Exhibit 99.1
TOMPKINS [GRAPHIC OMITTED]
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, April 26, 2006
Tompkins Trustco, Inc. reports first quarter earnings
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported earnings for the first quarter of 2006 of $6.4
million unchanged from the same period in 2005. Diluted earnings per share(1)
were $0.63 for the quarter compared to $0.64 for the same period in 2005.
Chairman and CEO, James J. Byrnes commented, "The current flat yield curve
environment made the first quarter more challenging. Growth in loans and
deposits helped offset the effects of a declining net interest margin, as did
growth in fee income, which benefited from the recent acquisition of AM&M
Financial Services."
Net interest income of $18.7 million in the first quarter of 2006 increased 1.6%
from $18.4 million for the same period in 2005. Net interest margin declined
from 4.18% in the first quarter of 2005 to 4.02% in the first quarter of 2006.
The negative effects of the decline in margin were offset by 6.8% growth in
average loans and 6.0% growth in average deposits, over the first quarter of
2005.
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(1) Per share data included in this press release have been retroactively
adjusted to reflect a 10% stock dividend approved on April 25, 2006 and payable
on May 15, 2006, to shareholders of record on May 3, 2006.
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 $3.9 million at March 31,
2006, compared to $6.6 million a year ago. As a percentage of total assets, the
level of nonperforming assets declined from 0.33% at March 31, 2005, to 0.18% at
March 31, 2006.
Core deposits, defined as total deposits less time deposits of $100,000 or more,
brokered time deposits, and municipal money market deposits, continue to be the
primary funding source for growth in earnings assets, representing 63.5% of
total liabilities. Core deposits increased $42.3 million or 3.6% from March 31,
2005 to $1.2 billion at March 31, 2006. Growth in noninterest bearing deposits
was particularly strong over the period, increasing 13.9% to $342.7 million as
of March 31, 2006.
The Company also uses wholesale funding such as borrowings and securities sold
under agreements to repurchase, to support asset growth. At March 31, 2006,
these wholesale funding sources amounted to $220.2 million, an increase of 5.6%
from $208.5 million a year earlier.
The Company completed the acquisition of AM&M Financial Services, Inc. during
the quarter, which had an impact on noninterest income and noninterest expense.
AM&M is a fee-based financial planning company headquartered in Pittsford, New
York. AM&M provides financial products and services to clients through three
operating companies: (1) AM&M Planners, Inc., which provides fee based financial
planning and wealth management services for corporate executives, small business
owners, and high net worth individuals; (2) Ensemble Financial Services, Inc.,
an independent Broker/Dealer and leading outsourcing company for financial
planners and investment advisors; and (3) Ensemble Risk Solutions, Inc., which
creates customized risk management plans using life, disability and long-term
care insurance products.
Noninterest income for the first quarter of 2006 was $8.9 million, up 31.1% from
the same period in 2005. Insurance commissions and fees were $2.2 million in the
first quarter of 2006, up 18.9% from the $1.9 million reported for the same
period in 2005. Investment services income was $2.7 million in the first quarter
of 2006, up 98.6% from the $1.4 million reported in 2005. AM&M contributed
approximately $1.5 million to noninterest income during the quarter. Service
charges on deposit accounts in the first quarter of 2006 were up 3.3% when
compared to the prior year at approximately $1.8 million. Mr. Byrnes noted,
"Growth in our fee income businesses takes on greater importance in the current
interest rate environment, which continues to put pressure on our net interest
margin."
Noninterest expenses were $17.9 million for the first quarter, up 17.7% from
the same period in 2005. Approximately $1.3 million of the $2.7 million increase
over the prior year is attributable to the addition of AM&M. Additionally,
compensation costs increased by $150,000 due to the expensing of stock options
required by the Company's adoption of Statement of Financial Accounting Standard
No. 123 (revised 2004) on January 1, 2006. Costs associated with certain
strategic initiatives also contributed to higher costs in 2006, including: the
March 2006 opening of our Southeast Office of Mahopac National Bank (our fifth
full-service office in Putnam County); Tompkins Insurance Agencies' acquisition
of the Farrell-Messler Agency in Trumansburg, New York, in March 2006; and
recent expansion of retail brokerage services.
Byrnes commented, "Expansion of banking and other related financial services
continue to be important elements of our corporate strategy and first quarter
activities reflected significant progress in this regard. We are also pleased to
announce Tompkins Insurance Agencies' acquisition of certain assets of Potter
Enterprises of WNY, Inc., an insurance agency in Western New York, effective
April 1, 2006."
