Tompkins Community Bank
Tompkins Bank of Castile and Tompkins Insurance donates $150K toward Healthy Living Campus
Submitted photo and press release:
With the YMCA fundraising underway, Tompkins Bank of Castile and Tompkins Insurance generously donated $150,000 to the Healthy Living Campus Capital Campaign in a check ceremony Thursday (Dec. 12).
Their gift is in celebration of their 150th Anniversary serving the community. The YMCA wishes continued success for Tompkins Bank of Castile and Tompkins Insurance as both of our organizations work together to provide opportunities for the Genesee County area.
The Healthy Living Campus will be transformational for Downtown Batavia and benefit community residents as the new facility will have:
• Accessibility for the handicap;
• State of the art indoor playground;
• Splash pad;
• Teaching kitchen;
• Indoor track;
• Preschool wing;
• Pickup and drop-off for kids;
• Larger gym;
• New programs with the United Memorial Medical Hospital including working with physicians, dietitians, nutritionists, survivor programing to name a few.
Tompkins, one of the largest employers in the City of Batavia, pledged the money this spring.
“This project will be transformational for downtown Batavia and benefit thousands of community residents for many years to come,” said John McKenna, president and CEO of Tompkins Bank of Castile, in March.
“We’re excited to play a pivotal role in a project that is going to bring such positive change to the community,” David Boyce, president and CEO of Tompkins Insurance, added at that time.
The donation will support a $22.5 million land redevelopment project that includes the current YMCA and United Memorial Medical Center (UMMC) Cary Hall on Main Street in Batavia. The initiative will have a substantial impact on Main Street, which is home to the headquarters of Tompkins Bank of Castile and Tompkins Insurance Agencies.
This community initiative is expected to boost the regional economy by about $60 million over the course of its first decade, including jobs at the new campus and during construction, according to the Genesee County Economic Development Center.
Top photo, from left: John McKenna, president and CEO of Tompkins Bank of Castile; Rob Walker, GLOW YMCA chief executive officer; and David Boyce, president and CEO of Tompkins Insurance.
Tompkins Bank of Castile earns national award for small business lending
Press release:
Tompkins Bank of Castile is receiving a prestigious Silver Award from the U.S. Small Business Administration’s Buffalo District Office for approving more than $5 million in small business loans from Oct. 1, 2018 through Sept. 30, 2019, supporting 345 jobs in the local community.
“This level of activity is a clear indication of Tompkins Bank of Castile’s commitment to our local small business community,” said Franklin J. Sciortino, SBA district director. “SBA relies on its lending partners to provide much needed capital to our small businesses.”
Tompkins Bank of Castile is celebrating a remarkable 150 years of supporting the communities where it operates. Based in Batavia, the bank serves the GLOW (Genesee, Livingston, Orleans and Wyoming counties) region and beyond in Rochester and most recently, an expanded presence in Buffalo with its Amherst location.
“Tompkins is proud to support the communities we serve through small business lending,” said John McKenna, president and CEO. “We are grateful to our partners at the SBA for this recognition and plan to build on our long history of community investment in the years to come.”
The award is tentatively scheduled to be presented on Dec. 12.
About Tompkins Bank of Castile
Tompkins Bank of Castile is a community bank with 15 offices in the six-county Western New York region. Services include complete lines of consumer deposit accounts and loans, business accounts and loans, and leasing.
In addition, insurance is offered through an affiliate company, Tompkins Insurance Agencies. Wealth management, trust and investment services are provided through Tompkins Financial Advisors. Further information about the bank is available here.
Batavia resident joins Tompkins Bank of Castile as VP and business development officer
Batavia resident Todd Masters has joined Tompkins Bank of Castile as vice president, business development officer for its Community Banking Group. Based in the Pittsford office, he will serve clients in Rochester and Monroe County.
Masters brings more than 15 years of experience in banking and finance to his new role, and plans to partner with local businesses and institutions to build relationships and help identify solutions and efficiencies. He has extensive experience working with clients in manufacturing, higher education, and health care, among others.
