Exhibit 99.1
[GRAPHIC OMITTED]
TOMPKINS
TRUSTCO INC.
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
Tuesday, July 26, 2005
Tompkins Trustco, Inc. second quarter net income up 13.9%
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported net income of $6.9 million for the second
quarter of 2005, an increase of 13.9% over net income of $6.1 million reported
in the same quarter of 2004. Diluted earnings per share of $0.77 for the second
quarter of 2005 represents a 14.9% increase over the $0.67 reported in the
second quarter of 2004.
For the year-to-date, diluted earnings per share were $1.47 in 2005, up 9.7%
over the first six months of 2004. Net income for the six months ended June 30,
2005, was $13.4 million, an increase of 9.1% over the same period in 2004.
Chairman and CEO, James J. Byrnes commented, "Net income for the quarter
benefited from growth in net interest income, noninterest income, as well as a
lower provision for loan and lease losses. It has been rewarding to realize
growth in our key business areas while maintaining our high standards for asset
quality."
An improved net interest margin coupled with growth in earning assets resulted
in a 6.8% increase in net interest income for the second quarter of 2005, when
compared to the same period in 2004. Net interest margin for the second quarter
improved from 4.08% in June 2004 to 4.15% in June 2005. Average earning assets
for the second quarter of 2005 increased $91.2 million, or 5.1% over the same
period in 2004. The majority of this growth came from loans, which totaled $1.2
billion at June 30, 2005, a 9.0% increase from June 30, 2004. For the
year-to-date period, net interest income was up 6.5%, while the net interest
margin improved to 4.16% for the first six months of 2005, up from 4.11% for the
first six months of 2004.
Asset quality improved during the period. Nonperforming assets, which include
nonaccrual loans, loans 90 days past due and still accruing, troubled debt
restructurings, and other real estate owned, were $6.1 million at June 30, 2005,
compared to $8.6 million at June 30, 2004. As a percentage of total assets, the
level of nonperforming assets declined from 0.44% at June 30 2004, to 0.30% at
June 30, 2005. Improvement in asset quality trends, along with a lower level of
net charge-offs, resulted in a lower provision expense for both the year-to-date
and quarter-to-date periods.
Deposit growth continues to provide funding for growth in earning assets. Total
deposits at June 30, 2005 were $1.6 billion, an increase of nearly $100 million
from the same period last year. The Company also uses wholesale funding such as
borrowings and securities sold under agreements to repurchase to support asset
growth. At June 30, 2005, these wholesale funding sources amounted to $251.4
million, down from $262.4 million at June 30, 2004.
Noninterest income for the second quarter of 2005 was $7.6 million, an increase
of 12.1% from the same period in 2004. Noninterest income for the first six
months of 2005 was $14.4 million, up 5.3% from the first six months of 2004.
Insurance commissions and fees were $1.9 million in the second quarter of 2005,
up 16.8% from the $1.7 million reported for the same period in 2004. Service
charges on deposit accounts in the second quarter of 2005 were relatively flat
when compared to the prior year at approximately $2.1 million. Trust and
investment services income for the second quarter was down slightly at $1.3
million. Other income for the quarter benefited from a $207,000 gain on the sale
of real estate. The sale related to the recent relocation of The Bank of
Castile's Warsaw, NY office to a newly renovated facility.
Noninterest expenses were $15.3 million for the second quarter, up 4.7% over the
same period in 2004. The increase in the second quarter of 2005 was primarily
due to higher compensation and benefits related expenses, which were up
$396,000, or 4.6% when compared to the second quarter of 2004. Noninterest
expenses for the first six months of 2005 were $30.6 million, up 5.9% from the
first six months of 2004. Current period noninterest expenses were also impacted
by the addition of the Mount Kisco Office of Mahopac National Bank, which opened
in the third quarter of 2004, and the opening of Tompkins Financial Center in
Batavia, New York in the first quarter of 2005.
Mr. Byrnes commented, "We are proud to see our longer-term results recognized in
the 15th edition of the Americas Finest Companies(R) published by the Staton
Institute, Inc. Tompkins was included on the lists of Earnings All-Stars,
Dividend All-Stars, and America's Smartest Companies(R). Tompkins is ranked
sixth on the list of public companies with most consecutive years of earnings
growth."
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 in Western and Central New York. Each Tompkins
subsidiary operates with a community focus, meeting the needs of the unique
communities served.
"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.
