ITHACA, N.Y.--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation reported record diluted earnings per share of $5.37 for the full year of 2019, an increase of 0.4% compared to the $5.35 per share reported for the twelve-month period ended December 31, 2018. For the fourth quarter of 2019, diluted earnings per share of $1.40 were up 13.8% over the $1.23 per share reported in the same quarter of 2018.
President and CEO, Stephen S. Romaine said, “We are pleased to report record earnings per share for the year ended December 31, 2019. When compared to the third quarter of 2019, the fourth quarter of 2019 benefited from growth in average loans and deposits, along with a slight improvement in net interest margin. Credit quality remains strong, and during the quarter we saw improving trends in classified and criticized credits.”
SELECTED HIGHLIGHTS FOR THE FOURTH QUARTER:
- Total loans of $4.9 billion were up 1.7% over total loans at December 31, 2018.
- Total deposits of $5.2 billion reflect an increase of 6.6% over the prior year end.
- Noninterest bearing deposits of $1.5 billion increased by 4.2% over December 31, 2018.
- Net interest margin was 3.44% for the fourth quarter of 2019, up from 3.34% reported for the fourth quarter of 2018, and up from 3.43% for the third quarter of 2019.
- Return on average equity was 12.59% for the fourth quarter of 2019, up from the 12.38% reported for the quarter ended December 31, 2018, and up from 12.15% for the third quarter of 2019.
NET INTEREST INCOME
Net interest income of $53.2 million for the fourth quarter of 2019 was unchanged from the same quarter of the prior year. The net interest margin for the fourth quarter of 2019 was 3.44%, compared to 3.34% reported for the quarter ended December 31, 2018, and 3.43% for the third quarter of 2019. When compared to the third quarter of 2019, the fourth quarter of 2019 saw lower yields on earning assets that were offset by lower funding costs.
For the full year ended December 31, 2019, net interest income of $210.6 million, was down 0.6% from the prior year. The impact of an improved net interest margin in 2019 was slightly offset by average balances in the securities portfolio, which were down $132.1 million or 8.6%.
NONINTEREST INCOME
Noninterest income represented 26.4% of total revenues in 2019, compared to 26.8% in 2018. Noninterest income for the fourth quarter of 2019 was $18.0 million, down 9.5% compared to the same period in 2018. For the full year, noninterest income of $75.4 million was down $2.0 million, or 2.6%, when compared to 2018. The negative variance to prior year was largely due to the fact that results from the fourth quarter of the prior year included higher than normal investment service fees associated with trust and estate activities, as well as approximately $2.5 million related to the collection of nonaccrual interest and fees associated with a loan that was previously charged off. Comparison of full year noninterest income to the prior year was also impacted by $2.9 million of gains on the sale of real estate that were realized in the second quarter of 2018.
NONINTEREST EXPENSE
Noninterest expense was $45.9 million for the fourth quarter of 2019, down 2.8%, from the fourth quarter of 2018. For the full year 2019, noninterest expense was $181.8 million, which was in line with 2018. Other operating expense in 2019 was reduced by $1.5 million of deposit insurance credits received from the FDIC, of which $0.4 million were applied during the fourth quarter of 2019. Noninterest expense in 2018 included $2.5 million related to the write-down of leases on vacated space, which was recognized in the second quarter of 2018.
INCOME TAX EXPENSE
The Company's effective tax rate was 19.8% in the fourth quarter of 2019, compared to 20.4% for the same period in 2018. For calendar year 2019, the Company’s effective tax rate was 20.5% compared to 20.9% for 2018.
ASSET QUALITY
Asset quality trends remained strong in the fourth quarter of 2019, as the ratio of nonperforming assets to total assets of 0.47% at December 31, 2019 was unchanged from the prior quarter end, and was up from 0.42% at December 31, 2018. Nonperforming asset levels at December 31, 2019 remained below the most recent Federal Reserve Board Peer Group Average1 of 0.60%.
The provision for loan and lease losses for the fourth quarter of 2019 was a negative $1.0 million compared to an expense of $2.1 million in the fourth quarter of 2018. For the full year, the provision for loan and lease losses was $1.4 million in 2019, compared to $3.9 million for the same period in 2018. Net charge-offs for the year ended December 31, 2019 were $4.9 million, compared to $0.3 million reported for the year-to-date period ended December 31, 2018. The year over year increase in net charge-offs was mainly attributable to the charge-off of one commercial real estate credit in the first quarter of 2019.
