EXHIBIT 99.1

Chemung Financial Corporation Reports 2017 Net Income of $10.4 million, or $2.16 per Share, and Fourth Quarter 2017 Net Income of $0.8 Million, or $0.16 per Share

ELMIRA, N.Y., Feb. 15, 2018 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (the “Corporation”) (Nasdaq:CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $10.4 million, or $2.16 per share, for the full year of 2017, compared to $10.0 million, or $2.11 per share, for the full year of 2016.  Net income for the fourth quarter of 2017 was $0.8 million, or $0.16 per share, compared to $3.0 million, or $0.62 per share, for the fourth quarter of 2016.

Earnings in the fourth quarter and full year 2017 included an estimated $2.6 million, or $0.54 per share, one-time net deferred tax revaluation to income tax expense, due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”).  The Tax Act was enacted on December 22, 2017, reducing the corporate Federal income tax rate from 35% to 21% and making other changes to the Federal corporate income tax laws.  The additional expense was attributable to the reduction in the carrying value of net deferred tax assets reflecting lower future tax benefits resulting from the lower enacted corporate tax rate.  Generally Accepted Accounting Principles (“GAAP”) require that the impact of the Tax Act must be accounted for in the period of enactment of the new law.  Non-GAAP net income for the full year of 2017 was $13.4 million, or $2.79 per share, compared to $10.2 million, or $2.13 per share, for the full year of 2016.  Non-GAAP net income for the fourth quarter of 2017 was $3.3 million, or $0.69 per share, compared to $3.0 million, or $0.62 per share, for the fourth quarter of 2016.

Anders M. Tomson, Chemung Financial Corporation CEO, stated:

“We are proud of the progress we made in 2017. We grew interest earning assets resulting in a substantial increase in revenue while maintaining our focus on operational efficiencies. We reinvested earnings in our digital delivery channels as part of our overall retail distribution transformation strategy. We remain focused on shareholder returns and believe that the recently passed tax reform bill will allow us to significantly reduce our income tax expense in the coming years and redeploy those earnings in initiatives and strategies that strengthen our capital, add value to shareholders, and position the Corporation for continued success.”

Fourth Quarter Highlights¹

• Loans, net of deferred fees, increased $111.5 million, or 9.3%
  
  
• Commercial loans increased $98.1 million, or 13.2%
  
  
• Deposits increased $11.1 million, or 0.8%
  
  
• Net interest income increased $1.5 million, or 11.2%
  
  
• Non-interest expense decreased $0.5 million, or 3.3%
  
  
• Dividends declared during the fourth quarter of 2017 were $0.26 per share

¹ Balance sheet comparisons are calculated for December 31, 2017 versus December 31, 2016.   Income statement comparisons are calculated for the fourth quarter of 2017 versus fourth quarter of 2016.

Karl F. Krebs, Chemung Financial Corporation CFO, stated:

“The Tax Act will provide the Corporation with welcomed tax relief. Our $2.6 million expense adjustment to revalue net deferred tax assets in the 4th quarter of 2017 will be recovered in less than two years as we realize the approximately 30% reduction in our combined effective tax rate beginning January 1, 2018.   The results for the 4th quarter, after adjusting for the effect of the $1.0 million specific reserve for one commercial credit, reflect the continued momentum that has been evident in our results this year, as we convert excess liquidity into interest earning assets. Loans grew $111.5 million this year driving an increase in interest income of $3.9 million, or 6.9%, as compared to last year.  Longer term, the additional net income translates to growth in equity which will support the Corporation’s ongoing mission of creating value for shareholders, customers, employees and the communities where the Bank does business.”

A more detailed summary of financial performance follows.

2017 vs 2016

Net Interest Income:

Net interest income for the year ended December 31, 2017 totaled $57.0 million compared with $52.3 million for the prior year, an increase of $4.7 million, or 8.9%.  The increase was due primarily to an increase in interest income from the loan portfolio, as the 2017 average loan balances increased $56.6 million when compared to the prior year.  Fully taxable equivalent net interest margin was 3.56% in 2017, compared with 3.37% for the prior year.  The increase in net interest margin was a result of the loan and securities portfolios repricing to current market rates.  Average interest-earning assets increased $52.4 million in 2017 compared to the prior year, primarily in commercial loans.  The average yield on interest-earning assets increased by 14 basis points, while the average cost of interest-bearing liabilities decreased by seven basis points.  The increase in the average yield of interest-earning assets can be mostly attributed to increases of six and 20 basis points in the yields of commercial loans and consumer loans, respectively, 13 and 18 basis points in yields of taxable and tax-exempt securities, respectively, and 59 basis points in the yield of interest-earning deposits, offset by an 11 basis points decrease in mortgage loans.  The decline in the average cost of interest-bearing liabilities can be attributed to a 23 basis points decline in the average cost of borrowings due to the maturity of one $10.0 million FHLB term advance (4.60% rate) in December 2016 and one $10.0 million repurchase agreement (4.54% rate) in March 2017.

Non-Interest Income:

Non-interest income for the year ended December 31, 2017 was $20.5 million compared with $21.1 million for the prior year, a decrease of $0.6 million, or 3.1%.  The decrease was primarily due to decreases of $0.1 million in service charges on deposit accounts, $0.3 million in interchange revenue from debit card transactions, and $0.9 million in net gains on securities transactions, offset by increases of $0.5 million in Wealth Management Group (“WMG”) fee income and $0.2 million in other non-interest income. The decrease in service charges on deposit accounts can be attributed to a decline in volume. The decrease in interchange revenue from debit card transactions can be mostly attributed to the recognition of an incremental volume bonus related to the rebranding of the Bank’s credit cards recognized in 2016. The decrease in net gains on securities transactions can be attributed to the sale of $14.5 million in U.S. Treasuries and $25.0 million in obligations of U.S. Government sponsored enterprises in 2016. The increase in WMG fee income can be attributed to an increase in assets under management or administration.  The increase in other non-interest income can be mostly attributed to an increase in CFS Group, Inc. financial services fee income.

