2022
CHEMUNG
FINANCIAL
CORPORATION
ANNUAL REPORT
Bank Anywhere,
Anytime.
ALBANY
132 State St., Albany
65 Wolf Rd., Albany
581 New Loudon Rd., Latham
1365 New Scotland Rd., Slingerlands
BRADFORD, PA
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
1
CHEMUNG
One Chemung Canal Plaza, Elmira
628 W. Church St., Elmira
100 W. McCanns Blvd., Elmira Heights
29 Arnot Rd., Horseheads
602 S. Main St., Horseheads
951 Pennsylvania Ave., Southport
CORTLAND
1094 Highway 222, Cortland
ERIE
9159 Main St, 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
Operating Results - Year Ended December 31:
2022
2021
% of Change
Financial Highlights
(in thousands, except per share data and employee count)
Net interest income
Provision (credit) 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)
13.1%
N/M
(7.2)%
(12.8)%
6.5%
10.5%
8.9%
9.4%
20.5%
(6.5)%
8.0%
(21.3)%
0.9%
8.7%
(21.7)%
(24.1)%
4.2%
0.2%
$74,179
(554)
10,280
11,156
59,280
$65,589
17
11,072
12,798
55,682
8,106
7,335
$28,783
$26,425
$2,645,553
1,829,448
19,659
2,327,227
166,388
340
$2,418,475
1,518,249
21,025
2,155,433
211,455
337
6.13
35.32
30.69
1.24
4,693
1.07%
1.15%
15.93%
18.12%
61.71%
5.64
45.09
40.44
1.19
4,683
1.38%
1.09%
12.94%
14.49%
61.71%
Trust Assets Under Administration (market value):
as Fiduciary
as Custodian
Common Stock Market Prices and Dividends
Paid During Past Two Years:
$1,639,794
413,156
$2,052,950
$1,941,412
383,413
$2,324,825
(15.5)%
7.8%
(11.7)%
December 31, 2022
High
Low
Dividends
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
December 31, 2021
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
$47.99
48.38
47.48
47.14
$41.21
41.80
40.88
45.25
$0.31
0.31
0.31
0.31
High
$48.33
48.30
46.60
44.73
Low
$44.29
42.81
42.09
33.46
Dividends
$0.31
0.31
0.31
0.26
2
2022 Annual Letter
to Shareholders
For nearly 190 years, Chemung Canal Trust
Company has executed with conviction its
community-banking model. As our country
emerges from the pandemic, we are proud of
the support we extended to our communities.
2022 was certainly a dynamic year. Now, as
new challenges emerge, we remain committed
to providing the stakeholders of Chemung
Financial Corporation the same high level
of assistance and service that has been the
hallmark of our proud Company.
The economic environment of 2022 changed
quickly as the urgency, if not the presence, of
the pandemic lifted from our communities.
Although a renewed sense of normalcy
evolved, the ramifications of the pandemic
steadily became evident. Inflation and rising
interest rates created an uncertain outlook for
our industry. In addition, the Russian invasion
of Ukraine added to these levels of uncertainty.
During the year, the consumer price index
(CPI) increased 6.5 percent, primarily driven
by increases in food and energy prices. As a
result, the Federal Reserve Board (FRB) raised
interest rates by 425 basis points to combat
rising inflation.
Despite these challenges, we are pleased
to report a record year for the Corporation.
Earnings at year-end 2022 totaled $28.8
million, or $6.13 per share, representing the
highest annual earnings and highest earnings
per share (EPS) in the Bank’s history, a year-
over-year increase of 8.9 percent and 8.7
percent, respectively.
Our balance sheet growth was strong in 2022.
Assets increased by 9.4 percent and totaled
$2.646 billion at year-end. In total, net loans
increased 20.9 percent from the prior year,
representing growth from significant activity
across all lending segments. Specifically
3
noteworthy was production in the
commercial, residential mortgage, and
indirect auto business lines. Net interest
income increased 13.1 percent, primarily
due to increases in average loan yields
and a $101.0 million increase in average
loan balances. The Bank maintained its
standard of exceptional credit quality, with
non-performing loans representing only 0.45
percent of the total loan portfolio. These
components drove results, with return on
average assets yielding 1.15 percent, along
with a return on average equity of 15.93
percent, representing improvements of 5.5
percent and 23.1 percent, respectively.
