Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG),
the parent company of Chemung Canal Trust Company (the “Bank”),
today reported net income of $25.0 million, or $5.28 per share, for
the year ended December 31, 2023, compared to $28.8 million, or
$6.13 per share, for the year ended December 31, 2022. Net income
was $3.8 million, or $0.80 per share, for the fourth quarter of
2023, compared to $7.6 million, or $1.61 per share, for the third
quarter of 2023, and $7.4 million, or $1.58 per share, for the
fourth quarter of 2022.
"Our fourth quarter performance was challenged
by certain credit related events that we do not believe are
indicative of portfolio quality. Overall, our team delivered
another strong year of financial results,” said Anders M. Tomson,
President and CEO of the Corporation. "Net interest margins
continue to stabilize in light of improved loan pricing and
moderation of pressures on funding costs. Looking into 2024, we are
committed to driving revenue growth while prudently managing our
cost base," Tomson further stated.
Dale McKim III, Executive Vice President and CFO
of the Corporation added, "We continue to focus on expense
management and efficiencies throughout the organization, and have
been diligent in pursuing new opportunities. In the fourth quarter,
we undertook strategic realignments that will position us for
improved long-term performance."
Fourth Quarter
Highlights:
- Tangible common equity to tangible assets improved 94 basis
points, from 5.51% to 6.45%.1 2
- Commercial loan growth was 11.1% for
the fiscal year. 1
- Chemung Canal Trust Company
celebrated its 190th anniversary in 2023.
- Share value appreciated by $3.93 to $49.80 at December 31,
2023, an increase of 8.6% from December 31, 2022.
- Dividends declared during the fourth quarter 2023 were $0.31
per share.
1 Balance sheet comparisons are calculated as of
December 31, 2023 versus December 31, 2022.
2 See the GAAP to Non-GAAP reconciliations. The
total equity to total assets ratio was 7.20% as of December 31,
2023 compared to 6.29% as of December 31, 2022.
2023 vs
2022
Net Interest
Income:
Net interest income for the year ended December
31, 2023 totaled $74.5 million compared to $74.2 million for the
prior year, an increase of $0.3 million, or 0.4%. This increase was
primarily driven by increases of $29.2 million in interest income
on loans, including fees, and $2.2 million in interest and dividend
income on taxable securities, offset by increases of $29.3 million
in interest expense on deposits, and $2.1 million in interest
expense on borrowed funds. The Corporation has experienced a total
deposit beta of 33% during the most recent interest rate cycle,
anchored to the period ended December 31, 2021.1
An increase of 99 basis points in the average
yield on loans and a $252.4 million increase in average loan
balances were primary drivers of the increase in interest income on
loans, including fees. The increases were primarily concentrated in
the commercial loan portfolio, as well as the indirect auto segment
of the consumer loan portfolio. The increase in interest and
dividend income on taxable securities was due primarily to a 48
basis points increase in the average yield on taxable securities,
due to an increase in interest rates on existing variable rate
securities, despite a decrease of $63.6 million in average balances
of taxable securities, primarily due to paydowns on mortgage-backed
and SBA pooled-loan securities.
The increase in interest expense on deposits was
due primarily to a 167 basis points increase in average rates paid
on interest-bearing deposits, which included brokered deposits, and
deposit campaigns, primarily relating to time deposits. The
increase in interest expense on borrowed funds was due primarily to
an increase in interest rates of 266 basis points on overnight
FHLBNY borrowings, and a $29.1 million increase in average balances
on borrowed funds, when compared to the prior year.
Fully taxable equivalent net interest margin was
2.85% for the year ended December 31, 2023, compared to 3.05% for
the prior year. Average interest-earning assets increased $177.0
million in 2023, compared to the prior year. The average yield on
interest-earning assets increased 98 basis points while the average
cost of interest-bearing liabilities increased 173 basis points in
2023, when compared to the prior year, both due to the rising
interest rate environment over the past two years.
Provision for
Credit Losses:
Provision for credit losses for the year ended
December 31, 2023 was $3.3 million compared to a credit of $0.6
million for the prior year, an increase of $3.9 million. The
increase was primarily due to a $0.9 million specific allocation on
a commercial real estate relationship during 2023, and the impact
on the allowance for credit losses methodology of the adoption of
CECL as of January 1, 2023.
Increased loan volume, and changes to model
inputs, including a decline in the prepayment rates of many of the
model's loan pools, drove the increase. Declining prepayments
impact the application of discounted cash flows by increasing the
principal subject to discounting in later periods. Additionally,
management increased the qualitative adjustment rate applied to the
consumer loan portfolio, considering changes in economic conditions
that may not be reflected in the FOMC's forecasted data points, but
may adversely impact consumers' financial strength. These increases
were offset by relatively favorable changes in the FOMC's
forecasted data points. Between December 2022 & December 2023,
the FOMC's unemployment projection for year-end 2024 decreased from
4.6% to 4.1%, while the FOMC's projection for year-end U.S. GDP
annual growth rate decreased from 1.6% to 1.4%. However, the
year-end 2023 projected GDP growth rate, which impacted the model
throughout the year, improved from 0.5% to 2.6% during this
period.
Non-Interest
Income:
Non-interest income for the year ended December
31, 2023 was $24.5 million compared to $21.4 million for the prior
year, an increase of $3.1 million, or 14.5%. The increase was due
primarily to increases of $2.4 million in other non- interest
income, $0.5 million in the change in fair value of equity
investments, and $0.2 million in wealth management group fee
income.
The increase in other non-interest income was
primarily due to the $2.4 million recognition of an employee
retention tax credit (ERTC) in the third quarter of 2023. The
increase in the change in fair value of equity investments was
primarily due to an improvement in the market value of assets held
for the Corporation's deferred compensation plan. The increase in
wealth management group fee income was primarily attributed to an
increase in the market value of total assets under management or
administration, due to improved conditions in equity markets in
2023, compared to conditions in 2022.
Non-Interest
Expense:Non-interest expense for the year ended
December 31, 2023 was $64.2 million compared to $59.3 million in
the prior year, an increase of $4.9 million, or 8.4%. This increase
was primarily driven by increases in salaries and wages of $1.8
million, other components of periodic pension and postretirement
benefits of $1.0 million, data processing of $0.9 million, FDIC
insurance of $0.8 million, and other non-interest expense of $0.8
million, offset by a decrease of $0.3 million in pension and other
employee benefits.
The increase in salaries and wages was primarily
attributable to an increase in the market value of the
Corporation's deferred compensation plan and base salary increases,
while the increase in other components of net periodic pension and
postretirement benefits was attributable to actuarial revisions to
the Corporation's pension plans. The increase in data processing
was primarily attributable to ongoing enhancements to cybersecurity
capabilities, the outsourcing of debit card dispute processing to a
third-party vendor, and an increase in wealth management software
expenses. FDIC insurance expense increased due to an increase in
the assessment rate effective January 1, 2023, while the increase
in other non-interest expense was primarily attributable to the
recapture of $0.2 million in accrued telecommunication expenses
during the prior year, as well as an increase in non-loan
charge-offs during the current year. Pension and other employee
benefits decreased primarily due to a decrease in employee
healthcare expenses.
Income Tax
Expense:
Income tax expense for the year ended December
31, 2023 was $6.5 million compared with $8.1 million for the prior
year, a decrease of $1.6 million, or 19.8%. The effective tax rate
for the year ended December 31, 2023 decreased to 20.6% compared to
22.0% for the prior year. The decrease in income tax expense was
primarily due to a decrease in pretax income.
1 Anchored period represents the quarter ended
December 31, 2021, and the total deposit beta is calculated using
the change in the Federal Funds Effective Rate between December 31,
2021 and December 31, 2023.
4th Quarter
2023 vs 3rd
Quarter 2023
Net Interest
Income:
Net interest income for the fourth quarter of
2023 totaled $17.9 million compared to $18.0 million for the prior
quarter, a decrease of $0.1 million, or 0.6%, driven primarily by
increases of $0.6 million in interest expense on deposits and $0.5
million in interest expense on borrowed funds, offset by an
increase of $1.1 million in interest income on loans, including
fees.
An increase of 15 basis points in the average
rate paid on interest-bearing deposits, including brokered
deposits, was primarily responsible for the increase in interest
expense on deposits. This was a deceleration of 28 basis points
when compared to the 43 basis points increase between the second
and third quarters of 2023, and was the smallest increase since the
1 basis point increase between the first and second quarters of
2022, effectively the beginning of the current rising interest rate
cycle. Competitive pressures on pricing and expectations among
existing clients continued to meaningfully impact total deposit
costs during the current period. The cost of customer time deposits
increased 50 basis points during the current quarter, compared to
the prior quarter, and comprised 19.3% of total deposits as of
December 31, 2023, compared to 16.8% at the end of the prior
quarter. The increase in customer time deposit balances was
primarily due to the continuation of CD campaigns, as well as an
increase in public fund time deposits.
The increase in interest expense on borrowed
funds was due primarily to a $35.5 million increase in the average
balance of FHLBNY borrowings, and a 10 basis points increase in the
average rate paid on FHLBNY borrowings. The Corporation increased
its use of overnight borrowings during the quarter, reducing its
reliance on brokered deposits for operational flexibility, while
taking advantage of higher municipal deposits at the beginning of
the quarter.
An increase in interest income on loans,
including fees, was due primarily to a $50.1 million increase in
average commercial loan balances, when compared to the prior
quarter, and a 10 basis points increase in the average yield on
total loans, again reflecting increases concentrated in the
commercial portfolio, due to improved pricing on originations, when
compared to the prior quarter. Residential mortgage average
balances decreased $3.2 million in the current quarter, and
consumer loans were flat, when compared to the prior quarter.
