Tompkins Financial Corporation Reports Fourth Quarter Financial Results
- Net interest margin for the fourth quarter of 2023 expanded to 2.82%, with total loans up 6.4% from December 31, 2022.
- The company's liquidity position at December 31, 2023, was stable, with ready access to national and regional wholesale funding sources, including Federal funds purchased, repurchase agreements, brokered deposits, and Federal Reserve Bank Discount Window advances.
- Diluted earnings per share for the fourth quarter of 2023 were down 22.8% compared to the fourth quarter of 2022.
- Net income for the year ended December 31, 2023, decreased by $75.5 million compared to the year ended December 31, 2022.
- Noninterest income for the year ended December 31, 2023, decreased by $67.7 million compared to the same period in 2022.
Insights
The reported decrease in diluted earnings per share by 22.8% for Q4 2023 and the significant 88.8% drop for the year-end compared to the previous year indicate a substantial impact on Tompkins Financial Corporation's profitability. The increased funding costs and operating expenses, including branch closures and personnel-related charges, are clear contributors to this decline. The strategic sale of low-yielding securities and reinvestment into higher-yielding ones is a positive step towards improving securities revenue, which is reflected in the increased average yields on securities.
However, the decline in net income and the increased cost of interest-bearing deposits underscore the challenges posed by the current high-interest-rate environment. The expansion of net interest margin in Q4 2023 is a positive indicator, but the overall decrease in net interest income year-over-year highlights the pressure on the bank's core income-generating activities. The loan growth is strong, yet the decrease in total deposits suggests a competitive market for deposit acquisition.
The rise in noninterest expenses, particularly due to one-time costs associated with branch closures and increased FDIC expenses, may affect investor sentiment. However, the company's proactive management of expenses and strategic initiatives, such as the Syracuse office opening, could be seen as positive steps for future growth. The capital and liquidity positions remain strong, providing some stability and potential for future lending capacity.
The banking sector is highly sensitive to interest rate fluctuations and Tompkins Financial Corporation's performance reflects the broader industry's response to the Federal Reserve's monetary policy tightening. The increased cost of interest-bearing deposits is a direct result of aggressive rate hikes aimed at combating inflation. The company's loan to deposit ratio indicates a higher reliance on deposits to fund loans, which could be a concern if deposit levels continue to decline.
Despite the downturn in net income and earnings per share, the strategic reinvestment into higher-yielding securities could be a long-term benefit, enhancing the bank's interest income in a persistently high-rate environment. The reported growth in noninterest income, albeit modest, suggests diversification of revenue streams, which is a positive sign for resilience against interest rate headwinds.
The reported asset quality issues, with an increase in nonperforming loans and leases, could be a red flag for investors, signaling potential risks in the loan portfolio. This is particularly relevant in the context of a single commercial real estate relationship impacting the nonperforming loans figure significantly.
The disclosure of non-recurring expenses and the impact of branch closures on the financial statements are critical for compliance with regulatory standards and investor transparency. The increased provision for credit losses reflects a cautious approach to potential future loan defaults, which aligns with regulatory expectations for risk management.
The company's capital ratios exceeding regulatory minimums for well-capitalized institutions is a strong indicator of financial health and regulatory compliance. This solid capital position may provide a buffer against potential loan losses and support the bank's strategic growth initiatives.
It's also worth noting the impact of surrendering certain separate account BOLI policies on tax expense, which demonstrates the complexity of tax management for financial institutions and the need for careful consideration of tax strategies in relation to overall financial performance.
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of
For the year ended December 31, 2023, diluted earnings per share of
Tompkins President and CEO, Stephen Romaine, commented, "In the fourth quarter we continued to execute on strategic initiatives and are pleased to announce our expanded presence in
SELECTED HIGHLIGHTS FOR THE PERIOD:
-
Net interest margin for the fourth quarter of 2023 expanded to
2.82% , compared to2.75% for the third quarter of 2023. -
Total loans at December 31, 2023 were up
$171.1 million 3.2% (12.6% on an annualized basis), compared to the immediate prior quarter, and up$337.0 million 6.4% , from December 31, 2022. -
Total deposits at December 31, 2023 were
$6.4 billion $223.6 million 3.4% (13.5% on an annualized basis), from September 30, 2023, and down$202.5 million 3.1% , from December 31, 2022. -
Loan to deposit ratio was
87.6% , compared to82.1% for the immediate prior quarter. -
Regulatory Tier 1 capital to average assets was
9.08% at December 31, 2023, compared to9.01% at September 30, 2023 and9.34% at December 31, 2022.
