Elmira Savings Bank Reports First Quarter Earnings
April 28 2020 - 2:23PM
Elmira Savings Bank (NASDAQ:ESBK) -
Highlights
- Net income was $1,018,000 for the
three months ended March 31, 2020 compared to $927,000 for the same
period in 2019.
- Diluted earnings per share were
$.29 per share for the three months ended March 31, 2020 compared
to $.26 per share for the same period in 2019.
- Return on average assets was .68%
for the three months ended March 31, 2020 and .64% for the same
period in 2019.
- Return on average equity was 6.93%
for the three months ended March 31, 2020 compared to 6.41% for the
same period in 2019.
“We are pleased with the improvement in net
income during the first quarter. We are concerned about the
current COVID-19 pandemic and the impact it is having on our
economy, but feel fortunate that our market areas have not yet
experienced the widespread health crisis, like other areas of the
state,” said Thomas M. Carr, President and CEO. Carr
continued, “As an express Small Business Administration lender, we
have been able to secure Paycheck Protection Program loans for over
200 local small businesses, totaling $23 million of economic aid
for our markets.”
Net Income
Net income totaled $1,018,000 for the three
months ended March 31, 2020, an increase of $91,000 or 9.8% from
the $927,000 recorded for the same period in 2019. This
increase was the net result of an increase in net interest income
of $181,000, an increase in noninterest income of $156,000, and a
decrease in the provision for loan losses of $82,000, offset by an
increase in noninterest expense of $229,000 and an increase in tax
expense of $99,000.
Basic and diluted earnings per share for the
three months ended March 31, 2020 were both $.29 per share compared
to $.27 and $.26 per share for the same period in 2019.
Net Interest Margin
The net interest margin for the three months
ended March 31, 2020 was 3.16% compared to 3.13% for the first
quarter of 2019. The yield on average earning assets was
4.38% for the three months ended March 31, 2020 compared to 4.27%
for the same period in 2019. The average cost of
interest-bearing liabilities was 1.45% for the three months ended
March 31, 2020 compared to 1.34% for the three months ended March
31, 2019.
Assets
Total assets decreased $8.8 million or 1.5% to
$598.0 million at March 31, 2020 compared to $606.8 million at
December 31, 2019. Loans receivable decreased 1.6% to $510.6
million at March 31, 2020 compared to December 31, 2019. The
available-for-sale investment portfolio decreased $3.0 million from
December 31, 2019 to March 31, 2020, and cash and cash equivalents
increased by $705,000 from December 31, 2019 to March 31, 2020.
Nonperforming Loans
Our nonperforming loans to total loans ratio was
.86% at March 31, 2020 and .82% at December 31, 2019. Net
loan charge-offs to average loans for the three months ended March
31, 2020 was .05% and .10% for the three months ended March 31,
2019. The allowance for loan losses was .89% of total loans
at March 31, 2020 and .88% at December 31, 2019.
Liabilities
Deposits totaled $501.8 million at March 31,
2020, a decrease of $10.5 million or 2.0% from the December 31,
2019 total of $512.2 million. Borrowed funds increased by
$2.0 million from December 31, 2019 to $31.0 million at March 31,
2020.
Shareholders’ Equity
Shareholders’ equity increased $433,000 to $59.0
million at March 31, 2020 compared to December 31, 2019. The
current level of shareholders’ equity equates to a book value per
share of $16.77 at March 31, 2020, compared to $16.67 at December
31, 2019. Dividends paid to common shareholders were $0.23
for the three months ended both March 31, 2020 and March 31,
2019.
Elmira Savings Bank, with $598.0 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.
