Exhibit 99.1
[COMPANY LOGO GRAPHIC OMITTED]
For more information contact:
James J. Byrnes, Chairman & CEO
James W. Fulmer, President
Francis M. Fetsko, CFO
Tompkins Trustco, Inc. 607.273.3210
For Immediate Release
Wednesday, July 23, 2003
Tompkins Trustco, Inc. reports second quarter earnings per share increase of
5.6%.
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported diluted earnings per share of $0.75 for the
second quarter of 2003, an increase of 5.6% from the $0.71 earned in the same
quarter last year. Per share numbers included in this press release have been
adjusted for a 10% stock dividend, which was approved by the Company's board of
directors on July 22, 2003, payable on August 15, 2003, to shareholders of
record on August 5, 2003. Net income of $6.2 million for the second quarter of
2003 increased by 4.5% over the $5.9 million reported in the second quarter of
2002. Diluted earnings per share were $1.46 for the first six months of 2003, an
increase of 9.0% over the same period in 2002. Net income for the year to date
period ended June 30, 2003, was $12.1 million, up 8.5% from $11.1 million for
the same period in 2002.
James J. Byrnes, Chairman and Chief Executive Officer stated, "We are pleased
with our second quarter operating results in the current challenging economic
climate. Low interest rates have resulted in a decline in our net interest
margin from 4.69% in the second quarter of 2002, to 4.25% in the second quarter
of 2003. The margin decline has been offset by growth in earnings assets,
resulting in a modest increase in net interest income for the year to date and
second quarter of 2003."
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Total assets were $1.8 billion at June 30, 2003, up 12.6% over June 30, 2002.
Asset growth over the past twelve months included a $116.0 million increase in
total loans and leases, and a $53.3 million increase in the securities
portfolio. Funding for asset growth was supported by $92.1 million in deposit
growth, along with a $56.0 million increase wholesale repurchase agreements.
"As loan growth has been a key contributor to our solid operating performance,
we have continued our focus on high standards for credit quality," Byrnes
stated. Net loan and lease charge-offs for the first half of 2003 represented a
modest 0.13% of average loans and leases, which is up slightly from 0.11% for
the same period last year. Nonperforming assets represented 0.43% of total
assets at June 30, 2003, compared to 0.42% at June 30, 2002.
Net interest income was $16.6 million for the second quarter of 2003, an
increase of 1.0% from the same period in 2002. For the year to date period ended
June 30, 2003, net interest income was $33.1 million, an increase of 3.6% over
the same period last year.
Provision for loan/lease losses was $598,000 for the second quarter of 2003, an
increase of 37.5% from the second quarter of 2002. For the six-month period
ended June 30, 2003, the provision for loan/lease losses was $1.1 million, up
$327,000 or 40.3% from the same period last year. The increase in the provision
for loan/lease losses in 2003 is attributable to an increase in net charge-offs,
an increase in the dollar volume of non-performing loans, as well as continued
growth in the loan portfolio.
Noninterest income was $6.6 million for the second quarter of 2003, an increase
of 13.9% from the second quarter of 2002. For the six-month period ended June
30, 2003, noninterest income was $12.7 million, up 14.6% over the same period in
2002. Noninterest income for the first half of 2003 saw increases in nearly all
fee income categories. Key noninterest income growth categories for the period
included: $3.4 million in service charges on deposit accounts, up $470,000; $2.6
million in insurance commissions and fees, up $170,000; $825,000 in gains on the
sale of residential mortgage loans, up $520,000; and $342,000 in net realized
gains on the sale of securities, up $362,000. Year to date revenue from trust
and investment services was $2.0 million, down $124,000 from the prior year.
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Noninterest expenses for the second quarter of 2003 were $13.2 million, up 3.8%
over the same period in 2002. For the year to date, noninterest expenses were
$26.4 million, up 4.3% from the first six months of 2002. These increases were
primarily due to higher personnel related costs, including salaries, wages, and
employee benefits, which were up a combined 11.8% for the year to date. Staffing
related to new offices contributed to the increase in personnel related
expenses. New offices opened since June 2002 included the Lagrange Office of
Mahopac National Bank opened in July 2002; and the Cortland and Auburn Offices
of Tompkins Trust Company, opened in December 2002, and July 2003, respectively.
