Chemung Financial (CMHG) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly net income of $9.2 million and EPS of $1.91 in Q1 2026, up 52.7% year-over-year, with strong momentum across business lines and stable credit quality.

• Return on average equity rose to 14.25% and return on average assets to 1.36% for Q1 2026.

• Growth was driven by higher net interest income, increased non-interest income, and lower provision for credit losses.

• Strategic balance sheet restructuring and expansion into higher-growth markets like Albany and Buffalo, including opening a Buffalo office, are supporting growth.

• Stable deposit base, ample liquidity, and high customer engagement across all geographies.

Financial highlights

• Net interest income increased 19% year-over-year to $23.6 million, driven by higher loan balances and improved yields.

• Net interest margin was 3.60%, up from 2.96% a year ago.

• Non-interest income rose 7.3% to $6.3 million, led by wealth management and brokerage fee growth.

• Non-interest expense increased 3.2% to $17.5 million, mainly due to higher compensation costs.

• Annualized loan growth of 7.5% in Q1 2026; total loans reached $2.312 billion.

Outlook and guidance

• Continued focus on loan growth in Albany and Buffalo, leveraging legacy market deposits and proceeds from balance sheet restructuring.

• Management expects continued loan growth, especially in commercial real estate, and stable asset quality.

• Pending charter conversion from New York trust company to a national bank.

• Capital ratios remain well above regulatory minimums, supporting future growth and dividend capacity.

• Well positioned for opportunistic acquisitions and scaling of wealth management, especially in Western New York.