Chemung Financial Corporation Reports Third Quarter 2024 Net Income of $5.7 million, or $1.19 per share
Chemung Financial (CHMG) reported net income of $5.7 million, or $1.19 per share, for the third quarter of 2024. This compares to $5.0 million ($1.05 per share) in Q2 2024 and $7.6 million ($1.61 per share) in Q3 2023. Key highlights include:
- Opening of a new branch in Williamsville, New York
- Improvement in tangible equity to tangible assets ratio by 66 basis points to 7.22%
- Increase in net interest income to $18.4 million, up 3.4% from Q2 2024
- Non-interest income rose to $5.9 million, a 5.4% increase from Q2 2024
- Non-interest expense increased to $16.5 million, up 1.9% from Q2 2024
The company saw improvements in interest income on loans and deposits, partially offset by higher interest expenses. Asset quality remained stable with non-performing loans at 0.52% of total loans.
Chemung Financial (CHMG) ha riportato un utile netto di 5,7 milioni di dollari, ovvero 1,19 dollari per azione, per il terzo trimestre del 2024. Questo confronto è fatto con i 5,0 milioni di dollari (1,05 dollari per azione) del Q2 2024 e i 7,6 milioni di dollari (1,61 dollari per azione) del Q3 2023. I principali punti salienti includono:
- Apertura di una nuova filiale a Williamsville, New York
- Miglioramento del rapporto patrimonio tangibile rispetto agli asset tangibili di 66 punti base al 7,22%
- Aumento del reddito netto da interessi a 18,4 milioni di dollari, in aumento del 3,4% rispetto al Q2 2024
- Il reddito non da interessi è salito a 5,9 milioni di dollari, con un incremento del 5,4% rispetto al Q2 2024
- La spesa non da interessi è aumentata a 16,5 milioni di dollari, in crescita dell'1,9% rispetto al Q2 2024
L'azienda ha registrato miglioramenti nel reddito da interessi su prestiti e depositi, parzialmente compensati da costi di interesse più elevati. La qualità degli asset è rimasta stabile con prestiti non performanti al 0,52% dei prestiti totali.
Chemung Financial (CHMG) reportó un ingreso neto de 5,7 millones de dólares, o 1,19 dólares por acción, para el tercer trimestre de 2024. Esto es comparado con 5,0 millones de dólares (1,05 dólares por acción) en el Q2 2024 y 7,6 millones de dólares (1,61 dólares por acción) en el Q3 2023. Los puntos destacados incluyen:
- Apertura de una nueva sucursal en Williamsville, Nueva York
- Mejora en la relación de capital tangible a activos tangibles en 66 puntos básicos al 7,22%
- Aumento en el ingreso neto por intereses a 18,4 millones de dólares, un incremento del 3,4% respecto al Q2 2024
- El ingreso no por intereses subió a 5,9 millones de dólares, un aumento del 5,4% respecto al Q2 2024
- Los gastos no por intereses aumentaron a 16,5 millones de dólares, subiendo un 1,9% respecto al Q2 2024
La compañía vio mejoras en los ingresos por intereses en préstamos y depósitos, parcialmente compensadas por mayores gastos por intereses. La calidad de los activos se mantuvo estable, con préstamos no productivos en el 0,52% del total de préstamos.
Chemung Financial (CHMG)은 2024년 3분기에 570만 달러의 순이익, 즉 주당 1.19달러를 보고했습니다. 이는 2024년 2분기의 500만 달러(주당 1.05달러) 및 2023년 3분기의 760만 달러(주당 1.61달러)와 비교됩니다. 주요 하이라이트는 다음과 같습니다:
- 뉴욕 윌리엄스빌에 새 지점 개설
- 실질 자산 대비 실질 자본 비율이 66bp 개선되어 7.22% 도달
- 순이자 수익이 1840만 달러로 3.4% 증가, Q2 2024 대비
- 비이자 수익이 590만 달러로 5.4% 증가, Q2 2024 대비
- 비이자 비용이 1650만 달러로 1.9% 증가, Q2 2024 대비
회사는 대출 및 예금에 대한 이자 수익 개선을 보였으나, 높은 이자 비용으로 인해 일부 상쇄되었습니다. 자산 품질은 총 대출의 0.52%에 해당하는 부실 대출로 안정적인 상태를 유지했습니다.
Chemung Financial (CHMG) a annoncé un revenu net de 5,7 millions de dollars, soit 1,19 dollar par action, pour le troisième trimestre de 2024. Cela se compare à 5,0 millions de dollars (1,05 dollar par action) au Q2 2024 et 7,6 millions de dollars (1,61 dollar par action) au Q3 2023. Les points clés comprennent :
- Ouverture d'une nouvelle agence à Williamsville, New York
- Amélioration du ratio des capitaux tangibles aux actifs tangibles de 66 points de base à 7,22%
- Augmentation du revenu net d'intérêts à 18,4 millions de dollars, en hausse de 3,4% par rapport au Q2 2024
- Le revenu non d'intérêts a augmenté à 5,9 millions de dollars, soit une augmentation de 5,4% par rapport au Q2 2024
- Les dépenses non d'intérêts ont augmenté à 16,5 millions de dollars, soit une hausse de 1,9% par rapport au Q2 2024
La société a constaté des améliorations des revenus d'intérêts sur les prêts et les dépôts, partiellement compensées par des charges d'intérêts plus élevées. La qualité des actifs est restée stable, avec des prêts non performants représentant 0,52% des prêts totaux.
Chemung Financial (CHMG) berichtete von einem Nettoergebnis von 5,7 Millionen Dollar, oder 1,19 Dollar pro Aktie, für das dritte Quartal 2024. Dies steht im Vergleich zu 5,0 Millionen Dollar (1,05 Dollar pro Aktie) im Q2 2024 und 7,6 Millionen Dollar (1,61 Dollar pro Aktie) im Q3 2023. Wichtige Highlights sind:
- Eröffnung einer neuen Filiale in Williamsville, New York
- Verbesserung des Verhältnisses von tangible Equities zu tangible Assets um 66 Basispunkte auf 7,22%
- Anstieg der Nettozinseinnahmen auf 18,4 Millionen Dollar, ein Anstieg von 3,4% im Vergleich zu Q2 2024
- Non-Interest-Einnahmen stiegen auf 5,9 Millionen Dollar, ein Anstieg von 5,4% gegenüber Q2 2024
- Non-Interest-Aufwendungen erhöhten sich auf 16,5 Millionen Dollar, ein Anstieg von 1,9% im Vergleich zu Q2 2024
Das Unternehmen verzeichnete Verbesserungen bei den Zinseinnahmen aus Krediten und Einlagen, die teilweise durch höhere Zinsaufwendungen ausgeglichen wurden. Die Asset-Qualität blieb stabil, mit notleidenden Krediten in Höhe von 0,52% der Gesamtkredite.
