Chemung Financial Corporation Reports Annual Net Income of $23.7 million, or $4.96 per share, and Fourth Quarter 2024 Net Income of $5.9 million, or $1.24 per share
Chemung Financial (CHMG) reported annual net income of $23.7 million ($4.96 per share) for 2024, down from $25.0 million ($5.28 per share) in 2023. Fourth quarter 2024 net income was $5.9 million ($1.24 per share), up from $5.7 million in Q3 2024 and $3.8 million in Q4 2023.
Key highlights include net interest margin expansion to 2.92% in Q4 2024 from 2.72% in Q3 2024, and annual loan growth of 5.0% with commercial and industrial growth of 13.3% and commercial real estate growth of 8.4%. Net interest income for 2024 was $74.1 million, slightly down from $74.5 million in 2023.
The bank saw improvements in asset quality with decreased non-performing loans ratios and maintained a dividend of $0.31 per share in Q4 2024.
Chemung Financial (CHMG) ha riportato un reddito netto annuo di 23,7 milioni di dollari (4,96 dollari per azione) per il 2024, in calo rispetto ai 25,0 milioni di dollari (5,28 dollari per azione) del 2023. Nel quarto trimestre del 2024, il reddito netto è stato di 5,9 milioni di dollari (1,24 dollari per azione), in aumento rispetto ai 5,7 milioni di dollari nel terzo trimestre del 2024 e ai 3,8 milioni di dollari nel quarto trimestre del 2023.
I punti salienti includono l'espansione del margine di interesse netto al 2,92% nel quarto trimestre del 2024 rispetto al 2,72% nel terzo trimestre del 2024, e una crescita annua dei prestiti del 5,0%, con una crescita del 13,3% nei prestiti commerciali e industriali e del 8,4% nel settore immobiliare commerciale. Il reddito da interessi netti per il 2024 è stato di 74,1 milioni di dollari, leggermente in calo rispetto ai 74,5 milioni di dollari nel 2023.
La banca ha visto miglioramenti nella qualità degli attivi con una riduzione dei rapporti sui prestiti non performanti e ha mantenuto un dividendo di 0,31 dollari per azione nel quarto trimestre del 2024.
Chemung Financial (CHMG) reportó un ingreso neto anual de 23,7 millones de dólares (4,96 dólares por acción) para 2024, una disminución de 25,0 millones de dólares (5,28 dólares por acción) en 2023. En el cuarto trimestre de 2024, el ingreso neto fue de 5,9 millones de dólares (1,24 dólares por acción), un aumento respecto a los 5,7 millones de dólares en el tercer trimestre de 2024 y 3,8 millones de dólares en el cuarto trimestre de 2023.
Los puntos clave incluyen la expansión del margen de interés neto al 2,92% en el cuarto trimestre de 2024 desde el 2,72% en el tercer trimestre de 2024, y un crecimiento anual de los préstamos del 5,0%, con un crecimiento comercial e industrial del 13,3% y un crecimiento del sector inmobiliario comercial del 8,4%. Los ingresos por intereses netos para 2024 fueron de 74,1 millones de dólares, ligeramente por debajo de los 74,5 millones de dólares en 2023.
El banco vio mejoras en la calidad de los activos con una disminución en los ratios de préstamos no rentables y mantuvo un dividendo de 0,31 dólares por acción en el cuarto trimestre de 2024.
Chemung Financial (CHMG)는 2024년 연간 순이익이 2,370만 달러(주당 4.96달러)로 2023년 2,500만 달러(주당 5.28달러)에서 감소했다고 보고했습니다. 2024년 4분기 순이익은 590만 달러(주당 1.24달러)로, 2024년 3분기의 570만 달러와 2023년 4분기의 380만 달러에서 증가했습니다.
주요 사항으로는 2024년 4분기 순이자마진이 2.92%로 2024년 3분기 2.72%에서 확대되었으며, 연간 대출 성장률이 5.0%로, 상업 및 산업 부문이 13.3%, 상업용 부동산이 8.4% 성장했습니다. 2024년 순이자 수익은 7410만 달러로 2023년 7450만 달러에서 약간 감소했습니다.
은행은 비수익 대출 비율이 감소하면서 자산 품질 개선을 보았고, 2024년 4분기에는 주당 0.31달러의 배당금을 유지했습니다.
Chemung Financial (CHMG) a annoncé un revenu net annuel de 23,7 millions de dollars (4,96 dollars par action) pour 2024, en baisse par rapport à 25,0 millions de dollars (5,28 dollars par action) en 2023. Au quatrième trimestre 2024, le revenu net était de 5,9 millions de dollars (1,24 dollars par action), en hausse par rapport à 5,7 millions de dollars au T3 2024 et 3,8 millions de dollars au T4 2023.
Les faits marquants incluent l'expansion de la marge d'intérêt net à 2,92% au T4 2024 contre 2,72% au T3 2024, et une croissance annuelle des prêts de 5,0%, avec une croissance dans le secteur commercial et industriel de 13,3% et dans l'immobilier commercial de 8,4%. Le revenu d'intérêts nets pour 2024 s'élevait à 74,1 millions de dollars, légèrement en baisse par rapport à 74,5 millions de dollars en 2023.
La banque a constaté des améliorations dans la qualité des actifs avec une diminution des ratios de prêts non performants et a maintenu un dividende de 0,31 dollar par action au T4 2024.
Chemung Financial (CHMG) berichtete für das Jahr 2024 einen Nettogewinn von 23,7 Millionen Dollar (4,96 Dollar pro Aktie), ein Rückgang von 25,0 Millionen Dollar (5,28 Dollar pro Aktie) im Jahr 2023. Der Nettogewinn im vierten Quartal 2024 betrug 5,9 Millionen Dollar (1,24 Dollar pro Aktie), ein Anstieg gegenüber 5,7 Millionen Dollar im 3. Quartal 2024 und 3,8 Millionen Dollar im 4. Quartal 2023.
Zu den wichtigsten Punkten gehören die Erweiterung der Nettogewinnmarge auf 2,92% im 4. Quartal 2024 verglichen mit 2,72% im 3. Quartal 2024 und ein jährliches Kreditwachstum von 5,0%, mit einem Wachstum in der gewerblichen und industriellen Finanzierung von 13,3% und einem Wachstum im gewerblichen Immobilienbereich von 8,4%. Das Nettozinseinkommen für 2024 betrug 74,1 Millionen Dollar, etwas weniger als die 74,5 Millionen Dollar im Jahr 2023.
Die Bank verzeichnete Verbesserungen bei der Qualität der Vermögenswerte mit gesunkenen Quoten für notleidende Kredite und behielt eine Dividende von 0,31 Dollar pro Aktie im 4. Quartal 2024 bei.
