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 22, 2021
Tompkins Financial Corporation Reports Third Quarter Earnings
ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation reported diluted earnings per share of $1.45 for the third quarter of 2021, compared to $1.63 reported for the third quarter of 2020. Net income for the third quarter of 2021 was $21.3 million, compared to $24.2 million for the same period in 2020. Results for the third quarter of 2021 were negatively impacted by approximately $4.1 million ($0.21 per share) of nonrecurring expenses related to the prepayment of borrowings and the redemption of trust preferred securities. Though these transactions had a negative impact on current period earnings, they are expected to have a favorable impact on future earnings by way of reduced interest expense. Additional details on these nonrecurring transactions are described below.
For the year-to-date period ended September 30, 2021, diluted earnings per share were $4.72, up 31.5% from $3.59 for the same year-to-date period in 2020. Year-to-date net income was $69.8 million for the nine month period ended September 30, 2021, up 30.2% compared to $53.6 million for the same period in 2020.
Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report record earnings performance through the first nine months of 2021. The third quarter of 2021 was down from the same quarter last year due to some nonrecurring expenses related to discretionary debt restructuring transactions. Despite higher expenses related to these transactions, several positive revenue trends were noted during the quarter, including growth in both net interest income and noninterest income when compared to the second quarter this year."
Exhibit 99.1
SELECTED HIGHLIGHTS FOR THE THIRD QUARTER:
| • | Net interest income was $56.1 million for the third quarter of 2021, up from $54.8 million reported in the second quarter of 2021, and down from $58.3 million reported in the same quarter of 2020. Net interest income in the third quarter of 2021 included a $1.2 million purchase accounting charge related to the redemption of $10.0 million in trust preferred securities. Net interest income for the second quarter of 2021 included a $650,000 purchase accounting charge related to the redemption of $5.2 million in trust preferred securities. |
| • | Total loans at September 30, 2021 were $5.1 billion compared to $5.4 billion at September 30, 2020, and $5.3 billion at year end 2020. The $301.5 million change in total loans compared to September 30, 2020, reflected a decline of $322.1 million in loans under the U.S. Small Business Administration's Paycheck Protection Program ("PPP") at the end of the third quarter of 2021 compared to the end of the third quarter of 2020. |
| • | Largely stable credit conditions and improving macroeconomic trends contributed to a lower allowance for credit losses at September 30, 2021 when compared to September 30, 2020. The provision for credit losses for the quarter and year-to-date periods ended September 30, 2021 were credits of $1.2 million and $6.1 million, respectively, compared to a credit of $218,000 and an expense of $17.4 million, respectively, for the same periods in 2020. |
| • | Noninterest income for the quarter was $20.9 million, reflecting an increase of 10.6% over the second quarter of 2021, and 10.4% over the third quarter of 2020. |
| • | Noninterest expense for the quarter was $50.2 million, an increase of 5.8% over the second quarter of 2021, and 7.3% over the same quarter last year. The increase in the third quarter of 2021 was largely related to $2.9 million of penalties related to prepayment of $135.0 million of FHLB borrowings. |
NET INTEREST INCOME
The net interest margin was 2.89% for the third quarter of 2021, compared to 2.91% for the second quarter of 2021, and 3.26% for the third quarter of 2020. Net interest income was $56.1 million for the third quarter of 2021, compared to $58.3 million for the third quarter of 2020. Interest income for the third quarter of 2021 included $3.3 million of net deferred loan fees associated with PPP loans, compared to net deferred PPP loan fees of $2.4 million in the third quarter of 2020. Interest expense for the third quarter of 2021 was negatively impacted by an accelerated non-cash purchase accounting discount of $1.2 million related to the redemption of $10.0 million in trust preferred securities.
For the year-to-date period ended September 30, 2021, net interest income of $166.0 million was down 1.0% when compared to the nine month period ended September 30, 2020. For the year-to-date period in 2021, net deferred loan fees associated with PPP loans were approximately $8.0 million as compared to $4.8 million in the same period of 2020. Interest expense for the nine months ended September 30, 2021, was negatively impacted by an accelerated non-cash purchase accounting discount of $1.9 million related to the redemption of $15.2 million in trust preferred securities. The $15.2 million in redeemed trust preferred securities carried a weighted average interest rate of 5.26% at the time they were redeemed and had a weighted average final maturity of slightly more than 11 years.
Exhibit 99.1
Average loans for the quarter ended September 30, 2021 were $5.1 billion compared to $5.4 billion in the same period in 2020. The $285.0 million change in average loan balances was primarily due to a decline in average PPP loans from the third quarter of 2020 to the third quarter of 2021.
