Tompkins Financial Corporation Reports Second Quarter Earnings

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

Tompkins Financial Corporation reported net income of $14.6 million for the quarter, and $28.8 million for the year to date period ended June 30, 2016, down $2.8 million and $1.3 million, respectively, from the same period in 2015. Prior year results included a non-recurring curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan, which was recognized in the second quarter of 2015.

Diluted earnings per share were $0.96 for the second quarter of 2016, down $0.19 per share (16.5%) from the second quarter of 2015. For the year to date period ended June 30, 2016, diluted earnings per share were $1.89, down $0.11 per share (5.5%) from the same period in 2015. If the non-recurring curtailment gain were excluded from prior year results, the current period diluted earnings per share would reflect growth of 5.5% for the quarter and 8.0% for the year to date when compared to the same periods in 2015. Refer to the table of “NON-GAAP MEASURES” included in this press release for additional details.

President and CEO, Stephen S. Romaine said "The current quarter and year to date periods reflect very good results for our Company. Solid loan growth, stable margins, and very good credit quality have been key to our success in the first half of the year.”

SELECTED HIGHLIGHTS FOR SECOND QUARTER:

• Net interest income of $44.9 million was up 8.7% compared to the second quarter of 2015.
• Total loans of $4.0 billion were up 13.0% over the same period in 2015.
• Net interest margin has remained relatively stable over the past five quarters.
• Credit quality continues to improve with nonperforming assets down 21.0% compared to the second quarter of 2015.

NET INTEREST INCOME

Net interest income of $44.9 million for the second quarter of 2016 increased by $3.6 million, or 8.7% compared to the same period in 2015. For the year to date period, net interest income was $88.9 million, up $6.4 million, or 7.7% from the same period in 2015.

Growth in net interest income was largely driven by $537.7 million of growth in total loans since the second quarter of 2015, an increase of 17.8%. The loan growth was supported in part by a $265.6 million increase in total deposits over the same period. The net interest margin was 3.36%, and has remained relatively stable since the second quarter of 2015.

NONINTEREST INCOME

Noninterest income represented 27.6% of total revenues in the second quarter of 2016, compared to 31.5% compared to the same period in 2015. While fee based revenue has remained relatively stable when compared to the prior year, overall noninterest income was down from the prior year both for the quarter and year to date periods. The lower noninterest income for the quarter was largely related to higher income in the prior year related to gains on the sale of available-for-sale securities (higher by $484,000 in the prior year) and gains on the sale of other real estate owned (higher by $858,000 in the prior year).

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the second quarter of 2016, up $6.5 million over the second quarter of 2015. For the year to date period, noninterest expense was $79.0, up $6.3 million from the same period in 2015. The second quarter and year to date noninterest expense in 2015 were reduced by a $6.0 million non-recurring curtailment gain related to a change in the Company’s defined benefit pension plan.

ASSET QUALITY

Asset quality trends showed continued improvement in the second quarter of 2016. Nonperforming assets were down 21.0% compared to the second quarter in 2015, and down 15.5% from the first quarter of 2016. Nonperforming assets represented 0.32% of total assets at June 30, 2016, down from 0.43% at December 31, 2015, and from 0.39% at March 31, 2016. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average¹ of 0.89%.

Provision for loan and lease losses was $978,000 for the second quarter of 2016, up from $922,000 compared to the second quarter of 2015. The year-over-year increase in provision expense is primarily due to loan growth. Net charge-offs for the second quarter of 2016 were $384,000 compared to $316,000 reported in the second quarter 2015.

The Company’s allowance for originated loan and lease losses totaled $33.0 million at June 30, 2016, and represented 0.93% of total originated loans at June 30, 2016, compared to 0.98% at June 30, 2015, and 0.95% at December 31, 2015. The total allowance represented 183.0% of total nonperforming loans and leases at June 30, 2016, up from 146.7% at December 31, 2015, and 139.36% at June 30, 2015.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.79%, compared to 8.82% reported for December 31, 2015, and 8.92% at June 30, 2015. Total Capital to risk-weighted assets at June 30, 2016 was 12.95%, compared to 13.03% reported at December 31, 2015 and 13.46% at June 30, 2015.

