Goodwill officials and Chamber of Commerce leaders celebrate the store's expansion in Batavia on Friday morning with a ribbon cutting. Photo courtesy WBTA.
Batavia's Goodwill store at 4152 West Main St. celebrated its expansion Friday morning with a ribbon cutting hosted by the Genesee County Chamber of Commerce.
The expansion doubled the thrift store's retail space and added a covered drive-up donation center.
Goodwill has operated at its current location since May 2013 and has been expanded from 9,285 to 21,506 square feet and now has 18 full- and part-time employees.
Goodwill officials say the location is now one of the agency's largest in Western New York. It features an open layout allowing it to expand space for donated men’s, women’s, and children’s clothing. The store also features a broad array of previously owned housewares, decorative items, small appliances, electronics, and furniture.
“With individuals and families looking for ways to cut their clothing and household budgets, we are proud to be able to expand our offerings in Batavia,” said Thomas Ulbrich, Goodwill of Western New York president and CEO, in a statement. “We serve a very wide range of customers from all across Genesee County, and we are proud to be a resource for families in such a great community.”
The drive-up donation center is on the side of the building facing Main Street and offers donors a quick and convenient -- and covered -- way to donate gently used, unwanted items to the store to support workforce development programs across the region.
The story is open from 9 a.m. to 8 p.m. Monday through Saturday and 10 a.m. to 5 p.m. on Sundays.
Royals Barber Shop owner Brandon Armstrong with barbers Julio Vazquez and Stephen Wapniewski Photo by Howard Owens.
As far as Brandon Armstrong knows, his is the only black-owned barbershop, in Genesee County.
In honor of Black History Month, Armstrong held an open house on Thursday morning, with coffee and donuts, to both celebrate the month and to officially unveil his new logo and new business model for Royals Barber Shop at 317 Ellicott St., Batavia.
When Armstrong opened his first barbershop at Ellicott and Liberty (now Eden Cafe) in 2011, it was likely the first new barbershop in Batavia in a number of years, after a long period in which stylists were in vogue and barbers were passé. In the years since, four or five new barbershops have opened locally, though a couple didn't last long.
More than a dozen years since that first venture, Armstrong is still in the barbering business, and he says he's stuck with it both because it's a lucrative business and because he enjoys it.
"I feel like it's one where you can be yourself a little bit more," Armstrong said. "It's nothing too uptight, but it's still super professional. You can still be yourself. A lot of it's not really too hard of work, I feel like, but it still can be hard work. It's an equal balance of everything."
The new logo comes with a change in the business that he hopes will serve the business better, his customers better, and his employees better. Unlike most salons and barbershops, his barbers are members of the staff, earning an hourly rate plus commissions. It's no longer like they own their own businesses, with all the consequences and responsibilities that go with being self-employed, but they're getting a regular paycheck.
"Now they're bankable barbers -- that's my thing, being bankable barbers," Armstrong said. "Being bankable barbers means they will be able to bring their pay stubs to the bank and get a house or get a loan for a car."
Armstrong said with employees instead of contractors, he will be able to better maintain regular hours, which will benefit customers. Also, with booth rental, there is also a cap on how much money can flow into the business.
"From what I'm learning is that you can't really scale the business, if you aren't being able to profit the right amount and put it back into your business," Armstrong said. "This way, we're able to get some money flowing through the business and be able to get loans for the business. It means being able to scale the business."
Now that he's a proven entrepreneur with a track record of success, what advice does he have for young people in the community, particularly people of color, in light of Black History Month, who are drawn toward going into business for themselves?
"Be the best that you can be," Armstrong said. "Work the hardest. You can outwork your competition. Whatever you're involved with, you have to practice at it, and you have to become the best at what you do. Try to be the best at what you do. Practice makes perfect. Whatever it is that you're involved in, make sure you're practicing and working hard, and it'll pay off."
Graham Corporation (NYSE: GHM), a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, announced that it will release its third quarter fiscal year 2024 financial results before financial markets open on Monday, Feb. 5.
The Company will host a conference call and webcast to review its financial and operating results, strategy, and outlook. A question-and-answer session will follow.
Third Quarter Fiscal Year 2024 Financial Results Conference Call
Date: Monday, Feb. 5
Time: 11:00 a.m.
Phone: (201) 689-8560
Internet webcast link and accompanying slide presentation: ir.grahamcorp.com.
A telephonic replay will be available from 3:00 p.m. on the day of the teleconference through Monday, February 12, 2024. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13743383 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.05 for the fourth quarter of 2023, down 22.8% compared to the fourth quarter of 2022. Net income for the fourth quarter of 2023 was $15.0 million, down $4.5 million or 23.3% compared to the $19.5 million reported for the fourth quarter of 2022. Contributing to the lower quarterly results were increased funding costs and increased operating expenses, which included costs related to three branch closures during the fourth quarter of 2023 as well as personnel-related charges.
For the year ended December 31, 2023, diluted earnings per share of $0.66 were down 88.8% compared to the year ended December 31, 2022. Net income for 2023 was $9.5 million, a decrease of $75.5 million compared to the year ended December 31, 2022. Significant contributors to the year-over-year decrease in net income included a previously announced after-tax loss of $52.9 million, or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities, increased funding costs and an increase in operating expenses. The sale of securities and subsequent reinvestment in the second and third quarters of 2023 is favorably impacting securities revenue as the securities sold had an average yield of 0.86%, while the proceeds of the sale were largely reinvested into securities with an estimated yield of approximately 5.09%. Average yields on securities for the fourth quarter of 2023 were 2.33%, compared to 1.59% for the third quarter of 2023, and 1.44% for the fourth quarter of 2022.
