Company Overview - Chemung Financial (CHMG) is based in Elmira and operates in the Finance sector, with a year-to-date share price change of -1.76% [3] - The company currently pays a dividend of $0.31 per share, resulting in a dividend yield of 2.67%, which is higher than the Banks - Southeast industry's yield of 2.43% and the S&P 500's yield of 1.57% [3] Dividend Performance - The current annualized dividend of Chemung Financial is $1.28, reflecting a 3.2% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend once on a year-over-year basis, with an average annual increase of 4.05% [4] - The current payout ratio is 25%, indicating that the company paid out 25% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $5.38 per share, with an expected increase of 8.47% from the previous year [5] Investment Considerations - Chemung Financial is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Financial Performance - Net income for the year ended December 31, 2024 was $23.7 million, a decrease of 5.3% compared to $25.0 million in 2023[215]. - Net interest income totaled $74.1 million for 2024, a slight decrease of 0.5% from $74.5 million in 2023[217]. - Interest and dividend income increased by 12.8% to $127.6 million in 2024, up from $113.1 million in 2023[216]. - Interest expense rose significantly by 38.6% to $53.5 million in 2024, compared to $38.6 million in 2023[216]. - The return on average equity decreased to 11.53% in 2024 from 14.11% in 2023[215]. - The efficiency ratio (adjusted) increased to 68.89% in 2024 from 66.20% in 2023[214]. - Average total loan balances increased by $117.5 million, with a notable rise in the commercial loan portfolio by $136.8 million[219]. - The average yield on loans increased by 44 basis points, contributing to higher interest income on loans[219]. - Non-performing loans decreased to 0.43% of total loans in 2024 from 0.53% in 2023[215]. - The book value per share increased to $45.13 in 2024 from $41.07 in 2023[214]. Assets and Liabilities - As of December 31, 2024, the Corporation had consolidated assets of $2.776 billion, loans of $2.071 billion, deposits of $2.397 billion, and shareholders' equity of $215.3 million[24]. - The Corporation's portfolio of commercial real estate and commercial and industrial loans totaled $1.517 billion, accounting for 73.2% of total loans as of December 31, 2024[119]. - The Bank had $1.8 billion of deposit liabilities, which accounted for 74.0% of total deposits, that had no maturity and could be withdrawn at any time[134]. - As of December 31, 2024, loan participation balances where the Bank is not the lead bank totaled $168.2 million, or 8.1% of the loan portfolio[121]. - The Corporation's indirect automobile lending portfolio amounted to $178.1 million, representing 8.5% of the total loan portfolio as of December 31, 2024[124]. Regulatory Compliance - The Corporation is subject to comprehensive regulation and must comply with various federal and state laws, including the Bank Holding Company Act and Sarbanes-Oxley[60][70]. - The Bank was in compliance with regulatory capital requirements as of December 31, 2024, exceeding all necessary ratios to be considered well-capitalized[92]. - The minimum capital standards include a common equity Tier 1 capital ratio of 4.5% of risk-weighted assets and a total capital ratio of 8%[87]. - The regulations limit capital distributions if the bank does not hold a capital conservation buffer of 2.5% of common equity Tier 1 capital[90]. - The Bank is subject to the rules and requirements of the Federal Home Loan Bank of New York and was in compliance as of December 31, 2024[100]. - The Corporation met the SEC's requirement to adopt a compliant clawback policy by December 1, 2023, as mandated by the Dodd-Frank Act[69]. Growth Strategy - The Corporation's growth strategy focuses on leveraging its branch and digital network to build client relationships and grow loans and deposits[25]. - The Corporation's growth strategy includes opening additional branches, with a new full-service branch opened in Williamsville, New York in 2024[139]. - The Corporation has completed two whole bank acquisitions in the past two decades, enhancing its geographic footprint and market presence[24]. Competition and Market Position - The Bank faces intense competition in lending and deposit gathering from various financial institutions, including credit unions that may have a competitive pricing advantage due to tax exemptions[52]. - The Bank held 61.22% of total market deposits in Chemung County, amounting to $69.5 million in brokered deposits[49]. - The Bank's Capital Bank division and Canal Bank division hold 1.97% and 0.01% of their respective markets' total deposits of $26.3 billion and $58.0 billion[49]. Employee and Workforce - As of December 31, 2024, the Bank employed 343 full-time equivalent employees, with a workforce composition of 