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ELMIRA, New York, Oct. 16, 2019 (GLOBE NEWSWIRE) — Elmira Savings Bank (NASDAQ:ESBK)

Highlights

• Net income was $901,000 and $2,546,000 for the three and nine months ended September 30, 2019 compared to $1,010,000 and $3,304,000 for the same periods in 2018.

• Diluted earnings per share were $.26 per share and $.73 per share for the three and nine months ended September 30, 2019 compared to $.29 per share and $.95 per share for the same periods in 2018.

• Return on average assets was .58% and .56% for the three and nine months ended September 30, 2019 compared to .71% and .79% for the three and nine months ended September 30, 2018.

• Return on average equity was 6.08% and 5.80% for the three and nine months ended September 30, 2019 compared to 6.94% and 7.69% for the same periods in 2018.

“We are pleased with our loan and deposit growth in 2019 and continue to focus on improving profitability,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $2,546,000 for the nine months ended September 30, 2019, a decrease of $758,000 or 23% from the $3,304,000 of net income recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $652,000, an increase in the provision for loan losses of $327,000, and a decrease in net interest income of $76,000, offset by an increase in noninterest income of $21,000 and a decrease in tax expense of $276,000.

Net income totaled $901,000 for the three months ended September 30, 2019, a decrease of $109,000 or 11% from the $1,010,000 recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $152,000, an increase in the provision for loan losses of $100,000, and a decrease in net interest income of $18,000, offset by an increase in noninterest income of $150,000 and a decrease in tax expense of $11,000.

Basic and diluted earnings per share for the nine months ended September 30, 2019 were both $.73 per share compared to $.95 per share for both for the same period in 2018.  Basic and diluted earnings per share for the three months ended September 30, 2019 were both $.26 per share compared to $.29 per share for both for the same period in 2018. 

Net Interest Margin

The net interest margin for the nine months ended September 30, 2019 was 3.05% compared to 3.32% for the same period in 2018.  The yield on average earning assets was 4.31% for the nine months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.46% for the nine months ended September 30, 2019 compared to 1.02% for the same period in 2018.

The net interest margin for the three months ended September 30, 2019 was 2.97% compared to 3.26% for the same period in 2018.  The average yield on earning assets was 4.31% for the three months ended September 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.55% for the three months ended September 30, 2019 compared to 1.09% for the same period in 2018.

Assets

Total assets increased $25.6 million or 4.3% to $615.6 million at September 30, 2019 compared to $590.0 million at December 31, 2018.  Loans, including loans held for sale, increased 7.4% to $519.6 million at September 30, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $10.7 million from December 31, 2018 to September 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.92% at September 30, 2019 and 0.94% at December 31, 2018.  Net loan charge-offs to average loans for the nine months ended September 30, 2019 was 0.10% and was 0.07% for the nine months ended September 30, 2018.  The allowance for loan losses was 0.88% of total loans at September 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $520.0 million at September 30, 2019, an increase of $28.5 million or 5.8%.  The $28.5 million increase consists of a $37.9 million increase in time deposits, a $923,000 increase in noninterest-bearing accounts, and a $1.5 million increase in money market accounts, offset by a $6.3 million decrease in savings accounts and a $5.5 million decrease in interest bearing transaction accounts.  Borrowed funds totaled $29.0 million as of September 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $473,000 to $58.4 million at September 30, 2019 compared to December 31, 2018.  The current level of shareholders’ equity equates to a book value per share of $16.62 at September 30, 2019, compared to $16.52 at December 31, 2018.  Dividends paid for common shareholders were $0.23 and $0.69 for the three and nine months ended September 30, 2019 and were $0.23 and $0.68 for the three and nine months ended September 30, 2018.  

Elmira Savings Bank, with $615.6 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a state-chartered bank with six 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.