- Net income increased to $5.7 million in Q3 2024, up from $5.0 million in Q2 2024
- Net interest income rose 3.4% quarter-over-quarter to $18.4 million
- Non-interest income increased 5.4% quarter-over-quarter to $5.9 million
- Tangible equity to tangible assets ratio improved by 66 basis points to 7.22%
- Opened a new full-service branch in Williamsville, New York
- Net income decreased year-over-year from $7.6 million in Q3 2023 to $5.7 million in Q3 2024
- Non-interest expense increased 1.9% quarter-over-quarter to $16.5 million
- Interest expense on deposits and borrowed funds increased compared to the previous year
- Total loan delinquencies increased compared to December 31, 2023
Insights
Chemung Financial 's Q3 2024 results show a solid performance with net income increasing to
- Net interest income rose
3.4% quarter-over-quarter to$18.4 million , driven by higher loan yields and increased interest-earning deposits. - Non-interest income grew
5.4% to$5.9 million , boosted by wealth management fees and improved equity investment values. - The bank's balance sheet appears well-positioned for a potential rate-cutting cycle, with higher-yielding loans driving interest income while funding costs moderate.
- Asset quality remains stable with non-performing loans at
0.52% of total loans, slightly down from year-end 2023.
The expansion into Western New York with a new branch in Williamsville demonstrates growth initiatives. However, investors should note the
Chemung Financial's Q3 results reflect adept management in a complex banking environment. The 66 basis point improvement in tangible equity to tangible assets ratio to
The bank's strategic focus on higher-yielding commercial loans is paying off, with an 11 basis point increase in average yield quarter-over-quarter. The
The shift towards higher-cost deposits, particularly time deposits, is a trend to watch. While it's boosting interest income, it could pressure margins if not managed carefully. The bank's ability to maintain a stable net interest margin of
ELMIRA, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of
“Our balance sheet is well positioned as we enter into this rate cutting cycle. We are seeing the benefit of higher yielding loans driving interest income, while funding costs continue to moderate,” said Anders M. Tomson, President and CEO of Chemung Financial Corporation. “Strong non-interest income production and a stable credit environment were a welcome addition to an already strong quarter,” Tomson added.
"As we begin operations in our new Williamsville, New York location, we are eager to continue fostering an environment committed to our mission of community-oriented banking, both in Western New York and throughout the Bank's footprint," concluded Tomson.
Third Quarter Highlights:
- The Corporation 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 on October 11, 2024.
- Tangible equity to tangible assets improved by 66 basis points to
7.22% as of September 30, 2024, compared to prior quarter-end, and 77 basis points compared to December 31, 2023.1 - Cost of interest-bearing liabilities increased by three basis points during the third quarter of 2024, compared to a nine basis points increase during the second quarter of 2024.
- Dividends declared during the third quarter 2024 were
$0.31 per share.
1 See the GAAP to Non-GAAP reconciliations.
3rd Quarter 2024 vs 2nd Quarter 2024
Net Interest Income:
Net interest income for the third quarter of 2024 totaled
Interest income on loans, including fees, increased primarily due to an increase of 11 basis points in the average yield on commercial loans, compared to the prior quarter. The increase in the average yield on commercial loans was primarily attributable to higher yielding commercial real estate originations during 2024, and the recognition of
Interest expense on deposits increased primarily due to growth in the average balances of customer time deposits of
The increase in interest expense on borrowed funds was due primarily to an increase in the average cost of total borrowings of four basis points, and an increase in the average balances of borrowed funds 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 third quarter of 2024 was
The increase in wealth management group fee income was primarily attributable to increases in fee rates effective July 1, 2024. The increase in service charges on deposit accounts was primarily attributable to an increase in overdraft transaction volume, compared to the prior quarter. The increase in the change in fair value of equity investments was primarily attributable to an increase in the market value of assets held for the Corporation's deferred compensation plan, and the increase in gains on sales of loans held for sale was primarily attributable to an increase in the volume of loans sold to the secondary market during the current period, due to an increase in total residential loan originations in the current period.
Non-Interest Expense:
Non-interest expense for the third quarter of 2024 was
The increase in salaries and wages compared to the prior quarter was primarily attributable to additional staffing for the Corporation's newly established Western New York regional banking center, and expense related to an increase in the market value of assets held for the Corporation's deferred compensation plan. The increase in data processing expense was primarily attributable to the timing of various vendor credits and rebates, and an increase in card procurement expense. The increase in other non-interest expense was primarily attributable to an increase supplies and postage expense, and an increase in charitable contributions. The decrease in pension and other employee benefits was primarily attributable to lower healthcare related expenses in the current quarter, compared to the prior quarter.
Income Tax Expense:
Income tax expense for the third quarter of 2024 was
3rd Quarter 2024 vs 3rd Quarter 2023
Net Interest Income:
Net interest income for the third quarter of 2024 totaled
Interest income on loans, including fees, increased primarily due to a
Interest expense on deposits increased primarily due to a 44 basis points increase in the average interest rate paid on total interest-bearing deposits, which included brokered deposits, and an increase of
The increase in interest expense on borrowed funds was primarily attributable to a
Fully taxable equivalent net interest margin was
Provision for Credit Losses:
Provision for credit losses increased
Non-Interest Income:
Non-interest income for the third quarter of 2024 was
Non-Interest Expense:
Non-interest expense for the third quarter of 2024 was
The increase in salaries and wages was primarily attributable to an increase in salaries, including additional staffing for the Corporation's newly opened Western New York regional banking center, as well as an increase in the market value of the assets held for the Corporation's deferred compensation plan. The increase in other non-interest expense was primarily attributable to increases in supplies and postage expense, and losses recognized on the sale of repossessed vehicles in the current quarter, compared to the same period in the prior year. The decrease in pension and other employee benefits was primarily attributable to a decrease in healthcare related expenses in the current quarter, compared to the same period in the prior year.
