Chemung Financial (CHMG) - 2024 Q4 - Annual Results

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].