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Elmira Savings Bank Reports First Quarter Earnings

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Elmira Savings Bank NY (The)
Elmira Savings Bank NY (The)

ELMIRA, N.Y., April 27, 2022 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ: ESBK)

Highlights

  • Net income was $1,168,000 for the three months ended March 31, 2022, compared to $1,204,000 for the same period in 2021.

  • Diluted earnings per share were $.33 per share for the three months ended March 31, 2022, compared to $.34 per share for the same period in 2021.

  • Return on average assets was .76% for the three months ended March 31, 2022, and .75% for the same period in 2021.

  • Return on average equity was 7.32% for the three months ended March 31, 2022, compared to 7.93% for the same period in 2021.

"Earnings per share and return on assets are consistent with last year’s first quarter, as we work diligently towards the merger and integration with Community Bank, N.A, which is expected to take place in the second quarter," said Thomas M Carr, President and CEO.

Net Income

Net income totaled $1,168,000 for the three months ended March 31, 2022, a decrease of $36,000 or 3.0% from the $1,204,000 recorded for the same period in 2021. This decrease was the net result of a decrease in net interest income of $399,000 and a decrease in noninterest income of $1,038,000, offset by a decrease in the provision for loan losses of $150,000, a decrease in noninterest expense of $1,177,000, and a decrease in tax expense of $74,000.

Basic and diluted earnings per share for the three months ended March 31, 2022 were both $.33 per share compared to $.34 per share for both for the same period in 2021.

The decrease in noninterest income for the three months ended March 31, 2022 is primarily due to a decrease in the gain on sale of loans, reflecting lower levels of residential mortgages originated for sale to the secondary markets compared to the same period in 2021. The decrease in noninterest expense for the three months ended March 31, 2022 reflects lower levels of salaries and benefits, occupancy expense, and all other expense categories. The lower levels of salaries and benefits and all other expense categories relate to staffing reductions and controlled spending reductions leading up to the upcoming merger.

Net Interest Margin

The net interest margin for the three months ended March 31, 2022 was 3.46% compared to 3.57% for the first quarter of 2021. The yield on average earning assets was 3.79% for the three months ended March 31, 2022, compared to 4.29% for the same period in 2021. The average cost of interest-bearing liabilities was 0.36% for the three months ended March 31, 2022, compared to 0.79% for the three months ended March 31, 2021.

Assets

Total assets decreased $18.9 million or 3.0% to $613.4 million at March 31, 2022, compared to $632.2 million at December 31, 2021. Loans receivable decreased 1.4% to $457.9 million at March 31, 2022, compared to December 31, 2021. The available-for-sale investment portfolio decreased $470,000 from December 31, 2021 to March 31, 2022, and cash and cash equivalents decreased by $10.7 million from December 31, 2021 to March 31, 2022. The decrease in cash resulted primarily from a $17.6 million decrease in deposits.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.83% at March 31, 2022, and 0.70% at December 31, 2021. Net loan charge-offs to average loans for the three months ended March 31, 2022 was .05% and .03% for the three months ended March 31, 2021. The allowance for loan losses was 1.22% of total loans at March 31, 2022 and 1.21% at December 31, 2021.

Liabilities

Deposits totaled $523.4 million at March 31, 2022, a decrease of $17.6 million or 3.3% from the December 31, 2021 total of $541.0 million. Borrowed funds decreased by $2.0 million from December 31, 2021 to $20.0 million at March 31, 2022.

Shareholders’ Equity

Shareholders’ equity increased $677,000 to $64.7 million at March 31, 2022 compared to December 31, 2021. The current level of shareholders’ equity equates to a book value per share of $18.16 at March 31, 2022, compared to $18.02 at December 31, 2021. Dividends paid to common shareholders were $0.15 for the three months ended March 31, 2022 and March 31, 2021.

Elmira Savings Bank, with $613.4 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.

On October 4, 2021, Elmira Savings Bank, in a joint press release with Community Bank System, Inc. (NYSE: CBU), announced that it had entered into a definitive agreement to be acquired by Community Bank System’s bank subsidiary, Community Bank, N.A. for approximately $82.8 million in cash. Community Bank System, with reported assets of over $15.3 billion, is headquartered in DeWitt, New York and is among the country’s 125 largest banking institutions. On December 14, 2021, at a Special Shareholders Meeting the shareholders of Elmira Savings Bank approved the merger with more than 98% of the votes cast in favor of the merger. On April 22, 2022, Community Bank, N.A. announced that it had received regulatory approvals to complete its merger with Elmira Savings Bank. The acquisition is expected to be complete effective close of business May 13, 2022, subject to customary closing conditions and approval from the New York State Department of Financial Services.

