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
1
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
Operating Results - Year Ended December 31:
2023
2022
% of Change
Financial Highlights
(in thousands, except per share data and employee count)
Net interest income
Provision (credit) for credit losses (1)
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 credit losses (1)
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 credit losses to total loans (1)
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:
0.4%
668.8%
1.8%
26.3%
8.4%
(19.8)%
(13.1)%
2.5%
7.8%
14.5%
4.4%
17.3%
(0.3)%
(13.9)%
16.3%
18.9%
0 %
0.8%
$74,457
3,262
10,460
14,089
64,243
$74,179
(554)
10,280
11,156
59,280
6,501
8,106
$25,000
$28,783
$2,710,529
1,972,664
22,517
2,429,427
195,241
339
$2,645,553
1,829,448
19,659
2,327,227
166,388
340
5.28
41.07
36.48
1.24
4,732
1.14%
0.94%
14.11%
16.09%
66.20%
6.13
35.32
30.69
1.24
4,693
1.07%
1.15%
15.93%
18.12%
61.71%
$1,492,676
465,173
$1,957,849
$1,639,794
413,156
$2,052,950
(9.0)%
12.6%
(4.6)%
December 31, 2023
High
Low
Dividends
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
$50.17
43.01
41.51
52.65
$39.00
37.60
34.20
41.50
$0.31
0.31
0.31
0.31
December 31, 2022
High
Low
Dividends
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
(1) The Corporation adopted CECL, January 1, 2023.
$47.99
48.38
47.48
47.14
$41.21
41.80
40.88
45.25
$0.31
0.31
0.31
0.31
2
2023
Annual
Letter to
Shareholders
In 2023, our Company celebrated its 190th anniversary,
and our story is a remarkable one. Chemung Canal was
established by an Act of the New York State Legislature
on April 9, 1833. When our doors first opened on
October 22, 1833, Andrew Jackson was President of the
United States, which consisted of only 24 states. In fact,
some of our Company’s first customers were veterans of
the Revolutionary War.
Today, we stand as the oldest locally owned and
managed bank in New York State and the 10th oldest
bank in the United States. This milestone would not
have been attainable without the steadfast commitment
to our communities and clients that is fundamental to
our past, present and future success.
Economic turmoil, political unrest and a challenging
interest rate environment contributed to an uncertain
landscape in the financial services industry in 2023.
Earlier in the year, three significant bank failures
highlighted the substantial impact of rapidly rising
interest rates on bank balance sheets and liquidity.
With bank failures having since been contained, a more
significant crisis was averted. However, share prices
across the broader banking sector were negatively
impacted, and Chemung Financial Corporation was
not immune. Despite the initial impact, our share price
recovered over the course of the year, increasing 8.6
percent. This performance measured well against peers,
whose median share price declined 7.8 percent year over
year.
This year, Chemung Financial Corporation delivered
consistent and meaningful results for our constituents
while navigating challenging economic times. Net
income totaled $25.0 million, or $5.28 per share. Average
3
loan balances increased $252.4 million, or 15.3
percent, concentrated mainly in the commercial
loan portfolio. This increase helped drive total
assets to $2.7 billion at the end of the year, an
increase of 2.5 percent. Commercial demand
for financing continues to be strong across the
Corporation's footprint, led by commercial real
estate activity in the Capital Region.
Consumer loans increased $12.8 million, or 4.3
percent, primarily driven by strong origination
activity in the indirect auto segment. These
increases were offset by a decrease in the
residential mortgage portfolio of $7.7 million, or
2.7 percent. This decrease was a byproduct of
our strategy to sell new loans into the secondary
market and preserve liquidity for the businesses,
consumers and charitable organizations that rely
on us for support.
Our expansion into Western New York continues.
Operating from a single office in Clarence, we
surpassed $100 million in loans for the Western
New York region during the year. To build
on this success and expand our footprint, we
have selected a prime location in the Village of
Williamsville for our first full-service regional
banking center. We expect to open the new
facility this year and look forward to bringing our
relationship-focused banking style to this dynamic
community.
Throughout the year, inflation rose due to the
easing of monetary policies during the pandemic,
Courtesy of Chemung County Historical Society
ELMIRA, NY
and in response, the Federal Reserve continued
to increase interest rates. In total, its benchmark
rate increased 5.25 percent, since 2022. Like other
institutions, the Bank experienced significant shifts
in deposits from low-cost products to higher cost
interest-bearing deposits. Deposit shifting impacted
our funding throughout the year. However, the Bank’s
liability cost remained in-line with the market and our
peers.
