ELMIRA, N.Y., July 29, 2016 (GLOBE NEWSWIRE) — Chemung Financial Corporation (the “Corporation”) (Nasdaq:CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported revised net income for the second quarter of 2016 of $1.6 million, or $0.34 per share, compared to $2.6 million, or $0.55 per share, for the second quarter of 2015. The revised net income for the second quarter of 2016 includes the establishment of a $1.2 million legal reserve relating to Notice of Entry of a decision and order of the New York Supreme Court for the County of Tompkins in connection with a lease dispute, subsequent to the original filing of the Corporation’s earnings release on July 21, 2016. Please refer to page four of this earnings release under “Other Items” for further discussion of the Court’s decision, which was also disclosed in a Form 8-K filed with the Securities and Exchange Commission on July 28, 2016.
Ronald M. Bentley, Chemung Financial Corporation CEO, stated:
“We continue to grow our municipal deposit base, which was the primary contributor for the $67.6 million increase in deposits since December 31, 2015. Our deposit growth has allowed us to continue funding higher yielding commercial loans and indirect auto loans, and grow our net interest income. Finally, we created a new captive insurance subsidiary during the second quarter of 2016, which will allow us to strengthen our risk management program, along with providing a potential net tax benefit starting in 2017.”
Second Quarter Highlights1
- Loans, net of deferred fees increased $32.5 million, or 2.8%
- Commercial loans increased $43.2 million, or 6.2%
- Deposits increased $67.6 million, or 4.8%
- Net interest income increased $0.3 million, or 2.5%
- Dividends declared during the quarter were $0.26
A more detailed summary of financial performance follows.
| 1 Balance sheet comparisons are calculated for June 30, 2016 versus December 31, 2015. Income statement comparisons are calculated for the second quarter of 2016 versus prior-year second quarter. |
2nd Quarter 2016 vs 1st Quarter 2016
Net Interest Income:
Net interest income for the current quarter totaled $13.0 million, consistent with the prior quarter. Interest and fees from loans and interest-bearing deposits both increased $0.1 million, while interest and dividend income from securities decreased $0.2 million when compared to the prior quarter. Fully taxable equivalent net interest margin was 3.36%, compared with 3.47% for the prior quarter. Average interest-earning assets increased $45.7 million compared to the prior quarter. The yield on interest-earning assets decreased twelve basis points, while the cost of interest-bearing liabilities was flat compared to the prior quarter. The yield on interest-earning assets decreased due to an increase of $55.3 million in the average interest-bearing deposits in other financial institutions balance, compared to the prior quarter. These deposits earned the federal funds rate of approximately 50 basis points during the current quarter.
Non-Interest Income:
Non-interest income for the quarter was $5.2 million compared with $5.6 million for the prior quarter, a decrease of $0.4 million, or 6.9%. The decrease was due primarily to the $0.9 million net gain on security transactions from the sale of $14.5 million in U.S. Treasuries during the prior quarter. Offsetting the net gain on security transactions were increases of $0.2 million in wealth management group fee income, $0.2 million in service charges on deposit accounts, and $0.1 million in other non-interest income. The increase in wealth management group fee income can be attributed to tax services performed during the quarter. The increase in service charges on deposit accounts can be attributed to seasonality.
Non-Interest Expense:
Non-interest expense for the quarter was $15.6 million compared with $14.0 million for the prior quarter, an increase of $1.6 million, or 11.2%. The increase was due primarily to increases of $0.2 million in professional services, $0.1 million in marketing and advertising expenses, $0.1 million in loan expense, and $1.2 million in other non-interest expense. The increase in professional services can be attributed to start-up costs associated with the establishment of Chemung Risk Management, Inc. (the “Captive”), a captive insurance subsidiary, which was completed in May 2016. The increase in marketing and advertising expense was due to seasonality, as the Bank sponsors the majority of its events during the spring and summer. The increase in loan expense can be attributed to an increase in commercial loan volume. The increase in other non-interest expense can be attributed to the establishment of a $1.2 million legal reserve. Please refer to page four of this earnings release under “Other Items” for further discussion of the establishment of the legal reserve.
2nd Quarter 2016 vs 2nd Quarter 2015
Net Interest Income:
Net interest income for the current quarter totaled $13.0 million compared with $12.6 million for the same period in the prior year, an increase of $0.4 million, or 2.5%. Interest and fees from loans increased $0.2 million, while interest and dividend income from securities increased $0.1 million when compared to the same period in the prior year. Fully taxable equivalent net interest margin was 3.36%, compared with 3.50% for the same period in the prior year. Average interest-earning assets increased $110.5 million compared to the same period in the prior year. The yield on interest-earning assets decreased 14 basis points, while the cost of interest-bearing liabilities increased one basis point compared to the same period in the prior year. The yield on interest-earning assets decreased due to an increase of $33.8 million in the average interest-bearing deposits in other financial institutions balance, compared to the same period in the prior year. These deposits earned the federal funds rate of approximately 50 basis points during the current quarter.
