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~ocall y FOCUSED.
A world of POSSIBILITIES.
The simplest ideas often have the most profound implications.
Tl~e ideas that are central to Tompkins Financial Corporation can
be summed up in fewer than a dozen words: Local. Community-
focused. Personal. Strong. Stable. Forward-thinking.
These are truly simple ideas. But we are struck by the "world of
possibilities" they have helped us to realize:
An organization that is respected both locally
and nationally.
Lives and businesses that have been powerfully
impacted for the better.
Financial results that are among the best in
the industry.
Customers who are empowered through the
latest technology and innovations.
Communities that are equipped to do more
good for more people.
It might cause one to wonder how such things came to be.
But in the end, it should come as no surprise that the simplest,
most focused ideas are also the most powerful ones.
IN THOUSANDS. EXCEPT PER SHARE DATA
Total assets
Net income attributable to Tompkins Financial Corporation
Diluted earnings per share
Adjusted diluted earnings per share (Non-GAAP)'
Cash dividends per share
2016
2015
%CHANGE
56,236,756
55,689,995
$59,340
$58,421
$3.91
53.91
$1.77
$3.87
$3.63
$1.70
9.61
1.57
1.03 ~o
7.71
4.12 %
IN THOUSANDS, EXCEPT PER SHARE DATA
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 share (Non-GAAP)'
Cash dividends per share
Common equity per share
1
2016
t'
2015
2014
2013
2012'
56,236,756
$5,689,995
$5,269,561
$5,003,039
$4,837,197
4,258,033
4,625,139
3,772,042
3,393,288
4,395,306
4,169,154
3,194,284
3,947,216
2,954,610
3,950,169
884,815
549,405
202,739
22,103
180,636
4,321
926
536,285
516,466
188,746
20,365
168,381
2,945
1,108
356,541
489,583
184,493
20,683
163,810
2,306
391
331,531
457,939
185,104
23,975
161,129
6,161
599
111,848
441,360
158,356
24,213
134,143
8,837
324
59,340
58,421
52,041
50,856
31,285
3.94
3.91
3.91
1.77
36.20
3.91
3.87
3.63
1.70
34.38
27.48
3.51
3.48
3.48
1.62
32.77
25.66
3.48
3.46
3.36
1.54
30.45
23.67
2.44
2.43
3.16
1.46
30.57
22.94
Tangible common equity per share (Non-GAAP)3 29.38
Selected Ratios
Return on average assets
Return on average equity
Average shareholders' equity to average assets
Dividend payout ratio
Other Selected Data
w vL'Hc-rL f. ~vurotAERS, 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)
1.01 %
1.07 %
1.03 %
10.85 %
9.28 %
11.51 %
10.76 %
931 %
9.54 %
1.03 %
11.47 %
9.00 %
0.76 %
8.30 %
9.21 %
44.92 %
43.48 %
46.15 %
44.25 %
59.84 %
1,019
66
85
998
63
85
1,000
65
85
989
G6
84
839
66
83
$3,941,484
$3,852,972
$3,761,972
$3,443,636
53,240,782
7 Adjustea diluted earnings per share reflec[s adjustments made Jar certain nonrecurring items, including merger and integration expenses. Adjustments for nonrecurring items in 2075
included a 53.6 million (50.24 per share) after-tax gain an a pension plan curtailment There were no adjustments in 2016 and 2014.2013 included an 5846,000 (50.06 per share) after-
taxgain on the redemption of bust preferred stock and a 5771,000 (50.05 per share) after-tax gain on a deposit conversion. Also, in 2013, and 2012, after-tax merger related expenses
totaled 5740,000 (50.01per share), and 59.7 million (50.75 per share), respectively. There was also an after-tax gain related to a VISA accrual adjustment of 5243,000 (50.02 per shape) in
2012. Adjusted diluted earnings per share is a non-GAAP measure.
2 Includes the impact of the acquisition of VIST Financial on August 1, 2012
3 Tangible common equity capital is used to calculate tangible common equity per share and excludes from shareholders' equity goodwill and other intangibles o/51032 million in
2016 5704.2 million in 2015, 5706.9 million in 2014, 5108.4 million in 2013, and 5170.9 million in 2072
1
2016 Corpora~e Repor~ ~ Financial Highlights
Message from Tom Rochon
and Steve Romaine
2016 was another exceptional year for Tompkins
Financial. We enjoyed our fourth consecutive year of
record earnings, and we ended the year with the best
fourth quarter in our Company's history. Earnings per
share were also our highest ever at $3.91.
There were many financial highligh~s in 2016. Loans grew by 12.9%over the previous
year. We ended the year with total loans of $43 billion. At the end of 2016, ~~~~ h~~
a decrease of 7.8% in nonperforming assets from 2015. To have such sut
loan growth while simultaneously improving credit quality is a testamen~
employees who make smar~, local credit decisions each day.
