• Chemung Financial Corporation Reports Third Quarter 2021 Net Income of $6.6 million, or $1.42 per Share

    Источник: Nasdaq GlobeNewswire / 21 окт 2021 18:42:51   America/Chicago

    ELMIRA, N.Y, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $6.6 million, or $1.42 per share, for the third quarter of 2021, compared to $5.7 million, or $1.19 per share, for the third quarter of 2020.

    "I am pleased to report another strong quarter of financial results for Chemung Financial Corporation, with earnings per share of $1.42,” said Anders M. Tomson, President and CEO. “Our company’s continued organic growth in core deposits, loans, and interest-earning assets contributed to these positive third quarter results, along with significant contributions from our Wealth Management Group and CFS Group, Inc. Additionally, the strength of our balance sheet continues to position us well for the future, and we are encouraged by the recent trend of decreasing non-performing loan balances,” Tomson added.

    Third Quarter Highlights1:

    • Deposits1 increased $136.0 million, or 6.7%.
       
    • Non-performing loans decreased from $8.6 million as of June 30, 2021 to $8.4 million as of September 30, 2021, representing 0.56% of total loans.
       
    • Book Value per share increased 1.0% from $43.57 per share as of June 30, 2021, to $44.00 per share as of September 30, 2021.
       
    • Tangible Book Value2 per share increased 1.1% from $38.90 per share as of June 30, 2021, to $39.34 per share as of September 30, 2021.
       
    • Dividends declared during the quarter were $0.31 per share.

    1 Balance sheet comparisons are calculated as of September 30, 2021 versus December 31, 2020.
    2 See GAAP to Non-GAAP Reconciliations, included within.

    3rd Quarter 2021 vs 3rd Quarter 2020

    Net Interest Income:

    Net interest income for the third quarter of 2021 totaled $16.8 million compared to $15.9 million for the same period in the prior year, an increase of $0.9 million, or 6.1%, due primarily to an increase of $1.2 million in interest and dividend income on taxable securities, offset by decreases of $0.2 million in interest income on loans, including fees, and $0.1 million in interest income on interest-earning deposits.

    The increase in interest and dividend income on taxable securities was due primarily to an increase in average invested balances of $379.8 million and the one-time recognition of $0.5 million related to a prepayment penalty on a mortgage- backed security investment. The decrease in interest income on loans, including fees was due primarily to a decrease in average balances on consumer and commercial loans and decreases in the consumer and mortgage loan portfolios average yield due to a decrease in interest rates. The decrease in interest income on interest-earning deposits was due primarily to the drop in interest rates on overnight deposits with the average yield on interest-earning deposits declining from 0.31% in the third quarter of 2020 to 0.17% in the third quarter of 2021, and a decrease of $41.9 million in the average balance of interest-earning deposits in the third quarter of 2021 when compared to the same period in the prior year.

    Fully taxable equivalent net interest margin was 2.88% for the third quarter 2021, compared to 3.20% for the same period in the prior year. Average interest-earning assets increased $341.8 million for the three months ended September 30, 2021 compared to the same period in the prior year. The average yield on interest-earning assets decreased 35 basis points to 3.02%, while the average cost of interest-bearing liabilities decreased five basis points to 0.22%, for the three months ended September 30, 2021 compared to the same period in the prior year.

    Non-Interest Income:

    Non-interest income for the three months ended September 30, 2021 was $6.0 million compared to $5.3 million for the same period in the prior year, an increase of $0.7 million, or 11.8%. The increase in the current quarter was due primarily to increases of $0.3 million in wealth management group fee income, $0.2 million in interchange revenue from debit card transactions, $0.1 million in service charges on deposit accounts, $0.2 million in CFS Group revenue primarily due to increased business, and a $0.1 million gain on the sale of real estate property associated with a branch closure in 2019. These increases were offset by a decrease of $0.3 million in net gains on sales of residential mortgage loans sold into the secondary market, as compared to the same period in the prior year. The increase in wealth management group fee income was primarily attributed to new business relationships and an increase in the market value of total assets under management or administration. The increase in interchange revenue from debit card transactions in the current quarter was primarily attributable to an increase in consumer spending when compared to the same period in the prior year. 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 2021 was $14.1 million compared to $13.4 million for the same period in the prior year, an increase of $0.7 million, or 5.5%. The increase can be mostly attributed to decreased spending in the prior year due to the worldwide pandemic, resulting in increases in most non-interest expense categories in the current quarter. Data processing expenses increased $0.4 million primarily due to investment in new initiatives during the current quarter, and a $0.2 million credit received in the same quarter of the prior year. Pension and other employee benefits increased
    $0.3 million primarily due to an increase in healthcare costs when compared to the same quarter in the prior year.

    Income Tax Expense:

    Income tax expense for the third quarter of 2021 was $1.7 million compared to $1.5 million for the same period in the prior year, an increase of $0.2 million. The effective tax rate for the current quarter increased to 20.4% compared to 20.3% for the same period in the prior year. The increase in income tax expense was primarily due to an increase in pretax income.

    3rd Quarter 2021 vs 2nd Quarter 2021

    Net Interest Income:

    Net interest income for the third quarter of 2021 totaled $16.8 million compared to $16.1 million for the prior quarter, an increase of $0.7 million, or 4.7%, due primarily to an increase of $0.7 million in interest and dividend income on taxable securities, and a decrease of $0.1 million in total interest expense on deposits.

    The increase in interest and dividend income on taxable securities can be primarily attributed to an increase in average invested balances of $51.4 million in the third quarter of 2021 as compared to the prior quarter and the one-time recognition of $0.5 million related to a prepayment penalty on a mortgage-backed security investment in the current quarter. The decrease in interest expense on deposits was primarily due to decreases in average interest rates paid on interest-bearing checking, savings and money market products.

