ELMIRA, N.Y. — Chemung Financial Corp. (NASDAQ: CHMG), the parent company of Chemung Canal Trust Company, recently reported third-quarter net income of $7.6 million, or $1.61 per share, up nearly 17 percent from $6.5 million, or $1.37 a share, in the year-ago quarter.
When adjusted for non-recurring items, Chemung Financial posted quarterly earnings of $1.21 per share, which beat the Zacks Equity Research consensus estimate of $1.18 a share. It is the fourth time in the past four quarters that Chemung Financial has beaten the estimate.
“The company again demonstrated solid financial performance in the third quarter,” Chemung Financial president and CEO Anders M. Tomson said in the banking company’s late October earnings report. “As evidenced by our loan growth, we are continuing to support our customers while competitors in the marketplace have reduced their lending activities. This customer-focused approach has served us well through our 190-year legacy.”
Commercial loans at Chemung Financial rose 9.9 percent as of Sept. 30 versus Dec. 31, 2022.
Net interest income dropped more than 5 percent to $18 million in the third quarter from $19 million in the year-ago quarter, due primarily to an increase of $8.9 million in interest expense on deposits, offset by increases of $7.4 million in interest income on loans, including of fees, and $600,000 in interest and dividend income on taxable securities.
Non-interest income at Chemung Financial was $7.8 million in the third quarter, up 56 percent from $5 million in the same quarter last year. That was primarily due to the recognition of a $2.4 million employee-retention tax credit during the quarter. Chemung Financial filed amended prior-period tax returns that reflected the credit during the third quarter.
Chemung Financial’s total assets stood at $2.71 billion as of Sept. 30, up from $2.65 billion on Dec. 31, 2022.
Chemung Financial Corporation subsidiary Chemung Canal Trust Company, a full-service community bank, operates 31 branches in New York and Northern Pennsylvania. It is also the parent company of CFS Group, Inc., a financial-services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation, and insurance, and of Chemung Risk Management, Inc., a captive insurance company based in Nevada.
Chemung Canal Trust Company marked its 190th anniversary on Oct. 22. Established in 1833, it is the state’s oldest independent community bank. It was formed after the Chemung Canal opened and a bank was necessary to support the growing community.
“The story of Chemung Canal Trust Company is fascinating,” Tomson said in a statement about the anniversary. “The waterway began just footsteps from our current main office, at the intersection of today’s Water Street and Clemens Center Parkway. This is a significant milestone, and we are proud to celebrate this journey, but we remain focused on anticipating and meeting the needs of our customers and communities for many years to come.”
The bank’s first office is now home to the Chemung Valley History Museum.