Tompkins Financial Corporation (NYSE American:TMP)
Tompkins Financial Corporation reported diluted earnings per share of $1.14 for the third quarter of 2017, which represents an increase of 14.0% compared to the $1.00 reported in the third quarter of 2016. Net income for the third quarter of 2017 was $17.4 million, up 14.9% compared to the $15.1 million reported in the third quarter of 2016.
Year-to-date diluted earnings per share of $3.27 for the first nine months of 2017 represents an increase of 12.0% over the same period in 2016. Year-to-date net income was $50.0 million through the first nine months of 2017, an increase of 13.2% over the same period in 2016.
President and CEO, Stephen S. Romaine said, “We are extremely pleased with our earnings performance as the reported results reflect the best third quarter and best year-to-date performance through the first nine months of any year in our Company’s history. A key growth driver for the quarter and year-to-date periods has been the improvement in net interest income, which has benefited from solid growth trends in loans and deposits.”
SELECTED HIGHLIGHTS FOR THIRD QUARTER AND YEAR TO DATE:
- Best earnings performance for the first nine months of any year in our Company’s history. Also, the best third quarter earnings performance in our Company’s history.
- Net interest income for the quarter was up 12.5% compared to the third quarter of 2016, and up year-to-date 11.2% compared to the same period in 2016.
- Net interest margin of 3.40% for the quarter and 3.41% for the year-to-date, are both improved from the same periods in 2016.
- Total loans of $4.5 billion were up 9.8% over the same period in 2016; and are up 5.5% over December 31, 2016.
- Total deposits of $4.9 billion reflect an increase of 5.4% over the same period last year, and are up 6.9% from December 31, 2016.
- Third quarter return on average equity was 11.77% compared to 10.81% for the same quarter last year.
NET INTEREST INCOME
Net interest income of $51.0 million for the third quarter of 2017 increased by $5.7 million, or 12.5% compared to the same period in 2016. For the year-to-date period, net interest income was $149.3 million, up $15.1 million, or 11.2% from the same nine-month period in 2016.
Growth in net interest income for the third quarter of 2017 over the third quarter of 2016 was largely driven by $430.1 million of growth in average loans over the third quarter of 2016, an increase of 10.7%. Average deposits increased $249.1 million, or 5.5% compared to the same period in 2016. Included in the increase in average deposits was a $165.7 million or 14.4% increase in noninterest bearing deposits. For the third quarter of 2017, net interest margin measured 3.40%, compared to 3.45% for the quarter ended June 30, 2017, and 3.31% in the third quarter of 2016.
NONINTEREST INCOME
Noninterest income represented 25.2% of total revenues in the third quarter of 2017, compared to 28.3% in the same period in 2016, and 25.8% for the most recent prior quarter. Noninterest income of $17.2 million was down $703,000, or 3.9% compared to the same period last year. The third quarter of 2017 included a loss on sales of available for sale securities of approximately $423,000 compared to a gain of $455,000 reported in the third quarter of 2016. Sales of available-for-sale securities are generally the result of general investment security portfolio maintenance and interest rate risk management.
Year-to-date noninterest income of $51.9 million was in line with the previous year noninterest income of $52.5 million.
NONINTEREST EXPENSE
Noninterest expense was $41.9 million for the third quarter of 2017, up $1.6 million, or 3.9%, over the third quarter of 2016. For the year-to-date period, noninterest expense was $124.8 million, up $5.6 million, or 4.7%, from the same period in 2016. The increase in noninterest expense for both the third quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $345,000 of expense related to OREO properties held by the bank.
ASSET QUALITY
Asset quality trends remained strong in the third quarter of 2017. Nonperforming assets represented 0.37% of total assets at September 30, 2017, compared to 0.36% at December 31, 2016, and 0.32% at September 30, 2016. Though credit quality metrics showed some modest deterioration during the quarter, overall credit quality remains strong and compares favorably to our peers. Nonperforming asset levels as a percentage of total assets of 0.37% compares favorably to the most recent Federal Reserve Board Peer Group Average1 of 0.51%.
Provision for loan and lease losses was $402,000 for the third quarter of 2017, down $380,000 compared to the third quarter of 2016. Net recoveries for the third quarter of 2017 were $479,000 compared to net recoveries of $205,000 reported in the third quarter of 2016.
