Tompkins Financial Corporation Reports Record Third Quarter Earnings

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

Tompkins Financial Corporation reported diluted earnings per share of $0.96 for the third quarter of 2015, representing the best third quarter in Company history and an increase of 4.35% over $0.92 reported for the third quarter of 2014. Net income of $14.5 million for the third quarter of 2015, was up 5.6% from the $13.7 million reported for the same period in 2014.

For the year-to-date period ended September 30, 2015, diluted earnings per share were $2.96, reflecting an increase of 12.1% over the $2.64 reported for September 30, 2014. Year to date net income was $44.6 million, an increase of 13.3% from the $39.4 million reported for the same period in 2014. Year to date results were helped by a one-time curtailment gain of $3.6 million after tax ($0.24 per share), recognized in the second quarter of 2015, related to changes to the Company’s pension plan. If this gain was excluded from current year to date net income, diluted earnings per share would have been $2.72. The impact of this non-recurring item on the Company’s financial statements is more fully detailed in the non-GAAP disclosure tables included with this press release.

President and CEO, Stephen S. Romaine said "We are very pleased to report on record earnings performance for the third quarter of 2015. Continued growth in loans and deposits contributed to our success during the quarter, as earnings improved despite the challenging interest rate environment that continues to pressure net interest margin.”

SELECTED HIGHLIGHTS FOR THIRD QUARTER:

  • Return on average equity was 11.29% for the quarter, up from 11.11% for the third quarter of 2014.
  • Net interest income of $42.4 million was up 2.0% compared to the third quarter of 2014.
  • Total loans of $3.6 billion were up 11.6% over September 30, 2014.
  • Noninterest-bearing deposits of $1.1 billion were up 14.5% over the same period in 2014.
  • Tangible book value per share increased 6.8% from the third quarter of 2014. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $42.4 million for the third quarter of 2015 reflected an increase of 2.0% when compared to the same period in 2014, despite a decline in net interest margin to 3.35% in the current period, down from 3.58% for the third quarter of 2014. Offsetting the decline in net interest margin was solid balance sheet growth, which included a 10.3% increase in average loans from the same quarter last year, and a 13.7% increase in average noninterest-bearing deposits over the same period.

For the year-to-date period, net interest income of $124.9 million was up 2.3% from the prior year, while net interest margin declined to 3.39% in 2015, compared to 3.58% in 2014.

NONINTEREST INCOME

Noninterest income was $17.4 million for the third quarter of 2015, and was in line with same period in 2014. Year-to-date noninterest income of $54.0 million was 2.5% ahead of the $52.7 million reported for September 30, 2014, and included gains on the sale of other real estate owned totaling $924,000 for 2015.

Noninterest income represented 29.1% of total revenue for the third quarter of 2015, compared to 29.7% for the same period in 2014. For the year-to-date period ending September 30, 2015, noninterest income represented 30.2% of total revenue, which was in line with the same period in 2014.

NONINTEREST EXPENSE

Noninterest expense was $37.9 million for the third quarter of 2015, down 1.7% compared to the third quarter of 2014. For the year-to-date period, noninterest expense was down 4.5% from the same period in 2014. The decrease in noninterest expense for the year-to-date period was mainly due to a $6.0 million gain on a pension plan curtailment recorded in the third quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan, which has been replaced with a more flexible defined contribution pension plan.

ASSET QUALITY

Asset quality remains strong in the third quarter of 2015. Nonperforming assets as a percentage of total assets represented 0.47% at September 30, 2015, down from 0.63% at September 30, 2014. Despite a modest increase from the 0.44% reported for the immediate prior quarter, the ratio remains well below the most recent Federal Reserve Board Peer Group Average1 of 0.80%. Additionally, substandard and special mention loans declined by $15.2 million from the same period last year, and by $628,000 from the previous quarter.

Provision for loan and lease losses was $281,000 for the third quarter of 2015, up $340,000 from the negative provision of $59,000 reported for third quarter of 2014. The increased provision expense over the third quarter of 2014 is primarily due to growth in the loan portfolio.

