Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.48 for the third quarter of 2022, up 2.1% from $1.45 per share in the third quarter of 2021. Net income for the third quarter of 2022 of $21.3 million was essentially unchanged when compared to the third quarter of 2021.
For the year-to-date period ended September 30, 2022, diluted earnings per share was $4.53, down 4.0% from $4.72 for the same year-to-date period in 2021. Year-to-date net income was $65.5 million for the period ended September 30, 2022, down $4.3 million, or 6.2%, from the same period in 2021. The year-to-date net income variance was primarily attributable to the provision for credit losses, which was an expense of $1.4 million in 2022, versus a credit of $6.1 million in 2021, resulting in a pretax variance of $7.5 million.
Tompkins President and CEO Stephen Romaine commented, "We noted several favorable trends during the third quarter of 2022. Revenue increased for the second consecutive quarter and grew at an annualized rate of 8.3% over the second quarter of this year. Our total loans grew at an annualized rate of 3.8% during the quarter, although that growth rate is somewhat slower than the 7.8% growth we experienced in the second quarter of this year. Our team did an excellent job supporting business in our communities with PPP loans and we are pleased that our loans outstanding under that program totaled less than $1 million as of September 30, 2022."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Total loans at September 30, 2022 were $5.2 billion, up $45.9 million over the immediate prior quarter, reflecting an annualized increase of 3.6% from June 30, 2022.
- Net interest margin of 3.04% for the quarter ended September 30, 2022 was down as compared to the 3.09% for the quarter ended June 30, 2022, but increased from 2.89% for the same period in 2021.
- Total deposits at September 30, 2022 were $6.9 billion and were up 2.5% compared to the second quarter of 2022, and down 2.2% from the same period of 2021.
NET INTEREST INCOME
Net interest income was $58.1 million for the third quarter of 2022, which was in line with the most recent prior quarter. The third quarter of 2022 showed increased interest income in both the loan and security portfolios, but was slightly offset by higher funding cost on both deposits and other borrowings. Net interest income for the third quarter of 2022 was up $2.0 million, or 3.6% from the same period in 2021. Net interest income for the current quarter included $88,000 of net deferred loan fees associated with PPP loans, down from net deferred loan fees of $873,000 for the quarter ended June 30, 2022, and $3.3 million of net deferred loan fees in the third quarter of 2021.
For the year-to-date period ended September 30, 2022, net interest income was $173.0 million, up $7.0 million or 4.2% compared to the year-to-date period ended September 30, 2021. For the year-to-date period in 2022, net deferred loan fees associated with PPP loans were approximately $3.0 million, down from $8.0 million in the same period of 2021.
Average loans for the quarter ended September 30, 2022 increased $70.0 million or 1.4%, compared to the same period in 2021. The increase in average loans as compared to the same period prior year was mainly in commercial and residential real estate loans, which were up 7.6%, and 5.9%, respectively. Commercial and industrial loans were down 21.1%, mainly driven by lower PPP loan balances. Interest earning asset yields for the quarter ended September 30, 2022 were up 9 basis points from the second quarter of 2022 and up 17 basis points compared to the same period in 2021.
Average total deposits for the third quarter of 2022 were down $137.4 million, or 2.0% compared to the same period in 2021. Average noninterest bearing deposits for the quarter ended September 30, 2022 were up $84.7 million or 3.9% compared to the quarter ended September 30, 2021. For the third quarter of 2022, the average rate paid on interest-bearing deposits of 0.36% was up 18 basis points from the second quarter of 2022, and 14 basis points from the same period in 2021. The total cost of interest-bearing liabilities of 0.45% for the third quarter of 2022 represented an increase of 23 basis points over the second quarter of 2022, and an increase of 6 basis points versus the same period in 2021.
NONINTEREST INCOME
Noninterest income of $20.7 million for the third quarter of 2022 and $59.6 million for the year-to-date period were both in-line with the same periods in 2021. For the third quarter of 2022, total service-related fee categories were up $665,000 or 3.5% 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 wealth management fees. The decline in wealth management fees is mainly a result of market conditions. Other income was down from the same quarter last year, mainly due to lower earnings on bank-owned life insurance, which was down $603,000 compared to the same quarter in 2021, as certain separate account policies were unfavorably impacted by decreases in the market value of the underlying assets.
