Chemung Financial (US:CHMG)2025-11-06 16:09Financial Performance - Chemung Financial Corporation reported a net income of $2.5 million for the quarter, representing a 15% increase compared to the previous year[12]. - Net income for the three months ended September 30, 2025, was $7,792, a 36.3% increase compared to $5,720 for the same period in 2024[16]. - Earnings per share (EPS) for the quarter were reported at $0.75, a 12% increase compared to the same quarter last year[5]. - Basic and diluted earnings per share for Q3 2025 were $1.62, compared to $1.19 in Q3 2024, marking a 36.1% increase[16]. - Net income for the nine months ended September 30, 2025, was $7,363,000, a decrease from $17,757,000 in the same period of 2024[27]. - The net income for the core banking segment for the three months ended September 30, 2025, was $7,821, compared to $7,792 for the holding company and CFS, indicating a slight increase of 0.4%[133]. Assets and Liabilities - The total assets under management reached $1.2 billion, reflecting a growth of 10% year-over-year[11]. - The Corporation's total assets as of September 30, 2025, were $2,696,634, an increase from $2,663,118 in the previous quarter, representing a growth of approximately 1.3%[133]. - Total assets decreased to $2,696,634 thousand as of September 30, 2025, down from $2,776,147 thousand at December 31, 2024, representing a decline of approximately 2.9%[14]. - The total liabilities decreased to $2,451,326 thousand from $2,560,838 thousand, a reduction of about 4.3%[14]. - Total cash and cash equivalents at the end of the period were $107,646,000, an increase from $80,440,000 at the end of September 2024[27]. Income and Expenses - Non-interest income increased by 20% to $1.1 million, driven by higher fees from wealth management services[9]. - Total non-interest income was $6.1 million for the three months ended September 30, 2025, compared to $5.9 million for the same period in 2024, representing a year-over-year increase of approximately 3.4%[121]. - Total non-interest expenses for the three months ended September 30, 2025, were $17,645, compared to $15,174 in the previous quarter, reflecting an increase of approximately 16.3%[133]. - The Corporation reported net realized losses on securities available for sale of $17.5 million for the nine months ended September 30, 2025, with a tax effect of $(4.3) million, resulting in a net of tax amount of $13.2 million[119]. Credit Losses and Provisions - The allowance for credit losses (ACL) was reported at $500,000, indicating a decrease of 5% from the previous quarter[8]. - Provision for credit losses was $1,064 for the three months ended September 30, 2025, compared to $564 in the same period of 2024, indicating an increase in credit loss provisions[16]. - The allowance for credit losses increased to $23,645 thousand as of September 30, 2025, compared to $21,388 thousand at December 31, 2024, indicating a rise of about 10.6%[14]. - The total provision for credit losses for the nine months ended September 30, 2025, was $3.301 million, compared to a credit of $597 thousand for the same period in 2024[58]. Deposits and Loans - The total deposits increased by 8% to $950 million, reflecting strong customer retention and acquisition efforts[4]. - Total deposits decreased to $2,358,516 thousand, down 1.6% from $2,396,883 thousand as of December 31, 2024[14]. - The company had a net increase in loans of $131,981,000 for the nine months ended September 30, 2025[27]. - Total loans, net of deferred loan fees and costs, increased to $2,202,356,000 as of September 30, 2025, from $2,071,419,000 at December 31, 2024, indicating a growth of 6.3%[51]. Shareholder Equity and Dividends - Total shareholders' equity increased to $245,308 as of September 30, 2025, compared to $215,309 as of December 31, 2024, reflecting a growth of approximately 13.9%[14]. - Cash dividends declared were $0.98 per share, totaling $4,695,000 for the nine months ended September 30, 2025[27]. - Cash dividends declared were $0.34 per share in Q3 2025, an increase from $0.31 per share in Q3 2024[21]. Technology and Expansion - Chemung Financial Corporation plans to expand its market presence by opening two new branches in the upcoming fiscal year[7]. - The company is investing $1 million in new technology to enhance its digital banking services[6]. Securities and Investments - The fair value of available for sale securities as of September 30, 2025, was $280,514,000, down from $531,442,000 at December 31, 2024, indicating a decrease of 47.3%[42][45]. - Unrealized losses on available for sale securities totaled $50,843,000 as of September 30, 2025, with mortgage-backed securities accounting for 94.7% of these losses[48]. - The Corporation sold available for sale securities with a book value of $244.8 million during the second quarter of 2025, resulting in a realized pre-tax loss of $17.5 million[43]. Market and Economic Conditions - The Corporation closely monitors real estate market trends to assess the potential future deterioration in collateral values, which may impact the allowance for credit losses[68]. - The Corporation evaluates credit quality for retail loans based on loan repayment, with modifications subject to ASU 2022-02 being assigned a risk rating of Special Mention[75].