Tompkins Financial Corporation Reports Fourth Quarter Earnings

ITHACA, N.Y.--()--Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported record diluted earnings per share of $3.48 for the year ended December 31, 2014, up from $3.46 per share reported in 2013. The Company reported diluted earnings per share of $0.85 for the fourth quarter of 2014, down from the $0.96 reported for December 31, 2013. Both quarterly and year-to-date results in 2013 included non-recurring income and expense items, which are more fully described in the non-GAAP disclosure tables included in this press release. Adjusting for these non-recurring items, diluted earnings per share for the year ended December 31, 2014, reflected an increase of 3.6% over 2013; while diluted earnings per share for the quarter ended December 31, 2014, reflected a decrease of 6.6% from the same period in 2013.

President and CEO, Stephen S. Romaine said “We are excited to report on another record year of earnings for our Company. These results were achieved through a combination of factors that included revenue growth from both Net Interest Income and Noninterest Income. The current year results also benefited from improved credit quality trends that contributed to a reduced provision for loan and lease losses. Nonperforming assets have improved for five consecutive quarters”.

SELECTED HIGHLIGHTS FOR FOURTH QUARTER:

  • Credit quality continues to improve with nonperforming asset down 11.8% compared to the most recent quarter end, and down 34.7% compared to December 31, 2013.
  • Year end loan balances were up 6.2% over December 31, 2013 and are up 4.2% over the most recent quarter end.
  • Average noninterest bearing deposits were up 12.1% as compared to the prior year, and are up 5.3% for the quarter as compared to the most recent quarter.
  • Year-to-date provision expense was down 62.6% compared to 2013, with year-to-date net charge offs down 54.9% from the prior year.
  • Fee based income from insurance, investment services, and deposit service charges were all up from the same quarter last year, and were up a combined 3.6% for the full year.
  • Tangible book value per share is up 8.4% from the fourth quarter of 2013. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income was $41.7 million for the fourth quarter of 2014, an increase of 0.3% over the most recent quarter and a decrease of 2.2% when compared to the same quarter in 2013. Year-to-date net interest income of $163.8 million was up 1.7% compared to net interest income of $161.1 million reported for the same period in 2013. Improved year-to-date net interest income was achieved mainly as a result of growth in average loans (up 6.1% from 2013) and average noninterest bearing deposits (up 12.1% from 2013). The net interest margin for the fourth quarter of 2014 was 3.53%, compared to 3.58% for the prior quarter end, and 3.78% for the same period in 2013.

NONINTEREST INCOME

Noninterest income was $18.1 million for the fourth quarter of 2014, and $70.8 million year-to-date, up 3.5% and 1.2%, respectively, compared to December 31, 2013. For the year-to-date period noninterest income represented 30.2% of total revenue which was in line with the same period in 2013.

Fee based revenue increased year-over-year with insurance revenues up 2.1%, investment revenue up 2.5%, deposit fee revenue up 10.7%, and card servicing revenue up 10.1%. Revenue related to the fee based business areas represented 26.1% of total revenues, compared to 25.4% for 2013.

NONINTEREST EXPENSE

Noninterest expense was $39.0 million for the fourth quarter of 2014, down 3.1% compared to the fourth quarter of 2013. For the year-to-date period, noninterest expense was up 1.0% from the same period in 2013. The slight decrease in noninterest expense compared to the prior quarter is mainly due to the decrease in salary and wage expense.

ASSET QUALITY

Asset quality trends continue to improve with nonperforming assets down 11.8% compared to prior quarter end, and down 34.7% compared to December 31, 2013. The percentages of nonperforming assets to total assets of 0.54% were down compared to prior quarter end and prior year end percentages of 0.63% and 0.87%, respectively. Nonperforming assets levels have shown improvement for 23 consecutive quarters and remain well below the most recent peer average of 1.39% reported by the Federal Reserve1. Substandard and Special Mention loans were $83.6 million at December 31, 2014, down from $85.4 million at the most recent prior quarter end and $128.3 million at the same quarter end last year. Provision expense for loan and lease losses for the year-to-date period was down 62.6% compared to the 2013 year-to-date period, mainly a result of the asset quality improvements.