“Todd’s expertise in financial services and deep ties to the local community will be a valuable asset for our customers in the greater Rochester area,” said John McKenna, president and CEO. “We are pleased that he is joining the Tompkins team and look forward to his innovative leadership.”
Masters earned a bachelor’s degree in Business Administration from Elmira College and an MBA from the University of Massachusetts at Amherst. A native of Batavia, he lives there with his wife, Amy, and their two children.
About Tompkins Bank of Castile:
Tompkins Bank of Castile is a community bank with 17 offices in the six-county Western New York region. Services include complete lines of consumer deposit accounts and loans, business accounts and loans, and leasing. In addition, insurance is offered through an affiliate company, Tompkins Insurance Agencies. Wealth management, trust and investment services are provided through Tompkins Financial Advisors. Further information about the bank is available on its website, www.bankofcastile.com.
Tompkins reports record earnings
Press release:
Tompkins Financial Corporation reported record 2018 full year diluted earnings per share of $5.35, an increase of 56.0% compared to the $3.43 per share reported for the period ending December 31, 2017. For the fourth quarter of 2018, diluted earnings per share of $1.23 were up from the $0.16 per share reported in the same quarter last year.
As more fully disclosed in the Non-GAAP disclosure tables included in this press release, it is helpful to view comparisons to prior periods on an adjusted basis to exclude the impact of certain significant non-recurring items. Most notably, earnings per share and net income in the fourth quarter and year-to-date periods of 2017 were impacted by a one-time non-cash write-down of net deferred tax assets in the amount of $14.9 million as a result of the Tax Cuts and Jobs Act of 2017. On an adjusted basis, year-to-date diluted earnings per share for 2018 would have been $5.33, an increase of 20.6% over the adjusted diluted earnings per share of $4.42 reported for the year ending December 31, 2017. For the fourth quarter of 2018, adjusted diluted earnings per share of $1.23 reflecting an increase of 7.0% over the $1.15 adjusted diluted earnings per share reported in the same quarter last year. Refer to Non-GAAP Disclosure tables for additional details.
Due to changes in the Federal tax rates between periods, it is also helpful to view the current period and prior period earnings performance on a pre-tax basis. Income before tax expense was $104.2 million for the year ended December 31, 2018, and $23.8 million in the fourth quarter of 2018, reflecting an increase of 9.4% and 13.5%, respectively, over the same periods in 2017.
President and CEO, Stephen S. Romaine said “We are pleased to once again report record earnings for both the full year and quarterly periods. The results are especially rewarding in today’s environment of uncertain economic conditions. During the quarter, our net interest margin remained relatively stable as growth in average noninterest-bearing deposits helped soften the impact of rising market interest rates. Our diversified revenue sources have served us well in volatile markets, as fees from insurance, wealth management, and banking related services provide a revenue mix that is less dependent on interest rates. During 2018, each of these fee-based business lines reflected growth over the prior year."
SELECTED HIGHLIGHTS FOR YEAR AND FOURTH QUARTER:
- Return on equity was 13.93% for the year ended December 31, 2018, compared to 9.09% for the full year ended December 31, 2017.
- Net interest income for the fourth quarter of 2018 increased over the third quarter of 2018, which represents the 15th consecutive quarterly increase in net interest income.
- Net interest income for the full year was up 5.2% over 2017.
- Total loans of $4.8 billion at December 31, 2018, were up 3.5% over December 31, 2017, while total deposits of $4.9 billion were up 1.1% from the prior year-end.
- Nonperforming assets remain near historically low levels and compare favorably to our industry peers, with nonperforming assets representing 0.42% of total assets at year-end 2018, compared to 0.38% at year-end 2017.
NET INTEREST INCOME
Net interest income of $53.2 million for the fourth quarter of 2018 was up 2.4% over the same period in 2017. For the full year, net interest income was $211.8 million, up $10.5 million, or 5.2% from the same period in 2017.
