Tompkins Financial Corporation (NYSEMKT:TMP)
Tompkins Financial Corporation reported record diluted earnings per share of $3.87 for the year ended December 31, 2015, up 11.2% from $3.48 per share reported for the year ended December 31, 2014. The Company reported diluted earnings per share of $0.92 for the fourth quarter of 2015, an increase of 8.2% from the $0.85 reported for the fourth quarter of 2014.
Year-to-date results in 2015 included a non-recurring income item, which is more fully described in the non-GAAP disclosure tables included in this press release. Excluding this non-recurring item, diluted earnings per share for the year-to-date period ended December 31, 2015 reflected an increase of 4.3%.
President and CEO, Stephen S. Romaine said "We are pleased to report on continued strong earnings performance for the current quarter and annual periods. 2015 was our third consecutive year of record earnings. Strong growth in the loan portfolio was a key driver of our success during the current year, which helped offset the negative impact of a declining net interest margin.”
SELECTED HIGHLIGHTS FOR FOURTH QUARTER:
- Year end loan balances were up 11.2% over December 31, 2014, and are up 3.8% over the most recent prior quarter end.
- Noninterest-bearing deposits were up 11.3% compared to prior year-end, and up 2.4% compared to the most recent prior quarter.
- Credit quality continues to improve with nonperforming assets down 13.3% compared to the fourth quarter of 2014, and down 7.3% compared to third quarter of 2015.
- Criticized and Classified loan balances were down 33.8% from the fourth quarter of 2014, and down 21.1% compared to third quarter of 2015.
- Net interest income for the fourth quarter of 2015 was up 4.2% compared to fourth quarter of 2014, and up 2.5% compared to the most recent prior quarter.
- Tangible book value per share increased 7.1% from the fourth quarter of 2014, and was down 0.6% from the most recent prior quarter. Refer to Non-GAAP disclosure for additional details on tangible book value per share.
NET INTEREST INCOME
Net interest income of $43.4 million for the fourth quarter of 2015 reflected an increase of 2.5% when compared to the most recent prior quarter end, and an increase of 4.2% when compared to the same period in 2014. Year-to-date net interest income of $168.4 million was up 2.8% compared to the same period in 2014. Growth in loans helped offset the decline in the net interest margin, which was 3.35% for the fourth quarter 2015 and prior quarter, and 3.53% for the fourth quarter 2014.
Average loan balances for the year ended December 31, 2015, were up 9.0%, and average deposit balances were up 4.7% compared to average balances for the year ended December 31, 2014.
NONINTEREST INCOME
Noninterest income represented 29.9% of total revenues for the year ended December 31, 2015, compared to 30.2% in 2014. Noninterest income was $17.9 million for the fourth quarter of 2015, and $71.9 million year-to-date, down 0.8% and up 1.7%, respectively, when compared to the same periods last year. Contributing to the year-to-date growth were an increase in insurance revenue of $797,000, an increase in net gains on the sale of securities of $717,000, and an increase in net gains on the sale of other real estate owned of $355,000.
NONINTEREST EXPENSE
Noninterest expense was $39.4 million for the fourth quarter of 2015, which was in line with the same period last year. Year-to-date noninterest expense of $149.9 million was down 3.1% compared to the year-to-date period in 2014. Year-to-date results included a $6.0 million gain on a pension plan curtailment recorded in the second 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 remained strong in the fourth quarter of 2015. Fourth quarter nonperforming assets were down 13.3% compared to same period in 2014, and down 7.3% compared to the most recent prior quarter end. Nonperforming assets represented 0.43% of total assets at December 31, 2015, down from 0.47% at the prior quarter end, and 0.54% at the prior year end. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.97%. Substandard and Special Mention loan balances decreased by 32.3% compared to year end 2014, and by 19.3% compared to the most recent prior quarter.
Provision for loan and lease losses was $1.5 million for the current quarter, and $2.9 million for the full year ended December 31, 2015, compared to $1.6 million and $2.3 million for the respective periods in 2014. The year-over-year increase in provision expense is primarily due to growth in the loan portfolio.
