Exhibit 99.1
[GRAPHIC OMITTED]
Tompkins
Financial
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, CFO
Tompkins Financial Corporation 607.273.3210
For Immediate Release
Wednesday, January 30, 2008
Tompkins Financial Corporation reports fourth quarter earnings
ITHACA, NY - Tompkins Financial Corporation (TMP-American Stock Exchange)
Tompkins Financial Corporation reported diluted earnings per share of $0.77 for
the fourth quarter of 2007, a 1.3% decline from the $0.78 per share reported in
the same quarter of 2006, and a 10.0% increase from $0.70 per share reported in
the third quarter of 2007. On a consecutive quarter basis, the fourth quarter of
2007 represented the Company's third quarter in a row of earnings per share
growth.
For the full year, diluted earnings per share were $2.70 in 2007, down 2.9% from
$2.78 in 2006. Stephen S. Romaine, President and CEO stated, "We finished 2007
with some very good earnings momentum. We are also pleased that our annual
results, when adjusted for non-recurring items below, outperformed the prior
year. Further, Tompkins did not participate in the sub-prime market and
continues to have strong credit quality. These trends give us reason to be
optimistic on the outlook heading into 2008."
Fourth quarter and year-to-date results for 2007 reflect declines from 2006;
however, diluted earnings per share for the fourth quarter would have shown a
30.2% increase over 2006, and the full year diluted earnings per share would
have shown growth of 10.2% over 2006, if results were adjusted for the
non-recurring items described below. See Summary Financial Data for a
reconciliation of the amounts.
o Visa Litigation: In October 2007, Visa completed a
reorganization in contemplation of its initial public offering
("IPO") expected to occur in 2008. As part of the Visa
reorganization, Visa member banks are obligated under various
agreements with Visa to indemnify Visa for losses stemming
from certain "Covered Litigation" in which Visa is a
defendant. The estimate of Tompkins' proportionate share of
losses related to the Covered Litigation is extremely
difficult to quantify and involves a great deal of judgment.
Nevertheless, in the fourth quarter of 2007 Tompkins recorded
a pre-tax charge to other operating expense of $862,000
($517,000 after tax effect, or $0.05 per diluted share)
related to the Covered Litigation. As part of the
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reorganization, Tompkins received shares of common stock of
Visa, Inc., for which it has not recognized any value. The
Company anticipates that a portion of the shares received in
the reorganization will be redeemed by Visa as part of the IPO
to fund an escrow account to pay any judgments or settlements
that may arise out of the Covered Litigation, with the
remaining shares eventually converted to Class A. Management
anticipates that the Company's share of the expected proceeds
from the IPO will exceed the Company's share of any losses
related to such litigation.
o Reorganization charges: In the third quarter of 2007, the
Company recognized a pre-tax charge of $1.2 million ($712,000
after tax effect, or $0.07 per diluted share) in
reorganization and associated consulting charges related to
profit improvement initiatives.
o Credit Card Sale: In the fourth quarter of 2006, the Company
recognized a pre-tax gain of $2.6 million ($1.5 million after
tax effect, or $0.15 per diluted share) on the sale of
approximately $9.4 million of credit card loans.
o Life Insurance Proceeds: The second quarter of 2006 included
$685,000 ($0.07 per diluted share) in life insurance proceeds.
The Company's largest revenue source, net interest income, was $19.5 million in
the fourth quarter of 2007, reflecting a record level of quarterly net interest
income. Net interest income was $74.0 million for the year, up 1.6% from the
prior year. The net interest margin was 3.70% in the fourth quarter of 2007,
3.61% in the third quarter of 2007, and 3.64% in the fourth quarter of 2006. The
improved net interest income reflected the growth in total loans and core
deposits, which were up 8.6% and 6.0%, respectively over December 31, 2006. Key
fee income categories also showed solid growth over the same quarter last year
with investment services income up 23.2%; insurance revenues up 8.4%; and
service charges on deposit accounts up 42.3%.
Noninterest expenses were up 8.3% and 8.5%, respectively over for the fourth
quarter and the full year periods ended December 31, 2006, and were negatively
impacted by the previously mentioned VISA litigation and reorganization charges.
