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, October 30, 2015

 

Tompkins Financial Corporation Reports Record Third Quarter Earnings

 

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

Tompkins Financial Corporation reported diluted earnings per share of $0.96 for the third quarter of 2015, representing the best third quarter in Company history and an increase of 4.35% over $0.92 reported for the third quarter of 2014. Net income of $14.5 million for the third quarter of 2015, was up 5.6% from the $13.7 million reported for the same period in 2014.

For the year-to-date period ended September 30, 2015, diluted earnings per share were $2.96, reflecting an increase of 12.1% over the $2.64 reported for September 30, 2014. Year to date net income was $44.6 million, an increase of 13.3% from the $39.4 million reported for the same period in 2014. Year to date results were helped by a one-time curtailment gain of $3.6 million after tax ($0.24 per share), recognized in the second quarter of 2015, related to changes to the Company’s pension plan. If this gain was excluded from current year to date net income, diluted earnings per share would have been $2.72. 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.

President and CEO, Stephen S. Romaine said "We are very pleased to report on record earnings performance for the third quarter of 2015. Continued growth in loans and deposits contributed to our success during the quarter, as earnings improved despite the challenging interest rate environment that continues to pressure net interest margin.”

 

 

Selected highlights for third quarter:

§

Return on average equity was 11.29% for the quarter, up from 11.11% for the third quarter of 2014.

§

Net interest income of $42.4 million was up 2.0% compared to the third quarter of 2014.

§

Total loans of $3.6 billion were up 11.6% over September 30, 2014.

§

Noninterest-bearing deposits of $1.1 billion were up 14.5% over the same period in 2014.

§

Tangible book value per share increased 6.8% from the third quarter of 2014. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $42.4 million for the third quarter of 2015 reflected an increase of 2.0% when compared to the same period in 2014, despite a decline in net interest margin to 3.35% in the current period, down from 3.58% for the third quarter of 2014. Offsetting the decline in net interest margin was solid balance sheet growth, which included a 10.3% increase in average loans from the same quarter last year, and a 13.7% increase in average noninterest-bearing deposits over the same period.

For the year-to-date period, net interest income of $124.9 million was up 2.3% from the prior year, while net interest margin declined to 3.39% in 2015, compared to 3.58% in 2014.

NONINTEREST INCOME

Noninterest income was $17.4 million for the third quarter of 2015, and was in line with same period in 2014. Year-to-date noninterest income of $54.0 million was 2.5% ahead of the $52.7 million reported for September 30, 2014, and included gains on the sale of other real estate owned totaling $924,000 for 2015.

Noninterest income represented 29.1% of total revenue for the third quarter of 2015, compared to 29.7% for the same period in 2014. For the year-to-date period ending September 30, 2015, noninterest income represented 30.2% of total revenue, which was in line with the same period in 2014.

NONINTEREST EXPENSE

Noninterest expense was $37.9 million for the third quarter of 2015, down 1.7% compared to the third quarter of 2014. For the year-to-date period, noninterest expense was down 4.5% from the same period in 2014. The decrease in noninterest expense for the year-to-date period was mainly due to a $6.0 million gain on a pension plan curtailment recorded in the third 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 in the third quarter of 2015. Nonperforming assets as a percentage of total assets represented 0.47% at September 30, 2015, down from 0.63% at September 30, 2014. Despite a modest increase from the 0.44% reported for the immediate prior quarter, the ratio remains well below the most recent Federal Reserve Board Peer Group Average1 of 0.80%. Additionally, substandard and special mention loans declined by $15.2 million from the same period last year, and by $628,000 from the previous quarter.

Provision for loan and lease losses was $281,000 for the third quarter of 2015, up $340,000 from the negative provision of $59,000 reported for third quarter of 2014. The increased provision expense over the third quarter of 2014 is primarily due to growth in the loan portfolio.

