Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company")
reported diluted earnings per share of $0.59 for the second quarter
of 2023, down 56.3% from the immediate prior quarter, and down
59.3% from diluted earnings per share of $1.45 reported in the
second quarter of 2022. Net income for the second quarter of 2023
was $8.5 million, down $12.4 million, or 59.4%, when compared to
the $20.9 million reported for the same period in 2022.
Results for the current quarter were negatively affected by the
sale of $80.9 million of available-for-sale securities. Though the
sale resulted in a $7.1 million pre-tax loss on securities
transactions during the quarter (or $0.37 per share), the
transaction is expected to have a positive impact on future
earnings. The available-for-sale securities sold in the second
quarter of 2023 had an average yield of 0.48%, with a remaining
average life of 2.3 years. Approximately $15.0 million of the
proceeds from sale were reinvested in available-for-sale securities
with an average yield of approximately 4.30%, while the remaining
proceeds were used to pay down approximately $65.0 million of
overnight borrowings with the Federal Home Loan Bank ("FHLB").
For the year-to-date period ended June 30, 2023, diluted
earnings per share were $1.94, down 36.4% from $3.05 for the same
year-to-date period in 2022. Year-to-date net income was $27.9
million for the six month period ended June 30, 2023, down $16.3
million, or 36.9%, when compared to $44.1 million for the same
period in 2022. Year-to-date results were also negatively impacted
by the loss on securities transactions described above.
Tompkins President and CEO, Stephen Romaine, commented, "The
economic environment remains challenging for the banking industry.
Despite these challenges, which continue to negatively affect our
net interest income, we saw some positive trends during the second
quarter and first half of 2023. These included annualized loan
growth of 6.0% from the immediate prior quarter, stable noninterest
bearing deposit balances when compared to the first quarter this
year, and year-to-date annualized fee income growth of 1.3% over
that same period in 2022."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Total loans at June 30, 2023 were $5.4 billion, up 6.0%
annualized compared to the immediate prior quarter, and up $189.9
million, or 3.7%, from June 30, 2022.
- Total deposits at June 30, 2023 were $6.5 billion, down $54.4
million, or 0.84%, from March 31, 2023 and down $314.9 million, or
4.65%, from June 30, 2022. The year-over-year pace of decline of
total deposits slowed in the second quarter, when compared to the
year-over-year decline of 7.2% over the twelve month period ended
March 31, 2023.
- Loan to deposit ratio remains stable at 83% as compared to 81%
for the prior quarter
- Regulatory Tier 1 capital to average assets was 9.57% at June
30, 2023, compared to 9.63% at March 31, 2023 and 9.02% at June 30,
2022.
- Total nonperforming assets at June 30, 2023 represented 0.41%
of total assets, an increase of 10.8% from the immediate prior
quarter.
NET INTEREST INCOME
Net interest income was $51.9 million for the second quarter of
2023, down from $54.2 million for the first quarter of 2023 and
$58.3 million for the second quarter of 2022. Net interest margin
was 2.83% for the second quarter of 2023, compared to 2.99%
reported for the first quarter of 2023 and 3.09% reported for the
second quarter of 2022. The decrease in net interest income and net
interest margin from the first quarter of 2023 and the second
quarter of 2022 was due primarily to the increase in interest rates
on interest-bearing liabilities outpacing increases on interest
earning asset yields due to the higher interest rate
environment.
For the year-to-date period ended June 30, 2023, net interest
income was $106.1 million, down $8.7 million or 7.6% when compared
to the same period in 2022.
Average loans for the quarter ended June 30, 2023 were up $53.4
million, or 1.0%, from the first quarter of 2023, and $189.4
million, or 3.7%, compared to the same period in 2022. The increase
in average loans was mainly in the commercial real estate portfolio
compared to the first quarter of 2023, and the quarter ended June
30, 2022. The average yield on interest-earning assets for the
quarter ended June 30, 2023 was 3.91%, up 10 basis points compared
to the quarter ended March 31, 2023, and up 68 basis points
compared to the quarter ended June 30, 2022.
Average total deposits for the second quarter of 2023 were down
$121.4 million, or 1.8%, compared to the first quarter of 2023, and
down $414.4 million, or 6.0%, compared to the same period in 2022.