    Interest income and fees from loans remained consistent when compared to the prior quarter as a $66.9 million decrease in total average loan balances was offset by a 12 basis point increase in total loan portfolio average yield due to the accelerated recognition of PPP fees. The Corporation recorded $1.2 million of PPP fees in the third quarter of 2021, of which $0.9 million represented accelerated recognition of fees related to SBA loan forgiveness of $71.6 million in loan balances. In the second quarter of 2021, $1.0 million of PPP fees were recorded, of which $0.5 million represented accelerated recognition of fees related to SBA loan forgiveness of $54.5 million in loan balances.

    Fully taxable equivalent net interest margin was 2.88% in the current quarter compared to 2.76% in the prior quarter. Average interest-earning assets decreased $25.1 million in the current quarter compared to the prior quarter, and the average yield on interest-earning assets increased 12 basis points from 2.90% in the prior quarter to 3.02% in the current quarter.

    The Corporation continues to closely monitor the loan portfolio for effects related to the COVID-19 pandemic. Changes in governmental policies during the pandemic placed stress on certain industries while other industries initially anticipated to be highly impacted by the pandemic demonstrated resilience. As a result, the Corporation continually evaluates various qualitative factors used to calculate the provision. As of September 30, 2021, a $2.4 million pandemic related provision remains as part of the allowance.

    Non-Interest Income:

    Non-interest income for the third quarter of 2021 was $6.0 million compared to $6.5 million for the prior quarter, a decrease of $0.5 million, or 8.0%. The decrease was mostly attributed to a $0.7 million one-time refund of real estate, sales tax and Mastercard incentives received in the second quarter of 2021, offset by $0.1 million of additional one-time property and sales tax refunds received in the third quarter, and an increase of $0.1 million in CFS revenue in the current quarter.

    Non-Interest Expense:

    Non-interest expense for the third quarter of 2021 was $14.1 million compared to $13.9 million for the prior quarter, an increase of $0.2 million, or 1.8%. The increase can be mostly attributed to increases of $0.2 million in salaries and wages and $0.2 million in data processing expenses, offset by a decrease of $0.1 million in marketing and advertising expense. The increase in salaries and wage expense was primarily attributed to seasonal hiring in the third quarter of 2021 when compared to the prior quarter. The increase in data processing expenses and decrease in marketing and advertising expenses was primarily due to the timing of various projects when compared to the prior quarter.

    Income Tax Expense:

    Income tax expense for the third quarter of 2021 was $1.7 million compared to $2.1 million for the prior quarter, a decrease of $0.4 million in income tax expense. The effective tax rate for the current quarter decreased to 20.4% compared to 23.4% in the prior period.

    Asset Quality

    Non-performing loans totaled $8.4 million at September 30, 2021, or 0.56% of total loans, compared to $10.0 million or 0.65% of total loans at December 31, 2020. Non-performing assets, which are comprised of non-performing loans and other real estate owned, were $8.5 million, or 0.35% of total assets, at September 30, 2021, compared to $10.2 million, or 0.45% of total assets, at December 31, 2020. The decrease in non-performing loans can mostly be attributed to payments received on non-performing loans across all loan portfolios. The decrease in non-performing assets can be primarily attributed to the decrease 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 continues to evaluate the potential impact of the COVID-19 pandemic as it relates to the loan portfolio. As part of this analysis, management identified what it believes to be higher risk loans through a detailed analysis of industry codes. During 2020, management increased certain allowance qualitative factors based on its assessment of the impact of the current pandemic on local, national, and global economic conditions as well as the perceived risks inherent in specific industries and credit characteristics. Based on this approach, the Corporation adjusted the COVID-19 pandemic specific provision for the third quarter of 2021. The total provision for loan losses was $0.4 million for the third quarter of 2021, primarily due to an increased allocation for impaired loans and loan downgrades primarily related to two commercial real estate loans. Net charge-offs for the third and second quarters of 2021 were each $0.1 million.

    The allowance for loan losses was $20.9 million at September 30, 2021 and December 31, 2020, respectively. The allowance for loan losses was 250.08% of non-performing loans at September 30, 2021 compared to 210.25% at December 31, 2020. The ratio of the allowance for loan losses to total loans was 1.38% at September 30, 2021 compared to 1.36% at December 31, 2020. The ratio of the allowance for loan losses to total loans excluding PPP loans was 1.45% at September 30, 2021. The Corporation continues to closely monitor the loan portfolio for effects related to the COVID-19 pandemic. Changes in governmental policies during the pandemic placed stress on certain industries while other industries initially anticipated to be highly impacted by the pandemic demonstrated resilience. Based upon management review of these factors, the pandemic-related portion of the allowance decreased $0.2 million during the third quarter of 2021 to $2.4 million as of September 30, 2021. To date the Corporation has released $1.9 million and utilized $0.5 million of the pandemic related provision.

    Under Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), "Temporary Relief from Troubled Debt Restructurings" loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 related modifications and therefore will not be treated as TDRs. The Consolidated Appropriations Act (CAA) signed in December, 2020 extended the provisions of Section 4013 to January 1, 2022.

    On June 17, 2020 the New York legislature passed, and Governor Cuomo signed, legislation which allows certain borrowers to extend the period of forbearance on a primary residence if financial hardship is demonstrated as a result of COVID-19. At its highest point as of May 31, 2020, total loan forbearances represented 15.77% of the Corporation's total loan portfolio. As of September 30, 2021, total loan forbearances represent 0.20% of the total loan portfolio.

