CHEMUNG FINANCIAL CORP 8-K Analysis & Summary – 2/21/2025

⚠️This is not investment advice.

⚠️ This is an experimental project and this report is for informational purposes only and should not be considered investment advice. Conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions. ⚠️

Chemung Financial Corp

8-K

Earnings Release (Preliminary), Guidance Update

Filing date:

02/21/2025

TLDR:

Chemung Financial Corporation discusses its strategies and recent financial performance in investor meetings, highlighting key takeaways such as strength in underlying businesses, a stable deposit base, solid credit quality, and contiguous geographic expansion, with fourth quarter 2024 EPS at $1.24 and net income at $5.9M.

ELI5:

Chemung Financial is meeting with investors to talk about how the company is doing. They’re showing a presentation that says the company is in good shape with money in the bank and chances to grow.

Accession #:

0001171843-25-001006

Published on

March 16, 2025

Analyst Summary

High customer engagement, stable deposit base, and ample liquidity.
Driving growth and profits through commercial and consumer relationships.
Valuable Wealth Management Business providing dependable non-interest income.
Solid and Stable Credit Quality with consistently low non-performing assets and charge-offs.
Contiguous Geographic Expansion in Albany and Buffalo markets.
Q4 2024 EPS: $1.24
Q4 2024 Net Income: $5.9M
Q4 2024 ROA: 0.85%
Q4 2024 ROE: 10.73%
Q4 2024 ROTE: 11.92%
Q4 2024 ACL – to – total loans: 1.03%
Q4 2024 Non – performing loans – to – total loans: 0.43%
Net interest income $19.8 million, or 10.7% higher than fourth quarter 2023
Net interest margin expanded 20 bp compared to the prior quarter, from 2.72% to 2.92%
Efficiency ratio 68.64%
Tangible common equity to tangible assets improved by 57 basis points from December 31, 2023 to 7.02%
Loans – to – deposits 86.42%
Total Loans: $2.071 billion at December 31, 2024
Total Deposits $2.397B

Opportunities and Risks

Expansion into Albany and Buffalo markets represents a significant opportunity for future growth.
Economic conditions, interest rates, credit risk, inflation, cybersecurity risks, bank failures, regulatory changes, and geopolitical conflicts.

Potential Implications

Stock Price

Positive investor perception from the presentation could lead to a short-term increase in stock price.
Uncertainty related to risk factors could limit stock price appreciation.

SEC Filing Report: Chemung Financial Corporation 8-K

Executive Summary

This report analyzes Chemung Financial Corporation’s (CHMG) 8-K filing dated February 21, 2025. The filing primarily concerns a Regulation FD Disclosure related to investor meetings and includes an investor presentation. The presentation highlights the company’s strategies and recent financial performance. Overall, the presentation paints a positive picture of the company, emphasizing its stable deposit base, solid credit quality, and growth opportunities. However, investors should independently verify the forward-looking statements and consider the risk factors outlined in the company’s previous filings.

Company Overview

Chemung Financial Corporation is a financial services holding company headquartered in Elmira, New York. Its primary subsidiary, Chemung Canal Trust Company, operates 30 retail offices in New York and Pennsylvania. The company also operates as Capital Bank in Albany and Canal Bank in Buffalo. It has a Trust and Wealth Management division with $2.2 billion in assets under management or administration. CHMG is listed on the NASDAQ Global Select Market (Ticker: CHMG).

Detailed Analysis

Item 7.01: Regulation FD Disclosure

The 8-K filing announces that Chemung Financial Corporation’s management will be conducting one-on-one meetings with institutional investors on February 25, 2025. The purpose of these meetings is to discuss the Corporation’s strategies and recent financial performance. Dale M. McKim III, Chief Financial Officer and Treasurer, is scheduled to present. The investor presentation used in these meetings is available on the company’s website. The filing explicitly states that information on the company’s website is not incorporated by reference into the 8-K report.

Investor Presentation Analysis

The investor presentation (Exhibit 99.1) provides a snapshot of Chemung Financial Corporation’s key strategies, financial highlights, and market positioning. Key takeaways from the presentation include:

Continued Strength and Momentum: High customer engagement, stable deposit base, and ample liquidity.
Community Banking Flywheel: Driving growth and profits through commercial and consumer relationships.
Valuable Wealth Management Business: Providing dependable non-interest income.
Solid and Stable Credit Quality: Consistently low non-performing assets and charge-offs.
Contiguous Geographic Expansion: Expansion in Albany and Buffalo markets.

Financial Highlights (Q4 2024):

EPS: $1.24
Net Income: $5.9M
ROA: 0.85%
ROE: 10.73%
ROTE: 11.92%
ACL – to – total loans: 1.03%
Non – performing loans – to – total loans: 0.43%
Net interest income $19.8 million, or 10.7% higher than fourth quarter 2023
Net interest margin expanded 20 bp compared to the prior quarter, from 2.72% to 2.92%
Efficiency ratio 68.64%
Tangible common equity to tangible assets improved by 57 basis points from December 31, 2023 to 7.02%
Loans – to – deposits 86.42%

Loan Portfolio:

Total Loans: $2.071 billion at December 31, 2024
Commercial loans originated in 2024: $329.4MM
Indirect loans originated in 2024: $43.4MM
Home Equity loans originated in 2024: $30.8MM

Deposit Composition:

Total Deposits $2.397B; a decrease of $32.5 million from December 31, 2023
Brokered Deposits $92.2 million; a decrease of $50.6 million from December 31, 2023

Risk Factors:

The presentation includes a Safe Harbor Statement, cautioning investors about forward-looking statements. It highlights potential risks including economic conditions, interest rates, credit risk, inflation, cybersecurity risks, bank failures, regulatory changes, and geopolitical conflicts. Investors are directed to the company’s SEC filings, particularly the “Risk Factors” section in the 2023 Annual Report on Form 10-K, for a comprehensive understanding of these risks.

