EX-99.1 2 ex99-1.htm PRESS RELEASE

 

TOMPKINS FINANCIAL CORPORATION 8-K

 

EXHIBIT 99.1

 

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

 

For Immediate Release

Friday, April 26, 2019

 

Tompkins Financial Corporation Reports Record First Quarter Earnings

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported net income of $21.0 million for the first quarter of 2019, an increase of 3.0% from the $20.4 million reported for the same period in 2018. Diluted earnings per share were $1.37 for the first quarter of 2019, a 3.0% increase from $1.33 reported for the first quarter of 2018.

President and CEO, Stephen S. Romaine said “We are excited to start 2019 with the best first quarter in our Company's history. Growth in loans and deposits, higher fee income, and improved credit quality all contributed to the improved results in 2019. During the quarter we celebrated the grand opening of our office in Amherst, NY. This is our first office in the Buffalo market and provides banking, wealth management and insurance services." 

Selected highlights for first quarter:

●Diluted earnings per share of $1.37 represent the best first quarter in Company history, and are up 3.0% over the same period in 2018
●Total loans of $4.8 billion were up 1.8% over the same period in 2018
●Total deposits of $5.0 billion reflect an increase of 1.2% over the same period last year
●Total nonperforming loans were down 8.9% compared to the same period last year, and down 13.6% from December 31, 2018
●Tangible book value per share is up 14.4% from the first quarter of 2018 and reflects the fifth consecutive quarterly increase

 

   
 

NET INTEREST INCOME

The net interest margin was 3.34% for the first quarter of 2019, flat compared to the fourth quarter of 2018, and is down from 3.42% for the first quarter of 2018. The net interest margin in the prior year benefited from reduced interest expense associated with accelerated accretion of purchase accounting related to certain acquired deposits.

Net interest income of $51.9 million for the first quarter of 2019 decreased by 1.5% compared to the same period in 2018, and was down 2.5% compared to the fourth quarter of 2018. The decrease in net interest income over prior year was mainly due to higher cost on interest-bearing deposits, which was largely driven by the higher market interest rate environment. 

NONINTEREST INCOME

Noninterest income represented 27.2% of total revenues in the first quarter of 2019, compared to 25.3% in the same period in 2018, and 23.9% for the most recent prior quarter. Noninterest income of $19.4 million was up 8.8% compared to the same period last year, and down 2.3% compared to the fourth quarter of 2018. Insurance revenue was the largest contributor to noninterest income and reflected an increase of 8.8% over the same period last year. Noninterest income also included a one-time incentive payment of $500,000 (pre-tax) related to our card services business in the first quarter of 2019. 

NONINTEREST EXPENSE

Noninterest expense was $44.2 million for the first quarter of 2019, which was up 1.1% from the same period in 2018, and down 6.4% compared to the fourth quarter of 2018. The increase in noninterest expense from the same period last year was mainly related to higher salaries and wages in the first quarter of 2019. The decline from the most recent prior quarter was primarily due to higher cost in the fourth quarter of 2018 for professional fees, primarily related to investments in strengthening the Company’s compliance and information security infrastructure. 

INCOME TAX EXPENSE

The Company’s effective tax rate was 21.0% in the first quarter of 2019, compared to 22.0% for the same period in 2018.  

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ASSET QUALITY

Asset quality trends remained strong in the first quarter of 2019. Nonperforming assets represented 0.36% of total assets at March 31, 2019, down from 0.42% at December 31, 2018. Nonperforming asset levels continue to be below the most recent Federal Reserve Board Peer Group Average1 of 0.59%.

Provision for loan and lease losses was $445,000 for the first quarter of 2019, down from $567,000 reported for the first quarter of 2018, and $1.6 million reported for the fourth quarter of 2018. Net charge-offs for the first quarter of 2019 were $3.5 million compared to $127,000 reported in the first quarter of 2018. The first quarter of 2019 included a write-down on one large credit in the commercial real estate portfolio, the credit did have an impairment reserve at December 31, 2018.

The Company’s allowance for originated loan and lease losses totaled $40.2 million at March 31, 2019, and represented 0.89% of total originated loans and leases at March 31, 2019, compared to 0.91% at March 31, 2018, and 0.95% at December 31, 2018. The total allowance coverage of nonperforming loans and leases increased to 175.50% at March 31, 2019, up from 159.34% at March 31, 2018, and 163.25% at December 31, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 8.24% at March 31, 2019, improved from the 7.81% reported for the most recent prior quarter ended December 31, 2018, and 7.29% at March 31, 2018. 

