Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Shareholder Meeting (June 2023)
58 slides from Chemung Financial's shareholder meeting presentation, Jun 6, 2023
Slide 1: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS TUESDAY, JUNE 6, 2023
Slide 2: President & CEO and Chairman of the Board
Anders M. Tomson David J. Dalrymple President & CEO Chairman of the Board 2
Slide 3: Agenda
AGENDA • 2022 Overview and Results • 2023 Highlights • Key Initiatives, Efforts & Community Support 3
Slide 4: Forward-Looking Statements
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 s
Slide 5: Board of Directors
BOARD OF DIRECTORS Anders M. David J. Raimundo C. Ronald M. David M. Robert H. Richard E. Tomson Dalrymple Archibold, Jr. Bentley Buicko Dalrymple Forrestel, Jr. Denise V. Stephen M. Joseph F. Jeffrey B. G. Thomas Thomas R. Gonick Lounsberry III Meade IV Streeter Tranter Jr. Tyrrell 5
Slide 6: Shareholders
Wy wuuee Shareholders | { Chemung ( Financial Corporation
Slide 7: Year Ending 12/31/2022 Key Figures
YEAR ENDING: 12/31/2022 TOTAL ASSETS TOTAL LOANS TOTAL DEPOSITS TOTAL SHAREHOLDERS’ EQUITY $2.6 billion $1.8 billion $2.3 billion $166.4 million 7
Slide 8: 2022 Financial Results
2022 FINANCIAL RESULTS: NET INCOME: $28.8 million EPS: $6.13 Year Ending: 12/31/22 8
Slide 9: Net Income & EPS
NET INCOME & EPS $30,000 $7.00 $25,000 $6.00 $5.00 $20,000 $4.00 $15,000 $3.00 $10,000 $2.00 $5,000 $1.00 $0 $0.00 2018 2019 2020 2021 2022 Net Income EPS Year Ending: 12/31 9 (Net income in thousands)
Slide 10: Return on Average Assets and Equity
RETURN ON AVERAGE ASSETS: 1.15% RETURN ON AVERAGE EQUITY: 15.93% Year Ending: 12/31/2022 10
Slide 11: Return Trends
RETURN TRENDS 1.20% 1.09% 1.15% 18.00% 1.14% 1.10% 16.00% 0.94% 15.93% 1.00% 12.76% 14.00% 0.88% 0.90% 12.00% 12.94% 0.80% 10.00% 0.70% 9.94% 8.00% 0.60% 8.86% 6.00% ROA 0.50% ROE 4.00% 0.40% 2.00% 2018 2019 2020 2021 2022 Year Ending: 12/31 11
Slide 12: Asset Growth
ASSET GROWTH $3,000,000 $2,645,553 $2,500,000 $2,418,475 $2,279,451 $2,000,000 $1,755,343 $1,787,827 $1,500,000 $1,000,000 $500,000 $0 2018 2019 2020 2021 2022 (In thousands) Year Ending: 12/31 12
Slide 13: Total Capital
TOTAL CAPITAL $250.0 $211.5 $199.7 $200.0 $182.6 $165.0 $166.4 $150.0 $100.0 $50.0 $0.0 2018 2019 2020 2021 2022 (In millions) Year Ending: 12/31 13
Slide 14: Capital Ratios (Consolidated)
CAPITAL RATIOS (CONSOLIDATED) 15.00% 13.98% 14.21% 13.62% 14.00% 13.14% 12.57% 13.00% 12.00% 11.00% 10.22% 10.00% 9.40% 8.76% 9.00% 8.74% 8.00% 8.79% 8.23% 9.35% 8.06% 7.00% 7.90% 6.00% 6.29% 2018 2019 2020 2021 2022 Equity to Assets Ratio Tier 1 Leverage Ratio Total Capital to Risk Adjusted Assets
Slide 15: Average Shares Outstanding
AVERAGE SHARES OUTSTANDING 4,900 4,869 4,850 4,832 4,802 4,800 4,750 4,683 4,693 4,700 4,650 4,600 4,550 2018 2019 2020 2021 2022 (In thousands) Year Ending: 12/31 15
Slide 16: Stock Price
STOCK PRICE $46.45 $45.87 12/31/2021 12/31/2022 $0.58 1.3% 16
Slide 17: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 50.00% 40.16% 40.00% 30.00% 20.00% 10.00% 5.40% 1.42% 0.00% -10.00% -20.00% -11.95% -17.67% -30.00% 2018 2019 2020 2021 2022 Year Ending: 12/31 17
Slide 18: Dividends Declared
DIVIDENDS DECLARED $5.8 million $1.24 per share Year Ending: 12/31/2022 18
Slide 19: Lending & Deposit Activity
LENDING & DEPOSIT ACTIVITY 19
Slide 20: Total Loan Originations
TOTAL LOAN ORIGINATIONS $700,000 $603,031 $614,947 $600,000 $491,489 $500,000 $189,800 $77,700 $400,000 $317,193 $280,092 $300,000 $200,000 $100,000 $0 2018 2019 2020 2021 2022 PPP All Other (In thousands) Year Ending: 12/31 20
Slide 21: Loan Origination Activity
