Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Shareholder Meeting (May 2019)
61 slides from Chemung Financial's shareholder meeting presentation, May 10, 2019
Slide 1: Annual Shareholders Meeting Thursday, May 9, 2019
Annual Shareholders Meeting Thursday, May 9, 2019
Slide 2: Forward-looking Statements
Forward - looking Statements This discussion contains forward - looking statements within the meaning of Section 27 A of the Securities Act, Section 21 E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995 . The Corporation intends its forward - looking statements to be cov
Slide 3: Board of Directors
Board of Directors David J. Dalrymple Anders M. Tomson Larry H. Becker
Slide 4: Board of Directors
Board of Directors Bruce W. Boyea Ronald M. Bentley David M. Buicko
Slide 5: Board of Directors
Board of Directors Stephen M. Lounsberry III Robert H. Dalrymple Denise V. Gonick
Slide 6: Board of Directors
Board of Directors Richard W. Swan G. Thomas Tranter Jr. Jeffrey B. Streeter
Slide 7: Board of Directors
Board of Directors Kevin B. Tully Thomas R. Tyrrell
Slide 8: Thank you, Clover!
Thank you, Clover! Clover M. Drinkwater
Slide 9: Executive Management
Executive Management Anders Tomson , President & CEO
Slide 10: Executive Management
Executive Management Pam Burns Senior Vice President Human Resources Dale Cole Executive Vice President Chief Information Officer Lou DiFabio Executive Vice President Business Client Services
Slide 11: Executive Management
Executive Management Karl Krebs Executive Vice President Chief Financial Officer Kim Hazelton Executive Vice President Retail Client Services Dan Fariello President Capital Bank
Slide 12: Executive Management
Executive Management Duane Mittan Vice President Chief Auditor Kathy McKillip Assistant Vice President Corporate Secretary Karen Makowski Executive Vice President Chief Risk Officer
Slide 13: Executive Management
Executive Management Tom Wirth Executive Vice President Wealth Management Group Mike Wayne Senior Vice President Director of Marketing
Slide 14: Annual Shareholders Meeting Thursday, May 9, 2019
Annual Shareholders Meeting Thursday, May 9, 2019
Slide 15: Anders Tomson, President & CEO
Anders Tomson , President & CEO
Slide 16: 2018 Key Metric Results
2018 Key Metric Results • Record Earnings • Asset Quality • Growth of Capital • Increased Liquidity
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Slide 18: Year Ending 12/31/2018 Total Assets, Loans, Deposits, Equity
Year Ending: 12/31/2018 Total Assets $1.8 billion Total Loans $1.3 billion Total Deposits $1.6 billion Total Shareholders ’ Equity $165 million
Slide 19: 2018 Financial Results: Record Earnings
2018 Financial Results RECORD EARNINGS NET INCOME: $19.6 million EPS: $4.06 Year Ending: 12/31/2018
Slide 20: Return on Average Assets and Equity
1.14% 12.76% Year Ending: 12/31/2018 Return on Average Assets Return on Average Equity
Slide 21: Tangible Book Value
Tangible Book Value 11.8% Year Ending: 12/31/2018 $29.22
Slide 22: Year-end Stock Price
Year - end Stock Price 14.1% $41.31 12/31/2018 $48.10 12/31/2017
Slide 23: Dividends Declared
Dividends Declared $5.0 million $1.04 per share Year Ending: 12/31/2018
Slide 24: Balance Sheet Growth
Balance Sheet Growth
Slide 25: Consumer & Residential Mortgage
Consumer & Residential Mortgage $7,000 $460,000 12/31/2017 $467,000 12/31/2018 In Thousands Average Balances 1.5%
Slide 26: Commercial Loan Portfolio
Commercial Loan Portfolio 7.7% $853,000 12/31/2018 $792,000 12/31/2017 Average Balances $61,000 In Thousands
Slide 27: Commercial Loan Balances
810,000,000 820,000,000 830,000,000 840,000,000 850,000,000 860,000,000 870,000,000 880,000,000 890,000,000 900,000,000 Commercial Loan Balances $843,000,000 $864,000,000 12/31/2017 12/31/2018
Slide 28: Non-Performing Assets
Non - Performing Assets 33.4% $12,828 12/31/2018 $19,264 12/31/2017 In Thousands
Slide 29: Total Deposits
Total Deposits: $ 101.8 million 6.9% Deposit Growth Year Ending: 12/31/2018
Slide 30: Interest Rates
Interest Rates
Slide 31: Benchmark Bond Yields
— US Benchmark Bond - 7 Ye = Yield — US Govt Yield - 10 Yr
Slide 32: Cost of Funds
Cost of Funds CCTC 0.26% Peer Group 0.73% CCTC 0.20% Peer Group 0.52% Year Ending: 12/31/2017 Year Ending: 12/31/2018
Slide 33: Net Interest Margin
Net Interest Margin 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 2014 2015 2016 2017 2018 3.59% 3.46% 3.37% 3.56% 3.72%
