TURNING POSSIBILITIES into REALITIES.
Tompkins Financial 2018 Corporate Report
2018 CORPOR ATE REPORT | CORPOR ATE INFORM ATION — 25
TURNING POSSIBILITIES into REALITIES.together.Bold ideas burned brighter throughout New York State and Pennsylvania last year. People in need found affordable food for their families. Business leaders financed a successful future for themselves and their employees. Patients received confidential, quality care in their own neighborhoods.In 2018, all of this happened. And it took all of us to do it.At Tompkins Financial Corporation, customers come to us with a vision of how things could be. Then we combine the insights of banking, insurance and investment professionals to design solutions just as creative. IMAGINE HOW MUCH MORE we can ACHIEVE. together. Financial | HIGHLIGHTS
IN THOUSANDS, EXCEPT PER SHARE DATA
2018
2017
% CHANGE
Total assets
Net income attributable to Tompkins Financial Corporation
Diluted earnings per share
Adjusted diluted earnings per share1
Cash dividends per share
$6,758,436
82,308
5.35
5.33
1.94
$6,648,290
52,494
3.43
4.42
1.82
1.66%
56.80%
55.98%
20.59%
6.59%
\
Selected | FINANCIAL DATA
IN THOUSANDS, EXCEPT PER SHARE DATA
2018
2017
2016
2015
2014
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 (losses) 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 share1
Cash dividends per share
Common equity per share
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)
$6,758,436
4,833,939
4,888,959
1,076,075
620,871
251,592
39,792
211,800
3,942
(466)
$6,648,290
4,669,120
4,837,807
1,071,742
576,202
226,764
25,460
201,304
4,161
(407)
$6,236,756
4,258,033
4,625,139
884,815
549,405
202,739
22,103
180,636
4,321
926
$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
82,308
52,494
59,340
58,421
52,041
5.39
5.35
5.33
1.94
40.45
1.23 %
13.93 %
8.83 %
35.99 %
3.46
3.43
4.42
1.82
37.65
0.82 %
9.09 %
9.04 %
52.60 %
3.94
3.91
3.91
1.77
36.20
1.01 %
10.85 %
9.28 %
44.92 %
3.91
3.87
3.63
1.70
34.38
1.07 %
11.51 %
9.31 %
43.48 %
3.51
3.48
3.48
1.62
32.77
1.03 %
10.76 %
9.54 %
46.15 %
1,035
66
83
1,041
65
84
1,019
66
85
998
63
85
1,000
65
85
$3,806,274
$4,017,363
$3,941,484
$3,852,972
$3,761,972
1Adjusted diluted earnings per share reflects adjustments made for certain nonrecurring items. Adjustments for nonrecurring items in 2018 included a $2.2 million gain on sale of real
estate and a $1.9 million write-down of impaired leases ($0.02 per share). Adjustments in 2017 included a $14.9 million ($0.99 per share) one-time non-cash write-down of net deferred
tax assets related to the Tax Cuts and Jobs Act of 2017. Adjustments in 2015 included a $3.6 million ($0.24 per share) after-tax gain on a pension plan curtailment. There were no
adjustments in 2016 and 2014. Adjusted diluted earnings per share is a non-GAAP measure. This adjusted measure is defined in the Company’s Form 10-K.
2018 CORPOR ATE REPORT | FI NAN CI AL H I G H LI G HTS — 1
Message from | TOM ROCHON & STEVE ROMAINE
2018 was a great year for Tompkins Financial in terms of building a strong foundation for
our future—fguratively and literally. We not only achieved another year of strong fnancial
performance, we also completed and moved into a new headquarters building that will
serve our Company for decades to come.
While year-over-year comparisons are challenging
due to the impact of the Tax Cuts and Jobs Act of
2017, overall, we had another year of record earnings
in 2018, with full-year diluted earnings per share of
$5.35, an increase of 56% over last year. Our deposit
gathering continued to be a key area of focus in 2018.
Tanks to the success of some of our key strategic
initiatives in this area, we were able to grow total
deposits in a challenging rate environment. We also
saw growth in loans, which ended the year up 3.5%
over the prior year. At the same time, our credit
quality remained strong with nonperforming assets
remaining near historically low levels.
Tere is little doubt the banking industry as a whole
faced numerous challenges in 2018. Tere was
pressure on our net interest margin due to rising
rates and uncertainty in the political and economic
environments that slowed the pace of business
investment. As these trends are expected to continue
into 2019, they highlight the importance of our
business model, including the value of our fee-based
businesses—Tompkins Insurance Agencies and
Stephen S. Romaine
P R E S I D E N T & C E O
Dr. Tomas R. Rochon
C H A I R M A N
2 — 2018 CORPOR ATE REPORT | ME SSAGE TO SHAREHOLDER S
Tompkins Financial Advisors†. Both afliates grew
over the past year, adding new talent with a wealth of
experience. Noninterest income now represents nearly
27% of total revenues.
