Tompkins Financial Corporation Reports First Quarter Earnings

By: Tompkins Financial Corporation via Business Wire News Releases

April 24, 2015 at 09:00 AM EDT

Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported net income and earnings per share that were in line with the same period last year. Net income was $12.7 million for the first quarter of 2015, compared to $12.6 million for the first quarter of 2014. Diluted earnings per share were $0.84 for the first quarter of 2015, unchanged from the same period last year.

President and CEO, Stephen S. Romaine said "We saw positive trends for business growth during the first quarter with loan and deposit levels both up from the same period last year, and from the most recent prior quarter. At the same time, our already excellent asset quality improved further, as we saw a decline in nonperforming assets and net recoveries during the period.”

FIRST QUARTER SELECTED HIGHLIGHTS:

Net interest income of $41.2 million was up 3.0% from the same period last year.
Total loans of $3.4 billion were up 7.0% over the same period in 2014.
Credit quality improved with non-performing assets representing 0.49% of total assets, which is the lowest this percentage has been over the past 24 quarters, and remains well below the most recent peer average of 1.24% reported by the Federal Reserve1.
Annualized return on average equity was 10.35% for the quarter ended March 31, 2015, compared to 10.88% for the same period in 2014.
Tangible book value per share is up 7.9% from the first quarter of 2014. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $41.2 million for the first quarter of 2015 increased 3.0% compared to the same period in 2014, and was down 1.1% from the fourth quarter of 2014. 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 2014. Although net interest margin declined from 3.53% in the fourth quarter of 2014, to 3.45% in the first quarter of 2015, the impact of the margin decline on net interest income was largely offset by $205.8 million growth in average loans during in the first quarter.

NONINTEREST INCOME

Noninterest income was $17.6 million for the first quarter of 2015, which reflects an increase of 1.2% over the same period last year and a decline of 2.3% from the fourth quarter of 2014. The decline from the prior quarter is primarily the result of higher gains on the sale of other real estate owned (OREO) in the fourth quarter of 2014. Fee based revenue related to insurance and deposit fees were up from the same quarter last year, while fees related to wealth management services were flat.

NONINTEREST EXPENSE

Noninterest expense was $39.7 million for the first quarter of 2015, up 3.9% compared to March 31, 2014, and up 1.7% from the fourth quarter of 2014. The increase in noninterest expense compared to the same period prior year is mainly a result of higher salary and wages expense.

ASSET QUALITY

Asset quality trends improved in nearly all categories during the quarter. Substandard and Special Mention loans declined by $45.8 million from the same period last year, and by $2.7 million from the previous quarter. The percentage of nonperforming assets to total assets improved to 0.49% at March 31, 2015, compared to 0.81% at March 31, 2014.

Provision for loan and lease losses was $209,000 for the first quarter of 2015, which was an improvement from the $743,000 for the first quarter of 2014. The Company reported net loan and lease recoveries of $279,000 in the first quarter of 2015, compared to net charge-offs of $699,000 in the first quarter of 2014.

The Company’s allowance for originated loan and lease losses totaled $28.7 million at March 31, 2015, which represented 0.99% of total originated loans, compared to 1.04% at March 31, 2014 and 0.99% at year-end 2014. The allowance for loan and lease losses covered 145.11% of nonperforming loans and leases as of March 31, 2015, compared to 78.88% at March 31, 2014 and 128.43% at year-end 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.85% is up from 8.68% at March 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.57%, up from 7.40% a year earlier.

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				03/31/2015			12/31/2014

Cash and noninterest bearing balances due from banks			$	62,017		$	53,921
Interest bearing balances due from banks				1,979			2,149
	Cash and Cash Equivalents			63,996			56,070

Trading securities, at fair value				8,605			8,992
Available-for-sale securities, at fair value (amortized cost of $1,436,118 at March 31,
	2015 and $1,397,458 at December 31, 2014)			1,449,926			1,402,236
Held-to-maturity securities, at amortized cost (fair value of $99,258 at March 31, 2015
	and $89,036 at December 31, 2014)			97,066			88,168
Originated loans and leases, net of unearned income and deferred costs and fees				2,898,533			2,839,974
Acquired loans and leases, covered				16,768			19,319
Acquired loans and leases, non-covered				512,256			533,995
Less: Allowance for loan and lease losses				29,485			28,997
	Net Loans and Leases			3,398,072			3,364,291

