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Tompkins Financial Corporation Reports Second Quarter Earnings

Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.45 for the second quarter of 2022, down 5.8% from $1.54 per share in the second quarter of 2021. Net income for the second quarter of 2022 was $20.9 million, down $2.0 million or 8.6% when compared to the $22.8 million reported for the same period in 2021. The decline in net income from the prior year was primarily attributable to a $3.9 million pretax variance in provision for credit losses, which was an expense of $856,000 in 2022, versus a credit of $3.1 million in 2021.

For the year-to-date period ended June 30, 2022, diluted earnings per share were $3.05, down 6.4% from $3.26 for the same year-to-date period in 2021. Year-to-date net income was $44.1 million for the six month period ended June 30, 2022, down $4.3 million or 8.9%, when compared to $48.5 million for the same period in 2021. Similar to the quarterly results, the year-to-date net income variance was primarily attributable to the provision for credit losses, which was an expense of $336,000 in 2022, versus a credit of $4.9 million in 2021, resulting in a pretax variance of $5.2 million.

Tompkins President and CEO Stephen Romaine commented, "Results for the second quarter of 2022 included several favorable trends when compared to the most recent prior quarter, including an improved net interest margin, increased loan balances, and higher revenue. Notably, revenue was up 4.8% from the same quarter last year despite a $1.0 million decline in net deferred loan fees associated with Paycheck Protection Program ("PPP") Loans, as outstanding balances in the SBA administered program continue to decline."

SELECTED HIGHLIGHTS FOR THE PERIOD:

  • Total loans at June 30, 2022 were $5.2 billion, up $99.1 million over the immediate prior quarter, reflecting an annualized increase of 7.8% from March 31, 2022.
  • PPP loan balances were $3.5 million at June 30, 2022, reflecting a decline of $20.6 million from March 31, 2022. Total loans, exclusive of PPP loan balances, were up approximately 9.7% annualized over March 2022.
  • Net interest margin improved to 3.09% for the second quarter of 2022, compared to 3.04% for the first quarter of 2022, and 2.91% for the same period in 2021.
  • Nonperforming asset levels declined for the third consecutive quarter and the ratio of nonperforming loans as a percentage of total loans dropped to 0.57%, compared to 0.60% of total loans at March 31, 2022, and 0.61% at December 31, 2021.
  • Total revenue for the second quarter of 2022 increased by 4.8% from the same quarter last year, and grew at annualized rate of 3.2% from the first quarter of 2022.

NET INTEREST INCOME

Net interest income was $58.3 million for the second quarter of 2022, up from $56.6 million for the most recent prior quarter, with the improvement largely driven by growth in total loans and higher yields on earning assets. Net interest income for the second quarter of 2022 was up $3.4 million, or 6.2% from the same period in 2021. Net interest income for the current quarter included $873,000 of net deferred loan fees associated with PPP loans, down from net deferred loan fees of $2.0 million for the quarter ended March 31, 2022, and $1.9 million in the second quarter of 2021.

For the year-to-date period ended June 30, 2022, net interest income was $114.9 million, up $5.0 million or 4.5% compared to the year-to-date period ended June 30, 2021. For the year-to-date period in 2022, net deferred loan fees associated with PPP loans were approximately $2.9 million, down from $4.7 million in the same period of 2021.

Average loans for the quarter ended June 30, 2022 were down $155.3 million, or 3.0%, compared to the same period in 2021. The decrease in average loans was mainly in commercial loans and driven by a decrease in PPP loans from $259.0 million for the quarter ended June 30, 2021, compared to $4.0 million in the current quarter. Asset yields for the quarter ended June 30, 2022 were up 5 basis points compared to the same period in 2021.

