Chemung Financial (CMHG) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $6.5M for Q2 2025, driven by a $17.5M loss on securities sales, offset by a $0.6M gain on branch property sale.

• Excluding nonrecurring items, adjusted net income was $6.3M for Q2 2025, up 26.8% year-over-year, reflecting solid core operating results.

• Issued $45M in subordinated debt and sold $245.5M in securities to strengthen capital and fund loan growth.

• Wealth Management Group assets under management increased 4.5% since year-end 2024, reflecting market improvements.

Financial highlights

• Net interest income for Q2 2025 was $20.8M, up 17.2% year-over-year; net interest margin rose to 3.05%.

• Non-interest income was a loss of $10.7M, mainly due to the $17.5M securities sale loss.

• Non-interest expense increased 9.9% year-over-year to $17.8M, driven by higher compensation and professional services.

• Allowance for credit losses increased to $22.7M, or 1.06% of total loans.

• Total assets grew 2.7% since year-end to $2.85B; loans rose 2.9% to $2.13B; deposits up 3.0% to $2.47B.

Outlook and guidance

• Management expects proceeds from securities sales and subordinated debt to fund future organic loan growth and lower funding costs.

• Anticipates continued focus on commercial lending, especially in key expansion markets.

• Ongoing monitoring of economic conditions and credit quality, with allowance for credit losses sensitive to macroeconomic forecasts.

• Management remains optimistic about core operating performance and principal initiatives.