Elmira Savings Bank Reports Third Quarter Earnings

Wednesday, October 23, 2013
 

Elmira, New York, October 23, 2013 --- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

Net income was $1,369,000 and $3,935,000 for the three and nine months ended September 30, 2013 compared to $1,398,000 and $3,914,000 for the same periods in 2012.

  • Diluted earnings per share were $.44 per share and $1.20 per share for the three and nine months ended September 30, 2013 compared to $.41 per share and $1.14 per share for the same periods in 2012.  These represent increases of 7.3% and 5.3% for the three and nine months ended September 30, 2013 compared to the same periods in 2012.
  • Return on average assets was 1.05% and 1.01% for the three and nine months ended September 30, 2013 compared to 1.04% and .99% for the same periods in 2012.
  • Return on average equity was 9.55% and 8.75% for the three and nine months ended September 30, 2013 compared to 8.39% and 7.95% for the same periods in 2012.


“We are pleased to report strong operating results for the first nine months of 2013.  Our redemption of $10.5 million of preferred stock at the end of first quarter of 2013, combined with increased earnings has resulted in an increase of earnings per share by 5% for the first nine months of 2013 compared to the same period in 2012,” said Thomas M. Carr, President and COO. 

Net Income

Net income totaled $3,935,000 for the nine months ended September 30, 2013, an increase of $21,000 or 1% from the $3,914,000 of net income recorded for the same period in 2012.  This increase of $21,000 was the net result of a reduction in tax expense of $773,000 and a reduction in the provision for loan losses of $106,000, offset by a decline in net interest income of $69,000, a decrease in noninterest income of $143,000, and an increase in noninterest expense of $646,000.

Net income totaled $1,369,000 for the three months ended September 30, 2013, a decrease of $29,000 or 2% from the $1,398,000 recorded for the same period in 2012.  This decrease was the net result of a reduction in tax expense of $313,000 and a reduction in the provision for loan losses of $104,000, offset by a decline in noninterest income and net interest income of $249,000 and $40,000, respectively, and an increase of $157,000 in noninterest expense.

Basic and diluted earnings per share for the nine months ended September 30, 2013 were $1.26 per share and $1.20 per share compared to $1.19 per share and $1.14 per share for the same period in 2012.  Basic and diluted earnings per share for the three months ended September 30, 2013 were $.46 per share and $.44 per share compared to $.44 per share and $.41 per share for the same period in 2012.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2013 was 3.26% compared to 3.37% for the same period in 2012.  The yield on average earning assets was 4.39% for the nine months ended September 30, 2013 compared to 4.70% for the same period in 2012.  The average cost of interest-bearing liabilities was 1.32% for the nine months ended September 30, 2013 compared to 1.50% for the same period in 2012.

The net interest margin for the three months ended September 30, 2013 was 3.23% compared to 3.32% for the same period in 2012.  The average yield on earning assets was 4.34% for the three months ended September 30, 2013 compared to 4.56% for the same period in 2012.  The average cost of interest-bearing liabilities was 1.31% for the three months ended September 30, 2013 compared to 1.41% for the same period in 2012.


Assets

Total assets decreased $17.2 million or 3% to $519.7 million at September 30, 2013 compared to $536.9 million at December 31, 2012.  Loans receivable increased 2% to $385.1 million at September 30, 2013 compared to December 31, 2012.  The available-for-sale investment portfolio decreased $7.6 million from December 31, 2012 to September 30, 2013.

“During the first nine months of 2013, our loan originations have remained strong.  We are excited about expanding our mortgage origination operation into Broome County, New York, with the opening of our loan production office on the Vestal Parkway,” said Thomas M. Carr, President and COO. 

Nonperforming Loans

Our nonperforming loans to total loans ratio has decreased to .86% at September 30, 2013 from 1.02% at December 31, 2012.  Net loan charge-offs to average loans for the nine months ended September 30, 2013 remained low at 0.08%, consistent with the nine month period ended September 30, 2012 when net recoveries totaled $9,000.  The allowance for loan losses was 0.99% of total loans at September 30, 2013 and December 31, 2012.

Liabilities

Deposits totaled $396.6 million at September 30, 2013, a decrease of $13.0 million or 3%.  The $13.0 million decrease primarily consists of a $14.1 million decrease in time deposits and a $4.1 million decrease in NOW accounts, partially offset by a $2.3 million increase in money market accounts.  Borrowed funds increased by $6.0 million or 11%.

Shareholders’ Equity

Shareholders’ equity decreased $9.6 million to $57.3 million at September 30, 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 $18.29 at September 30, 2013, compared to $18.50 at December 31, 2012.  Dividends paid to common shareholders were $0.23 and $0.69 for the three and nine months ended September 30, 2013 compared to $0.22 and $0.64 for the same periods in 2012, representing increases of 4.5% for the three month period and 7.8% for the nine month period. 

Elmira Savings Bank, with $519.7 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; a loan center in Cortland County, NY; 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 & COO
Elmira Savings Bank
333 East Water Street
Elmira, New York  14901
(607) 735-8660

 

 

Elmira Savings Bank • 333 E. Water St., Elmira, NY 14901 • Phone: (607) 734-3374 • (888) 372-9299 • 

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