Chemung Financial Reports First Quarter 2013 Earnings

Chemung Financial Reports First Quarter 2013 Earnings

ELMIRA, N.Y., April 25, 2013 (GLOBE NEWSWIRE) -- Chemung Financial Corporation
(Nasdaq:CHMG), the parent company of Chemung Canal Trust Company, reported
quarter ended March 31, 2013, net income and earnings per share. Highlights
for the current quarter include:

  *Net income for the three months ended March 31, 2013 was $2.4 million, or
    $0.52 per share, compared with $3.6 million, or $0.78 per share, for the
    same period in the prior year, a decrease of $1.2 million, or 33.3%.
  *Net interest margin for the three months ended March 31, 2013 was 4.07%,
    down from 4.29% for the same period in the prior year.
  *Non-performing assets to total assets ratio was 1.36% at March 31, 2013
    compared with 1.32% at December 31, 2012.Excluding $6.3 million in
    accruing troubled debt restructurings and $3.2 million in accruing loans
    past due 90 days or more, the adjusted non-performing assets to total
    assets ratio was 0.61%.
  *Capital remains strong as the tangible equity to tangible assets ratio was
    8.47% at March 31, 2013, compared with 8.53% at December 31, 2012 and
    8.24% at March 31, 2012.
  *Dividends declared during the quarter ended March 31, 2013 were $0.26 per
    share compared with $0.25 per share for the prior year, an increase of
    4.0%.

Ronald M. Bentley, President and CEO stated, "We are pleased that our
financial performance remains strong despite the expected pressure on our net
interest margin due to record low interest rates." Mr. Bentley continued,
"Even though our level of non-performing assets has increased slightly from a
year earlier, the ratio of non-performing assets to total assets, net of
accruing troubled debt restructurings and accruing loans past due 90 days or
more, continues to be a strong credit quality ratio at 0.61% versus 0.78% a
year earlier."

Summary:

Chemung Financial Corporation reported net income of $2.4 million for the
three months ended March 31, 2013, a decrease of $1.2 million, or 33.3%,
compared with $3.6 million for the three months ended March 31, 2012.Earnings
per share for the three months ended March 31, 2013, was $0.52 compared with
$0.78 for the three months ended March 31, 2012.Return on average assets and
return on average equity for the three months ended March 31, 2013, were 0.77%
and 7.37%, respectively, compared with 1.18% and 11.34%, respectively, for the
same period in the prior year.

The decline in 2013 earnings was due primarily to a decrease of $0.3 million
in net interest income and reductions of $0.3 million in net gain on
securities transactions and $0.8 million in pre-tax casualty gains from
insurance reimbursements.In addition, non-interest expense increased $0.8
million.These items were partially offset by a reduction of $0.7 million in
income taxes.

Net income of $2.4 million for the current quarter ended March 31, 2013
represents an increase of $0.3 million, or 13.2%, from net income of $2.1
million for the preceding quarter ended December 31, 2012.The increase was
primarily due to an increase of $0.1 million in net interest income and a
reduction of $0.9 million in non-interest expense.These items were partially
offset by increases of $0.4 million in the provision for loan losses and $0.2
million in income taxes, along with a reduction of $0.2 million in
non-interest income.Earnings per share for the current quarter totaled $0.52
compared with $0.46 for the preceding quarter.Return on average assets and
return on average equity for the current quarter were 0.77% and 7.37%,
respectively, compared with 0.67% and 6.33%, respectively, for the preceding
quarter.

Net Interest Income:

Net interest income for the three months ended March 31, 2013 totaled $11.7
million compared with $12.0 million for the prior year, a decrease of $0.3
million, or 2.6%.Net interest margin was 4.07% for the three months ended
March 31, 2013 compared with 4.29% for the same period in the prior year.The
decline in net interest income was primarily due to a 40 basis point decrease
in the yield on interest-earning assets, partially offset by an increase of
$38.5 million in average earning assets.The decline in net interest margin
was primarily due to yields on interest-earning assets decreasing at a faster
rate than the cost of interest-bearing liabilities.The decrease in yield on
interest-earning assets was attributable to lower loan yields as loans
continue to reprice at current market rates.

Net interest income for the current quarter totaled $11.7 million compared
with $11.6 million for the preceding quarter ended December 31, 2012, an
increase of $0.1 million, or 0.7%.Net interest margin was 4.07% for the
current quarter compared with 3.98% for the preceding quarter, due primarily
to additional income accretion from our purchased credit impaired ("PCI")
portfolio from prior acquisitions.Net of PCI adjustments, the net interest
margin was 3.94% for the current quarter compared with 3.96% for the preceding
quarter.