The Company’s allowance for originated loan and lease losses totaled $37.9 million at September 30, 2017, and represented 0.91% of total originated loans and leases at September 30, 2017, relatively unchanged from the most recent prior quarter and the third quarter of 2016. The total allowance represented 170.12% of total nonperforming loans and leases at September 30, 2017, compared to 164.98% at December 31, 2016, and 186.45% at September 30, 2016.
The level of Special Mention originated loans increased during the quarter to $50.4 million, up from $27.2 million a year ago, and up from $38.5 million at June 30, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower average milk prices in 2016, which had an unfavorable impact on operations of our agricultural customers. Milk prices have rebounded in 2017. As of September 30, 2017, payments on all loans in our agricultural portfolio were current. Of the $50.4 million of loans currently listed as Special Mention, 94.3% of the dollar amount outstanding was current on their payments as of September 30, 2017.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.50% at September 30, 2017, compared to 8.41% reported at December 31, 2016. Total capital to risk-weighted assets at September 30, 2017 was 12.52%, compared to 12.22% 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 | 09/30/2017 | 12/31/2016 | ||||
| Cash and noninterest bearing balances due from banks | $ | 122,213 | $ | 62,074 | ||
| Interest bearing balances due from banks | 7,199 | 1,880 | ||||
| Cash and Cash Equivalents | 129,412 | 63,954 | ||||
| Available-for-sale securities, at fair value (amortized cost of $1,413,238 at September 30, | ||||||
| 2017 and $1,442,724 at December 31, 2016) | 1,406,231 | 1,429,538 | ||||
| Held-to-maturity securities, at amortized cost (fair value of $142,007 at September 30, 2017 | ||||||
| and $142,832 at December 31, 2016) | 139,968 | 142,119 | ||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 4,167,254 | 3,863,922 | ||||
| Acquired loans (3) | 323,259 | 394,111 | ||||
| Less: Allowance for loan and lease losses | 38,038 | 35,755 | ||||
| Net Loans and Leases | 4,452,475 | 4,222,278 | ||||
| Federal Home Loan Bank and other stock | 40,310 | 43,133 | ||||
| Bank premises and equipment, net | 79,940 | 70,016 | ||||
| Corporate owned life insurance | 79,548 | 77,905 | ||||
| Goodwill | 92,291 | 92,623 | ||||
| Other intangible assets, net | 9,750 | 11,349 | ||||
| Accrued interest and other assets | 94,135 | 83,841 | ||||
| Total Assets | $ | 6,524,060 | $ | 6,236,756 | ||
| LIABILITIES | ||||||
| Deposits: | ||||||
| Interest bearing: | ||||||
| Checking, savings and money market | 2,747,345 | 2,518,318 | ||||
| Time | 786,301 | 870,788 | ||||
| Noninterest bearing | 1,410,298 | 1,236,033 | ||||
| Total Deposits | 4,943,944 | 4,625,139 | ||||
| Federal funds purchased and securities sold under agreements to repurchase | 73,874 | 69,062 | ||||
| Other borrowings | 834,574 | 884,815 | ||||
| Trust preferred debentures | 16,648 | 37,681 | ||||
| Other liabilities | 65,152 | 70,654 | ||||
| Total Liabilities | $ | 5,934,192 | $ | 5,687,351 | ||
| EQUITY | ||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: | ||||||
| 15,238,354 at September 30, 2017; and 15,171,816 at December 31, 2016 | 1,524 | 1,517 | ||||
| Additional paid-in capital | 364,150 | 357,414 | ||||
| Retained earnings | 259,738 | 230,182 | ||||
| Accumulated other comprehensive loss | (32,715) | (37,109) | ||||
