Elmira Savings Bank Reports Third Quarter Earnings

Wednesday, 20. October 2021 21:08

ELMIRA, New York, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

  • Net income was $1,511,000 and $4,117,000 for the three and nine months ended September 30, 2021 compared to $948,000 and $2,875,000 for the same periods in 2020.

  • Diluted earnings per share were $.43 per share and $1.17 per share for the three and nine months ended September 30, 2021 compared to $.27 per share and $.82 per share for the same periods in 2020.  

  • Return on average assets was .92% and .85% for the three and nine months ended September 30, 2021 compared to .55% and .60% for the three and nine months ended September 30, 2020.

  • Return on average equity was 9.49% and 8.83% for the three and nine months ended September 30, 2021 compared to 6.27% and 6.44% for the same periods in 2020.

"We are pleased with the improvement in core earnings and asset quality," said Thomas M Carr, President and CEO.  Carr continued, “We are focused on serving our customers and anticipate a successful transition to Community Bank, N.A. during the first quarter of 2022.”

Net Income

Net income totaled $4,117,000 for the nine months ended September 30, 2021, an increase of $1,242,000 or 43% from the $2,875,000 of net income recorded for the same period in 2020. This increase was the net result of an increase in noninterest income of $121,000, an increase in net interest income of $1,299,000, and a decrease in the provision for loan losses of $925,000, offset by an increase in noninterest expense of $590,000 and an increase in tax expense of $513,000.

Net income totaled $1,511,000 for the three months ended September 30, 2021, an increase of $563,000 or 59% from the $948,000 recorded for the same period in 2020. This increase was the net result of an increase in net interest income of $856,000 and a decrease in the provision for loan losses of $450,000, offset by an increase in noninterest expense of $152,000, a decrease in noninterest income of $364,000, and an increase in tax expense of $227,000.

Basic and diluted earnings per share for the nine months ended September 30, 2021 were both $1.17 per share compared to $.82 per share for both for the same period in 2020. Basic and diluted earnings per share for the three months ended September 30, 2021 were both $.43 per share compared to $.27 per share for both for the same period in 2020.

Net Interest Margin

The net interest margin for the nine months ended September 30, 2021 was 3.62% compared to 2.98% for the same period in 2020. The yield on average earning assets was 4.20% for the nine months ended September 30, 2021 compared to 4.13% for the same period in 2020. The average cost of interest-bearing liabilities was 0.62% for the nine months ended September 30, 2021 compared to 1.32% for the same period in 2020.

The net interest margin for the three months ended September 30, 2021 was 3.81% compared to 2.81% for the same period in 2020. The average yield on earning assets was 4.24% for the three months ended September 30, 2021 compared to 3.91% for the same period in 2020. The average cost of interest-bearing liabilities was 0.46% for the three months ended September 30, 2021 compared to 1.20% for the same period in 2020.

Assets

Total assets decreased $991,000 or 0.2% to $643.6 million at September 30, 2021 compared to $644.6 million at December 31, 2020. Loans, including loans held for sale, decreased 4.4% to $467.6 million at September 30, 2021 compared to December 31, 2020. The available-for-sale investment portfolio decreased $1.5 million from December 31, 2020 to September 30, 2021. Total cash and cash equivalents were $111.6 million at September 30, 2021, an increase of $22.4 million from December 31, 2020 when cash totaled $89.2 million.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.70% at September 30, 2021 and 1.07% at December 31, 2020. Net loan charge-offs to average loans for the nine months ended September 30, 2021 was 0.08% compared to 0.06% for the nine months ended September 30, 2020. The allowance for loan losses was 1.21% of total loans at September 30, 2021 and 1.19% of total loans at December 31, 2020.

Liabilities

Deposits total $544.8 million at September 30, 2021, a decrease of $2.3 million or 0.4% from the December 31, 2020 total of $547.0 million. Borrowed funds totaled $24.0 million as of September 30, 2021, a decrease of $5.0 million from December 31, 2020 when borrowed funds totaled $29.0 million.

