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, July 19, 2006
Tompkins Trustco, Inc. reports second quarter earnings
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported net income of $6.8 million for the second
quarter of 2006, a decrease of 2.4% from net income of $6.9 million reported in
the same quarter of 2005. Diluted earnings per share of $0.68 for the second
quarter of 2006 represents a 2.9% decline from the $0.70 reported in the second
quarter of 2005.
For year-to-date 2006, diluted earnings per share were $1.31, a decline of 2.2%
from the $1.34 reported for first six months of 2005. Net income of $13.2
million for the first six months of 2006 was down 1.4%, compared to $13.4
million for the six months ended June 30, 2005.
Chairman and CEO, James J. Byrnes commented, "The continued upward movement in
short term interest rates has resulted in a very challenging environment for net
interest income. We are pleased, as we face this challenging market environment,
to have growing fee income businesses and to have maintained very good trends in
asset quality."
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Net interest income decreased 3.9% in the second quarter of 2006 compared to the
same period in 2005, as a result of a narrowing net interest margin. Rising
short-term interest rates have contributed to increases in funding costs, while
a flat yield curve has constrained the yields of our longer-term earning assets.
The net interest margin declined from 4.15% in the second quarter of 2005, to
3.83% in the second quarter of 2006. Partially offsetting the impact of the
narrowing net interest margin was growth in average earning assets, which
increased $85.4 million, or 4.5%, in the second quarter of 2006 over the same
period in 2005. Average loans for the second quarter 2006 increased 3.3% over
the comparable period in 2005 to $1.2 billion at June 30, 2006. Growth in
average loans is net of the securitization of $32.0 million of residential
mortgage loans in June 2006. These residential loans were packaged into
mortgage-backed securities and are now held in the Company's available-for-sale
securities portfolio. For the year-to-date period, net interest income was down
1.2%, while the net interest margin decreased to 3.92% for the first six months
of 2006, from 4.16% for the first six months of 2005.
Asset quality continues to be strong. Nonperforming assets, which include
nonaccrual loans, loans 90 days past due and still accruing, troubled debt
restructurings, and other real estate owned, were $4.1 million at June 30, 2006,
down from $6.1 million at June 30, 2005. As a percentage of total assets, the
level of nonperforming assets declined from 0.30% at June 30, 2005, to 0.19% at
June 30, 2006. Net charge-offs of loans during the second quarter of 2006 were
$167,000 compared with $651,000 in the year-earlier period. For the
year-to-date-period 2006, net charge-offs were $500,000, down from $732,000 for
the comparable period in 2005. Improvement in asset quality trends, along with
the lower level of net charge-offs, resulted in a lower provision expense for
both the second quarter and year-to-date 2006 compared to comparable prior year
periods.
Deposit growth continues to provide funding for growth in earning assets. Total
deposits at June 30, 2006 were $1.6 billion, an increase of $56.4 million or
3.5% from the same period last year. Deposit growth was concentrated in time
deposits of $100,000 or more, which were up $57.8 million and
noninterest-bearing deposits, which were up $15.4 million. Savings and money
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market deposit accounts were down $19.3 million, as some deposits migrated to
higher yielding time deposits. The Company also uses wholesale funding such as
borrowings and securities sold under agreements to repurchase to support asset
growth. At June 30, 2006, these wholesale funding sources amounted to $283.4
million, up from $251.4 million at June 30, 2005.
Noninterest income for the second quarter of 2006 was $10.1 million, an increase
of 32.6% from the same period in 2005. Noninterest income for the first six
months of 2006 was $19.0 million, up 31.9% from the first six months of 2005.
Contributing to the increase in both the quarter-to-date and year-to-date
periods were growth in investment services fees and insurance commissions and
fees, both of which benefited from the first quarter acquisition of AM&M
Financial Services, Inc. (AM&M). Noninterest income also benefited from growth
in service charges on deposit accounts and proceeds from excess death benefit on
life insurance.
Noninterest expenses were $18.5 million for the second quarter, up 20.5% over
the same period in 2005. Noninterest expense in the first six months of 2006
totaled $36.4 million, an increase of 19.1% over the year earlier period. The
increase in the second quarter and year-to-date periods of 2006 was primarily
due to higher compensation and benefits related expenses. Contributing to the
increase in noninterest expense is the acquisition of AM&M, the expensing of
stock options, insurance agency acquisitions, corporate donations, and recent
expansion of retail brokerage services. Also adding to expense growth were the
recent additions of two new banking offices, the Southeast Office of Mahopac
National Bank opened March 2006 and the Greece Office of The Bank of Castile
opened July 2006.
Mr. Byrnes commented, "the expansion of our branch network and continued
investments in our related financial services businesses are key components of
our corporate strategy and are especially important in this challenging interest
rate environment. During the second quarter of 2006, Tompkins Insurance
Agencies, Inc. acquired certain assets of Potter Enterprises of WNY, Inc., and
on July 1, 2006, we acquired the Kemp Agency."