Non-Interest Income:

Non-interest income for the three months ended March 31, 2013 was $4.0 million
compared with $4.9 million for the prior year, a decrease of $0.9 million, or
17.8%.The decline was primarily due to reductions of $0.8 million in casualty
gains from insurance reimbursements and $0.3 million in net gain on securities
transactions.These items were offset by an increase of $0.2 million in
revenue from our equity investments.

Non-interest income for the three months ended March 31, 2013 was $4.0 million
compared with $4.2 million for the preceding quarter ended December 31, 2012,
a decrease of $0.2 million, or 4.1%.The decline was primarily due to
decreases of $0.1 million in service charges on deposit accounts and $0.1
million in net gain on sales of loans held for sale.

Non-Interest Expense:

Non-interest expense for the three months ended March 31, 2013 was $11.7
million compared with $10.9 million for the prior year, an increase of $0.8
million, or 7.3%.The increase was primarily due to increases of $0.3 million
in salaries and wages, $0.2 million in professional services and $0.1 million
in pension and other employee benefits.The increase in salaries and wages was
primarily due to compensation related to merit increases and incentive
compensation.The increase in pension and other employee benefits was
primarily due to higher pension costs and health benefits.The increase in
professional services was due primarily to tax preparation costs for the
Wealth Management Group.The tax preparation costs recorded in the first
quarter of 2013 were level with 2012 costs, which were recorded in the second
quarter of 2012.

Non-interest expense for the three months ended March 31, 2013 was $11.7
million compared with $12.6 million for the preceding quarter ended December
31, 2012, a decrease of $0.9 million, or 7.3%.The decrease was primarily due
to decreases of $0.4 million in salaries and wages and $0.4 million in
professional services.The decrease in salaries and wages was primarily due to
incentive compensation recorded in the preceding quarter.The decrease in
professional services was due to consultant fees recorded in the preceding
quarter.

Asset Quality:

Non-performing loans totaled $16.8 million at March 31, 2013, or 1.82% of
total loans, up slightly from $15.9 million, or 1.78%, at December 31,
2012.Non-performing assets which are comprised of non-performing loans and
other real estate owned, totaled $17.4 million at March 31, 2013, or 1.36% of
total assets, up slightly from $16.4 million, or 1.32%, at December 31,
2012.Excluding $6.3 million in accruing troubled debt restructurings and $3.2
million in accruing loans past due 90 days or more, the adjusted
non-performing assets to total assets ratio was 0.61%.

Management performs an ongoing assessment of the adequacy of the allowance for
loan losses based upon a number of factors including an analysis of historical
loss factors, collateral evaluations, recent charge-off experience, credit
quality of the loan portfolio, current economic conditions and loan
growth.Based on this analysis, the provision for loan losses for the three
months ended March 31, 2013 was $0.4 million, down slightly from the prior
year.Net charge-offs for the three months ended March 31, 2013 were less than
$0.1 million compared with net recoveries of less than $0.1 million for the
prior year.

The provision for loan losses for the three months ended March 31, 2013 was
$0.4 million compared with $0.1 million for the preceding quarter ended
December 31, 2012.The increase in the provision for loan losses is primarily
due to the growth in portfolio loans.Net charge-offs for the current quarter
were less than $0.1 million compared with $0.5 million for the preceding
quarter.

At March 31, 2013 the allowance for loan losses was $10.8 million, compared
with $10.4 million at December 31, 2012, and $10.3 million at March 31, 2012.
The allowance for loan losses was 64.44% of non-performing loans at March 31,
2013, compared with 65.70% at December 31, 2012 and 67.93% at March 31,
2012.The ratio of the allowance for loan losses to total loans was 1.17% at
March 31, 2013, level with December 31, 2012, and down from 1.28% at March 31,
2012.

Balance Sheet Activity:

Assets totaled $1.280 billion at March 31, 2013 compared with $1.248 billion
at December 31, 2012, an increase of $31.8 million, or 2.5%.The growth was
primarily due to increases of $27.9 million, or 3.1%, in total portfolio loans
and $5.9 million in cash and cash equivalents.The increase in portfolio loans
was due to strong growth of $27.0 million in commercial loans.