Non-Interest Income:
Non-interest income for the quarter was $5.2 million compared with $5.3 million for the same period in the prior year, a decrease of $0.1 million, or 2.1%. The decrease was due primarily to the $0.3 million net gain on security transactions from the sale of $48.3 million in U.S. government sponsored agencies and Treasury securities during 2015. Offsetting the net gain on security transactions were increases of $0.1 million in service charges on deposit accounts and interchange revenue from debit card transactions. The increase in service charges on deposit accounts can be attributed to seasonality. The increase in interchange revenue from debit card transactions can be attributed to an increase in debit card activity when compared to the same period in the prior year.
Non-Interest Expense:
Non-interest expense for the quarter was $15.6 million compared with $13.8 million for the same period in the prior year, an increase of $1.8 million, or 12.6%. The increase was due primarily to increases of $0.1 million in pension and employee benefits, $0.1 million in net occupancy expenses, $0.2 million in data processing, $0.2 million in professional services, and $1.3 million in other non-interest expense, offset by a $0.2 million decrease in other real estate owned expense. The increase in net occupancy expenses can be attributed to one-time depreciation expense related to the closure of the branch office at 202 East State Street in Ithaca, NY at the end of May 2016. The increase in professional services can be attributed to start-up costs associated with the establishment of the Captive, which was completed in May 2016. The increase in other non-interest expense can be attributed to the establishment of a $1.2 million legal reserve. Please refer to page four of this earnings release under “Other Items” for further discussion of the establishment of the legal reserve. The decrease in other real estate owned can be attributed to the sale of properties in 2015.
Asset Quality
Non-performing loans totaled $12.4 million at June 30, 2016, or 1.03% of total loans, compared with $12.2 million at December 31, 2015, or 1.05% of total loans. The increase in non-performing loans at June 30, 2016 was primarily in the residential mortgage and consumer loan segments of the loan portfolio. Non-performing assets, which are comprised of non-performing loans and other real estate owned, were $12.8 million, or 0.76% of total assets, at June 30, 2016, compared with $13.8 million, or 0.85% of total assets, at December 31, 2015.
Management performs an ongoing assessment of the adequacy of the allowance for loan losses based upon a number of factors including an analysis of historical loss factors, collateral evaluations, recent charge-off experience, credit quality of the loan portfolio, current economic conditions and loan growth. Based on this analysis, the provision for loan losses for the second quarter of 2016 and 2015 were $0.4 million and $0.3 million, respectively. Net charge-offs for the second quarter of 2016 were $0.2 million compared with $0.1 million for the same period in the prior year.
At June 30, 2016 the allowance for loan losses was $14.7 million, compared with $14.3 million at December 31, 2015. The allowance for loan losses was 118.0% of non-performing loans at June 30, 2016, compared with 116.6% at December 31, 2015. The ratio of the allowance for loan losses to total loans was 1.22% at June 30, 2016, level with December 31, 2015.
Balance Sheet Activity
Assets totaled $1.684 billion at June 30, 2016 compared with $1.620 billion at December 31, 2015, an increase of $64.0 million, or 4.0%. The growth was due primarily to increases of $81.2 million in cash and cash equivalents and $32.5 million in the loan portfolio, partially offset by a $44.5 million decrease in securities available for sale.
The increase in cash and cash equivalents can be attributed to the sale of available for sale securities and an increase in deposits, offset by an increase in total loans and the pay down of FHLB overnight advances.
The increase in total loans can be attributed to increases of $46.1 million in commercial mortgages and $0.4 million in residential mortgages, offset by decreases in indirect consumer of $6.3 million, other consumer of $4.8 million, and commercial and agriculture of $2.9 million.
The decrease in securities available for sale can be mostly attributed to the sale of $14.5 million in U.S. Treasuries and $35.2 million in maturities of agencies and pay-downs on mortgage-backed securities.
Deposits totaled $1.468 billion at June 30, 2016 compared with $1.400 billion at December 31, 2015, an increase of $67.6 million, or 4.8%. The growth was mostly attributable to increases of $64.4 million in money market accounts, $8.3 million in savings deposits, and $6.6 million in non-interest bearing demand deposits. Partially offsetting the increases noted above were decreases of $7.4 million in time deposits and $4.3 million in interest-bearing demand deposits. The changes in money market accounts and demand deposits can be attributed to the seasonal inflow of deposits from municipal clients.
Total equity was $143.4 million at June 30, 2016 compared with $137.2 million at December 31, 2015, an increase of $6.2 million, or 4.5%. The increase was primarily due to earnings of $4.3 million, a reduction of $0.8 million in treasury stock, and a decrease of $3.4 million in accumulated other comprehensive loss, offset by $2.4 million in dividends declared during the year.
The total equity to total assets ratio was 8.52% at June 30, 2016 compared with 8.47% at December 31, 2015. The tangible equity to tangible assets ratio was 7.12% at June 30, 2016 compared with 6.99% at December 31, 2015. Book value per share increased to $30.12 at June 30, 2016 from $28.96 at December 31, 2015. As of June 30, 2016, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under regulatory capital guidelines and the Corporation met capital requirements under regulatory guidelines.
Other Items
The market value of total assets under management or administration in our Wealth Management Group was $1.689 billion at June 30, 2016, including $305.4 million of assets under management or administration for the Corporation, compared with $1.856 billion at December 31, 2015, including $304.1 million of assets held under management or administration for the Corporation, a decrease of $166.7 million, or 9.0%. The decrease can be attributed to the loss of one large non-profit customer during the first quarter of 2016, along with a decline in the market value of assets.