Average total deposits for the second quarter of 2022 were down $91.3 million, or 1.4% compared to the same period in 2021. Average noninterest bearing deposits for the quarter ended June 30, 2022 were up $107.0 million or 5.1% compared to the quarter ended June 30, 2021. For the second quarter of 2022, the average rate paid on interest-bearing deposits of 0.18% was down 6 basis points from the same period in 2021 and up 1 basis point from the first quarter of 2022. The total cost of interest-bearing liabilities of 0.22% for the second quarter of 2022, represented a decline of 18 basis points versus the same period in 2021, and an increase of 1 basis point over the first quarter of 2022.

NONINTEREST INCOME

Noninterest income of $18.9 million for the second quarter of 2022 and $38.9 million for the year-to-date period were both up slightly from the same periods in 2021. For the second quarter of 2022, total service-related fee categories were up $547,000 or 3.2% over the same quarter prior year, mainly driven by growth in insurance commissions and fees, and service charges on deposit accounts, which were partially offset by lower investment services income. The decline in investment services income is mainly a result of market conditions. Other income was down from the same quarter last year, driven by reduced income on bank owned life insurance and lower gains on sales on residential loans.

NONINTEREST EXPENSE

Noninterest expense was $49.1 million for the second quarter of 2022, up $1.7 million or 3.5% from the second quarter of 2021. For the year-to-date period, noninterest expense of $96.0 million was up $4.0 million or 4.4% from the same period in 2021. The increase in noninterest expense in the second quarter of 2022 over the same quarter last year was mainly in other expense, which was up $2.3 million or 21.4%, and included increases in marketing , technology, legal expense, printing and supplies, and cardholder expense. Contributing to the growth in these expenses for the three months ended and year-to-date period ended June 30, 2022, were one-time expenses of $956,000 and $1.2 million, respectively, related to the consolidation of the Company's four banking charters into one charter, including the related conversion of the core banking system, which was completed in May of this year.

INCOME TAX EXPENSE

The Company's effective tax rate was 23.3% for the second quarter of 2022, compared to 22.3% for the same period in 2021. The effective tax rate for the six months ended June 30, 2022 was 23.1%, compared to 21.3% reported for the same period in 2021. The increase in the effective tax rate for the three and six months ended June 30, 2022, over the same periods in 2021 is largely due to the anticipated loss 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. The Company expects average assets to exceed the $8.0 billion threshold for the 2022 tax year. As of June 30, 2022, the Company's consolidated average assets, as defined by New York tax law, were slightly under the $8.0 billion threshold. The Company will continue to monitor the consolidated average assets during 2022 to determine future eligibility.

ASSET QUALITY

The allowance for credit losses represented 0.85% of total loans and leases at June 30, 2022, up from 0.83% at March 31, 2022 and down from 0.92% at June 30, 2021. The allowance coverage as a percentage of nonperforming loans and leases improved to 147.95% at June 30, 2022, compared to 139.2% at March 31, 2022 and 88.31% at June 30, 2021.

The provision for credit losses for the second quarter of 2022 was an expense of $856,000, compared to a credit of $3.1 million for the same period in 2021. Provision for credit losses for the six months ended June 30, 2022 was an expense of $336,000, compared to a credit of $4.9 million for the same period in 2021. The increase in provision for credit losses for both the three and six month periods is mainly driven by current economic forecasts coupled with loan growth.

Nonperforming assets represented 0.38% as of June 30, 2022, down from 0.40% at December 31, 2021, and 0.67% at June 30, 2021. At June 30, 2022, nonperforming loans and leases totaled $29.6 million, compared to $31.2 million at December 31, 2021, and $53.8 million at June 30, 2021.

Special Mention and Substandard loans and leases totaled $115.0 million at June 30, 2022, reflecting improvement from $137.6 million at December 31, 2021, and $171.3 million at June 30, 2021. The decrease in Special Mention and Substandard loans, compared to the same period prior year, was mainly due to improved asset quality in the hospitality industry as occupancy rates continue to increase.

As previously announced, the Company implemented a payment deferral program in 2020 to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. As of June 30, 2022, total loans that continued in a deferral status amounted to approximately $1.8 million, representing 0.04% of total loans compared to 2.5% at June 30, 2021. At June 30, 2021, total loans in deferral status totaled $129.4 million.

