Regulations and Supervision

12 Months Ended

Dec. 31, 2017

Banking and Thrift [Abstract]

Regulations and Supervision

Regulations and Supervision

Capital Requirements:

The Company and its subsidiary banks are subject to various regulatory capital requirements administered by Federal bank regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s business, results of operation and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (PCA), banks must meet specific guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classifications of the Company and its subsidiary banks are also subject to qualitative judgments by regulators concerning components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of common equity Tier I capital, total capital and Tier 1 capital to risk-weighted assets (as defined in the regulation), and of Tier 1 capital to average assets (as defined in the regulation). Management believes that the Company and its subsidiary banks meet all capital adequacy requirements to which they are subject.

The Company early adopted ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". ASU 2018-02 permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate associated with the enactment of the Tax Cuts and Jobs Act in December 2017. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted 21 percent corporate income tax rate. The adoption resulted in the reclassification from accumulated other comprehensive income (loss) to retained earnings totaling $10.0 million, reflected in the Consolidated Statements of Changes in Shareholders' Equity.

As of December 31, 2017, the most recent notifications from Federal bank regulatory agencies categorized Tompkins Trust Company, The Bank of Castile, Mahopac Bank, and VIST Bank as “well capitalized” under the regulatory framework for PCA. To be categorized as well capitalized, the Company and its subsidiary banks must maintain total risk-based, Tier 1 risk-based, common equity Tier 1 capital and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the capital category of the Company or its subsidiary banks.

The following table presents actual and required capital ratios as of December 31, 2017 and December 31, 2016 for Tompkins and its four banking subsidiaries. The minimum required capital amounts presented include the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

Actual capital amounts and ratios of the Company and its subsidiary banks are as follows:

	Actual	Minimum Capital Required- Basel III Fully Phased-In	Required to be Considered Well Capitalized
(dollar amounts in thousands)	Amount/Ratio	Amount/Ratio	Amount/Ratio
December 31, 2017
Total Capital (to risk-weighted assets)
The Company (consolidated)	$585,013 /12.3%	$500,676/>10.5%	$476,835/>10.0%
Trust Company	$171,774/12.5%	$144,235 />10.5%	$137,366 />10.0%
Castile	$125,510/11.3%	$117,042 />10.5%	$111,469 />10.0%
Mahopac	$117,740/12.1%	$102,555 />10.5%	$97,672 />10.0%
VIST	$148,185/11.4%	$136,518 />10.5%	$130,017 />10.0%
Common EquityTier 1 Capital (to risk-weighted assets)
The Company (consolidated)	$526,822/11.1%	$333,784/>7.0%	$309,943/>6.5%
Trust Company	$160,047/11.7%	$96,156 />7.0%	$89,288 />6.5%
Castile	$116,783/10.5%	$78,028>7.0%	$72,455 />6.5%
Mahopac	$105,979/10.9%	$68,370 />7.0%	$63,487 />6.5%
VIST	$138,901/10.7%	$91,012 />7.0%	$84,511 />6.5%
Tier 1 Capital (to risk-weighted assets)
The Company (consolidated)	$543,514/11.4%	$405,310/>8.5%	$381,468/>8.0%
Trust Company	$160,047/11.7%	$116,761 />8.5%	$109,893 />8.0%
Castile	$116,783/10.5%	$94,748 />8.5%	$89,175 />8.0%
Mahopac	$105,979/10.9%	$83,021 />8.5%	$78,137 />8.0%
VIST	$138,901/10.7%	$110,515 />8.5%	$104,014 />8.0%
Tier 1 Capital (to average assets)
The Company (consolidated)	$543,514/8.4%	$257,887/>4.0%	$322,359/>5.0%
Trust Company	$160,047/7.8%	$82,425 />4.0%	$103,031 />5.0%
Castile	$116,783/8.1%	$57,833 />4.0%	$72,292 />5.0%
Mahopac	$105,979/8.1%	$52,463 />4.0%	$65,578 />5.0%
VIST	$138,901/8.6%	$64,647 />4.0%	$80,809 />5.0%
December 31, 2016
Total Capital (to risk-weighted assets)
The Company (consolidated)	$540,109 /12.2%	$463,995/>10.5%	$441,900/>10.0%
Trust Company	$154,062/12.3%	$131,092 />10.5%	$124,850 />10.0%
Castile	$114,282/10.7%	$112,480 />10.5%	$107,124 />10.0%
Mahopac	$111,727/12.6%	$92,956 />10.5%	$88,530 />10.0%
VIST	$141,193/11.9%	$124,840 />10.5%	$118,895 />10.0%
Common EquityTier 1 Capital (to risk-weighted assets)
The Company (consolidated)	$486,006/11.0%	$309,330/>7.0%	$287,235/>6.5%
Trust Company	$144,672/11.6%	$87,395 />7.0%	$81,152 />6.5%
Castile	$105,998/9.9%	$74,986 />7.0%	$69,630 />6.5%
Mahopac	$100,956/11.4%	$61,971 />7.0%	$57,544 />6.5%
VIST	$133,505/11.2%	$83,226 />7.0%	$77,282 />6.5%
Tier 1 Capital (to risk-weighted assets)
The Company (consolidated)	$502,525/11.4%	$375,615/>8.5%	$353,520/>8.0%
Trust Company	$144,672/11.6%	$106,122 />8.5%	$99,880 />8.0%
Castile	$105,998/9.9%	$91,055 />8.5%	$85,699 />8.0%
Mahopac	$100,956/11.4%	$75,250 />8.5%	$70,824 />8.0%
VIST	$133,505/11.2%	$101,061 />8.5%	$95,116 />8.0%
Tier 1 Capital (to average assets)
The Company (consolidated)	$502,525/8.4%	$238,872/>4.0%	$298,590/>5.0%
Trust Company	$144,672/7.7%	$75,246 />4.0%	$94,057 />5.0%
Castile	$105,998/7.7%	$54,851 />4.0%	$68,563 />5.0%
Mahopac	$100,956/8.4%	$48,333 />4.0%	$60,416 />5.0%
VIST	$133,505/8.9%	$59,984 />4.0%	$74,980 />5.0%