Despite the tumultuous economy, “2011 was the best year we”™ve recorded in our bank”™s 175-year history,” said Stephen Romaine, president and chief financial officer of Tompkins Financial Corp., based in Ithaca. The former Mahopac National Bank president now oversees its network of banks, financial advisers and insurance agencies.
Tompkins is expecting to acquire VIST Financial Corp. in southeast Pennsylvania this year, a merger in line with the bank”™s plan to expand carefully.
“We are not looking merely to expand for the sake of expansion. The move into Philadelphia was well thought out. It has great demographics and is equidistant with our Mahopac Bank”™s branch offices,” Romaine said.
“We”™ve had that region on our radar for several years. Tompkins is very conservative in its investments ”“ we have customers and shareholders we have a responsibility to. This move made sense for us. It is in an attractive market and in a great area for growth, similar to the Hudson Valley.”
Under the terms of the merger agreement, the VIST branch Tompkins Financial is looking to acquire, would operate as a subsidiary of Tompkins Financial with a separate banking charter, local investment team and board of directors. Robert Davis would continue as president and CEO of VIST bank.
The acquisition would add $1 billion to Tompkins Financial”™s current $3.8 million portfolio and 300 employees.
“We”™ve gotten to the point where we are big enough to bring a broad array of products to our customers,” said Romaine, “but small enough in local markets to continue banking the way you are supposed to do it ”“ keeping the model of personal contact and access for our customers alive and well.”
While Tompkins banks ”“ Mahopac National Bank, The Bank of Castile and Tompkins Trust Co. ”“ have had Internet banking for nearly 20 years, it has grown exponentially in popularity over the past decade. The advent of Internet banking has found many of its customers doing business with its branch online, transferring funds, paying bills or receiving electronic statements. “What differentiates our service,” said Romaine, “is that we ensure our banks and our clients are protected. Hackers have a hard time getting into the bank”™s computers but can easily hack into a customer”™s. We”™ve given our clients a website that monitors the use of their banking site to best determine that the person who owns the account is the one accessing it.
“Keystroke loggers watch every move you make,” he said. “Our software distinguishes whether it is the customer logging in their password or someone else. The ”˜bad guys”™ aren”™t trying to hack into the bank ”“ they are trying to get into personal accounts.”
Internet banking is and will continue to change the face of traditional banking, he said. “Mobile banking technology is clearly the next generation of widespread financial services. Although some of the large banks have it today, adoption rates have not been extraordinarily high ”“ yet.”
With fewer checks being written and more online bill paying, seeing a line of customers queued up on the teller”™s line is becoming a rarity. “Once a customer sets up vendors and pays bills online, they never have to lick a stamp, they just put a dollar amount in,” Romaine said. “Debit cards have also had a huge impact on the way banks do business and we offer a rewards program for our customers that use theirs.”
As a result, Romaine said consumers will see an eventual shift in the way local bank branch conducts business and adapt to the physical changes it needs to accommodate those transactions. “There will be more of a focus on having business banking managers in private offices to help customers with their needs ”“ whether it is to manage assets or secure a loan, where customers want to sit down and talk face-to-face with a banker.”
While the Dodd-Frank Wall Street Reform and Consumer Protection Act was created to monitor banks with more than $10 billion in assets, the majority of its regulations apply to all banks, Romaine said.
“We”™ve added staff to handle the additional requirements; and it is a time-consuming process. I do hope that Congress modifies it so that it will not be as redundant. Bank regulations can punish the masses for the sins of a few ”“and in the end all it does is raise costs, which will be borne by the consumers and shareholders ”“ they are both an unfair population to have to pick up the expense.”
Romaine has led Tompkins Financial as its president and chief executive officer since 2007. The bank has shown six years of earnings”™ growth under his tenure.
“For the past 39 years, we”™ve shown positive growth in each year,” said Romaine, “I”™m happy to have contributed to our ongoing success.”
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