We surpassed $6 billion in ~o~al assets as we continued to place a heavy
emphasis on deposits. Deposi~s were up 5.2% over 2015. Deposit growth
will con~inue co bean important part of our business as we grow loans
amid potentially rising rates. While deposi~ growth is excellent, we
have also added a deposit growth ini~iaCive to our strategic plan to
better position ourselves for the future.
Our fee-based businesses, Tompkins Financial Advisorst and
Tompkins Insurance Agencies, were strong contributors Co our
overall business. More impor~antly, Their resul~s were achieved
while remaining focused on what is bes~ for our customers. Our
reputation for integrity is one of the biggest reasons customers nog
only stay wish us. but also turn ~o us for more and more of their
financial needs.
Such values are the cornerstone of our Company. Honesty, integrity,
respect and collaboration inform everything we do. These values
differentiae us from our competitors —and They are one of the
keys to our ongoing financial performance. We are commiCted
to maintaining our high e~hical standards in every aspect of
our business.
2016 Corpora~e Report ~ Message to Shareholders
2
~c.~-~
Dr. Thomas R. Rochon
CHAIRMAN
S~ephen S. Romaine
PRESIDENT &CEO
recognized financial services organizations. Brian will also be serving
In )uly, we welcomed Brian Howard as she new President of The MasterCard transition was just one of our efforts to improve
cybersecurity —bosh for our customers and for our Company.
Tompkins Financial Advisors. Brian brings with him more than
30 years of banking and leadership experience with nationally Cyber attacks on the financial services industry are becoming more
sophisticated and persistent. We are commit~ed to protecting every
Hype of information that is at risk. Our Informa~ion Security Program
is based on three central tenets: attracting and retaining she best
information securi~y ~alen~, continually improving our policies and
procedures, and investing in proper technology. The importance of
this pursuit cannot be understated, and we will continue to make it
as a member of the senior leadership team for Tompkins Financial
The construction of our new headquarters building is underway.
Corpora ion. We are pleased and excited to have Brian with us.
The decision co build it in the heart of Ithaca underscores our
longstanding commitment to this city's downtown. The building atop priority for our Company.
will consolidate employees from seven difFerent locations in Ithaca,
helping to create significant workplace efficiencies. Over 300
employees will work here, including team members from Tompkins
Financial Advisors and Tompkins Insurance Agencies. The first Aoor
will house Tompkins Trust Company's first Branch of the Future,
which will use technology and personalized service co enhance the
customer experience. The building is slated to open in April of 2018.
In 2016, we laid the groundwork foran important newonline lending
service called Lightning Loans. I~ will give small businesses a faster and
easier way to get the loans they need. A simple online interface will
walk customers Through the application process in minutes. Lending
decisions will still be made in each of our local geographies, buy will
be assisted by technology chat will help us to expedite she decision
process. This new approach to lending fits with the desire of our
cus~omers to do more and more of their banking online, while still
leveraging our differentia~or of local decision-making. The rollout of
Lightning Loans cook place in the first quarter of this year.
We comple~ed the switch to Debi Mas~erCard with the EMV chip
for enhanced security. The shift, which took place during the first half
of 2016, was essential for she protection of our customers. I~ provides
crucial new benefits, such as Iden~iry Theh Resolution Services and
Zero Liability for unauthorized purchases.
There are many big issues impac~ing our industry, and we are
committed to being a voice co help guide it. We were pleased to
see Steve Romaine elected Chairman of the New York Banker's
Association in 2016. He is dedicated to being a strong and sable
presence in support of the banking industry.
We invite all of our shareholders to join us for our Annual Meeting.
We will hold the Annual Meeting of Shareholders on May 8 at 530
p.m. ac the Country Club of Ithaca. The Shareholder Information
Meeting for western New York will be held on May 10 at 530
p.m. ac she Genesee Country Village &Museum in Mumford.
The Shareholder Information Meeting for Pennsylvania will be on
May 23 at 430 p.m. at the Double Tree Hilton in Reading. And the
Shareholder Information Meeting for she Hudson Valley region will
be on May 25 at 6:00 p.m. at the Mt. Kisco Country Club. We look
forward co seeing you at one of these mee~ings.
There are many factors that go into our success year after year: our
values, our commitment to local decision-making, and our support
of the communities we serve. But nothing is more important Shan
our people and their s~eadfas~ resolve to do the right thing for our
customers. The numbers in this report, while impressive, are only
an indicator of she countless people and businesses our employees
have helped to prosper and flourish.
