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Chemung Financial Corporation

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FY2007 Annual Report · Chemung Financial Corporation
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Chemung Financial Corporation
Annual Report 2007

175 years of responsible banking

Our Mission & Vision

Mission

Vision 

The mission of Chemung Financial Corporation is to 

The vision of Chemung Financial Corporation is to be 

remain a strong and independent financial services 

a top performing community bank remaining true to 

organization creating value for shareholders, customers, 

our mission, and to become the company of choice for 

employees and the communities where the bank does 

customers, employees and investors. 

business, while maintaining the highest standards of 

business ethics. Chemung Canal is a community-

oriented, client-focused organization.

The photo on the cover is a reproduction of a painting of the Chemung 

Canal as it passes through the Village of Havana, NY (now Montour 

Falls.) This painting now hangs in the Montour Falls Memorial Library. 

The artist is unknown. The photograph was taken by Frank Borkowski.

The canal opened in 1833, the same year as the Bank, and was 

operational until 1878. During that time the Chemung Canal was one of 

the lateral canals in New York State providing access to the Erie Canal 

through the Cayuga and Seneca canals. It connected the Chemung River 

in Elmira to Seneca Lake in Watkins Glen.

Dividend Investment and Stock Purchase Plan

Registered shareholders of Chemung Financial 

Corporation, through the Dividend Investment and Stock 

Purchase Plan, may invest their dividends or make 

quarterly cash payments to purchase additional stock of 

the Corporation. Shareholders not enrolled in the plan 

may receive a descriptive brochure and authorization card 

for the plan upon written request to the Corporation’s 

secretary at the following address:

Chemung Financial Corporation
Attn: Corporate Secretary
P.O. Box 1522
Elmira, New York 14902-1522
www.chemungcanal.com

Form 10-K Annual Report

A copy of the Corporation’s Form 10-K Annual Report is 

available without charge to shareholders after March 31, 

2008 upon written request to the Corporation’s secretary. 

A copy is also available on the Securities and Exchange 

Commission’s website at www.sec.gov.

Annual Meeting

The Annual Meeting of Shareholders will be held on 

Wednesday, May 7, 2008 at 2:00pm at the downtown 

Holiday Inn, Elmira – Riverview.

Financial Highlights

(in thousands, except per share data)

Operating Results-Year Ended December 31
Net Interest Income
Provision for loan losses 
Non-interest income: 
   Securities gains, net 
   Trust & Investment Services Income 
   Other operating income
Other operating expense
Net income

At Year End:
Assets
Loans, net of deferred fees and costs, 
   and unearned income 
Allowance for loan losses 
Deposits
Shareholders’ equity
Employees (full time equivalent)

Share And Per Share Data:
Net income
Book value, at year end
Tangible book value, at year end
Dividends declared
Shares outstanding (average)

Ratios:
Allowance to total loans
Return on average assets 
Return on average Tier I Equity 

Trust Assets Under Administration
(Market Value)
as Fiduciary
as Custodian

Market Prices Of Chemung Financial Corporation
Stock During Past Three Years (Dollars)
1st Quarter
2nd Quarter 
3rd Quarter 
4th Quarter 

Dividends Paid Per Common Share By Chemung
Financial Corporation During Past Three Years
January 2
April 2 
July 2
October 1

2007
$     25,936
       1,255 

         10 
    6,345 
    10,274 
  30,520
    7,259

2006
$     24,546 
    125 

           27   
    4,901 
    9,384
  29,523
    6,589

$   788,874 

$   739,050

539,522
8,453
572,600
88,115
280

2.02
24.49
22.50
0.97
3,595

1.57% 
0.95% 
9.53%

$ 1,319,785
579,458
$1,899,243

2007
30.00 – 33.00
29.05 – 32.10
27.55 – 31.00
25.49 – 30.00

2007
0.24
0.24
0.24
0.24
0.96

477,664 
7,983 
585,092 
82,298
293

1.81 
22.78 
22.09
0.96
3,642

1.67% 
0.91% 
8.60% 

$   991,082 
492,317 
$1,483,399

2006
29.50 – 30.90
29.05 – 31.75 
29.40 – 32.00
31.00 – 33.75

2006
0.24
0.24
0.24
0.24
0.96

% of Change
  5.66% 
904.00% 

    -62.96% 
 29.46% 
 9.48%
   3.38% 
  10.17%

6.74% 

12.95% 
5.89% 
-2.14% 
7.07%
-4.44%

11.60% 
7.51%
1.86%
1.04%
-1.29%

33.17%
17.70% 
28.03%

2005
31.00 – 34.00
31.50 – 34.00 
30.50 – 32.50
29.65 – 31.50

2005
0.24
0.24
0.24
0.24
0.96

As of December 31, 2007 there were 573 registered holders of record of the Corporation’s stock. Chemung Financial Corporation common stock is inactively traded in the over-the-counter market.