The Company’s allowance for originated loan and lease losses increased to $31.3 million at December 31, 2015, up from $28.2 million at December 31, 2014. This increase in the allowance is mainly due to loan growth and is partially offset by improved asset quality. This allowance represented 0.95% of originated loans and leases at December 31, 2015, compared to 0.99% a year earlier. The total allowance represented 146.74% of total nonperforming loans and leases at December 31, 2015, up from 128.4% at December 31, 2014.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.82% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) of 7.37% was in line with the 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 | |||||||
| (In thousands, except share and per share data) (Unaudited) | As of | As of | |||||
| ASSETS | 12/31/2015 | 12/31/2014 | |||||
| Cash and noninterest bearing balances due from banks | $ | 56,261 | $ | 53,921 | |||
| Interest bearing balances due from banks | 1,996 | 2,149 | |||||
| Cash and Cash Equivalents | 58,257 | 56,070 | |||||
| Trading securities, at fair value | 7,368 | 8,992 | |||||
| Available-for-sale securities, at fair value (amortized cost of $1,390,255 at December 31, | |||||||
| 2015 and $1,397,458 at December 31, 2014) | 1,385,684 | 1,402,236 | |||||
| Held-to-maturity securities, at amortized cost (fair value of $146,686 at December 31, 2015 | |||||||
| and $89,036 at December 31, 2014) | 146,071 | 88,168 | |||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,310,768 | 2,839,974 | |||||
| Acquired loans and leases, covered (3) | 14,031 | 19,319 | |||||
| Acquired loans and leases, non-covered (3) | 447,243 | 533,995 | |||||
| Less: Allowance for loan and lease losses | 32,004 | 28,997 | |||||
| Net Loans and Leases | 3,740,038 | 3,364,291 | |||||
| FDIC indemnification asset | 158 | 1,903 | |||||
| Federal Home Loan Bank stock | 29,969 | 21,259 | |||||
| Bank premises and equipment, net | 60,331 | 59,800 | |||||
| Corporate owned life insurance | 75,792 | 73,725 | |||||
| Goodwill | 91,792 | 92,243 | |||||
| Other intangible assets, net | 12,448 | 14,649 | |||||
| Accrued interest and other assets | 82,087 | 86,225 | |||||
| Total Assets | $ | 5,689,995 | $ | 5,269,561 | |||
| LIABILITIES | |||||||
| Deposits: | |||||||
| Interest bearing: | |||||||
| Checking, savings and money market | 2,401,519 | 2,247,708 | |||||
| Time | 855,133 | 898,081 | |||||
| Noninterest bearing | 1,138,654 | 1,023,365 | |||||
| Total Deposits | 4,395,306 | 4,169,154 | |||||
| Federal funds purchased and securities sold under agreements to repurchase | 136,513 | 147,037 | |||||
| Other borrowings, including certain amounts at fair value of $10,576 at December 31, 2015 | |||||||
| and $10,961 at December 31, 2014 | 536,285 | 356,541 | |||||
| Trust preferred debentures | 37,509 | 37,337 | |||||
| Other liabilities | 67,916 | 69,909 | |||||
| Total Liabilities | $ | 5,173,529 | $ | 4,779,978 | |||
| EQUITY | |||||||
| Tompkins Financial Corporation shareholders' equity: | |||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: | |||||||
| 15,015,594 at December 31, 2015; and 14,931,354 at December 31, 2014 | 1,502 | 1,493 | |||||
| Additional paid-in capital | 350,823 | 348,889 | |||||
| Retained earnings | 197,445 | 165,160 | |||||
| Accumulated other comprehensive loss | (31,001) | (24,011) | |||||
| Treasury stock, at cost – 113,787 shares at December 31, 2015, and 111,436 shares | |||||||
| at December 31, 2014 | (3,755) | (3,400) | |||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 515,014 | 488,131 | |||||
