Attached files
| file | filename |
|---|---|
| EX-99.3 - PRESS RELEASE - TOMPKINS FINANCIAL CORP | ex99-3.htm |
| EX-99.2 - PRESS RELEASE - TOMPKINS FINANCIAL CORP | ex99-2.htm |
| 8-K - CURRENT REPORT - TOMPKINS FINANCIAL CORP | tmp-8k_072216.htm |
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, July 22, 2016
Tompkins Financial Corporation Reports Second Quarter Earnings
ITHACA, NY – Tompkins Financial Corporation (NYSEMKT:TMP)
Tompkins Financial Corporation reported net income of $14.6 million for the quarter, and $28.8 million for the year to date period ended June 30, 2016, down $2.8 million and $1.3 million, respectively, from the same period in 2015. Prior year results included a non-recurring curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan, which was recognized in the second quarter of 2015.
Diluted earnings per share were $0.96 for the second quarter of 2016, down $0.19 per share (16.5%) from the second quarter of 2015. For the year to date period ended June 30, 2016, diluted earnings per share were $1.89, down $0.11 per share (5.5%) from the same period in 2015. If the non-recurring curtailment gain were excluded from prior year results, the current period diluted earnings per share would reflect growth of 5.5% for the quarter and 8.0% for the year to date when compared to the same periods in 2015. Refer to the table of “NON-GAAP MEASURES” included in this press release for additional details.
President and CEO, Stephen S. Romaine said "The current quarter and year to date periods reflect very good results for our Company. Solid loan growth, stable margins, and very good credit quality have been key to our success in the first half of the year.”
Selected highlights for second quarter:
| § | Net interest income of $44.9 million was up 8.7% compared to the second quarter of 2015. |
| § | Total loans of $4.0 billion were up 13.0% over the same period in 2015. |
| § | Net interest margin has remained relatively stable over the past five quarters. |
| § | Credit quality continues to improve with nonperforming assets down 21.0% compared to the second quarter of 2015. |
NET INTEREST INCOME
Net interest income of $44.9 million for the second quarter of 2016 increased by $3.6 million, or 8.7% compared to the same period in 2015. For the year to date period, net interest income was $88.9 million, up $6.4 million, or 7.7% from the same period in 2015.
Growth in net interest income was largely driven by $537.7 million of growth in total loans since the second quarter of 2015, an increase of 17.8%. The loan growth was supported in part by a $265.6 million increase in total deposits over the same period. The net interest margin was 3.36%, and has remained relatively stable since the second quarter of 2015.
NONINTEREST INCOME
Noninterest income represented 27.6% of total revenues in the second quarter of 2016, compared to 31.5% compared to the same period in 2015. While fee based revenue has remained relatively stable when compared to the prior year, overall noninterest income was down from the prior year both for the quarter and year to date periods. The lower noninterest income for the quarter was largely related to higher income in the prior year related to gains on the sale of available-for-sale securities (higher by $484,000 in the prior year) and gains on the sale of other real estate owned (higher by $858,000 in the prior year).
NONINTEREST EXPENSE
Noninterest expense was $39.4 million for the second quarter of 2016, up $6.5 million over the second quarter of 2015. For the year to date period, noninterest expense was $79.0, up $6.3 million from the same period in 2015. The second quarter and year to date noninterest expense in 2015 were reduced by a $6.0 million non-recurring curtailment gain related to a change in the Company’s defined benefit pension plan.
ASSET QUALITY
Asset quality trends showed continued improvement in the second quarter of 2016. Nonperforming assets were down 21.0% compared to the second quarter in 2015, and down 15.5% from the first quarter of 2016. Nonperforming assets represented 0.32% of total assets at June 30, 2016, down from 0.43% at December 31, 2015, and from 0.39% at March 31, 2016. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.89%.
Provision for loan and lease losses was $978,000 for the second quarter of 2016, up from $922,000 compared to the second quarter of 2015. The year-over-year increase in provision expense is primarily due to loan growth. Net charge-offs for the second quarter of 2016 were $384,000 compared to $316,000 reported in the second quarter 2015.
