• Chemung Financial Corporation Reports Third Quarter 2022 Net Income of $6.5 million, or $1.37 per Share

    来源: Nasdaq GlobeNewswire / 20 10月 2022 19:16:36   America/Chicago

    ELMIRA, N.Y., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $6.5 million, or $1.37 per share, for the third quarter of 2022, compared to $6.6 million, or $1.42 per share, for the third quarter of 2021.

    "I am pleased to report another quarter of strong financial results for Chemung Financial Corporation, with earnings per share of $1.37," said Anders M. Tomson, President and CEO. "Our interest-earning assets continued to contribute meaningfully to our net interest income this quarter, validating our commitment to organic loan growth which was experienced across all loan portfolios during the quarter. The strength of our balance sheet positions us well for the future," Tomson added.

    Third Quarter Highlights1:

    • Loans1, excluding PPP, grew $266.3 million, or 18.05%.
       
    • Year to date net interest margin increased to 2.98% for the nine months ended September 30, 2022, a fifteen basis points increase when compared to the same period in the prior year.
       
    • Net interest income grew $4.6 million, or 9.5% in the nine month period ending September 30, 2022, when compared to the same period in the prior year.
       
    • Net interest margin increased twenty basis points in the third quarter of 2022 to 3.08% when compared to the prior quarter.
       
    • Net interest income grew $1.3 million, or 7.6% in the third quarter of 2022 when compared to the prior quarter.
       
    • Released $1.2 million pandemic related portion of the allowance for loan losses in the third quarter. No pandemic related allowance for loan losses remains as of September 30, 2022.
       
    • Dividends declared during the third quarter 2022 were $0.31 per share.

    1 Balance sheet comparisons are calculated as of September 30, 2022 versus December 31, 2021.

    3rd Quarter 2022 vs 3rd Quarter 2021 Net Interest Income:
    Net interest income for the third quarter of 2022 totaled $19.0 million compared to $16.8 million for the same period in the prior year, an increase of $2.2 million, or 12.8%, due primarily to increases of $3.0 million in interest income on loans, including fees, and $0.3 million in interest and dividend income on taxable securities, offset by increases of $1.0 million in interest expense on deposits, and $0.2 million in interest expense on borrowed funds.

    The increase in interest income on loans, including fees was due primarily to a $156.6 million increase in average loan balances, representing increases across all loan categories. The average yield on loans increased 30 basis points when compared to the same period in the prior year, primarily related to the commercial loan portfolio due to an increase in average interest rates. The increase in interest and dividend income on taxable securities was due primarily to an increase in average invested balances of $42.4 million, and an eight basis points increase in the average yield due to an increase in average interest rates.

    The increase in interest expense on deposits was due primarily to an increase in the average balances and interest rates on one-way brokered deposits, when compared to the same period in the prior year. The increase in interest expense on borrowed funds was due primarily to an increase in the average balances and interest rates of overnight FHLBNY borrowing in the current quarter, when compared to the same period in the prior year.

    Fully taxable equivalent net interest margin was 3.08% for the third quarter 2022, compared to 2.88% for the same period in the prior year. Average interest-earning assets increased $129.4 million for the three months ended September 30, 2022 compared to the same period in the prior year. The average yield on interest-earning assets increased 39 basis points to 3.41%, and the average cost of interest-bearing liabilities increased 29 basis points to 0.51%, for the three months ended September 30, 2022, when compared to the same period in the prior year.

    Non-Interest Income:

    Non-interest income for the third quarter of 2022 was $5.0 million compared to $6.0 million for the same period in the prior year, a decrease of $1.0 million, or 15.6%. The decrease in the current quarter was due primarily to decreases of $0.4 million in wealth management group fee income, $0.3 million in other non-interest income, $0.2 million in net gains on sales of loans held for sale, $0.1 million in interchange revenue from debit card transactions, and $0.1 million in change in fair value of equity investments, offset by an increase of $0.1 million in service charges on deposit accounts.

    The decrease in wealth management group fee income was primarily due to a decrease in the market value of the total assets under management or administration. The decrease in other non-interest income was primarily attributable to $0.1 million one-time property and sales tax refunds, and a $0.1 million gain on the sale of real estate property associated with a branch closure, in the same period of the prior year. The decrease in net gains on sales of loans held for sale was primarily attributable to a decrease in residential mortgage loans sold into the secondary market when compared to the same period in the prior year. The decrease in interchange revenue from debit card transactions was primarily attributable to a decrease in consumer debit card usage when compared to the same period in the prior year. The decrease in fair value of equity investments in the current quarter was due to a decrease in the market value of the assets held. The increase in service charges on deposit accounts in the current quarter was primarily attributable to an increase in NSF and overdraft fees when compared to the same period in the prior year.

    Non-Interest Expense:

    Non-interest expense for the third quarter of 2022 was $14.6 million compared to $14.1 million for the same period in the prior year, an increase of $0.5 million, or 3.4%. The increase can be mostly attributed to increases of $0.5 million in pension and other employee benefits, $0.3 million in salaries and wages, and $0.1 million in marketing and advertising expenses, offset by decreases of $0.3 million in loan expenses and $0.2 million in net occupancy expenses.

    Pension and other employee benefits increased primarily due to an increase in employee healthcare costs when compared to the same quarter in the prior year. The increase in salaries and wages can be primarily attributed to new and seasonal hiring and severance expense and a decrease in deferred salary costs related to PPP, when compared to the same period in the prior year. The increase in marketing and advertising expenses can be primarily attributed to the timing of initiatives. Loan expenses decreased primarily due to the timing of flat fee payments related to indirect loan activity. Net occupancy expenses decreased primarily due to decreases in depreciation expense related to the sale of properties, when compared to the same period in the prior year.

