8-K
TOMPKINS FINANCIAL CORP (TMP)
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The SecuritiesExchange Act of 1934
| Date<br>of Report (Date of earliest event reported) | April 30, 2021 | |
|---|---|---|
| Tompkins Financial Corporation | ||
| --- | --- | --- |
| (Exact name of registrant as specified in its charter) | ||
| New York | 1-12709 | 16-1482357 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| P.O. Box 460, Ithaca New York | 14851 | |
| (Address of Principal executive offices) | (Zip<br>Code) | |
| Registrant’s telephone number,<br> including area code | (607) 273-3210 | |
| --- | --- | |
| (Former name or former address, if changed since last report.) | ||
| --- |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which <br><br>registered |
|---|---|---|
| Common Stock, $0.10 par value | TMP | NYSE American, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected<br>not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant<br>to Section 13(a) of the Exchange Act. ☐ | |
| --- |
Item 2.02 Results of Operations and Financial Condition
On April 30, 2021, Tompkins Financial Corporation, (the “Company”) issued a press release announcing its earnings for the calendar quarter ended March 31, 2021. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
Item 8.01 Other Events
On April 30, 2021, the Company issued a press release announcing that its Board of Directors approved payment of a regular quarterly cash dividend of $0.54 per share, payable on May 17, 2021, to common shareholders of record on May 11, 2021. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
| (a) | Not applicable. |
|---|---|
| (b) | Not applicable. |
| --- | --- |
| (c) | Not applicable. |
| --- | --- |
| (d) | Exhibits. |
| --- | --- |
EXHIBIT INDEX
| Exhibit No. | Description | |
|---|---|---|
| 99.1 | Press Release of Tompkins Financial Corporation dated April 30, 2021 | |
| 99.2 | Press Release of Tompkins Financial Corporation dated April 30, 2021 | |
| 104 | Cover<br>Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TOMPKINS FINANCIAL CORPORATION | |
|---|---|
| Date: April 30, 2021 | /S/ Stephen S. Romaine |
| Stephen S. Romaine | |
| President and CEO |
Tompkins Financial Corporation 8-K
EXHIBIT 99.1
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753
For Immediate Release
Friday, April 30, 2021
Tompkins Financial Corporation Reports Record First Quarter Earnings
ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation reported diluted earnings per share of $1.72 for the first quarter of 2021, 224.5% over the first quarter of 2020. Net income was $25.6 million for the first quarter of 2021, an increase of 222.4% from the $7.9 million reported for the same period in 2020.
President and CEO, Mr. Stephen Romaine commented, “We are extremely pleased to start off 2021 with record quarterly earnings. Results for the quarter, when compared to the same period last year, reflected favorable revenue trends for all three business lines, including increased net interest income, increased insurance commissions, and increased investment services fees. At the same time, expenses for the quarter were down from the same quarter last year. Growth comparisons to the previous year are significantly impacted by the change in provision for credit losses from a $16.3 million expense in the first quarter of 2020, compared to a $2.5 million credit in the first quarter of 2021. The provision for the first quarter of 2020 reflected the highly uncertain economic conditions related to the onset of the COVID-19 pandemic and economic forecasts and other model assumptions relied upon by management in determining the allowance.”
SELECTED HIGHLIGHTS FOR THE FIRST QUARTER:
| • | Diluted earnings per share of $1.72 represents the best quarter in the Company’s<br>history, and is up 224.5% over the same period in 2020. |
|---|---|
| • | Provision for credit losses was a $2.5 million credit for the first quarter<br>of 2021, compared to an expense of $16.3 million for the same period last year. |
| --- | --- |
| • | Total loans of $5.3 billion at March 31, 2021 were up $355.0 million, or<br>7.2% over March 31, 2020. Loan growth over the prior period includes a $370.0 million increase related to loans originated under<br>the Small Business Association (SBA) Paycheck Protection Program (PPP). |
| --- | --- |
| • | Total deposits of $6.9 billion at March 31, 2021, an increase of $1.5 billion,<br>or 28.4% over March 31, 2020. |
| --- | --- |
NET INTEREST INCOME
Net interest income was $55.0 million for the first quarter of 2021, up from $53.0 million for the same period in 2020, and down from $57.8 million for the most recent prior quarter. Net interest income for the current quarter included $2.8 million of net deferred loan fees associated with PPP loans, compared to net deferred loan fees of $4.5 million in the fourth quarter of 2020. There were no net deferred loan fees related to PPP loans in the first quarter of 2020. Net interest income in the first quarter of 2021 also benefited from lower rates paid on deposit products due to lower market interest rates.
