TMP Tompkins Financial Corporation

Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported net income of $22.1 million for the second quarter of 2018, an increase of 30.3% from the $16.9 million reported for the same period in 2017. Year-to-date net income was $42.5 million, an increase of $9.9 million, or 30.2% over the same period in 2017.

Diluted earnings per share were $1.43 for the second quarter of 2018, up 28.8% over the second quarter of 2017. For the year-to-date period ended June 30, 2018, diluted earnings per share were $2.76, up 29.6% over the same period in 2017.

President and CEO, Stephen S. Romaine said “We are extremely pleased with our excellent results through the first half of 2018. The second quarter also marked a significant milestone for our Company. In May of this year, we moved our Corporate headquarters to a new building located across the street from our former headquarters location in downtown Ithaca. The move has allowed us to consolidate staff, which were previously located in seven different locations, into a new, modern, and more efficient space. The move has been extremely well received by our employees, clients, and the local community."

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

• Diluted earnings per share for the quarter and year-to-date periods reflect the highest earnings in Company history for the respective periods.
• Quarterly results included certain unusual items that were primarily related to the move of our Corporate headquarters. These included approximately $2.9 million of gains related to sales of real estate and approximately $2.0 million of write downs associated with two leased properties that were recently vacated.
• Return on Average Equity was 15.13% for the second quarter and 14.78% for the year-to-date period, which reflect the highest returns in more than 10 years.
• Total loans of $4.8 billion were up 8.4% over the same period in 2017, and up 2.6% over December 31, 2017.

NET INTEREST INCOME

Net interest income of $52.7 million for the second quarter of 2018 increased by $2.4 million, or 4.8% compared to the same period in 2017. For the year-to-date period, net interest income was $105.4 million, up $7.1 million, or 7.2% from the same six-month period in 2017.

Net interest income benefited from growth in average loans and noninterest bearing deposits. Average loans were up $414.0 million, or 9.6% in the first six months of 2018, compared to the same six month period in 2017. Average noninterest bearing deposits were up $140.0 million, or 11.6% in the first six months of 2018, versus the same period in 2017. The net interest margin for the second quarter of 2018 was 3.36%, compared to 3.45% reported for the same period in 2017, and 3.42% for the quarter ended March 31, 2018. The decline in margin is largely due to loan growth out-pacing deposit growth, and the recent increases in market interest rates that have resulted in increased funding costs.

NONINTEREST INCOME

Noninterest income represented 28.6% of total revenues in the second quarter of 2018, compared to 25.8% in the same period in 2017, and 27.0% for the first six months of 2018. Noninterest income of $21.2 million was up 21.2% compared to the same period last year. Fee income associated with insurance, wealth management, deposit services, and card services for the second quarter of 2018 were up a combined $406,000 or 2.6% over the same period in 2017. The second quarter of 2018 also included a gain on sale of two properties totaling $2.9 million. The sale of these properties is related to the completion of the new Company headquarters building in the second quarter of 2018.

NONINTEREST EXPENSE

Noninterest expense was $45.0 million for the second quarter of 2018, up $3.4 million, or 8.2%, over the second quarter of 2017. For the year-to-date period, noninterest expense was $88.7 million, up $5.8 million, or 7.0%, from the same period in 2017. The increase in noninterest expense for both the second quarter and year-to-date periods included normal annual increases in salaries and wages. Noninterest expense for the second quarter of 2018 also included a $2.0 million write-down related to two leases on recently vacated space.

INCOME TAX EXPENSE

The Company's effective tax rate was 20.7% in the second quarter of 2018, compared to 32.7% for the same period in 2017. The decrease is a direct result of The Tax Cuts and Jobs Act of 2017, which reduced the Federal statutory tax rate from 35% in 2017, to 21% in 2018.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2018. Nonperforming assets represented 0.42% of total assets at June 30, 2018, compared to 0.38% at December 31, 2017, and 0.36% at June 30, 2017. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.61%.

Provision for loan and lease losses was $1.0 million for the second quarter of 2018 and 2017. Net charge-offs for the second quarter of 2018 were $31,000 compared to net recoveries of $15,000 reported in the second quarter of 2017.