Team in April 2018. Te team of employees, representing
every area of the Company, is tasked with identifying the
next generation of products and processes we should
pursue as we build the customer experience of the future.
Managing risk and cybersecurity remains critically
important to our Company. In 2018, we made signifcant
investments in both people and technology to remain
current and vigilant in protecting our information security.
In June, we welcomed Steve Cribbs as our new Chief
Risk Ofcer, a professional with 20 years of experience in
fnance and risk management, including eight years with
the Federal Reserve and 12 years with various fnancial
institutions. Steve is now responsible for overseeing
compliance, audit, information security and enterprise risk
management functions. In recognition of Steve’s ability
to contribute more broadly to our Company and the
importance of his area of expertise, he was appointed to
our Senior Leadership Team.
Last year, the team at Tompkins Financial grew closer
together, literally. In June, we celebrated the grand
opening of our new building in downtown Ithaca
that is now home to many of our Central New York-
based employees. We are proud to attract more
business to Ithaca’s core, including 305 employees
brought together from seven previous sites. Te new
building is environmentally friendly, consistent with our
commitment to sustainability and ofers more modern,
private and comfortable space, advanced technology
and convenient parking for customers and staf.
Few things are as important to us as our customers. We
implemented a customer survey platform last year to get
to know our customers better and discover new ways to
serve them. We are integrating all feedback into our work
to continuously improve the customer experience. We
are committed to ofering state-of-the-art technology
solutions that will enhance our online banking, mobile
and cash management platforms in 2019, empowering
customers to do more online. With this commitment in
mind, we launched Tompkins Financial’s frst Innovation
It’s important we stay on top of changes in our
industry and ofer our voice where it is needed.
We remain dedicated to being a strong and stable
presence in the banking industry. In 2018, Steve
Romaine was appointed to the board of the Federal
Home Loan Bank of New York.
Susan Henry is retiring from the Board of Directors in May
of 2019, having reached retirement age. She joined both
the Trust Company Board and the holding company
Board in May of 2010. We appreciate her nine years of
service and wish her well in retirement.
We invite all our shareholders to join us for our Annual
Meeting. We will hold the Annual Meeting of
Shareholders on Tuesday, May 7 at 5:30 p.m. at the
Country Club of Ithaca. Te Shareholder Information
Meeting for Pennsylvania will be held Wednesday, May
8 at 4:30 p.m. at the Berkshire Country Club in Reading.
Te Shareholder Information Meeting for the Hudson
Valley will be held Tursday, May 9 at 6:00 p.m. at the
Mt. Kisco Country Club. Te Shareholder Information
Meeting for Western New York will be held Tuesday,
May 14 at 5:30 p.m. at the Genesee Country Village &
Museum in Mumford.
Tis is always a special time for us—when we get
to look back on a successful year, recognize our
achievements as a Company and thank the people
who made them possible. We could not be more
proud of the work our employees accomplished
in 2018, and we are grateful to our customers and
shareholders for your continued support.
2018 CORPOR ATE REPORT | ME SSAGE TO SHAREHOLDER S — 3
Central | N E W YO R K
Tompkins Trust Company is now housed in our new headquarters building in downtown
Ithaca. Te new Main Ofce features state-of-the art technology and a spacious, welcoming
layout, but of course our caring customer service hasn’t changed. We’ve also preserved the
original vault door and moved it over to the new lobby.
Reafrming our commitment to our customers,
Ithaca’s downtown and the Ithaca Commons, we
sold the building that had housed Tompkins Trust
Company since 1935 to Tompkins County. Te
building is now home to the Tompkins Center for
History and Culture, featuring multimedia exhibits and
presentations about local and regional history. It is also
the new home to many local nonprofts including
Visit Ithaca, Te Dorothy Cotton Institute and
Community Arts Partnership. We’re excited to help
bring more people to our city’s center.
2018 saw another record year of earnings, with growth
in loans and deposits for our region. New business was
strong and there was a noticeable shift in residential
lending from refnancing loans to purchase mortgages.
We reafrmed our commitment to frst-time home
buyer programs. We are a leader in the marketplace
for delivering home mortgages.
Tompkins Trust Company remained committed
to giving back to the communities we serve. We
partnered with United Way of Tompkins County
to host a Community Carnival for a Cause on the
Ithaca Commons that successfully brought our
community together in the downtown area for
a common purpose.
Te event was conceived, planned and executed
by Tompkins employees from all Central New York
afliates and featured local celebrities, politicians,
and personalities.
Our Lyndon Corners ofce in Syracuse had a great
year of continued growth and added new members
to the team. Te commercial team had strong
growth in loans and deposits in response to the
overall positive reception we’ve experienced from the
Syracuse community. Tompkins Insurance Agencies
added both commercial and personal producers to
the team in Syracuse. Tis is in addition to wealth
management, trust services, cash management,
residential mortgage lending, and retail branch services
that previously existed in this ofce. Te Financial
Center now ofers a full complement of banking
services to the Syracuse community.
