Tompkins Financial Corporation Reports First Quarter Financial Results
Tompkins Financial reported diluted earnings per share of $1.18 for the first quarter of 2024, up 12.4% from the prior quarter and down 12.6% from the same period in 2023. Net income was $16.9 million, showing a 12.5% increase from the prior quarter but a 13.0% decrease from 2023. The decrease in net income was driven by higher funding costs and credit loss expenses. Despite this, there was growth in fee-based revenues and lower operating expenses. The company remains focused on customer relationships and leveraging its strong balance sheet for growth.
Key highlights include a decrease in net interest margin and an increase in deposit costs. Fee-based revenues were up, operating expenses were down, and loans and deposits showed growth. The company's net interest income decreased due to higher interest expenses, while noninterest income saw an 8.5% increase. The provision for income tax expense increased, and the asset quality remained stable. Capital ratios were well above regulatory minimums, and liquidity position was stable with access to various funding sources.
- Net interest margin decreased, while deposit costs increased.
- Fee-based revenues and noninterest income showed growth.
- Operating expenses decreased, and loans and deposits increased.
- Net interest income decreased due to higher interest expenses.
- Capital ratios remained above regulatory minimums.
- Liquidity position was stable with access to various funding sources.
- Decrease in net income compared to the same period in 2023.
- Higher funding costs and credit loss expenses impacted net income.
- Decrease in net interest margin and increase in deposit costs.
- Provision for income tax expense increased.
- Nonperforming assets increased compared to the prior year.
- Net charge-offs were reported for the first quarter of 2024.
Insights
The disclosed first quarter financial results of Tompkins Financial Corporation show a mixed performance, marked by a 12.4% increase in diluted earnings per share from the previous quarter and a simultaneous 12.6% decrease from the same period last year. The reduction in year-over-year net income is attributed to higher funding costs and an increased provision for credit loss expense, signaling a potentially riskier credit environment. In contrast, a noted 7.0% year-over-year loan growth and 8.5% growth in noninterest income from fee-based services hint at a resilient revenue-generating capacity, which investors typically view positively.
Despite the dip in net income, operational efficiencies are evident, with a reported 2.8% reduction in total operating expenses from the previous quarter. The economic climate and competitive rates for deposits, however, have led to a tighter net interest margin of 2.73%, down from 2.99% in the previous year. This contraction suggests a challenging interest rate environment and may impact future profitability.
Overall, while the capital ratios remain above regulatory minimums, signaling a stable capital position, the lower ratios compared to last year, along with increased nonperforming loans, could be points of concern for investors. These factors should be considered within the broader context of current economic trends and interest rate forecasts when assessing the company's financial health and stock performance.
From a risk management perspective, the report highlights some areas that require attention. The provision for credit losses has increased, which is commonly a forward-looking indicator of expected loan defaults. This must be juxtaposed with the increase in nonperforming loans and leases, suggesting potential deterioration in asset quality, a critical factor in evaluating a bank's risk profile.
Moreover, the decrease in the allowance to nonperforming loans ratio from 162.11% to 82.47% year-over-year is significant, as it may imply lesser coverage for potential losses. This underlines a significant shift in the company's credit risk landscape within a year, which stakeholders should monitor closely. The reported stability in the company's liquidity position, including access to various wholesale funding sources, is a positive note, suggesting that the company could navigate short-term liquidity constraints effectively.
For stakeholders with an interest in the composition and performance of the investment portfolio, the reported 30.4% of total revenue stemming from noninterest income including fees from insurance, wealth management and card services is noteworthy. This diversification away from traditional interest income can be indicative of a strategic shift towards fee-based revenue streams, which might be less sensitive to interest rate fluctuations. The expansion in noninterest income contributes to revenue stability and can be a strategic advantage in a challenging interest rate environment.
Additionally, the presence of $579.6 million in unencumbered securities enhances the company's financial flexibility. In volatile markets, this liquidity reserve can be important for managing potential balance sheet stress and pursuing growth opportunities.
