Tompkins Financial Stock

Tompkins Financial Corporation (Tompkins) operates as a locally oriented, community-based financial services company.

The company offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services.

As of December 31, 2022, the company had one wholly-owned banking subsidiary, Tompkins Community Bank. Banking services consist primarily of attracting deposits from the areas served by Tompkins Community Bank's banking offices (in New York and Pennsylvania), and using those deposits to originate a variety of commercial loans, agricultural loans, consumer loans, real estate loans, and leases in those same areas.

The company has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc. (Tompkins Insurance). Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services.

The company’s strategy centers around its core values and a commitment to delivering long-term value to its clients, communities, and shareholders. A key strategic initiative for the company is a focus on responsible and sustainable growth, including initiatives to grow organically through its businesses, as well as through possible acquisitions of financial institutions, branches, and financial services businesses. As such, the company has acquired, and from time to time considers acquiring, banks, thrift institutions, branch offices of banks or thrift institutions, or other businesses that would complement the company’s business or its geographic reach. The company generally targets merger or acquisition partners that are culturally similar and have experienced management and possess either significant market presence or have potential for improved profitability through financial management, economies of scale and expanded services. The company has pursued acquisition opportunities in the past, and continues to review new opportunities.

Segments

The company operates through three business segments: Banking, Insurance, and Wealth Management.

Banking

Banking segment’s services consist primarily of attracting deposits from the areas served by the company’s banking subsidiary and using those deposits to originate a variety of commercial loans, agricultural loans, consumer loans, real estate loans, and leases in those same areas.

The company maintains a portfolio of securities, such as the U.S. Treasury securities, obligations of the U.S. government agencies and U.S. government sponsored entities, obligations of states and political subdivisions thereof, and equity securities. The company has operated its insurance agency subsidiary, Tompkins Insurance, since 2001.

Insurance

Insurance segment’s services include property and casualty insurance, employee benefit consulting, life, long-term care and disability insurance. Tompkins Insurance is headquartered in Batavia, New York. Tompkins Insurance offers services to customers of Tompkins Community Bank by sharing offices with Tompkins Community Bank. In addition to these shared offices, Tompkins Insurance has stand-alone offices in Western New York, and stand-alone office in Tompkins County, New York.

Wealth Management

Wealth Management segment’s services consist of investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. Wealth management services are provided under the trade name Tompkins Financial Advisors. Tompkins Financial Advisors has office locations, and services are available, at certain of Tompkins Community Bank's branch locations.

Subsidiaries

Tompkins Community Bank

Tompkins Community Bank operates branches in New York and Pennsylvania. Tompkins has operated in Ithaca, New York and surrounding communities since 1836.

Tompkins Community Bank provides wealth management services through Tompkins Financial Advisors, a division of Tompkins Community Bank. A description of markets served by Tompkins Community Bank are included below:

Tompkins Central New York (‘CNY’)

The company operates branches in its CNY market, with the largest market area being Tompkins County. Tompkins Community Bank has a full-service office in Cortland, New York and a full-service office in Auburn, New York. Both of these offices are located in counties contiguous to Tompkins County. Tompkins Community Bank also has a full service branch in Fayetteville, New York which is located in Onondaga County.

Tompkins Western New York (‘WNY’)

The company operates banking offices in its WNY market, in towns situated in and around the areas commonly known as the Genesee Valley region of New York State. The main business office for WNY is located in Batavia, New York and is shared with Tompkins Insurance. The company’s WNY market is a six-county market, much of which is rural in nature, but also includes Monroe County, where the city of Rochester is located, and Erie County located near Buffalo, New York.

Tompkins Hudson Valley New York (‘HV’)

The company operates banking offices in its HV market. The banking offices include full-service offices in Putnam County, New York; full-service offices in Dutchess County, New York; and full-service offices in Westchester County, New York.

Tompkins Pennsylvania (‘PA’)

PA operates banking offices in Pennsylvania, including limited-service office. The banking offices include offices in Berks County, offices in Montgomery County, office in Philadelphia County, office in Delaware County, and office in Schuylkill County. The main office is located in Wyomissing, Pennsylvania.

Tompkins Insurance Agencies, Inc.

Tompkins Insurance is headquartered in Batavia, New York. Insurance services include property and casualty insurance, employee benefit consulting, and life, long-term care and disability insurance. Over the years, Tompkins Insurance has acquired smaller insurance agencies in the market areas served by Tompkins Community Bank and successfully consolidated them into Tompkins Insurance. Tompkins Insurance offers services to customers of the Tompkins Community Bank by sharing offices within Western New York, Central New York and Pennsylvania. In addition to these shared offices, Tompkins Insurance has stand-alone offices in Western New York, and in Tompkins County.