The Company’s allowance for originated loan and lease losses totaled $33.0 million at June 30, 2016, and represented 0.93% of total originated loans at June 30, 2016, compared to 0.98% at June 30, 2015, and 0.95% at December 31, 2015. The total allowance represented 183.0% of total nonperforming loans and leases at June 30, 2016, up from 146.7% at December 31, 2015, and 139.36% at June 30, 2015.
CAPITAL POSITION
Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.79%, compared to 8.82% reported for December 31, 2015, and 8.92% at June 30, 2015. Total Capital to risk-weighted assets at June 30, 2016 was 12.95%, compared to 13.03% reported at December 31, 2015 and 13.46% at June 30, 2015.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, 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 of 1995:
This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
| (In thousands, except share and per share data) (Unaudited) | As of | As of | ||||
| ASSETS | 06/30/2016 | 12/31/2015 | ||||
| Cash and noninterest bearing balances due from banks | $ | 64,551 | $ | 56,261 | ||
| Interest bearing balances due from banks | 1,834 | 1,996 | ||||
| Cash and Cash Equivalents | 66,385 | 58,257 | ||||
| Trading securities, at fair value | 6,719 | 7,368 | ||||
| Available-for-sale securities, at fair value (amortized cost of $1,388,108 at June 30, | ||||||
| 2016 and $1,390,255 at December 31, 2015) | 1,412,382 | 1,385,684 | ||||
| Held-to-maturity securities, at amortized cost (fair value of $152,901 at June 30, 2016 | ||||||
| and $146,686 at December 31, 2015) | 144,979 | 146,071 | ||||
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,551,628 | 3,310,768 | ||||
| Acquired loans and leases, covered (3) | 12,269 | 14,031 | ||||
| Acquired loans and leases, non-covered (3) | 414,216 | 447,243 | ||||
| Less: Allowance for loan and lease losses | 33,125 | 32,004 | ||||
| Net Loans and Leases | 3,944,988 | 3,740,038 | ||||
| Federal Home Loan Bank stock | 36,462 | 29,969 | ||||
| Bank premises and equipment, net | 61,683 | 60,331 | ||||
| Corporate owned life insurance | 76,921 | 75,792 | ||||
| Goodwill | 92,942 | 91,792 | ||||
| Other intangible assets, net | 12,532 | 12,448 | ||||
| Accrued interest and other assets | 68,913 | 82,245 | ||||
| Total Assets | $ | 5,924,906 | $ | 5,689,995 | ||
| LIABILITIES | ||||||
| Deposits: | ||||||
| Interest bearing: | ||||||
| Checking, savings and money market | 2,462,885 | 2,401,519 | ||||
| Time | 883,320 | 855,133 | ||||
| Noninterest bearing | 1,123,516 | 1,138,654 | ||||
| Total Deposits | 4,469,721 | 4,395,306 | ||||
| Federal funds purchased and securities sold under agreements to repurchase | 97,180 | 136,513 | ||||
| Other borrowings, including certain amounts at fair value of $10,426 at June 30, 2016 | ||||||
| and $10,576 at December 31, 2015 | 700,026 | 536,285 | ||||
| Trust preferred debentures | 37,595 | 37,509 | ||||
| Other liabilities | 65,949 | 67,916 | ||||
| Total Liabilities | $ | 5,370,471 | $ | 5,173,529 | ||
| EQUITY | ||||||
| Tompkins Financial Corporation shareholders' equity: | ||||||
| Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: | ||||||
| 15,071,279 at June 30, 2016; and 15,015,594 at December 31, 2015 | 1,507 | 1,502 | ||||
| Additional paid-in capital | 355,462 | 350,823 | ||||
