Tompkins Financial
Tompkins Financial Corp. reports record fourth quarter earnings
ITHACA -- Tompkins Financial Corporation (NYSE American: TMP) reported diluted earnings per share of $1.61 for the fourth quarter of 2020, up 15 percent compared to $1.40 reported in the fourth quarter of 2019.
Net income for the fourth quarter of 2020 was $24.0 million, a $2.9 million increase over net income reported for the same period in 2019.
For the fiscal year ended Dec. 31, 2020, diluted earnings per share were $5.20, down 3.2 percent from 2019. 2020 net income was $77.6 million, down from $81.7 million, for 2019. Results for 2020 were negatively impacted by economic stress resulting from the COVID-19 pandemic, which contributed to the $16.3 million provision for credit losses recognized during the first quarter of 2020.
President and CEO Stephen Romaine said, "2020 was a challenging year on many fronts, which makes it particularly rewarding that earnings for the fourth quarter reflect the best fourth quarter results in our Company's history. Favorable results were largely driven by improved net interest income, insurance commissions and wealth management fees, all of which were up from the fourth quarter of 2019.
"Despite the positive earnings trends for the quarter, our results for the full year were negatively impacted by the pandemic and related economic restrictions, which have continued to negatively impact customers. We continue to support our customers through our loan payment deferral program and funding of loans under the Paycheck Protection Program. At year end, we believe that we had adequately reserved for potential credit losses in the loan portfolio, though a great deal of uncertainty remains.”
SELECTED HIGHLIGHTS FOR THE YEAR-END 2020:
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Total loans of $5.3 billion at Dec. 31, 2020 were up $342.8 million, or 7 percent over Dec. 31, 2019. The increase over the prior year-end included an outstanding principle balance of $291.3 million of PPP loans that were funded during the second quarter of 2020.
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Total deposits of $6.4 billion was an increase of $1.2 billion, or 23.5 percent over Dec. 31, 2019.
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The ratio of Total Capital to Risk-Weighted Assets improved to 14.39 percent, up from 14.26 percent at Sept. 30, 2020, and 13.53 percent at Dec. 31, 2019.
NET INTEREST INCOME
Net interest income was $57.8 million for the fourth quarter of 2020, compared to $53.2 million reported for the same period in 2019. For the full fiscal year, net interest income was $225.3 million, an increase of $14.7 million or 7 percent from 2019.Average loans for the year ended Dec. 31, 2020 were up $398.0 million, or 8.2 percent compared to 2019. The increase in average loans includes $465.6 million in loans originated under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") in the second quarter of 2020. Asset yields for the year ended Dec. 31, 2020, were down 47 basis points compared to 2019, which reflects the impact of reductions in market interest rates in 2020, and the addition of the lower yielding PPP loans originated in the second quarter. While PPP loans were a significant contributor to average loan growth for the year, increases in residential real estate loans (up 5.7 percent from 2019) and commercial real estate (up 5.6 percent from 2019), also contributed to the growth in 2020 average loan balances.
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Average total deposits for 2020 were up $1.0 billion, or 20.1 percent versus 2019. Average noninterest bearing deposits were up $349.9 million or 24.9 percent compared to 2019. Average deposit balances benefited from $465.6 million of PPP loan originations during the second quarter of 2020, the majority of which were deposited in Tompkins checking accounts. For 2020, the average rate paid on interest-bearing deposit products decreased by 38 basis points from 2019. The total cost of interest-bearing liabilities for 2020 declined by 52 basis points to 0.60 percent from 2019.
Net interest margin was 3.12 percent for the fourth quarter of 2020, down compared to the 3.44 percent reported for the fourth quarter of 2019, and 3.26 percent for the third quarter of 2020. The decline in net interest margin during the fourth quarter, when compared to the third quarter of 2020, was mainly due to a decrease in overall asset yields. The decrease in average asset yields was due to lower securities yields, as well as a slight shift in the composition of average earning assets, with a greater mix of lower yielding securities and interest bearing balances, and a decrease in average loan balances reflecting lower PPP loan balances. The decrease in net interest margin was partially offset by lower average funding costs.