Non-Interest Expense:

Non-interest expense for the year ended December 31, 2017 was $53.8 million compared with $56.6 million for the prior year, a decrease of $2.8 million, or 5.0%.  The decrease was due primarily to decreases of $1.9 million in pension and other employee benefits, $0.6 million in net occupancy, $0.1 million in furniture and equipment, $0.4 million in professional services, and $0.4 million in legal accruals and settlements, offset by increases of $0.5 million in salaries and wages and $0.2 million in other non-interest expenses.  The decrease in pension and other employee benefits can be mostly attributed to the freezing of accruals for the pension and post-retirement healthcare plans, offset by an increase in healthcare and employer 401(k) contributions.  The decrease in net occupancy and furniture and equipment expenses can be attributed to the branch closure at 202 East State Street in Ithaca, NY during the second quarter of 2016, offset by exit costs for the branch at 120 Genesee Street in Auburn, NY recognized during the second quarter of 2017.  The decrease in professional services can be attributed to professional fees incurred during the formation of Chemung Risk Management, Inc. (“CRM”) in 2016 and legal costs associated with the Fane v. Chemung Canal Trust Company case in 2016.  The decrease in legal accruals and settlements can be attributed to the creation of a $1.2 million legal accrual for the Fane v. Chemung Canal Trust Company case in 2016, compared to a $0.9 million legal accrual for the same case in 2017.  The increase in salaries and wages can be attributed to annual merit increases.

Income Tax Expense:

The effective tax rate increased to 44.4% for the year ended December 31, 2017 compared with 30.5% for the prior year.  The increase in the effective tax rate can be attributed to the estimated $2.6 million one-time net deferred tax revaluation due to the enactment of the Tax Act.  The effective tax rate for the year ended December 31, 2017, excluding the one-time net deferred tax revaluation, was 30.5%¹.

¹ ($8,267 income tax expense - $2,585 revaluation of net deferred tax expense) / $18,634 income before income tax expense.

4th Quarter 2017 vs 4th Quarter 2016

Net Interest Income:

Net interest income for the current quarter totaled $14.8 million compared with $13.3 million for the same period in the prior year, an increase of $1.5 million, or 11.2%.  Interest and fees from loans increased $1.2 million and interest from investments, including interest-earning deposits, increased $0.1 million while interest expense on borrowed funds and securities sold under agreements to repurchase decreased $0.2 million in the fourth quarter of 2017 when compared to the same period in the prior year.  Fully taxable equivalent net interest margin was 3.63% in the fourth quarter of 2017, compared with 3.33% for the same period in the prior year.  Average interest-earning assets increased $32.0 million in the fourth quarter of 2017, compared to the same period in the prior year.  The yield on average interest-earning assets increased 25 basis points, while the average cost of interest-bearing liabilities decreased seven basis points in the fourth quarter of 2017, compared to the same period in the prior year.  The increase in the average yield on interest-earning assets can be mostly attributed to a 40 basis point increase in the yield on investments due to the reinvestment of maturing securities into higher yielding mortgage-backed and municipal securities, along with a 10 basis points increase in the yield on loans due to an increase in PRIME and LIBOR.  The decline in the average cost of interest-bearing liabilities can be attributed to a 71 basis points decline in the cost of borrowings due to the maturity of one $10.0 million FHLB term advance (4.60% rate) in December 2016 and one $10.0 million repurchase agreement (4.54% rate) in March 2017.

Non-Interest Income:

Non-interest income for the current quarter was $5.5 million compared with $4.9 million for the same period in the prior year, an increase of $0.6 million, or 11.4%.  The increase was due primarily to increases of $0.2 million in wealth management group fee income and $0.3 million in other non-interest income.  The increase in WMG fee income can be attributed to an increase in assets under management or administration.  The increase in other non-interest income can be mostly attributed to an increase in CFS Group, Inc. financial services fee income and interest rate swap and risk participation fees.

Non-Interest Expense:

Non-interest expense for the current quarter was $13.1 million compared with $13.6 million for the same period in the prior year, a decrease of $0.5 million, or 3.3%.  The decrease was due primarily to decreases of $0.4 million in pension and other employee benefits and $0.2 million in professional services.  The decrease in pension and other employee benefits can be mostly attributed to the freezing of accruals for the pension and post-retirement healthcare plans during the fourth quarter of 2016.  The decrease in professional services can be mostly attributed to legal costs associated with the appeal of the Fane v. Chemung Canal Trust Company case in the fourth quarter of 2016. 

4th Quarter 2017 vs 3rd Quarter 2017

Net Interest Income:

Net interest income for fourth quarter of 2017 totaled $14.8 million, consistent with the prior quarter.  Fully taxable equivalent net interest margin was 3.63% for the fourth quarter of 2017, compared with 3.68% for the prior quarter.  Average interest-earning assets increased $23.4 million in the fourth quarter of 2017, compared to the prior quarter.  The average yield on interest-earning assets decreased four basis points, while the average cost of interest-bearing liabilities increased one basis point for the current quarter, compared to the prior quarter.  The decrease in the average yield on interest-earning assets can be mostly attributed to an eight basis points decrease in the average yield on loans, due to payoffs of nonaccrual loans during the third quarter of 2017, offset by an increase in PRIME and LIBOR.

