Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Tompkins Financial Corporation Reports Second Quarter Earnings By: Tompkins Financial Corporation via Business Wire July 21, 2023 at 09:00 AM EDT Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $0.59 for the second quarter of 2023, down 56.3% from the immediate prior quarter, and down 59.3% from diluted earnings per share of $1.45 reported in the second quarter of 2022. Net income for the second quarter of 2023 was $8.5 million, down $12.4 million, or 59.4%, when compared to the $20.9 million reported for the same period in 2022. Results for the current quarter were negatively affected by the sale of $80.9 million of available-for-sale securities. Though the sale resulted in a $7.1 million pre-tax loss on securities transactions during the quarter (or $0.37 per share), the transaction is expected to have a positive impact on future earnings. The available-for-sale securities sold in the second quarter of 2023 had an average yield of 0.48%, with a remaining average life of 2.3 years. Approximately $15.0 million of the proceeds from sale were reinvested in available-for-sale securities with an average yield of approximately 4.30%, while the remaining proceeds were used to pay down approximately $65.0 million of overnight borrowings with the Federal Home Loan Bank ("FHLB"). For the year-to-date period ended June 30, 2023, diluted earnings per share were $1.94, down 36.4% from $3.05 for the same year-to-date period in 2022. Year-to-date net income was $27.9 million for the six month period ended June 30, 2023, down $16.3 million, or 36.9%, when compared to $44.1 million for the same period in 2022. Year-to-date results were also negatively impacted by the loss on securities transactions described above. Tompkins President and CEO, Stephen Romaine, commented, "The economic environment remains challenging for the banking industry. Despite these challenges, which continue to negatively affect our net interest income, we saw some positive trends during the second quarter and first half of 2023. These included annualized loan growth of 6.0% from the immediate prior quarter, stable noninterest bearing deposit balances when compared to the first quarter this year, and year-to-date annualized fee income growth of 1.3% over that same period in 2022." SELECTED HIGHLIGHTS FOR THE PERIOD: Total loans at June 30, 2023 were $5.4 billion, up 6.0% annualized compared to the immediate prior quarter, and up $189.9 million, or 3.7%, from June 30, 2022. Total deposits at June 30, 2023 were $6.5 billion, down $54.4 million, or 0.84%, from March 31, 2023 and down $314.9 million, or 4.65%, from June 30, 2022. The year-over-year pace of decline of total deposits slowed in the second quarter, when compared to the year-over-year decline of 7.2% over the twelve month period ended March 31, 2023. Loan to deposit ratio remains stable at 83% as compared to 81% for the prior quarter Regulatory Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.63% at March 31, 2023 and 9.02% at June 30, 2022. Total nonperforming assets at June 30, 2023 represented 0.41% of total assets, an increase of 10.8% from the immediate prior quarter. NET INTEREST INCOME Net interest income was $51.9 million for the second quarter of 2023, down from $54.2 million for the first quarter of 2023 and $58.3 million for the second quarter of 2022. Net interest margin was 2.83% for the second quarter of 2023, compared to 2.99% reported for the first quarter of 2023 and 3.09% reported for the second quarter of 2022. The decrease in net interest income and net interest margin from the first quarter of 2023 and the second quarter of 2022 was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment. For the year-to-date period ended June 30, 2023, net interest income was $106.1 million, down $8.7 million or 7.6% when compared to the same period in 2022. Average loans for the quarter ended June 30, 2023 were up $53.4 million, or 1.0%, from the first quarter of 2023, and $189.4 million, or 3.7%, compared to the same period in 2022. The increase in average loans was mainly in the commercial real estate portfolio compared to the first quarter of 2023, and the quarter ended June 30, 2022. The average yield on interest-earning assets for the quarter ended June 30, 2023 was 3.91%, up 10 basis points compared to the quarter ended March 31, 2023, and up 68 basis points compared to the quarter ended June 30, 2022. Average total deposits for the second quarter of 2023 were down $121.4 million, or 1.8%, compared to the first quarter of 2023, and down $414.4 million, or 6.0%, compared to the same period in 2022. The decrease was largely driven by a decline in stimulus funding and a tightening monetary policy that has led to a declining trend in bank deposits on a national level, as reported by the Federal Reserve. The cost of interest-bearing deposits increased to 1.41% for the second quarter of 2023, compared to 1.10% for the first quarter of 2023, and 0.18% for the second quarter of 2022. The cost of interest-bearing deposits for the second quarter of 2023 increased 31 basis points from March 31, 2023, which is down from the 41 basis point increase in the cost of interest-bearing deposits for the first quarter of 2023, compared to the fourth quarter of 2022. Noninterest bearing deposits to total deposits at June 30, 2023, were 31.4% compared to 30.9% at March 31, 2023. The average cost of interest-bearing liabilities for the second quarter of 2023 of 1.64%, represents an increase of 38 basis points over the first quarter of 2023, and an increase of 142 basis points over the same period in 2022. NONINTEREST INCOME Noninterest income of $12.6 million for the second quarter of 2023 was down $6.3 million, or 33.4%, compared to the second quarter of 2022. Year-to-date noninterest income of $33.0 million was down $5.9 million, or 15.2%, compared to the same six month period in 2022. Noninterest income represented 19.6% of total revenue for the quarter ended June 30, 2023, compared to 24.5% for the quarter ended June 30, 2022. The decrease in noninterest income in the second quarter of 2023 was largely due to the sale of available-for-sale securities, which resulted in the recognition of a pre-tax loss of $7.1 million. Partially offsetting the decreases in noninterest income in the second quarter of 2023 compared to the prior year quarter were increases in fee income of $337,000 and an increase in income on bank-owned life insurance of $383,000. NONINTEREST EXPENSE Noninterest expense was $52.0 million for the second quarter of 2023, which was up $2.8 million, or 5.8%, over the second quarter of 2022. For the year-to-date period, noninterest expense of $102.1 million was up $6.2 million, or 6.4%, from the same period in 2022. The increase in noninterest expense in the second quarter of 2023 over the same quarter last year was mainly in higher personnel-related expenses, up $1.2 million. The increase in personnel-related expenses was mainly in salaries and wages and reflects annual merit adjustments. Significant components that increased in other expenses were professional fees which were up $405,000, other losses which were up $517,000, and marketing which was up $232,000, in each case as compared to the second quarter of 2022. INCOME TAX EXPENSE The Company's effective tax rate was 17.3% for the second quarter of 2023, compared to 23.2% for the same period in 2022. The effective tax rate for the six months ended June 30, 2023 was 21.6%, compared to 23.1% reported for the same period in 2022. The decrease in the effective tax rate for the three and six months ended June 30, 2023, compared to the same periods in 2022 is largely due to the anticipated retention of certain New York State tax benefits. The Company's banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim the benefit is that the consolidated company has qualified average assets of no more than $8.0 billion for the taxable year. Based on current estimates of average assets during 2023, the Company expects to retain the benefits in 2023. ASSET QUALITY The allowance for credit losses represented 0.91% of total loans and leases at June 30, 2023, up from 0.87% at March 31, 2023, and up from 0.85% at June 30, 2022. The ratio of the allowance to total nonperforming loans and leases was 154.76% for the second quarter of 2023, compared to 162.11% at March 31, 2023 and 147.95% at June 30, 2022. Provision for credit losses for the second quarter of 2023 was $2.3 million compared to $856,000 for the same period in 2022. Provision for credit losses for the six months ended June 30, 2023 was $1.4 million, compared to $336,000 for the six months ended June 30, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by weaker economic forecasts, loan growth, and changes in asset quality. Net recoveries for the quarter ended June 30, 2023 were $27,000 compared to net recoveries of $887,000 reported for the same period in 2022. Nonperforming assets represented 0.41% of total assets at June 30, 2023, down from 0.43% at December 31, 2022 and up from the 0.38% reported at June 30, 2022. At June 30, 2023, nonperforming loans and leases totaled $31.4 million, compared to $32.8 million at December 31, 2022 and $29.6 million at June 30, 2022. The increase in loans past due 30-89 days at quarter end June 30, 2023 was mainly due to the inclusion of a $15.3 million commercial real estate loan. Special Mention and Substandard loans and leases totaled $118.1 million at June 30, 2023, reflecting an increase from the $98.3 million reported at December 31, 2022, and $115.0 million at June 30, 2022. The increase over year-end in Special Mention and Substandard was mainly a result of the downgrade of one commercial real estate loan added to Special Mention during the second quarter of 2023 and the downgrade of one commercial real estate loan previously reported as Special Mention. CAPITAL POSITION Capital ratios at June 30, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.48% at June 30, 2023, compared to 14.42% at December 31, 2022 and 14.07% at June 30, 2022. The ratio of Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.34% at December 31, 2022 and 9.02% at June 30, 2022. During the second quarter of 2023, the Company repurchased 108,219 common shares at an aggregate cost of $6.