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 a full range of
money management services through Tompkins Investment Services (a division of
Tompkins Trust Company). The Company offers insurance services through its
Tompkins Insurance Agencies, Inc. subsidiary, an independent agency serving
individuals and business clients throughout western New York. The Company also
offers fee-based financial planning and wealth management services through its
AM&M Financial Services, Inc. subsidiary. 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
(in thousands except share and per share data) 3/31/2006 12/31/2005
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ASSETS
Cash and non-interest bearing balances due from banks $ 54,165 $ 62,436
Interest bearing balances due from banks 2,338 861
Federal funds sold 0 2,500
Available-for-sale securities, at fair value 617,581 576,242
Held-to-maturity securities, fair value of $82,761 at March 31, 2006,
and $82,768 at December 31, 2005 82,618 82,658
Loans and leases, net of unearned income and deferred costs and fees 1,259,411 1,271,349
Less reserve for loan/lease losses 13,803 13,677
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Net Loans/Leases 1,245,608 1,257,672
Bank premises and equipment, net 37,575 36,938
Corporate owned life insurance 27,479 27,169
Goodwill 16,704 12,286
Intangible assets 3,146 2,160
Accrued interest and other assets 45,483 45,948
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Total Assets $ 2,132,697 $ 2,106,870
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES,
AND SHAREHOLDERS' EQUITY
Deposits:
Interest-bearing:
Checking, savings, and money market $ 703,925 $ 688,521
Time 656,664 634,607
Noninterest-bearing 342,697 359,882
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Total Deposits 1,703,286 1,683,010
Securities sold under agreements to repurchase 154,023 152,651
Other borrowings 66,160 63,673
Other liabilities 22,921 24,863
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Total Liabilities 1,946,390 1,924,197
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Minority interest in consolidated subsidiaries 1,485 1,452
Shareholders' equity:
Common stock - par value $0.10 per share: Authorized 15,000,000 shares;
Issued 9,062,915 shares at March 31, 2006, and 8,999,587 shares at December 31, 2005 906 900
Surplus 120,393 118,663
Undivided profits 72,911 69,228
Accumulated other comprehensive loss (8,062) (6,308)
Treasury stock at cost: 54,609 shares at March 31, 2006, and 53,483 shares at December 31, 2005 (1,326) (1,262)
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Total Shareholders' Equity $ 184,822 $ 181,221
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Total Liabilities, Minority Interest in Consolidated Subsidiaries,
and Shareholders' Equity $ 2,132,697 $ 2,106,870
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Consolidated Statements of Income (Unaudited)
(in thousands except per share data) Three months ended
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03/31/2006 03/31/2005
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INTEREST AND DIVIDEND INCOME
Loans $ 21,625 $ 18,659
Interest on balances due from banks 57 42
Federal funds sold 5 10
Available-for-sale securities 6,614 5,710
Held-to-maturity securities 721 544
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Total Interest and Dividend Income 29,022 24,965
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INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 2,944 1,199
Other deposits 5,349 3,550
Federal funds purchased and securities sold under
agreements to repurchase 1,311 1,064
Other borrowings 699 729
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Total Interest Expense 10,303 6,542
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Net Interest Income 18,719 18,423
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Less: Provision for loan/lease losses 459 452
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Net Interest Income After Provision for Loan/Lease Losses 18,260 17,971
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NONINTEREST INCOME
Investment services income 2,746 1,383
Insurance commissions and fees 2,204 1,854
Service charges on deposit accounts 1,910 1,849
Card services income 690 603
Other service charges 609 629
Increase in cash surrender value of corporate owned life insurance 306 253
Gains on sales of loans 34 42
Other income 396 166
Net realized gain on available-for-sale securities 0 6
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Total Noninterest Income 8,895 6,785
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NONINTEREST EXPENSES
Salary and wages 8,277 6,806
Pension and other employee benefits 2,346 2,024
Net occupancy expense of bank premises 1,177 1,045
Furniture and fixture expense 942 904
Marketing expense 549 547
Professional fees 363 325
Software licenses and maintenance 430 433
Cardholder expense 351 325
Amortization of intangible assets 176 161
Other operating expense 3,300 2,648
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Total Noninterest Expenses 17,911 15,218
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 9,244 9,538
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Minority interest in consolidated subsidiaries 33 33
Income Tax Expense 2,814 3,092
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Net Income $ 6,397 $ 6,413
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Basic Earnings Per Share $ 0.64 $ 0.65
Diluted Earnings Per Share $ 0.63 $ 0.64
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Per share data has been retroactively adjusted to reflect a 10% stock dividend
declared on April 25, 2006.
