Tompkins Financial Corporation (NYSEMKT:TMP)
Tompkins Financial Corporation reported net income of $12.6 million for the first quarter of 2014, an increase of 9.2% from the $11.5 million reported for the same period in 2013. Diluted earnings per share were $0.84 for the first quarter of 2014, a 6.3% increase from $0.79 reported for the first quarter of 2013. Prior period results included in this press release were impacted by certain non-recurring items, which are more fully described in the non-GAAP disclosure tables included with this press release.
President and CEO Stephen S. Romaine said, "We are pleased to start 2014 with the strongest first quarter in our history. In addition to earnings per share growth over the first quarter of 2013, loan and deposit levels increased from the same period last year, and from the most recent prior quarter. At the same time we saw continued improvement in nearly all credit quality indicators.”
FIRST QUARTER SELECTED HIGHLIGHTS:
- Net interest income of $40.0 million was up 4.8% from the same period last year.
- Annualized return on average equity was 10.88% for the quarter ended March 31, 2014, compared to 10.53% for the same period in 2013.
- Tangible book value per share has increased for the third consecutive quarter, and is up 5.8% from the first quarter of 2013. Refer to Non-GAAP disclosure for additional details on tangible book value per share.
- Credit quality improved with non-performing assets representing 0.81% of total assets, which is the lowest this percentage has been over the past 20 quarters, and remains well below the most recent peer average of 1.69% by the Federal Reserve1.
- Total loans of $3.2 billion were up 7.0% over the same period in 2013, and were up an annualized 1.3% over year-end 2013.
- The average cost of deposits declined from 0.34% in the first quarter of 2013, to 0.28% in 2014. Average total deposits for the first quarter of 2014 were $4.0 billion, which is comparable to the same period in 2013.
NET INTEREST INCOME
Net interest income of $40.0 million for the first quarter of 2014 increased 4.8% compared to $38.2 million reported for the same period in 2013. Net interest income was down $2.6 million or 6.1% from the fourth quarter of 2013. The fourth quarter included higher interest income related to interest collected on the payoff of a nonaccrual loan and a higher level of purchase accounting accretion related to loans paid off during the fourth quarter of 2013. The net interest margin for the first quarter of 2014 was 3.60% compared to 3.57% for the first quarter of 2013 and 3.78% for the fourth quarter of 2013.
NONINTEREST INCOME
Noninterest income was $17.4 million for the first quarter of 2014, which was in line with both the same period prior year and the fourth quarter of 2013. Noninterest income represented 30.3% of total revenue for the first quarter of 2014, compared to 31.3% for the same period in 2013. Fee based services related to wealth management, deposit fees, and card services fees, were all up from the same period in 2013, while insurance revenues were in line with the prior year period. Other noninterest income was down from the first quarter of 2013, in part due to certain nonrecurring items in the first quarter of 2013. The first quarter of 2014 also saw a decline in realized gains on the sale of securities, when compared to the first quarter of 2013.
NONINTEREST EXPENSE
Noninterest expense was $38.2 million for the first quarter of 2014, up 1.8% compared to March 31, 2013, and down 5.1% from the fourth quarter of 2013. The increase in noninterest expense compared to the same period prior year is mainly a result of higher salary and wages expense. The decline in noninterest expense when compared to the fourth quarter of 2013 was driven by higher salary and wages in the fourth quarter, which included increased variable compensation accruals, reflecting the Company’s strong performance in 2013.
ASSET QUALITY
Asset quality trends improved in nearly all categories during the quarter. Substandard and Special Mention loans declined by $39.5 million from the same period last year, and by $1.6 million from the most recent previous quarter. The percentage of nonperforming loans and leases to total loans and leases improved to 1.11% at March 31, 2014, compared to 1.24% reported at March 31, 2013.
Provision for loan and lease losses was $743,000 for the first quarter of 2014, which was an improvement of 28.4% compared to the first quarter of 2013. Net loan and lease charge-offs totaled $699,000 in the first quarter of 2014, down from $1.0 million in the first quarter of 2013.
