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Press release content from Business Wire. The AP news staff was not involved in its creation.

Tompkins Financial Corporation Reports Increased Fourth Quarter and Full Year Earnings Per Share

January 31, 2020 GMT

ITHACA, N.Y.--(BUSINESS WIRE)--Jan 31, 2020--

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:

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 Average 1 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200131005060/en/

CONTACT: Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: Tompkins Financial Corporation

Copyright Business Wire 2020.

PUB: 01/31/2020 09:00 AM/DISC: 01/31/2020 09:01 AM

http://www.businesswire.com/news/home/20200131005060/en