Tompkins Financial Corporation (NYSEMKT:TMP)
Tompkins Financial Corporation reported diluted earnings per share of $0.96 for the third quarter of 2015, representing the best third quarter in Company history and an increase of 4.35% over $0.92 reported for the third quarter of 2014. Net income of $14.5 million for the third quarter of 2015, was up 5.6% from the $13.7 million reported for the same period in 2014.
For the year-to-date period ended September 30, 2015, diluted earnings per share were $2.96, reflecting an increase of 12.1% over the $2.64 reported for September 30, 2014. Year to date net income was $44.6 million, an increase of 13.3% from the $39.4 million reported for the same period in 2014. Year to date results were helped by a one-time curtailment gain of $3.6 million after tax ($0.24 per share), recognized in the second quarter of 2015, related to changes to the Company’s pension plan. If this gain was excluded from current year to date net income, diluted earnings per share would have been $2.72. The impact of this non-recurring item on the Company’s financial statements is more fully detailed in the non-GAAP disclosure tables included with this press release.
President and CEO, Stephen S. Romaine said "We are very pleased to report on record earnings performance for the third quarter of 2015. Continued growth in loans and deposits contributed to our success during the quarter, as earnings improved despite the challenging interest rate environment that continues to pressure net interest margin.”
SELECTED HIGHLIGHTS FOR THIRD QUARTER:
- Return on average equity was 11.29% for the quarter, up from 11.11% for the third quarter of 2014.
- Net interest income of $42.4 million was up 2.0% compared to the third quarter of 2014.
- Total loans of $3.6 billion were up 11.6% over September 30, 2014.
- Noninterest-bearing deposits of $1.1 billion were up 14.5% over the same period in 2014.
- Tangible book value per share increased 6.8% from the third quarter of 2014. Refer to Non-GAAP disclosure for additional details on tangible book value per share.
NET INTEREST INCOME
Net interest income of $42.4 million for the third quarter of 2015 reflected an increase of 2.0% when compared to the same period in 2014, despite a decline in net interest margin to 3.35% in the current period, down from 3.58% for the third quarter of 2014. Offsetting the decline in net interest margin was solid balance sheet growth, which included a 10.3% increase in average loans from the same quarter last year, and a 13.7% increase in average noninterest-bearing deposits over the same period.
For the year-to-date period, net interest income of $124.9 million was up 2.3% from the prior year, while net interest margin declined to 3.39% in 2015, compared to 3.58% in 2014.
NONINTEREST INCOME
Noninterest income was $17.4 million for the third quarter of 2015, and was in line with same period in 2014. Year-to-date noninterest income of $54.0 million was 2.5% ahead of the $52.7 million reported for September 30, 2014, and included gains on the sale of other real estate owned totaling $924,000 for 2015.
Noninterest income represented 29.1% of total revenue for the third quarter of 2015, compared to 29.7% for the same period in 2014. For the year-to-date period ending September 30, 2015, noninterest income represented 30.2% of total revenue, which was in line with the same period in 2014.
NONINTEREST EXPENSE
Noninterest expense was $37.9 million for the third quarter of 2015, down 1.7% compared to the third quarter of 2014. For the year-to-date period, noninterest expense was down 4.5% from the same period in 2014. The decrease in noninterest expense for the year-to-date period was mainly due to a $6.0 million gain on a pension plan curtailment recorded in the third quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan, which has been replaced with a more flexible defined contribution pension plan.
ASSET QUALITY
Asset quality remains strong in the third quarter of 2015. Nonperforming assets as a percentage of total assets represented 0.47% at September 30, 2015, down from 0.63% at September 30, 2014. Despite a modest increase from the 0.44% reported for the immediate prior quarter, the ratio remains well below the most recent Federal Reserve Board Peer Group Average1 of 0.80%. Additionally, substandard and special mention loans declined by $15.2 million from the same period last year, and by $628,000 from the previous quarter.
Provision for loan and lease losses was $281,000 for the third quarter of 2015, up $340,000 from the negative provision of $59,000 reported for third quarter of 2014. The increased provision expense over the third quarter of 2014 is primarily due to growth in the loan portfolio.
The Company’s allowance for loan and lease losses totaled $31.0 million at September 30, 2015. The allowance represented 0.97% of total originated loans at September 30, 2015, compared to 0.99% at year-end 2014. The allowance for loan and lease losses covered 133.18% of nonperforming loans and leases as of September 30, 2015, compared to 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 8.89% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.51%, up from 7.40% reported at December 31, 2014
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.