Growth in net interest income for the year ended December 31, 2018, was largely driven by $356.4 million of growth in average loans during the year, an increase of 8.1% over the prior period. Average deposits for the year ended December 31, 2018, increased $89.7 million, or 1.9% compared to the same period in 2017. Included in the growth of average deposits during 2018 was a $103.5 million increase in average noninterest-bearing deposits, up 8.1% from the prior year average.
Net interest margin for 2018 was 3.37%, down slightly from the 3.41% reported for 2017. The decline in margin during the year was largely due to increases in market interest rates, which has resulted in funding costs rising at a faster pace than asset yields.
NONINTEREST INCOME
Noninterest income represented 26.8% of total revenues in 2018, compared to 25.6% in 2017. For the full year, noninterest income of $77.4 million was up $8.2 million, or 11.9%, when compared to 2017. Noninterest income was $19.9 million for the fourth quarter of 2018 and was up $2.5 million or 14.7% compared to the same period in 2017. Fee income business related to investment services, service charges on deposit accounts, and card services income all contributed to the increase over the fourth quarter of 2017. Declines in the stock market during the fourth quarter of 2018 resulted in lower investment services fees tied to assets under management, though the impact was offset by higher than normal fees associated with trust and estate activities.
Other income in the fourth quarter of 2018 included $2.5 million related to the collection of fees and nonaccrual interest for a credit that was charged off in 2010. Other income for the full year included a $2.9 million gain on the sale of two properties. The sale of these properties was related to the move of the Company’s headquarters in the second quarter of 2018.
NONINTEREST EXPENSE
Noninterest expense was $47.2 million for the fourth quarter of 2018, up $0.9 million, or 2.0%, over the fourth quarter of 2017. For the full year of 2018, noninterest expense was $181.1 million, up $10.0 million, or 5.8%, from the same period in 2017. Noninterest expense increases for both the full year and fourth quarter of 2018 included normal annual increases in salaries and wages. The higher noninterest expense in 2018 included lease write-downs of $2.0 million in the second quarter and $514,000 in the third quarter related to leases on recently vacated space. Results for the quarter and full year periods also include an increase of $1.5 million and $2.8 million, respectively, in professional fees, primarily related to investments in strengthening the Company’s compliance and information security infrastructure.
INCOME TAX EXPENSE
The Company's effective tax rate was 20.9% for the year ended December 31, 2018, compared to 44.8% for the same period in 2017. The decrease is a direct result of the $14.9 million non-cash write-down of net deferred tax assets recorded in the fourth quarter of 2017, which was caused by the decline in the Federal statutory tax rate from 35% in 2017, to 21% in 2018 as a result of the Tax Cuts and Jobs Act of 2017.
ASSET QUALITY
Asset quality trends remained strong in the fourth quarter of 2018. Nonperforming assets represented 0.42% of total assets at December 31, 2018, compared to 0.38% at December 31, 2017. Nonperforming asset levels continue to compare favorably to the most recent Federal Reserve Board Peer Group Average1 of 0.61%.
Provision for loan and lease losses was $2.1 million for the fourth quarter of 2018, compared to $2.0 million for the fourth quarter of 2017. Net charge-offs for the fourth quarter of 2018 were $6,000 compared to net charge-offs of $281,000 in the fourth quarter of 2017.
The Company’s allowance for originated loan and lease losses totaled $43.3 million at December 31, 2018, and represented 0.95% of total originated loans and leases at December 31, 2018. At December 31, 2017, the allowance was $39.7 million and represented 0.91% of total originated loans and leases. Contributing to the $2.1 million increase in the allowance over the level reported at September 30, 2018, was an impairment reserve related to a single credit that was downgraded during the fourth quarter of 2018. The total allowance represented 163.25% of total nonperforming loans and leases at December 31, 2018, compared to 172.84% at December 31, 2017.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 7.81% at December 31, 2018, improved from the 7.49% reported at September 30, 2018, and the 7.24% reported at December 31, 2017.