Tompkins President and CEO, Stephen Romaine, commented, "In the fourth quarter we continued to execute on strategic initiatives and are pleased to announce our expanded presence in Syracuse with the grand opening of our City Center office. For the quarter we saw positive momentum with our net interest margin expanding, strong quarterly loan growth driving full-year loan growth of 6.4%, signs of stabilization in our deposit base, and growth in our noninterest-related revenue. During the quarter we also recognized non-recurring expenses relating to three branch closures and other personnel-related expenses intended to help offset future expense growth. While the economic environment remains challenging for the industry we look forward to 2024 with our strong capital and liquidity position to continue to drive growth of quality customer relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
Net interest margin for the fourth quarter of 2023 expanded to 2.82%, compared to 2.75% for the third quarter of 2023.
Total loans at December 31, 2023, were up $171.1 million, or 3.2% (12.6% on an annualized basis), compared to the immediate prior quarter, and up $337.0 million, or 6.4%, from December 31, 2022.
Total deposits at December 31, 2023 were $6.4 billion, down $223.6 million, or 3.4% (13.5% on an annualized basis), from September 30, 2023, and down $202.5 million, or 3.1%, from December 31, 2022.
Loan to deposit ratio was 87.6%, compared to 82.1% for the immediate prior quarter.
Regulatory Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023 and 9.34% at December 31, 2022.
NET INTEREST INCOME
Net interest income was $52.4 million for the fourth quarter of 2023, up from $51.0 million for the third quarter of 2023 and down from $57.3 million for the fourth quarter of 2022. Net interest margin was 2.82% for the fourth quarter of 2023, compared to 2.75% reported for the third quarter of 2023 and 3.02% reported for the fourth quarter of 2022. The increase in net interest income and net interest margin during the fourth quarter of this year compared to the third quarter of 2023 was primarily due to securities purchased in the second and third quarters of 2023 yielding higher interest rates compared to securities sold during the same periods. The increase in securities yields was partially offset by the reversal of $1.0 million of accrued interest during the fourth quarter related to loans that moved to nonaccrual status during the quarter, as described further below under the heading Asset Quality. The decreases in net interest income and net interest margin compared to the fourth quarter of last year were primarily attributable to increased interest costs on interest-bearing liabilities outpacing increased interest income on interest-earning assets due to the higher interest rate environment.
For the year ended December 31, 2023, net interest income was $209.5 million, down $20.8 million, or 9.0%, when compared to the same period in 2022.
Average loans for the quarter ended December 31, 2023, were up $101.5 million, or 1.9%, from the third quarter of 2023, and were up $277.0 million, or 5.3%, compared to the quarter ended December 31, 2022. The increase in average loans over both prior periods was mainly in the commercial real estate portfolio. The average yield on interest-earning assets for the quarter ended December 31, 2023, was 4.3%, which was up from 4.1% for the quarter ended September 30, 2023, and up from 3.6% for the quarter ended December 31, 2022.
Average total deposits for the fourth quarter of 2023 were up $58.4 million, or 0.9%, compared to the third quarter of 2023, while period-end balances were down $223.6 million compared to the third quarter of 2023 driven by seasonal deposit trends. Average deposits for the quarter were down $227.8 million, or 3.4%, compared to the same period in 2022. The decrease compared to the prior year was largely driven by inflation and persistent rate competition for deposits due to the current interest rate environment and tightening monetary policy. The cost of interest-bearing deposits increased to 2.04% for the fourth quarter of 2023, compared to 1.74% for the third quarter of 2023, and 0.69% for the fourth quarter of 2022. The cost of interest-bearing deposits for the fourth quarter of 2023 increased 135 basis points compared to the fourth quarter of 2022, and 123 basis points for the year ended December 31, 2023 compared to the same period in 2022. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2023 was 29.6% compared to 31.0% for the third quarter of 2023, and 30.8% for the year ended December 31, 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2023 of 2.25% represents an increase of 27 basis points over the third quarter of 2023, and an increase of 141 basis points over the same period in 2022.
NONINTEREST INCOME
Noninterest income of $18.9 million for the fourth quarter of 2023 was up 2.7% compared to the same period in 2022. The increase was mainly due to gains on securities transactions of $46,000 compared to losses on securities transactions of $455,000, and increases in fee-based revenues which include insurance commissions and fees, up $143,000, wealth management fees, up $181,000 and card services income, up $68,000.
Noninterest income for the year ended December 31, 2023, was $10.2 million, which represents a decrease in noninterest income of $67.7 million compared to the same period in 2022. The decrease in noninterest income was largely due to the previously noted sales of available-for-sale debt securities, mainly in the third quarter of 2023, which resulted in the recognition of a pre-tax loss of $70.0 million for the year ended December 31, 2023. Fee-based revenues, including insurance commissions and fees, wealth management fees, service charges on deposit accounts, and card services income, for the year ended December 31, 2023, were collectively up $1.0 million, or 1.4%, over the same period in 2022.
NONINTEREST EXPENSE
Noninterest expense was $51.3 million for the fourth quarter of 2023, which was up $1.1 million, or 2.2%, over the fourth quarter of 2022. The increases were mainly in premises and furniture and fixtures, up $799,000, and other operating expenses, up $1.7 million; partially offset by lower salaries and wages. The increase in premises and furniture and fixtures was mainly due to $720,000 of expenses related to branch closures. Contributing to the increase in other operating expenses were: FDIC expenses, up $723,000; technology, up $434,000; expenses related to the Company's retirement plans, up $428,000; charitable contributions and donations, up $315,000; and accrual for New York State minimum tax, up $207,000. Salaries and wages included $638,000 of personnel-related charges, which were more than offset by lower incentive-related accruals.
