Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation reported diluted earnings per
share of $1.63 for the third quarter of 2020, up 21.6% compared to
$1.34 reported in the third quarter of 2019. Net income for the
third quarter of 2020 was $24.2 million, an increase over the $20.2
million reported for the same period in 2019.
For the year-to-date period ended September 30, 2020, diluted
earnings per share were $3.59, down 9.6% from the same period in
2019. Year-to-date net income was $53.6 million, down from $60.6
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.
President and CEO, Mr. Stephen Romaine commented, "We are
pleased to report record earnings per share in the third quarter of
2020. When compared to the second quarter of 2020, we saw higher
levels of net interest income and noninterest income, while
expenses remained relatively stable. We are encouraged by these
favorable trends, though the impact of the pandemic-related
economic shut down continues to leave much uncertainty, especially
in terms of the longer term credit outlook. While we have several
customers who continue to be negatively impacted by the current
economic environment, our nonperforming assets as a percentage of
total assets were lower at September 30, 2020 than they were at the
same time last year. We have also seen a declining trend of
customers who are in a deferred payment status.”
SELECTED HIGHLIGHTS FOR THE THIRD QUARTER:
- Total loans of $5.4 billion were up $541.2 million, or 11.1%
over September 30, 2019. The increase over the prior period
included $465.6 million of PPP loans funded during the second
quarter of 2020.
- Total deposits of $6.6 billion increased by $1.2 billion, or
22.9% over September 30, 2019.
- The ratio of Total Capital to Risk-Weighted Assets improved to
14.26%, up from 13.95% at June 30, 2020, and 13.53% at December 31,
2019.
NET INTEREST INCOME
Net interest income was $58.3 million for the third quarter of
2020, compared to $53.2 million reported for the third quarter of
2019. For the year-to-date period, net interest income was $167.6
million, an increase of $10.2 million or 6.5% from the same
nine-month period in 2019.
Net interest income benefited from growth in average loans and
average deposits. Average loans were up $381.6 million, or 7.9% in
the nine months ended September 30, 2020, compared to the same nine
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 36
basis points compared to the first nine months of 2019, which
reflects the impact of reductions in market interest rates during
the first nine months of 2020, and the addition of the lower
yielding PPP loans originated in the second quarter. While PPP
loans were a significant contributor to average loan growth for the
year, increases in residential real estate loans (up 5.8% from
2019) and commercial real estate (up 6.0% from 2019), also
contributed to the growth in year-to-date average loan
balances.
Average total deposits were up $937.4 million, or 18.7% in the
first nine months of 2020, versus the same period in 2019. Average
noninterest deposits were up $318.9 million or 23.1% in the first
nine 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 nine
months of 2020 decreased by 32 basis points from the same period in
2019. The total cost of interest-bearing liabilities declined by 49
basis points to 0.66% from the same period last year.
Net interest margin was 3.26% for the third quarter of 2020,
down compared to the 3.43% reported for the third quarter of 2019,
and 3.45% for the second quarter of 2020. The decline in net
interest margin during the third quarter, when compared to the
second quarter of 2020, was driven in part by a shift from
noninterest-bearing cash balances to interest-bearing cash balances
and securities. This shift from noninterest-bearing balances to
earning assets resulted in an increase in interest income during
the third quarter of 2020, but a 15 basis point decline in net
interest margin, when compared to the immediate prior quarter. Net
interest margin for the quarter was also negatively impacted by
lower rates on interest earning assets, which were partially offset
by lower funding costs.
As a result of its participation in the SBA's PPP, in the third
quarter the Company recorded net deferred loan fees of $2.4
million, which are included in interest income. For the
year-to-date period, net deferred loan fees from PPP loan
originations were $4.8 million.
NONINTEREST INCOME
Noninterest income represented 24.7% of total revenues in the
first nine months of 2020, as compared to 26.7% in the same period
in 2019. Noninterest income of $18.9 million for the third quarter
of 2020 was down 3.3% compared to the same period in 2019. For the
year-to-date period, noninterest income of $55.0 million was down
4.2% from the same period in 2019. Total fee based services in the
third quarter of 2020 were $17.1 million, down 2.1% compared to the
same period in 2019. The reduction in fee based income in 2020,
when compared to 2019, is largely related to the pandemic-related
travel and business restrictions, which reduced card services fees
and service charges on deposit accounts. It is noteworthy that card
services fees and deposit fees in the third quarter of 2020 were up
over the second quarter of 2020, by 6.0% and 15.7%
respectively.
