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Elmira Savings Bank Reports Third Quarter Earnings

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ELMIRA, N.Y., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $948,000 and $2,875,000 for the three and nine months ended September 30, 2020 compared to $901,000 and $2,546,000 for the same periods in 2019.

  • Diluted earnings per share were $.27 per share and $.82 per share for the three and nine months ended September 30, 2020 compared to $.26 per share and $.73 per share for the same periods in 2019.

  • Return on average assets was .55% and .60% for the three and nine months ended September 30, 2020 compared to .58% and .56% for the three and nine months ended September 30, 2019.

  • Return on average equity was 6.27% and 6.44% for the three and nine months ended September 30, 2020 compared to 6.08% and 5.80% for the same periods in 2019.

"We continue to be concerned about the economic impact the pandemic is having in our region," said Thomas M Carr, President and CEO. Carr continued, "We are focused on 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 $2,875,000 for the nine months ended September 30, 2020, an increase of $329,000 or 13% from the $2,546,000 of net income recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $1,603,000 and an increase in net interest income of $1,000, offset by an increase in the provision for loan losses of $531,000, an increase in noninterest expense of $521,000, and an increase in tax expense of $223,000.

Net income totaled $948,000 for the three months ended September 30, 2020, an increase of $47,000 or 5% from the $901,000 recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of $817,000, offset by a decrease in net interest income of $220,000, an increase in noninterest expense of $305,000, an increase in the provision for loan losses of $200,000, and an increase in tax expense of $45,000.

The increase in noninterest income for both the three and nine months ended September 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. The increase in noninterest expense for both the three and nine months ended September 30, 2020 reflects higher levels of other expense. The higher levels of other expense for both the three and nine months ended September 30, 2020 are in part related to higher levels of residential mortgage originations in 2020 and also includes the impact of a one-time FDIC small bank assessment credit of $143,000 recognized during the third quarter of 2019.

For both the three and nine months ended September 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 nine months ended September 30, 2020 were both $.82 per share compared to $.73 per share for both for the same period in 2019. Basic and diluted earnings per share for the three months ended September 30, 2020 were both $.27 per share compared to $.26 per share for both for the same period in 2019.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2020 was 2.98% compared to 3.05% for the same period in 2019. The yield on average earning assets was 4.13% for the nine months ended September 30, 2020 compared to 4.31% for the same period in 2019. The average cost of interest-bearing liabilities was 1.32% for the nine months ended September 30, 2020 compared to 1.46% for the same period in 2019.

The net interest margin for the three months ended September 30, 2020 was 2.81% compared to 2.97% for the same period in 2019. The average yield on earning assets was 3.91% for the three months ended September 30, 2020 compared to 4.31% for the same period in 2019. The average cost of interest-bearing liabilities was 1.20% for the three months ended September 30, 2020 compared to 1.55% for the same period in 2019.

Assets

Total assets increased $67.2 million or 11.1% to $674.0 million at September 30, 2020 compared to $606.8 million at December 31, 2019. Loans, including loans held for sale, increased 0.1% to $520.9 million at September 30, 2020 compared to December 31, 2019. The available-for-sale investment portfolio decreased $5.3 million from December 31, 2019 to September 30, 2020. Total cash and cash equivalents were $85.4 million at September 30, 2020, an increase of $73.4 million from December 31, 2019 when cash totaled $12.0 million.

Nonperforming Loans

The nonperforming loans to total loans ratio was 1.03% at September 30, 2020 and 0.82% at December 31, 2019. Net loan charge-offs to average loans for the nine months ended September 30, 2020 was 0.06% and was 0.10% for the nine months ended September 30, 2019. The allowance for loan losses was 1.06% of total loans at September 30, 2020 and 0.88% of total loans at December 31, 2019.

Liabilities

Deposits totaled $551.3 million at September 30, 2020, an increase of $39.1 million or 7.6% from the December 31, 2019 total of $512.2 million. Borrowed funds totaled $54.9 million as of September 30, 2020, an increase of $25.9 million from December 31, 2019 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $1,349,000 to $60.0 million at September 30, 2020 compared to December 31, 2019. The current level of shareholders’ equity equates to a book value per share of $17.01 at September 30, 2020, compared to $16.67 at December 31, 2019. Dividends paid for common shareholders were $0.15 and $0.53 for the three and nine months ended September 30, 2020 and $0.23 and $0.69 for the three and nine months ended September 30, 2019.

