Chemung Financial (US:CHMG)2025-10-21 20:10Financial Performance - Chemung Financial Corporation reported net income of $7.8 million, or $1.62 per share, for Q3 2025, compared to a net loss of $6.5 million, or $1.35 per share, in Q2 2025[1]. - Non-interest income for Q3 2025 totaled $6.1 million, a significant recovery from a loss of $10.7 million in Q2 2025[16]. - Net income for the quarter was $7,792 million, a 36.2% increase from $5,720 million in the previous year[69]. - Basic and diluted earnings per share rose to $1.62, compared to $1.19 in the same quarter last year[69]. - Reported net income (GAAP) for the three months ended September 30, 2025, was $7,792,000, a significant recovery from a loss of $6,452,000 in the previous quarter[95]. Revenue and Income Sources - Net interest income for Q3 2025 totaled $22.7 million, an increase of $1.9 million, or 9.1%, from $20.8 million in Q2 2025, driven by a $1.6 million increase in interest income on loans[6]. - Non-interest income rose to $6.1 million, a 3.4% increase from $5.9 million, supported by higher service charges and other non-interest income[31]. - Interest income increased to $33,884 million, up from $33,034 million, reflecting a growth of 2.6%[69]. - Interest and dividend income increased by 4.7% to $33,884 thousand for the three months ended September 30, 2025, compared to $32,362 thousand in 2024[68]. Expenses and Costs - Non-interest expense decreased by $0.2 million, or 1.1%, to $17.6 million in Q3 2025, driven by reductions in professional services and marketing expenses[19]. - Non-interest expense totaled $17,645 million, a 6.9% increase from $16,510 million year-over-year[69]. - Total interest expense decreased to $11,196 million from $12,226 million, a decline of 8.4%[69]. Asset and Liability Management - Total assets decreased by $79.5 million, or 2.9%, to $2.697 billion, influenced by balance sheet repositioning efforts[41]. - Total liabilities decreased by $109.5 million, or 4.3%, to $2.451 billion, reflecting the impact of the Corporation's balance sheet strategies[45]. - Total deposits decreased by $38.4 million, or 1.6%, compared to the prior year-end, with brokered deposits down $92.2 million, partially offset by an increase of $53.8 million in total customer deposits[47]. Loan and Credit Quality - Average balances of total loans increased by $63.1 million, with commercial loans rising by $68.5 million, primarily in commercial real estate[7]. - Provision for credit losses remained stable at $1.1 million for Q3 2025, consistent with the prior quarter[15]. - The allowance for credit losses on loans increased to $23.6 million, representing 1.07% of total loans, up from 1.03% at the end of the previous year[39]. - Provision for credit losses increased to $1.1 million, up from $0.6 million, driven by stronger loan growth of $69.9 million compared to $17.5 million in the prior year[30]. Shareholder Equity and Dividends - Total shareholders' equity rose to $245.3 million as of September 30, 2025, an increase of $30.0 million, or 13.9%, driven by a decrease in accumulated other comprehensive loss and an increase in retained earnings[51]. - The Corporation announced a dividend increase of $0.02 per share, representing a 6.3% increase over the prior quarter[8]. - Cash dividends declared per share increased to $0.34 from $0.31, marking a growth of 9.7%[69]. Market and Capital Position - The market value of total assets under management in the Wealth Management Group increased by $180.6 million, or 8.1%, to $2.393 billion as of September 30, 2025[59]. - The Corporation issued $45.0 million in subordinated debt in June 2025, which qualifies as tier 2 capital at the holding company and tier 1 capital at the Bank[50]. - Uninsured deposits totaled $740.4 million, or 31.4% of total deposits, as of September 30, 2025, up from $652.3 million, or 27.2%, as of December 31, 2024[56]. Efficiency and Performance Ratios - Return on average assets increased to 1.15%, up from 0.88% year-over-year[70]. - Return on average equity rose to 12.89%, compared to 10.96% in the previous period[70]. - Efficiency ratio (unadjusted) improved to 61.32%, down from 65.85% year-over-year[70]. - The efficiency ratio (unadjusted) for Q3 2025 was 61.32%, significantly improved from 175.88% in Q2 2025[88].