NONINTEREST EXPENSE
Noninterest expense was $46.3 million for the third quarter of
2020, up $694,000, or 1.5%, over the third quarter of 2019. For the
year-to-date period, noninterest expense was $139.0 million, up
$3.0 million, or 2.2%, from the same period in 2019. The increase
in noninterest expense for both the third quarter and year-to-date
periods was primarily attributable to normal annual increases in
salaries and wages. Other expense for the third quarter and
year-to-date periods of 2020 included a credit of $417,000 and an
expense of $1.3 million, respectively, related to the allowance for
credit losses for off-balance sheet exposures.
INCOME TAX EXPENSE
The Company's effective tax rate was 20.7% for the third quarter
of 2020, compared to 21.3% for the same period in 2019. The
effective tax rate for the nine months ended September 30, 2020 was
20.4%, compared to 20.7% reported for the same period in 2019.
ASSET QUALITY
Provision for credit losses in the third quarter of 2020 was
$199,000 compared to $1.3 million for the same period in 2019.
Provision expense for the nine months ended September 30, 2020 was
$16.1 million, compared to $2.4 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 third quarter of 2020 were $12,000 compared to net charge-offs
of $739,000 reported in the third quarter of 2019.
The allowance for credit losses represented 0.97% of total loans
and leases at September 30, 2020, up from 0.96% at June 30, 2020,
0.81% at December 31, 2019, and 0.85% at September 30, 2019. The
ratio of the allowance to total nonperforming loans and leases was
154.68% at September 30, 2020, improved from 126.90% at December
31, 2019, and 137.46% at September 30, 2019.
Nonperforming assets represented 0.44% of total assets at
September 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 0.58%.
Despite relatively stable trends in nonperforming assets and
other delinquency, some customers have experienced continued cash
flow stress related to the pandemic related shut-down, resulting in
an increase in loans rated as Special Mention. Total Special
Mention loans totaled $122.7 million at the end of the third
quarter, up from $44.7 million at June 30, 2020. Even so, the more
severely rated Substandard credits declined during the quarter to
$45.4 million at September 30, 2020, down from $48.0 million at
June 30, 2020.
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 customers who have been impacted by
the economic conditions associated with the COVID-19 pandemic. The
Company 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 month of
September were down 96.8% from peak levels the Company experienced
in late March. As of September 30, 2020, total loans that continue
in a deferral status amounted to approximately $120.0 million,
representing 2.2% of total loans. Of loans that have come out of
the deferral program as of September 30, 2020, about 85.0% had made
a payment and 0.18% were more than 30 days delinquent.
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 2,998 loans totaling about $465.6 million
as of September 30, 2020. As of September 30, 2020 approximately
295 loans totaling $51.9 million have been submitted to the SBA for
forgiveness under the terms of the PPP program.
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 14.26% at September 30, 2020, up
from 13.95% at June 30, 2020, and 13.53% at December 31, 2019. The
ratio of Tier 1 capital to average assets was 8.85% at September
30, 2020, up from 8.79% at June 30, 2020, and down from 9.61% at
December 31, 2019. The current period Tier 1 capital to average
assets was negatively impacted by balance sheet growth associated
with the PPP loans originated in the second quarter of 2020. In
April of this year, the Company announced that it had temporarily
suspended its share repurchase program. Management has not yet
determined when it will resume repurchases under the share
repurchase program. Any such decision will be based on, among other
factors, the Company's financial and capital position.