| Retained earnings | 212,990 | 197,445 | ||||
| Accumulated other comprehensive loss | (13,267) | (31,001) | ||||
| Treasury stock, at cost – 114,110 shares at June 30, 2016, and 116,126 shares | ||||||
| at December 31, 2015 | (3,774) | (3,755) | ||||
| Total Tompkins Financial Corporation Shareholders’ Equity | 552,918 | 515,014 | ||||
| Noncontrolling interests | 1,517 | 1,452 | ||||
| Total Equity | $ | 554,435 | $ | 516,466 | ||
| Total Liabilities and Equity | $ | 5,924,906 | $ | 5,689,995 | ||
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended | Six Months Ended | ||||||||
| (In thousands, except per share data) (Unaudited) | 06/30/2016 | 06/30/2015 | 06/30/2016 | 06/30/2015 | |||||
| INTEREST AND DIVIDEND INCOME | |||||||||
| Loans | $ | 41,834 | $ | 38,059 | $ | 82,321 | $ | 75,435 | |
| Due from banks | 1 | 1 | 3 | 2 | |||||
| Trading securities | 77 | 90 | 158 | 184 | |||||
| Available-for-sale securities | 7,284 | 7,374 | 14,815 | 15,188 | |||||
| Held-to-maturity securities | 903 | 674 | 1,814 | 1,270 | |||||
| Federal Home Loan Bank stock and Federal Reserve Bank stock | 318 | 225 | 615 | 572 | |||||
| Total Interest and Dividend Income | 50,417 | 46,423 | 99,726 | 92,651 | |||||
| INTEREST EXPENSE | |||||||||
| Time certificates of deposits of $250,000 or more | 422 | 354 | 812 | 689 | |||||
| Other deposits | 2,264 | 2,267 | 4,473 | 4,553 | |||||
| Federal funds purchased and securities sold under agreements to | |||||||||
| repurchase | 644 | 665 | 1,310 | 1,335 | |||||
| Trust preferred debentures | 594 | 573 | 1,183 | 1,143 | |||||
| Other borrowings | 1,586 | 1,234 | 3,003 | 2,373 | |||||
| Total Interest Expense | 5,510 | 5,093 | 10,781 | 10,093 | |||||
| Net Interest Income | 44,907 | 41,330 | 88,945 | 82,558 | |||||
| Less: Provision for loan and lease losses | 978 | 922 | 1,833 | 1,131 | |||||
| Net Interest Income After Provision for Loan and Lease Losses | 43,929 | 40,408 | 87,112 | 81,427 | |||||
| NONINTEREST INCOME | |||||||||
| Insurance commissions and fees | 7,517 | 7,407 | 15,079 | 14,777 | |||||
| Investment services income | 3,834 | 3,838 | 7,620 | 7,844 | |||||
| Service charges on deposit accounts | 2,092 | 2,244 | 4,356 | 4,402 | |||||
| Card services income | 2,002 | 2,025 | 3,943 | 3,843 | |||||
| Mark-to-market loss on trading securities | (60) | (74) | (106) | (137) | |||||
| Mark-to-market gain on liabilities held at fair value | 92 | 104 | 149 | 145 | |||||
| Other income | 1,367 | 2,695 | 3,074 | 4,721 | |||||
| Gain on sale of available-for-sale securities | 240 | 723 | 472 | 1,013 | |||||
| Total Noninterest Income | 17,084 | 18,962 | 34,587 | 36,608 | |||||
| NONINTEREST EXPENSES | |||||||||
| Salaries and wages | 19,333 | 18,394 | 38,322 | 35,962 | |||||
| Pension and other employee benefits | 4,934 | (519) | 10,217 | 5,475 | |||||
| Net occupancy expense of premises | 2,999 | 3,073 | 6,147 | 6,412 | |||||
| Furniture and fixture expense | 1,577 | 1,483 | 3,266 | 2,933 | |||||
| FDIC insurance | 783 | 748 | 1,605 | 1,489 | |||||
| Amortization of intangible assets | 521 | 500 | 1,048 | 1,007 | |||||
| Other operating expense | 9,241 | 9,239 | 18,289 | 19,332 | |||||
| Total Noninterest Expenses | 39,388 | 32,918 | 78,894 | 72,610 | |||||
| Income Before Income Tax Expense | 21,625 | 26,452 | 42,805 | 45,425 | |||||
