CHMG

Chemung Financial (CHMG) came out with quarterly earnings of $1.82 per share, beating the Zacks Consensus Estimate of $1.7 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.06%. A quarter ago, it was expected that this financial holding company would post earnings of $1.63 per share when it actually produced earnings of $1.91, delivering a surprise of +17.18%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Chemung Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $31.17 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.24%. This compares to year-ago revenues of $10.1 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Chemung Financial shares have added about 37.5% since the beginning of the year versus the S&P 500's gain of 9.7%. While Chemung Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Chemung Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.71 on $32 million in revenues for the coming quarter and $6.75 on $125.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Amerant Bancorp Inc. (AMTB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -28.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Amerant Bancorp Inc.'s revenues are expected to be $98.58 million, down 10.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chemung Financial Corp (CHMG) : Free Stock Analysis Report Amerant Bancorp Inc. (AMTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ELMIRA, N.Y., July 22, 2026 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $8.8 million, or $1.82 per share, for the second quarter of 2026, compared to net income of $9.2 million, or $1.91 per share, for the first quarter of 2026, and a net loss of $6.5 million, or $1.35 per share, for the second quarter of 2025. "One year after initiating our balance sheet repositioning, the positive trajectory of the Corporation's operating results demonstrates the effectiveness of the actions we took to enhance earnings power, improve balance sheet flexibility, and better position the organization for long-term success," said Anders M. Tomson, President and CEO of Chemung Financial Corporation. "Compared to the same period last year, net interest income increased significantly, net interest margin expanded, funding costs declined, and commercial loan growth remained strong across key markets. Together, these results reflect the benefits of the strategic decisions made in 2025 and our continued focus on disciplined execution," Tomson concluded. Second Quarter 2026 Highlights: Net interest income increased $3.9 million, or 18.8%, in the second quarter of 2026, compared to the same period in the prior year, while net interest margin expanded 62 basis points to 3.67% over the same period. 1 Year to date annualized loan growth totaled 8.7%, including annualized commercial loan growth of 13.0%. Year to date annualized customer deposit growth totaled 8.3%, supported by strong growth in non interest-bearing deposits, which comprised 28.8% of total deposits as of June 30, 2026, compared to 27.5% as of prior year-end. Dividends declared during the second quarter of 2026 were $0.34 per share. 1 See the GAAP to Non-GAAP reconciliations. 2nd Quarter 2026 vs 1st Quarter 2026 Net Interest Income: Net interest income for the second quarter of 2026 totaled $24.7 million, compared to $23.6 million for the prior quarter, an increase of $1.1 million, or 4.7%, driven by an increase of $1.3 million in interest income on loans, partially offset by increases of $0.2 million in interest expense on deposits and $0.1 million in interest expense on borrowed funds. Interest income on loans increased mainly due to an increase of $46.4 million in average balances of total loans and an increase of five basis points in the average yield on total loans, each compared to the prior quarter. The increase in average balances of total loans was concentrated in an increase of $54.5 million in average balances of commercial loans, which was further concentrated in non-owner occupied commercial real estate loans. A majority of the increase in average balances of commercial loans was attributable to the Corporation's Canal Bank division in Western New York, with the remaining portion of the increase being attributable to the Corporation's Capital Bank division in the Albany area market. Average balances of consumer loans declined $7.6 million, compared to the prior quarter, while average balances of residential mortgage loans were approximately in line with the prior quarter. The decline in average balances of consumer loans was largely due to a decline in average balances of indirect auto loans, as a result of the Corporation continuing to prioritize funding other types of lending. The average yield on total loans increased mainly due to an increase of five basis points in the average yield on commercial loans, as well as an increase of 11 basis points in the average yield on consumer loans, each compared to the prior quarter. The average yield on residential mortgage loans was in line with the prior quarter. The increase in the average yield on commercial loans was primarily due to an increase in interest income recognized on the payoff of nonaccrual commercial loans compared to the prior quarter, an increase in average balances of commercial lines of credit, which tend to carry higher interest rates than commercial term loans, new balances continuing to be originated at higher interest rates relative to the portfolio's average rate, and the impact of interest rate resets on loans originated in the previous lower interest rate environment. The increase in the average yield on consumer loans was largely due to normal turnover in the Corporation's indirect auto lending portfolio as older, lower-yielding balances were replaced by higher-yielding balances in the current quarter. Also contributing to the increase was the repricing of prior promotional home equity lines of credit, which had carried below market interest rates for one year following origination, some of which repriced based on the Prime rate in the current quarter. Interest expense on deposits increased mainly due to an increase of four basis points in the average cost of total customer interest-bearing deposits, as well as an increase of $39.2 million in average balances of total customer interest-bearing deposits, each compared to the prior quarter, partially offset by a decrease of four basis points in the average cost of brokered deposits, as well as a decrease of $30.5 million in average balances of brokered deposits, each compared to the prior quarter. 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, respectively, compared to the prior quarter. The increase in the average cost and average balances of savings and money market deposits was largely due to an increase in municipal insured cash sweep (ICS) deposits, as well as the introduction of a new escrow product, both of which tend to carry higher costs relative to other types of savings and money market deposits. Interest expense on borrowed funds increased largely due to an increase of $4.0 million in average balances of total borrowings, compared to the prior quarter. The average cost of total borrowed funds decreased seven basis points compared to the prior quarter, from 5.74% in the prior quarter to 5.67% in the current quarter. Fully taxable equivalent net interest margin was 3.67% for the current quarter, compared to 3.60% for the prior quarter. Average interest-earning assets increased $44.4 million and average interest-bearing liabilities increased $12.6 million during the second quarter, each compared to the prior quarter. The average yield on interest-earning assets increased five basis points to 5.18% compared to the prior quarter, while the average cost of interest-bearing liabilities was in line with the prior quarter, at 2.27%. Total cost of funds was 1.67% for the current quarter, in line with the prior quarter. Provision for Credit Losses: Provision for credit losses was $0.6 million for the second quarter of 2026, in line with the prior quarter. Provision expense in the current quarter was primarily due to loan growth, concentrated in commercial real estate loans, an additional specific allocation of $0.2 million on a commercial real estate loan, and net charge-offs of $0.2 million. Provision expense in the prior quarter largely consisted of specific allocations totaling $1.2 million in relation to two commercial loans, increases in qualitative adjustment rates applied to the Corporation's CECL model, and commercial real estate loan growth. Partially offsetting provision expense in the prior quarter was the impact of the annual update and recalibration of loss drivers used in the Corporation's CECL model, which is implemented in the first quarter each year, resulting in a decrease in modeled loss rates, and a $0.7 million recovery of a previously charged-off commercial loan, which resulted in total net recoveries of $0.1 million in the prior quarter. Non-Interest Income: Non-interest income for the second quarter of 2026 totaled $6.5 million, compared to $6.3 million for the prior quarter, an increase of $0.2 million, or 3.2%, driven by increases of $0.3 million in the change in fair value of equity investments and $0.1 million in interchange revenue from debit card transactions, partially offset by a decrease of $0.3 million in other non-interest income. The increase in the change in fair value of equity investments was largely due to an increase in the market value of the Corporation's deferred compensation plan as a result of substantial improvements in financial markets in the current quarter, compared to declines in financial markets in the prior quarter. The increase in interchange revenue from debit card transactions was primarily due to an increase in debit card transaction volume in the current quarter, compared to the prior quarter. The decrease in other non-interest income was largely due to a decrease in interest rate swap fees, due to a decrease in the notional value of new interest rate swaps entered into in the current quarter, compared to the prior quarter, as well as the recognition of additional commissions in the prior quarter from CFS Group. Non-Interest Expense: Non-interest expense for the second quarter of 2026 totaled $19.3 million, compared to $17.5 million for the prior quarter, an increase of $1.8 million, or 10.3%, driven by increases of $0.4 million in each of salaries and wages and other non-interest expense, and $0.3 million in each of professional services and marketing and advertising. Salaries and wages increased mainly due to an increase in incentive-based compensation expense in the current quarter, compared to the prior quarter, an increase in expense relating to the increase in the market value of the Corporation's deferred compensation plan, and an increase in full-time equivalent employees, mostly due to the inclusion of summer temporary employees in the current quarter. Other non-interest expense increased primarily due to a $0.3 million write-down of a legacy non-marketable equity investment following the Corporation's reassessment of the investment's carrying value, which included additional qualitative information regarding its expected recoverability. The increase in professional services was largely due to recurring costs relating to the Corporation's subordinated debt and tax services performed for the Corporation's Wealth Management Group in the current quarter. Marketing and advertising increased largely due to the timing of advertising activity associated with multiple promotional campaigns which were active in the current quarter. Income Tax Expense: Income tax expense for the second quarter of 2026 was $2.5 million, compared to $2.6 million for the prior quarter, a decrease of $0.1 million. The decrease in income tax expense was primarily due to a decrease in pre-tax income compared to the prior quarter. The effective tax rate for the current quarter decreased to 22.0%, compared to 22.3% for the prior quarter. 2nd Quarter 2026 vs 2nd Quarter 2025 Net Interest Income: Net interest income for the second quarter of 2026 totaled $24.7 million, compared to $20.8 million for the same period in the prior year, an increase of $3.9 million, or 18.8%, driven by an increase of $3.4 million in interest income on loans and a decrease of $2.4 million in interest expense on deposits, partially offset by decreases of $0.9 million in interest and dividend income on taxable securities and $0.5 million in interest income on interest-earning deposits, and an increase of $0.4 million in interest expense on borrowed funds. Interest income on loans increased mainly due to an increase of $230.0 million in average balances of total loans and an increase of three basis points in the average yield on total loans, compared to the same period in the prior year. The increase in average balances of total loans was concentrated in commercial real estate loans, with smaller increases being attributable to commercial and industrial loans and residential mortgage loans, partially offset by a decrease in average balances of consumer loans. Average balances of total commercial loans increased $248.3 million compared to the same period in the prior year, and growth was relatively evenly distributed between the Corporation's Capital Bank and Canal Bank divisions in the Albany and Western New York markets, respectively. Average balances of commercial loans also grew in the Corporation's legacy Chemung Canal division, compared to the same period in the prior year. Average balances of residential mortgage loans increased $9.3 million compared to the same period in the prior year, mainly due to increased origination activity in the second half of 2025, and the retention of a larger percentage of total originated balances for investment. The decrease in average balances of consumer loans was primarily due to a decrease in average balances of indirect auto loans as a result of the Corporation continuing to prioritize other types of lending throughout 2025 and year to date in 2026. The increase in the average yield on total loans compared to the same period in the prior year was mainly due to an increase of 30 basis points in the average yield on residential mortgage loans, partially offset by a decrease of three basis points in the average yield on commercial loans. A decrease of one basis point in the average yield on consumer loans did not have a significant impact on net interest income. The increase in the average yield on residential mortgage loans was largely due to yields on mortgages originated during 2025 and year to date in 2026 generally being higher than the portfolio's average yield. The decrease in the average yield on commercial loans was largely due to a decrease in interest rates on variable rate commercial loans as a result of decreases in benchmark indices between the second quarters of 2025 and 2026. Interest expense on deposits decreased primarily due to a decrease of $118.7 million in average balances of total interest-bearing deposits, which included brokered deposits, and a decrease of 39 basis points in the average cost of total interest-bearing deposits, each compared to the same period in the prior year. Average balances of total interest-bearing deposits largely decreased due to a decrease of $91.6 million in average balances of brokered deposits compared to the same period in the prior year. Reduced reliance on brokered deposits in the current year period was primarily the result of the Corporation's balance sheet repositioning efforts during 2025, which included the runoff of all outstanding brokered deposits in the third quarter of 2025, as well as a shift in the Corporation's mix of wholesale funding sources in the current year period toward FHLBNY short-term advances. Also contributing to the decrease in average balances of total interest-bearing deposits was a decrease of $67.2 million in average balances of customer time deposits compared to the same period in the prior year, due to the discontinuation of longer-term, higher-cost promotions in the second half of 2025, in favor of shorter-term offerings at interest rates which were periodically reduced as market interest rates decreased, resulting in many previous promotional CDs not being renewed at maturity. Customer time deposits comprised 19.2% of total average deposits during the second quarter of 2026, compared to 21.3% during the same period in the prior year. These decreases