 ELMIRA, N.Y., July 22, 2020 GLOBE NEWSWIRE -- Elmira Savings Bank NASDAQ:ESBKHighlights Net income was 909,000 and 1,927,000 for the three and six months ended June 30, 2020 compared to 718,000 and 1,645,000 for the same periods in 2019. Diluted earnings per share were .26 per share and .55 per share for the three and six months ended June 30, 2020 compared to .21 per share and .47 per share for the same periods in 2019. Return on average assets was .57 and .62 for the three and six months ended June 30, 2020 compared to .47 and .56 for the three and six months ended June 30, 2019. Return on average equity was 6.12 and 6.52 for the three and six months ended June 30, 2020 compared to 4.92 and 5.66 for the same periods in 2019.We continue to be concerned about the impact the economic shutdown and subsequent staged reopening due to the COVID-19 pandemic is having on local economies. Our region has been fortunate to have not yet experienced the widespread health crisis like other areas of the state and country, said Thomas M Carr, President and CEO. Carr continued, We are focused on continuing to provide credit and financial services needed in the communities we serve, balancing those efforts with prudent safety measures to minimize potential COVID health risks to our customers and staff.Net IncomeNet income totaled 1,927,000 for the six months ended June 30, 2020, an increase of 282,000 or 17 from the 1,645,000 of net income recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of 786,000 and an increase in net interest income of 221,000, offset by an increase in the provision for loan losses of 331,000, an increase in noninterest expense of 216,000, and an increase in tax expense of 178,000.Net income totaled 909,000 for the three months ended June 30, 2020, an increase of 191,000 or 27 from the 718,000 recorded for the same period in 2019. This increase was the net result of an increase in noninterest income of 630,000, an increase in net interest income of 40,000, and a decrease in noninterest expense of 13,000, offset by an increase in the provision for loan losses of 413,000 and an increase in tax expense of 79,000.The increase in noninterest income for both the three and six months ended June 30, 2020 is primarily due to increases in the gain on sale of loans, reflecting higher levels of residential mortgages originated for sale to the secondary markets compared to the same periods in 2019.For both the three and six months ended June 30, 2020, the increases in the provision for loan losses reflect managements consideration of the uncertainty of ongoing economic conditions resulting from the COVID-19 pandemic and associated economic slowdown. Basic and diluted earnings per share for the six months ended June 30, 2020 were both .55 per share compared to .47 per share for both for the same period in 2019. Basic and diluted earnings per share for the three months ended June 30, 2020 were both .26 per share compared to .21 per share for both for the same period in 2019.Net Interest MarginThe net interest margin for the six months ended June 30, 2020 was 3.07 compared to 3.10 for the same period in 2019. The yield on average earning assets was 4.24 for the six months ended June 30, 2020 compared to 4.31 for the same period in 2019. The average cost of interest-bearing liabilities was 1.38 for the six months ended June 30, 2020 compared to 1.42 for the same period in 2019.The net interest margin for the three months ended June 30, 2020 was 2.98 compared to 3.06 for the same period in 2019. The average yield on earning assets was 4.11 for the three months ended June 30, 2020 compared to 4.36 for the same period in 2019. The average cost of interest-bearing liabilities was 1.32 for the three months ended June 30, 2020 compared to 1.50 for the same period in 2019.AssetsTotal assets increased 69.0 million or 11.4 to 675.9 million at June 30, 2020 compared to 606.8 million at December 31, 2019. Loans, including loans held for sale, increased 1.4 to 527.6 million at June 30, 2020 compared to December 31, 2019. The available-for-sale