EXHIBIT 99.1
Chemung Financial Reports Annual and Fourth Quarter 2015 Net Income of $9.4 Million, or $2.00 per Share, and $2.1 Million, or $0.45 per Share
ELMIRA, N.Y., Jan. 28, 2016 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (Nasdaq:CHMG), the parent company of Chemung Canal Trust Company (“the Bank”), today reported net income of $9.4 million, or $2.00 per share, for the full year of 2015 compared to $8.2 million, or $1.74 per share, for the full year of 2014. Net income for the fourth quarter of 2015 was $2.1 million, or $0.45 per share, compared to $4.5 million, or $0.96 per share, for the fourth quarter of 2014.
Ronald M. Bentley, Chemung Financial Corporation CEO stated:
“We saw improvements in our earnings for the year, which increased nearly 15% year over year, due to the continued growth in our commercial loan and investment securities portfolios, along with expense control. For 2016 we will focus on increasing net interest income and managing expenses, as we continue to look for opportunities to enhance income and gain efficiencies in our day-to-day operations.”
Fourth Quarter Highlights1
A more detailed summary of financial performance follows:
1 Balance sheet comparisons are calculated for December 31, 2015 versus December 31, 2014. Income statement comparisons are calculated for the fourth quarter of 2015 versus prior-year fourth quarter.
YTD 2015 vs YTD 2014
Net Interest Income:
Net interest income for the year ended December 31, 2015 totaled $50.6 million compared with $49.6 million for the preceding year, an increase of $1.0 million, or 2.2%. The increase was due primarily to interest income from the commercial loan portfolio, as the year-to-date average commercial loan balance increased $88.6 million when compared to the preceding year. Fully taxable equivalent net interest margin was 3.46%, compared with 3.59% for the preceding year. The decline in net interest margin was a result of the commercial loan portfolio repricing to current market rates. The yield on interest-earning assets decreased by fourteen basis points, while the cost of interest-bearing liabilities decreased two basis points. Average interest-earning assets increased $78.2 million compared to the prior year, primarily in commercial loans.
Non-Interest Income:
Non-interest income for the year ended December 31, 2015 was $20.4 million compared with $26.8 million for the preceding year, a decrease of $6.3 million, or 23.6%. The decrease was primarily due to the $6.3 million net gains on security transactions that occurred during the fourth quarter of 2014, when the Bank sold the majority of its equity securities portfolio, along with decreases of $0.4 million in services charges on deposit accounts and $0.3 million in other non-interest income. These decreases were offset by a $0.8 million increase in wealth management group fee income, due to fee increases that went into effect at the beginning of 2015.
Non-Interest Expense:
Non-interest expense for the year ended December 31, 2015 was $55.4 million compared with $60.5 million for the preceding year, a decrease of $5.1 million, or 8.4%. The decrease was due primarily to the $4.3 million legal settlement that occurred in 2014, relating to the Bank’s Wealth Management Group, and decreases of $0.3 million in professional services, $0.2 million in amortization of intangible assets, $0.2 million in marketing and advertising, and $0.6 million in other non-interest expense. These decreases were offset by a $0.2 million increase in pension and other employee benefits, $0.2 million data processing, and $0.6 million in other real estate owned expenses. The decrease in professional services relates to the consulting costs associated with the rebranding of the Bank’s debit cards from Visa to Mastercard in 2014. The increase in other real estate owned expenses is due to expenses related to maintaining two properties, along with fair market value adjustments during the year.
4th Quarter 2015 vs 4th Quarter 2014
Net Interest Income:
Net interest income for the current quarter totaled $13.0 million, consistent with the same period in the prior year. Interest and fees from loans decreased $0.4 million, while interest and dividend income from securities increased $0.4 million when compared to the same period in the prior year. Average interest-earning assets increased $111.4 million compared to the same period in the prior year. Fully taxable equivalent net interest margin was 3.42%, compared with 3.71% for the same period in the prior year, which included one-time pre-payment fees and purchased credit impairment adjustments of $0.4 million. The yield on interest-earning assets and cost of interest-bearing liabilities decreased thirty and one basis points, respectively.
Non-Interest Income:
Non-interest income for the quarter was $5.0 million compared with $11.4 million for the same period in the prior year, a decrease of $6.4 million, or 55.9%. The decrease was due primarily to the $6.3 million net gain on security transactions that occurred during the fourth quarter of 2014, when the Bank sold the majority of its equity securities portfolio.
Non-Interest Expense:
Non-interest expense for the quarter was $14.2 million compared with $15.8 million for the same period in the prior year, a decrease of $1.6 million, or 9.9%. The decrease was due primarily to decreases of $0.5 million in pension and other employee benefits, $0.2 million in net occupancy, $0.2 million in furniture and equipment, $0.3 million in data processing, $0.3 million in professional services, and $0.3 million in other non-interest expense. These items were offset by increases of $0.1 million in salaries and wages and $0.3 million in other real estate owned expenses. The decrease in pension and other employee benefits was primarily due to lower health care costs during the quarter, as the Bank is self-insured. The decreases in net occupancy, furniture and equipment, data processing, professional services, and other non-interest expense were due to cost savings measures put into place by management during the year. The increase in other real estate owned expenses relates to a fair market value adjustment during the fourth quarter of 2015 for one property, based upon an accepted offer.
