Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation reported net income of $19.4 million for the second quarter of 2019, compared to the $22.1 million reported for the same period in 2018. Year-to-date net income was $40.4 million, a decrease of $2.1 million, or 4.9% from the same period in 2018.
Diluted earnings per share were $1.27 for the second quarter of 2019, compared to $1.43 reported in the second quarter of 2018. For the year-to-date period ended June 30, 2019, diluted earnings per share were $2.63, down 4.7% over the same period in 2018.
President and CEO, Stephen S. Romaine said “Though overall performance remains very good, we did see a decline in earnings for the quarter and year-to-date periods. The decline from recent prior periods was largely driven by the challenging interest rate environment that has resulted in funding costs increasing at a faster pace than asset yields. We are fortunate that our business model includes meaningful fee income contributions from business lines that are less impacted by the interest rate environment. Additionally, we have a number of continuous improvement initiatives underway that we expect will have a positive impact on performance later in 2019 and in future years.”
SELECTED HIGHLIGHTS FOR THE SECOND QUARTER AND YEAR-TO-DATE PERIODS:
- Total loans of $4.9 billion were up 1.4% over the same period in 2018
- Total deposits of $5.0 billion reflect an increase of 4.1% over the same period last year
- Total nonperforming loans were down $2.3 million or 8.8% compared to the same period last year, and down $2.8 million or 10.5% from December 31, 2018
- Tangible book value per share is up $4.75 or 14.8% from the second quarter of 2018 and reflects the sixth consecutive quarterly increase
NET INTEREST INCOME
Net interest income was $52.3 million for the second quarter of 2019, compared to $52.7 million reported for the second quarter of 2018. For the year-to-date period, net interest income was $104.2 million, a decrease of $1.2 million or 1.1% from the same six-month period in 2018.
Net interest income benefited from growth in average loans and higher yielding earning assets. Average loans were up $78.4 million, or 1.7% in the first six months of 2019, compared to the same six month period in 2018, while asset yields were up 26 basis points compared to the first six months of 2018. Average total deposits were up $101.3 million, or 2.1% in the first six months of 2019, versus the same period in 2018. Average noninterest deposits for the first six months of 2019 were in line with the same period in 2018. The average rate paid on interest bearing deposit products in the first six months of 2019 increased 42 basis points over the same period in 2018. The net interest margin for the second quarter of 2019 was 3.34%, compared to 3.36% reported for the same period in 2018, and unchanged compared to the prior quarter end. The decline in margin is largely due to the recent increases in market interest rates that have resulted in increased funding costs.
During the quarter, the Company sold $152.1 million in lower yielding securities and used the proceeds to pay down short term borrowings. Because the transaction was executed in June, it had little impact on net interest income during the quarter, but is expected to have a positive impact on net interest income during the remainder of 2019.
NONINTEREST INCOME
Noninterest income represented 26.7% of total revenues in the first six months of 2019, compared to 27.0% in the same period in 2018. The second quarter of 2018 included a gain on sale of two properties totaling $2.9 million. The sale of these properties was related to the completion of the new Company headquarters building in the second quarter of 2018. Fee income associated with insurance, wealth management, deposit services, and card services for the second quarter of 2019 were up a combined $323,000, or 2.0% over the same period in 2018.
NONINTEREST EXPENSE
Noninterest expense was $46.1 million for the second quarter of 2019, up $1.1 million, or 2.4%, over the second quarter of 2018. For the year-to-date period, noninterest expense was $90.3 million, up $1.6 million, or 1.8%, from the same period in 2018. The increase in noninterest expense for both the second quarter and year-to-date periods included normal annual increases in salaries and wages.
INCOME TAX EXPENSE
The Company's effective tax rate was 19.6% in the second quarter of 2019, compared to 20.7% for the same period in 2018.
ASSET QUALITY
Asset quality trends remained strong in the second quarter of 2019. Nonperforming assets represented 0.39% of total assets at June 30, 2019, compared to 0.42% at December 31, 2018, and at June 30, 2018. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.60%.
Provision for loan and lease losses was $601,000 for the second quarter of 2019, compared to $1.0 million for the second quarter ended June 30, 2018. Net charge-offs for the second quarter of 2019 were $139,000 compared to $31,000 reported in the second quarter of 2018.