Slide 34: Non-Interest Income
Non - Interest Income 12.6% $23,074 12/31/2018 $20,491 12/31/2017 In Thousands
Slide 35: Wealth Management Group
Wealth Management Group $1.8 billion Assets Under Management & Administration Year Ending: 12/31/2018
Slide 36: Operating Costs
Operating Costs 5.6% $56.8 million 12/31/2018 $53.8 million 12/31/2017
Slide 37: Efficiency Ratio
Efficiency Ratio 78.75 76.18 74.43 66.6 0 67.22 60 62 64 66 68 70 72 74 76 78 80 2014 2015 2016 2017 2018 Efficiency Ratio Adjusted
Slide 38: Full-Time Employees
Full - Time Employees 355 360 365 370 375 380 385 390 395 2014 2015 2016 2017 2018 Year Ending 393 377 368 371 374
Slide 39: Income Tax Expense
Income Tax Expense 44.8% $4,009 12/31/2018 $7,262 12/31/2017 In Thousands
Slide 40: Slide 40
Slide 41: Continuing Our Information Technology Strategic Plan
Continuing Our 3 - Year Information Technology Strategic Plan ▪ Focus on our Digital Future ▪ Align Technology and the Business Functions ▪ Focus on Risk Management ▪ Drive Reliable Technology Outcomes ▪ Robotic Process Automation
Slide 42: Expanding Our Digital Services
Expanding Our Digital Services
Slide 43: Industry Banking Channel Usage 2015-2019
Industry “Banking Channel” Usage 2015 - 2019 Graphic: FIS Global PACE Survey
Slide 44: Contact Center
Contact Center • Manages approximately 95,000 calls per year • Client Assistance: • Balances • Transfers • Card users • Digital support • Creating opportunities for: • Cross selling to clients • Outbound calling to clients or prospects
Slide 45: eBanking Users
eBanking Users • Web Banking: 30,216 • Mobile App: 17,900 • Mobile Deposit: 2,749 Year Ending: 12/31/2018
Slide 46: 2018 Website Users
2018 Website Users • Unique Visitors: 556,569 • Sessions: 2,126,870 • Pageviews: 5,503,247 Year Ending: 12/31/2018 Includes both Chemung Canal and Capital Bank Websites.
Slide 47: Distribution Strategy
Distribution Strategy Open in 2018 Consolidated in Q1 2019
Slide 48: Small Business Is Big Business
Small Business Is Big Business Graphic: US Small Business Administration Office of Advocacy 2018 Small Business Profile
Slide 49: Downtown Revitalization Initiatives Update
Downtown Revitalization Initiatives Update Parts of our footprint awarded f unding: • Albany • Auburn • Cortland • Elmira • Owego • Watkins Glen Auburn Mayor Michael Quill speaks about $10 million Downtown Revitalization Competition. Auburnpub.com Governor Cuomo awards Watkins Glen $10 million for r
Slide 50: Downtown Revitalization Initiatives Update
Downtown Revitalization Initiatives Update In Chemung County: • 100 W. Water St. • LECOM • LIBERTAD Project • South Main St. Redevelopment Project • Maple Avenue Apartments 100 West Water Apartments Photo: Park Grove Realty, LLC
Slide 51: Thank you, Tom!
Thank you, Tom! G. Thomas Tranter, Jr.
Slide 52: Supporting our Community
Supporting our Community Achieve | jeer Medical Center | American Cancer Society | American Heart Association | ARCs | Amot Art Museum st Health | Auburn Public Theater | Boy Scouts | Broome County Council of Churches | Buddy Walk Capital City, ission | Capital Region Spe | CareFirst | Career D ‘oun
Slide 53: Chemung Financial Corporation Colleagues
Chemung Financial Corporation Colleagues
Slide 54: Market Challenges & Uncertainties
Market Challenges & Uncertainties • Flat Yield Curve • Margin Compression • Competition for Liquidity • Unpredictable Economic Growth
Slide 55: Congratulations Retirees!
Congratulations Retirees! Dave Wakeman Resource Recovery 31 years of service Barb Jenkins Real Estate Lending 28 years of service Joyce Desarno Montour Falls 29 years of service Libby Courtright Regulatory Risk 25 years of service
Slide 56: Congratulations Retirees!
Congratulations Retirees! Julie Conover Account Services 23 years of service Toni Parker Real Estate Lending 23 years of service Nancy Schierloh Finance Division 23 years of service Patricia Dunn Resource Recovery 22 years of service
Slide 57: Congratulations Retirees!
Congratulations Retirees! Lewann Neifert Real Estate Lending 18 years of service Michael Crimmins Support Services Group 11 years of service Robert Pichette Commercial Loans 14 years of service
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Slide 59: Slide 59
Slide 60: Questions?
—, Questions? WU CAPITAL BANK
Slide 61: Thank you