EX-99.1 2 ex99-1.htm PRESS RELEASE

 

Tompkins Financial Corporation 8-K

Exhibit 99.1

 

 

 

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

 

For Immediate Release

Friday, January 27, 2023

Tompkins Financial Corporation Reports Increase in Fourth Quarter Earnings

 

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

Tompkins Financial Corporation (“Tompkins” or the “Company”) reported diluted earnings per share of $1.36 for the fourth quarter of 2022, up 2.3% compared to $1.33 reported in the fourth quarter of 2021. Net income for the fourth quarter of 2022 was $19.5 million, which was unchanged when compared to the same period in 2021.

 

For the year ended December 31, 2022, diluted earnings per share of $5.89 were down 2.6% compared to the year ended December 31, 2021. Net income for 2022 was $85.0 million, a decrease of $4.2 million compared to the year ended December 31, 2021. Significant contributors to the negative variance in annual net income included a reduction in net deferred loan fees associated with PPP loans from $11.2 million in 2021 to $3.0 million in 2022, as well as an increase in provision for credit loss expense, which was a credit of $2.2 million in 2021 versus an expense of $2.8 million in 2022.

 

During the fourth quarter of 2022, the Company sold its VISA Class B common shares, recognizing a pre-tax gain of $11.4 million. Also in the fourth quarter of 2022, the Company sold $147.9 million of available-for-sale securities, recognizing a pre-tax loss on the sale of $11.9 million. The available-for-sale securities sold during the quarter had an average yield of 0.41% and remaining life of 2.1 years. Proceeds from the sale of the VISA Class B shares and the available-for-sale securities were used to pay down overnight borrowings with the FHLB.

 

  

 

Tompkins President and CEO, Stephen Romaine, commented, “We are pleased to report earnings growth in the fourth quarter of 2022, when compared to the same quarter last year. The quality of our balance sheet remains a strength, as we had net credit recoveries for the year and nonperforming loans remain near historic lows. Our performance metrics remain strong as we begin a new year facing economic uncertainty and a challenging interest rate environment. We remain focused on growth that is built on quality customer relationships and on improving the overall efficiency of our Company.”

 

SELECTED HIGHLIGHTS FOR THE PERIOD:

•Total loans at December 31, 2022 were $5.3 billion, up $60.5 million over the immediate prior quarter, reflecting an annualized increase of 4.7% from September 30, 2022, and up $193.4 million or 3.8% from December 31, 2021. Excluding PPP loans, total loans at December 31, 2022 were up 5.3% over year-end 2021.
•Total deposits at December 31, 2022 were $6.6 billion, down $189.1 million or 2.8% from December 31, 2021, while noninterest bearing deposits of $2.2 billion were up $14.4 million or 0.7% over the same time period.
•Net interest margin of 3.02% for the quarter ended December 31, 2022 was down from 3.04% for the quarter ended September 30, 2022, and up from 3.01% for the quarter ended December 31, 2021.
•Return on average equity for the year ended December 31, 2022 of 13.25% was higher than any of the previous three years.

 

NET INTEREST INCOME

Net interest margin was 3.02% for the fourth quarter of 2022, down compared to the 3.04% reported for the third quarter of 2022, and up compared to the 3.01% reported for the fourth quarter of 2021. The decrease in margin from the third quarter of 2022 was due primarily to the increase in interest expense on interest-bearing deposits and short-term borrowings, partially offset by higher yields on loan, securities and cash, reflective of the higher interest rate environment.

 

Net interest income was $57.3 million for the fourth quarter of 2022, down from $58.1 million for the third quarter of 2022 and $57.8 million for the fourth quarter of 2021. Full year net interest income was $230.3 million for the year ended December 31, 2022, up from $223.8 million reported for the year ended December 31, 2021.

 

Comparisons to prior periods are impacted by net fees on PPP loans, which have largely paid down during 2022. Net interest income in the current quarter included $5,000 of net deferred loan fees associated with PPP loans, down from $88,000 of net deferred PPP loan fees for the third quarter of 2022, and $3.2 million of net deferred PPP loan fees for the fourth quarter of 2021. Full year net interest income for 2021 included net deferred loan fees associated with PPP loans of $11.2 million and a $1.9 million purchase accounting charge related to the redemption of $15.2 million in trust preferred securities; full year net deferred loan fees on PPP loans in 2022 were $3.0 million.