Overall, the growth in noninterest expense for both the quarter and year to date
was relatively modest in comparison to revenue growth.
During the second quarter, the Company repurchased 1,180 of its common stock at
an average price of $44.58, under a stock repurchase plan authorized by the
board of directors in August 2002. For the year to date, 83,050 shares have been
repurchased at an average price of $42.53. The plan authorizes the repurchase of
up to 400,000 shares over a 24- month period. As of June 30, 2003, there were
315,750 shares available under the plan to be repurchased.
Mr. Byrnes also announced the recent promotions of three corporate officers.
Francis M. Fetsko was promoted to Executive Vice President and Chief Financial
Officer, Lawrence A. Updike to Executive Vice President, and Robert B. Bantle to
Executive Vice President. Mr. Updike leads the management of Operations, Systems
and Technology for the company. Mr. Bantle manages the Community Banking
Division of Tompkins Trust Company and has corporate duties as Compliance
Officer and in planning and personnel management.
Tompkins Trustco, Inc. operates 34 banking offices (including our newest Trust
Company office in Auburn, NY, which opened in July 2002) in the New York State
markets served by the Company's subsidiary banks - Tompkins Trust Company, The
Bank of Castile, and Mahopac National Bank. Through its community banking
subsidiaries, the Company provides traditional banking services, and offers a
full range of money management services through Tompkins Investment Services (a
division of Tompkins Trust Company). The Company also offers insurance services
through its Tompkins Insurance Agencies, Inc. subsidiary, an independent agency
serving individuals and business clients throughout western New York. Each
Tompkins subsidiary operates with a community focus, meeting the needs of the
unique communities served.
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"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, risk, and uncertainties, all of
which could change over time. Actual results could differ materially
from forward-looking statements.
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Tompkins Trustco, Inc. - Condensed Consolidated Statements of Condition
(Unaudited)
(In thousands, except share data)
As of As of
ASSETS 06/30/2003 12/31/2002
----------- -----------
Cash and noninterest bearing balances due from banks $ 57,159 $ 53,898
Interest bearing balances due from banks 26,311 10,000
Federal funds sold 325 400
Available-for-sale securities, at fair value 536,594 493,780
Held-to-maturity securities, fair value of $43,305 at
June 30, 2003 and $40,260 at December 31, 2002 40,525 38,722
Loans and leases net of unearned income and deferred costs and fees 1,043,843 995,346
Less: Reserve for loan/lease losses 12,257 11,704
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Net Loans/Leases 1,031,586 983,642
Bank premises and equipment, net 27,411 27,111
Corporate owned life insurance 21,894 21,382
Goodwill 10,761 10,684
Intangible assets 3,133 3,422
Accrued interest and other assets 30,539 27,162
- ---------------------------------------------------------------------------------------------------------
Total Assets $ 1,786,238 $ 1,670,203
=========================================================================================================
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 704,106 $ 710,753
Time 392,566 379,603
Noninterest bearing 265,607 249,929
- ---------------------------------------------------------------------------------------------------------
Total Deposits 1,362,279 1,340,285
Federal funds purchased and securities sold under agreements to repurchase 149,186 77,843
Other borrowings 97,567 81,930
Other liabilities 21,404 18,059
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Total Liabilities $ 1,630,436 $ 1,518,117
- ---------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 1,495 1,489
Shareholders' equity:
Common Stock - par value $.10 per share, authorized 15,000,000 shares
Issued: 7,397,133 at June 30, 2003; and 7,465,286 at December 31, 2002 740 747
Surplus 42,847 45,997
Undivided profits 104,358 96,722
Accumulated other comprehensive income 6,828 7,597