investment portfolio decreased 4.8 million from December 31, 2019 to June 30, 2020. Total cash and cash equivalents were 79.6 million at June 30, 2020, an increase of 67.5 million from December 31, 2019 when cash totaled 12.0 million.Nonperforming Loans Our nonperforming loans to total loans ratio was 1.02 at June 30, 2020 and 0.82 at December 31, 2019. Net loan charge-offs to average loans for the six months ended June 30, 2020 was 0.09 for both the six months ended June 30, 2020 and June 30, 2019. The allowance for loan losses was 0.96 of total loans at June 30, 2020 and 0.88 of total loans at December 31, 2019.Liabilities Deposits total 551.2 million at June 30, 2020, an increase of 39.0 million or 7.6 from the December 31, 2019 total of 512.2 million. Borrowed funds totaled 56.9 million as of June 30, 2020, an increase of 27.9 million from December 31, 2019 when borrowed funds totaled 29.0 million.Shareholders EquityShareholders equity increased 885,000 to 59.5 million at June 30, 2020 compared to December 31, 2019. The current level of shareholders equity equates to a book value per share of 16.87 at June 30, 2020, compared to 16.67 at December 31, 2019. Dividends paid for common shareholders were 0.15 and 0.38 for the three and six months ended June 30, 2020 and 0.23 and 0.46 for the three and six months ended June 30, 2019. Elmira Savings Bank, with 675.9 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 Banks 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 SAVINGS BANK CONSOLIDATED BALANCE SHEET unaudited in thousands, except for share and per share dataJune 30, December 31, 2020 2019 Change ASSETS Cash and due from banks79,470 11,954 564.8 Federal funds sold and other short-term investments 89 92 -3.3 Total cash and cash equivalents 79,559 12,046 560.5 Securities available for sale, at fair value 6,962 11,802 -41.0 Securities held to maturity - fair value 7,428 at June 30, 2020, and 7,233 at December 31, 2019 6,783 7,018 -3.3 Federal Reserve and Federal Home Loan Bank FHLB stock, at cost 9,893 9,944 -0.5 Loans held for sale 3,919 1,354 189.4 Loans receivable 523,723 518,871 0.9 Less: Allowance for loan losses 5,025 4,576 9.8 Net loans 518,698 514,295 0.9 Premises and equipment, net 15,953 16,210 -1.6 Bank-owned life insurance 15,204 14,919 1.9 Accrued interest receivable 1,761 1,625 8.4 Goodwill 12,320 12,320 0.0 Other assets 4,810 5,296 -9.2 Total assets675,862 606,829 11.4 LIABILITIES AND SHAREHOLDERS EQUITY Deposits551,225 512,215 7.6 Borrowings 56,896 29,000 96.2 Other liabilities 8,245 7,003 17.7 Total liabilities 616,366 548,218 12.4 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, 2020 and at December 31, 2019 9,700 9,700 0.0 Common stock, 1 par value; authorized 5,000,000 shares; 3,616,770 shares issued and 3,522,887 outstanding at June 30, 2020 and 3,606,089 shares issued and 3,512,206 outstanding at December 31, 2019 3,617 3,606 0.3 Additional paid-in capital 54,140 53,993 0.3 Retained earnings 4,022 3,432 17.2 Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares at June 30, 2020 and December 31, 2019 12,202 12,202 0.0 Accumulated other comprehensive income 169 32 428.1 Total Elmira Savings Bank shareholders equity 59,446 58,561 1.5 Noncontrolling interest 50 50 0.0 Total shareholders equity 59,496 58,611 1.5 Total liabilities and shareholders equity675,862 606,829 11.4 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 2020 2019 Change 2020 2019 Change Interest and dividend income: Interest and fees on loans 5,451 5,464 -0.2 11,073 10,647 4.0 Interest and dividends on securities Taxable 177 252 -29.8 390 525 -25.7 Non-taxable 72 109 -33.9 154 224 -31.3 Total interest and dividend income 5,700 5,825 -2.1 11,617 11,396 1.9 Interest expense: Interest on deposits 1,342 1,519 -11.7 2,759 2,780 -0.8 Interest on borrowings 221 209 5.7 440 419 5.0 Total interest expense 1,563 1,728 -9.5 3,199 3,199 0.0 Net interest income 4,137 4,097 1.0 8,418 8,197 2.7 Provision for loan losses 575 162 254.9 625 294 112.6 Net interest income after provision for loan losses 3,562 3,935 -9.5 7,793 7,903 -1. 