Elmira Savings Bank (NASDAQ:ESBK) -

Highlights

  • Net income was $1,018,000 for the three months ended March 31, 2020 compared to $927,000 for the same period in 2019.
  • Diluted earnings per share were $.29 per share for the three months ended March 31, 2020 compared to $.26 per share for the same period in 2019. 
  • Return on average assets was .68% for the three months ended March 31, 2020 and .64% for the same period in 2019.
  • Return on average equity was 6.93% for the three months ended March 31, 2020 compared to 6.41% for the same period in 2019.

“We are pleased with the improvement in net income during the first quarter.  We are concerned about the current COVID-19 pandemic and the impact it is having on our economy, but feel fortunate that our market areas have not yet experienced the widespread health crisis, like other areas of the state,” said Thomas M. Carr, President and CEO.  Carr continued, “As an express Small Business Administration lender, we have been able to secure Paycheck Protection Program loans for over 200 local small businesses, totaling $23 million of economic aid for our markets.”

Net Income

Net income totaled $1,018,000 for the three months ended March 31, 2020, an increase of $91,000 or 9.8% from the $927,000 recorded for the same period in 2019.  This increase was the net result of an increase in net interest income of $181,000, an increase in noninterest income of $156,000, and a decrease in the provision for loan losses of $82,000, offset by an increase in noninterest expense of $229,000 and an increase in tax expense of $99,000.

Basic and diluted earnings per share for the three months ended March 31, 2020 were both $.29 per share compared to $.27 and $.26 per share for the same period in 2019. 

Net Interest Margin

The net interest margin for the three months ended March 31, 2020 was 3.16% compared to 3.13% for the first quarter of 2019.  The yield on average earning assets was 4.38% for the three months ended March 31, 2020 compared to 4.27% for the same period in 2019.  The average cost of interest-bearing liabilities was 1.45% for the three months ended March 31, 2020 compared to 1.34% for the three months ended March 31, 2019.

Assets

Total assets decreased $8.8 million or 1.5% to $598.0 million at March 31, 2020 compared to $606.8 million at December 31, 2019.  Loans receivable decreased 1.6% to $510.6 million at March 31, 2020 compared to December 31, 2019.  The available-for-sale investment portfolio decreased $3.0 million from December 31, 2019 to March 31, 2020, and cash and cash equivalents increased by $705,000 from December 31, 2019 to March 31, 2020.

Nonperforming Loans

Our nonperforming loans to total loans ratio was .86% at March 31, 2020 and .82% at December 31, 2019.  Net loan charge-offs to average loans for the three months ended March 31, 2020 was .05% and .10% for the three months ended March 31, 2019.  The allowance for loan losses was .89% of total loans at March 31, 2020 and .88% at December 31, 2019.

Liabilities

Deposits totaled $501.8 million at March 31, 2020, a decrease of $10.5 million or 2.0% from the December 31, 2019 total of $512.2 million.  Borrowed funds increased by $2.0 million from December 31, 2019 to $31.0 million at March 31, 2020.

Shareholders’ Equity

Shareholders’ equity increased $433,000 to $59.0 million at March 31, 2020 compared to December 31, 2019. The current level of shareholders’ equity equates to a book value per share of $16.77 at March 31, 2020, compared to $16.67 at December 31, 2019.  Dividends paid to common shareholders were $0.23 for the three months ended both March 31, 2020 and March 31, 2019.    

Elmira Savings Bank, with $598.0 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,    
    2020       2019     % Change
ASSETS          
           
Cash and due from banks $ 12,661     $ 11,954     5.9 %
Federal funds sold and other short-term investments   90       92     -2.2 %
Total cash and cash equivalents   12,751       12,046     5.9 %
           
Securities available for sale, at fair value   8,779       11,802     -25.6 %
Securities held to maturity - fair value $7,643 at March 31, 2020 and $7,233 at December 31, 2019   6,935       7,018     -1.2 %
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost   10,029       9,944     0.9 %
           
Loans held for sale   3,466       1,354     156.0 %
           
Loans receivable   510,642       518,871     -1.6 %
Less: Allowance for loan losses   4,566       4,576     -0.2 %
Net loans   506,076       514,295     -1.6 %
           