Average loans for the quarter ended March 31, 2021 were up $377.3 million, or 7.7% compared to the same period in 2020. The increase in average loans was mainly in commercial loans, driven largely by PPP loans and commercial real estate loans. Asset yields for the quarter ended March 31, 2021, were down 84 basis points compared to the quarter ended March 31, 2020, which reflects the impact of reductions in market interest rates over the past twelve months as well as the increase in average securities and average interest bearing balances due from banks. While PPP loans were a significant contributor to average loan growth, increases in commercial real estate and residential loans were up 5.6% and 1.7%, respectively, over the same period in the prior year.
Average total deposits for the first quarter of 2021 were up $1.3 billion, or 25.4% compared to the same period in 2020. Average noninterest bearing deposits for the three months ended March 31, 2021 were up $540.0 million or 38.3% compared to the three months ended March 31, 2020. Average deposit balances during the first quarter of 2021 benefited from PPP loan originations, the majority of which were deposited in Tompkins checking accounts. For the first quarter of 2021, the average rate paid on interest-bearing deposit products decreased by 47 basis points from the same period in 2020 due to the overall decline in market interest rates. The total cost of interest-bearing liabilities was 0.38% at March 31, 2021, a decline of 54 basis points from March 31, 2020.
Net interest margin was 3.01% for the first quarter of 2021, compared to 3.44% reported for the same period in 2020, and 3.12% for the fourth quarter of 2020.
NONINTEREST INCOME
Noninterest income of $20.0 million was up 5.4% compared to the same period in 2020. Growth over the same quarter last year was supported by a 13.9% increase in insurance commissions and fees, an 11.2% increase in investment services income, and a 9.2% increase in card services income. These increases were partially offset by lower deposit fees and lower gains on securities transactions. Noninterest income represented 26.6% of total revenues for the first quarter of 2021.
NONINTEREST EXPENSE
Noninterest expense was $45.2 million for the first quarter of 2021, down $549,000, or 1.2%, from the first quarter of 2020. Salaries and employee benefits were relatively flat when compared to the same quarter last year. The decrease in noninterest expense for the first quarter of 2021 was primarily attributable to lower marketing expenses, which were down $447,000 from the first quarter of 2020.
INCOME TAX EXPENSE
The Company’s effective tax rate was 20.7% for the first quarter of 2021, compared to 19.4% for the same period in 2020.
ASSET QUALITY
Provision for credit losses for the first quarter of 2021 was a credit of $2.5 million compared to an expense of $16.3 million for the same period in 2020. Net recoveries for the quarter ended March 31, 2021 were $180,000 compared to charge-offs of $1.2 million reported for the same period in 2020.
The allowance for credit losses represented 0.93% of total loans and leases at March 31, 2021, down from 1.06% at March 31, 2020, and 0.98% at December 31, 2020. Nonperforming loans and leases totaled $47.7 million at March 31, 2021, compared to $30.7 million at March 31, 2020, and $45.8 million at December 31, 2020. The ratio of the allowance to total nonperforming loans and leases was 103.38% at March 31, 2021, down compared to 170.74% at March 31, 2020, and 112.87% at December 31, 2020. Nonperforming assets represented 0.59% of total assets at March 31, 2021, up from 0.46% at March 31, 2020, and down from 0.60% at December 31, 2020.
Special Mention and Substandard loans and leases totaled $185.2 million at March 31, 2021, up compared to the $90.0 million at March 31, 2020, and down compared to the $189.9 million reported at December 31, 2020. Total Substandard loans and leases of $68.5 million at March 31, 2021, were in line with December 31, 2020, and up compared to the $52.9 million reported at March 31, 2020. The increases in nonperforming loans and leases and Substandard loans compared to prior year, were mainly related to the downgrades of credits in the loan portfolio related to the hospitality industry, which was significantly impacted by the COVID-19 pandemic. Included in the nonperforming loans and leases and Substandard loans and leases are 12 loans totaling $35.5 million that are currently in deferral status.
During 2020 and 2021, overall credit quality has been supported by several plans initiated by the Company in response to the COVID-19 pandemic. As previously announced, Tompkins initiated and participated in a number of credit initiatives to support customers who have been impacted by the economic conditions associated with the COVID-19 pandemic. The Company implemented a payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. As of March 31, 2021, total loans that continued in a deferral status amounted to approximately $195.6 million, representing 3.7% of total loans.