The Company’s allowance for originated loan and lease losses totaled $39.8 million at December 31, 2019, and represented 0.85% of total originated loans and leases, down from 0.89% at September 30, 2019, and 0.95% at December 31, 2018. Improving trends in classified and criticized loans in the most recent quarter, along with favorable trends in certain qualitative factors contributed to the lower allowance level at December 31, 2019. The allowance at December 31, 2018 included a specific reserve of $3.0 million related to one commercial real estate credit that was subsequently charged off in the first quarter of 2019, as noted above. The total allowance represented 126.90% of total nonperforming loans and leases at December 31, 2019, compared to 137.46% at September 30, 2019, and 163.25% at December 31, 2018.
CAPITAL POSITION
Capital ratios remained well above the regulatory minimums for well capitalized institutions. The ratio of Tier 1 capital to average assets was 9.61% at December 31, 2019, improved from 9.43% at September 30, 2019, and 9.05% at December 31, 2018. During the year ended December 31, 2019, the Company repurchased 376,021 common shares at an average price of $79.43 per share. During 2018, the Company repurchased 32,483 common shares at an average price of $75.36 per share.
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.
The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.
TOMPKINS FINANCIAL CORPORATION |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION |
||||||
(In thousands, except share and per share data) |
As of |
As of |
||||
ASSETS |
12/31/2019 |
12/31/2018 |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
136,010 |
|
$ |
78,524 |
|
Interest bearing balances due from banks |
1,972 |
|
1,865 |
|
||
Cash and Cash Equivalents |
137,982 |
|
80,389 |
|
||
|
|
|
||||
Available-for-sale securities, at fair value (amortized cost of $1,293,239 at December 31, 2019 and $1,363,902 at December 31, 2018) |
1,298,587 |
|
1,332,658 |
|
||
Held-to-maturity securities, at amortized cost (fair value of $0 at December 31, 2019 and $139,377 at December 31, 2018) |
0 |
|
140,579 |
|
||
Equity securities, at fair value (amortized cost $1,000 at December 31, 2019 and $1,000 at December 31, 2018) |
915 |
|
887 |
|
||
Originated loans and leases, net of unearned income and deferred costs and fees |
4,697,401 |
|
4,568,741 |
|
||
Acquired loans |
220,149 |
|
265,198 |
|
||
Less: Allowance for loan and lease losses |
39,892 |
|
43,410 |
|
||
Net Loans and Leases |
4,877,658 |
|
4,790,529 |
|
||
|
|
|
||||
Federal Home Loan Bank and other stock |
33,695 |
|
52,262 |
|
||
Bank premises and equipment, net |
94,355 |
|
97,202 |
|
||
Corporate owned life insurance |
82,961 |
|
81,928 |
|
||
Goodwill |
92,447 |
|
92,283 |
|
||
Other intangible assets, net |
6,223 |
|
7,628 |
|
||
Accrued interest and other assets |
100,800 |
|
82,091 |
|
||
Total Assets |
$ |
6,725,623 |
|
$ |
6,758,436 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
3,080,686 |
|
2,853,190 |
|
||
Time |
675,014 |
|
637,295 |
|
||
Noninterest bearing |
1,457,221 |
|
1,398,474 |
|
||
Total Deposits |
5,212,921 |
|
4,888,959 |
|
||
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
60,346 |
|
81,842 |
|
||
Other borrowings |
658,100 |
|
1,076,075 |
|
||
Trust preferred debentures |
17,035 |
|
16,863 |
|
||
