EX-99.1 2 ex99-1.htm PRESS RELEASE

 

Tompkins Financial Corp 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, January 28, 2022

 

Tompkins Financial Corporation Reports Record Full Year Earnings

 

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

For the year ended December 31, 2021 Tompkins Financial Corporation (“the Company”) reported record diluted earnings per share of $6.05, up 16.4% from December 31, 2020. Net income for 2021 was $89.3 million, an increase of $11.7 million compared to the same period in 2020. Results for 2020 included a $16.8 million provision for credit losses recognized in the first quarter reflecting economic stress due to the COVID-19 pandemic.

 

The Company reported diluted earnings per share of $1.33 for the fourth quarter of 2021, down 17.4% compared to $1.61 reported in the fourth quarter of 2020. Net income for the fourth quarter of 2021 was $19.5 million, a $4.5 million decrease when compared to the same period in 2020.

 

Tompkins President and CEO, Stephen Romaine, commented, “We are pleased to report record earnings for the year ended December 31, 2021. Earnings per share for the quarter were down from the same period last year largely due to higher provision for credit losses in the current period, which included the charge-off of a commercial real estate relationship that was heavily impacted by pandemic related economic shut downs. Despite the loss recognized during the quarter, other credit quality metrics showed improvement from the most recent prior quarter, including reductions in nonperforming loans and loans in deferral status.”

 

SELECTED HIGHLIGHTS FOR THE PERIOD:

•Total loans at December 31, 2021 were $5.1 billion compared to $5.3 billion at year-end 2020, which was driven by a decline of $220.0 million in loans under the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”) at year-end 2021 compared to year-end 2020. Total loans, exclusive of PPP loan balances, were up for the second consecutive quarter.
•Total nonperforming loans at December 31, 2021, declined by $14.6 million compared to December 31, 2020, while the ratio of total nonperforming loans and leases to total loans and leases dropped to 0.61% at year-end 2021 compared to 0.87% at year-end 2020.
•Total noninterest-bearing deposits at December 31, 2021, were up 10.7% compared to December 31, 2020 and represented 31.5% of total deposits as of December 31, 2021.
•Total revenue of $302.6 million for the year ended December 31, 2021, was up 1.2% over the same period last year, benefiting from growth in fee income business lines including insurance, wealth management, and card services.

 

 

 

 

NET INTEREST INCOME

Net interest income was $57.8 million for both the fourth quarter of 2021 and 2020. Net interest income was $223.8 million for year-to-date 2021, down from $225.3 million reported for the same period in 2020. Net interest income in 2021 included a $1.9 million purchase accounting charge related to the redemption of $15.2 million in trust preferred securities.

 

Average loans for the year ended December 31, 2021 were in line with average loans for the year ended December 31, 2020. Average loan yields for the year ended December 31, 2021, were down 22 basis points compared to 2020, which reflects the impact of reductions in market interest rates in 2021 and 2020.

 

Average total deposits for 2021 were up $735.3 million, or 12.0% compared to 2020. Average noninterest bearing deposits for 2021 were up $343.3 million or 19.6% compared to 2020. Average deposit balances benefited from PPP loan originations, the proceeds of which were primarily deposited in Tompkins checking accounts. For 2021, the average rate paid on interest-bearing deposit products decreased by 23 basis points from 2020. The total cost of interest-bearing liabilities for 2021 declined by 25 basis points to 0.35% from 2020.

 

Net interest margin was 3.01% for the fourth quarter of 2021, up compared to the 2.89% reported for the third quarter of 2021, and down compared to the 3.12% reported for the fourth quarter of 2020. The improvement in fourth quarter 2021 net interest margin compared to the third quarter of 2021 was mainly due to a $1.9 million decrease in wholesale funding costs, driven largely by the redemption of $10.0 million of trust preferred securities and the prepayment of $135.0 million of FHLB borrowings in the third quarter of 2021. The redemption of the trust preferred securities resulted in a $1.2 million purchase accounting charge in the third quarter of 2021. The decline in fourth quarter net interest margin, when compared to the fourth quarter of 2020, was mainly due to a 27-basis point decrease in overall asset yields. The decrease in average asset yields was due to lower securities yields as well as a slight shift in the composition of average earning assets, with a greater mix of lower yielding securities and interest-bearing balances, and a decrease in average loan balances reflecting lower PPP loan balances. The decrease in average asset yields was partially offset by lower average funding costs.

