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 20, 2018

 

Tompkins Financial Corporation Reports Record Year-to-Date and Second Quarter Earnings

 

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported net income of $22.1 million for the second quarter of 2018, an increase of 30.3% from the $16.9 million reported for the same period in 2017. Year-to-date net income was $42.5 million, an increase of $9.9 million, or 30.2% over the same period in 2017.

Diluted earnings per share were $1.43 for the second quarter of 2018, up 28.8% over the second quarter of 2017. For the year-to-date period ended June 30, 2018, diluted earnings per share were $2.76, up 29.6% over the same period in 2017.

President and CEO, Stephen S. Romaine said “We are extremely pleased with our excellent results through the first half of 2018. The second quarter also marked a significant milestone for our Company. In May of this year, we moved our Corporate headquarters to a new building located across the street from our former headquarters location in downtown Ithaca. The move has allowed us to consolidate staff, which were previously located in seven different locations, into a new, modern, and more efficient space. The move has been extremely well received by our employees, clients, and the local community."

SELECTED HIGHLIGHTS FOR THE SECOND QUARTER AND YEAR-TO-DATE PERIODS:

▪

Diluted earnings per share for the quarter and year-to-date periods reflect the highest earnings in Company history for the respective periods.

▪

Quarterly results included certain unusual items that were primarily related to the move of our Corporate headquarters. These included approximately $2.9 million of gains related to sales of real estate and approximately $2.0 million of write downs associated with two leased properties that were recently vacated.

▪

Return on Average Equity was 15.13% for the second quarter and 14.78% for the year-to-date period, which reflect the highest returns in more than 10 years.

▪

Total loans of $4.8 billion were up 8.4% over the same period in 2017, and up 2.6% over December 31, 2017.

NET INTEREST INCOME

Net interest income of $52.7 million for the second quarter of 2018 increased by $2.4 million, or 4.8% compared to the same period in 2017. For the year-to-date period, net interest income was $105.4 million, up $7.1 million, or 7.2% from the same six-month period in 2017.

Net interest income benefited from growth in average loans and noninterest bearing deposits. Average loans were up $414.0 million, or 9.6% in the first six months of 2018, compared to the same six month period in 2017. Average noninterest bearing deposits were up $140.0 million, or 11.6% in the first six months of 2018, versus the same period in 2017. The net interest margin for the second quarter of 2018 was 3.36%, compared to 3.45% reported for the same period in 2017, and 3.42% for the quarter ended March 31, 2018. The decline in margin is largely due to loan growth out-pacing deposit growth, and the recent increases in market interest rates that have resulted in increased funding costs.

NONINTEREST INCOME

Noninterest income represented 28.6% of total revenues in the second quarter of 2018, compared to 25.8% in the same period in 2017, and 27.0% for the first six months of 2018. Noninterest income of $21.2 million was up 21.2% compared to the same period last year. Fee income associated with insurance, wealth management, deposit services, and card services for the second quarter of 2018 were up a combined $406,000 or 2.6% over the same period in 2017. The second quarter of 2018 also included a gain on sale of two properties totaling $2.9 million. The sale of these properties is related to the completion of the new Company headquarters building in the second quarter of 2018.

NONINTEREST EXPENSE

Noninterest expense was $45.0 million for the second quarter of 2018, up $3.4 million, or 8.2%, over the second quarter of 2017. For the year-to-date period, noninterest expense was $88.7 million, up $5.8 million, or 7.0%, from the same period in 2017. The increase in noninterest expense for both the second quarter and year-to-date periods included normal annual increases in salaries and wages. Noninterest expense for the second quarter of 2018 also included a $2.0 million write-down related to two leases on recently vacated space.

INCOME TAX EXPENSE

The Company's effective tax rate was 20.7% in the second quarter of 2018, compared to 32.7% for the same period in 2017. The decrease is a direct result of The Tax Cuts and Jobs Act of 2017, which reduced the Federal statutory tax rate from 35% in 2017, to 21% in 2018.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2018. Nonperforming assets represented 0.42% of total assets at June 30, 2018, compared to 0.38% at December 31, 2017, and 0.36% at June 30, 2017. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.61%.

