ELMIRA, N.Y., April 18, 2025 (GLOBE NEWSWIRE) -- Chemung Financial Corporation, the parent company of Chemung Canal Trust Company, has announced its financial results for the first quarter of 2025. The Corporation reported a net income of $6.0 million, equivalent to $1.26 per share. This marks a slight increase compared to $5.9 million or $1.24 per share for the fourth quarter of 2024. However, it represents a decrease from the $7.1 million or $1.48 per share reported in the same quarter of the previous year, 2024.

Anders M. Tomson, President and CEO of Chemung Financial Corporation, commented, The results from the first quarter indicate a consistent implementation of our strategic plan. Our careful balance sheet management has enabled us to reduce funding costs while simultaneously expanding our asset base. The growth of our Canal Bank divisions loan portfolio during this quarter highlights its integral role within our operations.

Tomson further emphasized the strength of their community banking model, stating, It serves as a vital source of stability and trust for our communities, clients, and employees, regardless of external economic conditions. We are confident that these stakeholders will continue to play a significant role in driving our Corporations success.

First Quarter Highlights:

The Corporation also announced a modest dividend increase of $0.01, representing a 3.2% rise from the previous quarter, bringing the total dividends declared for the first quarter of 2025 to $0.32 per share.

In terms of financial metrics, the net interest margin expanded by four basis points from 2.92% in the previous quarter to 2.96% in the current quarter. The interest rate spread also saw an increase of eleven basis points, moving from 2.06% to 2.17% in the same timeframe.

Loan growth for the quarter was robust, with an annualized increase of 5.1%, which included a significant 10.5% growth in commercial loans. Notably, the Canal Bank division in Western New York experienced a remarkable 14.9% growth in loans compared to the previous year, while deposits soared by 82.0% during the same period.

Financial Breakdown:

In the first quarter of 2025, net interest income totaled $19.8 million, consistent with the previous quarter. This stability was attributed to a $1.0 million reduction in interest expenses on deposits, despite a $0.7 million decrease in interest income from loans. Average customer time deposit balances decreased by $25.9 million, reflecting a strategic shift towards lower-cost deposits amid fluctuating interest rates.

Interest income on loans decreased due to a slight drop in average yields on commercial loans, which was somewhat offset by an increase in average loan balances. Additionally, the Corporation recorded a provision for credit losses of $1.1 million for the quarter, up from $0.6 million in the prior quarter. This increase was primarily driven by annual updates to the expected credit loss (CECL) model and a downward adjustment in economic forecasts.

Despite these challenges, non-interest income remained relatively steady at $5.9 million compared to $6.1 million the prior quarter, with notable declines in wealth management fees and interchange revenues, offset by gains in other non-interest income.

On the expense side, non-interest expenses decreased to $16.9 million from $17.8 million in the last quarter, reflecting cost-saving measures in employee benefits and operational expenses.

Looking at asset quality, non-performing loans increased marginally to $9.9 million, or 0.47% of total loans, compared to $9.0 million, or 0.43% as of December 31, 2024. The organization continues to monitor loan delinquencies closely, especially in the commercial loan segment.

As of March 31, 2025, total assets rose to $2.797 billion, a slight increase from $2.776 billion at the end of the previous year, driven by loan growth and an uptick in cash and cash equivalents.

About Chemung Financial Corporation

Founded in 1833, Chemung Financial Corporation is a financial services holding company based in Elmira, New York. It operates 30 retail offices through its primary subsidiary, Chemung Canal Trust Company, which holds the distinction of being the oldest locally-owned community bank in New York State.

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