Tompkins Financial Corporation (NYSEMKT:TMP)
Tompkins Financial Corporation reported net income of $14.2 million for the first quarter of 2016, an increase of 11.8% from the $12.7 million reported for the same period in 2015. Diluted earnings per share were $0.94 for the first quarter of 2016, an 11.9% increase from $0.84 reported for the first quarter of 2015.
President and CEO, Stephen S. Romaine said, "We are excited to start off the new year with the best first quarter earnings results in our history. Solid loan growth, coupled with a stabilizing net interest margin, have been key drivers of growth over the prior year. At the same time, we have seen continued improvement in credit quality trends, with nonperforming assets improved from already low levels.”
SELECTED HIGHLIGHTS FOR FIRST QUARTER:
- Net interest income of $44.0 million was up 6.8% from the same period last year.
- Net interest margin has remained relatively stable over the past four quarters.
- Total loans of $3.8 billion were up 11.5% over the same period in 2015.
- Tangible book value per share was up 8.6% compared to the same period last year (refer to Non-GAAP measures).
- Credit quality continues to improve with nonperforming assets down 13.5% compared to the first quarter of 2015.
NET INTEREST INCOME
Net interest income of $44.0 million for the first quarter of 2016 increased 6.8% compared to the same period in 2015, and was up 1.4% compared to the fourth quarter of 2015. Growth in net interest income was largely driven by growth in average loans of $392.9 million (11.6%) since the first quarter of 2015; and $103.7 million (2.8%) since the fourth quarter of 2015. The net interest margin was 3.36% for the first quarter of 2016, down from 3.45% for the same period last year, but has remained relatively stable over the past four quarters.
NONINTEREST INCOME
Noninterest income represented 28.4% of total revenues in the first quarter of 2016, compared to 30.0% in 2015. Noninterest income of $17.5 million was consistent with the same period prior year, and was down 2.3% compared to the most recent prior quarter.
NONINTEREST EXPENSE
Noninterest expense was $39.5 million for the first quarter of 2016, which was consistent with the same period last year and the fourth quarter of 2015. Salaries and wages were up 8.1% compared to same quarter last year, which was partially offset by lower pension and employee benefits costs.
ASSET QUALITY
Asset quality trends continued to improve in the first quarter of 2016. Nonperforming assets were down 13.5% compared to the first quarter in 2015, and down 7.8% compared to the prior quarter end. Nonperforming assets represented 0.39% of total assets at March 31, 2016, down from 0.43% at December 31, 2015. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.90%.
Provision for loan and lease losses was $855,000 for the first quarter of 2016, up from $209,000 one year ago. Net charge-offs for the first quarter of 2016 were $329,000 compared to net recoveries of $279,000 reported in the first quarter 2015.
The Company’s allowance for originated loan and lease losses totaled $32.0 million at March 31, 2016, and represented 0.95% of total originated loans at March 31, 2016. The ratio is unchanged from the most recent prior quarter and is down from 0.99% one year ago. The total allowance represented 156.88% of total nonperforming loans and leases at March 31, 2016, up from 146.7% at December 31, 2015, and 145.11% at March 31, 2015.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.79%, compared to 8.82% reported for December 31, 2015, and 8.85% at March 31, 2015. Total Capital to risk-weighted assets improved from 13.03% at December 31, 2015 to 13.18% at March 31, 2016.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:
This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.
