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Elmira Savings Bank Reports First Quarter Earnings

ELMIRA, N.Y., April 25, 2017 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,079,000 for the three months ended March 31, 2017 compared to $1,036,000 for the same period in 2016.
  • Diluted earnings per share were $.31 per share for the three months ended March 31, 2017 compared to $.30 per share for the same period in 2016.
  • Return on average assets was .78% for the three months ended March 31, 2017 and .74% for the same period in 2016.
  • Return on average equity was 7.74% for the three months ended March 31, 2017 compared to 7.52% for the same period in 2016.

“We are pleased with our year-over-year improvement in earnings, increasing our return on equity ratio and earnings per share,” said Thomas M. Carr, President and CEO. Carr continued, “This earnings improvement was highlighted by an increase in our net interest margin which has risen by 13 basis points year-to-year to 3.32% for the first quarter of 2017.”

Net Income

Net income totaled $1,079,000 for the three months ended March 31, 2017, an increase of $43,000 or 4.2% from the $1,036,000 recorded for the same period in 2016. This increase was the net result of an increase in net interest income of $73,000, a decrease in noninterest expense of $19,000, and a decrease in the provision for loan losses of $100,000, offset by a decrease in noninterest income of $90,000 and an increase in tax expense of $59,000.

Basic and diluted earnings per share for the three months ended March 31, 2017 were both $.31 per share compared to $.30 per share for both for the same period in 2016.

Net Interest Margin

The net interest margin for the three months ended March 31, 2017 was 3.32% compared to 3.19% for the first quarter of 2016. The yield on average earning assets was 4.11% for the three months ended March 31, 2017 compared to 4.07% for the same period in 2016. The average cost of interest-bearing liabilities was .93% for the three months ended March 31, 2017 compared to 1.04% for the three months ended March 31, 2016.

Assets

Total assets decreased $16.8 million or 2.9% to $556.6 million at March 31, 2017 compared to $573.5 million at December 31, 2016. Loans receivable decreased 1.2% to $450.5 million at March 31, 2017 compared to December 31, 2016. The available-for-sale investment portfolio decreased $2.1 million from December 31, 2016 to March 31, 2017, and cash and cash equivalents decreased by $7.7 million from December 31, 2016 to March 31, 2017.

Nonperforming Loans

Our nonperforming loans to total loans ratio was .91% at March 31, 2017 and 1.10% at December 31, 2016. Net loan charge-offs to average loans for the three months ended March 31, 2017 of .01% decreased from .07% for the three months ended March 31, 2016. The allowance for loan losses was .95% of total loans at March 31, 2017 and .94% at December 31, 2016.

Liabilities

Deposits totaled $450.4 million at March 31, 2017, a decrease of $19.2 million or 4.1% from the December 31, 2016 total of $469.5 million. Borrowed funds remained unchanged from December 31, 2016 at $42.0 million.

Shareholders’ Equity

Shareholders’ equity increased $380,000 to $56.1 million at March 31, 2017 compared to December 31, 2016. The current level of shareholders’ equity equates to a book value per share of $16.82 at March 31, 2017, compared to $16.74 at December 31, 2016. Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2017 and 2016.

