Tompkins Financial (TMP)

Risks

• Risks Related to the COVID-19 Pandemic.
• The ongoing COVID-19 pandemic is increasing cyber-security risks.
• Risks Related to the Company’s Business
• The Company has consolidated its bank subsidiaries, which may result in significant implementation costs in 2022.
• The Company is subject to increased business risk because the Company has a significant concentration of commercial real estate and commercial business loans, repayment of which is often dependent on the cash flows of the borrower.
• The Company’s agricultural loans are often dependent upon the health of the agricultural industry in the location of the borrower, and the ability of the borrower to repay may be affected by many factors outside of the borrower’s control.
• Declines in asset values may result in impairment charges and may adversely affect the value of the Company’s results of operations, financial condition and cash flows.
• A decline in the value of our goodwill and other intangible assets could adversely affect our financial condition and results of operations.
• The Company may be adversely affected by the soundness of other financial institutions.
• The Company relies on cash dividends from its subsidiaries to fund its operations, and payment of those dividends could be discontinued at any time.
• The Company’s business may be adversely affected by general economic conditions in local and national markets, the possibility of the economy’s return to recessionary conditions and the possibility of further turmoil or volatility in the financial markets.
• Our business is concentrated in and largely dependent upon the continued growth and welfare of the general geographic markets in which we operate.
• Our insurance agency subsidiary’s commission revenues are based on premiums set by insurers and any decreases in these premium rates could adversely affect our operations and revenues.
• Our funding sources may prove insufficient to replace deposits and support our future growth.
• The Company is or may become involved in lawsuits, legal proceedings, information-gathering requests, and investigations by governmental agencies or other parties that may lead to adverse consequences.
• Climate change could have a material negative impact on the Company and clients.
• The Company operates in a highly regulated environment and may be adversely impacted by current or future laws and regulations due to increased compliance costs, potential fines for noncompliance, and restrictions on our ability to offer products or buy or sell businesses.
• The Company could be subject to environmental risks and associated costs on real estate properties owned by the Company, real estate properties that collateralize the Company’s loans or real estate properties that the Company obtains title to.
• The Company may be exposed to regulatory sanctions or liability if we do not timely detect and report money laundering or other illegal activities.
• The Company may be adversely affected by fraud.
• Our business requires the collection and retention of large volumes of sensitive data, which is subject to extensive regulation and oversight and exposes our business to additional risks.
• A breach of information or other technological security, including as a result of cyber-attacks, could have a material adverse effect on our business, financial condition and results of operations.
• The Company's operations may be adversely affected if its external vendors do not perform as expected or if its access to third-party services is interrupted.
• Our success depends on our ability to offer our customers an evolving suite of products and services, and we may not be able to effectively manage the risks inherent in the development of financial products and services.