    COVID-19 Loan Modifications Outstanding As Of
     June 30, 2020 Sept. 30, 2020 Dec. 31, 2020 March 31, 2021 June 30, 2021 Sept. 30, 2021
    ($ in millions)#
    Clients    		Total
    Loan
    Balance    		 #
    Clients    		Total
    Loan
    Balance    		 #
    Clients    		Total
    Loan
    Balance    		 
    #
    Clients    		Total
    Loan
    Balance    		 #
    Clients    		Total
    Loan
    Balance    		 #
    Clients    		Total
    Loan
    Balance
    Commercial172

    $167.7    		 

    31

    $43.3    		 

    13

    $19.8    		 

    22

    $25.2    		 

    19

    $20.3    		 

    5

    $2.9
    Retail and
    Residential    		457

    $18.0    		 

    43

    $2.5    		 

    18

    $1.0    		 

    16

    $1.1    		 

    5

    $0.2    		 

    6

    $0.1

    The above reflects the uncertain economic situation whereby the initial response by customers prompted a quick reaction to the unknown potential impact of COVID-19 on their business. Subsequently, customers may have reassessed their financial position prior to finalization of a modification, either modifying deferral requests or withdrawing the request altogether. In some cases, customers continued to make payments on modified loans.

    Balance Sheet Activity

    Total assets were $2.418 billion at September 30, 2021 compared to $2.279 billion at December 31, 2020, an increase of
    $138.2 million, or 6.1%. The increase can be mostly attributed to an increase of $206.9 million in securities available for sale, at estimated fair value, offset by decreases of $46.8 million in total cash and cash equivalents, and $19.8 million in loans, net of deferred origination fees and costs, and unearned income.

    The increase in securities available for sale can be mostly attributed to purchases of $333.4 million, offset by a decrease of $109.3 million in paydowns, and a decrease in the value of the portfolio of $12.7 million due to increases in interest rates. The decrease in loans, net of deferred loan fees, can mostly be attributed to decreases of $25.4 million in commercial loans and $9.0 million in consumer loans, offset by an increase of $14.6 million in residential mortgage loans. Year to date, PPP loans contributed a net decrease of $82.8 million to the total loan portfolio as of September 30, 2021 due to a total of $160.5 million of paydowns received from the SBA for loan forgiveness, offset by $77.7 million in new Phase 2 loans. The PPP loan program ended May 31, 2021 precluding further originations. The decrease in cash and cash equivalents was primarily due to changes in deposits, securities, and loans.

    Total liabilities were $2.212 billion at September 30, 2021 compared to $2.080 billion at December 31, 2020, an increase of $131.8 million, or 6.3%. The increase in total liabilities can primarily be attributed to an increase of $136.0 million, or 6.7% in deposits, offset by a decrease of $4.3 million in other liabilities. The increase in deposits was due primarily to increases of $54.7 million in consumer deposits, $48.5 million in commercial deposits, and $32.8 million in public deposits. The increase in deposits was partially attributed to the collection of stimulus checks and PPP loan disbursements. The decrease in other liabilities was due primarily to a decrease of $4.7 million in interest rate swap liabilities.

    Total shareholders’ equity was $206.1 million at September 30, 2021 compared to $199.7 million at December 31, 2020, an increase of $6.4 million, or 3.2%, primarily due to a $15.9 million increase in retained earnings, offset by a $9.5 million decrease in accumulated other income (loss). The increase in retained earnings was due primarily to net income of $20.0 million offset by $4.1 million in dividends declared. The decrease in accumulated other comprehensive income (loss) can mostly be attributed to a decrease in the fair market value of the securities portfolio. Treasury stock increased $0.4 million primarily due to the Corporation's common stock repurchase program, offset by the impact of the issuance of shares related to the Corporation's employee benefit plans and directors' stock plans.

    The total equity to total assets ratio was 8.53% at September 30, 2021 compared to 8.76% at December 31, 2020. The tangible equity to tangible assets ratio was 7.69% at September 30, 2021 compared to 7.87% at December 31, 2020. Book value per share increased to $44.00 at September 30, 2021 from $42.53 at December 31, 2020. As of September 30, 2021, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action.

    Other Items

    The market value of total assets under management or administration in our Wealth Management Group was $2.23 billion at September 30, 2021, including $322.5 million of assets under management or administration for the Corporation, compared to $2.091 billion at December 31, 2020, including $305.5 million of assets under management or administration for the Corporation, an increase of $138.0 million, or 6.60%. The increase in total assets under management or administration for the Corporation can be mostly attributed to new business relationships and an increase in the market value of the assets under management.

    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, 2021, a total of 26,456 shares of common stock at a total cost of $1.0 million were repurchased by the Corporation under its share repurchase program. The weighted average cost was $36.52 per share repurchased. Remaining buyback authority under the share repurchase program was 223,544 shares at September 30, 2021. No shares were repurchased during the third quarter of 2021.

    Chemung Financial COVID-19 Pandemic Update

    The Corporation continues to monitor the COVID-19 pandemic while following guidance from the Centers for Disease Control (CDC) and the Department of Health (DOH). With the increase in positivity rates due to the Delta variant during the last quarter, the Corporation quickly reinstituted several safety measures for our employees and customers, including mask-wearing, social distancing and sanitizing requirements. At this time, while all of our offices are open for business, two are operating through drive-up windows only, due to extremely high positivity rates in the market (Bradford, PA). Additionally, we continue our efforts to assist our customer base through the Forgiveness phase of the Small Business Administration's (SBA's) Paycheck Protection Program (PPP).

    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, FHLB advances, and other borrowings. As of September 30, 2021, the Corporation's cash and cash equivalents balance was $61.7 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, 2021, the Corporation's investment in securities available for sale was $761.5 million, $553.1 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 $187.3 million, as of September 30, 2021. The Corporation did not experience excessive draws on available working capital lines of credit and home equity lines of credit during the third quarter 2021 due to the COVID-19 crisis, nor has the Corporation experienced any significant or unusual activity related to customer reaction to the COVID-19 crisis that would create stress on the Corporation's liquidity position.

