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EXHIBIT 99.1 Chemung Financial Corporation Reports Third Quarter 2021 Net Income of $ 6.6 million , or $ 1.42 per Share ELMIRA , N.Y , Oct. 21 , 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 $ 6.6 million , or $ 1.42 per share , for the third quarter of 2021 , compared to $ 5.7 million , or $ 1.19 per share , for the third quarter of 2020 . " I am pleased to report another strong quarter of financial results for Chemung Financial Corporation , with earnings per share of $ 1.42 , " said Anders M. Tomson , President and CEO . “ Our company's continued organic growth in core deposits , loans , and interest - earning assets contributed to these positive third quarter results , along with significant contributions from our Wealth Management Group and CFS Group , Inc. Additionally , the strength of our balance sheet continues to position us well for the future , and we are encouraged by the recent trend of decreasing non - performing loan balances , " Tomson added . Third Quarter Highlights¹ : • Deposits¹ increased $ 136.0 million , or 6.7 % . • ⚫ Non - performing loans decreased from $ 8.6 million as of June 30 , 2021 to $ 8.4 million as of September 30 , 2021 , representing 0.56 % of total loans . • Book Value per share increased 1.0 % from $ 43.57 per share as of June 30 , 2021 , to $ 44.00 per share as of September 30 , 2021 . • Tangible Book Value2 • Dividends declared during the quarter were $ 0.31 per share . per share increased 1.1 % from $ 38.90 per share as of June 30 , 2021 , to $ 39.34 per share as of September 30 , 2021 . 1 Balance sheet comparisons are calculated as of September 30 , 2021 versus December 31 , 2020 . 2 See GAAP to Non - GAAP Reconciliations , included within . 3rd Quarter 2021 vs 3rd Quarter 2020 Net Interest Income : Net interest income for the third quarter of 2021 totaled $ 16.8 million compared to $ 15.9 million for the same period in the prior year , an increase of $ 0.9 million , or 6.1 % , due primarily to an increase of $ 1.2 million in interest and dividend income on taxable securities , offset by decreases of $ 0.2 million in interest income on loans , including fees , and $ 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 $ 379.8 million and the one - time recognition of $ 0.5 million related to a prepayment penalty on a mortgage - backed security investment . The decrease in interest income on loans , including fees was due primarily to a decrease in average balances on consumer and commercial loans and decreases in the consumer and mortgage loan portfolios average yield due to a decrease in interest rates . 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 0.31 % in the third quarter of 2020 to 0.17 % in the third quarter of 2021 , and a decrease of $ 41.9 million in the average balance of interest - earning deposits in the third quarter of 2021 when compared to the same period in the prior year . Fully taxable equivalent net interest margin was 2.88 % for the third quarter 2021 , compared to 3.20 % for the same period in the prior year . Average interest- earning assets increased $ 341.8 million for the three months ended September 30 , 2021 compared to the same period in the prior year . The average yield on interest - earning assets decreased 35 basis points to 3.02 % , while the average cost of interest - bearing liabilities decreased five basis points to 0.22 % , for the three months ended September 30 , 2021 compared to the same period in the prior year . Non - Interest Income : Non - interest income for the three months ended September 30 , 2021 was $ 6.0 million compared to $ 5.3 million for the same period in the prior year , an increase of $ 0.7 million , or 11.8 % . The increase in the current quarter was due primarily to increases of $ 0.3 million in wealth management group fee income , $ 0.2 million in interchange revenue from debit card transactions , $ 0.1 million in service charges on deposit accounts , $ 0.2 million in CFS Group revenue primarily due to increased business , and a $ 0.1 million gain on the sale of real estate property associated with a branch closure in 2019. These increases were offset by a decrease of $ 0.3 million in net gains on sales of residential mortgage loans sold into the secondary market , as compared to the same period in the prior year . The increase in wealth management group fee income was primarily attributed to new business relationships and 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 third quarter of 2021 was $ 14.1 million compared to $ 13.4 million for the same period in the prior year , an increase of $ 0.7 million , or 5.5 % . 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 . Data processing expenses increased $ 0.4 million primarily due to investment in new initiatives during the current quarter , and a $ 0.2 million credit received in the same quarter of the prior year . Pension and other employee benefits increased $ 0.3 million primarily due to an increase in healthcare costs when compared to the same quarter in the prior year . Income Tax Expense :