Tompkins Financial Corporation Reports Second Quarter Financial Results
Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.10 for the second quarter of 2024, down 6.8% from the immediate prior quarter, and up 86.4% from diluted earnings per share of $0.59 reported in the second quarter of 2023. Net income for the second quarter of 2024 was $15.7 million, down $1.2 million or 7.1% compared to the most recent prior quarter, and up $7.2 million, or 85.0%, when compared to the $8.5 million reported for the same period in 2023. The increase in diluted earnings per share and net income compared to the results for the second quarter of 2023 largely reflects the Company's sale of $80.9 million of available-for-sale securities which resulted in a $7.1 million (or $0.37 per share) loss on securities transactions in the second quarter of 2023.
For the six months ended June 30, 2024, diluted earnings per share were $2.29, up 18.0% from $1.94 for the six months ended June 30, 2023. Year-to-date net income was $32.6 million for the six month period ended June 30, 2024, up $4.7 million, or 16.9%, when compared to $27.9 million for the same six month period in 2023. The growth in year-to-date diluted earnings per share and net income relative to the year-to-date results for the same six month period in 2023 is similarly attributable to the impact caused by the loss on securities transactions described above.
Tompkins President and CEO, Stephen Romaine, commented, "Our year to date and second quarter results have been positively impacted by a stabilizing net interest margin and growth throughout our business. Year over year loans are up 7.7% and year to date noninterest income was up 33%, or 10% excluding the impact from the loss on the sale of securities in the second quarter of 2023. We have remained focused on expenses with noninterest expenses year to date lower by 2.3%. As we continue to leverage our balance sheet we are seeing strengthening operating results with stabilizing and growing revenue and lower expenses. We look forward to driving growth through quality customer relationships supported by our strong capital and liquidity."
SELECTED HIGHLIGHTS FOR THE PERIOD:
Net interest margin for the second quarter of 2024 was 2.73%, unchanged from the first quarter of 2024, and down from 2.83% for the second quarter of 2023. Total cost of funds was up 10 basis points compared to the first quarter 2024, down from a 24 basis point increase from the fourth quarter of 2023 to the first quarter of 2024. Fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the second quarter of 2024 were up $903,000 or 5.0% compared to the second quarter of 2023. Total operating expenses of $49.9 million for the second quarter of 2024 were in line with the most recent prior quarter, and down $2.0 million or 3.9% compared to the second quarter of 2023. Total loans at June 30, 2024 were up $121.3 million, or 2.2% (8.7% on an annualized basis) compared to the immediate prior quarter, and up $409.5 million, or 7.7%, from June 30, 2023. Total deposits at June 30, 2024 were $6.3 billion, down $163.7 million, or 2.5% from March 31, 2024, and $168.8 million, or 2.6%, from June 30, 2023. Loan to deposit ratio at June 30, 2024 was 91.7%, compared to 87.5% for the immediate prior quarter. Regulatory Tier 1 capital to average assets was 9.15% at June 30, 2024, up compared to 9.08% reported at March 31, 2024, and down compared to 9.57% at June 30, 2023.NET INTEREST INCOME
Net interest income was $51.0 million for the second quarter of 2024, up from $50.7 million for the first quarter of 2024, and down from $51.9 million for the second quarter of 2023. Net interest income for the quarter ended June 30, 2024 was impacted by increases in interest expense, which totaled $34.3 million for the second quarter of 2024 compared to $20.0 million for the same period in 2023, partially offset by increased interest and dividend income, which increased by $13.4 million when compared to the second quarter of 2023.
For the six months ended June 30, 2024, net interest income was $101.6 million, down $4.5 million or 4.3% when compared to the same period in 2023.
Net interest margin was 2.73% for the second quarter of 2024, unchanged from the first quarter of 2024, and down from the 2.83% reported for the second quarter of 2023. The decrease in net interest margin, when compared to the prior year, was mainly driven by higher funding costs, driven by market rates and higher borrowings due to lower deposit balances, and was partially offset by higher yields on interest earnings assets.