4th Quarter vs 3rd Quarter 2015
Net Interest Income:
Net interest income for the fourth quarter totaled $13.0 million compared with $12.7 million for the preceding quarter, an increase of $0.3 million, or 2.1%. The increase was due primarily to interest income from the commercial loan portfolio and interest and dividends from taxable securities. Average interest-earning assets increased $48.1 million compared to the preceding quarter, primarily in commercial loans and investment securities. Fully taxable equivalent net interest margin was 3.42%, compared with 3.45% for the preceding quarter. The decline in net interest margin was a result of the commercial loan portfolio repricing to current market rates. The yield on interest-earning assets decreased by four basis points, while the cost of interest-bearing liabilities remained consistent with the prior quarter.
Non-Interest Income:
Non-interest income for the fourth quarter was $5.0 million compared with $4.9 million for the preceding quarter, an increase of $0.1 million, or 2.3%. The increase was primarily due to increases of $0.2 million in other non-interest income and $0.1 million in net gains on security transactions. These increases were offset by decreases of less than $0.1 million in wealth management group fee income, service charges on deposit accounts, net gains on sales of loans held for sale and net losses on sales of other real estate owned.
Non-Interest Expense:
Non-interest expense for the fourth quarter was $14.2 million compared with $13.6 million for the preceding quarter, an increase of $0.6 million, or 4.4%. The increase was due primarily to increases of $0.7 million in salaries and wages, $0.2 million in professional services, and $0.3 million in other real estate owned expenses. These increases were offset by a $0.5 million decrease in pension and other employee benefits. The increase in salaries and wages was due to an adjustment to the incentive awards during the fourth quarter, as annual targets were met. The increase in other real estate owned expenses was due to a fair market value adjustment to one property, based on an accepted offer from an independent third-party. The decrease in pension and other employee benefits was due to lower health care costs, as the Bank is self-insured, and a year-end adjustment to the pension liability due to a larger than expected number of employees retiring during the year and lower than expected salary increases.
Asset Quality
Non-performing loans totaled $12.2 million at December 31, 2015, or 1.05% of total loans, compared with $7.8 million at December 31, 2014, or 0.69% of total loans. The increase in non-performing loans at December 31, 2015 was primarily in the commercial loan segment of the loan portfolio. Non-performing assets, which are comprised of non-performing loans and other real estate owned, were $13.8 million, or 0.85% of total assets, at December 31, 2015, compared with $10.8 million, or 0.71% of total assets, at December 31, 2014.
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 fourth quarter of 2015 and 2014 were $0.6 million and $1.7 million, respectively. Net charge-offs for the fourth quarter of 2015 were $0.4 million compared with $1.1 million for the same period in the prior year. The provision for loan losses for the year ended 2015 and 2014 were $1.6 million and $4.0 million, respectively. Net charge-offs for the year ended 2015 were $1.0 million compared with $3.1 million for the same period in the prior year.
At December 31, 2015 the allowance for loan losses was $14.3 million, compared with $13.7 million at December 31, 2014. The allowance for loan losses was 116.7% of non-performing loans at December 31, 2015, compared with 176.0% at December 31, 2014. The decline in the allowance for loan losses to non-performing loans is due to two commercial real estate loans which were placed in non-accrual status during the year. The Bank believes the specific allowance for both of these commercial real estate loans are adequate to absorb probably incurred losses. The ratio of the allowance for loan losses to total loans was 1.22% at December 31, 2015, level with December 31, 2014.
Balance Sheet Activity
Assets totaled $1.620 billion at December 31, 2015 compared with $1.525 billion at December 31, 2014, an increase of $95.4 million, or 6.3%. The growth was due primarily to increases of $47.1 million, or 4.2%, in the loan portfolio and $62.3 million, or 21.3% in investment securities, partially offset by a decrease of $3.0 million, or 10.2% in cash and cash equivalents and $7.0 million, or 19.8% in accrued interest receivable and other assets. The increase in loans can be attributed to increases of $80.7 million in commercial loans, offset by decreases of $1.0 million in mortgages and $32.6 million decrease in consumer loans, attributed mostly to the indirect loan portfolio. The $62.3 million increase in investment securities can be mostly attributed to the investment of excess cash from municipal client deposits into higher yielding mortgage-backed securities during the year. The $7.0 million decrease in accrued interest receivable and other assets can be mostly attributed to the receipt of insurance proceeds from the Wealth Management Group legal settlement during the second quarter of 2015.
Deposits totaled $1.400 billion at December 31, 2015 compared with $1.280 billion at December 31, 2014, an increase of $120.3 million, or 9.4%. The growth was mostly attributable to increases of $104.8 million in money market accounts, $35.9 million in non-interest-bearing demand deposits, $19.8 million in interest-bearing demand deposits, and $5.6 million in savings deposits. Partially offsetting the increases noted above was a $45.8 million decrease in time deposits. The changes in money market accounts and demand deposits can be attributed to the net inflow of deposits from municipal clients, as well as new municipal client relationships.