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021. The Company announced today that its Board of Directors has authorized a new Stock Repurchase Program to repurchase up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, from time to time, over the next 24 months. LIQUIDITY POSITION The Company's liquidity position remained stable from the first quarter of 2023. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and FHLB advances. The Company maintains ready access liquidity of $1.7 billion, or 22.3% of total assets at June 30, 2023. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At June 30, 2023 the Company had an available borrowing capacity at the FHLB of $1.3 billion, unchanged from the first quarter of 2023. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At June 30, 2023 the available borrowing capacity with the Federal Reserve Bank was $245.7 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at June 30, 2023, the Company maintained $137.7 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, 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 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", or "anticipate", the negative and other variations of these terms 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 and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in 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; our ability to attract and retain deposits and access other sources of liquidity; GDP growth; 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, such as state and local government mandates, SEC rule-making, the Dodd-Frank Act and Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; 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; cyber security 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; uncertainties arising from national and global events, including the war in Ukraine, as well as the potential impact of widespread protests, civil unrest, political uncertainty on the economy and the financial services industry, and pandemics or other public health crises, including the COVID-19 pandemic; and access to 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 06/30/2023 12/31/2022 (Audited) Cash and noninterest bearing balances due from banks $ 65,916 $ 18,572 Interest bearing balances due from banks 15,698 59,265 Cash and Cash Equivalents 81,614 77,837 Available-for-sale debt securities, at fair value (amortized cost of $1,688,051 at June 30, 2023 and $1,831,791 at December 31, 2022) 1,468,003 1,594,967 Held-to-maturity securities, at amortized cost (fair value of $262,444 at June 30, 2023 and $261,692 at December 31, 2022) 312,369 312,344 Equity securities, at fair value 778 777 Total loans and leases, net of unearned income and deferred costs and fees 5,352,365 5,268,911 Less: Allowance for credit losses 48,545 45,934 Net Loans and Leases 5,303,820 5,222,977 Federal Home Loan Bank and other stock 23,649 17,720 Bank premises and equipment, net 81,087 82,140 Corporate owned life insurance 86,709 85,556 Goodwill 92,602 92,602 Other intangible assets, net 2,513 2,708 Accrued interest and other assets 173,094 181,058 Total Assets $ 7,626,238 $ 7,670,686 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,659,220 3,820,739 Time 770,594 631,411 Noninterest bearing 2,024,837 2,150,145 Total Deposits 6,454,651 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 56,278 Other borrowings 387,100 291,300 Other liabilities 97,563 103,423 Total Liabilities $ 6,989,797 $ 7,053,296 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,441,413 at June 30, 2023; and 14,555,741 at December 31, 2022 1,444 1,456 Additional paid-in capital 298,133 302,763 Retained earnings 537,095 526,727 Accumulated other comprehensive loss (195,520 ) (208,689 ) Treasury stock, at cost – 124,265 shares at June 30, 2023, and 128,749 shares at December 31, 2022 (6,185 ) (6,279 ) Total Tompkins Financial Corporation Shareholders’ Equity 634,967 615,978 Noncontrolling interests 1,474 1,412 Total Equity $ 636,441 $ 617,390 Total Liabilities and Equity $ 7,626,238 $ 7,670,686 TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended 06/30/2023 06/30/2022 06/30/2023 06/30/2022 INTEREST AND DIVIDEND INCOME Loans $ 63,527 $ 52,505 $ 124,369 $ 103,636 Due from banks 183 64 322 105 Available-for-sale debt securities 6,618 7,063 13,361 13,833 Held-to-maturity securities 1,219 1,201 2,433 2,330 Federal Home Loan Bank and other stock 323 120 623 225 Total Interest and Dividend Income 71,870 $ 60,953 $ 141,108 $ 120,129 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 2,526 400 4,313 826 Other deposits 13,119 1,647 23,513 3,267 Federal funds purchased and securities sold under agreements to repurchase 15 15 29 31 Other borrowings 4,314 629 7,111 1,129 Total Interest Expense 19,974 2,691 34,966 5,253 Net Interest Income 51,896 58,262 106,142 114,876 Less: Provision for credit loss expense 2,253 856 1,428 336 Net Interest Income After Credit for Credit Loss Expense 49,643 57,406 104,714 114,540 NONINTEREST INCOME Insurance commissions and fees 8,672 8,429 18,181 17,746 Wealth management fees 4,678 4,596 9,187 9,513 Service charges on deposit accounts 1,640 1,756 3,386 3,535 Card services income 3,087 2,959 5,769 5,502 Other income 1,603 1,241 3,544 2,717 Net loss on securities transactions (7,065 ) (37 ) (7,052 ) (84 ) Total Noninterest Income 12,615 18,944 33,015 38,929 NONINTEREST EXPENSE Salaries and wages 25,337 24,396 49,849 47,668 Other employee benefits 6,647 6,341 13,388 12,138 Net occupancy expense of premises 3,327 3,131 6,626 6,672 Furniture and fixture expense 2,105 2,004 4,159 3,995 Amortization of intangible assets 84 219 167 437 Other operating expense 14,468 13,029 27,937 25,049 Total Noninterest Expenses 51,968 49,120 102,126 95,959 Income Before Income Tax Expense 10,290 27,230 35,603 57,510 Income Tax Expense 1,784 6,329 7,685 13,305 Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 8,506 20,901 27,918 44,205 Less: Net Income Attributable to Noncontrolling Interests 31 32 62 63 Net Income Attributable to Tompkins Financial Corporation $ 8,475 20,869 27,856 44,142 Basic Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.06 Diluted Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.05 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended June 30, 2023 June 30, 2022 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 $ 13,585 $ 183 5.40 % $ 88,094 $ 64 0.29 % Securities (1) U.S. Government securities 1,972,719 7,304 1.49 % 2,305,102 7,746 1.35 % State and municipal (2) 92,194 590 2.57 % 97,481 619 2.55 % Other securities (2) 3,288 56 6.86 % 3,337 28 3.40 % Total securities 2,068,201 7,950 1.54 % 2,405,920 8,393 1.40 % FHLBNY and FRB stock 23,211 323 5.59 % 12,234 120 3.92 % Total loans and leases, net of unearned income (2)(3) 5,304,717 63,709 4.82 % 5,115,340 52,733 4.14 % Total interest-earning assets 7,409,714 72,165 3.91 % 7,621,588 61,310 3.23 % Other assets 226,086 209,057 Total assets $ 7,635,800 $ 7,830,645 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,701,229 $ 10,590 1.15 % $ 4,073,279 $ 890 0.09 % Time deposits 745,970 5,055 2.72 % 603,791 1,157 0.77 % Total interest-bearing deposits 4,447,199 15,645 1.41 % 4,677,070 2,047 0.18 % Federal funds purchased & securities sold under agreements to repurchase 56,083 15 0.11 % 54,885 15 0.11 % Other borrowings 379,744 4,314 4.56 % 169,390 629 1.49 % Total interest-bearing liabilities 4,883,026 19,974 1.64 % 4,901,345 2,691 0.22 % Noninterest bearing deposits 2,004,560 2,189,132 Accrued expenses and other liabilities 97,660 100,813 Total liabilities 6,985,246 7,191,290 Tompkins Financial Corporation Shareholders’ equity 649,097 637,896 Noncontrolling interest 1,457 1,459 Total equity 650,554 639,355 Total liabilities and equity $ 7,635,800 $ 7,830,645 Interest rate spread 2.27 % 3.01 % Net interest income/margin on earning assets 52,191 2.83 % 58,619 3.09 % Tax Equivalent Adjustment (295 ) (357 ) Net interest income per consolidated financial statements $ 51,896 $ 58,262 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Year to Date Period Ended Year to Date Period Ended June 30, 2023 June 30, 2022 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 $ 13,161 $ 322 4.93 % $ 110,984 $ 105 0.19 % Securities (1) U.S. Government securities 2,002,846 14,728 1.48 % 2,299,389 15,108 1.32 % State and municipal (2) 92,695 1,188 2.58 % 99,602 1,267 2.57 % Other securities (2) 3,286 110 6.70 % 3,363 51 3.06 % Total securities 2,098,827 16,026 1.54 % 2,402,354 16,426 1.38 % FHLBNY and FRB stock 19,998 623 6.29 % 11,172 225 4.06 % Total loans and leases, net of unearned income (2)(3) 5,278,145 124,744 4.77 % 5,085,808 104,088 4.13 % Total interest-earning assets 7,410,131 141,715 3.86 % 7,610,318 120,844 3.20 % Other assets 224,671 259,809 Total assets $ 7,634,802 $ 7,870,127 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,767,032 $ 19,230 1.03 % $ 4,116,870 $ 1,638 0.08 % Time deposits 710,119 8,596 2.44 % 617,616 2,455 0.80 % Total interest-bearing