2 THOUSAND 15
Corporate Report
E M P O W E R I N G P E O P L E .
Energizing growth.
I M A G I N I N G M O R E .
E M P O W E R I N G P E O P L E .
Energizing growth.
I M A G I N I N G M O R E .
A young couple that was empowered to create the business of their dreams.
A community that was energized when a factory was brought back to life.
A company that imagined—and then built—a development that is both
beautiful and sustainable.
These are a few of the stories you will read about in these pages—stories
that Tompkins helped make possible through our banking, insurance
and wealth management services.
Great ideas abound. And through the time-tested Tompkins ideals—strength,
stability, local decision-making and commitment to community—more
and more of those ideas are being brought to fruition.
We are proud to have played a part. And we look forward to doing it
again tomorrow.
FINANCIAL HIGHLIGHTS
IN THOUSANDS, EXCEPT PER SHARE DATA
2015
2014
% CHANGE
Total assets
Net income attributable to Tompkins Financial Corporation
Net operating income2
Diluted earnings per share
Adjusted diluted earnings per share2
Cash dividends per share
$5,689,995
$58,421
$53,985
$3.87
$3.63
$1.70
$5,269,561
$52,041
$52,041
$3.48
$3.48
$1.62
7.98 %
12.26 %
3.74 %
11.21 %
4.31 %
4.94 %
SELECTED FINANCIAL DATA
IN THOUSANDS, EXCEPT PER SHARE DATA
2015
2014
2013
2012 1
2011
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)
$5,689,995
3,772,042
4,395,306
536,285
516,466
188,746
20,365
168,381
2,945
1,108
$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 $3,400,248
1,981,849
2,954,610
2,660,564
3,950,169
186,075
111,848
299,143
441,360
137,088
158,356
25,682
24,213
111,406
134,143
8,945
8,837
396
324
58,421
52,041
50,856
31,285
35,419
3.91
3.87
3.63
1.70
34.48
27.42
1.07 %
11.51 %
9.31 %
43.48 %
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
3.21
3.20
3.21
1.40
26.89
22.58
0.76 %
8.30 %
9.21 %
59.84 %
1.07 %
12.02 %
8.94 %
43.61 %
998
63
85
1,000
65
85
989
66
84
839
66
83
719
45
63
$3,852,972 $3,761,972 $3,443,636
$3,240,782 $2,780,622
1 Includes the impact of the acquisition of VIST Financial on August 1, 2012.
2 Adjusted diluted earnings per share and net operating income reflect adjustments made for certain nonrecurring items. Adjustments for nonrecurring items in 2015 included a $(3.6)
million after-tax gain on a pension plan curtailment. There were no adjustments in 2014, 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. Adjusted diluted earnings per share and net operating income are non-GAAP measures that management believes provide
management and investors with information that is useful in understanding the Company’s financial performance and condition. Refer to the Company’s Form 10-K for the calculation
of these non-GAAP measures.
3 Tangible equity capital is used to calculate tangible book value per share and excludes from shareholders’ equity goodwill and other intangibles of $104.2 million in 2015, $106.9
million in 2014, $108.4 million in 2013, $110.9 million in 2012, and $48.0 million in 2011. 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.
FI NAN CIAL H I G H LI G HTS | 1.
D E A R F E L L O W
shareholders
Achieving success is rarely easy.
What is even more difficult is
achieving success that is consistent
with our strategy of long-term,
sustainable results, and doing it
year after year. We are pleased to
report that, through the work of
our employees, the support of
our shareholders and the trust
of our customers, Tompkins
Financial achieved our highest
earnings ever, making
it our
third consecutive year of record
earnings. By empowering people,
we have energized growth—and
we are imagining even more for
the future.