Central New York was the frst region of Tompkins
Financial Advisors to employ a full team approach.
Ofering clients the combined experience of a
wealth advisor, portfolio manager, trust ofcer and
fnancial planner proved highly efective by further
improving upon the client experience.
4 — 2018 CORPOR ATE REPORT | CENTR AL NEW YORK
4
Cayuga Health System includes Cayuga Medical Center (CMC) in Ithaca and
Schuyler Hospital in Montour Falls, as well as Cayuga Medical Associates, a multi-
disciplinary physician organization. Te Health System has chosen Tompkins Financial
to help them with various fnancing and insurance needs over the years because they
know we understand how important it is to have successful hospitals and physicians
providing care to our communities. Tompkins Financial Advisors is the custodian of
Cayuga Health System’s investment accounts, Tompkins Insurance handles all of
the Medical Center’s and Cayuga Medical Associates’ insurance needs, and Tompkins
Trust Company provided a loan that enabled CMC to purchase two MRIs and renovate
their Lab and Operating Room. “Te missions of both Cayuga Medical Center and
Tompkins Trust Company focus heavily on the communities we serve,” says John Rudd,
President and CEO of Cayuga Health System. “Community has been at the foundation
of both our organizations since we were established in the 1800s.”
CAYUGA HEALTH SYSTEM
John R. Rudd
President & CEO
2018 CORPOR ATE REPORT | CENTR AL NEW YORK — 5
SCHNEIDER PACKAGING
EQUIPMENT CO., INC.
Bob Brotzki
President
6 — 2018 CORPOR ATE REPORT | CENTR AL NEW YORK
With almost half a century of industry problem-solving in end-of-line automation,
Schneider Packaging Equipment Co., Inc., of Brewerton, NY, has become a leading
manufacturer of case packing and robotic palletizing solutions. After 48 years as
a family-owned business, senior management wanted to acquire the company.
“As part of our due diligence we looked at a group of banks, and Tompkins Trust
Company really stood out,” says Bob Brotzki, President. “Instead of just saying ‘this
is what we can do for you,’ Tompkins looked closely at our prospectus, projections
and what we wanted to accomplish and came back with an impressive package. It
was clear they wanted our business. We’re a company that knows about workfow
and adding value to a process without disrupting it,” says Brotzki. “It’s clear
Tompkins is, too. Tey really understand our needs and how we run our business.
Te system and procedures they helped put in place work efortlessly for us.”
2018 CORPOR ATE REPORT | CENTR AL NEW YORK — 7
Western | N E W YO R K
In 2018, we stayed true to our commitment to existing customers and the
communities we serve across Western New York while expanding our oferings and
footprint. Our decades-long, multi-generational relationships are the cornerstone
of our business. 2019 marks the 150th anniversary of Tompkins Bank of Castile.
Consistency is a key strategy for our Company and, we believe, is also the foundation
of our long-term sustainable and proftable growth. You see it in the employment
longevity of our people and their continuous dedication to providing great service to
our customers and our communities.
TRILLIUM HEALTH
Andrea DeMeo
President & CEO
Jason Barnecut-Kearns
Senior Vice President & CFO
8 — 2018 CORPOR ATE REPORT | WE STERN NEW YORK
Tompkins Bank of Castile continued to prove
our fnancial stability with another record year of
earnings. We opened our frst Tompkins Bank of
Castile ofce in the Bufalo market in December
of 2018 after years of serving the market from
other nearby ofces. Bufalo is the largest market
in the Western New York (WNY) region, larger
than Rochester and Genesee, Livingston, Orleans
and Wyoming Counties combined. Now there is a
dedicated team of banking, insurance and wealth
management professionals working side-by-side, full-
time in Amherst.
building a strong team for the new Amherst ofce.
Like the bank, wealth management is putting in place
the leadership, talent and experience to support
continued growth.
Tompkins Insurance Agencies has had an ofce in Erie
County for decades. Tey are now expanding their
presence in the new Amherst ofce to work alongside
bank and wealth management partners. Tere are
now 10 employees in the new ofce with plans to
keep growing to support the Bufalo market presence.
During 2018, Tompkins Financial Advisors also
expanded in both Bufalo and Rochester, including
We continued to ofer all of our customers convenient
ways to bank with us, including mobile apps that
support consumer and commercial deposits. For our
Trillium Health is an innovative, patient-centered health care organization who
wants partners as committed to the community as they are. Tis year, they chose
Tompkins Bank of Castile and Tompkins Financial Advisors for the fnancing and
investment strategies to purchase and renovate a building that will house a new
clinic. Te clinic will be Article 28-compliant and dedicated to women’s health
services and pediatrics for a nine-county service area. “Trillium Health is expanding
to serve the needs of women and children in our community who are vulnerable
and most at risk, and Tompkins Bank of Castile has been by our side with the
sound advice and fnancial backing we need,” said Andrea DeMeo, President and
Chief Executive Ofcer. “Te bank has inspired the trust and confdence of our
team, which supports our strategic growth at a pivotal time in our history,” adds
Jason Barnecut-Kearns, Senior Vice President and Chief Financial Ofcer.
