TMP Tompkins Financial Corporation

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported)

January 22, 2015

 

Tompkins Financial Corporation

---

(Exact Name of Registrant as specified in Charter)

 

New York	1-12709	16-1482357
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

 

The Commons, PO Box 460, Ithaca, New York	14851
(Address of Principal Executive Offices)	(Zip Code)

 

Registrant’s telephone number, including area code

(607) 273-3210

 

 

---

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02    Results of Operations and Financial Condition

 

On January 28, 2015, Tompkins Financial Corporation, (the “Company”) issued a press release announcing its earnings for the calendar quarter ended December 31, 2014. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

Item 5.02(b)    Departure of Directors or Certain Officers

 

Director James R. Hardie has reached the mandatory retirement age of 72 as outlined in Article IV, Section 4 of the Company’s Second Amended and Restated Bylaws and will, therefore, not stand for re-election to the Company’s Board of Directors at the 2015 Annual Meeting of Shareholders.

 

On January 22, 2015, Director William D. Spain, Jr. requested that he not be considered for re-nomination to the Company’s Board of Directors at the 2015 Annual Meeting of Shareholders.

 

Item 8.01    Other Events

 

On January 28, 2015, the Company issued a press release announcing that its Board of Directors approved payment of a regular quarterly cash dividend of $0.42 per share, payable on February 17, 2015, to common shareholders of record on February 9, 2015. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference. 

Item 9.01    Financial Statements and Exhibits

 

(a) Not applicable.

(b) Not applicable.

(c)  Not applicable.

(d) Exhibits.

 

 

	Exhibit No.	Description
	99.1	Press Release of Tompkins Financial Corporation dated January 28, 2015

99.2

Press Release of Tompkins Financial Corporation dated January 28, 2015

 

  

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	TOMPKINS FINANCIAL CORPORATION
Date: January 28, 2015	By:	/s/ Stephen S. Romaine
		Stephen S. Romaine President and CEO

 

 

 

 

INDEX TO EXHIBITS

 

 

EXHIBIT NUMBER		EXHIBIT DESCRIPTION
99.1		Press Release of Tompkins Financial Corporation dated January 28, 2015
99.2		Press Release of Tompkins Financial Corporation dated January 28, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Wednesday, January 28, 2015

 

Tompkins Financial Corporation Reports Fourth Quarter Earnings

 

ITHACA, NY – Tompkins Financial Corporation (NYSEMKT:TMP)

 

Tompkins Financial Corporation reported record diluted earnings per share of $3.48 for the year ended December 31, 2014, up from $3.46 per share reported in 2013. The Company reported diluted earnings per share of $0.85 for the fourth quarter of 2014, down from the $0.96 reported for December 31, 2013. Both quarterly and year-to-date results in 2013 included non-recurring income and expense items, which are more fully described in the non-GAAP disclosure tables included in this press release. Adjusting for these non-recurring items, diluted earnings per share for the year ended December 31, 2014, reflected an increase of 3.6% over 2013; while diluted earnings per share for the quarter ended December 31, 2014, reflected a decrease of 6.6% from the same period in 2013.

President and CEO, Stephen S. Romaine said “We are excited to report on another record year of earnings for our Company. These results were achieved through a combination of factors that included revenue growth from both Net Interest Income and Noninterest Income. The current year results also benefited from improved credit quality trends that contributed to a reduced provision for loan and lease losses. Nonperforming assets have improved for five consecutive quarters”.

Selected highlights FOR fourth QUARTER:

§

Credit quality continues to improve with nonperforming asset down 11.8% compared to the most recent quarter end, and down 34.7% compared to December 31, 2013.

§	Year end loan balances were up 6.2% over December 31, 2013 and are up 4.2% over the most recent quarter end.

 

 

§	Average noninterest bearing deposits were up 12.1% as compared to the prior year, and are up 5.3% for the quarter as compared to the most recent quarter.

§

Year-to-date provision expense was down 62.6% compared to 2013, with year-to-date net charge offs down 54.9% from the prior year.