Other liabilities |
114,167 |
|
73,826 |
|
||
Total Liabilities |
$ |
6,062,569 |
|
$ |
6,137,565 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,014,499 at December 31, 2019; and 15,348,287 at December 31, 2018 |
1,501 |
|
1,535 |
|
||
Additional paid-in capital |
338,507 |
|
366,595 |
|
||
Retained earnings |
370,477 |
|
319,396 |
|
||
Accumulated other comprehensive loss |
(43,564 |
) |
(63,165 |
) |
||
Treasury stock, at cost – 123,956 shares at December 31, 2019, and 122,227 shares at December 31, 2018 |
(5,279 |
) |
(4,902 |
) |
||
Total Tompkins Financial Corporation Shareholders’ Equity |
661,642 |
|
619,459 |
|
||
|
|
|
||||
Noncontrolling interests |
1,412 |
|
1,412 |
|
||
Total Equity |
$ |
663,054 |
|
$ |
620,871 |
|
Total Liabilities and Equity |
$ |
6,725,623 |
|
$ |
6,758,436 |
|
|
|
|
||||
TOMPKINS FINANCIAL CORPORATION |
|
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
|
||||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
Twelve Months Ended |
||||||||||
|
12/31/2019 |
12/31/2018 |
12/31/2019 |
12/31/2018 |
||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
||||||||
Loans |
$ |
57,039 |
|
$ |
55,951 |
|
$ |
226,723 |
|
$ |
214,370 |
|
Due from banks |
9 |
|
9 |
|
41 |
|
31 |
|
||||
Available-for-sale securities |
6,406 |
|
7,556 |
|
28,460 |
|
30,377 |
|
||||
Held-to-maturity securities |
568 |
|
865 |
|
3,151 |
|
3,437 |
|
||||
Federal Home Loan Bank and other stock |
561 |
|
944 |
|
3,003 |
|
3,377 |
|
||||
Total Interest and Dividend Income |
64,583 |
|
65,325 |
|
261,378 |
|
251,592 |
|
||||
INTEREST EXPENSE |
|
|
|
|
||||||||
Time certificates of deposits of $250,000 or more |
912 |
|
624 |
|
3,095 |
|
1,712 |
|
||||
Other deposits |
7,399 |
|
5,184 |
|
27,809 |
|
14,883 |
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
33 |
|
37 |
|
143 |
|
152 |
|
||||
Trust preferred debentures |
303 |
|
323 |
|
1,276 |
|
1,227 |
|
||||
Other borrowings |
2,696 |
|
5,921 |
|
18,427 |
|
21,818 |
|
||||
Total Interest Expense |
11,343 |
|
12,089 |
|
50,750 |
|
39,792 |
|
||||
Net Interest Income |
53,240 |
|
53,236 |
|
210,628 |
|
211,800 |
|
||||
Less: Provision for loan and lease losses |
(1,000 |
) |
2,058 |
|
1,366 |
|
3,942 |
|
||||
Net Interest Income After Provision for Loan and Lease Losses |
54,240 |
|
51,178 |
|
209,262 |
|
207,858 |
|
||||
NONINTEREST INCOME |
|
|
|
|
||||||||
Insurance commissions and fees |
6,777 |
|
6,685 |
|
31,091 |
|
29,369 |
|
||||
Investment services income |
4,268 |
|
4,923 |
|
16,434 |
|
17,288 |
|
||||
Service charges on deposit accounts |
2,110 |
|
2,135 |
|
8,321 |
|
8,435 |
|
||||
Card services income |
2,436 |
|
2,484 |
|
10,526 |
|
9,693 |
|
||||
Other income |
2,171 |
|
4,387 |
|
8,416 |
|
13,130 |
|
||||
Net gain (loss) on securities transactions |
210 |
|
(756 |
) |
645 |
|
(466 |
) |
||||
Total Noninterest Income |
17,972 |
|
19,858 |
|
75,433 |
|
77,449 |
|
||||
NONINTEREST EXPENSE |
|
|
|
|
||||||||
Salaries and wages |
23,250 |
|
21,221 |
|
89,399 |
|
85,625 |
|
||||
Other employee benefits |
6,394 |
|
6,231 |
|
23,488 |
|
22,090 |
|
||||
Net occupancy expense of premises |
3,115 |
|
3,436 |
|
13,210 |
|
13,309 |
|
||||
Furniture and fixture expense |
1,921 |
|
1,890 |
|
7,815 |
|
7,351 |
|
||||
Amortization of intangible assets |
421 |
|
437 |
|
1,673 |
|
1,771 |
|
||||
Other operating expense |
10,799 |
|
14,013 |
|