The decrease was largely driven by a decline in stimulus funding
and a tightening monetary policy that has led to a declining trend
in bank deposits on a national level, as reported by the Federal
Reserve. The cost of interest-bearing deposits increased to 1.41%
for the second quarter of 2023, compared to 1.10% for the first
quarter of 2023, and 0.18% for the second quarter of 2022. The cost
of interest-bearing deposits for the second quarter of 2023
increased 31 basis points from March 31, 2023, which is down from
the 41 basis point increase in the cost of interest-bearing
deposits for the first quarter of 2023, compared to the fourth
quarter of 2022. Noninterest bearing deposits to total deposits at
June 30, 2023, were 31.4% compared to 30.9% at March 31, 2023. The
average cost of interest-bearing liabilities for the second quarter
of 2023 of 1.64%, represents an increase of 38 basis points over
the first quarter of 2023, and an increase of 142 basis points over
the same period in 2022.
NONINTEREST INCOME
Noninterest income of $12.6 million for the second quarter of
2023 was down $6.3 million, or 33.4%, compared to the second
quarter of 2022. Year-to-date noninterest income of $33.0 million
was down $5.9 million, or 15.2%, compared to the same six month
period in 2022. Noninterest income represented 19.6% of total
revenue for the quarter ended June 30, 2023, compared to 24.5% for
the quarter ended June 30, 2022. The decrease in noninterest income
in the second quarter of 2023 was largely due to the sale of
available-for-sale securities, which resulted in the recognition of
a pre-tax loss of $7.1 million. Partially offsetting the decreases
in noninterest income in the second quarter of 2023 compared to the
prior year quarter were increases in fee income of $337,000 and an
increase in income on bank-owned life insurance of $383,000.
NONINTEREST EXPENSE
Noninterest expense was $52.0 million for the second quarter of
2023, which was up $2.8 million, or 5.8%, over the second quarter
of 2022. For the year-to-date period, noninterest expense of $102.1
million was up $6.2 million, or 6.4%, from the same period in 2022.
The increase in noninterest expense in the second quarter of 2023
over the same quarter last year was mainly in higher
personnel-related expenses, up $1.2 million. The increase in
personnel-related expenses was mainly in salaries and wages and
reflects annual merit adjustments. Significant components that
increased in other expenses were professional fees which were up
$405,000, other losses which were up $517,000, and marketing which
was up $232,000, in each case as compared to the second quarter of
2022.
INCOME TAX EXPENSE
The Company's effective tax rate was 17.3% for the second
quarter of 2023, compared to 23.2% for the same period in 2022. The
effective tax rate for the six months ended June 30, 2023 was
21.6%, compared to 23.1% reported for the same period in 2022.
The decrease in the effective tax rate for the three and six
months ended June 30, 2023, compared to the same periods in 2022 is
largely due to the anticipated retention of certain New York State
tax benefits. The Company's banking subsidiary has an investment in
a real estate investment trust that provides certain benefits on
its New York State tax return for qualifying entities. A condition
to claim the benefit is that the consolidated company has qualified
average assets of no more than $8.0 billion for the taxable year.
Based on current estimates of average assets during 2023, the
Company expects to retain the benefits in 2023.
ASSET QUALITY
The allowance for credit losses represented 0.91% of total loans
and leases at June 30, 2023, up from 0.87% at March 31, 2023, and
up from 0.85% at June 30, 2022. The ratio of the allowance to total
nonperforming loans and leases was 154.76% for the second quarter
of 2023, compared to 162.11% at March 31, 2023 and 147.95% at June
30, 2022.
Provision for credit losses for the second quarter of 2023 was
$2.3 million compared to $856,000 for the same period in 2022.
Provision for credit losses for the six months ended June 30, 2023
was $1.4 million, compared to $336,000 for the six months ended
June 30, 2022. The increase in provision expense for both the
quarter and year-to-date periods was mainly driven by weaker
economic forecasts, loan growth, and changes in asset quality. Net
recoveries for the quarter ended June 30, 2023 were $27,000
compared to net recoveries of $887,000 reported for the same period
in 2022.
Nonperforming assets represented 0.41% of total assets at June
30, 2023, down from 0.43% at December 31, 2022 and up from the
0.38% reported at June 30, 2022. At June 30, 2023, nonperforming
loans and leases totaled $31.4 million, compared to $32.8 million
at December 31, 2022 and $29.6 million at June 30, 2022. The
increase in loans past due 30-89 days at quarter end June 30, 2023
was mainly due to the inclusion of a $15.3 million commercial real
estate loan.
