Segment and Related Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment and Related Information

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

Tompkins Community Bank has thirteen banking offices located in Ithaca, NY and surrounding communities; sixteen banking offices located in the Genesee Valley region of New York State as well as Monroe County; fourteen full-service banking offices located in the counties north of New York City; and 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 regional markets.

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 2021 Annual Report on Form 10-K.

Three months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	60,953	$	1	$	0	$	(1)	$	60,953
Interest expense	2,692		0		0		(1)		2,691
Net interest income	58,261		1		0		0		58,262
Provision for credit loss expense	856		0		0		0		856
Noninterest income	6,329		8,573		4,598		(556)		18,944
Noninterest expense	39,395		6,812		3,469		(556)		49,120
Income before income tax expense	24,339		1,762		1,129		0		27,230
Income tax expense	5,465		494		370		0		6,329
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,874		1,268		759		0		20,901
Less: Net income attributable to noncontrolling interests	32		0		0		0		32
Net Income attributable to Tompkins Financial Corporation	$	18,842	$	1,268	$	759	$	0	$	20,869
Depreciation and amortization	$	2,515	$	44	$	36	$	0	$	2,595
Assets	7,786,614		47,222		26,915		(18,290)		7,842,461
Goodwill	64,500		19,866		8,081		0		92,447
Other intangibles, net	1,236		1,830		58		0		3,124
Net loans and leases	5,118,710		0		0		0		5,118,710
Deposits	6,786,754		0		(847)		(16,386)		6,769,521
Total Equity	563,994		34,860		25,464		0		624,318

Three months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	59,843	$	0	$	0	$	(8)	$	59,835
Interest expense	4,997		0		0		(8)		4,989
Net interest income	54,846		0		0		0		54,846
Credit for credit loss expense	(3,071)		0		0		0		(3,071)
Noninterest income	6,447		8,163		4,808		(560)		18,858
Noninterest expense	37,879		6,760		3,363		(560)		47,442
Income before income tax expense	26,485		1,403		1,445		0		29,333
Income tax expense	5,729		401		341		0		6,471
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	20,756		1,002		1,104		0		22,862
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net Income attributable to Tompkins Financial Corporation	$	20,725	$	1,002	$	1,104	$	0	$	22,831
Depreciation and amortization	$	2,527	$	55	$	14	$	0	$	2,596
Assets	7,987,751		46,590		30,435		(76,568)		7,988,208
Goodwill	64,370		19,866		8,211		0		92,447
Other intangibles, net	1,994		2,201		79		0		4,274
Net loans and leases	5,127,624		0		0		0		5,127,624
Deposits	6,851,924		0		0		(14,924)		6,837,000
Total Equity	667,007		33,101		28,145		0		728,253

Six months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	120,129	$	2	$	0	$	(2)	$	120,129
Interest expense	5,255		0		0		(2)		5,253
Net interest income	114,874		2		0		0		114,876
Provision for credit loss expense	336		0		0		0		336
Noninterest income	12,522		18,007		9,532		(1,132)		38,929
Noninterest expense	76,584		13,314		7,193		(1,132)		95,959
Income before income tax expense	50,476		4,695		2,339		0		57,510
Income tax expense	11,630		1,310		365		0		13,305
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	38,846		3,385		1,974		0		44,205
Less: Net income attributable to noncontrolling interests	63		0		0		0		63
Net Income attributable to Tompkins Financial Corporation	$	38,783	$	3,385	$	1,974	$	0	$	44,142
Depreciation and amortization	$	5,093	$	88	$	64	$	0	$	5,245

Six months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	119,597	$	2	$	0	$	(9)	$	119,590
Interest expense	9,716		0		0		(9)		9,707
Net interest income	109,881		2		0		0		109,883
Provision for credit loss expense	(4,901)		0		0		0		(4,901)
Noninterest income	12,759		17,581		9,591		(1,090)		38,841
Noninterest expense	73,206		13,197		6,640		(1,090)		91,953
Income before income tax expense	54,335		4,386		2,951		0		61,672
Income tax expense	11,243		1,203		705		0		13,151
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	43,092		3,183		2,246		0		48,521
Less: Net income attributable to noncontrolling interests	64		0		0		0		64
Net Income attributable to Tompkins Financial Corporation	$	43,028	$	3,183	$	2,246	$	0	$	48,457
Depreciation and amortization	$	4,965	$	110	$	27	$	0	$	5,102