Tompkins Financial Corporation (NYSEMKT:TMP) reported net income of $16.9 million for the second quarter of 2017, an increase of 14.1% from the $14.8 million reported for the same period in 2016. Year to date net income was $32.6 million, an increase of $3.6 million, up 12.2% over the same period in 2016.
Diluted earnings per share were $1.11 for the second quarter of 2017, up 13.3% over the second quarter of 2016. For the year-to-date period ended June 30, 2017, diluted earnings per share were $2.13, up 11.5% over the same period in 2016.
President and CEO, Stephen S. Romaine said, “It is especially rewarding to show strong performance through the first half of 2017, while our team was also focused on a conversion of our core banking system, which was successfully completed in May of this year. Improved net interest income, which was supported by solid loan growth over the prior year, has been the primary driver of improved earnings performance in 2017.”
SELECTED HIGHLIGHTS FOR SECOND QUARTER AND YEAR TO DATE:
- Diluted earnings per share of $1.11 for the second quarter represented a 13.3% increase over the same period last year, while year-to-date diluted earnings per share of $2.13 reflect the best earnings through the first six months of any year in our Company’s history.
- Quarterly returns on average assets and average equity of 1.07% and 11.85%, respectively, are at their highest levels since June 2015
- Net interest margin improved for the second consecutive quarter and is at its highest level since March 2015.
- Total loans of $4.4 billion were up 11.1% over the same period in 2016; and are up 3.8% over December 31, 2016.
- Total deposits of $4.8 billion reflect an increase of 6.3% over the same period last year, and are up 2.7% from December 31, 2016.
NET INTEREST INCOME
Net interest income of $50.3 million for the second quarter of 2017 increased by $5.4 million, or 12.0% compared to the same period in 2016. For the year-to-date period, net interest income was $98.3 million, up $9.4 million, or 10.6% from the same six-month period in 2016.
Net interest income benefited from growth in average loans and deposits. Average loans were up $467.1 million, or 12.2% in the first six months of 2017, versus the same period in 2016. Average deposits were up $260.3 million, or 5.8% in the first six months of 2017, versus the same period in 2016. Certain loans benefited from higher short term interest rates in 2017, resulting in an improved net interest margin in 2017. For the second quarter of 2017, net interest margin improved to 3.45%, compared to 3.38% in the first quarter of 2017, and 3.36% in the second quarter of 2016.
NONINTEREST INCOME
Noninterest income represented 25.8% of total revenues in the second quarter of 2017, compared to 27.6% in the same period in 2016, and 26.4% for the most recent prior quarter. Noninterest income of $17.5 million was up 2.1% compared to the same period last year. Declines in insurance commissions and fees, and gains on the sale of available-for-sale securities during the quarter were offset by improved card services income, which included approximately $500,000 of volume based incentives related to our branding agreement with MasterCard. Other income for the second quarter was up $379,000 from the same quarter in 2016. The improvement included approximately $130,000 of recoveries of nonaccrued interest on loans previously charged off.
NONINTEREST EXPENSE
Noninterest expense was $41.6 million for the second quarter of 2017, up $2.2 million, or 5.5%, over the second quarter of 2016. For the year-to-date period, noninterest expense was $82.9 million, up $4.0 million, or 5.1%, from the same period in 2016. The increase in noninterest expense for both the second quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $411,000 of expense related to our recently completed core system conversion, compared to $262,000 in the quarter ended March 31, 2017, and $76,000 in the quarter ended June 30, 2017.
ASSET QUALITY
Asset quality trends remained strong in the second quarter of 2017. Nonperforming assets represented 0.36% of total assets at June 30, 2017, unchanged from December 31, 2016, and up slightly from 0.32% at June 30, 2016. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.55%.
Provision for loan and lease losses was $976,000 for the second quarter of 2017, which was in line with the second quarter of 2016. Net recoveries for the second quarter of 2017 were $15,000 compared to net charge-offs of $383,000 reported in the second quarter of 2016.
