Looking ahead.
TOGETHER.
TompkinsFinancial.com
CORPORATE REPORT | Two THOUSAND Fourteen
FINANCIAL HIGHLIGHTS
IN THOUSANDS, EXCEPT PER SHARE DATA
2014
2013
% CHANGE
Total assets
Net income attributable to Tompkins Financial Corporation
Net operating income1
Diluted earnings per share
Adjusted diluted earnings per share1
Cash dividends per share
$5,269,561
$52,041
$52,041
$3.48
$3.48
$1.62
$5,003,039
$50,856
$49,379
$3.46
$3.36
$1.54
5.33 %
2.33 %
5.39 %
0.58 %
3.57 %
5.19 %
1 These measures were adjusted to exclude nonrecurring items. These adjusted measures are considered non-GAAP measures and are defined in the Company’s Form 10-K.
SELECTED FINANCIAL DATA
IN THOUSANDS, EXCEPT PER SHARE DATA
2014
2013
2012 1
2011
2010
Financial Statement Highlights
Assets
Total loans
Deposits
Other borrowings
Total equity
Interest and dividend income
Interest expense
Net interest income
Provision for loan and lease losses
Net gains on securities transactions
Net income attributable to Tompkins
Financial Corporation
Per Share Information
Basic earnings per share
Diluted earnings per share
Adjusted diluted earnings per share2
Cash dividends per share
Book value per share
Tangible book value per share3
Selected Ratios
Return on average assets
Return on average equity
Average shareholders’ equity to average assets
Dividend payout ratio
Other Selected Data
IN WHOLE NUMBERS, UNLESS OTHERWISE NOTED
Employees (average full-time equivalent)
Banking offices
Bank access centers (ATMs)
Trust and investment services assets under
management, or custody (in thousands)
$5,269,561
3,393,288
4,169,154
356,541
489,583
184,493
20,683
163,810
2,306
391
$5,003,039
3,194,284
3,947,216
331,531
457,939
185,104
23,975
161,129
6,161
599
$4,837,197
2,954,610
3,950,169
111,848
441,360
158,356
24,213
134,143
8,837
324
$3,400,248 $3,260,343
1,910,358
1,981,849
2,495,873
2,660,564
244,193
186,075
273,408
299,143
144,062
137,088
32,287
25,682
111,775
111,406
8,507
8,945
178
396
52,041
50,856
31,285
35,419
33,831
3.51
3.48
3.48
1.62
32.87
25.69
1.03 %
10.76 %
9.54 %
46.15 %
3.48
3.46
3.36
1.54
31.05
23.70
1.03 %
11.47 %
9.00 %
44.25 %
2.44
2.43
3.16
1.46
30.67
22.96
0.76 %
8.30 %
9.21 %
59.84 %
3.21
3.20
3.21
1.40
26.89
22.58
3.13
3.11
3.11
1.33
25.09
20.88
1.07 %
12.02 %
8.94 %
43.61 %
1.06 %
12.72 %
8.33 %
42.49 %
1,037
65
85
989
66
84
839
66
83
719
45
63
726
45
69
$3,761,972 $3,443,636 $3,240,782
$2,780,622 $2,859,725
1 Includes the impact of the acquisition of VIST Financial on August 1, 2012.
2 Adjusted diluted earnings per share reflects adjustments made for certain nonrecurring items, including merger and integration expenses. There were no adjustments for
nonrecurring items in 2014. Adjustments for 2013 included an $(846,000) after-tax gain on the redemption of trust preferred stock and a $(771,000) after-tax gain on a deposit
conversion. Also, in 2013, 2012 and 2011, after-tax merger related expenses totaled $140,000, $9.7 million and $152,000, respectively. There was also an after-tax VISA accrual
adjustment of $243,000 in 2012. There were no merger related expenses in prior years. Adjusted diluted earnings per share is a non-GAAP measure that management believes
provides management and investors with information that is useful in understanding the Company’s financial performance and condition.
3 Tangible equity capital is used to calculate tangible book value per share and excludes goodwill and other intangibles of $106.9 million in 2014, $108.4 million in 2013, $110.9 million
in 2012, $48.0 million in 2011, and $45.9 million in 2010. This is a non-GAAP measure that management believes provides management and investors with information that is useful in
understanding the Company’s financial performance and condition.
FINANCIAL HIGHLIGHTS | Two THOUSAND Fourteen —> 1
FINANCIAL HIGHLIGHTS | Two THOUSAND Fourteen —> 1
TOMPKINS FINANCIAL
CORPORATION EXPERIENCED
ANOTHER EXCELLENT YEAR IN 2014.
It was a year in which we made many
changes—in our Board leadership, in our
brand, and in our technology.
Shareholder
Message
We were able to make these changes
with confidence, though, as our vision
for our Company remained constant:
one of strength, stability, profitability
and growth, with a local focus, and a
commitment to charitable work in the
communities we serve. We are looking
ahead—together—to achieving even
more.
We are pleased to report another year of record earnings for our
Great progress was made in Pennsylvania last year, and
other roles, including Vice Chairman of the Tompkins
Our Annual Meeting will take place on May 4 at 5:30
Company. With adjustments for non-recurring items, diluted
we look forward to continued success in this region.
Financial Board of Directors. We would like to express
PM at the Country Club of Ithaca. We will also be
earnings per share were up 3.6% over last year. Credit quality
Our efforts to work alongside our customers led to
our gratitude to Jim for his exceptional leadership, and
hosting several Shareholder Information Meetings:
continued to improve as well, with non-performing assets down
an exceptional improvement in asset quality. This is
we look forward to his continued contributions. John
in Western New York on May 6 at 5:30 PM at the
over 30% from December 31, 2013. Year-end loan balances were up
an impressive turnaround from when VIST first joined
McKenna was named the new President and CEO of
Genesee Country Village & Museum, in the Hudson
by more than 6%, and average non-interest bearing deposits were
our Company. We see great opportunities for growth
Tompkins Bank of Castile. John was formerly Senior
Valley region on May 14 at 6:00 PM at Villa Barone
up by 12%. Fee-based revenue from insurance, investment services
in Pennsylvania, and last year’s success positions us
Vice President of Commercial Lending at Tompkins
in Mahopac, and in Southeastern Pennsylvania on
and deposit service charges was also up 3.6% for the year.
well to take advantage of them.