    Income Tax Expense:

    Income tax expense for the third quarter of 2022 and 2021 was $1.7 million, respectively. The effective tax rate for the current quarter increased to 21.2% compared to 20.4% for the same period in the prior year.

    3rd Quarter 2022 vs 2nd Quarter 2022

    Net Interest Income:

    Net interest income for the third quarter of 2022 totaled $19.0 million compared to $17.6 million for the prior quarter, an increase of $1.4 million, or 7.6%, due primarily to increases of $2.3 million in interest income on loans, including fees, and $0.1 million in interest and dividend income on taxable securities, offset by an increase of $1.0 million in interest expense on deposit accounts and $0.1 million in interest expense on borrowed funds.

    The increase in interest income on loans, including fees, can be primarily attributed to an $88.1 million increase in average invested loan balances representing increases across all loan categories. The average yield on loans increased 29 basis points due to an increase in interest rates, when compared to the prior quarter. The increase in interest and dividend income on taxable securities can be primarily attributed to an 11 basis points increase in the average yield on taxable securities in the third quarter of 2022 when compared to the prior quarter. The increase in interest expense on deposits was due primarily to an increase in one-way brokered deposits, when compared to the prior quarter. The increase in interest expense on borrowed funds was due primarily to an increase in interest rates on overnight FHLBNY borrowings in the current quarter, when compared to the prior quarter.

    Fully taxable equivalent net interest margin was 3.08% in the current quarter compared to 2.97% in the prior quarter. Average interest-earning assets increased $61.5 million in the current quarter compared to the prior quarter. The average yield on interest-earning assets increased 29 basis points to 3.41% and the average cost of interest-bearing liabilities increased 27 basis points to 0.51%, for the three months ended September 30, 2022, compared to the prior quarter.

    Non-Interest Income:

    Non-interest income for the third quarter of 2022 was $5.0 million compared to $5.3 million for the prior quarter, a decrease of $0.3 million, or 5.3%. The decrease was mostly attributed to decreases of $0.2 million in wealth management group fee income, $0.1 million in other non-interest income, and $0.1 million in interchange revenue from debit card transactions, offset by increases of $0.1 million in the change in fair value of equity investments, and $0.1 million in service charges on deposit accounts. The decrease in wealth management group fee income was primarily attributed to a decrease in the market value of the total assets under management or administration. The decrease in interchange revenue from debit card transactions was primarily attributed to a decrease in consumer debit card usage when compared to the prior quarter. The increase in service charges on deposit accounts was primarily attributed to an increase in NSF and overdraft fees when compared to the prior quarter.

    Non-Interest Expense:

    Non-interest expense for the third quarter of 2022 was $14.6 million compared to $14.3 million for the prior quarter, an increase of $0.3 million, or 1.6%. The increase can be mostly attributed to increases of $0.5 million in salaries and wages, and $0.3 million in other non-interest expense, offset by a decrease of $0.4 million in data processing expenses.

    The increase in salaries and wages can be primarily attributed to new and seasonal hiring and severance expense, offset by a decrease in the market value of the Corporation's deferred compensation plan in the third quarter of 2022. The increase in other non-interest expense can be primarily attributed to the recapture of $0.2 million of accrued expenditures related to the resolution of a telecommunication contract dispute in the prior quarter. The decrease in data processing expense can be primarily attributed to the timing of invoices, when compared to the second quarter of 2022.

    Income Tax Expense:

    Income tax expense for the third quarter of 2022 was $1.7 million compared to $2.3 million for the prior quarter, a decrease of $0.6 million in income tax expense. The effective tax rate for the current quarter decreased to 21.2% compared to 22.6% in the prior quarter.

    Asset Quality

    Non-performing loans totaled $8.3 million at September 30, 2022, or 0.48% of total loans, compared to $8.1 million, or 0.54% of total loans at December 31, 2021. Non-performing assets, which are comprised of non-performing loans and other real estate owned, were $8.5 million, or 0.33% of total assets, at September 30, 2022, compared to $8.2 million, or 0.34% of total assets, at December 31, 2021. The increase in non-performing loans can mostly be attributed to the addition of two commercial loans, offset by payments received on non-performing loans across all loan portfolios. The increase in non-performing assets can be primarily attributed to the increase in non-performing loans.

    Management performs an ongoing assessment of the adequacy of the allowance for loan losses based upon a number of factors including an analysis of historical loss factors, collateral evaluations, recent charge-off experience, credit quality of the loan portfolio, current economic conditions and loan growth. Management continued to evaluate the potential impact of the COVID-19 pandemic as it relates to the loan portfolio. As part of this analysis, the Corporation released the final $1.2 million of the pandemic related portion of the allowance in the third quarter of 2022. In total, the Corporation released $4.3 million and utilized $0.5 million of the pandemic related allowance established in 2020.

    The allowance for loan losses was $18.6 million at September 30, 2022 and $21.0 million at December 31, 2021, respectively. The decrease in the allowance for loan losses can mostly be attributed to the $2.4 million release of pandemic related portion of the allowance as of September 30, 2022, the $1.5 million release of a specific reserve related to the sale of a large commercial real estate credit, positive impacts of $0.8 million related to upgrades of two large commercial credits, and a $1.0 million decrease in the historical loss factor due to the roll-off of a commercial real estate owner occupied property previously charged off in the second quarter of 2020. These decreases in the allowance were offset by additional provision of $1.7 million related to increased loan growth, along with additional provision for loan concentrations and deteriorating national economic conditions.