ELMIRA
SAVINGS BANK |
CONSOLIDATED
BALANCE SHEET |
(unaudited) |
|
|
|
|
|
|
(in
thousands, except for share and per share data) |
March
31, |
|
December
31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
% Change |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
12,661 |
|
|
$ |
11,954 |
|
|
5.9 |
% |
Federal
funds sold and other short-term investments |
|
90 |
|
|
|
92 |
|
|
-2.2 |
% |
Total cash and cash equivalents |
|
12,751 |
|
|
|
12,046 |
|
|
5.9 |
% |
|
|
|
|
|
|
Securities
available for sale, at fair value |
|
8,779 |
|
|
|
11,802 |
|
|
-25.6 |
% |
Securities
held to maturity - fair value $7,643 at March 31, 2020 and $7,233
at December 31, 2019 |
|
6,935 |
|
|
|
7,018 |
|
|
-1.2 |
% |
Federal
Reserve and Federal Home Loan Bank (FHLB) stock, at cost |
|
10,029 |
|
|
|
9,944 |
|
|
0.9 |
% |
|
|
|
|
|
|
Loans held
for sale |
|
3,466 |
|
|
|
1,354 |
|
|
156.0 |
% |
|
|
|
|
|
|
Loans
receivable |
|
510,642 |
|
|
|
518,871 |
|
|
-1.6 |
% |
Less:
Allowance for loan losses |
|
4,566 |
|
|
|
4,576 |
|
|
-0.2 |
% |
Net loans |
|
506,076 |
|
|
|
514,295 |
|
|
-1.6 |
% |
|
|
|
|
|
|
Premises and
equipment, net |
|
16,052 |
|
|
|
16,210 |
|
|
-1.0 |
% |
Bank-owned
life insurance |
|
15,017 |
|
|
|
14,919 |
|
|
0.7 |
% |
Accrued
interest receivable |
|
1,667 |
|
|
|
1,625 |
|
|
2.6 |
% |
Goodwill |
|
12,320 |
|
|
|
12,320 |
|
|
0.0 |
% |
Other
assets |
|
4,925 |
|
|
|
5,296 |
|
|
-7.0 |
% |
Total assets |
$ |
598,017 |
|
|
$ |
606,829 |
|
|
-1.5 |
% |
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
501,760 |
|
|
$ |
512,215 |
|
|
-2.0 |
% |
Borrowings |
|
31,000 |
|
|
|
29,000 |
|
|
6.9 |
% |
Other
liabilities |
|
6,213 |
|
|
|
7,003 |
|
|
-11.3 |
% |
Total liabilities |
|
538,973 |
|
|
|
548,218 |
|
|
-1.7 |
% |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Preferred
stock, $1 par value; $1,000 liquidation value per issued share;
5,000,000 shares authorized; 10,000 shares issued at March 31, 2020
and at December 31, 2019 |
|
9,700 |
|
|
|
9,700 |
|
|
0.0 |
% |
Common
stock, $1 par value; authorized 5,000,000 shares; 3,611,392 shares
issued at March 31, 2020 and 3,606,089 shares issued at December
31, 2019 |
|
3,611 |
|
|
|
3,606 |
|
|
0.1 |
% |
Additional
paid-in capital |
|
54,088 |
|
|
|
53,993 |
|
|
0.2 |
% |
Retained
earnings |
|
3,641 |
|
|
|
3,432 |
|
|
6.1 |
% |
Treasury
stock, at cost - 93,883 common shares and 10,000 preferred shares
at March 31, 2020 and December 31, 2019 |
|
(12,202 |
) |
|
|
(12,202 |
) |
|
0.0 |
% |
Accumulated
other comprehensive income |
|
156 |
|
|
|
32 |
|
|
387.5 |
% |
Total Elmira Savings Bank shareholders' equity |
|
58,994 |
|
|
|
58,561 |
|
|
0.7 |
% |
Noncontrolling interest |
|
50 |
|
|
|
50 |
|
|
0.0 |
% |
Total shareholders' equity |
|
59,044 |
|
|
|
58,611 |
|
|
0.7 |
% |
Total liabilities and shareholders' equity |
$ |
598,017 |
|
|
$ |
606,829 |
|
|
-1.5 |
% |
|
|
|
|
|
|
ELMIRA