Average loans for the quarter ended June 30, 2024 were up $65.9 million, or 1.2%, from the first quarter of 2024, and were up $382.8 million, or 7.2%, compared to the prior year second quarter. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended June 30, 2024 was 4.56%, which was up from 4.47% for the prior quarter ended March 31, 2024, and up from 3.91% for the quarter ended June 30, 2023.
Average total deposits for the second quarter of 2024 were down $42.9 million, or 0.7%, compared to the first quarter of 2024, and down $128.3 million or 2.0% compared to the same period in 2023. The decrease compared to the prior quarter was mainly driven by seasonal deposit trends, while 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 2.27% for the second quarter of 2024 was up 10 basis points from 2.17% for the first quarter of 2024, and up 86 basis points from 1.41% for the second quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the second quarter of 2024 was 29.1% compared to 28.8% for the first quarter of 2024, and 31.1% for the quarter ended June 30, 2023. The average cost of interest-bearing liabilities for the second quarter of 2024 of 2.64% represents an increase of 13 basis points over the first quarter of 2024, and an increase of 100 basis points over the same period in 2023.
NONINTEREST INCOME
Noninterest income represented 29.9% of total revenue for the second quarter of 2024 compared to 30.4% for the first quarter of 2024, and 19.6% for the second quarter of 2023. Noninterest income of $21.8 million for the second quarter of 2024 was up $9.2 million or 72.6% compared to the same period in 2023. Year-to-date noninterest income of $43.9 million was up $10.9 million or 33.0% compared to the same period in 2023. The increase in quarterly and year-to-date noninterest income compared to the same periods in 2023 was mainly due to a $7.1 million loss on the sale of available-for-sale securities discussed above. Also included in the increase in the second quarter of 2024 over the same period prior year are fee-based revenues which included insurance commissions and fees, up $415,000, wealth management fees, up $171,000, service charges on deposit accounts, up $126,000, and card services income, up $191,000.
NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the second quarter of 2024, which was down $2.0 million or 3.9% compared to the second quarter of 2023. Year-to-date noninterest expense for the period ended June 30, 2024 was $99.8 million, a decrease of $2.3 million or 2.3% compared to the $102.1 million reported for the same period in 2023. The decrease was mainly driven by lower other expenses (legal fees, marketing expense, professional fees, and travel and meeting expense) and lower salaries, wages and other employee benefits in the second quarter of 2024 compared to the same period in 2023.
INCOME TAX EXPENSE
The provision for income tax expense was $4.9 million for an effective rate of 23.8% for the second quarter of 2024, compared to tax expense of $1.8 million and an effective rate of 17.3% for the same quarter in 2023. For the first six months of 2024, the provision for income tax expense was $10.1 million and the effective tax rate was 23.6% compared to provision expense of $7.7 million and an effective tax rate of 21.6% for the same period in 2023. Lower tax expense for both the quarter and year-to-date periods in 2023 was mainly a result of lower income associated with the loss on the sale of securities described above.
ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans and leases at June 30, 2024, unchanged from the most recent prior quarter and December 31, 2023. The ratio of the allowance to total nonperforming loans and leases was 84.94% at June 30, 2024, compared to 82.47% at March 31, 2024, and 154.76% at June 30, 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 second quarter of 2024 was $2.2 million compared to provision expense of $2.3 million for the same period in 2023. Provision for credit losses for the six months ended June 30, 2024 was $3.0 million compared to $1.4 million for the six months ended June 30, 2023. The increase in provision expense for the year-to-date period compared to the same period in 2023 was mainly driven by loan growth and changes in off balance sheet reserves driven by an increase in loan pipeline. Net charge-offs for the second quarter of 2024 were $509,000 compared to net recoveries of $27,000 reported for the same period in 2023.
Nonperforming assets represented 0.79% of total assets at June 30, 2024, down from 0.81% reported at March 31, 2024, and up compared to 0.41% at June 30, 2023. At June 30, 2024, nonperforming loans and leases totaled $62.5 million, compared to $62.7 million at March 31, 2024 and $31.4 million at June 30, 2023. The increase in nonperforming loans and leases at June 30, 2024 compared to results at June 30, 2023 was mainly due to the addition in the fourth quarter of 2023 of one relationship totaling approximately $33.3 million with two commercial real estate properties included in the office space and mixed use properties portion of the commercial real estate portfolio. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of June 30, 2024.
Special Mention and Substandard loans and leases totaled $116.2 million at June 30, 2024, compared to $118.7 million reported at March 31, 2024, and $118.1 million reported at June 30, 2023.
CAPITAL POSITION
Capital ratios at June 30, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total Capital to risk-weighted assets was 13.26% at June 30, 2024, compared to 13.43% at March 31, 2024, and 14.48% at June 30, 2023. The ratio of Tier 1 Capital to average assets was 9.15% at June 30, 2024, compared to 9.08% at March 31, 2024, and 9.57% at June 30, 2023.
LIQUIDITY POSITION
The Company's liquidity position at June 30, 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's Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access to liquidity of $1.4 billion, or 17.3% of total assets at June 30, 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 June 30, 2024 the Company had an available borrowing capacity at the FHLB of $661.8 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 June 30, 2024 the available borrowing capacity with the Federal Reserve Bank was $137.7 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at June 30, 2024, the Company maintained $553.3 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 and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. 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, war and geopolitical matters (including the war in Israel and potential for broader regional conflict and the war in Ukraine), 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) (Unaudited)
As of
As of
ASSETS
06/30/2024
12/31/2023
(Audited)
Cash and noninterest bearing balances due from banks
$
60,337
$
67,212
Interest bearing balances due from banks
10,578
12,330
Cash and Cash Equivalents
70,915
79,542
Available-for-sale debt securities, at fair value (amortized cost of $1,463,965 at June 30, 2024 and $1,548,482 at December 31, 2023)
1,317,458
1,416,650
Held-to-maturity debt securities, at amortized cost (fair value of $264,588 at June 30, 2024 and $267,455 at December 31, 2023)
312,430
312,401
Equity securities, at fair value
766
787
Total loans and leases, net of unearned income and deferred costs and fees
5,761,864
5,605,935
Less: Allowance for credit losses
53,059
51,584
Net Loans and Leases
5,708,805
5,554,351
Federal Home Loan Bank and other stock
41,382
33,719
Bank premises and equipment, net
77,279
79,687
Corporate owned life insurance
75,453
67,884
92,602
92,602
Other intangible assets, net
2,193
2,327
Accrued interest and other assets
170,239
179,799
Total Assets
$
7,869,522
$
7,819,749
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,453,049
3,484,878
Time
979,292
998,013
Noninterest bearing
1,853,555
1,916,956
Total Deposits
6,285,896
6,399,847
Federal funds purchased and securities sold under agreements to repurchase
35,989
50,996
Other borrowings
773,627
602,100
Other liabilities
97,917
96,872
Total Liabilities
$
7,193,429
$
7,149,815
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,429,124 at June 30, 2024; and 14,441,830 at December 31, 2023
1,443
1,444
Additional paid-in capital
298,647
297,183
Retained earnings
516,566
501,510
Accumulated other comprehensive loss
(135,670
)
(125,005
)
Treasury stock, at cost – 126,450 shares at June 30, 2024, and 132,097 shares at December 31, 2023
(6,356
)
(6,610
)
Total Tompkins Financial Corporation Shareholders’ Equity
674,630
668,522
Noncontrolling interests
1,463
1,412
Total Equity
$
676,093
$
669,934
Total Liabilities and Equity
$
7,869,522
$
7,819,749
TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)
Three Months Ended
Six Months Ended
06/30/2024
03/31/2024
06/30/2023
06/30/2024
06/30/2023
Loans
$
73,646
$
71,599
$
63,527
$
145,245
$
124,369
Due from banks
184
154
183
338
322
Available-for-sale debt securities
9,371
9,611
6,618
18,982
13,361
Held-to-maturity debt securities
1,219
1,218
1,219
2,437
2,433
Federal Home Loan Bank and other stock
820
601
323
1,421
623
Total Interest and Dividend Income
85,240
$
83,183
$
71,870
$
168,423
$
141,108
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more
4,048
4,010
2,526
8,058
4,313
Other deposits
21,236
20,424
13,119
41,660
23,513
Federal funds purchased and securities sold under agreements to repurchase
11
13
15
24
29
Other borrowings
8,992
8,061
4,314
17,053
7,111
Total Interest Expense
34,287
32,508
19,974
66,795
34,966
Net Interest Income
50,953
50,675
51,896
101,628
106,142
Less: Provision for credit loss expense
2,172
854
2,253
3,026
1,428
Net Interest Income After Provision for Credit Loss Expense
48,781
49,821
49,643
98,602
104,714
NONINTEREST INCOME
Insurance commissions and fees
9,087
10,259
8,672
19,346
18,181
Wealth management fees
4,849
4,937
4,678
9,786
9,187
Service charges on deposit accounts
1,766
1,796
1,640
3,562
3,386
Card services income
3,278
2,939
3,087
6,217
5,769
Other income
2,802
2,220
1,603
5,022
3,544
Net loss on securities transactions
(6
)
(14
)
(7,065
)
(20
)
(7,052
)
Total Noninterest Income
21,776
22,137
12,615
43,913
33,015
NONINTEREST EXPENSE
Salaries and wages
24,919
24,697
25,337
49,616
49,849
Other employee benefits
6,545
6,411
6,647
12,956
13,388
Net occupancy expense of premises
3,139
3,557
3,327
6,696
6,626
Furniture and fixture expense
1,910
2,125
2,105
4,035
4,159
Amortization of intangible assets
80
76
84
156
167
Other operating expense
13,349
12,991
14,468
26,340
27,937
Total Noninterest Expenses
49,942
49,857
51,968
99,799
102,126
Income Before Income Tax Expense
20,615
22,101
10,290
42,716
35,603
Income Tax Expense
4,902
5,198
1,784
10,100
7,685
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation
15,713
16,903
8,506
32,616
27,918
Less: Net Income Attributable to Noncontrolling Interests
31
31
31
62
62
Net Income Attributable to Tompkins Financial Corporation
$
15,682
16,872
8,475
32,554
27,856
Basic Earnings Per Share
$
1.10
$
1.19
$
0.59
$
2.29
$
1.94
Diluted Earnings Per Share
$
1.10
$
1.18
$
0.59
$
2.29
$
1.94
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
June 30, 2024
March 31, 2024
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
$
11,707
$
184
6.33
%
$
12,202
$
154
5.08
%
Securities (1)
U.S. Government securities
1,717,975
10,067
2.36
%
1,756,122
10,303
2.36
%
State and municipal (2)
89,518
566
2.55
%
89,886
570
2.55
%
Other securities
3,260
59
7.32
%
3,278
60
7.32
%
Total securities
1,810,753
10,692
2.38
%
1,849,286
10,933
2.38
%
FHLBNY and FRB stock
37,681
820
8.76
%
34,613
601
6.99
%
Total loans and leases, net of unearned income (2)(3)
5,687,548
73,839
5.22
%
5,621,604
71,779
5.14
%
Total interest-earning assets
7,547,689
85,535
4.56
%
7,517,705
83,467
4.47
%
Other assets
262,372
283,420
Total assets
$
7,810,061
$
7,801,125
LIABILITIES EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, money market
3,498,746
15,754
1.81
%
3,546,216
15,036
1.71
%
Time deposits
987,348
9,530
3.88
%
988,891
9,398
3.82
%
Total interest-bearing deposits
4,486,094
25,284
2.27
%
4,535,107
24,434
2.17
%
Federal funds purchased securities sold under agreements to repurchase
40,298
11
0.11
%
48,779
13
0.10
%
Other borrowings
688,611
8,992
5.25
%
622,951
8,061
5.21
%
Total interest-bearing liabilities
5,215,003
34,287
2.64
%
5,206,836
32,508
2.51
%
Noninterest bearing deposits
1,837,325
1,831,244
Accrued expenses and other liabilities
94,764
96,292
Total liabilities
7,147,092
7,134,373
Tompkins Financial Corporation Shareholders’ equity
661,523
665,333
Noncontrolling interest
1,446
1,419
Total equity
662,969
666,752
Total liabilities and equity
$
7,810,061
$
7,801,125
Interest rate spread
1.91
%
1.95
%
Net interest income (TE)/margin on earning assets
51,248
2.73
%
50,959
2.73
%
Tax Equivalent Adjustment
(295
)
(284
)
Net interest income
$
50,953
$
50,675
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
June 30, 2024
June 30, 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
$
11,707
$
184
6.33
%
$
13,585
$
183
5.40
%
Securities (1)
U.S. Government securities
1,717,975
10,067
2.36
%
1,972,719
7,304
1.49
%
State and municipal (2)
89,518
566
2.55
%
92,194
590
2.57
%
Other securities
3,260
59
7.32
%
3,288
56
6.86
%
Total securities
1,810,753
10,692
2.38
%
2,068,201
7,950
1.54
%
FHLBNY and FRB stock
37,681
820
8.76
%
23,211
323
5.59
%
Total loans and leases, net of unearned income (2)(3)
5,687,548
73,839
5.22
%
5,304,717
63,709
4.82
%
Total interest-earning assets
7,547,689
85,535
4.56
%
7,409,714
72,165
3.91
%
Other assets
262,372
226,086
Total assets
$
7,810,061
$
7,635,800
LIABILITIES EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, money market
$
3,498,746
$
15,754
1.81
%
$
3,701,229
$
10,590
1.15
%
Time deposits
987,348
9,530
3.88
%
745,970
5,055
2.72
%
Total interest-bearing deposits
4,486,094
25,284
2.27
%
4,447,199
15,645
1.41
%
Federal funds purchased securities sold under agreements to repurchase
40,298
11
0.11
%
56,083
15
0.11
%
Other borrowings
688,611
8,992
5.25
%
379,744
4,314
4.56
%
Total interest-bearing liabilities
5,215,003
34,287
2.64
%
4,883,026
19,974
1.64
%
Noninterest bearing deposits
1,837,325
2,004,560
Accrued expenses and other liabilities
94,764
97,660
Total liabilities
7,147,092
6,985,246
Tompkins Financial Corporation Shareholders’ equity
661,523
649,097
Noncontrolling interest
1,446
1,457
Total equity
662,969
650,554
Total liabilities and equity
$
7,810,061
$
7,635,800
Interest rate spread
1.91
%
2.27
%
Net interest income (TE)/margin on earning assets
51,248
2.73
%
52,191
2.83
%
Tax Equivalent Adjustment
(295
)
(295
)
Net interest income
$
50,953
$
51,896
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Year to Date Period Ended
Year to Date Period Ended
June 30, 2024
June 30, 2023
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(YTD)
Interest
Yield/Rate
(YTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks
$
11,955
$
338
5.69
%
$
13,161
$
322
4.93
%
Securities (1)
U.S. Government securities
1,737,049
20,370
2.36
%
2,002,846
14,728
1.48
%
State and municipal (2)
89,702
1,137
2.55
%
92,695
1,188
2.58
%
Other securities
3,269
119
7.32
%
3,286
110
6.70
%
Total securities
1,830,020
21,626
2.38
%
2,098,827
16,026
1.54
%
FHLBNY and FRB stock
36,147
1,421
7.90
%
19,998
623
6.29
%
Total loans and leases, net of unearned income (2)(3)
5,654,576
