Tompkins Financial Corporation Reports Third Quarter Financial Results

Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.30 for the third quarter of 2024, up 18.2% from the immediate prior quarter, and up 155.3% from the diluted earnings (loss) per share of $(2.35) reported in the third quarter of 2023. Net income for the third quarter of 2024 was $18.6 million, up $3.0 million or 18.9% compared to the second quarter of 2024, and up $52.0 million, or 155.9%, when compared to the net loss of $(33.4) million reported for the third quarter of 2023. The increase in diluted earnings per share and net income compared to the results for the third quarter of 2023 largely reflects the Company's sale of $429.6 million of available-for-sale securities, which resulted in a pre-tax loss of $62.9 million (or $3.34 per share) in the third quarter of 2023.

For the nine months ended September 30, 2024, diluted earnings (loss) per share were $3.59, up from $(0.39) for the nine months ended September 30, 2023. Year-to-date net income (loss) was $51.2 million for the nine months ended September 30, 2024, up $56.7 million when compared to $(5.5) million for the prior year period. The growth in year-to-date diluted earnings per share and net income was mainly due the Company's sale of $510.5 million of available-for-sale securities which resulted in a pre-tax loss of $70.0 million (or $3.69 per share) for the nine months ended September 30, 2023.

Tompkins President and CEO, Stephen Romaine, commented, "Our third quarter net income was up over 18% as compared to the second quarter, driven by a strengthening net interest margin and growth across our business. For the third quarter our net interest margin expanded 6 basis points, loan balances grew over 8% annualized and our fee-based services continue to provide diversified growing revenue as total noninterest income represented 31% of total revenue. Year-to-date, our operating results were further supported by lower expenses, as noninterest expenses were down 1.5% as compared to prior year. As we are seeing improving profitability we believe that we remain well positioned to continue to drive growth through quality customer relationships supported by our strong capital and liquidity."

SELECTED HIGHLIGHTS FOR THE PERIOD:

  • Net interest margin for the third quarter of 2024 was 2.79%, improved from the immediate prior quarter of 2.73%, and the 2.75% reported for the same period of 2023.
  • Total average cost of funds for the third quarter of 2024 was up 5 basis points compared to the second quarter of 2024, down from a 10 basis point increase from the first quarter of 2024 to the second quarter of 2024.
  • Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the third quarter of 2024 were up $648,000 or 3.2% compared to the third quarter of 2023.
  • Total noninterest expenses for the third quarter of 2024 were in line with the second quarter of 2024 and the third quarter of 2023.
  • Total loans at September 30, 2024 were up $119.4 million, or 2.1% (8.2% on an annualized basis) compared to June 30, 2024, and up $446.4 million, or 8.2%, from September 30, 2023.
  • Total deposits at September 30, 2024 were $6.6 billion, up $292.0 million, or 4.7%, from June 30, 2024, and down $45.5 million, or 0.7%, from September 30, 2023.
  • Loan to deposit ratio at September 30, 2024 was 89.4%, compared to 91.7% at June 30, 2024, and 82.1% at September 30, 2023.
  • Regulatory Tier 1 capital to average assets was 9.19% at September 30, 2024, up compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.

NET INTEREST INCOME

Net interest income was $53.2 million for the third quarter of 2024, up $2.2 million or 4.4% compared to the second quarter of 2024, and $2.2 million or 4.3% compared to the third quarter of 2023. The increase in net interest income compared to both the second quarter of 2024, and third quarter of 2023, resulted primarily from the increase in average loan balances and the average yield on those loan balances, partially offset by the increase in cost of deposits.

For the nine months ended September 30, 2024, net interest income was $154.8 million, down $2.3 million or 1.5% when compared to the same period in 2023.

Net interest margin was 2.79% for the third quarter of 2024, up 6 basis points when compared to the immediate prior quarter, and up 4 basis points from the 2.75% reported for the third quarter of 2023. The increase in net interest margin, when compared to the prior periods, was mainly driven by higher yields on interest earning assets and higher average loan balances, and was partially offset by higher funding costs.

Average loans for the quarter ended September 30, 2024 were up $143.4 million, or 2.5%, from the second quarter of 2024, and were up $445.7 million, or 8.3%, compared to the same period prior year. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended September 30, 2024 was 4.66%, which was up from 4.56% for the quarter ended June 30, 2024, and up from 4.06% for the quarter ended September 30, 2023.