The Company’s allowance for originated loan and lease losses totaled $26.7 million at March 31, 2014, which represented 1.04% of total originated loans, compared to 1.11% at March 31, 2013 and 1.06% at year-end 2013. The allowance for loan and lease losses covered 78.88% of nonperforming loans and leases as of March 31, 2014, compared to 66.16% at March 31, 2013 and 71.65% at year-end 2013.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets improved for the fifth consecutive quarter, to 8.68% at March 31, 2014, and the ratio of total capital to risk-weighted assets was 13.68%.
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, The Bank of Castile, Mahopac Bank, 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.
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.
"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.
| TOMPKINS FINANCIAL CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CONDITION | ||||||||
| (In thousands, except share and per share data) (Unaudited) | As of | As of | ||||||
| ASSETS | 03/31/2014 | 12/31/2013 | ||||||
| Cash and noninterest bearing balances due from banks | $ | 97,283 | $ | 82,163 | ||||
| Interest bearing balances due from banks | 1,016 | 721 | ||||||
| Cash and Cash Equivalents | 98,299 | 82,884 | ||||||
| Trading securities, at fair value | 10,498 | 10,991 | ||||||
Available-for-sale securities, at fair value (amortized cost of $1,384,804 at March 31, 2014 and $1,368,736 at December 31, 2013) | 1,379,600 | 1,354,811 | ||||||
Held-to-maturity securities, fair value of $19,434 at March 31, 2014, and $19,625 at December 31, 2013 | 18,820 | 18,980 | ||||||
| Originated loans and leases, net of unearned income and deferred costs and fees | 2,555,522 | 2,527,244 | ||||||
| Acquired loans and leases, covered | 24,106 | 25,868 | ||||||
| Acquired loans and leases, non-covered | 624,584 | 641,172 | ||||||
| Less: Allowance for loan and lease losses | 28,014 | 27,970 | ||||||
| Net Loans and Leases | 3,176,198 | 3,166,314 | ||||||
| FDIC Indemnification Asset | 3,999 | 4,790 | ||||||
| Federal Home Loan Bank stock | 18,240 | 25,041 | ||||||
| Bank premises and equipment, net | 56,776 | 55,932 | ||||||
| Corporate owned life insurance | 72,339 | 69,335 | ||||||
| Goodwill | 92,246 | 92,140 | ||||||
| Other intangible assets, net | 16,004 | 16,298 | ||||||
| Accrued interest and other assets | 98,781 | 105,523 | ||||||
| Total Assets | $ | 5,041,800 | $ | 5,003,039 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Interest bearing: | ||||||||
| Checking, savings and money market | 2,338,780 | 2,190,616 | ||||||
| Time | 898,884 | 865,702 | ||||||
| Noninterest bearing | 867,506 | 890,898 | ||||||
| Total Deposits | 4,105,170 | 3,947,216 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase | 158,794 | 167,724 | ||||||
Other borrowings, including certain amounts at fair value of $11,228 at March 31, 2014 and $11,292 at December 31, 2013 | 214,616 | 331,531 | ||||||
| Trust preferred debentures | 37,211 | 37,169 | ||||||
| Other liabilities | 52,187 | 61,460 | ||||||
| Total Liabilities | $ | 4,567,978 | $ | 4,545,100 | ||||
| EQUITY | ||||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,864,917 at March 31, 2014; and 14,785,007 at December 31, 2013 | 1,486 | 1,479 | ||||||
| Additional paid-in capital | 349,812 | 346,096 | ||||||
| Retained earnings | 143,766 | 137,102 | ||||||
| Accumulated other comprehensive loss | (19,685 | ) | (25,119 | ) | ||||