Bank of Castile and brings with him over 25 years of
May 19 at 5:30 PM at the Crowne Plaza in Reading.
banking experience.
As always, we look forward to seeing all of our
2014 was Dr. Thomas Rochon’s first year as Chairman of the Board
We continue to build on the synergies of our
shareholders at these meetings.
for Tompkins Financial. Tom has served as a Director since 2009.
Pennsylvania and New York insurance businesses,
Two of our corporate board members will be leaving
This past summer, he led the board and senior management
leveraging the strengths of both teams. Last year,
in May of 2015: Jim Hardie and Bill Spain. Jim and Bill
through an in-depth strategic planning process that reinforced
we made significant strides in expanding our health
have made great contributions to our Company over
ongoing strategies which continue to prepare us well for the future.
benefits business into Western and Central New
the years. We appreciate their service, their insights
York with the addition of a number of new, large
and their friendship, and we wish them well in all their
We completed a major rebranding of our Company, an effort that
clients. We also enhanced the customer experience in
future endeavors.
affected every office and every employee. The “Tompkins” name
Pennsylvania with a more efficient, personalized claim
now takes the lead in all of our branding, in every territory. This
process. Tompkins Insurance Agencies continues to
rebranding was highly significant for us, creating a common thread
enjoy retention rates that are above 95%, among the
among all of our affiliates. So, for example, a customer of Tompkins
best in the industry.
Bank of Castile can now immediately see the connection with
Tompkins Financial Advisors† and Tompkins Insurance Agencies.
Tompkins Financial Advisors† enjoyed another year
This linkage is also important for our publicly traded stock, helping
of solid performance with growth in all regions.
the financial community to recognize that all of our brands are
Western New York, for example, saw double-digit
part of Tompkins Financial. Our rebranding was a substantial
growth in new assets, while the Hudson Valley region
undertaking. Thanks to the efforts of our employees, it was
increased growth in new clients by over 50%. Our
completed on schedule and was well received in all of our regions.
wealth management team introduced an impressive
In 2014, we launched Business Mobile Banking for use on
wealth advisors. In 2014, we also welcomed Steve
smartphones, giving businesses convenient mobile banking services.
Angelis as the new President of Tompkins Financial
Our introduction of mobile check deposit gave customers the
Advisors and Chris Kim as our new Chief
new tool set to support both our customers and our
ability to deposit checks from anywhere with their smartphones or
Investment Officer.
tablets. Our new credit cards, co-branded with American Express,
come with innovative EMV chip technology, for increased security
After 26 years of committed service, Jim
and greater fraud protection. We are bringing this new technology
Fulmer retired as President and CEO of
to all of our cards. Our customers can now also enjoy Apple Pay
Tompkins Bank of Castile. Jim’s success in
capabilities, giving them the power to pay safely and securely with a
this role has been extraordinary, taking the
single touch of their iPhone.
bank from five locations in two counties
with assets of $85 million, to 16 offices
in five counties with over $1.2 billion in
assets. Jim will remain as Chairman of
the Tompkins Bank of Castile Board of
Directors. He will also continue in several
Dr. Thomas R. Rochon | C H A I R M A N
Stephen S. Romaine | P R E S I D E N T & C E O
MESSAGE TO SHAREHOLDERS | Two THOUSAND Fourteen —> 3
Thank you to everyone who made 2014 another successful year for Tompkins Financial Corporation: our customers, who value and trust us; our employees, who consistently go above and beyond; and our shareholders, who provide extraordinary confidence and support. None of this is possible without you. Landscape contractor
finds convenient,
responsive service.
Cayuga Landscape is the largest and
most respected landscape contractor in
Tompkins County. They are trusted for
everything from creating home landscapes,
to installing major horticultural projects
for Cornell University. A landscaping
project the company did for Tompkins
Trust Company has grown into a close
relationship with the bank. “We rely on
Tompkins for our checking, savings and
direct deposit,” says David Fernandez.
“We also use Tompkins Insurance Agencies
for our workers’ comp, general liability
and other business insurance.” David
especially appreciates the friendly staff who
service his accounts. “They’re always
professional,” he says. “When I
need competent, timely advice, I
can always depend on them.”
Cayuga Landscape Co., Inc. - David Fernandez, President
2014 was a strong year for Central New York, with growth
in mortgages, core deposits and commercial loans. We
appreciate the continued efforts of all of our employees in
making our success possible.
We celebrated the one-year anniversary of our new office in
In Central New York, we serve a population with a high rate of
Cortland, NY. Our reception by the community has been excellent.
turnover. So in 2014, we launched a Concierge Service to help
We have truly been embraced as Cortland’s community bank,
connect people who are new to our community with the banking,
while experiencing double-digit growth in deposits and small
insurance and wealth management services they need. This new
business lending. Our success in Auburn also continued. We
service is helping to relieve stress and ease the transition to our area,
currently hold the second largest share in Cayuga County for
while introducing people to our broad range of services.
deposits. Our success in both of these markets shows the impact
of treating people in the communities we serve as both valued
As competitors have left the area, we stepped up our efforts
customers and genuine friends.
to garner more business from students. This effort led to a 70%
Last year was a very good year for small business lending, with
important segment for us, providing an entrée to new business in
increase in student account acquisition in 2014. Students are a very
continued growth and an overall expansion in our small business
the Ithaca area, in particular.
loan portfolio. We expanded our emphasis on agricultural
business in 2014. This has already resulted in the acquisition of new
We used social media such as Facebook to generate attention for
agribusiness customers using deposit, loan, cash management and
nonprofits. Local organizations created 60-second videos telling
insurance services.
about their work in the community. The public then voted on their
favorites. Tompkins Trust Company made donations to important
Tompkins Insurance Agencies experienced an expansion in
community groups through this project. This was a small part of
agricultural business, with a special focus on wineries. We also
our efforts to support the communities where we live and work.
purchased a small benefits firm in Ithaca. This acquisition enabled
As always, we thank our employees for all they do to support
us to gain share, create a stronger bond with current customers,
charitable organizations in their neighborhoods. Their efforts—
and expand our support of customers during healthcare reform.
both in their day-to-day work and as volunteers—are inspiring and
greatly appreciated.
