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Visions expects early 2021 opening for new Ithaca branch
ITHACA — Construction is moving along on the upcoming Ithaca branch of Visions Federal Credit Union. The new office — located at 410 Elmira Road, near Home Depot and Kohl’s — is expected to open in early 2021. Pittsburgh, Pennsylvania–based PWCampbell designed and is building the new location, and Paolangeli Contractors, Inc. of Ithaca handled […]
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ITHACA — Construction is moving along on the upcoming Ithaca branch of Visions Federal Credit Union.
The new office — located at 410 Elmira Road, near Home Depot and Kohl’s — is expected to open in early 2021.
Pittsburgh, Pennsylvania–based PWCampbell designed and is building the new location, and Paolangeli Contractors, Inc. of Ithaca handled the site-work preparation, Visions tells CNYBJ. Rochester–based Costich Engineering is also involved in the project.
Visions declined to disclose the project cost.
The Endwell–based credit union first announced the initiative in July 2019. The new Ithaca branch will allow individuals and businesses to access banking services, apply for loans, and work with experts in investments, Medicare benefits, and insurance.
In addition to the retail space, Visions is also creating an outdoor amphitheater for special events and concerts.
Visions says it has “hundreds” of members in the Ithaca area and hopes “that number grows with its new presence.”
“We’re friends, neighbors, and community builders. We employ local people and partner with local businesses, which allows us to return the benefits to our members,” Ty Muse, president and CEO of Visions Federal Credit Union, said in a news release. “Members not only support the credit-union model, they also indirectly benefit the community.”
Established in 1966, the nonprofit Visions Federal Credit Union serves more than 210,000 members in communities throughout New York, New Jersey, and Pennsylvania.
Chemung Financial profit jumps in 3rd quarter
ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG), parent company of Chemung Canal Trust Company, recently reported that its net income soared to $5.7 million, or $1.19 per share, in the third quarter from $2 million, or 40 cents, in the year-ago period. “Third quarter results included a 4.8 percent increase in net interest income and
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ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG), parent company of Chemung Canal Trust Company, recently reported that its net income soared to $5.7 million, or $1.19 per share, in the third quarter from $2 million, or 40 cents, in the year-ago period.
“Third quarter results included a 4.8 percent increase in net interest income and a 1.2 percent reduction in non-interest expenses, when compared to the third quarter of last year,” Anders M. Tomson, president and CEO of Chemung Financial, said in the banking company’s earnings report. “Our efficiency ratio continued to improve throughout the year as did our non-interest expense to average assets ratio, reinforcing our continued focus on expense management. We have remained committed to supporting our clients as they navigate these uncertain times, pivoting to assist as they begin the SBA’s loan forgiveness application process… Our company is well-positioned from a capital and liquidity perspective to provide the necessary stability to our customers and communities as they work toward renewal and recovery.”
Chemung Financial generated net interest income of $15.9 million in the third quarter, up from $15.1 million a year prior, due mainly to increases of about $200,000 in interest income on loans, including fees, about $100,000 in interest and dividend income on taxable securities, and a decrease of about $800,000 in total interest expense. That was offset by a decrease of roughly $400,000 in interest income on interest-earning deposits.
The increase in loan income resulted from a rise of about $400,000 in interest income on commercial loans, primarily attributable to a $210 million increase in average balances on commercial loans and receipt of $1.2 million of Paycheck Protection Program (PPP) loan fees. That was offset by a decrease in portfolio average yield due to a decrease in interest rates. Interest income on mortgage loans increased by about $300,000 primarily due to a rise of more than $36 million in average balances on mortgage loans. These increases were also offset by a decrease of about $500,000 in interest income on consumer loans, which can be attributed to both decreases in average balances and average portfolio yield on consumer loans.
The increase in interest and dividend income on taxable securities was due mainly to an increase in average invested balances of $67 million. The decrease in interest income on interest-earning deposits was due mainly to the sharp drop in interest rates on overnight deposits with the average yield on interest-earning deposits declining from 2.22 percent in the third quarter of 2019 to 0.31 percent in this year’s third quarter. The drop in interest expense on deposits was due primarily to the decreases in average interest rates paid on interest-bearing checking, savings, and money-market products in response to the Federal Reserve’s large interest-rate cuts in March.