Treasury stock, at cost – 103,921 shares at March 31, 2014, and 105,449 shares at December 31, 2013 | (3,042 | ) | (3,071 | ) | ||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 472,337 | 456,487 | ||||||
| Noncontrolling interests | 1,485 | 1,452 | ||||||
| Total Equity | $ | 473,822 | $ | 457,939 | ||||
| Total Liabilities and Equity | $ | 5,041,800 | $ | 5,003,039 | ||||
| TOMPKINS FINANCIAL CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| Three Months Ended | ||||||||
| (In thousands, except per share data) (Unaudited) | 03/31/2014 | 03/31/2013 | ||||||
| INTEREST AND DIVIDEND INCOME | ||||||||
| Loans | $ | 36,954 | $ | 36,429 | ||||
| Due from banks | 1 | 7 | ||||||
| Trading securities | 112 | 165 | ||||||
| Available-for-sale securities | 7,936 | 7,480 | ||||||
| Held-to-maturity securities | 152 | 191 | ||||||
| Federal Home Loan Bank stock and Federal Reserve Bank stock | 210 | 185 | ||||||
| Total Interest and Dividend Income | 45,365 | 44,457 | ||||||
| INTEREST EXPENSE | ||||||||
| Time certificates of deposits of $100,000 or more | 952 | 1,204 | ||||||
| Other deposits | 1,790 | 2,182 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 817 | 1,010 | ||||||
| Trust preferred debentures | 570 | 687 | ||||||
| Other borrowings | 1,209 | 1,168 | ||||||
| Total Interest Expense | 5,338 | 6,251 | ||||||
| Net Interest Income | 40,027 | 38,206 | ||||||
| Less: Provision for loan and lease losses | 743 | 1,038 | ||||||
| Net Interest Income After Provision for Loan and Lease Losses | 39,284 | 37,168 | ||||||
| NONINTEREST INCOME | ||||||||
| Insurance commissions and fees | 7,257 | 7,261 | ||||||
| Investment services income | 4,010 | 3,788 | ||||||
| Service charges on deposit accounts | 2,116 | 1,908 | ||||||
| Card services income | 2,112 | 1,738 | ||||||
| Mark-to-market loss on trading securities | (59 | ) | (115 | ) | ||||
| Mark-to-market gain on liabilities held at fair value | 65 | 77 | ||||||
| Other income | 1,839 | 2,366 | ||||||
| Gain on sale of available-for-sale securities | 94 | 367 | ||||||
| Total Noninterest Income | 17,434 | 17,390 | ||||||
| NONINTEREST EXPENSES | ||||||||
| Salaries and wages | 16,646 | 15,572 | ||||||
| Pension and other employee benefits | 6,045 | 6,070 | ||||||
| Net occupancy expense of premises | 3,260 | 3,061 | ||||||
| Furniture and fixture expense | 1,337 | 1,457 | ||||||
| FDIC insurance | 811 | 772 | ||||||
| Amortization of intangible assets | 527 | 557 | ||||||
| Merger related expenses | 0 | 196 | ||||||
| Other operating expense | 9,584 | 9,835 | ||||||
| Total Noninterest Expenses | 38,210 | 37,520 | ||||||
| Income Before Income Tax Expense | 18,508 | 17,038 | ||||||
| Income Tax Expense | 5,906 | 5,495 | ||||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 12,602 | 11,543 | ||||||
| Less: Net income attributable to noncontrolling interests | 33 | 33 | ||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 12,569 | $ | 11,510 | ||||
| Basic Earnings Per Share | $ | 0.85 | $ | 0.80 | ||||
| Diluted Earnings Per Share | $ | 0.84 | $ | 0.79 | ||||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||||||||
| Year to Date Period Ended | Year to Date Period Ended | |||||||||||||||||||||
| March 31, 2014 | March 31, 2013 | |||||||||||||||||||||
| Average | Average | |||||||||||||||||||||
| Balance | Average | Balance | Average | |||||||||||||||||||
| (Dollar amounts in thousands) | (YTD) | Interest | Yield/Rate | (YTD) | Interest | Yield/Rate | ||||||||||||||||