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
CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands, except for share and per share data)				September 30,		December 31,
				2019		2018		% Change
ASSETS
Cash and due from banks				$ 18,608		$ 19,429		-4.2%
Federal funds sold and other short-term investments				92		94		-2.1%
Total cash and cash equivalents				18,700		19,523		-4.2%
Securities available for sale, at fair value				14,302		25,051		-42.9%
Securities held to maturity – fair value $7,375
at September 30, 2019, and $7,638 at December 31, 2018				7,160		7,518		-4.8%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost				10,061		9,462		6.3%
Loans held for sale				3,339		1,392		139.9%
Loans receivable				516,309		482,272		7.1%
Less: Allowance for loan losses				4,559		4,372		4.3%
Net loans				511,750		477,900		7.1%
Premises and equipment, net				18,517		16,846		9.9%
Bank-owned life insurance				14,819		14,444		2.6%
Accrued interest receivable				1,631		1,566		4.2%
Goodwill				12,320		12,320		0.0%
Other assets				3,002		4,018		-25.3%
Total assets				$ 615,601		$ 590,040		4.3%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits				$ 520,030		$ 491,517		5.8%
Borrowings				29,000		31,000		-6.5%
Other liabilities				8,149		9,574		-14.9%
Total liabilities				557,179		532,091		4.7%
Shareholders’ equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares
authorized; 10,000 shares issued at September 30, 2019 and at December 31, 2018				9,700		9,700		0.0%
Common stock, $1 par value; 5,000,000 shares authorized; 3,606,089 shares
issued at September 30, 2019 and 3,597,605 shares issued at December 31, 2018				3,606		3,598		0.2%
Additional paid-in capital				53,944		53,784		0.3%
Retained earnings				3,299		3,176		3.9%
Treasury stock, at cost – 93,883 common shares and 10,000 preferred shares
at September 30, 2019 and December 31, 2018				(12,202)		(12,202)		0.0%
Accumulated other comprehensive income (loss)				25		(158)		-115.8%
Total Elmira Savings Bank shareholders’ equity				58,372		57,898		0.8%
Noncontrolling interest				50		51		-2.0%
Total shareholders’ equity				58,422		57,949		0.8%
Total liabilities and shareholders’ equity				$ 615,601		$ 590,040		4.3%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
		Three Months Ended									Nine Months Ended
		September 30,									September 30,
(in thousands, except for per share data)		2019			2018			% Change			2019			2018			% Change
Interest and dividend income:
Interest and fees on loans		$	5,568		$	4,896		13.7	%		$	16,215		$	14,478		12.0	%
Interest and dividends on securities
Taxable			234			246		-4.9	%			759			742		2.3	%
Non-taxable			107			118		-9.3	%			331			356		-7.0	%
Total interest and dividend income			5,909			5,260		12.3	%			17,305			15,576		11.1	%
Interest expense:
Interest on deposits			1,627			932		74.6	%			4,407			2,509		75.6	%
Interest on borrowings			210			238		-11.8	%			629			722		-12.9	%
Total interest expense			1,837			1,170		57.0	%			5,036			3,231		55.9	%
Net interest income			4,072			4,090		-0.4	%			12,269			12,345		-0.6	%
Provision for loan losses			250			150		66.7	%			544			217		150.7	%
Net interest income after provision for loan losses			3,822			3,940		-3.0	%			11,725			12,128		-3.3	%
Noninterest income:
Service fees			353			344		2.6	%			1,054			1,085		-2.9	%
Gain on sale of loans held for sale			452			392		15.3	%			1,166			1,178		-1.0	%
Gain on sale of securities			90			–		–				90			–		–
Other service fees			250			214		16.8	%			664			615		8.0	%
Earnings on bank-owned life insurance			98			96		2.1	%			284			289		-1.7	%
Other			61			108		-43.5	%			157			227		-30.8	%
Total noninterest income			1,304			1,154		13.0	%			3,415			3,394		0.6	%
Noninterest expense:
Salaries and benefits			2,258			1,975		14.3	%			6,383			5,920		7.8	%
Net occupancy			379			398		-4.8	%			1,199			1,196		0.3	%
Equipment			381			350		8.9	%			1,145			1,032		10.9	%
Marketing and public relations			289			195		48.2	%			788			646		22.0	%
Professional fees			90			130		-30.8	%			361			400		-9.8	%
Other			646			843		-23.4	%			2,227			2,257		-1.3	%
Total noninterest expense			4,043			3,891		3.9	%			12,103			11,451		5.7	%
Income before income taxes			1,083			1,203		-10.0	%			3,037			4,071		-25.4	%
Income taxes			182			193		-5.7	%			491			767		-36.0	%
Net income			901			1,010		-10.8	%			2,546			3,304		-22.9	%
Less: Net income attributable to noncontrolling interest			–			–		–				–			–		–
Net income attibutable to Elmira Savings Bank			901			1,010		-10.8	%			2,546			3,304		-22.9	%
Dividend on preferred stock			–			–		–				–			–		–
Income available to common shareholders		$	901		$	1,010		-10.8	%		$	2,546		$	3,304		-22.9	%
Basic earnings per share		$	0.26		$	0.29		-10.3	%		$	0.73		$	0.95		-23.2	%
Diluted earnings per share		$	0.26		$	0.29		-10.3	%		$	0.73		$	0.95		-23.2	%
Weighted average shares outstanding – basic			3,496,195			3,480,924		0.4	%			3,493,945			3,477,690		0.5	%
Weighted average shares outstanding – diluted			3,498,545			3,496,810		0.0	%			3,499,813			3,492,445		0.2	%
Dividends per share		$	0.23		$	0.23		0.0	%		$	0.69		$	0.68		1.5	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Three Months Ended
	September 30, 2019									September 30, 2018
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	506,556		$	5,568		4.36	%		$	458,787		$	4,896		4.24	%
Short-term investments		689			4		2.15				479			2		1.61
Securities		36,861			337		3.63				39,448			362		3.65
Total interest-earning assets		544,106			5,909		4.31				498,714			5,260		4.19
Noninterest-earning assets		75,625									67,479
TOTAL ASSETS	$	619,731								$	566,193
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits	$	441,020		$	1,627		1.46			$	392,762		$	932		0.94
Borrowings		29,000			210		2.85				33,000			238		2.82
Total interest-bearing liabilities		470,020			1,837		1.55				425,762			1,170		1.09
Noninterest-bearing liabilities		90,876									82,665
Shareholders’ equity		58,835									57,766
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	619,731								$	566,193
Interest rate spread							2.76	%								3.10	%
Net interest income/margin				$	4,072		2.97	%					$	4,090		3.26	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Nine Months Ended
	September 30, 2019									September 30, 2018
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	493,922		$	16,215		4.37	%		$	454,076		$	14,478		4.24	%
Short-term investments		562			9		2.06				464			5		1.45
Securities		39,506			1,081		3.65				40,409			1,093		3.61
Total interest-earning assets		533,990			17,305		4.31				494,949			15,576		4.19
Noninterest-earning assets		69,978									64,618
TOTAL ASSETS	$	603,968								$	559,567
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits	$	429,598		$	4,407		1.37			$	387,127		$	2,509		0.87
Borrowings		29,249			629		2.84				34,298			722		2.77
Total interest-bearing liabilities		458,847			5,036		1.46				421,425			3,231		1.02
Noninterest-bearing liabilities		86,449									80,683
Shareholders’ equity		58,672									57,459
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	603,968								$	559,567
Interest rate spread							2.85	%								3.17	%
Net interest income/margin				$	12,269		3.05	%					$	12,345		3.32	%

