Chemung Financial (CHMG) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $6.0 million, or$ 1.26 per share, compared to $5.9 million, or$ 1.24 per share, in the fourth quarter of 2024, and $7.1 million, or$ 1.48 per share, in the first quarter of 2024, reflecting a year-over-year decrease of 15.5%[1] - Non-interest income for Q1 2025 was $5.9 million, a 3.5% increase from$ 5.7 million in Q1 2024, driven by fee income increases in wealth management and service charges[26] - Reported net income (GAAP) for the three months ended March 31, 2025, was $6,023,000, slightly up from$ 5,914,000 in the prior quarter, reflecting a growth of 1.84%[74] - Basic and diluted earnings per share (non-GAAP) remained stable at $1.26 for the quarter ended March 31, 2025, consistent with the previous quarter[74] Income and Expenses - Net interest income for the first quarter of 2025 totaled$ 19.8 million, an increase of $1.7 million, or 9.4%, compared to$ 18.1 million in the first quarter of 2024[18] - Non-interest expense decreased to $16.9 million, down$ 0.9 million, or 5.1%, from $17.8 million in the prior quarter[15] - Total non-interest expense rose to$ 16,927 million, reflecting a 1.4% increase from $16,698 million[56] - The effective tax rate increased to 21.6% from 21.2% in the prior quarter, primarily due to an increase in pretax income[17] Asset and Equity Growth - Total assets rose to$ 2.797 billion as of March 31, 2025, a 0.7% increase from $2.776 billion at the end of 2024[34] - Total shareholders' equity increased to$ 228.3 million as of March 31, 2025, a 6.0% rise from $215.3 million at the end of 2024[41] - Total equity to total assets ratio (GAAP) improved to 8.16% as of March 31, 2025, compared to 7.76% at December 31, 2024[70] Loan and Deposit Information - Annualized loan growth was 5.1% for the three months ended March 31, 2025, with commercial loan growth at 10.5%[10] - The Canal Bank division experienced loan growth of 14.9% and deposit growth of 82.0% compared to the prior year-end[10] - Total deposits increased by$ 36.5 million, or 1.5%, compared to the prior year-end, driven by increases in interest-bearing demand and money market deposits[39] - The net loans, after accounting for deferred loan fees, were $2.08 billion as of March 31, 2025, compared to$ 2.05 billion at the end of 2024, indicating a growth of approximately 1.5%[54] Credit Losses and Non-Performing Loans - Provision for credit losses was $1.1 million, an increase of$ 3.1 million, or 155.0%, compared to a credit of $2.0 million for the same period in the prior year[25] - Non-performing loans increased to$ 9.9 million, or 0.47% of total loans, as of March 31, 2025, up from $9.0 million, or 0.43% as of December 31, 2024[30] - The allowance for credit losses on loans was$ 22.5 million as of March 31, 2025, up from $21.4 million as of December 31, 2024[32] Market and Operational Metrics - Fully taxable equivalent net interest margin was 2.96% for the first quarter of 2025, compared to 2.73% for the same period in the prior year[24] - The efficiency ratio (unadjusted) improved to 65.85% from 68.88%[56] - Return on average assets improved to 0.88% from 0.85%[56] - Average interest-earning assets increased by$ 48.6 million, while average interest-bearing liabilities increased by $34.8 million compared to the same period in the prior year[24]