3
2016 Corporate Report ~ Message to Shareholders
Central New York
In September of 2016, Tompkins Trust Company opened a new office at Lyndon
Corners in Fayetteville, NY, just east of the City of Syracuse. While we have been serving
Onondaga County for many years —and already had many customer relationships in
this region —the opening of this office cemented our presence in the Syracuse area.
In a very short time, the Lyndon Corners office exceeded our
goals and expectations. This can largely be at~ribu~ed to the
great team we assembled to run it, including key personnel
who are well known in the area. The Syracuse region has
experienced an economic resurgence in recent years, giving
us a strong market to serve.
Overall, 2016 was another outstanding year for central
New York. Tompkins Trust Company broke records for
loan originations and loan growth. Deposits outpaced our
projections and we continued to see very solid demand in
residential mortgages.
Agricultural business, in particular, had a very good year. Our
region is bursting with large farms, smaller organic farms, micro
farms, wineries, craft breweries, cideries, cheese producers and
other ag-related businesses. Off=ering financial support for
them is not only a huge opportunity for our Company, it is
the right thing to do. This past year, we saw solid growth in all
of our agricultural business initiatives, including commercial
lending, insurance and cash management. It is incredibly
gratifying ~o watch these businesses grow, succeed and make
central New York a thriving place to live and work.
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Their high-tech equipment helped build the spire on the new World Trade
Center in NYC. But when Blair Construction opened its doors back in 1985, Blair
and Leah Longo never suspected their business would one day be one of the
area's most advanced metal welding and fabrication facilities. As they grew —
thecompany now employs over 20 people, including sons Blair Jr. and Courtland
— they realized they needed a better financial partner. "One of the Tompkin
Insurance people visited us quite a few times," says Leah. "So we called them back.
Their quotes were great, and the transition was fantastic!" After moving their
workers' comp and liability insurance to Tompkins, Blair and Leah began shifting
their bank accounts and 401 (k) services, too. "If they say they'll do something,
they do it," says Leah. "I just can't imagine working with anyone else"
2016 Corporate Repor~ ~ Central New York
4
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2016 Corporate Report Central New York
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On a summer night in 2014, a truck that had lost its brakes came careening
down Route 79 into the city of Ithaca. It crashed into the building that
housed Simeon's, killing a young bartender and causing the front of the
building to collapse. "It was traumatic," says Dean Zervos. "Amanda was
part of our family." The day of the accident, representatives from Tompkins
Insurance Agencies were on hand to help. "They helped make the whole
process easy," says Dean. Interruption insurance from Tompkins also
provided income to the employees of Simeon's. While the leased building
was being rebuilt, Dean and partner, Rich Avery, worked with Tompkins
Trust Company on a commercial loan to help expand their restaurant
with an upstairs dining room. And on August 23 of last year, Simeon's
reopened—with many of the employees who had been with them at the
time of the crash. "Tompkins has been absolutely fantastic," says Dean. "I
would recommend them 100%"
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Simeon's American Bistro
Dean Zervos and Richard Avery, Owners
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For Tompkins Insurance Agencies and Tompkins Financial
Advisors, we focus on qualified referrals. Our efforts do
not revolve around selling, but rather on introducing our
customers to other professionals from the Company they
already know and trust.
focus on professionals under the age of 40. The program was
a tremendous success. We are proud to help support and
encourage young professionals who are giving their all to
make great change happen in our communities.
For quite some time, we have been looking for a way to
celebrate the achievements of young professionals in central
New York. We have now found it. In 2016, Tompkins Trust
Company partnered with Tompkins Connect, she Uni~ed
Way and the Tompkins County Chamber of Commerce,
to produce the Fab S Young Professionals Awards. This is
the first awards program of its kind in Tompkins County to
As always, we remain steadfastly committed to she
communities we serve. We continue to ofFer support to more
than 200 local non-profits through gifts of time and donations.
Our employees spend countless hours volunteering in
our communities and serving on boards and committees
throughout our footprint. We are proud of our employees,
we are proud of our communi~ies, and we are proud to have
this opportunity to serve.
7
2016 Corporate Report I Central New York
Western New York
2016 was a year of exceptional growth in our
core markets. We brought this about by sticking to
our fundamentals. Our 364 employees in western
New York consistently demonstrated the personal
service, local decision-making and community
service for which we are known.
Tompkins Bank of Castile once again achieved record net income lass
year, up 11% from 2015. We now have over 51.0 billion in loans — a
major milesCone —and total assets of nearly $1.4 billion. And, in the
midst of this continued growth, our already outstanding credit quali~y
con~inued to improve.
Disruption is still prevalent in the markets we serve. While some of
our competitors are busy with branch closures and other cutbacks,
we continue to invest — in technology, in people and in our branches
Themselves.