Provision for loan and lease losses was $1.0 million for the second quarter of 2018 and 2017. Net charge-offs for the second quarter of 2018 were $31,000 compared to net recoveries of $15,000 reported in the second quarter of 2017.

The Company’s allowance for originated loan and lease losses totaled $41.2 million at June 30, 2018, and represented 0.91% of total originated loans and leases at June 30, 2018, unchanged from both the most recent prior quarter, and June 30, 2017. The total allowance represented 158.08% of total nonperforming loans and leases at June 30, 2018, compared to 172.84% at December 31, 2017, and 178.59% at June 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 7.36% at June 30, 2018, improved from the 7.29% reported for the most recent prior quarter ended March 31, 2018, and down from 7.50% at June 30, 2017.

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.

The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.

 

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) (Unaudited)				As of			As of
ASSETS				06/30/2018			12/31/2017
Cash and noninterest bearing balances due from banks			$	80,702		$	77,688
Interest bearing balances due from banks				1,971			6,615
	Cash and Cash Equivalents			82,673			84,303
Available-for-sale securities, at fair value (amortized cost of $1,385,805 at June 30,
	2018 and $1,408,996 at December 31, 2017)			1,343,690			1,391,863
Held-to-maturity securities, at amortized cost (fair value of $137,221 at June 30, 2018
	and $140,315 at December 31, 2017)			139,413			139,216
Equity securities, at fair value (amortized cost $1,000,000 at June 30, 2018
	and $1,000,000 at December 31, 2017)			888			913
Originated loans and leases, net of unearned income and deferred costs and fees (2)				4,507,006			4,358,543
Acquired loans (3)				284,187			310,577
Less:  Allowance for loan and lease losses				41,225			39,771
	Net Loans and Leases			4,749,968			4,629,349
Federal Home Loan Bank and other stock				58,770			50,498
Bank premises and equipment, net				93,994			86,995
Corporate owned life insurance				81,126			80,106
Goodwill				92,283			92,291
Other intangible assets, net				8,342			9,263
Accrued interest and other assets				94,653			83,494
	Total Assets		$	6,745,800		$	6,648,290
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,749,782			2,651,632
	Time			635,004			748,250
	Noninterest bearing			1,407,443			1,437,925
	Total Deposits			4,792,229			4,837,807
Federal funds purchased and securities sold under agreements to repurchase				52,042			75,177
Other borrowings				1,229,956			1,071,742
Trust preferred debentures				16,777			16,691
Other liabilities				64,147			70,671
	Total Liabilities		$	6,155,151		$	6,072,088
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		15,314,340 at June 30, 2018; and 15,301,524 at December 31, 2017		1,532			1,530
	Additional paid-in capital			367,121			364,031
	Retained earnings			294,553			265,007
	Accumulated other comprehensive loss			(69,436	)		(51,296	)
	Treasury stock, at cost – 118,554 shares at June 30, 2018, and 120,805 shares
		at December 31, 2017		(4,597	)		(4,492	)
	Total Tompkins Financial Corporation Shareholders’ Equity			589,173			574,780
Noncontrolling interests				1,476			1,422
	Total Equity		$	590,649		$	576,202
	Total Liabilities and Equity		$	6,745,800		$	6,648,290

 

 

