Chemung Financial
Corporation
Annual Report
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Bank Anywhere, Anytime.
ALBANY
132 State St., Albany
65 Wolf Rd., Albany
581 Loudon Rd., Latham
1365 New Scotland Rd., Slingerlands
BRADFORD
5 W. Main St., Canton
159 Canton St., Troy
BROOME
127 Court St., Binghamton
100 Rano Blvd., Vestal
CAYUGA
110 Genesee St., Auburn
185 Grant Ave., Auburn
CHEMUNG
One Chemung Canal Plaza, Elmira
628 W. Church St., Elmira
100 W. McCann’s Blvd., Elmira Heights
29 Arnot Rd., Horseheads
602 S. Main St., Horseheads
951 Pennsylvania Ave., Southport
CORTLAND
1094 Highway 222, Cortland
ERIE
9159 Main Street, Suite 1B, Clarence
SARATOGA
25 Park Ave., Clifton Park
3057 Route 50, Saratoga Springs
SCHENECTADY
2 Rush St., Schenectady
SCHUYLER
303 W. Main St., Montour Falls
318 N. Franklin St., Watkins Glen
SENECA
54 Fall St., Seneca Falls
STEUBEN
201 Bath Plaza, Bath
149 W. Market St., Corning
TIOGA
203 Main St., Owego
405 Chemung St., Waverly
TOMPKINS
909 Hanshaw Rd., Ithaca
304 Elmira Rd., Ithaca
806 W. Buffalo St., Ithaca
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Operating Results - Year Ended December 31:
2021
2020
% of Change
Financial Highlights
(in thousands, except per share data and employee count)
Net interest income
Provision for loan losses
Other operating income:
Wealth Management Group fee income
Other income
Other operating expenses
Income tax expense
Net income
At Year End:
Assets
Loans, net of deferred loan fees
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 for loan losses to total loans
Return on average assets
Return on average equity
Return on average tangible equity
Efficiency ratio (adjusted)
Trust Assets Under Administration (market value):
as Fiduciary
as Custodian
Common Stock Market Prices and Dividends
Paid During Past Two Years:
4.2%
(99.6)%
16.6%
10.0%
(0.5)%
59.2%
37.2%
6.1%
(1.2)%
0.5%
5.8%
5.9%
(1.2)%
40.6%
6.0%
6.9%
14.4%
(2.5)%
$65,589
17
11,072
12,798
55,682
$62,919
4,239
9,492
11,632
55,935
7,335
4,607
$26,425
$19,262
$2,418,475
1,518,249
21,025
2,155,433
211,455
337
$2,279,451
1,536,463
20,924
2,037,774
199,699
341
5.64
45.09
40.44
1.19
4,683
1.38%
1.09%
12.94%
14.49%
61.71%
4.01
42.53
37.83
1.04
4,802
1.36%
0.94%
9.94%
11.24%
65.71%
$1,941,412
383,413
$2,324,825
$1,743,891
346,933
$2,090,824
11.3%
10.5%
11.2%
December 31, 2021
High
Low
Dividends
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
December 31, 2020
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
$48.33
48.30
46.60
44.73
$44.29
42.81
42.09
33.46
$0.31
0.31
0.31
0.26
High
$39.41
31.83
30.99
42.38
Low
$28.57
24.68
23.85
23.27
Dividends
$0.26
0.26
0.26
0.26
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2
Annual Letter
to Shareholders
We are pleased to report that Chemung
Buoyed by strong financial results, we increased
Financial Corporation delivered strong financial
results in 2021 for our shareholders. A solid
foundation and focused commitment on our
core community banking pillars helped us
navigate a dynamic year. Organic loan growth,
prudent expense management, and higher fee
income from our Wealth Management Group all
contributed to our success.
In 2021, the Corporation’s net income totaled
$26.4 million, or $5.64 per share. These totals
represent year-over-year increases of 37.2
percent and 40.7 percent, respectively. In
addition to producing record financial results, we
grew and strengthened our Balance Sheet during
the year. Overall, our Balance Sheet increased
6.1 percent to $2.4 billion year-over-year.
Furthermore, we remain recognized as a well-
capitalized institution by our banking regulators.
our quarterly cash dividend in May by $0.05
per share, an increase of 19.2 percent. This
continued our long history of uninterrupted
dividend payments. Additionally, the
Corporation’s share price rose throughout the
year, closing at $46.45, an increase of nearly 37
percent from December 31, 2020.
As previously announced, The Corporation
approved a Share Repurchase Plan in early 2021.
Under the Plan, the Corporation may repurchase
up to 250,000 shares of common stock, or
approximately 5 percent of our outstanding
shares. At the end of 2021, 34,921 shares had
been repurchased, further enhancing value for
our Shareholders.