§	Fee based income from insurance, investment services, and deposit service charges were all up from the same quarter last year, and were up a combined 3.6% for the full year.

§	Tangible book value per share is up 8.4% from the fourth quarter of 2013. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income was $41.7 million for the fourth quarter of 2014, an increase of 0.3% over the most recent quarter and a decrease of 2.2% when compared to the same quarter in 2013. Year-to-date net interest income of $163.8 million was up 1.7% compared to net interest income of $161.1 million reported for the same period in 2013. Improved year-to-date net interest income was achieved mainly as a result of growth in average loans (up 6.1% from 2013) and average noninterest bearing deposits (up 12.1% from 2013). The net interest margin for the fourth quarter of 2014 was 3.53%, compared to 3.58% for the prior quarter end, and 3.78% for the same period in 2013.

NONINTEREST INCOME

Noninterest income was $18.1 million for the fourth quarter of 2014, and $70.8 million year-to-date, up 3.5% and 1.2%, respectively, compared to December 31, 2013. For the year-to-date period noninterest income represented 30.2% of total revenue which was in line with the same period in 2013.

Fee based revenue increased year-over-year with insurance revenues up 2.1%, investment revenue up 2.5%, deposit fee revenue up 10.7%, and card servicing revenue up 10.1%. Revenue related to the fee based business areas represented 26.1% of total revenues, compared to 25.4% for 2013.

NONINTEREST EXPENSE

Noninterest expense was $39.0 million for the fourth quarter of 2014, down 3.1% compared to the fourth quarter of 2013. For the year-to-date period, noninterest expense was up 1.0% from the same period in 2013. The slight decrease in noninterest expense compared to the prior quarter is mainly due to the decrease in salary and wage expense.

 

 

ASSET QUALITY

Asset quality trends continue to improve with nonperforming assets down 11.8% compared to prior quarter end, and down 34.7% compared to December 31, 2013. The percentages of nonperforming assets to total assets of 0.54% were down compared to prior quarter end and prior year end percentages of 0.63% and 0.87%, respectively. Nonperforming assets levels have shown improvement for 23 consecutive quarters and remain well below the most recent peer average of 1.39% reported by the Federal Reserve1. Substandard and Special Mention loans were $83.6 million at December 31, 2014, down from $85.4 million at the most recent prior quarter end and $128.3 million at the same quarter end last year. Provision expense for loan and lease losses for the year-to-date period was down 62.6% compared to the 2013 year-to-date period, mainly a result of the asset quality improvements.

The Company’s allowance for originated loan and lease losses totaled $28.2 million at December 31, 2014, which represented 0.99% of total originated loans, compared to $26.7 million or 1.06% at December 31, 2013 and $27.2 million or 1.02% at September 30, 2014. The increase in the allowance when compared to the same period last year was primarily a result of loan growth and was partially offset by improved asset quality. The allowance for loan and lease losses covered 128.4% of nonperforming loans and leases as of December 31, 2014, up from 71.7% at December 31, 2013 and 108.9% at the most recent prior quarter.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets was 8.75% at December 31, 2014, compared to 8.52% reported for the same period prior year. The ratio of total capital to risk-weighted assets was 13.60% at December 31, 2014, up from 13.42% at December 31, 2013.

 

 

 

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

NON-GAAP MEASURES

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

“Safe Harbor” Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

 

 

 

