EX-99.1 2 ex99-1.htm PRESS RELEASE OF TOMPKINS FINANCIAL CORPORATION DATED OCTOBER 18, 2019

 

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, October 18, 2019

 

Tompkins Financial Corporation Reports Third Quarter Earnings

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

Tompkins Financial Corporation reported diluted earnings per share of $1.34 for the third quarter of 2019, down 1.5% from the $1.36 per share reported for the same quarter last year. Net income was $20.2 million for the third quarter of 2019, down from the $20.9 million reported for the same period in 2018.

For the year-to-date period ended September 30, 2019, diluted earnings per share were $3.97, down 3.6% from the $4.12 per share reported for the same period in 2018. Year-to-date net income was $60.6 million for the period ended September 30, 2019, a decrease of $2.8 million from the same period in 2018.

President and CEO, Stephen S. Romaine said “Despite earnings being down slightly from the prior year, the quarter saw improvement over the second quarter of 2019 in terms of net interest margin, returns on equity and diluted earnings per share. Solid growth in deposits and reduced borrowing costs contributed to the overall improvement from the second quarter, as did higher revenue from insurance and wealth management businesses.”

SELECTED HIGHLIGHTS FOR THE THIRD QUARTER:

•Total loans of $4.9 billion were up 1.1% over total loans at September 30, 2018
•Total deposits of $5.4 billion reflect an increase of 6.9% over the same period last year
•Net interest margin was 3.43% for the third quarter of 2019, up from 3.34% for the second quarter of 2019, and up from 3.35% for the same quarter last year
 
 

 

•Return on average equity was 12.15% for the third quarter of 2019, up from 11.96% for the second quarter of 2019, and down from 13.89% for the same quarter last year

NET INTEREST INCOME

Net interest income was relatively flat compared to the same quarter and year-to-date periods in 2018. Third quarter 2019 net interest income was $53.2 million, unchanged from the same quarter last year. Net interest income for the third quarter reflected an increase over the second quarter of 2019, driven largely by lower funding costs, which benefited from lower market interest rates, the paydown of borrowings, and growth in noninterest-bearing deposits. The net interest margin for the third quarter of 2019 was 3.43%, compared to 3.34% for the second quarter of 2019, and 3.35% reported for the third quarter of 2018.

Year-to-date net interest income of $157.4 million was down compared to the $158.6 million reported for the same period last year. Year-to-date yield on interest-earning assets of 4.21% in 2019 was up from 3.96% for the same period last year. Average loans were up $75.9 million, or 1.6% in the first nine months of 2019, compared to the same period in 2018. Average total deposits were up $169.0 million, or 3.5% in the first nine months of 2019, versus the same period in 2018. Average noninterest-bearing deposits for the first nine months of 2019 were up $14.2 million or 1.0% compared to the same period in 2018. The average rate paid on interest-bearing deposits increased 42 basis points in the first nine months of 2019, compared to the same period in 2018.

NONINTEREST INCOME

Noninterest income for the third quarter of 2019 was up 5.0% compared to the same period last year. Noninterest income represented 26.7% of total revenues in the first nine months of 2019, compared to 26.6% in the same period in 2018. Fee income associated with insurance, wealth management, deposit services, and card services were all up over the same quarter last year, with a combined increase of $903,000, or 5.5%.

NONINTEREST EXPENSE

Noninterest expense was $45.7 million for the third quarter of 2019, up $522,000, or 1.2%, over the third quarter of 2018. For the year-to-date period, noninterest expense was $135.9 million, up $2.1 million, or 1.6%, from the same period in 2018. The increase in noninterest expense for both the third quarter and year-to-date periods reflects normal annual increases in salaries and wages. Current quarter other operating expense was reduced by deposit insurance credits received from the FDIC, which included $1.2 million that were applied during the third quarter of 2019.

 

 
 

INCOME TAX EXPENSE

The Company's effective tax rate was 21.3% in the third quarter of 2019, compared to 20.6% for the same period in 2018.

ASSET QUALITY

Asset quality trends remained strong in the third quarter of 2019, despite an increase in nonperforming assets during the third quarter of 2019. Nonperforming assets represented 0.47% of total assets at September 30, 2019, compared to 0.42% at December 31, 2018, and 0.39% at September 30, 2018. Nonperforming asset levels remain below the most recent Federal Reserve Board Peer Group Average1 of 0.60%.

