Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company")
reported diluted earnings per share of $1.30 for the third quarter
of 2024, up 18.2% from the immediate prior quarter, and up 155.3%
from the diluted earnings (loss) per share of $(2.35) reported in
the third quarter of 2023. Net income for the third quarter of 2024
was $18.6 million, up $3.0 million or 18.9% compared to the second
quarter of 2024, and up $52.0 million, or 155.9%, when compared to
the net loss of $(33.4) million reported for the third quarter of
2023. The increase in diluted earnings per share and net income
compared to the results for the third quarter of 2023 largely
reflects the Company's sale of $429.6 million of available-for-sale
securities, which resulted in a pre-tax loss of $62.9 million (or
$3.34 per share) in the third quarter of 2023.
For the nine months ended September 30, 2024, diluted earnings
(loss) per share were $3.59, up from $(0.39) for the nine months
ended September 30, 2023. Year-to-date net income (loss) was $51.2
million for the nine months ended September 30, 2024, up $56.7
million when compared to $(5.5) million for the prior year period.
The growth in year-to-date diluted earnings per share and net
income was mainly due the Company's sale of $510.5 million of
available-for-sale securities which resulted in a pre-tax loss of
$70.0 million (or $3.69 per share) for the nine months ended
September 30, 2023.
Tompkins President and CEO, Stephen Romaine, commented, "Our
third quarter net income was up over 18% as compared to the second
quarter, driven by a strengthening net interest margin and growth
across our business. For the third quarter our net interest margin
expanded 6 basis points, loan balances grew over 8% annualized and
our fee-based services continue to provide diversified growing
revenue as total noninterest income represented 31% of total
revenue. Year-to-date, our operating results were further supported
by lower expenses, as noninterest expenses were down 1.5% as
compared to prior year. As we are seeing improving profitability we
believe that we remain well positioned to continue to drive growth
through quality customer relationships supported by our strong
capital and liquidity."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Net interest margin for the third quarter of 2024 was 2.79%,
improved from the immediate prior quarter of 2.73%, and the 2.75%
reported for the same period of 2023.
- Total average cost of funds for the third quarter of 2024 was
up 5 basis points compared to the second quarter of 2024, down from
a 10 basis point increase from the first quarter of 2024 to the
second quarter of 2024.
- Total fee-based services (insurance, wealth management, service
charges on deposit accounts and cards) revenues for the third
quarter of 2024 were up $648,000 or 3.2% compared to the third
quarter of 2023.
- Total noninterest expenses for the third quarter of 2024 were
in line with the second quarter of 2024 and the third quarter of
2023.
- Total loans at September 30, 2024 were up $119.4 million, or
2.1% (8.2% on an annualized basis) compared to June 30, 2024, and
up $446.4 million, or 8.2%, from September 30, 2023.
- Total deposits at September 30, 2024 were $6.6 billion, up
$292.0 million, or 4.7%, from June 30, 2024, and down $45.5
million, or 0.7%, from September 30, 2023.
- Loan to deposit ratio at September 30, 2024 was 89.4%, compared
to 91.7% at June 30, 2024, and 82.1% at September 30, 2023.
- Regulatory Tier 1 capital to average assets was 9.19% at
September 30, 2024, up compared to 9.15% at June 30, 2024, and
9.01% at September 30, 2023.
NET INTEREST INCOME
Net interest income was $53.2 million for the third quarter of
2024, up $2.2 million or 4.4% compared to the second quarter of
2024, and $2.2 million or 4.3% compared to the third quarter of
2023. The increase in net interest income compared to both the
second quarter of 2024, and third quarter of 2023, resulted
primarily from the increase in average loan balances and the
average yield on those loan balances, partially offset by the
increase in cost of deposits.
For the nine months ended September 30, 2024, net interest
income was $154.8 million, down $2.3 million or 1.5% when compared
to the same period in 2023.
Net interest margin was 2.79% for the third quarter of 2024, up
6 basis points when compared to the immediate prior quarter, and up
4 basis points from the 2.75% reported for the third quarter of
2023. The increase in net interest margin, when compared to the
prior periods, was mainly driven by higher yields on interest
earning assets and higher average loan balances, and was partially
offset by higher funding costs.
