Elmira Savings Bank Reports Second Quarter Earnings
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E-mailELMIRA, NY -- (Marketwired) -- 07/22/15 -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,019,000 and $2,029,000 for the three and six months ended June 30, 2015 compared to $1,099,000 and $2,159,000 for the same periods in 2014.
- Diluted earnings per share were $.29 per share and $.57 per share for the three and six months ended June 30, 2015 compared to $.31 per share and $.61 per share for the same periods in 2014.
- Return on average assets was .72% and .73% for the three and six months ended June 30, 2015 compared to .86% and .85% for the same periods in 2014.
- Return on average equity was 7.39% and 7.34% for the three and six months ended June 30, 2015 compared to 7.95% and 7.89% for the same periods in 2014.
"During the first six months of 2015, despite lower earnings, the Bank experienced an increase in loan originations of 34% over the same period one year ago, resulting in 5% growth in the loan portfolio. Additionally, we have experienced deposit growth of 4% since the beginning of the year," said Thomas M. Carr, President and CEO. Carr continued, "We also have been very pleased with our activity in our Watkins Glen branch, which opened in March."
Net Income
Net income totaled $2,029,000 for the six months ended June 30, 2015, a decrease of $130,000 or 6% from the $2,159,000 of net income recorded for the same period in 2014. This decrease was the net result of a decrease in noninterest income of $93,000, an increase in the provision for loan losses of $61,000, and an increase in noninterest expense of $184,000, offset by an increase in net interest income of $62,000 and a decrease in tax expense of $146,000.
Net income totaled $1,019,000 for the three months ended June 30, 2015, a decrease of $80,000 or 7% from the $1,099,000 recorded for the same period in 2014. This decrease was the net result of a decrease in noninterest income of $39,000, an increase in the provision for loan losses of $65,000, and an increase in noninterest expense of $178,000, offset by an increase in net interest income of $110,000 and a decrease in tax expense of $92,000.
Net income of $1,019,000 for the current quarter ended June 30, 2015 increased $9,000 from net income for the preceding quarter ended March 31, 2015.
Basic and diluted earnings per share for the six months ended June 30, 2015 were $.58 per share and $.57 per share compared to $.64 per share and $.61 per share for the same period in 2014. Basic and diluted earnings per share for the three months ended June 30, 2015 were both $.29 per share compared to $.33 per share and $.31 per share for the same period in 2014.
Net Interest Margin
The net interest margin for the six months ended June 30, 2015 was 3.05% compared to 3.25% for the same period in 2014. The yield on average earning assets was 4.08% for the six months ended June 30, 2015 compared to 4.28% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the six months ended June 30, 2015 compared to 1.22% for the same period in 2014.
The net interest margin for the three months ended June 30, 2015 was 3.04% compared to 3.19% for the same period in 2014. The average yield on earning assets was 4.07% for the three months ended June 30, 2015 compared to 4.22% for the same period in 2014. The average cost of interest-bearing liabilities was 1.19% for the three months ended June 30, 2015 compared to 1.22% for the same period in 2014.
Assets
Total assets increased $26.9 million or 4.9% to $572.9 million at June 30, 2015 compared to $546.0 million at December 31, 2014. Loans, including loans held for sale, increased 5.2% to $440.1 million at June 30, 2015 compared to December 31, 2014. The available-for-sale investment portfolio decreased $7.2 million from December 31, 2014 to June 30, 2015.
Nonperforming Loans
Our nonperforming loans to total loans ratio has decreased to 1.01% at June 30, 2015 from 1.13% at December 31, 2014. Net loan charge-offs to average loans for the six months ended June 30, 2015 of 0.06% decreased from 0.09% for the six months ended June 30, 2014. The allowance for loan losses was 0.92% of total loans at June 30, 2015 and 0.95% of total loans at December 31, 2014.
Liabilities
Deposits total $437.7 million at June 30, 2015, an increase of $15.1 million or 3.6%. The $15.1 million increase consists of a $7.9 million increase in NOW accounts, a $6.7 million increase in noninterest-bearing accounts, a $0.2 million increase in money market accounts, and a $0.8 million increase in time deposits, partially offset by a $0.5 million decrease in savings accounts. Borrowed funds increased by $12.0 million or 19.4%.
Shareholders' Equity
Shareholders' equity decreased $1.3 million to $54.2 million at June 30, 2015 compared to December 31, 2014. The decrease is primarily the result of the repurchase of a warrant in May 2015 that had been issued to the United States Treasury Department at a purchase price of $1.5 million. The current level of shareholders' equity equates to a book value per share of $16.34 at June 30, 2015, compared to $16.91 at December 31, 2014. Dividends paid to common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2015 and 2014.
