GlobeNewswire Inc | Jul 21, 2021 02:51PM EDT

July 21, 2021

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 Banks regulatory reports.



ELMIRA SAVINGS BANKCONSOLIDATED BALANCE SHEET(unaudited) (in thousands, except for share June 30, December 31, and per share data) 2021 2020 % ChangeASSETS Cash and due from banks $ 107,383 $ 88,536 21.3 %Federal funds sold and other 488 651 -25.0 %short-term investmentsTotal cash and cash equivalents 107,871 89,187 20.9 % Securities available for sale, at 5,082 6,125 -17.0 %fair valueSecurities held to maturity - fair value $6,571at June 30, 2021, and $7,211 at 6,339 6,597 -3.9 %December 31, 2020Federal Reserve and Federal Home 8,290 9,054 -8.4 %Loan Bank (FHLB) stock, at cost 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 sharesauthorized;10,000 shares issued and noneoutstanding at June 30, 2021 and 9,700 9,700 0.0 %at December 31, 2020Common stock, $1 par value;authorized 5,000,000 shares; 3,641,487 shares issued and3,547,604 outstandingat June 30, 2021 and 3,616,770shares issued and 3,522,887 3,641 3,617 0.7 %outstanding at December 31, 2020Additional paid-in capital 54,331 54,255 0.1 %Retained earnings 6,740 5,197 29.7 %Treasury stock, at cost - 93,883common shares and 10,000 preferred sharesat June 30, 2021 and December 31, (12,202 ) (12,202 ) 0.0 %2020Accumulated other comprehensive 115 144 -20.1 %incomeTotal Elmira Savings Bank 62,325 60,711 2.7 %shareholders' equityNoncontrolling interest 50 50 0.0 %Total shareholders' equity 62,375 60,761 2.7 %Total liabilities and $ 648,686 $ 644,587 0.6 %shareholders' equity

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

ELMIRA SAVINGS BANKAVERAGE BALANCES AND INTEREST RATES

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

ELMIRA SAVINGS BANKAVERAGE BALANCES AND INTEREST RATES

(Dollars in For the Six Months EndedThousands) June 30, 2021 June 30, 2020 ASSETS: Average Interest Average Average Interest Average Balance Rate Balance RateLoans $ 481,512 $ 10,073 4.19 % $ 520,069 $ 11,073 4.25 %Short-term 523 - 0.02 1,037 1 0.27 investmentsSecurities 20,733 409 3.96 26,364 543 4.12 Totalinterest-earning 502,768 10,482 4.17 547,470 11,617 4.24 assets Noninterest-earning 148,290 75,922 assets TOTAL ASSETS $ 651,058 $ 623,392 LIABILITIES ANDSHAREHOLDERS' EQUITYInterest-bearing $ 436,456 $ 1,269 0.59 $ 426,337 $ 2,759 1.30 depositsBorrowings 26,464 352 2.64 37,669 440 2.31 Totalinterest-bearing 462,920 1,621 0.70 464,006 3,199 1.38 liabilities Noninterest-bearing 126,196 99,925 liabilitiesShareholders' 61,942 59,461 equity TOTAL LIABILITIESAND SHAREHOLDERS' $ 651,058 $ 623,392 EQUITYInterest rate 3.47 % 2.86 %spreadNet interest income $ 8,861 3.53 % $ 8,418 3.07 %/margin

Quarter Ended (Dollars in Thousands, 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020Except Per Share Data)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 - 150 375 450 575 losses 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 0.86 % 0.75 % 0.78 % 0.55 % 0.57 % average assets Annualized return on 9.03 % 7.93 % 8.40 % 6.27 % 6.12 % average equity Annualized net loan charge-offs to avg 0.06 % 0.03 % 0.03 % 0.04 % 0.09 % loans 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 $ 0.40 $ 0.34 $ 0.37 $ 0.27 $ 0.26 share Diluted earnings per 0.40 0.34 0.37 0.27 0.26 share Dividend declared per 0.15 0.15 0.15 0.15 0.15 share 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 429,711 441,792 437,675 443,927 441,240 deposits 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 0.77 % 0.85 % 0.82 % 0.82 % 0.83 % to total assets Allowance for loan 5,791 5,865 5,755 5,418 5,025 losses Allowance for loan 1.23 % 1.22 % 1.19 % 1.06 % 0.96 % losses to total loans Allowance for loan losses to non-performing 116.12 % 108.63 % 112.67 % 104.11 % 95.28 % loans Non-performing loans 1.07 % 1.13 % 1.07 % 1.03 % 1.02 % to total loans Capitalization Shareholders' equity 9.62 % 9.32 % 9.43 % 8.90 % 8.80 % to total assets

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