ELMIRA, N.Y. - Ronald M. Bentley, President and CEO stated, "We are very pleased with the results for the first nine months and third quarter of 2012. Net income for the nine months ended Sept. 30, 2012, was $8.9 million, or $1.92 per share, compared with $7.6 million, or $1.76 per share, for the same period in the prior year, an increase of $1.3 million, or 17.4%. We have been extremely diligent in holding the net interest margin in the 4.00% range in the current historically low interest rate environment. Net interest margin for the nine months ended Sept. 30, 2012, was 4.10% compared with 4.02% for the same period in the prior year.
Mr. Bentley continued, "Our efforts to tightly manage credit quality have proven to be successful with a non-performing assets to total assets ratio of 1.10% as of Sept. 30, 2012, down from 1.79% at Dec. 31, 2011. Also, the acquisition of Capital Bank in the Albany region has been highly profitable for us and has significantly increased the value of our banking franchise. Shareholders' equity remains strong as the tangible equity to tangible assets ratio was 8.39% at Sept. 30, 2012, compared with 8.23% at Dec. 31, 2011."
Mr. Bentley stated, "Our expansion into the Albany region has given us an excellent opportunity for loan and deposit growth. We believe we have seized upon this opportunity in the past year by experiencing strong growth in our Albany region lending portfolios."
Chemung Financial Corporation's results of operations year-to-date and quarter ended Sept. 30, 2012, are summarized below.
Chemung Financial reported net income of $8.9 million for the nine months ended Sept. 30, 2012, an increase of $1.3 million, or 17.4%, compared with $7.6 million for the nine months ended Sept. 30, 2011. The improvement was attributable to an increase of $3.3 million in net interest income, partially offset by increases of $0.9 million in non-interest expense and $0.8 million in income taxes, and a reduction of $0.3 million in non-interest income. Earnings per share for the nine months ended Sept. 30, 2012, was $1.92 compared with $1.76 for the nine months ended Sept. 30, 2011. Return on average assets and return on average equity for the nine months ended Sept. 30, 2012, were 0.95% and 9.12%, respectively, compared with 0.88% and 8.66%, respectively, for the same period in the prior year.
Year-to-date earnings improved significantly due primarily to an increase in net interest income and a $2.2 million decrease in pre-tax one-time merger transaction costs, both related to the Capital Bank acquisition in April 2011. In addition, we recognized $0.8 million in pre-tax casualty gains from insurance reimbursements related to the Sept. 2011 flooding of our Owego and Tioga offices.
Net income for the third quarter 2012 was $2.8 million compared with third quarter 2011 results of $3.3 million, a decrease of $0.5 million or 13.9%. The decline was attributable to an increase of $0.8 million in non-interest expense and a reduction of $0.4 million in net gain on securities transactions. These items were partially offset by reductions of $0.4 million in the provision for loan losses and $0.3 million in income taxes. Earnings per share for the current quarter totaled $0.61 compared with $0.71 for the same period in the prior year. Return on average assets and return on average equity for the current quarter were 0.89% and 8.53%, respectively, compared with 1.05% and 10.18%, respectively, for the third quarter of 2011.
Net income of $2.8 million for the quarter ended Sept. 30, 2012, represents an increase of $0.4 million, or 16.0%, from net income of $2.4 million for the preceding quarter ended June 30, 2012. The increase in net income was primarily due to an increase of $0.4 million in net interest income and a reduction of $0.5 million in non-interest expense. These items were partially offset by increases of $0.2 million in the provision for loan losses and $0.3 million in income taxes. Earnings per share for the current quarter totaled $0.61 compared with $0.53 for the preceding quarter. Return on average assets and return on average equity for the current quarter were 0.89% and 8.53%, respectively, compared with 0.78% and 7.55%, respectively, for the preceding quarter.
Submitted by Chemung Financial Corporation