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended						Six Months Ended
(In thousands, except per share data) (Unaudited)			06/30/2018			06/30/2017			06/30/2018			06/30/2017
INTEREST AND DIVIDEND INCOME
Loans		$	52,757		$	47,357		$	103,651		$	92,308
Due from banks			7			4			13			6
Available-for-sale securities			7,729			7,647			15,373			14,969
Held-to-maturity securities			854			870			1,712			1,748
Federal Home Loan Bank and other stock			796			464			1,534			932
Total Interest and Dividend Income			62,143			56,342			122,283			109,963
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more			540			466			525			907
Other deposits			3,087			2,482			5,870			4,829
Federal funds purchased and securities sold under agreements to repurchase			34			43			80			151
Trust preferred debentures			306			256			586			623
Other borrowings			5,462			2,794			9,821			5,118
Total Interest Expense			9,429			6,041			16,882			11,628
Net Interest Income			52,714			50,301			105,401			98,335
Less:  Provision for loan and lease losses			1,045			976			1,612			1,745
Net Interest Income After Provision for Loan and Lease Losses			51,669			49,325			103,789			96,590
NONINTEREST INCOME
Insurance commissions and fees			7,387			7,092			14,781			14,210
Investment services income			4,022			3,891			8,268			7,682
Service charges on deposit accounts			2,080			2,045			4,212			4,212
Card services income			2,621			2,676			4,767			4,685
Other income			4,898			1,746			6,686			3,901
Gain on sale of available-for-sale securities			150			0			274			0
Total Noninterest Income			21,158			17,450			38,988			34,690
NONINTEREST EXPENSE
Salaries and wages			21,377			20,480			42,375			40,116
Pension and other employee benefits			5,183			4,989			10,559			10,624
Net occupancy expense of premises			3,170			3,390			6,816			6,901
Furniture and fixture expense			1,673			1,637			3,648			3,234
FDIC insurance			704			617			1,371			1,155
Amortization of intangible assets			443			485			894			978
Other operating expense			12,435			9,970			23,043			19,928
Total Noninterest Expenses			44,985			41,568			88,706			82,936
Income Before Income Tax Expense			27,842			25,207			54,071			48,344
Income Tax Expense			5,751			8,248			11,512			15,637
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation			22,091			16,959			42,559			32,707
Less:  Net income attributable to noncontrolling interests			32			33			64			65
Net Income Attributable to Tompkins Financial Corporation		$	22,059		$	16,926		$	42,495		$	32,642
Basic Earnings Per Share		$	1.44		$	1.11		$	2.78		$	2.15
Diluted Earnings Per Share		$	1.43		$	1.11		$	2.76		$	2.13

 

 

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
			Quarter Ended								YTD Period Ended								YTD Period Ended
				June 30, 2018								June 30, 2018								June 30, 2017
				Average					Average			Average					Average			Average					Average
				Balance					Yield/			Balance					Yield/			Balance					Yield/
(Dollar amounts in thousands)				(QTD)		Interest			Rate			(YTD)		Interest			Rate			(YTD)		Interest			Rate
ASSETS
Interest-earning assets
	Interest-bearing balances due from banks		$	1,286		$	7		2.18	%	$	1,922		$	14		1.47	%	$	3,572		$	6		0.34	%
	Securities (4)
		U.S. Government securities		1,442,384			8,042		2.24	%		1,448,274			15,997		2.23	%		1,477,512			15,621		2.13	%
		State and municipal (5)		97,189			628		2.59	%		98,470			1,271		2.60	%		101,598			1,701		3.38	%
		Other securities (5)		3,544			39		4.41	%		3,558			74		4.19	%		3,608			64		3.58	%
		Total securities		1,543,117			8,709		2.26	%		1,550,302			17,342		2.26	%		1,582,718			17,386		2.22	%
	FHLBNY and FRB stock			53,967			796		5.92	%		51,750			1,534		5.98	%		39,426			932		4.77	%
	Total loans and leases, net of unearned income (5)(6)			4,750,192			53,076		4.48	%		4,719,312			104,304		4.46	%		4,305,304			93,772		4.39	%
	Total interest-earning assets			6,348,562			62,588		3.95	%		6,323,286			123,194		3.93	%		5,931,020			112,096		3.81	%
Other assets				341,087								348,024								354,842
	Total assets		$	6,689,649							$	6,671,310							$	6,285,862
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings & money market	$	2,832,800			1,940		0.27	%	$	2,814,601			3,587		0.26	%	$	2,680,639			2,265		0.17	%
		Time deposits		661,502			1,687		1.02	%		689,404			2,808		0.82	%		867,571			3,471		0.81	%
		Total interest-bearing deposits		3,494,302			3,627		0.42	%		3,504,005			6,395		0.37	%		3,548,210			5,736		0.33	%
Federal funds purchased & securities sold under
		agreements to repurchase		54,246			34		0.25	%		64,649			80		0.25	%		69,560			151		0.44	%
Other borrowings				1,143,825			5,462		1.92	%		1,098,818			9,821		1.80	%		813,477			5,118		1.27	%
Trust preferred debentures				16,749			306		7.33	%		16,728			586		7.06	%		20,063			623		6.26	%
	Total interest-bearing liabilities			4,709,122			9,429		0.80	%		4,684,200			16,882		0.73	%		4,451,310			11,628		0.53	%
Non-interest bearing deposits				1,337,311								1,344,270								1,204,272
Accrued expenses and other liabilities				58,265								62,856								65,915
	Total liabilities			6,104,698								6,091,326								5,721,497
Tompkins Financial Corporation Shareholders’ equity				583,492								578,541								562,896
Noncontrolling interest				1,459								1,443								1,469
	Total equity			584,951								579,984								564,365
	Total liabilities and equity		$	6,689,649							$	6,671,310							$	6,285,862
Interest rate spread									3.15	%							3.20	%							3.28	%
	Net interest income/margin on earning assets						53,159		3.36	%					106,312		3.39	%					100,468		3.42	%
Tax equivalent adjustments							(445	)							(911	)							(2,133	)
	Net interest income per consolidated financial statements					$	52,714							$	105,401							$	98,335