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 Reports on Form 10-K and our Quarterly
Reports on form 10-Q as filed with the Securities and Exchange
Commission, 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; uncertainties arising from national and global events,
including the potential impact of widespread protests, civil
unrest, and political uncertainty on the economy and the financial
services industry; 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
9/30/2020
12/31/2019
Cash and noninterest bearing balances due
from banks
$
22,065
$
136,010
Interest bearing balances due from
banks
352,674
1,972
Cash and Cash
Equivalents
374,739
137,982
Available-for-sale debt securities, at
fair value (amortized cost of $1,637,255 at September 30, 2020 and
$1,293,239 at December 31, 2019)
1,666,766
1,298,587
Equity securities, at fair value
(amortized cost $932 at September 30, 2020 and $915 at December 31,
2019)
932
915
Total loans and leases, net of unearned
income and deferred costs and fees
5,398,297
4,917,550
Less: Allowance for credit losses
52,293
39,892
Net Loans and Leases
5,346,004
4,877,658
Federal Home Loan Bank and other stock
17,919
33,695
Bank premises and equipment, net
89,015
94,355
Corporate owned life insurance
84,165
82,961
Goodwill
92,447
92,447
Other intangible assets, net
5,211
6,223
Accrued interest and other assets
117,304
100,800
Total Assets
$
7,794,502
$
6,725,623
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,979,253
3,080,686
Time
706,401
675,014
Noninterest bearing
1,915,584
1,457,221
Total Deposits
6,601,238
5,212,921
Federal funds purchased and securities
sold under agreements to repurchase
63,573
60,346
Other borrowings
285,000
658,100
Trust preferred debentures
17,163
17,035
Other liabilities
113,917
114,167
Total Liabilities
$
7,080,891
$
6,062,569
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,962,162 at September 30,
2020; and 15,014,499 at December 31, 2019
1,496
1,501
Additional paid-in capital
337,329
338,507
Retained earnings
402,498
370,477
Accumulated other comprehensive loss
(23,864)
(43,564)
Treasury stock, at cost – 121,868 shares
at September 30, 2020, and 123,956 shares at December 31, 2019
(5,355)
(5,279)
Total Tompkins Financial
Corporation Shareholders’ Equity
712,104
661,642
Noncontrolling interests
1,507
1,412
Total Equity
$
713,611
$
663,054
Total Liabilities and
Equity
$
7,794,502
$
6,725,623
TOMPKINS FINANCIAL
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
9/30/2020
9/30/2019
9/30/2020
9/30/2019
INTEREST AND DIVIDEND INCOME
Loans
$
57,892
$
57,621
$
169,639
$
169,685
Due from banks
83
11
90
31
Available-for-sale debt securities
6,035
6,511
20,101
22,055
Held-to-maturity securities
0
862
0
2,583
Federal Home Loan Bank and other stock
306
770
1,130
2,442
Total Interest and Dividend
Income
64,316
$
65,775
190,960
$
196,796
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
755
823
2,458
2,184
Other deposits
3,450
7,583
13,723
20,409
Federal funds purchased and securities
sold under agreements to repurchase
19
34
76
110
Trust preferred debentures
216
317
758
974
Other borrowings
1,623
3,862
6,357
15,731
Total Interest Expense
6,063
12,619
23,372
39,408
Net Interest Income
58,253
53,156
167,588
157,388
Less: Provision for credit loss
expense
199
1,320
16,145
2,366
Net Interest Income After
Provision for Credit Loss Expense
58,054
51,836
151,443
155,022
NONINTEREST INCOME
Insurance commissions and fees
8,916
8,517
24,216
24,314
Investment services income
4,292
4,175
12,414
12,166
