Tompkins Financial Corporation Reports Second Quarter Earnings

ITHACA, N.Y.–(BUSINESS WIRE)–Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported net income of $19.4 million for the second quarter of 2019, compared to the $22.1 million reported for the same period in 2018. Year-to-date net income was $40.4 million, a decrease of $2.1 million, or 4.9% from the same period in 2018.

Diluted earnings per share were $1.27 for the second quarter of 2019, compared to $1.43 reported in the second quarter of 2018. For the year-to-date period ended June 30, 2019, diluted earnings per share were $2.63, down 4.7% over the same period in 2018.

President and CEO, Stephen S. Romaine said “Though overall performance remains very good, we did see a decline in earnings for the quarter and year-to-date periods. The decline from recent prior periods was largely driven by the challenging interest rate environment that has resulted in funding costs increasing at a faster pace than asset yields. We are fortunate that our business model includes meaningful fee income contributions from business lines that are less impacted by the interest rate environment. Additionally, we have a number of continuous improvement initiatives underway that we expect will have a positive impact on performance later in 2019 and in future years.”

SELECTED HIGHLIGHTS FOR THE SECOND QUARTER AND YEAR-TO-DATE PERIODS:

  • Total loans of $4.9 billion were up 1.4% over the same period in 2018
  • Total deposits of $5.0 billion reflect an increase of 4.1% over the same period last year
  • Total nonperforming loans were down $2.3 million or 8.8% compared to the same period last year, and down $2.8 million or 10.5% from December 31, 2018
  • Tangible book value per share is up $4.75 or 14.8% from the second quarter of 2018 and reflects the sixth consecutive quarterly increase

NET INTEREST INCOME

Net interest income was $52.3 million for the second quarter of 2019, compared to $52.7 million reported for the second quarter of 2018. For the year-to-date period, net interest income was $104.2 million, a decrease of $1.2 million or 1.1% from the same six-month period in 2018.

Net interest income benefited from growth in average loans and higher yielding earning assets. Average loans were up $78.4 million, or 1.7% in the first six months of 2019, compared to the same six month period in 2018, while asset yields were up 26 basis points compared to the first six months of 2018. Average total deposits were up $101.3 million, or 2.1% in the first six months of 2019, versus the same period in 2018. Average noninterest deposits for the first six months of 2019 were in line with the same period in 2018. The average rate paid on interest bearing deposit products in the first six months of 2019 increased 42 basis points over the same period in 2018. The net interest margin for the second quarter of 2019 was 3.34%, compared to 3.36% reported for the same period in 2018, and unchanged compared to the prior quarter end. The decline in margin is largely due to the recent increases in market interest rates that have resulted in increased funding costs.

During the quarter, the Company sold $152.1 million in lower yielding securities and used the proceeds to pay down short term borrowings. Because the transaction was executed in June, it had little impact on net interest income during the quarter, but is expected to have a positive impact on net interest income during the remainder of 2019.

NONINTEREST INCOME

Noninterest income represented 26.7% of total revenues in the first six months of 2019, compared to 27.0% in the same period in 2018. The second quarter of 2018 included a gain on sale of two properties totaling $2.9 million. The sale of these properties was related to the completion of the new Company headquarters building in the second quarter of 2018. Fee income associated with insurance, wealth management, deposit services, and card services for the second quarter of 2019 were up a combined $323,000, or 2.0% over the same period in 2018.

NONINTEREST EXPENSE

Noninterest expense was $46.1 million for the second quarter of 2019, up $1.1 million, or 2.4%, over the second quarter of 2018. For the year-to-date period, noninterest expense was $90.3 million, up $1.6 million, or 1.8%, from the same period in 2018. The increase in noninterest expense for both the second quarter and year-to-date periods included normal annual increases in salaries and wages.

INCOME TAX EXPENSE

The Company’s effective tax rate was 19.6% in the second quarter of 2019, compared to 20.7% for the same period in 2018.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2019. Nonperforming assets represented 0.39% of total assets at June 30, 2019, compared to 0.42% at December 31, 2018, and at June 30, 2018. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.60%.