One way our bank succeeds is by persistently pursuing customers we
would like to work with —sometimes for years. In 2016, we began a
new banking rela~ionship with a sixth-generation dairy farm, one of the
strongest and largest operators in the region. We had stayed in touch
with this customer for decades. When the competition faltered, the
farm reached out co us, forging an important new banking relationship.
Our investment in a branch in Pittsford in 2014 was pivotal to our
ongoing success in Monroe County. Last year, the office again grew
its deposi~ base significantly, exceeding its goals. Among many other
successes in the region, we closed on a very large commercial banking
relationship chat was several years in the making.
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Our commi~menC Co western New York was once again demonstrated
through our involvement in the communities we serve. In aggregate, our
employees con~ributed over 13,000 hours of their own time, providing
support to more than 300 worthy organizations. We cannot overstaCe
how proud we are of all our employees for the way they selflessly give of
themselves to support the communities where we live and work.
2016 Corpora~e Report ', Western New York
8
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Jeff Bartkoski, President and CEO
When asked how Tompkins Bank of Castile has impacted his organization,
Jeff Bartkoski's response is simple: "They've helped us save lives" Mercy Flight's
helicopters take patients from the scene of accidents to trauma centers like
Strong Memorial Hospital. They also provide rapid transfer of patients between
hospitals. "When we needed to purchase a fourth helicopter, Tompkins financed
it," says JefF "That helped us expand our reach to the Adirondacks and beyond"
Tompkins also financed the purchase of assets that Mercy Flight had formerly
leased, helping to put the organization on a stronger financial footing. "They
don't put on a flight suit," Je~says of Tompkins. "But they are an integral part of
helping us save lives on a daily basis"
~~
2016 Corpora~e Report Western New York
2016 also brought noteworthy changes for both our insurance
and wealth management groups in western New York. We
purchased Shepard, Maxwell &Hale, an insurance agency with
offices in Batavia and Hamlin, and subsequently moved the
Hamlin office to Brockport.
The customer care centers for insurance and banking were
consolidated in newly-renovated space in Batavia, helping us co
deliver an even better customer experience.
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2016 Corpora~e Report I Western New York
10
Genesee Country Village &Museum
Tompkins Financial Advisors named )im Sperry its new
managing director in western New York. Jim has been
with our Company since 2010 and is excited to take on this
opportunity. With many important pieces now in place, we
are focused on the future for wealth management in this area.
Despiceoursuccessin2016,weseeevengreateropportunities
for the future. Many of our commercial relationships extend
and have naturally led to us doing business in the Buffalo
area. As These relationships continue to expand, we will
actively look for ways co better serve and grow our presence
in that region.
The credit for our success, once again, goes to our people.
They care deeply about the people and organizations in
the communities they serve, and that is wha~ community
banking is all about.
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2016 Corporate Report I Western New York
Hudson Valley
In 2016, Tompkins Mahopac Bank
continued to thrive by giving customers
what they need most: consistent,
high-touch personal service.
There were few new mergers last year, buy there was still a high
level of dissatisfaction with mergers from she past few years. By
doing the right thing for our customers and the community,
and by working hard at our business development initiatives,
we continue to attract customers who are yearning for
something beater.
As a result, Tompkins Mahopac Bank once again had one of she
strongest years in our history, achieving record net income. In
commercial lending, we set a record for new loan originations.
We also supported a substantial number of new construction
projects, helping to ensure continued economic growth in the
geographies we serve.
It was a particularly strong year for residential lending. With rates
still near historic lows, we provided financing through several
affordable housing programs. By ofFering people better ways to
finance their first homes —and by giving them grew personal
service Throughout the process — we are often able to win
customers for life.
Our Power of Partnership internal referral program was a big part
of our success in 2016. Our bank works closely with Tompkins
Financial Advisors to help customers get the maximum value
from their relationship with us. Unlike some larger compe~itor
banks, though, our program is not mo~iva~ed by sales pressure,
but by doing the right thing for our customers. This region holds
great potential for wealth management, and we're pleased to
see our team in the Hudson Valley recognized with she Five Star
Award from Westchester Magazine for the second year in a row.
2016 Corporate Report ! Hudson Valley
1?