- Net interest margin expanded by 20 basis points to 2.92% in Q4 2024
- Annual loan growth of 5.0%, including 13.3% in commercial and industrial loans
- Q4 2024 net income increased to $5.9M from $3.8M in Q4 2023
- Reduction in non-performing loans to total loans ratio
- Annual net income decreased to $23.7M in 2024 from $25.0M in 2023
- Net interest income declined by 0.5% to $74.1M in 2024
- Non-interest income decreased by 5.3% to $23.2M in 2024
- Non-interest expense increased by 4.8% to $67.3M in 2024
Insights
The Q4 2024 results demonstrate Chemung Financial's resilient business model and successful execution of strategic initiatives. The 20 basis points sequential NIM expansion to 2.92% is particularly impressive, driven by prudent deposit cost management and strategic balance sheet positioning.
The loan portfolio shows healthy diversification with 13.3% growth in C&I and 8.4% growth in CRE, indicating strong commercial relationships and market penetration. The quality metrics are encouraging, with non-performing loans to total loans declining nine basis points quarter-over-quarter.
The bank's deposit strategy has been notably effective, successfully reducing funding costs through:
- Strategic CD campaign adjustments, lowering rates by 50 basis points
- Optimization of brokered deposit costs (61 basis points reduction)
- Careful management of money market rates while maintaining balances
The expansion into Western New York through the Canal Bank division represents a calculated growth initiative, though it has increased operating expenses through additional staffing and marketing costs. The 4.8% year-over-year increase in non-interest expense to $67.3M reflects these growth investments, while core operational metrics remain sound.
Asset quality trends are favorable, with the CECL model updates reflecting improved baseline loss rates. The
ELMIRA, N.Y., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of
"A prudent and relationship-based effort to manage funding costs provided a tailwind for fourth quarter earnings, and capped a solid year of results in an uncertain environment," said Anders M. Tomson, President and CEO of Chemung Financial Corporation. "Strong net interest margin expansion speaks to the execution of Bank-wide strategic initiatives and a thoughtful approach to loan growth, particularly in our newly established Canal Bank division," added Tomson.
"As we reflect on 2024 and look ahead to 2025, the Corporation is situated to perform well, due in large part to the combined efforts of our team over the past year. Our results demonstrate the continued value of a community-focused approach to banking, which we look forward to carrying on in the coming year," concluded Tomson.
Fourth Quarter Highlights:
- Net interest margin expanded 20 basis points compared to the prior quarter, from
2.72% in the third quarter 2024 to2.92% in the fourth quarter 2024. 1
- Annual loan growth totaled
5.0% for the year ended December 31, 2024, including commercial and industrial growth of13.3% and commercial real estate growth of8.4% .
- Non-performing loans to total loans declined nine basis points compared to September 30, 2024 and ten basis points compared to December 31, 2023, while non-performing assets to total assets declined five basis points compared to both September 30, 2024 and December 31, 2023.
- Dividends declared during the fourth quarter 2024 were
$0.31 per share.
1 See the GAAP to Non-GAAP reconciliations.
2024 vs 2023
Net Interest Income:
Net interest income for the year ended December 31, 2024 totaled
Interest expense on deposits increased primarily due to a 68 basis points increase in the average interest rate paid on interest-bearing deposits, which included brokered deposits, and deposit campaigns primarily relating to time deposits. The increase in interest expense on borrowed funds was largely due to a
Interest income on loans, including fees increased primarily due to an increase of
Fully taxable equivalent net interest margin was
Provision for Credit Losses:
Provision for credit losses for the year ended December 31, 2024 was a credit of
Non-Interest Income:
Non-interest income for the year ended December 31, 2024 was
Other non-interest income decreased primarily due to the recognition of a
Non-Interest Expense:
Non-interest expense for the year ended December 31, 2024 was
Salaries and wages increased primarily due to additional staffing in the Bank's new Western New York market, merit-based wage increases, and promotions, which was partially offset by savings from the outsourcing of certain back office functions during 2024. The increase in pension and other employee benefits was largely due to an increase in employee healthcare-related expenses, compared to the prior year. The increase in data processing was primarily due to the addition of new contracts, an increase in debit card procurement expenses, and an increase in cybersecurity software expense. The increase in marketing and advertising was mainly due to expenditures relating to the Bank's 190th anniversary checking account promotion and ongoing CD campaigns, the launch of the Bank's new Western New York "Canal Bank" brand, and a general increase in advertising efforts during the current year.
Income Tax Expense:
Income tax expense for the year ended December 31, 2024 was
4th Quarter 2024 vs 3rd Quarter 2024
Net Interest Income:
Net interest income for the fourth quarter of 2024 totaled
Interest expense on deposits decreased primarily due to a decrease of 21 basis points in the average interest rate paid on total interest-bearing deposits, despite an increase of
The decrease in interest expense on borrowed funds was primarily due to a decrease in the average cost of total borrowings of 34 basis points, and a decrease in average balances of borrowed funds of
Interest income on loans, including fees, increased primarily due to a
Fully taxable equivalent net interest margin was
Provision for Credit Losses:
Provision for credit losses was
Non-Interest Income:
Non-interest income for the fourth quarter of 2024 was
Other non-interest income increased primarily due to an increase in interest rate swap fee income compared to the prior quarter. The increase in service charges on deposit accounts was mainly due to fee rate increases which were phased in during the fourth quarter of 2024. The decrease in the change in fair value of equity investments was largely due to a decrease in the market value of assets held for the Corporation's deferred compensation plan, compared to the increase in market value in the prior quarter.
Non-Interest Expense:
Non-interest expense for the fourth quarter of 2024 was
Pension and other employee benefits increased compared to the prior quarter primarily due to an increase in employee healthcare-related expenses. The increase in salaries and wages was largely due to an increase in quarterly incentive compensation expense and additional staffing for the Corporation's newly established Western New York regional banking center. The increase in professional services was primarily due to an increase in consulting fees compared to the prior quarter. The increase in data processing was primarily due to an increase in debit card procurement expenses and cybersecurity initiatives.
Income Tax Expense:
Income tax expense for the fourth quarter of 2024 was
4th Quarter 2024 vs 4th Quarter 2023
Net Interest Income:
Net interest income for the fourth quarter of 2024 totaled
Interest income on loans, including fees, increased primarily due to a
The decrease in interest expense on borrowed funds was primarily due to a decrease of
Interest expense on deposits increased primarily due to an increase of
Fully taxable equivalent net interest margin was
Provision for Credit Losses:
Provision for credit losses decreased
Non-Interest Income:
Non-interest income for the fourth quarter of 2024 was
The increase in wealth management group fee income was primarily due to fee rate increases effective July 1, 2024. The increase in service charges on deposit accounts was largely due to fee rate increases phased in during the fourth quarter of the current year. The increase in other non-interest income was mainly due to an increase in interest rate swap fee income, compared to the same period in the prior year. The decrease in the change in fair value of equity investments was mainly due to a decrease in the market value of assets held for the Corporation's deferred compensation plan during the current year period, compared to an increase in market value in the prior year period.
