PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2012

PARENT COMPANY FINANCIAL INFORMATION [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

(15)           PARENT COMPANY FINANCIAL INFORMATION

Condensed parent company only financial statement information of Chemung Financial Corporation is as follows (investment in subsidiaries is recorded using the equity method of accounting):

BALANCE SHEETS - DECEMBER 31	2012		2011
Assets:
Cash on deposit with subsidiary bank	$	1,788,169	$	1,122,470
Investment in subsidiary-Chemung Canal Trust Company		126,597,837		121,462,184
Investment in subsidiary-CFS Group, Inc.		640,229		586,431
Dividends receivable from subsidiary bank		-		1,141,081
Securities available for sale, at estimated fair value		304,190		307,064
Other assets		1,813,162		2,578,312
Total assets	$	131,143,587	$	127,197,542
Liabilities and shareholders' equity:
Dividends payable		-		1,141,081
Other liabilities		28,650		127,021
Total liabilities		28,650		1,268,102
Shareholders' equity:
Total shareholders' equity		131,114,937		125,929,440
Total liabilities and shareholders' equity	$	131,143,587	$	127,197,542

STATEMENTS OF INCOME - YEARS ENDED DECEMBER 31	2012			2011			2010
Dividends from subsidiary bank	$	4,572,958		$	11,916,475		$	3,520,584
Interest and dividend income		7,372			8,127			3,451
Other income		150,136			776,672			388,190
Operating expenses		331,441			227,847			209,794
Income before impact of subsidiaries' undistributed earnings or distributions   in excess of earnings and income taxes		4,399,025			12,473,427			3,702,431
Equity in undistributed earnings (dividends in excess of earnings)   of Chemung Canal Trust Company		6,410,993			(1,837,241	)		6,391,013
Equity in undistributed earnings of CFS Group, Inc.		53,798			44,166			9,335
Income before income tax		10,863,816			10,680,352			10,102,779
Income tax (benefit) expense		(158,424	)		142,597			906
Net Income	$	11,022,240		$	10,537,755		$	10,101,873

STATEMENTS OF CASH FLOWS - YEARS ENDED DECEMBER 31	2012			2011			2010
Cash flows from operating activities:
Net Income	$	11,022,240		$	10,537,755		$	10,101,873
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (undistributed earnings) dividends in excess of earnings   of Chemung Canal Trust Company		(6,410,993	)		1,837,241			(6,391,013	)
Equity in undistributed earnings of CFS Group, Inc.		(53,798	)		(44,166	)		(9,335	)
Change in dividend receivable		1,141,081			(259,879	)		(1,115	)
Change in other assets		765,150			(60,510	)		(19,789	)
Change in other liabilities		48,182			136,602			678,237
Expense related to employee stock compensation		80,000			55,000			55,000
Expense related to restricted stock units for directors' deferred   Compensation plan		86,717			80,083			111,772
Expense to employee restricted stock awards		79,510			28,141			1,143
Net cash provided by operating activities		6,758,089			12,310,267			4,526,773
Cash flow from investing activities:
Cash paid Fort Orange Financial Corp. acquisition		-			(8,137,816	)		-
Net cash used by investing activities		-			(8,137,816	)		-
Cash flow from financing activities:
Cash dividends paid		(5,714,039	)		(4,056,597	)		(3,519,470	)
Purchase of treasury stock		(635,800	)		(501,299	)		(425,567	)
Sale of treasury stock		257,449			242,610			153,360
Net cash used in financing activities		(6,092,390	)		(4,315,286	)		(3,791,677	)
(Decrease) increase in cash and cash equivalents		665,699			(142,835	)		735,096
Cash and cash equivalents at beginning of year		1,122,470			1,265,305			530,209
Cash and cash equivalents at end of year	$	1,788,169		$	1,122,470		$	1,265,305