Non-Interest Income:

Non-interest income for the current quarter was $5.5 million compared with $5.2 million for the prior quarter, an increase of $0.3 million, or 5.6%.  The increase can be mostly attributed to increases of $0.1 million in wealth management group fee income and $0.1 million in net gains on securities transactions. 

Non-Interest Expense:

Non-interest expense for the current quarter was $13.1 million compared with $13.3 million for the prior quarter, a decrease of $0.2 million, or 1.2%.  The decrease was due primarily to decreases of $0.2 million in salaries and wages, $0.1 million in pension and other employee benefits, and $0.2 million in other non-interest expense, offset by an increase of $0.2 million in professional services.  The decrease in salaries and wages can be mostly attributed to a true-up of annual awards during the fourth quarter.  The decrease in pension and other employee benefits can be mostly attributed to lower healthcare costs during the fourth quarter.  The decrease in other non-interest expense can be attributed to decreases in non-loan charge-offs and check card rewards.  The increase in professional services was due to the timing of services performed.

Asset Quality

Non-performing loans totaled $13.6 million at December 31, 2017, or 1.04% of total loans, compared with $12.0 million at December 31, 2016, or 1.00% of total loans.  The increase in non-performing loans at December 31, 2017 was primarily in the commercial and industrial and commercial mortgage segments, offset by decreases in the residential mortgage and consumer segments.  Non-performing assets, which are comprised of non-performing loans and other real estate owned, were $15.6 million, or 0.91% of total assets, at December 31, 2017, compared with $12.4 million, or 0.75% of total assets, at December 31, 2016.  As noted above, the increase in non-performing assets was primarily due to the commercial and industrial and commercial mortgage segments of the loan portfolio.

Management performs an ongoing assessment of the adequacy of the allowance for loan losses based upon a number of factors including an analysis of historical loss factors, collateral evaluations, recent charge-off experience, credit quality of the loan portfolio, current economic conditions and loan growth.  Based on this analysis, the provision for loan losses for the fourth quarter of 2017 was $2.3 million, an increase of $1.9 million compared with the same period in the prior year, due primarily to a $1.0 million specific reserve for one commercial credit.  Net charge-offs for the fourth quarter of 2017 were $0.8 million, compared with $1.5 million for the fourth quarter of 2016. 

The allowance for loan losses was $17.2 million as of December 31, 2017 and $14.3 million as of December 31, 2016.  The allowance for loan losses was 126.18% of non-performing loans at December 31, 2017 compared with 118.35% at December 31, 2016.  The ratio of the allowance for loan losses to total loans was 1.31% at December 31, 2017 compared with 1.19% at December 31, 2016.  The increase in the allowance for loan losses can be mostly attributed to an increase in the commercial and consumer loans portfolios, an increase in impaired loans and an increase in loss factors relating to the indirect and consumer loan portfolios.

Balance Sheet Activity

Assets totaled $1.711 billion at December 31, 2017 compared with $1.657 billion at December 31, 2016, an increase of $53.4 million, or 3.2%.  The growth was due primarily to increases of $1.7 million in FHLB and FRB stocks and $111.5 million in the loan portfolio, offset by decreases of $43.4 million in cash and cash equivalents, $9.8 million in securities available for sale, $0.9 million in securities held to maturity, $2.3 million in premises and equipment, and $0.9 million in other intangible assets, along with a $3.0 million increase in the allowance for loan losses.  

The increase in FHLB and FRB stocks can be attributed to an increase in FHLB overnight advances in 2017 compared to the prior year.  The increase in total loans can be mostly attributed to increases of $98.1 million in commercial loans and $17.5 million in consumer loans, offset by a $4.1 million decrease in residential mortgages.  The decrease in cash and cash equivalents can be mostly attributed to an increase in total loans, offset by an increase in deposits and FHLBNY advances.  The decrease in securities available for sale and held to maturity can be mostly attributed to maturities and calls.  The decrease in premises and equipment can be attributed to the depreciation of assets, along with the closure of the branch at 120 Genesee Street in Auburn, NY.

Deposits totaled $1.467 billion at December 31, 2017 compared with $1.456 billion at December 31, 2016, an increase of $11.1 million, or 0.8%.  The growth was attributable to increases of $49.8 million in non-interest bearing demand deposits, $12.2 million in interest-bearing demand deposits, and $10.0 million in savings deposits.  Partially offsetting the increases noted above were decreases of $35.2 million in money market accounts and $25.7 million in time deposits.  FHLB advances and other debt totaled $64.2 million at December 31, 2017 compared with $13.8 million at December 31, 2016, an increase of $50.4 million, or 364.8%.  FHLBNY overnight advances increased due to loan growth increasing faster than deposit growth during the year.

Total shareholders’ equity was $152.7 million at December 31, 2017 compared with $143.7 million at December 31, 2016, an increase of $9.0 million, or 6.3%.  The increase in retained earnings of $7.3 million was due primarily to earnings of $10.4 million and a $1.8 million re-class of the stranded accumulated other comprehensive loss associated with the revaluation of the net deferred tax asset from accumulated other comprehensive loss to retained earnings, offset by $4.9 million in dividends declared during the year.  The decrease in accumulated other comprehensive loss of $0.4 million can be attributed to the increase in the fair market value of the securities portfolio, offset by the $1.8 million re-class of the stranded accumulated other comprehensive loss associated with the revaluation of the net deferred tax asset to retained earnings.   Also, additional-paid-in capital increased $0.4 million and treasury stock decreased $0.9 million, due to the issuance of shares to the Corporation’s employee benefit stock plans.