46,249 |
|
50,921 |
|
||||
Total Noninterest Expenses |
45,900 |
|
47,228 |
|
181,834 |
|
181,067 |
|
||||
Income Before Income Tax Expense |
26,312 |
|
23,808 |
|
102,861 |
|
104,240 |
|
||||
Income Tax Expense |
5,200 |
|
4,866 |
|
21,016 |
|
21,805 |
|
||||
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
21,112 |
|
18,942 |
|
81,845 |
|
82,435 |
|
||||
Less: Net Income Attributable to Noncontrolling Interests |
32 |
|
32 |
|
127 |
|
127 |
|
||||
Net Income Attributable to Tompkins Financial Corporation |
$ |
21,080 |
|
$ |
18,910 |
|
$ |
81,718 |
|
$ |
82,308 |
|
Basic Earnings Per Share |
$ |
1.41 |
|
$ |
1.24 |
|
$ |
5.39 |
|
$ |
5.39 |
|
Diluted Earnings Per Share |
$ |
1.40 |
|
$ |
1.23 |
|
$ |
5.37 |
|
$ |
5.35 |
|
|
|
|
|
|
||||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Quarter Ended |
Year Ended |
Year Ended |
|||||||||||||||||||||
|
|
|
|
December 31, 2019 |
|
December 31, 2019 |
|
December 31, 2018 |
||||||||||||||||||
|
|
|
|
Average |
|
|
|
Average |
|
|
|
Average |
|
|
||||||||||||
|
|
|
|
Balance |
|
Average |
|
Balance |
|
Average |
|
Balance |
|
Average |
||||||||||||
(Dollar amounts in thousands) |
|
Quarter Ended |
Interest |
Yield/ Rate |
|
Year Ended |
Interest |
Yield/ Rate |
|
Year Ended |
Interest |
Yield/ Rate |
||||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest-bearing balances due from banks |
$ |
2,763 |
|
$ |
9 |
|
1.29 |
% |
$ |
1,647 |
$ |
41 |
|
2.49 |
% |
$ |
2,139 |
$ |
31 |
1.45 |
% |
||||
|
Securities (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
U.S. Government securities |
|
1,192,035 |
|
6,421 |
2.14 |
% |
|
1,301,813 |
29,411 |
2.26 |
% |
|
1,429,875 |
31,645 |
2.21 |
% |
||||||||
|
|
State and municipal (3) |
|
93,275 |
|
643 |
2.73 |
% |
|
93,168 |
2,547 |
2.73 |
% |
|
97,116 |
2,520 |
2.59 |
% |
||||||||
|
|
Other securities (3) |
|
3,417 |
|
37 |
4.30 |
% |
|
3,417 |
158 |
4.62 |
% |
|
3,491 |
153 |
4.38 |
% |
||||||||
|
|
Total securities |
|
1,288,727 |
|
7,101 |
2.19 |
% |
|
1,398,398 |
32,116 |
2.30 |
% |
|
1,530,482 |
34,318 |
2.24 |
% |
||||||||
|
FHLBNY and FRB stock |
|
25,469 |
|
561 |
8.74 |
% |
|
38,308 |
3,003 |
7.84 |
% |
|
51,815 |
3,377 |
6.52 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total loans and leases, net of unearned income (3)(4) |
|
4,871,483 |
|
57,332 |
4.67 |
% |
|
4,830,089 |
227,869 |
4.72 |
% |
|
4,757,583 |
215,648 |
4.53 |
% |
|||||||||
|
Total interest-earning assets |
|
6,188,442 |
|
65,003 |
4.17 |
% |
|
6,268,442 |
263,029 |
4.20 |
% |
|
6,342,019 |
253,374 |
4.00 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets |
|
424,760 |
|
|
|
|
411,136 |
|
|
|
350,659 |
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total assets |
$ |
6,613,202 |
|
|
|
$ |
6,679,578 |
|
|
$ |
6,692,678 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Interest bearing checking, savings & money market |
$ |
3,140,707 |
|
5,234 |
0.66 |
% |
$ |
3,007,221 |
20,099 |
0.67 |
% |
$ |
2,822,747 |
9,847 |
0.35 |
% |
||||||||
|
|
Time deposits |
|
692,541 |
|
3,077 |
1.76 |
% |
|
676,106 |
10,805 |
1.60 |
% |
|
664,788 |
6,748 |
1.02 |
% |
||||||||
|
|
Total interest-bearing deposits |
|
3,833,248 |
|
8,311 |
0.86 |
% |
|
3,683,327 |
30,904 |
0.84 |
% |
|
3,487,535 |
16,595 |
0.48 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased & securities sold under |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
