ELMIRA, NY--(Marketwire - Oct 26, 2011) - Elmira Savings Bank, FSB (NASDAQ: [ ESBK ]) today announced net income for the nine months ended September 30, 2011 totaling $3,738,000 or $1.19 per diluted share, compared to the $3,607,000 of net income or $1.27 per diluted share reported for the same period in 2010. This represents a 4% or $131,000 increase in net income.

Net income for the three months ended September 30, 2011 totaled $1,316,000 or $.34 per diluted share compared to $1,295,000 or $.47 per diluted share for the same period in 2010. This represents a 2% or $21,000 increase in net income.

Net interest income was $11.7 million for the first nine months of 2011 compared to $11.1 million for the same period last year.

Total assets increased by $18.3 million from $499.8 million at December 31, 2010 to $518.1 million as of September 30, 2011. Total deposits were $376.0 million as of September 30, 2011 compared to $356.6 million as of December 31, 2010. This represents a $19.4 million or 5% increase. Total loans increased by $33.7 million or 11% from $309.9 million as of December 31, 2010 to $343.6 million as of September 30, 2011.

"During the first nine months of 2011, we have experienced loan growth above our expectations in all portfolios. Our net interest margin, asset quality, and efficiency all continue to be strong. The dividend yield on our common stock is approximately 5%," said Michael P. Hosey, President and CEO.

Hosey continued, "We are focusing our commercial lending efforts on lending to small businesses in an effort to reduce the dividend rate on the preferred shares issued to the Treasury Department during the third quarter through the Small Business Lending Fund."

Elmira Savings Bank, FSB with $518.1 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 cashless 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.