As previously noted, the Company participated in the PPP, which provides SBA borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related expenses and certain other eligible business operating costs, all in accordance with the rules and regulations established by the SBA. The Company began accepting applications for PPP loans on April 3, 2020, and had funded 2,998 loans totaling approximately $465.6 million when the initial program ended. As of April 10, 2021, approximately 2,314 of these PPP loans totaling $300.8 million had been forgiven by the SBA under the terms of the PPP program.
In addition, on January 19, 2021, the Company began accepting both first draw and second draw applications for the reopening of the PPP program. As of April 10, 2021, the Company had submitted 2,013 applications totaling $223.4 million to the SBA, of which 1,919 applications totaling $215.9 million had been approved by the SBA and disbursed to customers.
CAPITAL POSITION
Capital ratios at March 31, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets improved to 14.62% at March 31, 2021, up from 13.62% at March 31, 2020, and 14.39% at December 31, 2020. The ratio of Tier 1 capital to average assets was 8.89% at March 31, 2021, compared to 9.53% at March 31, 2020, and 8.75% at December 31, 2020.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.
“Safe Harbor” Statement underthe Private Securities Litigation Reform of 1995:
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Examples of forward-looking statements in this press release include, without limitation, those regarding the novel coronavirus (COVID-19) and our plans in response to the coronavirus. Forward-looking statements may be identified by use of such words as “may”, “will”, “estimate”, “intend”, “continue”, “believe”, “expect”, “plan”, or “anticipate”, and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Reports on Form 10- K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; the severity and duration of the COVID-19 pandemic and the impact of COVID-19 (including the government’s response thereto) on economic and financial markets, potential regulatory actions, and modifications to our operations, products, and services relating thereto; disruptions in our and our customers’ operations and loss of revenue due to pandemics, epidemics, widespread health emergencies, government-imposed travel/business restrictions, or outbreaks of infectious diseases such as the coronavirus, and the associated adverse impact on our financial position, liquidity, and our customers’ abilities to repay their obligations to us or willingness to obtain financial services products from the Company; the development of an interest rate environment that may adversely affect the Company’s interest rate spread, other income or cash flow anticipated from the Company’s operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, such as the Dodd-Frank Act, Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; legislative and regulatory changes in response to COVID-19 with which we and our subsidiaries must comply, including the CARES Act and the Consolidated Appropriations Act, 2021 and the rules and regulations promulgated thereunder, and state and local government mandates; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; uncertainties arising from national and global events, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. The Company does not undertake any obligation to update its forward-looking statements.
TOMPKINS FINANCIALCORPORATION
CONSOLIDATED STATEMENTSOF CONDITION
| (In thousands, except share and per share data) | As of | ||||
|---|---|---|---|---|---|
| ASSETS | 12/31/2020 | ||||
| Cash and noninterest bearing balances due from banks | 20,482 | $ | 21,245 | ||
| Interest bearing balances due from banks | 497,943 | 367,217 | |||
| Cash and Cash Equivalents | 518,425 | 388,462 | |||
| Available-for-sale debt securities, at fair value (amortized cost of 1,941,284 at March 31, 2021 and 1,599,894 at December 31, 2020) | 1,934,815 | 1,627,193 | |||
| Equity securities, at fair value (amortized cost 916 at March 31, 2021 and 929 at December 31, 2020) | 916 | 929 | |||
