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 31, 2015

 

Tompkins Financial Corporation Reports Record Second Quarter Earnings

 

ITHACA, NY – Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported record net income of $17.4 million for the second quarter of 2015, an increase of 33.1% from the $13.1 million reported for the same period in 2014. Diluted earnings per share were $1.15 for the quarter, up from $0.87 per share for the second quarter last year. Results for the current quarter were helped by a one-time curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan. If this gain were excluded from the current period results, diluted earnings per share would have been $0.91, which would still reflect the best second quarter in Company history. The impact of this non-recurring item on the Company’s financial statements is more fully detailed in the non-GAAP disclosure tables included with this press release.

For the year-to-date period ended June 30, 2015, net income was $30.1 million, an increase of 17.3% from the $25.6 million reported for the same period in 2014. Diluted earnings per share were $2.00 for the year-to-date period ended June 30, 2015, up 16.3% compared to the $1.72 per share reported for the same period last year. These results were also aided by the curtailment gain described above. If this gain were excluded from year to date results, net income for the period would have been $26.0 million for the first six months of 2015, and diluted earnings per share would have been $1.75. Refer to non-GAAP disclosures for additional details.

Selected highlights for second quarter:

§

Net interest income of $41.3 million was up 2.0% compared to the second quarter of 2014.

§

Total loans of $3.5 billion were up 9.1% over June 30, 2014.

 

 

§

Credit quality improved with non-performing assets representing 0.44% of total assets, which is the lowest this percentage has been over the past 25 quarters. The percentage is down from 0.66% one year ago and remains well below the most recent Federal Reserve peer average1 of 0.88%.

§

Annualized return on average equity was 13.79% for the second quarter of 2015, compared to 10.91% reported for the second quarter of 2014, the second quarter of 2015 included a $3.6 million (net of tax) gain on the pension plan curtailment.

§

Tangible book value per share is up 4.1% from the second quarter of 2014. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

President and CEO, Stephen S. Romaine said “It is very exciting to report on another record quarter for earnings performance. When compared to the same period last year, positive trends that contributed to these results included: growth in loans, deposits, insurance revenue, and card related revenue, as well as continued excellent asset quality.”

NET INTEREST INCOME

Net interest income of $41.3 million for the second quarter of 2015 increased 2.0% compared to the same period in 2014, and was in line with the first quarter of 2015. For the year-to-date period, net interest income of $82.6 million was up 2.5% from the prior year. The net interest margin for the second quarter of 2015 was 3.37%, compared to 3.55% for the same period in 2014. For the year to date, net interest margin was 3.41% in 2015, compared to 3.58% in 2014.

NONINTEREST INCOME

Noninterest income represented 31.5% of total revenue for the second quarter of 2015, compared to 30.4% of total revenue in the second quarter of 2014. Noninterest income was $19.0 million for the second quarter of 2015, up 7.0% compared to the second quarter of 2014, and up 7.5% compared to first quarter 2015. The increase over the same quarter last year included improvements in insurance revenue and card services income. Growth during the quarter also benefited from $723,000 of gains on the sale of available-for-sale securities and $924,000 of gains on the sale of other real estate owned (OREO). For the first six months of 2015, noninterest income was up $1.5 million, or 4.1% over the same period in 2014.

NONINTEREST EXPENSE

Noninterest expense was $32.9 million for the second quarter of 2015, down 15.4% compared to the second quarter of 2014. For the year-to-date period, noninterest expense was down 5.9% from the same period in 2014. The decrease in noninterest expense for both the quarter-to-date and year-to-date periods was mainly due to a $6.0 million gain on a pension plan curtailment recorded in the second quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan which has been replaced with a more flexible defined contribution pension plan.

 

 

ASSET QUALITY

Asset quality remains strong. Substandard and Special Mention loans declined by $28.3 million from the same period last year, and by $10.1 million from the previous quarter.

Provision for loan and lease losses was $922,000 for the second quarter of 2015, up $855,000 compared to the second quarter of 2014. The increase over the second quarter of 2014 reflects increased provision expense primarily due to loan growth.

