ELMIRA, N.Y., July 18, 2018 (GLOBE NEWSWIRE) — Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,163,000 and $2,294,000 for the three and six months ended June 30, 2018 compared to $1,108,000 and $2,187,000 for the same periods in 2017.
  • Diluted earnings per share were $.33 per share and $.66 per share for the three and six months ended June 30, 2018 compared to $.27 per share and $.56 per share for the same periods in 2017. 
  • Return on average assets was .83% for both the three and six months ended June 30, 2018 compared to .79% and .78% for the same periods in 2017.
  • Return on average equity was 8.11% and 8.07% for the three and six months ended June 30, 2018 compared to 7.01% and 7.35% for the same periods in 2017.

“The increase in net income combined with the effect of our capital restructuring last year has improved diluted earnings per share by 18% for the first half of 2018 compared to the same period one year ago,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $2,294,000 for the six months ended June 30, 2018, an increase of $107,000 or 5% from the $2,187,000 of net income recorded for the same period in 2017.  This increase was the net result of a decrease in noninterest expense of $49,000, a decrease in the provision for loan losses of $128,000, and a decrease in tax expense of $407,000, offset by a decrease in noninterest income of $373,000 and a decrease in net interest income of $104,000.

Net income totaled $1,163,000 for the three months ended June 30, 2018, an increase of $55,000 or 5% from the $1,108,000 recorded for the same period in 2017.  This increase was the net result of a decrease in noninterest expense of $49,000, a decrease in the provision for loan losses of $130,000, and a decrease in tax expense of $204,000, offset by a decrease in noninterest income of $222,000 and a decrease in net interest income of $106,000.

Basic and diluted earnings per share for the six months ended June 30, 2018 were both $.66 per share compared to $.56 per share for both for the same period in 2017.  Basic and diluted earnings per share for the three months ended June 30, 2018 were both $.33 per share compared to $.27 per share for both for the same period in 2017.  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, 2018 was 3.35% compared to 3.34% for the same period in 2017.  The yield on average earning assets was 4.19% for the six months ended June 30, 2018 compared to 4.13% for the same period in 2017.  The average cost of interest-bearing liabilities was .99% for the six months ended June 30, 2018 compared to .94% for the same period in 2017.

The net interest margin for the three months ended June 30, 2018 was 3.32% compared to 3.36% for the same period in 2017.  The average yield on earning assets was 4.19% for the three months ended June 30, 2018 compared to 4.15% for the same period in 2017.  The average cost of interest-bearing liabilities was 1.01% for the three months ended June 30, 2018 compared to .94% for the same period in 2017.

Assets

Total assets increased $8.4 million or 1.5% to $562.9 million at June 30, 2018 compared to $554.6 million at December 31, 2017.  Loans, including loans held for sale, decreased 1.4% to $454.3 million at June 30, 2018 compared to December 31, 2017.  The available-for-sale investment portfolio decreased $1.7 million from December 31, 2017 to June 30, 2018.

Nonperforming Loans

Our nonperforming loans to total loans ratio has increased to 0.98% at June 30, 2018 from .64% at December 31, 2017.  Net loan charge-offs to average loans for the six months ended June 30, 2018 of 0.07% was the same as the six months ended June 30, 2017.  The allowance for loan losses was 0.96% of total loans at June 30, 2018 and 0.97% of total loans at December 31, 2017.

Liabilities

Deposits total $468.3 million at June 30, 2018, an increase of $11.5 million or 2.5%.  The $11.5 million increase consists of an $8.7 million increase in time deposits, a $2.9 million increase in savings accounts, a $2.8 million increase in noninterest-bearing accounts, and a $603,000 increase in interest bearing transaction accounts, offset by a $3.4 million decrease in money market accounts.  Borrowed funds totaled at $33.0 million as of June 30, 2018, a decrease of $2.0 million from December 31, 2017.

Shareholders’ Equity

Shareholders’ equity increased $618,000 to $57.3 million at June 30, 2018 compared to December 31, 2017.  The current level of shareholders’ equity equates to a book value per share of $16.36 at June 30, 2018, compared to $16.26 at December 31, 2017.  Dividends paid for common shareholders were $0.23 and $0.45 for the three and six months ended for both June 30, 2018 and 2017.  As a result of the repurchase of all outstanding preferred shares in December 2017, there were no dividends paid for preferred shares for the three or six months ended June 30, 2018 versus $225,000 and $450,000 paid in preferred dividends for the same periods in 2017.