71% female and 29% male[55]. - The Corporation's average employee tenure was 8.0 years, with the Executive Management Team averaging 12.5 years[55]. - The Corporation offers a competitive total rewards package, including a 401(k) match and health insurance, to attract and retain talent[56]. Risk Management - The Corporation's risk management framework may not effectively mitigate risks, especially in light of recent banking sector failures, which could impact its financial condition[152]. - The Corporation faces significant operational risks due to high transaction volumes and reliance on automated processing, which could lead to financial losses if errors occur[153]. - The Corporation's ability to assess creditworthiness may be impaired if current models become less predictive due to adverse economic conditions[116]. - The Corporation is subject to environmental liability risks associated with its real estate-secured loans, which could lead to significant remediation costs[122]. Economic Conditions - The Corporation's financial performance is affected by economic conditions, including interest rates, inflation, and consumer spending[115]. - The Federal Reserve increased the federal funds rate by 525 basis points during 2022 and 2023, peaking at 5.50% by the end of 2023[136]. - Recent policy initiatives from the new Administration, including tariffs and stricter immigration policies, may create inflationary pressures, potentially leading the FRB to maintain elevated federal funds rates[144]. Cybersecurity - Cybersecurity threats are evolving, and while the Corporation has implemented safeguards, the increasing sophistication of threats could materially affect its operations[177]. - The Chief Information Security Officer (CISO) reports quarterly to the Enterprise Risk Committee regarding cybersecurity risks and incidents[178]. Shareholder Information - The Corporation's common stock is traded on NASDAQ under the symbol "CHMG," but it is not heavily traded, leading to potential volatility in stock prices[170]. - The Corporation's ability to pay dividends to shareholders is dependent on dividends from the Bank, which are subject to regulatory limitations[171]. - As of March 1, 2025, a total of 49,184 shares were repurchased at an average cost of $40.42 per share[191]. - The Corporation has 423 registered holders of record of its stock as of March 1, 2025[191]. - The Corporation's cumulative total shareholder return was 133.17 as of December 31, 2024, compared to 100.00 at the start of the five-year period[195].

Core Points - Chemung Financial Corporation announced a dividend increase of $0.01 per share, resulting in a quarterly cash dividend of $0.32 per share, reflecting a 3.2% increase [1][2] - The dividend is payable on April 1, 2025, to shareholders of record as of March 18, 2025 [1] - The company attributes the dividend increase to its strong financial performance [2] Company Overview - Chemung Financial Corporation is a financial services holding company with a total asset value of $2.8 billion, headquartered in Elmira, New York [3] - The company operates 30 offices through its principal subsidiary, Chemung Canal Trust Company, which is the oldest locally-owned community bank in New York State, established in 1833 [3] - Chemung Financial Corporation also includes CFS Group, Inc., which offers non-traditional financial services such as mutual funds, annuities, brokerage services, tax preparation, and insurance [3]

Core Insights - Chemung Financial reported revenue of $25.88 million for the quarter ended December 2024, reflecting an 8.9% increase year-over-year [1] - The company's EPS was $1.24, up from $0.81 in the same quarter last year, exceeding the consensus estimate of $1.23 [1] - The revenue surpassed the Zacks Consensus Estimate of $25.04 million, resulting in a surprise of +3.34% [1] Financial Performance Metrics - Net Interest Margin was reported at 2.9%, above the average estimate of 2.8% from two analysts [4] - Efficiency Ratio stood at 68.9%, compared to the average estimate of 67.2% from two analysts [4] - Net Interest Income reached $19.82 million, exceeding the average estimate of $19.14 million from two analysts [4] - Total non-interest income was $6.06 million, surpassing the estimated $5.90 million from two analysts [4] - Net gain on sales of loans held for sale was $0.05 million, below the average estimate of $0.10 million from two analysts [4] Stock Performance - Chemung Financial's shares have returned -4.7% over the past month, while the Zacks S&P 500 composite increased by +0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Chemung Financial reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, and up from $0.81 per share a year ago, representing an earnings surprise of 0.81% [1] - The company posted revenues of $25.88 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.34%, compared