    With respect to the Corporation's credit risk and lending activities, management has taken actions to identify and assess additional possible credit exposure due to the changing environment caused by the COVID-19 crisis based upon the industry types within our current loan portfolio. Lending risks, as mentioned, are being monitored by industry, based upon NAICS code, with specific attention being paid to those industries that may experience greater stress during this time.

    The COVID-19 crisis is expected to continue to impact the Corporation's financial results, as well as demand for its services and products during the remainder of 2021. The short and long-term implications of the COVID-19 crisis, and related monetary and fiscal stimulus measures on the Corporation's future revenues, earnings results, allowance for loan losses, capital reserves, and liquidity are uncertain at this time.

    About Chemung Financial Corporation

    Chemung Financial Corporation is a $2.4 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, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, including the Dodd-Frank Act, and changes in general business and economic trends.

    As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following additional risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

    • demand for our products and services may decline, making it difficult to grow assets and income;
       
    • if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;
       
    • collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;
       
    • our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income;
       
    • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;
       
    • as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income;
       
    • a material decrease in net income over several quarters could result in a decrease in the rate of our quarterly cash dividend;
       
    • our cyber security risks are increased as the result of an increase in the number of employees working remotely;
       
    • we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us; and
       
    • FDIC premiums may increase if the agency experiences additional resolution costs.

    Information concerning these and other factors can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2020 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) 20212021202120202020
    ASSETS      
    Cash and due from financial institutions $28,859 $27,439 $30,602 $29,467 $35,327 
    Interest-earning deposits in other financial institutions  32,838  29,358  126,397  79,071  114,575 
    Total cash and cash equivalents  61,697  56,797  156,999  108,538  149,902 
                     
    Equity investments  2,933  2,856  2,718  2,542  2,291 
                     
    Securities available for sale  761,531  687,594  626,195  554,611  396,300 
    Securities held to maturity  3,183  2,981  2,453  2,469  3,047 
    FHLB and FRB stocks, at cost  3,562  3,562  3,164  3,150  3,150 
    Total investment securities  768,276  694,137  631,812  560,230  402,497 
                     
    Commercial  1,060,230  1,105,520  1,128,241  1,085,554  1,095,170 
    Mortgage  253,991  246,667  245,231  239,401  227,372 
    Consumer  202,447  205,812  207,477  211,508  215,951 
    Loans, net of deferred loan fees  1,516,668  1,557,999  1,580,949  1,536,463  1,538,493 
    Allowance for loan losses  (20,940) (20,676) (20,909) (20,924) (24,590)
    Loans, net  1,495,728  1,537,323  1,560,040  1,515,539  1,513,903 
                     
    Loans held for sale  224  —  295  170  2,059 
    Premises and equipment, net  18,370  19,094  19,541  20,119  20,891 
    Operating lease right-of-use assets  7,084  7,274  7,335  7,145  7,474 
    Goodwill  21,824  21,824  21,824  21,824  21,824 
    Other intangible assets, net  26  68  157  258  371 
    Accrued interest receivable and other assets  41,494  41,339  41,774  43,086  43,802 
    Total assets $2,417,656 $2,380,712 $2,442,495 $2,279,451 $2,165,014 
           
    LIABILITIES AND SHAREHOLDERS' EQUITY      
    Deposits:      
    Non-interest-bearing demand deposits $725,181 $674,205 $693,785 $620,423 $619,412 
    Interest-bearing demand deposits  282,036  276,250  285,934  282,172  270,949 
    Money market accounts  661,049  669,953  661,132  603,583  579,574 
    Savings deposits  275,137  276,496  270,778  245,865  248,751 
    Time deposits  230,419  241,283  298,752  285,731  205,503 
    Total deposits  2,173,822  2,138,187  2,210,381  2,037,774  1,924,189 
                     
    Advances and other debt  3,659  3,724  3,788  3,849  4,155 
    Operating lease liabilities  7,227  7,409  7,462  7,264  7,584 
    Accrued interest payable and other liabilities  26,809  27,415  26,080  30,865  32,081 
    Total liabilities  2,211,517  2,176,735  2,247,711  2,079,752  1,968,009 
           
    Shareholders' equity      
    Common stock  53  53  53  53  53 
    Additional-paid-in capital  47,203  47,081  47,025  46,764  46,892 
    Retained earnings  183,873  178,673  173,325  168,006  163,987 
    Treasury stock, at cost  (17,924) (17,972) (17,867) (17,525) (15,569)
    Accumulated other comprehensive income (loss)  (7,066) (3,858) (7,752) 2,401  1,642 
    Total shareholders' equity  206,139  203,977  194,784  199,699  197,005 
    Total liabilities and shareholders' equity $2,417,656 $2,380,712 $2,442,495 $2,279,451 $2,165,014 
                     
    Period-end shares outstanding  4,685  4,681  4,682  4,695  4,746 


    Chemung Financial Corporation               
    Consolidated Statements of Income (Unaudited)               
     Three Months Ended
    		  Nine Months Ended
    		 
     September 30,
    		Percent September 30,
    		Percent
    (in thousands, except per share data)20212020Change 20212020Change
    Interest and dividend income:

    Loans, including fees

    $

            14,655    		 

    $

            14,876    		 

    (1.5

    )    		 

    $

    43,964    		 

    $

    43,770    		 

    0.4    		 
    Taxable securities 2,678  1,474 81.7   6,431  4,358 47.6 
    Tax exempt securities 265  263 0.8   792  799 (0.9)
    Interest-earning deposits 35  101 (65.3)  131  643 (79.6)
    Total interest and dividend income 17,633  16,714 5.5   51,318  49,570 3.5 
                      