The Company's allowance for originated loan and lease losses totaled $28.2 million at December 31, 2014, which represented 0.99% of total originated loans, compared to $26.7 million or 1.06% at December 31, 2013 and $27.2 million or 1.02% at September 30, 2014. The increase in the allowance when compared to the same period last year was primarily a result of loan growth and was partially offset by improved asset quality. The allowance for loan and lease losses covered 128.4% of nonperforming loans and leases as of December 31, 2014, up from 71.7% at December 31, 2013 and 108.9% at the most recent prior quarter.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets was 8.75% at December 31, 2014, compared to 8.52% reported for the same period prior year. The ratio of total capital to risk-weighted assets was 13.60% at December 31, 2014, up from 13.42% at December 31, 2013.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

NON-GAAP MEASURES

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

                       
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
 
(In thousands, except share and per share data) (Unaudited) As of As of
ASSETS 12/31/2014   12/31/2013  
 
Cash and noninterest bearing balances due from banks $ 53,921 $ 82,163
Interest bearing balances due from banks             2,149             721  
Cash and Cash Equivalents 56,070 82,884
 
Trading securities, at fair value 8,992 10,991
Available-for-sale securities, at fair value (amortized cost of $1,397,458 at December 31,
2014 and $1,368,736 at December 31, 2013) 1,402,236 1,354,811
Held-to-maturity securities, at amortized cost (fair value of $89,036 at December 31, 2014
and $19,625 at December 31, 2013) 88,168 18,980
Originated loans and leases, net of unearned income and deferred costs and fees 2,839,974 2,527,244
Acquired loans and leases, covered 19,319 25,868
Acquired loans and leases, non-covered 533,995 641,172
Less: Allowance for loan and lease losses             28,997             27,970  
Net Loans and Leases 3,364,291 3,166,314
 
FDIC indemnification asset 1,903 4,790
Federal Home Loan Bank stock 21,259 25,041
Bank premises and equipment, net 59,800 55,932
Corporate owned life insurance 73,725 69,335
Goodwill 92,243 92,140
Other intangible assets, net 14,649 16,298
Accrued interest and other assets             86,225             105,523  
  Total Assets         $   5,269,561         $   5,003,039  
 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,247,708 2,190,616
Time 898,081 865,702
  Noninterest bearing             1,023,365             890,898  
Total Deposits 4,169,154 3,947,216
 
Federal funds purchased and securities sold under agreements to repurchase 147,037 167,724
Other borrowings, including certain amounts at fair value of $10,961 at December 31, 2014
and $11,292 at December 31, 2013 356,541 331,531
Trust preferred debentures 37,337 37,169
Other liabilities             69,909             61,460  
  Total Liabilities         $   4,779,978         $   4,545,100  
 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,931,354 at December 31, 2014; and 14,785,007 at December 31, 2013 1,493 1,479
Additional paid-in capital 348,889 346,096
Retained earnings 165,160 137,102
Accumulated other comprehensive loss (24,011 ) (25,119 )
Treasury stock, at cost – 111,436 shares at December 31, 2014, and 105,449 shares
at December 31, 2013 (3,400 ) (3,071 )
 
Total Tompkins Financial Corporation Shareholders’ Equity 488,131 456,487
Noncontrolling interests             1,452             1,452  
  Total Equity         $   489,583         $   457,939  
  Total Liabilities and Equity         $   5,269,561         $   5,003,039  
 