| Noncontrolling interests | 1,452 | 1,452 | |||||
| Total Equity | $ | 516,466 | $ | 489,583 | |||
| Total Liabilities and Equity | $ | 5,689,995 | $ | 5,269,561 | |||
TOMPKINS FINANCIAL CORPORATION | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| (In thousands, except per share data) (Unaudited) | 12/31/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | |||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||
| Loans | $ | 39,966 | $ | 38,366 | $ | 154,636 | $ | 150,966 | |||||
| Due from banks | 1 | 0 | 4 | 2 | |||||||||
| Trading securities | 82 | 97 | 352 | 418 | |||||||||
| Available-for-sale securities | 7,306 | 7,661 | 29,525 | 31,298 | |||||||||
| Held-to-maturity securities | 915 | 373 | 3,100 | 999 | |||||||||
| Federal Home Loan Bank stock and Federal Reserve Bank stock | 295 | 194 | 1,129 | 810 | |||||||||
| Total Interest and Dividend Income | 48,565 | 46,691 | 188,746 | 184,493 | |||||||||
| INTEREST EXPENSE | |||||||||||||
| Time certificates of deposits of $250,000 or more | 309 | 348 | 1,367 | 1,370 | |||||||||
| Other deposits | 2,247 | 2,388 | 9,084 | 9,711 | |||||||||
| Federal funds purchased and securities sold under agreements to | |||||||||||||
| repurchase | 689 | 684 | 2,709 | 2,947 | |||||||||
| Trust preferred debentures | 582 | 573 | 2,308 | 2,287 | |||||||||
| Other borrowings | 1,301 | 1,006 | 4,897 | 4,368 | |||||||||
| Total Interest Expense | 5,128 | 4,999 | 20,365 | 20,683 | |||||||||
| Net Interest Income | 43,437 | 41,692 | 168,381 | 163,810 | |||||||||
| Less: Provision for loan and lease losses | 1,533 | 1,555 | 2,945 | 2,306 | |||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 41,904 | 40,137 | 165,436 | 161,504 | |||||||||
| NONINTEREST INCOME | |||||||||||||
| Insurance commissions and fees | 6,945 | 6,666 | 29,286 | 28,489 | |||||||||
| Investment services income | 3,898 | 3,945 | 15,416 | 15,493 | |||||||||
| Service charges on deposit accounts | 2,513 | 2,394 | 9,325 | 9,404 | |||||||||
| Card services income | 1,993 | 1,974 | 7,837 | 7,942 | |||||||||
| Mark-to-market loss on trading securities | (89) | (89) | (295) | (269) | |||||||||
| Mark-to-market gain on liabilities held at fair value | 159 | 71 | 385 | 331 | |||||||||
| Other income | 2,488 | 2,854 | 8,878 | 8,984 | |||||||||
| Gain on sale of available-for-sale securities | 3 | 241 | 1,108 | 391 | |||||||||
| Total Noninterest Income | 17,910 | 18,056 | 71,940 | 70,765 | |||||||||
| NONINTEREST EXPENSES | |||||||||||||
| Salaries and wages | 18,388 | 17,699 | 72,707 | 69,558 | |||||||||
| Pension and other employee benefits | 5,182 | 5,138 | 16,025 | 21,102 | |||||||||
| Net occupancy expense of premises | 3,009 | 2,908 | 12,312 | 12,203 | |||||||||
| Furniture and fixture expense | 1,681 | 1,461 | 6,146 | 5,708 | |||||||||
| FDIC insurance | 774 | 678 | 2,992 | 2,906 | |||||||||
| Amortization of intangible assets | 510 | 525 | 2,013 | 2,095 | |||||||||
| Other operating expense | 9,826 | 10,609 | 37,667 | 41,121 | |||||||||
| Total Noninterest Expenses | 39,370 | 39,018 | 149,862 | 154,693 | |||||||||
| Income Before Income Tax Expense | 20,444 | 19,175 | 87,514 | 77,576 | |||||||||
| Income Tax Expense | 6,557 | 6,453 | 28,962 | 25,404 | |||||||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 13,887 | 12,722 | 58,552 | 52,172 | |||||||||
| Less: Net income attributable to noncontrolling interests | 33 | 33 | 131 | 131 | |||||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 13,854 | $ | 12,689 | $ | 58,421 | $ | 52,041 | |||||