    Interest expense:                 
    Deposits 768  809 (5.1)  2,521  2,922 (13.7)
    Borrowed funds 33  36 (8.3)  100  126 (20.6)
    Total interest expense 801  845 (5.2)  2,621  3,048 (14.0)
                      
    Net interest income 16,832  15,869 6.1   48,697  46,522 4.7 
    Provision for loan losses 356  679 (47.6)  (53) 3,989 (101.3)
    Net interest income after provision for loan losses 16,476  15,190 8.5   48,750  42,533 14.6 
                      
    Non-interest income:                 
    Wealth management group fee income 2,765  2,416 14.4   8,246  6,968 18.3 
    Service charges on deposit accounts 856  740 15.7   2,305  2,294 0.5 
    Interchange revenue from debit card transactions 1,237  1,082 14.3   3,622  2,989 21.2 
    Change in fair value of equity investments 15  57 (73.7)  203  (33)N/M
    Net gains on sales of loans held for sale 242  553 (56.2)  884  916 (3.5)
    Net gains (losses) on sales of other real estate owned —  6 N/M  (18) (71)(74.6)
    Income from bank owned life insurance 12  14 (14.3)  39  147 (73.5)
    Other 843  471 79.0   2,802  1,940 44.4 
    Total non-interest income 5,970  5,339 11.8   18,083  15,150 19.4 
                      
    Non-interest expense:                 
    Salaries and wages 6,259  6,088 2.8   18,058  17,678 2.1 
    Pension and other employee benefits 1,511  1,245 21.4   4,450  4,095 8.7 
    Other components of net periodic pension and postretirement benefits (391) (254)53.9   (1,173) (762)53.9 
    Net occupancy 1,432  1,454 (1.5)  4,446  4,406 0.9 
    Furniture and equipment 409  538 (24.0)  1,185  1,573 (24.7)
    Data processing 2,210  1,777 24.4   6,261  5,630 11.2 
    Professional services 542  453 19.6   1,531  1,313 16.6 
    Amortization of intangible assets 42  120 (65.0)  232  371 (37.5)
    Marketing and advertising 162  140 15.7   572  546 4.8 
    Other real estate owned expense 7  53 (86.8)  24  87 (72.4)
    FDIC insurance 356  247 44.1   1,075  726 48.1 
    Loan expense 196  301 (34.9)  720  798 (9.8)
    Other 1,365  1,200 13.8   3,923  3,878 1.2 
    Total non-interest expense 14,100  13,362 5.5   41,304  40,339 2.4 
                      
    Income before income tax expense 8,346  7,167 16.5   25,529  17,344 47.2 
    Income tax expense 1,700  1,456 16.8   5,558  3,315 67.7 
    Net income$        6,646 $        5,711 16.4  $19,971 $14,029 42.4 
                    
    Basic and diluted earnings per share$1.42 $1.19   $4.26 $2.90  
    Cash dividends declared per share 0.31  0.26    0.88  0.78  
    Average basic and diluted shares outstanding 4,684  4,773    4,687  4,836  
            
    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,
    2021    		June 30,
    2021    		March 31,
    2021    		Dec. 31,
    2020    		Sept. 30,
    2020    		Sept. 30,
    2021    		 Sept. 30,
    2020
    RESULTS OF OPERATIONS

    Interest income    		 

    $

        17,633

    $

        16,945    		 

    $

        16,740    		 

    $

        17,337

    $

        16,714

    $

        51,318    		  

    $

        49,570
    Interest expense  801 866  954  940 845 2,621   3,048
    Net interest income  16,832 16,079  15,786  16,397 15,869 48,697   46,522
    Provision (credit) for loan losses  356 (150) (259) 250 679 (53)  3,989
    Net interest income after provision for loan losses  16,476 16,229  16,045  16,147 15,190 48,750   42,533
    Non-interest income  5,970 6,492  5,621  5,975 5,339 18,083   15,150
    Non-interest expense  14,100 13,851  13,353  15,597 13,362 41,304   40,339
    Income before income tax expense  8,346 8,870  8,313  6,525 7,167 25,529   17,344
    Income tax expense  1,700 2,075  1,783  1,292 1,456 5,558   3,315
    Net income$6,646$6,795 $6,530 $5,233$5,711$19,971  $14,029