| Total loans and leases, net of unearned income and deferred costs and fees | 5,292,793 | 5,260,327 | |||
| Less: Allowance for credit losses | 49,339 | 51,669 | |||
| Net Loans and Leases | 5,243,454 | 5,208,658 | |||
| Federal Home Loan Bank and other stock | 16,382 | 16,382 | |||
| Bank premises and equipment, net | 87,518 | 88,709 | |||
| Corporate owned life insurance | 85,157 | 84,736 | |||
| Goodwill | 92,447 | 92,447 | |||
| Other intangible assets, net | 4,601 | 4,905 | |||
| Accrued interest and other assets | 111,627 | 109,750 | |||
| Total Assets | 8,095,342 | $ | 7,622,171 | ||
| LIABILITIES | |||||
| Deposits: | |||||
| Interest bearing: | |||||
| Checking, savings and money market | 4,135,067 | 3,761,933 | |||
| Time | 749,792 | 746,234 | |||
| Noninterest bearing | 2,061,682 | 1,929,585 | |||
| Total Deposits | 6,946,541 | 6,437,752 | |||
| Federal funds purchased and securities sold under agreements to repurchase | 47,496 | 65,845 | |||
| Other borrowings | 265,000 | 265,000 | |||
| Trust preferred debentures | 13,260 | 13,220 | |||
| Other liabilities | 113,109 | 122,665 | |||
| Total Liabilities | 7,385,406 | $ | 6,904,482 | ||
| EQUITY | |||||
| Tompkins Financial Corporation shareholders' equity: | |||||
| Common Stock - par value .10 per share: Authorized 25,000,000 shares; Issued: 14,942,695 at March 31, 2021; and 14,964,389 at December 31, 2020 | 1,494 | 1,496 | |||
| Additional paid-in capital | 333,247 | 333,976 | |||
| Retained earnings | 435,990 | 418,413 | |||
| Accumulated other comprehensive loss | (56,950 | ) | (32,074 | ) | |
| Treasury stock, at cost – 118,454 shares at March 31, 2021, and 124,849 shares at December 31, 2020 | (5,288 | ) | (5,534 | ) | |
| Total Tompkins Financial Corporation Shareholders’ Equity | 708,493 | 716,277 | |||
| Noncontrolling interests | 1,443 | 1,412 | |||
| Total Equity | 709,936 | $ | 717,689 | ||
| Total Liabilities and Equity | 8,095,342 | $ | 7,622,171 |
All values are in US Dollars.
TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
| (In thousands, except per share data) (Unaudited) | ||||
|---|---|---|---|---|
| 03/31/2020 | ||||
| INTEREST AND DIVIDEND INCOME | ||||
| Loans | 54,206 | $ | 55,614 | |
| Due from banks | 85 | 6 | ||
| Available-for-sale debt securities | 5,250 | 7,144 | ||
| Federal Home Loan Bank and other stock | 213 | 435 | ||
| Total Interest and Dividend Income | 59,754 | $ | 63,199 | |
| INTEREST EXPENSE | ||||
| Time certificates of deposits of 250,000 or more | 639 | 843 | ||
| Other deposits | 2,511 | 6,356 | ||
| Federal funds purchased and securities sold under agreements to repurchase | 16 | 36 | ||
| Trust preferred debentures | 175 | 289 | ||
| Other borrowings | 1,376 | 2,706 | ||
| Total Interest Expense | 4,717 | 10,230 | ||
| Net Interest Income | 55,037 | 52,969 | ||
| Less: (Credit) provision for credit loss expense | (2,510 | ) | 16,294 | |
| Net Interest Income After Provision for Credit Loss Expense | 57,547 | 36,675 | ||
| NONINTEREST INCOME | ||||
| Insurance commissions and fees | 9,166 | 8,045 | ||
| Investment services income | 4,673 | 4,202 | ||
| Service charges on deposit accounts | 1,470 | 1,983 | ||
| Card services income | 2,383 | 2,183 | ||
| Other income | 1,974 | 2,104 | ||
| Net gain on securities transactions | 317 | 443 | ||
| Total Noninterest Income | 19,983 | 18,960 | ||
| NONINTEREST EXPENSE | ||||
| Salaries and wages | 22,660 | 22,494 | ||
| Other employee benefits | 5,484 | 5,684 | ||
| Net occupancy expense of premises | 3,462 | 3,328 | ||
| Furniture and fixture expense | 1,950 | 1,985 | ||
| Amortization of intangible assets | 330 | 374 | ||
| Other operating expense | 11,305 | 11,875 | ||
| Total Noninterest Expenses | 45,191 | 45,740 | ||
| Income Before Income Tax Expense | 32,339 | 9,895 | ||
| Income Tax Expense | 6,680 | 1,909 | ||
| Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation | 25,659 | 7,986 | ||
| Less: Net Income Attributable to Noncontrolling Interests | 33 | 37 | ||
| Net Income Attributable to Tompkins Financial Corporation | 25,626 | 7,949 | ||
| Basic Earnings Per Share | 1.73 | $ | 0.53 | |
| Diluted Earnings Per Share | 1.72 | $ | 0.53 |
All values are in US Dollars.