Deposits totaled $1.077 billion at March 31, 2013 compared with $1.045 million
at December 31, 2012, an increase of $32.4 million, or 3.1%.The growth was
primarily due to increases of $21.9 million in money market accounts, $11.5
million in interest-bearing demand deposits and $7.8 million in savings
deposits. These items were partially offset by decreases of $4.2 million in
non-interest-bearing demand deposits and $4.6 million in time deposits.

Total equity was $132.9 million at March 31, 2013 compared with $131.1 million
at December 31, 2012.The total equity to total assets ratio was 10.38% at
March 31, 2013 compared with 10.50% at December 31, 2012.The tangible equity
to tangible assets ratio was 8.47% at March 31, 2013 compared with 8.53% at
December 31, 2012.As of March 31, 2013, both the Corporation's and the Bank's
capital ratios were in excess of those required to be considered
well-capitalized under regulatory capital standards.

Other Item:

The market value of total assets under management or administration in our
Wealth Management Group was $1.833 billion at March 31, 2013 compared with
$1.735 billion at December 31, 2012 and $1.704 billion at March 31, 2012.

About Chemung Financial Corporation:

Chemung Financial Corporation is a $1.3 billion financial services holding
company headquartered in Elmira, New York and operates 28 retail offices
through its principal subsidiary, Chemung Canal Trust Company, a full-service
community bank with trust powers.Established in 1833, Chemung Canal Trust
Company is the oldest locally-owned and managed community bank in New York
State.Chemung Financial Corporation is also the parent of CFS Group, Inc., a
financial services subsidiary offering non-traditional services including
mutual funds, annuities, brokerage services, tax preparation services and
insurance.CFS Group, Inc. was founded in 2001.

This press release may be found at: www.chemungcanal.com under Shareholder
Info.

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.The Corporation intends its forward-looking statements
to be covered by the safe harbor provisions for forward-looking statements in
these sections.All statements regarding, among other things, the
Corporation's expected financial condition and results of operations, the
Corporation's business strategy, the Corporation's financial plans, forecasted
demographic and economic trends relating to the Corporation's industry and
similar matters are forward-looking statements.These statements can sometimes
be identified by the Corporation's use of forward-looking words such as "may,"
"will," "anticipate," "estimate," "expect," or "intend."The Corporation
cannot promise that its expectations in such forward-looking statements will
turn out to be correct.The Corporation's actual results could be materially
different from expectations because of various factors, including changes in
economic conditions or interest rates, credit risk, difficulties in managing
the Corporation's growth, competition, changes in law or the regulatory
environment, including the Dodd-Frank Wall Street Reform and Consumer
Protection Act, and changes in general business and economic
trends.Information concerning these and other factors can be found in the
Corporation's periodic filings with the Securities and Exchange Commission,
including in our 2012 Annual Report on Form 10-K.These filings are available
publicly on the SEC's website at http://www.sec.gov, on the Corporation's
website at http://www.chemungcanal.com or upon request from the Corporate
Secretary at (607) 737-3746.Except as otherwise required by law, the
Corporation undertakes no obligation to publicly update or revise its
forward-looking statements, whether as a result of new information, future
events, or otherwise.

Chemung Financial Corporation
Consolidated Balance Sheets (Unaudited)
                       Mar. 31,   Dec. 31,   Sept. 30,  June 30,   March 31,
(Dollars in thousands,  2013       2012       2012       2012       2012
except share data)
ASSETS                                                          
Cash and due from       $27,757  $29,239  $35,324  $33,673  $27,311
financial institutions
Interest-bearing
deposits in other       18,380    11,002    45,908    40,502    83,203
financial institutions
Total cash and cash     46,137    40,241    81,232    74,175    110,514
equivalents
                                                               
Trading assets, at fair 384       348       275       252       254
value
                                                               
Securities available    235,307   239,686   253,669   260,942   259,450
for sale
Securities held to      9,898     5,749     6,163     6,334     7,447
maturity
FHLB and FRB stocks, at 4,607     4,710     4,760     5,359     5,436
cost
Total investment        249,812   250,145   264,592   272,635   272,333
securities
                                                               
Commercial              481,063   454,048   444,491   436,205   414,536
Mortgage                202,114   200,476   193,049   194,512   192,548
Consumer                238,256   238,993   238,818   225,230   195,949
Total loans             921,433   893,517   876,358   855,947   803,033
Allowance for loan      (10,825)  (10,433)  (10,828)  (10,392)  (10,283)
losses
Loans, net              910,608   883,084   865,530   845,555   792,750
                                                               
