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Elmira Savings Bank Reports Second Quarter Earnings

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ELMIRA, N.Y., July 22, 2020 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $909,000 and $1,927,000 for the three and six months ended June 30, 2020 compared to $718,000 and $1,645,000 for the same periods in 2019.

  • Diluted earnings per share were $.26 per share and $.55 per share for the three and six months ended June 30, 2020 compared to $.21 per share and $.47 per share for the same periods in 2019.

  • Return on average assets was .57% and .62% for the three and six months ended June 30, 2020 compared to .47% and .56% for the three and six months ended June 30, 2019.

  • Return on average equity was 6.12% and 6.52% for the three and six months ended June 30, 2020 compared to 4.92% and 5.66% for the same periods in 2019.

"We continue to be concerned about the impact the economic shutdown and subsequent staged reopening due to the COVID-19 pandemic is having on local economies. Our region has been fortunate to have not yet experienced the widespread health crisis like other areas of the state and country," said Thomas M Carr, President and CEO. Carr continued, "We are focused on continuing to provide credit and 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 $1,927,000 for the six months ended June 30, 2020, an increase of $282,000 or 17% from the $1,645,000 of net income recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $786,000 and an increase in net interest income of $221,000, offset by an increase in the provision for loan losses of $331,000, an increase in noninterest expense of $216,000, and an increase in tax expense of $178,000.

Net income totaled $909,000 for the three months ended June 30, 2020, an increase of $191,000 or 27% from the $718,000 recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $630,000, an increase in net interest income of $40,000, and a decrease in noninterest expense of $13,000, offset by an increase in the provision for loan losses of $413,000 and an increase in tax expense of $79,000.

The increase in noninterest income for both the three and six months ended June 30, 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.

For both the three and six months ended June 30, 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 six months ended June 30, 2020 were both $.55 per share compared to $.47 per share for both for the same period in 2019. Basic and diluted earnings per share for the three months ended June 30, 2020 were both $.26 per share compared to $.21 per share for both for the same period in 2019.

Net Interest Margin

The net interest margin for the six months ended June 30, 2020 was 3.07% compared to 3.10% for the same period in 2019. The yield on average earning assets was 4.24% for the six months ended June 30, 2020 compared to 4.31% for the same period in 2019. The average cost of interest-bearing liabilities was 1.38% for the six months ended June 30, 2020 compared to 1.42% for the same period in 2019.

The net interest margin for the three months ended June 30, 2020 was 2.98% compared to 3.06% for the same period in 2019. The average yield on earning assets was 4.11% for the three months ended June 30, 2020 compared to 4.36% for the same period in 2019. The average cost of interest-bearing liabilities was 1.32% for the three months ended June 30, 2020 compared to 1.50% for the same period in 2019.

Assets

Total assets increased $69.0 million or 11.4% to $675.9 million at June 30, 2020 compared to $606.8 million at December 31, 2019. Loans, including loans held for sale, increased 1.4% to $527.6 million at June 30, 2020 compared to December 31, 2019. The available-for-sale investment portfolio decreased $4.8 million from December 31, 2019 to June 30, 2020. Total cash and cash equivalents were $79.6 million at June 30, 2020, an increase of $67.5 million from December 31, 2019 when cash totaled $12.0 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.02% at June 30, 2020 and 0.82% at December 31, 2019. Net loan charge-offs to average loans for the six months ended June 30, 2020 was 0.09% for both the six months ended June 30, 2020 and June 30, 2019. The allowance for loan losses was 0.96% of total loans at June 30, 2020 and 0.88% of total loans at December 31, 2019.

Liabilities

Deposits total $551.2 million at June 30, 2020, an increase of $39.0 million or 7.6% from the December 31, 2019 total of $512.2 million. Borrowed funds totaled $56.9 million as of June 30, 2020, an increase of $27.9 million from December 31, 2019 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $885,000 to $59.5 million at June 30, 2020 compared to December 31, 2019. The current level of shareholders’ equity equates to a book value per share of $16.87 at June 30, 2020, compared to $16.67 at December 31, 2019. Dividends paid for common shareholders were $0.15 and $0.38 for the three and six months ended June 30, 2020 and $0.23 and $0.46 for the three and six months ended June 30, 2019.

Elmira Savings Bank, with $675.9 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.

