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CF

CHEMUNG FINANCIAL CORP (CHMG)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 EPS was $1.26, up 1.6% QoQ and down 14.9% YoY; EPS beat Wall Street by ~$0.06 (consensus $1.20), while revenue modestly missed ($24.6M actual vs $25.6M consensus) . Values retrieved from S&P Global.*
  • Net interest margin expanded 4 bps QoQ to 2.96% (up 23 bps YoY), as deposit costs declined and mix shifted, while non-interest expense fell 5% QoQ on lower benefits and salaries .
  • Credit quality remained sound: NPLs/loans rose slightly to 0.47% (0.43% in Q4) but ACL/loans increased to 1.07%; annualized net charge-offs were 0.05%, concentrated in indirect auto .
  • Canal Bank (WNY) gained traction: loans +14.9% and deposits +82.0% vs year‑end; management emphasized community model and funding discipline as drivers of NIM and growth .
  • Dividend raised to $0.32 in Q1 and maintained for Q2; continued capital build (TBV/share to $42.95) and better AOCI supported stronger equity ratios—potential medium-term multiple support .

What Went Well and What Went Wrong

What Went Well

  • NIM expansion and spread improvement: FTE NIM rose to 2.96% (+4 bps QoQ; +23 bps YoY); interest rate spread improved to 2.17% (+11 bps QoQ), as cost of interest-bearing liabilities fell 18 bps to 2.55% .
  • Expense discipline: Non-interest expense declined 5.1% QoQ to $16.9M, driven by lower benefits, salaries, and processing costs; efficiency ratio improved to 65.6% from 68.6% in Q4 .
  • Strategic growth in Canal Bank: “Loan growth in our newer Canal Bank division… underscores its strategic importance” with WNY loans +14.9% and deposits +82.0% since year-end .

What Went Wrong

  • YoY earnings pressure from provisioning: Provision for credit losses increased to $1.1M vs a $2.0M credit in Q1’24 due to annual CECL loss driver updates and weaker FOMC macro forecasts, weighing on YoY EPS .
  • Slight uptick in NPLs: Non-performing loans rose to $9.9M (0.47% of loans) from $9.0M (0.43%) in Q4, driven by isolated consumer and mortgage nonaccruals .
  • Fee softness QoQ: Non-interest income dipped 3.3% QoQ to $5.9M on lower wealth management fees (market-driven) and lower debit interchange; partially offset by other income .

Financial Results

Core results vs prior periods

MetricQ3 2024Q4 2024Q1 2025
EPS (diluted)$1.19 $1.24 $1.26
Net Interest Income ($M)$18.388 $19.821 $19.817
Non-Interest Income ($M)$5.919 $6.056 $5.889
Net Interest Margin (FTE)2.72% 2.92% 2.96%
Efficiency Ratio (Adjusted)67.69% 68.64% 65.64%
ROAA0.83% 0.85% 0.88%

Revenue composition (company measures)

MetricQ1 2024Q4 2024Q1 2025
Net Interest Income ($M)$18.089 $19.821 $19.817
Non-Interest Income ($M)$5.657 $6.056 $5.889

Note: Company “revenue” is typically discussed as net interest income plus non‑interest income.

KPIs and balance sheet quality

KPIQ3 2024Q4 2024Q1 2025
Loans / Deposits82.78% 86.42% 86.20%
NPLs / Total Loans0.52% 0.43% 0.47%
NPAs / Total Assets0.40% 0.35% 0.37%
ACL / Total Loans1.06% 1.03% 1.07%
Uninsured Deposits (% of Deposits)28.9% 27.2% 28.4%
Wealth Mgmt AUM/AUA ($B)$2.316 $2.212 $2.203

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Dividend/ShareQ1 2025$0.31 (Q4 2024 declared) $0.32 (declared in Q1) Raised
Quarterly Dividend/ShareQ2 2025$0.32 (Q1 2025) $0.32 (payable Jul 1, 2025) Maintained
Formal Financial Guidance2025None disclosedNone disclosedN/A

No explicit quantitative guidance on revenue, margins, expenses, tax, or segment outlook was provided in Q1 materials .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in our document set; themes below are based on company press releases for Q3’24, Q4’24, and Q1’25 .

