Exhibit 99.1
TOMPKINS
TRUSTCO INC.
[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, January 28, 2004
Tompkins Trustco, Inc. net income up 6.7% in fourth quarter and up 5.6% for the
year
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported net income of $6.0 million for the fourth
quarter of 2003, an increase of 6.7% over net income of $5.6 million reported in
the same quarter of 2002. Diluted earnings per share(1) of $0.72 for the fourth
quarter of 2003, reflected an increase of 7.5% from the $0.67 reported in the
fourth quarter of 2002.
For the full year, net income was $24.2 million, up 5.6% from the $22.9 million
reported in 2002. Diluted earnings per share for the year ended December 31,
2003 were $2.92, an increase of 5.8% over the $2.76 reported in 2002.
Net interest income of $17.4 million in the fourth quarter of 2003 reflected an
increase of 4.5% from the same period in 2002. Growth in earning assets was key
to improved net interest income, as the continued historically low interest rate
environment led to a decline in net interest margin from 4.48% in the fourth
quarter of 2002, to 4.18% in the fourth quarter of 2003. For the year ended
December 31, 2003, the net interest margin was 4.28%, compared to 4.64% in the
prior year.
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(1) Share and per share data included in this press release have been
retroactively adjusted to reflect a 10% stock dividend paid on August 15, 2003.
At December 31, 2003, total loans were $1.1 billion, an increase of 7.4% from
$995.3 million at December 31, 2002. The growth in loans is net of $52.6 million
in new loan originations that were sold during 2003, and $39.7 million in
residential mortgage loans that were securitized in the third quarter of this
year. The securitized loans were packaged into mortgage-backed securities, which
are now held in the Company's available-for-sale securities portfolio. This
securitization contributed to a 20.5% increase in securities, from $532.5
million at December 31, 2002, to $641.7 million at December 31, 2003.
Deposits remain the primary source of funding for earning assets. Total deposits
were $1.4 billion at December 31, 2003, up 5.3% from year-end 2002. Recent
additions to the Tompkins branch network have played an important role in
generating new deposit funding. Since June 2002 new office openings have
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. The Company also uses wholesale funding
sources, which include borrowings and securities sold under agreements to
repurchase, to support asset growth. These funding sources increased by $115.2
million during the year to a total of $275.0 million at year-end 2003.
Noninterest income for the fourth quarter of 2003 was $6.5 million, an increase
of 2.1% from the same period in 2002. Growth in noninterest income was moderated
by the fact that 2002 results included $309,000 in realized securities gains,
compared to $58,000 in realized securities losses during the same period in
2003. The growth trends for key fee generating business activities were strong
for the quarter. Service charges on deposit accounts were $2.0 million, up 15.0%
from the same quarter last year; trust and investment services income was $1.2
million for the quarter, up 10.7%; and insurance commissions and fees were $1.3
million, up 11.9%.
Noninterest expenses were $14.2 million for the fourth quarter, up 0.3% from the
same period in 2002. Current period comparison to the fourth quarter of 2002 is
favorably impacted by a $650,000 nonrecurring charge associated with a
revaluation of certain pension liabilities in the fourth quarter of 2002.
2
Largely as a result of this charge, pension and employee benefits expense
declined from $2.4 million in the fourth quarter of 2002, to $1.7 million in the
fourth quarter of 2003.
Nonperforming assets, which include nonaccrual loans, loans 90 days past due and
still accruing, troubled debt restructurings, and other real estate owned, were
$8.0 million at December 31, 2003, compared to $7.8 million at December 31,
2002. As a percentage of total assets, the level of nonperforming assets
declined from 0.47% at December 31, 2002, to 0.43% at December 31, 2003.
James J. Byrnes, Chairman and CEO stated, "The continued low interest rate
environment, and general weakness in the national economy made 2003 an
especially challenging year. To achieve these excellent results in this
environment is especially rewarding. We feel these results support our overall
business strategy, which revolves around a commitment to community banking and
to excellent service delivered with personalized attention."
Mr. Byrnes further stated, "I would like to note the resignation of Edward C.
Hooks from our Board of Directors, effective January 1, 2004. Mr. Hooks has
provided 14 years of distinguished service as a director of the Company, and his
service in that capacity will be greatly missed. We are pleased, however, that
he will continue to serve the Company in his capacity as general counsel."
Tompkins Trustco, Inc. operates 34 banking offices 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.
3
"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.
