TMP Tompkins Financial Corporation

Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported record diluted earnings per share of $3.87 for the year ended December 31, 2015, up 11.2% from $3.48 per share reported for the year ended December 31, 2014. The Company reported diluted earnings per share of $0.92 for the fourth quarter of 2015, an increase of 8.2% from the $0.85 reported for the fourth quarter of 2014.

Year-to-date results in 2015 included a non-recurring income item, which is more fully described in the non-GAAP disclosure tables included in this press release. Excluding this non-recurring item, diluted earnings per share for the year-to-date period ended December 31, 2015 reflected an increase of 4.3%.

President and CEO, Stephen S. Romaine said "We are pleased to report on continued strong earnings performance for the current quarter and annual periods. 2015 was our third consecutive year of record earnings. Strong growth in the loan portfolio was a key driver of our success during the current year, which helped offset the negative impact of a declining net interest margin.”

SELECTED HIGHLIGHTS FOR FOURTH QUARTER:

• Year end loan balances were up 11.2% over December 31, 2014, and are up 3.8% over the most recent prior quarter end.
• Noninterest-bearing deposits were up 11.3% compared to prior year-end, and up 2.4% compared to the most recent prior quarter.
• Credit quality continues to improve with nonperforming assets down 13.3% compared to the fourth quarter of 2014, and down 7.3% compared to third quarter of 2015.
• Criticized and Classified loan balances were down 33.8% from the fourth quarter of 2014, and down 21.1% compared to third quarter of 2015.
• Net interest income for the fourth quarter of 2015 was up 4.2% compared to fourth quarter of 2014, and up 2.5% compared to the most recent prior quarter.
• Tangible book value per share increased 7.1% from the fourth quarter of 2014, and was down 0.6% from the most recent prior quarter. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $43.4 million for the fourth quarter of 2015 reflected an increase of 2.5% when compared to the most recent prior quarter end, and an increase of 4.2% when compared to the same period in 2014. Year-to-date net interest income of $168.4 million was up 2.8% compared to the same period in 2014. Growth in loans helped offset the decline in the net interest margin, which was 3.35% for the fourth quarter 2015 and prior quarter, and 3.53% for the fourth quarter 2014.

Average loan balances for the year ended December 31, 2015, were up 9.0%, and average deposit balances were up 4.7% compared to average balances for the year ended December 31, 2014.

NONINTEREST INCOME

Noninterest income represented 29.9% of total revenues for the year ended December 31, 2015, compared to 30.2% in 2014. Noninterest income was $17.9 million for the fourth quarter of 2015, and $71.9 million year-to-date, down 0.8% and up 1.7%, respectively, when compared to the same periods last year. Contributing to the year-to-date growth were an increase in insurance revenue of $797,000, an increase in net gains on the sale of securities of $717,000, and an increase in net gains on the sale of other real estate owned of $355,000.

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the fourth quarter of 2015, which was in line with the same period last year. Year-to-date noninterest expense of $149.9 million was down 3.1% compared to the year-to-date period in 2014. Year-to-date results included a $6.0 million gain on a pension plan curtailment recorded in the second quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan, which has been replaced with a more flexible defined contribution pension plan.

ASSET QUALITY

Asset quality remained strong in the fourth quarter of 2015. Fourth quarter nonperforming assets were down 13.3% compared to same period in 2014, and down 7.3% compared to the most recent prior quarter end. Nonperforming assets represented 0.43% of total assets at December 31, 2015, down from 0.47% at the prior quarter end, and 0.54% at the prior year end. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.97%. Substandard and Special Mention loan balances decreased by 32.3% compared to year end 2014, and by 19.3% compared to the most recent prior quarter.

Provision for loan and lease losses was $1.5 million for the current quarter, and $2.9 million for the full year ended December 31, 2015, compared to $1.6 million and $2.3 million for the respective periods in 2014. The year-over-year increase in provision expense is primarily due to growth in the loan portfolio.

The Company’s allowance for originated loan and lease losses increased to $31.3 million at December 31, 2015, up from $28.2 million at December 31, 2014. This increase in the allowance is mainly due to loan growth and is partially offset by improved asset quality. This allowance represented 0.95% of originated loans and leases at December 31, 2015, compared to 0.99% a year earlier. The total allowance represented 146.74% of total nonperforming loans and leases at December 31, 2015, up from 128.4% at December 31, 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.82% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) of 7.37% was in line with the 7.40% reported at December 31, 2014.

