Elmira Savings Bank Posts Earnings

• Press Release
• Source: Elmira Savings Bank, FSB
• On 9:45 am EDT, Wednesday October 21, 2009

ELMIRA, N.Y., Oct. 21 /PRNewswire-FirstCall/ -- Elmira Savings Bank, FSB (Nasdaq: ESBK - News) today announced net income for the nine months ended September 30, 2009 totaling $3,273,000 or $1.15 per diluted share, compared to the $1,864,000 of net income or $.61 per diluted share reported for the same period in 2008.

Net income for the three months ended September 30, 2009 totaled $1,156,000 or $.40 per diluted share compared to $727,000 or $.26 per diluted share for the same period in 2008.

Net interest income was $11.8 million for the first nine months of 2009 compared to $10.0 million for the same period last year. Noninterest income increased to $3.6 million from $3.0 million for the same period in 2008. These positive variances were partially offset by an increase in operating expenses to $10.1 million for the first nine months of 2009, from $10.0 million for the same period in 2008, and an increase in the provision for loan losses from $419,000 for the first nine months of 2008, to $592,000 for the first nine months of 2009.

Total assets increased by $25.3 million or 5.3% from $480.6 million at December 31, 2008 to $505.9 million as of September 30, 2009. Total deposits were $360.1 million as of September 30, 2009 compared to $319.9 million as of December 31, 2008. This represents a $40.2 million or 12.6% increase. Total loans decreased by $15.2 million or 4.6% from $332.1 million as of December 31, 2008 to $316.9 million as of September 30, 2009. The allowance for loan losses increased to $3.2 million or 1.02% of total loans as of September 30, 2009 compared to $3.0 million or .91% of total loans as of December 31, 2008.

"During the first nine months of 2009, we have continued to experience the positive impact on earnings of the many income enhancement strategies executed during 2008. These nine months' results continue to represent the highest level of core earnings during the Bank's 140 year history," said Michael P. Hosey, President and CEO. "We are pleased to report net income of $3,273,000, an increase of 76% over the same period in 2008. In addition, our earnings per diluted share increased to $1.15 per share, an increase of 89% from the first nine months of 2008."

Hosey continued, "We are proud of our accomplishments so far in 2009, but continue to work diligently on maintaining and achieving higher levels of profitability in the fourth quarter of 2009 and future years."

Elmira Savings Bank, FSB with $505.9 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a federally chartered Bank with six offices in Chemung County, NY; three offices and a loan center in Tompkins County, NY; one office in Steuben County, NY; one limited service office in Schuyler County, NY; and one office in Cayuga 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, FSB
                  SELECTED CONSOLIDATED INCOME STATEMENT ITEMS
                                   (Unaudited)
                    (In thousands except per share amounts)

                                    Three Months Ended      Nine Months Ended
                                       September 30,          September 30,
                                       -------------          -------------
                                      2009        2008       2009      2008
                                      ----        ----       ----      ----

    Net interest income             $3,971      $3,616    $11,809   $10,012

    Provision for loan losses            0         245        592       419

    Gain on sale of securities           2          17         63       379

    Other noninterest income           978       1,044      3,592     2,621

    Total noninterest expense        3,268       3,384     10,114    10,000

    Income before taxes              1,683       1,048      4,758     2,593

    Net income                       1,156         727      3,273     1,864

    Dividends on preferred stock       365         230      1,044       685

    Income available to common
     shareholders                      791         497      2,229     1,179

    Basic earnings per common share  $0.41       $0.26      $1.16     $0.62

    Diluted earnings per common
     share                           $0.40       $0.26      $1.15     $0.61

    Dividends per common share       $0.20       $0.20      $0.60     $0.60



                            Elmira Savings Bank, FSB
                   SELECTED CONSOLIDATED BALANCE SHEET ITEMS
                                  (Unaudited)
                    (In thousands except per share amounts)

                                September 30  December 31  September 30
                                    2009         2008          2008
                                    ----         ----          ----
    Total assets                  $505,896     $480,600      $462,562

    Loans, net                     316,876      332,092       324,020

    Allowance for loan losses        3,223        3,035         2,662

    Deposits                       360,085      319,876       341,212

    Borrowings                      87,178      105,499        76,119

    Shareholders' equity            54,298       51,559        40,369

    Book value per common
     share                          $18.73       $17.31        $15.99

Buzz up!