(By Balaseshan) Elmira Savings Bank (NASDAQ: ESBK) reported a 0.9% rise in quarterly earnings on higher non-interest income and a reduction in provision for loan losses, partially offset by a 2.8% decline in net interest income and an increase in non-interest expense.
Earnings for the fourth quarter were $893,000 or $0.37 per share, compared to $885,000 or $0.38 per share last year.
Net interest income declined 2.8% to $3.74 million, while non-interest income grew 10.6% to $1.53 million. Provision for loan losses fell 70.2% to $42,000. Non-interest expense rose 4.3% to $3.30 million.
The net interest margin for latest quarter decreased to 3.25% from 3.45%, while average yield on earning assets fell to 4.45% from 4.87%. The average cost of interest-bearing liabilities was 1.37%, down from 1.60% for the same period in 2011.
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Total assets increased $13.5 million or 2.6% to $536.9 million at December 31, 2012. Loans receivable increased 9.3% to $378.1 million at December 31, 2012. The available-for-sale investment portfolio decreased $19.7 million.
Deposits grew $27.84 million or $7.3% to $409.56 million at December 31, 2012, primarily consists of an $8.8 million increase in non-interest bearing deposits, a $7.8 million increase in NOW accounts, and a $7.4 million increase in time deposits. Borrowed funds declined by $16.0 million or 22.9%.
ESBK is trading up 0.26% at $23.31 on Wednesday. The stock has been trading between $15.66 and $24.25 for the past 52 weeks.