Tompkins Financial Advisors† had significant growth in new clients.
We brought in a new Senior Trust Counsel, enabling us to reach
out to new prospects in our region. Our wealth management
organization continued to enjoy client retention rates of 95%,
among the highest in the industry. We cannot thank our
employees enough for the efforts that led to this outstanding
level of client satisfaction.
4 —> Two THOUSAND Fourteen | CENTR AL NEW YORK
CENTR AL NEW YORK | Two THOUSAND Fourteen —> 5
Hospicare gets help
with its unique needs.
Caring is central to hospice and palliative
care. So it is not surprising that Dale
Johnson’s nonprofit agency would
choose a bank that truly cares about the
community. “Tompkins Trust Company
has been a major supporter of Women
Swimmin’, our signature fundraising
event,” says Dale. He also appreciates
how the bank has responded to his
agency’s unique requirements. “They
give us the exact array of services we
need,” says Dale. Hospicare also relies
on Tompkins Trust Company for its
trust needs and on Tompkins Insurance
Agencies for its business insurance.
“When we have a question, we
don’t need to call New York or
Boston or Charlotte,” he adds.
“We can get the help we need
right in our hometown.”
Hospicare & Palliative Care Services
Dale Johnson, Executive Director
Grocery store executives return to their roots.
After serving as executives with a $1.5 billion grocery chain, Greg Young and Myles da Cunha
made a major life change—by purchasing two P & C Fresh stores. “We wanted to do something
local,” says Myles. They started out with a large multinational bank. “But we were invisible
from a customer service perspective,” says Greg. The switch to Tompkins Trust Company
made perfect sense. “They have great technology,” says Myles. “But they also take the time
to listen and connect.” Adds Greg: “We know the local farmers and the crops
they’re growing. Tompkins Trust gives us that same kind of close, local
relationship.” Hometown Markets, LLC - Myles da Cunha and Greg Young, Co-Owners
6 —> Two THOUSAND Fourteen | CENTR AL NEW YORK
CENTR AL NEW YORK | Two THOUSAND Fourteen —> 7
Last year was another exceptional year in Western New
York. While we grew and expanded, we also reaffirmed our
commitment to areas that have been critical to our success
throughout the years.
In 2014, we opened a Tompkins Financial Center on Monroe
Last year was one of strong growth in commercial loans. Diversity
Avenue in Pittsford, one of the busiest parts of Monroe County.
is important in commercial lending, and our loans covered
This office acts as a billboard for our Company, reinforcing our
industries ranging from manufacturing to agriculture. Lending
commitment to the Rochester area. This new location houses
to small businesses was a major focus, and this emphasis will
insurance, wealth management, mortgage origination and
continue into the future. Small businesses are one of our best
banking. It has already helped us to acquire significant new
sources of new checking accounts, wealth management services
accounts in Monroe County.
and insurance services. By helping these businesses succeed and
grow, we also help the communities we serve to thrive.
While we are expanding in urban areas like Monroe County,
our commitment to traditional markets continues. In fact, the
The quality of our loan portfolio continues to be very strong.
exit of other banks from many markets has only created greater
Classified loans and past due loans are at an extraordinarily low
opportunities for us. Tompkins purchased and renovated a two-
level. This not only has a positive impact on earnings, it allows
story building on Main Street in Batavia, NY. This building is being
us to stay focused on providing the highest quality service to
used to support both banking and insurance. The purchase of this
our current clients while also seeking relationships with new
building demonstrates our commitment to growth in this region.
customers.
Tompkins Insurance Agencies continues to grow from our roots
In 2014, Tompkins Financial placed third among mid-sized
in Western New York. This past year, we were ranked the third
companies for Rochester’s Top Workplaces. We were also
largest insurance firm in Western New York by the Rochester
honored to receive the Ethics Award—an outstanding reflection
Business Journal, a ranking that covers a six-county region.
of the values for which we stand. We thank our employees for
Congratulations to everyone at Tompkins Insurance Agencies on
making Tompkins Bank of Castile, Tompkins Insurance Agencies
this excellent achievement.
and Tompkins Financial Advisors† truly great places to work. None
of this would be possible without their dedication and hard work.
Tompkins Financial Advisors† experienced double-digit growth
in new assets in Western New York and strengthened our
In April, Joe Bucci will retire from the Tompkins Bank of Castile
offerings by providing our customers and wealth advisors with
Board and Jim Hardie will retire from the Tompkins Insurance
powerful new tools. Our employees did an outstanding job
Agencies Board. We would like to thank Joe and Jim for their
sharing the benefits of these tools with our customers.
outstanding contributions over the years, and we wish them all
the best in the future.
Local retailer finds
service that’s
faster and friendlier.
John Gerhard has always had
a focus on service—first as
the Executive Director of a
large law firm, and now as the
owner of the Bird House, a
nature-oriented retailer. “I got
fed up with the service I was
getting from our bank,” says
John. “They were interested in
their spreadsheets. My style was
shaking hands.” He talked to
Tompkins Bank of Castile about
his commercial loans. “Within
three days, I had proposals that
made good sense,” he says.
John gradually shifted all of his
business to Tompkins. “I ended
up with better rates, while
getting better service,” says John.
