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
Wednesday, January 25, 2006
Tompkins Trustco, Inc. 2005 earnings up 8.1%
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported net income for the year ended December 31, 2005,
of $27.7 million, an increase of 8.1% over 2004. For the year-to-date, diluted
earnings per share were $3.05 in 2005, up 8.5% over $2.81 in 2004. Net income of
$7.2 million for the fourth quarter of 2005 increased 9.6%, up from $6.6 million
for the same period in 2004. Diluted earnings per share of $0.79 for the fourth
quarter of 2005, were up 9.7% from $0.72 reported in the fourth quarter of 2004.
James J. Byrnes, Chairman and CEO stated, "We are pleased to report on our
successful operating results for 2005. Business growth helped our results
throughout 2005. Our fourth quarter earnings were also bolstered by our recent
agreement with NOVA Information Systems (NOVA) to transfer customer service,
processing services, and support operations for all merchant card processing
customers. The agreement calls for NOVA to receive all future revenue from the
Company's current merchant customers, and resulted in a pre-tax net gain of
approximately $3.0 million in the fourth quarter. We will continue to generate
referral fees and income based on a percentage of net sales revenue from new
customers referred to NOVA."
Mr. Byrnes further commented, "The gain related to our transfer of merchant card
activities to NOVA was partially offset by securities losses from a securities
portfolio restructuring that included the sale of approximately $80 million of
available-for-sale securities in the fourth quarter of 2005. The sale resulted
in approximately $1.5 million in pretax securities losses being realized during
the fourth quarter of 2005. Proceeds from the sale have been primarily used to
acquire higher-yielding securities and we expect the transaction to have a
positive impact on interest income in future periods."
Total revenues (net interest income plus noninterest income) were $27.4 million
for the quarter, including the $3.0 million gain related to the merchant
processing agreement and the $1.5 million realized loss on the sale of
securities. This represents a $2.1 million increase (8.1%) over revenue of $25.3
million in the fourth quarter of 2004. For the full year, revenue was $105.8
million, compared to $99.3 million in 2004.
Net interest income is the largest component of revenue, representing 70.9% of
total revenue for the year ended 2005. Net interest income of $75.0 million for
the year ended December 31, 2005, was up 5.2% from the same period in 2004. The
net interest margin for 2005 was 4.11%, unchanged from 4.11% for the year 2004.
The 2005 net interest margin benefited from an 8.8% increase in average
noninterest bearing deposits, from $297.7 million for the year ended December
31, 2004 to $324.0 million for the year ended December 31, 2005.
For the fourth quarter of 2005, net interest income of $18.7 million reflected
an increase of 2.1% over the fourth quarter of 2004. The net interest margin of
3.99% for the fourth quarter of 2005 was down from 4.14% for the same quarter
last year and the 4.12% for third quarter of 2005. This was due primarily to
rising short-term rates during the year.
Noninterest income comprised 29.1% of revenue for the year ended December 31,
2005, compared with 28.2% for the same period in 2004. Noninterest income was
$30.8 million for the full year ended December 31, 2005, an increase of 10.0%
over 2004. For the fourth quarter, noninterest income of $8.7 million increased
23.8% from the fourth quarter of 2004. As previously mentioned, noninterest
income for the full year and the fourth quarter of 2005 benefited from the
merchant processing agreement, partly offset by realized losses on the sale of
securities. Year-to-date key noninterest income categories included: $8.3
million in service charges on deposit accounts (up 3.4%); $7.5 million in
insurance commissions and fees (up 17.3%); and $5.3 million in trust and
investment services income (up 1.5%).
"As we move into 2006," Mr. Byrnes remarked, "we are very positive about the
opportunity to expand our fee based service capabilities with the addition in
January 2006 of AM&M Financial Services, Inc. AM&M is a premier fee-based
financial planning firm located in the Western New York that will be a great
complement to our Tompkins Investment Services Division by adding product
capabilities and financial planning expertise. The location of the AM&M offices
is also attractive and will enhance Tompkins' presence in Monroe County, where
our Bank of Castile subsidiary currently has one office in the Town of Chili and
recently broke ground for a new office in the Town of Greece."
Year-to-date noninterest expenses were $62.1 million in 2005, up 6.7% from the
same period in 2004. For the fourth quarter of 2005, noninterest expenses were
$16.0 million, up 6.5% over the same period in 2004. These increases were
primarily due to higher compensation and benefits related expenses, which were
up $617,000 for the quarter and $2.2 million for the year-to-date period. Mr.