| Income Tax Expense | 7,022 | 9,030 | 13,989 | 15,290 | |||||
| Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation | 14,603 | 17,422 | 28,816 | 30,135 | |||||
| Less: Net income attributable to noncontrolling interests | 32 | 32 | 65 | 65 | |||||
| Net Income Attributable to Tompkins Financial Corporation | $ | 14,571 | $ | 17,390 | $ | 28,751 | $ | 30,070 | |
| Basic Earnings Per Share | $ | 0.97 | $ | 1.16 | $ | 1.91 | $ | 2.01 | |
| Diluted Earnings Per Share | $ | 0.96 | $ | 1.15 | $ | 1.89 | $ | 2.00 | |
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
| Quarter Ended | Year to Date Period Ended | Year to Date Period Ended | |||||||||||||||
| June 30, 2016 | June 30, 2016 | June 30, 2015 | |||||||||||||||
| Average | Average | Average | |||||||||||||||
| Balance | Average | Balance | Average | Balance | Average | ||||||||||||
| (Dollar amounts in thousands) | (QTD) | Interest | Yield/Rate | (YTD) | Interest | Yield/Rate | (YTD) | Interest | Yield/Rate | ||||||||
| ASSETS | |||||||||||||||||
| Interest-earning assets | |||||||||||||||||
| Interest-bearing balances due from banks | $ | 1,936 | $ | 2 | 0.42% | $ | 2,015 | $ | 3 | 0.30% | $ | 1,607 | $ | 2 | 0.25% | ||
| Securities (4) | |||||||||||||||||
| U.S. Government securities | 1,464,091 | 7,647 | 2.10% | 1,461,423 | 15,549 | 2.14% | 1,442,846 | 15,366 | 2.15% | ||||||||
| Trading securities | 6,920 | 78 | 4.53% | 7,084 | 158 | 4.49% | 8,654 | 184 | 4.29% | ||||||||
| State and municipal (5) | 99,493 | 840 | 3.40% | 98,562 | 1,678 | 3.42% | 87,502 | 1,703 | 3.92% | ||||||||
| Other securities (5) | 3,641 | 30 | 3.31% | 3,664 | 61 | 3.35% | 3,758 | 60 | 3.22% | ||||||||
| Total securities | 1,574,145 | 8,595 | 2.20% | 1,570,733 | 17,446 | 2.23% | 1,542,760 | 17,313 | 2.26% | ||||||||
| FHLBNY and FRB stock | 31,617 | 318 | 4.05% | 29,708 | 615 | 4.16% | 22,355 | 572 | 5.15% | ||||||||
| Total loans and leases, net of unearned income (5)(6) | 3,885,215 | 42,525 | 4.40% | 3,838,211 | 83,713 | 4.39% | 3,431,282 | 76,635 | 4.50% | ||||||||
| Total interest-earning assets | 5,492,913 | 51,440 | 3.77% | 5,440,667 | 101,777 | 3.76% | 4,998,004 | 94,522 | 3.81% | ||||||||
| Other assets | 349,474 | 345,662 | 355,264 | ||||||||||||||
| Total assets | 5,842,387 | 5,786,329 | 5,353,268 | ||||||||||||||
| LIABILITIES & EQUITY | |||||||||||||||||
| Deposits | |||||||||||||||||
| Interest-bearing deposits | |||||||||||||||||
| Interest bearing checking, savings, & money market | 2,531,393 | 982 | 0.16% | 2,532,290 | 1,938 | 0.15% | 2,337,605 | 1,914 | 0.17% | ||||||||
| Time deposits | 890,864 | 1,704 | 0.77% | 879,479 | 3,347 | 0.77% | 912,016 | 3,328 | 0.74% | ||||||||
| Total interest-bearing deposits | 3,422,257 | 2,686 | 0.32% | 3,411,769 | 5,285 | 0.31% | 3,249,621 | 5,242 | 0.33% | ||||||||
| Federal funds purchased & securities sold under agreements to repurchase | 99,015 | 644 | 2.62% | 112,639 | 1,310 | 2.34% | 136,811 | 1,335 | 1.97% | ||||||||
| Other borrowings | 584,193 | 1,586 | 1.09% | 543,256 | 3,003 | 1.11% | 385,233 | 2,373 | 1.24% | ||||||||
| Trust preferred debentures | 37,566 | 594 | 6.36% | 37,545 | 1,183 | 6.34% | 37,374 | 1,143 | 6.17% | ||||||||
| Total interest-bearing liabilities | 4,143,031 | 5,510 | 0.53% | 4,105,209 | 10,781 | 0.53% | 3,809,039 | 10,093 | 0.53% | ||||||||
