CBU - Elmira Savings Bank Reports First Quarter Earnings
ELMIRA, N.Y., April 27, 2022 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ: ESBK)
Highlights
- Net income was $1,168,000 for the three months ended March 31, 2022, compared to $1,204,000 for the same period in 2021.
- Diluted earnings per share were $.33 per share for the three months ended March 31, 2022, compared to $.34 per share for the same period in 2021.
- Return on average assets was .76% for the three months ended March 31, 2022, and .75% for the same period in 2021.
- Return on average equity was 7.32% for the three months ended March 31, 2022, compared to 7.93% for the same period in 2021.
"Earnings per share and return on assets are consistent with last year’s first quarter, as we work diligently towards the merger and integration with Community Bank, N.A, which is expected to take place in the second quarter," said Thomas M Carr, President and CEO.
Net Income
Net income totaled $1,168,000 for the three months ended March 31, 2022, a decrease of $36,000 or 3.0% from the $1,204,000 recorded for the same period in 2021. This decrease was the net result of a decrease in net interest income of $399,000 and a decrease in noninterest income of $1,038,000, offset by a decrease in the provision for loan losses of $150,000, a decrease in noninterest expense of $1,177,000, and a decrease in tax expense of $74,000.
Basic and diluted earnings per share for the three months ended March 31, 2022 were both $.33 per share compared to $.34 per share for both for the same period in 2021.
The decrease in noninterest income for the three months ended March 31, 2022 is primarily due to a decrease in the gain on sale of loans, reflecting lower levels of residential mortgages originated for sale to the secondary markets compared to the same period in 2021. The decrease in noninterest expense for the three months ended March 31, 2022 reflects lower levels of salaries and benefits, occupancy expense, and all other expense categories. The lower levels of salaries and benefits and all other expense categories relate to staffing reductions and controlled spending reductions leading up to the upcoming merger.
Net Interest Margin
The net interest margin for the three months ended March 31, 2022 was 3.46% compared to 3.57% for the first quarter of 2021. The yield on average earning assets was 3.79% for the three months ended March 31, 2022, compared to 4.29% for the same period in 2021. The average cost of interest-bearing liabilities was 0.36% for the three months ended March 31, 2022, compared to 0.79% for the three months ended March 31, 2021.
Assets
Total assets decreased $18.9 million or 3.0% to $613.4 million at March 31, 2022, compared to $632.2 million at December 31, 2021. Loans receivable decreased 1.4% to $457.9 million at March 31, 2022, compared to December 31, 2021. The available-for-sale investment portfolio decreased $470,000 from December 31, 2021 to March 31, 2022, and cash and cash equivalents decreased by $10.7 million from December 31, 2021 to March 31, 2022. The decrease in cash resulted primarily from a $17.6 million decrease in deposits.
Nonperforming Loans
Our nonperforming loans to total loans ratio was 0.83% at March 31, 2022, and 0.70% at December 31, 2021. Net loan charge-offs to average loans for the three months ended March 31, 2022 was .05% and .03% for the three months ended March 31, 2021. The allowance for loan losses was 1.22% of total loans at March 31, 2022 and 1.21% at December 31, 2021.
Liabilities
Deposits totaled $523.4 million at March 31, 2022, a decrease of $17.6 million or 3.3% from the December 31, 2021 total of $541.0 million. Borrowed funds decreased by $2.0 million from December 31, 2021 to $20.0 million at March 31, 2022.
Shareholders’ Equity
Shareholders’ equity increased $677,000 to $64.7 million at March 31, 2022 compared to December 31, 2021. The current level of shareholders’ equity equates to a book value per share of $18.16 at March 31, 2022, compared to $18.02 at December 31, 2021. Dividends paid to common shareholders were $0.15 for the three months ended March 31, 2022 and March 31, 2021.
Elmira Savings Bank, with $613.4 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.