Total equity was $137.2 million at December 31, 2015 compared with $133.6 million at December 31, 2014, an increase of $3.6 million, or 2.7%. The increase was primarily due to earnings of $9.4 million and a reduction of $1.0 million in treasury stock, offset by an increase of $2.2 million in accumulated other comprehensive loss and $4.8 million in dividends declared during the year.
The total equity to total assets ratio was 8.47% at December 31, 2015 compared with 8.77% at December 31, 2014. The tangible equity to tangible assets ratio was 6.99% at December 31, 2015 compared with 7.13% at December 31, 2014. Book value per share increased to $28.96 at December 31, 2015 from $28.44 at December 31, 2014. As of December 31, 2015, 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 $1.856 billion at December 31, 2015 compared with $1.956 billion at December 31, 2014, a decrease of $100.2 million, or 5.1%. The decrease can be attributed to a decline in the market values of assets.
About Chemung Financial Corporation
Chemung Financial Corporation is a $1.6 billion financial services holding company headquartered in Elmira, New York and operates 34 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.
This press release may be found at: www.chemungcanal.com under Investor Relations.
| Chemung Financial Corporation | |||||||||||||||||||||
| Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | |||||||||||||||||
| (in thousands, except share data) | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from financial institutions | $ | 24,886 | $ | 30,800 | $ | 28,014 | $ | 29,643 | $ | 28,130 | |||||||||||
| Interest-bearing deposits in other financial institutions | 1,299 | 44,449 | 1,650 | 55,230 | 1,033 | ||||||||||||||||
| Total cash and cash equivalents | 26,185 | 75,249 | 29,664 | 84,873 | 29,163 | ||||||||||||||||
| Trading assets, at fair value | 701 | 636 | 635 | 601 | 549 | ||||||||||||||||
| Securities available for sale | 344,820 | 335,571 | 290,571 | 266,307 | 280,507 | ||||||||||||||||
| Securities held to maturity | 4,566 | 4,604 | 6,045 | 5,693 | 5,831 | ||||||||||||||||
| FHLB and FRB stocks, at cost | 4,797 | 4,171 | 4,873 | 4,148 | 5,535 | ||||||||||||||||
| Total investment securities | 354,183 | 344,346 | 301,489 | 276,148 | 291,873 | ||||||||||||||||
| Commercial | 699,712 | 664,505 | 665,303 | 652,217 | 618,999 | ||||||||||||||||
| Mortgage | 195,778 | 197,506 | 198,469 | 198,628 | 196,809 | ||||||||||||||||
| Consumer | 273,143 | 279,926 | 286,634 | 292,727 | 305,766 | ||||||||||||||||
| Loans, net of deferred loan fees | 1,168,633 | 1,141,937 | 1,150,406 | 1,143,572 | 1,121,574 | ||||||||||||||||
| Allowance for loan losses | (14,260 | ) | (14,022 | ) | (14,028 | ) | (13,892 | ) | (13,686 | ) | |||||||||||
| Loans, net | 1,154,373 | 1,127,915 | 1,136,378 | 1,129,680 | 1,107,888 | ||||||||||||||||
| Loans held for sale | 1,076 | 316 | 668 | 628 | 665 | ||||||||||||||||
| Premises and equipment, net | 29,397 | 30,023 | 30,874 | 31,548 | 32,287 | ||||||||||||||||
| Goodwill | 21,824 | 21,824 | 21,824 | 21,824 | 21,824 | ||||||||||||||||
| Other intangible assets, net | 3,931 | 4,201 | 4,478 | 4,763 | 5,067 | ||||||||||||||||
| Accrued interest receivable and other assets | 28,256 | 27,129 | 27,623 | 34,707 | 35,223 | ||||||||||||||||
| Total assets | $ | 1,619,926 | $ | 1,631,639 | $ | 1,553,633 | $ | 1,584,772 | $ | 1,524,539 | |||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 402,236 | $ | 392,734 | $ | 385,467 | $ | 376,773 | $ | 366,298 | |||||||||||
| Interest-bearing demand deposits | 130,573 | 144,097 | 118,988 | 127,593 | 110,819 | ||||||||||||||||
| Insured money market accounts | 497,658 | 503,411 | 447,360 | 476,464 | 392,871 | ||||||||||||||||
| Savings deposits | 203,749 | 196,994 | 199,437 | 199,349 | 198,183 | ||||||||||||||||
| Time deposits | 166,079 | 173,205 | 180,725 | 187,951 | 211,843 | ||||||||||||||||
