Chemung Financial Corporation Reports Fourth Quarter 2025 Net Income of $7.7 million, or $1.61 per share & Annual Financial Results

Core Insights - Chemung Financial Corporation reported a net income of $7.7 million for Q4 2025, slightly down from $7.8 million in Q3 2025, but up from $5.9 million in Q4 2024, with annual net income for 2025 at $15.1 million, impacted by a $17.5 million loss on securities sales [1][10][15] Financial Performance - Net interest income for 2025 was $87.2 million, an increase of $13.1 million or 17.7% from 2024, driven by a decrease in interest expense on deposits and increases in interest income on loans [6][10] - The net interest margin increased by 50 basis points to 3.26% for 2025 compared to 2.76% in 2024, with a Q4 2025 margin of 3.61%, up from 3.45% in Q3 2025 [10][13][26] - Annual loan growth in 2025 was $198.1 million, or 9.6%, with commercial loans growing by $217.4 million, or 14.3% [10][50] Credit Quality - Provision for credit losses for 2025 was $4.4 million, compared to a credit of $46 thousand in 2024, reflecting updated loss drivers and increased loan growth [14] - Non-performing loans decreased to $7.9 million, or 0.35% of total loans, from $9.0 million, or 0.43% in 2024 [44] - Total loan delinquencies declined to $11.0 million as of December 31, 2025, from $11.9 million in 2024 [45] Non-Interest Income and Expenses - Non-interest income for 2025 was $7.9 million, down from $23.2 million in 2024, primarily due to a $17.5 million loss on securities sales [15] - Non-interest expenses increased to $70.7 million in 2025, up $3.4 million or 5.1% from the previous year, driven by higher salaries and benefits [17][18] Balance Sheet and Capital - Total assets decreased to $2.710 billion as of December 31, 2025, from $2.776 billion in 2024, largely due to balance sheet repositioning efforts [47] - Total liabilities decreased to $2.456 billion, with total deposits down by $126.2 million, or 5.3% [52][53] - Total shareholders' equity increased to $254.7 million, up 18.3% from $215.3 million in 2024, driven by a decrease in accumulated other comprehensive loss and an increase in retained earnings [57]