deposits 4,477,151 27,826 1.25 % 4,734,486 4,093 0.17 % Federal funds purchased & securities sold under agreements to repurchase 56,799 29 0.10 % 59,536 31 0.11 % Other borrowings 325,052 7,111 4.41 % 147,466 1,129 1.54 % Total interest-bearing liabilities 4,859,002 34,966 1.45 % 4,941,488 5,253 0.21 % Noninterest bearing deposits 2,034,961 2,149,201 Accrued expenses and other liabilities 99,905 103,451 Total liabilities 6,993,868 7,194,140 Tompkins Financial Corporation Shareholders’ equity 639,494 674,545 Noncontrolling interest 1,440 1,442 Total equity 640,934 675,987 Total liabilities and equity $ 7,634,802 $ 7,870,127 Interest rate spread 2.41 % 2.99 % Net interest income/margin on earning assets 106,749 2.90 % 115,591 3.06 % Tax Equivalent Adjustment (607 ) (715 ) Net interest income per consolidated financial statements $ 106,142 $ 114,876 Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Securities $ 1,781,150 $ 1,899,001 $ 1,908,088 $ 2,054,036 $ 2,204,851 $ 1,908,088 Total Loans 5,352,365 5,273,671 5,268,911 5,208,436 5,162,503 5,268,911 Allowance for credit losses 48,545 46,099 45,934 44,772 43,793 45,934 Total assets 7,626,238 7,644,371 7,670,686 7,779,941 7,842,461 7,670,686 Total deposits 6,454,651 6,509,009 6,602,295 6,936,726 6,769,521 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 63,491 56,278 55,340 50,075 56,278 Other borrowings 387,100 327,000 291,300 101,000 295,600 291,300 Total common equity 634,967 648,322 615,978 571,453 622,843 615,978 Total equity 636,441 649,765 617,390 572,959 624,318 617,390 Average Balance Sheet Average earning assets $ 7,409,714 $ 7,410,553 $ 7,568,656 $ 7,639,123 $ 7,621,588 $ 7,607,078 Average assets 7,635,800 7,633,793 7,721,335 7,853,847 7,830,645 7,828,520 Average interest-bearing liabilities 4,883,026 4,834,712 4,828,561 4,861,857 4,901,345 4,892,952 Average equity 650,554 631,208 580,720 635,324 639,354 641,726 Share data Weighted average shares outstanding (basic) 14,314,133 14,326,595 14,308,323 14,289,022 14,317,415 14,328,280 Weighted average shares outstanding (diluted) 14,346,787 14,389,673 14,385,884 14,367,149 14,387,601 14,404,294 Period-end shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Common equity book value per share $ 44.08 $ 44.65 $ 42.42 $ 39.45 $ 42.94 $ 42.42 Tangible book value per share (Non-GAAP)** $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 **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 $ 51,896 $ 54,246 $ 57,294 $ 58,111 $ 58,262 $ 230,281 (Credit) provision for credit loss expense (5) 2,253 (825 ) 1,397 1,056 856 2,789 Noninterest income 12,615 20,400 18,351 20,692 18,944 77,972 Noninterest expense (5) 51,968 50,158 50,190 49,602 49,120 195,751 Income tax expense 1,784 5,901 4,478 6,774 6,329 24,557 Net income attributable to Tompkins Financial Corporation 8,475 19,381 19,548 21,340 20,869 85,030 Noncontrolling interests 31 31 32 31 32 126 Basic earnings per share (4) 0.59 1.35 1.36 1.49 1.45 5.92 Diluted earnings per share (4) 0.59 1.35 1.36 1.48 1.45 5.89 Nonperforming Assets Nonaccrual loans and leases $ 31,333 $ 28,424 $ 28,289 $ 30,013 $ 24,665 $ 28,289 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Performing troubled debt restructuring* 0 0 4,530 4,730 4,872 4,530 Total nonperforming loans and leases 31,367 28,437 32,844 34,904 29,599 32,844 OREO 36 36 152 335 122 152 Total nonperforming assets $ 31,403 $ 28,473 $ 32,996 $ 35,239 $ 29,721 $ 32,996 *No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023. Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Loans and leases 30-89 days past due and accruing $ 20,255 $ 5,894 $ 3,172 $ 3,160 $ 9,837 $ 3,172 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Total loans and leases past due and accruing 20,289 5,907 3,197 3,321 9,899 3,197 Allowance for Credit Losses Balance at beginning of period $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 42,126 $ 42,843 Impact of adopting ASC 326 0 64 0 0 0 0 Provision (credit) for credit losses 2,419 (1,180 ) 1,352 1,101 780 $ 2,499 Net loan and lease (recoveries) charge-offs (27 ) (1,281 ) 190 122 (887 ) $ (592 ) Allowance for credit losses at end of period $ 48,545 $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 45,934 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,720 $ 2,506 (Credit) provision for credit losses (166 ) 355 45 (45 ) 76 $ 290 Allowance for credit losses at end of period $ 2,985 $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,796 Loan Classification - Total Portfolio Special Mention $ 56,305 $ 39,255 $ 49,752 $ 66,730 $ 72,270 $ 49,752 Substandard 61,820 46,315 48,537 40,007 42,756 48,537 Ratio Analysis Credit Quality Nonperforming loans and leases/total loans and leases 0.59 % 0.54 % 0.62 % 0.67 % 0.57 % 0.62 % Nonperforming assets/total assets 0.41 % 0.37 % 0.43 % 0.45 % 0.38 % 0.43 % Allowance for credit losses/total loans and leases 0.91 % 0.87 % 0.87 % 0.86 % 0.85 % 0.87 % Allowance/nonperforming loans and leases 154.76 % 162.11 % 139.86 % 128.27 % 147.95 % 139.85 % Net loan and lease losses annualized/total average loans and leases 0.00 % (0.10 )% 0.01 % 0.01 % (0.07 )% (0.01 )% Capital Adequacy Tier 1 Capital (to average assets) 9.57 % 9.63 % 9.34 % 9.14 % 9.02 % 9.34 % Total Capital (to risk-weighted assets) 14.48 % 14.62 % 14.42 % 14.26 % 14.07 % 14.42 % Profitability (period-end) Return on average assets * 0.45 % 1.03 % 1.00 % 1.08 % 1.07 % 1.09 % Return on average equity * 5.22 % 12.45 % 13.36 % 13.33 % 13.09 % 13.25 % Net interest margin (TE) * 2.83 % 2.99 % 3.02 % 3.04 % 3.09 % 3.05 % * 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 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 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 Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Total common equity $ 634,967 $ 648,322 $ 615,978 $ 571,453 $ 622,843 $ 615,978 Less: Goodwill and intangibles 94,169 94,253 94,336 94,554 94,617 94,336 Tangible common equity (Non-GAAP) 540,798 554,069 521,642 476,899 528,226 521,642 Ending shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Tangible book value per share (Non-GAAP) $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 (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 2023 and 2022 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, 2022. (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230721547318/en/Contacts Stephen S. Romaine, President & CEO Francis M. Fetsko, Executive VP, CFO & COO Tompkins Financial Corporation (888) 503-5753 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Tompkins Financial Corporation Reports Second Quarter Earnings By: Tompkins Financial Corporation via Business Wire July 21, 2023 at 09:00 AM EDT Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $0.59 for the second quarter of 2023, down 56.3% from the immediate prior quarter, and down 59.3% from diluted earnings per share of $1.45 reported in the second quarter of 2022. Net income for the second quarter of 2023 was $8.5 million, down $12.4 million, or 59.4%, when compared to the $20.9 million reported for the same period in 2022. Results for the current quarter were negatively affected by the sale of $80.9 million of available-for-sale securities. Though the sale resulted in a $7.1 million pre-tax loss on securities transactions during the quarter (or $0.37 per share), the transaction is expected to have a positive impact on future earnings. The available-for-sale securities sold in the second quarter of 2023 had an average yield of 0.48%, with a remaining average life of 2.3 years. Approximately $15.0 million of the proceeds from sale were reinvested in available-for-sale securities with an average yield of approximately 4.30%, while the remaining proceeds were used to pay down approximately $65.0 million of overnight borrowings with the Federal Home Loan Bank ("FHLB"). For the year-to-date period ended June 30, 2023, diluted earnings per share were $1.94, down 36.4% from $3.05 for the same year-to-date period in 2022. Year-to-date net income was $27.9 million for the six month period ended June 30, 2023, down $16.3 million, or 36.9%, when compared to $44.1 million for the same period in 2022. Year-to-date results were also negatively impacted by the loss on securities transactions described above. Tompkins President and CEO, Stephen Romaine, commented, "The economic environment remains challenging for the banking industry. Despite these challenges, which continue to negatively affect our net interest income, we saw some positive trends during the second quarter and first half of 2023. These included annualized loan growth of 6.0% from the immediate prior quarter, stable noninterest bearing deposit balances when compared to the first quarter this year, and year-to-date annualized fee income growth of 1.3% over that same period in 2022." SELECTED HIGHLIGHTS FOR THE PERIOD: Total loans at June 30, 2023 were $5.4 billion, up 6.0% annualized compared to the immediate prior quarter, and up $189.9 million, or 3.7%, from June 30, 2022. Total deposits at June 30, 2023 were $6.5 billion, down $54.4 million, or 0.84%, from March 31, 2023 and down $314.9 million, or 4.65%, from June 30, 2022. The year-over-year pace of decline of total deposits slowed in the second quarter, when compared to the year-over-year decline of 7.2% over the twelve month period ended March 31, 2023. Loan to deposit ratio remains stable at 83% as compared to 81% for the prior quarter Regulatory Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.63% at March 31, 2023 and 9.02% at June 30, 2022. Total nonperforming assets at June 30, 2023 represented 0.41% of total assets, an increase of 10.8% from the immediate