Loans held for sale     786       1,057     1,165     482       826
Premises and equipment, 24,800    25,484    24,863    24,718    24,977
net
Goodwill                21,824    21,824    21,824    21,824    21,824
Other intangible        4,909     5,144     5,382     5,642     5,906
assets, net
Other assets            20,712    20,833    22,117    22,176    25,111
Total assets            $         $         $         $         $
                        1,279,972  1,248,160  1,286,980  1,267,459  1,254,495
                                                               
LIABILITIES AND                                                 
SHAREHOLDERS' EQUITY
Deposits:                                                       
Non-interest-bearing    $296,361 $300,610 $302,509 $297,413 $272,055
demand deposits
Interest-bearing demand 102,201   90,730    108,923   88,343    88,105
deposits
Insured money market    265,025   243,115   248,722   232,870   212,376
accounts
Savings deposits        181,421   173,589   174,074   174,974   203,204
Time deposits           232,091   236,690   248,948   260,079   262,965
Total deposits          1,077,099 1,044,734 1,083,176 1,053,679 1,038,705
                                                               
Securities sold under
agreements to           31,427    32,711    32,918    31,750    34,998
repurchase
FHLB term advances      27,158    27,225    28,046    41,128    43,227
Other liabilities       11,380    12,375    9,960     10,693    8,736
Total liabilities       1,147,064 1,117,045 1,154,100 1,137,250 1,125,666
                                                               
Shareholders' equity                                            
Common stock            53        53        53        53        53
Additional-paid-in      45,473    45,357    45,538    45,525    45,556
capital
Retained earnings       108,296   107,078   106,092   104,402   103,100
Treasury stock, at cost (18,291)  (18,566)  (18,731)  (18,915)  (18,734)
Accumulated other
comprehensive income    (2,623)   (2,807)   (72)      (856)     (1,146)
(loss)
Total shareholders'     132,908   131,115   132,880   130,209   128,829
equity
Total liabilities and   $         $         $         $         $
shareholders' equity    1,279,972  1,248,160  1,286,980  1,267,459  1,254,495
                                                               
Period-end shares       4,657,151 4,649,741 4,642,317 4,632,014 4,639,565
outstanding


Chemung Financial Corporation
Consolidated Statements of Income (Unaudited)
                                                Three Months Ended    
                                                March 31,             Percent
(Dollars in thousands, except share and per      2013       2012       Change
share data)
Interest and dividend income:                                        
Loans, including fees                            $11,304  $11,671  (3.1)
Taxable securities                               1,131     1,486     (23.9)
Tax exempt securities                            305       341       (10.6)
Interest-bearing deposits                        8         42        (81.0)
Total interest and dividend income               12,748    13,540    (5.8)
                                                                    
Interest expense:                                                    
Deposits                                         624       913       (31.7)
Securities sold under agreements to repurchase   219       283       (22.6)
Borrowed funds                                   188       313       (39.9)
Total interest expense                           1,031     1,509     (31.7)
                                                                    
Net interest income                              11,717    12,031    (2.6)
Provision for loan losses                        431       477       (9.6)
Net interest income after provision for loan     11,286    11,554    (2.3)
losses
                                                                    
Non-interest income:                                                 
Wealth management group fee income               1,750     1,776     (1.5)
Service charges on deposit accounts              969       992       (2.3)
Net gain on securities transactions              --       297       (100.0)
Net gain on sales of loans held for sale         112       65        72.3
Net loss on sales of other real estate owned     --       (6)       N/M
Casualty gains                                   --       759       (100.0)
Other                                            1,191     1,007     18.3
Total non-interest income                        4,022     4,890     (17.8)
                                                                    
Non-interest expense:                                                
Salaries and wages                               4,818     4,493     7.2
Pension and other employee benefits              1,424     1,290     10.4
Net occupancy                                    1,362     1,295     5.2
Furniture and equipment                          518       518       0.0
Data processing                                  1,113     1,079     3.2
Professional fees                                329       150       119.3
Amortization of intangible assets                235       284       (17.3)
Marketing and advertising                        288       289       (0.3)
Other real estate owned expense                  36        43        (16.3)
FDIC insurance                                   217       227       (4.4)
Loan expenses                                    143       180       (20.6)
Other                                            1,242     1,083     14.7
Total non-interest expense                       11,725    10,931    7.3
                                                                    
