Elmira Savings Bank Reports First Quarter Earnings

Marketwired

ELMIRA, NY--(Marketwired - Apr 23, 2013) - Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income increased to $1,192,000 for the three months ended March 31, 2013 compared to $1,158,000 for the same period in 2012.

  • Diluted earnings per share were $.32 per share for the three months ended March 31, 2013, the same as the same period in 2012.

  • Return on average assets was .91% for the three months ended March 31, 2013 compared to .90% for the same period in 2012.

  • Return on average equity was 7.26% for the three months ended March 31, 2013 compared to 7.12% for the same period in 2012.

  • Noninterest income increased to $1,485,000 for the three months ended March 31, 2013 compared to $1,250,000 for the same period in 2012. This represents an increase of 19% for the three months ended March 31, 2013.

"We are pleased to have a strong start to 2013," said Michael P. Hosey, President and Chief Executive Officer. Hosey continued, "During the first quarter, our loan volume has remained strong and we expanded our geographic footprint with our expansion into Erwin, NY, in January." 

Net Income

Net income totaled $1,192,000 for the three months ended March 31, 2013, an increase of $34,000 or 3% from the $1,158,000 recorded for the same period in 2012. This modest increase was the result of an increase in noninterest income of $235,000 partially offset by an increase of $161,000 in noninterest expense.

Basic and diluted earnings per share for the three months ended March 31, 2013 were $.32 per share, the same as the first quarter of 2012.

Net Interest Margin

The net interest margin for the three months ended March 31, 2013 was 3.32% compared to 3.40% for the first quarter of 2012. The yield on average earning assets was 4.46% for the three months ended March 31, 2013 compared to 4.83% for the same period in 2012. The average cost of interest-bearing liabilities was 1.32% for the three months ended March 31, 2013 compared to 1.59% for the three months ended March 31, 2012.

Assets

Total assets decreased $26.0 million or 5% to $510.9 million at March 31, 2013 compared to $536.9 million at December 31, 2012. Loans receivable decreased 1% to $374.5 million at March 31, 2013 compared to December 31, 2012. The available-for-sale investment portfolio decreased $4.0 million from December 31, 2012 to March 31, 2013.

"At the end of the first quarter, the Bank redeemed $10.5 million of preferred stock. Despite the reduction in capital, the Bank continues to maintain strong capital ratios. The redemption will reduce our preferred dividends and help to increase our earnings per common shareholder in future periods," said Michael P. Hosey, President and CEO. Hosey continued, "The first quarter also evidenced depositors using excess funds to extinguish debt or reenter the equity markets."

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to .99% at March 31, 2013 from 1.02% at December 31, 2012. Net loan charge-offs to average loans for the three months ended March 31, 2013 of .21% increased from .01% for the twelve months ended December 31, 2012. The allowance for loan losses was .99% of total loans at March 31, 2013 and at December 31, 2012.

Liabilities

Deposits total $395.1 million at March 31, 2013, a decrease of $14.5 million or 3.5%.

Shareholders' Equity

Shareholders' equity decreased $10.2 million to $56.7 million at March 31, 2013 compared to December 31, 2012. The decrease in shareholders' equity is attributable to the Bank redeeming $10.5 million of preferred stock issued to the United States Treasury Department through the Small Business Lending Fund. The current level of shareholders' equity equates to a book value per share of $18.13 at March 31, 2013, compared to $18.50 at December 31, 2012. Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2013 compared to $0.21 for the same period in 2012. 

Elmira Savings Bank, with $510.9 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; and a loan center in Cortland 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,        
    2013     2012     % Change  
ASSETS                      
                       
Cash and due from banks   $ 20,664     $ 39,641     -47.9 %
Federal funds sold and other short-term investments     524       684     -23.4 %
  Total cash and cash equivalents     21,188       40,325     -47.5 %
                       
Securities available for sale, at fair value     62,891       66,875     -6.0 %
Securities held to maturity - fair value $6,334 at March 31, 2013, and $5,853 at December 31, 2012     6,002       5,521     8.7 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost     9,679       9,178     5.5 %
                       
Loans held for sale     2,471       3,167     -22.0 %
                       
Loans receivable     374,477       378,108     -1.0 %
Less: Allowance for loan losses     3,724       3,740     -0.4 %
  Net loans     370,753       374,368     -1.0 %
                       
Premises and equipment, net     8,043       7,947     1.2 %
Bank-owned life insurance     12,078       11,988     0.8 %
Accrued interest receivable     1,575       1,529     3.0 %
Intangible assets, net     289       316     -8.5 %
Goodwill     12,320       12,320     0.0 %
Other real estate owned     137       125     9.6 %
Other assets     3,489       3,277     6.5 %
  Total assets   $ 510,915     $ 536,936     -4.8 %
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
                       
