EX-99.1 2 ex99-1.htm PRESS RELEASE
 

Tompkins Financial Corporation 8-K

 

EXHIBIT 99.1

 

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

 

For Immediate Release

Friday, October 19, 2018

 

Tompkins Financial Corporation Reports Record Year-to-Date and Third Quarter Earnings

 

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.36 for the third quarter of 2018, which represents an increase of 19.3% over the $1.14 reported in the third quarter of 2017. Net income for the third quarter of 2018 was $20.9 million, an increase of 20.2% over the $17.4 million reported for the same period in 2017.

Year-to-date diluted earnings per share of $4.12 for the first nine months of 2018 represents an increase of 26.0% over the same period in 2017. Year-to-date net income was $63.4 million, an increase of $13.4 million, or 26.7% over the same period in 2017.

President and CEO, Stephen S. Romaine said “We are pleased to once again report record earnings for both the year-to-date and quarterly results. Current period net income growth rates have benefited from lower tax rates, though our year-to-date income before tax also reflected strong growth, with an increase of 8.3% over the same period in 2017. The current interest rate environment is challenging as we, along with most in our industry, have seen narrowing of our net interest margin. Despite the pressure on margins, our ability to grow loans and deposits has allowed us to see continued growth in net interest income, with the third quarter of 2018 representing our fourteenth consecutive quarterly increase in net interest income.”

SELECTED HIGHLIGHTS FOR THE THIRD QUARTER AND YEAR-TO-DATE PERIODS:

Year-to-date diluted earnings per share reflect the best performance for the first nine months of any year in the Company’s history. Quarterly diluted earnings per share also reflect the best third quarter performance in the Company’s history.
Year-to-date profitability indicators remain strong with return on average assets of 1.27%; and a return on average shareholders’ equity of 14.47% for 2018, which are improved from 1.06% and 11.70%, respectively, for the same period in 2017.

 

 

 

Total loans of $4.8 billion at September 30, 2018, were up 7.0% over September 30, 2017, and up 2.9% over December 31, 2017.
Total deposits of $5.0 billion at September 30, 2018, were up $81.1 million, or 1.6% compared to September 30, 2017, and up $187.3 million, or 3.9% over December 31, 2017. Total non-interest bearing deposits were up $26.9 million over prior quarter.

NET INTEREST INCOME

Net interest income of $53.2 million for the third quarter of 2018 increased by $2.2 million, or 4.2% compared to the same period in 2017. For the year-to-date period, net interest income was $158.6 million, up $9.2 million, or 6.2% from the same nine-month period in 2017.

Growth in net interest income for the nine months ended September 30, 2018 was largely driven by $388.0 million of growth in average loans over the same period in 2017, an increase of 8.9%. Average deposits for the nine months ended September 30, 2018, increased $93.6 million, or 2.0% compared to the same period in 2017. Included in the increase in average deposits was a $125.0 million or 10.1% increase in average noninterest bearing deposits. The net interest margin for the third quarter of 2018 was 3.35%, compared to 3.40% reported for the same period in 2017, and 3.36% for the quarter ended June 30, 2018. The decline in margin from the same period last year is largely due to changes in the interest rate environment, which has resulted in funding costs rising at a faster rate than asset yields.

NONINTEREST INCOME

Noninterest income represented 25.9% of total revenues in the third quarter of 2018, compared to 25.2% in the same period in 2017, and 26.6% for the first nine months of 2018, compared to 25.8% in the same period in 2017. Noninterest income of $18.6 million for the third quarter of 2018 was up 8.1% compared to the same period last year. Fee income in the third quarter of 2018 associated with insurance, wealth management, deposit services, and card services were up a combined $671,000 or 4.2% over the same period in 2017.

NONINTEREST EXPENSE

Noninterest expense was $45.1 million for the third quarter of 2018, up $3.3 million, or 7.8%, over the third quarter of 2017. For the year-to-date period, noninterest expense was $133.8 million, up $9.0 million, or 7.2%, from the same period in 2017. The higher noninterest expense in 2018 included lease write-downs of $2.0 million (pre-tax) in the second quarter and $514,000 (pre-tax) in the third quarter related to leases on recently vacated space. Noninterest expense increases for both the third quarter and year-to-date periods of 2018 also included normal annual increases in salaries and wages.