| Noninterest bearing deposits | 1,093,113 | 1,080,375 | 978,233 | ||||||||||||||
| Accrued expenses and other liabilities | 62,960 | 64,946 | 64,615 | ||||||||||||||
| Total liabilities | 5,299,104 | 5,250,530 | 4,851,887 | ||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 541,781 | 534,314 | 499,896 | ||||||||||||||
| Noncontrolling interest | 1,502 | 1,485 | 1,485 | ||||||||||||||
| Total equity | 543,283 | 535,799 | 501,381 | ||||||||||||||
| Total liabilities and equity | $ | 5,842,387 | $ | 5,786,329 | $ | 5,353,268 | |||||||||||
| Interest rate spread | 3.23% | 3.23% | 3.28% | ||||||||||||||
| Net interest income/margin on earning assets | 45,930 | 3.36% | 90,996 | 3.36% | 84,429 | 3.41% | |||||||||||
| Tax Equivalent Adjustment | (1,023) | (2,051) | (1,871) | ||||||||||||||
| Net interest income per consolidated financial statements | $ | 44,907 | $ | 88,945 | $ | 82,558 | |||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
| (In thousands, except per share data) | Quarter-Ended | Year-Ended | ||||||||||
| Jun-16 | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Dec-15 | |||||||
| Period End Balance Sheet | ||||||||||||
| Securities | $ | 1,564,080 | $ | 1,583,742 | $ | 1,539,123 | $ | 1,542,332 | $ | 1,536,374 | $ | 1,539,123 |
| Originated loans and leases, net of unearned income and deferred costs and fees (2) | 3,551,628 | 3,370,791 | 3,310,768 | 3,149,386 | 3,013,968 | 3,310,768 | ||||||
| Acquired loans and leases (3) | 426,485 | 450,122 | 461,274 | 484,927 | 507,963 | 461,274 | ||||||
| Allowance for loan and lease losses | 33,125 | 32,530 | 32,004 | 30,965 | 30,091 | 32,004 | ||||||
| Total assets | 5,924,906 | 5,764,971 | 5,689,995 | 5,594,718 | 5,436,136 | 5,689,995 | ||||||
| Total deposits | 4,469,721 | 4,555,228 | 4,395,306 | 4,437,073 | 4,204,089 | 4,395,306 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase | 97,180 | 116,551 | 136,513 | 134,941 | 131,063 | 136,513 | ||||||
| Other borrowings | 700,026 | 455,341 | 536,285 | 398,946 | 493,326 | 536,285 | ||||||
| Trust preferred debentures | 37,595 | 37,552 | 37,509 | 37,466 | 37,423 | 37,509 | ||||||
| Total common equity | 552,918 | 538,408 | 515,014 | 516,409 | 503,877 | 515,014 | ||||||
| Total equity | 554,435 | 539,893 | 516,466 | 517,959 | 505,394 | 516,466 | ||||||
| Average Balance Sheet | ||||||||||||
| Average earning assets | $ | 5,492,913 | $ | 5,388,420 | $ | 5,260,979 | $ | 5,138,665 | $ | 5,038,586 | $ | 5,099,743 |
| Average assets | 5,842,387 | 5,730,271 | 5,624,351 | 5,486,645 | 5,391,114 | 5,455,214 | ||||||
| Average interest-bearing liabilities | 4,143,031 | 4,067,385 | 3,930,707 | 3,856,025 | 3,835,430 | 3,851,549 | ||||||
| Average equity | 543,283 | 528,314 | 518,529 | 509,518 | 505,667 | 507,754 | ||||||
| Share data | ||||||||||||
| Weighted average shares outstanding (basic) | 14,798,515 | 14,760,276 | 14,719,394 | 14,739,915 | 14,751,844 | 14,728,193 | ||||||
| Weighted average shares outstanding (diluted) | 14,975,115 | 14,905,919 | 14,869,103 | 14,866,735 | 14,878,107 | 14,863,026 | ||||||
| Period-end shares outstanding | 15,035,369 | 15,023,776 | 14,979,684 | 14,905,576 | 14,942,107 | 14,979,684 | ||||||
| Common equity book value per share | $ | 36.77 | $ | 35.84 | $ | 34.38 | $ | 34.65 | $ | 33.72 | $ | 34.38 |