Average securities for the quarter ended September 30, 2021, were up $788.2 million or 54.0% when compared to the same period in 2020. The increase is mainly a result of investing excess cash, driven by deposit growth and PPP loan forgiveness.
Asset yields for the quarter ended September 30, 2021 were down 44 basis points compared to the quarter ended September 30, 2020, which reflects the impact of reductions in market interest rates over the trailing twelve month period as well as a greater percentage of earning assets being comprised of lower yielding securities and interest bearing balances due from banks, when compared to the same period in 2020.
Average total deposits for the third quarter of 2021 were up $571.9 million, or 9.0% compared to the same period in 2020. Average noninterest bearing deposits for the three months ended September 30, 2021 were up $267.5 million or 14.1% compared to the three months ended September 30, 2020. Average deposit balances continue to benefit from the PPP loan program, as the majority of the proceeds of the PPP loans funded by Tompkins during 2020 and the first half of 2021 were deposited in Tompkins checking accounts. The total cost of interest-bearing liabilities was 0.39% for the quarter ended September 30, 2021, a decline of 11 basis points from the quarter ended September 30, 2020.
NONINTEREST INCOME
Noninterest income of $20.9 million for the third quarter of 2021, was up 10.4% compared to the same period in 2020. For the year-to-date period, noninterest income of $59.7 million was up 8.5% from the same period in 2020. Growth over the same quarter and nine-month periods in the prior year was supported by increases in nearly all fee income categories, including: Insurance commissions and fees (up 10.3% for the quarter, 11.7% for the year-to-date period), Investment services income (up 15.5% for the quarter, 15.6% for the year-to-date period), Service charges on deposit accounts up (13.4% for the quarter, down 2.0% for the year-to-date period), and Card services income (up 12.3% for the quarter, 16.9% for the year-to-date period). Noninterest income represented 27.1% of total revenues for the third quarter of 2021, as compared to 24.5% of total revenues for the third quarter of 2020.
Exhibit 99.1
NONINTEREST EXPENSE
Noninterest expense was $50.2 million for the third quarter of 2021, up $3.4 million, or 7.3%, from the third quarter of 2020. For the year-to-date period, noninterest expense was $142.1 million, up $4.4 million or 3.2% from the same period in 2020. Included in the quarter and year-to-date periods of 2021 were penalties of $2.9 million related to the prepayment of $135.0 million in FHLB fixed rate advances. The advances, which were paid off in September 2021, carried a weighted average interest rate of 2.26% and had a weighted average maturity of 1.25 years.
INCOME TAX EXPENSE
The Company's effective tax rate was 23.7% for the third quarter of 2021, compared to 20.7% for the same period in 2020. The effective tax rate for the nine months ended September 30, 2021 was 22.1%, compared to 20.4% reported for the same period in 2020.
ASSET QUALITY
The allowance for credit losses represented 0.91% of total loans and leases at September 30, 2021, down from 0.92% at June 30, 2021, and 0.98% at December 31, 2020. The ratio of the allowance to total nonperforming loans and leases declined to 76.2% at September 30, 2021, compared to 88.3% at June 30, 2021, and 112.9% at December 31, 2020.
The provision for credit loss expense for the third quarter of 2021 was a credit of $1.2 million compared to a credit of $218,000 for the same period in 2020. Net charge-offs for the quarter ended September 30, 2021 were $69,000 compared to net recoveries of $12,000 reported for the same period in 2020. Provision expense for the nine months ended September 30, 2021 was a credit of $6.1 million, compared to an expense of $17.4 million for the same period in 2020.
Nonperforming loans and leases totaled $60.7 million at September 30, 2021, compared to $53.8 million at June 30, 2021, and $45.8 million at December 31, 2020. The increase in nonperforming loans and leases compared to prior quarter end and year end 2020 was related to two commercial real estate relationships that moved into nonperforming status, totaling $9.1 million in the second quarter of 2021 and $7.5 million in the third quarter of 2021, which continue to accrue interest. Nonperforming assets represented 0.75% of total assets at September 30, 2021, up from 0.67% at June 30, 2021, and 0.60% at December 31, 2020.
Exhibit 99.1
Special Mention and Substandard loans and leases totaled $168.5 million at September 30, 2021, reflecting improvement from $171.3 million at June 30, 2021, and $189.9 million reported at December 31, 2020.
As previously announced, the Company implemented a payment deferral program in 2020 to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. As of September 30, 2021, total loans that continued in a deferral status amounted to approximately $12.8 million, representing 0.25% of total loans. At June 30, 2021 total loans in deferral status totaled $129.4 million, and at December 31, 2020 total loans in deferral status totaled $212.2 million. Included in nonperforming loans and leases and Substandard loans and leases at September 30, 2021, were 2 loans totaling $3.0 million that remained in deferral status.