With adjustments for a non-recurring item which helped our
2015 results, diluted earnings per share were up 4.3% over
the year ended December 31, 2014. Loans and non-interest
bearing deposits were two key drivers of earnings in 2015, with
both up over 11% from last year. Our fee-based businesses,
Tompkins Financial Advisors and Tompkins
Insurance
Agencies, made strong contributions to our earnings. We also
continued to see very positive trends in the improvement
of asset quality and the reduction of our already low level of
troubled loans.
Last year, we saw a level of market disruption that was
unprecedented in the regions we serve. In Pennsylvania,
seven local competitors announced they would be acquired.
Mergers were also announced in many of our other
2. | M E SS AG E TO SHAR EH O LD ER S
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
communities. We expect this activity to intensify in 2016. This
We had several important changes to our Senior Leadership
climate of change is unsettling for customers, but it represents
Team in 2015. Rosemary Hyland retired after 15 years with
a great opportunity for us. Past experience shows that
our Company. She served most recently as Executive Vice
customers are most at risk when their banks are merging. At
President and Director of Human Resources. We are grateful
times like this, our Company’s values—outstanding strength,
to Rosemary for her tireless dedication and for helping our
long-term stability, local decision-making and community
human resources function reach new heights. We wish her
commitment—are a breath of fresh air to potential customers.
all the best in her retirement. Stepping into Rosemary’s role
is Bonita Lindberg, who joined Tompkins on December 28.
Through the Power of Partnership program, we have built
Bonita comes to us from Cortland Regional Medical Center
a high level of trust—and a growing number of referrals—
and Albany International Corporation. Alyssa Fontaine joined
among our various businesses. Bank employees, insurance
Tompkins Financial as Executive Vice President and General
producers and wealth advisors regularly refer customers to
Counsel on January 1, 2016. Most recently, Alyssa was a
one another, helping customers achieve their goals while
partner at Harris Beach PLLC, where she focused on corporate
developing confidence in our business lines. The continued
growth of our banks, of Tompkins Financial Advisors† and of
Tompkins Insurance Agencies, is largely due to the success of
this program.
transactional work, bank regulatory compliance and securities
matters.
It is always encouraging to speak of the incredible community
involvement demonstrated by our organization. In 2015, we
Our central presence in Ithaca is an important part of our
saw this commitment continue to grow. More and more of
history—and was key to our decision to develop a new
our employees reached out to those in need—by serving
headquarters building in downtown Ithaca. While still in
in leadership roles, by volunteering their time and talents,
the early stages of planning, this building will enable us to
by organizing and participating in events and by giving of
consolidate people and departments from seven different
themselves in countless ways. While these activities help our
locations throughout Ithaca, enhancing productivity and
organization’s reputation, that is rarely the motivation behind
creating closer working
relationships. The seven-story
them. Our people give of themselves simply because it is the
building—located just one block from the Ithaca Commons—
right thing to do. It is an honor to work with people who
will bring 300 employees together under one roof.
exhibit such selflessness. They are making our world a better
We continue to innovate and add new technology to meet
place.
our customers’ rapidly evolving needs. Our mobile banking
We invite all of our shareholders to join us for our Annual
services expanded in 2015 with the addition of Mobile Check
Meeting. The meeting will be in Central New York on May
Deposit for businesses. As with all of our mobile and web-
9 at 5:30 p.m. at the Country Club of Ithaca. Shareholder
based products, we are committed to rolling out products
information meetings will be held in our other regions. In
that work well right at introduction. Business Mobile Check
Western New York, we will meet on May 17 at 5:30 p.m. at
Deposit was no exception. With this addition, our customers
the Genesee Country Village & Museum in Mumford. In
now have more complete functionality to bank the way they
Pennsylvania, our meeting will be on May 24 at 4:30 p.m. at
want to.
the DoubleTree Hilton in Reading. And in the Hudson Valley,
we will meet on May 26 at 6:00 p.m. at the Mt. Kisco Country
One significant change this year will be our switch from VISA
Club. We look forward to seeing you at one of these meetings.
to MasterCard for our debit card services. This change will
provide customers with many new and important benefits,
Thank you for all of your support throughout 2015. We
such as EMV chips for enhanced security, Identity Theft
appreciate your feedback, your ideas, your encouragement
Resolution Services, and Zero Liability for unauthorized
and your trust. It was truly a remarkable year. We look forward
purchases. These expanded benefits give our customers the
to working with you to extend this outstanding record of
protection they need. The rollout of Debit MasterCard has
success well into the future.
been carefully planned to provide customers with a seamless
transition. It will take place throughout the first half of the year.