Total assets were $2.4 billion at December 31, 2007, up 6.7% from December 31,
2006. Asset growth over the past twelve months included $113.8 million in total
loans and leases, and $34.5 million in total securities. Nonperforming assets at
December 31, 2007, represented a modest 0.40% of total assets, up from 0.15%
twelve months earlier. The increase over the prior year is mainly due to a
single commercial relationship, the majority of which is 90% guaranteed by a
government agency. For the twelve months ended December 31, 2007, net
charge-offs were $1.3 million up from $773,000 in 2006. Provision for loan and
lease loss expense for the year-to-date period in 2007 was $1.5 million,
slightly more than net charge-offs for the same period.
Total deposits at December 31, 2007, were $1.7 billion, an increase of $11.4
million over December 31, 2006. Growth in core deposits (total deposits less
time deposits of $100,000 or more, brokered deposits and municipal money market
deposits) was partially offset by declines in large time deposits. Core deposits
increased by 6.5% or $82.0 million from the prior year and represented
approximately 79% of total deposits at December 31, 2007. Core deposit growth
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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). In May 2007, The Bank of Castile opened a drive-up kiosk office
in Batavia, NY.
The Company repurchased 23,248 shares during the fourth quarter of 2007 at an
average price of $40.64 per share. For the year ended December 31, 2007, the
Company repurchased 332,347 shares at an average price of $38.86 per share.
Mr. Romaine added, "As we look forward into 2008, we are very encouraged by the
recent trends in our performance. We also look forward to the opportunities
presented by our pending acquisition of Sleepy Hollow Bancorp. The acquisition
is expected to close near the end of the first quarter of 2008 and provides an
excellent opportunity to expand our presence in Westchester, one of the nation's
most attractive markets, with established locations and experienced staff."
Tompkins Financial Corporation operates 39 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.
"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 Financial Corporation - Condensed Consolidated Statements of Condition
(Unaudited)
(In thousands, except share data)
As of As of
12/31/2007 12/31/2006
------------ ------------
ASSETS
Cash and noninterest bearing balances due from banks $ 46,705 $ 48,251
Interest bearing balances due from banks 3,154 1,723
Federal funds sold 0 2,200
Trading securities, at fair value 60,135 0
Available-for-sale securities, at fair value 639,148 655,322
Held-to-maturity securities, fair value of $50,297 at December 31, 2007,
and $59,606 at December 31, 2006 49,593 59,038
Loans and leases, net of unearned income and deferred costs and fees 1,440,122 1,326,298
Less: Allowance for loan/lease losses 14,607 14,328
- ---------------------------------------------------------------------------------------------------------------------
Net Loans/Leases 1,425,515 1,311,970
Bank premises and equipment, net 44,811 43,273
Corporate owned life insurance 29,821 25,622
Goodwill 22,894 21,235
Other intangible assets 3,497 4,051
Accrued interest and other assets 34,186 38,152
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Total Assets $ 2,359,459 $ 2,210,837
=====================================================================================================================
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 741,836 $ 680,844
Time 585,142 669,222
Noninterest bearing 393,848 359,354
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Total Deposits 1,720,826 1,709,420
Federal funds purchased and securities sold under agreements to
repurchase ($15,553 valued at fair value at December 31, 2007) 195,447 191,490
Other borrowings ($10,795 valued at fair value at December 31, 2007) 210,862 85,941
Other liabilities 33,677 32,914
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Total Liabilities $ 2,160,812 $ 2,019,765
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Minority interest in consolidated subsidiaries 1,452 1,452
Shareholders' equity:
Common stock - par value $.10 per share: Authorized 15,000,000 shares;
Issued: 9,615,430 at December 31, 2007; and 9,889,569 at December 31, 2006. 962 989
Additional paid-in capital 147,657 158,203
Retained earnings 57,255 44,429
Accumulated other comprehensive loss (6,900) (12,487)
Treasury stock, at cost, 70,896 shares at December 31, 2007,
and 64,418 shares at December 31, 2006. (1,779) (1,514)
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Total Shareholders' Equity $ 197,195 $ 189,620
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Total Liabilities, Minority Interest in Consolidated Subsidiaries
And Shareholders' Equity $ 2,359,459 $ 2,210,837
=====================================================================================================================
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Tompkins Financial Corporation - Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data) Three months ended Twelve months ended
---------------------------- ----------------------------
12/31/2007 12/31/2006 12/31/2007 12/31/2006
------------ ------------ ------------ ------------
INTEREST AND DIVIDEND INCOME
Loans $ 25,077 $ 23,424 $ 97,418 $ 89,784
Balances due from banks 33 13 217 86
Federal funds sold 0 5 217 15
Trading securities 773 0 2,762 0
Available-for-sale securities 7,755 7,545 29,773 28,536
Held-to-maturity securities 494 574 2,054 2,620
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Total Interest and Dividend Income 34,132 31,561 132,441 121,041
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INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 3,002 3,911 14,750 13,350