The Company’s allowance for loan and lease losses totaled $31.0 million at September 30, 2015. The allowance represented 0.97% of total originated loans at September 30, 2015, compared to 0.99% at year-end 2014. The allowance for loan and lease losses covered 133.18% of nonperforming loans and leases as of September 30, 2015, compared to 128.43% at year-end 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.89% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.51%, up from 7.40% reported at December 31, 2014

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
09/30/2015

As of
12/31/2014
ASSETS
 
Cash and noninterest bearing balances due from banks $ 105,074 $ 53,921
Interest bearing balances due from banks     2,019     2,149
Cash and Cash Equivalents 107,093 56,070
 
Trading securities, at fair value 7,749 8,992
Available-for-sale securities, at fair value (amortized cost of $1,378,138 at September 30,
2015 and $1,397,458 at December 31, 2014) 1,388,283 1,402,236
Held-to-maturity securities, at amortized cost (fair value of $149,112 at September 30, 2015
and $89,036 at December 31, 2014) 146,300 88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,149,386 2,839,974
Acquired loans and leases, covered (3) 15,576 19,319
Acquired loans and leases, non-covered (3) 469,351 533,995
Less: Allowance for loan and lease losses     30,965     28,997
Net Loans and Leases 3,603,348 3,364,291
 
FDIC indemnification asset 334 1,903
Federal Home Loan Bank stock 23,562 21,259
Bank premises and equipment, net 60,060 59,800
Corporate owned life insurance 75,368 73,725
Goodwill 92,243 92,243
Other intangible assets, net 13,028 14,649
Accrued interest and other assets     77,350     86,225
  Total Assets   $ 5,594,718   $ 5,269,561
 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,447,841 2,247,708
Time 877,422 898,081
Noninterest bearing     1,111,810     1,023,365
Total Deposits 4,437,073 4,169,154
 
Federal funds purchased and securities sold under agreements to repurchase 134,941 147,037
Other borrowings, including certain amounts at fair value of $10,736 at September 30, 2015
and $10,961 at December 31, 2014 398,946 356,541
Trust preferred debentures 37,466 37,337
Other liabilities     68,333     69,909
  Total Liabilities   $ 5,076,759   $ 4,779,978
 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,941,486 at September 30, 2015; and 14,931,354 at December 31, 2014 1,494 1,493
Additional paid-in capital 350,397 348,889
Retained earnings 190,175 165,160
Accumulated other comprehensive loss (22,028) (24,011)
Treasury stock, at cost – 113,787 shares at September 30, 2015, and 111,436 shares
at December 31, 2014 (3,629) (3,400)
 
Total Tompkins Financial Corporation Shareholders’ Equity 516,409 488,131
Noncontrolling interests     1,550     1,452
  Total Equity   $ 517,959   $ 489,583
  Total Liabilities and Equity   $ 5,594,718   $ 5,269,561
 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
  Three Months Ended   Nine Months Ended
(In thousands, except per share data) (Unaudited) 09/30/2015   09/30/2014 09/30/2015   09/30/2014
INTEREST AND DIVIDEND INCOME
Loans $ 39,235 $ 38,298 $ 114,670 $ 112,601
Due from banks 1 0 3 2
Trading securities 86 102 270 321
Available-for-sale securities 7,031 7,718 22,219 23,637
Held-to-maturity securities 915 288 2,185 626
Federal Home Loan Bank stock and Federal Reserve Bank stock     262     212     834     616
Total Interest and Dividend Income     47,530     46,618     140,181     137,803
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 369 387 1,058 1,022
Other deposits 2,284 2,439 6,837 7,324
Federal funds purchased and securities sold under agreements to
repurchase 685 683 2,020 2,263
Trust preferred debentures 583 573 1,726 1,714
Other borrowings     1,223     961     3,596     3,362
Total Interest Expense     5,144     5,043     15,237     15,685
Net Interest Income     42,386     41,575     124,944     122,118
Less: Provision for loan and lease losses     281     (59)     1,412     751
Net Interest Income After Provision for Loan and Lease Losses     42,105     41,634     123,532     121,367
NONINTEREST INCOME
Insurance commissions and fees 7,564 7,520 22,341 21,823
Investment services income 3,674 3,636 11,518 11,549
Service charges on deposit accounts 2,410 2,506 6,812 7,010
Card services income 2,001 1,936 5,844 5,968
Mark-to-market loss on trading securities (69) (87) (206) (181)
Mark-to-market gain on liabilities held at fair value 81 132 226 260
Other income 1,669 1,892 6,390 6,129
Gain on sale of available-for-sale securities     92     20     1,105     151
Total Noninterest Income     17,422     17,555     54,030     52,709
NONINTEREST EXPENSES
Salaries and wages 18,357 17,553 54,319 51,859
Pension and other employee benefits 5,368 4,941 10,843 15,964
Net occupancy expense of premises 2,891 2,969 9,303 9,296
Furniture and fixture expense 1,532 1,451 4,465 4,247
FDIC insurance 729 682 2,218 2,228
Amortization of intangible assets 496 518 1,503 1,570
Other operating expense     8,509     10,423     27,841     30,511
Total Noninterest Expenses     37,882     38,537     110,492     115,675
Income Before Income Tax Expense     21,645     20,652     67,070     58,401
Income Tax Expense     7,115     6,897     22,405     18,951
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation     14,530     13,755     44,665     39,450
Less: Net income attributable to noncontrolling interests     33     33     98     98
Net Income Attributable to Tompkins Financial Corporation   $ 14,497   $ 13,722   $ 44,567   $ 39,352
Basic Earnings Per Share $ 0.97 $ 0.92 $ 2.98 $ 2.65
Diluted Earnings Per Share   $ 0.96   $ 0.92   $ 2.96   $ 2.64
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                                       

