Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG),
the parent company of Chemung Canal Trust Company (the “Bank”),
today reported net income of $5.0 million, or $1.05 per share, for
the second quarter of 2024, compared to $7.1 million, or $1.48 per
share, for the first quarter of 2024, and $6.3 million, or $1.33
per share, for the second quarter of 2023.
“Commercial credit pipelines remain robust,
especially in our Capital District and Western New York markets,”
said Anders M. Tomson, President and CEO of the Corporation.
“Funding costs continue to remain challenging, impacting net
interest income expansion commensurate with our loan growth,”
Tomson added.
“We continue to remain focused on expense
management, especially with the rationalization of our branch
footprint. We recently announced that the Bank will be opening its
second office in Erie County as well as consolidating its Ithaca
Station office with the existing Elmira Road office,” said
Tomson.
Second Quarter Highlights:
- The Corporation's efficiency ratio improved by 88 basis points
to 69.19% for the second quarter of 2024, compared to the prior
quarter, and 123 basis points from the fourth quarter of 2023.
1
- Tangible equity to tangible assets improved by 22 basis points
to 6.56% as of June 30, 2024, compared to prior quarter-end, and 11
basis points compared to December 31, 2023. 1
- The Corporation announced the establishment of Canal Bank, a
division of Chemung Canal Trust Company, and a new regional banking
center in Williamsville, New York.
- Dividends declared during the second quarter 2024 were $0.31
per share.
1 See the GAAP to Non-GAAP reconciliations.
2nd Quarter 2024 vs 1st Quarter
2024
Net Interest Income:
Net interest income for the second quarter of
2024 totaled $17.8 million compared to $18.1 million for the prior
quarter, a decrease of $0.3 million, or 1.7%, driven primarily by
an increase of $0.6 million in interest expense on deposits and a
decrease of $0.3 million in interest income on taxable securities,
offset by increases of $0.3 million in interest income on loans,
including fees and $0.2 million in interest income on
interest-earning deposits, and a decrease of $0.1 million in
interest expense on borrowed funds.
Interest expense on deposits increased primarily
due to growth in the average balances of customer time deposits and
an increase of 11 basis points in the average interest rate paid on
total interest-bearing deposits, compared to the prior quarter.
Average balances of total interest-bearing deposits increased $14.0
million, which was comprised of an increase of $34.2 million in
customer interest-bearing deposits and a decrease of $20.2 million
in brokered deposits. Average balances of customer time deposits
increased $47.1 million and the average cost of customer time
deposits increased 20 basis points compared to the prior quarter,
while the average cost of brokered deposits decreased two basis
points. Customer time deposits comprised 21.9% of average total
deposits for the three months ended June 30, 2024, compared to
20.1% for the three months ended March 31, 2024. The increase in
the average balances and average cost of customer time deposits was
primarily due to the continuation of CD campaigns in the current
quarter. The decrease in interest income on taxable securities was
primarily due to lower average balances of mortgage-backed and SBA
pooled loan securities and additional amortization expense on SBA
pooled loan securities, both due to paydown activity.
Interest income on loans, including fees,
increased primarily due to a $32.1 million increase in average
commercial loan balances, compared to the prior quarter. Average
balances of consumer and residential mortgage loans decreased
by $7.3 million and $4.2 million respectively, while average
yields of consumer and residential mortgages increased 11 and two
basis points respectively, compared to the prior quarter. Demand
for commercial originations remained strong, while demand for
residential mortgages remained weaker due to market conditions. The
Corporation continued to elect to sell a larger portion of its
residential mortgage originations into the secondary market. The
increase in interest income on interest-earning deposits was due to
an increase of $11.5 million in average balances compared to the
prior quarter. The decrease in interest expense on borrowed funds
was due primarily to a decrease in the average cost of total
borrowings of 11 basis points, and a decrease in average balances
of borrowed funds of $3.7 million in the current quarter, compared
to the prior quarter. The average cost of total borrowings for the
current quarter was 5.04%, compared to 5.15% in the prior quarter,
primarily due to the Corporation's utilization of the lower cost
Bank Term Funding Program (BTFP) for the entirety of the second
quarter, partially replacing higher cost FHLBNY borrowings.
Fully taxable equivalent net interest margin was
2.66% in the current quarter, compared to 2.73% in the prior
quarter. Contraction in net interest margin in the current quarter
was partially attributable to $0.3 million in interest income
recognized on the payoff of a nonaccrual commercial loan in the
prior quarter, additional amortization expense on SBA pooled loan
securities in the current quarter, and an increase of nine basis
points in the average cost of interest-bearing liabilities in the
current quarter, to 2.94%. Average balances of interest-earning
assets increased $18.3 million in the current quarter, compared to
the prior quarter, while the average yield on interest-earning
assets decreased one basis point, compared to the prior quarter, to
4.69%.
Provision for Credit
Losses:
Provision for credit losses increased $2.9
million in the current quarter compared to the prior quarter.
Provisioning in the current quarter was primarily attributable to
loan growth in the commercial portfolio, declining prepayment
assumptions used in the Bank's CECL model, and a $0.2 million
specific allocation on a commercial and industrial loan. Also
contributing to the increase in the current quarter was the annual
review and update of the loss drivers used in the Bank's CECL model
during the prior quarter, which resulted in a reduction in the
allowance for credit losses and a provision release of $2.0 million
in the prior quarter.
Non-Interest Income:
Non-interest income for the second quarter of
2024 was $5.6 million, compared to $5.7 million for the prior
quarter, a decrease of $0.1 million, or 1.8%. The decrease was
driven primarily by decreases of $0.2 million in other non-interest
income and $0.1 million in the change in fair value of equity
investments, offset by an increase of $0.2 million in wealth
management group fee income.
The decrease in other non-interest income was
primarily attributable to the receipt of vendor incentives in the
prior quarter. The decrease in the change in fair value of equity
investments was primarily attributable to a smaller increase in the
market value of assets held for the Corporation's deferred
compensation plan during the current quarter, compared to the prior
quarter. The increase in wealth management group fee income was
primarily due an increase in tax preparation service fee income in
the current quarter.
Non-Interest Expense:
Non-interest expense for the second quarter of
2024 was $16.2 million, compared to $16.7 million for the prior
quarter, a decrease of $0.5 million, or 3.0%. The decrease was
driven primarily by decreases of $0.3 million in data processing
and $0.2 million in salaries and wages.
The decrease in data processing was primarily
due to a decrease in third party core processor expenses in the
current quarter, compared to the prior quarter. The decrease in
salaries and wages was primarily attributable to a smaller increase
in the market value of assets held for the Corporation's deferred
compensation plan and the recognition of expenses in the prior
quarter related to the realignment of certain back office
functions.
Income Tax Expense:
Income tax expense for the second quarter of
2024 was $1.3 million, compared to $2.0 million for the prior
quarter, a decrease of $0.7 million. The effective tax rate for the
current quarter decreased to 20.3% from 22.4% in the prior quarter.
The decrease in income tax expense was primarily attributable to a
decrease in pretax income.
2nd Quarter 2024 vs 2nd Quarter
2023
Net Interest Income:
Net interest income for the second quarter of
2024 totaled $17.8 million compared to $18.6 million for the same
period in the prior year, a decrease of $0.8 million, or 4.3%,
driven primarily by increases of $4.2 million in interest expense
on deposits and $0.2 million in interest expense on borrowed funds,
offset by an increase of $3.7 million in interest income on loans,
including fees.
Interest expense on deposits increased primarily
due to a 85 basis points increase in the average interest rate paid
on interest-bearing deposits, which included brokered deposits, and
an increase of $152.9 million in the average balance of customer
interest-bearing deposits. Both the increase in the average
interest rate paid and the average balances of customer
interest-bearing deposits were primarily attributable to continued
focus on CD campaigns throughout the second half of 2023 and first
half of 2024, as well as a general shift in the deposit mix towards
higher cost accounts. The average balances of brokered deposits
decreased $55.0 million, while the average interest rate paid on
brokered deposits increased 23 basis points, compared to the same
period in the prior year. Average balances of brokered deposits
decreased primarily due to the utilization of the BTFP and FHLBNY
term advances in the current quarter, which were not utilized in
the same period in the prior year.
The increase in interest expense on borrowed
funds was primarily due to a $15.5 million increase in the average
balances of borrowed funds, partially offset by a decrease of nine
basis points in the average interest rate paid on borrowed funds.
Changes in the composition of borrowed funds reflects the
Corporation's shift to the lower cost BTFP, as well as FHLBNY term
advances, partially replacing FHLBNY overnight advances in the
current quarter. The average balances of FHLBNY overnight advances
decreased $43.1 million, while the average interest rate paid on
FHLBNY overnight advances increased 29 basis points, compared to
the same period in the prior year.
Interest income on loans, including fees,
increased primarily due to a $151.0 million increase in average
commercial loan balances and an increase of 33 basis points in the
average yield on commercial loans, compared to the same period in
the prior year. Commercial loan growth was primarily concentrated
in the Albany region of New York, with additional growth in Western
New York. Average consumer loan balances decreased $9.9 million,
primarily due to lower indirect auto loan origination activity in
the first half of 2024, compared to the prior year, while the
average yield on consumer loans increased 78 basis points,
primarily due to runoff of older vintage indirect auto loans and
interest rate increases on variable rate home equity loans. Average
balances of residential mortgage loans decreased $11.4 million
compared to the same period in the prior year, due to lower
origination activity and an increase in sales of new originations
into the secondary market, while the average yield on residential
mortgage loans increased 23 basis points compared to the same
period in the prior year.