prior quarter. NET INTEREST INCOME Net interest income was $51.9 million for the second quarter of 2023, down from $54.2 million for the first quarter of 2023 and $58.3 million for the second quarter of 2022. Net interest margin was 2.83% for the second quarter of 2023, compared to 2.99% reported for the first quarter of 2023 and 3.09% reported for the second quarter of 2022. The decrease in net interest income and net interest margin from the first quarter of 2023 and the second quarter of 2022 was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment. For the year-to-date period ended June 30, 2023, net interest income was $106.1 million, down $8.7 million or 7.6% when compared to the same period in 2022. Average loans for the quarter ended June 30, 2023 were up $53.4 million, or 1.0%, from the first quarter of 2023, and $189.4 million, or 3.7%, compared to the same period in 2022. The increase in average loans was mainly in the commercial real estate portfolio compared to the first quarter of 2023, and the quarter ended June 30, 2022. The average yield on interest-earning assets for the quarter ended June 30, 2023 was 3.91%, up 10 basis points compared to the quarter ended March 31, 2023, and up 68 basis points compared to the quarter ended June 30, 2022. Average total deposits for the second quarter of 2023 were down $121.4 million, or 1.8%, compared to the first quarter of 2023, and down $414.4 million, or 6.0%, compared to the same period in 2022. The decrease was largely driven by a decline in stimulus funding and a tightening monetary policy that has led to a declining trend in bank deposits on a national level, as reported by the Federal Reserve. The cost of interest-bearing deposits increased to 1.41% for the second quarter of 2023, compared to 1.10% for the first quarter of 2023, and 0.18% for the second quarter of 2022. The cost of interest-bearing deposits for the second quarter of 2023 increased 31 basis points from March 31, 2023, which is down from the 41 basis point increase in the cost of interest-bearing deposits for the first quarter of 2023, compared to the fourth quarter of 2022. Noninterest bearing deposits to total deposits at June 30, 2023, were 31.4% compared to 30.9% at March 31, 2023. The average cost of interest-bearing liabilities for the second quarter of 2023 of 1.64%, represents an increase of 38 basis points over the first quarter of 2023, and an increase of 142 basis points over the same period in 2022. NONINTEREST INCOME Noninterest income of $12.6 million for the second quarter of 2023 was down $6.3 million, or 33.4%, compared to the second quarter of 2022. Year-to-date noninterest income of $33.0 million was down $5.9 million, or 15.2%, compared to the same six month period in 2022. Noninterest income represented 19.6% of total revenue for the quarter ended June 30, 2023, compared to 24.5% for the quarter ended June 30, 2022. The decrease in noninterest income in the second quarter of 2023 was largely due to the sale of available-for-sale securities, which resulted in the recognition of a pre-tax loss of $7.1 million. Partially offsetting the decreases in noninterest income in the second quarter of 2023 compared to the prior year quarter were increases in fee income of $337,000 and an increase in income on bank-owned life insurance of $383,000. NONINTEREST EXPENSE Noninterest expense was $52.0 million for the second quarter of 2023, which was up $2.8 million, or 5.8%, over the second quarter of 2022. For the year-to-date period, noninterest expense of $102.1 million was up $6.2 million, or 6.4%, from the same period in 2022. The increase in noninterest expense in the second quarter of 2023 over the same quarter last year was mainly in higher personnel-related expenses, up $1.2 million. The increase in personnel-related expenses was mainly in salaries and wages and reflects annual merit adjustments. Significant components that increased in other expenses were professional fees which were up $405,000, other losses which were up $517,000, and marketing which was up $232,000, in each case as compared to the second quarter of 2022. INCOME TAX EXPENSE The Company's effective tax rate was 17.3% for the second quarter of 2023, compared to 23.2% for the same period in 2022. The effective tax rate for the six months ended June 30, 2023 was 21.6%, compared to 23.1% reported for the same period in 2022. The decrease in the effective tax rate for the three and six months ended June 30, 2023, compared to the same periods in 2022 is largely due to the anticipated retention of certain New York State tax benefits. The Company's banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim the benefit is that the consolidated company has qualified average assets of no more than $8.0 billion for the taxable year. Based on current estimates of average assets during 2023, the Company expects to retain the benefits in 2023. ASSET QUALITY The allowance for credit losses represented 0.91% of total loans and leases at June 30, 2023, up from 0.87% at March 31, 2023, and up from 0.85% at June 30, 2022. The ratio of the allowance to total nonperforming loans and leases was 154.76% for the second quarter of 2023, compared to 162.11% at March 31, 2023 and 147.95% at June 30, 2022. Provision for credit losses for the second quarter of 2023 was $2.3 million compared to $856,000 for the same period in 2022. Provision for credit losses for the six months ended June 30, 2023 was $1.4 million, compared to $336,000 for the six months ended June 30, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by weaker economic forecasts, loan growth, and changes in asset quality. Net recoveries for the quarter ended June 30, 2023 were $27,000 compared to net recoveries of $887,000 reported for the same period in 2022. Nonperforming assets represented 0.41% of total assets at June 30, 2023, down from 0.43% at December 31, 2022 and up from the 0.38% reported at June 30, 2022. At June 30, 2023, nonperforming loans and leases totaled $31.4 million, compared to $32.8 million at December 31, 2022 and $29.6 million at June 30, 2022. The increase in loans past due 30-89 days at quarter end June 30, 2023 was mainly due to the inclusion of a $15.3 million commercial real estate loan. Special Mention and Substandard loans and leases totaled $118.1 million at June 30, 2023, reflecting an increase from the $98.3 million reported at December 31, 2022, and $115.0 million at June 30, 2022. The increase over year-end in Special Mention and Substandard was mainly a result of the downgrade of one commercial real estate loan added to Special Mention during the second quarter of 2023 and the downgrade of one commercial real estate loan previously reported as Special Mention. CAPITAL POSITION Capital ratios at June 30, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.48% at June 30, 2023, compared to 14.42% at December 31, 2022 and 14.07% at June 30, 2022. The ratio of Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.34% at December 31, 2022 and 9.02% at June 30, 2022. During the second quarter of 2023, the Company repurchased 108,219 common shares at an aggregate cost of $6.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021. The Company announced today that its Board of Directors has authorized a new Stock Repurchase Program to repurchase up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, from time to time, over the next 24 months. LIQUIDITY POSITION The Company's liquidity position remained stable from the first quarter of 2023. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and FHLB advances. The Company maintains ready access liquidity of $1.7 billion, or 22.3% of total assets at June 30, 2023. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At June 30, 2023 the Company had an available borrowing capacity at the FHLB of $1.3 billion, unchanged from the first quarter of 2023. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At June 30, 2023 the available borrowing capacity with the Federal Reserve Bank was $245.7 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at June 30, 2023, the Company maintained $137.7 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, 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 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", or "anticipate", the negative and other variations of these terms 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 and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in 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; our ability to attract and retain deposits and access other sources of liquidity; GDP growth; 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, such as state and local government mandates, SEC rule-making, the Dodd-Frank Act and Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; 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; cyber security 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; uncertainties arising from national and global events, including the war in Ukraine, as well as the potential impact of widespread protests, civil unrest, political uncertainty on the economy and the financial services industry, and pandemics or other public health crises, including the COVID-19 pandemic; and access to 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 06/30/2023 12/31/2022 (Audited) Cash and noninterest bearing balances due from banks $ 65,916 $ 18,572 Interest bearing balances due from banks 15,698 59,265 Cash and Cash Equivalents 81,614 77,837 Available-for-sale debt securities, at fair value (amortized cost of $1,688,051 at June 30, 2023 and $1,831,791 at December 31, 2022) 1,468,003 1,594,967 