Quarter Ended
September 30, 2015

Year to Date Period Ended
September 30, 2015
Year to Date Period Ended
September 30, 2014
                       

Average
Balance
(QTD)

Average
Interest Yield/Rate

Average
Balance
(YTD)

Average
Interest Yield/Rate

Average
Balance
(YTD)

Average
Interest Yield/Rate
(Dollar amounts in thousands)                                    
ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 1,957 $ 1 0.20% $ 1,725 $ 3 0.23% $ 782 $ 2 0.34%
Securities (4)
U.S. Government securities 1,438,436 7,439 2.05% 1,441,360 22,807 2.12% 1,304,141 22,163 2.27%
Trading securities 8,008 86 4.26% 8,437 270 4.28% 10,327 321 4.16%
State and municipal (5) 85,554 783 3.63% 86,846 2,486 3.83% 96,992 3,157 4.35%
Other securities (5) 3,705       31     3.32%       3,740       91     3.25%       4,571       107     3.13%
Total securities 1,535,703 8,339 2.15% 1,540,383 25,654 2.23% 1,416,031 25,748 2.43%
FHLBNY and FRB stock 26,556 263 3.93% 23,771 834 4.69% 20,192 616 4.08%
 
Total loans and leases, net of unearned income (5)(6) 3,574,449       39,913     4.43%       3,479,528       116,547     4.48%       3,218,371       113,924     4.73%
Total interest-earning assets 5,138,665       48,516     3.75%       5,045,407       143,038     3.79%       4,655,376       140,290     4.03%
 
Other assets 347,980 352,808 368,584
 
Total assets 5,486,645 5,398,215 5,023,960
                                                                       
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,322,974 949 0.16% 2,332,674 2,863 0.16% 2,265,787 3,276 0.19%
Time deposits 890,933       1,704     0.76%       904,911       5,032     0.74%       901,283       5,070     0.75%
Total interest-bearing deposits 3,213,907 2,653 0.33% 3,237,585 7,895 0.33% 3,167,070 8,346 0.35%
 
Federal funds purchased & securities sold under
agreements to repurchase 134,620 685 2.02% 136,073 2,020 1.98% 147,775 2,263 2.05%
Other borrowings 470,060 1,223 1.03% 413,819 3,596 1.16% 258,578 3,362 1.74%
Trust preferred debentures 37,438       583     6.18%       37,395       1,726     6.17%       37,227       1,714     6.16%
Total interest-bearing liabilities 3,856,025 5,144 0.53% 3,824,872 15,237 0.53% 3,610,650 15,685 0.58%
 
Noninterest bearing deposits 1,052,669 1,003,318 879,691
Accrued expenses and other liabilities 68,433 65,902 54,040
Total liabilities 4,977,127 4,894,092 4,544,381
 
Tompkins Financial Corporation Shareholders’ equity 507,984 502,622 478,078
Noncontrolling interest 1,534 1,501 1,501
Total equity 509,518 504,123 479,579
 