Non-Interest Expense:
Non-interest expense for the fourth quarter of 2024 was
Salaries and wages increased primarily due to an increase in base salaries, including merit-based increases and additional staffing for the Corporation's newly opened Western New York regional banking center, as well as an increase in incentive compensation expense. The increase in pension and other employee benefits expense was largely due to additional payroll tax expense, employee profit-sharing expense, and employee healthcare-related expense compared to the same period in the prior year. The increase in data processing was primarily due to increases in software and debit card related expenses, the addition of new contracts, and cybersecurity initiatives. The decrease in other non-interest expense was largely due to a decrease in non-loan charge-offs compared to the same period in the prior year.
Income Tax Expense:
Income tax expense for the fourth quarter of 2024 was
Asset Quality
Non-performing loans totaled
Total loan delinquencies as of December 31, 2024 decreased compared to December 31, 2023. Annualized net charge-offs to total average loans for the fourth quarter of 2024 were
The allowance for credit losses was
Balance Sheet Activity
Total assets were
Loans, net of deferred origination fees and costs increased primarily due to growth concentrated in the commercial loan portfolio, which increased
The increase in cash and cash equivalents was mainly due to an increase of
Total investment securities decreased primarily due to a decrease of
Total liabilities were
Advances and other debt increased mainly due to an increase of
Total deposits decreased by
Total shareholders’ equity was
The total equity to total assets ratio was
1 See the GAAP to Non-GAAP reconciliations
Liquidity
The Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth and non-core funding sources, such as time deposits of
As of December 31, 2024, uninsured deposits totaled
The Corporation considers brokered deposits to be an element of its deposit strategy, and anticipates it may continue utilizing brokered deposits as a secondary source of funding in support of growth. As of December 31, 2024, the Corporation had entered into brokered deposit arrangements with multiple brokers. As of December 31, 2024, brokered deposits carried terms between 3 and 48 months, totaling
Other Items
The market value of total assets under management or administration in our Wealth Management Group was
As previously announced on January 8, 2021, the Corporation's Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately
During the fourth quarter, the Bank opened a full-service branch and regional banking center at 5529 Main Street in Williamsville, New York under the Canal Bank, a division of Chemung Canal Trust Company, name. After receiving regulatory approval, the Bank consolidated its previous branch operations in Clarence, New York into its Williamsville branch operations in December, and has converted the Clarence location into administrative offices in support of the Bank's Western New York operations. Additionally, in November the Bank's Ithaca, New York "Station" branch operations were consolidated into its nearby Ithaca location on Elmira Road.
About Chemung Financial Corporation
Chemung Financial Corporation is a
This press release may be found at: www.chemungcanal.com under Investor Relations.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation's expected financial position and operating results, 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, inflation, cyber security risks, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends.
Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2023 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) | ||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||
| (in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from financial institutions | $ | 26,224 | $ | 36,247 | $ | 23,184 | $ | 22,984 | $ | 22,247 | ||||||||||
| Interest-earning deposits in other financial institutions | 20,811 | 44,193 | 47,033 | 71,878 | 14,600 | |||||||||||||||
| Total cash and cash equivalents | 47,035 | 80,440 | 70,217 | 94,862 | 36,847 | |||||||||||||||
| Equity investments | 3,235 | 3,244 | 3,090 | 3,093 | 3,046 | |||||||||||||||
| Securities available for sale | 531,442 | 554,575 | 550,927 | 566,028 | 583,993 | |||||||||||||||
| Securities held to maturity | 808 | 657 | 657 | 785 | 785 | |||||||||||||||
| FHLB and FRB stock, at cost | 9,117 | 4,189 | 5,506 | 4,071 | 5,498 | |||||||||||||||
| Total investment securities | 541,367 | 559,421 | 557,090 | 570,884 | 590,276 | |||||||||||||||
| Commercial | 1,516,525 | 1,464,205 | 1,445,258 | 1,425,437 | 1,387,321 | |||||||||||||||
| Mortgage | 274,979 | 274,099 | 271,620 | 277,246 | 277,992 | |||||||||||||||
| Consumer | 279,915 | 290,650 | 294,594 | 300,927 | 307,351 | |||||||||||||||
| Loans, net of deferred loan fees | 2,071,419 | 2,028,954 | 2,011,472 | 2,003,610 | 1,972,664 | |||||||||||||||
| Allowance for credit losses | (21,388 | ) | (21,441 | ) | (21,031 | ) | (20,471 | ) | (22,517 | ) | ||||||||||
| Loans, net | 2,050,031 | 2,007,513 | 1,990,441 | 1,983,139 | 1,950,147 | |||||||||||||||
| Loans held for sale | — | — | 381 | 96 | — | |||||||||||||||
| Premises and equipment, net | 16,375 | 14,915 | 14,731 | 14,183 | 14,571 | |||||||||||||||
| Operating lease right-of-use assets | 5,446 | 5,637 | 5,827 | 6,018 | 5,648 | |||||||||||||||
| Goodwill | 21,824 | 21,824 | 21,824 | 21,824 | 21,824 | |||||||||||||||