As previously disclosed on June 2, 2016, the Corporation received approval from the State of Nevada for the creation of a new captive insurance subsidiary, the Captive, on May 31, 2016. The purpose of the Captive is to insure gaps in commercial coverage and uninsured exposures in the Corporation’s current insurance coverages and allow the Corporation to strengthen its overall risk management program. The Corporation recognized approximately $170 thousand in one-time expenses associated with the feasibility and implementation of the Captive during the first half of 2016 and will have annual costs of approximately $90 thousand associated with the on-going operations of the Captive. Beginning in fiscal year 2017, the Corporation expects to receive a potential net benefit of approximately $370 thousand associated with the insurance premium exclusion, for income tax purposes, provided to captive insurance companies. This net benefit will be reduced by claims submitted to the Captive.
As previously disclosed on July 28, 2016, the Corporation on July 25, 2016, received Notice of Entry of the decision and order of the New York Supreme Court for the County of Tompkins in the matter of Fane v. Chemung Canal Trust Company, involving claims by the owner of the leased premises at 202 East State Street, Ithaca, New York against Chemung Canal Trust Company, the bank subsidiary of the Corporation. The Court granted, in part, partial summary judgment in favor of the plaintiff – on the issue of liability only- for anticipatory breach and breach of contract. The fraud claims were dismissed, and summary judgment was denied on the plaintiff’s trespass claims. The Court set the matter down for an inquest on damages at a later date, with the original claim by the plaintiff seeking $4.0 million in damages. While the Corporation’s attorneys are assessing the merits of an appeal based on the information contained in the Court’s ruling, the Corporation established a legal reserve of $1.2 million in connection with this case as of June 30, 2016.
About Chemung Financial Corporation
Chemung Financial Corporation is a $1.7 billion financial services holding company headquartered in Elmira, New York and operates 33 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full-service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services and insurance, and Chemung Risk Management, Inc., a captive insurance company based in the State of Nevada.
This press release may be found at: www.chemungcanal.com under Investor Relations.
| Chemung Financial Corporation | ||||||||||||||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
| (in thousands) | 2016 | 2016 | 2015 | 2015 | 2015 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from financial institutions | $ | 27,233 | $ | 26,471 | $ | 24,886 | $ | 30,800 | $ | 28,014 | ||||||||||
| Interest-bearing deposits in other financial institutions | 80,121 | 29,388 | 1,299 | 44,449 | 1,650 | |||||||||||||||
| Total cash and cash equivalents | 107,354 | 55,859 | 26,185 | 75,249 | 29,664 | |||||||||||||||
| Trading assets, at fair value | 767 | 734 | 701 | 636 | 635 | |||||||||||||||
| Securities available for sale | 300,277 | 324,484 | 344,820 | 335,571 | 290,571 | |||||||||||||||
| Securities held to maturity | 3,518 | 4,577 | 4,566 | 4,604 | 6,045 | |||||||||||||||
| FHLB and FRB stocks, at cost | 4,491 | 4,179 | 4,797 | 4,171 | 4,873 | |||||||||||||||
| Total investment securities | 308,286 | 333,240 | 354,183 | 344,346 | 301,489 | |||||||||||||||
| Commercial | 742,874 | 725,596 | 699,711 | 664,505 | 665,303 | |||||||||||||||
| Mortgage | 196,200 | 196,751 | 195,778 | 197,506 | 198,469 | |||||||||||||||
| Consumer | 262,082 | 264,546 | 273,144 | 279,926 | 286,634 | |||||||||||||||
| Loans, net of deferred loan fees | 1,201,156 | 1,186,893 | 1,168,633 | 1,141,937 | 1,150,406 | |||||||||||||||
| Allowance for loan losses | (14,668 | ) | (14,527 | ) | (14,260 | ) | (14,022 | ) | (14,028 | ) | ||||||||||
| Loans, net | 1,186,488 | 1,172,366 | 1,154,373 | 1,127,915 | 1,136,378 | |||||||||||||||
| Loans held for sale | 809 | 593 | 1,076 | 316 | 668 | |||||||||||||||
| Premises and equipment, net | 29,706 | 28,620 | 29,397 | 30,023 | 30,874 | |||||||||||||||
| Goodwill | 21,824 | 21,824 | 21,824 | 21,824 | 21,824 | |||||||||||||||
| Other intangible assets, net | 3,428 | 3,673 | 3,931 | 4,201 | 4,478 | |||||||||||||||
| Accrued interest receivable and other assets | 25,270 | 26,317 | 28,294 | 27,129 | 27,623 | |||||||||||||||