Shareholders’ Equity

Shareholders’ equity increased $2,635,000 to $63.4 million at September 30, 2021 compared to December 31, 2020. The current level of shareholders’ equity equates to a book value per share of $17.86 at September 30, 2021, compared to $17.23 at December 31, 2020. Dividends paid for common shareholders were $0.15 and $0.45 for the three and nine months ended September 30, 2021 and $0.15 and $0.53 for the three and nine months ended September 30, 2020.

Elmira Savings Bank, with $643.6 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) September 30, December 31,   
   2021   2020  % Change 
ASSETS       
        
Cash and due from banks $111,114  $88,536  25.5% 
Federal funds sold and other short-term investments 492   651  -24.4% 
Total cash and cash equivalents  111,606   89,187  25.1% 
        
Securities available for sale, at fair value  4,631   6,125  -24.4% 
Securities held to maturity - fair value $6,448       
at September 30, 2021, and $7,211 at December 31, 2020 6,219   6,597  -5.7% 
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost 8,220   9,054  -9.2% 
        
Loans held for sale  3,298   5,408  -39.0% 
        
Loans receivable  464,258   483,768  -4.0% 
Less: Allowance for loan losses  5,627   5,755  -2.2% 
Net loans  458,631   478,013  -4.1% 
        
Premises and equipment, net  15,704   15,876  -1.1% 
Bank-owned life insurance  15,807   15,410  2.6% 
Accrued interest receivable  1,391   1,564  -11.1% 
Goodwill  12,320   12,320  0.0% 
Other assets  5,769   5,033  14.6% 
Total assets $643,596  $644,587  -0.2% 
        
LIABILITIES AND SHAREHOLDERS' EQUITY       
        
Deposits $544,763  $547,021  -0.4% 
Borrowings  24,000   29,000  -17.2% 
Other liabilities  11,437   7,805  46.5% 
Total liabilities  580,200   583,826  -0.6% 
        
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, 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 September 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  54,376   54,255  0.2% 
Retained earnings  7,718   5,197  48.5% 
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares      
at September 30, 2021 and December 31, 2020  (12,202)  (12,202) 0.0% 
Accumulated other comprehensive income  113   144  -21.5% 
Total Elmira Savings Bank shareholders' equity  63,346   60,711  4.3% 
Noncontrolling interest  50   50  0.0% 
Total shareholders' equity  63,396   60,761  4.3% 
Total liabilities and shareholders' equity $643,596  $644,587  -0.2% 
        


ELMIRA SAVINGS BANK 
CONSOLIDATED STATEMENT OF INCOME  
(unaudited) 
              
  Three Months Ended Nine Months 
  September 30, Ended September 30, 
(in thousands, except for per share data)  2021   2020  % Change  2021   2020  % Change 
              
Interest and dividend income:             
Interest and fees on loans $5,054  $5,140  -1.7% $15,127  $16,213  -6.7% 
Interest and dividends on securities             
Taxable  125   163  -23.3%  398   553  -28.0% 
Non-taxable  66   72  -8.3%  202   226  -10.6% 
Total interest and dividend income  5,245   5,375  -2.4%  15,727   16,992  -7.4% 
              
Interest expense:             
Interest on deposits  363   1,291  -71.9%  1,632   4,050  -59.7% 
Interest on borrowings  174   232  -25.0%  526   672  -21.7% 
Total interest expense  537   1,523  -64.7%  2,158   4,722  -54.3% 
Net interest income  4,708   3,852  22.2%  13,569   12,270  10.6% 
Provision for loan losses  -   450  -100.0%  150   1,075  -86.0% 
Net interest income after provision for loan losses  4,708   3,402  38.4%  13,419   11,195  19.9% 
              