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) (Unaudited)				As of		As of
ASSETS				12/31/2014		12/31/2013
Cash and noninterest bearing balances due from banks			$	53,921	$	82,163
Interest bearing balances due from banks				2,149		721
	Cash and Cash Equivalents			56,070		82,884
Trading securities, at fair value				8,992		10,991
Available-for-sale securities, at fair value (amortized cost of $1,397,458 at December 31,
	2014 and $1,368,736 at December 31, 2013)			1,402,236		1,354,811
Held-to-maturity securities, at amortized cost (fair value of $89,036 at December 31, 2014
	and $19,625 at December 31, 2013)			88,168		18,980
Originated loans and leases, net of unearned income and deferred costs and fees				2,839,974		2,527,244
Acquired loans and leases, covered				19,319		25,868
Acquired loans and leases, non-covered				533,995		641,172
Less:  Allowance for loan and lease losses				28,997		27,970
	Net Loans and Leases			3,364,291		3,166,314
FDIC indemnification asset				1,903		4,790
Federal Home Loan Bank stock				21,259		25,041
Bank premises and equipment, net				59,800		55,932
Corporate owned life insurance				73,725		69,335
Goodwill				92,243		92,140
Other intangible assets, net				14,649		16,298
Accrued interest and other assets				86,225		105,523
	Total Assets		$	5,269,561	$	5,003,039
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,247,708		2,190,616
	Time			898,081		865,702
	Noninterest bearing			1,023,365		890,898
	Total Deposits			4,169,154		3,947,216
Federal funds purchased and securities sold under agreements to repurchase				147,037		167,724
Other borrowings, including certain amounts at fair value of $10,961 at December 31, 2014
	and $11,292 at December 31, 2013			356,541		331,531
Trust preferred debentures				37,337		37,169
Other liabilities				69,909		61,460
	Total Liabilities		$	4,779,978	$	4,545,100
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,931,354 at December 31, 2014; and 14,785,007 at December 31, 2013		1,493		1,479
	Additional paid-in capital			348,889		346,096
	Retained earnings			165,160		137,102
	Accumulated other comprehensive loss			(24,011)		(25,119)
	Treasury stock, at cost – 111,436 shares at December 31, 2014, and 105,449 shares
		at December 31, 2013		(3,400)		(3,071)
	Total Tompkins Financial Corporation Shareholders’ Equity			488,131		456,487
Noncontrolling interests				1,452		1,452
	Total Equity		$	489,583	$	457,939
	Total Liabilities and Equity		$	5,269,561	$	5,003,039
See notes to consolidated financial statements

 

 

 

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended				Twelve Months Ended
(In thousands, except per share data) (Unaudited)			12/31/2014		12/31/2013		12/31/2014		12/31/2013
INTEREST AND DIVIDEND INCOME
Loans		$	38,366	$	39,684	$	150,966	$	151,711
Due from banks			0		1		2		10
Trading securities			97		117		418		589
Available-for-sale securities			7,661		8,138		31,298		31,360
Held-to-maturity securities			373		157		999		685
Federal Home Loan Bank stock and Federal Reserve Bank stock			194		211		810		749
Total Interest and Dividend Income			46,691		48,308		184,493		185,104
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more			946		1,181		3,845		4,832
Other deposits			1,790		1,841		7,236		7,933
Federal funds purchased and securities sold under agreements to
repurchase			684		872		2,947		3,749
Trust preferred debentures			573		562		2,287		2,599
Other borrowings			1,006		1,228		4,368		4,862
Total Interest Expense			4,999		5,684		20,683		23,975
Net Interest Income			41,692		42,624		163,810		161,129
Less:  Provision for loan and lease losses			1,555		585		2,306		6,161
Net Interest Income After Provision for Loan and Lease Losses			40,137		42,039		161,504		154,968
NONINTEREST INCOME
Insurance commissions and fees			6,666		6,328		28,489		27,916
Investment services income			3,945		3,929		15,493		15,109
Service charges on deposit accounts			2,394		2,309		9,404		8,495
Card services income			1,974		2,053		7,942		7,216
Mark-to-market loss on trading securities			(89)		(66)		(269)		(538)
Mark-to-market gain on liabilities held at fair value			71		12		331		555
Other income			2,854		2,998		8,984		10,546
Gain (loss) on sale of available-for-sale securities			241		(124)		391		599
Total Noninterest Income			18,056		17,439		70,765		69,898
NONINTEREST EXPENSES
Salaries and wages			17,699		18,582		69,558		67,200
Pension and other employee benefits			5,138		5,150		21,102		22,164
Net occupancy expense of premises			2,908		2,892		12,203		11,757
Furniture and fixture expense			1,461		1,334		5,708		5,701
FDIC insurance			678		813		2,906		3,214
Amortization of intangible assets			525		549		2,095		2,197
Merger related expenses			0		0		0		228
Other operating expense			10,609		10,931		41,121		40,641
Total Noninterest Expenses			39,018		40,251		154,693		153,102
Income Before Income Tax Expense			19,175		19,227		77,576		71,764
Income Tax Expense			6,453		4,905		25,404		20,777
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			12,722		14,322		52,172		50,987
Less:  Net income attributable to noncontrolling interests			33		32		131		131
Net Income Attributable to Tompkins Financial Corporation		$	12,689	$	14,290	$	52,041	$	50,856
Basic Earnings Per Share		$	0.86	$	0.97	$	3.51	$	3.48
Diluted Earnings Per Share		$	0.85	$	0.96	$	3.48	$	3.46
See notes to consolidated financial statements

