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Elmira Savings Bank Reports First Quarter Earnings

ELMIRA, N.Y., April 27, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,204,000 for the three months ended March 31, 2021 compared to $1,018,000 for the same period in 2020.

  • Diluted earnings per share were $.34 per share for the three months ended March 31, 2021 compared to $.29 per share for the same period in 2020.

  • Return on average assets was .75% for the three months ended March 31, 2021 and .68% for the same period in 2020.

  • Return on average equity was 7.93% for the three months ended March 31, 2021 compared to 6.93% for the same period in 2020.

“We are pleased to report an increase in first quarter net income year-to-year, while at the same time continuing to increase our loan loss reserves in response to the continuing 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 $1,204,000 for the three months ended March 31, 2021, an increase of $186,000 or 18.3% from the $1,018,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $240,000 and an increase in noninterest income of $786,000, offset by an increase in the provision for loan losses of $100,000, an increase in noninterest expense of $619,000, and an increase in tax expense of $121,000.

Basic and diluted earnings per share for the three months ended March 31, 2021 were both $.34 per share compared to $.29 per share for both for the same period in 2020.

The increase in noninterest income for the three months ended March 31, 2021 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 period in 2020. The increase in noninterest expense for the three months ended March 31, 2021 reflects higher levels of salaries and benefits, occupancy expense, and other expense. The higher levels of salaries and benefits and other expense for the three months ended March 31, 2021 are in part related to higher levels of residential mortgage originations and earnings in 2021. The increase in occupancy expense relates primarily to non-recurring costs for property maintenance projects.

For the three months ended March 31, 2021, the increase in the provision for loan losses reflects management’s consideration of the uncertainty of ongoing economic conditions resulting from the COVID-19 pandemic and associated economic slowdown.

Net Interest Margin

The net interest margin for the three months ended March 31, 2021 was 3.57% compared to 3.16% for the first quarter of 2020. The yield on average earning assets was 4.29% for the three months ended March 31, 2021 compared to 4.38% for the same period in 2020. The average cost of interest-bearing liabilities was 0.79% for the three months ended March 31, 2021 compared to 1.45% for the three months ended March 31, 2020.

Assets

Total assets increased $14.7 million or 2.3% to $659.3 million at March 31, 2021 compared to $644.6 million at December 31, 2020. Loans receivable decreased 0.3% to $482.2 million at March 31, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $521,000 from December 31, 2020 to March 31, 2021, and cash and cash equivalents increased by $19.1 million from December 31, 2020 to March 31, 2021. The $19.1 million increase in cash resulted primarily from a $3.4 million decrease in loans, including loans held for sale, and an increase of $15.9 million in deposits.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.13% at March 31, 2021 and 1.07% at December 31, 2020. Net loan charge-offs to average loans for the three months ended March 31, 2021 was .03% and .05% for the three months ended March 31, 2020. The allowance for loan losses was 1.22% of total loans at March 31, 2021 and 1.19% at December 31, 2020.

Liabilities

Deposits totaled $562.9 million at March 31, 2021, an increase of $15.9 million or 2.9% from the December 31, 2020 total of $547.0 million. Borrowed funds decreased by $3.0 million from December 31, 2020 to $26.0 million at March 31, 2021.

Shareholders’ Equity

Shareholders’ equity increased $701,000 to $61.5 million at March 31, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $17.34 at March 31, 2021, compared to $17.23 at December 31, 2020. Dividends paid to common shareholders were $0.15 for the three months ended March 31, 2021 and $0.23 for the same period in 2020.