    The allowance for loan losses was 224.21% of non-performing loans at September 30, 2022 compared to 259.17% at December 31, 2021. The ratio of the allowance for loan losses to total loans was 1.07% at September 30, 2022 compared to 1.38% at December 31, 2021. The ratio of the allowance for loan losses to total loans excluding PPP loans was 1.07% at September 30, 2022, compared to 1.43% at December 31, 2021.

    Balance Sheet Activity

    Total assets were $2.551 billion at September 30, 2022 compared to $2.418 billion at December 31, 2021, an increase of $132.9 million, or 5.5%. The increase can be mostly attributed to increases of $224.5 million in loans, net of deferred origination fees and costs, $45.9 million in accrued interest receivable and other assets, $15.4 million in total cash and cash equivalents, and a decrease of $2.4 million in allowance for loan losses, offset by a decrease of $151.7 million in securities available for sale, at estimated fair value.

    The increase in loans, net of deferred loan fees, can mostly be attributed to increases of $143.8 million in commercial loans, $23.8 million in residential mortgage loans, and $56.9 million in consumer loans. Paydowns due to SBA forgiveness of PPP loans decreased the total loan portfolio by $40.2 million as of September 30, 2022, when compared to December 31, 2021. The increase in accrued interest receivable and other assets was primarily due to increases of $25.9 million in the deferred tax asset, related to the market value adjustment on the available for sale securities portfolio, and $19.3 million in the interest rate swap asset. The increase in cash and cash equivalents was primarily due to changes in deposits, securities, and loans. The decrease in securities available for sale can be mostly attributed to $73.3 million in paydowns and a decrease in the fair value of the portfolio of $99.4 million due to increases in interest rates, offset by purchases of $24.3 million.

    Total liabilities were $2.396 billion at September 30, 2022 compared to $2.207 billion at December 31, 2021, an increase of $188.9 million, or 8.6%. The increase in total liabilities can primarily be attributed to increases of $177.1 million, or 8.2% in deposits, and $26.4 million in accrued interest payable and other liabilities, offset by a decrease of $14.1 million in advances and other debt.

    The increase in deposits was due primarily to increases of $26.8 million in public deposits, $119.7 million of one-way brokered deposits, and $34.5 million in consumer deposits, offset by a decrease of $3.8 million in commercial deposits. The increase in accrued interest payable and other liabilities was primarily attributed to an increase of $19.1 million in the interest rate swap liability. The decrease in advances and other debt can be attributed to a decrease in overnight FHLBNY borrowings.

    Total shareholders’ equity was $155.5 million at September 30, 2022, compared to $211.5 million at December 31, 2021, a decrease of $56.0 million, or 26.5%, primarily due to a $73.4 million decrease in accumulated other income (loss), offset by an increase of $17.0 million in retained earnings. The decrease in accumulated other comprehensive income (loss) can be attributed to a decrease in the fair market value of the securities portfolio due to the increase in interest rates. The increase in retained earnings was due primarily to net income of $21.3 million, offset by $4.3 million in dividends declared.

    The total equity to total assets ratio was 6.10% at September 30, 2022, compared to 8.74% at December 31, 2021. The tangible equity to tangible assets ratio was 5.29% at September 30, 2022 compared to 7.91% at December 31, 2021. Book value per share decreased to $33.14 at September 30, 2022 from $45.09 at December 31, 2021. As of September 30, 2022, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action.

    Liquidity

    Management believes that the Corporation's liquidity position is strong. The Corporation uses a variety of resources to meet its liquidity needs. These include short term investments, cash flow from lending and investing activities, core- deposit growth and non-core funding sources, such as time deposits of $100,000 or more, brokered deposits, FHLBNY advances, and other borrowings. As of September 30, 2022, the Corporation's cash and cash equivalents balance was $42.4 million. The Corporation also maintains an investment portfolio of securities available for sale, comprised primarily of mortgage-backed securities and municipal bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if the need should arise. As of September 30, 2022, the Corporation's investment in securities available for sale was $640.4 million, $481.7 million of which was not pledged as collateral. Additionally, the Bank's unused borrowing capacity at the Federal Home Loan Bank of New York was $203.5 million, as of September 30, 2022. As of September 30, 2022, the Corporation entered into one-way brokered deposit arrangements with 4-week and 13-week terms totaling $119.7 million.

    Other Items

    The market value of total assets under management or administration in our Wealth Management Group was $1.921 billion at September 30, 2022, including $309.0 million of assets under management or administration for the Corporation, compared to $2.325 billion at December 31, 2021, including $344.2 million of assets under management or administration for the Corporation, a decrease of $403.4 million, or 17.35%, due to a general decline in market value.

    As previously announced on January 8, 2021, the Corporation announced that the Board of Directors approved a new stock repurchase program. Under the new repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission. As of September 30, 2022, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the third quarter of 2022. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares at September 30, 2022.

    About Chemung Financial Corporation

    Chemung Financial Corporation is a $2.6 billion financial services holding company headquartered in Elmira, New York and operates 31 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services and insurance, and Chemung Risk Management, Inc., a captive insurance company based in the State of Nevada.

    This press release may be found at: www.chemungcanal.com under Investor Relations.

    Forward-Looking Statements

    This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation's expected financial position and operating results, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, cyber security risks, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, COVID-19, and changes in general business and economic trends.

    Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2021 Annual Report on Form 10-K. These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http:// www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.