INCOME TAX EXPENSE

The Company’s effective tax rate was 20.6% in the third quarter of 2018, compared to 32.8% for the same period in 2017. The decrease is a direct result of The Tax Cuts and Jobs Act of 2017, which reduced the Federal statutory tax rate from 35% in 2017, to 21% in 2018.

 

 

ASSET QUALITY

Asset quality trends remained strong in the third quarter of 2018. Nonperforming assets represented 0.39% of total assets at September 30, 2018, compared to 0.38% at December 31, 2017, and 0.37% at September 30, 2017. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.61%.

Provision for loan and lease losses was $272,000 for the third quarter of 2018, compared to $402,000 for the third quarter of 2017. Net charge-offs for the third quarter of 2018 were $138,000 compared to net recoveries of $479,000 in the third quarter of 2017.

The Company’s allowance for originated loan and lease losses totaled $41.3 million at September 30, 2018, and represented 0.91% of total originated loans and leases at September 30, 2018, unchanged from both December 31, 2017, and September 30, 2017. The total allowance represented 169.00% of total nonperforming loans and leases at September 30, 2018, compared to 172.84% at December 31, 2017, and 170.12% at September 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 7.49% at September 30, 2018, improved from the 7.36% reported for the most recent prior quarter ended June 30, 2018, and down from 7.58% at September 30, 2017.

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) (Unaudited)   As of   As of
ASSETS   09/30/2018   12/31/2017
             
Cash and noninterest bearing balances due from banks $ 111,245   $ 77,688  
Interest bearing balances due from banks   1,917     6,615  
  Cash and Cash Equivalents   113,162     84,303  
             
Available-for-sale securities, at fair value (amortized cost of $1,360,508 at September 30, 2018        
  and $1,408,996 at December 31, 2017)   1,310,672     1,391,863  
Held-to-maturity securities, at amortized cost (fair value of $138,232 at September 30, 2018 and        
  $140,315 at December 31, 2017)   141,236     139,216  
Equity securities, at fair value (amortized cost $1,000,000 at September 30, 2018 and $1,000,000        
  at December 31, 2017)   880     913  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   4,531,241     4,358,543  
Acquired loans (3)   271,468     310,577  
Less:  Allowance for loan and lease losses   41,358     39,771  
  Net Loans and Leases   4,761,351     4,629,349  
             
Federal Home Loan Bank and other stock   48,456     50,498  
Bank premises and equipment, net   95,638     86,995  
Corporate owned life insurance   81,625     80,106  
Goodwill   92,283     92,291  
Other intangible assets, net   7,989     9,263  
Accrued interest and other assets   93,668     83,494  
  Total Assets $ 6,746,960   $ 6,648,290  
             
LIABILITIES        
Deposits:        
  Interest bearing:        
  Checking, savings and money market   2,950,616     2,651,632  
  Time   640,102     748,250  
  Noninterest bearing   1,434,364     1,437,925  
  Total Deposits   5,025,082     4,837,807  
             
Federal funds purchased and securities sold under agreements to repurchase   52,875     75,177  
Other borrowings   988,515     1,071,742  
Trust preferred debentures   16,820     16,691  
Other liabilities   64,524     70,671  
  Total Liabilities $ 6,147,816   $ 6,072,088  
             
EQUITY        
Tompkins Financial Corporation shareholders’ equity:        
  Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,313,825 at        
    September 30, 2018; and 15,301,524 at December 31, 2017   1,531     1,530  
  Additional paid-in capital   367,669     364,031  
  Retained earnings   308,121     265,007  
  Accumulated other comprehensive loss   (74,937 )   (51,296 )
  Treasury stock, at cost - 120,278 shares at September 30, 2018, and 120,805 shares        
    at December 31, 2017   (4,748 )   (4,492 )
             
  Total Tompkins Financial Corporation Shareholders’ Equity   597,636     574,780  
Noncontrolling interests   1,508     1,422  
  Total Equity $ 599,144   $ 576,202  
  Total Liabilities and Equity $ 6,746,960   $ 6,648,290  

 

 

 

 

