Elmira Savings Bank Posts 10% Earnings Increase

Oct 20, 2010, 10:32 ET from Elmira Savings Bank, FSB

ELMIRA, N.Y., Oct. 20 /PRNewswire-FirstCall/ -- Elmira Savings Bank, FSB (Nasdaq: ESBK) today announced net income for the nine months ended September 30, 2010 totaling $3,607,000 or $1.27 per diluted share, compared to the $3,273,000 of net income or $1.15 per diluted share reported for the same period in 2009. This represents a 10% or $334,000 increase in net income and a 10% increase in diluted earnings per share.

Net income for the three months ended September 30, 2010 totaled $1,295,000 or $.47 per diluted share compared to $1,156,000 or $.40 per diluted share for the same period in 2009. This represents a 12% or $139,000 increase in net income and an 18% increase in diluted earnings per share.

Net interest income was $11.1 million for the first nine months of 2010 compared to $11.8 million for the same period last year. Noninterest income was $3.5 million compared to $3.6 million for the same period in 2009. These unfavorable variances were offset by a decrease of $1.3 million in operating expenses to $8.8 million for the first nine months of 2010 from $10.1 million for the same period in 2009, and a decrease in the provision for loan losses from $592,000 for the first nine months of 2009, to $435,000 for the first nine months of 2010.

Total assets increased by $3.7 million from $499.0 million at December 31, 2009 to $502.7 million as of September 30, 2010. Total deposits were $358.4 million as of September 30, 2010 compared to $352.6 million as of December 31, 2009. This represents a $5.8 million or 2% increase. Total loans decreased by $3.0 million or 1% from $307.6 million as of December 31, 2009 to $304.6 million as of September 30, 2010.

"During 2010, we have focused on maintaining strong asset quality, improving our operating efficiency, preparing our balance sheet for the risk of inflation, and expanding our residential mortgage loan business," said Michael P. Hosey, President and CEO. Hosey continued, "We continue to have strong asset quality ratios as we diligently monitor delinquent and nonperforming credits. Our net interest income is somewhat below last year's level as we have increased the amount of cash and short-term investments on our balance sheet, preparing to invest them in what management believes will be a future higher rate environment. Our operating expenses are $1.3 million or 13% below last year's level, an indication of our focus on maintaining operating efficiency. Additionally, we have expanded our mortgage business during 2010 by adding a full time originator in Tompkins County to bring our total originators to three in that market. We have also recently opened a loan production office in Homer, NY, and have added an experienced originator to increase our production in Cortland and Southern Onondaga County. We continue to focus on creating long-term shareholder value through continued earnings and earnings per share growth, maintaining asset quality, and managing interest rate risk."

Elmira Savings Bank, FSB with $502.7 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a federally chartered Bank with five offices in Chemung County, NY; three offices and a loan center in Tompkins County, NY; one office 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.

Elmira Savings Bank, FSB

SELECTED CONSOLIDATED INCOME STATEMENT ITEMS

(Unaudited)

(In thousands except per share amounts)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

2010

2009

Net interest income

$

3,683

$

3,971

$

11,051

$

11,809

Provision for loan losses

85

0

435

592

Gain on sale of securities

160

2

469

63

Other noninterest income

1,097

978

3,049

3,592

Total noninterest expense

2,957

3,268

8,814

10,114

Income before taxes

1,898

1,683

5,320

4,758

Net income

1,295

1,156

3,607

3,273

Dividends on preferred stock

365

365

1,086

1,044

Income available to common shareholders

930

791

2,521

2,229

Basic earnings per common share

$

0.47

$

0.41

$

1.29

$

1.16

Diluted earnings per common share

$

0.47

$

0.40

$

1.27

$

1.15

Dividends per common share

$

0.20

$

0.20

$

0.60

$

0.60

Elmira Savings Bank, FSB

SELECTED CONSOLIDATED BALANCE SHEET ITEMS

(Unaudited)

(In thousands except per share amounts)

September 30,

December 31,

September 30,

2010

2009

2009

Total assets

$

502,667

$

498,983

$

505,896

Loans receivable

304,561

307,616

316,876

Allowance for loan losses

2,863

3,139

3,223

Deposits

358,400

352,591

360,085

Borrowings

81,111

87,162

87,178

Shareholders' equity

56,988

54,546

54,298

Book value per common share

$

19.59

$

18.82

$

18.73

SOURCE Elmira Savings Bank, FSB



RELATED LINKS

http://www.elmirasavingsbank.com