Byrnes noted, "We continue to invest in our future through acquisitions and
through the addition of new offices. These investments have contributed to our
expense growth in 2005." Costs related to compliance with Section 404 of the
Sarbanes-Oxley Act were down in 2005 in comparison to 2004. External costs for
professional services related to the implementation and compliance with Section
404 of the Sarbanes-Oxley Act were $633,000 in 2004, whereas ongoing compliance
costs in 2005 included the addition of one staff position and $185,000 in costs
related to external professional services.
Total assets were $2.1 billion at December 31, 2005, up 6.9% over December 31,
2004. Asset growth over the past twelve months included a $99.2 million increase
in total loans and leases; the securities portfolio was relatively unchanged
(down $1.4 million). Asset quality remains strong. Both nonperforming assets and
net charge-offs declined in 2005 when compared to the prior year. Nonperforming
loans of $4.1 million represented 0.33% of total loans at December 31, 2005,
compared to 0.65% at December 31, 2004, while net charge-offs for the year ended
December 31, 2005 totaled $1.5 million compared with $2.0 million for the same
period in 2004.
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 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 12/31/2005 12/31/2004
------------ ------------
Cash and noninterest bearing balances due from banks $ 62,436 $ 39,911
Interest bearing balances due from banks 861 1,021
Federal funds sold 2,500 0
Available-for-sale securities, at fair value 576,242 591,071
Held-to-maturity securities, fair value of $82,768 at December 31, 2005,
and $70,526 at December 31, 2004 82,658 69,252
Loans and leases, net of unearned income and deferred costs and fees 1,271,349 1,172,148
Less: Reserve for loan/lease losses 13,677 12,549
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Net Loans/Leases 1,257,672 1,159,599
Bank premises and equipment, net 36,938 33,118
Corporate owned life insurance 27,169 23,940
Goodwill 12,286 12,280
Other intangible assets 2,160 2,782
Accrued interest and other assets 45,948 37,321
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Total Assets $ 2,106,870 $ 1,970,295
=====================================================================================================================
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 688,521 $ 784,850
Time 634,607 455,942
Noninterest bearing 359,882 320,081
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Total Deposits 1,683,010 1,560,873
Federal funds purchased and securities sold under agreements to repurchase 152,651 153,715
Other borrowings 63,673 63,303
Other liabilities 24,863 19,937
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Total Liabilities $ 1,924,197 $ 1,797,828
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Minority interest in consolidated subsidiaries 1,452 1,465
Shareholders' equity:
Common Stock - par value $.10 per share: Authorized 15,000,000 shares;
Issued: 8,999,587 at December 31, 2005; and 8,980,049 at December 31, 2004 900 816
Surplus 118,663 75,837
Undivided profits 69,228 94,522
Accumulated other comprehensive (loss) income (6,308) 871
Treasury stock, at cost, 53,483 shares at December 31, 2005,
and 48,719 shares at December 31, 2004 (1,262) (1,044)
- ---------------------------------------------------------------------------------------------------------------------
Total Shareholders' Equity $ 181,221 $ 171,002
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Total Liabilities, Minority Interest in Consolidated Subsidiaries
and Shareholders' Equity $ 2,106,870 $ 1,970,295
=====================================================================================================================
Share data has been retroactively adjusted to reflect a 10% stock dividend paid
on February 15, 2005.
