In a release issued under the same headline yesterday by Elmira Savings Bank (NASDAQ:ESBK) please note that the text of the release held information pertaining exclusively to the second quarter of 2018. The corrected release follows:

ELMIRA, N.Y., July 18, 2019 (GLOBE NEWSWIRE) -- Elmira Savings Bank (NASDAQ:ESBK)

Highlights

• Net income was $718,000 and $1,645,000 for the three and six months ended June 30, 2019 compared to $1,163,000 and $2,294,000 for the same periods in 2018.

• Diluted earnings per share were $.21 per share and $.47 per share for the three and six months ended June 30, 2019 compared to $.33 per share and $.66 per share for the same periods in 2018. 

• Return on average assets was .47% and .56% for the three and six months ended June 30, 2019 compared to .83% for both the three and six months ended June 30, 2018.

• Return on average equity was 4.92% and 5.66% for the three and six months ended June 30, 2019 compared to 8.11% and 8.07% for the same periods in 2018.

“We are pleased with our loan and deposit growth through the first half of the year.  We are focused on improving profitability.  We anticipate our efforts to have a positive impact during the last two quarters of the year,” said Thomas M. Carr, President and CEO. 

Net Income

Net income totaled $1,645,000 for the six months ended June 30, 2019, a decrease of $649,000 or 28% from the $2,294,000 of net income recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $500,000, an increase in the provision for loan losses of $227,000, a decrease in net interest income of $58,000, and a decrease in noninterest income of $129,000, offset by a decrease in tax expense of $265,000.

Net income totaled $718,000 for the three months ended June 30, 2019, a decrease of $445,000 or 38% from the $1,163,000 recorded for the same period in 2018.  This decrease was the net result of an increase in noninterest expense of $474,000, an increase in the provision for loan losses of $137,000, a decrease in noninterest income of $4,000, offset by and a decrease in tax expense of $153,000 and an increase in net interest income of $17,000.

Basic and diluted earnings per share for the six months ended June 30, 2019 were both $.47 per share compared to $.66 per share for both for the same period in 2018.  Basic and diluted earnings per share for the three months ended June 30, 2019 were both $.21 per share compared to $.33 per share for both for the same period in 2018.  Per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

Net Interest Margin

The net interest margin for the six months ended June 30, 2019 was 3.10% compared to 3.35% for the same period in 2018.  The yield on average earning assets was 4.31% for the six months ended June 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.42% for the six months ended June 30, 2019 compared to .99% for the same period in 2018.

The net interest margin for the three months ended June 30, 2019 was 3.06% compared to 3.32% for the same period in 2018.  The average yield on earning assets was 4.36% for the three months ended June 30, 2019 compared to 4.19% for the same period in 2018.  The average cost of interest-bearing liabilities was 1.50% for the three months ended June 30, 2019 compared to 1.01% for the same period in 2018.

Assets

Total assets increased $20.4 million or 3.5% to $610.4 million at June 30, 2019 compared to $590.0 million at December 31, 2018.  Loans, including loans held for sale, increased 3.8% to $502.0 million at June 30, 2019 compared to December 31, 2018.  The available-for-sale investment portfolio decreased $2.4 million from December 31, 2018 to June 30, 2019.

Nonperforming Loans

Our nonperforming loans to total loans ratio was 0.96% at June 30, 2019 and 0.94% at December 31, 2018.  Net loan charge-offs to average loans for the six months ended June 30, 2019 was 0.09% and was 0.07% for the six months ended June 30, 2018.  The allowance for loan losses was 0.89% of total loans at June 30, 2019 and 0.94% of total loans at December 31, 2018.

Liabilities

Deposits total $516.3 million at June 30, 2019, an increase of $24.8 million or 5.0%.  The $24.8 million increase consists of an $34.3 million increase in time deposits, offset by a $4.4 million decrease in savings accounts, a $441,000 decrease in noninterest-bearing accounts, a $4.5 million decrease in interest bearing transaction accounts, and a $162,000 decrease in money market accounts.  Borrowed funds totaled $29.0 million as of June 30, 2019, a decrease of $2.0 million from December 31, 2018.