Deposits   $ 395,091     $ 409,565     -3.5 %
Borrowings     54,000       54,000     0.0 %
Other liabilities     5,147       6,462     -20.3 %
  Total liabilities     454,238       470,027     -3.4 %
                       
Shareholders' equity:                      
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares authorized; 13,515 shares issued at March 31, 2013 and at 24,063 shares issued at December 31, 2012     13,215       23,763     -44.4 %
Common stock, $1 par value; authorized 5,000,000 shares; 2,509,865 shares issued at March 31, 2013 and 2,454,840 shares issued at December 31, 2012     2,510       2,455     2.2 %
Additional paid-in capital     41,470       41,448     0.1 %
Retained earnings     1,109       868     27.8 %
Treasury stock, at cost - 116,268 shares at March 31, 2013 and 125,865 shares at December 31, 2012     (3,327 )     (3,548 )   -6.2 %
Accumulated other comprehensive income     1,644       1,872     -12.2 %
  Total Elmira Savings Bank shareholders' equity     56,621       66,858     -15.3 %
Noncontrolling interest     56       51     9.8 %
  Total shareholders' equity     56,677       66,909     -15.3 %
  Total liabilities and shareholders' equity   $ 510,915     $ 536,936     -4.8 %
                         
   
   
ELMIRA SAVINGS BANK  
CONSOLIDATED STATEMENT OF INCOME  
(unaudited)  
               
    Three Months Ended  
    March 31,  
(in thousands, except for per share data)   2013   2012   % Change  
                   
Interest and Dividend Income:                  
  Interest and fees on loans   $ 4,473   $ 4,574   -2.2 %
  Interest and dividends on securities                  
    Taxable     447     575   -22.3 %
    Non-taxable     185     200   -7.5 %
    Total interest and dividend income     5,105     5,349   -4.6 %
                   
Interest Expense:                  
  Interest on deposits     829     947   -12.5 %
  Interest expense on borrowings     477     634   -24.8 %
    Total interest expense     1,306     1,581   -17.4 %
Net interest income     3,799     3,768   0.8 %
Provision for loan losses     180     125   44.0 %
Net interest income after provision for loan losses     3,619     3,643   -0.7 %
                   
Noninterest Income:                  
  Service fees     316     322   -1.9 %
  Net gain on sale of loans     848     656   29.3 %
  Net gain on sale of securities     61     -      
  Other service fees     154     164   -6.1 %
  Earnings on bank-owned life insurance     90     82   9.8 %
  Other     16     26   -38.5 %
    Total noninterest income     1,485     1,250   18.8 %
                   
Noninterest Expense:                  
  Salaries and benefits     1,821     1,652   10.2 %
  Net occupancy     325     302   7.6 %
  Equipment     259     217   19.4 %
  Regulatory assessments     105     100   5.0 %
  Marketing and public relations     147     146   0.7 %
  Professional fees     169     184   -8.2 %
  Other     550     614   -10.4 %
    Total noninterest expense     3,376     3,215   5.0 %
Income before income taxes     1,728     1,678   3.0 %
Income taxes     536     520   3.1 %
Net income     1,192     1,158   2.9 %
Less: Net income attributable to noncontrolling interest     -     -      
                   
Net income attibutable to Elmira Savings Bank     1,192     1,158   2.9 %
                   
Dividend on preferred stock     401     395   1.5 %
Income available to common shareholders   $ 791   $ 763   3.7 %
                   
                   
Basic earnings per share   $ 0.34   $ 0.34   0.0 %
                   
Diluted earnings per share   $ 0.32   $ 0.32   0.0 %
                   
Weighted average shares outstanding - basic     2,334,550     2,262,917   3.2 %
                   
Weighted average shares outstanding - diluted     2,471,344     2,353,433   5.0 %
                   
Dividends per share   $ 0.23   $ 0.21   9.5 %
                   
                   
Per share data has been restated to reflect the 5% stock dividend paid on December 28, 2012.  
   
   
   
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                             
(Dollars in Thousands)   For the Three Months Ended  
    March 31, 2013     March 31, 2012  
ASSETS:   Average Balance   Interest   Average Rate     Average Balance   Interest   Average Rate  
Loans   $ 376,910   $ 4,473   4.77 %   $ 347,897   $ 4,574   5.26 %
Short-term investments     2,595     -   0.04       898     -   0.03  
Securities     80,592     632   3.15       94,392     775   3.28  
Total interest-earning assets     460,097     5,105   4.46       443,187     5,349   4.83  
                                     