2018 CORPOR ATE REPORT | WE STERN NEW YORK — 9
small business customers, we continued to ofer
Lightning LoansSM. We were the frst community
bank in WNY to partner with a leading industry
platform that enables small businesses to learn
about, apply for and typically get notifed about
approval of loans in under 48 hours.
In a challenging mortgage market, we added to
our product selection. Our Community Heroes
Program ofers teachers, frefghters and emergency
responders low-money-down home loans. We
were the frst in the WNY market to ofer a lending
product specifc to these unique customers.
Our commitment to WNY agriculture customers
remained a strong diferentiator for the bank.
We continued to invest in people who have
an expertise in this area and supported them
with banking and credit policies unique to their
agricultural client base.
We remained deeply involved in the WNY
communities we served. In 2018, our employees
dedicated thousands of hours of their time to
local organizations including creating Tanksgiving
baskets for the Small Business Council of Rochester
and supporting organizations like the United Way
of Wyoming County, Genesee County Business
Education Alliance, Junior Achievement and Focus
on the Children.
We are one of the largest employers in the City
of Batavia once again. We employ 145 people
there, nearly half the total number of our
employees in WNY. Tis location gives us access
to an impressive talent pool and is a convenient
and cost-efective place to operate a facility of
this size. Our Customer Care Center, located
in Batavia, supported insurance and banking
customers in every region of our Company.
Last year, we further enhanced the training and
capabilities of our staf there.
Dr. James Sunser doesn’t take switching banks lightly. “It’s a substantial undertaking,”
says the President of Genesee Community College (GCC). “We only want to make
a move if there will be a substantial beneft.” Te college invited proposals from
several banks, including Tompkins Bank of Castile. “We had worked with Tompkins
Insurance Agencies for our insurance needs for several years,” says Dr. Sunser.
“And we were very happy with that relationship.” What tipped the decision in
Tompkins’ favor was the bank’s stability and local connection. “So many banks have
transitioned from one name to another,” says Dr. Sunser. “With Tompkins, we can
depend on them being the same bank, and having the same people answering the
phone.” GCC’s focus on its students also weighed heavily in the decision. “If more of
our students end up working for Tompkins, that would be a very good thing.”
10 — 2018 CORPOR ATE REPORT | WE STERN NEW YORK
GENESEE COMMUNITY COLLEGE
James M. Sunser, Ed. D.
President
2018 CORPOR ATE REPORT | WE STERN NEW YORK
—
11
Hudson Valley | N E W YO R K
Our commitment to our business and consumer customers remained strong in 2018. Our
newly relocated branches in Pleasantville and Yonkers continue to thrive and attract new
customers with their combination of the latest technology and personal service. In Yonkers,
we recently added two new team members in the roles of branch manager and business
development ofcer. Both are Yonkers natives with deep personal knowledge of their
customers’ needs.
JONNA SPILBOR LAW
Jonna M. Spilbor, Esq.
Attorney/Owner
12 — 2018 CORPOR ATE REPORT | HUDSON VALLEY
Te business community continues to grow in the
Hudson Valley and healthcare is one of the industries
leading the way. It is now the largest industry here
and we have supported its growth by ofering a
unique suite of products that include expedited
credit approval and a customized product and
service approach. Te products, coupled with the
expertise of our lenders, have been well received
by our clients and supported by our partners in
the accounting and legal professions who serve
the health care industry in our region.
We continued our support of the business
community with our involvement on the Council
of Industry, which specializes in the needs of the
growing manufacturing industry in the Hudson
Valley. We have long served the needs of the many
diverse businesses in our region and understanding
their unique needs and designing tailored solutions
has historically been a strength of ours.
Investing in our people is core to our values. Our
newly launched Commercial Lending Development
Ever since she was three years old, Jonna Spilbor wanted to be an actress. “But my dad
said I needed a plan B!” she says. “And plan B was being a lawyer.” She worked for other
law frms for 15 years. Ten, 10 years ago, Jonna started her own frm. “After I paid my
frst month’s rent, I had zero dollars in the bank,” she recalls. Not long after, a friend
told her about Tompkins Mahopac Bank. “Now, I do all of my banking with them,”
says Jonna. “Tey are the best business partner I could have.” Jonna’s frm has grown
exponentially, and she is now a regular guest analyst on CNN, Fox News and Oxygen.
“Te personal relationship Tompkins has with you is essential,” she says. “I couldn’t have
experienced this growth without them.”
2018 CORPOR ATE REPORT | HUDSON VALLEY
—
13
Program is designed as a way for some of our top
talent who are interested in becoming commercial
lenders to learn the business. Commercial lenders
are key advisors to many of our biggest customers
and play a critical role for Tompkins. Our Professional
Development Program is another opportunity for
our people to learn more broadly about banking
and its many facets.