Chemung Financial posted a net interest margin of 3.2 percent in this year’s third quarter, compared to 3.63 percent in the same quarter last year. Average interest-earning assets increased by more than $320 million in the third quarter, compared to the same period last year. The average yield on interest-earning assets decreased 66 basis points in the third quarter, while the average cost of interest-bearing liabilities fell by 34 basis points, compared to a year earlier.
The banking company took a provision for loan losses totaling about $700,000 in the third quarter, down from $4.4 million in the third quarter of 2019. It said this decrease was primarily due to a $4.2 million commercial credit exposure it faced in the year-ago quarter that it did not have this year.
Chemung Financial produced non-interest income $5.3 million in this year’s third quarter, up almost 8 percent from $5 million for the same period in in 2019.
Non-interest expense in the latest quarter fell slightly to $13.4 million from $13.5 million in the year-ago quarter, led by decreases in pension and other employee benefits, as well as other non-interest expenses — offset by an increase in FDIC insurance costs.
Non-performing loans totaled nearly $16 million at Chemung Financial as of Sept. 30, or 1.02 percent of total loans, compared to $18 million as of last Dec. 31, or 1.38 percent of total loans. The decrease in non-performing loans can mostly be attributed to the charge-off of one large commercial mortgage in the second quarter of 2020.
Chemung Financial explained that as its management evaluated the potential impact of the COVID-19 pandemic on its loan portfolio, management identified what it believes are higher-risk loans through a detailed analysis of industry codes. The banking company determined that an additional provision specifically related to the COVID-19 pandemic was not necessary in the third quarter.
Chemung Financial had total assets of nearly $2.2 billion as of Sept. 30, up 21 percent from $1.8 billion at the end of 2019. The banking company attributed the rise mainly to increases of $229 million in loans, net of deferred fees, $112 million in securities available for sale, at estimated fair value, $18 million in interest-earning deposits in other financial institutions, and $10 million in accrued interest receivable and other assets. That was partially offset by an increase of more than $1 million in allowance for loan losses. The increase in loans was due primarily to the growth of $216 million in commercial loans and $39 million in residential mortgages, offset by a decrease of almost $26 million in consumer loans. Chemung Financial said almost $190 million of the increase in loans was related to the PPP.
On or about Nov. 20, Chemung Canal Trust Company will consolidate two branches, reducing its total from 32 to 30. The Big Flats branch at 437 Maple St. will be consolidated into the nearby office at 29 Arnot Road, Horseheads. The branch located at 1054 State Route 17C in Owego will be consolidated into the nearby branch office at 203 Main St. in Owego.
Established in 1833, Chemung Canal Trust says it is the oldest, locally owned and managed community bank in New York. Chemung Financial is also parent of CFS Group, Inc., a financial-services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax-preparation services and insurance, and Chemung Risk Management, Inc., an insurance company based in Nevada.
NCUA board approves rules on derivatives, corporate credit- union regulation
The board of directors of the National Credit Union Administration (NCUA) on Oct. 15 held its monthly meeting, unanimously approving a proposed rule on derivatives and a final rule regarding corporate credit unions. The group also heard a cybersecurity briefing. Details on the NCUA board meeting were posted on the Oct. 16 New York Minute
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The board of directors of the National Credit Union Administration (NCUA) on Oct. 15 held its monthly meeting, unanimously approving a proposed rule on derivatives and a final rule regarding corporate credit unions.
The group also heard a cybersecurity briefing.
Details on the NCUA board meeting were posted on the Oct. 16 New York Minute blog of the New York Credit Union Association.
Derivatives rule
The proposed rule would modernize the NCUA’s derivatives rule and make it more “principles-based” and allow “more flexibility” for federal credit unions to manage their interest-rate risk through these financial instruments, according to the Alexandria, Virginia–based NCUA.
The proposed changes include eliminating the pre-approval process for federal credit unions that are complex with a management CAMEL component rating of one or two.
CAMEL is a rating system that’s short for capital adequacy, asset quality, management, earnings, and liquidity.
They also include eliminating the specific product permissibility and removing the regulatory limits on the number of derivatives a federal credit union may purchase.
Comments on the proposed derivatives rule will be accepted for 60 days following publication in the Federal Register, NCUA said.
Corporate credit unions
The final rule regarding corporate credit unions “updates and simplifies” provisions of the NCUA’s corporate credit-union regulation.
Those provisions include permitting a corporate credit union to make a minimal investment in a credit-union service organization (CUSO) without classification for the CUSO as a corporate CUSO under the NCUA’s rules.