Geographic Expansion:

The company is actively expanding its presence in the Albany and Buffalo markets. The presentation highlights the launch of the Canal Bank brand in Western New York and the opening of a new regional banking center in Williamsville, NY.

Item 9.01: Financial Statements and Exhibits

The filing includes the investor presentation (Exhibit 99.1) and the Cover Page Interactive Data File (Exhibit 104).

Conclusion & Actionable Insights

Chemung Financial Corporation’s 8-K filing and accompanying investor presentation present a generally positive outlook for the company. The company appears to be executing its growth strategy effectively, maintaining solid credit quality, and managing its deposit base. The expansion into Albany and Buffalo markets represents a significant opportunity for future growth. However, investors should carefully consider the risk factors outlined in the company’s SEC filings and conduct their own due diligence before making any investment decisions.

Key Considerations:

Forward-Looking Statements: Exercise caution when interpreting forward-looking statements, as actual results may differ materially.
Risk Factors: Review the company’s 10-K filing for a comprehensive understanding of potential risks.
Market Expansion: Monitor the progress of the company’s expansion efforts in Albany and Buffalo.
Net Interest Margin: Monitor the net interest margin, which has been impacted by low yielding mortgage-backed securities.

Chemung Financial Corporation Financial Analysis – February 21, 2025

1. Financial Ratio and Metric Analysis

Profitability

Gross Profit Margin

Ratio/Metric: Not applicable for a financial institution.

Operating Profit Margin

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Net Profit Margin

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Return on Assets (ROA)

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Return on Equity (ROE)

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Earnings Per Share (EPS) – Basic and Diluted

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Liquidity

Current Ratio

Ratio/Metric: Not directly applicable for a financial institution.

Quick Ratio (Acid-Test Ratio)

Ratio/Metric: Not directly applicable for a financial institution.

Cash Ratio

Ratio/Metric: Not directly applicable for a financial institution.

Solvency/Leverage

Debt-to-Equity Ratio

Ratio/Metric: Not directly available from the provided information. Requires balance sheet data.

Debt-to-Assets Ratio

Ratio/Metric: Not directly available from the provided information. Requires balance sheet data.

Interest Coverage Ratio (Times Interest Earned)

Ratio/Metric: Not directly available from the provided information. Requires income statement data.

Activity/Efficiency

Inventory Turnover

Ratio/Metric: Not applicable for a financial institution.

Days Sales Outstanding (DSO)

Ratio/Metric: Not applicable for a financial institution.

Days Payable Outstanding (DPO)

Ratio/Metric: Not applicable for a financial institution.

Asset Turnover

Ratio/Metric: Not directly available from the provided information. Requires income statement and balance sheet data.

Valuation

Price-to-Earnings Ratio (P/E)

Ratio/Metric: Requires EPS data. Since EPS is not provided, we cannot calculate the P/E ratio. However, given the stock price of $51.23 (2025-02-21), if we had an annual EPS figure, we could calculate this.

Price-to-Book Ratio (P/B)

Ratio/Metric: Requires book value per share data, which is not provided.

Price-to-Sales Ratio (P/S)

Ratio/Metric: Requires revenue per share data, which is not provided.

Enterprise Value to EBITDA (EV/EBITDA)

Ratio/Metric: Requires EBITDA data, which is not provided. Enterprise Value would be Market Cap + Total Debt – Cash. Market Cap is Stock Price * Shares Outstanding. We have the stock price ($51.23), but not shares outstanding, debt, or cash.

Growth Rates

Revenue Growth

Ratio/Metric: Not directly available from the provided information. Requires revenue data from current and prior periods.

Net Income Growth

Ratio/Metric: Not directly available from the provided information. Requires net income data from current and prior periods.

EPS Growth

Ratio/Metric: Not directly available from the provided information. Requires EPS data from current and prior periods.

Other Relevant Metrics (from 8-K, EX-99.1, etc.)

The 8-K filing indicates an investor presentation (Exhibit 99.1) on February 25, 2025. This presentation likely contains key performance indicators (KPIs) and other financial metrics that would be relevant for analysis. Without access to the presentation, a detailed analysis of company-specific KPIs is not possible.

2. Commentary

Based on the limited information provided in this 8-K filing, a comprehensive financial analysis of Chemung Financial Corporation is not possible. The filing primarily indicates an upcoming investor presentation. Key financial ratios and metrics related to profitability, liquidity, solvency, efficiency, and valuation cannot be calculated without access to the company’s financial statements (income statement, balance sheet, and cash flow statement) and the investor presentation. The investor presentation (Exhibit 99.1) is crucial for understanding the company’s performance and future outlook.