Chemung Financial Corp (CHMG) Reports Q3 2023 Net Income of $7.6 Million
Chemung Financial Corp (NASDAQ:CHMG) reported a net income of $7.6 million for Q3 2023, up from $6.5 million in Q3 2022.
Commercial loan growth approximated 9.9% on an annualized basis, and total deposits increased 3.5% from the prior quarter-end.
Non-performing loans to total loans decreased from 0.45% to 0.35%.
Dividends declared during the third quarter 2023 were $0.31 per share.
Chemung Financial Corp (NASDAQ:CHMG) announced its Q3 2023 earnings on October 25, 2023, reporting a net income of $7.6 million, or $1.61 per share. This represents a significant increase from the $6.5 million, or $1.37 per share, reported for the same period in 2022. The company's solid financial performance was driven by a 9.9% annualized growth in commercial loans and a 3.5% quarter-over-quarter increase in total deposits, which stood at $2.473 billion as of September 30, 2023.
Financial Highlights
Net interest income for Q3 2023 totaled $18.0 million, a decrease of 5.3% from the same period in the prior year, primarily due to an increase in interest expense on deposits. However, this was offset by increases in interest income on loans and interest and dividend income on taxable securities. The provision for credit losses decreased by $0.8 million compared to Q3 2022.
Non-interest income for Q3 2023 was $7.8 million, a significant increase from $5.0 million in Q3 2022, primarily due to the recognition of a $2.4 million employee retention tax credit. Non-interest expense for the quarter was $15.7 million, up from $14.6 million in the same period in 2022.
Asset Quality and Balance Sheet Activity
Non-performing loans totaled $6.8 million as of September 30, 2023, or 0.35% of total loans, compared to $8.2 million, or 0.45% of total loans as of December 31, 2022. Total assets were $2.708 billion as of September 30, 2023, an increase of 2.4% from December 31, 2022. The increase was primarily attributed to increases in loans and total cash and cash equivalents.
Chemung Financial Corp (NASDAQ:CHMG)'s total liabilities were $2.538 billion as of September 30, 2023, an increase of 2.4% from December 31, 2022. The increase was primarily due to increases in deposits and accrued interest payable and other liabilities. Total shareholders equity was $170.1 million as of September 30, 2023, an increase of 2.2% from December 31, 2022.
Looking Ahead
Chemung Financial Corp (NASDAQ:CHMG) continues to demonstrate solid financial performance, driven by its customer-focused approach and robust loan growth. The company's strong balance sheet and prudent risk management practices position it well for continued growth and profitability in the future.
Explore the complete 8-K earnings release (here) from Chemung Financial Corp for further details.
This article first appeared on GuruFocus.
