Elmira Savings Bank Reports Second Quarter Earnings

ELMIRA, N.Y., July 21, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

• Net income was $1,402,000 and $2,606,000 for the three and six months ended June 30, 2021 compared to $909,000 and $1,927,000 for the same periods in 2020.
  
  
  
  
• Diluted earnings per share were $.40 per share and $.74 per share for the three and six months ended June 30, 2021 compared to $.26 per share and $.55 per share for the same periods in 2020.  
  
  
  
  
• Return on average assets was .86% and .81% for the three and six months ended June 30, 2021 compared to .57% and .62% for the three and six months ended June 30, 2020.
  
  
  
  
• Return on average equity was 9.03% and 8.48% for the three and six months ended June 30, 2021 compared to 6.12% and 6.52% for the same periods in 2020.
  
  

"We are pleased with the improvement in earnings and net interest margin through the first half of the year," said Thomas M Carr, President and CEO.  Carr continued, "the Bank has successfully navigated through the COVID pandemic up to this point, but we recognize our local economies still face challenges ahead. We are focused on serving our customers and helping our communities return to normal as COVID restrictions continue to be lifted."

Net Income

Net income totaled $2,606,000 for the six months ended June 30, 2021, an increase of $679,000 or 35% from the $1,927,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in noninterest income of $485,000, an increase in net interest income of $443,000, and a decrease in the provision for loan losses of $475,000, offset by an increase in noninterest expense of $438,000, and an increase in tax expense of $286,000.

Net income totaled $1,402,000 for the three months ended June 30, 2021, an increase of $493,000 or 54% from the $909,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $203,000, a decrease in noninterest expense of $181,000, and a decrease in the provision for loan losses of $575,000, offset by a decrease in noninterest income of $301,000 and an increase in tax expense of $165,000.

Basic and diluted earnings per share for the six months ended June 30, 2021 were both $.74 per share compared to $.55 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended June 30, 2021 were both $.40 per share compared to $.26 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the six months ended June 30, 2021 was 3.53% compared to 3.07% for the same period in 2020. The yield on average earning assets was 4.17% for the six months ended June 30, 2021 compared to 4.24% for the same period in 2020. The average cost of interest-bearing liabilities was .70% for the six months ended June 30, 2021 compared to 1.38% for the same period in 2020.

The net interest margin for the three months ended June 30, 2021 was 3.48% compared to 2.98% for the same period in 2020. The average yield on earning assets was 4.05% for the three months ended June 30, 2021 compared to 4.11% for the same period in 2020. The average cost of interest-bearing liabilities was .62% for the three months ended June 30, 2021 compared to 1.32% for the same period in 2020.

Assets

Total assets increased $4.1 million or 0.6% to $648.7 million at June 30, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 2.5% to $476.9 million at June 30, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $1.0 million from December 31, 2020 to June 30, 2021. Total cash and cash equivalents were $107.9 million at June 30, 2021, an increase of $18.7 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.07% at both June 30, 2021 and December 31, 2020. Net loan charge-offs to average loans for the six months ended June 30, 2021 was 0.05% compared to 0.09% for the six months ended June 30, 2020. The allowance for loan losses was 1.23% of total loans at June 30, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits total $551.2 million at June 30, 2021, an increase of $4.2 million or 0.8% from the December 31, 2020 total of $547.0 million. Borrowed funds totaled $26.0 million as of June 30, 2021, a decrease of $3.0 million from December 31, 2020 when borrowed funds totaled $29.0 million.

Shareholders' Equity

Shareholders' equity increased $1,614,000 to $62.4 million at June 30, 2021 compared to December 31, 2020. The current level of shareholders' equity equates to a book value per share of $17.57 at June 30, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.30 for the three and six months ended June 30, 2021 and $0.15 and $0.38 for the three and six months ended June 30, 2020.