Income Tax Expense:
Income tax expense for the third quarter of 2024 was
Asset Quality
Non-performing loans totaled
Total loan delinquencies as of September 30, 2024 increased compared to December 31, 2023, primarily attributable to increases in residential mortgage and consumer loan delinquency rates during the period. The majority of past due residential mortgage balances were past due between 30-59 days. Commercial loan delinquency rates declined as of September 30, 2024, compared to December 31, 2023. Annualized net charge-offs to total average loans for the third quarter of 2024 were
The allowance for credit losses was
The allowance for credit losses was
Balance Sheet Activity
Total assets were
The increase in loans, net of deferred origination fees and costs, was concentrated in the commercial loan portfolio, which increased by
The increase in cash and cash equivalents was primarily due to
Total investment securities decreased primarily due to a decrease of
Total liabilities were
Total deposits increased by
The increase in advances and other debt was primarily attributable to a
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 September 30, 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 September 30, 2024, the Corporation had entered into brokered deposit arrangements with multiple brokers. As of September 30, 2024, brokered deposits carried terms between 2 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
The Bank opened a full-service branch and regional banking center at 5529 Main Street in Williamsville, New York on October 11, 2024 under the Canal Bank, a division of Chemung Canal Trust Company, name. The Bank has received regulatory approval to convert its previous branch location in Clarence, New York into an administrative office in support of the Bank's Western New York operations.
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) | ||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
(in thousands) | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from financial institutions | $ | 36,247 | $ | 23,184 | $ | 22,984 | $ | 22,247 | $ | 52,563 | ||||||||||
Interest-earning deposits in other financial institutions | 44,193 | 47,033 | 71,878 | 14,600 | 23,017 | |||||||||||||||
Total cash and cash equivalents | 80,440 | 70,217 | 94,862 | 36,847 | 75,580 | |||||||||||||||
Equity investments | 3,244 | 3,090 | 3,093 | 3,046 | 2,811 | |||||||||||||||
Securities available for sale | 554,575 | 550,927 | 566,028 | 583,993 | 569,004 | |||||||||||||||
Securities held to maturity | 657 | 657 | 785 | 785 | 1,804 | |||||||||||||||
FHLB and FRB stock, at cost | 4,189 | 5,506 | 4,071 | 5,498 | 4,053 | |||||||||||||||
Total investment securities | 559,421 | 557,090 | 570,884 | 590,276 | 574,861 | |||||||||||||||
Commercial | 1,464,205 | 1,445,258 | 1,425,437 | 1,387,321 | 1,341,017 | |||||||||||||||
Mortgage | 274,099 | 271,620 | 277,246 | 277,992 | 281,361 | |||||||||||||||
Consumer | 290,650 | 294,594 | 300,927 | 307,351 | 308,310 | |||||||||||||||
Loans, net of deferred loan fees | 2,028,954 | 2,011,472 | 2,003,610 | 1,972,664 | 1,930,688 | |||||||||||||||
Allowance for credit losses | (21,441 | ) | (21,031 | ) | (20,471 | ) | (22,517 | ) | (20,252 | ) | ||||||||||
Loans, net | 2,007,513 | 1,990,441 | 1,983,139 | 1,950,147 | 1,910,436 | |||||||||||||||
Loans held for sale | — | 381 | 96 | — | — | |||||||||||||||
Premises and equipment, net | 14,915 | 14,731 | 14,183 | 14,571 | 15,036 | |||||||||||||||
Operating lease right-of-use assets | 5,637 | 5,827 | 6,018 | 5,648 | 5,850 | |||||||||||||||
Goodwill | 21,824 | 21,824 | 21,824 | 21,824 | 21,824 | |||||||||||||||
Accrued interest receivable and other assets | 81,221 | 92,212 | 90,791 | 88,170 | 101,436 | |||||||||||||||
Total assets | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | $ | 2,707,834 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing demand deposits | $ | 616,126 | $ | 619,192 | $ | 656,330 | $ | 653,166 | $ | 683,348 | ||||||||||
Interest-bearing demand deposits | 349,383 | 328,370 | 315,154 | 291,138 | 310,885 | |||||||||||||||
Money market accounts | 630,870 | 613,131 | 631,350 | 623,714 | 626,256 | |||||||||||||||
Savings deposits | 242,911 | 248,528 | 248,578 | 249,144 | 261,822 | |||||||||||||||
Time deposits | 611,831 | 606,700 | 629,360 | 612,265 | 591,188 | |||||||||||||||
Total deposits | 2,451,121 | 2,415,921 | 2,480,772 | 2,429,427 | 2,473,499 | |||||||||||||||
Advances and other debt | 53,757 | 83,835 | 52,979 | 34,970 | 3,120 | |||||||||||||||
Operating lease liabilities | 5,820 | 6,009 | 6,197 | 5,827 | 6,028 | |||||||||||||||
Accrued interest payable and other liabilities | 42,863 | 48,826 | 47,814 | 45,064 | 55,123 | |||||||||||||||
Total liabilities | 2,553,561 | 2,554,591 | 2,587,762 | 2,515,288 | 2,537,770 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 53 | 53 | 53 | 53 | 53 | |||||||||||||||
Additional paid-in capital | 48,457 | 48,102 | 47,794 | 47,773 | 47,974 | |||||||||||||||
Retained earnings | 243,266 | 239,021 | 235,506 | 229,930 | 227,596 | |||||||||||||||