For the year-to-date period, noninterest expense of $203.3 million was up $7.5 million, or 3.9%, from the same period in 2022. The increase in noninterest expense for the year ended December 31, 2023, over the same period in 2022 was mainly in employee benefits and other noninterest expenses. The increase in employee benefits was mainly in health insurance, which was up $1.8 million. Salaries and wages were down as annual merit increases were offset by lower incentive-related accruals. Contributing to the increases in other expenses were the following: FDIC insurance, up $1.5 million; New York State minimum tax expense, up $830,000; professional fees, up $604,000; and charitable donations, up $317,000. Premises and furniture and fixtures expenses were up over the prior year mainly as a result of expenses related to branch closures of $879,000.
INCOME TAX EXPENSE
The provision for income tax expense of $3.1 million for an effective rate of 17.2% for the fourth quarter of 2023, compared to tax expense of $4.5 million and an effective rate of 18.6% for the same quarter in 2022. The fourth quarter of 2023 included the impact of surrendering certain separate account BOLI policies, which added $1.8 million to tax expense for the quarter. For the year-ended 2023, the provision for income tax expense of $2.5 million for an effective rate of 20.6% compared to tax expense of $24.6 million and an effective rate of 22.4% for the same period in 2022. The decrease in income tax expense between comparable periods reflects the decrease in pre-tax income, due primarily to the realized losses on the sale of certain available-for-sale securities.
ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans and leases at December 31, 2023, up from 0.91% at September 30, 2023, and up from 0.87% at December 31, 2022. The ratio of the allowance to total nonperforming loans and leases was 82.84% at December 31, 2023, compared to 156.96% at September 30, 2023, and 139.86% at December 31, 2022. The decrease in the ratio compared to prior periods was due to the increase in nonperforming loans and leases discussed in more detail below.
Provision for credit losses for the fourth quarter of 2023 was $1.8 million compared to $1.4 million for the same period in 2022. Provision for credit losses for the year ended December 31, 2023, was $4.3 million, compared to $2.8 million for the year ended December 31, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by loan growth, economic forecasts, and changes in asset quality. Net charge-offs for the fourth quarter of 2023 were $410,000 compared to net charge-offs of $190,000 reported for the same period in 2022.
Nonperforming assets represented 0.80% of total assets at December 31, 2023, up from 0.41% reported at September 30, 2023, and 0.43% at December 31, 2022. At December 31, 2023, nonperforming loans and leases totaled $62.3 million, compared to $31.4 million at September 30, 2023, and $32.8 million at December 31, 2022. The increase in nonperforming loans at quarter-end December 31, 2023, was mainly due to the addition of one relationship with two commercial real estate properties in the hospitality portfolio totaling approximately $33.8 million. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of December 31, 2023. These loans were included in loans past due 30-89 days and accruing at the end of the third quarter of 2023. Loans past due 30-89 days and accruing as a percentage of total loans decreased from 0.75% at the end of the third quarter of 2023 to 0.08% at the end of the fourth quarter of 2023.
Special Mention and Substandard loans and leases totaled $123.1 million at December 31, 2023, reflecting an increase from the $122.9 million reported at September 30, 2023, and $98.3 million reported at December 31, 2022.
CAPITAL POSITION
Capital ratios at December 31, 2023, remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.36% at December 31, 2023, compared to 13.46% at September 30, 2023, and 14.42% at December 31, 2022. The ratio of Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023, and 9.34% at December 31, 2022.
LIQUIDITY POSITION
The Company's liquidity position at December 31, 2023, was stable and consistent with the immediately prior quarter. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of $1.4 billion, or 18.3% of total assets as of December 31, 2023. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At December 31, 2023, the Company had an available borrowing capacity at the FHLB of $642 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At December 31, 2023, the available borrowing capacity with the Federal Reserve Bank was $92.6 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at December 31, 2023, the Company maintained $687.0 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.
Shelia Eigenbrod, education consultant for GCEDC, making a presentation to the GCEDC board of directors on Thursday. Photo by Howard Owens.
When you're charting a new path, you need a roadmap, and Shelia Eigenbrod, a year into her new job with the Genesee County Economic Development Center, has exactly that in mind.
The map would help inform high school students about career opportunities in Genesee County and what it might take to land the jobs that will put them on a path to a good salary with no college debt.
Eigenbrod, a retired Pavilion Middle School principal, is GCEDC's education consultant.
She told The Batavian after a GCEDC board of directors meeting on Thursday that her roadmap project is "very exciting."
"It's like a typical old-school map," Eigenbrod said. "It unfolds. It will contain all of the industries in Genesee County, especially those focused on advanced manufacturing. It'll designate the types of hires, whether it's engineers, skilled trades, technicians, or apprenticeship programs, and will have a lot of descriptions so that students and school counselors understand what mechatronics is, what CNC is, what advanced manufacturing is, and will also connect to workforce development."
The roadmap was the focus of her presentation on Thursday to the GCEDC board.
"This is something that is meant to be attractive to and understandable for all the guidance counselors and school officials," Eigenbrod said. "It's also something easier to hand out to students. I know we're going to compete with a lot of college materials, the mountain of stuff every graduating senior gets, but really, the message here is all the great careers we have in our community that are, no doubt, we have training programs already set up in our BOCES (and at Genesee Community College)."
She expects the map to be a nice handout at school open houses, parent meetings, and career fairs.
"We've identified a lot of the companies in Genesee County," Eigenbrod said. "We're going to have descriptors of what the company produces, their type of workforce, number of people if they're intending to hire, and if they are looking for apprenticeships, skilled trades, engineers, and technicians."
In response to board questions, she said she also expects to include information on local businesses in need of back-office help, such as accountants and other financial workers.
The map will point students to resources for training for the type of jobs available.
"I really want educators to understand what is going on, and these career pathways," she said.
How big of a leap is it to go from chef at one of Batavia's best restaurants to owning your own heating and air conditioning installation and repair business?