On October 4, 2021, Elmira Savings Bank, in a joint press release with Community Bank System, Inc. (NYSE: CBU), announced that it had entered into a definitive agreement to be acquired by Community Bank System’s bank subsidiary, Community Bank, N.A. for approximately $82.8 million in cash. Community Bank System, with reported assets of over $15.3 billion, is headquartered in DeWitt, New York and is among the country’s 125 largest banking institutions. On December 14, 2021, at a Special Shareholders Meeting the shareholders of Elmira Savings Bank approved the merger with more than 98% of the votes cast in favor of the merger. On April 22, 2022, Community Bank, N.A. announced that it had received regulatory approvals to complete its merger with Elmira Savings Bank. The acquisition is expected to be complete effective close of business May 13, 2022, subject to customary closing conditions and approval from the New York State Department of Financial Services.
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) |
| March 31, |
| December 31, |
| 2022 |
| 2021 |
| % Change |
| ASSETS |
| Cash and due from banks |
| $ |
| 90,905 |
| $ |
| 99,785 |
| -8.9 |
| % |
| Federal funds sold and other short-term investments |
| 195 |
| 2,058 |
| -90.5 |
| % |
| Total cash and cash equivalents |
| 91,100 |
| 101,843 |
| -10.5 |
| % |
| Securities available for sale, at fair value |
| 3,639 |
| 4,109 |
| -11.4 |
| % |
| Securities held to maturity - fair value $5,982 |
| at March 31, 2022, and $6,315 at December 31, 2021 |
| 5,992 |
| 6,080 |
| -1.4 |
| % |
| Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost |
| 7,975 |
| 8,087 |
| -1.4 |
| % |
| Loans held for sale |
| 435 |
| 2,374 |
| -81.7 |
| % |
| Loans receivable |
| 457,900 |
| 464,246 |
| -1.4 |
| % |
| Less: Allowance for loan losses |
| 5,569 |
| 5,620 |
| -0.9 |
| % |
| Net loans |
| 452,331 |
| 458,626 |
| -1.4 |
| % |
| Premises and equipment, net |
| 16,397 |
| 15,558 |
| 5.4 |
| % |
| Bank-owned life insurance |
| 16,019 |
| 15,914 |
| 0.7 |
| % |
| Accrued interest receivable |
| 1,376 |
| 1,380 |
| -0.3 |
| % |
| Goodwill |
| 12,320 |
| 12,320 |
| 0.0 |
| % |
| Other assets |
| 5,787 |
| 5,941 |
| -2.6 |
| % |
| Total assets |
| $ |
| 613,371 |
| $ |
| 632,232 |
| -3.0 |
| % |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| Deposits |
| $ |
| 523,402 |
| $ |
| 540,999 |
| -3.3 |
| % |
| Borrowings |
| 20,000 |
| 22,000 |
| -9.1 |
| % |
| Other liabilities |
| 5,315 |
| 5,256 |
| 1.1 |
| % |
| Total liabilities |
| 548,717 |
| 568,255 |
| -3.4 |
| % |
| 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 March 31, 2022 and at December 31, 2021 |
| 9,700 |
| 9,700 |
| 0.0 |
| % |
| Common stock, $1 par value; authorized 5,000,000 shares; 3,651,426 shares issued and 3,557,543 outstanding |