| Treasury stock, at cost – 119,142 shares at September 30, 2017, and 117,997 shares | ||||||
| at December 31, 2016 | (4,348) | (4,051) | ||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 588,349 | 547,953 | ||||
| Noncontrolling interests | 1,519 | 1,452 | ||||
| Total Equity | $ | 589,868 | $ | 549,405 | ||
| Total Liabilities and Equity | $ | 6,524,060 | $ | 6,236,756 | ||
| TOMPKINS FINANCIAL CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (In thousands, except per share data) (Unaudited) | 09/30/2017 | 09/30/2016 | 09/30/2017 | 09/30/2016 | ||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||
| Loans | $ | 48,949 | $ | 43,057 | $ | 141,257 | $ | 125,378 | ||||
| Due from banks | 9 | 2 | 15 | 5 | ||||||||
| Trading securities | 0 | 62 | 0 | 220 | ||||||||
| Available-for-sale securities | 7,415 | 6,683 | 22,384 | 21,498 | ||||||||
| Held-to-maturity securities | 865 | 898 | 2,613 | 2,712 | ||||||||
| Federal Home Loan Bank and other stock | 534 | 375 | 1,466 | 990 | ||||||||
| Total Interest and Dividend Income | 57,772 | 51,077 | 167,735 | 150,803 | ||||||||
| INTEREST EXPENSE | ||||||||||||
| Time certificates of deposits of $250,000 or more | 457 | 402 | 1,364 | 1,214 | ||||||||
| Other deposits | 2,679 | 2,291 | 7,508 | 6,764 | ||||||||
| Federal funds purchased and securities sold under agreements to | ||||||||||||
| repurchase | 44 | 630 | 195 | 1,940 | ||||||||
| Trust preferred debentures | 265 | 600 | 888 | 1,783 | ||||||||
| Other borrowings | 3,327 | 1,837 | 8,445 | 4,840 | ||||||||
| Total Interest Expense | 6,772 | 5,760 | 18,400 | 16,541 | ||||||||
| Net Interest Income | 51,000 | 45,317 | 149,335 | 134,262 | ||||||||
| Less: Provision for loan and lease losses | 402 | 782 | 2,147 | 2,615 | ||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 50,598 | 44,535 | 147,188 | 131,647 | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Insurance commissions and fees | 7,682 | 7,729 | 21,892 | 22,808 | ||||||||
| Investment services income | 3,862 | 3,735 | 11,544 | 11,355 | ||||||||
| Service charges on deposit accounts | 2,125 | 2,203 | 6,337 | 6,559 | ||||||||
| Card services income | 2,190 | 2,037 | 6,875 | 5,980 | ||||||||
| Mark-to-market loss on trading securities | 0 | (76) | 0 | (182) | ||||||||
| Mark-to-market gain on liabilities held at fair value | 0 | 77 | 0 | 227 | ||||||||
| Other income | 1,766 | 1,745 | 5,667 | 4,819 | ||||||||
| (Loss)/gain on sale of available-for-sale securities | (423) | 455 | (423) | 926 | ||||||||
| Total Noninterest Income | 17,202 | 17,905 | 51,892 | 52,492 | ||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and wages | 20,931 | 19,801 | 60,868 | 58,123 | ||||||||
| Pension and other employee benefits | 5,344 | 5,218 | 16,195 | 15,435 | ||||||||
| Net occupancy expense of premises | 3,064 | 3,046 | 9,965 | 9,193 | ||||||||
| Furniture and fixture expense | 1,585 | 1,707 | 4,819 | 4,973 | ||||||||
| FDIC insurance | 620 | 783 | 1,775 | 2,388 | ||||||||
| Amortization of intangible assets | 481 | 524 | 1,459 | 1,572 | ||||||||
| Other operating expense | 9,858 | 9,245 | 29,738 | 27,534 | ||||||||
| Total Noninterest Expenses | 41,883 | 40,324 | 124,819 | 119,218 | ||||||||
| Income Before Income Tax Expense | 25,917 | 22,116 | 74,261 | 64,921 | ||||||||
| Income Tax Expense | 8,491 | 6,945 | 24,127 | 20,601 | ||||||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 17,426 | 15,171 | 50,134 | 44,320 | ||||||||
