Core Viewpoint - Chemung Financial (CHMG) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of surpassing expectations [1]. Group 1: Earnings Performance - Chemung Financial has consistently exceeded earnings estimates, averaging a 4.01% beat over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $1.24 per share against an expectation of $1.23, resulting in a surprise of 0.81%. In the previous quarter, it reported $1.19 per share compared to an estimate of $1.11, achieving a surprise of 7.21% [3]. Group 2: Earnings Estimates and Predictions - Recent changes in earnings estimates for Chemung Financial have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [6]. - The current Earnings ESP for Chemung Financial is +2.46%, suggesting that analysts are optimistic about the company's earnings prospects [9]. Group 3: Zacks Rank and Predictive Power - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of a positive earnings surprise, with historical data indicating that nearly 70% of stocks with this combination beat consensus estimates [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may provide a more accurate prediction [8].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Chemung Financial despite higher revenues, with actual results being crucial for stock price movement [1][2]. Company Summary - Chemung Financial is expected to report quarterly earnings of $1.22 per share, reflecting a year-over-year decrease of 17.6% [3]. - Revenue is projected to be $26.24 million, which is an increase of 10.5% compared to the same quarter last year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Chemung Financial is +2.46%, suggesting analysts have recently become more optimistic about the company's earnings prospects [10]. - The stock currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. - Historically, Chemung Financial has surpassed consensus EPS estimates three out of the last four quarters, with a recent surprise of +0.81% [12][13]. Industry Context - In the Southeast banking industry, Synovus Financial is expected to report earnings of $1.11 per share, showing a year-over-year increase of 40.5% [17]. - Synovus's revenue is anticipated to be $570.2 million, up 6% from the previous year [17]. - Despite a recent downward revision of 0.7% in EPS estimates, Synovus has an Earnings ESP of -2.23%, making it challenging to predict an earnings beat [18].

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].

Core Viewpoint - Chemung Financial (CHMG) is expected to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with a consensus outlook indicating a potential impact on its stock price based on actual results compared to estimates [1][2]. Financial Performance Expectations - The consensus EPS estimate for Chemung Financial is $1.23 per share, reflecting a year-over-year increase of +51.9% [3]. - Expected revenues for the quarter are $25.04 million, which is a 5.3% increase from the same quarter last year [3]. Estimate Revisions and Predictions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Chemung Financial is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.22%, suggesting a bullish outlook from analysts [10]. Historical Performance and Trends - In the last reported quarter, Chemung Financial exceeded the expected earnings of $1.11 per share by delivering $1.19, resulting in a surprise of +7.21% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Comparative Industry Insights - Another company in the Zacks Banks - Southeast industry, Cadence (CADE), is expected to report earnings of $0.68 per share for the same quarter, indicating a year-over-year change of +70% [17]. - Cadence's expected revenues are $457.2 million, showing a significant increase of 1875% from the previous year [17]. - Despite a recent downward revision of 0.4% in Cadence's EPS estimate, it has an Earnings ESP of -4.13%, making it challenging to predict a beat on the consensus EPS estimate [18].