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With more than 50 commercial properties
~ and 7 million square feet under management,
Diamond Property Management has dozens
d
Hof banking relationships. But when the
company wante to comp ete y renova e an
aging bowling center and turn it into Spins
Bowl — an entertainment center offering
~ bowling, laser tag, arcades and great food
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they make quick decisions, and they keep ~. ~ ~; ~ `~
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the process simple," says Bill Diamond, the ~~
company's president. Tompkins' financing ~ , w ''~
enabled Bill's company to create a highly
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successful entertainment venue that appeals
to millennials as well as families. "It's nice
when youcan makeacall orsendan email to
your bank and they get back to you quickly,"
says Bill. "That lets us focus on continually
improving our business"
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Diamond Aroperty Management
Bill Diamond, President
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We were proud to continue our support of more than 175 Nothing matters more than what our customers think of us. Even
charitable organizations throughout the Hudson Valley. We also so, it is highly gratifying when other organizations recognize our
supported a brand new efFort this year, called the Community efForts and achievements. In 2016, this happened in two diA"erent
Minute Challenge. Six charities were selected to vie fora gift of ways. Bauer Financial, a top independent financial ratings firm,
$2,000 in three separate rounds. Each charity told its story on once again gave Tompkins Mahopac Bank a five star rating — its
social media, and people were invi~ed to voce for their favorite. highest rating. We were also named one of the Top Workplaces
This effort created a tremendous amount of exposure for all of the in the Hudson Valley by the Journal News. It is hard to imagine a
charities, while also sharing the word on how Tompkins supports better combination of awards: one saying that we are strong and
the community. We look forward to continuing this effort in 2017. stable for our customers, the other saying that we are a great place
to work for our employees. Thank you to all of our people for
making this a truly exceptional year.
2016 Corporare Report Hudson Valley
14
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Peter Ferraro Sr. started YB Storage over 25 years ago. But
as Peter —now semi-retired and CEO of the New York
Self Storage Association —passes the reins to his sons,
the family sees even greater opportunities for the future.
"Self storage is the hottest real estate sector in the country,"
says Peter Ferraro )r. So he and his brother Paul talked to
~ Tompkins Mahopac Bank about financing a new project
in Tarrytown. "It's state of the art" says Peter Jr. "It's a three-
story, fully climate-controlled facility with 500 rooms"
The new building will dramatically expand their ability to
~`-
serve the Westchester area. "Tompkins Mahopac works
~ fast, they're very accommodating, they don't play games,"
he says. "My father always had a great relationship with
them. And now, they've given our second generation the
opportunity to grow at a very rapid pace:'
YB Storage Properties
Peter Ferraro Sr., Paul Ferraro and Peter Ferraro Jr.
~~
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2016 Corpora~e Report Hudson Valley
s
~
Mar-Anne Farms
David and Cindy Wolfskill
"It's not a job, it's a way of life," says David Wolfskill. His farm
has been in the family since 1948. But as their business made
a major transition —expanding through the purchase of two
farms —David and his wife Cindy wondered whether they were
with the right bank. So when their favorite loan officer took a job
with Tompkins VIST Bank, David and Cindy followed him. "We
could have gotten a loan from any bank;' says David. "But when
you need something, Tompkins VIST is there immediately." The
couple has been surprised at the highly personal service they
have received. "They treat you like a family member, not like a
number," says Cindy.And when their health insurance premiums
leapt by nearly $1,000 per month, Tompkins Insurance showed
them how they could save money by switching. Says David:
"They really go above and beyond"
2016 Corporate Repor~ Sou(heastern Pennsylvania
76
We opened two new branches co take advantage of marker
disruption — in Pottstown and Boyertown. These cwo openings
bridge the gap in our geography, connecting our original base in
Berks County with our offices in the Philadelphia area.
The Pottstown office is already a huge success. Opened in June of
2016, the branch achieved 90°/o of its 12-month goal in just seven
months. The oppor~uni~y co acquire the location in Boyertown
was presented co us in July, and by December, the new branch
was already open. This was an extraordinarily quick turnaround.
We look forward to providing this community with the
locally-focused banking they were lacking due to acquisitions
by larger banks.
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~ ~ When David Gray describes the
~~~~~~-.. ballet, he likes to say, We are in
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" ' ~i~~ the dream business" But when
David arrived at the Pennsylvania
Ballet 2%z years ago, he saw an
organization that was under-
capitalized and experiencing
cash flow problems. On the
recommendationofaconsultant,
David switched to Tom kins
VIST Bank. "Our previous bank
had to get the okay from a home
o~Fice thousands of miles away,"
he says. "But Tompkins VIST was
ready to help us with decisions
made locally." By rolling their debt
into along-term mortgage and
providing a new line of credit,
Tompkins VIST helped solve the
ballet's cash flow concerns. "Our
old bank made us jump through
endless hoops," he says. "It's
refreshing to work with a bank
. _
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Pennsylvania Ballet
David Gray
Executive Director
2016 Corporate Report Southeasteri~i Penns
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We had an excellent year in lending while
maintaining strong credit quality. We exceeded our
lending goals in almost every area and had total loan
growth of 11.4%. Agricultural lending continued
to perform extremely well. We have lending
relationships with a diverse group of agricultural
businesses, including dairy, poultry, crop and
commercial ag businesses. This is an important part
of our local economy, and we foresee a significant
upside for many years to come.
