TMP
$80.11
Tompkinstrustco
($3.92)
(4.67%)
Earnings Details
3rd Quarter September 2021
Friday, October 22, 2021 9:00:00 AM
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Summary

Tompkinstrustco (TMP) Recent Earnings

Tompkinstrustco (TMP) reported 3rd Quarter September 2021 earnings of $1.66 per share on revenue of $82.0 million. The consensus earnings estimate was $1.48 per share on revenue of $76.8 million. Revenue fell 1.5% compared to the same quarter a year ago.

Tompkins Financial Corp is a community-based financial services organization that offers commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, insurance, and brokerage services.

Results
Reported Earnings
$1.66
Earnings Whisper
-
Consensus Estimate
$1.48
Reported Revenue
$82.0 Mil
Revenue Estimate
$76.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tompkins Financial Corporation Reports Third Quarter Earnings

ITHACA, N.Y.--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.45 for the third quarter of 2021, compared to $1.63 reported for the third quarter of 2020. Net income for the third quarter of 2021 was $21.3 million, compared to $24.2 million for the same period in 2020. Results for the third quarter of 2021 were negatively impacted by approximately $4.1 million ($0.21 per share) of nonrecurring expenses related to the prepayment of borrowings and the redemption of trust preferred securities. Though these transactions had a negative impact on current period earnings, they are expected to have a favorable impact on future earnings by way of reduced interest expense. Additional details on these nonrecurring transactions are described below.

For the year-to-date period ended September 30, 2021, diluted earnings per share were $4.72, up 31.5% from $3.59 for the same year-to-date period in 2020. Year-to-date net income was $69.8 million for the nine month period ended September 30, 2021, up 30.2% compared to $53.6 million for the same period in 2020.

Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report record earnings performance through the first nine months of 2021. The third quarter of 2021 was down from the same quarter last year due to some nonrecurring expenses related to discretionary debt restructuring transactions. Despite higher expenses related to these transactions, several positive revenue trends were noted during the quarter, including growth in both net interest income and noninterest income when compared to the second quarter this year."

SELECTED HIGHLIGHTS FOR THE THIRD QUARTER:

  • Net interest income was $56.1 million for the third quarter of 2021, up from $54.8 million reported in the second quarter of 2021, and down from $58.3 million reported in the same quarter of 2020. Net interest income in the third quarter of 2021 included a $1.2 million purchase accounting charge related to the redemption of $10.0 million in trust preferred securities. Net interest income for the second quarter of 2021 included a $650,000 purchase accounting charge related to the redemption of $5.2 million in trust preferred securities.
  • Total loans at September 30, 2021 were $5.1 billion compared to $5.4 billion at September 30, 2020, and $5.3 billion at year end 2020. The $301.5 million change in total loans compared to September 30, 2020, reflected a decline of $322.1 million in loans under the U.S. Small Business Administration's Paycheck Protection Program ("PPP") at the end of the third quarter of 2021 compared to the end of the third quarter of 2020.
  • Largely stable credit conditions and improving macroeconomic trends contributed to a lower allowance for credit losses at September 30, 2021 when compared to September 30, 2020. The provision for credit losses for the quarter and year-to-date periods ended September 30, 2021 were credits of $1.2 million and $6.1 million, respectively, compared to a credit of $218,000 and an expense of $17.4 million, respectively, for the same periods in 2020.
  • Noninterest income for the quarter was $20.9 million, reflecting an increase of 10.6% over the second quarter of 2021, and 10.4% over the third quarter of 2020.
  • Noninterest expense for the quarter was $50.2 million, an increase of 5.8% over the second quarter of 2021, and 7.3% over the same quarter last year. The increase in the third quarter of 2021 was largely related to $2.9 million of penalties related to prepayment of $135.0 million of FHLB borrowings.

NET INTEREST INCOME

The net interest margin was 2.89% for the third quarter of 2021, compared to 2.91% for the second quarter of 2021, and 3.26% for the third quarter of 2020. Net interest income was $56.1 million for the third quarter of 2021, compared to $58.3 million for the third quarter of 2020. Interest income for the third quarter of 2021 included $3.3 million of net deferred loan fees associated with PPP loans, compared to net deferred PPP loan fees of $2.4 million in the third quarter of 2020. Interest expense for the third quarter of 2021 was negatively impacted by an accelerated non-cash purchase accounting discount of $1.2 million related to the redemption of $10.0 million in trust preferred securities.