Fully taxable equivalent net interest margin was
2.66% for the second quarter 2024, compared to 2.87% for the same
period in the prior year. The Corporation exhibited a greater level
of liability sensitivity in the second half of 2023 and first half
of 2024, compared to the greater asset sensitivity experienced at
the beginning of the current rising interest rate environment. The
average cost of interest-bearing liabilities increased 83 basis
points to 2.94%, for the second quarter of 2024, and average
balances of interest-bearing liabilities increased $113.3 million,
while the average yield on interest-earning assets increased 40
basis points to 4.69% and average balances of interest-earning
assets increased $89.5 million. Growth in average balances of
interest-bearing liabilities exceeded growth in average balances of
interest-earning assets by $23.8 million between the second
quarters of 2023 and 2024 due to a shift in the overall deposit mix
to higher cost account types, particularly to time deposits.
Provision for Credit
Losses:
Provision for credit losses increased $0.6
million in the second quarter of 2024, compared to the same period
in the prior year. The increase was primarily attributable to more
favorable changes to FOMC forecasts between the first and second
quarters of 2023, compared to the changes between the first and
second quarters of 2024, a decline in modeled prepayment speeds in
the current period, and a $0.2 million specific allocation on a
commercial and industrial loan in the current period. Net charge
offs increased $0.2 million in the current period, compared to the
same period in the prior year.
Non-Interest Income:
Non-interest income for the second quarter of
2024 was $5.6 million compared to $5.4 million for the same period
in the prior year, an increase of $0.2 million, or 3.7%. The
increase was primarily driven by increases of $0.3 million in
wealth management group fee income and $0.1 million in the change
in fair value of equity investments, partially offset by a decrease
of $0.2 million in other non-interest income. The increase in
wealth management group fee income was primarily attributable to an
increase of 9.8% in assets under management, compared to the same
period in the prior year. The increase in the change in fair value
of equity investments was primarily due to a decline in the market
value of a particular asset held by the Corporation during the same
period in the prior year. The decrease in other non-interest income
was primarily due to a decrease in swap fee income during the
current period, compared to the same period in the prior year, and
a decrease in other small items of non-interest income.
Non-Interest Expense:
Non-interest expense for the second quarter of
2024 was $16.2 million compared to $15.9 million for the same
period in the prior year, an increase of $0.3 million, or 1.9%. The
increase was primarily driven by increases of $0.3 million in
pension and other employee benefits, $0.2 million in marketing and
advertising, $0.2 million in other non-interest expense, and $0.1
million in salaries and wages, partially offset by decreases of
$0.2 million in data processing and $0.1 million in loan
expenses.
The increase in pension and other employee
benefits for the current quarter was primarily attributable to an
increase in employee healthcare expenses, compared to the same
period in the prior year. Marketing and advertising increased
during the current quarter compared to the same period in the prior
year primarily due to a deposit account promotion relating to the
Bank's 190th anniversary, increased advertising activity in the
current year period, and consulting engagements. Other non-interest
expense increased primarily due to an increase in expenses related
to community relations and other miscellaneous expense. Salaries
and wages increased primarily due to base salary increases and an
increase in the market value of assets held for the Corporation's
deferred compensation plan. The decrease in data processing for the
current period compared to the same period in the prior year was
primarily due to a decrease in core processing expenses. The
decrease in loan expenses was partially attributable to lower
collection-related fees and overall lower origination activity.
Income Tax Expense:
Income tax expense for the second quarter of
2024 was $1.3 million compared to $1.6 million for the second
quarter of 2023, a decrease of $0.3 million. The effective tax rate
for the current quarter was 20.3%, compared to 20.4% for the same
period in the prior year. The decrease in income tax expense was
primarily attributable to a decrease in pretax income.
Asset Quality
Non-performing loans totaled $8.2 million as of
June 30, 2024, or 0.41% of total loans, compared to $10.4 million,
or 0.53% of total loans as of December 31, 2023. The decrease in
non-performing loans was primarily attributable to the payoff of a
nonaccrual commercial real estate loan totaling $1.9 million, as
well as $0.6 million in paydown activity on other nonaccrual
commercial loans, $1.2 million in paydown activity on nonaccrual
consumer and residential mortgage loans, and $0.5 million in net
consumer loan charge offs, partially offset by $2.4 million in
newly designated nonaccrual loans. Non-performing assets, which are
comprised of non-performing loans, other real estate owned, and
repossessed vehicles, were $8.9 million, or 0.32% of total assets,
as of June 30, 2024, compared to $10.7 million, or 0.40% of total
assets, as of December 31, 2023. Other real estate owned was $0.5
million and repossessed vehicles was $0.1 million as of June 30,
2024. The decrease in non-performing assets can be attributed to
the decrease in non-performing loans.
Total loan delinquencies as of June 30, 2024
declined compared to December 31, 2023, primarily attributable to
declines in commercial and consumer loan delinquency rates during
the period, partially offset by an increase in residential mortgage
delinquency rates. Management continues to monitor the impact that
elevated interest rates may have on its borrowers. Annualized net
charge-offs to total average loans for the second quarter of 2024
were 0.06%, compared to 0.04% for the first quarter of 2024, and
0.05% for the year ended December 31, 2023. Annualized consumer net
charge-offs for the six months ended June 30, 2024 were 0.38% of
average consumer loan balances and 0.46% of average consumer loan
balances for the second quarter of 2024, primarily concentrated in
indirect auto loans, while commercial loans and residential
mortgage loans each had net recovery rates for the six months ended
June 30, 2024 and the second quarter of 2024.
The allowance for credit losses was $21.0
million as of June 30, 2024 and $22.5 million as of December 31,
2023. The allowance for credit losses on unfunded commitments, a
component of other liabilities, was $0.8 million as of June 30,
2024 and $0.9 million as of December 31, 2023. The decrease in the
allowance for credit losses was primarily attributable to the
annual review and update to the loss drivers which the Bank's CECL
model is based upon. Recalibration of the loss drivers resulted in
a decline in the baseline loss rates which the model utilizes. FOMC
projections for the economic variables used in the model were
relatively unchanged between December 31, 2023 and June 30, 2024.
Declines in prepayment speeds between December 31, 2023 and June
30, 2024 increased modeled reserve requirements, particularly for
residential mortgage loans, as did an increase in loan balances
between December 31, 2023 and June 30, 2024.
The allowance for credit losses was 256.63% of
non-performing loans as of June 30, 2024 and 216.28% as of December
31, 2023. The allowance for credit losses to total loans was 1.05%
as of June 30, 2024 and 1.14% as of December 31, 2023. Provision
for credit losses as a percentage of period-end loan balances was
0.04% for the second quarter of 2024.
Balance Sheet Activity
Total assets were $2.756 billion as of June 30,
2024 compared to $2.711 billion as of December 31, 2023, an
increase of $45.3 million, or 1.7%. The increase can mostly be
attributed to increases of $38.8 million in loans, net of deferred
origination fees and costs, $33.4 million in cash and cash
equivalents, $4.0 million in accrued interest receivable and other
assets, and a decrease of $1.5 million in the allowance for credit
losses, offset by a decrease of $33.2 million in total investment
securities.
The increase in loans, net of deferred
origination fees and costs, was concentrated in the commercial loan
portfolio, which increased by $57.9 million, or 4.2%, compared to
prior year-end. Commercial loan growth during the current period
was concentrated in the Albany region of New York. Consumer loans
decreased by $12.8 million, or 4.2%, primarily driven by weaker
origination activity in indirect auto loans during the current six
month period, compared to the prior two years, and the relatively
fast turnover rate of the portfolio. Residential mortgages
decreased by $6.4 million, or 2.3%, as the Corporation continued to
sell a greater proportion of originations into the secondary market
and market conditions kept demand for originations subdued.
The increase in cash and cash equivalents was
primarily due to $50.0 million in advances from the Federal Reserve
BTFP and $26.8 million in paydowns and maturities of securities,
primarily offset by an increase of $38.8 million in loans, net of
deferred origination fees and costs and a decrease of $13.5 million
in total deposits, compared to prior year-end. The increase in
accrued interest receivable and other assets was primarily due to
increases in interest rate swap assets of $1.5 million, due to an
increase in the market value of swaps, and $1.5 million in deferred
tax assets.
Total investment securities decreased primarily
due to a decrease of $33.1 million in securities available for
sale, compared to prior year-end. Net paydowns and maturities on
securities available for sale for the current period
totaled $26.7 million, primarily attributable to paydowns on
mortgage-backed securities and SBA pooled-loan securities. The
market value of securities available for sale declined by $5.3
million, due to unfavorable changes in interest rates during the
first half of the year.
Total liabilities were $2.555 billion as of June
30, 2024 compared to $2.515 billion as of December 31, 2023, an
increase of $39.3 million, or 1.6%. The increase in total
liabilities can primarily be attributed to increases of $48.9
million in advances and other debt and $3.8 million in accrued
interest payable and other liabilities, partially offset by a
decrease of $13.5 million in deposits.
Total deposits decreased by $13.5 million or
0.6%, compared to prior year-end, primarily due to decreases of
$34.0 million, or 5.2% in non-interest bearing demand deposits and
$10.6 million, or 1.7% in money market deposits. Total time
deposits decreased $5.6 million, or 0.9%, driven by a decrease of
$73.3 million in brokered deposits and offset by an increase of
$67.7 million in customer time deposits. Additionally, savings
deposits decreased by $0.6 million. These decreases were partially
offset by an increase of $37.2 million in interest bearing demand
deposits, or 12.8%. Non- interest bearing deposits comprised 25.6%
and 26.9% of total deposits as of June 30, 2024 and December 31,
2023 respectively.
The increase in advances and other debt can
primarily be attributed to a $50.0 million advance from the Federal
Reserve, as the Corporation took advantage of lower interest rates
offered by the BTFP, and a $30.0 million FHLBNY short term advance,
offset by a decrease of $31.9 million in FHLBNY overnight advances.
The increase in accrued interest payable and other liabilities was
primarily due to increases in interest payable on borrowed funds of
$1.2 million and interest payable on deposits of $0.9 million, as
well as an increase in interest rate swap liabilities of $0.8
million, primarily due to an increase in the market value of
swaps.
Total shareholders’ equity was $201.2 million as
of June 30, 2024, compared to $195.2 million as of December 31,
2023, an increase of $6.0 million, or 3.1%, primarily driven by an
increase of $9.1 million in retained earnings, offset by an
increase of $3.9 million in accumulated other comprehensive loss.