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of
Net income for the first quarter of 2024 was
Tompkins President and CEO, Stephen Romaine, commented, "In the first quarter we saw positive earnings momentum and continue to be well positioned with strong capital and liquidity. For the quarter we saw continued loan growth with a year-over-year increase of
SELECTED HIGHLIGHTS FOR THE PERIOD:
-
Net interest margin for the first quarter of 2024 was
2.73% , compared to2.82% for the fourth quarter of 2023, and2.99% for the first quarter of 2023. - Average cost of deposits were up 11 basis points compared to the fourth quarter 2023, down from a 23 basis point increase from the third quarter to the fourth quarter 2023.
-
Fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the first quarter of 2024 were up
$3.1 million 18.4% compared to the fourth quarter of 2023, and$1.5 million 8.1% over the first quarter of 2023. -
Total operating expenses of
$49.9 million $1.4 million 2.8% compared to the compared to the fourth quarter of 2023, and$301,000 0.6% from the first quarter of 2023. -
Total loans at March 31, 2024 were up
$34.6 million 0.6% (2.5% on an annualized basis), compared to the immediate prior quarter, and up$366.9 million 7.0% , from March 31, 2023. -
Total deposits at March 31, 2024 were
$6.4 billion $49.8 million 0.8% (3.1% on an annualized basis), from December 31, 2023, and down$59.4 million 0.9% , from March 31, 2023. -
Loan to deposit ratio was
87.5% , compared to87.6% for the immediate prior quarter. -
Regulatory Tier 1 capital to average assets was
9.08% at March 31, 2024, unchanged from December 31, 2023, and down compared to9.63% at March 31, 2023.
NET INTEREST INCOME
Net interest income was
Net interest margin was
Average loans for the quarter ended March 31, 2024 were up
Average total deposits for the first quarter of 2024 were down
NONINTEREST INCOME
Noninterest income of
NONINTEREST EXPENSE
Noninterest expense was
INCOME TAX EXPENSE
The provision for income tax expense of
ASSET QUALITY
The allowance for credit losses represented
Provision for credit losses for the first quarter of 2024 was
Nonperforming assets represented
Special Mention and Substandard loans and leases totaled
CAPITAL POSITION
Capital ratios at March 31, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was
LIQUIDITY POSITION
The Company's liquidity position at March 31, 2024 was stable and consistent with the immediately prior quarter. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of
"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. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to nonperforming loans, and the strength of our balance sheet. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to 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 and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in 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; our ability to attract and retain deposits and other sources of liquidity; gross domestic product growth and inflation trends; 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, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; technological developments and changes; cybersecurity incidents and threats; 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; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact of national and global events, including the response to bank failures, the wars in