Provision for loan and lease losses was $601,000 for the second quarter of 2019, compared to $1.0 million for the second quarter ended June 30, 2018. Net charge-offs for the second quarter of 2019 were $139,000 compared to $31,000 reported in the second quarter of 2018.

The Company’s allowance for originated loan and lease losses totaled $40.6 million at June 30, 2019, and represented 0.88% of total originated loans and leases at June 30, 2019, compared to 0.91% at June 30, 2018, and 0.89% for the most recent prior quarter. The total allowance represented 171.42% of total nonperforming loans and leases at June 30, 2019, compared to 163.25% at December 31, 2018, and 158.08% at June 30, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 8.50% at June 30, 2019, improved from the 8.24% reported for the most recent prior quarter ended March 31, 2019, and the 7.36% reported for June 30, 2018. During the quarter, the Company repurchased 155,093 shares at a total cost of $12.3 million.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

« Safe Harbor » Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.

 

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

(in thousands, except share and per share data)

As of

As of

ASSETS

06/30/2019

12/31/2018

 

 

 

Cash and noninterest bearing balances due from banks

$

79,032

 

$

78,524

 

Interest bearing balances due from banks

1,981

 

1,865

 

Cash and Cash Equivalents

81,013

 

80,389

 

 

 

 

Available-for-sale securities, at fair value (amortized cost of $1,190,869 at June 30, 2019 and $1,363,902 at December 31, 2018)

1,189,246

 

1,332,658

 

Held-to-maturity securities, at amortized cost (fair value of $143,548 June 30, 2019 and $139,377 at December 31, 2018)

140,561

 

140,579

 

Equity securities, at fair value (amortized cost $1,000 at June 30, 2019 and $1,000 at December 31, 2018)

912

 

887

 

Originated loans and leases, net of unearned income and deferred costs and fees

4,608,483

 

4,568,741

 

Acquired loans

247,319

 

265,198

 

Less: Allowance for loan and lease losses

40,790

 

43,410

 

Net Loans and Leases

4,815,012

 

4,790,529

 

 

 

 

Federal Home Loan Bank and other stock

40,770

 

52,262

 

Bank premises and equipment, net

96,053

 

97,202

 

Corporate owned life insurance

82,092

 

81,928

 

Goodwill

92,447

 

92,283

 

Other intangible assets, net

7,092

 

7,628

 

Accrued interest and other assets

109,192

 

82,091

 

Total Assets

$

6,654,390

 

$

6,758,436

 

LIABILITIES

 

 

Deposits:

 

 

Interest bearing:

 

 

Checking, savings and money market

2,908,888

 

2,853,190

 

Time

684,962

 

637,295

 

Noninterest bearing

1,395,047

 

1,398,474

 

Total Deposits

4,988,897

 

4,888,959

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

63,978

 

81,842

 

Other borrowings

824,562

 

1,076,075

 

Trust preferred debentures

16,949

 

16,863

 

Other liabilities

102,327

 

73,826

 

Total Liabilities

$

5,996,713

 

$

6,137,565

 

EQUITY

 

 

Tompkins Financial Corporation shareholders’ equity:

 

 

Common Stock – par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,196,629 at June 30, 2019; and 15,348,287 at December 31, 2018

1,520

 

1,535

 

Additional paid-in capital

355,284

 

366,595

 

Retained earnings

344,513

 

319,396

 

Accumulated other comprehensive loss

(40,174

)

(63,165

)

Treasury stock, at cost – 119,784 shares at June 30, 2019, and 122,227 shares at December 31, 2018

(4,942

)

(4,902

)

Total Tompkins Financial Corporation Shareholders’ Equity

656,201

 

619,459

 

 

 

 

Noncontrolling interests

1,476

 

1,412

 

Total Equity

$

657,677

 

$

620,871

 

Total Liabilities and Equity

$

6,654,390

 