Not as far as you might think, says Hassan Silmi, who spent a decade in the kitchen of Alex's Place on Park Road to owning Batavia-based Lion HVAC.
In a busy kitchen, Silmi noted, things break, things that are often in need of immediate repair. So when things broke, Silmi set aside his sauté pan and picked up a screwdriver or wrench.
"It's one of those things where maybe I could figure out, get this thing running again and not ruin my Friday or my Saturday cooking at the restaurant," Silmi said. "Besides, whoever you're going to call on a Friday or Saturday night, they will charge you exorbitant money, and that's usually when everything breaks at the restaurant. So it was one of those things -- I could figure it out."
There's also, like cooking, a creative aspect to HVAC work. You might work off a menu, preparing preset recipes, but sometimes you just have to find the right way to do something different.
"There's still a decent amount of puzzle figuring things out," Silmi said. "I could install a furnace, and another guy could easily look at it completely differently and take, you know, the utilities from any direction. Everyone has their own visual look at how they are going to hook it up. How are we going to connect to the boiler? How are we going to branch this system out? The ductwork. One company's work isn't going to look the same if I do it or some other company does it. There's enough diversity, but to the average person, it's like, how it works is how it works."
Silmi is a Batavia High School graduate and went through the culinary arts program at BOCES. While BOCES exposed him to the idea of working in a trade, he said even then, he could have chosen a different path.
"There were a lot of things that intrigued me," Silmi said. "I could have easily gone into auto, or I could have easily gone into carpentry or easily went into heating and cooling, but I was intrigued by food at one point. It (BOCES) was definitely helping to keep the mindset to want to stay in the trades."
During his years in the restaurant business Silmi did well enough and managed his money well enough that he could buy some rental properties. That was the next phase of his move toward entering the heating and cooling business. He had to be his own handyman on his rental properties.
"It was always one of those things where I enjoyed the mechanical aspect of everything," Silmi said.
A few years ago, he decided to leave his job at Alex's Place and enroll in the HVAC program at Monroe Community College. While there, he took additional electrical classes, additional plumbing classes, as well as welding.
He started doing work for friends and family, and he had a neighbor who was a contractor. He was struggling to find trade help, so he started working with him, and that led to Silmi thinking, "I can make this work."
He struck out on his own nearly a year ago.
While he's a one-man operation, he said he's keeping busy doing both commercial and residential work.
By background and training, he said, he's become a bit of a jack-of-all-trades.
"I find myself, like, 'Oh, your dryer's not working. Let me take a look at it," Silmi said. "But in order to go heating and cooling, it's really because you have to know gas, you have to know electric, you have to know plumbing. You can't just dabble in things."
With great pleasure, we announce that effective January 1, our firm will be known as DiMatteo, Roach & Kelly, Attorneys at Law. This change marks the addition of our new partner, Marshall Kelly, Esq., a longstanding member of the local legal community.
His experience will expand our diverse practice into the area of criminal law and will support our already busy probate and estate administration practice.
As we look back on thirty-four years of representing clients in Wyoming, Genesee, Livingston, and Allegany Counties, and beyond, we are thankful for the relationships we have developed and the trust that our clients and colleagues have in the professional services our dedicated team provide.
Looking forward, we are proud to say that our firm is stronger than ever. We are eager to bring that strength to bear as our collective goal continues to be a law practice where trust, personal care, excellence, and friendship define success for our clients and ourselves.
Creating and filling a newly developed position within the company, Tompkins Insurance Agencies has named Katelyn Fowler training team leader. In this post, Fowler will onboard all newly hired commercial insurance account managers and account executives to ensure that all programs, processes, and procedures align with the company’s high standards of excellence. She will also train and share client service practices with current employees as the agency’s standards and client needs evolve. Fowler will report out of the Ithaca headquarters and work with teams across all Tompkins Insurance Agencies offices in Central New York, Western New York, and Southeast Pennsylvania.
Fowler is an insurance industry veteran with more than 15 years of commercial lines expertise. Ten years of that experience took place at Tompkins Insurance Agencies where, as commercial lines marketing specialist, she fostered relationships with underwriters to help achieve agency goals, assisted producers and the small business team with market and insurance knowledge, and oversaw a large book of business for the agency. She returns to Tompkins Insurance Agencies after serving as commercial lines marketing manager for Reagan Companies in Marcellus, New York, where she managed a team of account executives and handled carrier relations.
“It’s a pleasure to welcome Katelyn back to the Tompkins team in this newly formed position,” says Kim Nevinger, vice president and commercial insurance department manager, at Tompkins Insurance Agencies. “With Katelyn’s experience in both account management and marketing, as well as her history with Tompkins Insurance Agencies, she has a deep understanding of all aspects of the business, both internal and external. Her appointment as training-team leader represents our commitment to excellence for both employees and clients of Tompkins Insurance Agencies, and we have no doubt she’ll succeed in this role.”
As a five-time honoree of the Independent Insurance Agents & Brokers of America “Best Practices” agency designation, and a “Best Agency to Work For” distinction given thanks to employee votes in multiple regional and national rankings, employee growth and client service excellence are important values to the Tompkins Insurance Agencies leadership. With a training team leader in place to handle the process and training responsibilities that were once handled by the individual market team leaders and account managers, leaders can now focus on the team’s efficiency and consistency. “The end result is a happier and more supported team, who can bring even more consistency, reliability, and excellence to clients,” adds Nevinger. “The development of the training-team leader position represents our promise of providing personalized, premium, and top-tier services to our commercial clientele.”
Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, today announced that Daniel J. Thoren, President and CEO, and Christopher J. Thome, Vice President - Finance and CFO, will present and host investor meetings at the Noble Capital Markets 19th Annual Emerging Growth Equity Conference in Boca Raton, FL on Monday, Dec. 4, and Tuesday, Dec. 5.