M E SS AG E TO SHAR EH O LD ER S | 3.
It’s no simple matter to make great
cider. For Melissa Madden and Garrett
Miller, the process began in 2008 when
they started Good Life Farm. “It’s
very labor intensive,” says Melissa
of their certified organic farm. “We
plant 300 apple trees a year.” That
undertaking has gradually transformed
an open cornfield into a thriving apple
orchard. The couple dreamed of having
a cider house in the middle of their
orchard—a dream that became a reality
this past year. “Our assets were tied
up in our farm,” says Melissa. “But
Tompkins Trust Company loaned
us the full amount we needed for
the equipment. We couldn’t be
making our cider here without
them.” Melissa and Garrett also rely
on Tompkins Insurance Agencies for
policies on both their farm and the
cider house. “They’re extremely easy
to work with,” says Melissa. “They’re
truly part of our team.”
MELISSA MADDEN & GARRETT MILLER
Owners
Good Life Farm, Finger Lakes Cider House
4. | CENT R AL N EW YO R K
The Central New York region experienced
another very strong year in 2015. We
enjoyed growth in every area of our
business. It was gratifying to see the great
successes achieved both by our customers
and our employees.
One of the biggest stories of the year is our
expansion into the Syracuse area. We have already
been servicing many clients in this region through
our Auburn and Cortland branches. Our new
Tompkins Financial Center office at Lyndon
Corners, Fayetteville—scheduled to open in the
second quarter of 2016— will provide our full
experienced a strong reception from the ag
line of services in banking, insurance and wealth
community since making this a major focus
management.
In 2015, we grew our outstanding loan balances
by 10%. Our commercial, small business and
residential lending all exceeded their business
two years ago. Our knowledgeable advisors are
helping farms and farmers to be more successful,
while also helping the economic vitality of the
region overall.
objectives. We also experienced solid core
We were excited to see the re-opening of the
deposit growth for the year. We credit our
Ithaca Commons. Tompkins Trust Company was
exceptional people and local decision-making
a major supporter of the two-year renovation
for these impressive achievements.
project. We offered a special loan program
Agricultural business continues to be a great
success story in Central New York. We have
for businesses to help with short-term cash
flow during the construction period. We
CENT R AL N EW YO R K | 5.
13
also provided funding for a new children’s
Agencies continued to improve efficiencies
playground and for the Bernie Milton Pavilion,
throughout Central New York last year. The
named for a beloved Ithaca musician. The
Customer Care Center model helped to route
Commons provides a beautiful new shopping
calls more quickly, for continued high customer
presence for Ithaca, and we are proud to be right
satisfaction. Tompkins Financial Advisors held
in the middle of it.
numerous business development lunches with
Tompkins Insurance Agencies and Tompkins
Financial Advisors will both expand into the
Syracuse area in 2016, following the bank’s
movement into that region. Tompkins Insurance
law firms and accounting firms, helping us
reach many new customers. Along with the
other regions, we surveyed customers across
the Tompkins footprint, helping to identify
opportunities for service improvement.
6. | CENT R AL N EW YO R K
Andy and Hemant Patel—
developers of 38 hotels in New
York State and Pennsylvania—
believe in keeping things local. “We
host a holiday festival in every
community where we have a
hotel,” says Andy. “There’s no
charge, and every child gets a
present.” Their local focus made
Tompkins Trust Company a natural
choice. “We have had tremendous
success partnering with them,”
says Andy. When the partners
encountered challenges in getting a
loan for a project in Utica, Tompkins
Trust Company stepped in to make
it happen. “They always come
through for us,” adds Hemant.