The Company funded a total of 5,140 applications for PPP loans totaling $694.1 million in 2020 and 2021. Out of the $694.1 million of PPP loans that the Company funded, approximately $690.8 million have been forgiven by the SBA under the terms of the program as of June 30, 2022, or paid back by the borrower. As of June 30, 2022, there were twenty outstanding PPP loans totaling approximately $3.3 million. Total net deferred fees on the remaining balance of PPP loans amounted to $106,000 at June 30, 2022.

CAPITAL POSITION

Capital ratios at June 30, 2022 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.07% at June 30, 2022, compared to 14.23% at December 31, 2021, and 14.62% at June 30, 2021. The ratio of Tier 1 capital to average assets was 9.02% at June 30, 2022, compared to 8.72% at December 31, 2021, and 8.79% at June 30, 2021.

During the second quarter of 2022, the Company repurchased 49,629 common shares at an aggregate cost of $3.8 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021. For the six month period ended June 30, 2022, the Company repurchased 179,797 common shares at an aggregate cost of $14.1 million.

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., 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. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements; changes in general economic, market and regulatory conditions; estimated GDP growth and inflation trends; the ongoing dynamic nature of the COVID-19 pandemic and its impact; 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 the Dodd-Frank Act, Basel III and the Economic Growth, and state and local government mandates; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; uncertainties arising from national and global events such as the war in the Ukraine, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. The Company does not undertake any obligation to update its forward-looking statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data)

 

As of

 

As of

ASSETS

 

06/30/2022

 

12/31/2021

 

 

 

 

(Audited)

 

 

 

 

 

Cash and noninterest bearing balances due from banks

 

$ 20,878

 

$ 23,078

Interest bearing balances due from banks

 

59,514

 

40,029

Cash and Cash Equivalents

 

80,392

 

63,107

 

 

 

 

 

Available-for-sale debt securities, at fair value (amortized cost of $2,075,020 at June 30, 2022 and $2,063,790 at December 31, 2021)

 

1,891,718

 

2,044,513

Held-to-maturity securities, at amortized cost (fair value of $274,660 at June 30, 2022 and $282,288 at December 31, 2021)

 

312,315

 

284,009

Equity securities, at fair value (amortized cost $818 at June 30, 2022 and $902 at December 31, 2021)

 

818

 

902

Total loans and leases, net of unearned income and deferred costs and fees

 

5,162,503

 

5,075,467

Less: Allowance for credit losses

 

43,793

 

42,843

Net Loans and Leases

 

5,118,710

 

5,032,624

 

 

 

 

 

Federal Home Loan Bank and other stock

 

17,913

 

10,996

Bank premises and equipment, net

 

83,661

 

85,416

Corporate owned life insurance

 

87,093

 

86,495

Goodwill

 

92,447

 

92,447

Other intangible assets, net

 

3,124

 

3,643

Accrued interest and other assets

 

154,270

 

115,830

Total Assets

 

$ 7,842,461

 

$ 7,819,982

LIABILITIES

 

 

 

 

Deposits:

 

 

 

 

Interest bearing:

 

 

 

 

Checking, savings and money market

 

3,966,965

 

4,016,025

Time

 

594,853

 

639,674

Noninterest bearing

 

2,207,703

 

2,135,736

Total Deposits

 

6,769,521

 

6,791,435

 

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

50,075

 

66,787

Other borrowings

 

295,600

 

124,000

Other liabilities

 

102,947

 

108,819

Total Liabilities

 

$ 7,218,143

 

$ 7,091,041

EQUITY

 

 

 

 

Tompkins Financial Corporation shareholders' equity:

 

 

 

 

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,540,514 at June 30, 2022; and 14,696,911 at December 31, 2021

 

1,454

 

1,470

Additional paid-in capital

 

303,335

 

312,538

Retained earnings

 

502,770

 

475,262

Accumulated other comprehensive loss

 

(178,869)

 

(55,950)

