Chemung Financial (US:CHMG) Globenewswireยท2025-01-28 21:15Core Viewpoint - Chemung Financial Corporation reported a net income of $23.7 million for the year ended December 31, 2024, a decrease from $25.0 million in 2023, with a fourth-quarter net income of $5.9 million, reflecting a solid performance despite an uncertain economic environment [1][2][3]. Financial Performance - Net interest income for 2024 was $74.1 million, down 0.5% from $74.5 million in 2023, influenced by a $14.1 million increase in interest expense on deposits and a $1.3 million decrease in interest income on taxable securities [6][9]. - The fully taxable equivalent net interest margin was 2.76% for 2024, compared to 2.85% in 2023, with average interest-earning assets increasing by $76.9 million [9]. - Non-interest income decreased by 5.3% to $23.2 million in 2024, primarily due to a $2.5 million drop in other non-interest income [13][14]. Loan and Asset Quality - Annual loan growth was 5.0% for 2024, with commercial and industrial loans growing by 13.3% and commercial real estate loans by 8.4% [11]. - Non-performing loans decreased to $9.0 million, or 0.43% of total loans, from $10.4 million, or 0.53%, in the previous year [41]. - The allowance for credit losses was $21.4 million as of December 31, 2024, down from $22.5 million a year earlier, reflecting improved economic forecasts [43]. Expenses and Taxation - Non-interest expense for 2024 increased by 4.8% to $67.3 million, driven by higher salaries and benefits [15][16]. - Income tax expense for 2024 was $6.4 million, slightly down from $6.5 million in 2023, with an effective tax rate increase to 21.3% [17]. Balance Sheet and Equity - Total assets rose to $2.776 billion as of December 31, 2024, an increase of 2.4% from the previous year, primarily due to a $98.8 million increase in loans [44]. - Total shareholders' equity increased by 10.3% to $215.3 million, driven by retained earnings from net income [52]. - The total equity to total assets ratio improved to 7.76% from 7.20% year-over-year [53]. Strategic Developments - The Bank opened a new full-service branch under the Canal Bank division in Williamsville, New York, consolidating previous operations to enhance regional presence [60]. - The Corporation's Wealth Management Group reported total assets under management of $2.212 billion, a slight decrease from the previous year, but excluding the Corporation's assets, there was a 2.6% increase [58].