Treasury stock, at cost | (15,987 | ) | (16,043 | ) | (16,147 | ) | (16,502 | ) | (16,880 | ) | ||||||||||
Accumulated other comprehensive loss | (55,135 | ) | (69,911 | ) | (70,078 | ) | (66,013 | ) | (88,679 | ) | ||||||||||
Total shareholders' equity | 220,654 | 201,222 | 197,128 | 195,241 | 170,064 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | $ | 2,707,834 | ||||||||||
Period-end shares outstanding | 4,774 | 4,772 | 4,768 | 4,754 | 4,738 |
Chemung Financial Corporation | ||||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||
(in thousands, except per share data) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||
Loans, including fees | $ | 28,611 | $ | 25,033 | 14.3 | $ | 83,323 | $ | 71,113 | 17.2 | ||||||||||||
Taxable securities | 3,060 | 3,537 | (13.5 | ) | 9,868 | 10,750 | (8.2 | ) | ||||||||||||||
Tax exempt securities | 250 | 258 | (3.1 | ) | 762 | 778 | (2.1 | ) | ||||||||||||||
Interest-earning deposits | 441 | 187 | 135.8 | 1,014 | 400 | 153.5 | ||||||||||||||||
Total interest and dividend income | 32,362 | 29,015 | 11.5 | 94,967 | 83,041 | 14.4 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 13,005 | 10,721 | 21.3 | 37,861 | 24,577 | 54.1 | ||||||||||||||||
Borrowed funds | 969 | 277 | 249.8 | 2,868 | 1,905 | 50.6 | ||||||||||||||||
Total interest expense | 13,974 | 10,998 | 27.1 | 40,729 | 26,482 | 53.8 | ||||||||||||||||
Net interest income | 18,388 | 18,017 | 2.1 | 54,238 | 56,559 | (4.1 | ) | |||||||||||||||
Provision (credit) for credit losses | 564 | 449 | 25.6 | (597 | ) | 962 | (162.1 | ) | ||||||||||||||
Net interest income after provision for credit losses | 17,824 | 17,568 | 1.5 | 54,835 | 55,597 | (1.4 | ) | |||||||||||||||
Non-interest income: | ||||||||||||||||||||||
Wealth management group fee income | 2,991 | 2,533 | 18.1 | 8,554 | 7,716 | 10.9 | ||||||||||||||||
Service charges on deposit accounts | 1,016 | 1,018 | (0.2 | ) | 2,929 | 2,918 | 0.4 | |||||||||||||||
Interchange revenue from debit card transactions | 1,123 | 1,141 | (1.6 | ) | 3,327 | 3,468 | (4.1 | ) | ||||||||||||||
Change in fair value of equity investments | 118 | (68 | ) | 273.5 | 233 | (99 | ) | 335.4 | ||||||||||||||
Net gains on sales of loans held for sale | 91 | 67 | 35.8 | 162 | 90 | 80.0 | ||||||||||||||||
Net gains (losses) on sales of other real estate owned | (19 | ) | — | N/M | (22 | ) | 14 | N/M | ||||||||||||||
Income from bank owned life insurance | 10 | 11 | (9.1 | ) | 29 | 32 | (9.4 | ) | ||||||||||||||
Other | 589 | 3,106 | (81.0 | ) | 1,962 | 4,539 | (56.8 | ) | ||||||||||||||
Total non-interest income | 5,919 | 7,808 | (24.2 | ) | 17,174 | 18,678 | (8.1 | ) | ||||||||||||||
Non-interest expense: | ||||||||||||||||||||||
Salaries and wages | 7,168 | 6,542 | 9.6 | 21,007 | 20,029 | 4.9 | ||||||||||||||||
Pension and other employee benefits | 1,627 | 1,979 | (17.8 | ) | 5,787 | 5,467 | 5.9 | |||||||||||||||
Other components of net periodic pension and postretirement benefits | (227 | ) | (174 | ) | (30.5 | ) | (691 | ) | (522 | ) | (32.4 | ) | ||||||||||
Net occupancy | 1,422 | 1,337 | 6.4 | 4,360 | 4,242 | 2.8 | ||||||||||||||||
Furniture and equipment | 402 | 353 | 13.9 | 1,197 | 1,232 | (2.8 | ) | |||||||||||||||
Data processing | 2,567 | 2,480 | 3.5 | 7,437 | 7,334 | 1.4 | ||||||||||||||||
Professional services | 522 | 554 | (5.8 | ) | 1,639 | 1,596 | 2.7 | |||||||||||||||
Marketing and advertising | 210 | 218 | (3.7 | ) | 943 | 720 | 31.0 | |||||||||||||||
Other real estate owned expense | 55 | 10 | N/M | 116 | 49 | 136.7 | ||||||||||||||||
FDIC insurance | 524 | 525 | (0.2 | ) | 1,617 | 1,608 | 0.6 | |||||||||||||||
Loan expense | 353 | 249 | 41.8 | 808 | 789 | 2.4 | ||||||||||||||||
Other | 1,887 | 1,595 | 18.3 | 5,207 | 4,873 | 6.9 | ||||||||||||||||
Total non-interest expense | 16,510 | 15,668 | 5.4 | 49,427 | 47,417 | 4.2 | ||||||||||||||||
Income before income tax expense | 7,233 | 9,708 | (25.5 | ) | 22,582 | 26,858 | (15.9 | ) | ||||||||||||||
Income tax expense | 1,513 | 2,060 | (26.6 | ) | 4,825 | 5,660 | (14.8 | ) | ||||||||||||||
Net income | $ | 5,720 | $ | 7,648 | (25.2 | ) | $ | 17,757 | $ | 21,198 | (16.2 | ) | ||||||||||
Basic and diluted earnings per share | $ | 1.19 | $ | 1.61 | $ | 3.72 | $ | 4.48 | ||||||||||||||
Cash dividends declared per share | $ | 0.31 | $ | 0.31 | $ | 0.93 | $ | 0.93 | ||||||||||||||
Average basic and diluted shares outstanding | 4,773 | 4,736 | 4,769 | 4,729 | ||||||||||||||||||
N/M - Not Meaningful |
Chemung Financial Corporation | As of or for the Three Months Ended | As of or for the Nine Months Ended | ||||||||||||||||||||||||||
Consolidated Financial Highlights (Unaudited) | Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||||||||||||
(in thousands, except per share data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
Interest income | $ | 32,362 | $ | 31,386 | $ | 31,219 | $ | 30,033 | $ | 29,015 | $ | 94,967 | $ | 83,041 | ||||||||||||||
Interest expense | 13,974 | 13,625 | 13,130 | 12,135 | 10,998 | 40,729 | 26,482 | |||||||||||||||||||||
Net interest income | 18,388 | 17,761 | 18,089 | 17,898 | 18,017 | 54,238 | 56,559 | |||||||||||||||||||||