| Total deposits | 1,400,295 | 1,410,441 | 1,331,977 | 1,368,130 | 1,280,014 | ||||||||||||||||
| FHLB overnight advances | 13,900 | - | 15,600 | - | 30,830 | ||||||||||||||||
| Securities sold under agreements to repurchase | 28,453 | 30,358 | 31,882 | 31,084 | 29,652 | ||||||||||||||||
| FHLB advances and other debt | 22,076 | 22,140 | 22,201 | 22,259 | 22,286 | ||||||||||||||||
| Accrued interest payable and other liabilities | 17,960 | 29,985 | 15,453 | 27,006 | 28,129 | ||||||||||||||||
| Total liabilities | 1,482,684 | 1,492,924 | 1,417,113 | 1,448,479 | 1,390,911 | ||||||||||||||||
| Shareholders' equity | |||||||||||||||||||||
| Common stock | 53 | 53 | 53 | 53 | 53 | ||||||||||||||||
| Additional-paid-in capital | 45,537 | 45,545 | 45,468 | 45,477 | 45,355 | ||||||||||||||||
| Retained earnings | 118,973 | 118,057 | 116,817 | 115,450 | 114,383 | ||||||||||||||||
| Treasury stock, at cost | (16,379 | ) | (16,654 | ) | (16,704 | ) | (16,900 | ) | (17,378 | ) | |||||||||||
| Accumulated other comprehensive income (loss) | (10,942 | ) | (8,286 | ) | (9,114 | ) | (7,787 | ) | (8,785 | ) | |||||||||||
| Total shareholders' equity | 137,242 | 138,715 | 136,520 | 136,293 | 133,628 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,619,926 | $ | 1,631,639 | $ | 1,553,633 | $ | 1,584,772 | $ | 1,524,539 | |||||||||||
| Period-end shares outstanding | 4,738,750 | 4,724,432 | 4,719,874 | 4,712,156 | 4,699,186 | ||||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||
| Consolidated Statements of Income (Loss) (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| December 31, | Percent | December 31, | Percent | |||||||||||||||||||||
| (in thousands, except share and per share data) | 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||||||
| Loans, including fees | $ | 12,158 | $ | 12,549 | (3.1 | ) | $ | 48,271 | $ | 47,139 | 2.4 | |||||||||||||
| Taxable securities | 1,468 | 1,153 | 27.3 | 4,958 | 5,043 | (1.7 | ) | |||||||||||||||||
| Tax exempt securities | 254 | 215 | 18.1 | 939 | 967 | (2.9 | ) | |||||||||||||||||
| Interest-bearing deposits | 16 | 5 | 220.0 | 76 | 64 | 18.8 | ||||||||||||||||||
| Total interest and dividend income | 13,896 | 13,922 | (0.2 | ) | 54,244 | 53,213 | 1.9 | |||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Deposits | 525 | 492 | 6.7 | 2,003 | 2,043 | (2.0 | ) | |||||||||||||||||
| Securities sold under agreements to repurchase | 214 | 214 | 0.0 | 848 | 848 | 0.0 | ||||||||||||||||||
| Borrowed funds | 195 | 182 | 7.1 | 751 | 754 | (0.4 | ) | |||||||||||||||||
| Total interest expense | 934 | 888 | 5.2 | 3,602 | 3,645 | (1.2 | ) | |||||||||||||||||
| Net interest income | 12,962 | 13,034 | (0.6 | ) | 50,642 | 49,568 | 2.2 | |||||||||||||||||
| Provision for loan losses | 615 | 1,650 | (62.7 | ) | 1,571 | 3,981 | (60.5 | ) | ||||||||||||||||
| Net interest income after provision for loan losses | 12,347 | 11,384 | 8.5 | 49,071 | 45,587 | 7.6 | ||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||
| Wealth management group fee income | 2,076 | 1,931 | 7.5 | 8,522 | 7,747 | 10.0 | ||||||||||||||||||
| Service charges on deposit accounts | 1,249 | 1,319 | (5.3 | ) | 4,886 | 5,281 | (7.5 | ) | ||||||||||||||||
| Net gains (losses) on securities transactions | 81 | 6,347 | (98.7 | ) | 372 | 6,869 | (94.6 | ) | ||||||||||||||||
| Net gains on sales of loans held for sale | 55 | 92 | (40.2 | ) | 294 | 301 | (2.3 | ) | ||||||||||||||||
| Net gains (losses) on sales of other real estate owned | (36 | ) | (24 | ) | N/M | 84 | (64 | ) | N/M | |||||||||||||||
| Income from bank owned life insurance | 19 | 20 | (5.0 | ) | 75 | 78 | (3.8 | ) | ||||||||||||||||
| Other | 1,579 | 1,715 | (7.9 | ) | 6,214 | 6,544 | (5.0 | ) | ||||||||||||||||
| Total non-interest income | 5,023 | 11,400 | (55.9 | ) | 20,447 | 26,756 | (23.6 | ) | ||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||