Consolidated Statements of Condition (Unaudited)
As of As of
ASSETS 06/30/2005 12/31/2004
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Cash and noninterest bearing balances due from banks $ 51,973 $ 39,911
Interest bearing balances due from banks 1,067 1,021
Available-for-sale securities, at fair value 592,119 591,071
Held-to-maturity securities, fair value of $76,023 at June 30, 2005,
and $70,526 at December 31, 2004 74,970 69,252
Loans and leases, net of unearned income and deferred costs and fees 1,222,801 1,172,148
Less: Reserve for loan/lease losses 12,985 12,549
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Net Loans/Leases 1,209,816 1,159,599
Bank premises and equipment, net 34,439 33,118
Corporate owned life insurance 26,536 23,940
Goodwill 12,286 12,280
Other intangible assets 2,451 2,782
Accrued interest and other assets 36,747 37,321
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Total Assets $ 2,042,404 $ 1,970,295
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LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 715,009 $ 784,850
Time 537,179 455,942
Noninterest bearing 337,904 320,081
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Total Deposits 1,590,092 1,560,873
Federal funds purchased and securities sold under agreements to repurchase 166,923 153,715
Other borrowings 84,435 63,303
Other liabilities 23,059 19,937
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Total Liabilities $ 1,864,509 $ 1,797,828
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Minority interest in consolidated subsidiaries 1,457 1,465
Shareholders' equity:
Common Stock - par value $.10 per share: Authorized 15,000,000 shares;
Issued: 8,980,389 at June 30, 2005; and 8,980,049 at December 31, 2004 898 816
Surplus 117,991 75,837
Undivided profits 60,281 94,522
Accumulated other comprehensive (loss) income (1,592) 871
Treasury stock, at cost - 50,697 shares at June 30, 2005,
and 48,719 shares at December 31, 2004 (1,140) (1,044)
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Total Shareholders' Equity $ 176,438 $ 171,002
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Total Liabilities, Minority Interest in Consolidated Subsidiaries
and Shareholders' Equity $ 2,042,404 $ 1,970,295
==================================================================================================================
Share data has been retroactively adjusted to reflect a 10% stock dividend paid
on February 15, 2005.
Consolidated Statements of Income (Unaudited)
(In thousands, except per share data) Three months ended Six months ended
06/30/2005 06/30/2004 06/30/2005 06/30/2004
---------- ---------- ---------- ----------
INTEREST AND DIVIDEND INCOME
Loans $ 19,749 $ 16,842 $ 38,409 $ 33,430
Balances due from banks 6 28 48 76
Federal funds sold 2 5 13 17
Available-for-sale securities 5,908 5,973 11,618 11,920
Held-to-maturity securities 595 454 1,138 890
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Total Interest and Dividend Income 26,260 23,302 51,226 46,333
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INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 1,492 659 2,691 1,276
Other deposits 3,928 3,008 7,478 6,013
Federal funds purchased and securities sold under agreements
to repurchase 1,204 1,091 2,269 2,182
Other borrowings 835 934 1,564 1,897
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Total Interest Expense 7,459 5,692 14,002 11,368
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Net Interest Income 18,801 17,610 37,224 34,965
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Less: Provision for loan/lease losses 716 736 1,168 1,525
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Net Interest Income After Provision for Loan/Lease Losses 18,085 16,874 36,056 33,440
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NONINTEREST INCOME
Trust and investment services income 1,312 1,338 2,670 2,664
Service charges on deposit accounts 2,055 1,948 3,904 3,795
Insurance commissions and fees 1,935 1,657 3,789 3,191
Card services income 665 631 1,268 1,189
Other service charges 802 741 1,456 1,644
Increase in cash surrender value of corporate owned life insurance 264 280 516 582
Gains (losses) on sale of loans 78 (3) 120 119
Other income 503 191 670 425
Net realized gain on available-for-sale securities 13 19 19 78
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Total Noninterest Income 7,627 6,802 14,412 13,687
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NONINTEREST EXPENSES
Salary and wages 7,124 6,790 13,931 13,264
Pension and other employee benefits 1,844 1,782 3,868 3,653
Net occupancy expense of bank premises 1,013 920 2,058 1,874
Furniture and fixture expense 896 820 1,800 1,699
Marketing expense 590 573 1,137 970
Professional fees 346 269 671 575
Software licenses and maintenance 473 359 906 701
Cardholder expense 338 356 663 635
Amortization of intangible assets 153 170 315 348
Other operating expense 2,561 2,608 5,207 5,131
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Total Noninterest Expenses 15,338 14,647 30,556 28,850
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 10,374 9,029 19,912 18,277
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Minority interest in consolidated subsidiaries 33 34 66 67
Income Tax Expense 3,393 2,893 6,485 5,960
===================================================================================================================
Net Income $ 6,948 $ 6,102 $ 13,361 $ 12,250
===================================================================================================================
Basic Earnings Per Share $ 0.78 $ 0.68 $ 1.49 $ 1.36
===================================================================================================================
Diluted Earnings Per Share $ 0.77 $ 0.67 $ 1.47 $ 1.34
===================================================================================================================
Per share data has been retroactively adjusted to reflect a 10% stock dividend
paid on February 15, 2005.