were partially offset by an increase of $53.7 million in average balances of savings and money market deposits, compared to the same period in the prior year, largely concentrated in growth in the Corporation's Canal Bank division, as well as the introduction of a new escrow product during the current year period. The decrease in the average cost of total interest-bearing deposits was largely due to a decrease of 39 basis points in the average cost of customer time deposits and a decrease of 20 basis points in the average cost of savings and money market deposits, respectively, compared to the same period in the prior year, as well as the current year period including lower average balances of higher-cost brokered deposits, which decreased $91.6 million compared to the same period in the prior year. Similar to the decrease in average balances of customer time deposits, the decrease in the average cost was partially attributable to the discontinuation of certain longer-term, higher-cost promotions in the second half of 2025, which was in part due to a reduced necessity to fund loan growth via higher-cost time deposits following the Corporation's balance sheet repositioning during 2025. The decrease in the average cost of savings and money market deposits was mainly due to targeted reductions in tiered interest rates offered on money market deposits which occurred in the fourth quarter of 2025 and the first quarter of 2026 as market interest rates declined. Interest and dividend income on taxable securities decreased largely due to a decrease of $211.4 million in average balances of taxable securities, primarily due to sales of available for sale securities during the second quarter of 2025 as part of the balance sheet repositioning, as well as normal year-over-year net paydowns and maturities, totaling $26.9 million between the second quarters of 2025 and 2026. This decrease was partially offset by an increase of 18 basis points in the average yield on taxable securities, largely due to the sales of relatively lower-yielding available for sale securities in the second quarter of 2025. Interest income on interest-earning deposits decreased primarily due to a decrease of $40.9 million in average balances, compared to the same period in the prior year. Average balances of interest-earning deposits decreased mostly as a result of the Corporation utilizing cash proceeds from the sales of available for sale securities in 2025 to fund loan growth and pay off wholesale funding liabilities in the second half of 2025. Interest expense on borrowed funds increased largely due to an increase of $13.3 million in average balances of total borrowed funds, and an increase of 77 basis points in the average cost of total borrowed funds, each compared to the same period in the prior year. Both the increase in average balances and average cost of total borrowed funds were primarily due to the issuance of subordinated debt in the second quarter of 2025, resulting in an increase of $33.8 million in average balances of subordinated debt. Average balances of other sources of borrowed funds, including FHLBNY overnight and term advances, decreased $20.5 million compared to the same period in the prior year. Partially offsetting the overall increase in the average cost of total borrowings was a decrease of 57 basis points in the average cost of term advances and other debt, as a result of the declining market interest rate environment in the second half of 2025. Fully taxable equivalent net interest margin was 3.67% for the second quarter of 2026, compared to 3.05% for the same period in the prior year. Average interest-earning assets decreased $43.3 million, while average interest-bearing liabilities decreased $105.4 million, compared to the same period in the prior year, both primarily due to the net impact of the Corporation's balance sheet repositioning efforts in 2025. The average yield on interest-earning assets increased 35 basis points to 5.18%, while the average cost of interest-bearing liabilities decreased 30 basis points to 2.27%, each compared to the same period in the prior year. Total cost of funds was 1.67% for the current quarter, compared to 1.94% for the same period in the prior year, a decrease of 27 basis points. Provision for Credit Losses: Provision for credit losses was $0.6 million for the second quarter of 2026, compared to $1.1 million for the same period in the prior year, a decrease of $0.5 million. The decrease in provision expense was driven by stable model inputs in the current year period, partially offset by stronger total loan growth in the current year period, which totaled $55.4 million, compared to growth of $34.8 million during the same period in the prior year. Changes to model inputs, including deteriorations in U.S. unemployment and GDP forecasts, a decline in modeled prepayment speeds, and an increase in qualitative factor adjustment rates, each contributed to the higher provision in the prior year period. Net charge-offs totaled $0.2 million for the second quarter of 2026, compared to $1.0 million for the same period in the prior year. However, $0.8 million in balances charged-off in the prior year period had previously been specifically reserved against; excluding those loans noted above, net charge-offs were comparable between the two periods. Non-Interest Income: Non-interest income for the second quarter of 2026 was $6.5 million, compared to negative non-interest income of $10.7 million for the same period in the prior year. The Corporation recognized a pre-tax loss of $17.5 million on the sale of a portion of its available for sale securities portfolio as part of its balance sheet repositioning efforts during 2025. Recurring non-interest income (see Non-GAAP reconciliations), which excludes the loss on the sale of available for sale securities and the gain on the sale of a previous branch property in the prior year period, increased $0.3 million, or 5.5%, compared to the same period in the prior year. The increase was driven by increases of $0.2 million in each of wealth management group fee income and the change in fair value of equity investments. Wealth management group fee income increased mainly due to an increase in total assets under management, while the increase in the change in fair value of equity investments was mostly due to an increase in the market value of the Corporation's deferred compensation plan. Both increases were largely due to improvements in financial markets between the second quarters of 2025 and 2026. Non-Interest Expense: Non-interest expense for the second quarter of 2026 was $19.3 million, compared to $17.8 million for the same period in the prior year, an increase of $1.5 million, or 8.4%, driven by increases of $0.5 million in salaries and wages and $0.4 million in other non-interest expense. Salaries and wages increased primarily due to increased expense recognition relating to the Corporation's deferred compensation plan, as well as annual merit-based increases in base salaries, each compared to the same period in the prior year. Other non-interest expense increased largely due to a $0.3 million write-down of a legacy non-marketable equity investment following the Corporation's reassessment of the investment's carrying value, which included additional qualitative information regarding its expected recoverability. Income Tax Expense: Income tax expense for the second quarter of 2026 was $2.5 million, compared to a tax benefit of $2.4 million for the same period in the prior year, an increase of $4.9 million. The increase in income tax expense was primarily due to the loss recognized on the Corporation's sales of available for sale securities in the second quarter of 2025. As of June 30, 2026, the Corporation maintained a valuation allowance of $0.8 million in relation to deferred tax benefits associated with the prior year's loss on sales of available for sale securities. Asset Quality Non-performing loans totaled $9.2 million, or 0.39% of total loans, as of June 30, 2026, compared to $7.9 million, or 0.35% of total loans as of December 31, 2025. The increase was largely driven by the addition of commercial loans with balances totaling $4.6 million into non-performing status during the six months ended June 30, 2026, including one commercial and industrial loan with a balance of $2.2 million and one commercial real estate loan with a balance of $2.0 million. Partially offsetting the increase was the transfer of $2.0 million in commercial real estate loan balances to other real estate owned during the six months ended June 30, 2026, net of $0.3 million in related charge-offs, as well as the payoff of two nonaccrual commercial real estate loans, totaling $0.6 million, and $0.2 million in net paydowns on other non-performing commercial loans. Total non-performing retail loans decreased $0.5 million as of June 30, 2026, compared to December 31, 2025. Non-performing assets totaled $11.2 million, or 0.40% of total assets as of June 30, 2026, compared to $8.2 million, or 0.30% of total assets as of December 31, 2025. In addition to $9.2 million in non-performing loans, non-performing assets include other real estate owned and repossessed vehicles. There was $1.9 million in other real estate owned as of June 30, 2026, all of which was obtained during the first quarter of 2026, including four properties with a fair value of $1.7 million relating to one commercial relationship. Repossessed vehicles were $0.2 million as of June 30, 2026 compared to $0.3 million as of December 31, 2025. Delinquent loans, inclusive of delinquent non-performing loans, totaled $10.9 million, or 0.46% of total loans, as of June 30, 2026, compared to $11.2 million, or 0.49% of total loans, as of December 31, 2025, a decrease of $0.3 million. The decrease in total delinquent loans was mostly due to the transfer of balances associated with two commercial real estate loans to other real estate owned, totaling $2.0 million, net of related charge-offs. Balances of other delinquent commercial loans increased approximately $0.2 million compared to December 31, 2025. Also contributing to the overall decrease was a decrease of $1.1 million in total delinquent consumer loans. Partially offsetting the decrease in total loan delinquencies was an increase of $2.6 million in residential mortgage loan delinquencies, which was driven by a single $1.9 million mortgage which was delinquent as of June 30, 2026 but was subsequently brought current. Annualized net charge-offs for the six months ended June 30, 2026 totaled 0.01%, compared to 0.12% for the six months ended June 30, 2025, a decrease of 11 basis points. Minimal net charge-off experience for the current year period was mainly due to a $0.7 million recovery of a commercial and industrial loan that had previously been charged-off during the second quarter of 2025. The charge-off of this loan in the prior year period, followed by its recovery in the current year period, was the primary driver of the favorable variance in net charge-off rates between the two periods. Partially offsetting the $0.7 million recovery in the current year period were $0.3 million in charge-offs of commercial real estate loans concurrent with transfers to other real estate owned, as well as $0.5 million in consumer loan net charge-offs. Commercial loans and residential mortgage loans each had net recovery rates during the current year period, while consumer loan net charge-offs were 0.38% of average consumer loan balances, annualized. Annualized net charge-offs for the second quarter of 2026 were 0.03%, compared to net recoveries of previously charged-off loans of 0.02% for the prior quarter and net charge-offs of 0.19% for the second quarter of 2025, an increase of five basis points compared to the prior quarter and a decrease of 16 basis points compared to the second quarter of 2025, respectively. The increase in the net charge-off rate compared to the prior quarter was largely due to the $0.7 million recovery of a commercial and industrial loan charge-off in the prior quarter, while the decrease compared to the second quarter of 2025 was also due to the $0.7 million charge-off of the same commercial and industrial loan during the prior year quarter. Commercial loans and residential mortgage loans each had net recovery rates for the second quarter of 2026, while consumer loan net charge-offs were 0.31% of average consumer loan balances, annualized. The allowance for credit losses on loans was $25.2 million as of June 30, 2026, compared to $24.2 million as of December 31, 2025. The allowance for credit losses on unfunded commitments, a component of other liabilities, was $0.7 million as of June 30, 2026 and $0.6 million as of December 31, 2025. The increase in the allowance for credit losses on loans was driven by $1.3 million in specific reserve allocations made during the first six months of 2026, including $1.2 million in allocations on one non-owner occupied commercial real estate loan. These allocations were partially offset by charge-offs of specific reserves related to loans transferred to other real estate owned during the first six months of 2026. Also contributing to the increase in the allowance were commercial real estate loan growth and additional qualitative adjustments made during the current year period. Partially offsetting the increase was the impact of annual updates to the Corporation's CECL model, which are implemented in the first quarter each year. The current year update resulted in a net decrease in total modeled loss rates. The ratio of allowance for credit losses on loans to total loans was 1.07% as of both June 30, 2026 and December 31, 2025, while the allowance for credit losses on loans was 275.46% of non-performing loans as of June 30, 2026 and 306.13% as of December 31, 2025. Balance Sheet ActivityTotal assets were $2.820 billion as of June 30, 2026, compared to $2.710 billion as of December 31, 2025, an increase of $110.0 million, or 4.1%. This increase was driven by increases of $97.6 million in loans, net of deferred origination costs, and $23.0 million in total cash and cash equivalents, partially offset by a decrease of $11.6 million in securities available for sale. Loans, net of deferred origination costs, increased due to an increase of $111.8 million in total commercial loans, partially offset by a decrease of $14.2 million in consumer loans, each compared to prior year-end. Residential mortgage loans were in line with prior year-end. The increase in total commercial loans was mainly due to increases in non-owner occupied commercial real estate loans and construction loans, along with smaller increases in commercial and industrial loans and owner occupied commercial real estate loans, each compared to prior year-end. The Corporation's Canal Bank division was responsible for the largest portion of the increase in total commercial loans, contributing $61.7 million to the overall increase, followed by the Capital Bank division, contributing $54.2 million. Consumer loans decreased primarily due to net runoff of indirect auto loans, as the Corporation continues prioritizing other types of lending. Partially offsetting the decrease in consumer loans was an increase in home equity lines and loans, mainly the result of a home equity line campaign that began late in the second quarter of 2026. Residential mortgage loans were comparable to prior year-end, with loan origination levels continuing to be negatively impacted by the current interest rate environment. Cash and cash equivalents increased primarily due to an increase of $93.3 million in total deposits and $11.4 million in paydowns and maturities of available for sale securities, each compared to prior year-end, and net cash provided by operating activities, largely offset by an increase of $97.6 million in loans, net of deferred origination costs, compared to prior year-end. Securities available for sale decreased largely due to year to date net paydowns and maturities totaling $11.4 million, partially offset by an increase in the fair value of securities of $0.1 million, compared to prior year-end. Total liabilities were $2.550 billion as of June 30, 2026, compared to $2.456 billion as of December 31, 2025, an increase of $94.3 million, or 3.8%. This increase was driven by increases of $93.3 million in total deposits and $2.3 million in advances and other debt. The increase in total deposits reflected growth of $57.4 