The quarterly market price ranges for the Corporation’s stock for the past three (3) years are based upon actual transactions as reported by brokerage firms which maintain a market or conduct trades 
in the Corporation’s stock and other transactions known by the Corporation’s management.

 
 
 
 
 
 
 
 
 
To Our Shareholders

2007 was a very good year for Chemung Canal in spite of 
a challenging business climate for banking companies.  
Net income climbed to $7.3 million representing a 10.2% 
increase over 2006.  Earnings per share of $2.02 were 
11.6% greater than last year. With increased earnings, 
the dividend was increased $.01 per quarter bringing our 
annual dividend to $1.00 per share. Our return on average 
assets for 2007 was 0.95% and the return on average 
equity was 8.58%. These two measures were up from 2006 
levels of 0.91% and 8.11%, respectively. Many factors 
combined to deliver this earnings improvement.

Financial Results, Growth and Expansion  

This past year, we grew our company organically and 
through acquisition. It is particularly pleasing to see us 
grow the old fashioned way by getting new clients and 

taking great care of our existing clients. All of our 
loan portfolios experienced impressive growth. On 
average, our commercial loan portfolio grew $8 
million or 4.2% to nearly 
$200 million. Consumer loans averaged 
$171 million, an increase of nearly $27 million 
or 18.5%, while average mortgages increased 
approximately $36 million or 31.3% to 
$149 million. Equally impressive, our average 

demand deposits grew 4.8% to $146 million, while total 
average deposits climbed $24 million or 4.3% to nearly 
$593 million. These results were driven by better execution 
in seeking out new business, meeting the needs of existing 
clients and providing a level of service that distinguishes 
us from the competition. Our success in penetrating the 
Ithaca and Tompkins County markets also contributed 
significantly to our growth. We continue to be encouraged 
by our success in these new markets which have proven 
to be fertile ground for new loans. Our core business 
remains the building of loyal, profitable relationships with 
borrowers, depositors and investors so it is gratifying 
to see these results. Due to our strong deposit and loan 
growth, our net interest margin remained stable despite 
intense competition and an interest rate yield curve that 
is compressing margins for many banks. We also made 
good progress in recent years reducing the level of 
nonperforming assets. Strong asset quality is a major goal 
and we are pleased to report that noncurrent loans have 
returned to more normalized levels. Nonperforming loans 
at December 31, 2007 were $3.6 million or .66% of total 

loans, essentially unchanged from a year earlier but 
significantly lower than 2005 levels. Our allowance for 
loan and lease losses was a healthy 1.57% of loans at 
year end.   
    Another major goal is to grow noninterest income.  
Noninterest income comes from a variety of sources and 
showed strong improvement in 2007. Total noninterest 
income for the year was $16.6 million, an increase 
of $2.3 million or 16.2% over 2006. One factor that 
helped to produce higher levels of fee income was 
the growth in our checking account base. Another 
major contributor was the acquisition of the Partners 
trust business in May. In this transaction, we acquired 
nearly $350 million in trust assets and over 300 trust 
relationships. In connection with this acquisition, 
we established offices in downtown Binghamton 
and Herkimer. Total trust assets under management 
or administration now approximate $2 billion and 
generated in excess of $6 million in annual revenue.  
This past year, we asked our trust clients to rate us in 
a variety of areas and we are pleased to say they gave 
us high marks. Our disciplined approach to investing 
in high quality, large cap companies that consistently 
grow earnings and dividends delivered attractive returns 
for our clients. It is not easy going against the tide, 
but our discipline and philosophy of investing for the 
long-term has been rewarding for our clients. To meet 
the expanding needs of our clients, we are introducing 
an open architecture platform to give clients access to 
a broader array of professional money managers. The 
trust and investment management business is a core 
competency of Chemung Canal and we continue to look 
for opportunities to expand this line of business. 
    As of this writing, we expect to complete the 
acquisition and conversion of three branches of M&T 
Bank in March; two in Broome County and one in Tioga 
County. Specifically, we will be acquiring the Vestal 
office on Rano Blvd., the Johnson City branch in the 
Oakdale Mall and the Owego branch on Route 17C. 
In total, we anticipate acquiring approximately $70 
million in deposits, $15 million in loans and nearly 
8,000 accounts. We are excited about this acquisition 
as it expands our distribution network into a contiguous 
market that lacks a hometown community bank. We 
believe there are many individuals and businesses in the 
Binghamton market seeking a banking alternative and 
will value our brand of community banking.