SAVINGS BANK |
CONSOLIDATED
STATEMENT OF INCOME |
(unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
March 31, |
|
|
(in
thousands, except for per share data) |
2020 |
|
2019 |
|
% Change |
|
|
|
|
|
|
Interest and
dividend income: |
|
|
|
|
|
Interest and fees on loans |
$ |
5,622 |
|
$ |
5,183 |
|
8.5 |
% |
Interest and dividends on securities |
|
|
|
|
|
Taxable |
|
213 |
|
|
273 |
|
-22.0 |
% |
Non-taxable |
|
82 |
|
|
115 |
|
-28.7 |
% |
Total interest and dividend income |
|
5,917 |
|
|
5,571 |
|
6.2 |
% |
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
Interest on deposits |
|
1,417 |
|
|
1,261 |
|
12.4 |
% |
Interest on borrowings |
|
219 |
|
|
210 |
|
4.3 |
% |
Total interest expense |
|
1,636 |
|
|
1,471 |
|
11.2 |
% |
Net interest
income |
|
4,281 |
|
|
4,100 |
|
4.4 |
% |
Provision
for loan losses |
|
50 |
|
|
132 |
|
-62.1 |
% |
Net interest
income after provision for loan losses |
|
4,231 |
|
|
3,968 |
|
6.6 |
% |
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
Service fees |
|
331 |
|
|
356 |
|
-7.0 |
% |
Gain on sale of loans held for sale |
|
437 |
|
|
289 |
|
51.2 |
% |
Other service fees |
|
233 |
|
|
202 |
|
15.3 |
% |
Earnings on bank-owned life insurance |
|
98 |
|
|
92 |
|
6.5 |
% |
Other |
|
42 |
|
|
46 |
|
-8.7 |
% |
Total noninterest income |
|
1,141 |
|
|
985 |
|
15.8 |
% |
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
Salaries and benefits |
|
2,144 |
|
|
2,020 |
|
6.1 |
% |
Net occupancy |
|
394 |
|
|
445 |
|
-11.5 |
% |
Equipment |
|
400 |
|
|
363 |
|
10.2 |
% |
Marketing and public relations |
|
177 |
|
|
246 |
|
-28.0 |
% |
Professional fees |
|
166 |
|
|
138 |
|
20.3 |
% |
Other |
|
802 |
|
|
642 |
|
24.9 |
% |
Total noninterest expense |
|
4,083 |
|
|
3,854 |
|
5.9 |
% |
Income
before income taxes |
|
1,289 |
|
|
1,099 |
|
17.3 |
% |
Income
taxes |
|
271 |
|
|
172 |
|
57.6 |
% |
Net
income |
|
1,018 |
|
|
927 |
|
9.8 |
% |
Less: Net
income attributable to noncontrolling interest |
|
- |
|
|
- |
|
- |
|
|
|
|
|
|
|
Net income
attributable to Elmira Savings Bank |
|
1,018 |
|
|
927 |
|
9.8 |
% |
|
|
|
|
|
|
Dividend on
preferred stock |
|
- |
|
|
- |
|
- |
|
Income
available to common shareholders |
$ |
1,018 |
|
$ |
927 |
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.29 |
|
$ |
0.27 |
|
7.4 |
% |
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.29 |
|
$ |
0.26 |
|
11.5 |
% |
|
|
|
|
|
|
Weighted
average shares outstanding - basic |
|
3,503,344 |
|
|
3,491,821 |
|
0.3 |
% |
|
|
|
|
|
|
Weighted
average shares outstanding - diluted |
|
3,506,591 |
|
|
3,501,037 |
|
0.2 |
% |
|
|
|
|
|
|
Dividends
per share |
$ |
0.23 |
|
$ |
0.23 |
|
0.0 |
% |
|
|
|
|
|
|
ELMIRA
SAVINGS BANK |
|
AVERAGE
BALANCES AND INTEREST RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands) |
For the Three Months Ended |
|
|
March 31, 2020 |
|
|
March 31, 2019 |
|
ASSETS: |
Average Balance |
Interest |