Provision (credit) for credit losses | 564 | 879 | (2,040 | ) | 2,300 | 449 | (597 | ) | 962 | |||||||||||||||||||
Net interest income after provision for credit losses | 17,824 | 16,882 | 20,129 | 15,598 | 17,568 | 54,835 | 55,597 | |||||||||||||||||||||
Non-interest income | 5,919 | 5,598 | 5,657 | 5,871 | 7,808 | 17,174 | 18,678 | |||||||||||||||||||||
Non-interest expense | 16,510 | 16,219 | 16,698 | 16,826 | 15,668 | 49,427 | 47,417 | |||||||||||||||||||||
Income before income tax expense | 7,233 | 6,261 | 9,088 | 4,643 | 9,708 | 22,582 | 26,858 | |||||||||||||||||||||
Income tax expense | 1,513 | 1,274 | 2,038 | 841 | 2,060 | 4,825 | 5,660 | |||||||||||||||||||||
Net income | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,802 | $ | 7,648 | $ | 17,757 | $ | 21,198 | ||||||||||||||
Basic and diluted earnings per share | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.80 | $ | 1.61 | $ | 3.72 | $ | 4.48 | ||||||||||||||
Average basic and diluted shares outstanding | 4,773 | 4,770 | 4,764 | 4,743 | 4,736 | 4,769 | 4,729 | |||||||||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||||||||||
Return on average assets | 0.83 | % | 0.73 | % | 1.04 | % | 0.56 | % | 1.14 | % | 0.87 | % | 1.07 | % | ||||||||||||||
Return on average equity | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 16.89 | % | 11.82 | % | 15.93 | % | ||||||||||||||
Return on average tangible equity (a) | 12.07 | % | 11.56 | % | 16.29 | % | 9.86 | % | 19.22 | % | 13.27 | % | 18.15 | % | ||||||||||||||
Efficiency ratio (unadjusted) (e) | 67.92 | % | 69.43 | % | 70.32 | % | 70.79 | % | 60.67 | % | 69.21 | % | 63.02 | % | ||||||||||||||
Efficiency ratio (adjusted) (a) | 67.69 | % | 69.19 | % | 70.07 | % | 70.42 | % | 66.55 | % | 68.97 | % | 64.83 | % | ||||||||||||||
Non-interest expense to average assets | 2.39 | % | 2.38 | % | 2.47 | % | 2.48 | % | 2.33 | % | 2.41 | % | 2.39 | % | ||||||||||||||
Loans to deposits | 82.78 | % | 83.26 | % | 80.77 | % | 81.20 | % | 78.05 | % | 82.78 | % | 78.05 | % | ||||||||||||||
YIELDS / RATES - Fully Taxable Equivalent | ||||||||||||||||||||||||||||
Yield on loans | 5.65 | % | 5.52 | % | 5.51 | % | 5.31 | % | 5.21 | % | 5.56 | % | 5.07 | % | ||||||||||||||
Yield on investments | 2.21 | % | 2.27 | % | 2.35 | % | 2.24 | % | 2.22 | % | 2.28 | % | 2.21 | % | ||||||||||||||
Yield on interest-earning assets | 4.78 | % | 4.69 | % | 4.70 | % | 4.50 | % | 4.40 | % | 4.72 | % | 4.27 | % | ||||||||||||||
Cost of interest-bearing deposits | 2.88 | % | 2.86 | % | 2.75 | % | 2.59 | % | 2.44 | % | 2.83 | % | 1.94 | % | ||||||||||||||
Cost of borrowings | 5.08 | % | 5.04 | % | 5.15 | % | 5.52 | % | 5.25 | % | 5.09 | % | 5.04 | % | ||||||||||||||
Cost of interest-bearing liabilities | 2.97 | % | 2.94 | % | 2.85 | % | 2.68 | % | 2.47 | % | 2.92 | % | 2.03 | % | ||||||||||||||
Interest rate spread | 1.81 | % | 1.75 | % | 1.85 | % | 1.82 | % | 1.93 | % | 1.80 | % | 2.24 | % | ||||||||||||||
Net interest margin, fully taxable equivalent | 2.72 | % | 2.66 | % | 2.73 | % | 2.69 | % | 2.73 | % | 2.70 | % | 2.91 | % | ||||||||||||||
CAPITAL | ||||||||||||||||||||||||||||
Total equity to total assets at end of period | 7.95 | % | 7.30 | % | 7.08 | % | 7.20 | % | 6.28 | % | 7.95 | % | 6.28 | % | ||||||||||||||
Tangible equity to tangible assets at end of period (a) | 7.22 | % | 6.56 | % | 6.34 | % | 6.45 | % | 5.52 | % | 7.22 | % | 5.52 | % | ||||||||||||||
Book value per share | $ | 46.22 | $ | 42.17 | $ | 41.34 | $ | 41.07 | $ | 35.90 | $ | 46.22 | $ | 35.90 | ||||||||||||||
Tangible book value per share (a) | 41.65 | 37.59 | 36.77 | 36.48 | 31.29 | 41.65 | 31.29 | |||||||||||||||||||||
Period-end market value per share | 48.02 | 48.00 | 42.48 | 49.80 | 39.61 | 48.02 | 39.61 | |||||||||||||||||||||
Dividends declared per share | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.93 | 0.93 | |||||||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||||||||
Loans and loans held for sale (b) | $ | 2,020,280 | $ | 2,009,823 | $ | 1,989,185 | $ | 1,956,022 | $ | 1,909,100 | $ | 2,006,479 | $ | 1,879,765 | ||||||||||||||
Interest-earning assets | 2,699,968 | 2,699,402 | 2,681,059 | 2,654,638 | 2,627,012 | 2,693,499 | 2,609,999 | |||||||||||||||||||||
Total assets | 2,751,392 | 2,740,967 | 2,724,391 | 2,688,536 | 2,664,570 | 2,738,962 | 2,650,908 | |||||||||||||||||||||
Deposits | 2,410,735 | 2,419,169 | 2,402,215 | 2,397,663 | 2,410,931 | 2,410,706 | 2,371,021 | |||||||||||||||||||||
Total equity | 210,421 | 195,375 | 195,860 | 174,868 | 179,700 | 200,588 | 177,969 | |||||||||||||||||||||
Tangible equity (a) | 188,597 | 173,551 | 174,036 | 153,044 | 157,876 | 178,764 | 156,145 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||||
Net charge-offs | $ | 79 | $ | 306 | $ | 182 | $ | 171 | $ | 356 | $ | 566 | $ | 771 | ||||||||||||||
Non-performing loans (c) | 10,545 | 8,195 | 7,835 | 10,411 | 6,826 | 10,545 | 6,826 | |||||||||||||||||||||
Non-performing assets (d) | 11,134 | 8,872 | 8,394 | 10,737 | 7,055 | 11,134 | 7,055 | |||||||||||||||||||||