For the year-to-date period ended September 30, 2021, net interest income of $166.0 million was down 1.0% when compared to the nine month period ended September 30, 2020. For the year-to-date period in 2021, net deferred loan fees associated with PPP loans were approximately $8.0 million as compared to $4.8 million in the same period of 2020. Interest expense for the nine months ended September 30, 2021, was negatively impacted by an accelerated non-cash purchase accounting discount of $1.9 million related to the redemption of $15.2 million in trust preferred securities. The $15.2 million in redeemed trust preferred securities carried a weighted average interest rate of 5.26% at the time they were redeemed and had a weighted average final maturity of slightly more than 11 years.

Average loans for the quarter ended September 30, 2021 were $5.1 billion compared to $5.4 billion in the same period in 2020. The $285.0 million change in average loan balances was primarily due to a decline in average PPP loans from the third quarter of 2020 to the third quarter of 2021.

Average securities for the quarter ended September 30, 2021, were up $788.2 million or 54.0% when compared to the same period in 2020. The increase is mainly a result of investing excess cash, driven by deposit growth and PPP loan forgiveness.

Asset yields for the quarter ended September 30, 2021 were down 44 basis points compared to the quarter ended September 30, 2020, which reflects the impact of reductions in market interest rates over the trailing twelve month period as well as a greater percentage of earning assets being comprised of lower yielding securities and interest bearing balances due from banks, when compared to the same period in 2020.

Average total deposits for the third quarter of 2021 were up $571.9 million, or 9.0% compared to the same period in 2020. Average noninterest bearing deposits for the three months ended September 30, 2021 were up $267.5 million or 14.1% compared to the three months ended September 30, 2020. Average deposit balances continue to benefit from the PPP loan program, as the majority of the proceeds of the PPP loans funded by Tompkins during 2020 and the first half of 2021 were deposited in Tompkins checking accounts. The total cost of interest-bearing liabilities was 0.39% for the quarter ended September 30, 2021, a decline of 11 basis points from the quarter ended September 30, 2020.

NONINTEREST INCOME

Noninterest income of $20.9 million for the third quarter of 2021, was up 10.4% compared to the same period in 2020. For the year-to-date period, noninterest income of $59.7 million was up 8.5% from the same period in 2020. Growth over the same quarter and nine-month periods in the prior year was supported by increases in nearly all fee income categories, including: Insurance commissions and fees (up 10.3% for the quarter, 11.7% for the year-to-date period), Investment services income (up 15.5% for the quarter, 15.6% for the year-to-date period), Service charges on deposit accounts up (13.4% for the quarter, down 2.0% for the year-to-date period), and Card services income (up 12.3% for the quarter, 16.9% for the year-to-date period). Noninterest income represented 27.1% of total revenues for the third quarter of 2021, as compared to 24.5% of total revenues for the third quarter of 2020.

NONINTEREST EXPENSE

Noninterest expense was $50.2 million for the third quarter of 2021, up $3.4 million, or 7.3%, from the third quarter of 2020. For the year-to-date period, noninterest expense was $142.1 million, up $4.4 million or 3.2% from the same period in 2020. Included in the quarter and year-to-date periods of 2021 were penalties of $2.9 million related to the prepayment of $135.0 million in FHLB fixed rate advances. The advances, which were paid off in September 2021, carried a weighted average interest rate of 2.26% and had a weighted average maturity of 1.25 years.

INCOME TAX EXPENSE

The Company's effective tax rate was 23.7% for the third quarter of 2021, compared to 20.7% for the same period in 2020. The effective tax rate for the nine months ended September 30, 2021 was 22.1%, compared to 20.4% reported for the same period in 2020.

ASSET QUALITY

The allowance for credit losses represented 0.91% of total loans and leases at September 30, 2021, down from 0.92% at June 30, 2021, and 0.98% at December 31, 2020. The ratio of the allowance to total nonperforming loans and leases declined to 76.2% at September 30, 2021, compared to 88.3% at June 30, 2021, and 112.9% at December 31, 2020.

The provision for credit loss expense for the third quarter of 2021 was a credit of $1.2 million compared to a credit of $218,000 for the same period in 2020. Net charge-offs for the quarter ended September 30, 2021 were $69,000 compared to net recoveries of $12,000 reported for the same period in 2020. Provision expense for the nine months ended September 30, 2021 was a credit of $6.1 million, compared to an expense of $17.4 million for the same period in 2020.

