Chemung Financial Corporation Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2014; Reports Net Charge-Offs for the Fourth Quarter of 2014
January 30, 2015 at 02:43 am IST
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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.
Chemung Financial Corporation is a financial services holding company. The Company operates about 31 offices through its principal subsidiary, Chemung Canal Trust Company (the Bank), a full-service community bank. The Company is also the parent company of CFS Group, Inc., a financial services subsidiary offering non-traditional services, including mutual funds, annuities, brokerage services, tax preparation services and insurance. The Company, through the Bank and CFS, provides a range of financial services, including demand, savings and time deposits, commercial, residential and consumer loans, interest rate swaps, letters of credit, wealth management services, employee benefit plans, insurance products, mutual funds and brokerage services. Its core banking segment attracts deposits from the general public and uses such funds to originate consumer, commercial, commercial real estate, and other loans. Its WMG services segment offers trust and investment advisory services to clients.
Chemung Financial Corporation Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2014; Reports Net Charge-Offs for the Fourth Quarter of 2014