See notes to consolidated financial statements
 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            Three Months Ended       Twelve Months Ended
(In thousands, except per share data) (Unaudited) 12/31/2014       12/31/2013   12/31/2014       12/31/2013  
INTEREST AND DIVIDEND INCOME    
Loans $ 38,366 $ 39,684 $ 150,966 $ 151,711
Due from banks 0 1 2 10
Trading securities 97 117 418 589
Available-for-sale securities 7,661 8,138 31,298 31,360
Held-to-maturity securities 373 157 999 685
Federal Home Loan Bank stock and Federal Reserve Bank stock               194           211           810           749  
Total Interest and Dividend Income               46,691           48,308           184,493           185,104  
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more 946 1,181 3,845 4,832
Other deposits 1,790 1,841 7,236 7,933
Federal funds purchased and securities sold under agreements to
repurchase 684 872 2,947 3,749
Trust preferred debentures 573 562 2,287 2,599
Other borrowings               1,006           1,228           4,368           4,862  
Total Interest Expense               4,999           5,684           20,683           23,975  
Net Interest Income               41,692           42,624           163,810           161,129  
Less: Provision for loan and lease losses               1,555           585           2,306           6,161  
Net Interest Income After Provision for Loan and Lease Losses               40,137           42,039           161,504           154,968  
NONINTEREST INCOME
Insurance commissions and fees 6,666 6,328 28,489 27,916
Investment services income 3,945 3,929 15,493 15,109
Service charges on deposit accounts 2,394 2,309 9,404 8,495
Card services income 1,974 2,053 7,942 7,216
Mark-to-market loss on trading securities (89 ) (66 ) (269 ) (538 )
Mark-to-market gain on liabilities held at fair value 71 12 331 555
Other income 2,854 2,998 8,984 10,546
Gain (loss) on sale of available-for-sale securities               241           (124 )         391           599  
Total Noninterest Income               18,056           17,439           70,765           69,898  
NONINTEREST EXPENSES
Salaries and wages 17,699 18,582 69,558 67,200
Pension and other employee benefits 5,138 5,150 21,102 22,164
Net occupancy expense of premises 2,908 2,892 12,203 11,757
Furniture and fixture expense 1,461 1,334 5,708 5,701
FDIC insurance 678 813 2,906 3,214
Amortization of intangible assets 525 549 2,095 2,197
Merger related expenses 0 0 0 228
Other operating expense               10,609           10,931           41,121           40,641  
Total Noninterest Expenses               39,018           40,251           154,693           153,102  
Income Before Income Tax Expense               19,175           19,227           77,576           71,764  
Income Tax Expense               6,453           4,905           25,404           20,777  
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation               12,722           14,322           52,172           50,987  
Less: Net income attributable to noncontrolling interests               33           32           131           131  
Net Income Attributable to Tompkins Financial Corporation           $   12,689       $   14,290       $   52,041       $   50,856  
Basic Earnings Per Share $ 0.86 $ 0.97 $ 3.51 $ 3.48
Diluted Earnings Per Share           $   0.85       $   0.96       $   3.48       $   3.46  
 
See notes to consolidated financial statements
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                                           
Quarter Ended Year to Date Period Ended Year to Date Period Ended
              December 31, 2014         December 31, 2014       December 31, 2013
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 $ 1,703 $ - 0.00 % $ 1,014 $ 2 0.20 % $ 2,005 $ 10 0.50 %
Securities (4)
U.S. Government securities 1,380,857 7,597 2.18 % 1,332,449 30,384 2.28 % 1,326,999 28,817 2.17 %
Trading securities 9,299 97 4.14 % 10,068 418 4.15 % 14,188 589 4.15 %
State and municipal (5) 86,603 754 3.45 % 85,402 3,290 3.85 % 95,276 4,893 5.14 %
Other securities (5) 4,248       32       2.99 %         4,489       139       3.10 %       7,714       265       3.44 %
Total securities 1,481,007 8,480 2.27 % 1,432,408 34,231 2.39 % 1,444,177 34,564 2.39 %
FHLBNY and FRB stock 16,129 194 4.77 % 19,168 810 4.23 % 22,153 749 3.38 %
 
Total loans and leases, net of unearned income (5)(6) 3,300,188       39,035       4.69 %         3,238,992       152,958       4.72 %       3,053,538       153,569       5.03 %
Total interest-earning assets 4,799,027       47,709       3.94 %         4,691,582       188,001       4.01 %       4,521,873       188,892       4.18 %
 
Other assets 394,320 375,073 406,626
 
  Total assets         5,193,347                       5,066,655                     4,928,499              
 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,348,788 1,036 0.17 % 2,286,707 4,312 0.19 % 2,224,028 4,938 0.22 %
Time deposits 912,217       1,700       0.74 %         904,040       6,769       0.75 %       939,630       7,827       0.83 %
Total interest-bearing deposits 3,261,005 2,736 0.33 % 3,190,747 11,081 0.35 % 3,163,658 12,765 0.40 %
 
Federal funds purchased & securities sold under
agreements to repurchase 140,241 684 1.93 % 145,876 2,947 2.02 % 177,784 3,749 2.11 %
Other borrowings 229,751 1,006 1.74 % 251,312 4,368 1.74 % 222,345 4,862 2.19 %
Trust preferred debentures 37,314       573       6.09 %         37,249       2,287       6.14 %       41,643       2,599       6.24 %
Total interest-bearing liabilities 3,668,311 4,999 0.54 % 3,625,184 20,683 0.57 % 3,605,430 23,975 0.67 %
 
Noninterest bearing deposits 974,657 903,628 806,387
Accrued expenses and other liabilities 54,848 54,244 73,117
Total liabilities 4,697,816 4,583,056 4,484,934
 
Tompkins Financial Corporation Shareholders’ equity 493,986 482,087 442,054
Noncontrolling interest 1,545 1,512 1,511
Total equity 495,531 483,599 443,565
 