$

6,758,436

 

 

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data) (Unaudited)

Three Months Ended

Six Months Ended

 

06/30/2019

06/30/2018

06/30/2019

06/30/2018

INTEREST AND DIVIDEND INCOME

 

 

 

 

Loans

$

56,740

 

$

52,757

 

$

112,064

 

$

103,651

 

Due from banks

10

 

7

 

20

 

13

 

Available-for-sale securities

7,686

 

7,729

 

15,544

 

15,373

 

Held-to-maturity securities

863

 

854

 

1,721

 

1,712

 

Federal Home Loan Bank and other stock

794

 

796

 

1,672

 

1,534

 

Total Interest and Dividend Income

66,093

 

62,143

 

131,021

 

122,283

 

INTEREST EXPENSE

 

 

 

 

Time certificates of deposits of $250,000 or more

774

 

540

 

1,360

 

525

 

Other deposits

6,816

 

3,087

 

12,827

 

5,870

 

Federal funds purchased and securities sold under agreements to repurchase

33

 

34

 

77

 

80

 

Trust preferred debentures

327

 

306

 

656

 

586

 

Other borrowings

5,825

 

5,462

 

11,869

 

9,821

 

Total Interest Expense

13,775

 

9,429

 

26,789

 

16,882

 

Net Interest Income

52,318

 

52,714

 

104,232

 

105,401

 

Less: Provision for loan and lease losses

601

 

1,045

 

1,046

 

1,612

 

Net Interest Income After Provision for Loan and Lease Losses

51,717

 

51,669

 

103,186

 

103,789

 

NONINTEREST INCOME

 

 

 

 

Insurance commissions and fees

7,752

 

7,387

 

15,797

 

14,781

 

Investment services income

3,907

 

4,022

 

7,991

 

8,268

 

Service charges on deposit accounts

2,021

 

2,080

 

4,019

 

4,212

 

Card services income

2,750

 

2,621

 

5,540

 

4,767

 

Other income

1,806

 

4,898

 

4,284

 

6,686

 

Net gain on securities transactions

284

 

150

 

296

 

274

 

Total Noninterest Income

18,520

 

21,158

 

37,927

 

38,988

 

NONINTEREST EXPENSE

 

 

 

 

Salaries and wages

22,088

 

21,377

 

43,189

 

42,375

 

Other employee benefits

5,662

 

5,183

 

11,273

 

10,559

 

Net occupancy expense of premises

3,258

 

3,170

 

6,859

 

6,816

 

Furniture and fixture expense

1,996

 

1,673

 

3,975

 

3,648

 

FDIC insurance

522

 

704

 

1,104

 

1,371

 

Amortization of intangible assets

418

 

443

 

830

 

894

 

Other operating expense

12,126

 

12,435

 

23,049

 

23,043

 

Total Noninterest Expenses

46,070

 

44,985

 

90,279

 

88,706

 

Income Before Income Tax Expense

24,167

 

27,842

 

50,834

 

54,071

 

Income Tax Expense

4,743

 

5,751

 

10,338

 

11,512

 

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

19,424

 

22,091

 

40,496

 

42,559

 

Less: Net Income Attributable to Noncontrolling Interests

32

 

32

 

64

 

64

 

Net Income Attributable to Tompkins Financial Corporation

$

19,392

 

$

22,059

 

$

40,432

 

$

42,495

 

Basic Earnings Per Share

$

1.27

 

$

1.44

 

$

2.64

 

$

2.78

 

Diluted Earnings Per Share

$

1.27

 

$

1.43

 

$

2.63

 

$

2.76

 

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

YTD Period Ended

YTD Period Ended

 

 

June 30, 2019

 

June 30, 2019

 

June 30, 2018

 

 

Average

 

 

 

Average

 

 

 

Average

 

 

 

 

Balance

 

Average

 

Balance

 

Average

 

Balance

 

Average

(Dollar amounts in thousands)

 

(QTD)

Interest

Yield/

Rate

 

