U.S. markets open in 4 hours 3 minutes
  • S&P Futures

    4,174.25
    +20.75 (+0.50%)
     
  • Dow Futures

    33,360.00
    +205.00 (+0.62%)
     
  • Nasdaq Futures

    14,116.75
    +81.75 (+0.58%)
     
  • Russell 2000 Futures

    2,245.10
    +14.50 (+0.65%)
     
  • Crude Oil

    72.00
    +0.36 (+0.50%)
     
  • Gold

    1,783.00
    +14.00 (+0.79%)
     
  • Silver

    26.08
    +0.11 (+0.43%)
     
  • EUR/USD

    1.1896
    +0.0031 (+0.26%)
     
  • 10-Yr Bond

    1.4500
    0.0000 (0.00%)
     
  • Vix

    20.05
    +2.30 (+12.96%)
     
  • GBP/USD

    1.3863
    +0.0054 (+0.39%)
     
  • USD/JPY

    110.1300
    -0.0200 (-0.02%)
     
  • BTC-USD

    32,258.06
    -3,016.30 (-8.55%)
     
  • CMC Crypto 200

    797.01
    -142.93 (-15.21%)
     
  • FTSE 100

    7,023.89
    +6.42 (+0.09%)
     
  • Nikkei 225

    28,010.93
    -953.15 (-3.29%)
     

Elmira Savings Bank Reports 2020 Earnings

  • Oops!
    Something went wrong.
    Please try again later.
·16 min read
  • Oops!
    Something went wrong.
    Please try again later.

NEW YORK, Jan. 27, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,284,000 and $4,159,000 for the three and twelve months ended December 31, 2020 compared to $940,000 and $3,486,000 for the same periods in 2019.

  • Diluted earnings per share were $.37 per share and $1.19 per share for the three and twelve months ended December 31, 2020 compared to $.27 per share and $1.00 per share for the same periods in 2019.

  • Return on average assets was .78% and .64% for the three and twelve months ended December 31, 2020 compared to .61% and .57% for the three and twelve months ended December 31, 2019.

  • Return on average equity was 8.40% and 6.94% for the three and twelve months ended December 31, 2020 compared to 6.33% and 5.93% for the same periods in 2019.

"We are pleased to report an increase in earnings year-to-year, while at the same time having increased our loan loss reserves largely in response to the economic uncertainty resulting from the ongoing pandemic,” said Thomas M Carr, President and CEO. Carr continued, "We continue to be concerned about the economic impact in our region from the pandemic, but we are dedicated to continuing to provide the financial services needed in the communities we serve, balancing those efforts with prudent safety measures to minimize potential COVID health risks to our customers and staff.”

Net Income

Net income totaled $4,159,000 for the twelve months ended December 31, 2020, an increase of $673,000 or 19% from the $3,486,000 of net income recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $2,486,000 and an increase in net interest income of $152,000, offset by an increase in the provision for loan losses of $706,000, an increase in noninterest expense of $855,000, and an increase in tax expense of $404,000.

Net income totaled $1,284,000 for the three months ended December 31, 2020, an increase of $344,000 or 37% from the $940,000 recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $1,148,000 and an increase in net interest income of $151,000, offset by an increase in noninterest expense of $599,000, an increase in the provision for loan losses of $175,000, and an increase in tax expense of $181,000.

The increase in noninterest income for both the three and twelve months ended December 31, 2020 is primarily due to increases in the gain on sale of loans, reflecting higher levels of residential mortgages originated for sale to the secondary markets compared to the same periods in 2019. The increase in noninterest expense for both the three and twelve months ended December 31, 2020 reflects higher levels of salaries and benefits and other expense. The higher levels of salaries and benefits and other expense for both the three and twelve months ended December 31, 2020 are in part related to higher levels of residential mortgage originations in 2020. For the twelve months ended December 31, 2020 the increase in other expense also includes the impact of a one-time FDIC small bank assessment credit of $143,000 recognized in 2019.

For both the three and twelve months ended December 31, 2020, the increases in the provision for loan losses reflect management’s consideration of the uncertainty of ongoing economic conditions resulting from the COVID-19 pandemic and associated economic slowdown.