Total liabilities and equity $ 5,486,645 $ 5,398,215 $ 5,023,960
Interest rate spread       3.22%       3.26%       3.45%
Net interest income/margin on earning assets 43,373 3.35% 127,801 3.39% 124,605 3.58%
 
Tax Equivalent Adjustment (987) (2,857) (2,487)
 
Net interest income per consolidated financial statements           $   42,386                 $   124,944                 $   122,118      
 
 
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
                                               
(In thousands, except per share data)     Quarter-Ended   Year-Ended
    Sep-15       Jun-15       Mar-15       Dec-14       Sep-14       Dec-14
                     
Period End Balance Sheet                                                
Securities   $   1,542,332   $   1,536,374   $   1,555,597   $   1,499,396   $   1,431,837   $   1,499,396

Originated loans and leases, net of unearned income
and deferred costs and fees (2)

      3,149,386       3,013,968       2,898,533       2,839,974       2,674,971       2,839,974
Acquired loans and leases (3)       484,927       507,963       529,024       553,314       582,498       553,314
Allowance for loan and lease losses       30,965       30,091       29,485       28,997       27,786       28,997
Total assets       5,594,718       5,436,136       5,357,533       5,269,561       5,090,919       5,269,561
Total deposits       4,437,073       4,204,089       4,282,766       4,169,154       4,212,860       4,169,154

Federal funds purchased and securities sold under
agreements to repurchase

      134,941       131,063       135,769       147,037       128,368       147,037
Other borrowings       398,946       493,326       330,850       356,541       166,509       356,541
Trust preferred debentures       37,466       37,423       37,380       37,337       37,298       37,337
Total common equity       516,409       503,877       502,811       488,131       489,061       488,131
Total equity       517,959       505,394       504,296       489,583       490,611       489,583
 
Average Balance Sheet                                                
Average earning assets   $   5,138,665   $   5,038,586   $   4,956,972   $   4,799,027   $   4,695,860   $   4,691,582
Average assets       5,486,645       5,391,114       5,315,002       5,193,347       5,058,608       5,066,655
Average interest-bearing liabilities       3,856,025       3,835,430       3,782,355       3,668,311       3,587,673       3,625,184
Average equity       509,518       505,667       497,047       495,531       489,920       483,599
 
Share data                                                
Weighted average shares outstanding (basic)       14,739,915       14,751,844       14,701,397       14,639,631       14,711,709       14,676,622
Weighted average shares outstanding (diluted)       14,866,735       14,878,107       14,837,935       14,765,855       14,795,343       14,789,624
Period-end shares outstanding       14,905,576       14,942,107       14,962,079       14,895,444       14,794,092       14,895,444
Common equity book value per share   $   34.65   $   33.72   $   33.61   $   32.77   $   33.06   $   32.77
Tangible book value per share (Non-GAAP)   $   27.64   $   26.71   $   26.56   $   25.66   $   25.87   $   25.66
 
Income Statement                                                
Net interest income   $   42,386   $   41,330   $   41,228   $   41,692   $   41,575   $   163,810
Provision (Credit) for loan/lease losses       281       922       209       1,555       (59)       2,306
Noninterest income       17,422       18,962       17,646       18,056       17,555       70,765
Noninterest expense       37,882       32,918       39,692       39,018       38,537       154,693
Income tax expense       7,115       9,030       6,260       6,453       6,897       25,404
Net income attributable to Tompkins Financial Corporation       14,497       17,390       12,680       12,689       13,722       52,041
Noncontrolling interests       33       32       33       33       33       131
Basic earnings per share (9)   $   0.97   $   1.16   $   0.85   $   0.86   $   0.92   $   3.51
Diluted earnings per share (9)   $   0.96   $   1.15   $   0.84   $   0.85   $   0.92   $   3.48
 
Nonperforming Assets                                                
Originated nonaccrual loans and leases   $   14,821   $   14,566   $   13,811   $   14,299   $   16,319   $   14,299
Acquired nonaccrual loans and leases       4,908       5,030       4,683       4,729       4,998       4,729
Originated loans and leases 90 days past due and accruing       57       58       236       106       395       106
Troubled debt restructurings not included above       3,465       1,939       1,589       3,444       3,800       3,444
Total nonperforming loans and leases       23,251       21,593       20,319       22,578       25,512       22,578
OREO (8)       3,188       2,570       5,816       5,683       6,533       5,683
Total nonperforming assets   $   26,439   $   24,163   $   26,135   $   28,261   $   32,045   $   28,261
 