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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Mar-06 Dec-05 Sept-05 Jun-05 Mar-05 Dec-05
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Period End Balance Sheet
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Securities $ 700,199 $ 658,900 $ 664,158 $ 667,089 $ 665,695 $ 658,900
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Loans and leases, net of unearned income
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and deferred costs and fees 1,259,411 1,271,349 1,247,890 1,222,801 1,193,530 1,271,349
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Reserve for loan/lease losses 13,803 13,677 13,384 12,985 12,920 13,677
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Total assets 2,132,697 2,106,870 2,080,743 2,042,404 2,005,700 2,106,870
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Total deposits 1,703,286 1,683,010 1,621,962 1,590,092 1,606,200 1,683,010
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Federal funds purchased and securities sold
under agreements to repurchase 154,023 152,651 168,837 166,923 141,506 152,651
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Other borrowings 66,160 63,673 79,849 84,435 67,019 63,673
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Shareholders' Equity 184,822 181,221 179,752 176,438 169,516 181,221
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Average Balance Sheet
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Average earning assets $ 1,963,599 $ 1,936,167 $ 1,906,969 $ 1,886,210 $ 1,854,432 $ 1,896,197
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Average assets 2,118,662 2,077,383 2,049,262 2,027,802 1,996,702 2,038,040
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Average interest-bearing liabilities 1,572,373 1,540,015 1,514,008 1,514,026 1,491,678 1,515,062
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Average equity 185,118 178,781 176,862 172,434 171,768 174,986
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Share data
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Weighted average shares outstanding (basic) 9,940,364 9,863,592 9,852,531 9,846,077 9,848,797 9,852,789
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Weighted average shares outstanding (diluted) 10,078,158 10,009,747 10,000,821 9,975,066 10,015,405 10,000,300
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Period-end shares outstanding 9,033,236 8,969,908 8,964,075 8,950,710 8,956,468 8,969,908
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Book value per share $ 18.60 $ 18.37 $ 18.23 $ 17.92 $ 17.21 $ 18.37
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Income Statement
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Net interest income $ 18,719 $ 18,708 $ 19,089 $ 18,801 $ 18,423 $ 75,021
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Provision for loan/lease losses 459 829 662 716 452 2,659
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Noninterest income 8,895 8,664 7,707 7,627 6,785 30,783
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Noninterest expense 17,911 15,961 15,605 15,338 15,218 62,122
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Minority interest in consolidated subsidiaries 33 32 33 33 33 131
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Income tax expense 2,814 3,336 3,386 3,393 3,092 13,207
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Net income 6,397 7,214 7,110 6,948 6,413 27,685
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Basic earnings per share $ 0.64 $ 0.73 $ 0.72 $ 0.71 $ 0.65 $ 2.81
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Diluted earnings per share $ 0.63 $ 0.72 $ 0.71 $ 0.70 $ 0.64 $ 2.77
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Asset Quality
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Net charge-offs $ 333 $ 535 $ 264 $ 651 $ 81 $ 1,531
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Nonaccrual loans and leases 3,055 4,072 4,203 5,290 6,000 4,072
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Loans and leases 90 days past due and accruing 105 12 100 570 6 12
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Troubled debt restructurings not included above 50 50 0 50 185 50
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Total nonperforming loans and leases 3,210 4,134 4,303 5,910 6,191 4,134
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OREO 673 366 96 202 359 366
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Nonperforming assets 3,883 4,500 4,399 6,112 6,550 4,500
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Mar-06 Dec-05 Sept-05 Jun-05 Mar-05 Dec-05
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.11% 0.17% 0.08% 0.22% 0.03% 0.13%
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Nonperforming loans and leases/loans and leases 0.25% 0.33% 0.34% 0.48% 0.52% 0.33%
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Nonperforming assets/assets 0.18% 0.21% 0.21% 0.30% 0.33% 0.21%
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Reserve/ nonperforming loans and leases 429.99% 330.84% 311.04% 219.71% 208.69% 330.84%
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Reserve/loans and leases 1.10% 1.08% 1.07% 1.06% 1.08% 1.08%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.4% 8.5% 8.4% 8.2% 8.2% 8.5%
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Total capital / risk-weighted assets 13.8% 13.7% 13.7% 13.6% 13.6% 13.7%
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Profitability
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Return on average assets * 1.22% 1.38% 1.38% 1.37% 1.30% 1.36%
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Return on average equity * 14.02% 16.01% 15.95% 16.16% 15.14% 15.82%
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Net interest margin (TE) * 4.02% 3.99% 4.12% 4.15% 4.18% 4.11%
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* Quarterly ratios have been annualized
Share and per share data has been retroactively adjusted to reflect a 10% stock
dividend declared on April 25, 2006.