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Elmira Savings Bank Reports First Quarter Earnings

Elmira, New York, April 22, 2013 --- Elmira Savings Bank (NASDAQ:ESBK)
 

Highlights
 
• Net income increased to $1,192,000 for the three months ended March 31, 2013 compared to $1,158,000 for the same period in 2012.
 
• Diluted earnings per share were $.32 per share for the three months ended March 31, 2013, the same as the same period in 2012.
 
• Return on average assets was .91% for the three months ended March 31, 2013 compared to .90% for the same period in 2012.
 
• Return on average equity was 7.26% for the three months ended March 31, 2013 compared to 7.12% for the same period in 2012.
 
• Noninterest income increased to $1,485,000 for the three months ended March 31, 2013 compared to $1,250,000 for the same period in 2012.  This represents an increase of 19% for the three months ended March 31, 2013.
 
“We are pleased to have a strong start to 2013,” said Michael P. Hosey, President and Chief Executive Officer.  Hosey continued, “During the first quarter, our loan volume has remained strong and we expanded our geographic footprint with our expansion into Erwin, NY, in January.” 
 
Net Income
 
Net income totaled $1,192,000 for the three months ended March 31, 2013, an increase of $34,000 or 3% from the $1,158,000 recorded for the same period in 2012.  This modest increase was the result of an increase in noninterest income of $235,000 partially offset by an increase of $161,000 in noninterest expense.
 
Basic and diluted earnings per share for the three months ended March 31, 2013 were $.32 per share, the same as the first quarter of 2012.
 
Net Interest Margin
 
The net interest margin for the three months ended March 31, 2013 was 3.32% compared to 3.40% for the first quarter of 2012.  The yield on average earning assets was 4.46% for the three months ended March 31, 2013 compared to 4.83% for the same period in 2012.  The average cost of interest-bearing liabilities was 1.32% for the three months ended March 31, 2013 compared to 1.59% for the three months ended March 31, 2012.
 
Assets
Total assets decreased $26.0 million or 5% to $510.9 million at March 31, 2013 compared to $536.9 million at December 31, 2012.  Loans receivable decreased 1% to $374.5 million at March 31, 2013 compared to December 31, 2012.  The available-for-sale investment portfolio decreased $4.0 million from December 31, 2012 to March 31, 2013.
 
“At the end of the first quarter, the Bank redeemed $10.5 million of preferred stock.  Despite the reduction in capital, the Bank continues to maintain strong capital ratios.  The redemption will reduce our preferred dividends and help to increase our earnings per common shareholder in future periods,” said Michael P. Hosey, President and CEO.  Hosey continued, “The first quarter also evidenced depositors using excess funds to extinguish debt or reenter the equity markets.”
 
Nonperforming Loans
 
Our nonperforming loans to total loans ratio has decreased to .99% at March 31, 2013 from 1.02% at December 31, 2012.  Net loan charge-offs to average loans for the three months ended March 31, 2013 of .21% increased from .01% for the twelve months ended December 31, 2012.  The allowance for loan losses was .99% of total loans at March 31, 2013 and at December 31, 2012.
 
Liabilities
 
Deposits total $395.1 million at March 31, 2013, a decrease of $14.5 million or 3.5%.
 
Shareholders’ Equity
 
Shareholders’ equity decreased $10.2 million to $56.7 million at March 31, 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 $18.13 at March 31, 2013, compared to $18.50 at December 31, 2012.  Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2013 compared to $0.21 for the same period in 2012. 
 
Elmira Savings Bank, with $510.9 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; and a loan center in Cortland 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, EVP & 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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