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Elmira Savings Bank Reports 2019 Earnings

ELMIRA, N.Y., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Elmira Savings Bank (ESBK)

Highlights

  • Net income was $940,000 and $3,486,000 for the three and twelve months ended December 31, 2019 compared to $935,000 and $4,239,000 for the same periods in 2018.

  • Diluted earnings per share were $.27 per share and $1.00 per share for the three and twelve months ended December 31, 2019 compared to $.27 per share and $1.21 per share for the same periods in 2018.

  • Return on average assets was .61% and .57% for the three and twelve months ended December 31, 2019 compared to .65% and .75% for the same periods in 2018.

  • Return on average equity was 6.33% and 5.93% for the three and twelve months ended December 31, 2019 compared to 6.39% and 7.36% for the same periods in 2018.

“We are pleased with our loan and deposit growth in 2019 and continue to focus on improving profitability,” said Thomas M. Carr, President and CEO.

Net Income

Net income totaled $3,486,000 for the twelve months ended December 31, 2019, a decrease of $753,000 or 17.8% from the $4,239,000 of net income recorded for the same period in 2018. This decrease was the net result of an increase in noninterest expense of $788,000, an increase in the provision for loan losses of $377,000, and a decrease in net interest income of $142,000, offset by an increase in noninterest income of $255,000 and a decrease in income tax expense of $299,000.

Net income totaled $940,000 for the three months ended December 31, 2019, an increase of $5,000 or .5% from the $935,000 recorded for the same period in 2018. This increase was the net result of an increase in noninterest income of $234,000 and a decrease in income tax expense of $23,000, offset by an increase in noninterest expense of $136,000, a decrease in net interest income of $66,000, and an increase in the provision for loan losses of $50,000.

Basic and diluted earnings per share for the twelve months ended December 31, 2019 were both $1.00 per share. Basic and diluted earnings per share for the twelve months ended December 31, 2018 were $1.22 and $1.21 per share. Basic and diluted earnings per share for the three months ended December 31, 2019 and 2018 were both $.27 per share.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2019 was 3.04% compared to 3.31% for the same period in 2018. The yield on average earning assets was 4.31% for the twelve months ended December 31, 2019 compared to 4.20% for the same period in 2018. The average cost of interest-bearing liabilities was 1.48% for the twelve months ended December 31, 2019 compared to 1.06% for the same period in 2018.

The net interest margin for the three months ended December 31, 2019 was 3.01% compared to 3.26% for the same period in 2018. The average yield on earning assets was 4.30% for the three months ended December 31, 2019 compared to 4.25% for the same period in 2018. The average cost of interest-bearing liabilities was 1.54% for the three months ended December 31, 2019 and 1.17% for the same period in 2018.

Assets

Total assets increased $16.8 million or 2.8% to $606.8 million at December 31, 2019 compared to $590.0 million at December 31, 2018. Cash and cash equivalents decreased by $7.5 million or 38.3% to $12.0 million at December 31, 2019 compared to $19.5 million at December 31, 2018. Loans, including loans held for sale, increased 7.6% to $520.2 million at December 31, 2019 compared to December 31, 2018. The available-for-sale investment portfolio decreased $13.2 million from December 31, 2018 to December 31, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.82% at December 31, 2019 from 0.94% at December 31, 2018. Net loan charge-offs to average loans for the twelve months ended December 31, 2019 of 0.11% increased from 0.10% for the twelve months ended December 31, 2018. The allowance for loan losses was 0.88% of total loans at December 31, 2019 and 0.91% of total loans at December 31, 2018.

Liabilities

Deposits total $512.2 million at December 31, 2019, an increase of $20.7 million or 4.2%. The $20.7 million increase consists of a $22.5 million increase in time deposits, a $4.6 million increase in money market accounts, and a $244,000 increase in noninterest bearing accounts, partially offset by a $5.1 million decrease in savings accounts and a $1.5 million decrease in interest bearing transaction accounts. Borrowed funds decreased by $2.0 million or 6.5%.

Shareholders’ Equity

Shareholders’ equity increased $662,000 to $58.6 million at December 31, 2019 compared to December 31, 2018. The current level of shareholders’ equity equates to a book value per share of $16.67 at December 31, 2019, compared to $16.52 at December 31, 2018. Dividends paid for common shareholders were $0.23 and $0.92 for the three and twelve months ended December 31, 2019 and $0.23 and $0.91 for the same periods 2018, after adjusting for the 5% stock dividend paid on June 15, 2018.

Elmira Savings Bank, with $606.8 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a state-chartered bank with five 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.