    Chemung Financial Corporation 
    Consolidated Balance Sheets (Unaudited)
      Sept. 30,June 30,March 31,Dec. 31,Sept. 30,
    (in thousands)  2022  2022  2022  2021  2021 
    ASSETS      
    Cash and due from financial institutions $32,262 $24,371 $21,757 $17,365 $28,859 
    Interest-earning deposits in other financial institutions  10,161  5,397  43,726  9,616  32,838 
    Total cash and cash equivalents  42,423  29,768  65,483  26,981  61,697 
    Equity investments  2,677  2,750  2,949  2,964  2,933 
    Securities available for sale  640,352  692,995  746,343  792,026  761,531 
    Securities held to maturity  3,210  2,943  3,576  3,790  3,183 
    FHLB and FRB stocks, at cost  3,872  5,897  3,576  4,218  3,562 
    Total investment securities  647,434  701,835  753,495  800,034  768,276 
    Commercial  1,203,608  1,124,701  1,102,304  1,059,848  1,060,230 
    Mortgage  283,128  276,847  264,816  259,334  253,991 
    Consumer  256,018  216,014  199,405  199,067  202,447 
    Loans, net of deferred loan fees  1,742,754  1,617,562  1,566,525  1,518,249  1,516,668 
    Allowance for loan losses  (18,631) (17,485) (19,928) (21,025) (20,940)
    Loans, net  1,724,123  1,600,077  1,546,597  1,497,224  1,495,728 
    Loans held for sale      345  396  224 
    Premises and equipment, net  16,581  16,812  17,260  17,969  18,370 
    Operating lease right-of-use assets  6,646  6,841  7,035  7,234  7,084 
    Goodwill  21,824  21,824  21,824  21,824  21,824 
    Other intangible assets, net      4  15  26 
    Accrued interest receivable and other assets  89,710  70,004  59,903  43,834  41,494 
    Total assets $2,551,418 $2,449,911 $2,474,895 $2,418,475 $2,417,656 


    LIABILITIES AND SHAREHOLDERS' EQUITY
          
    Deposits:      
    Non-interest-bearing demand deposits $747,972 $704,996 $726,699 $739,607 $725,181 
    Interest-bearing demand deposits  287,172  267,554  284,689  284,721  282,036 
    Money market accounts  664,616  641,008  699,506  654,553  661,049 
    Savings deposits  282,916  285,593  283,369  280,195  275,137 
    Time deposits  349,864  283,640  255,329  196,357  230,419 
    Total deposits  2,332,540  2,182,791  2,249,592  2,155,433  2,173,822 
    Advances and other debt  4,104  49,331  3,527  18,164  3,659 
    Operating lease liabilities  6,810  6,998  7,186  7,378  7,227 
    Accrued interest payable and other liabilities  52,445  36,101  29,080  26,045  26,809 
    Total liabilities  2,395,899  2,275,221  2,289,385  2,207,020  2,211,517 
    Shareholders' equity      
    Common stock  53  53  53  53  53 
    Additional-paid-in capital  47,506  47,196  46,880  46,901  47,203 
    Retained earnings  205,874  200,870  194,295  188,877  183,873 
    Treasury stock, at cost  (18,033) (18,084) (18,113) (17,846) (17,924)
    Accumulated other comprehensive income (loss)  (79,881) (55,345) (37,605) (6,530) (7,066)
    Total shareholders' equity  155,519  174,690  185,510  211,455  206,139 
    Total liabilities and shareholders' equity $2,551,418 $2,449,911 $2,474,895 $2,418,475 $2,417,656 
    Period-end shares outstanding  4,693  4,691  4,689  4,689  4,679 


    Chemung Financial Corporation
    Consolidated Statements of Income (Unaudited)

     Three Months Ended
    September 30,

       Nine Months Ended
    September 30,

      
    (in thousands, except per share data) 2022  2021 Percent
    Change
      2022  2021 Percent
    Change
    Interest and dividend income:

    Loans, including fees


    $


            17,670
     

    $


            14,655
     

    20.6
      

    $


    47,541
     

    $


    43,964
     

    8.1
     
    Taxable securities 2,982  2,678 11.4   8,533  6,431 32.7 
    Tax exempt securities 267  265 0.8   805  792 1.6 
    Interest-earning deposits 80  35 128.6   116  131 (11.5)
    Total interest and dividend income 20,999  17,633 19.1   56,995  51,318 11.1 
    Interest expense:

    Deposits
     



    1,805
      



    768
     



    135.0
       



    3,322
      



    2,521
     



    31.8
     
    Borrowed funds 204  33 518.2   365  100 265.0 
    Total interest expense 2,009  801 150.8   3,687  2,621 40.7 


    Net interest income
     

    18,990
      

    16,832
     

    12.8
       

    53,308
      

    48,697
     

    9.5
     
    Provision for loan losses 1,255  356 252.5   (1,634) (53)2,983.0 
    Net interest income after provision for loan losses 17,735  16,476 7.6   54,942  48,750 12.7 
    Non-interest income:

    Wealth management group fee income
     

    2,403
      

    2,765
     

    (13.1


    )
      

    7,788
      

    8,246
     

    (5.6


    )
    Service charges on deposit accounts 989  856 15.5   2,789  2,305 21.0 
    Interchange revenue from debit card transactions 1,126  1,237 (9.0)  3,462  3,622 (4.4)
    Change in fair value of equity investments (93) 15 (720.0)  (448) 203 N/M
    Net gains on sales of loans held for sale 7  242 (97.1)  106  884 (88.0)
    Net gains (losses) on sales of other real estate owned 22   N/M  68  (18)(477.8)
    Income from bank owned life insurance 12  13 (7.7)  34  39 (12.8)
    Other 570  842 (32.3)  2,219  2,802 (20.8)
    Total non-interest income 5,036  5,970 (15.6)  16,018  18,083 (11.4)
    Non-interest expense:

    Salaries and wages
     

    6,550
      

    6,259
     

    4.6
       

    18,829
      

    18,058
     

    4.3
     
    Pension and other employee benefits 2,024  1,511 34.0   5,679  4,450 27.6 
    Other components of net periodic pension and postretirement benefits (413) (391)5.6   (1,224) (1,173)4.3 
    Net occupancy 1,269  1,432 (11.4)  4,065  4,446 (8.6)
    Furniture and equipment 493  409 20.5   1,340  1,185 13.1 
    Data processing 2,087  2,210 (5.6)  6,742  6,261 7.7 
    Professional services 442  542 (18.5)  1,627  1,531 6.3 
    Amortization of intangible assets   42 (100.0)  15  232 (93.5)
    Marketing and advertising 266  162 64.2   726  572 26.9 
    Other real estate owned expense 12  7 71.4   (17) 24 (170.8)
    FDIC insurance 389  356 9.3   987  1,075 (8.2)
    Loan expense (64) 196 (132.7)  327  720 (54.6)
    Other 1,522  1,365 11.5   4,491  3,923 14.5 
    Total non-interest expense 14,577  14,100 3.4   43,587  41,304 5.5 
    Income before income tax expense 8,194  8,346 (1.8)  27,373  25,529 7.2 
    Income tax expense 1,741  1,700 2.4   6,029  5,558 8.5 
    Net income$6,453 $6,646 (2.9) $21,344 $19,971 6.9 
    Basic and diluted earnings per share$1.37 $1.42   $4.55 $4.26  
    Cash dividends declared per share 0.31  0.31    0.93  0.88  
    Average basic and diluted shares outstanding 4,692  4,678    4,691  4,683  


    N/M - Not Meaningful
           


    Chemung Financial Corporation As of or for the Three Months Ended
     As of or for the
    Nine Months Ended

     
    Consolidated Financial Highlights (Unaudited)
    (in thousands, except per share data)
     Sept. 30,
    2022
    June 30,
    2022
    Mar. 31,
    2022
    Dec. 31,
    2021
    Sept. 30,
    2021
    Sept. 30,
    2022
     Sept. 30,
    2021
     
    RESULTS OF OPERATIONS
    Interest income
     $20,999 $18,538 $17,458 $17,690 $17,633 $56,995  $51,318  
    Interest expense  2,009  897  781  798  801  3,687   2,621  
    Net interest income  18,990  17,641  16,677  16,892  16,832  53,308   48,697  
    Provision (credit) for loan losses  1,255  (1,744) (1,145) 70  356  (1,634)  (53) 
    Net interest income after provision for loan losses  17,735  19,385  17,822  16,822  16,476  54,942   48,750  
    Non-interest income  5,036  5,319  5,663  5,787  5,970  16,018   18,083  
    Non-interest expense  14,577  14,342  14,668  14,378  14,100  43,587   41,304  
    Income before income tax expense  8,194  10,362  8,817  8,231  8,346  27,373   25,529  
    Income tax expense  1,741  2,338  1,950  1,777  1,700  6,029   5,558  
    Net income $6,453 $8,024 $6,867 $6,454 $6,646 $21,344  $19,971  
    Basic and diluted earnings per share$1.37 $1.72 $1.46 $1.38 $1.42 $4.55  $4.26  
    Average basic and diluted shares outstanding 4,692  4,690  4,689  4,682  4,678  4,691   4,683  
    PERFORMANCE RATIOS        
    Return on average assets 1.02% 1.32% 1.14% 1.04% 1.09% 1.16% 1.11% 
    Return on average equity 14.17% 18.06% 13.68% 12.30% 12.68% 15.23% 13.16% 
    Return on average tangible equity (a) 16.12% 20.58% 15.32% 13.74% 14.16% 17.23% 14.75% 
    Efficiency ratio (unadjusted) (f) 60.67% 62.47% 65.66% 63.40% 61.84% 62.87% 61.85% 
    Efficiency ratio (adjusted) (a) (b) 60.40% 62.17% 65.32% 63.11% 61.40% 62.57% 61.25% 
    Non-interest expense to average assets 2.30% 2.35% 2.43% 2.32% 2.30% 2.36% 2.29% 
    Loans to deposits 74.71% 74.11% 69.64% 70.44% 69.77% 74.71% 69.77% 
    YIELDS / RATES - Fully Taxable Equivalent        
    Yield on loans 4.19% 3.90% 3.84% 3.90% 3.84% 3.98% 3.79% 
    Yield on investments 1.72% 1.60% 1.47% 1.35% 1.49% 1.59% 1.33% 
    Yield on interest-earning assets 3.41% 3.12% 3.00% 2.99% 3.02% 3.18% 2.98% 
    Cost of interest-bearing deposits 0.47% 0.21% 0.20% 0.21% 0.21% 0.30% 0.23% 
    Cost of borrowings 2.56% 1.70% 2.65% 2.16% 3.56% 2.17% 3.57% 
    Cost of interest-bearing liabilities 0.51% 0.24% 0.21% 0.22% 0.22% 0.32% 0.24% 
    Interest rate spread 2.90% 2.88% 2.79% 2.77% 2.80% 2.86% 2.74% 
    Net interest margin, fully taxable equivalent 3.08% 2.97% 2.87% 2.85% 2.88% 2.98% 2.83% 
    CAPITAL        
    Total equity to total assets at end of period 6.10% 7.13% 7.50% 8.74% 8.53% 6.10% 8.53% 
    Tangible equity to tangible assets at end of period (a) 5.29% 6.30% 6.67% 7.91% 7.69% 5.29% 7.69% 
    Book value per share$33.14 $37.24 $39.56 $45.09 $44.00 $33.14 $44.00  
    Tangible book value per share (a) 28.49  32.59  34.91  40.44  39.34  28.49  39.34  
    Period-end market value per share 41.87  47.00  46.69  46.45  45.30  41.87  45.30  
    Dividends declared per share 0.31  0.31  0.31  0.31  0.31  0.93  0.88  
    AVERAGE BALANCES
    Loans and loans held for sale (c)
    $1,675,859 $1,587,777 $1,532,445 $1,520,478 $1,519,264 $1,599,218 $1,554,039  
    Interest earning assets 2,457,218  2,395,704  2,371,275  2,364,578  2,327,817  2,408,379  2,310,968  
    Total assets 2,511,288  2,446,763  2,451,944  2,454,294  2,427,107  2,469,632  2,411,007  
    Deposits 2,257,394  2,203,231  2,211,442  2,205,632  2,181,517  2,224,190  2,170,198  
    Total equity 180,631  178,207  203,613  208,147  208,023  187,409  202,923  
    Tangible equity (a) 158,807  156,382  181,778  186,302  186,155  165,581  180,971  
    ASSET QUALITY
    Net charge-offs (recoveries)
    $109 $699 $(48)$(15)$92 $760 $(69) 
    Non-performing loans (d) 8,310  7,374  7,703  8,114  8,373  8,310  8,373  
    Non-performing assets (e) 8,503  7,665  7,956  8,226  8,544  8,503  8,544  
    Allowance for loan losses 18,631  17,485  19,928  21,025  20,940  18,631  20,940  
    Annualized net charge-offs (recoveries) to average loans 0.03% 0.18% (0.01%) (0.01%) 0.02% 0.06% (0.01%) 
    Non-performing loans to total loans 0.48% 0.46% 0.49% 0.54% 0.56% 0.48% 0.56% 
    Non-performing assets to total assets 0.33% 0.31% 0.32% 0.34% 0.35% 0.33% 0.35% 
    Allowance for loan losses to total loans 1.07% 1.08% 1.27% 1.38% 1.38% 1.07% 1.38% 
    Allowance for loan losses to total loans, net of PPP 1.07% 1.08% 1.29% 1.43% 1.45% 1.07% 1.45% 
    Allowance for loan losses to non-performing loans 224.21% 237.12% 258.65% 259.17% 250.08% 224.21% 250.08% 
    1.  See the GAAP to Non-GAAP reconciliations.
    2. Efficiency ratio (adjusted) is non-interest expense less amortization of intangible assets less legal reserve divided by the total of fully taxable equivalent net interest income plus non- interest income less net gains or losses on securities transactions.
    3. Loans and loans held for sale do not reflect the allowance for loan losses.
    4. Non-performing loans include non-accrual loans only.
    5. Non-performing assets include non-performing loans plus other real estate owned.
    6. Efficiency ratio (unadjusted) is non-interest expense divided by the total of net interest income plus non-interest income.