TOMPKINS FINANCIAL CORPORATION |
||||||
CONSOLIDATED STATEMENTS OF CONDITION |
||||||
(In thousands, except share and per share data) |
As of |
As of |
||||
ASSETS |
03/31/2024 |
12/31/2023 |
||||
|
|
(Audited) |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
47,236 |
|
$ |
67,212 |
|
Interest bearing balances due from banks |
|
9,905 |
|
|
12,330 |
|
Cash and Cash Equivalents |
|
57,141 |
|
|
79,542 |
|
|
|
|
||||
Available-for-sale debt securities, at fair value (amortized cost of |
|
1,366,355 |
|
|
1,416,650 |
|
Held-to-maturity debt securities, at amortized cost (fair value of |
|
312,415 |
|
|
312,401 |
|
Equity securities, at fair value |
|
772 |
|
|
787 |
|
Total loans and leases, net of unearned income and deferred costs and fees |
|
5,640,524 |
|
|
5,605,935 |
|
Less: Allowance for credit losses |
|
51,704 |
|
|
51,584 |
|
Net Loans and Leases |
|
5,588,820 |
|
|
5,554,351 |
|
|
|
|
||||
Federal Home Loan Bank and other stock |
|
30,103 |
|
|
33,719 |
|
Bank premises and equipment, net |
|
78,158 |
|
|
79,687 |
|
Corporate owned life insurance |
|
74,730 |
|
|
67,884 |
|
Goodwill |
|
92,602 |
|
|
92,602 |
|
Other intangible assets, net |
|
2,247 |
|
|
2,327 |
|
Accrued interest and other assets |
|
174,691 |
|
|
179,799 |
|
Total Assets |
$ |
7,778,034 |
|
$ |
7,819,749 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
|
3,646,960 |
|
|
3,484,878 |
|
Time |
|
974,354 |
|
|
998,013 |
|
Noninterest bearing |
|
1,828,302 |
|
|
1,916,956 |
|
Total Deposits |
|
6,449,616 |
|
|
6,399,847 |
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
|
43,681 |
|
|
50,996 |
|
Other borrowings |
|
522,600 |
|
|
602,100 |
|
Other liabilities |
|
92,799 |
|
|
96,872 |
|
Total Liabilities |
$ |
7,108,696 |
|
$ |
7,149,815 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value |
|
1,444 |
|
|
1,444 |
|
Additional paid-in capital |
|
297,790 |
|
|
297,183 |
|
Retained earnings |
|
509,668 |
|
|
501,510 |
|
Accumulated other comprehensive loss |
|
(134,816 |
) |
|
(125,005 |
) |
Treasury stock, at cost – 123,577 shares at March 31, 2024, and 132,097 shares at December 31, 2023 |
|
(6,180 |
) |
|
(6,610 |
) |
Total Tompkins Financial Corporation Shareholders’ Equity |
|
667,906 |
|
|
668,522 |
|
Noncontrolling interests |
|
1,432 |
|
|
1,412 |
|
Total Equity |
$ |
669,338 |
|
$ |
669,934 |
|
Total Liabilities and Equity |
$ |
7,778,034 |
|
$ |
7,819,749 |
|
|
|
|
||||
TOMPKINS FINANCIAL CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
|||||||
|
03/31/2024 |
12/31/2023 |
03/31/2023 |
|||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|||||
Loans |
$ |
71,599 |
|
$ |
69,035 |
$ |
60,842 |
|
Due from banks |
|
154 |
|
|
227 |
|
139 |
|
Available-for-sale debt securities |
|
9,611 |
|
|
9,717 |
|
6,743 |
|
Held-to-maturity debt securities |
|
1,218 |
|
|
1,222 |
|
1,214 |
|
Federal Home Loan Bank and other stock |
|
601 |
|
|
584 |
|
300 |
|
Total Interest and Dividend Income |
|
83,183 |
|
$ |
80,785 |
$ |
69,238 |
