AllPoint AllPoint

 

Elmira Savings Bank Reports Second Quarter Earnings

Thursday, July 17, 2014
 
Elmira, New York, July 17, 2014 --- Elmira Savings Bank (NASDAQ:ESBK)
 
Highlights
 
  • Net income was $1,099,000 and $2,159,000 for the three and six months ended June 30, 2014 compared to $1,374,000 and $2,566,000 for the same periods in 2013.
  • Diluted earnings per share were $.31 per share and $.61 per share for the three and six months ended June 30, 2014 compared to $.40 per share and $.69 per share for the same periods in 2013. 
  • Return on average assets was .86% and .85% for the three and six months ended June 30, 2014 compared to 1.07% and .99% for the same periods in 2013.
  • Return on average equity was 7.95% and 7.89% for the three and six months ended June 30, 2014 compared to 9.67% and 8.38% for the same periods in 2013.
 
“During the first six months of 2014, the Bank experienced a decline in its mortgage originations, despite maintaining its market share, due to lower levels of refinancing, as well as purchasing activity across our market area.  This decline in originations has unfavorably affected our level of noninterest income,” said Thomas M. Carr, President and CEO.
 
Mr. Carr continued, “We have maintained our net interest margin, limited our operating expenses, increased deposit fee income, and continue to have strong asset quality.” 
 
Net Income
 
Net income totaled $2,159,000 for the six months ended June 30, 2014, a decrease of $407,000 or 16% from the $2,566,000 of net income recorded for the same period in 2013.  This decrease was the net result of a decrease in noninterest income of $341,000, an increase in tax expense of $237,000, and an increase in noninterest expense of $46,000, offset by an increase in net interest income of $81,000 and a decrease in the provision for loan losses of $136,000.
 
Net income totaled $1,099,000 for the three months ended June 30, 2014, a decrease of $275,000 or 20% from the $1,374,000 recorded for the same period in 2013.  This decrease was the net result of a decrease in noninterest income of $145,000 and an increase in tax expense of $288,000, offset by a decrease in noninterest expense of $141,000, an increase in net interest income of $7,000 and a decrease in the provision for loan losses of $10,000.
 
Net income of $1.1 million for the current quarter ended June 30, 2014 represents an increase of $39,000, or 4%, from net income for the preceding quarter ended March 31, 2014.
 
Basic and diluted earnings per share for the six months ended June 30, 2014 were $.64 per share and $.61 per share compared to $.73 per share and $.69 per share for the same period in 2013.  Basic and diluted earnings per share for the three months ended June 30, 2014 were $.33 per share and $.31 per share compared to $.42 per share and $.40 per share for the same period in 2013.
 
Net Interest Margin
 
The net interest margin for the six months ended June 30, 2014 was 3.25% compared to 3.28% for the same period in 2013.  The yield on average earning assets was 4.28% for the six months ended June 30, 2014 compared to 4.41% for the same period in 2013.  The average cost of interest-bearing liabilities was 1.22% for the six months ended June 30, 2014 compared to 1.32% for the same period in 2013.
 
The net interest margin for the three months ended June 30, 2014 was 3.19% compared to 3.24% for the same period in 2013.  The average yield on earning assets was 4.22% for the three months ended June 30, 2014 compared to 4.36% for the same period in 2013.  The average cost of interest-bearing liabilities was 1.22% for the three months ended June 30, 2014 compared to 1.32% for the same period in 2013.

Assets
 
Total assets increased $2.7 million or 0.5% to $517.1 million at June 30, 2014 compared to $514.3 million at December 31, 2013.  Loans receivable increased 1.6% to $395.4 million at June 30, 2014 compared to December 31, 2013.  The available-for-sale investment portfolio decreased $8.7 million from December 31, 2013 to June 30, 2014.
 
Nonperforming Loans
 
Our nonperforming loans to total loans ratio has increased to 1.06% at June 30, 2014 from .90% at December 31, 2013.  Net loan charge-offs to average loans for the six months ended June 30, 2014 of 0.09% decreased from 0.10% for the six months ended June 30, 2013.  The allowance for loan losses was 0.96% of total loans at June 30, 2014 and 0.99% of total loans at December 31, 2013.
 
Liabilities
 
Deposits total $399.2 million at June 30, 2014, an increase of $1.5 million or 0.4%.  The $1.5 million increase consists of a $2.5 million increase in savings accounts, a $1.6 million increase in money market accounts, a $1.3 million increase in noninterest-bearing accounts, and a $0.7 million increase in time deposits, partially offset by a $4.6 million decrease in NOW accounts.  Borrowed funds decreased by $1.5 million or 3%.
 
Shareholders’ Equity
 
Shareholders’ equity increased $1.2 million to $55.2 million at June 30, 2014 compared to December 31, 2013.  The current level of shareholders’ equity equates to a book value per share of $16.87 at June 30, 2014, compared to $16.64 at December 31, 2013.  Dividends paid to common shareholders were $0.23 and $0.46 for the three and six months ended June 30, 2014 compared to $0.21 and $0.42 for the same periods in 2013, representing increases of 9.5% for both the three and six month periods.
 
Elmira Savings Bank, with $517.1 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 & CEO
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 •       

© Copyright 2013 Elmira Savings Bank. All Rights Reserved. Member FDIC.