While the Corporation has the necessary liquidity to
execute our business plan and meet the needs of our
customers, we became more reliant on higher cost
municipal funding and time deposits throughout the
year. Wholesale funding more than doubled during
2023 to a yearly average of $190 million. To combat
these high-cost funding sources, the Bank launched
several deposit campaigns throughout the year. Year
over year, total deposits grew 4.4 percent, primarily
due to an increase in time deposits of $209.9 million.
Customer time deposits increased $140.5 million,
making up nearly 67 percent of the growth. Although
successful, these campaigns only partially offset the
need for wholesale funding.
Even in this challenging economic environment, credit
quality remained strong. Although steady for most of
the year, delinquency rates in most consumer portfolios
modestly increased in the fourth quarter, consistent
with seasonal trends. Overall, delinquencies remain at,
or below, historically normal levels, and management
continues to diligently monitor the credit quality of
relationships. These results are a testament to our
strong and disciplined lending standards and protocols.
Throughout the year, we evaluated and implemented
solutions designed to enhance the customer
experience and protect our customers from fraud.
Behind the scenes, we continue to invest significantly
in risk-focused technology solutions to safeguard our
customers and company from emerging cyber-security
and fraud threats. We also invested in our technology
platform to ensure the continuous and reliable delivery
of digital services to our clients. This allows us to
ensure that our digital customer experience is personal,
state of the art, and in-line with the exceptional
customer experience that is the hallmark of our
institution.
Our commitment to our colleagues and communities
remains a key priority. Staffing levels were managed
throughout the year to maximize client experience and
mitigate risks to the Corporation. We invested in our
teams by providing opportunities such as Leadership
Chemung, our in-house leadership program, and
Career Circles, which facilities peer mentoring. We
provide educational programs and vigorously support
the professional development of our colleagues.
Additionally, the Bank remains consistent with its
commitment to community-based organizations.
We focus on supporting not-for-profit organizations,
schools, and groups that meet the basic needs
of people, provide financial literacy, and support
economic growth. Last year, our employees proudly
volunteered over 10,400 hours, and we were pleased to
invest nearly $560,000 into our communities through
Read More
4
2023 Annual Letter to Shareholders - Continued
sponsorships and charitable contributions.
During the year, the Bank managed the significant transition of two key
positions on its Executive Management Team. The Bank navigated these
transitions without interruption to operations or results. Pam Burns, Director
of Human Resources, retired December 31, 2022, and Karl Krebs, Chief
Financial Officer, retired on June 30, 2023. Pam and Karl served our Executive
Management Team admirably for a combined 45 years. We thank them for their
service and significant contributions to the success of our Corporation.
In July, Dale M. McKim III joined the Bank’s Executive Management Team as
its Chief Financial Officer and Treasurer. Dale brings more than 25 years of
finance and risk-management experience to the Company, most recently
working as Chief Risk Officer for Evans Bank and previously as a Partner at
KPMG LLP in Buffalo. A testament to our succession planning efforts, Monica
L. Ridosh was promoted to Director of Human Resources and Chief Diversity
Officer. Monica joins our Executive Management Team after working 18 years
with the Bank, including nearly 15 years in the Human Resources Department.
We congratulate Dale and Monica and look forward to their continued
contributions to our Company.
Going forward, we will continue to focus on our key strategies to deliver
consistent and sustainable performance: revenue growth, operating
efficiencies, customer experience, and supporting our colleagues and
communities. We have a committed and talented staff and dedicated and
capable Board of Directors to provide guidance and leadership. While 190 years
of continuous operation does not provide a guarantee for our future, we will
remain relevant, competitive and focused on our core principles to ensure we
will be a reliable resource for our stakeholders for many years to come.
We are grateful for the continued support of our shareholders, clients,
employees and the communities we serve.
