EX-99.1 2 ex99-1.htm PRESS RELEASE OF TOMPKINS FINANCIAL CORPORATION

 

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, July 19, 2019

 

Tompkins Financial Corporation Reports Second Quarter Earnings

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

Tompkins Financial Corporation reported net income of $19.4 million for the second quarter of 2019, compared to the $22.1 million reported for the same period in 2018. Year-to-date net income was $40.4 million, a decrease of $2.1 million, or 4.9% from the same period in 2018.

Diluted earnings per share were $1.27 for the second quarter of 2019, compared to $1.43 reported in the second quarter of 2018. For the year-to-date period ended June 30, 2019, diluted earnings per share were $2.63, down 4.7% over the same period in 2018.

President and CEO, Stephen S. Romaine said “Though overall performance remains very good, we did see a decline in earnings for the quarter and year-to-date periods. The decline from recent prior periods was largely driven by the challenging interest rate environment that has resulted in funding costs increasing at a faster pace than asset yields. We are fortunate that our business model includes meaningful fee income contributions from business lines that are less impacted by the interest rate environment. Additionally, we have a number of continuous improvement initiatives underway that we expect will have a positive impact on performance later in 2019 and in future years.”

SELECTED HIGHLIGHTS FOR THE SECOND QUARTER AND YEAR-TO-DATE PERIODS:

•Total loans of $4.9 billion were up 1.4% over the same period in 2018
•Total deposits of $5.0 billion reflect an increase of 4.1% over the same period last year
•Total nonperforming loans were down $2.3 million or 8.8% compared to the same period last year, and down $2.8 million or 10.5% from December 31, 2018
•Tangible book value per share is up $4.75 or 14.8% from the second quarter of 2018 and reflects the sixth consecutive quarterly increase

NET INTEREST INCOME

Net interest income was $52.3 million for the second quarter of 2019, compared to $52.7 million reported for the second quarter of 2018. For the year-to-date period, net interest income was $104.2 million, a decrease of $1.2 million or 1.1% from the same six-month period in 2018.

Net interest income benefited from growth in average loans and higher yielding earning assets. Average loans were up $78.4 million, or 1.7% in the first six months of 2019, compared to the same six month period in 2018, while asset yields were up 26 basis points compared to the first six months of 2018. Average total deposits were up $101.3 million, or 2.1% in the first six months of 2019, versus the same period in 2018. Average noninterest deposits for the first six months of 2019 were in line with the same period in 2018. The average rate paid on interest bearing deposit products in the first six months of 2019 increased 42 basis points over the same period in 2018. The net interest margin for the second quarter of 2019 was 3.34%, compared to 3.36% reported for the same period in 2018, and unchanged compared to the prior quarter end. The decline in margin is largely due to the recent increases in market interest rates that have resulted in increased funding costs.

During the quarter, the Company sold $152.1 million in lower yielding securities and used the proceeds to pay down short term borrowings. Because the transaction was executed in June, it had little impact on net interest income during the quarter, but is expected to have a positive impact on net interest income during the remainder of 2019.

 
 

NONINTEREST INCOME

Noninterest income represented 26.7% of total revenues in the first six months of 2019, compared to 27.0% in the same period in 2018. The second quarter of 2018 included a gain on sale of two properties totaling $2.9 million. The sale of these properties was related to the completion of the new Company headquarters building in the second quarter of 2018. Fee income associated with insurance, wealth management, deposit services, and card services for the second quarter of 2019 were up a combined $323,000, or 2.0% over the same period in 2018.

NONINTEREST EXPENSE

Noninterest expense was $46.1 million for the second quarter of 2019, up $1.1 million, or 2.4%, over the second quarter of 2018. For the year-to-date period, noninterest expense was $90.3 million, up $1.6 million, or 1.8%, from the same period in 2018. The increase in noninterest expense for both the second quarter and year-to-date periods included normal annual increases in salaries and wages.