| Total assets | $ | 1,683,932 | $ | 1,643,226 | $ | 1,619,964 | $ | 1,631,639 | $ | 1,553,633 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 408,846 | $ | 393,121 | $ | 402,236 | $ | 392,734 | $ | 385,467 | ||||||||||
| Interest-bearing demand deposits | 126,305 | 141,457 | 130,573 | 144,097 | 118,988 | |||||||||||||||
| Money market accounts | 562,028 | 527,578 | 497,658 | 503,411 | 447,360 | |||||||||||||||
| Savings deposits | 212,086 | 208,555 | 203,749 | 196,994 | 199,437 | |||||||||||||||
| Time deposits | 158,655 | 163,541 | 166,079 | 173,205 | 180,725 | |||||||||||||||
| Total deposits | 1,467,920 | 1,434,252 | 1,400,295 | 1,410,441 | 1,331,977 | |||||||||||||||
| FHLB overnight advances | – | – | 13,900 | – | 15,600 | |||||||||||||||
| Securities sold under agreements to repurchase | 28,778 | 28,825 | 28,453 | 30,358 | 31,882 | |||||||||||||||
| FHLB advances and other debt | 23,970 | 22,012 | 22,076 | 22,140 | 22,201 | |||||||||||||||
| Accrued interest payable and other liabilities | 19,855 | 17,091 | 17,998 | 29,985 | 15,453 | |||||||||||||||
| Total liabilities | 1,540,523 | 1,502,180 | 1,482,722 | 1,492,924 | 1,417,113 | |||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
| Common stock | 53 | 53 | 53 | 53 | 53 | |||||||||||||||
| Additional-paid-in capital | 45,639 | 45,652 | 45,537 | 45,545 | 45,468 | |||||||||||||||
| Retained earnings | 120,860 | 120,460 | 118,973 | 118,057 | 116,817 | |||||||||||||||
| Treasury stock, at cost | (15,608 | ) | (15,781 | ) | (16,379 | ) | (16,654 | ) | (16,704 | ) | ||||||||||
| Accumulated other comprehensive income (loss) | (7,535 | ) | (9,338 | ) | (10,942 | ) | (8,286 | ) | (9,114 | ) | ||||||||||
| Total shareholders’ equity | 143,409 | 141,046 | 137,242 | 138,715 | 136,520 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,683,932 | $ | 1,643,226 | $ | 1,619,964 | $ | 1,631,639 | $ | 1,553,633 | ||||||||||
| Period-end shares outstanding | 4,762 | 4,759 | 4,739 | 4,724 | 4,720 | |||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | Percent | June 30, | Percent | |||||||||||||||||||||
| (in thousands, except per share data) | 2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||||||
| Loans, including fees | $ | 12,321 | $ | 12,096 | 1.9 | $ | 24,567 | $ | 23,999 | 2.4 | ||||||||||||||
| Taxable securities | 1,281 | 1,164 | 10.1 | 2,718 | 2,253 | 20.6 | ||||||||||||||||||
| Tax exempt securities | 240 | 239 | 0.4 | 494 | 458 | 7.9 | ||||||||||||||||||
| Interest-bearing deposits | 83 | 20 | 315.0 | 95 | 43 | 120.9 | ||||||||||||||||||
| Total interest and dividend income | 13,925 | 13,519 | 3.0 | 27,874 | 26,753 | 4.2 | ||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Deposits | 539 | 492 | 9.6 | 1,046 | 978 | 7.0 | ||||||||||||||||||
| Securities sold under agreements to repurchase | 211 | 212 | (0.5 | ) | 422 | 421 | 0.2 | |||||||||||||||||
| Borrowed funds | 207 | 168 | 23.2 | 413 | 365 | 13.2 | ||||||||||||||||||
| Total interest expense | 957 | 872 | 9.7 | 1,881 | 1,764 | 6.6 | ||||||||||||||||||
| Net interest income | 12,968 | 12,647 | 2.5 | 25,993 | 24,989 | 4.0 | ||||||||||||||||||
| Provision for loan losses | 388 | 259 | 49.8 | 983 | 649 | 51.5 | ||||||||||||||||||
| Net interest income after provision for loan losses | 12,580 | 12,388 | 1.5 | 25,010 | 24,340 | 2.8 | ||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||
| Wealth management group fee income | 2,201 | 2,198 | 0.1 | 4,213 | 4,324 | (2.6 | ) | |||||||||||||||||
| Service charges on deposit accounts | 1,285 | 1,224 | 5.0 | 2,420 | 2,362 | 2.5 | ||||||||||||||||||
| Interchange revenue from debit card transactions | 939 | 859 | 9.3 | 1,832 | 1,668 | 9.8 | ||||||||||||||||||
| Net gains on securities transactions | – | 252 | N/M | 908 | 302 | 200.7 | ||||||||||||||||||
| Net gains on sales of loans held for sale | 97 | 98 | (1.0 | ) | 158 | 150 | 5.3 | |||||||||||||||||
| Net gains (losses) on sales of other real estate owned | (11 | ) | 42 | N/M | (16 | ) | 120 | N/M | ||||||||||||||||
| Income from bank owned life insurance | 18 | 19 | (5.3 | ) | 36 | 37 | (2.7 | ) | ||||||||||||||||
| Other | 687 | 634 | 8.4 | 1,266 | 1,549 | (18.3 | ) | |||||||||||||||||
| Total non-interest income | 5,216 | 5,326 | (2.1 | ) | 10,817 | 10,512 | 2.9 | |||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||
| Salaries and wages | 5,182 | 5,188 | (0.1 | ) | 10,365 | 10,288 | 0.7 | |||||||||||||||||
| Pension and other employee benefits | 1,646 | 1,557 | 5.7 | 3,321 | 3,286 | 1.1 | ||||||||||||||||||