Service charges on deposit accounts
1,444
2,191
4,675
6,210
Card services income
2,419
2,550
6,885
8,090
Other income
1,818
1,963
6,388
6,247
Net (loss) gain on securities
transactions
(2)
138
446
434
Total Noninterest Income
18,887
19,534
55,024
$
57,461
NONINTEREST EXPENSE
Salaries and wages
23,951
22,960
69,482
66,149
Other employee benefits
6,690
5,821
18,260
17,094
Net occupancy expense of premises
3,162
3,236
9,530
10,095
Furniture and fixture expense
1,886
1,919
5,759
5,894
Amortization of intangible assets
371
421
1,120
1,251
Other operating expense
10,289
11,298
34,826
35,451
Total Noninterest Expenses
46,349
45,655
138,977
135,934
Income Before Income Tax
Expense
30,592
25,715
67,490
76,549
Income Tax Expense
6,330
5,478
13,779
15,816
Net Income Attributable to
Noncontrolling Interests and Tompkins Financial Corporation
24,262
20,237
53,711
60,733
Less: Net Income Attributable to
Noncontrolling Interests
32
31
101
95
Net Income Attributable to
Tompkins Financial Corporation
$
24,230
20,206
$
53,610
60,638
Basic Earnings Per Share
$
1.63
$
1.34
$
3.60
$
3.99
Diluted Earnings Per Share
$
1.63
$
1.34
$
3.59
$
3.97
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Year to Date Period
Ended
Year to Date Period
Ended
September 30, 2020
September 30, 2020
September 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
326,908
$
83
0.10
%
111,775
$
90
0.11
%
2,460
$
31
1.68
%
Securities (2)
U.S. Government securities
1,332,240
5,362
1.60
%
1,242,659
18,236
1.96
%
1,338,807
22,990
2.30
%
State and municipal (3)
122,932
816
2.64
%
110,058
2,225
2.70
%
93,131
1,903
2.73
%
Other securities (3)
3,433
25
2.88
%
3,429
93
3.61
%
3,417
120
4.70
%
Total securities
1,458,605
6,203
1.69
%
1,356,146
20,554
2.02
%
1,435,355
25,013
2.33
%
FHLBNY and other stock
18,319
307
6.66
%
22,175
1,130
6.81
%
42,634
2,442
7.66
%
Total loans and leases, net of unearned
income (3)(4)
5,400,217
58,507
4.31
%
5,197,757
170,853
4.39
%
4,816,140
170,540
4.73
%
Total interest-earning assets
7,204,049
65,100
3.59
%
6,687,853
192,627
3.85
%
6,296,589
198,026
4.21
%
Other assets
377,960
536,424
405,358
Total assets
7,582,009
7,224,278
6,701,947
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings &
money market
3,796,615
1,671
0.18
%
3,557,326
7,973
0.30
%
2,962,236
14,865
0.67
%
Time deposits
697,026
2,534
1.45
%
693,922
8,208
1.58
%
670,570
7,728
1.54
%
Total interest-bearing deposits
4,493,641
4,205
0.37
%
4,251,248
16,181
0.51
%
3,632,806
22,593
0.83
%
Federal funds purchased & securities
sold under agreements to repurchase
47,527
19
0.16
%
54,481
76
0.19
%
61,482
110
0.24
%
Other borrowings
303,587
1,623
2.13
%
397,511
6,357
2.14
%
861,930
15,731
2.44
%
Trust preferred debentures
17,135
216
5.02
%
17,093
758
5.92
%
16,921
974
7.70
%
Total interest-bearing
liabilities
4,861,890
6,063
0.50
%
4,720,332
23,372
0.66
%
4,573,139
39,408
1.15
%
Non-interest bearing deposits
1,897,999
1,699,317
1,380,399
Accrued expenses and other liabilities
112,636
111,643
101,483
Total liabilities
6,872,525
6,531,292
6,055,021
Tompkins Financial Corporation
Shareholders’ equity
707,996
691,530
645,466
Noncontrolling interest
1,488
1,456
1,460
Total equity
709,484
692,986
646,926
Total liabilities and equity
7,582,009
7,224,278
6,701,947
Interest rate spread
3.10
%
3.19
%
3.05
%
Net interest income/margin on earning
assets
59,037
3.26
%
169,255
3.38
%
158,618
3.37
%
Tax equivalent adjustments
(784)
(1,667)
(1,230)
Net interest income per consolidated
financial statements
$
58,253
$
167,588
$
157,388
