UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): April 25, 2013
Chemung Financial Corporation
(Exact Name of Registrant as Specified in Charter)
| New York | 0-13888 | 16-1237038 | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| One Chemung Canal Plaza, P.O. Box 1522, Elmira, NY14901 |
| (Address of Principal Executive Offices) (Zip Code) |
(607) 737-3711
(Registrant's telephone number including area code)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On April 25, 2013, Chemung Financial Corporation (NASDAQ:CHMG) issued a press release describing its results of operations for the first quarter ended March 31, 2013.
The press release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
99.1
Press Release of Chemung Financial Corporation dated April 25, 2013.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| April 25, 2013 | Chemung Financial Corporation |
|
| By: | /s/ MARK A. SEVERSON Mark A. Severson Executive Vice President, Chief Financial Officer & Treasurer |
|
EXHIBIT 99.1
ELMIRA, N.Y., April 25, 2013 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (Nasdaq:CHMG), the parent company of Chemung Canal Trust Company, reported quarter ended March 31, 2013, net income and earnings per share. Highlights for the current quarter include:
Ronald M. Bentley, President and CEO stated, "We are pleased that our financial performance remains strong despite the expected pressure on our net interest margin due to record low interest rates." Mr. Bentley continued, "Even though our level of non-performing assets has increased slightly from a year earlier, the ratio of non-performing assets to total assets, net of accruing troubled debt restructurings and accruing loans past due 90 days or more, continues to be a strong credit quality ratio at 0.61% versus 0.78% a year earlier."
Summary:
Chemung Financial Corporation reported net income of $2.4 million for the three months ended March 31, 2013, a decrease of $1.2 million, or 33.3%, compared with $3.6 million for the three months ended March 31, 2012. Earnings per share for the three months ended March 31, 2013, was $0.52 compared with $0.78 for the three months ended March 31, 2012. Return on average assets and return on average equity for the three months ended March 31, 2013, were 0.77% and 7.37%, respectively, compared with 1.18% and 11.34%, respectively, for the same period in the prior year.
The decline in 2013 earnings was due primarily to a decrease of $0.3 million in net interest income and reductions of $0.3 million in net gain on securities transactions and $0.8 million in pre-tax casualty gains from insurance reimbursements. In addition, non-interest expense increased $0.8 million. These items were partially offset by a reduction of $0.7 million in income taxes.
Net income of $2.4 million for the current quarter ended March 31, 2013 represents an increase of $0.3 million, or 13.2%, from net income of $2.1 million for the preceding quarter ended December 31, 2012. The increase was primarily due to an increase of $0.1 million in net interest income and a reduction of $0.9 million in non-interest expense. These items were partially offset by increases of $0.4 million in the provision for loan losses and $0.2 million in income taxes, along with a reduction of $0.2 million in non-interest income. Earnings per share for the current quarter totaled $0.52 compared with $0.46 for the preceding quarter. Return on average assets and return on average equity for the current quarter were 0.77% and 7.37%, respectively, compared with 0.67% and 6.33%, respectively, for the preceding quarter.
Net Interest Income:
Net interest income for the three months ended March 31, 2013 totaled $11.7 million compared with $12.0 million for the prior year, a decrease of $0.3 million, or 2.6%. Net interest margin was 4.07% for the three months ended March 31, 2013 compared with 4.29% for the same period in the prior year. The decline in net interest income was primarily due to a 40 basis point decrease in the yield on interest-earning assets, partially offset by an increase of $38.5 million in average earning assets. The decline in net interest margin was primarily due to yields on interest-earning assets decreasing at a faster rate than the cost of interest-bearing liabilities. The decrease in yield on interest-earning assets was attributable to lower loan yields as loans continue to reprice at current market rates.
Net interest income for the current quarter totaled $11.7 million compared with $11.6 million for the preceding quarter ended December 31, 2012, an increase of $0.1 million, or 0.7%. Net interest margin was 4.07% for the current quarter compared with 3.98% for the preceding quarter, due primarily to additional income accretion from our purchased credit impaired ("PCI") portfolio from prior acquisitions. Net of PCI adjustments, the net interest margin was 3.94% for the current quarter compared with 3.96% for the preceding quarter.
Non-Interest Income:
Non-interest income for the three months ended March 31, 2013 was $4.0 million compared with $4.9 million for the prior year, a decrease of $0.9 million, or 17.8%. The decline was primarily due to reductions of $0.8 million in casualty gains from insurance reimbursements and $0.3 million in net gain on securities transactions. These items were offset by an increase of $0.2 million in revenue from our equity investments.