(YTD)

Interest

Yield/

Rate

 

(YTD)

Interest

Yield/

Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances due from banks

$

2,131

 

$

10

1.88%

$

2,232

$

20

1.81%

$

1,922

$

14

1.47%

Securities (4)

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government securities

 

1,389,887

 

7,996

2.31%

 

1,399,542

16,168

2.33%

 

1,448,274

15,997

2.23%

State and municipal (5)

 

93,142

 

638

2.75%

 

93,872

1,264

2.72%

 

98,470

1,271

2.60%

Other securities (5)

 

3,416

 

40

4.70%

 

3,416

81

4.78%

 

3,558

74

4.19%

Total securities

 

1,486,445

 

8,674

2.34%

 

1,496,830

17,513

2.36%

 

1,550,302

17,342

2.26%

FHLBNY and FRB stock

 

46,650

 

794

6.83%

 

47,349

1,672

7.12%

 

51,750

1,534

5.98%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases, net of unearned income (5)(6)

 

4,802,757

 

57,022

4.76%

 

4,797,709

112,636

4.73%

 

4,719,312

104,304

4.46%

Total interest-earning assets

 

6,337,983

 

66,500

4.21%

 

6,344,120

131,841

4.19%

 

6,323,286

123,194

3.93%

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

404,426

 

 

 

 

398,762

 

 

 

348,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

6,742,409

 

 

 

$

6,742,882

 

 

$

6,671,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing checking, savings & money market

$

2,947,077

 

4,970

0.68%

$

2,943,765

9,441

0.65%

$

2,814,601

3,587

0.26%

Time deposits

 

671,197

 

2,620

1.57%

 

658,242

 

4,746

1.45%

 

689,404

 

2,808

0.82%

Total interest-bearing deposits

 

3,618,274

 

7,590

0.84%

 

3,602,007

14,187

0.79%

 

3,504,005

6,395

0.37%

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased & securities sold under

 

 

 

 

 

 

 

 

 

 

 

 

agreements to repurchase

 

54,340

 

33

0.24%

 

63,451

77

0.24%

 

64,649

80

0.25%

Other borrowings

 

948,714

 

5,825

2.46%

 

971,119

11,869

2.46%

 

1,098,818

9,821

1.80%

Trust preferred debentures

 

16,921

 

327

7.75%

 

16,900

656

7.83%

 

16,728

586

7.06%

Total interest-bearing liabilities

 

4,638,249

 

13,775

1.19%

 

4,653,477

26,789

1.16%

 

4,684,200

16,882

0.73%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

1,356,354

 

 

 

 

1,347,538

 

 

 

1,344,270

 

 

Accrued expenses and other liabilities

 

97,727

 

 

 

 

101,409

 

 

 

62,856

 

 

Total liabilities

 

6,092,330

 

 

 

 

6,102,424

 

 

 

6,091,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tompkins Financial Corporation Shareholders’ equity

 

648,618

 

 

 

 

639,015

 

 

 

578,541

 

 

Noncontrolling interest

 

1,461

 

 

 

 

1,443

 

 

 

1,443

 

 

Total equity

 

650,079

 

 

 

 

640,458

 

 

 

579,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

6,742,409

 

 

 

$

6,742,882

 

 

$

6,671,310

 

 

Interest rate spread

 

 

 

3.02%

 

 

 

3.03%

 

 

 

3.20%

Net interest income/margin on earning assets

 

 

52,725

3.34%

 

 

105,052

3.34%

 

 

106,312

3.39%

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustments

 

 

(407)

 

 

 

(820)

 

 

 

(911)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income per consolidated financial statements

 

 

$

52,318

 

 

 

$

104,232

 

 

 

$

105,401

 

 

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter-Ended

Year-Ended

Period End Balance Sheet

 

Jun-19

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Dec-18

Securities

$

1,330,719

$

1,484,151

$

1,474,124

$

1,452,788

$

1,483,991

$

1,474,124

Originated loans and leases, net of unearned income and deferred costs and fees (2)