| ASSETS | ||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 1,026 | $ | 1 | 0.40 | % | $ | 3,908 | $ | 7 | 0.73 | % | ||||||||||
| Securities (4) | ||||||||||||||||||||||
| U.S. Government securities | 1,284,771 | 7,373 | 2.33 | % | 1,297,578 | 6,794 | 2.12 | % | ||||||||||||||
| Trading securities | 10,832 | 112 | 4.19 | % | 16,126 | 165 | 4.15 | % | ||||||||||||||
| State and municipal (5) | 88,037 | 1,109 | 5.11 | % | 100,089 | 1,299 | 5.26 | % | ||||||||||||||
| Other securities (5) | 5,194 | 44 | 3.44 | % | 9,158 | 90 | 3.99 | % | ||||||||||||||
| Total securities | 1,388,834 | 8,638 | 2.52 | % | 1,422,951 | 8,348 | 2.38 | % | ||||||||||||||
| FHLBNY and FRB stock | 20,137 | 210 | 4.23 | % | 18,859 | 185 | 3.98 | % | ||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 3,192,520 | 37,399 | 4.75 | % | 2,963,737 | 36,567 | 5.00 | % | ||||||||||||||
| Total interest-earning assets | 4,602,517 | 46,248 | 4.08 | % | 4,409,455 | 45,107 | 4.15 | % | ||||||||||||||
| Other assets | 379,516 | 490,272 | ||||||||||||||||||||
| Total assets | 4,982,033 | 4,899,727 | ||||||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,287,871 | 1,097 | 0.19 | % | 2,269,900 | 1,418 | 0.25 | % | ||||||||||||||
| Time deposits | 888,474 | 1,645 | 0.75 | % | 979,860 | 1,968 | 1.02 | % | ||||||||||||||
| Total interest-bearing deposits | 3,176,345 | 2,742 | 0.35 | % | 3,249,760 | 3,386 | 0.42 | % | ||||||||||||||
Federal funds purchased & securities sold under agreements to repurchase | 162,348 | 817 | 2.04 | % | 198,707 | 1,010 | 2.06 | % | ||||||||||||||
| Other borrowings | 248,678 | 1,209 | 1.97 | % | 119,606 | 1,168 | 3.96 | % | ||||||||||||||
| Trust preferred debentures | 37,184 | 570 | 6.22 | % | 43,675 | 687 | 6.38 | % | ||||||||||||||
| Total interest-bearing liabilities | 3,624,555 | 5,338 | 0.60 | % | 3,611,748 | 6,251 | 0.70 | % | ||||||||||||||
| Noninterest bearing deposits | 834,864 | 771,761 | ||||||||||||||||||||
| Accrued expenses and other liabilities | 54,099 | 72,941 | ||||||||||||||||||||
| Total liabilities | 4,513,518 | 4,456,450 | ||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 467,048 | 441,810 | ||||||||||||||||||||
| Noncontrolling interest | 1,467 | 1,467 | ||||||||||||||||||||
| Total equity | 468,515 | 443,277 | ||||||||||||||||||||
| Total liabilities and equity | $ | 4,982,033 | $ | 4,899,727 | ||||||||||||||||||
| Interest rate spread | 3.48 | % | 3.45 | % | ||||||||||||||||||
| Net interest income/margin on earning assets | 40,910 | 3.60 | % | 38,856 | 3.57 | % | ||||||||||||||||
| Tax Equivalent Adjustment | (883 | ) | (650 | ) | ||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 40,027 | $ | 38,206 | ||||||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) | ||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||||||||
| Mar-14 | Dec-13 | Sep-13 | Jun-13 | Mar-13 | Dec-13 | |||||||||||||
| Period End Balance Sheet | ||||||||||||||||||
| Securities | $ | 1,408,918 | $ | 1,384,782 | $ | 1,390,233 | $ | 1,469,315 | $ | 1,566,510 | $ | 1,384,782 | ||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 2,555,522 | 2,527,244 | 2,420,695 | 2,309,232 | 2,208,346 | 2,527,244 | ||||||||||||
| Acquired loans and leases (3) | 648,690 | 667,040 | 698,617 | 745,951 | 785,449 | 667,040 | ||||||||||||
| Allowance for loan and lease losses | 28,014 | 27,970 | 26,408 | 25,458 | 24,661 | 27,970 | ||||||||||||
| Total assets | 5,041,800 | 5,003,039 | 4,932,428 | 4,931,883 | 4,987,280 | 5,003,039 | ||||||||||||