 

NONINTEREST INCOME

Noninterest income represented 24.9% of total revenues in the fourth quarter of 2021, compared to 24.6% in the same period in 2020. Noninterest income of $19.2 million for the fourth quarter of 2021 was up 1.7% compared to the same period in 2020. For the full year, noninterest income of $78.8 million was up 6.8% from 2020. When compared to prior year, 2021 insurance revenue was up $3.3 million or 10.6%, and benefited from new business growth and rising premium rates for commercial and personal lines policies. Investment services experienced revenue growth of $1.9 million, or 10.7%, benefiting from successful business development efforts as well as increased fees tied to asset values in existing accounts. Card services income was up $1.6 million, or 16.9%, and is largely driven by customer spending activities that have increased with improved economic conditions as pandemic restrictions have eased.

 

NONINTEREST EXPENSE

Noninterest expense was $48.2 million for the fourth quarter of 2021, up $1.5 million, or 3.3%, over the fourth quarter of 2020. For the full fiscal year, noninterest expense was $190.3 million, up $6.0 million, or 3.2%, over 2020. The year-to-date period in 2021 includes $2.9 million in penalties related to the prepayment of $135.0 million in FHLB fixed rate advances. Also contributing to the increase in noninterest expense for the year ended December 31, 2021 were normal annual increases in salaries and wages, which were up $3.5 million or 3.8% over 2020.

 

INCOME TAX EXPENSE

The Company’s effective tax rate was 21.7% for the fourth quarter of 2021, compared to 20.4% for the same period in 2020. The effective tax rate for the year ended December 31, 2021 was 22.0%, compared to 20.4% reported for 2020. The increase in the effective tax rate for the three and year ended December 31, 2021 over the same periods in 2020 was due to a higher level of taxable income to total income.

 

 

 

 

ASSET QUALITY

Improved credit quality and improving macroeconomic trends contributed to a lower allowance for credit losses at December 31, 2021 when compared to December 31, 2020. The allowance for credit losses represented 0.84% of total loans and leases at December 31, 2021, down from 0.91% at September 30, 2021, and 0.98% at December 31, 2020. The ratio of the allowance to total nonperforming loans and leases was 137.49% at December 31, 2021, up compared to 76.15% at September 30, 2021 and 112.87% at December 31, 2020.

 

The provision for credit loss expense for the fourth quarter of 2021 was $3.9 million compared to a credit of $205,000 for the same period in 2020. Provision expense for the year ended December 31, 2021 was a credit of $2.2 million, compared to an expense of $17.2 million for 2020. The provision for credit losses in 2020 included a provision expense of $16.8 million in the first quarter related to the impact of the economic condition related to COVID-19. Net charge-offs for the fourth quarter of 2021 were $7.0 million compared to net charge-offs of $630,000 reported in the fourth quarter of 2020. The fourth quarter of 2021 included a $7.0 million charge-off of a commercial real estate relationship consisting of two loans that were previously reported as nonperforming loans.

 

Nonperforming assets represented 0.40% as of December 31, 2021, down from 0.75% at September 30, 2021, and 0.60% at December 31, 2020. At December 31, 2021 nonperforming loans and leases totaled $31.2 million, compared to $60.7 million at September 30, 2021, and $45.8 million at December 31, 2020.

 

Special Mention and Substandard loans and leases totaled $137.6 million at December 31, 2021, reflecting improvement from $168.5 million at September 30, 2021, and $189.9 million 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 December 31, 2021, total loans that continued in a deferral status amounted to approximately $4.5 million, representing 0.09% of total loans. At December 31, 2020 total loans in deferral status totaled $212.2 million.

 

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, approximately $620.2 million had been forgiven by the SBA under the terms of the program as of December 31, 2021. Total net deferred fees on the remaining balance of PPP loans amounted to $3.0 million at December 31, 2021.

 

CAPITAL POSITION

Capital ratios at December 31, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.23% at December 31, 2021, compared to 14.21% at September 30, 2021, and 14.39% at December 31, 2020. The ratio of Tier 1 capital to average assets was 8.72% at December 31, 2021, compared to 8.54% at September 30, 2021, and 8.75% at December 31, 2020.

 

During the fourth quarter of 2021, the Company repurchased 32,203 common shares at an aggregate cost of $2.6 million. These shares were purchased under the Company’s Stock Repurchase Program announced in the third quarter of 2021. During 2021, the Company repurchased 304,513 shares at an aggregate cost of $23.8 million.