| at March 31, 2022 and 3,641,487 shares issued and 3,547,604 outstanding at December 31, 2021 |
| 3,651 |
| 3,641 |
| 0.3 |
| % |
| Additional paid-in capital |
| 54,551 |
| 54,421 |
| 0.2 |
| % |
| Retained earnings |
| 8,922 |
| 8,288 |
| 7.6 |
| % |
| Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares |
| at March 31, 2022 and December 31, 2021 |
| (12,202 |
| ) |
| (12,202 |
| ) |
| 0.0 |
| % |
| Accumulated other comprehensive (loss) income |
| (18 |
| ) |
| 79 |
| -122.8 |
| % |
| Total Elmira Savings Bank shareholders' equity |
| 64,604 |
| 63,927 |
| 1.1 |
| % |
| Noncontrolling interest |
| 50 |
| 50 |
| 0.0 |
| % |
| Total shareholders' equity |
| 64,654 |
| 63,977 |
| 1.1 |
| % |
| Total liabilities and shareholders' equity |
| $ |
| 613,371 |
| $ |
| 632,232 |
| -3.0 |
| % |
| ELMIRA SAVINGS BANK |
| CONSOLIDATED STATEMENT OF INCOME |
| (unaudited) |
| Three Months Ended |
| March 31, |
| (in thousands, except for per share data) |
| 2022 |
| 2021 |
| % Change |
| Interest and dividend income: |
| Interest and fees on loans |
| $ |
| 4,338 |
| $ |
| 5,212 |
| -16.8 |
| % |
| Interest and dividends on securities |
| Taxable |
| 112 |
| 143 |
| -21.7 |
| % |
| Non-taxable |
| 62 |
| 69 |
| -10.1 |
| % |
| Total interest and dividend income |
| 4,512 |
| 5,424 |
| -16.8 |
| % |
| Interest expense: |
| Interest on deposits |
| 250 |
| 725 |
| -65.5 |
| % |
| Interest on borrowings |
| 140 |
| 178 |
| -21.3 |
| % |
| Total interest expense |
| 390 |
| 903 |
| -56.8 |
| % |
| Net interest income |
| 4,122 |
| 4,521 |
| -8.8 |
| % |
| Provision for loan losses |
| - |
| 150 |
| -100.0 |
| % |
| Net interest income after provision for loan losses |
| 4,122 |
| 4,371 |
| -5.7 |
| % |
| Noninterest income: |
| Service fees |
| 302 |
| 308 |
| -1.9 |
| % |
| Gain on sale of loans held for sale |
| 255 |
| 1,211 |
| -78.9 |
| % |
| Other service fees |
| 201 |
| 210 |
| -4.3 |
| % |
| Earnings on bank-owned life insurance |
| 105 |
| 101 |
| 4.0 |
| % |
| Other |
| 24 |
| 95 |
| -74.7 |
| % |
| Total noninterest income |
| 887 |
| 1,925 |
| -53.9 |
| % |
| Noninterest expense: |
| Salaries and benefits |
| 1,761 |
| 2,307 |
| -23.7 |
| % |
| Net occupancy |
| 412 |
| 626 |
| -34.2 |
| % |
| Equipment |
| 390 |
| 442 |
| -11.8 |
| % |
| Marketing and public relations |
| 92 |
| 241 |
| -61.8 |
| % |
| Professional fees |
| 87 |
| 147 |
| -40.8 |
| % |
| Other |
| 781 |
| 937 |
| -16.6 |
| % |
| Total noninterest expense |
| 3,523 |
| 4,700 |
| -25.0 |
| % |
| Income before income taxes |
| 1,486 |
| 1,596 |
| -6.9 |
| % |
| Income taxes |
| 318 |
| 392 |
| -18.9 |
| % |
| Net income |
| 1,168 |
| 1,204 |
| -3.0 |
| % |
| Less: Net income attributable to noncontrolling interest |
| - |
| - |
| - |
| Net income attributable to Elmira Savings Bank |
| $ |
| 1,168 |