The Company’s allowance for originated loan and lease losses totaled $41.2 million at June 30, 2018, and represented 0.91% of total originated loans and leases at June 30, 2018, unchanged from both the most recent prior quarter, and June 30, 2017. The total allowance represented 158.08% of total nonperforming loans and leases at June 30, 2018, compared to 172.84% at December 31, 2017, and 178.59% at June 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 7.36% at June 30, 2018, improved from the 7.29% reported for the most recent prior quarter ended March 31, 2018, and down from 7.50% at June 30, 2017.

ABOUT TOMPKINS FINANCIAL CORPORATION

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

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

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

The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.

  TOMPKINS FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (In thousands, except share and per share data) (Unaudited)     As of     As of ASSETS 06/30/2018 12/31/2017     Cash and noninterest bearing balances due from banks $ 80,702 $ 77,688 Interest bearing balances due from banks       1,971         6,615   Cash and Cash Equivalents 82,673 84,303   Available-for-sale securities, at fair value (amortized cost of $1,385,805 at June 30, 2018 and $1,408,996 at December 31, 2017) 1,343,690 1,391,863 Held-to-maturity securities, at amortized cost (fair value of $137,221 at June 30, 2018 and $140,315 at December 31, 2017) 139,413 139,216 Equity securities, at fair value (amortized cost $1,000,000 at June 30, 2018 and $1,000,000 at December 31, 2017) 888 913 Originated loans and leases, net of unearned income and deferred costs and fees (2) 4,507,006 4,358,543 Acquired loans (3) 284,187 310,577 Less: Allowance for loan and lease losses       41,225         39,771   Net Loans and Leases 4,749,968 4,629,349   Federal Home Loan Bank and other stock 58,770 50,498 Bank premises and equipment, net 93,994 86,995 Corporate owned life insurance 81,126 80,106 Goodwill 92,283 92,291 Other intangible assets, net 8,342 9,263 Accrued interest and other assets       94,653         83,494     Total Assets     $ 6,745,800       $ 6,648,290     LIABILITIES Deposits: Interest bearing: Checking, savings and money market 2,749,782 2,651,632 Time 635,004 748,250 Noninterest bearing       1,407,443         1,437,925   Total Deposits 4,792,229 4,837,807   Federal funds purchased and securities sold under agreements to repurchase 52,042 75,177 Other borrowings 1,229,956 1,071,742 Trust preferred debentures 16,777 16,691 Other liabilities       64,147         70,671     Total Liabilities     $ 6,155,151       $ 6,072,088     EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,314,340 at June 30, 2018; and 15,301,524 at December 31, 2017 1,532 1,530 Additional paid-in capital 367,121 364,031 Retained earnings 294,553 265,007 Accumulated other comprehensive loss (69,436 ) (51,296 ) Treasury stock, at cost – 118,554 shares at June 30,2018, and 120,805 shares at December 31, 2017 (4,597 ) (4,492 )   Total Tompkins Financial Corporation Shareholders’ Equity 589,173 574,780 Noncontrolling interests       1,476         1,422     Total Equity     $ 590,649       $ 576,202     Total Liabilities and Equity     $ 6,745,800       $ 6,648,290             TOMPKINS FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME       Three Months Ended Six Months Ended (In thousands, except per share data) (Unaudited) 06/30/2018     06/30/2017       06/30/2018       06/30/2017 INTEREST AND DIVIDEND INCOME Loans $ 52,757 $ 47,357 $ 103,651 $ 92,308 Due from banks 7 4 13 6 Available-for-sale securities 7,729 7,647 15,373 14,969 Held-to-maturity securities 854 870 1,712 1,748 Federal Home Loan Bank and other stock         796         464         1,534         932 Total Interest and Dividend Income         62,143         56,342         122,283         109,963 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 540 466 525 907 Other deposits 3,087 2,482 5,870 4,829 Federal funds purchased and securities sold under agreements to repurchase 34 43 80 151 Trust preferred debentures 306 256 586 623 Other borrowings         5,462         2,794         9,821         5,118 Total Interest Expense         9,429         6,041         16,882         11,628 Net Interest Income         52,714         50,301         105,401         98,335 Less: Provision for loan and lease losses         1,045         976         1,612         1,745 Net Interest Income After Provision for Loan and Lease Losses         51,669         49,325         103,789         96,590 NONINTEREST INCOME Insurance commissions and fees 7,387 7,092 14,781 14,210 Investment services income 4,022 3,891 8,268 7,682 Service charges on deposit accounts 2,080 2,045 4,212 4,212 Card services income 2,621 2,676 4,767 4,685 Other income 4,898 1,746 6,686 3,901 Gain on sale of available-for-sale securities         150         0         274         0 Total Noninterest Income         21,158         17,450         38,988         34,690 NONINTEREST EXPENSE Salaries and wages 21,377 20,480 42,375 40,116 Pension and other employee benefits 5,183 4,989 10,559 10,624 Net occupancy expense of premises 3,170 3,390 6,816 6,901 Furniture and fixture expense 1,673 1,637 3,648 3,234 FDIC insurance 704 617 1,371 1,155 Amortization of intangible assets 443 485 894 978 Other operating expense         12,435         9,970         23,043         19,928 Total Noninterest Expenses         44,985         41,568         88,706         82,936 Income Before Income Tax Expense         27,842         25,207         54,071         48,344 Income Tax Expense         5,751         8,248         11,512         15,637 Net Income attributable to noncontrolling interests and Tompkins Financial Corporation         22,091         16,959         42,559         32,707 Less: Net income attributable to noncontrolling interests         32         33         64         65 Net Income Attributable to Tompkins Financial Corporation       $ 22,059       $ 16,926       $ 42,495       $ 32,642 Basic Earnings Per Share $ 1.44 $ 1.11 $ 2.78 $ 2.15 Diluted Earnings Per Share       $ 1.43       $ 1.11       $ 2.76       $ 2.13     Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)                                           Quarter Ended YTD Period Ended YTD Period Ended               June 30, 2018       June 30, 2018       June 30, 2017 Average Average Average Balance Average Balance Average Balance Average (Dollar amounts in thousands)         (QTD)     Interest     Yield/ Rate       (YTD)     Interest     Yield/ Rate       (YTD)     Interest     Yield/ Rate ASSETS Interest-earning assets Interest-bearing balances due from banks $ 1,286 $ 7 2.18 % $ 1,922 $ 14 1.47 % $ 3,572

