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CORRECTING & REPLACING -- Elmira Savings Bank Reports Second Quarter Earnings

In a release issued under the same headline yesterday by Elmira Savings Bank (ESBK) please note that the text of the release held information pertaining exclusively to the second quarter of 2018. The corrected release follows:

ELMIRA, N.Y., July 18, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (ESBK)

Highlights

  • Net income was $718,000 and $1,645,000 for the three and six months ended June 30, 2019 compared to $1,163,000 and $2,294,000 for the same periods in 2018.

  • Diluted earnings per share were $.21 per share and $.47 per share for the three and six months ended June 30, 2019 compared to $.33 per share and $.66 per share for the same periods in 2018.

  • Return on average assets was .47% and .56% for the three and six months ended June 30, 2019 compared to .83% for both the three and six months ended June 30, 2018.

  • Return on average equity was 4.92% and 5.66% for the three and six months ended June 30, 2019 compared to 8.11% and 8.07% for the same periods in 2018.

“We are pleased with our loan and deposit growth through the first half of the year. We are focused on improving profitability. We anticipate our efforts to have a positive impact during the last two quarters of the year,” said Thomas M. Carr, President and CEO.

Net Income

Net income totaled $1,645,000 for the six months ended June 30, 2019, a decrease of $649,000 or 28% from the $2,294,000 of net income recorded for the same period in 2018. This decrease was the net result of an increase in noninterest expense of $500,000, an increase in the provision for loan losses of $227,000, a decrease in net interest income of $58,000, and a decrease in noninterest income of $129,000, offset by a decrease in tax expense of $265,000.

Net income totaled $718,000 for the three months ended June 30, 2019, a decrease of $445,000 or 38% from the $1,163,000 recorded for the same period in 2018. This decrease was the net result of an increase in noninterest expense of $474,000, an increase in the provision for loan losses of $137,000, a decrease in noninterest income of $4,000, offset by and a decrease in tax expense of $153,000 and an increase in net interest income of $17,000.

Basic and diluted earnings per share for the six months ended June 30, 2019 were both $.47 per share compared to $.66 per share for both for the same period in 2018. Basic and diluted earnings per share for the three months ended June 30, 2019 were both $.21 per share compared to $.33 per share for both for the same period in 2018. Per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

Net Interest Margin

The net interest margin for the six months ended June 30, 2019 was 3.10% compared to 3.35% for the same period in 2018. The yield on average earning assets was 4.31% for the six months ended June 30, 2019 compared to 4.19% for the same period in 2018. The average cost of interest-bearing liabilities was 1.42% for the six months ended June 30, 2019 compared to .99% for the same period in 2018.

The net interest margin for the three months ended June 30, 2019 was 3.06% compared to 3.32% for the same period in 2018. The average yield on earning assets was 4.36% for the three months ended June 30, 2019 compared to 4.19% for the same period in 2018. The average cost of interest-bearing liabilities was 1.50% for the three months ended June 30, 2019 compared to 1.01% for the same period in 2018.

Assets

Total assets increased $20.4 million or 3.5% to $610.4 million at June 30, 2019 compared to $590.0 million at December 31, 2018. Loans, including loans held for sale, increased 3.8% to $502.0 million at June 30, 2019 compared to December 31, 2018. The available-for-sale investment portfolio decreased $2.4 million from December 31, 2018 to June 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.96% at June 30, 2019 and 0.94% at December 31, 2018. Net loan charge-offs to average loans for the six months ended June 30, 2019 was 0.09% and was 0.07% for the six months ended June 30, 2018. The allowance for loan losses was 0.89% of total loans at June 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $516.3 million at June 30, 2019, an increase of $24.8 million or 5.0%. The $24.8 million increase consists of an $34.3 million increase in time deposits, offset by a $4.4 million decrease in savings accounts, a $441,000 decrease in noninterest-bearing accounts, a $4.5 million decrease in interest bearing transaction accounts, and a $162,000 decrease in money market accounts. Borrowed funds totaled $29.0 million as of June 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $408,000 to $58.4 million at June 30, 2019 compared to December 31, 2018. The current level of shareholders’ equity equates to a book value per share of $16.60 at June 30, 2019, compared to $16.52 at December 31, 2018. Dividends paid for common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2019 and 2018.