| Accrued interest receivable and other assets | 90,834 | 81,221 | 92,212 | 90,791 | 88,170 | |||||||||||||||
| Total assets | $ | 2,776,147 | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 625,762 | $ | 616,126 | $ | 619,192 | $ | 656,330 | $ | 653,166 | ||||||||||
| Interest-bearing demand deposits | 306,536 | 349,383 | 328,370 | 315,154 | 291,138 | |||||||||||||||
| Money market deposits | 595,123 | 630,870 | 613,131 | 631,350 | 623,714 | |||||||||||||||
| Savings deposits | 245,550 | 242,911 | 248,528 | 248,578 | 249,144 | |||||||||||||||
| Time deposits | 623,912 | 611,831 | 606,700 | 629,360 | 612,265 | |||||||||||||||
| Total deposits | 2,396,883 | 2,451,121 | 2,415,921 | 2,480,772 | 2,429,427 | |||||||||||||||
| Advances and other debt | 112,889 | 53,757 | 83,835 | 52,979 | 34,970 | |||||||||||||||
| Operating lease liabilities | 5,629 | 5,820 | 6,009 | 6,197 | 5,827 | |||||||||||||||
| Accrued interest payable and other liabilities | 45,437 | 42,863 | 48,826 | 47,814 | 45,064 | |||||||||||||||
| Total liabilities | 2,560,838 | 2,553,561 | 2,554,591 | 2,587,762 | 2,515,288 | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||
| Common stock | 53 | 53 | 53 | 53 | 53 | |||||||||||||||
| Additional paid-in capital | 48,783 | 48,457 | 48,102 | 47,794 | 47,773 | |||||||||||||||
| Retained earnings | 247,705 | 243,266 | 239,021 | 235,506 | 229,930 | |||||||||||||||
| Treasury stock, at cost | (16,167 | ) | (15,987 | ) | (16,043 | ) | (16,147 | ) | (16,502 | ) | ||||||||||
| Accumulated other comprehensive loss | (65,065 | ) | (55,135 | ) | (69,911 | ) | (70,078 | ) | (66,013 | ) | ||||||||||
| Total shareholders' equity | 215,309 | 220,654 | 201,222 | 197,128 | 195,241 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,776,147 | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | ||||||||||
| Period-end shares outstanding | 4,771 | 4,774 | 4,772 | 4,768 | 4,754 | |||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended December 31, | Percent Change | Twelve Months Ended December 31, | Percent Change | |||||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||||||
| Loans, including fees | $ | 28,805 | $ | 26,115 | 10.3 | $ | 112,128 | $ | 97,228 | 15.3 | ||||||||||||||
| Taxable securities | 3,161 | 3,533 | (10.5 | ) | 13,029 | 14,283 | (8.8 | ) | ||||||||||||||||
| Tax exempt securities | 247 | 257 | (3.9 | ) | 1,009 | 1,035 | (2.5 | ) | ||||||||||||||||
| Interest-earning deposits | 384 | 128 | 200.0 | 1,398 | 528 | 164.8 | ||||||||||||||||||
| Total interest and dividend income | 32,597 | 30,033 | 8.5 | 127,564 | 113,074 | 12.8 | ||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Deposits | 12,191 | 11,349 | 7.4 | 50,052 | 35,926 | 39.3 | ||||||||||||||||||
| Borrowed funds | 585 | 786 | (25.6 | ) | 3,453 | 2,691 | 28.3 | |||||||||||||||||
| Total interest expense | 12,776 | 12,135 | 5.3 | 53,505 | 38,617 | 38.6 | ||||||||||||||||||
| Net interest income | 19,821 | 17,898 | 10.7 | 74,059 | 74,457 | (0.5 | ) | |||||||||||||||||
| Provision (credit) for credit losses | 551 | 2,300 | (76.0 | ) | (46 | ) | 3,262 | (101.4 | ) | |||||||||||||||
| Net interest income after provision for credit losses | 19,270 | 15,598 | 23.5 | 74,105 | 71,195 | 4.1 | ||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||
| Wealth management group fee income | 3,019 | 2,744 | 10.0 | 11,573 | 10,460 | 10.6 | ||||||||||||||||||
| Service charges on deposit accounts | 1,113 | 1,001 | 11.2 | 4,042 | 3,919 | 3.1 | ||||||||||||||||||
| Interchange revenue from debit card transactions | 1,099 | 1,138 | (3.4 | ) | 4,426 | 4,606 | (3.9 | ) | ||||||||||||||||
| Net gains on securities transactions | — | (39 | ) | N/M | — | (39 | ) | N/M | ||||||||||||||||
| Change in fair value of equity investments | (54 | ) | 202 | (126.7 | ) | 179 | 103 | 73.8 | ||||||||||||||||
| Net gains on sales of loans held for sale | 52 | 54 | (3.7 | ) | 214 | 144 | 48.6 | |||||||||||||||||
| Net gains (losses) on sales of other real estate owned | 4 | 23 | N/M | (18 | ) | 37 | N/M | |||||||||||||||||
| Income from bank owned life insurance | 9 | 11 | (18.2 | ) | 38 | 43 | (11.6 | ) | ||||||||||||||||
| Other | 814 | 737 | 10.4 | 2,776 | 5,276 | (47.4 | ) | |||||||||||||||||
| Total non-interest income | 6,056 | 5,871 | 3.2 | 23,230 | 24,549 | (5.4 | ) | |||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||
| Salaries and wages | 7,450 | 6,803 | 9.5 | 28,457 | 26,832 | 6.1 | ||||||||||||||||||
| Pension and other employee benefits | 2,296 | 1,901 | 20.8 | 8,083 | 7,368 | 9.7 | ||||||||||||||||||
| Other components of net periodic pension and postretirement benefits | (218 | ) | (154 | ) | (41.6 | ) | (909 | ) | (676 | ) | (34.5 | ) | ||||||||||||
| Net occupancy | 1,472 | 1,395 | 5.5 | 5,832 | 5,637 | 3.5 | ||||||||||||||||||
| Furniture and equipment | 462 | 496 | (6.9 | ) | 1,659 | 1,728 | (4.0 | ) | ||||||||||||||||
| Data processing | 2,656 | 2,506 | 6.0 | 10,093 | 9,840 | 2.6 | ||||||||||||||||||
| Professional services | 714 | 697 | 2.4 | 2,353 | 2,293 | 2.6 | ||||||||||||||||||
| Marketing and advertising | 239 | 203 | 17.7 | 1,182 | 923 | 28.1 | ||||||||||||||||||
| Other real estate owned expense | 41 | (69 | ) | N/M | 157 | (20 | ) | N/M | ||||||||||||||||
| FDIC insurance | 503 | 520 | (3.3 | ) | 2,120 | 2,128 | (0.4 | ) | ||||||||||||||||
| Loan expense | 374 | 258 | 45.0 | 1,182 | 1,047 | 12.9 | ||||||||||||||||||
| Other | 1,834 | 2,270 | (19.2 | ) | 7,041 | 7,143 | (1.4 | ) | ||||||||||||||||
| Total non-interest expense | 17,823 | 16,826 | 5.9 | 67,250 | 64,243 | 4.7 | ||||||||||||||||||