| Total deposits | 4,105,170 | 3,947,216 | 3,972,756 | 3,912,910 | 4,072,352 | 3,947,216 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 158,794 | 167,724 | 162,117 | 171,498 | 194,091 | 167,724 | ||||||||||||
| Other borrowings | 214,616 | 331,531 | 242,177 | 299,098 | 156,649 | 331,531 | ||||||||||||
| Trust preferred debentures | 37,211 | 37,169 | 37,127 | 43,703 | 43,687 | 37,169 | ||||||||||||
| Shareholders' equity | 473,822 | 457,939 | 444,276 | 431,894 | 446,812 | 457,939 | ||||||||||||
| Average Balance Sheet | ||||||||||||||||||
| Average earning assets | $ | 4,602,517 | $ | 4,571,099 | $ | 4,533,603 | $ | 4,571,428 | $ | 4,409,455 | $ | 4,521,873 | ||||||
| Average assets | 4,982,033 | 4,950,476 | 4,897,678 | 4,965,895 | 4,899,727 | 4,928,499 | ||||||||||||
| Average interest-bearing liabilities | 3,624,555 | 3,574,803 | 3,572,708 | 3,663,230 | 3,611,748 | 3,605,430 | ||||||||||||
| Average equity | 468,515 | 449,445 | 434,482 | 447,088 | 443,277 | 443,565 | ||||||||||||
| Share data | ||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,644,548 | 14,589,120 | 14,515,053 | 14,427,838 | 14,374,265 | 14,477,617 | ||||||||||||
| Weighted average shares outstanding (diluted) | 14,775,386 | 14,731,786 | 14,622,512 | 14,496,859 | 14,436,757 | 14,573,919 | ||||||||||||
| Period-end shares outstanding | 14,829,007 | 14,749,097 | 14,692,671 | 14,599,558 | 14,447,017 | 14,749,097 | ||||||||||||
| Book value per share | 31.95 | 31.05 | 30.24 | 29.58 | 30.93 | 31.05 | ||||||||||||
| Tangible book value per share (Non-GAAP) | 24.65 | 23.70 | 22.82 | 22.08 | 23.29 | 23.70 | ||||||||||||
| Income Statement | ||||||||||||||||||
| Net interest income | $ | 40,027 | $ | 42,624 | $ | 40,473 | $ | 39,826 | $ | 38,206 | $ | 161,129 | ||||||
| Provision for loan/lease losses | 743 | 585 | 2,049 | 2,489 | 1,038 | 6,161 | ||||||||||||
| Noninterest income | 17,434 | 17,439 | 18,528 | 16,541 | 17,390 | 69,898 | ||||||||||||
| Noninterest expense | 38,210 | 40,251 | 37,554 | 37,777 | 37,520 | 153,102 | ||||||||||||
| Income tax expense | 5,906 | 4,905 | 5,316 | 5,061 | 5,495 | 20,777 | ||||||||||||
| Net income attributable to Tompkins Financial Corporation | 12,602 | 14,290 | 14,049 | 11,007 | 11,510 | 50,856 | ||||||||||||
| Noncontrolling interests | 33 | 32 | 33 | 33 | 33 | 131 | ||||||||||||
| Basic earnings per share (9) | $ | 0.85 | $ | 0.97 | $ | 0.96 | $ | 0.76 | $ | 0.80 | $ | 3.48 | ||||||
| Diluted earnings per share (9) | $ | 0.84 | $ | 0.96 | $ | 0.95 | $ | 0.75 | $ | 0.79 | $ | 3.46 | ||||||
| Nonperforming Assets | ||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 26,974 | $ | 29,875 | $ | 33,881 | $ | 32,100 | $ | 32,554 | $ | 29,875 | ||||||
| Acquired nonaccrual loans and leases | 6,936 | 8,508 | 8,008 | 6,916 | 4,561 | 8,508 | ||||||||||||
| Originated loans and leases 90 days past due and accruing | 339 | 607 | 1,217 | 156 | 157 | 607 | ||||||||||||
| Troubled debt restructurings not included above | 1,266 | 45 | 46 | 0 | - | 45 | ||||||||||||
| Total nonperforming loans and leases | 35,515 | 39,035 | 43,152 | 39,172 | 37,272 | 39,035 | ||||||||||||
| OREO (8) | 5,351 | 4,253 | 6,264 | 4,918 | 3,950 | 4,253 | ||||||||||||
| Total nonperforming assets | 40,866 | 43,288 | 49,416 | 44,090 | 41,222 | 43,288 | ||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | |||||||||||||||||||||
| Quarter-Ended | Year-Ended | ||||||||||||||||||||
| Delinquency - Originated loan and lease portfolio | Mar-14 | Dec-13 | Sep-13 | Jun-13 | Mar-13 | Dec-13 | |||||||||||||||