The Company’s allowance for loan and lease losses totaled $31.0 million at September 30, 2015. The allowance represented 0.97% of total originated loans at September 30, 2015, compared to 0.99% at year-end 2014. The allowance for loan and lease losses covered 133.18% of nonperforming loans and leases as of September 30, 2015, compared to 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 8.89% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.51%, 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				09/30/2015		12/31/2014
Cash and noninterest bearing balances due from banks			$	105,074	$	53,921
Interest bearing balances due from banks				2,019		2,149
	Cash and Cash Equivalents			107,093		56,070
Trading securities, at fair value				7,749		8,992
Available-for-sale securities, at fair value (amortized cost of $1,378,138 at September 30,
	2015 and $1,397,458 at December 31, 2014)			1,388,283		1,402,236
Held-to-maturity securities, at amortized cost (fair value of $149,112 at September 30, 2015
	and $89,036 at December 31, 2014)			146,300		88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2)				3,149,386		2,839,974
Acquired loans and leases, covered (3)				15,576		19,319
Acquired loans and leases, non-covered (3)				469,351		533,995
Less:  Allowance for loan and lease losses				30,965		28,997
	Net Loans and Leases			3,603,348		3,364,291
FDIC indemnification asset				334		1,903
Federal Home Loan Bank stock				23,562		21,259
Bank premises and equipment, net				60,060		59,800
Corporate owned life insurance				75,368		73,725
Goodwill				92,243		92,243
Other intangible assets, net				13,028		14,649
Accrued interest and other assets				77,350		86,225
	Total Assets		$	5,594,718	$	5,269,561
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,447,841		2,247,708
	Time			877,422		898,081
	Noninterest bearing			1,111,810		1,023,365
	Total Deposits			4,437,073		4,169,154
Federal funds purchased and securities sold under agreements to repurchase				134,941		147,037
Other borrowings, including certain amounts at fair value of $10,736 at September 30, 2015
	and $10,961 at December 31, 2014			398,946		356,541
Trust preferred debentures				37,466		37,337
Other liabilities				68,333		69,909
	Total Liabilities		$	5,076,759	$	4,779,978
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,941,486 at September 30, 2015; and 14,931,354 at December 31, 2014		1,494		1,493
	Additional paid-in capital			350,397		348,889
	Retained earnings			190,175		165,160
	Accumulated other comprehensive loss			(22,028)		(24,011)
	Treasury stock, at cost – 113,787 shares at September 30, 2015, and 111,436 shares
		at December 31, 2014		(3,629)		(3,400)
	Total Tompkins Financial Corporation Shareholders’ Equity			516,409		488,131
Noncontrolling interests				1,550		1,452
	Total Equity		$	517,959	$	489,583
	Total Liabilities and Equity		$	5,594,718	$	5,269,561

