Tompkins Financial Corporation (TMP): Business Model Canvas [11-2024 Updated]
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Tompkins Financial Corporation (TMP) Bundle
In the competitive landscape of financial services, Tompkins Financial Corporation (TMP) stands out with its robust Business Model Canvas that highlights its strategic approach to delivering value. From
- collaborations with local businesses
- to a diverse portfolio of banking, insurance, and wealth management services
Tompkins Financial Corporation (TMP) - Business Model: Key Partnerships
Collaborations with local businesses and organizations
Tompkins Financial Corporation actively collaborates with local businesses and organizations to strengthen community ties and enhance its service offerings. As of September 30, 2024, total deposits were reported at $6.6 billion, reflecting a $178.0 million increase, or 2.8%, from December 31, 2023. These partnerships often facilitate access to financial products and services tailored to local needs, fostering economic growth within the community.
Partnerships with insurance and wealth management firms
The company has established strategic partnerships with various insurance and wealth management firms to expand its service portfolio. Wealth management fees reached $4.9 million in the third quarter of 2024, marking a 13.4% increase from the previous year. The fair value of assets managed by Tompkins was $3.2 billion as of September 30, 2024, an increase of $281.0 million, or 9.6%, from the previous year.
| Partnership Type | Revenue (Q3 2024) | Growth from Q3 2023 | Assets Under Management (AUM) | Growth in AUM |
|---|---|---|---|---|
| Wealth Management Firms | $4.9 million | 13.4% | $3.2 billion | 9.6% |
| Insurance Firms | $11.3 million | -1.0% | N/A | N/A |
Strategic acquisitions of smaller banks and financial services
Tompkins Financial Corporation has pursued strategic acquisitions to bolster its market position. The banking segment reported net income of $14.8 million for the third quarter of 2024, a significant recovery compared to a net loss of $37.1 million in the same quarter of 2023. This turnaround is indicative of the value added through strategic acquisitions and successful integration of smaller financial institutions into its operations.
Total loans increased by $275.3 million, or 4.9%, as of September 30, 2024. The company’s strategy of acquiring smaller banks has contributed to this growth, enhancing its ability to serve a broader customer base and improve overall financial performance.
| Acquisition Type | Net Income (Q3 2024) | Previous Year Net Loss | Total Loans | Growth in Loans |
|---|---|---|---|---|
| Smaller Banks | $14.8 million | -$37.1 million | $5.9 billion | 4.9% |
Tompkins Financial Corporation (TMP) - Business Model: Key Activities
Offering banking, insurance, and wealth management services
Tompkins Financial Corporation operates through three primary segments: banking, insurance, and wealth management. As of September 30, 2024, the banking segment generated a net income of $14.8 million, a significant recovery from a net loss of $37.1 million in the same quarter of 2023. For the first nine months of 2024, net income from banking reached $41.3 million, up from a loss of $5.5 million in 2023.
The insurance segment reported a net income of $3.1 million for the third quarter of 2024, down 4.4% from the previous year. However, the nine-month performance showed an increase, with net income up 14.7% to $7.0 million. Wealth management services contributed $755,000 in net income for the third quarter, marking a 34.3% increase year-over-year, with total assets under management reaching $3.2 billion.
| Segment | Q3 2024 Net Income | Q3 2023 Net Income | 9M 2024 Net Income | 9M 2023 Net Income |
|---|---|---|---|---|
| Banking | $14.8 million | ($37.1 million) | $41.3 million | ($5.5 million) |
| Insurance | $3.1 million | $3.2 million | $7.0 million | $6.1 million |
| Wealth Management | $755,000 | $562,000 | $2.8 million | $1.9 million |
Risk management and compliance with financial regulations
Tompkins Financial Corporation emphasizes risk management as a critical activity to ensure compliance with financial regulations. As of September 30, 2024, total assets were reported at $8.0 billion, reflecting a growth of $186.7 million or 2.4% from December 31, 2023. The capital ratios for the company’s subsidiary bank exceeded the minimum required capital ratios for well-capitalized institutions.
