Chemung Financial (CHMG) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.6 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.63%. A quarter ago, it was expected that this financial holding company would post earnings of $1.68 per share when it actually produced earnings of $1.62, delivering a surprise of -3.57%.Over the last four qua ...

EXHIBIT 99.1 Chemung Financial Corporation Reports Fourth Quarter 2025 Net Income of $7.7 million, or $1.61 per share & Annual Financial Results 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 ...

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 ...

Financial Performance - Chemung Financial Corporation reported a net income of $2.5 million for the quarter, representing a 15% increase compared to the previous year[12]. - Net income for the three months ended September 30, 2025, was $7,792, a 36.3% increase compared to $5,720 for the same period in 2024[16]. - Earnings per share (EPS) for the quarter were reported at $0.75, a 12% increase compared to the same quarter last year[5]. - Basic and diluted earnings per share for Q3 2025 were $1.62, compared to $1.19 in Q3 2024, marking a 36.1% increase[16]. - Net income for the nine months ended September 30, 2025, was $7,363,000, a decrease from $17,757,000 in the same period of 2024[27]. - The net income for the core banking segment for the three months ended September 30, 2025, was $7,821, compared to $7,792 for the holding company and CFS, indicating a slight increase of 0.4%[133]. Assets and Liabilities - The total assets under management reached $1.2 billion, reflecting a growth of 10% year-over-year[11]. - The Corporation's total assets as of September 30, 2025, were $2,696,634, an increase from $2,663,118 in the previous quarter, representing a growth of approximately 1.3%[133]. - Total assets decreased to $2,696,634 thousand as of September 30, 2025, down from $2,776,147 thousand at December 31, 2024, representing a decline of approximately 2.9%[14]. - The total liabilities decreased to $2,451,326 thousand from $2,560,838 thousand, a reduction of about 4.3%[14]. - Total cash and cash equivalents at the end of the period were $107,646,000, an increase from $80,440,000 at the end of September 2024[27]. Income and Expenses - Non-interest income increased by 20% to $1.1 million, driven by higher fees from wealth management services[9]. - Total non-interest income was $6.1 million for the three months ended September 30, 2025, compared to $5.9 million for the same period in 2024, representing a year-over-year increase of approximately 3.4%[121]. - Total non-interest expenses for the three months ended September 30, 2025, were $17,645, compared to $15,174 in the previous quarter, reflecting an increase of approximately 16.3%[133]. - The Corporation reported net realized losses on securities available for sale of $17.5 million for the nine months ended September 30, 2025, with a tax effect of $(4.3) million, resulting in a net of tax amount of $13.2 million[119]. Credit Losses and Provisions - The allowance for credit losses (ACL) was reported at $500,000, indicating a decrease of 5% from the previous quarter[8]. - Provision for credit losses was $1,064 for the three months ended September 30, 2025, compared to $564 in the same period of 2024, indicating an increase in credit loss provisions[16]. - The allowance for credit losses increased to $23,645 thousand as of September 30, 2025, compared to $21,388 thousand at December 31, 2024, indicating a rise of about 10.6%[14]. - The total provision for credit losses for the nine months ended September 30, 2025, was $3.301 million, compared to a credit of $597 thousand for the same period in 2024[58]. Deposits and Loans - The total deposits increased by 8% to $950 million, reflecting strong customer retention and acquisition efforts[4]. - Total deposits decreased to $2,358,516 thousand, down 1.6% from $2,396,883 thousand as of December 31, 2024[14]. - The company had a net increase in loans of $131,981,000 for the nine months ended September 30, 2025[27]. - Total loans, net of deferred loan fees and costs, increased to $2,202,356,000 as of September 30, 2025, from $2,071,419,000 at December 31, 2024, indicating a growth of 6.3%[51]. Shareholder Equity and Dividends - Total shareholders' equity increased to $245,308 as of September 30, 2025, compared to $215,309 as of December 31, 2024, reflecting a growth of approximately 13.9%[14]. - Cash dividends declared were $0.98 per share, totaling $4,695,000 for the nine months ended September 30, 2025[27]. - Cash dividends declared were $0.34 per share in Q3 2025, an increase from $0.31 per share in Q3 2024[21]. Technology and Expansion - Chemung Financial Corporation plans to expand its market presence by opening two new branches in the upcoming fiscal year[7]. - The company is investing $1 million in new technology to enhance its digital banking services[6]. Securities and Investments - The fair value of available for sale securities as of September 30, 2025, was $280,514,000, down from $531,442,000 at December 31, 2024, indicating a decrease of 47.3%[42][45]. - Unrealized losses on available for sale securities totaled $50,843,000 as of September 30, 2025, with mortgage-backed securities accounting for 94.7% of these losses[48]. - The Corporation sold available for sale securities with a book value of $244.8 million during the second quarter of 2025, resulting in a realized pre-tax loss of $17.5 million[43]. Market and Economic Conditions - The Corporation closely monitors real estate market trends to assess the potential future deterioration in collateral values, which may impact the allowance for credit losses[68]. - The Corporation evaluates credit quality for retail loans based on loan repayment, with modifications subject to ASU 2022-02 being assigned a risk rating of Special Mention[75].