NONINTEREST EXPENSE
Noninterest expense was $49.6 million for the third quarter of 2022, down $578,000 or 1.2% from the third quarter of 2021. For the year-to-date period, noninterest expense of $145.6 million was up $3.4 million or 2.4% from the same period in 2021. Growth in noninterest expense for the year-to-date period was primarily driven by increases in salary and wage expense and other noninterest expense. Other noninterest expense for the three months ended and year-to-date period ended September 30, 2022, included nonrecurring expenses of $196,000 and $1.2 million, respectively, related to the consolidation and rebranding of the Company's four banking charters.
INCOME TAX EXPENSE
The Company's effective tax rate was 24.1% for the third quarter of 2022, compared to 23.7% for the same period in 2021. The effective tax rate for the nine months ended September 30, 2022 was 23.4%, compared to 22.1% reported for the same period in 2021.
The increase in the effective tax rate for the three and nine months ended September 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 September 30, 2022, the Company's consolidated average assets were slightly over the $8.0 billion threshold, as defined by New York State law. The Company will continue to monitor the consolidated average assets during 2022 to determine future eligibility.
ASSET QUALITY
The allowance for credit losses represented 0.86% of total loans and leases at September 30, 2022, up from 0.85% at June 30, 2022 and down from 0.91% at September 30, 2021. The allowance coverage as a percentage of nonperforming loans and leases was 128.27% at September 30, 2022, down compared to 147.95% at June 30, 2022 and improved from the 76.15% reported at September 30, 2021.
The provision for credit losses for the third quarter of 2022 was an expense of $1.1 million, compared to a credit of $1.2 million for the same period in 2021. Provision for credit losses for the nine months ended September 30, 2022 was an expense of $1.4 million, compared to a credit of $6.1 million for the same period in 2021. The increase in provision for credit losses for both the three and nine month periods is mainly driven by current economic forecasts coupled with loan growth.
Nonperforming assets represented 0.45% as of September 30, 2022, up from 0.40% at December 31, 2021, and down compared to 0.75% at September 30, 2021. At September 30, 2022, nonperforming loans and leases totaled $34.9 million, compared to $31.2 million at December 31, 2021, and $60.7 million at September 30, 2021.
Special Mention and Substandard loans and leases totaled $106.7 million at September 30, 2022, reflecting improvement from $137.6 million at December 31, 2021, and $115.0 million at June 30, 2022. The decrease in Special Mention and Substandard loans, compared to the most recent prior quarter, was mainly due to improved asset quality in the hospitality industry as occupancy rates continue to increase.
The Company funded a total of 5,140 applications for PPP loans totaling $694.1 million in 2020 and 2021. As of September 30, 2022, there were fourteen outstanding PPP loans totaling approximately $875,000. Total net deferred fees on the remaining balance of PPP loans amounted to $18,000 at September 30, 2022.
CAPITAL POSITION
Capital ratios at September 30, 2022 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.26% at September 30, 2022, compared to 14.23% at December 31, 2021, and 14.21% at September 30, 2021. The ratio of Tier 1 capital to average assets was 9.14% at September 30, 2022, compared to 8.72% at December 31, 2021, and 8.54% at September 30, 2021.
