Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.18 for the first quarter of 2024, up 12.4% compared to the immediate prior quarter, and down 12.6% from diluted earnings per share of $1.35 reported in the first quarter of 2023.

Net income for the first quarter of 2024 was $16.9 million, up 12.5% compared to the immediate prior quarter, and down 13.0% from the $19.4 million reported for the same period in 2023.  The decrease in net income from the first quarter of 2023 was mainly a result of lower net interest income, driven by increased funding costs and increased provision for credit loss expense.  Decreases in net income were partially offset by growth in fee-based revenues and lower operating expenses year-over-year.  

Tompkins President and CEO, Stephen Romaine, commented, "In the first quarter we saw positive earnings momentum and continue to be well positioned with strong capital and liquidity.  For the quarter we saw continued loan growth with a year-over-year increase of 7.0%, moderation in deposit cost increases, and 8.5% growth in noninterest income.  We remain focused on noninterest expenses, which were lower in the first quarter compared to prior year.  As the industry challenges continue in light of the current economic environment, we plan to leverage the strength of our balance sheet and drive growth through quality customer relationships."

SELECTED HIGHLIGHTS FOR THE PERIOD:

• Net interest margin for the first quarter of 2024 was 2.73%, compared to 2.82% for the fourth quarter of 2023, and 2.99% for the first quarter of 2023.
• Average cost of deposits were up 11 basis points compared to the fourth quarter 2023, down from a 23 basis point increase from the third quarter to the fourth quarter 2023. 
• Fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the first quarter of 2024 were up $3.1 million or 18.4% compared to the fourth quarter of 2023, and $1.5 million or 8.1% over the first quarter of 2023.
• Total operating expenses of $49.9 million for the first quarter of 2024 were down $1.4 million or 2.8% compared to the compared to the fourth quarter of 2023, and $301,000 or 0.6% from the first quarter of 2023.
• Total loans at March 31 were up $34.6 million, or 0.6% (2.5% on an annualized basis), compared to the immediate prior quarter, and up $366.9 million, or 7.0%, from March 31, 2023.
• Total deposits at March 31 were $6.4 billion, up $49.8 million, or 0.8% (3.1% on an annualized basis), from December 31, 2023, and down $59.4 million, or 0.9%, from March 31, 2023. 
• Loan to deposit ratio was 87.5%, compared to 87.6% for the immediate prior quarter.
• Regulatory Tier 1 capital to average assets was 9.08% at March 31 unchanged from December 31, 2023, and down compared to 9.63% at March 31, 2023.

NET INTEREST INCOME

Net interest income was $50.7 million for the first quarter of 2024, down from $52.4 million for the fourth quarter of 2023, and $54.2 million for the first quarter of 2023. Net interest income for the quarter ended March 31 was impacted by increases in interest expense, which totaled $32.5 million for the first quarter of 2024 compared to $15.0 million for the same period in 2023, partially offset by increased interest and dividend income, which increased by $13.9 million when compared to the first quarter of 2023.  

Net interest margin was 2.73% for the first quarter of 2024, compared to 2.82% reported for the fourth quarter of 2023, and 2.99% for the first quarter of 2023. The decrease in margin from the fourth quarter of 2023 was due to higher funding costs, driven by market rates and higher borrowings due to seasonal deposit changes outpacing increases on interest earning asset yields and growth in average loan balances.

Average loans for the quarter ended March 31 were up $134.9 million, or 2.5%, from the fourth quarter of 2023, and were up $370.3 million, or 7.1%, compared to the quarter ended March 31, 2023. 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 March 31 was 4.47%, which was up from 4.34% for the quarter ended December 31, 2023, and up from 3.81% for the quarter ended March 31, 2023.

Average total deposits for the first quarter of 2024 were down $123.9 million, or 1.9%, compared to the fourth quarter of 2023, while period end balances were up $49.8 million or 0.8% compared to the fourth quarter of 2023 driven by seasonal deposit trends.  Average deposits for the quarter were down $206.8 million, or 3.1%, compared to the same period in 2023. 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 of 2.17% for the first quarter of 2024, was up 13 basis points from 2.04% for the fourth quarter of 2023, and up 107 basis points from 1.10% for the first quarter of 2023.  The ratio of average noninterest bearing deposits to average total deposits for the first quarter of 2024 was 28.8% compared to 29.6% for the fourth quarter of 2023, and 31.4% for the quarter ended March 31, 2023.  The average cost of interest-bearing liabilities for the first quarter of 2024 of 2.51% represents an increase of 26 basis points over the fourth quarter of 2023, and an increase of 125 basis points over the same period in 2023.

