Chemung Financial Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Chemung Financial Corp has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

CHEMUNG FINANCIAL CORP (CHMG) filed a Annual Report (10-K) with the SEC on March 13, 2024. Chemung Financial Corp filed its 2023 Form 10-K on March 13, 2024. The filing covers the fiscal year ending December 31, 2023. The company's primary business is commercial banking. The SEC filing number is 001-35741. The company is incorporated in New York.

Why It Matters

For investors and stakeholders tracking CHEMUNG FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Chemung Financial Corp's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. As a publicly traded entity, Chemung Financial Corp is required to disclose detailed financial information annually, ensuring transparency and compliance with SEC regulations, which is vital for maintaining investor confidence and market integrity.

Risk Assessment

Risk Level: medium — CHEMUNG FINANCIAL CORP shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as evidenced by the standard risks associated with financial institutions.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Chemung Financial Corp's performance and potential challenges in the banking industry.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-13 — Filing Date (FILED AS OF DATE)
• 6077373711 — Business Phone (BUSINESS PHONE)
• 001-35741 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• CHEMUNG FINANCIAL CORP (company) — FILER
• CHMG (company) — Ticker Symbol
• 10-K (document) — FORM TYPE
• 2024-03-13T00:00:00.000Z (date) — FILED AS OF DATE
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• NY (location) — STATE OF INCORPORATION
• 6077373711 (phone) — BUSINESS PHONE
• 001-35741 (identifier) — SEC FILE NUMBER

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in a highly regulated industry, subject to federal and state banking laws and regulations, which can impact its operations and profitability.
• Economic Conditions [medium — market]: Changes in national and local economic conditions, including interest rate fluctuations and credit market conditions, can adversely affect the company's financial performance.
• Cybersecurity Risks [medium — operational]: The company is exposed to risks associated with cybersecurity threats and data breaches, which could disrupt operations and damage its reputation.
• Credit Risk [medium — financial]: The company faces credit risk from its loan portfolio, and a significant increase in loan defaults could negatively impact its financial results.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 2023 10-K filing.

Key Financial Figures

• $0.01 — ich registered Common Stock, Par Value $0.01 Per Share CHMG Nasdaq Stock Market, LLC
• $64.4 million — me of the acquisition, the Bank assumed $64.4 million in deposits and acquired $12.6 million
• $12.6 million — $64.4 million in deposits and acquired $12.6 million in loans. On May 29, 2009, the Corpor
• $81.1 million — of the merger, Canton Bancorp, Inc. had $81.1 million in assets, $58.8 million in loans and $
• $58.8 million — corp, Inc. had $81.1 million in assets, $58.8 million in loans and $72.9 million in deposits.
• $72.9 million — n in assets, $58.8 million in loans and $72.9 million in deposits. On April 8, 2011, the Cor
• $254.4 million — he time of the merger, Capital Bank had $254.4 million in assets, $170.7 million in loans and
• $170.7 million — ital Bank had $254.4 million in assets, $170.7 million in loans and $199.2 million in deposits
• $199.2 million — in assets, $170.7 million in loans and $199.2 million in deposits. On November 23, 2013, the
• $177.7 million — e transaction, the Corporation acquired $177.7 million in deposits and $1.2 million in loans.
• $1.2 million — acquired $177.7 million in deposits and $1.2 million in loans. As of April 2, 2021, the Cor
• $2.711 billion — and organic growth, the Corporation had $2.711 billion in consolidated assets, $1.973 billion
• $1.973 billion — $2.711 billion in consolidated assets, $1.973 billion in loans, $2.429 billion in deposits, a
• $2.429 billion — idated assets, $1.973 billion in loans, $2.429 billion in deposits, and $195.2 million in shar
• $195.2 million — loans, $2.429 billion in deposits, and $195.2 million in shareholders' equity at December 31,

Filing Documents

• chmg-20231231.htm (10-K) — 4832KB
• chmg10k123123exh10_4.htm (EX-10.4) — 37KB
• chmg10k123123exh21.htm (EX-21) — 4KB
• chmg10k123123exh23.htm (EX-23) — 2KB
• chmg10k123123exh31_1.htm (EX-31.1) — 8KB
• chmg10k123123exh31_2.htm (EX-31.2) — 9KB
• chmg10k123123exh32_1.htm (EX-32.1) — 3KB
• chmg10k123123exh32_2.htm (EX-32.2) — 3KB
• chmg10k123123exh97.htm (EX-97) — 32KB
• chmg-20231231_g1.jpg (GRAPHIC) — 163KB
• chmg-20231231_g2.jpg (GRAPHIC) — 150KB
• chmg-20231231_g3.jpg (GRAPHIC) — 9KB
• 0000763563-24-000043.txt (&nbsp;) — 24709KB
• chmg-20231231.xsd (EX-101.SCH) — 106KB
• chmg-20231231_cal.xml (EX-101.CAL) — 197KB
• chmg-20231231_def.xml (EX-101.DEF) — 711KB
• chmg-20231231_lab.xml (EX-101.LAB) — 1363KB
• chmg-20231231_pre.xml (EX-101.PRE) — 1061KB
• chmg-20231231_htm.xml (XML) — 5310KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 20 Item 1B. Unresolved Staff Comments 30 Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 33 PART II 34 Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6. Reserved 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 67 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 68 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 69 Item 9A.