| Less: Net income attributable to noncontrolling interests | 32 | 33 | 97 | 98 | ||||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 17,394 | $ | 15,138 | $ | 50,037 | $ | 44,222 | ||||
| Basic Earnings Per Share | $ | 1.14 | $ | 1.01 | $ | 3.30 | $ | 2.94 | ||||
| Diluted Earnings Per Share | $ | 1.14 | $ | 1.00 | $ | 3.27 | $ | 2.92 | ||||
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||||||||||
| Quarter Ended | Year to Date Period Ended | Year to Date Period Ended | ||||||||||||||||||||||
| September 30, 2017 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
| 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 | $ | 3,498 | $ | 9 | 1.02% | $ | 3,547 | $ | 15 | 0.57% | $ | 1,968 | $ | 5 | 0.34% | |||||||||
| Securities (4) | ||||||||||||||||||||||||
| U.S. Government securities | 1,474,389 | 7,730 | 2.08% | 1,476,459 | 23,352 | 2.11% | 1,447,450 | 22,608 | 2.09% | |||||||||||||||
| Trading securities | 0 | 0 | 0.00% | 0 | 0 | 0.00% | 6,536 | 220 | 4.50% | |||||||||||||||
| State and municipal (5) | 100,060 | 851 | 3.37% | 101,080 | 2,552 | 3.38% | 97,906 | 2,488 | 3.39% | |||||||||||||||
| Other securities (5) | 3,592 | 33 | 3.64% | 3,602 | 96 | 3.56% | 3,653 | 91 | 3.33% | |||||||||||||||
| Total securities | 1,578,041 | 8,614 | 2.17% | 1,581,141 | 26,000 | 2.20% | 1,555,545 | 25,407 | 2.18% | |||||||||||||||
| FHLBNY and FRB stock | 45,994 | 534 | 4.61% | 41,639 | 1,466 | 4.71% | 31,767 | 990 | 4.16% | |||||||||||||||
| Total loans and leases, net of unearned income (5)(6) | 4,444,736 | 49,725 | 4.44% | 4,352,292 | 143,497 | 4.41% | 3,897,461 | 127,484 | 4.37% | |||||||||||||||
| Total interest-earning assets | 6,072,269 | 58,882 | 3.85% | 5,978,619 | 170,978 | 3.82% | 5,486,741 | 153,886 | 3.75% | |||||||||||||||
| Other assets | 358,228 | 355,983 | 351,944 | |||||||||||||||||||||
| Total assets | 6,430,497 | 6,334,602 | 5,838,685 | |||||||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||||||||
| Interest bearing checking, savings, & money market | 2,632,467 | 1,355 | 0.20% | 2,664,405 | 3,620 | 0.18% | 2,514,159 | 2,958 | 0.16% | |||||||||||||||
| Time deposits | 800,769 | 1,781 | 0.88% | 845,058 | 5,252 | 0.83% | 876,947 | 5,020 | 0.76% | |||||||||||||||
| Total interest-bearing deposits | 3,433,236 | 3,136 | 0.36% | 3,509,463 | 8,872 | 0.34% | 3,391,106 | 7,978 | 0.31% | |||||||||||||||
| Federal funds purchased & securities sold under | ||||||||||||||||||||||||
| agreements to repurchase | 58,397 | 44 | 0.30% | 65,798 | 195 | 0.40% | 108,189 | 1,940 | 2.40% | |||||||||||||||
| Other borrowings | 955,353 | 3,327 | 1.38% | 861,289 | 8,445 | 1.31% | 589,726 | 4,840 | 1.10% | |||||||||||||||
| Trust preferred debentures | 16,620 | 265 | 6.33% | 18,903 | 888 | 6.28% | 37,567 | 1,783 | 6.34% | |||||||||||||||
| Total interest-bearing liabilities | 4,463,606 | 6,772 | 0.60% | 4,455,453 | 18,400 | 0.55% | 4,126,588 | 16,541 | 0.54% | |||||||||||||||
| Noninterest bearing deposits | 1,313,773 | 1,241,173 | 1,103,108 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 66,447 | 66,094 | 65,978 | |||||||||||||||||||||
| Total liabilities | 5,843,826 | 5,762,720 | 5,295,674 | |||||||||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 585,171 | 570,403 | 541,510 | |||||||||||||||||||||
| Noncontrolling interest | 1,500 | 1,479 | 1,501 | |||||||||||||||||||||
| Total equity | 586,671 | 571,882 | 543,011 | |||||||||||||||||||||
| Total liabilities and equity | $ | 6,430,497 | $ | 6,334,602 | $ | 5,838,685 | ||||||||||||||||||
