Elmira Savings Bank Receives Preliminary Approval for $14.1 Million of SBLF Capital

The Elmira Savings Bank, FSB

today announced that it has received preliminary approval to receive an investment of up to $14.1 million in the Bank's preferred stock from the United States Department of the Treasury under the Small Business Lending Fund (the "SBLF"). The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified community banks at favorable rates. The Bank intends to use up to $9.1 million in SBLF funds to redeem the shares of preferred stock issued by the Bank in 2008 to the Treasury Department under its Capital Purchase Program (TARP). Subject to review of the SBLF documentation by the Bank and final due diligence by the Treasury, the Bank expects to seek the full amount of the approved investment. Closing is expected to occur during August 2011.