agreements to repurchase |
|
54,907 |
|
33 |
0.24 |
% |
|
59,825 |
143 |
0.24 |
% |
|
63,472 |
152 |
0.24 |
% |
||||||||
Other borrowings |
|
469,410 |
|
2,696 |
2.28 |
% |
|
762,993 |
18,427 |
2.42 |
% |
|
1,086,847 |
21,818 |
2.01 |
% |
||||||||||
Trust preferred debentures |
|
17,007 |
|
303 |
7.07 |
% |
|
16,943 |
1,276 |
7.53 |
% |
|
16,771 |
1,227 |
7.32 |
% |
||||||||||
|
Total interest-bearing liabilities |
|
4,374,572 |
|
11,343 |
1.03 |
% |
|
4,523,088 |
50,750 |
1.12 |
% |
|
4,654,625 |
39,792 |
0.85 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest bearing deposits |
|
1,471,377 |
|
|
|
|
1,403,330 |
|
|
|
1,382,550 |
|
|
|||||||||||||
Accrued expenses and other liabilities |
|
102,812 |
|
|
|
|
101,819 |
|
|
|
64,559 |
|
|
|||||||||||||
|
Total liabilities |
|
5,948,761 |
|
|
|
|
6,028,237 |
|
|
|
6,101,734 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tompkins Financial Corporation Shareholders’ equity |
|
662,940 |
|
|
|
|
649,871 |
|
|
|
589,475 |
|
|
|||||||||||||
Noncontrolling interest |
|
1,501 |
|
|
|
|
1,470 |
|
|
|
1,469 |
|
|
|||||||||||||
|
Total equity |
|
664,441 |
|
|
|
|
651,341 |
|
|
|
590,944 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total liabilities and equity |
$ |
6,613,202 |
|
|
|
$ |
6,679,578 |
|
|
$ |
6,692,678 |
|
|
||||||||||||
Interest rate spread |
|
|
|
3.14 |
% |
|
|
|
3.07 |
% |
|
|
|
3.14 |
% |
|||||||||||
|
Net interest income/margin on earning assets |
|
|
53,660 |
3.44 |
% |
|
|
212,279 |
3.39 |
% |
|
|
213,582 |
3.37 |
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax equivalent adjustments |
|
|
(420) |
|
|
|
(1,651) |
|
|
|
(1,782) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net interest income per consolidated financial statements |
|
|
$ |
53,240 |
|
|
|
$ |
210,628 |
|
|
|
$ |
211,800 |
|
||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||||||||
Period End Balance Sheet |
|
Dec-19 |
|
Sep-19 |
|
Jun-19 |
|
Mar-19 |
|
Dec-18 |
|
Dec-19 |
||||||
Securities |
$ |
1,299,502 |
$ |
1,282,026 |
$ |
1,330,719 |
$ |
1,484,151 |
$ |
1,474,124 |
$ |
1,299,502 |
||||||
Total Loans |
|
4,917,550 |
|
4,857,073 |
|
4,855,802 |
|
4,789,700 |
|
4,833,939 |
|
4,917,550 |
||||||
Allowance for loan and lease losses |
|
39,892 |
|
41,371 |
|
40,790 |
|
40,328 |
|
43,410 |
|
39,892 |
||||||
Total assets |
|
6,725,623 |
|
6,627,982 |
|
6,654,390 |
|
6,738,719 |
|
6,758,436 |
|
6,725,623 |
||||||
Total deposits |
|
5,212,921 |
|
5,369,990 |
|
4,988,897 |
|
4,989,925 |
|
4,888,959 |
|
5,212,921 |
||||||
Federal funds purchased and securities sold under agreements to repurchase |
|
60,346 |
|
50,541 |
|
63,978 |
|
66,918 |
|
81,842 |
|
60,346 |
||||||
Other borrowings |
|
658,100 |
|
429,000 |
|
824,562 |
|
923,427 |
|
1,076,075 |
|
658,100 |
||||||
Trust preferred debentures |
|
17,035 |
|
16,992 |
|
16,949 |
|
16,906 |
|
16,863 |
|
17,035 |
||||||
Total common equity |
|
661,642 |
|
658,358 |
|
656,201 |
|
645,823 |
|
619,459 |
|
661,642 |
||||||
Total equity |
|
663,054 |
|
659,865 |
|
657,677 |
|
647,267 |
|
620,871 |
|
663,054 |
||||||
Average Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average earning assets |
$ |
6,188,442 |
|
$ |
6,203,078 |
|
$ |
6,337,983 |
|
$ |
6,350,325 |
|
$ |
6,364,113 |
|
$ |
6,268,440 |
|
Average assets |
|
6,613,202 |
|
|
6,621,412 |
|
|
6,742,409 |
|
|
6,743,360 |
|
|
