Tompkins Financial Corporation Reports First Quarter Financial Results

Published

ITHACA, N.Y.--(BUSINESS WIRE)-- 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.

For more information: Stephen S. Romaine, President & CEO Matthew Tomazin, Executive VP, CFO & Treasurer Tompkins Financial Corporation (888) 503-5753

Source: Tompkins Financial Corporation

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