million in non interest-bearing deposits and $35.9 million in total interest-bearing deposits, each compared to prior year-end. Growth in non interest‑bearing deposits reflected inflows from both commercial and consumer customers. Consumer non interest-bearing deposit growth was partially due to targeted checking account promotional activity, including enhanced debit card reward program incentives at account opening, during January through April of the current year. Non interest-bearing deposits comprised 28.8% and 27.5% of total deposits as of June 30, 2026 and December 31, 2025, respectively. Growth in interest-bearing deposits was attributable to inflows of municipal deposits, partially offset by declines in interest-bearing consumer and commercial deposits. Inflows of money market deposits contributed the majority of the increase in total interest-bearing deposits, increasing $79.4 million compared to prior year-end, and included a meaningful increase in insured cash sweep (ICS) deposits for municipalities. In addition, the introduction of new escrow products during the current year supported the increase in money market deposits. Also contributing to the increase in total interest-bearing deposits was an increase of $1.9 million in savings deposits. Time deposits and interest-bearing demand deposits decreased $31.2 million and $14.1 million, respectively. The decrease in time deposits was largely due to previous CD campaign specials which matured and were not renewed. The decrease in interest-bearing demand deposits reflected outflows for both commercial and consumer customers. Advances and other debt increased primarily due to an increase in total loans, partially offset by an increase in total deposits. Advances and other debt as of June 30, 2026 consisted of a $47.0 million FHLBNY short-term advance, maturing in July 2026, a $42.6 million FHLBNY overnight advance, and $3.3 million in finance lease liabilities. Total shareholders’ equity was $270.4 million as of June 30, 2026, compared to $254.7 million as of December 31, 2025, an increase of $15.7 million, or 6.1%, driven by an increase of $14.7 million in retained earnings, mostly due to net income for the six months ended June 30, 2026, totaling $18.0 million, partially offset by dividends declared of $3.3 million during the six months ended June 30, 2026. Also contributing to the increase in total shareholders' equity was a decrease of $0.7 million in treasury stock, largely due to distributions relating to annual restricted stock awards. The total equity to total assets ratio was 9.59% as of June 30, 2026, compared to 9.40% as of December 31, 2025, and the tangible equity to tangible assets ratio was 8.88% as of June 30, 2026, compared to 8.66% as of December 31, 2025.1 Book value per share and tangible book value per share increased to $55.88 and $51.37, respectively, as of June 30, 2026, from $52.97 and $48.43, respectively, as of December 31, 2025.1 As of June 30, 2026, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action. 1 See the GAAP to Non-GAAP reconciliations. Wealth Management Group and CFS GroupThe market value of total assets under management or administration in our Wealth Management Group was $2.494 billion as of June 30, 2026, including $328.2 million of assets under management or administration for the Corporation, compared to $2.338 billion as of December 31, 2025, including $301.8 million of assets under management or administration for the Corporation, an increase of $155.1 million, or 6.6%. Excluding assets under management or administration for the Corporation, the total market value of Wealth Management Group assets increased $128.6 million, or 6.3%, largely due to improvements in financial markets during the first six months of 2026, compared to conditions as of December 31, 2025. Total fee income attributable to the Wealth Management Group for the six months ended June 30, 2026 was $6.3 million, compared to $5.9 million for the same period in the prior year, an increase of $0.4 million, or 6.8%. As of June 30, 2026, CFS Group had total client assets of $319.4 million, including $114.6 million of advisory assets under management, compared to client assets of $299.4 million, including $104.1 million of advisory assets under management, as of December 31, 2025, an increase of $20.0 million in total client assets and $10.5 million in advisory assets. Total CFS Group fee and commission income for the six months ended June 30, 2026 was $0.9 million, compared to $0.5 million for the same period in the prior year, an increase of $0.4 million, or 80.0%. The increase in total CFS Group fee and commission income was largely due to recognition of additional income in the current year period following contractual changes to its broker-dealer agreement, improvements in financial markets during the first six months of 2026, and organic client growth across the Corporation's footprint. LiquidityThe Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits of $250,000 or greater, brokered deposits, FHLBNY overnight and term advances, and FRB advances. Borrowings may be used on a short-term basis for liquidity purposes or on a long-term basis to fund asset growth. As of June 30, 2026, the Corporation's cash and cash equivalents balance was $73.1 million. Following the sales of a significant portion of available for sale securities in the prior year, the Corporation continues to maintain an investment portfolio of securities available for sale, consisting of government-sponsored entity mortgage-backed securities and collateralized mortgage obligations, municipal bonds, and corporate bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if needed. As of June 30, 2026, the Corporation's investment in securities available for sale was $269.0 million, $67.0 million of which was not pledged as collateral. Additionally, as of June 30, 2026, the Bank's total advance line capacity at the Federal Home Loan Bank of New York was $180.9 million, $89.6 million of which was utilized and $91.3 million of which was available. As of June 30, 2026, uninsured deposits totaled $744.4 million, or 31.5% of total deposits, including $174.2 million of municipal deposits collateralized by pledged assets, when required. As of December 31, 2025, uninsured deposits totaled $682.5 million, or 30.1% of total deposits, including $161.4 million of municipal deposits collateralized by pledged assets, when required. Due to their fluidity, the Corporation closely monitors uninsured deposit levels when considering liquidity management strategies. The Corporation had no outstanding brokered deposits as of June 30, 2026 or December 31, 2025. The Corporation may use brokered deposits in the future in funding asset growth or as an additional source of liquidity in supporting ongoing operations. Other Items As previously announced on January 8, 2021, the Corporation's Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. As of June 30, 2026, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the second quarter of 2026. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares as of June 30, 2026. During July 2026, the Office of the Comptroller of the Currency conditionally approved the Bank's application to convert its state charter in the State of New York to a national bank charter. The Bank expects to complete its charter conversion to a national bank prior to the end of 2026. About Chemung Financial Corporation Chemung Financial Corporation is a $2.8 billion financial services holding company headquartered in Elmira, New York and operates 30 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance. This press release may be found at: www.chemungcanal.com under Investor Relations. Forward-Looking StatementsThis press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation's expected financial position and operating results, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." The Corporation cannot guarantee that its expectations in such forward-looking statements will turn out to be correct. The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, difficulties in managing the Corporation’s growth, competition, geopolitical conflicts, changes in law or the regulatory environment, and changes in general business and economic trends. Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2025 Annual Report on Form 10-K. These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise. For further information contact:Dale M. McKim, III, EVP and [email protected]: 607-737-3714 Chemung Financial Corporation GAAP to Non-GAAP Reconciliations (Unaudited) The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements. In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them. Fully Taxable Equivalent Net Interest Income and Net Interest Margin Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt obligations, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices. Efficiency Ratio The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent. Tangible Equity and Tangible Assets (Period-End) Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and other intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. Tangible Equity (Average) Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and other intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. Adjustments for Certain Items of Income or Expense In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROAA, and ROAE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G. Category: FinancialSource: Chemung Financial Corp

Hancock Whitney (HWC) came out with quarterly earnings of $1.55 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this holding company of Whitney Bank and Hancock Bank would post earnings of $1.48 per share when it actually produced earnings of $1.52, delivering a surprise of +2.7%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hancock Whitney, which belongs to the Zacks Banks - Southeast industry, posted revenues of $401.36 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $375.48 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hancock Whitney shares have added about 21.4% since the beginning of the year versus the S&P 500's gain of 8.7%. While Hancock Whitney has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hancock Whitney was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.64 on $411.43 million in revenues for the coming quarter and $6.47 on $1.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Chemung Financial (CHMG), has yet to report results for the quarter ended June 2026. This financial holding company is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +29.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Chemung Financial's revenues are expected to be $31.1 million, up 207.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report Chemung Financial Corp (CHMG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ELMIRA, N.Y., April 17, 2026 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $9.2 million, or $1.91 per share, for the first quarter of 2026, compared to net income of $7.7 million, or $1.61 per share, for the fourth quarter of 2025, and net income of $6.0 million, or $1.26 per share, for the first quarter of 2025. “Record quarterly earnings validate the Corporation's strategic initiatives in recent years, including our entrance into the Western New York market and a balance sheet repositioning in 2025, both of which significantly contributed to first quarter results," said Anders M. Tomson, President and CEO of Chemung Financial Corporation. “For an institution with over 190 years of history, delivering record performance can only be achieved through thoughtful execution and a sustained commitment to improvement," added Tomson. "While our geographic footprint has expanded in recent years, our success remains dependent on the values which have served the Corporation well in its past. Attainment of results at this level is only maintainable by continuing to support the communities in each of our markets," stated Tomson. "As we reflect on the milestones achieved this quarter, we remain as focused as ever on delivering consistent and durable performance in the periods ahead," Tomson concluded. First Quarter 2026 Highlights: Net income and earnings per share of $9.2 million and $1.91, respectively, each represent the highest quarterly earnings in Chemung Financial Corporation's history, and exceeded previous quarterly records by 14.6% and 11.0%, respectively. Quarterly adjusted efficiency ratio of 58.27% was also the lowest in the Corporation's history, an improvement of 1.85% compared to the fourth quarter of 2025 and 7.37% compared to the first quarter of 2025. 1 Annualized loan growth totaled 7.5%, including period-end growth of nearly 15% in the Western New York Canal Bank division. Loan growth in the Capital Bank division exceeded 7%, annualized. In March, the Corporation opened a representative office in downtown Buffalo, New York to support the growing operations of its Canal Bank division. Dividends declared during the first quarter of 2026 were $0.34 per share. 1 See the GAAP to Non-GAAP reconciliations. 1st Quarter 2026 vs 4th Quarter 2025 Net Interest Income: 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%, driven by decreases of $0.4 million in interest income on interest-earning deposits and $0.3 million in interest income on loans, as well as an increase of $0.5 million in interest expense on borrowed funds, partially offset by a decrease of $0.9 million in interest expense on deposits. Interest income on interest-earning deposits decreased largely due to a decline of $32.7 million in average balances of interest-earning deposits, compared to the prior quarter, primarily due to an increase of $69.1 million in average balances of total loans and a decline of $21.3 million in average balances of total deposits. Interest income on loans decreased mainly due to a decrease of ten basis points in the average yield on total loans, despite the increase in average balances of total loans. The decrease in the average yield on total loans was primarily due to a decrease of 14 basis points in the average yield on commercial loans, following a cumulative reduction of 75 basis points in the Federal Funds Target Range Upper Limit between September and December 2025, resulting in repricing of a portion of the variable rate commercial loan portfolio, particularly impacting loans with interest rates based on Prime and SOFR indices. Also contributing to the decrease in the average yield on commercial loans was lower levels of fee income associated with payoffs and prepayment penalties in the current quarter, compared to the prior quarter. The average yield on consumer loans also decreased 14 basis points compared to the prior quarter, similarly due to the impact of the decrease in the Federal Funds Target Range Upper Limit on home equity lines of credit, as well as decreases in interest rates offered through the Corporation's indirect auto lending program during the current quarter. The increase in average balances of total loans was concentrated in commercial loans, which increased $74.7 million compared to the prior quarter, and was partially offset by a decline of $7.0 million in average balances of consumer loans. The increase in average balances of commercial loans was concentrated in non-owner occupied commercial real estate loans, and increases were relatively evenly distributed between the Corporation's Canal Bank and Capital Bank divisions in the Western New York and Albany area markets, respectively. Average balances of consumer loans declined largely due to a decrease in average balances of indirect auto loans. This segment continues to experience net runoff as the Corporation prioritizes funding other types of lending. Interest expense on borrowed funds increased largely due to an increase of $50.7 million in average balances of total borrowings, including increases of $29.6 million and $21.1 million, respectively, in average balances of term advances and other debt, and FHLBNY overnight advances. The increase in average balances of total borrowings was largely due to a decrease in average balances of total deposits and an increase in average balances of total loans, each compared to the prior quarter. Interest expense on deposits decreased mainly due to a decrease of 16 basis points in the average cost of total customer interest-bearing deposits, compared to the prior quarter, mostly due