Elmira Savings Bank Reports 2021 Earnings

Elmira, New York, UNITED STATES


ELMIRA, N.Y., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,102,000 and $5,219,000 for the three and twelve months ended December 31, 2021 compared to $1,284,000 and $4,159,000 for the same periods in 2020.

  • Diluted earnings per share were $.31 per share and $1.48 per share for the three and twelve months ended December 31, 2021 compared to $.37 per share and $1.19 per share for the same periods in 2020.  

  • Return on average assets was .69% and .81% for the three and twelve months ended December 31, 2021 compared to .78% and .64% for the three and twelve months ended December 31, 2020.

  • Return on average equity was 6.82% and 8.31% for the three and twelve months ended December 31, 2021 compared to 8.40% and 6.94% for the same periods in 2020.

"We are pleased to report an increase in earnings year-to-year, highlighted by residential mortgage originations exceeding $145 million." said Thomas M Carr, President and CEO.  Carr continued, “The merger and integration with Community Bank, N.A, overwhelmingly approved by our shareholders in December, is expected to occur in the second quarter of 2022, instead of the first quarter as had been originally announced.”

Net Income

Net income totaled $5,219,000 for the twelve months ended December 31, 2021, an increase of $1,060,000 or 26% from the $4,159,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $1,426,000 and a decrease in the provision for loan losses of $1,300,000, offset by a decrease in noninterest income of $1,225,000, an increase in noninterest expense of $6,000, and an increase in tax expense of $435,000.

Net income totaled $1,102,000 for the three months ended December 31, 2021, a decrease of $182,000 or 14% from the $1,284,000 recorded for the same period in 2020. This decrease was the net result of a decrease in noninterest income of $1,346,000, offset by an increase in net interest income of $127,000, a decrease in noninterest expense of $584,000, a decrease in the provision for loan losses of $375,000, and a decrease in tax expense of $78,000.

The decrease in noninterest income for both the three and twelve months ended December 31, 2021 is primarily due to decreases in the gain on sale of loans, reflecting lower levels of residential mortgages originated for sale to the secondary markets compared to the same periods in 2020.

For both the three and twelve months ended December 31, 2021, the decreases in the provision for loan losses reflect the higher provisions in 2020 that resulted from management’s consideration of the uncertainty of ongoing economic conditions resulting from the COVID-19 pandemic and associated economic slowdown during that time. Management did not determine it necessary to continue a similar level of provisions for loan losses in 2021, as the allowance for loan losses was determined to already be at adequate levels during 2021.

Basic and diluted earnings per share for the twelve months ended December 31, 2021 were both $1.48 per share compared to $1.19 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended December 31, 2021 were both $.31 per share compared to $.37 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the twelve months ended December 31, 2021 was 3.64% compared to 3.06% for the same period in 2020. The yield on average earning assets was 4.15% for the twelve months ended December 31, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.56% for the twelve months ended December 31, 2021 compared to 1.23% for the same period in 2020.

The net interest margin for the three months ended December 31, 2021 was 3.65% compared to 3.24% for the same period in 2020. The average yield on earning assets was 4.00% for the three months ended December 31, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.38% for the three months ended December 31, 2021 compared to 0.97% for the same period in 2020.

Assets

Total assets decreased $12.4 million or 1.9% to $632.2 million at December 31, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 5% to $466.6 million at December 31, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $2.0 million from December 31, 2020 to December 31, 2021. Total cash and cash equivalents were $101.8 million at December 31, 2021, an increase of $12.6 million from December 31, 2020 when cash totaled $89.2 million.  

Nonperforming Loans

The nonperforming loans to total loans ratio was 0.70% at December 31, 2021 and 1.07% at December 31, 2020. Net loan charge-offs to average loans for the twelve months ended December 31, 2021 was 0.06% and was 0.05% for the twelve months ended December 31, 2020. The allowance for loan losses was 1.21% of total loans at December 31, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits totaled $541.0 million at December 31, 2021, a decrease of $6.0 million or 1.1% from the December 31, 2020 total of $547.0 million. The $6.0 million decrease in deposits consists of a $12.9 million increase in noninterest bearing accounts, a $14.9 million increase in savings accounts, and a $12.2 million increase in interest bearing transaction accounts, offset by a $1.3 million decrease in money market accounts and an $18.9 million decrease in time deposits. Borrowed funds totaled $22.0 million as of December 31, 2021 and $29.0 million at December 31, 2020.

