Elmira Savings Bank Annual Report 2018

FY2018 Annual Report · Elmira Savings Bank

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1869-2019

Annual Report
2018

ELMIRA SAVINGS BANK
Board of Directors

(Front row l-r) Marianne W. Young, Retired President & Chief Executive Officer, Market Street Trust Company ; John R. Alexander, Vice Chairman and Corporate Secretary of the Board & Managing Partner, Sayles & Evans;

Thomas M. Carr, President & Chief Executive Officer; Michael P. Hosey, Chairman of the Board; (Back row l-r) Donald G. Quick, Jr., Retired Partner, Mengel, Metzger, Barr & Co. LLP.;

Kristin A. Swain, Retired Executive Director, The Rockwell Museum; A. Scott Welliver, Chairman & Chief Executive Officer, Welliver; Arie J. van den Blink, Chairman & Chief Executive Officer, The Hilliard Corporation.

Not pictured: Katherine H. Roehlke, President & Chief Executive Officer, F.M. Howell & Company.

Our Mission

THE MISSION OF ELMIRA SAVINGS BANK is to provide above
average returns to our shareholders while providing a broad
range of financial services that meet the needs of the individuals,
businesses, and organizations of our community.

We will achieve this through our commitment to:
• Consistent and superior quality service for our customers.
• A culture that incents employees to excel personally and

professionally.

• Leadership in and support for our community.
• Independence as a local community bank.

ELMIRA SAVINGS BANK
Senior Officers

(Left to right): Kevin J. Berkley, Executive Vice President & Senior Loan Officer;

Thomas M. Carr, President & Chief Executive Officer; Donna J. Tangorre, Senior Vice President & Retail Banking Manager;

Jason T. Sanford, Senior Vice President & Chief Financial Officer.

I am pleased to write this message to

you, our loyal shareholders, updating
you on the Bank’s progress during

2018. The year 2018 produced solid
financial results highlighted by net
income of $4.2 million, the issuance of
a 5% stock dividend and balance sheet
growth of 6.4%. The balance sheet
growth was composed of 5.2% of loan
portfolio growth, which was funded by
deposit growth of 7.6%.

Thomas M. Carr
President & Chief Executive Officer

TO OUR
Shareholders

In addition to the financial results, we
continued to invest in developing our
staff’s sales abilities, improving our
customer-based technologies, and
launching a new marketing campaign.

Net income totaled $4.2 million for 2018
compared to $4.9 million in 2017. The
decrease in net income is due to a $0.6
million increase in income tax expense
and a decrease of $0.9 million in non-
interest income partially offset by a $0.5
million decrease in the provision for
loan losses and $0.4 million decrease in
non-interest expense. The results from
2017 were positively impacted by the
one-time tax adjustment due to the tax
law changes, which totaled $1.2 million.

The $4.2 million of net income produced
diluted earnings per share of $1.21, the
same as 2017. During the year, the Bank
issued a 5% stock dividend while paying
a cash dividend of $0.92 per share.

Net interest income totaled $16.6
million, slightly ahead of the $16.5
million recorded in 2017. Our net
interest margin decreased by 1 basis
point from 3.32 in 2017 to 3.31 in 2018.
This slight margin decline was more
than offset in net interest income by
earnings on increases in average loans
and deposits.

Non-interest income declined by $0.9
million, primarily the result of lower
sales of mortgages to the secondary
markets. During 2018, the Bank sold
$39.6 million, or 49%, of its total
mortgage production compared
to $63.3 million, or 71%, of its total
mortgage production in 2017. The effect
of this lower sales volume was to reduce
our gain on sale of mortgage revenue
by $1.1 million from $2.7 million in 2017
to $1.6 million in 2018.

Non-interest expense was well
controlled in 2018 totaling $15.5 million,
or 2.5%, below the 2017 level of $15.9
million. Salaries and benefits were
$95,000, or 1.2%, lower year to year.
Marketing expense and professional
fees were $148,000 and $179,000 lower
respectively. These positive variances
were partially offset by increases in net
occupancy and equipment expense of
$97,000 and $114,000 respectively.

The loan portfolio increased by $23.6
million, or 5.2%, from December 31,
2017 to December 31, 2018. The 5.2%
loan growth rate was significantly
higher than the two previous years,
which were less than one percent
growth. The $23.6 million of growth was
composed of consumer loan growth of
$9.5 million, commercial loan growth of
$11.5 million and residential mortgage
loan growth of $2.2 million.

