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EXHIBIT 99.1 Chemung Financial Corporation Reports First Quarter 2021 Net Income of $ 6.5 million , or $ 1.39 per Share ELMIRA , N.Y. , April 22 , 2021 ( GLOBE NEWSWIRE ) -- Chemung Financial Corporation ( the " Corporation " ) ( Nasdaq : CHMG ) , the parent company of Chemung Canal Trust Company ( the " Bank " ) , today reported net income of $ 6.5 million , or $ 1.39 per share , for the first quarter of 2021 , compared to $ 2.5 million , or $ 0.51 per share , for the first quarter of 2020 . " I am pleased to report earnings of $ 6.5 million , or $ 1.39 per share , for the first quarter of 2021 , the second highest in the near 188 - year history of our Company , " according to Anders M. Tomson , President and CEO of Chemung Financial Corporation . " We began the year continuing to support our customers as the next phase of the Paycheck Protection Program launched early in the quarter , and , we assisted with the forgiveness process for others . Additionally we facilitated the dispersal of over 20,000 Economic Impact Payment checks , representing $ 46.2 million , across our footprint . Our continued focus on expense management improved our efficiency and non - interest expense to average - assets ratios , compared to last quarter . We are also excited for the opportunities that lie ahead in our move to Western New York , as we already have a strong pipeline of lending activity in the region . We look toward the remainder of 2021 with optimism , and we will remain a strong partner and resource for our customers and communities , " Tomson added . First Quarter Highlights¹ : • First quarter earnings per share grew to $ 1.39 per share versus the prior quarter , ending December 31 , 2020 , of $ 1.11 per share . The Corporation recorded the second highest earnings per share in its 188 year history . • Efficiency ratio ( unadjusted ) ² decreased from 69.72 % in the fourth quarter of 2020 , to 62.38 % in the first quarter of 2021. Non - interest expense to average assets decreased 46 basis points in the first quarter of 2021 . • The total provision for loan losses was a credit of $ 0.3 million primarily due to a settlement received related to a previously charged - off commercial credit . • Loans , net of deferred fees , increased $ 44.5 million , including $ 35.2 million due to Payroll Protection Program ( PPP ) loans , or 2.90 % from December 31 , 2020 . • Non - performing loans decreased from $ 10.0 million as of December 31 , 2020 to $ 9.3 million as of March 31 , 2021 , representing 0.59 % of total loans . • 799 applications have been processed for the second phase of PPP as of April 21 , 2021 , totaling $ 75.1 million in loans . • The Corporation has received approval from both the New York State Department of Financial Services and the Federal Reserve Bank of New York to open a full - service branch at its new location at 9159 Main Street , Clarence , New York , from which it is currently operating as a Loan Production Office . 1 Balance sheet comparisons are calculated as of March 31 , 2021 versus December 31 , 2020 . 2 See GAAP to Non - GAAP Reconciliations , included within . 1st Quarter 2021 vs 1st Quarter 2020 Net Interest Income : Net interest income for the current quarter totaled $ 15.8 million compared to $ 15.1 million for the same period in the prior year , an increase of $ 0.7 million , or 4.8 % , due primarily to increases of $ 0.4 million in interest income on loans , including fees , and $ 0.3 million in interest and dividend income on taxable securities , and a decrease of $ 0.4 million in total interest expense , offset by a decrease of $ 0.3 million in interest income on interest - earning deposits . The increase in interest income on loans was due primarily to an increase of $ 0.6 million in interest income on commercial loans primarily attributable to a $ 222.0 million increase in average balances on commercial loans and the recognition of $ 1.1 million of PPP loan fees , partially offset by a decrease in commercial portfolio average yield due to a decrease in interest rates . Interest income on mortgage loans increased $ 0.3 million primarily due to an increase of $ 50.5 million in average balances on mortgage loans , partially offset by a decrease in average portfolio yield due to a decrease in interest rates . These increases were offset by a decrease of $ 0.5 million in interest income on consumer loans which can be attributed to both decreases in average balances and average portfolio yield on consumer loans . The increase in interest and dividend income on taxable securities was due primarily to an increase in average invested balances of $ 286.4 million . The decrease in interest income on interest - earning deposits was due primarily to the sharp drop in interest rates on overnight deposits with the average yield on interest - earning deposits declining from 1.44 % in the first quarter of 2020 to 0.21 % in the first quarter of 2021. The decrease in interest expense on deposits was due primarily to decreases in interest rates paid on interest - bearing checking , savings and money market products . Fully taxable equivalent net interest margin was 2.86 % for the first quarter 2021 , compared to 3.55 % for the same period in the prior year . Average interest - earning assets increased $ 535.8 million as of March 31 , 2021 compared to the same period in the prior year . The average yield on interest - earning assets decreased 83 basis points in the first quarter of 2021 , while the average cost of interest - bearing liabilities decreased 21 basis points , as compared to the same period in the prior year . Non - Interest Income : Non - interest income for the three months ended March 31 , 2021 was $ 5.6 million compared to $ 4.7 million for the same period in the prior year , an increase of $ 0.9 million , or 18.8 % . The increase was due primarily to increases of $ 0.4 million in wealth management group fee income , $ 0.3 million in change in fair value of equity investments , $ 0.2 million in net gains on sales of residential mortgage loans sold into the secondary market , and $ 0.2 million in interchange revenue from debit card transactions , offset by a decrease of $ 0.3 million in service charges on deposit accounts primarily attributable to a decrease in NSF and overdraft fees as compared to the same period in the prior year .