| Basic Earnings Per Share | $ | 0.93 | $ | 0.86 | $ | 3.91 | $ | 3.51 | |||||
| Diluted Earnings Per Share | $ | 0.92 | $ | 0.85 | $ | 3.87 | $ | 3.48 | |||||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||||||||||
| Quarter Ended | Year to Date Period Ended | Year to Date Period Ended | ||||||||||||||||||||||
| December 31, 2015 | December 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
| Average | Average | Average | ||||||||||||||||||||||
| Balance | Average | Balance | Average | Balance | Average | |||||||||||||||||||
| (Dollar amounts in thousands) | (QTD) | Interest | Yield/Rate | (YTD) | Interest | Yield/Rate | (YTD) | Interest | Yield/Rate | |||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 2,070 | $ | 1 | 0.19% | $ | 1,812 | $ | 4 | 0.22% | $ | 1,014 | $ | 2 | 0.20% | |||||||||
| Securities (4) | ||||||||||||||||||||||||
| U.S. Government securities | 1,441,597 | 7,693 | 2.12% | 1,441,420 | 30,500 | 2.12% | 1,332,449 | 30,384 | 2.28% | |||||||||||||||
| Trading securities | 7,621 | 82 | 4.32% | 8,231 | 352 | 4.28% | 10,068 | 418 | 4.15% | |||||||||||||||
| State and municipal (5) | 93,425 | 823 | 3.49% | 88,504 | 3,308 | 3.74% | 85,402 | 3,290 | 3.85% | |||||||||||||||
| Other securities (5) | 3,917 | 30 | 3.04% | 3,785 | 121 | 3.20% | 4,489 | 139 | 3.10% | |||||||||||||||
| Total securities | 1,546,560 | 8,628 | 2.21% | 1,541,940 | 34,281 | 2.22% | 1,432,408 | 34,231 | 2.39% | |||||||||||||||
| FHLBNY and FRB stock | 24,861 | 295 | 4.71% | 24,046 | 1,129 | 4.70% | 19,168 | 810 | 4.23% | |||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 3,687,488 | 40,675 | 4.38% | 3,531,945 | 157,222 | 4.45% | 3,238,992 | 152,958 | 4.72% | |||||||||||||||
| Total interest-earning assets | 5,260,979 | 49,599 | 3.74% | 5,099,743 | 192,636 | 3.78% | 4,691,582 | 188,001 | 4.01% | |||||||||||||||
| Other assets | 363,372 | 355,471 | 375,073 | |||||||||||||||||||||
| Total assets | 5,624,351 | 5,455,214 | 5,066,655 | |||||||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,453,336 | 957 | 0.15% | 2,363,087 | 3,821 | 0.16% | 2,286,707 | 4,312 | 0.19% | |||||||||||||||
| Time deposits | 867,140 | 1,599 | 0.73% | 895,391 | 6,630 | 0.74% | 904,040 | 6,769 | 0.75% | |||||||||||||||
| Total interest-bearing deposits | 3,320,476 | 2,556 | 0.31% | 3,258,478 | 10,451 | 0.32% | 3,190,747 | 11,081 | 0.35% | |||||||||||||||
| Federal funds purchased & securities sold under | ||||||||||||||||||||||||
| agreements to repurchase | 143,389 | 689 | 1.91% | 137,917 | 2,709 | 1.96% | 145,876 | 2,947 | 2.02% | |||||||||||||||
| Other borrowings | 429,361 | 1,301 | 1.20% | 417,737 | 4,897 | 1.17% | 251,312 | 4,368 | 1.74% | |||||||||||||||
| Trust preferred debentures | 37,481 | 582 | 6.16% | 37,417 | 2,308 | 6.17% | 37,249 | 2,287 | 6.14% | |||||||||||||||
| Total interest-bearing liabilities | 3,930,707 | 5,128 | 0.52% | 3,851,549 | 20,365 | 0.53% | 3,625,184 | 20,683 | 0.57% | |||||||||||||||
| Noninterest bearing deposits | 1,107,370 | 1,029,545 | 903,628 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 67,745 | 66,366 | 54,244 | |||||||||||||||||||||
| Total liabilities | 5,105,822 | 4,947,460 | 4,583,056 | |||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 516,988 | 506,243 | 482,087 | |||||||||||||||||||||
| Noncontrolling interest | 1,541 | 1,511 | 1,512 | |||||||||||||||||||||
| Total equity | 518,529 | 507,754 | 483,599 | |||||||||||||||||||||
| Total liabilities and equity | $ | 5,624,351 | $ | 5,455,214 | $ | 5,066,655 | ||||||||||||||||||
