Elmira Savings Bank Reports Second Quarter Earnings

Elmira, New York, UNITED STATES


ELMIRA, N.Y., July 21, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,402,000 and $2,606,000 for the three and six months ended June 30, 2021 compared to $909,000 and $1,927,000 for the same periods in 2020.

  • Diluted earnings per share were $.40 per share and $.74 per share for the three and six months ended June 30, 2021 compared to $.26 per share and $.55 per share for the same periods in 2020.  

  • Return on average assets was .86% and .81% for the three and six months ended June 30, 2021 compared to .57% and .62% for the three and six months ended June 30, 2020.

  • Return on average equity was 9.03% and 8.48% for the three and six months ended June 30, 2021 compared to 6.12% and 6.52% for the same periods in 2020.

"We are pleased with the improvement in earnings and net interest margin through the first half of the year," said Thomas M Carr, President and CEO.  Carr continued, “the Bank has successfully navigated through the COVID pandemic up to this point, but we recognize our local economies still face challenges ahead. We are focused on serving our customers and helping our communities return to normal as COVID restrictions continue to be lifted.”

Net Income

Net income totaled $2,606,000 for the six months ended June 30, 2021, an increase of $679,000 or 35% from the $1,927,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in noninterest income of $485,000, an increase in net interest income of $443,000, and a decrease in the provision for loan losses of $475,000, offset by an increase in noninterest expense of $438,000, and an increase in tax expense of $286,000.

Net income totaled $1,402,000 for the three months ended June 30, 2021, an increase of $493,000 or 54% from the $909,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $203,000, a decrease in noninterest expense of $181,000, and a decrease in the provision for loan losses of $575,000, offset by a decrease in noninterest income of $301,000 and an increase in tax expense of $165,000.

Basic and diluted earnings per share for the six months ended June 30, 2021 were both $.74 per share compared to $.55 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended June 30, 2021 were both $.40 per share compared to $.26 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the six months ended June 30, 2021 was 3.53% compared to 3.07% for the same period in 2020. The yield on average earning assets was 4.17% for the six months ended June 30, 2021 compared to 4.24% for the same period in 2020. The average cost of interest-bearing liabilities was .70% for the six months ended June 30, 2021 compared to 1.38% for the same period in 2020.

The net interest margin for the three months ended June 30, 2021 was 3.48% compared to 2.98% for the same period in 2020. The average yield on earning assets was 4.05% for the three months ended June 30, 2021 compared to 4.11% for the same period in 2020. The average cost of interest-bearing liabilities was .62% for the three months ended June 30, 2021 compared to 1.32% for the same period in 2020.

Assets

Total assets increased $4.1 million or 0.6% to $648.7 million at June 30, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 2.5% to $476.9 million at June 30, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $1.0 million from December 31, 2020 to June 30, 2021. Total cash and cash equivalents were $107.9 million at June 30, 2021, an increase of $18.7 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 1.07% at both June 30, 2021 and December 31, 2020. Net loan charge-offs to average loans for the six months ended June 30, 2021 was 0.05% compared to 0.09% for the six months ended June 30, 2020. The allowance for loan losses was 1.23% of total loans at June 30, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits total $551.2 million at June 30, 2021, an increase of $4.2 million or 0.8% from the December 31, 2020 total of $547.0 million. Borrowed funds totaled $26.0 million as of June 30, 2021, a decrease of $3.0 million from December 31, 2020 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $1,614,000 to $62.4 million at June 30, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $17.57 at June 30, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.30 for the three and six months ended June 30, 2021 and $0.15 and $0.38 for the three and six months ended June 30, 2020.

Elmira Savings Bank, with $648.7 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) June 30,
 December 31,
  
   2021   2020  % Change
ASSETS           
            
Cash and due from banks $107,383  $88,536  21.3%
Federal funds sold and other short-term investments  488   651  -25.0%
Total cash and cash equivalents  107,871   89,187  20.9%
            
Securities available for sale, at fair value  5,082   6,125  -17.0%
Securities held to maturity - fair value $6,571           
at June 30, 2021, and $7,211 at December 31, 2020  6,339   6,597  -3.9%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost  8,290   9,054  -8.4%
            
Loans held for sale  5,860   5,408  8.4%
            
Loans receivable  471,062   483,768  -2.6%
Less: Allowance for loan losses  5,791   5,755  0.6%
Net loans  465,271   478,013  -2.7%
            
Premises and equipment, net  15,595   15,876  -1.8%
Bank-owned life insurance  15,700   15,410  1.9%
Accrued interest receivable  1,375   1,564  -12.1%
Goodwill  12,320   12,320  0.0%
Other assets  4,983   5,033  -1.0%
Total assets $648,686  $644,587  0.6%
            