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 12/31/2014 | ||||||
| ASSETS | ||||||||
| Cash and noninterest bearing balances due from banks | $ | 105,074 | $ | 53,921 | ||||
| Interest bearing balances due from banks | 2,019 | 2,149 | ||||||
| Cash and Cash Equivalents | 107,093 | 56,070 | ||||||
| Trading securities, at fair value | 7,749 | 8,992 | ||||||
| Available-for-sale securities, at fair value (amortized cost of $1,378,138 at September 30, | ||||||||
| 2015 and $1,397,458 at December 31, 2014) | 1,388,283 | 1,402,236 | ||||||
| Held-to-maturity securities, at amortized cost (fair value of $149,112 at September 30, 2015 | ||||||||
| and $89,036 at December 31, 2014) | 146,300 | 88,168 | ||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,149,386 | 2,839,974 | ||||||
| Acquired loans and leases, covered (3) | 15,576 | 19,319 | ||||||
| Acquired loans and leases, non-covered (3) | 469,351 | 533,995 | ||||||
| Less: Allowance for loan and lease losses | 30,965 | 28,997 | ||||||
| Net Loans and Leases | 3,603,348 | 3,364,291 | ||||||
| FDIC indemnification asset | 334 | 1,903 | ||||||
| Federal Home Loan Bank stock | 23,562 | 21,259 | ||||||
| Bank premises and equipment, net | 60,060 | 59,800 | ||||||
| Corporate owned life insurance | 75,368 | 73,725 | ||||||
| Goodwill | 92,243 | 92,243 | ||||||
| Other intangible assets, net | 13,028 | 14,649 | ||||||
| Accrued interest and other assets | 77,350 | 86,225 | ||||||
| Total Assets | $ | 5,594,718 | $ | 5,269,561 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Interest bearing: | ||||||||
| Checking, savings and money market | 2,447,841 | 2,247,708 | ||||||
| Time | 877,422 | 898,081 | ||||||
| Noninterest bearing | 1,111,810 | 1,023,365 | ||||||
| Total Deposits | 4,437,073 | 4,169,154 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase | 134,941 | 147,037 | ||||||
| Other borrowings, including certain amounts at fair value of $10,736 at September 30, 2015 | ||||||||
| and $10,961 at December 31, 2014 | 398,946 | 356,541 | ||||||
| Trust preferred debentures | 37,466 | 37,337 | ||||||
| Other liabilities | 68,333 | 69,909 | ||||||
| Total Liabilities | $ | 5,076,759 | $ | 4,779,978 | ||||
| EQUITY | ||||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: | ||||||||
| 14,941,486 at September 30, 2015; and 14,931,354 at December 31, 2014 | 1,494 | 1,493 | ||||||
| Additional paid-in capital | 350,397 | 348,889 | ||||||
| Retained earnings | 190,175 | 165,160 | ||||||
| Accumulated other comprehensive loss | (22,028) | (24,011) | ||||||
| Treasury stock, at cost – 113,787 shares at September 30, 2015, and 111,436 shares | ||||||||
| at December 31, 2014 | (3,629) | (3,400) | ||||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 516,409 | 488,131 | ||||||
| Noncontrolling interests | 1,550 | 1,452 | ||||||
| Total Equity | $ | 517,959 | $ | 489,583 | ||||
| Total Liabilities and Equity | $ | 5,594,718 | $ | 5,269,561 | ||||
| TOMPKINS FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (In thousands, except per share data) (Unaudited) | 09/30/2015 | 09/30/2014 | 09/30/2015 | 09/30/2014 | ||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||
| Loans | $ | 39,235 | $ | 38,298 | $ | 114,670 | $ | 112,601 | ||||
| Due from banks | 1 | 0 | 3 | 2 | ||||||||
| Trading securities | 86 | 102 | 270 | 321 | ||||||||
| Available-for-sale securities | 7,031 | 7,718 | 22,219 | 23,637 | ||||||||
| Held-to-maturity securities | 915 | 288 | 2,185 | 626 | ||||||||
| Federal Home Loan Bank stock and Federal Reserve Bank stock | 262 | 212 | 834 | 616 | ||||||||