Andy, whose foundation helped
revitalize five schools where he grew
up in India, especially appreciates
Tompkins’ community involvement.
“It’s great to work with people
who care about more than just
money,” says Andy.
ANDY & HEMANT PATEL
Managing Partners
Visions Hotels
CENT R AL N EW YO R K | 7.
Central New York once again had a very active
year in community support. We provided gifts
of time and money to more than 200 charitable
organizations throughout the area. It is amazing
to be part of an organization that not only
achieves great things as a business, but also
makes a significant impact on the community.
Thank you to all the exceptional people who go
above and beyond to make this possible.
The Town of York’s relationship with
Tompkins Bank of Castile started
simply enough. “They had the
lowest rates,” says Jerry Deming,
Town Supervisor for the last 16
years. Those low rates helped the
town finance important upgrades
to their infrastructure, getting fresh
water to homes and dairy farms that
needed it—a key to the community’s
economic health. Jerry was impressed
with the personal service he received.
“We had an emergency on one
project,” he says. “They came in
on a Saturday to help us get the
paperwork completed.” The town
now works with Tompkins Insurance
Agencies as well. “I can’t say enough
good about them,” he says. “We
still do our due diligence, making
sure we are getting the best rates.
And Tompkins always comes
through for us.”
JERRY DEMING
Town Supervisor
Town of York
8. | WE ST ER N N EW YO R K
Western New York had another year of
strong performance in 2015. We achieved
record earnings, and our long-term
commitment to this region yielded
important growth on several fronts.
Tompkins Bank of Castile had nearly $250 million in
total loan originations last year. We made excellent
progress in agricultural, commercial and real
estate lending. Customers continue to appreciate
our community-banking model, especially as
competitors shift focus and resources away from
our traditional geographies.
Tompkins Bank of Castile had over a dozen new
of the county and providing another important
or greatly expanded relationships with cities,
point of service for our clients.
towns, villages and school districts throughout
Western New York, helping municipal banking
deposits rise by 62%. The reputation of our
bank and of our employees as individuals, puts
us in an excellent position to partner with
many municipalities that are central to the
communities we serve.
We finished renovations on our new Customer
Care Center in Batavia. This site centralizes
customer service operations for all Tompkins
banks and Tompkins Insurance Agencies, helping
to improve both efficiency and customer
satisfaction. It also helps support growth in
the Pennsylvania insurance business while
We also made great progress in Monroe County.
positioning us for future growth opportunities.
The addition of our Pittsford Tompkins Financial
Center, offering banking, insurance and wealth
management, is providing outstanding visibility.
It is attracting new business from the east side
Important progress occurred with the Western
New York STAMP project. This business park
in Genesee County represents a tremendous
W E ST E R N N EW YO R K | 9.
opportunity for our region, our bank and our
regions. Customer claim satisfaction remains
insurance agency. It combines infrastructure
extremely high at 99.7%. We also expanded in
and incentives to attract companies in
Batavia through the acquisition of Shepard,
nanotechnology, advanced manufacturing
Maxwell & Hale Insurance, effective January 1,
and bio-manufacturing. The park’s first tenant
2016.
announced plans to build a plant that will
eventually employ 1,000 workers.
Tompkins Financial Advisors and Tompkins
Bank of Castile continued to build important
Tompkins Insurance Agencies continued
relationships between bankers and wealth
to improve efficiencies and effectiveness in
managers. As a result, we saw significant wealth
Western New York and throughout all of its
management gains from a much broader
10. | WE ST ER N N EW YO R K
Pete Zeliff never thought he would
own a shoe company. But when P. W.