Average total deposits of $6.4 billion for the third quarter of 2024 were up $41.4 million, or 0.7%, compared to the second quarter of 2024, and down $67.0 million or 1.0% compared to the same period in 2023. The cost of interest-bearing deposits of 2.35% for the third quarter of 2024 was up 8 basis points from 2.27% for the second quarter of 2024, and up 61 basis points from 1.74% for the third quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2024 was 28.9% compared to 29.1% for the second quarter of 2024, and 31.0% for the third quarter of 2023. The average cost of interest-bearing liabilities for the third quarter of 2024 of 2.71% represents an increase of 7 basis points over the second quarter of 2024, and an increase of 73 basis points over the same period in 2023.

NONINTEREST INCOME

Noninterest income of $23.4 million for the third quarter of 2024 was up $65.0 million or 156.2% compared to the same period in 2023. Year-to-date noninterest income of $67.3 million was up $75.9 million or 881.7% compared to the same period in 2023. The increase in quarterly and year-to-date noninterest income compared to the same periods in 2023 was mainly due to the $62.9 million and $70.0 million, respectively, pre-tax loss on the sale of available-for-sale securities in 2023 as discussed above. Other income was up $1.3 million for the quarter ended September 30, 2024 compared to the same period in 2023, and included increases in gains on loan sales, derivative swap fee income, and BOLI income. Also included in the increase for the third quarter of 2024 over the same period prior year were fee-based revenues which included wealth management fees, up $583,000, service charges on deposit accounts, up $118,000, card services income, up $61,000.

NONINTEREST EXPENSE

Noninterest expense was $49.9 million for the third quarter of 2024, which was in line with the third quarter of 2023. Year-to-date noninterest expense for the period ended September 30, 2024 was $149.7 million, a decrease of $2.3 million or 1.5% compared to the $152.0 million reported for the same period in 2023. The year-over-year decrease was mainly driven by lower other expenses (legal fees, marketing, professional fees, retirement plan expense, and travel and meeting expense), partially offset by higher FDIC insurance expense.

INCOME TAX EXPENSE

The provision for income tax expense was $5.9 million for an effective rate of 23.9% for the third quarter of 2024, compared to tax benefit of $8.3 million and an effective rate of 20.0% for the same quarter in 2023. For the nine months ended September 30, 2024, the provision for income tax expense was $16.0 million and the effective tax rate was 23.7% compared to a tax benefit of $619,000 and an effective tax rate of 10.3% for the same period in 2023. Lower tax expense for both the quarter and year-to-date periods in 2023 was mainly a result of lower income associated with the loss on the sale of securities described above.

ASSET QUALITY

The allowance for credit losses represented 0.94% of total loans and leases at September 30, 2024, up from 0.92% reported at both June 30, 2024 and December 31, 2023. The increase in the allowance for credit losses coverage ratio was driven primarily by updated economic forecasts for unemployment and gross domestic product for the quarter, as well as model assumption updates for prepayment speeds, curtailment rates, and recovery lag. The increase in allowance for credit losses was partially offset by lower off-balance sheet reserves due to model changes related to utilization rates and a decrease in loan pipeline. The ratio of the allowance to total nonperforming loans and leases was 88.51% at September 30, 2024, compared to 84.94% at June 30, 2024, and 156.96% at September 30, 2023. The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below.

Provision for credit losses for the third quarter of 2024 was $2.2 million compared to $1.2 million for the same period in 2023. Provision for credit losses for the nine months ended September 30, 2024 was $5.2 million compared to $2.6 million for the nine months ended September 30, 2023. The increase in provision expense for the quarter and year-to-date periods compared to the same periods in 2023 was mainly driven by loan growth which was up $119.4 million or 2.1%, and $446.4 million or 8.2%, respectively, and the increase in net charge-offs in 2024 over 2023. Net charge-offs for three and nine months ended September 30, 2024 were $912,000 and $1.6 million, respectively, compared to net charge-offs of $177,000 and net recoveries of $1.1 million for the same periods in 2023.

Nonperforming assets represented 0.78% of total assets at September 30, 2024, down slightly from 0.79% reported at June 30, 2024, and up compared to 0.41% at September 30, 2023. At September 30, 2024, nonperforming loans and leases totaled $62.6 million, compared to $62.5 million at June 30, 2024 and $31.4 million at September 30, 2023. The increase in nonperforming loans and leases at September 30, 2024 compared to September 30, 2023 was mainly due to the addition in the fourth quarter of 2023 of one relationship totaling approximately $33.3 million with two commercial real estate properties included in the office space and mixed use properties portion of the commercial real estate portfolio. The Company believes that the existing collateral securing the loans was sufficient to cover the exposure as of September 30, 2024.

Special Mention and Substandard loans and leases totaled $126.0 million at September 30, 2024, compared to $116.2 million reported at June 30, 2024, and $122.9 million reported at September 30, 2023.