The Company’s allowance for originated loan and lease losses totaled $40.6 million at June 30, 2019, and represented 0.88% of total originated loans and leases at June 30, 2019, compared to 0.91% at June 30, 2018, and 0.89% for the most recent prior quarter. The total allowance represented 171.42% of total nonperforming loans and leases at June 30, 2019, compared to 163.25% at December 31, 2018, and 158.08% at June 30, 2018.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 8.50% at June 30, 2019, improved from the 8.24% reported for the most recent prior quarter ended March 31, 2019, and the 7.36% reported for June 30, 2018. During the quarter, the Company repurchased 155,093 shares at a total cost of $12.3 million.
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 | 06/30/2019 | 12/31/2018 | ||||
Cash and noninterest bearing balances due from banks | $ | 79,032 | $ | 78,524 | ||
Interest bearing balances due from banks | 1,981 | 1,865 | ||||
Cash and Cash Equivalents | 81,013 | 80,389 | ||||
Available-for-sale securities, at fair value (amortized cost of $1,190,869 at June 30, 2019 and $1,363,902 at December 31, 2018) | 1,189,246 | 1,332,658 | ||||
Held-to-maturity securities, at amortized cost (fair value of $143,548 June 30, 2019 and $139,377 at December 31, 2018) | 140,561 | 140,579 | ||||
Equity securities, at fair value (amortized cost $1,000 at June 30, 2019 and $1,000 at December 31, 2018) | 912 | 887 | ||||
Originated loans and leases, net of unearned income and deferred costs and fees | 4,608,483 | 4,568,741 | ||||
Acquired loans | 247,319 | 265,198 | ||||
Less: Allowance for loan and lease losses | 40,790 | 43,410 | ||||
Net Loans and Leases | 4,815,012 | 4,790,529 | ||||
Federal Home Loan Bank and other stock | 40,770 | 52,262 | ||||
Bank premises and equipment, net | 96,053 | 97,202 | ||||
Corporate owned life insurance | 82,092 | 81,928 | ||||
Goodwill | 92,447 | 92,283 | ||||
Other intangible assets, net | 7,092 | 7,628 | ||||
Accrued interest and other assets | 109,192 | 82,091 | ||||
Total Assets | $ | 6,654,390 | $ | 6,758,436 | ||
LIABILITIES | ||||||
Deposits: | ||||||
Interest bearing: | ||||||
Checking, savings and money market | 2,908,888 | 2,853,190 | ||||
Time | 684,962 | 637,295 | ||||
Noninterest bearing | 1,395,047 | 1,398,474 | ||||
Total Deposits | 4,988,897 | 4,888,959 | ||||
Federal funds purchased and securities sold under agreements to repurchase | 63,978 | 81,842 | ||||
Other borrowings | 824,562 | 1,076,075 | ||||
Trust preferred debentures | 16,949 | 16,863 | ||||
Other liabilities | 102,327 | 73,826 | ||||
Total Liabilities | $ | 5,996,713 | $ | 6,137,565 | ||
EQUITY | ||||||
Tompkins Financial Corporation shareholders' equity: | ||||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,196,629 at June 30, 2019; and 15,348,287 at December 31, 2018 | 1,520 | 1,535 | ||||
Additional paid-in capital | 355,284 | 366,595 | ||||
Retained earnings | 344,513 | 319,396 | ||||
Accumulated other comprehensive loss | (40,174 | ) | (63,165 | ) | ||
Treasury stock, at cost – 119,784 shares at June 30, 2019, and 122,227 shares at December 31, 2018 | (4,942 | ) | (4,902 | ) | ||
Total Tompkins Financial Corporation Shareholders’ Equity | 656,201 | 619,459 | ||||
Noncontrolling interests | 1,476 | 1,412 | ||||
Total Equity | $ | 657,677 | $ | 620,871 | ||
Total Liabilities and Equity | $ | 6,654,390 | $ | 6,758,436 | ||