Tompkins Trustco, Inc. - Condensed Consolidated Statements of Income (Unaudited)
Three months ended Twelve months ended
(In thousands, except per share data) 12/31/2005 12/31/2004 12/31/2005 12/31/2004
------------ ------------ ------------ ------------
INTEREST AND DIVIDEND INCOME
Loans $ 21,308 $ 18,146 $ 80,617 $ 68,935
Balances due from banks 37 4 89 93
Federal funds sold 12 8 24 25
Available-for-sale securities 6,070 5,784 23,491 23,720
Held-to-maturity securities 699 521 2,486 1,900
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Total Interest and Dividend Income 28,126 24,463 106,707 94,673
- ----------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 2,559 828 6,973 2,890
Other deposits 4,813 3,310 16,690 12,334
Federal funds purchased and securities sold under agreements
to repurchase 1,264 1,127 4,852 4,390
Other borrowings 782 870 3,171 3,713
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Total Interest Expense 9,418 6,135 31,686 23,327
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Net Interest Income 18,708 18,328 75,021 71,346
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Less: Provision for loan/lease losses 829 587 2,659 2,860
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Net Interest Income After Provision for Loan/Lease Losses 17,879 17,741 72,362 68,486
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NONINTEREST INCOME
Service charges on deposit accounts 2,118 2,118 8,256 7,987
Insurance commissions and fees 1,673 1,491 7,479 6,374
Trust and investment services income 1,377 1,274 5,289 5,212
Gain on sale of merchant card business 2,971 0 2,971 0
Card services income 714 636 2,645 2,471
Other service charges 712 744 2,961 3,202
Increase in cash surrender value of corporate owned life insurance 310 388 1,097 1,195
Gains on sale of loans 71 55 238 240
Other income 263 265 1,373 1,204
Net realized (loss) gain on available-for-sale securities (1,545) 29 (1,526) 98
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Total Noninterest Income 8,664 7,000 30,783 27,983
- ----------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSES
Salary and wages 7,192 6,900 28,306 26,866
Pension and other employee benefits 2,095 1,769 7,837 7,115
Net occupancy expense of bank premises 1,044 945 4,086 3,700
Furniture and fixture expense 934 887 3,628 3,445
Marketing expense 519 426 2,205 1,899
Professional fees 278 549 1,480 1,664
Software licenses and maintenance 437 442 1,776 1,451
Cardholder expense 329 320 1,350 1,296
Amortization of intangible assets 138 151 593 653
Other operating expense 2,995 2,602 10,861 10,139
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Total Noninterest Expenses 15,961 14,991 62,122 58,228
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 10,582 9,750 41,023 38,241
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Minority interest in consolidated subsidiaries 32 31 131 133
Income Tax Expense 3,336 3,138 13,207 12,493
============================================================================================================================
Net Income $ 7,214 $ 6,581 $ 27,685 $ 25,615
============================================================================================================================
Basic Earnings Per Share $ 0.80 $ 0.74 $ 3.09 $ 2.86
============================================================================================================================
Diluted Earnings Per Share $ 0.79 $ 0.72 $ 3.05 $ 2.81
============================================================================================================================
Tompkins Trustco, Inc. - Summary of Financial Data (Unaudited)
---------------------------------------------------------------------------
(In thousands, except per share data) Quarter-Ended Year-Ended
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Dec-05 Sept-05 Jun-05 Mar-05 Dec-04 Dec-05
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Period End Balance Sheet
- -------------------------------------------------------------------------------------------------------------------------------
Securities $ 658,900 $ 664,158 $ 667,089 $ 665,695 $ 660,323 $ 658,900
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Loans and leases, net of unearned income
- -------------------------------------------------------------------------------------------------------------------------------
and deferred costs and fees 1,271,349 1,247,890 1,222,801 1,193,530 1,172,148 1,271,349
- -------------------------------------------------------------------------------------------------------------------------------
Reserve for loan/lease losses 13,677 13,384 12,985 12,920 12,549 13,677
- -------------------------------------------------------------------------------------------------------------------------------
Total assets 2,106,870 2,080,743 2,042,404 2,005,700 1,970,295 2,106,870
- -------------------------------------------------------------------------------------------------------------------------------
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Total deposits 1,683,010 1,621,962 1,590,092 1,606,200 1,560,873 1,683,010
- -------------------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold
under agreements to repurchase 152,651 168,837 166,923 141,506 153,715 152,651
- -------------------------------------------------------------------------------------------------------------------------------
Other borrowings 63,673 79,849 84,435 67,019 63,303 63,673
- -------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 181,221 179,752 176,438 169,516 171,002 181,221
- -------------------------------------------------------------------------------------------------------------------------------
Average Balance Sheet
- -------------------------------------------------------------------------------------------------------------------------------
Average earning assets $1,936,167 $1,906,969 $1,886,210 $1,854,432 $1,827,525 $1,896,197