CAPITAL POSITION

Capital ratios at September 30, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.21% at September 30, 2024, compared to 13.26% at June 30, 2024, and 13.46% at September 30, 2023. The ratio of Tier 1 capital to average assets was 9.19% at September 30, 2024, compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.

LIQUIDITY POSITION

The Company's liquidity position at September 30, 2024 was stable and consistent with the immediate prior quarter end. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank's Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintained ready access to liquidity of $1.4 billion, or 18.0% of total assets at September 30, 2024. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At September 30, 2024 the Company had an available borrowing capacity at the FHLB of $769.5 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At September 30, 2024 the available borrowing capacity with the Federal Reserve Bank was $142.0 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at September 30, 2024, the Company maintained $508.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a banking and 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 Community Bank and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. 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. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", as well as the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to nonperforming loans and future growth. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to 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 and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual Report 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; our ability to attract and retain deposits and other sources of liquidity; gross domestic product growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; 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, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; technological developments and changes; cybersecurity incidents and threats; 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; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact of national and global events, including the response to bank failures, war and geopolitical matters (including the war in Israel and surrounding regions and the war in Ukraine), widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. 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) (Unaudited)

As of

As of

ASSETS

9/30/2024

12/31/2023

 

 

(Audited)

 

 

 

Cash and noninterest bearing balances due from banks

$

110,375

 

$

67,212

 

Interest bearing balances due from banks

 

21,945

 

 

12,330

 

Cash and Cash Equivalents

 

132,320

 

 

79,542

 

 

 

 

Available-for-sale debt securities, at fair value (amortized cost of $1,410,405 at September 30, 2024 and $1,548,482 at December 31, 2023)

 

1,309,279

 

 

1,416,650

 

Held-to-maturity debt securities, at amortized cost (fair value of $276,599 at September 30, 2024 and $267,455 at December 31, 2023)

 

312,446

 

 

312,401

 

Equity securities, at fair value

 

801

 

 

787

 

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

 

5,881,261

 

 

5,605,935

 

Less: Allowance for credit losses

 

55,384

 

 

51,584

 

Net Loans and Leases

 

5,825,877

 

 

5,554,351

 

 

 

 

Federal Home Loan Bank and other stock

 

30,936

 

 

33,719

 

Bank premises and equipment, net

 

77,603

 

 

79,687

 

Corporate owned life insurance

 

75,966

 

 

67,884

 

Goodwill

 

92,602

 

 

92,602

 

Other intangible assets, net

 

2,238

 

 

2,327

 

Accrued interest and other assets

 

146,359

 

 

179,799

 

Total Assets

$

8,006,427

 

$

7,819,749

 

LIABILITIES

 

 

Deposits:

 

 

Interest bearing:

 

 

Checking, savings and money market

 

3,655,041

 

 

3,484,878

 

Time

 

1,042,007

 

 

998,013

 

Noninterest bearing

 

1,880,848

 

 

1,916,956

 

Total Deposits

 

6,577,896

 

 

6,399,847

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

67,506

 

 

50,996

 

Other borrowings

 

539,327

 

 

602,100

 

Other liabilities

 

100,350

 

 

96,872

 

Total Liabilities

$

7,285,079

 

$

7,149,815

 

EQUITY

 

 

Tompkins Financial Corporation shareholders' equity:

 

 

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,426,922 at September 30, 2024; and 14,441,830 at December 31, 2023

 

1,443

 

 

1,444

 

Additional paid-in capital

 

299,741

 

 

297,183

 

Retained earnings

 

526,423

 

 

501,510

 

Accumulated other comprehensive loss

 

(101,200

)

 

(125,005

)

Treasury stock, at cost – 129,317 shares at September 30, 2024, and 132,097 shares at December 31, 2023

 

(6,552

)

 

(6,610

)

Total Tompkins Financial Corporation Shareholders’ Equity

 

719,855

 

 

668,522

 

Noncontrolling interests

 

1,493

 

 

1,412

 

Total Equity

$

721,348

 

$

669,934

 

Total Liabilities and Equity

$

8,006,427

 

$

7,819,749

 

 

 

 

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

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

Three Months Ended

 

Nine Months Ended

 

9/30/2024

 

06/30/2024

 

9/30/2023

 

9/30/2024

 

9/30/2023

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

Loans

$

77,814

 

$

73,646

 

$

67,030

 

$

223,059

 

$

191,399

 

Due from banks

 

168

 

 

184

 

 

125

 

 

506

 

 

447

 

Available-for-sale debt securities

 

9,037

 

 

9,371

 

 

6,599

 

 

28,019

 

 

19,960

 

Held-to-maturity debt securities

 

1,222

 

 

1,219

 

 

