Chemung Financial Corp · NASDAQ:CHMG
Chemung Financial — Shareholder Meeting (June 2022)
70 slides from Chemung Financial's shareholder meeting presentation, Jun 7, 2022
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Tuesday, June 7, 2022 1
Slide 2: Anders M. Tomson, President & CEO; David J. Dalrymple, Chairman
Anders M. Tomson David J. Dalrymple President & CEO Chairman of the Board 2
Slide 3: Agenda
Agenda • 2021 Overview and Results • 2022 First-Quarter Recap • Key Initiatives & Efforts 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. Larry H. Ronald M. David M. Robert H. Tomson Dalrymple Archibold, Jr. Becker Bentley Buicko Dalrymple Richard E. Denise V. Stephen M. Jeffrey B. G. Thomas Thomas R. Forrestel, Jr. Gonick Lounsberry III Streeter Tranter Jr. Tyrrell 5
Slide 6: Thank you, Larry!
Thank you, Larry! Larry H. Becker 6
Slide 7: 7
7
Slide 8: Year Ending 12/31/2021
Year Ending: 12/31/2021 Total Assets Total Loans Total Deposits Total Shareholders’ Equity $2.4 billion $1.5 billion $2.2 billion $211.5 million 8
Slide 9: Total Shareholders' Equity
Total Shareholders’ Equity $199.7 $211.5 12/31/2020 12/31/2021 $11.8 (In millions) 5.9% 9
Slide 10: Asset Growth
Asset Growth $3,000,000 $2,500,000 $2,418,475 $2,279,451 $2,000,000 $1,707,620 $1,755,343 $1,787,827 $1,500,000 $1,000,000 $500,000 $0 2017 2018 2019 2020 2021 (In thousands) Year Ending: 12/31 10
Slide 11: Capital Growth
Capital Growth $250.0 $211.5 $199.7 $200.0 $182.6 $165.0 $149.8 $150.0 $100.0 $50.0 $0.0 2017 2018 2019 2020 2021 (In millions) Year Ending: 12/31 11
Slide 12: Capital Ratios (Consolidated)
Capital Ratios (Consolidated) 15.00% 13.98% 14.21% 13.14% 13.62% 14.00% 13.00% 11.82% 12.00% 11.00% 10.22% 10.00% 9.40% 8.77% 8.76% 9.00% 8.79% 8.74% 8.00% 9.35% 8.06% 8.02% 7.00% 7.90% 6.00% 2017 2018 2019 2020 2021 Equity to Assets Ratio Tier 1 Leverage Ratio Total Capital to Risk Adjusted Assets
Slide 13: 2021 Financial Results
2021 Financial Results: NET INCOME: $26.4 million EPS: $5.64 Year Ending: 12/31/2021 13
Slide 14: Net Income & EPS
Net Income & EPS $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 2017 2018 2019 2020 2021 Net Income EPS (Net income in thousands) Year Ending: 12/31 14
Slide 15: Average Shares Outstanding
Average Shares Outstanding 4,900 4,869 4,850 4,832 4,800 4,802 4,800 4,750 4,700 4,683 4,650 4,600 4,550 2017 2018 2019 2020 2021 (In thousands) Year Ending: 12/31 15
Slide 16: Return on Average Assets / Return on Average Equity
Return on Average Assets 1.09% Return on Average Equity 12.94% Year Ending: 12/31/2021 16
Slide 17: Return Trends
Return Trends 1.20% 1.14% 12.94% 14.00% 1.10% 1.09% 0.94% 12.00% 1.00% 0.88% 12.76% 10.00% 0.90% 0.80% 8.86% 9.94% 8.00% 0.70% 4.91% 6.00% 0.60% RAA 4.00% 0.50% RAE 0.43% 0.40% 2.00% 2017 2018 2019 2020 2021 Year Ending: 12/31 17
Slide 18: Stock Price
Stock Price $33.95 $46.45 12/31/2020 12/31/2021 $12.50 36.8% 18
Slide 19: Total Shareholder Return
Total Shareholder Return 50.00% 40.16% 40.00% 35.19% 30.00% 20.00% 10.00% 5.40% 0.00% -10.00% -20.00% -11.95% -17.67% -30.00% 2017 2018 2019 2020 2021 Year Ending: 12/31 19
Slide 20: Dividends Declared
Dividends Declared $5.6 million $1.19 per share Year Ending: 12/31/2021 20
Slide 21: Our Pandemic Response
Our Pandemic Response 21
Slide 22: Shareholders, Colleagues
Shareholders Colleagues Chemung Financial Corporation [|@ 22
Slide 23: COVID-19 Pandemic Response: Our Banking Environment
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 23
Slide 24: COVID-19 Pandemic Response: Client Relief Efforts (PPP)
COVID-19 Pandemic Response Client Relief Efforts Paycheck Protection Program (PPP) 2,134 total loans funded for $267.3 million 874 loans funded in 2021 for $77.7 million $185.5 million forgiven as of 12/31/2021 24
Slide 25: COVID-19 Pandemic Response: Forbearance