Elmira Savings Bank, with $562.9 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,      
          2018       2017     % Change  
ASSETS                  
                   
Cash and due from banks     $   25,178     $   7,800     222.8 %  
Federal funds sold and other short-term investments       95         97     -2.1 %  
Total cash and cash equivalents         25,273         7,897     220.0 %  
                   
Securities available for sale, at fair value       22,375         24,056     -7.0 %  
Securities held to maturity – fair value $7,992              
at June 30, 2018, and $8,186 at December 31, 2017       7,773         8,039     -3.3 %  
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     9,632         10,221     -5.8 %  
                   
Loans held for sale         1,256         1,999     -37.2 %  
                   
Loans receivable         453,052       458,629     -1.2 %  
Less: Allowance for loan losses       4,362       4,442     -1.8 %  
Net loans         448,690       454,187     -1.2 %  
                   
Premises and equipment, net       16,722       16,772     -0.3 %  
Bank-owned life insurance       14,253       13,982     1.9 %  
Accrued interest receivable       1,043       1,497     -30.3 %  
Goodwill         12,320       12,320     0.0 %  
Other assets         3,587       3,590     -0.1 %  
Total assets       $ 562,924     $ 554,560     1.5 %  
                   
LIABILITIES AND SHAREHOLDERS’ EQUITY              
                   
Deposits       $ 468,293     $ 456,762     2.5 %  
Borrowings         33,000       35,000     -5.7 %  
Other liabilities         4,332       6,117     -29.2 %  
Total liabilities         505,625       497,879     1.6 %  
                   
Shareholders’ equity:                
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares            
authorized; 10,000 shares issued at June 30, 2018 and at December 31, 2017   9,700       9,700     0.0 %  
Common stock, $1 par value; 5,000,000 shares authorized; 3,593,223 shares            
issued at June 30, 2018 and 3,410,622 shares issued at December 31, 2017   3,593       3,411     5.3 %  
Additional paid-in capital       53,599       50,258     6.6 %  
Retained earnings       2,842       5,493     -48.3 %  
Treasury stock, at cost – 93,883 common shares and 10,000 preferred shares            
at June 30, 2018 and December 31, 2017     (12,202 )     (12,202 )   0.0 %  
Accumulated other comprehensive loss     (284 )     (31 )   816.1 %  
Total Elmira Savings Bank shareholders’ equity     57,248       56,629     1.1 %  
Noncontrolling interest       51       52     -1.9 %  
Total shareholders’ equity       57,299       56,681     1.1 %  
Total liabilities and shareholders’ equity   $ 562,924     $ 554,560     1.5 %  
                   
       

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)     2018     2017   % Change     2018     2017   % Change    
                             
Interest and dividend income:                            
Interest and fees on loans   $ 4,786   $ 4,789   -0.1 %   $ 9,582   $ 9,524   0.6 %    
Interest and dividends on securities                            
Taxable     244     228   7.0 %     496     472   5.1 %    
Non-taxable     118     156   -24.4 %     238     345   -31.0 %    
Total interest and dividend income     5,148     5,173   -0.5 %     10,316     10,341   -0.2 %    
                             
Interest expense:                            
Interest on deposits     827     720   14.9 %     1,577     1,450   8.8 %    
Interest on borrowings     241     267   -9.7 %     484     532   -9.0 %    
Total interest expense     1,068     987   8.2 %     2,061     1,982   4.0 %    
Net interest income     4,080     4,186   -2.5 %     8,255     8,359   -1.2 %    
Provision for loan losses     25     155   -83.9 %     67     195   -65.6 %    
Net interest income after provision for loan losses     4,055     4,031   0.6 %     8,188     8,164   0.3 %    
                             
Noninterest income:                            
Service fees     353     361   -2.2 %     741     740   0.1 %    
Gain on sale of loans held for sale     408     686   -40.5 %     786     1,269   -38.1 %    
Other service fees     208     186   11.8 %     401     362   10.8 %    
Earnings on bank-owned life insurance     103     95   8.4 %     193     191   1.0 %    
Other     58     24   141.7 %     119     51   133.3 %    
Total noninterest income     1,130     1,352   -16.4 %     2,240     2,613   -14.3 %    
                             