Special Mention and Substandard loans and leases totaled $118.1
million at June 30, 2023, reflecting an increase from the $98.3
million reported at December 31, 2022, and $115.0 million at June
30, 2022. The increase over year-end in Special Mention and
Substandard was mainly a result of the downgrade of one commercial
real estate loan added to Special Mention during the second quarter
of 2023 and the downgrade of one commercial real estate loan
previously reported as Special Mention.
CAPITAL POSITION
Capital ratios at June 30, 2023 remained well above the
regulatory minimums for well-capitalized institutions. The ratio of
total capital to risk-weighted assets was 14.48% at June 30, 2023,
compared to 14.42% at December 31, 2022 and 14.07% at June 30,
2022. The ratio of Tier 1 capital to average assets was 9.57% at
June 30, 2023, compared to 9.34% at December 31, 2022 and 9.02% at
June 30, 2022.
During the second quarter of 2023, the Company repurchased
108,219 common shares at an aggregate cost of $6.3 million. These
shares were purchased under the Company's Stock Repurchase Program
announced in the third quarter of 2021.
The Company announced today that its Board of Directors has
authorized a new Stock Repurchase Program to repurchase up to
400,000 shares of the Company's outstanding common stock, par value
$0.10 per share, from time to time, over the next 24 months.
LIQUIDITY POSITION
The Company's liquidity position remained stable from the first
quarter of 2023. Liquidity is enhanced by ready access to national
and regional wholesale funding sources including Federal funds
purchased, repurchase agreements, brokered deposits, Federal
Reserve Bank Discount Window advances and FHLB advances. The
Company maintains ready access liquidity of $1.7 billion, or 22.3%
of total assets at June 30, 2023. As members of the FHLB, the
Company can use certain unencumbered mortgage-related assets and
securities to secure borrowings from the FHLB. At June 30, 2023 the
Company had an available borrowing capacity at the FHLB of $1.3
billion, unchanged from the first quarter of 2023. Through various
programs at the Federal Reserve Bank, the Company has the ability
to use certain unencumbered mortgage-related assets and securities
to secure borrowings from the Federal Reserve Bank's Discount
Window. At June 30, 2023 the available borrowing capacity with the
Federal Reserve Bank was $245.7 million, secured by investment
securities. In addition to the available borrowing lines at the
FHLB and Federal Reserve Bank, at June 30, 2023, the Company
maintained $137.7 million of unencumbered securities which could be
pledged to further enhance secured borrowing capacity.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and 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 Community 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 Act of 1995:
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The statements contained in this press release that are not
statements of historical fact may include forward-looking
statements that involve a number of risks and uncertainties.
Forward-looking statements may be identified by use of such words
as "may", "will", "estimate", "intend", "continue", "believe",
"expect", "plan", or "anticipate", the negative and other
variations of these terms 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
and historical performance. The following factors, in addition to
those listed as Risk Factors in Item 1A in 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; our ability to attract and retain deposits and access
other sources of liquidity; GDP growth; the impact of the interest
rate and inflationary environment on the Company's business,
financial condition and results of operations; 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 state and local government mandates, SEC rule-making, the