  Three Months Ended Nine Months Ended
(In thousands, except per share data) (Unaudited) 09/30/2018 09/30/2017 09/30/2018 09/30/2017
INTEREST AND DIVIDEND INCOME        
Loans $ 54,769   $ 48,949   $ 158,419   $ 141,257  
Due from banks 8   9   22   15  
Available-for-sale securities 7,448   7,415   22,821   22,384  
Held-to-maturity securities 860   865   2,572   2,613  
Federal Home Loan Bank and other stock 899   534   2,433   1,466  
Total Interest and Dividend Income 63,984   57,772   186,267   167,735  
INTEREST EXPENSE        
Time certificates of deposits of $250,000 or more 563   457   1,088   1,364  
Other deposits 3,830   2,679   9,699   7,508  
Federal funds purchased and securities sold under agreements to repurchase 35   44   115   195  
Trust preferred debentures 318   265   904   888  
Other borrowings 6,075   3,327   15,897   8,445  
Total Interest Expense 10,821   6,772   27,703   18,400  
Net Interest Income 53,163   51,000   158,564   149,335  
Less:  Provision for loan and lease losses 272   402   1,884   2,147  
Net Interest Income After Provision for Loan and Lease Losses 52,891   50,598   156,680   147,188  
NONINTEREST INCOME        
Insurance commissions and fees 7,903   7,682   22,684   21,892  
Investment services income 4,097   3,862   12,365   11,544  
Service charges on deposit accounts 2,088   2,125   6,300   6,337  
Card services income 2,442   2,190   7,209   6,875  
Other income 2,057   1,766   8,743   5,667  
Gain (loss) on securities transactions 16   (423 ) 290   (423 )
Total Noninterest Income 18,603   17,202   57,591   51,892  
NONINTEREST EXPENSE        
Salaries and wages 22,029   20,931   64,404   60,868  
Pension and other employee benefits 5,300   5,344   15,859   16,195  
Net occupancy expense of premises 3,057   3,064   9,873   9,965  
Furniture and fixture expense 1,814   1,585   5,461   4,819  
FDIC insurance 712   620   2,083   1,775  
Amortization of intangible assets 440   481   1,334   1,459  
Other operating expense 11,781   9,858   34,825   29,738  
Total Noninterest Expenses 45,133   41,883   133,839   124,819  
Income Before Income Tax Expense 26,361   25,917   80,432   74,261  
Income Tax Expense 5,427   8,491   16,939   24,127  
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 20,934   17,426   63,493   50,134  
Less:  Net Income Attributable to Noncontrolling Interests 32   32   96   97  
Net Income Attributable to Tompkins Financial Corporation $ 20,902   $ 17,394   $ 63,397   $ 50,037  
Basic Earnings Per Share $ 1.37   $ 1.14   $ 4.15   $ 3.30  
Diluted Earnings Per Share $ 1.36   $ 1.14   $ 4.12   $ 3.27  

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                             
        Quarter Ended   YTD Period Ended   YTD Period Ended
        September 30, 2018   September 30, 2018   September 30, 2017
        Average       Average       Average    
        Balance   Average   Balance   Average   Balance   Average
(Dollar amounts in thousands)   (QTD) Interest Yield/ Rate   (YTD) Interest Yield/ Rate   (YTD) Interest Yield/ Rate
ASSETS                        
Interest-earning assets                        
  Interest-bearing balances due from banks $ 2,513   $ 8 1.26 % $ 2,121 $ 22 1.39 % $ 3,547 $ 15 0.57 %
  Securities (4)                        
    U.S. Government securities   1,418,742   7,766 2.17 %   1,438,322 23,763 2.21 %   1,476,459 23,352 2.11 %
    State and municipal (5)   95,758   627 2.60 %   97,556 1,898 2.60 %   101,080 2,552 3.38 %
    Other securities (5)   3,435   39 4.50 %   3,516 113 4.30 %   3,602 96 3.56 %
    Total securities   1,517,935   8,432 2.20 %   1,539,394 25,774 2.24 %   1,581,141 26,000 2.20 %
  FHLBNY and FRB stock   54,871   899 6.50 %   52,802 2,433 6.16 %   41,639 1,466 4.71 %
                             
  Total loans and leases, net of unearned income (5)(6)   4,781,462   55,095 4.57 %   4,740,257 159,398 4.50 %   4,352,292 143,497 4.41 %
  Total interest-earning assets   6,356,781   64,434 4.02 %   6,334,574 187,627 3.96 %   5,978,619 170,978 3.82 %
                             
