Segment and Related Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment and Related Information

13. 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 Agencies, Inc.”) 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 four banking subsidiaries: Tompkins Trust Company, a commercial bank with fifteen banking offices operated in Ithaca, NY and surrounding communities, The Bank of Castile, a commercial bank with sixteen banking offices conducting operations in the towns situated in and around the areas commonly known as the Letchworth State Park area and the Genesee Valley region of New York State, Mahopac Bank, a commercial bank operating fifteen full-service banking offices and one limited service office in the counties north of New York City, and VIST Bank, a banking organization containing 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, assisting them with their medical, group life insurance and group disability insurance. Through the 2012 acquisition of VIST Financial, Tompkins Insurance expanded its operations with the addition of VIST Insurance, a full service insurance agency offering a similar array of insurance products as Tompkins Insurance in southeastern Pennsylvania.

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 in New York.

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 2013 Annual Report on Form 10-K.

As of and for the three months ended March 31, 2014
(in thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	45,333	$	2	$	32	$	(2	)	$	45,365
Interest expense		5,340		0		0		(2	)		5,338
Net interest income		39,993		2		32		0			40,027
Provision for loan and lease losses		743		0		0		0			743
Noninterest income		6,314		7,247		4,229		(356	)		17,434
Noninterest expense		29,846		5,728		2,992		(356	)		38,210
Income before income tax expense		15,718		1,521		1,269		0			18,508
Income tax expense		4,850		625		431		0			5,906
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation		10,868		896		838		0			12,602
Less:  Net income attributable to noncontrolling interests		33		0		0		0			33
Net Income attributable to Tompkins Financial Corporation	$	10,835	$	896	$	838	$	0		$	12,569
Depreciation and amortization	$	1,295	$	50	$	37	$	0		$	1,382
Assets		5,001,219		34,543		13,712		(7,674	)		5,041,800
Goodwill		64,500		19,665		8,081		0			92,246
Other intangibles, net		10,341		5,080		583		0			16,004
Net loans and leases		3,176,198		0		0		0			3,176,198
Deposits		4,112,666		0		0		(7,496	)		4,105,170
Total Equity		435,130		26,779		11,913		0			473,822

As of and for the three months ended March 31, 2013
(in thousands)	Banking		Insurance		Wealth Management		Intercompany & Merger			Consolidated
Interest income	$	44,401	$	2	$	55	$	(1	)	$	44,457
Interest expense		6,252		0		0		(1	)		6,251
Net interest income		38,149		2		55		0			38,206
Provision for loan and lease losses		1,038		0		0		0			1,038
Noninterest income		6,636		7,066		4,190		(502	)		17,390
Noninterest expense1		29,406		5,566		3,050		(502	)		37,520
Income before income tax expense		14,341		1,502		1,195		0			17,038
Income tax expense		4,466		625		404		0			5,495
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation		9,875		877		791		0			11,543
Less:  Net income attributable to noncontrolling interests		33		0		0		0			33
Net Income attributable to Tompkins Financial Corporation	$	9,842	$	877	$	791	$	0		$	11,510
Depreciation and amortization	$	1,354	$	55	$	36	$	0		$	1,445
Assets		4,948,301		34,427		11,981		(7,429	)		4,987,280
Goodwill		64,665		19,559		8,081		0			92,305
Other intangibles, net		11,884		5,476		649		0			18,009
Net loans and leases		2,969,134		0		0		0			2,969,134
Deposits		4,079,623		0		0		(7,271	)		4,072,352
Total Equity		412,256		25,150		9,406		0			446,812