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CHEMUNG FINANCIAL CORP (CHMG)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 EPS was $1.62 (GAAP), up from a Q2 loss and up 36% year over year; EPS was modestly above S&P Global consensus of $1.61, while revenue was slightly below consensus ($27.71M vs $28.09M)* .
  • Net interest margin expanded 40 bps q/q to 3.45% on lower funding costs and the payoff of $100M brokered deposits; cost of funds fell to 1.85% from 1.94% q/q and 2.24% y/y .
  • Balance sheet repositioning executed in Q2 (securities sale, $45M sub debt) drove immediate NII uplift (+$1.9M q/q) and flexibility to fund commercial loan growth; management expects continued benefits as mix shifts and deposit costs reset .
  • Credit quality remained strong: NPLs/loans improved to 0.35% (from 0.39% in Q2; 0.52% y/y); annualized Q3 net charge-offs were 0.02% (vs 0.19% in Q2) .
  • Dividend raised to $0.34 during Q3 (second increase in 2025), a potential support for the stock alongside visible margin expansion and resumed profitability .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion and NII growth: NIM rose to 3.45% (+40 bps q/q; +73 bps y/y) and net interest income increased $1.9M q/q, attributed to lower funding costs and redeployment post-repositioning .
  • Commercial loan momentum: Average loan balances increased q/q, led by commercial real estate across Albany (Capital Bank), Buffalo (Canal), and Southern Tier (Chemung Canal) markets .
  • Management tone/confidence: “Results demonstrate the importance of the Corporation's balance sheet repositioning… enabling continued investment in quality loan opportunities while simultaneously managing funding costs,” CEO Anders Tomson said .

What Went Wrong

  • Slight top-line shortfall vs S&P consensus despite strong NII (revenue $27.71M vs $28.09M; small miss). Operating expenses remained elevated y/y (+6.9%), with higher salaries/benefits .
  • Provision higher y/y on growth and model updates (PCL $1.06M vs $0.56M y/y), reflecting stronger loan growth and CECL inputs .
  • Uninsured deposits rose to 31.4% of total deposits (from 27.2% at YE 2024), a monitored liquidity consideration .

Financial Results

Income Statement and Margin (GAAP; $USD)

MetricQ3 2024Q2 2025Q3 2025
EPS (GAAP) ($)1.19 (1.35) 1.62
Net Interest Income ($M)18.39 20.81 22.69
Non-Interest Income ($M)5.92 (10.71) 6.09
Provision for Credit Losses ($M)0.56 1.15 1.06
Net Interest Margin (FTE) (%)2.72% 3.05% 3.45%
ROA (%)0.83% (0.92%) 1.15%
ROE (%)10.81% (11.29%) 12.89%
Efficiency Ratio (Adjusted) (%)67.69% 65.69% 61.18%

Consensus vs Actual (S&P Global)*

MetricQ3 2024Q2 2025Q3 2025
EPS Consensus ($)1.125*1.33*1.61*
EPS Actual ($)1.19*1.31*1.62*
Revenue Consensus ($M)24.33*N/A28.09*
Revenue Actual ($M)23.74*8.96*27.71*

Values marked with * retrieved from S&P Global.

Balance Sheet and Credit KPIs

KPIQ3 2024Q2 2025Q3 2025
Loans/Deposits (%)82.78 86.37 93.38
Cost of Funds (%)2.24 1.94 1.85
Cost of Interest-Bearing Deposits (%)2.88 2.45 2.36
Non-Performing Loans/Loans (%)0.52 0.39 0.35
ACL/Loans (%)1.06 1.06 1.07
Annualized Net Charge-Offs/Avg Loans (%)0.02 0.19 0.02
Book Value/Share ($)46.22 48.85 50.98
Tangible Book Value/Share ($)41.65 44.31 46.44

Segment breakdown: Not applicable (community bank).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025$0.32 (Q2 2025) $0.34 (declared Aug 19, 2025) Raised
Formal guidance (revenue, margins, OpEx, tax rate)Q3 2025None providedNone providedMaintained (no formal guidance)

Additional updates: All $100M brokered deposits matured and were paid off in early July; management emphasized reduced reliance on wholesale funding .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available in our document set; themes reflect management’s quarterly disclosures.