TOMPKINS FINANCIAL CORPORATION | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(In thousands, except per share data) (Unaudited) | Three Months Ended | Six Months Ended | ||||||||||
06/30/2019 | 06/30/2018 | 06/30/2019 | 06/30/2018 | |||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||
Loans | $ | 56,740 | $ | 52,757 | $ | 112,064 | $ | 103,651 | ||||
Due from banks | 10 | 7 | 20 | 13 | ||||||||
Available-for-sale securities | 7,686 | 7,729 | 15,544 | 15,373 | ||||||||
Held-to-maturity securities | 863 | 854 | 1,721 | 1,712 | ||||||||
Federal Home Loan Bank and other stock | 794 | 796 | 1,672 | 1,534 | ||||||||
Total Interest and Dividend Income | 66,093 | 62,143 | 131,021 | 122,283 | ||||||||
INTEREST EXPENSE | ||||||||||||
Time certificates of deposits of $250,000 or more | 774 | 540 | 1,360 | 525 | ||||||||
Other deposits | 6,816 | 3,087 | 12,827 | 5,870 | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 33 | 34 | 77 | 80 | ||||||||
Trust preferred debentures | 327 | 306 | 656 | 586 | ||||||||
Other borrowings | 5,825 | 5,462 | 11,869 | 9,821 | ||||||||
Total Interest Expense | 13,775 | 9,429 | 26,789 | 16,882 | ||||||||
Net Interest Income | 52,318 | 52,714 | 104,232 | 105,401 | ||||||||
Less: Provision for loan and lease losses | 601 | 1,045 | 1,046 | 1,612 | ||||||||
Net Interest Income After Provision for Loan and Lease Losses | 51,717 | 51,669 | 103,186 | 103,789 | ||||||||
NONINTEREST INCOME | ||||||||||||
Insurance commissions and fees | 7,752 | 7,387 | 15,797 | 14,781 | ||||||||
Investment services income | 3,907 | 4,022 | 7,991 | 8,268 | ||||||||
Service charges on deposit accounts | 2,021 | 2,080 | 4,019 | 4,212 | ||||||||
Card services income | 2,750 | 2,621 | 5,540 | 4,767 | ||||||||
Other income | 1,806 | 4,898 | 4,284 | 6,686 | ||||||||
Net gain on securities transactions | 284 | 150 | 296 | 274 | ||||||||
Total Noninterest Income | 18,520 | 21,158 | 37,927 | 38,988 | ||||||||
NONINTEREST EXPENSE | ||||||||||||
Salaries and wages | 22,088 | 21,377 | 43,189 | 42,375 | ||||||||
Other employee benefits | 5,662 | 5,183 | 11,273 | 10,559 | ||||||||
Net occupancy expense of premises | 3,258 | 3,170 | 6,859 | 6,816 | ||||||||
Furniture and fixture expense | 1,996 | 1,673 | 3,975 | 3,648 | ||||||||
FDIC insurance | 522 | 704 | 1,104 | 1,371 | ||||||||
Amortization of intangible assets | 418 | 443 | 830 | 894 | ||||||||
Other operating expense | 12,126 | 12,435 | 23,049 | 23,043 | ||||||||
Total Noninterest Expenses | 46,070 | 44,985 | 90,279 | 88,706 | ||||||||
Income Before Income Tax Expense | 24,167 | 27,842 | 50,834 | 54,071 | ||||||||
Income Tax Expense | 4,743 | 5,751 | 10,338 | 11,512 | ||||||||
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation | 19,424 | 22,091 | 40,496 | 42,559 | ||||||||
Less: Net Income Attributable to Noncontrolling Interests | 32 | 32 | 64 | 64 | ||||||||
Net Income Attributable to Tompkins Financial Corporation | $ | 19,392 | $ | 22,059 | $ | 40,432 | $ | 42,495 | ||||
Basic Earnings Per Share | $ | 1.27 | $ | 1.44 | $ | 2.64 | $ | 2.78 | ||||
Diluted Earnings Per Share | $ | 1.27 | $ | 1.43 | $ | 2.63 | $ | 2.76 | ||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||||
Quarter Ended | YTD Period Ended | YTD Period Ended | ||||||||||||||||
