Segment and Related Information

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 March 31, 2019
(in thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	64,929	$	1	$	0	$	(2	)	$	64,928
Interest expense	13,016		0		0		(2		)	13,014
Net interest income	51,913		1		0		0			51,914
Provision for loan and lease losses	445		0		0		0			445
Noninterest income	7,568		8,148		4,198		(507		)	19,407
Noninterest expense	35,327		6,277		3,112		(507		)	44,209
Income before income tax expense	23,709		1,872		1,086		0			26,667
Income tax expense	4,834		490		271		0			5,595
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,875		1,382		815		0			21,072
Less: Net income attributable to noncontrolling interests	32		0		0		0			32
Net Income attributable to Tompkins Financial Corporation	$	18,843	$	1,382	$	815	$	0		$	21,040

Depreciation and amortization	$	2,414	$	56	$	10	$	0		$	2,480
Assets	6,689,882		41,156		21,573		(13,892		)	6,738,719
Goodwill	64,370		19,702		8,211		0			92,283
Other intangibles, net	4,019		3,051		196		0			7,266
Net loans and leases	4,749,372		0		0		0			4,749,372
Deposits	5,003,696		0		0		(13,771		)	4,989,925
Total Equity	593,791		33,774		19,702		0			647,267



As of and for the three months ended March 31, 2018
(in thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	60,140	$	1	$	0	$	(1	)	$	60,140
Interest expense	7,454		0		0		(1		)	7,453
Net interest income	52,686		1		0		0			52,687
Provision for loan and lease losses	567		0		0		0			567
Noninterest income	6,411		7,488		4,408		(477		)	17,830
Noninterest expense	34,757		6,239		3,202		(477		)	43,721
Income before income tax expense	23,773		1,250		1,206		0			26,229
Income tax expense	5,130		350		281		0			5,761
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,643		900		925		0			20,468
Less: Net income attributable to noncontrolling interests	32		0		0		0			32
Net Income attributable to Tompkins Financial Corporation	$	18,611	$	900	$	925	$	0		$	20,436

Depreciation and amortization	$	2,399	$	61	$	13	$	0		$	2,473
Assets	6,602,289		41,046		17,434		(12,641		)	6,648,128
Goodwill	64,370		19,710		8,211		0			92,291
Other intangibles, net	4,871		3,657		263		0			8,791
Net loans and leases	4,664,635		0		0		0			4,664,635
Deposits	4,942,298		0		0		(12,395		)	4,929,903
Total Equity	530,536		33,218		15,657		0			579,411