As part of its risk management strategy, the company has provisions for credit losses totaling $5.2 million for the nine months ended September 30, 2024, compared to $2.6 million for the same period in 2023. The increase in credit loss provisions is attributed to growth in loan portfolios, which totaled $5.9 billion as of September 30, 2024, representing an increase of $275.3 million or 4.9% from December 31, 2023.
| Metric | Value as of 9/30/2024 | Change from 12/31/2023 |
|---|---|---|
| Total Assets | $8.0 billion | +2.4% |
| Total Loans | $5.9 billion | +4.9% |
| Provisions for Credit Losses | $5.2 million | +100% |
Community engagement and support initiatives
Community engagement plays a vital role in Tompkins Financial Corporation’s operations. The company is actively involved in supporting local initiatives and programs that foster community development. In 2024, it allocated approximately $1.2 million to community development projects and initiatives aimed at enhancing local economic growth.
Furthermore, Tompkins Financial Corporation's commitment to social responsibility is reflected in its employee volunteer programs, which encouraged over 5,000 hours of community service in 2024. The company’s efforts in community engagement not only enhance its brand reputation but also contribute to customer loyalty and local economic stability.
| Community Initiative | Investment in 2024 | Volunteer Hours |
|---|---|---|
| Community Development Projects | $1.2 million | 5,000 hours |
Tompkins Financial Corporation (TMP) - Business Model: Key Resources
Network of 55 banking offices in New York and Pennsylvania
As of September 30, 2024, Tompkins Financial Corporation operates a network of 55 banking offices strategically located across New York and Pennsylvania. This extensive presence enables the company to effectively serve a diverse customer base and capitalize on local market opportunities.
Skilled workforce in banking and financial services
Tompkins Financial employs a skilled workforce that is essential for delivering high-quality banking and financial services. As of September 30, 2024, the company reported a total noninterest expense of $49.9 million for the third quarter, with 64.0% of this expense attributed to compensation and benefits, demonstrating the company's investment in human capital.
Diverse portfolio of loans and investments
The company's loan portfolio was valued at $5.9 billion as of September 30, 2024, reflecting an increase of $275.3 million, or 4.9%, from December 31, 2023. This growth is primarily driven by increases in commercial real estate and industrial loans. The composition of the loan portfolio includes:
| Loan Type | Amount (in billions) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate Loans | $3.3 | 56.3% |
| Commercial and Industrial Loans | $0.89 | 15.1% |
| Residential Real Estate Loans | $1.6 | 26.7% |
| Agriculturally-Related Loans | $0.30 | 5.1% |
As of September 30, 2024, the fair value of assets managed by Tompkins in its wealth management segment was reported at $3.2 billion, a 9.6% increase from the previous year.
Tompkins Financial Corporation (TMP) - Business Model: Value Propositions
Comprehensive financial services tailored to community needs
Tompkins Financial Corporation offers a wide array of financial services that cater specifically to the needs of its local communities. The company operates primarily through three segments: banking, insurance, and wealth management. As of September 30, 2024, total assets reached $8.0 billion, with total loans amounting to $5.9 billion, reflecting a 4.9% increase from December 31, 2023. The banking segment reported net income of $14.8 million for the third quarter of 2024, a significant recovery from a net loss of $37.1 million in the same period of 2023. This demonstrates the corporation's commitment to providing relevant financial solutions to its customers.
| Segment | Net Income (3Q 2024) | Net Income (3Q 2023) | Change (%) | Total Loans (as of 9/30/2024) |
|---|---|---|---|---|
| Banking | $14.8 million | $(37.1) million | 139.9% | $5.9 billion |
| Insurance | $3.1 million | $3.2 million | (4.4%) | N/A |
| Wealth Management | $0.755 million | $0.562 million | 34.3% | N/A |
Commitment to responsible and sustainable growth
Tompkins Financial is dedicated to responsible and sustainable growth, focusing on community investment and environmental stewardship. As of September 30, 2024, the company’s total equity stood at $675.5 million, reflecting a strong capital base. The firm emphasizes sustainable practices in its operations, including the management of its loan portfolio, which includes agriculturally-related loans totaling $299.5 million, representing 5.1% of total loans. This commitment is evident in their growth in noninterest income, which rose to $23.4 million for the third quarter of 2024, reflecting a 156.2% increase year-over-year.
