Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Debt Investor Presentation (June 2025)
46 slides from Chemung Financial's debt investor presentation, Jun 10, 2025
Slide 1: Fixed Income Investor Presentation 2025 Q1 Update
Fixed Income Investor Presentation 2025 Q1 Update Confidential
Slide 2: Offering Disclaimer
Offering Disclaimer 2 Chemung Financial Corporation Fixed Income Investor Presentation The information contained in this confidential presentation is a summary and it is not complete. It has been prepared for use only in connection with the proposed private placement (the “Offering”) of subordinated
Slide 3: Safe Harbor Statement
Safe Harbor Statement 3 Chemung Financial Corporation Forward - looking Statements : This report contains forward - looking statements within the meaning of Section 27 A of the Securities Act . Chemung Financial Corporation intends its forward - looking statements to be covered by the safe harbor pr
Slide 4: 1Q 2025 Financial Highlights and Company Snapshot
1Q 2025 Financial Highlights (dollars in thousands, except per share data) Market Data as of 5/20/2025 Price Close (5/20/2025) Price / Tangible Book (1) Price / 2025 EPS Price / 2026 EPS Market Capitalization ($mm) 3/31/2025 Balance Sheet Highlights $2,796,725 Total Assets 2,097,636 Gross Loans HFI
Slide 5: Corporate Organization
Corporate Organization Trust and Wealth Management services Provides mutual funds, securities and insurance brokerage services through LPL Financial Banking operations in Southern Tier and Finger Lakes of New York Wealth Management Group Banking operations in the Capital District of New York Banking
Slide 6: Experienced Management Team
Kimberly Hazelton EVP, Senior Banking Officer Industry Experience: 32 years Years with CHMG: 9 years Previously with TD Bank Anders Tomson President and CEO Industry Experience: 32 years Years with CHMG: 14 years Previously with Citizens Experienced Management Team Dale McKim EVP & CFO Industry Expe
Slide 7: Company Focus & Initiatives
Company Focus & Initiatives Market Expansion and Stability Dominate legacy markets and actively expanding into higher - growth regions like Buffalo and Albany, ensuring robust deposit base and liquidity Strong Credit Quality Maintain conservative underwriting and solid credit quality, resulting in l
Slide 8: Diversified Streams of Fee Income
Overdraft Fees 12.41% Other Deposit Service Charges 6.61% Interchange Income 17.61% Wealth Management Revenue 48.68% Change in FV of Equity Securities - 0.80% Net Gains on Sales of Loans 0.68% CFS Group, Inc. Revenue 3.79% Other 11.02% Diversified Streams of Fee Income Revenue Fee Income Business Li
Slide 9: CHMG Market Demographics
4.22% 3.59% 3.50% 3.11% 2019 Legacy Markets 2024 Growth Opportunity Markets (1) 15.7% Median Household Income Growth 2019 - 2024 (%) 17.7% Legacy Markets Growth Opportunity Markets (1) CHMG Market Demographics Unemployment 2019 - 2024 (%) Source: S&P Capital IQ Pro; Demographic data as of June 30, 2
Slide 10: Legacy Markets and Growth Markets Deposit Share
Legacy Markets Dominant market share of deposits Growth Markets Small share of much larger markets; significant opportunity for growth Competitive Advantage Deployment of lower cost deposits to higher growth markets Share 2024 Deposits County 61.22% $852,755,000 Chemung 2.38% $382,727,000 Albany 74.