Income before income tax expense                 3,583     5,513     (35.0)
Income tax expense                               1,171     1,898     (38.3)
Net income                                       $2,412   $3,615   (33.3)
                                                                    
Basic and diluted earnings per share             $0.52    $0.78    
Cash dividends declared per share                0.26      0.25      
Average basic and diluted shares outstanding     4,655,862 4,642,012 
                                                                    
N/M -- Not meaningful.                                               


Chemung Financial Corporation
Consolidated Financial Highlights (Unaudited)
                                                               
                   As of or for the Three Months Ended
                   March 31,   Dec. 31,    Sept. 30,   June 30,    March 31,
(Dollars in
thousands, except   2013        2012        2012        2012        2012
share and per share
data)
                                                               
RESULTS OF                                                      
OPERATIONS
Interest income     $12,748   $12,757   $13,015   $12,765   $13,540
Interest expense    1,031       1,116       1,225       1,384       1,509
Net interest income 11,717      11,641      11,790      11,381      12,031
Provision for loan  431         74          225         52          477
losses
Net interest income
after provision for 11,286      11,567      11,565      11,329      11,554
loan losses
Non-interest income 4,022       4,192       3,993       4,112       4,890
Non-interest        11,725      12,642      11,341      11,882      10,931
expense
Income before       3,583       3,117       4,217       3,559       5,513
income tax expense
Income tax expense  1,171       987         1,383       1,115       1,898
Net income          $2,412    $2,130    $2,834    $2,444    $3,615
Basic and diluted   $0.52     $0.46     $0.61     $0.53     $0.78
earnings per share
Average basic and
diluted shares      4,655,862   4,643,695   4,641,547   4,636,395   4,642,012
outstanding
                                                               
PERFORMANCE RATIOS                                              
Return on average   0.77%       0.67%       0.89%       0.78%       1.18%
assets
Return on average   7.37%       6.33%       8.53%       7.55%       11.34%
equity
Return on average   9.24%       7.94%       10.76%      9.58%       14.47%
tangible equity (a)
Efficiency ratio    74.50%      79.85%      71.91%      76.81%      68.90%
(b)
Non-interest
expense to average  3.75%       3.98%       3.57%       3.82%       3.56%
assets
Loans to deposits   85.55%      85.53%      80.91%      81.23%      77.31%
                                                               
YIELDS / RATES                                                  
Yield on loans      5.04%       5.02%       5.21%       5.39%       5.90%
Yield on            2.28%       2.23%       2.23%       2.13%       2.27%
investments
Yield on
interest-earning    4.43%       4.36%       4.46%       4.46%       4.83%
assets
Cost of
interest-bearing    0.33%       0.36%       0.40%       0.43%       0.49%
deposits
Cost of borrowings  2.79%       2.74%       2.84%       3.01%       2.97%
Cost of
interest-bearing    0.50%       0.54%       0.59%       0.66%       0.73%
liabilities
Interest rate       3.93%       3.82%       3.87%       3.80%       4.10%
spread
Net interest margin 4.07%       3.98%       4.04%       3.98%       4.29%
                                                               
CAPITAL                                                         
Total equity to
total assets at end 10.38%      10.50%      10.32%      10.27%      10.27%
of period
Tangible equity to
tangible assets at  8.47%       8.53%       8.39%       8.29%       8.24%
end of period (a)
                                                               
Book value per      $28.54    $28.20    $28.62    $28.11    $27.77
share
Tangible book value 22.80       22.40       22.76       22.18       21.79
per share
Period-end market   33.90       29.89       23.77       25.50       25.40
value per share
Dividends declared  0.26        0.25        0.25        0.25        0.25
per share
                                                               
AVERAGE BALANCES                                                
Loans (c)           $909,166  $888,515  $867,971  $823,754  $796,035
Earning assets      1,166,590   1,162,788   1,160,479   1,150,073   1,128,047
Total assets        1,266,379   1,264,125   1,262,648   1,252,461   1,235,453
Deposits            1,064,016   1,059,463   1,055,510   1,037,576   1,018,035
Total equity        132,783     133,799     132,186     130,254     128,194
Tangible equity (a) 105,913     106,703     104,827     102,635     100,465
                                                               
