Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company")
reported diluted earnings per share of $1.05 for the fourth quarter
of 2023, down 22.8% compared to the fourth quarter of 2022. Net
income for the fourth quarter of 2023 was $15.0 million, down $4.5
million or 23.3% compared to the $19.5 million reported for the
fourth quarter of 2022. Contributing to the lower quarterly results
were increased funding costs and increased operating expenses,
which included costs related to three branch closures during the
fourth quarter of 2023 as well as personnel-related charges.
For the year ended December 31, 2023, diluted earnings per share
of $0.66 were down 88.8% compared to the year ended December 31,
2022. Net income for 2023 was $9.5 million, a decrease of $75.5
million compared to the year ended December 31, 2022. Significant
contributors to the year-over-year decrease in net income included
a previously announced after-tax loss of $52.9 million, or $3.69
loss per diluted share, related to the sale of $510.5 million of
available-for-sale debt securities, increased funding costs and an
increase in operating expenses. The sale of securities and
subsequent reinvestment in the second and third quarters of 2023 is
favorably impacting securities revenue as the securities sold had
an average yield of 0.86%, while the proceeds of the sale were
largely reinvested into securities with an estimated yield of
approximately 5.09%. Average yields on securities for the fourth
quarter of 2023 were 2.33%, compared to 1.59% for the third quarter
of 2023, and 1.44% for the fourth quarter of 2022.
Tompkins President and CEO, Stephen Romaine, commented, "In the
fourth quarter we continued to execute on strategic initiatives and
are pleased to announce our expanded presence in Syracuse with the
grand opening of our City Center office. For the quarter we saw
positive momentum with our net interest margin expanding, strong
quarterly loan growth driving full year loan growth of 6.4%, signs
of stabilization in our deposit base and growth in our noninterest
related revenue. During the quarter we also recognized
non-recurring expenses relating to three branch closures and other
personnel-related expenses intended to help offset future expense
growth. While the economic environment remains challenging for the
industry we look forward to 2024 with our strong capital and
liquidity position to continue to drive growth of quality customer
relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Net interest margin for the fourth quarter of 2023 expanded to
2.82%, compared to 2.75% for the third quarter of 2023.
- Total loans at December 31, 2023 were up $171.1 million, or
3.2% (12.6% on an annualized basis), compared to the immediate
prior quarter, and up $337.0 million, or 6.4%, from December 31,
2022.
- Total deposits at December 31, 2023 were $6.4 billion, down
$223.6 million, or 3.4% (13.5% on an annualized basis), from
September 30, 2023, and down $202.5 million, or 3.1%, from December
31, 2022.
- Loan to deposit ratio was 87.6%, compared to 82.1% for the
immediate prior quarter.
- Regulatory Tier 1 capital to average assets was 9.08% at
December 31, 2023, compared to 9.01% at September 30, 2023 and
9.34% at December 31, 2022.
NET INTEREST INCOME
Net interest income was $52.4 million for the fourth quarter of
2023, up from $51.0 million for the third quarter of 2023 and down
from $57.3 million for the fourth quarter of 2022. Net interest
margin was 2.82% for the fourth quarter of 2023, compared to 2.75%
reported for the third quarter of 2023 and 3.02% reported for the
fourth quarter of 2022. The increase in net interest income and net
interest margin during the fourth quarter of this year compared to
the third quarter of 2023 was primarily due to securities purchased
in the second and third quarter of 2023 yielding higher interest
rates compared to securities sold during the same periods. The
increase in securities yields was partially offset by the reversal
of $1.0 million of accrued interest during the fourth quarter
related to loans that moved to nonaccrual status during the
quarter, as described further below under the heading Asset
Quality. The decreases in net interest income and net interest
margin compared to the fourth quarter of last year were primarily
attributable to increased interest costs on interest-bearing
liabilities outpacing increased interest income on interest earning
assets due to the higher interest rate environment.
For the year ended December 31, 2023, net interest income was
$209.5 million, down $20.8 million, or 9.0%, when compared to the
same period in 2022.
Average loans for the quarter ended December 31, 2023 were up
$101.5 million, or 1.9%, from the third quarter of 2023, and were
up $277.0 million, or 5.3%, compared to the quarter ended December
31, 2022. 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 December 31, 2023
was 4.3%, which was up from 4.1% for the quarter ended September
30, 2023, and up from 3.6% for the quarter ended December 31,
2022.
Average total deposits for the fourth quarter of 2023 were up
$58.4 million, or 0.9%, compared to the third quarter of 2023,
while period end balances were down $223.6 million compared to the
third quarter of 2023 driven by seasonal deposit trends. Average
deposits for the quarter were down $227.8 million, or 3.4%,
compared to the same period in 2022. 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 increased to 2.04% for the fourth quarter
of 2023, compared to 1.74% for the third quarter of 2023, and 0.69%
for the fourth quarter of 2022. The cost of interest-bearing
deposits for the fourth quarter of 2023 increased 135 basis points
compared to the fourth quarter of 2022, and 123 basis points for
the year ended December 31, 2023 compared to the same period in
2022. The ratio of average noninterest bearing deposits to average
total deposits for the fourth quarter of 2023 was 29.6% compared to
31.0% for the third quarter of 2023, and 30.8% for the year ended
December 31, 2023. The average cost of interest-bearing liabilities
for the fourth quarter of 2023 of 2.25% represents an increase of
27 basis points over the third quarter of 2023, and an increase of
141 basis points over the same period in 2022.
NONINTEREST INCOME
Noninterest income of $18.9 million for the fourth quarter of
2023 was up 2.7% compared to the same period in 2022. The increase
was mainly due to gains on securities transactions of $46,000
compared to losses on securities transactions of $455,000, and
increases in fee-based revenues which include insurance commissions
and fees, up $143,000, wealth management fees, up $181,000 and card
services income, up $68,000.
Noninterest income for the year ended December 31, 2023 was
$10.2 million, which represents a decrease in noninterest income of
$67.7 million compared to the same period in 2022. The decrease in
noninterest income was largely due to the previously noted sales of
available-for-sale debt securities, mainly in the third quarter of
2023, which resulted in the recognition of a pre-tax loss of $70.0
million for the year ended December 31, 2023. Fee-based revenues,
including insurance commissions and fees, wealth management fees,
service charges on deposit accounts and card services income, for
the year ended December 31, 2023 were collectively up $1.0 million,
or 1.4%, over the same period in 2022.
NONINTEREST EXPENSE
Noninterest expense was $51.3 million for the fourth quarter of
2023, which was up $1.1 million, or 2.2%, over the fourth quarter
of 2022. The increases were mainly in premises and furniture and
fixtures, up $799,000, and other operating expenses, up $1.7
million; partially offset by lower salaries and wages. The increase
in premises and furniture and fixtures was mainly due to $720,000
of expense related to branch closures. Contributing to the increase
in other operating expense were: FDIC expense, up $723,000;
technology, up $434,000; expenses related to the Company's
retirement plans, up $428,000; charitable contributions and
donations, up $315,000; and accrual for New York State minimum tax,
up $207,000. Salaries and wages included $638,000 of
personnel-related charges, which were more than offset by lower
incentive related accruals.
For the year-to-date period, noninterest expense of $203.3
million was up $7.5 million, or 3.9%, from the same period in 2022.
The increase in noninterest expense for the year-ended December 31,
2023 over the same period in 2022 was mainly in employee benefits
and other noninterest expense. The increase in employee benefits
was mainly in health insurance, which was up $1.8 million. Salaries
and wages were down as annual merit increases were offset by lower
incentive related accruals. Contributing to the increases in other
expenses were the following: FDIC insurance, up $1.5 million; New
York State minimum tax expense, up $830,000; professional fees, up
$604,000; and charitable donations, up $317,000. Premises and
furniture and fixtures expenses were up over prior year mainly as a
result of expense related to branch closures of $879,000.
INCOME TAX EXPENSE
The provision for income tax expense of $3.1 million for an
effective rate of 17.2% for the fourth quarter of 2023, compared to
tax expense of $4.5 million and an effective rate of 18.6% for the
same quarter in 2022. The fourth quarter 2023 included the impact
of surrendering certain separate account BOLI policies, which added
$1.8 million to tax expense for the quarter. For the year-ended
2023, the provision for income tax expense of $2.5 million for an
effective rate of 20.6% compared to tax expense of $24.6 million
and an effective rate of 22.4% for the same period in 2022. The
decrease in income tax expense between comparable periods reflects
the decrease in pre-tax income, due primarily to the realized
losses on the sale of certain available-for-sale securities.
ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans
and leases at December 31, 2023, up from 0.91% at September 30,
2023, and up from 0.87% at December 31, 2022. The ratio of the
allowance to total nonperforming loans and leases was 82.84% at
December 31, 2023, compared to 156.96% at September 30, 2023 and
139.86% at December 31, 2022. The decrease in the ratio compared to
prior periods was due to the increase in nonperforming loans and
leases discussed in more detail below.
Provision for credit losses for the fourth quarter of 2023 was
$1.8 million compared to $1.4 million for the same period in 2022.
Provision for credit losses for the year ended December 31, 2023
was $4.3 million, compared to $2.8 million for the year ended
December 31, 2022. The increase in provision expense for both the
quarter and year-to-date periods was mainly driven by loan growth,
economic forecasts, and changes in asset quality. Net charge-offs
for the fourth quarter of 2023 were $410,000 compared to net
charge-offs of $190,000 reported for the same period in 2022.
Nonperforming assets represented 0.80% of total assets at
December 31, 2023, up from 0.41% reported at September 30, 2023 and
0.43% at December 31, 2022. At December 31, 2023, nonperforming
loans and leases totaled $62.3 million, compared to $31.4 million
at September 30, 2023 and $32.8 million at December 31, 2022. The
increase in nonperforming loans at quarter-end December 31, 2023,
was mainly due to the addition of one relationship with two
commercial real estate properties in the hospitality portfolio
totaling approximately $33.8 million. The Company believes that the
existing collateral securing the loans is sufficient to cover the
exposure as of December 31, 2023. These loans were included in
loans past due 30-89 days and accruing at the end of third quarter
of 2023. Loans past due 30-89 days and accruing as a percentage of
total loans decreased from 0.75% at the end of the third quarter of
2023 to 0.08% at the end of the fourth quarter of 2023.
Special Mention and Substandard loans and leases totaled $123.1
million at December 31, 2023, reflecting an increase from the
$122.9 million reported at September 30, 2023, and $98.3 million
reported at December 31, 2022.
CAPITAL POSITION
Capital ratios at December 31, 2023 remained well above the
regulatory minimums for well-capitalized institutions. The ratio of
total capital to risk-weighted assets was 13.36% at December 31,
2023, compared to 13.46% at September 30, 2023, and 14.42% at
December 31, 2022. The ratio of Tier 1 capital to average assets
was 9.08% at December 31, 2023, compared to 9.01% at September 30,
2023, and 9.34% at December 31, 2022.
LIQUIDITY POSITION
The Company's liquidity position at December 31, 2023 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 $1.4 billion, or 18.3% of total assets at
December 31, 2023. As a member of the FHLB, the Company can use
certain unencumbered mortgage-related assets and securities to
secure borrowings from the FHLB. At December 31, 2023 the Company
had an available borrowing capacity at the FHLB of $642 million.
Through various programs at the Federal Reserve Bank, the Company
has the ability to use certain unencumbered mortgage-related assets
and securities to secure borrowings from the Federal Reserve Bank's
Discount Window. At December 31, 2023 the available borrowing
capacity with the Federal Reserve Bank was $92.6 million, secured
by investment securities. In addition to the available borrowing
lines at the FHLB and Federal Reserve Bank, at December 31, 2023,
the Company maintained $687.0 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", or "anticipate", the negative and other
variations of these terms and other similar words. Examples of
forward-looking statements may include statements regarding the
expected increases in revenue attributable to the reinvestment of
proceeds from the sale of available-for-sale debt securities in
securities with higher estimated yields and the sufficiency of
existing collateral to cover exposure related to nonperforming
loans. 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; GDP
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
12/31/2023
12/31/2022
(Audited)
Cash and noninterest bearing balances due
from banks
$
67,212
$
18,572
Interest bearing balances due from
banks
12,330
59,265
Cash and Cash
Equivalents
79,542
77,837
Available-for-sale debt securities, at
fair value (amortized cost of $1,548,482 at December 31, 2023 and
$1,831,791 at December 31, 2022)
1,416,650
1,594,967
Held-to-maturity debt securities, at
amortized cost (fair value of $267,455 at December 31, 2023 and
$261,692 at December 31, 2022)
312,401
312,344
Equity securities, at fair value
787
777
Total loans and leases, net of unearned
income and deferred costs and fees
5,605,935
5,268,911
Less: Allowance for credit losses
51,584
45,934
Net Loans and Leases
5,554,351
5,222,977
Federal Home Loan Bank and other stock
33,719
17,720
Bank premises and equipment, net
79,687
82,140
Corporate owned life insurance
67,884
85,556
Goodwill
92,602
92,602
Other intangible assets, net
2,327
2,708
Accrued interest and other assets
179,799
181,058
Total Assets
$
7,819,749
$
7,670,686
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,484,878
3,820,739
Time
998,013
631,411
Noninterest bearing
1,916,956
2,150,145
Total Deposits
6,399,847
6,602,295
Federal funds purchased and securities
sold under agreements to repurchase
50,996
56,278
Other borrowings
602,100
291,300
Other liabilities
96,872
103,423
Total Liabilities
$
7,149,815
$
7,053,296
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,441,830 at December 31,
2023; and 14,555,741 at December 31, 2022
1,444
1,456
Additional paid-in capital
297,183
302,763
Retained earnings
501,510
526,727
Accumulated other comprehensive loss
(125,005
)
(208,689
)
Treasury stock, at cost – 132,097 shares
at December 31, 2023, and 128,749 shares at December 31, 2022
(6,610
)
(6,279
)
Total Tompkins Financial
Corporation Shareholders’ Equity
668,522
615,978
Noncontrolling interests
1,412
1,412
Total Equity
$
669,934
$
617,390
Total Liabilities and
Equity
$
7,819,749
$
7,670,686
TOMPKINS FINANCIAL
CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Year Ended
12/31/2023
12/31/2022
12/31/2023
12/31/2022
INTEREST AND DIVIDEND INCOME
Loans
$
69,035
$
58,930
$
260,434
$
217,607
Due from banks
227
181
674
371
Available-for-sale debt securities
9,717
6,939
29,677
27,929
Held-to-maturity debt securities
1,222
1,221
4,876
4,771
Federal Home Loan Bank and other stock
584
254
1,697
646
Total Interest and Dividend
Income
80,785
$
67,525
$
297,358
$
251,324
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
3,949
909
11,421
2,298
Other deposits
19,526
6,973
59,387
13,870
Federal funds purchased and securities
sold under agreements to repurchase
14
14
58
60
Other borrowings
4,937
2,335
16,978
4,815
Total Interest Expense
28,426
10,231
87,844
21,043
Net Interest Income
52,359
57,294
209,514
230,281
Less: Provision for credit loss
expense
1,761
1,397
4,339
2,789
Net Interest Income After
Credit for Credit Loss Expense
50,598
55,897
205,175
227,492
NONINTEREST INCOME
Insurance commissions and fees
7,773
7,630
37,351
36,201
Wealth management fees
4,422
4,241
17,951
18,091
Service charges on deposit accounts
1,773
1,913
6,913
7,365
Card services income
2,859
2,791
11,488
11,024
Other income
1,977
2,231
6,511
5,925
Net gain (loss) on securities
transactions
46
(455
)
(69,973
)
(634
)
Total Noninterest Income
18,850
18,351
10,241
77,972
NONINTEREST EXPENSE
Salaries and wages
23,710
25,249
97,370
98,261
Other employee benefits
6,626
6,342
27,333
24,969
Net occupancy expense of premises
3,544
3,163
13,278
13,093
Furniture and fixture expense
2,425
2,007
8,663
8,058
Amortization of intangible assets
84
218
334
873
Other operating expense
14,911
13,211
56,314
50,497
Total Noninterest Expenses
51,300
50,190
203,292
195,751
Income Before Income Tax
Expense
18,148
24,058
12,124
109,713
Income Tax Expense
3,114
4,478
2,495
24,557
Net Income Attributable to
Noncontrolling Interests and Tompkins Financial Corporation
15,034
19,580
9,629
85,156
Less: Net Income Attributable to
Noncontrolling Interests
31
32
124
126
Net Income Attributable to
Tompkins Financial Corporation
$
15,003
19,548
9,505
85,030
Basic Earnings Per Share
$
1.06
$
1.36
$
0.66
$
5.92
Diluted Earnings Per Share
$
1.05
$
1.36
$
0.66
$
5.89
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
December 31, 2023
December 31, 2022
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
$
14,351
$
227
6.28
%
$
58,488
$
181
1.23
%
Securities (1)
U.S. Government securities
1,789,043
10,411
2.31
%
2,186,858
7,627
1.38
%
State and municipal (2)
90,070
574
2.53
%
94,377
608
2.56
%
Other securities (2)
3,242
60
7.37
%
3,270
47
5.68
%
Total securities
1,882,355
11,045
2.33
%
2,284,505
8,282
1.44
%
FHLBNY and FRB stock
24,555
584
9.44
%
15,942
255
6.33
%
Total loans and leases, net of unearned
income (2)(3)
5,486,715
69,197
5.00
%
5,209,721
59,140
4.50
%
Total interest-earning assets
7,407,976
81,053
4.34
%
7,568,656
67,858
3.56
%
Other assets
259,006
152,679
Total assets
$
7,666,982
$
7,721,335
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,643,919
$
14,915
1.62
%
$
3,905,570
$
5,888
0.60
%
Time deposits
925,790
8,560
3.67
%
615,493
1,994
1.28
%
Total interest-bearing deposits
4,569,709
23,475
2.04
%
4,521,063
7,882
0.69
%
Federal funds purchased & securities
sold under agreements to repurchase
51,903
14
0.10
%
55,701
14
0.10
%
Other borrowings
398,932
4,937
4.91
%
251,797
2,335
3.68
%
Total interest-bearing
liabilities
5,020,544
28,426
2.25
%
4,828,561
10,231
0.84
%
Noninterest bearing deposits
1,920,510
2,196,992
Accrued expenses and other liabilities
103,648
115,063
Total liabilities
7,044,702
7,140,615
Tompkins Financial Corporation
Shareholders’ equity
620,789
579,223
Noncontrolling interest
1,491
1,497
Total equity
622,280
580,720
Total liabilities and equity
$
7,666,982
$
7,721,335
Interest rate spread
2.09
%
2.72
%
Net interest income/margin on earning
assets
52,627
2.82
%
57,627
3.02
%
Tax Equivalent Adjustment
(268
)
(333
)
Net interest income per consolidated
financial statements
$
52,359
$
57,294
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Year to Date Period
Ended
Year to Date Period
Ended
December 31, 2023
December 31, 2022
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(YTD)
Interest
Yield/Rate
(YTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
13,064
$
674
5.16
%
$
85,788
$
371
0.43
%
Securities (1)
U.S. Government securities
1,920,678
32,433
1.69
%
2,265,226
30,587
1.35
%
State and municipal (2)
91,407
2,338
2.56
%
97,283
2,490
2.56
%
Other securities (2)
3,272
229
6.99
%
3,329
135
4.06
%
Total securities
2,015,357
35,000
1.74
%
2,365,838
33,212
1.40
%
FHLBNY and FRB stock
22,284
1,697
7.63
%
13,354
646
4.84
%
Total loans and leases, net of unearned
income (2)(3)
5,357,699
261,144
4.87
%
5,142,098
218,494
4.25
%
Total interest-earning assets
7,408,404
298,515
4.03
%
7,607,078
252,723
3.32
%
Other assets
233,268
221,442
Total assets
$
7,641,672
$
7,828,520
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,697,780
$
46,820
1.27
%
$
4,029,008
$
10,389
0.26
%
Time deposits
793,709
23,988
3.02
%
611,708
5,779
0.94
%
Total interest-bearing deposits
4,491,489
70,808
1.58
%
4,640,716
16,168
0.35
%
Federal funds purchased & securities
sold under agreements to repurchase
55,773
58
0.10
%
57,126
60
0.10
%
Other borrowings
363,530
16,978
4.67
%
195,110
4,815
2.47
%
Total interest-bearing
liabilities
4,910,792
87,844
1.79
%
4,892,952
21,043
0.43
%
Noninterest bearing deposits
1,994,861
2,186,720
Accrued expenses and other liabilities
101,287
107,122
Total liabilities
7,006,940
7,186,794
Tompkins Financial Corporation
Shareholders’ equity
633,267
640,258
Noncontrolling interest
1,465
1,468
Total equity
634,732
641,726
Total liabilities and equity
$
7,641,672
$
7,828,520
Interest rate spread
2.24
%
2.89
%
Net interest income/margin on earning
assets
210,671
2.84
%
231,680
3.05
%
Tax Equivalent Adjustment
(1,157
)
(1,399
)
Net interest income per consolidated
financial statements
$
209,514
$
230,281
Tompkins Financial Corporation - Summary Financial Data
(Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Securities
$
1,729,838
$
1,701,636
$
1,781,150
$
1,899,001
$
1,908,088
$
1,729,838
Total Loans
5,605,935
5,434,860
5,352,365
5,273,671
5,268,911
5,605,935
Allowance for credit losses
51,584
49,336
48,545
46,099
45,934
51,584
Total assets
7,819,749
7,691,162
7,626,238
7,644,371
7,670,686
7,819,749
Total deposits
6,399,847
6,623,436
6,454,651
6,509,009
6,602,295
6,399,847
Federal funds purchased and securities
sold under agreements to repurchase
50,996
56,120
50,483
63,491
56,278
50,996
Other borrowings
602,100
296,800
387,100
327,000
291,300
602,100
Total common equity
668,522
610,851
634,967
648,322
615,978
668,522
Total equity
669,934
612,356
636,441
649,765
617,390
669,934
Average Balance Sheet
Average earning assets
$
7,407,976
$
7,405,434
$
7,409,714
$
7,410,553
$
7,568,656
$
7,408,404
Average assets
7,666,982
7,629,876
7,635,800
7,633,793
7,721,335
7,641,672
Average interest-bearing liabilities
5,020,544
4,902,930
4,883,026
4,834,712
4,828,561
4,910,792
Average equity
622,280
634,980
650,554
631,208
580,720
634,732
Share data
Weighted average shares outstanding
(basic)
14,194,503
14,185,763
14,314,133
14,326,595
14,308,323
14,254,661
Weighted average shares outstanding
(diluted)
14,246,024
14,224,748
14,346,787
14,389,673
14,385,884
14,301,221
Period-end shares outstanding
14,405,920
14,350,177
14,405,503
14,519,748
14,519,831
14,405,920
Common equity book value per share
$
46.41
$
42.57
$
44.08
$
44.65
$
42.42
$
46.41
Tangible book value per share
(Non-GAAP)**
$
39.88
$
36.01
$
37.54
$
38.16
$
35.93
$
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
$
52,359
$
51,013
$
51,896
$
54,246
$
57,294
$
209,514
Provision (credit) for credit loss expense
(5)
1,761
1,150
2,253
(825
)
1,397
4,339
Noninterest income
18,850
(41,624
)
12,615
20,400
18,351
10,241
Noninterest expense (5)
51,300
49,866
51,968
50,158
50,190
203,292
Income tax expense/(benefit)
3,114
(8,304
)
1,784
5,901
4,478
2,495
Net (loss)/income attributable to Tompkins
Financial Corporation
15,003
(33,354
)
8,475
19,381
19,548
9,505
Noncontrolling interests
31
31
31