Slide 11: Markets Fueled by Major Investments Influx
Markets Fueled by Major Investments Influx Empire AI Consortium Background • Collaboration of New York's leading public and private universities to establish a state - of - the - art artificial intelligence computing center at SUNY’s University at Buffalo; AI research dedicated to addressing societa
Slide 12: Financial Overview
Financial Overview 12
Slide 13: Planned Offering Overview
Planned Offering Overview Chemung Financial Corporation (NASDAQ: CHMG) Issuer: Fixed - to - Floating Rate Subordinated Notes Due 2035 Security Offered: $40 million Offering Size: BBB - Stable (HoldCo) by Kroll Bond Rating Agency Inc. Rating (1) : Security (Reg D, DTC / TRACE), or loan Format: 10 Yea
Slide 14: Balance Sheet Restructuring and Subordinated Debt Raise
Balance Sheet Restructuring and Subordinated Debt Raise 14 Chemung Financial Corporation Fixed Income Investor Presentation Contemplated Transaction Overview: Balance Sheet Optimization ▪ Sell ~$200M+ of low yielding AFS securities (Market Value) ▪ Pre - Tax Loss: ~$17.0M ▪ Average Yield on Securiti
Slide 15: History of Balance Sheet Growth
History of Balance Sheet Growth Source: S&P Capital IQ Pro and Company Documents; Financial data as of or for the quarter ended March 31, 2025; March 31, 2025 figures unaudited (1) Represents a Non - GAAP measure; Please refer to Non - GAAP reconciliation in Appendix $1,309 $1,536 $1,518 $1,829 $1,9
Slide 16: Track Record of Strong Performance
8.9% 9.9% 12.9% 15.9% 14.1% 11.5% (2) 11.0% 2023 2024 2025Q1 2025 2019 2020 2021 2022 Source: S&P Capital IQ Pro and Company Documents; Financial data as of or for the quarter ended March 31, 2025; March 31, 2025 figures unaudited Note: See Balance Sheet Restructuring and Subordinated Debt Raise pag
Slide 17: Track Record of Strong Performance (Cont.)
68.0% 65.7% 62.2% 61.7% 66.2% 68.9% 65.6% 2019 2020 2021 2022 2023 2024 2025Q1 (3) 3.46% 3.64% (2) 2.96% 2.76% 2.85% 3.05% 2.84% 3.25% 2019 2020 2021 2022 2023 2024 2025Q1 2025 $32.74 $37.83 $40.44 $30.69 $36.48 $40.55 $42.95 2019 2020 2021 2022 2023 2024 2025Q1 24.9% 25.1% 25.7% 22.7% 22.9% 23.8% 2
Slide 18: Consolidated Capital Ratios
14.0% 13.6% 14.2% 12.6% 13.3% 13.4% 13.5% 14.4% 2019 2020 2021 2022 2023 2024 2025Q1 2025Q1 9.1% 7.9% 7.9% 5.5% 6.4% 7.0% 7.4% 9.4% 7.8% 8.2% 8.4% 8.9% 9.4% 9.5% 2019 2020 2021 2022 2023 2024 2025Q1 12.7% 12.4% 13.0% 11.5% 12.1% 12.3% 12.4% 2019 2020 2021 2022 2023 2024 2025Q1 9.4% 7.9% 8.1% 8.2% 8.
Slide 19: Historically Strong Asset Quality
10.59% 6.54% 6.59% 5.95% 5.49% 4.48% 4.49% 2019 2020 2021 2022 2023 2024 2025Q1 0.11% 0.47% (0.01%) 0.05% 0.05% 0.06% 2019 2020 2021 2022 2023 2024 2025Q1 1.09% 0.57% 0.57% 0.37% 0.40% 0.35% 0.37% 2019 2020 2021 2022 2023 2024 2025Q1 Historically Strong Asset Quality Source: S&P Capital IQ Pro and C
Slide 20: Loans
Loans 20
Slide 21: Historically Strong and Resilient Credit
1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 Q1'25 0.50% 0.00% 1.50% 1.00% 2.00% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 Q1'25 Historically Strong and Resilient Credit NPA / Assets (%) NCOs / Average
Slide 22: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses Loan Balance (% of Loans) ($000) ($000) Loan Category 0.51% $123 $24,109 Construction 0.75% $455 $60,271 HELOC & Jr. Liens 0.94% $3,253 $346,060 1 - 4 Family 1st Liens 0.93% $4,161 $448,806 Multifamily 1.24% $1,984 $160,269 Owner Occupied CRE 0
Slide 23: Credit Underwriting and Committees