to decreases of 23 and eight basis points, respectively, in the average cost of savings and money market deposits, and interest-bearing demand deposits. The decrease in the average cost of savings and money market deposits was primarily due to targeted and tiered reductions in interest rates on existing money market accounts during both the prior quarter and the current quarter to better align with changes in market interest rates. The decrease in the average cost of interest-bearing demand deposits was partially due to relationship-based repricing, as well as lower average balances of municipal deposits in the current quarter, which are generally higher cost than comparable consumer and commercial deposits. Partially offsetting the decrease in total interest expense on deposits was an increase of $0.3 million in interest expense on brokered deposits, attributable to an increase of $31.7 million in average balances compared to the prior quarter. Fully taxable equivalent net interest margin was 3.60% for the current quarter, compared to 3.61% for the prior quarter. Average interest-earning assets increased $37.0 million and average interest-bearing liabilities increased $30.8 million during the first quarter, compared to the prior quarter. The average yield on interest-earning assets decreased five basis points to 5.13%, while the average cost of interest-bearing liabilities decreased seven basis points to 2.27%, each compared to the prior quarter. Total cost of funds was 1.67% for the current quarter, compared to 1.72% for the prior quarter, a decrease of five basis points. Provision for Credit Losses: Provision for credit losses was $0.6 million for the first quarter of 2026, compared to $1.1 million for the prior quarter. The decrease in provision was largely due to a $0.7 million recovery of a previously charged-off commercial loan and the impact of the annual update and recalibration of loss drivers used in the Corporation's CECL model, which is implemented in the first quarter each year. The current year update resulted in a net decrease in modeled loss rates. Also contributing to the decrease was lower loan growth in the current quarter, compared to the prior quarter. Partially offsetting the decrease were specific allocations of $1.2 million on two commercial loans made during the current quarter, and an increase in qualitative adjustments applied to the CECL model. Non-Interest Income: Non-interest income for the first quarter of 2026 totaled $6.3 million, compared to $6.7 million for the prior quarter, a decrease of $0.4 million, or 6.0%, driven by decreases of $0.1 million in each of other non-interest income, change in fair value of equity investments, gains on sales of loans held for sale, and interchange revenue. The decrease in other non-interest income was largely due to receipt of interest from the IRS in relation to the Corporation's ERTC in the prior quarter, partially offset by an increase in debit card related incentive and support revenue in the current quarter, compared to the prior quarter. The decrease in change in fair value of equity investments was largely due to a decrease in the market value of the Corporation's deferred compensation plan, due to declines in financial markets during the current quarter, partially due to ongoing geopolitical events. Gains on loans held for sale decreased due to a decrease in the volume of residential mortgage loans originated and held for sale in the current quarter, compared to the prior quarter. The decrease in interchange revenue was primarily due to a decline in transaction volume in the current quarter, compared to the prior quarter, due to seasonal holiday spending in the prior quarter. Non-Interest Expense: Non-interest expense for the first quarter of 2026 totaled $17.5 million, compared to $18.4 million for the prior quarter, a decrease of $0.9 million, or 4.9%, driven by decreases of $0.4 million in pension and other employee benefits, and $0.3 million in each of other non-interest expense and salaries and wages. The decrease in pension and other employee benefits was primarily due to a decrease in employee healthcare-related expenses compared to the prior quarter. Other non-interest expense decreased largely due to the acceleration of certain charitable contributions during the prior quarter, as well as recurring annual giving in the prior quarter, which primarily occurs in the fourth quarter each year. The decrease in salaries and wages was mainly due to a decrease in incentive-based compensation expense in the current quarter, compared to the prior quarter. Income Tax Expense: Income tax expense for the first quarter of 2026 was $2.6 million, compared to $3.3 million for the prior quarter, a decrease of $0.7 million. The decrease in income tax expense was primarily due to a valuation allowance of $0.8 million being established in the prior quarter, associated with deferred tax assets related to sales of available for sale securities during 2025, partially offset by an increase in pre-tax income. The effective tax rate for the current quarter decreased to 22.3%, compared to 29.6% for the prior quarter. 1st Quarter 2026 vs 1st Quarter 2025 Net Interest Income: Net interest income for the first quarter of 2026 totaled $23.6 million, compared to $19.8 million for the same period in the prior year, an increase of $3.8 million, or 19.2%, driven by an increase of $3.4 million in interest income on loans and a decrease of $2.6 million in interest expense on deposits, partially offset by a decrease of $1.3 million in interest and dividend income on taxable securities and an increase of $0.7 million in interest expense on borrowed funds. Interest income on loans increased mainly due to an increase of $214.5 million in average balances of total loans and an increase of ten basis points in the average yield on total loans, compared to the same period in the prior year. The increase in average balances of total loans was concentrated in commercial real estate loans, with smaller increases being attributable to commercial and industrial loans and residential mortgages, partially offset by a decrease in average balances of consumer loans. Average balances of total commercial loans increased $233.0 million compared to the same period in the prior year, led by growth in the Corporation's Capital Bank division in the Albany market, as well as significant growth in the Canal Bank division in the Western New York market. Average balances of residential mortgages increased $10.7 million compared to the same period in the prior year, mainly due to increased origination activity compared to the same period in the prior year, and the retention of a larger percentage of total originated balances for investment. The decrease in average balances of consumer loans was primarily due to a decrease in average balances of indirect auto loans as a result of the Corporation continuing to prioritize other types of lending throughout 2025 and year to date in 2026. The increase in the average yield on total loans compared to the same period in the prior year was mainly due to an increase of 45 basis points in the average yield on residential mortgages, and to a lesser degree a three basis point increase in the average yield on commercial loans. The increase in the average yield on residential mortgages was largely due to yields on mortgages originated during 2025 and year to date in 2026 generally being higher than the portfolio's average yield. The increase in the average yield on commercial loans was largely due to strong origination volumes during 2025, partially offset by a decrease in interest rates on variable rate commercial loans as a result of decreases in benchmark indices between the first quarters of 2025 and 2026. Interest expense on deposits decreased primarily due to a decrease of 43 basis points in the average cost of total interest-bearing deposits and a decrease of $135.5 million in average balances of total interest-bearing deposits, which included brokered deposits. The decrease in the average cost of total interest-bearing deposits was largely due to a decrease of 57 basis points in the average cost of customer time deposits and a decrease of 19 basis points in the average cost of savings and money market deposits, respectively, compared to the same period in the prior year, as well as the current year period including lower average balances of higher-costing brokered deposits, which decreased $81.1 million compared to the same period in the prior year. The decrease in the average cost of customer time deposits was largely the result of the discontinuation of longer-term, higher-cost promotions in the second half of 2025, in favor of shorter-term offerings at interest rates which were periodically reduced as market interest rates decreased. This was also a primary reason for the decrease in average balances of customer time deposits, which decreased $52.3 million compared to the same period in the prior year. Customer time deposits comprised 19.9% of total average deposits during the first quarter of 2026, compared to 21.1% during the same period in the prior year. The decrease in the average cost of savings and money market deposits was mainly due to targeted reductions in tiered interest rates offered on money market deposits which occurred in the fourth quarter of 2025 and the first quarter of 2026 as market interest rates declined. Interest and dividend income on taxable securities decreased largely due to a decrease of $257.5 million in average balances of taxable securities, primarily due to sales of available for sale securities during the second quarter of 2025 as part of the balance sheet repositioning, as well as normal year-over-year net paydowns and maturities, totaling $35.9 million between the first quarters of 2025 and 2026. The average yield on taxable securities was comparable to the same period in the prior year, decreasing one basis point. Interest expense on borrowed funds increased largely due to an increase of $38.6 million in average balances of total borrowed funds, and an increase of 120 basis points in the average cost of total borrowed funds, each compared to the same period in the prior year. Both the increase in average balances and average cost of total borrowed funds were primarily due to the issuance of subordinated debt in the second quarter of 2025, resulting in an increase of $44.0 million in average balances of subordinated debt. Average balances of other sources of borrowed funds, including FHLBNY overnight and term advances, decreased $5.4 million compared to the same period in the prior year. Partially offsetting the overall increase in the average cost of total borrowings were decreases of 72 and 68 basis points in the average cost of FHLBNY overnight advances, and term advances and other debt, respectively, as a result of the declining market interest rate environment in the second half of 2025. Fully taxable equivalent net interest margin was 3.60% for the first quarter of 2026, compared to 2.96% for the same period in the prior year. Average interest-earning assets decreased $67.5 million, while average interest-bearing liabilities decreased $96.9 million, compared to the same period in the prior year, both primarily due to the net impact of the Corporation's balance sheet repositioning efforts in 2025. The average yield on interest-earning assets increased 41 basis points to 5.13%, while the average cost of interest-bearing liabilities decreased 28 basis points to 2.27%, each compared to the same period in the prior year. Total cost of funds was 1.67% for the current quarter, compared to 1.92% for the same period in the prior year, a decrease of 25 basis points. Provision for Credit Losses: Provision for credit losses was $0.6 million for the first quarter of 2026, compared to $1.1 million for the same period in the prior year, a decrease of $0.5 million. The decrease was largely due to the impact of the annual update and recalibration of loss drivers used in the Corporation's CECL model, which is implemented in the first quarter each year, and resulted in a decrease in modeled loss rates in the current year period, compared to the prior year update, which resulted in an increase in modeled loss rates. Also contributing to the decrease was a $0.7 million recovery of a previously charged-off commercial loan. Partially offsetting the decrease were $1.2 million in specific allocations made in the current year period on two commercial loans, an increase in qualitative adjustments made to the CECL model in the first quarter of 2026, and an increase in loan growth compared to the same period in the prior year. Non-Interest Income: Non-interest income for the first quarter of 2026 was $6.3 million, compared to $5.9 million for the same period in the prior year, an increase of $0.4 million, or 6.8%, driven by increases of $0.3 million in each of other non-interest income and wealth management group fee income, partially offset by a decrease of $0.1 million in service charges on deposit accounts. The increase in other non-interest income was mainly due to recognition of additional commissions in the current quarter from a broker-dealer affiliated with CFS Group following contractual changes. Wealth management group fee income increased largely due to an increase in total assets under management in the current period, mainly due to improvements in financial markets during the last three quarters of 2025. The decrease in service charges on deposit accounts was primarily due to a decrease in NSF fees compared to the same period in the prior year. Non-Interest Expense: Non-interest expense for the first quarter of 2026 was $17.5 million, compared to $16.9 million for the same period in the prior year, an increase of $0.6 million, or 3.6%, driven by increases of $0.4 million in salaries and wages and $0.2 million in pension and other employee benefits. Salaries and wages increased primarily due to an increase in expenses relating to annual incentives, as well as merit- based increases in base salaries, compared to the same period in the prior year. Pension and other employee benefits increased mainly due to an increase in employee healthcare-related expenses. Income Tax Expense: Income tax expense for the first quarter of 2026 was $2.6 million, compared to $1.7 million for the same period in the prior year, an increase of $0.9 million. The increase in income tax expense was largely due to an increase in pretax income. The effective tax rate for the current quarter increased to 22.3%, compared to 21.6% for the same period in the prior year. Asset Quality Non-performing loans totaled $7.6 million, or 0.33% of total loans, as of March 31, 2026, compared to $7.9 million, or 0.35% of total loans as of December 31, 2025. The decrease was driven by the transfer of $2.0 million in commercial real estate loan balances to other real estate owned during the first quarter, net of $0.3 million in related charge-offs, as well as the $0.5 million payoff of a nonaccrual commercial real estate loan. These decreases were partially offset by the addition of two commercial loans into non-performing status during the first quarter, totaling $2.2 million. Total non- performing retail loans decreased $0.1 million as of March 31, 2026, compared to December 31, 2025. Non-performing assets totaled $9.8 million, or 0.36% of total assets as of March 31, 2026, compared to $8.2 million, or 0.30% of total assets as of December 31, 2025. There was $1.9 million in other real estate owned as of March 31, 2026, all of which was obtained during the first quarter, including four properties with a fair value of $1.7 million relating to one commercial relationship. Repossessed vehicles were $0.2 million as of March 31, 2026 compared to $0.3 million as of December 31, 2025. Delinquent loans, inclusive of delinquent non-performing loans, totaled $9.6 million, or 0.42% of total loans, as of March 31, 2026, compared to $11.2 million, or 0.49% of total loans, as of December 31, 2025, a decrease of $1.6 million. The decrease in total delinquent loans was mostly due to the transfer of two commercial real estate loans to other real estate owned, totaling $2.0 million, net of related charge-offs. Also contributing to the overall decrease were decreases of $0.7 million and $0.3 million in total delinquent consumer loans and residential mortgage loans. Partially offsetting these decreases was an increase of $1.1 million in delinquent commercial and industrial loans. Annualized net recoveries of previously charged-off loans for the first quarter of 2026 were 0.02%, compared to net charge-offs of 0.09% for the prior quarter and net charge-offs of 0.05% for the first quarter of 2025, decreases of 11 and seven basis points, respectively. The net recovery rate in the first quarter of 2026 was mainly due to a $0.7 million recovery of a commercial and industrial loan which had been charged-off during 2025. Partially offsetting the improvement in the Corporation's net charge-off rate compared to both the prior quarter and the first quarter of 2025 were $0.3 million in charge-offs of commercial real estate loans concurrently with transfers to other real estate owned. Commercial loans and residential mortgage loans each had net recovery rates for the first quarter of 2026, while consumer loan charge-offs were 0.45% of average consumer loan balances, annualized. The allowance for credit losses on loans was $24.9 million as of March 31, 2026, compared to $24.2 million as of December 31, 2025. The allowance for credit losses on unfunded commitments, a component of other liabilities, was $0.6 million as of both March 31, 2026 and December 31, 2025. The increase in the allowance for credit losses on loans was driven by $1.2 million in specific reserve allocations made during the first quarter of 2026, including a $1.0 million allocation on a non-owner occupied commercial real estate loan. These allocations were partially offset by charge-offs of specific reserves related to loans transferred to other real estate owned during the first quarter of 2026 and a net recovery rate for the quarter, largely attributable to a $0.7 million recovery of a commercial and industrial loan charged- off during 2025. Also contributing to the increase in the allowance were additional qualitative adjustments made in the first quarter. Partially offsetting the increase in the allowance was the impact of annual updates to the Corporation's CECL model, which are implemented in the first quarter each year. The current year update resulted in a net decrease in total modeled loss rates. The ratio of allowance for credit losses on loans to total loans was 1.08% as of March 31, 2026 and 1.07% as of December 31, 2025, while the allowance for credit losses on loans was 326.34% of non- performing loans as of March 31, 2026 and 306.13% as of December 31, 2025. Balance Sheet Activity Total assets were $2.749 billion as of March 31, 2026, compared to $2.710 billion as of December 31, 2025, an increase of $38.5 million, or 1.4%. This increase was driven by increases of $42.1 million in loans, net of deferred origination costs and $3.3 million in total cash and cash equivalents, partially offset by a decrease of $5.3 million in securities available for sale. Loans, net of deferred origination fees and costs, increased due to an increase of $52.6 million in total commercial loans, partially offset by decreases of $9.6 million and $0.9 million in total consumer loans and residential mortgages, respectively, compared to prior year-end. The increase in total commercial loans was mainly due to increases in non- owner occupied commercial real estate loans and construction loans, partially offset by decreases in owner occupied commercial real estate loans and commercial and industrial loans, each compared to prior year-end. The Corporation's Canal Bank division was responsible for the largest portion of the increase in total commercial loans, followed by the Capital Bank division. Total consumer loans decreased primarily due to net runoff of indirect auto loans, as the Corporation continues prioritizing other types of lending. Partially offsetting the decrease in total consumer loans was an increase in home equity lines and loans. Residential mortgages were comparable with prior year-end. Cash and cash equivalents increased primarily due to an increase of $43.2 million in total deposits and $5.6 million in paydowns and maturities of available for sale securities, largely offset by a decrease of $11.5 million in advances and other debt, and an increase of $42.1 million in loans, net of deferred origination costs. Securities available for sale decreased largely due to year to date net paydowns and maturities totaling $5.6 million, partially offset by an increase in the fair value of securities of $0.4 million compared to prior year-end. Total liabilities were $2.486 billion as of March 31, 2026, compared to $2.456 billion as of December 31, 2025, an increase of $30.3 million, or 1.2%. This increase was driven by an increase of $43.2 million in total deposits, partially offset by a decrease of $11.5 million in advances and other debt. The increase in total deposits reflected growth of $26.7 million in total interest-bearing deposits and $16.5 million in non interest-bearing deposits, each compared to prior year-end. Growth in interest-bearing deposits was largely attributable to seasonal inflows of municipal deposits associated with tax collection activity, partially offset by declines in interest- bearing consumer deposits. Money market accounts contributed the majority of the increase in total interest-bearing deposits, increasing $31.3 million compared to prior year-end, while interest-bearing demand deposits increased $4.5 million. These increases were partially offset by decreases of $5.7 million in time deposits and $3.4 million in savings deposits, respectively. Interest rates offered on customer time deposits as of March 31, 2026 were comparable to prior year-end, with the decrease in balances largely reflecting deposits which matured and were not renewed. The increase in non interest-bearing deposits mainly reflected targeted checking account promotional activity, including enhanced debit card reward program incentives at account opening. The increase was relatively evenly distributed between consumer, commercial, and municipal customers. Non interest-bearing deposits comprised 27.7% and 27.5% of total deposits as of March 31, 2026 and December 31, 2025, respectively. Advances and other debt decreased primarily due to an increase in total deposits. Advances and other debt as of March 31, 2026 consisted of multiple FHLBNY term advances totaling $60.0 million, each carrying a two-month term, $15.7 million in FHLBNY overnight advances, and $3.4 million in finance lease liabilities. Total shareholders’ equity was $262.9 million as of March 31, 2026, compared to $254.7 million as of December 31, 2025, an increase of $8.2 million, or 3.2%, driven by an increase of $7.6 million in retained earnings, as well as a decrease of $0.3 million in accumulated other comprehensive loss. The increase in retained earnings was mainly due to net income for the three months ended March 31, 2026, totaling $9.2 million, partially offset by dividends declared of $1.6 million during the three months ended March 31, 2026. The decrease in accumulated other comprehensive loss was largely due to an increase in the fair value of securities available for sale, compared to prior year-end. The total equity to total assets ratio was 9.57% as of March 31, 2026, compared to 9.40% as of December 31, 2025, and the tangible equity to tangible assets ratio was 8.84% as of March 31, 2026, compared to 8.66% as of December 31, 2025.1 Book value per share and tangible book value per share increased to $54.36 and $49.85, respectively, as of March 31, 2026, from $52.97 and $48.43, respectively, as of December 31, 2025.1 As of March 31, 2026, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action. 1 See the GAAP to Non-GAAP reconciliations Liquidity The Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits of $250,000 or greater, brokered deposits, FHLBNY overnight and term advances, and FRB advances. Borrowings may be used on a short-term basis for liquidity purposes or on a long-term basis to fund asset growth. As of March 31, 2026, the Corporation's cash and cash equivalents balance was $53.4 million. Following the sales of a significant portion of available for sale securities in the prior year, the Corporation continues to maintain an investment portfolio of securities available for sale, consisting of government-sponsored entity mortgage-backed securities and collateralized mortgage obligations, municipal bonds, and corporate bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if needed. As of March 31, 2026, the Corporation's investment in securities available for sale was $275.3 million, $66.3 million of which was not pledged as collateral. Additionally, as of March 31, 2026, the Bank's total advance line capacity at the Federal Home Loan Bank of New York was $182.7 million, $75.7 million of which was utilized and $107.0 million of which was available. As of March 31, 2026, uninsured deposits totaled $704.6 million, or 30.5% of total deposits, including $187.5 million of municipal deposits collateralized by pledged assets, when required. As of December 31, 2025, uninsured deposits totaled $682.5 million, or 30.1% of total deposits, including $161.4 million of municipal deposits collateralized by pledged assets, when required. Due to their fluidity, the Corporation closely monitors uninsured deposit levels when considering liquidity management strategies. The Corporation had no outstanding brokered deposits as of March 31, 2026 or December 31, 2025. The Corporation may use brokered deposits in the future in funding asset growth or as an additional source of liquidity in supporting ongoing operations. Other Items The market value of total assets under management or administration in our Wealth Management Group was $2.338 billion as of March 31, 2026, including $329.7 million of assets under management or administration for the Corporation, in line with the market value of assets as of December 31, 2025 of $2.338 billion, which included $301.8 million of assets under management or administration for the Corporation. Excluding assets under management or administration for the Corporation, the total market value of Wealth Management Group assets decreased $27.9 million, or 1.6%, largely due to declines in financial markets during the first quarter of 2026, in part in response to recent geopolitical events. As previously announced on January 8, 2021, the Corporation's Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. As of March 31, 2026, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the first quarter of 2026. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares as of March 31, 2026. On April 3, 2026, Chemung Canal Trust Company filed an application with the Office of the Comptroller of the Currency (the "OCC") to convert its state charter in the State of New York to a national bank charter. The conversion is subject to the approval of the OCC. About Chemung Financial Corporation Chemung Financial Corporation is a $2.7 billion financial services holding company headquartered in Elmira, New York and operates 30 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance. This press release may be found at: www.chemungcanal.com under Investor Relations. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation's expected financial position and operating results, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." The Corporation cannot guarantee that its expectations in such forward-looking statements will turn out to be correct. The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, difficulties in managing the Corporation’s growth, competition, geopolitical conflicts, changes in law or the regulatory environment, and changes in general business and economic trends. Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2025 Annual Report on Form 10-K. These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise. For further information contact: Dale M. McKim, III, EVP and CFO [email protected] Phone: 607-737-3714 (1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities. (2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets. (1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities. (2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets. Chemung Financial Corporation GAAP to Non-GAAP Reconciliations (Unaudited) The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements. In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non- GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non- GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non- GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them. Fully Taxable Equivalent Net Interest Income and Net Interest Margin Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax- exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices. Efficiency Ratio The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non- interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent. Tangible Equity and Tangible Assets (Period-End) Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. Tangible Equity (Average) Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. Adjustments for Certain Items of Income or Expense In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G. Category: Financial Source: Chemung Financial Corp

Chemung Financial (CHMG) came out with quarterly earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +17.18%. A quarter ago, it was expected that this financial holding company would post earnings of $1.6 per share when it actually produced earnings of $1.61, delivering a surprise of +0.63%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Chemung Financial, which belongs to the Zacks Banks - Southeast industry, posted revenues of $29.9 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.31%. This compares to year-ago revenues of $25.71 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Chemung Financial shares have added about 6.3% since the beginning of the year versus the S&P 500's gain of 2.9%. While Chemung Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Chemung Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.70 on $31.1 million in revenues for the coming quarter and $6.75 on $125.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Investar (ISTR), has yet to report results for the quarter ended March 2026. This holding company for Investar Bank is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of +7.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Investar's revenues are expected to be $36.6 million, up 79.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chemung Financial Corp (CHMG) : Free Stock Analysis Report Investar Holding Corporation (ISTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investar (ISTR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This holding company for Investar Bank is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of +7.8%. Revenues are expected to be $36.6 million, up 79.8% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Investar, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.35%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Investar will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Investar would post earnings of $0.54 per share when it actually produced earnings of $0.58, delivering a surprise of +7.41%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Investar doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Southeast industry, Chemung Financial (CHMG), is soon expected to post earnings of $1.63 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +29.4%. Revenues for the quarter are expected to be $30.3 million, up 17.9% from the year-ago quarter. The consensus EPS estimate for Chemung Financial has been revised 5.6% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Chemung Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Investar Holding Corporation (ISTR) : Free Stock Analysis Report Chemung Financial Corp (CHMG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Chemung Financial (CHMG) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This financial holding company is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +29.4%. Revenues are expected to be $30.3 million, up 17.