```markdown [Q2 2025 Results and Strategic Overview](index=1&type=section&id=Second%20Quarter%20Highlights) Chemung Financial Corporation reported a **$6.5 million net loss** for Q2 2025 due to a strategic balance sheet repositioning Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | ($6.5 million) | $6.0 million | $5.0 million | | Diluted EPS | ($1.35) | $1.26 | $1.05 | - The Corporation executed a balance sheet repositioning by issuing **subordinated debt** and selling a significant portion of its **securities portfolio**. The CEO stated these actions strengthen **regulatory capital**, improve **commercial real estate concentration ratios**, and enhance flexibility for funding **loan growth**[2](index=2&type=chunk) Q2 2025 Strategic and Non-GAAP Highlights | Highlight | Value/Metric | | :--- | :--- | | Subordinated Notes Issued | $45.0 million | | Securities Sold (Book Value) | $245.5 million | | Realized Pre-tax Loss on Sale | $17.5 million | | Non-GAAP Net Income | $6.3 million | | Non-GAAP EPS | $1.31 | | Net Interest Margin | 3.05% (+9 bps QoQ) | | Dividends Declared per Share | $0.32 | [Quarter-over-Quarter Financial Analysis (Q2 2025 vs. Q1 2025)](index=1&type=section&id=2nd%20Quarter%202025%20vs%201st%20Quarter%202025) Net interest income increased by **$1.0 million**, but a **$17.5 million** securities loss led to a non-interest loss [Net Interest Income (QoQ)](index=1&type=section&id=Net%20Interest%20Income) Net interest income rose by **$1.0 million** to **$20.8 million**, driven by higher loan income and expanded **3.05%** net interest margin - **Net interest income increased by $1.0 million (5.0%)** to **$20.8 million**, driven by higher interest income on loans and interest-earning deposits, partially offset by lower income from taxable securities and higher expense on borrowed funds[6](index=6&type=chunk) - The increase in loan interest income was due to a **$30.8 million** rise in average loan balances, mainly in commercial real estate, and a **12 basis point** increase in the average yield on total loans[7](index=7&type=chunk) - Fully taxable equivalent net interest margin was **3.05%**, up from **2.96%** in Q1 2025. The average yield on interest-earning assets increased by **11 basis points** to **4.83%**, while the cost of funds rose by only **2 basis points** to **1.94%**[14](index=14&type=chunk) [Provision for Credit Losses (QoQ)](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses was **$1.1 million**, consistent with prior quarter, due to loan growth and economic forecasts - The provision for credit losses was **$1.1 million**, in line with the prior quarter. This was largely driven by **commercial loan growth** and changes in **macroeconomic forecasts** (increased unemployment, decline in GDP growth)[15](index=15&type=chunk) [Non-Interest Income (QoQ)](index=2&type=section&id=Non-Interest%20Income) The Corporation recorded a **$10.7 million** non-interest loss, driven by a **$17.5 million** pre-tax loss on securities - A pre-tax loss of **$17.5 million** on the sale of available-for-sale securities resulted in an overall negative non-interest income of **$10.7 million** for the quarter[16](index=16&type=chunk) - The securities sale was a **strategic move** to pay off more expensive **wholesale funding** and fund **future loan growth**. The securities sold had a weighted average book yield of approximately **2.1%**[17](index=17&type=chunk) - The Corporation also recognized a **$0.6 million** gain on the sale of a branch property in Ithaca, New York[18](index=18&type=chunk) [Non-Interest Expense (QoQ)](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense increased by **$0.9 million** to **$17.8 million**, primarily due to higher salaries and professional costs - **Non-interest expense increased by $0.9 million (5.3%)** to **$17.8 million**, driven by increases in salaries and wages (**$0.4 million**), pension and other employee benefits (**$0.2 million**), and professional services (**$0.2 million**)[19](index=19&type=chunk) - The increase in salaries was due to a **higher number of full-time equivalent employees**, including new staff in the Western New York division, and adjustments related to the **deferred compensation plan**[20](index=20&type=chunk) [Income Tax Expense (QoQ)](index=3&type=section&id=Income%20Tax%20Expense) A tax benefit of **$2.4 million** was recorded, a **$4.1 million** decrease from prior quarter, due to securities loss - The Corporation recorded a tax benefit of **$2.4 million**, compared to a tax expense of **$1.7 million** in Q1 2025. The change was primarily due to the **net loss on the sale of available-for-sale securities**[21](index=21&type=chunk) [Year-over-Year Financial Analysis (Q2 2025 vs. Q2 2024)](index=3&type=section&id=2nd%20Quarter%202025%20vs%202nd%20Quarter%202024) Net interest income grew by **$3.0 million** to **$20.8 million**, driven by loan growth and decreased deposit expense [Net Interest Income (YoY)](index=3&type=section&id=Net%20Interest%20Income) Net interest income increased