|
INTEREST EXPENSE |
|
|
|
|||||
Time certificates of deposits of |
|
4,010 |
|
|
3,949 |
|
1,788 |
|
Other deposits |
|
20,424 |
|
|
19,526 |
|
10,394 |
|
Federal funds purchased and securities sold under agreements to repurchase |
|
13 |
|
|
14 |
|
14 |
|
Other borrowings |
|
8,061 |
|
|
4,937 |
|
2,796 |
|
Total Interest Expense |
|
32,508 |
|
|
28,426 |
|
14,992 |
|
Net Interest Income |
|
50,675 |
|
|
52,359 |
|
54,246 |
|
Less: Provision (credit) for credit loss expense |
|
854 |
|
|
1,761 |
|
(825 |
) |
Net Interest Income After Provision (credit) for Credit Loss Expense |
|
49,821 |
|
|
50,598 |
|
55,071 |
|
NONINTEREST INCOME |
|
|
|
|||||
Insurance commissions and fees |
|
10,259 |
|
|
7,773 |
|
9,509 |
|
Wealth management fees |
|
4,937 |
|
|
4,422 |
|
4,509 |
|
Service charges on deposit accounts |
|
1,796 |
|
|
1,773 |
|
1,746 |
|
Card services income |
|
2,939 |
|
|
2,859 |
|
2,682 |
|
Other income |
|
2,220 |
|
|
1,977 |
|
1,941 |
|
Net (loss) gain on securities transactions |
|
(14 |
) |
|
46 |
|
13 |
|
Total Noninterest Income |
|
22,137 |
|
|
18,850 |
|
20,400 |
|
NONINTEREST EXPENSE |
|
|
|
|||||
Salaries and wages |
|
24,697 |
|
|
23,710 |
|
24,512 |
|
Other employee benefits |
|
6,411 |
|
|
6,626 |
|
6,741 |
|
Net occupancy expense of premises |
|
3,557 |
|
|
3,544 |
|
3,299 |
|
Furniture and fixture expense |
|
2,125 |
|
|
2,425 |
|
2,054 |
|
Amortization of intangible assets |
|
76 |
|
|
84 |
|
83 |
|
Other operating expense |
|
12,991 |
|
|
14,911 |
|
13,469 |
|
Total Noninterest Expenses |
|
49,857 |
|
|
51,300 |
|
50,158 |
|
Income Before Income Tax Expense |
|
22,101 |
|
|
18,148 |
|
25,313 |
|
Income Tax Expense |
|
5,198 |
|
|
3,114 |
|
5,901 |
|
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
|
16,903 |
|
|
15,034 |
|
19,412 |
|
Less: Net Income Attributable to Noncontrolling Interests |
|
31 |
|
|
31 |
|
31 |
|
Net Income Attributable to Tompkins Financial Corporation |
$ |
16,872 |
|
|
15,003 |
|
19,381 |
|
Basic Earnings Per Share |
$ |
1.19 |
|
$ |
1.06 |
$ |
1.35 |
|
Diluted Earnings Per Share |
$ |
1.18 |
|
$ |
1.05 |
$ |
1.35 |
|
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||
|
March 31, 2024 |
December 31, 2023 |
||||||||||||
|
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 |
$ |
12,202 |
$ |
154 |
|
5.08 |
% |
$ |
14,351 |
$ |
227 |
|
6.28 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
|
|
1,756,122 |
|
10,303 |
|
2.36 |
% |
|
1,789,043 |
|
10,411 |
|
2.31 |
% |
State and municipal (2) |
|
89,886 |
|
570 |
|
2.55 |
% |
|
90,070 |
|
574 |
|
2.53 |
% |
Other securities |
|
3,278 |
|
60 |
|
7.32 |
% |
|
3,242 |
|
60 |
|
7.37 |
% |
Total securities |
|
1,849,286 |
|
10,933 |
|
2.38 |
% |
|
1,882,355 |
|
11,045 |
|
2.33 |
% |
FHLBNY and FRB stock |
|
34,613 |
|
601 |
|
6.99 |
% |
|
24,555 |
|
584 |
|
9.44 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,621,604 |
|
71,779 |
|
5.14 |
% |
|
5,486,715 |
|
69,197 |
|
5.00 |
% |
Total interest-earning assets |
|
7,517,705 |
|
83,467 |
|
4.47 |
% |
|
7,407,976 |
|
81,053 |
|
4.34 |
% |
Other assets |
|
283,420 |
|
|
|
259,006 |
|
|
||||||
Total assets |
$ |
7,801,125 |
|
|
$ |
7,666,982 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