- -------------------------------------------------------------------------------------------------------------------------------
Average assets 2,077,383 2,049,262 2,027,802 1,996,702 1,966,811 2,038,040
- -------------------------------------------------------------------------------------------------------------------------------
Average interest-bearing liabilities 1,540,015 1,514,008 1,514,026 1,491,678 1,457,028 1,515,062
- -------------------------------------------------------------------------------------------------------------------------------
Average equity 178,781 176,862 172,434 171,768 169,816 174,986
- -------------------------------------------------------------------------------------------------------------------------------
Share data
- -------------------------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding (basic) 8,966,902 8,956,846 8,950,979 8,953,452 8,935,339 8,957,081
- -------------------------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding (diluted) 9,099,770 9,091,655 9,068,242 9,104,914 9,091,237 9,091,182
- -------------------------------------------------------------------------------------------------------------------------------
Period-end shares outstanding 8,969,908 8,964,075 8,950,710 8,956,468 8,950,370 8,969,908
- -------------------------------------------------------------------------------------------------------------------------------
Book value per share $ 20.20 $ 20.05 $ 19.71 $ 18.93 $ 19.11 $ 20.20
- -------------------------------------------------------------------------------------------------------------------------------
Income Statement
- -------------------------------------------------------------------------------------------------------------------------------
Net interest income $ 18,708 $ 19,089 $ 18,801 $ 18,423 $ 18,328 $ 75,021
- -------------------------------------------------------------------------------------------------------------------------------
Provision for loan/lease losses 829 662 716 452 587 2,659
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest income 8,664 7,707 7,627 6,785 7,000 30,783
- -------------------------------------------------------------------------------------------------------------------------------
Noninterest expense 15,961 15,605 15,338 15,218 14,991 62,122
- -------------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 32 33 33 33 31 131
- -------------------------------------------------------------------------------------------------------------------------------
Income tax expense 3,336 3,386 3,393 3,092 3,138 13,207
- -------------------------------------------------------------------------------------------------------------------------------
Net income 7,214 7,110 6,948 6,413 6,581 27,685
- -------------------------------------------------------------------------------------------------------------------------------
Basic earnings per share $ 0.80 $ 0.79 $ 0.78 $ 0.72 $ 0.74 $ 3.09
- -------------------------------------------------------------------------------------------------------------------------------
Diluted earnings per share $ 0.79 $ 0.78 $ 0.77 $ 0.70 $ 0.72 $ 3.05
- -------------------------------------------------------------------------------------------------------------------------------
Asset Quality
- -------------------------------------------------------------------------------------------------------------------------------
Net charge-offs $ 535 $ 264 $ 651 $ 81 $ 212 $ 1,531
- -------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans and leases 4,072 4,203 5,290 6,000 7,392 4,072
- -------------------------------------------------------------------------------------------------------------------------------
Loans and leases 90 days past due and accruing 12 100 570 6 31 12
- -------------------------------------------------------------------------------------------------------------------------------
Troubled debt restructurings not included above 50 0 50 185 189 50
- -------------------------------------------------------------------------------------------------------------------------------
Total nonperforming loans and leases 4,134 4,303 5,910 6,191 7,612 4,134
- -------------------------------------------------------------------------------------------------------------------------------
OREO 366 96 202 359 89 366
- -------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets 4,500 4,399 6,112 6,550 7,701 4,500
- -------------------------------------------------------------------------------------------------------------------------------
Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Dec-05 Sept-05 Jun-05 Mar-05 Dec-04 Dec-05
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.17% 0.08% 0.22% 0.03% 0.07% 0.13%
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Nonperforming loans and leases/loans and leases 0.33% 0.34% 0.48% 0.52% 0.65% 0.33%
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Nonperforming assets/assets 0.21% 0.21% 0.30% 0.33% 0.39% 0.21%
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Reserve/ nonperforming loans and leases 330.84% 311.04% 219.71% 208.69% 164.86% 330.84%
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Reserve/loans and leases 1.08% 1.07% 1.06% 1.08% 1.07% 1.08%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.5% 8.4% 8.2% 8.2% 8.1% 8.5%
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Total capital / risk-weighted assets 13.7% 13.7% 13.6% 13.6% 13.4% 13.8%
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Profitability
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Return on average assets * 1.38% 1.38% 1.37% 1.30% 1.33% 1.36%
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Return on average equity * 16.01% 15.95% 16.16% 15.14% 15.41% 15.82%
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Net interest margin (TE) * 3.99% 4.12% 4.15% 4.18% 4.14% 4.11%
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* Quarterly ratios have been annualized
Share data has been retroactively adjusted to reflect a 10% stock dividend paid
on February 15, 2005.