Residential mortgage originations
totaled $81.7 million in 2018 compared
to $89.7 million in 2017. During 2018,
the Bank added $42.0 million of
mortgages to its portfolio compared to
$26.4 million added in 2017. The result
of the increase in portfolio loans was
$2.2 million of residential mortgage
portfolio growth.

Page 4 : Elmira Savings Bank : 2018 ANNUAL REPORT

raise of $9.5 million, the repurchase of

We were able to repurchase these

up payments on multiple websites or

the preferred stock which totaled $9.4

shares with the capital raised in

paying by check. The latest version of

million and the difference between net
income and dividends. Our common
shares outstanding had a book value
per share of $17.07 at December 31,
Consumer loan originations were $30.5
2017, an increase of $0.33 per share
million in 2018, an increase of $5.8
from December 31, 2016.
million, or 23%, from the $24.7 million
of originations in 2017. This increase
We invested in our branch network
in production helped to grow our
in 2017 by completing our new full-
consumer loan portfolio by $9.5 million,
service branch located at 602 West
or 17%.
State Street in Ithaca in May. This
historic rehabilitation was a major
Commercial loan originations totaled
management focus for the last half of
$34.9 million in 2018, slightly above
2016 and the first five months of 2017.
the $34.3 million from 2017. The 2018
The completed facility, showcased in
originations increased our commercial
this report, is the centerpiece of our
loan portfolio $11.5 million, or 9%.
franchise in Tompkins County. The
Our asset quality remains strong with
branch consists of a full-service Bank
$4.5 million in non-performing loans
Branch of 2,100 square feet with two
representing 0.93% of total loans.
drive-through lanes, one of which
Our delinquent loans were 0.98% of
includes a state of the art ATM.
total loans as of December 31, 2018
In addition to the Bank Branch, we have
compared to 0.95% for 2017.
leasable space on the second floor.
The investment portfolio decreased
We also maintain control of several
slightly during the year from $42.3
vacant parcels surrounding the State
million at December 31, 2017 to $42.0
Street Branch that we look forward to
million at the end of 2018. We continue
developing in the future.
to avoid low yielding investments in
During 2017 we restructured our capital,
favor of loan portfolio growth. Due to
first in April with the successful private
deposit growth exceeding loan growth,
placement of 548,430 shares of common
we had an increase in cash of $11.6
stock. These shares were placed with
million, which we intend to deploy in
select investors with no single investor
loan originations.
acquiring more than 5% of total
The $34.8 million of deposit growth,
outstanding shares. The proceeds from
or 7.6%, was composed of a $24.4
this issuance totaled $9.5 million.
million increase in time deposits, a $5.1
In December, the Bank repurchased all
million increase in savings accounts,
of its shares of preferred stock that were
a $7.6 million increase in non-interest
outstanding. The liquidation value of
bearing accounts, and a $2.9 million
these shares was $10.0 million. They
increase in interest bearing transaction
also had a dividend rate of 9.00%. The
accounts. These favorable variances
shares were repurchased at a discount
were partially offset by a $5.3 million
of $600,000 with the total purchase
decrease in money market accounts.
price being $9.4 million.
The 7.6% growth in deposits was more
than twice the industry average for

