The subsidiary of Chemung Financial in Elmira, N.Y., has sold its equity securities portfolio.
The $1.5 billion-asset company said in a Tuesday regulatory filing the equity securities portfolio sold by Chemung Canal Trust Company had a fair value of $6.5 million.
This transaction will increase Chemung's fourth-quarter net income by about $3.9 million, or 83 cents per share, the company said. Furthermore, Chemung's Tier 1 capital will increase to approximately $110 million, according to figures from the Federal Deposit Insurance Corporation.
The company completed this sale to "optimize the benefits it obtains from its long-term holding positions of the assets sold, including capital treatment by bank regulators," the regulatory filing said.