They also include expanding the categories of senior staff positions at member credit unions eligible to serve on a corporate credit union’s board and amending the minimum experience and independence requirement for a corporate credit union’s enterprise risk-management expert.
Comments on the final corporate credit-union rule will be accepted for 30 days following publication in the Federal Register, NCUA said.
Cybersecurity briefing
The board also received a briefing on cybersecurity considerations during the COVID-19 pandemic.
It included a warning that throughout the COVID-19 pandemic, the financial-services industry — including credit unions — remains a “major target” for hackers and thieves who are adapting their techniques to take advantage of an increased use of remote operations.
The special advisor to the chairman for cybersecurity said that boards of directors play a “critical role” in strengthening their institution’s cyber-preparedness levels, and as they evaluate their institution’s information-security programs, they should evaluate their responses to four questions.
First, have business impact and business-process scenarios been reviewed and revised in the continuity plans based on the operating conditions of COVID-19?
Second, how are policies and procedures related to remote access being strengthened to address the heightened risks created by employees working from home?
Third, has the incident-management plan been updated for leadership and employees in a remote working environment?
And fourth, how is the business changing its strategic priorities in the short, mid, and long term to address the potential change to norms?
The cybersecurity briefing and a cybersecurity resources webpage are both available on the NCUA website: ncua.gov.
AmeriCU names new chief experience officer
ROME — AmeriCU Credit Union has hired a new chief experience officer as the credit union celebrates seven decades of operation. The nonprofit AmeriCU serves nine counties in Central and Northern New York. The organization has grown to more than 140,000 members, 19 locations, and $2 billion in assets. AmeriCU Credit Union is headquartered in
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ROME — AmeriCU Credit Union has hired a new chief experience officer as the credit union celebrates seven decades of operation.
The nonprofit AmeriCU serves nine counties in Central and Northern New York. The organization has grown to more than 140,000 members, 19 locations, and $2 billion in assets. AmeriCU Credit Union is headquartered in Rome.
New chief experience officer
AmeriCU has hired Alissa Sykes Tulloch as its new chief experience officer.
Ron Belle, the credit union’s CEO, previously served in that role before his appointment to the organization’s top position.
“Alissa’s experience creating and executing member and employee focused initiatives, along with her passion for the credit union movement, will be a valuable asset,” Belle said in a news release. “Her knowledge and vision will help strengthen AmeriCU Credit Union’s central mission while keeping our focus on the member experience.”
Sykes Tulloch comes to AmeriCU Credit Union with more than 15 years of experience working in credit unions. She most recently worked for Sunmark Credit Union in the Capital Region in roles that included chief lending officer and most recently, chief growth officer, per her LinkedIn profile.
In her new role as chief experience officer, Sykes Tulloch will be responsible for enhancing AmeriCU’s retail and operational processes and member-delivery channels.
AmeriCU says she will work to implement improvements to the “current member experience,” allowing the credit union to continue to provide members with the right financial services for their life situation.
Anniversary certificate
The Rome Area Chamber of Commerce on Oct. 15 presented a certificate to AmeriCU in honor of the credit union’s 70th anniversary.
Adam Hovak, chairman of the Rome Area Chamber, presented the certificate to Belle at AmeriCU’s headquarters located at 1916 Black River Blvd. in Rome.
AmeriCU has served its members and their families since 1950. The organization acknowledged its anniversary as it commemorated International Credit Union Day.
Each year, credit-union members around the world come together to celebrate International Credit Union Day to raise awareness about what it means for members to have a credit union as their financial partner, per an Oct. 12 Rome Area Chamber release. This year’s theme was “Inspiring Hope for a Global Community.”
Renovation project at Syracuse Fire Department Credit Union continues
Besides the renovation project, the credit union’s board of directors in late July announced the appointment of Andrea Thune as its new CEO. Thune began her duties Aug. 3 following the retirement of then CEO Jeffrey Fragale. “After an extensive search, the board of directors is pleased to announce the appointment of Ms. Thune to
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Besides the renovation project, the credit union’s board of directors in late July announced the appointment of Andrea Thune as its new CEO. Thune began her duties Aug. 3 following the retirement of then CEO Jeffrey Fragale.
“After an extensive search, the board of directors is pleased to announce the appointment of Ms. Thune to this position. She brings a wealth of knowledge and experience to our credit union,” John Cowin, chairman of the board of directors, said.