the private placement of common
stock. After this transaction, the Bank
maintained a core capital ratio of 8.5%
as of December 31, 2017, significantly
community banks and nearly three
above the well-capitalized level
times the Bank’s average deposit growth
established by Bank regulators.
rate for the three previous years, which
was 2.7%. The $34.8 million of deposit
The anticipated effect of retiring
growth is attributed to growth across all
preferred shares will be to reduce the
13 branches in our network.
overall dividends paid out of earnings,
increase the net income available to
The Bank continued to lessen its
common shareholders, and improve
reliance on borrowed funds, reducing
the Bank’s tangible common equity
them from $35.0 million in 2017 to
ratio. We were pleased to execute this
$31.0 million in 2018.
repurchase and complete the second
We continued to invest in technologies
step of our capital strategy during 2017.
that protect and improve the customer
As mentioned, we continue to
experience. During 2018, we
work on improving operations and
implemented SecurLOCK Equip,
processes and are pleased to have
providing enhanced customer controls
implemented a mortgage loan process
to better protect our debit cardholders.
management system to improve the
We also implemented Electronic
time it takes us to process a mortgage
Signature throughout our branch
loan from application to closing. This
network, allowing customers to sign
effort began with an analysis of our
Bank documents electronically. Finally,
2016 mortgage originations which
we upgraded our website to a more
provided us with key information to
responsive design, with greater
standardize our process and establish
functionality and enhanced formats,
benchmarks. The implementation of
making the site more user friendly. Please
this system has produced early results
visit us at www.elmirasavingsbank.com.
that are encouraging. In the first half
We have experienced a considerable
of 2017, our mortgage turn time was
increase in the use of our Mobile
approximately 60 days. By the 4th
Banking app during 2018. Our app has
quarter of 2017, the average turn time
one touch access convenience, utilizing
was 44 days, an improvement of 16 days
fingerprint technology that allows
from application to closing.
you, in seconds, to have your current
Finally, we continued to invest in
banking information. We have over 5,000
technology. We recently continued
customers using this modern technology.
expansion of our Electronic Banking
We are focused on growing the business
Services through an upgrade to our Bill
and continued, in 2018, to invest in
Pay Services, as well as expansion of the
our staff by providing professional
Touch ID and Passcode access within
sales training to all of our employees
Mobile Banking. Bill Pay allows users
who regularly interact with our
to pay all of their bills through Online
customers. We believe the benefit of this
or Mobile Banking rather than setting
investment is evidenced in our deposit
and loan growth.

Bill Pay features an updated look and
streamlined efficiencies within Online
Banking, as well as expanded abilities
offered through Mobile Banking.
2019 marks the Bank’s 150th
Additionally, the Elmira Savings Bank
anniversary of being chartered on
Mobile Banking App was recently
March 19, 1869. To celebrate this
updated to allow users to access all
milestone, we unveiled a special 150th
functionalities of the App using a
anniversary logo that we have been
fingerprint or six-digit Passcode of
using in our campaigns and as a theme
their choice.
of this Annual Report. We have planned
events in all of the markets we serve
As we look forward to 2018, we are
to commemorate this anniversary. We
dedicated to organically growing our
hope you enjoy the historical images we
business. We are fortunate to have
have incorporated into this report.
strong and expanding economies in our
geographic footprint and will continue
Looking back over the last 150 years
to focus on increasing our market share
reveals sweeping changes in society and
in these regions.
the recollection of epic challenges, both
manmade and natural. It has required
We will continue to invest in our staff
great determination and leadership to
and in technology to keep improving
survive these obstacles and preserve
the quality and convenience of every
our independence as a community
customer interaction with our institution.
bank. Elmira Savings Bank was one
We have, and going forward will, benefit
of the first New York mutual savings
financially from changes in the federal
banks to convert to a public form of
tax code. These changes have reduced
ownership in the 1980s and it remains
our tax burden and will benefit our
one of the few banks in upstate New
shareholders, customers and employees.
York to have made that transition and
maintain its independence.
We remain optimistic that regulatory
relief will occur in a meaningful way
The Board of Directors is actively
and provide us with reductions in
engaged in overseeing the strategic
compliance-related burden.
direction of the organization while
Bank Officers and employees are
We are determined to provide excellent
committed to executing the objectives.
service for our customers and strong
We continually strive to improve while
financial results for shareholders.
fulfilling the mission of a community
bank. We appreciate your support as
We appreciate your loyal support as
a shareholder and look forward to
shareholders and look forward to
continuing our journey in 2019.
continuing to build our business.

Thomas M. Carr
Thomas M. Carr
President and
President and
Chief Executive Officer
Chief Executive Officer