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)
	Quarter-Ended															Year-Ended
Period End Balance Sheet		Jun-18			Mar-18			Dec-17			Sep-17			Jun-17			Dec-17
Securities	$	1,483,991		$	1,510,795		$	1,531,991		$	1,546,199		$	1,564,865		$	1,531,991
Originated loans and leases, net of unearned income and deferred costs and fees (2)		4,507,006			4,408,081			4,358,543			4,167,254			4,070,755			4,358,543
Acquired loans and leases (3)		284,187			296,765			310,577			323,259			347,841			310,577
Allowance for  loan and lease losses		41,225			40,211			39,771			38,038			37,157			39,771
Total assets		6,745,800			6,648,128			6,648,290			6,524,060			6,415,012			6,648,290
Total deposits		4,792,229			4,929,903			4,837,807			4,943,944			4,750,722			4,837,807
Federal funds purchased and securities sold under agreements to repurchase		52,042			69,131			75,177			73,874			50,360			75,177
Other borrowings		1,229,956			995,074			1,071,742			834,574			952,035			1,071,742
Trust preferred debentures		16,777			16,734			16,691			16,648			16,605			16,691
Total common equity		589,173			577,967			574,780			588,349			575,428			574,780
Total equity		590,649			579,411			576,202			589,868			576,915			576,202

Average Balance Sheet
Average earning assets	$	6,348,562		$	6,297,727		$	6,159,396		$	6,072,269		$	5,970,653		$	6,024,186
Average assets		6,689,649			6,652,763			6,552,414			6,430,497			6,329,847			6,389,504
Average interest-bearing liabilities		4,709,122			4,658,998			4,500,649			4,463,606			4,474,860			4,466,846
Average equity		584,951			574,963			593,956			586,671			572,741			577,446

 

Share data
Weighted average shares outstanding (basic)		15,038,061			15,013,478			14,988,542			14,966,231			14,944,934			14,950,432
Weighted average shares outstanding (diluted)		15,135,970			15,112,518			15,103,906			15,078,555			15,066,861			15,073,255
Period-end shares outstanding		15,278,430			15,285,335			15,265,614			15,202,444			15,189,453			15,265,614
Common equity book value per share	$	38.56		$	37.81		$	37.65		$	38.70		$	37.88		$	37.65
Tangible book value per share (Non-GAAP)	$	32.02		$	31.24		$	31.04		$	32.03		$	31.18		$	31.04