Dodd-Frank Act and Basel III and the Economic Growth, Regulatory
Relief, and Consumer Protection Act; the impact of any change in
the FDIC insurance assessment rate or the rules and regulations
related to the calculation of the FDIC insurance assessment amount;
technological developments and changes; cyber security incidents
and threats, 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 war in Ukraine, as well
as the potential impact of widespread protests, civil unrest,
political uncertainty on the economy and the financial services
industry, and pandemics or other public health crises, including
the COVID-19 pandemic; and access to 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
CONSOLIDATED STATEMENTS OF
CONDITION
(In thousands, except share and
per share data)
As of
As of
ASSETS
06/30/2023
12/31/2022
(Audited)
Cash and noninterest bearing balances due
from banks
$
65,916
$
18,572
Interest bearing balances due from
banks
15,698
59,265
Cash and Cash
Equivalents
81,614
77,837
Available-for-sale debt securities, at
fair value (amortized cost of $1,688,051 at June 30, 2023 and
$1,831,791 at December 31, 2022)
1,468,003
1,594,967
Held-to-maturity securities, at amortized
cost (fair value of $262,444 at June 30, 2023 and $261,692 at
December 31, 2022)
312,369
312,344
Equity securities, at fair value
778
777
Total loans and leases, net of unearned
income and deferred costs and fees
5,352,365
5,268,911
Less: Allowance for credit losses
48,545
45,934
Net Loans and Leases
5,303,820
5,222,977
Federal Home Loan Bank and other stock
23,649
17,720
Bank premises and equipment, net
81,087
82,140
Corporate owned life insurance
86,709
85,556
Goodwill
92,602
92,602
Other intangible assets, net
2,513
2,708
Accrued interest and other assets
173,094
181,058
Total Assets
$
7,626,238
$
7,670,686
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,659,220
3,820,739
Time
770,594
631,411
Noninterest bearing
2,024,837
2,150,145
Total Deposits
6,454,651
6,602,295
Federal funds purchased and securities
sold under agreements to repurchase
50,483
56,278
Other borrowings
387,100
291,300
Other liabilities
97,563
103,423
Total Liabilities
$
6,989,797
$
7,053,296
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,441,413 at June 30, 2023;
and 14,555,741 at December 31, 2022
1,444
1,456
Additional paid-in capital
298,133
302,763
Retained earnings
537,095
526,727
Accumulated other comprehensive loss
(195,520
)
(208,689
)
Treasury stock, at cost – 124,265 shares
at June 30, 2023, and 128,749 shares at December 31, 2022
(6,185
)
(6,279
)
Total Tompkins Financial
Corporation Shareholders’ Equity
634,967
615,978
Noncontrolling interests
1,474
1,412
Total Equity
$
636,441
$
617,390
Total Liabilities and
Equity
$
7,626,238
$
7,670,686
TOMPKINS FINANCIAL
CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
06/30/2023
06/30/2022
06/30/2023
06/30/2022
INTEREST AND DIVIDEND INCOME
Loans
$
63,527
$
52,505
$
124,369
$
103,636
Due from banks
183
64
322
105
Available-for-sale debt securities
6,618
7,063
13,361
13,833
Held-to-maturity securities
1,219
1,201
2,433
2,330
Federal Home Loan Bank and other stock
323
120
623
225
Total Interest and Dividend
Income
71,870
$
60,953
$
141,108
$
120,129
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
2,526
400
4,313
826
Other deposits
13,119
1,647
23,513
3,267
Federal funds purchased and securities
sold under agreements to repurchase
15
15
29
31
Other borrowings
4,314
629
7,111
1,129
Total Interest Expense
19,974
2,691
34,966
5,253
Net Interest Income
51,896
58,262
106,142
114,876
Less: Provision for credit loss
expense
2,253
856
1,428
336
Net Interest Income After
Credit for Credit Loss Expense
49,643
57,406
104,714
114,540
NONINTEREST INCOME
Insurance commissions and fees
8,672
8,429
18,181
17,746
Wealth management fees
4,678
4,596
9,187
9,513
Service charges on deposit accounts