Premises and equipment, net   16,052       16,210     -1.0 %
Bank-owned life insurance   15,017       14,919     0.7 %
Accrued interest receivable   1,667       1,625     2.6 %
Goodwill   12,320       12,320     0.0 %
Other assets   4,925       5,296     -7.0 %
Total assets $ 598,017     $ 606,829     -1.5 %
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
Deposits $ 501,760     $ 512,215     -2.0 %
Borrowings   31,000       29,000     6.9 %
Other liabilities   6,213       7,003     -11.3 %
Total liabilities   538,973       548,218     -1.7 %
           
Shareholders' equity:          
Preferred stock, $1 par value; $1,000 liquidation value per issued share; 5,000,000 shares authorized; 10,000 shares issued at March 31, 2020 and at December 31, 2019   9,700       9,700     0.0 %
Common stock, $1 par value; authorized 5,000,000 shares; 3,611,392 shares issued at March 31, 2020 and 3,606,089 shares issued at December 31, 2019   3,611       3,606     0.1 %
Additional paid-in capital   54,088       53,993     0.2 %
Retained earnings   3,641       3,432     6.1 %
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares at March 31, 2020 and December 31, 2019   (12,202 )     (12,202 )   0.0 %
Accumulated other comprehensive income   156       32     387.5 %
Total Elmira Savings Bank shareholders' equity   58,994       58,561     0.7 %
Noncontrolling interest   50       50     0.0 %
Total shareholders' equity   59,044       58,611     0.7 %
Total liabilities and shareholders' equity $ 598,017     $ 606,829     -1.5 %
           
ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
           
  Three Months Ended    
  March 31,    
(in thousands, except for per share data) 2020   2019   % Change
           
Interest and dividend income:          
Interest and fees on loans $ 5,622   $ 5,183   8.5 %
Interest and dividends on securities          
Taxable   213     273   -22.0 %
Non-taxable   82     115   -28.7 %
Total interest and dividend income   5,917     5,571   6.2 %
           
Interest expense:          
Interest on deposits   1,417     1,261   12.4 %
Interest on borrowings   219     210   4.3 %
Total interest expense   1,636     1,471   11.2 %
Net interest income   4,281     4,100   4.4 %
Provision for loan losses   50     132   -62.1 %
Net interest income after provision for loan losses   4,231     3,968   6.6 %
           
Noninterest income:          
Service fees   331     356   -7.0 %
Gain on sale of loans held for sale   437     289   51.2 %
Other service fees   233     202   15.3 %
Earnings on bank-owned life insurance   98     92   6.5 %
Other   42     46   -8.7 %
Total noninterest income   1,141     985   15.8 %
           
Noninterest expense:          
Salaries and benefits   2,144     2,020   6.1 %
Net occupancy   394     445   -11.5 %
Equipment   400     363   10.2 %
Marketing and public relations   177     246   -28.0 %
Professional fees   166     138   20.3 %
Other   802     642   24.9 %
Total noninterest expense   4,083     3,854   5.9 %
Income before income taxes   1,289     1,099   17.3 %
Income taxes   271     172   57.6 %
Net income   1,018     927   9.8 %
Less: Net income attributable to noncontrolling interest   -     -   -  
           
Net income attributable to Elmira Savings Bank   1,018     927   9.8 %
           
Dividend on preferred stock   -     -   -  
Income available to common shareholders $ 1,018   $ 927   9.8 %
           
           
Basic earnings per share $ 0.29   $ 0.27   7.4 %
           
Diluted earnings per share $ 0.29   $ 0.26   11.5 %
           
Weighted average shares outstanding - basic   3,503,344     3,491,821   0.3 %
           
Weighted average shares outstanding - diluted   3,506,591     3,501,037   0.2 %
           
Dividends per share $ 0.23   $ 0.23   0.0 %
           
ELMIRA SAVINGS BANK  
AVERAGE BALANCES AND INTEREST RATES  
                           
(Dollars in Thousands) For the Three Months Ended  
  March 31, 2020     March 31, 2019  
ASSETS: Average Balance Interest   Average Rate   Average Balance Interest   Average Rate  
Loans $ 511,479   $ 5,622   4.39 %   $ 481,954   $ 5,183   4.32 %
Short-term investments   747     1   0.70       479     2   1.88  
Securities   27,819     294   4.23       41,727     386   3.72  
Total interest-earning assets   540,045     5,917   4.38       524,160     5,571   4.27  
                           