  

 

 

Average loans for the quarter ended December 31, 2022 increased $145.7 million, or 2.9%, compared to the same period in 2021, and were in line with average loans for the third quarter of 2022. The increase in average loans as compared to the same period in the prior year was mainly in commercial and residential real estate loans, which were up 7.9% and 4.9%, respectively. Commercial and industrial loans were down 14.6%, mainly driven by lower PPP loan balances. Average loan yields for the quarter ended December 31, 2022 were up 27 basis points from the third quarter of 2022 and up 32 basis points compared to the same period in 2021.

 

Average loans for the year ended December 31, 2022 were in line with average loans for the year ended December 31, 2021. Average loan yields for the year ended December 31, 2022, were up 9 basis points compared to 2021, which reflects the impact of rising market interest rates in 2022.

 

Average total deposits for the fourth quarter of 2022 were down $261.8 million, or 3.8%, compared to the same period in 2021 and were down $108.1 million, or 1.6%, compared to average deposits for the third quarter of 2022. The decrease was largely driven by inflation and higher rate alternatives due to current interest rate environment and tighter monetary policy. The total cost of interest-bearing liabilities of 0.84% for the fourth quarter of 2022 represented an increase of 39 basis points over the third quarter of 2022, and an increase of 62 basis points over the same period in 2021.

 

Average total deposits for 2022 were flat compared to 2021. Average noninterest bearing deposits for 2022 were up $90.2 million, or 4.3%, compared to 2021. The total cost of interest-bearing liabilities for full year ended December 31, 2022 increased by 8 basis points to 0.43% from the same period in 2021.

 

NONINTEREST INCOME

Noninterest income of $18.4 million for the fourth quarter of 2022 was down 4.2% compared to the same period in 2021. Negatively impacting noninterest income during the quarter were lower wealth management fees, primarily due to market conditions, as well as a net loss on sale of securities of $455,000.

 

For the full year 2022, noninterest income of $78.0 million was down 1.1% from 2021. Year to date 2022 noninterest income reflected higher revenue from insurance commissions, deposit fees and card services fees, which were offset by lower wealth management fees and net losses of $634,000 on securities transactions.

 

  

 

NONINTEREST EXPENSE

Noninterest expense was $50.2 million for the fourth quarter of 2022, up $2.0 million, or 4.2%, over the fourth quarter of 2021, with the increase largely driven by higher personnel related costs. Increased spending on marketing and technology also contributed to expense growth in the fourth quarter of 2022 compared to the same period in 2021.

 

For the full year 2022, noninterest expense was $195.8 million, up $5.5 million, or 2.9%, over 2021. The growth in noninterest expense for the year-to-date period was primarily driven by increases in salaries, wages and benefits and other noninterest expense. Contributing to the growth in these expense items were nonrecurring expenses of $1.2 million, related to the consolidation and rebranding of the Company’s four banking charters The year-to-date period in 2021 included $2.9 million in penalties related to the prepayment of $135.0 million in FHLB fixed rate advances.

 

INCOME TAX EXPENSE

The Company’s effective tax rate was 18.6% for the fourth quarter of 2022, compared to 21.7% for the same period in 2021. The effective tax rate for the year ended December 31, 2022 was 22.4%, compared to 22.0% reported for 2021.

 

The Company’s banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim these benefits is that the consolidated company has qualified assets of no more than $8.0 billion for the taxable year. Prior to the fourth quarter of 2022, the Company expected to exceed the asset threshold and its effective tax rate reflected the anticipated loss of these tax benefits. With the decrease in total assets between September 30, 2022 and December 31, 2022, the Company retained the tax benefits, and as a result, adjusted its tax rate in the fourth quarter of 2022 to reflect the retention of the benefits. The Company will continue to monitor consolidated average assets to determine future eligibility.

 

ASSET QUALITY

The allowance for credit losses represented 0.87% of total loans and leases at December 31, 2022, up from 0.86% at September 30, 2022 and 0.84% at December 31, 2021. The ratio of the allowance to total nonperforming loans and leases improved to 139.85% at December 31, 2022, up compared to 128.27% at September 30, 2022 and 137.51% at December 31, 2021.

 

The provision for credit loss expense for the fourth quarter of 2022 was $1.4 million compared to $3.9 million for the same period in 2021. Provision expense for the year ended December 31, 2022 was an expense of $2.8 million, compared to a credit of $2.2 million for 2021. The increase in the provision for credit losses for the year-ended December 31, 2022 is mainly driven by current economic forecasts coupled with loan growth.