June 30, 2019 | June 30, 2019 | June 30, 2018 | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Balance | Average | Balance | Average | Balance | Average | |||||||||||||
(Dollar amounts in thousands) | (QTD) | Interest |
Yield/
| (YTD) | Interest |
Yield/
| (YTD) | Interest |
Yield/
| |||||||||
ASSETS | ||||||||||||||||||
Interest-earning assets | ||||||||||||||||||
Interest-bearing balances due from banks | $ | 2,131 | $ | 10 | 1.88% | $ | 2,232 | $ | 20 | 1.81% | $ | 1,922 | $ | 14 | 1.47% | |||
Securities (4) | ||||||||||||||||||
U.S. Government securities | 1,389,887 | 7,996 | 2.31% | 1,399,542 | 16,168 | 2.33% | 1,448,274 | 15,997 | 2.23% | |||||||||
State and municipal (5) | 93,142 | 638 | 2.75% | 93,872 | 1,264 | 2.72% | 98,470 | 1,271 | 2.60% | |||||||||
Other securities (5) | 3,416 | 40 | 4.70% | 3,416 | 81 | 4.78% | 3,558 | 74 | 4.19% | |||||||||
Total securities | 1,486,445 | 8,674 | 2.34% | 1,496,830 | 17,513 | 2.36% | 1,550,302 | 17,342 | 2.26% | |||||||||
FHLBNY and FRB stock | 46,650 | 794 | 6.83% | 47,349 | 1,672 | 7.12% | 51,750 | 1,534 | 5.98% | |||||||||
Total loans and leases, net of unearned income (5)(6) | 4,802,757 | 57,022 | 4.76% | 4,797,709 | 112,636 | 4.73% | 4,719,312 | 104,304 | 4.46% | |||||||||
Total interest-earning assets | 6,337,983 | 66,500 | 4.21% | 6,344,120 | 131,841 | 4.19% | 6,323,286 | 123,194 | 3.93% | |||||||||
Other assets | 404,426 | 398,762 | 348,024 | |||||||||||||||
Total assets | $ | 6,742,409 | $ | 6,742,882 | $ | 6,671,310 | ||||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||
Deposits | ||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||
Interest bearing checking, savings & money market | $ | 2,947,077 | 4,970 | 0.68% | $ | 2,943,765 | 9,441 | 0.65% | $ | 2,814,601 | 3,587 | 0.26% | ||||||
Time deposits | 671,197 | 2,620 | 1.57% | 658,242 | 4,746 | 1.45% | 689,404 | 2,808 | 0.82% | |||||||||
Total interest-bearing deposits | 3,618,274 | 7,590 | 0.84% | 3,602,007 | 14,187 | 0.79% | 3,504,005 | 6,395 | 0.37% | |||||||||
Federal funds purchased & securities sold under | ||||||||||||||||||
agreements to repurchase | 54,340 | 33 | 0.24% | 63,451 | 77 | 0.24% | 64,649 | 80 | 0.25% | |||||||||
Other borrowings | 948,714 | 5,825 | 2.46% | 971,119 | 11,869 | 2.46% | 1,098,818 | 9,821 | 1.80% | |||||||||
Trust preferred debentures | 16,921 | 327 | 7.75% | 16,900 | 656 | 7.83% | 16,728 | 586 | 7.06% | |||||||||
Total interest-bearing liabilities | 4,638,249 | 13,775 | 1.19% | 4,653,477 | 26,789 | 1.16% | 4,684,200 | 16,882 | 0.73% | |||||||||
Non-interest bearing deposits | 1,356,354 | 1,347,538 | 1,344,270 | |||||||||||||||
Accrued expenses and other liabilities | 97,727 | 101,409 | 62,856 | |||||||||||||||
Total liabilities | 6,092,330 | 6,102,424 | 6,091,326 | |||||||||||||||
Tompkins Financial Corporation Shareholders’ equity | 648,618 | 639,015 | 578,541 | |||||||||||||||
Noncontrolling interest | 1,461 | 1,443 | 1,443 | |||||||||||||||
Total equity | 650,079 | 640,458 | 579,984 | |||||||||||||||
Total liabilities and equity | $ | 6,742,409 | $ | 6,742,882 | $ | 6,671,310 | ||||||||||||
Interest rate spread | 3.02% | 3.03% | 3.20% | |||||||||||||||
Net interest income/margin on earning assets | 52,725 | 3.34% | 105,052 | 3.34% | 106,312 | 3.39% | ||||||||||||
Tax equivalent adjustments | (407) | (820) | (911) | |||||||||||||||
Net interest income per consolidated financial statements | $ | 52,318 | $ | 104,232 | $ | 105,401 | ||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) | ||||||||||||
