EXHIBIT 99.1
[GRAPHIC OMITTED]
TOMPKINS
TRUSTCO INC.
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, CFO
Tompkins Trustco, Inc. 607.273.3210
For Immediate Release
Wednesday, April 25, 2007
Tompkins Trustco, Inc. reports first quarter earnings and announces early
adoption of SFAS 159
ITHACA, NY - Tompkins Trustco, Inc. (TMP - American Stock Exchange)
Tompkins Trustco, Inc. reported diluted earnings per share of $0.58 for the
first quarter of 2007, a decrease of 7.9% from the $0.63 per share reported in
the same quarter of 2006. Net income of $5.8 million for the first quarter of
2007, down 9.6% from the $6.4 million reported for the first quarter of 2006.
Stephen S. Romaine, President and CEO stated, "Although the current interest
rate environment remains a significant challenge, management is committed to
optimizing long-term shareholder value by expanding our fee-based products and
services, increasing our focus on efficiency, growing loans and core deposits,
and maintaining strong asset quality."
The following significant highlights and events have impacted first quarter
results, or have occurred recently and will impact future periods:
o Net interest income of $17.6 million in the first quarter of
2007 was down 6.2% from the same quarter in 2006, primarily
due to higher deposit costs.
o The net interest margin was 3.55% in the first quarter of
2007, compared to 3.64% in the fourth quarter of 2006, and
4.02% in the first quarter of 2006.
o Despite the decline in net interest margin, total revenue
(consisting of net interest income and noninterest income) was
up 1.4% in the first quarter of 2007, compared to the same
period last year. Investment services and insurance revenues
were significant contributors to the increase over the first
quarter of 2006.
o Tompkins elected to adopt Statements of Financial Accounting
Standards ("SFAS") No. 159 and 157 effective January 1, 2007,
prior to the required effective date of each standard. The
Company elected the fair value measurement option for $65.9
million (at cost) of pre-existing securities within its
available-for-sale securities portfolio.
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o First quarter 2007 net income includes a pre-tax gain of
$452,000, representing the change in fair value of $62.2
million of securities measured under SFAS 159.
o Although the adoption of SFAS 159 had no impact on Total
Shareholders' Equity, the cumulative-effect adjustment of $1.5
million, representing the unrealized loss on these securities
(net of tax), was reclassified from Accumulated Other
Comprehensive Loss as a reduction of Retained Earnings, on
January 1, 2007.
o In April 2007, Tompkins initiated a securities portfolio
restructuring transaction whereby it sold approximately $62
million in securities that were carried in the Company's
trading portfolio subsequent to the adoption of SFAS 159. The
Company expects to realize a pre-tax loss of approximately
$273,000 on the disposal of these securities in the second
quarter. Proceeds from the sale are expected to be reinvested
in higher-yielding securities that will also improve the
Company's liquidity and interest rate risk exposure position.
Substantially all of the reinvested proceeds will be carried
in the Company's trading portfolio.
o Noninterest expenses for the first quarter of 2007 were up
6.6% over the prior year. Current period expenses were
impacted by business expansion initiatives, which included
insurance agency acquisitions, expansion of retail brokerage
services, and the expansion of banking offices.
o In the first quarter of 2007, the Company engaged a consulting
group to assist management in continuing to identify and
implement profit improvement initiatives designed to reduce
expenses and increase revenue. Management is encouraged by the
preliminary results of this effort and expects to begin
implementation in the second quarter. The overall financial
impact on second quarter results is expected to be modest, as
implementation expenses will largely offset profit improvement
gains during the quarter. Management expects these efforts to
begin having a positive impact on financial results in the
second half of 2007.
Total assets were $2.3 billion at March 31, 2007, up 3.1% over December 31,
2006, and up 6.9% over March 31, 2006. Asset growth over the past twelve months
included $80.6 million in total loans and leases, $49.6 million in total
securities, and $27.0 million in Federal funds sold. Nonperforming assets were
$7.7 million at March 31, 2007, up from $3.9 million a year ago. The increase is
mainly due to a $4.1 million commercial relationship that is 90% guaranteed by a
government agency. For the first quarter 2007, net charge-offs were $276,000,
down from $333,000 in the first quarter 2006.