Nonperforming loans and leases totaled $60.7 million at September 30, 2021, compared to $53.8 million at June 30, 2021, and $45.8 million at December 31, 2020. The increase in nonperforming loans and leases compared to prior quarter end and year end 2020 was related to two commercial real estate relationships that moved into nonperforming status, totaling $9.1 million in the second quarter of 2021 and $7.5 million in the third quarter of 2021, which continue to accrue interest. Nonperforming assets represented 0.75% of total assets at September 30, 2021, up from 0.67% at June 30, 2021, and 0.60% at December 31, 2020.

Special Mention and Substandard loans and leases totaled $168.5 million at September 30, 2021, reflecting improvement from $171.3 million at June 30, 2021, and $189.9 million reported at December 31, 2020.

As previously announced, the Company implemented a payment deferral program in 2020 to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. As of September 30, 2021, total loans that continued in a deferral status amounted to approximately $12.8 million, representing 0.25% of total loans. At June 30, 2021 total loans in deferral status totaled $129.4 million, and at December 31, 2020 total loans in deferral status totaled $212.2 million. Included in nonperforming loans and leases and Substandard loans and leases at September 30, 2021, were 2 loans totaling $3.0 million that remained in deferral status.

The Company began accepting applications for PPP loans on April 3, 2020, and had funded 2,998 loans totaling approximately $465.6 million when the initial program ended. On January 19, 2021, the Company began accepting both first draw and second draw applications for the reopening of the PPP program. The 2021 PPP program funding closed for new applications on May 12, 2021. The Company funded 2,142 applications totaling $228.5 million in 2021.

Out of the total $694.1 million of PPP loans that the Company had funded through October 12, 2021, approximately $552.0 million had been forgiven by the SBA under the terms of the program. Total net deferred fees on the remaining balance of PPP loans amounted to $6.2 million at September 30, 2021.

CAPITAL POSITION

Capital ratios at September 30, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.21% at September 30, 2021, down from 14.62% reported at June 30, 2021, and 14.39% at December 31, 2020. The ratio of Tier 1 capital to average assets was 8.54% at September 30, 2021, compared to 8.79% at June 30, 2021, and 8.75% at December 31, 2020.

During the third quarter of 2021, the Company repurchased 170,775 common shares at an aggregate cost of $13.2 million. These shares were purchased under the Company's previously announced 2020 Stock Repurchase Program. During the first nine months of 2021, the Company repurchased 272,310 shares at an aggregate cost of $21.2 million.

The Company announced today that its Board of Directors has authorized a new stock repurchase program of up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, over the next 24 months. This program replaces the Company's existing 400,000 stock repurchase program announced on January 30, 2020.

The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company's stock and general market and economic conditions, and applicable legal requirements.

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, and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. The Company’s banks have announced plans for a rebranding effort, pursuant to which the Company’s four wholly-owned banking subsidiaries will be combined into one bank, with The Bank of Castile, Mahopac Bank, and VIST Bank merging with and into Tompkins Trust Company. The combined bank will conduct business under the “Tompkins” brand name, with a legal name of “Tompkins Community Bank.” For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; the severity and duration of the COVID-19 pandemic and the impact of COVID-19 (including governments’ responses thereto) on economic and financial markets, potential regulatory actions, and modifications to our operations, products, and services relating thereto; disruptions in our and our customers’ operations and loss of revenue due to pandemics, epidemics, widespread health emergencies, government-imposed travel/business restrictions, or outbreaks of infectious diseases such as the coronavirus, and the associated adverse impact on our financial position, liquidity, and our customers’ abilities to repay their obligations to us or willingness to obtain financial services products from the Company; the development of an interest rate environment that may adversely affect the Company’s interest rate spread, other income or cash flow anticipated from the Company’s operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, such as the Dodd-Frank Act, Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; legislative and regulatory changes in response to COVID-19 with which we and our subsidiaries must comply, including the CARES Act and the Consolidated Appropriations Act, 2021 and the rules and regulations promulgated thereunder, and state and local government mandates; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; uncertainties arising from national and global events, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. The Company does not undertake any obligation to update its forward-looking statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data)

 

As of

 

As of

ASSETS

 

9/30/2021

 

12/31/2020

 

 

 

 

 

Cash and noninterest bearing balances due from banks

 

$

22,441

 

 

$

21,245

 

Interest bearing balances due from banks

 

311,046

 

 

367,217

 

Cash and Cash Equivalents

 

333,487

 

 

388,462

 

 

 

 

 

 

Available-for-sale debt securities, at fair value (amortized cost of $2,072,498 at September 30, 2021 and $1,599,894 at December 31, 2020)

 

2,066,927

 

 

1,627,193

 