Average Consolidated Statements of Condition and Net InterestAnalysis (Unaudited)
| Quarter Ended | Quarter Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2021 | March 31, 2020 | |||||||||||||||
| Average | Average | |||||||||||||||
| Balance | Average | Balance | Average | |||||||||||||
| (Dollar amounts in thousands) | (QTD) | Interest | Yield/Rate | (QTD) | Interest | Yield/Rate | ||||||||||
| ASSETS | ||||||||||||||||
| Interest-earning assets | ||||||||||||||||
| Interest-bearing balances due from banks | $ | 408,642 | $ | 85 | 0.08 | % | $ | 1,525 | $ | 6 | 1.58 | % | ||||
| Securities (1) | ||||||||||||||||
| U.S. Government securities | 1,635,143 | 4,612 | 1.14 | % | 1,194,754 | 6,576 | 2.21 | % | ||||||||
| State and municipal (2) | 120,959 | 775 | 2.60 | % | 97,480 | 666 | 2.75 | % | ||||||||
| Other securities (2) | 3,425 | 23 | 2.75 | % | 3,422 | 36 | 4.23 | % | ||||||||
| Total securities | 1,759,527 | 5,410 | 1.25 | % | 1,295,656 | 7,278 | 2.26 | % | ||||||||
| FHLBNY and FRB stock | 16,382 | 213 | 5.27 | % | 26,558 | 435 | 6.59 | % | ||||||||
| Total loans and leases, net of unearned income (2)(3) | 5,291,295 | 54,454 | 4.17 | % | 4,914,034 | 55,906 | 4.58 | % | ||||||||
| Total interest-earning assets | 7,475,846 | 60,162 | 3.26 | % | 6,237,773 | 63,625 | 4.10 | % | ||||||||
| Other assets | 350,826 | 435,175 | ||||||||||||||
| Total assets | $ | 7,826,672 | $ | 6,672,948 | ||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||
| Deposits | ||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||
| Interest bearing checking, savings, & money market | 3,949,304 | 1,093 | 0.11 | % | 3,212,543 | 4,366 | 0.55 | % | ||||||||
| Time deposits | 749,328 | 2,057 | 1.11 | % | 680,248 | 2,833 | 1.68 | % | ||||||||
| Total interest-bearing deposits | 4,698,632 | 3,150 | 0.27 | % | 3,892,791 | 7,199 | 0.74 | % | ||||||||
| Federal funds purchased & securities sold under agreements to<br> repurchase | 59,584 | 16 | 0.11 | % | 63,528 | 36 | 0.23 | % | ||||||||
| Other borrowings | 265,001 | 1,376 | 2.11 | % | 498,428 | 2,706 | 2.18 | % | ||||||||
| Trust preferred debentures | 13,234 | 175 | 5.35 | % | 17,050 | 289 | 6.82 | % | ||||||||
| Total interest-bearing liabilities | 5,036,451 | 4,717 | 0.38 | % | 4,471,797 | 10,230 | 0.92 | % | ||||||||
| Noninterest bearing deposits | 1,949,643 | 1,409,661 | ||||||||||||||
| Accrued expenses and other liabilities | 119,860 | 112,673 | ||||||||||||||
| Total liabilities | 7,105,954 | 5,994,131 | ||||||||||||||
| Tompkins Financial Corporation Shareholders’ equity | 719,290 | 677,394 | ||||||||||||||
| Noncontrolling interest | 1,428 | 1,423 | ||||||||||||||
| Total equity | 720,718 | 678,817 | ||||||||||||||
| Total liabilities and equity | $ | 7,826,672 | $ | 6,672,948 | ||||||||||||
| Interest rate spread | 2.88 | % | 3.18 | % | ||||||||||||
| Net interest income/margin on earning assets | 55,445 | 3.01 | % | 53,395 | 3.44 | % | ||||||||||
| Tax Equivalent Adjustment | (408 | ) | (426 | ) | ||||||||||||
| Net interest income per consolidated financial statements | $ | 55,037 | $ | 52,969 |
Tompkins Financial Corporation - Summary FinancialData (Unaudited)
(In thousands, except per share data)
| Quarter-Ended | Year-Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Period End Balance Sheet | Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-20 | ||||||
| Securities | $ | 1,935,731 | $ | 1,628,122 | $ | 1,667,698 | $ | 1,336,087 | $ | 1,353,567 | $ | 1,628,122 |
| Total Loans | 5,292,793 | 5,260,327 | 5,398,297 | 5,424,285 | 4,937,822 | 5,260,327 | ||||||
| Allowance for credit losses | 49,339 | 51,669 | 52,293 | 52,082 | 52,404 | 51,669 | ||||||
