Chemung Financial (CMHG) investor relations material

Executive summary

• Fourth quarter 2025 net income was $7.7 million ($1.61 per share), up 30.9% year-over-year but slightly down from the prior quarter; annual net income was $15.1 million ($3.14 per share), impacted by a $17.5 million loss on securities sales as part of balance sheet repositioning.

• Excluding one-time items, non-GAAP annual net income was $27.9 million ($5.80 per share), up 17.8% from 2024.

• Strategic repositioning led to improved net interest margin, strong commercial loan growth, and disciplined funding cost management.

Financial highlights

• Net interest income for 2025 rose 17.7% to $87.2 million; net interest margin increased 50 basis points to 3.26% year-over-year.

• Fourth quarter net interest income was $23.8 million, up 20.2% year-over-year and 4.8% sequentially.

• Non-interest income for 2025 was $7.9 million, down 65.9% due to a $17.5 million loss on securities sales; excluding this, non-interest income increased in several categories.

• Non-interest expense for 2025 increased 5.1% to $70.7 million, mainly from higher salaries, benefits, and charitable donations.

• Provision for credit losses was $4.4 million for 2025, up from a $46,000 credit in 2024, reflecting updated loss drivers and loan growth.

• Annual loan growth was $198.1 million (9.6%), with commercial loans up $217.4 million (14.3%).

Outlook and guidance

• Entering 2026 with a focus on strengthening capabilities, enhancing customer service, and building scale and resiliency for sustainable growth.