Elmira Savings Bank Posts Record Earnings

ELMIRA, NY--(Marketwire - January 20, 2011) - Elmira Savings Bank, FSB (NASDAQ: ESBK) today announced net income for the twelve months ended December 31, 2010 totaling $4,833,000 or $1.72 per diluted share, compared to the $4,526,000 or $1.60 per diluted share reported for the same period in 2009. This was an increase in net income of 6.8% or $307,000.

Net income for the three months ended December 31, 2010 totaled $1,226,000 or $.43 per diluted share, compared to a net income of $1,253,000 or $.45 per diluted share in the fourth quarter of 2009.

Net interest income was $14.9 million for 2010 compared to $15.7 million in 2009. This decline was offset by a decrease of $1.2 million in operating expenses to $11.9 million for 2010 from $13.1 million in 2009.

Total assets increased by $.8 million or .2% from $499.0 million on December 31, 2009 to $499.8 million at December 31, 2010. Total outstanding loans increased by $2.9 million or .9% from $307.6 million as of December 31, 2009 to $310.5 million as of December 31, 2010. Total deposits increased by $4.0 million or 1.1% from $352.6 million as of December 31, 2009 to $356.6 million as of December 31, 2010.

"In 2010 we continued to focus on improving profitability and are pleased to be able to report record earnings of $4.8 million. This level of earnings was accomplished, in part, through fee income earned on the origination of over $100 million of residential mortgages, improvement in our asset quality, and enhancement of our operating efficiency. Although our asset quality has always remained strong, during 2010 we continued to focus on improvement and are proud to have reduced our nonperforming loans by 56% and our loan delinquencies by 50% from December 2009," said Michael P. Hosey, President and Chief Executive Officer.

Hosey continued, "As we move forward into 2011, we believe we are well positioned to continue to improve earnings through loan growth, net interest margin maintenance, and diligent focus on operating efficiency. During the fourth quarter of 2010, we expanded into Cortland County by opening a loan center. We also expanded our delivery channels during the fourth quarter by introducing our mobile banking product, which provides ultimate convenience by facilitating banking through personal devices such as BlackBerrys and cell phones."

Elmira Savings Bank, FSB with $499.8 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a federally chartered Bank with five offices in Chemung County, NY; three offices and a loan center in Tompkins County, NY; one office in Steuben County, NY; one office in Cayuga County, NY; one office in Schuyler County, NY; and a loan center in Cortland 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  Twelve Months Ended
                                       December 31,        December 31,
                                    ---------------------------------------
                                      2010      2009      2010      2009
                                    --------- --------- --------- ---------

Net interest income                 $   3,868 $   3,894 $  14,919 $  15,703

Provision for loan losses                  80         -       515       592

Gain on sale of securities                  5         -       474        63

Other noninterest income                1,070       983     4,119     4,575

Total noninterest expense               3,045     2,956    11,859    13,070

Income before taxes                     1,818     1,921     7,138     6,679

Net income                              1,226     1,253     4,833     4,526

Dividends on preferred stock              365       366     1,451     1,410

Income available to common
 shareholders                             861       887     3,382     3,116

Basic earnings per common share     $    0.44 $    0.46 $    1.75 $    1.62

Diluted earnings per common share   $    0.43 $    0.45 $    1.72 $    1.60

Dividends per common share          $    0.20 $    0.20 $    0.80 $    0.80






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

                                                 December 31,  December 31,
                                                     2010          2009
                                                 ------------  ------------
Total assets                                     $    499,839  $    498,983

Loans receivable                                      310,477       307,616

Allowance for loan losses                               2,909         3,139

Deposits                                              356,621       352,591

Borrowings                                             81,093        87,162

Shareholders' equity                                   56,451        54,546

Book value per common share                      $      19.30  $      18.82

Contact Information: For further information contact: Thomas M. Carr EVP & COO Elmira Savings Bank, FSB 333 East Water Street Elmira, New York 14901 (607) 735-8660 E-Mail

Elmira Savings Bank Posts Record Earnings

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