| TOMPKINS FINANCIAL CORPORATION | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||
| (In thousands, except share and per share data) (Unaudited) | As of | As of | |||||||||
| ASSETS | 03/31/2016 | 12/31/2015 | |||||||||
| Cash and noninterest bearing balances due from banks | $ | 53,637 | $ | 56,261 | |||||||
| Interest bearing balances due from banks | 1,877 | 1,996 | |||||||||
| Cash and Cash Equivalents | 55,514 | 58,257 | |||||||||
| Trading securities, at fair value | 7,023 | 7,368 | |||||||||
Available-for-sale securities, at fair value (amortized cost of $1,415,577 at March 31, 2016 and $1,390,255 at December 31, 2015) | 1,431,709 | 1,385,684 | |||||||||
Held-to-maturity securities, at amortized cost (fair value of $150,139 at March 31, 2016 and $146,686 at December 31, 2015) | 145,010 | 146,071 | |||||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,370,791 | 3,310,768 | |||||||||
| Acquired loans and leases, covered (3) | 12,737 | 14,031 | |||||||||
| Acquired loans and leases, non-covered (3) | 437,385 | 447,243 | |||||||||
| Less: Allowance for loan and lease losses | 32,530 | 32,004 | |||||||||
| Net Loans and Leases | 3,788,383 | 3,740,038 | |||||||||
| FDIC indemnification asset | 147 | 158 | |||||||||
| Federal Home Loan Bank stock | 25,727 | 29,969 | |||||||||
| Bank premises and equipment, net | 60,237 | 60,331 | |||||||||
| Corporate owned life insurance | 76,410 | 75,792 | |||||||||
| Goodwill | 92,617 | 91,792 | |||||||||
| Other intangible assets, net | 13,233 | 12,448 | |||||||||
| Accrued interest and other assets | 68,961 | 82,087 | |||||||||
| Total Assets | $ | 5,764,971 | $ | 5,689,995 | |||||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Interest bearing: | |||||||||||
| Checking, savings and money market | 2,574,523 | 2,401,519 | |||||||||
| Time | 887,142 | 855,133 | |||||||||
| Noninterest bearing | 1,093,563 | 1,138,654 | |||||||||
| Total Deposits | 4,555,228 | 4,395,306 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 116,551 | 136,513 | |||||||||
Other borrowings, including certain amounts at fair value of $10,518 at March 31, 2016 and $10,576 at December 31, 2015 | 455,341 | 536,285 | |||||||||
| Trust preferred debentures | 37,552 | 37,509 | |||||||||
| Other liabilities | 60,406 | 67,916 | |||||||||
| Total Liabilities | $ | 5,225,078 | $ | 5,173,529 | |||||||
| EQUITY | |||||||||||
| Tompkins Financial Corporation shareholders' equity: | |||||||||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,059,686 at March 31, 2016; and 15,015,594 at December 31, 2015 | 1,506 | 1,502 | |||||||||
| Additional paid-in capital | 353,846 | 350,823 | |||||||||
| Retained earnings | 205,031 | 197,445 | |||||||||
| Accumulated other comprehensive loss | (18,341 | ) | (31,001 | ) | |||||||
Treasury stock, at cost – 111,924 shares at March 31, 2016, and 116,126 shares at December 31, 2015 | (3,634 | ) | (3,755 | ) | |||||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 538,408 | 515,014 | |||||||||
| Noncontrolling interests | 1,485 | 1,452 | |||||||||
| Total Equity | $ | 539,893 | $ | 516,466 | |||||||
| Total Liabilities and Equity | $ | 5,764,971 | $ | 5,689,995 | |||||||
| TOMPKINS FINANCIAL CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
| Three Months Ended | |||||||
| (In thousands, except per share data) (Unaudited) | 03/31/2016 | 03/31/2015 | |||||