Other deposits 7,827 7,210 30,735 25,215
Federal funds purchased and securities sold under agreements
to repurchase 2,059 1,811 8,125 5,905
Other borrowings 1,771 664 4,802 3,714
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Total Interest Expense 14,659 13,596 58,412 48,184
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Net Interest Income 19,473 17,965 74,029 72,857
Less: Provision for loan/lease losses 479 409 1,529 1,424
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Net Interest Income After Provision for Loan/Lease Losses 18,994 17,556 72,500 71,433
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NONINTEREST INCOME
Investment services income 3,818 3,098 14,446 12,225
Insurance commissions and fees 2,606 2,405 11,046 9,444
Service charges on deposit accounts 2,886 2,028 10,401 8,054
Card services income 867 828 3,453 2,972
Other service charges 709 615 2,643 2,483
Mark-to-market gain on trading securities 392 0 612 0
Mark-to-market loss on liabilities held at fair value (682) 0 (1,348) 0
Increase in cash surrender value of corporate owned life
insurance 264 265 1,122 1,111
Life insurance proceeds 0 0 0 685
Gains on sale of loans 8 2,623 159 2,741
Other income 257 272 1,131 1,398
Net realized gain on available-for-sale securities 96 15 384 15
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Total Noninterest Income 11,221 12,149 44,049 41,128
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NONINTEREST EXPENSES
Salary and wages 8,608 8,437 35,225 33,365
Pension and other employee benefits 2,273 2,066 9,986 8,696
Net occupancy expense of bank premises 1,515 1,401 6,046 5,068
Furniture and fixture expense 972 981 3,866 3,733
Marketing expense 536 582 2,284 2,432
Professional fees 668 698 3,258 2,099
Software licenses and maintenance 516 504 2,071 1,938
Cardholder expense 242 260 974 1,219
Amortization of intangible assets 155 134 653 674
Other operating expense 4,103 3,024 13,693 12,723
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Total Noninterest Expenses 19,588 18,087 78,056 71,947
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Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 10,627 11,618 38,493 40,614
- -----------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 32 33 131 131
Income Tax Expense 3,171 3,797 11,991 12,716
- -----------------------------------------------------------------------------------------------------------------------------
Net Income $ 7,424 $ 7,788 $ 26,371 $ 27,767
=============================================================================================================================
Basic Earnings Per Share $ 0.78 $ 0.79 $ 2.72 $ 2.82
=============================================================================================================================
Diluted Earnings Per Share $ 0.77 $ 0.78 $ 2.70 $ 2.78
=============================================================================================================================
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Tompkins Financial Corporation - Summary Financial Data (Unaudited)
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(In thousands, except per share data) Quarter-Ended Year-Ended
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Dec-07 Sept-07 June-07 Mar-07 Dec-06 Dec-07
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Period End Balance Sheet
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Securities $ 748,876 $ 751,242 $ 714,760 $ 749,764 $ 714,360 $ 748,876
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Loans and leases, net of unearned income
and deferred costs and fees 1,440,122 1,383,928 1,361,415 1,339,995 1,326,298 1,440,122
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Allowance for loan/lease losses 14,607 14,410 14,357 14,523 14,328 14,607
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Total assets 2,359,459 2,316,862 2,261,057 2,280,163 2,210,837 2,359,459
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Total deposits 1,720,826 1,725,728 1,698,143 1,809,744 1,709,420 1,720,826
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Federal funds purchased and securities sold
under agreements to repurchase 195,447 196,085 188,939 199,665 191,490 195,447
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Other borrowings 210,862 148,213 156,214 46,311 85,941 210,862
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Shareholders' Equity 197,195 189,808 185,049 191,111 189,620 197,195
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Average Balance Sheet
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Average earning assets $2,154,891 $2,097,965 $2,092,773 $2,075,905 $2,027,098 $2,105,581
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Average assets 2,318,558 2,259,801 2,251,474 2,234,524 2,181,906 2,266,224
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Average interest-bearing liabilities 1,717,843 1,674,654 1,681,831 1,671,532 1,615,409 1,686,559
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Average equity 191,221 185,384 188,399 189,252 191,307 188,482
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Share data
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Weighted average shares outstanding (basic) 9,560,649 9,627,356 9,756,118 9,846,679 9,798,941 9,696,724
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Weighted average shares outstanding (diluted) 9,657,751 9,699,091 9,823,184 9,947,815 9,970,466 9,781,789
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Period-end shares outstanding 9,582,783 9,580,034 9,673,858 9,809,753 9,856,922 9,582,783
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Book value per share $ 20.58 $ 19.81 $ 19.13 $ 19.48 $ 19.24 $ 20.58
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Income Statement