During the third quarter of 2022, the Company repurchased 18,182 common shares at an aggregate cost of $1.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021. For the nine month period ended September 30, 2022, the Company repurchased 197,979 common shares at an aggregate cost of $15.4 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 SEC rule making, The Dodd-Frank Act, Basel III, 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 |
9/30/2022 |
12/31/2021 |
||||
|
|
(Audited) |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
20,342 |
|
$ |
23,078 |
|
Interest bearing balances due from banks |
|
83,270 |
|
|
40,029 |
|
Cash and Cash Equivalents |
|
103,612 |
|
|
63,107 |
|
|
|
|
||||
Available-for-sale debt securities, at fair value (amortized cost of $2,010,101 at September 30, 2022 and $2,063,790 at December 31, 2021) |
|
1,740,936 |
|
|
2,044,513 |
|
Held-to-maturity securities, at amortized cost (fair value of $258,755 at September 30, 2022 and $282,288 at December 31, 2021) |
|
312,329 |
|
|
284,009 |
|
Equity securities, at fair value (amortized cost $771 at September 30, 2022 and $902 at December 31, 2021) |
|
771 |
|
|
902 |
|
Total loans and leases, net of unearned income and deferred costs and fees |
|
5,208,436 |
|
|
5,075,467 |
|
Less: Allowance for credit losses |
|
44,772 |
|
|
42,843 |
|
Net Loans and Leases |
|
5,163,664 |
|
|
5,032,624 |
|
|
|
|
||||
Federal Home Loan Bank and other stock |
|
9,156 |
|
|
10,996 |
|
Bank premises and equipment, net |
|
82,636 |
|
|
85,416 |
|
Corporate owned life insurance |
|
86,857 |
|
|
86,495 |
|
Goodwill |
|
92,602 |
|
|
92,447 |
|
Other intangible assets, net |
|
2,932 |
|
|
3,643 |
|
Accrued interest and other assets |
|
184,446 |
|
|
115,830 |
|
Total Assets |
$ |
7,779,941 |
|
$ |
7,819,982 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
|
4,076,753 |
|
|
4,016,025 |
|
Time |
|
599,612 |
|
|
639,674 |
|
Noninterest bearing |
|
2,260,361 |
|
|
2,135,736 |
|
Total Deposits |
|
6,936,726 |
|
|
6,791,435 |
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
|
55,340 |
|
|
66,787 |
|
Other borrowings |
|
101,000 |
|
|
124,000 |
|
Other liabilities |
|
113,916 |
|
|
108,819 |
|
Total Liabilities |
$ |
7,206,982 |
|
$ |
7,091,041 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,519,667 at September 30, 2022; and 14,696,911 at December 31, 2021 |
|
1,452 |
|
|
1,470 |
|
Additional paid-in capital |
|
303,431 |
|
|
312,538 |
|
Retained earnings |
|
515,870 |
|
|
475,262 |
|
Accumulated other comprehensive loss |
|
(243,237 |
) |
|
(55,950 |
) |
Treasury stock, at cost – 125,944 shares at September 30, 2022, and 124,709 shares at December 31, 2021 |
|
(6,063 |
) |
|
(5,791 |
) |
Total Tompkins Financial Corporation Shareholders’ Equity |
|
571,453 |
|
|
727,529 |
|
Noncontrolling interests |
|
1,506 |
|
|
1,412 |
|
Total Equity |
$ |
572,959 |
|
$ |
728,941 |
|
Total Liabilities and Equity |
$ |
7,779,941 |
|
$ |
7,819,982 |
|
|
|
|
||||
TOMPKINS FINANCIAL CORPORATION |
|
|
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|||||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