Credit Underwriting and Committees Credit and Underwriting Limits and Policies Credit Committees ▪ Legal Lending Limit : $41,950,000 as of March 31, 2025 ▪ Set by NYS Banking Law Section 103 ▪ Definition of Legal Lending Limit = Total Equity Capital * 15% ▪ Total Relationship Limit : ~ $40 million ▪
Slide 24: Loan Composition
14.10% 7.38% 52.70% 13.13% 12.69% Portfolio Concentrations to Total Loans March 31, 2025 Commercial & Ind. CRE Owner Occupied CRE Non - Owner Occupied Residential Mort. Consumer Loan Composition Note: March 31, 2025 figures unaudited 24 Chemung Financial Corporation Fixed Income Investor Presentatio
Slide 25: Summary of Loan Growth by Type
14.1% 13.8% 13.4% 14.4% 14.1% 52.9% 54.5% 56.9% 58.8% 60.2% 2.8% 17.1% 15.6% 14.1% 13.3% 13.1% 7.8% 11.0% 10.7% 8.6% 7.8% 5.3% 5.1% 4.9% 4.9% 4.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Loans by Type (%) Other Cons. Indirect Cons. Res. Mort. PPP Comm. Mort. Comm. & Ind. Summary of Loan Growth ▪
Slide 26: Summary of Loan Growth by Division
$592.2 $651.5 $665.7 $626.9 $616.3 $879.0 $1,098.1 $1,206.6 $1,302.6 $1,318.3 $47.0 $79.8 $100.4 $141.9 $163.0 Summary of Loan Growth Q1 2025 2024 2023 2022 2021 29.38% 30.26% 33.75% 35.60% 39.01% Chemung 62.85% 62.89% 61.16% 60.04% 57.90% Capital 7.77% 6.85% 5.09% 4.36% 3.09% Canal Note: CAGR: 12/3
Slide 27: Loan Types and NAICS Concentrations
Balances ($ Percentage Thousands) NAICS Code / Descriptions 69.8% $ 1,086,027 Real Estate, Rental & Leasing 3.3% 50,690 Manufacturing 3.9% 61,344 Health Care & Social Assistance 1.8% 28,597 Wholesale Trade 3.7% 56,957 Construction 5.5% 85,918 Accommodation & Food Services 3.6% 56,386 Arts, Entertain
Slide 28: Commercial Real Estate Portfolio
Weighted Avg. LTV % of CRE Loans 3/31/25 Balances ($ Thousands) CRE Portfolio Composition 62% 36% $ 476,739 Multifamily 58% 18% 229,172 Retail – 12% 95,671 Construction 62% 10% 132,109 Office 51% 7% 94,042 Warehouse 57% 4% 59,597 Hotel 54% 13% 172,926 Other 100% $ 1,260,256 Total Multifamily 36% Ret
Slide 29: Commercial Real Estate by Region
Powered by Bing © GeoNames, Microsoft, TomTom Series1 % of CRE Loans 3/31/25 Balances ($ Thousands) Region 63% $ 795,960 Capital Region 16% 207,671 Southern Tier & Finger Lakes 16% 198,493 Western New York 5% 58,132 Other 100% $ 1,260,256 Total Commercial Real Estate $52.3 Million in CRE Loan Balanc
Slide 30: Commercial Real Estate Maturity & Repricing Details
Variable Rate 33% Adjustable Rate 37% Fixed Rate 30% Rate Type Amount ($ Thousands) Variable Rate $ 420,492 Adjustable Rate 462,758 Fixed Rate 377,006 Total $ 1,260,256 74,218 67,438 82,576 89,340 104,988 5.89% 5.35% 6.55% 7.09% 8.33% 2025 2026 2027 2028 CRE loans scheduled to mature in 2030 and aft
Slide 31: Consumer Loan Portfolio
$541.6 Millon 0.35% 0.97% 1.36% 3.24% 4.37% 5.69% 4.99% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 740 and above 720 to 739 700 to 719 680 to 699 660 to 679 640 to 659 Below 640 Consumer Loans by Credit Score ($ Thousands) Balance Perce
Slide 32: Investments
Investments 32
Slide 33: Investment Portfolio – Fair Value and AOCI
Chemung Financial Corporation $60,431 $55,574 $55,332 $56,906 $57,571 $577,361 $435,131 $403,824 $365,934 $366,424 $42,303 $38,892 $38,686 $35,505 $35,268 $111,931 $102,992 $86,151 $73,097 $69,064 $3,383 $(96,609) $(85,099) $(85,829) $(74,798) $(120,000) $(100,000) $(80,000) $(60,000) $(40,000) $(20
Slide 34: Deposits
Deposits 34
Slide 35: Deposit Costs and Composition
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2021 NOW Time Deposits 2022 2023 2024 Savings and Money Market Brokered Deposits Q1 2025 Cost of Deposits Total Cost of Interest Bearing Deposits Q1 2025 2024 2023 2022 2021 Rate 1.57% 1.78% 1.10% 0.15% 0.08% NOW 1.83% 2.02% 1.45% 0.24% 0.10% Savings and Mon