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ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a 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 Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST 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 of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.

 

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TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share and per share data)  As of   As of 
ASSETS  03/31/2019   12/31/2018 
         
Cash and noninterest bearing balances due from banks  $68,531   $78,524 
Interest bearing balances due from banks   2,043    1,865 
Cash and Cash Equivalents   70,574    80,389 
           
Available-for-sale securities, at fair value (amortized cost of $1,359,102 at March 31, 2019 and $1,363,902 at December 31, 2018)   1,343,610    1,332,658 
Held-to-maturity securities, at amortized cost (fair value of $140,422 at March 31, 2019 and $139,377 at December 31, 2018)   139,642    140,579 
Equity securities, at fair value (amortized cost $1,000 at March 31, 2019 and $1,000 at December 31, 2018)   899    887 
Originated loans and leases, net of unearned income and deferred costs and fees   4,532,803    4,568,741 
Acquired loans   256,897    265,198 
Less:  Allowance for loan and lease losses   40,328    43,410 
Net Loans and Leases   4,749,372    4,790,529 
           
Federal Home Loan Bank and other stock   45,088    52,262 
Bank premises and equipment, net   96,864    97,202 
Corporate owned life insurance   82,571    81,928 
Goodwill   92,283    92,283 
Other intangible assets, net   7,266    7,628 
Accrued interest and other assets   110,550    82,091 
Total Assets  $6,738,719   $6,758,436 
LIABILITIES          
Deposits:          
Interest bearing:          
  Checking, savings and money market   2,977,593    2,853,190 
  Time   661,712    637,295 
Noninterest bearing   1,350,620    1,398,474 
Total Deposits   4,989,925    4,888,959 
           
Federal funds purchased and securities sold under agreements to repurchase   66,918    81,842 
Other borrowings   923,427    1,076,075 
Trust preferred debentures   16,906    16,863 
Other liabilities   94,276    73,826 
Total Liabilities  $6,091,452   $6,137,565 
EQUITY          
Tompkins Financial Corporation shareholders’ equity:          
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,349,988 at March 31, 2019; and 15,348,287 at December 31, 2018   1,535    1,535 
Additional paid-in capital   367,245    366,595 
Retained earnings   332,779    319,396 
Accumulated other comprehensive loss   (50,950)   (63,165)
Treasury stock, at cost – 117,757 shares at March 31, 2019, and 122,227 shares at December 31, 2018   (4,786)   (4,902)
Total Tompkins Financial Corporation Shareholders’ Equity   645,823    619,459 
           
Noncontrolling interests   1,444    1,412 
Total Equity  $647,267   $620,871 
Total Liabilities and Equity  $6,738,719   $6,758,436 

 

 

 6 
 

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except per share data) (Unaudited)  Three Months Ended 
    03/31/2019    03/31/2018 
INTEREST AND DIVIDEND INCOME          
Loans  $55,324   $50,894 
Due from banks   10    7 
Available-for-sale securities   7,858    7,644 
Held-to-maturity securities   858    858 
Federal Home Loan Bank and other stock   878    737 
Total Interest and Dividend Income   64,928    60,140 
INTEREST EXPENSE          
Time certificates of deposits of $250,000 or more   586    (14)
Other deposits   6,011    2,783 
Federal funds purchased and securities sold under agreements to repurchase   44    46 
Trust preferred debentures   329    279 
Other borrowings   6,044    4,359 
Total Interest Expense   13,014    7,453 
Net Interest Income   51,914    52,687 
Less:  Provision for loan and lease losses   445    567 
Net Interest Income After Provision for Loan and Lease Losses   51,469    52,120 
NONINTEREST INCOME          
Insurance commissions and fees   8,045    7,394 
Investment services income   4,084    4,246 
Service charges on deposit accounts   1,998    2,132 
Card services income   2,790    2,146 
Other income   2,478    1,788 
Net gain on securities transactions   12    124 
Total Noninterest Income   19,407    17,830 
NONINTEREST EXPENSE          
Salaries and wages   21,101    20,998 
Other employee benefits   5,611    5,376 
Net occupancy expense of premises   3,601    3,646 
Furniture and fixture expense   1,979    1,975 
FDIC insurance   582    667 
Amortization of intangible assets   412    451 
Other operating expense   10,923    10,608 
Total Noninterest Expenses   44,209    43,721 
Income Before Income Tax Expense   26,667    26,229 
Income Tax Expense   5,595    5,761 
           