Elmira Savings Bank, with $674.0 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)

September 30,

December 31,

2020

2019

% Change

ASSETS

Cash and due from banks

$

85,381

$

11,954

614.2

%

Federal funds sold and other short-term investments

88

92

-4.3

%

Total cash and cash equivalents

85,469

12,046

609.5

%

Securities available for sale, at fair value

6,456

11,802

-45.3

%

Securities held to maturity - fair value $7,348

at September 30, 2020 and $7,233 at December 31, 2019

6,716

7,018

-4.3

%

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

9,417

9,944

-5.3

%

Loans held for sale

10,489

1,354

674.7

%

Loans receivable

510,364

518,871

-1.6

%

Less: Allowance for loan losses

5,418

4,576

18.4

%

Net loans

504,946

514,295

-1.8

%

Premises and equipment, net

16,030

16,210

-1.1

%

Bank-owned life insurance

15,307

14,919

2.6

%

Accrued interest receivable

1,675

1,625

3.1

%

Goodwill

12,320

12,320

0.0

%

Other assets

5,207

5,296

-1.7

%

Total assets

$

674,032

$

606,829

11.1

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

$

551,350

$

512,215

7.6

%

Borrowings

54,896

29,000

89.3

%

Other liabilities

7,826

7,003

11.8

%

Total liabilities

614,072

548,218

12.0

%

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 September 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 oustanding

at September 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

54,197

53,993

0.4

%

Retained earnings

4,441

3,432

29.4

%

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

at September 30, 2020 and December 31, 2019

(12,202

)

(12,202

)

0.0

%

Accumulated other comprehensive income

157

32

390.6

%

Total Elmira Savings Bank shareholders' equity

59,910

58,561

2.3

%

Noncontrolling interest

50

50

0.0

%

Total shareholders' equity

59,960

58,611

2.3

%

Total liabilities and shareholders' equity

$

674,032

$

606,829

11.1

%


ELMIRA SAVINGS BANK

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in thousands, except for per share data)

2020

2019

% Change

2020

2019

% Change

Interest and dividend income:

Interest and fees on loans

$

5,140

$

5,568

-7.7

%

$

16,213

$

16,215

-0.0

%

Interest and dividends on securities

Taxable

163

234

-30.3

%

553

759

-27.1

%

Non-taxable

72

107

-32.7

%

226

331

-31.7

%

Total interest and dividend income

5,375

5,909

-9.0

%

16,992

17,305

-1.8

%

Interest expense:

Interest on deposits

1,291

1,627

-20.7

%

4,050

4,407

-8.1

%

Interest on borrowings

232

210

10.5

%

672

629

6.8

%

Total interest expense

1,523

1,837

-17.1

%

4,722

5,036

-6.2

%

Net interest income

3,852

4,072

-5.4

%

12,270

12,269

0.0

%

Provision for loan losses

450

250

80.0

%

1,075

544

97.6

%

Net interest income after provision for loan losses

3,402

3,822

-11.0

%

11,195

11,725

-4.5

%

Noninterest income:

Service fees

285

353

-19.3

%

871

1,054

-17.4

%

Gain on sale of loans held for sale

1,431

452

216.6

%

3,060

1,166

162.4

%

Gain on sale of securities

-

90

-

-

90

-

Other service fees

254

250

1.6

%

648

664

-2.4

%

Earnings on bank-owned life insurance

103

98

5.1

%

298

284

4.9

%

Other

48

61

-21.3

%

141

157

-10.2

%

Total noninterest income

2,121

1,304

62.7

%

5,018

3,415

46.9

%

Noninterest expense:

Salaries and benefits

2,236

2,258

-1.0

%

6,450

6,383

1.0

%

Net occupancy

388

379

2.4

%

1,217

1,199

1.5

%

Equipment

408

381

7.1

%

1,193

1,145

4.2

%

Marketing and public relations

202

289

-30.1

%

525

788

-33.4

%

Professional fees

143

90

58.9

%

458

361

26.9

%

Other

971

646

50.3

%

2,781

2,227

24.9

%

Total noninterest expense

4,348

4,043

7.5

%

12,624

12,103

4.3

%

Income before income taxes

1,175

1,083

8.5

%

3,589

3,037

18.2

%

Income taxes

227

182

24.7

%

714

491

45.4

%

Net income

948

901

5.2

%

2,875

2,546

12.9

%

Less: Net income attributable to noncontrolling interest

-

-

-

-

-

-

Net income attibutable to Elmira Savings Bank

948

901

5.2

%

2,875

2,546

12.9

%

Dividend on preferred stock

-

-

-

-

-

-

Income available to common shareholders

$

948

$

901

5.2

%

$

2,875

$

2,546

12.9

%

Basic earnings per share

$

0.27

$

0.26

3.8

%

$

0.82

$

0.73

12.3

%

Diluted earnings per share

$

0.27

$

0.26

3.8

%

$

0.82

$

0.73

12.3

%

Weighted average shares outstanding - basic

3,509,421

3,496,195

0.4

%

3,506,646

3,493,945

0.4

%

Weighted average shares outstanding - diluted

3,509,421

3,498,545

0.3

%

3,507,728

3,499,813

0.2

%

Dividends per share

$

0.15

$

0.23

-34.8

%

$

0.53

$

0.69

-23.2

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Three Months Ended

September 30, 2020

September 30, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

521,294

$

5,140

3.92

%

$

506,556

$

5,568

4.36

%

Short-term investments

1,257

-

0.05

689

4

2.15

Securities

23,170

235

4.08

36,861

337

3.63

Total interest-earning assets

545,721

5,375

3.91

544,106

5,909

4.31

Noninterest-earning assets

136,645

75,625

TOTAL ASSETS

$

682,366

$

619,731

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

447,441

$

1,291

1.15

$

441,020

$

1,627

1.46

Borrowings

56,548

232

1.61

29,000

210

2.85

Total interest-bearing liabilities

503,989

1,523

1.20

470,020

1,837

1.55

Noninterest-bearing liabilities

118,276

90,876

Shareholders' equity

60,101

58,835

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

682,366

$

619,731

Interest rate spread

2.71

%

2.76

%

Net interest income/margin

$

3,852

2.81

%

$

4,072

2.97

%


ELMIRA SAVINGS BANK

AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)