by **$3.0 million** to **$20.8 million**, driven by higher loan income and lower deposit expense - **Net interest income increased by $3.0 million (16.9%) YoY**, driven by higher interest income on loans (**$1.9 million**) and interest-earning deposits (**$0.5 million**), and a decrease in interest expense on deposits (**$1.6 million**)[22](index=22&type=chunk) - Average total loan balances grew by **$98.7 million**, concentrated in commercial loans. The average yield on total loans increased by **9 basis points**[23](index=23&type=chunk) - The total average cost of interest-bearing deposits decreased by **41 basis points**, from **2.86%** in Q2 2024 to **2.45%** in Q2 2025[27](index=27&type=chunk) - Fully taxable equivalent net interest margin was **3.05%**, up from **2.66%** in Q2 2024. The total cost of funds decreased by **26 basis points** to **1.94%**[29](index=29&type=chunk) [Provision for Credit Losses (YoY)](index=4&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses was **$1.1 million**, an increase of **$0.2 million** from prior year, due to loan growth - The provision for credit losses increased by **$0.2 million** to **$1.1 million** compared to Q2 2024. This was due to **stronger loan growth** (**$34.8 million**) and **more negative economic forecasts** (unemployment and GDP) in the current period[30](index=30&type=chunk) [Non-Interest Income (YoY)](index=4&type=section&id=Non-Interest%20Income) A non-interest loss of **$10.7 million** was recorded, primarily due to the **$17.5 million** pre-tax loss on securities - A pre-tax loss of **$17.5 million** on securities sales resulted in a total non-interest loss of **$10.7 million**, compared to a **$5.6 million** income in Q2 2024. Recurring non-interest income increased by **$0.6 million**[31](index=31&type=chunk) - The increase in recurring income was driven by **fee schedule increases** for service charges and **wealth management**, which were implemented in the second half of 2024[32](index=32&type=chunk) [Non-Interest Expense (YoY)](index=4&type=section&id=Non-Interest%20Expense) Non-interest expense rose by **$1.6 million** to **$17.8 million**, driven by higher salaries and data processing - **Non-interest expense increased by $1.6 million (9.9%) YoY**, driven by higher salaries and wages (**$0.8 million**), data processing (**$0.3 million**), and professional services (**$0.2 million**)[33](index=33&type=chunk) - The increase in salaries was due to **merit-based increases** and **additional staffing**. The rise in data processing was related to **core service provider expenses** and **Canal Bank operations**[34](index=34&type=chunk) [Income Tax Expense (YoY)](index=4&type=section&id=Income%20Tax%20Expense) The Corporation recorded a tax benefit of **$2.4 million**, a **$3.7 million** decrease from Q2 2024, due to securities loss - A tax benefit of **$2.4 million** was recorded, compared to a tax expense of **$1.3 million** in Q2 2024. The decrease was primarily due to the **net loss on the sale of securities**[35](index=35&type=chunk) [Asset Quality](index=4&type=section&id=Asset%20Quality) Asset quality improved as of June 30, 2025, with non-performing loans decreasing to **$8.2 million** and allowance increasing Asset Quality Indicators | Metric | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Non-performing loans | $8.2 million | $9.0 million | | NPLs to Total Loans | 0.39% | 0.43% | | Non-performing assets | $8.4 million | $9.6 million | | NPAs to Total Assets | 0.30% | 0.35% | - Annualized net charge-offs to total average loans were **0.19%** for Q2 2025, an increase from **0.05%** in Q1 2025, largely due to a **$0.7 million** charge-off on a previously reserved unsecured **commercial and industrial loan**[38](index=38&type=chunk) Allowance for Credit Losses | Metric | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Allowance for credit losses on loans | $22.7 million | $21.4 million | | Allowance to Total Loans | 1.06% | 1.03% | | Allowance to Non-performing Loans | 275.16% | 238.87% | [Balance Sheet Activity](index=5&type=section&id=Balance%20Sheet%20Activity) Total assets increased by **$76.3 million** to **$2.85 billion**, driven by cash and loan growth, liabilities grew - **Total assets increased by $76.3 million (2.7%)** to **$2.852 billion** since year-end 2024. The increase was driven by a **$273.0 million** rise in cash and cash equivalents and **$61.0 million** in net **loan growth**, offset by a **$244.1 million** decrease in securities available for sale[40](index=40&type=chunk) - **Total liabilities increased by $56.7 million (2.2%)** to **$2.618 billion**. This was driven by a **$72.1 million** increase in total deposits and **$44.1 million** in new **subordinated debt**, partially offset by a **$54.3 million** decrease in advances and other debt[45](index=45&type=chunk) - **Total shareholders' equity increased by $19.7 million (9.2%)** to **$235.0 million**. The increase was primarily due to a **$22.4 million** decrease in **accumulated other comprehensive