The Company began accepting applications for PPP loans on April 3, 2020, and had funded 2,998 loans totaling approximately $465.6 million when the initial program ended. On January 19, 2021, the Company began accepting both first draw and second draw applications for the reopening of the PPP program. The 2021 PPP program funding closed for new applications on May 12, 2021. The Company funded 2,142 applications totaling $228.5 million in 2021.
Out of the total $694.1 million of PPP loans that the Company had funded through October 12, 2021, approximately $552.0 million had been forgiven by the SBA under the terms of the program. Total net deferred fees on the remaining balance of PPP loans amounted to $6.2 million at September 30, 2021.
CAPITAL POSITION
Capital ratios at September 30, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.21% at September 30, 2021, down from 14.62% reported at June 30, 2021, and 14.39% at December 31, 2020. The ratio of Tier 1 capital to average assets was 8.54% at September 30, 2021, compared to 8.79% at June 30, 2021, and 8.75% at December 31, 2020.
During the third quarter of 2021, the Company repurchased 170,775 common shares at an aggregate cost of $13.2 million. These shares were purchased under the Company's previously announced 2020 Stock Repurchase Program. During the first nine months of 2021, the Company repurchased 272,310 shares at an aggregate cost of $21.2 million.
The Company announced today that its Board of Directors has authorized a new stock repurchase program of up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, over the next 24 months. This program replaces the Company's existing 400,000 stock repurchase program announced on January 30, 2020.
Exhibit 99.1
The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company's stock and general market and economic conditions, and applicable legal requirements.
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, and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. The Company’s banks have announced plans for a rebranding effort, pursuant to which the Company’s four wholly-owned banking subsidiaries will be combined into one bank, with The Bank of Castile, Mahopac Bank, and VIST Bank merging with and into Tompkins Trust Company. The combined bank will conduct business under the “Tompkins” brand name, with a legal name of “Tompkins Community Bank.” 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. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain 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. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; the severity and duration of the COVID-19 pandemic and the impact of COVID-19 (including governments’ responses thereto) on economic and financial markets, potential regulatory actions, and modifications to our operations, products, and services relating thereto; disruptions in our and our customers’ operations and loss of revenue due to pandemics, epidemics, widespread health emergencies, government-imposed travel/business restrictions, or outbreaks of infectious diseases such as the coronavirus, and the associated adverse impact on our financial position, liquidity, and our customers’ abilities to repay their obligations to us or willingness to obtain financial services products from the Company; the development of an interest rate environment that may adversely affect the Company’s interest rate spread, 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, such as the Dodd-Frank Act, Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; legislative and regulatory changes in response to COVID-19 with which we and our subsidiaries must comply, including the CARES Act and the Consolidated Appropriations Act, 2021 and the rules and regulations promulgated thereunder, and state and local government mandates; technological developments and changes; 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; uncertainties arising from national and global events, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. The Company does not undertake any obligation to update its forward-looking statements.