NET INTEREST INCOME
Net interest income was
For the year ended December 31, 2023, net interest income was
Average loans for the quarter ended December 31, 2023 were up
Average total deposits for the fourth quarter of 2023 were up
NONINTEREST INCOME
Noninterest income of
Noninterest income for the year ended December 31, 2023 was
NONINTEREST EXPENSE
Noninterest expense was
For the year-to-date period, noninterest expense of
INCOME TAX EXPENSE
The provision for income tax expense of
ASSET QUALITY
The allowance for credit losses represented
Provision for credit losses for the fourth quarter of 2023 was
Nonperforming assets represented
Special Mention and Substandard loans and leases totaled
CAPITAL POSITION
Capital ratios at December 31, 2023 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 December 31, 2023 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", or "anticipate", the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the expected increases in revenue attributable to the reinvestment of proceeds from the sale of available-for-sale debt securities in securities with higher estimated yields and the sufficiency of existing collateral to cover exposure related to nonperforming loans. 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; GDP 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 |
12/31/2023 |
12/31/2022 |
||||
|
|
(Audited) |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
67,212 |
|
$ |
18,572 |
|
Interest bearing balances due from banks |
|
12,330 |
|
|
59,265 |
|
Cash and Cash Equivalents |
|
79,542 |
|
|
77,837 |
|
|
|
|
||||
Available-for-sale debt securities, at fair value (amortized cost of |
|
1,416,650 |
|
|
1,594,967 |
|
Held-to-maturity debt securities, at amortized cost (fair value of |
|
312,401 |
|
|
312,344 |
|
Equity securities, at fair value |
|
787 |
|
|
777 |
|
Total loans and leases, net of unearned income and deferred costs and fees |
|
5,605,935 |
|
|
5,268,911 |
|
Less: Allowance for credit losses |
|
51,584 |
|
|
45,934 |
|
Net Loans and Leases |
|
5,554,351 |
|
|
5,222,977 |
|
|
|
|
||||
Federal Home Loan Bank and other stock |
|
33,719 |
|
|
17,720 |
|
Bank premises and equipment, net |
|
79,687 |
|
|
82,140 |
|
Corporate owned life insurance |
|
67,884 |
|
|
85,556 |
|
Goodwill |
|
92,602 |
|
|
92,602 |
|
Other intangible assets, net |
|
2,327 |
|
|
2,708 |
|
Accrued interest and other assets |
|
179,799 |
|
|
181,058 |
|
Total Assets |
$ |
7,819,749 |
|
$ |
7,670,686 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
|
3,484,878 |
|
|
3,820,739 |
|
Time |
|
998,013 |
|
|
631,411 |
|
Noninterest bearing |
|
1,916,956 |
|
|
2,150,145 |
|
Total Deposits |
|
6,399,847 |
|
|
6,602,295 |
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
|
50,996 |
|
|
56,278 |
|
Other borrowings |
|
602,100 |
|
|
291,300 |
|
Other liabilities |
|
96,872 |