    Basic and diluted earnings per share$        1.42 $        1.45 $        1.39 $        1.11 $        1.19 $        4.26 $        2.90 
    Average basic and diluted shares outstanding 4,684  4,683  4,691  4,702  4,773  4,687  4,836 
    PERFORMANCE RATIOS       
    Return on average assets 1.09% 1.11% 1.12% 0.93% 1.08% 1.11% 0.95%
    Return on average equity 12.68% 13.58% 13.24% 10.51% 11.56% 13.16% 9.74%
    Return on average tangible equity (a) 14.16% 15.25% 14.88% 11.84% 13.03% 14.75% 11.03%
    Efficiency ratio (unadjusted) (f) 61.84% 61.37% 62.38% 69.72% 63.00% 61.85% 65.41%
    Efficiency ratio (adjusted) (a) (b) 61.40% 60.72% 61.64% 68.94% 62.19% 61.25% 64.54%
    Non-interest expense to average assets 2.30% 2.27% 2.30% 2.76% 2.54% 2.29% 2.72%
    Loans to deposits 69.77% 72.87% 71.52% 75.40% 79.96% 69.77% 79.96%
    YIELDS / RATES - Fully Taxable Equivalent       
    Yield on loans 3.84% 3.72% 3.81% 3.96% 3.91% 3.79% 4.10%
    Yield on investments 1.49% 1.21% 1.28% 1.37% 1.61% 1.33% 1.78%
    Yield on interest-earning assets 3.02% 2.90% 3.03% 3.23% 3.37% 2.98% 3.54%
    Cost of interest-bearing deposits 0.21% 0.22% 0.25% 0.26% 0.26% 0.23% 0.33%
    Cost of borrowings 3.56% 3.64% 3.51% 3.52% 3.54% 3.57% 1.44%
    Cost of interest-bearing liabilities 0.22% 0.23% 0.26% 0.27% 0.27% 0.24% 0.34%
    Interest rate spread 2.80% 2.67% 2.77% 2.96% 3.10% 2.74% 3.20%
    Net interest margin, fully taxable equivalent 2.88% 2.76% 2.86% 3.06% 3.20% 2.83% 3.33%
    CAPITAL       
    Total equity to total assets at end of period 8.53% 8.57% 7.97% 8.76% 9.10% 8.53% 9.10%
    Tangible equity to tangible assets at end of period (a) 7.69% 7.72% 7.14% 7.87% 8.16% 7.69% 8.16%
    Book value per share$44.00 $43.57 $41.60 $42.53 $41.51 $44.00 $41.51 
    Tangible book value per share (a) 39.34  38.90  36.91  37.83  36.83  39.34  36.83 
    Period-end market value per share 45.30  44.31  41.82  33.95  28.87  45.30  28.87 
    Dividends declared per share 0.31  0.31  0.26  0.26  0.26  0.88  0.78 
    AVERAGE BALANCES
    Loans and loans held for sale (c)    		$1,519,264 $1,585,902 $1,557,368 $1,540,618 $1,515,762 $1,554,039 $1,427,716 
    Interest earning assets 2,327,817  2,352,908  2,251,334  2,144,891  1,986,043  2,310,968  1,877,966 
    Total assets 2,427,107  2,447,587  2,357,646  2,249,949  2,094,114  2,411,007  1,978,570 
    Deposits 2,181,517  2,210,413  2,117,963  2,009,211  1,853,557  2,170,198  1,739,744 
    Total equity 208,023  200,627  200,035  198,036  196,569  202,923  192,299 
    Tangible equity (a) 186,155  178,681  177,992  175,894  174,302  180,971  169,909 
    ASSET QUALITY
    Net charge-offs (recoveries)    		$        92 $        83 $        (244)$        3,915 $        219 $        (69)$        2,877 
    Non-performing loans (d) 8,373  8,583  9,327  9,952  15,726  8,373  15,726 
    Non-performing assets (e) 8,544  8,707  9,418  10,189  16,311  8,544  16,311 
    Allowance for loan losses 20,940  20,676  20,909  20,924  24,590  20,940  24,590 
    Annualized net charge-offs (recoveries) to average loans 0.02% 0.02% (0.06%) 1.01% 0.06% (0.01%) 0.27%
    Non-performing loans to total loans 0.56% 0.55% 0.59% 0.65% 1.02% 0.56% 1.02%
    Non-performing assets to total assets 0.35% 0.37% 0.39% 0.45% 0.75% 0.35% 0.75%
    Allowance for loan losses to total loans 1.38% 1.33% 1.32% 1.36% 1.60% 1.38% 1.60%
    Allowance for loan losses to total loans, net of PPP 1.45% 1.46% 1.50% 1.51% 1.82% 1.45% 1.82%
    Allowance for loan losses to non-performing loans 250.08% 240.89% 224.19% 210.25% 156.36% 250.08% 156.36%
    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, 2021
    		 Three Months Ended
    September 30, 2020
    		 Three Months Ended  
    September 30, 2021 vs. 2020
     Average
    Balance    		 InterestYield /
    Rate    		 Average
    Balance
    		 InterestYield /
    Rate    		Total
    Change    		 Due to
    Volume    		 Due to
    Rate
    (in thousands)
    Interest earning assets:
    Commercial loans$1,065,476  $10,656 3.97% $1,075,029  $10,575 3.91% $        81  $        (87) $168 
    Mortgage loans 249,651   2,086 3.32%  220,345   2,067 3.73%  19   260   (241)
    Consumer loans 204,137   1,944 3.78%  220,388   2,256 4.07%  (312)  (159)  (153)
    Taxable securities 681,160   2,678 1.56%  301,315   1,476 1.95%  1,202   1,549   (347)
    Tax-exempt securities 41,654   327 3.11%  41,372   325 3.13%  2   3   (1)
    Interest-earning deposits 85,739   36 0.17%  127,594   100 0.31%  (64)  (27)  (37)
    Total interest earning assets 2,327,817   17,727 3.02%  1,986,043   16,799 3.37%  928   1,539   (611)
    Non-interest earnings assets:
    Cash and due from banks    		 
    27,421    		      
    25,534    		         
    Other assets 92,719      106,907         
    Allowance for loan losses (20,850)     (24,370)        
    Total assets$2,427,107     $2,094,114         
    Interest-bearing liabilities:
    Interest-bearing checking
    $
    272,236    		  
    $
            52    		 
    0.08
    %    		 
    $
    253,278    		  
    $
            55    		 
    0.09
    %    		 
    $
            (3
    )    		 
    $
            4    		  
    $
            (7
    )
    Savings and money market 943,996   205 0.09%  791,004   231 0.12%  (26)  41   (67)
    Time deposits 236,062   511 0.86%  188,889   524 1.10%  (13)  115   (128)
    Long-term advances and other debt 3,681   33 3.56%  3,930   35 3.54%  (2)  (2)  — 
    Total int.-bearing liabilities 1,455,975   801 0.22%  1,237,101   845 0.27%  (44)  158   (202)