|
Average Rate |
|
Average Balance |
Interest |
|
Average Rate |
|
Loans |
$ |
511,479 |
|
$ |
5,622 |
|
4.39 |
% |
|
$ |
481,954 |
|
$ |
5,183 |
|
4.32 |
% |
Short-term
investments |
|
747 |
|
|
1 |
|
0.70 |
|
|
|
479 |
|
|
2 |
|
1.88 |
|
Securities |
|
27,819 |
|
|
294 |
|
4.23 |
|
|
|
41,727 |
|
|
386 |
|
3.72 |
|
Total
interest-earning assets |
|
540,045 |
|
|
5,917 |
|
4.38 |
|
|
|
524,160 |
|
|
5,571 |
|
4.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
59,734 |
|
|
|
|
|
|
|
61,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
599,779 |
|
|
|
|
|
|
$ |
585,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
420,993 |
|
$ |
1,417 |
|
1.35 |
|
|
$ |
415,680 |
|
$ |
1,261 |
|
1.23 |
|
Borrowings |
|
31,755 |
|
|
219 |
|
2.73 |
|
|
|
29,755 |
|
|
210 |
|
2.82 |
|
Total
interest-bearing liabilities |
|
452,748 |
|
|
1,636 |
|
1.45 |
|
|
|
445,435 |
|
|
1,471 |
|
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities |
|
87,899 |
|
|
|
|
|
|
|
81,406 |
|
|
|
|
|
Shareholders' equity |
|
59,132 |
|
|
|
|
|
|
|
58,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
599,779 |
|
|
|
|
|
|
$ |
585,470 |
|
|
|
|
|
Interest
rate spread |
|
|
|
|
2.93 |
% |
|
|
|
|
|
2.93 |
% |
Net interest
income/margin |
|
|
$ |
4,281 |
|
3.16 |
% |
|
|
|
$ |
4,100 |
|
3.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended |
(Dollars in Thousands, Except Per Share Data) |
|
3/31/2020 |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
Operating Data |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,018 |
|
$ |
940 |
|
$ |
901 |
|
$ |
718 |
|
$ |
927 |
|
Net interest income |
|
4,281 |
|
|
4,159 |
|
|
4,072 |
|
|
4,097 |
|
|
4,100 |
|
Provision for loan losses |
|
50 |
|
|
200 |
|
|
250 |
|
|
162 |
|
|
132 |
|
Net security gains |
|
- |
|
|
- |
|
|
90 |
|
|
- |
|
|
- |
|
Non-interest income, ex. Net security gains |
|
1,141 |
|
|
1,358 |
|
|
1,214 |
|
|
1,126 |
|
|
985 |
|
Non-interest expense |
|
4,083 |
|
|
4,174 |
|
|
4,043 |
|
|
4,206 |
|
|
3,854 |
|
Performance Statistics |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.16 |
% |
|
3.01 |
% |
|
2.97 |
% |
|
3.06 |
% |
|
3.13 |
% |
Annualized return on average assets |
|
0.68 |
% |
|
0.61 |
% |
|
0.58 |
% |
|
0.47 |
% |
|
0.64 |
% |
Annualized return on average equity |
|
6.93 |
% |
|
6.33 |
% |
|
6.07 |
% |
|
4.92 |
% |
|
6.41 |
% |
Annualized net loan charge-offs to avg loans |
|
0.05 |
% |
|
0.14 |
% |
|
0.11 |
% |
|
0.09 |
% |
|
0.10 |
% |
Net charge-offs |
|
60 |
|
|
183 |
|
|
135 |
|
|
105 |
|
|
117 |
|
Efficiency ratio |
|
75.3 |
% |
|
75.7 |
% |
|
75.2 |
% |
|
80.5 |
% |
|
75.8 |
% |
Per
Share Data |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.29 |
|
$ |
0.27 |
|
$ |
0.26 |
|
$ |
0.21 |
|
$ |
0.27 |
|
Diluted earnings per share |
|
0.29 |
|
|
0.27 |
|
|
0.26 |
|
|
0.21 |
|
|
0.26 |
|
Dividend declared per share |
|
0.23 |
|
|
0.23 |
|
|
0.23 |
|
|
0.23 |
|