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended				Nine Months Ended
(In thousands, except per share data) (Unaudited)			09/30/2015		09/30/2014		09/30/2015		09/30/2014
INTEREST AND DIVIDEND INCOME
Loans		$	39,235	$	38,298	$	114,670	$	112,601
Due from banks			1		0		3		2
Trading securities			86		102		270		321
Available-for-sale securities			7,031		7,718		22,219		23,637
Held-to-maturity securities			915		288		2,185		626
Federal Home Loan Bank stock and Federal Reserve Bank stock			262		212		834		616
Total Interest and Dividend Income			47,530		46,618		140,181		137,803
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more			369		387		1,058		1,022
Other deposits			2,284		2,439		6,837		7,324
Federal funds purchased and securities sold under agreements to
repurchase			685		683		2,020		2,263
Trust preferred debentures			583		573		1,726		1,714
Other borrowings			1,223		961		3,596		3,362
Total Interest Expense			5,144		5,043		15,237		15,685
Net Interest Income			42,386		41,575		124,944		122,118
Less:  Provision for loan and lease losses			281		(59)		1,412		751
Net Interest Income After Provision for Loan and Lease Losses			42,105		41,634		123,532		121,367
NONINTEREST INCOME
Insurance commissions and fees			7,564		7,520		22,341		21,823
Investment services income			3,674		3,636		11,518		11,549
Service charges on deposit accounts			2,410		2,506		6,812		7,010
Card services income			2,001		1,936		5,844		5,968
Mark-to-market loss on trading securities			(69)		(87)		(206)		(181)
Mark-to-market gain on liabilities held at fair value			81		132		226		260
Other income			1,669		1,892		6,390		6,129
Gain on sale of available-for-sale securities			92		20		1,105		151
Total Noninterest Income			17,422		17,555		54,030		52,709
NONINTEREST EXPENSES
Salaries and wages			18,357		17,553		54,319		51,859
Pension and other employee benefits			5,368		4,941		10,843		15,964
Net occupancy expense of premises			2,891		2,969		9,303		9,296
Furniture and fixture expense			1,532		1,451		4,465		4,247
FDIC insurance			729		682		2,218		2,228
Amortization of intangible assets			496		518		1,503		1,570
Other operating expense			8,509		10,423		27,841		30,511
Total Noninterest Expenses			37,882		38,537		110,492		115,675
Income Before Income Tax Expense			21,645		20,652		67,070		58,401
Income Tax Expense			7,115		6,897		22,405		18,951
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			14,530		13,755		44,665		39,450
Less:  Net income attributable to noncontrolling interests			33		33		98		98
Net Income Attributable to Tompkins Financial Corporation		$	14,497	$	13,722	$	44,567	$	39,352
Basic Earnings Per Share		$	0.97	$	0.92	$	2.98	$	2.65
Diluted Earnings Per Share		$	0.96	$	0.92	$	2.96	$	2.64

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				September 30, 2015					September 30, 2015					September 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		$	1,957	$	1	0.20%	$	1,725	$	3	0.23%	$	782	$	2	0.34%
	Securities (4)
		U.S. Government securities		1,438,436		7,439	2.05%		1,441,360		22,807	2.12%		1,304,141		22,163	2.27%
		Trading securities		8,008		86	4.26%		8,437		270	4.28%		10,327		321	4.16%
		State and municipal (5)		85,554		783	3.63%		86,846		2,486	3.83%		96,992		3,157	4.35%
		Other securities (5)		3,705		31	3.32%		3,740		91	3.25%		4,571		107	3.13%
		Total securities		1,535,703		8,339	2.15%		1,540,383		25,654	2.23%		1,416,031		25,748	2.43%
	FHLBNY and FRB stock			26,556		263	3.93%		23,771		834	4.69%		20,192		616	4.08%
	Total loans and leases, net of unearned income (5)(6)			3,574,449		39,913	4.43%		3,479,528		116,547	4.48%		3,218,371		113,924	4.73%
	Total interest-earning assets			5,138,665		48,516	3.75%		5,045,407		143,038	3.79%		4,655,376		140,290	4.03%
Other assets				347,980					352,808					368,584
	Total assets			5,486,645					5,398,215					5,023,960
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,322,974		949	0.16%		2,332,674		2,863	0.16%		2,265,787		3,276	0.19%
		Time deposits		890,933		1,704	0.76%		904,911		5,032	0.74%		901,283		5,070	0.75%
		Total interest-bearing deposits		3,213,907		2,653	0.33%		3,237,585		7,895	0.33%		3,167,070		8,346	0.35%
Federal funds purchased & securities sold under
		agreements to repurchase		134,620		685	2.02%		136,073		2,020	1.98%		147,775		2,263	2.05%
Other borrowings				470,060		1,223	1.03%		413,819		3,596	1.16%		258,578		3,362	1.74%
Trust preferred debentures				37,438		583	6.18%		37,395		1,726	6.17%		37,227		1,714	6.16%
	Total interest-bearing liabilities			3,856,025		5,144	0.53%		3,824,872		15,237	0.53%		3,610,650		15,685	0.58%
Noninterest bearing deposits				1,052,669					1,003,318					879,691
Accrued expenses and other liabilities				68,433					65,902					54,040
	Total liabilities			4,977,127					4,894,092					4,544,381
Tompkins Financial Corporation Shareholders’ equity				507,984					502,622					478,078
Noncontrolling interest				1,534					1,501					1,501
	Total equity			509,518					504,123					479,579
	Total liabilities and equity		$	5,486,645				$	5,398,215				$	5,023,960
Interest rate spread							3.22%					3.26%					3.45%
	Net interest income/margin on earning assets					43,373	3.35%				127,801	3.39%				124,605	3.58%
Tax Equivalent Adjustment						(987)					(2,857)					(2,487)
	Net interest income per consolidated financial statements				$	42,386				$	124,944				$	122,118

