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, October 26, 2005
Tompkins Trustco, Inc. third quarter earnings rise 4.8%
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported net income for the third quarter of 2005 of $7.1
million, up 4.8% from $6.8 million for the same period in 2004. Diluted earnings
per share of $0.78 for the third quarter of 2005, was up 4.0% from $0.75
reported in the third quarter of 2004. Net income for the nine months ended
September 30, 2005, was $20.5 million, an increase of 7.5% over the same period
in 2004. For the year-to-date, diluted earnings per share were $2.25 in 2005, up
7.7% over $2.09 in 2004.
Total assets were nearly $2.1 billion at September 30, 2005, up 5.5% over
September 30, 2004. Asset growth over the past twelve months included a $102.4
million increase in total loans and leases, which was partially offset by a
$16.6 million decline in the securities portfolio. Additional funding for asset
growth was largely driven by an $83.1 million increase in deposits.
James J. Byrnes, Chairman and CEO stated, "The 8.9% increase in total loans over
the past twelve months reflects the success of our employees in delivering on
our community banking strategy. We are especially pleased to achieve this growth
while seeing improving trends in asset quality." Both nonperforming assets and
net charge-offs declined in 2005 compared to 2004. Nonperforming loans of $4.3
million represented 0.34% of total loans at September 30, 2005, compared to
0.70% at September 30, 2004, while net charge-offs for the nine months ended
September 30, 2005 totaled $996,000 compared with $1.8 million for the same
period in 2004. The provision for loan/lease losses was $662,000 for the third
quarter of 2005, down from $749,000 a year earlier. For the nine-months ended
September 30, 2005, the provision for loan/lease losses was $1.8 million, down
from $2.3 million for the same period last year.
Total revenues (net interest income plus noninterest income) of $26.8 million
for the quarter and $78.4 million for the year-to-date reflect increases of 5.7%
and 6.0%, respectively over the same periods in 2004. Net interest income is the
largest component of revenue, representing 71.8% of total revenue for the nine
months ended 2005. Net interest income of $56.3 million for the first nine
months of 2005 was up 6.2% from the same period in 2004. The year-to-date net
interest margin for 2005 was 4.15%, up from 4.10% for the same period in 2004.
The year-to-date 2005 net interest margin benefited from a 9.8% increase in
average noninterest bearing deposits, from $292.1 million for the nine months
ended September 30, 2004 to $320.8 million for the nine months ended September
30, 2005.
For the third quarter of 2005, net interest income of $19.1 million reflected an
increase of 5.7% over the third quarter of 2004. The net interest margin was up
from the same quarter last year, but showed a slight decline when compared to
the second quarter of 2005. Quarterly net interest margin was 4.12% for the
quarter ended September 30, 2005; 4.15% for the quarter ended June 30, 2005; and
4.06% for the quarter ended September 30, 2004.
Noninterest income comprised 28.2% of revenue for the first nine months of 2005,
compared with 28.4% for the same period in 2004. For the year-to-date,
noninterest income was $22.1 million, an increase of 5.4% over the same period
in 2004. Year-to-date noninterest income includes $6.1 million in service
charges on deposit accounts (up 4.6%); $5.8 million in insurance commissions and
fees (up 18.9%); and $3.9 million in trust and investment services income (down
0.7%). For the third quarter, noninterest income of $7.7 million reflected an
increase of 5.6% from the third quarter of 2004, primarily in service charges on
deposit accounts and insurance commissions and fees.
Year-to-date noninterest expenses were $46.2 million in 2005, up 6.8% from the
first nine months of 2004. For the third quarter of 2005, noninterest expenses
were $15.6 million, up 8.5% over the same period in 2004. These increases were
primarily due to higher compensation and benefits related expenses, which were
up $662,000 for the quarter and $1.5 million for the year-to-date period. Other
factors contributing to the expense growth in the current year include: the
January 2005 acquisition of Banfield and Associates, Inc. (an Ithaca-based
insurance agency), the March 2005 opening of the Tompkins Financial Center in
Batavia, NY, and the first full year of expense associated with the Mt. Kisco
Office of Mahopac National Bank, which opened in July 2004. Mr. Byrnes noted,
"Although these investments resulted in increased costs in the current year, we
expect these initiatives to be important contributors to our future success".