    Chemung Financial Corporation
    Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)

     Three Months Ended
    September 30, 2022

     Three Months Ended
    September 30, 2021

     Three Months Ended
    September 30, 2022 vs. 2021

     
      Average
    Balance
       Interest Yield /
    Rate
      Average
    Balance
       Interest Yield /
    Rate
      Total
    Change
       Due to
    Volume
       Due to
    Rate
     
    (in thousands)                             
    Interest earning assets:
    Commercial loans


    $


    1,164,783
      

    $


    13,120
     

    4.47


    %


    $


    1,065,476
      

    $


    10,656
     

    3.97


    %


    $


    2,464
      

    $


    1,049
      

    $


    1,415
     
    Mortgage loans 279,102   2,389 3.40% 249,651   2,086 3.32% 303   252   51 
    Consumer loans 231,974   2,211 3.78% 204,137   1,944 3.78% 267   267    
    Taxable securities 723,602   2,985 1.64% 681,160   2,678 1.56% 307   168   139 
    Tax-exempt securities 41,918   326 3.09% 41,654   327 3.11% (1)  2   (3)
    Interest-earning deposits 15,839   80 2.00% 85,739   36 0.17% 44   (53)  97 
    Total interest earning assets 2,457,218   21,111 3.41% 2,327,817   17,727 3.02% 3,384   1,685   1,699 
    Non-interest earnings assets: Cash and due from banks 

    24,481
         

    27,421
             
    Other assets 47,256     92,719         
    Allowance for loan losses (17,667)    (20,850)        
    Total assets$2,511,288    $2,427,107         
    Interest-bearing liabilities: Interest-bearing checking$258,420  $112 

    0.17
    %$272,236  $52 0.08%$60  $(3

    )
     $63 
    Savings and money market 927,737   575 0.25% 943,996   205 0.09% 370   (4)  374 
    Time deposits 344,363   1,118 1.29% 236,062   511 0.86% 607   290   317 
    Capital leases and other debt 31,646   204 2.56% 3,681   33 3.56% 171   183   (12)
    Total int.-bearing liabilities 1,562,166   2,009 0.51% 1,455,975   801 0.22% 1,208   467   741 

    Non-interest-bearing liabilities:
                 
    Demand deposits 726,874     729,223         
    Other liabilities 41,617     33,886         
    Total liabilities 2,330,657     2,219,084         
    Shareholders' equity 180,631     208,023         
    Total liabilities and shareholders' equity

    $
    2,511,288    

    $
    2,427,107         
    Fully taxable equivalent net interest income   19,102     16,926  

    $
    2,176  

    $
    1,219  

    $
    957 
    Net interest rate spread (1)   2.90%   2.80%     
    Net interest margin, fully taxable equivalent (2)
    Taxable equivalent adjustment
       (112

    )
    3.08%   (94

    )
    2.88%     
    Net interest income  $18,990    $16,832       
    1. Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
    2. Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.