Elmira Savings Bank, with $648.7 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)		June 30,				December 31,
			2021				2020			% Change
ASSETS
Cash and due from banks		$	107,383			$	88,536			21.3	%
Federal funds sold and other short-term investments			488				651			-25.0	%
Total cash and cash equivalents			107,871				89,187			20.9	%
Securities available for sale, at fair value			5,082				6,125			-17.0	%
Securities held to maturity - fair value $6,571
at June 30, 2021, and $7,211 at December 31, 2020			6,339				6,597			-3.9	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost			8,290				9,054			-8.4	%
Loans held for sale			5,860				5,408			8.4	%
Loans receivable			471,062				483,768			-2.6	%
Less: Allowance for loan losses			5,791				5,755			0.6	%
Net loans			465,271				478,013			-2.7	%
Premises and equipment, net			15,595				15,876			-1.8	%
Bank-owned life insurance			15,700				15,410			1.9	%
Accrued interest receivable			1,375				1,564			-12.1	%
Goodwill			12,320				12,320			0.0	%
Other assets			4,983				5,033			-1.0	%
Total assets		$	648,686			$	644,587			0.6	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		$	551,245			$	547,021			0.8	%
Borrowings			26,000				29,000			-10.3	%
Other liabilities			9,066				7,805			16.2	%
Total liabilities			586,311				583,826			0.4	%
Shareholders' equity:
Preferred stock, $1 par value; $1,000 liquidation value per issued share; 5,000,000 shares authorized;
10,000 shares issued and none outstanding at June 30, 2021 and at December 31, 2020			9,700				9,700			0.0	%
Common stock, $1 par value; authorized 5,000,000 shares; 3,641,487 shares issued and 3,547,604 outstanding
at June 30, 2021 and 3,616,770 shares issued and 3,522,887 outstanding at December 31, 2020			3,641				3,617			0.7	%
Additional paid-in capital			54,331				54,255			0.1	%
Retained earnings			6,740				5,197			29.7	%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares
at June 30, 2021 and December 31, 2020			(12,202	)			(12,202	)		0.0	%
Accumulated other comprehensive income			115				144			-20.1	%
Total Elmira Savings Bank shareholders' equity			62,325				60,711			2.7	%
Noncontrolling interest			50				50			0.0	%
Total shareholders' equity			62,375				60,761			2.7	%
Total liabilities and shareholders' equity		$	648,686			$	644,587			0.6	%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
		Three Months Ended									Six Months
		June 30,									Ended June 30,
(in thousands, except for per share data)		2021			2020			% Change			2021			2020			% Change
Interest and dividend income:
Interest and fees on loans		$	4,861		$	5,451		-10.8	%		$	10,073		$	11,073		-9.0	%
Interest and dividends on securities
Taxable			130			177		-26.6	%			273			390		-30.0	%
Non-taxable			67			72		-6.9	%			136			154		-11.7	%
Total interest and dividend income			5,058			5,700		-11.3	%			10,482			11,617		-9.8	%
Interest expense:
Interest on deposits			544			1,342		-59.5	%			1,269			2,759		-54.0	%
Interest on borrowings			174			221		-21.3	%			352			440		-20.0	%
Total interest expense			718			1,563		-54.1	%			1,621			3,199		-49.3	%
Net interest income			4,340			4,137		4.9	%			8,861			8,418		5.3	%
Provision for loan losses			-			575		-100.0	%			150			625		-76.0	%
Net interest income after provision for loan losses			4,340			3,562		21.8	%			8,711			7,793		11.8	%
Noninterest income:
Service fees			304			255		19.2	%			612			586		4.4	%
Gain on sale of loans held for sale			643			1,084		-40.7	%			1,854			1,519		22.1	%
Other service fees			230			186		23.7	%			440			374		17.6	%
Earnings on bank-owned life insurance			98			97		1.0	%			200			195		2.6	%
Other			72			26		176.9	%			166			113		46.9	%
Total noninterest income			1,347			1,648		-18.3	%			3,272			2,787		17.4	%
Noninterest expense:
Salaries and benefits			2,152			2,070		4.0	%			4,459			4,214		5.8	%
Net occupancy			377			435		-13.3	%			1,003			829		21.0	%
Equipment			384			385		-0.3	%			826			785		5.2	%
Marketing and public relations			167			146		14.4	%			408			323		26.3	%
Professional fees			157			149		5.4	%			304			315		-3.5	%
Other			667			900		-25.9	%			1,604			1,700		-5.6	%
Total noninterest expense			3,904			4,085		-4.4	%			8,604			8,166		5.4	%
Income before income taxes			1,783			1,125		58.5	%			3,379			2,414		40.0	%
Income taxes			381			216		76.4	%			773			487		58.7	%
Net income			1,402			909		54.2	%			2,606			1,927		35.2	%
Less: Net income attributable to noncontrolling interest			-			-		-				-			-		-
Net income attibutable to Elmira Savings Bank		$	1,402		$	909		54.2	%		$	2,606		$	1,927		35.2	%
Basic earnings per share		$	0.40		$	0.26		53.8	%		$	0.74		$	0.55		34.5	%
Diluted earnings per share		$	0.40		$	0.26		53.8	%		$	0.74		$	0.55		34.5	%
Weighted average shares outstanding - basic			3,519,141			3,507,136		0.3	%			3,516,924			3,505,240		0.3	%
Weighted average shares outstanding - diluted			3,520,074			3,507,136		0.4	%			3,517,694			3,506,864		0.3	%
Dividends per share		$	0.15		$	0.15		0.0	%		$	0.30		$	0.38		-21.1	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Three Months Ended
	June 30, 2021									June 30, 2020
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	477,423		$	4,861		4.06	%		$	528,659		$	5,451		4.12	%
Short-term investments		429			-		0.02				1,328			-		0.02
Securities		20,207			197		3.91				24,909			249		4.01
Total interest-earning assets		498,059			5,058		4.05				554,896			5,700		4.11
Noninterest-earning assets		155,769									92,109
TOTAL ASSETS	$	653,828								$	647,005
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits	$	436,184		$	544		0.50			$	431,681		$	1,342		1.25
Borrowings		26,000			174		2.64				43,583			221		2.01
Total interest-bearing liabilities		462,184			718		0.62				475,264			1,563		1.32
Noninterest-bearing liabilities		129,345									111,951
Shareholders' equity		62,299									59,790
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	653,828								$	647,005
Interest rate spread							3.43	%								2.79	%
Net interest income/margin				$	4,340		3.48	%					$	4,137		2.98	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Six Months Ended
	June 30, 2021									June 30, 2020
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	481,512		$	10,073		4.19	%		$	520,069		$	11,073		4.25	%
Short-term investments		523			-		0.02				1,037			1		0.27
Securities		20,733			409		3.96				26,364			543		4.12
Total interest-earning assets		502,768			10,482		4.17				547,470			11,617		4.24
Noninterest-earning assets		148,290									75,922
TOTAL ASSETS	$	651,058								$	623,392
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits	$	436,456		$	1,269		0.59			$	426,337		$	2,759		1.30
Borrowings		26,464			352		2.64				37,669			440		2.31
Total interest-bearing liabilities		462,920			1,621		0.70				464,006			3,199		1.38
Noninterest-bearing liabilities		126,196									99,925
Shareholders' equity		61,942									59,461
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	651,058								$	623,392
Interest rate spread							3.47	%								2.86	%
Net interest income/margin				$	8,861		3.53	%					$	8,418		3.07	%

