Tompkins Community Bank

Tompkins Financial Advisors has expanded its capabilities for specialized portfolio management and investment strategies in Western New York with the hiring of Matt Kelley as the company’s Portfolio Manager.

Kelley will be a key member of the Tompkins Financial Advisors Investment Committee and is the first Portfolio Manager to join the company. He will be responsible for developing and implementing investment strategies for individuals and institutional investors. Kelley will also serve as an investment specialist supporting the Tompkins Financial Advisors business development team.

“Our clients will benefit from Matt’s experience as a research analyst, and his ability to develop customized investment strategies,” said Jim Sperry, Tompkins Financial Advisors Managing Director for Western New York. “Like every member of our team, Matt will be focused on understanding our clients’ complete financial picture so we can provide the wealth management strategies that make a meaningful difference in their lives.”

Kelley has more than nine years of client management and portfolio management experience. He holds the Chartered Financial Analyst (CFA) designation, and FINRA Series 7 and 66 registrations. Kelley most recently served as Assistant Vice President of Graystone Consulting, a unit of Morgan Stanley. Within that role, he directed research and managed a globally diversified portfolio of more than $1 billion for high net worth families and institutions.

Kelley earned his Bachelor’s degree in Economics from the University of Rochester, and his Master’s degree in Finance from the Simon Graduate School of Business at the University of Rochester, where he graduated with Beta Gamma Sigma honors. Beta Gamma Sigma is the international honor society serving business programs accredited by the Association to Advance Collegiate Schools of Business. Membership in Beta Gamma Sigma is the highest recognition a business student anywhere in the world can receive in a business program accredited by AACSB International.

Kelley and his family live in Victor, N.Y.

Press release:

Tompkins Financial Corporation reported diluted earnings per share of $1.14 for the third quarter of 2017, which represents an increase of 14.0% compared to the $1.00 reported in the third quarter of 2016. Net income for the third quarter of 2017 was $17.4 million, up 14.9% compared to the $15.1 million reported in the third quarter of 2016.

Year-to-date diluted earnings per share of $3.27 for the first nine months of 2017 represents an increase of 12.0% over the same period in 2016. Year-to-date net income was $50.0 million through the first nine months of 2017, an increase of 13.2% over the same period in 2016.

President and CEO, Stephen S. Romaine said “We are extremely pleased with our earnings performance as the reported results reflect the best third quarter and best year-to-date performance through the first nine months of any year in our Company’s history. A key growth driver for the quarter and year-to-date periods has been the improvement in net interest income, which has benefited from solid growth trends in loans and deposits.”

SELECTED HIGHLIGHTS FOR THIRD QUARTER AND YEAR TO DATE:

• §  Best earnings performance for the first nine months of any year in our Company’s history. Also, the best third quarter earnings performance in our Company’s history.

• §  Net interest income for the quarter was up 12.5% compared to the third quarter of 2016, and up year-to-date 11.2% compared to the same period in 2016.

• §  Net interest margin of 3.40% for the quarter and 3.41% for the year-to-date, are both improved from the same periods in 2016.

For more information contact:

Stephen S. Romaine, President & CEO Francis M. Fetsko, Executive VP, CFO & COO Tompkins Financial Corporation (888)503-5753

• §  Total loans of $4.5 billion were up 9.8% over the same period in 2016; and are up 5.5% over December 31, 2016.

• §  Total deposits of $4.9 billion reflect an increase of 5.4% over the same period last year, and are up 6.9% from December 31, 2016.

• §  Third quarter return on average equity was 11.77% compared to 10.81% for the same quarter last year.

  NET INTEREST INCOME

  Net interest income of $51.0 million for the third quarter of 2017 increased by $5.7 million, or 12.5% compared to the same period in 2016. For the year-to-date period, net interest income was $149.3 million, up $15.1 million, or 11.2% from the same nine-month period in 2016.

  Growth in net interest income for the third quarter of 2017 over the third quarter of 2016 was largely driven by $430.1 million of growth in average loans over the third quarter of 2016, an increase of 10.7%. Average deposits increased $249.1 million, or 5.5% compared to the same period in 2016. Included in the increase in average deposits was a $165.7 million or 14.4% increase in noninterest bearing deposits. For the third quarter of 2017, net interest margin measured 3.40%, compared to 3.45% for the quarter ended June 30, 2017, and 3.31% in the third quarter of 2016.

  NONINTEREST INCOME

  Noninterest income represented 25.2% of total revenues in the third quarter of 2017, compared to 28.3% in the same period in 2016, and 25.8% for the most recent prior quarter. Noninterest income of $17.2 million was down $703,000, or 3.9% compared to the same period last year. The third quarter of 2017 included a loss on sales of available for sale securities of approximately $423,000 compared to a gain of $455,000 reported in the third quarter of 2016. Sales of available-for-sale securities are generally the result of general investment security portfolio maintenance and interest rate risk management.