Elmira Savings Bank : 2017 ANNUAL REPORT : Page 5

Elmira Savings Bank : 2018 ANNUAL REPORT : Page 5

ELMIRA SAVINGS BANK
Officers

FINANCE
Jason T. Sanford

Senior Vice President

Chief Financial Officer

John J. Stempin

Vice President

Controller

Robert W. Hazelton III

Vice President

Dawn Siglin

Vice President

Kathleen Bange

Assistant Secretary

Judy A. Woodruff

Assistant Vice President

Taryn Schwartz

Assistant Secretary

HUMAN RESOURCES
Bradley V. Serva

Senior Vice President

Stacy Ward

Assistant Secretary

LENDING
Kevin J. Berkley

Executive Vice President

Senior Loan Officer

Christopher J. Giammichele

Senior Vice President

Gary O. Short

Senior Vice President

Erin Thomas-Allen

Assistant Secretary

MANAGEMENT
INFORMATION
SYSTEMS
Joseph L. Walker

Vice President

Phillip J. Collins

Assistant Vice President

OPERATIONS
Margaret A. Phillips

Vice President

RETAIL SERVICES
Donna J. Tangorre

Senior Vice President

Retail Banking Manager

Renee A. Wheeler

Vice President

Linda S. Confer

Assistant Vice President

Kimberly A. Elliott

Assistant Vice President

Deborah French

Assistant Vice President

John Strong

Assistant Vice President

Cory Eddy

Assistant Treasurer

Lorenda D. Gneo

Assistant Treasurer

Ellaminda Leader

Assistant Secretary

EXECUTIVE
Thomas M. Carr

President

Chief Executive Officer

Anne M. Lavancher

Assistant Secretary

AUDIT AND CONTROL
Edith B. Harkness

Vice President

Meredith Tigue

Vice President

Jill M. McConnell

Assistant Secretary

COLLECTIONS
Amber Simms

Assistant Secretary

CREDIT
Carrie L. Spencer

Vice President

Susan M. Cook

Assistant Vice President

Amy Frisbie

Assistant Vice President

Frank P. Spena, Jr.

Assistant Vice President

Page 6 : Elmira Savings Bank : 2018 ANNUAL REPORT

ELMIRA SAVINGS BANK
Employees

Laurel Griffith

Meggie Hall

Kristin Haner

Brooke Hockeborn

Malissa Hootman

Jennifer Hourihan

Rachel Houseknecht

Margaret Hurd

Blaine Johnson-White

William Klinko

Joshua Knoll

Keegan Knoll

Debra Sue Knowles

Brian Kunk-Czaplicki

Theresa Laney

Shaina Leister

Christina M. Losey

Trisha Luchaco

Colleen Manuel

Laurel Mareck

Julie May

Lindsey McCutcheon

Cherry Merrill

Kala Mitchell

Haley Mullins

Katie Murphy

Alexis Naylor

Kimberly O’Dell

Jessica Ober

Jennifer Orr

Christina Allen

Shannon J. Bailey

Dwayne Balcom

Blair Beavers

Mary A. Becker

Joyelle Briggs

Amber Brimmer

Marilynne Burchard

Alyssa Carlisle

Janet S. Caswell

Jennifer Catron

Jacqueline Cecce

Brenda Cimakasky

Mandie Close

Jessica Coates

Ashley Congdon

Michele Corby

Kristie Cummings

Eric DeJesus

Falon Denison

Brianna DiMento

Tina Dittler

Pamela Donovan

Nicholas Dutcher

April Eggleston-Branston

Kelly Ewanyk

Shanna Flint

Valerie Friedrich

Patricia Frisbie

Ilene Girardi

Mario Gonzalez-Ayon

Sarah Parker

Eileen Payne

James Pollen

Michael Price

Hannah Qualey

Laura Reynolds

April Roberts

Deborah M. Rockwell

Amber Rogers

Sharla R. Root

Kristin Sad

Denise Sarro

Youngmi Schickel

Ashley Schultz

Samantha Senich

Brad Serva

Kadison Shaver

Mark Simon II

Christine Snyder

Jennifer Stampp

Tania-lynn Suhm

Desirea Sullivan

Ashley Tallarida

Michelle M. Tilden

Jenara Towner

Suzanne Walsh

Joseph Whitaker

Tracy Wiles

Jenna Wilson

Jennifer Wood

Stacy Woodworth

Elmira Savings Bank : 2018 ANNUAL REPORT : Page 7

Board of Directors

Bank Officers

127

Bank Employees

Bank Locations

n
o
i
t
i
s
o
p
m
o
C
t
e
s
s
A

■ Cash & Investments
■ Commercial Mortgages ■ Consumer Loans
■ Commercial Loans

■ Other Assets

■ Residential Mortgages

14,781

Depositors

Total Assets
___________________________________
___________________________________
___________________________________
$590,040
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