As a result of its participation in the SBA's PPP, in the fourth quarter of 2020, the Company recorded net deferred loan fees of $4.5 million, which are included in interest income. For the fiscal year, net deferred loan fees from PPP loan originations were $9.2 million.
NONINTEREST INCOME
Noninterest income represented 24.6 percent of total revenues in the fourth quarter of 2020, compared to 25.2 percent in the same period in 2019. Noninterest income of $18.8 million for the fourth quarter of 2020 was up 4.8 percent compared to the same period in 2019. For the full fiscal year, noninterest income of $73.9 million was down 2.1 percent from 2019. Total fee based services for the year ended Dec. 31, 2020 were $64.6 million, a decrease of 2.7 percent compared to 2019. The reduction in fee based income in 2020, when compared to 2019, is largely related to the pandemic-related travel and business restrictions, which reduced card services fees and service charges on deposit accounts.
NONINTEREST EXPENSE
Noninterest expense was $46.4 million for the fourth quarter of 2020, up $505,000, or 1.1 percent, over the fourth quarter of 2019. For the full fiscal year, noninterest expense was $185.4 million, up $3.5 million, or 2 percent, over 2019. The increase in noninterest expense for the year ended Dec. 31, 2020 was primarily attributable to normal annual increases in salaries and wages, which were up $4.4 million or 3.9 percent over 2019.
INCOME TAX EXPENSE
The Company's effective tax rate was 20.4 percent for the fourth quarter of 2020, compared to 19.8 percent for the same period in 2019. The effective tax rate for the year ended Dec. 31, 2020 was 20.4 percent, compared to 20.5 percent reported for 2019.
ASSET QUALITY
Provision for credit losses for the fourth quarter of 2020 was $6,000 compared to a negative $1 million for the same period in 2019. Provision expense for the year ended Dec. 31, 2020 was $16.2 million, compared to $1.4 million for 2019. The first quarter of 2020 included provision expense of $16.3 million related to the impact of the economic conditions related to COVID-19 on economic forecasts and other model assumptions relied upon by management in determining the allowance. Net charge-offs for the fourth quarter of 2020 were $630,000 compared to net charge-offs of $479,000 reported in the fourth quarter of 2019.
The allowance for credit losses represented 0.98 percent of total loans and leases at Dec. 31, 2020, up from 0.97 percent at Sept. 30, 2020, and 0.81 percent at Dec. 31, 2019. Nonperforming loans and leases totaled $45.8 million at Dec. 31, 2020, compared to $33.8 million at Sept. 30, 2020 and $31.4 million at Dec. 31, 2019. The ratio of the allowance to total nonperforming loans and leases was 112.87 percent at Dec. 31, 2020, down compared to 154.68 percent at Sept. 30, 2020 and 126.90 percent at Dec. 31, 2019. Nonperforming assets represented 0.60 of total assets at Dec. 31, 2020, up from 0.44 percent at Sept. 30, 2020, and up from 0.47 percent at Dec. 31, 2019.
Special Mention loans totaled $121.3 million at the end of the fourth quarter of 2020, in line with the quarter ended Sept. 30, 2020, and up compared to the $29.8 million reported for the fourth quarter of 2019. Total Substandard loans increased during the quarter to $68.6 million at Dec. 31, 2020, compared to $45.4 million at Sept. 30, 2020, and $60.5 million at Dec. 31, 2019. The increases in nonperforming loans and leases and Substandard loans were mainly related to the downgrades of credit in the loan portfolio related to the hospitality industry. Included in the nonperforming and Substandard loans and leases are 17 loans totaling $17.8 million, that are currently in deferral status.
During 2020, overall credit quality was supported by several plans initiated by the Company in response to the COVID-19 pandemic. As previously announced, Tompkins initiated and participated in a number of credit initiatives to support customers who have been impacted by the economic conditions associated with the COVID-19 pandemic. The Company implemented a payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. Weekly deferral requests for the month of December were down 98.5 percent from peak levels the Company experienced in late March. As of Dec. 31, 2020, total loans that continued in a deferral status amounted to approximately $212.2 million, representing 4 percent of total loans. Of loans that had come out of the deferral program as of Dec. 31, 2020, about 94.4 percent had made at least one payment and only 0.13 percent were more than 30 days delinquent.