Loans and leases 30-89 days past due and accruing (2) | $ | 5,660 | $ | 5,762 | $ | 12,193 | $ | 9,597 | $ | 10,888 | $ | 5,762 | |||||||||
| Loans and leases 90 days past due and accruing (2) | 339 | 607 | 1,217 | 156 | 157 | 607 | |||||||||||||||
| Total originated loans and leases past due and accruing (2) | 5,999 | 6,369 | 13,410 | 9,753 | 11,045 | 6,369 | |||||||||||||||
| Delinquency - Acquired loan and lease portfolio | |||||||||||||||||||||
| Covered loans and leases 30-89 days past due and accruing (3)(7) | 635 | 0 | 1,132 | 1,613 | 3,503 | 0 | |||||||||||||||
Covered loans and leases 90 days or more past due and accruing (3)(7) | 1,135 | 2,416 | 2,980 | 3,091 | 3,809 | 2,416 | |||||||||||||||
Non-covered loans and leases 30-89 days past due and accruing (3)(7) | 2,293 | 1,532 | 6,887 | 5,591 | 5,738 | 1,532 | |||||||||||||||
Non-Covered loans and leases 90 days past due and accruing (3)(7) | 3,746 | 4,557 | 10,521 | 13,324 | 14,026 | 4,557 | |||||||||||||||
| Total acquired loans and leases past due and accruing | 7,809 | 8,505 | 21,520 | 23,619 | 27,076 | 8,505 | |||||||||||||||
| Total loans and leases past due and accruing | $ | 13,808 | $ | 14,874 | $ | 34,930 | $ | 33,372 | $ | 38,121 | $ | 14,874 | |||||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | |||||||||||||||||||||
| Balance at beginning of period | $ | 26,700 | $ | 25,722 | $ | 24,853 | $ | 24,598 | $ | 24,643 | $ | 24,643 | |||||||||
| Provision for loan and lease losses | 511 | (325 | ) | 1,499 | (994 | ) | 820 | 1,000 | |||||||||||||
| Net loan and lease (recoveries) charge-offs | 550 | (1,303 | ) | 630 | (1,249 | ) | 865 | (1,057 | ) | ||||||||||||
| 26,661 | 26,700 | 25,722 | 24,853 | 24,598 | 26,700 | ||||||||||||||||
Allowance for loan and lease losses (originated loan portfolio) - balance at end of period | |||||||||||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | |||||||||||||||||||||
| Balance at beginning of period | $ | 1,270 | $ | 686 | $ | 605 | $ | 63 | $ | 0 | $ | 0 | |||||||||
| Provision for loan and lease losses | 232 | 910 | 549 | 3,483 | 218 | 5,160 | |||||||||||||||
| Net loan and lease charge-offs | 149 | 326 | 468 | 2,941 | 155 | 3,890 | |||||||||||||||
Allowance for loan and lease losses (acquired loan portfolio) - balance at end of period | 1,353 | 1,270 | 686 | 605 | 63 | 1,270 | |||||||||||||||
| Total allowance for loan and lease losses | 28,014 | 27,970 | 26,408 | 25,458 | 24,661 | 27,970 | |||||||||||||||
| Loan Classification - Originated Portfolio | |||||||||||||||||||||
| Special Mention | $ | 44,725 | $ | 42,365 | $ | 42,975 | $ | 43,099 | $ | 48,468 | $ | 42,365 | |||||||||
| Substandard | 32,917 | 35,022 | 37,004 | 41,969 | 43,449 | 35,022 | |||||||||||||||
| Loan Classification - Acquired Portfolio | |||||||||||||||||||||
| Special Mention | 14,936 | 17,322 | 23,939 | 29,300 | 26,568 | 17,322 | |||||||||||||||
| Substandard | 34,137 | 33,561 | 42,433 | 55,079 | 47,698 | 33,561 | |||||||||||||||
| Loan Classifications - Total Portfolio | |||||||||||||||||||||
| Special Mention | 59,661 | 59,687 | 66,914 | 72,399 | 75,036 | 59,687 | |||||||||||||||
| Substandard | 67,054 | 68,583 | 79,437 | 97,048 | 91,147 | 68,583 | |||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | ||||||||||||||||||||||||
| RATIO ANALYSIS | Quarter-Ended | Year-Ended | ||||||||||||||||||||||