6,710,944 |
|
|
6,679,578 |
|
Average interest-bearing liabilities |
|
4,374,572 |
|
|
4,415,079 |
|
|
4,638,249 |
|
|
4,668,875 |
|
|
4,606,536 |
|
|
4,523,088 |
|
Average equity |
|
664,441 |
|
|
659,650 |
|
|
650,079 |
|
|
630,731 |
|
|
606,238 |
|
|
651,341 |
|
Share data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
14,726,023 |
|
14,827,114 |
|
15,019,710 |
|
15,060,175 |
|
15,057,673 |
|
14,907,057 |
|
||||||
Weighted average shares outstanding (diluted) |
14,790,503 |
|
14,887,626 |
|
15,085,945 |
|
15,136,523 |
|
15,135,750 |
|
14,973,951 |
|
||||||
Period-end shares outstanding |
14,978,589 |
|
14,975,750 |
|
15,160,719 |
|
15,314,078 |
|
15,312,377 |
|
14,978,589 |
|
||||||
Common equity book value per share |
$ |
44.17 |
|
$ |
43.96 |
|
$ |
43.28 |
|
$ |
42.17 |
|
$ |
40.45 |
|
$ |
44.17 |
|
Tangible book value per share (Non-GAAP)** |
$ |
37.64 |
|
$ |
37.40 |
|
$ |
36.77 |
|
$ |
35.73 |
|
$ |
33.98 |
|
$ |
37.64 |
|
** See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP. |
||||||||||||||||||
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
$ |
53,240 |
|
$ |
53,156 |
|
$ |
52,318 |
|
$ |
51,914 |
|
$ |
53,236 |
|
$ |
210,628 |
|
Provision for loan/lease losses |
|
(1,000 |
) |
|
1,320 |
|
|
601 |
|
|
445 |
|
|
2,058 |
|
|
1,366 |
|
Noninterest income |
|
17,972 |
|
|
19,534 |
|
|
18,520 |
|
|
19,407 |
|
|
19,858 |
|
|
75,433 |
|
Noninterest expense |
|
45,900 |
|
|
45,655 |
|
|
46,070 |
|
|
44,209 |
|
|
47,228 |
|
|
181,834 |
|
Income tax expense |
|
5,200 |
|
|
5,478 |
|
|
4,743 |
|
|
5,595 |
|
|
4,866 |
|
|
21,016 |
|
Net income attributable to Tompkins Financial Corporation |
|
21,080 |
|
|
20,206 |
|
|
19,392 |
|
|
21,040 |
|
|
18,911 |
|
|
81,718 |
|
Noncontrolling interests |
|
32 |
|
|
31 |
|
|
32 |
|
|
32 |
|
|
31 |
|
|
127 |
|
Basic earnings per share (5) |
$ |
1.41 |
|
$ |
1.34 |
|
$ |
1.27 |
|
$ |
1.37 |
|
$ |
1.24 |
|
$ |
5.39 |
|
Diluted earnings per share (5) |
$ |
1.40 |
|
$ |
1.34 |
|
$ |
1.27 |
|
$ |
1.37 |
|
$ |
1.23 |
|
$ |
5.37 |
|
Nonperforming Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Originated nonaccrual loans and leases |
$ |
22,485 |
|
$ |
21,404 |
|
$ |
16,543 |
|
$ |
15,165 |
|
$ |
19,340 |
|
$ |
22,485 |
|
Acquired nonaccrual loans and leases |
|
1,796 |
|
|
2,164 |
|
|
2,363 |
|
|
2,579 |
|
|
2,856 |
|
|
1,796 |
|
Originated loans and leases 90 days past due and accruing |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
Troubled debt restructuring not included above |
|
7,154 |
|
|
6,528 |
|
|
4,889 |
|
|
5,234 |
|
|
4,395 |
|
|
7,154 |
|
Total nonperforming loans and leases |
|
31,435 |
|
|
30,096 |
|
|
23,795 |
|
|
22,978 |
|
|
26,591 |
|
|
31,435 |
|
OREO |
|
428 |
|
|
888 |
|
|
2,229 |
|
|
1,595 |
|
|
1,595 |
|
|
428 |
|
Total nonperforming assets |
$ |
31,863 |
|
$ |
30,984 |
|
$ |
26,024 |
|
$ |
24,573 |
|
$ |
28,186 |
|
$ |
31,863 |
|
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
|
|
Quarter-Ended |
Year-Ended |
||||||||||||||||
Delinquency - Originated loan and lease portfolio |
|
Dec-19 |
|
|
Sep-19 |
|
|
Jun-19 |
|
|
Mar-19 |
|
|
Dec-18 |
|
|
Dec-19 |
|
|
Loans and leases 30-89 days past due and |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
accruing |
$ |
3,559 |
$ |
3,287 |
|
$ |
3,883 |
$ |
4,193 |
$ |
7,796 |
$ |
3,559 |
||||||
Loans and leases 90 days past due and accruing |
|
0 |
|
0 |
|
|
0 |
|