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Mr. Byrnes noted, "that the Company lost a great leader and friend during the
quarter with the passing of Tompkins Trust Company CEO Stephen E. Garner. Steve
was an inspirational leader and a strong advocate of our corporate strategy. As
previously reported, I have assumed Steve's role of CEO of Tompkins Trust
Company as we plan for a successor."
Tompkins Trustco, Inc. operates 36 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.
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Consolidated Statements of Condition (Unaudited)
As of As of
(in thousands except share and per share data) 6/30/2006 12/31/2005
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ASSETS
Cash and non-interest bearing balances due from banks $ 54,582 $ 62,436
Interest bearing balances due from banks 818 861
Federal funds sold 0 2,500
Available-for-sale securities, at fair value 641,894 576,242
Held-to-maturity securities, fair value of $76,011 at June 30, 2006,
and $82,768 at December 31, 2005 76,336 82,658
Loans and leases, net of unearned income and deferred costs and fees 1,242,408 1,271,349
Less reserve for loan/lease losses 13,710 13,677
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Net Loans/Leases 1,228,698 1,257,672
Bank premises and equipment, net 39,986 36,938
Corporate owned life insurance 25,094 27,169
Goodwill 16,939 12,286
Intangible assets 3,224 2,160
Accrued interest and other assets 49,117 45,948
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Total Assets $ 2,136,688 $ 2,106,870
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES,
AND SHAREHOLDERS' EQUITY
Deposits:
Interest-bearing:
Checking, savings, and money market $ 695,701 $ 688,521
Time 597,526 634,607
Noninterest-bearing 353,306 359,882
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Total Deposits 1,646,533 1,683,010
Securities sold under agreements to repurchase 149,027 152,651
Other borrowings 134,353 63,673
Other liabilities 24,195 24,863
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Total Liabilities 1,954,108 1,924,197
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Minority interest in consolidated subsidiaries 1,457 1,452
Shareholders' equity:
Common stock - par value $0.10 per share: Authorized 15,000,000 shares;
Issued 9,859,962 shares at June 30, 2006, and 9,899,546 shares
at December 31, 2005 986 900
Surplus 157,448 118,663
Undivided profits 35,726 69,228
Accumulated other comprehensive loss (11,646) (6,308)
Treasury stock at cost: 61,590 shares at June 30, 2006, and 58,831 shares
at December 31, 2005 (1,391) (1,262)
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Total Shareholders' Equity $ 181,123 $ 181,221
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Total Liabilities, Minority Interest in Consolidated Subsidiaries,
and Shareholders' Equity $ 2,136,688 $ 2,106,870
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Consolidated Statements of Income (Unaudited)
(In thousands, except per share data) Three months ended Six months ended
06/30/2006 06/30/2005 06/30/2006 06/30/2005
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INTEREST AND DIVIDEND INCOME
Loans $ 21,937 $ 19,749 $ 43,562 $ 38,409
Balances due from banks 8 6 65 48
Federal funds sold 4 2 9 13
Available-for-sale securities 7,097 5,908 13,710 11,618
Held-to-maturity securities 693 595 1,415 1,138
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Total Interest and Dividend Income 29,739 26,260 58,761 51,226
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INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 3,430 1,492 6,375 2,691
Other deposits 5,981 3,928 11,329 7,478
Federal funds purchased and securities sold under
agreements to repurchase 1,300 1,204 2,611 2,269
Other borrowings 959 835 1,658 1,564
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Total Interest Expense 11,670 7,459 21,973 14,002
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Net Interest Income 18,069 18,801 36,788 37,224
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Less: Provision for loan/lease losses 74 716 533 1,168
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Net Interest Income After Provision
for Loan/Lease Losses 17,995 18,085 36,255 36,056
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NONINTEREST INCOME
Investment services income 3,095 1,351 5,956 2,374
Insurance commissions and fees 2,261 1,935 4,465 3,789
Service charges on deposit accounts 2,085 2,055 3,995 3,904
Card services income 708 665 1,398 1,268
Other service charges 578 796 1,217 1,453
Increase in cash surrender value of
corporate owned life insurance 265 264 570 516
Life insurance proceeds 685 0 685 0
Gains on sale of loans 44 78 78 120
Other income 395 470 648 609
Net realized gain on available-for-sale securities 0 13 0 19
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Total Noninterest Income 10,116 7,627 19,012 14,412
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NONINTEREST EXPENSES
Salary and wages 8,386 7,124 16,664 13,931
Pension and other employee benefits 2,204 1,844 4,550 3,868
Net occupancy expense of bank premises 1,252 1,013 2,428 2,058
Furniture and fixture expense 925 896 1,868 1,800
Marketing expense 654 590 1,202 1,137
Professional fees 331 346 694 671
Software licenses and maintenance 545 473 975 906
Cardholder expense 319 338 670 663
Amortization of intangible assets 182 153 357 315
Other operating expense 3,684 2,561 6,986 5,207
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Total Noninterest Expenses 18,482 15,338 36,394 30,556
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 9,629 10,374 18,873 19,912
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Minority interest in consolidated subsidiaries 33 33 65 66
Income Tax Expense 2,817 3,393 5,632 6,485
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Net Income $ 6,779 $ 6,948 $ 13,176 $ 13,361
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Basic Earnings Per Share $ 0.69 $ 0.71 $ 1.33 $ 1.36
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Diluted Earnings Per Share $ 0.68 $ 0.70 $ 1.31 $ 1.34
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Per share data has been retroactively adjusted to reflect a 10% stock dividend
paid on May 15, 2006.
