Elmira Savings Bank Reports 2016 Earnings
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E-mailNEW YORK, NY -- (Marketwired) -- 01/25/17 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,042,000 and $4,337,000 for the three and twelve months ended December 31, 2016 compared to $1,036,000 and $4,122,000 for the same periods in 2015.
- Diluted earnings per share were $.30 per share and $1.25 per share for the three and twelve months ended December 31, 2016 compared to $.30 per share and $1.17 per share for the same periods in 2015.
- Return on average assets (annualized) was .73% and .76% for the three and twelve months ended December 31, 2016 compared to .73% for both of the same periods in 2015.
- Return on average equity (annualized) was 7.38% and 7.77% for the three and twelve months ended December 31, 2016 compared to 7.46% and 7.43% for the same periods in 2015.
Net Income
Net income totaled $1,042,000 for the three months ended December 31, 2016, an increase of $6,000 or 0.6% from the $1,036,000 recorded for the same period in 2015. This increase was the net result of a decrease in the provision for loan losses of $95,000, an increase in net interest income of $27,000, and an increase in noninterest income of $13,000, offset by an increase in noninterest expense of $111,000 and an increase in income tax expense of $18,000.
Net income totaled $4,337,000 for the twelve months ended December 31, 2016, an increase of $215,000 or 5.2% from the $4,122,000 of net income recorded for the same period in 2015. This increase was the net result of an increase in net interest income of $886,000, an increase in noninterest income of $509,000, and a decrease in the provision for loan losses of $143,000, offset by an increase in noninterest expense of $1.0 million and an increase in income tax expense of $314,000.
"The company has continued to make progress in 2016. Year over year, we have increased our noninterest income by 9%, our net interest income by 6%, and have expanded our net interest margin by 5%" said Thomas M. Carr, President and CEO. Carr continued, "We are pleased with the increase in core earnings supported by strong mortgage loan origination volume and a 7% growth in deposits."
Basic and diluted earnings per share for the twelve months ended December 31, 2016 were $1.26 per share and $1.25 per share compared to $1.19 per share and $1.17 per share for the same period in 2015. Both basic and diluted earnings per share for the three months ended December 31, 2016 were $.30 per share and $.30 per share for both basic and diluted earnings per share for the same period in 2015.
Net Interest Margin
The net interest margin for the twelve months ended December 31, 2016 was 3.21% compared to 3.07% for the same period in 2015. The yield on average earning assets was 4.05% for the twelve months ended December 31, 2016 compared to 4.06% for the same period in 2015. The average cost of interest-bearing liabilities was 1.00% for the twelve months ended December 31, 2016 compared to 1.16% for the same period in 2015.
The net interest margin for the three months ended December 31, 2016 was 3.23% compared to 3.19% for the same period in 2015. The average yield on earning assets was 4.04% for the three months ended December 31, 2016 compared to 4.09% for the same period in 2015. The average cost of interest-bearing liabilities was 0.95% for the three months ended December 31, 2016 compared to 1.07% for the same period in 2015.
Assets
Total assets increased $12.1 million or 2.2% to $573.5 million at December 31, 2016 compared to $561.3 million at December 31, 2015. Loans receivable increased 1.0% to $455.9 million at December 31, 2016 compared to December 31, 2015. The available-for-sale investment portfolio decreased $10.1 million from December 31, 2015 to December 31, 2016.
Nonperforming Loans
Our nonperforming loans to total loans ratio was 1.11% at December 31, 2016 compared to 1.05% at December 31, 2015. Net loan charge-offs to average loans for the twelve months ended December 31, 2016 of 0.08% decreased from 0.11% for the twelve months ended December 31, 2015. The allowance for loan losses was 0.94% of total loans at December 31, 2016 and 0.92% of total loans at December 31, 2015.
Liabilities
Deposits total $469.5 million at December 31, 2016, an increase of $29.1 million or 6.6%. The $29.1 million increase consists of a $17.8 million increase in time deposits, a $5.5 million increase in money market accounts, a $3.7 million increase in savings accounts, and a $3.4 million increase in noninterest-bearing accounts, offset by a $1.3 million decrease in interest-bearing transaction accounts. Borrowed funds decreased by $17.5 million or 29.4%.
