Chemung Financial nearly doubles net income in Q2

ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG) reported that its net income nearly doubled to $3 million, or 62 cents a share, in the second quarter, from $1.6 million, or 34 cents in the year-ago period.

Chemung Financial, parent company of Chemung Canal Trust Company, said it continues to see “solid growth” in revenues, earnings, loans, and deposits.

“Our return on average equity for the second quarter improved to 7.9 percent, compared to 4.57 percent for the same period in the prior year. The efficiency ratio has also improved year over year, improving from 77 percent to 69.28 percent,” Anders Tomson, CEO of Chemung Financial, said in the company’s earnings report.

Chemung Financial also completed the relocation of its branch in Auburn from 120 Genesee St. to 110 Genesee St, a move that allowed the banking company to “downsize our space by nearly two-thirds [which] will generate future cost savings for us,” according to Tomson. 

“I am excited for the remainder of the year and working with our employees to continue delivering long-term value for our shareholders, customers and the communities we serve,” he added.

Income numbers

Chemung Financial’s net interest income for the second quarter totaled $14 million compared with $13 million in the prior-year quarter, an increase of almost 8 percent. Interest and fees from loans increased by $500,000 and interest from investments, including interest-bearing deposits, increased $300,000. Meanwhile, interest expense on borrowed funds and securities sold under agreements to repurchase both decreased by $100,000 when compared to the same period in the prior year. 

The banking company’s non-interest income for the current quarter was 

$5 million compared with $5.2 million in the second quarter of 2016, a decrease of nearly 4 percent. The decline was due primarily to a $200,000 decline in other non-interest income related to rent income from other real estate owned and swap fees, the earnings report stated.

Chemung Financial’s assets totaled $1.72 billion as of June 30, compared with $1.66 billion as of Dec. 31, 2016, an increase of almost 4 percent.

The growth was due primarily to increases of 

$20.9 million in securities available for sale and $52.4 million in the loan portfolio, offset by a decrease of $9.6 million in cash and cash equivalents. 

The increase in total loans can be mostly attributed to increases of $36.2 million in commercial mortgages, $12.8 million in commercial and agriculture loans, 

$2.1 million in residential mortgages, and $1.2 million in indirect consumer loans. 

The rise in securities available for sale resulted from additional purchases of mortgage-backed and municipal securities. 

The decrease in cash and cash equivalents stems from an increase in deposits, offset by an increase in securities available for sale and total loans, according to Chemung Financial.

Elmira–based Chemung Financial operates 33 retail branch offices through its main subsidiary, Chemung Canal Trust Company. Established in 1833, Chemung Canal Trust says it is the oldest, locally owned and managed community bank in New York.