EXHIBIT 99.1

Chemung Financial Reports First Quarter 2013 Earnings

ELMIRA, N.Y., April 25, 2013 (GLOBE NEWSWIRE) -- Chemung Financial Corporation (Nasdaq:CHMG), the parent company of Chemung Canal Trust Company, reported quarter ended March 31, 2013, net income and earnings per share. Highlights for the current quarter include:

• Net income for the three months ended March 31, 2013 was $2.4 million, or $0.52 per share, compared with $3.6 million, or $0.78 per share, for the same period in the prior year, a decrease of $1.2 million, or 33.3%.
• Net interest margin for the three months ended March 31, 2013 was 4.07%, down from 4.29% for the same period in the prior year.
• Non-performing assets to total assets ratio was 1.36% at March 31, 2013 compared with 1.32% at December 31, 2012. Excluding $6.3 million in accruing troubled debt restructurings and $3.2 million in accruing loans past due 90 days or more, the adjusted non-performing assets to total assets ratio was 0.61%.
• Capital remains strong as the tangible equity to tangible assets ratio was 8.47% at March 31, 2013, compared with 8.53% at December 31, 2012 and 8.24% at March 31, 2012.
• Dividends declared during the quarter ended March 31, 2013 were $0.26 per share compared with $0.25 per share for the prior year, an increase of 4.0%.

Ronald M. Bentley, President and CEO stated, "We are pleased that our financial performance remains strong despite the expected pressure on our net interest margin due to record low interest rates." Mr. Bentley continued, "Even though our level of non-performing assets has increased slightly from a year earlier, the ratio of non-performing assets to total assets, net of accruing troubled debt restructurings and accruing loans past due 90 days or more, continues to be a strong credit quality ratio at 0.61% versus 0.78% a year earlier."

Summary:

Chemung Financial Corporation reported net income of $2.4 million for the three months ended March 31, 2013, a decrease of $1.2 million, or 33.3%, compared with $3.6 million for the three months ended March 31, 2012. Earnings per share for the three months ended March 31, 2013, was $0.52 compared with $0.78 for the three months ended March 31, 2012. Return on average assets and return on average equity for the three months ended March 31, 2013, were 0.77% and 7.37%, respectively, compared with 1.18% and 11.34%, respectively, for the same period in the prior year.

The decline in 2013 earnings was due primarily to a decrease of $0.3 million in net interest income and reductions of $0.3 million in net gain on securities transactions and $0.8 million in pre-tax casualty gains from insurance reimbursements. In addition, non-interest expense increased $0.8 million. These items were partially offset by a reduction of $0.7 million in income taxes.

Net income of $2.4 million for the current quarter ended March 31, 2013 represents an increase of $0.3 million, or 13.2%, from net income of $2.1 million for the preceding quarter ended December 31, 2012. The increase was primarily due to an increase of $0.1 million in net interest income and a reduction of $0.9 million in non-interest expense. These items were partially offset by increases of $0.4 million in the provision for loan losses and $0.2 million in income taxes, along with a reduction of $0.2 million in non-interest income. Earnings per share for the current quarter totaled $0.52 compared with $0.46 for the preceding quarter. Return on average assets and return on average equity for the current quarter were 0.77% and 7.37%, respectively, compared with 0.67% and 6.33%, respectively, for the preceding quarter.

Net Interest Income:

Net interest income for the three months ended March 31, 2013 totaled $11.7 million compared with $12.0 million for the prior year, a decrease of $0.3 million, or 2.6%. Net interest margin was 4.07% for the three months ended March 31, 2013 compared with 4.29% for the same period in the prior year. The decline in net interest income was primarily due to a 40 basis point decrease in the yield on interest-earning assets, partially offset by an increase of $38.5 million in average earning assets. The decline in net interest margin was primarily due to yields on interest-earning assets decreasing at a faster rate than the cost of interest-bearing liabilities. The decrease in yield on interest-earning assets was attributable to lower loan yields as loans continue to reprice at current market rates.

Net interest income for the current quarter totaled $11.7 million compared with $11.6 million for the preceding quarter ended December 31, 2012, an increase of $0.1 million, or 0.7%. Net interest margin was 4.07% for the current quarter compared with 3.98% for the preceding quarter, due primarily to additional income accretion from our purchased credit impaired ("PCI") portfolio from prior acquisitions. Net of PCI adjustments, the net interest margin was 3.94% for the current quarter compared with 3.96% for the preceding quarter.

Non-Interest Income:

Non-interest income for the three months ended March 31, 2013 was $4.0 million compared with $4.9 million for the prior year, a decrease of $0.9 million, or 17.8%. The decline was primarily due to reductions of $0.8 million in casualty gains from insurance reimbursements and $0.3 million in net gain on securities transactions. These items were offset by an increase of $0.2 million in revenue from our equity investments.

Non-interest income for the three months ended March 31, 2013 was $4.0 million compared with $4.2 million for the preceding quarter ended December 31, 2012, a decrease of $0.2 million, or 4.1%. The decline was primarily due to decreases of $0.1 million in service charges on deposit accounts and $0.1 million in net gain on sales of loans held for sale.

