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Here are 1-3 brief analogies for Chemung Financial (CHMG):

• A community-focused Bank of America for upstate New York and parts of Pennsylvania.

• Imagine a localized PNC Bank, offering a broad spectrum of financial services within its specific New York and Pennsylvania footprint.

• It's the all-in-one local bank for its region, much like a mini-Wells Fargo serving specific communities in New York and Pennsylvania.

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• Deposit Accounts: Offers a variety of accounts including checking, savings, money market, and time deposits for individuals and businesses.
• Loan Products: Provides commercial, agricultural, residential mortgage, and consumer loans, such as home equity lines of credit.
• Wealth Management & Investment Services: Delivers services encompassing wealth management, employee benefit plans, mutual funds, and brokerage.
• Insurance Products: Offers various insurance products to clients.
• Fiduciary & Trust Services: Acts as guardian, custodian, and trustee, providing administrative services for trusts, pensions, and estate planning.
• Tax Preparation Services: Provides services for preparing tax returns.
• Commercial Financial Services: Offers specialized financial solutions for businesses, including interest rate swaps and letters of credit.

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Chemung Financial (CHMG) primarily serves a diverse customer base, encompassing both individuals and businesses within its operating regions. It does not have a few identifiable "major customers" that are other companies. Instead, its customer base can be categorized as follows:

1. Individuals and Consumers: This category includes individuals seeking personal banking services such as checking and savings accounts, residential mortgage loans, consumer loans (including home equity lines of credit), wealth management, estate planning, and personal insurance and brokerage services.
2. Small to Mid-sized Businesses and Agricultural Enterprises: This segment comprises small to mid-sized businesses and farms that utilize commercial and agricultural loans, commercial mortgage loans, business checking accounts, treasury services (like interest rate swaps and letters of credit), and employee benefit plan administration services.
3. Trusts and Institutional Clients: Chemung Financial provides fiduciary services acting as a guardian, custodian, or trustee. It also serves as an agent for pension, profit-sharing, and other employee benefit trusts, offering various investment, pension, and administrative services to these institutional clients.

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• Jack Henry & Associates (JKHY)

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Anders M. Tomson, President & CEO

Anders M. Tomson was appointed President and Chief Executive Officer of Chemung Financial Corporation and its banking subsidiary, Chemung Canal Trust Company, in December 2016. Prior to this role, he served as President and Chief Operating Officer of the Bank from 2015 to 2016. Tomson joined Chemung Canal in April 2011 as Division President of Capital Bank, a five-branch division, following Chemung Canal's acquisition of Capital Bank & Trust. His previous experience includes serving as Division Executive for commercial real estate in New York State for RBS Citizens Bank and as Senior Vice President and Regional Director for the Community Preservation Corporation, a not-for-profit mortgage lender. He is a graduate of Cornell University.

Dale M. McKim III, Executive Vice President, Chief Financial Officer and Treasurer

Dale M. McKim III serves as the Executive Vice President, Chief Financial Officer, and Treasurer for Chemung Financial Corporation and the Bank. He brings over 25 years of experience in finance and risk management. Before joining Chemung Financial, McKim held positions as Chief Risk Officer for Evans Bank and as a Partner at KPMG LLP in Buffalo.

Peter K. Cosgrove, Executive Vice President & Chief Credit Officer

Peter K. Cosgrove is the Executive Vice President and Chief Credit Officer. He has been with the Bank since 2019, holding titles such as Executive Vice President, Chief Credit Officer, and Chief Risk Officer. Prior to his time at Chemung Canal, Cosgrove was a Regional Sales Executive, East Region, at KeyBank and was part of KeyBank's Merger Integration Leadership Team.

Jeffrey P. Kenefick, Regional President

Jeffrey P. Kenefick holds the title of Regional President and Executive Vice President. He joined Chemung Canal in 2019 and previously served as Senior Vice President and Commercial Loan Manager. Kenefick has over 31 years of banking experience, with a strong focus on commercial banking. Before joining Chemung Canal, he was an Executive Vice President and Regional President at Five Star Bank.

Kimberly A. Hazelton, Executive Vice President, Retail Client Division

Kimberly A. Hazelton serves as the Executive Vice President, Retail Client Division. She is a native of Broome County, New York.