Average loans for the quarter ended September 30, 2024 were up
$143.4 million, or 2.5%, from the second quarter of 2024, and were
up $445.7 million, or 8.3%, compared to the same period prior year.
The increase in average loans over both prior periods was mainly in
the commercial real estate and commercial and industrial
portfolios. The average yield on interest-earning assets for the
quarter ended September 30, 2024 was 4.66%, which was up from 4.56%
for the quarter ended June 30, 2024, and up from 4.06% for the
quarter ended September 30, 2023.
Average total deposits of $6.4 billion for the third quarter of
2024 were up $41.4 million, or 0.7%, compared to the second quarter
of 2024, and down $67.0 million or 1.0% compared to the same period
in 2023. The cost of interest-bearing deposits of 2.35% for the
third quarter of 2024 was up 8 basis points from 2.27% for the
second quarter of 2024, and up 61 basis points from 1.74% for the
third quarter of 2023. The ratio of average noninterest bearing
deposits to average total deposits for the third quarter of 2024
was 28.9% compared to 29.1% for the second quarter of 2024, and
31.0% for the third quarter of 2023. The average cost of
interest-bearing liabilities for the third quarter of 2024 of 2.71%
represents an increase of 7 basis points over the second quarter of
2024, and an increase of 73 basis points over the same period in
2023.
NONINTEREST INCOME
Noninterest income of $23.4 million for the third quarter of
2024 was up $65.0 million or 156.2% compared to the same period in
2023. Year-to-date noninterest income of $67.3 million was up $75.9
million or 881.7% compared to the same period in 2023. The increase
in quarterly and year-to-date noninterest income compared to the
same periods in 2023 was mainly due to the $62.9 million and $70.0
million, respectively, pre-tax loss on the sale of
available-for-sale securities in 2023 as discussed above. Other
income was up $1.3 million for the quarter ended September 30, 2024
compared to the same period in 2023, and included increases in
gains on loan sales, derivative swap fee income, and BOLI income.
Also included in the increase for the third quarter of 2024 over
the same period prior year were fee-based revenues which included
wealth management fees, up $583,000, service charges on deposit
accounts, up $118,000, card services income, up $61,000.
NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the third quarter of
2024, which was in line with the third quarter of 2023.
Year-to-date noninterest expense for the period ended September 30,
2024 was $149.7 million, a decrease of $2.3 million or 1.5%
compared to the $152.0 million reported for the same period in
2023. The year-over-year decrease was mainly driven by lower other
expenses (legal fees, marketing, professional fees, retirement plan
expense, and travel and meeting expense), partially offset by
higher FDIC insurance expense.
INCOME TAX EXPENSE
The provision for income tax expense was $5.9 million for an
effective rate of 23.9% for the third quarter of 2024, compared to
tax benefit of $8.3 million and an effective rate of 20.0% for the
same quarter in 2023. For the nine months ended September 30, 2024,
the provision for income tax expense was $16.0 million and the
effective tax rate was 23.7% compared to a tax benefit of $619,000
and an effective tax rate of 10.3% for the same period in 2023.
Lower tax expense for both the quarter and year-to-date periods in
2023 was mainly a result of lower income associated with the loss
on the sale of securities described above.
ASSET QUALITY
The allowance for credit losses represented 0.94% of total loans
and leases at September 30, 2024, up from 0.92% reported at both
June 30, 2024 and December 31, 2023. The increase in the allowance
for credit losses coverage ratio was driven primarily by updated
economic forecasts for unemployment and gross domestic product for
the quarter, as well as model assumption updates for prepayment
speeds, curtailment rates, and recovery lag. The increase in
allowance for credit losses was partially offset by lower
off-balance sheet reserves due to model changes related to
utilization rates and a decrease in loan pipeline. The ratio of the
allowance to total nonperforming loans and leases was 88.51% at
September 30, 2024, compared to 84.94% at June 30, 2024, and
156.96% at September 30, 2023. The decrease in the ratio compared
to the same prior year period was due to the increase in
nonperforming loans and leases discussed in more detail below.
Provision for credit losses for the third quarter of 2024 was
$2.2 million compared to $1.2 million for the same period in 2023.