Noninterest-earning assets   59,734               61,310          
                           
TOTAL ASSETS $ 599,779             $ 585,470          
                           
LIABILITIES AND SHAREHOLDERS' EQUITY                          
Interest-bearing deposits $ 420,993   $ 1,417   1.35     $ 415,680   $ 1,261   1.23  
Borrowings   31,755     219   2.73       29,755     210   2.82  
Total interest-bearing liabilities   452,748     1,636   1.45       445,435     1,471   1.34  
                           
Noninterest-bearing liabilities   87,899               81,406          
Shareholders' equity   59,132               58,629          
                           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 599,779             $ 585,470          
Interest rate spread         2.93 %           2.93 %
Net interest income/margin     $ 4,281   3.16 %       $ 4,100   3.13 %
                           
  Quarter Ended
(Dollars in Thousands, Except Per Share Data)   3/31/2020   12/31/2019   9/30/2019   6/30/2019   3/31/2019
Operating Data                    
Net income $ 1,018   $ 940   $ 901   $ 718   $ 927  
Net interest income   4,281     4,159     4,072     4,097     4,100  
Provision for loan losses   50     200     250     162     132  
Net security gains   -     -     90     -     -  
Non-interest income, ex. Net security gains   1,141     1,358     1,214     1,126     985  
Non-interest expense   4,083     4,174     4,043     4,206     3,854  
Performance Statistics                    
Net interest margin   3.16 %   3.01 %   2.97 %   3.06 %   3.13 %
Annualized return on average assets   0.68 %   0.61 %   0.58 %   0.47 %   0.64 %
Annualized return on average equity   6.93 %   6.33 %   6.07 %   4.92 %   6.41 %
Annualized net loan charge-offs to avg loans   0.05 %   0.14 %   0.11 %   0.09 %   0.10 %
Net charge-offs   60     183     135     105     117  
Efficiency ratio   75.3 %   75.7 %   75.2 %   80.5 %   75.8 %
Per Share Data                    
Basic earnings per share $ 0.29   $ 0.27   $ 0.26   $ 0.21   $ 0.27  
Diluted earnings per share   0.29     0.27     0.26     0.21     0.26  
Dividend declared per share   0.23     0.23     0.23     0.23     0.23  
Book value   16.77     16.67     16.62     16.60     16.59  
Common stock price:                    
High   17.40     15.99     16.40     17.40     19.09  
Low   11.50     13.97     13.97     15.69     16.32  
Close   11.50     15.10     14.07     16.05     16.75  
Weighted average common shares:                    
Basic   3,503     3,499     3,496     3,493     3,492  
Fully diluted   3,507     3,501     3,499     3,499     3,501  
End-of-period common shares:                    
Issued   3,611     3,606     3,606     3,605     3,601  
Treasury   94     94     94     94     94  
                     
                     
Financial Condition Data:                    
General                    
Total assets $ 598,017   $ 606,829   $ 615,601   $ 610,398   $ 596,613  
Loans, net   506,076     514,295     511,750     496,149     484,780  
Intangibles   12,320     12,320     12,320     12,320     12,320  
Total deposits   501,760     512,215     520,030     516,327     503,089  
Noninterest-bearing   83,431     81,934     82,613     81,249     76,414  
Savings   72,174     70,358     69,186     71,100     71,642  
NOW   83,323     88,126     84,207     85,130     85,808  
Money Market   20,306     24,724     21,555     19,925     19,405  
Time deposits   242,526     247,073     262,469     258,923     249,820  
Total interest-bearing deposits   418,329     430,281     437,417     435,078     426,675  
Shareholders' equity   59,044     58,611     58,422     58,357     58,231  
Asset Quality                    
Non-performing assets $ 4,686   $ 4,723   $ 4,923   $ 4,996   $ 5,081  
Non-performing assets to total assets   0.78 %   0.78 %   0.80 %   0.82 %   0.85 %
Allowance for loan losses   4,566     4,576     4,559     4,444     4,387  
Allowance for loan losses to total loans   0.89 %   0.88 %   0.88 %   0.89 %   0.90 %
Allowance for loan losses to non-performing loans   105.43 %   108.51 %   96.43 %   93.55 %   89.71 %
Non-performing loans to total loans   0.86 %   0.82 %   0.92 %   0.96 %   1.01 %
Capitalization                    
Shareholders' equity to total assets   9.87 %   9.66 %   9.49 %   9.56 %   9.76 %
                     

For further information contact:Thomas M. Carr, President & CEOElmira Savings Bank333 East Water StreetElmira, New York  14901(607) 735-8660tcarr@elmirasavingsbank.com

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