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 CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CONDITION

  (In thousands, except share and per share data) (Unaudited) As of As of ASSETS 12/31/2015 12/31/2014   Cash and noninterest bearing balances due from banks $ 56,261 $ 53,921 Interest bearing balances due from banks       1,996     2,149 Cash and Cash Equivalents 58,257 56,070   Trading securities, at fair value 7,368 8,992 Available-for-sale securities, at fair value (amortized cost of $1,390,255 at December 31, 2015 and $1,397,458 at December 31, 2014) 1,385,684 1,402,236 Held-to-maturity securities, at amortized cost (fair value of $146,686 at December 31, 2015 and $89,036 at December 31, 2014) 146,071 88,168 Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,310,768 2,839,974 Acquired loans and leases, covered (3) 14,031 19,319 Acquired loans and leases, non-covered (3) 447,243 533,995 Less: Allowance for loan and lease losses       32,004     28,997 Net Loans and Leases 3,740,038 3,364,291   FDIC indemnification asset 158 1,903 Federal Home Loan Bank stock 29,969 21,259 Bank premises and equipment, net 60,331 59,800 Corporate owned life insurance 75,792 73,725 Goodwill 91,792 92,243 Other intangible assets, net 12,448 14,649 Accrued interest and other assets       82,087     86,225 Total Assets     $ 5,689,995   $ 5,269,561   LIABILITIES Deposits: Interest bearing: Checking, savings and money market 2,401,519 2,247,708 Time 855,133 898,081 Noninterest bearing       1,138,654     1,023,365 Total Deposits 4,395,306 4,169,154   Federal funds purchased and securities sold under agreements to repurchase 136,513 147,037 Other borrowings, including certain amounts at fair value of $10,576 at December 31, 2015 and $10,961 at December 31, 2014 536,285 356,541 Trust preferred debentures 37,509 37,337 Other liabilities       67,916     69,909 Total Liabilities     $ 5,173,529   $ 4,779,978   EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,015,594 at December 31, 2015; and 14,931,354 at December 31, 2014 1,502 1,493 Additional paid-in capital 350,823 348,889 Retained earnings 197,445 165,160 Accumulated other comprehensive loss (31,001) (24,011) Treasury stock, at cost – 113,787 shares at December 31, 2015, and 111,436 shares at December 31, 2014 (3,755) (3,400)   Total Tompkins Financial Corporation Shareholders’ Equity 515,014 488,131 Noncontrolling interests       1,452     1,452 Total Equity     $ 516,466   $ 489,583 Total Liabilities and Equity     $ 5,689,995   $ 5,269,561    