1,221

 

 

3,659

 

 

3,654

 

Federal Home Loan Bank and other stock

 

888

 

 

820

 

 

490

 

 

2,309

 

 

1,113

 

Total Interest and Dividend Income

 

89,129

 

$

85,240

 

$

75,465

 

$

257,552

 

$

216,573

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Time certificates of deposits of $250,000 or more

 

4,158

 

 

4,048

 

 

3,158

 

 

12,216

 

 

7,472

 

Other deposits

 

22,553

 

 

21,236

 

 

16,348

 

 

64,213

 

 

39,861

 

Federal funds purchased and securities sold under agreements to repurchase

 

11

 

 

11

 

 

15

 

 

35

 

 

44

 

Other borrowings

 

9,214

 

 

8,992

 

 

4,931

 

 

26,267

 

 

12,041

 

Total Interest Expense

 

35,936

 

 

34,287

 

 

24,452

 

 

102,731

 

 

59,418

 

Net Interest Income

 

53,193

 

 

50,953

 

 

51,013

 

 

154,821

 

 

157,155

 

Less: Provision for credit loss expense

 

2,174

 

 

2,172

 

 

1,150

 

 

5,200

 

 

2,578

 

Net Interest Income After Provision for Credit Loss Expense

 

51,019

 

 

48,781

 

 

49,863

 

 

149,621

 

 

154,577

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

Insurance commissions and fees

 

11,283

 

 

9,087

 

 

11,397

 

 

30,629

 

 

29,578

 

Wealth management fees

 

4,925

 

 

4,849

 

 

4,342

 

 

14,711

 

 

13,529

 

Service charges on deposit accounts

 

1,872

 

 

1,766

 

 

1,754

 

 

5,434

 

 

5,140

 

Card services income

 

2,921

 

 

3,278

 

 

2,860

 

 

9,138

 

 

8,629

 

Other income

 

2,299

 

 

2,802

 

 

990

 

 

7,321

 

 

4,534

 

Net gain (loss) on securities transactions

 

85

 

 

(6

)

 

(62,967

)

 

65

 

 

(70,019

)

Total Noninterest Income

 

23,385

 

 

21,776

 

 

(41,624

)

 

67,298

 

 

(8,609

)

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

25,664

 

 

24,919

 

 

23,811

 

 

75,280

 

 

73,660

 

Other employee benefits

 

6,276

 

 

6,545

 

 

7,319

 

 

19,232

 

 

20,707

 

Net occupancy expense of premises

 

3,065

 

 

3,139

 

 

3,108

 

 

9,761

 

 

9,734

 

Furniture and fixture expense

 

1,797

 

 

1,910

 

 

2,079

 

 

5,832

 

 

6,238

 

Amortization of intangible assets

 

86

 

 

80

 

 

83

 

 

242

 

 

250

 

Other operating expense

 

12,989

 

 

13,349

 

 

13,466

 

 

39,329

 

 

41,403

 

Total Noninterest Expenses

 

49,877

 

 

49,942

 

 

49,866

 

 

149,676

 

 

151,992

 

Income/(Loss) Before Income Tax Expense/(Benefit)

 

24,527

 

 

20,615

 

 

(41,627

)

 

67,243

 

 

(6,024

)

Income Tax Expense/(Benefit)

 

5,858

 

 

4,902

 

 

(8,304

)

 

15,958

 

 

(619

)

Net Income/(Loss) Attributable to Noncontrolling Interests and Tompkins Financial Corporation

 

18,669

 

 

15,713

 

 

(33,323

)

 

51,285

 

 

(5,405

)

Less: Net Income Attributable to Noncontrolling Interests

 

31

 

 

31

 

 

31

 

 

93

 

 

93

 

Net Income/(Loss) Attributable to Tompkins Financial Corporation

$

18,638

 

 

15,682

 

 

(33,354

)

 

51,192

 

 

(5,498

)

Basic Earnings (Loss) Per Share

$

1.31

 

$

1.10

 

$

(2.35

)

$

3.60

 

$

(0.39

)

Diluted Earnings (Loss) Per Share

$

1.30

 

$

1.10

 

$

(2.35

)

$

3.59

 

$

(0.39

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Quarter Ended

Quarter Ended

 

September 30, 2024

June 30, 2024

 

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

$

13,189

 

$

168

 

5.07

%

$

11,707

 

$

184

 

6.33

%

Securities (1)

 

 

 

 

 

 

 

 

U.S. Government securities

 

1,664,611

 

 

9,740

 

2.33

%

 

1,717,975

 

 

10,067

 

2.36

%

State and municipal (2)

 

87,799

 

 

560

 

2.54

%

 

89,518

 