Tompkins Financial Corporation - Summary Financial Data
(Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Sep-20
Jun-20
Mar-20
Dec-19
Sep-19
Dec-19
Securities
$
1,667,698
$
1,336,087
$
1,353,567
$
1,299,502
$
1,282,026
$
1,299,502
Total Loans
5,398,297
5,424,285
4,937,822
4,917,550
4,857,073
4,917,550
Allowance for credit losses
52,293
52,082
52,404
39,892
41,371
39,892
Total assets
7,794,502
7,582,056
6,743,114
6,725,623
6,627,982
6,725,623
Total deposits
6,601,238
6,377,521
5,409,363
5,212,921
5,369,990
5,212,921
Federal funds purchased and securities
sold under agreements to repurchase
63,573
50,889
68,993
60,346
50,541
60,346
Other borrowings
285,000
325,000
457,983
658,100
429,000
658,100
Trust preferred debentures
17,163
17,120
17,078
17,035
16,992
17,035
Total common equity
712,104
696,553
681,153
661,642
658,358
661,642
Total equity
713,611
698,029
682,597
663,054
659,865
663,054
Average Balance Sheet
Average earning assets
$
7,204,049
$
6,616,079
$
6,237,773
$
6,188,442
$
6,203,078
$
6,268,440
Average assets
7,582,009
7,413,945
6,672,948
6,613,202
6,621,412
6,679,578
Average interest-bearing liabilities
4,861,890
4,825,753
4,471,797
4,374,572
4,415,079
4,523,088
Average equity
709,484
690,475
678,817
664,441
659,650
651,341
Share data
Weighted average shares outstanding
(basic)
14,697,532
14,681,956
14,718,948
14,726,023
14,827,114
14,907,057
Weighted average shares outstanding
(diluted)
14,727,741
14,714,848
14,774,269
14,790,503
14,887,626
14,973,951
Period-end shares outstanding
14,926,252
14,914,458
14,907,947
14,978,589
14,975,750
14,978,589
Common equity book value per share
$
47.71
$
46.70
$
45.69
$
44.17
$
43.96
$
44.17
Tangible book value per share
(Non-GAAP)**
$
41.23
$
40.19
$
39.15
$
37.64
$
37.40
$
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
$
58,253
$
56,366
$
52,969
$
53,240
$
53,156
$
210,628
Provision (credit) for credit loss
expense
199
(348)
16,294
(1,000)
1,320
1,366
Noninterest income
18,887
17,177
18,960
17,972
19,534
75,433
Noninterest expense
46,349
46,888
45,740
45,900
45,655
181,834
Income tax expense
6,330
5,540
1,909
5,200
5,478
21,016
Net income attributable to Tompkins
Financial Corporation
24,230
21,431
7,949
21,080
20,206
81,718
Noncontrolling interests
32
32
37
32
31,000
127
Basic earnings per share (5)
$
1.63
$
1.44
$
0.53
$
1.41
$
1.34
$
5.39
Diluted earnings per share (5)
$
1.63
$
1.44
$
0.53
$
1.40
$
1.34
$
5.37
Nonperforming Assets
Nonaccrual loans and leases
$
26,944
$
23,183
$
23,556
$
24,281
$
23,568
$
24,281
Loans and leases 90 days past due and
accruing
0
0
0
0
0
0
Troubled debt restructuring not included
above
6,864
6,988
7,137
7,154
6,528
7,154
Total nonperforming loans and leases
33,808
30,171
30,693
31,435
30,096
31,435
OREO
196
274
466
428
888
428
Total nonperforming assets
$
34,004
$
30,445
$
31,159
$
31,863
$
30,984
$
31,863
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease
portfolio
Sep-20
Jun-20
Mar-20
Dec-19
Sep-19
Dec-19
Loans and leases 30-89 days past due
and
accruing
$
6,875
$
8,352
$
9,328
$
3,724
$
3,519
$
3,724
Loans and leases 90 days past due and
accruing
0
0
0
794
1,219
794
Total loans and leases past due and
accruing
6,875
8,352
9,328
4,518
4,738
4,518
Allowance for Credit Losses*
Balance at beginning of period
$
52,082
$
52,404
$
39,892
$
41,371
$
40,790
$
43,410
Impact of adopting ASC 326
0
0
(2,534)
0
0
0
Provision (credit) for credit losses
199
(348)
16,294
(1,000)
1,320
1,366
Net loan and lease (recoveries)
charge-offs
(12)
(26)
1,248
479
739
4,884
Allowance for credit losses at end of