“Tompkins acts like they
can’t do enough for me.”
The Bird House
John Gerhard, President
8 —> Two THOUSAND Fourteen | WESTERN NEW YORK
WESTERN NEW YORK | Two THOUSAND Fourteen —> 9
Entertainment destination
expands and thrives.
Started as a drive-in movie theater “in the middle of
nowhere,” the Charcoal Corral has grown steadily.
“We started with five or six employees,” says Rick
Stefanon, company President. “Now we have over a
hundred.” As the business added miniature golf, live
entertainment, food, ice cream and a family arcade,
Tompkins Bank of Castile provided the financing.
“They’ve always been here for me,” says Rick. “They
never turned me down.” Rick also depends on
Tompkins Insurance Agencies for all of his business
insurance. “Whenever I’ve had an insurance
issue, they automatically step right in and
take care of it,” he says. “I’m worry-free.”
Charcoal Corral - Rick Stefanon, President
Campus services organization
finds a trusted partner.
“I can sleep at night, knowing that Tompkins is thinking about us,”
says Mark Scott, Executive Director of Campus Auxiliary Services at
SUNY Geneseo. The organization manages a wide array of services
on the SUNY Geneseo campus—from dining and vending, to
transportation and laundry services. The organization turned to
Tompkins Insurance Agencies for its umbrella policies and liability
insurance over eight years ago. Soon after, they switched their
banking to Tompkins Bank of Castile. “We can get immediate
answers from them,” says Mark. “They’ve even brought us
change when we needed it. What bank on the planet
does that? They truly see us as important.”
Campus Auxiliary Services at SUNY Geneseo - Mark Scott, Executive Director
10 —> Two THOUSAND Fourteen | WESTERN NEW YORK
WESTERN NEW YORK | Two THOUSAND Fourteen —> 11
Truck equipment and
trailer dealer finds a
simpler, friendlier bank.
“Our bank was nickel-and-diming us
with service charges,” says Matt Maneri,
President of Hudson River Truck
and Trailer. When a representative of
Tompkins Mahopac Bank stopped by
half a dozen times to share what they
could offer, Matt decided to switch
banks. Now, he couldn’t be more
satisfied. Tompkins Mahopac Bank
made it easy to get the line of credit his
company needed for its large inventory
of truck equipment and trailers.
“Whenever we go to borrow money—
whether it’s for a line of credit, or for a
new piece of equipment—they make
it simple.” The biggest benefit for Matt?
“They make it easy to grow our
business.”
Hudson River Truck and Trailer
Matt Maneri, President
Lynn Maneri, Vice President
Last year was the most successful year ever in the Hudson
Valley region. Our consistent efforts over the past several
years were rewarded with record earnings, noteworthy
achievements and outstanding contributions to the
communities we serve.
In 2014, Tompkins Mahopac Bank reached a major milestone,
2014 was a year of new leadership for Tompkins Financial Advisors†.
surpassing $1 billion in assets. This is a significant achievement.
In the Hudson Valley, we welcomed a new Managing Director
We would like to thank all of our employees who worked so hard
who helped lead the region to an excellent year, increasing new
to take us to this new level of success. Achievements like this are
clients by over 55%. We look forward to further growth under his
impossible without their hard work, dedication and willingness to
leadership.
go above and beyond.
We stayed true to our mission of providing long-term value to our
Our bank experienced a significant improvement in credit quality
communities through responsible lending. With the First Home
last year. This was achieved by working alongside our customers
Club & Community One residential lending programs, we are
through difficult economic times. By helping customers get back
assisting first-time home buyers—an important catalyst for growth
on their feet, we not only improved our credit quality, we helped
in the local economy. We are also the only bank in the Hudson
these businesses continue as a vital part of the communities we
Valley region to participate in the Bridge to Success small business
serve. The positive impact—both on our Company and on these
lending program for businesses owned by minorities and women.
communities—is noteworthy.
Through these programs and others like them, we are stimulating
growth in our communities while remaining committed to sensible
Deposit growth was strong in 2014. The Yonkers Avenue office was
lending practices.
a big contributor, thanks to its new location and a concentrated
effort by our employees to bring in new business. Our Wappingers
In addition to supporting over 175 charitable organizations, we
Falls office also experienced excellent growth in deposits as a result
worked with four charities that had a special personal connection
of concentrated new business efforts. We were highly successful
to our employees: Maria Fareri Children’s Hospital, the Cystic
throughout the rest of our region as many of our new customer
Fibrosis Foundation, the ALS Association and Make-A-Wish. Efforts
relationships came to us through referrals from existing satisfied
like these truly demonstrate our dedication to the communities
customers, a true reflection of the service excellence provided by
we serve. Thank you to all of our employees for making our fund-
our staff. This resulted in a substantial number of new customer
raising efforts both highly meaningful and incredibly successful.
relationships, creating a solid basis for further growth.
1 —> Two THOUSAND Fourteen | FINANCIAL HIGHLIGHTS
HUDSON VALLEY | Two THOUSAND Fourteen —> 13
Construction company reacts
nimbly to big opportunities.
“We like unique projects,” says Paul Guillaro,
President of Unicorn Contracting Corp. Paul
needed a bank that could understand such
unique projects—and help him to act on
them. “Tompkins Mahopac Bank can give me a
preliminary answer on a project within a week,”
says Paul. As a result, he has turned to the bank for
financing on five of his company’s recent projects.
“They are very steady and consistent, and we
are too,” he says. Paul appreciates how the bank
supports his projects—and his business: “They
are an important part of keeping our
projects moving forward and helping
Unicorn continue to grow.”
Unicorn Contracting Corp. - Paul Guillaro, President
Catering company seizes chance to expand.