 

566

 

2.55

%

Other securities

 

3,282

 

 

60

 

7.27

%

 

3,260

 

 

59

 

7.32

%

Total securities

 

1,755,692

 

 

10,360

 

2.35

%

 

1,810,753

 

 

10,692

 

2.38

%

FHLBNY and FRB stock

 

38,534

 

 

888

 

9.17

%

 

37,681

 

 

820

 

8.76

%

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

 

5,830,899

 

 

78,040

 

5.32

%

 

5,687,548

 

 

73,839

 

5.22

%

Total interest-earning assets

 

7,638,314

 

 

89,456

 

4.66

%

 

7,547,689

 

 

85,535

 

4.56

%

Other assets

 

276,610

 

 

 

 

262,372

 

 

 

Total assets

$

7,914,924

 

 

 

$

7,810,061

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$

3,509,116

 

$

16,635

 

1.89

%

$

3,498,746

 

$

15,754

 

1.81

%

Time deposits

 

1,016,949

 

 

10,076

 

3.94

%

 

987,348

 

 

9,530

 

3.88

%

Total interest-bearing deposits

 

4,526,065

 

 

26,711

 

2.35

%

 

4,486,094

 

 

25,284

 

2.27

%

Federal funds purchased & securities sold under agreements to repurchase

 

42,449

 

 

11

 

0.10

%

 

40,298

 

 

11

 

0.11

%

Other borrowings

 

709,474

 

 

9,214

 

5.17

%

 

688,611

 

 

8,992

 

5.25

%

Total interest-bearing liabilities

 

5,277,988

 

 

35,936

 

2.71

%

 

5,215,003

 

 

34,287

 

2.64

%

Noninterest bearing deposits

 

1,838,725

 

 

 

 

1,837,325

 

 

 

Accrued expenses and other liabilities

 

101,679

 

 

 

 

94,764

 

 

 

Total liabilities

 

7,218,392

 

 

 

 

7,147,092

 

 

 

Tompkins Financial Corporation Shareholders’ equity

 

695,057

 

 

 

 

661,523

 

 

 

Noncontrolling interest

 

1,475

 

 

 

 

1,446

 

 

 

Total equity

 

696,532

 

 

 

 

662,969

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

7,914,924

 

 

 

$

7,810,061

 

 

 

Interest rate spread

 

 

 

1.95

%

 

 

 

1.91

%

Net interest income (TE)/margin on earning assets

 

 

 

53,520

 

2.79

%

 

 

 

51,248

 

2.73

%

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

 

 

(327

)

 

 

 

 

(295

)

 

Net interest income

 

 

$

53,193

 

 

 

 

$

50,953

 

 

   

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

 

Quarter Ended

Quarter Ended

 

September 30, 2024

September 30, 2023

 

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

$

13,189

 

$

168

 

5.07

%

$

11,585

 

$

125

 

4.29

%

Securities (1)

 

 

 

 

 

 

 

 

U.S. Government securities

 

1,664,611

 

 

9,740

 

2.33

%

 

1,890,659

 

 

7,294

 

1.53

%

State and municipal (2)

 

87,799

 

 

560

 

2.54

%

 

90,212

 

 

576

 

2.53

%

Other securities

 

3,282

 

 

60

 

7.27

%

 

3,272

 

 

59

 

7.18

%

Total securities

 

1,755,692

 

 

10,360

 

2.35

%

 

1,984,143

 

 

7,929

 

1.59

%

FHLBNY and FRB stock

 

38,534

 

 

888

 

9.17

%

 

24,511

 

 

490

 

7.94

%

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

 

5,830,899

 

 

78,040

 

5.32

%

 

5,385,195

 

 

67,199

 

4.95

%

Total interest-earning assets

 

7,638,314

 

 

89,456

 

4.66

%

 

7,405,434

 

 

75,743

 

4.06

%

Other assets

 

276,610

 

 

 

 

224,442

 

 

 

Total assets

$

7,914,924

 

 

 

$

7,629,876

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$

3,509,116

 

$

16,635

 

1.89

%

$

3,615,395

 

$

12,674

 

1.39

%

Time deposits

 

1,016,949

 

 

10,076

 

3.94

%

 

826,082

 

 

6,832

 

3.28

%

Total interest-bearing deposits

 

4,526,065

 

 

26,711

 

2.35

%

 

4,441,477

 

 

19,506

 

1.74

%

Federal funds purchased & securities sold under agreements to repurchase

 

42,449

 

 

11

 

0.10

%

 

57,624

 

 

15

 

0.10

%

Other borrowings

 

709,474

 

 

9,214

 

5.17

%

 

403,829

 

 

4,931

 