Noninterest expense:                            
Salaries and benefits     1,998     1,902   5.0 %     3,945     3,861   2.2 %    
Net occupancy     369     360   2.5 %     798     772   3.4 %    
Equipment     345     306   12.7 %     682     618   10.4 %    
Marketing and public relations     230     207   11.1 %     451     407   10.8 %    
Professional fees     93     184   -49.5 %     270     352   -23.3 %    
Other     697     822   -15.2 %     1,414     1,599   -11.6 %    
Total noninterest expense     3,732     3,781   -1.3 %     7,560     7,609   -0.6 %    
Income before income taxes     1,453     1,602   -9.3 %     2,868     3,168   -9.5 %    
Income taxes     290     494   -41.3 %     574     981   -41.5 %    
Net income     1,163     1,108   5.0 %     2,294     2,187   4.9 %    
Less: Net income attributable to noncontrolling interest     –     –   –       –     –   –      
                             
Net income attributable to Elmira Savings Bank     1,163     1,108   5.0 %     2,294     2,187   4.9 %    
                             
Dividend on preferred stock     –     225   -100.0 %     –     450   -100.0 %    
Income available to common shareholders   $ 1,163   $ 883   31.7 %   $ 2,294   $ 1,737   32.1 %    
                             
                             
Basic earnings per share   $ 0.33   $ 0.27   22.2 %   $ 0.66   $ 0.56   17.9 %    
                             
Diluted earnings per share   $ 0.33   $ 0.27   22.2 %   $ 0.66   $ 0.56   17.9 %    
                             
Weighted average shares outstanding – basic     3,477,210     3,311,799   5.0 %     3,476,037     3,095,219   12.3 %    
                             
Weighted average shares outstanding – diluted     3,491,182     3,328,514   4.9 %     3,490,227     3,113,166   12.1 %    
                             
Dividends per share   $ 0.23   $ 0.23   0.0 %   $ 0.45   $ 0.45   0.0 %    
                             
     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, 2018     June 30, 2017      
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate      
Loans $ 450,018   $ 4,786   4.25 % $ 450,724   $ 4,789   4.24 %  
Short-term investments   479     2   1.39       459     1   0.81      
Securities   40,283     360   3.59       47,115     383   3.25      
Total interest-earning assets   490,780     5,148   4.19       498,298     5,173   4.15      
                               
Noninterest-earning assets   68,385               65,224              
                               
TOTAL ASSETS $ 559,165             $ 563,522              
                               
LIABILITIES AND SHAREHOLDERS’ EQUITY                              
Interest-bearing deposits $ 386,677   $ 827   0.86     $ 378,473   $ 720   0.76      
Borrowings   34,407     241   2.77       42,000     267   2.52      
Total interest-bearing liabilities   421,084     1,068   1.01       420,473     987   0.94      
                               
Noninterest-bearing liabilities   80,595               79,670              
Shareholders’ equity   57,486               63,379              
                               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 559,165             $ 563,522              
Interest rate spread         3.18 %           3.21 %    
Net interest income/margin     $ 4,080   3.32 %       $ 4,186   3.36 %    
                               

ELMIRA SAVINGS BANK      
AVERAGE BALANCES AND INTEREST RATES      
                               
(Dollars in Thousands) For the Six Months Ended      
  June 30, 2018     June 30, 2017      
ASSETS: Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate      
Loans $ 451,681   $ 9,582   4.25 % $ 451,952   $ 9,524   4.22 %  
Short-term investments   456     3   1.36       1,153     3   0.53      
Securities   40,898     731   3.59       48,399     814   3.37      
Total interest-earning assets   493,035     10,316   4.19       501,504     10,341   4.13      
                               
Noninterest-earning assets   63,164               62,457              
                               
TOTAL ASSETS $ 556,199             $ 563,961              
                               
LIABILITIES AND SHAREHOLDERS’ EQUITY                              
Interest-bearing deposits $ 384,263   $ 1,577   0.83     $ 383,352   $ 1,450   0.76      
Borrowings   34,958     484   2.75       42,102     532   2.51      
Total interest-bearing liabilities   419,221     2,061   0.99       425,454     1,982   0.94      
                               