Capital Management  

We continue to explore ways to use our excess capital to 
maximize shareholder value. We believe the acquisition 
of the Partners trust business, the three M&T branches 
and our share repurchase program are effective capital 
management strategies and will improve shareholder value.  
We continue to evaluate opportunities to use our excess 
capital effectively to maximize value for our shareholders.

CanalCare Service-–Our Competitive Advantage               

Last year, we created and implemented CanalCare.  
CanalCare embodies our service promise to both our 
external and internal clients. The implementation of 
this initiative stems from our strong belief that our only 
sustainable competitive advantage is the quality of 
our people and the service they provide. All 300 plus 
employees were trained in our service quality standards.  
Service quality metrics were established and tracked.  
Job descriptions were revised to reflect these standards.  
Employees are evaluated based on the quality of service 
they provide. CanalCare is becoming a part of the DNA 
and fabric of Chemung Canal—many clients value and 
appreciate our high-touch approach to banking; many 
more will. 

Corporate Responsibility

The news has been filled with stories about the subprime 
mortgage crisis and the losses taken by banks holding 
securities comprised of subprime and exotic mortgages.  
We are dismayed to learn about the many individuals and 
families who stand to lose their home because they were 
sold a subprime or exotic mortgage and cannot afford the 
mortgage payment when the rate resets. We believe that 
enabling people to borrow money they cannot repay is 
irresponsible. We have not, and will not, offer these types 
of mortgage products. We also want you to know that we 
do not hold any securities that are comprised of subprime 
mortgage loans.    

A Comment About Our Stock Price
As a result of the subprime mortgage crisis, financial 
stocks were hit particularly hard this past year and 
underperformed the market. It is not unusual for companies 
in an industry in crisis to be painted with the same brush. 
The KBW Bank Index, comprised of national and regional 
banking institutions, declined 25.2% in 2007. The smaller, 

community banking companies represented by the 
NASDAQ Bank Index were down 22.1%. Despite our 
strong results in 2007, Chemung Canal was off 12.5% 
during the same period. By way of comparison, the 
S&P 500 Index was up 3.5% for 2007. We believe our 
stock is undervalued which is one reason we have a 
share repurchase program in place and continue to 
buy back our shares. Based on our December 31, 2007 
closing price of $28.05, our current annual dividend of 
$1.00 per share (recently increased by $.01 per quarter) 
yields 3.6%, a very competitive return. We believe an 
investment in our company should be treated as a long 
term investment and, over time, our shareholders will 
be rewarded.   

Using New Technology to Become More Efficient       

Chemung Canal Trust Company is an organization that 
embraces change and new technologies to become 
more efficient and productive. We are not anxious to 
be the pioneer, but we will gladly adopt some proven 
practices. This past year, we installed a new system in 
our branches to process client transactions; we scan 
transactions and transmit digital images. This initiative 
has produced significant savings.

Investing in Our Future

To professionally serve our clients, we must keep our 
banking facilities contemporary. The long term project 
of upgrading our headquarters in Elmira is coming to 
a close and our Southport, Horseheads and Waverly 
offices were recently renovated and underwent a facelift.  
We will continue to upgrade our facilities as needed.  
With the warm reception we have received in Ithaca, we 
are planning to relocate our Community Corners branch 
to a free-standing building at the corner of Hanshaw and 
Pleasant Grove Road, a more highly visible site a short 
distance from our store front location. This office will be 
equipped with drive-up windows and a drive-up ATM.  
We also invest in our people and continue to provide 
professional growth and training opportunities.      