FDIC indemnification asset				1,318			1,903
Federal Home Loan Bank stock				21,035			21,259
Bank premises and equipment, net				59,650			59,800
Corporate owned life insurance				74,339			73,725
Goodwill				92,243			92,243
Other intangible assets, net				14,110			14,649
Accrued interest and other assets				77,173			86,225
	Total Assets		$	5,357,533		$	5,269,561

LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,398,201			2,247,708
	Time			916,975			898,081
	Noninterest bearing			967,590			1,023,365
	Total Deposits			4,282,766			4,169,154

Federal funds purchased and securities sold under agreements to repurchase				135,769			147,037
Other borrowings, including certain amounts at fair value of $10,920 at March 31, 2015
	and $10,961 at December 31, 2014			330,850			356,541
Trust preferred debentures				37,380			37,337
Other liabilities				66,472			69,909
	Total Liabilities		$	4,853,237		$	4,779,978

EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,997,989 at March 31, 2015; and 14,931,354 at December 31, 2014		1,500			1,493
	Additional paid-in capital			352,096			348,889
	Retained earnings			170,854			165,160
	Accumulated other comprehensive loss			(18,262	)		(24,011	)
	Treasury stock, at cost – 109,098 shares at March 31, 2015, and 111,436 shares
		at December 31, 2014		(3,377	)		(3,400	)

	Total Tompkins Financial Corporation Shareholders’ Equity			502,811			488,131
Noncontrolling interests				1,485			1,452
	Total Equity		$	504,296		$	489,583
	Total Liabilities and Equity		$	5,357,533		$	5,269,561

See notes to consolidated financial statements


TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended
(In thousands, except per share data) (Unaudited)		03/31/2015			03/31/2014
INTEREST AND DIVIDEND INCOME
Loans	$	37,376		$	36,954
Due from banks		1			1
Trading securities		94			112
Available-for-sale securities		7,814			7,936
Held-to-maturity securities		596			152
Federal Home Loan Bank stock and Federal Reserve Bank stock		347			210
Total Interest and Dividend Income		46,228			45,365
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		906			952
Other deposits		1,715			1,790
Federal funds purchased and securities sold under agreements to
repurchase		670			817
Trust preferred debentures		570			570
Other borrowings		1,139			1,209
Total Interest Expense		5,000			5,338
Net Interest Income		41,228			40,027
Less: Provision for loan and lease losses		209			743
Net Interest Income After Provision for Loan and Lease Losses		41,019			39,284
NONINTEREST INCOME
Insurance commissions and fees		7,370			7,257
Investment services income		4,007			4,010
Service charges on deposit accounts		2,157			2,116
Card services income		1,818			2,112
Mark-to-market loss on trading securities		(63	)		(59	)
Mark-to-market gain on liabilities held at fair value		41			65
Other income		2,026			1,839
Gain on sale of available-for-sale securities		290			94
Total Noninterest Income		17,646			17,434
NONINTEREST EXPENSES
Salaries and wages		17,568			16,646
Pension and other employee benefits		5,994			6,045
Net occupancy expense of premises		3,339			3,260
Furniture and fixture expense		1,450			1,337
FDIC insurance		741			811
Amortization of intangible assets		507			527
Other operating expense		10,093			9,584
Total Noninterest Expenses		39,692			38,210
Income Before Income Tax Expense		18,973			18,508
Income Tax Expense		6,260			5,906
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		12,713			12,602
Less: Net income attributable to noncontrolling interests		33			33
Net Income Attributable to Tompkins Financial Corporation	$	12,680		$	12,569
Basic Earnings Per Share	$	0.85		$	0.85
Diluted Earnings Per Share	$	0.84		$	0.84

See notes to consolidated financial statements


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

				Year to Date Period Ended							Year to Date Period Ended
				March 31, 2015							March 31, 2014
				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		$	1,388	$	1		0.29	%	$	1,026	$	1		0.40	%
	Securities (4)
		U.S. Government securities		1,435,574		7,853		2.22	%		1,284,771		7,373		2.33	%
		Trading securities		8,858		94		4.30	%		10,832		112		4.19	%
		State and municipal (5)		88,304		870		4.00	%		88,037		1,109		5.11	%
		Other securities (5)		3,764		30		3.23	%		5,194		44		3.44	%
		Total securities		1,536,500		8,847		2.34	%		1,388,834		8,638		2.52	%
	FHLBNY and FRB stock			20,765		347		6.78	%		20,137		210		4.23	%