Minor—a Batavia shoe manufacturer
with a 148-year history—was in
danger of closing its doors forever,
he saw an opportunity he couldn’t
pass up. “I wanted to resurrect
the company,” says Pete. After
purchasing the company’s assets,
he ordered $2 million worth of new
equipment and started bringing all of
the production back to Batavia. He
relied on Tompkins Bank of Castile
for a line of credit and for all of the
company’s banking and checking
accounts. “They’re like a small
town bank,” says Pete. “But they’ve
got an appetite for a lot more
than what a small town bank can
do.” And that has helped Pete keep a
small town shoe manufacturer alive
while saving more than 50 local jobs.
PETE ZELIFF
CEO
P.W. Minor
W E ST E R N N EW YO R K | 11.
customer base, including previously untapped
geographies.
Our employees in Western New York performed
more than 13,000 hours of community service
in 2015, supporting scores of community
organizations. It is inspiring to see the deep
community involvement of our employees, and
we are proud to support their efforts.
Al Lucchino has some expertise in
choosing the right bank to support
a growing business. Before he and
his brother, Carl, purchased their
Harley Davidson dealership, Al was a
vice president in charge of leveraged
buyouts at a NYC bank. “We had
worked with some other banks,”
says Al. “But we wanted to grow and
expand. And we needed a more
capable, larger lender.” Making the
switch to Tompkins Mahopac Bank
changed things dramatically. “Our
refinancing reduced debt and
freed up cash,” says Al. As a result, the
brothers were able to greatly expand
their selection of motorcycles, parts
and accessories. The company now gets
a complete range of banking services
from Tompkins Mahopac. “They’re
smart and they have the capacity to
get the job done,” says Al. “And that
lets you focus on your business.”
CARL AND AL LUCCHINO
Owners
Harley Davidson of Danbury
12. | HUD S O N VALLEY
With double-digit loan growth and strong
deposit growth, Tompkins Mahopac Bank
had the most profitable year in its history.
Our exceptional employees and strong
leadership team helped us build on our
successes from the previous year.
Bank merger activity in the Hudson Valley region
created new opportunities for us in 2015. While
many banks were changing, Tompkins Mahopac
Bank provided an excellent alternative: a bank that
provides local decision-making and the highest
level of personalized service. We gained new
business, often through referrals from existing
customers, CPAs and attorneys who knew
experienced success with programs such as First
us and trusted us to “stay the course.” It is
Home Club and Community One, which help
interesting to note: Tompkins Mahopac Bank
to make home buying more affordable.
continues to receive a 5-star rating (superior) by
Bauer Financial—a rating higher than many of
our larger competitors.
In commercial lending, we saw a significant
increase in new activity during the second half
of the year. Some of this was attributable to
Tompkins Mahopac Bank had a significant
the growth in the regional economy and to
increase in residential loan originations
the market disruption caused by bank merger
throughout 2015. With home purchase activity
activity in our area. We have an excellent
increasing in our region, we expanded our
reputation in the communities we serve, and
outreach to first-time home buyers, offering
businesses and professionals turned to us for
seminars, programs and information through
our long-term stability in this environment of
various housing agencies in our region. We also
change.
H UD S O N VALLEY | 13.
Credit quality continued to improve as we
Tompkins Financial Advisors had a solid
experienced a further reduction in problem
year, with continued growth of assets under
loans. Our improving economy was one factor
management. The Power of Partnership
in this success. More importantly, we have
program is a key component in this success. We
maintained our commitment to working with
have worked hard to build close relationships
our borrowers during challenging times in an
between our bankers and wealth advisors. As a
effort to get them back on their feet. As a result,
result, they do not hesitate to make referrals to
we have done more than improve credit quality.
one another, helping customers understand the
We have also built our reputation as bankers
full breadth and depth of our services.
who care about the local communities we serve.
14. | HUD S O N VALLEY
National Resources does not
mince words when it comes to
speaking about Tompkins Mahopac
Bank. “When the financial
crisis occurred in 2008, a lot
of the other banks vanished,”
says Joe Cotter. “But Tompkins
Mahopac stepped up. That level
of loyalty is a game-changer.”