| Tangible book value per share (Non-GAAP) | $ | 29.82 | $ | 28.85 | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 27.48 |
| Income Statement | ||||||||||||
| Net interest income | $ | 44,907 | $ | 44,038 | $ | 43,437 | $ | 42,386 | $ | 41,330 | $ | 168,381 |
| Provision (Credit) for loan/lease losses | 978 | 855 | 1,533 | 281 | 922 | 2,945 | ||||||
| Noninterest income | 17,084 | 17,503 | 17,910 | 17,422 | 18,962 | 71,940 | ||||||
| Noninterest expense | 39,388 | 39,506 | 39,370 | 37,882 | 32,918 | 149,862 | ||||||
| Income tax expense | 7,022 | 6,967 | 6,557 | 7,115 | 9,030 | 28,962 | ||||||
| Net income attributable to Tompkins Financial Corporation | 14,571 | 14,180 | 13,854 | 14,497 | 17,390 | 58,421 | ||||||
| Noncontrolling interests | 32 | 33 | 33 | 33 | 32 | 131 | ||||||
| Basic earnings per share (9) | $ | 0.97 | $ | 0.95 | $ | 0.93 | $ | 0.97 | $ | 1.16 | $ | 3.91 |
| Diluted earnings per share (9) | $ | 0.96 | $ | 0.94 | $ | 0.92 | $ | 0.96 | $ | 1.15 | $ | 3.87 |
| Nonperforming Assets | ||||||||||||
| Originated nonaccrual loans and leases | $ | 11,008 | $ | 12,671 | $ | 13,506 | $ | 14,821 | $ | 14,566 | $ | 13,506 |
| Acquired nonaccrual loans and leases | 4,831 | 4,145 | 4,331 | 4,908 | 5,030 | 4,331 | ||||||
| Originated loans and leases 90 days past due and accruing | 89 | 57 | 58 | 57 | 58 | 58 | ||||||
| Troubled debt restructurings not included above | 2,172 | 3,862 | 3,915 | 3,465 | 1,939 | 3,915 | ||||||
| Total nonperforming loans and leases | 18,100 | 20,735 | 21,810 | 23,251 | 21,593 | 21,810 | ||||||
| OREO (8) | 1,001 | 1,865 | 2,692 | 3,188 | 2,570 | 2,692 | ||||||
| Total nonperforming assets | $ | 19,101 | $ | 22,600 | $ | 24,502 | $ | 26,439 | $ | 24,163 | $ | 24,502 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
| Quarter-Ended | Year-Ended | |||||||||||
| Delinquency - Originated loan and lease portfolio | Jun-16 | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Dec-15 | ||||||
| Loans and leases 30-89 days past due and | ||||||||||||
| accruing (2) | $ | 6,580 | $ | 2,519 | $ | 3,280 | $ | 3,550 | $ | 3,315 | $ | 3,280 |
| Loans and leases 90 days past due and accruing (2) | 89 | 57 | 58 | 57 | 58 | 58 | ||||||
| Total originated loans and leases past due and accruing (2) | 6,669 | 2,576 | 3,338 | 3,607 | 3,373 | 3,338 | ||||||
| Delinquency - Acquired loan and lease portfolio | ||||||||||||
| Covered loans and leases 30-89 days past due and accruing (3)(7) | $ | 850 | $ | 1 | $ | 276 | $ | 309 | $ | 455 | $ | 276 |
| Covered loans and leases 90 days or more past | ||||||||||||
| due and accruing (3)(7) | 474 | 469 | 524 | 508 | 674 | 524 | ||||||
| Non-covered loans and leases 30-89 days past | ||||||||||||
| due and accruing (3)(7) | 900 | 1,038 | 933 | 1,028 | 917 | 933 | ||||||
| Non-covered loans and leases 90 days past | ||||||||||||
| due and accruing (3)(7) | 1,387 | 1,446 | 1,991 | 2,069 | 3,031 | 1,991 | ||||||
| Total acquired loans and leases past due and accruing | 3,611 | 2,954 | 3,724 | 3,914 | 5,077 | 3,724 | ||||||
| Total loans and leases past due and accruing | $ | 10,280 | $ | 5,530 | $ | 7,062 | $ | 7,521 | $ | 8,450 | $ | 7,062 |
| Allowance for Loan Losses - Originated loan and lease portfolio | ||||||||||||
| Balance at beginning of period | $ | 31,981 | $ | 31,312 | $ | 30,450 | $ | 29,428 | $ | 28,690 | $ | 28,156 |