Shareholders’ Equity

Shareholders’ equity increased $3,216,000 to $64.0 million at December 31, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $18.02 at December 31, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.60 for the three and twelve months ended December 31, 2021 and $0.15 and $0.68 for the three and twelve months ended December 31, 2020.

Elmira Savings Bank, with $632.2 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.

On October 4, 2021, Elmira Savings Bank, in a joint press release with Community Bank System, Inc. (NYSE:CBU), announced that it had entered into a definitive agreement to be acquired by Community Bank System’s bank subsidiary, Community Bank, N.A. for approximately $82.8 million in cash. Community Bank System, with reported assets of over $15.3 billion, is headquartered in DeWitt, New York and is among the country’s 125 largest banking institutions.   On December 14, 2021, at a Special Shareholders Meeting the shareholders of Elmira Savings Bank approved the merger with more than 98% of the votes cast in favor of the merger.

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)December 31, December 31,  
 2021
 2020
 % Change
ASSETS     
      
Cash and due from banks$99,785  $88,536  12.7%
Federal funds sold and other short-term investments 2,058   651  216.1%
Total cash and cash equivalents 101,843   89,187  14.2%
      
Securities available for sale, at fair value 4,109   6,125  -32.9%
Securities held to maturity - fair value $6,315     
at December 31, 2021 and $7,211 at December 31, 2020 6,080   6,597  -7.8%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 8,087   9,054  -10.7%
      
Loans held for sale 2,374   5,408  -56.1%
      
Loans receivable 464,246   483,768  -4.0%
Less: Allowance for loan losses 5,620   5,755  -2.3%
Net loans 458,626   478,013  -4.1%
      
Premises and equipment, net 15,558   15,876  -2.0%
Bank-owned life insurance 15,914   15,410  3.3%
Accrued interest receivable 1,380   1,564  -11.8%
Goodwill 12,320   12,320  0.0%
Other assets 5,941   5,033  18.0%
Total assets$632,232  $644,587  -1.9%
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
Deposits$540,999  $547,021  -1.1%
Borrowings 22,000   29,000  -24.1%
Other liabilities 5,256   7,805  -32.7%
Total liabilities 568,255   583,826  -2.7%
      
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 December 31, 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 December 31, 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 54,421   54,255  0.3%
Retained earnings 8,288   5,197  59.5%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares     
at December 31, 2021 and December 31, 2020 (12,202)  (12,202) 0.0%
Accumulated other comprehensive income 79   144  -45.1%
Total Elmira Savings Bank shareholders' equity 63,927   60,711  5.3%
Noncontrolling interest 50   50  0.0%
Total shareholders' equity 63,977   60,761  5.3%
Total liabilities and shareholders' equity$632,232  $644,587  -1.9%


ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
            
 Three Months Ended Twelve Months Ended
 December 31, December 31,
(in thousands, except for per share data)2021 2020 % Change 2021 2020 % Change
            
Interest and dividend income:           
Interest and fees on loans$4,683 $5,262 -11.0% $19,810 $21,475 -7.8%
Interest and dividends on securities           
Taxable 117  155 -24.5%  515  708 -27.3%
Non-taxable 64  71 -9.9%  266  297 -10.4%
Total interest and dividend income 4,864  5,488 -11.4%  20,591  22,480 -8.4%
            
Interest expense:           
Interest on deposits 281  968 -71.0%  1,913  5,018 -61.9%
Interest on borrowings 146  210 -30.5%  672  882 -23.8%
Total interest expense 427  1,178 -63.8%  2,585  5,900 -56.2%
Net interest income 4,437  4,310 2.9%  18,006  16,580 8.6%
Provision for loan losses -  375 -100.0%  150  1,450 -89.7%
Net interest income after provision for loan losses 4,437  3,935 12.8%  17,856  15,130 18.0%
            