Thune has 20 years of experience working for credit unions, serving in a variety of management capacities, particularly in lending. Her past positions include serving as director of lending at ACMG Federal Credit Union in Solvay for the last two years and as a mortgage account executive at The Summit Federal Credit Union for the 17 years before that, according to Thune’s LinkedIn profile.
She is also a certified credit union financial counselor (CCUFC) and a trustee for the New York Credit Union Foundation.
Renovation project
Crews are focusing on the building’s lobby with plans to include additional offices for more staff to meet with members in privacy, per the Sept. 30 blog post. Workers are also updating the building’s entrance and its lighting.
The project is creating a new waiting area for members, which will have new furniture and is located directly across from a new coffee station. A new check-writing station will be located near the waiting area as well, the credit union said.
The organization also installed new cash recyclers which means customer transactions will be “streamlined.”
The credit union added a second drive- thru lane to its building. It has yet to open but will allow members to “take advantage of the shorter lines and faster service,” it contends.
Brown & Brown Insurance boosts quarterly dividend by nearly 9 percent
Brown & Brown, Inc. (NYSE: BRO), the Florida–based parent of Syracuse–based Brown & Brown Empire State, recently announced that its board of directors has declared a regular quarterly cash dividend of 9.25 cents a share. The dividend is payable on Nov. 18 to shareholders of record on Nov. 4, the insurance agency said in a news
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Brown & Brown, Inc. (NYSE: BRO), the Florida–based parent of Syracuse–based Brown & Brown Empire State, recently announced that its board of directors has declared a regular quarterly cash dividend of 9.25 cents a share.
The dividend is payable on Nov. 18 to shareholders of record on Nov. 4, the insurance agency said in a news release. The dividend represents an 8.8-percent increase from Brown & Brown’s prior regular quarterly cash dividend of 8.5 cents per share. It is the 27th consecutive annual dividend increase for the company.
Brown & Brown, through its subsidiaries, offers a broad range of insurance products and related services. The firm, which makes many acquisitions of insurance agencies, generated revenue of nearly $1.3 billion in the first six months of 2020, up nearly 9 percent from the same period in 2019.
Brown & Brown Empire State is headquartered at 500 Plum St. in Syracuse’s Franklin Square area. It also has offices in Vestal, Rome, and Clifton Park, according to the firm’s website.
Summit FCU board of directors appoints new chair
Since 2019, Modesti has been the executive VP and CFO of Sweeteners Plus, LLC, a manufacturer and distributor of sugar products in Lakeville in Livingston County. Formerly president of Biomaxx, Inc., he remains on the company’s board. Modesti is also a director on the boards of Highland Hospital in Rochester and the Rochester chapter of
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Since 2019, Modesti has been the executive VP and CFO of Sweeteners Plus, LLC, a manufacturer and distributor of sugar products in Lakeville in Livingston County.
Formerly president of Biomaxx, Inc., he remains on the company’s board. Modesti is also a director on the boards of Highland Hospital in Rochester and the Rochester chapter of Financial Executives International. He is a trustee of the University of Rochester Newman Interfaith Chapel, Summit FCU said.
Modesti holds a bachelor’s degree in business management and marketing from Cornell University and an MBA degree from the William E. Simon Graduate School of Business Administration at the University of Rochester.
SBA simplifies PPP loan-forgiveness application for borrowers of $50K or less
The U.S. Small Business Administration, in consultation with the Treasury Department, recently rolled out a simpler loan-forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The application, called SBA Form 3508S, requires fewer calculations and less documentation for eligible borrowers. Perhaps most importantly, borrowers that use SBA Form 3508S are exempt from
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The U.S. Small Business Administration, in consultation with the Treasury Department, recently rolled out a simpler loan-forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
The application, called SBA Form 3508S, requires fewer calculations and less documentation for eligible borrowers. Perhaps most importantly, borrowers that use SBA Form 3508S are exempt from reductions in loan-forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. The form also does not require borrowers to show the calculations used to determine their loan forgiveness, per the SBA. However, the agency may request information and documents to review those calculations as part of its loan-review process.
The agency contends the new application streamlines the PPP forgiveness process to provide financial and administrative relief to small businesses, while still protecting taxpayer funds.
“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” U.S. Treasury Secretary Steven T. Mnuchin said in an Oct. 9 news release. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”
One local, veteran banker that works with area small businesses welcomed the forgiveness-application changes.
