Segment and Related Information

9 Months Ended

Sep. 30, 2023

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 twelve banking offices located in Ithaca, NY and surrounding communities; fifteen banking offices located in the Genesee Valley region of New York State, which includes Monroe County; thirteen banking offices located in the counties north of New York City; and nineteen 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 the bank and the holding company. All other accounting policies are the same as those described in the summary of significant accounting policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Three Months Ended September 30, 2023
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	75,465	$	1	$	0	$	(1)	$	75,465
Interest expense	24,453		0		0		(1)		24,452
Net interest income	51,012		1		0		0		51,013
Provision for credit loss expense	1,150		0		0		0		1,150
Noninterest income	(57,007)		11,529		4,414		(560)		(41,624)
Noninterest expense	39,648		7,109		3,668		(559)		49,866
(Loss) Income before income tax expense	(46,793)		4,421		746		(1)		(41,627)
Income tax (benefit) expense	(9,701)		1,213		184		0		(8,304)
Net (Loss) Income attributable to noncontrolling interests and Tompkins Financial Corporation	(37,092)		3,208		562		(1)		(33,323)
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net (Loss) Income attributable to Tompkins Financial Corporation	$	(37,123)	$	3,208	$	562	$	(1)	$	(33,354)
Depreciation and amortization	$	2,702	$	44	$	44	$	0	$	2,790
Assets	7,632,733		46,222		28,730		(16,523)		7,691,162
Goodwill	64,655		19,866		8,081		0		92,602
Other intangibles, net	967		1,416		38		0		2,421
Net loans and leases	5,385,524		0		0		0		5,385,524
Deposits	6,645,587		0		0		(22,151)		6,623,436
Total Equity	545,037		36,745		30,574		0		612,356

Three Months Ended September 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	63,670	$	1	$	0	$	(1)	$	63,670
Interest expense	5,560		0		0		(1)		5,559
Net interest income	58,110		1		0		0		58,111
Provision for credit loss expense	1,056		0		0		0		1,056
Noninterest income	5,973		10,953		4,342		(576)		20,692
Noninterest expense	39,448		7,178		3,552		(576)		49,602
Income before income tax expense	23,579		3,776		790		0		28,145
Income tax expense	5,528		1,052		194		0		6,774
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,051		2,724		596		0		21,371
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net Income attributable to Tompkins Financial Corporation	$	18,020	$	2,724	$	596	$	0	$	21,340
Depreciation and amortization	$	2,652	$	44	$	36	$	0	$	2,732
Assets	7,721,022		46,807		28,761		(16,649)		7,779,941
Goodwill	64,655		19,866		8,081		0		92,602
Other intangibles, net	1,137		1,742		53		0		2,932
Net loans and leases	5,163,664		0		0		0		5,163,664
Deposits	6,954,839		0		0		(18,113)		6,936,726
Total Equity	511,298		35,625		26,036		0		572,959

Nine Months Ended September 30, 2023
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	216,573	$	3	$	0	$	(3)	$	216,573
Interest expense	59,421		0		0		(3)		59,418
Net interest income	157,152		3		0		0		157,155
Provision for credit loss expense	2,578		0		0		0		2,578
Noninterest income	(50,687)		29,963		13,771		(1,656)		(8,609)
Noninterest expense	120,882		21,526		11,240		(1,656)		151,992
(Loss) Income before income tax expense	(16,995)		8,440		2,531		0		(6,024)
Income tax (benefit) expense	(3,565)		2,323		623		0		(619)
Net (Loss) Income attributable to noncontrolling interests and Tompkins Financial Corporation	(13,430)		6,117		1,908		0		(5,405)
Less: Net income attributable to noncontrolling interests	93		0		0		0		93
Net (Loss) Income attributable to Tompkins Financial Corporation	$	(13,523)	$	6,117	$	1,908	$	0	$	(5,498)
Depreciation and amortization	$	7,942	$	133	$	133	$	0	$	8,208

Nine Months Ended September 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	183,798	$	4	$	0	$	(3)	$	183,799
Interest expense	10,815		0		0		(3)		10,812
Net interest income	172,983		4		0		0		172,987
Provision for credit loss expense	1,392		0		0		0		1,392
Noninterest income	18,495		28,959		13,874		(1,707)		59,621
Noninterest expense	116,031		20,492		10,745		(1,707)		145,561
Income before income tax expense	74,055		8,471		3,129		0		85,655
Income tax expense	16,948		2,361		770		0		20,079
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	57,107		6,110		2,359		0		65,576
Less: Net income attributable to noncontrolling interests	94		0		0		0		94
Net Income attributable to Tompkins Financial Corporation	$	57,013	$	6,110	$	2,359	$	0	$	65,482
Depreciation and amortization	$	7,745	$	132	$	100	$	0	$	7,977