Elmira Savings Bank, with $572.9 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 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; a loan center in Cortland County, NY; 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,
------------- ------------- --------
2015 2014 % Change
------------- ------------- --------
ASSETS
Cash and due from banks $ 17,407 $ 7,959 118.7%
Federal funds sold and other short-
term investments 153 606 -74.8%
------------- ------------- --------
Total cash and cash equivalents 17,560 8,565 105.0%
Securities available for sale, at
fair value 58,422 65,624 -11.0%
Securities held to maturity - fair
value $9,393 at June 30, 2015 and
$7,641 at December 31, 2014 9,213 7,389 24.7%
Federal Reserve and Federal Home
Loan Bank (FHLB) stock, at cost 11,647 11,182 4.2%
Loans held for sale 4,064 787 416.4%
Loans receivable 436,021 417,359 4.5%
Less: Allowance for loan losses 4,028 3,974 1.4%
------------- ------------- --------
Net loans 431,993 413,385 4.5%
Premises and equipment, net 10,383 9,475 9.6%
Bank-owned life insurance 12,990 12,790 1.6%
Accrued interest receivable 1,505 1,566 -3.9%
Intangible assets, net 92 125 -26.4%
Goodwill 12,320 12,320 0.0%
Other assets 2,701 2,761 -2.2%
------------- ------------- --------
Total assets $ 572,890 $ 545,969 4.9%
============= ============= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 437,663 $ 422,561 3.6%
Borrowings 74,000 62,000 19.4%
Other liabilities 6,994 5,915 18.2%
------------- ------------- --------
Total liabilities 518,657 490,476 5.7%
------------- ------------- --------
Shareholders' equity:
Preferred stock, $1,000 liquidation
value per issued share; 5,000,000
shares authorized; 10,000 shares
issued at June 30, 2015 and at
December 31, 2014 9,700 9,700 0.0%
Common stock, $1 par value;
authorized 5,000,000 shares;
2,820,745 shares issued at June 30,
2015 and 2,809,364 shares issued at
December 31, 2014 2,821 2,809 0.4%
Additional paid-in capital 41,128 42,365 -2.9%
Retained earnings 3,097 2,769 11.8%
Treasury stock, at cost - 98,118
shares at June 30, 2015 and 104,418
shares at December 31, 2014 (2,907) (3,053) -4.8%
Accumulated other comprehensive
income 340 849 -60.0%
------------- ------------- --------
Total Elmira Savings Bank
shareholders' equity 54,179 55,439 -2.3%
Noncontrolling interest 54 54 0.0%
------------- ------------- --------
Total shareholders' equity 54,233 55,493 -2.3%
------------- ------------- --------
Total liabilities and
shareholders' equity $ 572,890 $ 545,969 4.9%
============= ============= ========
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) 2015 2014 Change 2015 2014 Change
---------- ---------- ------ ---------- ---------- ------
Interest and
dividend
income:
Interest and
fees on loans $ 4,570 $ 4,302 6.2% $ 9,032 $ 8,699 3.8%
Interest and
dividends on
securities
Taxable 330 412 -19.9% 732 876 -16.4%
Non-taxable 233 204 14.2% 464 408 13.7%
---------- ---------- ------ ---------- ---------- ------
Total
interest
and
dividend
income 5,133 4,918 4.4% 10,228 9,983 2.5%
---------- ---------- ------ ---------- ---------- ------
Interest
expense:
Interest on
deposits 741 745 -0.5% 1,468 1,487 -1.3%
Interest on
borrowings 563 454 24.0% 1,106 904 22.3%
---------- ---------- ------ ---------- ---------- ------
Total
interest
expense 1,304 1,199 8.8% 2,574 2,391 7.7%
---------- ---------- ------ ---------- ---------- ------
Net interest
income 3,829 3,719 3.0% 7,654 7,592 0.8%
Provision for
loan losses 140 75 86.7% 190 129 47.3%
---------- ---------- ------ ---------- ---------- ------
Net interest
income after
provision for
loan losses 3,689 3,644 1.2% 7,464 7,463 0.0%
---------- ---------- ------ ---------- ---------- ------
Noninterest
income:
Service fees 368 365 0.8% 723 694 4.2%
Gain on sale
of loans held
