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 | % | |||||