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Elmira Savings Bank Reports First Quarter Earnings

 
Elmira, New York, April 22, 2014 --- Elmira Savings Bank (NASDAQ:ESBK)
 
Highlights
 
  • Net income was $1,060,000 for the three months ended March 31, 2014 compared to $1,192,000 for the same period in 2013.  Income available to common shareholders after dividends on preferred stock increased 5.6% to $835,000 for the three months ended March 31, 2014 compared to $791,000 for the same period in 2013.
  • Diluted earnings per share was $.30 per share for the three months ended March 31, 2014 compared to $.29 per share for the same period in 2013.  This represents an increase of 3.4% for the three months ended March 31, 2014 compared to the same period in 2013.
  • Return on average assets was .84% for the three months ended March 31, 2014 compared to .91% for the same period in 2013.
  • Return on average equity was 7.82% for the three months ended March 31, 2014 compared to 7.26% for the same period in 2013.

“We are pleased to report a 5.6% increase in income available to common shareholders for the first quarter of 2014, compared to the same period in 2013, despite slightly lower net income,” said Thomas M. Carr, President and Chief Operating Officer.  Carr continued, “Our decision to retire preferred shares in 2013 has greatly reduced our level of preferred dividend payments, benefiting our common shareholders who were also rewarded with a $.23, or 4% annualized, common dividend in the first quarter.”

Net Income
 
Net income totaled $1,060,000 for the three months ended March 31, 2014, a decrease of $132,000 or 11.1% from the $1,192,000 recorded for the same period in 2013.  This decrease was the net result of a decline in noninterest income of $196,000 and an increase in noninterest expense of $187,000, partially offset by an increase of $74,000 in net interest income, a reduction in the provision for loan losses of $126,000, and a reduction in tax expense of $51,000.
 
Basic and diluted earnings per share for the three months ended March 31, 2014 were $.31 per share and $.30 per share compared to $.31 per share and $.29 per share for the same period in 2013.
 
Net Interest Margin
 
The net interest margin for the three months ended March 31, 2014 was 3.31% compared to 3.32% for the first quarter of 2013.  The yield on average earning assets was 4.34% for the three months ended March 31, 2014 compared to 4.46% for the same period in 2013.  The average cost of interest-bearing liabilities was 1.22% for the three months ended March 31, 2014 compared to 1.32% for the three months ended March 31, 2013.
 
Assets
 
Total assets decreased $387,000 or 0.1% to $513.9 million at March 31, 2014 compared to $514.3 million at December 31, 2013.  Loans receivable increased 0.8% to $392.1 million at March 31, 2014 compared to December 31, 2013.  The available-for-sale investment portfolio decreased $5.8 million from December 31, 2013 to March 31, 2014.
 
Nonperforming Loans
 
Our nonperforming loans to total loans ratio has decreased to .82% at March 31, 2014 from .90% at December 31, 2013.  Net loan charge-offs to average loans for the three months ended March 31, 2014 of .04% decreased from .06% for the twelve months ended December 31, 2013.  The allowance for loan losses was .98% of total loans at March 31, 2014 and .99% at December 31, 2013.
 
Liabilities
 
Deposits totaled $395.0 million at March 31, 2014, reflecting a decrease of $2.8 million or .7%.  Borrowed funds increased by $3.3 million or 5.8%.
 
Shareholders’ Equity
 
Shareholders’ equity increased $738,000 to $54.8 million at March 31, 2014 compared to December 31, 2013. The current level of shareholders’ equity equates to a book value per share of $16.78 at March 31, 2014, compared to $16.64 at December 31, 2013.  Dividends paid to common shareholders were $0.23 for the three months ended March 31, 2014 compared to $0.21 for the same period in 2013, representing an increase of 9.5%. 
 
Elmira Savings Bank, with $513.9 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; 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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