Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Shareholder Meeting (June 2021)
64 slides from Chemung Financial's shareholder meeting presentation, Jun 7, 2021
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Tuesday, June 8, 2021
Slide 2: President & CEO and Chairman of the Board
Anders M. Tomson President & CEO David J. Dalrymple Chairman of the Board 2
Slide 3: 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 covere
Slide 4: Board of Directors
Board of Directors David J. Dalrymple Anders M. Tomson Larry H. Becker Ronald M. Bentley Raimundo C. Archibold , Jr. Stephen M. Lounsberry III Robert H. Dalrymple Denise V. Gonick Richard E. Forrestel , Jr. David M. Buicko 4 Richard W. Swan G. Thomas Tranter Jr. Jeffrey B. Streeter Thomas R. Tyrrell
Slide 5: Thank you, Rich!
Thank you, Rich! Richard W. Swan 5
Slide 6: Welcome New Directors!
Welcome New Directors! 6 Raimundo C. Archibold , Jr. Richard E. Forrestel , Jr.
Slide 7: Executive Management
Executive Management 7 Pamela D. Burns Senior Vice President Human Resources L. Dale Cole Executive Vice President Chief Information Officer Peter K. Cosgrove Executive Vice President Chief Credit Officer Daniel D. Fariello President Capital Bank Division Kimberly A. Hazelton Executive Vice Presiden
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Slide 9: Results & Initiatives
Results & Initiatives • COVID - 19 Pandemic Response • 2020 Overview and Results • Corporate Realignments • First - Quarter 2021 9
Slide 10: Our Pandemic Response
Our Pandemic Response 10
Slide 11: Chemung Financial Corporation Colleagues
Chemung Financial Corporation Colleagues
Slide 12: COVID-19 Pandemic Response: Our Banking Environment
▪ Adhere to CDC and DOH guidelines ▪ Remain open for essential banking services ▪ Provide a safe environment for employees and customers 12 COVID - 19 Pandemic Response Our Banking Environment
Slide 13: COVID-19 Pandemic Response: Client Relief Efforts
▪ Waived or refunded over $30,000 in fees ▪ Provided short - term loan forbearance ▪ 1,064 customers for $211.2 million ▪ Processed over 57,000 Economic Impact Payments for $95.8 million ▪ Offered uninterrupted banking services COVID - 19 Pandemic Response Client Relief Efforts 13
Slide 14: Client Relief Efforts: Paycheck Protection Program
COVID - 19 Pandemic Response Client Relief Efforts 14 ▪ Paycheck Protection Program (PPP) ▪ Phase 1 ▪ 1,260 loans made for $189.8 million ▪ Phase 2 ▪ 874 loans funded for $ 77.5 million
Slide 15: Client Relief Efforts: Retirement Plans
▪ Provided advice in a declining market ▪ Consulted on 401(k) strategies ▪ CARES Act for Retirement Plan Participants & Sponsors ▪ Required Minimum Distributions Waived ▪ Hardship distributions up to $100,000 COVID - 19 Pandemic Response Client Relief Efforts 15
Slide 16: Community Relief Efforts
▪ Supported community organizations by ▪ Volunteering over 10,000 hours ▪ Distributing nearly $450,000 in donations & sponsorships ▪ Providing special corporate matches COVID - 19 Pandemic Response Community Relief Efforts 16
Slide 17: Supporting our Community
Supporting our Community Achieve | Albany Medical Center | American Cancer Society American Heart Association | ARCs | Amot Art Musoum | Arnot Health | Boy Scouts | Walk | l CaroFirst | Caroor Development Council Community Foundations | Coming Community Cal Disabled American Votorans | El Food Banko
Slide 18: Year Ending 12/31/2020 Key Balances
Year Ending: 12/31/2020 Total Assets $2.3 billion Total Loans $1.5 billion Total Deposits $2.0 billion Total Shareholders’ Equity $200 million 18
Slide 19: Total Shareholders' Equity
$17.1 9.3 % $199.7 12/31/2020 $182.6 12/31/2019 Total Shareholders’ Equity (In millions) 19
Slide 20: Capital Growth
Capital Growth Year Ending: 12/31 20 $143.7 $149.8 $165.0 $182.6 $199.7 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2016 2017 2018 2019 2020 (In millions)
Slide 21: Asset Growth
