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]
Chemung Financial Corporation Reports Second Quarter 2025 Results