    Non-interest-bearing liabilities:    		             
    Demand deposits 729,223      620,386         
    Other liabilities 33,886      40,058         
    Total liabilities 2,219,084      1,897,545         
    Shareholders' equity 208,023      196,569         


    Total liabilities and shareholders' equity

    $

    2,427,107    		     

    $

    2,094,114    		         


    Fully taxable equivalent net interest income    		   

    16,926    		     

    15,954    		   

    $

            972    		  

    $

    1,381    		  

    $

    (409

    )
    Net interest rate spread (1)   2.80%   3.10%     
    Net interest margin, fully taxable equivalent (2)
    Taxable equivalent adjustment    		   

    (94

    )    		2.88%   

    (85

    )    		3.20%     
    Net interest income  $16,832    $15,869       

    (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, 2021
    		 Nine Months Ended
    September 30, 2020
    		 Nine Months Ended
    September 30, 2021 vs. 2020


    (in thousands)    		Average
    Balance

    Interest    		Yield /
    Rate    		 Average
    Balance

    Interest    		Yield /
    Rate    		 Total
    Change    		Due to
    Volume    		Due to
    Rate

    Interest earning assets:    		           
    Commercial loans$1,100,503 $31,741 3.86% $996,136 $30,926 4.15% $        815 $3,081 $(2,266)
    Mortgage loans 246,179  6,342 3.44%  203,692  5,762 3.78%  580  1,129  (549)
    Consumer loans 207,357  5,970 3.85%  227,888  7,150 4.19%  (1,180) (621) (559)
    Taxable securities 616,862  6,435 1.39%  270,348  4,361 2.15%  2,074  4,035  (1,961)
    Tax-exempt securities 41,401  976 3.15%  41,753  983 3.14%  (7) (10) 3 
    Interest-earning deposits 98,666  131 0.18%  138,149  643 0.62%  (512) (147) (365)
    Total interest earning assets 2,310,968  51,595 2.98%  1,877,966  49,825 3.54%  1,770  7,467  (5,697)


    Non-interest earnings assets:    		           
    Cash and due from banks 26,789     25,111       
    Other assets 94,323     100,276       
    Allowance for loan losses (21,073)    (24,783)      
    Total assets$2,411,007    $1,978,570       




    Interest-bearing liabilities:    		           
    Interest-bearing checking$282,970  $        174 0.08%$231,085  $        262 0.15%$        (88)$        50 $(138)
    Savings and money market 928,137   714 0.10% 774,706   1,000 0.17% (286) 171  (457)
    Time deposits 267,475   1,633 0.82% 173,556   1,660 1.28% (27) 701  (728)
    Long-term advances and other debt 3,745   100 3.57% 11,661   126 1.44% (26) (125) 99 
    Total int.-bearing liabilities 1,482,327   2,621 0.24% 1,191,008   3,048 0.34% (427) 797  (1,224)


    Non-interest-bearing liabilities:    		           
    Demand deposits 691,616     560,397       
    Other liabilities 34,141     34,866       
    Total liabilities 2,208,084     1,786,271       
    Shareholders' equity 202,923     192,299       
    Total liabilities and shareholders' equity$2,411,007    $1,978,570       


    Fully taxable equivalent net interest
    income    		   


    48,974    		     


    46,777    		  


    $


    2,197    		 


    $


    6,670    		 


    $


    (4,473


    )
    Net interest rate spread (1)   2.74%   3.20%   
    Net interest margin, fully taxable
    equivalent (2)    		   

    2.83

    %    		   

    3.33

    %    		   
    Taxable equivalent adjustment   (277)    (255)    
    Net interest income  $48,697    $46,522     

    (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

    As of or for the Three Months Ended        Nine Months Ended


    (in thousands, except ratio data)            		 Sept. 30,
    2021
    		 June 30,
    2021
    		 March 31,
    2021
    		 Dec. 31,
    2020
    		 Sept. 30,
    2020    		 Sept. 30,
    2021
    		 Sept. 30,
    2020


    NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT    		   
    Net interest income (GAAP) $        16,832  $        16,079  $        15,786  $        16,397  $        15,869  $48,697  $46,522 
    Fully taxable equivalent adjustment  94   92   91   89   85   277   255 
    Fully taxable equivalent net interest income (non-GAAP) $        16,926  $        16,171  $        15,877  $        16,486  $        15,954  $48,974  $46,777 

    Average interest-earning assets (GAAP)    		 
    $
    2,327,817    		  
    $
    2,352,908    		  
    $
    2,251,334    		  
    $
    2,144,891    		  
    $
    1,986,043    		  
    $
    2,310,968    		  
    $
    1,877,966    		 

    Net interest margin - fully taxable equivalent (non-GAAP)    		  
    2.88
    %    		  
    2.76
    %    		  
    2.86
    %    		  
    3.06
    %    		  
    3.20
    %    		  
    2.83
    %    		  
    3.33
    %