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Sep-15		Jun-15		Mar-15		Dec-14		Sep-14		Dec-14
Period End Balance Sheet
Securities	$	1,542,332	$	1,536,374	$	1,555,597	$	1,499,396	$	1,431,837	$	1,499,396
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,149,386		3,013,968		2,898,533		2,839,974		2,674,971		2,839,974
Acquired loans and leases (3)		484,927		507,963		529,024		553,314		582,498		553,314
Allowance for  loan and lease losses		30,965		30,091		29,485		28,997		27,786		28,997
Total assets		5,594,718		5,436,136		5,357,533		5,269,561		5,090,919		5,269,561
Total deposits		4,437,073		4,204,089		4,282,766		4,169,154		4,212,860		4,169,154
Federal funds purchased and securities sold under agreements to repurchase		134,941		131,063		135,769		147,037		128,368		147,037
Other borrowings		398,946		493,326		330,850		356,541		166,509		356,541
Trust preferred debentures		37,466		37,423		37,380		37,337		37,298		37,337
Total common equity		516,409		503,877		502,811		488,131		489,061		488,131
Total equity		517,959		505,394		504,296		489,583		490,611		489,583
Average Balance Sheet
Average earning assets	$	5,138,665	$	5,038,586	$	4,956,972	$	4,799,027	$	4,695,860	$	4,691,582
Average assets		5,486,645		5,391,114		5,315,002		5,193,347		5,058,608		5,066,655
Average interest-bearing liabilities		3,856,025		3,835,430		3,782,355		3,668,311		3,587,673		3,625,184
Average equity		509,518		505,667		497,047		495,531		489,920		483,599
Share data
Weighted average shares outstanding (basic)		14,739,915		14,751,844		14,701,397		14,639,631		14,711,709		14,676,622
Weighted average shares outstanding (diluted)		14,866,735		14,878,107		14,837,935		14,765,855		14,795,343		14,789,624
Period-end shares outstanding		14,905,576		14,942,107		14,962,079		14,895,444		14,794,092		14,895,444
Common equity book value per share	$	34.65	$	33.72	$	33.61	$	32.77	$	33.06	$	32.77
Tangible book value per share (Non-GAAP)	$	27.64	$	26.71	$	26.56	$	25.66	$	25.87	$	25.66
Income Statement
Net interest income	$	42,386	$	41,330	$	41,228	$	41,692	$	41,575	$	163,810
Provision (Credit) for loan/lease losses		281		922		209		1,555		(59)		2,306
Noninterest income		17,422		18,962		17,646		18,056		17,555		70,765
Noninterest expense		37,882		32,918		39,692		39,018		38,537		154,693
Income tax expense		7,115		9,030		6,260		6,453		6,897		25,404
Net income attributable to Tompkins Financial Corporation		14,497		17,390		12,680		12,689		13,722		52,041
Noncontrolling interests		33		32		33		33		33		131
Basic earnings per share (9)	$	0.97	$	1.16	$	0.85	$	0.86	$	0.92	$	3.51
Diluted earnings per share (9)	$	0.96	$	1.15	$	0.84	$	0.85	$	0.92	$	3.48
Nonperforming Assets
Originated nonaccrual loans and leases	$	14,821	$	14,566	$	13,811	$	14,299	$	16,319	$	14,299
Acquired nonaccrual loans and leases		4,908		5,030		4,683		4,729		4,998		4,729
Originated loans and leases 90 days past due and accruing		57		58		236		106		395		106
Troubled debt restructurings not included above		3,465		1,939		1,589		3,444		3,800		3,444
Total nonperforming loans and leases		23,251		21,593		20,319		22,578		25,512		22,578
OREO (8)		3,188		2,570		5,816		5,683		6,533		5,683
Total nonperforming assets	$	26,439	$	24,163	$	26,135	$	28,261	$	32,045	$	28,261

