Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Shareholder Meeting (June 2024)
53 slides from Chemung Financial's shareholder meeting presentation, Jun 4, 2024
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING TUESDAY, JUNE 4, 2024
Slide 2: Anders M. Tomson and David J. Dalrymple
Anders M. Tomson David J. Dalrymple President & CEO Chairman of the Board
Slide 3: Agenda
AGENDA Topic Highlights 2023 Overview and Results 2024 Highlights Key Initiatives, Efforts, and Community Support
Slide 4: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This discussion 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 t
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
Slide 6: Happy 190th Anniversary; Nasdaq Listed
HAPPY i 4 190th ANNIVERSARY: CHMG NasdadqListed Nasdaq —
Slide 7: 2023 Challenges
2023 Challenges • Financial Sector Turmoil • Interest Rate Environment • Balance Sheet Impact • Margin Compression
Slide 8: Year Ending 12/31/2023
YEAR ENDING: 12/31/2023 TOTAL ASSETS TOTAL LOANS TOTAL DEPOSITS TOTAL SHAREHOLDERS’ EQUITY $2.7 billion $2.0 billion $2.4 billion $195.2 million
Slide 9: Financial Results
2023 $5.28 FINANCIAL Earnings Per Share RESULTS $25 Million Net Income Year Ending:12/31/2023
Slide 10: Net Income & EPS
NET INCOME & EPS $35,000 $7.00 $30,000 $6.00 $25,000 $5.00 $20,000 $4.00 $15,000 $3.00 $10,000 $2.00 $5,000 $1.00 $0 $0.00 2019 2020 2021 2022 2023 Net Income EPS (Net income in thousands) Year Ending:12/31/2023
Slide 11: Return on Average Assets and Equity
RETURN ON AVERAGE ASSETS: 0.94% RETURN ON AVERAGE EQUITY: 14.11% Year Ending:12/31/2023
Slide 12: Return on Average Assets
RETURN ON AVERAGE ASSETS 1.30% 1.20% 1.15% 1.13% 1.10% 1.15% 1.12% 1.09% 0.94% 0.94% 1.00% 0.88% 0.90% 0.94% 0.94% ROA 0.80% ROA (Peer Median) 0.70% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 13: Return on Average Equity
RETURN ON AVERAGE EQUITY 16.00% 15.93% 15.00% 14.11% 14.00% 12.94% 13.00% 12.00% 12.81% 12.67% 12.03% 11.00% 9.94% 10.00% 10.36% ROE 9.00% 9.48% 8.86% ROE (Peer Median) 8.00% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 14: Asset Growth
ASSET GROWTH $3,000,000 $2,645,553 $2,710,529 $2,500,000 $2,418,475 $2,279,451 $2,000,000 $1,787,827 $1,500,000 $1,000,000 $500,000 $0 2019 2020 2021 2022 2023 (In Thousands) Year Ending:12/31/2023
Slide 15: Total Capital
TOTAL CAPITAL $250.0 $211.5 $199.7 $195.2 $200.0 $182.6 $166.4 $150.0 $100.0 $50.0 $0.0 2019 2020 2021 2022 2023 (In Millions) Year Ending:12/31/2023
Slide 16: Capital Ratios (Consolidated)
CAPITAL RATIOS (CONSOLIDATED) 15.00% 13.62% 14.21% 13.98% 14.00% 13.26% 12.57% 13.00% 12.00% 11.00% 10.22% 10.00% 8.76% 8.74% 9.00% 8.23% 9.35% 8.62% 8.00% 6.29% 7.20% 7.00% 8.06% 7.90% 6.00% 2019 2020 2021 2022 2023 Equity to Assets Ratio Tier 1 Leverage Ratio Total Capital to Risk Weighted Assets
Slide 17: Stock Price
STOCK PRICE $39.00 $50.17 12/31/2022 12/31/2023 $11.17 28.6%