 

Mr. Romaine added, “We are excited to report that effective January 1, 2022, our four community banks were combined into a single charter. Though we expect the change to be largely transparent to our customers, it will allow us to better leverage the Tompkins brand in all of our markets. We also anticipate some operating efficiencies from the change and we will be better able to leverage product and technology enhancements for the benefit of customers across our footprint. The combined bank will conduct business under the “Tompkins” brand name, with a legal name of “Tompkins Community Bank.”

 

 

 

 

 

 

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank, 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 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 ongoing dynamic nature of the COVID-19 pandemic and the impact of COVID-19 (including governments’ responses thereto), including the development and proliferation of variants such as Delta and Omicron, 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.

 

 

 

 

 

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION

 

(In thousands, except share and per share data)  As of  As of
ASSETS  12/31/2021  12/31/2020
     (Audited)
Cash and noninterest bearing balances due from banks  $23,078   $21,245 
Interest bearing balances due from banks   40,029    367,217 
Cash and Cash Equivalents   63,107    388,462 
Available-for-sale debt securities, at fair value (amortized cost of $2,063,790 at December 31, 2021 and $1,599,894 at December 31, 2020)   2,044,513    1,627,193 
Held-to-maturity securities, at amortized cost (fair value of $282,288 at December 31, 2021 and $0 December 31, 2020)   284,009    0 
Equity securities, at fair value (amortized cost $902 at December 31, 2021 and $929 at December 31, 2020)   902    929 
Total loans and leases, net of unearned income and deferred costs and fees   5,075,467    5,260,327 
Less:  Allowance for credit losses   42,843    51,669 
Net Loans and Leases   5,032,624    5,208,658 
Federal Home Loan Bank and other stock   10,996    16,382 
Bank premises and equipment, net   85,416    88,709 
Corporate owned life insurance   86,495    84,736 
Goodwill   92,447    92,447 
Other intangible assets, net   3,643    4,905 
Accrued interest and other assets   115,830    109,750 
Total Assets  $7,819,982   $7,622,171 
LIABILITIES          
Deposits:          
Interest bearing:          
  Checking, savings and money market   4,016,025    3,761,933 
  Time   639,674    746,234 
Noninterest bearing   2,135,736    1,929,585 
Total Deposits   6,791,435    6,437,752 
Federal funds purchased and securities sold under agreements to repurchase   66,787    65,845 
Other borrowings   124,000    265,000 
Trust preferred debentures   0    13,220 
Other liabilities   108,819    122,665 
Total Liabilities  $7,091,041   $6,904,482 
EQUITY          
Tompkins Financial Corporation shareholders’ equity:          
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,696,911 at December 31, 2021; and 14,964,389 at December 31, 2020   1,470    1,496 
Additional paid-in capital   312,538    333,976 
Retained earnings   475,262    418,413 
Accumulated other comprehensive loss   (55,950)   (32,074)
Treasury stock, at cost – 124,709 shares at December 31, 2021, and 124,849 shares at December 31, 2020   (5,791)   (5,534)
Total Tompkins Financial Corporation Shareholders’ Equity   727,529    716,277 
Noncontrolling interests   1,412    1,412 
Total Equity  $728,941   $717,689 
Total Liabilities and Equity  $7,819,982   $7,622,171 

 

 

 

 

 

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

 