$

6 0.34 % Securities (4) U.S. Government securities 1,442,384 8,042 2.24 % 1,448,274 15,997 2.23 % 1,477,512 15,621 2.13 % State and municipal (5) 97,189 628 2.59 % 98,470 1,271 2.60 % 101,598 1,701 3.38 % Other securities (5)   3,544       39     4.41 %       3,558     74     4.19 %       3,608     64     3.58 % Total securities 1,543,117 8,709 2.26 % 1,550,302 17,342 2.26 % 1,582,718 17,386 2.22 % FHLBNY and FRB stock 53,967 796 5.92 % 51,750 1,534 5.98 % 39,426 932 4.77 %   Total loans and leases, net of unearned income (5)(6)   4,750,192       53,076     4.48 %       4,719,312     104,304     4.46 %       4,305,304     93,772     4.39 % Total interest-earning assets   6,348,562       62,588     3.95 %       6,323,286     123,194     3.93 %       5,931,020     112,096     3.81 %   Other assets 341,087 348,024 354,842   Total assets       $ 6,689,649                   $ 6,671,310                 $ 6,285,862               LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings & money market $ 2,832,800 1,940 0.27 % $ 2,814,601 3,587 0.26 % $ 2,680,639 2,265 0.17 % Time deposits   661,502       1,687       1.02 %       689,404       2,808       0.82 %       867,571       3,471       0.81 % Total interest-bearing deposits 3,494,302 3,627 0.42 % 3,504,005 6,395 0.37 % 3,548,210 5,736 0.33 %   Federal funds purchased & securities sold under agreements to repurchase 54,246 34 0.25 % 64,649 80 0.25 % 69,560 151 0.44 % Other borrowings 1,143,825 5,462 1.92 % 1,098,818 9,821 1.80 % 813,477 5,118 1.27 % Trust preferred debentures   16,749       306     7.33 %       16,728     586     7.06 %       20,063     623     6.26 % Total interest-bearing liabilities