| INTEREST AND DIVIDEND INCOME | |||||||
| Loans | $ | 40,487 | $ | 37,376 | |||
| Due from banks | 2 | 1 | |||||
| Trading securities | 81 | 94 | |||||
| Available-for-sale securities | 7,531 | 7,814 | |||||
| Held-to-maturity securities | 911 | 596 | |||||
| Federal Home Loan Bank stock and Federal Reserve Bank stock | 297 | 347 | |||||
| Total Interest and Dividend Income | 49,309 | 46,228 | |||||
| INTEREST EXPENSE | |||||||
| Time certificates of deposits of $250,000 or more | 390 | 335 | |||||
| Other deposits | 2,209 | 2,286 | |||||
| Federal funds purchased and securities sold under agreements to | |||||||
| repurchase | 666 | 670 | |||||
| Trust preferred debentures | 589 | 570 | |||||
| Other borrowings | 1,417 | 1,139 | |||||
| Total Interest Expense | 5,271 | 5,000 | |||||
| Net Interest Income | 44,038 | 41,228 | |||||
| Less: Provision for loan and lease losses | 855 | 209 | |||||
| Net Interest Income After Provision for Loan and Lease Losses | 43,183 | 41,019 | |||||
| NONINTEREST INCOME | |||||||
| Insurance commissions and fees | 7,562 | 7,370 | |||||
| Investment services income | 3,786 | 4,007 | |||||
| Service charges on deposit accounts | 2,264 | 2,157 | |||||
| Card services income | 1,941 | 1,818 | |||||
| Mark-to-market loss on trading securities | (46 | ) | (63 | ) | |||
| Mark-to-market gain on liabilities held at fair value | 57 | 41 | |||||
| Other income | 1,707 | 2,026 | |||||
| Gain on sale of available-for-sale securities | 232 | 290 | |||||
| Total Noninterest Income | 17,503 | 17,646 | |||||
| NONINTEREST EXPENSES | |||||||
| Salaries and wages | 18,989 | 17,568 | |||||
| Pension and other employee benefits | 5,283 | 5,994 | |||||
| Net occupancy expense of premises | 3,148 | 3,339 | |||||
| Furniture and fixture expense | 1,689 | 1,450 | |||||
| FDIC insurance | 822 | 741 | |||||
| Amortization of intangible assets | 527 | 507 | |||||
| Other operating expense | 9,048 | 10,093 | |||||
| Total Noninterest Expenses | 39,506 | 39,692 | |||||
| Income Before Income Tax Expense | 21,180 | 18,973 | |||||
| Income Tax Expense | 6,967 | 6,260 | |||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 14,213 | 12,713 | |||||
| Less: Net income attributable to noncontrolling interests | 33 | 33 | |||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 14,180 | $ | 12,680 | |||
| Basic Earnings Per Share | $ | 0.95 | $ | 0.85 | |||
| Diluted Earnings Per Share | $ | 0.94 | $ | 0.84 | |||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||||||||
| Year to Date Period Ended | Year to Date Period Ended | |||||||||||||||||||||
| March 31, 2016 | March 31, 2015 | |||||||||||||||||||||
| 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 | $ | 2,094 | $ | 2 | 0.38 | % | $ | 1,388 | $ | 1 | 0.29 | % | ||||||||||
| Securities (4) | ||||||||||||||||||||||
| U.S. Government securities | 1,458,755 | 7,903 | 2.18 | % | 1,435,574 | 7,853 | 2.22 | % | ||||||||||||||
| Trading securities | 7,248 | 81 | 4.49 | % | 8,858 | 94 | 4.30 | % | ||||||||||||||
| State and municipal (5) | 97,631 | 838 | 3.45 | % | 88,304 | 870 | 4.00 | % | ||||||||||||||
| Other securities (5) | 3,686 | 31 | 3.38 | % | 3,764 | 30 | 3.23 | % | ||||||||||||||
| Total securities | 1,567,320 | 8,853 | 2.27 | % | 1,536,500 | 8,847 | 2.34 | % | ||||||||||||||