| Total assets | 8,095,342 | 7,622,171 | 7,794,502 | 7,582,056 | 6,743,114 | 7,622,171 | ||||||
| Total deposits | 6,946,541 | 6,437,752 | 6,601,238 | 6,377,521 | 5,409,363 | 6,437,752 | ||||||
| Federal funds purchased and securities sold under agreements to repurchase | 47,496 | 65,845 | 63,573 | 50,889 | 68,993 | 65,845 | ||||||
| Other borrowings | 265,000 | 265,000 | 285,000 | 325,000 | 457,983 | 265,000 | ||||||
| Trust preferred debentures | 13,260 | 13,220 | 17,163 | 17,120 | 17,078 | 13,220 | ||||||
| Total common equity | 708,493 | 716,277 | 712,104 | 696,553 | 681,153 | 716,277 | ||||||
| Total equity | 709,936 | 717,689 | 713,611 | 698,029 | 682,597 | 717,689 |
Average Balance Sheet
| Average earning assets | $ | 7,475,846 | $ | 7,408,335 | $ | 7,204,049 | $ | 6,616,079 | $ | 6,237,773 | $ | 6,868,958 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average assets | 7,826,672 | 7,758,159 | 7,582,009 | 7,413,945 | 6,672,948 | 7,358,478 | ||||||
| Average interest-bearing liabilities | 5,036,451 | 5,010,037 | 4,861,890 | 4,825,753 | 4,471,797 | 4,793,154 | ||||||
| Average equity | 720,718 | 719,114 | 709,484 | 690,475 | 678,817 | 699,554 |
Share data
| Weighted average shares outstanding (basic) | 14,676,410 | 14,715.124 | 14,697.532 | 14,681.956 | 14,718.948 | 14,703,390 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Weighted average shares outstanding (diluted) | 14,757.558 | 14,751.303 | 14,727.741 | 14,714.848 | 14,774.269 | 14,742,040 | ||||||
| Period-end shares outstanding | 14,906.785 | 14,928.479 | 14,926.252 | 14,914.458 | 14,907.947 | 14,928,479 | ||||||
| Common equity book value per share | $ | 47.53 | $ | 47.98 | $ | 47.71 | $ | 46.70 | $ | 45.69 | $ | 47.98 |
Income Statement
| Net interest income | $ | 55,037 | $ | 57,751 | $ | 58,253 | $ | 56,366 | $ | 52,969 | $ | 225,339 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Credit) provision for credit loss expense | (2,510 | ) | 6 | 199 | (348 | ) | 16,294 | 16,151 | ||||||
| Noninterest income | 19,983 | 18,836 | 18,887 | 17,177 | 18,960 | 73,860 | ||||||||
| Noninterest expense | 45,191 | 46,405 | 46,349 | 46,888 | 45,740 | 185,382 | ||||||||
| Income tax expense | 6,680 | 6,145 | 6,330 | 5,540 | 1,909 | 19,924 | ||||||||
| Net income attributable to Tompkins Financial Corporation | 25,626 | 23,978 | 24,230 | 21,431 | 7,949 | 77,588 | ||||||||
| Noncontrolling interests | 33 | 53 | 32 | 32 | 37 | 154 | ||||||||
| Basic earnings per share (4) | 1.73 | 1.61 | 1.63 | 1.44 | 0.53 | 5.22 | ||||||||
| Diluted earnings per share (4) | 1.72 | 1.61 | 1.63 | 1.44 | 0.53 | 5.20 |
Nonperforming Assets
| Nonaccrual loans and leases | $ | 41,656 | $ | 38,976 | $ | 26,944 | $ | 23,183 | $ | 23,556 | $ | 38,976 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans and leases 90 days past due and accruing | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Troubled debt restructuring not included above | 6,069 | 6,803 | 6,864 | 6,988 | 7,137 | 6,803 | ||||||
| Total nonperforming loans and leases | 47,725 | 45,779 | 33,808 | 30,171 | 30,693 | 45,779 | ||||||
| OREO | 88 | 88 | 196 | 274 | 466 | 88 | ||||||
| Total nonperforming assets | $ | 47,813 | $ | 45,867 | $ | 34,004 | $ | 30,445 | $ | 31,159 | $ | 45,867 |
Tompkins Financial Corporation - SummaryFinancial Data (Unaudited) - continued
| Quarter-Ended | Year-Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Delinquency - Total loan and lease portfolio | Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-20 | ||||||
| Loans and leases 30-89 days past due and accruing | $ | 1,790 | $ | 3,012 | $ | 6,875 | $ | 8,352 | $ | 9,328 | $ | 3,012 |
| Loans and leases 90 days past due and accruing | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