Provision for credit losses for the nine months ended September 30,
2024 was $5.2 million compared to $2.6 million for the nine months
ended September 30, 2023. The increase in provision expense for the
quarter and year-to-date periods compared to the same periods in
2023 was mainly driven by loan growth which was up $119.4 million
or 2.1%, and $446.4 million or 8.2%, respectively, and the increase
in net charge-offs in 2024 over 2023. Net charge-offs for three and
nine months ended September 30, 2024 were $912,000 and $1.6
million, respectively, compared to net charge-offs of $177,000 and
net recoveries of $1.1 million for the same periods in 2023.
Nonperforming assets represented 0.78% of total assets at
September 30, 2024, down slightly from 0.79% reported at June 30,
2024, and up compared to 0.41% at September 30, 2023. At September
30, 2024, nonperforming loans and leases totaled $62.6 million,
compared to $62.5 million at June 30, 2024 and $31.4 million at
September 30, 2023. The increase in nonperforming loans and leases
at September 30, 2024 compared to September 30, 2023 was mainly due
to the addition in the fourth quarter of 2023 of one relationship
totaling approximately $33.3 million with two commercial real
estate properties included in the office space and mixed use
properties portion of the commercial real estate portfolio. The
Company believes that the existing collateral securing the loans
was sufficient to cover the exposure as of September 30, 2024.
Special Mention and Substandard loans and leases totaled $126.0
million at September 30, 2024, compared to $116.2 million reported
at June 30, 2024, and $122.9 million reported at September 30,
2023.
CAPITAL POSITION
Capital ratios at September 30, 2024 remained well above the
regulatory minimums for well-capitalized institutions. The ratio of
total capital to risk-weighted assets was 13.21% at September 30,
2024, compared to 13.26% at June 30, 2024, and 13.46% at September
30, 2023. The ratio of Tier 1 capital to average assets was 9.19%
at September 30, 2024, compared to 9.15% at June 30, 2024, and
9.01% at September 30, 2023.
LIQUIDITY POSITION
The Company's liquidity position at September 30, 2024 was
stable and consistent with the immediate prior quarter end.
Liquidity is enhanced by ready access to national and regional
wholesale funding sources including Federal funds purchased,
repurchase agreements, brokered deposits, Federal Reserve Bank's
Discount Window advances and Federal Home Loan Banks (FHLB)
advances. The Company maintained ready access to liquidity of $1.4
billion, or 18.0% of total assets at September 30, 2024. As a
member of the FHLB, the Company can use certain unencumbered
mortgage-related assets and securities to secure borrowings from
the FHLB. At September 30, 2024 the Company had an available
borrowing capacity at the FHLB of $769.5 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 September 30, 2024 the
available borrowing capacity with the Federal Reserve Bank was
$142.0 million, secured by loans. In addition to the available
borrowing lines at the FHLB and Federal Reserve Bank, at September
30, 2024, the Company maintained $508.7 million of unencumbered
securities which could be pledged to further enhance secured
borrowing capacity.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and financial
services company serving the Central, Western, and Hudson Valley
regions of New York and the Southeastern region of Pennsylvania.
Headquartered in Ithaca, NY, Tompkins Financial is parent to
Tompkins Community Bank and Tompkins Insurance Agencies, Inc.
Tompkins Community Bank provides a full array of wealth management
services under the Tompkins Financial Advisors brand, including
investment management, trust and estate, financial and tax planning
services. For more information on Tompkins Financial, visit
www.tompkinsfinancial.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995:
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The statements contained in this press release that are not
statements of historical fact may include forward-looking
statements that involve a number of risks and uncertainties.
Forward-looking statements may be identified by use of such words
as "may", "will", "estimate", "intend", "continue", "believe",
"expect", "plan", "commit", or "anticipate", as well as 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 future growth.