Controls and Procedures

Controls and Procedures 69 Item 9B. Other Information 69 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 69 PART III 70 Item 10. Directors, Executive Officers and Corporate Governance 70 Item 11.

Executive Compensation

Executive Compensation 70 Item 12.

Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management, and Related Stockholder Matters 70 Item 13. Certain Relationships and Related Transactions, and Director Independence 70 Item 14. Principal Accountant Fees and Services 70 PART IV 71 Item 15. Exhibits and Financial Statement Schedules 71 Item 16. Form 10-K Summary 72 Index to Consolidated Financial Statements 73 Report of Independent Registered Public Accounting Firm-Crowe LLP F- 1

SIGNATURES

SIGNATURES F- 59 Some of the information contained in this report concerning the markets and industry in which we operate is derived from publicly available information and from industry sources. Although we believe that this publicly available information and information provided by these industry sources are reliable, we have not independently verified the accuracy of any of this information. To assist the reader, the Corporation has provided the following list of commonly used abbreviations and terms included in Parts I through IV. Abbreviations ACL Allowance for Credit Losses AFS Available for sale securities ALCO Asset-Liability Committee AOCI Accumulated Other Comprehensive Income ASC Accounting Standards Codification ASU Accounting Standards Update Bank Chemung Canal Trust Company Basel III The Third Basel Accord of the Basel Committee on Banking Supervision BHCA Bank Holding Company Act of 1956 Board of Directors Board of Directors of Chemung Financial Corporation BOLI Bank Owned Life Insurance CAM Common area maintenance charges CARES Act Coronavirus Aid, Relief, and Economic Security Act CAPM Capital Asset Pricing Model CBLR Community Bank Leverage Ratio CDARS Certificate of Deposit Account Registry Service CDO Collateralized Debt Obligation CECL Current Expected Credit Loss CFPB Consumer Financial Protection Bureau CFS CFS Group, Inc. Corporation Chemung Financial Corporation COVID-19 Coronavirus disease 2019 CRA Community Reinvestment Act CRM Chemung Risk Management, Inc. DIF Deposit Insurance Fund Dodd-Frank Act The Dodd-Frank Wall Street Reform and Consumer Protection Act ECOA Equal Credit Opportunity Act EPS Earnings per share Exchange Act Securities Exchange Act of 1934 FACT Act Fair and Accurate Credit Transactions Act of 2003 FASB Financial Accounting Standards Board FCRA Fair Credit Reporting Act FDIA Federal Deposit Insurance Act FDIC Federal Deposit Insurance Corporation FFIEC Federal Financial Institu

BUSINESS

ITEM 1. BUSINESS General The Corporation was incorporated on January 2, 1985 under the laws of the State of New York and is headquartered in Elmira, NY. The Corporation was organized for the purpose of acquiring the Bank. The Bank was established in 1833 under the name Chemung Canal Bank, and was subsequently granted a New York State bank charter in 1895. In 1902, the Bank was reorganized as a New York State trust company under the name Elmira Trust Company, and its name was changed to Chemung Canal Trust Company in 1903. The Corporation became a financial holding company in June 2000. Financial holding company status provided the Corporation with the flexibility to offer an array of financial services, such as insurance products, mutual funds, and brokerage services, which provide additional sources of fee-based income and allow the Corporation to better serve its customers. The Corporation established a financial services subsidiary, CFS, in September 2001 which offers non-banking financial services such as mutual funds, annuities, brokerage services, insurance and tax preparation services. CRM, a wholly-owned subsidiary of the Corporation, was formed and began operations on May 31, 2016 as a Nevada-based captive insurance company. During the fourth quarter of 2023, CRM was dissolved by the Corporation effective December 6, 2023. The dissolution of CRM did not have a significant impact to financial results for the year ended December 31, 2023. The Corporation's Board of Directors has concluded that the expansion of the franchise's geographic footprint, an increase in the Bank's interest earning assets, and the generation of new sources of non-interest income are important components of its strategic plan. Over the last 15 years, the Corporation and the Bank have completed the following transactions to grow the franchise: On March 14, 2008, the Bank acquired three branches from Manufacturers and Traders Trust Company in Broome and Tioga counties in New York.

View Full Filing

View this 10-K filing on SEC EDGAR