With Tompkins’ support, National
Resources has created stunning
redevelopments that are successful
and sustainable. Most recently, the
bank provided financing for Hudson
Harbor, a luxury residential and retail
community on the Hudson River
with a beautiful view of Manhattan
and where residents don’t even
need a car. “Tompkins has always
been there for us,” says Lynne
Ward. “They have that small
bank feel. But they also have the
capacity to do the larger loans
we need.”
JOE COTTER AND LYNNE WARD, Partners
National Resources
PAUL JANOS, Director of Sales
Hudson Harbor
H UD S O N VALLEY | 15.
We continued to give back to more than 175
charitable organizations throughout our region,
providing both volunteer efforts and financial
support. It is inspiring to see the way our
employees step up to give their time, energy
and leadership to charitable organizations in
our communities. Many banks claim to be
community-oriented; our people consistently
prove it. Thank you, once again, for making us
proud.
Settlement Music School in
Philadelphia was founded on the
belief that everyone should have
the opportunity to learn through
music. The school provides
over 10,000 lessons, classes and
activities per week without
regard to age, race or financial
circumstances. “We remove the
barriers to participation,” says
Helen Eaton, Executive Director.
“And Tompkins helps us to do
that.” After years of depending on
Tompkins Insurance for medical,
dental, life and disability insurance,
the school recently turned to
Tompkins VIST Bank to refinance
a large loan. “They helped us
reduce our debt service by 60%,”
says Helen. “And the money we
saved is being used to help
families that need our financial
help. It’s been a phenomenal
experience.”
HELEN EATON
Executive Director
Settlement Music School of Philadelphia
16. | S O UT H E A ST ER N PEN NSYLVAN IA
Southeastern Pennsylvania made great
strides forward in 2015. We experienced
impressive growth in lending and deposits,
and we saw ongoing improvement in asset
quality. The exceptional efforts of our team
resulted in Tompkins VIST Bank receiving
a 5-star rating—the best possible rating—
from Bauer Financial to start the new year.
Tompkins VIST Bank had excellent growth in
mortgage originations last year, thanks to a strong,
dynamic team of talented professionals. We placed
an emphasis on balanced organic loan growth in
commercial, small business and agricultural lending.
2015 was our first year of agricultural lending, and
this new undertaking saw tremendous success.
it represents a great opportunity for Tompkins
With an experienced ag lender to lead this new
VIST Bank. As large, out-of-area banks move
line of business, we were able to develop many
in, we will continue to emphasize our local
new banking relationships. Agriculture is the
decision-making, highly personal service and
largest industry in Pennsylvania, and we expect
community orientation. Our local approach
continued strong growth in this area.
provides a powerful alternative to the rigid
The improvement of asset quality has been
a primary focus since the acquisition of VIST
playbook offered by larger banks, and we expect
to gain customers as these changes occur.
Bank three years ago. We have made incredible
Tompkins Insurance introduced a new 24-hour
progress in reducing troubled loans and
Customer Care Center to handle claims
improving credit quality.
processing, policy changes, billing questions,
In 2015, seven of our local competitors
announced that they would be acquired. This
level of market disruption is extraordinary, and
quotes and more. Consistent with our New York
model, we co-located with the bank in two
locations, Sinking Spring and Conshohocken, to
S O UT H E A ST ER N PEN NS YLVAN IA | 17.
bring our customers increased access to personal
financial planning capabilities with the eMoney
insurance. We implemented the Core Business
tool. Along with the other regions, we helped to
Unit in Pennsylvania to deliver a heightened
create over 200 new financial plans for new and
service level to our small- and medium-sized
existing clients using this powerful new tool.
business customers, with overwhelmingly
positive customer feedback.