When Michele Savino and Peter DeVito wanted to expand their catering business to serve
commercial airliners, they took the idea to their current bank. “They weren’t interested—they
just wished us well!” says Michele. So the two partners talked to Tompkins Mahopac Bank. “They
believed in us,” says Michele. And that enabled the partners to transform a 45,000 square foot
building into a state-of-the-art catering facility. Michele and Peter have now moved all of their
business banking to Tompkins Mahopac Bank. “They gave us the ability to go for what
we believed in,” says Michele. “They are simply fantastic.”
121 Inflight Catering - Michele Savino and Peter DeVito, Co-Owners
14 —> Two THOUSAND Fourteen | HUDSON VALLEY
HUDSON VALLEY | Two THOUSAND Fourteen —> 15
The Pennsylvania region saw many positive changes in 2014.
We made great strides in improving asset quality, we placed
exceptional new leaders in key areas, and we recommitted
ourselves to helping our communities.
Commercial lending at Tompkins VIST Bank continued to grow,
VIST Capital Management was rebranded as Tompkins Financial
with a focus on first-rate customer service and high asset quality.
Advisors†. This change was well-received by both clients and
Agricultural lending represents a big opportunity for Tompkins
communities. Tompkins Financial Advisors† experienced a record-
VIST Bank. So in 2014, we hired a new head of agricultural lending
setting performance in Pennsylvania for the year. Thank you to all
with 20 years of experience in this area. We are now well-positioned
of our employees for their outstanding work in making this success
to take advantage of the opportunities that exist in agricultural
possible.
business. We reaffirmed our commitment to small and medium-
sized businesses and consumers. By improving our responsiveness,
Several leadership changes at Tompkins VIST Bank helped
increasing our visibility and investing in our communities, we are
to invigorate our efforts in serving customers. These changes
building something we can be proud to share with our neighbors.
included new leaders for commercial lending, mortgage sales, retail
As a result, we were selected Best Bank in Berks County for the
operations and special assets. These leaders are bringing new energy
second year in a row.
and focus to their jobs, while helping to inspire our employees.
Tompkins VIST Bank made incredible progress in reducing troubled
People throughout our organization have become re-energized to
loans and improving credit quality in 2014. This is an impressive
serve their communities. By helping our employees connect with
turnaround, one that was achieved in the true spirit of community
organizations where they have a passion, we are seeing a significant
banking. We worked hand-in-hand with our customers,
increase in the number of employees who are giving back by
improving credit quality while also building a strong reputation
volunteering their time. We would like to express our deepest
in the community. By working closely with our customers, we
gratitude to our employees for their impressive contributions to
reduced delinquencies significantly. It is hard to overestimate the
their communities. In your efforts to go above and beyond, you
importance of this achievement, and we thank our employees for
are truly demonstrating the values that make Tompkins VIST Bank,
all they did to make it happen.
Tompkins Insurance and Tompkins Financial Advisors† special parts
of the communities we serve.
Tompkins Insurance purchased a voluntary benefits agency in
Southeastern Pennsylvania, allowing us to offer new services that
our customers will need under healthcare reform. We also opened
a new office in Pottstown, providing much needed space and the
opportunity for future expansion by banking, insurance and wealth
management.
16 —> Two THOUSAND Fourteen | SOUTHE ASTERN PENNSYLVANIA
Liberal arts
college saves
interest and
adds programs.
“We operate in an extremely
competitive environment,”
says Dr. Lex McMillan,
President of Albright College.
“So we’re always looking for
ways we can make ourselves
more competitive.” The
college started out working
with Tompkins Insurance
for health, vision and dental
insurance. Albright then
turned to Tompkins VIST
Bank for assistance with
financing. “They helped us
refinance our current debt
with very attractive terms,”
says Dr. McMillan. The
refinancing saves Albright
a significant amount in
interest each year. “They are
a genuine community bank,”
says Dr. McMillan. “Their
leadership walks the
walk. They truly see us
as both their partners
and their neighbors.”
Albright College
Dr. Lex McMillan, President
A regional zoo makes a
big turnaround.
When Al Zone took over as CEO of the Elmwood
Park Zoo in 2011, the zoo was in financial trouble.
But with the help of Tompkins VIST Bank, the zoo
made a dramatic turnaround. A line of credit from
Tompkins VIST took the pressure off—and helped
the zoo create exciting new attractions. “Tompkins
VIST has been phenomenal,” says Al. “With their
help, we’ve taken revenue from $1.6 million to
about $5 million.” Tompkins Insurance has also
had an important impact, helping the zoo manage
the risks of new additions like zip-lines. Says Al:
“They’re just as excited about our growth
as we are.”
Elmwood Park Zoo - Al Zone, Executive Director and CEO
Construction company gets
support through highs and lows.
“When George gives his word to a customer, he sticks to it,”
says Tammy Rubright-Gallo, Secretary and Treasurer of Rubright
Construction. “We wanted a bank that would be like that, too.”
George and his company have worked with Tompkins VIST Bank
for over a decade, relying on them for everything from commercial
loans to checking accounts. “They understand the highs and the
lows,” says George. “They’re not a fair weather friend.” George also
depends on Tompkins Insurance for his company’s corporate
insurance. “They’ve been here for us in the past,” says
George. “And they’ll be here for us in the future.”