Held-to-maturity securities, at amortized cost (fair value of $268,283 at September 30, 2021 and $0 December 31, 2020)

 

269,268

 

 

0

 

Equity securities, at fair value (amortized cost $910 at September 30, 2021 and $929 at December 31, 2020)

 

910

 

 

929

 

Total loans and leases, net of unearned income and deferred costs and fees

 

5,096,778

 

 

5,260,327

 

Less: Allowance for credit losses

 

46,259

 

 

51,669

 

Net Loans and Leases

 

5,050,519

 

 

5,208,658

 

 

 

 

 

 

Federal Home Loan Bank and other stock

 

10,366

 

 

16,382

 

Bank premises and equipment, net

 

85,955

 

 

88,709

 

Corporate owned life insurance

 

86,094

 

 

84,736

 

Goodwill

 

92,447

 

 

92,447

 

Other intangible assets, net

 

3,989

 

 

4,905

 

Accrued interest and other assets

 

113,148

 

 

109,750

 

Total Assets

 

$

8,113,110

 

 

$

7,622,171

 

LIABILITIES

 

 

 

 

Deposits:

 

 

 

 

Interest bearing:

 

 

 

 

Checking, savings and money market

 

4,211,732

 

 

3,761,933

 

Time

 

675,499

 

 

746,234

 

Noninterest bearing

 

2,203,667

 

 

1,929,585

 

Total Deposits

 

7,090,898

 

 

6,437,752

 

 

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

72,490

 

 

65,845

 

Other borrowings

 

110,000

 

 

265,000

 

Trust preferred debentures

 

0

 

 

13,220

 

Other liabilities

 

117,365

 

 

122,665

 

Total Liabilities

 

$

7,390,753

 

 

$

6,904,482

 

EQUITY

 

 

 

 

Tompkins Financial Corporation shareholders' equity:

 

 

 

 

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,695,105 at September 30, 2021; and 14,964,389 at December 31, 2020

 

1,470

 

 

1,496

 

Additional paid-in capital

 

315,957

 

 

333,976

 

Retained earnings

 

464,152

 

 

418,413

 

Accumulated other comprehensive loss

 

(55,094

)

 

(32,074

)

Treasury stock, at cost – 122,824 shares at September 30, 2021, and 124,849 shares at December 31, 2020

 

(5,634

)

 

(5,534

)

Total Tompkins Financial Corporation Shareholders’ Equity

 

720,851

 

 

716,277

 

Noncontrolling interests

 

1,506

 

 

1,412

 

Total Equity

 

$

722,357

 

 

$

717,689

 

Total Liabilities and Equity

 

$

8,113,110

 

 

$

7,622,171

 

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data) (Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/2021

 

9/30/2020

 

9/30/2021

 

9/30/2020

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

Loans

 

$

53,738

 

 

$

57,892

 

 

$

161,598

 

 

$

169,639

Due from banks

 

136

 

 

83

 

 

266

 

 

90

 

Available-for-sale debt securities

 

6,312

 

 

6,035

 

 

17,188

 

 

20,101

 

Held-to-maturity securities

 

732

 

 

0

 

 

1,044

 

 

0

 

Federal Home Loan Bank and other stock

 

196

 

 

306

 

 

608

 

 

1,130

 

Total Interest and Dividend Income

 

61,114

 

 

$

64,316

 

 

$

180,704

 

 

$

190,960

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Time certificates of deposits of $250,000 or more

 

518

 

 

755

 

 

1,724

 

 

2,458

 

Other deposits

 

2,088

 

 

3,450

 

 

6,835

 

 

13,723

 

Federal funds purchased and securities sold under agreements to repurchase

 

17

 

 

19

 

 

48

 

 

76

 

Trust preferred debentures

 

1,237

 

 

216

 

 

2,233

 

 

758

 

Other borrowings

 

1,156

 

 

1,623

 

 

3,883

 

 

6,357

 

Total Interest Expense

 

5,016

 

 

6,063

 

 

14,723

 

 

23,372

 

Net Interest Income

 

56,098

 

 

58,253

 

 

165,981

 

 

167,588

 

Less: (Credit) provision for credit loss expense

 

(1,232

)

 

(218

)

 

(6,133

)

 

17,418

 

Net Interest Income After Provision for Credit Loss Expense

 

57,330

 

 

58,471

 

 

172,114

 

 

150,170

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

Insurance commissions and fees

 

9,833

 

 

8,916

 

 

27,053

 

 

24,216

 

Investment services income

 

4,957

 

 

4,292

 

 

14,347

 