 

Income Statement
Net interest income	$	52,714		$	52,687		$	51,969		$	51,000		$	50,301		$	201,304
Provision for loan/lease losses		1,045			567			2,014			402			976			4,161
Noninterest income		21,158			17,830			17,312			17,202			17,450			69,204
Noninterest expense		44,985			43,721			46,286			41,883			41,568			171,105
Income tax expense		5,751			5,761			18,493			8,491			8,248			42,620
Net income attributable to Tompkins Financial Corporation		22,059			20,436			2,457			17,394			16,926			52,494
Noncontrolling interests		32			32			31			32			33			128
Basic earnings per share (8)	$	1.44		$	1.34		$	0.16		$	1.14		$	1.11		$	3.46
Diluted earnings per share (8)	$	1.43		$	1.33		$	0.16		$	1.14		$	1.11		$	3.43

 

 

 

Nonperforming Assets
Originated nonaccrual loans and leases	$	19,082		$	18,429		$	16,253		$	15,667		$	14,284		$	16,253
Acquired nonaccrual loans and leases		2,673			3,352			3,264			3,152			2,903			3,264
Originated loans and leases 90 days past due and accruing		0			0			44			0			639			44
Troubled debt restructurings not included above		4,324			3,455			3,449			3,541			2,980			3,449
Total nonperforming loans and leases		26,079			25,236			23,010			22,360			20,806			23,010
OREO		2,233			2,047			2,047			2,030			2,331			2,047
Total nonperforming assets	$	28,312		$	27,283		$	25,057		$	24,390		$	23,137		$	25,057

 

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

		Quarter-Ended														Year-Ended
Delinquency - Originated loan and lease portfolio		Jun-18			Mar-18			Dec-17			Sep-17			Jun-17			Dec-17
Loans and leases 30-89 days past due and accruing (2)	$	5,875		$	6,513		$	6,791		$	5,567		$	6,188		$	6,791
Loans and leases 90 days past due and accruing (2)		0			0			44			0			639			44
Total originated loans and leases past due and accruing (2)		5,875			6,513			6,835			5,567			6,827			6,835

 

Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7)	$	1,108		$	823		$	1,256		$	2,857		$	751		$	1,256
Loans 90 days or more past due		1,110			1,077			1,146			1,306			2,581			1,146
Total acquired loans and leases past due and accruing		2,218			1,900			2,402			4,163			3,332			2,402
Total loans and leases past due and accruing	$	8,093		$	8,413		$	9,237		$	9,730		$	10,159		$	9,237

 

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	40,107		$	39,686		$	37,903		$	36,960		$	35,915		$	35,598
Provision for loan and lease losses		1,035			608			1,849			931			846			4,428
Net loan and lease (recoveries) charge-offs		31			187			66			(12	)		(199	)		140
Allowance for loan and lease losses (originated
loan portfolio) - balance at end of period	$	41,111		$	40,107		$	39,686		$	37,903		$	36,960		$	39,686

 

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	104		$	85		$	135		$	197		$	251		$	157
Provision (credit) for loan and lease losses		10			(41	)		165			(529	)		130			(67	)
Net loan and lease (recoveries) charge-offs		0			(60	)		215			(467	)		184			5
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		114			104			85			135			197			85
Total allowance for loan and lease losses	$	41,225		$	40,211		$	39,771		$	38,038		$	37,157		$	39,771

 

 

 

Loan Classification - Originated Portfolio
Special Mention	$	44,068		$	34,546		$	46,074		$	50,423		$	38,488		$	46,074
Substandard		41,572			35,746			20,584			20,532			19,532			20,584
Loan Classification - Acquired Portfolio
Special Mention		469			476			525			539			547			525
Substandard		3,180			3,468			5,355			8,193			8,796			5,355
Loan Classifications - Total Portfolio
Special Mention		44,537			35,022			46,599			50,962			39,035			46,599
Substandard		44,752			39,214			25,939			28,725			28,328			25,939

 

Ratio Analysis

Credit Quality
Nonperforming loans and leases/total loans and leases (7)		0.54	%		0.54	%		0.49	%		0.50	%		0.47	%		0.49	%
Nonperforming assets/total assets		0.42	%		0.41	%		0.38	%		0.37	%		0.36	%		0.38	%
Allowance for originated loan and lease losses/total originated loans and leases		0.91	%		0.91	%		0.91	%		0.91	%		0.91	%		0.91	%
Allowance/nonperforming loans and leases		158.08	%		159.34	%		172.84	%		170.12	%		178.59	%		172.84	%
Net loan and lease losses (recoveries) annualized/total average loans and leases		0.00	%		0.01	%		0.02	%		(0.04	)%		0.00	%		0.00	%

 

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

	Quarter-Ended																Year-Ended
Capital Adequacy (period-end)		Jun-18			Mar-18			Dec-17			Sep-17			Jun-17			Dec-17
Tangible common equity/tangible assets		7.36	%		7.29	%		7.24	%		7.58	%		7.50	%		7.24	%

 

Profitability
Return on average assets *		1.32	%		1.25	%		0.15	%		1.07	%		1.07	%		0.82	%
Return on average equity *		15.13	%		14.41	%		1.64	%		11.77	%		11.85	%		9.09	%
Net interest margin (TE) *		3.36	%		3.42	%		3.42	%		3.40	%		3.45	%		3.41	%
* 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 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.

 

 

Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
		Quarter-Ended														Year-Ended
		Jun-18			Mar-18			Dec-17			Sep-17			Jun-17			Dec-17
Net income available to common shareholders	$	22,059		$	20,436		$	2,457		$	17,394		$	16,926		$	52,494
Income attributable to unvested stock-based compensation awards		359			351			26			266			266			818
Net earnings allocated to common shareholders		21,700			20,085			2,431			17,128			16,660			51,676
Remeasurement of net deferred taxes		0			0			14,944			0			0			14,994
Gain on sale of real estate, net of tax		2,227			0			0			0			0			0
Write-down of impaired leases, net of tax		(1,527	)		0			0			0			0			0
Net income (Non-GAAP)		21,000			20,085			17,375			17,128			16,660			66,620
Weighted average shares outstanding (diluted)	15,135,970			15,112,518			15,103,906			15,078,555			15,066,861			15,073,255
Adjusted diluted earnings per share (Non-GAAP)	$	1.39		$	1.33		$	1.15		$	1.14		$	1.11		$	4.42

 

Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity	$	589,173		$	577,967		$	574,780		$	588,349		$	575,428		$	574,780
Less:  Goodwill and intangibles (9)		99,983			100,436			100,887			101,360			101,840			100,887
Tangible common equity		489,190			477,531			473,893			486,989			473,588			473,893
Ending shares outstanding	15,278,430			15,285,335			15,265,614			15,202,444			15,189,453			15,265,614
Tangible book value per share (Non-GAAP)	$	32.02		$	31.24		$	31.04		$	32.03		$	31.18		$	31.04

 

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

Non-GAAP Disclosure - Year to date adjusted diluted earnings per share
		Jun-18			Jun-17
Net income available to common shareholders	$	42,495		$	32,642
Income attributable to unvested stock-based compensation awards		706			527
Net earnings allocated to common shareholders		41,789			32,115
Gain on sale of real estate, net of tax		2,227			0
Write-down of impaired leases, net of tax		(1,527)			0
Net income (Non-GAAP)		41,089			32,115
Weighted average shares outstanding (diluted)		15,124,267			15,054,870
Adjusted diluted earnings per share (Non-GAAP)	$	2.72		$	2.13

 

(1) Federal Reserve peer ratio as of March 31, 2018, 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.

(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, 2017.

(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)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.

(9) “Goodwill and intangibles” equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.