Fully taxable equivalent net interest margin was
2.69% in the current quarter compared to 2.73% in the prior
quarter. Net interest margin compression slowed in the current
period, declining only 4 basis points, when compared to the 14
basis points of compression experienced between the second and
third quarters of 2023. Balances of average interest- earning
assets increased $27.6 million in the current quarter, when
compared to the prior quarter, and the average yield on
interest-earning assets increased 10 basis points to 4.50%, when
compared to the prior quarter. For the current quarter, the average
cost of interest-bearing liabilities increased 21 basis points to
2.68%, compared to the prior quarter. The 21 basis points increase
experienced in the current quarter ended a period of five
consecutive quarter-over-quarter increases of at least 25 basis
points, extending to the beginning of the current rising interest
rate cycle beginning at end of the first quarter of 2022.
Provision for
Credit Losses:
Provision for credit losses increased $1.9
million during the current quarter, when compared to the prior
quarter. The increase in provision for credit losses was
attributable to a $0.9 million specific allocation on a commercial
real estate relationship, and changes in variables used in the
Corporation's allowance for credit losses model. Changes included a
decrease in prepayment rates, as well as smaller changes in the
application of FOMC forecasted data points. The 2023 year-end
forecasted unemployment rate of 3.8% was 0.3% lower than the 4.1%
2024 year-end figure, benefiting the model in the prior
quarter.
Non-Interest
Income:
Non-interest income for the fourth quarter of
2023 was $5.9 million, compared to $7.8 million for the third
quarter of 2023, a decrease of $1.9 million or 24.4%. This was
driven primarily by a decrease of $2.4 million in other
non-interest income, due to the recognition of the employee
retention tax credit (ERTC) which the Corporation recognized during
the prior quarter. Excluding the impact of the ERTC, non-interest
income increased $0.4 million, primarily attributable to increases
of $0.3 million in the change in fair value of equity investments
and $0.2 million in wealth management group fee income. The
increase in the change in fair value of equity investments was
attributable to an increase in the market value of assets held for
the Corporation's deferred compensation plan. The increase in
wealth management group fee income was primarily attributable to
fee income recognized on final distributions of multiple larger
trust arrangements.
Non-Interest
Expense:
Non-interest expense for the fourth quarter of
2023 was $16.8 million, compared to $15.7 million for the prior
quarter, an increase of $1.1 million, or 7.3%. The increase was
driven primarily by increases of $0.7 million in other non-interest
expense and $0.3 million in salaries and wages.
The increase in other non-interest expense was
primarily attributable to an increase in charitable donations,
while the increase in salaries and wages was primarily attributable
to an increase in the market value of the Corporation's deferred
compensation plan and severance charges related to the realignment
of certain back office functions.
Income Tax
Expense:
Income tax expense for the fourth quarter of
2023 was $0.8 million compared to $2.1 million for the prior
quarter, a decrease of $1.2 million. The effective tax rate for the
current quarter decreased to 18.1% from 21.2% in the prior quarter.
The decrease in income tax expense was primarily attributable to a
decrease in pretax income.
4th Quarter
2023 vs 4th
Quarter 2022
Net Interest Income:
Net interest income for the fourth quarter of
2023 totaled $17.9 million compared to $20.9 million for the same
period in the prior year, a decrease of $3.0 million, or 14.2%,
driven primarily by increases of $8.0 million in interest expense
on deposits and $0.5 million in interest expense paid on borrowed
funds, offset by an increase of $5.6 million in interest income on
loans, including fees, when compared to the same period in the
prior year. Interest income on taxable securities was flat between
the fourth quarters of 2022 and 2023.
The increase in interest expense on deposits was
due primarily to a 177 basis points increase in the average rate
paid on interest-bearing deposits, which included brokered
deposits, and an increase of $92.2 million in the average balance
of customer interest-bearing deposits. The average balance of
brokered deposits increased $41.8 million between the fourth
quarters of 2022 and 2023. This increase was the result of a shift
in the deposit mix towards higher cost accounts, when compared to
the same period in the prior year, due to the rising interest rate
environment, and pricing expectations amongst customers. The
increase in interest expense on borrowed funds was due primarily to
an increase in interest rates, and a $31.2 million increase in the
average balance of FHLBNY borrowings in the current quarter, when
compared to the same period in the prior year.
Interest income on loans, including fees,
increased primarily due to a $168.9 million increase in average
loan balances, concentrated primarily in the commercial portfolio,
when compared to the same period in the prior year. Pricing of
commercial originations between the fourth quarters of 2022 and
2023 had a favorable impact on interest income on loans, and the
Corporation anticipates it will continue to benefit from these new
loans, even as the current rising interest rate cycle likely ends.
The average yield on the commercial loan portfolio increased 76
basis points between these periods.
Average consumer loans, supported by growth in
the indirect auto portfolio, increased $29.7 million, while the
average yield on consumer loans increased 100 basis points,
primarily due to originations of higher rate indirect auto loans,
and increases in interest rates on variable rate home equity loans.
Average balances of mortgage loans decreased $5.3 million during
the fourth quarter of 2023, when compared to the same period in the
prior year, primarily due to adverse conditions for prospective
borrowers in the residential real estate market, while the yield on
mortgage loans increased 21 basis points between these periods.
Interest and dividend income on taxable
securities was comparable between the fourth quarters of 2022 and
2023. During this period, the average yield on taxable securities
increased 17 basis points, due to an increase in interest rates on
variable rate securities. This increase was offset by a decrease of
$58.7 million in the average balance of taxable securities, when
compared to the same period in the prior year, due to paydowns on
securities held in the portfolio between the fourth quarter of 2022
and the fourth quarter of 2023.
Fully taxable equivalent net interest margin was
2.69% for the fourth quarter 2023, compared to 3.26% for the same
period in the prior year. The Corporation exhibited a greater level
of liability sensitivity in the current year, after reaching an
inflection point at the end of 2022. Throughout the prior year,
liability repricing lagged asset repricing, leading to a period of
net interest margin expansion that ended in the fourth quarter of
the prior year.
Average interest-earning assets increased $103.8
million for the three months ended December 31, 2023, compared to
the same period in the prior year. The average yield on
interest-earning assets increased 68 basis points to 4.50%, while
the average cost of interest-bearing liabilities increased 180
basis points to 2.68%, for the three months ended December 31,
2023, when compared to the same period in the prior year, due to
the rising interest rate environment, as well as a shift in the
overall deposit mix to higher-cost account types, compared to the
same period in the prior year.
Provision for
Credit Losses:
Provision for credit losses increased $1.2
million for the three months ended December 31, 2023, compared to
the same period in the prior year. The increase in the provision
was primarily attributable to a $0.9 million specific allocation
relating to a commercial real estate relationship, as well as
changes in the variables being applied to the allowance for credit
losses model, including prepayment rates and changes in economic
forecasted data. Provisioning in the fourth quarter of 2022 was
attributable to loan growth, as well as qualitative provisioning
relating to loan concentrations and anticipated deterioration in
national economic conditions.
Non-Interest
Income:
Non-interest income for the fourth quarter of
2023 was $5.9 million compared to $5.4 million for the same period
in the prior year, an increase of $0.5 million, or 8.4%. The
increase was primarily driven by an increase of $0.3 million in
wealth management group fee income. The increase in wealth
management group fee income was primarily attributable to an
increase in assets under management in the fourth quarter of the
current year, compared to the same period in the prior year, as
well as income recognized attributable to final distributions on
multiple larger trust arrangements.
Non-Interest
Expense:
Non-interest expense for the fourth quarter of
2023 was $16.8 million compared to $15.7 million for the same
period in the prior year, an increase of $1.1 million, or 7.2%. The
increase can be mostly attributed to increases of $0.6 million in
salaries and wages, $0.4 million in other non-interest expense,
$0.3 million in other components of net periodic pension and post
retirement benefits, and $0.3 million in data processing, offset by
a decrease of $0.4 million in loan expense.
Salaries and wages increased primarily due to
base salary and wage increases, an increase in expense related to
the Corporation's award program during the current quarter, when
compared to the same period in the prior year, and severance
charges related to the realignment of certain back office
functions, in the fourth quarter of 2023. The increase in other
non-interest expense was primarily attributable to increases in
non-loan charge offs. Other components of net periodic pension and
post retirement benefits increased primarily due to actuarial
revisions. Data processing expense increased primarily due to a
vendor credit received on wealth management software during the
fourth quarter of the prior year. Loan expense decreased primarily
due to a decrease in the volume of indirect auto originations,
compared to the same period in the prior year.
Income Tax
Expense:
Income tax expense for the fourth quarter of
2023 decreased to $0.8 million compared to $2.1 million in the
fourth quarter of 2022. The effective tax rate for the current
period was 18.1%, compared to 21.8% for the same period in the
prior year. The decrease in income tax expense was primarily
attributable to a decrease in pretax income in the current period,
compared to the same period in the prior year.
Asset
Quality
Non-performing loans totaled $10.4 million as of
December 31, 2023, or 0.53% of total loans, compared to $8.2
million, or 0.45% of total loans as of December 31, 2022. The
increase in non-performing loans was primarily attributable to the
addition of one commercial real estate relationship, totaling $3.1
million, comprised of a well-collateralized $2.2 million
participation in a construction project and a $0.9 million credit
secured by a negative pledge on real property, for which a full
reserve allocation was made. This increase was partially offset by
the removal of a large commercial and industrial loan from
non-performing status, as well as paydown activity on existing
non-performing loans. Non-performing assets, which are comprised of
non-performing loans and other real estate owned, were $10.7
million, or 0.40% of total assets, as of December 31, 2023,
compared to $8.4 million, or 0.32% of total assets, as of December
31, 2022. The increase in non- performing assets can be attributed
to the increase in non-performing loans. The Corporation
experienced a modest increase in delinquent loans in its consumer
lending portfolio, consistent with seasonal trends, although
overall delinquencies remain at or below historically normal
levels. Management continues to monitor the credit quality of
individual relationships closely.
Management performs an ongoing assessment of the
adequacy of the allowance for credit losses based on its current
expected credit losses (CECL) methodology, which includes loans
individually analyzed, as well as loans analyzed on a pooled basis.