INCOME TAX EXPENSE

The Company's effective tax rate was 19.6% in the second quarter of 2019, compared to 20.7% for the same period in 2018.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2019. Nonperforming assets represented 0.39% of total assets at June 30, 2019, compared to 0.42% at December 31, 2018, and at June 30, 2018. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.60%.

Provision for loan and lease losses was $601,000 for the second quarter of 2019, compared to $1.0 million for the second quarter ended June 30, 2018. Net charge-offs for the second quarter of 2019 were $139,000 compared to $31,000 reported in the second quarter of 2018.

The Company’s allowance for originated loan and lease losses totaled $40.6 million at June 30, 2019, and represented 0.88% of total originated loans and leases at June 30, 2019, compared to 0.91% at June 30, 2018, and 0.89% for the most recent prior quarter. The total allowance represented 171.42% of total nonperforming loans and leases at June 30, 2019, compared to 163.25% at December 31, 2018, and 158.08% at June 30, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 8.50% at June 30, 2019, improved from the 8.24% reported for the most recent prior quarter ended March 31, 2019, and the 7.36% reported for June 30, 2018. During the quarter, the Company repurchased 155,093 shares at a total cost of $12.3 million.

 
 

 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.

 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share and per share data) As of As of
ASSETS 06/30/2019 12/31/2018
     
Cash and noninterest bearing balances due from banks $ 79,032   $ 78,524  
Interest bearing balances due from banks 1,981   1,865  
Cash and Cash Equivalents 81,013   80,389  
     
Available-for-sale securities, at fair value (amortized cost of $1,190,869 at June 30, 2019 and $1,363,902 at December 31, 2018) 1,189,246   1,332,658  
Held-to-maturity securities, at amortized cost (fair value of $143,548 June 30, 2019 and $139,377 at December 31, 2018) 140,561   140,579  
Equity securities, at fair value (amortized cost $1,000 at June 30, 2019 and $1,000 at December 31, 2018) 912   887  
Originated loans and leases, net of unearned income and deferred costs and fees 4,608,483   4,568,741  
Acquired loans 247,319   265,198  
Less:  Allowance for loan and lease losses 40,790   43,410  
Net Loans and Leases 4,815,012   4,790,529  
     
Federal Home Loan Bank and other stock 40,770   52,262  
Bank premises and equipment, net 96,053   97,202  
Corporate owned life insurance 82,092   81,928  
Goodwill 92,447   92,283  
Other intangible assets, net 7,092   7,628  
Accrued interest and other assets 109,192   82,091  
Total Assets $ 6,654,390   $ 6,758,436  
LIABILITIES    
Deposits:    
Interest bearing:    
  Checking, savings and money market 2,908,888   2,853,190  
  Time 684,962   637,295  
Noninterest bearing 1,395,047   1,398,474  
Total Deposits 4,988,897   4,888,959  
     
Federal funds purchased and securities sold under agreements to repurchase 63,978   81,842  
Other borrowings 824,562   1,076,075  
Trust preferred debentures 16,949   16,863  
Other liabilities 102,327   73,826  
Total Liabilities $ 5,996,713   $ 6,137,565  
EQUITY    
Tompkins Financial Corporation shareholders' equity:    
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,196,629 at June 30, 2019; and 15,348,287 at December 31, 2018 1,520   1,535  
Additional paid-in capital 355,284   366,595  
Retained earnings 344,513   319,396  
Accumulated other comprehensive loss (40,174 ) (63,165 )
Treasury stock, at cost – 119,784 shares at June 30, 2019, and 122,227 shares at December 31, 2018 (4,942 ) (4,902 )
Total Tompkins Financial Corporation Shareholders’ Equity 656,201   619,459  
     
Noncontrolling interests 1,476   1,412  
Total Equity $ 657,677   $ 620,871  
Total Liabilities and Equity $ 6,654,390   $ 6,758,436  
     
 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended
  06/30/2019 06/30/2018 06/30/2019 06/30/2018
INTEREST AND DIVIDEND INCOME        
Loans $ 56,740   $ 52,757   $ 112,064   $ 103,651  
Due from banks 10   7   20   13  
Available-for-sale securities 7,686   7,729   15,544   15,373  
Held-to-maturity securities 863   854   1,721   1,712  
Federal Home Loan Bank and other stock 794   796   1,672   1,534  
Total Interest and Dividend Income 66,093   62,143   131,021   122,283  
INTEREST EXPENSE        
Time certificates of deposits of $250,000 or more 774   540   1,360   525  
Other deposits 6,816   3,087   12,827   5,870  
Federal funds purchased and securities sold under agreements to repurchase 33   34   77   80  
Trust preferred debentures 327   306   656   586  
Other borrowings 5,825   5,462   11,869   9,821  
Total Interest Expense 13,775   9,429   26,789   16,882  
Net Interest Income 52,318   52,714   104,232   105,401  
Less:  Provision for loan and lease losses 601   1,045   1,046   1,612  
Net Interest Income After Provision for Loan and Lease Losses 51,717   51,669   103,186   103,789  
NONINTEREST INCOME        
Insurance commissions and fees 7,752   7,387   15,797   14,781  
Investment services income 3,907   4,022   7,991   8,268  
Service charges on deposit accounts 2,021   2,080   4,019   4,212  
Card services income 2,750   2,621   5,540   4,767  
Other income 1,806   4,898   4,284   6,686  
Net gain on securities transactions 284   150   296   274  
Total Noninterest Income 18,520   21,158   37,927   38,988  
NONINTEREST EXPENSE        
Salaries and wages 22,088   21,377   43,189   42,375  
Other employee benefits 5,662   5,183   11,273   10,559  
Net occupancy expense of premises 3,258   3,170   6,859   6,816  
Furniture and fixture expense 1,996   1,673   3,975   3,648  
FDIC insurance 522   704   1,104   1,371  
Amortization of intangible assets 418   443   830   894  
Other operating expense 12,126   12,435   23,049   23,043  
Total Noninterest Expenses 46,070   44,985   90,279   88,706  
Income Before Income Tax Expense 24,167   27,842   50,834   54,071  
Income Tax Expense 4,743   5,751   10,338   11,512  
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 19,424   22,091   40,496   42,559  
Less:  Net Income Attributable to Noncontrolling Interests 32   32   64   64  
Net Income Attributable to Tompkins Financial Corporation $ 19,392   $ 22,059   $ 40,432   $ 42,495  
Basic Earnings Per Share $ 1.27   $ 1.44   $ 2.64   $ 2.78  
Diluted Earnings Per Share $ 1.27   $ 1.43   $ 2.63   $ 2.76  
     

 

 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                             
      Quarter Ended YTD Period Ended YTD Period Ended
        June 30, 2019   June 30, 2019   June 30, 2018
        Average       Average       Average    
        Balance   Average   Balance   Average   Balance   Average
(Dollar amounts in thousands)   (QTD) Interest Yield/ Rate   (YTD) Interest Yield/ Rate   (YTD) Interest Yield/ Rate
ASSETS                        
Interest-earning assets                        
  Interest-bearing balances due from banks $ 2,131   $ 10   1.88 % $ 2,232 $ 20   1.81 % $ 1,922 $ 14   1.47 %
  Securities (4)                        
    U.S. Government securities   1,389,887   7,996 2.31 %   1,399,542 16,168 2.33 %   1,448,274 15,997 2.23 %
    State and municipal (5)   93,142   638 2.75 %   93,872 1,264 2.72 %   98,470 1,271 2.60 %
    Other securities (5)   3,416   40 4.70 %   3,416 81 4.78 %   3,558 74 4.19 %
    Total securities   1,486,445   8,674 2.34 %   1,496,830 17,513 2.36 %   1,550,302 17,342 2.26 %
  FHLBNY and FRB stock   46,650   794 6.83 %   47,349 1,672 7.12 %   51,750 1,534 5.98 %
                             