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		06/30/2016		12/31/2015
Cash and noninterest bearing balances due from banks	$	64,551	$	56,261
Interest bearing balances due from banks		1,834		1,996
Cash and Cash Equivalents		66,385		58,257
Trading securities, at fair value		6,719		7,368
Available-for-sale securities, at fair value (amortized cost of $1,388,108 at June 30,
2016 and $1,390,255 at December 31, 2015)		1,412,382		1,385,684
Held-to-maturity securities, at amortized cost (fair value of $152,901 at June 30, 2016
and $146,686 at December 31, 2015)		144,979		146,071
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,551,628		3,310,768
Acquired loans and leases, covered (3)		12,269		14,031
Acquired loans and leases, non-covered (3)		414,216		447,243
Less: Allowance for loan and lease losses		33,125		32,004
Net Loans and Leases		3,944,988		3,740,038
Federal Home Loan Bank stock		36,462		29,969
Bank premises and equipment, net		61,683		60,331
Corporate owned life insurance		76,921		75,792
Goodwill		92,942		91,792
Other intangible assets, net		12,532		12,448
Accrued interest and other assets		68,913		82,245
Total Assets	$	5,924,906	$	5,689,995
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		2,462,885		2,401,519
Time		883,320		855,133
Noninterest bearing		1,123,516		1,138,654
Total Deposits		4,469,721		4,395,306
Federal funds purchased and securities sold under agreements to repurchase		97,180		136,513
Other borrowings, including certain amounts at fair value of $10,426 at June 30, 2016
and $10,576 at December 31, 2015		700,026		536,285
Trust preferred debentures		37,595		37,509
Other liabilities		65,949		67,916
Total Liabilities	$	5,370,471	$	5,173,529
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
15,071,279 at June 30, 2016; and 15,015,594 at December 31, 2015		1,507		1,502
Additional paid-in capital		355,462		350,823
Retained earnings		212,990		197,445
Accumulated other comprehensive loss		(13,267)		(31,001)
Treasury stock, at cost – 114,110 shares at June 30, 2016, and 116,126 shares
at December 31, 2015		(3,774)		(3,755)
Total Tompkins Financial Corporation Shareholders’ Equity		552,918		515,014
Noncontrolling interests		1,517		1,452
Total Equity	$	554,435	$	516,466
Total Liabilities and Equity	$	5,924,906	$	5,689,995

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended				Six Months Ended
(In thousands, except per share data) (Unaudited)		06/30/2016		06/30/2015		06/30/2016		06/30/2015
INTEREST AND DIVIDEND INCOME
Loans	$	41,834	$	38,059	$	82,321	$	75,435
Due from banks		1		1		3		2
Trading securities		77		90		158		184
Available-for-sale securities		7,284		7,374		14,815		15,188
Held-to-maturity securities		903		674		1,814		1,270
Federal Home Loan Bank stock and Federal Reserve Bank stock		318		225		615		572
Total Interest and Dividend Income		50,417		46,423		99,726		92,651
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		422		354		812		689
Other deposits		2,264		2,267		4,473		4,553
Federal funds purchased and securities sold under agreements to
repurchase		644		665		1,310		1,335
Trust preferred debentures		594		573		1,183		1,143
Other borrowings		1,586		1,234		3,003		2,373
Total Interest Expense		5,510		5,093		10,781		10,093
Net Interest Income		44,907		41,330		88,945		82,558
Less: Provision for loan and lease losses		978		922		1,833		1,131
Net Interest Income After Provision for Loan and Lease Losses		43,929		40,408		87,112		81,427
NONINTEREST INCOME
Insurance commissions and fees		7,517		7,407		15,079		14,777
Investment services income		3,834		3,838		7,620		7,844
Service charges on deposit accounts		2,092		2,244		4,356		4,402
Card services income		2,002		2,025		3,943		3,843
Mark-to-market loss on trading securities		(60)		(74)		(106)		(137)
Mark-to-market gain on liabilities held at fair value		92		104		149		145
Other income		1,367		2,695		3,074		4,721
Gain on sale of available-for-sale securities		240		723		472		1,013
Total Noninterest Income		17,084		18,962		34,587		36,608
NONINTEREST EXPENSES
Salaries and wages		19,333		18,394		38,322		35,962
Pension and other employee benefits		4,934		(519)		10,217		5,475
Net occupancy expense of premises		2,999		3,073		6,147		6,412
Furniture and fixture expense		1,577		1,483		3,266		2,933
FDIC insurance		783		748		1,605		1,489
Amortization of intangible assets		521		500		1,048		1,007
Other operating expense		9,241		9,239		18,289		19,332
Total Noninterest Expenses		39,388		32,918		78,894		72,610
Income Before Income Tax Expense		21,625		26,452		42,805		45,425
Income Tax Expense		7,022		9,030		13,989		15,290
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		14,603		17,422		28,816		30,135
Less: Net income attributable to noncontrolling interests		32		32		65		65
Net Income Attributable to Tompkins Financial Corporation	$	14,571	$	17,390	$	28,751	$	30,070
Basic Earnings Per Share	$	0.97	$	1.16	$	1.91	$	2.01
Diluted Earnings Per Share	$	0.96	$	1.15	$	1.89	$	2.00