Quarter-Ended | Year-Ended | |||||||||||
Period End Balance Sheet | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Dec-18 | ||||||
Securities | $ | 1,330,719 | $ | 1,484,151 | $ | 1,474,124 | $ | 1,452,788 | $ | 1,483,991 | $ | 1,474,124 |
Originated loans and leases, net of unearned income and deferred costs and fees (2) | 4,608,483 | 4,532,803 | 4,568,741 | 4,531,241 | 4,507,006 | 4,568,741 | ||||||
Acquired loans and leases (3) | 247,319 | 256,897 | 265,198 | 271,468 | 284,187 | 265,198 | ||||||
Allowance for loan and lease losses | 40,790 | 40,328 | 43,410 | 41,358 | 41,225 | 43,410 | ||||||
Total assets | 6,654,390 | 6,738,719 | 6,758,436 | 6,746,960 | 6,745,800 | 6,758,436 | ||||||
Total deposits | 4,988,897 | 4,989,925 | 4,888,959 | 5,025,082 | 4,792,229 | 4,888,959 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 63,978 | 66,918 | 81,842 | 52,875 | 52,042 | 81,842 | ||||||
Other borrowings | 824,562 | 923,427 | 1,076,075 | 988,515 | 1,229,956 | 1,076,075 | ||||||
Trust preferred debentures | 16,949 | 16,906 | 16,863 | 16,820 | 16,777 | 16,863 | ||||||
Total common equity | 656,201 | 645,823 | 619,459 | 597,636 | 589,173 | 619,459 | ||||||
Total equity | 657,677 | 647,267 | 620,871 | 599,144 | 590,649 | 620,871 | ||||||
Average Balance Sheet | ||||||||||||
Average earning assets | $ | 6,337,983 | $ | 6,350,325 | $ | 6,364,113 | $ | 6,356,781 | $ | 6,348,562 | $ | 6,342,019 |
Average assets | 6,742,409 | 6,743,360 | 6,710,944 | 6,716,452 | 6,689,649 | 6,692,678 | ||||||
Average interest-bearing liabilities | 4,638,249 | 4,668,875 | 4,606,536 | 4,644,533 | 4,709,122 | 4,654,625 | ||||||
Average equity | 650,079 | 630,731 | 606,238 | 597,211 | 584,951 | 590,944 | ||||||
Share data | ||||||||||||
Weighted average shares outstanding (basic) | 15,019,710 | 15,060,175 | 15,057,673 | 15,047,405 | 15,038,061 | 15,039,229 | ||||||
Weighted average shares outstanding (diluted) | 15,085,945 | 15,136,523 | 15,135,750 | 15,144,491 | 15,135,970 | 15,132,257 | ||||||
Period-end shares outstanding | 15,160,719 | 15,314,078 | 15,312,377 | 15,277,915 | 15,278,430 | 15,312,377 | ||||||
Common equity book value per share | $ | 43.28 | $ | 42.17 | $ | 40.45 | $ | 39.12 | $ | 38.56 | $ | 40.45 |
Tangible book value per share (Non-GAAP) | $ | 36.77 | $ | 35.73 | $ | 33.98 | $ | 32.60 | $ | 32.02 | $ | 33.98 |
Income Statement | ||||||||||||
Net interest income | $ | 52,318 | $ | 51,914 | $ | 53,236 | $ | 53,163 | $ | 52,714 | $ | 211,800 |
Provision for loan/lease losses | 601 | 445 | 2,058 | 272 | 1,045 | 3,942 | ||||||
Noninterest income | 18,520 | 19,407 | 19,858 | 18,603 | 21,158 | 77,449 | ||||||
Noninterest expense | 46,070 | 44,209 | 47,228 | 45,133 | 44,985 | 181,067 | ||||||
Income tax expense | 4,743 | 5,595 | 4,866 | 5,427 | 5,751 | 21,805 | ||||||
Net income attributable to Tompkins Financial Corporation | 19,392 | 21,040 | 18,911 | 20,902 | 22,059 | 82,308 | ||||||
Noncontrolling interests | 32 | 32 | 31 | 32 | 32 | 127 | ||||||
Basic earnings per share (8) | $ | 1.27 | $ | 1.37 | $ | 1.24 | $ | 1.37 | $ | 1.44 | $ | 5.39 |
Diluted earnings per share (8) | $ | 1.27 | $ | 1.37 | $ | 1.23 | $ | 1.36 | $ | 1.43 | $ | 5.35 |
Nonperforming Assets | ||||||||||||
Originated nonaccrual loans and leases | $ | 16,543 | $ | 15,165 | $ | 19,340 | $ | 17,518 | $ | 19,082 | $ | 19,340 |
