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Elmira Savings Bank Reports Third Quarter Earnings

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ELMIRA, New York, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,511,000 and $4,117,000 for the three and nine months ended September 30, 2021 compared to $948,000 and $2,875,000 for the same periods in 2020.

  • Diluted earnings per share were $.43 per share and $1.17 per share for the three and nine months ended September 30, 2021 compared to $.27 per share and $.82 per share for the same periods in 2020.

  • Return on average assets was .92% and .85% for the three and nine months ended September 30, 2021 compared to .55% and .60% for the three and nine months ended September 30, 2020.

  • Return on average equity was 9.49% and 8.83% for the three and nine months ended September 30, 2021 compared to 6.27% and 6.44% for the same periods in 2020.

"We are pleased with the improvement in core earnings and asset quality," said Thomas M Carr, President and CEO. Carr continued, “We are focused on serving our customers and anticipate a successful transition to Community Bank, N.A. during the first quarter of 2022.”

Net Income

Net income totaled $4,117,000 for the nine months ended September 30, 2021, an increase of $1,242,000 or 43% from the $2,875,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in noninterest income of $121,000, an increase in net interest income of $1,299,000, and a decrease in the provision for loan losses of $925,000, offset by an increase in noninterest expense of $590,000 and an increase in tax expense of $513,000.

Net income totaled $1,511,000 for the three months ended September 30, 2021, an increase of $563,000 or 59% from the $948,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $856,000 and a decrease in the provision for loan losses of $450,000, offset by an increase in noninterest expense of $152,000, a decrease in noninterest income of $364,000, and an increase in tax expense of $227,000.

Basic and diluted earnings per share for the nine months ended September 30, 2021 were both $1.17 per share compared to $.82 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended September 30, 2021 were both $.43 per share compared to $.27 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2021 was 3.62% compared to 2.98% for the same period in 2020. The yield on average earning assets was 4.20% for the nine months ended September 30, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.62% for the nine months ended September 30, 2021 compared to 1.32% for the same period in 2020.

The net interest margin for the three months ended September 30, 2021 was 3.81% compared to 2.81% for the same period in 2020. The average yield on earning assets was 4.24% for the three months ended September 30, 2021 compared to 3.91% for the same period in 2020. The average cost of interest-bearing liabilities was 0.46% for the three months ended September 30, 2021 compared to 1.20% for the same period in 2020.

Assets

Total assets decreased $991,000 or 0.2% to $643.6 million at September 30, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 4.4% to $467.6 million at September 30, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $1.5 million from December 31, 2020 to September 30, 2021. Total cash and cash equivalents were $111.6 million at September 30, 2021, an increase of $22.4 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.70% at September 30, 2021 and 1.07% at December 31, 2020. Net loan charge-offs to average loans for the nine months ended September 30, 2021 was 0.08% compared to 0.06% for the nine months ended September 30, 2020. The allowance for loan losses was 1.21% of total loans at September 30, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits total $544.8 million at September 30, 2021, a decrease of $2.3 million or 0.4% from the December 31, 2020 total of $547.0 million. Borrowed funds totaled $24.0 million as of September 30, 2021, a decrease of $5.0 million from December 31, 2020 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $2,635,000 to $63.4 million at September 30, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $17.86 at September 30, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.45 for the three and nine months ended September 30, 2021 and $0.15 and $0.53 for the three and nine months ended September 30, 2020.

Elmira Savings Bank, with $643.6 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)

September 30,

December 31,

2021

2020

% Change

ASSETS

Cash and due from banks

$

111,114

$

88,536

25.5

%

Federal funds sold and other short-term investments

492

651

-24.4

%

Total cash and cash equivalents

111,606

89,187

25.1

%

Securities available for sale, at fair value

4,631

6,125

-24.4

%

Securities held to maturity - fair value $6,448

at September 30, 2021, and $7,211 at December 31, 2020

6,219

6,597

-5.7

%

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

8,220

9,054

-9.2

%

Loans held for sale

3,298

5,408

-39.0

%

Loans receivable

464,258

483,768

-4.0

%

Less: Allowance for loan losses

5,627

5,755

-2.2

%

Net loans

458,631

478,013

-4.1

%

Premises and equipment, net

15,704

15,876

-1.1

%

Bank-owned life insurance

15,807

15,410

2.6

%

Accrued interest receivable

1,391

1,564

-11.1

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,769

5,033

14.6

%

Total assets

$

643,596

$

644,587

-0.2

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

544,763

$

547,021

-0.4

%

Borrowings

24,000

29,000

-17.2

%

Other liabilities

11,437

7,805

46.5

%

Total liabilities

580,200

583,826

-0.6

%

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 September 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 September 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