145,616
5.18
%
5,278,145
124,744
4.77
%
Total interest-earning assets
7,532,698
169,001
4.51
%
7,410,131
141,715
3.86
%
Other assets
272,895
224,671
Total assets
$
7,805,593
$
7,634,802
LIABILITIES EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, money market
$
3,522,481
$
30,790
1.76
%
$
3,767,032
$
19,230
1.03
%
Time deposits
988,119
18,928
3.85
%
710,119
8,596
2.44
%
Total interest-bearing deposits
4,510,600
49,718
2.22
%
4,477,151
27,826
1.25
%
Federal funds purchased securities sold under agreements to repurchase
44,538
24
0.11
%
56,799
29
0.10
%
Other borrowings
655,781
17,053
5.23
%
325,052
7,111
4.41
%
Total interest-bearing liabilities
5,210,919
66,795
2.58
%
4,859,002
34,966
1.45
%
Noninterest bearing deposits
1,834,284
2,034,961
Accrued expenses and other liabilities
95,529
99,905
Total liabilities
7,140,732
6,993,868
Tompkins Financial Corporation Shareholders’ equity
663,428
639,494
Noncontrolling interest
1,433
1,440
Total equity
664,861
640,934
Total liabilities and equity
$
7,805,593
$
7,634,802
Interest rate spread
1.93
%
2.41
%
Net interest income (TE)/margin on earning assets
102,206
2.73
%
106,749
2.90
%
Tax Equivalent Adjustment
(578
)
(607
)
Net interest income
$
101,628
$
106,142
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Jun-24
Mar-24
Dec-23
Sep-23
Jun-23
Dec-23
Securities
$
1,630,654
$
1,679,542
$
1,729,838
$
1,701,636
$
1,781,150
$
1,729,838
Total Loans
5,761,864
5,640,524
5,605,935
5,434,860
5,352,365
5,605,935
Allowance for credit losses
53,059
51,704
51,584
49,336
48,545
51,584
Total assets
7,869,522
7,778,034
7,819,749
7,691,162
7,626,238
7,819,749
Total deposits
6,285,896
6,449,616
6,399,847
6,623,436
6,454,651
6,399,847
Federal funds purchased and securities sold under agreements to repurchase
35,989
43,681
50,996
56,120
50,483
50,996
Other borrowings
773,627
522,600
602,100
296,800
387,100
602,100
Total common equity
674,630
667,906
668,522
610,851
634,967
668,522
Total equity
676,093
669,338
669,934
612,356
636,441
669,934
Average Balance Sheet
Average earning assets
$
7,547,689
$
7,517,705
$
7,407,976
$
7,405,434
$
7,409,714
$
7,408,404
Average assets
7,810,061
7,801,125
7,666,982
7,629,876
7,635,800
7,641,672
Average interest-bearing liabilities
5,215,003
5,206,836
5,020,544
4,902,930
4,883,026
4,910,792
Average equity
662,969
666,752
622,280
634,980
650,554
634,732
Share data
Weighted average shares outstanding (basic)
14,214,574
14,211,910
14,194,503
14,185,763
14,314,133
14,254,661
Weighted average shares outstanding (diluted)
14,239,626
14,238,357
14,246,024
14,224,748
14,346,787
14,301,221
Period-end shares outstanding
14,395,204
14,405,019
14,405,920
14,350,177
14,405,503
14,405,920
Common equity book value per share
$
46.86
$
46.37
$
46.41
$
42.57
$
44.08
$
46.41
Tangible book value per share (Non-GAAP)**
$
40.35
$
39.85
$
39.88
$
36.01
$
37.54
$
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
$
50,953
$
50,675
$
52,359
$
51,013
$
51,896
$
209,514
Provision for credit loss expense (5)
2,172
854
1,761
1,150
2,253
4,339
Noninterest income
21,776
22,137
18,850
(41,624
)
12,615
10,241
Noninterest expense (5)
49,942
49,857
51,300
49,866
51,968
203,292
Income tax expense/(benefit)
4,902
5,198
3,114
(8,304
)
1,784
2,495
Net income/(loss) attributable to Tompkins Financial Corporation
15,682
16,872
15,003
(33,354
)
8,475
9,505
Noncontrolling interests
31
31
31
31
31
124
