Demo
CHMG Nasdaq· Chemung Financial Corp
FundamentalsNews digest Peer analysis
Login
CHMG Nasdaq· Chemung Financial Corp
Earnings report Q3 2023

Chemung Financial Corporation Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Chemung Financial Corporation reported total interest and dividend income of $29.02 million for the three months ended September 30, 2023, representing a significant increase from $21.00 million in the same period last year. This growth was primarily driven by higher interest income from loans, including fees, which amounted to $25.03 million, compared to $17.67 million in the prior year quarter. Additionally, taxable securities generated $3.54 million in interest income, up from $2.98 million in the same period last year. Tax exempt securities contributed $0.26 million, slightly lower than the $0.27 million reported in the previous year's quarter. Interest-earning deposits also saw an increase, generating $0.19 million in interest income, compared to $0.08 million in the same period last year.

Strengths

Chemung Financial Corporation demonstrated strong revenue growth in the latest quarter, driven by increased interest income from loans and securities. The company's loan portfolio performed well, resulting in higher interest income from loans, including fees. This growth can be attributed to the company's focus on expanding its loan portfolio and effectively managing interest rates. Additionally, the increase in interest income from taxable securities reflects the company's ability to generate returns from its investment activities. Management comments highlighted the positive impact of the company's strategic initiatives and strong credit quality on its financial performance.

Challenges

Despite the strong revenue growth, Chemung Financial Corporation faced challenges in managing its interest expense. The company reported interest expense of $11.00 million for the quarter, compared to $2.01 million in the same period last year. This increase was primarily due to higher interest paid on deposits, which amounted to $10.72 million, compared to $1.81 million in the prior year quarter. The company also incurred higher interest expense on borrowed funds, totaling $0.28 million, up from $0.20 million in the previous year's quarter. These higher interest expenses impacted the company's net interest income.

Noteworthy

It is noteworthy that Chemung Financial Corporation reported a provision for credit losses of $0.45 million in the latest quarter, compared to a provision of $1.26 million in the same period last year. This decrease in the provision for credit losses indicates improved credit quality and a lower risk of loan defaults. The company's management highlighted the positive impact of its proactive credit risk management strategies and the overall improvement in the economic environment on the reduction in credit losses.

Summary

Chemung Financial Corporation delivered strong revenue growth in the latest quarter, primarily driven by increased interest income from loans and securities. The company's loan portfolio performed well, resulting in higher interest income from loans, including fees. However, the company faced challenges in managing its interest expense, which impacted its net interest income. Despite these challenges, Chemung Financial Corporation demonstrated effective credit risk management, as reflected in the decrease in the provision for credit losses. Overall, the company's financial performance in the latest quarter reflects its ability to generate revenue growth and effectively manage credit risk.

Source documents

Form 10-Q  filed on Nov 09, 2023
91 pages scanned

Reference data

Company financials Q3 revenue 21.5M
Analyst estimates Q3 EPS missed by -27.68%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.