    Quarter-Ended   Year-Ended
Delinquency - Originated loan and lease portfolio       Sep-15       Jun-15       Mar-15       Dec-14       Sep-14       Dec-14
Loans and leases 30-89 days past due and
accruing (2)   $   3,550   $   3,315   $   2,438   $   6,849   $   3,811   $   6,849
Loans and leases 90 days past due and accruing (2)       57       58       236       106       395       106
Total originated loans and leases past due and accruing (2)       3,607       3,373       2,674       6,955       4,206       6,955
 
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)   $   309   $   455   $   547   $   533   $   0   $   533
Covered loans and leases 90 days or more past
due and accruing (3)(7)       508       674       682       914       1,149       914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)       1,028       917       2,546       1,186       736       1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)       2,069       3,031       2,811       2,614       3,171       2,614
Total acquired loans and leases past due and accruing       3,914       5,077       6,586       5,247       5,056       5,247
Total loans and leases past due and accruing   $   7,521   $   8,450   $   9,260   $   12,202   $   9,262   $   12,202
 
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period   $   29,428   $   28,690   $   28,156   $   27,185   $   26,752   $   26,700
Provision (Credit) for loan and lease losses       173       769       340       1,102       (264)       1,293
Net loan and lease charge-offs (recoveries)       (849)       31       (194)       131       (697)       (163)
Allowance for loan and lease losses (originated 30,450 29,428 28,690 28,156 27,185 28,156
loan portfolio) - balance at end of period   $     $     $     $     $     $  
 
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period   $   663   $   795   $   841   $   601   $   765   $   1,270
Provision (Credit) for loan and lease losses       108       153       (131)       453       205       1,013
Net loan and lease charge-offs (recoveries)       256       285       (85)       213       369       1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period       515       663       795       841       601       841
Total allowance for loan and lease losses   $   30,965   $   30,091   $   29,485   $   28,997   $   27,786   $   28,997
 
Loan Classification - Originated Portfolio                                                
Special Mention   $   25,133   $   25,706   $   34,965   $   36,331   $   27,854   $   36,331
Substandard       19,937       21,600       19,150       19,970       25,889       19,970
Loan Classification - Acquired Portfolio                                                
Special Mention       1,446       1,589       5,053       5,758       7,605       5,758
Substandard       23,683       21,932       21,752       21,567       24,034       21,567
Loan Classifications - Total Portfolio                                                
Special Mention       26,579       27,295       40,018       42,089       35,459       42,089
Substandard       43,620       43,532       40,902       41,537       49,923       41,537
 
                                             
RATIO ANALYSIS     Quarter-Ended   Year-Ended
Credit Quality       Sep-15       Jun-15       Mar-15       Dec-14       Sep-14       Dec-14
Nonperforming loans and leases/total loans and leases (7)       0.64%       0.61%       0.59%       0.67%       0.78%       0.67%
Nonperforming assets/total assets       0.47%       0.44%       0.49%       0.54%       0.63%       0.54%
Allowance for originated loan and lease losses/total originated loans and leases       0.97%       0.98%       0.99%       0.99%       1.02%       0.99%
Allowance/nonperforming loans and leases       133.18%       139.36%       145.11%       128.43%       108.92%       128.43%
Net loan and lease losses (recoveries) annualized/total average loans and leases       (0.07%)       0.04%       (0.03%)       0.04%       (0.04%)       0.04%
 
Capital Adequacy (period-end)                                                
Tier 1 capital / average assets *       8.89%       8.92%       8.85%       8.75%       8.85%       8.75%
Total capital / risk-weighted assets *       13.29%       13.46%       13.37%       13.60%       13.92%       13.60%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
 
Profitability                                                
Return on average assets *       1.05%       1.29%       0.97%       0.97%       1.08%       1.03%
Return on average equity *       11.29%       13.79%       10.35%       10.16%       11.11%       10.76%
Net interest margin (TE) *       3.35%       3.37%       3.45%       3.53%       3.58%       3.57%
* Quarterly ratios have been annualized
 