 

12,414

 

Service charges on deposit accounts

 

1,638

 

 

1,444

 

 

4,579

 

 

4,675

 

Card services income

 

2,717

 

 

2,419

 

 

8,051

 

 

6,885

 

Other income

 

1,769

 

 

1,818

 

 

5,408

 

 

6,388

 

Net (loss) gain on securities transactions

 

(60

)

 

(2

)

 

257

 

 

446

 

Total Noninterest Income

 

20,854

 

 

18,887

 

 

59,695

 

 

55,024

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

Salaries and wages

 

24,825

 

 

23,951

 

 

71,477

 

 

69,482

 

Other employee benefits

 

5,777

 

 

6,690

 

 

17,887

 

 

18,260

 

Net occupancy expense of premises

 

3,019

 

 

3,162

 

 

10,042

 

 

9,530

 

Furniture and fixture expense

 

2,066

 

 

1,886

 

 

6,220

 

 

5,759

 

Amortization of intangible assets

 

329

 

 

371

 

 

988

 

 

1,120

 

Other operating expense

 

14,164

 

 

10,706

 

 

35,519

 

 

33,553

 

Total Noninterest Expenses

 

50,180

 

 

46,766

 

 

142,133

 

 

137,704

 

Income Before Income Tax Expense

 

28,004

 

 

30,592

 

 

89,676

 

 

67,490

 

Income Tax Expense

 

6,630

 

 

6,330

 

 

19,781

 

 

13,779

 

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

 

21,374

 

 

24,262

 

 

69,895

 

 

53,711

 

Less: Net Income Attributable to Noncontrolling Interests

 

32

 

 

32

 

 

96

 

 

101

 

Net Income Attributable to Tompkins Financial Corporation

 

$

21,342

 

 

24,230

 

 

69,799

 

 

53,610

 

Basic Earnings Per Share

 

$

1.46

 

 

$

1.63

 

 

$

4.74

 

 

$

3.60

 

Diluted Earnings Per Share

 

$

1.45

 

 

$

1.63

 

 

$

4.72

 

 

$

3.59

 

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

 

Quarter Ended

Quarter Ended

 

September 30, 2021

September 30, 2020

 

Average

 

 

 

 

Average

 

 

 

 

 

Balance

 

 

 

Average

Balance

 

 

 

Average

(Dollar amounts in thousands)

(QTD)

 

Interest

 

Yield/Rate

(QTD)

 

Interest

 

Yield/Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances due from banks

$

376,341

 

 

$

136

 

 

0.14

%

$

326,908

 

 

$

83

 

 

0.10

%

Securities (1)

 

 

 

 

 

 

 

 

 

 

U.S. Government securities

2,133,984

 

 

6,467

 

 

1.20

%

1,332,240

 

 

5,362

 

 

1.60

%

State and municipal (2)

109,375

 

 

697

 

 

2.53

%

122,932

 

 

816

 

 

2.64

%

Other securities (2)

3,417

 

 

23

 

 

2.64

%

3,433

 

 

25

 

 

2.88

%

Total securities

2,246,776

 

 

7,187

 

 

1.27

%

1,458,605

 

 

6,203

 

 

1.69

%

FHLBNY and FRB stock

15,330

 

 

196

 

 

5.07

%

18,319

 

 

307

 

 

6.66

%

Total loans and leases, net of unearned income (2)(3)

5,115,253

 

 

53,989

 

 

4.19

%

5,400,217

 

 

58,507

 

 

4.31

%

Total interest-earning assets

7,753,700

 

 

61,508

 

 

3.15

%

7,204,049

 

 

65,100

 

 

3.59

%

Other assets

348,370

 

 

 

 

 

377,960

 

 

 

 

 

Total assets

$

8,102,070

 

 

 

 

 

$

7,582,009

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$

4,090,840

 

 

$

906

 

 

0.09

%

$

3,796,615

 

 

$

1,671

 

 

0.18

%

Time deposits

707,212

 

 

1,700

 

 

0.95

%

697,026

 

 

2,534

 

 

1.45

%

Total interest-bearing deposits

4,798,052

 

 

2,606

 

 

0.22

%

4,493,641

 

 

4,205

 

 

0.37

%

Federal funds purchased & securities sold under agreements to repurchase

60,798

 

 

17

 

 

0.11

%

47,527

 

 

19

 

 

0.16

%

Other borrowings

224,459

 

 

1,156

 

 

2.04

%

303,587

 

 

1,623

 

 

2.13

%

Trust preferred debentures

3,444

 