Provision for loan and lease losses was $1.3 million for the third quarter of 2019, compared to $272,000 for the third quarter of 2018. Net charge-offs for the third quarter of 2019 were $739,000 compared to $139,000 reported in the third quarter of 2018.

The Company’s allowance for originated loan and lease losses totaled $41.2 million at September 30, 2019, and represented 0.89% of total originated loans and leases at September 30, 2019, up from 0.88% for the most recent prior quarter, and down from 0.91% at September 30, 2018. The total allowance represented 137.46% of total nonperforming loans and leases at September 30, 2019, compared to 163.25% at December 31, 2018, and 169.00% at September 30, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 9.43% at September 30, 2019, improved from 9.25% reported for the quarter ended June 30, 2019, and 8.89% reported for September 30, 2018.

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 09/30/2019 12/31/2018
     
Cash and noninterest bearing balances due from banks $ 124,939   $ 78,524  
Interest bearing balances due from banks 2,488   1,865  
Cash and Cash Equivalents 127,427   80,389  
     
Available-for-sale securities, at fair value (amortized cost of $1,140,086 at September 30, 2019 and $1,363,902 at December 31, 2018) 1,142,452   1,332,658  
Held-to-maturity securities, at amortized cost (fair value of $142,583 at September 30, 2019 and $139,377 at December 31, 2018) 138,657   140,579  
Equity securities, at fair value (amortized cost $1,000 at September 30, 2019 and $1,000 at December 31, 2018) 917   887  
Originated loans and leases, net of unearned income and deferred costs and fees 4,628,616   4,568,741  
Acquired loans 228,457   265,198  
Less:  Allowance for loan and lease losses 41,371   43,410  
Net Loans and Leases 4,815,702   4,790,529  
     
Federal Home Loan Bank and other stock 24,881   52,262  
Bank premises and equipment, net 94,861   97,202  
Corporate owned life insurance 82,516   81,928  
Goodwill 92,447   92,283  
Other intangible assets, net 6,647   7,628  
Accrued interest and other assets 101,475   82,091  
Total Assets $ 6,627,982   $ 6,758,436  
LIABILITIES    
Deposits:    
Interest bearing:    
  Checking, savings and money market 3,165,622   2,853,190  
  Time 701,444   637,295  
Noninterest bearing 1,502,924   1,398,474  
Total Deposits 5,369,990   4,888,959  
     
Federal funds purchased and securities sold under agreements to repurchase 50,541   81,842  
Other borrowings 429,000   1,076,075  
Trust preferred debentures 16,992   16,863  
Other liabilities 101,594   73,826  
Total Liabilities $ 5,968,117   $ 6,137,565  
EQUITY    
Tompkins Financial Corporation shareholders' equity:    
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,011,660 at September 30, 2019; and 15,348,287 at December 31, 2018 1,501   1,535  
Additional paid-in capital 341,654   366,595  
Retained earnings 357,165   319,396  
Accumulated other comprehensive loss (36,851 ) (63,165 )
Treasury stock, at cost – 121,880 shares at September 30, 2019, and 122,227 shares at December 31, 2018 (5,111 ) (4,902 )
Total Tompkins Financial Corporation Shareholders’ Equity 658,358   619,459  
     
Noncontrolling interests 1,507   1,412  
Total Equity $ 659,865   $ 620,871  
Total Liabilities and Equity $ 6,627,982   $ 6,758,436  
     
 
 

 