Total deposits at March 31, 2007, were $1.8 billion, an increase of $106.5
million or 6.3% over March 31, 2006. The growth in deposits was primarily in
time deposits, which increased by $92.1 million or 14.0%. Savings and money
market deposits were up $20.4 million or 2.9% from March 31, 2006, while
noninterest-bearing deposits were down $6.1 million or 1.8%. Deposit growth
benefited from the opening of three banking offices in 2006, the Southeast
Office of Mahopac National Bank (March 2006), the Greece Office of The Bank of
Castile (July 2006), and the Wappingers Falls Office of Mahopac National Bank
(December 2006).
Net interest income of $17.6 million in the first quarter of 2007, was down 6.2%
from $18.7 million for the same quarter last year, and was down 2.3% from $18.0
million for the fourth quarter of 2006. The decrease in net interest income was
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mainly due to higher funding costs, which were partially offset by improved loan
and investment yields. The net interest margin was 3.55% in the first quarter of
2007, compared to 3.64% in the fourth quarter of 2006, and 4.02% in the first
quarter of 2006.
Noninterest income for the first quarter of 2007 was $10.5 million, up 17.5%
from the same period in 2006. Insurance commissions and fees and investment
services income accounted for the majority of the growth in noninterest income.
Insurance commissions and fees benefited from the acquisition of four insurance
agencies in 2006, while investment services income benefited from the expansion
of retail brokerage services in early 2006 and new account generation.
Noninterest income also includes a $452,000 pre-tax gain on trading securities
subsequent to the adoption of SFAS 159.
Noninterest expenses for the first quarter of 2007 were $19.1 million, an
increase of 6.6% over the prior year. The increase in the first quarter was
primarily in compensation and benefits related expenses and premises and fixed
asset expenses, which were impacted by business expansion initiatives that
included insurance agency acquisitions, expansion of retail brokerage services,
and the expansion of banking offices. In addition to the banking offices
mentioned above, we opened a Tompkins Financial Center office in the Village of
Cayuga Heights, New York. This office caters to customer needs for mortgage,
investments, financial planning, and insurance services.
Tompkins Trustco, Inc. operates 38 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 New York State. The Company offers
fee-based financial planning and wealth management services through its AM&M
Financial Services, Inc. subsidiary. AM&M Financial Services, Inc. is also the
parent Company to Ensemble Financial Services, Inc., an independent broker
dealer and leading outsourcing company for financial planners and investment
advisors. Each Tompkins subsidiary operates with a community focus, meeting the
unique needs of the communities served.
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"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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Tompkins Trustco, Inc. - Condensed Consolidated Statements of Condition
(Unaudited)
(In thousands, except share data)
As of As of
ASSETS 3/31/2007 12/31/2006
------------- -------------
Cash and noninterest bearing balances due from banks $ 40,918 $ 48,251
Interest bearing balances due from banks 1,559 1,723
Federal funds sold 27,000 2,200
Trading securities, at fair value 62,205 0
Available-for-sale securities, at fair value 631,315 655,322
Held-to-maturity securities, fair value of $56,686 at
March 31, 2007,
and $59,606 at December 31, 2006 56,244 59,038
Loans and leases, net of unearned income and deferred
costs and fees 1,339,995 1,326,298
Less: Allowance for loan/lease losses 14,523 14,328
- ---------------------------------------------------------------------------------------------------
Net Loans/Leases 1,325,472 1,311,970
Bank premises and equipment, net 44,159 43,273
Corporate owned life insurance 25,910 25,622
Goodwill 21,229 21,235
Other intangible assets 3,862 4,051
Accrued interest and other assets 40,290 38,152
- ---------------------------------------------------------------------------------------------------
Total Assets $ 2,280,163 $ 2,210,837
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LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 724,381 $ 680,844
Time 748,755 669,222
Noninterest bearing 336,608 359,354
- ---------------------------------------------------------------------------------------------------
Total Deposits 1,809,744 1,709,420
Federal funds purchased and securities sold under
agreements to repurchase 199,665 191,490
Other borrowings 46,311 85,941
Other liabilities 31,847 32,914
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Total Liabilities $ 2,087,567 $ 2,019,765
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Minority interest in consolidated subsidiaries 1,485 1,452