  Year-to-date noninterest income of $51.9 million was in line with the previous year noninterest income of $52.5 million.

  NONINTEREST EXPENSE

  Noninterest expense was $41.9 million for the third quarter of 2017, up $1.6 million, or 3.9%, over the third quarter of 2016. For the year-to-date period, noninterest expense was $124.8 million, up $5.6 million, or 4.7%, from the same period in 2016. The increase in noninterest expense for both the third quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $345,000 of expense related to OREO properties held by the bank.

ASSET QUALITY

Asset quality trends remained strong in the third quarter of 2017. Nonperforming assets represented 0.37% of total assets at September 30, 2017, compared to 0.36% at December 31, 2016, and 0.32% at September 30, 2016. Though credit quality metrics showed some modest deterioration during the quarter, overall credit quality remains strong and compares favorably to our peers. Nonperforming asset levels as a percentage of total assets of 0.37% compares favorably to the most recent Federal Reserve Board Peer Group Average1 of 0.51%.

Provision for loan and lease losses was $402,000 for the third quarter of 2017, down $380,000 compared to the third quarter of 2016. Net recoveries for the third quarter of 2017 were $479,000 compared to net recoveries of $205,000 reported in the third quarter of 2016.

The Company’s allowance for originated loan and lease losses totaled $37.9 million at September 30, 2017, and represented 0.91% of total originated loans and leases at September 30, 2017, relatively unchanged from the most recent prior quarter and the third quarter of 2016. The total allowance represented 170.12% of total nonperforming loans and leases at September 30, 2017, compared to 164.98% at December 31, 2016, and 186.45% at September 30, 2016.

The level of Special Mention originated loans increased during the quarter to $50.4 million, up from $27.2 million a year ago, and up from $38.5 million at June 30, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower average milk prices in 2016, which had an unfavorable impact on operations of our agricultural customers. Milk prices have rebounded in 2017. As of September 30, 2017, payments on all loans in our agricultural portfolio were current. Of the $50.4 million of loans currently listed as Special Mention, 94.3% of the dollar amount outstanding was current on their payments as of September 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.50% at September 30, 2017, compared to 8.41% reported at December 31, 2016. Total capital to risk-weighted assets at September 30, 2017 was 12.52%, compared to 12.22% at December 31, 2016. Both ratios are down from the same period last year, in large part due to the redemption of $20.5 million of 7% fixed rate Trust Preferred securities in January 2017. 

Press release:

Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.47 per share, payable on November 15, 2017, to common shareholders of record on November 7, 2017. The current dividend represents a 4.4% increase over the $0.45 cash dividend paid in the third quarter of 2017.

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins

Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com. 

Press release:

Tompkins Financial Corporation (NYSEMKT:TMP) reported net income of $16.9 million for the second quarter of 2017, an increase of 14.1% from the $14.8 million reported for the same period in 2016. Year to date net income was $32.6 million, an increase of $3.6 million, up 12.2% over the same period in 2016.

Diluted earnings per share were $1.11 for the second quarter of 2017, up 13.3% over the second quarter of 2016. For the year-to-date period ended June 30, 2017, diluted earnings per share were $2.13, up 11.5% over the same period in 2016.

President and CEO, Stephen S. Romaine said, “It is especially rewarding to show strong performance through the first half of 2017, while our team was also focused on a conversion of our core banking system, which was successfully completed in May of this year. Improved net interest income, which was supported by solid loan growth over the prior year, has been the primary driver of improved earnings performance in 2017.”

SELECTED HIGHLIGHTS FOR SECOND QUARTER AND YEAR TO DATE:

• ●  Diluted earnings per share of $1.11 for the second quarter represented a 13.3% increase over the same period last year, while year-to-date diluted earnings per share of $2.13 reflect the best earnings through the first six months of any year in our Company’s history.

• ●  Quarterly returns on average assets and average equity of 1.07% and 11.85%, respectively, are at their highest levels since June 2015

• ●  Net interest margin improved for the second consecutive quarter and is at its highest level since March 2015.

• ●  Total loans of $4.4 billion were up 11.1% over the same period in 2016; and are up 3.8% over December 31, 2016.

• ●  Total deposits of $4.8 billion reflect an increase of 6.3% over the same period last year, and are up 2.7% from December 31, 2016.

  NET INTEREST INCOME

  Net interest income of $50.3 million for the second quarter of 2017 increased by $5.4 million, or 12.0% compared to the same period in 2016. For the year-to-date period, net interest income was $98.3 million, up $9.4 million, or 10.6% from the same six-month period in 2016.