The Corporation's methodology estimates the lifetime losses in its
loan portfolio by utilizing an expected discounted cash flow
approach. Based on FOMC forecasted data points, the model is
supplemented by qualitative considerations including relevant
economic influences, portfolio concentrations, and other external
factors. The Corporation adopted the CECL accounting standard on
January 1, 2023.
The allowance for credit losses was $22.5
million as of December 31, 2023, and the allowance for loan losses
was $19.7 million as of December 31, 2022. The allowance for credit
losses on unfunded commitments, a component of other liabilities,
was $0.9 million as of December 31, 2023. The increase in the
allowance for credit losses was driven by a $1.5 million adjustment
recognized upon adoption of ASU 2016-13, Financial
Instruments-Credit Losses (Topic 326), the specific allocation of
$0.9 million on an aforementioned commercial real estate
relationship, provisioning related to loan growth, changes in model
variables, and qualitative considerations. The $1.5 million
one-time implementation adjustment was comprised of $1.1 million
reflecting the establishment of an allowance for credit losses on
unfunded commitments, and a $0.4 million increase in the allowance
for credit losses, reflecting the change in methodology.
During the fourth quarter of 2023, in addition
to the $0.9 million specific allocation made in relation to a
commercial real estate relationship, the Corporation allocated
additional amounts to its allowance for credit losses in accordance
with its CECL methodology. One of the inputs utilized by the model
is an assumed prepayment rate, calculated at the pool level, and
based on a three-year rolling historical average of the
Corporation's own prepayment experience. During 2023, prepayment
levels declined across most pools of loans, but was especially
prevalent amongst residential mortgages. Prepayment speeds had a
meaningful impact on the allowance during the fourth quarter.
Prepayment assumptions and modeled present value of cash flows have
a direct relationship. As prepayment assumptions decline, the
modeled present value of cash flows declines, increasing the
assumed allowance requirements. Additionally, loan growth, and to a
lesser degree, changes in FOMC economic forecasted data points,
increased reserve requirements during the fourth quarter.
The allowance for credit losses was 216.28% of
non-performing loans as of December 31, 2023, and the ratio of the
allowance for credit losses to loans was 1.14% as of December 31,
2023. The allowance for loan losses to non-performing loans was
240.39% as of December 31, 2022, and the ratio of the allowance for
loan losses to total loans was 1.07% as of December 31, 2022.
Balance Sheet
Activity
Total assets were $2.711 billion as of December
31, 2023 compared to $2.646 billion as of December 31, 2022, an
increase of $65.0 million, or 2.5%. The increase can be mostly
attributed to an increase of $143.2 million in loans, net of
deferred origination fees and costs. This increase was offset by
decreases of $52.9 million in total investment securities, $19.0
million in cash and cash equivalents, $1.3 million in accrued
interest receivable and other assets, and an increase of $2.9
million in the allowance for credit losses.
The increase in loans, net of deferred
origination fees and costs, was concentrated in the commercial loan
portfolio, which increased $138.1 million, or 11.1%. Commercial
demand for financing continues to be strong across the
Corporation's footprint, led by commercial real estate activity in
the Albany, NY metro area. Consumer loans increased $12.8 million,
or 4.3%, primarily driven by strong origination activity in the
indirect auto segment. These increases were offset by a decrease in
the residential mortgage portfolio of $7.7 million, or 2.7%, due to
new loans being sold into the secondary market, as well as
continued constrained market conditions for residential real estate
throughout the year, suppressing demand.
Total investment securities decreased primarily
due to a decrease of $48.6 million in securities available for
sale. Net paydowns on securities available for sale during the year
totaled $59.8 million, primarily attributable to paydowns on
mortgage-backed securities and SBA pooled-loan securities,
partially offset by an increase in the market value of $11.5
million, due to favorable changes in fixed income market valuations
during the year. Securities held to maturity decreased $1.6 million
due to the sale of securities held by Chemung Risk Management,
relating to its dissolution, and FHLB stock decreased $2.7 million
due to lower FHLBNY overnight advance borrowing activity as of the
end of the current period, when compared to the prior year-end.
The decrease in cash and cash equivalents was
primarily due to an increase in loans, net of deferred origination
fees and costs, and a decrease in advances and other debt, offset
by an increase in deposits, and cash flow from the available for
sale securities portfolio. The decrease in accrued interest
receivable and other assets was primarily due to a decrease in
interest rate swap assets of $2.6 million, due to a decrease in the
market value of swaps, and offset by an increase in accrued
interest receivable of $1.2 million, primarily on loans.
Total liabilities were $2.515 billion as of
December 31, 2023 compared to $2.479 billion as of December 31,
2022, an increase of $36.1 million, or 1.5%. The increase in total
liabilities can primarily be attributed to an increase of $102.2
million in deposits, offset by decreases of $63.9 million in FHLBNY
overnight advances and $1.1 million in accrued interest payable and
other liabilities
Total deposits increased 4.4% during 2023,
primarily due to an increase of $209.9 million in total time
deposits, or 52.2%, which includes customer time deposits and
brokered deposits. Customer time deposits increased $140.5 million,
while brokered deposits increased $69.4 million. Additionally,
interest-bearing demand deposits increased $19.5 million. These
increases were offset by decreases of $80.2 million in non-interest
bearing demand deposits, $29.9 million in savings deposits, and
$17.1 million in money market deposits. Non-interest bearing
deposits comprised 26.9% and 31.5% of total deposits as of December
31, 2023 and December 31, 2022.
The decrease in FHLBNY overnight advances was
due to a decrease in overnight borrowing activity compared to the
prior year. The decrease in accrued interest payable and other
liabilities was primarily due to a decrease in the interest rate
swap liability of $2.6 million due to a decrease in the market
value of swaps, offset by an increase in accrued interest payable
of $2.1 million, primarily on deposits.
Total shareholders’ equity was $195.2 million as
of December 31, 2023, compared to $166.4 million as of December 31,
2022, an increase of $28.9 million, or 17.3%, primarily driven by
an increase of $18.1 million in retained earnings and a decrease of
$9.2 million in accumulated other comprehensive loss. The increase
in retained earnings was due primarily to net income of $25.0
million, offset by $5.8 million in dividends declared and a $1.1
million one-time adjustment due to the implementation of CECL. The
improvement in accumulated other comprehensive loss was primarily
due to an improvement in the fair value of available for sale
securities, when compared to the prior year.
The total equity to total assets ratio was 7.20%
as of December 31, 2023, compared to 6.29% as of December 31, 2022.
The tangible equity to tangible assets ratio was 6.45% as of
December 31, 2023 compared to 5.51% as of December 31, 2022 1. Book
value per share increased to $41.07 as of December 31, 2023 from
$35.32 as of December 31, 2022. As of December 31, 2023, 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
Management believes the Corporation has the
necessary liquidity to allow for flexibility in meeting its various
business needs. The Corporation uses a variety of resources to
manage its liquidity. 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, and FHLBNY advances. As of December 31,
2023, the Corporation's cash and cash equivalents balance was $36.8
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 December
31, 2023, the Corporation's investment in securities available for
sale was $584.0 million, $329.0 million of which was not pledged as
collateral. Additionally, as of December 31, 2023, the Bank's
overnight advance line capacity at the Federal Home Loan Bank of
New York was $224.1 million, of which $55.3 million in US
Government treasury securities was considered unpledged. $31.9
million of this total capacity was utilized as of December 31,
2023. Borrowings may be used on a short-term basis for liquidity
purposes or on a long-term basis to fund asset growth. Additional
funding was available to the Corporation through the Bank Term
Funding Program (BTFP) and Discount Window Lending provided by the
Federal Reserve, however the Corporation did not utilize these
sources during 2023. Subsequent to the periods presented, the
Corporation received approval for, and has pledged collateral at
the Federal Reserve for the purpose of utilizing the BTFP.
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. As of December 31, 2022, uninsured deposits totaled
$700.9 million, or 30.1% of total deposits, including $152.9
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 that it will
continue utilizing brokered deposits as a secondary source of
funding in support of growth. As of December 31, 2023, the
Corporation has entered into brokered deposit arrangements with
multiple brokers. As of December 31, 2023, brokered deposits
carried terms between 3 and 48 months, with staggered maturities,
totaling $142.8 million. Excluding brokered deposits, total
deposits decreased $11.8 million when compared to the prior
quarter-end. Decreases from the prior quarter-end were impacted by
the cyclical nature of public funds deposits, which decreased $21.2
million during the fourth quarter of 2023.
Other
Items
The market value of total assets under
management or administration in our Wealth Management Group was
$2.242 billion as of December 31, 2023, including $381.3 million of
assets under management or administration for the Corporation,
compared to $2.053 billion as of December 31, 2022, including
$346.5 million of assets under management or administration for the
Corporation, an increase of $189.4 million, or 9.2%, due primarily
to broad improvements in financial markets during the year.
As previously announced on January 8, 2021, the
Corporation announced that the 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 December
31, 2023, 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 fourth
quarter of 2023. The weighted average cost was $40.42 per share
repurchased. Remaining buyback authority under the share repurchase
program was 200,816 shares at December 31, 2023.
During the fourth quarter of 2023, Chemung Risk
Management, Inc., which served as a wholly owned captive insurance
company based in the State of Nevada, was dissolved by the
Corporation effective December 6, 2023. The dissolution of Chemung
Risk Management did not have a significant impact to financial
results for the period ended December 31, 2023.
About Chemung
Financial Corporation
Chemung Financial Corporation is a $2.7 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 2022 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.
|
Chemung Financial Corporation |
|
|
|
|
|
|
|
|
|
|
| Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
Dec.
31, |
|
Sept.
30, |
|
June
30, |
|
March
31, |
|
Dec.