0 |
|
0 |
|
0 |
||||||
Total originated loans and leases past due and accruing |
|
3,559 |
|
3,287 |
|
|
3,883 |
|
4,193 |
|
7,796 |
|
3,559 |
||||||
Delinquency - Acquired loan and lease portfolio |
||||||||||||||||||
Loans 30-89 days past due and accruing (6) |
$ |
165 |
|
$ |
232 |
|
$ |
493 |
|
$ |
474 |
|
$ |
67 |
|
$ |
165 |
|
Loans 90 days or more past due |
|
794 |
|
|
1,219 |
|
|
1,229 |
|
|
1,218 |
|
|
1,316 |
|
|
794 |
|
Total acquired loans and leases past due and accruing |
|
959 |
|
|
1,451 |
|
|
1,722 |
|
|
1,692 |
|
|
1,383 |
|
|
959 |
|
Total loans and leases past due and accruing |
$ |
4,518 |
|
$ |
4,738 |
|
$ |
5,605 |
|
$ |
5,885 |
|
$ |
9,179 |
|
$ |
4,518 |
|
Allowance for Loan Losses - Originated loan and lease portfolio |
||||||||||||||||||
Balance at beginning of period |
$ |
41,231 |
|
$ |
40,689 |
|
$ |
40,245 |
|
$ |
43,321 |
|
$ |
41,289 |
|
$ |
43,321 |
|
Provision (credit) for loan and lease losses |
|
(997 |
) |
|
1,245 |
|
|
590 |
|
|
480 |
|
|
2,046 |
|
|
1,318 |
|
Net loan and lease (recoveries) charge-offs |
|
420 |
|
|
703 |
|
|
146 |
|
|
3,556 |
|
|
14 |
|
|
4,825 |
|
Allowance for loan and lease losses (originated |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
loan portfolio) - balance at end of period |
$ |
39,814 |
|
$ |
41,231 |
|
$ |
40,689 |
|
$ |
40,245 |
|
$ |
43,321 |
|
$ |
39,814 |
|
Allowance for Loan Losses - Acquired loan and lease portfolio |
||||||||||||||||||
Balance at beginning of period |
$ |
140 |
|
$ |
101 |
|
$ |
83 |
|
$ |
89 |
|
$ |
69 |
|
$ |
89 |
|
Provision (credit) for loan and lease losses |
|
(3 |
) |
|
75 |
|
|
11 |
|
|
(35 |
) |
|
12 |
|
|
48 |
|
Net loan and lease (recoveries) charge-offs |
|
59 |
|
|
36 |
|
|
(7 |
) |
|
(29 |
) |
|
(8 |
) |
|
59 |
|
Allowance for loan and lease losses (acquired |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
loan portfolio) - balance at end of period |
|
78 |
|
|
140 |
|
|
101 |
|
|
83 |
|
|
89 |
|
|
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total allowance for loan and lease losses |
$ |
39,892 |
|
$ |
41,371 |
|
$ |
40,791 |
|
$ |
40,328 |
|
$ |
43,410 |
|
$ |
39,892 |
|
Loan Classification - Originated Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Special Mention |
$ |
29,800 |
|
$ |
41,314 |
|
$ |
36,619 |
|
$ |
33,689 |
|
$ |
28,074 |
|
$ |
29,800 |
|
Substandard |
|
58,092 |
|
|
58,873 |
|
|
44,770 |
|
|
35,895 |
|
|
43,963 |
|
|
58,092 |
|
Loan Classification - Acquired Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Special Mention |
|
0 |
|
|
261 |
|
|
265 |
|
|
270 |
|
|
452 |
|
|
0 |
|
Substandard |
|
2,407 |
|
|
2,809 |
|
|
2,857 |
|
|
2,830 |
|
|
2,914 |
|
|
2,407 |
|
Loan Classifications - Total Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Special Mention |
|
29,800 |
|
|
41,575 |
|
|
36,884 |
|
|
33,959 |
|
|
28,526 |
|
|
29,800 |
|
Substandard |
|
60,499 |
|
|
61,682 |
|
|
47,627 |
|
|
38,725 |
|
|
46,877 |
|
|
60,499 |
|
Ratio Analysis
Credit Quality |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nonperforming loans and leases/total loans and leases (6) |
|
0.64 |
% |
|
0.62 |
% |
|
0.49 |
% |
|
0.48 |
% |
|
0.55 |
% |
|
0.64 |
% |
Nonperforming assets/total assets |
|
0.47 |
% |
|
0.47 |
% |
|
0.39 |
% |
|
0.36 |
% |
|
0.42 |
% |
|
0.47 |
% |
Allowance for originated loan and lease losses/total originated loans and leases |
|