TOMPKINS FINANCIAL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME

      Three Months Ended   Twelve Months Ended (In thousands, except per share data) (Unaudited) 12/31/2015   12/31/2014 12/31/2015   12/31/2014 INTEREST AND DIVIDEND INCOME Loans $ 39,966 $ 38,366 $ 154,636 $ 150,966 Due from banks 1 0 4 2 Trading securities 82 97 352 418 Available-for-sale securities 7,306 7,661 29,525 31,298 Held-to-maturity securities 915 373 3,100 999 Federal Home Loan Bank stock and Federal Reserve Bank stock       295     194     1,129     810 Total Interest and Dividend Income       48,565     46,691     188,746     184,493 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 309 348 1,367 1,370 Other deposits 2,247 2,388 9,084 9,711 Federal funds purchased and securities sold under agreements to repurchase 689 684 2,709 2,947 Trust preferred debentures 582 573 2,308 2,287 Other borrowings       1,301     1,006     4,897     4,368 Total Interest Expense       5,128     4,999     20,365     20,683 Net Interest Income       43,437     41,692     168,381     163,810 Less: Provision for loan and lease losses       1,533     1,555     2,945     2,306 Net Interest Income After Provision for Loan and Lease Losses       41,904     40,137     165,436     161,504 NONINTEREST INCOME Insurance commissions and fees 6,945 6,666 29,286 28,489 Investment services income 3,898 3,945 15,416 15,493 Service charges on deposit accounts 2,513 2,394 9,325 9,404 Card services income 1,993 1,974 7,837 7,942 Mark-to-market loss on trading securities (89) (89) (295) (269) Mark-to-market gain on liabilities held at fair value 159 71 385 331 Other income 2,488 2,854 8,878 8,984 Gain on sale of available-for-sale securities       3     241     1,108     391 Total Noninterest Income       17,910     18,056     71,940     70,765 NONINTEREST EXPENSES Salaries and wages 18,388 17,699 72,707 69,558 Pension and other employee benefits 5,182 5,138 16,025 21,102 Net occupancy expense of premises 3,009 2,908 12,312 12,203 Furniture and fixture expense 1,681 1,461 6,146 5,708 FDIC insurance 774 678 2,992 2,906 Amortization of intangible assets 510 525 2,013 2,095 Other operating expense       9,826     10,609     37,667     41,121 Total Noninterest Expenses       39,370     39,018     149,862     154,693 Income Before Income Tax Expense       20,444     19,175     87,514     77,576 Income Tax Expense       6,557     6,453     28,962     25,404 Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation       13,887     12,722     58,552     52,172 Less: Net income attributable to noncontrolling interests       33     33     131     131 Net Income Attributable to Tompkins Financial Corporation     $ 13,854   $ 12,689   $ 58,421   $ 52,041 Basic Earnings Per Share $ 0.93 $ 0.86 $ 3.91 $ 3.51 Diluted Earnings Per Share     $ 0.92   $ 0.85   $ 3.87   $ 3.48     Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)                   Quarter Ended Year to Date Period Ended Year to Date Period Ended       December 31, 2015     December 31, 2015     December 31, 2014 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 $ 2,070 $ 1 0.19% $ 1,812 $ 4 0.22% $ 1,014 $ 2 0.20% Securities (4) U.S. Government securities 1,441,597 7,693 2.12% 1,441,420 30,500 2.12% 1,332,449 30,384 2.28% Trading securities 7,621 82 4.32% 8,231 352 4.28% 10,068 418 4.15% State and municipal (5) 93,425 823 3.49% 88,504 3,308 3.74% 85,402 3,290 3.85% Other securities (5) 3,917     30   3.04%     3,785     121   3.20%     4,489     139   3.10% Total securities 1,546,560 8,628 2.21% 1,541,940 34,281 2.22% 1,432,408 34,231 2.39% FHLBNY and FRB stock 24,861 295 4.71% 24,046 1,129 4.70% 19,168 810 4.23%   Total loans and leases, net of unearned income (5)(6) 3,687,488     40,675   4.38%     3,531,945     157,222   4.45%     3,238,992     152,958   4.72% Total interest-earning assets 5,260,979     49,599   3.74%     5,099,743     192,636   3.78%     4,691,582     188,001   4.01%   Other assets 363,372 355,471 375,073   Total assets 5,624,351 5,455,214 5,066,655                                                   LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market 2,453,336 957 0.15% 2,363,087 3,821 0.16% 2,286,707 4,312 0.19% Time deposits 867,140     1,599   0.73%     895,391     6,630   0.74%     904,040     6,769   0.75% Total interest-bearing deposits 3,320,476 2,556 0.31% 3,258,478 10,451 0.32% 3,190,747 11,081 0.35%   Federal funds purchased & securities sold under agreements to repurchase 143,389 689 1.91% 137,917 2,709 1.96% 145,876 2,947 2.02% Other borrowings 429,361 1,301 1.20% 417,737 4,897 1.17% 251,312 4,368 1.74% Trust preferred debentures 37,481     582   6.16%     37,417     2,308   6.17%     37,249     