Treasury stock, at cost - 24,529 shares at June 30, 2003,
and December 31, 2002 (466) (466)
- ---------------------------------------------------------------------------------------------------------
Total Shareholders' Equity $ 154,307 $ 150,597
- ---------------------------------------------------------------------------------------------------------
Total Liabilities, Minority Interest in Consolidated Subsidiaries
and Shareholders' Equity $ 1,786,238 $ 1,670,203
=========================================================================================================
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Tompkins Trustco, Inc. - Condensed Consolidated Statements of Income (Unaudited)
Three months ended Six months ended
(In thousands, except per share data) 06/30/2003 06/30/2002 06/30/2003 06/30/2002
---------- ---------- ---------- ----------
INTEREST AND DIVIDEND INCOME
Loans $ 17,104 $ 16,887 $ 33,996 $ 33,652
Interest on balances due from banks 3 0 18 0
Federal funds sold 1 45 14 101
Available-for-sale securities 5,157 6,517 10,633 12,162
Held-to-maturity securities 386 421 780 707
- -----------------------------------------------------------------------------------------------------------------
Total Interest and Dividend Income 22,651 23,870 45,441 46,622
- -----------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 731 794 1,485 1,697
Other deposits 3,507 4,991 7,316 9,605
Federal funds purchased and Securities sold under agreements
to repurchase 792 636 1,405 1,275
Other borrowings 1,068 1,063 2,137 2,084
- -----------------------------------------------------------------------------------------------------------------
Total Interest Expense 6,098 7,484 12,343 14,661
- -----------------------------------------------------------------------------------------------------------------
Net Interest Income 16,553 16,386 33,098 31,961
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Less: Provision for loan/lease losses 598 435 1,138 811
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Net Interest Income After Provision for Loan/Lease Losses 15,955 15,951 31,960 31,150
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NONINTEREST INCOME
Trust and investment services income 1,045 1,091 2,046 2,170
Service charges on deposit accounts 1,674 1,567 3,352 2,882
Insurance commissions and fees 1,332 1,256 2,603 2,433
Other service charges 1,438 1,259 2,768 2,358
Increase in cash surrender value of corporate owned life 263 289 515 600
insurance
Gains on sale of loans 326 96 825 305
Other income 192 216 227 336
Net realized gain (loss) on available-for-sale securities 283 (20) 342 (20)
- -----------------------------------------------------------------------------------------------------------------
Total Noninterest Income 6,553 5,754 12,678 11,064
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NONINTEREST EXPENSES
Salary and wages 6,035 5,529 12,023 10,959
Pension and other employee benefits 1,722 1,399 3,555 2,973
Net occupancy expense of bank premises 789 724 1,685 1,459
Furniture and fixture expense 821 814 1,643 1,632
Amortization of intangible assets 183 226 373 464
Other operating expense 3,624 4,004 7,123 7,836
- -----------------------------------------------------------------------------------------------------------------
Total Noninterest Expenses 13,174 12,696 26,402 25,323
- -----------------------------------------------------------------------------------------------------------------
Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 9,334 9,009 18,236 16,891
- -----------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 34 34 67 67
Income Tax Expense 3,111 3,053 6,095 5,697
- -----------------------------------------------------------------------------------------------------------------
Net Income $ 6,189 $ 5,922 $ 12,074 $ 11,127
=================================================================================================================
Basic Earnings Per Share $ 0.76 $ 0.73 $ 1.48 $ 1.36
Diluted Earnings Per Share $ 0.75 $ 0.71 $ 1.46 $ 1.34
=================================================================================================================
Per share data has been retroactively adjusted to reflect a 10% stock dividend
declared on July 22, 2003.