Elmira Savings Bank, with $556.6 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 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) March 31, December 31,
2017 2016 % Change
ASSETS
Cash and due from banks $ 16,462 $ 24,195 -32.0%
Federal funds sold and other short-term investments 98 99 -1.0%
Total cash and cash equivalents 16,560 24,294 -31.8%
Securities available for sale, at fair value 30,468 32,581 -6.5%
Securities held to maturity - fair value $8,515
at March 31, 2017 and $8,679 at December 31, 2016 8,374 8,519 -1.7%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 9,689 9,811 -1.2%
Loans held for sale 1,186 3,597 -67.0%
Loans receivable 450,510 455,931 -1.2%
Less: Allowance for loan losses 4,287 4,263 0.6%
Net loans 446,223 451,668 -1.2%
Premises and equipment, net 14,349 12,634 13.6%
Bank-owned life insurance 13,688 13,592 0.7%
Accrued interest receivable 1,057 1,552 -31.9%
Intangible assets, net 14 20 -30.0%
Goodwill 12,320 12,320 0.0%
Other assets 2,716 2,862 -5.1%
Total assets $ 556,644 $ 573,450 -2.9%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 450,376 $ 469,547 -4.1%
Borrowings 42,000 42,000 0.0%
Other liabilities 8,165 6,180 32.1%
Total liabilities 500,541 517,727 -3.3%
Shareholders' equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares
authorized; 10,000 shares issued at March 31, 2017 and at December 31, 2016 9,700 9,700 0.0%
Common stock, $1 par value; authorized 5,000,000 shares; 2,849,813 shares
issued at March 31, 2017 and 2,844,670 shares issued at December 31, 2016 2,850 2,845 0.2%
Additional paid-in capital 41,677 41,644 0.1%
Retained earnings 4,627 4,407 5.0%
Treasury stock, at cost - 93,883 shares at March 31, 2017
and 98,118 shares at December 31, 2016 (2,802) (2,907) -3.6%
Accumulated other comprehensive loss (1) (19) -94.7%
Total Elmira Savings Bank shareholders' equity 56,051 55,670 0.7%
Noncontrolling interest 52 53 -1.9%
Total shareholders' equity 56,103 55,723 0.7%
Total liabilities and shareholders' equity $ 556,644 $ 573,450 -2.9%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Three Months Ended
March 31,
(in thousands, except for per share data) 2017 2016 % Change
Interest and dividend income:
Interest and fees on loans $ 4,735 $ 4,729 0.1%
Interest and dividends on securities
Taxable 244 285 -14.4%
Non-taxable 189 219 -13.7%
Total interest and dividend income 5,168 5,233 -1.2%
Interest expense:
Interest on deposits 730 734 -0.5%
Interest on borrowings 265 399 -33.6%
Total interest expense 995 1,133 -12.2%
Net interest income 4,173 4,100 1.8%
Provision for loan losses 40 140 -71.4%
Net interest income after provision for loan losses 4,133 3,960 4.4%
Noninterest income:
Service fees 379 348 8.9%
Gain on sale of loans held for sale 583 522 11.7%
Gain on sale of securities - 180 -100.0%
Other service fees 176 180 -2.2%
Earnings on bank-owned life insurance 96 97 -1.0%
Other 27 24 12.5%
Total noninterest income 1,261 1,351 -6.7%
Noninterest expense:
Salaries and benefits 1,959 1,927 1.7%
Net occupancy 412 369 11.7%
Equipment 312 275 13.5%
Marketing and public relations 200 201 -0.5%
Professional fees 168 180 -6.7%
Other 777 895 -13.2%
Total noninterest expense 3,828 3,847 -0.5%
Income before income taxes 1,566 1,464 7.0%
Income taxes 487 428 13.8%
Net income 1,079 1,036 4.2%
Less: Net income attributable to noncontrolling interest - - -
Net income attributable to Elmira Savings Bank 1,079 1,036 4.2%
Dividend on preferred stock 225 225 0.0%
Income available to common shareholders $ 854 $ 811 5.3%
Basic earnings per share $ 0.31 $ 0.30 3.3%
Diluted earnings per share $ 0.31 $ 0.30 3.3%
Weighted average shares outstanding - basic 2,739,157 2,715,915 0.9%
Weighted average shares outstanding - diluted 2,757,422 2,733,014 0.9%
Dividends per share $ 0.23 $ 0.23 0.0%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands) For the Three Months Ended
March 31, 2017 March 31, 2016
ASSETS: Average Balance Interest Average Rate Average Balance Interest Average Rate
Loans receivable $ 453,195 $ 4,735 4.20% $ 453,828 $ 4,729 4.17%
Federal funds sold and other short-term investments 1,887 2 0.45 381 - 0.16
Securities 49,696 431 3.48 59,630 504 3.38
Total interest-earning assets 504,778 5,168 4.11 513,839 5,233 4.07
Noninterest-earning assets 59,626 48,009
TOTAL ASSETS $ 564,404 $ 561,848
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits $ 388,286 $ 730 0.76 $ 374,605 $ 734 0.79
Borrowings 42,205 265 2.51 58,997 399 2.68
Total interest-bearing liabilities 430,491 995 0.93 433,602 1,133 1.04
Noninterest-bearing liabilities 77,351 72,848
Shareholders' equity 56,562 55,398
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 564,404 $ 561,848
Interest rate spread 3.18% 3.03%
Net interest income/margin $ 4,173 3.32% $ 4,100 3.19%