NONINTEREST INCOME

Noninterest income of $22.1 million for the first quarter of 2024 was up $1.7 million or 8.5% compared to the same period in 2023.  The increase was mainly due to increases in fee-based revenues which included insurance commissions and fees, up $750,000, wealth management fees, up $428,000 and card services income, up $257,000.  Noninterest income represented 30.4% of total revenue at March 31, compared to 26.5% at December 31, 2023, and 27.3% at March 31, 2023.

NONINTEREST EXPENSE

Noninterest expense was $49.9 million for the first quarter of 2024, which was down $301,000 or 0.6% compared to the first quarter of 2023.  The decrease was mainly driven by lower other expenses (legal fees, marketing expense, and travel and meeting expense) and lower salaries, wages and other employee benefits in the first quarter of 2024 compared to the same period in 2023.

INCOME TAX EXPENSE

The provision for income tax expense of $5.2 million for an effective rate of 23.5% for the first quarter of 2024, compared to tax expense of $3.1 million and an effective rate of 17.2% for the fourth quarter of 2023, and $5.9 million and an effective rate of 23.3% for the same quarter in 2023.

ASSET QUALITY

The allowance for credit losses represented 0.92% of total loans and leases at March 31, in line with December 31, 2023, and up from 0.87% at March 31, 2023. The ratio of the allowance to total nonperforming loans and leases was 82.47% at March 31, compared to 82.84% at December 31, 2023 and 162.11% at March 31, 2023.  The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below.

Provision for credit losses for the first quarter of 2024 was $854,000 compared to a credit of $825,000 for the same period in 2023. The increase in provision expense for the first quarter of 2024 was mainly driven by increased off-balance sheet exposures related to growth in commercial loan pipeline, loan growth, and changes in asset quality.  The provision credit in the first quarter of 2023 was largely driven by significant net recoveries.  Net charge-offs for the first quarter of 2024 were $228,000 compared to net recoveries of $1.3 million reported for the same period in 2023.

Nonperforming assets represented 0.81% of total assets at March 31, up from 0.80% reported at December 31, 2023 and 0.37% at March 31, 2023. At March 31 nonperforming loans and leases totaled $62.7 million, compared to $62.3 million at December 31, 2023 and $28.4 million at March 31, 2023. The increase in nonperforming loans at March 31 compared to the same period in 2023, was mainly due to the addition of one relationship with two commercial real estate properties totaling approximately $33.8 million included in the office space and mixed use properties portion of the commercial real estate portfolio during the fourth quarter of 2023. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of March 31.

Special Mention and Substandard loans and leases totaled $118.7 million at March 31, compared to $123.1 million reported at December 31, 2023, and $85.6 million reported at March 31, 2023.

CAPITAL POSITION

Capital ratios at March 31 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.43% at March 31, compared to 13.36% at December 31, 2023, and 14.62% at March 31, 2023. The ratio of Tier 1 capital to average assets was 9.08% at March 31, unchanged from the most recent prior quarter, and down compared to 9.63% at March 31, 2023.

LIQUIDITY POSITION

The Company's liquidity position at March 31 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 $1.5 billion, or 19.3% of total assets at March 31. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At March 31 the Company had an available borrowing capacity at the FHLB of $773.4 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window.  At March 31 the available borrowing capacity with the Federal Reserve Bank was $138 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at March 31, the Company maintained $579.6 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity. 

“The Genesee County Economic Development Center (GCEDC) is pleased to announce that we are working closely with the towns of Oakfield and Alabama, along with the village of Oakfield and regulatory agencies, to construct a force main to accommodate the current projects at STAMP and a potential future project.

“This project would result in capital improvements to the Village of Oakfield wastewater treatment plant, including the installation of equipment to reduce the current phosphorus discharge into Oak Orchard Creek.

“As the Oakfield line cannot fully replace the Orleans County line, we will continue to pursue the force main to Oak Orchard Creek in the town of Shelby through a different construction method, and we look forward to working with the United States Department of Fish and Wildlife and the Tonawanda Seneca Nation as this process moves forward. The Oakfield plan alleviates the timing pressures for the build-out of the force main to Oak Orchard Creek.

