CHEMUNG FINANCIAL CORP (CHMG) SEC Filings & Earnings Calls

Consumer loan portfolio declining due to paydowns outpacing originations in indirect auto loans

“The decline in average balances of consumer loans was largely due to a decline in average balances of indirect auto loans, as paydowns and payoffs continued to outpace new originations.” · word for word

Deposit cost pressure from rate adjustments on larger commercial relationships

“The increase in the average cost of savings and money market deposits was largely due to rate adjustments on certain larger commercial relationships during the quarter.” · word for word

Regulatory change in supervisory body from NYDFS to OCC, but no material risk change disclosed.

“subject to supervision, regulation, and examination by the OCC” · word for word

Interest rate risk from securities portfolio

“Unrealized losses on AFS securities were $47.181M at June 30, 2026, primarily due to interest rate changes.”

Credit risk in commercial real estate

“Non-owner occupied CRE loans increased to $1.201B, and the allowance for CRE loans increased to $16.198M.”

Concentration in mortgage-backed securities

“MBS represent 96.2% of unrealized losses on AFS securities; fair value declines are attributed to interest rates, not credit.”

Net income declined sequentially from $9.2M in Q1 2026 to $8.8M in Q2 2026, indicating potential earnings pressure.

“net income of $8.8 million... compared to net income of $9.2 million... for the first quarter of 2026”

Interest expense on deposits increased due to higher cost savings and money market deposits, including municipal ICS and escrow products.

“The increases in the average cost and average balances of customer interest-bearing deposits were each concentrated in savings and money market deposits, which increased 12 basis points and $61.1 million” · word for word

Interest rate risk from securities portfolio

“Unrealized losses on AFS securities were $46.913M at March 31, 2026, primarily due to interest rate changes.”

Credit risk in commercial real estate

“Non-owner occupied CRE loans increased to $1.162B, and the allowance for CRE loans increased to $15.643M.”

Concentration in mortgage-backed securities

“MBS represent 95.5% of unrealized losses on AFS securities; fair value declines are attributed to interest rates, not credit.”

Net interest income slightly declined 0.8% linked quarter due to lower yields on loans and interest-earning deposits, partially offset by lower deposit costs.

“Net interest income for the first quarter of 2026 totaled $23.6 million, compared to $23.8 million for the prior quarter, a decrease of $0.2 million, or 0.8%” · word for word

CRE Concentration Regulatory Risk

“Non-owner occupied commercial real estate loans represented 384.9% of Bank risk-based capital as of December 31, 2025 and outstanding balances of non-owner occupied commercial real estate loans increased by 37.1% during the 36 months preceding December 31, 2025.” · word for word

Fraud Loss Exposure

“The Bank continues to pursue recovery of the remaining $3.7 million, interest, and accumulated expenses as a result of purchasing the participating interest.” · word for word

Loan Participation Monitoring Risk

“loan participation balances where the Bank is not the lead bank totaled $195.8 million, or 8.6% of our loan portfolio.” · word for word

Indirect Auto Lending Credit Risk

“$132.7 million, or 5.8% of our total loan portfolio, consisted of indirect automobile loans.” · word for word

Deposit Liquidity Risk

“the Bank had $1.8 billion of deposit liabilities, representing 79.6% of total deposits, that had no maturity and, therefore, may be withdrawn by the depositor at any time without penalty.” · word for word

Balance sheet repositioning included $17.5M loss on sale of securities in 2025, impacting annual net income.

“Annual net income for the year ended December 31, 2025 of $15.1 million, or $3.14 per share, was inclusive of a $17.5 million loss on the sale of securities as part of the Corporation's balance sheet repositioning.” · word for word

Consumer loan portfolio declining due to lower origination activity and turnover of indirect auto loans.

“The decrease in average balances of consumer loans was primarily due to lower origination activity and normal portfolio turnover of indirect auto loans.” · word for word

Credit loss provision increase

“Provision for credit losses $1,064 vs $564 for the three months ended September 30, 2025 and 2024, respectively.”

Securities portfolio loss realization

“Net (losses) on securities transactions $17,498 for the nine months ended September 30, 2025 vs $0 for the nine months ended September 30, 2024.”

Deposit concentration risk

“Total deposits $2,358,516 at September 30, 2025 vs $2,396,883 at December 31, 2024.”