Chemung Financial (US:CHMG)2026-01-26 21:15Financial Performance - Fourth quarter 2025 net income was $7.7 million, or $1.61 per share, compared to $7.8 million, or $1.62 per share in Q3 2025, and $5.9 million, or $1.24 per share in Q4 2024[1]. - Annual net income for 2025 was $15.1 million, or $3.14 per share, including a $17.5 million loss on the sale of securities, down from $23.7 million, or $4.96 per share in 2024[1]. - Net income for the quarter was $7,741 million, an increase of 30.9% compared to $5,914 million in the previous year[74]. - The total net income for the year reached $27,878 million, compared to $23,671 million in the previous year, representing an increase of 17.5%[102]. Interest Income and Expenses - Net interest income for 2025 totaled $87.2 million, an increase of $13.1 million, or 17.7%, driven by a decrease of $8.3 million in interest expense on deposits[6]. - Interest income for the quarter was $34,219 million, compared to $33,884 million in the previous quarter[74]. - Interest income on interest-earning deposits decreased by $35.2 million due to a reduction in average balances and a 36 basis point decrease in average yield[25]. - Total interest expense decreased to $10,375 million from $11,196 million in the previous quarter[74]. Loans and Credit Quality - Total loans grew by $198.1 million, or 9.6% in 2025, with commercial loans increasing by $217.4 million, or 14.3%[10]. - Provision for credit losses for 2025 was $4.4 million, compared to a credit of $46 thousand in 2024, reflecting an increase of $4.5 million[14]. - Non-performing loans decreased to $7.9 million, or 0.35% of total loans, as of December 31, 2025, down from $9.0 million, or 0.43% a year earlier[45]. - The allowance for credit losses on loans increased to $24.2 million as of December 31, 2025, compared to $21.4 million a year earlier[47]. Non-Interest Income and Expenses - Non-interest income for 2025 was $7.9 million, a decrease of $15.3 million, or 65.9%, primarily due to a $17.5 million loss on sales of available for sale securities[15]. - Non-interest income for Q4 2025 totaled $6.7 million, a 9.8% increase from $6.1 million in the prior quarter, primarily due to increases in other non-interest income and wealth management fees[28]. - Non-interest expense for 2025 was $70.7 million, an increase of $3.4 million, or 5.1%, driven by higher salaries and wages[17]. - Non-interest expense increased to $18.4 million in Q4 2025, up 4.5% from $17.6 million in the prior quarter, driven by higher charitable donations and employee benefits[29]. Assets and Liabilities - Total assets decreased by $65.9 million, or 2.4%, to $2.710 billion as of December 31, 2025, compared to $2.776 billion as of December 31, 2024[49]. - Total liabilities decreased by $105.3 million, or 4.1%, to $2.456 billion as of December 31, 2025, compared to $2.561 billion as of December 31, 2024[53]. - Total deposits decreased by $126.2 million, or 5.3%, largely due to a decrease in brokered deposits of $92.2 million[54]. - Total shareholders' equity increased by $39.4 million, or 18.3%, to $254.7 million as of December 31, 2025[58]. Ratios and Returns - Return on average assets was 1.14%, a decrease from 1.15% in the prior period[75]. - Return on average equity decreased to 12.17% from 12.89%[75]. - Efficiency ratio (unadjusted) improved to 60.25% from 61.32%[75]. - The total equity to total assets ratio improved to 9.40% as of December 31, 2025, from 7.76% as of December 31, 2024[59]. Shareholder Information - Dividends declared during Q4 2025 were $0.34 per share[10]. - Basic and diluted earnings per share were $1.61, compared to $1.24 in the same quarter last year[74]. - Book value per share increased to $52.97 from $50.98[75]. - Cash dividends declared per share increased to $0.34 from $0.31 in the same quarter last year[74].