 

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				December 31, 2014					December 31, 2014					December 31, 2013
				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		$	1,703	$	-	0.00%	$	1,014	$	2	0.20%	$	2,005	$	10	0.50%
	Securities (4)
		U.S. Government securities		1,380,857		7,597	2.18%		1,332,449		30,384	2.28%		1,326,999		28,817	2.17%
		Trading securities		9,299		97	4.14%		10,068		418	4.15%		14,188		589	4.15%
		State and municipal (5)		86,603		754	3.45%		85,402		3,290	3.85%		95,276		4,893	5.14%
		Other securities (5)		4,248		32	2.99%		4,489		139	3.10%		7,714		265	3.44%
		Total securities		1,481,007		8,480	2.27%		1,432,408		34,231	2.39%		1,444,177		34,564	2.39%
	FHLBNY and FRB stock			16,129		194	4.77%		19,168		810	4.23%		22,153		749	3.38%
	Total loans and leases, net of unearned income (5)(6)			3,300,188		39,035	4.69%		3,238,992		152,958	4.72%		3,053,538		153,569	5.03%
	Total interest-earning assets			4,799,027		47,709	3.94%		4,691,582		188,001	4.01%		4,521,873		188,892	4.18%
Other assets				394,320					375,073					406,626
	Total assets			5,193,347					5,066,655					4,928,499
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,348,788		1,036	0.17%		2,286,707		4,312	0.19%		2,224,028		4,938	0.22%
		Time deposits		912,217		1,700	0.74%		904,040		6,769	0.75%		939,630		7,827	0.83%
		Total interest-bearing deposits		3,261,005		2,736	0.33%		3,190,747		11,081	0.35%		3,163,658		12,765	0.40%
Federal funds purchased & securities sold under
		agreements to repurchase		140,241		684	1.93%		145,876		2,947	2.02%		177,784		3,749	2.11%
Other borrowings				229,751		1,006	1.74%		251,312		4,368	1.74%		222,345		4,862	2.19%
Trust preferred debentures				37,314		573	6.09%		37,249		2,287	6.14%		41,643		2,599	6.24%
	Total interest-bearing liabilities			3,668,311		4,999	0.54%		3,625,184		20,683	0.57%		3,605,430		23,975	0.67%
Noninterest bearing deposits				974,657					903,628					806,387
Accrued expenses and other liabilities				54,848					54,244					73,117
	Total liabilities			4,697,816					4,583,056					4,484,934
Tompkins Financial Corporation Shareholders’ equity				493,986					482,087					442,054
Noncontrolling interest				1,545					1,512					1,511
	Total equity			495,531					483,599					443,565
	Total liabilities and equity		$	5,193,347				$	5,066,655				$	4,928,499
Interest rate spread							3.40%					3.44%					3.51%
	Net interest income/margin on earning assets					42,710	3.53%				167,318	3.57%				164,917	3.65%
Tax Equivalent Adjustment						(1,018)					(3,508)					(3,788)
	Net interest income per consolidated financial statements				$	41,692				$	163,810				$	161,129

 