Rubright Construction - George R. Rubright, Jr., President
18 —> Two THOUSAND Fourteen | SOUTHE ASTERN PENNSYLVANIA
SOUTHEASTERN PENNSYLVANIA | Two THOUSAND Fourteen —> 19
CONSOLIDATED STATEMENTS OF CONDITION
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA
Assets
Cash and noninterest bearing balances due from banks
Interest bearing balances due from banks
Cash and Cash Equivalents
Trading securities, at fair value
Available-for-sale securities, at fair value (amortized cost of $1,397,458 at December 31,
AS OF DECEMBER 31,
2014
2013
$53,921
2,149
56,070
$82,163
721
82,884
8,992
10,991
2014 and $1,368,736 at December 31, 2013)
1,402,236
1,354,811
Held-to-maturity securities, at amortized cost (fair value of $89,036 at December 31, 2014
and $19,625 at December 31, 2013)
Originated loans and leases, net of unearned income and deferred costs and fees
Acquired loans and leases, covered
Acquired loans and leases, non-covered
Less: Allowance for loan and lease losses
Net Loans and Leases
FDIC indemnification asset
Federal Home Loan Bank stock
Bank premises and equipment, net
Corporate-owned life insurance
Goodwill
Other intangible assets, net
Accrued interest and other assets
Total Assets
Liabilities
Deposits:
Interest bearing:
Checking, savings and money market
Time
Noninterest bearing
Total Deposits
88,168
2,839,974
19,319
533,995
28,997
3,364,291
1,903
21,259
59,800
73,725
92,243
14,649
86,225
$5,269,561
18,980
2,527,244
25,868
641,172
27,970
3,166,314
4,790
25,041
55,932
69,335
92,140
16,298
105,523
$5,003,039
2,247,708
898,081
1,023,365
4,169,154
2,190,616
865,702
890,898
3,947,216
Federal funds purchased and securities sold under agreements to repurchase
147,037
167,724
Other borrowings, including certain amounts at fair value of $10,961 at December 31, 2014
and $11,292 at December 31, 2013
Trust preferred debentures
Other liabilities
Total Liabilities
Equity
Tompkins Financial Corporation Shareholders’ Equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,931,354 at December 31, 2014; and 14,785,007 at December 31, 2013
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, at cost – 111,436 shares at December 31, 2014, and 105,449 shares
at December 31, 2013
Total Tompkins Financial Corporation Shareholders’ Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
356,541
37,337
69,909
$4,779,978
331,531
37,169
61,460
$4,545,100
1,493
348,889
165,160
(24,011 )
(3,400 )
488,131
1,452
$489,583
$5,269,561
1,479
346,096
137,102
(25,119 )
(3,071)
456,487
1,452
$457,939
$5,003,039
IN THOUSANDS, EXCEPT PER SHARE DATA
Interest and Dividend Income
Loans
Due from banks
Federal funds sold
Trading securities
Available-for-sale securities
Held-to-maturity securities
Federal Home Loan Bank stock and Federal Reserve Bank stock
Total Interest and Dividend Income
Interest Expense
Time certificates of deposits of $100,000 or more
Other deposits
Federal funds purchased and securities sold under agreements to repurchase
Trust preferred debentures
Other borrowings
Total Interest Expense
Net Interest Income
Less: Provision for loan and lease losses
Net Interest Income After Provision for Loan and Lease Losses
Noninterest Income
Insurance commissions and fees
Investment services income
Service charges on deposit accounts
Card services income
Mark-to-market on trading securities
Mark-to-market gain on liabilities held at fair value
Net other-than-temporary impairment losses1
Other income
Net gain on securities transactions
Total Noninterest Income
Noninterest Expenses
Salaries and wages
Pension and other employee benefits
Net occupancy expense of premises
Furniture and fixture expense
FDIC insurance
Amortization of intangible assets
Merger and integration related expenses
Other operating expenses
Total Noninterest Expenses
Income Before Income Tax Expense
Income Tax Expense
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation
Less: Net income attributable to noncontrolling interests
Net Income Attributable to Tompkins Financial Corporation
Basic Earnings Per Share
Diluted Earnings Per Share
YEAR ENDED DECEMBER 31,
2014
2013
2012
$150,966
$151,711
2
0
418
31,298
999
810
184,493
3,845
7,236
2,947
2,287
4,368
20,683
163,810
2,306
161,504
28,489
15,493
9,404
7,942
(269 )
331
0
8,984
391
70,765
69,558
21,102
12,203
5,708
2,906
2,095
0
41,121
154,693
77,576
25,404
52,172
131
$ 52,041
$3.51
$3.48
10
0
589
31,360
685
749
185,104
4,832
7,933
3,749
2,599
4,862
23,975
161,129
6,161
154,968
27,916
15,109
8,495
7,216
(538 )
555
0
10,546
599
69,898
67,200
22,164
11,757
5,701
3,214
2,197
228
40,641
153,102
71,764
20,777
50,987
131
$ 50,856
$3.48
$3.46
$124,662
32
2
744
31,232
860
824
158,356
3,322
8,910
4,451
2,094
5,436
24,213
134,143
8,837
125,306
19,421
14,340
7,441
6,030
(332 )
246
(196 )
7,534
324
54,808
51,700
18,075
8,969
4,996
2,685
1,264
15,584
34,335
137,608
42,506
11,090
31,416
131
$ 31,285
$2.44
$2.43
1 In 2014 and 2013, there were no other-than-temporary impairment (“OTTI”) charges recognized in noninterest income. In 2012, OTTI on securities available-for-sale totaling $196,000 was
recognized in noninterest income.
20 —> Two THOUSAND Fourteen | CONSOLIDATED STATE MENTS OF CONDITION
CONSOLIDATED STATEMENTS OF INCOME | Two THOUSAND Fourteen —> 21
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
TOMPKINS FINANCIAL CORPORATION BOARD OF DIRECTORS
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Frank C. Milewski
Regional President
Providence Service Corporation
Sandra A. Parker
Retired President & CEO
Rochester Business Alliance
Michael H. Spain
President, Spain Agency, Inc.
William D. Spain, Jr.
Chairman, Tompkins Mahopac Bank
Managing Partner
Spain & Spain, PC
Alfred J. Weber
President, Tweed-Weber, Inc.
Craig Yunker
Managing Partner, CY Farms
Dr. Thomas R. Rochon
Chairman
President, Ithaca College
James W. Fulmer
Vice Chairman
Stephen S. Romaine
President & CEO
John E. Alexander
Founder, The CBORD Group, Inc.
Paul J. Battaglia, CPA
Managing Director
Freed Maxick CPAs, P.C.
Daniel J. Fessenden
Executive Director
Fred L. Emerson Foundation, Inc.