Shareholders' Equity
Shareholders' equity increased $1.0 million to $55.7 million at December 31, 2016 compared to December 31, 2015. The current level of shareholders' equity equates to a book value per share of $16.74 at December 31, 2016, compared to $16.53 at December 31, 2015. Dividends paid to common shareholders were $0.23 and $0.92 for the three and twelve months ended both December 31, 2016 and 2015.
Elmira Savings Bank, with $573.5 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) December 31, December 31,
------------ ------------ --------
2016 2015 % Change
------------ ------------ --------
ASSETS
Cash and due from banks $ 24,195 $ 5,352 352.1%
Federal funds sold and other short-
term investments 99 102 -2.9%
------------ ------------ --------
Total cash and cash equivalents 24,294 5,454 345.4%
Securities available for sale, at fair
value 32,581 42,709 -23.7%
Securities held to maturity - fair
value $8,679 at December 31, 2016 and
$9,010 at December 31, 2015 8,519 9,003 -5.4%
Federal Reserve and Federal Home Loan
Bank (FHLB) stock, at cost 9,811 11,108 -11.7%
Loans held for sale 3,597 3,630 -0.9%
Loans receivable 455,931 451,368 1.0%
Less: Allowance for loan losses 4,263 4,148 2.8%
------------ ------------ --------
Net loans 451,668 447,220 1.0%
Premises and equipment, net 12,634 12,130 4.2%
Bank-owned life insurance 13,592 13,188 3.1%
Accrued interest receivable 1,552 1,541 0.7%
Intangible assets, net 20 61 -67.2%
Goodwill 12,320 12,320 0.0%
Other assets 2,862 2,980 -4.0%
------------ ------------ --------
Total assets $ 573,450 $ 561,344 2.2%
============ ============ ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 469,547 $ 440,472 6.6%
Borrowings 42,000 59,525 -29.4%
Other liabilities 6,180 6,576 -6.0%
------------ ------------ --------
Total liabilities 517,727 506,573 2.2%
------------ ------------ --------
Shareholders' equity:
Preferred stock, $1,000 liquidation
value per issued share; 5,000,000
shares authorized; 10,000 shares
issued at December 31, 2016 and at
December 31, 2015 9,700 9,700 0.0%
Common stock, $1 par value; authorized
5,000,000 shares; 2,844,670 shares
issued at December 31, 2016 and
2,820,745 shares issued at December
31, 2015 2,845 2,821 0.9%
Additional paid-in capital 41,644 41,243 1.0%
Retained earnings 4,407 3,488 26.3%
Treasury stock, at cost - 98,118
shares at December 31, 2016 and
December 31, 2015 (2,907) (2,907) 0.0%
Accumulated other comprehensive income (19) 373 -105.1%
------------ ------------ --------
Total Elmira Savings Bank
shareholders' equity 55,670 54,718 1.7%
Noncontrolling interest 53 53 0.0%
------------ ------------ --------
Total shareholders' equity 55,723 54,771 1.7%
------------ ------------ --------
Total liabilities and shareholders'
equity $ 573,450 $ 561,344 2.2%
============ ============ ========
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) 2016 2015 Change 2016 2015 Change
---------- ---------- ------ ---------- ---------- ------
Interest and
dividend
income:
Interest and
fees on
loans $ 4,751 $ 4,762 -0.2% $ 19,056 $ 18,418 3.5%
Interest and
dividends on
securities
Taxable 242 304 -20.4% 1,000 1,367 -26.8%
Non-taxable 205 240 -14.6% 832 949 -12.3%
---------- ---------- ------ ---------- ---------- ------
Total
interest
and
dividend
income 5,198 5,306 -2.0% 20,888 20,734 0.7%
---------- ---------- ------ ---------- ---------- ------
Interest
expense:
Interest on
deposits 773 762 1.4% 3,055 3,016 1.3%
Interest on
borrowings 270 416 -35.1% 1,313 2,084 -37.0%
---------- ---------- ------ ---------- ---------- ------
Total
interest
expense 1,043 1,178 -11.5% 4,368 5,100 -14.4%
---------- ---------- ------ ---------- ---------- ------
Net interest
income 4,155 4,128 0.7% 16,520 15,634 5.7%
Provision for
loan losses 175 270 -35.2% 487 630 -22.7%