LIABILITIES AND SHAREHOLDERS' EQUITY           
            
Deposits $551,245  $547,021  0.8%
Borrowings  26,000   29,000  -10.3%
Other liabilities  9,066   7,805  16.2%
Total liabilities  586,311   583,826  0.4%
            
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, 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 June 30, 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  54,331   54,255  0.1%
Retained earnings  6,740   5,197  29.7%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares           
at June 30, 2021 and December 31, 2020  (12,202)  (12,202) 0.0%
Accumulated other comprehensive income  115   144  -20.1%
Total Elmira Savings Bank shareholders' equity  62,325   60,711  2.7%
Noncontrolling interest  50   50  0.0%
Total shareholders' equity  62,375   60,761  2.7%
Total liabilities and shareholders' equity $648,686  $644,587  0.6%
            


ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
             
  Three Months Ended Six Months
  June 30, Ended June 30,
(in thousands, except for per share data) 2021 2020 % Change 2021 2020 % Change
             
Interest and dividend income:            
Interest and fees on loans $4,861 $5,451 -10.8% $10,073 $11,073 -9.0%
Interest and dividends on securities            
Taxable  130  177 -26.6%  273  390 -30.0%
Non-taxable  67  72 -6.9%  136  154 -11.7%
Total interest and dividend income  5,058  5,700 -11.3%  10,482  11,617 -9.8%
             
Interest expense:            
Interest on deposits  544  1,342 -59.5%  1,269  2,759 -54.0%
Interest on borrowings  174  221 -21.3%  352  440 -20.0%
Total interest expense  718  1,563 -54.1%  1,621  3,199 -49.3%
Net interest income  4,340  4,137 4.9%  8,861  8,418 5.3%
Provision for loan losses  -  575 -100.0%  150  625 -76.0%
Net interest income after provision for loan losses  4,340  3,562 21.8%  8,711  7,793 11.8%
             
Noninterest income:            
Service fees  304  255 19.2%  612  586 4.4%
Gain on sale of loans held for sale  643  1,084 -40.7%  1,854  1,519 22.1%
Other service fees  230  186 23.7%  440  374 17.6%
Earnings on bank-owned life insurance  98  97 1.0%  200  195 2.6%
Other  72  26 176.9%  166  113 46.9%
Total noninterest income  1,347  1,648 -18.3%  3,272  2,787 17.4%
             
Noninterest expense:            
Salaries and benefits  2,152  2,070 4.0%  4,459  4,214 5.8%
Net occupancy  377  435 -13.3%  1,003  829 21.0%
Equipment  384  385 -0.3%  826  785 5.2%
Marketing and public relations  167  146 14.4%  408  323 26.3%
Professional fees  157  149 5.4%  304  315 -3.5%
Other  667  900 -25.9%  1,604  1,700 -5.6%
Total noninterest expense  3,904  4,085 -4.4%  8,604  8,166 5.4%
Income before income taxes  1,783  1,125 58.5%  3,379  2,414 40.0%
Income taxes  381  216 76.4%  773  487 58.7%
Net income  1,402  909 54.2%  2,606  1,927 35.2%
Less: Net income attributable to noncontrolling interest  -  - -   -  - - 
             
Net income attibutable to Elmira Savings Bank $1,402 $909 54.2% $2,606 $1,927 35.2%
             
             
Basic earnings per share $0.40 $0.26 53.8% $0.74 $0.55 34.5%
             
Diluted earnings per share $0.40 $0.26 53.8% $0.74 $0.55 34.5%
             
Weighted average shares outstanding - basic  3,519,141  3,507,136 0.3%  3,516,924  3,505,240 0.3%
             
Weighted average shares outstanding - diluted  3,520,074  3,507,136 0.4%  3,517,694  3,506,864 0.3%
             
Dividends per share $0.15 $0.15 0.0% $0.30 $0.38 -21.1%
             


ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES
 
(Dollars in Thousands)For the Three Months Ended 
 June 30, 2021
 June 30, 2020
ASSETS:Average Balance Interest Average Rate Average Balance Interest Average Rate
Loans$477,423 $4,861 4.06% $528,659 $5,451 4.12%
Short-term investments 429  - 0.02   1,328  - 0.02 
Securities 20,207  197 3.91   24,909  249 4.01 
Total interest-earning assets 498,059  5,058 4.05   554,896  5,700 4.11 
              
Noninterest-earning assets 155,769       92,109     
              
TOTAL ASSETS$653,828      $647,005     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$436,184 $544 0.50  $431,681 $1,342 1.25 
Borrowings 26,000  174 2.64   43,583  221 2.01 
Total interest-bearing liabilities 462,184  718 0.62   475,264  1,563 1.32 
              
Noninterest-bearing liabilities 129,345       111,951     
Shareholders' equity 62,299       59,790     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$653,828      $647,005     
Interest rate spread    3.43%     2.79%
Net interest income/margin  $4,340 3.48%   $4,137 2.98%
              


