Chemung Financial (CMHG) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $7.8 million ($1.62 per share), up 36% year-over-year and reversing a prior quarter loss; nine-month net income was $7.4 million ($1.53 per share), down 59% due to a $17.5 million securities loss in Q2 2025.

• Adjusted nine-month net income (excluding nonrecurring items) was $20.1 million ($4.19 per share), up 13% year-over-year.

• Results reflect successful balance sheet repositioning, with improved net interest income and margin, and continued strong credit quality.

• Dividend increased by $0.02 per share in Q3, totaling $0.34 per share for the quarter.

Financial highlights

• Net interest income rose 23% year-over-year in Q3 2025 to $22.7 million, with net interest margin up to 3.45% from 2.72% a year ago.

• Non-interest income for Q3 2025 was $6.1 million, up 3% year-over-year; nine-month non-interest income was $1.3 million, down 93% due to the securities loss.

• Non-interest expense increased 7% year-over-year in Q3 2025, mainly from higher compensation costs, but was down 1.1% sequentially.

• Loans grew 6.3% since year-end to $2.20 billion, led by commercial real estate; deposits decreased 1.6% to $2.36 billion, reflecting a strategic reduction in brokered deposits.

• Allowance for credit losses increased to $23.6 million (1.07% of loans), with net charge-offs of $1.3 million for the nine months.

• Book value per share rose to $50.98, and tangible book value per share to $46.44 at quarter-end.

Outlook and guidance

• Management expects continued loan growth, especially in commercial real estate, and stable credit quality, with a focus on relationship banking.

• The company remains focused on core deposit growth, prudent expense management, and long-term value creation.

• No material changes to risk factors or forward-looking statements since the last annual report.