Basic and diluted earnings per share for the twelve months ended December 31, 2020 were both $1.19 per share compared to $1.00 per share for both for the same period in 2019. Basic and diluted earnings per share for the three months ended December 31, 2020 were both $.37 per share compared to $.27 per share for both for the same period in 2019.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2020 was 3.06% compared to 3.04% for the same period in 2019. The yield on average earning assets was 4.13% for the twelve months ended December 31, 2020 compared to 4.31% for the same period in 2019. The average cost of interest-bearing liabilities was 1.23% for the twelve months ended December 31, 2020 compared to 1.48% for the same period in 2019.

The net interest margin for the three months ended December 31, 2020 was 3.24% compared to 3.01% for the same period in 2019. The average yield on earning assets was 4.13% for the three months ended December 31, 2020 compared to 4.30% for the same period in 2019. The average cost of interest-bearing liabilities was 0.97% for the three months ended December 31, 2020 compared to 1.54% for the same period in 2019.

Assets

Total assets increased $37.8 million or 6.2% to $644.6 million at December 31, 2020 compared to $606.8 million at December 31, 2019. Loans, including loans held for sale, decreased 6% to $489.2 million at December 31, 2020 compared to December 31, 2019. The available-for-sale investment portfolio decreased $5.7 million from December 31, 2019 to December 31, 2020. Total cash and cash equivalents were $89.2 million at December 31, 2020, an increase of $77.2 million from December 31, 2019 when cash totaled $12.0 million. The $77.2 million increase in cash resulted primarily from a $31.0 million decrease in loans, including loans held for sale, and an increase of $34.8 million in deposits.

Nonperforming Loans

The nonperforming loans to total loans ratio was 1.07% at December 31, 2020 and 0.82% at December 31, 2019. Net loan charge-offs to average loans for the twelve months ended December 31, 2020 was 0.05% and was 0.11% for the twelve months ended December 31, 2019. The allowance for loan losses was 1.19% of total loans at December 31, 2020 and 0.88% of total loans at December 31, 2019.

Liabilities

Deposits totaled $547.0 million at December 31, 2020, an increase of $34.8 million or 6.8% from the December 31, 2019 total of $512.2 million. The $34.8 million increase in deposits consists of a $27.4 million increase in noninterest bearing accounts, a $12.2 million increase in savings accounts, a $12.2 million increase in interest bearing transaction accounts, and an $11.2 million increase in money market accounts, partially offset by a $28.2 million decrease in time deposits. Borrowed funds totaled $29.0 million as of December 31, 2020 and December 31, 2019.

Shareholders’ Equity

Shareholders’ equity increased $2,150,000 to $60.8 million at December 31, 2020 compared to December 31, 2019. The current level of shareholders’ equity equates to a book value per share of $17.23 at December 31, 2020, compared to $16.67 at December 31, 2019. Dividends paid for common shareholders were $0.15 and $0.68 for the three and twelve months ended December 31, 2020 and $0.23 and $0.92 for the three and twelve months ended December 31, 2019.

Elmira Savings Bank, with $644.6 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)

December 31,

December 31,

2020

2019

% Change

ASSETS

Cash and due from banks

$

89,099

$

11,954

645.3

%

Federal funds sold and other short-term investments

88

92

-4.3

%

Total cash and cash equivalents

89,187

12,046

640.4

%

Securities available for sale, at fair value

6,125

11,802

-48.1

%

Securities held to maturity - fair value $7,211

at December 31, 2020 and $7,209 at December 31, 2019

6,597

6,994

-5.7

%

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

9,054

9,944

-9.0

%

Loans held for sale

5,408

1,354

299.4

%

Loans receivable

483,768

518,871

-6.8

%

Less: Allowance for loan losses

5,755

4,576

25.8

%

Net loans

478,013

514,295

-7.1

%

Premises and equipment, net

15,876

16,210

-2.1

%

Bank-owned life insurance

15,410

14,919

3.3

%

Accrued interest receivable

1,564

1,625

-3.8

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,033

5,320

-5.4

%

Total assets

$

644,587

$

606,829

6.2

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

547,021

$

512,215

6.8

%

Borrowings

29,000

29,000

0.0

%

Other liabilities

7,805

7,003

11.5

%

Total liabilities

583,826

548,218

6.5

%

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 December 31, 2020 and at December 31, 2019

9,700

9,700

0.0

%

Common stock, $1 par value; authorized 5,000,000 shares; 3,616,770 shares issued and 3,522,887 oustanding

at December 31, 2020 and 3,606,089 shares issued and 3,512,206 outstanding at December 31, 2019