TopicPrevious Mentions (Q2 2025, Q1 2025)Current Period (Q3 2025)Trend
Balance sheet repositioningQ2: Sold ~$245M AFS; realized $17.5M pre-tax loss to reset balance sheet; issued $45M sub notes . Q1: groundwork on deposit mix/cost controls .Benefits evident: NIM +40 bps q/q; NII +$1.9M q/q; lower funding costs; average interest-bearing liabilities down $141M y/y .Improving
Funding costs/deposit mixQ1–Q2: Cost of funds fell (2.04%→1.92%→1.94%); shifting away from time/brokered deposits .Cost of funds 1.85%; brokered deposits $0 at 9/30 after $100M payoff in July .Improving
Loan growth focus (commercial)Q1–Q2: Commercial CRE-led growth; pipelines in Albany/Buffalo/Southern Tier .Continued CRE growth; ~half from Capital Bank (Albany); remainder Buffalo/Southern Tier .Improving
Credit qualityQ1–Q2: NPLs 0.47%→0.39%; Q2 C&I charge-off elevated NCOs .NPLs 0.35%; NCOs 0.02% annualized; ACL/loans 1.07% .Improving
Liquidity/capitalQ2: Cash $320M; sub debt qualified as Tier 2/ Tier 1 downstreamed; TBV up .Cash $107.6M; equity/assets 9.10%; TBV/share $46.44; well-capitalized .Stable
Wealth managementQ2: AUM/A up to $2.313B .AUM/A $2.393B; +8.1% vs YE .Improving

Management Commentary

  • “Third quarter results demonstrate the importance of the Corporation's balance sheet repositioning... Net interest income growth of $1.9 million… reflects the immediate positive impact these actions have had on earnings by enabling continued investment in quality loan opportunities while simultaneously managing funding costs.” – Anders M. Tomson, President & CEO .
  • “We are encouraged by continued strength in credit quality and the resilience of our core operations… With strong pipelines in key markets and a continued focus on relationship banking, the Corporation remains well positioned to deliver long-term value...” – Anders M. Tomson .
  • Key operational drivers: lower brokered/time deposit reliance and improved deposit beta; average cost of interest-bearing deposits down 52 bps y/y, cost of funds down 39 bps y/y .

Q&A Highlights

  • No earnings call transcript for Q3 2025 was available in our document repository; therefore, Q&A themes and any on-call guidance clarifications could not be assessed [ListDocuments: earnings-call-transcript returned none].

Estimates Context

  • EPS beat: $1.62 actual vs $1.61 consensus (narrow beat); revenue slight miss: $27.71M actual vs $28.09M consensus (definitions may differ from GAAP total revenue presentation). Street models likely raise NIM/NII run-rate assumptions and trim non-interest expense growth; tax rate tracking ~22.6% .
  • Q2 context: EPS (non-GAAP) was $1.31 vs $1.33 consensus; headline GAAP loss driven by one-time securities loss tied to repositioning, which underpins Q3 rebound * .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Margin-led earnings rebound appears durable given the funding mix reset and the brokered deposit payoff; NIM at 3.45% with room for modest further improvement as deposit pricing continues to reprice lower .
  • Commercial pipelines remain healthy across key NY markets (Albany/Buffalo/Southern Tier), supporting loan growth without outsized credit risk signals (NPLs 0.35%, NCOs 0.02%) .
  • Liquidity and capital improved (equity/assets 9.10%; TBV/share $46.44), aided by repositioning and sub debt; flexibility to fund growth and support dividends .
  • Expense discipline plus revenue mix shift compressed the adjusted efficiency ratio to 61.18%; continued operating leverage is a key driver of estimate upward revisions .
  • Watch items: rising uninsured deposits to 31.4% (seasonal/municipal flows), higher y/y provision on growth/model updates, and consumer NCOs concentrated in indirect auto .
  • Dividend momentum (raised to $0.34) signals confidence in earnings trajectory; shareholder returns could benefit further if NIM holds near mid-3% and credit remains benign .
  • Near-term trading setup: EPS beat plus visible NIM expansion and improved credit metrics are constructive; modest revenue miss (S&P definition) is less impactful given bank-specific revenue constructs and strong NII trajectory *.

Values marked with * retrieved from S&P Global.