Anders M. Tomson
President & CEO
David J. Dalrymple
Chairman of the Board
5
WATKINS GLEN, NY
COMMUNITY SUPPORT
$559,000
Including
$52,342
OUR 2023 GIVING IN ACTION
Given in support of our communities
from employee
contributions
10,442 Hours
Volunteered
165 Employee
Volunteers
Over
400
organizations supported
across our county
14
footprint
6
Board of Directors
The Annual Meeting of Shareholders will be held on Tuesday, June 4, 2024, 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
Crossa Sound Concepts
Stephen M. Lounsberry III
President
Applied Technology
Manufacturing Corporation
Joseph 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, the impact of the COVID-19
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
President
Chemung Canal Division
Kathleen S. McKillip
Vice President
Corporate Secretary
Dale M. McKim III
Executive Vice President
Chief Financial Officer
& Treasurer
Mary E. Meisner
Senior Vice President
Senior Risk Officer
Monica L. Ridosh
Senior Vice President
Director of Human Resources &
Chief Diversity Officer
Thomas W. Wirth
Executive Vice President
Wealth Management Group
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.
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 2023 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 24, 2024, 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
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
Kristina Vaselewski
WMG Prestige Banking
Patrick Ward
WMG Prestige Banking
Peter Capozzola
WMG Investment Services
Nathan Gage
WMG Retirement Services
Michael Novotny
Branch Administration
Cortni Wickham
Commercial Credit
Kevin Harrigan
Commercial Lending
Darick Harriger
Information Technology
Nino Pellegrino
Business Banking
Kathryn Rayne
Finance
Michael Hart
WMG Estate Administration
Jennifer Sczepanski
Branch Administration
James Hartle
Branch Administration
John Stempin
Finance
Tyler Wilson
Compliance
Marci Cartwright
CFS Group, Inc.
Christopher Coletta
Commercial Lending
Christopher Conklin
Information Security
Alison Conklin-Devita
Regulatory Risk
Joshua Cukerstein
Commercial Lending
Bryce Cutler
Business Banking
Mary Keefe
Business Services
James Kresge
Commercial Credit
Shelby Fay
WMG Investment Services
Danielle Krisko
Commercial Lending
9
Gregory Stewart
WMG Investment Services
Billie Taft-Sitler
Commercial Lending
Schuyler Tilly
Commercial Lending
SOUTHERN TIER,
SUSQUEHANNA RIVER
Assistant Vice Presidents
Christina Allen
Ithaca Station & Elmira Road
Kristen Henderson
Digital Client Experience
Kimberly Bailey
Canton & Troy
Tara Humphrey
Loan Operations
Bruce Boughton
Montour Falls & Watkins Glen
Tonya Johnson
Regulatory Risk
Kevin Brimmer
WMG Investment Services
Barbara Keller
Indirect Lending
Charolette Truxal
Binghamton & Vestal
Mary Beth Uebrick
Real Estate Lending
Heidi Wahl
WMG Estate Administration
Tracey Wardwell
Clifton Park & Wilton
Renée Wheeler
Business Banking
Jon Wilcox
Auburn & Seneca Falls
Sue Williams
Owego & Waverly
Sarah Williamson
Business Services
Zachary Knapp
Municipal Banking
Megan Kozdemba
Real Estate Lending
Heather Machmer
Commercial Lending
Andrea McClure
WMG Tax Services
Julianne Meeker
Information Technology
Lauren Zell
WMG Retirement Services
Lenora Phillips
Real Estate Lending
Kyle Reyell
Municipal Banking
Connie Sibrava
WMG Administration
Sara Soprano
WMG Retirement Services
Dena Carrigan
Horseheads
Pamela Colomaio
Bath & Corning
Joel Crimmins
Commercial Lending
Jennifer Cruise
WMG Support Services
Sarah Darling
Human Resources
Jebb Dennis
Enterprise Project
Management
Austin Farrell
WMG Estate Administration
Deborah French
Main Office
Judith Frisk
Arnot Road & Westside
Assistant Treasurers
Jacob Aquilio
Finance
Wendy Bixler
Logistical Support
Heidi Cleary
Resource Recovery
Kathleen Cook
Assistant Corporate
Secretary
Tonya DeLige
Account Services
Erica Gaylord
Branch Administration
Jolie Guiles
Contact Center
Daniel Hoover
Information Technology
Carol Kane
Southport
Alice Kiser
Regulatory Risk
Lyanna Liu
Regulatory Risk
Jody Scott
Elmira Heights
Ashley Skiff
Account Services
Dana Stewart
Business Services
Andrew Stockwell
Cortland
SOUTHERN TIER,
SUSQUEHANNA RIVER
10
Chemung Financial
C o r p o r a t i o n
2023 A n n u a l
R e p o r t