    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

    As of or for the Three Months Ended        Nine Months Ended



    (in thousands, except ratio data)    		Sept. 30,

    2021    		 June 30,

    2021    		 March 31,

    2021    		 Dec. 31,

    2020    		 Sept. 30,

    2020    		 Sept. 30,

    2021    		Sept. 30,

    2020
    EFFICIENCY RATIO
    Net interest income (GAAP)
    $
    16,832    		  
    $
    16,079    		  
    $
    15,786    		  
    $
    16,397    		  
    $
    15,869    		  
    $
    48,697    		  
    $
    46,522    		 
    Fully taxable equivalent adjustment 94   92   91   89   85   277   255 
    Fully taxable equivalent net interest income (non-GAAP)$16,926  $16,171  $15,877  $16,486  $15,954  $48,974  $46,777 
    Non-interest income (GAAP)$5,970  $6,492  $5,621  $5,975  $5,339  $18,083  $15,150 
    Less: net (gains) losses on security transactions —   —   —   —   —   —   — 
    Adjusted non-interest income (non-GAAP)$5,970  $6,492  $5,621  $5,975  $5,339  $18,083  $15,150 
    Non-interest expense (GAAP)$14,100  $13,851  $13,353  $15,597  $13,362  $41,304  $40,339 
    Less: amortization of intangible assets (42)  (89)  (101)  (113)  (120)  (232)  (371)
    Adjusted non-interest expense (non-GAAP)$14,058  $13,762  $13,252  $15,484  $13,242  $41,072  $39,968 
    Efficiency ratio (unadjusted) 61.84%  61.37%  62.38%  69.72%  63.00%  61.85%  65.41%
    Efficiency ratio (adjusted) 61.40%  60.72%  61.64%  68.94%  62.19%  61.25%  64.54%
    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,
    2021    		June 30,
    2021    		March 31,
    2021    		Dec. 31,
    2020    		Sept. 30,
    2020    		 Sept. 30,
    2021    		Sept. 30,
    2020
    TANGIBLE EQUITY AND TANGIBLE ASSETS        
    (PERIOD END)

    Total shareholders' equity (GAAP)

    $

    206,139    		 

    $

    203,977    		 

    $

    194,784    		 

    $

    199,699    		 

    $

    197,005    		  

    $

    206,139    		 

    $

    197,005    		 
    Less: intangible assets (21,850) (21,892) (21,981) (22,082) (22,195)  (21,850) (22,195)
    Tangible equity (non-GAAP)$184,289 $182,085 $172,803 $177,617 $174,810  $184,289 $174,810 


    Total assets (GAAP)

    $

    2,417,656    		 

    $

    2,380,712    		 

    $

    2,442,495    		 

    $

    2,279,451    		 

    $

    2,165,014    		  

    $

    2,417,656    		 

    $

    2,165,014    		 
    Less: intangible assets (21,850) (21,892) (21,981) (22,082) (22,195)  (21,850) (22,195)
    Tangible assets (non-GAAP)$2,395,806 $2,358,820 $2,420,514 $2,257,369 $2,142,819  $2,395,806 $2,142,819 


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

    8.53

    %    		 

    8.57

    %    		 

    7.97

    %    		 

    8.76

    %    		 

    9.10

    %    		  

    8.53

    %    		 

    9.10

    %
    Book value per share (GAAP)$        44.00 $        43.57 $        41.60 $        42.53 $        41.51  $        44.00 $        41.51 
    Tangible equity to tangible assets at end of period (non-GAAP) 7.69% 7.72% 7.14% 7.87% 
    8.16
    %    		  
    7.69
    %    		 
    8.16
    %
    Tangible book value per share (non-GAAP)$        39.34 $        38.90 $        36.91 $        37.83 $        36.83  $        39.34 $        36.83 


    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,
    2021    		June 30,
    2021    		March 31,
    2021    		Dec. 31,
    2020    		Sept. 30,
    2020    		 Sept. 30,
    2021    		Sept. 30,
    2020
    TANGIBLE EQUITY (AVERAGE)
    Total average shareholders' equity (GAAP)
    $
    208,023    		 
    $
    200,627    		 
    $
    200,035    		 
    $
    198,036    		 
    $
    196,569    		  
    $
    202,923    		 
    $
    192,299    		 
    Less: average intangible assets (21,868) (21,946) (22,043) (22,142) (22,267)  (21,952) (22,390)
    Average tangible equity (non-GAAP)$186,155 $178,681 $177,992 $175,894 $174,302  $180,971 $169,909 

    Return on average equity (GAAP)    		 
    12.68
    %    		 
    13.58
    %    		 
    13.24
    %    		 
    10.51
    %    		 
    11.56
    %
    13.16
    %    		 
    9.74
    %
    Return on average tangible equity (non-GAAP) 14.16% 15.25% 14.88% 11.84% 13.03%14.75% 11.03%

    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,
    2021    		 June 30,
    2021    		 March 31,
    2021    		 Dec. 31,
    2020    		 Sept. 30,
    2020    		 Sept. 30,
    2021    		Sept. 30,
    2020
    NON-GAAP NET INCOME

    Reported net income (GAAP)

    $

    6,646    		  

    $

    6,795    		  

    $

    6,530    		  

    $

    5,233    		  

    $

    5,711    		  

    $

    19,971    		 

    $

    14,029    		 
    Net (gains) losses on security transactions (net of tax)     —   —   —   —   —  — 
    Net income (non-GAAP)$6,646  $6,795  $6,530  $5,233  $5,711  $19,971 $14,029 
    Average basic and diluted shares outstanding 4,684   4,683   4,691   4,702   4,773   4,687  4,836 
    Reported basic and diluted earnings per share (GAAP)$1.42  $1.45  $1.39  $1.11  $1.19  $4.26 $2.90 
    Reported return on average assets (GAAP) 1.09%  1.11%  1.12%  0.93%  1.08%  1.11% 0.95%
    Reported return on average equity (GAAP) 12.68%  13.58%  13.24%  10.51%  11.56%  13.16% 9.74%
    Basic and diluted earnings per share (non-GAAP)$1.42  $1.45  $1.39  $1.11  $1.19  $4.26 $2.90 
    Return on average assets (non-GAAP) 1.09%  1.11%  1.12%  0.93%  1.08%  1.11% 0.95%
    Return on average equity (non-GAAP) 12.68%  13.58%  13.24%  10.51%  11.56%  13.16% 9.74%

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

    Category: Financial

    Source: Chemung Financial Corp


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