The increase in retained earnings was due primarily to net income
of $12.0 million, offset by dividends declared of $2.9 million, and
the increase in accumulated other comprehensive loss was primarily
attributable to the unfavorable impact of interest rates on
available for sale securities during the first half of 2024.
The total equity to total assets ratio was 7.30%
as of June 30, 2024, compared to 7.20% as of December 31, 2023, and
the tangible equity to tangible assets ratio was 6.56% as of June
30, 2024, compared to 6.45% as of December 31, 20231. Book value
per share increased to $42.17 as of June 30, 2024 from $41.07 as of
December 31, 2023. As of June 30, 2024, the Bank’s capital ratios
were in excess of those required to be considered well-capitalized
under the regulatory framework for prompt corrective action.
1 See the GAAP to Non-GAAP reconciliations
Liquidity
The Corporation uses a variety of resources to
manage its liquidity, and management believes it has the necessary
liquidity to allow for flexibility in meeting its various business
needs. These include short-term investments, cash flow from lending
and investing activities, core-deposit growth and non-core funding
sources, such as time deposits of $250,000 or greater,
brokered deposits, FHLBNY advances, and FRB Bank Term Funding
Program (BTFP) advances. No new borrowings could be made under the
BTFP after March 11, 2024. As of June 30, 2024, the Corporation's
cash and cash equivalents balance was $70.2 million. The
Corporation also maintains an investment portfolio of securities
available for sale, comprised primarily of US Government treasury
securities, SBA loan pools, mortgage-backed securities, and
municipal bonds. Although this portfolio generates interest income
for the Corporation, it also serves as an available source of
liquidity and capital if the need should arise. As of June 30,
2024, the Corporation's investment in securities available for sale
was $550.9 million, $206.4 million of which was not pledged as
collateral. Additionally, as of June 30, 2024, the Bank's total
advance line capacity at the Federal Home Loan Bank of New York was
$221.4 million. The Bank utilized $30.0 million of this capacity
and had $191.4 million in additional available capacity as of June
30, 2024. Borrowings may be used on a short-term basis for
liquidity purposes or on a long-term basis to fund asset growth. In
January 2024, the Corporation utilized the BTFP with an advance of
$50.0 million, maturing in January 2025, however BTFP advances may
be prepaid at any time without prepayment penalty.
As of June 30, 2024, uninsured deposits totaled
$635.2 million, or 26.3% of total deposits, including $188.8
million of municipal deposits that were collateralized by pledged
assets. As of December 31, 2023, uninsured deposits
totaled $655.7 million, or 27.0% of total deposits, including
$153.2 million of municipal deposits that were collateralized by
pledged assets. Due to their fluidity, the Corporation closely
monitors uninsured deposit levels when considering liquidity
management strategies.
The Corporation considers brokered deposits to
be an element of its deposit strategy, and anticipates it may
continue utilizing brokered deposits as a secondary source of
funding in support of growth. As of June 30, 2024, the Corporation
had entered into brokered deposit arrangements with multiple
brokers. As of June 30, 2024, brokered deposits carried terms
between 3 and 48 months, with staggered maturities, totaling $69.5
million. Excluding brokered deposits, total deposits increased
$59.8 million compared to December 31, 2023.
Other Items
The market value of total assets under
management or administration in our Wealth Management Group
was $2.377 billion as of June 30, 2024, including $412.1
million of assets under management or administration for the
Corporation, compared to $2.242 billion as of December 31, 2023,
including $381.3 million of assets under management or
administration for the Corporation, an increase of $134.9 million,
or 6.0%, due primarily to relatively strong equity markets during
2024.
As previously announced on January 8, 2021, the
Corporation's Board of Directors approved a stock repurchase
program. Under the repurchase program, the Corporation may
repurchase up to 250,000 shares of its common stock, or
approximately 5% of its then outstanding shares. The repurchase
program permits shares to be repurchased in open market or
privately negotiated transactions, through block trades, and
pursuant to any trading plan that may be adopted in accordance with
Rule 10b5-1 of the Securities Exchange Act of 1934. As of June 30,
2024, a total of 49,184 shares of common stock at a total cost of
$2.0 million were repurchased by the Corporation under its share
repurchase program. No shares were repurchased in the second
quarter of 2024. The weighted average cost was $40.42 per share
repurchased. Remaining buyback authority under the share repurchase
program was 200,816 shares as of June 30, 2024.
About Chemung Financial
Corporation
Chemung Financial Corporation is a $2.8 billion
financial services holding company headquartered in Elmira, New
York and operates 31 retail offices through its principal
subsidiary, Chemung Canal Trust Company, a full service community
bank with trust powers. Established in 1833, Chemung Canal Trust
Company is the oldest locally-owned and managed community bank in
New York State. Chemung Financial Corporation is also the parent of
CFS Group, Inc., a financial services subsidiary offering
non-traditional services including mutual funds, annuities,
brokerage services, tax preparation services, and insurance.
This press release may be found at: www.chemungcanal.com under
Investor Relations.
Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Securities Exchange Act, and the Private
Securities Litigation Reform Act of 1995. The Corporation intends
its forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in this press release.
All statements regarding the Corporation's expected financial
position and operating results, the Corporation's business
strategy, the Corporation's financial plans, forecasted demographic
and economic trends relating to the Corporation's industry and
similar matters are forward-looking statements. These statements
can sometimes be identified by the Corporation's use of
forward-looking words such as "may," "will," "anticipate,"
"estimate," "expect," or "intend." The Corporation cannot promise
that its expectations in such forward-looking statements will turn
out to be correct. The Corporation's actual results could be
materially different from expectations because of various factors,
including changes in economic conditions or interest rates, credit
risk, inflation, cyber security risks, difficulties in managing the
Corporation’s growth, competition, changes in law or the regulatory
environment, and changes in general business and economic
trends.
Information concerning these and other factors,
including Risk Factors, can be found in the Corporation’s periodic
filings with the Securities and Exchange Commission (“SEC”),
including the 2023 Annual Report on Form 10-K. These filings are
available publicly on the SEC's website at http://www.sec.gov, on
the Corporation's website at http:// www.chemungcanal.com or upon
request from the Corporate Secretary at (607) 737-3746. Except as
otherwise required by law, the Corporation undertakes no obligation
to publicly update or revise its forward-looking statements,
whether as a result of new information, future events, or
otherwise.
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2023 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
| Cash and due from financial
institutions |
|
$ |
23,184 |
|
|
$ |
22,984 |
|
|
$ |
22,247 |
|
|
$ |
52,563 |
|
|
$ |
25,499 |
|
| Interest-earning deposits in
other financial institutions |
|
|
47,033 |
|
|
|
71,878 |