As previously noted, the Company participated in the PPP, which provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related expenses and certain other eligible business operating costs, all in accordance with the rules and regulations established by the SBA. The Company began accepting applications for PPP loans on April 3, 2020, and had funded approximately 2,998 loans totaling about $465.6 million when the initial program ended. As of Dec. 31, 2020, approximately 1,484 PPP loans originated by the Company, totaling $244 million, had been submitted to the SBA for forgiveness under the terms of the PPP program, of which approximately 1,212 loans totaling $171.1 million had been forgiven by the SBA as of Dec. 31, 2020.
Romaine added, "Our deferral program and our participation in the PPP program are examples of how Tompkins has remained committed to supporting our clients and communities during these challenging times. Through year end, we had supported approximately 6,800 customers with these programs. We are also pleased to be participating in the latest round of PPP financing and as of January 28, 2021 had submitted 1,007 PPP loan applications totaling $143.9 million to the SBA for approval."
CAPITAL POSITION
Capital ratios remained well above the regulatory minimums for well capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets improved to 14.39 at Dec. 31, 2020, up from 14.26 percent at Sept. 30, 2020, and 13.53 percent at Dec. 31. The ratio of Tier 1 capital to average assets was 8.75 percent at Dec. 31, 2020, compared to 8.85 percent at Sept. 30, 2020, and 9.61 percent at Dec. 31, 2019. The Dec. 31, 2020 Tier 1 capital to average assets ratio was negatively impacted by balance sheet growth associated with the PPP loans originated in the second quarter of 2020.
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, 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 http://www.tompkinsfinancial.com
Tompkins donates thousands of dollars this week for new 'Banksgiving' initiative
Press release:
In recognition of National Gratitude Month, Tompkins Bank of Castile, Tompkins Insurance Agencies and Tompkins Financial advisors are donating a total of $7,500 to several food pantries, churches and school districts throughout Western New York. The initiative — which is rolling this Thanksgiving week — is called “Banksgiving.”
It is being done in honor of National Gratitude Month.
In Genesee County, the organizations benefitting from the Banksgiving donation are The City Church in Batavia and Hope Center of Le Roy Inc.
“At Tompkins Bank of Castile, supporting the communities we serve is one of our core values and highest priorities. We’ve seen first-hand the pandemic’s impact on individuals and businesses in our own communities,” said John McKenna, president and CEO.
“In honor of our customers and in support of those in our communities, we’ve made additional contributions to support local organizations, which have become a lifeline for many during this difficult time.”
The full list of organizations can be found here.
Tompkins Insurance Agencies hires new vice president and commericial insurance service manager
Tompkins Insurance Agencies is pleased to announce that Kim Nevinger has been recently hired as vice president and commercial insurance service manager for New York.
She is responsible for the overall direction and management of the commercial lines service department, and as part of the agency’s senior leadership team, supports strategic initiatives across the organization.
Nevinger has more than 30 years of experience in the insurance industry.
She was formerly a vice president with First Niagara Risk Management/Key Insurance & Benefits Services/USI Insurance Services and a principle with Shepard, Maxwell and Hale.
She attended Morrisville State College and has vast experience at multiple managerial levels, as well as the AMS360/ImageRight management and document management systems.
Nevinger earned the prestigious Certified Insurance Counselor (CIC) designation.
GCC Foundation and Tompkins Financial invite all to 'Be the Light' for virtual musical fundraiser Dec. 12
When Thomas A. and Kim M. Cox found out that Genesee Community College intended to move forward with their annual Encore event on Saturday, Dec. 12, despite the obstacles presented by the COVID-19 pandemic, they were intrigued.