loss**, largely from the **reclassification of losses** from the **securities sale**[49](index=49&type=chunk) Capital Ratios and Book Value | Metric | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Total equity to total assets | 8.24% | 7.76% | | Tangible equity to tangible assets | 7.53% | 7.02% | | Book value per share | $48.85 | $45.13 | | Tangible book value per share | $44.31 | $40.55 | [Liquidity](index=6&type=section&id=Liquidity) The Corporation maintains strong liquidity with **$320.1 million** in cash, ample resources, and is reducing wholesale funding - The Corporation maintains strong liquidity with cash and cash equivalents of **$320.1 million** as of June 30, 2025, largely from the proceeds of the **securities sale**[51](index=51&type=chunk) - As of June 30, 2025, the Bank had **$115.2 million** in available borrowing capacity at the **Federal Home Loan Bank of New York**[52](index=52&type=chunk) - Uninsured deposits totaled **$694.3 million**, or **28.1%** of total deposits, as of June 30, 2025. This includes **$187.4 million** of **municipal deposits** collateralized by **pledged assets**[53](index=53&type=chunk) - As part of its strategic repositioning, the Corporation paid off **$100.0 million** in **brokered deposits** that matured in early July 2025, reducing its reliance on **wholesale funding sources**[54](index=54&type=chunk) [Other Items](index=7&type=section&id=Other%20Items) Wealth Management Group's assets under management grew by **4.5%** to **$2.313 billion**, and a branch was sold for a **$0.6 million** gain - Total assets under management in the Wealth Management Group increased by **$101.0 million (4.5%)** to **$2.313 billion** as of June 30, 2025, compared to year-end 2024[55](index=55&type=chunk) - In April 2025, the Corporation sold a previous branch property in Ithaca, New York, resulting in a **pre-tax gain** of **$0.6 million**[56](index=56&type=chunk) - As of June 30, 2025, the Corporation had **200,816 shares** remaining under its **stock repurchase program**. No shares were repurchased during the second quarter of 2025[57](index=57&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements, including Balance Sheets, Statements of Income, and Net Interest Income Analysis Consolidated Balance Sheets (Unaudited) | (in thousands of dollars) | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Total cash and cash equivalents | $320,051 | $47,035 | | Total investment securities | $294,841 | $541,367 | | Loans, net | $2,109,749 | $2,050,031 | | **Total assets** | **$2,852,488** | **$2,776,147** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total deposits | $2,468,962 | $2,396,883 | | Subordinated debt, net | $44,146 | $— | | **Total liabilities** | **$2,617,522** | **$2,560,838** | | **Total shareholders' equity** | **$234,966** | **$215,309** | Consolidated Statements of Income (Unaudited) - Three Months Ended June 30 | (in thousands of dollars, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | Net interest income | $20,808 | $17,761 | | Provision for credit losses | $1,145 | $879 | | Non-interest income | ($10,705) | $5,598 | | Non-interest expense | $17,769 | $16,219 | | Income before income tax expense | ($8,811) | $6,261 | | **Net income (loss)** | **($6,452)** | **$4,987** | | **Diluted earnings per share** | **($1.35)** | **$1.05** | [GAAP to Non-GAAP Reconciliations](index=16&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, including fully taxable equivalent net interest income, adjusted efficiency ratio, and tangible book value Non-GAAP Net Income Reconciliation (Q2 2025) | (in thousands of dollars, except per share data) | Amount | | :--- | :--- | | Reported net income (GAAP) | ($6,452) | | Net losses on security transactions (net of tax) | $13,237 | | Net gain on sale of branch property (net of tax) | ($463) | | **Net income (non-GAAP)** | **$6,322** | | Reported basic and diluted EPS (GAAP) | ($1.35) | | **Basic and diluted EPS (non-GAAP)** | **$1.31** | Tangible Book Value Reconciliation (June 30, 2025) | (in thousands of dollars, except per share data) | Amount | | :--- | :--- | | Total shareholders' equity (GAAP) | $234,966 | | Less: intangible assets | ($21,824) | | **Tangible equity (non-GAAP)** | **$213,142** | | Book value per share (GAAP) | $48.85 | | **Tangible book value per share (non-GAAP)** | **$44.31** | Adjusted Efficiency Ratio (Q2 2025) | Metric | Value | | :--- | :--- | | Efficiency ratio (unadjusted) | 175.88% | | **Efficiency ratio (adjusted, non-GAAP)** | **65.69%** | ```