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 5.59% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chemung Financial, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Chemung Financial will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chemung Financial would post earnings of $1.6 per share when it actually produced earnings of $1.61, delivering a surprise of +0.63%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chemung Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Southeast industry, Simmons First National (SFNC), is soon expected to post earnings of $0.47 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +80.8%. This quarter's revenue is expected to be $241.86 million, up 15.4% from the year-ago quarter. The consensus EPS estimate for Simmons First National has been revised 0.7% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.59%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Simmons First National will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chemung Financial Corp (CHMG) : Free Stock Analysis Report Simmons First National Corporation (SFNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ELMIRA, N.Y., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $7.7 million, or $1.61 per share, for the fourth quarter of 2025, compared to net income of $7.8 million, or $1.62 per share, for the third quarter of 2025, and net income of $5.9 million, or $1.24 per share, for the fourth quarter of 2024. 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. Net income for the year ended December 31, 2024 was $23.7 million, or $4.96 per share. “Fourth quarter results highlight the sustained benefits of the Corporation’s strategic repositioning efforts throughout the year,” said Anders M. Tomson, President and CEO of Chemung Financial Corporation. “Meaningful expansion in net interest margin of 16 basis points compared to the prior quarter, combined with strong commercial loan growth across key markets, reflects our continued ability to support high-quality client demand while maintaining disciplined funding cost management,” Tomson added. “As we close out 2025, I want to thank our customers for their continued trust and partnership, and our colleagues across Chemung Financial Corporation for their dedication to making a meaningful difference for the individuals, businesses, and communities we serve,” added Tomson. “We enter 2026 with a clear and disciplined focus on strengthening our capabilities, enhancing how we serve our customers, and improving our processes to build greater scale, resiliency, and sustainable growth," ended Tomson. Fourth Quarter and Full Year 2025 Highlights: Non-GAAP net income and earnings per share, excluding the impact of one time items in the second quarter of 2025, was $27.9 million and $5.80, respectively for the year ended December 31, 2025, compared to $23.7 million and $4.96, respectively for the prior year, increases of 17.8% and 17.0%.1 Net interest margin increased 16 basis points, to 3.61%, for the fourth quarter 2025, compared to 3.45% for the third quarter 2025. Net interest margin for the year ended December 31, 2025 increased 50 basis points to 3.26%, compared to 2.76% for the prior year.1 Annual loan growth in 2025 totaled $198.1 million, or 9.6%, including annual commercial loan growth of $217.4 million, or 14.3%. Total loans in the Corporation's Canal Bank division in Western New York grew 66% in 2025, to over $235 million. Dividends declared during the fourth quarter of 2025 were $0.34 per share. 1 See the GAAP to Non-GAAP reconciliations. 2025 vs 2024 Net Interest Income: Net interest income for the year ended December 31, 2025 totaled $87.2 million, compared to $74.1 million for the prior year, an increase of $13.1 million, or 17.7%, driven by a decrease of $8.3 million in interest expense on deposits and increases of $8.2 million in interest income on loans and $1.6 million in interest income on interest-earning deposits, partially offset by a decrease of $4.2 million in interest and dividend income on taxable securities. Interest expense on deposits decreased largely due to a decrease of 42 basis points in the average cost of total interest-bearing deposits, which included brokered deposits, and a decrease of $30.6 million in average balances of total interest-bearing deposits, each compared to the prior year. The decrease in average balances of total interest-bearing deposits was inclusive of a decrease of $38.0 million in average balances of brokered deposits, due to proceeds from the Corporation's sales of available for sale securities in the second quarter of 2025 being used to pay off wholesale funding liabilities, including brokered deposits. The average cost of customer time deposits decreased 73 basis points and average balances of customer time deposits decreased $25.2 million, each compared to the prior year. Both the decrease in average cost and average balances were primarily due to changes in the Corporation's promotional CD campaign offerings in the current year, compared to the prior year, which included a shift toward shorter-term options and a decrease in offered interest rates as a result of the lower market interest rate environment compared to the prior year. Additionally, proceeds from the Corporation's sales of available for sale securities in 2025 reduced reliance on customer time deposits to fund loan growth. Average balances of customer time deposits decreased to 21.0% of total average deposits in 2025 from 21.8% in 2024. Interest income on loans increased mainly due to an increase of $129.3 million in average balances of total loans and an increase of five basis points in the average yield on total loans, each compared to the prior year. The increase in average balances of total loans was largely driven by an increase of $159.3 million in average balances of commercial loans, partially offset by a decrease of $33.9 million in average balances of consumer loans, each compared to the prior year. The increase in average balances of commercial loans was largely concentrated in commercial real estate, particularly in the Corporation's Capital Bank division in Albany and Canal Bank division in Buffalo. The decrease in average balances of consumer loans was primarily due to lower origination activity and normal portfolio turnover of indirect auto loans, as the Corporation prioritized funding other types of lending during 2025. The increase in the average yield on total loans was mainly due to increases of 35 basis points and 15 basis points in the average yields on residential mortgages and consumer loans, respectively, partially offset by a decrease of six basis points in the average yield on total commercial loans, each compared to the prior year. The increase in the average yield on residential mortgages was primarily due to an increase in origination volumes during 2025, nearly all of which carried interest rates above the portfolio's overall average yield, due to the elevated interest rate environment. The increase in the average yield on consumer loans was largely due to fast turnover in the indirect auto portfolio as older, lower-yielding balances were replaced by higher-yielding balances, partially offset by lower yields on originations of promotional home equity lines of credit, and the impact of declines in benchmark interest rates, such as the Prime rate, on variable rate home equity loans and lines. The decrease in the average yield on commercial loans was largely due to a decrease in interest rates on variable rate commercial and industrial loans, including lines of credit, due to the declining market interest rate environment. Yields on originations of commercial real estate loans during 2025 were largely above the average yield on total commercial loans. Interest income on interest-earning deposits increased largely due to an increase of $38.4 million in average balances of interest-earning deposits compared to the prior year, mainly consisting of proceeds from the Corporation's sales of available for sale securities and issuance of subordinated debt in the second quarter of 2025, and despite a decrease of 40 basis points in the average yield on interest-earning deposits compared to the prior year, due to decreases in the Federal Funds Target Range Upper Limit during both 2025 and 2024. Interest and dividend income on taxable securities decreased primarily due to the Corporation's sales of available for sale securities with a book value of $244.8 million during the second quarter of 2025. These sales, as well as normal paydown activity on mortgage-backed securities and SBA pooled-loan securities, resulted in a decrease of $169.7 million in average balances of taxable securities, compared to the prior year. Additionally, the average yield on taxable securities decreased 12 basis points compared to the prior year, largely due to the Corporation's optimization of securities sales proceeds, which reflects the sale of relatively higher-yielding securities in the second quarter of 2025, partially offset by a decrease in total amortization expense on available for sale securities compared to the prior year. Fully taxable equivalent net interest margin was 3.26% for the year ended December 31, 2025, compared to 2.76% for the prior year. Average interest-earning assets decreased $18.0 million and interest-bearing liabilities decreased $32.2 million, each compared to the prior year, largely the result of the Corporation's balance sheet repositioning efforts in 2025. The average yield on interest-earning assets increased 23 basis points to 4.97%, while the average cost of interest-bearing liabilities decreased 37 basis points to 2.50%, each compared to the prior year. The total cost of funds was 1.86% in 2025, compared to 2.15% in the prior year, a decrease of 29 basis points. Provision for Credit Losses: Provision for credit losses for the year ended December 31, 2025 was $4.4 million, compared to a credit of $46 thousand for the prior year, an increase of $4.5 million. The increase was largely due to the annual review and update to the loss drivers which the Bank's CECL model is based upon, resulting in an increase in baseline loss rates during the current year, as well as a provision credit in the first quarter of 2024 resulting from the prior year's annual review. Additionally, an increase in loan growth and unfavorable changes in model inputs during 2025, including a decline in modeled prepayment speeds and a higher modeled unemployment rate, contributed to the increase. The increase in net charge-offs for the year ended December 31, 2025 compared to the prior year did not meaningfully contribute to the increase in provision. Non-Interest Income: Non-interest income for the year ended December 31, 2025 was $7.9 million, compared to $23.2 million for the prior year, a decrease of $15.3 million, or 65.9%, which included a $17.5 million loss on sales of available for sale securities in the second quarter of 2025. Excluding the losses on securities sales, the change in non-interest income compared to the prior year was largely driven by increases of $1.5 million in other non-interest income and $0.4 million in each of wealth management group fee income and service charges on deposit accounts. The increase in other non-interest income was largely due to a gain of $0.6 million on the sale of the previous Ithaca "Station" branch property, interest received from the IRS in relation to the Corporation's receipt of proceeds from the Employee Retention Tax Credit (ERTC), an increase in commercial interest rate swap fee income, and recognition of incentives from a debit card service provider arrangement. The increase in both wealth management group fee income and service charges on deposit accounts was primarily due to fee schedule increases which were implemented in the second half of 2024. Non-Interest Expense: Non-interest expense for the year ended December 31, 2025 was $70.7 million, compared to $67.3 million for the prior year, an increase of $3.4 million, or 5.1%, driven by increases of $2.1 million in salaries and wages and $0.8 million in pension and other employee benefits, partially offset by a decrease of $0.6 million in FDIC insurance. Salaries and wages increased primarily due to additional staffing in the Corporation's Canal Bank division in Western New York, including commercial lenders, wealth management professionals, and branch personnel, as well as merit-based wage increases. The increase in pension and other employee benefits was largely due to an increase in employee healthcare-related expenses, compared to the prior year, as well as an increase in payroll tax expenses, compared to the prior year. The decrease in FDIC insurance was mainly due to improved metrics used to calculate the current year assessment, as well as a smaller decrease associated with a decline in total assessed assets. Income Tax Expense: Income tax expense for the year ended December 31, 2025 was $4.8 million, compared to $6.4 million for the prior year, a decrease of $1.6 million. The effective tax rate for the year ended December 31, 2025 increased to 24.2%, compared to 21.3% for the prior year. The decrease in income tax expense was primarily due to a decrease in pretax income, while the increase in the effective tax rate was largely due to the establishment of a $0.8 million valuation allowance associated with deferred tax assets related to the sales of available for sale securities as part of the balance sheet repositioning. 4th Quarter 2025 vs 3rd Quarter 2025 Net Interest Income: Net interest income for the fourth quarter of 2025 totaled $23.8 million, compared to $22.7 million for the prior quarter, an increase of $1.1 million, or 4.8%, driven by an increase of $0.8 million in interest income on loans and a decrease of $0.8 million in interest expense on deposits, partially offset by a decrease of $0.5 million in interest income on interest-earning deposits. Interest income on loans increased largely due to an increase of $51.5 million in average balances of total loans, as well as a smaller increase attributable to an increase of one basis point in the average yield on total loans, each compared to the prior quarter. The increase in average balances of total loans was concentrated in commercial loans, which increased $50.5 million compared to the prior quarter, while average balances of residential mortgages increased $7.3 million compared to the prior quarter. Average balances of consumer loans decreased $6.3 million compared to the prior quarter. The increase in average balances of commercial loans was concentrated in commercial real estate, and the Corporation continues to experience strong demand across a range of project types and geographies. Commercial and industrial loan average balances also increased, with a majority of the increase being attributable to the Canal Bank division. Average balances of residential mortgages increased as a result of strong origination activity, which was weighted more heavily in jumbo mortgages held for investment in the current quarter. The decrease in average balances of consumer loans was largely due to a decrease in average balances of indirect auto loans, as the Corporation continued prioritizing other types of lending activity, partially offset by an increase in average balances of home equity lines and loans, which primarily increased due to usage of home equity lines originated as part of the Corporation's HELOC campaign during 2025. The increase in the average yield on total loans consisted of increases of seven basis points and one basis point, respectively, in the average yields on consumer and commercial loans, partially offset by a decrease of five basis points in the average yield on residential mortgages. The increase in the average yield on consumer loans was largely due to turnover in the indirect auto portfolio as older, lower-yielding balances were replaced by higher-yielding new originations. The increase in the average yield on commercial loans was largely due to strong commercial real estate origination volumes, which were generally funded at yields above the portfolio's overall average yield, as well as the recognition of prepayment penalties and deferred fees associated with multiple larger payoffs during the fourth quarter, partially offset by decreases in interest rates on variable rate commercial loans, due to a general decline in benchmark indices. The decrease in the average yield on residential mortgages was primarily due to recognition of interest income on the payoff of a nonaccrual loan in the prior quarter and the recognition of deferred fees on the payoff of several larger accruing loans in the prior quarter. Interest expense on deposits decreased mainly due to a decrease of 18 basis points in the average cost of