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Dec-14		Sep-14		Jun-14		Mar-14		Dec-13		Dec-14
Period End Balance Sheet
Securities	$	1,499,396	$	1,431,837	$	1,420,226	$	1,408,918	$	1,384,782	$	1,499,396
Originated loans and leases, net of unearned income and deferred costs and fees (2)		2,839,974		2,674,971		2,610,289		2,555,522		2,527,244		2,839,974
Acquired loans and leases (3)		553,314		582,498		618,679		648,690		667,040		553,314
Allowance for  loan and lease losses		28,997		27,786		27,517		28,014		27,970		28,997
Total assets		5,269,561		5,090,919		5,057,821		5,041,800		5,003,039		5,269,561
Total deposits		4,169,154		4,212,860		4,044,389		4,105,170		3,947,216		4,169,154
Federal funds purchased and securities sold under agreements to repurchase		147,037		128,368		144,796		158,794		167,724		147,037
Other borrowings		356,541		166,509		287,158		214,616		331,531		356,541
Trust preferred debentures		37,337		37,298		37,254		37,211		37,169		37,337
Total equity		489,583		490,611		489,237		473,822		457,939		489,583
Average Balance Sheet
Average earning assets	$	4,799,027	$	4,695,860	$	4,666,722	$	4,602,517	$	4,571,099	$	4,691,582
Average assets		5,193,347		5,058,608		5,030,395		4,982,033		4,950,476		5,066,655
Average interest-bearing liabilities		3,668,311		3,587,673		3,620,130		3,624,555		3,574,803		3,625,184
Average equity		495,531		489,920		480,063		468,515		449,445		483,599
Share data
Weighted average shares outstanding (basic)		14,639,631		14,711,709		14,709,881		14,644,548		14,589,120		14,676,622
Weighted average shares outstanding (diluted)		14,765,855		14,795,343		14,821,191		14,775,386		14,731,786		14,789,621
Period-end shares outstanding		14,895,444		14,794,092		14,853,439		14,829,007		14,749,097		14,895,444
Book value per share	$	32.87	$	33.16	$	32.94	$	31.95	$	31.05	$	32.87
Tangible book value per share (Non-GAAP)	$	25.69	$	25.90	$	25.68	$	24.65	$	23.70	$	25.69
Income Statement
Net interest income	$	41,692	$	41,575	$	40,516	$	40,027	$	42,624	$	163,810
Provision (Credit) for loan/lease losses		1,555		(59)		67		743		585		2,306
Noninterest income		18,056		17,555		17,720		17,434		17,439		70,765
Noninterest expense		39,018		38,537		38,928		38,210		40,251		154,693
Income tax expense		6,453		6,897		6,148		5,906		4,905		25,404
Net income attributable to Tompkins Financial Corporation		12,689		13,722		13,061		12,569		14,290		52,041
Noncontrolling interests		33		33		32		33		32		131
Basic earnings per share (9)	$	0.86	$	0.92	$	0.88	$	0.85	$	0.97	$	3.51
Diluted earnings per share (9)	$	0.85	$	0.92	$	0.87	$	0.84	$	0.96	$	3.48
Nonperforming Assets
Originated nonaccrual loans and leases	$	14,299	$	16,319	$	16,918	$	26,974	$	29,875	$	14,299
Acquired nonaccrual loans and leases		4,729		4,998		5,907		6,936		8,508		4,729
Originated loans and leases 90 days past due and accruing		106		395		543		339		607		106
Troubled debt restructurings not included above		3,444		3,800		3,327		1,266		45		3,444
Total nonperforming loans and leases		22,578		25,512		26,695		35,515		39,035		22,578
OREO (8)		5,683		6,533		6,795		5,351		4,253		5,683
Total nonperforming assets	$	28,261	$	32,045	$	33,490	$	40,866	$	43,288	$	28,261

