XML 29 R12.htm IDEA: XBRL DOCUMENT
v3.24.0.1

SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES Amortized cost and estimated fair value of securities available for sale at December 31, 2023 and 2022 are as follows (in thousands):
| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
U.S. treasury notes and bonds | $ | 59,812 |  |  | $ | — |  |  | $ | 4,480 |  |  | $ | — |  |  | $ | 55,332 |
Mortgage-backed securities, residential | 476,240 |  |  | 6 |  |  | 72,422 |  |  | — |  |  | 403,824 |
Collateralized mortgage obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |
Obligations of states and political subdivisions | 39,503 |  |  | — |  |  | 817 |  |  | — |  |  | 38,686 |
Corporate bonds and notes | 25,750 |  |  | — |  |  | 5,081 |  |  | — |  |  | 20,669 |
SBA loan pools | 67,787 |  |  | 75 |  |  | 2,380 |  |  | — |  |  | 65,482 |
Total | $ | 669,092 |  |  | $ | 81 |  |  | $ | 85,180 |  |  | $ | — |  |  | $ | 583,993 |
|  | December 31, 2022
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury notes and bonds |  | $ | 61,800 |  |  | $ | — |  |  | $ | 6,225 |  |  | $ | 55,574 |
Mortgage-backed securities, residential |  | 518,838 |  |  | — |  |  | 83,707 |  |  | 435,131 |
Collateralized mortgage obligations |  | — |  |  | — |  |  | — |  |  | — |
Obligations of states and political subdivisions |  | 39,828 |  |  | 2 |  |  | 938 |  |  | 38,892 |
Corporate bonds and notes |  | 25,750 |  |  | — |  |  | 3,780 |  |  | 21,970 |
SBA loan pools |  | 82,982 |  |  | 155 |  |  | 2,116 |  |  | 81,022 |
Total |  | $ | 729,198 |  |  | $ | 157 |  |  | $ | 96,766 |  |  | $ | 632,589 |
Proceeds from the sale of available for sale securities for the year ended December 31, 2023 were $1.2 million, and a gross loss of $14 thousand was realized on these sales. The sales were executed by Chemung Risk Management, Inc., which served as a wholly owned captive insurance company based in the State of Nevada, until dissolution by the Corporation effective December 6, 2023. There were no proceeds from sales and calls of securities resulting in gains or losses during the year ended December 31, 2022. The tax benefit related to these net realized losses was $4 thousand for the year ended December 31, 2023. The amortized cost and estimated fair value of debt securities available for sale are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands):
|  | December 31, 2023
|  | Amortized Cost |  | Estimated Fair Value
Within one year |  | $ | 5,678 |  |  | $ | 5,594 |
After one, but within five years |  | 101,391 |  |  | 94,363 |
After five, but within ten years |  | 17,526 |  |  | 14,302 |
After ten years |  | 470 |  |  | 428 |
Mortgage-backed securities: residential |  | 476,240 |  |  | 403,824 |
SBA loan pools |  | 67,787 |  |  | 65,482 |
Total |  | $ | 669,092 |  |  | $ | 583,993 |
Amortized cost and estimated fair value of securities held to maturity at December 31, 2023 and 2022 are as follows (in thousands):
|  | December 31, 2023
|  | Amortized Cost |  | Unrecognized Gains |  | Unrecognized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Obligations of states and political subdivisions |  | $ | 785 |  |  | $ | — |  |  | $ | — |  |  | $ | 785 |  |  | $ | — |
Time deposits with other financial institutions |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 785 |  |  | $ | — |  |  | $ | — |  |  | $ | 785 |  |  | $ | — |
|  | December 31, 2022
|  | Amortized Cost |  | Unrecognized Gains |  | Unrecognized Losses |  | Estimated Fair Value
Obligations of states and political subdivisions |  | $ | 952 |  |  | $ | — |  |  | $ | — |  |  | $ | 952 |
Time deposits with other financial institutions |  | 1,472 |  |  | — |  |  | 22 |  |  | 1,450 |
|  | $ | 2,424 |  |  | $ | — |  |  | $ | 22 |  |  | $ | 2,402 |
Proceeds from the sale of held to maturity securities for the year ended December 31, 2023 were $1.0 million, and a gross loss of $25 thousand was realized on these sales. The sales were executed by Chemung Risk Management, Inc., which served as a wholly owned captive insurance company based in the State of Nevada, until dissolution by the Corporation effective December 6, 2023. There were no proceeds from sales of securities held to maturity during the year ended December 31, 2022. The contractual maturity of securities held to maturity was as follows at December 31, 2023 (in thousands):
|  | December 31, 2023
|  | Amortized Cost |  | Fair Value
Within one year |  | $ | — |  |  | $ | — |
After one, but within five years |  | 145 |  |  | 145 |
After five, but within ten years |  | 640 |  |  | 640 |
After ten years |  | — |  |  | — |
Total |  | $ | 785 |  |  | $ | 785 |
The following tables summarize the investment securities available for sale with unrealized losses, for which an allowance for credit losses has not been recorded as of December 31, 2023, and an other than temporary impairment (OTTI) has not been recorded as of December 31, 2022 aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
2023 |
U.S. treasury notes and bonds |  | $ | — |  |  | $ | — |  |  | $ | 55,332 |  |  | $ | 4,480 |  |  | $ | 55,332 |  |  | $ | 4,480 |
Mortgage-backed securities: residential |  | — |  |  | — |  |  | 402,986 |  |  | 72,422 |  |  | 402,986 |  |  | 72,422 |