The Company’s allowance for originated loan and lease losses totaled $29.4 million at June 30, 2015, which represented 0.98% of total originated loans, compared to 1.02% at June 30, 2014 and 0.99% at year-end 2014. The allowance for loan and lease losses covered 139.36% of nonperforming loans and leases as of June 30, 2015, compared to 103.08% at June 30, 2014 and 128.43% at year-end 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.92% is up from 8.79% at June 30, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.48%, up from 7.40% reported at December 31, 2014.

 

 

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.

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 measures 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.

“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				06/30/2015		12/31/2014
Cash and noninterest bearing balances due from banks			$	58,237	$	53,921
Interest bearing balances due from banks				1,902		2,149
	Cash and Cash Equivalents			60,139		56,070
Trading securities, at fair value				8,153		8,992
Available-for-sale securities, at fair value (amortized cost of $1,381,440 at June 30,
	2015 and $1,397,458 at December 31, 2014)			1,382,484		1,402,236
Held-to-maturity securities, at amortized cost (fair value of $146,076 at June 30, 2015
	and $89,036 at December 31, 2014)			145,737		88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2)				3,013,968		2,839,974
Acquired loans and leases, covered (3)				15,771		19,319
Acquired loans and leases, non-covered (3)				492,192		533,995
Less:  Allowance for loan and lease losses				30,091		28,997
	Net Loans and Leases			3,491,840		3,364,291
FDIC indemnification asset				634		1,903
Federal Home Loan Bank stock				27,128		21,259
Bank premises and equipment, net				59,451		59,800
Corporate owned life insurance				74,894		73,725
Goodwill				92,243		92,243
Other intangible assets, net				13,569		14,649
Accrued interest and other assets				79,864		86,225
	Total Assets		$	5,436,136	$	5,269,561
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,314,510		2,247,708
	Time			906,345		898,081
	Noninterest bearing			983,234		1,023,365
	Total Deposits			4,204,089		4,169,154
Federal funds purchased and securities sold under agreements to repurchase				131,063		147,037
Other borrowings, including certain amounts at fair value of $10,817 at June 30, 2015
	and $10,961 at December 31, 2014			493,326		356,541
Trust preferred debentures				37,423		37,337
Other liabilities				64,841		69,909
	Total Liabilities		$	4,930,742	$	4,779,978
EQUITY
Tompkins Financial Corporation shareholders’ equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,978,017 at June 30, 2015; and 14,931,354 at December 31, 2014		1,498		1,493
	Additional paid-in capital			351,549		348,889
	Retained earnings			181,955		165,160
	Accumulated other comprehensive loss			(27,621)		(24,011)
	Treasury stock, at cost – 111,467 shares at June 30, 2015, and 111,436 shares
		at December 31, 2014		(3,504)		(3,400)
	Total Tompkins Financial Corporation Shareholders’ Equity			503,877		488,131
Noncontrolling interests				1,517		1,452
	Total Equity		$	505,394	$	489,583
	Total Liabilities and Equity		$	5,436,136	$	5,269,561

 

 

 

 TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

			Three Months Ended				Six Months Ended
(In thousands, except per share data) (Unaudited)			06/30/2015		06/30/2014		06/30/2015		06/30/2014
INTEREST AND DIVIDEND INCOME
Loans		$	38,059	$	37,348	$	75,435	$	74,302
Due from banks			1		0		2		1
Trading securities			90		107		184		219
Available-for-sale securities			7,374		7,984		15,188		15,920
Held-to-maturity securities			674		186		1,270		338
Federal Home Loan Bank stock and Federal Reserve Bank stock			225		194		572		404
Total Interest and Dividend Income			46,423		45,819		92,651		91,184
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more			354		328		689		635
Other deposits			2,267		2,449		4,553		4,884
Federal funds purchased and securities sold under agreements to
repurchase			665		763		1,335		1,580
Trust preferred debentures			573		571		1,143		1,141
Other borrowings			1,234		1,192		2,373		2,401
Total Interest Expense			5,093		5,303		10,093		10,641
Net Interest Income			41,330		40,516		82,558		80,543
Less:  Provision for loan and lease losses			922		67		1,131		810
Net Interest Income After Provision for Loan and Lease Losses			40,408		40,449		81,427		79,733
NONINTEREST INCOME
Insurance commissions and fees			7,407		7,046		14,777		14,303
Investment services income			3,838		3,902		7,844		7,912
Service charges on deposit accounts			2,244		2,388		4,402		4,504
Card services income			2,025		1,920		3,843		4,032
Mark-to-market loss on trading securities			(74)		(34)		(137)		(93)
Mark-to-market gain on liabilities held at fair value			104		63		145		128
Other income			2,695		2,400		4,721		4,239
Gain on sale of available-for-sale securities			723		35		1,013		129
Total Noninterest Income			18,962		17,720		36,608		35,154
NONINTEREST EXPENSES
Salaries and wages			18,394		17,660		35,962		34,306
Pension and other employee benefits			(519)		4,978		5,475		11,023
Net occupancy expense of premises			3,073		3,066		6,412		6,326
Furniture and fixture expense			1,483		1,459		2,933		2,796
FDIC insurance			748		735		1,489		1,546
Amortization of intangible assets			500		525		1,007		1,052
Other operating expense			9,239		10,505		19,332		20,089
Total Noninterest Expenses			32,918		38,928		72,610		77,138
Income Before Income Tax Expense			26,452		19,241		45,425		37,749
Income Tax Expense			9,030		6,148		15,290		12,054
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			17,422		13,093		30,135		25,695
Less:  Net income attributable to noncontrolling interests			32		32		65		65
Net Income Attributable to Tompkins Financial Corporation		$	17,390	$	13,061	$	30,070	$	25,630
Basic Earnings Per Share		$	1.16	$	0.88	$	2.01	$	1.73
Diluted Earnings Per Share		$	1.15	$	0.87	$	2.00	$	1.72

 

 

 

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

 

				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				June 30, 2015					June 30, 2015					June 30, 2014
				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		$	1,824	$	1	0.22%	$	1,607	$	2	0.25%	$	885	$	1	0.23%
	Securities (4)
		U.S. Government securities		1,450,039		7,513	2.08%		1,442,846		15,366	2.15%		1,301,015		14,877	2.31%
		Trading securities		8,453		90	4.27%		8,654		184	4.29%		10,584		219	4.17%
		State and municipal (5)		86,710		832	3.85%		87,502		1,703	3.92%		89,964		2,127	4.77%
		Other securities (5)		3,752		30	3.21%		3,758		60	3.22%		4,729		76	3.24%
		Total securities		1,548,954		8,465	2.19%		1,542,760		17,313	2.26%		1,406,292		17,299	2.48%
	FHLBNY and FRB stock			23,927		225	3.76%		22,355		572	5.15%		20,670		404	3.94%
	Total loans and leases, net of unearned income (5)(6)			3,463,881		38,680	4.48%		3,431,282		76,635	4.50%		3,206,950		75,161	4.73%
	Total interest-earning assets			5,038,586		47,371	3.77%		4,998,004		94,522	3.81%		4,634,797		92,865	4.04%
Other assets				352,528					355,264					371,552
	Total assets			5,391,114					5,353,268					5,006,349
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,326,361		924	0.16%		2,337,605		1,914	0.17%		2,272,478		2,211	0.20%
		Time deposits		917,986		1,697	0.74%		912,016		3,328	0.74%		895,073		3,308	0.75%
		Total interest-bearing deposits		3,244,347		2,621	0.32%		3,249,621		5,242	0.33%		3,167,551		5,519	0.35%
Federal funds purchased & securities sold under
		agreements to repurchase		131,324		665	2.03%		136,811		1,335	1.97%		153,939		1,580	2.07%
Other borrowings				422,364		1,234	1.17%		385,233		2,373	1.24%		263,633		2,401	1.84%
Trust preferred debentures				37,395		573	6.15%		37,374		1,143	6.17%		37,205		1,141	6.18%
	Total interest-bearing liabilities			3,835,430		5,093	0.53%		3,809,039		10,093	0.53%		3,622,328		10,641	0.59%
Noninterest bearing deposits				983,199					978,233					856,161
Accrued expenses and other liabilities				66,818					64,615					53,539
	Total liabilities			4,885,447					4,851,887					4,532,028
Tompkins Financial Corporation Shareholders’ equity				504,166					499,896					472,836
Noncontrolling interest				1,501					1,485					1,485
	Total equity			505,667					501,381					474,321
	Total liabilities and equity		$	5,391,114				$	5,353,268				$	5,006,349
Interest rate spread							3.24%					3.28%					3.45%
	Net interest income/margin on earning assets					42,278	3.37%				84,429	3.41%				82,224	3.58%
Tax Equivalent Adjustment						(948)					(1,871)					(1,681)
	Net interest income per consolidated financial statements				$	41,330				$	82,558				$	80,543