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

ELMIRA SAVINGS BANK

CONSOLIDATED BALANCE SHEET

(unaudited)

(in thousands, except for share and per share data)

December 31,

December 31,

2019

2018

% Change

ASSETS

Cash and due from banks

$

11,954

$

19,429

-38.5

%

Federal funds sold and other short-term investments

92

94

-2.1

%

Total cash and cash equivalents

12,046

19,523

-38.3

%

Securities available for sale, at fair value

11,802

25,051

-52.9

%

Securities held to maturity - fair value $7,233

at December 31, 2019 and $7,638 at December 31, 2018

7,018

7,518

-6.7

%

Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost

9,944

9,462

5.1

%

Loans held for sale

1,354

1,392

-2.7

%

Loans receivable

518,871

482,272

7.6

%

Less: Allowance for loan losses

4,576

4,372

4.7

%

Net loans

514,295

477,900

7.6

%

Premises and equipment, net

16,210

16,846

-3.8

%

Bank-owned life insurance

14,919

14,444

3.3

%

Accrued interest receivable

1,625

1,566

3.8

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,296

4,018

31.8

%

Total assets

$

606,829

$

590,040

2.8

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

512,215

$

491,517

4.2

%

Borrowings

29,000

31,000

-6.5

%

Other liabilities

7,003

9,574

-26.9

%

Total liabilities

548,218

532,091

3.0

%

Shareholders' equity:

Preferred stock, $1 par value; $1,000 liquidation value per issued share; 5,000,000 shares

authorized; 10,000 shares issued at December 31, 2019 and at December 31, 2018

9,700

9,700

0.0

%

Common stock, $1 par value; authorized 5,000,000 shares; 3,606,089 shares

issued at December 31, 2019 and 3,597,605 shares issued at December 31, 2018

3,606

3,598

0.2

%

Additional paid-in capital

53,993

53,784

0.4

%

Retained earnings

3,432

3,176

8.1

%

Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares

at December 31, 2019 and December 31, 2018

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income (loss)

32

(158

)

-120.3

%

Total Elmira Savings Bank shareholders' equity

58,561

57,898

1.1

%

Noncontrolling interest

50

51

-2.0

%

Total shareholders' equity

58,611

57,949

1.1

%

Total liabilities and shareholders' equity

$

606,829

$

590,040

2.8

%


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)

2019

2018

% Change

2019

2018

% Change

Interest and dividend income:

Interest and fees on loans

$

5,642

$

5,091

10.8

%

$

21,857

$

19,569

11.7

%

Interest and dividends on securities

Taxable

218

295

-26.1

%

977

1,037

-5.8

%

Non-taxable

96

116

-17.2

%

427

472

-9.5

%

Total interest and dividend income

5,956

5,502

8.3

%

23,261

21,078

10.4

%

Interest expense:

Interest on deposits

1,585

1,056

50.1

%

5,992

3,565

68.1

%

Interest on borrowings

212

221

-4.1

%

841

943

-10.8

%

Total interest expense

1,797

1,277

40.7

%

6,833

4,508

51.6

%

Net interest income

4,159

4,225

-1.6

%

16,428

16,570

-0.9

%

Provision for loan losses

200

150

33.3

%

744

367

102.7

%

Net interest income after provision for loan losses

3,959

4,075

-2.8

%

15,684

16,203

-3.2

%

Noninterest income:

Service fees

345

371

-7.0

%

1,399

1,456

-3.9

%

Gain on sale of loans held for sale

664

410

62.0

%

1,830

1,588

15.2

%

Gain on sale of securities

-

-

-

90

-

-

Other service fees

201

198

1.5

%

865

813

6.4

%

Earnings on bank-owned life insurance

101

95

6.3

%

385

384

0.3

%

Other

47

50

-6.0

%

204

277

-26.4

%

Total noninterest income

1,358

1,124

20.8

%

4,773

4,518

5.6

%

Noninterest expense:

Salaries and benefits

2,154

2,168

-0.6

%

8,537

8,088

5.6

%

Net occupancy

363

400

-9.3

%

1,562

1,596

-2.1

%

Equipment

372

360

3.3

%

1,517

1,392

9.0

%

Marketing and public relations

272

90

202.2

%

1,060

736

44.0

%

Professional fees

213

141

51.1

%

574

541

6.1

%

Other

800

879

-9.0

%

3,027

3,136

-3.5

%

Total noninterest expense

4,174

4,038

3.4

%

16,277

15,489

5.1

%

Income before income taxes

1,143

1,161

-1.6

%

4,180

5,232

-20.1

%

Income taxes

198

221

-10.4

%

689

988

-30.3

%

Net income

945

940

0.5

%

3,491

4,244

-17.7

%

Less: Net income attributable to noncontrolling interest

5

5

-

5

5

-

Net income attributable to Elmira Savings Bank

940

935

0.5

%

3,486

4,239

-17.8

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

940

$

935

0.5

%

$

3,486

$

4,239

-17.8

%

Basic earnings per share

$

0.27

$

0.27

0.0

%

$

1.00

$

1.22

-18.0

%

Diluted earnings per share

$

0.27

$

0.27

0.0

%

$

1.00

$

1.21

-17.4

%

Weighted average shares outstanding - basic

3,498,955

3,486,535

0.4

%

3,495,089

3,479,916

0.4

%

Weighted average shares outstanding - diluted

3,501,487

3,499,475

0.1

%

3,500,123

3,494,218

0.2

%

Dividends per share

$

0.23

$

0.23

0.0

%

$

0.92

$

0.91

1.1

%

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

December 31, 2019

December 31, 2018

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

518,297

$

5,642

4.32

%

$

472,389

$

5,091

4.28

%

Short-term investments

730

3

1.64

520

3

2.20

Securities

30,290

311

4.09

41,536

408

3.91

Total interest-earning assets

549,317

5,956

4.30

514,445

5,502

4.25

Noninterest-earning assets

65,253

57,902

TOTAL ASSETS

$

614,570

$

572,347

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

434,491

$

1,585

1.45

$

400,138

$

1,056

1.05

Borrowings

29,000

212

2.85

31,095

221

2.79

Total interest-bearing liabilities

463,491

1,797

1.54

431,233

1,277

1.17

Noninterest-bearing liabilities

92,138

83,083

Shareholders' equity

58,941

58,031

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

614,570

$

572,347

Interest rate spread

2.76

%

3.08

%

Net interest income/margin

$

4,159

3.01

%

$

4,225

3.26

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Twelve Months Ended

December 31, 2019

December 31, 2018

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

500,066

$

21,857

4.36

%

$

458,691

$

19,569

4.25

%

Short-term investments

604

12

1.93

478

8

1.65

Securities

37,183

1,392

3.74

40,693

1,501

3.68

Total interest-earning assets

537,853

23,261

4.31

499,862

21,078

4.20

Noninterest-earning assets

68,787

62,926

TOTAL ASSETS

$

606,640

$

562,788

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

430,831

$

5,992

1.39

$

390,407

$

3,565

0.91

Borrowings

29,186

841

2.84

33,491

943

2.78

Total interest-bearing liabilities

460,017

6,833

1.48

423,898

4,508

1.06

Noninterest-bearing liabilities

87,883

81,287

Shareholders' equity

58,740

57,603

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

606,640

$

562,788

Interest rate spread

2.83

%

3.14

%

Net interest income/margin

$

16,428

3.04

%

$

16,570

3.31

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

12/31/2019

9/30/2019

6/30/2019

3/31/2019

12/31/2018

Operating Data

Net income

$

940

$

901

$

718

$

927

$

935

Net interest income

4,159

4,072

4,097

4,100

4,225

Provision for loan losses

200

250

162

132

150

Net security gains

-

90

-

-

-

Non-interest income, ex. Net security gains

1,358

1,214

1,126

985

1,124

Non-interest expense

4,174

4,043

4,206

3,854

4,038

Performance Statistics

Net interest margin

3.01

%

2.97

%

3.06

%

3.13

%

3.26

%

Annualized return on average assets

0.61

%

0.58

%

0.47

%

0.64

%

0.65

%

Annualized return on average equity

6.33

%

6.07

%

4.92

%

6.41

%

6.39

%

Annualized net loan charge-offs to avg loans

0.14

%

0.11

%

0.09

%

0.10

%

0.17

%

Net charge-offs

183

135

105

117

199

Efficiency ratio

75.7

%

75.2

%

80.5

%

75.8

%

75.5

%

Per Share Data

Basic earnings per share

$

0.27

$

0.26

$

0.21

$

0.27

$

0.27

Diluted earnings per share

0.27

0.26

0.21

0.26

0.27

Dividend declared per share

0.23

0.23

0.23

0.23

0.23

Book value

16.67

16.62

16.60

16.59

16.52

Common stock price:

High

15.99

16.40

17.40

19.09

20.47

Low

13.97

13.97

15.69

16.32

15.77

Close

15.10

14.07

16.05

16.75

17.45

Weighted average common shares:

Basic

3,499

3,496

3,493

3,492

3,487

Fully diluted

3,501

3,499

3,499

3,501

3,499

End-of-period common shares:

Issued

3,606

3,606

3,605

3,601

3,598

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

606,829

$

615,601

$

610,398

$

596,613

$

590,040

Loans, net

514,295

511,750

496,149

484,780

477,900

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

512,215

520,030

516,327

503,089

491,517

Noninterest-bearing

81,934

82,613

81,249

76,414

81,690

Savings

70,358

69,186

71,100

71,642

75,483

NOW

88,126

84,207

85,130

85,808

89,666

Money Market

24,724

21,555

19,925

19,405

20,087

Time deposits

247,073

262,469

258,923

249,820

224,591

Total interest-bearing deposits

430,281

437,417

435,078

426,675

409,827

Shareholders' equity

58,611

58,422

58,357

58,231

57,949

Asset Quality

Non-performing assets

$

4,723

$

4,923

$

4,996

$

5,081

$

4,649

Non-performing assets to total assets

0.78

%

0.80

%

0.82

%

0.85

%

0.79

%

Allowance for loan losses

4,576

4,559

4,444

4,387

4,372

Allowance for loan losses to total loans

0.88

%

0.88

%

0.89

%

0.90

%

0.91

%

Allowance for loan losses to

non-performing loans

108.51

%

96.43

%

93.55

%

89.71

%

97.16

%

Non-performing loans to total loans

0.82

%

0.92

%

0.96

%

1.01

%

0.94

%

Capitalization

Shareholders' equity to total assets

9.66

%

9.49

%

9.56

%

9.76

%

9.82

%