Noninterest-earning assets     70,022                 75,746            
                                     
TOTAL ASSETS   $ 530,119               $ 518,933            
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                                    
Interest-bearing deposits   $ 343,753   $ 829   0.98     $ 328,886   $ 947   1.17  
Borrowings     54,000     477   3.53       68,584     634   3.66  
Total interest-bearing liabilities     397,753     1,306   1.32       397,470     1,581   1.59  
                                     
Noninterest-bearing liabilities     65,747                 56,263            
Shareholders' equity     66,619                 65,200            
                                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 530,119               $ 518,933            
Interest rate spread               3.14 %               3.24 %
Net interest income/margin         $ 3,799   3.32 %         $ 3,768   3.40 %
                                     
           
           
          Quarter Ended
(Dollars in Thousands, Except Per Share Data)   3/31/2013     12/31/2012     9/30/2012     6/30/2012     3/31/2012
Operating Data                                    
                                     
  Net income   $ 1,192     $ 1,299     $ 1,398     $ 1,358     $ 1,158
  Net interest income     3,799       3,739       3,810       3,772     3,768
  Provision for loan losses     180       42       154       142     125
  Net security gains     61       -       -       75     -
  Non-interest income, ex. Net security gains     1,424       1,529       1,723       1,473     1,250
  Non-interest expense     3,376       3,301       3,271       3,157     3,215
                                     
Performance Statistics                                    
                                     
  Net interest margin     3.32 %     3.25 %     3.32 %     3.37 %   3.40%
  Annualized return on average assets     0.91 %     0.97 %     1.04 %     1.04 %   0.90%
  Annualized return on average equity     7.26 %     7.72 %     8.39 %     8.33 %   7.12%
  Annualized net loan charge-offs to avg loans     0.21 %     0.03 %     -0.02 %     0.02 %   -0.01%
  Net charge-offs (recoveries)     196       31       (19 )     20     (10)
  Efficiency ratio     63.9 %     62.7 %     59.1 %     59.3 %   64.1%
                                     
Per Share Data                                    
                                     
  Basic earnings per share   $ 0.34     $ 0.39     $ 0.44     $ 0.42     $ 0.33
  Diluted earnings per share     0.32       0.37       0.42       0.40     0.32
  Dividend declared per share     0.23       0.22       0.22       0.21     0.21
  Book value     18.13       18.50       18.52       18.22     18.06
  Common stock price:                                    
    High     25.35       23.65       19.04       20.46     20.82
    Low     22.74       18.48       17.50       16.83     15.45
    Close     25.35       22.74       18.86       18.36     18.81
  Weighted average common shares:                                    
    Basic     2,335       2,297       2,280       2,269     2,263
    Fully diluted     2,471       2,424       2,396       2,383     2,353
  End-of-period common shares:                                    
    Issued     2,510       2,455       2,438       2,425     2,407
    Treasury     116       126       126       126     126
                                     
    Share and per share data has been restated to reflect the 5% stock dividend paid on December 28, 2012.
                                     
Financial Condition Data:                                    
General                                    
  Total assets   $ 510,915     $ 536,936     $ 534,159     $ 530,646     $ 519,618
  Loans, net     370,753       374,368       369,851       358,756     346,144
  Intangibles     12,609       12,636       12,667       12,699     12,732
  Total deposits     395,091       409,565       406,216       397,972     383,314
                                     
    Noninterest-bearing     58,118       61,444       58,760       55,269     50,113
                                     
    Savings     60,177       59,034       56,115       56,332     54,936
    NOW     71,472       76,133       73,079       73,431     70,068
    Money Market     19,222       20,131       23,082       19,272     18,890
    Time deposits     186,102       192,823       195,180       193,668     189,307
    Total interest-bearing deposits     336,973       348,121       347,456       342,703     333,201
                                     
  Shareholders' equity     56,677       66,609       66,543       65,621     64,944
                                     
Asset Quality                                    
                                     
  Non-performing assets   $ 3,826     $ 3,986     $ 3,980     $ 3,829     $ 3,764
  Non-performing assets to total assets     0.75 %     0.74 %     0.75 %     0.72 %   0.72%
  Allowance for loan losses     3,724       3,740       3,729       3,556     3,434
  Allowance for loan losses to total loans     0.99 %     0.99 %     1.00 %     0.98 %   0.98%
  Allowance for loan losses to total loans non-performing loans     100.95 %     96.87 %     97.29 %     96.57 %   94.26%
  Non-performing loans to total loans     0.99 %     1.02 %     1.03 %     1.02 %   1.05%
                                     
Capitalization                                    
                                     
  Shareholders' equity to total assets     11.09 %     12.41 %     12.46 %     12.37 %   12.50%
                                       
Contact:
For further information contact:
Thomas M. Carr
EVP & COO
Elmira Savings Bank
333 East Water Street
Elmira, New York 14901
(607) 735-8660
Email Contact
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