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Dec-14		Sep-14		Jun-14		Mar-14		Dec-13		Dec-14
Loans and leases 30-89 days past due and
accruing (2)	$	6,849	$	3,811	$	5,221	$	5,660	$	5,762	$	6,849
Loans and leases 90 days past due and accruing (2)		106		395		543		339		607		106
Total originated loans and leases past due and accruing (2)		6,955		4,206		5,764		5,999		6,369		6,955
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	533	$	0	$	0	$	635	$	0	$	533
Covered loans and leases 90 days or more past
due and accruing (3)(7)		914		1,149		904		1,135		2,416		914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		1,186		736		1,620		2,293		1,532		1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)		2,614		3,171		3,048		3,746		4,557		2,614
Total acquired loans and leases past due and accruing		5,247		5,056		5,572		7,809		8,505		5,247
Total loans and leases past due and accruing	$	12,202	$	9,262	$	11,336	$	13,808	$	14,874	$	12,202
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	27,185	$	26,752	$	26,661	$	26,700	$	25,722	$	26,700
Provision (Credit) for loan and lease losses		1,102		(264)		(56)		511		(325)		1,293
Net loan and lease (recoveries) charge-offs		131		(697)		(147)		550		(1,303)		(163)
Allowance for loan and lease losses (originated		28,156		27,185		26,752		26,661		26,700		28,156
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	601	$	765	$	1,353	$	1,270	$	686	$	1,270
Provision for loan and lease losses		453		205		123		232		910		1,013
Net loan and lease charge-offs		213		369		711		149		326		1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		841		601		765		1,353		1,270		841
Total allowance for loan and lease losses	$	28,997	$	27,786	$	27,517	$	28,014	$	27,970	$	28,997
Loan Classification - Originated Portfolio
Special Mention	$	36,331	$	27,854	$	35,484	$	44,725	$	42,365	$	36,331
Substandard		19,970		25,889		21,253		32,917		35,022		19,970
Loan Classification - Acquired Portfolio
Special Mention		5,758		7,605		12,124		14,936		17,322		5,758
Substandard		21,567		24,034		30,273		34,137		33,561		21,567
Loan Classifications - Total Portfolio
Special Mention		42,089		35,459		47,608		59,661		59,687		42,089
Substandard		41,537		49,923		51,526		67,054		68,583		41,537

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Dec-14		Sep-14		Jun-14		Mar-14		Dec-13		Dec-14
Nonperforming loans and leases/total loans and leases (7)		0.67%		0.78%		0.83%		1.11%		1.22%		0.67%
Nonperforming assets/total assets		0.54%		0.63%		0.66%		0.81%		0.87%		0.54%
Allowance for originated loan and lease losses/total originated loans and leases		0.99%		1.02%		1.02%		1.04%		1.06%		0.99%
Allowance/nonperforming loans and leases		128.43%		108.92%		103.08%		78.88%		71.65%		128.43%
Net loan and lease losses (recoveries) annualized/total average loans and leases		0.04%		(0.04%)		0.07%		0.09%		(0.12%)		0.09%
Capital Adequacy (period-end)
Tier 1 capital / average assets		8.75%		8.85%		8.79%		8.68%		8.52%		8.75%
Total capital / risk-weighted assets		13.60%		13.92%		13.92%		13.67%		13.42%		13.60%
Tangible Common Equity/Tangible Assets (Non-GAAP)		7.40%		7.68%		7.70%		7.40%		7.13%		7.40%
Profitability
Return on average assets *		0.97%		1.08%		1.04%		1.02%		1.15%		1.03%
Return on average equity *		10.16%		11.11%		10.91%		10.88%		12.62%		10.76%
Net interest margin (TE) *		3.53%		3.58%		3.55%		3.60%		3.78%		3.57%
* Quarterly ratios have been annualized
Non-GAAP Disclosure - Adjusted Noninterest Income
Reported noninterest income (GAAP)	$	18,056	$	17,555	$	17,720	$	17,434	$	17,439	$	70,765
Adjustments (pre-tax):
Gain on deposit conversion		0		0		0		0		(1,285)		0
Noninterest income (Non-GAAP)		18,056		17,555		17,720		17,434		16,154		70,765
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Reported net income (GAAP)	$	12,689	$	13,722	$	13,061	$	12,569	$	14,290	$	52,041
Gain on deposit conversion (net of tax)		0		0		0		0		(771)		0
Net operating income (Non-GAAP)		12,689		13,722		13,061		12,569		13,519		52,041
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.85	$	0.92	$	0.87	$	0.84	$	0.91	$	3.48
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity	$	488,131	$	489,060	$	487,720	$	472,337	$	456,487	$	488,131
Less:  Goodwill and intangibles (10)		105,852		106,377		106,690		107,219		107,395		105,852
Tangible common equity		382,279		382,683		381,030		365,118		349,092		382,279
Total assets		5,269,561		5,090,919		5,057,821		5,041,800		5,003,039		5,269,561
Less:  Goodwill and intangibles (10)		105,852		106,377		106,690		107,219		107,395		105,852
Tangible assets		5,163,709		4,984,542		4,951,131		4,934,581		4,895,644		5,163,709
Tangible common equity / tangible assets (Non-GAAP)		7.40%		7.68%		7.70%		7.40%		7.13%		7.40%