Total liabilities and equity $ 5,193,347 $ 5,066,655 $ 4,928,499
Interest rate spread       3.40 %       3.44 %       3.51 %
Net interest income/margin on earning assets 42,710 3.53 % 167,318 3.57 % 164,917 3.65 %
 
Tax Equivalent Adjustment (1,018 ) (3,508 ) (3,788 )
 
  Net interest income per consolidated financial statements               $ 41,692                       $ 163,810                     $ 161,129        
 
 
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
                                                 
(In thousands, except per share data)   Quarter-Ended     Year-Ended
  Dec-14       Sep-14       Jun-14       Mar-14       Dec-13       Dec-14
                   
Period End Balance Sheet                                                  
Securities       $ 1,499,396     $ 1,431,837     $ 1,420,226     $ 1,408,918     $ 1,384,782     $ 1,499,396

Originated loans and leases, net of unearned income

and deferred costs and fees (2)

        2,839,974       2,674,971       2,610,289       2,555,522       2,527,244       2,839,974
Acquired loans and leases (3)         553,314       582,498       618,679       648,690       667,040       553,314
Allowance for loan and lease losses         28,997       27,786       27,517       28,014       27,970       28,997
Total assets         5,269,561       5,090,919       5,057,821       5,041,800       5,003,039       5,269,561
Total deposits         4,169,154       4,212,860       4,044,389       4,105,170       3,947,216       4,169,154
Federal funds purchased and securities sold under agreements to repurchase         147,037       128,368       144,796       158,794       167,724       147,037
Other borrowings         356,541       166,509       287,158       214,616       331,531       356,541
Trust preferred debentures         37,337       37,298       37,254       37,211       37,169       37,337
Total equity         489,583       490,611       489,237       473,822       457,939       489,583
 
Average Balance Sheet                                                  
Average earning assets       $ 4,799,027     $ 4,695,860     $ 4,666,722     $ 4,602,517     $ 4,571,099     $ 4,691,582
Average assets         5,193,347       5,058,608       5,030,395       4,982,033       4,950,476       5,066,655
Average interest-bearing liabilities         3,668,311       3,587,673       3,620,130       3,624,555       3,574,803       3,625,184
Average equity         495,531       489,920       480,063       468,515       449,445       483,599
 
Share data                                                  
Weighted average shares outstanding (basic)         14,639,631       14,711,709       14,709,881       14,644,548       14,589,120       14,676,622
Weighted average shares outstanding (diluted)         14,765,855       14,795,343       14,821,191       14,775,386       14,731,786       14,789,621
Period-end shares outstanding         14,895,444       14,794,092       14,853,439       14,829,007       14,749,097       14,895,444
Book value per share       $ 32.87     $ 33.16     $ 32.94     $ 31.95     $ 31.05     $ 32.87
Tangible book value per share (Non-GAAP)       $ 25.69     $ 25.90     $ 25.68     $ 24.65     $ 23.70     $ 25.69
 
Income Statement                                                  
Net interest income       $ 41,692     $ 41,575     $ 40,516     $ 40,027     $ 42,624     $ 163,810
Provision (Credit) for loan/lease losses         1,555       (59)       67       743       585       2,306
Noninterest income         18,056       17,555       17,720       17,434       17,439       70,765
Noninterest expense         39,018       38,537       38,928       38,210       40,251       154,693
Income tax expense         6,453       6,897       6,148       5,906       4,905       25,404
Net income attributable to Tompkins Financial Corporation         12,689       13,722       13,061       12,569       14,290       52,041
Noncontrolling interests         33       33       32       33       32       131
Basic earnings per share (9)       $ 0.86     $ 0.92     $ 0.88     $ 0.85     $ 0.97     $ 3.51
Diluted earnings per share (9)       $ 0.85     $ 0.92     $ 0.87     $ 0.84     $ 0.96     $ 3.48
 
Nonperforming Assets                                                  
Originated nonaccrual loans and leases       $ 14,299     $ 16,319     $ 16,918     $ 26,974     $ 29,875     $ 14,299
Acquired nonaccrual loans and leases         4,729       4,998       5,907       6,936       8,508       4,729
Originated loans and leases 90 days past due and accruing         106       395       543       339       607       106
Troubled debt restructurings not included above         3,444       3,800       3,327       1,266       45       3,444
Total nonperforming loans and leases         22,578       25,512       26,695       35,515       39,035       22,578
OREO (8)         5,683       6,533       6,795       5,351       4,253       5,683
Total nonperforming assets       $ 28,261     $ 32,045     $ 33,490     $ 40,866     $ 43,288     $ 28,261
 