| Salaries and wages | 5,800 | 5,663 | 2.4 | 21,223 | 21,315 | (0.4 | ) | |||||||||||||||||
| Pension and other employee benefits | 1,060 | 1,602 | (33.8 | ) | 5,908 | 5,733 | 3.1 | |||||||||||||||||
| Net occupancy | 1,698 | 1,925 | (11.8 | ) | 7,006 | 7,098 | (1.3 | ) | ||||||||||||||||
| Furniture and equipment | 715 | 921 | (22.4 | ) | 2,979 | 2,972 | 0.2 | |||||||||||||||||
| Data processing | 1,722 | 2,010 | (14.3 | ) | 6,586 | 6,393 | 3.0 | |||||||||||||||||
| Professional services | 404 | 685 | (41.0 | ) | 1,293 | 1,597 | (19.0 | ) | ||||||||||||||||
| Legal settlements | - | - | N/M | - | 4,250 | (100.0 | ) | |||||||||||||||||
| Amortization of intangible assets | 270 | 317 | (14.8 | ) | 1,136 | 1,310 | (13.3 | ) | ||||||||||||||||
| Marketing and advertising | 185 | 200 | (7.5 | ) | 899 | 1,079 | (16.7 | ) | ||||||||||||||||
| Other real estate owned expense | 425 | 93 | 357.0 | 812 | 247 | 228.7 | ||||||||||||||||||
| FDIC insurance | 232 | 302 | (23.2 | ) | 1,075 | 1,116 | (3.7 | ) | ||||||||||||||||
| Loan expense | 166 | 247 | (32.8 | ) | 693 | 811 | (14.5 | ) | ||||||||||||||||
| Merger and acquisition expenses | - | - | N/M | - | 115 | (100.0 | ) | |||||||||||||||||
| Other | 1,557 | 1,827 | (14.8 | ) | 5,817 | 6,441 | (9.7 | ) | ||||||||||||||||
| Total non-interest expense | 14,234 | 15,792 | (9.9 | ) | 55,427 | 60,477 | (8.4 | ) | ||||||||||||||||
| Income (loss) before income tax expense | 3,136 | 6,992 | (55.1 | ) | 14,091 | 11,866 | 18.8 | |||||||||||||||||
| Income tax expense (benefit) | 1,007 | 2,510 | (59.9 | ) | 4,658 | 3,709 | 25.6 | |||||||||||||||||
| Net income (loss) | $ | 2,129 | $ | 4,482 | (52.5 | ) | $ | 9,433 | $ | 8,157 | 15.6 | |||||||||||||
| Basic and diluted earnings (loss) per share | $ | 0.45 | $ | 0.96 | $ | 2.00 | $ | 1.74 | ||||||||||||||||
| Cash dividends declared per share | 0.26 | 0.26 | 1.04 | 1.04 | ||||||||||||||||||||
| Average basic and diluted shares outstanding | 4,730,806 | 4,690,519 | 4,719,278 | 4,683,067 | ||||||||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||||||
| Consolidated Financial Highlights (Unaudited) | ||||||||||||||||||||||||||||
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except share and per share data) | 2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
| Interest income | $ | 13,896 | $ | 13,595 | $ | 13,519 | $ | 13,234 | $ | 13,922 | $ | 54,244 | $ | 53,213 | ||||||||||||||
| Interest expense | 934 | 904 | 872 | 892 | 888 | 3,602 | 3,645 | |||||||||||||||||||||
| Net interest income | 12,962 | 12,691 | 12,647 | 12,342 | 13,034 | 50,642 | 49,568 | |||||||||||||||||||||
| Provision for loan losses | 615 | 307 | 259 | 390 | 1,650 | 1,571 | 3,981 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 12,347 | 12,384 | 12,388 | 11,952 | 11,384 | 49,071 | 45,587 | |||||||||||||||||||||
| Non-interest income | 5,023 | 4,912 | 5,326 | 5,186 | 11,400 | 20,447 | 26,756 | |||||||||||||||||||||
| Non-interest expense | 14,234 | 13,634 | 13,823 | 13,736 | 15,792 | 55,427 | 60,477 | |||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 3,136 | 3,662 | 3,891 | 3,402 | 6,992 | 14,091 | 11,866 | |||||||||||||||||||||
| Income tax expense (benefit) | 1,007 | 1,211 | 1,314 | 1,126 | 2,510 | 4,658 | 3,709 | |||||||||||||||||||||
| Net income (loss) | $ | 2,129 | $ | 2,451 | $ | 2,577 | $ | 2,276 | $ | 4,482 | $ | 9,433 | $ | 8,157 | ||||||||||||||
| Basic and diluted earnings (loss) per share | $ | 0.45 | $ | 0.52 | $ | 0.55 | $ | 0.48 | $ | 0.96 | $ | 2.00 | $ | 1.74 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,730,806 | 4,722,449 | 4,716,734 | 4,706,774 | 4,690,519 | 4,719,278 | 4,683,067 | |||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
| Return on average assets | 0.52 | % | 0.62 | % | 0.66 | % | 0.59 | % | 1.17 | % | 0.60 | % | 0.54 | % | ||||||||||||||