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

(In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended
  09/30/2019 09/30/2018 09/30/2019 09/30/2018
INTEREST AND DIVIDEND INCOME        
Loans $ 57,621   $ 54,769   $ 169,685   $ 158,419  
Due from banks 11   8   31   22  
Available-for-sale securities 6,511   7,448   22,055   22,821  
Held-to-maturity securities 862   860   2,583   2,572  
Federal Home Loan Bank and other stock 770   899   2,442   2,433  
Total Interest and Dividend Income 65,775   63,984   196,796   186,267  
INTEREST EXPENSE        
Time certificates of deposits of $250,000 or more 823   563   2,184   1,088  
Other deposits 7,582   3,830   20,409   9,699  
Federal funds purchased and securities sold under agreements to repurchase 34   35   110   115  
Trust preferred debentures 317   318   974   904  
Other borrowings 3,862   6,075   15,731   15,897  
Total Interest Expense 12,619   10,821   39,408   27,703  
Net Interest Income 53,156   53,163   157,388   158,564  
Less:  Provision for loan and lease losses 1,320   272   2,366   1,884  
Net Interest Income After Provision for Loan and Lease Losses 51,836   52,891   155,022   156,680  
NONINTEREST INCOME        
Insurance commissions and fees 8,517   7,903   24,314   22,684  
Investment services income 4,175   4,097   12,166   12,365  
Service charges on deposit accounts 2,191   2,088   6,210   6,300  
Card services income 2,550   2,442   8,090   7,209  
Other income 1,963   2,057   6,247   8,743  
Net gain on securities transactions 138   16   434   290  
Total Noninterest Income 19,534   18,603   57,461   57,591  
NONINTEREST EXPENSE        
Salaries and wages 22,960   22,029   66,149   64,404  
Other employee benefits 5,821   5,300   17,094   15,859  
Net occupancy expense of premises 3,236   3,057   10,095   9,873  
Furniture and fixture expense 1,919   1,814   5,894   5,461  
Amortization of intangible assets 421   440   1,251   1,334  
Other operating expense 11,298   12,493   35,451   36,908  
Total Noninterest Expenses 45,655   45,133   135,934   133,839  
Income Before Income Tax Expense 25,715   26,361   76,549   80,432  
Income Tax Expense 5,478   5,427   15,816   16,939  
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 20,237   20,934   60,733   63,493  
Less:  Net Income Attributable to Noncontrolling Interests 31   32   95   96  
Net Income Attributable to Tompkins Financial Corporation $ 20,206   $ 20,902   $ 60,638   $ 63,397  
Basic Earnings Per Share $ 1.34   $ 1.37   $ 3.99   $ 4.15  
Diluted Earnings Per Share $ 1.34   $ 1.36   $ 3.97   $ 4.12  
         
     

 

 
 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                             
      Quarter Ended YTD Period Ended YTD Period Ended
        September 30, 2019   September 30, 2019   September 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 $ 2,908   $ 11 1.50 % $ 2,460 $ 31 1.68 % $ 2,121 $ 22 1.39 %
  Securities (4)                        
    U.S. Government securities   1,219,318   6,822 2.22 %   1,338,807 22,990 2.30 %   1,438,322 23,763 2.21 %
    State and municipal (5)   91,675   639 2.76 %   93,131 1,903 2.73 %   97,556 1,898 2.60 %
    Other securities (5)   3,419   39 4.52 %   3,417 120 4.70 %   3,516 113 4.30 %
    Total securities   1,314,412   7,500 2.26 %   1,435,355 25,013 2.33 %   1,539,394 25,774 2.24 %
  FHLBNY and FRB stock   33,359   770 9.16 %   42,634 2,442 7.66 %   52,802 2,433 6.16 %
                             
  Total loans and leases, net of unearned income (5)(6)   4,852,399   57,904 4.73 %   4,816,140 170,540 4.73 %   4,740,257 159,398 4.50 %
  Total interest-earning assets   6,203,078   66,185 4.23 %   6,296,589 198,026 4.21 %   6,334,574 187,627 3.96 %
                             
Other assets   418,334         405,358       351,949    
                             
  Total assets $ 6,621,412       $ 6,701,947     $ 6,686,523    
LIABILITIES & EQUITY                        
Deposits                        
  Interest-bearing deposits                        
    Interest bearing checking, savings & money market $ 2,998,574   5,423 0.72 % $ 2,962,236 14,865 0.67 % $ 2,806,119 6,118 0.29 %
    Time deposits   694,822   2,982 1.70 %   670,570 7,728 1.54 %   671,888 4,669 0.93 %
    Total interest-bearing deposits   3,693,396   8,405 0.90 %   3,632,806 22,593 0.83 %   3,478,007 10,787 0.41 %
                             
