Chemung Financial swings to $8.8M Q2 profit as charter conversion advances
CHMG sits 67% above its 52-week low of $49.045.
Summary
Chemung Financial's Q2 2026 net income rebounded to $8.8 million from a year-ago loss, fueled by higher net interest income and lower credit costs. The OCC conditionally approved its national bank charter conversion.
Key Events · Earnings and Guidance · CHMG
-
Q2 Net Income Swings to $8.8M
Net income of $8.8 million, or $1.82 per share, compared to a loss of $6.5 million, or -$1.35 per share, in Q2 2025. The prior-year loss included a $17.5 million securities sale loss.
-
Net Interest Income Jumps 18.6%
Net interest income rose to $24.7 million, driven by loan growth and a lower cost of deposits. Net interest margin expanded to 3.67% from 3.05%.
-
Provision for Credit Losses Halved
Provision fell to $0.6 million from $1.1 million, reflecting stable economic forecasts and improved credit quality. Net charge-offs were just $0.2 million.
-
National Bank Charter Conversion Approved
The OCC conditionally approved the Bank's application to convert from a New York state charter to a national bank charter, expected to be completed before year-end 2026.
Analysis · CHMG · Finance
A sharp earnings recovery marked Chemung Financial's Q2 2026, with net income reaching $8.8 million versus a $6.5 million loss a year ago. Driving the turnaround were an 18.6% jump in net interest income and a lower provision for credit losses. The bank also disclosed that the OCC conditionally approved its conversion to a national charter—a strategic move that could streamline regulation. While non-performing assets ticked up to $11.2 million, credit quality remains manageable. These results confirm the positive trajectory seen in last month's Q2 earnings release, adding detail on the balance sheet and the charter conversion timeline.
At the time of this filing, CHMG was trading at $82.07 on NASDAQ in the Finance sector, with a market capitalization of approximately $395.6M. The 52-week trading range was $49.05 to $85.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.