Held-to-maturity securities, at amortized cost (fair value of $262,444 at June 30, 2023 and $261,692 at December 31, 2022) 312,369 312,344 Equity securities, at fair value 778 777 Total loans and leases, net of unearned income and deferred costs and fees 5,352,365 5,268,911 Less: Allowance for credit losses 48,545 45,934 Net Loans and Leases 5,303,820 5,222,977 Federal Home Loan Bank and other stock 23,649 17,720 Bank premises and equipment, net 81,087 82,140 Corporate owned life insurance 86,709 85,556 Goodwill 92,602 92,602 Other intangible assets, net 2,513 2,708 Accrued interest and other assets 173,094 181,058 Total Assets $ 7,626,238 $ 7,670,686 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,659,220 3,820,739 Time 770,594 631,411 Noninterest bearing 2,024,837 2,150,145 Total Deposits 6,454,651 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 56,278 Other borrowings 387,100 291,300 Other liabilities 97,563 103,423 Total Liabilities $ 6,989,797 $ 7,053,296 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,441,413 at June 30, 2023; and 14,555,741 at December 31, 2022 1,444 1,456 Additional paid-in capital 298,133 302,763 Retained earnings 537,095 526,727 Accumulated other comprehensive loss (195,520 ) (208,689 ) Treasury stock, at cost – 124,265 shares at June 30, 2023, and 128,749 shares at December 31, 2022 (6,185 ) (6,279 ) Total Tompkins Financial Corporation Shareholders’ Equity 634,967 615,978 Noncontrolling interests 1,474 1,412 Total Equity $ 636,441 $ 617,390 Total Liabilities and Equity $ 7,626,238 $ 7,670,686 TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended 06/30/2023 06/30/2022 06/30/2023 06/30/2022 INTEREST AND DIVIDEND INCOME Loans $ 63,527 $ 52,505 $ 124,369 $ 103,636 Due from banks 183 64 322 105 Available-for-sale debt securities 6,618 7,063 13,361 13,833 Held-to-maturity securities 1,219 1,201 2,433 2,330 Federal Home Loan Bank and other stock 323 120 623 225 Total Interest and Dividend Income 71,870 $ 60,953 $ 141,108 $ 120,129 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 2,526 400 4,313 826 Other deposits 13,119 1,647 23,513 3,267 Federal funds purchased and securities sold under agreements to repurchase 15 15 29 31 Other borrowings 4,314 629 7,111 1,129 Total Interest Expense 19,974 2,691 34,966 5,253 Net Interest Income 51,896 58,262 106,142 114,876 Less: Provision for credit loss expense 2,253 856 1,428 336 Net Interest Income After Credit for Credit Loss Expense 49,643 57,406 104,714 114,540 NONINTEREST INCOME Insurance commissions and fees 8,672 8,429 18,181 17,746 Wealth management fees 4,678 4,596 9,187 9,513 Service charges on deposit accounts 1,640 1,756 3,386 3,535 Card services income 3,087 2,959 5,769 5,502 Other income 1,603 1,241 3,544 2,717 Net loss on securities transactions (7,065 ) (37 ) (7,052 ) (84 ) Total Noninterest Income 12,615 18,944 33,015 38,929 NONINTEREST EXPENSE Salaries and wages 25,337 24,396 49,849 47,668 Other employee benefits 6,647 6,341 13,388 12,138 Net occupancy expense of premises 3,327 3,131 6,626 6,672 Furniture and fixture expense 2,105 2,004 4,159 3,995 Amortization of intangible assets 84 219 167 437 Other operating expense 14,468 13,029 27,937 25,049 Total Noninterest Expenses 51,968 49,120 102,126 95,959 Income Before Income Tax Expense 10,290 27,230 35,603 57,510 Income Tax Expense 1,784 6,329 7,685 13,305 Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 8,506 20,901 27,918 44,205 Less: Net Income Attributable to Noncontrolling Interests 31 32 62 63 Net Income Attributable to Tompkins Financial Corporation $ 8,475 20,869 27,856 44,142 Basic Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.06 Diluted Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.05 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended June 30, 2023 June 30, 2022 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 $ 13,585 $ 183 5.40 % $ 88,094 $ 64 0.29 % Securities (1) U.S. Government securities 1,972,719 7,304 1.49 % 2,305,102 7,746 1.35 % State and municipal (2) 92,194 590 2.57 % 97,481 619 2.55 % Other securities (2) 3,288 56 6.86 % 3,337 28 3.40 % Total securities 2,068,201 7,950 1.54 % 2,405,920 8,393 1.40 % FHLBNY and FRB stock 23,211 323 5.59 % 12,234 120 3.92 % Total loans and leases, net of unearned income (2)(3) 5,304,717 63,709 4.82 % 5,115,340 52,733 4.14 % Total interest-earning assets 7,409,714 72,165 3.91 % 7,621,588 61,310 3.23 % Other assets 226,086 209,057 Total assets $ 7,635,800 $ 7,830,645 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,701,229 $ 10,590 1.15 % $ 4,073,279 $ 890 0.09 % Time deposits 745,970 5,055 2.72 % 603,791 1,157 0.77 % Total interest-bearing deposits 4,447,199 15,645 1.41 % 4,677,070 2,047 0.18 % Federal funds purchased & securities sold under agreements to repurchase 56,083 15 0.11 % 54,885 15 0.11 % Other borrowings 379,744 4,314 4.56 % 169,390 629 1.49 % Total interest-bearing liabilities 4,883,026 19,974 1.64 % 4,901,345 2,691 0.22 % Noninterest bearing deposits 2,004,560 2,189,132 Accrued expenses and other liabilities 97,660 100,813 Total liabilities 6,985,246 7,191,290 Tompkins Financial Corporation Shareholders’ equity 649,097 637,896 Noncontrolling interest 1,457 1,459 Total equity 650,554 639,355 Total liabilities and equity $ 7,635,800 $ 7,830,645 Interest rate spread 2.27 % 3.01 % Net interest income/margin on earning assets 52,191 2.83 % 58,619 3.09 % Tax Equivalent Adjustment (295 ) (357 ) Net interest income per consolidated financial statements $ 51,896 $ 58,262 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Year to Date Period Ended Year to Date Period Ended June 30, 2023 June 30, 2022 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 $ 13,161 $ 322 4.93 % $ 110,984 $ 105 0.19 % Securities (1) U.S. Government securities 2,002,846 14,728 1.48 % 2,299,389 15,108 1.32 % State and municipal (2) 92,695 1,188 2.58 % 99,602 1,267 2.57 % Other securities (2) 3,286 110 6.70 % 3,363 51 3.06 % Total securities 2,098,827 16,026 1.54 % 2,402,354 16,426 1.38 % FHLBNY and FRB stock 19,998 623 6.29 % 11,172 225 4.06 % Total loans and leases, net of unearned income (2)(3) 5,278,145 124,744 4.77 % 5,085,808 104,088 4.13 % Total interest-earning assets 7,410,131 141,715 3.86 % 7,610,318 120,844 3.20 % Other assets 224,671 259,809 Total assets $ 7,634,802 $ 7,870,127 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,767,032 $ 19,230 1.03 % $ 4,116,870 $ 1,638 0.08 % Time deposits 710,119 8,596 2.44 % 617,616 2,455 0.80 % Total interest-bearing deposits 4,477,151 27,826 1.25 % 4,734,486 4,093 0.17 % Federal funds purchased & securities sold under agreements to repurchase 56,799 29 0.10 % 59,536 31 0.11 % Other borrowings 325,052 7,111 4.41 % 147,466 1,129 1.54 % Total interest-bearing liabilities 4,859,002 34,966 1.45 % 4,941,488 5,253 0.21 % Noninterest bearing deposits 2,034,961 2,149,201 Accrued expenses and other liabilities 99,905 103,451 Total liabilities 6,993,868 7,194,140 Tompkins Financial Corporation Shareholders’ equity 639,494 674,545 Noncontrolling interest 1,440 1,442 Total equity 640,934 675,987 Total liabilities and equity $ 7,634,802 $ 7,870,127 Interest rate spread 2.41 % 2.99 % Net interest income/margin on earning assets 106,749 2.90 % 115,591 3.06 % Tax Equivalent Adjustment (607 ) (715 ) Net interest income per consolidated financial statements $ 106,142 $ 114,876 Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Securities $ 1,781,150 $ 1,899,001 $ 1,908,088 $ 2,054,036 $ 2,204,851 $ 1,908,088 Total Loans 5,352,365 5,273,671 5,268,911 5,208,436 5,162,503 5,268,911 Allowance for credit losses 48,545 46,099 45,934 44,772 43,793 45,934 Total assets 7,626,238 7,644,371 7,670,686 7,779,941 7,842,461 7,670,686 Total deposits 6,454,651 6,509,009 6,602,295 6,936,726 6,769,521 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 63,491 56,278 55,340 50,075 56,278 Other borrowings 387,100 327,000 291,300 101,000 295,600 291,300 Total common equity 634,967 648,322 615,978 571,453 622,843 615,978 Total equity 636,441 649,765 617,390 572,959 624,318 617,390 Average Balance Sheet Average earning assets $ 7,409,714 $ 7,410,553 $ 7,568,656 $ 7,639,123 $ 7,621,588 $ 7,607,078 Average assets 7,635,800 7,633,793 7,721,335 7,853,847 7,830,645 7,828,520 Average interest-bearing liabilities 4,883,026 4,834,712 4,828,561 4,861,857 4,901,345 4,892,952 Average equity 650,554 631,208 580,720 635,324 639,354 641,726 Share data Weighted average shares outstanding (basic) 14,314,133 14,326,595 14,308,323 14,289,022 14,317,415 14,328,280 Weighted average shares outstanding (diluted) 14,346,787 14,389,673 14,385,884 14,367,149 14,387,601 14,404,294 Period-end shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Common equity book value per share $ 44.08 $ 44.65 $ 42.42 $ 39.45 $ 42.94 $ 42.42 Tangible book value per share (Non-GAAP)** $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 **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 $ 51,896 $ 54,246 $ 57,294 $ 58,111 $ 58,262 $ 230,281 (Credit) provision for credit loss expense (5) 2,253 (825 ) 1,397 1,056 856 2,789 Noninterest income 12,615 20,400 18,351 20,692 18,944 77,972 Noninterest expense (5) 51,968 50,158 50,190 49,602 49,120 195,751 Income tax expense 1,784 5,901 4,478 6,774 6,329 24,557 Net income attributable to Tompkins Financial Corporation 8,475 19,381 19,548 21,340 20,869 85,030 Noncontrolling interests 31 31 32 31 32 126 Basic earnings per share (4) 0.59 1.35 1.36 1.49 1.45 5.92 Diluted earnings per share (4) 0.59 1.35 1.36 1.48 1.45 5.89 Nonperforming Assets Nonaccrual loans and leases $ 31,333 $ 28,424 $ 28,289 $ 30,013 $ 24,665 $ 28,289 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Performing troubled debt restructuring* 0 0 4,530 4,730 4,872 4,530 Total nonperforming loans and leases 31,367 28,437 32,844 34,904 29,599 32,844 OREO 36 36 152 335 122 152 Total nonperforming assets $ 31,403 $ 28,473 $ 32,996 $ 35,239 $ 29,721 $ 32,996 *No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023. Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Loans and leases 30-89 days past due and accruing $ 20,255 $ 5,894 $ 3,172 $ 3,160 $ 9,837 $ 3,172 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Total loans and leases past due and accruing 20,289 5,907 3,197 3,321 9,899 3,197 Allowance for Credit Losses Balance at beginning of period $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 42,126 $ 42,843 Impact of adopting ASC 326 0 64 0 0 0 0 Provision (credit) for credit losses 2,419 (1,180 ) 1,352 1,101 780 $ 2,499 Net loan and lease (recoveries) charge-offs (27 ) (1,281 ) 190 122 (887 ) $ (592 ) Allowance for credit losses at end of period $ 48,545 $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 45,934 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,720 $ 2,506 (Credit) provision for credit losses (166 ) 355 45 (45 ) 76 $ 290 Allowance for credit losses at end of period $ 2,985 $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,796 Loan Classification - Total Portfolio Special Mention $ 56,305 $ 39,255 $ 49,752 $ 66,730 $ 72,270 $ 49,752 Substandard 61,820 46,315 48,537 40,007 42,756 48,537 Ratio Analysis Credit Quality Nonperforming loans and leases/total loans and leases 0.59 % 0.54 % 0.62 % 0.67 % 0.57 % 0.62 % Nonperforming assets/total assets 0.41 % 0.37 % 0.43 % 0.45 % 0.38 % 0.43 % Allowance for credit losses/total loans and leases 0.91 % 0.87 % 0.87 % 0.86 % 0.85 % 0.87 % Allowance/nonperforming loans and leases 154.76 % 162.11 % 139.86 % 128.27 % 147.95 % 139.85 % Net loan and lease losses annualized/total average loans and leases 0.00 % (0.10 )% 0.01 % 0.01 % (0.07 )% (0.01 )% Capital Adequacy Tier 1 Capital (to average assets) 9.57 % 9.63 % 9.34 % 9.14 % 9.02 % 9.34 % Total Capital (to risk-weighted assets) 14.48 % 14.62 % 14.42 % 14.26 % 14.07 % 14.42 % Profitability (period-end) Return on average assets * 0.45 % 1.03 % 1.00 % 1.08 % 1.07 % 1.09 % Return on average equity * 5.22 % 12.45 % 13.36 % 13.33 % 13.09 % 13.25 % Net interest margin (TE) * 2.83 % 2.99 % 3.02 % 3.04 % 3.09 % 3.05 % * 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 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 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 Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Total common equity $ 634,967 $ 648,322 $ 615,978 $ 571,453 $ 622,843 $ 615,978 Less: Goodwill and intangibles 94,169 94,253 94,336 94,554 94,617 94,336 Tangible common equity (Non-GAAP) 540,798 554,069 521,642 476,899 528,226 521,642 Ending shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Tangible book value per share (Non-GAAP) $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 (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 2023 and 2022 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, 2022. (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230721547318/en/Contacts Stephen S. Romaine, President & CEO Francis M. Fetsko, Executive VP, CFO & COO Tompkins Financial Corporation (888) 503-5753
Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $0.59 for the second quarter of 2023, down 56.3% from the immediate prior quarter, and down 59.3% from diluted earnings per share of $1.45 reported in the second quarter of 2022. Net income for the second quarter of 2023 was $8.5 million, down $12.4 million, or 59.4%, when compared to the $20.9 million reported for the same period in 2022. Results for the current quarter were negatively affected by the sale of $80.9 million of available-for-sale securities. Though the sale resulted in a $7.1 million pre-tax loss on securities transactions during the quarter (or $0.37 per share), the transaction is expected to have a positive impact on future earnings. The available-for-sale securities sold in the second quarter of 2023 had an average yield of 0.48%, with a remaining average life of 2.3 years. Approximately $15.0 million of the proceeds from sale were reinvested in available-for-sale securities with an average yield of approximately 4.30%, while the remaining proceeds were used to pay down approximately $65.0 million of overnight borrowings with the Federal Home Loan Bank ("FHLB"). For the year-to-date period ended June 30, 2023, diluted earnings per share were $1.94, down 36.4% from $3.05 for the same year-to-date period in 2022. Year-to-date net income was $27.9 million for the six month period ended June 30, 2023, down $16.3 million, or 36.9%, when compared to $44.1 million for the same period in 2022. Year-to-date results were also negatively impacted by the loss on securities transactions described above. Tompkins President and CEO, Stephen Romaine, commented, "The economic environment remains challenging for the banking industry. Despite these challenges, which continue to negatively affect our net interest income, we saw some positive trends during the second quarter and first half of 2023. These included annualized loan growth of 6.0% from the immediate prior quarter, stable noninterest bearing deposit balances when compared to the first quarter this year, and year-to-date annualized fee income growth of 1.3% over that same period in 2022." SELECTED HIGHLIGHTS FOR THE PERIOD: Total loans at June 30, 2023 were $5.4 billion, up 6.0% annualized compared to the immediate prior quarter, and up $189.9 million, or 3.7%, from June 30, 2022. Total deposits at June 30, 2023 were $6.5 billion, down $54.4 million, or 0.84%, from March 31, 2023 and down $314.9 million, or 4.65%, from June 30, 2022. The year-over-year pace of decline of total deposits slowed in the second quarter, when compared to the year-over-year decline of 7.2% over the twelve month period ended March 31, 2023. Loan to deposit ratio remains stable at 83% as compared to 81% for the prior quarter Regulatory Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.63% at March 31, 2023 and 9.02% at June 30, 2022. Total nonperforming assets at June 30, 2023 represented 0.41% of total assets, an increase of 10.8% from the immediate prior quarter. NET INTEREST INCOME Net interest income was $51.9 million for the second quarter of 2023, down from $54.2 million for the first quarter of 2023 and $58.3 million for the second quarter of 2022. Net interest margin was 2.83% for the second quarter of 2023, compared to 2.99% reported for the first quarter of 2023 and 3.09% reported for the second quarter of 2022. The decrease in net interest income and net interest margin from the first quarter of 2023 and the second quarter of 2022 was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment. For the year-to-date period ended June 30, 2023, net interest income was $106.1 million, down $8.7 million or 7.6% when compared to the same period in 2022. Average loans for the quarter ended June 30, 2023 were up $53.4 million, or 1.0%, from the first quarter of 2023, and $189.4 million, or 3.7%, compared to the same period in 2022. The increase in average loans was mainly in the commercial real estate portfolio compared to the first quarter of 2023, and the quarter ended June 30, 2022. The average yield on interest-earning assets for the quarter ended June 30, 2023 was 3.91%, up 10 basis points compared to the quarter ended March 31, 2023, and up 68 basis points compared to the quarter ended June 30, 2022. Average total deposits for the second quarter of 2023 were down $121.4 million, or 1.8%, compared to the first quarter of 2023, and down $414.4 million, or 6.0%, compared to the same period in 2022. The decrease was largely driven by a decline in stimulus funding and a tightening monetary policy that has led to a declining trend in bank deposits on a national level, as reported by the Federal Reserve. The cost of interest-bearing deposits increased to 1.41% for the second quarter of 2023, compared to 1.10% for the first quarter of 2023, and 0.18% for the second quarter of 2022. The cost of interest-bearing deposits for the second quarter of 2023 increased 31 basis points from March 31, 2023, which is down from the 41 basis point increase in the cost of interest-bearing deposits for the first quarter of 2023, compared to the fourth quarter of 2022. Noninterest bearing deposits to total deposits at June 30, 2023, were 31.4% compared to 30.9% at March 31, 2023. The average cost of interest-bearing liabilities for the second quarter of 2023 of 1.64%, represents an increase of 38 basis points over the first quarter of 2023, and an increase of 142 basis points over the same period in 2022. NONINTEREST INCOME Noninterest income of $12.6 million for the second quarter of 2023 was down $6.3 million, or 33.4%, compared to the second quarter of 2022. Year-to-date noninterest income of $33.0 million was down $5.9 million, or 15.2%, compared to the same six month period in 2022. Noninterest income represented 19.6% of total revenue for the quarter ended June 30, 2023, compared to 24.5% for the quarter ended June 30, 2022. The decrease in noninterest income in the second quarter of 2023 was largely due to the sale of available-for-sale securities, which resulted in the recognition of a pre-tax loss of $7.1 million. Partially offsetting the decreases in noninterest income in the second quarter of 2023 compared to the prior year quarter were increases in fee income of $337,000 and an increase in income on bank-owned life insurance of $383,000. NONINTEREST EXPENSE Noninterest expense was $52.0 