$CHMG

CHEMUNG FINANCIAL CORP

CIK:0000763563|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest and dividend income:
Loans, including fees	$ 32,822	$ 29,435	$ 64,343	$ 57,534
Taxable securities	1,666	2,530	3,353	5,553
Tax exempt securities	78	214	152	465
Interest-earning deposits	325	855	628	1,180
Total interest and dividend income	34,891	33,034	68,476	64,732
Interest expense:
Deposits	8,703	11,076	17,242	22,232
Borrowed funds	1,518	1,150	2,980	1,875
Total interest expense	10,221	12,226	20,222	24,107
Net interest income	24,670	20,808	48,254	40,625
Provision for credit losses	561	1,145	1,162	2,237
Net interest income after provision for credit losses	24,109	19,663	47,092	38,388
Non-interest income:
Net (losses) on securities transactions	0	(17,498)	0	(17,498)
Changes in fair value of equity investments	272	108	201	61
Net gains on sales of loans held for sale	47	51	68	91
Net gains (losses) on sales of other real estate owned	0	3	0	(8)
Income from bank-owned life insurance	7	8	14	16
Other	841	1,406	1,994	2,281
Total non-interest income	6,503	(10,705)	12,823	(4,816)
Non-interest expense:
Salaries and wages	8,037	7,579	15,637	14,788
Pension and other employee benefits	2,286	2,112	4,408	4,034
Other components of net periodic pension and postretirement benefits	(142)	(113)	(284)	(226)
Net occupancy	1,546	1,431	3,074	2,964
Furniture and equipment	498	455	907	828
Data processing	2,615	2,563	5,151	5,097
Professional services	962	805	1,653	1,443
Marketing and advertising	497	351	738	690
Other real estate owned	17	3	25	14
FDIC insurance	304	434	619	873
Loan expense	458	296	792	574
Other	2,243	1,853	4,063	3,617
Total non-interest expense	19,321	17,769	36,783	34,696
Income (loss) before income tax expense	11,291	(8,811)	23,132	(1,124)
Income tax expense (benefit)	2,481	(2,359)	5,123	(695)
Net income (loss)	$ 8,810	$ (6,452)	$ 18,009	$ (429)
Weighted average common shares outstanding, basic (in shares)	4,837,694	4,808,078	4,830,485	4,798,462
Weighted average shares outstanding (in shares)	4,837,694	4,808,078	4,830,485	4,798,462
Basic earnings (loss) per share (in dollars per share)	$ 1.82	$ (1.35)	$ 3.73	$ (0.09)
Diluted earnings (loss) per share (in dollars per share)	$ 1.82	$ (1.35)	$ 3.73	$ (0.09)
WMG fee income
Non-interest income:
Revenues from contracts with customer	$ 3,191	$ 2,993	$ 6,336	$ 5,860
Service charges on deposit accounts
Non-interest income:
Revenues from contracts with customer	1,038	1,114	2,089	2,234
Interchange revenue from debit card transactions
Non-interest income:
Revenues from contracts with customer	$ 1,107	$ 1,110	$ 2,121	$ 2,147

