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Elmira Savings Bank Reports 2021 Earnings

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ELMIRA, N.Y., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,102,000 and $5,219,000 for the three and twelve months ended December 31, 2021 compared to $1,284,000 and $4,159,000 for the same periods in 2020.

  • Diluted earnings per share were $.31 per share and $1.48 per share for the three and twelve months ended December 31, 2021 compared to $.37 per share and $1.19 per share for the same periods in 2020.

  • Return on average assets was .69% and .81% for the three and twelve months ended December 31, 2021 compared to .78% and .64% for the three and twelve months ended December 31, 2020.

  • Return on average equity was 6.82% and 8.31% for the three and twelve months ended December 31, 2021 compared to 8.40% and 6.94% for the same periods in 2020.

"We are pleased to report an increase in earnings year-to-year, highlighted by residential mortgage originations exceeding $145 million." said Thomas M Carr, President and CEO. Carr continued, “The merger and integration with Community Bank, N.A, overwhelmingly approved by our shareholders in December, is expected to occur in the second quarter of 2022, instead of the first quarter as had been originally announced.”

Net Income

Net income totaled $5,219,000 for the twelve months ended December 31, 2021, an increase of $1,060,000 or 26% from the $4,159,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $1,426,000 and a decrease in the provision for loan losses of $1,300,000, offset by a decrease in noninterest income of $1,225,000, an increase in noninterest expense of $6,000, and an increase in tax expense of $435,000.

Net income totaled $1,102,000 for the three months ended December 31, 2021, a decrease of $182,000 or 14% from the $1,284,000 recorded for the same period in 2020. This decrease was the net result of a decrease in noninterest income of $1,346,000, offset by an increase in net interest income of $127,000, a decrease in noninterest expense of $584,000, a decrease in the provision for loan losses of $375,000, and a decrease in tax expense of $78,000.

The decrease in noninterest income for both the three and twelve months ended December 31, 2021 is primarily due to decreases in the gain on sale of loans, reflecting lower levels of residential mortgages originated for sale to the secondary markets compared to the same periods in 2020.

For both the three and twelve months ended December 31, 2021, the decreases in the provision for loan losses reflect the higher provisions in 2020 that resulted from management’s consideration of the uncertainty of ongoing economic conditions resulting from the COVID-19 pandemic and associated economic slowdown during that time. Management did not determine it necessary to continue a similar level of provisions for loan losses in 2021, as the allowance for loan losses was determined to already be at adequate levels during 2021.

Basic and diluted earnings per share for the twelve months ended December 31, 2021 were both $1.48 per share compared to $1.19 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended December 31, 2021 were both $.31 per share compared to $.37 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2021 was 3.64% compared to 3.06% for the same period in 2020. The yield on average earning assets was 4.15% for the twelve months ended December 31, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.56% for the twelve months ended December 31, 2021 compared to 1.23% for the same period in 2020.

The net interest margin for the three months ended December 31, 2021 was 3.65% compared to 3.24% for the same period in 2020. The average yield on earning assets was 4.00% for the three months ended December 31, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.38% for the three months ended December 31, 2021 compared to 0.97% for the same period in 2020.

Assets

Total assets decreased $12.4 million or 1.9% to $632.2 million at December 31, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 5% to $466.6 million at December 31, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $2.0 million from December 31, 2020 to December 31, 2021. Total cash and cash equivalents were $101.8 million at December 31, 2021, an increase of $12.6 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

The nonperforming loans to total loans ratio was 0.70% at December 31, 2021 and 1.07% at December 31, 2020. Net loan charge-offs to average loans for the twelve months ended December 31, 2021 was 0.06% and was 0.05% for the twelve months ended December 31, 2020. The allowance for loan losses was 1.21% of total loans at December 31, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits totaled $541.0 million at December 31, 2021, a decrease of $6.0 million or 1.1% from the December 31, 2020 total of $547.0 million. The $6.0 million decrease in deposits consists of a $12.9 million increase in noninterest bearing accounts, a $14.9 million increase in savings accounts, and a $12.2 million increase in interest bearing transaction accounts, offset by a $1.3 million decrease in money market accounts and an $18.9 million decrease in time deposits. Borrowed funds totaled $22.0 million as of December 31, 2021 and $29.0 million at December 31, 2020.

Shareholders’ Equity

Shareholders’ equity increased $3,216,000 to $64.0 million at December 31, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $18.02 at December 31, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.60 for the three and twelve months ended December 31, 2021 and $0.15 and $0.68 for the three and twelve months ended December 31, 2020.

Elmira Savings Bank, with $632.2 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.