The total equity to total assets ratio was 8.93% at December 31, 2017 compared with 8.67% at December 31, 2016.  The tangible equity to tangible assets ratio was 7.64% at December 31, 2017 compared with 7.29% at December 31, 2016.  Book value per share increased to $31.71 at December 31, 2017 from $30.07 at December 31, 2016.  As of December 31, 2017, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under regulatory capital guidelines and the Corporation was also well-capitalized under regulatory guidelines.

Other Items

The market value of total assets under management or administration in our Wealth Management Group was $1.952 billion at December 31, 2017, including $346.8 million of assets under management or administration for the Corporation, compared to $1.721 billion at December 31, 2016, including $294.9 million of assets under management or administration for the Corporation, an increase of $230.4 million, or 13.4%.

The Corporation elected to adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income as of December 31, 2017.  The objective of the ASU is to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act passed in December 2017.  Adoption of the ASU eliminates the stranded tax effects within accumulated other comprehensive income resulting from the revaluation of the net deferred tax asset.  As of December 31, 2017, the Corporation reclassified $1.8 million from accumulated other comprehensive income to retained earnings relating to the adoption of ASU 2018-02.

About Chemung Financial Corporation

Chemung Financial Corporation is a $1.7 billion financial services holding company headquartered in Elmira, New York and operates 34 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers.  Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State.  Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services and insurance, and Chemung Risk Management, Inc., a captive insurance company based in the State of Nevada.

This press release may be found at: www.chemungcanal.com under Investor Relations.

Chemung Financial Corporation
Consolidated Balance Sheets (Unaudited)
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
(in thousands)		2017			2017			2017			2017			2016
ASSETS
Cash and due from financial institutions	$	27,966		$	34,572		$	26,684		$	26,275		$	28,205
Interest-earning deposits in other financial institutions		2,763			21,806			37,862			99,410			45,957
Total cash and cash equivalents		30,729			56,378			64,546			125,685			74,162
Trading assets, at fair value		988			909			877			826			774
Securities available for sale		293,627			312,226			324,293			302,581			303,402
Securities held to maturity		3,781			3,865			4,928			3,721			4,705
FHLB and FRB stocks, at cost		5,784			3,497			3,764			3,597			4,041
Total investment securities		303,192			319,588			332,985			309,899			312,148
Commercial		843,337			826,554			794,175			780,687			745,217
Mortgage		194,440			197,210			200,629			198,020			198,493
Consumer		274,047			265,049			257,843			255,544			256,580
Loans, net of deferred loan fees		1,311,824			1,288,813			1,252,647			1,234,251			1,200,290
Allowance for loan losses		(17,219	)		(15,694	)		(15,104	)		(14,960	)		(14,253	)
Loans, net		1,294,605			1,273,119			1,237,543			1,219,291			1,186,037
Loans held for sale		542			1,246			386			20			412
Premises and equipment, net		26,657			27,366			27,836			28,206			28,923
Goodwill		21,824			21,824			21,824			21,824			21,824
Other intangible assets, net		2,085			2,292			2,506			2,719			2,945
Accrued interest receivable and other assets		29,934			28,960			30,069			27,630			29,954
Total assets	$	1,710,556		$	1,731,682		$	1,718,572		$	1,736,100		$	1,657,179
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing demand deposits	$	467,610		$	449,841		$	436,017		$	432,062		$	417,812
Interest-bearing demand deposits		149,026			156,094			144,239			154,848			136,826
Money market accounts		513,782			586,795			591,751			597,547			548,963
Savings deposits		218,666			218,106			220,227			219,180			208,636
Time deposits		118,362			126,182			132,803			140,614			144,106
Total deposits		1,467,446			1,537,018			1,525,037			1,544,251			1,456,343
Securities sold under agreements to repurchase		10,000			10,000			11,937			15,215			27,606
FHLB advances and other debt		64,217			13,577			13,658			13,736			13,815
Accrued interest payable and other liabilities		16,144			16,810			15,978			14,641			15,667
Total liabilities		1,557,807			1,577,405			1,566,610			1,587,843			1,513,431
Shareholders' equity
Common stock		53			53			53			53			53
Additional-paid-in capital		45,967			46,089			45,966			45,901			45,603
Retained earnings		131,389			130,006			127,585			125,860			124,111
Treasury stock, at cost		(14,320	)		(14,596	)		(14,670	)		(14,801	)		(15,265	)
Accumulated other comprehensive (loss)		(10,340	)		(7,275	)		(6,972	)		(8,756	)		(10,754	)
Total shareholders' equity		152,749			154,277			151,962			148,257			143,748
Total liabilities and shareholders' equity	$	1,710,556		$	1,731,682		$	1,718,572		$	1,736,100		$	1,657,179
Period-end shares outstanding		4,817			4,804			4,799			4,794			4,781