Asset Growth Year Ending: 12/31 21 $1,657,179 $1,707,620 $1,755,343 $1,787,827 $2,279,451 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2016 2017 2018 2019 2020 (In thousands )
Slide 22: Capital Ratios (Consolidated)
Capital Ratios (Consolidated) 22 8.67% 8.77% 9.40% 10.22% 8.76% 7.81% 8.02% 8.79% 9.35% 7.90% 12.14% 11.82% 13.14% 13.98% 13.62% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 2016 2017 2018 2019 2020 Equity to Assets Ratio Tier 1 Leverage Ratio Total Capital to Risk Adjusted Asse
Slide 23: 2020 Financial Results
NET INCOME: $19.3 million EPS: $4.01 Year Ending: 12/31/2020 2020 Financial Results: 23
Slide 24: Net Income & EPS
Year Ending: 12/31 24 Net Income & EPS $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2016 2017 2018 2019 2020 Net Income EPS (Net income in thousands)
Slide 25: Return on Average Assets and Equity
0.94% 9.94% Year Ending: 12/31/2020 Return on Average Assets Return on Average Equity 25
Slide 26: Stock Price
$8.55 20.1% $33.95 12/31/2020 $42.50 12/31/2019 Stock Price 26
Slide 27: Dividends Declared
$5.0 million $1.04 per share Year Ending: 12/31/2020 Dividends Declared 27
Slide 28: 2020 Key Initiatives
• Deposit & Lending Activity • Technology Enhancements • Growth & Consolidation • Operating Efficiencies • Share Repurchase Program • Continued Community Investment 2020 Key Initiatives 28
Slide 29: Deposit Growth
Deposit Growth: $465.6 million 29.6% Year Ending: 12/31/2020 Deposit Growth 29
Slide 30: Deposit Growth
Deposit Growth Year Ending: 12/31 30 $1,456,343 $1,467,446 $1,569,237 $1,572,138 $2,037,774 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2016 2017 2018 2019 2020 (In thousands )
Slide 31: Deposits by Type
Deposits by Type Year Ending: 12/31 31 DDA 30% Time 14% DDA - INT 14% MMA 30% SAV 12% 2020 DDA Time DDA-INT MMA SAV DDA 30% Time 10% DDA - INT 13% MMA 34% SAV 13% 2019 DDA Time DDA-INT MMA SAV
Slide 32: Total Loan Originations
Total Loan Originations Year Ending: 12/31 32 $302,699 $383,488 $317,193 $280,092 $603,031 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2016 2017 2018 2019 2020 (In thousands )
Slide 33: Loan Origination Activity
Loan Origination Activity 2019 Total: $267,599 2018 Total: $299,072 Year Ending: 12/31/2019 Year Ending: 12/31/2020 33 Commercial 56% Residential 18% Home Equity 6% Indirect 18% Direct 2% Commercial 33% Residential 24% Home Equity 3% Indirect 8% Direct 1% PPP 31%
Slide 34: Residential Mortgage Production
Residential Mortgage Production 34 (In thousands) $97,777 194.6% $148,019 12/31/2020 $50,242 12/31/2019
Slide 35: Commercial Loan Portfolio
23.5% $1,085,554 12/31/2020 $879,086 12/31/2019 Total Balances $206,468 Commercial Loan Portfolio (In thousands) 35
Slide 36: Commercial Loan Portfolio
Commercial Loan Portfolio 2018 2019 2020 $746.1 $188.6 Year Ending: 12/31 Commercial & Industrial / Other Commercial Real Estate Related (In millions) 36 $711.5 $152.5 $688.8 $190.2 $150.9 Paycheck Protection Program
Slide 37: Non-Performing Assets
$8,336 45.0 % $10,189 12/31/2020 $18,525 12/31/2019 Non - Performing Assets (In thousands) 37
Slide 38: Non-Performing Assets to Total Assets
Non - Performing Assets to Total Assets Year Ending: 12/31 38 0.75% 1.13% 0.73% 1.04% 0.45% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2016 2017 2018 2019 2020
Slide 39: Net Interest Margin
Net Interest Margin Year Ending: 12/31 39 3.37% 3.56% 3.72% 3.64% 3.25% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 2016 2017 2018 2019 2020
Slide 40: Cost of Interest-Bearing Deposits vs Peer Group
CCTC 0.31% Peer Group 0.60% Year Ending: 12/31/2019 Year Ending: 12/31/2020 Cost of Interest - Bearing Deposits 40 CCTC 0.56% Peer Group 1.01%
Slide 41: Net Interest Income
Net Interest Income (In thousands) Year Ending: 12/31 41 $52,329 $56,987 $60,480 $60,611 $62,919 $44,000 $48,000 $52,000 $56,000 $60,000 $64,000 2016 2017 2018 2019 2020
Slide 42: Wealth Management Group