| Provision for loan and lease losses | 978 | 872 | 1,185 | 173 | 769 | 2,467 | ||||||
| Net loan and lease (recoveries) charge-offs | (9) | 203 | 323 | (849) | 31 | (689) | ||||||
| Allowance for loan and lease losses (originated | 32,968 | 31,981 | 31,312 | 30,450 | 29,428 | 31,312 | ||||||
| loan portfolio) - balance at end of period | $ | $ | $ | $ | $ | $ | ||||||
| Allowance for Loan Losses - Acquired loan and lease portfolio | ||||||||||||
| Balance at beginning of period | $ | 549 | $ | 692 | $ | 515 | $ | 663 | $ | 795 | $ | 841 |
| Provision (Credit) for loan and lease losses | 0 | (17) | 348 | 108 | 153 | 478 | ||||||
| Net loan and lease charge-offs | 392 | 126 | 171 | 256 | 285 | 627 | ||||||
| Allowance for loan and lease losses (acquired | ||||||||||||
| loan portfolio) - balance at end of period | 157 | 549 | 692 | 515 | 663 | 692 | ||||||
| Total allowance for loan and lease losses | $ | 33,125 | $ | 32,530 | $ | 32,004 | $ | 30,965 | $ | 30,091 | $ | 32,004 |
| Loan Classification - Originated Portfolio | ||||||||||||
| Special Mention | $ | 20,639 | $ | 20,388 | $ | 19,657 | $ | 25,133 | $ | 25,706 | $ | 19,657 |
| Substandard | 16,462 | 18,026 | 18,186 | 19,937 | 21,600 | 18,186 | ||||||
| Loan Classification - Acquired Portfolio | ||||||||||||
| Special Mention | 550 | 534 | 540 | 1,446 | 1,589 | 540 | ||||||
| Substandard | 13,975 | 17,445 | 17,007 | 23,683 | 21,932 | 17,007 | ||||||
| Loan Classifications - Total Portfolio | ||||||||||||
| Special Mention | 21,189 | 20,922 | 20,197 | 26,579 | 27,295 | 20,197 | ||||||
| Substandard | 30,437 | 35,471 | 35,193 | 43,620 | 43,532 | 35,193 | ||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
| RATIO ANALYSIS | Quarter-Ended | Year-Ended | ||||||||||
| Credit Quality | Jun-16 | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Dec-15 | ||||||
| Nonperforming loans and leases/total loans and leases (7) | 0.45% | 0.54% | 0.58% | 0.64% | 0.61% | 0.58% | ||||||
| Nonperforming assets/total assets | 0.32% | 0.39% | 0.43% | 0.47% | 0.44% | 0.43% | ||||||
| Allowance for originated loan and lease losses/total originated loans and leases | 0.93% | 0.95% | 0.95% | 0.97% | 0.98% | 0.95% | ||||||
| Allowance/nonperforming loans and leases | 183.01% | 156.88% | 146.74% | 133.18% | 139.36% | 146.74% | ||||||
| Net loan and lease losses (recoveries) annualized/total average loans and leases | 0.04% | 0.03% | 0.05% | (0.07%) | 0.04% | (0.00%) | ||||||
| Capital Adequacy (period-end) | ||||||||||||
| Tier 1 capital / average assets * | 8.79% | 8.79% | 8.82% | 8.89% | 8.92% | 8.82% | ||||||
| Total capital / risk-weighted assets * | 12.95% | 13.18% | 13.03% | 13.29% | 13.46% | 13.03% | ||||||
| Profitability | ||||||||||||
| Return on average assets * | 1.00% | 0.99% | 0.98% | 1.05% | 1.29% | 1.07% | ||||||
| Return on average equity * | 10.79% | 10.77% | 10.63% | 11.29% | 13.79% | 11.51% | ||||||
| Net interest margin (TE) * | 3.36% | 3.36% | 3.35% | 3.35% | 3.37% | 3.38% | ||||||
| * Quarterly ratios have been annualized | ||||||||||||
NON-GAAP MEASURES
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measure provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See "Tompkins Financial Corporation - Summary Financial Data (Unaudited)" tables for Non-GAAP related calculations.