1,640
1,756
3,386
3,535
Card services income
3,087
2,959
5,769
5,502
Other income
1,603
1,241
3,544
2,717
Net loss on securities transactions
(7,065
)
(37
)
(7,052
)
(84
)
Total Noninterest Income
12,615
18,944
33,015
38,929
NONINTEREST EXPENSE
Salaries and wages
25,337
24,396
49,849
47,668
Other employee benefits
6,647
6,341
13,388
12,138
Net occupancy expense of premises
3,327
3,131
6,626
6,672
Furniture and fixture expense
2,105
2,004
4,159
3,995
Amortization of intangible assets
84
219
167
437
Other operating expense
14,468
13,029
27,937
25,049
Total Noninterest Expenses
51,968
49,120
102,126
95,959
Income Before Income Tax
Expense
10,290
27,230
35,603
57,510
Income Tax Expense
1,784
6,329
7,685
13,305
Net Income Attributable to
Noncontrolling Interests and Tompkins Financial Corporation
8,506
20,901
27,918
44,205
Less: Net Income Attributable to
Noncontrolling Interests
31
32
62
63
Net Income Attributable to
Tompkins Financial Corporation
$
8,475
20,869
27,856
44,142
Basic Earnings Per Share
$
0.59
$
1.45
$
1.94
$
3.06
Diluted Earnings Per Share
$
0.59
$
1.45
$
1.94
$
3.05
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
June 30, 2023
June 30, 2022
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(QTD)
Interest
Yield/Rate
(QTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
13,585
$
183
5.40
%
$
88,094
$
64
0.29
%
Securities (1)
U.S. Government securities
1,972,719
7,304
1.49
%
2,305,102
7,746
1.35
%
State and municipal (2)
92,194
590
2.57
%
97,481
619
2.55
%
Other securities (2)
3,288
56
6.86
%
3,337
28
3.40
%
Total securities
2,068,201
7,950
1.54
%
2,405,920
8,393
1.40
%
FHLBNY and FRB stock
23,211
323
5.59
%
12,234
120
3.92
%
Total loans and leases, net of unearned
income (2)(3)
5,304,717
63,709
4.82
%
5,115,340
52,733
4.14
%
Total interest-earning assets
7,409,714
72,165
3.91
%
7,621,588
61,310
3.23
%
Other assets
226,086
209,057
Total assets
$
7,635,800
$
7,830,645
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,701,229
$
10,590
1.15
%
$
4,073,279
$
890
0.09
%
Time deposits
745,970
5,055
2.72
%
603,791
1,157
0.77
%
Total interest-bearing deposits
4,447,199
15,645
1.41
%
4,677,070
2,047
0.18
%
Federal funds purchased & securities
sold under agreements to repurchase
56,083
15
0.11
%
54,885
15
0.11
%
Other borrowings
379,744
4,314
4.56
%
169,390
629
1.49
%
Total interest-bearing
liabilities
4,883,026
19,974
1.64
%
4,901,345
2,691
0.22
%
Noninterest bearing deposits
2,004,560
2,189,132
Accrued expenses and other liabilities
97,660
100,813
Total liabilities
6,985,246
7,191,290
Tompkins Financial Corporation
Shareholders’ equity
649,097
637,896
Noncontrolling interest
1,457
1,459
Total equity
650,554
639,355
Total liabilities and equity
$
7,635,800
$
7,830,645
Interest rate spread
2.27
%
3.01
%
Net interest income/margin on earning
assets
52,191
2.83
%
58,619
3.09
%
Tax Equivalent Adjustment
(295
)
(357
)
Net interest income per consolidated
financial statements
$
51,896
$
58,262
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Year to Date Period
Ended
Year to Date Period
Ended
June 30, 2023
June 30, 2022
Average
Average
Balance
Balance
Average
(Dollar amounts in thousands)
(YTD)
Interest
(YTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
13,161
$
322
4.93
%
$
110,984
$
105
0.19
%
Securities (1)
U.S. Government securities
2,002,846
14,728
1.48
%
2,299,389
15,108
1.32
%
State and municipal (2)
92,695
1,188
2.58
%
99,602
1,267
2.57
%
Other securities (2)
3,286
110
6.70
%
3,363
51
3.06
%
Total securities
2,098,827
16,026
1.54
%
2,402,354
16,426
1.38
%
FHLBNY and FRB stock
19,998
623
6.29
%
11,172
225
4.06
%
Total loans and leases, net of unearned
income (2)(3)
5,278,145
124,744
4.77
%
5,085,808
104,088
4.13
%
Total interest-earning assets
7,410,131
141,715
3.86
%
7,610,318
120,844
3.20
%
Other assets
224,671
259,809
Total assets
$
7,634,802
$
7,870,127