|
|
103,423 |
|
Total Liabilities |
$ |
7,149,815 |
|
$ |
7,053,296 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value |
|
1,444 |
|
|
1,456 |
|
Additional paid-in capital |
|
297,183 |
|
|
302,763 |
|
Retained earnings |
|
501,510 |
|
|
526,727 |
|
Accumulated other comprehensive loss |
|
(125,005 |
) |
|
(208,689 |
) |
Treasury stock, at cost – 132,097 shares at December 31, 2023, and 128,749 shares at December 31, 2022 |
|
(6,610 |
) |
|
(6,279 |
) |
Total Tompkins Financial Corporation Shareholders’ Equity |
|
668,522 |
|
|
615,978 |
|
Noncontrolling interests |
|
1,412 |
|
|
1,412 |
|
Total Equity |
$ |
669,934 |
|
$ |
617,390 |
|
Total Liabilities and Equity |
$ |
7,819,749 |
|
$ |
7,670,686 |
|
|
|
|
||||
TOMPKINS FINANCIAL CORPORATION |
|
|
|||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
Year Ended |
|||||||||
|
12/31/2023 |
12/31/2022 |
12/31/2023 |
12/31/2022 |
|||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|||||||
Loans |
$ |
69,035 |
$ |
58,930 |
|
$ |
260,434 |
|
$ |
217,607 |
|
Due from banks |
|
227 |
|
181 |
|
|
674 |
|
|
371 |
|
Available-for-sale debt securities |
|
9,717 |
|
6,939 |
|
|
29,677 |
|
|
27,929 |
|
Held-to-maturity debt securities |
|
1,222 |
|
1,221 |
|
|
4,876 |
|
|
4,771 |
|
Federal Home Loan Bank and other stock |
|
584 |
|
254 |
|
|
1,697 |
|
|
646 |
|
Total Interest and Dividend Income |
|
80,785 |
$ |
67,525 |
|
$ |
297,358 |
|
$ |
251,324 |
|
INTEREST EXPENSE |
|
|
|
|
|||||||
Time certificates of deposits of |
|
3,949 |
|
909 |
|
|
11,421 |
|
|
2,298 |
|
Other deposits |
|
19,526 |
|
6,973 |
|
|
59,387 |
|
|
13,870 |
|
Federal funds purchased and securities sold under agreements to repurchase |
|
14 |
|
14 |
|
|
58 |
|
|
60 |
|
Other borrowings |
|
4,937 |
|
2,335 |
|
|
16,978 |
|
|
4,815 |
|
Total Interest Expense |
|
28,426 |
|
10,231 |
|
|
87,844 |
|
|
21,043 |
|
Net Interest Income |
|
52,359 |
|
57,294 |
|
|
209,514 |
|
|
230,281 |
|
Less: Provision for credit loss expense |
|
1,761 |
|
1,397 |
|
|
4,339 |
|
|
2,789 |
|
Net Interest Income After Credit for Credit Loss Expense |
|
50,598 |
|
55,897 |
|
|
205,175 |
|
|
227,492 |
|
NONINTEREST INCOME |
|
|
|
|
|||||||
Insurance commissions and fees |
|
7,773 |
|
7,630 |
|
|
37,351 |
|
|
36,201 |
|
Wealth management fees |
|
4,422 |
|
4,241 |
|
|
17,951 |
|
|
18,091 |
|
Service charges on deposit accounts |
|
1,773 |
|
1,913 |
|
|
6,913 |
|
|
7,365 |
|
Card services income |
|
2,859 |
|
2,791 |
|
|
11,488 |
|
|
11,024 |
|
Other income |
|
1,977 |
|
2,231 |
|
|
6,511 |
|
|
5,925 |
|
Net gain (loss) on securities transactions |
|
46 |
|
(455 |
) |
|
(69,973 |
) |
|
(634 |
) |
Total Noninterest Income |
|
18,850 |
|
18,351 |
|
|
10,241 |
|
|
77,972 |
|
NONINTEREST EXPENSE |
|
|
|
|
|||||||
Salaries and wages |
|
23,710 |
|
25,249 |
|
|
97,370 |
|
|
98,261 |
|
Other employee benefits |
|
6,626 |