| Financial Metric | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Equity | $675.5 million | $638.9 million | 5.3% |
| Total Assets | $8.0 billion | $7.8 billion | 2.4% |
| Total Loans | $5.9 billion | $5.6 billion | 4.9% |
Strong local presence with personalized customer service
With a robust local presence in New York and Pennsylvania, Tompkins Financial Corporation emphasizes personalized customer service across its branches. The company’s strategy includes building long-term relationships with customers through tailored financial solutions. As of September 30, 2024, total deposits at Tompkins Financial were $6.6 billion, reflecting a 2.8% increase from December 31, 2023. This growth in deposits signifies the trust and loyalty of the customer base, driven by the bank's commitment to meeting the unique needs of its communities.
| Deposit Type | Amount (as of 9/30/2024) | Change (%) from 12/31/2023 |
|---|---|---|
| Total Deposits | $6.6 billion | 2.8% |
| Core Deposits | $5.3 billion | 3.0% |
| Time Deposits | $1.0 billion | 4.4% |
Tompkins Financial Corporation (TMP) - Business Model: Customer Relationships
Focus on building long-term relationships with clients
Tompkins Financial Corporation prioritizes long-term client relationships, which is reflected in its total deposits of $6.6 billion as of September 30, 2024, an increase of $178.0 million, or 2.8%, from December 31, 2023. Core deposits, representing 81.3% of total deposits, increased by $155.3 million, or 3.0%, indicating a strong retention strategy.
Providing financial education and support
Tompkins Financial emphasizes financial education through its wealth management services, which generated fees of $4.9 million in the third quarter of 2024, up 13.4% from the same period in 2023. The fair value of assets managed by Tompkins reached $3.2 billion, an increase of $281.0 million, or 9.6%, from September 30, 2023. This growth reflects the company's commitment to enhancing customer financial literacy and support.
Dedicated customer service teams for tailored assistance
Tompkins Financial maintains dedicated customer service teams, which are crucial for personalized assistance. The company reported noninterest expenses of $149.7 million for the first nine months of 2024, with compensation and benefits accounting for 64.0% of total noninterest expenses. This focus on human capital underpins the company's strategy to provide tailored solutions to its clients, resulting in improved customer satisfaction and loyalty.
| Customer Relationship Aspect | Financial Metric | Value | Year |
|---|---|---|---|
| Total Deposits | Increase | $178.0 million | 2024 |
| Core Deposits Percentage | Percentage of Total Deposits | 81.3% | 2024 |
| Wealth Management Fees | Quarterly Revenue | $4.9 million | Q3 2024 |
| Assets Under Management | Fair Value | $3.2 billion | Q3 2024 |
| Noninterest Expenses | Total | $149.7 million | 9 Months 2024 |
| Compensation and Benefits | Percentage of Noninterest Expenses | 64.0% | 9 Months 2024 |
Tompkins Financial Corporation (TMP) - Business Model: Channels
Physical branches for direct customer interaction
As of September 30, 2024, Tompkins Financial Corporation operates 30 physical branches across New York and Pennsylvania, providing direct customer interaction and personalized banking services. These branches serve as critical touchpoints for customers, allowing them to access a range of banking products, including loans, deposits, and financial advice.
Total deposits at Tompkins Financial Corporation were reported at $6.6 billion, reflecting a year-to-date increase of $178 million, or 2.8%, from December 31, 2023. Core deposits, which are vital for funding, represented approximately 81.3% of total deposits as of September 30, 2024.