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 Report on Form 10-K and our Quarterly Reports
on Form 10-Q as filed with the Securities and Exchange Commission,
are among those that could cause actual results to differ
materially from the forward-looking statements: changes in general
economic, market and regulatory conditions; our ability to attract
and retain deposits and other sources of liquidity; gross domestic
product growth and inflation trends; the impact of the interest
rate and inflationary environment on the Company's business,
financial condition and results of operations; other income or cash
flow anticipated from the Company's operations, investment and/or
lending activities; changes in laws and regulations affecting
banks, bank holding companies and/or financial holding companies,
including the Dodd-Frank Act, and state and local government
mandates; the impact of any change in the FDIC insurance assessment
rate or the rules and regulations related to the calculation of the
FDIC insurance assessment amount; technological developments and
changes; cybersecurity incidents and threats; the ability to
continue to introduce competitive new products and services on a
timely, cost-effective basis; governmental and public policy
changes, including environmental regulation; reliance on large
customers; the ability to access financial resources in the
amounts, at the times, and on the terms required to support the
Company's future businesses; and the economic impact of national
and global events, including the response to bank failures, war and
geopolitical matters (including the war in Israel and surrounding
regions and the war in Ukraine), widespread protests, civil unrest,
political uncertainty, and pandemics or other public health crises.
The Company does not undertake any obligation to update its
forward-looking statements.
TOMPKINS FINANCIAL
CORPORATION
CONSOLIDATED STATEMENTS OF
CONDITION
(In thousands, except share and per share
data) (Unaudited)
As of
As of
ASSETS
9/30/2024
12/31/2023
(Audited)
Cash and noninterest bearing balances due
from banks
$
110,375
$
67,212
Interest bearing balances due from
banks
21,945
12,330
Cash and Cash
Equivalents
132,320
79,542
Available-for-sale debt securities, at
fair value (amortized cost of $1,410,405 at September 30, 2024 and
$1,548,482 at December 31, 2023)
1,309,279
1,416,650
Held-to-maturity debt securities, at
amortized cost (fair value of $276,599 at September 30, 2024 and
$267,455 at December 31, 2023)
312,446
312,401
Equity securities, at fair value
801
787
Total loans and leases, net of unearned
income and deferred costs and fees
5,881,261
5,605,935
Less: Allowance for credit losses
55,384
51,584
Net Loans and Leases
5,825,877
5,554,351
Federal Home Loan Bank and other stock
30,936
33,719
Bank premises and equipment, net
77,603
79,687
Corporate owned life insurance
75,966
67,884
Goodwill
92,602
92,602
Other intangible assets, net
2,238
2,327
Accrued interest and other assets
146,359
179,799
Total Assets
$
8,006,427
$
7,819,749
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,655,041
3,484,878
Time
1,042,007
998,013
Noninterest bearing
1,880,848
1,916,956
Total Deposits
6,577,896
6,399,847
Federal funds purchased and securities
sold under agreements to repurchase
67,506
50,996
Other borrowings
539,327
602,100
Other liabilities
100,350
96,872
Total Liabilities
$
7,285,079
$
7,149,815
EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 14,426,922 at September 30,
2024; and 14,441,830 at December 31, 2023
1,443
1,444
Additional paid-in capital
299,741
297,183
Retained earnings
526,423
501,510
Accumulated other comprehensive loss
(101,200
)
(125,005
)
Treasury stock, at cost – 129,317 shares
at September 30, 2024, and 132,097 shares at December 31, 2023
(6,552
)
(6,610
)
Total Tompkins Financial
Corporation Shareholders’ Equity
719,855
668,522
Noncontrolling interests
1,493
1,412
Total Equity
$
721,348
$
669,934
Total Liabilities and
Equity
$
8,006,427
$
7,819,749
TOMPKINS FINANCIAL
CORPORATION
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
9/30/2024
06/30/2024
9/30/2023
9/30/2024
9/30/2023
INTEREST AND DIVIDEND INCOME
Loans
$
77,814
$
73,646
$
67,030
$
223,059
$
191,399
Due from banks
168
184
125
506
447
Available-for-sale debt securities
9,037
9,371
6,599
28,019
19,960
Held-to-maturity debt securities
1,222
1,219
1,221
3,659
3,654
Federal Home Loan Bank and other stock
888
820
490
2,309
1,113
Total Interest and Dividend
Income
89,129
$
85,240
$
75,465
$
257,552
$
216,573
INTEREST EXPENSE
Time certificates of deposits of $250,000
or more
4,158
4,048
3,158
12,216
7,472
Other deposits
22,553
21,236
16,348
64,213
39,861
Federal funds purchased and securities
sold under agreements to repurchase
11
11
15
35
44
Other borrowings
9,214
8,992
4,931
26,267
12,041
Total Interest Expense
35,936
34,287
24,452
102,731
59,418
Net Interest Income
53,193
50,953
51,013
154,821
157,155
Less: Provision for credit loss
expense
2,174
2,172
1,150
5,200
2,578
Net Interest Income After
Provision for Credit Loss Expense
51,019
48,781
49,863
149,621
154,577
NONINTEREST INCOME
Insurance commissions and fees
11,283
9,087
11,397
30,629
29,578
Wealth management fees
4,925
4,849
4,342
14,711
13,529
Service charges on deposit accounts
1,872
1,766
1,754
5,434
5,140
Card services income
2,921
3,278
2,860
9,138
8,629
Other income
2,299
2,802
990
7,321
4,534
Net gain (loss) on securities
transactions
85
(6
)
(62,967
)
65
(70,019
)
Total Noninterest Income
23,385
21,776
(41,624
)
67,298
(8,609
)
NONINTEREST EXPENSE
Salaries and wages
25,664
24,919
23,811
75,280
73,660
Other employee benefits
6,276
6,545
7,319
19,232
20,707
Net occupancy expense of premises
3,065
3,139
3,108
9,761
9,734
Furniture and fixture expense
1,797
1,910
2,079
5,832
6,238
Amortization of intangible assets
86
80
83
242
250
Other operating expense
12,989
13,349
13,466
39,329
41,403
Total Noninterest Expenses
49,877
49,942
49,866
149,676
151,992
Income/(Loss) Before Income
Tax Expense/(Benefit)
24,527
20,615
(41,627
)
67,243
(6,024
)
Income Tax
Expense/(Benefit)
5,858
4,902
(8,304
)
15,958
(619
)
Net Income/(Loss) Attributable
to Noncontrolling Interests and Tompkins Financial
Corporation
18,669
15,713
(33,323
)
51,285
(5,405
)
Less: Net Income Attributable to
Noncontrolling Interests
31
31
31
93
93
Net Income/(Loss) Attributable
to Tompkins Financial Corporation
$
18,638
15,682
(33,354
)
51,192
(5,498
)
Basic Earnings (Loss) Per Share
$
1.31
$
1.10
$
(2.35
)
$
3.60
$
(0.39
)
Diluted Earnings (Loss) Per Share
$
1.30
$
1.10
$
(2.35
)
$
3.59
$
(0.39
)
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
September 30, 2024
June 30, 2024
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(QTD)
Interest
Yield/Rate
(QTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
13,189
$
168
5.07
%
$
11,707
$
184
6.33
%
Securities (1)
U.S. Government securities
1,664,611
9,740
2.33
%
1,717,975
10,067
2.36
%
State and municipal (2)
87,799
560
2.54
%
89,518
566
2.55
%
Other securities
3,282
60
7.27
%
3,260
59
7.32
%
Total securities
1,755,692
10,360
2.35
%
1,810,753
10,692
2.38
%
FHLBNY and FRB stock
38,534
888
9.17
%
37,681
820
8.76
%
Total loans and leases, net of unearned
income (2)(3)
5,830,899
78,040
5.32
%
5,687,548
73,839
5.22
%
Total interest-earning assets
7,638,314
89,456
4.66
%
7,547,689
85,535
4.56
%
Other assets
276,610
262,372
Total assets
$
7,914,924
$
7,810,061
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,509,116
$
16,635
1.89
%
$
3,498,746
$
15,754
1.81
%
Time deposits
1,016,949
10,076
3.94
%
987,348
9,530
3.88
%
Total interest-bearing deposits
4,526,065
26,711
2.35
%
4,486,094
25,284
2.27
%
Federal funds purchased & securities
sold under agreements to repurchase
42,449
11
0.10
%
40,298
11
0.11
%
Other borrowings
709,474
9,214
5.17
%
688,611
8,992
5.25
%
Total interest-bearing
liabilities
5,277,988
35,936
2.71
%
5,215,003
34,287
2.64
%
Noninterest bearing deposits
1,838,725
1,837,325
Accrued expenses and other liabilities
101,679
94,764
Total liabilities
7,218,392
7,147,092
Tompkins Financial Corporation
Shareholders’ equity
695,057
661,523
Noncontrolling interest
1,475
1,446
Total equity
696,532
662,969
Total liabilities and equity
$
7,914,924
$
7,810,061
Interest rate spread
1.95
%
1.91
%
Net interest income (TE)/margin on earning
assets
53,520
2.79
%
51,248
2.73
%
Tax Equivalent Adjustment
(327
)
(295
)
Net interest income
$
53,193
$
50,953
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Quarter Ended
Quarter Ended
September 30, 2024
September 30, 2023
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(QTD)
Interest
Yield/Rate
(QTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
13,189
$
168
5.07
%
$
11,585
$
125
4.29
%
Securities (1)
U.S. Government securities
1,664,611
9,740
2.33
%
1,890,659
7,294
1.53
%
State and municipal (2)
87,799
560
2.54
%
90,212
576
2.53
%
Other securities
3,282
60
7.27
%
3,272
59
7.18
%
Total securities
1,755,692
10,360
2.35
%
1,984,143
7,929
1.59
%
FHLBNY and FRB stock
38,534
888
9.17
%
24,511
490
7.94
%
Total loans and leases, net of unearned
income (2)(3)
5,830,899
78,040
5.32
%
5,385,195
67,199
4.95
%
Total interest-earning assets
7,638,314
89,456
4.66
%
7,405,434
75,743
4.06
%
Other assets
276,610
224,442
Total assets
$
7,914,924
$
7,629,876
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,509,116
$
16,635
1.89
%
$
3,615,395
$
12,674
1.39
%
Time deposits
1,016,949
10,076
3.94
%
826,082
6,832
3.28
%
Total interest-bearing deposits
4,526,065
26,711
2.35
%
4,441,477
19,506
1.74
%
Federal funds purchased & securities
sold under agreements to repurchase
42,449
11
0.10
%
57,624
15
0.10
%
Other borrowings
709,474
9,214
5.17
%
403,829
4,931
4.84
%
Total interest-bearing
liabilities
5,277,988
35,936
2.71
%
4,902,930
24,452
1.98
%
Noninterest bearing deposits
1,838,725
1,990,320
Accrued expenses and other liabilities
101,679
101,646
Total liabilities
7,218,392
6,994,896
Tompkins Financial Corporation
Shareholders’ equity
695,057
633,494
Noncontrolling interest
1,475
1,487
Total equity
696,532
634,980
Total liabilities and equity
$
7,914,924
$
7,629,876
Interest rate spread
1.95
%
2.08
%
Net interest income (TE)/margin on earning
assets
53,520
2.79
%
51,291
2.75
%
Tax Equivalent Adjustment
(327
)
(278
)
Net interest income
$
53,193
$
51,013
Average Consolidated Statements of
Condition and Net Interest Analysis (Unaudited)
Year to Date Period
Ended
Year to Date Period
Ended
September 30, 2024
September 30, 2023
Average
Average
Balance
Average
Balance
Average
(Dollar amounts in thousands)
(YTD)
Interest
Yield/Rate
(YTD)
Interest
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from
banks
$
12,369
$
506
5.46
%
$
12,630
$
447
4.73
%
Securities (1)
U.S. Government securities
1,712,727
30,109
2.35
%
1,965,039
22,022
1.50
%
State and municipal (2)
89,063
1,697
2.55
%
91,858
1,764
2.57
%
Other securities
3,273
179
7.31
%
3,281
169
6.87
%
Total securities
1,805,063
31,985
2.37
%
2,060,178
23,955
1.55
%
FHLBNY and FRB stock
36,948
2,309
8.35
%
21,519
1,113
6.93
%
Total loans and leases, net of unearned
income (2)(3)
5,713,780
223,656
5.23
%
5,314,221
191,946
4.83
%
Total interest-earning assets
7,568,160
258,456
4.56
%
7,408,548
217,461
3.92
%
Other assets
274,143
224,594
Total assets
$
7,842,303
$
7,633,142
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, &
money market
$
3,517,993
$
47,424
1.80
%
$
3,715,931
$
31,905
1.15
%
Time deposits
997,800
29,005
3.88
%
749,198
15,428
2.75
%
Total interest-bearing deposits
4,515,793
76,429
2.26
%
4,465,129
47,333
1.42
%
Federal funds purchased & securities
sold under agreements to repurchase
43,837
35
0.11
%
57,077
44
0.10
%
Other borrowings
673,809
26,267
5.21
%
351,600
12,041
4.58
%
Total interest-bearing
liabilities
5,233,439
102,731
2.62
%
4,873,806
59,418
1.63
%
Noninterest bearing deposits
1,835,776
2,019,917
Accrued expenses and other liabilities
97,593
100,491
Total liabilities
7,166,808
6,994,214
Tompkins Financial Corporation
Shareholders’ equity
674,048
637,472
Noncontrolling interest
1,447
1,456
Total equity
675,495
638,928
Total liabilities and equity
$
7,842,303
$
7,633,142
Interest rate spread
1.94
%
2.29
%
Net interest income (TE)/margin on earning
assets
155,725
2.75
%
158,043
2.85
%
Tax Equivalent Adjustment
(904
)
(888
)
Net interest income
$
154,821
$
157,155
Tompkins Financial Corporation - Summary Financial Data
(Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Sep-24
Jun-24
Mar-24
Dec-23
Sep-23
Dec-23
Securities
$
1,622,526
$
1,630,654
$
1,679,542
$
1,729,838
$
1,701,636
$
1,729,838
Total Loans
5,881,261
5,761,864
5,640,524
5,605,935
5,434,860
5,605,935
Allowance for credit losses
55,384
53,059
51,704
51,584
49,336
51,584
Total assets
8,006,427
7,869,522
7,778,034
7,819,749
7,691,162
7,819,749
Total deposits
6,577,896
6,285,896
6,449,616
6,399,847
6,623,436
6,399,847
Federal funds purchased and securities
sold under agreements to repurchase
67,506
35,989
43,681
50,996
56,120
50,996
Other borrowings
539,327
773,627
522,600
602,100
296,800
602,100
Total common equity
719,855
674,630
667,906
668,522
610,851
668,522
Total equity
721,348
676,093
669,338
669,934
612,356
669,934
Average Balance Sheet
Average earning assets
$
7,638,314
$
7,547,689
$
7,517,705
$
7,407,976
$
7,405,434
$
7,408,404
Average assets
7,914,924
7,810,061
7,801,125
7,666,982
7,629,876
7,641,672
Average interest-bearing liabilities
5,277,988
5,215,003
5,206,836
5,020,544
4,902,930
4,910,792
Average equity
696,532
662,969
666,752
622,280
634,980
634,732
Share data
Weighted average shares outstanding
(basic)
14,215,607
14,214,574
14,211,910
14,194,503
14,185,763
14,254,661
Weighted average shares outstanding
(diluted)
14,283,255
14,239,626
14,238,357
14,246,024
14,224,748
14,301,221
Period-end shares outstanding
14,394,255
14,395,204
14,405,019
14,405,920
14,350,177
14,405,920
Common equity book value per share
$
50.01
$
46.86
$
46.37
$
46.41
$
42.57
$
46.41
Tangible book value per share
(Non-GAAP)**
$
43.50
$
40.35
$
39.85
$
39.88
$
36.01
$
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
$
53,193
$
50,953
$
50,675
$
52,359
$
51,013
$
209,514
Provision for credit loss expense (5)
2,174
2,172
854
1,761
1,150
4,339
Noninterest income
23,385
21,776
22,137
18,850
(41,624
)
10,241
Noninterest expense (5)
49,877
49,942
49,857
51,300
49,866
203,292
Income tax expense/(benefit)
5,858
4,902
5,198
3,114
(8,304
)
2,495
Net income/(loss) attributable to Tompkins
Financial Corporation
18,638
15,682
16,872
15,003
(33,354
)
9,505
Noncontrolling interests
31
31
31
31
31
124
Basic earnings (loss) per share (4)
1.31
1.10
1.19
1.06
(2.35
)
0.66
Diluted earnings (loss) per share (4)
1.30
1.10