---------- ---------- ------ ---------- ---------- ------
Net interest
income after
provision for
loan losses 3,980 3,858 3.2% 16,033 15,004 6.9%
---------- ---------- ------ ---------- ---------- ------
Noninterest
income:
Service fees 331 372 -11.0% 1,420 1,471 -3.5%
Gain on sale
of loans
held for
sale 771 701 10.0% 3,061 2,382 28.5%
Gain on sale
of
securities - - - 180 284 -36.6%
Other service
fees 172 184 -6.5% 728 716 1.7%
Earnings on
bank-owned
life
insurance 99 100 -1.0% 403 398 1.3%
Other 22 25 -12.0% 108 140 -22.9%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
income 1,395 1,382 0.9% 5,900 5,391 9.4%
---------- ---------- ------ ---------- ---------- ------
Noninterest
expense:
Salaries and
benefits 1,944 1,917 1.4% 7,927 7,324 8.2%
Net occupancy 341 337 1.2% 1,416 1,383 2.4%
Equipment 314 281 11.7% 1,200 1,061 13.1%
Marketing and
public
relations 215 197 9.1% 794 832 -4.6%
Professional
fees (5) 145 -103.4% 517 773 -33.1%
Other 1,079 900 19.9% 3,748 3,220 16.4%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
expense 3,888 3,777 2.9% 15,602 14,593 6.9%
---------- ---------- ------ ---------- ---------- ------
Income before
income taxes 1,487 1,463 1.6% 6,331 5,802 9.1%
Income taxes 440 422 4.3% 1,989 1,675 18.7%
---------- ---------- ------ ---------- ---------- ------
Net income 1,047 1,041 0.6% 4,342 4,127 5.2%
Less: Net
income
attributable
to
noncontrolling
interest 5 5 0.0% 5 5 0.0%
---------- ---------- ------ ---------- ---------- ------
Net income
attibutable to
Elmira Savings
Bank 1,042 1,036 0.6% 4,337 4,122 5.2%
Dividend on
preferred
stock 225 225 0.0% 900 900 0.0%
---------- ---------- ------ ---------- ---------- ------
Income
available to
common
shareholders $ 817 $ 811 0.7% $ 3,437 $ 3,222 6.7%
========== ========== ====== ========== ========== ======
Basic earnings
per share $ 0.30 $ 0.30 0.0% $ 1.26 $ 1.19 5.9%
========== ========== ====== ========== ========== ======
Diluted
earnings per
share $ 0.30 $ 0.30 0.0% $ 1.25 $ 1.17 6.8%
========== ========== ====== ========== ========== ======
Weighted
average shares
outstanding -
basic 2,731,266 2,712,052 0.7% 2,772,243 2,707,491 2.4%
========== ========== ====== ========== ========== ======
Weighted
average shares
outstanding -
diluted 2,749,828 2,731,078 0.7% 2,739,668 2,762,332 -0.8%
========== ========== ====== ========== ========== ======
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 Three Months Ended
----------------------------------------------------
December 31, 2016 December 31, 2015
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
-------- -------- ------- -------- -------- -------
Loans $458,772 $ 4,751 4.12% $447,731 $ 4,762 4.23%
Short-term investments 789 - 0.17 177 - 0.10
Securities 52,464 447 3.39 67,996 544 3.19
-------- -------- ------- -------- -------- -------
Total interest-earning
assets 512,025 5,198 4.04 515,904 5,306 4.09
-------- -------- ------- -------- -------- -------
Noninterest-earning
assets 58,067 47,119
-------- --------
TOTAL ASSETS $570,092 $563,023
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits $394,401 $ 773 0.78 $369,180 $ 762 0.82
Borrowings 42,000 270 2.51 64,134 416 2.54
-------- -------- ------- -------- -------- -------
Total interest-bearing
liabilities 436,401 1,043 0.95 433,314 1,178 1.07
-------- -------- ------- -------- -------- -------
Noninterest-bearing
liabilities 77,531 74,581
Shareholders' equity 56,160 55,128
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $570,092 $563,023
======== ========
Interest rate spread 3.09% 3.02%
======= =======
Net interest
income/margin $ 4,155 3.23% $ 4,128 3.19%
======== ======= ======== =======
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands) For the Twelve Months Ended
----------------------------------------------------
December 31, 2016 December 31, 2015