 

  Quarter-Ended     Year-Ended
Delinquency - Originated loan and lease portfolio         Dec-14       Sep-14       Jun-14       Mar-14       Dec-13       Dec-14
Loans and leases 30-89 days past due and
accruing (2)       $ 6,849     $ 3,811     $ 5,221     $ 5,660     $ 5,762     $ 6,849
Loans and leases 90 days past due and accruing (2)         106       395       543       339       607       106
Total originated loans and leases past due and accruing (2)         6,955       4,206       5,764       5,999       6,369       6,955
 
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)       $ 533     $ 0     $ 0     $ 635     $ 0     $ 533
Covered loans and leases 90 days or more past
due and accruing (3)(7)         914       1,149       904       1,135       2,416       914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)         1,186       736       1,620       2,293       1,532       1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)         2,614       3,171       3,048       3,746       4,557       2,614
Total acquired loans and leases past due and accruing         5,247       5,056       5,572       7,809       8,505       5,247
Total loans and leases past due and accruing       $ 12,202     $ 9,262     $ 11,336     $ 13,808     $ 14,874     $ 12,202
 
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period       $ 27,185     $ 26,752     $ 26,661     $ 26,700     $ 25,722     $ 26,700
Provision (Credit) for loan and lease losses         1,102       (264)       (56)       511       (325)       1,293
Net loan and lease (recoveries) charge-offs         131       (697)       (147)       550       (1,303)       (163)
Allowance for loan and lease losses (originated 28,156 27,185 26,752 26,661 26,700 28,156
loan portfolio) - balance at end of period       $     $     $     $     $     $
 
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period       $ 601     $ 765     $ 1,353     $ 1,270     $ 686     $ 1,270
Provision for loan and lease losses         453       205       123       232       910       1,013
Net loan and lease charge-offs         213       369       711       149       326       1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period         841       601       765       1,353       1,270       841
Total allowance for loan and lease losses       $ 28,997     $ 27,786     $ 27,517     $ 28,014     $ 27,970     $ 28,997
 
Loan Classification - Originated Portfolio                                                  
Special Mention       $ 36,331     $ 27,854     $ 35,484     $ 44,725     $ 42,365     $ 36,331
Substandard         19,970       25,889       21,253       32,917       35,022       19,970
Loan Classification - Acquired Portfolio                                                  
Special Mention         5,758       7,605       12,124       14,936       17,322       5,758
Substandard         21,567       24,034       30,273       34,137       33,561       21,567
Loan Classifications - Total Portfolio                                                  
Special Mention         42,089       35,459       47,608       59,661       59,687       42,089
Substandard         41,537       49,923       51,526       67,054       68,583       41,537
 
                                                   
RATIO ANALYSIS   Quarter-Ended     Year-Ended
Credit Quality         Dec-14       Sep-14       Jun-14       Mar-14       Dec-13       Dec-14
Nonperforming loans and leases/total loans and leases (7)         0.67%       0.78%       0.83%       1.11%       1.22%       0.67%
Nonperforming assets/total assets         0.54%       0.63%       0.66%       0.81%       0.87%       0.54%
Allowance for originated loan and lease losses/total originated loans and leases         0.99%       1.02%       1.02%       1.04%       1.06%       0.99%
Allowance/nonperforming loans and leases         128.43%       108.92%       103.08%       78.88%       71.65%       128.43%
Net loan and lease losses (recoveries) annualized/total average loans and leases         0.04%       (0.04%)       0.07%       0.09%       (0.12%)       0.09%
 
Capital Adequacy (period-end)                                                  
Tier 1 capital / average assets         8.75%       8.85%       8.79%       8.68%       8.52%       8.75%
Total capital / risk-weighted assets         13.60%       13.92%       13.92%       13.67%       13.42%       13.60%
Tangible Common Equity/Tangible Assets (Non-GAAP)         7.40%       7.68%       7.70%       7.40%       7.13%       7.40%
 
Profitability                                                  
Return on average assets *         0.97%       1.08%       1.04%       1.02%       1.15%       1.03%
Return on average equity *         10.16%       11.11%       10.91%       10.88%       12.62%       10.76%
Net interest margin (TE) *         3.53%       3.58%       3.55%       3.60%       3.78%       3.57%
* Quarterly ratios have been annualized
 
