Tompkins Financial Corporation (NYSE American:TMP):
Tompkins Financial Corporation reported diluted earnings per
share of $1.44 for the second quarter of 2020, up 13.4% compared to
$1.27 reported in the second quarter of 2019. Net income for the
second quarter of 2020 was $21.4 million, compared to $19.4 million
reported for the same period in 2019.
For the year-to-date period ended June 30, 2020, diluted
earnings per share were $1.97, down 25.1% from the same period in
2019. Year-to-date net income was $29.4 million, down from $40.4
million, for the same period in 2019. Results for the 2020
year-to-date period were negatively impacted by economic stress
resulting from the COVID-19 pandemic, which contributed to the
$16.3 million provision for credit losses recognized during the
first quarter of 2020.
Mr. Romaine commented, "We are pleased to report strong
financial results for the quarter despite a very challenging
business climate. Although the longer term impact of the pandemic
and related economic conditions are still unknown, there have been
several recent positive trends noted with certain national economic
indicators, such as reduced levels of unemployment, improving
retail sales and improving consumer confidence. At Tompkins, we
have seen several positive trends as well, with very strong
mortgage application volumes in the second quarter, higher levels
of debit card spending, and favorable credit quality measures when
compared to last quarter. We are encouraged by some of these recent
favorable trends, though the recent rise in COVID-19 cases
nationally makes it clear that much uncertainty remains. We will
remain vigilant in monitoring risk trends as we navigate these
challenging times.”
SELECTED HIGHLIGHTS FOR THE SECOND QUARTER:
- Total loans of $5.4 billion were up $568 million, or 11.7% over
June 30, 2019. The increase over the prior year included $465.6
million of PPP loans funded during the second quarter of 2020.
- Total deposits of $6.4 billion increased by $1.4 billion, or
27.8% over June 30, 2019.
- Net interest margin was 3.45% for the second quarter of 2020,
up from 3.44% for the first quarter of 2020, and 3.43% for the
fourth quarter of 2019.
- The ratio of Total Capital to risk-weighted assets improved to
13.95%, up from 13.62% at March 31, 2020, and 13.53% at December
31, 2019.
NET INTEREST INCOME Net interest income was $56.4 million for
the second quarter of 2020, compared to $52.3 million reported for
the second quarter of 2019. For the year-to-date period, net
interest income was $109.3 million, an increase of $5.1 million or
4.9% from the same six-month period in 2019.
Net interest income benefited from growth in average loans.
Average loans were up $297.7 million, or 6.2% in the first six
months of 2020, compared to the same six month period in 2019. The
increase in average loans includes the benefit of $465.6 million of
loans originated under the Small Business Administration's ("SBA")
Paycheck Protection Program ("PPP") in the second quarter of 2020.
Asset yields were down 20 basis points compared to the first six
months of 2019, which reflects the impact of reductions in market
interest rates during the first six months of 2020, and the
addition of the lower yielding PPP loans originated in the second
quarter.
Average total deposits were up $778.1 million, or 15.7% in the
first six months of 2020, versus the same period in 2019. Average
noninterest deposits were up $251.3 billion or 18.7% in the first
six months of 2020, compared to the same period in 2019. Average
deposit balances benefited from $465.6 million of PPP loan
originations during the second quarter of 2020, the majority of
which were deposited in Tompkins checking accounts. The average
rate paid on interest-bearing deposit products in the first six
months of 2020 decreased by 21 basis points over the same period in
2019.
Net interest margin was 3.45% for the second quarter of 2020, up
compared to the 3.34% reported for the second quarter of 2019, and
3.44% for the first quarter of 2020. The improved net interest
margin year-over-year was largely driven by lower funding costs,
reflecting lower deposit rates and growth in deposit balances,
which were used to reduce higher cost other borrowing balances.
As a result of its participation in the SBA's PPP, in the second
quarter the Company recorded net deferred loan fees of $2.3
million, which are included in interest income.
NONINTEREST INCOME Noninterest income represented 24.8% of total
revenues in the first six months of 2020, as compared to 26.7% in
the same period in 2019. Noninterest income of $17.2 million for
the second quarter of 2020 was down 7.3% compared to the same
period in 2019. For the year-to-date period, noninterest income of
$36.1 million was down 4.7% from the same period in 2019. Total fee
based services in the second quarter of 2020 were $14.7 million,
down 10.5% compared to the same period in 2019. The reduction in
fee based income in 2020 is largely related to the pandemic-related
travel and business restrictions, which reduced card services and
service charge income. Other noninterest income for the second
quarter of 2020 included $691,000 related to gains on sales of
residential mortgage loans.