| Interest rate spread | 3.25% | 3.27% | 3.21% | |||||||||||||||||||||
| Net interest income/margin on earning assets | 52,110 | 3.40% | 152,578 | 3.41% | 137,345 | 3.34% | ||||||||||||||||||
| Tax Equivalent Adjustment | (1,110) | (3,243) | (3,083) | |||||||||||||||||||||
| Net interest income per consolidated financial statements | $ | 51,000 | $ | 149,335 | $ | 134,262 | ||||||||||||||||||
| Tompkins Financial Corporation - Summary Financial Data (Unaudited) | ||||||||||||||||||
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||||||||
| Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Dec-16 | |||||||||||||
| Period End Balance Sheet | ||||||||||||||||||
| Securities | $ | 1,546,199 | $ | 1,564,865 | $ | 1,569,068 | $ | 1,571,657 | $ | 1,515,761 | $ | 1,571,657 | ||||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 4,167,254 | 4,070,755 | 3,922,413 | 3,863,922 | 3,672,539 | 3,863,922 | ||||||||||||
| Acquired loans and leases (3) | 323,259 | 347,841 | 375,380 | 394,111 | 417,008 | 394,111 | ||||||||||||
| Allowance for loan and lease losses | 38,038 | 37,157 | 36,166 | 35,755 | 34,112 | 35,755 | ||||||||||||
| Total assets | 6,524,060 | 6,415,012 | 6,280,047 | 6,236,756 | 6,102,215 | 6,236,756 | ||||||||||||
| Total deposits | 4,943,944 | 4,750,722 | 4,850,585 | 4,625,139 | 4,690,300 | 4,625,139 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 73,874 | 50,360 | 70,716 | 69,062 | 77,218 | 69,062 | ||||||||||||
| Other borrowings | 834,574 | 952,035 | 717,285 | 884,815 | 671,000 | 884,815 | ||||||||||||
| Trust preferred debentures | 16,648 | 16,605 | 16,562 | 37,681 | 37,638 | 37,681 | ||||||||||||
| Total common equity | 588,349 | 575,428 | 562,064 | 547,953 | 559,640 | 547,953 | ||||||||||||
| Total equity | 589,868 | 576,915 | 563,518 | 549,405 | 561,190 | 549,405 | ||||||||||||
| Average Balance Sheet | ||||||||||||||||||
| Average earning assets | $ | 6,072,269 | $ | 5,970,653 | $ | 5,890,945 | $ | 5,707,121 | $ | 5,577,885 | $ | 5,542,137 | ||||||
| Average assets | 6,430,497 | 6,329,847 | 6,241,388 | 6,074,973 | 5,942,260 | 5,898,080 | ||||||||||||
| Average interest-bearing liabilities | 4,463,606 | 4,474,860 | 4,427,501 | 4,237,126 | 4,168,879 | 4,154,374 | ||||||||||||
| Average equity | 586,671 | 572,741 | 555,893 | 559,106 | 557,281 | 547,057 | ||||||||||||
| Share data | ||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,966,231 | 14,944,934 | 14,900,938 | 14,862,189 | 14,829,222 | 14,812,712 | ||||||||||||
| Weighted average shares outstanding (diluted) (10) | 15,078,555 | 15,066,861 | 15,042,614 | 15,014,221 | 14,965,233 | 14,936,231 | ||||||||||||
| Period-end shares outstanding | 15,202,444 | 15,189,453 | 15,181,198 | 15,135,906 | 15,055,954 | 15,135,906 | ||||||||||||
| Common equity book value per share | $ | 38.70 | $ | 37.88 | $ | 37.02 | $ | 36.20 | $ | 37.17 | $ | 36.20 | ||||||
| Tangible book value per share (Non-GAAP) | $ | 32.03 | $ | 31.18 | $ | 30.28 | $ | 29.38 | $ | 30.28 | $ | 29.38 | ||||||
| Income Statement | ||||||||||||||||||
| Net interest income | $ | 51,000 | $ | 50,301 | $ | 48,034 | $ | 46,374 | $ | 45,317 | $ | 180,636 | ||||||
| Provision for loan/lease losses | 402 | 976 | 769 | 1,706 | 782 | 4,321 | ||||||||||||
| Noninterest income | 17,202 | 17,450 | 17,240 | 16,316 | 17,905 | 68,808 | ||||||||||||
| Noninterest expense | 41,883 | 41,568 | 41,368 | 39,389 | 40,324 | 158,607 | ||||||||||||
| Income tax expense (10) | 8,491 | 8,248 | 7,388 | 6,444 | 6,945 | 27,045 | ||||||||||||
