Tompkins Financial
GLOW Region Solid Waste Committee to host 'Shred-a-thon' for personal documents June 12
Press release:
The GLOW Region Solid Waste Management Committee is pleased to announce that it will hold a Shred-a-thon for person documents. The program will be held Saturday, June 12 at the Town of Pavilion office/highway facility, located at 1 Woodrow Road (off Route 63 by the railroad tracks) in Pavilion.
The program will run from 8:30 to 11:30 a.m., on first come, first served basis, without appointments. This is a free event and residents from Genesee, Livingston and Wyoming counties are eligible to bring materials.
Materials accepted include presorted documents such as medical, bank, tax and other records containing account numbers and/or private information.
Unacceptable materials include: magazines, newspaper clippings and manila folders and CANNOT include metal clips or bindings. There is a limit of five (5) boxes per vehicle. Box size should be no larger than 10” x 12” x 15” (banker’s box size). GLOW’s vendor, Genesee Data Management (Arcgo) will be securing materials in locked 95 gallon totes on site and taking them to their Batavia facility for shredding and recycling.
The program is made possible by a generous donation from Tompkins Bank of Castile, GLOW’s county contributions and a DEC MWRR grant. For questions on this and other GLOW programs contact the GLOW office at (585) 815-7906 or 800-836-1154 or (585) 344-2580, ext. 5463.
Tompkins Financial Corp. reports cash dividend and record first quarter earnings
Press releases:
ITHACA -- Tompkins Financial Corporation (NYSE American:TMP)
Tompkins Financial Corporation reports cash dividend
Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.54 per share, payable on May 17, 2021, to common shareholders of record on May 11, 2021.
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, and Tompkins Insurance Agencies Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.
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Tompkins Financial Corporation reports record first quarter earnings
Tompkins Financial Corporation reported diluted earnings per share of $1.72 for the first quarter of 2021, 224.5 percent over the first quarter of 2020. Net income was $25.6 million for the first quarter of 2021, an increase of 222.4 percent from the $7.9 million reported for the same period in 2020.
President and CEO Stephen Romaine said, "We are extremely pleased to start off 2021 with record quarterly earnings. Results for the quarter, when compared to the same period last year, reflected favorable revenue trends for all three business lines, including increased net interest income, increased insurance commissions, and increased investment services fees. At the same time, expenses for the quarter were down from the same quarter last year.
"Growth comparisons to the previous year are significantly impacted by the change in provision for credit losses from a $16.3 million expense in the first quarter of 2020, compared to a $2.5 million credit in the first quarter of 2021. The provision for the first quarter of 2020 reflected the highly uncertain economic conditions related to the onset of the COVID-19 pandemic and economic forecasts and other model assumptions relied upon by management in determining the allowance.”
SELECTED HIGHLIGHTS FOR THE FIRST QUARTER:
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Diluted earnings per share of $1.72 represents the best quarter in the Company's history, and is up 224.5 percent over the same period in 2020.
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Provision for credit losses was a $2.5 million credit for the first quarter of 2021, compared to an expense of $16.3 million for the same period last year.
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Total loans of $5.3 billion at March 31, 2021 were up $355.0 million, or 7.2 percent over March 31, 2020. Loan growth over the prior period includes a $370.0 million increase related to loans originated under the Small Business Association (SBA) Paycheck Protection Program (PPP).
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Total deposits of $6.9 billion at March 31, 2021, an increase of $1.5 billion, or 28.4 percent over March 31,
2020
NET INTEREST INCOME
Net interest income was $55 million for the first quarter of 2021, up from $53.0 million for the same period in 2020, and down from $57.8 million for the most recent prior quarter. Net interest income for the current quarter included $2.8 million of net deferred loan fees associated with PPP loans, compared to net deferred loan fees of $4.5 million in the fourth quarter of 2020. There were no net deferred loan fees related to PPP loans in the first quarter of 2020. Net interest income in the first quarter of 2021 also benefited from lower rates paid on deposit products due to lower market interest rates.
Average loans for the quarter ended March 31, 2021 were up $377.3 million, or 7.7 percent compared to the same period in 2020. The increase in average loans was mainly in commercial loans, driven largely by PPP loans and commercial real estate loans. Asset yields for the quarter ended March 31, 2021, were down 84 basis points compared to the quarter ended March 31, 2020, which reflects the impact of reductions in market interest rates over the past 12 months as well as the increase in average securities and average interest bearing balances due from banks. While PPP loans were a significant contributor to average loan growth, increases in commercial real estate and residential loans were up 5.6 percent and 1.7 percent, respectively, over the same period in the prior year.
Average total deposits for the first quarter of 2021 were up $1.3 billion, or 25.4 percent compared to the same period in 2020. Average noninterest bearing deposits for the three months ended March 31, 2021 were up $540 million or 38.3 percent compared to the three months ended March 31, 2020. Average deposit balances during the first quarter of 2021 benefited from PPP loan originations, the majority of which were deposited in Tompkins checking accounts. For the first quarter of 2021, the average rate paid on interest-bearing deposit products decreased by 47 basis points from the same period in 2020 due to the overall decline in market interest rates. The total cost of interest-bearing liabilities was 0.38 percent at March 31, 2021, a decline of 54 basis points from March 31, 2020.
Net interest margin was 3.01 percent for the first quarter of 2021, compared to 3.44 percent reported for the same period in 2020, and 3.12 percent for the fourth quarter of 2020.