NONINTEREST EXPENSE Noninterest expense was $46.9 million for
the second quarter of 2020, up $818,000, or 1.8%, over the second
quarter of 2019. For the year-to-date period, noninterest expense
was $92.6 million, up $2.3 million, or 2.6%, from the same period
in 2019. The increase in noninterest expense for both the second
quarter and year-to-date periods was primarily attributable to
normal annual increases in salaries and wages. Other expense for
the second quarter and year-to-date period of 2020 included $1.2
million and $1.7 million, respectively, related to allowance for
credit losses for off-balance sheet exposures. Other expense during
the quarter also included a loss of $675,000 related to the pending
sale of real estate.
INCOME TAX EXPENSE The Company's effective tax rate was 20.5%
for the second quarter of 2020, compared to 19.6% for the same
period in 2019. The effective tax rate for the six months ended
June 30, 2020 was 20.2%, compared to 20.3% reported for the same
period in 2019.
ASSET QUALITY Asset quality trends remained strong in the second
quarter of 2020. Nonperforming assets represented 0.40% of total
assets at June 30, 2020, down from 0.47% at December 31, 2019.
Nonperforming asset levels continue to be below the most recent
Federal Reserve Board Peer Group Average1 of 0.49%.
Provision for credit losses in the second quarter of 2020 was a
negative provision of $348,000 compared to an expense of $601,000
for the same period in 2019. Provision expense for the six months
ended June 30, 2020 was $15.9 million, compared to $1.0 million for
the same period in 2019. The first quarter of 2020 included
provision expense of $16.3 million related to the impact of the
economic shutdown related to COVID-19 on economic forecasts and
other model assumptions relied upon by management in determining
the allowance. Net recoveries for the second quarter of 2020 were
$26,000 compared to net charge-offs of $139,000 reported in the
second quarter of 2019.
The allowance for credit losses represented 0.96% of total loans
and leases at June 30, 2020, compared to 1.06% at March 31, 2020,
0.81% at December 31, 2019, and 0.84% at June 30, 2019. The decline
in the ratio during the second quarter this year is largely due to
the increase in loan balances being largely driven by $465.6
million of PPP loans for which no reserves have been allocated. The
ratio of the allowance to total nonperforming loans and leases was
172.62% at June 30, 2020, improved from 126.90% at December 31,
2019, and 171.42% at June 30, 2019.
Overall credit quality has been supported by several initiatives
initiated by the Company in response to the pandemic. As previously
announced, Tompkins has initiated and participated in a number of
credit initiatives to support employees and customers who have been
impacted by the economic conditions associated with the COVID-19
pandemic. For non-executive employees affected by COVID-19, the
Company implemented a low interest loan program. The Company also
implemented a payment deferral program to assist both consumer and
business borrowers that may be experiencing financial hardship due
to COVID-19. Weekly deferral requests for the last week of June
were down 98% from peak levels the Company experienced in late
March. As of June 30, 2020, the Company had granted payment
deferral requests for approximately 3,900 loans totaling $2.3
billion to individuals and businesses. As of July 20, 2020, nearly
50% of loans that had received deferrals had begun making regular
payments.
As previously noted, the Company participated in the U.S. Small
Business Administration (SBA) Paycheck Protection Program (“PPP”).
This program provides borrower guarantees for lenders, as well as
loan forgiveness incentives for borrowers that utilize the loan
proceeds to cover employee compensation-related expenses and
certain other eligible business operating costs, all in accordance
with the rules and regulations established by the SBA. The Company
began accepting applications for PPP loans on April 3, 2020, and
had funded approximately 2,997 loans totaling about $465.6 million
as of June 30, 2020.
CAPITAL POSITION Capital ratios remained well above the
regulatory minimums for well capitalized institutions. The ratio of
Total capital to risk-weighted assets improved to 13.95% at June
30, 2020, up from 13.62% at March 31, 2020, and 13.53% at December
31, 2019. The ratio of Tier 1 capital to average assets was 8.79%
at June 30, 2020, down from 9.61% at December 31, 2019, and 9.25%
at June 30, 2019. The current period Tier 1 capital to average
assets was negatively impacted by $465.6 million of PPP loans
originated in the second quarter of 2020.
