5 million or 5.8%.  The $28.5 million increase consists of a $37.9 million increase in time deposits, a $923,000 increase in noninterest-bearing accounts, and a $1.5 million increase in money market accounts, offset by a $6.3 million decrease in savings accounts and a $5.5 million decrease in interest bearing transaction accounts.  Borrowed funds totaled $29.0 million as of September 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $473,000 to $58.4 million at September 30, 2019 compared to December 31, 2018.  The current level of shareholders’ equity equates to a book value per share of $16.62 at September 30, 2019, compared to $16.52 at December 31, 2018.  Dividends paid for common shareholders were $0.23 and $0.69 for the three and nine months ended September 30, 2019 and were $0.23 and $0.68 for the three and nine months ended September 30, 2018.  

Elmira Savings Bank, with $615.6 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.

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


   
ELMIRA SAVINGS BANK  
CONSOLIDATED BALANCE SHEET  
(unaudited)  
                       
(in thousands, except for share and per share data)   September 30,   December 31,          
        2019   2018   % Change      
ASSETS                      
                       
Cash and due from banks     $ 18,608   $ 19,429   -4.2%      
Federal funds sold and other short-term investments 92   94   -2.1%      
Total cash and cash equivalents     18,700   19,523   -4.2%      
                       
Securities available for sale, at fair value   14,302   25,051   -42.9%      
Securities held to maturity - fair value $7,375                  
  at September 30, 2019, and $7,638 at December 31, 2018 7,160   7,518   -4.8%      
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 10,061   9,462   6.3%      
                       
Loans held for sale     3,339   1,392   139.9%      
                       
Loans receivable     516,309   482,272   7.1%      
Less: Allowance for loan losses     4,559   4,372   4.3%      
Net loans       511,750   477,900   7.1%      
                       
Premises and equipment, net     18,517   16,846   9.9%      
Bank-owned life insurance     14,819   14,444   2.6%      
Accrued interest receivable     1,631   1,566   4.2%      
Goodwill       12,320   12,320   0.0%      
Other assets       3,002   4,018   -25.3%      
Total assets       $ 615,601   $ 590,040   4.3%      
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                  
                       
Deposits       $ 520,030   $ 491,517   5.8%      
Borrowings       29,000   31,000   -6.5%      
Other liabilities       8,149   9,574   -14.9%      
Total liabilities     557,179   532,091   4.7%      
                       
Shareholders' equity:                    
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares                
  authorized; 10,000 shares issued at September 30, 2019 and at December 31, 2018       9,700   9,700   0.0%      
Common stock, $1 par value; 5,000,000 shares authorized; 3,606,089 shares                
  issued at September 30, 2019 and 3,597,605 shares issued at December 31, 2018       3,606   3,598   0.2%      
Additional paid-in capital     53,944   53,784   0.3%      
Retained earnings     3,299   3,176   3.9%      
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares                
  at September 30, 2019 and December 31, 2018   (12,202)   (12,202)   0.0%      
Accumulated other comprehensive income (loss)   25   (158)   -115.8%      
Total Elmira Savings Bank shareholders' equity   58,372   57,898   0.8%      
Noncontrolling interest     50   51   -2.0%      
Total shareholders' equity     58,422   57,949   0.8%      
Total liabilities and shareholders' equity   $ 615,601   $ 590,040   4.3%      
   


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)   2019   2018   % Change   2019   2018   % Change      
                               
Interest and dividend income:                              
Interest and fees on loans   $ 5,568   $ 4,896   13.7 %   $ 16,215   $ 14,478   12.0 %      
Interest and dividends on securities                              
Taxable     234     246   -4.9 %     759     742   2.3 %      
Non-taxable     107     118   -9.3 %     331     356   -7.0 %      
Total interest and dividend income     5,909     5,260   12.3 %     17,305     15,576   11.1 %      
                               
Interest expense:                              
Interest on deposits     1,627     932   74.6 %     4,407     2,509   75.6 %      
Interest on borrowings     210     238   -11.8 %     629     722   -12.9 %      
Total interest expense     1,837     1,170   57.0 %     5,036     3,231   55.9 %      
Net interest income     4,072     4,090   -0.4 %     12,269     12,345   -0.6 %      
Provision for loan losses     250     150   66.7 %     544     217   150.7 %      
Net interest income after provision for loan losses     3,822     3,940   -3.0 %     11,725     12,128   -3.3 %      
                               