The Company’s allowance for originated loan and lease losses totaled $37.0 million at June 30, 2017, and represented 0.91% of total originated loans and leases at June 30, 2017, compared to 0.92% reported for the most recent prior quarter, and 0.93% from one year ago. The total allowance represented 178.58% of total nonperforming loans and leases at June 30, 2017, compared to 164.98% at December 31, 2016, and 183.01% at June 30, 2016.
Though most credit quality metrics remained relatively stable for the quarter, the level of special mention loans increased during the quarter to $39.0 million, up from $21.2 million a year ago, and up from $19.4 million at March 31, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower milk prices over the past 12 months. Though lower prices have negatively impacted cash flow for this group of borrowers, payments on all of the loans in this portfolio were current as of June 30, 2017.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.43% at June 30, 2017, compared to 8.41% reported for December 31, 2016. Total capital to risk-weighted assets at June 30, 2017 was 12.45%, compared to 12.22% reported at December 31, 2016. Both ratios are down from the same period last year, in large part due to the redemption of $20.5 million of 7% fixed rate Trust Preferred securities in January 2017.
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 | 06/30/2017 | 12/31/2016 | ||||||||
Cash and noninterest bearing balances due from banks | $ | 76,079 | $ | 62,074 | ||||||
| Interest bearing balances due from banks | 2,096 | 1,880 | ||||||||
| Cash and Cash Equivalents | 78,175 | 63,954 | ||||||||
| Available-for-sale securities, at fair value (amortized cost of $1,433,013 at June 30, | ||||||||||
| 2017 and $1,442,724 at December 31, 2016) | 1,424,871 | 1,429,538 | ||||||||
| Held-to-maturity securities, at amortized cost (fair value of $141,654 at June 30, 2017 | ||||||||||
| and $142,832 at December 31, 2016) | 139,994 | 142,119 | ||||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 4,070,755 | 3,863,922 | ||||||||
| Acquired loans (3) | 347,841 | 394,111 | ||||||||
| Less: Allowance for loan and lease losses | 37,157 | 35,755 | ||||||||
| Net Loans and Leases | 4,381,439 | 4,222,278 | ||||||||
| Federal Home Loan Bank and other stock | 45,714 | 43,133 | ||||||||
| Bank premises and equipment, net | 72,884 | 70,016 | ||||||||
| Corporate owned life insurance | 79,093 | 77,905 | ||||||||
| Goodwill | 92,291 | 92,623 | ||||||||
| Other intangible assets, net | 9,549 | 11,349 | ||||||||
| Accrued interest and other assets | 91,002 | 83,841 | ||||||||
| Total Assets | $ | 6,415,012 | $ | 6,236,756 | ||||||
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Interest bearing: | ||||||||||
| Checking, savings and money market | 2,643,292 | 2,518,318 | ||||||||
| Time | 826,933 | 870,788 | ||||||||
| Noninterest bearing | 1,280,497 | 1,236,033 | ||||||||
| Total Deposits | 4,750,722 | 4,625,139 | ||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 50,360 | 69,062 | ||||||||
| Other borrowings | 952,035 | 884,815 | ||||||||
| Trust preferred debentures | 16,605 | 37,681 | ||||||||
| Other liabilities | 68,375 | 70,654 | ||||||||
| Total Liabilities | $ | 5,838,097 | $ | 5,687,351 | ||||||