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 contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are neither historical facts
nor assurances of future performance. Examples of forward-looking
statements in this press release include, without limitation, those
regarding the novel coronavirus (COVID-19) and our plans in
response to the coronavirus. Forward-looking statements may be
identified by use of such words as "may", "will", "estimate",
"intend", "continue", "believe", "expect", "plan", or "anticipate",
and other similar words. Forward-looking statements are made based
on management’s expectations and beliefs concerning future events
impacting the Company and are subject to certain uncertainties and
factors relating to the Company’s operations and economic
environment, all of which are difficult to predict and many of
which are beyond the control of the Company, that could cause
actual results of the Company to differ materially from those
expressed and/or implied by forward-looking statements. The
following factors, in addition to those listed as Risk Factors in
Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2019, are among those that could cause actual results
to differ materially from the forward-looking statements: changes
in general economic, market and regulatory conditions; the severity
and duration of the coronavirus outbreak and the impact of the
outbreak (including the government’s response to the outbreak) on
economic and financial markets, potential regulatory actions, and
modifications to our operations, products, and services relating
thereto; disruptions in our and our customers’ operations and loss
of revenue due to pandemics, epidemics, widespread health
emergencies, government-imposed travel/business restrictions, or
outbreaks of infectious diseases such as the coronavirus, and the
associated adverse impact on our financial position, liquidity, and
our customers’ abilities to repay their obligations to us or
willingness to obtain financial services products from the Company;
the development of an interest rate environment that may adversely
affect the Company’s interest rate spread, other income or cash
flow anticipated from the Company’s operations, investment and/or
lending activities; changes in laws and regulations affecting
banks, bank holding companies and/or financial holding companies,
such as the Dodd-Frank Act, Basel III and the Economic Growth,
Regulatory Relief, and Consumer Protection Act; legislative and
regulatory changes in response to COVID-19 with which we and our
subsidiaries must comply, including the CARES Act and the rules and
regulations promulgated thereunder, and state and local government
mandates; technological developments and changes; the ability to
continue to introduce competitive new products and services on a
timely, cost-effective basis; governmental and public policy
changes, including environmental regulation; reliance on large
customers; and financial resources in the amounts, at the times and
on the terms required to support the Company’s future businesses.
The Company does not undertake any obligation to update its
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
06/30/2020
12/31/2019
Cash and noninterest bearing balances due
from banks
$
472,108
$
136,010
Interest bearing balances due from
banks
7,018
1,972
Cash and Cash
Equivalents
479,126
137,982
Available-for-sale debt securities, at
fair value (amortized cost of $1,301,271 at June 30, 2020 and
$1,293,239 at December 31, 2019)
1,335,153
1,298,587
Equity securities, at fair value
(amortized cost $934 at June 30, 2020 and $915 at December 31,
2019)
934
915
Total loans and leases, net of unearned
income and deferred costs and fees
5,424,285
4,917,550
Less: Allowance for credit losses
52,082
39,892
Net Loans and Leases
5,372,203
4,877,658
Federal Home Loan Bank and other stock
19,044
33,695
Bank premises and equipment, net
89,934
94,355
Corporate owned life insurance
83,606
82,961
