CHMG Chemung Financial Corp.

Risks

• Economic conditions may adversely affect the Corporation’s financial performance.
• Our funding sources may prove insufficient to replace deposits at maturity and support our future growth.
• Commercial real estate and business loans increase the Corporation’s exposure to credit risks.
• Loan participations may have a higher risk of loss than loans the Bank originates because the Bank is not the lead lender and has limited control over credit monitoring.
• We are subject to environmental liability risk associated with lending activities.
• The Corporation's portfolio of indirect automobile lending exposes it to increased credit risks.
• The allowance for loan losses may prove to be insufficient to absorb losses in the loan portfolio.
• The Corporation is subject to risks and losses resulting from fraudulent activities that could adversely impact its financial performance and results of operations.
• Changes in interest rates could adversely affect the Corporation’s results of operations and financial condition.
• Strong competition within the Corporation's industry and market area could limit its growth and profitability.
• The Corporation operates in a highly regulated environment and may be adversely affected by changes in laws and regulations.
• Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition and results of operations.
• Uncertainty surrounding the future of LIBOR (London Interbank Offer Rate) may affect the fair value and return on the Corporation's financial instruments that use LIBOR as a reference rate.
• We are subject to the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to material penalties.
• Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
• The Bank may be subject to more stringent capital requirements, which may adversely impact the Corporation's return on equity, require it to raise additional capital, or constrain it from paying dividends or repurchasing shares.
• Changes in tax rates could adversely affect the Corporation's results of operations and financial condition.
• The Corporation holds certain intangible assets that could be classified as impaired in the future. If these assets are considered to be either partially or fully impaired in the future, its earnings and the book values of these assets would decrease.
• Financial counterparties expose the Corporation to risks.
• The Corporation may not be able to attract and retain skilled people.
• The Corporation's controls and procedures may fail or be circumvented, which may result in a material adverse effect on its business.
• Our risk management framework may not be effective in mitigating risk and reducing the potential for significant losses.
• We face significant operational risks because the financial services business involves a high volume of transactions.
• The Corporation continually encounters technological change and the failure to understand and adapt to these changes could adversely affect its business.
• Systems failures or breaches of our network security could subject us to increased operating costs as well as litigation and other liabilities.
• The risks presented by acquisitions could adversely affect the Corporation's financial condition and results of operations.
• Severe weather and other natural disasters can affect the Corporation’s business.
• The Corporation's accounting policies and estimates are critical to how the Corporation reports its financial condition and results of operations, and any changes to such accounting policies and estimates could materially affect how the Corporation reports its financial condition and results of operations.
• Involvement in wealth management creates risks associated with the industry.
• There may be claims and litigation pertaining to fiduciary responsibility.
• The Corporation’s common stock is not heavily traded, and the stock price may fluctuate significantly.
• The Corporation is a holding company and depends on its subsidiaries for dividends, distributions and other payments.
• Provisions of the Corporation's certificate of incorporation, bylaws, as well as New York law and certain banking laws, could delay or prevent a takeover of the Corporation by a third party.