Product Development     

We are committed to meeting the changing needs 
of our clients. We recently introduced a “Remote 
Deposit Capture” product that greatly enhances client 
convenience—no need to come to the bank; just scan 

 
     
To Our Shareholders   (con’t)

our company organically, by entering new markets and 
by pursuing acquisitions; (2) become more efficient; (3) 
build a future management team; (4) make client service 
the hallmark of our success; and (5) continue to be a 
good corporate citizen. 
    In closing, we can tell you we know who we are and 
where we want to go. We have a clear vision of our future 
and a roadmap to get us there. We have the resources 
and the will to remain a strong, independent and 
successful community bank. In the face of unrelenting 
banking industry consolidation, we strongly believe 
in the need for a community bank and our business 
model of responsive, local decision making and highly 
personalized service is winning new clients everyday.  
Our three pillars of success—execution, prudent lending 
and great client service—are producing results. Our 
success is a direct result of the hard work and dedication 
of our staff and the valuable guidance and direction 
provided by our Board of Directors. We are grateful for 
their support and your commitment to our company.

Ronald M. Bentley
President & CEO 

David J. Dalrymple
Chairman of the Board

and send (basically using the same technology as branch 
remote capture).  We also introduced a “Business Equity 
Line of Credit” that allows our business clients to tap 
into the equity of their business properties for business 
purposes. With the advent of high deductible health 
plans, we created a Health Savings Account which has 
proved to be very popular. 

Corporate Citizenship

Chemung Canal Trust Company has a long history of 
supporting worthy causes in the communities where 
we do business. Indeed, hundreds of charitable and 
community organizations count on our financial help 
each year. Moreover, many of our employees devote 
many hours of their personal time to these organizations.  
We are proud of them and the leadership role they play 
in community organizations.

Retirements   

This year marks the retirement of Jan Updegraff who has 
served Chemung Canal Trust Company for 38 years. He 
served our company with distinction and provided strong 
leadership over the past decade as President and CEO.  
We are glad he will continue to serve on our Board of 
Directors. We are especially grateful for his assistance 
in making the leadership transition go very smoothly.  
Also, we wish to recognize the retirement of two long-
time employees, Joyce Murray and Carol Nolan, both of 
whom served our company for 20 years. We extend our 
best wishes to them in their retirement. 

Celebrating Our 175th Anniversary

This year we celebrate our 175th anniversary. We 
are proud of our long and rich history and we have 
planned many activities and events to commemorate 
this occasion. In this age of banking consolidation, how 
many can boast such a claim? We believe our clients 
value this longevity and stability, and we are planning to 
be here for a long time to come.  
    Going forward, we will continue to focus our energies 
on the five chief strategies we have identified to deliver 
consistent and sustainable earnings growth: (1) grow 

 
 
 
           
  
In Appreciation:           Jan Updegraff   

Board of Directors   

In January 2008, Jan P. Updegraff retired from the bank, 
after a career of nearly 38 years.
    Jan began working at Chemung Canal in February 
1970 after starting his banking career in 1967 at 
Merchants National Bank & Trust in Syracuse, NY. His 
career path entailed a number of executive positions 
at Chemung Canal including: Senior Trust Investment 
Officer, Executive Vice President and Chief Financial 
Officer. In February 1996, he was named President 
and Chief Operating Officer and in January 1998 was 
named President and Chief Executive Officer. In July 
2006, Mr. Updegraff was named Vice Chairman and 
Chief Executive Officer as part of the 
organization’s management succession 
program that named Ronald M. Bentley 
to the position of President and Chief 
Operating Officer.  
    Mr. Updegraff will continue to serve 
as a Director of Chemung Canal Trust 
Company and Chemung Financial 
Corporation, a position to which he was 
first appointed in 1996.
    Jan is truly the embodiment of what 
a Community Banker is all about. His 

extensive knowledge of banking and investment 
products, his recognition of the importance of quality 
customer service and his commitment to our community 
have helped shape a career at Chemung Canal that has 
generated positive results by all measures.

Robert E. Agan
Chairman Emeritus
Hardinge, Inc.

Ronald M. Bentley
President and Chief Executive Officer
Chemung Canal Trust Company & CFS Group, Inc.