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Sep-15		Jun-15		Mar-15		Dec-14		Sep-14		Dec-14
Loans and leases 30-89 days past due and
accruing (2)	$	3,550	$	3,315	$	2,438	$	6,849	$	3,811	$	6,849
Loans and leases 90 days past due and accruing (2)		57		58		236		106		395		106
Total originated loans and leases past due and accruing (2)		3,607		3,373		2,674		6,955		4,206		6,955
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	309	$	455	$	547	$	533	$	0	$	533
Covered loans and leases 90 days or more past
due and accruing (3)(7)		508		674		682		914		1,149		914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		1,028		917		2,546		1,186		736		1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7)		2,069		3,031		2,811		2,614		3,171		2,614
Total acquired loans and leases past due and accruing		3,914		5,077		6,586		5,247		5,056		5,247
Total loans and leases past due and accruing	$	7,521	$	8,450	$	9,260	$	12,202	$	9,262	$	12,202
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	29,428	$	28,690	$	28,156	$	27,185	$	26,752	$	26,700
Provision (Credit) for loan and lease losses		173		769		340		1,102		(264)		1,293
Net loan and lease charge-offs (recoveries)		(849)		31		(194)		131		(697)		(163)
Allowance for loan and lease losses (originated		30,450		29,428		28,690		28,156		27,185		28,156
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	663	$	795	$	841	$	601	$	765	$	1,270
Provision (Credit) for loan and lease losses		108		153		(131)		453		205		1,013
Net loan and lease charge-offs (recoveries)		256		285		(85)		213		369		1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		515		663		795		841		601		841
Total allowance for loan and lease losses	$	30,965	$	30,091	$	29,485	$	28,997	$	27,786	$	28,997
Loan Classification - Originated Portfolio
Special Mention	$	25,133	$	25,706	$	34,965	$	36,331	$	27,854	$	36,331
Substandard		19,937		21,600		19,150		19,970		25,889		19,970
Loan Classification - Acquired Portfolio
Special Mention		1,446		1,589		5,053		5,758		7,605		5,758
Substandard		23,683		21,932		21,752		21,567		24,034		21,567
Loan Classifications - Total Portfolio
Special Mention		26,579		27,295		40,018		42,089		35,459		42,089
Substandard		43,620		43,532		40,902		41,537		49,923		41,537