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 18,009	$ (429)
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of right-of-use assets	454	307
Provision for credit losses	1,162	2,237
Losses (gains) on disposal of fixed assets, net	0	(616)
Depreciation and amortization of fixed assets	970	941
Amortization of premiums on securities, net	324	1,097
(Gains) on sales of loans held for sale, net	(68)	(91)
Proceeds from sales of loans held for sale	3,670	4,842
Loans originated and held for sale	(3,927)	(6,963)
Losses on sales of other real estate owned, net	0	8
Change in fair value of equity investments, net	(201)	(61)
Losses on securities transactions, net	0	17,498
Write down of equity investments	289	0
Purchases of equity investments, net	(115)	(91)
Amortization of deferred costs on subordinated debt	51	4
Losses (gains) on interest rate swaps, net	(68)	66
Income from bank-owned life insurance	(14)	(16)
Decrease (increase) in accrued interest receivable	(236)	666
(Increase) in other assets	(271)	(1,059)
(Decrease) in accrued interest payable	(269)	(69)
(Decrease) in other liabilities	(1,788)	(1,687)
(Payments on) operating leases	(438)	(310)
Expense related to restricted stock units for directors' deferred compensation plan	12	11
Expense related to employee restricted stock awards	727	641
Net cash provided by operating activities	18,273	16,926
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales, maturities, calls, and principal paydowns on securities available for sale	11,362	255,645
Proceeds from sales, maturities and principal collected on securities held to maturity	80	128
Purchases of securities held to maturity	(1,000)	0
Purchases of FHLBNY and FRBNY stock	(12,180)	(10,322)
Redemption of FHLBNY and FRBNY stock	11,956	12,613
Proceeds from sales of fixed assets	0	1,300
Purchases of premises and equipment	(456)	(688)
Proceeds from sale of other real estate owned	0	347
Proceeds from bank owned life insurance	280	0
(Increase) in loans, net	(97,656)	(61,955)
Net cash provided by (used in) investing activities	(87,614)	197,068
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in demand, interest-bearing demand, savings, and insured money market deposits	124,502	77,521
(Decrease) in time deposits	(31,242)	(5,442)
(Decrease) in FHLBNY overnight advances, net	(44,520)	(54,110)
Increase in FHLBNY term advances, net	47,000	0
(Payments on) finance leases	(179)	(163)
Proceeds from subordinated debt	0	45,000
Payment of subordinated debt issuance costs	0	(858)
Purchase of treasury stock	(184)	(90)
Sale of treasury stock	257	229
Cash dividends paid	(3,277)	(3,065)
Net cash provided by financing activities	92,357	59,022
Increase in cash and cash equivalents, net	23,016	273,016
Cash and cash equivalents, beginning of period	50,097	47,035
Cash and cash equivalents, end of period	73,113	320,051
Cash paid for:
Interest	20,491	24,176
Income taxes	6,560	3,723
Supplemental disclosure of non-cash activity:
Transfer of loans to other real estate owned	1,895	0
Right-of-use assets obtained through operating lease liabilities	$ 941	$ 80

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from financial institutions	$ 28,994	$ 22,772
Interest-earning deposits in other financial institutions	44,119	27,325
Total cash and cash equivalents	73,113	50,097
Equity investments, at estimated fair value	3,605	3,765
Securities available for sale, at estimated fair value (amortized cost of $316,202, at June 30, 2026 and $327,888 at December 31, 2025, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025, respectively)	269,043	280,598
Securities held to maturity, at amortized cost (estimated fair value of $1,560 at June 30, 2026 and $640 at December 31, 2025, net of allowance for credit losses of $0 at June 30, 2026 and December 31, 2025, respectively)	1,560	640
FHLBNY and FRBNY stock, at cost	9,690	9,466
Loans, net of deferred loan fees	2,367,151	2,269,561
Allowance for credit losses	(25,232)	(24,209)
Loans, net	2,341,919	2,245,352
Loans held for sale	2,427	2,102
Premises and equipment, net	14,887	15,401
Operating lease right-of-use assets	5,242	4,755
Goodwill	21,824	21,824
Bank-owned life insurance	2,718	2,984
Interest rate swap assets	17,548	17,280
Accrued interest receivable and other assets	56,626	55,971
Total assets	2,820,202	2,710,235
Deposits:
Non interest-bearing	681,912	624,532
Interest-bearing	1,682,022	1,646,142
Total deposits	2,363,934	2,270,674
Overnight and short-term advances	89,590	87,110
Subordinated debt, net of issuance costs of $921 and $972, respectively	44,079	44,028
Long-term finance lease obligation	3,265	3,444
Operating lease liabilities	5,440	4,937
Interest rate swap liabilities	17,612	17,412
Accrued interest payable and other liabilities	25,921	27,921
Total liabilities	2,549,841	2,455,526
Shareholders' equity:
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at June 30, 2026 and December 31, 2025	53	53
Additional paid-in capital	49,638	49,547
Retained earnings	271,216	256,484
Treasury stock, at cost; $489,798 shares at June 30, 2026 and $519,079 shares at December 31, 2025	(14,601)	(15,322)
Accumulated other comprehensive loss	(35,945)	(36,053)
Total shareholders' equity	270,361	254,709
Total liabilities and shareholders' equity	$ 2,820,202	$ 2,710,235