Treasury stock, at cost – 123,030 shares at June 30, 2022, and 124,709 shares at December 31, 2021

 

(5,847)

 

(5,791)

Total Tompkins Financial Corporation Shareholders’ Equity

 

622,843

 

727,529

Noncontrolling interests

 

1,475

 

1,412

Total Equity

 

$ 624,318

 

$ 728,941

Total Liabilities and Equity

 

$ 7,842,461

 

$ 7,819,982

 

 

 

 

 

TOMPKINS FINANCIAL CORPORATION

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

(In thousands, except per share data) (Unaudited)

 

Three Months Ended

 

Six Months Ended

 

 

06/30/2022

 

06/30/2021

 

06/30/2022

 

06/30/2021

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

Loans

 

$ 52,505

 

$ 53,653

 

$ 103,636

 

$ 107,860

Due from banks

 

64

 

45

 

105

 

130

Available-for-sale debt securities

 

7,063

 

5,626

 

13,833

 

10,876

Held-to-maturity securities

 

1,201

 

312

 

2,330

 

312

Federal Home Loan Bank and other stock

 

120

 

199

 

225

 

412

Total Interest and Dividend Income

 

60,953

 

$ 59,835

 

$ 120,129

 

$ 119,590

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Time certificates of deposits of $250,000 or more

 

400

 

567

 

826

 

1,206

Other deposits

 

1,647

 

2,235

 

3,267

 

4,747

Federal funds purchased and securities sold under agreements to repurchase

 

15

 

15

 

31

 

31

Trust preferred debentures

 

0

 

821

 

0

 

996

Other borrowings

 

629

 

1,351

 

1,129

 

2,727

Total Interest Expense

 

2,691

 

4,989

 

5,253

 

9,707

Net Interest Income

 

58,262

 

54,846

 

114,876

 

109,883

Less: Provision (credit) for credit loss expense

 

856

 

(3,071)

 

336

 

(4,901)

Net Interest Income After Credit for Credit Loss Expense

 

57,406

 

57,917

 

114,540

 

114,784

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Insurance commissions and fees

 

8,429

 

8,054

 

17,746

 

17,220

Investment services income

 

4,596

 

4,717

 

9,513

 

9,390

Service charges on deposit accounts

 

1,756

 

1,471

 

3,535

 

2,941

Card services income

 

2,959

 

2,951

 

5,502

 

5,334

Other income

 

1,241

 

1,665

 

2,717

 

3,639

Net (loss) gain on securities transactions

 

(37)

 

0

 

(84)

 

317

Total Noninterest Income

 

18,944

 

18,858

 

38,929

 

38,841

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and wages

 

24,396

 

23,992

 

47,668

 

46,652

Other employee benefits

 

6,341

 

6,626

 

12,138

 

12,110

Net occupancy expense of premises

 

3,131

 

3,561

 

6,672

 

7,023

Furniture and fixture expense

 

2,004

 

2,204

 

3,995

 

4,154

Amortization of intangible assets

 

219

 

329

 

437

 

659

Other operating expense

 

13,029

 

10,730

 

25,049

 

21,355

Total Noninterest Expenses

 

49,120

 

47,442

 

95,959

 

91,953

Income Before Income Tax Expense

 

27,230

 

29,333

 

57,510

 

61,672

Income Tax Expense

 

6,329

 

6,471

 

13,305

 

13,151

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

 

20,901

 

22,862

 

44,205

 

48,521

Less: Net Income Attributable to Noncontrolling Interests

 

32

 

31

 

63

 

64

Net Income Attributable to Tompkins Financial Corporation

 

$ 20,869

 

22,831

 

44,142

 

48,457

Basic Earnings Per Share

 

$ 1.45

 

$ 1.55

 

$ 3.06

 

$ 3.28

Diluted Earnings Per Share

 

$ 1.45

 

$ 1.54

 

$ 3.05

 

$ 3.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

 

Quarter Ended

Quarter Ended

 

June 30, 2022

June 30, 2021

 