Shareholders’ Equity

Shareholders’ equity increased $408,000 to $58.4 million at June 30, 2019 compared to December 31, 2018.  The current level of shareholders’ equity equates to a book value per share of $16.60 at June 30, 2019, compared to $16.52 at December 31, 2018.  Dividends paid for common shareholders were $0.23 and $0.46 for the three and six months ended for both June 30, 2019 and 2018.  

Elmira Savings Bank, with $610.4 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.

ELMIRA SAVINGS BANK
CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands, except for share and per share data)	June 30,				December 31,
		2019				2018			% Change
ASSETS
Cash and due from banks	$	22,633			$	19,429			16.5	%
Federal funds sold and other short-term investments		92				94			-2.1	%
Total cash and cash equivalents		22,725				19,523			16.4	%
Securities available for sale, at fair value		22,615				25,051			-9.7	%
Securities held to maturity - fair value $7,344
at June 30, 2019, and $7,638 at December 31, 2018		7,254				7,518			-3.5	%
Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost		9,699				9,462			2.5	%
Loans held for sale		1,451				1,392			4.2	%
Loans receivable		500,593				482,272			3.8	%
Less: Allowance for loan losses		4,444				4,372			1.6	%
Net loans		496,149				477,900			3.8	%
Premises and equipment, net		18,723				16,846			11.1	%
Bank-owned life insurance		14,720				14,444			1.9	%
Accrued interest receivable		1,613				1,566			3.0	%
Goodwill		12,320				12,320			0.0	%
Other assets		3,129				4,018			-22.1	%
Total assets	$	610,398			$	590,040			3.5	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	516,327			$	491,517			5.0	%
Borrowings		29,000				31,000			-6.5	%
Other liabilities		6,714				9,574			-29.9	%
Total liabilities		552,041				532,091			3.7	%
Shareholders' equity:
Preferred stock, $1,000 liquidation value per issued share; 5,000,000 shares
authorized; 10,000 shares issued at June 30, 2019 and at December 31, 2018		9,700				9,700			0.0	%
Common stock, $1 par value; 5,000,000 shares authorized; 3,605,336 shares
issued at June 30, 2019 and 3,597,605 shares issued at December 31, 2018		3,605				3,598			0.2	%
Additional paid-in capital		53,892				53,784			0.2	%
Retained earnings		3,206				3,176			0.9	%
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares
at June 30, 2019 and December 31, 2018		(12,202	)			(12,202	)		0.0	%
Accumulated other comprehensive income (loss)		106				(158	)		-167.1	%
Total Elmira Savings Bank shareholders' equity		58,307				57,898			0.7	%
Noncontrolling interest		50				51			-2.0	%
Total shareholders' equity		58,357				57,949			0.7	%
Total liabilities and shareholders' equity	$	610,398			$	590,040			3.5	%