COVID-19 Pandemic Response Client Relief Efforts Forbearance Represented 15.77% of total loans as of May 31, 2020 As of December 31, 2021, no COVID-related forbearances remained 25
Slide 26: Deposit & Lending Activity
Deposit & Lending Activity 26
Slide 27: Deposit Growth
Deposit Growth Deposit Growth: $117.7 million 5.8% Year Ending: 12/31/2021 27
Slide 28: Deposit Growth
Deposit Growth $2,500,000 $2,155,433 $2,037,774 $2,000,000 $1,569,237 $1,572,138 $1,467,446 $1,500,000 $1,000,000 $500,000 $0 2017 2018 2019 2020 2021 (In thousands) Year Ending: 12/31 28
Slide 29: Deposits by Type
Deposits by Type SAV 13% DDA 34% MMA 31% Time 9% DDA-INT 13% DDA Time DDA-INT MMA SAV Year Ending: 12/31/2021 29
Slide 30: Total Loan Originations
Total Loan Originations $700,000 $603,031 $600,000 $491,489 $500,000 $189,800 $77,700 $383,488 $400,000 $317,193 $280,092 $300,000 $200,000 $100,000 $0 2017 2018 2019 2020 2021 PPP All Other (In thousands) Year Ending: 12/31 30
Slide 31: Loan Origination Activity
Loan Origination Activity $250,000 $227,855 $200,000 $150,000 $103,082 $100,000 $77,483 $60,393 $50,000 $19,105 $3,571 $0 Commercial Residential PPP Indirect Home Equity Direct (In thousands) Year Ending: 12/31/2021 31
Slide 32: Loan Origination Activity
Loan Origination Activity Direct PPP 1% PPP Commercial 16% 31% 33% Commercial Indirect 46% 12% Direct Residential Residential 1% 24% 21% Indirect 8% Home Equity 4% Home Equity 3% Year Ending: 12/31/2020 Year Ending: 12/31/2021 32
Slide 33: Residential Mortgage Production
Residential Mortgage Production $148,019 $103,082 12/31/2020 12/31/2021 $44,937 30.4% (In thousands) 33
Slide 34: Mortgage Production Trend
Mortgage Production Trend $160,000 $148,019 $140,000 $120,000 $103,082 $100,000 $80,000 $60,000 $50,242 $39,297 $33,883 $40,000 $20,000 $0 2017 2018 2019 2020 2021 (In thousands, includes mortgages sold into the secondary market) Year Ending: 12/31 34
Slide 35: Commercial Loan Portfolio
Commercial Loan Portfolio Total Balances $1,085,554 $1,059,849 12/31/2020 12/31/2021 $25,705 2.4% (In thousands) 35
Slide 36: Commercial Loan Portfolio
Commercial Loan Portfolio $150.9 $43.2 $230.3 $218.0 $214.1 $648.8 $716.6 $802.6 2019 2020 2021 Commercial & Industrial / Other Commercial Real Estate Related Paycheck Protection Program (In millions) Year Ending: 12/31 36
Slide 37: Commercial Loan Portfolio
Commercial Loan Portfolio $1,200 $1,085.6 $1,059.9 $43.2 $1,000 $864.0 $879.1 $150.9 $843.3 $800 $600 $400 $200 $0 2017 2018 2019 2020 2021 All Other PPP (In thousands) Year Ending: 12/31 37
Slide 38: Non-Performing Assets
Non-Performing Assets $10,189 $8,227 12/31/2020 12/31/2021 $1,962 19.3% (In thousands) 38
Slide 39: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 1.20% 1.13% 1.04% 1.00% 0.80% 0.73% 0.60% 0.45% 0.40% 0.34% 0.20% 0.00% 2017 2018 2019 2020 2021 Year Ending: 12/31 39
Slide 40: Net Interest Margin
Net Interest Margin 4.00% 3.72% 3.64% 3.56% 3.50% 3.25% 3.00% 2.84% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2017 2018 2019 2020 2021 Year Ending: 12/31 40
Slide 41: Cost of Interest-Bearing Deposits
Cost of Interest-Bearing Deposits Year Ending: 12/31/2020 Year Ending: 12/31/2021 CCTC Peer Group CCTC Peer Group 0.31% 0.60% 0.22% 0.24% 41
Slide 42: Net Interest Income
Net Interest Income $68,000 $65,589 $64,000 $62,919 $60,480 $60,611 $60,000 $56,987 $56,000 $52,000 $48,000 2017 2018 2019 2020 2021 (In thousands) Year Ending: 12/31 42
Slide 43: Wealth Management Group
Wealth Management Group $2.3 Billion Assets Under Management & Administration $11.1 Million Fee Income Year Ending: 12/31/2021 43
Slide 44: Wealth Management Fee Income
Wealth Management Fee Income $12,000 $11,072 $10,000 $9,317 $9,503 $9,492 $8,804 $8,000 $6,000 $4,000 $2,000 $0 2017 2018 2019 2020 2021 (In thousands) Year Ending: 12/31 44
Slide 45: Non-Interest Expense