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

$ 88,094

$ 64

0.29 %

$ 216,679

$ 45

0.08 %

Securities (1)

 

 

 

 

 

 

U.S. Government securities

2,305,102

7,746

1.35 %

1,987,541

5,338

1.08 %

State and municipal (2)

97,481

619

2.55 %

114,221

727

2.55 %

Other securities (2)

3,337

28

3.40 %

3,418

23

2.70 %

Total securities

2,405,920

8,393

1.40 %

2,105,180

6,088

1.16 %

FHLBNY and FRB stock

12,234

120

3.92 %

17,285

199

4.62 %

Total loans and leases, net of unearned income (2)(3)

5,115,340

52,733

4.14 %

5,270,648

53,909

4.10 %

Total interest-earning assets

7,621,588

61,310

3.23 %

7,609,792

60,241

3.18 %

Other assets

209,057

 

 

340,154

 

 

Total assets

$ 7,830,645

 

 

$ 7,949,946

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$ 4,073,279

$ 890

0.09 %

$ 3,966,472

$ 943

0.10 %

Time deposits

603,791

1,157

0.77 %

726,258

1,859

1.03 %

Total interest-bearing deposits

4,677,070

2,047

0.18 %

4,692,730

2,802

0.24 %

Federal funds purchased & securities sold under agreements to repurchase

54,885

15

0.11 %

52,099

15

0.11 %

Other borrowings

169,390

629

1.49 %

272,993

1,351

1.98 %

Trust preferred debentures

0

0

0.00 %

12,978

821

25.39 %

Total interest-bearing liabilities

4,901,345

2,691

0.22 %

5,030,800

4,989

0.40 %

Noninterest bearing deposits

2,189,132

 

 

2,082,149

 

 

Accrued expenses and other liabilities

100,813

 

 

115,661

 

 

Total liabilities

7,191,290

 

 

7,228,610

 

 

Tompkins Financial Corporation Shareholders’ equity

637,896

 

 

719,880

 

 

Noncontrolling interest

1,459

 

 

1,456

 

 

Total equity

639,355

 

 

721,336

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$ 7,830,645

 

 

$ 7,949,946

 

 

Interest rate spread

 

 

3.01 %

 

 

2.78 %

Net interest income/margin on earning assets

 

58,619

3.09 %

 

55,252

2.91 %

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

(357)

 

 

(406)

 

Net interest income per consolidated financial statements

 

$ 58,262

 

 

$ 54,846

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

 

Year to Date Period Ended

Year to Date Period Ended

 

June 30, 2022

June 30, 2021

 

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

$ 110,984

$ 105

0.19 %

$ 312,130

$ 130

0.08 %

Securities (1)

 

 

 

 

 

 

U.S. Government securities

2,299,389

15,108

1.32 %

1,812,315

9,950

1.11 %

State and municipal (2)

99,602

1,267

2.57 %

117,571

1,502

2.58 %

Other securities (2)

3,363

51

3.06 %

3,422

46

2.72 %

Total securities

2,402,354

16,426

1.38 %

1,933,308

11,498

1.20 %

FHLBNY and FRB stock

11,172

225

4.06 %

16,836

412

4.93 %

Total loans and leases, net of unearned income (2)(3)

5,085,808

104,088

4.13 %

5,280,914

108,365

4.14 %

Total interest-earning assets

7,610,318

120,844

3.20 %

7,543,188

120,405

3.22 %

Other assets

259,809

 

 

345,461

 

 

Total assets

$ 7,870,127

 

 

$ 7,888,649

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$ 4,116,870

$ 1,638

0.08 %

$ 3,957,936

$ 2,036

0.10 %

Time deposits

617,616

2,455

0.80 %

737,729

3,917

1.07 %

Total interest-bearing deposits

4,734,486

4,093

0.17 %

4,695,665

5,953

0.26 %

Federal funds purchased & securities sold under agreements to repurchase

59,536

31

0.11 %

55,821

31

0.11 %

Other borrowings

147,466

1,129

1.54 %

269,019

2,727

2.04 %

Trust preferred debentures

0

0

0.00 %

13,105

996

15.33 %

Total interest-bearing liabilities

4,941,488

5,253

0.21 %

5,033,610

9,707

0.39 %

Noninterest bearing deposits

2,149,201

 

