Chemung Financial Corp. announced unaudited earnings results for the third quarter and nine months of 2009. The company reported third quarter 2009 unaudited net income of $1.516 million compared to $2.404 million in the third quarter of 2008. Earnings per share for the quarter totaled $0.42 as compared with $0.67 a year ago. The company's third quarter earnings decrease from the corresponding period in 2008 was affected by an $850,000 increase in the provision for loan losses and $428,000 of other-than-temporary impairment charges on trust preferred securities pools carried in the Corporation's investment portfolio. These items reduced after-tax earnings by approximately $784,000 or $0.22 per share. Compared to the corresponding period in 2008, third quarter net interest income rose 6.9% to $8.535 million despite a 25 basis point decrease in the net interest margin to 3.82%. The increase in net interest income was due to a $106.6 million increase in average earning assets and a 77 basis point decline in the average cost of interest bearing liabilities, partially offset by an 84 basis point decrease in the average yield on earning assets. For the first nine months, net income totaled $3.945 million compared to $6.817 million last year, with earnings per share down from $1.90 to $1.10 per share. Net earnings for the first nine months of this year has been impacted by OTTI charges totaling $1.380 million, one-time acquisition costs related to the Corporation's acquisition of Canton Bancorp Inc. in May of this year totaling approximately $1.250 million, a $1.225 million increase in the provision for loan losses and a second quarter FDIC special assessment of $439,000. The after-tax impact of these items on year-to-date net income totaled approximately $2.633 million or $0.73 per share. Net interest income for the first nine months of this year was $1.937 million or 8.6% higher than last year, while the net interest margin was down 10 basis points to 3.91%. The increase in net interest income is attributed to an $86.1 million increase in average earning assets and an 86 basis point decrease in the cost of interest bearing liabilities, partially offset by a 76 basis point decrease in the average yield on earning assets.

On October 21, 2009, the Board of Directors of Chemung Financial Corp. amended the Company's Bylaws to allow for the retirement of a Director to be at the next annual meeting after which a director reaches age 72. Article III, Section 2 of the Bylaws were amended.

Chemung Financial Corp. reported unaudited earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net income of $695,000 compared to $2.272 million in the second quarter of 2008. Earnings per share for the quarter totaled $0.19 as compared with $0.63 a year ago. Compared to the corresponding period in 2008, second quarter net interest income rose 9.7% to $8.289 million. This improvement was due to a $64.9 million increase in average earning assets and an 81 basis point decline in the average cost of interest bearing liabilities, partially offset by a 59 basis point decrease in the average yield on earning assets. Second quarter and year-to date earnings have been impacted by other-than-temporary impairment write-downs of trust preferred securities pools carried in the corporation's investment portfolio totaling $796,000 and $952,000, respectively. The negative after-tax impact of the above items totaled approximately $1.462 million or $0.41 per share in the second quarter and $1.613 million or $0.45 per share year-to-date. For the six months, the company reported net income of $2.429 million versus $4.414 million last year, with earnings per share down from $1.23 to $0.67 per share. Net interest income for the first six months of this year was $1.389 million or 9.5% higher than last year. The increase in net interest income is attributed to a $75.6 million increase in average earning assets and a 92 basis point decrease in the cost of interest bearing liabilities, partially offset by a 72 basis point decrease in the average yield on earning assets. The company recorded other-than-temporary impairment write-downs of trust preferred securities pools carried in the corporation's investment portfolio totaling $796,000.