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
-------- -------- ------- -------- -------- -------
Loans $458,840 $ 19,056 4.14% $433,397 $ 18,418 4.24%
Short-term investments 586 1 0.18 847 - 0.03
Securities 54,449 1,831 3.36 75,228 2,316 3.08
-------- -------- ------- -------- -------- -------
Total interest-earning
assets 513,875 20,888 4.05 509,472 20,734 4.06
-------- -------- ------- -------- -------- -------
Noninterest-earning
assets 53,301 54,990
-------- --------
TOTAL ASSETS $567,176 $564,462
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits $386,818 $ 3,055 0.79 $365,142 $ 3,016 0.83
Borrowings 48,788 1,313 2.65 70,773 2,084 2.90
-------- -------- ------- -------- -------- -------
Total interest-bearing
liabilities 435,606 4,368 1.00 435,915 5,100 1.16
-------- -------- ------- -------- -------- -------
Noninterest-bearing
liabilities 75,782 73,103
Shareholders' equity 55,788 55,444
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $567,176 $564,462
======== ========
Interest rate spread 3.05% 2.90%
======= =======
Net interest
income/margin $ 16,520 3.21% $ 15,634 3.07%
======== ======= ======== =======
Quarter Ended
(Dollars in
Thousands, Except
Per Share Data) 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015
---------- ---------- ---------- ---------- ----------
Operating Data
Net income $ 1,042 $ 1,202 $ 1,057 $ 1,036 $ 1,036
Net interest income 4,155 4,211 4,054 4,100 4,128
Provision for loan
losses 175 87 85 140 270
Net security gains - - - 180 -
Non-interest
income, ex. Net
security gains 1,395 1,716 1,438 1,171 1,382
Non-interest
expense 3,888 3,976 3,891 3,847 3,777
Performance
Statistics
Net interest margin 3.23% 3.24% 3.17% 3.19% 3.19%
Annualized return
on average assets 0.73% 0.84% 0.75% 0.74% 0.73%
Annualized return
on average equity 7.38% 8.54% 7.65% 7.52% 7.46%
Annualized net loan
charge-offs to avg
loans 0.20% 0.05% 0.01% 0.07% 0.18%
Net charge-offs
(recoveries) 231 53 14 74 204
Efficiency ratio 70.1% 67.1% 70.8% 70.6% 68.5%
Per Share Data
Basic earnings per
share $ 0.30 $ 0.36 $ 0.31 $ 0.30 $ 0.30
Diluted earnings
per share 0.30 0.36 0.30 0.30 0.30
Dividend declared
per share 0.23 0.23 0.23 0.23 0.23
Book value 16.74 16.80 16.69 16.59 16.53
Common stock price:
High 22.25 21.50 20.10 20.55 21.13
Low 18.50 18.85 18.06 16.83 18.41
Close 20.45 19.91 19.66 18.01 19.88
Weighted average
common shares:
Basic 2,731 2,724 2,718 2,716 2,712
Fully diluted 2,750 2,741 2,735 2,733 2,731
End-of-period
common shares:
Issued 2,845 2,839 2,832 2,828 2,821
Treasury 98 98 98 98 98
Financial Condition
Data:
General
Total assets $ 573,450 $ 567,450 $ 574,721 $ 560,020 $ 561,344
Loans, net 451,668 455,251 463,104 452,718 447,220
Intangibles 12,340 12,349 12,360 12,371 12,381
Total deposits 469,547 463,414 470,462 443,552 440,472
Noninterest-
bearing 70,330 72,102 70,803 65,165 66,964
Savings 70,621 69,019 69,159 67,295 66,914
NOW 85,822 86,787 121,875 105,094 87,083
Money Market 28,889 25,715 25,172 25,281 23,382
Time deposits 213,885 209,791 183,453 180,717 196,129
Total interest-
bearing deposits 399,217 391,312 399,659 378,387 373,508
Shareholders'
equity 55,723 55,792 55,382 55,039 54,771
Asset Quality
Non-performing
assets $ 5,289 $ 5,345 $ 5,622 $ 5,328 $ 4,943
Non-performing
assets to total
assets 0.92% 0.94% 0.98% 0.95% 0.88%
Allowance for loan
losses 4,263 4,319 4,285 4,214 4,148
Allowance for loan
losses to total
loans 0.94% 0.94% 0.92% 0.92% 0.92%
Allowance for loan
losses to non-
performing loans 84.80% 85.00% 80.41% 83.69% 87.66%
Non-performing
loans to total
loans 1.11% 1.12% 1.15% 1.10% 1.05%
Capitalization
Shareholders'
equity to total
assets 9.72% 9.83% 9.64% 9.83% 9.76%
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
Source: Elmira Savings Bank
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