 

4,608,483

 

4,532,803

 

4,568,741

 

4,531,241

 

4,507,006

 

4,568,741

Acquired loans and leases (3)

 

247,319

 

256,897

 

265,198

 

271,468

 

284,187

 

265,198

Allowance for loan and lease losses

 

40,790

 

40,328

 

43,410

 

41,358

 

41,225

 

43,410

Total assets

 

6,654,390

 

6,738,719

 

6,758,436

 

6,746,960

 

6,745,800

 

6,758,436

Total deposits

 

4,988,897

 

4,989,925

 

4,888,959

 

5,025,082

 

4,792,229

 

4,888,959

Federal funds purchased and securities sold under agreements to repurchase

 

63,978

 

66,918

 

81,842

 

52,875

 

52,042

 

81,842

Other borrowings

 

824,562

 

923,427

 

1,076,075

 

988,515

 

1,229,956

 

1,076,075

Trust preferred debentures

 

16,949

 

16,906

 

16,863

 

16,820

 

16,777

 

16,863

Total common equity

 

656,201

 

645,823

 

619,459

 

597,636

 

589,173

 

619,459

Total equity

 

657,677

 

647,267

 

620,871

 

599,144

 

590,649

 

620,871

 

Average Balance Sheet

 

Average earning assets

$

6,337,983

$

6,350,325

$

6,364,113

$

6,356,781

$

6,348,562

$

6,342,019

Average assets

 

6,742,409

 

6,743,360

 

6,710,944

 

6,716,452

 

6,689,649

 

6,692,678

Average interest-bearing liabilities

 

4,638,249

 

4,668,875

 

4,606,536

 

4,644,533

 

4,709,122

 

4,654,625

Average equity

 

650,079

 

630,731

 

606,238

 

597,211

 

584,951

 

590,944

 

Share data

 

Weighted average shares outstanding (basic)

 

15,019,710

 

15,060,175

 

15,057,673

 

15,047,405

 

15,038,061

 

15,039,229

Weighted average shares outstanding (diluted)

 

15,085,945

 

15,136,523

 

15,135,750

 

15,144,491

 

15,135,970

 

15,132,257

Period-end shares outstanding

 

15,160,719

 

15,314,078

 

15,312,377

 

15,277,915

 

15,278,430

 

15,312,377

Common equity book value per share

$

43.28

$

42.17

$

40.45

$

39.12

$

38.56

$

40.45

Tangible book value per share (Non-GAAP)

$

36.77

$

35.73

$

33.98

$

32.60

$

32.02

$

33.98

 

Income Statement

 

Net interest income

$

52,318

$

51,914

$

53,236

$

53,163

$

52,714

$

211,800

Provision for loan/lease losses

 

601

 

445

 

2,058

 

272

 

1,045

 

3,942

Noninterest income

 

18,520

 

19,407

 

19,858

 

18,603

 

21,158

 

77,449

Noninterest expense

 

46,070

 

44,209

 

47,228

 

45,133

 

44,985

 

181,067

Income tax expense

 

4,743

 

5,595

 

4,866

 

5,427

 

5,751

 

21,805

Net income attributable to Tompkins Financial Corporation

 

19,392

 

21,040

 

18,911

 

20,902

 

22,059

 

82,308

Noncontrolling interests

 

32

 

32

 

31

 

32

 

32

 

127

Basic earnings per share (8)

$

1.27

$

1.37

$

1.24

$

1.37

$

1.44

$

5.39

Diluted earnings per share (8)

$

1.27

$

1.37

$

1.23

$

1.36

$

1.43

$

5.35

 

Nonperforming Assets

 

Originated nonaccrual loans and leases

$

16,543

$

15,165

$

19,340

$

17,518

$

19,082

$

19,340

Acquired nonaccrual loans and leases

 

2,363

 

2,579

 

2,856

 

2,659

 

2,673

 

2,856

Originated loans and leases 90 days past due and accruing

 