  

 

 

Nonperforming assets represented 0.43% of total assets at December 31, 2022, down from 0.45% at September 30, 2022, and up from 0.40% at December 31, 2021. At December 31, 2022, nonperforming loans and leases totaled $32.8 million, compared to $34.9 million at September 30, 2022 and $31.2 million at December 31, 2021.

 

Special Mention and Substandard loans and leases totaled $98.3 million at December 31, 2022, reflecting improvement from $106.7 million at September 30, 2022, and $137.6 million at December 31, 2021.

 

CAPITAL POSITION

Capital ratios at December 31, 2022 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.42% at December 31, 2022, compared to 14.26% at September 30, 2022 and 14.23% at December 31, 2021. The ratio of Tier 1 capital to average assets was 9.34% at December 31, 2022, compared to 9.14% at September 30, 2022 and 8.72% at December 31, 2021.

 

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; estimated GDP growth and inflation trends; our ability to attract and retain deposits and access other sources of liquidity; the impact of the interest rate and inflationary environment on the Company’s business, financial condition and results of operations; 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 SEC rule making, The Dodd-Frank Act, Basel III, 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 such as the war in the Ukraine, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; public health crises and pandemics, including the COVID-19 pandemic, and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity threats and the cost of defending against them; 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  12/31/2022  12/31/2021
      (Audited)
Cash and noninterest bearing balances due from banks  $18,572   $23,078 
Interest bearing balances due from banks   59,265    40,029 
Cash and Cash Equivalents   77,837    63,107 
           
Available-for-sale debt securities, at fair value (amortized cost of $1,831,791 at December 31, 2022 and $2,063,790 at December 31, 2021)   1,594,967    2,044,513 
Held-to-maturity securities, at amortized cost (fair value of $261,692 at December 31, 2022 and $282,288 at December 31, 2021)   312,344    284,009 
Equity securities, at fair value (amortized cost $777 at December 31, 2022 and $902 at December 31, 2021)   777    902 
Total loans and leases, net of unearned income and deferred costs and fees   5,268,911    5,075,467 
Less: Allowance for credit losses   45,934    42,843 
Net Loans and Leases   5,222,977    5,032,624 
           
Federal Home Loan Bank and other stock   17,720    10,996 
Bank premises and equipment, net   82,140    85,416 
Corporate owned life insurance   85,556    86,495 
Goodwill   92,602    92,447 
Other intangible assets, net   2,708    3,643 
Accrued interest and other assets   181,058    115,830 
Total Assets  $7,670,686   $7,819,982 
LIABILITIES          
Deposits:          
Interest bearing:          
Checking, savings and money market   3,820,739    4,016,025 
Time   631,411    639,674 
Noninterest bearing   2,150,145    2,135,736 
Total Deposits   6,602,295    6,791,435 
           
Federal funds purchased and securities sold under agreements to repurchase   56,278    66,787 
Other borrowings   291,300    124,000 
Other liabilities   103,423    108,819 
Total Liabilities  $7,053,296   $7,091,041 
EQUITY          
Tompkins Financial Corporation shareholders’ equity:          
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,555,741  at December 31, 2022; and 14,696,911 at December 31, 2021   1,456    1,470 
Additional paid-in capital   302,763    312,538 
Retained earnings   526,727    475,262 
Accumulated other comprehensive loss   (208,689)   (55,950)
Treasury stock, at cost – 128,749 shares at December 31, 2022, and 122,824 shares at December 31, 2021   (6,279)   (5,791)
Total Tompkins Financial Corporation Shareholders’ Equity   615,978    727,529 
Noncontrolling interests   1,412    1,412 
Total Equity  $617,390   $728,941 
Total Liabilities and Equity  $7,670,686   $7,819,982 
           

 

  

 

 

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME    

 

