Tompkins Financial Corp. (TMP, Financial) filed Quarterly Report for the period ended 2009-03-31.
Tompkins Trustco Inc. is a bank holding company for Tompkins County Trust Company. The company conducts commercial and consumer banking business which primarily consists of attracting deposits and using those deposits to originate a variety of commercial consumer and real estate loans. The company provides a full range of money management services including investment management accounts custody accounts living trusts life insurance trusts standby trusts retirement plans and rollovers will trusts estate settlement and financial planning. Tompkins Financial Corp. has a market cap of $480 million; its shares were traded at around $49.48 with a P/E ratio of 16.1 and P/S ratio of 2.6. The dividend yield of Tompkins Financial Corp. stocks is 2.7%. Tompkins Financial Corp. had an annual average earning growth of 4.7% over the past 5 years.
On October 3, 2008 the Emergency Economic Stabilization Act of 2008 (the EESA) was signed into law. The EESA authorizes the U.S. Treasury to, among other things, purchase up to $700 billion of mortgages, mortgage-backed securities and certain other financial instruments from financial institutions for the purpose of stabilizing and providing liquidity to the U.S. financial markets. The Company did not originate or invest in sub-prime assets, and therefore does not expect to participate in the sale of any of our assets into these programs. EESA also immediately increased the FDIC deposit insurance limit from $100,000 to $250,000 through December 31, 2009.
On October 14, 2008, the U.S. Treasury announced that it will purchase equity stakes in a wide variety of banks and thrifts. Under this program, known as the Troubled Asset Relief Program Capital Purchase Program (the TARP Capital Purchase Program), the U.S. Treasury will make $250 billion of capital available (from the $700 billion authorized by the EESA) to U.S. financial institutions through the purchase of preferred stock. In conjunction with the purchase of preferred stock, the U.S. Treasury will receive warrants to purchase common stock with an aggregate market price equal to 15% of the preferred investment. Participating financial institutions will be required to adopt the U.S. Treasurys standards for executive compensation and corporate governance for the period during which the Treasury holds equity issued under the TARP Capital Purchase Program. On November 14, 2008, the Company announced that it had decided not to apply to access funds through the TARP Capital Purchase Program.
The Banking segment reported net income of $6.9 million for the first quarter of 2009, up $291,000 or 4.4% from net income of $6.6 million in first quarter of 2008. First quarter 2008 results included $983,000 of after-tax income, related to the Visa IPO. The increase in net income for the first quarter of 2009 over the same period prior year was mainly the result of strong growth in net interest income. Net interest income for the three months ended March 31, 2009 was up $6.2 million or 31.4%, over same period in 2008, driven by growth in average earning assets and an improved net interest margin. The Companys net interest margin has benefited from disciplined deposit pricing, which has resulted in funding costs decreasing more rapidly than asset yields.
Noninterest income for the three months ended March 31, 2009, was down $1.6 million or 25.1% compared to the same period in 2008. First quarter 2008 noninterest income included $1.6 million of pre-tax gains on the Visa IPO. Service charges on deposit accounts were down 12.1% in the first quarter of 2009 compared to the first quarter of 2008, mainly a result of lower overdraft fees. Gains on the sales of loans totaled $401,000 for the first quarter 2009 compared with a loss of $3,000 for the same period 2008. The historically low market rates for residential loan products in 2009 have increased residential mortgage activity, including refinancings. Net mark-to-market gains on assets and liabilities held at fair value were $314,000 in the first quarter of 2009 compared to net mark-to-market losses of $553,000 for the same period 2008.
The Financial Services segment had net income of $812,000 in the first quarter of 2009, a decrease of $86,000 or 9.6% from net income of $898,000 in the same quarter of the prior year. Noninterest income for the first quarter of 2009 was down $165,000 or 2.5% from the same period in 2008. Trust and investment services fees are generally based on the market value of assets within each account. Volatility in the equity and bond markets impacts the market value of assets and related investment fees. Insurance commissions and fees were up for the first quarter 2009 compared to the same period prior year. Noninterest expenses for the first quarter of 2009 were down $44,000 or 0.9% from the same period in the prior year.