| Total Interest and Dividend Income | 47,530 | 46,618 | 140,181 | 137,803 | ||||||||
| INTEREST EXPENSE | ||||||||||||
| Time certificates of deposits of $250,000 or more | 369 | 387 | 1,058 | 1,022 | ||||||||
| Other deposits | 2,284 | 2,439 | 6,837 | 7,324 | ||||||||
| Federal funds purchased and securities sold under agreements to | ||||||||||||
| repurchase | 685 | 683 | 2,020 | 2,263 | ||||||||
| Trust preferred debentures | 583 | 573 | 1,726 | 1,714 | ||||||||
| Other borrowings | 1,223 | 961 | 3,596 | 3,362 | ||||||||
| Total Interest Expense | 5,144 | 5,043 | 15,237 | 15,685 | ||||||||
| Net Interest Income | 42,386 | 41,575 | 124,944 | 122,118 | ||||||||
| Less: Provision for loan and lease losses | 281 | (59) | 1,412 | 751 | ||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 42,105 | 41,634 | 123,532 | 121,367 | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Insurance commissions and fees | 7,564 | 7,520 | 22,341 | 21,823 | ||||||||
| Investment services income | 3,674 | 3,636 | 11,518 | 11,549 | ||||||||
| Service charges on deposit accounts | 2,410 | 2,506 | 6,812 | 7,010 | ||||||||
| Card services income | 2,001 | 1,936 | 5,844 | 5,968 | ||||||||
| Mark-to-market loss on trading securities | (69) | (87) | (206) | (181) | ||||||||
| Mark-to-market gain on liabilities held at fair value | 81 | 132 | 226 | 260 | ||||||||
| Other income | 1,669 | 1,892 | 6,390 | 6,129 | ||||||||
| Gain on sale of available-for-sale securities | 92 | 20 | 1,105 | 151 | ||||||||
| Total Noninterest Income | 17,422 | 17,555 | 54,030 | 52,709 | ||||||||
| NONINTEREST EXPENSES | ||||||||||||
| Salaries and wages | 18,357 | 17,553 | 54,319 | 51,859 | ||||||||
| Pension and other employee benefits | 5,368 | 4,941 | 10,843 | 15,964 | ||||||||
| Net occupancy expense of premises | 2,891 | 2,969 | 9,303 | 9,296 | ||||||||
| Furniture and fixture expense | 1,532 | 1,451 | 4,465 | 4,247 | ||||||||
| FDIC insurance | 729 | 682 | 2,218 | 2,228 | ||||||||
| Amortization of intangible assets | 496 | 518 | 1,503 | 1,570 | ||||||||
| Other operating expense | 8,509 | 10,423 | 27,841 | 30,511 | ||||||||
| Total Noninterest Expenses | 37,882 | 38,537 | 110,492 | 115,675 | ||||||||
| Income Before Income Tax Expense | 21,645 | 20,652 | 67,070 | 58,401 | ||||||||
| Income Tax Expense | 7,115 | 6,897 | 22,405 | 18,951 | ||||||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 14,530 | 13,755 | 44,665 | 39,450 | ||||||||
| Less: Net income attributable to noncontrolling interests | 33 | 33 | 98 | 98 | ||||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 14,497 | $ | 13,722 | $ | 44,567 | $ | 39,352 | ||||
| Basic Earnings Per Share | $ | 0.97 | $ | 0.92 | $ | 2.98 | $ | 2.65 | ||||
| Diluted Earnings Per Share | $ | 0.96 | $ | 0.92 | $ | 2.96 | $ | 2.64 | ||||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | |||||||||||||||||||||||||||||||||||
Quarter Ended | Year to Date Period Ended September 30, 2015 | Year to Date Period Ended September 30, 2014 | |||||||||||||||||||||||||||||||||
Average |
Average |
Average |
Average |
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Average Interest Yield/Rate | ||||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 1,957 | $ | 1 | 0.20% | $ | 1,725 | $ | 3 | 0.23% | $ | 782 | $ | 2 | 0.34% | ||||||||||||||||||||
| Securities (4) | |||||||||||||||||||||||||||||||||||
| U.S. Government securities | 1,438,436 | 7,439 | 2.05% | 1,441,360 | 22,807 | 2.12% | 1,304,141 | 22,163 | 2.27% | ||||||||||||||||||||||||||
| Trading securities | 8,008 | 86 | 4.26% | 8,437 | 270 | 4.28% | 10,327 | 321 | 4.16% | ||||||||||||||||||||||||||