Federal funds purchased & securities sold under                        
    agreements to repurchase   57,607   34 0.23 %   61,482 110 0.24 %   62,956 115 0.24 %
Other borrowings   647,112   3,862 2.37 %   861,930 15,731 2.44 %   1,113,120 15,897 1.91 %
Trust preferred debentures   16,964   318 7.44 %   16,921 974 7.70 %   16,749 904 7.22 %
  Total interest-bearing liabilities   4,415,079   12,619 1.13 %   4,573,139 39,408 1.15 %   4,670,832 27,703 0.79 %
                             
Non-interest bearing deposits   1,445,051         1,380,399       1,366,219    
Accrued expenses and other liabilities   101,632         101,483       63,682    
  Total liabilities   5,961,762         6,055,021       6,100,733    
                             
Tompkins Financial Corporation Shareholders’ equity   658,159         645,466       584,331    
Noncontrolling interest   1,491         1,460       1,459    
  Total equity   659,650         646,926       585,790    
                             
  Total liabilities and equity $ 6,621,412       $ 6,701,947     $ 6,686,523    
Interest rate spread       3.10 %       3.05 %       3.17 %
  Net interest income/margin on earning assets     53,566 3.43 %     158,618 3.37 %     159,924 3.38 %
                             
Tax equivalent adjustments     (410)       (1,230)       (1,360)  
                             
  Net interest income per consolidated financial statements     $ 53,156       $ 157,388       $ 158,564  
                                                     

 

 
 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)                        
  Quarter-Ended Year-Ended
Period End Balance Sheet   Sep-19     Jun-19     Mar-19     Dec-18     Sep-18     Dec-18  
Securities $ 1,282,026   $ 1,330,719   $ 1,484,151   $ 1,474,124   $ 1,452,788   $ 1,474,124  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   4,628,616     4,608,483     4,532,803     4,568,741     4,531,241     4,568,741  
Acquired loans and leases (3)   228,457     247,319     256,897     265,198     271,468     265,198  
Allowance for  loan and lease losses   41,371     40,790     40,328     43,410     41,358     43,410  
Total assets   6,627,982     6,654,390     6,738,719     6,758,436     6,746,960     6,758,436  
Total deposits   5,369,990     4,988,897     4,989,925     4,888,959     5,025,082     4,888,959  
Federal funds purchased and securities sold under agreements to repurchase   50,541     63,978     66,918     81,842     52,875     81,842  
Other borrowings   429,000     824,562     923,427     1,076,075     988,515     1,076,075  
Trust preferred debentures   16,992     16,949     16,906     16,863     16,820     16,863  
Total common equity   658,358     656,201     645,823     619,459     597,636     619,459  
Total equity   659,865     657,677     647,267     620,871     599,144     620,871  

 

 

Average Balance Sheet                        
Average earning assets $ 6,203,078   $ 6,337,983   $ 6,350,325   $ 6,364,113   $ 6,356,781   $ 6,342,019  
Average assets   6,621,412     6,742,409     6,743,360     6,710,944     6,716,452     6,692,678  
Average interest-bearing liabilities   4,415,079     4,638,249     4,668,875     4,606,536     4,644,533     4,654,625  
Average equity   659,650     650,079     630,731     606,238     597,211     590,944  

 

Share data                        
Weighted average shares outstanding (basic) 14,827,114   15,019,710   15,060,175   15,057,673   15,047,405   15,039,229  
Weighted average shares outstanding (diluted) 14,887,626   15,085,945   15,136,523   15,135,750   15,144,491   15,132,257  
Period-end shares outstanding 14,975,750   15,160,719   15,314,078   15,312,377   15,277,915   15,312,377  
Common equity book value per share $ 43.96   $ 43.28   $ 42.17   $ 40.45   $ 39.12   $ 40.45  
Tangible book value per share (Non-GAAP) (10) $ 37.40   $ 36.77   $ 35.73   $ 33.98   $ 32.60   $ 33.98  

 