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
	June 30, 2016					June 30, 2016					June 30, 2015
	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	$	1,936	$	2	0.42%	$	2,015	$	3	0.30%	$	1,607	$	2	0.25%
Securities (4)
U.S. Government securities		1,464,091		7,647	2.10%		1,461,423		15,549	2.14%		1,442,846		15,366	2.15%
Trading securities		6,920		78	4.53%		7,084		158	4.49%		8,654		184	4.29%
State and municipal (5)		99,493		840	3.40%		98,562		1,678	3.42%		87,502		1,703	3.92%
Other securities (5)		3,641		30	3.31%		3,664		61	3.35%		3,758		60	3.22%
Total securities		1,574,145		8,595	2.20%		1,570,733		17,446	2.23%		1,542,760		17,313	2.26%
FHLBNY and FRB stock		31,617		318	4.05%		29,708		615	4.16%		22,355		572	5.15%
Total loans and leases, net of unearned income (5)(6)		3,885,215		42,525	4.40%		3,838,211		83,713	4.39%		3,431,282		76,635	4.50%
Total interest-earning assets		5,492,913		51,440	3.77%		5,440,667		101,777	3.76%		4,998,004		94,522	3.81%
Other assets		349,474					345,662					355,264
Total assets		5,842,387					5,786,329					5,353,268
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market		2,531,393		982	0.16%		2,532,290		1,938	0.15%		2,337,605		1,914	0.17%
Time deposits		890,864		1,704	0.77%		879,479		3,347	0.77%		912,016		3,328	0.74%
Total interest-bearing deposits		3,422,257		2,686	0.32%		3,411,769		5,285	0.31%		3,249,621		5,242	0.33%
Federal funds purchased & securities sold under
agreements to repurchase		99,015		644	2.62%		112,639		1,310	2.34%		136,811		1,335	1.97%
Other borrowings		584,193		1,586	1.09%		543,256		3,003	1.11%		385,233		2,373	1.24%
Trust preferred debentures		37,566		594	6.36%		37,545		1,183	6.34%		37,374		1,143	6.17%
Total interest-bearing liabilities		4,143,031		5,510	0.53%		4,105,209		10,781	0.53%		3,809,039		10,093	0.53%
Noninterest bearing deposits		1,093,113					1,080,375					978,233
Accrued expenses and other liabilities		62,960					64,946					64,615
Total liabilities		5,299,104					5,250,530					4,851,887
Tompkins Financial Corporation Shareholders’ equity		541,781					534,314					499,896
Noncontrolling interest		1,502					1,485					1,485
Total equity		543,283					535,799					501,381
Total liabilities and equity	$	5,842,387				$	5,786,329				$	5,353,268
Interest rate spread					3.23%					3.23%					3.28%
Net interest income/margin on earning assets				45,930	3.36%				90,996	3.36%				84,429	3.41%
Tax Equivalent Adjustment				(1,023)					(2,051)					(1,871)
Net interest income per consolidated financial statements			$	44,907				$	88,945				$	82,558

