Chemung Financial Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting several key performance metrics and strategic developments.

As of September 30, 2024, total assets increased to $2.774 billion from $2.711 billion at the end of 2023. The corporation's cash and cash equivalents rose significantly to $80.4 million, up from $36.8 million. Loans, net of deferred loan fees, also saw an increase, reaching $2.029 billion compared to $1.973 billion at the end of 2023. Total deposits grew slightly to $2.451 billion, up from $2.429 billion, driven by increases in customer time deposits and interest-bearing demand deposits.

For the three months ended September 30, 2024, Chemung Financial reported interest and dividend income of $32.4 million, an increase from $29.0 million in the same period of 2023. Net interest income for the quarter was $18.4 million, a modest increase from $18.0 million year-over-year. However, net income for Q3 2024 decreased to $5.7 million, or $1.19 per share, down from $7.6 million, or $1.61 per share, in Q3 2023. The decline in net income was attributed to a decrease in non-interest income, which fell to $5.9 million from $7.8 million, alongside increased non-interest expenses.

For the nine months ended September 30, 2024, net income totaled $17.8 million, or $3.72 per share, compared to $21.2 million, or $4.48 per share, for the same period in 2023. The decrease in net income was primarily due to lower net interest income and non-interest income, despite a reduction in the provision for credit losses.

The corporation's allowance for credit losses decreased to $21.4 million from $22.5 million at the end of 2023, reflecting an annual review and update of loss drivers in the CECL model. Non-performing loans totaled $10.5 million, or 0.52% of total loans, slightly up from $10.4 million, or 0.53% of total loans, at the end of 2023.

Strategically, Chemung Financial opened a new full-service branch in Williamsville, New York, in October 2024, and received regulatory approval to convert its previous branch in Clarence into an administrative office. The corporation also plans to consolidate its office in Ithaca, New York, effective November 15, 2024.

Overall, while Chemung Financial Corporation experienced growth in assets and loans, it faced challenges in profitability and non-interest income, prompting strategic adjustments to enhance operational efficiency and market presence.