(In thousands, except per share data) (Unaudited)  Three Months Ended  Year Ended
    12/31/2022    12/31/2021    12/31/2022    12/31/2021 
INTEREST AND DIVIDEND INCOME                    
Loans  $58,930   $53,086   $217,607   $214,684 
Due from banks   181    77    371    343 
Available-for-sale debt securities   6,939    6,252    27,929    23,440 
Held-to-maturity securities   1,221    1,031    4,771    2,075 
Federal Home Loan Bank and other stock   254    168    646    776 
Total Interest and Dividend Income   67,525   $60,614   $251,324   $241,318 
INTEREST EXPENSE                    
Time certificates of deposits of $250,000 or more   909    478    2,298    2,202 
Other deposits   6,973    1,810    13,870    8,645 
Federal funds purchased and securities sold under agreements to repurchase   14    16    60    64 
Trust preferred debentures   0    0    0    2,233 
Other borrowings   2,335    499    4,815    4,382 
Total Interest Expense   10,231    2,803    21,043    17,526 
Net Interest Income   57,294    57,811    230,281    223,792 
Less: Provision (credit) for credit loss expense   1,397    3,914    2,789    (2,219)
Net Interest Income After Credit for Credit Loss Expense   55,897    53,897    227,492    226,011 
NONINTEREST INCOME                    
Insurance commissions and fees   7,630    7,783    36,201    34,836 
Wealth management fees   4,241    5,041    18,091    19,388 
Service charges on deposit accounts   1,913    1,768    7,365    6,347 
Card services income   2,791    2,775    11,024    10,826 
Other income   2,231    1,795    5,925    7,203 
Net (loss) gain on securities transactions   (455)   (8)   (634)   249 
Total Noninterest Income   18,351    19,154    77,972    78,849 
NONINTEREST EXPENSE                    
Salaries and wages   25,249    24,561    98,261    96,038 
Other employee benefits   6,342    6,285    24,969    24,172 
Net occupancy expense of premises   3,163    3,137    13,093    13,179 
Furniture and fixture expense   2,007    2,108    8,058    8,328 
Amortization of intangible assets   218    329    873    1,317 
Other operating expense   13,211    11,734    50,497    47,253 
Total Noninterest Expenses   50,190    48,154    195,751    190,287 
Income Before Income Tax Expense   24,058    24,897    109,713    114,573 
Income Tax Expense   4,478    5,401    24,557    25,182 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation   19,580    19,496    85,156    89,391 
Less: Net Income Attributable to Noncontrolling Interests   32    31    126    127 
Net Income Attributable to Tompkins Financial Corporation  $19,548    19,465    85,030    89,264 
Basic Earnings Per Share  $1.36   $1.34   $5.92   $6.08 
Diluted Earnings Per Share  $1.36   $1.33   $5.89   $6.05 

 

  

 

 

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

 

   Quarter Ended  Quarter Ended
   December 31, 2022  December 31, 2021
   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  $58,488   $181    1.23%  $228,570   $77    0.13%
Securities (1)                              
U.S. Government securities   2,186,858    7,627    1.38%   2,248,954    6,728    1.19%
State and municipal (2)   94,377    608    2.56%   105,215    672    2.53%
Other securities (2)   3,270    47    5.68%   3,407    23    2.64%
Total securities   2,284,505    8,282    1.44%   2,357,576    7,423    1.25%
FHLBNY and FRB stock   15,942    255    6.33%   10,382    168    6.42%
Total loans and leases, net of unearned income (2)(3)   5,209,721    59,140    4.50%   5,064,028    53,354    4.18%
Total interest-earning assets   7,568,656    67,858    3.56%   7,660,556    61,022    3.16%
Other assets   152,679              333,260           
Total assets  $7,721,335             $7,993,816           
LIABILITIES & EQUITY                              
Deposits                              
Interest-bearing deposits                              
Interest bearing checking, savings, & money market  $3,905,570   $5,888    0.60%  $4,130,652   $793    0.08%
Time deposits   615,493    1,994    1.28%   663,713    1,495    0.89%
Total interest-bearing deposits   4,521,063    7,882    0.69%   4,794,365    2,288    0.19%
Federal funds purchased & securities sold under agreements to repurchase   55,701    14    0.10%   61,976    16    0.11%
Other borrowings   251,797    2,335    3.68%   110,370    499    1.79%
Trust preferred debentures   0    0    0.00%   0    0    0.00%
Total interest-bearing liabilities   4,828,561    10,231    0.84%   4,966,711    2,803    0.22%
Noninterest bearing deposits   2,196,992              2,185,489           
Accrued expenses and other liabilities   115,063              118,997           
Total liabilities   7,140,615              7,271,197           
Tompkins Financial Corporation Shareholders’ equity   579,223              721,123           
Noncontrolling interest   1,497              1,496           
Total equity   580,720              722,619           
                               
Total liabilities and equity  $7,721,335             $7,993,816           
Interest rate spread             2.72%             2.94%
Net interest income/margin on earning assets        57,627    3.02%        58,219    3.01%
                               