| State and municipal (5) | 85,554 | 783 | 3.63% | 86,846 | 2,486 | 3.83% | 96,992 | 3,157 | 4.35% | ||||||||||||||||||||||||||
| Other securities (5) | 3,705 | 31 | 3.32% | 3,740 | 91 | 3.25% | 4,571 | 107 | 3.13% | ||||||||||||||||||||||||||
| Total securities | 1,535,703 | 8,339 | 2.15% | 1,540,383 | 25,654 | 2.23% | 1,416,031 | 25,748 | 2.43% | ||||||||||||||||||||||||||
| FHLBNY and FRB stock | 26,556 | 263 | 3.93% | 23,771 | 834 | 4.69% | 20,192 | 616 | 4.08% | ||||||||||||||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 3,574,449 | 39,913 | 4.43% | 3,479,528 | 116,547 | 4.48% | 3,218,371 | 113,924 | 4.73% | ||||||||||||||||||||||||||
| Total interest-earning assets | 5,138,665 | 48,516 | 3.75% | 5,045,407 | 143,038 | 3.79% | 4,655,376 | 140,290 | 4.03% | ||||||||||||||||||||||||||
| Other assets | 347,980 | 352,808 | 368,584 | ||||||||||||||||||||||||||||||||
| Total assets | 5,486,645 | 5,398,215 | 5,023,960 | ||||||||||||||||||||||||||||||||
| LIABILITIES & EQUITY | |||||||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,322,974 | 949 | 0.16% | 2,332,674 | 2,863 | 0.16% | 2,265,787 | 3,276 | 0.19% | ||||||||||||||||||||||||||
| Time deposits | 890,933 | 1,704 | 0.76% | 904,911 | 5,032 | 0.74% | 901,283 | 5,070 | 0.75% | ||||||||||||||||||||||||||
| Total interest-bearing deposits | 3,213,907 | 2,653 | 0.33% | 3,237,585 | 7,895 | 0.33% | 3,167,070 | 8,346 | 0.35% | ||||||||||||||||||||||||||
| Federal funds purchased & securities sold under | |||||||||||||||||||||||||||||||||||
| agreements to repurchase | 134,620 | 685 | 2.02% | 136,073 | 2,020 | 1.98% | 147,775 | 2,263 | 2.05% | ||||||||||||||||||||||||||
| Other borrowings | 470,060 | 1,223 | 1.03% | 413,819 | 3,596 | 1.16% | 258,578 | 3,362 | 1.74% | ||||||||||||||||||||||||||
| Trust preferred debentures | 37,438 | 583 | 6.18% | 37,395 | 1,726 | 6.17% | 37,227 | 1,714 | 6.16% | ||||||||||||||||||||||||||
| Total interest-bearing liabilities | 3,856,025 | 5,144 | 0.53% | 3,824,872 | 15,237 | 0.53% | 3,610,650 | 15,685 | 0.58% | ||||||||||||||||||||||||||
| Noninterest bearing deposits | 1,052,669 | 1,003,318 | 879,691 | ||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 68,433 | 65,902 | 54,040 | ||||||||||||||||||||||||||||||||
| Total liabilities | 4,977,127 | 4,894,092 | 4,544,381 | ||||||||||||||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 507,984 | 502,622 | 478,078 | ||||||||||||||||||||||||||||||||
| Noncontrolling interest | 1,534 | 1,501 | 1,501 | ||||||||||||||||||||||||||||||||
| Total equity | 509,518 | 504,123 | 479,579 | ||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 5,486,645 | $ | 5,398,215 | $ | 5,023,960 | |||||||||||||||||||||||||||||
| Interest rate spread | 3.22% | 3.26% | 3.45% | ||||||||||||||||||||||||||||||||
| Net interest income/margin on earning assets | 43,373 | 3.35% | 127,801 | 3.39% | 124,605 | 3.58% | |||||||||||||||||||||||||||||
| Tax Equivalent Adjustment | (987) | (2,857) | (2,487) | ||||||||||||||||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 42,386 | $ | 124,944 | $ | 122,118 | |||||||||||||||||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) | ||||||||||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||||||||||||||||
| Sep-15 | Jun-15 | Mar-15 | Dec-14 | Sep-14 | Dec-14 | |||||||||||||||||||||
| Period End Balance Sheet | ||||||||||||||||||||||||||
| Securities | $ | 1,542,332 | $ | 1,536,374 | $ | 1,555,597 | $ | 1,499,396 | $ | 1,431,837 | $ | 1,499,396 | ||||||||||||||