Goodwill
92,447
92,447
Other intangible assets, net
5,500
6,223
Accrued interest and other assets
104,109
100,800
Total Assets
$
7,582,056
$
6,725,623
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,759,478
3,080,686
Time
699,166
675,014
Noninterest bearing
1,918,877
1,457,221
Total Deposits
6,377,521
5,212,921
Federal funds purchased and securities
sold under agreements to repurchase
50,889
60,346
Other borrowings
325,000
658,100
Trust preferred debentures
17,120
17,035
Other liabilities
113,497
114,167
Total Liabilities
$
6,884,027
$
6,062,569
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,950,368 at June 30, 2020;
and 15,014,499 at December 31, 2019
1,495
1,501
Additional paid-in capital
335,268
338,507
Retained earnings
386,025
370,477
Accumulated other comprehensive loss
(21,048
)
(43,564
)
Treasury stock, at cost – 119,092 shares
at June 30, 2020, and 123,956 shares at December 31, 2019
(5,187
)
(5,279
)
Total Tompkins Financial
Corporation Shareholders’ Equity
696,553
661,642
Noncontrolling interests
1,476
1,412
Total Equity
$
698,029
$
663,054
Total Liabilities and
Equity
$
7,582,056
$
6,725,623
TOMPKINS FINANCIAL
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
06/30/2020
06/30/2019
06/30/2020
06/30/2019
INTEREST AND DIVIDEND INCOME
Loans
$
56,133
$
56,740
$
111,747
$
112,064
Due from banks
1
$
10
7
$
20
Available-for-sale debt securities
6,922
$
7,686
14,066
$
15,544
Held-to-maturity securities
0
$
863
0
$
1,721
Federal Home Loan Bank and other stock
389
$
794
824
$
1,672
Total Interest and Dividend
Income
63,445
$
66,093
126,644
$
131,021
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
860
774
1,703
$
1,360
Other deposits
3,917
6,816
10,272
$
12,827
Federal funds purchased and securities
sold under agreements to repurchase
21
33
57
$
77
Trust preferred debentures
253
327
542
$
656
Other borrowings
2,028
5,825
4,735
$
11,869
Total Interest Expense
7,079
13,775
17,309
$
26,789
Net Interest Income
56,366
52,318
109,335
$
104,232
Less: Provision for credit loss
expense
(348
)
601
15,946
$
1,046
Net Interest Income After
Provision for Credit Loss Expense
56,714
51,717
93,389
$
103,186
NONINTEREST INCOME
Insurance commissions and fees
7,255
7,752
15,300
$
15,797
Investment services income
3,920
3,907
8,122
$
7,991
Service charges on deposit accounts
1,248
2,021
3,231
$
4,019
Card services income
2,283
2,750
4,466
$
5,540
Other income
2,466
1,806
4,570
$
4,284
Net gain on securities transactions
5
284
448
$
296
Total Noninterest Income
17,177
18,520
36,137
$
37,927
NONINTEREST EXPENSE
Salaries and wages
23,037
22,088
45,531
$
43,189
Other employee benefits
5,886
5,662
11,570
$
11,273
Net occupancy expense of premises
3,040
3,258
6,368
$
6,859
Furniture and fixture expense
1,888
1,996
3,873
$
3,975
Amortization of intangible assets
375
418
749
$
830
Other operating expense
12,662
12,648
24,537
$
24,153
Total Noninterest Expenses
46,888
46,070
92,628
$
90,279
Income Before Income Tax
Expense
27,003
24,167
36,898
$
50,834
Income Tax Expense
5,540
4,743
7,449
$
10,338
Net Income Attributable to
Noncontrolling Interests and Tompkins Financial Corporation
21,463
19,424
29,449
$
40,496
Less: Net Income Attributable to
Noncontrolling Interests
32
32
69
$
64
Net Income Attributable to
Tompkins Financial Corporation
$
21,431
19,392
$
29,380
$
40,432
Basic Earnings Per Share
$
1.44
$
1.27
$
1.97
$
2.64
Diluted Earnings Per Share
$
1.44
$
1.27
$
1.97
$
2.63
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Year to Date Period
Ended
Year to Date Period
Ended
June 30, 2020
June 30, 2020
June 30, 2019
Average
Average
Average
Balance
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
Quarter Ended
Interest
Yield/ Rate
Year Ended
Interest
Yield/ Rate
Year Ended
Interest
Yield/ Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
4,541
$
1
0.09
%
$
3,033
$
7
0.46
%
$
2,232
$
20
1.81
%
Securities (2)
U.S. Government securities
1,199,999
6,298
2.11
%
1,197,376
12,874
2.16
%
1,399,542
16,168
2.33
%