Exhibit 99.1
| TOMPKINS FINANCIAL CORPORATION | ||||||
| CONSOLIDATED STATEMENTS OF CONDITION | ||||||
| (In thousands, except share and per share data) | As of | As of | ||||
| ASSETS | 9/30/2021 | 12/31/2020 | ||||
| Cash and noninterest bearing balances due from banks | $ | 22,441 | $ | 21,245 | ||
| Interest bearing balances due from banks | 311,046 | 367,217 | ||||
| Cash and Cash Equivalents | 333,487 | 388,462 | ||||
| Available-for-sale debt securities, at fair value (amortized cost of $2,072,498 at September 30, 2021 and $1,599,894 at December 31, 2020) | 2,066,927 | 1,627,193 | ||||
| Held-to-maturity securities, at amortized cost (fair value of $268,283 at September 30, 2021 and $0 December 31, 2020) | 269,268 | 0 | ||||
| Equity securities, at fair value (amortized cost $910 at September 30, 2021 and $929 at December 31, 2020) | 910 | 929 | ||||
| Total loans and leases, net of unearned income and deferred costs and fees | 5,096,778 | 5,260,327 | ||||
| Less: Allowance for credit losses | 46,259 | 51,669 | ||||
| Net Loans and Leases | 5,050,519 | 5,208,658 | ||||
| Federal Home Loan Bank and other stock | 10,366 | 16,382 | ||||
| Bank premises and equipment, net | 85,955 | 88,709 | ||||
| Corporate owned life insurance | 86,094 | 84,736 | ||||
| Goodwill | 92,447 | 92,447 | ||||
| Other intangible assets, net | 3,989 | 4,905 | ||||
| Accrued interest and other assets | 113,148 | 109,750 | ||||
| Total Assets | $ | 8,113,110 | $ | 7,622,171 | ||
| LIABILITIES | ||||||
| Deposits: | ||||||
| Interest bearing: | ||||||
| Checking, savings and money market | 4,211,732 | 3,761,933 | ||||
| Time | 675,499 | 746,234 | ||||
| Noninterest bearing | 2,203,667 | 1,929,585 | ||||
| Total Deposits | 7,090,898 | 6,437,752 | ||||
| Federal funds purchased and securities sold under agreements to repurchase | 72,490 | 65,845 | ||||
| Other borrowings | 110,000 | 265,000 | ||||
| Trust preferred debentures | 0 | 13,220 | ||||
| Other liabilities | 117,365 | 122,665 | ||||
| Total Liabilities | $ | 7,390,753 | $ | 6,904,482 | ||
| EQUITY | ||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,695,105 at September 30, 2021; and 14,964,389 at December 31, 2020 | 1,470 | 1,496 | ||||
| Additional paid-in capital | 315,957 | 333,976 | ||||
| Retained earnings | 464,152 | 418,413 | ||||
| Accumulated other comprehensive loss | (55,094) | (32,074) | ||||
| Treasury stock, at cost – 122,824 shares at September 30, 2021, and 124,849 shares at December 31, 2020 | (5,634) | (5,534) | ||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 720,851 | 716,277 | ||||
| Noncontrolling interests | 1,506 | 1,412 | ||||
| Total Equity | $ | 722,357 | $ | 717,689 | ||
| Total Liabilities and Equity | $ | 8,113,110 | $ | 7,622,171 | ||
Exhibit 99.1
| TOMPKINS FINANCIAL CORPORATION | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (In thousands, except per share data) (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||
| 9/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | |||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||
| Loans | $ | 53,738 | $ | 57,892 | $ | 161,598 | $ | 169,639 | ||||
| Due from banks | 136 | 83 | 266 | 90 | ||||||||
| Available-for-sale debt securities | 6,312 | 6,035 | 17,188 | 20,101 | ||||||||
| Held-to-maturity securities | 732 | 0 | 1,044 | 0 | ||||||||
| Federal Home Loan Bank and other stock | 196 | 306 | 608 | 1,130 | ||||||||
| Total Interest and Dividend Income | 61,114 | $ | 64,316 | $ | 180,704 | $ | 190,960 | |||||
| INTEREST EXPENSE | ||||||||||||
| Time certificates of deposits of $250,000 or more | 518 | 755 | 1,724 | 2,458 | ||||||||