1.18
1.05
(2.35
)
0.66
Nonperforming Assets
Nonaccrual loans and leases
$
62,381
$
62,253
$
62,544
$
62,165
$
31,381
$
62,165
Loans and leases 90 days past due and
accruing
193
215
151
101
52
101
Total nonperforming loans and leases
62,574
62,468
62,695
62,266
31,433
62,266
OREO
81
80
0
131
0
131
Total nonperforming assets
$
62,655
$
62,548
$
62,695
$
62,397
$
31,433
$
62,397
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease
portfolio
Sep-24
Jun-24
Mar-24
Dec-23
Sep-23
Dec-23
Loans and leases 30-89 days past due and
accruing
$
7,031
$
5,286
$
8,015
$
4,210
$
40,893
$
4,210
Loans and leases 90 days past due and
accruing
193
215
151
101
52
101
Total loans and leases past due and
accruing
7,224
5,501
8,166
4,311
40,945
4,311
Allowance for Credit Losses
Balance at beginning of period
$
53,059
$
51,704
$
51,584
$
49,336
$
48,545
$
45,934
Impact of adopting ASC 326
0
0
0
0
0
64
Provision for credit losses
3,237
1,864
348
2,658
968
$
4,865
Net loan and lease charge-offs
(recoveries)
912
509
228
410
177
$
(721
)
Allowance for credit losses at end of
period
$
55,384
$
53,059
$
51,704
$
51,584
$
49,336
$
51,584
Allowance for Credit Losses -
Off-Balance Sheet Exposure
Balance at beginning of period
$
3,084
$
2,776
$
2,270
$
3,167
$
2,985
$
2,796
Provision (credit) for credit losses
(1,063
)
308
506
(897
)
182
$
(526
)
Allowance for credit losses at end of
period
$
2,021
$
3,084
$
2,776
$
2,270
$
3,167
$
2,270
Loan Classification - Total
Portfolio
Special Mention
$
58,758
$
48,712
$
46,302
$
50,368
$
65,993
$
50,368
Substandard
67,261
67,509
72,412
72,717
56,947
72,717
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans
and leases
1.06
%
1.08
%
1.11
%
1.11
%
0.58
%
1.11
%
Nonperforming assets/total assets
0.78
%
0.79
%
0.81
%
0.80
%
0.41
%
0.80
%
Allowance for credit losses/total loans
and leases
0.94
%
0.92
%
0.92
%
0.92
%
0.91
%
0.92
%
Allowance/nonperforming loans and
leases
88.51
%
84.94
%
82.47
%
82.84
%
156.96
%
82.84
%
Net loan and lease losses (recoveries)
annualized/total average loans and leases
0.06
%
0.04
%
0.02
%
0.03
%
0.01
%
(0.01
)%
Capital Adequacy
Tier 1 Capital (to average assets)
9.19
%
9.15
%
9.08
%
9.08
%
9.01
%
9.08
%
Total Capital (to risk-weighted
assets)
13.21
%
13.26
%
13.43
%
13.36
%
13.46
%
13.36
%
Profitability (period-end)
Return on average assets *
0.94
%
0.81
%
0.87
%
0.78
%
(1.73
)%
0.12
%
Return on average equity *
10.65
%
9.51
%
10.18
%
9.56
%
(20.84
)%
1.50
%
Net interest margin (TE) *
2.79
%
2.73
%
2.73
%
2.82
%
2.75
%
2.84
%
Average yield on interest-earning
assets*
4.66
%
4.56
%
4.47
%
4.34
%
4.06
%
4.03
%
Average cost of deposits*
1.67
%
1.61
%
1.54
%
1.43
%
1.20
%
1.09
%
Average cost of funds*
2.01
%
1.96
%
1.86
%
1.62
%
1.41
%
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 principles (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
Sep-24
Jun-24
Mar-24
Dec-23
Sep-23
Dec-23
Common equity book value per share
(GAAP)
$
50.01
$
46.86
$
46.37
$
46.41
$
42.57
$
46.41
Total common equity
$
719,855
$
674,630
$
667,906
$
668,522
$
610,851
$
668,522
Less: Goodwill and intangibles
93,760
93,847
93,926
94,003
94,086
94,003
Tangible common equity (Non-GAAP)
626,095
580,783
573,980
574,519
516,765
574,519
Ending shares outstanding
14,394,255
14,395,204
14,405,019
14,405,920
14,350,177
14,405,920
Tangible book value per share
(Non-GAAP)
$
43.50
$
40.35
$
39.85
$
39.88
$
36.01
$
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241025366968/en/
Stephen S. Romaine, President & CEO Matthew Tomazin,
Executive VP, CFO & Treasurer Tompkins Financial Corporation
(888) 503-5753
Tompkins Financial (AMEX:TMP)
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