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)

December 31,

December 31,

2021

2020

% Change

ASSETS

Cash and due from banks

$

99,785

$

88,536

12.7

%

Federal funds sold and other short-term investments

2,058

651

216.1

%

Total cash and cash equivalents

101,843

89,187

14.2

%

Securities available for sale, at fair value

4,109

6,125

-32.9

%

Securities held to maturity - fair value $6,315

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

6,080

6,597

-7.8

%

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

8,087

9,054

-10.7

%

Loans held for sale

2,374

5,408

-56.1

%

Loans receivable

464,246

483,768

-4.0

%

Less: Allowance for loan losses

5,620

5,755

-2.3

%

Net loans

458,626

478,013

-4.1

%

Premises and equipment, net

15,558

15,876

-2.0

%

Bank-owned life insurance

15,914

15,410

3.3

%

Accrued interest receivable

1,380

1,564

-11.8

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,941

5,033

18.0

%

Total assets

$

632,232

$

644,587

-1.9

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

540,999

$

547,021

-1.1

%

Borrowings

22,000

29,000

-24.1

%

Other liabilities

5,256

7,805

-32.7

%

Total liabilities

568,255

583,826

-2.7

%

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, 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 December 31, 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

54,421

54,255

0.3

%

Retained earnings

8,288

5,197

59.5

%

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

at December 31, 2021 and December 31, 2020

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

79

144

-45.1

%

Total Elmira Savings Bank shareholders' equity

63,927

60,711

5.3

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

63,977

60,761

5.3

%

Total liabilities and shareholders' equity

$

632,232

$

644,587

-1.9

%


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)

2021

2020

% Change

2021

2020

% Change

Interest and dividend income:

Interest and fees on loans

$

4,683

$

5,262

-11.0

%

$

19,810

$

21,475

-7.8

%

Interest and dividends on securities

Taxable

117

155

-24.5

%

515

708

-27.3

%

Non-taxable

64

71

-9.9

%

266

297

-10.4

%

Total interest and dividend income

4,864

5,488

-11.4

%

20,591

22,480

-8.4

%

Interest expense:

Interest on deposits

281

968

-71.0

%

1,913

5,018

-61.9

%

Interest on borrowings

146

210

-30.5

%

672

882

-23.8

%

Total interest expense

427

1,178

-63.8

%

2,585

5,900

-56.2

%

Net interest income

4,437

4,310

2.9

%

18,006

16,580

8.6

%

Provision for loan losses

-

375

-100.0

%

150

1,450

-89.7

%

Net interest income after provision for loan losses

4,437

3,935

12.8

%

17,856

15,130

18.0

%

Noninterest income:

Service fees

317

292

8.6

%

1,237

1,163

6.4

%

Gain on sale of loans held for sale

491

1,820

-73.0

%

3,199

4,577

-30.1

%

Other service fees

215

203

5.9

%

892

793

12.5

%

Earnings on bank-owned life insurance

108

104

3.8

%

415

402

3.2

%

Other

27

85

-68.2

%

251

284

-11.6

%

Total noninterest income

1,158

2,504

-53.8

%

5,994

7,219

-17.0

%

Noninterest expense:

