Elmira Savings Bank Reports 2019 Earnings

/EIN News/ -- 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	%