TopicPrevious Mentions (Q-2: Q3 2024; Q-1: Q4 2024)Current Period (Q1 2025)Trend
NIM & funding costsEntering rate-cut cycle; NIM +6 bps QoQ to 2.72%; deposit cost pressures moderating NIM 2.96% (+4 bps QoQ), spread +11 bps as liability costs fell 18 bps Improving
Deposit mix & brokeredReduced reliance on brokered; seasonal municipal inflows; CD campaigns ongoing IB demand +$33.3M; MM +$30.4M; time -$25.0M; all brokered 3‑month, $80.8M Stable to improving core mix
Canal Bank expansionNew Williamsville branch opened; staffing ramping WNY Canal Bank: loans +14.9% and deposits +82.0% since YE Scaling
Credit quality/CECLLow NCOs; Q4 provision stable; YoY reserve down on 2024 loss-driver update Provision up on 2025 CECL update and weaker FOMC forecasts; NCOs low, mostly auto Slightly tighter
LiquidityStrong AFS as liquidity, FHLB capacity; BTFP repaid in Oct’24 $53.4M cash; $528.3M AFS ($341.2M unpledged); FHLB capacity $222.3M ($137.3M available) Solid
Capital/AOCITBV/share rising on AFS MV gains; TE/TA improved Book $47.49, TBV $42.95; TE/TA 7.44% Improving
Fee incomeFee increases driving WM and service charges WM and service charges higher YoY; QoQ WM dipped on markets Mixed QoQ, better YoY

Management Commentary

  • “First quarter results demonstrate steady ongoing delivery of the Corporation's strategic plan… Attentive balance sheet management has allowed us to effectively reduce funding costs while growing our asset base. Loan growth in our newer Canal Bank division… underscores its strategic importance” — Anders M. Tomson, President & CEO .
  • “Our community banking model serves as a source of strength, consistency, and dependability… We are confident these stakeholders will continue to meaningfully drive our Corporation's success” — Anders M. Tomson .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available; management remarks are sourced from the earnings press release and other company press releases .

Estimates Context

Q1 2025 vs S&P Global Consensus

MetricConsensusActual# EstimatesResult
EPS (Primary)$1.197*$1.26*3*Beat by ~$0.06*
Revenue ($)$25.62M*$24.61M*1*Miss by ~$1.0M*

Values retrieved from S&P Global.*
Note: Company-reported “revenue” is typically net interest income plus non-interest income; S&P “Revenue” definitions may differ from company presentation.

Key Takeaways for Investors

  • NIM and spread momentum continued as deposit costs fell and mix improved; watch for further liability re-pricing benefits if rate cuts continue .
  • Earnings quality solid: expense control drove better efficiency (65.6%) and supported QoQ EPS growth despite a higher CECL provision tied to model updates/macros .
  • Credit remains manageable: slightly higher NPLs but low loss content and higher reserve coverage; NCOs contained to indirect auto .
  • Growth vector validated: Canal Bank (WNY) shows outsized early loan/deposit growth; levered to commercial real estate and C&I opportunities .
  • Capital building and AOCI tailwinds improved TBV and equity ratios; dividend raised to $0.32 and maintained—total return profile supported .
  • Trade tactically around NIM trajectory and fee trends (wealth mgmt sensitivity to markets); medium-term thesis hinges on core deposit growth funding commercial expansion with disciplined credit .

Appendix: Additional Data Tables

Selected YoY comparisons (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025YoY Delta
EPS$1.48 $1.26 -14.9%
Net Interest Income ($M)$18.089 $19.817 +9.6%
Non-Interest Income ($M)$5.657 $5.889 +4.1%
Provision for Credit Losses ($M)$(2.040) $1.092 Higher (model/macro)
NIM (FTE)2.73% 2.96% +23 bps
Efficiency Ratio (Adjusted)70.07% 65.64% -443 bps

Liquidity and Capital (Q1 2025)

  • Cash & equivalents: $53.4M; AFS securities $528.3M ($341.2M unpledged); FHLB total capacity $222.3M ($137.3M available) .
  • Total equity/total assets: 8.16%; Tangible equity/tangible assets: 7.44%; BVPS $47.49; TBVPS $42.95 .

Dividends

  • Dividend increase announced Feb 19, 2025 to $0.32/share (payable Apr 1, 2025) .
  • Dividend of $0.32/share approved May 22, 2025 (payable Jul 1, 2025) .