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 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 & CEO

Elmira Savings Bank

333 East Water Street

Elmira, New York 14901

(607) 735-8660

tcarr@elmirasavingsbank.com

Elmira Savings Bank Reports Second Quarter Earnings