Tompkins Trustco, Inc. operates 35 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 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 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.
Tompkins Trustco, Inc. - Condensed Consolidated Statements of Condition
(Unaudited)
(In thousands, except share data)
As of As of
ASSETS 09/30/2005 12/31/2004
------------ ------------
Cash and noninterest bearing balances due from banks $ 67,611 $ 39,911
Interest bearing balances due from banks 1,216 1,021
Available-for-sale securities, at fair value 584,388 591,071
Held-to-maturity securities, fair value of $80,687 at September 30, 2005,
and $70,526 at December 31, 2004 79,770 69,252
Loans and leases, net of unearned income and deferred costs and fees 1,247,890 1,172,148
Less: Reserve for loan/lease losses 13,384 12,549
- ---------------------------------------------------------------------------------------------------------------
Net Loans/Leases 1,234,506 1,159,599
Bank premises and equipment, net 34,876 33,118
Corporate owned life insurance 26,806 23,940
Goodwill 12,286 12,280
Other intangible assets 2,298 2,782
Accrued interest and other assets 36,986 37,321
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Total Assets $ 2,080,743 $ 1,970,295
===============================================================================================================
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 731,921 $ 784,850
Time 558,713 455,942
Noninterest bearing 331,328 320,081
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Total Deposits 1,621,962 1,560,873
Federal funds purchased and securities sold under agreements to repurchase 168,837 153,715
Other borrowings 79,849 63,303
Other liabilities 28,853 19,937
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Total Liabilities $ 1,899,501 $ 1,797,828
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Minority interest in consolidated subsidiaries 1,490 1,465
Shareholders' equity:
Common Stock - par value $.10 per share: Authorized 15,000,000 shares;
Issued: 8,993,754 at September 30, 2005; and 8,980,049 at December 31, 2004 899 816
Surplus 118,348 75,837
Undivided profits 64,704 94,522
Accumulated other comprehensive (loss) income (2,997) 871
Treasury stock, at cost - 52,058 shares at September 30, 2005,
and 48,719 shares at December 31, 2004 (1,202) (1,044)
- ---------------------------------------------------------------------------------------------------------------
Total Shareholders' Equity $ 179,752 $ 171,002
- ---------------------------------------------------------------------------------------------------------------
Total Liabilities, Minority Interest in Consolidated Subsidiaries
and Shareholders' Equity $ 2,080,743 $ 1,970,295
===============================================================================================================
Share data has been retroactively adjusted to reflect a 10% stock dividend paid
on February 15, 2005. See accompanying notes to unaudited condensed consolidated
financial statement
Tompkins Trustco, Inc. - Condensed Consolidated Statements of Income (Unaudited)
Three months ended Nine months ended
--------------------------- ---------------------------
(In thousands, except per share data) 09/30/2005 09/30/2004 09/30/2005 09/30/2004
------------ ------------ ------------ ------------
INTEREST AND DIVIDEND INCOME
Loans $ 20,901 $ 17,360 $ 59,309 $ 50,790
Balances due from banks 4 12 53 88
Federal funds sold 0 1 13 18
Available-for-sale securities 5,803 6,015 17,420 17,935
Held-to-maturity securities 648 488 1,787 1,378
- ------------------------------------------------------------------------------------------------------------------------------
Total Interest and Dividend Income 27,356 23,876 78,582 70,209
- ------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 1,724 785 4,415 2,061
Other deposits 4,398 3,012 11,876 9,025
Federal funds purchased and securities sold under agreements
to repurchase 1,320 1,080 3,588 3,262
Other borrowings 825 946 2,389 2,843
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Total Interest Expense 8,267 5,823 22,268 17,191
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Net Interest Income 19,089 18,053 56,314 53,018
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Less: Provision for loan/lease losses 662 749 1,831 2,274
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Net Interest Income After Provision for Loan/Lease Losses 18,427 17,304 54,483 50,744
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NONINTEREST INCOME
Trust and investment services income 1,242 1,274 3,911 3,938
Service charges on deposit accounts 2,234 2,074 6,138 5,869
Insurance commissions and fees 2,017 1,693 5,806 4,883
Card services income 663 646 1,931 1,835
Other service charges 793 813 2,248 2,457
Increase in cash surrender value of corporate owned life insurance 270 225 786 807
Gains on sale of loans 47 66 168 185