“As a result of being recently notified by the USFWS that our permit for horizontal directional drilling for the force main to Oak Orchard Creek in the town of Shelby has been terminated, we are in the process of submitting a new permit application to propose an open cut construction method which will avoid the types of incidents that resulted from the former method.

“The determination by USFWS is unrelated to claims made by Orleans County regarding the force main to Oak Orchard Creek.  Those claims brought by Orleans County were recently dismissed by the State Supreme Court following an Article 78 hearing.”

Mark E. Woodward, CFP®, CLTC®, APMA TM, a Private Wealth Advisor with Fieldstone Private Wealth, a private wealth advisory practice of Ameriprise Financial Services, LLC. in Batavia, has qualified for the company’s Circle of Success annual recognition program and will be honored for this achievement in 2024.

To earn this achievement, Woodward established himself as one of the company’s top advisors. Only a select number of high-performing advisors earn this distinction.

He has 30 years of experience with Ameriprise Financial. As a private wealth advisory practice, Fieldstone Private Wealth provides financial advice that is anchored in a solid understanding of client needs and expectations and provided in one-on-one relationships with their clients. 

For more information, please contact Mark Woodward at 585-344-1262, visit the Ameriprise office at 219 East Main Street, Batavia, or visit their website at www.fieldstoneprivatewealth.com.

Even as he heads off into retirement after 40 years in business, Bob Chiarmonte wants to ensure that many of the 1,500 backstock of eyeglass frames he has go to his former customers and other local residents before sending them to auction.

Chiarmonte is offering the remainder of his inventory of eyeglass frames for $10 to $25 per frame, which can be filled with prescription lenses by any optometrist shop. That's a good bit less costly than the typical retail price of $100 to $150, Chiarmonte said.

Chiarmonte is keeping the shop open into sometime next week in order to sell as many frames as possible. He's also selling all of his store fixtures -- and if there's an  optometrist looking for examination gear, he's got that, too.

Classic Optical is located at 44 Batavia City Centre, Batavia. 

Previously: Optician sets his sights on family, travel in retirement after nearly 40 years

Photos by Howard Owens

UConnectCare (formerly Genesee/Orleans Council on Alcoholism and Substance Abuse) has hired Jay Baran as the coordinator of the GOW Opioid Task Force.

Baran, 26, is responsible for overseeing the three-county – Genesee, Orleans and Wyoming – volunteer organization that is dedicated to saving lives by reducing overdoses and overdose deaths.

A graduate of St. Mary’s of Lancaster, Baran earned a bachelor’s degree in Public Health with a minor in Biology from SUNY Brockport in 2022. She replaces Christen Foley, who accepted the position of project director of the Western New York Prevention Resource Center, a program of UConnectCare.

In her role as coordinator, Baran will provide assistance to the task force’s six work groups – steering committee, access to care, data, community education, law enforcement, and family, loved ones, and allies. She also will be setting up quarterly meetings and events, with Overdose Awareness Day on August 28 next on the schedule.

“I have a passion for public health and am grateful to be able to serve in that capacity (with UConnectCare),” she said. “The GOW Opioid Task Force has made quite an impact over the past several years and I am looking forward to the initiatives that lie ahead.”

Baran served as a camp counselor for Just for Kids in Orchard Park before taking a position with Citibank in Buffalo for a year. Last year, she managed the social media account and coordinated a team of volunteers at Uplift Irondequoit, a coalition that supports programs and activities related to prevention, education, and reduction of youth substance use.

For more information about the GOW Opioid Task Force, contact Baran a jbaran@uconnectcare.org or at 585-815-1863.

It was just about a year ago that Tom Riggio, partner with Paul Guglielmo of the booming Craft Cannery business venture in Bergen, spoke about the future expansion of the site on Appletree Avenue and plans to hire more employees along with the physical growth.

Food and manufacturing officials brought the shovels out Wednesday for the ceremonial groundbreaking and celebration of the $1.5 million, 6,300 square-foot warehouse that will allow for a second kitchen and bottling line facility and in turn take on more clients, churn out more products and create more jobs.

Fieldstone Private Wealth, A private wealth advisory practice of Ameriprise Financial Services, LLC, in Batavia, has earned the Ameriprise Client Experience Award for 2023.