| Total loans and leases past due and accruing | 1,790 | 3,012 | 6,875 | 8,352 | 9,328 | 3,012 |
Allowance for Credit Losses
| Balance at beginning of period | $ | 51,669 | $ | 52,293 | $ | 52,082 | $ | 52,404 | $ | 39,892 | $ | 39,892 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Impact of adopting ASC 326 | 0 | 0 | 0 | 0 | **** | (2,534 | ) | (2,534 | ) | ||||||||
| (Credit) provision for credit losses | (2,510 | ) | 6 | 199 | (348 | ) | **** | 16,294 | 16,151 | ||||||||
| Net loan and lease (recoveries) charge-offs | (180 | ) | 630 | (12 | ) | (26 | ) | **** | 1,248 | 1,840 | |||||||
| Allowance for credit losses at end of period | $ | 49,339 | $ | 51,669 | $ | 52,293 | $ | 52,082 | $ | 52,404 | $ | 51,669 |
Loan Classification - Total Portfolio
| Special Mention | $ | 116,689 | $ | 121,253 | $ | 122,652 | $ | 44,741 | $ | 37,121 | $ | 121,253 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Substandard | 68,487 | 68,645 | 45,384 | 48,046 | 52,894 | 68,645 |
Ratio Analysis
Credit Quality
| Nonperforming loans and leases/total loans and leases (5) | 0.90 | % | 0.87 | % | 0.63 | % | 0.56 | % | 0.62 | % | 0.87 | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonperforming assets/total assets | 0.59 | % | 0.60 | % | 0.44 | % | 0.40 | % | 0.46 | % | 0.60 | % |
| Allowance for credit losses/total loans and leases | 0.93 | % | 0.98 | % | 0.97 | % | 0.96 | % | 1.06 | % | 0.98 | % |
| Allowance/nonperforming loans and leases | 103.38 | % | 112.87 | % | 154.68 | % | 172.62 | % | 170.74 | % | 112.87 | % |
| Net loan and lease losses annualized/total average loans and leases | (0.01 | )% | 0.05 | % | 0.00 | % | 0.00 | % | 0.10 | % | 0.04 | % |
Capital Adequacy
| Tier 1 Capital (to average assets) | 8.89 | % | 8.75 | % | 8.85 | % | 8.79 | % | 9.53 | % | 8.75 | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Capital (to risk-weighted assets) | 14.62 | % | 14.39 | % | 14.26 | % | 13.95 | % | 13.62 | % | 14.39 | % |
Profitability (period-end)
| Return on average assets * | 1.33 | % | 1.23 | % | 1.27 | % | 1.16 | % | 0.48 | % | 1.05 | % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on average equity * | 14.42 | % | 13.26 | % | 13.59 | % | 12.48 | % | 4.71 | % | 11.09 | % |
| Net interest margin (TE) * | 3.01 | % | 3.12 | % | 3.26 | % | 3.45 | % | 3.44 | % | 3.31 | % |
* Quarterly ratios have been annualized
(1) Average balances and yields onavailable-for-sale securities are based on historical amortized cost.
(2) Interest income includes thetax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2021 and 2020 to increase tax exemptinterest income to taxable-equivalent basis.
(3) Nonaccrual loans are includedin the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for thefiscal year ended December 31, 2020.
(4) Earnings per share for thefull fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(5) Certain acquired loans and leasesthat are past due are not on nonaccrual and are not included in nonperforming loans and leases. The risk of credit loss on theseloans has been considered by virtue of the Company's estimate of acquisition-date fair value and these loans are considered accruingas the Company primarily recognizes interest income through accretion of the difference between the carrying value of these loansand their expected cash flows.
Tompkins Financial Corporation 8-K
EXHIBIT 99.2
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753
For Immediate Release
Friday, April 30, 2021
Tompkins Financial Corporation Reports Cash Dividend
ITHACA, NY
- Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.54 per share, payable on May 17, 2021, to common shareholders of record on May 11, 2021.
Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.