Last year, we gave back to our communities by
hosting Food Truck Fridays at our two Mahopac
branches, providing free lunch to anyone who
stopped in. We served several hundred community
members through the program.
Martabano Real Estate Management Corp. (MRE) is a family owned development
company in Mount Kisco, New York. A personal relationship with a community bank
was always important to them. “My brother John was originally doing our fnancing
through our local bank,” explains Donald Martabano, MRE President. “He actually
served on one of their boards. When they were bought out, we missed that hometown
bank feeling. Fortunately, we soon met Tompkins Mahopac Bank and found what
we needed.” Warmth isn’t the only thing MRE enjoys. “Beyond great service while
managing accounts and providing fnancing, they’re almost like our business advisors,”
says Martabano. “We trust their guidance.” It’s a two-way relationship. When MRE
was looking for their new bank back in 2004, they were working on a new building on
Lexington Avenue in Mount Kisco. Tat building has been the home of a Tompkins
Mahopac Bank branch ever since.
14 — 2018 CORPOR ATE REPORT | HUDSON VALLEY
p. A — 2018 | WESTERN NEW YORK
We also continued to support more than 200
charitable organizations throughout the Hudson
Valley and started the Acorn Alliance program that
allows employees to volunteer for local nonprofts
during business hours as just another way of serving
the community.
Power of Partnership referrals remain a solid
foundation for growth and success in the region.
Bankers and wealth advisors continue to work closely
together to ensure customers are getting full value
from our relationship with them. Tompkins Financial
Advisors grew the size and expertise of our team
signifcantly in 2018, hiring a senior wealth advisor,
portfolio manager, and transitioning a trust ofcer.
MARTABANO REAL ESTATE
MANAGEMENT CORP. (MRE)
Donald Martabano
President
2018 CORPOR ATE REPORT | HUDSON VALLEY
—
15
p. A — 2018 | WESTERN NEW YORK
Southeastern | PENNSYLVANIA
Smart growth while protecting asset quality remained a key strategy in our region in 2018.
With so many mergers and acquisitions in Southeastern Pennsylvania in the past few years,
many personal and commercial banking customers lost the community bank they had
known. We want them to fnd the personal services, convenience and local decision making
they’re looking for at Tompkins VIST Bank, but we need to be vigilant to maintain the asset
quality we’ve achieved. We seek customers of exceptional character who are interested in
forming a relationship with our bank and our people. Tis strategy has been key to growing
sustainably and weathering the ups and downs in the economy.
Another strategy that supported our continued
loan growth last year was diversifcation of our loan
portfolio. Diversifcation into specifc markets such
as agriculture and small business helps mitigate risk
while supporting our communities. In 2018, we
hired a new agricultural loan ofcer to support our
expanding agricultural portfolio.
Tompkins Insurance added four new producers
in Southeastern Pennsylvania in 2018 and had a
strong year of sales growth. Continuing our
Power of Partnership strategy, bank and afliate
representatives shared leads, and 15% of new
insurance relationships came from bank
partner referrals.
One way we continued to support small business
lending in our region last year was through our
Lightning LoansSM program. Lightning LoansSM
lets small businesses go online for a faster and
more efcient application process. In 2018,
90% of Tompkins VIST Bank’s loan applications
went through our Lightning LoansSM platform,
demonstrating that customers like using cutting
edge technology, but enjoy having access to local
decision makers.
Deposits helped support loan growth and
attracting deposits remained an important part
of our strategy, especially in a fercely competitive
marketplace. Our Gold Rush program is an
internal initiative that combines team members
from diferent lines of business and branches
and has led to higher deposits and an increased
collaboration throughout our Tompkins VIST
Bank organization in 2018.
Tompkins Financial Advisors continued to
transition from a broker/dealer to a fduciary
model and is expanding the team of professionals
serving each of our clients to now include a
wealth advisor, portfolio manager, trust ofcer and
fnancial planner.
We don’t just say we’re a community bank, we
live it. Our Tompkins VIST Bank employees
volunteered thousands of hours of community
service in 2018. Tompkins VIST Bank employees
serve on local boards, volunteer services, fundraise
and advocate for local nonproft organizations.
We want to make our communities a better place
to live and work. It’s just the right thing to do.
16 — 2018 CORPOR ATE REPORT | SOUTHE ASTERN PENNSYLVANIA
Humane Pennsylvania is reinventing animal welfare. “We help animals by helping
people,” says President and CEO Karel Minor. “When we provide veterinary services
to people who are in need, we keep more animals safe and sound in their homes.”
Humane PA started as a merger between two of Pennsylvania’s most respected
sheltering organizations. To accommodate the sudden change in their organization,
they needed a new partner. “Tompkins VIST Bank understands nonprofts in a way that
other banks don’t,” says Karel. With Tompkins’ guidance, Humane PA was able to secure
a $3.1 million grant that will help provide even more assistance to pets and their families.
Humane PA now relies on Tompkins for banking, investments and employee health
insurance. Says Karel, “Tey keep fnding new ways to help us grow and succeed.”