Obligations of states and political subdivisions |  | 17,891 |  |  | 241 |  |  | 20,686 |  |  | 576 |  |  | 38,577 |  |  | 817 |
Corporate bonds and notes |  | 7,492 |  |  | 2,508 |  |  | 13,177 |  |  | 2,573 |  |  | 20,669 |  |  | 5,081 |
SBA loan pools |  | 3,914 |  |  | 13 |  |  | 54,468 |  |  | 2,367 |  |  | 58,382 |  |  | 2,380 |
Total temporarily impaired securities |  | $ | 29,297 |  |  | $ | 2,762 |  |  | $ | 546,649 |  |  | $ | 82,418 |  |  | $ | 575,946 |  |  | $ | 85,180 |
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
2022 |
U.S. treasury notes and bonds |  | $ | 1,011 |  |  | $ | 30 |  |  | $ | 54,563 |  |  | $ | 6,195 |  |  | $ | 55,574 |  |  | $ | 6,225 |
Mortgage-backed securities, residential |  | 79,891 |  |  | 7,621 |  |  | 355,240 |  |  | 76,086 |  |  | 435,131 |  |  | 83,707 |
Obligations of states and political subdivisions |  | 37,847 |  |  | 938 |  |  | — |  |  | — |  |  | 37,847 |  |  | 938 |
Corporate bonds and notes |  | 4,515 |  |  | 485 |  |  | 7,455 |  |  | 3,295 |  |  | 11,970 |  |  | 3,780 |
SBA loan pools |  | 14,333 |  |  | 925 |  |  | 51,123 |  |  | 1,191 |  |  | 65,456 |  |  | 2,116 |
Total temporarily impaired securities |  | $ | 137,597 |  |  | $ | 9,999 |  |  | $ | 468,381 |  |  | $ | 86,767 |  |  | $ | 605,978 |  |  | $ | 96,766 |
Pledged Securities The fair value of securities pledged to secure public funds on deposit or for other purposes as required by law was $255.0 million at December 31, 2023 and $213.8 million at December 31, 2022. Concentrations There are no securities of a single issuer (other than securities of U.S. Government sponsored enterprises) that exceeded 10% of shareholders' equity at December 31, 2023 or 2022. Assessment of Available for Sale Debt Securities for Credit Risk Management assesses the change in fair value of investment securities on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, structural changes in an investment, volatility in financial results of specific issuers, or deterioration in credit quality of issuers. Management assesses both qualitative and quantitative factors to determine whether any credit-related allowance is required. The following is a discussion of the credit quality characteristics of major portfolio segments carrying material unrealized losses as of December 31, 2023. Obligations of U.S. Governmental agencies and sponsored enterprises: As of December 31, 2023, a significant portion of the Corporation’s unrealized losses in available for sale investment securities related to mortgage-backed securities, issued by government-sponsored entities and agencies. Declines in fair value are attributable to changes in interest rates and market liquidity, not credit quality. The Corporation does not have the intent, and it is not likely to be required, to sell these securities prior to their anticipated recovery. All mortgage-backed securities in the available for sale securities portfolio as of December 31, 2023 were issued by FHLMC, FNMA, or GNMA. Because the Corporation considers these obligations to carry zero credit loss estimates, no allowance for credit losses was recorded as of December 31, 2023. Corporate bonds and notes: The Corporation's corporate bonds and notes portfolio is comprised of subordinated debt issues of community and regional banks. Management considers the credit quality of these investments on an individual basis. Management reviews the collectability of these securities, taking into consideration such factors as the financial condition of issuers, reported regulatory capital ratios of the issuers, and credit ratings when available, among other pertinent factors. All corporate bond debt securities continue to accrue interest and make payments as expected with no defaults or deferrals on the part of the issuers. Therefore, the Corporation considers the potential credit risk of the issuers to be immaterial, and no allowance for credit losses was recorded as of December 31, 2023. Other-Than-Temporary-Impairment Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), the Corporation evaluated its portfolio of available for sale securities for Other than Temporary Impairment (OTTI). As of December 31, 2022, the majority of the Corporation’s unrealized losses in the investment securities portfolio related to mortgage-backed securities. At December 31, 2022, the unrealized losses related to mortgage-backed were securities issued by U.S. government sponsored entities, Fannie Mae and Freddie Mac. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at December 31, 2022. Equity Method Investments The Corporation holds a non-qualified deferred compensation plan to allow a select group of management and employees the opportunity to defer all or a portion of their annual compensation, and treats assets held under this plan as equity method investments. As of December 31, 2023 and December 31, 2022, the fair value of investments held in relation to the deferred compensation plan was $2.4 million and $2.1 million, respectively. The Corporation also held $0.6 million of marketable securities as equity method investments for each of the years ended December 31, 2023 and 2022.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration