Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company")
reported diluted earnings per share of $1.18 for the first quarter
of 2024, up 12.4% compared to the immediate prior quarter, and down
12.6% from diluted earnings per share of $1.35 reported in the
first quarter of 2023.
Net income for the first quarter of 2024 was $16.9 million, up
12.5% compared to the immediate prior quarter, and down 13.0% from
the $19.4 million reported for the same period in 2023. The
decrease in net income from the first quarter of 2023 was mainly a
result of lower net interest income, driven by increased funding
costs and increased provision for credit loss expense. Decreases in
net income were partially offset by growth in fee-based revenues
and lower operating expenses year-over-year.
Tompkins President and CEO, Stephen Romaine, commented, "In the
first quarter we saw positive earnings momentum and continue to be
well positioned with strong capital and liquidity. For the quarter
we saw continued loan growth with a year-over-year increase of
7.0%, moderation in deposit cost increases, and 8.5% growth in
noninterest income. We remain focused on noninterest expenses,
which were lower in the first quarter compared to prior year. As
the industry challenges continue in light of the current economic
environment, we plan to leverage the strength of our balance sheet
and drive growth through quality customer relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Net interest margin for the first quarter of 2024 was 2.73%,
compared to 2.82% for the fourth quarter of 2023, and 2.99% for the
first quarter of 2023.
- Average cost of deposits were up 11 basis points compared to
the fourth quarter 2023, down from a 23 basis point increase from
the third quarter to the fourth quarter 2023.
- Fee-based services (insurance, wealth management, service
charges on deposit accounts and cards) revenues for the first
quarter of 2024 were up $3.1 million or 18.4% compared to the
fourth quarter of 2023, and $1.5 million or 8.1% over the first
quarter of 2023.
- Total operating expenses of $49.9 million for the first quarter
of 2024 were down $1.4 million or 2.8% compared to the compared to
the fourth quarter of 2023, and $301,000 or 0.6% from the first
quarter of 2023.
- Total loans at March 31, 2024 were up $34.6 million, or 0.6%
(2.5% on an annualized basis), compared to the immediate prior
quarter, and up $366.9 million, or 7.0%, from March 31, 2023.
- Total deposits at March 31, 2024 were $6.4 billion, up $49.8
million, or 0.8% (3.1% on an annualized basis), from December 31,
2023, and down $59.4 million, or 0.9%, from March 31, 2023.
- Loan to deposit ratio was 87.5%, compared to 87.6% for the
immediate prior quarter.
- Regulatory Tier 1 capital to average assets was 9.08% at March
31, 2024, unchanged from December 31, 2023, and down compared to
9.63% at March 31, 2023.
NET INTEREST INCOME
Net interest income was $50.7 million for the first quarter of
2024, down from $52.4 million for the fourth quarter of 2023, and
$54.2 million for the first quarter of 2023. Net interest income
for the quarter ended March 31, 2024 was impacted by increases in
interest expense, which totaled $32.5 million for the first quarter
of 2024 compared to $15.0 million for the same period in 2023,
partially offset by increased interest and dividend income, which
increased by $13.9 million when compared to the first quarter of
2023.
Net interest margin was 2.73% for the first quarter of 2024,
compared to 2.82% reported for the fourth quarter of 2023, and
2.99% for the first quarter of 2023. The decrease in margin from
the fourth quarter of 2023 was due to higher funding costs, driven
by market rates and higher borrowings due to seasonal deposit
changes outpacing increases on interest earning asset yields and
growth in average loan balances.
Average loans for the quarter ended March 31, 2024 were up
$134.9 million, or 2.5%, from the fourth quarter of 2023, and were
up $370.3 million, or 7.1%, compared to the quarter ended March 31,
2023. The increase in average loans over both prior periods was
mainly in the commercial real estate portfolio. The average yield
on interest-earning assets for the quarter ended March 31, 2024 was
4.47%, which was up from 4.34% for the quarter ended December 31,
2023, and up from 3.81% for the quarter ended March 31, 2023.
Average total deposits for the first quarter of 2024 were down
$123.9 million, or 1.9%, compared to the fourth quarter of 2023,
while period end balances were up $49.8 million or 0.8% compared to
the fourth quarter of 2023 driven by seasonal deposit trends.
Average deposits for the quarter were down $206.8 million, or 3.1%,
compared to the same period in 2023. The decrease compared to the
prior year was largely driven by inflation and persistent rate
competition for deposits due to the current interest rate
environment and tightening monetary policy. The cost of
interest-bearing deposits of 2.17% for the first quarter of 2024,
was up 13 basis points from 2.04% for the fourth quarter of 2023,
and up 107 basis points from 1.10% for the first quarter of 2023.
The ratio of average noninterest bearing deposits to average total
deposits for the first quarter of 2024 was 28.8% compared to 29.6%
for the fourth quarter of 2023, and 31.4% for the quarter ended
March 31, 2023. The average cost of interest-bearing liabilities
for the first quarter of 2024 of 2.51% represents an increase of 26
basis points over the fourth quarter of 2023, and an increase of
125 basis points over the same period in 2023.
NONINTEREST INCOME
Noninterest income of $22.1 million for the first quarter of
2024 was up $1.7 million or 8.5% compared to the same period in
2023. The increase was mainly due to increases in fee-based
revenues which included insurance commissions and fees, up
$750,000, wealth management fees, up $428,000 and card services
income, up $257,000. Noninterest income represented 30.4% of total
revenue at March 31, 2024, compared to 26.5% at December 31, 2023,
and 27.3% at March 31, 2023.
NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the first quarter of
2024, which was down $301,000 or 0.6% compared to the first quarter
of 2023. The decrease was mainly driven by lower other expenses
(legal fees, marketing expense, and travel and meeting expense) and
lower salaries, wages and other employee benefits in the first
quarter of 2024 compared to the same period in 2023.
INCOME TAX EXPENSE
The provision for income tax expense of $5.2 million for an
effective rate of 23.5% for the first quarter of 2024, compared to
tax expense of $3.1 million and an effective rate of 17.2% for the
fourth quarter of 2023, and $5.9 million and an effective rate of
23.3% for the same quarter in 2023.
ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans
and leases at March 31, 2024, in line with December 31, 2023, and
up from 0.87% at March 31, 2023. The ratio of the allowance to
total nonperforming loans and leases was 82.47% at March 31, 2024,
compared to 82.84% at December 31, 2023 and 162.11% at March 31,
2023. The decrease in the ratio compared to the same prior year
period was due to the increase in nonperforming loans and leases
discussed in more detail below.
Provision for credit losses for the first quarter of 2024 was
$854,000 compared to a credit of $825,000 for the same period in
2023. The increase in provision expense for the first quarter of
2024 was mainly driven by increased off-balance sheet exposures
related to growth in commercial loan pipeline, loan growth, and
changes in asset quality. The provision credit in the first quarter
of 2023 was largely driven by significant net recoveries. Net
charge-offs for the first quarter of 2024 were $228,000 compared to
net recoveries of $1.3 million reported for the same period in
2023.
Nonperforming assets represented 0.81% of total assets at March
31, 2024, up from 0.80% reported at December 31, 2023 and 0.37% at
March 31, 2023. At March 31, 2024, nonperforming loans and leases
totaled $62.7 million, compared to $62.3 million at December 31,
2023 and $28.4 million at March 31, 2023. The increase in
nonperforming loans at March 31, 2024 compared to the same period
in 2023, was mainly due to the addition of one relationship with
two commercial real estate properties totaling approximately $33.8
million included in the office space and mixed use properties
portion of the commercial real estate portfolio during the fourth
quarter of 2023. The Company believes that the existing collateral
securing the loans is sufficient to cover the exposure as of March
31, 2024.
Special Mention and Substandard loans and leases totaled $118.7
million at March 31, 2024, compared to $123.1 million reported at
December 31, 2023, and $85.6 million reported at March 31,
2023.
CAPITAL POSITION
Capital ratios at March 31, 2024 remained well above the
regulatory minimums for well-capitalized institutions. The ratio of
total capital to risk-weighted assets was 13.43% at March 31, 2024,
compared to 13.36% at December 31, 2023, and 14.62% at March 31,
2023. The ratio of Tier 1 capital to average assets was 9.08% at
March 31, 2024, unchanged from the most recent prior quarter, and
down compared to 9.63% at March 31, 2023.
LIQUIDITY POSITION
The Company's liquidity position at March 31, 2024 was stable
and consistent with the immediately prior quarter. 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 Federal Home Loan Banks (FHLB) advances. The Company maintains
ready access liquidity of $1.5 billion, or 19.3% of total assets at
March 31, 2024. As a member of the FHLB, the Company can use
certain unencumbered mortgage-related assets and securities to
secure borrowings from the FHLB. At March 31, 2024 the Company had
an available borrowing capacity at the FHLB of $773.4 million.
Through various programs at the Federal Reserve Bank, the Company
has the ability to use certain loans and securities to secure
borrowings from the Federal Reserve Bank's Discount Window. At
March 31, 2024 the available borrowing capacity with the Federal
Reserve Bank was $138 million, secured by loans. In addition to the
available borrowing lines at the FHLB and Federal Reserve Bank, at
March 31, 2024, the Company maintained $579.6 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", "commit", or "anticipate", the negative and other
variations of these terms and other similar words. Examples of
forward-looking statements may include statements regarding the
sufficiency of existing collateral to cover exposure related to
nonperforming loans, and the strength of our balance sheet.
Forward-looking statements are made based on management’s
expectations and beliefs concerning future events impacting the
Company and are subject to 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 other sources of liquidity; gross
domestic product growth and inflation trends; 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, including the Dodd-Frank Act, and
state and local government mandates; 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; cybersecurity 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; the ability to access
financial resources in the amounts, at the times, and on the terms
required to support the Company's future businesses; and the
economic impact of national and global events, including the
response to bank failures, the wars in Ukraine and Israel,
widespread protests, civil unrest, political uncertainty, and
pandemics or other public health crises. 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
03/31/2024
12/31/2023
(Audited)
Cash and noninterest bearing balances due
from banks
$
47,236
$
67,212
Interest bearing balances due from
banks
9,905
12,330
Cash and Cash
Equivalents
57,141
79,542
Available-for-sale debt securities, at
fair value (amortized cost of $1,511,471 at March 31, 2024 and
$1,548,482 at December 31, 2023)
1,366,355
1,416,650
Held-to-maturity debt securities, at
amortized cost (fair value of $265,102 at March 31, 2024 and
$267,455 at December 31, 2023)
312,415
312,401
Equity securities, at fair value
772
787
Total loans and leases, net of unearned
income and deferred costs and fees
5,640,524
5,605,935
Less: Allowance for credit losses
51,704
51,584
Net Loans and Leases
5,588,820
5,554,351
Federal Home Loan Bank and other stock
30,103
33,719
Bank premises and equipment, net
78,158
79,687
Corporate owned life insurance
74,730
67,884
Goodwill
92,602
92,602
Other intangible assets, net
2,247
2,327
Accrued interest and other assets
174,691
179,799
Total Assets
$
7,778,034
$
7,819,749
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,646,960
3,484,878
Time
974,354
998,013
Noninterest bearing
1,828,302
1,916,956
Total Deposits
6,449,616
6,399,847
Federal funds purchased and securities
sold under agreements to repurchase
43,681
50,996
Other borrowings
522,600
602,100
Other liabilities
92,799
96,872
Total Liabilities
$
7,108,696
$
7,149,815
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,440,029 at March 31, 2024;
and 14,441,830 at December 31, 2023
1,444
1,444
Additional paid-in capital
297,790
297,183
Retained earnings
509,668
501,510
Accumulated other comprehensive loss
(134,816
)
(125,005
)
Treasury stock, at cost – 123,577 shares
at March 31, 2024, and 132,097 shares at December 31, 2023
(6,180
)
(6,610
)
Total Tompkins Financial
Corporation Shareholders’ Equity
667,906
668,522
Noncontrolling interests
1,432
1,412
Total Equity
$
669,338
$
669,934
Total Liabilities and
Equity
$
7,778,034
$
7,819,749
TOMPKINS FINANCIAL
CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
03/31/2024
12/31/2023
03/31/2023
INTEREST AND DIVIDEND INCOME
Loans
$
71,599
$
69,035
$
60,842
Due from banks
154
227
139
Available-for-sale debt securities
9,611
9,717
6,743
Held-to-maturity debt securities
1,218
1,222
1,214
Federal Home Loan Bank and other stock
601
584
300
Total Interest and Dividend
Income
83,183
$
80,785
$
69,238
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
4,010
3,949
1,788
Other deposits
20,424
19,526
10,394
Federal funds purchased and securities
sold under agreements to repurchase
13
14
14
Other borrowings
8,061
4,937
2,796
Total Interest Expense
32,508
28,426
14,992
Net Interest Income
50,675
52,359
54,246
Less: Provision (credit) for
credit loss expense
854
1,761
(825
)
Net Interest Income After
Provision (credit) for Credit Loss Expense
49,821
50,598
55,071
NONINTEREST INCOME
Insurance commissions and fees
10,259
7,773
9,509
Wealth management fees
4,937
4,422
4,509
Service charges on deposit accounts
1,796
1,773
1,746
Card services income
2,939
2,859
2,682
Other income
2,220
1,977
1,941
Net (loss) gain on securities
transactions
(14
)
46
13
Total Noninterest Income
22,137
18,850
20,400
NONINTEREST EXPENSE
Salaries and wages
24,697
23,710
24,512
Other employee benefits
6,411
6,626
6,741
Net occupancy expense of premises
3,557
3,544
3,299
Furniture and fixture expense
2,125
2,425
2,054
Amortization of intangible assets
76
84
83
Other operating expense
12,991
14,911
13,469
Total Noninterest Expenses
49,857
51,300
50,158
Income Before Income Tax
Expense
22,101
18,148
25,313
Income Tax Expense
5,198
3,114
5,901
Net Income Attributable to
Noncontrolling Interests and Tompkins Financial Corporation
16,903
15,034
19,412
Less: Net Income Attributable to
Noncontrolling Interests
31
31
31
Net Income Attributable to
Tompkins Financial Corporation
$
16,872
15,003
19,381
Basic Earnings Per Share
$
1.19
$
1.06
$
1.35
Diluted Earnings Per Share
$
1.18
$
1.05
$
1.35
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
March 31, 2024
December 31, 2023
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
$
12,202
$
154
5.08
%
$
14,351
$
227
6.28
%
Securities (1)
U.S. Government securities
1,756,122
10,303
2.36
%
1,789,043
10,411
2.31
%
State and municipal (2)
89,886
570
2.55
%
90,070
574
2.53
%
Other securities
3,278
60
7.32
%
3,242
60
7.37
%
Total securities
1,849,286
10,933
2.38
%
1,882,355
11,045
2.33
%
FHLBNY and FRB stock
34,613
601
6.99
%
24,555
584
9.44
%
Total loans and leases, net of unearned
income (2)(3)
5,621,604
71,779
5.14
%
5,486,715
69,197
5.00
%
Total interest-earning assets
7,517,705
83,467
4.47
%
7,407,976
81,053
4.34
%
Other assets
283,420
259,006
Total assets
$
7,801,125
$
7,666,982
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
3,546,216
15,036
1.71
%
3,643,919
14,915
1.62
%
Time deposits
988,891
9,398
3.82
%
925,790
8,560
3.67
%
Total interest-bearing deposits
4,535,107
24,434
2.17
%
4,569,709
23,475
2.04
%
Federal funds purchased & securities
sold under agreements to repurchase
48,779
13
0.10
%
51,903
14
0.10
%
Other borrowings
622,951
8,061
5.21
%
398,932
4,937
4.91
%
Total interest-bearing
liabilities
5,206,836
32,508
2.51
%
5,020,544
28,426
2.25
%
Noninterest bearing deposits
1,831,244
1,920,510
Accrued expenses and other liabilities
96,292
103,648
Total liabilities
7,134,373
7,044,702
Tompkins Financial Corporation
Shareholders’ equity
665,333
620,789
Noncontrolling interest
1,419
1,491
Total equity
666,752
622,280
Total liabilities and equity
$
7,801,125
$
7,666,982
Interest rate spread
1.95
%
2.09
%
Net interest income/margin on earning
assets
50,959
2.73
%
52,627
2.82
%
Tax Equivalent Adjustment
(284
)
(268
)
Net interest income per consolidated
financial statements
$
50,675
$
52,359
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
March 31, 2024
March 31, 2023
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
$
12,202
$
154
5.08
%
$
12,733
$
139
4.42
%
Securities (1)
U.S. Government securities
1,756,122
10,303
2.36
%
2,033,307
7,424
1.48
%
State and municipal (2)
89,886
570
2.55
%
93,201
599
2.60
%
Other securities
3,278
60
7.32
%
3,284
53
6.55
%
Total securities
1,849,286
10,933
2.38
%
2,129,792
8,076
1.54
%
FHLBNY and FRB stock
34,613
601
6.99
%
16,750
300
7.26
%
Total loans and leases, net of unearned
income (2)(3)
5,621,604
71,779
5.14
%
5,251,278
61,034
4.71
%
Total interest-earning assets
7,517,705
83,467
4.47
%
7,410,553
69,549
3.81
%
Other assets
283,420
223,240
Total assets
$
7,801,125
$
7,633,793
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,546,216
$
15,036
1.71
%
$
3,833,566
$
8,641
0.91
%
Time deposits
988,891
9,398
3.82
%
673,871
3,541
2.13
%
Total interest-bearing deposits
4,535,107
24,434
2.17
%
4,507,437
12,182
1.10
%
Federal funds purchased & securities
sold under agreements to repurchase
48,779
13
0.10
%
57,523
14
0.10
%
Other borrowings
622,951
8,061
5.21
%
269,752
2,796
4.20
%
Total interest-bearing
liabilities
5,206,836
32,508
2.51
%
4,834,712
14,992
1.26
%
Noninterest bearing deposits
1,831,244
2,065,701
Accrued expenses and other liabilities
96,292
102,172
Total liabilities
7,134,373
7,002,585
Tompkins Financial Corporation
Shareholders’ equity
665,333
629,784
Noncontrolling interest
1,419
1,424
Total equity
666,752
631,208
Total liabilities and equity
$
7,801,125
$
7,633,793
Interest rate spread
1.95
%
2.55
%
Net interest income/margin on earning
assets
50,959
2.73
%
54,557
2.99
%
Tax Equivalent Adjustment
(284
)
(311
)
Net interest income per consolidated
financial statements
$
50,675
$
54,246
Tompkins Financial Corporation - Summary Financial Data
(Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Mar-24
Dec-23
Sep-23
Jun-23
Mar-23
Dec-23
Securities
$
1,679,542
$
1,729,838
$
1,701,636
$
1,781,150
$
1,899,001
$
1,729,838
Total Loans
5,640,524
5,605,935
5,434,860
5,352,365
5,273,671
5,605,935
Allowance for credit losses
51,704
51,584
49,336
48,545
46,099
51,584
Total assets
7,778,034
7,819,749
7,691,162
7,626,238
7,644,371
7,819,749
Total deposits
6,449,616
6,399,847
6,623,436
6,454,651
6,509,009
6,399,847
Federal funds purchased and securities
sold under agreements to repurchase
43,681
50,996
56,120
50,483
63,491
50,996
Other borrowings
522,600
602,100
296,800
387,100
327,000
602,100
Total common equity
667,906
668,522
610,851
634,967
648,322
668,522
Total equity
669,338
669,934
612,356
636,441
649,765
669,934
Average Balance Sheet
Average earning assets
$
7,517,705
$
7,407,976
$
7,405,434
$
7,409,714
$
7,410,553
$
7,408,404
Average assets
7,801,125
7,666,982
7,629,876
7,635,800
7,633,793
7,641,672
Average interest-bearing liabilities
5,206,836
5,020,544
4,902,930
4,883,026
4,834,712
4,910,792
Average equity
666,752
622,280
634,980
650,554
631,208
634,732
Share data
Weighted average shares outstanding
(basic)
14,211,910
14,194,503
14,185,763
14,314,133
14,326,595
14,254,661
Weighted average shares outstanding
(diluted)
14,238,357
14,246,024
14,224,748
14,346,787
14,389,673
14,301,221
Period-end shares outstanding
14,405,019
14,405,920
14,350,177
14,405,503
14,519,748
14,405,920
Common equity book value per share
$
46.37
$
46.41
$
42.57
$
44.08
$
44.65
$
46.41
Tangible book value per share
(Non-GAAP)**
$
39.85
$
39.88
$
36.01
$
37.54
$
38.16
$
39.88
**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
$
50,675
$
52,359
$
51,013
$
51,896
$
54,246
$
209,514
Provision (credit) for credit loss expense
(5)
854
1,761
1,150
2,253
(825
)
4,339
Noninterest income
22,137
18,850
(41,624
)
12,615
20,400
10,241
Noninterest expense (5)
49,857
51,300
49,866
51,968
50,158
203,292
Income tax expense/(benefit)
5,198
3,114
(8,304
)
1,784
5,901
2,495
Net income/(loss) attributable to Tompkins
Financial Corporation
16,872
15,003
(33,354
)
8,475
19,381
9,505
Noncontrolling interests
31
31
31
31
31
124
Basic earnings (loss) per share (4)