|
3,546,216 |
|
15,036 |
|
1.71 |
% |
|
3,643,919 |
|
14,915 |
|
1.62 |
% |
Time deposits |
|
988,891 |
|
9,398 |
|
3.82 |
% |
|
925,790 |
|
8,560 |
|
3.67 |
% |
Total interest-bearing deposits |
|
4,535,107 |
|
24,434 |
|
2.17 |
% |
|
4,569,709 |
|
23,475 |
|
2.04 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
48,779 |
|
13 |
|
0.10 |
% |
|
51,903 |
|
14 |
|
0.10 |
% |
Other borrowings |
|
622,951 |
|
8,061 |
|
5.21 |
% |
|
398,932 |
|
4,937 |
|
4.91 |
% |
Total interest-bearing liabilities |
|
5,206,836 |
|
32,508 |
|
2.51 |
% |
|
5,020,544 |
|
28,426 |
|
2.25 |
% |
Noninterest bearing deposits |
|
1,831,244 |
|
|
|
1,920,510 |
|
|
||||||
Accrued expenses and other liabilities |
|
96,292 |
|
|
|
103,648 |
|
|
||||||
Total liabilities |
|
7,134,373 |
|
|
|
7,044,702 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
665,333 |
|
|
|
620,789 |
|
|
||||||
Noncontrolling interest |
|
1,419 |
|
|
|
1,491 |
|
|
||||||
Total equity |
|
666,752 |
|
|
|
622,280 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,801,125 |
|
|
$ |
7,666,982 |
|
|
||||||
Interest rate spread |
|
|
1.95 |
% |
|
|
2.09 |
% |
||||||
Net interest income/margin on earning assets |
|
|
50,959 |
|
2.73 |
% |
|
|
52,627 |
|
2.82 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(284 |
) |
|
|
|
(268 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
50,675 |
|
|
|
$ |
52,359 |
|
|
||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||
|
March 31, 2024 |
March 31, 2023 |
||||||||||||
|
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 |
$ |
12,202 |
$ |
154 |
|
5.08 |
% |
$ |
12,733 |
$ |
139 |
|
4.42 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
|
|
1,756,122 |
|
10,303 |
|
2.36 |
% |
|
2,033,307 |
|
7,424 |
|
1.48 |
% |
State and municipal (2) |
|
89,886 |
|
570 |
|
2.55 |
% |
|
93,201 |
|
599 |
|
2.60 |
% |
Other securities |
|
3,278 |
|
60 |
|
7.32 |
% |
|
3,284 |
|
53 |
|
6.55 |
% |
Total securities |
|
1,849,286 |
|
10,933 |
|
2.38 |
% |
|
2,129,792 |
|
8,076 |
|
1.54 |
% |
FHLBNY and FRB stock |
|
34,613 |
|
601 |
|
6.99 |
% |
|
16,750 |
|
300 |
|
7.26 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,621,604 |
|
71,779 |
|
5.14 |
% |
|
5,251,278 |
|
61,034 |
|
4.71 |
% |
Total interest-earning assets |
|
7,517,705 |
|
83,467 |
|
4.47 |
% |
|
7,410,553 |
|
69,549 |
|
3.81 |
% |
Other assets |
|
283,420 |
|
|
|
223,240 |
|
|
||||||
Total assets |
$ |
7,801,125 |
|
|
$ |
7,633,793 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
$ |
3,546,216 |
$ |
15,036 |
|
1.71 |
% |
$ |
3,833,566 |
$ |
8,641 |
|
0.91 |
% |
Time deposits |
|
988,891 |
|
9,398 |
|
3.82 |
% |
|
673,871 |
|
3,541 |
|
2.13 |
% |
Total interest-bearing deposits |
|
4,535,107 |
|
24,434 |
|
2.17 |
% |
|
4,507,437 |
|
12,182 |
|
1.10 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
48,779 |
|
13 |
|
0.10 |
% |
|
57,523 |
|
14 |
|
0.10 |
% |
Other borrowings |
|
622,951 |
|
8,061 |
|
5.21 |
% |
|
269,752 |
|
2,796 |
|
4.20 |
% |
Total interest-bearing liabilities |
|
5,206,836 |
|
32,508 |
|
2.51 |
% |
|
4,834,712 |
|
14,992 |
|
1.26 |
% |
Noninterest bearing deposits |
|
1,831,244 |
|
|
|
2,065,701 |
|
|
||||||
Accrued expenses and other liabilities |