Acquired nonaccrual loans and leases | 2,363 | 2,579 | 2,856 | 2,659 | 2,673 | 2,856 | ||||||
Originated loans and leases 90 days past due and accruing | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Troubled debt restructurings not included above | 4,889 | 5,234 | 4,395 | 4,295 | 4,324 | 4,395 | ||||||
Total nonperforming loans and leases | 23,795 | 22,978 | 26,591 | 24,472 | 26,079 | 26,591 | ||||||
OREO | 2,229 | 1,595 | 1,595 | 1,870 | 2,233 | 1,595 | ||||||
Total nonperforming assets | $ | 26,024 | $ | 24,573 | $ | 28,186 | $ | 26,342 | $ | 28,312 | $ | 28,186 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-Ended | Year-Ended | |||||||||||
Delinquency - Originated loan and lease portfolio | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Dec-18 | ||||||
Loans and leases 30-89 days past due and | ||||||||||||
accruing (2) | $ | 3,883 | $ | 4,193 | $ | 7,838 | $ | 6,454 | $ | 5,875 | $ | 7,838 |
Loans and leases 90 days past due and accruing (2) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total originated loans and leases past due and accruing (2) | 3,883 | 4,193 | 7,838 | 6,454 | 5,875 | 7,838 | ||||||
Delinquency - Acquired loan and lease portfolio | ||||||||||||
Loans 30-89 days past due and accruing (3)(7) | $ | 493 | $ | 474 | $ | 67 | $ | 1,109 | $ | 1,108 | $ | 67 |
Loans 90 days or more past due | 1,229 | 1,218 | 1,316 | 1,420 | 1,110 | 1,316 | ||||||
Total acquired loans and leases past due and accruing | 1,722 | 1,692 | 1,383 | 2,529 | 2,218 | 1,383 | ||||||
Total loans and leases past due and accruing | $ | 5,605 | $ | 5,885 | $ | 9,221 | $ | 8,983 | $ | 8,093 | $ | 9,221 |
Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||
Balance at beginning of period | $ | 40,245 | $ | 43,321 | $ | 41,289 | $ | 41,111 | $ | 40,107 | $ | 39,686 |
Provision for loan and lease losses | 590 | 480 | 2,046 | 208 | 1,035 | 3,897 | ||||||
Net loan and lease (recoveries) charge-offs | 146 | 3,556 | 14 | 30 | 31 | 262 | ||||||
Allowance for loan and lease losses (originated | ||||||||||||
loan portfolio) - balance at end of period | $ | 40,689 | $ | 40,245 | $ | 43,321 | $ | 41,289 | $ | 41,111 | $ | 43,321 |
Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||
Balance at beginning of period | $ | 83 | $ | 89 | $ | 69 | $ | 114 | $ | 104 | $ | 85 |
Provision (credit) for loan and lease losses | 11 | (35) | 12 | 64 | 10 | 45 | ||||||
Net loan and lease (recoveries) charge-offs | (7) | (29) | (8) | 109 | — | 41 | ||||||
Allowance for loan and lease losses (acquired | ||||||||||||
loan portfolio) - balance at end of period | 101 | 83 | 89 | 69 | 114 | 89 | ||||||
Total allowance for loan and lease losses | $ | 40,791 | $ | 40,328 | $ | 43,410 | $ | 41,358 | $ | 41,225 | $ | 43,410 |
Loan Classification - Originated Portfolio | ||||||||||||
Special Mention | $ | 36,619 | $ | 33,689 | $ | 28,074 | $ | 34,245 | $ | 44,068 | $ | 28,074 |
Substandard | 44,770 | 35,895 | 43,963 | 49,597 | 41,572 | 43,963 | ||||||
Loan Classification - Acquired Portfolio | ||||||||||||
Special Mention | 265 | 270 | 452 | 465 | 469 | 452 | ||||||
Substandard | 2,857 | 2,830 | 2,914 | 3,041 | 3,180 | 2,914 | ||||||
Loan Classifications - Total Portfolio | ||||||||||||
Special Mention | 36,884 | 33,959 | 28,526 | 34,710 | 44,537 | 28,526 | ||||||
Substandard | 47,627 | 38,725 | 46,877 | 52,638 | 44,752 | 46,877 | ||||||