Slide 18: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 50.00% 40.16% 40.00% 38.06% 30.00% 20.00% 17.79% 11.74% 10.00% 5.40% 1.42% 0.00% -3.36% -3.31% -10.00% -20.00% -17.67% -21.20% CFC Peer Median -30.00% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 19: Dividends Declared
DIVIDENDS DECLARED $5.9 million $1.24 per share Year Ending:12/31/2023
Slide 20: Lending & Deposit Activity
‘ LENDING & DEPOSIT ACTIVITY SS
Slide 21: Total Loans
TOTAL LOANS $2,000,000 $1,972,664 $1,829,448 $1,536,463 $1,500,000 $1,311,906 $1,309,219 $1,000,000 $500,000 $0 2019 2020 2021 2022 2023 (In Thousands) Year Ending:12/31/2023
Slide 22: Lending by Region
LENDING BY REGION 5.1% 33.8% 61.2% Chemung Capital Western NY Year Ending:12/31/2023
Slide 23: Total Loan Originations
TOTAL LOAN ORIGINATIONS $700,000 $603,031 $614,947 $600,000 $491,489 $505,487 $500,000 $189,800 $77,700 $400,000 $300,000 $280,092 $200,000 $100,000 $0 2019 2020 2021 2022 2023 PPP All Other (In Thousands) Year Ending:12/31/2023
Slide 24: Loan Origination Activity
LOAN ORIGINATION ACTIVITY Direct 1% Home Equity, Direct, 1% 5% Indirect 23% Indirect, 17% Home Equity Residential, 5% 5% Commercial Residential 60% 11% Commercial, 72% Year Ending:12/31/2022 Year Ending:12/31/2023
Slide 25: Commercial Loan Portfolio Total Balances
COMMERCIAL LOAN PORTFOLIO TOTAL BALANCES $ 1,249,206 $1,387,321 12/31/2022 12/31/2023 $138,115 11.1% (In Thousands)
Slide 26: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO $1,387.3 $1,400 $1,248.5 $1,200 $934.6 $1,016.7 $0.7 $43.2 $1,000 $150.9 $879.1 $800 $600 $400 $200 $0 2019 2020 2021 2022 2023 All Other PPP (In Thousands) Year Ending:12/31/2023
Slide 27: Commercial Loan Portfolio
COMMERCIAL LOAN PORTFOLIO $43.2 $0.7 $0.4 $214.1 $251.5 $264.1 $802.6 $996.9 $1,122.9 2021 2022 2023 Commercial & Industrial Commercial Real- Paycheck Protection / Other Estate Related Program (In Millions) Year Ending:12/31/2023
Slide 28: Non-Performing Assets to Total Assets
NON-PERFORMING ASSETS TO TOTAL ASSETS 1.20% 1.04% 1.00% 0.80% 0.60% 0.45% 0.40% 0.40% 0.34% 0.32% 0.20% 0.00% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 29: Deposit Growth
DEPOSIT GROWTH $102,200 4.4% (In Thousands) Year Ending:12/31/2023
Slide 30: Total Deposits
TOTAL DEPOSITS $2,500,000 $2,429,427 $2,327,227 $2,155,433 $2,037,774 $2,000,000 $1,572,138 $1,500,000 $1,000,000 $500,000 $0 2019 2020 2021 2022 2022 (In Thousands) Year Ending:12/31/2023
Slide 31: Deposits by Region
DEPOSITS BY REGION 5.9% 0.2% 15.7% 78.2% Chemung Capital Western NY Brokered Year Ending:12/31/2023
Slide 32: Deposits by Type
DEPOSITS BY TYPE 3.20% 5.9% 12.00% 10.3% 26.9% 31.50% 27.50% 25.7% 18.1% 14.10% 11.70% 12.0% DDA Time DDA-INT MMA SAV BROKERED DDA Time DDA-INT MMA SAV BROKERED Year Ending:12/31/2022 Year Ending:12/31/2023
Slide 33: Deposits by Division
DEPOSITS BY DIVISION 17.5% 5.9% 42.1% 6.3% 28.2% Consumer Commercial Public ICS/CDARS Brokered Year Ending:12/31/2023
Slide 34: Cost of Funds
