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Elmira Savings Bank Reports First Quarter Earnings

ELMIRA, N.Y., April 23, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (ESBK)

Highlights

  • Net income was $927,000 for the three months ended March 31, 2019 compared to $1,131,000 for the same period in 2018.

  • Diluted earnings per share were $.26 per share for the three months ended March 31, 2019 compared to $.32 per share for the same period in 2018.

  • Return on average assets was .64% for the three months ended March 31, 2019 and .83% for the same period in 2018.

  • Return on average equity was 6.41% for the three months ended March 31, 2019 compared to 8.03% for the same period in 2018.

  • Loans receivable of $489.2 million were up 8.3% over the same period in 2018, and are up 1.4% compared to December 31, 2018.

  • Total deposits of $503.1 million reflect an increase of 10.3% over the same period last year, and are up 2.4% from December 31, 2018.

“Net income is lower year to year due to lower revenue and higher provision expense. We are pleased with the continued growth in deposits across all the market areas our branches are located” said Thomas M. Carr, President and CEO. Carr continued, “we were pleased to increase loans by 1.4% and deposits by 2.4% during the first quarter.”

Net Income

Net income totaled $927,000 for the three months ended March 31, 2019, a decrease of $204,000 or 18.0% from the $1,131,000 recorded for the same period in 2018. This decrease was the net result of a decrease in noninterest income of $125,000, a decrease in net interest income of $75,000, an increase in the provision for loan losses of $90,000, and an increase in noninterest expense of $26,000, offset by a decrease in tax expense of $112,000.

Basic and diluted earnings per share for the three months ended March 31, 2019 were $.27 and $.26 per share compared to $.33 and $.32 per share for the same period in 2018. 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 three months ended March 31, 2019 was 3.13% compared to 3.38% for the first quarter of 2018. The yield on average earning assets was 4.27% for the three months ended March 31, 2019 compared to 4.19% for the same period in 2018. The average cost of interest-bearing liabilities was 1.34% for the three months ended March 31, 2019 compared to .96% for the three months ended March 31, 2018.

Assets

Total assets increased $6.6 million or 1.1% to $596.6 million at March 31, 2019 compared to $590.0 million at December 31, 2018. Loans receivable increased 1.4% to $489.2 million at March 31, 2019 compared to December 31, 2018. The available-for-sale investment portfolio decreased $393,000 from December 31, 2018 to March 31, 2019, and cash and cash equivalents decreased by $1.1 million from December 31, 2018 to March 31, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.01% at March 31, 2019 and .94% at December 31, 2018. Net loan charge-offs to average loans for the three months ended March 31, 2019 was .10% and .05% for the three months ended March 31, 2018. The allowance for loan losses was .90% of total loans at March 31, 2019 and .91% at December 31, 2018.

Liabilities

Deposits totaled $503.1 million at March 31, 2019, an increase of $11.6 million or 2.4% from the December 31, 2018 total of $491.5 million. Borrowed funds decreased by $2.0 million from December 31, 2018 to $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $282,000 to $58.2 million at March 31, 2019 compared to December 31, 2018. The current level of shareholders’ equity equates to a book value per share of $16.59 at March 31, 2019, compared to $16.52 at December 31, 2018. Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2018 and $.22 for the three months ended March 31, 2018.

Elmira Savings Bank, with $596.6 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)

March 31,

December 31,

2019

2018

% Change

ASSETS

Cash and due from banks

$

18,347

$

19,429

-5.6

%

Federal funds sold and other short-term investments

93

94

-1.1

%

Total cash and cash equivalents

18,440

19,523

-5.5

%

Securities available for sale, at fair value

24,658

25,051

-1.6

%

Securities held to maturity - fair value $7,565

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

7,439

7,518

-1.1

%

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

9,380

9,462

-0.9

%

Loans held for sale

843

1,392

-39.4

%

Loans receivable

489,167

482,272

1.4

%

Less: Allowance for loan losses

4,387

4,372

0.3

%

Net loans

484,780

477,900

1.4

%

Premises and equipment, net

18,963

16,846

12.6

%

Bank-owned life insurance

14,536

14,444

0.6

%

Accrued interest receivable

1,622

1,566

3.6

%

Goodwill

12,320

12,320

0.0

%

Other assets

3,632

4,018

-9.6

%

Total assets

$

596,613

$

590,040

1.1

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

503,089

$

491,517

2.4

%

Borrowings

29,000

31,000

-6.5

%

Other liabilities

6,293

9,574

-34.3

%

Total liabilities

538,382

532,091

1.2

%

Shareholders' equity:

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

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

9,700

9,700

0.0

%

Common stock, $1 par value; 5,000,000 shares authorized; 3,601,136 shares

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

3,601

3,598

0.1

%

Additional paid-in capital

53,839

53,784

0.1

%

Retained earnings

3,296

3,176

3.8

%

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

at March 31, 2019 and December 31, 2018

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive loss

(53

)

(158

)

-66.5

%

Total Elmira Savings Bank shareholders' equity

58,181

57,898

0.5

%

Noncontrolling interest

50

51

-2.0

%

Total shareholders' equity

58,231

57,949

0.5

%

Total liabilities and shareholders' equity

$

596,613

$

590,040

1.1

%

ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

March 31,

(in thousands, except for per share data)

2019

2018

% Change

Interest and dividend income:

Interest and fees on loans

$

5,183

$

4,796

8.1

%

Interest and dividends on securities

Taxable

273

252

8.3

%

Non-taxable

115

120

-4.2

%

Total interest and dividend income

5,571

5,168

7.8

%

Interest expense:

Interest on deposits

1,261

750

68.1

%

Interest on borrowings

210

243

-13.6

%

Total interest expense

1,471

993

48.1

%

Net interest income

4,100

4,175

-1.8

%

Provision for loan losses

132

42

214.3

%

Net interest income after provision for loan losses

3,968

4,133

-4.0

%

Noninterest income:

Service fees

356

388

-8.2

%

Gain on sale of loans held for sale

289

378

-23.5

%

Other service fees

202

193

4.7

%

Earnings on bank-owned life insurance

92

90

2.2

%

Other

46

61

-24.6

%

Total noninterest income

985

1,110

-11.3

%

Noninterest expense:

Salaries and benefits

2,020

1,947

3.7

%

Net occupancy

445

429

3.7

%

Equipment

363

337

7.7

%

Marketing and public relations

246

221

11.3

%

Professional fees

138

177

-22.0

%

Other

642

717

-10.5

%

Total noninterest expense

3,854

3,828

0.7

%

Income before income taxes

1,099

1,415

-22.3

%

Income taxes

172

284

-39.4

%

Net income

927

1,131

-18.0

%

Less: Net income attributable to noncontrolling interest

-

-

-

Net income attributable to Elmira Savings Bank

927

1,131

-18.0

%

Dividend on preferred stock

-

-

-

Income available to common shareholders

$

927

$

1,131

-18.0

%

Basic earnings per share

$

0.27

$

0.33

-18.2

%

Diluted earnings per share

$

0.26

$

0.32

-18.8

%

Weighted average shares outstanding - basic

3,491,821

3,474,449

0.5

%

Weighted average shares outstanding - diluted

3,501,037

3,488,857

0.3

%

Dividends per share

$

0.23

$

0.22

4.5

%

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

March 31, 2019

March 31, 2018

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

481,954

$

5,183

4.32

%

$

453,362

$

4,796

4.25

%

Short-term investments

479

2

1.88

433

2

1.33

Securities

41,727

386

3.72

41,519

370

3.59

Total interest-earning assets

524,160

5,571

4.27

495,314

5,168

4.19

Noninterest-earning assets

61,310

57,887

TOTAL ASSETS

$

585,470

$

553,201

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

415,680

$

1,261

1.23

$

381,823

$

750

0.80

Borrowings

29,755

210

2.82

35,515

243

2.73

Total interest-bearing liabilities

445,435

1,471

1.34

417,338

993

0.96

Noninterest-bearing liabilities

81,406

78,744

Shareholders' equity

58,629

57,119

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

585,470

$

553,201

Interest rate spread

2.93

%

3.23

%

Net interest income/margin

$

4,100

3.13

%

$

4,175

3.38

%

Quarter Ended

(Dollars in Thousands, Except Per Share Data)

3/31/2019

12/31/2018

9/30/2018

6/30/2018

3/31/2018

Operating Data

Net income

$

927

$

935

$

1,010

$

1,163

$

1,131

Net interest income

4,100

4,225

4,090

4,080

4,175

Provision for loan losses

132

150

150

25

42

Non-interest income, ex. Net security gains

985

1,124

1,154

1,130

1,110

Non-interest expense

3,854

4,038

3,891

3,732

3,828

Performance Statistics

Net interest margin

3.13

%

3.26

%

3.26

%

3.32

%

3.38

%

Annualized return on average assets

0.64

%

0.65

%

0.71

%

0.83

%

0.83

%

Annualized return on average equity

6.41

%

6.39

%

6.94

%

8.11

%

8.03

%

Annualized net loan charge-offs to avg loans

0.10

%

0.17

%

0.08

%

0.09

%

0.05

%

Net charge-offs

117

199

91

96

51

Efficiency ratio

75.8

%

75.5

%

74.2

%

71.6

%

72.4

%

Per Share Data

Basic earnings per share

$

0.27

$

0.27

$

0.29

$

0.33

$

0.33

Diluted earnings per share

0.26

0.27

0.29

0.33

0.32

Dividend declared per share

0.23

0.23

0.23

0.23

0.22

Book value

16.59

16.52

16.42

16.36

16.27

Common stock price:

High

19.09

20.47

21.00

20.60

19.95

Low

16.32

15.77

20.10

19.29

19.19

Close

16.75

17.45

20.40

20.43

19.52

Weighted average common shares:

Basic

3,492

3,487

3,481

3,477

3,474

Fully diluted

3,501

3,499

3,497

3,491

3,489

End-of-period common shares:

Issued

3,601

3,598

3,593

3,593

3,591

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

$

596,613

$

590,040

$

570,785

$

562,924

$

553,259

Loans, net

484,780

477,900

462,713

448,690

447,131

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

503,089

491,517

474,449

468,293

456,322

Noninterest-bearing

76,414

81,690

78,324

76,880

73,540

Savings

71,642

75,483

71,748

73,200

70,574

NOW

85,808

89,666

89,835

87,402

86,205

Money Market

19,405

20,087

18,910

21,934

22,928

Time deposits

249,820

224,591

215,632

208,877

203,075

Total interest-bearing deposits

426,675

409,827

396,125

391,413

382,782

Shareholders' equity

58,231

57,949

57,512

57,299

56,887

Asset Quality

Non-performing assets

$

5,081

$

4,649

$

4,520

$

4,560

$

3,181

Non-performing assets to total assets

0.85

%

0.79

%

0.79

%

0.81

%

0.57

%

Allowance for loan losses

4,387

4,372

4,421

4,362

4,433

Allowance for loan losses to total loans

0.90

%

0.91

%

0.95

%

0.96

%

0.98

%

Allowance for loan losses to

non-performing loans

89.71

%

97.16

%

100.00

%

99.18

%

142.59

%

Non-performing loans to total loans

1.01

%

0.94

%

0.96

%

0.98

%

0.70

%

Capitalization

Shareholders' equity to total assets

9.76

%

9.82

%

10.08

%

10.18

%

10.28

%

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