 

1,237

 

 

142.50

%

17,135

 

 

216

 

 

5.02

%

Total interest-bearing liabilities

5,086,753

 

 

5,016

 

 

0.39

%

4,861,890

 

 

6,063

 

 

0.50

%

Noninterest bearing deposits

2,165,537

 

 

 

 

 

1,897,999

 

 

 

 

 

Accrued expenses and other liabilities

116,663

 

 

 

 

 

112,636

 

 

 

 

 

Total liabilities

7,368,953

 

 

 

 

 

6,872,525

 

 

 

 

 

Tompkins Financial Corporation Shareholders’ equity

731,629

 

 

 

 

 

707,996

 

 

 

 

 

Noncontrolling interest

1,488

 

 

 

 

 

1,488

 

 

 

 

 

Total equity

733,117

 

 

 

 

 

709,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

8,102,070

 

 

 

 

 

$

7,582,009

 

 

 

 

 

Interest rate spread

 

 

 

 

2.76

%

 

 

 

 

3.10

%

Net interest income/margin on earning assets

 

 

56,492

 

 

2.89

%

 

 

59,037

 

 

3.26

%

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

 

(394

)

 

 

 

 

(784

)

 

 

Net interest income per consolidated financial statements

 

 

$

56,098

 

 

 

 

 

$

58,253

 

 

 

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

 

Year to Date Period Ended

Year to Date Period Ended

 

September 30, 2021

September 30, 2020

 

Average

 

 

 

 

Average

 

 

 

 

 

Balance

 

 

 

 

Balance

 

 

 

Average

(Dollar amounts in thousands)

(YTD)

 

Interest

 

 

(YTD)

 

Interest

 

Yield/Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

Interest-bearing balances due from banks

$

333,769

 

 

$

266

 

 

0.11

%

$

111,775

 

 

$

90

 

 

0.11

%

Securities (1)

 

 

 

 

 

 

 

 

 

 

U.S. Government securities

1,920,717

 

 

16,417

 

 

1.14

%

1,242,659

 

 

18,236

 

 

1.96

%

State and municipal (2)

114,809

 

 

2,200

 

 

2.56

%

110,058

 

 

2,225

 

 

2.70

%

Other securities (2)

3,420

 

 

69

 

 

2.70

%

3,429

 

 

93

 

 

3.61

%

Total securities

2,038,946

 

 

18,686

 

 

1.23

%

1,356,146

 

 

20,554

 

 

2.02

%

FHLBNY and FRB stock

16,328

 

 

608

 

 

4.98

%

22,175

 

 

1,130

 

 

6.81

%

Total loans and leases, net of unearned income (2)(3)

5,225,087

 

 

162,355

 

 

4.15

%

5,197,757

 

 

170,853

 

 

4.40

%

Total interest-earning assets

7,614,130

 

 

181,915

 

 

3.19

%

6,687,853

 

 

192,627

 

 

3.85

%

Other assets

346,441

 

 

 

 

 

536,424

 

 

 

 

 

Total assets

$

7,960,571

 

 

 

 

 

$

7,224,278

 

 

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$

4,002,724

 

 

$

2,943

 

 

0.10

%

$

3,557,326

 

 

$

7,973

 

 

0.30

%

Time deposits

727,445

 

 

5,616

 

 

1.03

%

693,922

 

 

8,208

 

 

1.58

%

Total interest-bearing deposits

4,730,169

 

 

8,559

 

 

0.24

%

4,251,248

 

 

16,181

 

 

0.51

%

Federal funds purchased & securities sold under agreements to repurchase

57,498

 

 

48

 

 

0.11

%

54,481

 

 

76

 

 

0.19

%

Other borrowings

254,002

 

 

3,883

 

 

2.04

%

397,511

 

 

6,357

 

 

2.14

%

Trust preferred debentures

9,849

 

 

2,233

 

 

30.32

%

17,093

 

 

758

 

 

5.93

%

Total interest-bearing liabilities

5,051,518

 

 

14,723

 

 

0.39

%

4,720,332

 

 

23,372

 

 

0.66

%

Noninterest bearing deposits

2,066,567

 

 

 

 

 

1,699,317

 

 

 

 

 

Accrued expenses and other liabilities

117,383

 

 

 

 

 

111,643

 

 

 

 

 

Total liabilities

7,235,468

 

 

 

 

 

6,531,292

 

 

 

 

 

Tompkins Financial Corporation Shareholders’ equity

723,645

 

 

 

 

 

691,530

 

 

 

 

 

Noncontrolling interest

1,458

 

 

 

 

 

1,456

 

 

 

 

 

Total equity

725,103

 

 

 

 

 

692,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

7,960,571

 

 

 

 

 

$

7,224,278

 

 

 

 

 

Interest rate spread

 

 

 

 

2.80

%

 

 

 

 

3.19

%

Net interest income/margin on earning assets

 

 

167,192

 

 

2.94

%

 

 

169,255

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

 

(1,211

)

 

 

 

 

(1,667

)

 

 

Net interest income per consolidated financial statements

 

 

$

165,981

 

 

 

 

 

$

167,588

 

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

Quarter-Ended

Year-Ended

Period End Balance Sheet

Sep-21

Jun-21

Mar-21

Dec-20

Sep-20

Dec-20

Securities

$

2,337,105

 

$

2,166,853

 

$

1,935,731

 

$

1,628,122

 

$

1,667,698

 

$

1,628,122

 

Total Loans

5,096,778

 

5,175,129

 

5,292,793

 

5,260,327

 

5,398,297

 

5,260,327

 

Allowance for credit losses

46,259

 

47,505

 

49,339

 

51,669

 

52,293

 

51,669

 

Total assets

8,113,110

 

7,988,208

 

8,095,342

 

7,622,171

 

7,794,502

 

7,622,171

 

Total deposits

7,090,898

 

6,837,000

 

6,946,541

 

6,437,752

 

6,601,238

 

6,437,752

 

Federal funds purchased and securities sold under agreements to repurchase

72,490

 

52,134

 

47,496

 

65,845

 

63,573

 

65,845

 

Other borrowings

110,000

 

245,000

 

265,000

 

265,000

 

285,000

 

265,000

 

Trust preferred debentures

0

 

8,799

 

13,260

 

13,220

 

17,163

 

13,220

 

Total common equity

720,851

 

726,779

 

708,493

 

716,277

 

712,104

 

716,277

 

Total equity

722,357

 

728,253

 

709,936

 

717,689

 

713,611

 

717,689

 

Average Balance Sheet

 

 

 

 

 

 

Average earning assets

$

7,753,700

 

$

7,609,792

 

$

7,475,846

 

$

7,408,335

 

$

7,204,049

 

$

6,868,958

 

Average assets

8,102,070

 

7,949,946

 

7,826,672

 

7,758,159

 

7,582,009

 

7,358,478

 

Average interest-bearing liabilities

5,086,753

 

5,030,800

 

5,036,451

 

5,010,037

 

4,861,890

 

4,793,154

 

Average equity

733,117

 

721,336

 

720,718

 

719,114

 

709,484

 

699,554

 

Share data

 

 

 

 

 

 

Weighted average shares outstanding (basic)

14,494,533

 

14,654,774

 

14,676,410

 

14,715,124

 

14,697,532

 

14,703,390

 

Weighted average shares outstanding (diluted)

14,568,334

 

14,737,735

 

14,757,558

 

14,751,303

 

14,727,741

 

14,742,040

 

Period-end shares outstanding

14,659,195

 

14,829,873

 

14,906,785

 

14,928,479

 

14,926,252

 

14,928,479

 

Common equity book value per share

$

49.17

 

$

49.01

 

$

47.53

 

$

47.98

 

$

47.71

 

$

47.98

 

Income Statement

 

 

 

 

 

 

Net interest income

$

56,098

 

$

54,846

 

$

55,037

 

$

57,751

 

$

58,253

 

$

225,339

 

(Credit) provision for credit loss expense (5)

(1,232

)

(3,071

)

(1,830

)

(205

)

(218

)

17,213

 

Noninterest income

20,854

 

18,858

 

19,983

 

18,836

 

18,887

 

73,860

 

Noninterest expense (5)

50,180

 

47,442

 

44,511

 

46,616

 

46,766

 

184,320

 

Income tax expense

6,630

 

6,471

 

6,680

 

6,145

 

6,330

 

19,924

 

Net income attributable to Tompkins Financial Corporation

21,342

 

22,831

 

25,626

 

23,978

 

24,230

 

77,588

 

Noncontrolling interests

32

 

31

 

33

 

53

 

32

 

154

 

Basic earnings per share (4)

1.46

 

1.55

 

1.73

 

1.61

 

1.63

 

5.22

 

Diluted earnings per share (4)

1.45

 

1.54

 

1.72

 

1.61

 

1.63

 

5.20

 

Nonperforming Assets

 

 

 

 

 

 

Nonaccrual loans and leases

$

47,941

 

$

48,019

 

$

41,656

 

$

38,976

 

$

26,944

 

$

38,976

 

Loans and leases 90 days past due and accruing

7,463

 

0

 

0

 

0

 

0

 

0

 

Troubled debt restructuring not included above

5,343

 

5,776

 

6,069

 

6,803

 

6,864

 

6,803

 

Total nonperforming loans and leases

60,747

 

53,795

 

47,725

 

45,779

 

33,808

 

45,779

 

OREO

135

 

88

 

88

 

88

 

196

 

88

 

Total nonperforming assets

$

60,882

 

$

53,883

 

$

47,813

 

$

45,867

 

$

34,004

 

$

45,867

 

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

 

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Sep-21

Jun-21

Mar-21

Dec-20

Sep-20

Dec-20

Loans and leases 30-89 days past due and accruing

$

1,436

 

$

1,692

 

$

1,790

 

$

3,012

 

$

6,875

 

$

3,012

 

Loans and leases 90 days past due and accruing

7,463

 

0

 

0

 

0

 

0

 

0

 

Total loans and leases past due and accruing

8,899

 

1,692

 

1,790

 

3,012

 

6,875

 

3,012

 

Allowance for Credit Losses

Balance at beginning of period

$

47,505

 

$

49,339

 

$

51,669

 

$

52,293

 

 

$

52,082

 

$

39,892

 

Impact of adopting ASC 326

0

 

0

 

0

 

0

 

 

0

 

(2,534

)

(Credit) provision for credit losses

(1,177

)

(2,718

)

(2,510

)

6

 

 

199

 

16,151

 

Net loan and lease charge-offs (recoveries)

69

 

(884

)

(180

)

630

 

 

(12

)

1,840

 

Allowance for credit losses at end of period

$

46,259

 

$

47,505

 

$

49,339

 

$

51,669

 

 

$

52,293

 

$

51,669

 

 

 

 

 

 

 

 

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

$

2,247

 

$

2,600

 

$

1,920

 

$

2,131

 

 

$

2,548

 

$

477

 

Impact of adopting ASC 326

0

 

0

 

0

 

0

 

 

0

 

381

 

(Credit) provision for credit losses

(55

)

(353

)

680

 

(211

)

 

(417

)

1,062

 

Allowance for credit losses at end of period

$

2,192

 

$

2,247

 

$

2,600

 

$

1,920

 

 

$

2,131

 

$

1,920

 

Loan Classification - Total Portfolio

 

 

 

 

 

 

Special Mention

$

98,253

 

$

108,269

 

$

116,689

 

$

121,253

 

$

122,652

 

$

121,253

 

Substandard

70,213

 

62,992

 

68,487

 

68,645

 

45,384

 

68,645

 

Ratio Analysis

 
 

Credit Quality

 

 

 

 

 

 

Nonperforming loans and leases/total loans and leases

1.19

%

1.04

%

0.90

%

0.87

%

0.63

%

0.87

%

Nonperforming assets/total assets

0.75

%

0.67

%

0.59

%

0.60

%

0.44

%

0.60

%

Allowance for credit losses/total loans and leases

0.91

%

0.92

%

0.93

%

0.98

%

0.97

%

0.98

%

Allowance/nonperforming loans and leases

76.15

%

88.31

%

103.38

%

112.87

%

154.68

%

112.87

%

Net loan and lease losses annualized/total average loans and leases

0.01

%

(0.07

)%

(0.01

)%

0.05

%

0.00

%

0.04

%

Capital Adequacy

 

 

 

 

 

 

Tier 1 Capital (to average assets)

8.54

%

8.79

%

8.89

%

8.75

%

8.85

%

8.75

%

Total Capital (to risk-weighted assets)

14.21

%

14.62

%

14.62

%

14.39

%

14.26

%

14.39

%

Profitability (period-end)

 

 

 

 

 

 

Return on average assets *

1.05

%

1.15

%

1.33

%

1.23

%

1.27

%

1.05

%

Return on average equity *

11.55

%

12.70

%

14.42

%

13.26

%

13.59

%

11.09

%

Net interest margin (TE) *

2.89

%

2.91

%

3.01

%

3.12

%

3.26

%

3.31

%

* Quarterly ratios have been annualized

(1) Average balances and yields on available-for-sale securities are based on historical amortized cost.

(2) Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2021 and 2020 to increase tax exempt interest income to taxable-equivalent basis.

(3) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

(4) Earnings per share for the full fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.

(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.

 

Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753

Source: Tompkins Financial Corporation