31, |
|
(in thousands) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
| Cash and due
from financial institutions |
|
$ |
22,247 |
|
|
$ |
52,563 |
|
|
$ |
25,499 |
|
|
$ |
25,109 |
|
|
$ |
29,309 |
|
|
Interest-earning deposits in other financial institutions |
|
|
14,600 |
|
|
|
23,017 |
|
|
|
28,727 |
|
|
|
9,532 |
|
|
|
26,560 |
|
|
Total cash and cash equivalents |
|
|
36,847 |
|
|
|
75,580 |
|
|
|
54,226 |
|
|
|
34,641 |
|
|
|
55,869 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Equity
investments |
|
|
3,046 |
|
|
|
2,811 |
|
|
|
2,841 |
|
|
|
2,949 |
|
|
|
2,830 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Securities
available for sale |
|
|
583,993 |
|
|
|
569,004 |
|
|
|
604,313 |
|
|
|
626,055 |
|
|
|
632,589 |
|
| Securities
held to maturity |
|
|
785 |
|
|
|
1,804 |
|
|
|
1,804 |
|
|
|
1,932 |
|
|
|
2,424 |
|
| FHLB and FRB
stock, at cost |
|
|
5,498 |
|
|
|
4,053 |
|
|
|
6,328 |
|
|
|
7,913 |
|
|
|
8,197 |
|
|
Total investment securities |
|
|
590,276 |
|
|
|
574,861 |
|
|
|
612,445 |
|
|
|
635,900 |
|
|
|
643,210 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
1,387,321 |
|
|
|
1,341,017 |
|
|
|
1,302,333 |
|
|
|
1,280,804 |
|
|
|
1,249,206 |
|
|
Mortgage |
|
|
277,992 |
|
|
|
281,361 |
|
|
|
285,084 |
|
|
|
285,944 |
|
|
|
285,672 |
|
|
Consumer |
|
|
307,351 |
|
|
|
308,310 |
|
|
|
306,489 |
|
|
|
306,953 |
|
|
|
294,570 |
|
|
Loans, net of deferred loan fees |
|
|
1,972,664 |
|
|
|
1,930,688 |
|
|
|
1,893,906 |
|
|
|
1,873,701 |
|
|
|
1,829,448 |
|
| Allowance
for credit losses |
|
|
(22,517 |
) |
|
|
(20,252 |
) |
|
|
(20,172 |
) |
|
|
(20,075 |
) |
|
|
(19,659 |
) |
|
Loans, net |
|
|
1,950,147 |
|
|
|
1,910,436 |
|
|
|
1,873,734 |
|
|
|
1,853,626 |
|
|
|
1,809,789 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Loans held
for sale |
|
|
- |
|
|
|
- |
|
|
|
785 |
|
|
|
- |
|
|
|
- |
|
| Premises and
equipment, net |
|
|
14,571 |
|
|
|
15,036 |
|
|
|
15,496 |
|
|
|
15,867 |
|
|
|
16,113 |
|
| Operating
lease right-of-use assets |
|
|
5,648 |
|
|
|
5,850 |
|
|
|
6,050 |
|
|
|
6,250 |
|
|
|
6,449 |
|
|
Goodwill |
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
|
|
21,824 |
|
| Accrued
interest receivable and other assets |
|
|
88,170 |
|
|
|
101,436 |
|
|
|
87,272 |
|
|
|
83,126 |
|
|
|
89,469 |
|
|
Total assets |
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
|
$ |
2,654,183 |
|
|
$ |
2,645,553 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand deposits |
|
$ |
653,166 |
|
|
$ |
683,348 |
|
|
$ |
671,643 |
|
|
$ |
690,596 |
|
|
$ |
733,329 |
|
|
Interest-bearing demand deposits |
|
|
291,139 |
|
|
|
310,885 |
|
|
|
273,379 |
|
|
|
287,242 |
|
|
|
271,645 |
|
| Money market
accounts |
|
|
623,714 |
|
|
|
626,256 |
|
|
|
629,986 |
|
|
|
631,052 |
|
|
|
640,840 |
|
| Savings
deposits |
|
|
249,144 |
|
|
|
261,822 |
|
|
|
269,700 |
|
|
|
271,445 |
|
|
|
279,029 |
|
| Time
deposits |
|
|
612,264 |
|
|
|
591,188 |
|
|
|
545,486 |
|
|
|
452,094 |
|
|
|
402,384 |
|
|
Total deposits |
|
|
2,429,427 |
|
|
|
2,473,499 |
|
|
|
2,390,194 |
|
|
|
2,332,429 |
|
|
|
2,327,227 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Advances and
other debt |
|
|
34,970 |
|
|
|
3,120 |
|
|
|
53,949 |
|
|
|
93,328 |
|
|
|
99,137 |
|
| Operating
lease liabilities |
|
|
5,827 |
|
|
|
6,028 |
|
|
|
6,228 |
|
|
|
6,427 |
|
|
|
6,620 |
|
| Accrued
interest payable and other liabilities |
|
|
45,064 |
|
|
|
55,123 |
|
|
|
46,876 |
|
|
|
44,658 |
|
|
|
46,181 |
|
|
Total liabilities |
|
|
2,515,288 |
|
|
|
2,537,770 |
|
|
|
2,497,247 |
|
|
|
2,476,842 |
|
|
|
2,479,165 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
| Common
stock |
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
|
53 |
|
|
Additional-paid-in capital |
|
|
47,773 |
|
|
|
47,974 |
|
|
|
47,740 |
|
|
|
47,387 |
|
|
|
47,331 |
|
| Retained
earnings |
|
|
229,930 |
|
|
|
227,596 |
|
|
|
221,412 |
|
|
|
216,593 |
|
|
|
211,859 |
|
| Treasury
stock, at cost |
|
|
(16,502 |
) |
|
|
(16,880 |
) |
|
|
(17,033 |
) |
|
|
(17,219 |
) |
|
|
(17,598 |
) |
| Accumulated
other comprehensive loss |
|
|
(66,013 |
) |
|
|
(88,679 |
) |
|
|
(74,746 |
) |
|
|
(69,473 |
) |
|
|
(75,257 |
) |
|
Total shareholders' equity |
|
|
195,241 |
|
|
|
170,064 |
|
|
|
177,426 |
|
|
|
177,341 |
|
|
|
166,388 |
|
|
Total liabilities and shareholders' equity |
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
|
$ |
2,654,183 |
|
|
$ |
2,645,553 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Period-end
shares outstanding |
|
|
4,754 |
|
|
|
4,738 |
|
|
|
4,732 |
|
|
|
4,726 |
|
|
|
4,711 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Chemung Financial Corporation |
|
|
|
|
|
|
|
|
|
|
|
| Consolidated
Statements of Income (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Percent |
|
Twelve Months Ended December 31, |
|
Percent |
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
26,115 |
|
|
$ |
20,510 |
|
|
27.3 |
|
|
$ |
97,228 |
|
|
$ |
68,051 |
|
|
42.9 |
|
| Taxable
securities |
|
3,533 |
|
|
|
3,563 |
|
|
(0.8 |
) |
|
|
14,283 |
|
|
|
12,096 |
|
|
18.1 |
|
| Tax exempt
securities |
|
257 |
|
|
|
263 |
|
|
(2.3 |
) |
|
|
1,035 |
|
|
|
1,068 |
|
|
(3.1 |
) |
|
Interest-earning deposits |
|
128 |
|
|
|
144 |
|
|
(11.1 |
) |
|
|
528 |
|
|
|
260 |
|
|
103.1 |
|
|
Total interest and dividend income |
|
30,033 |
|
|
|
24,480 |
|
|
22.7 |
|
|
|
113,074 |
|
|
|
81,475 |
|
|
38.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
11,349 |
|
|
|
3,333 |
|
|
240.5 |
|
|
|
35,926 |
|
|
|
6,655 |
|
|
439.8 |
|
| Borrowed
funds |
|
786 |
|
|
|
276 |
|
|
184.8 |
|
|
|
2,691 |
|
|
|
641 |
|
|
319.8 |
|
|
Total interest expense |
|
12,135 |
|
|
|
3,609 |
|
|
236.2 |
|
|
|
38,617 |
|
|
|
7,296 |
|
|
429.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
17,898 |
|
|
|
20,871 |
|
|
(14.2 |
) |
|
|
74,457 |
|
|
|
74,179 |
|
|
0.4 |
|
| Provision
(credit) for credit losses |
|
2,300 |
|
|
|
1,080 |
|
|
113.0 |
|
|
|
3,262 |
|
|
|
(554 |
) |
|
688.8 |
|
|
Net interest income after provision for credit losses |
|
15,598 |
|
|
|
19,791 |
|
|
(21.2 |
) |
|
|
71,195 |
|
|
|
74,733 |
|
|
(4.7 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
| Wealth
management group fee income |
|
2,744 |
|
|
|
2,492 |
|
|
10.1 |
|
|
|
10,460 |
|
|
|
10,280 |
|
|
1.8 |
|
| Service
charges on deposit accounts |
|
1,001 |
|
|
|
999 |
|
|
0.2 |
|
|
|
3,919 |
|
|
|
3,788 |
|
|
3.5 |
|
| Interchange
revenue from debit card transactions |
|
1,138 |
|
|
|
1,141 |
|
|
(0.3 |
) |
|
|
4,606 |
|
|
|
4,603 |
|
|
0.1 |
|
| Net gains on
securities transactions |
|
(39 |
) |
|
|
— |
|
|
N/M |
|
|
(39 |
) |
|
|
— |
|
|
N/M |
| Change in
fair value of equity investments |
|
202 |
|
|
|
99 |
|
|
104.0 |
|
|
|
103 |
|
|
|
(349 |
) |
|
129.5 |
|
| Net gains on
sales of loans held for sale |
|
54 |
|
|
|
1 |
|
|
N/M |
|
|
144 |
|
|
|
107 |
|
|
34.6 |
|
| Net gains
(losses) on sales of other real estate owned |
|
23 |
|
|
|
(8 |
) |
|
(387.5 |