Non-GAAP Disclosure - Adjusted Noninterest Income                                
Reported noninterest income (GAAP)       $ 18,056     $ 17,555     $ 17,720     $ 17,434     $ 17,439     $ 70,765
Adjustments (pre-tax):                                                  
Gain on deposit conversion         0       0       0       0       (1,285)       0
Noninterest income (Non-GAAP)         18,056       17,555       17,720       17,434       16,154       70,765
 
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share                                
Reported net income (GAAP)       $ 12,689     $ 13,722     $ 13,061     $ 12,569     $ 14,290     $ 52,041
Gain on deposit conversion (net of tax)         0       0       0       0       (771)       0
Net operating income (Non-GAAP)         12,689       13,722       13,061       12,569       13,519       52,041
Adjusted diluted earnings per share (Non-GAAP) (9)       $ 0.85     $ 0.92     $ 0.87     $ 0.84     $ 0.91     $ 3.48
 
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets                                
Total Common equity       $ 488,131     $ 489,060     $ 487,720     $ 472,337     $ 456,487     $ 488,131
Less: Goodwill and intangibles (10)         105,852       106,377       106,690       107,219       107,395       105,852
Tangible common equity         382,279       382,683       381,030       365,118       349,092       382,279
Total assets         5,269,561       5,090,919       5,057,821       5,041,800       5,003,039       5,269,561
Less: Goodwill and intangibles (10)         105,852       106,377       106,690       107,219       107,395       105,852
Tangible assets         5,163,709       4,984,542       4,951,131       4,934,581       4,895,644       5,163,709

Tangible common equity / tangible assets (Non-GAAP)

        7.40%       7.68%       7.70%       7.40%       7.13%       7.40%

 

                                                   
Non-GAAP Disclosure - Return on Average   Quarter-Ended     Year-Ended
Tangible Common Equity         Dec-14       Sep-14       Jun-14       Mar-14       Dec-13       Dec-14
Net income available to common shareholders       $ 12,539     $ 13,604     $ 12,943     $ 12,452     $ 14,156     $ 51,538
Gain on deposit conversion (net of tax)         0       0       0       0       (771)       0
Net operating income (Non-GAAP)         12,539       13,604       12,943       12,452       13,385       51,538
Amortization of intangibles (net of tax)         315       311       315       316       329       1,257
Adjusted net operating income (Non-GAAP)         12,854       13,915       13,258       12,768       13,714       52,795
Average common equity       $ 493,986     $ 488,386     $ 478,561     $ 467,048     $ 447,905     $ 482,087
Less: Average goodwill and intangibles (10)         106,151       106,471       106,988       107,399       107,689       106,748
Average tangible common equity capital         387,835       381,915       371,573       359,649       340,216       375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)         13.15%       14.46%       14.31%       14.40%       15.99%       14.07%
 
 
Non-GAAP Disclosure - Tangible Book Value Per Share  
Total shareholders' equity (GAAP)       $ 489,583     $ 490,611     $ 489,237     $ 473,822     $ 457,939     $ 489,583
Less: goodwill and intangibles (10)         106,892       107,449       107,728       108,250       108,438       106,892
Tangible shareholders' equity         382,691       383,162       381,509       365,572       349,501       382,691
Ending shares outstanding         14,895,444       14,794,092       14,853,439       14,829,007       14,749,097       14,895,444
Tangible book value per share (Non-GAAP)       $ 25.69     $ 25.90     $ 25.68     $ 24.65     $ 23.70     $ 25.69
 
           
Non-GAAP Disclosure - (Adjusted Diluted Year-to-date period ended
Earnings Per Share)       Dec-14     Dec-13
Net income attributable to Tompkins Financial              

 

 
Corporation       $ 52,041     $ 50,856

 

Adjustments (net of tax):                  
Merger related expenses         0       140
Gain on redemption of trust preferred securities         0       (846)
Gain on deposit conversion         0       (771)
Subtotal adjustments         0       (1,477)
Net operating income (Non-GAAP)       $ 52,041     $ 49,379
Adjusted diluted earnings per share (Non-GAAP)       $

3.48

    $ 3.36
 
(1) Federal Reserve peer ratio as of September 30, 2014, 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, 2013.
(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.
 
 

Contacts

Tompkins Financial Corporation
Stephen S. Romaine, 888-503-5753
President & CEO
or
Francis M. Fetsko, 888-503-5753
Executive VP, CFO & COO

Contacts

Tompkins Financial Corporation
Stephen S. Romaine, 888-503-5753
President & CEO
or
Francis M. Fetsko, 888-503-5753
Executive VP, CFO & COO