0

 

0

 

0

 

0

 

0

 

0

Troubled debt restructurings not included above

 

4,889

 

5,234

 

4,395

 

4,295

 

4,324

 

4,395

Total nonperforming loans and leases

 

23,795

 

22,978

 

26,591

 

24,472

 

26,079

 

26,591

OREO

 

2,229

 

1,595

 

1,595

 

1,870

 

2,233

 

1,595

Total nonperforming assets

$

26,024

$

24,573

$

28,186

$

26,342

$

28,312

$

28,186

 

Tompkins Financial Corporation – Summary Financial Data (Unaudited) – continued

 

 

Quarter-Ended

Year-Ended

Delinquency – Originated loan and lease portfolio

 

Jun-19

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Dec-18

Loans and leases 30-89 days past due and

 

 

 

 

 

 

 

 

 

 

 

 

accruing (2)

$

3,883

$

4,193

$

7,838

$

6,454

$

5,875

$

7,838

Loans and leases 90 days past due and accruing (2)

 

0

 

0

 

0

 

0

 

0

 

0

Total originated loans and leases past due and accruing (2)

 

3,883

 

4,193

 

7,838

 

6,454

 

5,875

 

7,838

 

Delinquency – Acquired loan and lease portfolio

Loans 30-89 days past due and accruing (3)(7)

$

493

$

474

$

67

$

1,109

$

1,108

$

67

Loans 90 days or more past due

 

1,229

 

1,218

 

1,316

 

1,420

 

1,110

 

1,316

Total acquired loans and leases past due and accruing

 

1,722

 

1,692

 

1,383

 

2,529

 

2,218

 

1,383

Total loans and leases past due and accruing

$

5,605

$

5,885

$

9,221

$

8,983

$

8,093

$

9,221

 

Allowance for Loan Losses – Originated loan and lease portfolio

Balance at beginning of period

$

40,245

$

43,321

$

41,289

$

41,111

$

40,107

$

39,686

Provision for loan and lease losses

 

590

 

480

 

2,046

 

208

 

1,035

 

3,897

Net loan and lease (recoveries) charge-offs

 

146

 

3,556

 

14

 

30

 

31

 

262

Allowance for loan and lease losses (originated

 

 

 

 

 

 

 

 

 

 

 

 

loan portfolio) – balance at end of period

$

40,689

$

40,245

$

43,321

$

41,289

$

41,111

$

43,321

 

Allowance for Loan Losses – Acquired loan and lease portfolio

Balance at beginning of period

$

83

$

89

$

69

$

114

$

104

$

85

Provision (credit) for loan and lease losses

 

11

 

(35)

 

12

 

64

 

10

 

45

Net loan and lease (recoveries) charge-offs

 

(7)

 

(29)

 

(8)

 

109

 

 

41

Allowance for loan and lease losses (acquired

 

 

 

 

 

 

 

 

 

 

 

 

loan portfolio) – balance at end of period

 

101

 

83

 

89

 

69

 

114

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

Total allowance for loan and lease losses

$

40,791

$

40,328

$

43,410

$

41,358

$

41,225

$

43,410

 

Loan Classification – Originated Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

$

36,619

$

33,689

$

28,074

$

34,245

$

44,068

$

28,074

Substandard

 

44,770

 

35,895

 

43,963

 

49,597

 

41,572

 

43,963

Loan Classification – Acquired Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

265

 

270

 

452

 

465

 

469

 

452

Substandard

 

2,857

 

2,830

 

2,914

 

3,041

 

3,180

 

2,914

Loan Classifications – Total Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

Special Mention

 

36,884

 

33,959

 

28,526

 

34,710

 

44,537

 

28,526

Substandard

 

47,627

 

38,725

 

46,877

 

52,638

 

44,752

 

46,877

Ratio Analysis

Credit Quality

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans and leases/total loans and leases (7)

 

0.49

%

 

0.48

%

 

0.55

%

 

0.51

%

 

0.54

%

 