David J. Dalrymple
Chairman of the Board
Chemung Canal Trust Company and
President
Dalrymple Holding Corporation

Robert H. Dalrymple
Vice President and Secretary
Dalrymple Holding Corporation

Clover M. Drinkwater
Partner
Sayles & Evans

William D. Eggers
Senior Counsel
Nixon, Peabody, LLP

Stephen M. Lounsberry III
President
Applied Technology Manufacturing

Thomas K. Meier
President
Elmira College

Ralph H. Meyer
President and Chief Executive Officer
Emeritus, Guthrie Healthcare System

John F. Potter
President
Seneca Beverage Corp.

Charles M. Streeter, Jr.
Retired President
Streeter Associates, Inc.

Richard W. Swan
Chairman of the Board
Swan and Sons-Morss Co., Inc.

Jan P. Updegraff
Vice Chairman
Chemung Canal Trust Company

 
Our History  

The following is a brief summary of some of the people 
and events that have helped shape our first 175 years.

1886  Matthias H. Arnot named Senior Partner.

April 9, 1833  NYS Senator John G. McDowell took 
the lead in the NYS Legislature passing 132 of laws of 
1833, Section One of which provided,“There shall be 
established in the Village of Elmira and County of Tioga, 
a bank to be called The Chemung Canal Bank.” The 
charter fixed the capital of the bank at $200,000, divided 
into four thousand shares of par of $50.00 each.

Tuesday, October 22, 1833  Chemung Canal Bank 
opened for business. John G. McDowell, first president, 
1833-1839. Assets during the year equalled $318,500.

John G. McDowell

First President of  Chemung Canal Bank

1833-1839

1834  After one year in temporary quarters, Chemung 
Canal Bank moved to 413-415 East Water St, which is 
now the Chemung Valley History Museum. 

1842-1843  John Arnot Sr. - The man that was to 
exercise the greatest individual influence was elected 
third president. He held that position for one year and 
then became cashier. In those days the cashier was 
practically the most closely associated with the bank 
and was a resident manager.

1857  John Arnot Sr. - returned as Sixth President. The 
Arnot family assumed private ownership of the bank for 
46 years.

February 17, 1865  Converted to a National Bank 
under the name of Chemung Canal National Bank of 
Elmira and operated as such until 1870, at which time 
reverted to state chartered status. 

1873  John Arnot Sr. died in 1873 at the age of 84. 
State Charter was surrendered and bank continued as a 
co-partnership, a private bank. Stephen T. Arnot named 
Senior Partner until his death in November of 1884.

1884-1886  John Arnot Jr. - Senior Partner. One 
morning in 1884 he was opening the doors of the vault 
and suddenly there was an explosion of gas that had 
accumulated over the weekend. These injuries and burns 
were so extensive that he was never again completely 
active in business. He died November 20, 1886.

March 9, 1895  Partnership terminated and state 
charter was acquired, the capital stock of the bank still 
being held by the Arnot family.

June 1902  Elmira Trust Company was organized by 
Matthias H. Arnot and Assoc.

March 2, 1903  Chemung Canal Trust Company 
became successor to the business of the Chemung 
Canal Bank and the Elmira Trust Company. Matthias H. 
Arnot elected President and held this position until 1910.
Full Trust Powers received.

1908  Assets during the year equalled $5.6 million.

December 1919  Edward J. Dunn elected President. 

December 13, 1920  Bank moved its main office to 
new location on corner of State and Water Street.

The Bank’s  second main office

State Street  @ Water Street

1920-1971

July 1925  Frederick W. Swan was elected president 
after Mr. Dunn retired. Mr. Swan had been a board 
member since 1908. Retired as President January 25, 
1950 and became Board Chairman until his death on 
December 21, 1955.

1933  Celebrated the bank’s 100th anniversary. Assets 
during the year equalled $12.6 million.

January 25, 1950  Clarence M. Brobst elected 
President.

December 1966  William E. Clark elected President.

1969  Former Chairman of the Board Clarence Brobst 
lifted the first spade of earth in the construction of a new 
Chemung Canal Trust Company main office.

 
August 30, 1971  Current Main office at One 
Chemung Canal Plaza opened.

January 1996  Jan P. Updegraff elected President and 
Chief Operating Officer. Mr. Bennett became Chairman of 
the Board and Chief Executive Officer.

One Chemung Canal Plaza

Opened 1971

June 1972  The 1972 flood hits the area with great 
force causing much suffering and disruption in the 
region. Six feet of water on the first floor of One 
Chemung Canal Plaza had the office closed for much 
of the summer. Many lunches were served by CCTC to 
workers who were trying to clean up their businesses in 
the downtown district. 