HUMANE PENNSYLVANIA
Karel Minor
President and CEO
2018 CORPOR ATE REPORT | SOUTHE ASTERN PENNSYLVANIA
—
17
SHARE FOOD PROGRAM, INC.
Steveanna Wynn
Executive Director, Retired
Eloise McBride, Co-Interim Director
18 — 2018 CORPOR ATE REPORT | SOUTHE ASTERN PENNSYLVANIA
Of course, a community food program knew just what they needed in a community
bank. “We do business based on trust and respect,” says Steveanna Wynn, recently
retired Share Food Program Executive Director. Te program provides food packages
across Pennsylvania, Delaware, Maryland, New Jersey and New York from their facility
in Philadelphia. “We know we can come to Tompkins VIST Bank with our goals,
and they’ll come back with fnancial solutions to make them possible. We trust them
and that’s special.” When the organization needed to bring the electrical service of
their hundred-year-old building into this century, Tompkins VIST Bank put together
the right combination of fnancing and state resources. “We’re committed to treating
people with respect and dignity, and that’s the relationship we have with our bank…
they even come to our anniversary party every year,” says Wynn with a smile.
2018 CORPOR ATE REPORT | SOUTHE ASTERN PENNSYLVANIA — 19
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
Available-for-sale securities, at fair value (amortized cost of $1,363,902 at December 31, 2018
and $1,408,996 at December 31, 2017)
Held-to-maturity securities, at amortized cost (fair value of $139,377 at December 31, 2018
and $140,315 at December 31, 2017)
Equity securities, at fair value (amortized cost $1,000 at December 31, 2018 and $1,000 at
December 31, 2017)
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 $.10 per share: Authorized 25,000,000 shares; Issued: 15,348,287 at
December 31, 2018; and 15,301,524 at December 31, 2017
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, at cost – 122,227 shares at December 31, 2018, and 120,805 shares at
December 31, 2017
Total Tompkins Financial Corporation Shareholders’ Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
20 — 2018 CORPOR ATE REPORT | STATE MENTS OF CONDITION
YEAR ENDED DECEMBER 31,
2018
2017
$78,524
1,865
80,389
$77,688
6,615
84,303
1,332,658
1,391,862
140,579
139,216
887
4,568,741
265,198
43,410
4,790,529
52,262
97,202
81,928
92,283
7,628
82,091
913
4,358,543
310,577
39,771
4,629,349
50,498
86,995
80,106
92,291
9,263
83,494
$6,758,436
$6,648,290
2,853,190
637,295
1,398,474
4,888,959
2,615,632
748,250
1,437,925
4,837,807
81,842
75,177
1,076,075
1,071,742
16,863
73,826
16,691
70,671
$ 6,137,565
$6,072,088
1,535
366,595
319,396
(63,165)
(4,902)
619,459
1,412
$620,871
1,530
364,031
265,007
(51,296)
(4,492)
574,780
1,422
$576,202
$6,758,436
$6,648,290
Consolidated | STATEMENTS OF INCOME
{ CONSOLIDATED STATEMENTS OF INCOME }
YEAR ENDED DECEMBER 31,
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 certifcates 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 (loss) gain on securities transactions
Total Noninterest Income
Noninterest Expenses
Salaries and wages
Pension and other employee benefts
Net occupancy expense of premises
Furniture and fxture expense
FDIC insurance
Amortization of intangible 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 attributable to noncontrolling interests
Net Income Attributable to Tompkins Financial Corporation
Basic Earnings Per Share
Diluted Earnings Per Share
YEAR ENDED DECEMBER 31,
2018
2017
2016
$214,370
$191,410
$169,630
31
0
30,377
3,437
3,377
251,592
1,712
14,883
152
1,227
21,818
39,792
211,800
3,942
207,858
29,369
17,288
8,435
9,693
0
0
13,130
(466)
77,449
85,625
22,090
13,309
7,351
2,618
1,771
48,303
181,067
104,240
21,805
82,435
127
$ 82,308
$5.39
$5.35
37
0
29,721
3,475
2,121
6
220
27,846
3,603
1,434
226,764
202,739
1,880
10,253
235
1,158
11,934
25,460
201,304
4,161
197,143
28,778
15,665
8,437
9,100
0
0
7,631
(407)
69,204
81,948
21,458
13,214
7,028
2,527
1,932
42,998
171,105
95,242
42,620
52,622
128
1,654
9,059
2,228
2,390
6,772
22,103
180,636
4,321
176,315
29,492
15,203
8,793
8,058
(182)
227
6,291
926
68,808
77,379
19,909
12,521
6,450
3,024
2,090
37,234
158,607
86,516
27,045
59,471
131
$ 52,494
$ 59,340
$3.46
$3.43
$3.94
$3.91
2018 CORPOR ATE REPORT | STATE MENTS OF INCOME — 21
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Te Company’s common stock is traded under the
symbol “TMP” on the NYSE American. Te 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 2017 and 2018 are presented to the right. Te
per share dividends paid by the Company in each
quarterly period in 2017 and 2018 and the payment
dates of these dividends are also presented.