Online banking platforms for convenient access
Tompkins Financial Corporation offers a robust online banking platform that allows customers to manage their accounts, pay bills, and transfer funds conveniently. The digital platform is designed to enhance customer experience by providing 24/7 access to banking services. The company reported that online banking transactions have increased significantly, contributing to a rise in customer engagement and satisfaction.
As of September 30, 2024, the total net interest income for the banking segment stood at $154.8 million for the first nine months of 2024, reflecting a slight decrease of 1.5% compared to the same period in 2023, primarily due to rising interest rates impacting funding costs.
Mobile apps for on-the-go financial management
Tompkins Financial Corporation's mobile banking app provides customers with a convenient way to manage their finances on the go. The app includes features such as mobile check deposit, balance inquiries, and transaction history, catering to the increasing demand for mobile banking solutions. The adoption of mobile banking has been a key component of Tompkins' strategy to enhance customer accessibility and service delivery.
As of September 30, 2024, the company reported a 66.4% increase in cash and cash equivalents, totaling $132.3 million. This increase supports the liquidity needed for both online and mobile banking operations, ensuring that customers can access their funds whenever required.
| Channel | Description | Key Metrics |
|---|---|---|
| Physical Branches | Direct customer interaction and personalized service in 30 locations. | Total Deposits: $6.6 billion (up $178 million, 2.8% YoY) |
| Online Banking | 24/7 access to account management and transactions. | Net Interest Income: $154.8 million (down 1.5% YoY) |
| Mobile App | On-the-go financial management with mobile check deposit and balance inquiries. | Cash and Cash Equivalents: $132.3 million (up 66.4% YoY) |
Tompkins Financial Corporation (TMP) - Business Model: Customer Segments
Individual consumers seeking banking and investment services
Tompkins Financial Corporation serves individual consumers through a variety of banking and investment services. As of September 30, 2024, total loans and leases to individual consumers were approximately $1.6 billion, representing 26.7% of total loans and leases. Additionally, the wealth management segment reported wealth management fees of $4.9 million in Q3 2024, reflecting a 13.4% increase compared to the same quarter in 2023.
| Metric | Value |
|---|---|
| Total Loans to Individual Consumers | $1.6 billion |
| Wealth Management Fees (Q3 2024) | $4.9 million |
| Percentage of Total Loans | 26.7% |
Small to medium-sized businesses requiring financial solutions
Tompkins Financial Corporation also targets small to medium-sized businesses (SMBs) by providing tailored financial solutions. As of September 30, 2024, commercial real estate loans were $3.3 billion, and commercial and industrial loans totaled $890.2 million, collectively representing 71.4% of total loans. The banking segment reported a net income of $14.8 million in Q3 2024, a substantial increase from the previous year, indicating strong performance in serving this customer segment.
| Metric | Value |
|---|---|
| Commercial Real Estate Loans | $3.3 billion |
| Commercial and Industrial Loans | $890.2 million |
| Net Income from Banking Segment (Q3 2024) | $14.8 million |
Agricultural clients needing specialized loans and services
Tompkins Financial Corporation has a dedicated focus on agricultural clients, providing specialized loans and services. As of September 30, 2024, agriculturally related loans amounted to $299.5 million, accounting for 5.1% of total loans and leases. The bank employs a comprehensive approach to lending in this sector, considering cash flows, collateral, and government-related guarantees.
| Metric | Value |
|---|---|
| Agriculturally Related Loans | $299.5 million |
| Percentage of Total Loans | 5.1% |
Tompkins Financial Corporation (TMP) - Business Model: Cost Structure
Employee salaries and benefits as major expense categories
For the three months ended September 30, 2024, employee compensation and benefits accounted for approximately 64.0% of total noninterest expenses, which amounted to $49.9 million. This is consistent with the prior year, where employee-related costs represented 63.1% of noninterest expenses for the same period in 2023. Total salaries, wages, and benefits during this quarter were reported at $31.9 million, reflecting an increase of $810,000, or 2.6%, compared to the same quarter in 2023.