for sale 457 345 32.5% 811 793 2.3%
Gain on sale
of securities 80 205 -61.0% 284 421 -32.5%
Other service
fees 189 176 7.4% 358 340 5.3%
Earnings on
bank-owned
life
insurance 106 131 -19.1% 200 222 -9.9%
Other 35 52 -32.7% 94 93 1.1%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
income 1,235 1,274 -3.1% 2,470 2,563 -3.6%
---------- ---------- ------ ---------- ---------- ------
Noninterest
expense:
Salaries and
benefits 1,751 1,732 1.1% 3,545 3,571 -0.7%
Net occupancy 335 331 1.2% 727 747 -2.7%
Equipment 254 250 1.6% 508 500 1.6%
Marketing and
public
relations 215 204 5.4% 426 404 5.4%
Professional
fees 223 195 14.4% 403 356 13.2%
Other 744 632 17.7% 1,482 1,329 11.5%
---------- ---------- ------ ---------- ---------- ------
Total
noninterest
expense 3,522 3,344 5.3% 7,091 6,907 2.7%
---------- ---------- ------ ---------- ---------- ------
Income before
income taxes 1,402 1,574 -10.9% 2,843 3,119 -8.8%
Income taxes 383 475 -19.4% 814 960 -15.2%
---------- ---------- ------ ---------- ---------- ------
Net income 1,019 1,099 -7.3% 2,029 2,159 -6.0%
Less: Net income
attributable to
noncontrolling
interest - - - - - -
---------- ---------- ------ ---------- ---------- ------
Net income
attibutable to
Elmira Savings
Bank 1,019 1,099 -7.3% 2,029 2,159 -6.0%
Dividend on
preferred stock 225 225 0.0% 450 450 0.0%
---------- ---------- ------ ---------- ---------- ------
Income available
to common
shareholders $ 794 $ 874 -9.2% $ 1,579 $ 1,709 -7.6%
========== ========== ====== ========== ========== ======
Basic earnings
per share $ 0.29 $ 0.33 -12.1% $ 0.58 $ 0.64 -9.4%
========== ========== ====== ========== ========== ======
Diluted earnings
per share $ 0.29 $ 0.31 -6.5% $ 0.57 $ 0.61 -6.6%
========== ========== ====== ========== ========== ======
Weighted average
shares
outstanding -
basic 2,706,983 2,674,098 1.2% 2,703,787 2,665,640 1.4%
========== ========== ====== ========== ========== ======
Weighted average
shares
outstanding -
diluted 2,776,116 2,798,180 -0.8% 2,793,883 2,794,030 0.0%
========== ========== ====== ========== ========== ======
Dividends per
share $ 0.23 $ 0.23 0.0% $ 0.46 $ 0.46 0.0%
========== ========== ====== ========== ========== ======
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands) For the Six Months Ended
----------------------------------------------------
June 30, 2015 June 30, 2014
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
-------- -------- ------- -------- -------- -------
Loans $422,517 $ 9,032 4.28% $389,447 $ 8,699 4.48%
Short-term investments 1,273 1 0.02 1,028 - 0.02
Securities 78,350 1,195 3.06 76,875 1,284 3.34
-------- -------- ------- -------- -------- -------
Total interest-earning
assets 502,140 10,228 4.08 467,350 9,983 4.28
-------- -------- ------- -------- -------- -------
Noninterest-earning
assets 57,624 43,688
-------- --------
TOTAL ASSETS $559,764 $511,038
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits $359,861 $ 1,468 0.82 $335,755 $ 1,487 0.89
Borrowings 72,917 1,106 3.01 57,141 904 3.14
-------- -------- ------- -------- -------- -------
Total interest-bearing
liabilities 432,778 2,574 1.19 392,896 2,391 1.22
-------- -------- ------- -------- -------- -------
Noninterest-bearing
liabilities 71,241 62,957
Shareholders' equity 55,745 55,185
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $559,764 $511,038
======== ========
Interest rate spread 2.89% 3.06%
======= =======
Net interest
income/margin $ 7,654 3.05% $ 7,592 3.25%
======== ======= ======== =======
ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands) For the Three Months Ended
----------------------------------------------------
June 30, 2015 June 30, 2014
------------------------- -------------------------
Average Average Average Average
ASSETS: Balance Interest Rate Balance Interest Rate