|
96,292 |
|
|
|
102,172 |
|
|
||||||
Total liabilities |
|
7,134,373 |
|
|
|
7,002,585 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
665,333 |
|
|
|
629,784 |
|
|
||||||
Noncontrolling interest |
|
1,419 |
|
|
|
1,424 |
|
|
||||||
Total equity |
|
666,752 |
|
|
|
631,208 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,801,125 |
|
|
$ |
7,633,793 |
|
|
||||||
Interest rate spread |
|
|
1.95 |
% |
|
|
2.55 |
% |
||||||
Net interest income/margin on earning assets |
|
|
50,959 |
|
2.73 |
% |
|
|
54,557 |
|
2.99 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(284 |
) |
|
|
|
(311 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
50,675 |
|
|
|
$ |
54,246 |
|
|
||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Period End Balance Sheet |
Mar-24 |
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-23 |
||||||
Securities |
$ |
1,679,542 |
$ |
1,729,838 |
$ |
1,701,636 |
$ |
1,781,150 |
$ |
1,899,001 |
$ |
1,729,838 |
Total Loans |
|
5,640,524 |
|
5,605,935 |
|
5,434,860 |
|
5,352,365 |
|
5,273,671 |
|
5,605,935 |
Allowance for credit losses |
|
51,704 |
|
51,584 |
|
49,336 |
|
48,545 |
|
46,099 |
|
51,584 |
Total assets |
|
7,778,034 |
|
7,819,749 |
|
7,691,162 |
|
7,626,238 |
|
7,644,371 |
|
7,819,749 |
Total deposits |
|
6,449,616 |
|
6,399,847 |
|
6,623,436 |
|
6,454,651 |
|
6,509,009 |
|
6,399,847 |
Federal funds purchased and securities sold under agreements to repurchase |
|
43,681 |
|
50,996 |
|
56,120 |
|
50,483 |
|
63,491 |
|
50,996 |
Other borrowings |
|
522,600 |
|
602,100 |
|
296,800 |
|
387,100 |
|
327,000 |
|
602,100 |
Total common equity |
|
667,906 |
|
668,522 |
|
610,851 |
|
634,967 |
|
648,322 |
|
668,522 |
Total equity |
|
669,338 |
|
669,934 |
|
612,356 |
|
636,441 |
|
649,765 |
|
669,934 |
Average Balance Sheet |
|
|
|
|
|
|
||||||
Average earning assets |
$ |
7,517,705 |
$ |
7,407,976 |
$ |
7,405,434 |
$ |
7,409,714 |
$ |
7,410,553 |
$ |
7,408,404 |
Average assets |
|
7,801,125 |
|
7,666,982 |
|
7,629,876 |
|
7,635,800 |
|
7,633,793 |
|
7,641,672 |
Average interest-bearing liabilities |
|
5,206,836 |
|
5,020,544 |
|
4,902,930 |
|
4,883,026 |
|
4,834,712 |
|
4,910,792 |
Average equity |
|
666,752 |
|
622,280 |
|
634,980 |
|
650,554 |
|
631,208 |
|
634,732 |
Share data |
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
|
14,211,910 |
|
14,194,503 |
|
14,185,763 |
|
14,314,133 |
|
14,326,595 |
|
14,254,661 |
Weighted average shares outstanding (diluted) |
|
14,238,357 |
|
14,246,024 |
|
14,224,748 |
|
14,346,787 |
|
14,389,673 |
|
14,301,221 |
Period-end shares outstanding |
|
14,405,019 |
|
14,405,920 |
|
14,350,177 |
|
14,405,503 |
|
14,519,748 |
|
14,405,920 |
Common equity book value per share |
$ |
46.37 |
$ |
46.41 |
$ |
42.57 |
$ |
44.08 |
$ |
44.65 |
$ |
46.41 |
Tangible book value per share (Non-GAAP)** |
$ |
39.85 |
$ |
39.88 |
$ |
36.01 |
$ |
37.54 |
$ |
38.16 |
$ |
39.88 |
**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP. |
||||||||||||
Income Statement |
|
|
|
|
|
|
||||||||
Net interest income |
$ |
50,675 |
$ |
52,359 |
$ |
51,013 |
|
$ |
51,896 |
$ |
54,246 |
|
$ |
209,514 |
Provision (credit) for credit loss expense (5) |
|
854 |
|
1,761 |
|
1,150 |
|
|
2,253 |
|
(825 |