Sources:
- Q3 2025 8‑K/Press Release: **[763563_0001171843-25-006565_exh_991.htm:0]** **[763563_0001171843-25-006565_exh_991.htm:1]** **[763563_0001171843-25-006565_exh_991.htm:2]** **[763563_0001171843-25-006565_exh_991.htm:3]** **[763563_0001171843-25-006565_exh_991.htm:4]** **[763563_0001171843-25-006565_exh_991.htm:5]** **[763563_0001171843-25-006565_exh_991.htm:6]** **[763563_0001171843-25-006565_exh_991.htm:7]** **[763563_0001171843-25-006565_exh_991.htm:8]** **[763563_0001171843-25-006565_exh_991.htm:9]** **[763563_0001171843-25-006565_exh_991.htm:10]** **[763563_0001171843-25-006565_exh_991.htm:11]** **[763563_0001171843-25-006565_exh_991.htm:12]** **[763563_0001171843-25-006565_exh_991.htm:13]** **[763563_0001171843-25-006565_exh_991.htm:14]** **[763563_0001171843-25-006565_exh_991.htm:15]** **[763563_0001171843-25-006565_exh_991.htm:16]** **[763563_0001171843-25-006565_exh_991.htm:17]** **[763563_0001171843-25-006565_exh_991.htm:18]** **[763563_0001171843-25-006565_exh_991.htm:19]** **[763563_0001171843-25-006565_exh_991.htm:20]** **[763563_0001171843-25-006565_exh_991.htm:21]** **[763563_0001171843-25-006565_exh_991.htm:22]** **[763563_0001171843-25-006565_exh_991.htm:23]** **[763563_0001171843-25-006565_exh_991.htm:24]** **[763563_0001171843-25-006565_exh_991.htm:25]** **[763563_0001171843-25-006565_f8k_102125.htm:1]**
- Q2 2025 8‑K/Press Release: **[763563_0001171843-25-004538_exh_991.htm:0]** **[763563_0001171843-25-004538_exh_991.htm:1]** **[763563_0001171843-25-004538_exh_991.htm:2]** **[763563_0001171843-25-004538_exh_991.htm:3]** **[763563_0001171843-25-004538_exh_991.htm:4]** **[763563_0001171843-25-004538_exh_991.htm:5]** **[763563_0001171843-25-004538_exh_991.htm:6]** **[763563_0001171843-25-004538_exh_991.htm:7]** **[763563_0001171843-25-004538_exh_991.htm:8]** **[763563_0001171843-25-004538_exh_991.htm:9]** **[763563_0001171843-25-004538_exh_991.htm:10]** **[763563_0001171843-25-004538_exh_991.htm:11]** **[763563_0001171843-25-004538_exh_991.htm:12]** **[763563_0001171843-25-004538_exh_991.htm:13]** **[763563_0001171843-25-004538_exh_991.htm:14]** **[763563_0001171843-25-004538_exh_991.htm:15]** **[763563_0001171843-25-004538_exh_991.htm:16]** **[763563_0001171843-25-004538_exh_991.htm:17]** **[763563_0001171843-25-004538_exh_991.htm:18]** **[763563_0001171843-25-004538_exh_991.htm:19]** **[763563_0001171843-25-004538_exh_991.htm:20]** **[763563_0001171843-25-004538_exh_991.htm:21]** **[763563_0001171843-25-004538_exh_991.htm:22]** **[763563_0001171843-25-004538_exh_991.htm:23]** **[763563_0001171843-25-004538_exh_991.htm:24]** **[763563_0001171843-25-004538_exh_991.htm:25]**
- Q1 2025 8‑K/Press Release: **[763563_0001171843-25-002319_exh_991.htm:0]** **[763563_0001171843-25-002319_exh_991.htm:1]** **[763563_0001171843-25-002319_exh_991.htm:2]** **[763563_0001171843-25-002319_exh_991.htm:3]** **[763563_0001171843-25-002319_exh_991.htm:4]** **[763563_0001171843-25-002319_exh_991.htm:5]** **[763563_0001171843-25-002319_exh_991.htm:6]** **[763563_0001171843-25-002319_exh_991.htm:7]** **[763563_0001171843-25-002319_exh_991.htm:8]** **[763563_0001171843-25-002319_exh_991.htm:9]** **[763563_0001171843-25-002319_exh_991.htm:10]** **[763563_0001171843-25-002319_exh_991.htm:11]** **[763563_0001171843-25-002319_exh_991.htm:12]** **[763563_0001171843-25-002319_exh_991.htm:13]** **[763563_0001171843-25-002319_exh_991.htm:14]** **[763563_0001171843-25-002319_exh_991.htm:15]** **[763563_0001171843-25-002319_exh_991.htm:16]** **[763563_0001171843-25-002319_exh_991.htm:17]** **[763563_0001171843-25-002319_exh_991.htm:18]** **[763563_0001171843-25-002319_exh_991.htm:19]** **[763563_0001171843-25-002319_exh_991.htm:20]** **[763563_0001171843-25-002319_exh_991.htm:21]** **[763563_0001171843-25-002319_f8k_041825.htm:0]** **[763563_0001171843-25-002319_f8k_041825.htm:1]** **[763563_0001171843-25-002319_f8k_041825.htm:2]**
- Dividend press release (Aug 19, 2025): **[763563_386d287193f44d4ca9ae21ddb48194e0_0]**
- Estimates (S&P Global): Values marked with *.