Core Points - Chemung Financial Corporation reported a net loss of $6.5 million, or $1.35 per share, for Q2 2025, contrasting with net income of $6.0 million, or $1.26 per share, in Q1 2025, and net income of $5.0 million, or $1.05 per share, in Q2 2024 [1] - The company undertook a balance sheet repositioning by issuing subordinated debt and selling a significant portion of its securities portfolio, which is expected to strengthen its regulatory capital position and improve funding flexibility [2] - Core operating results were solid, reflecting the resilience of the customer base and a disciplined organizational approach [3] Financial Performance - Net interest income for Q2 2025 was $20.8 million, up from $19.8 million in Q1 2025, marking a 5.0% increase driven by higher interest income on loans and interest-earning deposits [6] - Interest income on loans increased due to a $30.8 million rise in average loan balances and a 12 basis point increase in average yield on total loans [7] - Interest income on interest-earning deposits rose by $46.2 million in average balances, largely from proceeds of the securities sale and subordinated debt issuance [8] Balance Sheet Activity - Total assets increased to $2.852 billion as of June 30, 2025, up from $2.776 billion at the end of 2024, driven by increases in cash and cash equivalents and loans [38] - Total liabilities rose to $2.618 billion, primarily due to increases in total deposits and subordinated debt [42] - Total shareholders' equity increased to $235.0 million, reflecting a decrease in accumulated other comprehensive loss [46] Non-Interest Income and Expenses - The company recognized a pre-tax loss of $17.5 million on the sale of available for sale securities, leading to negative non-interest income of $10.7 million for the quarter [15] - Non-interest expense for Q2 2025 was $17.8 million, an increase of 5.3% from the prior quarter, driven by higher salaries, benefits, and professional services [18] Asset Quality - Non-performing loans totaled $8.2 million, or 0.39% of total loans, a decrease from $9.0 million, or 0.43%, at the end of 2024 [34] - The allowance for credit losses on loans was $22.7 million, reflecting an increase due to stronger loan growth and changes in economic forecasts [37] Market Position - The market value of total assets under management in the Wealth Management Group increased to $2.313 billion as of June 30, 2025, up from $2.212 billion at the end of 2024 [52] - The company completed the sale of a branch property, resulting in a pre-tax gain of $0.6 million, as part of its ongoing rationalization of physical distribution [53]

Key Takeaways Utilize a Zacks screen to help find some of the best #1 (Strong Buy) stocks. Buy under-the-radar financial stock CHMG before it breaks out.JPMorgan Chase beat earnings estimates on Tuesday morning as JPM and other Wall Street titans kicked off the second quarter reporting season. The overall earnings outlook remains strong, and investors have shaken off the new tariff war to send the stock market to all-time highs.Wall Street jumped back into the risk end of the market in full force, pushing ...

Chemung Financial (CHMG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock ...

Chemung Financial (CHMG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this financial holding company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend ...

Here is the stock with buy rank and strong value characteristics for investors to consider today, June 13th:  Chemung Financial Corp (CHMG) : This bank holding company which is engaged thru the bank in full-service commercial and consumer banking and trust business, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.1% over the last 60 days.Chemung Financial has a price-to-earnings ratio (P/E) of 8.85 compared with 10.80 for the in ...

Here is the stock with buy rank and strong income characteristics for investors to consider today, June 13th:Chemung Financial Corp (CHMG) : This bank holding company which is engaged thru the bank in full-service commercial and consumer banking and trust business, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.1% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2.6%, compared with the industry average of 2.4%. See the full list of ...

Financial Data and Key Metrics Changes - The company reported strong results for FY 2024, which were included in the annual meeting documents [4] - The meeting discussed the approval of the compensation of named executive officers and the 2025 equity incentive plan [14] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided during the meeting [20] Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed during the meeting [20] Company Strategy and Development Direction and Industry Competition - The company is focused on continued engagement and growth in 2025, indicating a strategic direction towards expansion and shareholder value [5] Management Comments on Operating Environment and Future Outlook - Management expressed pride in the company's results for 2024 and emphasized the importance of shareholder support [4][5] - No specific comments on the operating environment or future outlook were provided during the meeting [20] Other Important Information - The meeting included the election of four directors for a three-year term and the ratification of the independent registered public accounting firm for FY 2025 [8][19] Q&A Session Summary - No questions were posed during the Q&A session [20]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...