| Return on average equity | 6.05 | % | 7.05 | % | 7.52 | % | 6.79 | % | 12.54 | % | 6.84 | % | 5.74 | % | ||||||||||||||
| Return on average tangible equity (a) | 7.42 | % | 8.71 | % | 9.32 | % | 8.45 | % | 15.49 | % | 8.45 | % | 7.12 | % | ||||||||||||||
| Efficiency ratio (b) | 77.35 | % | 75.25 | % | 75.83 | % | 76.26 | % | 85.10 | % | 76.18 | % | 78.75 | % | ||||||||||||||
| Non-interest expense to average assets (c) | 3.49 | % | 3.44 | % | 3.55 | % | 3.57 | % | 4.11 | % | 3.51 | % | 3.73 | % | ||||||||||||||
| Loans to deposits | 83.46 | % | 80.96 | % | 86.37 | % | 83.59 | % | 87.62 | % | 83.46 | % | 87.62 | % | ||||||||||||||
| YIELDS / RATES - Fully Taxable Equivalent | ||||||||||||||||||||||||||||
| Yield on loans | 4.20 | % | 4.22 | % | 4.26 | % | 4.28 | % | 4.49 | % | 4.24 | % | 4.43 | % | ||||||||||||||
| Yield on investments | 1.98 | % | 1.89 | % | 1.91 | % | 1.83 | % | 1.98 | % | 1.91 | % | 1.98 | % | ||||||||||||||
| Yield on interest-earning assets | 3.66 | % | 3.70 | % | 3.74 | % | 3.74 | % | 3.96 | % | 3.71 | % | 3.85 | % | ||||||||||||||
| Cost of interest-bearing deposits | 0.20 | % | 0.20 | % | 0.21 | % | 0.20 | % | 0.21 | % | 0.20 | % | 0.22 | % | ||||||||||||||
| Cost of borrowings | 2.99 | % | 3.03 | % | 2.64 | % | 2.74 | % | 2.65 | % | 2.85 | % | 2.83 | % | ||||||||||||||
| Cost of interest-bearing liabilities | 0.35 | % | 0.35 | % | 0.34 | % | 0.35 | % | 0.36 | % | 0.35 | % | 0.37 | % | ||||||||||||||
| Interest rate spread | 3.31 | % | 3.35 | % | 3.40 | % | 3.39 | % | 3.60 | % | 3.36 | % | 3.48 | % | ||||||||||||||
| Net interest margin, fully taxable equivalent | 3.42 | % | 3.45 | % | 3.50 | % | 3.49 | % | 3.71 | % | 3.46 | % | 3.59 | % | ||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Total equity to total assets at end of period | 8.47 | % | 8.50 | % | 8.79 | % | 8.60 | % | 8.77 | % | 8.47 | % | 8.77 | % | ||||||||||||||
| Tangible equity to tangible assets at end of period (a) | 6.99 | % | 7.02 | % | 7.22 | % | 7.04 | % | 7.13 | % | 6.99 | % | 7.13 | % | ||||||||||||||
| Book value per share | $ | 28.96 | $ | 29.36 | $ | 28.92 | $ | 28.92 | $ | 28.44 | $ | 28.96 | $ | 28.44 | ||||||||||||||
| Tangible book value per share | 23.53 | 23.85 | 23.35 | 23.28 | 22.71 | 23.53 | 22.71 | |||||||||||||||||||||
| Period-end market value per share | 27.50 | 28.03 | 26.48 | 28.30 | 27.66 | 27.50 | 27.66 | |||||||||||||||||||||
| Dividends declared per share | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 1.04 | 1.04 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Loans (d) | $ | 1,151,469 | $ | 1,142,402 | $ | 1,141,412 | $ | 1,132,473 | $ | 1,112,297 | $ | 1,141,992 | $ | 1,066,379 | ||||||||||||||
| Earning assets | 1,522,176 | 1,474,098 | 1,462,842 | 1,450,249 | 1,410,804 | 1,477,529 | 1,399,285 | |||||||||||||||||||||
| Total assets | 1,617,322 | 1,570,818 | 1,563,346 | 1,558,919 | 1,522,834 | 1,577,831 | 1,506,324 | |||||||||||||||||||||
| Deposits | 1,410,017 | 1,367,853 | 1,353,895 | 1,338,913 | 1,307,305 | 1,367,717 | 1,297,443 | |||||||||||||||||||||
| Total equity | 139,697 | 137,855 | 137,386 | 135,974 | 141,845 | 137,891 | 142,046 | |||||||||||||||||||||
| Tangible equity (a) | 113,812 | 111,693 | 110,945 | 109,219 | 114,786 | 111,583 | 114,492 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Net charge-offs | $ | 377 | $ | 313 | $ | 123 | $ | 184 | $ | 1,116 | $ | 997 | $ | 3,071 | ||||||||||||||
| Non-performing loans (e) | 12,223 | 12,368 | 12,862 | 10,419 | 7,778 | 12,223 | 7,778 | |||||||||||||||||||||
| Non-performing assets (f) | 13,753 | 14,744 | 15,238 | 12,925 | 10,843 | 13,753 | 10,843 | |||||||||||||||||||||
| Allowance for loan losses | 14,260 | 14,022 | 14,028 | 13,892 | 13,686 | 14,260 | 13,686 | |||||||||||||||||||||
| Annualized net charge-offs to average loans | 0.13 | % | 0.11 | % | 0.04 | % | 0.07 | % | 0.40 | % | 0.09 | % | 0.29 | % | ||||||||||||||
