Segment and Related Information

9 Months Ended

Sep. 30, 2019

The Company manages its operations through three reportable business segments in accordance with the standards set forth in FASB ASC 280, “Segment Reporting”: (i) banking (“Banking”), (ii) insurance (“Tompkins Insurance”) and (iii) wealth management (“Tompkins Financial Advisors”). The Company’s insurance services and wealth management services, other than trust services, are managed separately from the Banking segment.

Banking

The Banking segment is primarily comprised of the Company’s four banking subsidiaries: Tompkins Trust Company, a commercial bank with fourteen banking offices located in Ithaca, NY and surrounding communities; The Bank of Castile (DBA Tompkins Bank of Castile), a commercial bank with eighteen banking offices located in the Genesee Valley region of New York State as well as Monroe County; Mahopac Bank (DBA Tompkins Mahopac Bank), a commercial bank with fourteen full-service banking offices located in the counties north of New York City; and VIST Bank (DBA Tompkins VIST Bank), a banking organization with twenty banking offices headquartered and operating in the areas surrounding southeastern Pennsylvania.

Insurance

The Company provides property and casualty insurance services and employee benefits consulting through Tompkins Insurance Agencies, Inc., a 100% wholly-owned subsidiary of the Company, headquartered in Batavia, New York. Tompkins Insurance is an independent insurance agency, representing many major insurance carriers and provides employee benefit consulting to employers in Western and Central New York and Southeastern Pennsylvania, assisting them with their medical, group life insurance and group disability insurance. Tompkins Insurance has five stand-alone offices in Western New York.

Wealth Management

The Wealth Management segment is generally organized under the Tompkins Financial Advisors brand. Tompkins Financial Advisors offers a comprehensive suite of financial services to customers, including trust and estate services, investment management and financial and insurance planning for individuals, corporate executives, small business owners and high net worth individuals. Tompkins Financial Advisors has offices in each of the Company’s four subsidiary banks.

Summarized financial information concerning the Company’s reportable segments and the reconciliation to the Company’s consolidated results is shown in the following table. Investment in subsidiaries is netted out of the presentations below. The “Intercompany” column identifies the intercompany activities of revenues, expenses and other assets between the banking, insurance and wealth management services segments. The Company accounts for intercompany fees and services at an estimated fair value according to regulatory requirements for the services provided. Intercompany items relate primarily to the use of human resources, information systems, accounting and marketing services provided by any of the banks and the holding company. All other accounting policies are the same as those described in the summary of significant accounting policies in the 2018 Annual Report on Form 10-K.



As of and for the three months ended September 30, 2019
(In thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	65,775	$	1	$	0	$	(1	)	$	65,775
Interest expense	12,620		0		0		(1		)	12,619
Net interest income	53,155		1		0		0			53,156
Provision for loan and lease losses	1,320		0		0		0			1,320
Noninterest income	7,134		8,620		4,310		(530		)	19,534
Noninterest expense	36,309		6,672		3,204		(530		)	45,655
Income before income tax expense	22,660		1,949		1,106		0			25,715
Income tax expense	4,669		526		283		0			5,478
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	17,991		1,423		823		0			20,237
Less: Net income attributable to noncontrolling interests	31		0		0		0			31
Net Income attributable to Tompkins Financial Corporation	$	17,960	$	1,423	$	823	$	0		$	20,206

Depreciation and amortization	$	2,483	$	56	$	10	$	0		$	2,549
Assets	6,575,073		42,753		23,497		(13,341		)	6,627,982
Goodwill	64,370		19,866		8,211		0			92,447
Other intangibles, net	3,472		3,011		164		0			6,647
Net loans and leases	4,815,702		0		0		0			4,815,702
Deposits	5,382,174		0		0		(12,184		)	5,369,990
Total Equity	605,572		33,116		21,177		0			659,865



As of and for the three months ended September 30, 2018
(In thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	63,984	$	1	$	0	$	(1	)	$	63,984
Interest expense	10,822		0		0		(1		)	10,821
Net interest income	53,162		1		0		0			53,163
Provision for loan and lease losses	272		0		0		0			272
Noninterest income	6,777		7,998		4,345		(517		)	18,603
Noninterest expense	36,077		6,397		3,176		(517		)	45,133
Income before income tax expense	23,590		1,602		1,169		0			26,361
Income tax expense	4,737		422		268		0			5,427
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,853		1,180		901		0			20,934
Less: Net income attributable to noncontrolling interests	32		0		0		0			32
Net Income attributable to Tompkins Financial Corporation	$	18,821	$	1,180	$	901	$	0		$	20,902

Depreciation and amortization	$	2,252	$	56	$	11	$	0		$	2,319
Assets	6,697,701		41,910		19,703		(12,354		)	6,746,960
Goodwill	64,370		19,702		8,211		0			92,283
Other intangibles, net	4,415		3,345		229		0			7,989
Net loans and leases	4,761,351		0		0		0			4,761,351
Deposits	5,036,934		0		0		(11,852		)	5,025,082
Total Equity	548,330		33,248		17,566		0			599,144



Nine months ended September 30, 2019
(In thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	196,797	$	2	$	0	$	(3	)	$	196,796
Interest expense	39,410		0		0		(2		)	39,408
Net interest income	157,387		2		0		(1		)	157,388
Provision for loan and lease losses	2,366		0		0		0			2,366
Noninterest income	21,852		24,621		12,567		(1,579		)	57,461
Noninterest expense	108,704		19,279		9,529		(1,578		)	135,934
Income before income tax expense	68,169		5,344		3,038		(2		)	76,549
Income tax expense	13,650		1,418		748		0			15,816
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	54,519		3,926		2,290		(2		)	60,733
Less: Net income attributable to noncontrolling interests	95		0		0		0			95
Net Income attributable to Tompkins Financial Corporation	$	54,424	$	3,926	$	2,290	$	(2	)	$	60,638

Depreciation and amortization	$	7,296	$	168	$	31	$	0		$	7,495



Nine months ended September 30, 2018
(In thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	186,267	$	2	$	0	$	(2	)	$	186,267
Interest expense	27,705		0		0		(2		)	27,703
Net interest income	158,562		2		0		0			$	158,564
Provision for loan and lease losses	1,884		0		0		0			1,884
Noninterest income	23,131		22,974		12,960		(1,474		)	57,591
Noninterest expense	107,120		18,918		9,275		(1,474		)	133,839
Income before income tax expense	72,689		4,058		3,685		0			$	80,432
Income tax expense	15,040		1,046		853		0			16,939
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	57,649		3,012		2,832		0			$	63,493
Less: Net income attributable to noncontrolling interests	96		0		0		0			96
Net Income attributable to Tompkins Financial Corporation	$	57,553	$	3,012	$	2,832	$	0		$	63,397

Depreciation and amortization	$	6,727	$	174	$	36	$	0		$	6,937