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation   21,072    20,468 
Less:  Net Income Attributable to Noncontrolling Interests   32    32 
Net Income Attributable to Tompkins Financial Corporation  $21,040   $20,436 
Basic Earnings Per Share  $1.37   $1.34 
Diluted Earnings Per Share  $1.37   $1.33 

 

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

                         
   YTD Period Ended
March 31, 2019		   YTD Period Ended
March 31, 2018		 
(Dollar amounts in thousands)   Average
Balance
(YTD)		   Interest   Average
Yield/ Rate		   Average
Balance
(YTD)		   Interest   Average
Yield/ Rate		 
ASSETS                        
Interest-earning assets                              
Interest-bearing balances due from banks  $2,334   $10    1.74%  $2,565   $7    1.11%
Securities (4)                              
U.S. Government securities   1,409,305    8,172    2.35%   1,454,229    7,954    2.22%
State and municipal (5)   94,609    626    2.68%   99,766    643    2.61%
Other securities (5)   3,415    41    4.87%   3,571    35    3.97%
Total securities   1,507,329    8,839    2.38%   1,557,566    8,632    2.25%
FHLBNY and FRB stock   48,055    878    7.41%   49,509    737    6.04%
                               
Total loans and leases, net of unearned income (5)(6)   4,792,607    55,614    4.71%   4,688,087    51,229    4.43%
Total interest-earning assets   6,350,325    65,341    4.17%   6,297,727    60,605    3.90%
                               
Other assets   393,035              355,036           
                               
Total assets  $6,743,360             $6,652,763           
                               
LIABILITIES & EQUITY                              
Deposits                              
Interest-bearing deposits                              
Interest bearing checking, savings & money market  $2,940,416    4,470    0.62%  $2,796,197    1,646    0.24%
Time deposits   645,144    2,127    1.34%   717,617    1,123    0.63%
Total interest-bearing deposits   3,585,560    6,597    0.75%   3,513,814    2,769    0.32%
                               
                               
Federal funds purchased & securities sold under   agreements to repurchase   72,664    44    0.25%   75,167    46    0.25%
Other borrowings   993,773    6,044    2.47%   1,053,311    4,359    1.68%
Trust preferred debentures   16,878    329    7.90%   16,706    279    6.77%
Total interest-bearing liabilities   4,668,875    13,014    1.13%   4,658,998    7,453    0.65%
                               
Non-interest bearing deposits   1,338,623              1,351,307           
Accrued expenses and other liabilities   105,131              67,495           
Total liabilities   6,112,629              6,077,800           
                               
Tompkins Financial Corporation Shareholders’ equity   629,305              573,536           
Noncontrolling interest   1,426              1,427           
Total equity   630,731              574,963           
                               
Total liabilities and equity  $6,743,360             $6,652,763           
Interest rate spread             3.04%             3.25%
Net interest income/margin on earning assets        52,327    3.34%        53,152    3.42%
                               
Tax equivalent adjustments        (413)             (465)     
                               
Net interest income per consolidated financial statements       $51,914             $52,687      

 

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Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)                        
  Quarter-Ended Year-Ended
Period End Balance Sheet   Mar-19   Dec-18   Sep-18   Jun-18   Mar-18   Dec-18
Securities $ 1,484,151   $ 1,474,124   $ 1,452,788   $ 1,483,991   $ 1,510,795   $ 1,474,124  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   4,532,803     4,568,741     4,531,241     4,507,006     4,408,081     4,568,741  
Acquired loans and leases (3)   256,897     265,198     271,468     284,187     296,765     265,198  
Allowance for  loan and lease losses   40,328     43,410     41,358     41,225     40,211     43,410  
Total assets   6,738,719     6,758,436     6,746,960     6,745,800     6,648,128     6,758,436  
Total deposits   4,989,925     4,888,959     5,025,082     4,792,229     4,929,903     4,888,959  
Federal funds purchased and securities sold under agreements to repurchase   66,918     81,842     52,875     52,042     69,131     81,842  
Other borrowings   923,427     1,076,075     988,515     1,229,956     995,074     1,076,075  
Trust preferred debentures   16,906     16,863     16,820     16,777     16,734     16,863  
Total common equity   645,823     619,459     597,636     589,173     577,967     619,459  
Total equity   647,267     620,871     599,144     590,649     579,411     620,871  
                         