4
Consolidated Statements of Condition (Unaudited)
As of December 31
(in thousands except share and per share data) 2003 2002
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ASSETS
Cash and non-interest bearing balances due from banks $ 56,540 $ 53,898
Interest bearing balances due from banks 9,216 10,000
Federal funds sold 0 400
Available-for-sale securities, at fair value 592,137 493,780
Held-to-maturity securities, fair value of $51,441 at
December 31, 2003, and $40,260 at December 31, 2002 49,528 38,722
Loans and leases, net of unearned income and deferred costs and fees 1,069,140 995,346
Less reserve for loan/lease losses 11,685 11,704
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Net Loans/Leases 1,057,455 983,642
Bank premises and equipment, net 28,466 27,111
Corporate owned life insurance 22,843 21,382
Goodwill 11,541 10,684
Intangible assets 3,322 3,422
Accrued interest and other assets 33,398 27,162
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Total Assets $ 1,864,446 $ 1,670,203
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES,
AND SHAREHOLDERS' EQUITY
Deposits:
Interest-bearing:
Checking, savings, and money market $ 747,691 $ 710,753
Time 381,175 379,603
Noninterest-bearing 282,259 249,929
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Total Deposits 1,411,125 1,340,285
Securities sold under agreements to repurchase 187,908 77,843
Other borrowings 87,111 81,930
Other liabilities 17,843 18,059
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Total Liabilities 1,703,987 1,518,117
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Minority interest in consolidated subsidiaries 1,489 1,489
Shareholders' equity:
Common stock - par value $0.10 per share: Authorized 15,000,000 shares;
Issued 8,185,816 shares at December 31, 2003, and 8,211,815 shares at December 31, 2002 819 747
Surplus 76,926 45,997
Undivided profits 78,676 96,722
Accumulated other comprehensive income 3,015 7,597
Treasury stock at cost: 26,981 shares at December 31, 2003, and December 31, 2002 (466) (466)
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Total Shareholders' Equity $ 158,970 150,597
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Total Liabilities, Minority Interest in Consolidated Subsidiaries,
and Shareholders' Equity $ 1,864,446 $ 1,670,203
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Share data has been retroactively adjusted to reflect a 10% stock dividend paid
on August 15, 2003.
5
Consolidated Statements of Income (Unaudited)
Quarter to Date Year to Date
12/31/2003 12/31/2002 12/31/2003 12/31/2002
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INTEREST AND DIVIDEND INCOME
Loans $ 16,493 $ 17,485 $ 67,830 $ 68,383
Interest on balances due from banks 2 27 27 37
Federal funds sold 1 42 16 207
Available-for-sale securities 6,054 5,584 21,557 23,862
Held-to-maturity securities 411 386 1,565 1,470
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Total Interest and Dividend Income 22,961 23,524 90,995 93,959
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INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 617 797 2,782 3,233
Other deposits 3,038 4,454 13,361 18,934
Federal funds purchased and securities sold under agreements 965 564 3,285 2,448
to repurchase
Other borrowings 972 1,081 4,065 4,203
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Total Interest Expense 5,592 6,896 23,493 28,818
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Net Interest Income 17,369 16,628 67,502 65,141
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Less: Provision for loan/lease losses 774 738 2,497 2,235
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Net Interest Income After Provision for Loan/Lease Losses 16,595 15,890 65,005 62,906
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NONINTEREST INCOME
Trust and investment services income 1,188 1,073 4,325 4,174
Service charges on deposit accounts 2,004 1,742 7,220 6,324
Insurance commissions and fees 1,292 1,155 5,265 4,900
Card services income 538 530 2,273 2,111
Other service charges 701 762 3,043 2,918
Increase in cash surrender value of corporate owned life insurance 235 435 1,012 1,383
Gains on sale of loans 120 130 970 671
Other income 448 202 1,104 860
Net realized (loss) gain on available-for-sale securities (58) 309 43 363
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Total Noninterest Income 6,468 6,338 25,255 23,704
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NONINTEREST EXPENSES
Salary and wages 6,118 6,080 24,061 22,692
Pension and other employee benefits 1,706 2,446 6,903 6,827
Net occupancy expense of bank premises 891 782 3,413 3,021
Furniture and fixture expense 854 887 3,307 3,320
Marketing expense 554 360 1,944 1,797
Amortization of intangible assets 203 190 746 867
Other operating expense 3,872 3,404 13,483 13,746
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Total Noninterest Expenses 14,198 14,149 53,857 52,270
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 8,865 8,079 36,403 34,340
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Minority interest in consolidated subsidiaries 33 33 134 134
Income Tax Expense 2,877 2,467 12,064 11,292
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Net Income $ 5,955 $ 5,579 $ 24,205 $ 22,914
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Basic Earnings Per Share $ 0.73 $ 0.68 $ 2.98 $ 2.81
Diluted Earnings Per Share $ 0.72 $ 0.67 $ 2.92 $ 2.76
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Per share data has been retroactively adjusted to reflect a 10% stock dividend
paid on August 15, 2003.