Originated loans and leases, net of unearned income | 3,149,386 | 3,013,968 | 2,898,533 | 2,839,974 | 2,674,971 | 2,839,974 | ||||||||||||||||||||
| Acquired loans and leases (3) | 484,927 | 507,963 | 529,024 | 553,314 | 582,498 | 553,314 | ||||||||||||||||||||
| Allowance for loan and lease losses | 30,965 | 30,091 | 29,485 | 28,997 | 27,786 | 28,997 | ||||||||||||||||||||
| Total assets | 5,594,718 | 5,436,136 | 5,357,533 | 5,269,561 | 5,090,919 | 5,269,561 | ||||||||||||||||||||
| Total deposits | 4,437,073 | 4,204,089 | 4,282,766 | 4,169,154 | 4,212,860 | 4,169,154 | ||||||||||||||||||||
Federal funds purchased and securities sold under | 134,941 | 131,063 | 135,769 | 147,037 | 128,368 | 147,037 | ||||||||||||||||||||
| Other borrowings | 398,946 | 493,326 | 330,850 | 356,541 | 166,509 | 356,541 | ||||||||||||||||||||
| Trust preferred debentures | 37,466 | 37,423 | 37,380 | 37,337 | 37,298 | 37,337 | ||||||||||||||||||||
| Total common equity | 516,409 | 503,877 | 502,811 | 488,131 | 489,061 | 488,131 | ||||||||||||||||||||
| Total equity | 517,959 | 505,394 | 504,296 | 489,583 | 490,611 | 489,583 | ||||||||||||||||||||
| Average Balance Sheet | ||||||||||||||||||||||||||
| Average earning assets | $ | 5,138,665 | $ | 5,038,586 | $ | 4,956,972 | $ | 4,799,027 | $ | 4,695,860 | $ | 4,691,582 | ||||||||||||||
| Average assets | 5,486,645 | 5,391,114 | 5,315,002 | 5,193,347 | 5,058,608 | 5,066,655 | ||||||||||||||||||||
| Average interest-bearing liabilities | 3,856,025 | 3,835,430 | 3,782,355 | 3,668,311 | 3,587,673 | 3,625,184 | ||||||||||||||||||||
| Average equity | 509,518 | 505,667 | 497,047 | 495,531 | 489,920 | 483,599 | ||||||||||||||||||||
| Share data | ||||||||||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,739,915 | 14,751,844 | 14,701,397 | 14,639,631 | 14,711,709 | 14,676,622 | ||||||||||||||||||||
| Weighted average shares outstanding (diluted) | 14,866,735 | 14,878,107 | 14,837,935 | 14,765,855 | 14,795,343 | 14,789,624 | ||||||||||||||||||||
| Period-end shares outstanding | 14,905,576 | 14,942,107 | 14,962,079 | 14,895,444 | 14,794,092 | 14,895,444 | ||||||||||||||||||||
| Common equity book value per share | $ | 34.65 | $ | 33.72 | $ | 33.61 | $ | 32.77 | $ | 33.06 | $ | 32.77 | ||||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 27.64 | $ | 26.71 | $ | 26.56 | $ | 25.66 | $ | 25.87 | $ | 25.66 | ||||||||||||||
| Income Statement | ||||||||||||||||||||||||||
| Net interest income | $ | 42,386 | $ | 41,330 | $ | 41,228 | $ | 41,692 | $ | 41,575 | $ | 163,810 | ||||||||||||||
| Provision (Credit) for loan/lease losses | 281 | 922 | 209 | 1,555 | (59) | 2,306 | ||||||||||||||||||||
| Noninterest income | 17,422 | 18,962 | 17,646 | 18,056 | 17,555 | 70,765 | ||||||||||||||||||||
| Noninterest expense | 37,882 | 32,918 | 39,692 | 39,018 | 38,537 | 154,693 | ||||||||||||||||||||
| Income tax expense | 7,115 | 9,030 | 6,260 | 6,453 | 6,897 | 25,404 | ||||||||||||||||||||
| Net income attributable to Tompkins Financial Corporation | 14,497 | 17,390 | 12,680 | 12,689 | 13,722 | 52,041 | ||||||||||||||||||||
| Noncontrolling interests | 33 | 32 | 33 | 33 | 33 | 131 | ||||||||||||||||||||
| Basic earnings per share (9) | $ | 0.97 | $ | 1.16 | $ | 0.85 | $ | 0.86 | $ | 0.92 | $ | 3.51 | ||||||||||||||
| Diluted earnings per share (9) | $ | 0.96 | $ | 1.15 | $ | 0.84 | $ | 0.85 | $ | 0.92 | $ | 3.48 | ||||||||||||||
| Nonperforming Assets | ||||||||||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 14,821 | $ | 14,566 | $ | 13,811 | $ | 14,299 | $ | 16,319 | $ | 14,299 | ||||||||||||||