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Sep-15		Jun-15		Mar-15		Dec-14		Sep-14		Dec-14
Nonperforming loans and leases/total loans and leases (7)		0.64%		0.61%		0.59%		0.67%		0.78%		0.67%
Nonperforming assets/total assets		0.47%		0.44%		0.49%		0.54%		0.63%		0.54%
Allowance for originated loan and lease losses/total originated loans and leases		0.97%		0.98%		0.99%		0.99%		1.02%		0.99%
Allowance/nonperforming loans and leases		133.18%		139.36%		145.11%		128.43%		108.92%		128.43%
Net loan and lease losses (recoveries) annualized/total average loans and leases		(0.07%)		0.04%		(0.03%)		0.04%		(0.04%)		0.04%
Capital Adequacy (period-end)
Tier 1 capital / average assets *		8.89%		8.92%		8.85%		8.75%		8.85%		8.75%
Total capital / risk-weighted assets *		13.29%		13.46%		13.37%		13.60%		13.92%		13.60%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
Profitability
Return on average assets *		1.05%		1.29%		0.97%		0.97%		1.08%		1.03%
Return on average equity *		11.29%		13.79%		10.35%		10.16%		11.11%		10.76%
Net interest margin (TE) *		3.35%		3.37%		3.45%		3.53%		3.58%		3.57%
* Quarterly ratios have been annualized
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Net income available to common shareholders	$	14,497	$	17,390	$	12,680	$	12,689	$	13,722	$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		189		234		182		150		119		503
Adjusted net income available to common shareholders		14,308		17,156		12,498		12,539		13,603		51,538
Gain on pension plan curtailment (net of tax)		0		(3,602)		0		0		0		0
Net operating income (Non-GAAP)		14,308		13,554		12,498		12,539		13,603		51,538
Weighted average shares outstanding (diluted)		14,866,735		14,878,107		14,837,935		14,765,855		14,795,343		14,789,624
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.96	$	0.91	$	0.84	$	0.85	$	0.92	$	3.48
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity	$	516,409	$	503,877	$	502,811	$	488,131	$	489,061	$	488,131
Less:  Goodwill and intangibles (10)		104,349		104,845		105,344		105,852		106,377		105,852
Tangible common equity		412,060		399,032		397,467		382,279		382,684		382,279
Total assets		5,594,718		5,436,136		5,357,533		5,269,561		5,090,919		5,269,561
Less:  Goodwill and intangibles (10)		104,349		104,845		105,344		105,852		106,377		105,852
Tangible assets		5,490,369		5,331,291		5,252,189		5,163,709		4,984,542		5,163,709
Tangible common equity / tangible assets (Non-GAAP)		7.51%		7.48%		7.57%		7.40%		7.68%		7.40%

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure - Return on Average		Quarter-Ended									Year-Ended
Tangible Common Equity		Sep-15		Jun-15		Mar-15		Dec-14		Sep-14		Dec-14
Net income available to common shareholders	$	14,497	$	17,390	$	12,680	$	12,689	$	13,722	$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		189		234		182		150		119		503
Adjusted net income available to common shareholders		14,308		17,156		12,498		12,539		13,603		51,538
Gain on pension plan curtailment (net of tax)		0		(3,602)		0		0		0		0
Net operating income (Non-GAAP)		14,308		13,554		12,498		12,539		13,603		51,538
Amortization of intangibles (net of tax)		298		300		304		315		311		1,257
Adjusted net operating income (Non-GAAP)		14,606		13,854		12,802		12,854		13,914		52,795
Average common equity		507,984		504,166		495,579		493,986		488,386		482,087
Less:  Average goodwill and intangibles (10)		104,633		105,130		105,644		106,151		106,471		106,748
Average tangible common equity capital		403,351		399,036		389,935		387,835		381,915		375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)		14.37%		13.93%		13.32%		13.15%		14.46%		14.07%
Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity	$	516,409	$	503,877	$	502,811	$	488,131	$	489,061	$	488,131
Less:  Goodwill and intangibles (10)		104,349		104,845		105,344		105,852		106,377		105,852
Tangible common equity		412,060		399,032		397,467		382,279		382,684		382,279
Ending shares outstanding		14,905,576		14,942,107		14,962,079		14,895,444		14,794,092		14,895,444
Tangible book value per share (Non-GAAP)	$	27.64	$	26.71	$	26.56	$	25.66	$	25.87	$	25.66
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
			Sep-15		Sep-14
Net income available to common shareholders			$	44,567	$	39,352
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards				609		353
Adjusted net income available to common shareholders				43,958		38,999
Gain on pension plan curtailment				(3,602)		0
Net operating income (Non-GAAP)				40,356		38,999
Weighted average shares outstanding (diluted)				14,861,003		14,797,520
Adjusted diluted earnings per share (Non-GAAP)			$	2.72	$	2.64

 

(1) Federal Reserve peer ratio as of June 30, 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.