| Net occupancy | 1,878 | 1,757 | 6.9 | 3,784 | 3,607 | 4.9 | ||||||||||||||||||
| Furniture and equipment | 829 | 789 | 5.1 | 1,601 | 1,522 | 5.2 | ||||||||||||||||||
| Data processing | 1,720 | 1,552 | 10.8 | 3,434 | 3,113 | 10.3 | ||||||||||||||||||
| Professional services | 575 | 420 | 36.9 | 916 | 689 | 32.9 | ||||||||||||||||||
| Amortization of intangible assets | 245 | 285 | (14.0 | ) | 503 | 589 | (14.6 | ) | ||||||||||||||||
| Marketing and advertising | 325 | 271 | 19.9 | 547 | 506 | 8.1 | ||||||||||||||||||
| Other real estate owned expense | 57 | 224 | (74.6 | ) | 109 | 308 | (64.6 | ) | ||||||||||||||||
| FDIC insurance | 277 | 280 | (1.1 | ) | 571 | 566 | 0.9 | |||||||||||||||||
| Loan expense | 188 | 175 | 7.4 | 300 | 315 | (4.8 | ) | |||||||||||||||||
| Other | 2,648 | 1,325 | 99.8 | 4,127 | 2,770 | 49.0 | ||||||||||||||||||
| Total non-interest expense | 15,570 | 13,823 | 12.6 | 29,578 | 27,559 | 7.3 | ||||||||||||||||||
| Income before income tax expense | 2,226 | 3,891 | (42.8 | ) | 6,249 | 7,293 | (14.3 | ) | ||||||||||||||||
| Income tax expense | 605 | 1,314 | (54.0 | ) | 1,921 | 2,440 | (21.3 | ) | ||||||||||||||||
| Net income | $ | 1,621 | $ | 2,577 | (37.1 | ) | $ | 4,328 | $ | 4,853 | (10.8 | ) | ||||||||||||
| Basic and diluted earnings per share | $ | 0.34 | $ | 0.55 | $ | 0.91 | $ | 1.03 | ||||||||||||||||
| Cash dividends declared per share | 0.26 | 0.26 | 0.52 | 0.52 | ||||||||||||||||||||
| Average basic and diluted shares outstanding | 4,760 | 4,717 | 4,754 | 4,712 | ||||||||||||||||||||
| N/M – Not meaningful | ||||||||||||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||||||
| Consolidated Financial Highlights (Unaudited) | ||||||||||||||||||||||||||||
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (in thousands, per share data) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
| Interest income | $ | 13,925 | $ | 13,949 | $ | 13,896 | $ | 13,595 | $ | 13,519 | $ | 27,874 | $ | 26,753 | ||||||||||||||
| Interest expense | 957 | 924 | 934 | 904 | 872 | 1,881 | 1,764 | |||||||||||||||||||||
| Net interest income | 12,968 | 13,025 | 12,962 | 12,691 | 12,647 | 25,993 | 24,989 | |||||||||||||||||||||
| Provision for loan losses | 388 | 595 | 615 | 307 | 259 | 983 | 649 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 12,580 | 12,430 | 12,347 | 12,384 | 12,388 | 25,010 | 24,340 | |||||||||||||||||||||
| Non-interest income | 5,216 | 5,601 | 5,023 | 4,912 | 5,326 | 10,817 | 10,512 | |||||||||||||||||||||
| Non-interest expense | 15,570 | 14,008 | 14,234 | 13,634 | 13,823 | 29,578 | 27,559 | |||||||||||||||||||||
| Income before income tax expense | 2,226 | 4,023 | 3,136 | 3,662 | 3,891 | 6,249 | 7,293 | |||||||||||||||||||||
| Income tax expense | 605 | 1,316 | 1,007 | 1,211 | 1,314 | 1,921 | 2,440 | |||||||||||||||||||||
| Net income | $ | 1,621 | $ | 2,707 | $ | 2,129 | $ | 2,451 | $ | 2,577 | $ | 4,328 | $ | 4,853 | ||||||||||||||
| Basic and diluted earnings per share | $ | 0.34 | $ | 0.57 | $ | 0.45 | $ | 0.52 | $ | 0.55 | $ | 0.91 | $ | 1.03 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,760 | 4,750 | 4,731 | 4,722 | 4,717 | 4,754 | 4,712 | |||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
| Return on average assets | 0.39 | % | 0.67 | % | 0.52 | % | 0.62 | % | 0.66 | % | 0.53 | % | 0.63 | % | ||||||||||||||
| Return on average equity | 4.57 | % | 7.73 | % | 6.05 | % | 7.05 | % | 7.52 | % | 6.14 | % | 7.16 | % | ||||||||||||||
| Return on average tangible equity (a) | 5.55 | % | 9.45 | % | 7.42 | % | 8.71 | % | 9.32 | % | 7.48 | % | 8.89 | % | ||||||||||||||
| Efficiency ratio (b) | 77.00 | % | 76.89 | % | 77.35 | % | 75.25 | % | 75.83 | % | 76.95 | % | 76.04 | % | ||||||||||||||
| Non-interest expense to average assets (c) | 3.75 | % | 3.48 | % | 3.49 | % | 3.44 | % | 3.55 | % | 3.61 | % | 3.56 | % | ||||||||||||||
| Loans to deposits | 81.83 | % | 82.75 | % | 83.46 | % | 80.96 | % | 86.37 | % | 81.83 | % | 86.37 | % | ||||||||||||||
| YIELDS / RATES – Fully Taxable Equivalent | ||||||||||||||||||||||||||||
| Yield on loans | 4.17 | % | 4.21 | % | 4.20 | % | 4.22 | % | 4.26 | % | 4.19 | % | 4.27 | % | ||||||||||||||
| Yield on investments | 1.81 | % | 2.07 | % | 1.98 | % | 1.89 | % | 1.91 | % | 1.94 | % | 1.87 | % | ||||||||||||||
| Yield on interest-earning assets | 3.60 | % | 3.72 | % | 3.66 | % | 3.70 | % | 3.74 | % | 3.66 | % | 3.74 | % | ||||||||||||||
| Cost of interest-bearing deposits | 0.21 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.21 | % | 0.20 | % | 0.21 | % | ||||||||||||||