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure - Return on Average		Quarter-Ended									Year-Ended
Tangible Common Equity		Dec-14		Sep-14		Jun-14		Mar-14		Dec-13		Dec-14
Net income available to common shareholders	$	12,539	$	13,604	$	12,943	$	12,452	$	14,156	$	51,538
Gain on deposit conversion (net of tax)		0		0		0		0		(771)		0
Net operating income (Non-GAAP)		12,539		13,604		12,943		12,452		13,385		51,538
Amortization of intangibles (net of tax)		315		311		315		316		329		1,257
Adjusted net operating income (Non-GAAP)		12,854		13,915		13,258		12,768		13,714		52,795
Average common equity	$	493,986	$	488,386	$	478,561	$	467,048	$	447,905	$	482,087
Less:  Average goodwill and intangibles (10)		106,151		106,471		106,988		107,399		107,689		106,748
Average tangible common equity capital		387,835		381,915		371,573		359,649		340,216		375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)		13.15%		14.46%		14.31%		14.40%		15.99%		14.07%
Non-GAAP Disclosure - Tangible Book Value Per Share
Total shareholders’ equity (GAAP)	$	489,583	$	490,611	$	489,237	$	473,822	$	457,939	$	489,583
Less:  goodwill and intangibles (10)		106,892		107,449		107,728		108,250		108,438		106,892
Tangible shareholders’ equity		382,691		383,162		381,509		365,572		349,501		382,691
Ending shares outstanding		14,895,444		14,794,092		14,853,439		14,829,007		14,749,097		14,895,444
Tangible book value per share (Non-GAAP)	$	25.69	$	25.90	$	25.68	$	24.65	$	23.70	$	25.69
Non-GAAP Disclosure - (Adjusted Diluted	Year-to-date period ended
Earnings Per Share)	Dec-14		Dec-13
Net income attributable to Tompkins Financial
Corporation	$	52,041	$	50,856
Adjustments (net of tax):
Merger related expenses		0		140
Gain on redemption of trust preferred securities		0		(846)
Gain on deposit conversion		0		(771)
Subtotal adjustments		0		(1,477)
Net operating income (Non-GAAP)	$	52,041	$	49,379
Adjusted diluted earnings per share (Non-GAAP)	$	3.48	$	3.36
(1) Federal Reserve peer ratio as of September 30, 2014, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) “Originated” equals loans and leases not included by definition in “acquired loans”
(3)”Acquired Loans and Leases” equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805.  “Covered Loans” are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) Nonaccrual loans are included in the average asset totals presented above.  Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company’s consolidated financial statements included in Part I of the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans.  The risk of credit loss on these loans has been considered by virtue of the Corporation’s estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(10) “Goodwill and intangibles” equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

 

 

 

 

Tompkins Financial Corporation 8-K

Exhibit 99.2 

 

 

 

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, CFO & COO

Tompkins Financial Corporation (888) 503-5753

 

For Immediate Release

Wednesday, January 28, 2015

 

 

Tompkins Financial Corporation Declares Cash Dividend

 

ITHACA, NY - Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.42 per share, payable on February 17, 2015, to common shareholders of record on February 9, 2015. 

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.