Chemung Financial Q4 net interest income rises 20.2%

Overview

• U.S. bank's net interest income for Q4 rose 20.2% yr/yr, driven by increased interest income on loans and decreased interest expense on deposits

• Provision for credit losses increased due to loan growth and model changes

Outlook

• Company enters 2026 focused on strengthening capabilities and enhancing customer service

Result Drivers

• NET INTEREST MARGIN - Co reported a 16 basis point increase in net interest margin to 3.61% in Q4 2025, attributed to strategic repositioning and disciplined funding cost management

• COMMERCIAL LOAN GROWTH - Co experienced strong commercial loan growth, particularly in the Canal Bank division, contributing to increased net interest income

• BALANCE SHEET REPOSITIONING - Sales of available for sale securities reduced interest expenses and reliance on customer time deposits, supporting loan growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Chemung Financial Corp is $64.25, about 13.1% above its January 23 closing price of $56.80

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXc9qtK3

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