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Net interest income $ 19,473 $ 18,503 $ 18,490 $ 17,563 $ 17,965 $ 74,029
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Provision for loan/lease losses 479 387 192 471 409 1,529
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Noninterest income 11,221 11,584 10,799 10,445 12,149 44,049
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Noninterest expense 19,588 19,699 19,672 19,097 18,087 78,056
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Minority interest in consolidated subsidiaries 32 33 33 33 32 131
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Income tax expense 3,171 3,163 3,031 2,626 3,798 11,991
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Net income 7,424 6,805 6,361 5,781 7,788 26,371
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Basic earnings per share $ 0.78 $ 0.71 $ 0.65 $ 0.59 $ 0.79 $ 2.72
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Diluted earnings per share $ 0.77 $ 0.70 $ 0.65 $ 0.58 $ 0.78 $ 2.70
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Asset Quality
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Net charge-offs $ 282 $ 334 $ 358 $ 276 $ 201 $ 1,250
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Nonaccrual loans and leases 8,890 7,869 8,474 7,358 2,994 8,890
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Loans and leases 90 days past due and accruing 312 370 2 10 8 312
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Troubled debt restructurings not included above 145 150 0 0 0 145
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Total nonperforming loans and leases 9,347 8,239 8,476 7,368 3,002 9,347
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OREO 5 345 362 345 348 5
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Nonperforming assets 9,352 8,584 8,838 7,713 3,350 9,352
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Quarter-Ended Year-Ended
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Dec-07 Sept-07 June-07 Mar-07 Dec-06 Dec-07
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Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.08% 0.10% 0.11% 0.08% 0.06% 0.09%
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Nonperforming loans and leases/loans and leases 0.65% 0.60% 0.62% 0.55% 0.23% 0.65%
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Nonperforming assets/assets 0.40% 0.37% 0.39% 0.34% 0.15% 0.40%
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Allowance/nonperforming loans and leases 156.27% 174.90% 169.38% 197.11% 477.28% 156.27%
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Allowance/loans and leases 1.01% 1.04% 1.05% 1.08% 1.08% 1.01%
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Capital Adequacy (period-end)
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Tier I capital / average assets 7.9% 7.9% 7.9% 8.1% 8.3% 7.9%
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Total capital / risk-weighted assets 12.2% 12.4% 12.6% 12.8% 13.1% 12.2%
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Profitability
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Return on average assets * 1.27% 1.19% 1.13% 1.05% 1.42% 1.16%
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Return on average equity * 15.40% 14.56% 13.54% 12.39% 16.15% 13.99%
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Net interest margin (TE) * 3.70% 3.61% 3.66% 3.55% 3.64% 3.63%
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* Quarterly ratios have been annualized
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Quarter-ended Year-Ended
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Non-GAAP Disclosure Dec-07 Sept-07 June-07 Mar-07 Dec-06 Dec-07
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Reported net income 7,424 6,805 6,361 5,781 7,788 26,371
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Adjustments:
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Proceeds from sale of credit card portfolio (1,537)
(after-tax)
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Reorganization related charges (after-tax) 712 712
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Accrual for VISA settlements (after-tax) 517 517
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Subtotal adjustments 517 712 0 0 (1,537) 1,229
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Adjusted net income 7,941 7,517 6,361 5,781 6,251 27,600
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Weighted average shares outstanding (diluted) 9,657,751 9,699,091 9,823,184 9,947,815 9,970,466 9,781,789
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Adjusted diluted earnings per share .82 .78 .65 .58 .63 2.82
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------------------------
Year-to-date period
ended
------------------------
Non-GAAP Disclosure Dec-07 Dec-06
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Reported net income 26,371 27,767
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Adjustments:
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Life insurance proceeds (685)
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Proceeds from sale of credit card portfolio
(after-tax) (1,537)
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Reorganization related charges (after-tax) 712
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Accrual for VISA settlements (after-tax) 517
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Subtotal adjustments 1,229 (2,222)
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Adjusted net income 27,600 25,545
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Weighted average shares outstanding (diluted) 9,781,789 9,999,365
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Adjusted earnings per share 2.82 2.56
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