| Acquired nonaccrual loans and leases | 4,908 | 5,030 | 4,683 | 4,729 | 4,998 | 4,729 | ||||||||||||||||||||
| Originated loans and leases 90 days past due and accruing | 57 | 58 | 236 | 106 | 395 | 106 | ||||||||||||||||||||
| Troubled debt restructurings not included above | 3,465 | 1,939 | 1,589 | 3,444 | 3,800 | 3,444 | ||||||||||||||||||||
| Total nonperforming loans and leases | 23,251 | 21,593 | 20,319 | 22,578 | 25,512 | 22,578 | ||||||||||||||||||||
| OREO (8) | 3,188 | 2,570 | 5,816 | 5,683 | 6,533 | 5,683 | ||||||||||||||||||||
| Total nonperforming assets | $ | 26,439 | $ | 24,163 | $ | 26,135 | $ | 28,261 | $ | 32,045 | $ | 28,261 | ||||||||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||||||||||
| Delinquency - Originated loan and lease portfolio | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Sep-14 | Dec-14 | ||||||||||||||||||||
| Loans and leases 30-89 days past due and | ||||||||||||||||||||||||||
| accruing (2) | $ | 3,550 | $ | 3,315 | $ | 2,438 | $ | 6,849 | $ | 3,811 | $ | 6,849 | ||||||||||||||
| Loans and leases 90 days past due and accruing (2) | 57 | 58 | 236 | 106 | 395 | 106 | ||||||||||||||||||||
| Total originated loans and leases past due and accruing (2) | 3,607 | 3,373 | 2,674 | 6,955 | 4,206 | 6,955 | ||||||||||||||||||||
| Delinquency - Acquired loan and lease portfolio | ||||||||||||||||||||||||||
| Covered loans and leases 30-89 days past due and accruing (3)(7) | $ | 309 | $ | 455 | $ | 547 | $ | 533 | $ | 0 | $ | 533 | ||||||||||||||
| Covered loans and leases 90 days or more past | ||||||||||||||||||||||||||
| due and accruing (3)(7) | 508 | 674 | 682 | 914 | 1,149 | 914 | ||||||||||||||||||||
| Non-covered loans and leases 30-89 days past | ||||||||||||||||||||||||||
| due and accruing (3)(7) | 1,028 | 917 | 2,546 | 1,186 | 736 | 1,186 | ||||||||||||||||||||
| Non-covered loans and leases 90 days past | ||||||||||||||||||||||||||
| due and accruing (3)(7) | 2,069 | 3,031 | 2,811 | 2,614 | 3,171 | 2,614 | ||||||||||||||||||||
| Total acquired loans and leases past due and accruing | 3,914 | 5,077 | 6,586 | 5,247 | 5,056 | 5,247 | ||||||||||||||||||||
| Total loans and leases past due and accruing | $ | 7,521 | $ | 8,450 | $ | 9,260 | $ | 12,202 | $ | 9,262 | $ | 12,202 | ||||||||||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 29,428 | $ | 28,690 | $ | 28,156 | $ | 27,185 | $ | 26,752 | $ | 26,700 | ||||||||||||||
| Provision (Credit) for loan and lease losses | 173 | 769 | 340 | 1,102 | (264) | 1,293 | ||||||||||||||||||||
| Net loan and lease charge-offs (recoveries) | (849) | 31 | (194) | 131 | (697) | (163) | ||||||||||||||||||||
| Allowance for loan and lease losses (originated | 30,450 | 29,428 | 28,690 | 28,156 | 27,185 | 28,156 | ||||||||||||||||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 663 | $ | 795 | $ | 841 | $ | 601 | $ | 765 | $ | 1,270 | ||||||||||||||
| Provision (Credit) for loan and lease losses | 108 | 153 | (131) | 453 | 205 | 1,013 | ||||||||||||||||||||
| Net loan and lease charge-offs (recoveries) | 256 | 285 | (85) | 213 | 369 | 1,442 | ||||||||||||||||||||
| Allowance for loan and lease losses (acquired | ||||||||||||||||||||||||||
| loan portfolio) - balance at end of period | 515 | 663 | 795 | 841 | 601 | 841 | ||||||||||||||||||||
| Total allowance for loan and lease losses | $ | 30,965 | $ | 30,091 | $ | 29,485 | $ | 28,997 | $ | 27,786 | $ | 28,997 | ||||||||||||||
| Loan Classification - Originated Portfolio | ||||||||||||||||||||||||||
| Special Mention | $ | 25,133 | $ | 25,706 | $ | 34,965 | $ | 36,331 | $ | 27,854 | $ | 36,331 | ||||||||||||||