Carl E. Haynes
President, Tompkins Cortland
Community College
James R. Hardie
Vice Chairman, Tompkins
Insurance Agencies, Inc.
Susan A. Henry, Ph.D.
Professor
Department of Molecular Biology
and Genetics
Cornell University
The Company’s common stock is traded under the
symbol “TMP” on the NYSE MKT LLC. The high
and low closing sale prices, which represent actual
transactions as quoted on the Exchange, of the
Company’s common stock for each quarterly period
in 2013 and 2014 are presented to the right. The
per share dividends paid by the Company in each
quarterly period in 2013 and 2014 and the payment
dates of these dividends are also presented.
Market Price
Low
High
Cash Dividends
Amount Date Paid
2013 1st Quarter
$42.59
$40.28
2nd Quarter
45.33
39.86
3rd Quarter
49.40
42.54
4th Quarter
51.61
43.52
2014 1st Quarter
$50.30
$45.42
2nd Quarter
50.81
44.90
3rd Quarter
48.78
44.04
4th Quarter
56.18
43.98
$0.38
0.38
0.38
0.40
$0.40
0.40
0.40
0.42
2/15/13
5/15/13
8/15/13
11/15/13
2/14/14
5/15/14
8/15/14
11/14/14
$3.48
$3.46
$3.36
$1.40
$1.46
$1.33
$1.62
$1.54
$3.11
$3.21
$3.20
$3.16
$2.43
0.00
10
11
12
13
Diluted Earnings1
PER SHARE IN DOLLARS
0.00
14
10
11
12
Cash Dividends
PER SHARE IN DOLLARS
13
14
1.The lighter shaded sections of the bars reflect GAAP earnings per share. The darker shaded sections in 2011, 2012 and 2013 reflect the after-tax impact of
merger-related expenses as well as other nonrecurring items. Refer to the Company’s Form 10-K for the calculation of these non-GAAP measures.
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Tompkins Financial Corporation
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
consolidated statements of condition of Tompkins Financial Corporation and subsidiaries as of December 31, 2014 and 2013,
and the related consolidated statements of income, comprehensive income, cash flows, and changes in shareholders’ equity for
each of the years in the three-year period ended December 31, 2014 (not presented herein); and in our report dated March 16,
2015 we expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying consolidated condensed financial statements is fairly stated, in all
material respects, in relation to the consolidated financial statements from which it has been derived.
Syracuse, NY
March16, 2015
22 —> Two THOUSAND Fourteen | FINANCIAL HIGHLIGHTS
TOMPKINS FINANCIAL CORPOR ATION BOARD OF DIRECTORS | Two THOUSAND Fourteen —> 23
TOMPKINS TRUST COMPANY
TOMPKINS BANK OF CASTLE
TOMPKINS MAHOPAC BANK
TOMPKINS VIST BANK
BOARDS OF DIRECTORS
Stephen S. Romaine
Chairman
President & CEO
Tompkins Financial Corporation
James W. Fulmer
Chairman
John M. McKenna
President & CEO*
Gregory J. Hartz
President & CEO
John E. Alexander
Founder
The CBORD Group, Inc.
Larry F. Baum
CEO
The Computing Center
Daniel J. Fessenden
Executive Director
Fred L. Emerson
Foundation, Inc.
Carl E. Haynes
President
Tompkins Cortland
Community College
Susan A. Henry, Ph.D.
Professor
Department of Molecular
Biology and Genetics
Cornell University
Thomas R. Rochon
President
Ithaca College
Paul J. Battaglia, CPA
Managing Director
Freed Maxick, CPAs, P.C.
Joseph G. Bucci
Co-founder & Vice Chairman
American Rock Salt Co., Inc.
Founder & Owner
Bucci Real Estate
Phillip J. Clark, P.E.
Chairman & CEO
Clark Patterson Lee
Thomas E. Cushing
Vice President
Secretary-Treasurer
J.O. Cook, Inc.
David N. DeLaVergne
Retired Senior Vice President
Tompkins Bank of Castile
John D. McClurg
President
McClurg Chrysler
Dodge Jeep, Inc.
& McClurg Chevrolet Buick, Inc.
Sandra A. Parker
Retired President & CEO
Rochester Business Alliance
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Stephen R. Stoddard, DVM
Partner
Perry Veterinary Clinic
Craig Yunker
Managing Partner, CY Farms
*Effective January 1, 2015
William D. Spain, Jr.
Chairman
Managing Partner
Spain & Spain, PC
Gerald J. Klein, Jr.
President & CEO
Alfred J. Weber
Chairman
President
Tweed-Weber, Inc.
Scott L. Gruber
President & CEO
Francis M. Fetsko
EVP, COO, CFO & Treasurer
Tompkins Financial Corporation
Edward C. Barrett, CPA
Retired EVP & CFO
VIST Bank
James W. Fulmer
Vice Chairman, Tompkins
Financial Corporation
James W. Fulmer
Vice Chairman, Tompkins
Financial Corporation
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Philip E. Hughes, Esq., CPA
Vice Chairman
Keystone Industries
C. Compton Spain
Attorney, Spain & Spain, PC
Michael Spain
President, Spain Agency, Inc.
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Frank C. Milewski
Regional President
Providence Service Corporation
Harry J. O’Neill, III
President
Empire Group
Karen A. Rightmire
President
The Wyomissing Foundation
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
TOMPKINS INSURANCE
AGENCIES, INC.
James W. Fulmer
Chairman
Vice Chairman, Tompkins
Financial Corporation
James R. Hardie
Vice Chairman
David S. Boyce
President & CEO
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Frank Vitagliano, Jr.
Senior Vice President
Tompkins Insurance Agencies
24 —> Two THOUSAND Fourteen | BOARDS OF DIRECTORS
Looking ahead.
TOGETHER.
Almost every corporation has a vision for the future.
What is less common is when that vision is truly shared—
by customers, employees, shareholders and
every facet of the organization.