| Non-performing loans to total loans | 1.05 | % | 1.08 | % | 1.12 | % | 0.91 | % | 0.69 | % | 1.05 | % | 0.69 | % | ||||||||||||||
| Non-performing assets to total assets | 0.85 | % | 0.90 | % | 0.98 | % | 0.82 | % | 0.71 | % | 0.85 | % | 0.71 | % | ||||||||||||||
| Allowance for loan losses to total loans | 1.22 | % | 1.23 | % | 1.22 | % | 1.21 | % | 1.22 | % | 1.22 | % | 1.22 | % | ||||||||||||||
| Allowance for loan losses to non-performing loans | 116.67 | % | 113.37 | % | 109.07 | % | 133.33 | % | 175.96 | % | 116.67 | % | 175.96 | % | ||||||||||||||
| (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 settlement 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 6-7. 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 | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT | ||||||||||||||||||||||||||||
| AND EFFICIENCY RATIO | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 12,962 | $ | 12,691 | $ | 12,647 | $ | 12,342 | $ | 13,034 | $ | 50,642 | $ | 49,568 | ||||||||||||||
| Fully taxable equivalent adjustment | 149 | 136 | 133 | 136 | 148 | 554 | 650 | |||||||||||||||||||||
| Fully taxable equivalent net interest income (non-GAAP) | $ | 13,111 | $ | 12,827 | $ | 12,780 | $ | 12,478 | $ | 13,182 | $ | 51,196 | $ | 50,218 | ||||||||||||||
| Non-interest income (GAAP) | $ | 5,023 | $ | 4,912 | $ | 5,326 | $ | 5,186 | $ | 11,400 | $ | 20,447 | $ | 26,756 | ||||||||||||||
| Less: net gains (losses) on security transactions | (81 | ) | 11 | (252 | ) | (50 | ) | (6,347 | ) | (372 | ) | (6,869 | ) | |||||||||||||||
| Less: recoveries from other-than-temporary impairments | - | - | - | - | (50 | ) | - | (515 | ) | |||||||||||||||||||
| Adjusted non-interest income (non-GAAP) | $ | 4,942 | $ | 4,923 | $ | 5,074 | $ | 5,136 | $ | 5,003 | $ | 20,075 | $ | 19,372 | ||||||||||||||
| Non-interest expense (GAAP) | $ | 14,234 | $ | 13,634 | $ | 13,823 | $ | 13,736 | $ | 15,792 | $ | 55,427 | $ | 60,477 | ||||||||||||||
| Less: merger and acquisition expenses | - | - | - | - | - | - | (115 | ) | ||||||||||||||||||||
| Less: amortization of intangible assets | (270 | ) | (277 | ) | (285 | ) | (304 | ) | (317 | ) | (1,136 | ) | (1,310 | ) | ||||||||||||||
| Less: legal settlements | - | - | - | - | - | - | (4,250 | ) | ||||||||||||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 13,964 | $ | 13,357 | $ | 13,538 | $ | 13,432 | $ | 15,475 | $ | 54,291 | $ | 54,802 | ||||||||||||||
| Average interest-earning assets (GAAP) | $ | 1,522,176 | $ | 1,474,098 | $ | 1,462,842 | $ | 1,450,249 | $ | 1,410,804 | $ | 1,477,529 | $ | 1,399,285 | ||||||||||||||
| Net interest margin - fully taxable equivalent (non-GAAP) | 3.42 | % | 3.45 | % | 3.50 | % | 3.49 | % | 3.71 | % | 3.46 | % | 3.59 | % | ||||||||||||||
| Efficiency ratio (non-GAAP) | 77.35 | % | 75.25 | % | 75.83 | % | 76.26 | % | 85.10 | % | 76.18 | % | 78.75 | % | ||||||||||||||
| 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 | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except per share and ratio data) | 2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| TANGIBLE EQUITY AND TANGIBLE ASSETS | ||||||||||||||||||||||||||||
| (PERIOD END) | ||||||||||||||||||||||||||||
| Total shareholders' equity (GAAP) | $ | 137,242 | $ | 138,715 | $ | 136,520 | $ | 136,293 | $ | 133,628 | $ | 137,242 | $ | 133,628 | ||||||||||||||
| Less: intangible assets | (25,755 | ) | (26,025 | ) | (26,302 | ) | (26,587 | ) | (26,891 | ) | (25,755 | ) | (26,891 | ) | ||||||||||||||
| Tangible equity (non-GAAP) | $ | 111,487 | $ | 112,690 | $ | 110,218 | $ | 109,706 | $ | 106,737 | $ | 111,487 | $ | 106,737 | ||||||||||||||
| Total assets (GAAP) | $ | 1,619,926 | $ | 1,631,639 | $ | 1,553,633 | $ | 1,584,772 | $ | 1,524,539 | $ | 1,619,926 | $ | 1,524,539 | ||||||||||||||