| FHLBNY and FRB stock | 27,799 | 298 | 4.31 | % | 20,765 | 347 | 6.78 | % | ||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 3,791,207 | 41,185 | 4.37 | % | 3,398,319 | 37,954 | 4.53 | % | ||||||||||||||
| Total interest-earning assets | 5,388,420 | 50,338 | 3.76 | % | 4,956,972 | 47,149 | 3.86 | % | ||||||||||||||
| Other assets | 341,851 | 358,030 | ||||||||||||||||||||
| Total assets | 5,730,271 | 5,315,002 | ||||||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,533,185 | 956 | 0.15 | % | 2,348,973 | 990 | 0.17 | % | ||||||||||||||
| Time deposits | 868,095 | 1,643 | 0.76 | % | 905,981 | 1,631 | 0.73 | % | ||||||||||||||
| Total interest-bearing deposits | 3,401,280 | 2,599 | 0.31 | % | 3,254,954 | 2,621 | 0.33 | % | ||||||||||||||
| Federal funds purchased & securities sold under | ||||||||||||||||||||||
| agreements to repurchase | 126,262 | 666 | 2.12 | % | 142,359 | 670 | 1.91 | % | ||||||||||||||
| Other borrowings | 502,319 | 1,417 | 1.13 | % | 347,690 | 1,139 | 1.33 | % | ||||||||||||||
| Trust preferred debentures | 37,524 | 589 | 6.31 | % | 37,352 | 570 | 6.19 | % | ||||||||||||||
| Total interest-bearing liabilities | 4,067,385 | 5,271 | 0.52 | % | 3,782,355 | 5,000 | 0.54 | % | ||||||||||||||
| Noninterest bearing deposits | 1,067,638 | 973,212 | ||||||||||||||||||||
| Accrued expenses and other liabilities | 66,934 | 62,388 | ||||||||||||||||||||
| Total liabilities | 5,201,957 | 4,817,955 | ||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 526,846 | 495,579 | ||||||||||||||||||||
| Noncontrolling interest | 1,468 | 1,468 | ||||||||||||||||||||
| Total equity | 528,314 | 497,047 | ||||||||||||||||||||
| Total liabilities and equity | $ | 5,730,271 | $ | 5,315,002 | ||||||||||||||||||
| Interest rate spread | 3.24 | % | 3.32 | % | ||||||||||||||||||
| Net interest income/margin on earning assets | 45,067 | 3.36 | % | 42,149 | 3.45 | % | ||||||||||||||||
| Tax Equivalent Adjustment | (1,029 | ) | (921 | ) | ||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 44,038 | $ | 41,228 | ||||||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) | ||||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||||||||||
| Mar-16 | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-15 | |||||||||||||||
| Period End Balance Sheet | ||||||||||||||||||||
| Securities | $ | 1,583,742 | $ | 1,539,123 | $ | 1,542,332 | $ | 1,536,374 | $ | 1,555,597 | $ | 1,539,123 | ||||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,370,791 | 3,310,768 | 3,149,386 | 3,013,968 | 2,898,533 | 3,310,768 | ||||||||||||||
| Acquired loans and leases (3) | 450,122 | 461,274 | 484,927 | 507,963 | 529,024 | 461,274 | ||||||||||||||
| Allowance for loan and lease losses | 32,530 | 32,004 | 30,965 | 30,091 | 29,485 | 32,004 | ||||||||||||||
| Total assets | 5,764,971 | 5,689,995 | 5,594,718 | 5,436,136 | 5,357,533 | 5,689,995 | ||||||||||||||
| Total deposits | 4,555,228 | 4,395,306 | 4,437,073 | 4,204,089 | 4,282,766 | 4,395,306 | ||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 116,551 | 136,513 | 134,941 | 131,063 | 135,769 | 136,513 | ||||||||||||||
| Other borrowings | 455,341 | 536,285 | 398,946 | 493,326 | 330,850 | 536,285 | ||||||||||||||
| Trust preferred debentures | 37,552 | 37,509 | 37,466 | 37,423 | 37,380 | 37,509 | ||||||||||||||
| Total common equity | 538,408 | 515,014 | 516,409 | 503,877 | 502,811 | 515,014 | ||||||||||||||
| Total equity | 539,893 | 516,466 | 517,959 | 505,394 | 504,296 | 516,466 | ||||||||||||||