ELMIRA SAVINGS BANK
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
	Three Months Ended									Six Months Ended
	June 30,									June 30,
(in thousands, except for per share data)		2019			2018		% Change				2019			2018		% Change
Interest and dividend income:
Interest and fees on loans	$	5,464		$	4,786		14.2	%		$	10,647		$	9,582		11.1	%
Interest and dividends on securities
Taxable		252			244		3.3	%			525			496		5.8	%
Non-taxable		109			118		-7.6	%			224			238		-5.9	%
Total interest and dividend income		5,825			5,148		13.2	%			11,396			10,316		10.5	%
Interest expense:
Interest on deposits		1,519			827		83.7	%			2,780			1,577		76.3	%
Interest on borrowings		209			241		-13.3	%			419			484		-13.4	%
Total interest expense		1,728			1,068		61.8	%			3,199			2,061		55.2	%
Net interest income		4,097			4,080		0.4	%			8,197			8,255		-0.7	%
Provision for loan losses		162			25		548.0	%			294			67		338.8	%
Net interest income after provision for loan losses		3,935			4,055		-3.0	%			7,903			8,188		-3.5	%
Noninterest income:
Service fees		345			353		-2.3	%			701			741		-5.4	%
Gain on sale of loans held for sale		425			408		4.2	%			714			786		-9.2	%
Other service fees		212			208		1.9	%			414			401		3.2	%
Earnings on bank-owned life insurance		94			103		-8.7	%			186			193		-3.6	%
Other		50			58		-13.8	%			96			119		-19.3	%
Total noninterest income		1,126			1,130		-0.4	%			2,111			2,240		-5.8	%
Noninterest expense:
Salaries and benefits		2,105			1,998		5.4	%			4,125			3,945		4.6	%
Net occupancy		375			369		1.6	%			820			798		2.8	%
Equipment		401			345		16.2	%			764			682		12.0	%
Marketing and public relations		253			230		10.0	%			499			451		10.6	%
Professional fees		133			93		43.0	%			271			270		0.4	%
Other		939			697		34.7	%			1,581			1,414		11.8	%
Total noninterest expense		4,206			3,732		12.7	%			8,060			7,560		6.6	%
Income before income taxes		855			1,453		-41.2	%			1,954			2,868		-31.9	%
Income taxes		137			290		-52.8	%			309			574		-46.2	%
Net income		718			1,163		-38.3	%			1,645			2,294		-28.3	%
Less: Net income attributable to noncontrolling interest		-			-		-				-			-		-
Net income attributable to Elmira Savings Bank		718			1,163		-38.3	%			1,645			2,294		-28.3	%
Dividend on preferred stock		-			-		-				-			-		-
Income available to common shareholders	$	718		$	1,163		-38.3	%		$	1,645		$	2,294		-28.3	%
Basic earnings per share	$	0.21		$	0.33		-36.4	%		$	0.47		$	0.66		-28.8	%
Diluted earnings per share	$	0.21		$	0.33		-36.4	%		$	0.47		$	0.66		-28.8	%
Weighted average shares outstanding - basic		3,493,298			3,477,210		0.5	%			3,492,571			3,476,037		0.5	%
Weighted average shares outstanding - diluted		3,499,335			3,491,182		0.2	%			3,500,198			3,490,227		0.3	%
Dividends per share	$	0.23		$	0.23		0.0	%		$	0.46		$	0.45		2.2	%
	Share and per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

 

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Three Months Ended
	June 30, 2019									June 30, 2018
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	492,985		$	5,464		4.42	%		$	450,018		$	4,786		4.25	%
Short-term investments		513			3		2.11				479			2		1.39
Securities		39,985			358		3.59				40,283			360		3.59
Total interest-earning assets		533,483			5,825		4.36				490,780			5,148		4.19
Noninterest-earning assets		72,842									68,385
TOTAL ASSETS	$	606,325								$	559,165
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits	$	431,816		$	1,519		1.41			$	386,677		$	827		0.86
Borrowings		29,000			209		2.85				34,407			241		2.77
Total interest-bearing liabilities		460,816			1,728		1.50				421,084			1,068		1.01
Noninterest-bearing liabilities		86,960									80,595
Shareholders' equity		58,549									57,486
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	606,325								$	559,165
Interest rate spread							2.86	%								3.18	%
Net interest income/margin				$	4,097		3.06	%					$	4,080		3.32	%

ELMIRA SAVINGS BANK
AVERAGE BALANCES AND INTEREST RATES
(Dollars in Thousands)	For the Six Months Ended
	June 30, 2019									June 30, 2018
ASSETS:	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate
Loans	$	487,500		$	10,647		4.37	%		$	451,681		$	9,582		4.25	%
Short-term investments		496			5		2.00				456			3		1.36
Securities		40,851			744		3.66				40,898			731		3.59
Total interest-earning assets		528,847			11,396		4.31				493,035			10,316		4.19
Noninterest-earning assets		67,108									63,164
TOTAL ASSETS	$	595,955								$	556,199
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits	$	423,792		$	2,780		1.32			$	384,263		$	1,577		0.83
Borrowings		29,376			419		2.83				34,958			484		2.75
Total interest-bearing liabilities		453,168			3,199		1.42				419,221			2,061		0.99
Noninterest-bearing liabilities		84,198									79,675
Shareholders' equity		58,589									57,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	595,955								$	556,199
Interest rate spread							2.89	%								3.20	%
Net interest income/margin				$	8,197		3.10	%					$	8,255		3.35	%

