Segment and Related Information

3 Months Ended

Mar. 31, 2016

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 thirteen banking offices located in Ithaca, NY and surrounding communities; The Bank of Castile (DBA Tompkins Bank of Castile), a commercial bank with seventeen 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 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. 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.

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 2015 Annual Report on Form 10-K.

As of and for the three months ended March 31, 2016
(in thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	49,309	$	0	$	0	$	0		$	49,309
Interest expense		5,271		0		0		0			5,271
Net interest income		44,038		0		0		0			44,038
Provision for loan and lease losses		855		0		0		0			855
Noninterest income		6,272		7,599		3,910		(278	)		17,503
Noninterest expense		30,374		6,339		3,071		(278	)		39,506
Income before income tax expense		19,081		1,260		839		0			21,180
Income tax expense		6,194		502		271		0			6,967
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation		12,887		758		568		0			14,213
Less: Net income attributable to noncontrolling interests		33		0		0		0			33
Net Income attributable to Tompkins Financial Corporation	$	12,854	$	758	$	568	$	0		$	14,180
Depreciation and amortization	$	1,575	$	91	$	19	$	0		$	1,685
Assets		5,719,963		39,825		14,088		(8,905	)		5,764,971
Goodwill		64,370		20,036		8,211		0			92,617
Other intangibles, net		7,472		5,344		417		0			13,233
Net loans and leases		3,788,383		0		0		0			3,788,383
Deposits		4,563,951		0		0		(8,723	)		4,555,228
Total Equity		497,519		30,757		11,617		0			539,893

As of and for the three months ended March 31, 2015
(in thousands)	Banking		Insurance		Wealth Management		Intercompany			Consolidated
Interest income	$	46,192	$	1	$	35	$	0		$	46,228
Interest expense		5,000		0		0		0			5,000
Net interest income		41,192		1		35		0			41,228
Provision for loan and lease losses		209		0		0		0			209
Noninterest income		6,390		7,406		4,127		(277	)		17,646
Noninterest expense		30,950		6,015		3,004		(277	)		39,692
Income before income tax expense		16,423		1,392		1,158		0			18,973
Income tax expense		5,312		554		394		0			6,260
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation		11,111		838		764		0			12,713
Less: Net income attributable to noncontrolling interests		33		0		0		0			33
Net Income attributable to Tompkins Financial Corporation	$	11,078	$	838	$	764	$	0		$	12,680
Depreciation and amortization	$	1,444	$	92	$	32	$	0		$	1,568
Assets		5,315,921		36,283		12,402		(7,073	)		5,357,533
Goodwill		64,500		19,662		8,081		0			92,243
Other intangibles, net		8,929		4,680		501		0			14,110
Net loans and leases		3,398,072		0		0		0			3,398,072
Deposits		4,289,693		0		0		(6,927	)		4,282,766
Total Equity		468,128		26,763		9,405		0			504,296