) |
|
|
37 |
|
|
|
60 |
|
|
(38.3 |
) |
| Income from
bank owned life insurance |
|
11 |
|
|
|
12 |
|
|
(8.3 |
) |
|
|
43 |
|
|
|
46 |
|
|
(6.5 |
) |
| Other |
|
737 |
|
|
|
682 |
|
|
8.1 |
|
|
|
5,276 |
|
|
|
2,901 |
|
|
81.9 |
|
|
Total non-interest income |
|
5,871 |
|
|
|
5,418 |
|
|
8.4 |
|
|
|
24,549 |
|
|
|
21,436 |
|
|
14.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
| Salaries and
wages |
|
6,803 |
|
|
|
6,225 |
|
|
9.3 |
|
|
|
26,832 |
|
|
|
25,054 |
|
|
7.1 |
|
| Pension and
other employee benefits |
|
1,901 |
|
|
|
1,989 |
|
|
(4.4 |
) |
|
|
7,368 |
|
|
|
7,668 |
|
|
(3.9 |
) |
| Other
components of net periodic pension and postretirement benefits |
|
(154 |
) |
|
|
(424 |
) |
|
63.7 |
|
|
|
(676 |
) |
|
|
(1,648 |
) |
|
59.0 |
|
| Net
occupancy |
|
1,395 |
|
|
|
1,474 |
|
|
(5.4 |
) |
|
|
5,637 |
|
|
|
5,539 |
|
|
1.8 |
|
| Furniture
and equipment |
|
496 |
|
|
|
566 |
|
|
(12.4 |
) |
|
|
1,728 |
|
|
|
1,906 |
|
|
(9.3 |
) |
| Data
processing |
|
2,506 |
|
|
|
2,177 |
|
|
15.1 |
|
|
|
9,840 |
|
|
|
8,919 |
|
|
10.3 |
|
| Professional
services |
|
697 |
|
|
|
544 |
|
|
28.1 |
|
|
|
2,293 |
|
|
|
2,171 |
|
|
5.6 |
|
| Amortization
of intangible assets |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
(100.0 |
) |
| Marketing
and advertising |
|
203 |
|
|
|
215 |
|
|
(5.6 |
) |
|
|
923 |
|
|
|
941 |
|
|
(1.9 |
) |
| Other real
estate owned expense |
|
(69 |
) |
|
|
12 |
|
|
N/M |
|
|
(20 |
) |
|
|
(5 |
) |
|
(300.0 |
) |
| FDIC
insurance |
|
520 |
|
|
|
369 |
|
|
40.9 |
|
|
|
2,128 |
|
|
|
1,356 |
|
|
56.9 |
|
| Loan
expense |
|
258 |
|
|
|
674 |
|
|
(61.7 |
) |
|
|
1,047 |
|
|
|
1,001 |
|
|
4.6 |
|
| Other |
|
2,270 |
|
|
|
1,872 |
|
|
21.3 |
|
|
|
7,143 |
|
|
|
6,363 |
|
|
12.3 |
|
|
Total non-interest expense |
|
16,826 |
|
|
|
15,693 |
|
|
7.2 |
|
|
|
64,243 |
|
|
|
59,280 |
|
|
8.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
4,643 |
|
|
|
9,516 |
|
|
(51.2 |
) |
|
|
31,501 |
|
|
|
36,889 |
|
|
(14.6 |
) |
| Income tax
expense |
|
841 |
|
|
|
2,077 |
|
|
(59.5 |
) |
|
|
6,501 |
|
|
|
8,106 |
|
|
(19.8 |
) |
|
Net income |
$ |
3,802 |
|
|
$ |
7,439 |
|
|
(48.9 |
) |
|
$ |
25,000 |
|
|
$ |
28,783 |
|
|
(13.1 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Basic and
diluted earnings per share |
$ |
0.80 |
|
|
$ |
1.58 |
|
|
|
|
$ |
5.28 |
|
|
$ |
6.13 |
|
|
|
| Cash
dividends declared per share |
$ |
0.31 |
|
|
$ |
0.31 |
|
|
|
|
$ |
1.24 |
|
|
$ |
1.24 |
|
|
|
| Average
basic and diluted shares outstanding |
|
4,743 |
|
|
|
4,698 |
|
|
|
|
|
4,732 |
|
|
|
4,693 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| N/M - Not
Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
Chemung Financial Corporation |
|
As of or for the Three Months Ended |
|
As of or for the Twelve Months Ended |
|
Consolidated Financial Highlights (Unaudited) |
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except per share data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
RESULTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
income |
|
$ |
30,033 |
|
|
$ |
29,015 |
|
|
$ |
27,796 |
|
|
$ |
26,230 |
|
|
$ |
24,480 |
|
|
$ |
113,074 |
|
|
$ |
81,475 |
|
| Interest
expense |
|
|
12,135 |
|
|
|
10,998 |
|
|
|
9,201 |
|
|
|
6,283 |
|
|
|
3,609 |
|
|
|
38,617 |
|
|
|
7,296 |
|
| Net interest
income |
|
|
17,898 |
|
|
|
18,017 |
|
|
|
18,595 |
|
|
|
19,947 |
|
|
|
20,871 |
|
|
|
74,457 |
|
|
|
74,179 |
|
| Provision
(credit) for credit losses (g) |
|
|
2,300 |
|
|
|
449 |
|
|
|
236 |
|
|
|
277 |
|
|
|
1,080 |
|
|
|
3,262 |
|
|
|
(554 |
) |
| Net interest
income after provision for credit losses |
|
|
15,598 |
|
|
|
17,568 |
|
|
|
18,359 |
|
|
|
19,670 |
|
|
|
19,791 |
|
|
|
71,195 |
|
|
|
74,733 |
|
| Non-interest
income |
|
|
5,871 |
|
|
|
7,808 |
|
|
|
5,447 |
|
|
|
5,423 |
|
|
|
5,418 |
|
|
|
24,549 |
|
|
|
21,436 |
|
| Non-interest
expense |
|
|
16,826 |
|
|
|
15,668 |
|
|
|
15,913 |
|
|
|
15,836 |
|
|
|
15,693 |
|
|
|
64,243 |
|
|
|
59,280 |
|
| Income
before income tax expense |
|
|
4,643 |
|
|
|
9,708 |
|
|
|
7,893 |
|
|
|
9,257 |
|
|
|
9,516 |
|
|
|
31,501 |
|
|
|
36,889 |
|
| Income tax
expense |
|
|
841 |
|
|
|
2,060 |
|
|
|
1,613 |
|
|
|
1,987 |
|
|
|
2,077 |
|
|
|
6,501 |
|
|
|
8,106 |
|
| Net
income |
|
$ |
3,802 |
|
|
$ |
7,648 |
|
|
$ |
6,280 |
|
|
$ |
7,270 |
|
|
$ |
7,439 |
|
|
$ |
25,000 |
|
|
$ |
28,783 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and
diluted earnings per share |
|
$ |
0.80 |
|
|
$ |
1.61 |
|
|
$ |
1.33 |
|
|
$ |
1.54 |
|
|
$ |
1.58 |
|
|
$ |
5.28 |
|
|
$ |
6.13 |
|
| Average
basic and diluted shares outstanding |
|
|
4,743 |
|
|
|
4,736 |
|
|
|
4,729 |
|
|
|
4,721 |
|
|
|
4,698 |
|
|
|
4,732 |
|
|
|
4,693 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on
average assets |
|
|
0.56 |
% |
|
|
1.14 |
% |
|
|
0.95 |
% |
|
|
1.12 |
% |
|
|
1.15 |
% |
|
|
0.94 |
% |
|
|
1.15 |
% |
| Return on
average equity |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
16.97 |
% |
|
|
18.36 |
% |
|
|
14.11 |
% |
|
|
15.93 |
% |
| Return on
average tangible equity (a) |
|
|
9.86 |
% |
|
|
19.22 |
% |
|
|
15.89 |
% |
|
|
19.40 |
% |
|
|
21.25 |
% |
|
|
16.09 |
% |
|
|
18.12 |
% |
| Efficiency
ratio (unadjusted) (f) |
|
|
70.79 |
% |
|
|
60.67 |
% |
|
|
66.19 |
% |
|
|
62.42 |
% |
|
|
59.69 |
% |
|
|
64.89 |
% |
|
|
62.00 |
% |
| Efficiency
ratio (adjusted) (a) (b) |
|
|
70.42 |
% |
|
|
66.55 |
% |
|
|
65.94 |
% |
|
|
62.18 |
% |
|
|
59.44 |
% |
|
|
66.20 |
% |
|
|
61.71 |
% |
| Non-interest
expense to average assets |
|
|
2.48 |
% |
|
|
2.33 |
% |
|
|
2.41 |
% |
|
|
2.44 |
% |
|
|
2.42 |
% |
|
|
2.41 |
% |
|
|
2.36 |
% |
| Loans to
deposits |
|
|
81.20 |
% |
|
|
78.05 |
% |
|
|
79.24 |
% |
|
|
80.33 |
% |
|
|
78.61 |
% |
|
|
81.20 |
% |
|
|
78.61 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELDS / RATES - Fully Taxable Equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Yield on
loans |
|
|
5.31 |
% |
|
|
5.21 |
% |
|
|
5.09 |
% |
|
|
4.90 |
% |
|
|
4.57 |
% |
|
|
5.13 |
% |
|
|
4.14 |
% |
| Yield on
investments |
|
|
2.24 |
% |
|
|
2.22 |
% |
|
|
2.22 |
% |
|
|
2.18 |
% |
|
|
2.09 |
% |
|
|
2.21 |
% |
|
|
1.71 |
% |
| Yield on
interest-earning assets |
|
|
4.50 |
% |
|
|
4.40 |
% |
|
|
4.29 |
% |
|
|
4.12 |
% |
|
|
3.82 |
% |
|
|
4.33 |
% |
|
|
3.35 |
% |
| Cost of
interest-bearing deposits |
|
|
2.59 |
% |
|
|
2.44 |
% |
|
|
2.01 |
% |
|
|
1.34 |
% |
|
|
0.82 |
% |
|
|
2.11 |
% |
|
|
0.44 |
% |
| Cost of
borrowings |
|
|
5.52 |
% |
|
|
5.25 |
% |
|
|
5.13 |
% |
|
|
4.91 |
% |
|
|
4.30 |
% |
|
|
5.18 |
% |
|
|
2.76 |
% |
| Cost of
interest-bearing liabilities |
|
|
2.68 |
% |
|
|
2.47 |
% |
|
|
2.11 |
% |
|
|
1.49 |
% |
|
|
0.88 |
% |
|
|
2.20 |
% |
|
|
0.47 |
% |
| Interest
rate spread |
|
|
1.82 |
% |
|
|
1.93 |
% |
|
|
2.18 |
% |
|
|
2.63 |
% |
|
|
2.94 |
% |
|
|
2.13 |
% |
|
|
2.88 |
% |
| Net interest
margin, fully taxable equivalent |
|
|
2.69 |
% |
|
|
2.73 |
% |
|
|
2.87 |
% |
|
|
3.14 |
% |
|
|
3.26 |
% |
|
|
2.85 |
