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 Bank's regulatory reports.

ELMIRA SAVINGS BANK
CONSOLIDATED BALANCE SHEET
(unaudited)

(in thousands, except for share and per share data)	September 30,			December 31,
		2021			2020		% Change
ASSETS

Cash and due from banks	$	111,114		$	88,536		25.5	%
Federal funds sold and other short-term investments		492			651		-24.4	%
Total cash and cash equivalents		111,606			89,187		25.1	%

Securities available for sale, at fair value		4,631			6,125		-24.4	%
Securities held to maturity - fair value $6,448
at September 30, 2021, and $7,211 at December 31, 2020		6,219			6,597		-5.7	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost		8,220			9,054		-9.2	%

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 shares authorized;
10,000 shares issued and none outstanding at September 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 September 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		54,376			54,255		0.2	%
Retained earnings		7,718			5,197		48.5	%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares
at September 30, 2021 and December 31, 2020		(12,202	)		(12,202	)	0.0	%
Accumulated other comprehensive income		113			144		-21.5	%
Total Elmira Savings Bank shareholders' equity		63,346			60,711		4.3	%
Noncontrolling interest		50			50		0.0	%
Total shareholders' equity		63,396			60,761		4.3	%
Total liabilities and shareholders' equity	$	643,596		$	644,587		-0.2	%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)

	Three Months Ended						Nine Months
	September 30,						Ended September 30,
(in thousands, except for per share data)		2021		2020	% Change			2021		2020	% Change

Interest and dividend income:
Interest and fees on loans	$	5,054	$	5,140	-1.7	%	$	15,127	$	16,213	-6.7	%
Interest and dividends on securities
Taxable		125		163	-23.3	%		398		553	-28.0	%
Non-taxable		66		72	-8.3	%		202		226	-10.6	%
Total interest and dividend income		5,245		5,375	-2.4	%		15,727		16,992	-7.4	%

Interest expense:
Interest on deposits		363		1,291	-71.9	%		1,632		4,050	-59.7	%
Interest on borrowings		174		232	-25.0	%		526		672	-21.7	%
Total interest expense		537		1,523	-64.7	%		2,158		4,722	-54.3	%
Net interest income		4,708		3,852	22.2	%		13,569		12,270	10.6	%
Provision for loan losses		-		450	-100.0	%		150		1,075	-86.0	%
Net interest income after provision for loan losses		4,708		3,402	38.4	%		13,419		11,195	19.9	%

Noninterest income:
Service fees		308		285	8.1	%		920		871	5.6	%
Gain on sale of loans held for sale		854		1,238	-31.0	%		2,708		2,757	-1.8	%
Other service fees		237		216	9.7	%		677		590	14.7	%
Earnings on bank-owned life insurance		107		103	3.9	%		307		298	3.0	%
Other		58		86	-32.6	%		224		199	12.6	%
Total noninterest income		1,564		1,928	-18.9	%		4,836		4,715	2.6	%

Noninterest expense:
Salaries and benefits		2,228		2,236	-0.4	%		6,687		6,450	3.7	%
Net occupancy		172		388	-55.7	%		1,175		1,217	-3.5	%
Equipment		384		408	-5.9	%		1,210		1,193	1.4	%
Marketing and public relations		254		202	25.7	%		662		525	26.1	%
Professional fees		490		143	242.7	%		794		458	73.4	%
Other		779		778	0.1	%		2,383		2,478	-3.8	%
Total noninterest expense		4,307		4,155	3.7	%		12,911		12,321	4.8	%
Income before income taxes		1,965		1,175	67.2	%		5,344		3,589	48.9	%
Income taxes		454		227	100.0	%		1,227		714	71.8	%
Net income		1,511		948	59.4	%		4,117		2,875	43.2	%
Less: Net income attributable to noncontrolling interest		-		-	-			-		-	-

Net income attributable to Elmira Savings Bank	$	1,511	$	948	59.4	%	$	4,117	$	2,875	43.2	%


Basic earnings per share	$	0.43	$	0.27	59.3	%	$	1.17	$	0.82	42.7	%

Diluted earnings per share	$	0.43	$	0.27	59.3	%	$	1.17	$	0.82	42.7	%

Weighted average shares outstanding - basic		3,522,400		3,509,421	0.4	%		3,518,775		3,506,646	0.3	%

Weighted average shares outstanding - diluted		3,523,526		3,509,421	0.4	%		3,519,663		3,507,728	0.3	%

Dividends per share	$	0.15	$	0.15	0.0	%	$	0.45	$	0.53	-15.1	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)	For the Three Months Ended
	September 30, 2021						September 30, 2020
ASSETS:		Average Balance		Interest	Average Rate			Average Balance		Interest	Average Rate
Loans	$	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 assets		490,885		5,245	4.24			545,721		5,375	3.91

Noninterest-earning assets		160,254						136,645

TOTAL ASSETS	$	651,139					$	682,366

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-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 liabilities		455,926		537	0.46			503,989		1,523	1.20

Noninterest-bearing liabilities		132,024						118,276
Shareholders' equity		63,189						60,101

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	651,139					$	682,366
Interest rate spread					3.78	%					2.71	%
Net interest income/margin			$	4,708	3.81	%			$	3,852	2.81	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES

(Dollars in Thousands)	For the Nine Months Ended
	September 30, 2021						September 30, 2020
ASSETS:		Average Balance		Interest	Average Rate			Average Balance		Interest	Average Rate
Loans	$	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 assets		498,763		15,727	4.20			546,883		16,992	4.13

Noninterest-earning assets		152,323						96,310

TOTAL ASSETS	$	651,086					$	643,193

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-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 liabilities		460,563		2,158	0.62			477,431		4,722	1.32

Noninterest-bearing liabilities		128,161						106,086
Shareholders' equity		62,362						59,676

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	651,086					$	643,193
Interest rate spread					3.58	%					2.81	%
Net interest income/margin			$	13,569	3.62	%			$	12,270	2.98	%

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

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