2,287   6.14% Total interest-bearing liabilities 3,930,707 5,128 0.52% 3,851,549 20,365 0.53% 3,625,184 20,683 0.57%   Noninterest bearing deposits 1,107,370 1,029,545 903,628 Accrued expenses and other liabilities 67,745 66,366 54,244 Total liabilities 5,105,822 4,947,460 4,583,056   Tompkins Financial Corporation Shareholders’ equity 516,988 506,243 482,087 Noncontrolling interest 1,541 1,511 1,512 Total equity 518,529 507,754 483,599   Total liabilities and equity $ 5,624,351 $ 5,455,214 $ 5,066,655 Interest rate spread     3.22%     3.25%     3.44% Net interest income/margin on earning assets 44,471 3.35% 172,271 3.38% 167,318 3.57%   Tax Equivalent Adjustment (1,034) (3,890) (3,508)   Net interest income per consolidated financial statements         $ 43,437             $ 168,381             $ 163,810         Tompkins Financial Corporation - Summary Financial Data (Unaudited)                                     (In thousands, except per share data)   Quarter-Ended   Year-Ended   Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15           Period End Balance Sheet                                     Securities   $ 1,539,123   $ 1,542,332   $ 1,536,374   $ 1,555,597   $ 1,499,396   $ 1,539,123 Originated loans and leases, net of unearned income and deferred costs and fees (2)     3,310,768     3,149,386     3,013,968     2,898,533     2,839,974     3,310,768 Acquired loans and leases (3)     461,274     484,927     507,963     529,024     553,314     461,274 Allowance for loan and lease losses     32,004     30,965     30,091     29,485     28,997     32,004 Total assets     5,689,995     5,594,718     5,436,136     5,357,533     5,269,561     5,689,995 Total deposits     4,395,306     4,437,073     4,204,089     4,282,766     4,169,154     4,395,306 Federal funds purchased and securities sold under agreements to repurchase     136,513     134,941     131,063     135,769     147,037     136,513 Other borrowings     536,285     398,946     493,326     330,850     356,541     536,285 Trust preferred debentures     37,509     37,466     37,423     37,380     37,337     37,509 Total common equity     515,014     516,409     503,877     502,811     488,131     515,014 Total equity     516,466     517,959     505,394     504,296     489,583     516,466   Average Balance Sheet                                     Average earning assets   $ 5,260,979   $ 5,138,665   $ 5,038,586   $ 4,956,972   $ 4,799,027   $ 5,099,743 Average assets     5,624,351     5,486,645     5,391,114     5,315,002     5,193,347     5,455,214 Average interest-bearing liabilities     3,930,707     3,856,025     3,835,430     3,782,355     3,668,311     3,851,549 Average equity     518,529     509,518     505,667     497,047     495,531     507,754   Share data                                     Weighted average shares outstanding (basic)     14,719,394     14,739,915     14,751,844     14,701,397     14,639,631     14,728,193 Weighted average shares outstanding (diluted)     14,869,103     14,866,735     14,878,107     14,837,935     14,765,855     14,863,026 Period-end shares outstanding     14,979,684     14,905,576     14,942,107     14,962,079     14,895,444     14,979,684 Common equity book value per share   $ 34.38   $ 34.65   $ 33.72   $ 33.61   $ 32.77   $ 34.38 Tangible book value per share (Non-GAAP)   $ 27.48   $ 27.64   $ 26.71   $ 26.56   $ 25.66   $ 27.48   Income Statement                                     Net interest income   $ 43,437   $ 42,386   $ 41,330   $ 41,228   $ 41,692   $ 168,381 Provision (Credit) for loan/lease losses     1,533     281     922     209     1,555     2,945 Noninterest income     17,910     17,422     18,962     17,646     18,056     71,940 Noninterest expense     39,370     37,882     32,918     39,692     39,018     149,862 Income tax expense     6,557     7,115     9,030     6,260     6,453     28,962 Net income attributable to Tompkins Financial Corporation     13,854     14,497     17,390     12,680     12,689     58,421 Noncontrolling interests     33     33     32     33     33     131 Basic earnings per share (9)   $ 0.93   $ 0.97   $ 1.16   $ 0.85   $ 0.86   $ 3.91 Diluted earnings per share (9)   $ 0.92   $ 0.96   $ 1.15   $ 0.84   $ 0.85   $ 3.87   Nonperforming Assets                                     Originated nonaccrual loans and leases   $ 13,506   $ 14,821   $ 14,566   $ 13,811   $ 14,299   $ 13,506 Acquired nonaccrual loans and leases     4,331     4,908     5,030     4,683     4,729     4,331 Originated loans and leases 90 days past due and accruing     58     57     58     236     106     58 Troubled debt restructurings not included above     3,915     3,465     1,939     1,589     3,444     3,915 Total