Non-interest income for the three months ended March 31, 2013 was $4.0 million compared with $4.2 million for the preceding quarter ended December 31, 2012, a decrease of $0.2 million, or 4.1%. The decline was primarily due to decreases of $0.1 million in service charges on deposit accounts and $0.1 million in net gain on sales of loans held for sale.
Non-Interest Expense:
Non-interest expense for the three months ended March 31, 2013 was $11.7 million compared with $10.9 million for the prior year, an increase of $0.8 million, or 7.3%. The increase was primarily due to increases of $0.3 million in salaries and wages, $0.2 million in professional services and $0.1 million in pension and other employee benefits. The increase in salaries and wages was primarily due to compensation related to merit increases and incentive compensation. The increase in pension and other employee benefits was primarily due to higher pension costs and health benefits. The increase in professional services was due primarily to tax preparation costs for the Wealth Management Group. The tax preparation costs recorded in the first quarter of 2013 were level with 2012 costs, which were recorded in the second quarter of 2012.
Non-interest expense for the three months ended March 31, 2013 was $11.7 million compared with $12.6 million for the preceding quarter ended December 31, 2012, a decrease of $0.9 million, or 7.3%. The decrease was primarily due to decreases of $0.4 million in salaries and wages and $0.4 million in professional services. The decrease in salaries and wages was primarily due to incentive compensation recorded in the preceding quarter. The decrease in professional services was due to consultant fees recorded in the preceding quarter.
Asset Quality:
Non-performing loans totaled $16.8 million at March 31, 2013, or 1.82% of total loans, up slightly from $15.9 million, or 1.78%, at December 31, 2012. Non-performing assets which are comprised of non-performing loans and other real estate owned, totaled $17.4 million at March 31, 2013, or 1.36% of total assets, up slightly from $16.4 million, or 1.32%, at December 31, 2012. Excluding $6.3 million in accruing troubled debt restructurings and $3.2 million in accruing loans past due 90 days or more, the adjusted non-performing assets to total assets ratio was 0.61%.
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 three months ended March 31, 2013 was $0.4 million, down slightly from the prior year. Net charge-offs for the three months ended March 31, 2013 were less than $0.1 million compared with net recoveries of less than $0.1 million for the prior year.
The provision for loan losses for the three months ended March 31, 2013 was $0.4 million compared with $0.1 million for the preceding quarter ended December 31, 2012. The increase in the provision for loan losses is primarily due to the growth in portfolio loans. Net charge-offs for the current quarter were less than $0.1 million compared with $0.5 million for the preceding quarter.
At March 31, 2013 the allowance for loan losses was $10.8 million, compared with $10.4 million at December 31, 2012, and $10.3 million at March 31, 2012. The allowance for loan losses was 64.44% of non-performing loans at March 31, 2013, compared with 65.70% at December 31, 2012 and 67.93% at March 31, 2012. The ratio of the allowance for loan losses to total loans was 1.17% at March 31, 2013, level with December 31, 2012, and down from 1.28% at March 31, 2012.
Balance Sheet Activity:
Assets totaled $1.280 billion at March 31, 2013 compared with $1.248 billion at December 31, 2012, an increase of $31.8 million, or 2.5%. The growth was primarily due to increases of $27.9 million, or 3.1%, in total portfolio loans and $5.9 million in cash and cash equivalents. The increase in portfolio loans was due to strong growth of $27.0 million in commercial loans.
Deposits totaled $1.077 billion at March 31, 2013 compared with $1.045 million at December 31, 2012, an increase of $32.4 million, or 3.1%. The growth was primarily due to increases of $21.9 million in money market accounts, $11.5 million in interest-bearing demand deposits and $7.8 million in savings deposits. These items were partially offset by decreases of $4.2 million in non-interest-bearing demand deposits and $4.6 million in time deposits.
Total equity was $132.9 million at March 31, 2013 compared with $131.1 million at December 31, 2012. The total equity to total assets ratio was 10.38% at March 31, 2013 compared with 10.50% at December 31, 2012. The tangible equity to tangible assets ratio was 8.47% at March 31, 2013 compared with 8.53% at December 31, 2012. As of March 31, 2013, both the Corporation's and the Bank's capital ratios were in excess of those required to be considered well-capitalized under regulatory capital standards.