A webcast of the Graham presentation, along with presentation materials, will be available on the Company's investor relations website starting at 2 p.m. ET on Tuesday, Dec. 5.
Oak Orchard Health (OOH) was awarded the Community Health Quality Recognition (CHQR) Badges for Health IT and Patient-Centered Medical Home (PCMH) by the Health Resources & Services Administration (HRSA). CHQR badges recognize Health Centers that have made notable achievements in the areas of access, quality, health equity, health information technology, social risk factors screening, and COVID-19 public health emergency response using Uniform Data System (UDS) from the most recent reporting period.
“We’re excited to receive this recognition, especially the Health IT badge. With a vast base of over 30,000 patients in rural areas, technology helps us keep our patients healthy. Whether it’s by using our electronic medical records system or our patient portal, our providers and patients have access to information that helps Oak Orchard diagnose and treat our patients efficiently,” said Karen Kinter, CEO, Oak Orchard Health.
Oak Orchard Health was awarded the Health IT badge because it met all the following criteria:
Adopted an electronic health record (EHR) system.
Offered telehealth services.
Exchanged clinical information online with key providers' health care settings.
Engaged patients through health IT.
Collected data on patient social risk factors.
“Oak Orchard has been staying at the forefront of technology to document medical information efficiently and improve our access to patients. We encourage our patients to use the patient portal because they will have access to their medical information, be able to ask questions of their medical providers and request medication refills. Telehealth has been a breakthrough for our patients because of the challenges many have with transportation and other barriers that keep them from coming into the health centers. Now they can receive medical or behavioral health care from home using their telephone, tablet, or computer,” said Jason Kuder, Chief Information Officer, Oak Orchard Health.
An expansion of its commercial banking team, Tompkins Community Bank has appointed Sean Quinn as regional manager, of commercial banking. With 23 years of experience in the banking industry, Quinn most recently served as the senior vice president and relationship manager at M&T Bank. In his new role, Quinn will oversee Tompkins’ present and prospective banking relationships within the Buffalo market.
“Sean’s dedication to enhancing customers’ experience is reflective of our mission as a community bank,” said Diane Torcello, president of Tompkins’ Western New York market. “We are confident that his industry experience and strong leadership abilities will be an asset to our Buffalo team, for both Sean’s colleagues and clients.”
Quinn holds degrees in finance and management from SUNY Fredonia and St. Bonaventure University. He resides in Hamburg, New York with his wife and three children.
Brian Cousins, president of the Genesee County Chamber of Commerce.
After approving a new slate of directors for the board, Genesee County Chamber of Commerce members heard a recap of a busy 2022 from Chamber President Brian Cousins.
The year started with the annual awards banquet at Batavia Downs, attended by more than 300 people. That was followed by the Celebrate Ag Dinner in Alexander, attended by more than 400 people. After that, chamber staff got busy hosting the annual Home Show at the David M. McCarthy Memorial Ice Arena in Batavia. During the summer, the chamber hosted its annual golf and bocce ball tournament. In the fall, there was the annual Decision Makers Ag Tour.
And then there were ribbon cuttings. Lots and lots of ribbon cuttings. There are always ribbon cuttings.
"We get requests all the time for business openings, business milestones -- Tom Turnbull (former chamber president) always taught -- and this was probably the best thing ever taught me -- that everyone always loves a good ribbon cutting," Cousins said. And it's true. A lot of people did a ton of good things in the community this year. I'm very proud of our ability to go out and support them. We probably literally had one to two requests a week. Sometimes we had two a day."
Cousins also praised the monthly Business After Hours, held at a different Chamber member location each time, as a great way to network and form important if not lasting business connections.
All of those big events return in 2024:
Chamber Awards, March 2.
Celebrate Ag Dinner, March 16
Home Show, in March
Gold and Bocce, at Terry Hills this year on July 18
Decision Maker's Ag Tour, being planned, date to be determined
And one of the highlights, surely, if the weather cooperates, of 2024 will be the viewing of the eclipse on April 8.
The chamber's Tourism Bureau has been preparing for months -- there have been 50 meetings, 15 in-person talks, several monthly Zoom sessions, and "Jenny," the cow mascot, has made numerous public appearances.
And 2023 has been a good year for tourism, Cousins said.
"We are going to have a record year in terms of visitor spending into our county -- upwards of about $209 million total, sustaining about $65 million in tourism payroll. It's amazing," Cousins said.
New members of the Chamber board of directors:
Mickey Hyde, immediate past chair
Kristina Raff, with Nortera
Mark Brooks, with Tompkins
Michael Battaglia, Prudential
Megan Palone, Oliver's Candies
Jocelyn Sikorski, Cornell Cooperative Extension
Jeremy Liles, Oliver's Candies.
The new board chairman is John Whiting of the Whiting Law Firm.
Photo via Genesee County Economic Development Center.
Uncertain about its ability to raise more investment capital, Plug Power, currently building a hydrogen fuel cell plant in WNY STAMP informed the Security and Exchange Commission in a filing on Friday that it may not have the ability to remain a "going concern" over the next 12 months.
The Latham-based company started selling public stock in 1999 and has never reported a profit, which is not unusual for early-stage start-ups.
The company is working on several options to raise more capital, such as "various financing solutions from third parties with a particular focus on corporate level debt solutions, investment tax credit related project financings and loan guarantee programs, and/or large scale hydrogen generation infrastructure project financing."
The net losses for Plug Power in the third quarter were $0.47 per share for the third quarter, steeper than the $0.30-per-share loss expected by analysts.
In the filing, the company emphasizes the uncertainty of the effort.
"Those plans are not final and are subject to market and other conditions not within the Company’s control," the company stated in the filing. "As such, there can be no assurance that the Company will be successful in obtaining sufficient funding. Accordingly, management has concluded under the accounting standards that these plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern.