Allowance for credit losses | 21,441 | 21,031 | 20,471 | 22,517 | 20,252 | 21,441 | 20,252 | |||||||||||||||||||||
Annualized net charge-offs to average loans | 0.02 | % | 0.06 | % | 0.04 | % | 0.03 | % | 0.07 | % | 0.04 | % | 0.05 | % | ||||||||||||||
Non-performing loans to total loans | 0.52 | % | 0.41 | % | 0.39 | % | 0.53 | % | 0.35 | % | 0.52 | % | 0.35 | % | ||||||||||||||
Non-performing assets to total assets | 0.40 | % | 0.32 | % | 0.30 | % | 0.40 | % | 0.26 | % | 0.40 | % | 0.26 | % | ||||||||||||||
Allowance for credit losses to total loans | 1.06 | % | 1.05 | % | 1.02 | % | 1.14 | % | 1.05 | % | 1.06 | % | 1.05 | % | ||||||||||||||
Allowance for credit losses to non-performing loans | 203.33 | % | 256.63 | % | 261.28 | % | 216.28 | % | 296.69 | % | 203.33 | % | 296.69 | % | ||||||||||||||
(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 September 30, 2024 | Three Months Ended September 30, 2023 | Three Months Ended September 30, 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 | $ | 1,453,418 | $ | 21,854 | 5.98 | % | $ | 1,319,110 | $ | 18,672 | 5.62 | % | $ | 3,182 | $ | 1,953 | $ | 1,229 | |||||||||||||||
Mortgage loans | 273,374 | 2,713 | 3.97 | % | 282,578 | 2,572 | 3.61 | % | 141 | (92 | ) | 233 | |||||||||||||||||||||
Consumer loans | 293,488 | 4,102 | 5.56 | % | 307,412 | 3,843 | 4.96 | % | 259 | (183 | ) | 442 | |||||||||||||||||||||
Taxable securities | 605,631 | 3,063 | 2.01 | % | 663,240 | 3,540 | 2.12 | % | (477 | ) | (299 | ) | (178 | ) | |||||||||||||||||||
Tax-exempt securities | 38,537 | 272 | 2.81 | % | 40,380 | 288 | 2.83 | % | (16 | ) | (14 | ) | (2 | ) | |||||||||||||||||||
Interest-earning deposits | 35,520 | 441 | 4.94 | % | 14,292 | 187 | 5.19 | % | 254 | 263 | (9 | ) | |||||||||||||||||||||
Total interest-earning assets | 2,699,968 | 32,445 | 4.78 | % | 2,627,012 | 29,102 | 4.40 | % | 3,343 | 1,628 | 1,715 | ||||||||||||||||||||||
Non interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and due from banks | 25,086 | 26,272 | |||||||||||||||||||||||||||||||
Other assets | 47,571 | 31,496 | |||||||||||||||||||||||||||||||
Allowance for credit losses (3) | (21,233 | ) | (20,210 | ) | |||||||||||||||||||||||||||||
Total assets | $ | 2,751,392 | $ | 2,664,570 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 311,406 | $ | 1,445 | 1.85 | % | $ | 281,106 | $ | 963 | 1.36 | % | $ | 482 | $ | 111 | $ | 371 | |||||||||||||||
Savings and money market | 864,541 | 4,607 | 2.12 | % | 890,109 | 3,945 | 1.76 | % | 662 | (117 | ) | 779 | |||||||||||||||||||||
Time deposits | 554,605 | 6,056 | 4.34 | % | 383,786 | 3,269 | 3.38 | % | 2,787 | 1,701 | 1,086 | ||||||||||||||||||||||
Brokered deposits | 65,913 | 897 | 5.41 | % | 189,628 | 2,543 | 5.32 | % | (1,646 | ) | (1,688 | ) | 42 | ||||||||||||||||||||
FHLBNY overnight advances | 541 | 7 | 5.06 | % | 17,879 | 249 | 5.53 | % | (242 | ) | (223 | ) | (19 | ) | |||||||||||||||||||
FRB advances and other debt | 75,305 | 962 | 5.08 | % | 3,144 | 29 | 3.66 | % | 933 | 918 | 15 | ||||||||||||||||||||||
Total interest-bearing liabilities | 1,872,311 | 13,974 | 2.97 | % | 1,765,652 | 10,998 | 2.47 | % | 2,976 | 702 | 2,274 | ||||||||||||||||||||||
Non interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand deposits | 614,270 | 666,302 | |||||||||||||||||||||||||||||||
Other liabilities | 54,390 | 52,916 | |||||||||||||||||||||||||||||||
Total liabilities | 2,540,971 | 2,484,870 | |||||||||||||||||||||||||||||||
Shareholders' equity | 210,421 | 179,700 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,751,392 | $ | 2,664,570 | |||||||||||||||||||||||||||||
Fully taxable equivalent net interest income | 18,471 | 18,104 | $ | 367 | $ | 926 | $ | (559 | ) | ||||||||||||||||||||||||
Net interest rate spread (1) | 1.81 | % | 1.93 | % | |||||||||||||||||||||||||||||
Net interest margin, fully taxable equivalent (2) | 2.72 | % | 2.73 | % | |||||||||||||||||||||||||||||
Taxable equivalent adjustment | (83 | ) | (87 | ) | |||||||||||||||||||||||||||||
Net interest income | $ | 18,388 | $ | 18,017 | |||||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||
(3) The Corporation implemented CECL as of January 1, 2023. | |||||||||||||||||||||||||||||||||
Chemung Financial Corporation | |||||||||||||||||||||||||||||||||
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 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 | $ | 1,433,224 | $ | 63,501 | 5.92 | % | $ | 1,289,638 | $ | 53,047 | 5.50 | % | $ | 10,454 | $ | 6,201 | $ | 4,253 | |||||||||||||||
Mortgage loans | 274,834 | 7,879 | 3.82 | % | 284,351 | 7,553 | 3.55 | % | 326 | (253 | ) | 579 | |||||||||||||||||||||
Consumer loans | 298,421 | 12,114 | 5.42 | % | 305,776 | 10,673 | 4.67 | % | 1,441 | (261 | ) | 1,702 | |||||||||||||||||||||
Taxable securities | 619,657 | 9,877 | 2.13 | % | 679,330 | 10,758 | 2.12 | % | (881 | ) | (933 | ) | 52 | ||||||||||||||||||||
Tax-exempt securities | 39,453 | 830 | 2.81 | % | 40,562 | 887 | 2.92 | % | (57 | ) | (24 | ) | (33 | ) | |||||||||||||||||||
Interest-earning deposits | 27,910 | 1,014 | 4.85 | % | 10,342 | 400 | 5.17 | % | 614 | 641 | (27 | ) | |||||||||||||||||||||