$2.1 Billion Assets Under Management & Administration $9.5 Million Fee Income Year Ending: 12/31/2020 Wealth Management Group 42
Slide 43: Wealth Management Fee Income
Wealth Management Fee Income (In thousands) Year Ending: 12/31 43 $8,316 $8,804 $9,317 $9,503 $9,492 $7,600 $8,000 $8,400 $8,800 $9,200 $9,600 2016 2017 2018 2019 2020
Slide 44: S&P Level % Change
S&P 500 Level % Change 15.00% 30.00% Jan ‘20 Apr'20 Jul '20
Slide 45: Distribution Strategy
Distribution Strategy Opened in 2021 • Clarence Consolidated in 2020 • Big Flats • Tioga, Owego • Towanda 45
Slide 46: Western NY Expansion
Western NY Expansion ee ‘Chemung Canal Pa ic; = Trust Company E %
Slide 47: Enhancing Our Digital Platform
▪ Continued Focus on our Digital Future ▪ Introduced Zelle ® - Secure P2P Payment Option in Mobile Banking ▪ Mobile Deposit Enhancements ▪ PPP Processing & Forgiveness ▪ Robotic Process Automation Enhancing Our Digital Platform 47
Slide 48: Non-Interest Expense
$0.2 0.4 % $ 55.9 12/31/2020 $ 55.7 12/31/2019 Non - Interest Expense 48 (In millions)
Slide 49: Non-Interest Expense
Non - Interest Expense Year Ending: 12/31 49 (In millions) 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2016 2017 2018 2019 2020 NIE NIE to Average Assets
Slide 50: Employees, Full-Time Equivalent
Employees, Full - Time Equivalent Year Ending: 12/31 50 368 371 374 362 341 320 330 340 350 360 370 380 2016 2017 2018 2019 2020
Slide 51: Efficiency Ratio
51 Efficiency Ratio 74.4% 66.6% 67.2% 68.0% 65.7% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0% 74.0% 76.0% 2016 2017 2018 2019 2020 Year Ending: 12/31
Slide 52: Share Repurchase Programs
Share Repurchase Programs 52 • 2020 • Repurchased 250,000 shares (approximately 5% of outstanding shares) • Average cost of $29.40 per share • 2021 • 20,625 shares repurchased as of May 31 • Average cost of $34.98 per share • Impact • Increase of $0.19 to EPS as of April 30
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Slide 54: 2021 First-Quarter Recap
2021 First - Quarter Recap 54 • Loans increased 2.90% • Non - performing loans decreased 7.00 % • Represents 0.59% of total loans • Unadjusted efficiency ratio decreased to 62.38% • 69.72% in fourth - quarter 2020 • Continued margin compression • Earnings of $6.5 million / $1.39 per share
Slide 55: Corporate Responsibility
Corporate Responsibility 55 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. The va
Slide 56: Corporate Responsibility
Corporate Responsibility 56
Slide 57: 2020 Retirees
2020 Retirees Yvonne Albee Vice President Regulatory Risk 39 years of service Lou DiFabio Executive Vice President Business Client Services 32 years of service Sally Breault Relationship Banker III Horseheads Office 24 years of service Mary Ellen Fenderson Relationship Banker II Bath Office 19 years
Slide 58: 2020 Retirees
2020 Retirees Maryanne Kalec Senior Vice President Retail Lending 23 years of service John Sentigar Vice President Information Technology 15 years of service Jack Narosky Assistant Vice President Business Client Services 7 years of service Mike Wayne Senior Vice President Director of Marketing 14 ye
Slide 59: Corporate Realignments
59 Corporate Realignments • Executive Management Team • Market Teams
Slide 60: New Executive Management Team Members
New Executive Management Team Members 60 Jeffrey P. Kenefick Regional President Chemung Canal Division Scott T. Heffner Vice President Director of Marketing
Slide 61: Market Team Realignment
Market Team Realignment 61 Broome, Tioga and Bradford • Canton • Binghamton • Owego • Troy • Waverly • Vestal Capital Region • Albany • Clifton Park • Latham • Schenectady • Slingerlands • Wilton • Wolf Road Southern Tier • Bath • Clarence • Corning • Elmira • Elmira Heights • Horseheads • Southport
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Slide 63: Thank You
THANK YOU
Slide 64: Annual Meeting of Shareholders
Annual Meeting of Shareholders Tuesday, June 8, 2021