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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Jun-05 Mar-05 Dec-04 Sept-04 Jun-04 Dec-04
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Period End Balance Sheet
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Securities $ 667,089 $ 665,695 $ 660,323 $ 680,803 $ 663,893 $ 660,323
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Loans and leases, net of unearned income
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and deferred costs and fees 1,222,801 1,193,530 1,172,148 1,145,522 1,121,987 1,172,148
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Reserve for loan/lease losses 12,985 12,920 12,549 12,175 12,100 12,549
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Total assets 2,042,404 2,005,700 1,970,295 1,972,281 1,929,360 1,970,295
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Total deposits 1,590,092 1,606,200 1,560,873 1,538,833 1,490,575 1,560,873
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Federal funds purchased and securities sold
under agreements to repurchase 166,923 141,506 153,715 163,731 189,350 153,715
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Other borrowings 84,435 67,019 63,303 77,487 73,052 63,303
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Shareholders' Equity 176,438 169,516 171,002 168,214 157,163 171,002
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Average Balance Sheet
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Average earning assets $1,886,210 $1,854,432 $1,827,525 $1,827,002 $1,794,994 $1,801,145
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Average assets 2,027,802 1,996,702 1,966,811 1,959,426 1,929,317 1,939,223
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Average interest-bearing liabilities 1,514,026 1,491,678 1,457,028 1,466,225 1,462,536 1,455,729
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Average equity 172,434 171,768 169,816 161,065 160,891 163,354
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Share data
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Weighted average shares outstanding (basic) 8,950,979 8,953,452 8,935,339 8,933,029 8,977,152 8,956,013
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Weighted average shares outstanding (diluted) 9,068,242 9,104,914 9,091,237 9,065,818 9,119,614 9,102,627
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Period-end shares outstanding 8,950,710 8,956,468 8,950,370 8,929,999 8,952,390 8,950,370
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Book value per share $ 19.71 $ 18.93 $ 19.11 $ 18.84 $ 17.56 $ 19.11
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Income Statement
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Net interest income $ 18,801 $ 18,423 $ 18,328 $ 18,053 $ 17,610 $ 71,346
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Provision for loan/lease losses 716 452 587 749 736 2,860
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Noninterest income 7,627 6,785 7,000 7,296 6,802 27,983
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Noninterest expense 15,338 15,218 14,991 14,387 14,647 58,228
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Minority interest in consolidated subsidiaries 33 33 31 34 34 133
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Income tax expense 3,393 3,092 3,138 3,395 2,893 12,493
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Net income 6,948 6,413 6,581 6,784 6,102 25,615
- -------------------------------------------------------------------------------------------------------------------------------
Basic earnings per share $ 0.78 $ 0.72 $ 0.74 $ 0.76 $ 0.68 $ 2.86
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Diluted earnings per share $ 0.77 $ 0.70 $ 0.72 $ 0.75 $ 0.67 $ 2.81
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Asset Quality
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Net charge-offs $ 651 $ 81 $ 212 $ 674 $ 737 $ 1,996
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Nonaccrual loans and leases 5,290 6,000 7,392 7,797 8,177 7,392
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Loans and leases 90 days past due and accruing 570 6 31 25 22 31
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Troubled debt restructurings not included above 50 185 189 190 193 189
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Total nonperforming loans and leases 5,910 6,191 7,612 8,012 8,392 7,612
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OREO 202 359 89 104 167 89
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Nonperforming assets 6,112 6,550 7,701 8,116 8,559 7,701
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Jun-05 Mar-05 Dec-04 Sep-04 Jun-04 Dec-04
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.22% 0.03% 0.07% 0.24% 0.27% 0.18%
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Nonperforming loans and leases/loans and leases 0.48% 0.52% 0.65% 0.70% 0.75% 0.65%
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Nonperforming assets/assets 0.30% 0.33% 0.39% 0.41% 0.44% 0.39%
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Reserve/ nonperforming loans and leases 219.71% 208.69% 164.86% 151.96% 144.18% 164.86%
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Reserve/loans and leases 1.06% 1.08% 1.07% 1.06% 1.08% 1.07%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.2% 8.2% 8.1% 7.9% 7.9% 8.1%
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Total capital / risk-weighted assets 13.6% 13.6% 13.4% 13.4% 13.3% 13.4%
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Profitability
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Return on average assets * 1.37% 1.30% 1.33% 1.38% 1.27% 1.32%
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Return on average equity * 16.16% 15.14% 15.41% 16.76% 15.25% 15.68%
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Net interest margin (TE) * 4.15% 4.18% 4.14% 4.06% 4.08% 4.11%
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* Quarterly ratios have been annualized
Share and per share data have been retroactively adjusted to reflect a 10% stock
dividend paid on February 15, 2005.