  Total loans and leases, net of unearned income (5)(6)   4,802,757   57,022 4.76 %   4,797,709 112,636 4.73 %   4,719,312 104,304 4.46 %
  Total interest-earning assets   6,337,983   66,500 4.21 %   6,344,120 131,841 4.19 %   6,323,286 123,194 3.93 %
                             
Other assets   404,426         398,762       348,024    
                             
  Total assets $ 6,742,409       $ 6,742,882     $ 6,671,310    
                             
LIABILITIES & EQUITY                        
Deposits                        
  Interest-bearing deposits                        
    Interest bearing checking, savings & money market $ 2,947,077   4,970 0.68 % $ 2,943,765 9,441 0.65 % $ 2,814,601 3,587 0.26 %
    Time deposits   671,197   2,620   1.57 %   658,242   4,746   1.45 %   689,404   2,808   0.82 %
    Total interest-bearing deposits   3,618,274   7,590 0.84 %   3,602,007 14,187 0.79 %   3,504,005 6,395 0.37 %
                             
Federal funds purchased & securities sold under                        
    agreements to repurchase   54,340   33 0.24 %   63,451 77 0.24 %   64,649 80 0.25 %
Other borrowings   948,714   5,825 2.46 %   971,119 11,869 2.46 %   1,098,818 9,821 1.80 %
Trust preferred debentures   16,921   327 7.75 %   16,900 656 7.83 %   16,728 586 7.06 %
  Total interest-bearing liabilities   4,638,249   13,775 1.19 %   4,653,477 26,789 1.16 %   4,684,200 16,882 0.73 %
                             
Non-interest bearing deposits   1,356,354         1,347,538       1,344,270    
Accrued expenses and other liabilities   97,727         101,409       62,856    
  Total liabilities   6,092,330         6,102,424       6,091,326    
                             
Tompkins Financial Corporation Shareholders’ equity   648,618         639,015       578,541    
Noncontrolling interest   1,461         1,443       1,443    
  Total equity   650,079         640,458       579,984    
                             
  Total liabilities and equity $ 6,742,409       $ 6,742,882     $ 6,671,310    
Interest rate spread       3.02 %       3.03 %       3.20 %
  Net interest income/margin on earning assets     52,725 3.34 %     105,052 3.34 %     106,312 3.39 %
                             
Tax equivalent adjustments     (407)       (820)       (911)  
                             
  Net interest income per consolidated financial statements     $ 52,318         $ 104,232         $ 105,401    
                                                     

 

 
 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)                        
  Quarter-Ended Year-Ended
Period End Balance Sheet   Jun-19   Mar-19   Dec-18   Sep-18   Jun-18   Dec-18
Securities $ 1,330,719   $ 1,484,151   $ 1,474,124   $ 1,452,788   $ 1,483,991   $ 1,474,124  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   4,608,483     4,532,803     4,568,741     4,531,241     4,507,006     4,568,741  
Acquired loans and leases (3)   247,319     256,897     265,198     271,468     284,187     265,198  
Allowance for  loan and lease losses   40,790     40,328     43,410     41,358     41,225     43,410  
Total assets   6,654,390     6,738,719     6,758,436     6,746,960     6,745,800     6,758,436  
Total deposits   4,988,897     4,989,925     4,888,959     5,025,082     4,792,229     4,888,959  
Federal funds purchased and securities sold under agreements to repurchase   63,978     66,918     81,842     52,875     52,042     81,842  
Other borrowings   824,562     923,427     1,076,075     988,515     1,229,956     1,076,075  
Trust preferred debentures   16,949     16,906     16,863     16,820     16,777     16,863  
Total common equity   656,201     645,823     619,459     597,636     589,173     619,459  
Total equity   657,677     647,267     620,871     599,144     590,649     620,871  

 

 

Average Balance Sheet                        
Average earning assets $ 6,337,983   $ 6,350,325   $ 6,364,113   $ 6,356,781   $ 6,348,562   $ 6,342,019  
Average assets   6,742,409     6,743,360     6,710,944     6,716,452     6,689,649     6,692,678  
Average interest-bearing liabilities   4,638,249     4,668,875     4,606,536     4,644,533     4,709,122     4,654,625  
Average equity   650,079     630,731     606,238     597,211     584,951     590,944  