| Credit Quality | Mar-14 | Dec-13 | Sep-13 | Jun-13 | Mar-13 | Dec-13 | ||||||||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 1.11 | % | 1.22 | % | 1.38 | % | 1.28 | % | 1.24 | % | 1.22 | % | ||||||||||||
| Nonperforming assets/total assets | 0.81 | % | 0.87 | % | 1.00 | % | 0.89 | % | 0.83 | % | 0.87 | % | ||||||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 1.04 | % | 1.06 | % | 1.06 | % | 1.08 | % | 1.11 | % | 1.06 | % | ||||||||||||
| Allowance/nonperforming loans and leases | 78.88 | % | 71.65 | % | 61.20 | % | 64.99 | % | 66.16 | % | 71.65 | % | ||||||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | 0.09 | % | (0.12 | %) | 0.14 | % | 0.22 | % | 0.14 | % | 0.09 | % | ||||||||||||
| Capital Adequacy (period-end) | ||||||||||||||||||||||||
| Tier 1 capital / average assets | 8.68 | % | 8.52 | % | 8.37 | % | 8.16 | % | 8.11 | % | 8.52 | % | ||||||||||||
| Total capital / risk-weighted assets | 13.68 | % | 13.42 | % | 13.32 | % | 13.34 | % | 12.93 | % | 13.42 | % | ||||||||||||
| Tangible common equity / tangible assets | 7.38 | % | 7.11 | % | 6.92 | % | 6.65 | % | 6.87 | % | 7.11 | % | ||||||||||||
| Profitability | ||||||||||||||||||||||||
| Return on average assets * | 1.02 | % | 1.15 | % | 1.10 | % | 0.89 | % | 0.95 | % | 1.03 | % | ||||||||||||
| Return on average equity * | 10.88 | % | 12.62 | % | 12.83 | % | 9.87 | % | 10.53 | % | 11.47 | % | ||||||||||||
| Net interest margin (TE) * | 3.60 | % | 3.78 | % | 3.63 | % | 3.58 | % | 3.57 | % | 3.65 | % | ||||||||||||
| * Quarterly ratios have been annualized | ||||||||||||||||||||||||
| Non-GAAP Disclosure | ||||||||||||||||||||||||
| Reported noninterest income (GAAP) | $ | 17,434 | $ | 17,439 | $ | 18,528 | $ | 16,541 | $ | 17,390 | $ | 69,898 | ||||||||||||
| Adjustments (pre-tax): | ||||||||||||||||||||||||
| Gain on redemption of trust preferred | 0 | 0 | (1,410 | ) | 0 | 0 | (1,410 | ) | ||||||||||||||||
| Gain on deposit conversion | 0 | (1,285 | ) | 0 | 0 | 0 | (1,285 | ) | ||||||||||||||||
| Noninterest income (Non-GAAP) | $ | 17,434 | $ | 16,154 | $ | 17,118 | $ | 16,541 | $ | 17,390 | $ | 67,203 | ||||||||||||
| Non-GAAP Disclosure | ||||||||||||||||||||||||
| Reported net income (GAAP) | $ | 12,569 | $ | 14,290 | $ | 14,049 | $ | 11,007 | $ | 11,510 | $ | 50,856 | ||||||||||||
| Adjustments (net of tax): | ||||||||||||||||||||||||
| Merger related expenses | 0 | 0 | 0 | 22 | 118 | 140 | ||||||||||||||||||
| Gain on redemption of trust preferred | 0 | 0 | (846 | ) | 0 | 0 | (846 | ) | ||||||||||||||||
| Gain on deposit conversion | 0 | (771 | ) | 0 | 0 | 0 | (771 | ) | ||||||||||||||||
| Subtotal adjustments | 0 | (771 | ) | (846 | ) | 22 | 118 | (1,477 | ) | |||||||||||||||
| Net operating income (Non-GAAP) | 12,569 | 13,519 | 13,203 | 11,029 | 11,628 | 49,379 | ||||||||||||||||||
| Adjusted diluted earnings per share (Non-GAAP) (9) | $ | 0.84 | $ | 0.91 | $ | 0.89 | $ | 0.75 | $ | 0.80 | $ | 3.36 | ||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | ||||||||||||||||||||||||
| Non-GAAP Disclosure | Quarter-Ended | Year-Ended | ||||||||||||||||||||||
| Mar-14 | Dec-13 | Sep-13 | Jun-13 | Mar-13 | Dec-13 | |||||||||||||||||||
| Reported net income (GAAP) | $ | 12,569 | $ | 14,290 | $ | 14,049 | $ | 11,007 | $ | 11,510 | $ | 50,856 | ||||||||||||
| Merger related expenses (net of tax) | 0 | 0 | 0 | 22 | 118 | 140 | ||||||||||||||||||
| Gain on redemption of trust preferred (net of tax) | 0 | 0 | (846 | ) | 0 | 0 | (846 | ) | ||||||||||||||||
| Gain on deposit conversion | 0 | (771 | ) | 0 | 0 | 0 | (771 | ) | ||||||||||||||||