Fieldstone Private Wealth was honored with this award because its ability to consistently deliver personalized, goal-based advice and exceptional client service. Award recipients earned an overall client satisfaction rating equal to or greater than 4.9 out of 5.0 and maintained stellar business results. 

The award represents an elite group of Ameriprise advisors recognized as leaders for their commitment to making a difference in the lives of their clients.

As a private wealth advisory practice, Fieldstone Private Wealth provides financial advice that is anchored in a solid understanding of client needs and expectations and is delivered in one-on-one relationships with their clients. 

For more information, please contact Mark Woodward at 585-344-1262 or visit the Ameriprise office at 219 East Main Street, Batavia.

Expanding its advisory team, Tompkins Financial Advisors (Tompkins) in Western New York, announces the hire of Conner Simonetti as a wealth advisor. In his new role, Simonetti will be responsible for identifying and developing target segments while collaborating directly with clients, as well as sharing and implementing Tompkins’ comprehensive services to help clients build wealth and enjoy peace of mind.

“Conner has a proven track record of helping clients achieve their financial goals,” said James Sperry, senior vice president and managing director for Tompkins’ Western New York region. “Whether it be through personalized strategies or comprehensive wealth management solutions, he is committed to providing exceptional service and building long-lasting relationships with clients – things we deeply value at Tompkins. He will be an invaluable asset to our team.”

Simonetti comes to Tompkins with over 5 years of financial management experience. His experience is highlighted throughout his time as an operations and advisor for Worth Considering, Inc., and later, a portfolio manager with Brighton Securities Capital Management. In addition to his bachelor's degree in finance from Kent State University, Simonetti holds a Registered Investment Advisor license (Series 65) and is currently working toward his designation as a Certified Investment Management Analyst.

Before entering the financial industry in 2019, Simonetti played professional baseball with the Washington Nationals organization. Bringing that background full circle, he currently coaches baseball and softball students in the Monroe County, New York area.

The Department of Energy has awarded grants totaling $75.7 million to Plug Power, the Latham-based green hydrogen power company currently constructing a production facility in WNY STAMP in the town of Alabama.

The funds are part of a $1 trillion infrastructure bill approved by Congress and President Joe Biden in 2021 and are intended to help with research and development of hydrogen fuel production.

The company has also applied for a $1.6 billion low-interest loan from the DOE. That loan is apparently still under consideration.

Plug Power is betting that hydrogen power will become a big winner in the race to develop clean, renewable energy to sustain the economy and protect the environment in the coming decades. The Latham-based company specializes in "green hydrogen," which is the generation of hydrogen fuel using renewable energy sources such as solar and hydropower. An apparent attraction of WNY STAMP is the ability at that location to tap into hydropower generated by Niagara Falls.

Plug Power aims to provide customers with fuel cells, electrolyzers (splitting water into hydrogen and oxygen), to liquid hydrogen fuel. Plug Power wants to provide distribution, delivery, and services and foresees a future for hydrogen that includes uses such as long-haul trucking.

Plug Power's executives have set ambitious goals -- producing 2,000 tons of hydrogen daily by 2030. At that rate, the company hopes to generate $20 billion in annual revenue at that point with a profit margin of at least 30 percent.  

“The Bipartisan Infrastructure & Jobs Law is helping supercharge Upstate NY’s clean hydrogen sector. With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good-paying clean energy jobs and boosting the fight against climate change,” said, Sen. Charles Schumer. “Clean green hydrogen is one of the most exciting forms of new energy production, and with the major federal investments being made thanks to the Bipartisan Infrastructure Law and Inflation Reduction Act I championed, Upstate NY is poised to lead the way in powering America’s clean energy future.”

The grants are divided into two components.

The company will receive $45.7 million for the following project description:

The goal of this project is to establish and implement automation capabilities within our high-performance PEM stack manufacturing facility in Rochester, New York capable of producing 5,000 1 MW stacks per year.

This project will scale up manufacturing of proton exchange membrane electrolyzer stacks to the multi-GW scale, driving down costs to meet DOE targets. This project will automate membrane electrode assembly fabrication and stack assembly and enable automated inspection with machine learning to accelerate factory acceptance testing.

The project description for the second grant, $30 million:

This project will demonstrate a production pathway to meet a projected 2030 system cost of $80/kW for 100,000 heavy-duty fuel cell systems per year and automate the manufacturing of high-performance, low-defect membrane electrode assemblies in collaboration with the National Renewable Energy Lab.