Other Item:
The market value of total assets under management or administration in our Wealth Management Group was $1.833 billion at March 31, 2013 compared with $1.735 billion at December 31, 2012 and $1.704 billion at March 31, 2012.
About Chemung Financial Corporation:
Chemung Financial Corporation is a $1.3 billion financial services holding company headquartered in Elmira, New York and operates 28 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. CFS Group, Inc. was founded in 2001.
This press release may be found at: www.chemungcanal.com under Shareholder Info.
Forward-Looking Statements:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these sections. All statements regarding, among other things, the Corporation's expected financial condition and results of operations, 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 Wall Street Reform and Consumer Protection 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, including in our 2012 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.
| Chemung Financial Corporation | |||||
| Consolidated Balance Sheets (Unaudited) | |||||
| Mar. 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (Dollars in thousands, except share data) | 2013 | 2012 | 2012 | 2012 | 2012 |
| ASSETS | |||||
| Cash and due from financial institutions | $ 27,757 | $ 29,239 | $ 35,324 | $ 33,673 | $ 27,311 |
| Interest-bearing deposits in other financial institutions | 18,380 | 11,002 | 45,908 | 40,502 | 83,203 |
| Total cash and cash equivalents | 46,137 | 40,241 | 81,232 | 74,175 | 110,514 |
| Trading assets, at fair value | 384 | 348 | 275 | 252 | 254 |
| Securities available for sale | 235,307 | 239,686 | 253,669 | 260,942 | 259,450 |
| Securities held to maturity | 9,898 | 5,749 | 6,163 | 6,334 | 7,447 |
| FHLB and FRB stocks, at cost | 4,607 | 4,710 | 4,760 | 5,359 | 5,436 |
| Total investment securities | 249,812 | 250,145 | 264,592 | 272,635 | 272,333 |
| Commercial | 481,063 | 454,048 | 444,491 | 436,205 | 414,536 |
| Mortgage | 202,114 | 200,476 | 193,049 | 194,512 | 192,548 |
| Consumer | 238,256 | 238,993 | 238,818 | 225,230 | 195,949 |
| Total loans | 921,433 | 893,517 | 876,358 | 855,947 | 803,033 |
| Allowance for loan losses | (10,825) | (10,433) | (10,828) | (10,392) | (10,283) |
| Loans, net | 910,608 | 883,084 | 865,530 | 845,555 | 792,750 |
| Loans held for sale | 786 | 1,057 | 1,165 | 482 | 826 |
| Premises and equipment, net | 24,800 | 25,484 | 24,863 | 24,718 | 24,977 |
| Goodwill | 21,824 | 21,824 | 21,824 | 21,824 | 21,824 |
| Other intangible assets, net | 4,909 | 5,144 | 5,382 | 5,642 | 5,906 |
| Other assets | 20,712 | 20,833 | 22,117 | 22,176 | 25,111 |
| Total assets | $ 1,279,972 | $ 1,248,160 | $ 1,286,980 | $ 1,267,459 | $ 1,254,495 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Deposits: | |||||
| Non-interest-bearing demand deposits | $ 296,361 | $ 300,610 | $ 302,509 | $ 297,413 | $ 272,055 |
| Interest-bearing demand deposits | 102,201 | 90,730 | 108,923 | 88,343 | 88,105 |
| Insured money market accounts | 265,025 | 243,115 | 248,722 | 232,870 | 212,376 |
| Savings deposits | 181,421 | 173,589 | 174,074 | 174,974 | 203,204 |
| Time deposits | 232,091 | 236,690 | 248,948 | 260,079 | 262,965 |
| Total deposits | 1,077,099 | 1,044,734 | 1,083,176 | 1,053,679 | 1,038,705 |
| Securities sold under agreements to repurchase | 31,427 | 32,711 | 32,918 | 31,750 | 34,998 |
| FHLB term advances | 27,158 | 27,225 | 28,046 | 41,128 | 43,227 |
| Other liabilities | 11,380 | 12,375 | 9,960 | 10,693 | 8,736 |