Basic earnings (loss) per share (4)
1.10
1.19
1.06
(2.35
)
0.59
0.66
Diluted earnings (loss) per share (4)
1.10
1.18
1.05
(2.35
)
0.59
0.66
Nonperforming Assets
Nonaccrual loans and leases
$
62,253
$
62,544
$
62,165
$
31,381
$
31,333
$
62,165
Loans and leases 90 days past due and accruing
215
151
101
52
34
101
Total nonperforming loans and leases
62,468
62,695
62,266
31,433
31,367
62,266
OREO
80
0
131
0
36
131
Total nonperforming assets
$
62,548
$
62,695
$
62,397
$
31,433
$
31,403
$
62,397
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease portfolio
Jun-24
Mar-24
Dec-23
Sep-23
Jun-23
Dec-23
Loans and leases 30-89 days past due and accruing
$
5,286
$
8,015
$
4,210
$
40,893
$
20,255
$
4,210
Loans and leases 90 days past due and accruing
215
151
101
52
34
101
Total loans and leases past due and accruing
5,501
8,166
4,311
40,945
20,289
4,311
Allowance for Credit Losses
Balance at beginning of period
$
51,704
$
51,584
$
49,336
$
48,545
$
46,099
$
45,934
Impact of adopting ASC 326
0
0
0
0
0
64
Provision for credit losses
1,864
348
2,658
968
2,419
$
4,865
Net loan and lease charge-offs (recoveries)
509
228
410
177
(27
)
$
(721
)
Allowance for credit losses at end of period
$
53,059
$
51,704
$
51,584
$
49,336
$
48,545
$
51,584
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period
$
2,776
$
2,270
$
3,167
$
2,985
$
3,151
$
2,796
Provision (credit) for credit losses
308
506
(897
)
182
(166
)
$
(526
)
Allowance for credit losses at end of period
$
3,084
$
2,776
$
2,270
$
3,167
$
2,985
$
2,270
Loan Classification - Total Portfolio
Special Mention
$
48,712
$
46,302
$
50,368
$
65,993
$
56,305
$
50,368
Substandard
67,509
72,412
72,717
56,947
61,820
72,717
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases
1.08
%
1.11
%
1.11
%
0.58
%
0.59
%
1.11
%
Nonperforming assets/total assets
0.79
%
0.81
%
0.80
%
0.41
%
0.41
%
0.80
%
Allowance for credit losses/total loans and leases
0.92
%
0.92
%
0.92
%
0.91
%
0.91
%
0.92
%
Allowance/nonperforming loans and leases
84.94
%
82.47
%
82.84
%
156.96
%
154.76
%
82.84
%
Net loan and lease losses (recoveries) annualized/total average loans and leases
0.04
%
0.02
%
0.03
%
0.01
%
0.00
%
(0.01
)%
Capital Adequacy
Tier 1 Capital (to average assets)
9.15
%
9.08
%
9.08
%
9.01
%
9.57
%
9.08
%
Total Capital (to risk-weighted assets)
13.26
%
13.43
%
13.36
%
13.46
%
14.48
%
13.36
%
Profitability (period-end)
Return on average assets *
0.81
%
0.87
%
0.78
%
(1.73
)%
0.45
%
0.12
%
Return on average equity *
9.51
%
10.18
%
9.56
%
(20.84
)%
5.22
%
1.50
%
Net interest margin (TE) *
2.73
%
2.73
%
2.82
%
2.75
%
2.83
%
2.84
%
Average yield on interest-earning assets*
4.56
%
4.47
%
4.34
%
4.06
%
3.91
%
4.03
%
Average cost of deposits*
1.61
%
1.54
%
1.43
%
1.20
%
0.97
%
1.09
%
Average cost of funds*
1.96
%
1.86
%
1.62
%
1.41
%
1.16
%
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
Jun-24
Mar-24
Dec-23
Sep-23
Jun-23
Dec-23
Total common equity
$
674,630
$
667,906
$
668,522
$
610,851
$
634,967
$
668,522
Less: Goodwill and intangibles
93,847
93,926
94,003
94,086
94,169
94,003
Tangible common equity (Non-GAAP)
580,783
573,980
574,519
516,765
540,798
574,519
Ending shares outstanding
14,395,204
14,405,019
14,405,920
14,350,177
14,405,503
14,405,920
Tangible book value per share (Non-GAAP)
$
40.35
$
39.85
$
39.88
$
36.01
$
37.54
$
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.
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