While the COVID-19 pandemic continued to
alter many business and social practices, the
Corporation proceeded confidently, supported
by our strong financial condition and seasoned
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Annual Letter
to Shareholders
more manageable, our bankers successfully
provided our complete menu of Community
Banking products and services to the clients
and communities we serve. Our employees’
dedication was inspirational, and their
efforts provided meaningful support to our
stakeholders.
While we remained focused on supporting
our employees and our communities, we
also continued to evaluate and enhance our
customer experience. In 2021, we improved our
business-lending experience by adding skilled
lenders to our team and revamping the former
Small Business Lending program throughout
our footprint. The refreshed Business Banking
program features specialized professionals
located throughout our markets providing
comprehensive financial solutions and assisting
small to mid-sized businesses.
During the year, we invested in our technology
platforms, providing a superior digital-banking
experience for our clients. Industry-wide,
adoption and usage rates of digital-banking
services accelerated. Our team implemented
several upgrades to our digital experience,
including online appointment scheduling,
DocuSign integration, web and mobile based
real-time alerts, contactless debit cards,
account-to-account transfers, and personal
budgeting and savings tools. Additionally,
we established a Customer Experience
Office with a particular focus on improving
the digital customer experience, mitigating
risk, and promoting efficiencies across all
lines of business.
Business Continuity Plan. We modified business
practices and work plans in response to the ever-
changing pandemic environment, while adhering
to our two primary objectives of providing
essential financial services and maintaining safe
and healthy banking environments.
We focused on delivering critical capital to
eligible local businesses throughout our
footprint during the second phase of the
Paycheck Protection Program (PPP), and closely
assisted PPP clients with the Small Business
Administration’s loan-forgiveness phase. At
the end of the year, $185.5 million in PPP loans
were forgiven, and $77.7 million in new PPP loans
were made during the program’s second phase,
which ended on May 31, 2021. We are pleased
to report that non-performing loans decreased
throughout the year, and no pandemic-related
forbearances remained at the end of the year.
As safety protocols were refined and the
In its first full year of operation, our office in
development of treatments made the virus
Western New York made a meaningful impact.
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2021 Annual Letter to Shareholders – continued
The office, which serves the Buffalo-Niagara
percent of our employees volunteered over
Falls and Rochester MSAs, originated over $47
16,300 total hours, representing nearly 90 hours
million in loans, meeting our first-year goal. The
per volunteer. The Corporation also distributed
Corporation has secured regulatory approval
over $460,000 throughout our communities
for future expansion of our services, and we
in the form of sponsorships and contributions.
look forward to bringing our full complement of
Over 65 percent of these contributions were
community banking products and services to
this important market.
The Corporation has also continued to refine our
physical distribution network. In November, our
Bath Office was relocated within the village to a
more visible and accessible location, improving
the customer experience. The new facility also
provides our team with the additional space
needed to continue building and expanding
relationships in the community.
As community bankers, we embrace our
corporate responsibility throughout our
made to organizations with a direct social or
environmental impact. Ensuring we are a good
corporate citizen is a key pillar of our success.
We commend our team for the dedication they
have shown.
Industry-wide, 2022 will be a challenging year.
We begin 2022 with the continued uncertainty
that defined the two previous years. Our
nation grapples with inflation and uncertainty
and devastation in Eastern Europe, while the
pandemic continues to limit economic growth in
certain key sectors. However, we start the year
footprint. This responsibility requires inclusion,
on much steadier ground than at the beginning
volunteerism, financial support, thoughtful
of 2021. The Corporation benefits from a strong
partnerships and the responsible oversight
balance sheet, diversity of revenue and sound
of our environmental impact. In 2021, over 52
financial condition.
The prospect of rising interest
rates is now a reality. The
Corporation has positioned its
balance sheet favorably for a
rising interest rate environment,
and our earnings will benefit
from the ensuing expansion of
the interest margin. However,
rising rates alone will not be
a panacea, and we will focus
on the importance of expense
management and non-interest
income growth.
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BUFFALO, NY
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In order to grow earnings, the Bank will again
look to channel excess liquidity appropriately
into higher-earning assets. We will maintain our
credit standards and provide particular focus
on those industries acutely impacted by the
pandemic and other emerging trends. As is
our practice, the Bank has developed initiatives
to counteract adverse conditions and take
advantage of opportunities in the market.
At this year’s annual meeting, Larry H. Becker
will be retiring from Chemung Financial
Corporation’s Board of Directors. A former
Director of Fort Orange Financial Corporation,
Larry joined our Board in May of 2011 in
connection with the Capital Bank merger.
Larry has been a strong advocate of our
company and had a direct and meaningful
impact on our success as we expanded into
the Capital Region. We extend our sincere
thanks and appreciation to Larry for his efforts,
advocacy, dedication, and support.
This has been a year of strong teamwork
and activity yielding record financial results.