LOAN ORIGINATION ACTIVITY $400,000 $366,297 $350,000 $300,000 $250,000 $200,000 $144,081 $150,000 $100,000 $69,860 $50,000 $29,411 $5,298 $0 Commercial Residential Indirect Home Equity Direct (In thousands) Year Ending: 12/31/2022 21
Slide 22: Loan Origination Activity
LOAN ORIGINATION ACTIVITY Direct 1% Direct Home Equity 1% PPP 5% Indirect 16% Commercial 23% Indirect 46% 12% Commercial Residential 60% 11% Residential 21% Home Equity 4% Year Ending: 12/31/2021 Year Ending: 12/31/2022 22
Slide 23: Residential Mortgage Production
RESIDENTIAL MORTGAGE PRODUCTION $103,082 $69,860 12/31/2021 12/31/2022 $33,222 32.2% (In thousands) 23
Slide 24: Mortgage Production Trend
MORTGAGE PRODUCTION TREND $160,000 $148,639 $140,000 $120,000 $103,082 $100,000 $80,000 $69,860 $60,000 $50,242 $40,000 $33,883 $20,000 $0 2018 2019 2020 2021 2022 (In thousands, includes mortgages sold into the secondary market) Year Ending: 12/31 24
Slide 25: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO TOTAL BALANCES $1,059,849 $1,249,206 12/31/2021 12/31/2022 $189,357 17.9% (In thousands) 25
Slide 26: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO $150.9 $43.2 $0.7 $218.0 $214.1 $251.5 $716.6 $802.6 $996.9 2020 2021 2022 Commercial & Industrial / Other Commercial Real Estate Related Paycheck Protection Program (In millions) Year Ending: 12/31 26
Slide 27: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO $1,400 $1,249.2 $1,200 $1,085.5 $1,059.9 $0.7 $1,000 $864.0 $879.1 $150.9 $43.2 $800 $600 $400 $200 $0 2018 2019 2020 2021 2022 All Other PPP (In thousands) Year Ending: 12/31 27
Slide 28: Paycheck Protection Program
PAYCHECK PROTECTION PROGRAM 2,148 total loans funded for $273.3 million Median loan size - $20,833 60% of loans were less than $50,000 Over 20,000 jobs protected 28
Slide 29: Non-Performing Assets
NON-PERFORMING ASSETS $8,227 $8,373 12/31/2021 12/31/2022 $146 1.8% (In thousands) 29
Slide 30: Non-Performing Assets to Total Assets
NON-PERFORMING ASSETS TO TOTAL ASSETS 1.20% 1.04% 1.00% 0.80% 0.73% 0.60% 0.45% 0.40% 0.34% 0.32% 0.20% 0.00% 2018 2019 2020 2021 2022 Year Ending: 12/31 30
Slide 31: Deposit Growth
DEPOSIT GROWTH $171.8 million 8.0% 31 Year Ending: 12/31/2022
Slide 32: Deposit Growth
DEPOSIT GROWTH $2,500,000 $2,327,227 $2,155,433 $2,037,774 $2,000,000 $1,569,237 $1,572,138 $1,500,000 $1,000,000 $500,000 $0 2018 2019 2020 2021 2022 (In thousands) Year Ending: 12/31 32
Slide 33: Deposits by Type
DEPOSITS BY TYPE BROKERED SAV 3% 12% DDA 31% MMA 28% Time 14% DDA-INT 12% DDA Time DDA-INT MMA SAV BROKERED Year Ending: 12/31/2022 33
Slide 34: Cost of Deposits
COST OF DEPOSITS YEAR ENDING: 12/31/2021 YEAR ENDING: 12/31/2022 CCTC PEER GROUP CCTC PEER GROUP 0.15% 0.17% 0.30% 0.28% Obtained from S&P Global Market Intelligence. Formula used is Total Interest Expense on Deposits divided by the sum of average interest bearing deposits plus non interest bearing
Slide 35: Cost of Funds
COST OF FUNDS YEAR ENDING: 12/31/2021 YEAR ENDING: 12/31/2022 CCTC PEER GROUP CCTC PEER GROUP 0.16% 0.26% 0.32% 0.36% Peer Group data represents the median. Obtained from S&P Global Market Intelligence. The percentage is the total interest expense as a percent of the sum of average interest bearing
Slide 36: Net Interest Margin
NET INTEREST MARGIN 4.00% 3.72% 3.64% 3.50% 3.25% 3.05% 3.00% 2.84% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2018 2019 2020 2021 2022 Year Ending: 12/31 36
Slide 37: Net Interest Income
NET INTEREST INCOME $80,000 $75,000 $74,179 $70,000 $65,589 $65,000 $62,919 $60,480 $60,611 $60,000 $55,000 $50,000 $45,000 2018 2019 2020 2021 2022 (In thousands) Year Ending: 12/31 37
Slide 38: Wealth Management Group