 

4,709,122 9,429 0.80 % 4,684,200 16,882 0.73 % 4,451,310 11,628 0.53 %   Non-interest bearing deposits 1,337,311 1,344,270 1,204,272 Accrued expenses and other liabilities 58,265   62,856 65,915 Total liabilities

 

6,104,698 6,091,326 5,721,497   Tompkins Financial Corporation Shareholders’ equity 583,492 578,541 562,896 Noncontrolling interest 1,459   1,443 1,469 Total equity 584,951 579,984 564,365   Total liabilities and equity

$

6,689,649   $ 6,671,310 $ 6,285,862 Interest rate spread   3.15 %   3.20 %   3.28 % Net interest income/margin on earning assets 53,159 3.36 % 106,312 3.39 % 100,468 3.42 %   Tax equivalent adjustments (445) (911) (2,133)   Net interest income per consolidated financial statements               $ 52,714                     $ 105,401                     $ 98,335                                   Tompkins Financial Corporation - Summary Financial Data (Unaudited)   (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet      

Jun-18

   

Mar-18

   

Dec-17

   

Sep-17

   

Jun-17

   

Dec-17

Securities       $ 1,483,991     $ 1,510,795     $ 1,531,991     $ 1,546,199     $ 1,564,865     $ 1,531,991

Originated loans and leases, net of unearnedincome and deferred costs and fees (2)

        4,507,006       4,408,081       4,358,543       4,167,254       4,070,755       4,358,543 Acquired loans and leases (3)         284,187       296,765       310,577       323,259       347,841       310,577 Allowance for loan and lease losses         41,225       40,211       39,771       38,038       37,157       39,771 Total assets         6,745,800       6,648,128       6,648,290       6,524,060       6,415,012       6,648,290 Total deposits         4,792,229       4,929,903       4,837,807       4,943,944       4,750,722       4,837,807

Federal funds purchased and securities sold underagreements to repurchase

        52,042       69,131       75,177       73,874       50,360       75,177 Other borrowings         1,229,956       995,074       1,071,742       834,574       952,035       1,071,742 Trust preferred debentures         16,777       16,734       16,691       16,648       16,605       16,691 Total common equity         589,173       577,967       574,780       588,349       575,428       574,780 Total equity         590,649       579,411       576,202       589,868       576,915       576,202     Average Balance Sheet Average earning assets       $ 6,348,562     $ 6,297,727     $ 6,159,396     $ 6,072,269     $ 5,970,653     $ 6,024,186 Average assets         6,689,649       6,652,763       6,552,414       6,430,497       6,329,847       6,389,504 Average interest-bearing liabilities         4,709,122       4,658,998       4,500,649       4,463,606       4,474,860       4,466,846 Average equity         584,951       574,963       593,956       586,671       572,741       577,446   Share data Weighted average shares outstanding (basic)      

 

15,038,061

   

 

15,013,478

   

 

14,988,542

   

 

14,966,231

   

 

14,944,934

   

 

14,950,432

Weighted average shares outstanding (diluted)      

 

15,135,970

   

 

15,112,518

   

 

15,103,906

   

 

15,078,555

   

 

15,066,861

   

 

15,073,255

Period-end shares outstanding      

 

15,278,430

   

 

15,285,335

   

 

15,265,614

   

 

15,202,444

   

 

15,189,453

   

 