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)	Quarter-Ended										Year-Ended
	Jun-16		Mar-16		Dec-15		Sep-15		Jun-15		Dec-15
Period End Balance Sheet
Securities	$	1,564,080	$	1,583,742	$	1,539,123	$	1,542,332	$	1,536,374	$	1,539,123
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,551,628		3,370,791		3,310,768		3,149,386		3,013,968		3,310,768
Acquired loans and leases (3)		426,485		450,122		461,274		484,927		507,963		461,274
Allowance for loan and lease losses		33,125		32,530		32,004		30,965		30,091		32,004
Total assets		5,924,906		5,764,971		5,689,995		5,594,718		5,436,136		5,689,995
Total deposits		4,469,721		4,555,228		4,395,306		4,437,073		4,204,089		4,395,306
Federal funds purchased and securities sold under agreements to repurchase		97,180		116,551		136,513		134,941		131,063		136,513
Other borrowings		700,026		455,341		536,285		398,946		493,326		536,285
Trust preferred debentures		37,595		37,552		37,509		37,466		37,423		37,509
Total common equity		552,918		538,408		515,014		516,409		503,877		515,014
Total equity		554,435		539,893		516,466		517,959		505,394		516,466
Average Balance Sheet
Average earning assets	$	5,492,913	$	5,388,420	$	5,260,979	$	5,138,665	$	5,038,586	$	5,099,743
Average assets		5,842,387		5,730,271		5,624,351		5,486,645		5,391,114		5,455,214
Average interest-bearing liabilities		4,143,031		4,067,385		3,930,707		3,856,025		3,835,430		3,851,549
Average equity		543,283		528,314		518,529		509,518		505,667		507,754
Share data
Weighted average shares outstanding (basic)		14,798,515		14,760,276		14,719,394		14,739,915		14,751,844		14,728,193
Weighted average shares outstanding (diluted)		14,975,115		14,905,919		14,869,103		14,866,735		14,878,107		14,863,026
Period-end shares outstanding		15,035,369		15,023,776		14,979,684		14,905,576		14,942,107		14,979,684
Common equity book value per share	$	36.77	$	35.84	$	34.38	$	34.65	$	33.72	$	34.38
Tangible book value per share (Non-GAAP)	$	29.82	$	28.85	$	27.48	$	27.64	$	26.71	$	27.48
Income Statement
Net interest income	$	44,907	$	44,038	$	43,437	$	42,386	$	41,330	$	168,381
Provision (Credit) for loan/lease losses		978		855		1,533		281		922		2,945
Noninterest income		17,084		17,503		17,910		17,422		18,962		71,940
Noninterest expense		39,388		39,506		39,370		37,882		32,918		149,862
Income tax expense		7,022		6,967		6,557		7,115		9,030		28,962
Net income attributable to Tompkins Financial Corporation		14,571		14,180		13,854		14,497		17,390		58,421
Noncontrolling interests		32		33		33		33		32		131
Basic earnings per share (9)	$	0.97	$	0.95	$	0.93	$	0.97	$	1.16	$	3.91
Diluted earnings per share (9)	$	0.96	$	0.94	$	0.92	$	0.96	$	1.15	$	3.87
Nonperforming Assets
Originated nonaccrual loans and leases	$	11,008	$	12,671	$	13,506	$	14,821	$	14,566	$	13,506
Acquired nonaccrual loans and leases		4,831		4,145		4,331		4,908		5,030		4,331
Originated loans and leases 90 days past due and accruing		89		57		58		57		58		58
Troubled debt restructurings not included above		2,172		3,862		3,915		3,465		1,939		3,915
Total nonperforming loans and leases		18,100		20,735		21,810		23,251		21,593		21,810
OREO (8)		1,001		1,865		2,692		3,188		2,570		2,692
Total nonperforming assets	$	19,101	$	22,600	$	24,502	$	26,439	$	24,163	$	24,502
	Quarter-Ended										Year-Ended
Delinquency - Originated loan and lease portfolio		Jun-16		Mar-16		Dec-15		Sep-15		Jun-15		Dec-15
Loans and leases 30-89 days past due and
accruing (2)	$	6,580	$	2,519	$	3,280	$	3,550	$	3,315	$	3,280
Loans and leases 90 days past due and accruing (2)		89		57		58		57		58		58
Total originated loans and leases past due and accruing (2)		6,669		2,576		3,338		3,607		3,373		3,338
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	850	$	1	$	276	$	309	$	455	$	276
Covered loans and leases 90 days or more past
due and accruing (3)(7)		474		469		524		508		674		524
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		900		1,038		933		1,028		917		933
Non-covered loans and leases 90 days past
due and accruing (3)(7)		1,387		1,446		1,991		2,069		3,031		1,991
Total acquired loans and leases past due and accruing		3,611		2,954		3,724		3,914		5,077		3,724
Total loans and leases past due and accruing	$	10,280	$	5,530	$	7,062	$	7,521	$	8,450	$	7,062
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	31,981	$	31,312	$	30,450	$	29,428	$	28,690	$	28,156
Provision for loan and lease losses		978		872		1,185		173		769		2,467