Elmira Savings Bank, with $610.4 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a state-chartered bank with six 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,

2019

2018

% Change

ASSETS

Cash and due from banks

$

22,633

$

19,429

16.5

%

Federal funds sold and other short-term investments

92

94

-2.1

%

Total cash and cash equivalents

22,725

19,523

16.4

%

Securities available for sale, at fair value

22,615

25,051

-9.7

%

Securities held to maturity - fair value $7,344

at June 30, 2019, and $7,638 at December 31, 2018

7,254

7,518

-3.5

%

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

9,699

9,462

2.5

%

Loans held for sale

1,451

1,392

4.2

%

Loans receivable

500,593

482,272

3.8

%

Less: Allowance for loan losses

4,444

4,372

1.6

%

Net loans

496,149

477,900

3.8

%

Premises and equipment, net

18,723

16,846

11.1

%

Bank-owned life insurance

14,720

14,444

1.9

%

Accrued interest receivable

1,613

1,566

3.0

%

Goodwill

12,320

12,320

0.0

%

Other assets

3,129

4,018

-22.1

%

Total assets

$

610,398

$

590,040

3.5

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

516,327

$

491,517

5.0

%

Borrowings

29,000

31,000

-6.5

%

Other liabilities

6,714

9,574

-29.9

%

Total liabilities

552,041

532,091

3.7

%

Shareholders' equity:

Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares

authorized; 10,000 shares issued at June 30, 2019 and at December 31, 2018

9,700

9,700

0.0

%

Common stock, $1 par value; 5,000,000 shares authorized; 3,605,336 shares

issued at June 30, 2019 and 3,597,605 shares issued at December 31, 2018

3,605

3,598

0.2

%

Additional paid-in capital

53,892

53,784

0.2

%

Retained earnings

3,206

3,176

0.9

%

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

at June 30, 2019 and December 31, 2018

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income (loss)

106

(158

)

-167.1

%

Total Elmira Savings Bank shareholders' equity

58,307

57,898

0.7

%

Noncontrolling interest

50

51

-2.0

%

Total shareholders' equity

58,357

57,949

0.7

%

Total liabilities and shareholders' equity

$

610,398

$

590,040

3.5

%


ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in thousands, except for per share data)

2019

2018

% Change

2019

2018

% Change

Interest and dividend income:

Interest and fees on loans

$

5,464

$

4,786

14.2

%

$

10,647

$

9,582

11.1

%

Interest and dividends on securities

Taxable

252

244

3.3

%

525

496

5.8

%

Non-taxable

109

118

-7.6

%

224

238

-5.9

%

Total interest and dividend income

5,825

5,148

13.2

%

11,396

10,316

10.5

%

Interest expense:

Interest on deposits

1,519

827

83.7

%

2,780

1,577

76.3

%

Interest on borrowings

209

241

-13.3

%

419

484

-13.4

%

Total interest expense

1,728

1,068

61.8

%

3,199

2,061

55.2

%

Net interest income

4,097

4,080

0.4

%

8,197

8,255

-0.7

%

Provision for loan losses

162

25

548.0

%

294

67

338.8

%

Net interest income after provision for loan losses

3,935

4,055

-3.0

%

7,903

8,188

-3.5

%

Noninterest income:

Service fees

345

353

-2.3

%

701

741

-5.4

%

Gain on sale of loans held for sale

425

408

4.2

%

714

786

-9.2

%

Other service fees

212

208

1.9

%

414

401

3.2

%

Earnings on bank-owned life insurance

94

103

-8.7

%

186

193

-3.6

%

Other

50

58

-13.8

%

96

119

-19.3

%

Total noninterest income

1,126

1,130

-0.4

%

2,111

2,240

-5.8

%

Noninterest expense:

Salaries and benefits

2,105

1,998

5.4

%

4,125

3,945

4.6

%

Net occupancy

375

369

1.6

%

820

798

2.8

%

Equipment

401

345

16.2

%

764

682

12.0

%

Marketing and public relations

253

230

10.0

%

499

451

10.6

%

Professional fees

133

93

43.0

%

271

270

0.4

%

Other

939

697

34.7

%

1,581

1,414

11.8

%

Total noninterest expense

4,206

3,732

12.7

%

8,060

7,560

6.6

%

Income before income taxes

855

1,453

-41.2

%

1,954

2,868

-31.9

%

Income taxes

137

290

-52.8

%

309

574

-46.2

%

Net income

718

1,163

-38.3

%

1,645

2,294

-28.3

%

Less: Net income attributable to noncontrolling interest

-

-

-

-

-

-

Net income attributable to Elmira Savings Bank

718

1,163

-38.3

%

1,645

2,294

-28.3

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

718

$

1,163

-38.3

%

$

1,645

$

2,294

-28.3

%

Basic earnings per share

$

0.21

$

0.33

-36.4

%

$

0.47

$

0.66

-28.8

%

Diluted earnings per share

$

0.21

$

0.33

-36.4

%

$

0.47

$

0.66

-28.8

%

Weighted average shares outstanding - basic

3,493,298

3,477,210

0.5

%

3,492,571

3,476,037

0.5

%

Weighted average shares outstanding - diluted

3,499,335

3,491,182

0.2

%

3,500,198

3,490,227

0.3

%

Dividends per share

$

0.23

$

0.23

0.0

%

$

0.46

$

0.45

2.2

%

Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

June 30, 2019

June 30, 2018

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

492,985

$

5,464

4.42

%

$

450,018

$

4,786

4.25

%

Short-term investments

513

3

2.11

479

2

1.39

Securities

39,985

358

3.59

40,283

360

3.59

Total interest-earning assets

533,483

5,825

4.36

490,780

5,148

4.19

Noninterest-earning assets

72,842

68,385

TOTAL ASSETS

$

606,325

$

559,165

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

431,816

$

1,519

1.41

$

386,677

$

827

0.86

Borrowings

29,000

209

2.85

34,407

241

2.77

Total interest-bearing liabilities

460,816

1,728

1.50

421,084

1,068

1.01

Noninterest-bearing liabilities

86,960

80,595

Shareholders' equity

58,549

57,486

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

606,325

$

559,165

Interest rate spread

2.86

%

3.18

%

Net interest income/margin

$

4,097

3.06

%

$

4,080

3.32

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Six Months Ended

June 30, 2019

June 30, 2018

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

487,500

$

10,647

4.37

%

$

451,681

$

9,582

4.25

%

Short-term investments

496

5

2.00

456

3

1.36

Securities

40,851

744

3.66

40,898

731

3.59

Total interest-earning assets

528,847

11,396

4.31

493,035

10,316

4.19

Noninterest-earning assets

67,108

63,164

TOTAL ASSETS

$

595,955

$

556,199

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

423,792

$

2,780

1.32

$

384,263

$

1,577

0.83

Borrowings

29,376

419

2.83

34,958

484

2.75

Total interest-bearing liabilities

453,168

3,199

1.42

419,221

2,061

0.99

Noninterest-bearing liabilities

84,198

79,675

Shareholders' equity

58,589

57,303

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

595,955

$

556,199

Interest rate spread

2.89

%

3.20

%

Net interest income/margin

$

8,197

3.10

%

$

8,255

3.35

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

6/30/2019

3/31/2019

12/31/2018

9/30/2018

6/30/2018

Operating Data

Net income

$

718

$

927

$

935

$

1,010

$

1,163

Net interest income

4,097

4,100

4,225

4,090

4,080

Provision for loan losses

162

132

150

150

25

Net security gains

-

-

-

-

-

Non-interest income, ex. Net security gains

1,126

985

1,124

1,154

1,130

Non-interest expense

4,206

3,854

4,038

3,891

3,732

Performance Statistics

Net interest margin

3.06

%

3.13

%

3.26

%

3.26

%

3.32

%

Annualized return on average assets

0.47

%

0.64

%

0.65

%

0.71

%

0.83

%

Annualized return on average equity

4.92

%

6.41

%

6.39

%

6.94

%

8.11

%

Annualized net loan charge-offs to avg loans

0.09

%

0.10

%

0.17

%

0.08

%

0.09

%

Net charge-offs

105

117

199

91

96

Efficiency ratio

80.5

%

75.8

%

75.5

%

74.2

%

71.6

%

Per Share Data

Basic earnings per share

$

0.21

$

0.27

$

0.27

$

0.29

$

0.33

Diluted earnings per share

0.21

0.26

0.27

0.29

0.33

Dividend declared per share

0.23

0.23

0.23

0.23

0.23

Book value

16.60

16.59

16.52

16.42

16.36

Common stock price:

High

17.40

19.09

20.47

21.00

20.60

Low

15.69

16.32

15.77

20.10

19.29

Close

16.05

16.75

17.45

20.40

20.43

Weighted average common shares:

Basic

3,493

3,492

3,487

3,481

3,477

Fully diluted

3,499

3,501

3,499

3,497

3,491

End-of-period common shares:

Issued

3,605

3,601

3,598

3,593

3,593

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

610,398

$

596,613

$

590,040

$

570,785

$

562,924

Loans, net

496,149

484,780

477,900

462,713

448,690

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

516,327

503,089

491,517

474,449

468,293

Noninterest-bearing

81,249

76,414

81,690

78,324

76,880

Savings

71,100

71,642

75,483

71,748

73,200

NOW

85,130

85,808

89,666

89,835

87,402

Money Market

19,925

19,405

20,087

18,910

21,934

Time deposits

258,923

249,820

224,591

215,632

208,877

Total interest-bearing deposits

435,078

426,675

409,827

396,125

391,413

Shareholders' equity

58,357

58,231

57,949

57,512

57,299

Asset Quality

Non-performing assets

$

4,996

$

5,081

$

4,649

$

4,520

$

4,560

Non-performing assets to total assets

0.82

%

0.85

%

0.79

%

0.79

%

0.81

%

Allowance for loan losses

4,444

4,387

4,372

4,421

4,362

Allowance for loan losses to total loans

0.89

%

0.90

%

0.91

%

0.95

%

0.96

%

Allowance for loan losses to

non-performing loans

93.55

%

89.71

%

97.16

%

100.00

%

99.18

%

Non-performing loans to total loans

0.96

%

1.01

%

0.94

%

0.96

%

0.98

%

Capitalization

Shareholders' equity to total assets

9.56

%

9.76

%

9.82

%

10.08

%

10.18

%

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