Other assets   359,671         351,949       355,983    
                             
  Total assets $ 6,716,452       $ 6,686,523     $ 6,334,602    
                             
LIABILITIES & EQUITY                        
Deposits                        
  Interest-bearing deposits                        
    Interest bearing checking, savings & money market $ 2,789,432   2,532 0.36 % $ 2,806,119 6,118 0.29 % $ 2,664,405 3,620 0.18 %
    Time deposits   637,426   1,861 1.16 %   671,888 4,669 0.93 %   845,058 5,252 0.83 %
    Total interest-bearing deposits   3,426,858   4,393 0.51 %   3,478,007 10,787 0.41 %   3,509,463 8,872 0.34 %
                             
Federal funds purchased & securities sold under                        
    agreements to repurchase   59,626   35 0.23 %   62,956 115 0.24 %   65,798 195 0.40 %
Other borrowings   1,141,257   6,075 2.11 %   1,113,120 15,897 1.91 %   861,289 8,445 1.31 %
Trust preferred debentures   16,792   318 7.51 %   16,749 904 7.22 %   18,903 888 6.28 %
  Total interest-bearing liabilities   4,644,533   10,821 0.92 %   4,670,832 27,703 0.79 %   4,455,453 18,400 0.55 %
                             
Non-interest bearing deposits   1,409,401         1,366,219       1,241,173    
Accrued expenses and other liabilities   65,307         63,682       66,094    
  Total liabilities   6,119,241         6,100,733       5,762,720    
                             
Tompkins Financial Corporation Shareholders’ equity   595,721         584,331       570,403    
Noncontrolling interest   1,490         1,459       1,479    
  Total equity   597,211         585,790       571,882    
                             
  Total liabilities and equity $ 6,716,452       $ 6,686,523     $ 6,334,602    
Interest rate spread       3.10 %       3.17 %       3.27 %
  Net interest income/margin on earning assets     53,613 3.35 %     159,924 3.38 %     152,578 3.41 %
                             
Tax equivalent adjustments     (450)       (1,360)       (3,243)  
                             
  Net interest income per consolidated financial statements     $ 53,163       $ 158,564       $ 149,335  
                                                     

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)                        
  Quarter-Ended Year-Ended
Period End Balance Sheet   Sep-18   Jun-18   Mar-18   Dec-17   Sep-17   Dec-17
Securities $ 1,452,788   $ 1,483,991   $ 1,510,795   $ 1,531,991   $ 1,546,199   $ 1,531,991  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   4,531,241     4,507,006     4,408,081     4,358,543     4,167,254     4,358,543  
Acquired loans and leases (3)   271,468     284,187     296,765     310,577     323,259     310,577  
Allowance for  loan and lease losses   41,358     41,225     40,211     39,771     38,038     39,771  
Total assets   6,746,960     6,745,800     6,648,128     6,648,290     6,524,060     6,648,290  
Total deposits   5,025,082     4,792,229     4,929,903     4,837,807     4,943,944     4,837,807  
Federal funds purchased and securities sold under agreements to repurchase   52,875     52,042     69,131     75,177     73,874     75,177  
Other borrowings   988,515     1,229,956     995,074     1,071,742     834,574     1,071,742  
Trust preferred debentures   16,820     16,777     16,734     16,691     16,648     16,691  
Total common equity   597,636     589,173     577,967     574,780     588,349     574,780  
Total equity   599,144     590,649     579,411     576,202     589,868     576,202  

 

 

Average Balance Sheet                        
Average earning assets $ 6,356,781   $ 6,348,562   $ 6,297,727   $ 6,159,396   $ 6,072,269   $ 6,024,186  
Average assets   6,716,452     6,689,649     6,652,763     6,552,414     6,430,497     6,389,504  
Average interest-bearing liabilities   4,644,533     4,709,122     4,658,998     4,500,649     4,463,606     4,466,846  
Average equity   597,211     584,951     574,963     593,956     586,671     577,446  

 