Nine Months Ended |
|||||||||||
|
9/30/2022 |
9/30/2021 |
9/30/2022 |
9/30/2021 |
|||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|||||||||
Loans |
$ |
55,041 |
|
$ |
53,738 |
|
$ |
158,677 |
|
$ |
161,598 |
|
|
Due from banks |
|
85 |
|
|
136 |
|
|
190 |
|
|
266 |
|
|
Available-for-sale debt securities |
|
7,157 |
|
|
6,312 |
|
|
20,990 |
|
|
17,188 |
|
|
Held-to-maturity securities |
|
1,221 |
|
|
732 |
|
|
3,551 |
|
|
1,044 |
|
|
Federal Home Loan Bank and other stock |
|
166 |
|
|
196 |
|
|
391 |
|
|
608 |
|
|
Total Interest and Dividend Income |
|
63,670 |
|
$ |
61,114 |
|
$ |
183,799 |
|
$ |
180,704 |
|
|
INTEREST EXPENSE |
|
|
|
|
|||||||||
Time certificates of deposits of $250,000 or more |
|
563 |
|
|
518 |
|
|
1,389 |
|
|
1,724 |
|
|
Other deposits |
|
3,631 |
|
|
2,088 |
|
|
6,898 |
|
|
6,835 |
|
|
Federal funds purchased and securities sold under agreements to repurchase |
|
14 |
|
|
17 |
|
|
45 |
|
|
48 |
|
|
Trust preferred debentures |
|
0 |
|
|
1,237 |
|
|
0 |
|
|
2,233 |
|
|
Other borrowings |
|
1,351 |
|
|
1,156 |
|
|
2,480 |
|
|
3,883 |
|
|
Total Interest Expense |
|
5,559 |
|
|
5,016 |
|
|
10,812 |
|
|
14,723 |
|
|
Net Interest Income |
|
58,111 |
|
|
56,098 |
|
|
172,987 |
|
|
165,981 |
|
|
Less: Provision (credit) for credit loss expense |
|
1,056 |
|
|
(1,232 |
) |
|
1,392 |
|
|
(6,133 |
) |
|
Net Interest Income After Credit for Credit Loss Expense |
|
57,055 |
|
|
57,330 |
|
|
171,595 |
|
|
172,114 |
|
|
NONINTEREST INCOME |
|
|
|
|
|||||||||
Insurance commissions and fees |
|
10,825 |
|
|
9,833 |
|
|
28,571 |
|
|
27,053 |
|
|
Wealth management fees |
|
4,337 |
|
|
4,957 |
|
|
13,850 |
|
|
14,347 |
|
|
Service charges on deposit accounts |
|
1,917 |
|
|
1,638 |
|
|
5,452 |
|
|
4,579 |
|
|
Card services income |
|
2,731 |
|
|
2,717 |
|
|
8,233 |
|
|
8,051 |
|
|
Other income |
|
977 |
|
|
1,769 |
|
|
3,694 |
|
|
5,408 |
|
|
Net (loss) gain on securities transactions |
|
(95 |
) |
|
(60 |
) |
|
(179 |
) |
|
257 |
|
|
Total Noninterest Income |
|
20,692 |
|
|
20,854 |
|
|
59,621 |
|
|
59,695 |
|
|
NONINTEREST EXPENSE |
|
|
|
|
|||||||||
Salaries and wages |
|
25,344 |
|
|
24,825 |
|
|
73,012 |
|
|
71,477 |
|
|
Other employee benefits |
|
6,489 |
|
|
5,777 |
|
|
18,627 |
|
|
17,887 |
|
|
Net occupancy expense of premises |
|
3,258 |
|
|
3,019 |
|
|
9,930 |
|
|
10,042 |
|
|
Furniture and fixture expense |
|
2,056 |
|
|
2,066 |
|
|
6,051 |
|
|
6,220 |
|
|
Amortization of intangible assets |
|
218 |
|
|
329 |
|
|
655 |
|
|
988 |
|
|
Other operating expense |
|
12,237 |
|
|
14,164 |
|
|
37,286 |
|
|
35,519 |
|
|
Total Noninterest Expenses |
|
49,602 |
|
|
50,180 |
|
|
145,561 |
|
|
142,133 |
|
|
Income Before Income Tax Expense |
|
28,145 |
|
|
28,004 |
|
|
85,655 |
|
|
89,676 |
|
|
Income Tax Expense |
|
6,774 |
|
|
6,630 |
|
|
20,079 |
|
|
19,781 |
|
|
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
|
21,371 |
|
|
21,374 |
|
|
65,576 |
|
|
69,895 |
|
|
Less: Net Income Attributable to Noncontrolling Interests |
|
31 |
|
|
32 |
|
|
94 |
|
|
96 |
|
|
Net Income Attributable to Tompkins Financial Corporation |
$ |