News of the weaker-than-expected earnings report and the liquity problems drove Plug Power's stock price down from $5.93 per share to $3.53 per share.
Plug Power's chief financial officer, Paul Middleton, according to Yahoo Finance, characterized the wording of SEC filing as language required by standard accounting principles but the company remains confident about its future.
"It's a lot more conservative obviously than what we feel like," Middleton added. "But I have a $5 billion balance sheet that's unlevered. I mean, I really don't have any debt. So, we still are extremely confident about the range of parties and solutions that we're working with."
The company reported $5.4 billion in assets, including $110 million in cash with an operating loss in the third quarter of $273.9 million.
The Company’s working capital was $1.3 billion as of Sept. 30, In addition, the company has available-for-sale securities and equity securities of $388.8 million and $67.8 million, respectively.
The company stated that it "expects to generate operating losses for the foreseeable future as it continues to devote significant resources to expand its current production and manufacturing capacity, construct hydrogen plants, and fund the acquisition of additional inventory to deliver our end-products and related services."
CEO said in an earnings call that the third quarter was difficult.
"Over the past several months, there have been enormous challenges associated with the availability of hydrogen, primarily due to downed plants, including our Tennessee facility, and temporary plant outages across the entire hydrogen network," he said.
Plug Power is building a $290 million fuel cell plant at STAMP in the Town of Alabama. The company is being (most of the funding is contingent on completion of the project) financially backed by the Genesee County Economic Development Center and New York State.
A GCEDC official did not immediately respond to a request for comment on the SEC filing.
Here is the full paragraph of a key statement in the filing:
These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern. In accordance with Accounting Standards Update ("ASU") No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40),” management has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date of the condensed consolidated financial statements are issued and has determined that the Company’s ability to continue as a going concern is dependent on its ability to raise additional capital. To alleviate the conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern, management is currently evaluating several different options to enhance the Company’s liquidity position, including the sale of securities, the incurrence of debt, or other financing alternatives. The Company’s plan includes various financing solutions from third parties with a particular focus on corporate-level debt solutions, investment tax credit-related project financings and loan guarantee programs, and/or large-scale hydrogen generation infrastructure project financing. Those plans are not final and are subject to market and other conditions not within the Company’s control. As such, there can be no assurance that the Company will be successful in obtaining sufficient funding. Accordingly, management has concluded under the accounting.
Tompkins Financial Corporation (Tompkins) announced that Charles “Chuck” Guarino has been promoted to chief banking operations officer, a newly created position for the organization. Over the past five years with Tompkins, Guarino has effectively led mortgage sales and operations and small business lending, including a successful implementation of the Paycheck Protection Program (PPP) lending initiative, which generated over 3,000 loans.
Prior to joining Tompkins, Guarino spent more than two decades in banking and financial management, overseeing all aspects of consumer, home equity, residential, and small business lending, as well as analyzing risk in retail loan portfolios, recommending policy, procedure, and guideline adjustments.
Guarino comes to this position as a final step in realigning the responsibilities of chief financial officer and chief operations officer of Tompkins Financial, Francis Fetsko, who will be retiring at the end of 2024. In his new role, Guarino will be responsible for overseeing Tompkins Financial Corp.'s technology and banking operations throughout the four markets it serves. He will report to Steve Romaine, president and CEO of Tompkins Financial.
“Chuck has led the retail and small business lending team at Tompkins Financial exceptionally well over the past five years and is ready for this expanded role,” said Romaine. “His strategic vision and ability to align resources and effectively execute are critical to his new role. I have had the pleasure of engaging with him on the Central New York leadership team and have watched him execute strategic plans to help our clients succeed. It is rewarding to know the Tompkins organization empowers our team and allows us to fill this position from within our current ranks. I look forward to Chuck’s contribution and collaboration as he joins our senior leadership team.”
Guarino is active in his community, previously holding positions as first vice chairperson on the board of directors of the Urban League of Rochester, past vice president of Resolve of Greater Rochester, and as a past campaign cabinet member of United Way of Wyoming County. He currently serves as a committee member for the marketing and fundraising committee of Hub585. Guarino is a member of the 1997 graduating class of SUNY Geneseo’s Jones School of Business, holding a bachelor of science in management. He also holds a master's degree in business administration from the University of Rochester Simon Business School and was inducted into the Beta Gamma Sigma Honor Society.
Graham Corporation (NYSE: GHM ) (“Graham” or the “Company”), is a global leader in the design and manufacture of mission-critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, announced a record level of monthly orders in October 2023.
The Company received approximately $110 million in total orders in October 2023, primarily related to follow-on orders for critical U.S. Navy programs. These defense orders are expected to be recognized in revenue beginning in the fourth quarter of fiscal 2025 through early fiscal 2030.
Daniel J. Thoren, President and CEO, commented, “We are proud to be a strategic supplier for the U.S. Navy providing highly valued vacuum, heat transfer, turbomachinery, and other critical equipment to support the U.S. Navy’s Naval Nuclear Propulsion Program. The follow-on orders received this month continue to validate our key role in the Columbia Class submarine and Ford Class carrier programs. These programs are essential for the future safety and security of our country and the team at Graham recognizes the vital role our equipment plays and the necessity to deliver essential components to our customers.”
Expanding the capabilities of its Western New York (WNY) management team, Tompkins Community Bank has appointed two new branch managers, Jacob Hale in Chili and Sean Valdes in Perry. In their new roles, Hale and Valdes will oversee their respective branches, cultivating relationships with other businesses in the communities and ensuring that customers’ needs are met.