One of the most exciting changes in our
region is the way our people have embraced
Tompkins Financial Advisors developed and
community involvement. Our employees are
instituted a new strategy for offering trust
stepping up and working for a great variety
services in Pennsylvania. We also increased our
of organizations, whether acting in leadership
18. | S O UT H E A ST ER N PEN NSYLVAN I A
“Sixty-seven years ago, my
great grandfather won this
business in a poker game,” says
Deb Kearse. “And we continue
to do things just a little bit
differently.” Deb and her husband,
Tom, believe in providing services
no one would expect from a
building supplies company—like
continuing education classes for
architects. So it was no surprise
that they wanted an equally
innovative banking partner. “We
made a list of seven things we
needed in a bank,” says Tom.
“And Tompkins VIST Bank was
seven for seven.” For example,
Tompkins makes it easy for
the business to quickly process
checks at nine different locations.
“They’ve made our lives easier,”
says Tom. “This was a great
move for our company and
ourselves.”
DEB & TOM KEARSE
Owners
Kohl Building Products
S O UT H E A ST ER N PEN NSY LVAN IA | 19.
capacities or serving on the front lines. While
this creates a great name for us in our region,
that is not our motivation. Serving the
communities where we live is just the right
thing to do. Thank you, to all our employees, for
reaching out to help those people who need us
most. It is an inspiring thing to see.
CONSOLIDATED STATEMENTS OF CONDITION
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 $1,390,255 at December 31,
AS OF DECEMBER 31,
2015
2014
$56,261
1,996
58,257
$53,921
2,149
56,070
7,368
8,992
2015 and $1,397,458 at December 31, 2014)
1,385,684
1,402,236
Held-to-maturity securities, at amortized cost (fair value of $146,686 at December 31, 2015
and $89,036 at December 31, 2014)
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
146,071
3,310,768
14,031
447,243
32,004
3,740,038
158
29,969
60,331
75,792
91,792
12,448
82,087
$5,689,995
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
2,401,519
855,133
1,138,654
4,395,306
2,247,708
898,081
1,023,365
4,169,154
Federal funds purchased and securities sold under agreements to repurchase
136,513
147,037
Other borrowings, including certain amounts at fair value of $10,576 at December 31, 2015
and $10,961 at December 31, 2014
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:
15,015,594 at December 31, 2015; and 14,931,354 at December 31, 2014
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, at cost – 116,126 shares at December 31, 2015, and 111,436 shares
at December 31, 2014
Total Tompkins Financial Corporation Shareholders’ Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
536,285
37,509
67,916
$5,173,529
356,541
37,337
69,909
$4,779,978
1,502
350,823
197,445
(31,001 )
(3,755 )
515,014
1,452
$516,466
$5,689,995
1,493
348,889
165,160
(24,011)
(3,400)
488,131
1,452
$489,583
$5,269,561
20. | CO NS O LI DAT ED STAT E MENTS O F CO N D IT I O N
CONSOLIDATED STATEMENTS OF INCOME
IN THOUSANDS, EXCEPT PER SHARE DATA
Interest and Dividend Income
Loans
Due from banks
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 $250,000 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
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,
2015
2014
2013
$154,636
$150,966
4
352
29,525
3,100
1,129
188,746
1,367
9,084
2,709
2,308
4,897
20,365
168,381
2,945
165,436
29,286
15,416
9,325
7,837
(295 )
385
8,878
1,108
71,940
72,707
16,025
12,312
6,146
2,992
2,013
0
37,667
149,862
87,514
28,962
58,552
131
$ 58,421
$3.91
$3.87
2
418
31,298
999
810
184,493
1,370
9,711
2,947
2,287
4,368
20,683
163,810
2,306
161,504
28,489
15,493
9,404
7,942
(269 )
331
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
$151,711
10
589
31,360
685
749
185,104
3,000
9,765
3,749
2,599
4,862
23,975
161,129
6,161
154,968
27,916
15,109
8,495
7,216
(538 )
555
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
CO NS O LI DAT ED STAT E M ENTS O F I N COM E | 21.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Price
Low
High
Cash Dividends
Amount Date Paid
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 2014 and 2015 are presented to the right. The
per share dividends paid by the Company in each
quarterly period in 2014 and 2015 and the payment
dates of these dividends are also presented.