Our success is a direct result of the dedication
and hard work of our talented staff and the
guidance of our Board of Directors. We are
committed to continuing to support the well-
being and prosperity of the clients, shareholders,
and communities we serve. Thank you for
your continued confidence and support of
our company.
Anders M. Tomson
President & CEO
David J. Dalrymple
Chairman of the Board
2021 Results
At A Glance
Net Income
$26.4 million, up 37.2%
Total Assets
$2.4 billion, up 6.1%
Return on Average Equity
12.94%, up 30.2%
Return on Average Assets
1.09%, up 16.0%
Efficiency Ratio
61.71%, improvement of 6.1%
Dividends Declared Per Share
$1.19, up 14.4%
Current Quarterly Cash Dividend
$0.31
Tangible Book Value Per Share
$40.44, up 6.9%
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Board of Directors
The Annual Meeting of Shareholders will be held on Tuesday, June 7, 2022, at 2:00 p.m.
Anders M. Tomson
President & CEO
Chemung Financial Corporation,
Chemung Canal Trust Company,
& CFS Group, Inc.
Raimundo C. Archibold, Jr.
Managing Director,
Schwartz Heslin Group, Inc.
Larry H. Becker
Chief Operating Officer
The Windsor Companies
Ronald M. Bentley
Retired President & CEO
Chemung Financial Corporation,
Chemung Canal Trust Company,
& CFS Group, Inc.
David M. Buicko
President & CEO
Galesi Group
David J. Dalrymple
Chairman of the Board
Chemung Financial Corporation,
Chemung Canal Trust Company,
& CFS Group, Inc.; President
Dalrymple Gravel & Contracting
Robert H. Dalrymple
Vice President & Secretary
Dalrymple Holding Corporation
President, Seneca Stone
Corporation; Vice President,
Chemung Contracting Corporation
Richard E. Forrestel, Jr.
Treasurer
Cold Spring Construction Co.
Denise V. Gonick
Owner & Strategic Advisor
Crossa Sound Concepts
Stephen M. Lounsberry III
President
Applied Technology
Manufacturing Corporation
Jeffrey B. Streeter
President
Streeter Associates
G. Thomas Tranter, Jr.
Retired President
Corning Enterprises
Thomas R. Tyrrell
Vice President
NFP Corporation
Forward-looking Statements: This report contains forward-looking statements within the meaning of Section 27A of the Securities Act,
Section 21E of the 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 these sections. 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 guarantee 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, the impact of the COVID-19
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Executive Management Team
Anders M. Tomson
President & CEO
Chemung Financial Corporation,
Chemung Canal Trust Company,
& CFS Group, Inc.
Pamela D. Burns
Senior Vice President
Director of Human Resources &
Chief Diversity Officer
L. Dale Cole
Executive Vice President
& Chief Information Officer
Peter K. Cosgrove
Executive Vice President
& Chief Credit Officer
Daniel D. Fariello
President
Capital Bank Division
Kimberly A. Hazelton
Executive Vice President
Retail Client Services
Scott T. Heffner
Senior Vice President
Director of Marketing
Jeffrey P. Kenefick
Regional President
Chemung Canal Division
Karl F. Krebs
Executive Vice President
Chief Financial Officer
& Treasurer
Kathleen S. McKillip
Vice President
Corporate Secretary
Mary E. Meisner
Senior Vice President
Senior Risk Officer
Duane W. Mittan
Vice President
& Chief Auditor
Dividend Reinvestment and Stock Purchase Plan: Registered shareholders of Chemung Financial
Corporation, through The Dividend Reinvestment and Stock Purchase Plan, may reinvest their dividends
or make quarterly cash payments to purchase additional stock of the Corporation. Shareholders not
enrolled in the plan may view and print a descriptive brochure and enrollment form at www.astfinancial.
com or receive the plan documents upon written request to the Corporation’s Secretary at the following
address: Chemung Financial Corporation, Attn: Corporate Secretary, P.O. Box 1522, Elmira, NY 14902-1522.
Thomas W. Wirth
Executive Vice President
Wealth Management Group
pandemic, changes in law or the regulatory environment, and changes in general business and economic trends. Information concerning
these and other factors can be found in the Corporation’s 2021 Annual Report on Form 10-K. These filings are available publicly on the SEC’s
website at http://www.sec.gov, on the Corporation’s website at http://www.chemungcanal.com or by written request to: Kathleen S. McKillip,
Corporate Secretary, Chemung Financial Corporation, One Chemung Canal Plaza, Elmira, NY 14901. 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. Form 10-K Annual Report: A copy of the Corporation’s Form 10-K Annual Report is available without charge to shareholders
after April 29, 2022, upon written request to the Corporation’s secretary. A copy is also available on our Transfer Agent, American Stock
Transfer & Trust Company’s website at www.astproxyportal.com/ast/01079.