At Tompkins Financial, we are looking ahead—together—
to many great things:
To strength, stability and profitability that continue to lead our industry.
To maintaining a local focus that gives individuals and businesses
the highly personal attention they deserve.
To community engagement that impacts more and more lives
in the communities we serve.
To continued growth, through opportunities in the markets we serve now
and through expansion into new territories.
It is a vision that is simple, powerful, and—most importantly—shared.
We look ahead to achieving it. Together.
TOMPKINS TRUST COMPANY TOMPKINS BANK OF CASTILE TOMPKINS MAHOPAC BANK TOMPKINS VIST BANK
TOMPKINS INSURANCE AGENCIES TOMPKINS FINANCIAL ADVISORS
TOMPKINS FINANCIAL
CORPORATION
CORPORATE OFFICERS
Stephen S. Romaine
President & CEO
Stephen M. Angelis
Executive Vice President
David S. Boyce
Executive Vice President
Francis M. Fetsko
Executive Vice President,
CFO, COO & Treasurer
Scott L. Gruber
Executive Vice President
Gregory J. Hartz
Executive Vice President
Rosemary G. Hyland
Executive Vice President,
Director of Human Resources
Gerald J. Klein, Jr.
Executive Vice President
John M. McKenna
Executive Vice President
Susan M. Valenti
Executive Vice President,
Corporate Marketing Officer
Bradley G. James
Senior Vice President,
Chief Technology Officer
Gregory H. Smith
Senior Vice President,
Corporate Risk Manager
Janet L. Hewitt
Assistant Vice President,
Corporate Administrative &
Investor Relations Officer
Kathleen A. Manley
Assistant Vice President,
Corporate Secretary
CORPORATE INFORMATION
CORPORATION OFFICE
STOCK LISTING
Tompkins Financial Corporation
P.O. Box 460
Ithaca, NY 14851
(888)503-5753
Website:
www.tompkinsfinancial.com
E-mail:
shareholder@tompkinsfinancial.com
SUBSIDIARIES
Tompkins Trust Company
P.O. Box 460
Ithaca, NY 14851
(607) 273-3210
www.tompkinstrust.com
Tompkins Bank of Castile
90 Main St.
Batavia, NY 14020
(585) 345-0122
www.bankofcastile.com
Tompkins Mahopac Bank
1441 Route 22
Brewster, NY 10509
(845) 278-1000
www.mahopacbank.com
Tompkins VIST Bank
P.O. Box 6219
Wyomissing, PA 19610
(610) 478-9922
www.vistbank.com
Tompkins Insurance Agencies, Inc.
90 Main St.
Batavia, NY 14020
(585) 344-0833
www.tompkinsins.com
Tompkins Financial Advisors
P.O. Box 6437
Ithaca, NY 14851
(607) 273-0037
www.tompkinsfinancialadvisors.com
Tompkins Financial Corporation
common stock is traded on the
NYSE MKT LLC under the symbol
TMP.
The Tompkins Financial Stock
Purchase Plan is administered by
the American Stock Transfer &
Trust Company, LLC as transfer
agent for Tompkins Financial
Corporation. It offers a convenient
way for shareholders to increase
their investment in the Company.
The plan enables shareholders to
reinvest all or part of their cash
dividends or to make optional cash
payments, with some restrictions,
in order to purchase shares of
Tompkins Financial Corporation
common stock without incurring
charges for brokerage commissions
or service charges. Shareholders
who are interested in the plan may
receive enrollment information and
a plan enrollment application by
contacting:
American Stock Transfer & Trust
Company, LLC
Toll-free number: 1-877-573-4008
Internet: www.amstock.com
Mailing address:
American Stock Transfer & Trust
Company, LLC
Attn: Dividend Reinvestment
Department
P.O. Box 922
Wall Street Station
New York, NY 10269-0560
For answers to many of your
shareholder questions or to request
forms, visit American Stock Transfer
& Trust Company’s website
www.amstock.com or contact:
American Stock Transfer & Trust
Company, LLC
Shareholder Relations
6201 15th Avenue
Brooklyn, NY 11219
Overnight address:
6201 15th Avenue
Brooklyn, NY 11219
1-800-937-5449 or 1-718-921-8200
E-mail address: info@amstock.com
Also, Tompkins Financial Stock
Purchase Plan enrollment
information can be requested and
shareholder questions answered by
contacting the Company:
Janet L. Hewitt, AVP
Tompkins Financial Corporation
P.O. Box 460
Ithaca, NY 14851
1-888-503-5753 or 1-607-274-2004
E-mail address:
jhewitt@tompkinsfinancial.com
Form 10-K
Copies of the Company’s Form
10-K (Annual Report) for 2014, filed
with the Securities and Exchange
Commission, may be obtained by
shareholders, by written request,
from Francis M. Fetsko, Executive
Vice President and Chief Financial
Officer, P.O. Box 460, Ithaca, NY
14851.
Copies can also be obtained
from our website:
www.tompkinsfinancial.com
GO GREEN
If you would like to receive
future Tompkins Financial
Corporation Corporate Reports
and proxy materials
electronically,
please follow the
instructions on your
proxy card for voting via the internet
and select the option for electronic
transmission of proxy materials.
The savings below are achieved
when PC recycled paper is used in
place of virgin fiber. This project
uses 5,076 lbs of paper which has a
postconsumer recycled percentage
of 10%.
7.5 trees preserved for the future
625 lbs waterborne waste not created
3,229 gallons wastewater flow saved
205 lbs solid waste not generated
2,728 lbs net greenhouse gases
prevented
2,237,127 BTUs energy not consumed
† Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. The investment products sold through LPL Financial are
not insured Tompkins Trust Company deposits and are not FDIC insured. These products are not obligations of Tompkins Trust Company and are not endorsed, recommended
or guaranteed by Tompkins Trust Company or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of
principal is possible. Tompkins Trust Company and Tompkins Financial Advisors are not registered broker/dealers and are not affiliated with LPL Financial.