| Average Balance Sheet | ||||||||||||||||||||
| Average earning assets | $ | 5,388,420 | $ | 5,260,979 | $ | 5,138,665 | $ | 5,038,586 | $ | 4,956,972 | $ | 5,099,743 | ||||||||
| Average assets | 5,730,271 | 5,624,351 | 5,486,645 | 5,391,114 | 5,315,002 | 5,455,214 | ||||||||||||||
| Average interest-bearing liabilities | 4,067,385 | 3,930,707 | 3,856,025 | 3,835,430 | 3,782,355 | 3,851,549 | ||||||||||||||
| Average equity | 528,314 | 518,529 | 509,518 | 505,667 | 497,047 | 507,754 | ||||||||||||||
| Share data | ||||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,760,276 | 14,719,394 | 14,739,915 | 14,751,844 | 14,701,397 | 14,728,193 | ||||||||||||||
| Weighted average shares outstanding (diluted) | 14,905,919 | 14,869,103 | 14,866,735 | 14,878,107 | 14,837,935 | 14,863,026 | ||||||||||||||
| Period-end shares outstanding | 15,023,776 | 14,979,684 | 14,905,576 | 14,942,107 | 14,962,079 | 14,979,684 | ||||||||||||||
| Common equity book value per share | $ | 35.84 | $ | 34.38 | $ | 34.65 | $ | 33.72 | $ | 33.61 | $ | 34.38 | ||||||||
| Tangible book value per share (Non-GAAP) | $ | 28.85 | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 26.56 | $ | 27.48 | ||||||||
| Income Statement | ||||||||||||||||||||
| Net interest income | $ | 44,038 | $ | 43,437 | $ | 42,386 | $ | 41,330 | $ | 41,228 | $ | 168,381 | ||||||||
| Provision (Credit) for loan/lease losses | 855 | 1,533 | 281 | 922 | 209 | 2,945 | ||||||||||||||
| Noninterest income | 17,503 | 17,910 | 17,422 | 18,962 | 17,646 | 71,940 | ||||||||||||||
| Noninterest expense | 39,506 | 39,370 | 37,882 | 32,918 | 39,692 | 149,862 | ||||||||||||||
| Income tax expense | 6,967 | 6,557 | 7,115 | 9,030 | 6,260 | 28,962 | ||||||||||||||
| Net income attributable to Tompkins Financial Corporation | 14,180 | 13,854 | 14,497 | 17,390 | 12,680 | 58,421 | ||||||||||||||
| Noncontrolling interests | 33 | 33 | 33 | 32 | 33 | 131 | ||||||||||||||
| Basic earnings per share (9) | $ | 0.95 | $ | 0.93 | $ | 0.97 | $ | 1.16 | $ | 0.85 | $ | 3.91 | ||||||||
| Diluted earnings per share (9) | $ | 0.94 | $ | 0.92 | $ | 0.96 | $ | 1.15 | $ | 0.84 | $ | 3.87 | ||||||||
| Nonperforming Assets | ||||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 12,671 | $ | 13,506 | $ | 14,821 | $ | 14,566 | $ | 13,811 | $ | 13,506 | ||||||||
| Acquired nonaccrual loans and leases | 4,145 | 4,331 | 4,908 | 5,030 | 4,683 | 4,331 | ||||||||||||||
| Originated loans and leases 90 days past due and accruing | 57 | 58 | 57 | 58 | 236 | 58 | ||||||||||||||
| Troubled debt restructurings not included above | 3,862 | 3,915 | 3,465 | 1,939 | 1,589 | 3,915 | ||||||||||||||
| Total nonperforming loans and leases | 20,735 | 21,810 | 23,251 | 21,593 | 20,319 | 21,810 | ||||||||||||||
| OREO (8) | 1,865 | 2,692 | 3,188 | 2,570 | 5,816 | 2,692 | ||||||||||||||
| Total nonperforming assets | $ | 22,600 | $ | 24,502 | $ | 26,439 | $ | 24,163 | $ | 26,135 | $ | 24,502 | ||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||||
| Delinquency - Originated loan and lease portfolio | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-15 | ||||||||||||||
| Loans and leases 30-89 days past due and | ||||||||||||||||||||
| accruing (2) | $ | 2,519 | $ | 3,280 | $ | 3,550 | $ | 3,315 | $ | 2,438 | $ | 3,280 | ||||||||
| Loans and leases 90 days past due and accruing (2) | 57 | 58 | 57 | 58 | 236 | 58 | ||||||||||||||