    Chemung Financial Corporation
    Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)

     Nine Months Ended
    September 30, 2022

     Nine Months Ended
    September 30, 2021

     Nine Months Ended
    September 30, 2022 vs. 2021

    (in thousands)

    Interest earning assets:
    Average
    Balance

     Interest Yield /
    Rate
     Average
    Balance

     

    Interest
     Yield /
    Rate
     Total
    Change

     Due to
    Volume

     Due to
    Rate
    Commercial loans$1,116,687 $34,911 4.18% $1,100,503 $31,741 3.86% $3,170 $478 $2,692 
    Mortgage loans 270,484  6,798 3.36%  246,179  6,342 3.44%  456  608  (152)
    Consumer loans 212,047  5,953 3.75%  207,357  5,970 3.85%  (17) 136  (153)
    Taxable securities 744,503  8,542 1.53%  616,862  6,435 1.39%  2,107  1,417  690 
    Tax-exempt securities 42,190  989 3.13%  41,401  976 3.15%  13  19  (6)
    Interest-earning deposits 22,468  116 0.69%  98,666  131 0.18%  (15) (164) 149 
    Total interest earning assets 2,408,379  57,309 3.18%  2,310,968  51,595 2.98%  5,714  2,494  3,220 


    Non-interest earnings assets:
               
    Cash and due from banks 24,317     26,789       
    Other assets 56,593     94,323       
    Allowance for loan losses (19,657)    (21,073)      
    Total assets$2,469,632    $2,411,007       




    Interest-bearing liabilities:
               
    Interest-bearing checking$275,062  $219 0.11%$282,970  $174 0.08%$45 $(6)$51 
    Savings and money market 948,411   1,029 0.15% 928,137   714 0.10% 315  13  302 
    Time deposits 276,717   2,075 1.00% 267,475   1,633 0.82% 442  60  382 
    Capital leases and other debt 22,414   364 2.17% 3,745   100 3.57% 264  317  (53)
    Total int.-bearing liabilities 1,522,604   3,687 0.32% 1,482,327   2,621 0.24% 1,066  384  682 


    Non-interest-bearing liabilities:
               
    Demand deposits 724,000     691,616       
    Other liabilities 35,619     34,141       
    Total liabilities 2,282,223     2,208,084       
    Shareholders' equity 187,409     202,923       
    Total liabilities and shareholders' equity$2,469,632    $2,411,007       
    Fully taxable equivalent net interest income   53,622     48,974  $



    4,648
     $2,110 $2,538 
    Net interest rate spread (1)   2.86%   2.74%   
    Net interest margin, fully taxable equivalent (2)   

    2.98


    %
       

    2.83


    %
       
    Taxable equivalent adjustment   (314)    (277)    
    Net interest income  $53,308    $48,697     
    1. Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
    2. Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.

    Chemung Financial Corporation

    GAAP to Non-GAAP Reconciliations (Unaudited)

    The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.

    In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of its competitors. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

    The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them.

    Fully Taxable Equivalent Net Interest Income and Net Interest Margin

    Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices.

     As of or for the Three Months Ended
     As of or for the
    Nine Months Ended


    (in thousands, except ratio data)
    Sept. 30,
    2022
    June 30,
    2022
    March 31,
    2022
    Dec. 31,
    2021
    Sept. 30,
    2021
     Sept. 30,
    2022
    Sept. 30,
    2021
    NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT
    Net interest income (GAAP)$        18,990 $        17,641 $        16,677 $        16,892 $        16,832 $53,308 $48,697 
    Fully taxable equivalent adjustment 112  103  99  105  94  314  277 
    Fully taxable equivalent net interest income (non-GAAP)$        19,102 $        17,744 $        16,776 $        16,997 $        16,926 $53,622 $48,974 


    Average interest-earning assets (GAAP)


    $


    2,457,218
     

    $


    2,395,704
     

    $


    2,371,275
     

    $


    2,364,578
     

    $


    2,327,817
     

    $


    2,408,379
     

    $


    2,310,968
     


    Net interest margin - fully taxable equivalent (non-GAAP)
     

    3.08


    %
     

    2.97


    %
     

    2.87


    %
     

    2.85


    %
     

    2.88


    %
     

    2.98


    %
     

    2.83


    %

    Efficiency Ratio

    The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non- interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.        

     
    As of or for the Three Months Ended
     As of or for the
    Nine Months Ended


    (in thousands, except ratio data)
    Sept. 30,
    2022
     June 30,
    2022
     March 31,
    2022
     Dec. 31,
    2021
     Sept. 30,
    2021
     Sept. 30,
    2022
    Sept. 30,
    2021
    EFFICIENCY RATIO

    Net interest income (GAAP)


    $


    18,990
      

    $


    17,641
      

    $


    16,677
      

    $


    16,892
      

    $


    16,832
      

    $


    53,308
     

    $


    48,697
     
    Fully taxable equivalent adjustment 112   103   99   105   94   314  277 
    Fully taxable equivalent net interest income (non-GAAP)$19,102  $17,744  $16,776  $16,997  $16,926  $53,622 $48,974 
    Non-interest income (GAAP)$5,036  $5,319  $5,663  $5,787  $5,970  $16,018 $18,083 
    Less: net (gains) losses on security transactions                   
    Adjusted non-interest income (non-GAAP)$5,036  $5,319  $5,663  $5,787  $5,970  $16,018 $18,083 
    Non-interest expense (GAAP)$14,577  $14,342  $14,668  $14,378  $14,100  $43,587 $41,304 
    Less: amortization of intangible assets    (4)  (11)  (11)  (42)  (15) (232)
    Adjusted non-interest expense (non-GAAP)$14,577  $14,338  $14,657  $14,367  $14,058  $43,572 $41,072 
    Efficiency ratio (unadjusted) 60.67%  62.47%  65.66%  63.40%  61.84%  62.87% 61.85%
    Efficiency ratio (adjusted) 60.40%  62.17%  65.32%  63.11%  61.40%  62.57% 61.25%
    Tangible Equity and Tangible Assets (Period-End)            

    Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.       

