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 & CEOElmira Savings Bank333 East Water StreetElmira, New York 14901(607) 735-8660tcarr@elmirasavingsbank.com 

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