Elmira Savings Bank, with $659.3 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)

March 31,

December 31,

2021

2020

% Change

ASSETS

Cash and due from banks

$

107,955

$

88,536

21.9

%

Federal funds sold and other short-term investments

359

651

-44.9

%

Total cash and cash equivalents

108,314

89,187

21.4

%

Securities available for sale, at fair value

5,604

6,125

-8.5

%

Securities held to maturity - fair value $6,798

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

6,537

6,597

-0.9

%

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

8,596

9,054

-5.1

%

Loans held for sale

3,574

5,408

-33.9

%

Loans receivable

482,248

483,768

-0.3

%

Less: Allowance for loan losses

5,865

5,755

1.9

%

Net loans

476,383

478,013

-0.3

%

Premises and equipment, net

15,719

15,876

-1.0

%

Bank-owned life insurance

15,512

15,410

0.7

%

Accrued interest receivable

1,487

1,564

-4.9

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,287

5,033

5.0

%

Total assets

$

659,333

$

644,587

2.3

%

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

$

562,893

$

547,021

2.9

%

Borrowings

26,000

29,000

-10.3

%

Other liabilities

8,978

7,805

15.0

%

Total liabilities

597,871

583,826

2.4

%

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, 2021 and at December 31, 2020

9,700

9,700

0.0

%

Common stock, $1 par value; authorized 5,000,000 shares; 3,636,137 shares issued and 3,542,254 outstanding

at March 31, 2021 and 3,616,770 shares issued and 3,522,887 outstanding at December 31, 2020

3,636

3,617

0.5

%

Additional paid-in capital

54,281

54,255

0.0

%

Retained earnings

5,869

5,197

12.9

%

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

at March 31, 2021 and December 31, 2020

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

128

144

-11.1

%

Total Elmira Savings Bank shareholders’ equity

61,412

60,711

1.2

%

Noncontrolling interest

50

50

0.0

%

Total shareholders’ equity

61,462

60,761

1.2

%

Total liabilities and shareholders’ equity

$

659,333

$

644,587

2.3

%



ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

March 31,

(in thousands, except for per share data)

2021

2020

% Change

Interest and dividend income:

Interest and fees on loans

$

5,212

$

5,622

-7.3

%

Interest and dividends on securities

Taxable

143

213

-32.9

%

Non-taxable

69

82

-15.9

%

Total interest and dividend income

5,424

5,917

-8.3

%

Interest expense:

Interest on deposits

725

1,417

-48.8

%

Interest on borrowings

178

219

-18.7

%

Total interest expense

903

1,636

-44.8

%

Net interest income

4,521

4,281

5.6

%

Provision for loan losses

150

50

200.0

%

Net interest income after provision for loan losses

4,371

4,231

3.3

%

Noninterest income:

Service fees

308

331

-6.9

%

Gain on sale of loans held for sale

1,211

435

178.4

%

Other service fees

210

188

11.7

%

Earnings on bank-owned life insurance

101

98

3.1

%

Other

95

87

9.2

%

Total noninterest income

1,925

1,139

69.0

%

Noninterest expense:

Salaries and benefits

2,307

2,144

7.6

%

Net occupancy

626

394

58.9

%

Equipment

442

400

10.5

%

Marketing and public relations

241

177

36.2

%

Professional fees

147

166

-11.4

%

Other

937

800

17.1

%

Total noninterest expense

4,700

4,081

15.2

%

Income before income taxes

1,596

1,289

23.8

%

Income taxes

392

271

44.6

%

Net income

1,204

1,018

18.3

%

Less: Net income attributable to noncontrolling interest

-

-

-

Net income attributable to Elmira Savings Bank

$

1,204

$

1,018

18.3

%

Basic earnings per share

$

0.34

$

0.29

17.2

%

Diluted earnings per share

$

0.34

$

0.29

17.2

%

Weighted average shares outstanding - basic

3,514,650

3,503,344

0.3

%

Weighted average shares outstanding - diluted

3,515,256

3,506,591

0.2

%

Dividends per share

$

0.15

$

0.23

-34.8

%



ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

March 31, 2021

March 31, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

485,646

$

5,212

4.31

%

$

511,479

$

5,622

4.39

%

Short-term investments

617

-

0.02

747

1

0.70

Securities

21,267

212

4.01

27,819

294

4.23

Total interest-earning assets

507,530

5,424

4.29

540,045

5,917

4.38

Noninterest-earning assets

140,728

59,734

TOTAL ASSETS

$

648,258

$

599,779

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits

$

436,731

$

725

0.67

$

420,993

$

1,417

1.35

Borrowings

26,933

178

2.65

31,755

219

2.73

Total interest-bearing liabilities

463,664

903

0.79

452,748

1,636

1.45

Noninterest-bearing liabilities

123,014

87,899

Shareholders’ equity

61,580

59,132

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

648,258

$

599,779

Interest rate spread

3.50

%

2.93

%

Net interest income/margin

$

4,521

3.57

%

$

4,281

3.16

%



Quarter Ended

(Dollars in Thousands, Except Per Share Data)

3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Operating Data

Net income

$

1,204

$

1,284

$

948

$

909

$

1,018

Net interest income

4,521

4,310

3,852

4,137

4,281

Provision for loan losses

150

375

450

575

50

Non-interest income

1,925

2,504

1,928

1,648

1,139

Non-interest expense

4,700

4,771

4,155

4,085

4,081

Performance Statistics

Net interest margin

3.57

%

3.24

%

2.81

%

2.98

%

3.16

%

Annualized return on average assets

0.75

%

0.78

%

0.55

%

0.57

%

0.68

%

Annualized return on average equity

7.93

%

8.40

%

6.27

%

6.12

%

6.93

%

Annualized net loan charge-offs to avg loans

0.03

%

0.03

%

0.04

%

0.09

%

0.05

%

Net charge-offs

40

38

57

116

60

Efficiency ratio

72.9

%

70.0

%

71.9

%

70.6

%

75.3

%

Per Share Data

Basic earnings per share

$

0.34

$

0.37

$

0.27

$

0.26

$

0.29

Diluted earnings per share

0.34

0.37

0.27

0.26

0.29

Dividend declared per share

0.15

0.15

0.15

0.15

0.23

Book value

17.34

17.23

17.01

16.87

16.77

Common stock price:

High

16.00

13.25

11.18

13.39

17.40

Low

11.41

10.44

10.30

10.49

11.50

Close

13.50

11.50

11.02

11.00

11.50

Weighted average common shares:

Basic

3,515

3,512

3,509

3,507

3,503

Fully diluted

3,515

3,512

3,509

3,507

3,507

End-of-period common shares:

Issued

3,636

3,617

3,617

3,617

3,611

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

659,333

$

644,587

$

674,032

$

675,862

$

598,017

Loans, net

476,383

478,013

504,946

518,698

506,076

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

562,893

547,021

551,350

551,225

501,760

Noninterest-bearing

121,101

109,346

107,423

109,985

83,431

Savings

87,228

82,573

79,492

79,150

72,174

NOW

111,414

100,293

98,464

91,166

83,323

Money Market

35,011

35,920

34,375

28,467

20,306

Time deposits

208,139

218,889

231,596

242,457

242,526

Total interest-bearing deposits

441,792

437,675

443,927

441,240

418,329

Shareholders’ equity

61,462

60,761

59,960

59,496

59,044

Asset Quality

Non-performing assets

$

5,602

$

5,304

$

5,507

$

5,578

$

4,686

Non-performing assets to total assets

0.85

%

0.82

%

0.82

%

0.83

%

0.78

%

Allowance for loan losses

5,865

5,755

5,418

5,025

4,566

Allowance for loan losses to total loans

1.22

%

1.19

%

1.06

%

0.96

%

0.89

%

Allowance for loan losses to

non-performing loans

108.63

%

112.67

%

104.11

%

95.28

%

105.43

%

Non-performing loans to total loans

1.13

%

1.07

%

1.03

%

1.02

%

0.86

%

Capitalization

Shareholders’ equity to total assets

9.32

%

9.43

%

8.90

%

8.80

%

9.87

%



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