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Elmira Savings Bank Reports Second Quarter Earnings

·15 min read

ELMIRA, N.Y., July 21, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,402,000 and $2,606,000 for the three and six months ended June 30, 2021 compared to $909,000 and $1,927,000 for the same periods in 2020.

  • Diluted earnings per share were $.40 per share and $.74 per share for the three and six months ended June 30, 2021 compared to $.26 per share and $.55 per share for the same periods in 2020.

  • Return on average assets was .86% and .81% for the three and six months ended June 30, 2021 compared to .57% and .62% for the three and six months ended June 30, 2020.

  • Return on average equity was 9.03% and 8.48% for the three and six months ended June 30, 2021 compared to 6.12% and 6.52% for the same periods in 2020.

"We are pleased with the improvement in earnings and net interest margin through the first half of the year," said Thomas M Carr, President and CEO. Carr continued, “the Bank has successfully navigated through the COVID pandemic up to this point, but we recognize our local economies still face challenges ahead. We are focused on serving our customers and helping our communities return to normal as COVID restrictions continue to be lifted.”

Net Income

Net income totaled $2,606,000 for the six months ended June 30, 2021, an increase of $679,000 or 35% from the $1,927,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in noninterest income of $485,000, an increase in net interest income of $443,000, and a decrease in the provision for loan losses of $475,000, offset by an increase in noninterest expense of $438,000, and an increase in tax expense of $286,000.

Net income totaled $1,402,000 for the three months ended June 30, 2021, an increase of $493,000 or 54% from the $909,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $203,000, a decrease in noninterest expense of $181,000, and a decrease in the provision for loan losses of $575,000, offset by a decrease in noninterest income of $301,000 and an increase in tax expense of $165,000.

Basic and diluted earnings per share for the six months ended June 30, 2021 were both $.74 per share compared to $.55 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended June 30, 2021 were both $.40 per share compared to $.26 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the six months ended June 30, 2021 was 3.53% compared to 3.07% for the same period in 2020. The yield on average earning assets was 4.17% for the six months ended June 30, 2021 compared to 4.24% for the same period in 2020. The average cost of interest-bearing liabilities was .70% for the six months ended June 30, 2021 compared to 1.38% for the same period in 2020.

The net interest margin for the three months ended June 30, 2021 was 3.48% compared to 2.98% for the same period in 2020. The average yield on earning assets was 4.05% for the three months ended June 30, 2021 compared to 4.11% for the same period in 2020. The average cost of interest-bearing liabilities was .62% for the three months ended June 30, 2021 compared to 1.32% for the same period in 2020.

Assets

Total assets increased $4.1 million or 0.6% to $648.7 million at June 30, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 2.5% to $476.9 million at June 30, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $1.0 million from December 31, 2020 to June 30, 2021. Total cash and cash equivalents were $107.9 million at June 30, 2021, an increase of $18.7 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.07% at both June 30, 2021 and December 31, 2020. Net loan charge-offs to average loans for the six months ended June 30, 2021 was 0.05% compared to 0.09% for the six months ended June 30, 2020. The allowance for loan losses was 1.23% of total loans at June 30, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits total $551.2 million at June 30, 2021, an increase of $4.2 million or 0.8% from the December 31, 2020 total of $547.0 million. Borrowed funds totaled $26.0 million as of June 30, 2021, a decrease of $3.0 million from December 31, 2020 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $1,614,000 to $62.4 million at June 30, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $17.57 at June 30, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.30 for the three and six months ended June 30, 2021 and $0.15 and $0.38 for the three and six months ended June 30, 2020.

Elmira Savings Bank, with $648.7 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)

June 30,

December 31,

2021

2020

% Change

ASSETS

Cash and due from banks

$

107,383

$

88,536

21.3

%

Federal funds sold and other short-term investments

488

651

-25.0

%

Total cash and cash equivalents

107,871

89,187

20.9

%

Securities available for sale, at fair value

5,082

6,125

-17.0

%

Securities held to maturity - fair value $6,571

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

6,339

6,597

-3.9

%

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

8,290

9,054

-8.4

%

Loans held for sale

5,860

5,408

8.4

%

Loans receivable

471,062

483,768

-2.6

%

Less: Allowance for loan losses

5,791

5,755

0.6

%

Net loans

465,271

478,013

-2.7

%

Premises and equipment, net

15,595

15,876

-1.8

%

Bank-owned life insurance

15,700

15,410

1.9

%

Accrued interest receivable

1,375

1,564

-12.1

%

Goodwill

12,320

12,320

0.0

%

Other assets

4,983

5,033

-1.0

%

Total assets

$

648,686

$

644,587

0.6

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

551,245

$

547,021

0.8

%

Borrowings

26,000

29,000

-10.3

%

Other liabilities

9,066

7,805

16.2

%

Total liabilities

586,311

583,826

0.4

%

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 June 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 June 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