| Net income attributable to Tompkins Financial Corporation (10) | 17,394 | 16,926 | 15,717 | 15,118 | 15,138 | 59,340 | ||||||||||||
| Noncontrolling interests | 32 | 33 | 32 | 33 | 33 | 131 | ||||||||||||
| Basic earnings per share (8) | $ | 1.14 | $ | 1.11 | $ | 1.04 | $ | 1.00 | $ | 1.01 | $ | 3.94 | ||||||
| Diluted earnings per share (8) (10) | $ | 1.14 | $ | 1.11 | $ | 1.03 | $ | 0.99 | $ | 1.00 | $ | 3.91 | ||||||
| Nonperforming Assets | ||||||||||||||||||
| Originated nonaccrual loans and leases | $ | 15,667 | $ | 14,284 | $ | 13,786 | $ | 14,300 | $ | 11,554 | $ | 14,300 | ||||||
| Acquired nonaccrual loans and leases | 3,152 | 2,903 | 3,356 | 4,741 | 4,559 | 4,741 | ||||||||||||
| Originated loans and leases 90 days past due and accruing | 0 | 639 | 0 | 0 | 35 | 0 | ||||||||||||
| Troubled debt restructurings not included above | 3,541 | 2,980 | 2,948 | 2,631 | 2,148 | 2,631 | ||||||||||||
| Total nonperforming loans and leases | 22,360 | 20,806 | 20,090 | 21,672 | 18,296 | 21,672 | ||||||||||||
| OREO | 2,030 | 2,331 | 2,520 | 908 | 1,008 | 908 | ||||||||||||
| Total nonperforming assets | $ | 24,390 | $ | 23,137 | $ | 22,610 | $ | 22,580 | $ | 19,304 | $ | 22,580 | ||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | ||||||||||||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||
| Delinquency - Originated loan and lease portfolio | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Dec-16 | ||||||||||||
| Loans and leases 30-89 days past due and | ||||||||||||||||||
| accruing (2) | $ | 5,567 | $ | 6,188 | $ | 5,462 | $ | 6,694 | $ | 4,551 | $ | 6,694 | ||||||
| Loans and leases 90 days past due and accruing (2) | 0 | 639 | 0 | 0 | 35 | 0 | ||||||||||||
| Total originated loans and leases past due and accruing (2) | 5,567 | 6,827 | 5,462 | 6,694 | 4,586 | 6,694 | ||||||||||||
| Delinquency - Acquired loan and lease portfolio | ||||||||||||||||||
| Loans 30-89 days past due and accruing (3)(7) | $ | 2,857 | $ | 751 | $ | 907 | $ | 2,553 | $ | 1,069 | $ | 2,553 | ||||||
| Loans 90 days or more past due | 1,306 | 2,581 | 2,701 | 2,557 | 2,555 | 2,557 | ||||||||||||
| Total acquired loans and leases past due and accruing | 4,163 | 3,332 | 3,608 | 5,110 | 3,624 | 5,110 | ||||||||||||
| Total loans and leases past due and accruing | $ | 9,730 | $ | 10,159 | $ | 9,070 | $ | 11,804 | $ | 8,210 | $ | 11,804 | ||||||
| Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||||||||
| Balance at beginning of period | $ | 36,960 | $ | 35,915 | $ | 35,598 | $ | 33,956 | $ | 32,968 | $ | 31,312 | ||||||
| Provision for loan and lease losses | 931 | 846 | 602 | 1,419 | 868 | 4,137 | ||||||||||||
| Net loan and lease (recoveries) charge-offs | (12) | (199) | 285 | (223) | (120) | (149) | ||||||||||||
| Allowance for loan and lease losses (originated | 37,903 | 36,960 | 35,915 | 35,598 | 33,956 | 35,598 | ||||||||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | ||||||||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||||||||
| Balance at beginning of period | $ | 197 | $ | 251 | $ | 157 | $ | 156 | $ | 157 | $ | 692 | ||||||
| Provision (credit) for loan and lease losses | (529) | 130 | 167 | 287 | (86) | 184 | ||||||||||||
| Net loan and lease (recoveries) charge-offs | (467) | 184 | 73 | 286 | (85) | 719 | ||||||||||||
| Allowance for loan and lease losses (acquired | ||||||||||||||||||
| loan portfolio) - balance at end of period | 135 | 197 | 251 | 157 | 156 | 157 | ||||||||||||
