ESBK Elmira Savings Bank

Elmira Savings Bank (NASDAQ: ESBK) today announced net income for the nine months ended September 30, 2012 totaling $3,914,000 or $1.20 per diluted share, compared to the $3,738,000 of net income or $1.08 per diluted share reported for the same period in 2011. This represents a 5% or $176,000 increase in net income.

Net income for the three months ended September 30, 2012 totaled $1,398,000 or $.44 per diluted share compared to $1,316,000 or $.31 per diluted share for the same period in 2011. This represents a 6% or $82,000 increase in net income.

Net interest income was $11.4 million for the first nine months of 2012 compared to $11.7 million for the same period last year. Our noninterest income was $4.5 million for the nine months ended September 30, 2012 versus $3.3 million for the same period a year ago. Noninterest expense increased by $607,000 during the nine months ended September 30, 2012 to total $9.6 million compared to $9.0 million for the same period a year ago.

Total assets increased by $10.8 million from $523.4 million at December 31, 2011 to $534.2 million as of September 30, 2012. Total deposits were $406.2 million as of September 30, 2012 compared to $381.7 million as of December 31, 2011. This represents a $24.5 million or 6% increase. Total loans increased by $28.1 million or 8% from $348.8 million as of December 31, 2011 to $376.9 million as of September 30, 2012.

"During the first nine months of 2012, our mortgage and consumer loan production remained strong. This activity has allowed us to grow our loan portfolio, recognize increased levels of revenue from our secondary market activities, and avoid participating in the historically low yield investment market," said Michael P. Hosey, President and CEO. Hosey continued, "We continue to protect our net interest margin, monitor asset quality, and evaluate our capital needs and alternatives."

Elmira Savings Bank, with $534.2 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 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; 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
                SELECTED CONSOLIDATED INCOME STATEMENT ITEMS
                                 (Unaudited)
                   (In thousands except per share amounts)

                                   Three Months Ended    Nine Months Ended
                                     September 30,         September 30,
                                 --------------------- ---------------------
                                    2012       2011       2012       2011
                                 ---------- ---------- ---------- ----------

Net interest income              $    3,810 $    3,838 $   11,350 $   11,715

Provision for loan losses               154        195        421        527

Gain on sale of securities                -          -         75        296

Other noninterest income              1,723      1,198      4,446      3,039

Total noninterest expense             3,271      2,943      9,643      9,036

Income before taxes                   2,108      1,898      5,807      5,487

Net income                            1,398      1,316      3,914      3,738

Dividends on preferred stock            405        427      1,203      1,106

Accretion of preferred stock
 discount                                 -        210          -        252

Income available to common
 shareholders                           993        679      2,711      2,380

Basic earnings per common share  $     0.46 $     0.32 $     1.25 $     1.11

Diluted earnings per common
 share                           $     0.44 $     0.31 $     1.20 $     1.08

Dividends per common share       $     0.23 $     0.18 $     0.67 $     0.55



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

                                    September 30  December 31   September 30
                                        2012          2011          2011
                                   ------------- ------------- -------------
Total assets                       $     534,159 $     523,358 $     518,090

Loans receivable                         373,580       345,982       343,579

Allowance for loan losses                  3,729         3,299         3,216

Deposits                                 406,216       381,729       376,023

Borrowings                                54,000        70,019        70,038

Shareholders' equity                      66,543        64,615        64,586

Book value per common share        $       19.45 $       18.83 $       18.82

Per share data have been adjusted to reflect the 10% stock dividend, or
 196,819 shares, distributed on December 28, 2011.

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