4.84

%

Total interest-bearing liabilities

 

5,277,988

 

 

35,936

 

2.71

%

 

4,902,930

 

 

24,452

 

1.98

%

Noninterest bearing deposits

 

1,838,725

 

 

 

 

1,990,320

 

 

 

Accrued expenses and other liabilities

 

101,679

 

 

 

 

101,646

 

 

 

Total liabilities

 

7,218,392

 

 

 

 

6,994,896

 

 

 

Tompkins Financial Corporation Shareholders’ equity

 

695,057

 

 

 

 

633,494

 

 

 

Noncontrolling interest

 

1,475

 

 

 

 

1,487

 

 

 

Total equity

 

696,532

 

 

 

 

634,980

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

7,914,924

 

 

 

$

7,629,876

 

 

 

Interest rate spread

 

 

 

1.95

%

 

 

 

2.08

%

Net interest income (TE)/margin on earning assets

 

 

 

53,520

 

2.79

%

 

 

 

51,291

 

2.75

%

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

 

 

(327

)

 

 

 

 

(278

)

 

Net interest income

 

 

$

53,193

 

 

 

 

$

51,013

 

 

   

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

 

Year to Date Period Ended

Year to Date Period Ended

 

September 30, 2024

September 30, 2023

 

Average

 

 

 

Average

 

 

 

 

Balance

 

 

Average

Balance

 

 

Average

(Dollar amounts in thousands)

(YTD)

 

Interest

Yield/Rate

(YTD)

 

Interest

Yield/Rate

ASSETS

 

 

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

 

 

Interest-bearing balances due from banks

$

12,369

 

$

506

 

5.46

%

$

12,630

 

$

447

 

4.73

%

Securities (1)

 

 

 

 

 

 

 

 

U.S. Government securities

 

1,712,727

 

 

30,109

 

2.35

%

 

1,965,039

 

 

22,022

 

1.50

%

State and municipal (2)

 

89,063

 

 

1,697

 

2.55

%

 

91,858

 

 

1,764

 

2.57

%

Other securities

 

3,273

 

 

179

 

7.31

%

 

3,281

 

 

169

 

6.87

%

Total securities

 

1,805,063

 

 

31,985

 

2.37

%

 

2,060,178

 

 

23,955

 

1.55

%

FHLBNY and FRB stock

 

36,948

 

 

2,309

 

8.35

%

 

21,519

 

 

1,113

 

6.93

%

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

 

5,713,780

 

 

223,656

 

5.23

%

 

5,314,221

 

 

191,946

 

4.83

%

Total interest-earning assets

 

7,568,160

 

 

258,456

 

4.56

%

 

7,408,548

 

 

217,461

 

3.92

%

Other assets

 

274,143

 

 

 

 

224,594

 

 

 

Total assets

$

7,842,303

 

 

 

$

7,633,142

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

Interest bearing checking, savings, & money market

$

3,517,993

 

$

47,424

 

1.80

%

$

3,715,931

 

$

31,905

 

1.15

%

Time deposits

 

997,800

 

 

29,005

 

3.88

%

 

749,198

 

 

15,428

 

2.75

%

Total interest-bearing deposits

 

4,515,793

 

 

76,429

 

2.26

%

 

4,465,129

 

 

47,333

 

1.42

%

Federal funds purchased & securities sold under agreements to repurchase

 

43,837

 

 

35

 

0.11

%

 

57,077

 

 

44

 

0.10

%

Other borrowings

 

673,809

 

 

26,267

 

5.21

%

 

351,600

 

 

12,041

 

4.58

%

Total interest-bearing liabilities

 

5,233,439

 

 

102,731

 

2.62

%

 

4,873,806

 

 

59,418

 

1.63

%

Noninterest bearing deposits

 

1,835,776

 

 

 

 

2,019,917

 

 

 

Accrued expenses and other liabilities

 

97,593

 

 

 

 

100,491

 

 

 

Total liabilities

 

7,166,808

 

 

 

 

6,994,214

 

 

 

Tompkins Financial Corporation Shareholders’ equity

 

674,048

 

 

 

 

637,472

 

 

 

Noncontrolling interest

 

1,447

 

 

 

 

1,456

 

 

 

Total equity

 

675,495

 

 

 

 

638,928

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

7,842,303

 

 

 

$

7,633,142

 

 

 

Interest rate spread

 

 

 

1.94

%

 

 

 

2.29

%

Net interest income (TE)/margin on earning assets

 

 

 

155,725

 

2.75

%

 

 

 

158,043

 

2.85

%

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

 

 

(904

)

 

 

 

 

(888

)

 

Net interest income

 

 

$

154,821

 

 

 