Core Viewpoint - Chemung Financial reported quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.68 per share, but showing an increase from $1.19 per share a year ago, indicating a -3.57% earnings surprise [1][2] Financial Performance - The company posted revenues of $28.84 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.21%, compared to $24.31 million in the same quarter last year [2] - Over the last four quarters, Chemung Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Chemung Financial shares have increased approximately 4.7% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current Zacks Rank for Chemung Financial is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $30 million, and for the current fiscal year, it is $5.90 on revenues of $95.7 million [7] - The trend of estimate revisions for Chemung Financial was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Banks - Southeast industry, to which Chemung Financial belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Chemung Financial Corporation reported net income of $7.8 million, or $1.62 per share, for Q3 2025, compared to a net loss of $6.5 million, or $1.35 per share, in Q2 2025[1]. - Non-interest income for Q3 2025 totaled $6.1 million, a significant recovery from a loss of $10.7 million in Q2 2025[16]. - Net income for the quarter was $7,792 million, a 36.2% increase from $5,720 million in the previous year[69]. - Basic and diluted earnings per share rose to $1.62, compared to $1.19 in the same quarter last year[69]. - Reported net income (GAAP) for the three months ended September 30, 2025, was $7,792,000, a significant recovery from a loss of $6,452,000 in the previous quarter[95]. Revenue and Income Sources - Net interest income for Q3 2025 totaled $22.7 million, an increase of $1.9 million, or 9.1%, from $20.8 million in Q2 2025, driven by a $1.6 million increase in interest income on loans[6]. - Non-interest income rose to $6.1 million, a 3.4% increase from $5.9 million, supported by higher service charges and other non-interest income[31]. - Interest income increased to $33,884 million, up from $33,034 million, reflecting a growth of 2.6%[69]. - Interest and dividend income increased by 4.7% to $33,884 thousand for the three months ended September 30, 2025, compared to $32,362 thousand in 2024[68]. Expenses and Costs - Non-interest expense decreased by $0.2 million, or 1.1%, to $17.6 million in Q3 2025, driven by reductions in professional services and marketing expenses[19]. - Non-interest expense totaled $17,645 million, a 6.9% increase from $16,510 million year-over-year[69]. - Total interest expense decreased to $11,196 million from $12,226 million, a decline of 8.4%[69]. Asset and Liability Management - Total assets decreased by $79.5 million, or 2.9%, to $2.697 billion, influenced by balance sheet repositioning efforts[41]. - Total liabilities decreased by $109.5 million, or 4.3%, to $2.451 billion, reflecting the impact of the Corporation's balance sheet strategies[45]. - Total deposits decreased by $38.4 million, or 1.6%, compared to the prior year-end, with brokered deposits down $92.2 million, partially offset by an increase of $53.8 million in total customer deposits[47]. Loan and Credit Quality - Average balances of total loans increased by $63.1 million, with commercial loans rising by $68.5 million, primarily in commercial real estate[7]. - Provision for credit losses remained stable at $1.1 million for Q3 2025, consistent with the prior quarter[15]. - The allowance for credit losses on loans increased to $23.6 million, representing 1.07% of total loans, up from 1.03% at the end of the previous year[39]. - Provision for credit losses increased to $1.1 million, up from $0.6 million, driven by stronger loan growth of $69.9 million compared to $17.5 million in the prior year[30]. Shareholder Equity and Dividends - Total shareholders' equity rose to $245.3 million as of September 30, 2025, an increase of $30.0 million, or 13.9%, driven by a decrease in accumulated other comprehensive loss and an increase in retained earnings[51]. - The Corporation announced a dividend increase of $0.02 per share, representing a 6.3% increase over the prior quarter[8]. - Cash dividends declared per share increased to $0.34 from $0.31, marking a growth of 9.7%[69]. Market and Capital Position - The market value of total assets under management in the Wealth Management Group increased by $180.6 million, or 8.1%, to $2.393 billion as of September 30, 2025[59]. - The Corporation issued $45.0 million in subordinated debt in June 2025, which qualifies as tier 2 capital at the holding company and tier 1 capital at the Bank[50]. - Uninsured deposits totaled $740.4 million, or 31.4% of total deposits, as of September 30, 2025, up from $652.3 million, or 27.2%, as of December 31, 2024[56]. Efficiency and Performance Ratios - Return on average assets increased to 1.15%, up from 0.88% year-over-year[70]. - Return on average equity rose to 12.89%, compared to 10.96% in the previous period[70]. - Efficiency ratio (unadjusted) improved to 61.32%, down from 65.85% year-over-year[70]. - The efficiency ratio (unadjusted) for Q3 2025 was 61.32%, significantly improved from 175.88% in Q2 2025[88].