				Quarter Ended
(Dollars in Thousands, Except Per Share Data)		6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
Operating Data
Net income	$	718		$	927		$	935		$	1,010		$	1,163
Net interest income		4,097			4,100			4,225			4,090			4,080
Provision for loan losses		162			132			150			150			25
Net security gains		-			-			-			-			-
Non-interest income, ex. Net security gains		1,126			985			1,124			1,154			1,130
Non-interest expense		4,206			3,854			4,038			3,891			3,732
Performance Statistics
Net interest margin		3.06	%		3.13	%		3.26	%		3.26	%		3.32	%
Annualized return on average assets		0.47	%		0.64	%		0.65	%		0.71	%		0.83	%
Annualized return on average equity		4.92	%		6.41	%		6.39	%		6.94	%		8.11	%
Annualized net loan charge-offs to avg loans		0.09	%		0.10	%		0.17	%		0.08	%		0.09	%
Net charge-offs		105			117			199			91			96
Efficiency ratio		80.5	%		75.8	%		75.5	%		74.2	%		71.6	%
Per Share Data
Basic earnings per share	$	0.21		$	0.27		$	0.27		$	0.29		$	0.33
Diluted earnings per share		0.21			0.26			0.27			0.29			0.33
Dividend declared per share		0.23			0.23			0.23			0.23			0.23
Book value		16.60			16.59			16.52			16.42			16.36
Common stock price:
High		17.40			19.09			20.47			21.00			20.60
Low		15.69			16.32			15.77			20.10			19.29
Close		16.05			16.75			17.45			20.40			20.43
Weighted average common shares:
Basic		3,493			3,492			3,487			3,481			3,477
Fully diluted		3,499			3,501			3,499			3,497			3,491
End-of-period common shares:
Issued		3,605			3,601			3,598			3,593			3,593
Treasury		94			94			94			94			94
Financial Condition Data:
General
Total assets	$	610,398		$	596,613		$	590,040		$	570,785		$	562,924
Loans, net		496,149			484,780			477,900			462,713			448,690
Intangibles		12,320			12,320			12,320			12,320			12,320
Total deposits		516,327			503,089			491,517			474,449			468,293
Noninterest-bearing		81,249			76,414			81,690			78,324			76,880
Savings		71,100			71,642			75,483			71,748			73,200
NOW		85,130			85,808			89,666			89,835			87,402
Money Market		19,925			19,405			20,087			18,910			21,934
Time deposits		258,923			249,820			224,591			215,632			208,877
Total interest-bearing deposits		435,078			426,675			409,827			396,125			391,413
Shareholders' equity		58,357			58,231			57,949			57,512			57,299
Asset Quality
Non-performing assets	$	4,996		$	5,081		$	4,649		$	4,520		$	4,560
Non-performing assets to total assets		0.82	%		0.85	%		0.79	%		0.79	%		0.81	%
Allowance for loan losses		4,444			4,387			4,372			4,421			4,362
Allowance for loan losses to total loans		0.89	%		0.90	%		0.91	%		0.95	%		0.96	%
Allowance for loan losses to
non-performing loans		93.55	%		89.71	%		97.16	%		100.00	%		99.18	%
Non-performing loans to total loans		0.96	%		1.01	%		0.94	%		0.96	%		0.98	%
Capitalization
Shareholders' equity to total assets		9.56	%		9.76	%		9.82	%		10.08	%		10.18	%

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