| Substandard | 19,937 | 21,600 | 19,150 | 19,970 | 25,889 | 19,970 | ||||||||||||||||||||
| Loan Classification - Acquired Portfolio | ||||||||||||||||||||||||||
| Special Mention | 1,446 | 1,589 | 5,053 | 5,758 | 7,605 | 5,758 | ||||||||||||||||||||
| Substandard | 23,683 | 21,932 | 21,752 | 21,567 | 24,034 | 21,567 | ||||||||||||||||||||
| Loan Classifications - Total Portfolio | ||||||||||||||||||||||||||
| Special Mention | 26,579 | 27,295 | 40,018 | 42,089 | 35,459 | 42,089 | ||||||||||||||||||||
| Substandard | 43,620 | 43,532 | 40,902 | 41,537 | 49,923 | 41,537 | ||||||||||||||||||||
| RATIO ANALYSIS | Quarter-Ended | Year-Ended | ||||||||||||||||||||||||
| Credit Quality | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Sep-14 | Dec-14 | ||||||||||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.64% | 0.61% | 0.59% | 0.67% | 0.78% | 0.67% | ||||||||||||||||||||
| Nonperforming assets/total assets | 0.47% | 0.44% | 0.49% | 0.54% | 0.63% | 0.54% | ||||||||||||||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.97% | 0.98% | 0.99% | 0.99% | 1.02% | 0.99% | ||||||||||||||||||||
| Allowance/nonperforming loans and leases | 133.18% | 139.36% | 145.11% | 128.43% | 108.92% | 128.43% | ||||||||||||||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | (0.07%) | 0.04% | (0.03%) | 0.04% | (0.04%) | 0.04% | ||||||||||||||||||||
| Capital Adequacy (period-end) | ||||||||||||||||||||||||||
| Tier 1 capital / average assets * | 8.89% | 8.92% | 8.85% | 8.75% | 8.85% | 8.75% | ||||||||||||||||||||
| Total capital / risk-weighted assets * | 13.29% | 13.46% | 13.37% | 13.60% | 13.92% | 13.60% | ||||||||||||||||||||
| *Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework | ||||||||||||||||||||||||||
| Profitability | ||||||||||||||||||||||||||
| Return on average assets * | 1.05% | 1.29% | 0.97% | 0.97% | 1.08% | 1.03% | ||||||||||||||||||||
| Return on average equity * | 11.29% | 13.79% | 10.35% | 10.16% | 11.11% | 10.76% | ||||||||||||||||||||
| Net interest margin (TE) * | 3.35% | 3.37% | 3.45% | 3.53% | 3.58% | 3.57% | ||||||||||||||||||||
| * Quarterly ratios have been annualized | ||||||||||||||||||||||||||
| Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share | ||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 14,497 | $ | 17,390 | $ | 12,680 | $ | 12,689 | $ | 13,722 | $ | 52,041 | ||||||||||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 189 | 234 | 182 | 150 | 119 | 503 | ||||||||||||||||||||
| Adjusted net income available to common shareholders | 14,308 | 17,156 | 12,498 | 12,539 | 13,603 | 51,538 | ||||||||||||||||||||
| Gain on pension plan curtailment (net of tax) | 0 | (3,602) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
| Net operating income (Non-GAAP) | 14,308 | 13,554 | 12,498 | 12,539 | 13,603 | 51,538 | ||||||||||||||||||||
| Weighted average shares outstanding (diluted) | 14,866,735 | 14,878,107 | 14,837,935 | 14,765,855 | 14,795,343 | 14,789,624 | ||||||||||||||||||||
| Adjusted diluted earnings per share (Non-GAAP) (9) | $ | 0.96 | $ | 0.91 | $ | 0.84 | $ | 0.85 | $ | 0.92 | $ | 3.48 | ||||||||||||||
| Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets | ||||||||||||||||||||||||||
| Total Common equity | $ | 516,409 | $ | 503,877 | $ | 502,811 | $ | 488,131 | $ | 489,061 | $ | 488,131 | ||||||||||||||
| Less: Goodwill and intangibles (10) | 104,349 | 104,845 | 105,344 | 105,852 | 106,377 | 105,852 | ||||||||||||||||||||
| Tangible common equity | 412,060 | 399,032 | 397,467 | 382,279 | 382,684 | 382,279 | ||||||||||||||||||||