Noninterest-bearing liabilities   79,675               78,517              
Shareholders’ equity   57,303               59,990              
                               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 556,199             $ 563,961              
Interest rate spread         3.20 %           3.19 %    
Net interest income/margin     $ 8,255   3.35 %       $ 8,359   3.34 %    
                               

          Quarter Ended
(Dollars in Thousands, Except Per Share Data)   6/30/2018   3/31/2018   12/31/2017   9/30/2017   6/30/2017  
Operating Data                      
                                   
  Net income $ 1,163   $ 1,131   $ 1,449   $ 1,215   $ 1,108    
  Net interest income   4,080     4,175     4,142     4,047     4,186    
  Provision for loan losses   25     42     580     120     155    
  Non-interest income, ex. Net security gains   1,130     1,110     1,198     1,626     1,352    
  Non-interest expense   3,732     3,828     4,515     3,760     3,781    
                       
Performance Statistics                      
                                   
  Net interest margin   3.32 %   3.38 %   3.31 %   3.27 %   3.36 %  
  Annualized return on average assets   0.83 %   0.83 %   1.03 %   0.84 %   0.79 %  
  Annualized return on average equity   8.11 %   8.03 %   9.04 %   7.32 %   7.01 %  
  Annualized net loan charge-offs to avg loans   0.09 %   0.05 %   0.46 %   0.03 %   0.13 %  
  Net charge-offs   96     51     528     28     144    
  Efficiency ratio   71.6 %   72.4 %   84.6 %   66.3 %   68.3 %  
                       
Per Share Data                      
                                   
  Basic earnings per share $ 0.33   $ 0.32   $ 0.37   $ 0.29   $ 0.27    
  Diluted earnings per share   0.33     0.32     0.37     0.29     0.27    
  Dividend declared per share   0.23     0.22     0.22     0.22     0.23    
  Book value   16.36     16.27     16.26     16.04     15.97    
  Common stock price:                      
    High   20.60     19.95     19.90     20.10     20.71    
    Low   19.29     19.19     18.00     18.86     18.71    
    Close   20.43     19.52     19.48     19.14     19.33    
  Weighted average common shares:                      
    Basic   3,477     3,474     3,467     3,463     3,312    
    Fully diluted   3,491     3,489     3,482     3,478     3,329    
  End-of-period common shares:                      
    Issued   3,593     3,591     3,582     3,579     3,575    
    Treasury   94     94     94     94     94    
                           
    Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.      
                           
Financial Condition Data:                      
General                      
  Total assets $ 562,924   $ 553,259   $ 554,560   $ 565,042   $ 574,332    
  Loans, net   448,690     447,131     454,187     443,543     448,024    
  Intangibles   12,320     12,320     12,320     12,324     12,329    
  Total deposits   468,293     456,322     456,762     454,826     460,140    
                                     
    Noninterest-bearing   76,880     73,540     74,072     75,625     77,027    
                                     
    Savings   73,200     70,574     70,339     68,253     70,668    
    NOW   87,402     86,205     86,799     87,612     86,896    
    Money Market   21,934     22,928     25,363     25,184     24,859    
    Time deposits   208,877     203,075     200,189     198,152     200,690    
    Total interest-bearing deposits   391,413     382,782     382,690     379,201     383,113    
                                   
  Shareholders’ equity   57,299     56,887     56,681     65,590     65,280    
                       
Asset Quality                      
                                   
  Non-performing assets $ 4,560   $ 3,181   $ 2,933   $ 3,793   $ 3,494    
  Non-performing assets to total assets   0.81 %   0.57 %   0.53 %   0.67 %   0.61 %  
  Allowance for loan losses   4,362     4,433     4,442     4,390     4,298    
  Allowance for loan losses to total loans   0.96 %   0.98 %   0.97 %   0.98 %   0.95 %  
  Allowance for loan losses to                      
    non-performing loans   99.18 %   142.59 %   153.97 %   118.46 %   129.15 %  
  Non-performing loans to total loans   0.98 %   0.70 %   0.64 %   0.84 %   0.74 %  
                       
Capitalization                      
                                   
  Shareholders’ equity to total assets   10.18 %   10.28 %   10.22 %   11.61 %   11.37 %  
                           

For further information contact:
Thomas M. Carr, President & CEO
Elmira Savings Bank
333 East Water Street
Elmira, New York  14901
(607) 735-8660
[email protected]