0.55

%

Nonperforming assets/total assets

 

0.39

%

 

0.36

%

 

0.42

%

 

0.39

%

 

0.42

%

 

0.42

%

Allowance for originated loan and lease losses/total originated loans and leases

 

0.88

%

 

0.89

%

 

0.95

%

 

0.91

%

 

0.91

%

 

0.95

%

Allowance/nonperforming loans and leases

 

171.42

%

 

175.51

%

 

163.25

%

 

169.00

%

 

158.08

%

 

163.25

%

Net loan and lease losses annualized/total average loans and leases

 

0.01

%

 

0.30

%

 

0.00

%

 

0.01

%

 

0.00

%

 

0.01

%

 

Tompkins Financial Corporation – Summary Financial Data (Unaudited) – continued

 

 

Year-Ended

Capital Adequacy (period-end)

 

Jun-19

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Dec-18

Tangible common equity/tangible assets

 

8.50

%

 

8.24

%

 

7.81

%

 

7.49

%

 

7.36

%

 

7.81

%

 

Profitability

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets *

 

1.15

%

 

1.27

%

 

1.12

%

 

1.23

%

 

1.32

%

 

1.23

%

Return on average equity *

 

11.96

%

 

13.53

%

 

12.38

%

 

13.89

%

 

15.13

%

 

13.93

%

Net interest margin (TE) *

 

3.34

%

 

3.34

%

 

3.34

%

 

3.35

%

 

3.36

%

 

3.37

%

* Quarterly ratios have been annualized

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See « Tompkins Financial Corporation – Summary Financial Data (Unaudited) » tables for Non-GAAP related calculations.

Non-GAAP Disclosure – Adjusted Diluted Earnings Per Share

           

 

 

Quarter-Ended

Year-Ended

 

 

Jun-19

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Dec-18

Net income available to common shareholders

$

19,392

 

$

21,040

 

$

18,911

 

$

20,902

 

$

22,059

 

$

82,308

 

Income attributable to unvested stock-based compensation awards

 

306

 

 

349

 

 

291

 

 

318

 

 

359

 

 

1,315

 

Net earnings allocated to common shareholders

 

19,086

 

 

20,691

 

 

18,620

 

 

20,584

 

 

21,700

 

 

80,993

 

Gain on sale of real estate, net of tax

 

0

 

 

0

 

 

0

 

 

0

 

 

2,227

 

 

2,227

 

Write-down of impaired leases, net of tax

 

0

 

 

0

 

 

0

 

 

(388

)

 

(1,527

)

 

(1,915

)

Net income (Non-GAAP)

 

19,086

 

 

20,691

 

 

18,620

 

 

20,972

 

 

21,000

 

 

80,681

 

Weighted average shares outstanding (diluted)

 

15,085,945

 

 

15,136,523

 

 

15,135,750

 

 

15,144,491

 

 

15,135,970

 

 

15,132,257

 

Adjusted diluted earnings per share (Non-GAAP)

$

1.27

 

$

1.37

 

$

1.23

 

$

1.38

 

$

1.39

 

$

5.33

 

           
             

Non-GAAP Disclosure – Tangible Book Value Per Share

           

Total common equity

$

656,201

 

$

645,823

 

$

619,459

 

$

597,636

 

$

589,173

 

$

619,459

 

Less: Goodwill and intangibles (9)

 

98,698

 

 

98,694

 

 

99,106

 

 

99,543

 

 

99,983

 

 

99,106

 

Tangible common equity

 

557,503

 

 

547,129

 

 

520,353

 

 

498,093

 

 

489,190

 

 

520,353

 

Ending shares outstanding

 

15,160,719

 

 

15,314,078

 

 

15,312,377

 

 

15,277,915

 

 

15,278,430

 

 

15,312,377

 

Tangible book value per share (Non-GAAP)

$

36.77

 

$

35.73

 

$

33.98

 

$

32.60

 

$

32.02

 

$

33.98

 

 

Contacts

For more information:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

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