|
6,342 |
|
|
27,333 |
|
|
24,969 |
|
Net occupancy expense of premises |
|
3,544 |
|
3,163 |
|
|
13,278 |
|
|
13,093 |
|
Furniture and fixture expense |
|
2,425 |
|
2,007 |
|
|
8,663 |
|
|
8,058 |
|
Amortization of intangible assets |
|
84 |
|
218 |
|
|
334 |
|
|
873 |
|
Other operating expense |
|
14,911 |
|
13,211 |
|
|
56,314 |
|
|
50,497 |
|
Total Noninterest Expenses |
|
51,300 |
|
50,190 |
|
|
203,292 |
|
|
195,751 |
|
Income Before Income Tax Expense |
|
18,148 |
|
24,058 |
|
|
12,124 |
|
|
109,713 |
|
Income Tax Expense |
|
3,114 |
|
4,478 |
|
|
2,495 |
|
|
24,557 |
|
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
|
15,034 |
|
19,580 |
|
|
9,629 |
|
|
85,156 |
|
Less: Net Income Attributable to Noncontrolling Interests |
|
31 |
|
32 |
|
|
124 |
|
|
126 |
|
Net Income Attributable to Tompkins Financial Corporation |
$ |
15,003 |
|
19,548 |
|
|
9,505 |
|
|
85,030 |
|
Basic Earnings Per Share |
$ |
1.06 |
$ |
1.36 |
|
$ |
0.66 |
|
$ |
5.92 |
|
Diluted Earnings Per Share |
$ |
1.05 |
$ |
1.36 |
|
$ |
0.66 |
|
$ |
5.89 |
|
|
|
|
|
|
|||||||
|
|
|
|||||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||
|
December 31, 2023 |
December 31, 2022 |
||||||||||||
|
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 |
$ |
14,351 |
$ |
227 |
|
6.28 |
% |
$ |
58,488 |
$ |
181 |
|
1.23 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
|
|
1,789,043 |
|
10,411 |
|
2.31 |
% |
|
2,186,858 |
|
7,627 |
|
1.38 |
% |
State and municipal (2) |
|
90,070 |
|
574 |
|
2.53 |
% |
|
94,377 |
|
608 |
|
2.56 |
% |
Other securities (2) |
|
3,242 |
|
60 |
|
7.37 |
% |
|
3,270 |
|
47 |
|
5.68 |
% |
Total securities |
|
1,882,355 |
|
11,045 |
|
2.33 |
% |
|
2,284,505 |
|
8,282 |
|
1.44 |
% |
FHLBNY and FRB stock |
|
24,555 |
|
584 |
|
9.44 |
% |
|
15,942 |
|
255 |
|
6.33 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,486,715 |
|
69,197 |
|
5.00 |
% |
|
5,209,721 |
|
59,140 |
|
4.50 |
% |
Total interest-earning assets |
|
7,407,976 |
|
81,053 |
|
4.34 |
% |
|
7,568,656 |
|
67,858 |
|
3.56 |
% |
Other assets |
|
259,006 |
|
|
|
152,679 |
|
|
||||||
Total assets |
$ |
7,666,982 |
|
|
$ |
7,721,335 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
$ |
3,643,919 |
$ |
14,915 |
|
1.62 |
% |
$ |
3,905,570 |
$ |
5,888 |
|
0.60 |
% |
Time deposits |
|
925,790 |
|
8,560 |
|
3.67 |
% |
|
615,493 |
|
1,994 |
|
1.28 |
% |
Total interest-bearing deposits |
|
4,569,709 |
|
23,475 |
|
2.04 |
% |
|
4,521,063 |
|
7,882 |
|
0.69 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
51,903 |
|
14 |
|
0.10 |
% |
|
55,701 |
|
14 |
|
0.10 |
% |
Other borrowings |
|
398,932 |
|
4,937 |
|
4.91 |
% |
|
251,797 |
|
2,335 |
|
3.68 |
% |
Total interest-bearing liabilities |
|
5,020,544 |
|
28,426 |
|
2.25 |
% |
|
4,828,561 |
|
10,231 |
|
0.84 |
% |
Noninterest bearing deposits |
|
1,920,510 |
|
|
|
2,196,992 |
|
|
||||||