NONINTEREST INCOME
Noninterest income of $20.0 million was up 5.4 percent compared to the same period in 2020. Growth over the same quarter last year was supported by a 13.9-percent increase in insurance commissions and fees, an 11.2-percent increase in investment services income, and a 9.2-percent increase in card services income. These increases were partially offset by lower deposit fees and lower gains on securities transactions. Noninterest income represented 26.6 percent of total revenues for the first quarter of 2021.
NONINTEREST EXPENSE
Noninterest expense was $45.2 million for the first quarter of 2021, down $549,000, or 1.2 percent, from the first quarter of 2020. Salaries and employee benefits were relatively flat when compared to the same quarter last
year. The decrease in noninterest expense for the first quarter of 2021 was primarily attributable to lower marketing expenses, which were down $447,000 from the first quarter of 2020.
INCOME TAX EXPENSE
The Company's effective tax rate was 20.7 percent for the first quarter of 2021, compared to 19.4 percent for the same period in 2020.
ASSET QUALITY
Provision for credit losses for the first quarter of 2021 was a credit of $2.5 million compared to an expense of $16.3 million for the same period in 2020. Net recoveries for the quarter ended March 31, 2021 were $180,000 compared to charge-offs of $1.2 million reported for the same period in 2020.
The allowance for credit losses represented 0.93 percent of total loans and leases at March 31, 2021, down from 1.06 percent at March 31, 2020, and 0.98 percent at Dec. 31, 2020. Nonperforming loans and leases totaled $47.7 million at March 31, 2021, compared to $30.7 million at March 31, 2020, and $45.8 million at Dec. 31, 2020. The ratio of the allowance to total nonperforming loans and leases was 103.38 percent at March 31, 2021, down compared to 170.74 percent at March 31, 2020, and 112.87 percent at Dec. 31, 2020. Nonperforming assets represented 0.59 percent of total assets at March 31, 2021, up from 0.46 percent at March 31, 2020, and down from 0.60 percent at Dec. 31, 2020.
Special Mention and Substandard loans and leases totaled $185.2 million at March 31, 2021, up compared to the $90.0 million at March 31, 2020, and down compared to the $189.9 million reported at Dec. 31, 2020. Total Substandard loans and leases of $68.5 million at March 31, 2021, were in line with Dec. 31, 2020, and up compared to the $52.9 million reported at March 31, 2020. The increases in nonperforming loans and leases and Substandard loans compared to prior year, were mainly related to the downgrades of credits in the loan portfolio related to the hospitality industry, which was significantly impacted by the COVID-19 pandemic. Included in the nonperforming loans and leases and Substandard loans and leases are 12 loans totaling $35.5 million that are currently in deferral status.
During 2020 and 2021, overall credit quality has been 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. As of March 31, 2021, total loans that continued in a deferral status amounted to approximately $195.6 million, representing 3.7 percent of total loans.
As previously noted, the Company participated in the PPP, which provides SBA 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 2,998 loans totaling approximately $465.6 million when the initial program ended. As of April 10, 2021, approximately 2,314 of these PPP loans totaling $300.8 million had been forgiven by the SBA under the terms of the PPP program.
In addition, on Jan. 19, 2021, the Company began accepting both first draw and second draw applications for the reopening of the PPP program. As of April 10, 2021, the Company had submitted 2,013 applications totaling $223.4 million to the SBA, of which 1,919 applications totaling $215.9 million had been approved by the SBA and disbursed to customers.
CAPITAL POSITION
Capital ratios at March 31, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets improved to 14.62 percent at March 31, 2021, up from 13.62 percent at March 31, 2020, and 14.39 percent at Dec. 31, 2020. The ratio of Tier 1 capital to average assets was 8.89 percent at March 31, 2021, compared to 9.53 percent at March 31, 2020, and 8.75 percent at Dec. 31, 2020.
Tompkins Financial Advisors expand 'Women & Wellness' financial roundtable discussions to WNY
Press release:
In response to data showing women’s increased interest in saving more for unexpected circumstances since the pandemic, Tompkins Financial Advisors is growing its recently launched Women & Wellness financial roundtable discussions across its footprint.
The free monthly program began this fall in Central New York, but interest from beyond the region, along with the virtual format, led to a decision to make the forums open to women in the Western New York area. Each 30-minute session features a female financial expert sharing experiences and tips around financial well-being.
The next presentation will be held on Friday, April 16 at 10 a.m.
Led by Laura Ward, LMFT, CT and the manager of psychosocial services at Hospicare, the April discussion will center around “Professional Self-care for a New Way of Work – an Interactive Discussion.”
It will cover of-the-times issues, including practical ways of maintaining professional wellness and staying motivated, as well as dealing with work and home transitions, during the coronavirus pandemic and now.
To register for the next Women & Wellness Monthly Financial Roundtable Discussions, or future roundtables, please click here.
Previous sessions have been recorded and can also be accessed through the registration link on Tompkins’ website, including presentations on:
- Investing 101
- Managing Your Finances During Periods of Uncertainty
- Financial Planning: Time to Take Control
- The Art of Building Wealth
- Retirement Planning: Living Longer & Saving More
- Estate Planning: Modern Families Need Modern Planning
“The response to the roundtables so far has been incredible,” said Susan Redsicker, Tompkins Financial Advisors' vice president and director of Financial Planning and one of the program’s founders.
“Our goal, when we got started, was to educate women in the community and to create a space for women to talk frankly about money. Including women in the Western New York region is an important step in making sure more women have access to these vital conversations.”
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.