 

 

 

 Tompkins Financial Corporation - Summary Financial Data (Unaudited)

 

(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Jun-15		Mar-15		Dec-14		Sep-14		Jun-14		Dec-14
Period End Balance Sheet
Securities	$	1,536,374	$	1,555,597	$	1,499,396	$	1,431,837	$	1,420,226	$	1,499,396
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,013,968		2,898,533		2,839,974		2,674,971		2,610,289		2,839,974
Acquired loans and leases (3)		507,963		529,024		553,314		582,498		618,679		553,314
Allowance for  loan and lease losses		30,091		29,485		28,997		27,786		27,517		28,997
Total assets		5,436,136		5,357,533		5,269,561		5,090,919		5,057,821		5,269,561
Total deposits		4,204,089		4,282,766		4,169,154		4,212,860		4,044,389		4,169,154
Federal funds purchased and securities sold under agreements to repurchase		131,063		135,769		147,037		128,368		144,796		147,037
Other borrowings		493,326		330,850		356,541		166,509		287,158		356,541
Trust preferred debentures		37,423		37,380		37,337		37,298		37,254		37,337
Total common equity		503,877		502,811		488,131		489,061		487,720		488,131
Total equity		505,394		504,296		489,583		490,611		489,237		489,583
Average Balance Sheet
Average earning assets	$	5,038,586	$	4,956,972	$	4,799,027	$	4,695,860	$	4,666,722	$	4,691,582
Average assets		5,391,114		5,315,002		5,193,347		5,058,608		5,030,395		5,066,655
Average interest-bearing liabilities		3,835,430		3,782,355		3,668,311		3,587,673		3,620,130		3,625,184
Average equity		505,667		497,047		495,531		489,920		480,063		483,599
Share data
Weighted average shares outstanding (basic)		14,751,844		14,701,397		14,639,631		14,711,709		14,709,881		14,676,622
Weighted average shares outstanding (diluted)		14,878,107		14,837,935		14,765,855		14,795,343		14,821,191		14,789,624
Period-end shares outstanding		14,942,107		14,962,079		14,895,444		14,794,092		14,853,439		14,895,444
Common equity book value per share	$	33.72	$	33.61	$	32.77	$	33.06	$	32.84	$	32.77
Tangible book value per share (Non-GAAP)	$	26.71	$	26.56	$	25.66	$	25.87	$	25.65	$	25.66
Income Statement
Net interest income	$	41,330	$	41,228	$	41,692	$	41,575	$	40,516	$	163,810
Provision (Credit) for loan/lease losses		922		209		1,555		(59)		67		2,306
Noninterest income		18,962		17,646		18,056		17,555		17,720		70,765
Noninterest expense		32,918		39,692		39,018		38,537		38,928		154,693
Income tax expense		9,030		6,260		6,453		6,897		6,148		25,404
Net income attributable to Tompkins Financial Corporation		17,390		12,680		12,689		13,722		13,061		52,041
Noncontrolling interests		32		33		33		33		32		131
Basic earnings per share (9)	$	1.16	$	0.85	$	0.86	$	0.92	$	0.88	$	3.51
Diluted earnings per share (9)	$	1.15	$	0.84	$	0.85	$	0.92	$	0.87	$	3.48
Nonperforming Assets
Originated nonaccrual loans and leases	$	14,566	$	13,811	$	14,299	$	16,319	$	16,918	$	14,299
Acquired nonaccrual loans and leases		5,030		4,683		4,729		4,998		5,907		4,729
Originated loans and leases 90 days past due and accruing		58		236		106		395		543		106
Troubled debt restructurings not included above		1,939		1,589		3,444		3,800		3,327		3,444
Total nonperforming loans and leases		21,593		20,319		22,578		25,512		26,695		22,578
OREO (8)		2,570		5,816		5,683		6,533		6,795		5,683
Total nonperforming assets	$	24,163	$	26,135	$	28,261	$	32,045	$	33,490	$	28,261