Indicative of the Bank’s strong credit quality,
the final $2.4 million pandemic-related
portion of the allowance for loan losses was
released, and we no longer hold an allowance
associated with COVID-19. As previously
noted, we established the specific allowance
at the onset of the pandemic in anticipation
of potential credit stress created by the
crisis.
Our traditionally low-cost deposits remained
stable during the first half of the year.
However, even our very strong deposit
franchise was not immune to market forces.
The Bank’s funding costs accelerated as the
year progressed. Loan growth was funded
through a combination of organic deposit
growth, brokered certificates of deposit, and
overnight borrowing from the Federal Home
Loan Bank of New York. In spite of rising
funding costs, our asset-sensitive balance
sheet reacted positively to the rising rate
environment, resulting in a noteworthy boost
to net-interest income of 13.1 percent year-
over-year.
The Corporation’s Wealth Management Group
again had a strong year in 2022. In spite of
continued market volatility and downward
pressure, investment performance remained
positive on a relative basis and now exceeds
seven years of benchmark assessments.
Equally important, new client acquisition and
client retention remained robust and our teams
exceeded their targeted benchmarks in these
key areas. For the second year in a row, the
Corporation’s brokerage arm, CFS Group, Inc.,
had a meaningful impact on the company,
exceeding $1 million in revenue in 2022.
The Bank continues to enhance its distribution
platform to foster growth. Our office in Western
New York, now in its second year of service,
continues to make a significant impact on the
Bank’s success. Under new leadership in this
market, total loans now exceed $80 million
and make a meaningful contribution to the
Corporation’s net interest income. Management
and the Board of Directors are committed
to building a solid presence in Western New
York, and we look forward to making our full
complement of products and services more
readily available in this community in the near
future.
In 2022, the Corporation maintained a strong
focus on the execution of its long-term strategic
plan with a particular emphasis on mitigating
risk and promoting efficiency. We continue
to elevate our customer service commitment
to create a frictionless, efficient and secure
experience, especially through the Bank’s
evolving digital banking platforms. Digital
roadmaps for each line of business
guide our implementation,
execution, and investment
in an effort to enhance
internal and
ELMIRA, NY
external interaction. Digital product usage
is broadly tracked to understand the digital
needs of our customers and further refine those
initiatives. In 2023, we continue our focus on
evaluating digital products, while identifying
opportunities to enable a holistic view of client
relationships.
As community bankers, we embrace our
corporate responsibility. This requires inclusion,
volunteerism, financial support, thoughtful
partnerships and the responsible oversight of our
environmental impact. In 2022, over half of our
employees volunteered over 8,100 hours outside
of their normal workdays in our communities.
The Corporation distributed more than $540,000
to our communities in the form of sponsorships
and contributions.
In 2022, we continuously reviewed our process
to make banking services more accessible to
the unbanked and underbanked populations in
the communities we serve. In conjunction with
the national organization Cities for Financial
Empowerment Fund, the Bank successfully
launched a new account product, BankOn
Checking, aimed at breaking down barriers
associated with the account-opening process.
Our BankOn Checking Account is certified as
meeting over 25 national requirements for a safe
and affordable consumer transaction account.
We work to assist our communities through
financial-literacy efforts and collaboration with
small businesses. We focus on helping to provide
financial services which enhance the economic
opportunities for minority, women, and veteran
businesses continuing our long tradition in
helping to create small business and encourage
entrepreneurs. We are humbled and proud of the
effort and dedication of our colleagues as they
assist our neighbors and raise up those in need.
This year, they exhibited the same signature
characteristics that have been a meaningful
piece of our culture for 190 years.
At last year’s annual meeting, Larry
H. Becker retired from Chemung
Financial Corporation’s Board of
Directors. Larry was a strong
advocate of our ...
Read More
4
2022 Annual Letter to Shareholders - Continued
Company and had a direct and meaningful impact on our success as we expanded into, and grew in,
the Capital Region. We thank Larry for his years of service, wise oversight and commitment to our great
Company. This year, the Board welcomed Joseph F. Meade IV, of Hammondsport, NY as a Director to the
Boards of Chemung Financial Corporation and Chemung Canal Trust Company. Mr. Meade, President &
CEO of Mercury Corporation, brings strong executive-level experience to our Board that will provide our
company with immediate and impactful leadership.