Our employees have completely embraced
community involvement. In 2016, our people gave
over 7,700 hours of their time to help make our
communities kinder, better places to live. This is a
stunning achievement. Whether our employees are
helping children, supporting the elderly or providing
food ~o the hungry, they are making adifference —
anddoing itfor the right reasons.
Partnership with insurance and wealth management
is ingrained in everything we do. Tompkins Insurance
Agencies implemented a very focused program to
introduce more bank customers to our insurance
offerings. In addition, a new approach to claims was
instituted last year, providing 24/7 call service to our
customers. This resulted in a 99% claims satisfaction
rating.* Tompkins Financial Advisors expanded our
trust services into Pennsylvania. We now provide a
very similar client experience in wealth management
Throughout all four of our regions.
For the third year, Tompkins VIST Bank was
recognized as Best in Berks. This is a great honor,
especially considering than Berks County is where
we originated. It is a testament to our people, their
commitment, their energy level, their willingness
to share our message and their investment in the
communities we serve. In this environment of
dissatisfaction with larger banks, we are incredibly
well positioned for further growth.
'" Customer claims satisfaction rate based on survey responses
received from personal insurance customers who had a
homeowners or auto claim in 2016.
2016 Corpora~e Report Southeastern Pennsylvania
~.
'"
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 $1,442,724 at December 31,
2016 and 51,390,255 at December 31, 2015)
Held-to-maturity securities, at amortized cost (fair value of 5142,832 at December 31, 2016
and 5146,686 at December 31, 2015)
Originated loans and leases, net of unearned income and deferred costs and fees
Acquired loans
Less: Allowance for loan and lease losses
Net Loans and Leases
Federal Home Loan Bank and other 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
Federal funds purchased and securities sold under agreements to repurchase
Other borrowings
Trust preferred debentures
Other liabilities
Total Liabilities
Equity
Tompkins Financial Corporation Shareholders' Equity:
Common Stock -par value 5.10 per share: Authorized 25,000,000 shares; Issued:
15,171,816 at December 31, 2016; and 15,015,594 at December 31, 2015
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, ac cost - 117,997 shares at December 31, 2016, and 116,126 shares
at December 31, 2015
Total Tompkins Financial Corporation Shareholders' Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
AS OF DECEMBER 31.
2016
2015
$62,074
1,880
63,954
$56,261
1,996
58,257
0
7,368
1,429,538
1,385,684
142,119
3,863,922
394,111
35,755
146,071
3310,768
461,274
32,004
4,222,278
3,740,038
43,133
70,016
77,905
92,623
11,349
83,841
29,969
60,331
75,792
91,792
12,448
82,245
$6,236,756
$5,659,995
2,518,318
870,788
1,236,033
2,401,519
855,133
1,138,654
4,625,139
4,395,306
69,062
884,875
37,681
70,654
136,513
536,285
37,509
67,916
$ 5,687,351
55,173,529
1,517
357,414
230,182
1,502
350,823
197,445
(37,109)
(31,007)
(4,051)
547,953
1,452
(3,755)
515,074
1,452
$ 549,405
5576,466
56,236,756
55,689,995
2016 Corpora~e Repor~ ~ Consolidated Statements of Condition
20
W THOUSANDS, t ~~r l'i !tik ~.~i,;n! ;~-~~~~
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 5250,000 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 Aker Provision for Loan and Lease Losses
Noninterest Income
Insurance commissions and fees
Inves[ment services income
Service charges on deposit accounts
Card services income
Mark-to-marke[ontrading securities
Mark-to-market gain on liabilities held at fair value
Other income
Net gain on securities transactions
Total Noninterest Income 68,808
926
Noninterest Expenses
Salaries and wages
Pension and other employee benefits
Net occupancy expense of premises
Furniture and fixture expense
FDIC insurance
Amortization of in[angible assets
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 attribu[able to noncontrolling interests
Net Income Attributable to Tompkins Financial Corporation
Basic Earnings Per Share
Diluted Earnings Per Share
76,950
20,496
72,521
6,450
3,024
2,090
37,076
158,607
86,516
27,045
59,471
131
5 59,340
53.94
53.91
YEAR ENDED DECEMBER 31,
2016
2015
2014
5169,630
$154,636
5150,966
6
220
27,846
3,603
1,434
4
352
29,525
3,100
1,129
2
418
31,298
999
810
202,739
188,746
184,493
1,654
9,059
2,228
2,390
6,772
22,103
780,636
4,321
776,315
29,492
15,203
8,793
8.058
(182)
227
6,291
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
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
71,940
70,765
72,707
16,025
12,312
6,146
2,992
2,013
37,667
149,862
87,514
28,962
58,552
131
S 58,421
53.91
53.87
69,558
21,102
12,203
5,708
2,906
2,095
41,121
154,693
77,576
25,404
52,172
131
$ 52,041
53.51
53.48
21
2016 Corporate Repor[ Consolidated Statements of Income
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The Company's common stock is graded under she
symbol "TMP" on the NYSE MKT LLC. The high
and low closing sale prices, which represen[ ac[ual
transactions as quoted on the Exchange, of the
Company's common sock for each quarterly period
in 2015 and 2016 are presented to the right. The
per share dividends paid by she Company in each
quarterly period in 2015 and 2016 and the payment
dates of these dividends are also presented.