| Cost of borrowings | 3.16 | % | 2.66 | % | 2.99 | % | 3.03 | % | 2.64 | % | 2.89 | % | 2.69 | % | ||||||||||||||
| Cost of interest-bearing liabilities | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.35 | % | 0.35 | % | ||||||||||||||
| Interest rate spread | 3.25 | % | 3.37 | % | 3.31 | % | 3.35 | % | 3.40 | % | 3.31 | % | 3.39 | % | ||||||||||||||
| Net interest margin, fully taxable equivalent | 3.36 | % | 3.47 | % | 3.42 | % | 3.45 | % | 3.50 | % | 3.41 | % | 3.50 | % | ||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Total equity to total assets at end of period | 8.52 | % | 8.58 | % | 8.47 | % | 8.50 | % | 8.79 | % | 8.52 | % | 8.79 | % | ||||||||||||||
| Tangible equity to tangible assets at end of period (a) | 7.12 | % | 7.14 | % | 6.99 | % | 7.02 | % | 7.22 | % | 7.12 | % | 7.22 | % | ||||||||||||||
| Book value per share | $ | 30.12 | $ | 29.64 | $ | 28.96 | $ | 29.36 | $ | 28.92 | $ | 30.12 | $ | 28.92 | ||||||||||||||
| Tangible book value per share | 24.81 | 24.28 | 23.53 | 23.85 | 23.35 | 24.81 | 23.35 | |||||||||||||||||||||
| Period-end market value per share | 29.35 | 26.35 | 27.50 | 28.03 | 26.48 | 29.35 | 26.48 | |||||||||||||||||||||
| Dividends declared per share | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.52 | 0.52 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Loans (d) | $ | 1,192,786 | $ | 1,175,051 | $ | 1,151,469 | $ | 1,142,402 | $ | 1,141,412 | $ | 1,183,919 | $ | 1,136,967 | ||||||||||||||
| Earning assets | 1,573,306 | 1,527,656 | 1,522,176 | 1,474,098 | 1,462,842 | 1,550,481 | 1,456,580 | |||||||||||||||||||||
| Total assets | 1,669,654 | 1,620,547 | 1,617,322 | 1,570,818 | 1,563,346 | 1,647,121 | 1,561,056 | |||||||||||||||||||||
| Deposits | 1,457,173 | 1,404,487 | 1,410,017 | 1,367,853 | 1,353,895 | 1,430,840 | 1,346,452 | |||||||||||||||||||||
| Total equity | 142,746 | 140,864 | 139,697 | 137,855 | 137,386 | 141,795 | 136,684 | |||||||||||||||||||||
| Tangible equity (a) | 117,374 | 115,240 | 113,812 | 111,693 | 110,945 | 116,297 | 110,087 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Net charge-offs | $ | 247 | $ | 328 | $ | 377 | $ | 313 | $ | 123 | $ | 575 | $ | 307 | ||||||||||||||
| Non-performing loans (e) | 12,429 | 12,774 | 12,232 | 12,368 | 12,862 | 12,429 | 12,862 | |||||||||||||||||||||
| Non-performing assets (f) | 12,822 | 14,416 | 13,762 | 14,744 | 15,238 | 12,822 | 15,238 | |||||||||||||||||||||
| Allowance for loan losses | 14,668 | 14,527 | 14,260 | 14,022 | 14,028 | 14,668 | 14,028 | |||||||||||||||||||||
| Annualized net charge-offs to average loans | 0.08 | % | 0.11 | % | 0.13 | % | 0.11 | % | 0.04 | % | 0.10 | % | 0.05 | % | ||||||||||||||
| Non-performing loans to total loans | 1.03 | % | 1.08 | % | 1.05 | % | 1.08 | % | 1.12 | % | 1.03 | % | 1.12 | % | ||||||||||||||
| Non-performing assets to total assets | 0.76 | % | 0.88 | % | 0.85 | % | 0.90 | % | 0.98 | % | 0.76 | % | 0.98 | % | ||||||||||||||
| Allowance for loan losses to total loans | 1.22 | % | 1.22 | % | 1.22 | % | 1.23 | % | 1.22 | % | 1.22 | % | 1.22 | % | ||||||||||||||
| Allowance for loan losses to non-performing loans | 118.01 | % | 113.72 | % | 116.58 | % | 113.37 | % | 109.07 | % | 118.01 | % | 109.07 | % | ||||||||||||||
| (a) See the GAAP to Non-GAAP reconciliations. | ||||||||||||||||||||||||||||
| (b) Efficiency ratio is non-interest expense less merger and acquisition expenses less amortization of intangible assets less legal reserve divided by the total of fully taxable equivalent net interest income plus non-interest income less net gains on securities transactions less gain from bargain purchase less gain on liquidation of trust preferred securities. | ||||||||||||||||||||||||||||
| (c) For the non-interest expense to average assets ratio, non-interest expense does not include legal settlement expense. | ||||||||||||||||||||||||||||
| (d) Loans include loans held for sale. Loans do not reflect the allowance for loan losses. | ||||||||||||||||||||||||||||
| (e) Non-performing loans include non-accrual loans only. | ||||||||||||||||||||||||||||
| (f) Non-performing assets include non-performing loans plus other real estate owned. | ||||||||||||||||||||||||||||
Chemung Financial Corporation
GAAP to Non-GAAP Reconciliations (Unaudited)
The Corporation prepares its Consolidated Financial Statements in accordance with GAAP; these financial statements appear on pages 5-6 of this earnings release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.