| Other deposits | 2,088 | 3,450 | 6,835 | 13,723 | ||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 17 | 19 | 48 | 76 | ||||||||
| Trust preferred debentures | 1,237 | 216 | 2,233 | 758 | ||||||||
| Other borrowings | 1,156 | 1,623 | 3,883 | 6,357 | ||||||||
| Total Interest Expense | 5,016 | 6,063 | 14,723 | 23,372 | ||||||||
| Net Interest Income | 56,098 | 58,253 | 165,981 | 167,588 | ||||||||
| Less: (Credit) provision for credit loss expense | (1,232 | ) | (218 | ) | (6,133 | ) | 17,418 | |||||
| Net Interest Income After Provision for Credit Loss Expense | 57,330 | 58,471 | 172,114 | 150,170 | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Insurance commissions and fees | 9,833 | 8,916 | 27,053 | 24,216 | ||||||||
| Investment services income | 4,957 | 4,292 | 14,347 | 12,414 | ||||||||
| Service charges on deposit accounts | 1,638 | 1,444 | 4,579 | 4,675 | ||||||||
| Card services income | 2,717 | 2,419 | 8,051 | 6,885 | ||||||||
| Other income | 1,769 | 1,818 | 5,408 | 6,388 | ||||||||
| Net (loss) gain on securities transactions | (60) | (2) | 257 | 446 | ||||||||
| Total Noninterest Income | 20,854 | 18,887 | 59,695 | 55,024 | ||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and wages | 24,825 | 23,951 | 71,477 | 69,482 | ||||||||
| Other employee benefits | 5,777 | 6,690 | 17,887 | 18,260 | ||||||||
| Net occupancy expense of premises | 3,019 | 3,162 | 10,042 | 9,530 | ||||||||
| Furniture and fixture expense | 2,066 | 1,886 | 6,220 | 5,759 | ||||||||
| Amortization of intangible assets | 329 | 371 | 988 | 1,120 | ||||||||
| Other operating expense | 14,164 | 10,706 | 35,519 | 33,553 | ||||||||
| Total Noninterest Expenses | 50,180 | 46,766 | 142,133 | 137,704 | ||||||||
| Income Before Income Tax Expense | 28,004 | 30,592 | 89,676 | 67,490 | ||||||||
| Income Tax Expense | 6,630 | 6,330 | 19,781 | 13,779 | ||||||||
| Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation | 21,374 | 24,262 | 69,895 | 53,711 | ||||||||
| Less: Net Income Attributable to Noncontrolling Interests | 32 | 32 | 96 | 101 | ||||||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 21,342 | 24,230 | 69,799 | 53,610 | |||||||
| Basic Earnings Per Share | $ | 1.46 | $ | 1.63 | $ | 4.74 | $ | 3.60 | ||||
| Diluted Earnings Per Share | $ | 1.45 | $ | 1.63 | $ | 4.72 | $ | 3.59 | ||||
Exhibit 99.1
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||||
| September 30, 2021 | September 30, 2020 | |||||||||||||||
| 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 | $ | 376,341 | $ | 136 | 0.14 | % | $ | 326,908 | $ | 83 | 0.10 | % | ||||
| Securities (1) | ||||||||||||||||
| U.S. Government securities | 2,133,984 | 6,467 | 1.20 | % | 1,332,240 | 5,362 | 1.60 | % | ||||||||
| State and municipal (2) | 109,375 | 697 | 2.53 | % | 122,932 | 816 | 2.64 | % | ||||||||
| Other securities (2) | 3,417 | 23 | 2.64 | % | 3,433 | 25 | 2.88 | % | ||||||||
| Total securities | 2,246,776 | 7,187 | 1.27 | % | 1,458,605 | 6,203 | 1.69 | % | ||||||||
| FHLBNY and FRB stock | 15,330 | 196 | 5.07 | % | 18,319 | 307 | 6.66 | % | ||||||||
| Total loans and leases, net of unearned income (2)(3) | 5,115,253 | 53,989 | 4.19 | % | 5,400,217 | 58,507 | 4.31 | % | ||||||||
| Total interest-earning assets | 7,753,700 | 61,508 | 3.15 | % | 7,204,049 | 65,100 | 3.59 | % | ||||||||
| Other assets | 348,370 | 377,960 | ||||||||||||||
| Total assets | $ | 8,102,070 | $ | 7,582,009 | ||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Deposits | ||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||
| Interest bearing checking, savings, & money market | $ | 4,090,840 | $ | 906 | 0.09 | % | $ | 3,796,615 | $ | 1,671 | 0.18 | % | ||||
| Time deposits | 707,212 | 1,700 | 0.95 | % | 697,026 | 2,534 | 1.45 | % | ||||||||
| Total interest-bearing deposits | 4,798,052 | 2,606 | 0.22 | % | 4,493,641 | 4,205 | 0.37 | % | ||||||||