(In thousands, except per share data) (Unaudited)  Three Months Ended   Year Ended
    12/31/2021    12/31/2020    12/31/2021    12/31/2020 
INTEREST AND DIVIDEND INCOME                    
Loans  $53,086   $57,674   $214,684   $227,313 
Due from banks   77    104    343    194 
Available-for-sale debt securities   6,252    5,349    23,440    25,450 
Held-to-maturity securities   1,031    0    2,075    0 
Federal Home Loan Bank and other stock   168    243    776    1,373 
Total Interest and Dividend Income   60,614   $63,370   $241,318   $254,330 
INTEREST EXPENSE                    
Time certificates of deposits of $250,000 or more   478    717    2,202    3,175 
Other deposits   1,810    3,066    8,645    16,789 
Federal funds purchased and securities sold under agreements to repurchase   16    19    64    95 
Trust preferred debentures   0    375    2,233    1,133 
Other borrowings   499    1,442    4,382    7,799 
Total Interest Expense   2,803    5,619    17,526    28,991 
Net Interest Income   57,811    57,751    223,792    225,339 
Less:  Provision (credit) for credit loss expense   3,914    (205)   (2,219)   17,213 
Net Interest Income After Provision for Credit Loss Expense   53,897    57,956    226,011    208,126 
NONINTEREST INCOME                    
Insurance commissions and fees   7,783    7,289    34,836    31,505 
Investment services income   5,041    5,106    19,388    17,520 
Service charges on deposit accounts   1,768    1,637    6,347    6,312 
Card services income   2,775    2,378    10,826    9,263 
Other income   1,795    2,429    7,203    8,817 
Net (loss) gain on securities transactions   (8)   (3)   249    443 
Total Noninterest Income   19,154    18,836    78,849    73,860 
NONINTEREST EXPENSE                    
Salaries and wages   24,561    23,037    96,038    92,519 
Other employee benefits   6,285    6,552    24,172    24,812 
Net occupancy expense of premises   3,137    3,400    13,179    12,930 
Furniture and fixture expense   2,108    2,087    8,328    7,846 
Amortization of intangible assets   329    364    1,317    1,484 
Other operating expense   11,734    11,176    47,253    44,729 
Total Noninterest Expenses   48,154    46,616    190,287    184,320 
Income Before Income Tax Expense   24,897    30,176    114,573    97,666 
Income Tax Expense   5,401    6,145    25,182    19,924 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation   19,496    24,031    89,391    77,742 
Less:  Net Income Attributable to Noncontrolling Interests   31    53    127    154 
Net Income Attributable to Tompkins Financial Corporation  $19,465    23,978    89,264    77,588 
Basic Earnings Per Share  $1.34   $1.61   $6.08   $5.22 
Diluted Earnings Per Share  $1.33   $1.61   $6.05   $5.20 

 

 

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
  Quarter Ended Quarter Ended
  December 31, 2021 December 31, 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 $ 228,570 $ 77 0.13 % $ 439,726 $ 104 0.09 %
Securities (1)            
U.S. Government securities 2,248,954 6,728 1.19 % 1,502,226 4,671 1.24 %
State and municipal (2) 105,215 672 2.53 % 127,580 823 2.57 %
Other securities (2) 3,407 23 2.64 % 3,430 24 2.78 %
Total securities 2,357,576 7,423 1.25 % 1,633,236 5,518 1.34 %
FHLBNY and FRB stock 10,382 168 6.42 % 16,766 244 5.80 %
Total loans and leases, net of unearned income (2)(3) 5,064,028 53,354 4.18 % 5,318,607 57,949 4.33 %
Total interest-earning assets 7,660,556 61,022 3.16 % 7,408,335 63,815 3.43 %
Other assets 333,260     349,824    
Total assets $ 7,993,816     $ 7,758,159    
LIABILITIES & EQUITY            
Deposits            
Interest-bearing deposits            
Interest bearing checking, savings, & money market $ 4,130,652 $ 793 0.08 % $ 3,927,433 $ 1,457 0.15 %
Time deposits 663,713 1,495 0.89 % 734,009 2,326 1.26 %
Total interest-bearing deposits 4,794,365 2,288 0.19 % 4,661,442 3,783 0.32 %
Federal funds purchased & securities sold under agreements to repurchase 61,976 16 0.11 % 60,417 19 0.12 %
Other borrowings 110,370 499 1.79 % 271,087 1,442 2.12 %
Trust preferred debentures 0 0 0.00 % 17,091 375 8.73 %
Total interest-bearing liabilities 4,966,711 2,803 0.22 % 5,010,037 5,619 0.45 %
Noninterest bearing deposits 2,185,489     1,913,781    
Accrued expenses and other liabilities 118,997     115,227    
Total liabilities 7,271,197     7,039,045    
Tompkins Financial Corporation Shareholders’ equity 721,123     717,618    
Noncontrolling interest 1,496     1,496    
Total equity 722,619     719,114    
             
Total liabilities and equity $ 7,993,816     $ 7,758,159    
Interest rate spread     2.94 %     2.98 %
Net interest income/margin on earning assets   58,219 3.01 %   58,196 3.12 %
             
Tax Equivalent Adjustment   (408)     (445)  
Net interest income per consolidated financial statements   $ 57,811     $ 57,751  

 

 

 