| EQUITY | ||||||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: | ||||||||||
| 15,225,363 at June 30, 2017; and 15,171,816 at December 31, 2016 | 1,522 | 1,517 | ||||||||
| Additional paid-in capital | 362,555 | 357,414 | ||||||||
| Retained earnings | 249,179 | 230,182 | ||||||||
| Accumulated other comprehensive loss | (33,624 | ) | (37,109 | ) | ||||||
| Treasury stock, at cost – 117,302 shares at June 30, 2017, and 117,997 shares | ||||||||||
| at December 31, 2016 | (4,204 | ) | (4,051 | ) | ||||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 575,428 | 547,953 | ||||||||
| Noncontrolling interests | 1,487 | 1,452 | ||||||||
| Total Equity | $ | 576,915 | $ | 549,405 | ||||||
| Total Liabilities and Equity | $ | 6,415,012 | $ | 6,236,756 | ||||||
| TOMPKINS FINANCIAL CORPORATION | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| (In thousands, except per share data) (Unaudited) | 06/30/2017 | 06/30/2016 | 06/30/2017 | 06/30/2016 | ||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||
| Loans | $ | 47,357 | $ | 41,834 | $ | 92,308 | $ | 82,321 | ||||||||
| Due from banks | 4 | 1 | 6 | 3 | ||||||||||||
| Trading securities | 0 | 77 | 0 | 158 | ||||||||||||
| Available-for-sale securities | 7,647 | 7,284 | 14,969 | 14,815 | ||||||||||||
| Held-to-maturity securities | 870 | 903 | 1,748 | 1,814 | ||||||||||||
| Federal Home Loan Bank and other stock | 464 | 318 | 932 | 615 | ||||||||||||
| Total Interest and Dividend Income | 56,342 | 50,417 | 109,963 | 99,726 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Time certificates of deposits of $250,000 or more | 466 | 422 | 907 | 812 | ||||||||||||
| Other deposits | 2,482 | 2,264 | 4,829 | 4,473 | ||||||||||||
| Federal funds purchased and securities sold under agreements to | ||||||||||||||||
| repurchase | 43 | 644 | 151 | 1,310 | ||||||||||||
| Trust preferred debentures | 256 | 594 | 623 | 1,183 | ||||||||||||
| Other borrowings | 2,794 | 1,586 | 5,118 | 3,003 | ||||||||||||
| Total Interest Expense | 6,041 | 5,510 | 11,628 | 10,781 | ||||||||||||
| Net Interest Income | 50,301 | 44,907 | 98,335 | 88,945 | ||||||||||||
| Less: Provision for loan and lease losses | 976 | 978 | 1,745 | 1,833 | ||||||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 49,325 | 43,929 | 96,590 | 87,112 | ||||||||||||
| NONINTEREST INCOME | ||||||||||||||||
| Insurance commissions and fees | 7,092 | 7,517 | 14,210 | 15,079 | ||||||||||||
| Investment services income | 3,891 | 3,834 | 7,682 | 7,620 | ||||||||||||
| Service charges on deposit accounts | 2,045 | 2,092 | 4,212 | 4,356 | ||||||||||||
| Card services income | 2,676 | 2,002 | 4,685 | 3,943 | ||||||||||||
| Mark-to-market loss on trading securities | 0 | (60 | ) | 0 | (106 | ) | ||||||||||
| Mark-to-market gain on liabilities held at fair value | 0 | 92 | 0 | 149 | ||||||||||||
| Other income | 1,746 | 1,367 | 3,901 | 3,074 | ||||||||||||
| Gain on sale of available-for-sale securities | 0 | 240 | 0 | 472 | ||||||||||||
| Total Noninterest Income | 17,450 | 17,084 | 34,690 | 34,587 | ||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||
| Salaries and wages | 20,424 | 19,333 | 39,937 | 38,322 | ||||||||||||
| Pension and other employee benefits | 5,092 | 4,934 | 10,851 | 10,217 | ||||||||||||
| Net occupancy expense of premises | 3,390 | 2,999 | 6,901 | 6,147 | ||||||||||||