Net loan and lease (recoveries) charge-offs		(9)		203		323		(849)		31		(689)
Allowance for loan and lease losses (originated		32,968		31,981		31,312		30,450		29,428		31,312
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	549	$	692	$	515	$	663	$	795	$	841
Provision (Credit) for loan and lease losses		0		(17)		348		108		153		478
Net loan and lease charge-offs		392		126		171		256		285		627
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		157		549		692		515		663		692
Total allowance for loan and lease losses	$	33,125	$	32,530	$	32,004	$	30,965	$	30,091	$	32,004
Loan Classification - Originated Portfolio
Special Mention	$	20,639	$	20,388	$	19,657	$	25,133	$	25,706	$	19,657
Substandard		16,462		18,026		18,186		19,937		21,600		18,186
Loan Classification - Acquired Portfolio
Special Mention		550		534		540		1,446		1,589		540
Substandard		13,975		17,445		17,007		23,683		21,932		17,007
Loan Classifications - Total Portfolio
Special Mention		21,189		20,922		20,197		26,579		27,295		20,197
Substandard		30,437		35,471		35,193		43,620		43,532		35,193
RATIO ANALYSIS	Quarter-Ended										Year-Ended
Credit Quality		Jun-16		Mar-16		Dec-15		Sep-15		Jun-15		Dec-15
Nonperforming loans and leases/total loans and leases (7)		0.45%		0.54%		0.58%		0.64%		0.61%		0.58%
Nonperforming assets/total assets		0.32%		0.39%		0.43%		0.47%		0.44%		0.43%
Allowance for originated loan and lease losses/total originated loans and leases		0.93%		0.95%		0.95%		0.97%		0.98%		0.95%
Allowance/nonperforming loans and leases		183.01%		156.88%		146.74%		133.18%		139.36%		146.74%
Net loan and lease losses (recoveries) annualized/total average loans and leases		0.04%		0.03%		0.05%		(0.07%)		0.04%		(0.00%)
Capital Adequacy (period-end)
Tier 1 capital / average assets *		8.79%		8.79%		8.82%		8.89%		8.92%		8.82%
Total capital / risk-weighted assets *		12.95%		13.18%		13.03%		13.29%		13.46%		13.03%
Profitability
Return on average assets *		1.00%		0.99%		0.98%		1.05%		1.29%		1.07%
Return on average equity *		10.79%		10.77%		10.63%		11.29%		13.79%		11.51%
Net interest margin (TE) *		3.36%		3.36%		3.35%		3.35%		3.37%		3.38%
* 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 measure provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See "Tompkins Financial Corporation - Summary Financial Data (Unaudited)" tables for Non-GAAP related calculations.
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Net income available to common shareholders	$	14,571	$	14,180	$	13,854	$	14,497	$	17,390	$	58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		224		229		229		189		234		834
Adjusted net income available to common shareholders		14,347		13,951		13,625		14,308		17,156		57,587
Gain on pension plan curtailment (net of tax)		0		0		0		0		(3,602)		(3,602)
Net operating income (Non-GAAP)		14,347		13,951		13,625		14,308		13,554		53,985
Weighted average shares outstanding (diluted)		14,975,115		14,905,919		14,869,103		14,866,735		14,878,107		14,863,026
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.96	$	0.94	$	0.92	$	0.96	$	0.91	$	3.63
Non-GAAP Disclosure - Tangible Book Value Per Share
	Jun-16		Mar-16		Dec-15		Sep-15		Jun-15		Dec-15
Total common equity	$	552,918	$	538,408	$	515,014	$	516,409	$	503,877	$	515,014
Less: Goodwill and intangibles (10)		104,636		104,987		103,347		104,349		104,845		103,347
Tangible common equity		448,282		433,421		411,667		412,060		399,032		411,667
Ending shares outstanding		15,035,369		15,023,776		14,979,684		14,905,576		14,942,107		14,979,684
Tangible book value per share (Non-GAAP)	$	29.82	$	28.85	$	27.48	$	27.64	$	26.71	$	27.48
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
			Jun-16		Jun-15
Net income available to common shareholders			$	28,751	$	30,070
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards				453		420
Adjusted net income available to common shareholders				28,298		29,650
Gain on pension plan curtailment				0		(3,602)
Net operating income (Non-GAAP)				28,298		26,048
Weighted average shares outstanding (diluted)				14,940,518		14,858,127
Adjusted diluted earnings per share (Non-GAAP)			$	1.89	$	1.75
(1) Federal Reserve peer ratio as of March 31, 2016, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans".
(3)"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2015.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(10) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.