% |
|
|
3.05 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity
to total assets at end of period |
|
|
7.20 |
% |
|
|
6.28 |
% |
|
|
6.63 |
% |
|
|
6.68 |
% |
|
|
6.29 |
% |
|
|
7.20 |
% |
|
|
6.29 |
% |
| Tangible
equity to tangible assets at end of period (a) |
|
|
6.45 |
% |
|
|
5.52 |
% |
|
|
5.87 |
% |
|
|
5.91 |
% |
|
|
5.51 |
% |
|
|
6.45 |
% |
|
|
5.51 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value
per share |
|
$ |
41.07 |
|
|
$ |
35.90 |
|
|
$ |
37.49 |
|
|
$ |
37.53 |
|
|
$ |
35.32 |
|
|
$ |
41.07 |
|
|
$ |
35.32 |
|
| Tangible
book value per share (a) |
|
|
36.48 |
|
|
|
31.29 |
|
|
|
32.88 |
|
|
|
32.91 |
|
|
|
30.69 |
|
|
|
36.48 |
|
|
|
30.69 |
|
| Period-end
market value per share |
|
|
49.80 |
|
|
|
39.61 |
|
|
|
38.41 |
|
|
|
41.50 |
|
|
|
45.87 |
|
|
|
49.80 |
|
|
|
45.87 |
|
| Dividends
declared per share |
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
0.31 |
|
|
|
1.24 |
|
|
|
1.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and
loans held for sale (c) |
|
$ |
1,956,022 |
|
|
$ |
1,909,100 |
|
|
$ |
1,880,224 |
|
|
$ |
1,849,310 |
|
|
$ |
1,787,103 |
|
|
$ |
1,898,986 |
|
|
$ |
1,646,576 |
|
| Interest
earning assets |
|
|
2,654,638 |
|
|
|
2,627,012 |
|
|
|
2,609,893 |
|
|
|
2,592,709 |
|
|
|
2,550,834 |
|
|
|
2,621,251 |
|
|
|
2,444,287 |
|
| Total
assets |
|
|
2,688,536 |
|
|
|
2,664,570 |
|
|
|
2,649,399 |
|
|
|
2,627,088 |
|
|
|
2,574,639 |
|
|
|
2,660,329 |
|
|
|
2,496,099 |
|
|
Deposits |
|
|
2,397,663 |
|
|
|
2,410,931 |
|
|
|
2,363,847 |
|
|
|
2,337,476 |
|
|
|
2,347,719 |
|
|
|
2,377,736 |
|
|
|
2,255,326 |
|
| Total
equity |
|
|
174,868 |
|
|
|
179,700 |
|
|
|
180,357 |
|
|
|
173,786 |
|
|
|
160,740 |
|
|
|
177,187 |
|
|
|
180,684 |
|
| Tangible
equity (a) |
|
|
153,044 |
|
|
|
157,876 |
|
|
|
158,533 |
|
|
|
151,962 |
|
|
|
138,916 |
|
|
|
155,363 |
|
|
|
158,857 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
charge-offs (recoveries) |
|
$ |
171 |
|
|
$ |
356 |
|
|
$ |
146 |
|
|
$ |
269 |
|
|
$ |
52 |
|
|
$ |
941 |
|
|
$ |
813 |
|
|
Non-performing loans (d) |
|
|
10,411 |
|
|
|
6,826 |
|
|
|
7,304 |
|
|
|
7,731 |
|
|
|
8,178 |
|
|
|
10,411 |
|
|
|
8,178 |
|
|
Non-performing assets (e) |
|
|
10,738 |
|
|
|
7,055 |
|
|
|
7,471 |
|
|
|
7,927 |
|
|
|
8,373 |
|
|
|
10,738 |
|
|
|
8,373 |
|
| Allowance
for credit losses (g) |
|
|
22,517 |
|
|
|
20,252 |
|
|
|
20,172 |
|
|
|
20,075 |
|
|
|
19,659 |
|
|
|
22,517 |
|
|
|
19,659 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) to average loans |
|
0.03 |
% |
|
|
0.07 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.01 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
|
Non-performing loans to total loans |
|
|
0.53 |
% |
|
|
0.35 |
% |
|
|
0.39 |
% |
|
|
0.41 |
% |
|
|
0.45 |
% |
|
|
0.53 |
% |
|
|
0.45 |
% |
|
Non-performing assets to total assets |
|
|
0.40 |
% |
|
|
0.26 |
% |
|
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.32 |
% |
|
|
0.40 |
% |
|
|
0.32 |
% |
| Allowance
for credit losses to total loans (g) |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
1.14 |
% |
|
|
1.07 |
% |
| Allowance
for credit losses to non-performing loans (g) |
|
|
216.28 |
% |
|
|
296.69 |
% |
|
|
276.17 |
% |
|
|
259.66 |
% |
|
|
240.39 |
% |
|
|
216.28 |
% |
|
|
240.39 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) See the
GAAP to Non-GAAP reconciliations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (b) Efficiency ratio (adjusted) is non-interest
expense less amortization of intangible assets divided by the total
of fully taxable equivalent net interest income plus non-interest
income less recognition of the employee retention tax credit
(ERTC). |
| (c) Loans and loans
held for sale do not reflect the allowance for credit losses. |
|
|
|
|
| (d) Non-performing
loans include non-accrual loans only. |
|
|
|
|
|
|
| (e) Non-performing
assets include non-performing loans plus other real estate
owned. |
|
|
|
|
| (f) Efficiency ratio
(unadjusted) is non-interest expense divided by the total of net
interest income plus non-interest income. |
|
|
|
|
| (g) Corporation
adopted CECL January 1, 2023. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemung Financial Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Consolidated
Balance Sheets & Net Interest Income Analysis and Rate/Volume
Analysis of Net Interest Income (Unaudited) |
| |
|
Three Months Ended December 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
Three Months Ended December 31, 2023 vs. 2022 |
| (in
thousands) |
|
AverageBalance |
|
Interest |
|
Yield /Rate |
|
AverageBalance |
|
Interest |
|
Yield /Rate |
|
TotalChange |
|
Due toVolume |
|
Due toRate |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest
earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans |
|
$ |
1,369,198 |
|
|
$ |
19,649 |
|
|
5.69 |
% |
|
$ |
1,224,684 |
|
|
$ |
15,233 |
|
|
4.93 |
% |
|
$ |
4,416 |
|
|
$ |
1,915 |
|
|
$ |
2,501 |
|
| Mortgage
loans |
|
|
279,361 |
|
|
|
2,531 |
|
|
3.59 |
% |
|
|
284,695 |
|
|
|
2,428 |
|
|
3.38 |
% |
|
|
103 |
|
|
|
(46 |
) |
|
|
149 |
|
| Consumer
loans |
|
|
307,463 |
|
|
|
3,991 |
|
|
5.15 |
% |
|
|
277,724 |
|
|
|
2,904 |
|
|
4.15 |
% |
|
|
1,087 |
|
|
|
334 |
|
|
|
753 |
|
| Taxable
securities |
|
|
647,650 |
|
|
|
3,537 |
|
|
2.17 |
% |
|
|
706,392 |
|
|
|
3,567 |
|
|
2.00 |
% |
|
|
(30 |
) |
|
|
(314 |
) |
|
|
284 |
|
| Tax-exempt
securities |
|
|
40,339 |
|
|
|
284 |
|
|
2.79 |
% |
|
|
41,101 |
|
|
|
316 |
|
|
3.05 |
% |
|
|
(32 |
) |
|
|
(6 |
) |
|
|
(26 |
) |
|
Interest-earning deposits |
|
|
10,627 |
|
|
|
128 |
|
|
4.78 |
% |
|
|
16,238 |
|
|
|
144 |
|
|
3.52 |
% |
|
|
(16 |
) |
|
|
(59 |
) |
|
|
43 |
|
| Total
interest earning assets |
|
|
2,654,638 |
|
|
|
30,120 |
|
|
4.50 |
% |
|
|
2,550,834 |
|
|
|
24,592 |
|
|
3.82 |
% |
|
|
5,528 |
|
|
|
1,824 |
|
|
|
3,704 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due
from banks |
|
|
25,142 |
|
|
|
|
|
|
|
25,032 |
|
|
|
|
|
|
|
|
|
|
|
| Other
assets |
|
|
29,153 |
|
|
|
|
|
|
|
17,620 |
|
|
|
|
|
|
|
|
|
|
|
| Allowance
for credit losses (3) |
|
|
(20,397 |
) |
|
|
|
|
|
|
(18,847 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,688,536 |
|
|
|
|
|
|
$ |
2,574,639 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
$ |
285,733 |
|
|
$ |
1,176 |
|
|
1.63 |
% |
|
$ |
290,471 |
|
|
$ |
193 |
|
|
0.26 |
% |
|
$ |
983 |
|
|
$ |
(3 |
) |
|
$ |
986 |
|
| Savings and
money market |
|
|
900,367 |
|
|
|
4,383 |
|
|
1.93 |
% |
|
|
953,115 |
|
|
|
1,212 |
|
|
0.50 |
% |
|
|
3,171 |
|
|
|
(70 |
) |
|
|
3,241 |
|
| Time
deposits |
|
|
447,273 |
|
|
|
4,374 |
|
|
3.88 |
% |
|
|
297,542 |
|
|
|
1,354 |
|
|
1.81 |
% |
|
|
3,020 |
|
|
|
923 |
|
|
|
2,097 |
|
| Brokered
deposits |
|
|
104,043 |
|
|
|
1,416 |
|
|
5.40 |
% |
|
|
62,273 |
|
|
|
573 |
|
|
3.65 |
% |
|
|
843 |
|
|
|
491 |
|
|
|
352 |
|
| FHLBNY
overnight advances |
|
|
53,390 |
|
|
|
758 |
|
|
5.63 |
% |
|
|
22,215 |
|
|
|
247 |
|
|
4.40 |
% |
|
|
511 |