| Interest rate spread | 3.22% | 3.25% | 3.44% | |||||||||||||||||||||
| Net interest income/margin on earning assets | 44,471 | 3.35% | 172,271 | 3.38% | 167,318 | 3.57% | ||||||||||||||||||
| Tax Equivalent Adjustment | (1,034) | (3,890) | (3,508) | |||||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 43,437 | $ | 168,381 | $ | 163,810 | ||||||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) | ||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||||||||
| Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Dec-15 | |||||||||||||
| Period End Balance Sheet | ||||||||||||||||||
| Securities | $ | 1,539,123 | $ | 1,542,332 | $ | 1,536,374 | $ | 1,555,597 | $ | 1,499,396 | $ | 1,539,123 | ||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,310,768 | 3,149,386 | 3,013,968 | 2,898,533 | 2,839,974 | 3,310,768 | ||||||||||||
| Acquired loans and leases (3) | 461,274 | 484,927 | 507,963 | 529,024 | 553,314 | 461,274 | ||||||||||||
| Allowance for loan and lease losses | 32,004 | 30,965 | 30,091 | 29,485 | 28,997 | 32,004 | ||||||||||||
| Total assets | 5,689,995 | 5,594,718 | 5,436,136 | 5,357,533 | 5,269,561 | 5,689,995 | ||||||||||||
| Total deposits | 4,395,306 | 4,437,073 | 4,204,089 | 4,282,766 | 4,169,154 | 4,395,306 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 136,513 | 134,941 | 131,063 | 135,769 | 147,037 | 136,513 | ||||||||||||
| Other borrowings | 536,285 | 398,946 | 493,326 | 330,850 | 356,541 | 536,285 | ||||||||||||
| Trust preferred debentures | 37,509 | 37,466 | 37,423 | 37,380 | 37,337 | 37,509 | ||||||||||||
| Total common equity | 515,014 | 516,409 | 503,877 | 502,811 | 488,131 | 515,014 | ||||||||||||
| Total equity | 516,466 | 517,959 | 505,394 | 504,296 | 489,583 | 516,466 | ||||||||||||
| Average Balance Sheet | ||||||||||||||||||
| Average earning assets | $ | 5,260,979 | $ | 5,138,665 | $ | 5,038,586 | $ | 4,956,972 | $ | 4,799,027 | $ | 5,099,743 | ||||||
| Average assets | 5,624,351 | 5,486,645 | 5,391,114 | 5,315,002 | 5,193,347 | 5,455,214 | ||||||||||||
| Average interest-bearing liabilities | 3,930,707 | 3,856,025 | 3,835,430 | 3,782,355 | 3,668,311 | 3,851,549 | ||||||||||||
| Average equity | 518,529 | 509,518 | 505,667 | 497,047 | 495,531 | 507,754 | ||||||||||||
| Share data | ||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,719,394 | 14,739,915 | 14,751,844 | 14,701,397 | 14,639,631 | 14,728,193 | ||||||||||||
| Weighted average shares outstanding (diluted) | 14,869,103 | 14,866,735 | 14,878,107 | 14,837,935 | 14,765,855 | 14,863,026 | ||||||||||||
| Period-end shares outstanding | 14,979,684 | 14,905,576 | 14,942,107 | 14,962,079 | 14,895,444 | 14,979,684 | ||||||||||||
| Common equity book value per share | $ | 34.38 | $ | 34.65 | $ | 33.72 | $ | 33.61 | $ | 32.77 | $ | 34.38 | ||||||
| Tangible book value per share (Non-GAAP) | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 26.56 | $ | 25.66 | $ | 27.48 | ||||||
| Income Statement | ||||||||||||||||||
| Net interest income | $ | 43,437 | $ | 42,386 | $ | 41,330 | $ | 41,228 | $ | 41,692 | $ | 168,381 | ||||||
| Provision (Credit) for loan/lease losses | 1,533 | 281 | 922 | 209 | 1,555 | 2,945 | ||||||||||||
| Noninterest income | 17,910 | 17,422 | 18,962 | 17,646 | 18,056 | 71,940 | ||||||||||||
| Noninterest expense | 39,370 | 37,882 | 32,918 | 39,692 | 39,018 | 149,862 | ||||||||||||
| Income tax expense | 6,557 | 7,115 | 9,030 | 6,260 | 6,453 | 28,962 | ||||||||||||