| Income before income tax expense | 7,503 | 4,643 | 61.6 | 30,085 | 31,501 | (4.5 | ) | |||||||||||||||||
| Income tax expense | 1,589 | 841 | 88.9 | 6,414 | 6,501 | (1.3 | ) | |||||||||||||||||
| Net income | $ | 5,914 | $ | 3,802 | 55.5 | $ | 23,671 | $ | 25,000 | (5.3 | ) | |||||||||||||
| Basic and diluted earnings per share | $ | 1.24 | $ | 0.80 | $ | 4.96 | $ | 5.28 | ||||||||||||||||
| Cash dividends declared per share | $ | 0.31 | $ | 0.31 | $ | 1.24 | $ | 1.24 | ||||||||||||||||
| Average basic and diluted shares outstanding | 4,774 | 4,743 | 4,770 | 4,732 | ||||||||||||||||||||
| N/M - Not Meaningful | ||||||||||||||||||||||||
| Chemung Financial Corporation | As of or for the Three Months Ended | As of or for the Twelve Months Ended | ||||||||||||||||||||||||||
| Consolidated Financial Highlights (Unaudited) | Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
| Interest income | $ | 32,597 | $ | 32,362 | $ | 31,386 | $ | 31,219 | $ | 30,033 | $ | 127,564 | $ | 113,074 | ||||||||||||||
| Interest expense | 12,776 | 13,974 | 13,625 | 13,130 | 12,135 | 53,505 | 38,617 | |||||||||||||||||||||
| Net interest income | 19,821 | 18,388 | 17,761 | 18,089 | 17,898 | 74,059 | 74,457 | |||||||||||||||||||||
| Provision (credit) for credit losses | 551 | 564 | 879 | (2,040 | ) | 2,300 | (46 | ) | 3,262 | |||||||||||||||||||
| Net interest income after provision for credit losses | 19,270 | 17,824 | 16,882 | 20,129 | 15,598 | 74,105 | 71,195 | |||||||||||||||||||||
| Non-interest income | 6,056 | 5,919 | 5,598 | 5,657 | 5,871 | 23,230 | 24,549 | |||||||||||||||||||||
| Non-interest expense | 17,823 | 16,510 | 16,219 | 16,698 | 16,826 | 67,250 | 64,243 | |||||||||||||||||||||
| Income before income tax expense | 7,503 | 7,233 | 6,261 | 9,088 | 4,643 | 30,085 | 31,501 | |||||||||||||||||||||
| Income tax expense | 1,589 | 1,513 | 1,274 | 2,038 | 841 | 6,414 | 6,501 | |||||||||||||||||||||
| Net income | $ | 5,914 | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,802 | $ | 23,671 | $ | 25,000 | ||||||||||||||
| Basic and diluted earnings per share | $ | 1.24 | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.80 | $ | 4.96 | $ | 5.28 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,774 | 4,773 | 4,770 | 4,764 | 4,743 | 4,770 | 4,732 | |||||||||||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
| Return on average assets | 0.85 | % | 0.83 | % | 0.73 | % | 1.04 | % | 0.56 | % | 0.86 | % | 0.94 | % | ||||||||||||||
| Return on average equity | 10.73 | % | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 11.53 | % | 14.11 | % | ||||||||||||||
| Return on average tangible equity (a) | 11.92 | % | 12.07 | % | 11.56 | % | 16.29 | % | 9.86 | % | 12.90 | % | 16.09 | % | ||||||||||||||
| Efficiency ratio (unadjusted) (e) | 68.88 | % | 67.92 | % | 69.43 | % | 70.32 | % | 70.79 | % | 69.12 | % | 64.89 | % | ||||||||||||||
| Efficiency ratio (adjusted) (a) | 68.64 | % | 67.69 | % | 69.19 | % | 70.07 | % | 70.42 | % | 68.89 | % | 66.20 | % | ||||||||||||||
| Non-interest expense to average assets | 2.57 | % | 2.39 | % | 2.38 | % | 2.47 | % | 2.48 | % | 2.45 | % | 2.41 | % | ||||||||||||||
| Loans to deposits | 86.42 | % | 82.78 | % | 83.26 | % | 80.77 | % | 81.20 | % | 86.42 | % | 81.20 | % | ||||||||||||||
| YIELDS / RATES - Fully Taxable Equivalent | ||||||||||||||||||||||||||||
| Yield on loans | 5.61 | % | 5.65 | % | 5.52 | % | 5.51 | % | 5.31 | % | 5.57 | % | 5.13 | % | ||||||||||||||
| Yield on investments | 2.29 | % | 2.21 | % | 2.27 | % | 2.35 | % | 2.24 | % | 2.28 | % | 2.21 | % | ||||||||||||||
| Yield on interest-earning assets | 4.79 | % | 4.78 | % | 4.69 | % | 4.70 | % | 4.50 | % | 4.74 | % | 4.33 | % | ||||||||||||||
| Cost of interest-bearing deposits | 2.67 | % | 2.88 | % | 2.86 | % | 2.75 | % | 2.59 | % | 2.79 | % | 2.11 | % | ||||||||||||||
| Cost of borrowings | 4.74 | % | 5.08 | % | 5.04 | % | 5.15 | % | 5.52 | % | 5.03 | % | 5.17 | % | ||||||||||||||
| Cost of interest-bearing liabilities | 2.73 | % | 2.97 | % | 2.94 | % | 2.85 | % | 2.68 | % | 2.87 | % | 2.20 | % | ||||||||||||||
| Interest rate spread | 2.06 | % | 1.81 | % | 1.75 | % | 1.85 | % | 1.82 | % | 1.87 | % | 2.13 | % | ||||||||||||||
| Net interest margin, fully taxable equivalent | 2.92 | % | 2.72 | % | 2.66 | % | 2.73 | % | 2.69 | % | 2.76 | % | 2.85 | % | ||||||||||||||
| CAPITAL | ||||||||||||||||||||||||||||
| Total equity to total assets at end of period | 7.76 | % | 7.95 | % | 7.30 | % | 7.08 | % | 7.20 | % | 7.76 | % | 7.20 | % | ||||||||||||||
| Tangible equity to tangible assets at end of period (a) | 7.02 | % | 7.22 | % | 6.56 | % | 6.34 | % | 6.45 | % | 7.02 | % | 6.45 | % | ||||||||||||||
| Book value per share | $ | 45.13 | $ | 46.22 | $ | 42.17 | $ | 41.34 | $ | 41.07 | $ | 45.13 | $ | 41.07 | ||||||||||||||
| Tangible book value per share (a) | 40.55 | 41.65 | 37.59 | 36.77 | 36.48 | 40.55 | 36.48 | |||||||||||||||||||||
| Period-end market value per share | 48.81 | 48.02 | 48.00 | 42.48 | 49.80 | 48.81 | 49.80 | |||||||||||||||||||||
| Dividends declared per share | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 1.24 | 1.24 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Loans and loans held for sale (b) | $ | 2,046,270 | $ | 2,020,280 | $ | 2,009,823 | $ | 1,989,185 | $ | 1,956,022 | $ | 2,016,481 | $ | 1,898,986 | ||||||||||||||
| Interest-earning assets | 2,711,995 | 2,699,968 | 2,699,402 | 2,681,059 | 2,654,638 | 2,698,148 | 2,621,251 | |||||||||||||||||||||
| Total assets | 2,761,875 | 2,751,392 | 2,740,967 | 2,724,391 | 2,688,536 | 2,744,721 | 2,660,329 | |||||||||||||||||||||