State and municipal (3)
109,621
743
2.73
%
103,550
1,409
2.74
%
93,872
1,264
2.72
%
Other securities (3)
3,433
32
3.75
%
3,428
68
3.99
%
3,416
81
4.78
%
Total securities
1,313,053
7,073
2.17
%
1,304,354
14,351
2.21
%
1,496,830
17,513
2.36
%
FHLBNY and other stock
21,691
389
7.21
%
24,124
824
6.87
%
47,349
1,672
7.12
%
Total loans and leases, net of unearned
income (3)(4)
5,276,794
56,441
4.30
%
5,095,414
112,348
4.43
%
4,797,709
112,636
4.73
%
Total interest-earning assets
6,616,079
63,904
3.89
%
6,426,925
127,530
3.99
%
6,344,120
131,841
4.19
%
Other assets
797,866
616,521
398,762
Total assets
$
7,413,945
$
7,043,446
$
6,742,882
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings &
money market
$
3,660,190
1,935
0.21
%
$
3,436,366
6,301
0.37
%
$
2,943,765
9,441
0.65
%
Time deposits
704,460
2,842
1.62
%
692,354
5,674
1.65
%
658,242
4,746
1.45
%
Total interest-bearing deposits
4,364,650
4,777
0.44
%
4,128,720
11,975
0.58
%
3,602,007
14,187
0.79
%
Federal funds purchased & securities
sold under
agreements to repurchase
52,464
21
0.16
%
57,996
57
0.20
%
63,451
77
0.24
%
Other borrowings
391,547
2,028
2.08
%
444,988
4,735
2.14
%
971,119
11,869
2.46
%
Trust preferred debentures
17,092
253
5.95
%
17,071
542
6.38
%
16,900
656
7.83
%
Total interest-bearing
liabilities
4,825,753
7,079
0.59
%
4,648,775
17,309
0.75
%
4,653,477
26,789
1.16
%
Non-interest bearing deposits
1,788,108
1,598,884
1,347,538
Accrued expenses and other liabilities
109,609
111,141
101,409
Total liabilities
6,723,470
6,358,800
6,102,424
Tompkins Financial Corporation
Shareholders’ equity
689,018
683,206
639,015
Noncontrolling interest
1,457
1,440
1,443
Total equity
690,475
684,646
640,458
Total liabilities and equity
$
7,413,945
$
7,043,446
$
6,742,882
Interest rate spread
3.30
%
3.24
%
3.03
%
Net interest income/margin on earning
assets
56,825
3.45
%
110,221
3.45
%
105,052
3.34
%
Tax equivalent adjustments
(459
)
(886
)
(820
)
Net interest income per consolidated
financial statements
$
56,366
$
109,335
$
104,232
Tompkins Financial Corporation - Summary Financial Data
(Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Jun-20
Mar-20
Dec-19
Sep-19
Jun-19
Dec-19
Securities
$
1,336,087
$
1,353,567
$
1,299,502
$
1,282,026
$
1,330,719
$
1,299,502
Total Loans
5,424,285
4,937,822
4,917,550
4,857,073
4,855,802
4,917,550
Allowance for credit losses
52,082
52,404
39,892
41,371
40,790
39,892
Total assets
7,582,056
6,743,114
6,725,623
6,627,982
6,654,390
6,725,623
Total deposits
6,377,521
5,409,363
5,212,921
5,369,990
4,988,897
5,212,921
Federal funds purchased and securities
sold under agreements to repurchase
50,889
68,993
60,346
50,541
63,978
60,346
Other borrowings
325,000
457,983
658,100
429,000
824,562
658,100
Trust preferred debentures
17,120
17,078
17,035
16,992
16,949
17,035
Total common equity
696,553
681,153
661,642
658,358
656,201
661,642
Total equity
698,029
682,597
663,054
659,865
657,677
663,054
Average Balance Sheet
Average earning assets
$
6,616,079
$
6,237,773
$
6,188,442
$
6,203,078
$
6,337,983
$
6,268,440
Average assets
7,413,945
6,672,948
6,613,202
6,621,412
6,742,409
6,679,578
Average interest-bearing liabilities
4,825,753
4,471,797
4,374,572
4,415,079
4,638,249
4,523,088
Average equity
690,475
678,817
664,441
659,650
650,079
651,341
Share data
Weighted average shares outstanding
(basic)
14,681,956
14,718,948
14,726,023
14,827,114
15,019,710
14,907,057
Weighted average shares outstanding
(diluted)
14,714,848
14,774,269
14,790,503
14,887,626
15,085,945
14,973,951
Period-end shares outstanding
14,914,458
14,907,947
14,978,589
14,975,750
15,160,719
14,978,589
Common equity book value per share
$
46.70
$
45.69
$
44.17
$
43.96
$
43.28
$
44.17
Tangible book value per share
(Non-GAAP)**
$
40.19
$
39.15
$
37.64
$
37.40
$
36.77
$
37.64
** See "Non-GAAP measures" below for a
discussion of non-GAAP financial measures and a reconciliation of
non-GAAP financial measures to the most directly comparable
financial measures presented in accordance with GAAP.