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Capital Bank Advisory Board
Carl Becker
Vice President & Counsel
The Windsor Companies
Kenneth Brownell
Managing Director
Vanguard-Fine, LLC
Paola Horvath
Owner
Orange Theory Fitness
Gerald Jennings
Former Mayor
City of Albany
Dave Jersen
CEO
Jersen Construction Group
Spencer Jones
Executive
Dawn Homes Management
Raymond Kinley Jr.
Retired President & CEO
Clough Harbour & Associates
John Maloy
Managing Partner
James H. Maloy, Inc.
Dr. Lee McElroy
Director of Athletics
& Associate Vice President
Rensselaer Polytechnic
Institute
Mark Rosen
President
Dawn Homes Management
Jacqueline Rosetti-Falvey
President
Rosetti Properties
Dean Rueckert
Past President
Rueckert Advertising
Edward Trombly
Partner
Barclay Damon
Senior Vice Presidents
Laura Bennett
Retail Lending
Catherine Crandall
WMG Estate Administration
Christopher Kelly
WMG Retirement Services
Manager
Mark Lasch
WMG Regional Manager
Michelle Maloney
Commercial Lending
Joseph Tascone
WMG Investment Services
James Morton IV
WMG Regional Manager
Thomas Whitaker
Finance
Vice Presidents
Dawn Aubin
Auburn
Roberta Bastow
Commercial Lending
Michael Battersby
Support Services
Kellea Bauda
Business Banking
Bryce Cutler
Business Banking
Mark Fife
Business Banking
Yvette Francisco
Loan Review
James Kresge
Commercial Credit
Danielle Krisko
Business Banking
Koen Long
Finance
Victoria Harkins
WMG Prestige Banking
Sarah Manasse
Commercial Lending
Michael Blatt
WMG Investment Services
Kevin Harrigan
Commercial Lending
D. Tavis McKeon
E-Retail
Peter Capozzola
WMG Investment Services
Michael Hart
WMG Estate Administration
Mary Anne Narosky
Business Client Services
Marci Cartwright
CFS Group, Inc.
Christopher Coletta
Commercial Lending
Joshua Cukerstein
Commercial Lending
James Hartle
Branch Administration
Michael Novotny
Branch Administration
Mary Keefe
Business Services
John Kite
Special Assets
Nino Pellegrino
Business Banking
Monica Ridosh
Human Resources
Jennifer Sczepanski
Branch Administration
John Shea
WMG Relationship Manager
Gregory Stewart
WMG Sr. Relationship
Manager
Billie Taft-Sitler
Commercial Lending
Frank Vassallo
Finance
Sheila Washburn
Card & ATM Services
Cortni Wickham
Commercial Credit
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Assistant Vice Presidents
Kimberly Bailey
Canton & Troy
Sarah Darling
Real Estate Lending
Mohammad Khan
State Street & Slingerlands
Heidi Wahl
WMG Estate Administration
Bruce Boughton
Montour Falls & Watkins Glen
Shelby Fay
WMG Investment Services
Zachary Knapp
BCSG Relationship Manager
Patrick Ward
WMG Prestige Banking
Kevin Brimmer
WMG Investment Services
Judith Frisk
Arnot Road & Westside
Sandra Grooms
Ithaca
Melissa Letts
Contact Center
Andrea McClure
WMG Tax Services
Tracey Wardwell
Clifton Park & Wilton
Sue Williams
Owego & Waverly
Gregory Bruno
Business Banking
Pamela Colomaio
Bath & Corning
Alison Conklin-Devita
Regulatory Risk
Joel Crimmins
Commercial Lending
Jennifer Cruise
WMG Support Services
Darick Harriger
Information Technology
Patrick McFarland
WMG Estate Administration
Tyler Wilson
Regulatory Risk
Tara Humphrey
Loan Operations
Tonya Johnson
Regulatory Risk
Barbara Keller
Indirect Lending
Julianne Meeker
Information Technology
Kristen Woodward
Digital Client Experience
Kathryn Rayne
Finance
Charolette Truxal
Binghamton & Vestal
Lauren Zell
WMG Retirement Services
Assistant Treasurers
Wendy Bixler
Logistical Support
Ann Burns
Special Assets
Dena Carrigan
Elmira Heights
Tonya DeLige
Account Services
Austin Farrell
Horseheads
Erica Gaylord
Branch Administration
Daniel Hoover
Information Technology
Alice Kiser
Regulatory Risk
Lyanna Liu
Audit
Megan Thomson
Main Office
Heather Machmer
Commercial Lending
Sarah Williamson
Business Services Manager
Ashley Skiff
Southport
Andrew Stockwell
Cortland
Heidi Wood
Resource Recovery
ELMIRA, NY
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chemungcanal.com
capitalbank.com
cfsgroupny.com
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