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.

For further information contact:
Thomas M. Carr, President & CEO
Elmira Savings Bank
333 East Water Street
Elmira, New York 14901
(607) 735-8660
tcarr@elmirasavingsbank.com

ELMIRA SAVINGS BANK

CONSOLIDATED BALANCE SHEET

(unaudited)

(in thousands, except for share and per share data)

March 31,

December 31,

2022

2021

% Change

ASSETS

Cash and due from banks

$

90,905

$

99,785

-8.9

%

Federal funds sold and other short-term investments

195

2,058

-90.5

%

Total cash and cash equivalents

91,100

101,843

-10.5

%

Securities available for sale, at fair value

3,639

4,109

-11.4

%

Securities held to maturity - fair value $5,982

at March 31, 2022, and $6,315 at December 31, 2021

5,992

6,080

-1.4

%

Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost

7,975

8,087

-1.4

%

Loans held for sale

435

2,374

-81.7

%

Loans receivable

457,900

464,246

-1.4

%

Less: Allowance for loan losses

5,569

5,620

-0.9

%

Net loans

452,331

458,626

-1.4

%

Premises and equipment, net

16,397

15,558

5.4

%

Bank-owned life insurance

16,019

15,914

0.7

%

Accrued interest receivable

1,376

1,380

-0.3

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,787

5,941

-2.6

%

Total assets

$

613,371

$

632,232

-3.0

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

523,402

$

540,999

-3.3

%

Borrowings

20,000

22,000

-9.1

%

Other liabilities

5,315

5,256

1.1

%

Total liabilities

548,717

568,255

-3.4

%

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 March 31, 2022 and at December 31, 2021

9,700

9,700

0.0

%

Common stock, $1 par value; authorized 5,000,000 shares; 3,651,426 shares issued and 3,557,543 outstanding

at March 31, 2022 and 3,641,487 shares issued and 3,547,604 outstanding at December 31, 2021

3,651

3,641

0.3

%

Additional paid-in capital

54,551

54,421

0.2

%

Retained earnings

8,922

8,288

7.6

%

Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares

at March 31, 2022 and December 31, 2021

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive (loss) income

(18

)

79

-122.8

%

Total Elmira Savings Bank shareholders' equity

64,604

63,927

1.1

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

64,654

63,977

1.1

%

Total liabilities and shareholders' equity

$

613,371

$

632,232

-3.0

%


ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

March 31,

(in thousands, except for per share data)

2022

2021

% Change

Interest and dividend income:

Interest and fees on loans

$

4,338

$

5,212

-16.8

%

Interest and dividends on securities

Taxable

112

143

-21.7

%

Non-taxable

62

69

-10.1

%

Total interest and dividend income

4,512

5,424

-16.8

%

Interest expense:

Interest on deposits

250

725

-65.5

%

Interest on borrowings

140

178

-21.3

%

Total interest expense

390

903

-56.8

%

Net interest income

4,122

4,521

-8.8

%

Provision for loan losses

-

150

-100.0

%

Net interest income after provision for loan losses

4,122

4,371

-5.7

%

Noninterest income:

Service fees

302

308

-1.9

%

Gain on sale of loans held for sale

255

1,211

-78.9

%

Other service fees

201

210

-4.3

%

Earnings on bank-owned life insurance

105

101

4.0

%

Other

24

95

-74.7

%

Total noninterest income

887

1,925

-53.9

%

Noninterest expense:

Salaries and benefits

1,761

2,307

-23.7

%

Net occupancy

412

626

-34.2

%

Equipment

390

442

-11.8

%

Marketing and public relations

92

241

-61.8

%

Professional fees

87

147

-40.8

%

Other

781

937

-16.6

%

Total noninterest expense

3,523

4,700

-25.0

%

Income before income taxes

1,486

1,596

-6.9

%

Income taxes

318

392

-18.9

%

Net income

1,168

1,204

-3.0

%

Less: Net income attributable to noncontrolling interest

-

-

-

Net income attributable to Elmira Savings Bank

$

1,168

$

1,204

-3.0

%

Basic earnings per share

$

0.33

$

0.34

-2.9

%

Diluted earnings per share

$

0.33

$

0.34

-2.9

%

Weighted average shares outstanding - basic

3,533,077

3,514,650

0.5

%

Weighted average shares outstanding - diluted

3,560,126

3,515,256

1.3

%

Dividends per share

$

0.15

$

0.15

0.0

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

March 31, 2022

March 31, 2021

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

458,353

$

4,338

3.80

%

$

485,646

$

5,212

4.31

%

Short-term investments

1,781

-

0.06

617

-

0.02

Securities

18,025

174

3.89

21,267

212

4.01

Total interest-earning assets

478,159

4,512

3.79

507,530

5,424

4.29

Noninterest-earning assets

143,931

140,728

TOTAL ASSETS

$

622,090

$

648,258

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

414,018

$

250

0.24

$

436,731

$

725

0.67

Borrowings

21,978

140

2.55

26,933

178

2.65

Total interest-bearing liabilities

435,996

390

0.36

463,664

903

0.79

Noninterest-bearing liabilities

121,433

123,014

Shareholders' equity

64,661

61,580

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

622,090

$

648,258

Interest rate spread

3.43

%

3.50

%

Net interest income/margin

$

4,122

3.46

%

$

4,521

3.57

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

3/31/2022

12/31/2021

9/30/2021

6/30/2021

3/31/2021

Operating Data

Net income

$

1,168

$

1,102

$

1,511

$

1,402

$

1,204

Net interest income

4,122

4,437

4,708

4,340

4,521

Provision for loan losses

-

-

-

-

150

Non-interest income, ex. Net security gains

887

1,158

1,564

1,347

1,925

Non-interest expense

3,523

4,187

4,307

3,904

4,700

Performance Statistics

Net interest margin

3.46

%

3.65

%

3.81

%

3.48

%

3.57

%

Annualized return on average assets

0.76

%

0.69

%

0.92

%

0.86

%

0.75

%

Annualized return on average equity

7.32

%

6.82

%

9.49

%

9.03

%

7.93

%

Annualized net loan charge-offs to avg loans

0.05

%

0.01

%

0.14

%

0.06

%

0.03

%

Net charge-offs

52

7

164

74

40

Efficiency ratio

70.3

%

74.8

%

68.7

%

68.6

%

72.9

%

Per Share Data

Basic earnings per share

$

0.33

$

0.31

$

0.43

$

0.40

$

0.34

Diluted earnings per share

0.33

0.31

0.43

0.40

0.34

Dividend declared per share

0.15

0.15

0.15

0.15

0.15

Book value

18.16

18.02

17.86

17.57

17.34

Common stock price:

High

23.00

23.22

14.75

15.05

15.96

Low

22.69

13.50

12.80

13.23

11.48

Close

22.93

22.84

13.34

14.31

13.50

Weighted average common shares:

Basic

3,533

3,526

3,522

3,519

3,515

Fully diluted

3,560

3,553

3,524

3,520

3,515

End-of-period common shares:

Issued

3,651

3,641

3,641

3,641

3,636

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

613,371

$

632,232

$

643,596

$

648,686

$

659,333

Loans, net

452,331

458,626

458,631

465,271

476,383

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

523,402

540,999

544,763

551,245

562,893

Noninterest-bearing

115,680

122,268

118,511

121,534

121,101

Savings

99,642

97,479

95,299

93,351

87,228

NOW

109,999

112,519

114,514

111,343

111,414

Money Market

30,233

34,626

36,577

32,624

35,011

Time deposits

167,848

174,107

179,862

192,393

208,139

Total interest-bearing deposits

407,722

418,731

426,252

429,711

441,792

Shareholders' equity

64,654

63,977

63,396

62,375

61,462

Asset Quality

Non-performing assets

$

4,173

$

3,675

$

3,645

$

5,023

$

5,602

Non-performing assets to total assets

0.68

%

0.58

%

0.57

%

0.77

%

0.85

%

Allowance for loan losses

5,569

5,620

5,627

5,791

5,865

Allowance for loan losses to total loans

1.22

%

1.21

%

1.21

%

1.23

%

1.22

%

Allowance for loan losses to

non-performing loans

148.98

%

174.37

%

175.95

%

116.12

%

108.63

%

Non-performing loans to total loans

0.83

%

0.70

%

0.70

%

1.07

%

1.13

%

Capitalization

Shareholders' equity to total assets

10.54

%

10.12

%

9.85

%

9.62

%

9.32

%


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