Ratio Analysis
Credit Quality | ||||||||||||||||||
Nonperforming loans and leases/total loans and leases (7) | 0.49 | % | 0.48 | % | 0.55 | % | 0.51 | % | 0.54 | % | 0.55 | % | ||||||
Nonperforming assets/total assets | 0.39 | % | 0.36 | % | 0.42 | % | 0.39 | % | 0.42 | % | 0.42 | % | ||||||
Allowance for originated loan and lease losses/total originated loans and leases | 0.88 | % | 0.89 | % | 0.95 | % | 0.91 | % | 0.91 | % | 0.95 | % | ||||||
Allowance/nonperforming loans and leases | 171.42 | % | 175.51 | % | 163.25 | % | 169.00 | % | 158.08 | % | 163.25 | % | ||||||
Net loan and lease losses annualized/total average loans and leases | 0.01 | % | 0.30 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.01 | % | ||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Year-Ended | ||||||||||||||||||
Capital Adequacy (period-end) | Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Dec-18 | ||||||||||||
Tangible common equity/tangible assets | 8.50 | % | 8.24 | % | 7.81 | % | 7.49 | % | 7.36 | % | 7.81 | % | ||||||
Profitability | ||||||||||||||||||
Return on average assets * | 1.15 | % | 1.27 | % | 1.12 | % | 1.23 | % | 1.32 | % | 1.23 | % | ||||||
Return on average equity * | 11.96 | % | 13.53 | % | 12.38 | % | 13.89 | % | 15.13 | % | 13.93 | % | ||||||
Net interest margin (TE) * | 3.34 | % | 3.34 | % | 3.34 | % | 3.35 | % | 3.36 | % | 3.37 | % | ||||||
* 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 | |||||||||||||||||
Jun-19 | Mar-19 | Dec-18 | Sep-18 | Jun-18 | Dec-18 | |||||||||||||
Net income available to common shareholders | $ | 19,392 | $ | 21,040 | $ | 18,911 | $ | 20,902 | $ | 22,059 | $ | 82,308 | ||||||
Income attributable to unvested stock-based compensation awards | 306 | 349 | 291 | 318 | 359 | 1,315 | ||||||||||||
Net earnings allocated to common shareholders | 19,086 | 20,691 | 18,620 | 20,584 | 21,700 | 80,993 | ||||||||||||
Gain on sale of real estate, net of tax | 0 | 0 | 0 | 0 | 2,227 | 2,227 | ||||||||||||
Write-down of impaired leases, net of tax | 0 | 0 | 0 | (388 | ) | (1,527 | ) | (1,915 | ) | |||||||||
Net income (Non-GAAP) | 19,086 | 20,691 | 18,620 | 20,972 | 21,000 | 80,681 | ||||||||||||
Weighted average shares outstanding (diluted) | 15,085,945 | 15,136,523 | 15,135,750 | 15,144,491 | 15,135,970 | 15,132,257 | ||||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 1.27 | $ | 1.37 | $ | 1.23 | $ | 1.38 | $ | 1.39 | $ | 5.33 | ||||||
Non-GAAP Disclosure - Tangible Book Value Per Share | ||||||||||||||||||
Total common equity | $ | 656,201 | $ | 645,823 | $ | 619,459 | $ | 597,636 | $ | 589,173 | $ | 619,459 | ||||||
Less: Goodwill and intangibles (9) | 98,698 | 98,694 | 99,106 | 99,543 | 99,983 | 99,106 | ||||||||||||
Tangible common equity | 557,503 | 547,129 | 520,353 | 498,093 | 489,190 | 520,353 | ||||||||||||
Ending shares outstanding | 15,160,719 | 15,314,078 | 15,312,377 | 15,277,915 | 15,278,430 | 15,312,377 | ||||||||||||
Tangible book value per share (Non-GAAP) | $ | 36.77 | $ | 35.73 | $ | 33.98 | $ | 32.60 | $ | 32.02 | $ | 33.98 | ||||||
(1) Federal Reserve peer ratio as of March 31, 2019, 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, 2018.
(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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190719005063/en/
Contacts:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753