21,340 |
|
|
21,342 |
|
|
65,482 |
|
|
69,799 |
|
|
Basic Earnings Per Share |
$ |
1.49 |
|
$ |
1.46 |
|
$ |
4.55 |
|
$ |
4.74 |
|
|
Diluted Earnings Per Share |
$ |
1.48 |
|
$ |
1.45 |
|
$ |
4.53 |
|
$ |
4.72 |
|
|
|
|
|
|
|
|||||||||
|
|
|
|||||||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||
|
September 30, 2022 |
September 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 |
$ |
63,516 |
$ |
85 |
|
0.53 |
% |
$ |
376,341 |
$ |
136 |
|
0.14 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
U.S. Government securities |
|
2,276,380 |
|
7,853 |
|
1.37 |
% |
|
2,133,984 |
|
6,467 |
|
1.20 |
% |
State and municipal (2) |
|
95,627 |
|
614 |
|
2.55 |
% |
|
109,375 |
|
697 |
|
2.53 |
% |
Other securities (2) |
|
3,323 |
|
37 |
|
4.44 |
% |
|
3,417 |
|
23 |
|
2.64 |
% |
Total securities |
|
2,375,330 |
|
8,504 |
|
1.42 |
% |
|
2,246,776 |
|
7,187 |
|
1.27 |
% |
FHLBNY and FRB stock |
|
15,058 |
|
166 |
|
4.38 |
% |
|
15,330 |
|
196 |
|
5.07 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,185,219 |
|
55,265 |
|
4.23 |
% |
|
5,115,253 |
|
53,989 |
|
4.19 |
% |
Total interest-earning assets |
|
7,639,123 |
|
64,020 |
|
3.32 |
% |
|
7,753,700 |
|
61,508 |
|
3.15 |
% |
Other assets |
|
214,724 |
|
|
|
348,370 |
|
|
||||||
Total assets |
$ |
7,853,847 |
|
|
$ |
8,102,070 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
$ |
3,979,590 |
$ |
2,863 |
|
0.29 |
% |
$ |
4,090,840 |
$ |
906 |
|
0.09 |
% |
Time deposits |
|
596,299 |
|
1,331 |
|
0.89 |
% |
|
707,212 |
|
1,700 |
|
0.95 |
% |
Total interest-bearing deposits |
|
4,575,889 |
|
4,194 |
|
0.36 |
% |
|
4,798,052 |
|
2,606 |
|
0.22 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
53,810 |
|
14 |
|
0.10 |
% |
|
60,798 |
|
17 |
|
0.11 |
% |
Other borrowings |
|
232,158 |
|
1,351 |
|
2.31 |
% |
|
224,459 |
|
1,156 |
|
2.04 |
% |
Trust preferred debentures |
|
0 |
|
0 |
|
0.00 |
% |
|
3,444 |
|
1,237 |
|
142.50 |
% |
Total interest-bearing liabilities |
|
4,861,857 |
|
5,559 |
|
0.45 |
% |
|
5,086,753 |
|
5,016 |
|
0.39 |
% |
Noninterest bearing deposits |
|
2,250,263 |
|
|
|
2,165,537 |
|
|
||||||
Accrued expenses and other liabilities |
|
106,403 |
|
|
|
116,663 |
|
|
||||||
Total liabilities |
|
7,218,523 |
|
|
|
7,368,953 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
633,837 |
|
|
|
731,629 |
|
|
||||||
Noncontrolling interest |
|
1,487 |
|
|
|
1,488 |
|
|
||||||
Total equity |
|
635,324 |
|
|
|
733,117 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,853,847 |
|
|
$ |
8,102,070 |
|
|
||||||
Interest rate spread |
|
|
2.87 |
% |
|
|
2.76 |
% |
||||||
Net interest income/margin on earning assets |
|
|
58,461 |
|
3.04 |
% |
|
|
56,492 |
|
2.89 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(350 |
) |
|
|
|
(394 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
58,111 |
|
|
|
$ |
56,098 |
|
|
||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Year to Date Period Ended |
Year to Date Period Ended |
||||||||||||
|
September 30, 2022 |
September 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 |
$ |
94,988 |
$ |
190 |
|
0.27 |
% |
$ |
333,769 |
$ |
266 |