to $23.77 million in the same quarter last year [2] - Over the last four quarters, Chemung Financial has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed the market, losing about 4.3% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the coming quarter is $1.19 on revenues of $25.22 million, and for the current fiscal year, it is $5.25 on revenues of $105.31 million [7] Group 3 - The Zacks Industry Rank for Banks - Southeast is currently in the top 15% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Chemung Financial Corporation reported annual net income of $23.7 million, or $4.96 per share, for 2024, a decrease from $25.0 million, or $5.28 per share, in 2023[1]. - Fourth quarter net income was $5.9 million, or $1.24 per share, compared to $5.7 million, or $1.19 per share, in the third quarter of 2024[1]. - Non-interest income for 2024 was $23.2 million, a decrease of $1.3 million, or 5.3%, from $24.5 million in 2023[12]. - Non-interest income for Q4 2024 was $6.1 million, an increase of $0.2 million or 3.4% compared to the same period in the prior year[36]. - Net income for the quarter was $5,914 million, reflecting a 55.5% increase compared to $3,802 million in the same quarter last year[68]. - Reported net income (GAAP) for Q4 2024 was $5,914,000, compared to $5,720,000 in Q3 2024, reflecting a 3.4% increase[93]. - The company reported a total net income of $23,671,000 for the twelve months ended December 31, 2024, compared to $25,000,000 in the previous year, reflecting a decrease of 5.3%[93]. Income and Expenses - Net interest income for 2024 totaled $74.1 million, a slight decrease of $0.4 million, or 0.5%, from $74.5 million in 2023[6]. - Non-interest expense for 2024 increased to $67.3 million, up $3.1 million, or 4.8%, from $64.2 million in 2023[14]. - Non-interest expense for Q4 2024 was $17.8 million, an increase of $1.0 million or 5.9% compared to the same period in the prior year[38]. - Total non-interest expense increased by 5.9% to $17,823 million from $16,826 million year-over-year[68]. Taxation - The effective tax rate for 2024 increased to 21.3% from 20.6% in 2023, with income tax expense decreasing slightly to $6.4 million[16]. - The effective tax rate for Q4 2024 was 21.2%, an increase from 18.1% for the same period in the prior year, primarily due to an increase in pretax income[41]. Assets and Liabilities - Total assets increased by $65.6 million or 2.4% to $2.776 billion as of December 31, 2024, driven by an increase in loans and cash equivalents[45]. - Total liabilities increased by $45.6 million or 1.8% to $2.561 billion as of December 31, 2024, primarily due to increases in advances and other debt[49]. - Total shareholders' equity increased by $20.1 million or 10.3% to $215.3 million as of December 31, 2024, driven by an increase in retained earnings[52]. - Total assets as of December 31, 2024, were $2.776 billion, compared to $2.710 billion as of December 31, 2023[65]. - Total liabilities were $2.560 billion as of December 31, 2024, reflecting an increase from $2.515 billion as of December 31, 2023[65]. - Shareholders' equity stood at $215.3 million as of December 31, 2024, compared to $195.2 million as of December 31, 2023[65]. Loans and Credit - Annual loan growth was 5.0% for 2024, with commercial and industrial growth of 13.3% and commercial real estate growth of 8.4%[9]. - The allowance for credit losses was $21.4 million as of December 31, 2024, a decrease from $22.5 million as of December 31, 2023, reflecting a recalibration of loss drivers[44]. - Non-performing loans totaled $9.0 million or 0.43% of total loans as of December 31, 2024, a decrease from $10.4 million or 0.53% as of December 31, 2023[42]. - The provision for credit losses for 2024 was a credit of $46 thousand, compared to a provision of $3.3 million in 2023[11]. - The provision for credit losses decreased significantly by 76.0% to $551 million from $2,300 million in the previous year[68]. Shareholder Information - Dividends declared during the fourth quarter of 2024 were $0.31 per share[9]. - The Corporation repurchased 49,184 shares of common stock at a total cost of $2.0 million, with a weighted average cost of $40.42 per share[59]. - Basic and diluted earnings per share increased to $1.24 from $0.80, representing a significant growth[68]. - Book value per share rose to $45.13 compared to $41.07 in the previous year[70]. - Basic and diluted earnings per share (non-GAAP) for Q4 2024 were $1.24, compared to $1.19 in Q3 2024, representing a 4.2% increase[93]. Market and Operational Developments - The Bank opened a new full-service branch in Williamsville, New York, consolidating previous operations from Clarence, New York[60]. - The market value of total assets under management in the Wealth Management Group was $2.212 billion, a decrease of $30.4 million or 1.4% from $2.242 billion as of December 31, 2023[58].