| Total allowance for loan and lease losses | $ | 38,038 | $ | 37,157 | $ | 36,166 | $ | 35,755 | $ | 34,112 | $ | 35,755 | ||||||
| Loan Classification - Originated Portfolio | ||||||||||||||||||
| Special Mention | $ | 50,423 | $ | 38,488 | $ | 18,861 | $ | 20,485 | $ | 27,215 | $ | 20,485 | ||||||
| Substandard | 20,532 | 19,532 | 20,909 | 20,316 | 18,121 | 20,316 | ||||||||||||
| Loan Classification - Acquired Portfolio | ||||||||||||||||||
| Special Mention | 539 | 547 | 519 | 526 | 540 | 526 | ||||||||||||
| Substandard | 8,193 | 8,796 | 9,628 | 13,141 | 14,000 | 13,141 | ||||||||||||
| Loan Classifications - Total Portfolio | ||||||||||||||||||
| Special Mention | 50,962 | 39,035 | 19,380 | 21,011 | 27,755 | 21,011 | ||||||||||||
| Substandard | 28,725 | 28,328 | 30,537 | 33,457 | 32,121 | 33,457 | ||||||||||||
| RATIO ANALYSIS | ||||||||||||||||||
| Credit Quality | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Dec-16 | ||||||||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.50% | 0.47% | 0.47% | 0.51% | 0.45% | 0.51% | ||||||||||||
| Nonperforming assets/total assets | 0.37% | 0.36% | 0.36% | 0.36% | 0.32% | 0.36% | ||||||||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.91% | 0.91% | 0.92% | 0.92% | 0.92% | 0.92% | ||||||||||||
| Allowance/nonperforming loans and leases | 170.12% | 178.59% | 180.02% | 164.98% | 186.45% | 164.98% | ||||||||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | (0.04%) | 0.00% | 0.03% | 0.01% | (0.02%) | 0.01% | ||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued | ||||||||||||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||
| Capital Adequacy (period-end) | Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Dec-16 | ||||||||||||
| Tier 1 capital / average assets * | 8.50% | 8.43% | 8.36% | 8.41% | 8.83% | 8.41% | ||||||||||||
| Total capital / risk-weighted assets * | 12.52% | 12.45% | 12.41% | 12.22% | 12.97% | 12.22% | ||||||||||||
| Profitability | ||||||||||||||||||
| Return on average assets * (10) | 1.07% | 1.07% | 1.02% | 0.99% | 1.01% | 1.01% | ||||||||||||
| Return on average equity * (10) | 11.77% | 11.85% | 11.47% | 10.76% | 10.81% | 10.85% | ||||||||||||
| Net interest margin (TE) * | 3.40% | 3.45% | 3.38% | 3.30% | 3.31% | 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 | |||||||||||||||||
| Sep-17 | Jun-17 | Mar-17 | Dec-16 | Sep-16 | Dec-16 | |||||||||||||
| Total common equity | $ | 588,349 | $ | 575,428 | $ | 562,064 | $ | 547,953 | $ | 559,640 | $ | 547,953 | ||||||
| Less: Goodwill and intangibles (9) | 101,360 | 101,840 | 102,326 | 103,214 | 103,732 | 103,214 | ||||||||||||
| Tangible common equity | 486,989 | 473,588 | 459,738 | 444,739 | 455,908 | 444,739 | ||||||||||||
| Ending shares outstanding | 15,202,444 | 15,189,453 | 15,181,198 | 15,135,906 | 15,055,954 | 15,135,906 | ||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 32.03 | $ | 31.18 | $ | 30.28 | $ | 29.38 | $ | 30.28 | $ | 29.38 | ||||||
_____________________________________________________________ |
| (1) Federal Reserve peer ratio as of June 30, 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 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 and $274,000 excess benefits recognized within "income tax expense" during the three months ended December 31, and September 30, 2016, respectively. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20171027005090/en/
Contacts:
Stephen S. Romaine, President & CEO
Francis
M. Fetsko, Executive VP, CFO & COO
888-503-5753