|
0.23 |
|
Book value |
|
16.77 |
|
|
16.67 |
|
|
16.62 |
|
|
16.60 |
|
|
16.59 |
|
Common stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
17.40 |
|
|
15.99 |
|
|
16.40 |
|
|
17.40 |
|
|
19.09 |
|
Low |
|
11.50 |
|
|
13.97 |
|
|
13.97 |
|
|
15.69 |
|
|
16.32 |
|
Close |
|
11.50 |
|
|
15.10 |
|
|
14.07 |
|
|
16.05 |
|
|
16.75 |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
3,503 |
|
|
3,499 |
|
|
3,496 |
|
|
3,493 |
|
|
3,492 |
|
Fully diluted |
|
3,507 |
|
|
3,501 |
|
|
3,499 |
|
|
3,499 |
|
|
3,501 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
3,611 |
|
|
3,606 |
|
|
3,606 |
|
|
3,605 |
|
|
3,601 |
|
Treasury |
|
94 |
|
|
94 |
|
|
94 |
|
|
94 |
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Condition Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
598,017 |
|
$ |
606,829 |
|
$ |
615,601 |
|
$ |
610,398 |
|
$ |
596,613 |
|
Loans, net |
|
506,076 |
|
|
514,295 |
|
|
511,750 |
|
|
496,149 |
|
|
484,780 |
|
Intangibles |
|
12,320 |
|
|
12,320 |
|
|
12,320 |
|
|
12,320 |
|
|
12,320 |
|
Total deposits |
|
501,760 |
|
|
512,215 |
|
|
520,030 |
|
|
516,327 |
|
|
503,089 |
|
Noninterest-bearing |
|
83,431 |
|
|
81,934 |
|
|
82,613 |
|
|
81,249 |
|
|
76,414 |
|
Savings |
|
72,174 |
|
|
70,358 |
|
|
69,186 |
|
|
71,100 |
|
|
71,642 |
|
NOW |
|
83,323 |
|
|
88,126 |
|
|
84,207 |
|
|
85,130 |
|
|
85,808 |
|
Money Market |
|
20,306 |
|
|
24,724 |
|
|
21,555 |
|
|
19,925 |
|
|
19,405 |
|
Time deposits |
|
242,526 |
|
|
247,073 |
|
|
262,469 |
|
|
258,923 |
|
|
249,820 |
|
Total interest-bearing deposits |
|
418,329 |
|
|
430,281 |
|
|
437,417 |
|
|
435,078 |
|
|
426,675 |
|
Shareholders' equity |
|
59,044 |
|
|
58,611 |
|
|
58,422 |
|
|
58,357 |
|
|
58,231 |
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing assets |
$ |
4,686 |
|
$ |
4,723 |
|
$ |
4,923 |
|
$ |
4,996 |
|
$ |
5,081 |
|
Non-performing assets to total assets |
|
0.78 |
% |
|
0.78 |
% |
|
0.80 |
% |
|
0.82 |
% |
|
0.85 |
% |
Allowance for loan losses |
|
4,566 |
|
|
4,576 |
|
|
4,559 |
|
|
4,444 |
|
|
4,387 |
|
Allowance for loan losses to total loans |
|
0.89 |
% |
|
0.88 |
% |
|
0.88 |
% |
|
0.89 |
% |
|
0.90 |
% |
Allowance for loan losses to non-performing loans |
|
105.43 |
% |
|
108.51 |
% |
|
96.43 |
% |
|
93.55 |
% |
|
89.71 |
% |
Non-performing loans to total loans |
|
0.86 |
% |
|
0.82 |
% |
|
0.92 |
% |
|
0.96 |
% |
|
1.01 |
% |
Capitalization |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total assets |
|
9.87 |
% |
|
9.66 |
% |
|
9.49 |
% |
|
9.56 |
% |
|
9.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
For further information contact:Thomas M. Carr,
President & CEOElmira Savings Bank333 East Water StreetElmira,
New York 14901(607) 735-8660tcarr@elmirasavingsbank.com
Elmira Savings Bank (NASDAQ:ESBK)
Historical Stock Chart
From May 2024 to Jun 2024
Elmira Savings Bank (NASDAQ:ESBK)
Historical Stock Chart
From Jun 2023 to Jun 2024