Noninterest income:             
Service fees  308   285  8.1%  920   871  5.6% 
Gain on sale of loans held for sale  854   1,238  -31.0%  2,708   2,757  -1.8% 
Other service fees  237   216  9.7%  677   590  14.7% 
Earnings on bank-owned life insurance  107   103  3.9%  307   298  3.0% 
Other  58   86  -32.6%  224   199  12.6% 
Total noninterest income  1,564   1,928  -18.9%  4,836   4,715  2.6% 
              
Noninterest expense:             
Salaries and benefits  2,228   2,236  -0.4%  6,687   6,450  3.7% 
Net occupancy  172   388  -55.7%  1,175   1,217  -3.5% 
Equipment  384   408  -5.9%  1,210   1,193  1.4% 
Marketing and public relations  254   202  25.7%  662   525  26.1% 
Professional fees  490   143  242.7%  794   458  73.4% 
Other  779   778  0.1%  2,383   2,478  -3.8% 
Total noninterest expense  4,307   4,155  3.7%  12,911   12,321  4.8% 
Income before income taxes  1,965   1,175  67.2%  5,344   3,589  48.9% 
Income taxes  454   227  100.0%  1,227   714  71.8% 
Net income  1,511   948  59.4%  4,117   2,875  43.2% 
Less: Net income attributable to noncontrolling interest  -   -  -   -   -  -  
              
Net income attributable to Elmira Savings Bank $1,511  $948  59.4% $4,117  $2,875  43.2% 
              
              
Basic earnings per share $0.43  $0.27  59.3% $1.17  $0.82  42.7% 
              
Diluted earnings per share $0.43  $0.27  59.3% $1.17  $0.82  42.7% 
              
Weighted average shares outstanding - basic  3,522,400   3,509,421  0.4%  3,518,775   3,506,646  0.3% 
              
Weighted average shares outstanding - diluted  3,523,526   3,509,421  0.4%  3,519,663   3,507,728  0.3% 
              
Dividends per share $0.15  $0.15  0.0% $0.45  $0.53  -15.1% 
              


ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
               
(Dollars in Thousands)For the Three Months Ended  
 September 30, 2021  September 30, 2020  
ASSETS: Average Balance   Interest  Average Rate   Average Balance   Interest  Average Rate  
Loans$470,777  $5,054  4.26% $521,294  $5,140  3.92% 
Short-term investments 674   -  0.04   1,257   -  0.05  
Securities 19,434   191  3.91   23,170   235  4.08  
Total interest-earning assets 490,885   5,245  4.24   545,721   5,375  3.91  
               
Noninterest-earning assets 160,254        136,645       
               
TOTAL ASSETS$651,139       $682,366       
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Interest-bearing deposits$430,078  $363  0.33  $447,441  $1,291  1.15  
Borrowings 25,848   174  2.64   56,548   232  1.61  
Total interest-bearing liabilities 455,926   537  0.46   503,989   1,523  1.20  
               
Noninterest-bearing liabilities 132,024        118,276       
Shareholders' equity 63,189        60,101       
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$651,139       $682,366       
Interest rate spread    3.78%     2.71% 
Net interest income/margin  $4,708  3.81%   $3,852  2.81% 
               



ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
               
(Dollars in Thousands)For the Nine Months Ended  
 September 30, 2021  September 30, 2020  
ASSETS: Average Balance   Interest  Average Rate   Average Balance   Interest  Average Rate  
Loans$477,894  $15,127  4.21% $520,481  $16,213  4.14% 
Short-term investments 573   -  0.03   1,111   2  0.18  
Securities 20,296   600  3.95   25,291   777  4.10  
Total interest-earning assets 498,763   15,727  4.20   546,883   16,992  4.13  
               
Noninterest-earning assets 152,323        96,310       
               
TOTAL ASSETS$651,086       $643,193       
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Interest-bearing deposits$434,307  $1,632  0.50  $433,423  $4,050  1.25  
Borrowings 26,256   526  2.64   44,008   672  2.01  
Total interest-bearing liabilities 460,563   2,158  0.62   477,431   4,722  1.32  
               