Accrued expenses and other liabilities |
|
103,648 |
|
|
|
115,063 |
|
|
||||||
Total liabilities |
|
7,044,702 |
|
|
|
7,140,615 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
620,789 |
|
|
|
579,223 |
|
|
||||||
Noncontrolling interest |
|
1,491 |
|
|
|
1,497 |
|
|
||||||
Total equity |
|
622,280 |
|
|
|
580,720 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,666,982 |
|
|
$ |
7,721,335 |
|
|
||||||
Interest rate spread |
|
|
2.09 |
% |
|
|
2.72 |
% |
||||||
Net interest income/margin on earning assets |
|
|
52,627 |
|
2.82 |
% |
|
|
57,627 |
|
3.02 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(268 |
) |
|
|
|
(333 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
52,359 |
|
|
|
$ |
57,294 |
|
|
||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
|
Year to Date Period Ended |
Year to Date Period Ended |
||||||||||||
|
December 31, 2023 |
December 31, 2022 |
||||||||||||
|
Average |
|
|
Average |
|
|
||||||||
|
Balance |
|
Average |
Balance |
|
Average |
||||||||
(Dollar amounts in thousands) |
(YTD) |
Interest |
Yield/Rate |
(YTD) |
Interest |
Yield/Rate |
||||||||
ASSETS |
|
|
|
|
|
|
||||||||
Interest-earning assets |
|
|
|
|
|
|
||||||||
Interest-bearing balances due from banks |
$ |
13,064 |
$ |
674 |
|
5.16 |
% |
$ |
85,788 |
$ |
371 |
|
0.43 |
% |
Securities (1) |
|
|
|
|
|
|
||||||||
|
|
1,920,678 |
|
32,433 |
|
1.69 |
% |
|
2,265,226 |
|
30,587 |
|
1.35 |
% |
State and municipal (2) |
|
91,407 |
|
2,338 |
|
2.56 |
% |
|
97,283 |
|
2,490 |
|
2.56 |
% |
Other securities (2) |
|
3,272 |
|
229 |
|
6.99 |
% |
|
3,329 |
|
135 |
|
4.06 |
% |
Total securities |
|
2,015,357 |
|
35,000 |
|
1.74 |
% |
|
2,365,838 |
|
33,212 |
|
1.40 |
% |
FHLBNY and FRB stock |
|
22,284 |
|
1,697 |
|
7.63 |
% |
|
13,354 |
|
646 |
|
4.84 |
% |
Total loans and leases, net of unearned income (2)(3) |
|
5,357,699 |
|
261,144 |
|
4.87 |
% |
|
5,142,098 |
|
218,494 |
|
4.25 |
% |
Total interest-earning assets |
|
7,408,404 |
|
298,515 |
|
4.03 |
% |
|
7,607,078 |
|
252,723 |
|
3.32 |
% |
Other assets |
|
233,268 |
|
|
|
221,442 |
|
|
||||||
Total assets |
$ |
7,641,672 |
|
|
$ |
7,828,520 |
|
|
||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||
Deposits |
|
|
|
|
|
|
||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||
Interest bearing checking, savings, & money market |
$ |
3,697,780 |
$ |
46,820 |
|
1.27 |
% |
$ |
4,029,008 |
$ |
10,389 |
|
0.26 |
% |
Time deposits |
|
793,709 |
|
23,988 |
|
3.02 |
% |
|
611,708 |
|
5,779 |
|
0.94 |
% |
Total interest-bearing deposits |
|
4,491,489 |
|
70,808 |
|
1.58 |
% |
|
4,640,716 |
|
16,168 |
|
0.35 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
55,773 |
|
58 |
|
0.10 |
% |
|
57,126 |
|
60 |
|
0.10 |
% |
Other borrowings |
|
363,530 |
|
16,978 |
|
4.67 |
% |
|
195,110 |
|
4,815 |
|
2.47 |
% |
Total interest-bearing liabilities |
|
4,910,792 |
|