Shareholders' equity:
Common stock - par value $.10 per share:
Authorized 15,000,000 shares;
Issued: 9,842,400 at March 31, 2007; and 9,889,569
at December 31, 2006 984 989
Additional paid-in capital 155,863 158,203
Retained earnings 45,740 44,429
Accumulated other comprehensive loss (9,899) (12,487)
Treasury stock, at cost, 65,837 shares at March 31, 2007,
and 64,418 shares at December 31, 2006 (1,577) (1,514)
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Total Shareholders' Equity $ 191,111 $ 189,620
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Total Liabilities, Minority Interest in Consolidated
Subsidiaries And Shareholders' Equity $ 2,280,163 $ 2,210,837
===================================================================================================
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Tompkins Trustco, Inc. - Condensed Consolidated Statements of Income (Unaudited)
(in thousands except per share data) Three months ended
------------------------------
03/31/2007 03/31/2006
------------- -------------
INTEREST AND DIVIDEND INCOME
Loans $ 23,399 $ 21,625
Balances due from banks 91 57
Federal funds sold 96 5
Available-for-sale securities 7,243 6,614
Trading securities 569 0
Held-to-maturity securities 536 721
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Total Interest and Dividend Income 31,934 29,022
- ---------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 4,419 2,944
Other deposits 7,426 5,349
Federal funds purchased and securities sold under
agreements to repurchase 1,963 1,311
Other borrowings 568 699
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Total Interest Expense 14,376 10,303
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Net Interest Income 17,558 18,719
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Less: Provision for loan/lease losses 471 459
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Net Interest Income After Provision for Loan/Lease Losses 17,087 18,260
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NONINTEREST INCOME
Investment services income 3,471 2,861
Insurance commissions and fees 2,716 2,206
Service charges on deposit accounts 1,923 1,910
Card services income 798 690
Other service charges 661 639
Gains on trading securities, net 452 0
Increase in cash surrender value of corporate owned life 272 306
insurance
Gains on sales of loans 55 34
Other income 79 251
Net realized gain on available-for-sale securities 23 0
- ---------------------------------------------------------------------------------------------------
Total Noninterest Income 10,450 8,897
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NONINTEREST EXPENSES
Salary and wages 8,802 8,277
Pension and other employee benefits 2,503 2,348
Net occupancy expense of bank premises 1,504 1,177
Furniture and fixture expense 947 942
Marketing expense 635 549
Professional fees 571 363
Software licenses and maintenance 500 430
Cardholder expense 235 351
Amortization of intangible assets 181 176
Other operating expense 3,219 3,300
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Total Noninterest Expenses 19,097 17,913
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 8,440 9,244
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Minority interest in consolidated subsidiaries 33 33
Income Tax Expense 2,626 2,814
===================================================================================================
Net Income $ 5,781 $ 6,397
===================================================================================================
Basic Earnings Per Share $ 0.59 $ 0.64
Diluted Earnings Per Share $ 0.58 $ 0.63
===================================================================================================
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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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Mar-07 Dec-06 Sept-06 Jun-06 Mar-06 Dec-06
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Period End Balance Sheet
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Securities $ 749,764 $ 714,360 $ 710,242 $ 718,230 $ 700,199 $ 714,360
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Loans and leases, net of unearned income
and deferred costs and fees 1,339,995 1,326,298 1,277,552 1,242,408 1,259,411 1,326,298
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Allowance for loan/lease losses 14,523 14,328 14,120 13,710 13,803 14,328
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Total assets 2,280,163 2,210,837 2,179,695 2,136,688 2,132,697 2,210,837
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Total deposits 1,809,744 1,709,420 1,703,439 1,646,533 1,703,286 1,709,420
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Federal funds purchased and securities
sold under agreements to repurchase 199,665 191,490 170,679 149,027 154,023 191,490
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Other borrowings 46,311 85,941 87,003 134,353 66,160 85,941