interest-bearing deposits and a decrease of $4.9 million in average balances of interest-bearing deposits. The decrease in the average cost of interest-bearing deposits was largely due to decreases of 12 and 19 basis points, respectively, in the average cost of savings and money market deposits, and customer time deposits, respectively. The average cost of savings and money market deposits decreased largely due to seasonal outflows of municipal deposits, which are typically higher-costing, and a decrease in overall market interest rates compared to the prior quarter. The decrease in the average cost of customer time deposits was primarily due to the renewal of previous campaign offerings at lower rates and the maturity of previous higher-cost campaign offerings which were not renewed. Average balances of interest-bearing deposits decreased largely due to decreases of $42.5 million and $7.2 million in average balances of customer time deposits and brokered deposits, respectively, partially offset by increases of $22.6 million and $22.2 million in average balances of interest-bearing demand deposits and savings and money market deposits, respectively. Interest income on interest-earning deposits decreased largely due to a decrease of $35.2 million in average balances of interest-earning deposits and a decrease of 36 basis points in the average yield on interest-earning deposits. The decrease in average balances was largely due to the utilization of remaining proceeds from the Corporation's sales of available for sale securities and issuance of subordinated debt to fund commercial loan growth in the current quarter, as well as a decrease in total deposits due to seasonal flows of municipal deposits. The decrease in the average yield earned on interest-earning deposits was largely due to decreases in the Federal Funds Target Range Upper Limit during both the third and fourth quarters of 2025. Fully taxable equivalent net interest margin was 3.61% for the current quarter, compared to 3.45% for the prior quarter. Average interest-earning assets increased $7.5 million and average interest-bearing liabilities decreased $7.7 million during the fourth quarter, compared to the prior quarter. The average yield on interest-earning assets increased three basis points to 5.18%, while the average cost of interest-bearing liabilities decreased 17 basis points to 2.34%, compared to the prior quarter. Total cost of funds was 1.72% for the current quarter, compared to 1.85% for the prior quarter, a decrease of 13 basis points. Provision for Credit Losses: Provision for credit losses was $1.1 million for the fourth quarter of 2025, in line with the prior quarter. The provision was largely due to growth in commercial loan balances, specific allocations of $0.4 million made on loans individually analyzed, including $0.3 million in allocations on a single commercial real estate relationship, and increased net charge-offs, compared to the prior quarter, partially offset by improvements in Federal Open Market Committee (FOMC) forecasts for U.S. GDP growth. Non-Interest Income: Non-interest income for the fourth quarter of 2025 totaled $6.7 million, compared to $6.1 million for the prior quarter, an increase of $0.6 million, or 9.8%, driven by increases of $0.5 million in other non-interest income and $0.2 million in wealth management group fee income. The increase in other non-interest income was largely due to receipt of interest from the IRS in relation to the Corporation's ERTC, recognition of incentives from a debit card service provider arrangement, and an increase in interest rate swap fee income compared to the prior quarter. The increase in wealth management group fee income was primarily due to an increase in fees associated with terminating trusts. Non-Interest Expense: Non-interest expense for the fourth quarter of 2025 totaled $18.4 million, compared to $17.6 million for the prior quarter, an increase of $0.8 million, or 4.5%, driven by increases of $0.4 million in other non-interest expense and $0.3 million in pension and other employee benefits. The increase in other non-interest expense was mainly due to increases in charitable donations and non-loan charge-offs compared to the prior quarter. The increase in charitable donations was primarily due to the acceleration of the Corporation's charitable donations, while the increase in non-loan charge-offs was largely due to higher recoveries of prior charge-offs in the prior quarter, as well as higher deposit account charge-off activity in the current quarter. The increase in pension and other employee benefits was primarily due to increases in employee healthcare-related expenses and payroll tax expense, each compared to the prior quarter. Income Tax Expense: Income tax expense for the fourth quarter of 2025 was $3.3 million, compared to $2.3 million for the prior quarter, an increase of $1.0 million. The increase in income tax expense was primarily due to the establishment of a $0.8 million valuation allowance associated with deferred tax assets related to the sales of available for sale securities as part of the balance sheet repositioning. The effective tax rate for the current quarter increased to 29.6%, compared to 22.6% for the prior quarter. 4th Quarter 2025 vs 4th Quarter 2024 Net Interest Income: Net interest income for the fourth quarter of 2025 totaled $23.8 million, compared to $19.8 million for the same period in the prior year, an increase of $4.0 million, or 20.2%, driven by an increase of $3.0 million in interest income on loans and a decrease of $2.8 million in interest expense on deposits, partially offset by a decrease of $1.5 million in interest and dividend income on taxable securities and an increase of $0.4 million in interest expense on borrowed funds. Interest income on loans increased mainly due to an increase of $176.9 million in average balances of total loans and an increase of eight basis points in the average yield on total loans, compared to the same period in the prior year. The increase in average balances of total loans was concentrated in commercial real estate, as well as smaller increases in commercial and industrial loans and residential mortgages, partially offset by a decrease in average balances of consumer loans. Average balances of total commercial loans increased $201.2 million compared to the same period in the prior year, largely concentrated in the Capital Bank and Canal Bank divisions in the Albany and Buffalo markets. Average balances of residential mortgages increased $10.2 million compared to the same period in the prior year, mainly due to increased origination activity compared to the same period in the prior year. The decrease in average balances of consumer loans was primarily due to a decrease in average balances of indirect auto loans as a result of the Corporation continuing to prioritize other types of lending during 2025. The increase in the average yield on total loans compared to the same period in the prior year was mainly due to an increase of 34 basis points in the average yield on residential mortgages, and to a lesser degree one and four basis point increases in the average yields on commercial and consumer loans, respectively. The increase in the average yield on residential mortgages was largely due to yields on mortgages originated during 2025 generally being higher than the overall portfolio average yield. The increase in the average yield on commercial loans was largely due to strong origination volumes during 2025, partially offset by a decrease in interest rates on variable rate commercial loans as a result of decreases in benchmark indices between the fourth quarters of 2024 and 2025. The increase in the average yield on consumer loans was largely due to net runoff of older lower-yielding indirect auto loans, which were replaced by higher-yielding loans, partially offset by advances on promotional HELOCs during 2025, and a decrease in the Prime rate compared to the same period in the prior year. Interest expense on deposits decreased primarily due to a decrease of 49 basis points in the average cost of total interest-bearing deposits and a decrease of $106.8 million in average balances of total interest-bearing deposits, which included brokered deposits. The decrease in the average cost of total interest-bearing deposits was largely due to a decrease of 86 basis points in the average cost of customer time deposits compared to the same period in the prior year, as well as the current year period including no higher-costing brokered deposits. The decrease in the average cost of customer time deposits was largely the result of the Corporation offering shorter-term campaign specials during 2025 compared to the specials offered during 2023 and 2024. There was a reduced dependence on customer and brokered time deposits to fund loan growth as a result of an increase in cash balances representing net proceeds from the Corporation's sales of available for sale securities and issuance of subordinated debt earlier in 2025. These were also the largest contributing factors to the decrease in average balances of total interest-bearing deposits, with average balances of customer time deposits and brokered deposits decreasing $75.8 million and $74.9 million, respectively compared to the same period in the prior year. Customer time deposits comprised 19.9% of total average deposits during the fourth quarter of 2025, compared to 22.1% during the same period in the prior year. Interest and dividend income on taxable securities decreased largely due to a decrease of $268.5 million in average balances of taxable securities, primarily due to sales of available for sale securities with a book value of $244.8 million during the second quarter of 2025, as well as normal year-over-year paydowns and maturities, which totaled $47.6 million between the fourth quarters of 2024 and 2025. Additionally, the average yield on taxable securities decreased eight basis points, largely the result of optimization of sales proceeds from available for sale securities sales. Interest expense on borrowed funds increased largely due to an increase of $44.0 million in average balances of subordinated debt, as well as an increase of 268 basis points in the average cost of total borrowed funds, partially offset by a decrease of $36.2 million in average balances of FHLBNY overnight advances. The composition of borrowed funds during the fourth quarter of 2025 largely consisted of subordinated debt, while the composition of borrowed funds during the fourth quarter of 2024 largely consisted of FHLBNY overnight advances. The increase in the average cost of borrowed funds was primarily due to the issuance of $45.0 million in 7.75% fixed-to-floating rate notes in June 2025, partially offset by a decrease of 93 basis points in the average cost of FHLBNY overnight advances compared to the same period in the prior year. Fully taxable equivalent net interest margin was 3.61% for the fourth quarter of 2025, compared to 2.92% for the same period in the prior year. Average interest-earning assets decreased $86.8 million, while average interest-bearing liabilities decreased $102.6 million, compared to the same period in the prior year, both primarily due to the net impact of the Corporation's balance sheet repositioning efforts in 2025. The average yield on interest-earning assets increased 39 basis points to 5.18%, while the average cost of interest-bearing liabilities decreased 39 basis points to 2.34%, compared to the same period in the prior year. Total cost of funds was 1.72% for the current quarter, compared to 2.04% for the same period in the prior year, a decrease of 32 basis points. Provision for Credit Losses: Provision for credit losses was $1.1 million for the fourth quarter of 2025, compared to $0.6 million for the same period in the prior year, an increase of $0.5 million. The increase was largely due to an increase in specific allocations made on individually analyzed loans in the current year period, compared to the same period in the prior year, as well as stronger loan growth in the fourth quarter of 2025. Net charge-offs were comparable between the two periods. Non-Interest Income: Non-interest income for the fourth quarter of 2025 was $6.7 million, compared to $6.1 million for the same period in the prior year, an increase of $0.6 million, or 9.8%, driven by an increase of $0.4 million in other non-interest income. The increase in other non-interest income was largely due to receipt of interest from the IRS in relation to the Corporation's ERTC and recognition of incentives from a debit card service provider arrangement. Non-Interest Expense: Non-interest expense for the fourth quarter of 2025 was $18.4 million, compared to $17.8 million for the same period in the prior year, an increase of $0.6 million, or 3.4%, driven by increases of $0.4 million in salaries and wages, $0.3 million in pension and other employee benefits, and $0.3 million in other non-interest expense, partially offset by decreases of $0.2 million in data processing and $0.2 million in FDIC insurance. Salaries and wages increased mainly due to merit-based salary increases for existing employees, an increase in incentives compared to the same period in the prior year, and additional staffing in the Corporation's Western New York Canal Bank division, consisting of additional lending, branch, and wealth management personnel. Pension and employee benefits increased largely due to an increase in employee healthcare-related expenses compared to the same period in the prior year. Other non-interest expense increased largely due to the acceleration of charitable donations in the current year period, and an increase in operational losses on the sale of repossessed vehicles compared to the same period in the prior year. The decrease in data processing was primarily due to a decrease in debit card related expenses and a decrease in core service provider expenses, each compared to the same period in the prior year. FDIC insurance decreased largely due to favorable changes in metrics used to determine assessment rates, as well as a smaller decrease associated with a decrease in total assessed assets. Income Tax Expense: Income tax expense for the fourth quarter of 2025 was $3.3 million, compared to $1.6 million for the same period in the prior year, an increase of $1.7 million. The increase in income tax expense was primarily due to the establishment of a $0.8 million valuation allowance in the current quarter associated with deferred tax assets related to the sales of available for sale securities as part of the balance sheet repositioning, and an increase in pretax income compared to the same period in the prior year. The effective tax rate for the current quarter increased to 29.6%, compared to 21.2% for the same period in the prior year. Asset Quality Non-performing loans totaled $7.9 million, or 0.35% of total loans, as of December 31, 2025, compared to $9.0 million, or 0.43% of total loans as of December 31, 2024, a decrease of $1.1 million. The decrease was driven by $2.5 million in paydowns and payoffs on non-performing commercial loans, and $0.8 million in commercial and industrial loan charge-offs, most of which occurred in the second quarter of 2025. These reductions were partially offset by $0.4 million in additions to non-performing commercial loans and a $1.4 million increase in total retail non-performing loans as of December 31, 2025 compared to December 31, 2024. The increase in non-performing retail loans was relatively evenly distributed amongst residential mortgages, home equity loans and lines, and indirect auto loans. Non-performing assets, which are comprised of non-performing loans, other real estate owned, and repossessed vehicles, totaled $8.2 million, or 0.30% of total assets as of December 31, 2025, compared to $9.6 million, or 0.35% of total assets as of December 31, 2024. There was no other real estate owned as of December 31, 2025, compared to $0.4 million as of December 31, 2024, while repossessed vehicles were $0.3 million as of December 31, 2025 and $0.2 million as of December 31, 2024, an increase of $0.1 million. Total loan delinquencies declined during 2025, compared to December 31, 2024. Total loan delinquencies, inclusive of delinquent nonaccrual loans, were $11.0 million as of December 31, 2025, compared to $11.9 million as of December 31, 2024. The decrease in total delinquencies was