87,844 |
|
1.79 |
% |
|
4,892,952 |
|
21,043 |
|
0.43 |
% |
Noninterest bearing deposits |
|
1,994,861 |
|
|
|
2,186,720 |
|
|
||||||
Accrued expenses and other liabilities |
|
101,287 |
|
|
|
107,122 |
|
|
||||||
Total liabilities |
|
7,006,940 |
|
|
|
7,186,794 |
|
|
||||||
Tompkins Financial Corporation Shareholders’ equity |
|
633,267 |
|
|
|
640,258 |
|
|
||||||
Noncontrolling interest |
|
1,465 |
|
|
|
1,468 |
|
|
||||||
Total equity |
|
634,732 |
|
|
|
641,726 |
|
|
||||||
|
|
|
|
|
|
|
||||||||
Total liabilities and equity |
$ |
7,641,672 |
|
|
$ |
7,828,520 |
|
|
||||||
Interest rate spread |
|
|
2.24 |
% |
|
|
2.89 |
% |
||||||
Net interest income/margin on earning assets |
|
|
210,671 |
|
2.84 |
% |
|
|
231,680 |
|
3.05 |
% |
||
|
|
|
|
|
|
|
||||||||
Tax Equivalent Adjustment |
|
|
(1,157 |
) |
|
|
|
(1,399 |
) |
|
||||
Net interest income per consolidated financial statements |
|
$ |
209,514 |
|
|
|
$ |
230,281 |
|
|
||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Period End Balance Sheet |
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-22 |
Dec-23 |
||||||
Securities |
$ |
1,729,838 |
$ |
1,701,636 |
$ |
1,781,150 |
$ |
1,899,001 |
$ |
1,908,088 |
$ |
1,729,838 |
Total Loans |
|
5,605,935 |
|
5,434,860 |
|
5,352,365 |
|
5,273,671 |
|
5,268,911 |
|
5,605,935 |
Allowance for credit losses |
|
51,584 |
|
49,336 |
|
48,545 |
|
46,099 |
|
45,934 |
|
51,584 |
Total assets |
|
7,819,749 |
|
7,691,162 |
|
7,626,238 |
|
7,644,371 |
|
7,670,686 |
|
7,819,749 |
Total deposits |
|
6,399,847 |
|
6,623,436 |
|
6,454,651 |
|
6,509,009 |
|
6,602,295 |
|
6,399,847 |
Federal funds purchased and securities sold under agreements to repurchase |
|
50,996 |
|
56,120 |
|
50,483 |
|
63,491 |
|
56,278 |
|
50,996 |
Other borrowings |
|
602,100 |
|
296,800 |
|
387,100 |
|
327,000 |
|
291,300 |
|
602,100 |
Total common equity |
|
668,522 |
|
610,851 |
|
634,967 |
|
648,322 |
|
615,978 |
|
668,522 |
Total equity |
|
669,934 |
|
612,356 |
|
636,441 |
|
649,765 |
|
617,390 |
|
669,934 |
Average Balance Sheet |
|
|
|
|
|
|
||||||
Average earning assets |
$ |
7,407,976 |
$ |
7,405,434 |
$ |
7,409,714 |
$ |
7,410,553 |
$ |
7,568,656 |
$ |
7,408,404 |
Average assets |
|
7,666,982 |
|
7,629,876 |
|
7,635,800 |
|
7,633,793 |
|
7,721,335 |
|
7,641,672 |
Average interest-bearing liabilities |
|
5,020,544 |
|
4,902,930 |
|
4,883,026 |
|
4,834,712 |
|
4,828,561 |
|
4,910,792 |
Average equity |
|
622,280 |
|
634,980 |
|
650,554 |
|
631,208 |
|
580,720 |
|
634,732 |
Share data |
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
|
14,194,503 |
|
14,185,763 |
|
14,314,133 |
|
14,326,595 |
|
14,308,323 |
|
14,254,661 |
Weighted average shares outstanding (diluted) |
|
14,246,024 |
|
14,224,748 |
|
14,346,787 |
|
14,389,673 |
|
14,385,884 |
|
14,301,221 |
Period-end shares outstanding |
|
14,405,920 |
|
14,350,177 |
|