1.19
1.06
(2.35
)
0.59
1.35
0.66
Diluted earnings (loss) per share (4)
1.18
1.05
(2.35
)
0.59
1.35
0.66
Nonperforming Assets
Nonaccrual loans and leases
$
62,544
$
62,165
$
31,381
$
31,333
$
28,424
$
62,165
Loans and leases 90 days past due and
accruing
151
101
52
34
13
101
Performing troubled debt
restructuring*
0
0
0
0
0
0
Total nonperforming loans and leases
62,695
62,266
31,433
31,367
28,437
62,266
OREO
0
131
0
36
36
131
Total nonperforming assets
$
62,695
$
62,397
$
31,433
$
31,403
$
28,473
$
62,397
*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
Mar-24
Dec-23
Sep-23
Jun-23
Mar-23
Dec-23
Loans and leases 30-89 days past due and
accruing
$
8,015
$
4,210
$
40,893
$
20,255
$
5,894
$
4,210
Loans and leases 90 days past due and
accruing
151
101
52
34
13
101
Total loans and leases past due and
accruing
8,166
4,311
40,945
20,289
5,907
4,311
Allowance for Credit Losses
Balance at beginning of period
$
51,584
$
49,336
$
48,545
$
46,099
$
45,934
$
45,934
Impact of adopting ASC 326
0
0
0
0
64
64
Provision (credit) for credit losses
348
2,658
968
2,419
(1,180
)
$
4,865
Net loan and lease charge-offs
(recoveries)
228
410
177
(27
)
(1,281
)
$
(721
)
Allowance for credit losses at end of
period
$
51,704
$
51,584
$
49,336
$
48,545
$
46,099
$
51,584
Allowance for Credit Losses -
Off-Balance Sheet Exposure
Balance at beginning of period
$
2,270
$
3,167
$
2,985
$
3,151
$
2,796
$
2,796
Provision (credit) for credit losses
506
(897
)
182
(166
)
355
$
(526
)
Allowance for credit losses at end of
period
$
2,776
$
2,270
$
3,167
$
2,985
$
3,151
$
2,270
Loan Classification - Total
Portfolio
Special Mention
$
46,302
$
50,368
$
65,993
$
56,305
$
39,255
$
50,368
Substandard
72,412
72,717
56,947
61,820
46,315
72,717
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases
1.11
%
1.11
%
0.58
%
0.59
%
0.54
%
1.11
%
Nonperforming assets/total assets
0.81
%
0.80
%
0.41
%
0.41
%
0.37
%
0.80
%
Allowance for credit losses/total loans
and leases
0.92
%
0.92
%
0.91
%
0.91
%
0.87
%
0.92
%
Allowance/nonperforming loans and
leases
82.47
%
82.84
%
156.96
%
154.76
%
162.11
%
82.84
%
Net loan and lease losses (recoveries)
annualized/total average loans and leases
0.02
%
0.03
%
0.01
%
0.00
%
(0.10
)%
(0.01
)%
Capital Adequacy
Tier 1 Capital (to average assets)
9.08
%
9.08
%
9.01
%
9.57
%
9.63
%
9.08
%
Total Capital (to risk-weighted
assets)
13.43
%
13.36
%
13.46
%
14.48
%
14.62
%
13.36
%
Profitability (period-end)
Return on average assets *
0.87
%
0.78
%
(1.73
)%
0.45
%
1.03
%
0.12
%
Return on average equity *
10.18
%
9.56
%
(20.84
)%
5.22
%
12.45
%
1.50
%
Net interest margin (TE) *
2.73
%
2.82
%
2.75
%
2.83
%
2.99
%
2.84
%
Average yield on interest-earning
assets*
4.47
%
4.34
%
4.06
%
3.91
%
3.81
%
4.03
%
Average cost of deposits*
1.54
%
1.43
%
1.20
%
0.97
%
0.75
%
1.09
%
Average cost of funds*
1.86
%
1.62
%
1.41
%
1.16
%
0.88
%
1.27
%
* 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 principals (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
Mar-24
Dec-23
Sep-23
Jun-23
Mar-23
Dec-23
Total common equity
$
667,906
$
668,522
$
610,851
$
634,967
$
648,322
$
668,522
Less: Goodwill and intangibles
93,926
94,003
94,086
94,169
94,253
94,003
Tangible common equity (Non-GAAP)
573,980
574,519
516,765
540,798
554,069
574,519
Ending shares outstanding
14,405,019
14,405,920
14,350,177
14,405,503
14,519,748
14,405,920
Tangible book value per share
(Non-GAAP)
$
39.85
$
39.88
$
36.01
$
37.54
$
38.16
$
39.88
(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 2024 and 2023 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, 2023. (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/20240426028481/en/
For more information: Stephen S. Romaine, President &
CEO Matthew Tomazin, Executive VP, CFO & Treasurer Tompkins
Financial Corporation (888) 503-5753
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