ELMIRA — Chemung Financial Corp., parent company of Chemung Canal Trust Co., reported that its first-quarter net income fell 33 percent to $2.4 million, or 52 cents a share, from $3.6 million, or 78 cents, in the year-ago period as both net interest and noninterest income declined. Low interest rates helped squeeze net interest margin […]
ELMIRA — Chemung Financial Corp., parent company of Chemung Canal Trust Co., reported that its first-quarter net income fell 33 percent to $2.4 million, or 52 cents a share, from $3.6 million, or 78 cents, in the year-ago period as both net interest and noninterest income declined.
Low interest rates helped squeeze net interest margin at Chemung Financial (NASDAQ: CHMG) down to 4.07 percent in the latest quarter from 4.29 percent in the first quarter of 2012.
“We are pleased that our financial performance remains strong despite the expected pressure on our net interest margin due to record low interest rates,” Ronald M. Bentley, president and CEO, said in a news release.
Chemung Financial had assets totaling $1.28 billion as of March 31, up from $1.25 billion as of Dec. 31, 2012 as it generated increases in loans, including commercial loans.
Net interest income for the first quarter totaled $11.7 million, down almost 3 percent from $12 million a year ago, but up almost 1 percent from $11.6 million for the preceding quarter ended Dec. 31, 2012. Chemung Financial’s shrinking net interest margin was primarily due to interest rates on its interest-earning loans falling at a faster rate than the cost of its interest-bearing deposits
Non-interest income fell almost 18 percent to $4 million in the first quarter from $4.9 million a year ago. The decline was primarily due to a reduction of $800,000 in casualty gains from insurance reimbursements, the banking company said.
Chemung Financial’s non-interest expense in the first quarter totaled $11.7 million, up more than 7 percent from $10.9 million in the year-earlier quarter, led by increases in salaries and wages, professional services, and pension and other employee benefits. Non-interest expense in the latest quarter, however, was down over 7 percent from $12.6 million in the preceding quarter ended Dec. 31. The decrease was primarily due to declines in salaries and wages and professional services, the banking company said.
Non-performing loans totaled $16.8 million on March 31, or 1.82 percent of total loans, up slightly from $15.9 million, or 1.78 percent, on Dec. 31. Non-performing assets, which are comprised of non-performing loans and other real estate that Chemung Financial owns, totaled $17.4 million, or 1.36 percent of total assets, on March 31. That’s up from $16.4 million, or 1.32 percent, on Dec. 31.
The market value of total assets under management or administration in Chemung Financial’s Wealth Management Group was $1.833 billion as of March 31, compared with $1.735 billion as of Dec. 31, 2012 and $1.704 billion on March 31, 2012.
Chemung Financial is a financial-services holding company, headquartered in Elmira, that operates 28 branch offices through its main subsidiary, Chemung Canal Trust Co., a full-service community bank with trust powers.
Established in 1833, Chemung Canal Trust says it is the oldest locally owned and managed community bank in New York state. Chemung Financial is also the parent of CFS Group, Inc., a financial-services subsidiary offering mutual funds, annuities, brokerage services, tax-preparation services, and insurance.
Contact Rombel at arombel@cnybj.com