14,405,503 |
|
14,519,748 |
|
14,519,831 |
|
14,405,920 |
Common equity book value per share |
$ |
46.41 |
$ |
42.57 |
$ |
44.08 |
$ |
44.65 |
$ |
42.42 |
$ |
46.41 |
Tangible book value per share (Non-GAAP)** |
$ |
39.88 |
$ |
36.01 |
$ |
37.54 |
$ |
38.16 |
$ |
35.93 |
$ |
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 |
$ |
52,359 |
$ |
51,013 |
|
$ |
51,896 |
$ |
54,246 |
|
$ |
57,294 |
$ |
209,514 |
Provision (credit) for credit loss expense (5) |
|
1,761 |
|
1,150 |
|
|
2,253 |
|
(825 |
) |
|
1,397 |
|
4,339 |
Noninterest income |
|
18,850 |
|
(41,624 |
) |
|
12,615 |
|
20,400 |
|
|
18,351 |
|
10,241 |
Noninterest expense (5) |
|
51,300 |
|
49,866 |
|
|
51,968 |
|
50,158 |
|
|
50,190 |
|
203,292 |
Income tax expense/(benefit) |
|
3,114 |
|
(8,304 |
) |
|
1,784 |
|
5,901 |
|
|
4,478 |
|
2,495 |
Net (loss)/income attributable to Tompkins Financial Corporation |
|
15,003 |
|
(33,354 |
) |
|
8,475 |
|
19,381 |
|
|
19,548 |
|
9,505 |
Noncontrolling interests |
|
31 |
|
31 |
|
|
31 |
|
31 |
|
|
32 |
|
124 |
Basic earnings (loss) per share (4) |
|
1.06 |
|
(2.35 |
) |
|
0.59 |
|
1.35 |
|
|
1.36 |
|
0.66 |
Diluted earnings (loss) per share (4) |
|
1.05 |
|
(2.35 |
) |
|
0.59 |
|
1.35 |
|
|
1.36 |
|
0.66 |
Nonperforming Assets |
|
|
|
|
|
|
||||||
Nonaccrual loans and leases |
$ |
62,165 |
$ |
31,381 |
$ |
31,333 |
$ |
28,424 |
$ |
28,289 |
$ |
62,165 |
Loans and leases 90 days past due and accruing |
|
101 |
|
52 |
|
34 |
|
13 |
|
25 |
|
101 |
Performing troubled debt restructuring* |
|
0 |
|
0 |
|
0 |
|
0 |
|
4,530 |
|
0 |
Total nonperforming loans and leases |
|
62,266 |
|
31,433 |
|
31,367 |
|
28,437 |
|
32,844 |
|
62,266 |
OREO |
|
131 |
|
0 |
|
36 |
|
36 |
|
152 |
|
131 |
Total nonperforming assets |
$ |
62,397 |
$ |
31,433 |
$ |
31,403 |
$ |
28,473 |
$ |
32,996 |
$ |
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 |
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-22 |
Dec-23 |
||||||
Loans and leases 30-89 days past due and |
|
|
|
|
|
|
||||||
accruing |
$ |
4,210 |
$ |
40,893 |
$ |
20,255 |
$ |
5,894 |
$ |
3,172 |
$ |
4,210 |
Loans and leases 90 days past due and accruing |
|
101 |
|
52 |
|
34 |
|
13 |
|
25 |
|
101 |
Total loans and leases past due and accruing |
|
4,311 |
|
40,945 |
|
20,289 |
|
5,907 |
|
3,197 |
|
4,311 |
Allowance for Credit Losses |
||||||||||||||||
Balance at beginning of period |
$ |
49,336 |
|
$ |
48,545 |
$ |
46,099 |
|
$ |
45,934 |
|
$ |
44,772 |
$ |
45,934 |
|
Impact of adopting ASC 326 |
|
0 |
|
|
0 |
|
0 |
|
|
64 |
|
|
0 |
|
64 |
|
Provision (credit) for credit losses |
|
2,658 |
|
|
968 |
|
2,419 |
|
|
(1,180 |
) |
|
1,352 |
$ |
4,865 |
|
Net loan and lease (recoveries) charge-offs |
|
410 |
|
|
177 |
|
(27 |
) |
|
(1,281 |
) |
|
190 |
$ |
(721 |
) |
Allowance for credit losses at end of period |
$ |
51,584 |
|
$ |
49,336 |
$ |
48,545 |
|
$ |
46,099 |
|