) |
|
4,339 |
Noninterest income |
|
22,137 |
|
18,850 |
|
(41,624 |
) |
|
12,615 |
|
20,400 |
|
|
10,241 |
Noninterest expense (5) |
|
49,857 |
|
51,300 |
|
49,866 |
|
|
51,968 |
|
50,158 |
|
|
203,292 |
Income tax expense/(benefit) |
|
5,198 |
|
3,114 |
|
(8,304 |
) |
|
1,784 |
|
5,901 |
|
|
2,495 |
Net income/(loss) attributable to Tompkins Financial Corporation |
|
16,872 |
|
15,003 |
|
(33,354 |
) |
|
8,475 |
|
19,381 |
|
|
9,505 |
Noncontrolling interests |
|
31 |
|
31 |
|
31 |
|
|
31 |
|
31 |
|
|
124 |
Basic earnings (loss) per share (4) |
|
1.19 |
|
1.06 |
|
(2.35 |
) |
|
0.59 |
|
1.35 |
|
|
0.66 |
Diluted earnings (loss) per share (4) |
|
1.18 |
|
1.05 |
|
(2.35 |
) |
|
0.59 |
|
1.35 |
|
|
0.66 |
Nonperforming Assets |
|
|
|
|
|
|
||||||
Nonaccrual loans and leases |
$ |
62,544 |
$ |
62,165 |
$ |
31,381 |
$ |
31,333 |
$ |
28,424 |
$ |
62,165 |
Loans and leases 90 days past due and accruing |
|
151 |
|
101 |
|
52 |
|
34 |
|
13 |
|
101 |
Performing troubled debt restructuring* |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
|
0 |
Total nonperforming loans and leases |
|
62,695 |
|
62,266 |
|
31,433 |
|
31,367 |
|
28,437 |
|
62,266 |
OREO |
|
0 |
|
131 |
|
0 |
|
36 |
|
36 |
|
131 |
Total nonperforming assets |
$ |
62,695 |
$ |
62,397 |
$ |
31,433 |
$ |
31,403 |
$ |
28,473 |
$ |
62,397 |
*No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023. |
||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
|
Quarter-Ended |
Year-Ended |
||||||||||
Delinquency - Total loan and lease portfolio |
Mar-24 |
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-23 |
||||||
Loans and leases 30-89 days past due and accruing |
$ |
8,015 |
$ |
4,210 |
$ |
40,893 |
$ |
20,255 |
$ |
5,894 |
$ |
4,210 |
Loans and leases 90 days past due and accruing |
|
151 |
|
101 |
|
52 |
|
34 |
|
13 |
|
101 |
Total loans and leases past due and accruing |
|
8,166 |
|
4,311 |
|
40,945 |
|
20,289 |
|
5,907 |
|
4,311 |
| Allowance for Credit Losses | ||||||||||||||||
Balance at beginning of period |
$ |
51,584 |
$ |
49,336 |
|
$ |
48,545 |
$ |
46,099 |
|
$ |
45,934 |
|
$ |
45,934 |
|
Impact of adopting ASC 326 |
|
0 |
|
0 |
|
|
0 |
|
0 |
|
|
64 |
|
|
64 |
|
Provision (credit) for credit losses |
|
348 |
|
2,658 |
|
|
968 |
|
2,419 |
|
|
(1,180 |
) |
$ |
4,865 |
|
Net loan and lease charge-offs (recoveries) |
|
228 |
|
410 |
|
|
177 |
|
(27 |
) |
|
(1,281 |
) |
$ |
(721 |
) |
Allowance for credit losses at end of period |
$ |
51,704 |
$ |
51,584 |
|
$ |
49,336 |
$ |
48,545 |
|
$ |
46,099 |
|
$ |
51,584 |
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
||||||||||||||||
Balance at beginning of period |
$ |
2,270 |
$ |
3,167 |
|
$ |
2,985 |
$ |
3,151 |
|
$ |
2,796 |
|
$ |
2,796 |
|
Provision (credit) for credit losses |
|
506 |
|
(897 |
) |
|
182 |
|
(166 |
) |
|
355 |
|
$ |
(526 |
) |
Allowance for credit losses at end of period |
$ |
2,776 |
$ |
2,270 |
|
$ |
3,167 |
$ |
2,985 |
|
$ |
3,151 |
|
$ |
2,270 |
|
Loan Classification - Total Portfolio |
|
|
|
|
|
|
||||||
Special Mention |
$ |
46,302 |
$ |
50,368 |
$ |
65,993 |
$ |
56,305 |
$ |
39,255 |
$ |
50,368 |
Substandard |
|
72,412 |
|
72,717 |
|
56,947 |
|
61,820 |
|
46,315 |
|
72,717 |
Ratio Analysis