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)

June 30,

December 31,

2020

2019

% Change

ASSETS

Cash and due from banks

$

79,470

$

11,954

564.8

%

Federal funds sold and other short-term investments

89

92

-3.3

%

Total cash and cash equivalents

79,559

12,046

560.5

%

Securities available for sale, at fair value

6,962

11,802

-41.0

%

Securities held to maturity - fair value $7,428 at June 30, 2020, and $7,233 at December 31, 2019

6,783

7,018

-3.3

%

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

9,893

9,944

-0.5

%

Loans held for sale

3,919

1,354

189.4

%

Loans receivable

523,723

518,871

0.9

%

Less: Allowance for loan losses

5,025

4,576

9.8

%

Net loans

518,698

514,295

0.9

%

Premises and equipment, net

15,953

16,210

-1.6

%

Bank-owned life insurance

15,204

14,919

1.9

%

Accrued interest receivable

1,761

1,625

8.4

%

Goodwill

12,320

12,320

0.0

%

Other assets

4,810

5,296

-9.2

%

Total assets

$

675,862

$

606,829

11.4

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

551,225

$

512,215

7.6

%

Borrowings

56,896

29,000

96.2

%

Other liabilities

8,245

7,003

17.7

%

Total liabilities

616,366

548,218

12.4

%

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, 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 outstanding at June 30, 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

54,140

53,993

0.3

%

Retained earnings

4,022

3,432

17.2

%

Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares at June 30, 2020 and December 31, 2019

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

169

32

428.1

%

Total Elmira Savings Bank shareholders' equity

59,446

58,561

1.5

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

59,496

58,611

1.5

%

Total liabilities and shareholders' equity

$

675,862

$

606,829

11.4

%


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)

2020

2019

% Change

2020

2019

% Change

Interest and dividend income:

Interest and fees on loans

$

5,451

$

5,464

-0.2

%

$

11,073

$

10,647

4.0

%

Interest and dividends on securities

Taxable

177

252

-29.8

%

390

525

-25.7

%

Non-taxable

72

109

-33.9

%

154

224

-31.3

%

Total interest and dividend income

5,700

5,825

-2.1

%

11,617

11,396

1.9

%

Interest expense:

Interest on deposits

1,342

1,519

-11.7

%

2,759

2,780

-0.8

%

Interest on borrowings

221

209

5.7

%

440

419

5.0

%

Total interest expense

1,563

1,728

-9.5

%

3,199

3,199

0.0

%

Net interest income

4,137

4,097

1.0

%

8,418

8,197

2.7

%

Provision for loan losses

575

162

254.9

%

625

294

112.6

%

Net interest income after provision for loan losses

3,562

3,935

-9.5

%

7,793

7,903

-1.4

%

Noninterest income:

Service fees

255

345

-26.1

%

586

701

-16.4

%

Gain on sale of loans held for sale

1,192

425

180.5

%

1,629

714

128.2

%

Other service fees

181

212

-14.6

%

394

414

-4.8

%

Earnings on bank-owned life insurance

97

94

3.2

%

195

186

4.8

%

Other

31

50

-38.0

%

93

96

-3.1

%

Total noninterest income

1,756

1,126

56.0

%

2,897

2,111

37.2

%

Noninterest expense:

Salaries and benefits

2,070

2,105

-1.7

%

4,214

4,125

2.2

%

Net occupancy

435

375

16.0

%

829

820

1.1

%

Equipment

385

401

-4.0

%

785

764

2.7

%

Marketing and public relations

146

253

-42.3

%

323

499

-35.3

%

Professional fees

149

133

12.0

%

315

271

16.2

%

Other

1,008

939

7.3

%

1,810

1,581

14.5

%

Total noninterest expense

4,193

4,206

-0.3

%

8,276

8,060

2.7

%

Income before income taxes

1,125

855

31.6

%

2,414

1,954

23.5

%

Income taxes

216

137

57.7

%

487

309

57.6

%

Net income

909

718

26.6

%

1,927

1,645

17.1

%

Less: Net income attributable to noncontrolling interest

-

-

-

-

-

-

Net income attributable to Elmira Savings Bank

909

718

26.6

%

1,927

1,645

17.1

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

909

$

718

26.6

%

$

1,927

$

1,645

17.1

%

Basic earnings per share

$

0.26

$

0.21

23.8

%

$

0.55

$

0.47

17.0

%

Diluted earnings per share

$

0.26

$

0.21

23.8

%

$

0.55

$

0.47

17.0

%

Weighted average shares outstanding - basic

3,507,136

3,493,298

0.4

%

3,505,240

3,492,571

0.4

%

Weighted average shares outstanding - diluted

3,507,136

3,499,335

0.2

%

3,506,864

3,500,198

0.2

%

Dividends per share

$

0.15

$

0.23

-34.8

%

$

0.38

$

0.46

-17.4

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

June 30, 2020

June 30, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

528,659

$

5,451

4.12

%

$

492,985

$

5,464

4.42

%

Short-term investments

1,328

-

0.02

513

3

2.11

Securities

24,909

249

4.01

39,985

358

3.59

Total interest-earning assets

554,896

5,700

4.11

533,483

5,825

4.36

Noninterest-earning assets

92,109

72,842

TOTAL ASSETS

$

647,005

$

606,325

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

431,681

$

1,342

1.25

$

431,816

$

1,519

1.41

Borrowings

43,583

221

2.01

29,000

209

2.85

Total interest-bearing liabilities

475,264

1,563

1.32

460,816

1,728

1.50

Noninterest-bearing liabilities

111,950

86,960

Shareholders' equity

59,790

58,549

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

647,004

$

606,325

Interest rate spread

2.79

%

2.86

%

Net interest income/margin

$

4,137

2.98

%

$

4,097

3.06

%



ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Six Months Ended

June 30, 2020

June 30, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

520,069

$

11,073

4.25

%

$

487,500

$

10,647

4.37

%

Short-term investments

1,037

1

0.27

496

5

2.00

Securities

26,364

543

4.12

40,851

744

3.66

Total interest-earning assets

547,470

11,617

4.24

528,847

11,396

4.31

Noninterest-earning assets

75,922

67,108

TOTAL ASSETS

$

623,392

$

595,955

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

426,337

$

2,759

1.30

$

423,792

$

2,780

1.32

Borrowings

37,669

440

2.31

29,376

419

2.83

Total interest-bearing liabilities

464,006

3,199

1.38

453,168

3,199

1.42

Noninterest-bearing liabilities

99,925

84,198

Shareholders' equity

59,461

58,589

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

623,392

$

595,955

Interest rate spread

2.86

%

2.89

%

Net interest income/margin

$

8,418

3.07

%

$

8,197

3.10

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

6/30/2020

3/31/2020

12/31/2019

9/30/2019

6/30/2019

Operating Data

Net income

$

909

$

1,018

$

940

$

901

$

718

Net interest income

4,137

4,281

4,159

4,072

4,097

Provision for loan losses

575

50

200

250

162

Net security gains

-

-

-

90

-

Non-interest income, ex. Net security gains

1,756

1,141

1,358

1,214

1,126

Non-interest expense

4,193

4,083

4,174

4,043

4,206

Performance Statistics

Net interest margin

2.98

%

3.16

%

3.01

%

2.97

%

3.06

%

Annualized return on average assets

0.57

%

0.68

%

0.61

%

0.58

%

0.47

%

Annualized return on average equity

6.12

%

6.93

%

6.33

%

6.07

%

4.92

%

Annualized net loan charge-offs to avg loans

0.09

%

0.05

%

0.14

%

0.11

%

0.09

%

Net charge-offs

116

60

183

135

105

Efficiency ratio

71.1

%

75.3

%

75.7

%

75.2

%

80.5

%

Per Share Data

Basic earnings per share

$

0.26

$

0.29

$

0.27

$

0.26

$

0.21

Diluted earnings per share

0.26

0.29

0.27

0.26

0.21

Dividend declared per share

0.15

0.23

0.23

0.23

0.23

Book value

16.87

16.77

16.67

16.62

16.60

Common stock price:

High

13.39

17.40

15.99

16.40

17.40

Low

10.49

11.50

13.97

13.97

15.69

Close

11.00

11.50

15.10

14.07

16.05

Weighted average common shares:

Basic

3,507

3,503

3,499

3,496

3,493

Fully diluted

3,507

3,507

3,501

3,499

3,499

End-of-period common shares:

Issued

3,617

3,611

3,606

3,606

3,605

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

675,862

$

598,017

$

606,829

$

615,601

$

610,398

Loans, net

518,698

506,076

514,295

511,750

496,149

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

551,225

501,760

512,215

520,030

516,327

Noninterest-bearing

109,985

83,431

81,934

82,613

81,249

Savings

79,150

72,174

70,358

69,186

71,100

NOW

91,166

83,323

88,126

84,207

85,130

Money Market

28,467

20,306

24,724

21,555

19,925

Time deposits

242,457

242,526

247,073

262,469

258,923

Total interest-bearing deposits

441,240

418,329

430,281

437,417

435,078

Shareholders' equity

59,496

59,044

58,611

58,422

58,357

Asset Quality

Non-performing assets

$

5,578

$

4,686

$

4,723

$

4,923

$

4,996

Non-performing assets to total assets

0.83

%

0.78

%

0.78

%

0.80

%

0.82

%

Allowance for loan losses

5,025

4,566

4,576

4,559

4,444

Allowance for loan losses to total loans

0.96

%

0.89

%

0.88

%

0.88

%

0.89

%

Allowance for loan losses to non-performing loans

95.28

%

105.43

%

108.51

%

96.43

%

93.55

%

Non-performing loans to total loans

1.02

%

0.86

%

0.82

%

0.92

%

0.96

%

Capitalization

Shareholders' equity to total assets

8.80

%

9.87

%

9.66

%

9.49

%

9.56

%