Slide 36: Liquidity
Liquidity Williamsville, New York Branch 36 Chemung Financial Corporation Fixed Income Investor Presentation Remaining Available Outstanding Total Available (Dollars in Thousands) 137,296 $ 85,000 $ 222,296 $ FHLB Advances 75,000 - 75,000 Correspondent Bank Lines of Credit 198,874 80,799 279,673 (1)
Slide 37: Appendix
Appendix 37
Slide 38: Earnings and Dividends Per Share; Capital Management
2021 2022 2023 2024 Q1 2025 EPS $5.64 $6.13 $5.28 $4.96 $1.26 Dividends / Share $1.19 $1.24 $1.24 $1.24 $0.32 Book Value / Share $45.09 $35.32 $41.07 $45.13 $47.49 Tangible Book Value / Share $40.44 $30.69 $36.48 $40.55 $42.95 $ - 38 Chemung Financial Corporation Fixed Income Investor Presentation $
Slide 39: Double Leverage and Interest Coverage
As adjusted for this offering (1) Q1'25 FY 2024 FY 2023 ($ Thousands) $ 254,938 $ 222,746 $ 209,709 $ 185,159 Bank level equity 228,306 228,306 215,309 195,241 Consolidated equity 112% 98% 97% 95% Double leverage ratio Interest Coverage Earnings: $ 6,887 $ 7,687 $ 30,085 $ 31,501 Income from continu
Slide 40: Net Income – Income Statement
For the quarter ended, (Dollars in Thousands) 1Q24 4Q24 1Q25 QoQ(%) YoY(%) Income Statement 9.6% (0.0%) 19,817 19,821 18,089 Net Interest Income NM 98.2% 1,092 551 (2,040) Provision Expense 4.1% (2.8%) 5,889 6,056 5,657 Non Interest Income 1.4% (5.0%) 16,927 17,823 16,698 Non Interest Expense (15.4%
Slide 41: Highly Qualified Board of Directors
Highly Qualified Board of Directors Joseph Meade IV President & CEO, Mercury Corporation Inc. Stephen M. Lounsberry III President, Applied Technology Manufacturing - Prior role as commercial bank internal auditor and VP of a community bank Anders M. Tomson President & CEO Denise V. Gonick Richard E.
Slide 42: Board Oversight Hierarchy of Risk Management
Board Oversight Hierarchy of Risk Management Board Delegation of Risk Oversight Board of Directors Chief Executive Officer and Executive Officers Chief Ris Regulato Depar k Officer / ry Risk tment Business Line Managers Risks Covered Board Committee Business Combination and Executive Integrity Risks
Slide 43: Non-GAAP Reconciliations: Net Interest Margin
Non - GAAP Reconciliations 43 Chemung Financial Corporation Fixed Income Investor Presentation 2019 2020 2021 2022 2023 2024 2025Q1 Net Interest Margin - Fully Taxable Equivalent $ 60,611 $ 62,919 $ 65,589 $ 74,179 $ 74,457 $ 74,059 $ 19,817 Net interest income (GAAP) 403 345 382 425 366 336 80 Full
Slide 44: Non-GAAP Reconciliations: Efficiency Ratio
Non - GAAP Reconciliations 44 Chemung Financial Corporation Fixed Income Investor Presentation (in thousands, except ratio data) Efficiency Ratio As of or for the Quarter Ended, As of or for the Years Ended December 31, 2025Q1 2024 2023 2022 2021 2020 2019 60,611 $ 62,919 $ 65,589 $ 74,179 $ 74,457
Slide 45: Non-GAAP Reconciliations: Tangible Common Equity
Non - GAAP Reconciliations 45 Chemung Financial Corporation Fixed Income Investor Presentation (in thousands, except ratio data) the Quarter Ended, As of or for the Years Ended December 31, Tangible Common Equity (Average) 2025Q1 2024 2023 2022 2021 2020 2019 176,138 $ 193,741 $ 204,239 $ 180,684 $
Slide 46: Non-GAAP Reconciliations: Non-GAAP Net Income
Non - GAAP Reconciliations (in thousands, except ratio data) Non - GAAP Net Income As of or for the Quarter Ended, 2025Q1 As of or for the Years Ended December 31, 2024 2023 2022 2021 2020 2019 15,609 $ 19,262 $ 26,425 $ 28,783 $ 25,000 $ 23,671 $ 6,023 $ Reported net income (GAAP) (14) — — — 29 — —
Chemung Financial — Debt Investor Presentation (June 2025) on 6ix