CHMG · Chemung Financial Corporation

Chemung Financial Corporation delivered its highest quarterly earnings in history with Q1 2026 net income of $9.2 million ($1.91 per share), driven by strategic expansions and balance sheet repositioning. CEO Anders M. Tomson highlighted the entrance into Western New York and 2025 repositioning as key contributors, alongside sustained community focus. Net interest income held steady at $23.6 million versus Q4 2025 despite a slight 0.8% dip, supported by $69.1 million higher average loan balances offset by yield compression from Federal Funds rate cuts impacting variable-rate commercial and consumer loans. YoY, NII surged 19.2% on $214.5 million loan growth, concentrated in commercial real estate across Canal Bank and Capital Bank divisions, plus lower deposit costs down 43 basis points. Provision for credit losses fell to $0.6 million from $1.1 million, aided by a $0.7 million loan recovery and CECL model recalibration, though offset by $1.2 million specific commercial allocations. Non-interest income dipped 6.0% on lower gains and seasonal factors, while expenses declined 4.9% on reduced benefits, salaries, and charitable timing. The record adjusted efficiency ratio of 58.27% reflects operational leverage. NIM edged to 3.60% with balanced yield/cost shifts. Loan growth annualized at 7.5%, accelerating to nearly 15% in Western New York, marked by a new Buffalo office opening. Dividends of $0.34 per share underscore capital return commitment amid robust performance.