GlobeNewswire Inc | Oct 20, 2021 03:08PM EDT

October 20, 2021

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 Banks regulatory reports.

ELMIRA SAVINGS BANK CONSOLIDATED BALANCE SHEET (unaudited) (in thousands, except for share September 30, December 31, and per share data) 2021 2020 % ChangeASSETS Cash and due from banks $ 111,114 $ 88,536 25.5 % Federal funds sold and other 492 651 -24.4 % short-term investmentsTotal cash and cash equivalents 111,606 89,187 25.1 % Securities available for sale, 4,631 6,125 -24.4 % at fair valueSecurities held to maturity - fair value $6,448at September 30, 2021, and $7,211 6,219 6,597 -5.7 % at December 31, 2020Federal Reserve and Federal Home 8,220 9,054 -9.2 % Loan Bank (FHLB) stock, at cost 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 sharesauthorized;10,000 shares issued and noneoutstanding at September 30, 2021 9,700 9,700 0.0 % and at December 31, 2020Common stock, $1 par value; authorized 5,000,000shares; 3,641,487 shares issued and 3,547,604 outstandingat September 30, 2021 and3,616,770 shares issued and 3,641 3,617 0.7 % 3,522,887 outstanding at December31, 2020Additional paid-in capital 54,376 54,255 0.2 % Retained earnings 7,718 5,197 48.5 % Treasury stock, at cost - 93,883common shares and 10,000 preferred sharesat September 30, 2021 and (12,202 ) (12,202 ) 0.0 % December 31, 2020Accumulated other comprehensive 113 144 -21.5 % incomeTotal Elmira Savings Bank 63,346 60,711 4.3 % shareholders' equityNoncontrolling interest 50 50 0.0 % Total shareholders' equity 63,396 60,761 4.3 % Total liabilities and $ 643,596 $ 644,587 -0.2 % shareholders' equity

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

ELMIRA SAVINGS BANK AVERAGE BALANCES AND INTEREST RATES (Dollars in Thousands) For the Three Months Ended September 30, 2021 September 30, 2020 ASSETS: Average Interest Average Average Interest Average Balance Rate Balance RateLoans $ 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 490,885 5,245 4.24 545,721 5,375 3.91 assets Noninterest-earning 160,254 136,645 assets TOTAL ASSETS $ 651,139 $ 682,366 LIABILITIES AND SHAREHOLDERS' EQUITYInterest-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 455,926 537 0.46 503,989 1,523 1.20 liabilities Noninterest-bearing 132,024 118,276 liabilitiesShareholders' equity 63,189 60,101 TOTAL LIABILITIES AND $ 651,139 $ 682,366 SHAREHOLDERS' EQUITYInterest rate spread 3.78 % 2.71 % Net interest income/ $ 4,708 3.81 % $ 3,852 2.81 % margin

ELMIRA SAVINGS BANK AVERAGE BALANCES AND INTEREST RATES (Dollars in Thousands) For the Nine Months Ended September 30, 2021 September 30, 2020 ASSETS: Average Interest Average Average Interest Average Balance Rate Balance RateLoans $ 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 498,763 15,727 4.20 546,883 16,992 4.13 assets Noninterest-earning 152,323 96,310 assets TOTAL ASSETS $ 651,086 $ 643,193 LIABILITIES AND SHAREHOLDERS' EQUITYInterest-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 460,563 2,158 0.62 477,431 4,722 1.32 liabilities Noninterest-bearing 128,161 106,086 liabilitiesShareholders' equity 62,362 59,676 TOTAL LIABILITIES AND $ 651,086 $ 643,193 SHAREHOLDERS' EQUITYInterest rate spread 3.58 % 2.81 % Net interest income/ $ 13,569 3.62 % $ 12,270 2.98 % margin

Quarter Ended(Dollars in Thousands, 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Except Per Share Data)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 - - 150 375 450 losses Net security gains - - - - - Non-interest income, 1,564 1,347 1,925 2,504 1,928 ex. Net security gains 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 0.92 % 0.86 % 0.75 % 0.78 % 0.55 % average assets Annualized return on 9.49 % 9.03 % 7.93 % 8.40 % 6.27 % average equity Annualized net loan charge-offs to avg 0.14 % 0.06 % 0.03 % 0.03 % 0.04 % loans 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 $ 0.43 $ 0.40 $ 0.34 $ 0.37 $ 0.27 share Diluted earnings per 0.43 0.40 0.34 0.37 0.27 share Dividend declared per 0.15 0.15 0.15 0.15 0.15 share 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 426,252 429,711 441,792 437,675 443,927 deposits 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 0.57 % 0.77 % 0.85 % 0.82 % 0.82 % to total assets Allowance for loan 5,627 5,791 5,865 5,755 5,418 losses Allowance for loan 1.21 % 1.23 % 1.22 % 1.19 % 1.06 % losses to total loans Allowance for loan losses to non-performing loans 175.95 % 116.12 % 108.63 % 112.67 % 104.11 % Non-performing loans to 0.70 % 1.07 % 1.13 % 1.07 % 1.03 % total loansCapitalization Shareholders' equity to 9.85 % 9.62 % 9.32 % 9.43 % 8.90 % total assets

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