|
|
|
14,600 |
|
|
|
23,017 |
|
|
|
28,727 |
|
|
Total cash and cash equivalents |
|
|
70,217 |
|
|
|
94,862 |
|
|
|
36,847 |
|
|
|
75,580 |
|
|
|
54,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity investments |
|
|
3,090 |
|
|
|
3,093 |
|
|
|
3,046 |
|
|
|
2,811 |
|
|
|
2,841 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities available for
sale |
|
|
550,927 |
|
|
|
566,028 |
|
|
|
583,993 |
|
|
|
569,004 |
|
|
|
604,313 |
|
| Securities held to maturity |
|
|
657 |
|
|
|
785 |
|
|
|
785 |
|
|
|
1,804 |
|
|
|
1,804 |
|
| FHLB and FRB stock, at cost |
|
|
5,506 |
|
|
|
4,071 |
|
|
|
5,498 |
|
|
|
4,053 |
|
|
|
6,328 |
|
|
Total investment securities |
|
|
557,090 |
|
|
|
570,884 |
|
|
|
590,276 |
|
|
|
574,861 |
|
|
|
612,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial |
|
|
1,445,258 |
|
|
|
1,425,437 |
|
|
|
1,387,321 |
|
|
|
1,341,017 |
|
|
|
1,302,333 |
|
| Mortgage |
|
|
271,620 |
|
|
|
277,246 |
|
|
|
277,992 |
|
|
|
281,361 |
|
|
|
285,084 |
|
| Consumer |
|
|
294,594 |
|
|
|
300,927 |
|
|
|
307,351 |
|
|
|
308,310 |
|
|
|
306,489 |
|
|
Loans, net of deferred loan fees |
|
|
2,011,472 |
|
|
|
2,003,610 |
|
|
|
1,972,664 |
|
|
|
1,930,688 |
|
|
|
1,893,906 |
|
| Allowance for credit losses |
|
|
(21,031 |
) |
|
|
(20,471 |
) |
|
|
(22,517 |
) |
|
|
(20,252 |
) |
|
|
(20,172 |
) |
|
Loans, net |
|
|
1,990,441 |
|
|
|
1,983,139 |
|
|
|
1,950,147 |
|
|
|
1,910,436 |
|
|
|
1,873,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans held for sale |
|
|
381 |
|
|
|
96 |
|
|
|
— |
|
|
|
— |
|
|
|
785 |
|
| Premises and equipment, net |
|
|
14,731 |
|
|
|
14,183 |
|
|
|
14,571 |
|
|
|
15,036 |
|
|
|
15,496 |
|
| Operating lease right-of-use
assets |
|
|
5,827 |
|
|
|
6,018 |
|
|
|
5,648 |
|
|
|
5,850 |
|
|
|
6,050 |
|
| Goodwill |
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
| Accrued interest receivable and
other assets |
|
|
92,212 |
|
|
|
90,791 |
|
|
|
88,170 |
|
|
|
101,436 |
|
|
|
87,272 |
|
|
Total assets |
|
$ |
2,755,813 |
|
|
$ |
2,784,890 |
|
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
| Non-interest-bearing demand
deposits |
|
$ |
619,192 |
|
|
$ |
656,330 |
|
|
$ |
653,166 |
|
|
$ |
683,348 |
|
|
$ |
671,643 |
|
| Interest-bearing demand
deposits |
|
|
328,370 |
|
|
|
315,154 |
|
|
|
291,138 |
|
|
|
310,885 |
|
|
|
273,380 |
|
| Money market accounts |
|
|
613,131 |
|
|
|
631,350 |
|
|
|
623,714 |
|
|
|
626,256 |
|
|
|
629,985 |
|
| Savings deposits |
|
|
248,528 |
|
|
|
248,578 |
|
|
|
249,144 |
|
|
|
261,822 |
|
|
|
269,700 |
|
| Time deposits |
|
|
606,700 |
|
|
|
629,360 |
|
|
|
612,265 |
|
|
|
591,188 |
|
|
|
545,486 |
|
|
Total deposits |
|
|
2,415,921 |
|
|
|
2,480,772 |
|
|
|
2,429,427 |
|
|
|
2,473,499 |
|
|
|
2,390,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Advances and other debt |
|
|
83,835 |
|
|
|
52,979 |
|
|
|
34,970 |
|
|
|
3,120 |
|
|
|
53,949 |
|
| Operating lease liabilities |
|
|
6,009 |
|
|
|
6,197 |
|
|
|
5,827 |
|
|
|
6,028 |
|
|
|
6,228 |
|
| Accrued interest payable and
other liabilities |
|
|
48,826 |
|
|
|
47,814 |
|
|
|
45,064 |
|
|
|
55,123 |
|
|
|
46,876 |
|
|
Total liabilities |
|
|
2,554,591 |
|
|
|
2,587,762 |
|
|
|
2,515,288 |
|
|
|
2,537,770 |
|
|
|
2,497,247 |
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
| Common stock |
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
| Additional paid-in
capital |
|
48,102 |
|
|
|
47,794 |
|
|
|
47,773 |
|
|
|
47,974 |
|
|
|
47,740 |
|
| Retained
earnings |
|
239,021 |
|
|
|
235,506 |
|
|
|
229,930 |
|
|
|
227,596 |
|
|
|
221,412 |
|
| Treasury stock, at
cost |
|
(16,043 |
) |
|
|
(16,147 |
) |
|
|
(16,502 |
) |
|
|
(16,880 |
) |
|
|
(17,033 |
) |
| Accumulated other
comprehensive loss |
|
(69,911 |
) |
|
|
(70,078 |
) |
|
|
(66,013 |
) |
|
|
(88,679 |
) |
|
|
(74,746 |
) |
|
Total shareholders' equity |
|
201,222 |
|
|
|
197,128 |
|
|
|
195,241 |
|
|
|
170,064 |
|
|
|
177,426 |
|
|
Total liabilities and shareholders' equity |
$ |
2,755,813 |
|
|
$ |
2,784,890 |
|
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
| Period-end shares
outstanding |
4,772 |
|
4,768 |
|
4,754 |
|
4,738 |
|
4,732 |
|
| Chemung Financial
CorporationConsolidated Statements of Income
(Unaudited) |
|
| |
|
Three Months EndedJune
30, |
|
Percent |
|
|
Six Months EndedJune
30, |
|
Percent |
|
(in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
| Interest and dividend
income: Loans, including fees |
$ |
27,514 |
|
$ |
23,791 |
|
15.6 |
|
|
$ |
54,712 |
|
$ |
46,080 |
|
18.7 |
|
| Taxable securities |
|
3,251 |
|
|
3,630 |
|
(10.4 |
) |
|
|
6,808 |
|
|
7,213 |
|
(5.6 |
) |
| Tax exempt securities |
|
254 |
|
|
259 |
|
(1.9 |
) |
|
|
512 |
|
|
520 |
|
(1.5 |
) |
| Interest-earning deposits |
|
367 |
|
|
116 |
|
216.4 |
|
|
|
573 |
|
|
213 |
|
169.0 |
|
|
Total interest and dividend income |
|
31,386 |
|
|
27,796 |
|
12.9 |
|
|
|
62,605 |
|
|
54,026 |
|
15.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
expense: Deposits |
|
12,711 |
|
|
8,469 |
|
50.1 |
|
|
|
24,856 |
|
|
13,856 |
|
79.4 |
|
| Borrowed funds |
|
914 |
|
|
732 |
|
24.9 |
|
|
|
1,899 |
|
|
1,628 |
|
16.6 |
|
|
Total interest expense |
|
13,625 |
|
|
9,201 |
|
48.1 |
|
|
|
26,755 |
|
|
15,484 |
|
72.8 |
|
|
Net interest income |
|
17,761 |
|
|
18,595 |
|
(4.5 |
) |
|
|
35,850 |
|
|
38,542 |
|
(7.0 |
) |
| Provision (credit) for credit
losses |
|
879 |
|
|
236 |
|
272.5 |
|
|
|
(1,161 |
) |
|
513 |
|
(326.3 |
) |
|
Net interest income after provision for credit losses |
|
16,882 |
|
|
18,359 |
|
(8.0 |
) |
|
|
37,011 |
|
|
38,029 |
|
(2.7 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
income: Wealth management group fee income |
|
2,860 |
|
|
2,603 |
|
9.9 |
|
|
|
5,563 |
|
|
5,183 |
|
7.3 |
|
| Service charges on deposit
accounts |
|
964 |
|
|
959 |
|
0.5 |
|
|
|
1,913 |
|
|
1,900 |
|
0.7 |
|
| Interchange revenue from debit
card transactions |
|
1,141 |
|
|
1,194 |
|
(4.4 |
) |
|
|
2,204 |
|
|
2,327 |
|
(5.3 |
) |
| Change in fair value of equity
investments |
|
14 |
|
|
(103 |
) |
113.6 |
|
|
|
115 |
|
|
(31 |
) |
471.0 |
|
| Net gains on sales of loans held
for sale |
|
39 |
|
|
18 |
|
116.7 |
|
|
|
71 |
|
|
23 |
|
208.7 |
|
| Net gains (losses) on sales of
other real estate owned |
|
(3 |
) |
|
14 |
|
(121.4 |
) |
|
|
(3 |
) |
|
14 |
|
(121.4 |
) |
| Income from bank owned life
insurance |
|
10 |
|
|
11 |
|
(9.1 |
) |
|
|
19 |
|
|
21 |
|
(9.5 |
) |
| Other |
|
573 |
|
|
751 |
|
(23.7 |
) |
|
|
1,373 |
|
|
1,433 |
|
(4.2 |
) |
|
Total non-interest income |
|
5,598 |
|
|
5,447 |
|
2.8 |
|
|
|
11,255 |
|
|
10,870 |
|
3.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
expense: Salaries and wages |
|
6,823 |
|
|
6,704 |
|
1.8 |
|
|
|
13,839 |
|
|
13,487 |
|
2.6 |
|
| Pension and other employee
benefits |
|
2,078 |
|
|
1,808 |
|
14.9 |
|
|
|
4,160 |
|
|
3,488 |
|
19.3 |
|
| Other components of net periodic
pension and postretirement benefits |
|
(232 |
) |
|
(174 |
) |
(33.3 |
) |
|
|
(464 |
) |
|
(348 |
) |
(33.3 |
) |
| Net occupancy |
|
1,445 |
|
|
1,440 |
|
0.3 |
|
|
|
2,938 |
|
|
2,905 |
|
1.1 |
|
| Furniture and equipment |
|
397 |
|
|
461 |
|
(13.9 |
) |
|
|
795 |
|
|
879 |
|
(9.6 |
) |
| Data processing |
|
2,297 |
|
|
2,473 |
|
(7.1 |
) |
|
|
4,870 |
|
|
4,854 |
|
0.3 |
|
| Professional services |
|
558 |
|
|
602 |
|
(7.3 |
) |
|
|
1,117 |
|
|
1,042 |
|
7.2 |
|
| Marketing and advertising |
|
388 |
|
|
170 |
|
128.2 |
|
|
|
733 |
|
|
502 |
|
46.0 |
|
| Other real estate owned
expense |
|
12 |
|
|
1 |
|
N/M |
|
|
61 |
|
|
39 |
|
56.4 |
|
| FDIC insurance |
|
516 |
|
|
586 |
|
(11.9 |
) |
|
|
1,093 |
|
|
1,083 |
|
0.9 |
|
| Loan expense |
|
200 |
|
|
308 |
|
(35.1 |
) |
|
|
455 |
|
|
540 |
|
(15.7 |
) |
| Other |
|
1,737 |
|
|
1,534 |
|
13.2 |
|
|
|
3,320 |
|
|
3,278 |
|
1.3 |
|
|
Total non-interest expense |
|
16,219 |
|
|
15,913 |
|
1.9 |
|
|
|
32,917 |
|
|
31,749 |
|
3.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
6,261 |
|
|
7,893 |
|
(20.7 |
) |
|
|
15,349 |
