of Commercial Loans

ELMIRA, N.Y., Dec. 14 /PRNewswire-FirstCall/ -- The Elmira Savings Bank, FSB (the "Bank") (Nasdaq: ESBK) announced the completion of the purchase of approximately $28 million of commercial loans from First Niagara Financial Group. This transaction was related to the four branch acquisition which closed on November 30, 2007.

The commercial loans had an average rate of approximately 7.6% and were purchased at a slight discount. The loans consisted primarily of commercial mortgages in Tompkins County.

"We are pleased to report the finalization of this phase of the transaction and look forward to bringing our service-oriented and customer-focused approach to our new customers in Tompkins and Cayuga Counties," said Michael P. Hosey, President and Chief Executive Officer.

Elmira Savings Bank, FSB with $442 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; and one office in Tioga County, PA.

Except for the historical information contained herein, the matters discussed in this news release are or contain forward-looking statements that involve certain risks and uncertainties, including the timely availability and acceptance of the Bank's products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Bank's publicly available regulatory reports.

SOURCE The Elmira Savings Bank, FSB

CONTACT: Thomas M. Carr, EVP & CFO of Elmira Savings Bank, FSB, +1-607-735-8660, tcarr@elmirasavingsbank.com -0- Dec/14/2007 20:37 GMT

Last Updated: December 14, 2007 15:37 EST