Chemung Financial Q2 2026: Net Income Swings to $8.8M from Year-Ago Loss; NIM Expands 62 bps
CHMG sits 54% above its 52-week low of $48.61 on elevated volume (2.0× avg).
Summary
Chemung Financial reported Q2 2026 net income of $8.8 million, a dramatic improvement from a $6.5 million loss in Q2 2025, as the benefits of its 2025 balance sheet repositioning materialized through higher net interest income and margin expansion.
Key Events · Earnings and Guidance · CHMG
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Earnings Swing to Profit
Q2 2026 net income of $8.8 million ($1.82 per share) compared to a net loss of $6.5 million ($1.35 per share) in Q2 2025, driven by higher net interest income and lower deposit costs.
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Net Interest Margin Expansion
Net interest margin expanded 62 basis points year-over-year to 3.67%, as average interest-earning asset yields rose 35 bps to 5.18% while the cost of interest-bearing liabilities fell 30 bps to 2.27%.
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Strong Loan and Deposit Growth
Total loans grew $97.6 million year-to-date (8.7% annualized), led by commercial loans; total deposits increased $93.3 million, with non-interest-bearing deposits rising to 28.8% of total deposits.
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Asset Quality Mixed
Non-performing loans increased to $9.2 million (0.39% of total loans) from $7.9 million at year-end 2025, though net charge-offs remained low at 0.01% annualized for the first half of 2026.
Analysis · CHMG · Finance
A sharp turnaround defined Chemung Financial's Q2 2026, with net income reaching $8.8 million compared to a $6.5 million loss a year ago. The improvement was fueled by an 18.8% jump in net interest income and a 62-basis-point expansion in net interest margin to 3.67%. The balance sheet repositioning executed in 2025 is delivering tangible results: loan growth is strong at an 8.7% annualized pace, deposit costs are falling, and capital ratios are improving. However, non-performing loans ticked up to 0.39% of total loans, and the bank is navigating a charter conversion to a national bank, which adds a layer of regulatory transition. The stock is trading near its 52-week high, reflecting market optimism, but the earnings beat and improved profitability metrics reinforce the positive trajectory.
At the time of this filing, CHMG was trading at $74.95 on NASDAQ in the Finance sector, with a market capitalization of approximately $361.2M. The 52-week trading range was $48.61 to $78.42. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.