Tompkins Insurance Agencies Inc., having seen good revenue growth from its first agency acquisitions in western New York, says it wants to build on that success with its latest agency deal, for Banfield & Associates Inc. in Ithaca.
"We're like most financial holding companies," said James J. Byrnes, the chairman and chief executive officer of the parent Tompkins Trustco Inc. "We're looking for fee income, and … insurance … has become a great source."
Tompkins entered the business by acquisition, Mr. Byrnes said, and the Banfield deal was the insurance unit's third. Tompkins, which is based in Ithaca, got into insurance in 2001 when it bought the Austin Hardie Wise Agency Inc. in Attica, N.Y., and Ernest Townsend & Son Inc. in LeRoy, N.Y.
When Tompkins Insurance bought the two agencies, they had revenues of about $2.5 million combined.
Mr. Byrnes declined to disclose revenue expectations or long-term sales goals for the Banfield & Associates operation. However, he said, his company's insurance unit had $5 million of revenue for the first nine months of 2004.
The Banfield purchase closed Dec. 31 with the agency's merger into Tompkins Insurance.
Banfield was a full-service insurance agency owned and operated by W. David Banfield, who has become a senior vice president and manager at Tompkins Insurance.
"Anytime we buy anything we look for customer service and similar business ethics," Mr. Byrnes said. Also, Tompkins Insurance specializes in property and casualty business lines, he said, and it looks for agencies with similar products and services, with a leaning toward commercial customers.
Tompkins Insurance sells personal lines, commercial lines, long-term care, and annuities, among other financial services and insurance products.
Asked about dealmaking in 2005, Mr. Byrnes said Tompkins Insurance has no agency purchase on the burner but that "we do consider offers from time to time if they are a very good fit."
The insurance subsidiary plans to continue cross-selling efforts with traditional banking products, he said, though he declined to discuss sales goals.
Insurance remains an attractive business line for Tompkins Trustco because "of the fit with our customers' needs," Mr. Byrnes said. "We do a lot of small-business and commercial lending, and we are looking, as most financial institutions are, to provide more services. And it is a great cross-selling opportunity."