2015 1st Quarter
2nd Quarter
Low
Market Price
High
554.57
55.48
550.91
50.65
3rd Quarter
55.45
50.81
4th Quarter
62.78
52.70
Cash Dividends
Amount Date Paid
$0.42
z/~7/~5
0.42
S/15/15
0.42
0.44
8/17/15
11/16/15
2016 1st Quarter
564.41
551.47
50.44
znd Quarter
3rd Quarter
69.10
61.99
76.41
63.68
0.44
0.44
2/16/16
5/16/16
8/15/16
4th Quarter
95.84
73.17
0.45
11/15/16
$3.87
$3.91
$1.77
0.00
12
13
14
15
16
12
13
14
15
16
Diluted Earnings'
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 2012, 2013 and 2015 are non-GAAP measures which
reflect [he after-tax impact ofinerger-related expenses as well as other nonrecurring items. Refer to the footnotes to the table on page 1 of this report for a
reconciliation of these non-GAAP measures.
Report of Independent Registered Public Accounting Firm
The Board of Direc~ors and Shareholders
Tompkins Financial Corporation
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), she
consolidated statements of condition of Tompkins Financial Corporation and subsidiaries as of December 31.2016 and 2015,
and she related consolidated sta~emencs of income, comprehensive income, cash Aows, and changes in shareholders' equity for
each of the years in the three year period ended December 31, 2016 (not presented herein); and in our report dared February
28, 2017 we expressed an unqualified opinion on those consolidated financial sta~emen~s.
In our opinion, the information set forth in the accompanying consolidated condensed financial statements is fairly stated, in all
material respec~s, in relation to the consolida~ed financial statements from which it has been derived.
~PN~(G LL'P
Rochester, NY
February 28, 2017
2016 Corporate Report ~ Financial Highlights
22
Thomas R. Rochon
Chairman
Presiden~, I~haca College
James W. Fulmer
Vice Chairman
Stephen 5. Romaine
President &CEO
John E. Alexander
Founder, The CBORD Group, Inc.
Paul J. Battaglia, CPA
Managing Director
Freed Maxick CPAs, f?C.
Daniel J. Fessenden
Execu~ive Director
Fred L. Emerson Foundation, Inc.
Patricia A. Johnson
VP of Finance &Administration
Lehigh Universi~y
Frank C. Milewski
Re~ired VP Regional Opera ions
Pa~hways Health
Sandra A. Parker
Retired Presiden~ &CEO
Rochester Business Alliance
Michael H. Spain
Executive Vice President
Brown &Brown
Alfred J. Weber
Presiden~, Tweed-Weber, Inc.
Craig Yunker
Managing Partner, CY Farms
TOMPKINS TRUST COMPANY TOMPKINS BANK OF CASTLE
TOMPKINS MAHOPAC BANK
TOMPKINS VIST BANK
Stephen S. Romaine
Chairman
Presiden~ &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 Censer
Daniel J. Fessenden
Execu~ive Director
Fred L. Emerson
Founda~ion, Inc.
Carl E. Haynes'
Presiden~
Tompkins Cortland
Communi~y College
Susan A. Henry, Ph.D.
Professor,
Depar~men~ of Molecular
Biology and Generics
Cornell University
Thomas R. Rochon
Presiden[
Ithaca College
Jennifer Tegan
Par~ner and VP Finance/
Administration
Cayuga Venture Fund
" Re~iring May 2017
Paul J. Battaglia, CPA
Managing Director
Freed Maxick, CPAs, P.C.
Joseph G. Bucci Jr.
Environmental Manager
American Rock Salt
Company, LLC
Phillip J. Clark, RE.
Chairman
Clark Paterson Lee
David N. DeLaVergne
Re~ired Senior Vice Presiden~
Tompkins Bank of Castile
John D. McClurg
President
McClurg Chrysler
Dodge Jeep, Inc.
&McClurg Chevrolet Buick. Inc.