$273,952

$11,529

$224

1903

1950

2000

2018

1869-78
David Decker

1890-97
Jackson Richardson

1897-1900
Thomas S. Flood

1901-14
Jesse L. Cooley

1914-23
William H. Ferguson

1923-33
John W. Huston

1933-40
Seymour Lowman

1940-60
Herbert C. Wing

127

Bank Employees

21,145

Bank Customers

376

Bank Shareholders

14,781

Depositors

5,621

Mortgages

1869–2019
Celebrating 150 Years
of Community Building

All data as of December 31, 2018

Bank Presidents

1940-60
Herbert C. Wing

1960-67
Russell F. Gee Jr.

1967-70
Lee D. Blackwell

1970-80
William S. Bushnell

1980-95
Robert P. Carges

1995-2003
John C. Brugler

2003-13
Michael P. Hosey

2013-
Thomas M. Carr

Assets, Deposits, and Loans ($000)

Total Assets Total Deposits Total Loans

SELECTED FINANCIAL DATA

$545,969

$561,344

$573,450

$554,560

$440,472

$469,547

$454,998

$459,528

$2,765

$456,762

$460,628

$422,561

$418,146

$590,040

(in thousands, except share and per share amounts)

FINANCIAL STATEMENT HIGHLIGHTS

2018

2017

$491,517

$483,664

Assets

$ 590,040

554,560

Loans (including loans held for sale)

483,664

460,628

Allowance for loan losses

Deposits

Shareholders’ equity

Net interest income

Provision for loan losses

Non-interest income

Non-interest expense

2014

2015

2016

2017

2018

Per Share Data

Net income attributable to Elmira Savings Bank

Diluted Earnings Per Common Share

Cash Dividends Per Common Share

1.19

1.21

1.11

0.94

PER SHARE INFORMATION

Basic earnings per share

Diluted earnings per share

Book value per share

Cash dividend per share

0.88

0.92

SELECTED RATIOS

2014

2015

2016

2017

2018

Net Income ($000)

Net Income ($000) Available to Common Shareholders

Return on average assets

Return on average equity

Shareholders’ equity to assets

Dividend payout ratio

Efficiency ratio

OTHER SELECTED DATA

Number of offices

$4,851

Number of automated teller machines

4,372

4,442

491,517

456,762

57,949

16,570

367

4,518

15,489

4,239

1.22

1.21

16.52

0.92

56,681

16,548

895

5,437

15,884

4,851

1.22

1.21

16.26

0.88

0.75%

7.36%

0.86%

7.78%

9.82%

10.22%

75.41%

72.13%

73.45%

72.25%

$4,122

$4,337

$4,006

$4,239

$3,665

$2,765

$3,222

$3,437

Weighted average shares outstanding

3,479,916

3,281,706

Weighted average diluted shares outstanding

3,494,218

3,297,938

2014

2015

2016

2017

2018

Page 10 : Elmira Savings Bank : 2018 ANNUAL REPORT

SELECTED FINANCIAL DATA

Consolidated Balance Sheets
Elmira Savings Bank and Subsidiaries

(in thousands, except for share and per share data)

ASSETS
Cash and due from banks
Federal funds sold and other short-term investments

Total cash and equivalents

Securities available for sale, at fair value
Securities held to maturity - fair value of $7,638
at December 31, 2018, and $8,186 at December 31, 2017

Federal Reserve and Federal Home Loan Bank (FHLB) stock, at cost

Loans held for sale

Loans receivable
Less: Allowance for loan losses

Net Loans

Premises and equipment, net
Bank-owned life insurance
Accrued interest receivable
Goodwill
Other assets

Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Borrowings
Other liabilities

Total liabilities

SHAREHOLDERS’ EQUITY:
Preferred stock, $1 par value; $1,000 liquidation value per issued share; 5,000,000 shares
authorized; 10,000 shares issued at December 31, 2018 and at December 31, 2017
Common stock, $1 par value; authorized 5,000,000 shares; 3,597,605 shares
issued at December 31, 2018 and 3,410,622 at December 31, 2017
Additional paid-in capital
Retained earnings
Treasury stock, at cost - 93,883 common shares and 10,000 preferred shares
at December 31, 2018 and December 31, 2017
Accumulated other comprehensive loss