| Total originated loans and leases past due and accruing (2) | 2,576 | 3,338 | 3,607 | 3,373 | 2,674 | 3,338 | ||||||||||||||
| Delinquency - Acquired loan and lease portfolio | ||||||||||||||||||||
| Covered loans and leases 30-89 days past due and accruing (3)(7) | $ | 1 | $ | 276 | $ | 309 | $ | 455 | $ | 547 | $ | 276 | ||||||||
| Covered loans and leases 90 days or more past | ||||||||||||||||||||
| due and accruing (3)(7) | 469 | 524 | 508 | 674 | 682 | 524 | ||||||||||||||
| Non-covered loans and leases 30-89 days past | ||||||||||||||||||||
| due and accruing (3)(7) | 1,038 | 933 | 1,028 | 917 | 2,546 | 933 | ||||||||||||||
| Non-covered loans and leases 90 days past | ||||||||||||||||||||
| due and accruing (3)(7) | 1,446 | 1,991 | 2,069 | 3,031 | 2,811 | 1,991 | ||||||||||||||
| Total acquired loans and leases past due and accruing | 2,954 | 3,724 | 3,914 | 5,077 | 6,586 | 3,724 | ||||||||||||||
| Total loans and leases past due and accruing | $ | 5,530 | $ | 7,062 | $ | 7,521 | $ | 8,450 | $ | 9,260 | $ | 7,062 | ||||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||||||||||
| Balance at beginning of period | $ | 31,312 | $ | 30,450 | $ | 29,428 | $ | 28,690 | $ | 28,156 | $ | 28,156 | ||||||||
| Provision for loan and lease losses | 872 | 1,185 | 173 | 769 | 340 | 2,467 | ||||||||||||||
| Net loan and lease charge-offs (recoveries) | 203 | 323 | (849 | ) | 31 | (194 | ) | (689 | ) | |||||||||||
| Allowance for loan and lease losses (originated | 31,981 | 31,312 | 30,450 | 29,428 | 28,690 | 31,312 | ||||||||||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | ||||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||||||||||
| Balance at beginning of period | $ | 692 | $ | 515 | $ | 663 | $ | 795 | $ | 841 | $ | 841 | ||||||||
| Provision (Credit) for loan and lease losses | (17 | ) | 348 | 108 | 153 | (131 | ) | 478 | ||||||||||||
| Net loan and lease charge-offs (recoveries) | 126 | 171 | 256 | 285 | (85 | ) | 627 | |||||||||||||
| Allowance for loan and lease losses (acquired | ||||||||||||||||||||
| loan portfolio) - balance at end of period | 549 | 692 | 515 | 663 | 795 | 692 | ||||||||||||||
| Total allowance for loan and lease losses | $ | 32,530 | $ | 32,004 | $ | 30,965 | $ | 30,091 | $ | 29,485 | $ | 32,004 | ||||||||
| Loan Classification - Originated Portfolio | ||||||||||||||||||||
| Special Mention | $ | 20,388 | $ | 19,657 | $ | 25,133 | $ | 25,706 | $ | 34,965 | $ | 19,657 | ||||||||
| Substandard | 18,026 | 18,186 | 19,937 | 21,600 | 19,150 | 18,186 | ||||||||||||||
| Loan Classification - Acquired Portfolio | ||||||||||||||||||||
| Special Mention | 534 | 540 | 1,446 | 1,589 | 5,053 | 540 | ||||||||||||||
| Substandard | 17,445 | 17,007 | 23,683 | 21,932 | 21,752 | 18,238 | ||||||||||||||
| Loan Classifications - Total Portfolio | ||||||||||||||||||||
| Special Mention | 20,922 | 20,197 | 26,579 | 27,295 | 40,018 | 20,197 | ||||||||||||||
| Substandard | 35,471 | 35,193 | 43,620 | 43,532 | 40,902 | 36,424 | ||||||||||||||
| RATIO ANALYSIS | Quarter-Ended | Year-Ended | ||||||||||||||||||
| Credit Quality | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-15 | ||||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.54 | % | 0.58 | % | 0.64 | % | 0.61 | % | 0.59 | % | 0.58 | % | ||||||||