Other income 441 513 1,111 939
Net realized gain (loss) on available-for-sale securities 0 (8) 19 70
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Total Noninterest Income 7,707 7,296 22,118 20,983
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NONINTEREST EXPENSES
Salary and wages 7,183 6,702 21,114 19,966
Pension and other employee benefits 1,873 1,692 5,741 5,345
Net occupancy expense of bank premises 984 881 3,042 2,756
Furniture and fixture expense 894 859 2,694 2,557
Marketing expense 549 503 1,686 1,473
Professional fees 531 539 1,202 1,115
Software licenses and maintenance 433 308 1,339 1,010
Cardholder expense 357 341 1,021 976
Amortization of intangible assets 140 154 455 502
Other operating expense 2,661 2,408 7,867 7,536
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Total Noninterest Expenses 15,605 14,387 46,161 43,236
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 10,529 10,213 30,440 28,491
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Minority interest in consolidated subsidiaries 33 34 98 101
Income Tax Expense 3,386 3,395 9,871 9,355
==============================================================================================================================
Net Income $ 7,110 $ 6,784 $ 20,471 $ 19,035
==============================================================================================================================
Basic Earnings Per Share $ 0.79 $ 0.76 $ 2.29 $ 2.12
==============================================================================================================================
Diluted Earnings Per Share $ 0.78 $ 0.75 $ 2.25 $ 2.09
==============================================================================================================================
Per share data has been retroactively adjusted to reflect a 10% stock dividend
paid on February 15, 2005. See accompanying notes to unaudited condensed
consolidated financial statements.
Tompkins Trustco, Inc. - Summary of Financial Data (Unaudited)
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(In thousands, except per share data) Quarter-Ended Year-Ended
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Sept-05 Jun-05 Mar-05 Dec-04 Sept-04 Dec-04
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Period End Balance Sheet
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Securities $ 664,158 $ 667,089 $ 665,695 $ 660,323 $ 680,803 $ 660,323
- -------------------------------------------------------------------------------------------------------------------------------
Loans and leases, net of unearned income
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and deferred costs and fees 1,247,890 1,222,801 1,193,530 1,172,148 1,145,522 1,172,148
- -------------------------------------------------------------------------------------------------------------------------------
Reserve for loan/lease losses 13,384 12,985 12,920 12,549 12,175 12,549
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Total assets 2,080,743 2,042,404 2,005,700 1,970,295 1,972,281 1,970,295
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Total deposits 1,621,962 1,590,092 1,606,200 1,560,873 1,538,833 1,560,873
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Federal funds purchased and securities sold
under agreements to repurchase 168,837 166,923 141,506 153,715 163,731 153,715
- -------------------------------------------------------------------------------------------------------------------------------
Other borrowings 79,849 84,435 67,019 63,303 77,487 63,303
- -------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 179,752 176,438 169,516 171,002 168,214 171,002
- -------------------------------------------------------------------------------------------------------------------------------
Average Balance Sheet
- -------------------------------------------------------------------------------------------------------------------------------
Average earning assets $1,906,969 $1,886,210 $1,854,432 $1,827,525 $1,827,002 $1,801,145
- -------------------------------------------------------------------------------------------------------------------------------
Average assets 2,049,262 2,027,802 1,996,702 1,966,811 1,959,426 1,939,223
- -------------------------------------------------------------------------------------------------------------------------------
Average interest-bearing liabilities 1,514,008 1,514,026 1,491,678 1,457,028 1,466,225 1,455,729
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Average equity 176,862 172,434 171,768 169,816 161,065 163,354
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Share data
- -------------------------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding (basic) 8,956,846 8,950,979 8,953,452 8,935,339 8,933,029 8,956,013
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Weighted average shares outstanding (diluted) 9,091,655 9,068,242 9,104,914 9,091,237 9,065,818 9,102,627
