Tompkins of New York Plans $30 Million Stock Sale

Tompkins Financial in Ithaca, N.Y., is planning to raise $30 million in a secondary stock offering and may use the proceeds to redeem securities issued to VIST Financial through the Treasury Department's Troubled Asset Relief Program

The $3.4 billion-asset Tompkins said in January that it is buying VIST of Wyomissing, Pa., for about $86 million. The $1.4 billion-asset VIST received $25 million from the Treasury program in late 2008.

In a news release Tuesday, Tompkins said it will pursue a secondary offering as part of a shelf registration and that the proceeds would be used for general working capital, which could include the Tarp repayment.

The company said that the timing and the price of the offering are subject to market conditions. At its current share price of $41.62, Tompkins would need to issue just under 721,000 shares to raise $30 million.

The company also said that it will grant the underwriters the option of to purchase an additional 15% of the shares to cover over-allotments. Macquarie Capital and Keefe, Bruyette & Woods will co-manage the stock sale.