|
|
|
426 |
|
|
|
85 |
|
| Long-term
capital leases |
|
|
3,074 |
|
|
|
28 |
|
|
3.61 |
% |
|
|
3,350 |
|
|
|
30 |
|
|
3.58 |
% |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
— |
|
| Total
interest-bearing liabilities |
|
|
1,793,880 |
|
|
|
12,135 |
|
|
2.68 |
% |
|
|
1,628,966 |
|
|
|
3,609 |
|
|
0.88 |
% |
|
|
8,526 |
|
|
|
1,765 |
|
|
|
6,761 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand
deposits |
|
|
660,247 |
|
|
|
|
|
|
|
744,318 |
|
|
|
|
|
|
|
|
|
|
|
| Other
liabilities |
|
|
59,541 |
|
|
|
|
|
|
|
40,615 |
|
|
|
|
|
|
|
|
|
|
|
| Total
liabilities |
|
|
2,513,668 |
|
|
|
|
|
|
|
2,413,899 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
174,868 |
|
|
|
|
|
|
|
160,740 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,688,536 |
|
|
|
|
|
|
$ |
2,574,639 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fully
taxable equivalent net interest income |
|
|
|
|
17,985 |
|
|
|
|
|
|
|
20,983 |
|
|
|
|
$ |
(2,998 |
) |
|
$ |
59 |
|
|
$ |
(3,057 |
) |
| Net interest
rate spread (1) |
|
|
|
|
|
1.82 |
% |
|
|
|
|
|
2.94 |
% |
|
|
|
|
|
|
| Net interest
margin, fully taxable equivalent (2) |
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
| Taxable
equivalent adjustment |
|
|
|
|
(87 |
) |
|
|
|
|
|
|
(112 |
) |
|
|
|
|
|
|
|
|
| Net interest
income |
|
|
|
$ |
17,898 |
|
|
|
|
|
|
$ |
20,871 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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) |
| |
Twelve
Months Ended December 31, 2023 |
|
Twelve
Months Ended December 31, 2022 |
|
Twelve
Months Ended December 31, 2023 vs. 2022 |
| (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 |
$ |
1,309,692 |
|
|
$ |
72,698 |
|
|
5.55 |
% |
|
$ |
1,143,908 |
|
|
$ |
50,146 |
|
|
4.38 |
% |
|
$ |
22,552 |
|
|
$ |
7,932 |
|
|
$ |
14,620 |
|
| Mortgage
loans |
|
283,093 |
|
|
|
10,084 |
|
|
3.56 |
% |
|
|
274,067 |
|
|
|
9,226 |
|
|
3.37 |
% |
|
|
858 |
|
|
|
316 |
|
|
|
542 |
|
| Consumer
loans |
|
306,201 |
|
|
|
14,664 |
|
|
4.79 |
% |
|
|
228,601 |
|
|
|
8,857 |
|
|
3.87 |
% |
|
|
5,807 |
|
|
|
3,415 |
|
|
|
2,392 |
|
| Taxable
securities |
|
671,345 |
|
|
|
14,295 |
|
|
2.13 |
% |
|
|
734,898 |
|
|
|
12,107 |
|
|
1.65 |
% |
|
|
2,188 |
|
|
|
(1,115 |
) |
|
|
3,303 |
|
| Tax-exempt
securities |
|
40,506 |
|
|
|
1,171 |
|
|
2.89 |
% |
|
|
41,915 |
|
|
|
1,304 |
|
|
3.11 |
% |
|
|
(133 |
) |
|
|
(43 |
) |
|
|
(90 |
) |
|
Interest-earning deposits |
|
10,414 |
|
|
|
528 |
|
|
5.07 |
% |
|
|
20,898 |
|
|
|
260 |
|
|
1.24 |
% |
|
|
268 |
|
|
|
(186 |
) |
|
|
454 |
|
| Total
interest earning assets |
|
2,621,251 |
|
|
|
113,440 |
|
|
4.33 |
% |
|
|
2,444,287 |
|
|
|
81,900 |
|
|
3.35 |
% |
|
|
31,540 |
|
|
|
10,319 |
|
|
|
21,221 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
earnings assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due
from banks |
|
25,419 |
|
|
|
|
|
|
|
24,497 |
|
|
|
|
|
|
|
|
|
|
|
| Other
assets |
|
33,871 |
|
|
|
|
|
|
|
46,768 |
|
|
|
|
|
|
|
|
|
|
|
| Allowance
for credit losses (3) |
|
(20,212 |
) |
|
|
|
|
|
|
(19,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,660,329 |
|
|
|
|
|
|
$ |
2,496,099 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
$ |
286,097 |
|
|
$ |
3,136 |
|
|
1.10 |
% |
|
$ |
278,946 |
|
|
$ |
412 |
|
|
0.15 |
% |
|
$ |
2,724 |
|
|
$ |
11 |
|
|
$ |
2,713 |
|
| Savings and
money market |
|
899,996 |
|
|
|
13,027 |
|
|
1.45 |
% |
|
|
949,597 |
|
|
|
2,241 |
|
|
0.24 |
% |
|
|
10,786 |
|
|
|
(125 |
) |
|
|
10,911 |
|
| Time
deposits |
|
375,545 |
|
|
|
12,414 |
|
|
3.31 |
% |
|
|
253,433 |
|
|
|
2,733 |
|
|
1.08 |
% |
|
|
9,681 |
|
|
|
1,832 |
|
|
|
7,849 |
|
| Brokered
deposits |
|
140,845 |
|
|
|
7,349 |
|
|
5.22 |
% |
|
|
44,229 |
|
|
|
1,269 |
|
|
2.87 |
% |
|
|
6,080 |
|
|
|
4,422 |
|
|
|
1,658 |
|
| FHLBNY
overnight advances |
|
48,851 |
|
|
|
2,577 |
|
|
5.28 |
% |
|
|
19,759 |
|
|
|
518 |
|
|
2.62 |
% |
|
|
2,059 |
|
|
|
1,219 |
|
|
|
840 |
|
| Long-term
capital leases |
|
3,177 |
|
|
|
114 |
|
|
3.59 |
% |
|
|
3,449 |
|
|
|
123 |
|
|
3.58 |
% |
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(1 |
) |
| Total
interest-bearing liabilities |
|
1,754,511 |
|
|
|
38,617 |
|
|
2.20 |
% |
|
|
1,549,413 |
|
|
|
7,296 |
|
|
0.47 |
% |
|
|
31,321 |
|
|
|
7,351 |
|
|
|
23,970 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand
deposits |
|
675,253 |
|
|
|
|
|
|
|
729,121 |
|
|
|
|
|
|
|
|
|
|
|
| Other
liabilities |
|
53,378 |
|
|
|
|
|
|
|
36,881 |
|
|
|
|
|
|
|
|
|
|
|
| Total
liabilities |
|
2,483,142 |
|
|
|
|
|
|
|
2,315,415 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
177,187 |
|
|
|
|
|
|
|
180,684 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,660,329 |
|
|
|
|
|
|
$ |
2,496,099 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fully
taxable equivalent net interest income |
|
|
|
74,823 |
|
|
|
|
|
|
|
74,604 |
|
|
|
|
$ |
219 |
|
|
$ |
2,968 |
|
|
$ |
(2,749 |
) |
| Net interest
rate spread (1) |
|
|
|
|
2.13 |
% |
|
|
|
|
|
2.88 |
% |
|
|
|
|
|
|
| Net interest
margin, fully taxable equivalent (2) |
|
|
|
|
2.85 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
| Taxable
equivalent adjustment |
|
|
|
(366 |
) |
|
|
|
|
|
|
(425 |
) |
|
|
|
|
|
|
|
|
| Net interest
income |
|
|
$ |
74,457 |
|
|
|
|
|
|
$ |
74,179 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
|
|
As of or for the Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except ratio data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
NET INTEREST MARGIN - FULLY TAXABLE
EQUIVALENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income
(GAAP) |
|
$ |
17,898 |
|
|
$ |
18,017 |
|
|
$ |
18,595 |
|
|
$ |
19,947 |
|
|
$ |
20,871 |
|
|
$ |
74,457 |
|
|
$ |
74,179 |
|
| Fully taxable equivalent
adjustment |
|
|
87 |
|
|
|
87 |
|
|
|
92 |
|
|
|
98 |
|
|
|
112 |
|
|
|
366 |
|
|
|
425 |
|
| Fully taxable equivalent net
interest income (non-GAAP) |
|
$ |
17,985 |
|
|
$ |
18,104 |
|
|
$ |
18,687 |
|
|
$ |
20,045 |
|
|
$ |
20,983 |
|
|
$ |
74,823 |
|
|
$ |
74,604 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average interest-earning
assets (GAAP) |
|
$ |
2,654,638 |
|
|
$ |
2,627,012 |
|
|
$ |
2,609,893 |
|
|
$ |
2,592,709 |
|
|
$ |
2,550,834 |
|
|
$ |
2,621,251 |
|
|
$ |
2,444,287 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin - fully
taxable equivalent (non-GAAP) |
|
|
2.69 |
% |
|
|
2.73 |
% |
|
|
2.87 |
% |
|
|
3.14 |
% |
|
|
3.26 |
% |
|
|
2.85 |
% |
|
|
3.05 |
% |
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 |
|
|
|
As of or for the Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except ratio data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| EFFICIENCY
RATIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income
(GAAP) |
|
$ |
17,898 |
|
|
$ |
18,017 |
|
|
$ |
18,595 |
|
|
$ |
19,947 |
|
|
$ |
20,871 |
|
|
$ |
74,457 |
|
|
$ |
74,179 |
|
| Fully taxable equivalent
adjustment |
|
|
87 |
|
|
|
87 |
|
|
|
92 |
|
|
|
98 |
|
|
|
112 |
|
|
|
366 |
|
|