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
  Year to Date Period Ended Year to Date Period Ended
  December 31, 2021 December 31, 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 $ 307,253 $ 343 0.11 % $ 194,211 $ 194 0.10 %
Securities (1)            
U.S. Government securities 2,003,450 23,145 1.16 % 1,307,905 22,906 1.75 %
State and municipal (2) 112,391 2,871 2.55 % 114,462 3,048 2.66 %
Other securities (2) 3,417 92 2.68 % 3,430 117 3.40 %
Total securities 2,119,258 26,108 1.23 % 1,425,797 26,071 1.83 %
FHLBNY and FRB stock 14,830 776 5.24 % 20,815 1,374 6.60 %
Total loans and leases, net of unearned income (2)(3) 5,184,491 215,709 4.16 % 5,228,135 228,805 4.38 %
Total interest-earning assets 7,625,832 242,936 3.19 % 6,868,958 256,444 3.73 %
Other assets 343,119     489,520    
Total assets $ 7,968,951     $ 7,358,478    
LIABILITIES & EQUITY            
Deposits            
Interest-bearing deposits            
Interest bearing checking, savings, & money market $ 4,034,969 $ 3,736 0.09 % $ 3,650,358 $ 9,430 0.26 %
Time deposits 711,381 7,111 1.00 % 703,999 10,534 1.50 %
Total interest-bearing deposits 4,746,350 10,847 0.23 % 4,354,357 19,964 0.46 %
Federal funds purchased & securities sold under agreements to repurchase 58,627 64 0.11 % 55,973 95 0.17 %
Other borrowings 217,799 4,382 2.01 % 365,732 7,799 2.13 %
Trust preferred debentures 7,367 2,233 30.32 % 17,092 1,133 6.63 %
Total interest-bearing liabilities 5,030,143 17,526 0.35 % 4,793,154 28,991 0.60 %
Noninterest bearing deposits 2,096,542     1,753,226    
Accrued expenses and other liabilities 117,790     112,544    
Total liabilities 7,244,475     6,658,924    
Tompkins Financial Corporation Shareholders’ equity 723,009     698,087    
Noncontrolling interest 1,467     1,466    
Total equity 724,476     699,554    
             
Total liabilities and equity $ 7,968,951     $ 7,358,478    
Interest rate spread     2.84 %     3.13 %
Net interest income/margin on earning assets   225,410 2.96 %   227,453 3.31 %
             
Tax Equivalent Adjustment   (1,618)     (2,114)  
Net interest income per consolidated financial statements   $ 223,792     $ 225,339  

 

 

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)            
  Quarter-Ended Year-Ended
Period End Balance Sheet Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21
Securities $ 2,329,424 $ 2,337,105 $ 2,166,853 $ 1,935,731 $ 1,628,122 $ 2,329,424
Total Loans 5,075,467 5,096,778 5,175,129 5,292,793 5,260,327 5,075,467
Allowance for credit losses 42,843 46,259 47,505 49,339 51,669 42,843
Total assets 7,819,982 8,113,110 7,988,208 8,095,342 7,622,171 7,819,982
Total deposits 6,791,435 7,090,898 6,837,000 6,946,541 6,437,752 6,791,435
Federal funds purchased and securities sold under agreements to repurchase 66,787 72,490 52,134 47,496 65,845 66,787
Other borrowings 124,000 110,000 245,000 265,000 265,000 124,000
Trust preferred debentures 0 0 8,799 13,260 13,220 0
Total common equity 727,529 720,851 726,779 708,493 716,277 727,529
Total equity 728,941 722,357 728,253 709,936 717,689 728,941

 

Average Balance Sheet            
Average earning assets $ 7,660,556 $ 7,753,700 $ 7,609,792 $ 7,475,846 $ 7,408,335 $ 7,625,832
Average assets 7,993,816 8,102,070 7,949,946 7,826,672 7,758,159 7,968,951
Average interest-bearing liabilities 4,966,711 5,086,753 5,030,800 5,036,451 5,010,037 5,030,143
Average equity 722,619 733,117 721,336 720,718 719,114 724,476

 

Share data            
Weighted average shares outstanding (basic) 14,452,775 14,494,533 14,654,774 14,676,410 14,715,124 14,568,763
Weighted average shares outstanding (diluted) 14,532,480 14,568,334 14,737,735 14,757,558 14,751,303 14,648,167
Period-end shares outstanding 14,661,001 14,659,195 14,829,873 14,906,785 14,928,479 14,661,001
Common equity book value per share $ 49.62 $ 49.17 $ 49.01 $ 47.53 $ 47.98 $ 49.62