"We've always enjoyed working with GCC, including on Encore in the past and we have been supporters of the GCC Foundation and the scholarships it provides for years," said Tom Cox. "We were excited to take on the challenge when the Foundation asked us to return and cochair Encore 2020."
Last month, Kim and Tom, a current member of the GCC Foundation Board of Directors, kicked off the Encore 2020 efforts and got right to work.
The couple excitedly announced that this year's Encore event is being sponsored by Tompkins Financial Advisors, Tompkins Bank of Castile, and Tompkins Insurance Agencies.
"Tompkins has always been community focused, and now more than ever, it's important for organizations to step up and recognize the impact GCC has on its students and our community," said David S. Boyce, Tompkins Insurance president and CEO. "Thank you to GCC for its role in educating our future leaders."
With the support of Tompkins Financial, the GCC Foundation has been able to secure very special performances by the Genesee Symphony Orchestra as well as a special appearance by members of the Genesee Chorale!
Perhaps the newest feature of this year's Encore event will be the venue -- the entire performance will be available online! Visit here for tickets to access the performance from the comfort of one's own home and an extra special offer that will make the evening even brighter!
Join the virtual celebration on Saturday, Dec. 12, at 6 p.m.
To "Be the Light" and sponsor Encore 2020, please complete the online forms here or contact the Foundation Office at (585) 345-6809, or foundation@genesee.edu today.
The following sponsorships are available:
- Virtual Table Sponsor – $2,000 Sponsorship includes 10 tickets to the event, program recognition, and dinner for 10 (takeout or gift certificate).
- Conductor’s Circle Sponsor – $1,000 – Sponsorship includes six tickets to the event, program recognition and dinner for six (takeout or gift certificate).
- Golden Baton Society Sponsor – $600 – Sponsorship includes four tickets to the event, program recognition and dinner for four (takeout or gift certificate).
- Inner Circle Sponsor – $300 – Sponsorship includes two tickets to the event, program recognition and dinner for two (takeout or gift certificate).
- Platinum Patron Ticket – $100 – Ticket includes one ticket to the event, and dinner for one (takeout or gift certificate).
- Concert Ticket – $50 – Ticket includes admission for one to the event (no dinner).
Area Restaurants Generously Supporting Encore with Dinner Takeout Menus
Alex’s Place – Batavia
Black & Blue – Rochester
Hole In The Wall – Perry
Yard of Ale – Piffard
Zambistro Restaurant – Medina
Tompkins Financial Corp. reports record third-quarter earnings and cash dividend
Press release:
Tompkins Financial Corporation (NYSE American: TMP), parent company of Tompkins Bank of Castile, Tompkins Insurance Agencies, and Tompkins Financial Advisors, has reported record year-to-date and second quarter earnings. The company also has announced that its Board of Directors approved payment of a regular quarterly cash dividend, and has authorized a new stock repurchase program.
For full details, please see the attached news releases, or you can access the online versions through the links below.
- Tompkins Financial Corporation Reports Record Third Quarter Earnings
- Tompkins Financial Corporation Reports Cash Dividend
About Tompkins Financial Corporation
Tompkins Financial Corporation is a financial services company serving Central, Western and Hudson Valley regions of New York and the southeastern region of Pennsylvania. Tompkins Financial operates in Western New York as Tompkins Bank of Castile, Tompkins Insurance Agencies, and Tompkins Financial Advisors. Further information is available at www.tompkinsfinancial.com
Tompkins Bank of Castile is a community bank with 16 offices in the five-county Western New York region. Services include complete lines of consumer deposit accounts and loans, business accounts and loans, and leasing. Further information about the bank is available on its website, www.bankofcastile.com.
Tompkins Insurance Agencies Inc., offers personalized service, local decision-making and a broad range of services for consumers and businesses. It is an independent insurance agency offering personal and business insurance and employee benefits services through more than 50 different companies. The firm operates six offices in central New York, 16 offices in Western New York and seven offices in Southeast Pennsylvania. Further information is available atwww.tompkinsins.com.