ASSET QUALITY                                                   
Net charge-offs     $39       $469      $(210)    $(58)     $(23)
(recoveries)
Non-performing      16,798      15,880      13,260      15,009      15,137
loans
Non-performing      17,363      16,445      14,194      15,979      16,117
assets
Allowance for loan  10,825      10,433      10,828      10,392      10,283
losses
                                                               
Annualized net
charge-offs to      0.02%       0.21%       (0.10)%     (0.03)%     (0.01)%
average loans
Non-performing
loans to total      1.82%       1.78%       1.51%       1.75%       1.88%
loans
Non-performing
assets to total     1.36%       1.32%       1.10%       1.26%       1.28%
assets
Adjusted
non-performing      0.61%       0.53%       0.75%       0.77%       0.78%
assets to total
assets (d)
Allowance for loan
losses to total     1.17%       1.17%       1.24%       1.21%       1.28%
loans
Allowance for
originated loans to 1.16%       1.18%       1.38%       1.38%       1.48%
originated loans
(e)
Allowance for loan
losses to           64.44%      65.70%      81.66%      69.24%      67.93%
non-performing
loans
                                                               
(a) See the GAAP to Non-GAAP reconciliations.
(b) Efficiency ratio is non-interest expense divided by the total of net
interest income plus non-interest income less net gain on securities
transactions less casualty gains.
(c) Loans include loans held for sale.Loans do not reflect the allowance for
loan losses.
(d) Adjusted non-performing assets include total non-performing assets less
accruing troubled debt restructurings and accruing loans past due 90 days or
more.
(e) Originated loans represent total loans excluding acquired loans.



Chemung Financial Corporation
GAAP to Non-GAAP Reconciliations (Unaudited)

The table below shows computations of tangible equity and tangible assets and
certain related ratios, all of which are considered to be non-GAAP financial
measures.The tangible equity to tangible assets ratio has become a focus of
some investors and management believes this ratio may assist in analyzing the
Corporation's capital position, absent the effects of intangible assets.These
non-GAAP financial measures have limitations as analytical tools, and should
not be considered in isolation, or as a substitute for analysis of results
reported under GAAP.Because not all companies use identical calculations, the
non-GAAP measures presented in the following table may not be comparable to
those reported by other companies.
                                                             
                                                                           
                  As of or for the Three Months Ended
(Dollars in        March 31,   Dec. 31,    Sept. 30,   June 30,   March 31,
thousands,
except per share   2013        2012        2012        2012       2012
data)
                                                             
TANGIBLE EQUITY
AND TANGIBLE                                                  
ASSETS
(PERIOD END)                                                  
Total
shareholders'      $132,908  $131,115  $132,880  $130,209 $128,829
equity (GAAP)
Less:intangible   (26,733)    (26,968)    (27,206)    (27,466)   (27,730)
assets
Tangible equity    $106,175  $104,147  $105,674  $102,743 $101,099
(non-GAAP)
                                                             
Total assets       $          $          $          $         $
(GAAP)             1,279,972   1,248,160   1,286,980   1,267,459  1,254,495
Less:intangible   (26,733)    (26,968)    (27,206)    (27,466)   (27,730)
assets
Tangible assets    $          $          $          $         $
(non-GAAP)         1,253,239   1,221,192   1,259,774   1,239,993  1,226,765
                                                             
Total equity to
total assets at    10.38%      10.50%      10.32%      10.27%     10.27%
end of period
(GAAP)
Book value per     $28.54    $28.20    $28.62    $28.11   $27.77
share (GAAP)
                                                             
Tangible equity to
tangible assets at 8.47%       8.53%       8.39%       8.29%      8.24%
end of period
(non-GAAP)
Tangible book
value per share    $22.80    $22.40    $22.76    $22.18   $21.79
(non-GAAP)
                                                             
TANGIBLE EQUITY
AND TANGIBLE                                                  
ASSETS
(AVERAGE)                                                     
Total
shareholders'      $132,783  $133,799  $132,186  $130,254 $128,194
equity (GAAP)
Less:intangible   (26,870)    (27,096)    (27,359)    (27,619)   (27,729)
assets
Tangible equity    $105,913  $106,703  $104,827  $102,635 $100,465
(non-GAAP)
                                                             
Return on average  7.37%       6.33%       8.53%       7.55%      11.34%
equity (GAAP)
                                                             
Return on average
tangible equity    9.24%       7.94%       10.76%      9.58%      14.47%
(non-GAAP)

CONTACT: Mark A. Severson, EVP and CFO
         Phone: 607-737-3714