 

Income Statement            
Net interest income $ 57,811 $ 56,098 $ 54,846 $ 55,037 $ 57,751 $ 223,792
Provision (credit) for credit loss expense (5) 3,914 (1,232) (3,071) (1,830) (205) (2,219)
Noninterest income 19,154 20,854 18,858 19,983 18,836 78,849
Noninterest expense (5) 48,154 50,180 47,442 44,511 46,616 190,287
Income tax expense 5,401 6,630 6,471 6,680 6,145 25,182
Net income attributable to Tompkins Financial Corporation 19,465 21,342 22,831 25,626 23,978 89,264
Noncontrolling interests 31 32 31 33 53 127
Basic earnings per share (4) 1.34 1.46 1.55 1.73 1.61 6.08
Diluted earnings per share (4) 1.33 1.45 1.54 1.72 1.61 6.05

 

Nonperforming Assets            
Nonaccrual loans and leases

$ 26,033 

 $ 47,941 $ 48,019 $ 41,656 $ 38,976 $ 26,033
Loans and leases 90 days past due and accruing 0 7,463 0 0 0 0
Troubled debt restructuring not included above 5,124 5,343 5,776 6,069 6,803 5,126
Total nonperforming loans and leases 31,157 60,747 53,795 47,725 45,779 31,159
OREO 135 135 88 88 88 135
Total nonperforming assets $ 31,292 $ 60,882 $ 53,883 $ 47,813 $ 45,867 $ 31,294

 

 

 

 

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

  Quarter-Ended Year-Ended
Delinquency - Total loan and lease portfolio Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-21
Loans and leases 30-89 days past due and accruing $ 3,072 $ 1,436 $ 1,692 $ 1,790 $ 3,012 $ 3,072
Loans and leases 90 days past due and accruing 0 7,463 0 0 0 0
Total loans and leases past due and accruing 3,072 8,899 1,692 1,790 3,012 3,072

 

Allowance for Credit Losses
Balance at beginning of period $ 46,259 $ 47,505 $ 49,339 $ 51,669 $ 52,293 $ 51,669
Provision (credit) for credit losses 3,600 (1,177) (2,718) (2,510) 6 $ (2,805)
Net loan and lease charge-offs (recoveries) 7,016 69 (884) (180) 630 $ 6,021
Allowance for credit losses at end of period $ 42,843 $ 46,259 $ 47,505 $ 49,339 $ 51,669 $ 42,844
             
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period $ 2,192 $ 2,247 $ 2,600 $ 1,920 $ 2,131 $ 1,920
(Credit) provision  for credit losses 314 (55) (353) 680 (211) $ 586
Allowance for credit losses at end of period $ 2,506 $ 2,192 $ 2,247 $ 2,600 $ 1,920 $ 2,506

 

Loan Classification - Total Portfolio            
Special Mention $ 85,530 $ 98,253 $ 108,269 $ 116,689 $ 121,253 $ 85,530
Substandard 52,047 70,213 62,992 68,487 68,645 52,047

 

Ratio Analysis

Credit Quality            
Nonperforming loans and leases/total loans and leases 0.61 % 1.19 % 1.04 % 0.90 % 0.87 % 0.61 %
Nonperforming assets/total assets 0.40 % 0.75 % 0.67 % 0.59 % 0.60 % 0.40 %
Allowance for credit losses/total loans and leases 0.84 % 0.91 % 0.92 % 0.93 % 0.98 % 0.84 %
Allowance/nonperforming loans and leases 137.51 % 76.15 % 88.31 % 103.38 % 112.87 % 137.49 %
Net loan and lease losses annualized/total average loans and leases 0.55 % 0.01 % (0.07) % (0.01) % 0.05 % 0.12 %

 

 

Capital Adequacy            
Tier 1 Capital (to average assets) 8.72 % 8.54 % 8.79 % 8.89 % 8.75 % 8.75 %
Total Capital (to risk-weighted assets) 14.23 % 14.21 % 14.62 % 14.62 % 14.39 % 14.39 %

 

Profitability (period-end)            
Return on average assets * 0.97 % 1.05 % 1.15 % 1.33 % 1.23 % 1.12 %
Return on average equity * 10.69 % 11.55 % 12.70 % 14.42 % 13.26 % 12.32 %
Net interest margin (TE) * 3.01 % 2.89 % 2.91 % 3.01 % 3.12 % 2.96 %
* 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, 2021.

(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.