Income Statement                        
Net interest income $ 53,156   $ 52,318   $ 51,914   $ 53,236   $ 53,163   $ 211,800  
Provision for loan/lease losses   1,320     601     445     2,058     272     3,942  
Noninterest income   19,534     18,520     19,407     19,858     18,603     77,449  
Noninterest expense   45,655     46,070     44,209     47,228     45,133     181,067  
Income tax expense   5,478     4,743     5,595     4,866     5,427     21,805  
Net income attributable to Tompkins Financial Corporation   20,206     19,392     21,040     18,911     20,902     82,308  
Noncontrolling interests   31     32     32     31     32     127  
Basic earnings per share (8) $ 1.34   $ 1.27   $ 1.37   $ 1.24   $ 1.37   $ 5.39  
Diluted earnings per share (8) $ 1.34   $ 1.27   $ 1.37   $ 1.23   $ 1.36   $ 5.35  

 

 
 

 

Nonperforming Assets                        
Originated nonaccrual loans and leases $ 21,404   $ 16,543   $ 15,165   $ 19,340   $ 17,518   $ 19,340  
Acquired nonaccrual loans and leases   2,164     2,363     2,579     2,856     2,659     2,856  
Originated loans and leases 90 days past due and accruing   0     0     0     0     0     0  
Troubled debt restructuring not included above   6,528     4,889     5,234     4,395     4,295     4,395  
Total nonperforming loans and leases   30,096     23,795     22,978     26,591     24,472     26,591  
OREO   888     2,229     1,595     1,595     1,870     1,595  
Total nonperforming assets $ 30,984   $ 26,024   $ 24,573   $ 28,186   $ 26,342   $ 28,186  

 

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

    Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio   Sep-19     Jun-19     Mar-19     Dec-18     Sep-18     Dec-18  
Loans and leases 30-89 days past due and                        
accruing (2) $ 3,287   $ 3,883   $ 4,193   $ 7,838   $ 6,454   $ 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)   3,287     3,883     4,193     7,838     6,454     7,838  

 

Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7) $ 232   $ 493   $ 474   $ 67   $ 1,109   $ 67  
Loans 90 days or more past due   1,219     1,229     1,218     1,316     1,420     1,316  
Total acquired loans and leases past due and accruing   1,451     1,722     1,692     1,383     2,529     1,383  
Total loans and leases past due and accruing $ 4,738   $ 5,605   $ 5,885   $ 9,221   $ 8,983   $ 9,221  

 

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 40,689   $ 40,245   $ 43,321   $ 41,289   $ 41,111   $ 39,686  
Provision for loan and lease losses   1,245     590     480     2,046     208     3,897  
Net loan and lease (recoveries) charge-offs   703     146     3,556     14     30     262  
Allowance for loan and lease losses (originated                        
loan portfolio) - balance at end of period $ 41,231   $ 40,689   $ 40,245   $ 43,321   $ 41,289   $ 43,321  

 

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 101   $ 83   $ 89   $ 69   $ 114   $ 85  
Provision (credit) for loan and lease losses   75     11     (35 )   12     64     45  
Net loan and lease (recoveries) charge-offs   36     (7 )   (29 )   (8 )   109     41  
Allowance for loan and lease losses (acquired                        
loan portfolio) - balance at end of period   140     101     83     89     69     89  
                         
Total allowance for loan and lease losses $ 41,371   $ 40,791   $ 40,328   $ 43,410   $ 41,358   $ 43,410  

 

Loan Classification - Originated Portfolio                        
Special Mention $ 41,314   $ 36,619   $ 33,689   $ 28,074   $ 34,245   $ 28,074  
Substandard   58,873     44,770     35,895     43,963     49,597     43,963  
Loan Classification - Acquired Portfolio                        
Special Mention   261     265     270     452     465     452  
Substandard   2,809     2,857     2,830     2,914     3,041     2,914  
Loan Classifications - Total Portfolio                        
Special Mention   41,575     36,884     33,959     28,526     34,710     28,526  
Substandard   61,682     47,627     38,725     46,877     52,638     46,877  

 

 
 

 

Ratio Analysis

Credit Quality                        
Nonperforming loans and leases/total loans and leases (7)   0.62 %   0.49 %   0.48 %   0.55 %   0.51 %   0.55 %
Nonperforming assets/total assets   0.47 %   0.39 %   0.36 %   0.42 %   0.39 %   0.42 %
Allowance for originated loan and lease losses/total originated loans and leases   0.89 %   0.88 %   0.89 %   0.95 %   0.91 %   0.95 %
Allowance/nonperforming loans and leases   137.46 %   171.42 %   175.51 %   163.25 %   169.00 %   163.25 %
Net loan and lease losses annualized/total average loans and leases   0.06 %   0.01 %   0.30 %   0.00 %   0.01 %   0.01 %