| Deposits | 2,446,662 | 2,410,735 | 2,419,169 | 2,402,215 | 2,397,663 | 2,419,744 | 2,377,736 | |||||||||||||||||||||
| Total equity | 219,254 | 210,421 | 195,375 | 195,860 | 174,868 | 205,280 | 177,187 | |||||||||||||||||||||
| Tangible equity (a) | 197,430 | 188,597 | 173,551 | 174,036 | 153,044 | 183,456 | 155,363 | |||||||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||||||||||
| Net charge-offs | $ | 594 | $ | 78 | $ | 306 | $ | 182 | $ | 171 | $ | 1,160 | $ | 941 | ||||||||||||||
| Non-performing loans (c) | 8,954 | 10,545 | 8,195 | 7,835 | 10,411 | 8,954 | 10,411 | |||||||||||||||||||||
| Non-performing assets (d) | 9,606 | 11,134 | 8,872 | 8,394 | 10,737 | 9,606 | 10,737 | |||||||||||||||||||||
| Allowance for credit losses | 21,388 | 21,441 | 21,031 | 20,471 | 22,517 | 21,388 | 22,517 | |||||||||||||||||||||
| Annualized net charge-offs to average loans | 0.12 | % | 0.02 | % | 0.06 | % | 0.04 | % | 0.03 | % | 0.06 | % | 0.05 | % | ||||||||||||||
| Non-performing loans to total loans | 0.43 | % | 0.52 | % | 0.41 | % | 0.39 | % | 0.53 | % | 0.43 | % | 0.53 | % | ||||||||||||||
| Non-performing assets to total assets | 0.35 | % | 0.40 | % | 0.32 | % | 0.30 | % | 0.40 | % | 0.35 | % | 0.40 | % | ||||||||||||||
| Allowance for credit losses to total loans | 1.03 | % | 1.06 | % | 1.05 | % | 1.02 | % | 1.14 | % | 1.03 | % | 1.14 | % | ||||||||||||||
| Allowance for credit losses to non-performing loans | 238.87 | % | 203.33 | % | 256.63 | % | 261.28 | % | 216.28 | % | 238.87 | % | 216.28 | % | ||||||||||||||
| (a) See the GAAP to Non-GAAP reconciliations. | ||||||||||||||||||||||||||||
| (b) Loans and loans held for sale do not reflect the allowance for credit losses. | ||||||||||||||||||||||||||||
| (c) Non-performing loans include non-accrual loans only. | ||||||||||||||||||||||||||||
| (d) Non-performing assets include non-performing loans plus other real estate owned and repossessed vehicles. | ||||||||||||||||||||||||||||
| (e) Efficiency ratio (unadjusted) is non-interest expense divided by the total of net interest income plus non-interest income. | ||||||||||||||||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||||||||||||
| Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited) | ||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2024 vs. 2023 | ||||||||||||||||||||||||||||||||
| (in thousands) | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | Total Change | Due to Volume | Due to Rate | |||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Commercial loans | $ | 1,486,012 | $ | 22,069 | 5.91 | % | $ | 1,369,198 | $ | 19,649 | 5.69 | % | $ | 2,420 | $ | 1,665 | $ | 755 | ||||||||||||||||
| Mortgage loans | 274,705 | 2,739 | 3.99 | % | 279,361 | 2,531 | 3.59 | % | 208 | (46 | ) | 254 | ||||||||||||||||||||||
| Consumer loans | 285,553 | 4,051 | 5.64 | % | 307,463 | 3,991 | 5.15 | % | 60 | (299 | ) | 359 | ||||||||||||||||||||||
| Taxable securities | 594,667 | 3,169 | 2.12 | % | 647,650 | 3,537 | 2.17 | % | (368 | ) | (287 | ) | (81 | ) | ||||||||||||||||||||
| Tax-exempt securities | 37,776 | 273 | 2.88 | % | 40,339 | 284 | 2.79 | % | (11 | ) | (19 | ) | 8 | |||||||||||||||||||||
| Interest-earning deposits | 33,282 | 384 | 4.59 | % | 10,627 | 128 | 4.78 | % | 256 | 261 | (5 | ) | ||||||||||||||||||||||
| Total interest-earning assets | 2,711,995 | 32,685 | 4.79 | % | 2,654,638 | 30,120 | 4.50 | % | 2,565 | 1,275 | 1,290 | |||||||||||||||||||||||
| Non interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Cash and due from banks | 25,056 | 25,142 | ||||||||||||||||||||||||||||||||
| Other assets | 46,352 | 29,153 | ||||||||||||||||||||||||||||||||
| Allowance for credit losses | (21,528 | ) | (20,397 | ) | ||||||||||||||||||||||||||||||
| Total assets | $ | 2,761,875 | $ | 2,688,536 | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 327,223 | $ | 1,391 | 1.69 | % | $ | 285,733 | $ | 1,176 | 1.63 | % | $ | 215 | $ | 172 | $ | 43 | ||||||||||||||||
| Savings and money market | 871,196 | 4,278 | 1.95 | % | 900,367 | 4,383 | 1.93 | % | (105 | ) | (148 | ) | 43 | |||||||||||||||||||||
| Time deposits | 540,817 | 5,618 | 4.13 | % | 447,273 | 4,374 | 3.88 | % | 1,244 | 951 | 293 | |||||||||||||||||||||||
| Brokered deposits | 74,861 | 904 | 4.80 | % | 104,043 | 1,416 | 5.40 | % | (512 | ) | (367 | ) | (145 | ) | ||||||||||||||||||||
| FHLBNY overnight advances | 41,408 | 505 | 4.77 | % | 53,390 | 758 | 5.63 | % | (253 | ) | (150 | ) | (103 | ) | ||||||||||||||||||||
| FRB advances and other debt | 6,987 | 80 | 4.56 | % | 3,074 | 28 | 3.61 | % | 52 | 44 | 8 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 1,862,492 | 12,776 | 2.73 | % | 1,793,880 | 12,135 | 2.68 | % | 641 | 502 | 139 | |||||||||||||||||||||||
| Non interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Demand deposits | 632,565 | 660,247 | ||||||||||||||||||||||||||||||||
| Other liabilities | 47,564 | 59,541 | ||||||||||||||||||||||||||||||||
| Total liabilities | 2,542,621 | 2,513,668 | ||||||||||||||||||||||||||||||||
| Shareholders' equity | 219,254 | 174,868 | ||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,761,875 | $ | 2,688,536 | ||||||||||||||||||||||||||||||
| Fully taxable equivalent net interest income | 19,909 | 17,985 | $ | 1,924 | $ | 773 | $ | 1,151 | ||||||||||||||||||||||||||
| Net interest rate spread (1) | 2.06 | % | 1.82 | % | ||||||||||||||||||||||||||||||
| Net interest margin, fully taxable equivalent (2) | 2.92 | % | 2.69 | % | ||||||||||||||||||||||||||||||