| Furniture and fixture expense | 1,637 | 1,577 | 3,234 | 3,266 | ||||||||||||
| FDIC insurance | 617 | 783 | 1,155 | 1,605 | ||||||||||||
| Amortization of intangible assets | 485 | 521 | 978 | 1,048 | ||||||||||||
| Other operating expense | 9,923 | 9,241 | 19,880 | 18,289 | ||||||||||||
| Total Noninterest Expenses | 41,568 | 39,388 | 82,936 | 78,894 | ||||||||||||
| Income Before Income Tax Expense | 25,207 | 21,625 | 48,344 | 42,805 | ||||||||||||
| Income Tax Expense | 8,248 | 6,760 | 15,637 | 13,656 | ||||||||||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 16,959 | 14,865 | 32,707 | 29,149 | ||||||||||||
| Less: Net income attributable to noncontrolling interests | 33 | 32 | 65 | 65 | ||||||||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 16,926 | $ | 14,833 | $ | 32,642 | $ | 29,084 | ||||||||
| Basic Earnings Per Share | $ | 1.11 | $ | 0.99 | $ | 2.15 | $ | 1.93 | ||||||||
| Diluted Earnings Per Share | $ | 1.11 | $ | 0.98 | $ | 2.13 | $ | 1.91 | ||||||||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | |||||||||||||||||||||||||||||||
| Quarter Ended June 30, 2017 | Year to Date Period Ended June 30, 2017 | Year to Date Period Ended June 30, 2016 | |||||||||||||||||||||||||||||
|
Average Balance (QTD) |
Average Balance (YTD) |
Average Balance (YTD) | |||||||||||||||||||||||||||||
|
Average Yield/Rate |
Average Yield/Rate |
Average Yield/Rate | |||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | Interest | Interest | Interest | ||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||||||||||||
| Interest-bearing balances due from banks | $ | 1,947 | $ | 4 | 0.82 | % | $ | 3,572 | $ | 6 | 0.34 | % | $ | 2,015 | $ | 3 | 0.30 | % | |||||||||||||
| Securities (4) | |||||||||||||||||||||||||||||||
| U.S. Government securities | 1,475,530 | 7,963 | 2.16 | % | 1,477,512 | 15,621 | 2.13 | % | 1,461,423 | 15,549 | 2.14 | % | |||||||||||||||||||
| Trading securities | 0 | 0 | 0.00 | % | 0 | 0 | 0.00 | % | 7,084 | 158 | 4.49 | % | |||||||||||||||||||
| State and municipal (5) | 102,488 | 859 | 3.37 | % | 101,598 | 1,701 | 3.38 | % | 98,562 | 1,678 | 3.42 | % | |||||||||||||||||||
| Other securities (5) | 3,603 | 32 | 3.56 | % | 3,608 | 64 | 3.58 | % | 3,664 | 61 | 3.35 | % | |||||||||||||||||||
| Total securities | 1,581,621 | 8,854 | 2.25 | % | 1,582,718 | 17,386 | 2.22 | % | 1,570,733 | 17,446 | 2.23 | % | |||||||||||||||||||
| FHLBNY and FRB stock | 40,731 | 463 | 4.56 | % | 39,426 | 932 | 4.77 | % | 29,708 | 615 | 4.16 | % | |||||||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 4,346,354 | 48,099 | 4.44 | % | 4,305,304 | 93,772 | 4.39 | % | 3,838,211 | 83,713 | 4.39 | % | |||||||||||||||||||
| Total interest-earning assets | 5,970,653 | 57,420 | 3.86 | % | 5,931,020 | 112,096 | 3.81 | % | 5,440,667 | 101,777 | 3.76 | % | |||||||||||||||||||
| Other assets | 359,194 | 354,842 | 345,662 | ||||||||||||||||||||||||||||
Total assets | 6,329,847 | 6,285,862 | 5,786,329 | ||||||||||||||||||||||||||||
| LIABILITIES & EQUITY | |||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,696,258 | 1,203 | 0.18 | % | 2,680,639 | 2,265 | 0.17 | % | 2,532,290 | 1,938 | 0.15 | % | |||||||||||||||||||
| Time deposits | 865,219 | 1,745 | 0.81 | % | 867,571 | 3,471 | 0.81 | % | 879,479 | 3,347 | 0.77 | % | |||||||||||||||||||
