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Elmira Savings Bank Reports 2019 Earnings

2020-01-29 15:18 ET - News Release

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

 

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