Non-Interest Expense:

Non-interest expense for the three months ended March 31, 2013 was $11.7 million compared with $10.9 million for the prior year, an increase of $0.8 million, or 7.3%. The increase was primarily due to increases of $0.3 million in salaries and wages, $0.2 million in professional services and $0.1 million in pension and other employee benefits. The increase in salaries and wages was primarily due to compensation related to merit increases and incentive compensation. The increase in pension and other employee benefits was primarily due to higher pension costs and health benefits. The increase in professional services was due primarily to tax preparation costs for the Wealth Management Group. The tax preparation costs recorded in the first quarter of 2013 were level with 2012 costs, which were recorded in the second quarter of 2012.

Non-interest expense for the three months ended March 31, 2013 was $11.7 million compared with $12.6 million for the preceding quarter ended December 31, 2012, a decrease of $0.9 million, or 7.3%. The decrease was primarily due to decreases of $0.4 million in salaries and wages and $0.4 million in professional services. The decrease in salaries and wages was primarily due to incentive compensation recorded in the preceding quarter. The decrease in professional services was due to consultant fees recorded in the preceding quarter.

Asset Quality:

Non-performing loans totaled $16.8 million at March 31, 2013, or 1.82% of total loans, up slightly from $15.9 million, or 1.78%, at December 31, 2012. Non-performing assets which are comprised of non-performing loans and other real estate owned, totaled $17.4 million at March 31, 2013, or 1.36% of total assets, up slightly from $16.4 million, or 1.32%, at December 31, 2012. Excluding $6.3 million in accruing troubled debt restructurings and $3.2 million in accruing loans past due 90 days or more, the adjusted non-performing assets to total assets ratio was 0.61%.

Management performs an ongoing assessment of the adequacy of the allowance for loan losses based upon a number of factors including an analysis of historical loss factors, collateral evaluations, recent charge-off experience, credit quality of the loan portfolio, current economic conditions and loan growth. Based on this analysis, the provision for loan losses for the three months ended March 31, 2013 was $0.4 million, down slightly from the prior year. Net charge-offs for the three months ended March 31, 2013 were less than $0.1 million compared with net recoveries of less than $0.1 million for the prior year.

The provision for loan losses for the three months ended March 31, 2013 was $0.4 million compared with $0.1 million for the preceding quarter ended December 31, 2012. The increase in the provision for loan losses is primarily due to the growth in portfolio loans. Net charge-offs for the current quarter were less than $0.1 million compared with $0.5 million for the preceding quarter.

At March 31, 2013 the allowance for loan losses was $10.8 million, compared with $10.4 million at December 31, 2012, and $10.3 million at March 31, 2012. The allowance for loan losses was 64.44% of non-performing loans at March 31, 2013, compared with 65.70% at December 31, 2012 and 67.93% at March 31, 2012. The ratio of the allowance for loan losses to total loans was 1.17% at March 31, 2013, level with December 31, 2012, and down from 1.28% at March 31, 2012.

Balance Sheet Activity:

Assets totaled $1.280 billion at March 31, 2013 compared with $1.248 billion at December 31, 2012, an increase of $31.8 million, or 2.5%. The growth was primarily due to increases of $27.9 million, or 3.1%, in total portfolio loans and $5.9 million in cash and cash equivalents. The increase in portfolio loans was due to strong growth of $27.0 million in commercial loans.

Deposits totaled $1.077 billion at March 31, 2013 compared with $1.045 million at December 31, 2012, an increase of $32.4 million, or 3.1%. The growth was primarily due to increases of $21.9 million in money market accounts, $11.5 million in interest-bearing demand deposits and $7.8 million in savings deposits. These items were partially offset by decreases of $4.2 million in non-interest-bearing demand deposits and $4.6 million in time deposits.

Total equity was $132.9 million at March 31, 2013 compared with $131.1 million at December 31, 2012. The total equity to total assets ratio was 10.38% at March 31, 2013 compared with 10.50% at December 31, 2012. The tangible equity to tangible assets ratio was 8.47% at March 31, 2013 compared with 8.53% at December 31, 2012. As of March 31, 2013, both the Corporation's and the Bank's capital ratios were in excess of those required to be considered well-capitalized under regulatory capital standards.

Other Item:

The market value of total assets under management or administration in our Wealth Management Group was $1.833 billion at March 31, 2013 compared with $1.735 billion at December 31, 2012 and $1.704 billion at March 31, 2012.

About Chemung Financial Corporation:

Chemung Financial Corporation is a $1.3 billion financial services holding company headquartered in Elmira, New York and operates 28 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full-service community bank with 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: www.chemungcanal.com under Shareholder Info.

Forward-Looking Statements:

This press release may contain 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. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these sections. All statements regarding, among other things, the Corporation's expected financial condition and results of operations, the Corporation's business strategy, the Corporation's financial plans, forecasted demographic and economic trends relating to the Corporation's industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation's use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect," or "intend." The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Corporation's actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, difficulties in managing the Corporation's growth, competition, changes in law or the regulatory environment, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and changes in general business and economic trends. Information concerning these and other factors can be found in the Corporation's periodic filings with the Securities and Exchange Commission, including in our 2012 Annual Report on Form 10-K. These filings are available publicly on the SEC's website at http://www.sec.gov, on the Corporation's website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

CONTACT: Mark A. Severson, EVP and CFO
         Phone: 607-737-3714