|
0.11 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
U.S. Government securities |
|
2,291,636 |
|
22,960 |
|
1.34 |
% |
|
1,920,717 |
|
16,417 |
|
1.14 |
% |
State and municipal (2) |
|
98,262 |
|
1,882 |
|
2.56 |
% |
|
114,809 |
|
2,200 |
|
2.56 |
% |
Other securities (2) |
|
3,349 |
|
88 |
|
3.52 |
% |
|
3,420 |
|
69 |
|
2.70 |
% |
Total securities |
|
2,393,247 |
|
24,930 |
|
1.39 |
% |
|
2,038,946 |
|
18,685 |
|
1.23 |
% |
FHLBNY and FRB stock |
|
12,481 |
|
391 |
|
4.19 |
% |
|
16,328 |
|
608 |
|
4.98 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,119,309 |
|
159,353 |
|
4.16 |
% |
|
5,225,087 |
|
162,355 |
|
4.15 |
% |
Total interest-earning assets |
|
7,620,025 |
|
184,864 |
|
3.24 |
% |
|
7,614,130 |
|
181,915 |
|
3.19 |
% |
Other assets |
|
244,615 |
|
|
|
346,441 |
|
|
||||||
Total assets |
$ |
7,864,640 |
|
|
$ |
7,960,571 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
$ |
4,070,607 |
$ |
4,502 |
|
0.15 |
% |
$ |
4,002,724 |
$ |
2,943 |
|
0.10 |
% |
Time deposits |
|
610,432 |
|
3,785 |
|
0.83 |
% |
|
727,445 |
|
5,616 |
|
1.03 |
% |
Total interest-bearing deposits |
|
4,681,039 |
|
8,287 |
|
0.24 |
% |
|
4,730,169 |
|
8,559 |
|
0.24 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
57,606 |
|
45 |
|
0.10 |
% |
|
57,498 |
|
48 |
|
0.11 |
% |
Other borrowings |
|
176,007 |
|
2,480 |
|
1.88 |
% |
|
254,002 |
|
3,883 |
|
2.04 |
% |
Trust preferred debentures |
|
0 |
|
0 |
|
0.00 |
% |
|
9,849 |
|
2,233 |
|
30.32 |
% |
Total interest-bearing liabilities |
|
4,914,652 |
|
10,812 |
|
0.29 |
% |
|
5,051,518 |
|
14,723 |
|
0.39 |
% |
Noninterest bearing deposits |
|
2,183,258 |
|
|
|
2,066,567 |
|
|
||||||
Accrued expenses and other liabilities |
|
104,446 |
|
|
|
117,383 |
|
|
||||||
Total liabilities |
|
7,202,356 |
|
|
|
7,235,468 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
660,826 |
|
|
|
723,645 |
|
|
||||||
Noncontrolling interest |
|
1,458 |
|
|
|
1,458 |
|
|
||||||
Total equity |
|
662,284 |
|
|
|
725,103 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,864,640 |
|
|
$ |
7,960,571 |
|
|
||||||
Interest rate spread |
|
|
2.95 |
% |
|
|
2.80 |
% |
||||||
Net interest income/margin on earning assets |
|
|
174,052 |
|
3.05 |
% |
|
|
167,192 |
|
2.94 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(1,065 |
) |
|
|
|
(1,211 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
172,987 |
|
|
|
$ |
165,981 |
|
|
||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) |
||||||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Period End Balance Sheet |
Sep-22 |
Jun-22 |
Mar-22 |
Dec-21 |
Sep-21 |
Dec-21 |
||||||
Securities |
$ |
2,054,036 |
$ |
2,204,851 |
$ |
2,285,527 |
$ |
2,329,424 |
$ |
2,337,105 |
$ |
2,329,424 |
Total Loans |
|
5,208,436 |
|
5,162,503 |
|
5,063,451 |
|
5,075,467 |
|
5,096,778 |
|
5,075,467 |
Allowance for credit losses |
|
44,772 |
|
43,793 |
|
42,126 |
|
42,843 |
|
46,259 |
|
42,843 |
Total assets |
|
7,779,941 |
|
7,842,461 |
|
7,891,111 |
|
7,819,982 |
|
8,113,110 |
|
7,819,982 |
Total deposits |
|
6,936,726 |
|
6,769,521 |
|
7,016,739 |
|
6,791,435 |
|
7,090,898 |
|
6,791,435 |