| Total interest-bearing deposits | 3,561,477 | 2,948 | 0.33 | % | 3,548,210 | 5,736 | 0.33 | % | 3,411,769 | 5,285 | 0.31 | % | |||||||||||||||||||
| Federal funds purchased & securities sold under | |||||||||||||||||||||||||||||||
| agreements to repurchase | 61,233 | 43 | 0.29 | % | 69,560 | 151 | 0.44 | % | 112,639 | 1,310 | 2.34 | % | |||||||||||||||||||
| Other borrowings | 835,573 | 2,794 | 1.34 | % | 813,477 | 5,118 | 1.27 | % | 543,256 | 3,003 | 1.11 | % | |||||||||||||||||||
| Trust preferred debentures | 16,577 | 256 | 6.19 | % | 20,063 | 623 | 6.26 | % | 37,545 | 1,183 | 6.33 | % | |||||||||||||||||||
| Total interest-bearing liabilities | 4,474,860 | 6,041 | 0.54 | % | 4,451,310 | 11,628 | 0.53 | % | 4,105,209 | 10,781 | 0.53 | % | |||||||||||||||||||
| Noninterest bearing deposits | 1,219,803 | 1,204,272 | 1,080,375 | ||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 62,443 | 65,915 | 64,946 | ||||||||||||||||||||||||||||
| Total liabilities | 5,757,106 | 5,721,497 | 5,250,530 | ||||||||||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 571,271 | 562,896 | 534,314 | ||||||||||||||||||||||||||||
| Noncontrolling interest | 1,470 | 1,469 | 1,485 | ||||||||||||||||||||||||||||
| Total equity | 572,741 | 564,365 | 535,799 | ||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 6,329,847 | $ | 6,285,862 | $ | 5,786,329 | |||||||||||||||||||||||||
| Interest rate spread | 3.32 | % | 3.28 | % | 3.23 | % | |||||||||||||||||||||||||
| Net interest income/margin on earning assets | 51,379 | 3.45 | % | 100,468 | 3.42 | % | 90,996 | 3.36 | % | ||||||||||||||||||||||
| Tax Equivalent Adjustment | (1,078 | ) | (2,133 | ) | (2,051 | ) | |||||||||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 50,301 | $ | 98,335 | $ | 88,945 | |||||||||||||||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) | |||||||||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | |||||||||||||||||||||||
| Jun-17 | Mar-17 | Dec-16 | Sep-16 | Jun-16 | Dec-16 | ||||||||||||||||||||
| Period End Balance Sheet | |||||||||||||||||||||||||
| Securities | $ | 1,564,865 | $ | 1,569,068 | $ | 1,571,657 | $ | 1,515,761 | $ | 1,564,080 | $ | 1,571,657 | |||||||||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 4,070,755 | 3,922,413 | 3,863,922 | 3,672,539 | 3,551,628 | 3,863,922 | |||||||||||||||||||
| Acquired loans and leases (3) | 347,841 | 375,380 | 394,111 | 417,008 | 426,485 | 394,111 | |||||||||||||||||||
| Allowance for loan and lease losses | 37,157 | 36,166 | 35,755 | 34,112 | 33,125 | 35,755 | |||||||||||||||||||
| Total assets | 6,415,012 | 6,280,047 | 6,236,756 | 6,102,215 | 5,924,906 | 6,236,756 | |||||||||||||||||||
| Total deposits | 4,750,722 | 4,850,585 | 4,625,139 | 4,690,300 | 4,469,721 | 4,625,139 | |||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 50,360 | 70,716 | 69,062 | 77,218 | 97,180 | 69,062 | |||||||||||||||||||
| Other borrowings | 952,035 | 717,285 | 884,815 | 671,000 | 700,026 | 884,815 | |||||||||||||||||||
| Trust preferred debentures | 16,605 | 16,562 | 37,681 | 37,638 | 37,595 | 37,681 | |||||||||||||||||||
| Total common equity | 575,428 | 562,064 | 547,953 | 559,640 | 552,918 | 547,953 | |||||||||||||||||||
| Total equity | 576,915 | 563,518 | 549,405 | 561,190 | 554,435 | 549,405 | |||||||||||||||||||