WEALTH MANAGEMENT GROUP $2.1 Billion Assets Under Management & Administration $10.3 Million Fee Income 38 Year Ending: 12/31/2022
Slide 39: Wealth Management Fee Income
WEALTH MANAGEMENT FEE INCOME $11,500 $11,072 $11,000 $10,500 $10,280 $10,000 $9,503 $9,492 $9,500 $9,317 $9,000 $8,500 $8,000 2018 2019 2020 2021 2022 (In thousands) Year Ending: 12/31 39
Slide 40: Non-Interest Expense
NON-INTEREST EXPENSE $55.7 $59.3 12/31/2021 12/31/2022 $3.6 6.5% (In millions) 40
Slide 41: Non-Interest Expense
NON-INTEREST EXPENSE $70.0 3.50% $60.0 3.00% $50.0 2.50% $40.0 2.00% $30.0 1.50% $20.0 1.00% $10.0 0.50% $0.0 0.00% 2018 2019 2020 2021 2022 NIE NIE to Average Assets (In millions) Year Ending: 12/31 41
Slide 42: Employees, Full-Time Equivalent
EMPLOYEES, FULL-TIME EQUIVALENT 380 374 370 362 360 350 341 340 340 337 330 320 310 2018 2019 2020 2021 2022 Year Ending: 12/31 42
Slide 43: Efficiency Ratio
EFFICIENCY RATIO 70.0% 68.0% 68.0% 67.2% 66.0% 65.7% 64.0% 62.0% 61.7% 61.7% 60.0% 58.0% 2018 2019 2020 2021 2022 Year Ending: 12/31 43
Slide 44: 2023 First-Quarter Highlights
2023 FIRST-QUARTER HIGHLIGHTS • Earnings of $7.3 million / $1.54 per share • Loans increased 2.4%* • Net interest income increased 19.6% YoY • Non-performing loans decreased 5.5%* *Compared to 12/31/2022 44
Slide 45: Market Challenges & Uncertainties
MARKET CHALLENGES & UNCERTAINTIES • Banking Crisis • How we are different • Rising Interest Rates • Inflation • Recession Uncertainty 45
Slide 46: Service & Distribution
alll SERVICE & DI IBUTION 4 |
Slide 47: Technology & Customer Experience
TECHNOLOGY & CUSTOMER EXPERIENCE 47
Slide 48: Western NY Expansion
WESTERN NY EXPANSION Loan Balances Over $80 Million Pipeline Future Plans 48
Slide 49: Corporate Responsibility Statement
CORPORATE RESPONSIBILITY STATEMENT We embrace our corporate responsibility and commit to fully supporting every community within our footprint. This responsibility requires inclusion, volunteerism, financial support, thoughtful partnerships and the responsible management of our environmental impact.
Slide 50: Community Support Efforts
COMMUNITY SUPPORT EFFORTS Supported community organizations by: Volunteering over 8,000 hours Distributing nearly $550,000 in donations & sponsorships 50
Slide 51: Community Investment
COMMUNITY INVESTMENT 51
Slide 52: Supporting Our Community
. ree eee OM ee ‘Sidney Albert Jewish Community Center | SPCA | St. Peter's Hospital _United Health Services | Youth Sports Leagues | YMCA & YWCA z SUPPORTING OUR COMMUNITY ia Achieve | Albany Medical Center | American Cancer Society American Heart Association | ARCs | Arnot Art Museum | Arnot Healt
Slide 53: Executive Management
EXECUTIVE MANAGEMENT L. Dale Cole Peter K. Cosgrove Daniel D. Fariello Kimberly A. Hazelton Scott T. Heffner Jeffrey P. Kenefick Executive Vice President Executive Vice President President Executive Vice President Senior Vice President Regional President Chief Information Officer Chief Credit Office
Slide 54: 2022 Retirees
2022 RETIREES Dawn Aubin Vicki Harkins Sandy Simons-Smith Vice President Vice President Business Services Specialist Auburn Offices Prestige Banking Business Services Group 46 Years of Service 27 Years of Service 26 Years of Service 54
Slide 55: 2022 Retirees
2022 RETIREES Shari Silvestri Gail Whitaker Relationship Banker II Operations Services Vestal Office Account Services 18 Years of Service 30 Years of Service 55
Slide 56: 2023 Executive Management Retirees
2023 EXECUTIVE MANAGEMENT RETIREES Pam Burns Karl Krebs Senior Vice President Executive Vice President Director of Human Resources Chief Financial Officer & Treasurer & Chief Diversity Officer 56
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Slide 58: Thank You!
Thank You!