| Nonperforming assets/total assets | 0.39 | % | 0.43 | % | 0.47 | % | 0.44 | % | 0.49 | % | 0.43 | % | ||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.95 | % | 0.95 | % | 0.97 | % | 0.98 | % | 0.99 | % | 0.95 | % | ||||||||
| Allowance/nonperforming loans and leases | 156.88 | % | 146.74 | % | 133.18 | % | 139.36 | % | 145.11 | % | 146.74 | % | ||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | 0.03 | % | 0.05 | % | (0.07 | %) | 0.04 | % | (0.03 | %) | (0.00 | %) | ||||||||
| Capital Adequacy (period-end) | ||||||||||||||||||||
| Tier 1 capital / average assets * | 8.79 | % | 8.82 | % | 8.89 | % | 8.92 | % | 8.85 | % | 8.82 | % | ||||||||
| Total capital / risk-weighted assets * | 13.18 | % | 13.03 | % | 13.29 | % | 13.46 | % | 13.37 | % | 13.03 | % | ||||||||
| *Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework | ||||||||||||||||||||
| Profitability | ||||||||||||||||||||
| Return on average assets * | 0.99 | % | 0.98 | % | 1.05 | % | 1.29 | % | 0.97 | % | 1.07 | % | ||||||||
| Return on average equity * | 10.77 | % | 10.63 | % | 11.29 | % | 13.79 | % | 10.35 | % | 11.51 | % | ||||||||
| Net interest margin (TE) * | 3.36 | % | 3.35 | % | 3.35 | % | 3.37 | % | 3.45 | % | 3.38 | % | ||||||||
| * Quarterly ratios have been annualized | ||||||||||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | |
| 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 measure 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. | |
Quarter-Ended | Year-Ended | ||||||||||||||||||||
| Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Mar-15 | Dec-15 | |||||||||||||||
| Net income available to common shareholders | $ | 14,180 | $ | 13,854 | $ | 14,497 | $ | 17,390 | $ | 12,680 | $ | 58,421 | |||||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 224 | 229 | 189 | 234 | 182 | 834 | |||||||||||||||
| Adjusted net income available to common shareholders | 13,956 | 13,625 | 14,308 | 17,156 | 12,498 | 57,587 | |||||||||||||||
| Gain on pension plan curtailment (net of tax) | 0 | 0 | 0 | (3,602 | ) | 0 | (3,602 | ) | |||||||||||||
| Net operating income (Non-GAAP) | 13,956 | 13,625 | 14,308 | 13,554 | 12,498 | 54,349 | |||||||||||||||
| Weighted average shares outstanding (diluted) | 14,905,919 | 14,869,103 | 14,866,735 | 14,878,107 | 14,837,935 | 14,863,026 | |||||||||||||||
| Adjusted diluted earnings per share (Non-GAAP) (9) | $ | 0.94 | $ | 0.92 | $ | 0.96 | $ | 0.91 | $ | 0.84 | $ | 3.66 | |||||||||
| Non-GAAP Disclosure - Tangible Book Value Per Share | |||||||||||||||||||||
| Total common equity | $ | 538,408 | $ | 515,014 | $ | 516,409 | $ | 503,877 | $ | 502,811 | $ | 515,014 | |||||||||
| Less: Goodwill and intangibles (10) | 104,987 | 103,347 | 104,349 | 104,845 | 105,344 | 103,347 | |||||||||||||||
| Tangible common equity | 433,421 | 411,667 | 412,060 | 399,032 | 397,467 | 411,667 | |||||||||||||||
| Ending shares outstanding | 15,023,776 | 14,979,684 | 14,905,576 | 14,942,107 | 14,962,079 | 14,979,684 | |||||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 28.85 | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 26.56 | $ | 27.48 | |||||||||
| (1) Federal Reserve peer ratio as of December 31, 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, 2015. |
| (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/20160422005242/en/
Contacts:
Stephen S. Romaine, President & CEO
Francis
M. Fetsko, Executive VP, CFO & COO
(888)503-5753