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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(In thousands, except per share data) Quarter-Ended Year-Ended
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Dec-03 Sep-03 Jun-03 Mar-03 Dec-02 Dec-03
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Period End Balance Sheet
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Securities $ 641,665 $ 611,531 $ 577,119 $ 620,444 $ 532,502 $ 641,665
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Loans and leases, net of unearned income
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and deferred costs and fees 1,069,140 1,038,193 1,043,843 1,004,471 995,346 1,069,140
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Reserve for loan/lease losses 11,685 11,621 12,257 11,990 11,704 11,685
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Total assets 1,864,446 1,805,080 1,786,238 1,763,857 1,670,203 1,864,446
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Total deposits 1,411,125 1,404,233 1,362,279 1,355,892 1,340,285 1,411,125
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Federal funds purchased and securities sold
under agreements to repurchase 187,908 152,075 149,186 120,386 77,843 187,908
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Other borrowings 87,111 72,341 97,567 116,790 81,930 87,111
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Shareholders' Equity 158,970 153,716 154,307 149,659 150,597 158,970
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Average Balance Sheet
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Average assets $1,845,515 $1,778,448 $1,752,059 $1,701,291 $1,665,469 $1,769,748
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Average equity 155,466 151,855 151,467 150,209 146,926 152,263
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Share data
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Weighted average shares outstanding (basic) 8,145,403 8,112,827 8,108,616 8,155,253 8,156,623 8,130,449
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Weighted average shares outstanding (diluted) 8,305,584 8,270,598 8,242,956 8,285,413 8,326,017 8,276,062
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Period-end shares outstanding 8,158,835 8,121,652 8,109,864 8,106,558 8,184,834 8,158,835
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Book value per share $ 19.48 $ 18.93 $ 19.03 $ 18.46 $ 18.40 $ 19.48
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Income Statement
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Net interest income $ 17,369 $ 17,036 $ 16,553 $ 16,544 $ 16,628 $ 67,502
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Provision for loan/lease losses 774 585 598 540 738 2,497
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Noninterest income 6,468 6,109 6,553 6,125 6,338 25,255
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Noninterest expense 14,198 13,258 13,174 13,227 14,149 53,857
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Minority interest in consolidated subsidiaries 33 34 34 33 33 134
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Income tax expense 2,877 3,092 3,111 2,984 2,467 12,064
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Net income 5,955 6,176 6,189 5,885 5,579 24,205
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Basic earnings per share $ 0.73 $ 0.76 $ 0.76 $ 0.72 $ 0.68 $ 2.98
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Diluted earnings per share $ 0.72 $ 0.75 $ 0.75 $ 0.71 $ 0.67 $ 2.92
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Asset Quality
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Net charge-offs $ 710 $ 1,221 $ 331 $ 254 $ 379 $ 2,516
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Nonaccrual loans and leases 7,321 9,000 6,683 6,585 6,977 7,321
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Loans and leases 90 days past due and accruing 26 19 457 317 368 26
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Troubled debt restructurings not included above 246 250 250 252 179 246
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Total nonperforming loans and leases 7,593 9,269 7,390 7,154 7,524 7,593
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OREO 385 343 235 399 279 385
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Nonperforming assets 7,978 9,612 7,625 7,553 7,803 7,978
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Dec-03 Sep-03 Jun-03 Mar-03 Dec-02 Dec-03
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.27% 0.46% 0.13% 0.10% 0.16% 0.24%
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Nonperforming loans and leases/loans and leases 0.71% 0.89% 0.71% 0.71% 0.76% 0.71%
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Nonperforming assets/assets 0.43% 0.53% 0.43% 0.43% 0.47% 0.43%
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Reserve/ nonperforming loans loans and leases 153.89% 125.37% 165.86% 167.60% 155.56% 153.89%
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Reserve/loans and leases 1.09% 1.12% 1.17% 1.19% 1.18% 1.09%
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Capital Adequacy (period-end)
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Tier I capital / average assets 7.9% 8.0% 7.9% 7.9% 8.0% 7.9%
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Total capital / risk-weighted assets 13.4% 13.6% 13.5% 13.5% 13.7% 13.4%
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Profitability
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Return on average assets * 1.28% 1.38% 1.42% 1.40% 1.33% 1.37%
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Return on average equity * 15.20% 16.14% 16.39% 15.89% 15.06% 15.90%
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Net interest margin (TE) * 4.18% 4.26% 4.25% 4.45% 4.48% 4.28%
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* Quarterly ratios have been annualized
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