Core Points - Chemung Financial Corporation reported a net income of $7.8 million, or $1.62 per share, for Q3 2025, a significant recovery from a net loss of $6.5 million in Q2 2025 and an increase from $5.7 million in Q3 2024 [1] - The growth in net interest income was $1.9 million, or approximately 9%, compared to the prior quarter, driven by increased interest income on loans and a decrease in interest expense on deposits [2][6] - The company emphasized the strength in credit quality and core operations, indicating a strong strategic direction and execution across divisions [3] Financial Performance - Net interest income for Q3 2025 totaled $22.7 million, up from $20.8 million in Q2 2025, marking a 9.1% increase [6] - Interest income on loans increased due to a $63.1 million rise in average loan balances and a seven basis point increase in average yield [7] - Non-interest income for Q3 2025 was $6.1 million, recovering from a loss of $10.7 million in the previous quarter [15] Balance Sheet and Asset Quality - Total assets decreased to $2.697 billion as of September 30, 2025, from $2.776 billion at the end of 2024, primarily due to balance sheet repositioning efforts [40] - Non-performing loans decreased to $7.8 million, or 0.35% of total loans, down from $9.0 million, or 0.43%, at the end of 2024 [36] - The allowance for credit losses on loans increased to $23.6 million as of September 30, 2025, compared to $21.4 million at the end of 2024 [38] Dividends and Shareholder Equity - The company announced a $0.02 per share dividend increase, representing a 6.3% increase over the prior quarter [8] - Total shareholders' equity rose to $245.3 million as of September 30, 2025, a 13.9% increase from $215.3 million at the end of 2024 [49] Market Position and Strategy - The Corporation's strategic balance sheet repositioning included the sale of available for sale securities, which contributed to improved liquidity and capital management [41][55] - The company continues to experience strong demand for commercial lending products, with total commercial loan balances increasing by $154.7 million, or 10.2%, compared to the prior year-end [42]

Core Insights - Chemung Financial Corporation is a regional bank holding company based in New York, offering various financial services including commercial and consumer banking, wealth management, and insurance services [1] - The company faces competition from peers like C&F Financial Corporation and Enterprise Bancorp, which exhibit different efficiencies in capital utilization [1] Financial Performance - Chemung Financial's Return on Invested Capital (ROIC) is -0.52%, while its Weighted Average Cost of Capital (WACC) is 15.17%, leading to a ROIC to WACC ratio of -0.034, indicating insufficient returns to cover capital costs [2] - In comparison, Central Valley Community Bancorp and American National Bankshares Inc. have negative ROIC to WACC ratios of -0.761 and -0.009, respectively, while Investar Holding Corporation shows a high ROIC of 203.48% against a WACC of 23.00%, resulting in a ROIC to WACC ratio of 8.846, demonstrating exceptional efficiency [3][4] Industry Comparison - The analysis indicates that Chemung Financial Corporation is underperforming in capital utilization, while Investar Holding Corporation exemplifies superior efficiency [5] - The comparative analysis highlights varying efficiencies in capital utilization across the banking sector, emphasizing the importance of evaluating ROIC and WACC to assess a company's ability to generate returns relative to its cost of capital [4][5]