Share data                        
Weighted average shares outstanding (basic) 15,047,405   15,038,061   15,013,478   14,988,542   14,966,231   14,950,432  
Weighted average shares outstanding (diluted) 15,144,491   15,135,970   15,112,518   15,103,906   15,078,555   15,073,255  
Period-end shares outstanding 15,277,915   15,278,430   15,285,335   15,265,614   15,202,444   15,265,614  
Common equity book value per share $ 39.12   $ 38.56   $ 37.81   $ 37.65   $ 38.70   $ 37.65  
Tangible book value per share (Non-GAAP) $ 32.60   $ 32.02   $ 31.24   $ 31.04   $ 32.03   $ 31.04  

 

Income Statement                        
Net interest income $ 53,163   $ 52,714   $ 52,687   $ 51,969   $ 51,000   $ 201,304  
Provision for loan/lease losses   272     1,045     567     2,014     402     4,161  
Noninterest income   18,603     21,158     17,830     17,312     17,202     69,204  
Noninterest expense   45,133     44,985     43,721     46,286     41,883     171,105  
Income tax expense   5,427     5,751     5,761     18,493     8,491     42,620  
Net income attributable to Tompkins Financial Corporation   20,902     22,059     20,436     2,457     17,394     52,494  
Noncontrolling interests   32     32     32     31     32     128  
Basic earnings per share (8) $ 1.37   $ 1.44   $ 1.34   $ 0.16   $ 1.14   $ 3.46  
Diluted earnings per share (8) $ 1.36   $ 1.43   $ 1.33   $ 0.16   $ 1.14   $ 3.43  

 

 

 

 

 

Nonperforming Assets                        
Originated nonaccrual loans and leases $ 17,518   $ 19,082   $ 18,429   $ 16,253   $ 15,667   $ 16,253  
Acquired nonaccrual loans and leases   2,659     2,673     3,352     3,264     3,152     3,264  
Originated loans and leases 90 days past due and accruing   0     0     0     44     0     44  
Troubled debt restructurings not included above   4,295     4,324     3,455     3,449     3,541     3,449  
Total nonperforming loans and leases   24,472     26,079     25,236     23,010     22,360     23,010  
OREO   1,870     2,233     2,047     2,047     2,030     2,047  
Total nonperforming assets $ 26,342   $ 28,312   $ 27,283   $ 25,057   $ 24,390   $ 25,057  

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

    Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio   Sep-18   Jun-18   Mar-18   Dec-17   Sep-17   Dec-17
Loans and leases 30-89 days past due and accruing (2) $ 6,454   $ 5,875   $ 6,513   $ 6,791   $ 5,567   $ 6,791  
Loans and leases 90 days past due and accruing (2)   0     0     0     44     0     44  
Total originated loans and leases past due and accruing (2)   6,454     5,875     6,513     6,835     5,567     6,835  

 

Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7) $ 1,109   $ 1,108   $ 823   $ 1,256   $ 2,857   $ 1,256  
Loans 90 days or more past due   1,420     1,110     1,077     1,146     1,306     1,146  
Total acquired loans and leases past due and accruing   2,529     2,218     1,900     2,402     4,163     2,402  
Total loans and leases past due and accruing $ 8,983   $ 8,093   $ 8,413   $ 9,237   $ 9,730   $ 9,237  

 

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 41,111   $ 40,107   $ 39,686   $ 37,903   $ 36,960   $ 35,598  
Provision for loan and lease losses   208     1,035     608     1,849     931     4,428  
Net loan and lease (recoveries) charge-offs   30     31     187     66     (12 )   140  
Allowance for loan and lease losses (originated                        
loan portfolio) - balance at end of period $ 41,289   $ 41,111   $ 40,107   $ 39,686   $ 37,903   $ 39,686  

 

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 114   $ 104   $ 85   $ 135   $ 197   $ 157  
Provision (credit) for loan and lease losses   64     10     (41 )   165     (529 )   (67 )
Net loan and lease (recoveries) charge-offs   108     0     (60 )   215     (467 )   5  
Allowance for loan and lease losses (acquired                        
loan portfolio) - balance at end of period   69     114     104     85     135     85  
                         
Total allowance for loan and lease losses $ 41,358   $ 41,225   $ 40,211   $ 39,771   $ 38,038   $ 39,771  

 

 

 

 