15,265,614

Common equity book value per share       $ 38.56     $ 37.81     $ 37.65     $

38.70

    $ 37.88     $ 37.65 Tangible book value per share (Non-GAAP)       $ 32.02     $ 31.24     $ 31.04     $ 32.03     $ 31.18     $ 31.04   Income Statement Net interest income       $ 52,714     $ 52,687     $ 51,969     $ 51,000     $ 50,301     $ 201,304 Provision for loan/lease losses         1,045       567       2,014       402       976       4,161 Noninterest income         21,158       17,830       17,312       17,202       17,450       69,204 Noninterest expense         44,985       43,721       46,286       41,883       41,568       171,105 Income tax expense         5,751       5,761       18,493       8,491       8,248       42,620 Net income attributable to Tompkins Financial Corporation         22,059       20,436       2,457       17,394       16,926       52,494 Noncontrolling interests         32       32       31       32       33       128 Basic earnings per share (8)       $ 1.44     $ 1.34     $ 0.16     $ 1.14     $ 1.11     $ 3.46 Diluted earnings per share (8)       $ 1.43     $ 1.33     $ 0.16     $ 1.14     $ 1.11     $ 3.43   Nonperforming Assets Originated nonaccrual loans and leases       $ 19,082     $ 18,429     $ 16,253     $ 15,667     $ 14,284     $ 16,253 Acquired nonaccrual loans and leases         2,673       3,352       3,264       3,152       2,903       3,264 Originated loans and leases 90 days past due and accruing         0       0       44       0       639       44 Troubled debt restructurings not included above         4,324       3,455       3,449       3,541       2,980       3,449 Total nonperforming loans and leases         26,079       25,236       23,010       22,360       20,806       23,010 OREO         2,233       2,047       2,047       2,030       2,331       2,047 Total nonperforming assets       $ 28,312     $ 27,283     $ 25,057     $ 24,390     $ 23,137     $ 25,057                     Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended     Year-Ended Delinquency - Originated loan and lease portfolio      

Jun-18

   

Mar-18

   

Dec-17

   

Sep-17

   

Jun-17

   

Dec-17

Loans and leases 30-89 days past due and     accruing (2)       $ 5,875     $ 6,513     $ 6,791     $ 5,567     $ 6,188     $ 6,791 Loans and leases 90 days past due and accruing (2)         0       0       44       0       639       44 Total originated loans and leases past due and accruing (2)         5,875       6,513       6,835       5,567       6,827       6,835     Delinquency - Acquired loan and lease portfolio Loans 30-89 days past due and accruing (3)(7)       $ 1,108     $ 823     $ 1,256     $ 2,857     $ 751     $ 1,256 Loans 90 days or more past due         1,110       1,077       1,146       1,306       2,581       1,146 Total acquired loans and leases past due and accruing         2,218       1,900       2,402       4,163       3,332       2,402 Total loans and leases past due and accruing       $ 8,093     $ 8,413     $ 9,237     $ 9,730     $ 10,159     $ 9,237   Allowance for Loan Losses - Originated loan and lease portfolio Balance at beginning of period       $ 40,107     $ 39,686     $ 37,903     $ 36,960     $ 35,915     $ 35,598 Provision for loan and lease losses         1,035       608       1,849       931       846       4,428 Net loan and lease (recoveries) charge-offs         31       187       66      

(12)

     

(199)

      140 Allowance for loan and lease losses (originated loan portfolio) - balance at end of period       $ 41,111     $ 40,107     $ 39,686     $ 37,903     $ 36,960     $ 39,686   Allowance for Loan Losses - Acquired loan and lease portfolio Balance at beginning of period       $ 104     $ 85     $ 135     $ 197     $ 251     $ 157 Provision (credit) for loan and lease losses         10      

(41)

      165      

(529)

      130      

(67)

Net loan and lease (recoveries) charge-offs         0      

(60)

      215      

(467)

      184       5 Allowance for loan and lease losses (acquired loan portfolio) - balance at end of period         114       104       85       135       197       85                                                     Total allowance for loan and lease losses       $ 41,225     $ 40,211     $ 39,771     $ 38,038     $ 37,157     $ 39,771   Loan Classification - Originated Portfolio Special Mention       $ 44,068     $ 34,546     $ 46,074     $ 50,423     $ 38,488     $ 46,074 Substandard         41,572       35,746       20,584       20,532       19,532       20,584 Loan Classification - Acquired Portfolio Special Mention         469       476       525       539       547       525 Substandard         3,180       3,468       5,355       8,193       8,796       5,355 Loan Classifications - Total Portfolio Special Mention         44,537       35,022       46,599       50,962       39,035       46,599 Substandard         44,752       39,214       25,939       28,725       28,328       25,939   Ratio Analysis   Credit Quality

Nonperforming loans and leases/total loans and leases (7)

       

0.54%

     

0.54%

     

0.49%

     

0.50%

     

0.47%

     

0.49%

Nonperforming assets/total assets        

0.42%

     