In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of its competitors. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute “non-GAAP financial measures” within the meaning of the SEC’s new rules, although we are unable to state with certainty that the SEC would so regard them.
Fully Taxable Equivalent Net Interest Income, Net Interest Margin, and Efficiency Ratio
Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution’s net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution’s net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices.
The efficiency ratio is a non-GAAP financial measures which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| NET INTEREST MARGIN – FULLY TAXABLE EQUIVALENT | ||||||||||||||||||||||||||||
| AND EFFICIENCY RATIO | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 12,968 | $ | 13,025 | $ | 12,962 | $ | 12,691 | $ | 12,647 | $ | 25,993 | $ | 24,989 | ||||||||||||||
| Fully taxable equivalent adjustment | 159 | 164 | 149 | 136 | 133 | 323 | 269 | |||||||||||||||||||||
| Fully taxable equivalent net interest income (non-GAAP) | $ | 13,127 | $ | 13,189 | $ | 13,111 | $ | 12,827 | $ | 12,780 | $ | 26,316 | $ | 25,258 | ||||||||||||||
| Non-interest income (GAAP) | $ | 5,216 | $ | 5,601 | $ | 5,023 | $ | 4,912 | $ | 5,326 | $ | 10,817 | $ | 10,512 | ||||||||||||||
| Less: net gains (losses) on security transactions | – | (908 | ) | (81 | ) | 11 | (252 | ) | (908 | ) | (302 | ) | ||||||||||||||||
| Adjusted non-interest income (non-GAAP) | $ | 5,216 | $ | 4,693 | $ | 4,942 | $ | 4,923 | $ | 5,074 | $ | 9,909 | $ | 10,210 | ||||||||||||||
| Non-interest expense (GAAP) | $ | 15,570 | $ | 14,008 | $ | 14,234 | $ | 13,634 | $ | 13,823 | $ | 29,578 | $ | 27,559 | ||||||||||||||
| Less: amortization of intangible assets | (245 | ) | (258 | ) | (270 | ) | (277 | ) | (285 | ) | (503 | ) | (589 | ) | ||||||||||||||
| Less: legal reserve | (1,200 | ) | – | – | – | – | (1,200 | ) | – | |||||||||||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 14,125 | $ | 13,750 | $ | 13,964 | $ | 13,357 | $ | 13,538 | $ | 27,875 | $ | 26,970 | ||||||||||||||
| Average interest-earning assets (GAAP) | $ | 1,573,306 | $ | 1,527,656 | $ | 1,522,176 | $ | 1,474,098 | $ | 1,462,842 | $ | 1,550,481 | $ | 1,456,580 | ||||||||||||||
| Net interest margin – fully taxable equivalent (non-GAAP) | 3.36 | % | 3.47 | % | 3.42 | % | 3.45 | % | 3.50 | % | 3.41 | % | 3.50 | % | ||||||||||||||
| Efficiency ratio (non-GAAP) | 77.00 | % | 76.89 | % | 77.35 | % | 75.25 | % | 75.83 | % | 76.95 | % | 76.04 | % | ||||||||||||||
Tangible Equity and Tangible Assets (Period-End)
Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (in thousands, except per share and ratio data) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| TANGIBLE EQUITY AND TANGIBLE ASSETS | ||||||||||||||||||||||||||||
| (PERIOD END) | ||||||||||||||||||||||||||||
| Total shareholders’ equity (GAAP) | $ | 143,409 | $ | 141,046 | $ | 137,242 | $ | 138,715 | $ | 136,520 | $ | 143,409 | $ | 136,520 | ||||||||||||||
| Less: intangible assets | (25,252 | ) | (25,497 | ) | (25,755 | ) | (26,025 | ) | (26,302 | ) | (25,252 | ) | (26,302 | ) | ||||||||||||||
| Tangible equity (non-GAAP) | $ | 118,157 | $ | 115,549 | $ | 111,487 | $ | 112,690 | $ | 110,218 | $ | 118,157 | $ | 110,218 | ||||||||||||||
| Total assets (GAAP) | $ | 1,683,932 | $ | 1,643,226 | $ | 1,619,964 | $ | 1,631,639 | $ | 1,553,633 | $ | 1,683,932 | $ | 1,553,633 | ||||||||||||||
| Less: intangible assets | (25,252 | ) | (25,497 | ) | (25,755 | ) | (26,025 | ) | (26,302 | ) | (25,252 | ) | (26,302 | ) | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 1,658,680 | $ | 1,617,729 | $ | 1,594,209 | $ | 1,605,614 | $ | 1,527,331 | $ | 1,658,680 | $ | 1,527,331 | ||||||||||||||
| Total equity to total assets at end of period (GAAP) | 8.52 | % | 8.58 | % | 8.47 | % | 8.50 | % | 8.79 | % | 8.52 | % | 8.79 | % | ||||||||||||||
| Book value per share (GAAP) | $ | 30.12 | $ | 29.64 | $ | 28.96 | $ | 29.36 | $ | 28.92 | $ | 30.12 | $ | 28.92 | ||||||||||||||