Noninterest income:           
Service fees 317  292 8.6%  1,237  1,163 6.4%
Gain on sale of loans held for sale 491  1,820 -73.0%  3,199  4,577 -30.1%
Other service fees 215  203 5.9%  892  793 12.5%
Earnings on bank-owned life insurance 108  104 3.8%  415  402 3.2%
Other 27  85 -68.2%  251  284 -11.6%
Total noninterest income 1,158  2,504 -53.8%  5,994  7,219 -17.0%
            
Noninterest expense:           
Salaries and benefits 2,422  2,515 -3.7%  9,109  8,965 1.6%
Net occupancy 387  396 -2.3%  1,562  1,613 -3.2%
Equipment 436  476 -8.4%  1,646  1,669 -1.4%
Other 942  1,384 -31.9%  4,781  4,845 -1.3%
Total noninterest expense 4,187  4,771 -12.2%  17,098  17,092 0.0%
Income before income taxes 1,408  1,668 -15.6%  6,752  5,257 28.4%
Income taxes 301  379 -20.6%  1,528  1,093 39.8%
Net income 1,107  1,289 -14.1%  5,224  4,164 25.5%
Less: Net income attributable to noncontrolling interest 5  5 -   5  5 - 
            
Net income attributable to Elmira Savings Bank 1,102  1,284 -14.2%  5,219  4,159 25.5%
            
Dividend on preferred stock -  - -   -  - - 
Income available to common shareholders$1,102 $1,284 -14.2% $5,219 $4,159 25.5%
            
            
Basic earnings per share$0.31 $0.37 -16.2% $1.48 $1.19 24.4%
            
Diluted earnings per share$0.31 $0.37 -16.2% $1.48 $1.19 24.4%
            
Weighted average shares outstanding - basic 3,525,536  3,511,688 0.4%  3,520,476  3,507,910 0.4%
            
Weighted average shares outstanding - diluted 3,553,083  3,511,688 1.2%  3,528,029  3,508,722 0.6%
            
Dividends per share$0.15 $0.15 0.0% $0.60 $0.68 -11.8%



ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
              
(Dollars in Thousands)For the Three Months Ended 
 December 31, 2021  December 31, 2020 
ASSETS:Average BalanceInterest Average Rate Average BalanceInterest Average Rate 
Loans$463,287 $4,683 4.01% $503,332 $5,262 4.15%
Short-term investments 1,247  - 0.03   2,348  - 0.04 
Securities 18,611  181 3.86   22,177  226 4.04 
Total interest-earning assets 483,145  4,864 4.00   527,857  5,488 4.13 
              
Noninterest-earning assets 151,017       130,513     
              
TOTAL ASSETS$634,162      $658,370     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$422,200 $281 0.26  $437,689 $968 0.88 
Borrowings 22,391  146 2.55   43,831  210 1.87 
Total interest-bearing liabilities 444,591  427 0.38   481,520  1,178 0.97 
              
Noninterest-bearing liabilities 125,459       116,069     
Shareholders' equity 64,112       60,781     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$634,162      $658,370     
Interest rate spread    3.62%     3.16%
Net interest income/margin  $4,437 3.65%   $4,310 3.24%
              


ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES 
              
(Dollars in Thousands)For the Twelve Months Ended 
 December 31, 2021  December 31, 2020 
ASSETS:Average BalanceInterest Average Rate Average BalanceInterest Average Rate 
Loans$474,212 $19,810 4.16% $516,170 $21,475 4.14%
Short-term investments 743  - 0.03   1,422  2 0.12 
Securities 19,871  781 3.93   24,490  1,003 4.09 
Total interest-earning assets 494,826  20,591 4.15   542,082  22,480 4.13 
              