Deposits

As of December 31, 2022, the company’s deposits were interest bearing deposits, such as time deposits, and checking, savings and money market accounts; and noninterest bearing deposits.

Supervision and Regulation

As a registered financial holding company, the company is regulated under the Bank Holding Company Act of 1956 as amended (BHC Act), and is subject to examination and comprehensive regulation by the Federal Reserve Board (FRB). The company is also subject to the jurisdiction of the Securities and Exchange Commission (SEC) and is subject to disclosure and regulatory requirements under the Securities Act of 1933, as amended (the ‘Securities Act’), and the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’).

The company's activities, or those of its subsidiary bank, Tompkins Community Bank, are also subject to regulation under the Federal Reserve Act, the Federal Deposit Insurance Act, the Dodd-Frank Act, the Truth-in-Lending Act (which governs disclosures of credit terms to consumer borrowers), the Truth-in-Savings Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act (which governs the manner in which consumer debts may be collected by collection agencies), the Home Mortgage Disclosure Act (which requires financial institutions to provide certain information about home mortgage and refinanced loans), the Servicemembers Civil Relief Act, Section 5 of the Federal Trade Commission Act (which prohibits unfair or deceptive acts and practices in or affecting commerce), the Real Estate Settlement Procedures Act, and the Electronic Funds Transfer Act, as well as other federal, state and local laws.

Tompkins Community Bank is subject to examination and comprehensive regulation by various regulatory authorities, including the Federal Deposit Insurance Corporation (‘FDIC’), and the New York State Department of Financial Services (‘NYSDFS’). Each of these agencies issue regulations and requires the filing of reports describing the activities and financial condition of the entities under its jurisdiction. Likewise, such agencies conduct examinations on a recurring basis to evaluate the safety and soundness of the institutions, and to test compliance with various regulatory requirements, including consumer protection, privacy, fair lending, the Community Reinvestment Act, the Bank Secrecy Act, the sale of non-deposit investments, electronic data processing, and trust department activities.

The company’s insurance subsidiary is subject to examination and regulation by the NYSDFS and the Pennsylvania Insurance Department.

The company’s wealth management subsidiary is subject to examination and regulation by various regulatory agencies. The trust division of Tompkins Community Bank is subject to examination and comprehensive regulation by the FDIC and NYSDFS.

The company is a member of the FHLB of New York (FHLBNY).

Tompkins Community Bank's authority to extend credit to its directors, executive officers and 10% shareholders (collectively, ‘Reg O Insiders’), as well as to entities controlled by such persons, is governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O as promulgated by the FRB.

Substantially all of the deposits of Tompkins Community Bank's deposits are insured up to applicable limits by the Deposit Insurance Fund (DIF) of the FDIC and are subject to deposit insurance assessments to maintain the DIF. Tompkins Community Bank pays deposit insurance premiums to the FDIC based on assessment rates established by the FDIC.

The common stock of the company is registered with the SEC under the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’). Therefore, the company is subject to the reporting, information disclosure, proxy solicitation and other requirements imposed on public companies by the SEC under the Exchange Act. Additionally, the company’s insiders are subject to security trading limitations and are required to file insider ownership reports with the SEC.

The SEC and NYSE American have adopted regulations under the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley) and the Dodd-Frank Act that apply to the company as an exchange-traded, public company, which seek to improve corporate governance, accounting, and reporting requirements, provide enhanced penalties for financial reporting improprieties and improve the reliability of disclosures in SEC filings.

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), the Bank Secrecy Act, the Money Laundering Control Act, and other federal laws, collectively impose obligations on all financial institutions, including the company, to implement policies, procedures and controls, which are reasonably designed to detect and report instances of money laundering and the financing of terrorism.

In connection with its lending and leasing activities, Tompkins Community Bank is subject to a number of federal and state laws designed to protect borrowers and promote lending. These consumer financial laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transaction Act of 2003, Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Truth in Lending Act, the Truth in Savings Act, the Home Mortgage Disclosure Act, and the Real Estate Settlement Procedures Act, and similar laws at the state level. Tompkins Community Bank's failure to comply with any of the consumer financial laws can result in civil actions, regulatory enforcement action by the federal banking agencies and the U.S. Department of Justice.

Tompkins Community Bank is required to comply with the rules of the Consumer Financial Protection Bureau (CFPB), however, these rules are generally enforced by the company’s primary regulator, the FDIC.

History

Tompkins Financial Corporation was founded in 1836. The company was incorporated under the laws of the state of New York in 1995.