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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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Jun-06 Mar-06 Dec-05 Sept-05 Jun-05 Dec-05
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Period End Balance Sheet
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Securities $ 718,230 $ 700,199 $ 658,900 $ 664,158 $ 667,089 $ 658,900
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Loans and leases, net of unearned income
and deferred costs and fees 1,242,408 1,259,411 1,271,349 1,247,890 1,222,801 1,271,349
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Reserve for loan/lease losses 13,710 13,803 13,677 13,384 12,985 13,677
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Total assets 2,136,688 2,132,697 2,106,870 2,080,743 2,042,404 2,106,870
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Total deposits 1,646,533 1,703,286 1,683,010 1,621,962 1,590,092 1,683,010
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Federal funds purchased and securities sold
under agreements to repurchase 149,027 154,023 152,651 168,837 166,923 152,651
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Other borrowings 134,353 66,160 63,673 79,849 84,435 63,673
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Shareholders' Equity 181,123 184,822 181,221 179,752 176,438 181,221
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Average Balance Sheet
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Average earning assets $ 1,971,601 $ 1,963,599 $ 1,936,167 $ 1,906,969 $ 1,886,210 $ 1,896,197
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Average assets 2,118,051 2,118,662 2,077,383 2,049,262 2,027,802 2,038,040
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Average interest-bearing liabilities 1,583,751 1,572,373 1,540,015 1,514,008 1,514,026 1,515,062
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Average equity 179,813 185,118 178,781 176,862 172,434 174,986
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Share data
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Weighted average shares outstanding (basic) 9,857,712 9,940,364 9,863,592 9,852,531 9,846,077 9,852,789
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Weighted average shares outstanding (diluted) 9,970,639 10,078,158 10,009,747 10,000,821 9,975,066 10,000,300
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Period-end shares outstanding 9,827,315 9,033,236 8,969,908 8,964,075 8,950,710 8,969,908
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Book value per share $ 18.43 $ 18.60 $ 18.37 $ 18.23 $ 17.92 $ 18.37
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Income Statement
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Net interest income $ 18,069 $ 18,719 $ 18,708 $ 19,089 $ 18,801 $ 75,021
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Provision for loan/lease losses 74 459 829 662 716 2,659
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Noninterest income 10,116 8,895 8,664 7,707 7,627 30,783
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Noninterest expense 18,482 17,911 15,961 15,605 15,338 62,122
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Minority interest in consolidated subsidiaries 33 33 32 33 33 131
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Income tax expense 2,817 2,814 3,336 3,386 3,393 13,207
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Net income 6,779 6,397 7,214 7,110 6,948 27,685
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Basic earnings per share $ 0.69 $ 0.64 $ 0.73 $ 0.72 $ 0.71 $ 2.81
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Diluted earnings per share $ 0.68 $ 0.63 $ 0.72 $ 0.71 $ 0.70 $ 2.77
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Asset Quality
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Net charge-offs $ 167 $ 333 $ 535 $ 264 $ 651 $ 1,531
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Nonaccrual loans and leases 2,960 3,055 4,072 4,203 5,290 4,072
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Loans and leases 90 days past due and accruing 542 105 12 100 570 12
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Troubled debt restructurings not included above 50 50 50 0 50 50
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Total nonperforming loans and leases 3,552 3,210 4,134 4,303 5,910 4,134
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OREO 513 673 366 96 202 366
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Nonperforming assets 4,065 3,883 4,500 4,399 6,112 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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Jun-06 Mar-06 Dec-05 Sept-05 Jun-05 Dec-05
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.05% 0.11% 0.17% 0.08% 0.22% 0.13%
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Nonperforming loans and leases/loans and leases 0.29% 0.25% 0.33% 0.34% 0.48% 0.33%
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Nonperforming assets/assets 0.19% 0.18% 0.21% 0.21% 0.30% 0.21%
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Reserve/ nonperforming loans and leases 385.98% 429.99% 330.84% 311.04% 219.71% 330.84%
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Reserve/loans and leases 1.10% 1.10% 1.08% 1.07% 1.06% 1.08%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.3% 8.4% 8.5% 8.4% 8.2% 8.5%
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Total capital / risk-weighted assets 13.7% 13.8% 13.7% 13.7% 13.6% 13.7%
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Profitability
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Return on average assets * 1.28% 1.22% 1.38% 1.38% 1.37% 1.36%
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Return on average equity * 15.12% 14.02% 16.01% 15.95% 16.16% 15.82%
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Net interest margin (TE) * 3.83% 4.02% 3.99% 4.12% 4.15% 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 paid on May 15, 2006.
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