Elmira Savings Bank Posts Earnings

Net income for the three months ended September 30, 2008 totaled $727,000 or $.26 per diluted share compared to $707,000 or $.44 per diluted share for the same period in 2007.

Total assets increased by $72.5 million from September 30, 2007 to $462.6 million at September 30, 2008. Total assets increased by $8.9 million or 2% from December 31, 2007 to September 30, 2008. Total loans increased by $65.2 million from September 30, 2007 to $324.0 million on September 30, 2008. The growth in loans was focused on mortgage loans which increased by $45.3 million. Total loans increased by $24.1 million or 8% from December 31, 2007 to September 30, 2008. Deposits increased by $56.0 million or 20% from September 30, 2007 to $341.2 million on September 30, 2008. Total deposits decreased by $15.2 million or 4% from December 31, 2007 to September 30 2008. Included in the above totals are $36 million of loans and $78.9 million of deposits acquired in the fourth quarter of 2007 through the acquisition of branches.

"We are pleased to report another quarter of financial progress. We have completed the implementation of our $1.1 million pre-tax, annual cost reduction and revenue enhancement strategies," said Michael P. Hosey, Chief Executive Officer and President of Elmira Savings Bank. Hosey continued, "The impact of these strategies has affected our third quarter results modestly and will fully impact our earnings during the fourth quarter and into future periods. In addition, we have also worked diligently on enhancing the Bank's net interest margin, which was 2.90% in the first quarter of 2008, and has improved to approximately 3.47% for the third quarter of 2008.

"During the third quarter we announced a definitive agreement to sell ourMansfield, PA, office, which has approximately $18 million in deposits, to First Citizens Bank ofMansfield, PA, for a weighted average premium on deposits of 10%. We are undertaking this transaction to allow us to focus on our centralNew York markets."

"We would like to make clear to our shareholders and customers that we do not have a subprime mortgage product and have not invested in privately issued mortgage-backed securities or mortgage-backed securities backed by subprime mortgages. Additionally, we have not invested in FNMA or FHLMC stocks or corporate bonds. Due to this conservative investment philosophy, we have so far avoided the issues many other banks have faced with these types of investments. We are a well-capitalized institution committed to improving our earnings for our shareholders and remaining a local independent bank for our customers and employees."

Elmira Savings Bank, FSB with $462.6 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a federally chartered Bank with five offices inChemung County, NY; three offices and a loan center inTompkins County, NY; one office inSteuben County, NY; one office inCayuga County, NY; and one office inTioga County, PA.

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,
                                2008          2007         2008          2007

    Net interest income      $ 3,616       $ 2,677      $10,012       $ 7,767
    Provision for loan
     losses                      245           180          419           240
    Gain on sale of
     securities
     available-for-sale           17            44          379            61
    Other noninterest income   1,044           700        2,621         1,725
    Total noninterest expense  3,384         2,260       10,000         6,615
    Income before taxes        1,048           981        2,593         2,698
    Net income                   727           707        1,864         1,948
    Dividend on preferred
     stock                       230             0          685             0
    Net income available to
     common shareholders         497           707        1,179         1,948
    Basic earnings per common
     share (1)               $  0.26       $  0.44      $  0.62       $  1.22
    Diluted earnings per
     common share (1)        $  0.26       $  0.44      $  0.61       $  1.21
    Dividends per common
     share (1)               $  0.20       $  0.20      $  0.60       $  0.55



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

                                  September 30   December 31    September 30
                                      2008           2007           2007
    Total assets                    $462,562      $453,687       $390,020
    Loans, net                       324,020       299,887        258,853
    Allowance for Loan Losses          2,662         2,478          1,786
    Deposits                         341,212       356,424        285,248
    Borrowings                        76,119        52,776         77,494
    Shareholders' equity              40,369        41,019         25,364
    Book value per common share (1) $  15.99      $  16.28       $  15.77

    (1) Per share data have been adjusted to reflect the 10%
    stock dividend, or 174,220 shares, distributed on June 27, 2008.

SOURCE Elmira Savings Bank FSB

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Copyright © 2008, NewsBlaze, Daily News

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