 

Share data                        
Weighted average shares outstanding (basic) 15,019,710   15,060,175   15,057,673   15,047,405   15,038,061   15,039,229  
Weighted average shares outstanding (diluted) 15,085,945   15,136,523   15,135,750   15,144,491   15,135,970   15,132,257  
Period-end shares outstanding 15,160,719   15,314,078   15,312,377   15,277,915   15,278,430   15,312,377  
Common equity book value per share $ 43.28   $ 42.17   $ 40.45   $ 39.12   $ 38.56   $ 40.45  
Tangible book value per share (Non-GAAP) $ 36.77   $ 35.73   $ 33.98   $ 32.60   $ 32.02   $ 33.98  

 

Income Statement                        
Net interest income $ 52,318   $ 51,914   $ 53,236   $ 53,163   $ 52,714   $ 211,800  
Provision for loan/lease losses   601     445     2,058     272     1,045     3,942  
Noninterest income   18,520     19,407     19,858     18,603     21,158     77,449  
Noninterest expense   46,070     44,209     47,228     45,133     44,985     181,067  
Income tax expense   4,743     5,595     4,866     5,427     5,751     21,805  
Net income attributable to Tompkins Financial Corporation   19,392     21,040     18,911     20,902     22,059     82,308  
Noncontrolling interests   32     32     31     32     32     127  
Basic earnings per share (8) $ 1.27   $ 1.37   $ 1.24   $ 1.37   $ 1.44   $ 5.39  
Diluted earnings per share (8) $ 1.27   $ 1.37   $ 1.23   $ 1.36   $ 1.43   $ 5.35  

 

Nonperforming Assets                        
Originated nonaccrual loans and leases $ 16,543   $ 15,165   $ 19,340   $ 17,518   $ 19,082   $ 19,340  
Acquired nonaccrual loans and leases   2,363     2,579     2,856     2,659     2,673     2,856  
Originated loans and leases 90 days past due and accruing   0     0     0     0     0     0  
Troubled debt restructurings not included above   4,889     5,234     4,395     4,295     4,324     4,395  
Total nonperforming loans and leases   23,795     22,978     26,591     24,472     26,079     26,591  
OREO   2,229     1,595     1,595     1,870     2,233     1,595  
Total nonperforming assets $ 26,024   $ 24,573   $ 28,186   $ 26,342   $ 28,312   $ 28,186  

 

 
 

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

    Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio   Jun-19   Mar-19   Dec-18   Sep-18   Jun-18   Dec-18
Loans and leases 30-89 days past due and                        
accruing (2) $ 3,883   $ 4,193   $ 7,838   $ 6,454   $ 5,875   $ 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)   3,883     4,193     7,838     6,454     5,875     7,838  

 

Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7) $ 493   $ 474   $ 67   $ 1,109   $ 1,108   $ 67  
Loans 90 days or more past due   1,229     1,218     1,316     1,420     1,110     1,316  
Total acquired loans and leases past due and accruing   1,722     1,692     1,383     2,529     2,218     1,383  
Total loans and leases past due and accruing $ 5,605   $ 5,885   $ 9,221   $ 8,983   $ 8,093   $ 9,221  

 

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 40,245   $ 43,321   $ 41,289   $ 41,111   $ 40,107   $ 39,686  
Provision for loan and lease losses   590     480     2,046     208     1,035     3,897  
Net loan and lease (recoveries) charge-offs   146     3,556     14     30     31     262  
Allowance for loan and lease losses (originated                        
loan portfolio) - balance at end of period $ 40,689   $ 40,245   $ 43,321   $ 41,289   $ 41,111   $ 43,321  

 

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 83   $ 89   $ 69   $ 114   $ 104   $ 85  
Provision (credit) for loan and lease losses   11     (35 )   12     64     10     45  
Net loan and lease (recoveries) charge-offs   (7 )   (29 )   (8 )   109     —     41  
Allowance for loan and lease losses (acquired                        
loan portfolio) - balance at end of period   101     83     89     69     114     89  
                         