Average Balance Sheet                        
Average earning assets $ 6,350,325   $ 6,364,113   $ 6,356,781   $ 6,348,562   $ 6,297,727   $ 6,342,019  
Average assets   6,743,360     6,710,944     6,716,452     6,689,649     6,652,763     6,692,678  
Average interest-bearing liabilities   4,668,875     4,606,536     4,644,533     4,709,122     4,658,998     4,654,625  
Average equity   630,731     606,238     597,211     584,951     574,963     590,944  
                         
Share data                        
Weighted average shares outstanding (basic) 15,060,175   15,057,673   15,047,405   15,038,061   15,013,478   15,039,229  
Weighted average shares outstanding (diluted) 15,136,523   15,135,750   15,144,491   15,135,970   15,112,518   15,132,257  
Period-end shares outstanding 15,314,078   15,312,377   15,277,915   15,278,430   15,285,335   15,312,377  
Common equity book value per share $ 42.17   $ 40.45   $ 39.12   $ 38.56   $ 37.81   $ 40.45  
Tangible book value per share (Non-GAAP) $ 35.73   $ 33.98   $ 32.60   $ 32.02   $ 31.24   $ 33.98  
                         
Income Statement                        
Net interest income $ 51,914   $ 53,236   $ 53,163   $ 52,714   $ 52,687   $ 211,800  
Provision for loan/lease losses   445     2,058     272     1,045     567     3,942  
Noninterest income   19,407     19,858     18,603     21,158     17,830     77,449  
Noninterest expense   44,209     47,228     45,133     44,985     43,721     181,067  
Income tax expense   5,595     4,866     5,427     5,751     5,761     21,805  
Net income attributable to Tompkins Financial Corporation   21,040     18,911     20,902     22,059     20,436     82,308  
Noncontrolling interests   32     31     32     32     32     127  
Basic earnings per share (8) $ 1.37   $ 1.24   $ 1.37   $ 1.44   $ 1.34   $ 5.39  
Diluted earnings per share (8) $ 1.37   $ 1.23   $ 1.36   $ 1.43   $ 1.33   $ 5.35  
                         

 

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Nonperforming Assets                        
Originated nonaccrual loans and leases $ 15,165   $ 19,340   $ 17,518   $ 19,082   $ 18,429   $ 19,340  
Acquired nonaccrual loans and leases   2,579     2,856     2,659     2,673     3,352     2,856  
Originated loans and leases 90 days past due and accruing   0     0     0     0     0     0  
Troubled debt restructurings not included above   5,234     4,395     4,295     4,324     3,455     4,395  
Total nonperforming loans and leases   22,978     26,591     24,472     26,079     25,236     26,591  
OREO   1,595     1,595     1,870     2,233     2,047     1,595  
Total nonperforming assets $ 24,573   $ 28,186   $ 26,342   $ 28,312   $ 27,283   $ 28,186  

 

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

 

    Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio   Mar-19   Dec-18   Sep-18   Jun-18   Mar-18   Dec-18
Loans and leases 30-89 days past due and accruing (2) $ 4,193   $ 7,838   $ 6,454   $ 5,875   $ 6,513   $ 7,838  
Loans and leases 90 days past due and accruing (2)   0     0     0     0     0     0  
Total originated loans and leases past due and accruing (2)   4,193     7,838     6,454     5,875     6,513     7,838  
 
Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7) $ 474   $ 67   $ 1,109   $ 1,108   $ 823   $ 67  
Loans 90 days or more past due   1,218     1,316     1,420     1,110     1,077     1,316  
Total acquired loans and leases past due and accruing   1,692     1,383     2,529     2,218     1,900     1,383  
Total loans and leases past due and accruing $ 5,885   $ 9,221   $ 8,983   $ 8,093   $ 8,413   $ 9,221  
 
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 43,321   $ 41,289   $ 41,111   $ 40,107   $ 39,686   $ 39,686  
Provision for loan and lease losses   480     2,046     208     1,035     608     3,897  
Net loan and lease (recoveries) charge-offs   3,556     14     30     31     187     262  
Allowance for loan and lease losses (originated                        
loan portfolio) - balance at end of period $ 40,245   $ 43,321   $ 41,289   $ 41,111   $ 40,107   $ 43,321  
 
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 89   $ 69   $ 114   $ 104   $ 85   $ 85  
Provision (credit) for loan and lease losses   (35 )   12     64     10     (41 )   45  
Net loan and lease (recoveries) charge-offs   (29 )   (8 )   109     0     (60 )   41  
Allowance for loan and lease losses (acquired                        
loan portfolio) - balance at end of period   83     89     69     114     104     89  
                         