  Net interest income benefited from growth in average loans and deposits. Average loans were up $467.1 million, or 12.2% in the first six months of 2017, versus the same period in 2016. Average deposits were up $260.3 million, or 5.8% in the first six months of 2017, versus the same period in 2016. Certain loans benefited from higher short term interest rates in 2017, resulting in an improved net interest margin in 2017. For the second quarter of 2017, net interest margin improved to 3.45%, compared to 3.38% in the first quarter of 2017, and 3.36% in the second quarter of 2016.

  NONINTEREST INCOME

  Noninterest income represented 25.8% of total revenues in the second quarter of 2017, compared to 27.6% in the same period in 2016, and 26.4% for the most recent prior quarter. Noninterest income of $17.5 million was up 2.1% compared to the same period last year. Declines in insurance commissions and fees, and gains on the sale of available-for-sale securities during the quarter were offset by improved card services income, which included approximately $500,000 of volume based incentives related to our branding agreement with MasterCard. Other income for the second quarter was up $379,000 from the same quarter in 2016. The improvement included approximately $130,000 of recoveries of nonaccrued interest on loans previously charged off.

  NONINTEREST EXPENSE

  Noninterest expense was $41.6 million for the second quarter of 2017, up $2.2 million, or 5.5%, over the second quarter of 2016. For the year-to-date period, noninterest expense was $82.9 million, up $4.0 million, or 5.1%, from the same period in

2016. The increase in noninterest expense for both the second quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $411,000 of expense related to our recently completed core system conversion, compared to $262,000 in the quarter ended March 31, 2017, and $76,000 in the quarter ended June 30, 2017.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2017. Nonperforming assets represented 0.36% of total assets at June 30, 2017, unchanged from December 31, 2016, and up slightly from 0.32% at June 30, 2016. Nonperforming

asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.55%.

Provision for loan and lease losses was $976,000 for the second quarter of 2017, which was in line with the second quarter of 2016. Net recoveries for the second quarter of 2017 were $15,000 compared to net charge-offs of $383,000 reported in the second quarter of 2016.

The Company’s allowance for originated loan and lease losses totaled $37.0 million at June 30, 2017, and represented 0.91% of total originated loans and leases at June 30, 2017, compared to 0.92% reported for the most recent prior quarter, and 0.93% from one year ago. The total allowance represented 178.58% of total nonperforming loans and leases at June 30, 2017, compared to 164.98% at December 31, 2016, and 183.01% at June 30, 2016.

Though most credit quality metrics remained relatively stable for the quarter, the level of special mention loans increased during the quarter to $39.0 million, up from $21.2 million a year ago, and up from $19.4 million at March 31, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower milk prices over the past 12 months. Though lower prices have negatively impacted cash flow for this group of borrowers, payments on all of the loans in this portfolio were current as of June 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.43% at June 30, 2017, compared to 8.41% reported for December 31, 2016. Total capital to risk-weighted assets at June 30, 2017 was 12.45%, compared to 12.22% reported at December 31, 2016. Both ratios are down from the same period last year, in large part due to the redemption of $20.5 million of 7% fixed rate Trust Preferred securities in January 2017.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

TOMPKINS FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data) (Unaudited)

As of

06/30/2017

76,079 2,096 78,175

1,424,871

139,994 4,070,755

As of

12/31/2016

62,074 1,880 63,954 

Press release:

Demonstrating its dedication to its agricultural customers, Tompkins Insurance Agencies completed a rigorous educational training program to earn distinction as a Nationwide On Your Side® Farm Certified Agency.

 

“For more than a century, Tompkins Insurance Agencies has been committed to providing unrivaled customer service to those who have trusted us with their insurance needs, including local farms and businesses,” said David Boyce, President & CEO, Tompkins Insurance Agencies. “The Farm Certified program from Nationwide is a perfect fit with our commitment to serve as a long-term partner that provides the highest level of service to our customers.”

 

Nationwide has more than 100 years of service and the company’s commitment to agribusiness can be traced back to 1909. Farm Certified agents are trained experts in the field, helping customers take proactive steps to protect their farm or ranch. To become certified, agents complete a series of comprehensive training classes covering the specifics of farming operations, commonly found risks and associated coverages. Agents re-certify every three years, keeping current with changes in agriculture and trends in farming and ranching. 

 

Tompkins Insurance Agencies works with large and small businesses across New York State and Pennsylvania and serve industries including agriculture, municipalities, not-for-profits, fire departments, schools, technology, construction, wineries, manufacturing, hospitals, dealerships, hospitality, and more.