 

$

157,155

 

 

   

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

Quarter-Ended

Year-Ended

Period End Balance Sheet

Sep-24

Jun-24

Mar-24

Dec-23

Sep-23

Dec-23

Securities

$

1,622,526

$

1,630,654

$

1,679,542

$

1,729,838

$

1,701,636

$

1,729,838

Total Loans

 

5,881,261

 

5,761,864

 

5,640,524

 

5,605,935

 

5,434,860

 

5,605,935

Allowance for credit losses

 

55,384

 

53,059

 

51,704

 

51,584

 

49,336

 

51,584

Total assets

 

8,006,427

 

7,869,522

 

7,778,034

 

7,819,749

 

7,691,162

 

7,819,749

Total deposits

 

6,577,896

 

6,285,896

 

6,449,616

 

6,399,847

 

6,623,436

 

6,399,847

Federal funds purchased and securities sold under agreements to repurchase

 

67,506

 

35,989

 

43,681

 

50,996

 

56,120

 

50,996

Other borrowings

 

539,327

 

773,627

 

522,600

 

602,100

 

296,800

 

602,100

Total common equity

 

719,855

 

674,630

 

667,906

 

668,522

 

610,851

 

668,522

Total equity

 

721,348

 

676,093

 

669,338

 

669,934

 

612,356

 

669,934

Average Balance Sheet

 

 

 

 

 

 

Average earning assets

$

7,638,314

$

7,547,689

$

7,517,705

$

7,407,976

$

7,405,434

$

7,408,404

Average assets

 

7,914,924

 

7,810,061

 

7,801,125

 

7,666,982

 

7,629,876

 

7,641,672

Average interest-bearing liabilities

 

5,277,988

 

5,215,003

 

5,206,836

 

5,020,544

 

4,902,930

 

4,910,792

Average equity

 

696,532

 

662,969

 

666,752

 

622,280

 

634,980

 

634,732

Share data

 

 

 

 

 

 

Weighted average shares outstanding (basic)

 

14,215,607

 

14,214,574

 

14,211,910

 

14,194,503

 

14,185,763

 

14,254,661

Weighted average shares outstanding (diluted)

 

14,283,255

 

14,239,626

 

14,238,357

 

14,246,024

 

14,224,748

 

14,301,221

Period-end shares outstanding

 

14,394,255

 

14,395,204

 

14,405,019

 

14,405,920

 

14,350,177

 

14,405,920

Common equity book value per share

$

50.01

$

46.86

$

46.37

$

46.41

$

42.57

$

46.41

Tangible book value per share (Non-GAAP)**

$

43.50

$

40.35

$

39.85

$

39.88

$

36.01

$

39.88

**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP.

Income Statement

 

 

 

 

 

 

Net interest income

$

53,193

$

50,953

$

50,675

$

52,359

$

51,013

 

$

209,514

Provision for credit loss expense (5)

 

2,174

 

2,172

 

854

 

1,761

 

1,150

 

 

4,339

Noninterest income

 

23,385

 

21,776

 

22,137

 

18,850

 

(41,624

)

 

10,241

Noninterest expense (5)

 

49,877

 

49,942

 

49,857

 

51,300

 

49,866

 

 

203,292

Income tax expense/(benefit)

 

5,858

 

4,902

 

5,198

 

3,114

 

(8,304

)

 

2,495

Net income/(loss) attributable to Tompkins Financial Corporation

 

18,638

 

15,682

 

16,872

 

15,003

 

(33,354

)

 

9,505

Noncontrolling interests

 

31

 

31

 

31

 

31

 

31

 

 

124

Basic earnings (loss) per share (4)

 

1.31

 

1.10

 

1.19

 

1.06

 

(2.35

)

 

0.66

Diluted earnings (loss) per share (4)

 

1.30

 

1.10

 

1.18

 

1.05

 

(2.35

)

 

0.66

Nonperforming Assets

 

 

 

 

 

 

Nonaccrual loans and leases

$

62,381

$

62,253

$

62,544

$

62,165

$

31,381

$

62,165

Loans and leases 90 days past due and accruing

 

193

 

215

 

151

 

101

 

52

 

101

Total nonperforming loans and leases

 

62,574

 

62,468

 

62,695

 

62,266

 

31,433

 

62,266

OREO

 

81

 

80

 

0

 

131

 

0

 

131

Total nonperforming assets

$

62,655

$

62,548

$

62,695

$

62,397

$

31,433

$

62,397

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

 

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Sep-24

Jun-24

Mar-24

Dec-23

Sep-23

Dec-23

Loans and leases 30-89 days past due and accruing

$

7,031

$

5,286

$

8,015

$

4,210

$

40,893

$

4,210

Loans and leases 90 days past due and accruing

 