May 4, 1974  The Montour National Bank merged into 
Chemung Canal Trust Company.

October 21, 1974  Waverly Office located at 
405 Chemung Street, Waverly opened.

December 1976  Boyd McDowell II elected President 
after the retirement of William E. Clark. Mr. McDowell 
was the great, great grandson of John G. McDowell, the 
bank’s first president. 

July 23, 1978  The first annual Chemung Canal 
Elmira-Thon took place in downtown Elmira. The 
community event took place for 25 years. 

1983  Celebrated the bank’s 150th anniversary. Assets 
during the year equalled $185.8 million.

March 1985  Chemung Financial Corporation was 
formed and Chemung Canal Trust Company became a 
part of the one bank holding company.

April 22, 1985  Corning Office located at 149 West 
Market Street, Corning opened. 

May 1988   John W. Bennett elected President and 
Chief Operating Officer.

The Bank’s first insignia

January 1991  John W. Bennett elected President and 
Chief Executive Officer.

June 4, 1994  The bank acquired the former Columbia 
Banking Offices in Bath, Painted Post and Watkins Glen 
from the Resolution Trust Company.

January 3, 1995  The bank acquired the Owego 
National Bank located at 203 Main Street, Owego.

December 31,1996  Jan P. Updegraff elected 
President and Chief Executive Officer. Mr. Bennett 
continued as Chairman of the Board.

September 10, 2001  CFS GROUP, Inc. opened and 
becomes part of the holding company of Chemung 
Financial Corporation.

October 13, 2005  The Greater Binghamton 
Representative Office opened at 2520 Vestal Parkway, 
Vestal.

November 4, 2005  The Community Corners Office 
opened at 903 Hanshaw Road, Ithaca.

May 22, 2006  The Station Office opened at 806 West 
Buffalo Street, Ithaca.

July 7, 2006  David J. Dalrymple was elected 
Chairman of the Board, Mr. Updegraff elected Vice Chair 
and Chief Executive Officer, and Ronald M. Bentley was 
elected President and Chief Operating Officer. 

April 18, 2007  Ronald M. Bentley was elected 
President and Chief Executive Officer.

May 3, 2007  Chemung Canal Trust Company, the 
subsidiary bank of Chemung Financial Corporation, 
finalized the acquisition of the trust department assets of 
Partners Trust Financial Group, Inc.

September 2007  Chemung Canal Trust Company 
open up a new office at 127 Court Street, Binghamton. 
At that time they closed the Vestal Parkway office.

December 3, 2007  Chemung Canal Trust Company 
entered into an agreement with Manufacturers and 
Traders Trust Company (M&T Bank) to purchase branch 
offices located at the Oakdale Mall in Johnson City, 
Rano Blvd. in Vestal and 1054 Route 17C in Owego.

 
Company Progress

Acquisition of Partners Bank Trust Assets

Purchase of Three M&T Bank Offices

In May of 2007, we welcomed the clients from Partners 
Bank Trust Department to Chemung Canal. Now, 
with nearly $2 billion in assets under management 
or administration, a team of highly qualified trust and 
investment professionals and our commitment to 
providing exemplary client service, we are confident 
we can bring added value to these relationships. As 
part of the acquisition, Chemung Canal opened a 
Representative Office in Herkimer, NY at 219 North 
Prospect St. Combined with preexisting assets under 
management, ours is now one of the largest community 
bank trust and investment management operations in 
New York State.

New Binghamton Office 

Our new downtown Binghamton office at 127 Court 

Street opened last September to accommodate the 

continued significant growth in staff and trust assets 

under administration prompted by the purchase of 

the trust assets of Partners Trust Bank. The new office 

replaces our former location on the Vestal Parkway. 

This office specializes in serving the newly acquired 

Binghamton area trust clients as well as the professional 

and business community in the greater Binghamton 

area. Seven employees operate out of the Court Street 

office, compared to only two employees when Chemung 

Canal opened the Vestal office in October of 2005. The 

Binghamton office is led by Douglas R. Johnson, CCTC 

Senior Vice President and Regional Trust Executive. Mr. 

Johnson joined Chemung Canal in May as part of the 

trust asset acquisition from Partners Trust Bank.