“The addition of Jacob and Sean to our management team ensures that we will continue to provide personalized guidance to help clients grow our community,” said Laura Geary, vice president, and community banking manager. “I am personally excited to see Sean’s and Jake’s experience in action and know that our clients and community in both Perry and Chili will benefit from working with these dedicated professionals.”
Submitted photo of Jacob Hale.
Previously, Hale served as the assistant manager of Tompkins’ Batavia branch. A dedicated employee, Hale has consistently been recognized by Tompkins, earning the company’s Rising Star and Top Sales Performer Awards in 2020 and then again in 2022 as well as externally, recently winning GLOW’s Best of the Best Banker for 2023. Hale currently serves as a board member for the United Memorial Medical Center Foundation, Rochester Regional Health (UMMC), and volunteers with the Michael Napoleone Memorial Foundation and Junior Achievement of Western New York. He and his fiancée, Alicia Alexyn, reside in Chili and are expecting their first son this November.
Submitted photo of Sean Valdes.
A SUNY Brockport’s business administration program graduate, Valdes previously owned and operated D & R Depot Restaurant & Catering Services, in Le Roy, for over 25 years. Valdes consistently grew his business, fostering relationships within the community to encourage economic development. Valdes hopes to bring this customer-centric view to his new role, working to ensure that members of the Perry community have access to the banking solutions that will help them achieve their goals. A founding member of the Kiwanis Club of LPS (Le Roy, Pavilion, and Stafford), Valdes also served as the vice president of small business for the Le Roy Business Council. Additionally, the Le Roy Rotary Club recognized Valdes with the Paul Harris Fellowship Award in 2021. Valdes currently resides in Le Roy with his wife, Jen, and two daughters.
The Genesee County Chamber of Commerce Annual will be hosting its Annual Membership Meeting on Nov. 16 at Terry Hills Golf Course & Banquet Facility, 5122 Clinton Street, Batavia. Registration begins at 11:30 am, and Buffet Lunch begins promptly at Noon, cost is $25 per person.
The Agenda for the Meeting will be a review of 2023, a look ahead into 2024 & Election of 2024 Chamber Board Members. To register directly online visit the Chamber’s Website www.geneseeny.com or call Kelly B. at 585-343-7440, ext. 1026. Deadline for registration is Nov. 10.
Tompkins Financial Corporation ("Tompkins" or the "Company") reported a net loss of $33.4 million for the third quarter of 2023. The quarterly results were negatively impacted by the sale of $429.6 million of available-for-sale debt securities, which resulted in an after-tax loss on the sale of securities of $47.5 million. Though this sale resulted in an operating loss in the third quarter of 2023, the transaction is expected to favorably impact securities revenue in future periods as the securities sold had an average yield of 0.93%, while the proceeds of the sale were largely reinvested into securities with an estimated yield of approximately 5.12%. The weighted average life of the securities purchased and sold was approximately 4.3 years.
Tompkins President and CEO, Stephen Romaine, commented, "During the quarter we elected to proactively reposition the balance sheet which will improve securities revenue and we expect that the improved revenue will exceed the value of the loss recognized in the third quarter through time. We estimate securities revenue to improve by approximately $15.4 million over the next twelve months.
While the economic environment remains challenging for the banking industry, our capital and liquidity levels remain healthy and well positioned to meet the needs of our customers. We continued to see favorable growth trends, with annualized loan growth of 6.0% from the second to third quarter of this year and increased deposit balances over the same periods. We are also pleased to announce our cash dividend, which is reflective of our healthy capital position."
Diluted earnings per share for the third quarter of 2023 were a loss of $2.35, which reflects the impact of the after-tax losses of $3.34 per diluted share related to the sale of available-for-sale debt securities as noted above. Diluted earnings per share for the third quarter of 2022 were $1.48.
For the year-to-date period ended September 30, 2023, net income was a loss of $5.5 million, or a loss of $0.39 per diluted share. Year-to-date results were also negatively impacted by after-tax losses on the sale of securities totaling $52.9 million, or $3.69 loss per diluted share. For the same year-to-date period in 2022, net income was $65.5 million, or $4.53 per diluted share.
SELECTED HIGHLIGHTS FOR THE PERIOD:
Total loans at September 30, 2023 were up $82.5 million, or 1.5% (6.1% on an annualized basis) compared to the immediate prior quarter, and up $226.4 million, or 4.3%, from September 30, 2022. Total deposits at September 30, 2023 were $6.6 billion, up $168.8 million, or 2.5% (10.4% on an annualized basis) from June 30, 2023, and down $313.3 million, or 4.5%, from September 30, 2022. Loan to deposit ratio was stable at 82.1%, compared to 82.9% for the immediate prior quarter. Regulatory Tier 1 capital to average assets was 9.01% at September 30, 2023, compared to 9.57% at June 30, 2023 and 9.14% at September 30, 2022. Total nonperforming assets at September 30, 2023 represented 0.41% of total assets, which was flat compared to the immediate prior quarter and down from 0.45% at September 30, 2022.
NET INTEREST INCOME
Net interest income was $51.0 million for the third quarter of 2023, down from $51.9 million for the second quarter of 2023 and $58.1 million for the third quarter of 2022. Net interest margin was 2.75% for the third quarter of 2023, compared to 2.83% reported for the second quarter of 2023 and 3.04% reported for the third quarter of 2022. The decrease in net interest income and net interest margin during the third quarter, when compared to the second quarter of this year and the same quarter last year, was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment.
For the year-to-date period ended September 30, 2023, net interest income was $157.2 million, down $15.8 million, or 9.2%, when compared to the same period in 2022.
Average loans for the quarter ended September 30, 2023 were up $80.5 million, or 1.5%, from the second quarter of 2023, and were up $200.0 million, or 3.9%, compared to the quarter ended September 30, 2022. The increase in average loans over both prior periods was mainly in the commercial real estate portfolio. The average yield on interest-earning assets for the quarter ended September 30, 2023 was 4.06%, which was up from 3.91% for the quarter ended June 30, 2023, and up from 3.32% for the quarter ended September 30, 2022.