| Average Balance Sheet | |||||||||||||||||||||||||
| Average earning assets | $ | 5,970,653 | $ | 5,890,945 | $ | 5,707,121 | $ | 5,577,885 | $ | 5,492,913 | $ | 5,542,137 | |||||||||||||
| Average assets | 6,329,847 | 6,241,388 | 6,074,973 | 5,942,260 | 5,842,387 | 5,898,080 | |||||||||||||||||||
| Average interest-bearing liabilities | 4,474,860 | 4,427,501 | 4,237,126 | 4,168,879 | 4,143,031 | 4,154,374 | |||||||||||||||||||
| Average equity | 572,741 | 555,893 | 559,106 | 557,281 | 543,283 | 547,057 | |||||||||||||||||||
| Share data | |||||||||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,944,934 | 14,900,938 | 14,862,189 | 14,829,222 | 14,798,515 | 14,812,712 | |||||||||||||||||||
| Weighted average shares outstanding (diluted) (10) | 15,066,861 | 15,042,614 | 15,014,221 | 14,965,233 | 14,917,206 | 14,936,231 | |||||||||||||||||||
| Period-end shares outstanding | 15,189,453 | 15,181,198 | 15,135,906 | 15,055,954 | 15,035,369 | 15,135,906 | |||||||||||||||||||
| Common equity book value per share | $ | 37.88 | $ | 37.02 | $ | 36.20 | $ | 37.17 | $ | 36.77 | $ | 36.20 | |||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 31.18 | $ | 30.28 | $ | 29.38 | $ | 30.28 | $ | 29.82 | $ | 29.38 | |||||||||||||
| Income Statement | |||||||||||||||||||||||||
| Net interest income | $ | 50,301 | $ | 48,034 | $ | 46,374 | $ | 45,317 | $ | 44,907 | $ | 180,636 | |||||||||||||
| Provision for loan/lease losses | 976 | 769 | 1,706 | 782 | 978 | 4,321 | |||||||||||||||||||
| Noninterest income | 17,450 | 17,240 | 16,316 | 17,905 | 17,084 | 68,808 | |||||||||||||||||||
| Noninterest expense | 41,568 | 41,368 | 39,389 | 40,324 | 39,388 | 158,607 | |||||||||||||||||||
| Income tax expense (10) | 8,248 | 7,388 | 6,444 | 6,945 | 6,760 | 27,045 | |||||||||||||||||||
| Net income attributable to Tompkins Financial Corporation (10) | 16,926 | 15,717 | 15,118 | 15,138 | 14,833 | 59,340 | |||||||||||||||||||
| Noncontrolling interests | 33 | 32 | 33 | 33 | 32 | 131 | |||||||||||||||||||
| Basic earnings per share (8) | $ | 1.11 | $ | 1.04 | $ | 1.00 | $ | 1.01 | $ | 0.99 | $ | 3.94 | |||||||||||||
| Diluted earnings per share (8) (10) | $ | 1.11 | $ | 1.03 | $ | 0.99 | $ | 1.00 | $ | 0.98 | $ | 3.91 | |||||||||||||
| Nonperforming Assets | |||||||||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 14,284 | $ | 13,786 | $ | 14,300 | $ | 11,554 | $ | 11,008 | $ | 14,300 | |||||||||||||
| Acquired nonaccrual loans and leases | 2,903 | 3,356 | 4,741 | 4,559 | 4,831 | 4,741 | |||||||||||||||||||
| Originated loans and leases 90 days past due and accruing | 639 | 0 | - | 35 | 89 | 0 | |||||||||||||||||||
| Troubled debt restructurings not included above | 2,980 | 2,948 | 2,631 | 2,148 | 2,172 | 2,631 | |||||||||||||||||||
| Total nonperforming loans and leases | 20,806 | 20,090 | 21,672 | 18,296 | 18,100 | 21,672 | |||||||||||||||||||
| OREO | 2,331 | 2,520 | 908 | 1,008 | 1,001 | 908 | |||||||||||||||||||
| Total nonperforming assets | $ | 23,137 | $ | 22,610 | $ | 22,580 | $ | 19,304 | $ | 19,101 | $ | 22,580 | |||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | |||||||||||||||||||||||||
| Quarter-Ended | Year-Ended | ||||||||||||||||||||||||
Delinquency - Originated loan and lease portfolio | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Jun-16 | Dec-16 | |||||||||||||||||||