54,376

54,255

0.2

%

Retained earnings

7,718

5,197

48.5

%

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

at September 30, 2021 and December 31, 2020

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

113

144

-21.5

%

Total Elmira Savings Bank shareholders' equity

63,346

60,711

4.3

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

63,396

60,761

4.3

%

Total liabilities and shareholders' equity

$

643,596

$

644,587

-0.2

%


ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

Nine Months

September 30,

Ended September 30,

(in thousands, except for per share data)

2021

2020

% Change

2021

2020

% Change

Interest and dividend income:

Interest and fees on loans

$

5,054

$

5,140

-1.7

%

$

15,127

$

16,213

-6.7

%

Interest and dividends on securities

Taxable

125

163

-23.3

%

398

553

-28.0

%

Non-taxable

66

72

-8.3

%

202

226

-10.6

%

Total interest and dividend income

5,245

5,375

-2.4

%

15,727

16,992

-7.4

%

Interest expense:

Interest on deposits

363

1,291

-71.9

%

1,632

4,050

-59.7

%

Interest on borrowings

174

232

-25.0

%

526

672

-21.7

%

Total interest expense

537

1,523

-64.7

%

2,158

4,722

-54.3

%

Net interest income

4,708

3,852

22.2

%

13,569

12,270

10.6

%

Provision for loan losses

-

450

-100.0

%

150

1,075

-86.0

%

Net interest income after provision for loan losses

4,708

3,402

38.4

%

13,419

11,195

19.9

%

Noninterest income:

Service fees

308

285

8.1

%

920

871

5.6

%

Gain on sale of loans held for sale

854

1,238

-31.0

%

2,708

2,757

-1.8

%

Other service fees

237

216

9.7

%

677

590

14.7

%

Earnings on bank-owned life insurance

107

103

3.9

%

307

298

3.0

%

Other

58

86

-32.6

%

224

199

12.6

%

Total noninterest income

1,564

1,928

-18.9

%

4,836

4,715

2.6

%

Noninterest expense:

Salaries and benefits

2,228

2,236

-0.4

%

6,687

6,450

3.7

%

Net occupancy

172

388

-55.7

%

1,175

1,217

-3.5

%

Equipment

384

408

-5.9

%

1,210

1,193

1.4

%

Marketing and public relations

254

202

25.7

%

662

525

26.1

%

Professional fees

490

143

242.7

%

794

458

73.4

%

Other

779

778

0.1

%

2,383

2,478

-3.8

%

Total noninterest expense

4,307

4,155

3.7

%

12,911

12,321

4.8

%

Income before income taxes

1,965

1,175

67.2

%

5,344

3,589

48.9

%

Income taxes

454

227

100.0

%

1,227

714

71.8

%

Net income

1,511

948

59.4

%

4,117

2,875

43.2

%

Less: Net income attributable to noncontrolling interest

-

-

-

-

-

-

Net income attributable to Elmira Savings Bank

$

1,511

$

948

59.4

%

$

4,117

$

2,875

43.2

%

Basic earnings per share

$

0.43

$

0.27

59.3

%

$

1.17

$

0.82

42.7

%

Diluted earnings per share

$

0.43

$

0.27

59.3

%

$

1.17

$

0.82

42.7

%

Weighted average shares outstanding - basic

3,522,400

3,509,421

0.4

%

3,518,775

3,506,646

0.3

%

Weighted average shares outstanding - diluted

3,523,526

3,509,421

0.4

%

3,519,663

3,507,728

0.3

%

Dividends per share

$

0.15

$

0.15

0.0

%

$

0.45

$

0.53

-15.1

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

September 30, 2021

September 30, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

470,777

$

5,054

4.26

%

$

521,294

$

5,140

3.92

%

Short-term investments

674

-

0.04

1,257

-

0.05

Securities

19,434

191

3.91

23,170

235

4.08

Total interest-earning assets

490,885

5,245

4.24

545,721

5,375

3.91

Noninterest-earning assets

160,254

136,645

TOTAL ASSETS

$

651,139

$

682,366

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

430,078

$

363

0.33

$

447,441

$

1,291

1.15

Borrowings

25,848

174

2.64

56,548

232

1.61

Total interest-bearing liabilities

455,926

537

0.46

503,989

1,523

1.20

Noninterest-bearing liabilities

132,024

118,276

Shareholders' equity

63,189

60,101

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

651,139

$

682,366

Interest rate spread

3.78

%

2.71

%

Net interest income/margin

$

4,708

3.81

%

$

3,852

2.81

%



ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Nine Months Ended

September 30, 2021

September 30, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

477,894

$

15,127

4.21

%

$

520,481

$

16,213

4.14

%

Short-term investments

573

-

0.03

1,111

2

0.18

Securities

20,296

600

3.95

25,291

777

4.10

Total interest-earning assets

498,763

15,727

4.20

546,883

16,992

4.13

Noninterest-earning assets

152,323

96,310

TOTAL ASSETS

$

651,086

$

643,193

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

434,307

$

1,632

0.50

$

433,423

$

4,050

1.25

Borrowings

26,256

526

2.64

44,008

672

2.01

Total interest-bearing liabilities

460,563

2,158

0.62

477,431

4,722

1.32

Noninterest-bearing liabilities

128,161

106,086

Shareholders' equity

62,362

59,676

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

651,086

$

643,193

Interest rate spread

3.58

%

2.81

%

Net interest income/margin

$

13,569

3.62

%

$

12,270

2.98

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

Operating Data

Net income

$

1,511

$

1,402

$

1,204

$

1,284

$

948

Net interest income

4,708

4,340

4,521

4,310

3,852

Provision for loan losses

-

-

150

375

450

Net security gains

-

-

-

-

-

Non-interest income, ex. Net security gains

1,564

1,347

1,925

2,504

1,928

Non-interest expense

4,307

3,904

4,700

4,771

4,155

Performance Statistics

Net interest margin

3.81

%

3.48

%

3.57

%

3.24

%

2.81

%

Annualized return on average assets

0.92

%

0.86

%

0.75

%

0.78

%

0.55

%

Annualized return on average equity

9.49

%

9.03

%

7.93

%

8.40

%

6.27

%

Annualized net loan charge-offs to avg loans

0.14

%

0.06

%

0.03

%

0.03

%

0.04

%

Net charge-offs

164

74

40

38

57

Efficiency ratio

68.7

%

68.6

%

72.9

%

70.0

%

71.9

%

Per Share Data

Basic earnings per share

$

0.43

$

0.40

$

0.34

$

0.37

$

0.27

Diluted earnings per share

0.43

0.40

0.34

0.37

0.27

Dividend declared per share

0.15

0.15

0.15

0.15

0.15

Book value

17.86

17.57

17.34

17.23

17.01

Common stock price:

High

14.75

15.05

15.96

13.25

11.18

Low

12.80

13.23

11.48

10.44

10.30

Close

13.34

14.31

13.50

11.50

11.02

Weighted average common shares:

Basic

3,522

3,519

3,515

3,512

3,509

Fully diluted

3,524

3,520

3,515

3,512

3,509

End-of-period common shares:

Issued

3,641

3,641

3,636

3,617

3,617

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

643,596

$

648,686

$

659,333

$

644,587

$

674,032

Loans, net

458,631

465,271

476,383

478,013

504,946

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

544,763

551,245

562,893

547,021

551,350

Noninterest-bearing

118,511

121,534

121,101

109,346

107,423

Savings

95,299

93,351

87,228

82,573

79,492

NOW

114,514

111,343

111,414

100,293

98,464

Money Market

36,577

32,624

35,011

35,920

34,375

Time deposits

179,862

192,393

208,139

218,889

231,596

Total interest-bearing deposits

426,252

429,711

441,792

437,675

443,927

Shareholders' equity

63,396

62,375

61,462

60,761

59,960

Asset Quality

Non-performing assets

$

3,645

$

5,023

$

5,602

$

5,304

$

5,507

Non-performing assets to total assets

0.57

%

0.77

%

0.85

%

0.82

%

0.82

%

Allowance for loan losses

5,627

5,791

5,865

5,755

5,418

Allowance for loan losses to total loans

1.21

%

1.23

%

1.22

%

1.19

%

1.06

%

Allowance for loan losses to

non-performing loans

175.95

%

116.12

%

108.63

%

112.67

%

104.11

%

Non-performing loans to total loans

0.70

%

1.07

%

1.13

%

1.07

%

1.03

%

Capitalization

Shareholders' equity to total assets

9.85

%

9.62

%

9.32

%

9.43

%

8.90

%

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


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