Average total deposits for the third quarter of 2023 were down $20.0 million, or 0.3%, compared to the second quarter of 2023, and down $394.4 million, or 5.8%, compared to the same period in 2022. The decrease as compared to the prior year was largely driven by a decline in stimulus funding and a tightening monetary policy that has led to a declining trend in bank deposits on a national level, as reported by the Federal Reserve. The cost of interest-bearing deposits increased to 1.74% for the third quarter of 2023, compared to 1.41% for the second quarter of 2023, and 0.36% for the third quarter of 2022. The cost of interest-bearing deposits for the third quarter of 2023 increased 33 basis points from June 30, 2023. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2023 was 31.0% compared to 31.1% for the second quarter of 2023. The average cost of interest-bearing liabilities for the third quarter of 2023 of 1.98%, represents an increase of 34 basis points over the second quarter of 2023, and an increase of 153 basis points over the same period in 2022.
NONINTEREST INCOME
Noninterest income was a loss of $41.6 million for the third quarter of 2023, which represents a decrease in noninterest income of $62.3 million compared to the third quarter of 2022. Year-to-date noninterest income was a loss of $8.6 million, which represents a decrease in noninterest income of $68.2 million compared to the same nine month period in 2022. The decrease in noninterest income in the third quarter of 2023 was largely due to the above noted sale of available-for-sale debt securities, which resulted in the recognition of a pre-tax loss of $62.9 million. Fee-based revenues, including insurance commissions and fees, wealth management fees, service charges on deposit accounts and card services income, for the third quarter of 2023 were collectively up $543,000, or 2.7%, over the same period in 2022.
NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the third quarter of 2023, which was up $264,000, or 0.5%, over the third quarter of 2022. For the year-to-date period, noninterest expense of $152.0 million was up $6.4 million, or 4.4%, from the same period in 2022. The increase in noninterest expense in the nine months ended September 30, 2023 over the same period in 2022 was mainly in other operating expenses which were up $4.1 million and higher personnel-related expenses, which were up $2.7 million. Contributing to the growth in other expenses for the nine months ended September 30, 2023, compared to the same period in 2022 were the following: expenses related to the Company’s retirement plans, up $1.3 million; professional fees, up $699,000, New York State minimum tax, up $623,000; and FDIC insurance, up $777,000. The increase in personnel-related expenses was mainly in health insurance, which is up $1.5 million.
INCOME TAX EXPENSE
The provision for income taxes was a credit of $8.3 million for an effective rate of 20.0% for the third quarter of 2023, compared to tax expense of $6.8 million and an effective rate of 24.1% for the same quarter in 2022. For the first nine months of 2023, the provision for income taxes was a credit of $619,000 for an effective rate of 10.3% compared to tax expense of $20.1 million and an effective rate of 23.4% for the same period in 2022. The decrease in income tax expense between comparable periods reflects the decrease in pre-tax income, due primarily to the realized losses on the sale of certain available-for-sale securities and the anticipated retention of certain New York State tax benefits.
ASSET QUALITY
The allowance for credit losses represented 0.91% of total loans and leases at September 30, 2023, flat as compared to June 30, 2023, and up from 0.86% at September 30, 2022. The ratio of the allowance to total nonperforming loans and leases was 156.96% at September 30, 2023, compared to 154.76% at June 30, 2023 and 128.27% at September 30, 2022.
Provision for credit losses for the third quarter of 2023 was $1.2 million compared to $1.1 million for the same period in 2022. Provision for credit losses for the nine months ended September 30, 2023 was $2.6 million, compared to $1.4 million for the nine months ended September 30, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by economic forecasts, loan growth, and changes in asset quality. Net charge-offs for the quarter ended September 30, 2023 were $177,000 compared to net charge-offs of $122,000 reported for the same period in 2022.
Nonperforming assets represented 0.41% of total assets at September 30, 2023, down from 0.43% at December 31, 2022 and 0.45% reported at September 30, 2022. At September 30, 2023, nonperforming loans and leases totaled $31.4 million, compared to $32.8 million at December 31, 2022 and $34.9 million at September 30, 2022. The increase in loans past due 30-89 days at quarter-end September 30, 2023, was mainly due to the inclusion of two commercial real estate loans to one relationship totaling $18.6 million. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of September 30, 2023.
Special Mention and Substandard loans and leases totaled $122.9 million at September 30, 2023, reflecting an increase from the $98.3 million reported at December 31, 2022, and $106.7 million at September 30, 2022. The increase as compared to year-end in Special Mention and Substandard was mainly a result of the downgrade of one commercial real estate loan added to Special Mention during the second quarter of 2023 and the downgrade of one commercial real estate loan previously reported as Special Mention in the second quarter of 2023.
CAPITAL POSITION
Capital ratios at September 30, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.46% at September 30, 2023, compared to 14.42% at December 31, 2022 and 14.26% at September 30, 2022. The ratio of Tier 1 capital to average assets was 9.01% at September 30, 2023, compared to 9.34% at December 31, 2022 and 9.14% at September 30, 2022.
During the third quarter of 2023, the Company repurchased 41,781 common shares at an aggregate cost of $2.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021.
LIQUIDITY POSITION
The Company's liquidity position at September 30, 2023 was stable and consistent with the immediately prior quarter. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of $1.2 billion, or 15.1% of total assets at September 30, 2023. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At September 30, 2023 the Company had an available borrowing capacity at the FHLB of $969.4 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At September 30, 2023 the available borrowing capacity with the Federal Reserve Bank was $91.8 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at September 30, 2023, the Company maintained $411.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.