| Total liabilities | 1,147,064 | 1,117,045 | 1,154,100 | 1,137,250 | 1,125,666 |
| Shareholders' equity | |||||
| Common stock | 53 | 53 | 53 | 53 | 53 |
| Additional-paid-in capital | 45,473 | 45,357 | 45,538 | 45,525 | 45,556 |
| Retained earnings | 108,296 | 107,078 | 106,092 | 104,402 | 103,100 |
| Treasury stock, at cost | (18,291) | (18,566) | (18,731) | (18,915) | (18,734) |
| Accumulated other comprehensive income (loss) | (2,623) | (2,807) | (72) | (856) | (1,146) |
| Total shareholders' equity | 132,908 | 131,115 | 132,880 | 130,209 | 128,829 |
| Total liabilities and shareholders' equity | $ 1,279,972 | $ 1,248,160 | $ 1,286,980 | $ 1,267,459 | $ 1,254,495 |
| Period-end shares outstanding | 4,657,151 | 4,649,741 | 4,642,317 | 4,632,014 | 4,639,565 |
| Chemung Financial Corporation | |||
| Consolidated Statements of Income (Unaudited) | |||
| Three Months Ended | |||
| March 31, | Percent | ||
| (Dollars in thousands, except share and per share data) | 2013 | 2012 | Change |
| Interest and dividend income: | |||
| Loans, including fees | $ 11,304 | $ 11,671 | (3.1) |
| Taxable securities | 1,131 | 1,486 | (23.9) |
| Tax exempt securities | 305 | 341 | (10.6) |
| Interest-bearing deposits | 8 | 42 | (81.0) |
| Total interest and dividend income | 12,748 | 13,540 | (5.8) |
| Interest expense: | |||
| Deposits | 624 | 913 | (31.7) |
| Securities sold under agreements to repurchase | 219 | 283 | (22.6) |
| Borrowed funds | 188 | 313 | (39.9) |
| Total interest expense | 1,031 | 1,509 | (31.7) |
| Net interest income | 11,717 | 12,031 | (2.6) |
| Provision for loan losses | 431 | 477 | (9.6) |
| Net interest income after provision for loan losses | 11,286 | 11,554 | (2.3) |
| Non-interest income: | |||
| Wealth management group fee income | 1,750 | 1,776 | (1.5) |
| Service charges on deposit accounts | 969 | 992 | (2.3) |
| Net gain on securities transactions | -- | 297 | (100.0) |
| Net gain on sales of loans held for sale | 112 | 65 | 72.3 |
| Net loss on sales of other real estate owned | -- | (6) | N/M |
| Casualty gains | -- | 759 | (100.0) |
| Other | 1,191 | 1,007 | 18.3 |
| Total non-interest income | 4,022 | 4,890 | (17.8) |
| Non-interest expense: | |||
| Salaries and wages | 4,818 | 4,493 | 7.2 |
| Pension and other employee benefits | 1,424 | 1,290 | 10.4 |
| Net occupancy | 1,362 | 1,295 | 5.2 |
| Furniture and equipment | 518 | 518 | 0.0 |
| Data processing | 1,113 | 1,079 | 3.2 |
| Professional fees | 329 | 150 | 119.3 |
| Amortization of intangible assets | 235 | 284 | (17.3) |
| Marketing and advertising | 288 | 289 | (0.3) |
| Other real estate owned expense | 36 | 43 | (16.3) |
| FDIC insurance | 217 | 227 | (4.4) |
| Loan expenses | 143 | 180 | (20.6) |
| Other | 1,242 | 1,083 | 14.7 |
| Total non-interest expense | 11,725 | 10,931 | 7.3 |
| Income before income tax expense | 3,583 | 5,513 | (35.0) |
| Income tax expense | 1,171 | 1,898 | (38.3) |
| Net income | $ 2,412 | $ 3,615 | (33.3) |
| Basic and diluted earnings per share | $ 0.52 | $ 0.78 | |
| Cash dividends declared per share | 0.26 | 0.25 | |
| Average basic and diluted shares outstanding | 4,655,862 | 4,642,012 | |
| N/M -- Not meaningful. | |||
| Chemung Financial Corporation | |||||
| Consolidated Financial Highlights (Unaudited) | |||||
| As of or for the Three Months Ended | |||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | |
| (Dollars in thousands, except share and per share data) | 2013 | 2012 | 2012 | 2012 | 2012 |
| RESULTS OF OPERATIONS | |||||