At the close of 2007, Chemung Canal announced 

the purchase of three M&T Bank offices located in 
Johnson City, Vestal and Owego, New York. As part 
of the transaction, Chemung Canal will acquire nearly 
$70 million in deposits and $15 million in loans. The 
transaction, which is subject to regulatory approval, 
is expected to close in the first quarter of 2008. The 
locations purchased by Chemung Canal include: the 
Oakdale Mall Office in Johnson City, the Rano Blvd. 
location in Vestal and the Rt. 17C office in Owego.  
Chemung Canal expects to retain all of the employees 
currently working in these branch offices.  
    As a full service community bank, we can offer our 
newest customers a menu of products and services they 
require to achieve their financial goals.

Community Commitment

As our company expands into new markets and 
communities, our charitable citizenship accompanies us. 
In 2007, Chemung Canal provided financial support for 
the following organizations, as well as many others:

171 Cedar Arts
Arnot Art Museum
Arnot Ogden Medical Center
Better Housing of Tompkins County
Catholic Charities of Tompkins County
Cayuga Medical Center
Corning Community College
Elmira College
Habitat for Humanity
John W. Jones Museum
Pro Action of Chemung County
Saint Joseph’s Hospital Foundation
The Clemens Center
The Red Cross
Twin Tier Coalition of Learning
United Health Services of Broome County
United Way

Giving back to the communities we serve is good for 
the people who live there, our customers, friends and 
shareholders.

Chemung Canal Trust Company & CFS Group, Inc. Officers

EXECUTIVE MANAGEMENT TEAM
Jan P. Updegraff*
Vice Chairman

Ronald M. Bentley
President & Chief Executive Officer

John R. Battersby, Jr.
Executive Vice President, Chief Financial 
Officer & Treasurer

James E. Corey III
Executive Vice President
CanalCare Executive

Melinda A. Sartori
Executive Vice President
Trust & Investment Services

Jane H. Adamy
Senior Vice President 
Corporate Secretary & Trust Compliance

Richard G. Carr
Senior Vice President
Business Client Services

Michael J. Crimmins
Senior Vice President
Support Services

Louis C. DiFabio
Senior Vice President
Retail Client Services

Linda M. Struble
Senior Vice President
Human Resources

Norman R. Ward
Senior Vice President & Auditor

Michael J. Wayne
Vice President
Director of Marketing

SENIOR VICE PRESIDENTS
Elizabeth T. Dalrymple
Senior Vice President
Trust & Estate Administration

Douglas R. Johnson
Senior Vice President
Regional Trust Executive

Thomas J. Whitaker
Senior Vice President
Finance 

Thomas W. Wirth, CFA
Senior Vice President
Trust Investment Services

VICE PRESIDENTS
Deborah A. Adams
Vice President
Compliance & CRA Officer

Joseph W. Ahern
Vice President
Regional Trust Officer

Yvonne L. Albee
Vice President 
Trust Operations

Ronald E. Allison
Vice President
Community Relations

Judy L. Barton
Vice President
Bank Operations

Douglas F. Bissonette
Vice President
Trust & Estate Administration

Michael D. Blatt, CFA
Vice President
Trust Investment Services

Rose J. Catalano-Ilg
Vice President
Corporate Architect

Larry G. Denniston
Vice President
Regional Investment Officer

Leslie J. Distin
Vice President
Regional Trust Officer

Daniel R. Donovan 
Vice President
Consumer Loans

Lucimar Foo-Siam Escudero
Vice President 
Loan Review

Alex A. Gilliam
Vice President
Business Development

Marianne T. Kalec
Vice President
Real Estate Lending

Pamela A. Kelley
Vice President
Regional Trust Officer

Celeste D. Knickerbocker
Vice President
Finance

John E. Kravec
Vice President 
BSA/AML Officer

Ronald W. Lesch
Vice President
Regional Commercial Loan Executive

Christopher B. Loughridge
Vice President
Trust Investment Services 

Audrey Manchester
Vice President
Tri-County Regional Manager

Joseph H. Perry
Vice President
Ithaca Region

Robert M. Pichette
Vice President
Commercial Loan Manager

James D. Ripley
Vice President
Logistical Support

Robert A. Roemmelt, Jr.
Vice President
Arnot Road Office

Larry W. Rudawsky
Vice President
Retirement Services Group

Craig B. Heffner
Assistant Vice President
Commercial Lending 

Scott T. Heffner
Assistant Vice President
Marketing 

Megan B. Horton
Assistant Vice President
Owego Office

Mary L. Keefe
Assistant Vice President
e-Business Services

Matthew T. Keefe
Assistant Vice President
Information Technology

Michael S. Lares
Assistant Vice President
Trust Investment Services

Sandra J. Martinichio
Assistant Vice President
Trust Tax Services

John J. Sentigar
Vice President
Information Technology Manager

Eileen M. McCarthy
Assistant Vice President
Trust & Investment Administrative Services