Market Overview - Volatility has returned to Wall Street, with major indexes experiencing losses due to concerns over the economy's health and uncertainty regarding a potential interest rate cut by the Federal Reserve in September [1][3][6] - The S&P 500 recorded its fourth consecutive day of losses, while the Nasdaq closed lower for the second day, following a weak jobs report and higher-than-expected wholesale inflation data [3][6] Inflation and Economic Indicators - The producer price index (PPI) rose by 0.9% in July, significantly above the consensus estimate of 0.3%, indicating rising inflation pressures [4][5] - Core PPI, which excludes food and energy prices, also increased by 0.9% month-over-month in July [4] Dividend-Paying Stocks - In light of market volatility, investors may consider dividend-paying stocks for steady income and capital protection [2] - Notable dividend-paying stocks include: - **Chemung Financial Corporation (CHMG)**: Dividend of $0.34 per share, 2.52% yield, 26% payout ratio [8][10] - **M&T Bank Corporation (MTB)**: Dividend of $1.50 per share, 2.84% yield, 34% payout ratio [11][10] - **Martin Marietta Materials, Inc. (MLM)**: Dividend of $0.83 per share, 0.52% yield, 18% payout ratio [13][10] - **United Community Banks, Inc. (UCB)**: Dividend of $0.25 per share, 3.07% yield, 39% payout ratio [15][10]

Market Overview - The U.S. markets started 2025 strong but have faced significant volatility due to tariff pressures and geopolitical uncertainty [1] - Expectations for a September FOMC rate cut have increased amid signs of a cooling labor market and inflationary effects from trade policies [1] Performance of Indices - The S&P 500 has retreated while the Dow Jones Industrial Average has moved higher, indicating volatile performance across indices [2] Investment Opportunities - Dividend-paying stocks are highlighted as a potential source of stability and income during market fluctuations [2] - Companies with resilient business models and a history of profitability can provide steady cash flows through dividends, serving as a defensive anchor for portfolios [2] Bank Stocks to Watch - Chemung Financial Corporation (CHMG), United Community Bank (UCB), and M&T Bank (MTB) have recently announced dividend hikes, enhancing shareholder value [3][9] - These bank stocks have rallied over 10% in the past year [3] Chemung Financial Corporation (CHMG) - As of June 30, 2025, Chemung Financial had $2.9 billion in assets [6] - The company announced a quarterly cash dividend of 34 cents per share, a 6.3% increase from the previous payout, payable on October 1, 2025 [6][9] - Chemung Financial has increased its dividend three times in the past five years, with an annualized growth rate of 3.09% [7] - The dividend yield is 2.52% with a payout ratio of 26% [7] - The Zacks Consensus Estimate for 2025 sales indicates a year-over-year rise of 16.4%, while earnings are expected to increase by 18.9% [11] United Community Bank (UCB) - As of June 30, 2025, UCB had $28.1 billion in assets [12] - The bank announced a quarterly cash dividend of 25 cents per share, a 4.2% increase from the prior payout, payable on October 3, 2025 [13][9] - UCB has increased its dividend seven times in the past five years, with an annualized growth rate of 6.51% [13] - The dividend yield is 3.07% with a payout ratio of 39% [13] - The Zacks Consensus Estimate for 2025 sales reflects a rise of 7.4%, while earnings are expected to grow by 14.8% [17] M&T Bank (MTB) - As of June 30, 2025, M&T Bank had $211.6 billion in assets [17] - The bank announced a quarterly cash dividend of $1.50 per share, an 11% increase from the previous payout, payable on September 30, 2025 [18][9] - M&T Bank has increased its dividend four times in the past five years, with an annualized growth rate of 5.36% [18] - The dividend yield is 2.84% with a payout ratio of 34% [18] - The Zacks Consensus Estimate for 2025 sales suggests a year-over-year growth of 3.6%, while earnings are expected to increase by 11.1% [21]