| Interest income | $ 12,748 | $ 12,757 | $ 13,015 | $ 12,765 | $ 13,540 |
| Interest expense | 1,031 | 1,116 | 1,225 | 1,384 | 1,509 |
| Net interest income | 11,717 | 11,641 | 11,790 | 11,381 | 12,031 |
| Provision for loan losses | 431 | 74 | 225 | 52 | 477 |
| Net interest income after provision for loan losses | 11,286 | 11,567 | 11,565 | 11,329 | 11,554 |
| Non-interest income | 4,022 | 4,192 | 3,993 | 4,112 | 4,890 |
| Non-interest expense | 11,725 | 12,642 | 11,341 | 11,882 | 10,931 |
| Income before income tax expense | 3,583 | 3,117 | 4,217 | 3,559 | 5,513 |
| Income tax expense | 1,171 | 987 | 1,383 | 1,115 | 1,898 |
| Net income | $ 2,412 | $ 2,130 | $ 2,834 | $ 2,444 | $ 3,615 |
| Basic and diluted earnings per share | $ 0.52 | $ 0.46 | $ 0.61 | $ 0.53 | $ 0.78 |
| Average basic and diluted shares outstanding | 4,655,862 | 4,643,695 | 4,641,547 | 4,636,395 | 4,642,012 |
| PERFORMANCE RATIOS | |||||
| Return on average assets | 0.77% | 0.67% | 0.89% | 0.78% | 1.18% |
| Return on average equity | 7.37% | 6.33% | 8.53% | 7.55% | 11.34% |
| Return on average tangible equity (a) | 9.24% | 7.94% | 10.76% | 9.58% | 14.47% |
| Efficiency ratio (b) | 74.50% | 79.85% | 71.91% | 76.81% | 68.90% |
| Non-interest expense to average assets | 3.75% | 3.98% | 3.57% | 3.82% | 3.56% |
| Loans to deposits | 85.55% | 85.53% | 80.91% | 81.23% | 77.31% |
| YIELDS / RATES | |||||
| Yield on loans | 5.04% | 5.02% | 5.21% | 5.39% | 5.90% |
| Yield on investments | 2.28% | 2.23% | 2.23% | 2.13% | 2.27% |
| Yield on interest-earning assets | 4.43% | 4.36% | 4.46% | 4.46% | 4.83% |
| Cost of interest-bearing deposits | 0.33% | 0.36% | 0.40% | 0.43% | 0.49% |
| Cost of borrowings | 2.79% | 2.74% | 2.84% | 3.01% | 2.97% |
| Cost of interest-bearing liabilities | 0.50% | 0.54% | 0.59% | 0.66% | 0.73% |
| Interest rate spread | 3.93% | 3.82% | 3.87% | 3.80% | 4.10% |
| Net interest margin | 4.07% | 3.98% | 4.04% | 3.98% | 4.29% |
| CAPITAL | |||||
| Total equity to total assets at end of period | 10.38% | 10.50% | 10.32% | 10.27% | 10.27% |
| Tangible equity to tangible assets at end of period (a) | 8.47% | 8.53% | 8.39% | 8.29% | 8.24% |
| Book value per share | $ 28.54 | $ 28.20 | $ 28.62 | $ 28.11 | $ 27.77 |
| Tangible book value per share | 22.80 | 22.40 | 22.76 | 22.18 | 21.79 |
| Period-end market value per share | 33.90 | 29.89 | 23.77 | 25.50 | 25.40 |
| Dividends declared per share | 0.26 | 0.25 | 0.25 | 0.25 | 0.25 |
| AVERAGE BALANCES | |||||
| Loans (c) | $ 909,166 | $ 888,515 | $ 867,971 | $ 823,754 | $ 796,035 |
| Earning assets | 1,166,590 | 1,162,788 | 1,160,479 | 1,150,073 | 1,128,047 |
| Total assets | 1,266,379 | 1,264,125 | 1,262,648 | 1,252,461 | 1,235,453 |
| Deposits | 1,064,016 | 1,059,463 | 1,055,510 | 1,037,576 | 1,018,035 |
| Total equity | 132,783 | 133,799 | 132,186 | 130,254 | 128,194 |
| Tangible equity (a) | 105,913 | 106,703 | 104,827 | 102,635 | 100,465 |
| ASSET QUALITY | |||||
| Net charge-offs (recoveries) | $ 39 | $ 469 | $ (210) | $ (58) | $ (23) |
| Non-performing loans | 16,798 | 15,880 | 13,260 | 15,009 | 15,137 |
| Non-performing assets | 17,363 | 16,445 | 14,194 | 15,979 | 16,117 |
| Allowance for loan losses | 10,825 | 10,433 | 10,828 | 10,392 | 10,283 |
| Annualized net charge-offs to average loans | 0.02% | 0.21% | (0.10)% | (0.03)% | (0.01)% |
| Non-performing loans to total loans | 1.82% | 1.78% | 1.51% | 1.75% | 1.88% |
| Non-performing assets to total assets | 1.36% | 1.32% | 1.10% | 1.26% | 1.28% |