The project will demonstrate an innovative expansion of their current manufacturing line.

“We are very appreciative and excited about the DOE's clean energy manufacturing initiatives and their profound impact on propelling Plug's industry-leading manufacturing capabilities in fuel cell and electrolyzer MEAs (Membrane Electrode Assemblies) and stacks," said Andy Marsh, CEO of Plug. “Congress enacted these policies to advance hydrogen and fuel cells as vital components of the United States’ climate strategy.  This funding will advance Plug’s fuel cell and electrolyzer manufacturing capabilities, create good paying jobs in New York, and fortify the region’s leadership in the national clean energy transition.”

The company selected WNY STAMP for the construction of a liquid hydrogen plant in February 2021.  The plant will cost more than $290 million to complete. 

Plug Power expects to generate 74 tons per day of liquid hydrogen at its WNY STAMP plant. The company recently opened two new production facilities in Georgia and Tennessee, and the WNY STAMP plant is expected to open in early 2025.

Empire State Development is scheduled to pay up to $2 million in Excelsior Tax Credits in exchange for the creation of 68 jobs at the plant, or about $2,941 per job per year over 10 years. Plug Power is not eligible to receive the tax credits until the jobs are filled. The average starting salary is expected to be approximately $70,000 plus benefits.

As part of the project, Plug Power agreed to invest $55 million in a 450-megawatt electrical substation that will make electricity available to other WNY STAMP tenants.

The company received $118.2 million in sales and property tax exemptions from the Genesee County Economic Development Center. Over the 20-year life of the property tax extensions, Plug Power will make payments in lieu of taxes totaling $2.3 million annually, which will be shared by Genesee County, the Town of Alabama, and the Oakfield-Alabama School District.  Each jurisdiction will also receive an increasing amount of property tax payments each year over the life of the agreement.

In accordance with Security and Exchange Commission Rules, Plug Power disclosed in November that a shortage of cash threatened its ability to remain a "going concern" within the following 12 months.  It suggested it could raise more cash by selling stock and that the company expected to receive a sizable loan from the Department of Energy.

Since then, Plug Power authorized B. Riley Securities to offer additional public shares of the company for sale at market rate with the goal of raising an additional $1 billion in capital.  That agreement was announced in January.  Since then, it has reportedly sold 77,417,069 new shares of stock, raising more than $300 million in cash. The company is continuing to sell new shares with a goal of selling another $700 million in 2024.

On Monday morning, the company announced its fourth quarter 2023 results and that it has removed its "going concern" guidance, stating, "The Company has determined it has sufficient cash on hand coupled with available liquidity to fund its ongoing operations for the foreseeable future."

It also announced record revenue of $891 million for the year, a 27% increase over the prior year.

However, the company continues to lose money and has never turned a profit, which, 25 years into its existence, continues to spook investors. After the Q4 report was released on Monday, the price per share of the company's stock dropped 17 cents and closed at $3.37. It hasn't traded above $5 since November. In early 2021, it was trading for more than $60 a share.

For previous Plug Power coverage, click here.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors will consider a final resolution for HP Hood’s $120 million proposed expansion project at its meeting on Thursday, March 7.

Announced by New York State Governor Kathy Hochul last fall, HP Hood plans to expand its footprint at the Genesee Valley Agri-Business Park. The project includes the construction of a 32,500 square foot expansion to accommodate its automatic storage and retrieval system (ASRS) refrigerated warehouse.  The project will also include new batching and processing systems and other upgrades, allowing the company to increase capacity and begin a new production line. 

“The agricultural sector is a backbone of our regional and state economy, as evidenced by the significant investment and jobs provided by companies such as HP Hood, Upstate Niagara Cooperative, and O-AT-KA Milk Products, among many others,” said GCEDC President and CEO Steve Hyde. The sector's growth here is the result of the Genesee Agri-Business Park, which was constructed in 2011 and is now almost at full build-out.”

The expansion would create 48 new jobs while retaining 455 full-time positions as part of the company’s 1,200 employees throughout New York State. Investments at the Genesee Valley Agri-Business Park have resulted in a cluster with over 1.2 million sq. ft. of food and beverage facilities employing over 1,000 professionals in the food processing industry, the leading employment sector in Genesee County and GLOW region.