 

2,016,262

 

 

Accrued expenses and other liabilities

103,451

 

 

117,749

 

 

Total liabilities

7,194,140

 

 

7,167,621

 

 

Tompkins Financial Corporation Shareholders’ equity

674,545

 

 

719,586

 

 

Noncontrolling interest

1,442

 

 

1,442

 

 

Total equity

675,987

 

 

721,028

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$ 7,870,127

 

 

$ 7,888,649

 

 

Interest rate spread

 

 

2.99 %

 

 

2.83 %

Net interest income/margin on earning assets

 

115,591

3.06 %

 

110,698

2.96 %

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

(715)

 

 

(815)

 

Net interest income per consolidated financial statements

 

$ 114,876

 

 

$ 109,883

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

Quarter-Ended

Year-Ended

Period End Balance Sheet

Jun-22

Mar-22

Dec-21

Sep-21

Jun-21

Dec-21

Securities

$ 2,204,851

$ 2,285,527

$ 2,329,424

$ 2,337,105

$ 2,166,853

$ 2,329,424

Total Loans

5,162,503

5,063,451

5,075,467

5,096,778

5,175,129

5,075,467

Allowance for credit losses

43,793

42,126

42,843

46,259

47,505

42,843

Total assets

7,842,461

7,891,111

7,819,982

8,113,110

7,988,208

7,819,982

Total deposits

6,769,521

7,016,739

6,791,435

7,090,898

6,837,000

6,791,435

Federal funds purchased and securities sold under agreements to repurchase

50,075

57,115

66,787

72,490

52,134

66,787

Other borrowings

295,600

60,000

124,000

110,000

245,000

124,000

Trust preferred debentures

0

0

0

0

8,799

0

Total common equity

622,843

656,049

727,529

720,851

726,779

727,529

Total equity

624,318

657,492

728,941

722,357

728,253

728,941

Average Balance Sheet

 

 

 

 

 

 

Average earning assets

$ 7,621,588

$ 7,598,922

$ 7,660,556

$ 7,753,700

$ 7,609,792

$ 7,625,832

Average assets

7,830,645

7,910,047

7,993,816

8,102,070

7,949,946

7,968,951

Average interest-bearing liabilities

4,901,345

4,982,075

4,966,711

5,086,753

5,030,800

5,030,143

Average equity

639,354

713,027

722,619

733,117

721,336

724,476

Share data

 

 

 

 

 

 

Weighted average shares outstanding (basic)

14,317,415

14,400,003

14,452,775

14,494,533

14,654,774

14,568,763

Weighted average shares outstanding (diluted)

14,387,601

14,478,183

14,532,480

14,568,334

14,737,735

14,648,167

Period-end shares outstanding

14,504,604

14,561,450

14,661,001

14,659,195

14,829,873

14,661,001

Common equity book value per share

$ 42.94

$ 45.05

$ 49.62

$ 49.17

$ 49.01

$ 49.62

Income Statement

 

 

 

 

 

 

Net interest income

$ 58,262

$ 56,614

$ 57,811

$ 56,098

$ 54,846

$ 223,792

Provision (credit) for credit loss expense (5)

856

(520)

3,914

(1,232)

(3,071)

(2,219)

Noninterest income

18,944

19,985

19,154

20,854

18,858

78,849

Noninterest expense (5)

49,120

46,839

48,154

50,180

47,442

190,287

Income tax expense

6,329

6,976

5,401

6,630

6,471

25,182

Net income attributable to Tompkins Financial Corporation

20,869

23,273

19,465

21,342

22,831

89,264

Noncontrolling interests

32

31

31

32

31

127

Basic earnings per share (4)