Year Ending: COST OF 12/31/2022 CCTC PEER GROUP FUNDS 0.32% 0.36% Year Ending: 12/31/2023 CCTC PEER GROUP 1.59% 1.58% 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 35: Net Interest Margin
NET INTEREST MARGIN 4.00% 3.64% 3.50% 3.25% 3.05% 3.00% 2.84% 2.85% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 36: Net Interest Income
NET INTEREST INCOME $80,000 $75,000 $74,179 $74,457 $70,000 $65,589 $65,000 $62,919 $60,611 $60,000 $55,000 $50,000 $45,000 2019 2020 2021 2022 2023 (In Thousands) Year Ending:12/31/2023
Slide 37: Wealth Management Group
WEALTH MANAGEMENT GROUP $2.2 billion Assets Under Management & Administration $10,460 Fee Income, in Thousands Year Ending:12/31/2023
Slide 38: Wealth Management Fee Income
WEALTH MANAGEMENT FEE INCOME $11,500 $11,072 $11,000 $10,500 $10,460 $10,280 $10,000 $9,503 $9,492 $9,500 $9,000 $8,500 2019 2020 2021 2022 2023 Year Ending:12/31/2023 (In Thousands)
Slide 39: Non-Interest Expense
NON-INTEREST EXPENSE $59.3 $64.2 12/31/2022 12/31/2023 $4.9 8.4% (In Millions)
Slide 40: 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% 2019 2020 2021 2022 2023 NIE NIE to Avg Assets NIE to Avg Assets (Peer Median) (In Millions) Year Ending:12/31/2023
Slide 41: Employees, Full-Time Equivalent
EMPLOYEES, FULL-TIME EQUIVALENT 370 25.0% 362 360 20.0% 20.2% 15.0% 350 13.9% 15.0% 12.8% 12.5% FTEs 341 340 FTEs to Total Assets 340 339 10.0% 337 330 5.0% 320 0.0% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 42: Efficiency Ratio
EFFICIENCY RATIO 70.0% 68.0% 68.0% 66.2% 66.0% 65.7% 64.0% 62.0% 61.7% 61.7% 60.0% 58.0% 2019 2020 2021 2022 2023 Year Ending:12/31/2023
Slide 43: Western NY Expansion
WESTERN NY EXPANSION Highlights Loan Volume Williamsville New Brand
Slide 44: Western NY Expansion
fo YW. WESTERN NY EXPANSION
Slide 45: Technology & Customer Experience
TECHNOLOGY & CUSTOMER EXPERIENCE
Slide 46: 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 47: Community Support
COMMUNITY SUPPORT Our 2023 Giving in Action $559,000 Including $52,342 From employee contributions Given in support of our communities 165 10,442 Employee Volunteers Hours Volunteered Over 400 organizations supported across our county footprint 14
Slide 48: Community Support in Action
COMMUNITY SUPPORT IN ACTION
Slide 49: Supporting Our Community
SUPPORTING OUR COMMUNITY Achieve | Albany Medical Center | American Cancer Society American Heart Association | ARCs | Arnot Art Museum | Arnot Health Auburn Public Theater | Boy Scouts | Broome County Council of Churches Buddy Walk | Capital City Rescue Mission | Capital Region Sponsor-A-Scholar Ca
Slide 50: 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 51: New Executive Management Team Members
NEW EXECUTIVE MANAGEMENT TEAM MEMBERS Dale M. McKim III Monica L. Ridosh Executive Vice President Senior Vice President Chief Financial Officer & Treasurer Director of Human Resources
Slide 52: Key Strategies
KEY STRATEGIES • Revenue Growth • Operating Efficiencies • Customer Experience • Colleague & Community Support
Slide 53: Thank You
Thank You