largely due to a decrease of $1.9 million in delinquent commercial loan balances, which was largely due to payoffs of nonaccrual commercial real estate loans and charge-offs of nonaccrual commercial and industrial loans during 2025. Partially offsetting the decrease was an increase of $1.0 million in delinquent retail loan balances, which was mainly due to increases in delinquent home equity and indirect auto loans. Total net charge-offs for the year ended December 31, 2025 were 0.09% of average total loans, compared to 0.06% for the year ended December 31, 2024, an increase of three basis points. The increase in charge-offs to total average loans was largely due to a $0.7 million commercial and industrial loan charge-off in the second quarter of 2025. Total commercial loan charge-offs were 0.05% of average commercial loan balances during 2025 and total consumer loan charge-offs were 0.40% of average consumer loan balances during 2025. On an annualized basis, total net charge-offs for the fourth quarter of 2025 were 0.09% of average total loans, compared to 0.12% for the same period in the prior year, a decrease of three basis points, largely due to $0.3 million in commercial and industrial loan charge-offs during the fourth quarter of 2024. Total annualized commercial loan charge-offs were 0.02% of average loan balances in the fourth quarter of 2025, while annualized consumer loan charge-offs were 0.72% of average loan balances. The allowance for credit losses on loans was $24.2 million as of December 31, 2025, compared to $21.4 million as of December 31, 2024. The allowance for credit losses on unfunded commitments, a component of other liabilities, was $0.6 million as of December 31, 2025 and $0.8 million as of December 31, 2024. The increase in the allowance for credit losses on loans was primarily attributable to the annual review and update to loss drivers used in the Bank's CECL model, which resulted in higher baseline loss rates for most of the Bank's portfolio segments, as well as year-to-date loan growth, concentrated in commercial real estate. Also contributing to the increase in the allowance were declines in modeled prepayment speeds, among other adjustments to model inputs during the year. Partially offsetting an overall increase in the allowance was a $0.4 million decrease in allowance allocations on individually analyzed loans, largely due to commercial net charge-offs in the second quarter of 2025, partially offset by current year specific allocations. The ratio of allowance for credit losses on loans to total loans was 1.07% as of December 31, 2025 and 1.03% as of December 31, 2024, while the allowance for credit losses on loans was 306.13% of non-performing loans as of December 31, 2025 and 238.87% as of December 31, 2024. Provision for credit losses as a percentage of average loan balances was 0.20% for the fourth quarter of 2025 and 0.21% for the year-ended December 31, 2025. Balance Sheet Activity Total assets were $2.710 billion as of December 31, 2025, compared to $2.776 billion as of December 31, 2024, a decrease of $65.9 million, or 2.4%. This decrease was driven by the Corporation's balance sheet repositioning efforts during 2025, which included the sale of a portion of the available for sale securities portfolio, issuance of subordinated debt, and the payoff of a majority of the Corporation's wholesale funding liabilities. Securities available for sale decreased $250.8 million, while other assets and interest rate swap assets decreased $7.3 million and $6.5 million, respectively. Partially offsetting this overall decrease was an increase of $198.1 million in loans, net of deferred origination costs. Securities available for sale decreased primarily due to the Corporation's completed balance sheet repositioning, which largely occurred during the second and third quarters of 2025, including the sale of available for sale securities with a market value of $227.3 million at the time of sale. Also contributing to the decrease were year-to-date net paydowns and maturities on available for sale securities totaling $43.1 million, largely on mortgage-backed securities and SBA pooled-loan securities. Partially offsetting the overall decrease in the available for sale securities portfolio was an increase of $21.0 million in the fair value of securities, mainly due to favorable changes in interest rates compared to December 31, 2024. The decrease in interest rate swap assets was largely due to changes in market interest rates compared to December 31, 2024, while the decrease in other assets was mainly due to a decrease in deferred tax assets as a result of an increase in the fair value of available for sale securities and the receipt of the Corporation's ERTC proceeds during the current year. Loans, net of deferred origination fees and costs increased mainly due to growth in commercial loan balances. Total commercial loan balances increased $217.4 million, or 14.3%, compared to prior year-end, comprised of increases of $192.7 million in commercial real estate balances and of $24.7 million in commercial and industrial balances. The Corporation's Capital Bank division in its Albany market contributed $99.8 million of the commercial loan growth, or 45% of total growth, the Canal Bank division in the Buffalo market contributed $86.1 million, or 40% of commercial growth, while the Chemung Canal division in the Southern Tier market contributed $31.5 million, or 15% of commercial growth. The increase in the Canal Bank division represents the largest annual increase in loan balances since the Corporation entered the Buffalo market, while the commercial loan growth in the Chemung Canal division was the largest annual growth since 2020, which had been driven by the Paycheck Protection Program (PPP). Residential mortgages increased $11.9 million, or 4.3%, compared to prior year-end, with overall annual origination activity increasing in 2025 compared to the prior year. Consumer loans decreased $31.2 million, or 11.1%, compared to prior year-end, largely due to lower levels of indirect auto loan origination activity, and a relatively fast turnover rate in the portfolio. The overall decrease in consumer loan balances was partially offset by an increase of $16.5 million in balances of home equity loans and lines, largely due to the Corporation's promotional efforts during 2025. Total liabilities were $2.456 billion as of December 31, 2025, compared to $2.561 billion as of December 31, 2024, a decrease of $105.3 million, or 4.1%. Similar to the decrease in total assets, this decrease was driven by the Corporation's balance sheet repositioning efforts during 2025. Total deposits decreased $126.2 million and advances and other debt decreased $22.3 million, while subordinated debt, net of deferred issuance costs, increased $44.0 million, each compared to prior year-end. Total deposits decreased $126.2 million, or 5.3%, compared to the prior year-end, largely due to a decrease in brokered deposits of $92.2 million, as well as a decrease of $34.0 million in total customer deposits, each compared to prior year-end. The decrease in brokered deposits represents the payoff of all outstanding brokered deposits at maturity in the third quarter of 2025 using proceeds from the Corporation's sales of available for sale securities and issuance of subordinated debt. The decrease in total customer deposits was largely due to a decrease of $68.1 million in customer time deposits, partially offset by increases of $20.1 million in interest-bearing demand deposits, $8.9 million in savings deposits, and $6.3 million in money market deposits. The decrease in customer time deposits was largely due to maturities of previous CD campaign offerings which were not renewed. The increase in interest-bearing demand deposits was largely due to net inflows from municipal and commercial clients compared to prior year-end, while the increase in savings deposits was largely due to net inflows from municipal clients, also compared to prior year-end. The increase in money market deposits was primarily due to inflows from commercial clients, compared to prior year-end. Non interest-bearing deposits comprised 27.5% and 26.1% of total deposits as of December 31, 2025 and December 31, 2024, respectively, and the increase in this ratio was largely the result of a decrease in brokered deposits compared to prior year-end. Advances and other debt decreased primarily due to decreased usage of FHLBNY advances as of December 31, 2025 compared to prior year-end, largely due to using proceeds from the Corporation's balance sheet repositioning to fund loan growth during the second half of 2025. Utilization of FHLBNY overnight advances increased during the fourth quarter of 2025, primarily due to seasonal outflows of municipal deposits. Subordinated debt, net of deferred issuance costs, increased due to the issuance of $45.0 million in 7.75% fixed-to-floating rate notes in June 2025 in a private offering. There were $1.0 million in deferred issuance costs associated with the offering. The subordinated debt qualifies as tier 2 capital at the holding company and tier 1 capital at the Bank. Of the $45.0 million in subordinated debt issued, $37.0 million was downstreamed to the Bank, qualifying as tier 1 capital. The notes carry an original term of ten years and are redeemable by the Corporation beginning in June 2030, and beginning in June 2030 will float based on the then current Three-Month Term SOFR, plus 415 basis points. Further details regarding the offering can be found in the Corporation's Form 8-K filed with the Securities and Exchange Commission on June 10, 2025. Total shareholders’ equity was $254.7 million as of December 31, 2025, compared to $215.3 million as of December 31, 2024, an increase of $39.4 million, or 18.3%, driven by a decrease of $29.0 million in accumulated other comprehensive loss and an increase of $8.8 million in retained earnings. The decrease in accumulated other comprehensive loss was largely due to an increase in the fair value of securities available for sale, primarily due to favorable changes in market interest rates, as well as the reclassification of a portion of losses attributable to the available for sale securities portfolio into current period earnings, as a result of the Corporation's sales of available for sale securities in the second quarter of 2025. The increase in retained earnings was mainly due to net income for the year ended December 31, 2025, totaling $15.1 million, which is inclusive of a $13.2 million loss on the sale of available for sale securities in the second quarter of 2025, net of tax impacts, partially offset by dividends declared of $6.3 million during the year ended December 31, 2025. The total equity to total assets ratio was 9.40% as of December 31, 2025, compared to 7.76% as of December 31, 2024, and the tangible equity to tangible assets ratio was 8.66% as of December 31, 2025, compared to 7.02% as of December 31, 2024.1 Book value per share and tangible book value per share increased to $52.97 and $48.43, respectively, as of December 31, 2025, from $45.13 and $40.55, respectively, as of December 31, 2024.1 The Corporation's sales of securities available for sale did not impact book value per share or tangible book value per share. As of December 31, 2025, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action. 1 See the GAAP to Non-GAAP reconciliations Liquidity The Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits of $250,000 or greater, brokered deposits, FHLBNY overnight and term advances, and FRB advances. Borrowings may be used on a short-term basis for liquidity purposes or on a long-term basis to fund asset growth. As of December 31, 2025, the Corporation's cash and cash equivalents balance was $50.1 million, largely reflecting a normal level of operating liquidity following the deployment of most proceeds from the sales of available for sale securities and subordinated debt issuance in the second quarter of 2025. The Corporation continues to maintain an investment portfolio of securities available for sale, consisting of government-sponsored entity mortgage-backed securities and collateralized mortgage obligations, municipal bonds, and corporate bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if needed. As of December 31, 2025, the Corporation's investment in securities available for sale was $280.6 million, $102.4 million of which was not pledged as collateral. Additionally, as of December 31, 2025, the Bank's total advance line capacity at the Federal Home Loan Bank of New York was $178.5 million, $87.1 million of which was utilized and $91.4 million of which was available as of December 31, 2025. As of December 31, 2025, uninsured deposits totaled $682.5 million, or 30.1% of total deposits, including $161.4 million of municipal deposits collateralized by pledged assets, when required. As of December 31, 2024, uninsured deposits totaled $652.3 million, or 27.2% of total deposits, including $145.6 million of municipal deposits collateralized by pledged assets, when required. The increase in the ratio of uninsured deposits to total deposits was largely due to a decrease in brokered deposits compared to prior-year end. Due to their fluidity, the Corporation closely monitors uninsured deposit levels when considering liquidity management strategies. The Corporation had no outstanding brokered deposits as of December 31, 2025, following the maturity of $100.0 million in early July 2025. As part of its strategic balance sheet repositioning, the Corporation did not replace the brokered deposits at maturity, reflecting its efforts to reduce reliance on higher cost wholesale funding sources. The Corporation may use brokered deposits in the future in funding asset growth or as an additional source of liquidity in supporting ongoing operations. Other Items The market value of total assets under management or administration in our Wealth Management Group was $2.338 billion as of December 31, 2025, including $301.8 million of assets under management or administration for the Corporation, compared to $2.212 billion as of December 31, 2024, including $301.9 million of assets under management or administration for the Corporation, an increase of $126.5 million, or 5.7%. Excluding assets under management or administration for the Corporation, the total market value of Wealth Management Group assets increased $126.6 million, or 6.6%, largely due to improvements in financial markets during 2025. As previously announced on January 8, 2021, the Corporation's Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. As of December 31, 2025, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the fourth quarter of 2025. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares as of December 31, 2025. About Chemung Financial Corporation Chemung Financial Corporation is a $2.7 billion financial services holding company headquartered in Elmira, New York and operates 30 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance. This press release may be found at: www.chemungcanal.com under Investor Relations. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation's expected financial position and operating results, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." The Corporation cannot guarantee that its expectations in such forward-looking statements will turn out to be correct. The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends. Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2024 Annual Report on Form 10-K. These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise. Chemung Financial Corporation GAAP to Non-GAAP Reconciliations (Unaudited) The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements. In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies. The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them. Fully Taxable Equivalent Net Interest Income and Net Interest Margin Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices. Efficiency Ratio The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent. Tangible Equity and Tangible Assets (Period-End) Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. Tangible Equity (Average) Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity. In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G. Category: Financial Source: Chemung Financial Corp For further information contact: Dale M. McKim, III, EVP and CFO [email protected] Phone: 607-737-3714