Total Elmira Savings Bank shareholders’ equity
Noncontrolling interest

Total shareholders’ equity

December 31,
2018

December 31,
2017

19,429
94

19,523

25,051

7,518

9,462

1,392

482,272
4,372

477,900

16,846
14,444
1,566
12,320
4,018

7,800
97

7,897

24,056

8,039

10,221

1,999

458,629
4,442

454,187

16,772
13,982
1,497
12,320
3,590

$ 590,040

554,560

$491,517
31,000
9,574

$456,762
35,000
6,117

532,091

497,879

9,700

3,598
53,784
3,176

(12,202)
(158)

57,898
51

57,949

9,700

3,411
50,258
5,493

(12,202)
(31)

56,629
52

56,681

Total liabilities and shareholders’ equity

$ 590,040

554,560

Elmira Savings Bank : 2018 ANNUAL REPORT : Page 11

Consolidated Statements of Income
Elmira Savings Bank and Subsidiaries

(in thousands, except for per share amounts)

INTEREST AND DIVIDEND INCOME
Interest and fees on loans
Interest and dividends on securities
Taxable
Non-taxable

Total interest and dividend income

INTEREST EXPENSE
Interest on deposits
Interest on borrowings

Total interest expense

Net interest income
Provision for loan losses

Years Ended December 31
2017

2016

2018

$ 19,569

$ 18,971

$ 19,056

1,037
472

965
610

1,000
832

21,078

20,546

20,888

3,565
943

2,951
1,047

4,508

3,998

3,055
1,313

4,368

16,570
367

16,548
895

16,520
487

Net interest income after provision for loan losses

16,203

15,653

16,033

NONINTEREST INCOME
Service fees
Gain on sale of loans held for sale
Net gain on sale of securities
Other service fees
Earnings on bank-owned life insurance
Other

Total noninterest income

NONINTEREST EXPENSE
Salaries and benefits
Net occupancy
Equipment
Marketing and public relations
Professional fees
Other

Total noninterest expense

Income before income taxes
Income taxes

Net income
Less: Net income attributable to noncontrolling interest

1,456
1,588
-
813
384
277

1,485
2,701
-
739
390
122

1,420
3,061
180
728
403
108

4,518

5,437

5,900

8,088
1,596
1,392
736
541
3,136

8,183
1,499
1,278
884
720
3,320

7,927
1,416
1,200
794
517
3,748

15,489

15,884

15,602

5,232
988

4,244
5

5,206
350

4,856
5

6,331
1,989

4,342
5

Net income attributable to Elmira Savings Bank

$ 4,239

$ 4,851

$ 4,337

Dividend on preferred stock

845

900

Income available to common shareholders

$ 4,239

$ 4,006

$ 3,437

Basic earnings per common share
Diluted earnings per common share

$
$

1.22
1.21

$
$

1.22
1.21

$
$

1.20
1.19

Per share data has been restated to reflect a 5% stock dividend paid on June 15, 2018.

Page 12 : Elmira Savings Bank : 2018 ANNUAL REPORT

Consolidated Statements of Comprehensive Income
Elmira Savings Bank and Subsidiaries

(in thousands)

Net income

OTHER COMPREHENSIVE LOSS
Net unrealized holding losses on securities available for sale
Tax benefit

Realized securities gains included in net income
Tax expense

Other comprehensive loss, net of tax

Comprehensive income

Years Ended December 31,

2018

2017

2016

$ 4,239

$ 4,851

$ 4,337

(163)
42
(121)
-
-
-

(121)

(20)
8
(12)
-
-
-

(12)

(459)
177
(282)
(180)
70
(110)

(392)

$ 4,118

$ 4,839

$ 3,945

Consolidated Statements of Shareholders’ Equity
Elmira Savings Bank and Subsidiaries

(in thousands, except for share
and per share amounts)

Preferred
Stock

Common
Stock

Additional
Paid-in
Capital

Retained
Earnings

Treasury
Stock

Accumulated
Other
Comprehensive
Loss

Noncontrolling
Interest

Total

Balance at December 31, 2017

$ 9,700

3,411

50,258

5,493

(12,202)

(31)

56,681

Reclassification of certain income tax
effects from accumulated other
comprehensive loss

Net income

Other comprehensive loss

5% stock dividend (166,481 shares)

Stock based compensation expense

Restricted stock grants (11,707 shares)

Exercise of stock options,
net (8,795 shares)

Preferred stock repurchased -
noncontrolling interest

Cash dividend on preferred stock

Cash dividend on common stock
($.92 per share)

4,239

166

3,213

(3,379)

230

(12)

(3,183)

(6)

(121)

(1)

(5)

4,244

(121)

230

104

(1)

(5)

(3,183)

Balance at December 31, 2018

$9,700

3,598

53,784

3,176

(12,202)

(158)

57,949

Per share data has been restated to reflect the 5% stock dividend paid on June 15, 2018.