						Quarter Ended
(Dollars in Thousands, Except Per Share Data)				9/30/19			6/30/19			3/31/19			12/31/18			9/30/18
Operating Data
	Net income		$	901		$	718		$	927		$	935		$	1,010
	Net interest income			4,072			4,097			4,100			4,225			4,090
	Provision for loan losses			250			162			132			150			150
	Net security gains			90			–			–			–			–
	Non-interest income, ex. Net security gains			1,214			1,126			985			1,124			1,154
	Non-interest expense			4,043			4,206			3,854			4,038			3,891
Performance Statistics
	Net interest margin			2.97	%		3.06	%		3.13	%		3.26	%		3.26	%
	Annualized return on average assets			0.58	%		0.47	%		0.64	%		0.65	%		0.71	%
	Annualized return on average equity			6.07	%		4.92	%		6.41	%		6.39	%		6.94	%
	Annualized net loan charge-offs to avg loans			0.11	%		0.09	%		0.10	%		0.17	%		0.08	%
	Net charge-offs			135			105			117			199			91
	Efficiency ratio			75.2	%		80.5	%		75.8	%		75.5	%		74.2	%
Per Share Data
	Basic earnings per share		$	0.26		$	0.21		$	0.27		$	0.27		$	0.29
	Diluted earnings per share			0.26			0.21			0.26			0.27			0.29
	Dividend declared per share			0.23			0.23			0.23			0.23			0.23
	Book value			16.62			16.60			16.59			16.52			16.42
	Common stock price:
		High		16.40			17.40			19.09			20.47			21.00
		Low		13.97			15.69			16.32			15.77			20.10
		Close		14.07			16.05			16.75			17.45			20.40
	Weighted average common shares:
		Basic		3,496			3,493			3,492			3,487			3,481
		Fully diluted		3,499			3,499			3,501			3,499			3,497
	End-of-period common shares:
		Issued		3,606			3,605			3,601			3,598			3,593
		Treasury		94			94			94			94			94
Financial Condition Data:
General
	Total assets		$	615,601		$	610,398		$	596,613		$	590,040		$	570,785
	Loans, net			511,750			496,149			484,780			477,900			462,713
	Intangibles			12,320			12,320			12,320			12,320			12,320
	Total deposits			520,030			516,327			503,089			491,517			474,449
		Noninterest-bearing		82,613			81,249			76,414			81,690			78,324
		Savings		69,186			71,100			71,642			75,483			71,748
		NOW		84,207			85,130			85,808			89,666			89,835
		Money Market		21,555			19,925			19,405			20,087			18,910
		Time deposits		262,469			258,923			249,820			224,591			215,632
		Total interest-bearing deposits		437,417			435,078			426,675			409,827			396,125
	Shareholders’ equity			58,422			58,357			58,231			57,949			57,512
Asset Quality
	Non-performing assets		$	4,923		$	4,996		$	5,081		$	4,649		$	4,520
	Non-performing assets to total assets			0.80	%		0.82	%		0.85	%		0.79	%		0.79	%
	Allowance for loan losses			4,559			4,444			4,387			4,372			4,421
	Allowance for loan losses to total loans			0.88	%		0.89	%		0.90	%		0.91	%		0.95	%
	Allowance for loan losses to
		non-performing loans		96.43	%		93.55	%		89.71	%		97.16	%		100.00	%
	Non-performing loans to total loans			0.92	%		0.96	%		1.01	%		0.94	%		0.96	%
Capitalization
	Shareholders’ equity to total assets			9.49	%		9.56	%		9.76	%		9.82	%		10.08	%