For the Nine Months Ended

September 30, 2020

September 30, 2019

ASSETS:

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate

Loans

$

520,481

$

16,213

4.14

%

$

493,922

$

16,215

4.37

%

Short-term investments

1,111

2

0.18

562

9

2.06

Securities

25,291

777

4.10

39,506

1,081

3.65

Total interest-earning assets

546,883

16,992

4.13

533,990

17,305

4.31

Noninterest-earning assets

96,310

69,978

TOTAL ASSETS

$

643,193

$

603,968

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing deposits

$

433,423

$

4,050

1.25

$

429,598

$

4,407

1.37

Borrowings

44,008

672

2.01

29,249

629

2.84

Total interest-bearing liabilities

477,431

4,722

1.32

458,847

5,036

1.46

Noninterest-bearing liabilities

106,086

86,449

Shareholders' equity

59,676

58,672

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

643,193

$

603,968

Interest rate spread

2.81

%

2.85

%

Net interest income/margin

$

12,270

2.98

%

$

12,269

3.05

%


Quarter Ended

(Dollars in Thousands, Except Per Share Data)

9/30/2020

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Operating Data

Net income

$

948

$

909

$

1,018

$

940

$

901

Net interest income

3,852

4,137

4,281

4,159

4,072

Provision for loan losses

450

575

50

200

250

Net security gains

-

-

-

-

90

Non-interest income, ex. Net security gains

2,121

1,756

1,141

1,358

1,214

Non-interest expense

4,348

4,193

4,083

4,174

4,043

Performance Statistics

Net interest margin

2.81

%

2.98

%

3.16

%

3.01

%

2.97

%

Annualized return on average assets

0.55

%

0.57

%

0.68

%

0.61

%

0.58

%

Annualized return on average equity

6.27

%

6.12

%

6.93

%

6.33

%

6.07

%

Annualized net loan charge-offs to avg loans

0.04

%

0.09

%

0.05

%

0.14

%

0.11

%

Net charge-offs

57

116

60

183

135

Efficiency ratio

72.8

%

71.1

%

75.3

%

75.7

%

75.2

%

Per Share Data

Basic earnings per share

$

0.27

$

0.26

$

0.29

$

0.27

$

0.26

Diluted earnings per share

0.27

0.26

0.29

0.27

0.26

Dividend declared per share

0.15

0.15

0.23

0.23

0.23

Book value

17.01

16.87

16.77

16.67

16.62

Common stock price:

High

11.18

13.39

17.40

15.99

16.40

Low

10.30

10.49

11.50

13.97

13.97

Close

11.02

11.00

11.50

15.10

14.07

Weighted average common shares:

Basic

3,509

3,507

3,503

3,499

3,496

Fully diluted

3,509

3,507

3,507

3,501

3,499

End-of-period common shares:

Issued

3,617

3,617

3,611

3,606

3,606

Treasury

94

94

94

94

94

Financial Condition Data:

General

Total assets

$

674,032

$

675,862

$

598,017

$

606,829

$

615,601

Loans, net

504,946

518,698

506,076

514,295

511,750

Intangibles

12,320

12,320

12,320

12,320

12,320

Total deposits

551,350

551,225

501,760

512,215

520,030

Noninterest-bearing

107,423

109,985

83,431

81,934

82,613

Savings

79,492

79,150

72,174

70,358

69,186

NOW

98,464

91,166

83,323

88,126

84,207

Money Market

34,375

28,467

20,306

24,724

21,555

Time deposits

231,596

242,457

242,526

247,073

262,469

Total interest-bearing deposits

443,927

441,240

418,329

430,281

437,417

Shareholders' equity

59,960

59,496

59,044

58,611

58,422

Asset Quality

Non-performing assets

$

5,507

$

5,578

$

4,686

$

4,723

$

4,923

Non-performing assets to total assets

0.82

%

0.83

%

0.78

%

0.78

%

0.80

%

Allowance for loan losses

5,418

5,025

4,566

4,576

4,559

Allowance for loan losses to total loans

1.06

%

0.96

%

0.89

%

0.88

%

0.88

%

Allowance for loan losses to

non-performing loans

104.11

%

95.28

%

105.43

%

108.51

%

96.43

%

Non-performing loans to total loans

1.03

%

1.02

%

0.86

%

0.82

%

0.92

%

Capitalization

Shareholders' equity to total assets

8.90

%

8.80

%

9.87

%

9.66

%

9.49

%