31
32
124
Basic earnings (loss) per share (4)
1.06
(2.35
)
0.59
1.35
1.36
0.66
Diluted earnings (loss) per share (4)
1.05
(2.35
)
0.59
1.35
1.36
0.66
Nonperforming Assets
Nonaccrual loans and leases
$
62,165
$
31,381
$
31,333
$
28,424
$
28,289
$
62,165
Loans and leases 90 days past due and
accruing
101
52
34
13
25
101
Performing troubled debt
restructuring*
0
0
0
0
4,530
0
Total nonperforming loans and leases
62,266
31,433
31,367
28,437
32,844
62,266
OREO
131
0
36
36
152
131
Total nonperforming assets
$
62,397
$
31,433
$
31,403
$
28,473
$
32,996
$
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
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Loans and leases 30-89 days past due
and
accruing
$
4,210
$
40,893
$
20,255
$
5,894
$
3,172
$
4,210
Loans and leases 90 days past due and
accruing
101
52
34
13
25
101
Total loans and leases past due and
accruing
4,311
40,945
20,289
5,907
3,197
4,311
Allowance for Credit Losses
Balance at beginning of period
$
49,336
$
48,545
$
46,099
$
45,934
$
44,772
$
45,934
Impact of adopting ASC 326
0
0
0
64
0
64
Provision (credit) for credit losses
2,658
968
2,419
(1,180
)
1,352
$
4,865
Net loan and lease (recoveries)
charge-offs
410
177
(27
)
(1,281
)
190
$
(721
)
Allowance for credit losses at end of
period
$
51,584
$
49,336
$
48,545
$
46,099
$
45,934
$
51,584
Allowance for Credit Losses -
Off-Balance Sheet Exposure
Balance at beginning of period
$
3,167
$
2,985
$
3,151
$
2,796
$
2,751
$
2,796
(Credit) provision for credit losses
(897
)
182
(166
)
355
45
$
(526
)
Allowance for credit losses at end of
period
$
2,270
$
3,167
$
2,985
$
3,151
$
2,796
$
2,270
Loan Classification - Total
Portfolio
Special Mention
$
50,368
$
65,993
$
56,305
$
39,255
$
49,752
$
50,368
Substandard
72,717
56,947
61,820
46,315
48,537
72,717
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases
1.11 %
0.58 %
0.59 %
0.54 %
0.62 %
1.11 %
Nonperforming assets/total assets
0.80 %
0.41 %
0.41 %
0.37 %
0.43 %
0.80 %
Allowance for credit losses/total loans
and leases
0.92 %
0.91 %
0.91 %
0.87 %
0.87 %
0.92 %
Allowance/nonperforming loans and
leases
82.84 %
156.96 %
154.76 %
162.11 %
139.86 %
82.84 %
Net loan and lease losses (recoveries)
annualized/total average loans and leases
0.03 %
0.01 %
0.00 %
(0.10) %
0.01 %
(0.01) %
Capital Adequacy
Tier 1 Capital (to average assets)
9.08 %
9.01 %
9.57 %
9.63 %
9.34 %
9.08 %
Total Capital (to risk-weighted
assets)
13.36 %
13.46 %
14.48 %
14.62 %
14.42 %
13.36 %
Profitability (period-end)
Return on average assets *
0.78 %
(1.73) %
0.45 %
1.03 %
1.00 %
0.12 %
Return on average equity *
9.56 %
(20.84) %
5.22 %
12.45 %
13.36 %
1.50 %
Net interest margin (TE) *
2.82 %
2.75 %
2.83 %
2.99 %
3.02 %
2.84 %
* 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 accounting principles
generally accepted in the United States of America (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
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Total common equity
$
668,522
$
610,851
$
634,967
$
648,322
$
615,978
$
668,522
Less: Goodwill and intangibles
94,003
94,086
94,169
94,253
94,336
94,003
Tangible common equity (Non-GAAP)
574,519
516,765
540,798
554,069
521,642
574,519
Ending shares outstanding
14,405,920
14,350,177
14,405,503
14,519,748
14,519,831
14,405,920
Tangible book value per share
(Non-GAAP)
$
39.88
$
36.01
$
37.54
$
38.16
$
35.93
$
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 2023 and 2022 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, 2022. (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/20240126335184/en/
For more information: Stephen S. Romaine, President &
CEO Matthew Tomazin, Executive VP, CFO & Treasurer Tompkins
Financial Corporation (888) 503-5753
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