|
|
17,150 |
|
(10.5 |
) |
| Income tax expense |
|
1,274 |
|
|
1,613 |
|
(21.0 |
) |
|
|
3,312 |
|
|
3,600 |
|
(8.0 |
) |
|
Net income |
$ |
4,987 |
|
$ |
6,280 |
|
(20.6 |
) |
|
$ |
12,037 |
|
$ |
13,550 |
|
(11.2 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per
share |
$ |
1.05 |
|
$ |
1.33 |
|
|
|
$ |
2.53 |
|
$ |
2.87 |
|
|
| Cash dividends declared per
share |
$ |
0.31 |
|
$ |
0.31 |
|
|
|
$ |
0.62 |
|
$ |
0.62 |
|
|
| Average basic and diluted shares
outstanding |
|
4,770 |
|
|
4,729 |
|
|
|
|
4,767 |
|
|
4,725 |
|
|
| N/M - Not Meaningful |
|
|
|
|
|
|
|
| Chemung Financial
Corporation |
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
| Consolidated Financial
Highlights (Unaudited) |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
(in thousands, except per share data) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| RESULTS OF
OPERATIONS Interest income |
|
$ |
31,386 |
|
|
$ |
31,219 |
|
|
$ |
30,033 |
|
|
$ |
29,015 |
|
|
$ |
27,796 |
|
|
$ |
62,605 |
|
|
$ |
54,026 |
|
| Interest expense |
|
|
13,625 |
|
|
|
13,130 |
|
|
|
12,135 |
|
|
|
10,998 |
|
|
|
9,201 |
|
|
|
26,755 |
|
|
|
15,484 |
|
| Net interest income |
|
|
17,761 |
|
|
|
18,089 |
|
|
|
17,898 |
|
|
|
18,017 |
|
|
|
18,595 |
|
|
|
35,850 |
|
|
|
38,542 |
|
| Provision (credit) for credit
losses |
|
|
879 |
|
|
|
(2,040 |
) |
|
|
2,300 |
|
|
|
449 |
|
|
|
236 |
|
|
|
(1,161 |
) |
|
|
513 |
|
| Net interest income after
provision for credit losses |
|
|
16,882 |
|
|
|
20,129 |
|
|
|
15,598 |
|
|
|
17,568 |
|
|
|
18,359 |
|
|
|
37,011 |
|
|
|
38,029 |
|
| Non-interest income |
|
|
5,598 |
|
|
|
5,657 |
|
|
|
5,871 |
|
|
|
7,808 |
|
|
|
5,447 |
|
|
|
11,255 |
|
|
|
10,870 |
|
| Non-interest expense |
|
|
16,219 |
|
|
|
16,698 |
|
|
|
16,826 |
|
|
|
15,668 |
|
|
|
15,913 |
|
|
|
32,917 |
|
|
|
31,749 |
|
| Income before income tax
expense |
|
|
6,261 |
|
|
|
9,088 |
|
|
|
4,643 |
|
|
|
9,708 |
|
|
|
7,893 |
|
|
|
15,349 |
|
|
|
17,150 |
|
| Income tax expense |
|
|
1,274 |
|
|
|
2,038 |
|
|
|
841 |
|
|
|
2,060 |
|
|
|
1,613 |
|
|
|
3,312 |
|
|
|
3,600 |
|
| Net income |
|
$ |
4,987 |
|
|
$ |
7,050 |
|
|
$ |
3,802 |
|
|
$ |
7,648 |
|
|
$ |
6,280 |
|
|
$ |
12,037 |
|
|
$ |
13,550 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per
share |
|
$ |
1.05 |
|
|
$ |
1.48 |
|
|
$ |
0.80 |
|
|
$ |
1.61 |
|
|
$ |
1.33 |
|
|
$ |
2.53 |
|
|
$ |
2.87 |
|
| Average basic and diluted shares
outstanding |
|
|
4,770 |
|
|
|
4,764 |
|
|
|
4,743 |
|
|
|
4,736 |
|
|
|
4,729 |
|
|
|
4,767 |
|
|
|
4,725 |
|
| PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
0.73 |
% |
|
|
1.04 |
% |
|
|
0.56 |
% |
|
|
1.14 |
% |
|
|
0.95 |
% |
|
|
0.89 |
% |
|
|
1.03 |
% |
| Return on average equity |
|
|
10.27 |
% |
|
|
14.48 |
% |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
12.37 |
% |
|
|
15.43 |
% |
| Return on average tangible equity
(a) |
|
|
11.56 |
% |
|
|
16.29 |
% |
|
|
9.86 |
% |
|
|
19.22 |
% |
|
|
15.89 |
% |
|
|
13.93 |
% |
|
|
17.60 |
% |
| Efficiency ratio (unadjusted)
(e) |
|
|
69.43 |
% |
|
|
70.32 |
% |
|
|
70.79 |
% |
|
|
60.67 |
% |
|
|
66.19 |
% |
|
|
69.88 |
% |
|
|
64.25 |
% |
| Efficiency ratio (adjusted)
(a) |
|
|
69.19 |
% |
|
|
70.07 |
% |
|
|
70.42 |
% |
|
|
66.55 |
% |
|
|
65.94 |
% |
|
|
69.64 |
% |
|
|
64.01 |
% |
| Non-interest expense to average
assets |
|
|
2.38 |
% |
|
|
2.47 |
% |
|
|
2.48 |
% |
|
|
2.33 |
% |
|
|
2.41 |
% |
|
|
2.42 |
% |
|
|
2.42 |
% |
| Loans to deposits |
|
|
83.26 |
% |
|
|
80.77 |
% |
|
|
81.20 |
% |
|
|
78.05 |
% |
|
|
79.24 |
% |
|
|
83.26 |
% |
|
|
79.24 |
% |
| YIELDS / RATES - Fully
Taxable Equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Yield on loans |
|
|
5.52 |
% |
|
|
5.51 |
% |
|
|
5.31 |
% |
|
|
5.21 |
% |
|
|
5.09 |
% |
|
|
5.51 |
% |
|
|
4.99 |
% |
| Yield on investments |
|
|
2.27 |
% |
|
|
2.35 |
% |
|
|
2.24 |
% |
|
|
2.22 |
% |
|
|
2.22 |
% |
|
|
2.31 |
% |
|
|
2.20 |
% |
| Yield on interest-earning
assets |
|
|
4.69 |
% |
|
|
4.70 |
% |
|
|
4.50 |
% |
|
|
4.40 |
% |
|
|
4.29 |
% |
|
|
4.69 |
% |
|
|
4.20 |
% |
| Cost of interest-bearing
deposits |
|
|
2.86 |
% |
|
|
2.75 |
% |
|
|
2.59 |
% |
|
|
2.44 |
% |
|
|
2.01 |
% |
|
|
2.80 |
% |
|
|
1.68 |
% |
| Cost of borrowings |
|
|
5.04 |
% |
|
|
5.15 |
% |
|
|
5.52 |
% |
|
|
5.25 |
% |
|
|
5.13 |
% |
|
|
5.10 |
% |
|
|
5.01 |
% |
| Cost of interest-bearing
liabilities |
|
|
2.94 |
% |
|
|
2.85 |
% |
|
|
2.68 |
% |
|
|
2.47 |
% |
|
|
2.11 |
% |
|
|
2.90 |
% |
|
|
1.81 |
% |
| Interest rate spread |
|
|
1.75 |
% |
|
|
1.85 |
% |
|
|
1.82 |
% |
|
|
1.93 |
% |
|
|
2.18 |
% |
|
|
1.79 |
% |
|
|
2.39 |
% |
| Net interest margin, fully
taxable equivalent |
|
|
2.66 |
% |
|
|
2.73 |
% |
|
|
2.69 |
% |
|
|
2.73 |
% |
|
|
2.87 |
% |
|
|
2.69 |
% |
|
|
3.00 |
% |
| CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity to total assets at
end of period |
|
|
7.30 |
% |
|
|
7.08 |
% |
|
|
7.20 |
% |
|
|
6.28 |
% |
|
|
6.63 |
% |
|
|
7.30 |
% |
|
|
6.63 |
% |
| Tangible equity to tangible
assets at end of period (a) |
|
|
6.56 |
% |
|
|
6.34 |
% |
|
|
6.45 |
% |
|
|
5.52 |
% |
|
|
5.87 |
% |
|
|
6.56 |
% |
|
|
5.87 |
% |
| Book value per share |
|
$ |
42.17 |
|
|
$ |
41.34 |
|
|
$ |
41.07 |
|
|
$ |
35.90 |
|
|
$ |
37.49 |
|
|
$ |
42.17 |
|
|
$ |
37.49 |
|
| Tangible book value per share
(a) |
|
|
37.59 |
|
|
|
36.77 |
|
|
|
36.48 |
|
|
|
31.29 |
|
|
|
32.88 |
|
|
|
37.59 |
|
|
|
32.88 |
|
| Period-end market value per
share |
|
|
48.00 |
|
|
|
42.48 |
|
|
|
49.80 |
|
|
|
39.61 |
|
|
|
38.41 |
|
|
|
48.00 |
|
|
|
38.41 |
|
| Dividends declared per share |
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.62 |
|
|
|
0.62 |
|
| AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and loans held for sale
(b) |
|
$ |
2,009,823 |
|
|
$ |
1,989,185 |
|
|
$ |
1,956,022 |
|
|
$ |
1,909,100 |
|
|
$ |
1,880,224 |
|
|
$ |
1,999,504 |
|
|
$ |
1,864,853 |
|
| Interest-earning assets |
|
|
2,699,402 |
|
|
|
2,681,059 |
|
|
|
2,654,638 |
|
|
|
2,627,012 |
|
|
|
2,609,893 |
|
|
|
2,690,230 |
|
|
|
2,601,349 |
|
| Total assets |
|
|
2,740,967 |
|
|
|
2,724,391 |
|
|
|
2,688,536 |
|
|
|
2,664,570 |
|
|
|
2,649,399 |
|
|
|
2,732,679 |
|
|
|
2,643,964 |
|
| Deposits |
|
|
2,419,169 |
|
|
|
2,402,215 |
|
|
|
2,397,663 |
|
|
|
2,410,931 |
|
|
|
2,363,847 |
|
|
|
2,410,692 |
|
|
|
2,350,734 |
|
| Total equity |
|
|
195,375 |
|
|
|
195,860 |
|
|
|
174,868 |
|
|
|
179,700 |
|
|
|
180,357 |
|
|
|
195,618 |
|
|
|
177,089 |
|
| Tangible equity (a) |
|
|
173,551 |
|
|
|
174,036 |
|
|
|
153,044 |
|
|
|
157,876 |
|
|
|
158,553 |
|
|
|
173,794 |
|
|
|
155,265 |
|
| ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net charge-offs (recoveries) |
|
$ |
306 |
|
|
$ |
182 |
|
|
$ |
171 |
|
|
$ |
356 |
|
|
$ |
146 |
|
|
$ |
488 |
|
|
$ |
415 |
|
| Non-performing loans (c) |
|
|
8,195 |
|
|
|
7,835 |
|
|
|
10,411 |
|
|
|
6,826 |
|
|
|
7,304 |
|
|
|
8,195 |
|
|
|
7,304 |
|
| Non-performing assets (d) |
|
|
8,872 |
|
|
|
8,394 |
|
|
|
10,738 |
|
|
|
7,055 |
|
|
|
7,471 |
|
|
|
8,872 |
|
|
|
7,471 |
|
| Allowance for credit losses |
|
|
21,031 |
|
|
|
20,471 |
|
|
|
22,517 |
|
|
|
20,252 |
|
|
|
20,172 |
|
|
|
21,031 |
|
|
|
20,172 |
|
| Annualized net charge-offs
(recoveries) to average loans |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.03 |
% |
|
|
0.05 |
% |
|
|
0.04 |
% |
| Non-performing loans to total
loans |
|
|
0.41 |
% |
|
|
0.39 |
% |
|
|
0.53 |
% |
|
|
0.35 |
% |
|
|
0.39 |
% |
|
|
0.41 |
% |
|
|
0.39 |
% |
| Non-performing assets to total
assets |
|
|
0.32 |
% |
|
|
0.30 |
% |
|
|
0.40 |
% |
|
|
0.26 |
% |
|
|
0.28 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
| Allowance for credit losses to
total loans |
|
|
1.05 |
% |
|
|
1.02 |
% |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
| Allowance for credit losses to
non-performing loans |
|
|
256.63 |
% |
|
|
261.28 |
% |
|
|
216.28 |
% |
|
|
296.69 |
% |
|
|
276.17 |
% |
|
|
256.63 |
% |
|
|
276.17 |
% |
(a) See the GAAP to Non-GAAP reconciliations.