193

 

215

 

151

 

101

 

52

 

101

Total loans and leases past due and accruing

 

7,224

 

5,501

 

8,166

 

4,311

 

40,945

 

4,311

Allowance for Credit Losses

Balance at beginning of period

$

53,059

 

$

51,704

$

51,584

$

49,336

 

$

48,545

$

45,934

 

Impact of adopting ASC 326

 

0

 

 

0

 

0

 

0

 

 

0

 

64

 

Provision for credit losses

 

3,237

 

 

1,864

 

348

 

2,658

 

 

968

$

4,865

 

Net loan and lease charge-offs (recoveries)

 

912

 

 

509

 

228

 

410

 

 

177

$

(721

)

Allowance for credit losses at end of period

$

55,384

 

$

53,059

$

51,704

$

51,584

 

$

49,336

$

51,584

 

 

 

 

 

 

 

 

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

$

3,084

 

$

2,776

$

2,270

$

3,167

 

$

2,985

$

2,796

 

Provision (credit) for credit losses

 

(1,063

)

 

308

 

506

 

(897

)

 

182

$

(526

)

Allowance for credit losses at end of period

$

2,021

 

$

3,084

$

2,776

$

2,270

 

$

3,167

$

2,270

 

Loan Classification - Total Portfolio

 

 

 

 

 

 

Special Mention

$

58,758

$

48,712

$

46,302

$

50,368

$

65,993

$

50,368

Substandard

 

67,261

 

67,509

 

72,412

 

72,717

 

56,947

 

72,717

Ratio Analysis

Credit Quality

 

 

 

 

 

 

Nonperforming loans and leases/total loans and leases

1.06

%

1.08

%

1.11

%

1.11

%

0.58

%

1.11

%

Nonperforming assets/total assets

0.78

%

0.79

%

0.81

%

0.80

%

0.41

%

0.80

%

Allowance for credit losses/total loans and leases

0.94

%

0.92

%

0.92

%

0.92

%

0.91

%

0.92

%

Allowance/nonperforming loans and leases

88.51

%

84.94

%

82.47

%

82.84

%

156.96

%

82.84

%

Net loan and lease losses (recoveries) annualized/total average loans and leases

0.06

%

0.04

%

0.02

%

0.03

%

0.01

%

(0.01

)%

Capital Adequacy

 

 

 

 

 

 

Tier 1 Capital (to average assets)

9.19

%

9.15

%

9.08

%

9.08

%

9.01

%

9.08

%

Total Capital (to risk-weighted assets)

13.21

%

13.26

%

13.43

%

13.36

%

13.46

%

13.36

%

Profitability (period-end)

 

 

 

 

 

 

Return on average assets *

0.94

%

0.81

%

0.87

%

0.78

%

(1.73

)%

0.12

%

Return on average equity *

10.65

%

9.51

%

10.18

%

9.56

%

(20.84

)%

1.50

%

Net interest margin (TE) *

2.79

%

2.73

%

2.73

%

2.82

%

2.75

%

2.84

%

Average yield on interest-earning assets*

4.66

%

4.56

%

4.47

%

4.34

%

4.06

%

4.03

%

Average cost of deposits*

1.67

%

1.61

%

1.54

%

1.43

%

1.20

%

1.09

%

Average cost of funds*

2.01

%

1.96

%

1.86

%

1.62

%

1.41

%

1.27

%

* Quarterly ratios have been annualized

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

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (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 below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.

Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP)

 

Quarter-Ended

Year-Ended

 

Sep-24

Jun-24

Mar-24

Dec-23

Sep-23

Dec-23

Common equity book value per share (GAAP)

$

50.01

$

46.86

$

46.37

$

46.41

$

42.57

$

46.41

Total common equity

$

719,855

$

674,630

$

667,906

$

668,522

$

610,851

$

668,522

Less: Goodwill and intangibles

 

93,760

 

93,847

 

93,926

 

94,003

 

94,086

 

94,003

Tangible common equity (Non-GAAP)

 

626,095

 

580,783

 

573,980

 

574,519

 

516,765

 

574,519

Ending shares outstanding

 

14,394,255

 

14,395,204

 

14,405,019

 

14,405,920

 

14,350,177

 

14,405,920

Tangible book value per share (Non-GAAP)

$

43.50

$

40.35

$

39.85

$

39.88

$

36.01

$

39.88

(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 2024 and 2023 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, 2023.

(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.

Contacts

Stephen S. Romaine, President & CEO

Matthew Tomazin, Executive VP, CFO & Treasurer

Tompkins Financial Corporation (888) 503-5753

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