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,767,032
$
19,230
1.03
%
$
4,116,870
$
1,638
0.08
%
Time deposits
710,119
8,596
2.44
%
617,616
2,455
0.80
%
Total interest-bearing deposits
4,477,151
27,826
1.25
%
4,734,486
4,093
0.17
%
Federal funds purchased & securities
sold under agreements to repurchase
56,799
29
0.10
%
59,536
31
0.11
%
Other borrowings
325,052
7,111
4.41
%
147,466
1,129
1.54
%
Total interest-bearing
liabilities
4,859,002
34,966
1.45
%
4,941,488
5,253
0.21
%
Noninterest bearing deposits
2,034,961
2,149,201
Accrued expenses and other liabilities
99,905
103,451
Total liabilities
6,993,868
7,194,140
Tompkins Financial Corporation
Shareholders’ equity
639,494
674,545
Noncontrolling interest
1,440
1,442
Total equity
640,934
675,987
Total liabilities and equity
$
7,634,802
$
7,870,127
Interest rate spread
2.41
%
2.99
%
Net interest income/margin on earning
assets
106,749
2.90
%
115,591
3.06
%
Tax Equivalent Adjustment
(607
)
(715
)
Net interest income per consolidated
financial statements
$
106,142
$
114,876
Tompkins Financial Corporation
- Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Jun-23
Mar-23
Dec-22
Sep-22
Jun-22
Dec-22
Securities
$
1,781,150
$
1,899,001
$
1,908,088
$
2,054,036
$
2,204,851
$
1,908,088
Total Loans
5,352,365
5,273,671
5,268,911
5,208,436
5,162,503
5,268,911
Allowance for credit losses
48,545
46,099
45,934
44,772
43,793
45,934
Total assets
7,626,238
7,644,371
7,670,686
7,779,941
7,842,461
7,670,686
Total deposits
6,454,651
6,509,009
6,602,295
6,936,726
6,769,521
6,602,295
Federal funds purchased and securities
sold under agreements to repurchase
50,483
63,491
56,278
55,340
50,075
56,278
Other borrowings
387,100
327,000
291,300
101,000
295,600
291,300
Total common equity
634,967
648,322
615,978
571,453
622,843
615,978
Total equity
636,441
649,765
617,390
572,959
624,318
617,390
Average Balance Sheet
Average earning assets
$
7,409,714
$
7,410,553
$
7,568,656
$
7,639,123
$
7,621,588
$
7,607,078
Average assets
7,635,800
7,633,793
7,721,335
7,853,847
7,830,645
7,828,520
Average interest-bearing liabilities
4,883,026
4,834,712
4,828,561
4,861,857
4,901,345
4,892,952
Average equity
650,554
631,208
580,720
635,324
639,354
641,726
Share data
Weighted average shares outstanding
(basic)
14,314,133
14,326,595
14,308,323
14,289,022
14,317,415
14,328,280
Weighted average shares outstanding
(diluted)
14,346,787
14,389,673
14,385,884
14,367,149
14,387,601
14,404,294
Period-end shares outstanding
14,405,503
14,519,748
14,519,831
14,483,757
14,504,604
14,519,831
Common equity book value per share
$
44.08
$
44.65
$
42.42
$
39.45
$
42.94
$
42.42
Tangible book value per share
(Non-GAAP)**
$
37.54
$
38.16
$
35.93
$
32.93
$
36.42
$
35.93
**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
$
51,896
$
54,246
$
57,294
$
58,111
$
58,262
$
230,281
(Credit) provision for credit loss expense
(5)
2,253
(825
)
1,397
1,056
856
2,789
Noninterest income
12,615
20,400
18,351
20,692
18,944
77,972
Noninterest expense (5)
51,968
50,158
50,190
49,602
49,120
195,751
Income tax expense
1,784
5,901
4,478
6,774
6,329
24,557
Net income attributable to Tompkins
Financial Corporation
8,475
19,381
19,548
21,340
20,869
85,030
Noncontrolling interests
31
31
32
31
32
126
Basic earnings per share (4)
0.59
1.35
1.36
1.49
1.45
5.92
Diluted earnings per share (4)
0.59
1.35
1.36
1.48
1.45
5.89
Nonperforming Assets
Nonaccrual loans and leases
$
31,333
$
28,424
$
28,289
$
30,013
$
24,665
$
28,289
Loans and leases 90 days past due and
accruing
34
13
25
161
62
25
Performing troubled debt
restructuring*
0
0
4,530
4,730
4,872
4,530
Total nonperforming loans and leases
31,367
28,437
32,844
34,904
29,599
32,844
OREO
36
36
152
335
122
152
Total nonperforming assets
$
31,403
$
28,473
$
32,996
$
35,239
$
29,721
$
32,996
*No amount shown for periods subsequent to
the Company's adoption of ASU 2022-02 effective January 1,
2023.