| Federal funds purchased & securities sold under agreements to repurchase | 60,798 | 17 | 0.11 | % | 47,527 | 19 | 0.16 | % | ||||||||
| Other borrowings | 224,459 | 1,156 | 2.04 | % | 303,587 | 1,623 | 2.13 | % | ||||||||
| Trust preferred debentures | 3,444 | 1,237 | 142.50 | % | 17,135 | 216 | 5.02 | % | ||||||||
| Total interest-bearing liabilities | 5,086,753 | 5,016 | 0.39 | % | 4,861,890 | 6,063 | 0.50 | % | ||||||||
| Noninterest bearing deposits | 2,165,537 | 1,897,999 | ||||||||||||||
| Accrued expenses and other liabilities | 116,663 | 112,636 | ||||||||||||||
| Total liabilities | 7,368,953 | 6,872,525 | ||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 731,629 | 707,996 | ||||||||||||||
| Noncontrolling interest | 1,488 | 1,488 | ||||||||||||||
| Total equity | 733,117 | 709,484 | ||||||||||||||
| Total liabilities and equity | $ | 8,102,070 | $ | 7,582,009 | ||||||||||||
| Interest rate spread | 2.76 | % | 3.10 | % | ||||||||||||
| Net interest income/margin on earning assets | 56,492 | 2.89 | % | 59,037 | 3.26 | % | ||||||||||
| Tax Equivalent Adjustment | (394) | (784) | ||||||||||||||
| Net interest income per consolidated financial statements | $ | 56,098 | $ | 58,253 | ||||||||||||
Exhibit 99.1
| Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) | ||||||||||||||||
| Year to Date Period Ended | Year to Date Period Ended | |||||||||||||||
| September 30, 2021 | September 30, 2020 | |||||||||||||||
| Average | Average | |||||||||||||||
| Balance | Balance | Average | ||||||||||||||
| (Dollar amounts in thousands) | (YTD) | Interest | (YTD) | Interest | Yield/Rate | |||||||||||
| ASSETS | ||||||||||||||||
| Interest-earning assets | ||||||||||||||||
| Interest-bearing balances due from banks | $ | 333,769 | $ | 266 | 0.11 | % | $ | 111,775 | $ | 90 | 0.11 | % | ||||
| Securities (1) | ||||||||||||||||
| U.S. Government securities | 1,920,717 | 16,417 | 1.14 | % | 1,242,659 | 18,236 | 1.96 | % | ||||||||
| State and municipal (2) | 114,809 | 2,200 | 2.56 | % | 110,058 | 2,225 | 2.70 | % | ||||||||
| Other securities (2) | 3,420 | 69 | 2.70 | % | 3,429 | 93 | 3.61 | % | ||||||||
| Total securities | 2,038,946 | 18,686 | 1.23 | % | 1,356,146 | 20,554 | 2.02 | % | ||||||||
| FHLBNY and FRB stock | 16,328 | 608 | 4.98 | % | 22,175 | 1,130 | 6.81 | % | ||||||||
| Total loans and leases, net of unearned income (2)(3) | 5,225,087 | 162,355 | 4.15 | % | 5,197,757 | 170,853 | 4.40 | % | ||||||||
| Total interest-earning assets | 7,614,130 | 181,915 | 3.19 | % | 6,687,853 | 192,627 | 3.85 | % | ||||||||
| Other assets | 346,441 | 536,424 | ||||||||||||||
| Total assets | $ | 7,960,571 | $ | 7,224,278 | ||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Deposits | ||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||
| Interest bearing checking, savings, & money market | $ | 4,002,724 | $ | 2,943 | 0.10 | % | $ | 3,557,326 | $ | 7,973 | 0.30 | % | ||||
| Time deposits | 727,445 | 5,616 | 1.03 | % | 693,922 | 8,208 | 1.58 | % | ||||||||
| Total interest-bearing deposits | 4,730,169 | 8,559 | 0.24 | % | 4,251,248 | 16,181 | 0.51 | % | ||||||||
| Federal funds purchased & securities sold under agreements to repurchase | 57,498 | 48 | 0.11 | % | 54,481 | 76 | 0.19 | % | ||||||||
| Other borrowings | 254,002 | 3,883 | 2.04 | % | 397,511 | 6,357 | 2.14 | % | ||||||||
| Trust preferred debentures | 9,849 | 2,233 | 30.32 | % | 17,093 | 758 | 5.93 | % | ||||||||
| Total interest-bearing liabilities | 5,051,518 | 14,723 | 0.39 | % | 4,720,332 | 23,372 | 0.66 | % | ||||||||
| Noninterest bearing deposits | 2,066,567 | 1,699,317 | ||||||||||||||
| Accrued expenses and other liabilities | 117,383 | 111,643 | ||||||||||||||
| Total liabilities | 7,235,468 | 6,531,292 | ||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 723,645 | 691,530 | ||||||||||||||
| Noncontrolling interest | 1,458 | 1,456 | ||||||||||||||
| Total equity | 725,103 | 692,986 | ||||||||||||||
| Total liabilities and equity | $ | 7,960,571 | $ | 7,224,278 | ||||||||||||
| Interest rate spread | 2.80 | % | 3.19 | % | ||||||||||||
| Net interest income/margin on earning assets | 167,192 | 2.94 | % | 169,255 | 3.38 | % | ||||||||||
| Tax Equivalent Adjustment | (1,211) | (1,667) | ||||||||||||||
| Net interest income per consolidated financial statements | $ | 165,981 | $ | 167,588 | ||||||||||||
Exhibit 99.1
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
| (In thousands, except per share data) | ||||||||||||||||||
| Quarter-Ended | Year-Ended | |||||||||||||||||
| Period End Balance Sheet | Sep-21 | Jun-21 | Mar-21 | Dec-20 | Sep-20 | Dec-20 | ||||||||||||
| Securities | $ | 2,337,105 | $ | 2,166,853 | $ | 1,935,731 | $ | 1,628,122 | $ | 1,667,698 | $ | 1,628,122 | ||||||
| Total Loans | 5,096,778 | 5,175,129 | 5,292,793 | 5,260,327 | 5,398,297 | 5,260,327 | ||||||||||||
| Allowance for credit losses | 46,259 | 47,505 | 49,339 | 51,669 | 52,293 | 51,669 | ||||||||||||
| Total assets | 8,113,110 | 7,988,208 | 8,095,342 | 7,622,171 | 7,794,502 | 7,622,171 | ||||||||||||
| Total deposits | 7,090,898 | 6,837,000 | 6,946,541 | 6,437,752 | 6,601,238 | 6,437,752 | ||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 72,490 | 52,134 | 47,496 | 65,845 | 63,573 | 65,845 | ||||||||||||
| Other borrowings | 110,000 | 245,000 | 265,000 | 265,000 | 285,000 | 265,000 | ||||||||||||
| Trust preferred debentures | 0 | 8,799 | 13,260 | 13,220 | 17,163 | 13,220 | ||||||||||||
| Total common equity | 720,851 | 726,779 | 708,493 | 716,277 | 712,104 | 716,277 | ||||||||||||
| Total equity | 722,357 | 728,253 | 709,936 | 717,689 | 713,611 | 717,689 | ||||||||||||
| Average Balance Sheet | ||||||||||||||||||
| Average earning assets | $ | 7,753,700 | $ | 7,609,792 | $ | 7,475,846 | $ | 7,408,335 | $ | 7,204,049 | $ | 6,868,958 | ||||||
| Average assets | 8,102,070 | 7,949,946 | 7,826,672 | 7,758,159 | 7,582,009 | 7,358,478 | ||||||||||||
| Average interest-bearing liabilities | 5,086,753 | 5,030,800 | 5,036,451 | 5,010,037 | 4,861,890 | 4,793,154 | ||||||||||||
| Average equity | 733,117 | 721,336 | 720,718 | 719,114 | 709,484 | 699,554 | ||||||||||||
| Share data | ||||||||||||||||||
| Weighted average shares outstanding (basic) | 14,494,533 | 14,654,774 | 14,676,410 | 14,715,124 | 14,697,532 | 14,703,390 | ||||||||||||
| Weighted average shares outstanding (diluted) | 14,568,334 | 14,737,735 | 14,757,558 | 14,751,303 | 14,727,741 | 14,742,040 | ||||||||||||
| Period-end shares outstanding | 14,659,195 | 14,829,873 | 14,906,785 | 14,928,479 | 14,926,252 | 14,928,479 | ||||||||||||
| Common equity book value per share | $ | 49.17 | $ | 49.01 | $ | 47.53 | $ | 47.98 | $ | 47.71 | $ | 47.98 | ||||||
| Income Statement | ||||||||||||||||||
| Net interest income | $ | 56,098 | $ | 54,846 | $ | 55,037 | $ | 57,751 | $ | 58,253 | $ | 225,339 | ||||||
| (Credit) provision for credit loss expense (5) | (1,232) | (3,071) | (1,830) | (205) | (218) | 17,213 | ||||||||||||
| Noninterest income | 20,854 | 18,858 | 19,983 | 18,836 | 18,887 | 73,860 | ||||||||||||
| Noninterest expense (5) | 50,180 | 47,442 | 44,511 | 46,616 | 46,766 | 184,320 | ||||||||||||
| Income tax expense | 6,630 | 6,471 | 6,680 | 6,145 | 6,330 | 19,924 | ||||||||||||
| Net income attributable to Tompkins Financial Corporation | 21,342 | 22,831 | 25,626 | 23,978 | 24,230 | 77,588 | ||||||||||||
| Noncontrolling interests | 32 | 31 | 33 | 53 | 32 | 154 | ||||||||||||
| Basic earnings per share (4) | 1.46 | 1.55 | 1.73 | 1.61 | 1.63 | 5.22 | ||||||||||||
| Diluted earnings per share (4) | 1.45 | 1.54 | 1.72 | 1.61 | 1.63 | 5.20 | ||||||||||||
| Nonperforming Assets | ||||||||||||||||||
| Nonaccrual loans and leases | $ | 47,941 | $ | 48,019 | $ | 41,656 | $ | 38,976 | $ | 26,944 | $ | 38,976 | ||||||