Sandra A. Parker
Re~ired Presiden[ &CEO
Rochester Business Alliance
Stephen S. Romaine
Presiden~ &CEO
Tompkins Financial Corporation
Stephen R. Stoddard, DVM
ParCner
Perry Veterinary Clinic
Craig Yunker
Managing Par[ner, 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
EVf? COO, CFO &Treasurer
Tompkins Financial Corpora ion
Edward C. Barrett, CPA
Retired EVP &CFO
Tompkins VIST Bank
James W. Fulmer
Vice Chairman
Tompkins Financial Corpora ion
James W. Fulmer
Vice Chairman
Tompkins Financial Corporation
Stephen S. Romaine
Presiden~ &CEO
Tompkins Financial Corporation
Philip E. Hughes, Esq., CPA
Vice Chairman
Keys~one Industries
C. Compton Spain
Attorney, Spain &Spain, PC
Michael H. Spain
Execu~ive Vice President
Brown &Brown
Patricia A. Johnson
VP of Finance &Administration
Lehigh University
Frank C. Milewski
Retired VP Regional Operations
Pathways Health
Harry J. O'Neill, III
President
Empire Group
Karen A. Rightmire
Executive Director
The Wyomissing Founda~ion
Stephen S. Romaine
Presiden~ &CEO
Tompkins Financial Corpora ion
TOMPKINS INSURANCE
AGENCIES, INC.
James W. Fulmer
Chairman
Vice Chairman
Tompkins Financial Corpora ion
David S. Boyce
President &CEO
Stephen S. Romaine
President &CEO
Tompkins Financial Corporation
Frank Vitagliano, Jr.
Senior Vice President
Tompkins Insurance Agencies
2016 Corporate Report j Boards of Directors
24
TOMPKINS FINANCIAL
CORPORATION
CORPORATE OFFICERS
Stephen S. Romaine
Presiden~ &CEO
David S. Boyce
Executive Vice President
Francis M. fetsko
Executive Vice President,
COO, CFO &Treasurer
Alyssa H. Fontaine
Execu~ive Vice President &
General Counsel
Scott L. Gruber
Executive Vice Presiden~
Gregory J. Hartz
Executive Vice Presiden~
Brian A. Howard
Executive Vice President
Gerald J. Klein, Jr.
Execu~ive Vice President
John M. McKenna
Executive Vice Presiden~
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
CORPORATION OFFICE
Tompkins Financial Corpora ion
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.~ompki nstrust.com
Tompkins Bank of Castile
90 Main St.
Batavia, NY 14020
(585)345-0122
www. ban kofcasci le.com
Tompkins Mahopac Bank
1441 Roue 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'
PO. Box 6437
Ithaca, NY 14851
(607)273-0037
www.tompkinsfinancialadvisors.com
STOCK LISTING
Tompkins Financial Corpora ion
common stock is traded on she
NYSE MKT LLC under she symbol
TMP.
The Tompkins Financial Stock
Purchase Plan is administered by
the American Sock Transfer &
Truss Company, LLC as transfer
agen~ for Tompkins Financial
Corporation. It ofFers a convenient
way for shareholders co increase
their investment in the Company.
The plan enables shareholders to
reinves~ all or part of their cash
dividends or to make optional cash
payments, with some restrictions,
in order co purchase shares of
Tompkins Financial Corporation
common sock wi~hout 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
con acting:
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 websi~e
www.amstock.com orcontact:
American Stock Transfer &Trust
Company, LLC
Shareholder Relayions
6201 15th Avenue
Brooklyn, NY 11219
Overnigh~ address:
6201 15th Avenue
Brooklyn, NY 11219
1-800-937-5449 or1-718-921-8200
E-mail address: info@amstock.com
Also, Tompkins Financial Stock
Purchase Plan enrollmen~
information can be requested and
shareholder questions answered by
contac~ing she 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 Repor[) for 2016, filed
with the Securi~ies 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 interne
and select she op~ion 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 Ibs of paper which has a
postconsumer recycled percentage
of 10%.
75 trees preserved for the future
625 Ibs wa~erborne waste not created
3,229 gallons wastewater Aow saved
205 Ibs solid waste not generated
2,278 Ibs net greenhouse gases prevented
2,237,127 BTUs energy not consumed
t Investment Services provided through Tompkins Wealth Advisors. Trust and Estate Services provided through Tompkins Trust Company.
Securi~ies and advisory services offered through LPL Financial, a Regis~ered Inves~men~ Advisor, Member FINRA/SIPC. Insurance products offered [hrough LPL Financial or its licensed affilia~es. The
investmen~ products sold through LPL Financial are nog insured Tompkins Truss Company deposi~s and are nog FDIC insured. These products are nog obligations of Tompkins Trust Company and are
nor endorsed, recommended or guaranteed by Tompkins Trust Company or any government agency. The value of she inves~men[ may fluc~ua~e, [he reeurn on the investment is not guaranteed and
loss of principal is possible. Tompkins Trust Company, Tompkins Financial Advisors and Tompkins Wealth Advisors are nog registered broker/dealers and are nor affiliated wi[h LPL Financial.
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