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
Quarter-Ended Year-Ended
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Jun-03 Mar-03 Dec-02 Sep-02 Jun-02 Dec-02
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Period End Balance Sheet (in thousands)
- ---------------------------------------
Securities $ 577,119 $ 620,444 $ 532,502 $ 527,717 $ 523,814 $ 532,502
Loans and leases, net of unearned income
and deferred costs and fees 1,043,843 1,004,471 995,346 950,766 927,863 995,346
Reserve for loan/lease losses 12,257 11,990 11,704 11,345 11,055 11,704
Total assets 1,786,238 1,763,857 1,670,203 1,639,879 1,586,178 1,670,203
Total deposits 1,362,279 1,355,892 1,340,285 1,313,387 1,270,185 1,340,285
Federal funds purchased and securities sold
under agreements to repurchase 149,186 120,386 77,843 74,133 69,752 77,843
Other borrowings 97,567 116,790 81,930 82,076 84,361 81,930
Shareholders' Equity 154,307 149,659 150,597 146,553 140,758 150,597
Average Balance Sheet (in thousands)
- ------------------------------------
Average assets $1,752,059 $1,701,291 $1,665,469 $1,609,206 $1,574,592 $1,583,503
Average equity 151,467 150,209 146,926 142,991 135,245 139,614
Share data (1)
- --------------
Weighted average shares outstanding (basic) 8,108,616 8,155,253 8,156,623 8,142,575 8,150,953 8,150,639
Weighted average shares outstanding (diluted) 8,242,956 8,285,413 8,326,017 8,320,355 8,299,216 8,308,587
Period-end shares outstanding 7,372,604 7,369,598 7,440,757 7,410,465 7,395,792 7,440,757
Book value per share $ 19.03 $ 18.46 $ 18.40 $ 17.98 $ 17.30 $ 18.40
Income Statement (in thousands, except per share data)
- ------------------------------------------------------
Net interest income $ 16,553 $ 16,544 $ 16,628 $ 16,551 $ 16,386 $ 65,141
Provision for loan/lease losses 598 540 738 686 435 2,235
Noninterest income 6,553 6,125 6,338 6,302 5,754 23,704
Noninterest expense 13,174 13,227 14,149 12,797 12,696 52,270
Minority interest in consolidated subsidiaries 34 33 33 34 34 134
Income tax expense 3,111 2,984 2,467 3,128 3,053 11,292
Net income 6,189 5,885 5,579 6,208 5,922 22,914
Basic earnings per share (1) $ 0.76 $ 0.72 $ 0.68 $ 0.76 $ 0.73 $ 2.81
Diluted earnings per share (1) $ 0.75 $ 0.71 $ 0.67 $ 0.75 $ 0.71 $ 2.75
Asset Quality (in thousands)
- ----------------------------
Net charge-offs $ 331 $ 254 $ 379 $ 396 $ 244 $ 1,237
Nonaccrual loans and leases 6,683 6,585 6,977 6,891 6,152 6,977
Loans and leases 90 days past due and accruing 457 317 368 40 40 368
Troubled debt restructurings not included above 250 252 179 180 180 179
Total nonperforming loans and leases 7,390 7,154 7,524 7,111 6,372 7,524
OREO 235 399 279 282 267 279
Nonperforming assets 7,625 7,553 7,803 7,393 6,639 7,803
(1) Shares (except period end shares outstanding) and per share data have been
retroactively adjusted to reflect a 10% stock dividend declared on July 22,
2003.
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
Quarter-Ended Year-Ended
---------------------------------------------------------------------------
Jun-03 Mar-03 Dec-02 Sep-02 Jun-02 Dec-02
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RATIO ANALYSIS
Credit Quality
- --------------
Net charge-offs/ average loans and leases* 0.13% 0.10% 0.16% 0.17% 0.11% 0.13%
Nonperforming loans and leases/loans and leases 0.72% 0.71% 0.76% 0.75% 0.69% 0.76%
Nonperforming assets/assets 0.43% 0.43% 0.47% 0.45% 0.42% 0.47%
Reserve/ nonperforming loans loans and leases 165.86% 167.60% 155.56% 159.54% 173.49% 155.56%
Reserve/loans and leases 1.17% 1.19% 1.18% 1.19% 1.19% 1.18%
Capital Adequacy (period-end)
- -----------------------------
Tier I capital / average assets 7.9% 7.9% 8.0% 8.1% 8.0% 8.0%
Total capital / risk-weighted assets 13.5% 13.5% 13.7% 13.8% 13.8% 13.7%
Profitability
- -------------
Return on average assets * 1.42% 1.40% 1.33% 1.53% 1.51% 1.45%
Return on average equity * 16.39% 15.89% 15.06% 17.22% 17.56% 16.41%
Net interest margin (TE) * 4.25% 4.45% 4.48% 4.61% 4.69% 4.64%
* Quarterly ratios have been annualized
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