Elmira Savings Bank Reports First Quarter Earnings

Elmira, New York, UNITED STATES


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 BalanceInterest Average Rate  Average BalanceInterest 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