Total allowance for loan and lease losses $ 40,791   $ 40,328   $ 43,410   $ 41,358   $ 41,225   $ 43,410  

 

Loan Classification - Originated Portfolio                        
Special Mention $ 36,619   $ 33,689   $ 28,074   $ 34,245   $ 44,068   $ 28,074  
Substandard   44,770     35,895     43,963     49,597     41,572     43,963  
Loan Classification - Acquired Portfolio                        
Special Mention   265     270     452     465     469     452  
Substandard   2,857     2,830     2,914     3,041     3,180     2,914  
Loan Classifications - Total Portfolio                        
Special Mention   36,884     33,959     28,526     34,710     44,537     28,526  
Substandard   47,627     38,725     46,877     52,638     44,752     46,877  

 

 
 

 

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

 

Ratio Analysis

Credit Quality                        
Nonperforming loans and leases/total loans and leases (7)   0.49 %   0.48 %   0.55 %   0.51 %   0.54 %   0.55 %
Nonperforming assets/total assets   0.39 %   0.36 %   0.42 %   0.39 %   0.42 %   0.42 %
Allowance for originated loan and lease losses/total originated loans and leases   0.88 %   0.89 %   0.95 %   0.91 %   0.91 %   0.95 %
Allowance/nonperforming loans and leases   171.42 %   175.51 %   163.25 %   169.00 %   158.08 %   163.25 %
Net loan and lease losses annualized/total average loans and leases   0.01 %   0.30 %   0.00 %   0.01 %   0.00 %   0.01 %

 

    Year-Ended
Capital Adequacy (period-end)   Jun-19   Mar-19   Dec-18   Sep-18   Jun-18   Dec-18
Tangible common equity/tangible assets   8.50 %   8.24 %   7.81 %   7.49 %   7.36 %   7.81 %
                                     

 

Profitability                        
Return on average assets *   1.15 %   1.27 %   1.12 %   1.23 %   1.32 %   1.23 %
Return on average equity *   11.96 %   13.53 %   12.38 %   13.89 %   15.13 %   13.93 %
Net interest margin (TE) *   3.34 %   3.34 %   3.34 %   3.35 %   3.36 %   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
    Jun-19   Mar-19   Dec-18   Sep-18   Jun-18   Dec-18
Net income available to common shareholders $ 19,392   $ 21,040   $ 18,911   $ 20,902   $ 22,059   $ 82,308  
Income attributable to unvested stock-based compensation awards   306     349     291     318     359     1,315  
Net earnings allocated to common shareholders   19,086     20,691     18,620     20,584     21,700     80,993  
Gain on sale of real estate, net of tax   0     0     0     0     2,227     2,227  
Write-down of impaired leases, net of tax   0     0     0     (388 )   (1,527 )   (1,915 )
Net income (Non-GAAP)   19,086     20,691     18,620     20,972     21,000     80,681  
Weighted average shares outstanding (diluted) 15,085,945   15,136,523   15,135,750   15,144,491   15,135,970   15,132,257  
Adjusted diluted earnings per share (Non-GAAP) $ 1.27   $ 1.37   $ 1.23   $ 1.38   $ 1.39   $ 5.33  

 

Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity $ 656,201   $ 645,823   $ 619,459   $ 597,636   $ 589,173   $ 619,459  
Less:  Goodwill and intangibles (9)   98,698     98,694     99,106     99,543     99,983     99,106  
Tangible common equity   557,503     547,129     520,353     498,093     489,190     520,353  
Ending shares outstanding 15,160,719   15,314,078   15,312,377   15,277,915   15,278,430   15,312,377  
Tangible book value per share (Non-GAAP) $ 36.77   $ 35.73   $ 33.98   $ 32.60   $ 32.02   $ 33.98  

 

(1) Federal Reserve peer ratio as of March 31, 2019, 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.