-------- -------- ------- -------- -------- -------
Loans $427,499 $ 4,570 4.27% $390,122 $ 4,302 4.41%
Short-term investments 1,040 - 0.03 1,000 - 0.02
Securities 74,952 563 3.01 74,772 616 3.30
-------- -------- ------- -------- -------- -------
Total interest-earning
assets 503,491 5,133 4.07 465,894 4,918 4.22
-------- -------- ------- -------- -------- -------
Noninterest-earning
assets 61,047 44,874
-------- --------
TOTAL ASSETS $564,538 $510,768
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits $361,447 $ 741 0.82 $336,018 $ 745 0.89
Borrowings 74,000 563 3.01 55,882 454 3.22
-------- -------- ------- -------- -------- -------
Total interest-bearing
liabilities 435,447 1,304 1.19 391,900 1,199 1.22
-------- -------- ------- -------- -------- -------
Noninterest-bearing
liabilities 73,728 63,452
Shareholders' equity 55,363 55,416
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $564,538 $510,768
======== ========
Interest rate spread 2.88% 3.00%
======= =======
Net interest
income/margin $ 3,829 3.04% $ 3,719 3.19%
======== ======= ======== =======
Quarter Ended
------------------------------------------------------
(Dollars in
Thousands, Except
Per Share Data) 6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014
--------- --------- ---------- --------- ---------
Operating Data
Net income $ 1,019 $ 1,010 $ 1,031 $ 475 $ 1,099
Net interest
income 3,829 3,825 4,018 3,802 3,719
Provision for loan
losses 140 50 140 138 75
Net security gains 80 204 - - 205
Non-interest
income, ex. Net
security gains 1,155 1,031 1,039 1,155 1,069
Non-interest
expense 3,522 3,569 3,406 4,190 3,344
Performance
Statistics
Net interest
margin 3.04% 3.07% 3.24% 3.18% 3.19%
Annualized return
on average assets 0.72% 0.74% 0.76% 0.36% 0.86%
Annualized return
on average equity 7.39% 7.29% 7.37% 3.36% 7.95%
Annualized net
loan charge-offs
to avg loans 0.11% 0.02% 0.09% -0.01% 0.15%
Net charge-offs
(recoveries) 114 21 94 (7) 143
Efficiency ratio 69.5% 70.5% 67.4% 84.5% 67.0%
Per Share Data
Basic earnings per
share $ 0.29 $ 0.29 $ 0.30 $ 0.09 $ 0.33
Diluted earnings
per share 0.29 0.28 0.29 0.09 0.31
Dividend declared
per share 0.23 0.23 0.23 0.23 0.23
Book value 16.34 16.96 16.91 16.76 16.87
Common stock
price:
High 20.82 23.00 23.00 24.54 24.78
Low 19.43 19.99 20.50 20.16 21.92
Close 20.09 20.40 23.00 22.25 24.50
Weighted average
common shares:
Basic 2,707 2,701 2,693 2,684 2,674
Fully diluted 2,776 2,812 2,808 2,803 2,798
End-of-period
common shares:
Issued 2,821 2,813 2,809 2,809 2,799
Treasury 98 98 104 104 104
Financial Condition
Data:
General
Total assets $ 572,890 $ 562,185 $ 545,969 $ 533,726 $ 515,053
Loans, net 431,993 416,235 413,385 406,168 391,611
Intangibles 12,412 12,428 12,445 12,464 12,486
Total deposits 437,663 426,075 422,561 405,681 399,219
Noninterest-
bearing 68,707 64,442 62,019 68,871 61,221
Savings 64,758 63,776 65,287 62,898 63,433
NOW 86,835 78,169 78,920 75,246 73,116
Money Market 20,678 22,112 20,512 21,498 22,702
Time deposits 196,685 197,576 195,823 177,168 178,747
Total interest-
bearing
deposits 368,956 361,633 360,542 336,810 337,998
Shareholders'
equity 54,233 55,818 55,493 55,088 55,202
Asset Quality
Non-performing
assets $ 4,430 $ 4,790 $ 4,699 $ 4,575 $ 4,281
Non-performing
assets to total
assets 0.77% 0.85% 0.86% 0.86% 0.83%
Allowance for loan
losses 4,028 4,002 3,974 3,928 3,783
Allowance for loan
losses to total
loans 0.92% 0.95% 0.95% 0.96% 0.96%
Allowance for loan
losses to non-
performing loans 91.75% 83.55% 84.57% 88.61% 89.90%
Non-performing
loans to total
loans 1.01% 1.14% 1.13% 1.08% 1.06%
Capitalization
Shareholders'
equity to total
assets 9.47% 9.93% 10.16% 10.32% 10.72%
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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