	Total loans and leases, net of unearned income (5)(6)			3,398,319		37,954		4.53	%		3,192,520		37,399		4.75	%
	Total interest-earning assets			4,956,972		47,149		3.86	%		4,602,517		46,248		4.08	%

Other assets				358,030							379,516

	Total assets			5,315,002							4,982,033

LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings, & money market		2,348,973		990		0.17	%		2,287,871		1,097		0.19	%
		Time deposits		905,981		1,631		0.73	%		888,474		1,645		0.75	%
		Total interest-bearing deposits		3,254,954		2,621		0.33	%		3,176,345		2,742		0.35	%

Federal funds purchased & securities sold under
		agreements to repurchase		142,359		670		1.91	%		162,348		817		2.04	%
Other borrowings				347,690		1,139		1.33	%		248,678		1,209		1.97	%
Trust preferred debentures				37,352		570		6.19	%		37,184		570		6.22	%
	Total interest-bearing liabilities			3,782,355		5,000		0.54	%		3,624,555		5,338		0.60	%

Noninterest bearing deposits				973,212							834,864
Accrued expenses and other liabilities				62,388							54,099
	Total liabilities			4,817,955							4,513,518

Tompkins Financial Corporation Shareholders’ equity				495,579							467,048
Noncontrolling interest				1,468							1,467
	Total equity			497,047							468,515

	Total liabilities and equity		$	5,315,002						$	4,982,033
Interest rate spread								3.32	%						3.48	%
	Net interest income/margin on earning assets					42,149		3.45	%				40,910		3.60	%

Tax Equivalent Adjustment						(921	)						(883	)

	Net interest income per consolidated financial statements				$	41,228						$	40,027


Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)		Quarter-Ended														Year-Ended
		Mar-15			Dec-14			Sep-14			Jun-14			Mar-14			Dec-14

Period End Balance Sheet
Securities	$	1,555,597		$	1,499,396		$	1,431,837		$	1,420,226		$	1,408,918		$	1,499,396
Originated loans and leases, net of unearned income and deferred costs and fees (2)		2,898,533			2,839,974			2,674,971			2,610,289			2,555,522			2,839,974
Acquired loans and leases (3)		529,024			553,314			582,498			618,679			648,690			553,314
Allowance for loan and lease losses		29,485			28,997			27,786			27,517			28,014			28,997
Total assets		5,357,533			5,269,561			5,090,919			5,057,821			5,041,800			5,269,561
Total deposits		4,282,766			4,169,154			4,212,860			4,044,389			4,105,170			4,169,154
Federal funds purchased and securities sold under agreements to repurchase		135,769			147,037			128,368			144,796			158,794			147,037
Other borrowings		330,850			356,541			166,509			287,158			214,616			356,541
Trust preferred debentures		37,380			37,337			37,298			37,254			37,211			37,337
Total common equity		502,811			488,131			489,060			487,720			472,337			488,131
Total equity		504,296			489,583			490,611			489,237			473,822			489,583

Average Balance Sheet
Average earning assets	$	4,956,972		$	4,799,027		$	4,695,860		$	4,666,722		$	4,602,517		$	4,691,582
Average assets		5,315,002			5,193,347			5,058,608			5,030,395			4,982,033			5,066,655
Average interest-bearing liabilities		3,782,355			3,668,311			3,587,673			3,620,130			3,624,555			3,625,184
Average equity		497,047			495,531			489,920			480,063			468,515			483,599

Share data
Weighted average shares outstanding (basic)		14,701,397			14,639,631			14,711,709			14,709,881			14,644,548			14,676,622
Weighted average shares outstanding (diluted)		14,837,935			14,765,855			14,795,343			14,821,191			14,775,386			14,789,624
Period-end shares outstanding		14,962,079			14,895,444			14,794,092			14,853,439			14,829,007			14,895,444
Common equity book value per share	$	33.61		$	32.77		$	33.06		$	32.84		$	31.85		$	32.77
Tangible book value per share (Non-GAAP)	$	26.56		$	25.66		$	25.87		$	25.65		$	24.62		$	25.66