October of 2023 will mark Chemung Canal Trust Company’s 190th Anniversary. Our core banking
principles, strong leadership and ability to adapt have enabled this great company to withstand every
obstacle and economic anomaly since 1833. 2023 will certainly present its share of new challenges as
the potential for a recession looms and the national economy continues to experience elevated levels
of inflation. The FRB has committed to slowing growth in an effort to reverse broad-based inflationary
pressures. Although an environment such as this may affect our Corporation’s earnings and credit
performance, we are confident in our ability to react prudently as these situations continue to evolve.
2023 has already produced unique events that have heightened focus on the banking industry. In March,
after the shuttering of two of the country’s larger banks, an immediate sense of unease permeated our
communities, and our bankers reacted quickly to address the concerns of our clients and our employees.
Unlike these failed banks, Chemung is well-positioned to withstand mounting inflationary pressures,
rising interest rates and an inverted yield curve. The Bank continues to be considered well capitalized
by our State and Federal regulators and has strong risk programs in place to manage potential market
disruption. Our deposit base encompasses a diverse cross-section of customers and sources, which
effectively protects us from industry-specific downturns. Further, low risk securities on our balance
sheet safeguard our exposure to these exceptional conditions and provide a strong buffer against
inevitable market disturbances.
Chemung Financial Corporation is poised and ready to deliver strong results for our stakeholders. We
will again execute on our defined business models, build on our past successes, and confidently manage
through the challenges that lie ahead. We continue to focus on our core values and support the well-
being, growth and prosperity of our employees, clients, shareholders, and communities.
We thank you for your continued support of our great company.
SCHENECTADY, NY
Anders M. Tomson
President & CEO
David J. Dalrymple
Chairman of the Board
5
g 8.9%
$28.8 million
Net Income
g 5.5%
1.15%
Return on
Average Assets
$0.31
Quarterly Cash
Dividend
g 9.4%
$2.6 billion
Total Assets
unchanged
61.71%
Efficiency Ratio
h 24.1%
$30.69
Tangible Book
Valie Per Share
g 23.1%
15.93%
Return on
Average Equity
g 4.2%
$1.24
Dividends Declared
Per Share
9.53%
Five-Year
Shareholder Return
2022 by the Numbers
Over 8,100 hours
Volunteered by
our Employees
Over 50%
Of our Employees
Volunteered
Over $540,000
To our Communities
through Sponsorships
& Contributions
6
Board of Directors
The Annual Meeting of Shareholders will be held on Tuesday, June 6, 2023, 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.
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
Cross Sound Concepts
Stephen M. Lounsberry, III
President
Applied Technology
Manufacturing Corporation
Joesph F. Meade, IV
President & CEO
Mercury Corporation Inc.
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, changes in law or the
7
Executive Management Team
Anders M. Tomson
President & CEO
Chemung Financial Corporation,
Chemung Canal Trust Company,
& CFS Group, Inc.
L. Dale Cole
Executive Vice President
Chief Information Officer
Peter K. Cosgrove
Executive Vice President
Chief Credit Officer &
Chief Risk 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
Senior Vice President
& Chief Auditor
Monica L. Ridosh
Vice President
Director of Human Resources &
Chief Diversity Officer
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
regulatory environment, and changes in general business and economic trends. Information concerning these and other factors can be found
in the Corporation’s 2022 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 28, 2023,
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.
8
Capital Bank Advisory Board
Carl Becker
Vice President & Counsel
The Windsor Companies
Larry Becker
Chief Operating Officer
The Windsor Companies
Kenneth Brownell
Managing Director
Vanguard-Fine, LLC
Michael Elmendorf
President & CEO
Associated General
Contractors of NYS
Robert Kind
Managing Shareholder
Teal, Becker & Chiaramonte
CPAs
Paola Horvath
Owner
Orange Theory Fitness
Raymond Kinley, Jr.
Retired President & CEO
Clough Harbour & Associates
Mark Rosen
President
Dawn Homes Management
Jacqueline Rosetti-Falvey
President
Rosetti Properties
Gerald Jennings
Former Mayor
City of Albany
Jonathan deForest
President & Principal
BBL Construction Services,
LLC
Spencer Jones
Vice President of Operations
Cass Hill Development
John Maloy
Managing Partner
James H. Maloy, Inc.
