Chemung Canal Trust Company to Acquire 6 Branch Offices in Central NY

Chemung Canal Trust Company to Acquire 6 Branch Offices in Central NY

Chemung Canal to Enter Cayuga, Cortland & Seneca Counties and Significantly
Expand Presence in Tompkins County

ELMIRA, N.Y., July 11, 2013 (GLOBE NEWSWIRE) -- Chemung Financial Corporation
(Nasdaq:CHMG) today announced that its banking subsidiary, Chemung Canal Trust
Company (Chemung Canal), has entered into an agreement with Bank of America to
purchase six branch offices located in Auburn, Cortland, Ithaca and Seneca
Falls, New York. As part of the transaction, Chemung Canal will acquire nearly
$261 million in deposits and $1.8 million in loans. The transaction, which is
subject to regulatory approval, is expected to close in the fourth quarter of
2013. The acquisition is expected to be accretive to Chemung Financial
earnings in 2015.

"We are very excited to expand our market share in Tompkins County and to
bring our brand of community banking into Auburn, Cortland & Seneca Falls. We
believe many residents and businesses will value and appreciate the 'high
touch' approach to banking we will provide in these communities," said Ronald
M. Bentley, President and Chief Executive Officer of Chemung Canal Trust

The branch locations being purchased by Chemung Canal include:

  *120 Genesee Street, Auburn
  *185 Grant Street, Auburn
  *1094 Highway 222, Cortland
  *304 Elmira Road, Ithaca
  *202 The Commons, Ithaca
  *54 Falls Street, Seneca Falls

Chemung Canal expects to retain all of the employees currently working in
these branch offices.According to Bentley, "Customers will continue to do
business with the same friendly and knowledgeable staff of professional

"Growth in our balance sheet has been and will continue to be an important
focus of our Board and Management team.We have been very successful in
accomplishing this goal, during the past several years, through a combination
of organic growth and by expanding our footprint through acquisitions," said
Bentley. In 2011 Chemung Financial acquired Capital Bank & Trust, in Albany,
and in 2009 it acquired the Bank of Canton in Pennsylvania.The company also
acquired 3 branch offices from M&T Bank in 2008.

"As a full-service community bank, we can offer our newest customers a menu of
products and services necessary to help them achieve their financial goals.At
the same time, our commitment to providing the highest quality of customer
service – 'Canal Care' - is a hallmark of Chemung Canal and distinguishes us
from other banking competitors," Bentley said.In addition to retail and
commercial banking products, Chemung Canal provides a full menu of Wealth
Management products, providing trust, estate, retirement and investment

Chemung Canal Trust Company currently operates 23 full-service banking offices
in Broome, Chemung, Schuyler, Steuben, Tioga and Tompkins counties in New York
and Bradford County in Pennsylvania.CCTC also operates 5 full service banking
offices under the name Capital Bank, a division of Chemung Canal Trust
Company, in Albany & Saratoga counties. At March 31^st Chemung Financial
Corporation reported total assets of $1.28 billion and $1.83 billion of assets
under management or administration within the bank's Wealth Management

Chemung Canal Trust Company, headquartered in Elmira, NY, is a full-service
community bank with full 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. CFS Group, Inc. was founded in 2001.

This press release may be found at:

This press release may include forward-looking statements with respect to
revenue sources, growth, market risk, corporate objectives and possible losses
due to asset quality. These statements constitute "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934.Chemung Financial Corporation
assumes no duty, and specifically disclaims any obligation to update
forward-looking statements, whether as a result of new information, future
events or otherwise, and cautions that these statements are subject to risks
and uncertainties that could cause the Corporation's actual operating results
to differ materially.

CONTACT: Ronald M. Bentley
         President & CEO

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