Income Statement
Net interest income
$
56,366
$
52,969
$
53,240
$
53,156
$
52,318
$
210,628
Provision (credit) for credit loss
expense
(348)
16,294
(1,000)
1,320
601
1,366
Noninterest income
17,177
18,960
17,972
19,534
18,520
75,433
Noninterest expense
46,888
45,740
45,900
45,655
46,070
181,834
Income tax expense
5,540
1,909
5,200
5,478
4,743
21,016
Net income attributable to Tompkins
Financial Corporation
21,431
7,949
21,080
20,206
19,392
81,718
Noncontrolling interests
32
37
32
31
32
127
Basic earnings per share (5)
$
1.44
$
0.53
$
1.41
$
1.34
$
1.27
$
5.39
Diluted earnings per share (5)
$
1.44
$
0.53
$
1.40
$
1.34
$
1.27
$
5.37
Nonperforming Assets
Nonaccrual loans and leases
$
23,183
$
23,556
$
24,281
$
23,568
$
18,906
$
24,281
Loans and leases 90 days past due and
accruing
0
0
0
0
0
0
Troubled debt restructuring not included
above
6,988
7,137
7,154
6,528
4,889
7,154
Total nonperforming loans and leases
30,171
30,693
31,435
30,096
23,795
31,435
OREO
274
466
428
888
2,229
428
Total nonperforming assets
$
30,445
$
31,159
$
31,863
$
30,984
$
26,024
$
31,863
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease
portfolio
Jun-20
Mar-20
Dec-19
Sep-19
Jun-19
Dec-19
Loans and leases 30-89 days past due and
accruing
$
8,352
$
9,328
$
3,724
$
3,519
$
4,376
$
3,724
Loans and leases 90 days past due and
accruing
0
0
794
1,219
1,229
794
Total loans and leases past due and
accruing
8,352
9,328
4,518
4,738
5,605
4,518
Allowance for Credit Losses*
Balance at beginning of period
$
52,404
$
39,892
$
41,371
$
40,790
$
40,328
$
43,410
Impact of adopting ASC 326
0
(2,534
)
0
0
0
0
Provision (credit) for credit losses
(348
)
16,294
(1,000
)
1,320
601
1,366
Net loan and lease (recoveries)
charge-offs
(26
)
1,248
479
739
139
4,884
Allowance for credit losses at end of
period
$
52,082
$
52,404
$
39,892
$
41,371
$
40,790
$
39,892
*CECL was adopted January 1, 2020. Prior
periods reflect the allowance for credit losses for loans under the
incurred loss methodology.
Loan Classification - Total
Portfolio
Special Mention
$
44,741
$
37,121
29,800
$
41,575
$
36,884
$
29,800
Substandard
48,046
52,894
60,499
61,682
47,627
60,499
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases (6)
0.56
%
0.62
%
0.64
%
0.62
%
60.49
%
0.64
%
Nonperforming assets/total assets
0.40
%
0.46
%
0.47
%
0.47
%
0.39
%
0.47
%
Allowance for credit losses/total loans
and leases
0.96
%
1.06
%
0.81
%
0.85
%
0.84
%
0.81
%
Allowance/nonperforming loans and
leases
172.62
%
170.74
%
126.90
%
137.46
%
171.42
%
126.90
%
Net loan and lease losses annualized/total
average loans and leases
0.00
%
0.10
%
0.04
%
0.06
%
0.01
%
0.10
%
Capital Adequacy
Tier 1 Capital (to average assets)
8.79
%
9.53
%
9.61
%
9.43
%
9.25
%
9.61
%
Total Capital (to risk-weighted
assets)
13.95
%
13.62
%
13.53
%
13.36
%
13.34
%
13.53
%
Profitability (period-end)
Return on average assets *
1.16
%
0.48
%
1.26
%
1.21
%
1.15
%
1.22
%
Return on average equity *
12.48
%
4.71
%
12.59
%
12.15
%
11.96
%
12.55
%
Net interest margin (TE) *
3.45
%
3.44
%
3.44
%
3.43
%
3.34
%
3.39
%
** Quarterly ratios have been
annualized
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) - continued
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 below tables. The Company believes the
non-GAAP measures provide meaningful comparisons of our underlying
operational performance and facilitate management's and investors'
assessments of business and performance trends. These non-GAAP
financial measures should not be considered in isolation or as a
measure of the Company's profitability or liquidity; they are in
addition to, and are not a substitute for, financial measures under
GAAP. The non-GAAP financial measures presented herein may be
different from non-GAAP financial measures used by other companies,
and may not be comparable to similarly titled measures reported by
other companies. Further, the Company may utilize other measures to
illustrate performance in the future. Non-GAAP financial measures
have limitations since they do not reflect all of the amounts
associated with the Company's results of operations as determined
in accordance with GAAP.