Core Viewpoint - Chemung Financial Corporation reported a net income of $23.7 million for the year ended December 31, 2024, a decrease from $25.0 million in 2023, with a fourth-quarter net income of $5.9 million, reflecting a solid performance despite an uncertain economic environment [1][2][3]. Financial Performance - Net interest income for 2024 was $74.1 million, down 0.5% from $74.5 million in 2023, influenced by a $14.1 million increase in interest expense on deposits and a $1.3 million decrease in interest income on taxable securities [6][9]. - The fully taxable equivalent net interest margin was 2.76% for 2024, compared to 2.85% in 2023, with average interest-earning assets increasing by $76.9 million [9]. - Non-interest income decreased by 5.3% to $23.2 million in 2024, primarily due to a $2.5 million drop in other non-interest income [13][14]. Loan and Asset Quality - Annual loan growth was 5.0% for 2024, with commercial and industrial loans growing by 13.3% and commercial real estate loans by 8.4% [11]. - Non-performing loans decreased to $9.0 million, or 0.43% of total loans, from $10.4 million, or 0.53%, in the previous year [41]. - The allowance for credit losses was $21.4 million as of December 31, 2024, down from $22.5 million a year earlier, reflecting improved economic forecasts [43]. Expenses and Taxation - Non-interest expense for 2024 increased by 4.8% to $67.3 million, driven by higher salaries and benefits [15][16]. - Income tax expense for 2024 was $6.4 million, slightly down from $6.5 million in 2023, with an effective tax rate increase to 21.3% [17]. Balance Sheet and Equity - Total assets rose to $2.776 billion as of December 31, 2024, an increase of 2.4% from the previous year, primarily due to a $98.8 million increase in loans [44]. - Total shareholders' equity increased by 10.3% to $215.3 million, driven by retained earnings from net income [52]. - The total equity to total assets ratio improved to 7.76% from 7.20% year-over-year [53]. Strategic Developments - The Bank opened a new full-service branch under the Canal Bank division in Williamsville, New York, consolidating previous operations to enhance regional presence [60]. - The Corporation's Wealth Management Group reported total assets under management of $2.212 billion, a slight decrease from the previous year, but excluding the Corporation's assets, there was a 2.6% increase [58].

The market expects Chemung Financial (CHMG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, ...

Core Viewpoint - The article highlights Chemung Financial Corp (CHMG) as a strong value stock, supported by various valuation metrics indicating it is currently undervalued compared to its industry peers [4][8]. Valuation Metrics - CHMG has a P/E ratio of 9.93, significantly lower than the industry average of 13.15, with a 52-week range of 7.89 to 10.14 [4]. - The P/B ratio for CHMG stands at 1.13, compared to the industry average of 2.09, with a 52-week range of 0.95 to 1.39 [5]. - The P/S ratio for CHMG is 1.67, while the industry average is 2.25, indicating a favorable valuation [6]. - CHMG's P/CF ratio is 9.62, which is attractive compared to the industry average of 19.78, with a 52-week range of 6.42 to 9.64 [7]. Investment Outlook - The combination of CHMG's strong earnings outlook and favorable valuation metrics positions it as one of the market's strongest value stocks [8].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...