(b) Loans and loans held for sale do not reflect the allowance
for credit losses.
(c) Non-performing loans include non-accrual loans only.
(d) Non-performing assets include non-performing loans plus
other real estate owned.
(e) Efficiency ratio (unadjusted) is non-interest expense
divided by the total of net interest income plus non-interest
income.
Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income
Analysis and Rate/Volume Analysis of Net Interest Income
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, 2024 |
|
|
Three Months Ended June 30, 2023 |
|
|
Three Months Ended June 30, 2024 vs. 2023 |
|
| (in thousands) |
|
Average Balance |
|
|
|
Interest |
|
Yield / Rate |
|
|
Average Balance |
|
|
|
Interest |
|
Yield / Rate |
|
|
Total Change |
|
|
|
Due to Volume |
|
|
|
Due to Rate |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial loans |
$ |
1,439,085 |
|
|
$ |
21,005 |
|
5.87 |
% |
$ |
1,288,113 |
|
|
$ |
17,791 |
|
5.54 |
% |
$ |
3,214 |
|
|
$ |
2,131 |
|
|
$ |
1,083 |
|
| Mortgage loans |
|
273,482 |
|
|
|
2,569 |
|
3.76 |
% |
|
284,916 |
|
|
|
2,509 |
|
3.53 |
% |
|
60 |
|
|
|
(102 |
) |
|
|
162 |
|
| Consumer loans |
|
297,256 |
|
|
|
3,996 |
|
5.41 |
% |
|
307,195 |
|
|
|
3,545 |
|
4.63 |
% |
|
451 |
|
|
|
(120 |
) |
|
|
571 |
|
| Taxable securities |
|
620,201 |
|
|
|
3,254 |
|
2.11 |
% |
|
680,020 |
|
|
|
3,633 |
|
2.14 |
% |
|
(379 |
) |
|
|
(327 |
) |
|
|
(52 |
) |
| Tax-exempt securities |
|
39,567 |
|
|
|
276 |
|
2.81 |
% |
|
40,541 |
|
|
|
294 |
|
2.91 |
% |
|
(18 |
) |
|
|
(7 |
) |
|
|
(11 |
) |
| Interest-earning deposits |
|
29,811 |
|
|
|
367 |
|
4.95 |
% |
|
9,108 |
|
|
|
116 |
|
5.11 |
% |
|
251 |
|
|
|
255 |
|
|
|
(4 |
) |
| Total interest-earning
assets |
|
2,699,402 |
|
|
|
31,467 |
|
4.69 |
% |
|
2,609,893 |
|
|
|
27,888 |
|
4.29 |
% |
|
3,579 |
|
|
|
1,830 |
|
|
|
1,749 |
|
|
Non-interest earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
25,054 |
|
|
|
|
|
25,168 |
|
|
|
|
|
|
|
|
|
| Other assets |
|
37,120 |
|
|
|
|
|
34,478 |
|
|
|
|
|
|
|
|
|
| Allowance for credit losses
(3) |
|
(20,609 |
) |
|
|
|
|
(20,140 |
) |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,740,967 |
|
|
|
|
$ |
2,649,399 |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking |
$ |
305,620 |
|
|
$ |
1,391 |
|
1.83 |
% |
$ |
286,573 |
|
|
$ |
723 |
|
1.01 |
% |
$ |
668 |
|
|
$ |
51 |
|
|
$ |
617 |
|
| Savings and money market |
|
854,456 |
|
|
|
4,317 |
|
2.03 |
% |
|
902,741 |
|
|
|
3,050 |
|
1.36 |
% |
|
1,267 |
|
|
|
(171 |
) |
|
|
1,438 |
|
| Time deposits |
|
529,063 |
|
|
|
5,643 |
|
4.29 |
% |
|
346,953 |
|
|
|
2,679 |
|
3.10 |
% |
|
2,964 |
|
|
|
1,712 |
|
|
|
1,252 |
|
| Brokered deposits |
|
101,182 |
|
|
|
1,360 |
|
5.41 |
% |
|
156,196 |
|
|
|
2,017 |
|
5.18 |
% |
|
(657 |
) |
|
|
(743 |
) |
|
|
86 |
|
| FHLBNY overnight advances |
|
10,824 |
|
|
|
151 |
|
5.52 |
% |
|
53,965 |
|
|
|
703 |
|
5.23 |
% |
|
(552 |
) |
|
|
(589 |
) |
|
|
37 |
|
| FRB advances and other
debt |
|
61,809 |
|
|
|
763 |
|
4.96 |
% |
|
3,213 |
|
|
|
29 |
|
3.62 |
% |
|
734 |
|
|
|
719 |
|
|
|
15 |
|
| Total interest-bearing
liabilities |
|
1,862,954 |
|
|
|
13,625 |
|
2.94 |
% |
|
1,749,641 |
|
|
|
9,201 |
|
2.11 |
% |
|
4,424 |
|
|
|
979 |
|
|
|
3,445 |
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand deposits |
|
628,848 |
|
|
|
|
|
671,384 |
|
|
|
|
|
|
|
|
|
| Other liabilities |
|
53,790 |
|
|
|
|
|
48,017 |
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
2,545,592 |
|
|
|
|
|
2,469,042 |
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
195,375 |
|
|
|
|
|
180,357 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,740,967 |
|
|
|
|
$ |
2,649,399 |
|
|
|
|
|
|
|
|
|
| Fully
taxable equivalent net interest income |
|
|
|
17,842 |
|
|
|
|
|
18,687 |
|
|
$ |
(845 |
) |
|
$ |
851 |
|
|
$ |
(1,696 |
) |
| Net interest rate spread
(1) |
|
|
|
1.75 |
% |
|
|
|
2.18 |
% |
|
|
|
|
|
| Net interest margin, fully
taxable equivalent (2) |
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
| Taxable equivalent
adjustment |
|
|
|
(81 |
) |
|
|
|
|
(92 |
) |
|
|
|
|
|
|
| Net interest income |
|
|
$ |
17,761 |
|
|
|
|
$ |
18,595 |
|
|
|
|
|
|
|
(1) Net interest rate spread is the difference in the average
yield on interest-earning assets less the average rate on
interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent
net interest income divided by average interest-earning assets.
(3) The Corporation implemented CECL as of January 1, 2023.
Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income
Analysis and Rate/Volume Analysis of Net Interest Income
(Unaudited)
|
|
|
Six Months Ended June 30, 2024 |
|
|
Six Months Ended June 30, 2023 |
|
|
Six Months Ended June 30, 2024 vs. 2023 |
|
(in thousands) |
|
AverageBalance |
|
|
|
Interest |
|
Yield / Rate |
|
Average Balance |
|
|
Interest |
|
Yield / Rate |
|
Total Change |
|
|
Due to Volume |
|
|
Due to Rate |
|
|
Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
$ |
1,423,018 |
|
|
$ |
41,647 |
|
5.89 |
% |
$ |
1,274,658 |
|
|
$ |
34,376 |
|
5.44 |
% |
$ |
7,271 |
|
|
$ |
4,250 |
|
$ |
3,021 |
|
| Mortgage loans |
|
275,571 |
|
|
|
5,166 |
|
3.75 |
% |
|
285,251 |
|
|
|
4,981 |
|
3.52 |
% |
|
185 |
|
|
|
(160 |
) |
|
345 |
|
| Consumer loans |
|
300,915 |
|
|
|
8,012 |
|
5.35 |
% |
|
304,944 |
|
|
|
6,830 |
|
4.52 |
% |
|
1,182 |
|
|
|
(90 |
) |
|
1,272 |
|
| Taxable securities |
|
626,747 |
|
|
|
6,814 |
|
2.19 |
% |
|
687,508 |
|
|
|
7,218 |
|
2.12 |
% |
|
(404 |
) |
|
|
(644 |
) |
|
240 |
|
| Tax-exempt securities |
|
39,916 |
|
|
|
558 |
|
2.81 |
% |
|
40,654 |
|
|
|
599 |
|
2.97 |
% |
|
(41 |
) |
|
|
(10 |
) |
|
(31 |
) |
| Interest-earning deposits |
|
24,063 |
|
|
|
573 |
|
4.79 |
% |
|
8,334 |
|
|
|
213 |
|
5.15 |
% |
|
360 |
|
|
|
376 |
|
|
(16 |
) |
| Total interest earning
assets |
|
2,690,230 |
|
|
|
62,770 |
|
4.69 |
% |
|
2,601,349 |
|
|
|
54,217 |
|
4.20 |
% |
|
8,553 |
|
|
|
3,722 |
|
|
4,831 |
|
|
Non-interest earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
25,154 |
|
|
|
|
|
25,126 |
|
|
|
|
|
|
|
|
| Other assets |
|
38,893 |
|
|
|
|
|
37,608 |
|
|
|
|
|
|
|
|
| Allowance for credit losses
(3) |
|
(21,598 |
) |
|
|
|
|
(20,119 |
) |
|
|
|
|
|
|
|
|
Total assets |
$ |
2,732,679 |
|
|
|
|
$ |
2,643,964 |
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing checking |
$ |
306,758 |
|
|
$ |
2,725 |
|
1.79 |
% |
$ |
288,819 |
|
|
$ |
996 |
|
0.70 |
% |
$ |
1,729 |
|
|
$ |
66 |
|
$ |
1,663 |
|
| Savings and money market |
|
859,785 |
|
|
|
8,583 |
|
2.01 |
% |
|
904,832 |
|
|
|
4,699 |
|
1.05 |
% |
|
3,884 |
|
|
|
(247 |
) |
|
4,131 |
|
| Time deposits |
|
505,512 |
|
|
|
10,547 |
|
4.20 |
% |
|
334,662 |
|
|
|
4,771 |
|
2.87 |
% |
|
5,776 |
|
|
|
3,028 |
|
|
2,748 |
|
| Brokered deposits |
|
111,295 |
|
|
|
3,001 |
|
5.42 |
% |
|
134,991 |
|
|
|
3,390 |
|
5.06 |
% |
|
(389 |
) |
|
|
(622 |
) |
|
233 |
|
| FHLBNY overnight advances |
|
22,849 |
|
|
|
639 |
|
5.53 |
% |
|
62,286 |
|
|
|
1,570 |
|
5.08 |
% |
|
(931 |
) |
|
|
(1,062 |
) |
|
131 |
|
| FRB advances and other
debt |
|
51,638 |
|
|
|
1,260 |
|
4.91 |
% |
|
3,247 |
|
|
|
58 |
|
3.60 |
% |
|
1,202 |
|
|
|
1,173 |
|
|
29 |
|
| Total interest-bearing
liabilities |
|
1,857,837 |
|
|
|
26,755 |
|
2.90 |
% |
|
1,728,837 |
|
|
|
15,484 |
|
1.81 |
% |
|
11,271 |
|
|
|
2,337 |
|
|
8,934 |
|
|
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Demand deposits |
|
627,342 |
|
|
|
|
|
687,430 |
|
|
|
|
|
|
|
|
| Other liabilities |
|
51,882 |
|
|
|
|
|
50,608 |
|
|
|
|
|
|
|
|
| Total liabilities |
|
2,537,061 |
|
|
|
|
|
2,466,875 |
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
195,618 |
|
|
|
|
|
177,089 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,732,679 |
|
|
|
|
$ |
2,643,964 |
|
|
|
|
|
|
|
|
| Fully
taxable equivalent net interest income |
|
|
|
36,015 |
|
|
|
|
|
38,733 |
|
|
$ |
(2,718 |
) |
|
$ |
1,385 |
|
$ |
(4,103 |
) |
| Net interest rate spread
(1) |
|
|
|
1.79 |
% |
|
|
|
2.39 |
% |
|
|
|
|
| Net interest margin, fully
taxable equivalent (2) |
|
|
|
2.69 |
% |
|
|
|
3.00 |
% |
|
|
|
|
| Taxable equivalent
adjustment |
|
|
|
(165 |
) |
|
|
|
|
|
(191 |
) |
|
|
|
|
|
|
| Net interest income |
|
|
$ |
35,850 |
|
|
|
|
$ |
38,542 |
|
|
|
|
|
|
(1) Net interest rate spread is the difference in the
average yield on interest-earning assets less the average rate on
interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent
net interest income divided by average interest-earning assets.
(3) The Corporation implemented CECL as of January 1, 2023.
Chemung Financial Corporation
GAAP to Non-GAAP Reconciliations (Unaudited)
The Corporation prepares its Consolidated
Financial Statements in accordance with GAAP. See the Corporation’s
unaudited consolidated balance sheets and statements of income
contained within this press release. That presentation provides the
reader with an understanding of the Corporation’s results that can
be tracked consistently from period-to-period and enables a
comparison of the Corporation’s performance with other companies’
GAAP financial statements.
In addition to analyzing the Corporation’s
results on a reported basis, management uses certain non-GAAP
financial measures, because it believes these non-GAAP financial
measures provide information to investors about the underlying
operational performance and trends of the Corporation and,
therefore, facilitate a comparison of the Corporation with the
performance of other companies. Non- GAAP financial measures used
by the Corporation may not be comparable to similarly named
non-GAAP financial measures used by other companies.
The SEC has adopted Regulation G, which applies
to all public disclosures, including earnings releases, made by
registered companies that contain “non-GAAP financial measures.”
Under Regulation G, companies making public disclosures containing
non- GAAP financial measures must also disclose, along with each
non-GAAP financial measure, certain additional information,
including a reconciliation of the non-GAAP financial measure to the
closest comparable GAAP financial measure and a statement of the
Corporation’s reasons for utilizing the non-GAAP financial measure
as part of its financial disclosures. The SEC has exempted from the
definition of “non-GAAP financial measures” certain commonly used
financial measures that are not based on GAAP. When these exempted
measures are included in public disclosures, supplemental
information is not required. The following measures used in this
Report, which are commonly utilized by financial institutions, have
not been specifically exempted by the SEC and may constitute "non-
GAAP financial measures" within the meaning of the SEC's rules,
although we are unable to state with certainty that the SEC would
so regard them.
Fully Taxable Equivalent Net Interest Income and Net Interest
Margin
Net interest income is commonly presented on a
tax-equivalent basis. That is, to the extent that some component of
the institution's net interest income, which is presented on a
before-tax basis, is exempt from taxation (e.g., is received by the
institution as a result of its holdings of state or municipal
obligations), an amount equal to the tax benefit derived from that
component is added to the actual before-tax net interest income
total. This adjustment is considered helpful in comparing one
financial institution's net interest income to that of other
institutions or in analyzing any institution’s net interest income
trend line over time, to correct any analytical distortion that
might otherwise arise from the fact that financial institutions
vary widely in the proportions of their portfolios that are
invested in tax- exempt securities, and that even a single
institution may significantly alter over time the proportion of its
own portfolio that is invested in tax-exempt obligations. Moreover,
net interest income is itself a component of a second financial
measure commonly used by financial institutions, net interest
margin, which is the ratio of net interest income to average
interest-earning assets. For purposes of this measure as well,
fully taxable equivalent net interest income is generally used by
financial institutions, as opposed to actual net interest income,
again to provide a better basis of comparison from institution to
institution and to better demonstrate a single institution’s
performance over time. The Corporation follows these
practices.
| |
|
As of or for the Three Months Ended |
|
As of or for theSix Months
Ended |
|
(in thousands, except ratio data) |
|
June 30, 2024 |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
| NET INTEREST MARGIN -
FULLY TAXABLE EQUIVALENT Net interest income (GAAP) |
|
$ |
17,761 |
|
|
$ |
18,089 |
|
|
$ |
17,898 |
|
|
$ |
18,017 |
|
|
$ |
18,595 |
|
|
$ |
35,850 |
|
|
$ |
38,542 |
|
| Fully taxable equivalent
adjustment |
|
|
81 |
|
|
|
84 |
|
|
|
87 |
|
|
|
87 |
|
|
|
92 |
|
|
|
165 |
|
|
|
191 |
|
| Fully taxable equivalent net
interest income (non-GAAP) |
|
$ |
17,842 |
|
|
$ |
18,173 |
|
|
$ |
17,985 |
|
|
$ |
18,104 |
|
|
$ |
18,687 |
|
|
$ |
36,015 |
|
|
$ |
38,733 |
|
| Average
interest-earning assets (GAAP) |
|
$ |
2,699,402 |
|
|
$ |
2,681,059 |
|
|
$ |
2,654,638 |
|
|
$ |
2,627,012 |
|
|
$ |
2,609,893 |
|
|
$ |
2,690,230 |
|
|
$ |
2,601,349 |
|
| Net interest margin - fully
taxable equivalent (non-GAAP) |
|
|
2.66 |
% |
|
|
2.73 |
% |
|
|
2.69 |
% |
|
|
2.73 |
% |
|
|
2.87 |
% |
|
|
2.69 |
% |
|
|
3.00 |
% |
Efficiency Ratio
The unadjusted efficiency ratio is calculated as
non-interest expense divided by total revenue (net interest income
and non-interest income). The adjusted efficiency ratio is a
non-GAAP financial measure which represents the Corporation’s
ability to turn resources into revenue and is calculated as
non-interest expense divided by total revenue (fully taxable
equivalent net interest income and non- interest income), adjusted
for one-time occurrences and amortization. This measure is
meaningful to the Corporation, as well as investors and analysts,
in assessing the Corporation’s productivity measured by the amount
of revenue generated for each dollar
spent.