| Net income attributable to Tompkins Financial Corporation | 13,854 | 14,497 | 17,390 | 12,680 | 12,689 | 58,421 | ||||||||||||
| Noncontrolling interests | 33 | 33 | 32 | 33 | 33 | 131 | ||||||||||||
| Basic earnings per share (9) | $ | 0.93 | $ | 0.97 | $ | 1.16 | $ | 0.85 | $ | 0.86 | $ | 3.91 | ||||||
| Diluted earnings per share (9) | $ | 0.92 | $ | 0.96 | $ | 1.15 | $ | 0.84 | $ | 0.85 | $ | 3.87 | ||||||
| Nonperforming Assets | ||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 13,506 | $ | 14,821 | $ | 14,566 | $ | 13,811 | $ | 14,299 | $ | 13,506 | ||||||
| Acquired nonaccrual loans and leases | 4,331 | 4,908 | 5,030 | 4,683 | 4,729 | 4,331 | ||||||||||||
| Originated loans and leases 90 days past due and accruing | 58 | 57 | 58 | 236 | 106 | 58 | ||||||||||||
| Troubled debt restructurings not included above | 3,915 | 3,465 | 1,939 | 1,589 | 3,444 | 3,915 | ||||||||||||
| Total nonperforming loans and leases | 21,810 | 23,251 | 21,593 | 20,319 | 22,578 | 21,810 | ||||||||||||
| OREO (8) | 2,692 | 3,188 | 2,570 | 5,816 | 5,683 | 2,692 | ||||||||||||
| Total nonperforming assets | $ | 24,502 | $ | 26,439 | $ | 24,163 | $ | 26,135 | $ | 28,261 | $ | 24,502 | ||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||
| Delinquency - Originated loan and lease portfolio | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Dec-15 | ||||||||||||
| Loans and leases 30-89 days past due and | ||||||||||||||||||
| accruing (2) | $ | 3,280 | $ | 3,550 | $ | 3,315 | $ | 2,438 | $ | 6,849 | $ | 3,280 | ||||||
| Loans and leases 90 days past due and accruing (2) | 58 | 57 | 58 | 236 | 106 | 58 | ||||||||||||
| Total originated loans and leases past due and accruing (2) | 3,338 | 3,607 | 3,373 | 2,674 | 6,955 | 3,338 | ||||||||||||
| Delinquency - Acquired loan and lease portfolio | ||||||||||||||||||
| Covered loans and leases 30-89 days past due and accruing (3)(7) | $ | 276 | $ | 309 | $ | 455 | $ | 547 | $ | 533 | $ | 276 | ||||||
| Covered loans and leases 90 days or more past | ||||||||||||||||||
| due and accruing (3)(7) | 524 | 508 | 674 | 682 | 914 | 524 | ||||||||||||
| Non-covered loans and leases 30-89 days past | ||||||||||||||||||
| due and accruing (3)(7) | 933 | 1,028 | 917 | 2,546 | 1,186 | 933 | ||||||||||||
| Non-covered loans and leases 90 days past | ||||||||||||||||||
| due and accruing (3)(7) | 1,991 | 2,069 | 3,031 | 2,811 | 2,614 | 1,991 | ||||||||||||
| Total acquired loans and leases past due and accruing | 3,724 | 3,914 | 5,077 | 6,586 | 5,247 | 3,724 | ||||||||||||
| Total loans and leases past due and accruing | $ | 7,062 | $ | 7,521 | $ | 8,450 | $ | 9,260 | $ | 12,202 | $ | 7,062 | ||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||||||||
| Balance at beginning of period | $ | 30,450 | $ | 29,428 | $ | 28,690 | $ | 28,156 | $ | 27,185 | $ | 28,156 | ||||||
| Provision for loan and lease losses | 1,185 | 173 | 769 | 340 | 1,102 | 2,467 | ||||||||||||
| Net loan and lease charge-offs (recoveries) | 323 | (849) | 31 | (194) | 131 | (689) | ||||||||||||
| Allowance for loan and lease losses (originated | 31,312 | 30,450 | 29,428 | 28,690 | 28,156 | 31,312 | ||||||||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | ||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||||||||
| Balance at beginning of period | $ | 515 | $ | 663 | $ | 795 | $ | 841 | $ | 601 | $ | 841 | ||||||
| Provision (Credit) for loan and lease losses | 348 | 108 | 153 | (131) | 453 | 478 | ||||||||||||
| Net loan and lease charge-offs (recoveries) | 171 | 256 | 285 | (85) | 213 | 627 | ||||||||||||
