Chemung Financial Reports Q2 2026 Net Income of $8.8M as Net Interest Income Surges 18.8%
Chemung Financial Corporation reported second quarter 2026 net income of $8.8 million, or $1.82 per share, a sharp recovery from a net loss of $6.5 million in the prior year period, which was impacted by a $17.5 million pre-tax loss on securities sales. Net interest income rose 18.8% year-over-year to $24.7 million, supported by strong commercial loan growth of 13.0% annualized year-to-date and a 62 basis point expansion in net interest margin to 3.67%. Total assets grew to $2.820 billion as of June 30, 2026, with total deposits increasing $93.3 million and shareholders' equity rising 6.1% to $270.4 million since year-end 2025.
*this image is generated using AI for illustrative purposes only.
Chemung Financial Corporation, the parent company of Chemung Canal Trust Company, reported net income of $8.8 million, or $1.82 per share, for the second quarter of 2026, compared to a net loss of $6.5 million, or $1.35 per share, in the same period of the prior year. Sequentially, earnings declined from $9.2 million, or $1.91 per share, recorded in the first quarter of 2026. The prior year period was significantly impacted by a pre-tax loss of $17.5 million on the sale of available for sale securities as part of the Corporation's balance sheet repositioning. Anders M. Tomson, President and CEO, noted that net interest income increased significantly, net interest margin expanded, funding costs declined, and commercial loan growth remained strong compared to the same period last year, reflecting the benefits of strategic decisions made in 2025.
Key Second Quarter 2026 Highlights
The following table summarizes key operational and financial highlights for the second quarter of 2026:
| Metric: | Details |
|---|---|
| Net Income: | $8.8 million |
| Earnings Per Share: | $1.82 |
| Net Interest Income (YoY change): | +18.8% to $24.7 million |
| Net Interest Margin (FTE): | 3.67% (expanded 62 bps YoY) |
| YTD Annualized Loan Growth: | 8.7% |
| YTD Annualized Commercial Loan Growth: | 13.0% |
| YTD Annualized Customer Deposit Growth: | 8.3% |
| Dividends Declared Per Share: | $0.34 |
| Non-interest-bearing Deposits (% of total): | 28.8% as of June 30, 2026 |
Income Statement Performance
The following table presents key income statement metrics comparing the second quarter of 2026 to the same period in the prior year:
| Metric: | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net Interest Income: | $24.7 million | $20.8 million | +18.8% |
| Provision for Credit Losses: | $0.6 million | $1.1 million | -51.0% |
| Non-interest Income (recurring): | $6.5 million | $(10.7) million | N/M |
| Non-interest Expense: | $19.3 million | $17.8 million | +8.4% |
| Net Income: | $8.8 million | $(6.5) million | N/M |
| Basic & Diluted EPS: | $1.82 | $(1.35) | N/M |
Net interest income growth was driven by an increase of $3.4 million in interest income on loans and a decrease of $2.4 million in interest expense on deposits compared to the prior year period. The fully taxable equivalent net interest margin expanded to 3.67% from 3.05% in the same period of the prior year. Non-interest income for the second quarter of 2026 totaled $6.5 million, compared to negative non-interest income of $10.7 million in the prior year period, which included the $17.5 million pre-tax loss on securities sales. Non-interest expense rose 8.4% year-over-year to $19.3 million, primarily due to increases in salaries and wages and other non-interest expense. Income tax expense was $2.5 million, with an effective tax rate of 22.0%.
Loan and Deposit Growth
Total assets were $2.820 billion as of June 30, 2026, compared to $2.710 billion as of December 31, 2025, an increase of $110.0 million, or 4.1%. The following table highlights balance sheet trends:
| Balance Sheet Metric: | June 30, 2026 | Dec. 31, 2025 | Change |
|---|---|---|---|
| Total Assets: | $2.820 billion | $2.710 billion | +4.1% |
| Total Loans (net of deferred fees): | $2,367.2 million | $2,269.6 million | +$97.6 million |
| Total Deposits: | $2,363.9 million | $2,270.7 million | +$93.3 million |
| Total Shareholders' Equity: | $270.4 million | $254.7 million | +6.1% |
| Book Value Per Share: | $55.88 | $52.97 | — |
| Tangible Book Value Per Share: | $51.37 | $48.43 | — |
Commercial loan growth of $111.8 million was the primary driver of loan expansion, led by the Corporation's Canal Bank division ($61.7 million) and Capital Bank division ($54.2 million). Consumer loans declined $14.2 million due to continued runoff of indirect auto loans. Total deposit growth of $93.3 million included $57.4 million in non-interest-bearing deposits and $35.9 million in interest-bearing deposits. Non-interest-bearing deposits comprised 28.8% of total deposits as of June 30, 2026, compared to 27.5% as of December 31, 2025.
Asset Quality
Asset quality metrics remained broadly stable, though non-performing assets increased modestly. Non-performing loans totaled $9.2 million, or 0.39% of total loans, as of June 30, 2026, compared to $7.9 million, or 0.35%, as of December 31, 2025. Non-performing assets totaled $11.2 million, or 0.40% of total assets, compared to $8.2 million, or 0.30%, at year-end 2025. The allowance for credit losses on loans was $25.2 million, representing 1.07% of total loans and 275.46% of non-performing loans as of June 30, 2026. Annualized net charge-offs for the six months ended June 30, 2026 totaled 0.01%, compared to 0.12% for the same period in the prior year.
Wealth Management and Capital Position
The Wealth Management Group reported total assets under management or administration of $2.494 billion as of June 30, 2026, up from $2.338 billion as of December 31, 2025, an increase of $155.1 million, or 6.6%. Total fee income attributable to the Wealth Management Group for the six months ended June 30, 2026 was $6.3 million, compared to $5.9 million for the same period in the prior year, an increase of $0.4 million, or 6.8%. CFS Group reported total client assets of $319.4 million and fee and commission income of $0.9 million for the six months ended June 30, 2026, up from $0.5 million in the prior year period. The total equity to total assets ratio was 9.59% as of June 30, 2026, compared to 9.40% as of December 31, 2025, and the Bank's capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action. During July 2026, the Office of the Comptroller of the Currency conditionally approved the Bank's application to convert its state charter to a national bank charter, with the conversion expected to be completed prior to the end of 2026.
How will the pending conversion to a national bank charter impact the Bank's operational flexibility and regulatory oversight in the coming quarters?
Can the sustained expansion of the net interest margin continue given the sequential decline in net income from the first quarter?
What strategies are in place to offset the continued runoff of indirect auto loans and diversify the consumer lending portfolio?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