| Adjusted non-performing assets to total assets (d) | 0.61% | 0.53% | 0.75% | 0.77% | 0.78% |
| Allowance for loan losses to total loans | 1.17% | 1.17% | 1.24% | 1.21% | 1.28% |
| Allowance for originated loans to originated loans (e) | 1.16% | 1.18% | 1.38% | 1.38% | 1.48% |
| Allowance for loan losses to non-performing loans | 64.44% | 65.70% | 81.66% | 69.24% | 67.93% |
| (a) See the GAAP to Non-GAAP reconciliations. | |||||
| (b) Efficiency ratio is non-interest expense divided by the total of net interest income plus non-interest income less net gain on securities transactions less casualty gains. | |||||
| (c) Loans include loans held for sale. Loans do not reflect the allowance for loan losses. | |||||
| (d) Adjusted non-performing assets include total non-performing assets less accruing troubled debt restructurings and accruing loans past due 90 days or more. | |||||
| (e) Originated loans represent total loans excluding acquired loans. | |||||
| Chemung Financial Corporation | |||||||
| GAAP to Non-GAAP Reconciliations (Unaudited) | |||||||
| The table below shows computations of tangible equity and tangible assets and certain related ratios, all of which are considered to be non-GAAP financial measures. The tangible equity to tangible assets ratio has become a focus of some investors and management believes this ratio may assist in analyzing the Corporation's capital position, absent the effects of intangible assets. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of results reported under GAAP. Because not all companies use identical calculations, the non-GAAP measures presented in the following table may not be comparable to those reported by other companies. | |||||||
| As of or for the Three Months Ended | |||||||
| (Dollars in thousands, | March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | ||
| except per share data) | 2013 | 2012 | 2012 | 2012 | 2012 | ||
| TANGIBLE EQUITY AND TANGIBLE ASSETS | |||||||
| (PERIOD END) | |||||||
| Total shareholders' equity (GAAP) | $ 132,908 | $ 131,115 | $ 132,880 | $ 130,209 | $ 128,829 | ||
| Less: intangible assets | (26,733) | (26,968) | (27,206) | (27,466) | (27,730) | ||
| Tangible equity (non-GAAP) | $ 106,175 | $ 104,147 | $ 105,674 | $ 102,743 | $ 101,099 | ||
| Total assets (GAAP) | $ 1,279,972 | $ 1,248,160 | $ 1,286,980 | $ 1,267,459 | $ 1,254,495 | ||
| Less: intangible assets | (26,733) | (26,968) | (27,206) | (27,466) | (27,730) | ||
| Tangible assets (non-GAAP) | $ 1,253,239 | $ 1,221,192 | $ 1,259,774 | $ 1,239,993 | $ 1,226,765 | ||
| Total equity to total assets at end of period (GAAP) | 10.38% | 10.50% | 10.32% | 10.27% | 10.27% | ||
| Book value per share (GAAP) | $ 28.54 | $ 28.20 | $ 28.62 | $ 28.11 | $ 27.77 | ||
| Tangible equity to tangible assets at end of period (non-GAAP) | 8.47% | 8.53% | 8.39% | 8.29% | 8.24% | ||
| Tangible book value per share (non-GAAP) | $ 22.80 | $ 22.40 | $ 22.76 | $ 22.18 | $ 21.79 | ||
| TANGIBLE EQUITY AND TANGIBLE ASSETS | |||||||
| (AVERAGE) | |||||||
| Total shareholders' equity (GAAP) | $ 132,783 | $ 133,799 | $ 132,186 | $ 130,254 | $ 128,194 | ||
| Less: intangible assets | (26,870) | (27,096) | (27,359) | (27,619) | (27,729) | ||
| Tangible equity (non-GAAP) | $ 105,913 | $ 106,703 | $ 104,827 | $ 102,635 | $ 100,465 | ||
| Return on average equity (GAAP) | 7.37% | 6.33% | 8.53% | 7.55% | 11.34% | ||
| Return on average tangible equity (non-GAAP) | 9.24% | 7.94% | 10.76% | 9.58% | 14.47% | ||
CONTACT: Mark A. Severson, EVP and CFO
Phone: 607-737-3714