Non-Interest Expense $55.9 $55.7 12/31/2020 12/31/2021 $0.2 0.5% (In millions) 45
Slide 46: Non-Interest Expense
Non-Interest Expense $60.0 3.50% $50.0 3.00% 2.50% $40.0 2.00% $30.0 1.50% $20.0 1.00% $10.0 0.50% $0.0 0.00% 2017 2018 2019 2020 2021 NIE NIE to Average Assets (In millions) Year Ending: 12/31 46
Slide 47: Employees, Full-Time Equivalent
Employees, Full-Time Equivalent 380 374 371 370 362 360 350 341 340 337 330 320 310 2017 2018 2019 2020 2021 Year Ending: 12/31 47
Slide 48: Efficiency Ratio
Efficiency Ratio 69.0% 68.0% 68.0% 67.2% 67.0% 66.6% 66.0% 65.7% 65.0% 64.0% 63.0% 62.0% 61.7% 61.0% 60.0% 59.0% 58.0% 2017 2018 2019 2020 2021 Year Ending: 12/31 48
Slide 49: Share Repurchase Program
Share Repurchase Program • 250,000 (5 percent) Available to Repurchase • 34,921 shares repurchased • Average cost of $38.55 per share • Increase of $0.52 to EPS since program inception (as of April 2022) 49
Slide 50: 2022 First-Quarter Recap
2022 First-Quarter Recap • Earnings of $6.9 million / $1.46 per share • Loans increased 5.0%, net of PPP • Deposits increased 4.4% • Non-performing loans decreased 5.1% • Represents 0.49% of total loans • Release of $1.2 million in pandemic-related portion of loan-loss allowance 50
Slide 51: Market Challenges & Uncertainties
Market Challenges & Uncertainties • COVID-19 Pandemic • Eastern Europe • Rising Interest Rates • Inflation 51
Slide 52: Key Initiatives & Efforts
Key Initiatives & Efforts • Technology & Customer Experience • Service & Distribution • Community Investment 52
Slide 53: Technology & Customer Experience
Technology & Customer Experience 53
Slide 54: Investing In Our Digital Platform
Investing In Our Digital Platform DocuSign Appointment Scheduling Real-Time Alerts Contactless Debit Cards Personal Budgeting Tools Account-to-Account Transfers Budgeting & Savings Tools 54
Slide 55: Service & Distribution
Service & Distribution 55
Slide 56: Western NY Expansion
Western NY Expansion Loan Balances Over $47 Million Pipeline Future Plans 56
Slide 57: Bath Office
Bath Office 57
Slide 58: Business Banking Refresh
Business Banking Refresh Rename department & titles Promote new Senior Business Banker Expansion of team 58
Slide 59: 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 60: Corporate Responsibility
Corporate Responsibility 60
Slide 61: Community Support Efforts
Community Support Efforts Supported community organizations by: Volunteering over 16,000 hours Distributing nearly $460,000 in donations & sponsorships Providing special corporate matches 61
Slide 62: Community Investment
Community Investment Excellence In Records Information Manage 607.797.7333. 62
Slide 63: 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 64: 64
64
Slide 65: Executive Management
Executive Management Pamela D. Burns L. Dale Cole Peter K. Cosgrove Daniel D. Fariello Kimberly A. Hazelton Scott T. Heffner Senior Vice President Executive Vice President Executive Vice President President Executive Vice President Senior Vice President Director of Human Chief Information Officer Ch
Slide 66: 2021 Retirees
2021 Retirees Kip Carlson Terrie Casey Melissa Gardner Assistant Vice President Relationship Banker II Relationship Banker II Southport Office Seneca Falls Office Bath Office 19 Years of Service 46 Years of Service 26 Years of Service 66
Slide 67: 2021 Retirees
2021 Retirees Jane Leszyk Wendy Neild Tim Rubery Relationship Banker III Teller Senior Vice President Watkins Glen Office Owego Office Commercial Loan Manager 15 Years of Service 13 Years of Service 8 Years of Service 67
Slide 68: 2021 Retirees
2021 Retirees Andrea Seymour Deborah Weir Maureen Willis Vice President Relationship Banker I Relationship Banker III Logistical Support Manager Vestal Office Seneca Falls Office 30 Years of Service 13 Years of Service 40 Years of Service 68
Slide 69: 69
69
Slide 70: Thank You
Thank You