ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG), the parent company of Chemung Canal Trust Co., reported that profit plummeted 28 percent in the fourth quarter as income fell, expenses rose, and margins narrowed.
Elmira–based Chemung Financial reported net income of $2.1 million, or 46 cents a share, in the period, down from nearly $3 million, or 64 cents, in the fourth quarter of 2011.
Net interest income dipped 3 percent to $11.6 million in the latest quarter. Noninterest income rose 4 percent to $4.2 million, but noninterest expense surged 10 percent to $12.6 million.
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Chemung Financial’s net interest margin narrowed to 3.98 percent in the fourth quarter from 4.04 percent in the third quarter and 4.19 percent in the fourth quarter of 2011. Its yield on loans slipped to 5.02 percent in the latest quarter from 5.85 percent a year ago.
The narrowing of interest-rate spreads is squeezing net interest income and profit at many community and regional banks.
For the full 2012 year, Chemung Financial reported that net income rose almost 5 percent to 11 million from $10.5 million in 2011. Earnings per share totaled $2.38 in 2012, compared to $2.40 the year before.
Chemung Financial operates 28 retail offices through its principal subsidiary, Chemung Canal Trust. Established in 1833, Chemung Canal Trust says it’s 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.
Contact Rombel at arombel@cnybj.com