Noninterest income:                              
Service fees     353     344   2.6 %     1,054     1,085   -2.9 %      
Gain on sale of loans held for sale     452     392   15.3 %     1,166     1,178   -1.0 %      
Gain on sale of securities     90     -   -       90     -   -        
Other service fees     250     214   16.8 %     664     615   8.0 %      
Earnings on bank-owned life insurance     98     96   2.1 %     284     289   -1.7 %      
Other     61     108   -43.5 %     157     227   -30.8 %      
Total noninterest income     1,304     1,154   13.0 %     3,415     3,394   0.6 %      
                               
Noninterest expense:                              
Salaries and benefits     2,258     1,975   14.3 %     6,383     5,920   7.8 %      
Net occupancy     379     398   -4.8 %     1,199     1,196   0.3 %      
Equipment     381     350   8.9 %     1,145     1,032   10.9 %      
Marketing and public relations     289     195   48.2 %     788     646   22.0 %      
Professional fees     90     130   -30.8 %     361     400   -9.8 %      
Other     646     843   -23.4 %     2,227     2,257   -1.3 %      
Total noninterest expense     4,043     3,891   3.9 %     12,103     11,451   5.7 %      
Income before income taxes     1,083     1,203   -10.0 %     3,037     4,071   -25.4 %      
Income taxes     182     193   -5.7 %     491     767   -36.0 %      
Net income     901     1,010   -10.8 %     2,546     3,304   -22.9 %      
Less: Net income attributable to noncontrolling interest     -     -   -       -     -   -        
                               
Net income attibutable to Elmira Savings Bank     901     1,010   -10.8 %     2,546     3,304   -22.9 %      
                               
Dividend on preferred stock     -     -   -       -     -   -        
Income available to common shareholders   $ 901   $ 1,010   -10.8 %   $ 2,546   $ 3,304   -22.9 %      
                               
                               
Basic earnings per share   $ 0.26   $ 0.29   -10.3 %   $ 0.73   $ 0.95   -23.2 %      
                               
Diluted earnings per share   $ 0.26   $ 0.29   -10.3 %   $ 0.73   $ 0.95   -23.2 %      
                               
Weighted average shares outstanding - basic     3,496,195     3,480,924   0.4 %     3,493,945     3,477,690   0.5 %      
                               
Weighted average shares outstanding - diluted     3,498,545     3,496,810   0.0 %     3,499,813     3,492,445   0.2 %      
                               
Dividends per share   $ 0.23   $ 0.23   0.0 %   $ 0.69   $ 0.68   1.5 %      
                               


ELMIRA SAVINGS BANK    
AVERAGE BALANCES AND INTEREST RATES    
                             
(Dollars in Thousands) For the Three Months Ended    
  September 30, 2019     September 30, 2018    
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate    
Loans $ 506,556   $ 5,568   4.36 %   $ 458,787   $ 4,896   4.24 %  
Short-term investments   689     4   2.15       479     2   1.61    
Securities   36,861     337   3.63       39,448     362   3.65    
Total interest-earning assets   544,106     5,909   4.31       498,714     5,260   4.19    
                             
Noninterest-earning assets   75,625               67,479            
                             
TOTAL ASSETS $ 619,731             $ 566,193            
                             
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Interest-bearing deposits $ 441,020   $ 1,627   1.46     $ 392,762   $ 932   0.94    
Borrowings   29,000     210   2.85       33,000     238   2.82    
Total interest-bearing liabilities   470,020     1,837   1.55       425,762     1,170   1.09    
                             
Noninterest-bearing liabilities   90,876               82,665            
Shareholders' equity   58,835               57,766            
                             
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 619,731             $ 566,193            
Interest rate spread         2.76 %           3.10 %  
Net interest income/margin     $ 4,072   2.97 %       $ 4,090   3.26 %  
                             


ELMIRA SAVINGS BANK    
AVERAGE BALANCES AND INTEREST RATES    
                             
(Dollars in Thousands) For the Nine Months Ended    
  September 30, 2019     September 30, 2018    
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate    
Loans $ 493,922   $ 16,215   4.37 %   $ 454,076   $ 14,478   4.24 %  
Short-term investments   562     9   2.06       464     5   1.45    
Securities   39,506     1,081   3.65       40,409     1,093   3.61    
Total interest-earning assets   533,990     17,305   4.31       494,949     15,576   4.19    
                             