Total interest-earning assets | 2,693,499 | 95,215 | 4.72 | % | 2,609,999 | 83,318 | 4.27 | % | 11,897 | 5,371 | 6,526 | ||||||||||||||||||||||
Non interest-earning assets: | |||||||||||||||||||||||||||||||||
Cash and due from banks | 25,131 | 25,512 | |||||||||||||||||||||||||||||||
Other assets | 41,807 | 35,547 | |||||||||||||||||||||||||||||||
Allowance for credit losses (3) | (21,475 | ) | (20,150 | ) | |||||||||||||||||||||||||||||
Total assets | $ | 2,738,962 | $ | 2,650,908 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 308,318 | $ | 4,170 | 1.81 | % | $ | 286,220 | $ | 1,959 | 0.92 | % | $ | 2,211 | $ | 164 | $ | 2,047 | |||||||||||||||
Savings and money market | 861,382 | 13,190 | 2.05 | % | 899,871 | 8,645 | 1.28 | % | 4,545 | (389 | ) | 4,934 | |||||||||||||||||||||
Time deposits | 521,997 | 16,603 | 4.25 | % | 350,846 | 8,041 | 3.06 | % | 8,562 | 4,764 | 3,798 | ||||||||||||||||||||||
Brokered deposits | 96,056 | 3,898 | 5.42 | % | 153,774 | 5,932 | 5.16 | % | (2,034 | ) | (2,322 | ) | 288 | ||||||||||||||||||||
FHLBNY overnight advances | 15,359 | 646 | 5.53 | % | 47,321 | 1,819 | 5.14 | % | (1,173 | ) | (1,304 | ) | 131 | ||||||||||||||||||||
FRB advances and other debt | 59,584 | 2,222 | 4.98 | % | 3,212 | 86 | 3.58 | % | 2,136 | 2,089 | 47 | ||||||||||||||||||||||
Total interest-bearing liabilities | 1,862,696 | 40,729 | 2.92 | % | 1,741,244 | 26,482 | 2.03 | % | 14,247 | 3,002 | 11,245 | ||||||||||||||||||||||
Non interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand deposits | 622,953 | 680,310 | |||||||||||||||||||||||||||||||
Other liabilities | 52,725 | 51,385 | |||||||||||||||||||||||||||||||
Total liabilities | 2,538,374 | 2,472,939 | |||||||||||||||||||||||||||||||
Shareholders' equity | 200,588 | 177,969 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,738,962 | $ | 2,650,908 | |||||||||||||||||||||||||||||
Fully taxable equivalent net interest income | 54,486 | 56,836 | $ | (2,350 | ) | $ | 2,369 | $ | (4,719 | ) | |||||||||||||||||||||||
Net interest rate spread (1) | 1.80 | % | 2.24 | % | |||||||||||||||||||||||||||||
Net interest margin, fully taxable equivalent (2) | 2.70 | % | 2.91 | % | |||||||||||||||||||||||||||||
Taxable equivalent adjustment | (248 | ) | (277 | ) | |||||||||||||||||||||||||||||
Net interest income | $ | 54,238 | $ | 56,559 | |||||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||||||
(3) The Corporation implemented CECL as of January 1, 2023. | |||||||||||||||||||||||||||||||||
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 | Nine Months Ended | |||||||||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||
(in thousands, except ratio data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT | ||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 18,388 | $ | 17,761 | $ | 18,089 | $ | 17,898 | $ | 18,017 | $ | 54,238 | $ | 56,559 | ||||||||||||||
Fully taxable equivalent adjustment | 83 | 81 | 84 | 87 | 87 | 248 | 277 | |||||||||||||||||||||
Fully taxable equivalent net interest income (non-GAAP) | $ | 18,471 | $ | 17,842 | $ | 18,173 | $ | 17,985 | $ | 18,104 | $ | 54,486 | $ | 56,836 | ||||||||||||||
Average interest-earning assets (GAAP) | $ | 2,699,968 | $ | 2,699,402 | $ | 2,681,059 | $ | 2,654,638 | $ | 2,627,012 | $ | 2,693,499 | $ | 2,609,999 | ||||||||||||||
Net interest margin - fully taxable equivalent (non-GAAP) | 2.72 | % | 2.66 | % | 2.73 | % | 2.69 | % | 2.73 | % | 2.70 | % | 2.91 | % | ||||||||||||||
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.
As of or for the | ||||||||||||||||||||||||||||
As of or for the Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||
(in thousands, except ratio data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
EFFICIENCY RATIO | ||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 18,388 | $ | 17,761 | $ | 18,089 | $ | 17,898 | $ | 18,017 | $ | 54,238 | $ | 56,559 | ||||||||||||||
Fully taxable equivalent adjustment | 83 | 81 | 84 | 87 | 87 | 248 | 277 | |||||||||||||||||||||
Fully taxable equivalent net interest income (non-GAAP) | $ | 18,471 | $ | 17,842 | $ | 18,173 | $ | 17,985 | $ | 18,104 | $ | 54,486 | $ | 56,836 | ||||||||||||||
Non-interest income (GAAP) | $ | 5,919 | $ | 5,598 | $ | 5,657 | $ | 5,871 | $ | 7,808 | $ | 17,174 | $ | 18,678 | ||||||||||||||
Less: net (gains) losses on security transactions | — | — | — | 39 | — | — | — | |||||||||||||||||||||
Less: recognition of employee retention tax credit | — | — | — | — | (2,370 | ) | — | (2,370 | ) | |||||||||||||||||||
Adjusted non-interest income (non-GAAP) | $ | 5,919 | $ | 5,598 | $ | 5,657 | $ | 5,910 | $ | 5,438 | $ | 17,174 | $ | 16,308 | ||||||||||||||
Non-interest expense (GAAP) | $ | 16,510 | $ | 16,219 | $ | 16,698 | $ | 16,826 | $ | 15,668 | $ | 49,427 | $ | 47,417 | ||||||||||||||
Efficiency ratio (unadjusted) | 67.92 | % | 69.43 | % | 70.32 | % | 70.79 | % | 60.67 | % | 69.21 | % | 63.02 | % | ||||||||||||||
Efficiency ratio (adjusted) | 67.69 | % | 69.19 | % | 70.07 | % | 70.42 | % | 66.55 | % | 68.97 | % | 64.83 | % | ||||||||||||||
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.