Noninterest-earning assets 151,993       104,926     
              
TOTAL ASSETS$646,819      $647,008     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$431,255 $1,913 0.44  $434,495 $5,018 1.15 
Borrowings 25,282  672 2.62   43,964  882 1.97 
Total interest-bearing liabilities 456,537  2,585 0.56   478,459  5,900 1.23 
              
Noninterest-bearing liabilities 127,479       108,595     
Shareholders' equity 62,803       59,954     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$646,819      $647,008     
Interest rate spread    3.58%     2.90%
Net interest income/margin  $18,006 3.64%   $16,580 3.06%



       Quarter Ended
(Dollars in Thousands, Except Per Share Data) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Operating Data          
                 
 Net income$1,102 $1,511 $1,402 $1,204 $1,284 
 Net interest income 4,437  4,708  4,340  4,521  4,310 
 Provision for loan losses -  -  -  150  375 
 Non-interest income, ex. Net security gains 1,158  1,564  1,347  1,925  2,504 
 Non-interest expense 4,187  4,307  3,904  4,700  4,771 
           
Performance Statistics          
                 
 Net interest margin 3.65% 3.81% 3.48% 3.57% 3.24%
 Annualized return on average assets 0.69% 0.92% 0.86% 0.75% 0.78%
 Annualized return on average equity 6.82% 9.49% 9.03% 7.93% 8.40%
 Annualized net loan charge-offs to avg loans 0.01% 0.14% 0.06% 0.03% 0.03%
 Net charge-offs 7  164  74  40  38 
 Efficiency ratio 74.8% 68.7% 68.6% 72.9% 70.0%
           
Per Share Data          
           
 Basic earnings per share$0.31 $0.43 $0.40 $0.34 $0.37 
 Diluted earnings per share 0.31  0.43  0.40  0.34  0.37 
 Dividend declared per share 0.15  0.15  0.15  0.15  0.15 
 Book value 18.02  17.86  17.57  17.34  17.23 
 Common stock price:          
  High 23.22  14.75  15.05  15.96  13.25 
  Low 13.50  12.80  13.23  11.48  10.44 
  Close 22.84  13.34  14.31  13.50  11.50 
 Weighted average common shares:          
  Basic 3,526  3,522  3,519  3,515  3,512 
  Fully diluted 3,553  3,524  3,520  3,515  3,512 
 End-of-period common shares:          
  Issued 3,641  3,641  3,641  3,636  3,617 
  Treasury 94  94  94  94  94 
             
             
Financial Condition Data:          
General          
 Total assets$632,232 $643,596 $648,686 $659,333 $644,587 
 Loans, net 458,626  458,631  465,271  476,383  478,013 
 Intangibles 12,320  12,320  12,320  12,320  12,320 
 Total deposits 540,999  544,763  551,245  562,893  547,021 
                  
  Noninterest-bearing 122,268  118,511  121,534  121,101  109,346 
                  
  Savings 97,479  95,299  93,351  87,228  82,573 
  NOW 112,519  114,514  111,343  111,414  100,293 
  Money Market 34,626  36,577  32,624  35,011  35,920 
  Time deposits 174,107  179,862  192,393  208,139  218,889 
  Total interest-bearing deposits 418,731  426,252  429,711  441,792  437,675 
                 
 Shareholders' equity 63,977  63,396  62,375  61,462  60,761 
           
Asset Quality          
           
 Non-performing assets$3,675 $3,645 $5,023 $5,602 $5,304 
 Non-performing assets to total assets 0.58% 0.57% 0.77% 0.85% 0.82%
 Allowance for loan losses 5,620  5,627  5,791  5,865  5,755 
 Allowance for loan losses to total loans 1.21% 1.21% 1.23% 1.22% 1.19%
 Allowance for loan losses to          
  non-performing loans 174.37% 175.95% 116.12% 108.63% 112.67%
 Non-performing loans to total loans 0.70% 0.70% 1.07% 1.13% 1.07%
           
Capitalization          
           
 Shareholders' equity to total assets 10.12% 9.85% 9.62% 9.32% 9.43%