0.85 |
% |
|
0.89 |
% |
|
0.88 |
% |
|
0.89 |
% |
|
0.95 |
% |
|
0.85 |
% |
Allowance/nonperforming loans and leases |
|
126.90 |
% |
|
137.46 |
% |
|
171.42 |
% |
|
175.51 |
% |
|
163.25 |
% |
|
126.90 |
% |
Net loan and lease losses annualized/total average loans and leases |
|
0.04 |
% |
|
0.06 |
% |
|
0.01 |
% |
|
0.30 |
% |
|
0.00 |
% |
|
0.10 |
% |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
|
|
Year-Ended |
||||||||||||||||
Capital Adequacy (period-end) |
|
Dec-19 |
|
Sep-19 |
|
Jun-19 |
|
Mar-19 |
|
Dec-18 |
|
Dec-19 |
||||||
Tier 1 Capital (to average assets) |
|
9.61 |
% |
|
9.43 |
% |
|
9.25 |
% |
|
9.24 |
% |
|
9.05 |
% |
|
9.61 |
% |
Common Equity Tier 1 Capital (to risk-weighted assets) |
|
12.33 |
% |
|
12.14 |
% |
|
12.13 |
% |
|
12.19 |
% |
|
11.84 |
% |
|
12.33 |
% |
Profitability |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average assets * |
|
1.26 |
% |
|
1.21 |
% |
|
1.15 |
% |
|
1.27 |
% |
|
1.12 |
% |
|
1.22 |
% |
Return on average equity * |
|
12.59 |
% |
|
12.15 |
% |
|
11.96 |
% |
|
13.53 |
% |
|
12.38 |
% |
|
12.55 |
% |
Net interest margin (TE) * |
|
3.44 |
% |
|
3.43 |
% |
|
3.34 |
% |
|
3.34 |
% |
|
3.34 |
% |
|
3.39 |
% |
* 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 below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.
Reconciliation of Common Equity Book Value Per Share (GAAP) to Tangible Book Value Per Share (non-GAAP) |
||||||||||||||||||
Total common equity |
$ |
661,642 |
|
$ |
658,358 |
|
$ |
656,201 |
|
$ |
645,823 |
|
$ |
619,459 |
|
$ |
661,642 |
|
Less: Goodwill and intangibles (7) |
|
97,855 |
|
|
98,277 |
|
|
98,698 |
|
|
98,694 |
|
|
99,106 |
|
|
97,855 |
|
Tangible common equity (Non-GAAP) |
|
563,787 |
|
|
560,081 |
|
|
557,503 |
|
|
547,129 |
|
|
520,353 |
|
|
563,787 |
|
Ending shares outstanding |
14,978,589 |
|
14,975,750 |
|
15,160,719 |
|
15,314,078 |
|
15,312,377 |
|
14,978,589 |
|
||||||
Tangible book value per share (Non-GAAP) |
$ |
37.64 |
|
$ |
37.40 |
|
$ |
36.77 |
|
$ |
35.73 |
|
$ |
33.98 |
|
$ |
37.64 |
|
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP) |
|
|||
|
Dec-19 |
Dec-18 |
||
Net income available to common shareholders |
$81,718 |
$82,308 |
||
Income attributable to unvested stock-based compensation awards |
1,306 |
1,315 |
||
Net earnings allocated to common shareholders (GAAP) |
80,412 |
80,993 |
||
Weighted average shares outstanding (diluted) |
14,973,951 |
15,132,257 |
||
Diluted earnings per share (5) |
$5.37 |
$5.35 |
||
Adjustments for non-operating income and expense: |
|
|
||
Gain on sale of real estate, net of tax |
0 |
2,227 |
||
Write-down of impaired leases, net of tax |
0 |
(1,915) |
||
Adjusted net income (Non-GAAP) |
80,412 |
80,681 |
||
Weighted average shares outstanding (diluted) |
14,973,951 |
15,132,257 |
||
Adjusted diluted earnings per share (Non-GAAP) |
$5.37 |
$5.33 |
||
(1) Federal Reserve peer ratio as of September 30, 2019, the most recent data available, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(3) Interest income includes the tax effects of taxable-equivalent basis.
(4) 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, 2018.
(5) 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
(6) 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. 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
(7) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.