Credit Quality |
|
|
|
|
|
|
||||||
Nonperforming loans and leases/total loans and leases |
1.11 |
% |
1.11 |
% |
0.58 |
% |
0.59 |
% |
0.54 |
% |
1.11 |
% |
Nonperforming assets/total assets |
0.81 |
% |
0.80 |
% |
0.41 |
% |
0.41 |
% |
0.37 |
% |
0.80 |
% |
Allowance for credit losses/total loans and leases |
0.92 |
% |
0.92 |
% |
0.91 |
% |
0.91 |
% |
0.87 |
% |
0.92 |
% |
Allowance/nonperforming loans and leases |
82.47 |
% |
82.84 |
% |
156.96 |
% |
154.76 |
% |
162.11 |
% |
82.84 |
% |
Net loan and lease losses (recoveries) annualized/total average loans and leases |
0.02 |
% |
0.03 |
% |
0.01 |
% |
0.00 |
% |
(0.10 |
)% |
(0.01 |
)% |
Capital Adequacy |
|
|
|
|
|
|
||||||
Tier 1 Capital (to average assets) |
9.08 |
% |
9.08 |
% |
9.01 |
% |
9.57 |
% |
9.63 |
% |
9.08 |
% |
Total Capital (to risk-weighted assets) |
13.43 |
% |
13.36 |
% |
13.46 |
% |
14.48 |
% |
14.62 |
% |
13.36 |
% |
Profitability (period-end) |
|
|
|
|
|
|
||||||
Return on average assets * |
0.87 |
% |
0.78 |
% |
(1.73 |
)% |
0.45 |
% |
1.03 |
% |
0.12 |
% |
Return on average equity * |
10.18 |
% |
9.56 |
% |
(20.84 |
)% |
5.22 |
% |
12.45 |
% |
1.50 |
% |
Net interest margin (TE) * |
2.73 |
% |
2.82 |
% |
2.75 |
% |
2.83 |
% |
2.99 |
% |
2.84 |
% |
Average yield on interest-earning assets* |
4.47 |
% |
4.34 |
% |
4.06 |
% |
3.91 |
% |
3.81 |
% |
4.03 |
% |
Average cost of deposits* |
1.54 |
% |
1.43 |
% |
1.20 |
% |
0.97 |
% |
0.75 |
% |
1.09 |
% |
Average cost of funds* |
1.86 |
% |
1.62 |
% |
1.41 |
% |
1.16 |
% |
0.88 |
% |
1.27 |
% |
* Quarterly ratios have been annualized |
||||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with
Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP) |
||||||||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
|
Mar-24 |
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-23 |
||||||
Total common equity |
$ |
667,906 |
$ |
668,522 |
$ |
610,851 |
$ |
634,967 |
$ |
648,322 |
$ |
668,522 |
Less: Goodwill and intangibles |
|
93,926 |
|
94,003 |
|
94,086 |
|
94,169 |
|
94,253 |
|
94,003 |
Tangible common equity (Non-GAAP) |
|
573,980 |
|
574,519 |
|
516,765 |
|
540,798 |
|
554,069 |
|
574,519 |
Ending shares outstanding |
|
14,405,019 |
|
14,405,920 |
|
14,350,177 |
|
14,405,503 |
|
14,519,748 |
|
14,405,920 |
Tangible book value per share (Non-GAAP) |
$ |
39.85 |
$ |
39.88 |
$ |
36.01 |
$ |
37.54 |
$ |
38.16 |
$ |
39.88 |
(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
(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, 2023.
(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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240426028481/en/
For more information:
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753
Source: Tompkins Financial Corporation
FAQ
What were Tompkins Financial 's diluted earnings per share for the first quarter of 2024?
How did Tompkins Financial 's net income in the first quarter of 2024 compare to the same period in 2023?
What was the impact on Tompkins Financial 's net income in the first quarter of 2024?
How did Tompkins Financial 's fee-based revenues perform in the first quarter of 2024?
What was the net interest income for Tompkins Financial in the first quarter of 2024?