Total allowance for loan and lease losses $ 40,328   $ 43,410   $ 41,358   $ 41,225   $ 40,211   $ 43,410  
                         
Loan Classification - Originated Portfolio                        
Special Mention $ 33,689   $ 28,074   $ 34,245   $ 44,068   $ 34,546   $ 28,074  
Substandard   35,895     43,963     49,597     41,572     35,746     43,963  
Loan Classification - Acquired Portfolio                        
Special Mention   270     452     465     469     476     452  
Substandard   2,830     2,914     3,041     3,180     3,468     2,914  
Loan Classifications - Total Portfolio                        
Special Mention   33,959     28,526     34,710     44,537     35,022     28,526  
Substandard   38,725     46,877     52,638     44,752     39,214     46,877  

 

 

 10 
 

 

Ratio Analysis

Credit Quality                        
Nonperforming loans and leases/total loans and leases (7)   0.48 %   0.55 %   0.51 %   0.54 %   0.54 %   0.55 %
Nonperforming assets/total assets   0.36 %   0.42 %   0.39 %   0.42 %   0.41 %   0.42 %
Allowance for originated loan and lease losses/total originated loans and leases   0.89 %   0.95 %   0.91 %   0.91 %   0.91 %   0.95 %
Allowance/nonperforming loans and leases   175.51 %   163.25 %   169.00 %   158.11 %   159.34 %   163.25 %
Net loan and lease losses annualized/total average loans and leases   0.30 %   0.00 %   0.01 %   0.00 %   0.01 %   0.01 %

 

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

 

    Year-Ended
Capital Adequacy (period-end)   Mar-19   Dec-18   Sep-18   Jun-18   Mar-18   Dec-18
Tangible common equity/tangible assets   8.24 %   7.81 %   7.49 %   7.36 %   7.29 %   7.81 %
                                     
Profitability                        
Return on average assets *   1.27 %   1.12 %   1.23 %   1.32 %   1.25 %   1.23 %
Return on average equity *   13.53 %   12.38 %   13.89 %   15.13 %   14.41 %   13.93 %
Net interest margin (TE) *   3.34 %   3.34 %   3.35 %   3.36 %   3.42 %   3.37 %
* Quarterly ratios have been annualized                        

 

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 accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

 

Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
    Quarter-Ended Year-Ended
    Mar-19   Dec-18   Sep-18   Jun-18   Mar-18   Dec-18
Net income available to common shareholders $ 21,040   $ 18,911   $ 20,902   $ 22,059   $ 20,436   $ 82,308  
Income attributable to unvested stock-based compensation awards   349     291     318     359     347     1,315  
Net earnings allocated to common shareholders   20,691     18,620     20,584     21,700     20,089     80,993  
Remeasurement of net deferred taxes   0     0     0     0     0     0  
Gain on sale of real estate, net of tax   0     0     0     2,227     0     2,227  
Write-down of impaired leases, net of tax   0     0     (388 )   (1,527 )   0     (1,915 )
Net income (Non-GAAP)   20,691     18,620     20,972     21,000     20,089     80,681  
Weighted average shares outstanding (diluted) 15,136,523   15,135,750   15,144,491   15,135,970   15,112,518   15,132,257  
Adjusted diluted earnings per share (Non-GAAP) $ 1.37   $ 1.23   $ 1.38   $ 1.39   $ 1.33   $ 5.33  
 

 

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Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity $ 645,823   $ 619,459   $ 597,636   $ 589,173   $ 577,967   $ 619,459  
Less:  Goodwill and intangibles (9)   98,694     99,106     99,543     99,983     100,436     99,106  
Tangible common equity   547,129     520,353     498,093     489,190     477,531     520,353  
Ending shares outstanding 15,314,078   15,312,377   15,277,915   15,278,430   15,285,335   15,312,377  
Tangible book value per share (Non-GAAP) $ 35.73   $ 33.98   $ 32.60   $ 32.02   $ 31.24   $ 33.98  

 

(1)

Federal Reserve peer ratio as of December 31, 2018, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.

(2)

“Originated” equals loans and leases not included by definition in “acquired loans”.

(3)

“Acquired Loans and Leases” equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. 

(4)

Average balances and yields on available-for-sale securities are based on historical amortized cost.

(5)

Interest income includes the tax effects of taxable-equivalent basis. 

(6)

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, 2018. 

(7)

Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation’s estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows. 

(8)

Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares 

(9)

“Goodwill and intangibles” equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

 

 

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