Tax Equivalent Adjustment        (333)             (408)     
Net interest income per consolidated financial statements       $57,294             $57,811      

 

  

 

 

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

 

   Year to Date Period Ended  Year to Date Period Ended
   December 31, 2022  December 31, 2021
   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  $85,788   $371    0.43%  $307,253   $343    0.11%
Securities (1)                              
U.S. Government securities   2,265,226    30,587    1.35%   2,003,450    23,145    1.16%
State and municipal (2)   97,283    2,490    2.56%   112,391    2,871    2.55%
Other securities (2)   3,329    135    4.06%   3,417    92    2.68%
Total securities   2,365,838    33,212    1.40%   2,119,258    26,108    1.23%
FHLBNY and FRB stock   13,354    646    4.84%   14,830    776    5.24%
Total loans and leases, net of unearned income (2)(3)   5,142,098    218,494    4.25%   5,184,491    215,709    4.16%
Total interest-earning assets   7,607,078    252,723    3.32%   7,625,832    242,936    3.19%
Other assets   221,442              343,119           
Total assets  $7,828,520             $7,968,951           
LIABILITIES & EQUITY                              
Deposits                              
Interest-bearing deposits                              
Interest bearing checking, savings, & money market  $4,029,008   $10,389    0.26%  $4,034,969   $3,736    0.09%
Time deposits   611,708    5,779    0.94%   711,381    7,111    1.00%
Total interest-bearing deposits   4,640,716    16,168    0.35%   4,746,350    10,847    0.23%
Federal funds purchased & securities sold under agreements to repurchase   57,126    60    0.10%   58,627    64    0.11%
Other borrowings   195,110    4,815    2.47%   217,799    4,382    2.01%
Trust preferred debentures   0    0    0.00%   7,367    2,233    30.32%
Total interest-bearing liabilities   4,892,952    21,043    0.43%   5,030,143    17,526    0.35%
Noninterest bearing deposits   2,186,720              2,096,542           
Accrued expenses and other liabilities   107,122              117,790           
Total liabilities   7,186,794              7,244,475           
Tompkins Financial Corporation Shareholders’ equity   640,258              723,009           
Noncontrolling interest   1,468              1,467           
Total equity   641,726              724,476           
                               
Total liabilities and equity  $7,828,520             $7,968,951           
Interest rate spread             2.89%             2.84%
Net interest income/margin on earning assets        231,680    3.05%        225,410    2.96%
                               
Tax Equivalent Adjustment        (1,399)             (1,618)     
Net interest income per consolidated financial statements       $230,281             $223,792      

 

  

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)            

   Quarter-Ended  Year-Ended
Period End Balance Sheet  Dec-22  Sep-22  Jun-22  Mar-22  Dec-21  Dec-22
Securities  $1,908,088   $2,054,036   $2,204,851   $2,285,527   $2,329,424   $1,908,088 
Total Loans   5,268,911    5,208,436    5,162,503    5,063,451    5,075,467    5,268,911 
Allowance for credit losses   45,934    44,772    43,793    42,126    42,843    45,934 
Total assets   7,670,686    7,779,941    7,842,461    7,891,111    7,819,982    7,670,686 
Total deposits   6,602,295    6,936,726    6,769,521    7,016,739    6,791,435    6,602,295 
Federal funds purchased and securities sold under agreements to repurchase   56,278    55,340    50,075    57,115    66,787    56,278 
Other borrowings   291,300    101,000    295,600    60,000    124,000    291,300 
Trust preferred debentures   0    0    0    0    0    0 
Total common equity   615,978    571,453    622,843    656,049    727,529    615,978 
Total equity   617,390    572,959    624,318    657,492    728,941    617,390 
Average Balance Sheet                              
Average earning assets  $7,568,656   $7,639,123   $7,621,588   $7,598,922   $7,660,556   $7,607,078 
Average assets   7,721,335    7,853,847    7,830,645    7,910,047    7,993,816    7,828,520 
Average interest-bearing liabilities   4,828,561    4,861,857    4,901,345    4,982,075    4,966,711    4,892,952 
Average equity   580,720    635,324    639,354    713,027    722,619    641,726 
Share data                              
Weighted average shares outstanding (basic)   14,308,323    14,289,022    14,317,415    14,400,003    14,452,775    14,328,280 
Weighted average shares outstanding (diluted)   14,385,884    14,367,149    14,387,601    14,478,183    14,532,480    14,404,294 
Period-end shares outstanding   14,519,831    14,483,757    14,504,604    14,561,450    14,661,001    14,519,831 
Common equity book value per share  $42.42   $39.45   $42.94   $45.05   $49.62   $42.42 
Income Statement                              
Net interest income  $57,294   $58,111   $58,262   $56,614   $57,811   $230,281 
Provision (credit) for credit loss expense (5)   1,397    1,056    856    (520)   3,914    2,789 
Noninterest income   18,351    20,692    18,944    19,985    19,154    77,972 
Noninterest expense (5)   50,190    49,602    49,120    46,839    48,154    195,751 
Income tax expense   4,478    6,774    6,329    6,976    5,401    24,557 
Net income attributable to Tompkins Financial Corporation   19,548    21,340    20,869    23,273    19,465    85,030 
Noncontrolling interests   32    31    32    31    31    126 
Basic earnings per share (4)   1.36    1.49    1.45    1.61    1.34    5.92 
Diluted earnings per share (4)   1.36    1.48    1.45    1.60    1.33    5.89 
Nonperforming Assets                              
Nonaccrual loans and leases  $28,289   $30,013   $24,665   $25,200   $26,033   $28,290 
Loans and leases 90 days past due and accruing   25    161    62    0    0    25 
Troubled debt restructuring not included above   4,530    4,730    4,872    5,064    5,124    4,530 
Total nonperforming loans and leases   32,844    34,904    29,599    30,264    31,157    32,845 
OREO   152    335    122    88    135    152 
Total nonperforming assets  $32,996   $35,239   $29,721   $30,352   $31,292   $32,997 

  

 

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

   Quarter-Ended  Year-Ended
Delinquency - Total loan and lease portfolio   Dec-22    Sep-22    Jun-22    Mar-22    Dec-21    Dec-22 
Loans and leases 30-89 days past due and                              
accruing  $3,172   $3,160   $9,837   $1,735   $3,072   $3,172 
Loans and leases 90 days past due and accruing   25    161    62    0    0    25 
Total loans and leases past due and accruing   3,197    3,321    9,899    1,735    3,072    3,197 
Allowance for Credit Losses
Balance at beginning of period  $44,772   $43,793   $42,126   $42,843   $46,259   $42,843 
Provision (credit) for credit losses   1,352    1,101    780    (734)   3,600   $2,499 
Net loan and lease charge-offs (recoveries)   190    122    (887)   (17)   7,016   $(592)
Allowance for credit losses at end of period  $45,934   $44,772   $43,793   $42,126   $42,843   $45,934 
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period  $2,751   $2,796   $2,720   $2,506   $2,192   $2,506 
(Credit) provision for credit losses   45    (45)   76    214    314   $290 
Allowance for credit losses at end of period  $2,796   $2,751   $2,796   $2,720   $2,506   $2,796 
Loan Classification - Total Portfolio                              
Special Mention  $49,752   $66,730   $72,270   $92,380   $85,530   $49,752 
Substandard   48,537    40,007    42,756    42,722    52,047    48,537 
Ratio Analysis                              
Credit Quality                              
Nonperforming loans and leases/total loans and leases   0.62%   0.67%   0.57%   0.60%   0.61%   0.62%
Nonperforming assets/total assets   0.43%   0.45%   0.38%   0.38%   0.40%   0.43%
Allowance for credit losses/total loans and leases   0.87%   0.86%   0.85%   0.83%   0.84%   0.87%
Allowance/nonperforming loans and leases   139.86%   128.27%   147.95%   139.20%   137.51%   139.85%
Net loan and lease losses annualized/total average loans and leases   0.01%   0.01%   (0.07)%   0.00%   0.55%   (0.01)%
Capital Adequacy                              
Tier 1 Capital (to average assets)   9.34%   9.14%   9.02%   8.89%   8.72%   9.34%
Total Capital (to risk-weighted assets)   14.42%   14.26%   14.07%   14.23%   14.23%   14.42%
Profitability (period-end)                              
Return on average assets *   1.00%   1.08%   1.07%   1.19%   0.97%   1.09%
Return on average equity *   13.36%   13.33%   13.09%   13.24%   10.69%   13.25%
Net interest margin (TE) *   3.02%   3.04%   3.09%   3.04%   3.01%   3.05%
* 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 2022 and 2021 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.