0.41%

     

0.38%

     

0.37%

     

0.36%

     

0.38%

Allowance for originated loan and lease losses/totaloriginated loans and leases

       

0.91%

     

0.91%

     

0.91%

     

0.91%

     

0.91%

     

0.91%

Allowance/nonperforming loans and leases        

158.08%

     

159.34%

     

172.84%

     

170.12%

     

178.59%

     

172.84%

Net loan and lease losses (recoveries)annualized/total average loans and leases

       

0.00%

     

0.01%

     

0.02%

     

(0.04)%

     

0.00%

     

0.00%

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

Quarter-Ended

    Year-Ended Capital Adequacy (period-end)    

Jun-18

   

Mar-18

   

Dec-17

   

Sep-17

   

Jun-17

   

Dec-17

Tangible common equity/tangible assets       7.36 %       7.29 %       7.24 %       7.58 %      

7.50

%       7.24%             Profitability Return on average assets *       1.32 %       1.25 %       0.15 %       1.07 %       1.07 %       0.82% Return on average equity *       15.13 %       14.41 %       1.64 %       11.77 %       11.85 %       9.09% Net interest margin (TE) *       3.36 %       3.42 %       3.42 %      

3.40

%       3.45 %       3.41% * Quarterly ratios have been annualized  

Non-GAAP Measures

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

                          Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share Quarter-Ended     Year-Ended        

Jun-18

   

Mar-18

   

Dec-17

   

Sep-17

   

Jun-17

   

Dec-17

Net income available to common shareholders       $ 22,059     $ 20,436     $ 2,457     $ 17,394     $ 16,926     $ 52,494

Income attributable to unvested stock-basedcompensation awards

        359       351       26       266       266       818 Net earnings allocated to common shareholders         21,700       20,085       2,431       17,128       16,660       51,676 Remeasurement of net deferred taxes         0       0       14,944       0       0       14,994 Gain on sale of real estate, net of tax         2,227       0       0       0       0       0 Write-down of impaired leases, net of tax        

(1,527)

      0       0       0       0       0 Net income (Non-GAAP)         21,000       20,085       17,375       17,128       16,660       66,620 Weighted average shares outstanding (diluted)      

 

15,135,970

   

 

15,112,518

   

 

15,103,906

   

 

15,078,555

   

 

15,066,861

   

 

15,073,255

Adjusted diluted earnings per share (Non-GAAP)       $ 1.39     $ 1.33     $ 1.15     $ 1.14     $ 1.11     $ 4.42   Non-GAAP Disclosure - Tangible Book Value Per Share Total common equity       $ 589,173     $ 577,967     $ 574,780     $ 588,349     $ 575,428     $ 574,780 Less: Goodwill and intangibles (9)         99,983       100,436       100,887       101,360       101,840       100,887 Tangible common equity         489,190       477,531       473,893       486,989       473,588       473,893 Ending shares outstanding      

 

15,278,430

   

 

15,285,335

   

 

15,265,614

   

 

15,202,444

   

 

15,189,453

   

 

15,265,614

Tangible book value per share (Non-GAAP)       $ 32.02     $ 31.24     $ 31.04     $ 32.03     $ 31.18     $ 31.04    

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

  Non-GAAP Disclosure - Year to date adjusted diluted earnings per share           Jun-18       Jun-17 Net income available to common shareholders       $ 42,495    

$

32,642 Income attributable to unvested stock-based compensation awards         706       527 Net earnings allocated to common shareholders         41,789       32,115 Gain on sale of real estate, net of tax         2,227       0 Write-down of impaired leases, net of tax         (1,527)       0 Net income (Non-GAAP)         41,089       32,115 Weighted average shares outstanding (diluted)         15,124,267       15,054,870 Adjusted diluted earnings per share (Non-GAAP)       $ 2.72     $ 2.13          

(1) Federal Reserve peer ratio as of March 31, 2018, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.(2) “Originated” equals loans and leases not included by definition in “acquired loans”.(3) “Acquired Loans and Leases” equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805.(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.(5) Interest income includes the tax effects of taxable-equivalent basis.(6) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2017.(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.(8) Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares(9) “Goodwill and intangibles” equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180720005029/en/

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