| Loans and leases 30-89 days past due and | |||||||||||||||||||||||||
| accruing (2) | $ | 6,188 | $ | 5,462 | $ | 6,694 | $ | 4,551 | $ | 4,464 | $ | 6,694 | |||||||||||||
| Loans and leases 90 days past due and accruing (2) | 639 | 0 | - | 35 | 89 | 0 | |||||||||||||||||||
| Total originated loans and leases past due and accruing (2) | 6,827 | 5,462 | 6,694 | 4,586 | 4,553 | 6,694 | |||||||||||||||||||
| Delinquency - Acquired loan and lease portfolio | |||||||||||||||||||||||||
| Loans 30-89 days past due and accruing (3)(7) | $ | 751 | $ | 907 | $ | 2,553 | $ | 1,069 | $ | 1,750 | $ | 2,553 | |||||||||||||
| Loans 90 days or more past due | 2,581 | 2,701 | 2,557 | 2,555 | 1,861 | 2,557 | |||||||||||||||||||
| Total acquired loans and leases past due and accruing | 3,332 | 3,608 | 5,110 | 3,624 | 3,611 | 5,110 | |||||||||||||||||||
| Total loans and leases past due and accruing | $ | 10,159 | $ | 9,070 | $ | 11,804 | $ | 8,210 | $ | 8,164 | $ | 11,804 | |||||||||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | |||||||||||||||||||||||||
| Balance at beginning of period | $ | 35,915 | $ | 35,598 | $ | 33,956 | $ | 32,968 | $ | 31,981 | $ | 31,312 | |||||||||||||
| Provision for loan and lease losses | 846 | 602 | 1,419 | 868 | 978 | 4,137 | |||||||||||||||||||
| Net loan and lease (recoveries) charge-offs | (199 | ) | 285 | (223 | ) | (120 | ) | (9 | ) | (149 | ) | ||||||||||||||
| Allowance for loan and lease losses (originated | 36,960 | 35,915 | 35,598 | 33,956 | 32,968 | 35,598 | |||||||||||||||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | |||||||||||||||||||||||||
| Balance at beginning of period | $ | 251 | $ | 157 | $ | 156 | $ | 157 | $ | 549 | $ | 692 | |||||||||||||
| Provision (credit) for loan and lease losses | 130 | 167 | 287 | (86 | ) | 0 | 184 | ||||||||||||||||||
| Net loan and lease (recoveries) charge-offs | 184 | 73 | 286 | (85 | ) | 392 | 719 | ||||||||||||||||||
| Allowance for loan and lease losses (acquired | |||||||||||||||||||||||||
| loan portfolio) - balance at end of period | 197 | 251 | 157 | 156 | 157 | 157 | |||||||||||||||||||
| Total allowance for loan and lease losses | $ | 37,157 | $ | 36,166 | $ | 35,755 | $ | 34,112 | $ | 33,125 | $ | 35,755 | |||||||||||||
| Loan Classification - Originated Portfolio | |||||||||||||||||||||||||
| Special Mention | $ | 38,488 | $ | 18,861 | $ | 20,485 | $ | 27,215 | $ | 20,639 | $ | 20,485 | |||||||||||||
| Substandard | 19,532 | 20,909 | 20,316 | 18,121 | 16,462 | 20,316 | |||||||||||||||||||
| Loan Classification - Acquired Portfolio | |||||||||||||||||||||||||
| Special Mention | 547 | 519 | 526 | 540 | 550 | 526 | |||||||||||||||||||
| Substandard | 8,796 | 9,628 | 13,141 | 14,000 | 13,975 | 13,141 | |||||||||||||||||||
| Loan Classifications - Total Portfolio | |||||||||||||||||||||||||
| Special Mention | 39,035 | 19,380 | 21,011 | 27,755 | 21,189 | 21,011 | |||||||||||||||||||
| Substandard | 28,328 | 30,537 | 33,457 | 32,121 | 30,437 | 33,457 | |||||||||||||||||||
| RATIO ANALYSIS | |||||||||||||||||||||||||
| Credit Quality | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Jun-16 | Dec-16 | |||||||||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.47 | % | 0.47 | % | 0.51 | % | 0.45 | % | 0.45 | % | 0.51 | % | |||||||||||||