Noninterest-earning assets   69,978               64,618            
                             
TOTAL ASSETS $ 603,968             $ 559,567            
                             
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Interest-bearing deposits $ 429,598   $ 4,407   1.37     $ 387,127   $ 2,509   0.87    
Borrowings   29,249     629   2.84       34,298     722   2.77    
Total interest-bearing liabilities   458,847     5,036   1.46       421,425     3,231   1.02    
                             
Noninterest-bearing liabilities   86,449               80,683            
Shareholders' equity   58,672               57,459            
                             
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 603,968             $ 559,567            
Interest rate spread         2.85 %           3.17 %  
Net interest income/margin     $ 12,269   3.05 %       $ 12,345   3.32 %  
                             


          Quarter Ended
(Dollars in Thousands, Except Per Share Data)   9/30/19     6/30/19     3/31/19     12/31/18     9/30/18    
Operating Data                      
  Net income $ 901   $ 718   $ 927   $ 935   $ 1,010    
  Net interest income   4,072     4,097     4,100     4,225     4,090    
  Provision for loan losses   250     162     132     150     150    
  Net security gains   90     -     -     -     -    
  Non-interest income, ex. Net security gains   1,214     1,126     985     1,124     1,154    
  Non-interest expense   4,043     4,206     3,854     4,038     3,891    
Performance Statistics                      
  Net interest margin   2.97 %   3.06 %   3.13 %   3.26 %   3.26 %  
  Annualized return on average assets   0.58 %   0.47 %   0.64 %   0.65 %   0.71 %  
  Annualized return on average equity   6.07 %   4.92 %   6.41 %   6.39 %   6.94 %  
  Annualized net loan charge-offs to avg loans   0.11 %   0.09 %   0.10 %   0.17 %   0.08 %  
  Net charge-offs   135     105     117     199     91    
  Efficiency ratio   75.2 %   80.5 %   75.8 %   75.5 %   74.2 %  
Per Share Data                      
  Basic earnings per share $ 0.26   $ 0.21   $ 0.27   $ 0.27   $ 0.29    
  Diluted earnings per share   0.26     0.21     0.26     0.27     0.29    
  Dividend declared per share   0.23     0.23     0.23     0.23     0.23    
  Book value   16.62     16.60     16.59     16.52     16.42    
  Common stock price:                      
    High   16.40     17.40     19.09     20.47     21.00    
    Low   13.97     15.69     16.32     15.77     20.10    
    Close   14.07     16.05     16.75     17.45     20.40    
  Weighted average common shares:                      
    Basic   3,496     3,493     3,492     3,487     3,481    
    Fully diluted   3,499     3,499     3,501     3,499     3,497    
  End-of-period common shares:                      
    Issued   3,606     3,605     3,601     3,598     3,593    
    Treasury   94     94     94     94     94    
                           
                           
Financial Condition Data:                      
General                      
  Total assets $ 615,601   $ 610,398   $ 596,613   $ 590,040   $ 570,785    
  Loans, net   511,750     496,149     484,780     477,900     462,713    
  Intangibles   12,320     12,320     12,320     12,320     12,320    
  Total deposits   520,030     516,327     503,089     491,517     474,449    
    Noninterest-bearing   82,613     81,249     76,414     81,690     78,324    
    Savings   69,186     71,100     71,642     75,483     71,748    
    NOW   84,207     85,130     85,808     89,666     89,835    
    Money Market   21,555     19,925     19,405     20,087     18,910    
    Time deposits   262,469     258,923     249,820     224,591     215,632    
    Total interest-bearing deposits   437,417     435,078     426,675     409,827     396,125    
  Shareholders' equity   58,422     58,357     58,231     57,949     57,512    
Asset Quality                      
  Non-performing assets $ 4,923   $ 4,996   $ 5,081   $ 4,649   $ 4,520    
  Non-performing assets to total assets   0.80 %   0.82 %   0.85 %   0.79 %   0.79 %  
  Allowance for loan losses   4,559     4,444     4,387     4,372     4,421    
  Allowance for loan losses to total loans   0.88 %   0.89 %   0.90 %   0.91 %   0.95 %  
  Allowance for loan losses to                      
    non-performing loans   96.43 %   93.55 %   89.71 %   97.16 %   100.00 %  
  Non-performing loans to total loans   0.92 %   0.96 %   1.01 %   0.94 %   0.96 %  
Capitalization                      
  Shareholders' equity to total assets   9.49 %   9.56 %   9.76 %   9.82 %   10.08 %  
                           

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