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
2015 1st Quarter
$54.57
$50.91
2nd Quarter
55.48
50.65
3rd Quarter
55.45
50.81
4th Quarter
62.78
52.70
$3.87
$3.63
$3.48
$0.40
0.40
0.40
0.42
$0.42
0.42
0.42
0.44
$1.62
2/14/14
5/15/14
8/15/14
11/14/14
2/17/15
5/15/15
8/17/15
11/16/15
$1.70
0.00
0.00
Diluted Earnings1
PER SHARE IN DOLLARS
Cash Dividends
PER SHARE IN DOLLARS
1.The lighter shaded sections of the bars reflect GAAP earnings per share. The darker shaded sections in 2011, 2012, 2013 and 2015 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, 2015 and 2014,
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, 2015 (not presented herein); and in our report dated March 15,
2016 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.
Rochester, NY
March 15, 2016
22. | FI NAN CI AL H I G H LI G HTS
TOMPKINS FINANCIAL CORPORATION BOARD OF DIRECTORS
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Frank C. Milewski
VP Regional Operations
Pathways
Sandra A. Parker
Retired President & CEO
Rochester Business Alliance
Michael H. Spain
Executive Vice President
Brown & Brown
Alfred J. Weber
President, Tweed-Weber, Inc.
Craig Yunker
Managing Partner, CY Farms
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
Susan A. Henry, Ph.D.
Professor,
Department of Molecular Biology
and Genetics
Cornell University
TOM PKI NS FI NAN CIAL CO R P O R AT I O N B OAR D O F D I R ECTO R S | 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
Founder
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.
Phillip J. Clark, P.E.
Chairman
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
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
Executive Vice President,
COO, CFO & Treasurer
Tompkins Financial Corporation
Edward C. Barrett, CPA
Retired EVP & CFO
VIST Bank
James W. Fulmer
Vice Chairman, Tompkins
Financial Corporation
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
C. Compton Spain
Attorney, Spain & Spain, PC
James W. Fulmer
Vice Chairman, Tompkins
Financial Corporation
Philip E. Hughes, Esq., CPA
Vice Chairman
Keystone Industries
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Michael H. Spain
Executive Vice President
Brown & Brown
Frank C. Milewski
VP, Regional Operations
Pathways
Harry J. O’Neill, III
President
Empire Group
Karen A. Rightmire
Executive Director
The Wyomissing Foundation
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
TOMPKINS INSURANCE
AGENCIES, INC.
James W. Fulmer
Chairman
Vice Chairman, Tompkins
Financial Corporation
David S. Boyce
President & CEO
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Frank Vitagliano, Jr.
Senior Vice President
Tompkins Insurance Agencies
24. | B OAR D S O F D I R ECTO R S
TOMPKINS FINANCIAL
CORPORATION
CORPORATE OFFICERS
Stephen S. Romaine
President & CEO
David S. Boyce
Executive Vice President
Francis M. Fetsko
Executive Vice President,
COO, CFO & Treasurer
Alyssa H. Fontaine
Executive Vice President &
General Counsel
Scott L. Gruber
Executive Vice President
Gregory J. Hartz
Executive Vice President
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
Bonita N. Lindberg
Senior Vice President,
Director of Human Resources
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 2015, 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 5,761 lbs of paper which has a
postconsumer recycled percentage
of 10%.
75 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
† Investment Services provided through Tompkins Wealth Advisors. Trust and Estate Services provided through Tompkins Trust Company.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or
its licensed affiliates. 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, Tompkins Financial Advisors and
Tompkins Wealth Advisors are not registered broker/dealers and are not affiliated with LPL Financial.