Noninterest-bearing liabilities 128,161        106,086       
Shareholders' equity 62,362        59,676       
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$651,086       $643,193       
Interest rate spread    3.58%     2.81% 
Net interest income/margin  $13,569  3.62%   $12,270  2.98% 
               


   Quarter Ended
(Dollars in Thousands, Except Per Share Data) 9/30/2021 6/30/20213/31/202112/31/20209/30/2020 
Operating Data           
 Net income$1,511 $1,402 $1,204 $1,284 $948  
 Net interest income 4,708  4,340  4,521  4,310  3,852  
 Provision for loan losses -  -  150  375  450  
 Net security gains -  -  -  -  -  
 Non-interest income, ex. Net security gains 1,564  1,347  1,925  2,504  1,928  
 Non-interest expense 4,307  3,904  4,700  4,771  4,155  
Performance Statistics           
 Net interest margin 3.81% 3.48% 3.57% 3.24% 2.81% 
 Annualized return on average assets 0.92% 0.86% 0.75% 0.78% 0.55% 
 Annualized return on average equity 9.49% 9.03% 7.93% 8.40% 6.27% 
 Annualized net loan charge-offs to avg loans 0.14% 0.06% 0.03% 0.03% 0.04% 
 Net charge-offs 164  74  40  38  57  
 Efficiency ratio 68.7% 68.6% 72.9% 70.0% 71.9% 
Per Share Data           
 Basic earnings per share$0.43 $0.40 $0.34 $0.37 $0.27  
 Diluted earnings per share 0.43  0.40  0.34  0.37  0.27  
 Dividend declared per share 0.15  0.15  0.15  0.15  0.15  
 Book value 17.86  17.57  17.34  17.23  17.01  
 Common stock price:           
  High 14.75  15.05  15.96  13.25  11.18  
  Low 12.80  13.23  11.48  10.44  10.30  
  Close 13.34  14.31  13.50  11.50  11.02  
 Weighted average common shares:           
  Basic 3,522  3,519  3,515  3,512  3,509  
  Fully diluted 3,524  3,520  3,515  3,512  3,509  
 End-of-period common shares:           
  Issued 3,641  3,641  3,636  3,617  3,617  
  Treasury 94  94  94  94  94  
              
              
Financial Condition Data:           
General           
 Total assets$643,596 $648,686 $659,333 $644,587 $674,032  
 Loans, net 458,631  465,271  476,383  478,013  504,946  
 Intangibles 12,320  12,320  12,320  12,320  12,320  
 Total deposits 544,763  551,245  562,893  547,021  551,350  
  Noninterest-bearing 118,511  121,534  121,101  109,346  107,423  
  Savings 95,299  93,351  87,228  82,573  79,492  
  NOW 114,514  111,343  111,414  100,293  98,464  
  Money Market 36,577  32,624  35,011  35,920  34,375  
  Time deposits 179,862  192,393  208,139  218,889  231,596  
  Total interest-bearing deposits 426,252  429,711  441,792  437,675  443,927  
 Shareholders' equity 63,396  62,375  61,462  60,761  59,960  
Asset Quality           
 Non-performing assets$3,645 $5,023 $5,602 $5,304 $5,507  
 Non-performing assets to total assets 0.57% 0.77% 0.85% 0.82% 0.82% 
 Allowance for loan losses 5,627  5,791  5,865  5,755  5,418  
 Allowance for loan losses to total loans 1.21% 1.23% 1.22% 1.19% 1.06% 
 Allowance for loan losses to           
  non-performing loans 175.95% 116.12% 108.63% 112.67% 104.11% 
 Non-performing loans to total loans 0.70% 1.07% 1.13% 1.07% 1.03% 
Capitalization           
 Shareholders' equity to total assets 9.85% 9.62% 9.32% 9.43% 8.90% 

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


Primary Logo

Related Links: 
Author:
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.