period
$
52,293
$
52,082
$
52,404
$
39,892
$
41,371
$
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
$
122,652
$
44,741
$
37,121
29,800
$
41,575
$
29,800
Substandard
45,384
48,046
52,894
60,499
61,682
60,499
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases (6)
0.63
%
0.56
%
0.62
%
0.64
%
0.62
%
0.64
%
Nonperforming assets/total assets
0.44
%
0.40
%
0.46
%
0.47
%
0.47
%
0.47
%
Allowance for credit losses/total loans
and leases
0.97
%
0.96
%
1.06
%
0.81
%
0.85
%
0.81
%
Allowance/nonperforming loans and
leases
154.68
%
172.62
%
170.74
%
126.90
%
137.46
%
126.90
%
Net loan and lease losses annualized/total
average loans and leases
0.00
%
0.00
%
0.10
%
0.04
%
0.06
%
0.10
%
Capital Adequacy
Tier 1 Capital (to average assets)
8.85
%
8.79
%
9.53
%
9.61
%
9.43
%
9.61
%
Total Capital (to risk-weighted
assets)
14.26
%
13.95
%
13.62
%
13.53
%
13.36
%
13.53
%
Profitability (period-end)
Return on average assets *
1.27
%
1.16
%
0.48
%
1.26
%
1.21
%
1.22
%
Return on average equity *
13.59
%
12.48
%
4.71
%
12.59
%
12.15
%
12.55
%
Net interest margin (TE) *
3.26
%
3.45
%
3.44
%
3.44
%
3.43
%
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 U.S. generally accepted
accounting principles (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
Sep-20
Jun-20
Mar-20
Dec-19
Sep-19
Dec-19
Net income available to common
shareholders
$
24,230
$
21,431
$
7,949
$
21,081
$
20,206
$
81,718
Less: income attributable to unvested
stock-based compensations awards
278
251
99
334
317
1,306
Net earnings allocated to common
shareholders (GAAP)
23,952
21,180
7,850
20,747
19,889
80,412
Diluted earnings per share (GAAP)
$
1.63
$
1.44
$
0.53
$
1.40
$
1.34
$
5.37
Adjustments for non-operating income and
expense:
Write-down of real estate pending sale
0
673
0
0
0
0
Total Adjustments
0
673
0
0
0
0
Tax (benefit) expense
0
(165)
0
0
0
0
Total adjustments, net of tax
0
508
0
0
0
0
Net operating income available to common
shareholders (Non-GAAP)
23,952
21,688
7,850
20,747
19,889
80,412
Weighted average shares outstanding
(diluted)
14,727,741
14,714,848
14,774,269
14,790,503
14,887,626
14,973,951
Adjusted diluted earnings per share
(Non-GAAP)
$
1.63
$
1.47
$
0.53
$
1.40
$
1.34
$
5.37
Year-to-Date
Sep-20
Sep-19
Net income available to common
shareholders
$
53,610
$
60,638
Less: income attributable to unvested
stock-based compensation awards
628
972
Net earnings allocated to common
shareholders (GAAP)
52,982
59,666
Diluted earnings per share (GAAP)
$
3.59
$
3.97
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)
53,490
59,666
Weighted average shares outstanding
(diluted)
14,738,921
15,035,780
Adjusted diluted earnings per share
(Non-GAAP)
$
3.63
$
3.97
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)
Quarter-Ended
Year-Ended
Sep-20
Jun-20
Mar-20
Dec-19
Sep-19
Dec-19
Total common equity
$
712,104
$
696,553
$
681,153
$
661,642
$
658,358
$
661,642
Less: Goodwill and intangibles (7)
96,735
97,107
97,481
97,855
98,277
97,855
Tangible common equity (Non-GAAP)
615,369
599,446
583,672
563,787
560,081
563,787
Ending shares outstanding
14,926,252
14,914,458
14,907,947
14,978,589
14,975,750
14,978,589
Tangible book value per share
(Non-GAAP)
$
41.23
$
40.19
$
39.15
$
37.64
$
37.40
$
37.64
(1) Federal Reserve peer ratio as of June
30, 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/20201023005300/en/
Stephen S. Romaine, President & CEO Francis M. Fetsko,
Executive VP, CFO & COO Tompkins Financial Corporation (888)
503-5753
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