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Shareholders' Equity 191,111 189,620 188,928 181,123 184,822 189,620
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Average Balance Sheet
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Average earning assets $ 2,075,905 $ 2,027,098 $ 1,986,050 $ 1,971,601 $ 1,963,599 $ 1,987,258
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Average assets 2,234,524 2,181,906 2,138,042 2,118,051 2,118,662 2,138,943
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Average interest-bearing liabilities 1,671,532 1,615,409 1,581,486 1,583,751 1,572,373 1,588,211
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Average equity 189,252 191,307 183,199 179,813 185,118 184,872
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Share data
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Weighted average shares outstanding
(basic) 9,846,679 9,798,941 9,816,272 9,857,712 9,940,364 9,857,787
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Weighted average shares outstanding
(diluted) 9,947,815 9,970,466 9,960,340 9,970,639 10,078,158 9,999,365
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Period-end shares outstanding 9,809,753 9,856,922 9,790,547 9,827,315 9,936,560 9,856,922
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Book value per share $ 19.48 $ 19.24 $ 19.30 $ 18.43 $ 18.60 $ 19.24
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Income Statement
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Net interest income $ 17,558 $ 17,965 $ 18,104 $ 18,069 $ 18,719 $ 72,857
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Provision for loan/lease losses 471 409 482 74 459 1,424
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Noninterest income 10,450 12,120 9,960 10,116 8,895 41,091
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Noninterest expense 19,097 18,058 17,459 18,482 17,911 71,910
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Minority interest in consolidated
subsidiaries 33 32 33 33 33 131
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Income tax expense 2,626 3,798 3,287 2,817 2,814 12,716
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Net income 5,781 7,788 6,803 6,779 6,397 27,767
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Basic earnings per share $ 0.59 $ 0.79 $ 0.69 $ 0.69 $ 0.64 $ 2.82
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Diluted earnings per share $ 0.58 $ 0.78 $ 0.68 $ 0.68 $ 0.63 $ 2.78
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Asset Quality
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Net charge-offs $ 276 $ 201 $ 72 $ 167 $ 333 $ 773
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Nonaccrual loans and leases 7,358 2,994 3,307 2,960 3,055 2,994
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Loans and leases 90 days past due
and accruing 10 8 519 542 105 8
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Troubled debt restructurings not
included above 0 0 0 50 50 0
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Total nonperforming loans and leases 7,368 3,002 3,826 3,552 3,210 3,002
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OREO 345 348 354 513 673 348
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Nonperforming assets 7,713 3,350 4,180 4,065 3,883 3,350
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Tompkins Trustco, Inc. - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Mar-07 Dec-06 Sept-06 Jun-06 Mar-06 Dec-06
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.08% 0.06% 0.02% 0.05% 0.11% 0.06%
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Nonperforming loans and leases/loans
and leases 0.55% 0.23% 0.30% 0.29% 0.25% 0.23%
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Nonperforming assets/assets 0.34% 0.15% 0.19% 0.19% 0.18% 0.15%
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Allowance/nonperforming loans and leases 197.11% 477.28% 369.05% 385.98% 429.99% 477.28%
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Allowance/loans and leases 1.08% 1.08% 1.11% 1.10% 1.10% 1.08%
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Capital Adequacy (period-end)
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Tier I capital / average assets 8.1% 8.3% 8.3% 8.3% 8.4% 8.3%
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Total capital / risk-weighted assets 12.8% 13.1% 13.2% 13.7% 13.8% 13.1%
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Profitability
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Return on average assets * 1.05% 1.42% 1.26% 1.28% 1.22% 1.30%
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Return on average equity * 12.39% 16.15% 14.73% 15.12% 14.02% 15.02%
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Net interest margin (TE) * 3.55% 3.64% 3.75% 3.83% 4.02% 3.81%
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* Quarterly ratios have been annualized
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