| Allowance for loan and lease losses (acquired | ||||||||||||||||||
| loan portfolio) - balance at end of period | 692 | 515 | 663 | 795 | 841 | 692 | ||||||||||||
| Total allowance for loan and lease losses | $ | 32,004 | $ | 30,965 | $ | 30,091 | $ | 29,485 | $ | 28,997 | $ | 32,004 | ||||||
| Loan Classification - Originated Portfolio | ||||||||||||||||||
| Special Mention | $ | 19,657 | $ | 25,133 | $ | 25,706 | $ | 34,965 | $ | 36,331 | $ | 19,657 | ||||||
| Substandard | 18,186 | 19,937 | 21,600 | 19,150 | 19,970 | 18,186 | ||||||||||||
| Loan Classification - Acquired Portfolio | ||||||||||||||||||
| Special Mention | 540 | 1,446 | 1,589 | 5,053 | 5,758 | 540 | ||||||||||||
| Substandard | 17,007 | 23,683 | 21,932 | 21,752 | 21,567 | 18,238 | ||||||||||||
| Loan Classifications - Total Portfolio | ||||||||||||||||||
| Special Mention | 20,197 | 26,579 | 27,295 | 40,018 | 42,089 | 20,197 | ||||||||||||
| Substandard | 35,193 | 43,620 | 43,532 | 40,902 | 41,537 | 36,424 | ||||||||||||
| RATIO ANALYSIS | Quarter-Ended | Year-Ended | ||||||||||||||||
| Credit Quality | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Dec-15 | ||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.58% | 0.64% | 0.61% | 0.59% | 0.67% | 0.58% | ||||||||||||
| Nonperforming assets/total assets | 0.43% | 0.47% | 0.44% | 0.49% | 0.54% | 0.43% | ||||||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.95% | 0.97% | 0.98% | 0.99% | 0.99% | 0.95% | ||||||||||||
| Allowance/nonperforming loans and leases | 146.74% | 133.18% | 139.36% | 145.11% | 128.43% | 146.74% | ||||||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | 0.05% | (0.07%) | 0.04% | (0.03%) | 0.04% | (0.00%) | ||||||||||||
| Capital Adequacy (period-end) | ||||||||||||||||||
| Tier 1 capital / average assets * | 8.82% | 8.89% | 8.92% | 8.85% | 8.75% | 8.82% | ||||||||||||
| Total capital / risk-weighted assets * | 13.03% | 13.29% | 13.46% | 13.37% | 13.60% | 13.03% | ||||||||||||
| *Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework | ||||||||||||||||||
| Profitability | ||||||||||||||||||
| Return on average assets * | 0.98% | 1.05% | 1.29% | 0.97% | 0.97% | 1.07% | ||||||||||||
| Return on average equity * | 10.63% | 11.29% | 13.79% | 10.35% | 10.16% | 11.51% | ||||||||||||
| Net interest margin (TE) * | 3.35% | 3.35% | 3.37% | 3.45% | 3.53% | 3.38% | ||||||||||||
| * Quarterly ratios have been annualized | ||||||||||||||||||
| Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share | ||||||||||||||||||
| Net income available to common shareholders | $ | 13,854 | $ | 14,497 | $ | 17,390 | $ | 12,680 | $ | 12,689 | $ | 58,421 | ||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 229 | 189 | 234 | 182 | 150 | 834 | ||||||||||||
| Adjusted net income available to common shareholders | 13,625 | 14,308 | 17,156 | 12,498 | 12,539 | 57,587 | ||||||||||||
| Gain on pension plan curtailment (net of tax) | 0 | 0 | (3,602) | 0 | 0 | (3,602) | ||||||||||||
| Net operating income (Non-GAAP) | 13,625 | 14,308 | 13,554 | 12,498 | 12,539 | 54,349 | ||||||||||||
| Weighted average shares outstanding (diluted) | 14,869,103 | 14,866,735 | 14,878,107 | 14,837,935 | 14,765,855 | 14,863,026 | ||||||||||||
| Adjusted diluted earnings per share (Non-GAAP) (9) | $ | 0.92 | $ | 0.96 | $ | 0.91 | $ | 0.84 | $ | 0.85 | $ | 3.66 | ||||||
| Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets | ||||||||||||||||||
| Total Common equity | $ | 515,014 | $ | 516,409 | $ | 503,877 | $ | 502,811 | $ | 488,131 | $ | 515,014 | ||||||
