CHEMUNG FINANCIAL CORP

ITEM 1. LEGAL PROCEEDINGS

In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. On February 4, 2020, the Corporation filed a lawsuit against Pioneer Bank, Albany, New York, in the Supreme Court of the State of New York in the County of Albany. As disclosed in the Corporation’s September 12, 2019 Current Report on Form 8-K, the Bank owns a participating interest totaling $4.2 million in an approximately $36.0 million commercial credit facility on which the borrower defaulted due to fraudulent activity. The Corporation’s complaint alleged that Pioneer Bank, as lead bank, breached the participation agreement and engaged in fraud and negligent misrepresentation. The Corporation received a recovery of $0.5 million in April 2020. The Corporation and Pioneer Bank entered into a settlement agreement on August 6, 2026 to recover an additional $2.9 million. Upon finalization of the settlement agreement, the Corporation will file documentation with the Supreme Court of New York to discontinue the litigation and release Pioneer Bank from further claims.

Other than as noted above, the Corporation believes that it is not a party to any pending legal, arbitration, or regulatory proceedings that could have a material impact on our financial results or liquidity as of June 30, 2026.