| Total assets | 5,594,718 | 5,436,136 | 5,357,533 | 5,269,561 | 5,090,919 | 5,269,561 | ||||||||||||||||||||
| Less: Goodwill and intangibles (10) | 104,349 | 104,845 | 105,344 | 105,852 | 106,377 | 105,852 | ||||||||||||||||||||
| Tangible assets | 5,490,369 | 5,331,291 | 5,252,189 | 5,163,709 | 4,984,542 | 5,163,709 | ||||||||||||||||||||
| Tangible common equity / tangible assets (Non-GAAP) | 7.51% | 7.48% | 7.57% | 7.40% | 7.68% | 7.40% | ||||||||||||||||||||
| Non-GAAP Disclosure - Return on Average | Quarter-Ended | Year-Ended | ||||||||||||||||||||||||
| Tangible Common Equity | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Sep-14 | Dec-14 | ||||||||||||||||||||
| Net income available to common shareholders | $ | 14,497 | $ | 17,390 | $ | 12,680 | $ | 12,689 | $ | 13,722 | $ | 52,041 | ||||||||||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 189 | 234 | 182 | 150 | 119 | 503 | ||||||||||||||||||||
| Adjusted net income available to common shareholders | 14,308 | 17,156 | 12,498 | 12,539 | 13,603 | 51,538 | ||||||||||||||||||||
| Gain on pension plan curtailment (net of tax) | 0 | (3,602) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
| Net operating income (Non-GAAP) | 14,308 | 13,554 | 12,498 | 12,539 | 13,603 | 51,538 | ||||||||||||||||||||
| Amortization of intangibles (net of tax) | 298 | 300 | 304 | 315 | 311 | 1,257 | ||||||||||||||||||||
| Adjusted net operating income (Non-GAAP) | 14,606 | 13,854 | 12,802 | 12,854 | 13,914 | 52,795 | ||||||||||||||||||||
| Average common equity | 507,984 | 504,166 | 495,579 | 493,986 | 488,386 | 482,087 | ||||||||||||||||||||
| Less: Average goodwill and intangibles (10) | 104,633 | 105,130 | 105,644 | 106,151 | 106,471 | 106,748 | ||||||||||||||||||||
| Average tangible common equity capital | 403,351 | 399,036 | 389,935 | 387,835 | 381,915 | 375,339 | ||||||||||||||||||||
| Adjusted operating return on average tangible common equity (annualized) (Non-GAAP) | 14.37% | 13.93% | 13.32% | 13.15% | 14.46% | 14.07% | ||||||||||||||||||||
Non-GAAP Disclosure - Tangible Book Value Per Share | ||||||||||||||||||||||||||
Total common equity | $ | 516,409 | $ | 503,877 | $ | 502,811 | $ | 488,131 | $ | 489,061 | $ | 488,131 | ||||||||||||||
Less: Goodwill and intangibles (10) | 104,349 | 104,845 | 105,344 | 105,852 | 106,377 | 105,852 | ||||||||||||||||||||
Tangible common equity | 412,060 | 399,032 | 397,467 | 382,279 | 382,684 | 382,279 | ||||||||||||||||||||
Ending shares outstanding | 14,905,576 | 14,942,107 | 14,962,079 | 14,895,444 | 14,794,092 | 14,895,444 | ||||||||||||||||||||
Tangible book value per share (Non-GAAP) | $ | 27.64 | 26.71 | 26.56 | 25.66 | 25.87 | $ | 25.66 | ||||||||||||||||||
| Non-GAAP Disclosure - YTD adjusted diluted earnings per share | ||||||||||
| Sep-15 | Sep-14 | |||||||||
| Net income available to common shareholders | $ | 44,567 | $ | 39,352 | ||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 609 | 353 | ||||||||
| Adjusted net income available to common shareholders | 43,958 | 38,999 | ||||||||
| Gain on pension plan curtailment | (3,602) | 0 | ||||||||
| Net operating income (Non-GAAP) | 40,356 | 38,999 | ||||||||
| Weighted average shares outstanding (diluted) | 14,861,003 | 14,797,520 | ||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 2.72 | $ | 2.64 | ||||||
(1) | Federal Reserve peer ratio as of June 30, 2015, 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. | |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151030005114/en/
Contacts:
Stephen S. Romaine, 888-503-5753
President
& CEO
or
Francis M. Fetsko, 888-503-5753
Executive
VP, CFO & COO