ELMIRA SAVINGS BANK 
AVERAGE BALANCES AND INTEREST RATES 
 
(Dollars in Thousands)For the Six Months Ended 
 June 30, 2021  June 30, 2020 
ASSETS:Average Balance Interest Average Rate Average Balance Interest Average Rate 
Loans$481,512 $10,073 4.19% $520,069 $11,073 4.25%
Short-term investments 523  - 0.02   1,037  1 0.27 
Securities 20,733  409 3.96   26,364  543 4.12 
Total interest-earning assets 502,768  10,482 4.17   547,470  11,617 4.24 
              
Noninterest-earning assets 148,290       75,922     
              
TOTAL ASSETS$651,058      $623,392     
              
LIABILITIES AND SHAREHOLDERS' EQUITY             
Interest-bearing deposits$436,456 $1,269 0.59  $426,337 $2,759 1.30 
Borrowings 26,464  352 2.64   37,669  440 2.31 
Total interest-bearing liabilities 462,920  1,621 0.70   464,006  3,199 1.38 
              
Noninterest-bearing liabilities 126,196       99,925     
Shareholders' equity 61,942       59,461     
              
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$651,058      $623,392     
Interest rate spread    3.47%     2.86%
Net interest income/margin  $8,861 3.53%   $8,418 3.07%
              


     Quarter Ended
      
(Dollars in Thousands, Except Per Share Data) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020
Operating Data          
                 
 Net income$1,402 $1,204 $1,284 $948 $909 
 Net interest income 4,340  4,521  4,310  3,852  4,137 
 Provision for loan losses -  150  375  450  575 
 Non-interest income 1,347  1,925  2,504  1,928  1,648 
 Non-interest expense 3,904  4,700  4,771  4,155  4,085 
           
Performance Statistics          
           
 Net interest margin 3.48% 3.57% 3.24% 2.81% 2.98%
 Annualized return on average assets 0.86% 0.75% 0.78% 0.55% 0.57%
 Annualized return on average equity 9.03% 7.93% 8.40% 6.27% 6.12%
 Annualized net loan charge-offs to avg loans 0.06% 0.03% 0.03% 0.04% 0.09%
 Net charge-offs 74  40  38  57  116 
 Efficiency ratio 68.6% 72.9% 70.0% 71.9% 70.6%
           
Per Share Data          
           
 Basic earnings per share$0.40 $0.34 $0.37 $0.27 $0.26 
 Diluted earnings per share 0.40  0.34  0.37  0.27  0.26 
 Dividend declared per share 0.15  0.15  0.15  0.15  0.15 
 Book value 17.57  17.34  17.23  17.01  16.87 
 Common stock price:          
  High 15.05  15.96  13.25  11.18  13.39 
  Low 13.23  11.48  10.44  10.30  10.49 
  Close 14.31  13.50  11.50  11.02  11.00 
 Weighted average common shares:          
  Basic 3,519  3,515  3,512  3,509  3,507 
  Fully diluted 3,520  3,515  3,512  3,509  3,507 
 End-of-period common shares:          
  Issued 3,641  3,636  3,617  3,617  3,617 
  Treasury 94  94  94  94  94 
             
             
Financial Condition Data:          
General          
 Total assets$648,686 $659,333 $644,587 $674,032 $675,862 
 Loans, net 465,271  476,383  478,013  504,946  518,698 
 Intangibles 12,320  12,320  12,320  12,320  12,320 
 Total deposits 551,245  562,893  547,021  551,350  551,225 
                  
  Noninterest-bearing 121,534  121,101  109,346  107,423  109,985 
                  
  Savings 93,351  87,228  82,573  79,492  79,150 
  NOW 111,343  111,414  100,293  98,464  91,166 
  Money Market 32,624  35,011  35,920  34,375  28,467 
  Time deposits 192,393  208,139  218,889  231,596  242,457 
  Total interest-bearing deposits 429,711  441,792  437,675  443,927  441,240 
                 
 Shareholders' equity 62,375  61,462  60,761  59,960  59,496 
           
Asset Quality          
           
 Non-performing assets$5,023 $5,602 $5,304 $5,507 $5,578 
 Non-performing assets to total assets 0.77% 0.85% 0.82% 0.82% 0.83%
 Allowance for loan losses 5,791  5,865  5,755  5,418  5,025 
 Allowance for loan losses to total loans 1.23% 1.22% 1.19% 1.06% 0.96%
 Allowance for loan losses to          
  non-performing loans 116.12% 108.63% 112.67% 104.11% 95.28%
 Non-performing loans to total loans 1.07% 1.13% 1.07% 1.03% 1.02%
           
Capitalization          
           
 Shareholders' equity to total assets 9.62% 9.32% 9.43% 8.90% 8.80%
             

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