| Taxable equivalent adjustment | (88 | ) | (87 | ) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 19,821 | $ | 17,898 | ||||||||||||||||||||||||||||||
| (1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities. | ||||||||||||||||||||||||||||||||||
| (2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets. | ||||||||||||||||||||||||||||||||||
| Chemung Financial Corporation | ||||||||||||||||||||||||||||||||||
| Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited) | ||||||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2024 | Twelve Months Ended December 31, 2023 | Twelve Months Ended December 31, 2024 vs. 2023 | ||||||||||||||||||||||||||||||||
| (in thousands) | Average Balance | Interest | Yield / Rate | Average Balance | Interest | Yield / Rate | Total Change | Due to Volume | Due to Rate | |||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Commercial loans | $ | 1,446,493 | $ | 85,570 | 5.92 | % | $ | 1,309,692 | $ | 72,698 | 5.55 | % | $ | 12,872 | $ | 7,857 | $ | 5,015 | ||||||||||||||||
| Mortgage loans | 274,801 | 10,618 | 3.86 | % | 283,093 | 10,084 | 3.56 | % | 534 | (302 | ) | 836 | ||||||||||||||||||||||
| Consumer loans | 295,187 | 16,165 | 5.48 | % | 306,201 | 14,664 | 4.79 | % | 1,501 | (547 | ) | 2,048 | ||||||||||||||||||||||
| Taxable securities | 613,375 | 13,046 | 2.13 | % | 671,345 | 14,295 | 2.13 | % | (1,249 | ) | (1,249 | ) | — | |||||||||||||||||||||
| Tax-exempt securities | 39,032 | 1,103 | 2.83 | % | 40,506 | 1,171 | 2.89 | % | (68 | ) | (44 | ) | (24 | ) | ||||||||||||||||||||
| Interest-earning deposits | 29,260 | 1,398 | 4.78 | % | 10,414 | 528 | 5.07 | % | 870 | 902 | (32 | ) | ||||||||||||||||||||||
| Total interest-earning assets | 2,698,148 | 127,900 | 4.74 | % | 2,621,251 | 113,440 | 4.33 | % | 14,460 | 6,617 | 7,843 | |||||||||||||||||||||||
| Non interest-earning assets: | ||||||||||||||||||||||||||||||||||
| Cash and due from banks | 25,112 | 25,419 | ||||||||||||||||||||||||||||||||
| Other assets | 42,950 | 33,871 | ||||||||||||||||||||||||||||||||
| Allowance for credit losses | (21,489 | ) | (20,212 | ) | ||||||||||||||||||||||||||||||
| Total assets | $ | 2,744,721 | $ | 2,660,329 | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 313,070 | $ | 5,561 | 1.78 | % | $ | 286,097 | $ | 3,136 | 1.10 | % | $ | 2,425 | $ | 321 | $ | 2,104 | ||||||||||||||||
| Savings and money market | 863,849 | 17,468 | 2.02 | % | 899,996 | 13,027 | 1.45 | % | 4,441 | (542 | ) | 4,983 | ||||||||||||||||||||||
| Time deposits | 526,727 | 22,221 | 4.22 | % | 375,545 | 12,414 | 3.31 | % | 9,807 | 5,827 | 3,980 | |||||||||||||||||||||||
| Brokered deposits | 90,729 | 4,802 | 5.29 | % | 140,845 | 7,349 | 5.22 | % | (2,547 | ) | (2,645 | ) | 98 | |||||||||||||||||||||
| FHLBNY overnight advances | 21,907 | 1,151 | 5.17 | % | 48,851 | 2,577 | 5.28 | % | (1,426 | ) | (1,374 | ) | (52 | ) | ||||||||||||||||||||
| FRB advances and other debt | 46,363 | 2,302 | 4.97 | % | 3,177 | 114 | 3.59 | % | 2,188 | 2,128 | 60 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 1,862,645 | 53,505 | 2.87 | % | 1,754,511 | 38,617 | 2.20 | % | 14,888 | 3,715 | 11,173 | |||||||||||||||||||||||
| Non interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Demand deposits | 625,369 | 675,253 | ||||||||||||||||||||||||||||||||
| Other liabilities | 51,427 | 53,378 | ||||||||||||||||||||||||||||||||
| Total liabilities | 2,539,441 | 2,483,142 | ||||||||||||||||||||||||||||||||
| Shareholders' equity | 205,280 | 177,187 | ||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,744,721 | $ | 2,660,329 | ||||||||||||||||||||||||||||||
| Fully taxable equivalent net interest income | 74,395 | 74,823 | $ | (428 | ) | $ | 2,902 | $ | (3,330 | ) | ||||||||||||||||||||||||
| Net interest rate spread (1) | 1.87 | % | 2.13 | % | ||||||||||||||||||||||||||||||
| Net interest margin, fully taxable equivalent (2) | 2.76 | % | 2.85 | % | ||||||||||||||||||||||||||||||
| Taxable equivalent adjustment | (336 | ) | (366 | ) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 74,059 | $ | 74,457 | ||||||||||||||||||||||||||||||
| (1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities. | ||||||||||||||||||||||||||||||||||
| (2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets. | ||||||||||||||||||||||||||||||||||
Chemung Financial Corporation
GAAP to Non-GAAP Reconciliations (Unaudited)
The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.
In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.
The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them.
Fully Taxable Equivalent Net Interest Income and Net Interest Margin
Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices.
| As of or for the | ||||||||||||||||||||||||||||
| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except ratio data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 19,821 | $ | 18,388 | $ | 17,761 | $ | 18,089 | $ | 17,898 | $ | 74,059 | $ | 74,457 | ||||||||||||||
| Fully taxable equivalent adjustment | 88 | 83 | 81 | 84 | 87 | 336 | 366 | |||||||||||||||||||||
| Fully taxable equivalent net interest income (non-GAAP) | $ | 19,909 | $ | 18,471 | $ | 17,842 | $ | 18,173 | $ | 17,985 | $ | 74,395 | $ | 74,823 | ||||||||||||||
| Average interest-earning assets (GAAP) | $ | 2,711,995 | $ | 2,699,968 | $ | 2,699,402 | $ | 2,681,059 | $ | 2,654,638 | $ | 2,698,148 | $ | 2,621,251 | ||||||||||||||
| Net interest margin - fully taxable equivalent (non-GAAP) | 2.92 | % | 2.72 | % | 2.66 | % | 2.73 | % | 2.69 | % | 2.76 | % | 2.85 | % | ||||||||||||||
Efficiency Ratio
The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.