$5.35
$5.33
$3.87
$3.63
$3.91
$3.48
$4.42
$3.43
Market Price
Low
High
Cash Dividends
Amount Date Paid
2017 1st Quarter
$96.00
$79.63
$0.45
2/15/17
2nd Quarter
3rd Quarter
87.43
86.14
75.81
72.20
0.45
0.45
5/16/17
8/15/17
4th Quarter
89.99
79.06
0.47
11/15/17
2018 1st Quarter
$85.82
$74.35
2nd Quarter
3rd Quarter
89.15
91.14
4th Quarter
83.00
75.00
80.12
69.67
$0.48
0.48
0.48
0.50
2/15/18
5/15/18
8/15/18
11/15/18
$1.94
$1.77
$1.82
$1.70
$1.62
0.00
0.00
16
17
Diluted Earnings1
PER SHARE IN DOLLARS
18
16
17
Cash Dividends
PER SHARE IN DOLLARS
18
1The darker shaded sections of the bars reflect GAAP earnings per share. The lighter bars reflect adjusted diluted earnings per share. Adjusted diluted earnings per share
reflects adjustments made for certain nonrecurring items. Adjustments for nonrecurring items in 2018 included a $2.2 million gain on sale of real estate and a $1.9 mil-
lion write-down of impaired leases ($0.02 per share). Adjustments in 2017 included a $14.9 million ($0.99 per share) one-time non-cash write-down of net deferred tax
assets related to the Tax Cuts and Jobs Act of 2017. Adjustments in 2015 included a $3.6 million ($0.24 per share) after-tax gain on a pension plan curtailment. There
were no adjustments in 2016 and 2014. Adjusted diluted earnings per share is a non-GAAP measure. This adjusted measure is defined in the Company’s Form 10-K.
Te Shareholders and Board of Directors | Tompkins Financial Corporation:
Report of Independent Registered Public Accounting Firm
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, 2018 and
2017, and the related consolidated statements of income, comprehensive income, cash fows, and changes in shareholders’
equity for each of the years in the three-year period ended December 31, 2018 (not presented herein); and in our report
dated March 1, 2019, we expressed an unqualifed opinion on those consolidated fnancial statements.
In our opinion, the information set forth in the accompanying condensed consolidated fnancial statements is fairly stated,
in all material respects, in relation to the consolidated fnancial statements from which it has been derived.
Albany, NY
March 1, 2019
22 — 2018 CORPOR ATE REPORT | FINANCIAL HIGHLIGHTS
Tompkins Financial | CO R P O R ATI O N B OAR D O F D I R ECTO R S
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Frank C. Milewski
Retired VP Regional Operations
Pathways Health
Michael H. Spain
Executive Vice President
Brown & Brown
Alfred J. Weber
President, Tweed-Weber-Danks, Inc.
Craig Yunker
Managing Partner, CY Farms
* Retiring May 2019
Tomas R. Rochon
Chairman
President, ERB
Stephen S. Romaine
President & CEO
James W. Fulmer
Vice Chairman
John E. Alexander
Founder, Te CBORD Group, Inc.
Paul J. Battaglia, CPA
Retired Director
Freed Maxick, CPAs, P.C.
Daniel J. Fessenden
Executive Director
Fred L. Emerson Foundation, Inc.
Susan A. Henry, Ph.D., Professor*
Department of Molecular Biology
and Genetics
Cornell University
2018 CORPOR ATE REPORT | CORPOR ATION B OARD OF DIRECTOR S — 23
B OAR D S O F D I R EC TO R S
TOMPKINS TRUST COMPANY
TOMPKINS BANK OF CASTILE
TOMPKINS MAHOPAC BANK
TOMPKINS VIST BANK
Stephen S. Romaine
Chairman
President & CEO
Tompkins Financial Corporation
James W. Fulmer
Chairman
Vice Chairman
Tompkins Financial Corporation
Michael H. Spain
Chairman
Executive Vice President
Brown & Brown
Alfred J. Weber
Chairman
President
Tweed-Weber-Danks, Inc.
Gregory J. Hartz
President & CEO
John M. McKenna
President & CEO
Gerald J. Klein, Jr.
President & CEO
Scott L. Gruber
President & CEO
John E. Alexander
Founder
Te CBORD Group, Inc.
Larry F. Baum
Founder
Te Computing Center
Daniel J. Fessenden
Executive Director
Fred L. Emerson
Foundation, Inc.
Susan A. Henry, Ph.D.*
Professor
Department of Molecular
Biology and Genetics
Cornell University
Dr. Ryan Lombardi
Vice President
Student & Campus Life
Cornell University
Jennifer Tegan
Partner and VP Finance/
Administration
Cayuga Venture Fund
* Retiring May 2019
Paul J. Battaglia, CPA
Retired Director
Freed Maxick, CPAs, P.C.
