ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG), parent company of Chemung Canal Trust Company, recently reported that its net income fell 44 percent to $2.5 million, or 51 cents a share, in the first quarter, from $4.5 million, or 92 cents, in the year-ago period. The banking company said its results were hurt by the […]
ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG), parent company of Chemung Canal Trust Company, recently reported that its net income fell 44 percent to $2.5 million, or 51 cents a share, in the first quarter, from $4.5 million, or 92 cents, in the year-ago period.
The banking company said its results were hurt by the COVID-19 pandemic and resulting business shutdowns.
“The states of emergencies declared nationally, as well as in New York and Pennsylvania, have prompted the temporary closure of non-essential businesses, resulting in layoffs, furloughs, or terminations of employees. Many of the impacted individuals and businesses are our clients,” Anders M. Tomson, president and CEO of Chemung Financial, said in the company’s May 4 earnings report. “In an effort to mitigate the long-term financial impact to our company resulting from the COVID-19 pandemic’s effects, we have been continuously and carefully evaluating the conditions contributing to this financial uncertainty, and we have been responsive and focused in the application of our resources. This includes evaluating our allowance and increasing our provision for loan losses, participating in the Paycheck Protection Program for the benefit our communities and customers, and providing our employees, a safe work environment.”
Chemung Financial boosted its provision for loan losses to $3.1 million in the first quarter, of which $2.7 million was related to its identification of COVID-19-related credit risks. The provision was up from the $1.1 million it recorded in the prior-year quarter.
The banking company said it expects the COVID-19 crisis to continue to impact its financial results, as well as demand for its services and products during the second quarter of 2020 and possibly beyond. “The short-and long-term implications of the COVID-19 crisis, and related monetary and fiscal stimulus measures on the corporation’s future revenues, earnings results, allowance for loan losses, capital reserves, and liquidity are uncertain at this time,” it said.
Chemung Financial is a $1.84 billion financial-services holding company that operates 33 branches through Chemung Canal Trust, a community bank with trust powers that was started in 1833. Chemung Financial is also parent of CFS Group, Inc., a financial-services subsidiary offering mutual funds, annuities, brokerage services, tax-preparation services, and insurance. Chemung Risk Management, Inc., an insurance company based in Nevada, is another subsidiary.