million for the second quarter of 2023, which was up $2.8 million, or 5.8%, over the second quarter of 2022. For the year-to-date period, noninterest expense of $102.1 million was up $6.2 million, or 6.4%, from the same period in 2022. The increase in noninterest expense in the second quarter of 2023 over the same quarter last year was mainly in higher personnel-related expenses, up $1.2 million. The increase in personnel-related expenses was mainly in salaries and wages and reflects annual merit adjustments. Significant components that increased in other expenses were professional fees which were up $405,000, other losses which were up $517,000, and marketing which was up $232,000, in each case as compared to the second quarter of 2022. INCOME TAX EXPENSE The Company's effective tax rate was 17.3% for the second quarter of 2023, compared to 23.2% for the same period in 2022. The effective tax rate for the six months ended June 30, 2023 was 21.6%, compared to 23.1% reported for the same period in 2022. The decrease in the effective tax rate for the three and six months ended June 30, 2023, compared to the same periods in 2022 is largely due to the anticipated retention of certain New York State tax benefits. The Company's banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim the benefit is that the consolidated company has qualified average assets of no more than $8.0 billion for the taxable year. Based on current estimates of average assets during 2023, the Company expects to retain the benefits in 2023. ASSET QUALITY The allowance for credit losses represented 0.91% of total loans and leases at June 30, 2023, up from 0.87% at March 31, 2023, and up from 0.85% at June 30, 2022. The ratio of the allowance to total nonperforming loans and leases was 154.76% for the second quarter of 2023, compared to 162.11% at March 31, 2023 and 147.95% at June 30, 2022. Provision for credit losses for the second quarter of 2023 was $2.3 million compared to $856,000 for the same period in 2022. Provision for credit losses for the six months ended June 30, 2023 was $1.4 million, compared to $336,000 for the six months ended June 30, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by weaker economic forecasts, loan growth, and changes in asset quality. Net recoveries for the quarter ended June 30, 2023 were $27,000 compared to net recoveries of $887,000 reported for the same period in 2022. Nonperforming assets represented 0.41% of total assets at June 30, 2023, down from 0.43% at December 31, 2022 and up from the 0.38% reported at June 30, 2022. At June 30, 2023, nonperforming loans and leases totaled $31.4 million, compared to $32.8 million at December 31, 2022 and $29.6 million at June 30, 2022. The increase in loans past due 30-89 days at quarter end June 30, 2023 was mainly due to the inclusion of a $15.3 million commercial real estate loan. Special Mention and Substandard loans and leases totaled $118.1 million at June 30, 2023, reflecting an increase from the $98.3 million reported at December 31, 2022, and $115.0 million at June 30, 2022. The increase over year-end in Special Mention and Substandard was mainly a result of the downgrade of one commercial real estate loan added to Special Mention during the second quarter of 2023 and the downgrade of one commercial real estate loan previously reported as Special Mention. CAPITAL POSITION Capital ratios at June 30, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.48% at June 30, 2023, compared to 14.42% at December 31, 2022 and 14.07% at June 30, 2022. The ratio of Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.34% at December 31, 2022 and 9.02% at June 30, 2022. During the second quarter of 2023, the Company repurchased 108,219 common shares at an aggregate cost of $6.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021. The Company announced today that its Board of Directors has authorized a new Stock Repurchase Program to repurchase up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, from time to time, over the next 24 months. LIQUIDITY POSITION The Company's liquidity position remained stable from the first quarter of 2023. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and FHLB advances. The Company maintains ready access liquidity of $1.7 billion, or 22.3% of total assets at June 30, 2023. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At June 30, 2023 the Company had an available borrowing capacity at the FHLB of $1.3 billion, unchanged from the first quarter of 2023. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At June 30, 2023 the available borrowing capacity with the Federal Reserve Bank was $245.7 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at June 30, 2023, the Company maintained $137.7 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, 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 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", or "anticipate", the negative and other variations of these terms 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 and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in 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; our ability to attract and retain deposits and access other sources of liquidity; GDP growth; 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, such as state and local government mandates, SEC rule-making, the Dodd-Frank Act and Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; 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; cyber security 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; uncertainties arising from national and global events, including the war in Ukraine, as well as the potential impact of widespread protests, civil unrest, political uncertainty on the economy and the financial services industry, and pandemics or other public health crises, including the COVID-19 pandemic; and access to 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 06/30/2023 12/31/2022 (Audited) Cash and noninterest bearing balances due from banks $ 65,916 $ 18,572 Interest bearing balances due from banks 15,698 59,265 Cash and Cash Equivalents 81,614 77,837 Available-for-sale debt securities, at fair value (amortized cost of $1,688,051 at June 30, 2023 and $1,831,791 at December 31, 2022) 1,468,003 1,594,967 Held-to-maturity securities, at amortized cost (fair value of $262,444 at June 30, 2023 and $261,692 at December 31, 2022) 312,369 312,344 Equity securities, at fair value 778 777 Total loans and leases, net of unearned income and deferred costs and fees 5,352,365 5,268,911 Less: Allowance for credit losses 48,545 45,934 Net Loans and Leases 5,303,820 5,222,977 Federal Home Loan Bank and other stock 23,649 17,720 Bank premises and equipment, net 81,087 82,140 Corporate owned life insurance 86,709 85,556 Goodwill 92,602 92,602 Other intangible assets, net 2,513 2,708 Accrued interest and other assets 173,094 181,058 Total Assets $ 7,626,238 $ 7,670,686 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,659,220 3,820,739 Time 770,594 631,411 Noninterest bearing 2,024,837 2,150,145 Total Deposits 6,454,651 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 56,278 Other borrowings 387,100 291,300 Other liabilities 97,563 103,423 Total Liabilities $ 6,989,797 $ 7,053,296 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,441,413 at June 30, 2023; and 14,555,741 at December 31, 2022 1,444 1,456 Additional paid-in capital 298,133 302,763 Retained earnings 537,095 526,727 Accumulated other comprehensive loss (195,520 ) (208,689 ) Treasury stock, at cost – 124,265 shares at June 30, 2023, and 128,749 shares at December 31, 2022 (6,185 ) (6,279 ) Total Tompkins Financial Corporation Shareholders’ Equity 634,967 615,978 Noncontrolling interests 1,474 1,412 Total Equity $ 636,441 $ 617,390 Total Liabilities and Equity $ 7,626,238 $ 7,670,686 TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended 06/30/2023 06/30/2022 06/30/2023 06/30/2022 INTEREST AND DIVIDEND INCOME Loans $ 63,527 $ 52,505 $ 124,369 $ 103,636 Due from banks 183 64 322 105 Available-for-sale debt securities 6,618 7,063 13,361 13,833 Held-to-maturity securities 1,219 1,201 2,433 2,330 Federal Home Loan Bank and other stock 323 120 623 225 Total Interest and Dividend Income 71,870 $ 60,953 $ 141,108 $ 120,129 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 2,526 400 4,313 826 Other deposits 13,119 1,647 23,513 3,267 Federal funds purchased and securities sold under agreements to repurchase 15 15 29 31 Other borrowings 4,314 629 7,111 1,129 Total Interest Expense 19,974 2,691 34,966 5,253 Net Interest Income 51,896 58,262 106,142 114,876 Less: Provision for credit loss expense 2,253 856 1,428 336 Net Interest Income After Credit for Credit Loss Expense 49,643 57,406 104,714 114,540 NONINTEREST INCOME Insurance commissions and fees 8,672 8,429 18,181 17,746 Wealth management fees 4,678 4,596 9,187 9,513 Service charges on deposit accounts 1,640 1,756 3,386 3,535 Card services income 3,087 2,959 5,769 5,502 Other income 1,603 1,241 3,544 2,717 Net loss on securities transactions (7,065 ) (37 ) (7,052 ) (84 ) Total Noninterest Income 12,615 18,944 33,015 38,929 NONINTEREST EXPENSE Salaries and wages 25,337 24,396 49,849 47,668 Other employee benefits 6,647 6,341 13,388 12,138 Net occupancy expense of premises 3,327 3,131 6,626 6,672 Furniture and fixture expense 2,105 2,004 4,159 3,995 Amortization of intangible assets 84 219 167 437 Other operating expense 14,468 13,029 27,937 25,049 Total Noninterest Expenses 51,968 49,120 102,126 95,959 Income Before Income Tax Expense 10,290 27,230 35,603 57,510 Income Tax Expense 1,784 6,329 7,685 13,305 Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 8,506 20,901 27,918 44,205 Less: Net Income Attributable to Noncontrolling Interests 31 32 62 63 Net Income Attributable to Tompkins Financial Corporation $ 8,475 20,869 27,856 44,142 Basic Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.06 Diluted Earnings Per Share $ 0.59 $ 1.45 $ 1.94 $ 3.05 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended June 30, 2023 June 30, 2022 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 $ 13,585 $ 183 5.40 % $ 88,094 $ 64 0.29 % Securities (1) U.S. Government securities 1,972,719 7,304 1.49 % 2,305,102 7,746 1.35 % State and municipal (2) 92,194 590 2.57 % 97,481 619 2.55 % Other securities (2) 3,288 56 6.86 % 3,337 28 3.40 % Total securities 2,068,201 7,950 1.54 % 2,405,920 8,393 1.40 % FHLBNY and FRB stock 23,211 323 5.59 % 12,234 120 3.92 % Total loans and leases, net of unearned income (2)(3) 5,304,717 63,709 4.82 % 5,115,340 52,733 4.14 % Total interest-earning assets 7,409,714 72,165 3.91 % 7,621,588 61,310 3.23 % Other assets 226,086 209,057 Total assets $ 7,635,800 $ 7,830,645 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,701,229 $ 10,590 1.15 % $ 4,073,279 $ 890 0.09 % Time deposits 745,970 5,055 2.72 % 603,791 1,157 0.77 % Total interest-bearing deposits 4,447,199 15,645 1.41 % 4,677,070 2,047 0.18 % Federal funds purchased & securities sold under agreements to repurchase 56,083 15 0.11 % 54,885 15 0.11 % Other borrowings 379,744 4,314 4.56 % 169,390 629 1.49 % Total interest-bearing liabilities 4,883,026 19,974 1.64 % 4,901,345 2,691 0.22 % Noninterest bearing deposits 2,004,560 2,189,132 Accrued expenses and other liabilities 97,660 100,813 Total liabilities 6,985,246 7,191,290 Tompkins Financial Corporation Shareholders’ equity 649,097 637,896 Noncontrolling interest 1,457 1,459 Total equity 650,554 639,355 Total liabilities and equity $ 7,635,800 $ 7,830,645 Interest rate spread 2.27 % 3.01 % Net interest income/margin on earning assets 52,191 2.83 % 58,619 3.09 % Tax Equivalent Adjustment (295 ) (357 ) Net interest income per consolidated financial statements $ 51,896 $ 58,262 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Year to Date Period Ended Year to Date Period Ended June 30, 2023 June 30, 2022 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 $ 13,161 $ 322 4.93 % $ 110,984 $ 105 0.19 % Securities (1) U.S. Government securities 2,002,846 14,728 1.48 % 2,299,389 15,108 1.32 % State and municipal (2) 92,695 1,188 2.58 % 99,602 1,267 2.57 % Other securities (2) 3,286 110 6.70 % 3,363 51 3.06 % Total securities 2,098,827 16,026 1.54 % 2,402,354 16,426 1.38 % FHLBNY and FRB stock 19,998 623 6.29 % 11,172 225 4.06 % Total loans and leases, net of unearned income (2)(3) 5,278,145 124,744 4.77 % 5,085,808 104,088 4.13 % Total interest-earning assets 7,410,131 141,715 3.86 % 7,610,318 120,844 3.20 % Other assets 224,671 259,809 Total assets $ 7,634,802 $ 7,870,127 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,767,032 $ 19,230 1.03 % $ 4,116,870 $ 1,638 0.08 % Time deposits 710,119 8,596 2.44 % 617,616 2,455 0.80 % Total interest-bearing deposits 4,477,151 27,826 1.25 % 4,734,486 4,093 0.17 % Federal funds purchased & securities sold under agreements to repurchase 56,799 29 0.10 % 59,536 31 0.11 % Other borrowings 325,052 7,111 4.41 % 147,466 1,129 1.54 % Total interest-bearing liabilities 4,859,002 34,966 1.45 % 4,941,488 5,253 0.21 % Noninterest bearing deposits 2,034,961 2,149,201 Accrued expenses and other liabilities 99,905 103,451 Total liabilities 6,993,868 7,194,140 Tompkins Financial Corporation Shareholders’ equity 639,494 674,545 Noncontrolling interest 1,440 1,442 Total equity 640,934 675,987 Total liabilities and equity $ 7,634,802 $ 7,870,127 Interest rate spread 2.41 % 2.99 % Net interest income/margin on earning assets 106,749 2.90 % 115,591 3.06 % Tax Equivalent Adjustment (607 ) (715 ) Net interest income per consolidated financial statements $ 106,142 $ 114,876 Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Securities $ 1,781,150 $ 1,899,001 $ 1,908,088 $ 2,054,036 $ 2,204,851 $ 1,908,088 Total Loans 5,352,365 5,273,671 5,268,911 5,208,436 5,162,503 5,268,911 Allowance for credit losses 48,545 46,099 45,934 44,772 43,793 45,934 Total assets 7,626,238 7,644,371 7,670,686 7,779,941 7,842,461 7,670,686 Total deposits 6,454,651 6,509,009 6,602,295 6,936,726 6,769,521 6,602,295 Federal funds purchased and securities sold under agreements to repurchase 50,483 63,491 56,278 55,340 50,075 56,278 Other borrowings 387,100 327,000 291,300 101,000 295,600 291,300 Total common equity 634,967 648,322 615,978 571,453 622,843 615,978 Total equity 636,441 649,765 617,390 572,959 624,318 617,390 Average Balance Sheet Average earning assets $ 7,409,714 $ 7,410,553 $ 7,568,656 $ 7,639,123 $ 7,621,588 $ 7,607,078 Average assets 7,635,800 7,633,793 7,721,335 7,853,847 7,830,645 7,828,520 Average interest-bearing liabilities 4,883,026 4,834,712 4,828,561 4,861,857 4,901,345 4,892,952 Average equity 650,554 631,208 580,720 635,324 639,354 641,726 Share data Weighted average shares outstanding (basic) 14,314,133 14,326,595 14,308,323 14,289,022 14,317,415 14,328,280 Weighted average shares outstanding (diluted) 14,346,787 14,389,673 14,385,884 14,367,149 14,387,601 14,404,294 Period-end shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Common equity book value per share $ 44.08 $ 44.65 $ 42.42 $ 39.45 $ 42.94 $ 42.42 Tangible book value per share (Non-GAAP)** $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 **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 $ 51,896 $ 54,246 $ 57,294 $ 58,111 $ 58,262 $ 230,281 (Credit) provision for credit loss expense (5) 2,253 (825 ) 1,397 1,056 856 2,789 Noninterest income 12,615 20,400 18,351 20,692 18,944 77,972 Noninterest expense (5) 51,968 50,158 50,190 49,602 49,120 195,751 Income tax expense 1,784 5,901 4,478 6,774 6,329 24,557 Net income attributable to Tompkins Financial Corporation 8,475 19,381 19,548 21,340 20,869 85,030 Noncontrolling interests 31 31 32 31 32 126 Basic earnings per share (4) 0.59 1.35 1.36 1.49 1.45 5.92 Diluted earnings per share (4) 0.59 1.35 1.36 1.48 1.45 5.89 Nonperforming Assets Nonaccrual loans and leases $ 31,333 $ 28,424 $ 28,289 $ 30,013 $ 24,665 $ 28,289 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Performing troubled debt restructuring* 0 0 4,530 4,730 4,872 4,530 Total nonperforming loans and leases 31,367 28,437 32,844 34,904 29,599 32,844 OREO 36 36 152 335 122 152 Total nonperforming assets $ 31,403 $ 28,473 $ 32,996 $ 35,239 $ 29,721 $ 32,996 *No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023. Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Loans and leases 30-89 days past due and accruing $ 20,255 $ 5,894 $ 3,172 $ 3,160 $ 9,837 $ 3,172 Loans and leases 90 days past due and accruing 34 13 25 161 62 25 Total loans and leases past due and accruing 20,289 5,907 3,197 3,321 9,899 3,197 Allowance for Credit Losses Balance at beginning of period $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 42,126 $ 42,843 Impact of adopting ASC 326 0 64 0 0 0 0 Provision (credit) for credit losses 2,419 (1,180 ) 1,352 1,101 780 $ 2,499 Net loan and lease (recoveries) charge-offs (27 ) (1,281 ) 190 122 (887 ) $ (592 ) Allowance for credit losses at end of period $ 48,545 $ 46,099 $ 45,934 $ 44,772 $ 43,793 $ 45,934 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,720 $ 2,506 (Credit) provision for credit losses (166 ) 355 45 (45 ) 76 $ 290 Allowance for credit losses at end of period $ 2,985 $ 3,151 $ 2,796 $ 2,751 $ 2,796 $ 2,796 Loan Classification - Total Portfolio Special Mention $ 56,305 $ 39,255 $ 49,752 $ 66,730 $ 72,270 $ 49,752 Substandard 61,820 46,315 48,537 40,007 42,756 48,537 Ratio Analysis Credit Quality Nonperforming loans and leases/total loans and leases 0.59 % 0.54 % 0.62 % 0.67 % 0.57 % 0.62 % Nonperforming assets/total assets 0.41 % 0.37 % 0.43 % 0.45 % 0.38 % 0.43 % Allowance for credit losses/total loans and leases 0.91 % 0.87 % 0.87 % 0.86 % 0.85 % 0.87 % Allowance/nonperforming loans and leases 154.76 % 162.11 % 139.86 % 128.27 % 147.95 % 139.85 % Net loan and lease losses annualized/total average loans and leases 0.00 % (0.10 )% 0.01 % 0.01 % (0.07 )% (0.01 )% Capital Adequacy Tier 1 Capital (to average assets) 9.57 % 9.63 % 9.34 % 9.14 % 9.02 % 9.34 % Total Capital (to risk-weighted assets) 14.48 % 14.62 % 14.42 % 14.26 % 14.07 % 14.42 % Profitability (period-end) Return on average assets * 0.45 % 1.03 % 1.00 % 1.08 % 1.07 % 1.09 % Return on average equity * 5.22 % 12.45 % 13.36 % 13.33 % 13.09 % 13.25 % Net interest margin (TE) * 2.83 % 2.99 % 3.02 % 3.04 % 3.09 % 3.05 % * 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 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 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 Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Dec-22 Total common equity $ 634,967 $ 648,322 $ 615,978 $ 571,453 $ 622,843 $ 615,978 Less: Goodwill and intangibles 94,169 94,253 94,336 94,554 94,617 94,336 Tangible common equity (Non-GAAP) 540,798 554,069 521,642 476,899 528,226 521,642 Ending shares outstanding 14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 Tangible book value per share (Non-GAAP) $ 37.54 $ 38.16 $ 35.93 $ 32.93 $ 36.42 $ 35.93 (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 2023 and 2022 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, 2022. (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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230721547318/en/
Stephen S. Romaine, President & CEO Francis M. Fetsko, Executive VP, CFO & COO Tompkins Financial Corporation (888) 503-5753
