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May 20, 2020, 2:45 p.m. EDT

Elmira Savings Bank slashes dividend, but implied yield is still over 5%

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By Tomi Kilgore

Elmira Savings Bank /zigman2/quotes/207997716/composite ESBK +2.87% said Wednesday it was lowering its quarterly dividend by 35%, to 15 cents a share from a previous payout of 23 cents a share. The new dividend will be payable June 12 to shareholders of record on June 5. "We made a difficult decision to reduce our cash dividend for the current quarter due to the uncertainty of the economic recovery," said Chief Executive Thomas Carr. The Elmira, New York-based savings bank's stock rose 7.4% in afternoon trading. Based on current stock prices, the new annual dividend rate would imply a dividend yield of 5.16%, compared with the yield for the SPDR S&P Regional Banking ETF /zigman2/quotes/200108291/composite KRE -0.74% of 3.86% and the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% of 1.94%. The stock has lost 23.0% year to date, while the regional bank ETF has shed 39.2% and the S&P 500 has lost 8.1%.

/zigman2/quotes/207997716/composite
US : U.S.: Nasdaq
$ 10.75
+0.30 +2.87%
Volume: 4,550
Sept. 18, 2020 4:00p
P/E Ratio
10.00
Dividend Yield
5.58%
Market Cap
$37.44 million
Rev. per Employee
$193,909
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/zigman2/quotes/200108291/composite
US : U.S.: NYSE Arca
$ 37.60
-0.28 -0.74%
Volume: 8.62M
Sept. 18, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
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