3,617

3,606

0.3

%

Additional paid-in capital

54,255

53,993

0.5

%

Retained earnings

5,197

3,432

51.4

%

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

at December 31, 2020 and December 31, 2019

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

144

32

350.0

%

Total Elmira Savings Bank shareholders' equity

60,711

58,561

3.7

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

60,761

58,611

3.7

%

Total liabilities and shareholders' equity

$

644,587

$

606,829

6.2

%



ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(in thousands, except for per share data)

2020

2019

% Change

2020

2019

% Change

Interest and dividend income:

Interest and fees on loans

$

5,262

$

5,642

-6.7

%

$

21,475

$

21,857

-1.7

%

Interest and dividends on securities

Taxable

155

218

-28.9

%

708

977

-27.5

%

Non-taxable

71

96

-26.0

%

297

427

-30.4

%

Total interest and dividend income

5,488

5,956

-7.9

%

22,480

23,261

-3.4

%

Interest expense:

Interest on deposits

968

1,585

-38.9

%

5,018

5,992

-16.3

%

Interest on borrowings

210

212

-0.9

%

882

841

4.9

%

Total interest expense

1,178

1,797

-34.4

%

5,900

6,833

-13.7

%

Net interest income

4,310

4,159

3.6

%

16,580

16,428

0.9

%

Provision for loan losses

375

200

87.5

%

1,450

744

94.9

%

Net interest income after provision for loan losses

3,935

3,959

-0.6

%

15,130

15,684

-3.5

%

Noninterest income:

Service fees

292

345

-15.4

%

1,163

1,399

-16.9

%

Gain on sale of loans held for sale

1,820

662

174.9

%

4,577

1,790

155.7

%

Gain on sale of securities

-

-

-

-

90

-

Other service fees

203

201

1.0

%

793

822

-3.5

%

Earnings on bank-owned life insurance

104

101

3.0

%

402

385

4.4

%

Other

85

47

80.9

%

284

247

15.0

%

Total noninterest income

2,504

1,356

84.7

%

7,219

4,733

52.5

%

Noninterest expense:

Salaries and benefits

2,515

2,154

16.8

%

8,965

8,537

5.0

%

Net occupancy

396

363

9.1

%

1,613

1,562

3.3

%

Equipment

476

372

28.0

%

1,669

1,517

10.0

%

Marketing and public relations

168

272

-38.2

%

693

1,060

-34.6

%

Professional fees

195

213

-8.5

%

653

574

13.8

%

Other

1,021

798

27.9

%

3,499

2,987

17.1

%

Total noninterest expense

4,771

4,172

14.4

%

17,092

16,237

5.3

%

Income before income taxes

1,668

1,143

45.9

%

5,257

4,180

25.8

%

Income taxes

379

198

91.4

%

1,093

689

58.6

%

Net income

1,289

945

36.4

%

4,164

3,491

19.3

%

Less: Net income attributable to noncontrolling interest

5

5

-

5

5

-

Net income attibutable to Elmira Savings Bank

1,284

940

36.6

%

4,159

3,486

19.3

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

1,284

$

940

36.6

%

$

4,159

$

3,486

19.3

%

Basic earnings per share

$

0.37

$

0.27

37.0

%

$

1.19

$

1.00

19.0

%

Diluted earnings per share

$

0.37

$

0.27

37.0

%

$

1.19

$

1.00

19.0

%

Weighted average shares outstanding - basic

3,511,688

3,498,955

0.4

%

3,507,910

3,495,089

0.4

%

Weighted average shares outstanding - diluted

3,511,688

3,501,487

0.3

%

3,508,722

3,500,123

0.2

%

Dividends per share

$

0.15

$

0.23

-34.8

%

$

0.68

$

0.92

-26.1

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

December 31, 2020

December 31, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

503,332

$

5,262

4.15

%

$

518,297

$

5,642

4.32

%

Short-term investments

2,348

-

0.04

730

3

1.64

Securities

22,177

226

4.04

30,290

311

4.09

Total interest-earning assets

527,857

5,488

4.13

549,317

5,956

4.30

Noninterest-earning assets

130,513

65,253

TOTAL ASSETS

$

658,370

$

614,570

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

437,689

$

968

0.88

$

434,491

$

1,585

1.45

Borrowings

43,831

210

1.87

29,000

212

2.85

Total interest-bearing liabilities

481,520

1,178

0.97

463,491

1,797

1.54

Noninterest-bearing liabilities

116,069

92,138

Shareholders' equity

60,781

58,941

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

658,370

$

614,570

Interest rate spread

3.16

%

2.76

%

Net interest income/margin

$

4,310

3.24

%

$

4,159

3.01

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Twelve Months Ended

December 31, 2020

December 31, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

516,170

$

21,475

4.14

%

$

500,066

$

21,857

4.36

%

Short-term investments

1,422

2

0.12

604

12

1.93

Securities

24,490

1,003

4.09

37,183

1,392

3.74

Total interest-earning assets

542,082

22,480

4.13

537,853

23,261

4.31

Noninterest-earning assets

104,926

68,787

TOTAL ASSETS

$

647,008

$

606,640

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

434,495

$

5,018

1.15

$

430,831

$

5,992

1.39

Borrowings

43,964

882

1.97

29,186

841

2.84

Total interest-bearing liabilities

478,459

5,900

1.23

460,017

6,833

1.48

Noninterest-bearing liabilities

108,595

87,883

Shareholders' equity

59,954

58,740

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

647,008

$

606,640

Interest rate spread

2.90

%

2.83

%

Net interest income/margin

$

16,580

3.06

%

$

16,428

3.04

%



Quarter Ended

(Dollars in Thousands, Except Per Share Data)

12/31/2020

9/30/2020

6/30/2020

3/31/2020

12/31/2019

Operating Data

Net income

$

1,284

$

948

$

909

$

1,018

$

940

Net interest income

4,310

3,852

4,137

4,281

4,159

Provision for loan losses

375

450

575

50

200

Non-interest income

2,504

1,928

1,648

1,139

1,356

Non-interest expense

4,771

4,155

4,085

4,081

4,172

Performance Statistics

Net interest margin

3.24

%

2.81

%

2.98

%

3.16

%

3.01

%

Annualized return on average assets

0.78

%

0.55

%

0.57

%

0.68

%

0.61

%

Annualized return on average equity

8.40

%

6.27

%

6.12

%

6.93

%

6.33

%

Annualized net loan charge-offs to avg loans

0.03

%

0.04

%

0.09

%

0.05

%

0.14

%

Net charge-offs

38

57

116

60

183

Efficiency ratio

70.0

%

71.9

%

70.6

%

75.3

%

75.6

%

Per Share Data

Basic earnings per share

$

0.37

$

0.27

$

0.26

$

0.29

$

0.27

Diluted earnings per share

0.37

0.27

0.26

0.29

0.27

Dividend declared per share

0.15

0.15

0.15

0.23

0.23

Book value

17.23

17.01

16.87

16.77

16.67

Common stock price:

High

13.25

11.18

13.39

17.40

15.99

Low

10.44

10.30

10.49

11.50

13.97

Close

11.50

11.02

11.00

11.50

15.10

Weighted average common shares:

Basic

3,512

3,509

3,507

3,503

3,499

Fully diluted

3,512

3,509

3,507

3,507

3,501

End-of-period common shares:

Issued

3,617

3,617

3,617

3,611

3,606

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

644,587

$

674,032

$

675,862

$

598,017

$

606,829

Loans, net

478,013

504,946

518,698

506,076

514,295

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

547,021

551,350

551,225

501,760

512,215

Noninterest-bearing

109,346

107,423

109,985

83,431

81,934

Savings

82,573

79,492

79,150

72,174

70,358

NOW

100,293

98,464

91,166

83,323

88,126

Money Market

35,920

34,375

28,467

20,306

24,724

Time deposits

218,889

231,596

242,457

242,526

247,073

Total interest-bearing deposits

437,675

443,927

441,240

418,329

430,281

Shareholders' equity

60,761

59,960

59,496

59,044

58,611

Asset Quality

Non-performing assets

$

5,304

$

5,507

$

5,578

$

4,686

$

4,723

Non-performing assets to total assets

0.82

%

0.82

%

0.83

%

0.78

%

0.78

%

Allowance for loan losses

5,755

5,418

5,025

4,566

4,576

Allowance for loan losses to total loans

1.19

%

1.06

%

0.96

%

0.89

%

0.88

%

Allowance for loan losses to

non-performing loans

112.67

%

104.11

%

95.28

%

105.43

%

108.51

%

Non-performing loans to total loans

1.07

%

1.03

%

1.02

%

0.86

%

0.82

%

Capitalization

Shareholders' equity to total assets

9.43

%

8.90

%

8.80

%

9.87

%

9.66

%


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