 

 

 

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

 

		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Jun-15		Mar-15		Dec-14		Sep-14		Jun-14		Dec-14
Loans and leases 30-89 days past due and
accruing (2)	$	3,315	$	2,438	$	6,849	$	3,811	$	5,221	$	6,849
Loans and leases 90 days past due and accruing (2)		58		236		106		395		543		106
Total originated loans and leases past due and accruing (2)		3,373		2,674		6,955		4,206		5,764		6,955
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	455	$	547	$	533	$	0	$	0	$	533
Covered loans and leases 90 days or more past
due and accruing (3)(7)		674		682		914		1,149		904		914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		917		2,546		1,186		736		1,620		1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)		3,031		2,811		2,614		3,171		3,048		2,614
Total acquired loans and leases past due and accruing		5,077		6,586		5,247		5,056		5,572		5,247
Total loans and leases past due and accruing	$	8,450	$	9,260	$	12,202	$	9,262	$	11,336	$	12,202
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	28,690	$	28,156	$	27,185	$	26,752	$	26,661	$	26,700
Provision (Credit) for loan and lease losses		769		340		1,102		(264)		(56)		1,293
Net loan and lease charge-offs (recoveries)		31		(194)		131		(697)		(147)		(163)
Allowance for loan and lease losses (originated		29,428		28,690		28,156		27,185		26,752		28,156
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	795	$	841	$	601	$	765	$	1,353	$	1,270
Provision (Credit) for loan and lease losses		153		(131)		453		205		123		1,013
Net loan and lease charge-offs (recoveries)		285		(85)		213		369		711		1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		663		795		841		601		765		841
Total allowance for loan and lease losses	$	30,091	$	29,485	$	28,997	$	27,786	$	27,517	$	28,997
Loan Classification - Originated Portfolio
Special Mention	$	25,706	$	34,965	$	36,331	$	27,854	$	35,484	$	36,331
Substandard		21,600		19,150		19,970		25,889		21,253		19,970
Loan Classification - Acquired Portfolio
Special Mention		1,589		5,053		5,758		7,605		12,124		5,758
Substandard		21,932		21,752		21,567		24,034		30,273		21,567
Loan Classifications - Total Portfolio
Special Mention		27,295		40,018		42,089		35,459		47,608		42,089
Substandard		43,532		40,902		41,537		49,923		51,526		41,537

 

 

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

 

RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Jun-15		Mar-15		Dec-14		Sep-14		Jun-14		Dec-14
Nonperforming loans and leases/total loans and leases (7)		0.61%		0.59%		0.67%		0.78%		0.83%		0.67%
Nonperforming assets/total assets		0.44%		0.49%		0.54%		0.63%		0.66%		0.54%
Allowance for originated loan and lease losses/total originated loans and leases		0.98%		0.99%		0.99%		1.02%		1.02%		0.99%
Allowance/nonperforming loans and leases		139.36%		145.11%		128.43%		108.92%		103.08%		128.43%
Net loan and lease losses (recoveries) annualized/total average loans and leases		0.04%		(0.03%)		0.04%		(0.04%)		0.07%		0.04%
Capital Adequacy (period-end)
Tier 1 capital / average assets *		8.92%		8.85%		8.75%		8.85%		8.79%		8.75%
Total capital / risk-weighted assets *		13.46%		13.37%		13.60%		13.92%		13.92%		13.60%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
Profitability
Return on average assets *		1.29%		0.97%		0.97%		1.08%		1.04%		1.03%
Return on average equity *		13.79%		10.35%		10.16%		11.11%		10.91%		10.76%
Net interest margin (TE) *		3.37%		3.45%		3.53%		3.58%		3.55%		3.57%
* Quarterly ratios have been annualized
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Net income available to common shareholders	$	17,390	$	12,680	$	12,689	$	13,722	$	13,061	$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		234		182		150		119		118		503
Adjusted net income available to common shareholders		17,156		12,498		12,539		13,603		12,943		51,538
Gain on pension plan curtailment (net of tax)		(3,602)		0		0		0		0		0
Net operating income (Non-GAAP)		13,554		12,498		12,539		13,603		12,943		51,538
Weighted average shares outstanding (diluted)		14,878,107		14,837,935		14,765,855		14,795,343		14,821,191		14,789,624
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.91	$	0.84	$	0.85	$	0.92	$	0.87	$	3.48
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity	$	503,877	$	502,811	$	488,131	$	489,061	$	487,720	$	488,131
Less:  Goodwill and intangibles (10)		104,845		105,344		105,852		106,377		106,690		105,852
Tangible common equity		399,032		397,467		382,279		382,684		381,030		382,279
Total assets		5,436,136		5,357,533		5,269,561		5,090,919		5,057,821		5,269,561
Less:  Goodwill and intangibles (10)		104,845		105,344		105,852		106,377		106,690		105,852
Tangible assets		5,331,291		5,252,189		5,163,709		4,984,542		4,951,131		5,163,709
Tangible common equity / tangible assets (Non-GAAP)		7.48%		7.57%		7.40%		7.68%		7.70%		7.40%

 

 

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

 

Non-GAAP Disclosure - Return on Average		Quarter-Ended									Year-Ended
Tangible Common Equity		Jun-15		Mar-15		Dec-14		Sep-14		Jun-14		Dec-14
Net income available to common shareholders	$	17,390	$	12,680	$	12,689	$	13,722	$	13,061	$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		234		182		150		119		118		503
Adjusted net income available to common shareholders		17,156		12,498		12,539		13,603		12,943		51,538
Gain on pension plan curtailment (net of tax)		(3,602)		0		0		0		0		0
Net operating income (Non-GAAP)		13,554		12,498		12,539		13,603		12,943		51,538
Amortization of intangibles (net of tax)		300		304		315		311		315		1,257
Adjusted net operating income (Non-GAAP)		13,854		12,802		12,854		13,914		13,258		52,795
Average common equity		504,166		495,579		493,986		488,386		478,561		482,087
Less:  Average goodwill and intangibles (10)		105,130		105,644		106,151		106,471		106,988		106,748
Average tangible common equity capital		399,036		389,935		387,835		381,915		371,573		375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)		13.93%		13.32%		13.15%		14.46%		14.31%		14.07%
Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity	$	503,877	$	502,811	$	488,131	$	489,061	$	487,720	$	488,131
Less:  Goodwill and intangibles (10)		104,845		105,344		105,852		106,377		106,690		105,852
Tangible common equity		399,032		397,467		382,279		382,684		381,030		382,279
Ending shares outstanding		14,942,107		14,962,079		14,895,444		14,794,092		14,853,439		14,895,444
Tangible book value per share (Non-GAAP)	$	26.71	$	26.56	$	25.66	$	25.87	$	25.65	$	25.66
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
			Jun-15		Jun-14
Net income available to common shareholders			$	30,070	$	25,630
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards				420		234
Adjusted net income available to common shareholders				29,650		25,396
Gain on pension plan curtailment				(3,602)		0
Net operating income (Non-GAAP)				26,048		25,396
Weighted average shares outstanding (diluted)				14,858,127		14,798,462
Adjusted diluted earnings per share (Non-GAAP)			$	1.75	$	1.72

 

(1) Federal Reserve peer ratio as of March 31, 2015, 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, 2014.

(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.