ELMIRA, N.Y., Oct. 10 /PRNewswire-FirstCall/ -- Elmira Savings Bank, FSB today announced net income for the nine months ended September 30, 2008 totaling $1,864,000 or $.61 per diluted share, compared to the $1,948,000 or $1.21 per diluted share reported for the same period in 2007.
Net income for the three months ended September 30, 2008 totaled $727,000 or $.26 per diluted share compared to $707,000 or $.44 per diluted share for the same period in 2007.
Total assets increased by $72.5 million from September 30, 2007 to $462.6 million at September 30, 2008. Total assets increased by $8.9 million or 2% from December 31, 2007 to September 30, 2008. Total loans increased by $65.2 million from September 30, 2007 to $324.0 million on September 30, 2008. The growth in loans was focused on mortgage loans which increased by $45.3 million. Total loans increased by $24.1 million or 8% from December 31, 2007 to September 30, 2008. Deposits increased by $56.0 million or 20% from September 30, 2007 to $341.2 million on September 30, 2008. Total deposits decreased by $15.2 million or 4% from December 31, 2007 to September 30 2008. Included in the above totals are $36 million of loans and $78.9 million of deposits acquired in the fourth quarter of 2007 through the acquisition of branches.
"We are pleased to report another quarter of financial progress. We have completed the implementation of our $1.1 million pre-tax, annual cost reduction and revenue enhancement strategies," said Michael P. Hosey, Chief Executive Officer and President of Elmira Savings Bank. Hosey continued, "The impact of these strategies has affected our third quarter results modestly and will fully impact our earnings during the fourth quarter and into future periods. In addition, we have also worked diligently on enhancing the Bank's net interest margin, which was 2.90% in the first quarter of 2008, and has improved to approximately 3.47% for the third quarter of 2008.
"During the third quarter we announced a definitive agreement to sell our Mansfield, PA, office, which has approximately $18 million in deposits, to First Citizens Bank of Mansfield, PA, for a weighted average premium on deposits of 10%. We are undertaking this transaction to allow us to focus on our central New York markets."
"We would like to make clear to our shareholders and customers that we do not have a subprime mortgage product and have not invested in privately issued mortgage-backed securities or mortgage-backed securities backed by subprime mortgages. Additionally, we have not invested in FNMA or FHLMC stocks or corporate bonds. Due to this conservative investment philosophy, we have so far avoided the issues many other banks have faced with these types of investments. We are a well-capitalized institution committed to improving our earnings for our shareholders and remaining a local independent bank for our customers and employees."
Elmira Savings Bank, FSB with $462.6 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; and one office in Tioga County, PA.
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,
2008 2007 2008 2007
Net interest income $ 3,616 $ 2,677 $10,012 $ 7,767
Provision for loan
losses 245 180 419 240
Gain on sale of
securities
available-for-sale 17 44 379 61
Other noninterest income 1,044 700 2,621 1,725
Total noninterest expense 3,384 2,260 10,000 6,615
Income before taxes 1,048 981 2,593 2,698
Net income 727 707 1,864 1,948
Dividend on preferred
stock 230 0 685 0
Net income available to
common shareholders 497 707 1,179 1,948
Basic earnings per common
share (1) $ 0.26 $ 0.44 $ 0.62 $ 1.22
Diluted earnings per
common share (1) $ 0.26 $ 0.44 $ 0.61 $ 1.21
Dividends per common
share (1) $ 0.20 $ 0.20 $ 0.60 $ 0.55
Elmira Savings Bank, FSB
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
(Unaudited)
(In thousands except per share amounts)
September 30 December 31 September 30
2008 2007 2007
Total assets $462,562 $453,687 $390,020
Loans, net 324,020 299,887 258,853
Allowance for Loan Losses 2,662 2,478 1,786
Deposits 341,212 356,424 285,248
Borrowings 76,119 52,776 77,494
Shareholders' equity 40,369 41,019 25,364
Book value per common share (1) $ 15.99 $ 16.28 $ 15.77
(1) Per share data have been adjusted to reflect the 10%
stock dividend, or 174,220 shares, distributed on June 27, 2008.
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