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
| Net income available to common shareholders | $ | 14,571 | $ | 14,180 | $ | 13,854 | $ | 14,497 | $ | 17,390 | $ | 58,421 |
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 224 | 229 | 229 | 189 | 234 | 834 | ||||||
| Adjusted net income available to common shareholders | 14,347 | 13,951 | 13,625 | 14,308 | 17,156 | 57,587 | ||||||
| Gain on pension plan curtailment (net of tax) | 0 | 0 | 0 | 0 | (3,602) | (3,602) | ||||||
| Net operating income (Non-GAAP) | 14,347 | 13,951 | 13,625 | 14,308 | 13,554 | 53,985 | ||||||
| Weighted average shares outstanding (diluted) | 14,975,115 | 14,905,919 | 14,869,103 | 14,866,735 | 14,878,107 | 14,863,026 | ||||||
| Adjusted diluted earnings per share (Non-GAAP) (9) | $ | 0.96 | $ | 0.94 | $ | 0.92 | $ | 0.96 | $ | 0.91 | $ | 3.63 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure - Tangible Book Value Per Share
| Jun-16 | Mar-16 | Dec-15 | Sep-15 | Jun-15 | Dec-15 | |||||||
| Total common equity | $ | 552,918 | $ | 538,408 | $ | 515,014 | $ | 516,409 | $ | 503,877 | $ | 515,014 |
| Less: Goodwill and intangibles (10) | 104,636 | 104,987 | 103,347 | 104,349 | 104,845 | 103,347 | ||||||
| Tangible common equity | 448,282 | 433,421 | 411,667 | 412,060 | 399,032 | 411,667 | ||||||
| Ending shares outstanding | 15,035,369 | 15,023,776 | 14,979,684 | 14,905,576 | 14,942,107 | 14,979,684 | ||||||
| Tangible book value per share (Non-GAAP) | $ | 29.82 | $ | 28.85 | $ | 27.48 | $ | 27.64 | $ | 26.71 | $ | 27.48 |
| Non-GAAP Disclosure - YTD adjusted diluted earnings per share | ||||||||||||
| Jun-16 | Jun-15 | |||||||||||
| Net income available to common shareholders | $ | 28,751 | $ | 30,070 | ||||||||
| Less: Dividends and undistributed earnings allocated to unvested restricted stock awards | 453 | 420 | ||||||||||
| Adjusted net income available to common shareholders | 28,298 | 29,650 | ||||||||||
| Gain on pension plan curtailment | 0 | (3,602) | ||||||||||
| Net operating income (Non-GAAP) | 28,298 | 26,048 | ||||||||||
| Weighted average shares outstanding (diluted) | 14,940,518 | 14,858,127 | ||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 1.89 | $ | 1.75 | ||||||||
(1) Federal Reserve peer ratio as of March 31, 2016, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans".
(3)"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) 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, 2015.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(10) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.