Loan Classification - Originated Portfolio                        
Special Mention $ 34,245   $ 44,068   $ 34,546   $ 46,074   $ 50,423   $ 46,074  
Substandard   49,597     41,572     35,746     20,584     20,532     20,584  
Loan Classification - Acquired Portfolio                        
Special Mention   465     469     476     525     539     525  
Substandard   3,041     3,180     3,468     5,355     8,193     5,355  
Loan Classifications - Total Portfolio                        
Special Mention   34,710     44,537     35,022     46,599     50,962     46,599  
Substandard   52,638     44,752     39,214     25,939     28,725     25,939  

 

Ratio Analysis

Credit Quality                        
Nonperforming loans and leases/total loans and leases (7)   0.51 %   0.54 %   0.54 %   0.49 %   0.50 %   0.49 %
Nonperforming assets/total assets   0.39 %   0.42 %   0.41 %   0.38 %   0.37 %   0.38 %
Allowance for originated loan and lease losses/total originated loans and leases   0.91 %   0.91 %   0.91 %   0.91 %   0.91 %   0.91 %
Allowance/nonperforming loans and leases   169.00 %   158.11 %   159.34 %   172.84 %   170.12 %   172.84 %
Net loan and lease losses (recoveries) annualized/total average loans and leases   0.01 %   0.00 %   0.01 %   0.02 %   (0.04 )%   0.00 %

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

    Year-Ended
Capital Adequacy (period-end)   Sep-18   Jun-18   Mar-18   Dec-17   Sep-17   Dec-17
Tangible common equity/tangible assets   7.49 %   7.36 %   7.29 %   7.24 %   7.58 %   7.24 %

 

Profitability                        
Return on average assets *   1.23 %   1.32 %   1.25 %   0.15 %   1.07 %   0.82 %
Return on average equity *   13.89 %   15.13 %   14.41 %   1.64 %   11.77 %   9.09 %
Net interest margin (TE) *   3.35 %   3.36 %   3.42 %   3.42 %   3.40 %   3.41 %
* Quarterly ratios have been annualized                        

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP 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.

 

 

 

Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
    Quarter-Ended Year-Ended
    Sep-18   Jun-18   Mar-18   Dec-17   Sep-17   Dec-17
Net income available to common shareholders $ 20,902   $ 22,059   $ 20,436   $ 2,457   $ 17,394   $ 52,494  
Income attributable to unvested stock-based compensation awards   318     359     351     26     266     818  
Net earnings allocated to common shareholders   20,584     21,700     20,085     2,431     17,128     51,676  
Remeasurement of net deferred taxes   0     0     0     14,944     0     14,994  
Gain on sale of real estate, net of tax       2,227     0     0     0     0  
Write-down of impaired leases, net of tax   (388 )   (1,527 )   0     0     0     0  
Net income (Non-GAAP)   20,972     21,000     20,085     17,375     17,128     66,620  
Weighted average shares outstanding (diluted) 15,144,491   15,135,970   15,112,518   15,103,906   15,078,555   15,073,255  
Adjusted diluted earnings per share (Non-GAAP) $ 1.38   $ 1.39   $ 1.33   $ 1.15   $ 1.14   $ 4.42  

 

Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity $ 597,636   $ 589,173   $ 577,967   $ 574,780   $ 588,349   $ 574,780  
Less:  Goodwill and intangibles (9)   99,543     99,983     100,436     100,887     101,360     100,887  
Tangible common equity   498,093     489,190     477,531     473,893     486,989     473,893  
Ending shares outstanding 15,277,915   15,278,430   15,285,335   15,265,614   15,202,444   15,265,614  
Tangible book value per share (Non-GAAP) $ 32.60   $ 32.02   $ 31.24   $ 31.04   $ 32.03   $ 31.04  

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

Non-GAAP Disclosure - Year to date adjusted diluted earnings per share

 

    Sep-18   Sep-17
Net income available to common shareholders $ 63,397 $ 50,037
Income attributable to unvested stock-based compensation awards   1,024   792
Net earnings allocated to common shareholders   62,373   49,245
Gain on sale of real estate, net of tax   2,227   0
Write-down of impaired leases, net of tax   (1,915)   0
Net income (Non-GAAP)   62,061   49,245
Weighted average shares outstanding (diluted)   15,131,018   15,062,870
Adjusted diluted earnings per share (Non-GAAP) $ 4.10 $ 3.27
             

 

(1)Federal Reserve peer ratio as of June 30, 2018, 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.
(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, 2017.
(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)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
(9)“Goodwill and intangibles” equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.