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Tompkins Trustco Inc. is a bank holding company for Tompkins County Trust Company. The company conducts commercial and consumer banking business which primarily consists of attracting deposits and using those deposits to originate a variety of commercial consumer and real estate loans. The company provides a full range of money management services including investment management accounts custody accounts living trusts life insurance trusts standby trusts retirement plans and rollovers will trusts estate settlement and financial planning. Tompkins Financial Corp. has a market cap of $480 million; its shares were traded at around $49.48 with a P/E ratio of 16.1 and P/S ratio of 2.6. The dividend yield of Tompkins Financial Corp. stocks is 2.7%. Tompkins Financial Corp. had an annual average earning growth of 4.7% over the past 5 years.
Highlight of Business Operations:
Net income for the first quarter of 2009 was $7.7 million, or $0.79 per diluted share, compared to $7.5 million or $0.77 per diluted share for the first quarter of 2008. Per share results for the first quarter of 2009 represent an increase of 2.6% from the first quarter of 2008. The favorable performance in 2009 is primarily due to growth in net interest income, which was driven by growth in average earning assets and lower funding costs. The first quarter of 2008 included $983,000 of after tax income ($1.6 million pre-tax) related to the Visa, Inc. initial public offering (the Visa IPO). This item added $0.10 to 2008 diluted earnings per share.On October 3, 2008 the Emergency Economic Stabilization Act of 2008 (the EESA) was signed into law. The EESA authorizes the U.S. Treasury to, among other things, purchase up to $700 billion of mortgages, mortgage-backed securities and certain other financial instruments from financial institutions for the purpose of stabilizing and providing liquidity to the U.S. financial markets. The Company did not originate or invest in sub-prime assets, and therefore does not expect to participate in the sale of any of our assets into these programs. EESA also immediately increased the FDIC deposit insurance limit from $100,000 to $250,000 through December 31, 2009.
On October 14, 2008, the U.S. Treasury announced that it will purchase equity stakes in a wide variety of banks and thrifts. Under this program, known as the Troubled Asset Relief Program Capital Purchase Program (the TARP Capital Purchase Program), the U.S. Treasury will make $250 billion of capital available (from the $700 billion authorized by the EESA) to U.S. financial institutions through the purchase of preferred stock. In conjunction with the purchase of preferred stock, the U.S. Treasury will receive warrants to purchase common stock with an aggregate market price equal to 15% of the preferred investment. Participating financial institutions will be required to adopt the U.S. Treasurys standards for executive compensation and corporate governance for the period during which the Treasury holds equity issued under the TARP Capital Purchase Program. On November 14, 2008, the Company announced that it had decided not to apply to access funds through the TARP Capital Purchase Program.
The Banking segment reported net income of $6.9 million for the first quarter of 2009, up $291,000 or 4.4% from net income of $6.6 million in first quarter of 2008. First quarter 2008 results included $983,000 of after-tax income, related to the Visa IPO. The increase in net income for the first quarter of 2009 over the same period prior year was mainly the result of strong growth in net interest income. Net interest income for the three months ended March 31, 2009 was up $6.2 million or 31.4%, over same period in 2008, driven by growth in average earning assets and an improved net interest margin. The Companys net interest margin has benefited from disciplined deposit pricing, which has resulted in funding costs decreasing more rapidly than asset yields.
Noninterest income for the three months ended March 31, 2009, was down $1.6 million or 25.1% compared to the same period in 2008. First quarter 2008 noninterest income included $1.6 million of pre-tax gains on the Visa IPO. Service charges on deposit accounts were down 12.1% in the first quarter of 2009 compared to the first quarter of 2008, mainly a result of lower overdraft fees. Gains on the sales of loans totaled $401,000 for the first quarter 2009 compared with a loss of $3,000 for the same period 2008. The historically low market rates for residential loan products in 2009 have increased residential mortgage activity, including refinancings. Net mark-to-market gains on assets and liabilities held at fair value were $314,000 in the first quarter of 2009 compared to net mark-to-market losses of $553,000 for the same period 2008.
The Financial Services segment had net income of $812,000 in the first quarter of 2009, a decrease of $86,000 or 9.6% from net income of $898,000 in the same quarter of the prior year. Noninterest income for the first quarter of 2009 was down $165,000 or 2.5% from the same period in 2008. Trust and investment services fees are generally based on the market value of assets within each account. Volatility in the equity and bond markets impacts the market value of assets and related investment fees. Insurance commissions and fees were up for the first quarter 2009 compared to the same period prior year. Noninterest expenses for the first quarter of 2009 were down $44,000 or 0.9% from the same period in the prior year.
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