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| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except ratio data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| EFFICIENCY RATIO | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 19,821 | $ | 18,388 | $ | 17,761 | $ | 18,089 | $ | 17,898 | $ | 74,059 | $ | 74,457 | ||||||||||||||
| Fully taxable equivalent adjustment | 88 | 83 | 81 | 84 | 87 | 336 | 366 | |||||||||||||||||||||
| Fully taxable equivalent net interest income (non-GAAP) | $ | 19,909 | $ | 18,471 | $ | 17,842 | $ | 18,173 | $ | 17,985 | $ | 74,395 | $ | 74,823 | ||||||||||||||
| Non-interest income (GAAP) | $ | 6,056 | $ | 5,919 | $ | 5,598 | $ | 5,657 | $ | 5,871 | $ | 23,230 | $ | 24,549 | ||||||||||||||
| Less: net (gains) losses on security transactions | — | — | — | — | 39 | — | 39 | |||||||||||||||||||||
| Less: recognition of employee retention tax credit | — | — | — | — | — | — | (2,370 | ) | ||||||||||||||||||||
| Adjusted non-interest income (non-GAAP) | $ | 6,056 | $ | 5,919 | $ | 5,598 | $ | 5,657 | $ | 5,910 | $ | 23,230 | $ | 22,218 | ||||||||||||||
| Non-interest expense (GAAP) | $ | 17,823 | $ | 16,510 | $ | 16,219 | $ | 16,698 | $ | 16,826 | $ | 67,250 | $ | 64,243 | ||||||||||||||
| Efficiency ratio (unadjusted) | 68.88 | % | 67.92 | % | 69.43 | % | 70.32 | % | 70.79 | % | 69.12 | % | 64.89 | % | ||||||||||||||
| Efficiency ratio (adjusted) | 68.64 | % | 67.69 | % | 69.19 | % | 70.07 | % | 70.42 | % | 68.89 | % | 66.20 | % | ||||||||||||||
Tangible Equity and Tangible Assets (Period-End)
Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.
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| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except per share and ratio data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| TANGIBLE EQUITY AND TANGIBLE ASSETS | ||||||||||||||||||||||||||||
| (PERIOD END) | ||||||||||||||||||||||||||||
| Total shareholders' equity (GAAP) | $ | 215,309 | $ | 220,654 | $ | 201,222 | $ | 197,128 | $ | 195,241 | $ | 215,309 | $ | 195,241 | ||||||||||||||
| Less: intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
| Tangible equity (non-GAAP) | $ | 193,485 | $ | 198,830 | $ | 179,398 | $ | 175,304 | $ | 173,417 | $ | 193,485 | $ | 173,417 | ||||||||||||||
| Total assets (GAAP) | $ | 2,776,147 | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | $ | 2,776,147 | $ | 2,710,529 | ||||||||||||||
| Less: intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 2,754,323 | $ | 2,752,391 | $ | 2,733,989 | $ | 2,763,066 | $ | 2,688,705 | $ | 2,754,323 | $ | 2,688,705 | ||||||||||||||
| Total equity to total assets at end of period (GAAP) | 7.76 | % | 7.95 | % | 7.30 | % | 7.08 | % | 7.20 | % | 7.76 | % | 7.20 | % | ||||||||||||||
| Book value per share (GAAP) | $ | 45.13 | $ | 46.22 | $ | 42.17 | $ | 41.34 | $ | 41.07 | $ | 45.13 | $ | 41.07 | ||||||||||||||
| Tangible equity to tangible assets at end of period (non-GAAP) | 7.02 | % | 7.22 | % | 6.56 | % | 6.34 | % | 6.45 | % | 7.02 | % | 6.45 | % | ||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 40.55 | $ | 41.65 | $ | 37.59 | $ | 36.77 | $ | 36.48 | $ | 40.55 | $ | 36.48 | ||||||||||||||
Tangible Equity (Average)
Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.
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| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except ratio data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| TANGIBLE EQUITY (AVERAGE) | ||||||||||||||||||||||||||||
| Total average shareholders' equity (GAAP) | $ | 219,254 | $ | 210,421 | $ | 195,375 | $ | 195,860 | $ | 174,868 | $ | 205,280 | $ | 177,187 | ||||||||||||||
| Less: average intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
| Average tangible equity (non-GAAP) | $ | 197,430 | $ | 188,597 | $ | 173,551 | $ | 174,036 | $ | 153,044 | $ | 183,456 | $ | 155,363 | ||||||||||||||
| Return on average equity (GAAP) | 10.73 | % | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 11.53 | % | 14.11 | % | ||||||||||||||
| Return on average tangible equity (non-GAAP) | 11.92 | % | 12.07 | % | 11.56 | % | 16.29 | % | 9.86 | % | 12.90 | % | 16.09 | % | ||||||||||||||
Adjustments for Certain Items of Income or Expense
In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.
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| As of or for the Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
| (in thousands, except per share and ratio data) | 2024 | 2024 | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| NON-GAAP NET INCOME | ||||||||||||||||||||||||||||
| Reported net income (GAAP) | $ | 5,914 | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,802 | $ | 23,671 | $ | 25,000 | ||||||||||||||
| Net (gains) losses on security transactions (net of tax) | — | — | — | — | 29 | — | 29 | |||||||||||||||||||||
| Recognition of employee retention tax credit (net of tax) | — | — | — | — | — | — | (1,873 | ) | ||||||||||||||||||||
| Net income (non-GAAP) | $ | 5,914 | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,831 | $ | 23,671 | $ | 23,156 | ||||||||||||||
| Average basic and diluted shares outstanding | 4,774 | 4,773 | 4,770 | 4,764 | 4,743 | 4,770 | 4,732 | |||||||||||||||||||||
| Reported basic and diluted earnings per share (GAAP) | $ | 1.24 | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.80 | $ | 4.96 | $ | 5.28 | ||||||||||||||
| Reported return on average assets (GAAP) | 0.85 | % | 0.83 | % | 0.73 | % | 1.04 | % | 0.56 | % | 0.86 | % | 0.94 | % | ||||||||||||||
| Reported return on average equity (GAAP) | 10.73 | % | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 11.53 | % | 14.11 | % | ||||||||||||||
| Basic and diluted earnings per share (non-GAAP) | $ | 1.24 | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.81 | $ | 4.96 | $ | 4.89 | ||||||||||||||
| Return on average assets (non-GAAP) | 0.85 | % | 0.83 | % | 0.73 | % | 1.04 | % | 0.57 | % | 0.86 | % | 0.87 | % | ||||||||||||||
| Return on average equity (non-GAAP) | 10.73 | % | 10.81 | % | 10.27 | % | 14.48 | % | 8.69 | % | 11.53 | % | 13.07 | % | ||||||||||||||
Category: Financial
Source: Chemung Financial Corp
For further information contact:
Dale M. McKim, III, EVP and CFO
dmckim@chemungcanal.com
Phone: 607-737-3714
FAQ
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