Jacqueline L. Stevens
Vice President
Chemung County Regional Manager

Brendan P. McCormick, CFP
Assistant Vice President
Commercial Credit

ASSISTANT VICE PRESIDENTS
Michael J. Battersby
Assistant Vice President 
Horseheads Office

Nancy J. Battersby
Assistant Vice President
Trust & Estate Administration

Pamela D. Burns
Assistant Vice President
Human Resources

Richard W. Carroll
Assistant Vice President
Montour Falls Office

Gary K. Earley
Assistant Vice President
Trust & Estate Administration

Christopher J. Giammichele
Assistant Vice President
Commercial Lending

Jeffrey L. Greuber
Assistant Vice President
Commercial Lending

Sandra L. Grooms
Assistant Vice President
Ithaca Office

Tina M. McGurgan
Assistant Vice President
Information Technology

Kirsten A. Moore
Assistant Vice President 
Trust & Estate Administration

Joyce A. Murray*
Assistant Vice President
Deposit Operations

Mary Anne Narosky
Assistant Vice President
Business Client Services

Carol G. Nolan*
Assistant Vice President
Home Equity

Kerry L. Oetting, CPC, QPA, QKA
Assistant Vice President
Retirement Services Group

John J. Pribulick
Assistant Vice President
Business Credit Cards

Joan M. Smith
Assistant Vice President
Finance

Debra L. Stanton, CFSA
Assistant Vice President
Audit 

Theresa A. Wagner
Assistant Vice President
Deposit Operations 

David A. Wakeman
Assistant Vice President
Resource Recovery

Harris L. Weisman
Assistant Vice President
Information Security

ASSISTANT TREASURERS
Tina M. Bucci-Sabina
Assistant Treasurer
Real Estate Lending

Donna M. Coles
Assistant Treasurer
Elmira Heights Office

Linda Confer
Assistant Treasurer
Watkins Glen Office

Alison J. DeVita
Assistant Treasurer
Waverly Office

Karen A. Dimmick
Assistant Treasurer
Bath Office

Constance L. English
Assistant Treasurer
Corning Office

Debra A. Newcomer
Assistant Treasurer
Southport Office

Sheryl J. Scott
Assistant Treasurer
Big Flats Office

Jennifer Sczepanski
Assistant Treasurer
Community Corners Office

Jean A. Wise
Assistant Treasurer
Painted Post Office

Joan M. Wittig-Smith,
CFSA, CFAP
Assistant Treasurer
Audit

CFS GROUP, INC.
Suzann M. Koehler
Vice President

*Retired 12/31/07

Office Locations 

Main Office: One Chemung Canal Plaza, Elmira

Bath: 410 W. Morris St.

Big Flats: 437 Maple St.

Binghamton Office: 127 Court St.*

Corning: 149 W. Market St.

Elmira: 628 W. Church St.

Elmira Heights: 100 W. McCann’s Blvd.

Herkimer: 219 N. Prospect St.*

Horseheads: 602 S. Main St.

Horseheads: 29 Arnot Rd.

Ithaca: The Station, 806 W. Buffalo St.

Ithaca: Community Corners, 903 Hanshaw Rd.

Johnson City: Oakdale Mall, 601-635 Harry L. Dr.**

Montour Falls: 303 W. Main St.

Owego: 203 Main St.

Owego: 1054 State Route 17C**

Painted Post: 243 N. Hamilton St.

Southport: 951 Pennsylvania Ave., Elmira

Vestal: 100 Rano Blvd.**

Watkins Glen: 318 N. Franklin St.

Waverly: 405 Chemung St.

General Information:  607-737-3711 • 800-836-3711

All locations, except Trust & Investment offices, offer 24-hour 
ATM services. For office hours and a list of all Chemung Canal Trust 
Company ATMs, please visit our website at chemungcanal.com.

* Trust & Investment Office

** Effective March, 2008

Member FDIC  

        chemungcanal.com