- -------------------------------------------------------------------------------------------------------------------------------
Period-end shares outstanding 8,964,075 8,950,710 8,956,468 8,950,370 8,929,999 8,950,370
- -------------------------------------------------------------------------------------------------------------------------------
Book value per share $ 20.05 $ 19.71 $ 18.93 $ 19.11 $ 18.84 $ 19.11
- -------------------------------------------------------------------------------------------------------------------------------
Income Statement
- -------------------------------------------------------------------------------------------------------------------------------
Net interest income $ 19,089 $ 18,801 $ 18,423 $ 18,328 $ 18,053 $ 71,346
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Provision for loan/lease losses 662 716 452 587 749 2,860
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest income 7,707 7,627 6,785 7,000 7,296 27,983
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest expense 15,605 15,338 15,218 14,991 14,387 58,228
- -------------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 33 33 33 31 34 133
- -------------------------------------------------------------------------------------------------------------------------------
Income tax expense 3,386 3,393 3,092 3,138 3,395 12,493
- -------------------------------------------------------------------------------------------------------------------------------
Net income 7,110 6,948 6,413 6,581 6,784 25,615
- -------------------------------------------------------------------------------------------------------------------------------
Basic earnings per share $ 0.79 $ 0.78 $ 0.72 $ 0.74 $ 0.76 $ 2.86
- -------------------------------------------------------------------------------------------------------------------------------
Diluted earnings per share $ 0.78 $ 0.77 $ 0.70 $ 0.72 $ 0.75 $ 2.81
- -------------------------------------------------------------------------------------------------------------------------------
Asset Quality
- -------------------------------------------------------------------------------------------------------------------------------
Net charge-offs $ 264 $ 651 $ 81 $ 212 $ 674 $ 1,996
- -------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans and leases 4,203 5,290 6,000 7,392 7,797 7,392
- -------------------------------------------------------------------------------------------------------------------------------
Loans and leases 90 days past due and accruing 100 570 6 31 25 31
- -------------------------------------------------------------------------------------------------------------------------------
Troubled debt restructurings not included above 0 50 185 189 190 189
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Total nonperforming loans and leases 4,303 5,910 6,191 7,612 8,012 7,612
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OREO 96 202 359 89 104 89
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Nonperforming assets 4,399 6,112 6,550 7,701 8,116 7,701
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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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Sept-05 Jun-05 Mar-05 Dec-04 Sept-04 Dec-04
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Credit Quality
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Net loan and lease losses/average loans
and leases * 0.08% 0.22% 0.03% 0.07% 0.24% 0.18%
- -------------------------------------------------------------------------------------------------------------------------------
Nonperforming loans and leases/loans and leases 0.34% 0.48% 0.52% 0.65% 0.70% 0.65%
- -------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets/assets 0.21% 0.30% 0.33% 0.39% 0.41% 0.39%
- -------------------------------------------------------------------------------------------------------------------------------
Reserve/ nonperforming loans and leases 311.04% 219.71% 208.69% 164.86% 151.96% 164.86%
- -------------------------------------------------------------------------------------------------------------------------------
Reserve/loans and leases 1.07% 1.06% 1.08% 1.07% 1.06% 1.07%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.4% 8.2% 8.2% 8.1% 7.9% 8.1%
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Total capital / risk-weighted assets 13.9% 13.6% 13.6% 13.4% 13.4% 13.4%
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Profitability
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Return on average assets * 1.38% 1.37% 1.30% 1.33% 1.38% 1.32%
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Return on average equity * 15.95% 16.16% 15.14% 15.41% 16.76% 15.68%
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Net interest margin (TE) * 4.12% 4.15% 4.18% 4.14% 4.06% 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.