| $ |
| 1,204 |
| -3.0 |
| % |
| Basic earnings per share |
| $ |
| 0.33 |
| $ |
| 0.34 |
| -2.9 |
| % |
| Diluted earnings per share |
| $ |
| 0.33 |
| $ |
| 0.34 |
| -2.9 |
| % |
| Weighted average shares outstanding - basic |
| 3,533,077 |
| 3,514,650 |
| 0.5 |
| % |
| Weighted average shares outstanding - diluted |
| 3,560,126 |
| 3,515,256 |
| 1.3 |
| % |
| Dividends per share |
| $ |
| 0.15 |
| $ |
| 0.15 |
| 0.0 |
| % |
| ELMIRA SAVINGS BANK |
| AVERAGE BALANCES AND INTEREST RATES |
| (Dollars in Thousands) |
| For the Three Months Ended |
| March 31, 2022 |
| March 31, 2021 |
| ASSETS: |
| Average Balance |
| Interest |
| Average Rate |
| Average Balance |
| Interest |
| Average Rate |
| Loans |
| $ |
| 458,353 |
| $ |
| 4,338 |
| 3.80 |
| % |
| $ |
| 485,646 |
| $ |
| 5,212 |
| 4.31 |
| % |
| Short-term investments |
| 1,781 |
| - |
| 0.06 |
| 617 |
| - |
| 0.02 |
| Securities |
| 18,025 |
| 174 |
| 3.89 |
| 21,267 |
| 212 |
| 4.01 |
| Total interest-earning assets |
| 478,159 |
| 4,512 |
| 3.79 |
| 507,530 |
| 5,424 |
| 4.29 |
| Noninterest-earning assets |
| 143,931 |
| 140,728 |
| TOTAL ASSETS |
| $ |
| 622,090 |
| $ |
| 648,258 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| Interest-bearing deposits |
| $ |
| 414,018 |
| $ |
| 250 |
| 0.24 |
| $ |
| 436,731 |
| $ |
| 725 |
| 0.67 |
| Borrowings |
| 21,978 |
| 140 |
| 2.55 |
| 26,933 |
| 178 |
| 2.65 |
| Total interest-bearing liabilities |
| 435,996 |
| 390 |
| 0.36 |
| 463,664 |
| 903 |
| 0.79 |
| Noninterest-bearing liabilities |
| 121,433 |
| 123,014 |
| Shareholders' equity |
| 64,661 |
| 61,580 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ |
| 622,090 |
| $ |
| 648,258 |
| Interest rate spread |
| 3.43 |
| % |
| 3.50 |
| % |
| Net interest income/margin |
| $ |
| 4,122 |
| 3.46 |
| % |
| $ |
| 4,521 |
| 3.57 |
| % |
| Quarter Ended |
| (Dollars in Thousands, Except Per Share Data) |
| 3/31/2022 |
| 12/31/2021 |
| 9/30/2021 |
| 6/30/2021 |
| 3/31/2021 |
| Operating Data |
| Net income |
| $ |
| 1,168 |
| $ |
| 1,102 |
| $ |
| 1,511 |
| $ |
| 1,402 |
| $ |
| 1,204 |
| Net interest income |
| 4,122 |
| 4,437 |
| 4,708 |
| 4,340 |
| 4,521 |
| Provision for loan losses |
| - |
| - |
| - |
| - |
| 150 |
| Non-interest income, ex. Net security gains |
| 887 |
| 1,158 |
| 1,564 |
| 1,347 |
| 1,925 |
| Non-interest expense |
| 3,523 |
| 4,187 |
| 4,307 |
| 3,904 |
| 4,700 |
| Performance Statistics |
| Net interest margin |
| 3.46 |
| % |
| 3.65 |
| % |
| 3.81 |
| % |
| 3.48 |
| % |
| 3.57 |
| % |
| Annualized return on average assets |
| 0.76 |
| % |
| 0.69 |
| % |
| 0.92 |
| % |
| 0.86 |
| % |
| 0.75 |
| % |
| Annualized return on average equity |
| 7.32 |
| % |
| 6.82 |
| % |
| 9.49 |
| % |
| 9.03 |
| % |
| 7.93 |
| % |
| Annualized net loan charge-offs to avg loans |
| 0.05 |
| % |