54,331

54,255

0.1

%

Retained earnings

6,740

5,197

29.7

%

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

at June 30, 2021 and December 31, 2020

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

115

144

-20.1

%

Total Elmira Savings Bank shareholders' equity

62,325

60,711

2.7

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

62,375

60,761

2.7

%

Total liabilities and shareholders' equity

$

648,686

$

644,587

0.6

%


ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

Six Months

June 30,

Ended June 30,

(in thousands, except for per share data)

2021

2020

% Change

2021

2020

% Change

Interest and dividend income:

Interest and fees on loans

$

4,861

$

5,451

-10.8

%

$

10,073

$

11,073

-9.0

%

Interest and dividends on securities

Taxable

130

177

-26.6

%

273

390

-30.0

%

Non-taxable

67

72

-6.9

%

136

154

-11.7

%

Total interest and dividend income

5,058

5,700

-11.3

%

10,482

11,617

-9.8

%

Interest expense:

Interest on deposits

544

1,342

-59.5

%

1,269

2,759

-54.0

%

Interest on borrowings

174

221

-21.3

%

352

440

-20.0

%

Total interest expense

718

1,563

-54.1

%

1,621

3,199

-49.3

%

Net interest income

4,340

4,137

4.9

%

8,861

8,418

5.3

%

Provision for loan losses

-

575

-100.0

%

150

625

-76.0

%

Net interest income after provision for loan losses

4,340

3,562

21.8

%

8,711

7,793

11.8

%

Noninterest income:

Service fees

304

255

19.2

%

612

586

4.4

%

Gain on sale of loans held for sale

643

1,084

-40.7

%

1,854

1,519

22.1

%

Other service fees

230

186

23.7

%

440

374

17.6

%

Earnings on bank-owned life insurance

98

97

1.0

%

200

195

2.6

%

Other

72

26

176.9

%

166

113

46.9

%

Total noninterest income

1,347

1,648

-18.3

%

3,272

2,787

17.4

%

Noninterest expense:

Salaries and benefits

2,152

2,070

4.0

%

4,459

4,214

5.8

%

Net occupancy

377

435

-13.3

%

1,003

829

21.0

%

Equipment

384

385

-0.3

%

826

785

5.2

%

Marketing and public relations

167

146

14.4

%

408

323

26.3

%

Professional fees

157

149

5.4

%

304

315

-3.5

%

Other

667

900

-25.9

%

1,604

1,700

-5.6

%

Total noninterest expense

3,904

4,085

-4.4

%

8,604

8,166

5.4

%

Income before income taxes

1,783

1,125

58.5

%

3,379

2,414

40.0

%

Income taxes

381

216

76.4

%

773

487

58.7

%

Net income

1,402

909

54.2

%

2,606

1,927

35.2

%

Less: Net income attributable to noncontrolling interest

-

-

-

-

-

-

Net income attibutable to Elmira Savings Bank

$

1,402

$

909

54.2

%

$

2,606

$

1,927

35.2

%

Basic earnings per share

$

0.40

$

0.26

53.8

%

$

0.74

$

0.55

34.5

%

Diluted earnings per share

$

0.40

$

0.26

53.8

%

$

0.74

$

0.55

34.5

%

Weighted average shares outstanding - basic

3,519,141

3,507,136

0.3

%

3,516,924

3,505,240

0.3

%

Weighted average shares outstanding - diluted

3,520,074

3,507,136

0.4

%

3,517,694

3,506,864

0.3

%

Dividends per share

$

0.15

$

0.15

0.0

%

$

0.30

$

0.38

-21.1

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

June 30, 2021

June 30, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

477,423

$

4,861

4.06

%

$

528,659

$

5,451

4.12

%

Short-term investments

429

-

0.02

1,328

-

0.02

Securities

20,207

197

3.91

24,909

249

4.01

Total interest-earning assets

498,059

5,058

4.05

554,896

5,700

4.11

Noninterest-earning assets

155,769

92,109

TOTAL ASSETS

$

653,828

$

647,005

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

436,184

$

544

0.50

$

431,681

$

1,342

1.25

Borrowings

26,000

174

2.64

43,583

221

2.01

Total interest-bearing liabilities

462,184

718

0.62

475,264

1,563

1.32

Noninterest-bearing liabilities

129,345

111,951

Shareholders' equity

62,299

59,790

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

653,828

$

647,005

Interest rate spread

3.43

%

2.79

%

Net interest income/margin

$

4,340

3.48

%

$

4,137

2.98

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Six Months Ended

June 30, 2021

June 30, 2020

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

481,512

$

10,073

4.19

%

$

520,069

$

11,073

4.25

%

Short-term investments

523

-

0.02

1,037

1

0.27

Securities

20,733

409

3.96

26,364

543

4.12

Total interest-earning assets

502,768

10,482

4.17

547,470

11,617

4.24

Noninterest-earning assets

148,290

75,922

TOTAL ASSETS

$

651,058

$

623,392

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

436,456

$

1,269

0.59

$

426,337

$

2,759

1.30

Borrowings

26,464

352

2.64

37,669

440

2.31

Total interest-bearing liabilities

462,920

1,621

0.70

464,006

3,199

1.38

Noninterest-bearing liabilities

126,196

99,925

Shareholders' equity

61,942

59,461

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

651,058

$

623,392

Interest rate spread

3.47

%

2.86

%

Net interest income/margin

$

8,861

3.53

%

$

8,418

3.07

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

Operating Data

Net income

$

1,402

$

1,204

$

1,284

$

948

$

909

Net interest income

4,340

4,521

4,310

3,852

4,137

Provision for loan losses

-

150

375

450

575

Non-interest income

1,347

1,925

2,504

1,928

1,648

Non-interest expense

3,904

4,700

4,771

4,155

4,085

Performance Statistics

Net interest margin

3.48

%

3.57

%

3.24

%

2.81

%

2.98

%

Annualized return on average assets

0.86

%

0.75

%

0.78

%

0.55

%

0.57

%

Annualized return on average equity

9.03

%

7.93

%

8.40

%

6.27

%

6.12

%

Annualized net loan charge-offs to avg loans

0.06

%

0.03

%

0.03

%

0.04

%

0.09

%

Net charge-offs

74

40

38

57

116

Efficiency ratio

68.6

%

72.9

%

70.0

%

71.9

%

70.6

%

Per Share Data

Basic earnings per share

$

0.40

$

0.34

$

0.37

$

0.27

$

0.26

Diluted earnings per share

0.40

0.34

0.37

0.27

0.26

Dividend declared per share

0.15

0.15

0.15

0.15

0.15

Book value

17.57

17.34

17.23

17.01

16.87

Common stock price:

High

15.05

15.96

13.25

11.18

13.39

Low

13.23

11.48

10.44

10.30

10.49

Close

14.31

13.50

11.50

11.02

11.00

Weighted average common shares:

Basic

3,519

3,515

3,512

3,509

3,507

Fully diluted

3,520

3,515

3,512

3,509

3,507

End-of-period common shares:

Issued

3,641

3,636

3,617

3,617

3,617

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

648,686

$

659,333

$

644,587

$

674,032

$

675,862

Loans, net

465,271

476,383

478,013

504,946

518,698

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

551,245

562,893

547,021

551,350

551,225

Noninterest-bearing

121,534

121,101

109,346

107,423

109,985

Savings

93,351

87,228

82,573

79,492

79,150

NOW

111,343

111,414

100,293

98,464

91,166

Money Market

32,624

35,011

35,920

34,375

28,467

Time deposits

192,393

208,139

218,889

231,596

242,457

Total interest-bearing deposits

429,711

441,792

437,675

443,927

441,240

Shareholders' equity

62,375

61,462

60,761

59,960

59,496

Asset Quality

Non-performing assets

$

5,023

$

5,602

$

5,304

$

5,507

$

5,578

Non-performing assets to total assets

0.77

%

0.85

%

0.82

%

0.82

%

0.83

%

Allowance for loan losses

5,791

5,865

5,755

5,418

5,025

Allowance for loan losses to total loans

1.23

%

1.22

%

1.19

%

1.06

%

0.96

%

Allowance for loan losses to

non-performing loans

116.12

%

108.63

%

112.67

%

104.11

%

95.28

%

Non-performing loans to total loans

1.07

%

1.13

%

1.07

%

1.03

%

1.02

%

Capitalization

Shareholders' equity to total assets

9.62

%

9.32

%

9.43

%

8.90

%

8.80

%

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