Dr. Lee McElroy
Director of Athletics
& Associate Vice President
Rensselaer Polytechnic
Institute
Dean Rueckert
Past President
Rueckert Advertising
Edward Trombly
Partner
Barclay Damon
Senior Vice Presidents
Laura Bennett
Retail Lending
Christopher Kelly
WMG Retirement Services
Mark Lasch
WMG Investment Services
Joseph Tascone
WMG Investment Services
Catherine Crandall
WMG Estate Administration
Elizabeth Kraus
Commercial Lending
James Morton, IV
WMG Investment Services
Thomas Whitaker
Finance
Vice Presidents
Roberta Bastow
Commercial Lending
Michael Battersby
Support Services
Kellea Bauda
Business Banking
Joshua Cukerstein
Commercial Lending
Bryce Cutler
Business Banking
Mary Keefe
Business Services
James Kresge
Commercial Credit
Shelby Fay
WMG Investment Services
Danielle Krisko
Business Banking
Michael Blatt
WMG Investment Services
Gregory Bruno
Business Banking
Mark Fife
Business Banking
Yvette Francisco
Loan Review
Sarah Manasse
Commercial Lending
Mary Anne Narosky
Business Client Services
Tyler Wilson
Compliance
Gregory Stewart
WMG Investment Services
Billie Taft-Sitler
Commercial Lending
Kristina Vaselewski
WMG Prestige Banking
Cortni Wickham
Commercial Credit
Peter Capozzola
WMG Investment Services
Nathan Gage
WMG Retrement Services
Michael Novotny
Branch Administration
Marci Cartwright
CFS Group, Inc.
Christopher Coletta
Commercial Lending
Christopher Conklin
Information Security
Kevin Harrigan
Commercial Lending
Darick Harriger
Information Technology
Nino Pellegrino
Business Banking
Kathryn Rayne
Finance
Michael Hart
WMG Estate Administration
Jennifer Sczepanski
Branch Administration
Alison Conklin-Devita
Regulatory Risk
James Hartle
Branch Administration
John Stempin
Finance
9
Assistant Vice Presidents
Kimberly Bailey
Canton & Troy
Austin Farrell
WMG Estate Administration
Megan Kozdemba
Real Estate Lending
Heidi Wahl
WMG Estate Administration
Bruce Boughton
Montour Falls & Watkins Glen
Deborah French
Main Office
Kevin Brimmer
WMG Investment Services
Judith Frisk
Arnot Road & Westside
Dena Carrigan
Horseheads
Pamela Colomaio
Bath & Corning
Joel Crimmins
Commercial Lending
Jennifer Cruise
WMG Support Services
Sarah Darling
Human Resources
Sandra Grooms
Ithaca
Tara Humphrey
Loan Operations
Tonya Johnson
Regulatory Risk
Barbara Keller
Indirect Lending
Mohammad Khan
Latham & Slingerlands
Garrett Dawson
Wolf Road & Schenectady
Zachary Knapp
Municipal Banking
Heather Machmer
Commercial Lending
Andrea McClure
WMG Tax Services
Julianne Meeker
Information Technology
Lenora Phillips
Real Estate Lending
Kyle Reyell
Municipal Banking
Patrick Ward
WMG Prestige Banking
Tracey Wardwell
Clifton Park & Wilton
Jon Wilcox
Auburn & Seneca Falls
Sue Williams
Owego & Waverly
Kristen Woodward
Digital Client Experience
Sara Soprano
WMG Retirement Services
Lauren Zell
WMG Retirement Services
Charolette Truxal
Binghamton & Vestal
Mary Beth Uebrick
Real Estate Lending
Assistant Treasurers
Wendy Bixler
Logistical Support
Heidi Cleary
Resource Recovery
Kathleen Cook
Executive Specialist
Tonya DeLige
Account Services
Jebb Dennis
Enterprise Project
Management
Erica Gaylord
Branch Administration
Jolie Guiles
Contact Center
Daniel Hoover
Information Technology
Carol Kane
Southport
Alice Kiser
Regulatory Risk
Lyanna Liu
Audit
Jody Scott
Elmira Heights
Ashley Skiff
Account Services
Andrew Stockwell
Cortland
Sarah Williamson
Business Services
BUFFALO, NY
10
Chemung Financial
C o r p o r a t i o n
A n n u a l
2022
R e p o r t