| Loans and leases 90 days past due and accruing | 7,463 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Troubled debt restructuring not included above | 5,343 | 5,776 | 6,069 | 6,803 | 6,864 | 6,803 | ||||||||||||
| Total nonperforming loans and leases | 60,747 | 53,795 | 47,725 | 45,779 | 33,808 | 45,779 | ||||||||||||
| OREO | 135 | 88 | 88 | 88 | 196 | 88 | ||||||||||||
| Total nonperforming assets | $ | 60,882 | $ | 53,883 | $ | 47,813 | $ | 45,867 | $ | 34,004 | $ | 45,867 | ||||||
Exhibit 99.1
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
| Quarter-Ended | Year-Ended | |||||||||||||||||
| Delinquency - Total loan and lease portfolio | Sep-21 | Jun-21 | Mar-21 | Dec-20 | Sep-20 | Dec-20 | ||||||||||||
| Loans and leases 30-89 days past due and | ||||||||||||||||||
| accruing | $ | 1,436 | $ | 1,692 | $ | 1,790 | $ | 3,012 | $ | 6,875 | $ | 3,012 | ||||||
| Loans and leases 90 days past due and accruing | 7,463 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
| Total loans and leases past due and accruing | 8,899 | 1,692 | 1,790 | 3,012 | 6,875 | 3,012 | ||||||||||||
| Allowance for Credit Losses | ||||||||||||||||||
| Balance at beginning of period | $ | 47,505 | $ | 49,339 | $ | 51,669 | $ | 52,293 | $ | 52,082 | $ | 39,892 | ||||||
| Impact of adopting ASC 326 | 0 | 0 | 0 | 0 | 0 | (2,534) | ||||||||||||
| (Credit) provision for credit losses | (1,177) | (2,718) | (2,510) | 6 | 199 | 16,151 | ||||||||||||
| Net loan and lease charge-offs (recoveries) | 69 | (884) | (180) | 630 | (12) | 1,840 | ||||||||||||
| Allowance for credit losses at end of period | $ | 46,259 | $ | 47,505 | $ | 49,339 | $ | 51,669 | $ | 52,293 | $ | 51,669 | ||||||
| Allowance for Credit Losses - Off-Balance Sheet Exposure | ||||||||||||||||||
| Balance at beginning of period | $ | 2,247 | $ | 2,600 | $ | 1,920 | $ | 2,131 | $ | 2,548 | $ | 477 | ||||||
| Impact of adopting ASC 326 | 0 | 0 | 0 | 0 | 0 | 381 | ||||||||||||
| (Credit) provision for credit losses | (55) | (353) | 680 | (211) | (417) | 1,062 | ||||||||||||
| Allowance for credit losses at end of period | $ | 2,192 | $ | 2,247 | $ | 2,600 | $ | 1,920 | $ | 2,131 | $ | 1,920 | ||||||
| Loan Classification - Total Portfolio | ||||||||||||||||||
| Special Mention | $ | 98,253 | $ | 108,269 | $ | 116,689 | $ | 121,253 | $ | 122,652 | $ | 121,253 | ||||||
| Substandard | 70,213 | 62,992 | 68,487 | 68,645 | 45,384 | 68,645 | ||||||||||||
Ratio Analysis
| Credit Quality | ||||||||||||
| Nonperforming loans and leases/total loans and leases | 1.19 | % | 1.04 | % | 0.90 | % | 0.87 | % | 0.63 | % | 0.87 | % |
| Nonperforming assets/total assets | 0.75 | % | 0.67 | % | 0.59 | % | 0.60 | % | 0.44 | % | 0.60 | % |
| Allowance for credit losses/total loans and leases | 0.91 | % | 0.92 | % | 0.93 | % | 0.98 | % | 0.97 | % | 0.98 | % |
| Allowance/nonperforming loans and leases | 76.15 | % | 88.31 | % | 103.38 | % | 112.87 | % | 154.68 | % | 112.87 | % |
| Net loan and lease losses annualized/total average loans and leases | 0.01 | % | (0.07) | % | (0.01) | % | 0.05 | % | 0.00 | % | 0.04 | % |
| Capital Adequacy | ||||||||||||
| Tier 1 Capital (to average assets) | 8.54 | % | 8.79 | % | 8.89 | % | 8.75 | % | 8.85 | % | 8.75 | % |
| Total Capital (to risk-weighted assets) | 14.21 | % | 14.62 | % | 14.62 | % | 14.39 | % | 14.26 | % | 14.39 | % |
| Profitability (period-end) | ||||||||||||
| Return on average assets * | 1.05 | % | 1.15 | % | 1.33 | % | 1.23 | % | 1.27 | % | 1.05 | % |
| Return on average equity * | 11.55 | % | 12.70 | % | 14.42 | % | 13.26 | % | 13.59 | % | 11.09 | % |
| Net interest margin (TE) * | 2.89 | % | 2.91 | % | 3.01 | % | 3.12 | % | 3.26 | % | 3.31 | % |
| * Quarterly ratios have been annualized | ||||||||||||
(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 2021 and 2020 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, 2020.
(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.