“That’s a big help for those companies that only borrowed $50,000 or less,” says Lee DeAmicis, regional manager of business banking at M&T Bank in Syracuse. He has been with the bank for 25 years. “It’s a simpler application to fill out. The application itself is certainly streamlined.”
DeAmicis, who spoke with CNYBJ on Oct. 20, says he hasn’t heard talk that the simplified application would also be eventually rolled out to companies who borrowed more PPP money, such as up to $150,000. Instead, there’s been more discussion that perhaps Congress will pass further legislation to forgive all loans under $150,000 as long as companies used the funds properly. “I think some small businesses will kind of delay” to see if that does happen, DeAmicis says.
M&T Bank made nearly 2,000 PPP loans in the Syracuse and Utica markets for $416 million. Of that total, about $250 million went to small businesses, with the remainder going to slightly larger companies.
The average loan amount was almost $209,000. These loans helped companies that employed 40,000 people.
Companywide, Buffalo–based M&T helped more than 35,000 small businesses receive more than $7 billion through PPP loans.
M&T Bank had already submitted more than 500 loan-forgiveness applications on behalf of clients to the SBA for approval, companywide, as of Oct. 16, according to DeAmicis. “We’ve heard that they’ve approved somewhere in the mid-200s,” he adds.
SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on Oct. 2.
The simpler loan-forgiveness application is available at https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S.pdf
The instructions for completing the streamlined loan-forgiveness application are viewable at https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S%20Instructions.pdf
CG Capital settles into new office in New Hartford
NEW HARTFORD — Financial-services firm CG Capital (formerly CoughlinGiambrone, LLC), recently announced its new office at 139 Genesee St. in New Hartford, after completing a restoration of the exterior and interior of the century-old building. The new office encompasses 3,000 square feet. CG Capital was previously situated in a 1,500-square-foot leased space at 610 French Road in
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NEW HARTFORD — Financial-services firm CG Capital (formerly CoughlinGiambrone, LLC), recently announced its new office at 139 Genesee St. in New Hartford, after completing a restoration of the exterior and interior of the century-old building.
The new office encompasses 3,000 square feet. CG Capital was previously situated in a 1,500-square-foot leased space at 610 French Road in New Hartford, the firm tells CNYBJ in an email.
CG Capital says it has been providing individuals and organizations with financial guidance since 1996. Dennis D. Coughlin and Christopher C. Giambrone are co-founders of CG Capital. The firm changed its name to shorten and simplify it, while still incorporating the initials of the founders.
CG Capital has four total employees, including two certified financial planners.
The firm on its website says its approach to financial planning is financial life planning, which takes into account clients’ “passions, values, relationships, and purpose into account” in creating customized, long-term financial plans.
Chemung Canal Trust expands lending operations into Buffalo market
ELMIRA — Chemung Canal Trust Company, a unit of Chemung Financial Corp. (NASDAQ: CHMG), announced on Oct. 21 that it will expand its lending operations to serve the City of Buffalo, as well as Erie and Niagara Counties. “I am happy to announce that the bank will be entering the Western New York market with
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ELMIRA — Chemung Canal Trust Company, a unit of Chemung Financial Corp. (NASDAQ: CHMG), announced on Oct. 21 that it will expand its lending operations to serve the City of Buffalo, as well as Erie and Niagara Counties.
“I am happy to announce that the bank will be entering the Western New York market with a dedicated lending presence,” said Anders M. Tomson, president and CEO of Elmira–based Chemung Canal Trust. “Buffalo, along with its surrounding communities, makes up the largest market in all of Upstate New York, and we are excited to extend our brand of professional, personal and high-touch lending services to the region.”
The bank says it plans on opening a loan-production office “in the near future.”
Chemung Canal Trust has hired a veteran commercial banker to spearhead its entrance into the Western New York lending market. It hired Michelle Maloney as senior VP and in-market commercial lending officer. Maloney brings more than 30 years of leadership and commercial-lending experience in the Western New York Region to the company.
Most recently, she served as senior VP and chief lending officer at the Bank of Akron.
“Michelle is a banker with a tremendous track record and reputation in Western New York,” said Tomson. “We are thrilled to have another community-minded banker on our team, and I am confident she will be an asset to both the community and our company.”
Established in 1833, Chemung Canal Trust says it is the oldest, locally owned and managed community bank in New York. Chemung Financial is also parent of CFS Group, Inc., a financial-services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax-preparation services, and insurance; and Chemung Risk Management, Inc., an insurance company based in Nevada.
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