Tompkins Financial Advisors is the wealth management firm of Tompkins Financial Corporation. With more than a century of experience in helping clients to build, protect, and preserve wealth, Tompkins Financial Advisors provides financial planning, investment management, trust services and estate administration. For more information, visit www.tompkinsfinancialadvisors.com.
Tompkins Financial Corp. reports record YTD and second quarter earnings
Press release:
ITHACA -- Tompkins Financial Corporation (NYSE American: TMP), parent company of Tompkins Bank of Castile, Tompkins Insurance Agencies, and Tompkins Financial Advisors, today reported record year-to-date and second quarter earnings.
The company also has announced that its Board of Directors approved payment of a regular quarterly cash dividend of $0.52 per share, payable on Aug. 14, to common shareholders of record on Aug. 3, 2020, and has authorized a new stock repurchase program.
Tompkins Financial Corporation reported diluted earnings per share of $1.44 for the second quarter of 2020, up 13.4 percent compared to $1.27 reported in the second quarter of 2019. Net income for the second quarter of 2020 was $21.4 million, compared to $19.4 million reported for the same period in 2019.
For the year-to-date period ended June 30, 2020, diluted earnings per share were $1.97, down 25.1 percent from the same period in 2019. Year-to-date net income was $29.4 million, down from $40.4 million, for the same period in 2019. Results for the 2020 year-to-date period were negatively impacted by economic stress resulting from the COVID-19 pandemic, which contributed to the $16.3 million provision for credit losses recognized during the first quarter of 2020.
"We are pleased to report strong financial results for the quarter despite a very challenging business climate," said Stephen S. Romaine, president & CEO. "Although the longer term impact of the pandemic and related economic conditions are still unknown, there have been several recent positive trends noted with certain national economic indicators, such as reduced levels of unemployment, improving retail sales and improving consumer confidence.
"At Tompkins, we have seen several positive trends as well, with very strong mortgage application volumes in the second quarter, higher levels of debit card spending, and favorable credit quality measures when compared to last quarter. We are encouraged by some of these recent favorable trends, though the recent rise in COVID-19 cases nationally makes it clear that much uncertainty remains. We will remain vigilant in monitoring risk trends as we navigate these challenging times.”
For full details, you can access the online versions through the links below.
- Tompkins Financial Corporation Reports Record Year-to-Date and Second Quarter Earnings
- Tompkins Financial Corporation Reports Cash Dividend
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. Tompkins Financial operates in Western New York as Tompkins Bank of Castile, Tompkins Insurance Agencies, and Tompkins Financial Advisors. Further information is available at www.tompkinsfinancial.com.
Tompkins Bank of Castile is a community bank with 16 offices in the five-county Western New York region. Services include complete lines of consumer deposit accounts and loans, business accounts and loans, and leasing. Further information about the bank is available on its website, www.bankofcastile.com.
Tompkins Insurance Agencies Inc., offers personalized service, local decision-making and a broad range of services for consumers and businesses. It is an independent insurance agency offering personal and business insurance and employee benefits services through more than 50 different companies. The firm operates six offices in Central New York, 16 offices in Western New York and seven offices in Southeast Pennsylvania. Further information is available at www.tompkinsins.com.
Tompkins Financial Advisors is the wealth management firm of Tompkins Financial Corporation. With more than a century of experience in helping clients to build, protect, and preserve wealth, Tompkins Financial Advisors provides financial planning, investment management, trust services and estate administration. For more information, visit www.tompkinsfinancialadvisors.com.
Sweet! Tompkins donates Oliver's Candy Bars to frontline workers at Rochester Regional Health
Submitted photo and press release:
In an effort to brighten the day for local frontline workers during the COVID-19 pandemic, Tompkins Bank of Castile, Tompkins Insurance Agencies and Tompkins Financial Advisors donated 3,400 Oliver’s Candy Bars to the Rochester Regional Health Staff.
The sweet treat will be handed out to all employees as a way to say "Thank You!"
Pictured from left are: Steve Beardsley, senior vice president, Commercial Banking regional manager, presents Jim Creighton and Gina Burden-Rambert of Rochester Regional Health with 3,400 candy bars to distribute to their staff.