As of or for the | ||||||||||||||||||||||||||||
As of or for the Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||
(in thousands, except per share and ratio data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
TANGIBLE EQUITY AND TANGIBLE ASSETS | ||||||||||||||||||||||||||||
(PERIOD END) | ||||||||||||||||||||||||||||
Total shareholders' equity (GAAP) | $ | 220,654 | $ | 201,222 | $ | 197,128 | $ | 195,241 | $ | 170,064 | $ | 220,654 | $ | 170,064 | ||||||||||||||
Less: intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
Tangible equity (non-GAAP) | $ | 198,830 | $ | 179,398 | $ | 175,304 | $ | 173,417 | $ | 148,240 | $ | 198,830 | $ | 148,240 | ||||||||||||||
Total assets (GAAP) | $ | 2,774,215 | $ | 2,755,813 | $ | 2,784,890 | $ | 2,710,529 | $ | 2,707,834 | $ | 2,774,215 | $ | 2,707,834 | ||||||||||||||
Less: intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
Tangible assets (non-GAAP) | $ | 2,752,391 | $ | 2,733,989 | $ | 2,763,066 | $ | 2,688,705 | $ | 2,686,010 | $ | 2,752,391 | $ | 2,686,010 | ||||||||||||||
Total equity to total assets at end of period (GAAP) | 7.95 | % | 7.30 | % | 7.08 | % | 7.20 | % | 6.28 | % | 7.95 | % | 6.28 | % | ||||||||||||||
Book value per share (GAAP) | $ | 46.22 | $ | 42.17 | $ | 41.34 | $ | 41.07 | $ | 35.90 | $ | 46.22 | $ | 35.90 | ||||||||||||||
Tangible equity to tangible assets at end of period (non-GAAP) | 7.22 | % | 6.56 | % | 6.34 | % | 6.45 | % | 5.52 | % | 7.22 | % | 5.52 | % | ||||||||||||||
Tangible book value per share (non-GAAP) | $ | 41.65 | $ | 37.59 | $ | 36.77 | $ | 36.48 | $ | 31.29 | $ | 41.65 | $ | 31.29 | ||||||||||||||
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.
As of or for the | ||||||||||||||||||||||||||||
As of or for the Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||
(in thousands, except ratio data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
TANGIBLE EQUITY (AVERAGE) | ||||||||||||||||||||||||||||
Total average shareholders' equity (GAAP) | $ | 210,421 | $ | 195,375 | $ | 195,860 | $ | 174,868 | $ | 179,700 | $ | 200,588 | $ | 177,969 | ||||||||||||||
Less: average intangible assets | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | (21,824 | ) | ||||||||||||||
Average tangible equity (non-GAAP) | $ | 188,597 | $ | 173,551 | $ | 174,036 | $ | 153,044 | $ | 157,876 | $ | 178,764 | $ | 156,145 | ||||||||||||||
Return on average equity (GAAP) | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 16.89 | % | 11.82 | % | 15.93 | % | ||||||||||||||
Return on average tangible equity (non-GAAP) | 12.07 | % | 11.56 | % | 16.29 | % | 9.86 | % | 19.22 | % | 13.27 | % | 18.15 | % | ||||||||||||||
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.
As of or for the | ||||||||||||||||||||||||||||
As of or for the Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||||||
(in thousands, except per share and ratio data) | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
NON-GAAP NET INCOME | ||||||||||||||||||||||||||||
Reported net income (GAAP) | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,802 | $ | 7,648 | $ | 17,757 | $ | 21,198 | ||||||||||||||
Net (gains) losses on security transactions (net of tax) | — | — | — | 29 | — | — | — | |||||||||||||||||||||
Recognition of employee retention tax credit (net of tax) | — | — | — | — | (1,873 | ) | — | (1,873 | ) | |||||||||||||||||||
Net income (non-GAAP) | $ | 5,720 | $ | 4,987 | $ | 7,050 | $ | 3,831 | $ | 5,775 | $ | 17,757 | $ | 19,325 | ||||||||||||||
Average basic and diluted shares outstanding | 4,773 | 4,770 | 4,764 | 4,743 | 4,736 | 4,769 | 4,729 | |||||||||||||||||||||
Reported basic and diluted earnings per share (GAAP) | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.80 | $ | 1.61 | $ | 3.72 | $ | 4.48 | ||||||||||||||
Reported return on average assets (GAAP) | 0.83 | % | 0.73 | % | 1.04 | % | 0.56 | % | 1.14 | % | 0.87 | % | 1.07 | % | ||||||||||||||
Reported return on average equity (GAAP) | 10.81 | % | 10.27 | % | 14.48 | % | 8.63 | % | 16.89 | % | 11.82 | % | 15.93 | % | ||||||||||||||
Basic and diluted earnings per share (non-GAAP) | $ | 1.19 | $ | 1.05 | $ | 1.48 | $ | 0.81 | $ | 1.21 | $ | 3.72 | $ | 4.08 | ||||||||||||||
Return on average assets (non-GAAP) | 0.83 | % | 0.73 | % | 1.04 | % | 0.57 | % | 0.86 | % | 0.87 | % | 0.97 | % | ||||||||||||||
Return on average equity (non-GAAP) | 10.81 | % | 10.27 | % | 14.48 | % | 8.69 | % | 12.75 | % | 11.82 | % | 14.52 | % | ||||||||||||||
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
What was Chemung Financial 's (CHMG) net income for Q3 2024?
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