| Less: Goodwill and intangibles (10) | 103,347 | 104,349 | 104,845 | 105,344 | 105,852 | 103,347 | ||||||||||||
| Tangible common equity | 411,667 | 412,060 | 399,032 | 397,467 | 382,279 | 411,667 | ||||||||||||
| Total assets | 5,689,995 | 5,594,718 | 5,436,136 | 5,357,533 | 5,269,561 | 5,689,995 | ||||||||||||
| Less: Goodwill and intangibles (10) | 103,347 | 104,349 | 104,845 | 105,344 | 105,852 | 103,347 | ||||||||||||
| Tangible assets | 5,586,648 | 5,490,369 | 5,331,291 | 5,252,189 | 5,163,709 | 5,586,648 | ||||||||||||
| Tangible common equity / tangible assets (Non-GAAP) | 7.37% | 7.51% | 7.48% | 7.57% | 7.40% | 7.37% | ||||||||||||
| Non-GAAP Disclosure - Return on Average | Quarter-Ended | Year-Ended | ||||||||||||||||
| Tangible Common Equity | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-14 | Dec-15 | ||||||||||||
| Net income available to common shareholders | $ | 13,854 | $ | 14,497 | $ | 17,390 | $ | 12,680 | $ | 12,689 | $ | 58,421 | ||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 229 | 189 | 234 | 182 | 150 | 834 | ||||||||||||
| Adjusted net income available to common shareholders | 13,625 | 14,308 | 17,156 | 12,498 | 12,539 | 57,587 | ||||||||||||
| Gain on pension plan curtailment (net of tax) | 0 | 0 | (3,602) | 0 | 0 | (3,602) | ||||||||||||
| Net operating income (Non-GAAP) | 13,625 | 14,308 | 13,554 | 12,498 | 12,539 | 54,349 | ||||||||||||
| Amortization of intangibles (net of tax) | 306 | 298 | 300 | 304 | 315 | 1,208 | ||||||||||||
| Adjusted net operating income (Non-GAAP) | 13,931 | 14,606 | 13,854 | 12,802 | 12,854 | 55,557 | ||||||||||||
| Average common equity | 516,988 | 507,984 | 504,166 | 495,579 | 493,986 | 506,243 | ||||||||||||
| Less: Average goodwill and intangibles (10) | 103,963 | 104,633 | 105,130 | 105,644 | 106,151 | 104,837 | ||||||||||||
| Average tangible common equity capital | 413,025 | 403,351 | 399,036 | 389,935 | 387,835 | 401,406 | ||||||||||||
| Adjusted operating return on average tangible common equity (annualized) (Non-GAAP) | 13.39% | 14.37% | 13.93% | 13.32% | 13.15% | 14.07% | ||||||||||||
| Non-GAAP Disclosure - Tangible Book Value Per Share | ||||||||||||||||||
| Total common equity | $ | 515,014 | $ | 516,409 | $ | 503,877 | $ | 502,811 | $ | 488,131 | $ | 515,014 | ||||||
| Less: Goodwill and intangibles (10) | 103,347 | 104,349 | 104,845 | 105,344 | 105,852 | 103,347 | ||||||||||||
| Tangible common equity | 411,667 | 412,060 | 399,032 | 397,467 | 382,279 | 411,667 | ||||||||||||
| Ending shares outstanding | 14,979,684 | 14,905,576 | 14,942,107 | 14,962,079 | 14,895,444 | 14,979,684 | ||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 26.56 | $ | 25.66 | $ | 27.48 | ||||||
| Non-GAAP Disclosure - YTD adjusted diluted earnings per share | ||||||||
| Dec-15 | Dec-14 | |||||||
| Net income available to common shareholders | $ | 58,421 | $ | 52,041 | ||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 834 | 503 | ||||||
| Adjusted net income available to common shareholders | 57,587 | 51,538 | ||||||
| Gain on pension plan curtailment | (3,602) | 0 | ||||||
| Net operating income (Non-GAAP) | 53,985 | 51,538 | ||||||
| Weighted average shares outstanding (diluted) | 14,863,026 | 14,789,624 | ||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 3.63 | $ | 3.48 | ||||
(1) | Federal Reserve peer ratio as of September 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/20160129005144/en/
Contacts:
Stephen S. Romaine, 888-503-5753
President
& CEO
or
Francis M. Fetsko, 888-503-5753
Executive
VP, CFO & COO