1.45

1.61

1.34

1.46

1.55

6.08

Diluted earnings per share (4)

1.45

1.60

1.33

1.45

1.54

6.05

Nonperforming Assets

 

 

 

 

 

 

Nonaccrual loans and leases

$ 24,665

$ 25,200

$ 26,033

$ 47,941

$ 48,019

$ 26,033

Loans and leases 90 days past due and accruing

62

0

0

7,463

0

0

Troubled debt restructuring not included above

4,872

5,064

5,124

5,343

5,776

5,126

Total nonperforming loans and leases

29,599

30,264

31,157

60,747

53,795

31,159

OREO

122

88

135

135

88

135

Total nonperforming assets

$ 29,721

$ 30,352

$ 31,292

$ 60,882

$ 53,883

$ 31,294

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

 

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Jun-22

Mar-22

Dec-21

Sep-21

Jun-21

Dec-21

Loans and leases 30-89 days past due and

 

 

 

 

 

 

accruing

$ 9,837

$ 1,735

$ 3,072

$ 1,436

$ 1,692

$ 3,072

Loans and leases 90 days past due and accruing

0

0

0

7,463

0

0

Total loans and leases past due and accruing

9,837

1,735

3,072

8,899

1,692

3,072

Allowance for Credit Losses

Balance at beginning of period

$ 42,126

$ 42,843

$ 46,259

$ 47,505

$ 49,339

$ 51,669

Provision (credit) for credit losses

780

(734)

3,600

(1,177)

(2,718)

$ (2,805)

Net loan and lease charge-offs (recoveries)

(887)

(17)

7,016

69

(884)

$ 6,021

Allowance for credit losses at end of period

$ 43,793

$ 42,126

$ 42,843

$ 46,259

$ 47,505

$ 42,843

 

 

 

 

 

 

 

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

$ 2,720

$ 2,506

$ 2,192

$ 2,247

$ 2,600

$ 1,920

Provision (credit) for credit losses

76

214

314

(55)

(353)

$ 586

Allowance for credit losses at end of period

$ 2,796

$ 2,720

$ 2,506

$ 2,192

$ 2,247

$ 2,506

Loan Classification - Total Portfolio

 

 

 

 

 

 

Special Mention

$ 72,270

$ 92,380

$ 85,530

$ 98,253

$ 108,269

$ 85,530

Substandard

42,756

42,722

52,047

70,213

62,992

52,047

Ratio Analysis

Credit Quality

 

 

 

 

 

 

Nonperforming loans and leases/total loans and leases

0.57 %

0.60 %

0.61 %

1.19 %

1.04 %

0.61 %

Nonperforming assets/total assets

0.38 %

0.38 %

0.40 %

0.75 %

0.67 %

0.40 %

Allowance for credit losses/total loans and leases

0.85 %

0.83 %

0.84 %

0.91 %

0.92 %

0.84 %

Allowance/nonperforming loans and leases

147.95 %

139.20 %

137.51 %

76.15 %

88.31 %

137.49 %

Net loan and lease losses annualized/total average loans and leases

(0.07) %

0.00 %

0.55 %

0.01 %

(0.07) %

0.12 %

Capital Adequacy

 

 

 

 

 

 

Tier 1 Capital (to average assets)

9.02 %

8.89 %

8.72 %

8.54 %

8.79 %

8.75 %

Total Capital (to risk-weighted assets)

14.07 %

14.23 %

14.23 %

14.21 %

14.62 %

14.39 %

Profitability (period-end)

 

 

 

 

 

 

Return on average assets *

1.07 %

1.19 %

0.97 %

1.05 %

1.15 %

1.12 %

Return on average equity *

13.09 %

13.24 %

10.69 %

11.55 %

12.70 %

12.32 %

Net interest margin (TE) *

3.09 %

3.04 %

3.01 %

2.89 %

2.91 %

2.96 %

* Quarterly ratios have been annualized

(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 2022 and 2021 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, 2021.
(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.

 

Contacts

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

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