Interest expenses on deposits and borrowings
Interest expenses for the three months ended September 30, 2024, totaled $35.9 million, marking an increase of $11.5 million, or 47.0%, compared to the same period in 2023. The average cost of interest-bearing deposits rose to 2.35% during this quarter, a rise of 61 basis points year-over-year. Average interest-bearing deposits increased by $84.6 million, or 1.9%, while the average other borrowings surged by $305.6 million, or 75.7%.
Operational costs related to branch maintenance and technology
Operational costs associated with branch maintenance and technology were reported as part of the overall noninterest expenses, which totaled $149.7 million for the first nine months of 2024, a decrease of $2.3 million, or 1.5%, from the same period in 2023. Specific operational expenses included maintenance costs for branches and technology investments, although detailed figures were not disclosed. However, it was noted that decreases in expenses such as premises and technology were offset by increases in FDIC insurance costs, which rose by $1.4 million, or 49.8%, compared to the previous year.
| Cost Category | Q3 2024 Amount ($) | Q3 2023 Amount ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Employee Salaries and Benefits | 31,900,000 | 31,090,000 | 810,000 | 2.6% |
| Interest Expenses | 35,900,000 | 24,400,000 | 11,500,000 | 47.0% |
| Total Noninterest Expenses | 149,700,000 | 152,000,000 | -2,300,000 | -1.5% |
Tompkins Financial Corporation (TMP) - Business Model: Revenue Streams
Net interest income from loans and deposits
Net interest income is the primary revenue source for Tompkins Financial Corporation. For the third quarter of 2024, net interest income was reported at $53.2 million, reflecting a 4.3% increase from $51.0 million in the same quarter of 2023. For the nine months ending September 30, 2024, net interest income totaled $154.8 million, down 1.5% from $157.2 million in the same period of the previous year.
The average yield on interest-earning assets for the third quarter of 2024 was 4.66%, compared to 4.56% for the second quarter of 2024. The average cost of interest-bearing liabilities increased to 2.71% from 2.64% in the previous quarter, leading to a net interest margin of 2.79% for Q3 2024, up from 2.75% in Q3 2023.
Noninterest income from insurance commissions and fees
Noninterest income is another significant revenue stream, primarily derived from insurance commissions and fees. For the third quarter of 2024, noninterest income amounted to $23.4 million, showing a substantial increase of 156.2% compared to $(8.6 million) in Q3 2023. Year-to-date, noninterest income reached $67.3 million, an increase of 881.7% from $(8.6 million) in the same period last year.
Insurance commissions and fees specifically were $11.3 million for Q3 2024, down 1.0% from the previous year. However, for the nine months ended September 30, 2024, insurance commissions and fees increased by 3.6% to $31.7 million compared to $30.6 million in the prior period.
Wealth management fees for investment and advisory services
Wealth management services contribute a growing portion of revenue. In Q3 2024, wealth management fees totaled $4.9 million, a 13.4% increase from $4.3 million in Q3 2023. For the first nine months of 2024, these fees were $15.0 million, rising 8.7% from $13.8 million in the same period of 2023.
The fair value of assets managed or in custody by Tompkins Financial was $3.2 billion as of September 30, 2024, up 9.6% from $2.9 billion a year prior.
| Revenue Stream | Q3 2024 ($ million) | Q3 2023 ($ million) | Change (%) | 9M 2024 ($ million) | 9M 2023 ($ million) | Change (%) |
|---|---|---|---|---|---|---|
| Net Interest Income | 53.2 | 51.0 | 4.3 | 154.8 | 157.2 | -1.5 |
| Noninterest Income (Insurance Commissions) | 11.3 | 11.4 | -1.0 | 31.7 | 30.6 | 3.6 |
| Wealth Management Fees | 4.9 | 4.3 | 13.4 | 15.0 | 13.8 | 8.7 |
Updated on 16 Nov 2024
Resources:
- Tompkins Financial Corporation (TMP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tompkins Financial Corporation (TMP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tompkins Financial Corporation (TMP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.