Chemung Financial Corporation
Consolidated Statements of Income (Unaudited)
	Three Months Ended						Twelve Months Ended
	December 31,				Percent		December 31,				Percent
(in thousands, except per share data)		2017		2016	Change			2017		2016	Change
Interest and dividend income:
Loans, including fees	$	13,815	$	12,623	9.4		$	52,840	$	49,677	6.4
Taxable securities		1,314		1,296	1.4			5,503		5,239	5.0
Tax exempt securities		313		223	40.4			1,149		945	21.6
Interest-earning deposits		118		127	(7.1	)		563		307	83.4
Total interest and dividend income		15,560		14,269	9.0			60,055		56,168	6.9
Interest expense:
Deposits		536		563	(4.8	)		2,168		2,170	(0.1	)
Securities sold under agreements to repurchase		95		213	(55.4	)		478		849	(43.7	)
Borrowed funds		149		197	(24.4	)		422		820	(48.5	)
Total interest expense		780		973	(19.8	)		3,068		3,839	(20.1	)
Net interest income		14,780		13,296	11.2			56,987		52,329	8.9
Provision for loan losses		2,330		404	476.7			5,080		2,437	108.5
Net interest income after provision for loan losses		12,450		12,892	(3.4	)		51,907		49,892	4.0
Non-interest income:
Wealth management group fee income		2,279		2,076	9.8			8,804		8,316	5.9
Service charges on deposit accounts		1,283		1,308	(1.9	)		4,961		5,089	(2.5	)
Interchange revenue from debit card transactions		952		992	(4.0	)		3,761		4,027	(6.6	)
Net gains on securities transactions		97		4	2325.0			109		987	(89.0	)
Net gains on sales of loans held for sale		67		53	26.4			260		326	(20.2	)
Net gains (losses) on sales of other real estate owned		-		27	(100.0	)		38		21	81.0
Income from bank owned life insurance		18		18	0.0			70		73	(4.1	)
Other		760		419	81.4			2,488		2,310	7.7
Total non-interest income		5,456		4,897	11.4			20,491		21,149	(3.1	)
Non-interest expense:
Salaries and wages		5,299		5,234	1.2			21,476		20,954	2.5
Pension and other employee benefits		859		1,238	(30.6	)		4,276		6,132	(30.3	)
Net occupancy		1,479		1,550	(4.6	)		6,263		6,837	(8.4	)
Furniture and equipment		709		681	4.1			2,828		2,967	(4.7	)
Data processing		1,681		1,535	9.5			6,539		6,593	(0.8	)
Professional services		605		757	(20.1	)		1,774		2,175	(18.4	)
Legal accruals and settlements		-		-	N/M			850		1,200	(29.2	)
Amortization of intangible assets		207		238	(13.0	)		860		986	(12.8	)
Marketing and advertising		214		229	(6.6	)		794		877	(9.5	)
Other real estate owned expense		75		30	150.0			110		180	(38.9	)
FDIC insurance		290		298	(2.7	)		1,236		1,193	3.6
Loan expense		247		207	19.3			694		669	3.7
Other		1,446		1,564	(7.5	)		6,064		5,847	3.7
Total non-interest expense		13,111		13,561	(3.3	)		53,764		56,610	(5.0	)
Income before income tax expense		4,795		4,228	13.4			18,634		14,431	29.1
Income tax expense		4,017		1,274	215.3			8,267		4,404	87.7
Net income	$	778	$	2,954	(73.7	)	$	10,367	$	10,027	3.4
Basic and diluted earnings per share	$	0.16	$	0.62			$	2.16	$	2.11
Cash dividends declared per share		0.26		0.26				1.04		1.04
Average basic and diluted shares outstanding		4,809		4,773				4,800		4,762
N/M - Not meaningful