     
    As of or for the Three Months Ended
     As of or for the
    Nine Months Ended


    (in thousands, except per share and ratio data)
    Sept. 30,
    2022
    June 30,
    2022
    March 31,
    2022
    Dec. 31,
    2021
    Sept. 30,
    2021
     Sept. 30,
    2022
    Sept. 30,
    2021
    TANGIBLE EQUITY AND TANGIBLE ASSETS        
    (PERIOD END)

    Total shareholders' equity (GAAP)


    $


    155,519
     

    $


    174,690
     

    $


    185,510
     

    $


    211,455
     

    $


    206,139
      

    $


    155,519
     

    $


    206,139
     
    Less: intangible assets (21,824) (21,824) (21,828) (21,839) (21,850)  (21,824) (21,850)
    Tangible equity (non-GAAP)$133,695 $152,866 $163,682 $189,616 $184,289  $133,695 $184,289 


    Total assets (GAAP)


    $


    2,551,418
     

    $


    2,449,911
     

    $


    2,474,895
     

    $


    2,418,475
     

    $


    2,417,656
      

    $


    2,551,418
     

    $


    2,417,656
     
    Less: intangible assets (21,824) (21,824) (21,828) (21,839) (21,850)  (21,824) (21,850)
    Tangible assets (non-GAAP)$2,529,594 $2,428,087 $2,453,067 $2,396,636 $2,395,806  $2,529,594 $2,395,806 


    Total equity to total assets at end of period (GAAP)
     

    6.10


    %
     

    7.13


    %
     

    7.50


    %
     

    8.74


    %
     

    8.53


    %
      

    6.10


    %
     

    8.53


    %
    Book value per share (GAAP)$33.14 $37.24 $39.56 $45.09 $44.00  $33.14 $44.00 
    Tangible equity to tangible assets at end of period (non-GAAP) 5.29% 
    6.30
    % 
    6.67
    % 7.91% 7.69



    %
      5.29% 
    7.69
    %
    Tangible book value per share (non-GAAP)$28.49 $32.59 $34.91 $40.44 $39.34  $28.49 $39.34 


    Tangible Equity (Average)

    Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.        

     As of or for the Three Months Ended
     As of or for the
    Nine Months Ended

    (in thousands, except ratio data)Sept. 30,
    2022
    June 30,
    2022
    March 31,
    2022
    Dec. 31,
    2021
    Sept. 30,
    2021
     Sept. 30,
    2022
    Sept. 30,
    2021
    TANGIBLE EQUITY (AVERAGE)

    Total average shareholders' equity (GAAP)


    $


    180,631
     

    $


    178,207
     

    $


    203,613
     

    $


    208,147
     

    $


    208,023
      

    $


    187,409
     

    $


    202,923
     
    Less: average intangible assets (21,824) (21,825) (21,835) (21,845) (21,868)  (21,828) (21,952)
    Average tangible equity (non-GAAP)$158,807 $156,382 $181,778 $186,302 $186,155  $165,581 $180,971 


    Return on average equity (GAAP)
     

    14.17


    %
     

    18.06


    %
     

    13.68


    %
     

    12.30


    %
     

    12.68


    %


    15.23


    %
     

    13.16


    %
    Return on average tangible equity (non-GAAP) 16.12% 20.58% 15.32% 13.74% 14.16%17.23% 14.75%

    Adjustments for Certain Items of Income or Expense

    In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.

     As of or for the Three Months Ended
     As of or for the
    Nine Months Ended

    (in thousands, except per share and ratio data)Sept. 30,
    2022
     June 30,
    2022
     March 31,
    2022
     Dec. 31,
    2021
     Sept. 30,
    2021
     Sept. 30,
    2022
    Sept. 30,
    2021
    NON-GAAP NET INCOME

    Reported net income (GAAP)


    $


    6,453
      

    $


    8,024
      

    $


    6,867
      

    $


    6,454
      

    $


    6,646
      

    $


    21,344
     

    $


    19,971
     
    Net (gains) losses on security transactions (net of tax)                   
    Net income (non-GAAP)$6,453  $8,024  $6,867  $6,454  $6,646  $21,344 $19,971 
    Average basic and diluted shares outstanding 4,692   4,690   4,689   4,682   4,678   4,691  4,683 
    Reported basic and diluted earnings per share (GAAP)$1.37  $1.72  $1.46  $1.38  $1.42  $4.55 $4.26 
    Reported return on average assets (GAAP) 1.02%  1.32%  1.14%  1.04%  1.09%  1.16% 1.11%
    Reported return on average equity (GAAP) 14.17%  18.06%  13.68%  12.30%  12.68%  15.23% 13.16%
    Basic and diluted earnings per share (non-GAAP)$1.37  $1.72  $1.46  $1.38  $1.42  $4.55 $4.26 
    Return on average assets (non-GAAP) 1.02%  1.32%  1.14%  1.04%  1.09%  1.16% 1.11%
    Return on average equity (non-GAAP) 14.17%  18.06%  13.68%  12.30%  12.68%  15.23% 13.16%

    Category: Financial

    Source: Chemung Financial Corp

    For further information contact:
    Karl F. Krebs, EVP and CFO
    kkrebs@chemungcanal.com
    Phone: 607-737-3714


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