Elmira Savings Bank Announces Repurchase of Warrant

ELMIRA, NY--(Marketwired - May 7, 2015) -  Elmira Savings Bank (NASDAQ: ESBK) announced today that, for a purchase price of $1.486 million, it has completed the repurchase of a warrant that had been issued to the United States Treasury Department ("Treasury"). The warrant was issued on December 19, 2008, as part of the Bank's participation in the Treasury's Capital Purchase Program ("CPP") and entitled the warrant holder to purchase 151,029 shares of Elmira Savings Bank common stock at an exercise price of $9.028 per share. The purchase price was based on the fair market value of the warrant as agreed upon by both parties.

The Bank had previously redeemed all of the preferred stock that had been issued to the Treasury under both the CPP and the Small Business Lending Fund Program ("SBLF"). With the repurchase of the warrant, the Bank has redeemed all of the securities it had issued to the Treasury in connection with its participation in both the CPP and SBLF.

"We are pleased to have taken this last step to completely conclude Elmira Savings Bank's participation in the CPP," said Thomas M. Carr, President and Chief Executive Officer.

Elmira Savings Bank, with $562.2 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; two offices in Steuben County, NY; one office in Cayuga County, NY; one office in Schuyler County; a loan center in Cortland County, NY; and a loan center in Broome 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.