 

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

    Year-Ended
Capital Adequacy (period-end)   Sep-19   Jun-19   Mar-19   Dec-18   Sep-18   Dec-18
Tier 1 Capital (to average assets)   9.43 %   9.25 %   9.24 %   9.05 %   8.89 %   9.05 %
Common Equity Tier 1 Capital (to risk-weighted assets)   12.14 %   12.13 %   12.19 %   11.84 %   11.65 %   11.84 %

 

Profitability                        
Return on average assets *   1.21 %   1.15 %   1.27 %   1.12 %   1.23 %   1.23 %
Return on average equity *   12.15 %   11.96 %   13.53 %   12.38 %   13.89 %   13.93 %
Net interest margin (TE) *   3.43 %   3.34 %   3.34 %   3.34 %   3.35 %   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 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 Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)
    Quarter-Ended Year-Ended
    Sep-19     Jun-19     Mar-19     Dec-18     Sep-18     Dec-18  
Net income available to common shareholders $ 20,206   $ 19,392   $ 21,040   $ 18,911   $ 20,902   $ 82,308  
Income attributable to unvested stock-based compensation awards   317     306     349     291     318     1,315  
Net earnings allocated to common shareholders (GAAP)   19,889     19,086     20,691     18,620     20,584     80,993  
Weighted average shares outstanding (diluted) 14,887,626   15,085,945   15,136,523   15,135,750   15,144,491   15,132,257  
Diluted earnings per share (8) $ 1.34   $ 1.27 $ 1.37 $ 1.23 $ 1.36 $ 5.35
Adjustments for non-operating income and expense:
  Gain on sale of real estate, net of tax   0     0     0     0     0     2,227  
  Write-down of impaired leases, net of tax   0     0     0     0     (388 )   (1,915 )
  Adjusted net income (Non-GAAP) (10)   19,889     19,086     20,691     18,620     20,972     80,681  
Weighted average shares outstanding (diluted) 14,887,626   15,085,945   15,136,523   15,135,750   15,144,491   15,132,257  
Adjusted diluted earnings per share (Non-GAAP) (10) $ 1.34   $ 1.27   $ 1.37   $ 1.23   $ 1.38   $ 5.33  

 

 
 

 

Reconciliation of Common Equity Book Value Per Share (GAAP) to Tangible Book Value Per Share (non-GAAP)
Total common equity $ 658,358   $ 656,201   $ 645,823   $ 619,459   $ 597,636   $ 619,459  
Less:  Goodwill and intangibles (9)   98,277     98,698     98,694     99,106     99,543     99,106  
Tangible common equity (Non-GAAP) (10)   560,081     557,503     547,129     520,353     498,093     520,353  
Ending shares outstanding 14,975,750   15,160,719   15,314,078   15,312,377   15,277,915   15,312,377  
Tangible book value per share (Non-GAAP) (10) $ 37.40   $ 36.77   $ 35.73   $ 33.98   $ 32.60   $ 33.98  

  

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

Reconciliation of Year to Date Common Equity Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)  
  Sep-19 Sep-18
Net income available to common shareholders $60,638   $63,397  
Income attributable to unvested stock-based compensation awards 972   1,024  
Net earnings allocated to common shareholders (GAAP) 59,666   62,373  
Weighted average shares outstanding (diluted) 15,035,780   15,131,018  
Diluted earnings per share (8) $3.97 $4.12
Adjustments for non-operating income and expense:    
  Gain on sale of real estate, net of tax 0   2,227  
  Write-down of impaired leases, net of tax 0   (1,915 )
Adjusted net income (Non-GAAP) (10) 59,666   62,061  
Weighted average shares outstanding (diluted) 15,035,780   15,131,018  
Adjusted diluted earnings per share (Non-GAAP) (10) $3.97 $4.10

 

(1) Federal Reserve peer ratio as of June 30, 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.

(10) See "Non-GAAP Measures" above for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measure presented in accordance with GAAP.