Chemung Financial (CMHG) investor relations material

Executive summary

• Achieved strong momentum in core businesses with stable deposit base and ample liquidity.

• Net income for Q2 2026 was $8.8 million ($1.82 per share), up from a net loss of $6.5 million ($1.35 per share) in Q2 2025, but down from $9.2 million ($1.91 per share) in Q1 2026.

• Strategic balance sheet restructuring and expansion into higher-growth markets supported earnings growth and higher net interest income.

• Wealth management business continues to provide dependable non-interest income, with assets under management rising 6.6% to $2.49 billion.

• Solid credit quality with consistently low non-performing assets and charge-offs.

Financial highlights

• Q2 2026 net income was $8.8M and EPS was $1.82; YTD net income reached $18.0M and EPS $3.73.

• Net interest income rose 18.8% year-over-year to $24.7 million; net interest margin increased 7 bps quarter over quarter and expanded 62 bps year-over-year to 3.67%.

• Annualized loan growth of 8.7% YTD, with commercial loan growth at 13.0% and commercial loans growing $111.8 million since year-end.

• Deposit growth of $93.3M (4.1%) since December 31, 2025, with non-interest-bearing deposits rising to 28.8% of total deposits.

• Wealth management group fee income grew 8.1% YTD to $6.3M; non-interest income was $6.5 million, up from negative $10.7 million in Q2 2025.

Outlook and guidance

• Focus on revenue growth through deposit initiatives and scaling wealth management, especially in Western NY.

• Management expects continued benefits from balance sheet repositioning, with a focus on disciplined execution and long-term growth.

• Charter conversion to a national bank is expected to be completed by year-end 2026.

• Continued optimization of branch distribution, vendor contracts, and headcount.

• Enhanced digital experience and relationship-focused customer strategy.