Tompkins Financial Corporation
- Summary Financial Data (Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease
portfolio
Jun-23
Mar-23
Dec-22
Sep-22
Jun-22
Dec-22
Loans and leases 30-89 days past due and
accruing
$
20,255
$
5,894
$
3,172
$
3,160
$
9,837
$
3,172
Loans and leases 90 days past due and
accruing
34
13
25
161
62
25
Total loans and leases past due and
accruing
20,289
5,907
3,197
3,321
9,899
3,197
Allowance for Credit Losses
Balance at beginning of period
$
46,099
$
45,934
$
44,772
$
43,793
$
42,126
$
42,843
Impact of adopting ASC 326
0
64
0
0
0
0
Provision (credit) for credit losses
2,419
(1,180
)
1,352
1,101
780
$
2,499
Net loan and lease (recoveries)
charge-offs
(27
)
(1,281
)
190
122
(887
)
$
(592
)
Allowance for credit losses at end of
period
$
48,545
$
46,099
$
45,934
$
44,772
$
43,793
$
45,934
Allowance for Credit Losses -
Off-Balance Sheet Exposure
Balance at beginning of period
$
3,151
$
2,796
$
2,751
$
2,796
$
2,720
$
2,506
(Credit) provision for credit losses
(166
)
355
45
(45
)
76
$
290
Allowance for credit losses at end of
period
$
2,985
$
3,151
$
2,796
$
2,751
$
2,796
$
2,796
Loan Classification - Total
Portfolio
Special Mention
$
56,305
$
39,255
$
49,752
$
66,730
$
72,270
$
49,752
Substandard
61,820
46,315
48,537
40,007
42,756
48,537
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases
0.59
%
0.54
%
0.62
%
0.67
%
0.57
%
0.62
%
Nonperforming assets/total assets
0.41
%
0.37
%
0.43
%
0.45
%
0.38
%
0.43
%
Allowance for credit losses/total loans
and leases
0.91
%
0.87
%
0.87
%
0.86
%
0.85
%
0.87
%
Allowance/nonperforming loans and
leases
154.76
%
162.11
%
139.86
%
128.27
%
147.95
%
139.85
%
Net loan and lease losses annualized/total
average loans and leases
0.00
%
(0.10
)%
0.01
%
0.01
%
(0.07
)%
(0.01
)%
Capital Adequacy
Tier 1 Capital (to average assets)
9.57
%
9.63
%
9.34
%
9.14
%
9.02
%
9.34
%
Total Capital (to risk-weighted
assets)
14.48
%
14.62
%
14.42
%
14.26
%
14.07
%
14.42
%
Profitability (period-end)
Return on average assets *
0.45
%
1.03
%
1.00
%
1.08
%
1.07
%
1.09
%
Return on average equity *
5.22
%
12.45
%
13.36
%
13.33
%
13.09
%
13.25
%
Net interest margin (TE) *
2.83
%
2.99
%
3.02
%
3.04
%
3.09
%
3.05
%
* 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 in comparison to
others in the financial services industry. 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 Tangible Book Value
Per Share (non-GAAP) to Common Equity Book Value Per Share
(GAAP)
Quarter-Ended
Year-ended
Jun-23
Mar-23
Dec-22
Sep-22
Jun-22
Dec-22
Total common equity
$
634,967
$
648,322
$
615,978
$
571,453
$
622,843
$
615,978
Less: Goodwill and intangibles
94,169
94,253
94,336
94,554
94,617
94,336
Tangible common equity (Non-GAAP)
540,798
554,069
521,642
476,899
528,226
521,642
Ending shares outstanding
14,405,503
14,519,748
14,519,831
14,483,757
14,504,604
14,519,831
Tangible book value per share
(Non-GAAP)
$
37.54
$
38.16
$
35.93
$
32.93
$
36.42
$
35.93
(1) Average balances and yields on available-for-sale securities
are based on historical amortized cost. (2) Interest income
includes the tax effects of taxable-equivalent adjustments using an
effective income tax rate of 21% in 2023 and 2022 to increase tax
exempt interest income to taxable-equivalent basis. (3) 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, 2022. (4) Earnings
per share for the full fiscal year may not equal the sum of the
quarterly earnings per share as a result of rounding of average
shares. (5) Amounts in prior periods' financial statements are
reclassified when necessary to conform to the current period's
presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230721547318/en/
Stephen S. Romaine, President & CEO Francis M. Fetsko,
Executive VP, CFO & COO Tompkins Financial Corporation (888)
503-5753
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