Income Statement
Net interest income	$	41,228		$	41,692		$	41,575		$	40,516		$	40,027		$	163,810
Provision (Credit) for loan/lease losses		209			1,555			(59	)		67			743			2,306
Noninterest income		17,646			18,056			17,555			17,720			17,434			70,765
Noninterest expense		39,692			39,018			38,537			38,928			38,210			154,693
Income tax expense		6,260			6,453			6,897			6,148			5,906			25,404
Net income attributable to Tompkins Financial Corporation		12,680			12,689			13,722			13,061			12,569			52,041
Noncontrolling interests		33			33			33			32			33			131
Basic earnings per share (9)	$	0.85		$	0.86		$	0.92		$	0.88		$	0.85		$	3.51
Diluted earnings per share (9)	$	0.84		$	0.85		$	0.92		$	0.87		$	0.84		$	3.48

Nonperforming Assets
Originated nonaccrual loans and leases	$	13,811		$	14,299		$	16,319		$	16,918		$	26,974		$	14,299
Acquired nonaccrual loans and leases		4,683			4,729			4,998			5,907			6,936			4,729
Originated loans and leases 90 days past due and accruing		236			106			395			543			339			106
Troubled debt restructurings not included above		1,589			3,444			3,800			3,327			1,266			3,444
Total nonperforming loans and leases		20,319			22,578			25,512			26,695			35,515			22,578
OREO (8)		5,816			5,683			6,533			6,795			5,351			5,683
Total nonperforming assets	$	26,135		$	28,261		$	32,045		$	33,490		$	40,866		$	28,261


		Quarter-Ended														Year-Ended
Delinquency - Originated loan and lease portfolio		Mar-15			Dec-14			Sep-14			Jun-14			Mar-14			Dec-14
Loans and leases 30-89 days past due and
accruing (2)	$	2,438		$	6,849		$	3,811		$	5,221		$	5,660		$	6,849
Loans and leases 90 days past due and accruing (2)		236			106			395			543			339			106
Total originated loans and leases past due and accruing (2)		2,674			6,955			4,206			5,764			5,999			6,955

Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	547		$	533		$	0		$	0		$	635		$	533
Covered loans and leases 90 days or more past
due and accruing (3)(7)		682			914			1,149			904			1,135			914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		2,546			1,186			736			1,620			2,293			1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)		2,811			2,614			3,171			3,048			3,746			2,614
Total acquired loans and leases past due and accruing		6,586			5,247			5,056			5,572			7,809			5,247
Total loans and leases past due and accruing	$	9,260		$	12,202		$	9,262		$	11,336		$	13,808		$	12,202

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	28,156		$	27,185		$	26,752		$	26,661		$	26,700		$	26,700
Provision (Credit) for loan and lease losses		340			1,102			(264	)		(56	)		511			1,293
Net loan and lease (recoveries) charge-offs		(194	)		131			(697	)		(147	)		550			(163	)
Allowance for loan and lease losses (originated		28,690			28,156			27,185			26,752			26,661			28,156
loan portfolio) - balance at end of period	$	28,690		$	28,156		$	27,185		$	26,752		$	26,661		$	28,156

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	841		$	601		$	765		$	1,353		$	1,270		$	1,270
Provision for loan and lease losses		(131	)		453			205			123			232			1,013
Net loan and lease charge-offs		(85	)		213			369			711			149			1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		795			841			601			765			1,353			841
Total allowance for loan and lease losses	$	29,485		$	28,997		$	27,786		$	27,517		$	28,014		$	28,997

Loan Classification - Originated Portfolio
Special Mention	$	34,965		$	36,331		$	27,854		$	35,484		$	44,725		$	36,331
Substandard		19,150			19,970			25,889			21,253			32,917			19,970
Loan Classification - Acquired Portfolio
Special Mention		5,053			5,758			7,605			12,124			14,936			5,758
Substandard		21,752			21,567			24,034			30,273			34,137			21,567
Loan Classifications - Total Portfolio
Special Mention		40,018			42,089			35,459			47,608			59,661			42,089
Substandard		40,902			41,537			49,923			51,526			67,054			41,537