nonperforming loans and leases     21,810     23,251     21,593     20,319     22,578     21,810 OREO (8)     2,692     3,188     2,570     5,816     5,683     2,692 Total nonperforming assets   $ 24,502   $ 26,439   $ 24,163   $ 26,135   $ 28,261   $ 24,502                                       Quarter-Ended   Year-Ended Delinquency - Originated loan and lease portfolio     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15 Loans and leases 30-89 days past due and                                     accruing (2)   $ 3,280   $ 3,550   $ 3,315   $ 2,438   $ 6,849   $ 3,280 Loans and leases 90 days past due and accruing (2)     58     57     58     236     106     58 Total originated loans and leases past due and accruing (2)     3,338     3,607     3,373     2,674     6,955     3,338   Delinquency - Acquired loan and lease portfolio   Covered loans and leases 30-89 days past due and accruing (3)(7)   $ 276   $ 309   $ 455   $ 547   $ 533   $ 276 Covered loans and leases 90 days or more past                                     due and accruing (3)(7)     524     508     674     682     914     524 Non-covered loans and leases 30-89 days past due and accruing (3)(7)     933     1,028     917     2,546     1,186     933 Non-covered loans and leases 90 days past                                     due and accruing (3)(7)     1,991     2,069     3,031     2,811     2,614     1,991 Total acquired loans and leases past due and accruing     3,724     3,914     5,077     6,586     5,247     3,724 Total loans and leases past due and accruing   $ 7,062   $ 7,521   $ 8,450   $ 9,260   $ 12,202   $ 7,062   Allowance for Loan Losses - Originated loan and lease portfolio   Balance at beginning of period   $ 30,450   $ 29,428   $ 28,690   $ 28,156   $ 27,185   $ 28,156 Provision for loan and lease losses     1,185     173     769     340     1,102     2,467 Net loan and lease charge-offs (recoveries)     323     (849)     31     (194)     131     (689) Allowance for loan and lease losses (originated 31,312 30,450 29,428 28,690 28,156 31,312 loan portfolio) - balance at end of period   $   $   $   $   $   $   Allowance for Loan Losses - Acquired loan and lease portfolio   Balance at beginning of period   $ 515   $ 663   $ 795   $ 841   $ 601   $ 841 Provision (Credit) for loan and lease losses     348     108     153     (131)     453     478 Net loan and lease charge-offs (recoveries)     171     256     285     (85)     213     627 Allowance for loan and lease losses (acquired                                     loan portfolio) - balance at end of period     692     515     663     795     841     692                                       Total allowance for loan and lease losses   $ 32,004   $ 30,965   $ 30,091   $ 29,485   $ 28,997   $ 32,004                                       Loan Classification - Originated Portfolio                                     Special Mention   $ 19,657   $ 25,133   $ 25,706   $ 34,965   $ 36,331   $ 19,657 Substandard     18,186     19,937     21,600     19,150     19,970     18,186 Loan Classification - Acquired Portfolio                                     Special Mention     540     1,446     1,589     5,053     5,758     540 Substandard     17,007     23,683     21,932     21,752     21,567     18,238 Loan Classifications - Total Portfolio                                     Special Mention     20,197     26,579     27,295     40,018     42,089     20,197 Substandard     35,193     43,620     43,532     40,902     41,537     36,424                                     RATIO ANALYSIS   Quarter-Ended   Year-Ended Credit Quality     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15 Nonperforming loans and leases/total loans and leases (7)     0.58%     0.64%     0.61%     0.59%     0.67%     0.58% Nonperforming assets/total assets     0.43%     0.47%     0.44%     0.49%     0.54%     0.43% Allowance for originated loan and lease losses/total originated loans and leases     0.95%     0.97%     0.98%     0.99%     0.99%     0.95% Allowance/nonperforming loans and leases     146.74%     133.18%     139.36%     145.11%     128.43%     146.74% Net loan and lease losses (recoveries) annualized/total average loans and leases     0.05%     (0.07%)     0.04%     (0.03%)     0.04%     (0.00%)   Capital Adequacy (period-end)                                     Tier 1 capital / average assets *     8.82%     8.89%     8.92%     8.85%     8.75%     8.82% Total capital / risk-weighted assets *     13.03%     13.29%     13.46%     13.37%     13.60%     13.03% *Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework   Profitability                                     Return on average assets *     0.98%     1.05%     1.29%     