Reconciliation of Net Income Attributable to Tompkins
Financial Corporation (GAAP) to Net Operating Income Available to
Common Shareholders (Non-GAAP) and Reconciliation of Diluted
Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share
(Non-GAAP)
Quarter-Ended
Year-Ended
Jun-20
Mar-20
Dec-19
Sep-19
Jun-19
Dec-19
Net income available to common
shareholders
$
21,431
$
7,949
$
21,081
$
20,206
$
19,392
$
81,718
Less: income attributable to unvested
stock-based compensations awards
251
99
334
317
306
1,306
Net earnings allocated to common
shareholders (GAAP)
21,180
7,850
20,747
19,889
19,086
80,412
Diluted earnings per share (GAAP)
$
1.44
$
0.53
$
1.40
$
1.34
$
1.27
$
5.37
Adjustments for non-operating income and
expense:
Write-down of real estate pending sale
673
0
0
0
0
0
Total Adjustments
673
0
0
0
0
0
Tax (benefit) expense
(165
)
0
0
0
0
0
Total adjustments, net of tax
508
0
0
0
0
0
Net operating income available to common
shareholders (Non-GAAP)
21,688
7,850
20,747
19,889
19,086
80,412
Weighted average shares outstanding
(diluted)
14,714,848
14,774,269
14,790,503
14,887,626
15,085,945
14,973,951
Adjusted diluted earnings per share
(Non-GAAP)
$
1.47
$
0.53
$
1.40
$
1.34
$
1.27
$
5.37
Year-to-Date
Jun-20
Jun-19
Net income available to common
shareholders
$
29,380
$
40,432
Less: income attributable to unvested
stock-based compensation awards
350
655
Net earnings allocated to common
shareholders (GAAP)
29,030
39,777
Diluted earnings per share (GAAP)
$
1.97
$
2.64
Adjustments for non-operating income and
expense:
Write-down of real estate pending sale
673
0
Tax (benefit) expense
(165
)
0
Total adjustments, net of tax
508
0
Net operating income available to common
shareholders (Non-GAAP)
29,538
39,777
Weighted average shares outstanding
(diluted)
14,714,848
15,085,945
Adjusted diluted earnings per share
(Non-GAAP)
$
2.01
$
2.64
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) - continued
Reconciliation of Common Equity Book
Value Per Share (GAAP) to Tangible Book Value Per Share
(non-GAAP)
Total common equity
$
696,553
$
681,153
$
661,642
$
658,358
$
656,201
$
661,642
Less: Goodwill and intangibles (7)
97,107
97,481
97,855
98,277
98,698
97,855
Tangible common equity (Non-GAAP)
599,446
583,672
563,787
560,081
557,503
563,787
Ending shares outstanding
14,914,458
14,907,947
14,978,589
14,975,750
15,160,719
14,978,589
Tangible book value per share
(Non-GAAP)
$
40.19
$
39.15
$
37.64
$
37.40
$
36.77
$
37.64
(1) Federal Reserve peer ratio as of March
31, 2020 the most recent data available, includes banks and bank
holding companies with consolidated assets between $3 billion and
$10 billion.
(2) Average balances and yields on
available-for-sale securities are based on historical amortized
cost.
(3) Interest income includes the tax
effects of taxable-equivalent basis.
(4) 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, 2019.
(5) 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
(6) 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 Company's estimate of
acquisition-date fair value and these loans are considered accruing
as the Company primarily recognizes interest income through
accretion of the difference between the carrying value of these
loans and their expected cash flows.
(7) "Goodwill and intangibles" as shown in
the above tables, equal total intangible assets less mortgage
servicing rights.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200724005035/en/
Stephen S. Romaine, President & CEO Francis M. Fetsko,
Executive VP, CFO & COO Tompkins Financial Corporation (888)
503-5753
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