RATIO ANALYSIS		Quarter-Ended														Year-Ended
Credit Quality		Mar-15			Dec-14			Sep-14			Jun-14			Mar-14			Dec-14
Nonperforming loans and leases/total loans and leases (7)		0.59	%		0.67	%		0.78	%		0.83	%		1.11	%		0.67	%
Nonperforming assets/total assets		0.49	%		0.54	%		0.63	%		0.66	%		0.81	%		0.54	%
Allowance for originated loan and lease losses/total originated loans and leases		0.99	%		0.99	%		1.02	%		1.02	%		1.04	%		0.99	%
Allowance/nonperforming loans and leases		145.11	%		128.43	%		108.92	%		103.08	%		78.88	%		128.43	%
Net loan and lease losses (recoveries) annualized/total average loans and leases		(0.03	%)		0.04	%		(0.04	%)		0.07	%		0.09	%		0.04	%

Capital Adequacy (period-end)
Tier 1 capital / average assets *		8.85	%		8.75	%		8.85	%		8.79	%		8.68	%		8.75	%
Total capital / risk-weighted assets *		13.37	%		13.60	%		13.92	%		13.92	%		13.67	%		13.60	%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework

Profitability
Return on average assets *		0.97	%		0.97	%		1.08	%		1.04	%		1.02	%		1.03	%
Return on average equity *		10.35	%		10.16	%		11.11	%		10.91	%		10.88	%		10.76	%
Net interest margin (TE) *		3.45	%		3.53	%		3.58	%		3.55	%		3.60	%		3.57	%
* Quarterly ratios have been annualized


Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity	$	502,811		$	488,131		$	489,060		$	487,720		$	472,337		$	488,131
Less: Goodwill and intangibles (10)		105,344			105,852			106,377			106,690			107,219			105,852
Tangible common equity		397,467			382,279			382,683			381,030			365,118			382,279
Total assets		5,357,533			5,269,561			5,090,919			5,057,821			5,041,800			5,269,561
Less: Goodwill and intangibles (10)		105,344			105,852			106,377			106,690			107,219			105,852
Tangible assets		5,252,189			5,163,709			4,984,542			4,951,131			4,934,581			5,163,709
Tangible common equity / tangible assets (Non-GAAP)		7.57	%		7.40	%		7.68	%		7.70	%		7.40	%		7.40	%


Non-GAAP Disclosure - Return on Average		Quarter-Ended														Year-Ended
Tangible Common Equity		Mar-15			Dec-14			Sep-14			Jun-14			Mar-14			Dec-14
Net income available to common shareholders	$	12,680		$	12,689		$	13,722		$	13,061		$	12,569		$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		182			150			119			118			117			503
Net income available to common shareholders		12,498			12,539			13,603			12,943			12,452			51,538
Amortization of intangibles (net of tax)		304			315			311			315			316			1,257
Adjusted net operating income (Non-GAAP)		12,802			12,854			27,755			26,437			12,768			52,795
Average common equity	$	495,579		$	493,986		$	488,386		$	478,561		$	467,048		$	482,087
Less: Average goodwill and intangibles (10)		105,644			106,151			106,471			106,988			107,399			106,748
Average tangible common equity capital		389,935			387,835			381,915			371,573			359,649			375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)		13.32	%		13.15	%		14.46	%		14.31	%		14.40	%		14.07	%


Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity	$	502,811		$	488,131		$	489,060		$	487,720		$	472,337		$	488,131
Less: Goodwill and intangibles (10)		105,344			105,852			106,377			106,690			107,219			105,852
Tangible common equity		397,467			382,279			382,683			381,030			365,118			382,279
Ending shares outstanding		14,962,079			14,895,444			14,794,092			14,853,439			14,829,007			14,895,444
Tangible book value per share (Non-GAAP)	$	26.56		$	25.66		$	25.87		$	25.65		$	24.62		$	25.66


(1) Federal Reserve peer ratio as of December 31, 2014, 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, 2014.
(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.
(10) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

Contacts:

Tompkins Financial Corporation
Stephen S. Romaine, 888-503-5753
President & CEO
or
Francis M. Fetsko, 888-503-5753
Executive VP, CFO & COO