Joseph G. Bucci Jr.
Environmental Manager
American Rock Salt
Company, LLC
David N. DeLaVergne
Retired Senior Vice President
Tompkins Bank of Castile
John D. McClurg
President
McClurg Chrysler
Dodge Jeep, Inc.
& McClurg Chevrolet Buick, Inc.
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Francis M. Fetsko
EVP, CFO, COO & Treasurer
Tompkins Financial Corporation
Edward C. Barrett, CPA
Retired EVP & CFO
Tompkins VIST Bank
James W. Fulmer
Vice Chairman
Tompkins Financial Corporation
James W. Fulmer
Vice Chairman
Tompkins Financial Corporation
Ita M. Rahilly, CPA, AEP*
Partner
RBT CPAs, LLP
Philip E. Hughes, Esq., CPA
Vice Chairman
Keystone Industries
Kevin J. Plunkett*
Director of Strategic Initiatives
Simone Development
Companies
Tomas R. Rochon
President, ERB
Patricia A. Johnson
VP of Finance & Administration
Lehigh University
Frank C. Milewski
Retired VP Regional Operations
Pathways Health
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
Harry J. O’Neill, III
President
Empire Group
Stephen R. Stoddard, DVM
Partner
Perry Veterinary Clinic
C. Compton Spain
Attorney, Spain & Spain, PC
Craig Yunker
Managing Partner, CY Farms
* Elected July 2018
Karen A. Rightmire*
Executive Director
Te Wyomissing Foundation
Stephen S. Romaine
President & CEO
Tompkins Financial Corporation
* Retired December 31, 2018
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
24 — 2018 CORPOR ATE REPORT | BOARDS OF DIRECTOR S
TOMPKINS FINANCIAL
CORPORATION
CORPORATE OFFICERS
Stephen S. Romaine
President & CEO
David S. Boyce
Executive Vice President
Francis M. Fetsko
Executive Vice President,
CFO, COO & Treasurer
Alyssa H. Fontaine
Executive Vice President &
General Counsel
Scott L. Gruber
Executive Vice President
Gregory J. Hartz
Executive Vice President
Brian A. Howard
Executive Vice President
Gerald J. Klein, Jr.
Executive Vice President
John M. McKenna
Executive Vice President
Susan M. Valenti
Executive Vice President,
Corporate Marketing Ofcer
Steven W. Cribbs
Senior Vice President,
Chief Risk Ofcer
Bradley G. James
Senior Vice President,
Chief Technology Ofcer
Bonita N. Lindberg
Senior Vice President,
Director of Human Resources
Janet L. Hewitt
Assistant Vice President,
Corporate Administrative &
Investor Relations Ofcer
Kathleen A. Manley
Assistant Vice President,
Corporate Secretary
Corporate | I N F O RM ATI O N
CORPORATE OFFICE
Tompkins Financial Corporation
P.O. Box 460
Ithaca, NY 14851
(888) 503-5753
Website:
www.tompkinsfnancial.com
E-mail:
shareholder@tompkinsfnancial.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.tompkinsfnancialadvisors.com
STOCK LISTING
Tompkins Financial Corporation
common stock is traded on
the NYSE American under the
symbol TMP.
Te Tompkins Financial Stock
Purchase Plan is administered
by American Stock Transfer &
Trust Company, LLC as transfer
agent for Tompkins Financial
Corporation. It ofers a convenient
way for shareholders to increase
their investment in the Company.
Te 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.astfnancial.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.astfnancial.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@astfnancial.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@tompkinsfnancial.com
Form 10-K
Copies of the Company’s Form
10-K (Annual Report) for 2018, fled
with the Securities and Exchange
Commission, may be obtained by
shareholders, by written request,
from Francis M. Fetsko, Executive
Vice President and Chief Financial
Ofcer, P.O. Box 460, Ithaca, NY
14851.
Copies can also be obtained
from our website:
www.tompkinsfnancial.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.
Te savings below are achieved
when PC recycled paper is used in
place of virgin fber. Tis project
uses 4,864 lbs of paper which has a
postconsumer recycled percentage
of 10%.
70 trees preserved for the future
580 lbs waterborne waste not created
2,900 gallons wastewater fow saved
190 lbs solid waste not generated
2,000 lbs net greenhouse gases prevented
2,230,000 BTUs energy not consumed
† Investment Services provided through Tompkins Wealth Advisors. Trust and Estate Services provided through Tompkins Trust Company.
Securities and advisory services ofered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Insurance products ofered through LPL Financial or its licensed afliates. Te
investment products sold through LPL Financial are not insured Tompkins Trust Company deposits and are not FDIC insured. Tese products are not obligations of Tompkins Trust Company and are
not endorsed, recommended or guaranteed by Tompkins Trust Company or any government agency. Te value of the investment may fuctuate, 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 afliated with LPL Financial.
2018 CORPOR ATE REPORT | CORPOR ATE INFORM ATION — 25