| Net operating income (Non-GAAP) | $ | 12,569 | $ | 13,519 | $ | 13,203 | $ | 11,029 | $ | 11,628 | $ | 49,379 | ||||||||||||
| Amortization of intangibles (net of tax) | 316 | 329 | 327 | 328 | 334 | 1,318 | ||||||||||||||||||
| Adjusted net operating income (Non-GAAP) | 12,885 | 13,848 | 13,530 | 11,357 | 11,962 | 50,697 | ||||||||||||||||||
| Average total shareholders' equity | 468,515 | 449,445 | 434,482 | 447,088 | 443,277 | 443,565 | ||||||||||||||||||
| Less: Average goodwill and intangibles | 108,437 | 108,729 | 109,277 | 110,037 | 110,687 | 109,676 | ||||||||||||||||||
| Average tangible shareholders' equity (Non-GAAP) | 360,078 | 340,716 | 325,205 | 337,051 | 332,590 | 333,889 | ||||||||||||||||||
| Adjusted operating return on shareholders' tangible equity (annualized) (Non-GAAP) | 14.51 | % | 16.13 | % | 16.51 | % | 13.52 | % | 14.59 | % | 15.18 | % | ||||||||||||
| Non-GAAP Disclosure | ||||||||||||||||||||||||
| Total shareholders' equity (GAAP) | $ | 473,822 | $ | 457,939 | $ | 444,276 | $ | 431,894 | $ | 446,812 | $ | 457,939 | ||||||||||||
| Less: goodwill and intangibles | 108,250 | 108,438 | 108,981 | 109,540 | 110,314 | 108,438 | ||||||||||||||||||
| Tangible shareholders' equity | 365,572 | 349,501 | 335,295 | 322,354 | 336,498 | 349,501 | ||||||||||||||||||
| Ending shares outstanding | 14,829,007 | 14,749,097 | 14,692,671 | 14,599,558 | 14,447,017 | 14,749,097 | ||||||||||||||||||
| Tangible book value per share (Non-GAAP) | 24.65 | 23.70 | 22.82 | 22.08 | 23.29 | 23.70 | ||||||||||||||||||
_________________________________________________________
(1)
Federal Reserve peer ratio as of December 31, 2013, includes banks and
bank holding companies with consolidated assets between $3 billion and
$10 billion.
(2) "Originated" equals loans and leases not
included by definition in "acquired loans"
(3)
"Acquired Loans and Leases" equals loans and leases acquired at fair
value, accounted for in accordance with FASB ASC Topic 805. "Covered
Loans" are loans for which the Company will share losses with the FDIC
and consist of loans VIST Bank acquired as part of an FDIC-assisted
transaction during the fourth quarter of 2010.
(4) Average
balances and yields on available-for-sale securities are based on
historical amortized cost.
(5) Interest income includes the
tax effects of taxable-equivalent basis.
(6) Nonaccrual
loans are included in the average asset totals presented above. Payments
received on nonaccrual loans have been recognized as disclosed in Note 1
of the Company's consolidated financial statements included in Part I of
the Company's annual report on Form 10-K for the fiscal year ended
December 31, 2013.
(7) Certain acquired loans and leases
that are past due are not on nonaccrual and are not included in
nonperforming loans. The risk of credit loss on these loans has been
considered by virtue of the Corporation's estimate of acquisition-date
fair value and these loans are considered accruing as the Corporation
primarily recognizes interest income through accretion of the difference
between the carrying value of these loans and their expected cash flows.
(8)
Includes all other real estate owned, including those balances acquired
through business combinations.
(9) Earnings per share
year-to-date may not equal the sum of the quarterly earnings per share
as a result of rounding of average shares.
Contacts:
Stephen S. Romaine, 888-503-5753
President
& CEO
or
Francis M. Fetsko, 888-503-5753
CFO & COO