Salaries and benefits

2,422

2,515

-3.7

%

9,109

8,965

1.6

%

Net occupancy

387

396

-2.3

%

1,562

1,613

-3.2

%

Equipment

436

476

-8.4

%

1,646

1,669

-1.4

%

Other

942

1,384

-31.9

%

4,781

4,845

-1.3

%

Total noninterest expense

4,187

4,771

-12.2

%

17,098

17,092

0.0

%

Income before income taxes

1,408

1,668

-15.6

%

6,752

5,257

28.4

%

Income taxes

301

379

-20.6

%

1,528

1,093

39.8

%

Net income

1,107

1,289

-14.1

%

5,224

4,164

25.5

%

Less: Net income attributable to noncontrolling interest

5

5

-

5

5

-

Net income attributable to Elmira Savings Bank

1,102

1,284

-14.2

%

5,219

4,159

25.5

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

1,102

$

1,284

-14.2

%

$

5,219

$

4,159

25.5

%

Basic earnings per share

$

0.31

$

0.37

-16.2

%

$

1.48

$

1.19

24.4

%

Diluted earnings per share

$

0.31

$

0.37

-16.2

%

$

1.48

$

1.19

24.4

%

Weighted average shares outstanding - basic

3,525,536

3,511,688

0.4

%

3,520,476

3,507,910

0.4

%

Weighted average shares outstanding - diluted

3,553,083

3,511,688

1.2

%

3,528,029

3,508,722

0.6

%

Dividends per share

$

0.15

$

0.15

0.0

%

$

0.60

$

0.68

-11.8

%



ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

December 31, 2021

December 31, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

463,287

$

4,683

4.01

%

$

503,332

$

5,262

4.15

%

Short-term investments

1,247

-

0.03

2,348

-

0.04

Securities

18,611

181

3.86

22,177

226

4.04

Total interest-earning assets

483,145

4,864

4.00

527,857

5,488

4.13

Noninterest-earning assets

151,017

130,513

TOTAL ASSETS

$

634,162

$

658,370

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

422,200

$

281

0.26

$

437,689

$

968

0.88

Borrowings

22,391

146

2.55

43,831

210

1.87

Total interest-bearing liabilities

444,591

427

0.38

481,520

1,178

0.97

Noninterest-bearing liabilities

125,459

116,069

Shareholders' equity

64,112

60,781

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

634,162

$

658,370

Interest rate spread

3.62

%

3.16

%

Net interest income/margin

$

4,437

3.65

%

$

4,310

3.24

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Twelve Months Ended

December 31, 2021

December 31, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

474,212

$

19,810

4.16

%

$

516,170

$

21,475

4.14

%

Short-term investments

743

-

0.03

1,422

2

0.12

Securities

19,871

781

3.93

24,490

1,003

4.09

Total interest-earning assets

494,826

20,591

4.15

542,082

22,480

4.13

Noninterest-earning assets

151,993

104,926

TOTAL ASSETS

$

646,819

$

647,008

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

431,255

$

1,913

0.44

$

434,495

$

5,018

1.15

Borrowings

25,282

672

2.62

43,964

882

1.97

Total interest-bearing liabilities

456,537

2,585

0.56

478,459

5,900

1.23

Noninterest-bearing liabilities

127,479

108,595

Shareholders' equity

62,803

59,954

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

646,819

$

647,008

Interest rate spread

3.58

%

2.90

%

Net interest income/margin

$

18,006

3.64

%

$

16,580

3.06

%



Quarter Ended

(Dollars in Thousands, Except Per Share Data)

12/31/2021

9/30/2021

6/30/2021

3/31/2021

12/31/2020

Operating Data

Net income

$

1,102

$

1,511

$

1,402

$

1,204

$

1,284

Net interest income

4,437

4,708

4,340

4,521

4,310

Provision for loan losses

-

-

-

150

375

Non-interest income, ex. Net security gains

1,158

1,564

1,347

1,925

2,504

Non-interest expense

4,187

4,307

3,904

4,700

4,771

Performance Statistics

Net interest margin

3.65

%

3.81

%

3.48

%

3.57

%

3.24

%

Annualized return on average assets

0.69

%

0.92

%

0.86

%

0.75

%

0.78

%

Annualized return on average equity

6.82

%

9.49

%

9.03

%

7.93

%

8.40

%

Annualized net loan charge-offs to avg loans

0.01

%

0.14

%

0.06

%

0.03

%

0.03

%

Net charge-offs

7

164

74

40

38

Efficiency ratio

74.8

%

68.7

%

68.6

%

72.9

%

70.0

%

Per Share Data

Basic earnings per share

$

0.31

$

0.43

$

0.40

$

0.34

$

0.37

Diluted earnings per share

0.31

0.43

0.40

0.34

0.37

Dividend declared per share

0.15

0.15

0.15

0.15

0.15

Book value

18.02

17.86

17.57

17.34

17.23

Common stock price:

High

23.22

14.75

15.05

15.96

13.25

Low

13.50

12.80

13.23

11.48

10.44

Close

22.84

13.34

14.31

13.50

11.50

Weighted average common shares:

Basic

3,526

3,522

3,519

3,515

3,512

Fully diluted

3,553

3,524

3,520

3,515

3,512

End-of-period common shares:

Issued

3,641

3,641

3,641

3,636

3,617

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

632,232

$

643,596

$

648,686

$

659,333

$

644,587

Loans, net

458,626

458,631

465,271

476,383

478,013

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

540,999

544,763

551,245

562,893

547,021

Noninterest-bearing

122,268

118,511

121,534

121,101

109,346

Savings

97,479

95,299

93,351

87,228

82,573

NOW

112,519

114,514

111,343

111,414

100,293

Money Market

34,626

36,577

32,624

35,011

35,920

Time deposits

174,107

179,862

192,393

208,139

218,889

Total interest-bearing deposits

418,731

426,252

429,711

441,792

437,675

Shareholders' equity

63,977

63,396

62,375

61,462

60,761

Asset Quality

Non-performing assets

$

3,675

$

3,645

$

5,023

$

5,602

$

5,304

Non-performing assets to total assets

0.58

%

0.57

%

0.77

%

0.85

%

0.82

%

Allowance for loan losses

5,620

5,627

5,791

5,865

5,755

Allowance for loan losses to total loans

1.21

%

1.21

%

1.23

%

1.22

%

1.19

%

Allowance for loan losses to

non-performing loans

174.37

%

175.95

%

116.12

%

108.63

%

112.67

%

Non-performing loans to total loans

0.70

%

0.70

%

1.07

%

1.13

%

1.07

%

Capitalization

Shareholders' equity to total assets

10.12

%

9.85

%

9.62

%

9.32

%

9.43

%