| 0.01 |
| % |
| 0.14 |
| % |
| 0.06 |
| % |
| 0.03 |
| % |
| Net charge-offs |
| 52 |
| 7 |
| 164 |
| 74 |
| 40 |
| Efficiency ratio |
| 70.3 |
| % |
| 74.8 |
| % |
| 68.7 |
| % |
| 68.6 |
| % |
| 72.9 |
| % |
| Per Share Data |
| Basic earnings per share |
| $ |
| 0.33 |
| $ |
| 0.31 |
| $ |
| 0.43 |
| $ |
| 0.40 |
| $ |
| 0.34 |
| Diluted earnings per share |
| 0.33 |
| 0.31 |
| 0.43 |
| 0.40 |
| 0.34 |
| Dividend declared per share |
| 0.15 |
| 0.15 |
| 0.15 |
| 0.15 |
| 0.15 |
| Book value |
| 18.16 |
| 18.02 |
| 17.86 |
| 17.57 |
| 17.34 |
| Common stock price: |
| High |
| 23.00 |
| 23.22 |
| 14.75 |
| 15.05 |
| 15.96 |
| Low |
| 22.69 |
| 13.50 |
| 12.80 |
| 13.23 |
| 11.48 |
| Close |
| 22.93 |
| 22.84 |
| 13.34 |
| 14.31 |
| 13.50 |
| Weighted average common shares: |
| Basic |
| 3,533 |
| 3,526 |
| 3,522 |
| 3,519 |
| 3,515 |
| Fully diluted |
| 3,560 |
| 3,553 |
| 3,524 |
| 3,520 |
| 3,515 |
| End-of-period common shares: |
| Issued |
| 3,651 |
| 3,641 |
| 3,641 |
| 3,641 |
| 3,636 |
| Treasury |
| 94 |
| 94 |
| 94 |
| 94 |
| 94 |
| Financial Condition Data: |
| General |
| Total assets |
| $ |
| 613,371 |
| $ |
| 632,232 |
| $ |
| 643,596 |
| $ |
| 648,686 |
| $ |
| 659,333 |
| Loans, net |
| 452,331 |
| 458,626 |
| 458,631 |
| 465,271 |
| 476,383 |
| Intangibles |
| 12,320 |
| 12,320 |
| 12,320 |
| 12,320 |
| 12,320 |
| Total deposits |
| 523,402 |
| 540,999 |
| 544,763 |
| 551,245 |
| 562,893 |
| Noninterest-bearing |
| 115,680 |
| 122,268 |
| 118,511 |
| 121,534 |
| 121,101 |
| Savings |
| 99,642 |
| 97,479 |
| 95,299 |
| 93,351 |
| 87,228 |
| NOW |
| 109,999 |
| 112,519 |
| 114,514 |
| 111,343 |
| 111,414 |
| Money Market |
| 30,233 |
| 34,626 |
| 36,577 |
| 32,624 |
| 35,011 |
| Time deposits |
| 167,848 |
| 174,107 |
| 179,862 |
| 192,393 |
| 208,139 |
| Total interest-bearing deposits |
| 407,722 |
| 418,731 |
| 426,252 |
| 429,711 |
| 441,792 |
| Shareholders' equity |
| 64,654 |
| 63,977 |
| 63,396 |
| 62,375 |
| 61,462 |
| Asset Quality |
| Non-performing assets |
| $ |
| 4,173 |
| $ |
| 3,675 |
| $ |
| 3,645 |
| $ |
| 5,023 |
| $ |
| 5,602 |
| Non-performing assets to total assets |
| 0.68 |
| % |
| 0.58 |
| % |
| 0.57 |
| % |
| 0.77 |
| % |
| 0.85 |
| % |
| Allowance for loan losses |
| 5,569 |
| 5,620 |
| 5,627 |
| 5,791 |
| 5,865 |
| Allowance for loan losses to total loans |
| 1.22 |
| % |
| 1.21 |
| % |
| 1.21 |
| % |
| 1.23 |
| % |
| 1.22 |
| % |
| Allowance for loan losses to |
| non-performing loans |
| 148.98 |
| % |
| 174.37 |
| % |
| 175.95 |
| % |
| 116.12 |
| % |
| 108.63 |
| % |
| Non-performing loans to total loans |
| 0.83 |
| % |
| 0.70 |
| % |
| 0.70 |
| % |
| 1.07 |
| % |
| 1.13 |
| % |
| Capitalization |
| Shareholders' equity to total assets |
| 10.54 |
| % |
| 10.12 |
| % |
| 9.85 |
| % |
| 9.62 |
| % |
| 9.32 |
| % |