Chemung Financial Corporation
Consolidated Financial Highlights (Unaudited)
																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, per share data)		2017			2017			2017			2017			2016			2017			2016
RESULTS OF OPERATIONS
Interest income	$	15,560		$	15,497		$	14,684		$	14,314		$	14,269		$	60,055		$	56,168
Interest expense		780			734			734			820			973			3,068			3,839
Net interest income		14,780			14,763			13,950			13,494			13,296			56,987			52,329
Provision for loan losses		2,330			1,289			421			1,040			404			5,080			2,437
Net interest income after provision for loan losses		12,450			13,474			13,529			12,454			12,892			51,907			49,892
Non-interest income		5,456			5,166			5,022			4,847			4,897			20,491			21,149
Non-interest expense		13,111			13,276			14,332			13,045			13,561			53,764			56,610
Income before income tax expense		4,795			5,364			4,219			4,256			4,228			18,634			14,431
Income tax expense		4,017			1,710			1,263			1,277			1,274			8,267			4,404
Net income	$	778		$	3,654		$	2,956		$	2,979		$	2,954		$	10,367		$	10,027
Basic and diluted earnings per share	$	0.16		$	0.76		$	0.62		$	0.62		$	0.62		$	2.16		$	2.11
Average basic and diluted shares outstanding		4,809			4,802			4,797			4,790			4,773			4,800			4,762
PERFORMANCE RATIOS
Return on average assets		0.18	%		0.85	%		0.69	%		0.71	%		0.69	%		0.61	%		0.60	%
Return on average equity		1.99	%		9.46	%		7.90	%		8.24	%		8.20	%		6.86	%		7.02	%
Return on average tangible equity (a)		2.36	%		11.24	%		9.43	%		9.90	%		9.92	%		8.17	%		8.52	%
Efficiency ratio (a) (b)		63.43	%		64.83	%		69.28	%		69.25	%		72.63	%		66.60	%		74.43	%
Non-interest expense to average assets		3.01	%		3.09	%		3.34	%		3.12	%		3.18	%		3.14	%		3.32	%
Loans to deposits		89.40	%		83.85	%		82.14	%		79.93	%		82.42	%		89.40	%		82.42	%
YIELDS / RATES - Fully Taxable Equivalent
Yield on loans		4.26	%		4.34	%		4.18	%		4.19	%		4.16	%		4.24	%		4.18	%
Yield on investments		2.15	%		2.16	%		2.01	%		2.00	%		1.75	%		2.08	%		1.83	%
Yield on interest-earning assets		3.82	%		3.86	%		3.65	%		3.66	%		3.57	%		3.75	%		3.61	%
Cost of interest-bearing deposits		0.20	%		0.20	%		0.20	%		0.20	%		0.21	%		0.20	%		0.21	%
Cost of borrowings		2.42	%		2.95	%		2.82	%		3.04	%		3.13	%		2.78	%		3.01	%
Cost of interest-bearing liabilities		0.28	%		0.27	%		0.26	%		0.30	%		0.35	%		0.28	%		0.35	%
Interest rate spread		3.54	%		3.59	%		3.39	%		3.36	%		3.22	%		3.47	%		3.26	%
Net interest margin, fully taxable equivalent		3.63	%		3.68	%		3.47	%		3.45	%		3.33	%		3.56	%		3.37	%
CAPITAL
Total equity to total assets at end of period		8.93	%		8.91	%		8.84	%		8.54	%		8.67	%		8.93	%		8.67	%
Tangible equity to tangible assets at end of period (a)		7.64	%		7.62	%		7.53	%		7.23	%		7.29	%		7.64	%		7.29	%
Book value per share	$	31.71		$	32.11		$	31.67		$	30.93		$	30.07		$	31.71		$	30.07
Tangible book value per share (a)		26.75			27.09			26.60			25.81			24.89			26.75			24.89
Period-end market value per share		48.10			47.10			40.88			39.50			36.35			48.10			36.35
Dividends declared per share		0.26			0.26			0.26			0.26			0.26			1.04			1.04
AVERAGE BALANCES
Loans and loans held for sale (c)	$	1,291,414		$	1,259,919		$	1,237,189		$	1,215,445		$	1,210,922		$	1,251,225		$	1,194,589
Interest earning assets		1,639,257			1,615,833			1,634,955			1,605,460			1,607,287			1,623,948			1,571,513
Total assets		1,727,616			1,707,111			1,723,664			1,694,199			1,699,059			1,713,233			1,667,184
Deposits		1,516,390			1,512,685			1,532,819			1,495,724			1,483,348			1,514,457			1,450,520
Total equity		154,767			153,244			150,155			146,642			143,388			151,229			142,906
Tangible equity (a)		130,759			129,024			125,720			121,988			118,502			126,902			117,656
ASSET QUALITY
Net charge-offs	$	805		$	699		$	277		$	333		$	1,476		$	2,114		$	2,444
Non-performing loans (d)		13,646			14,028			15,208			12,914			12,043			13,646			12,043
Non-performing assets (e)		15,586			14,216			15,545			13,251			12,431			15,586			12,431
Allowance for loan losses		17,219			15,694			15,104			14,960			14,253			17,219			14,253
Annualized net charge-offs to average loans		0.25	%		0.22	%		0.09	%		0.11	%		0.48	%		0.17	%		0.20	%
Non-performing loans to total loans		1.04	%		1.09	%		1.21	%		1.05	%		1.00	%		1.04	%		1.00	%
Non-performing assets to total assets		0.91	%		0.82	%		0.90	%		0.76	%		0.75	%		0.91	%		0.75	%
Allowance for loan losses to total loans		1.31	%		1.22	%		1.21	%		1.21	%		1.19	%		1.31	%		1.19	%
Allowance for loan losses to non-performing loans		126.18	%		111.88	%		99.32	%		115.84	%		118.35	%		126.18	%		118.35	%
(a)  See the GAAP to Non-GAAP reconciliations.
(b)  Efficiency ratio is non-interest expense less amortization of intangible assets less legal reserve divided by the total of fully taxable equivalent net interest
income plus non-interest income less net gains on securities transactions less gain from bargain purchase less gain on liquidation of trust preferred securities.
(c)  Loans and loans held for sale do not reflect the allowance for loan losses.
(d)  Non-performing loans include non-accrual loans only.
(e)  Non-performing assets include non-performing loans plus other real estate owned.

Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)
Twelve Months Ended December 31, 2017								Twelve Months Ended December 31, 2016								Twelve Months Ended December 31, 2017 vs. 2016
(in thousands)	Average Balance			Interest			Yield / Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate
Interest earning assets:
Commercial loans	$	791,627		$	34,596		4.37	%	$	734,628		$	31,682		4.31	%	$	2,914		$	2,471		$	443
Mortgage loans		198,783			7,541		3.79	%		197,132			7,689		3.90	%		(148	)		65			(213	)
Consumer loans		260,815			10,964		4.20	%		262,829			10,512		4.00	%		452			(80	)		532
Taxable securities		270,168			5,510		2.04	%		274,401			5,245		1.91	%		265			(83	)		348
Tax-exempt securities		52,227			1,669		3.20	%		45,127			1,364		3.02	%		305			221			84
Interest-earning deposits		50,328			563		1.12	%		57,396			307		0.53	%		256			(42	)		298
Total interest earning assets		1,623,948			60,843		3.75	%		1,571,513			56,799		3.61	%		4,044			2,552			1,492
Non-interest earnings assets:
Cash and due from banks		25,663								26,708
Premises and equipment, net		27,936								29,525
Other assets		53,883								51,590
Allowance for loan losses		(15,066	)							(14,771	)
AFS valuation allowance		(3,131	)							2,619
Total assets	$	1,713,233							$	1,667,184
Interest-bearing liabilities:
Interest-bearing checking	$	146,999		$	135		0.09	%	$	135,874		$	136		0.10	%	$	(1	)	$	12		$	(13	)
Savings and money market		800,070			1,566		0.20	%		752,489			1,457		0.19	%		109			59			50
Time deposits		132,607			467		0.35	%		156,737			577		0.37	%		(110	)		(82	)		(28	)
FHLB advances and repos		32,350			900		2.78	%		55,472			1,669		3.01	%		(769	)		(650	)		(119	)
Total int.-bearing liabilities		1,112,026			3,068		0.28	%		1,100,572			3,839		0.35	%		(771	)		(661	)		(110	)
Non-interest-bearing liabilities:
Demand deposits		434,781								405,420
Other liabilities		15,197								18,286
Total liabilities		1,562,004								1,524,278
Shareholders' equity		151,229								142,906
Total liabilities and shareholders' equity	$	1,713,233							$	1,667,184
Fully taxable equivalent net interest income					57,775								52,960				$	4,815		$	3,213		$	1,602
Net interest rate spread (1)							3.47	%							3.26	%
Net interest margin, fully taxable equivalent (2)							3.56	%							3.37	%
Taxable equivalent adjustment					(788	)							(631	)
Net interest income				$	56,987							$	52,329
(1)  Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2)  Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.
Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)
	Three Months Ended  December 31, 2017								Three Months Ended  December 31, 2016								Three Months Ended December 31, 2017 vs. 2016
(in thousands)	Average Balance			Interest			Yield / Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate
Interest earning assets:
Commercial loans	$	825,773		$	9,170		4.41	%	$	754,893		$	8,064		4.25	%	$	1,106		$	790		$	316
Mortgage loans		196,283			1,825		3.69	%		198,122			1,884		3.78	%		(59	)		(17	)		(42	)
Consumer loans		269,358			2,882		4.24	%		257,907			2,728		4.21	%		154			132			22
Taxable securities		261,395			1,316		2.00	%		265,626			1,298		1.94	%		18			(21	)		39
Tax-exempt securities		55,822			455		3.23	%		43,052			322		2.98	%		133			104			29
Interest-earning deposits		30,626			118		1.53	%		87,687			127		0.58	%		(9	)		(122	)		113
Total interest earning assets		1,639,257			15,766		3.82	%		1,607,287			14,423		3.57	%		1,343			866			477
Non- interest earnings assets:
Cash and due from banks		26,275								26,234
Premises and equipment, net		27,130								29,016
Other assets		53,568								51,162
Allowance for loan losses		(15,660	)							(15,302	)
AFS valuation allowance		(2,954	)							662
Total assets	$	1,727,616							$	1,699,059
Interest-bearing liabilities:
Interest-bearing checking	$	153,869		$	37		0.10	%	$	144,469		$	35		0.10	%		2			2			-
Savings and money market		792,266			398		0.20	%		778,343			392		0.20	%		6			6			-
Time deposits		121,472			101		0.33	%		145,971			136		0.37	%		(35	)		(21	)		(14	)
FHLB advances and repos		40,034			244		2.42	%		52,096			410		3.13	%		(166	)		(84	)		(82	)
Total int.-bearing liabilities		1,107,641			780		0.28	%		1,120,879			973		0.35	%		(193	)		(97	)		(96	)
Non-interest-bearing liabilities:
Demand deposits		448,783								414,565
Other liabilities		16,425								20,227
Total liabilities		1,572,849								1,555,671
Shareholders' equity		154,767								143,388
Total liabilities and shareholders' equity	$	1,727,616							$	1,699,059
Fully taxable equivalent net interest income					14,986								13,450				$	1,536		$	963		$	573
Net interest rate spread (1)							3.54	%							3.22	%
Net interest margin, fully taxable equivalent (2)							3.63	%							3.33	%
Taxable equivalent adjustment					(206	)							(154	)
Net interest income				$	14,780							$	13,296
(1)  Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2)  Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.

Chemung Financial Corporation

GAAP to Non-GAAP Reconciliations (Unaudited)

The Corporation prepares its Consolidated Financial Statements in accordance with GAAP.  See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.

In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of its competitors. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.”  Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures.  The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP.  When these exempted measures are included in public disclosures, supplemental information is not required.  The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute "non-GAAP financial measures" within the meaning of the SEC's rules, although we are unable to state with certainty that the SEC would so regard them.

Fully Taxable Equivalent Net Interest Income, Net Interest Margin, and Efficiency Ratio

Net interest income is commonly presented on a tax-equivalent basis.  That is, to the extent that some component of the institution's net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total.  This adjustment is considered helpful in comparing one financial institution's net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations.  Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets.  For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time.  The Corporation follows these practices.

The efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization.  This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share data)		2017			2017			2017			2017			2016			2017			2016
NET INTEREST MARGIN - FULLY TAXABLE EQUIVALENT
AND EFFICIENCY RATIO
Net interest income (GAAP)	$	14,780		$	14,763		$	13,950		$	13,494		$	13,296		$	56,987		$	52,329
Fully taxable equivalent adjustment		206			220			192			169			154			788			631
Fully taxable equivalent net interest income (non-GAAP)	$	14,986		$	14,983		$	14,142		$	13,663		$	13,450		$	57,775		$	52,960
Non-interest income (GAAP)	$	5,456		$	5,166		$	5,022		$	4,847		$	4,897		$	20,491		$	21,149
Less:  net (gains) losses on security transactions		(97	)		-			(12	)		-			(4	)		(109	)		(987	)
Adjusted non-interest income (non-GAAP)	$	5,359		$	5,166		$	5,010		$	4,847		$	4,893		$	20,382		$	20,162
Non-interest expense (GAAP)	$	13,111		$	13,276		$	14,332		$	13,045		$	13,561		$	53,764		$	56,610
Less:  amortization of intangible assets		(207	)		(214	)		(213	)		(226	)		(238	)		(860	)		(986	)
Less:  legal reserve		-			-			(850	)		-			-			(850	)		(1,200	)
Adjusted non-interest expense (non-GAAP)	$	12,904		$	13,062		$	13,269		$	12,819		$	13,323		$	52,054		$	54,424
Average interest-earning assets (GAAP)	$	1,639,257		$	1,615,833		$	1,634,955		$	1,605,460		$	1,607,287		$	1,623,948		$	1,571,513
Net interest margin - fully taxable equivalent (non-GAAP)		3.63	%		3.68	%		3.47	%		3.45	%		3.33	%		3.56	%		3.37	%
Efficiency ratio (non-GAAP)		63.43	%		64.83	%		69.28	%		69.25	%		72.63	%		66.60	%		74.43	%