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1. Credit Risk and Asset Quality

Chemung Financial faces significant credit risk, particularly concerning its loan portfolio. The company's disclosures indicate the presence of restructured debt and past-due assets, which could signal stress within parts of its portfolio. There are specific concerns regarding commercial real estate concentrations and indirect auto lending within its loan portfolio. Deterioration in asset quality could lead to increased provisioning for credit losses, negatively impacting earnings and capital adequacy.

2. Interest Rate Risk

As a financial institution, Chemung Financial is exposed to interest rate risk. Changes in market conditions, specifically abrupt shifts in interest rates, can introduce volatility in the company's net interest margin and capital. The company utilizes derivative instruments, such as interest rate swaps, for risk management; however, these derivatives themselves carry inherent interest rate risk exposures.

3. Shareholder Subordination in Liquidation

In a liquidation scenario, Chemung Financial's common stock represents a residual equity claim, meaning it is structurally subordinate to all customer deposits, senior borrowings, and other non-equity obligations. This subordination is further heightened by the approximately $45.0 million in subordinated notes issued in June 2025, as holders of these notes would rank ahead of common shareholders regarding asset recovery.

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The rapid growth of neobanks and fintech lenders that offer fully digital banking services, often with lower fees and more competitive rates for deposits and consumer/small business loans. These digital-first competitors bypass the traditional branch network, directly challenging Chemung Financial's core deposit gathering and lending businesses, especially for customers seeking convenience and digital-native experiences.

The increasing adoption of robo-advisors and digital wealth management platforms that provide automated, low-cost investment management and financial planning services. This trend poses a threat to Chemung Financial's traditional wealth management, employee benefit, and fiduciary services, particularly for segments of the market seeking more accessible and technology-driven investment solutions.

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Here are 3-5 expected drivers of future revenue growth for Chemung Financial (symbol: CHMG) over the next 2-3 years:

1. Net Interest Margin (NIM) Expansion and Net Interest Income Growth: Chemung Financial has shown a focus on expanding its net interest margin, which significantly contributed to its strong performance in Q4 2025. The strategic balance sheet repositioning completed in 2025 benefited net interest income, and management aims for sustained profitability through efficient operations.
2. Commercial Loan Growth: Strong commercial loan growth across key markets was a significant driver for Chemung Financial in 2025, with commercial loans growing 14.3% for the full year. This indicates a continued emphasis on expanding its commercial lending portfolio in various geographies.
3. Geographic Expansion into Higher Growth Markets: The company's 2026 Investor Presentation highlights plans for "Expansion of the franchise in higher growth markets of Albany and Buffalo" and the "Growth of Canal Bank brand in Western New York." This targeted geographic expansion is expected to drive new customer acquisition and loan origination.
4. Growth in Wealth Management and Fee-Based Services: Chemung Financial aims to leverage "High touch relationships with affluent borrowers" to provide a "dependable non-interest income stream." The CFS Group, Inc. subsidiary already offers diverse non-traditional services, including mutual funds, annuities, brokerage services, tax preparation, and insurance, indicating a continued focus on expanding these fee-based offerings.
5. Enhanced Digital Experience: The "Introduction of enhanced digital experience" is a strategic initiative mentioned in the 2026 Investor Presentation. Improving digital banking capabilities is expected to attract and retain customers, streamline operations, and ultimately support overall revenue growth through increased engagement and convenience.

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Share Repurchases

• Chemung Financial Corporation approved a new stock repurchase program on January 8, 2021, authorizing the repurchase of up to 250,000 shares of its common stock, representing approximately 5% of its outstanding shares.
• Under this program, 49,184 shares were repurchased at an average cost of $40.42 per share as of March 1, 2026, totaling approximately $1.99 million in repurchases.
• As of March 10, 2023, 200,816 shares remained authorized for repurchase under the program.

Share Issuance

• In April 2020, Chemung Financial filed a Form S-3 Registration Statement allowing for the potential future sale of up to $50 million in various securities, including common stock.
• The company operates a Dividend Reinvestment and Stock Purchase Plan, which enables shareholders to reinvest dividends or make cash payments to acquire additional stock.

Capital Expenditures

• Capital expenditures for the year ended December 31, 2024, amounted to $1.19 million.
• The average capital expenditure over the last five years was approximately $1.6 million, with other reported values including $2.1 million, $1.6 million, and $1.58 million within that period.
• A primary focus of recent capital expenditures has been on strategic initiatives, including the significant expansion of its presence in Western New York with the opening of a new regional banking center in Williamsville in October 2024 under the Canal Bank brand.