| Less: intangible assets | (25,755 | ) | (26,025 | ) | (26,302 | ) | (26,587 | ) | (26,891 | ) | (25,755 | ) | (26,891 | ) | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 1,594,171 | $ | 1,605,614 | $ | 1,527,331 | $ | 1,558,185 | $ | 1,497,648 | $ | 1,594,171 | $ | 1,497,648 | ||||||||||||||
| Total equity to total assets at end of period (GAAP) | 8.47 | % | 8.50 | % | 8.79 | % | 8.60 | % | 8.77 | % | 8.47 | % | 8.77 | % | ||||||||||||||
| Book value per share (GAAP) | $ | 28.96 | $ | 29.36 | $ | 28.92 | $ | 28.92 | $ | 28.44 | $ | 28.96 | $ | 28.44 | ||||||||||||||
| Tangible equity to tangible assets at | ||||||||||||||||||||||||||||
| end of period (non-GAAP) | 6.99 | % | 7.02 | % | 7.22 | % | 7.04 | % | 7.13 | % | 6.99 | % | 7.13 | % | ||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 23.53 | $ | 23.85 | $ | 23.35 | $ | 23.28 | $ | 22.71 | $ | 23.53 | $ | 22.71 | ||||||||||||||
| 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 | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except ratio data) | 2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| TANGIBLE EQUITY (AVERAGE) | ||||||||||||||||||||||||||||
| Total average shareholders' equity (GAAP) | $ | 139,697 | $ | 137,855 | $ | 137,386 | $ | 135,974 | $ | 141,845 | $ | 137,891 | $ | 142,046 | ||||||||||||||
| Less: average intangible assets | (25,885 | ) | (26,162 | ) | (26,441 | ) | (26,755 | ) | (27,059 | ) | (26,308 | ) | (27,554 | ) | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 113,812 | $ | 111,693 | $ | 110,945 | $ | 109,219 | $ | 114,786 | $ | 111,583 | $ | 114,492 | ||||||||||||||
| Return on average equity (GAAP) | 6.05 | % | 7.05 | % | 7.52 | % | 6.79 | % | 12.54 | % | 6.84 | % | 5.74 | % | ||||||||||||||
| Return on average tangible equity (non-GAAP) | 7.42 | % | 8.71 | % | 9.32 | % | 8.45 | % | 15.49 | % | 8.45 | % | 7.12 | % | ||||||||||||||
| 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 | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except share, per share and ratio data) | 2015 | 2015 | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| CORE NET INCOME | ||||||||||||||||||||||||||||
| Reported net income (loss) (GAAP) | $ | 2,129 | $ | 2,451 | $ | 2,577 | $ | 2,276 | $ | 4,482 | $ | 9,433 | $ | 8,157 | ||||||||||||||
| Net gains (losses) on security transactions (net of tax) | (50 | ) | 7 | (156 | ) | (31 | ) | (3,907 | ) | (230 | ) | (4,229 | ) | |||||||||||||||
| Legal settlements (net of tax) | - | - | - | - | - | - | 2,617 | |||||||||||||||||||||
| Merger and acquisition related expenses (net of tax) | - | - | - | - | - | - | 71 | |||||||||||||||||||||
| Core net income (non-GAAP) | $ | 2,079 | $ | 2,458 | $ | 2,421 | $ | 2,245 | $ | 575 | $ | 9,203 | $ | 6,616 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,730,806 | 4,722,449 | 4,716,734 | 4,706,774 | 4,690,519 | 4,719,278 | 4,683,067 | |||||||||||||||||||||
| Reported basic and diluted earnings (loss) per share (GAAP) | $ | 0.45 | $ | 0.52 | $ | 0.55 | $ | 0.48 | $ | 0.96 | $ | 2.00 | $ | 1.74 | ||||||||||||||
| Reported return on average assets (GAAP) | 0.52 | % | 0.62 | % | 0.66 | % | 0.59 | % | 1.17 | % | 0.60 | % | 0.54 | % | ||||||||||||||
| Reported return on average equity (GAAP) | 6.05 | % | 7.05 | % | 7.52 | % | 6.79 | % | 12.54 | % | 6.84 | % | 5.74 | % | ||||||||||||||
| Core basic and diluted earnings per share (non-GAAP) | $ | 0.44 | $ | 0.52 | $ | 0.51 | $ | 0.48 | $ | 0.12 | $ | 1.95 | $ | 1.41 | ||||||||||||||
| Core return on average assets (non-GAAP) | 0.51 | % | 0.62 | % | 0.62 | % | 0.58 | % | 0.15 | % | 0.58 | % | 0.44 | % | ||||||||||||||
| Core return on average equity (non-GAAP) | 5.90 | % | 7.07 | % | 7.07 | % | 6.70 | % | 1.61 | % | 6.67 | % | 4.66 | % | ||||||||||||||
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 2014 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.
For further information contact:
Karl F. Krebs, EVP and CFO
kkrebs@chemungcanal.com
Phone: 607-737-3714