Tangible Equity and Tangible Assets (Period-End)

Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets.  Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets.  Tangible book value per share represents the Corporation’s equity divided by common shares at period-end.  These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share and ratio data)		2017			2017			2017			2017			2016			2017			2016
TANGIBLE EQUITY AND TANGIBLE ASSETS
(PERIOD END)
Total shareholders' equity (GAAP)	$	152,749		$	154,277		$	151,962		$	148,257		$	143,748		$	152,749		$	143,748
Less:  intangible assets		(23,909	)		(24,116	)		(24,330	)		(24,543	)		(24,769	)		(23,909	)		(24,769	)
Tangible equity (non-GAAP)	$	128,840		$	130,161		$	127,632		$	123,714		$	118,979		$	128,840		$	118,979
Total assets (GAAP)	$	1,710,556		$	1,731,682		$	1,718,572		$	1,736,100		$	1,657,179		$	1,710,556		$	1,657,179
Less:  intangible assets		(23,909	)		(24,116	)		(24,330	)		(24,543	)		(24,769	)		(23,909	)		(24,769	)
Tangible assets (non-GAAP)	$	1,686,647		$	1,707,566		$	1,694,242		$	1,711,557		$	1,632,410		$	1,686,647		$	1,632,410
Total equity to total assets at end of period (GAAP)		8.93	%		8.91	%		8.84	%		8.54	%		8.67	%		8.93	%		8.67	%
Book value per share (GAAP)	$	31.71		$	32.11		$	31.67		$	30.93		$	30.07		$	31.71		$	30.07
Tangible equity to tangible assets at
end of period (non-GAAP)		7.64	%		7.62	%		7.53	%		7.23	%		7.29	%		7.64	%		7.29	%
Tangible book value per share (non-GAAP)	$	26.75		$	27.09		$	26.60		$	25.81		$	24.89		$	26.75		$	24.89

Tangible Equity (Average)

Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period.  Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity.  These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except ratio data)		2017			2017			2017			2017			2016			2017			2016
TANGIBLE EQUITY (AVERAGE)
Total average shareholders' equity (GAAP)	$	154,767		$	153,244		$	150,155		$	146,642		$	143,388		$	151,229		$	142,906
Less:  average intangible assets		(24,008	)		(24,220	)		(24,435	)		(24,654	)		(24,886	)		(24,327	)		(25,250	)
Average tangible equity (non-GAAP)	$	130,759		$	129,024		$	125,720		$	121,988		$	118,502		$	126,902		$	117,656
Return on average equity (GAAP)		1.99	%		9.46	%		7.90	%		8.24	%		8.20	%		6.86	%		7.02	%
Return on average tangible equity (non-GAAP)		2.36	%		11.24	%		9.43	%		9.90	%		9.92	%		8.17	%		8.52	%

Adjustments for Certain Items of Income or Expense

In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items.  The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share and ratio data)		2017			2017			2017			2017			2016			2017			2016
NON-GAAP NET INCOME
Reported net income (GAAP)	$	778		$	3,654		$	2,956		$	2,979		$	2,954		$	10,367		$	10,027
Net (gains) losses on security transactions (net of tax)		(60	)		-			(8	)		-			(2	)		(68	)		(614	)
Legal reserve (net of tax)		-			-			528			-			-			528			747
Revaluation of net deferred tax asset		2,585			-			-			-			-			2,585			-
Non-GAAP net income	$	3,303		$	3,654		$	3,476		$	2,979		$	2,952		$	13,412		$	10,160
Average basic and diluted shares outstanding		4,809			4,802			4,797			4,790			4,773			4,800			4,762
Reported basic and diluted earnings per share (GAAP)	$	0.16		$	0.76		$	0.62		$	0.62		$	0.62		$	2.16		$	2.11
Reported return on average assets (GAAP)		0.18	%		0.85	%		0.69	%		0.71	%		0.69	%		0.61	%		0.60	%
Reported return on average equity (GAAP)		1.99	%		9.46	%		7.90	%		8.24	%		8.20	%		6.86	%		7.02	%
Core basic and diluted earnings per share (non-GAAP)	$	0.69		$	0.76		$	0.72		$	0.62		$	0.62		$	2.79		$	2.13
Core return on average assets (non-GAAP)		0.76	%		0.85	%		0.81	%		0.71	%		0.69	%		0.78	%		0.61	%
Core return on average equity (non-GAAP)		8.47	%		9.46	%		9.29	%		8.24	%		8.19	%		8.87	%		7.11	%

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995.  The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release.  All statements regarding the Corporation's expected financial position and operating results, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements.  These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend."  The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct.  The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, including the Dodd-Frank Act, and changes in general business and economic trends.  Information concerning these and other factors can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2016 Annual Report on Form 10-K.  These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746.  Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

For further information contact:
Karl F. Krebs, EVP and CFO
kkrebs@chemungcanal.com
Phone:  607-737-3714