| Nonperforming assets/total assets | 0.36 | % | 0.36 | % | 0.36 | % | 0.32 | % | 0.32 | % | 0.36 | % | |||||||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.91 | % | 0.92 | % | 0.92 | % | 0.92 | % | 0.93 | % | 0.92 | % | |||||||||||||
| Allowance/nonperforming loans and leases | 178.59 | % | 180.02 | % | 164.98 | % | 186.45 | % | 183.01 | % | 164.98 | % | |||||||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | 0.00 | % | 0.03 | % | 0.01 | % | (0.02 | %) | 0.04 | % | 0.01 | % | |||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | |||||||||||||||||||||||||
Quarter-Ended | Year-Ended | ||||||||||||||||||||||||
Capital Adequacy (period-end) | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Jun-16 | Dec-16 | |||||||||||||||||||
| Tier 1 capital / average assets * | 8.43 | % | 8.36 | % | 8.41 | % | 8.83 | % | 8.79 | % | 8.41 | % | |||||||||||||
| Total capital / risk-weighted assets * | 12.45 | % | 12.41 | % | 12.22 | % | 12.97 | % | 12.95 | % | 12.22 | % | |||||||||||||
| Profitability | |||||||||||||||||||||||||
| Return on average assets * (10) | 1.07 | % | 1.02 | % | 0.99 | % | 1.01 | % | 1.02 | % | 1.01 | % | |||||||||||||
| Return on average equity * (10) | 11.85 | % | 11.47 | % | 10.76 | % | 10.81 | % | 10.98 | % | 10.85 | % | |||||||||||||
| Net interest margin (TE) * | 3.45 | % | 3.38 | % | 3.30 | % | 3.31 | % | 3.36 | % | 3.33 | % | |||||||||||||
| * Quarterly ratios have been annualized | |||||||||||||||||||||||||
| 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. | |
| Non-GAAP Disclosure - Tangible Book Value Per Share | ||||||||||||||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||||
| Jun-17 | Mar-17 | Dec-16 | Sep-16 | Jun-16 | Dec-16 | |||||||||||||||
| Total common equity | $ | 575,428 | $ | 562,064 | $ | 547,953 | $ | 559,640 | $ | 552,918 | $ | 547,953 | ||||||||
| Less: Goodwill and intangibles (9) | 101,840 | 102,326 | 103,214 | 103,732 | 104,636 | 103,214 | ||||||||||||||
| Tangible common equity | 473,588 | 459,738 | 444,739 | 455,908 | 448,282 | 444,739 | ||||||||||||||
| Ending shares outstanding | 15,189,453 | 15,181,198 | 15,135,906 | 15,055,954 | 15,035,369 | 15,135,906 | ||||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 31.18 | $ | 30.28 | $ | 29.38 | $ | 30.28 | $ | 29.82 | $ | 29.38 | ||||||||
| (1) Federal Reserve peer ratio as of March 31, 2017, 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. |
| (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, 2016. |
| (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)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. |
| (9) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables. |
| (10) The third quarter, second quarter, and first quarter of 2016 information is revised to reflect the impact of the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting". The early adoption resulted in $847,000, $274,000, $262,000, and $71,000 of excess benefits recognized within "income tax expense" during the three months ended December 31, September 30, June 30, and March 31, 2016, respectively. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170721005123/en/
Contacts:
Stephen S. Romaine, President & CEO
Francis
M. Fetsko, Executive VP, CFO & COO
888-503-5753