Federal funds purchased and securities sold under agreements to repurchase |
|
55,340 |
|
50,075 |
|
57,115 |
|
66,787 |
|
72,490 |
|
66,787 |
Other borrowings |
|
101,000 |
|
295,600 |
|
60,000 |
|
124,000 |
|
110,000 |
|
124,000 |
Trust preferred debentures |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
Total common equity |
|
571,453 |
|
622,843 |
|
656,049 |
|
727,529 |
|
720,851 |
|
727,529 |
Total equity |
|
572,959 |
|
624,318 |
|
657,492 |
|
728,941 |
|
722,357 |
|
728,941 |
Average Balance Sheet |
|
|
|
|
|
|
||||||
Average earning assets |
$ |
7,639,123 |
$ |
7,621,588 |
$ |
7,598,922 |
$ |
7,660,556 |
$ |
7,753,700 |
$ |
7,625,832 |
Average assets |
|
7,853,847 |
|
7,830,645 |
|
7,910,047 |
|
7,993,816 |
|
8,102,070 |
|
7,968,951 |
Average interest-bearing liabilities |
|
4,861,857 |
|
4,901,345 |
|
4,982,075 |
|
4,966,711 |
|
5,086,753 |
|
5,030,143 |
Average equity |
|
635,324 |
|
639,354 |
|
713,027 |
|
722,619 |
|
733,117 |
|
724,476 |
Share data |
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
|
14,289,022 |
|
14,317,415 |
|
14,400,003 |
|
14,452,775 |
|
14,494,533 |
|
14,568,763 |
Weighted average shares outstanding (diluted) |
|
14,367,149 |
|
14,387,601 |
|
14,478,183 |
|
14,532,480 |
|
14,568,334 |
|
14,648,167 |
Period-end shares outstanding |
|
14,483,757 |
|
14,504,604 |
|
14,561,450 |
|
14,661,001 |
|
14,659,195 |
|
14,661,001 |
Common equity book value per share |
$ |
39.45 |
$ |
42.94 |
$ |
45.05 |
$ |
49.62 |
$ |
49.17 |
$ |
49.62 |
Income Statement |
|
|
|
|
|
|
|||||||||
Net interest income |
$ |
58,111 |
$ |
58,262 |
$ |
56,614 |
|
$ |
57,811 |
$ |
56,098 |
|
$ |
223,792 |
|
Provision (credit) for credit loss expense (5) |
|
1,056 |
|
856 |
|
(520 |
) |
|
3,914 |
|
(1,232 |
) |
|
(2,219 |
) |
Noninterest income |
|
20,692 |
|
18,944 |
|
19,985 |
|
|
19,154 |
|
20,854 |
|
|
78,849 |
|
Noninterest expense (5) |
|
49,602 |
|
49,120 |
|
46,839 |
|
|
48,154 |
|
50,180 |
|
|
190,287 |
|
Income tax expense |
|
6,774 |
|
6,329 |
|
6,976 |
|
|
5,401 |
|
6,630 |
|
|
25,182 |
|
Net income attributable to Tompkins Financial Corporation |
|
21,340 |
|
20,869 |
|
23,273 |
|
|
19,465 |
|
21,342 |
|
|
89,264 |
|
Noncontrolling interests |
|
31 |
|
32 |
|
31 |
|
|
31 |
|
32 |
|
|
127 |
|
Basic earnings per share (4) |
|
1.49 |
|
1.45 |
|
1.61 |
|
|
1.34 |
|
1.46 |
|
|
6.08 |
|
Diluted earnings per share (4) |
|
1.48 |
|
1.45 |
|
1.60 |
|
|
1.33 |
|
1.45 |
|
|
6.05 |
|
Nonperforming Assets |
|
|
|
|
|
|
||||||
Nonaccrual loans and leases |
$ |
30,013 |
$ |
24,665 |
$ |
25,200 |
$ |
26,033 |
$ |
47,941 |
$ |
26,033 |
Loans and leases 90 days past due and accruing |
|
161 |
|
62 |
|
0 |
|
0 |
|
7,463 |
|
0 |
Troubled debt restructuring not included above |
|
4,730 |
|
4,872 |
|
5,064 |
|
5,124 |
|
5,343 |
|
5,124 |
Total nonperforming loans and leases |
|
34,904 |
|
29,599 |
|
30,264 |
|
31,157 |
|
60,747 |
|
31,157 |
OREO |
|
335 |
|
122 |
|
88 |
|
135 |
|
135 |
|
135 |
Total nonperforming assets |
$ |
35,239 |
$ |
29,721 |
$ |
30,352 |
$ |
31,292 |
$ |
60,882 |
$ |
31,292 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued |
||||||||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Delinquency - Total loan and lease portfolio |
Sep-22 |
Jun-22 |
Mar-22 |
Dec-21 |
Sep-21 |
Dec-21 |
||||||
Loans and leases 30-89 days past due and |
|
|
|
|
|
|
||||||
accruing |
$ |
3,160 |
$ |
9,837 |
$ |
1,735 |
$ |
3,072 |
$ |
1,436 |
$ |
3,072 |
Loans and leases 90 days past due and accruing |
|
0 |
|
0 |
|
0 |
|
0 |
|
7,463 |
|
0 |
Total loans and leases past due and accruing |
|
3,160 |
|
9,837 |
|
1,735 |
|
3,072 |
|
8,899 |
|
3,072 |
Allowance for Credit Losses |
|||||||||||||||||
Balance at beginning of period |
$ |
43,793 |
|
$ |
42,126 |
|
$ |
42,843 |
|
$ |
46,259 |
$ |
47,505 |
|
$ |
51,669 |
|
Provision (credit) for credit losses |
|
1,101 |
|
|
780 |
|
|
(734 |
) |
|
3,600 |
|
(1,177 |
) |
$ |
(2,805 |
) |
Net loan and lease charge-offs (recoveries) |
|
122 |
|
|
(887 |
) |
|
(17 |
) |
|
7,016 |
|
69 |
|
$ |
6,021 |
|
Allowance for credit losses at end of period |
$ |
44,772 |
|
$ |
43,793 |
|
$ |
42,126 |
|
$ |
42,843 |
$ |
46,259 |
|
$ |
42,843 |
|
|
|
|
|
|
|
|
|||||||||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
|||||||||||||||||
Balance at beginning of period |
$ |
2,796 |
|
$ |
2,720 |
|
$ |
2,506 |
|
$ |
2,192 |
$ |
2,247 |
|
$ |
1,920 |
|
(Credit) provision for credit losses |
|
(45 |
) |
|
76 |
|
|
214 |
|
|
314 |
|
(55 |
) |
$ |
586 |
|
Allowance for credit losses at end of period |
$ |
2,751 |
|
$ |
2,796 |
|
$ |
2,720 |
|
$ |
2,506 |
$ |
2,192 |
|
$ |
2,506 |
|
Loan Classification - Total Portfolio |
|
|
|
|
|
|
||||||
Special Mention |
$ |
66,730 |
$ |
72,270 |
$ |
92,380 |
$ |
85,530 |
$ |
98,253 |
$ |
85,530 |
Substandard |
|
40,007 |
|
42,756 |
|
42,722 |
|
52,047 |
|
70,213 |
|
52,047 |
Ratio Analysis |
||||||||||||
Credit Quality |
|
|
|
|
|
|
||||||
Nonperforming loans and leases/total loans and leases |
0.67 |
% |
0.57 |
% |
0.60 |
% |
0.61 |
% |
1.19 |
% |
0.61 |
% |
Nonperforming assets/total assets |
0.45 |
% |
0.38 |
% |
0.38 |
% |
0.40 |
% |
0.75 |
% |
0.40 |
% |
Allowance for credit losses/total loans and leases |
0.86 |
% |
0.85 |
% |
0.83 |
% |
0.84 |
% |
0.91 |
% |
0.84 |
% |
Allowance/nonperforming loans and leases |
128.27 |
% |
147.95 |
% |
139.20 |
% |
137.51 |
% |
76.15 |
% |
137.49 |
% |
Net loan and lease losses annualized/total average loans and leases |
0.01 |
% |
(0.07 |
)% |
0.00 |
% |
0.55 |
% |
0.01 |
% |
0.12 |
% |
Capital Adequacy |
|
|
|
|
|
|
||||||
Tier 1 Capital (to average assets) |
9.14 |
% |
9.02 |
% |
8.89 |
% |
8.72 |
% |
8.54 |
% |
8.75 |
% |
Total Capital (to risk-weighted assets) |
14.26 |
% |
14.07 |
% |
14.23 |
% |
14.23 |
% |
14.21 |
% |
14.39 |
% |
Profitability (period-end) |
|
|
|
|
|
|
||||||
Return on average assets * |
1.08 |
% |
1.07 |
% |
1.19 |
% |
0.97 |
% |
1.05 |
% |
1.12 |
% |
Return on average equity * |
13.33 |
% |
13.09 |
% |
13.24 |
% |
10.69 |
% |
11.55 |
% |
12.32 |
% |
Net interest margin (TE) * |
3.04 |
% |
3.09 |
% |
3.04 |
% |
3.01 |
% |
2.89 |
% |
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005056/en/
Contacts
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753