| |
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
|
(in thousands, except ratio data) |
|
June 30, 2024 |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
| EFFICIENCY
RATIO Net interest income (GAAP) |
|
$ |
17,761 |
|
|
$ |
18,089 |
|
|
$ |
17,898 |
|
|
$ |
18,017 |
|
|
$ |
18,595 |
|
|
$ |
35,850 |
|
|
$ |
38,542 |
|
| Fully taxable equivalent
adjustment |
|
|
81 |
|
|
|
84 |
|
|
|
87 |
|
|
|
87 |
|
|
|
92 |
|
|
|
165 |
|
|
|
191 |
|
| Fully taxable equivalent net
interest income (non-GAAP) |
|
$ |
17,842 |
|
|
$ |
18,173 |
|
|
$ |
17,985 |
|
|
$ |
18,104 |
|
|
$ |
18,687 |
|
|
$ |
36,015 |
|
|
$ |
38,733 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income
(GAAP) |
|
$ |
5,598 |
|
|
$ |
5,657 |
|
|
$ |
5,871 |
|
|
$ |
7,808 |
|
|
$ |
5,447 |
|
|
$ |
11,255 |
|
|
$ |
10,870 |
|
| Less: net (gains) losses on
security transactions |
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Less: recognition of employee
retention tax credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,370 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Adjusted non-interest income
(non-GAAP) |
|
$ |
5,598 |
|
|
$ |
5,657 |
|
|
$ |
5,910 |
|
|
$ |
5,438 |
|
|
$ |
5,447 |
|
|
$ |
11,255 |
|
|
$ |
10,870 |
|
| Non-interest expense
(GAAP) |
|
$ |
16,219 |
|
|
$ |
16,698 |
|
|
$ |
16,826 |
|
|
$ |
15,668 |
|
|
$ |
15,913 |
|
|
$ |
32,917 |
|
|
$ |
31,749 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio
(unadjusted) |
|
|
69.43 |
% |
|
|
70.32 |
% |
|
|
70.79 |
% |
|
|
60.67 |
% |
|
|
66.19 |
% |
|
|
69.88 |
% |
|
|
64.25 |
% |
| Efficiency ratio
(adjusted) |
|
|
69.19 |
% |
|
|
70.07 |
% |
|
|
70.42 |
% |
|
|
66.55 |
% |
|
|
65.94 |
% |
|
|
69.64 |
% |
|
|
64.01 |
% |
Tangible Equity and Tangible Assets
(Period-End)
Tangible equity, tangible assets, and tangible
book value per share are each non-GAAP financial measures. Tangible
equity represents the Corporation’s stockholders’ equity, less
goodwill and intangible assets. Tangible assets represents the
Corporation’s total assets, less goodwill and other intangible
assets. Tangible book value per share represents the Corporation’s
tangible equity divided by common shares at period-end. These
measures are meaningful to the Corporation, as well as investors
and analysts, in assessing the Corporation’s use of equity.
| |
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
| (in
thousands, except per share and ratio data) |
|
June 30,2024 |
|
March 31,2024 |
|
Dec. 31,2023 |
|
Sept. 30,2023 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
| TANGIBLE EQUITY AND
TANGIBLE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (PERIOD
END) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders' equity
(GAAP) |
|
$ |
201,222 |
|
|
$ |
197,128 |
|
|
$ |
195,241 |
|
|
$ |
170,064 |
|
|
$ |
177,426 |
|
|
$ |
201,222 |
|
|
$ |
177,426 |
|
| Less: intangible assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
| Tangible equity
(non-GAAP) |
|
$ |
179,398 |
|
|
$ |
175,304 |
|
|
$ |
173,417 |
|
|
$ |
148,240 |
|
|
$ |
155,602 |
|
|
$ |
179,398 |
|
|
$ |
155,602 |
|
| Total
assets (GAAP) |
|
$ |
2,755,813 |
|
|
$ |
2,784,890 |
|
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
|
$ |
2,755,813 |
|
|
$ |
2,674,673 |
|
| Less: intangible assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
| Tangible assets
(non-GAAP) |
|
$ |
2,733,989 |
|
|
$ |
2,763,066 |
|
|
$ |
2,688,705 |
|
|
$ |
2,686,010 |
|
|
$ |
2,652,849 |
|
|
$ |
2,733,989 |
|
|
$ |
2,652,849 |
|
| Total
equity to total assets at end of period (GAAP) |
|
|
7.30 |
% |
|
|
7.08 |
% |
|
|
7.20 |
% |
|
|
6.28 |
% |
|
|
6.63 |
% |
|
|
7.30 |
% |
|
|
6.63 |
% |
| Book value per share
(GAAP) |
|
$ |
42.17 |
|
|
$ |
41.34 |
|
|
$ |
41.07 |
|
|
$ |
35.90 |
|
|
$ |
37.49 |
|
|
$ |
42.17 |
|
|
$ |
37.49 |
|
| Tangible equity to tangible
assets at end of period (non- GAAP) |
|
|
6.56 |
% |
|
|
6.34 |
% |
|
|
6.45 |
% |
|
|
5.52 |
% |
|
|
5.87 |
% |
|
|
6.56 |
% |
|
|
5.87 |
% |
| Tangible book value per share
(non-GAAP) |
|
|
$ |
37.59 |
|
|
|
$ |
36.77 |
|
|
|
$ |
36.48 |
|
|
|
$ |
31.29 |
|
|
|
$ |
32.88 |
|
|
|
$ |
37.59 |
|
|
|
$ |
32.88 |
|
Tangible Equity (Average)
Average tangible equity and return on average
tangible equity are each non-GAAP financial measures. Average
tangible equity represents the Corporation’s average stockholders’
equity, less average goodwill and intangible assets for the period.
Return on average tangible equity measures the Corporation’s
earnings as a percentage of average tangible equity. These measures
are meaningful to the Corporation, as well as investors and
analysts, in assessing the Corporation’s use of
equity.
|
|
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
|
(in thousands, except ratio data) |
|
June 30, 2024 |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
TANGIBLE EQUITY (AVERAGE) Total average
shareholders' equity (GAAP) |
|
$ |
195,375 |
|
|
$ |
195,860 |
|
|
$ |
174,868 |
|
|
$ |
179,700 |
|
|
$ |
180,357 |
|
|
$ |
195,618 |
|
|
$ |
177,089 |
|
| Less:
average intangible assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
| Average
tangible equity (non-GAAP) |
|
$ |
173,551 |
|
|
$ |
174,036 |
|
|
$ |
153,044 |
|
|
$ |
157,876 |
|
|
$ |
158,533 |
|
|
$ |
173,794 |
|
|
$ |
155,265 |
|
|
Return on average equity (GAAP) |
|
|
10.27 |
% |
|
|
14.48 |
% |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
12.37 |
% |
|
|
15.43 |
% |
| Return
on average tangible equity (non-GAAP) |
|
|
11.56 |
% |
|
|
16.29 |
% |
|
|
9.86 |
% |
|
|
19.22 |
% |
|
|
15.89 |
% |
|
|
13.93 |
% |
|
|
17.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for Certain Items of Income or
Expense
In addition to disclosures of certain GAAP
financial measures, including net income, EPS, ROA, and ROE, we may
also provide comparative disclosures that adjust these GAAP
financial measures for a particular period by removing from the
calculation thereof the impact of certain transactions or other
material items of income or expense occurring during the period,
including certain nonrecurring items. The Corporation believes that
the resulting non-GAAP financial measures may improve an
understanding of its results of operations by separating out any
such transactions or items that may have had a disproportionate
positive or negative impact on the Corporation’s financial results
during the particular period in question. In the Corporation’s
presentation of any such non-GAAP (adjusted) financial measures not
specifically discussed in the preceding paragraphs, the Corporation
supplies the supplemental financial information and explanations
required under Regulation G.
| |
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
| (in
thousands, except per share and ratio data) |
|
June 30, 2024 |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
NON-GAAP NET INCOME Reported net income
(GAAP) |
|
$ |
4,987 |
|
|
$ |
7,050 |
|
|
$ |
3,802 |
|
|
$ |
7,648 |
|
|
$ |
6,280 |
|
|
$ |
12,037 |
|
|
$ |
13,550 |
|
| Net (gains) losses on security
transactions (net of tax) |
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Recognition of employee
retention tax credit (net of tax) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,873 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net income (non-GAAP) |
|
$ |
4,987 |
|
|
$ |
7,050 |
|
|
$ |
3,831 |
|
|
$ |
5,775 |
|
|
$ |
6,280 |
|
|
$ |
12,037 |
|
|
$ |
13,550 |
|
|
Average basic and diluted shares outstanding |
|
|
4,770 |
|
|
|
4,764 |
|
|
|
4,743 |
|
|
|
4,736 |
|
|
|
4,729 |
|
|
|
4,767 |
|
|
|
4,725 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported basic and diluted
earnings per share (GAAP) |
|
$ |
1.05 |
|
|
$ |
1.48 |
|
|
$ |
0.80 |
|
|
$ |
1.61 |
|
|
$ |
1.33 |
|
|
$ |
2.53 |
|
|
$ |
2.87 |
|
| Reported return on average
assets (GAAP) |
|
|
0.73 |
% |
|
|
1.04 |
% |
|
|
0.56 |
% |
|
|
1.14 |
% |
|
|
0.95 |
% |
|
|
0.89 |
% |
|
|
1.03 |
% |
| Reported return on average
equity (GAAP) |
|
|
10.27 |
% |
|
|
14.48 |
% |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
12.37 |
% |
|
|
15.43 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per
share (non-GAAP) |
|
$ |
1.05 |
|
|
$ |
1.48 |
|
|
$ |
0.81 |
|
|
$ |
1.21 |
|
|
$ |
1.33 |
|
|
$ |
2.53 |
|
|
$ |
2.87 |
|
| Return on average assets
(non-GAAP) |
|
|
0.73 |
% |
|
|
1.04 |
% |
|
|
0.57 |
% |
|
|
0.86 |
% |
|
|
0.95 |
% |
|
|
0.89 |
% |
|
|
1.03 |
% |
| Return on average equity
(non-GAAP) |
|
|
10.27 |
% |
|
|
14.48 |
% |
|
|
8.69 |
% |
|
|
12.75 |
% |
|
|
13.97 |
% |
|
|
12.37 |
% |
|
|
15.43 |
% |
Category: Financial
Source: Chemung Financial Corp
For further information
contact:Dale M. McKim, III, EVP and CFO
dmckim@chemungcanal.com Phone: 607-737-3714
Grafico Azioni Chemung Financial (NASDAQ:CHMG)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Chemung Financial (NASDAQ:CHMG)
Storico
Da Dic 2023 a Dic 2024