|
425 |
|
| Fully taxable equivalent net
interest income (non-GAAP) |
|
$ |
17,985 |
|
|
$ |
18,104 |
|
|
$ |
18,687 |
|
|
$ |
20,045 |
|
|
$ |
20,983 |
|
|
$ |
74,823 |
|
|
$ |
74,604 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest income
(GAAP) |
|
$ |
5,871 |
|
|
$ |
7,808 |
|
|
$ |
5,447 |
|
|
$ |
5,423 |
|
|
$ |
5,418 |
|
|
$ |
24,549 |
|
|
$ |
21,436 |
|
| Less: net (gains) losses on
security transactions |
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
| Less: recognition of employee
retention tax credit |
|
$ |
— |
|
|
$ |
(2,370 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(2,370 |
) |
|
|
| Adjusted non-interest income
(non-GAAP) |
|
$ |
5,910 |
|
|
$ |
5,438 |
|
|
$ |
5,447 |
|
|
$ |
5,423 |
|
|
$ |
5,418 |
|
|
$ |
22,218 |
|
|
$ |
21,436 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest expense
(GAAP) |
|
$ |
16,826 |
|
|
$ |
15,668 |
|
|
$ |
15,913 |
|
|
$ |
15,836 |
|
|
$ |
15,693 |
|
|
$ |
64,243 |
|
|
$ |
59,280 |
|
| Less: amortization of
intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15 |
) |
| Adjusted non-interest expense
(non-GAAP) |
|
$ |
16,826 |
|
|
$ |
15,668 |
|
|
$ |
15,913 |
|
|
$ |
15,836 |
|
|
$ |
15,693 |
|
|
$ |
64,243 |
|
|
$ |
59,265 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio
(unadjusted) |
|
|
70.79 |
% |
|
|
60.67 |
% |
|
|
66.19 |
% |
|
|
62.42 |
% |
|
|
59.69 |
% |
|
|
64.89 |
% |
|
|
62.00 |
% |
| Efficiency ratio
(adjusted) |
|
|
70.42 |
% |
|
|
66.55 |
% |
|
|
65.94 |
% |
|
|
62.18 |
% |
|
|
59.44 |
% |
|
|
66.20 |
% |
|
|
61.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
As of or for the Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except per share and ratio data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| TANGIBLE EQUITY AND
TANGIBLE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (PERIOD
END) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders' equity
(GAAP) |
|
$ |
195,241 |
|
|
$ |
170,064 |
|
|
$ |
177,426 |
|
|
$ |
177,341 |
|
|
$ |
166,388 |
|
|
$ |
195,241 |
|
|
$ |
166,388 |
|
| Less: intangible assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
| Tangible equity
(non-GAAP) |
|
$ |
173,417 |
|
|
$ |
148,240 |
|
|
$ |
155,602 |
|
|
$ |
155,517 |
|
|
$ |
144,564 |
|
|
$ |
173,417 |
|
|
$ |
144,564 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
$ |
2,710,529 |
|
|
$ |
2,707,834 |
|
|
$ |
2,674,673 |
|
|
$ |
2,654,183 |
|
|
$ |
2,645,553 |
|
|
$ |
2,710,529 |
|
|
$ |
2,645,553 |
|
| Less: intangible assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
| Tangible assets
(non-GAAP) |
|
$ |
2,688,705 |
|
|
$ |
2,686,010 |
|
|
$ |
2,652,849 |
|
|
$ |
2,632,359 |
|
|
$ |
2,623,729 |
|
|
$ |
2,688,705 |
|
|
$ |
2,623,729 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity to total assets
at end of period (GAAP) |
|
|
7.20 |
% |
|
|
6.28 |
% |
|
|
6.63 |
% |
|
|
6.68 |
% |
|
|
6.29 |
% |
|
|
7.20 |
% |
|
|
6.29 |
% |
| Book value per share
(GAAP) |
|
$ |
41.07 |
|
|
$ |
35.90 |
|
|
$ |
37.49 |
|
|
$ |
37.53 |
|
|
$ |
35.32 |
|
|
$ |
41.07 |
|
|
$ |
35.32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets at |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| end of period (non-GAAP) |
|
|
6.45 |
% |
|
|
5.52 |
% |
|
|
5.87 |
% |
|
|
5.91 |
% |
|
|
5.51 |
% |
|
|
6.45 |
% |
|
|
5.51 |
% |
| Tangible book value per share
(non-GAAP) |
|
$ |
36.48 |
|
|
$ |
31.29 |
|
|
$ |
32.88 |
|
|
$ |
32.91 |
|
|
$ |
30.69 |
|
|
$ |
36.48 |
|
|
$ |
30.69 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
As of or for the Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except ratio data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| TANGIBLE EQUITY
(AVERAGE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total average shareholders'
equity (GAAP) |
|
$ |
174,868 |
|
|
$ |
179,700 |
|
|
$ |
180,357 |
|
|
$ |
173,786 |
|
|
$ |
160,740 |
|
|
$ |
177,187 |
|
|
$ |
180,684 |
|
| Less: average intangible
assets |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,824 |
) |
|
|
(21,827 |
) |
| Average tangible equity
(non-GAAP) |
|
$ |
153,044 |
|
|
$ |
157,876 |
|
|
$ |
158,533 |
|
|
$ |
151,962 |
|
|
$ |
138,916 |
|
|
$ |
155,363 |
|
|
$ |
158,857 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average equity
(GAAP) |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
16.97 |
% |
|
|
18.36 |
% |
|
|
14.11 |
% |
|
|
15.93 |
% |
| Return on average tangible
equity (non-GAAP) |
|
|
9.86 |
% |
|
|
19.22 |
% |
|
|
15.89 |
% |
|
|
19.40 |
% |
|
|
21.25 |
% |
|
|
16.09 |
% |
|
|
18.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
As of or for the Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 31, |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Dec. 31, |
|
Dec. 31, |
|
(in thousands, except per share and ratio data) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| NON-GAAP NET
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported net income
(GAAP) |
|
$ |
3,802 |
|
|
$ |
7,648 |
|
|
$ |
6,280 |
|
|
$ |
7,270 |
|
|
$ |
7,439 |
|
|
$ |
25,000 |
|
|
$ |
28,783 |
|
| Net (gains) losses on security
transactions (net of tax) |
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
| Recognition of employee
retention tax credit |
|
|
— |
|
|
|
(1,873 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,873 |
) |
|
|
| Net income (non-GAAP) |
|
$ |
3,831 |
|
|
$ |
5,775 |
|
|
$ |
6,280 |
|
|
$ |
7,270 |
|
|
$ |
7,439 |
|
|
$ |
23,156 |
|
|
$ |
28,783 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average basic and diluted
shares outstanding |
|
|
4,743 |
|
|
|
4,736 |
|
|
|
4,729 |
|
|
|
4,721 |
|
|
|
4,698 |
|
|
|
4,732 |
|
|
|
4,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported basic and diluted
earnings per share (GAAP) |
|
$ |
0.80 |
|
|
$ |
1.61 |
|
|
$ |
1.33 |
|
|
$ |
1.54 |
|
|
$ |
1.58 |
|
|
$ |
5.28 |
|
|
$ |
6.13 |
|
| Reported return on average
assets (GAAP) |
|
|
0.56 |
% |
|
|
1.14 |
% |
|
|
0.95 |
% |
|
|
1.12 |
% |
|
|
1.15 |
% |
|
|
0.94 |
% |
|
|
1.15 |
% |
| Reported return on average
equity (GAAP) |
|
|
8.63 |
% |
|
|
16.89 |
% |
|
|
13.97 |
% |
|
|
16.97 |
% |
|
|
18.36 |
% |
|
|
14.11 |
% |
|
|
15.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per
share (non-GAAP) |
|
$ |
0.81 |
|
|
$ |
1.21 |
|
|
$ |
1.33 |
|
|
$ |
1.54 |
|
|
$ |
1.58 |
|
|
$ |
4.89 |
|
|
$ |
6.13 |
|
| Return on average assets
(non-GAAP) |
|
|
0.57 |
% |
|
|
0.86 |
% |
|
|
0.95 |
% |
|
|
1.12 |
% |
|
|
1.15 |
% |
|
|
0.87 |
% |
|
|
1.15 |
% |
| Return on average equity
(non-GAAP) |
|
|
8.69 |
% |
|
|
12.75 |
% |
|
|
13.97 |
% |
|
|
16.97 |
% |
|
|
18.36 |
% |
|
|
13.07 |
% |
|
|
15.93 |
% |
Category: Financial
Source: Chemung Financial Corp
For further information
contact:Dale M. McKim, III, EVP and CFO
dmckim@chemungcanal.com Phone: 607-737-3714
Chemung Financial (NASDAQ:CHMG)
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Chemung Financial (NASDAQ:CHMG)
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