						Quarter Ended
(Dollars in Thousands, Except Per Share Data)				6/30/2021			3/31/2021			12/31/2020			9/30/2020			6/30/2020
Operating Data
	Net income		$	1,402		$	1,204		$	1,284		$	948		$	909
	Net interest income			4,340			4,521			4,310			3,852			4,137
	Provision for loan losses			-			150			375			450			575
	Non-interest income			1,347			1,925			2,504			1,928			1,648
	Non-interest expense			3,904			4,700			4,771			4,155			4,085
Performance Statistics
	Net interest margin			3.48	%		3.57	%		3.24	%		2.81	%		2.98	%
	Annualized return on average assets			0.86	%		0.75	%		0.78	%		0.55	%		0.57	%
	Annualized return on average equity			9.03	%		7.93	%		8.40	%		6.27	%		6.12	%
	Annualized net loan charge-offs to avg loans			0.06	%		0.03	%		0.03	%		0.04	%		0.09	%
	Net charge-offs			74			40			38			57			116
	Efficiency ratio			68.6	%		72.9	%		70.0	%		71.9	%		70.6	%
Per Share Data
	Basic earnings per share		$	0.40		$	0.34		$	0.37		$	0.27		$	0.26
	Diluted earnings per share			0.40			0.34			0.37			0.27			0.26
	Dividend declared per share			0.15			0.15			0.15			0.15			0.15
	Book value			17.57			17.34			17.23			17.01			16.87
	Common stock price:
		High		15.05			15.96			13.25			11.18			13.39
		Low		13.23			11.48			10.44			10.30			10.49
		Close		14.31			13.50			11.50			11.02			11.00
	Weighted average common shares:
		Basic		3,519			3,515			3,512			3,509			3,507
		Fully diluted		3,520			3,515			3,512			3,509			3,507
	End-of-period common shares:
		Issued		3,641			3,636			3,617			3,617			3,617
		Treasury		94			94			94			94			94
Financial Condition Data:
General
	Total assets		$	648,686		$	659,333		$	644,587		$	674,032		$	675,862
	Loans, net			465,271			476,383			478,013			504,946			518,698
	Intangibles			12,320			12,320			12,320			12,320			12,320
	Total deposits			551,245			562,893			547,021			551,350			551,225
		Noninterest-bearing		121,534			121,101			109,346			107,423			109,985
		Savings		93,351			87,228			82,573			79,492			79,150
		NOW		111,343			111,414			100,293			98,464			91,166
		Money Market		32,624			35,011			35,920			34,375			28,467
		Time deposits		192,393			208,139			218,889			231,596			242,457
		Total interest-bearing deposits		429,711			441,792			437,675			443,927			441,240
	Shareholders' equity			62,375			61,462			60,761			59,960			59,496
Asset Quality
	Non-performing assets		$	5,023		$	5,602		$	5,304		$	5,507		$	5,578
	Non-performing assets to total assets			0.77	%		0.85	%		0.82	%		0.82	%		0.83	%
	Allowance for loan losses			5,791			5,865			5,755			5,418			5,025
	Allowance for loan losses to total loans			1.23	%		1.22	%		1.19	%		1.06	%		0.96	%
	Allowance for loan losses to
		non-performing loans		116.12	%		108.63	%		112.67	%		104.11	%		95.28	%
	Non-performing loans to total loans			1.07	%		1.13	%		1.07	%		1.03	%		1.02	%
Capitalization
	Shareholders' equity to total assets			9.62	%		9.32	%		9.43	%		8.90	%		8.80	%

For further information contact:

Thomas M. Carr, President & CEO

Elmira Savings Bank

333 East Water Street

Elmira, New York 14901

(607) 735-8660

[email protected]