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share                                
Net income available to common shareholders   $   14,497   $   17,390   $   12,680   $   12,689   $   13,722   $   52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards       189       234       182       150       119       503
Adjusted net income available to common shareholders       14,308       17,156       12,498       12,539       13,603       51,538
Gain on pension plan curtailment (net of tax)       0       (3,602)       0       0       0       0
Net operating income (Non-GAAP)       14,308       13,554       12,498       12,539       13,603       51,538
Weighted average shares outstanding (diluted)       14,866,735       14,878,107       14,837,935       14,765,855       14,795,343       14,789,624
Adjusted diluted earnings per share (Non-GAAP) (9)   $   0.96   $   0.91   $   0.84   $   0.85   $   0.92   $   3.48
 
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets                                
Total Common equity   $   516,409   $   503,877   $   502,811   $   488,131   $   489,061   $   488,131
Less: Goodwill and intangibles (10)       104,349       104,845       105,344       105,852       106,377       105,852
Tangible common equity       412,060       399,032       397,467       382,279       382,684       382,279
Total assets       5,594,718       5,436,136       5,357,533       5,269,561       5,090,919       5,269,561
Less: Goodwill and intangibles (10)       104,349       104,845       105,344       105,852       106,377       105,852
Tangible assets       5,490,369       5,331,291       5,252,189       5,163,709       4,984,542       5,163,709
Tangible common equity / tangible assets (Non-GAAP)       7.51%       7.48%       7.57%       7.40%       7.68%       7.40%
 
                                               
Non-GAAP Disclosure - Return on Average     Quarter-Ended   Year-Ended
Tangible Common Equity       Sep-15       Jun-15       Mar-15       Dec-14       Sep-14       Dec-14
Net income available to common shareholders   $   14,497   $   17,390   $   12,680   $   12,689   $   13,722   $   52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards       189       234       182       150       119       503
Adjusted net income available to common shareholders       14,308       17,156       12,498       12,539       13,603       51,538
Gain on pension plan curtailment (net of tax)       0       (3,602)       0       0       0       0
Net operating income (Non-GAAP)       14,308       13,554       12,498       12,539       13,603       51,538
Amortization of intangibles (net of tax)       298       300       304       315       311       1,257
Adjusted net operating income (Non-GAAP)       14,606       13,854       12,802       12,854       13,914       52,795
Average common equity       507,984       504,166       495,579       493,986       488,386       482,087
Less: Average goodwill and intangibles (10)       104,633       105,130       105,644       106,151       106,471       106,748
Average tangible common equity capital       403,351       399,036       389,935       387,835       381,915       375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)       14.37%       13.93%       13.32%       13.15%       14.46%       14.07%
 
 

Non-GAAP Disclosure - Tangible Book Value Per Share

                                               

Total common equity

 

$

 

516,409

 

$

 

503,877

 

$

 

502,811

 

$

 

488,131

 

$

 

489,061

 

$

 

488,131

Less:  Goodwill and intangibles (10)

     

104,349

     

104,845

     

105,344

     

105,852

     

106,377

     

105,852

Tangible common equity

     

412,060

     

399,032

     

397,467

     

382,279

     

382,684

     

382,279

Ending shares outstanding

     

14,905,576

     

14,942,107

     

14,962,079

     

14,895,444

     

14,794,092

     

14,895,444

Tangible book value per share (Non-GAAP)

 

$

 

27.64

     

26.71

     

26.56

     

25.66

     

25.87

 

$

 

25.66

 
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
        Sep-15   Sep-14
Net income available to common shareholders   $   44,567   $   39,352
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards       609       353
Adjusted net income available to common shareholders       43,958       38,999
Gain on pension plan curtailment       (3,602)       0
Net operating income (Non-GAAP)       40,356       38,999
Weighted average shares outstanding (diluted)       14,861,003       14,797,520
Adjusted diluted earnings per share (Non-GAAP)   $   2.72   $   2.64
 

(1)

Federal Reserve peer ratio as of June 30, 2015, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.

(2)

"Originated" equals loans and leases not included by definition in "acquired loans".

(3)

"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.

(4)

Average balances and yields on available-for-sale securities are based on historical amortized cost.

(5)

Interest income includes the tax effects of taxable-equivalent basis.

(6)

Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2014.

(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