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EXHIBIT 99.1 Chemung Financial Corporation Reports Second Quarter 2021 Net Income of $ 6.8 million , or $ 1.45 per Share ELMIRA , N.Y. , July 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 $ 6.8 million , or $ 1.45 per share , for the second quarter of 2021 , compared to $ 5.8 million , or $ 1.20 per share , for the second quarter of 2020 . " Chemung Financial Corporation delivered strong financial results in the second quarter , with earnings per share increasing to $ 1.45 , the highest - recorded number in our nearly 188 - year - history , " said Anders M. Tomson , President & CEO . “ The continued strong performance of our Corporation allowed us to reward our shareholders in May with a quarterly dividend increase of $ 0.05 per share , or 19.2 percent , which represented the Corporation's first dividend increase since 2012 , " Tomson added . “ As we move into the second half of 2021 , I am excited about the significant growth opportunities that lie ahead of us as we continue to execute on our strategic plan . " Second Quarter Highlights¹ : 1 • Second quarter earnings per share grew to $ 1.45 per share from the prior quarter , ended March 31 , 2021 , of $ 1.39 per share , representing the highest earnings per share recorded in the Corporation's nearly 188 - year history . • Second quarter dividends per share increased 19.2 % to $ 0.31 per share , from $ 0.26 per share in the prior quarter . • The total provision for loan losses was a credit of $ 0.2 million primarily due to the $ 1.5 million release of pandemic related provision , offset by the impairment of a commercial real estate loan . • Non - performing loans decreased from $ 9.3 million as of March 31 , 2021 to $ 8.6 million as of June 30 , 2021 , representing 0.55 % of total loans . • Book Value¹ per share increased 4.7 % from $ 41.60 per share as of March 31 , 2021 , to $ 43.57 per share as of June 30 , 2021 . • Tangible Book Value² per share increased 5.4 % from $ 36.91 per share as of March 31 , 2021 , to $ 38.90 per share as of June 30 , 2021 . Balance sheet comparisons are calculated as of June 30 , 2021 versus December 31 , 2020 . 2 See GAAP to Non - GAAP Reconciliations , included within . 2nd Quarter 2021 vs 2nd Quarter 2020 Net Interest Income : Net interest income for the second quarter of 2021 totaled $ 16.1 million compared to $ 15.6 million for the same period in the prior year , an increase of $ 0.5 million , or 3.1 % , due primarily to an increase of $ 0.6 million in interest and dividend income on taxable securities , offset by a decrease of $ 0.1 million in interest income on interest - earning deposits . The increase in interest and dividend income on taxable securities was due primarily to an increase in average invested balances of $ 372.1 million . The decrease in interest income on interest - earning deposits was due primarily to the drop in interest rates on overnight deposits with the average yield on interest - earning deposits declining from 0.33 % in the second quarter of 2020 to 0.15 % in the second quarter of 2021 , and a decrease in the average balance of interest - earning deposits in the second quarter of 2021 when compared to the same period in the prior year . Fully taxable equivalent net interest margin was 2.76 % for the second quarter 2021 , compared to 3.26 % for the same period in the prior year . Average interest - earning assets increased $ 421.8 million for the three months ended June 30 , 2021 compared to the same period in the prior year . The average yield on interest - earning assets decreased 55 basis points for the three months ended June 30 , 2021 compared to the same period in the prior year , while the average cost of interest - bearing liabilities decreased six basis points , when compared to the same period in the prior year . Non - Interest Income : Non - interest income for the three months ended June 30 , 2021 was $ 6.5 million compared to $ 5.1 million for the same period in the prior year , an increase of $ 1.4 million , or 27.8 % . The increase in the current quarter was due primarily to increases of $ 0.5 million in wealth management group fee income , $ 0.3 million in interchange revenue from debit card transactions , $ 0.2 million in service charges on deposit accounts and a $ 0.7 million one - time refund of real estate , sales tax and Mastercard incentives as compared to the same period in the prior year . The increase in wealth management group fee income was primarily attributed to an increase in the market value of total assets under management or administration . The increase in interchange revenue from debit card transactions in the current quarter was primarily attributable to an increase in consumer spending when compared to the same period in the prior year . The increase in service charges on deposit accounts in the current quarter was primarily attributable to an increase in NSF and overdraft fees when compared to the same period in the prior year . Non - Interest Expense : Non - interest expense for the second quarter of 2021 was $ 13.9 million compared to $ 13.2 million for the same period in the prior year , an increase of $ 0.6 million , or 4.7 % . The increase can be mostly attributed to decreased spending in the prior year due to the worldwide pandemic , resulting in increases in most non - interest expense categories in the current quarter . Increases were offset by a decrease in other components of net periodic pension cost ( benefits ) and the $ 0.3 million release of a reserve established at December 31 , 2020 related to the settlement with NYS Department of Financial Services as described in the Corporation's Form 8 - K filed June 29 , 2021 . FDIC insurance increased $ 0.1 million primarily due to an increase in the assessment base due to increased average asset balances . Income Tax Expense : Income tax expense for the second quarter of 2021 was $ 2.1 million compared to $ 1.4 million for the same period in the prior year , an increase of $ 0.7 million . The effective tax rate for the current quarter increased to 23.4 % compared to 18.9 % for the same period in the prior year . The increase in income tax expense was primarily