$ |
45,934 |
$ |
51,584 |
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
||||||||||||||||
Balance at beginning of period |
$ |
3,167 |
|
$ |
2,985 |
$ |
3,151 |
|
$ |
2,796 |
|
$ |
2,751 |
$ |
2,796 |
|
(Credit) provision for credit losses |
|
(897 |
) |
|
182 |
|
(166 |
) |
|
355 |
|
|
45 |
$ |
(526 |
) |
Allowance for credit losses at end of period |
$ |
2,270 |
|
$ |
3,167 |
$ |
2,985 |
|
$ |
3,151 |
|
$ |
2,796 |
$ |
2,270 |
|
Loan Classification - Total Portfolio |
|
|
|
|
|
|
||||||
Special Mention |
$ |
50,368 |
$ |
65,993 |
$ |
56,305 |
$ |
39,255 |
$ |
49,752 |
$ |
50,368 |
Substandard |
|
72,717 |
|
56,947 |
|
61,820 |
|
46,315 |
|
48,537 |
|
72,717 |
Ratio Analysis
Credit Quality |
|
|
|
|
|
|
Nonperforming loans and leases/total loans and leases |
1.11 % |
0.58 % |
0.59 % |
0.54 % |
0.62 % |
1.11 % |
Nonperforming assets/total assets |
0.80 % |
0.41 % |
0.41 % |
0.37 % |
0.43 % |
0.80 % |
Allowance for credit losses/total loans and leases |
0.92 % |
0.91 % |
0.91 % |
0.87 % |
0.87 % |
0.92 % |
Allowance/nonperforming loans and leases |
82.84 % |
156.96 % |
154.76 % |
162.11 % |
139.86 % |
82.84 % |
Net loan and lease losses (recoveries) annualized/total average loans and leases |
0.03 % |
0.01 % |
0.00 % |
(0.10) % |
0.01 % |
(0.01) % |
Capital Adequacy |
|
|
|
|
|
|
Tier 1 Capital (to average assets) |
9.08 % |
9.01 % |
9.57 % |
9.63 % |
9.34 % |
9.08 % |
Total Capital (to risk-weighted assets) |
13.36 % |
13.46 % |
14.48 % |
14.62 % |
14.42 % |
13.36 % |
Profitability (period-end) |
|
|
|
|
|
|
Return on average assets * |
0.78 % |
(1.73) % |
0.45 % |
1.03 % |
1.00 % |
0.12 % |
Return on average equity * |
9.56 % |
(20.84) % |
5.22 % |
12.45 % |
13.36 % |
1.50 % |
Net interest margin (TE) * |
2.82 % |
2.75 % |
2.83 % |
2.99 % |
3.02 % |
2.84 % |
* 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 accounting principles generally accepted in
Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP) |
||||||||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
|
Dec-23 |
Sep-23 |
Jun-23 |
Mar-23 |
Dec-22 |
Dec-23 |
||||||
Total common equity |
$ |
668,522 |
$ |
610,851 |
$ |
634,967 |
$ |
648,322 |
$ |
615,978 |
$ |
668,522 |
Less: Goodwill and intangibles |
|
94,003 |
|
94,086 |
|
94,169 |
|
94,253 |
|
94,336 |
|
94,003 |
Tangible common equity (Non-GAAP) |
|
574,519 |
|
516,765 |
|
540,798 |
|
554,069 |
|
521,642 |
|
574,519 |
Ending shares outstanding |
|
14,405,920 |
|
14,350,177 |
|
14,405,503 |
|
14,519,748 |
|
14,519,831 |
|
14,405,920 |
Tangible book value per share (Non-GAAP) |
$ |
39.88 |
$ |
36.01 |
$ |
37.54 |
$ |
38.16 |
$ |
35.93 |
$ |
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, 2022.
(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/20240126335184/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
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