Chemung Financial in Elmira, N.Y., reported a quarterly loss after unloading underwater securities.
The $2.9 billion-asset company said in a press release that it lost $6.5 million in the second quarter, compared to $5 million in net income a year earlier.
Chemung sold $245.5 million of securities in June 2025 at a pretax loss of $17.5 million. The company, in conjunction with selling the securities, issued $45 million of subordinated debt due in June 2035.
Chemung “executed two major components of a transformational balance sheet repositioning in the second quarter by issuing subordinated debt and selling a significant portion of our securities portfolio,” Anders Tomson, the company’s president and CEO, said in the release.
“These strategic actions strengthen our regulatory capital position, improved commercial real estate concentration ratios, and enhanced our flexibility in funding loan growth in key expansion markets while positioning the Corporation to benefit from lower funding costs beginning in the third quarter,” he added.