0.97%     0.97%     1.07% Return on average equity *     10.63%     11.29%     13.79%     10.35%     10.16%     11.51% Net interest margin (TE) *     3.35%     3.35%     3.37%     3.45%     3.53%     3.38% * Quarterly ratios have been annualized   Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share                         Net income available to common shareholders   $ 13,854   $ 14,497   $ 17,390   $ 12,680   $ 12,689   $ 58,421 Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     229     189     234     182     150     834 Adjusted net income available to common shareholders     13,625     14,308     17,156     12,498     12,539     57,587 Gain on pension plan curtailment (net of tax)     0     0     (3,602)     0     0     (3,602) Net operating income (Non-GAAP)     13,625     14,308     13,554     12,498     12,539     54,349 Weighted average shares outstanding (diluted)     14,869,103     14,866,735     14,878,107     14,837,935     14,765,855     14,863,026 Adjusted diluted earnings per share (Non-GAAP) (9)   $ 0.92   $ 0.96   $ 0.91   $ 0.84   $ 0.85   $ 3.66   Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets                         Total Common equity   $ 515,014   $ 516,409   $ 503,877   $ 502,811   $ 488,131   $ 515,014 Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347 Tangible common equity     411,667     412,060     399,032     397,467     382,279     411,667 Total assets     5,689,995     5,594,718     5,436,136     5,357,533     5,269,561     5,689,995 Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347 Tangible assets     5,586,648     5,490,369     5,331,291     5,252,189     5,163,709     5,586,648 Tangible common equity / tangible assets (Non-GAAP)     7.37%     7.51%     7.48%     7.57%     7.40%     7.37%                                     Non-GAAP Disclosure - Return on Average   Quarter-Ended   Year-Ended Tangible Common Equity     Dec-15     Sep-15     Jun-15     Mar-15     Dec-14     Dec-15 Net income available to common shareholders   $ 13,854   $ 14,497   $ 17,390   $ 12,680   $ 12,689   $ 58,421 Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     229     189     234     182     150     834 Adjusted net income available to common shareholders     13,625     14,308     17,156     12,498     12,539     57,587 Gain on pension plan curtailment (net of tax)     0     0     (3,602)     0     0     (3,602) Net operating income (Non-GAAP)     13,625     14,308     13,554     12,498     12,539     54,349 Amortization of intangibles (net of tax)     306     298     300     304     315     1,208 Adjusted net operating income (Non-GAAP)     13,931     14,606     13,854     12,802     12,854     55,557 Average common equity     516,988     507,984     504,166     495,579     493,986     506,243 Less: Average goodwill and intangibles (10)     103,963     104,633     105,130     105,644     106,151     104,837 Average tangible common equity capital     413,025     403,351     399,036     389,935     387,835     401,406 Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)     13.39%     14.37%     13.93%     13.32%     13.15%     14.07%   Non-GAAP Disclosure - Tangible Book Value Per Share       Total common equity   $ 515,014   $ 516,409   $ 503,877   $ 502,811   $ 488,131   $ 515,014 Less: Goodwill and intangibles (10)     103,347     104,349     104,845     105,344     105,852     103,347 Tangible common equity     411,667     412,060     399,032     397,467     382,279     411,667 Ending shares outstanding     14,979,684     14,905,576     14,942,107     14,962,079     14,895,444     14,979,684 Tangible book value per share (Non-GAAP)   $ 27.48   $ 27.64   $ 26.71   $ 26.56   $ 25.66   $ 27.48                     Non-GAAP Disclosure - YTD adjusted diluted earnings per share         Dec-15   Dec-14 Net income available to common shareholders   $ 58,421   $ 52,041 Less: Dividends and undistributed earnings allocated to unvested restricted stock awards     834     503 Adjusted net income available to common shareholders     57,587     51,538 Gain on pension plan curtailment     (3,602)     0 Net operating income (Non-GAAP)     53,985     51,538 Weighted average shares outstanding (diluted)     14,863,026     14,789,624 Adjusted diluted earnings per share (Non-GAAP)   $ 3.63   $ 3.48      

(1)

Federal Reserve peer ratio as of September 30, 2015, 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, 2014.

(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.

 

View source version on businesswire.com: http://www.businesswire.com/news/home/20160129005144/en/

Tompkins Financial CorporationStephen S. Romaine, 888-503-5753President & CEOorFrancis M. Fetsko, 888-503-5753Executive VP, CFO & COO