Quarter Ended
(Dollars in Thousands, Except Per Share Data) 3/31/2017 12/31/2016 9/30/2016 6/30/2016 3/31/2016
Operating Data
Net income $ 1,079 $ 1,042 $ 1,202 $ 1,057 $ 1,036
Net interest income 4,173 4,155 4,211 4,054 4,100
Provision for loan losses 40 175 87 85 140
Net security gains - - - - 180
Non-interest income, ex. Net security gains 1,261 1,395 1,716 1,438 1,171
Non-interest expense 3,828 3,888 3,976 3,891 3,847
Performance Statistics
Net interest margin 3.32% 3.23% 3.24% 3.17% 3.19%
Annualized return on average assets 0.78% 0.73% 0.84% 0.75% 0.74%
Annualized return on average equity 7.74% 7.38% 8.54% 7.65% 7.52%
Annualized net loan charge-offs to avg loans 0.01% 0.20% 0.05% 0.01% 0.07%
Net charge-offs 16 231 53 14 74
Efficiency ratio 70.4% 70.1% 67.1% 70.8% 70.6%
Per Share Data
Basic earnings per share $ 0.31 $ 0.30 $ 0.36 $ 0.31 $ 0.30
Diluted earnings per share 0.31 0.30 0.36 0.30 0.30
Dividend declared per share 0.23 0.23 0.23 0.23 0.23
Book value 16.82 16.74 16.80 16.69 16.59
Common stock price:
High 21.75 22.25 21.50 20.10 20.55
Low 20.28 18.50 18.85 18.06 16.83
Close 21.60 20.45 19.91 19.66 18.01
Weighted average common shares:
Basic 2,739 2,731 2,724 2,718 2,716
Fully diluted 2,757 2,750 2,741 2,735 2,733
End-of-period common shares:
Issued 2,850 2,845 2,839 2,832 2,828
Treasury 94 98 98 98 98
Financial Condition Data:
General
Total assets $ 556,644 $ 573,450 $ 567,450 $ 574,721 $ 560,020
Loans, net 446,223 451,668 455,251 463,104 452,718
Intangibles 12,334 12,340 12,349 12,360 12,371
Total deposits 450,376 469,547 463,414 470,462 443,552
Noninterest-bearing 71,870 70,330 72,102 70,803 65,165
Savings 70,300 70,621 69,019 69,159 67,295
NOW 86,633 85,822 86,787 121,875 105,094
Money Market 27,697 28,889 25,715 25,172 25,281
Time deposits 193,876 213,885 209,791 183,453 180,717
Total interest-bearing deposits 378,506 399,217 391,312 399,659 378,387
Shareholders' equity 56,103 55,723 55,792 55,382 55,039
Asset Quality
Non-performing assets $ 4,234 $ 5,289 $ 5,345 $ 5,622 $ 5,328
Non-performing assets to total assets 0.76% 0.92% 0.94% 0.98% 0.95%
Allowance for loan losses 4,287 4,263 4,319 4,285 4,214
Allowance for loan losses to total loans 0.95% 0.94% 0.94% 0.92% 0.92%
Allowance for loan losses to
non-performing loans 105.93% 84.80% 85.00% 80.41% 83.69%
Non-performing loans to total loans 0.91% 1.11% 1.12% 1.15% 1.10%
Capitalization
Shareholders' equity to total assets 10.08% 9.72% 9.83% 9.64% 9.83%


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

Source:Elmira Savings Bank