Elmira Savings Bank : 2018 ANNUAL REPORT : Page 13

To the Board of Directors and Shareholders of Elmira Savings Bank

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),

the consolidated balance sheets of Elmira Savings Bank and subsidiaries as of December 31, 2018 and 2017, and the

related statements of income, comprehensive income, shareholders’ equity, and cash flows (not presented herein) for

each of the three years in the period ended December 31, 2018, and in our report dated March 18, 2019, we expressed

an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying

condensed financial statements is fairly stated, in all material respects, in relation to the consolidated financial

statements from which it has been derived.

Cranberry Township, Pennsylvania

March 18, 2019

MARKET PRICE INFORMATION

Quarters

2018

2017

The Bank’s common stock was first offered in March

1985, and is now listed on the NASDAQ exchange under

the symbol ESBK. This table summarizes the high and low

market price for the Bank’s stock during 2018 and 2017.

High

Low

High

Low

First

19.95

19.19

20.71

19.31

Second

20.60

19.29

20.71

18.71

Third

21.00

20.10

18.86

Fourth

20.47

15.77

19.90

18.00

ANNUAL SHAREHOLDERS’ MEETING
The Annual Shareholders’ Meeting will be held at 10:00 a.m. on April 23, 2019 at the
Clemens Center, 207 Clemens Center Parkway, Elmira, NY 14901

SHAREHOLDER INQUIRIES
The Bank’s transfer agent is:
Computershare, Inc.
Computershare Investor Services
PO Box 30170, College Station, TX 77842
(800) 368-5948
•
The Bank’s Annual Report on Form 10-K will be furnished
without charge upon written request to:
Thomas M. Carr
President & Chief Executive Officer
Elmira Savings Bank
333 E. Water Street, Elmira, NY 14901

Page 14 : Elmira Savings Bank : 2018 ANNUAL REPORT

Finger Lakes
Region

ELMIRA SAVINGS BANK
Locations

MAIN OFFICE
333 East Water Street
Elmira, NY 14902-9967
607-734-3374

STATE STREET
602 West State Street
Ithaca, NY 14850
607-272-111

HORSEHEADS
2149 Grand Central Avenue
Horseheads, NY 14845
607-734-3374

SOUTH MEADOW
702 South Meadow Street
Ithaca, NY 14850
607-272-2211

SOUTHPORT
1136 Pennsylvania Avenue
Elmira, NY 14904
607-734-3374

TRIPHAMMER
2300 North Triphammer Road
Suite 5
Ithaca, NY 14850
607-257-8808

WEST ELMIRA
930 West Church Street
Elmira, NY 14905
607-734-3374

BIG FLATS
971 County Route 64
Elmira, NY 14903
607-734-3374

ELMIRA HEIGHTS
2075 Lake Road
Elmira, NY 14903
607-734-3374

CORNING
19 East Market Street, Suite 101
Corning, NY 14830
607-962-0812

ERWIN
404 South Hamilton Street
Painted Post, NY 14870
607-936-1806

MORAVIA
142 Main Street
Moravia, NY 13118
315-497-1300

VESTAL LOAN CENTER*
3439 Vestal Parkway East
Vestal, NY 13850
607-729-0386

WATKINS GLEN
712 North Franklin Street
Watkins Glen, NY 14891
607-535-4108

ARNOT MALL ATM
Entrance 4 - Center Court
Horseheads, NY 14845
607-734-3374

*ATM available at all locations except for the Vestal Loan Center.

Elmira Savings Bank : 2018 ANNUAL REPORT : Page 15

www.elmirasavingsbank.com

Member FDIC | Equal Housing Lender

Design: PS Graphic Design

Photography: Foto Forum

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