Chemung Financial Corporation reported unaudited consolidated financial results for the fourth quarter and year ended December 31, 2014. For the year, total interest and dividend income was $53,213,000 against $50,663,000 for the same period of last year. Net interest income was $49,568,000 against $46,631,000 for the same period of last year. Income before income tax expense was $12,519,000 against $12,553,000 for the same period of last year. Net income was $8,559,000 against $8,731,000 for the same period of last year. Basic and diluted earnings per share were $1.83 against $1.87 for the same period of last year. Return on average assets was 0.57% against 0.67% for the same period of last year. Return on average equity was 6.03% against 6.50% for the same period of last year. Core net income was $7.0 million, or $1.50 per share, compared with $9.1 million, or $1.96 per share, for the year ended December 31, 2014. The current year core net income excluded the pre-tax net gain on securities transactions of $6.9 million, the $4.3 million accrual for legal settlement during the third quarter of 2014, regarding two legal proceedings involving the Bank's Wealth Management Group, and $0.1 million in acquisition expenses. The prior year core net income excluded pre-tax acquisition expenses of $1.4 million and the $0.5 million gain from bargain purchase related to the acquisition of branch offices. The decline in core net income was due primarily to increases of $8.1 million in non-interest expense and $0.6 million in provision for loan losses, partially offset by increases of $2.9 million in net interest income and $2.3 million in non-interest income, and a reduction of $1.4 million in income taxes. Core return on average assets and core return on average equity for the year ended December 31, 2014 were 0.47% and 4.94%, respectively, compared with 0.70% and 6.79%, respectively, for the prior year.

For the quarter, total interest and dividend income was $13,922,000 against $13,073,000 for the same period of last year. Net interest income was $13,034,000 against $12,070,000 for the same period of last year. Income before income tax expense was $7,645,000 against $1,828,000 for the same period of last year. Net income was $4,884,000 against $1,485,000 for the same period of last year. Basic and diluted earnings per share were $1.04 against $0.32 for the same period of last year. Return on average assets was 1.27% against 0.42% for the same period of last year. Return on average equity was 13.66% against 4.33% for the same period of last year. Core net income was $1.0 million, or $0.21 per share, compared with $1.7 million, or $0.37 per share, for the same period in the prior year. Core net income for the fourth quarter of 2014 excluded pre-tax security gains of $6.4 million, while the fourth quarter of 2013 excluded pre-tax acquisition expenses of $1.2 million and the $0.5 million gain from bargain purchase related to the acquisition of branch offices. The decrease in core net income was due primarily to an increase of $2.5 million in non-interest expense, partially offset by increases in net interest income and non-interest income of $0.9 million and $0.3 million, respectively. Core return on average assets and core return on average equity for the fourth quarter of 2014 were 0.25% and 2.73%, respectively, compared with 0.49% and 5.09%, respectively, for the same period in the prior year. Book value per share was $25.52 at December 31, 2014 compared with $29.67 at December 31, 2013. Tangible book value per share was $22.80 at December 31, 2014 compared with $23.63 at December 31, 2013.


Net charge-offs for the fourth quarter of 2014 were $1.1 million compared with $0.1 million for the same period a year ago. The net charge-offs for the current quarter were due primarily to an acquired purchase-credit-impaired commercial loan.