| Tangible equity to tangible assets at | ||||||||||||||||||||||||||||
| end of period (non-GAAP) | 7.12 | % | 7.14 | % | 6.99 | % | 7.02 | % | 7.22 | % | 7.12 | % | 7.22 | % | ||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 24.81 | $ | 24.28 | $ | 23.53 | $ | 23.85 | $ | 23.35 | $ | 24.81 | $ | 23.35 | ||||||||||||||
Tangible Equity (Average)
Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (in thousands, except ratio data) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| TANGIBLE EQUITY (AVERAGE) | ||||||||||||||||||||||||||||
| Total average shareholders’ equity (GAAP) | $ | 142,746 | $ | 140,864 | $ | 139,697 | $ | 137,855 | $ | 137,386 | $ | 141,795 | $ | 136,684 | ||||||||||||||
| Less: average intangible assets | (25,372 | ) | (25,624 | ) | (25,885 | ) | (26,162 | ) | (26,441 | ) | (25,498 | ) | (26,597 | ) | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 117,374 | $ | 115,240 | $ | 113,812 | $ | 111,693 | $ | 110,945 | $ | 116,297 | $ | 110,087 | ||||||||||||||
| Return on average equity (GAAP) | 4.57 | % | 7.73 | % | 6.05 | % | 7.05 | % | 7.52 | % | 6.14 | % | 7.16 | % | ||||||||||||||
| Return on average tangible equity (non-GAAP) | 5.55 | % | 9.45 | % | 7.42 | % | 8.71 | % | 9.32 | % | 7.48 | % | 8.89 | % | ||||||||||||||
Adjustments for Certain Items of Income or Expense
In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
| (in thousands, except per share and ratio data) | 2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| CORE NET INCOME | ||||||||||||||||||||||||||||
| Reported net income (GAAP) | $ | 1,619 | $ | 2,707 | $ | 2,129 | $ | 2,451 | $ | 2,577 | $ | 4,328 | $ | 4,853 | ||||||||||||||
| Net gains (losses) on security transactions (net of tax) | – | (565 | ) | (50 | ) | 7 | (156 | ) | (565 | ) | (187 | ) | ||||||||||||||||
| Legal reserve | 747 | – | – | – | – | 747 | – | |||||||||||||||||||||
| Core net income (non-GAAP) | $ | 2,366 | $ | 2,142 | $ | 2,079 | $ | 2,458 | $ | 2,421 | $ | 4,510 | $ | 4,666 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,760 | 4,750 | 4,731 | 4,722 | 4,717 | 4,754 | 4,712 | |||||||||||||||||||||
| Reported basic and diluted earnings per share (GAAP) | $ | 0.34 | $ | 0.57 | $ | 0.45 | $ | 0.52 | $ | 0.55 | $ | 0.91 | $ | 1.03 | ||||||||||||||
| Reported return on average assets (GAAP) | 0.39 | % | 0.67 | % | 0.52 | % | 0.62 | % | 0.66 | % | 0.53 | % | 0.63 | % | ||||||||||||||
| Reported return on average equity (GAAP) | 4.57 | % | 7.73 | % | 6.05 | % | 7.05 | % | 7.52 | % | 6.14 | % | 7.16 | % | ||||||||||||||
| Core basic and diluted earnings per share (non-GAAP) | $ | 0.50 | $ | 0.45 | $ | 0.44 | $ | 0.52 | $ | 0.51 | $ | 0.95 | $ | 0.99 | ||||||||||||||
| Core return on average assets (non-GAAP) | 0.57 | % | 0.53 | % | 0.51 | % | 0.62 | % | 0.62 | % | 0.55 | % | 0.60 | % | ||||||||||||||
| Core return on average equity (non-GAAP) | 6.67 | % | 6.12 | % | 5.90 | % | 7.07 | % | 7.07 | % | 6.40 | % | 6.88 | % | ||||||||||||||
Forward-Looking Statements:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation’s expected financial position and operating results, the Corporation’s business strategy, the Corporation’s financial plans, forecasted demographic and economic trends relating to the Corporation’s industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation’s use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend.” The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Corporation’s actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, including the Dodd-Frank Act, and changes in general business and economic trends. Information concerning these and other factors can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2015 Annual Report on Form 10-K. These filings are available publicly on the SEC’s website at http://www.sec.gov, on the Corporation’s website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Karl F. Krebs, EVP and CFO [email protected] Phone: 607-737-3714