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Tompkins Financial Corporation Reports Strong Third Quarter Operating Results

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ITHACA, N.Y.--(BUSINESS WIRE)--

Tompkins Financial Corporation (TMP–NYSE MKT LLC)

Tompkins Financial Corporation today released operating results and selected other financial information for the three month and nine month periods ended September 30, 2012. President and CEO, Stephen S. Romaine said, “The current quarter is the first reporting period reflecting results inclusive of the VIST Financial acquisition. We are pleased that our diluted per share earnings for the quarter, excluding merger related expenses, reflect an increase of 22.5% over the same quarter last year. We are also pleased that the merger related expenses and credit marks associated with the transaction were in line with our original projections. The VIST acquisition represents our first expansion into the Pennsylvania market and we are very excited by the opportunity to leverage the full capabilities of the Tompkins business model in this attractive market.”

THIRD QUARTER 2012 SELECTED HIGHLIGHTS:

  • Net income for the third quarter was $3.5 million, or $0.25 diluted earnings per share, compared to $7.9 million, or $0.71 diluted earnings per share for the same period in 2011. Net income for the third quarter 2012 was reduced by after-tax merger related expenses of $8.4 million.
  • Operating income, which excludes merger related expenses, was $11.9 million for the quarter, or $0.87 diluted operating earnings per share. This represents an increase of 22.5% over the $0.71 diluted operating earnings per share reported for the third quarter of 2011.
  • Return on average equity was 3.38% for the quarter, compared to 10.29% in the third quarter of 2011. Net income for the third quarter 2012 was reduced by after-tax merger related expenses of $8.4 million. Operating return on shareholders' tangible equity was 15.2% for the quarter, compared to 12.3% for the same period in 2011.
  • Total loans of $2.9 billion at September 30, 2012, were up $910.1 million from the second quarter of 2012, which included $869.2 million of loans acquired from VIST Bank. Organic loan growth was 4.5% annualized during the third quarter.
  • Total deposits of $4.0 billion at September 30, 2012, were up $1.3 million from the second quarter of 2012, which included $1.2 million of deposits acquired from VIST Bank. Organic deposit growth was 11.7% annualized during the third quarter.

NET INTEREST INCOME

The net interest margin for the third quarter of 2012 was 3.66%, an improvement of 4.0% over the second quarter of 2012, and down 1.3% from the same period in 2011. The Company reported $36.7 million in net interest income for the third quarter of 2012, which included the addition of VIST Bank acquired on August 1, 2012. During the third quarter, continued improvements in the cost of funds offset the decline in the yield on average earning assets.

NONINTEREST INCOME

Noninterest income was up $2.5 million or 20.0% over the same period in 2011. Insurance commissions and fees and card services income were up for both the quarter and year-to-date periods, primarily as a result of the addition of VIST Bank. The increase was partially offset by lower service charges on deposit accounts, which were impacted by regulatory changes implemented in the first quarter of 2012. Investment services income was down compared to the same period in 2011, mainly a result of a decision in the third quarter of 2011 to stop providing services for external broker dealer relationships. Other income includes $350,000 related to a bonus for a merchant servicing contract entered into in the third quarter of 2012.

NONINTEREST EXPENSE

Noninterest expense for the third quarter of 2012 was $46.2 million, up 92.7% from the same period last year. The increase was mainly a result of $13.8 million in merger and severance costs incurred in the third quarter of 2012. Excluding these items from the third quarter of 2012, non-interest expense increased $8.4 million or 35.0%, primarily due to the addition of VIST Bank's operating expenses.

ASSET QUALITY

Asset quality trends on originated loans show improvement when compared to the same period last year and were stable compared to prior quarter. Originated loans and leases exclude loans acquired in the VIST acquisition. The ratio of nonperforming assets to total assets of 0.88% at September 30, 2012, has improved for seven consecutive quarters and remains well below the most recent peer averages of 2.33% published as of June 30, 2012, by the Federal Reserve1.

Provision for loan and lease losses was $1.0 million for the third quarter of 2012, which is in line with the second quarter 2012 but down from $4.9 million in the third quarter of 2011.

The Company's allowance for loan and lease losses totaled $26.6 million at September 30, 2012, which represented 1.29% of total originated loans, compared to $27.6 million and 1.39% at December 31, 2011. The allowance for loan and lease losses covered 69.01% of originated nonperforming loans and leases as of September 30, 2012, up from the 66.65% at December 31, 2011.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital as a percentage of average assets at September 30, 2012, was 8.50%; and the ratio of total capital to risk-weighted assets was 12.42%.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company with $4.9 billion in assets 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, The Bank of Castile, Mahopac National Bank, VIST Bank, Tompkins Insurance Agencies, Inc., and Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

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

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

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 a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.

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

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

         

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

 
(In thousands, except share and per share data) (Unaudited) As of As of
ASSETS 09/30/2012 12/31/2011
 
Cash and noninterest bearing balances due from banks $ 89,056 $ 47,297
Interest bearing balances due from banks 53,610 2,170
Money market funds     0       100
Cash and Cash Equivalents 142,666 49,567
 
Trading securities, at fair value 17,373 19,598
Available-for-sale securities, at fair value 1,474,402 1,143,546
Held-to-maturity securities, fair value of $27,908 at September 30, 2012, and $27,255
at December 31, 2011 27,503 26,673
Originated loans and leases, net of unearned income and deferred costs and fees (2) 2,060,539 1,981,849
Less: Allowance for originated loan and lease losses 26,632 27,593
Acquired loans and leases, covered and non-covered (3)     869,211       0
Net Loans and Leases 2,903,118 1,954,256
 
Federal Home Loan Bank stock and Federal Reserve Bank stock 20,700 19,070
Bank premises and equipment, net 53,915 44,712
Corporate owned life insurance 64,364 43,044
Goodwill 95,566 43,898
Other intangible assets, net 19,293 4,096
Accrued interest and other assets     105,886       51,788
  Total Assets   $ 4,924,786     $ 3,400,248
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,187,083 1,356,870
Time 1,055,825 687,321
Noninterest bearing     794,736       616,373
Total Deposits 4,037,644 2,660,564
Federal funds purchased and securities sold under agreements to repurchase 206,996 169,090
Other borrowings, including certain amounts at fair value of $11,955 at September 30, 2012
and $12,093 at December 31, 2011 125,461 186,075
Trust preferred debentures 43,651 25,065
Other liabilities     70,084       60,311
  Total Liabilities   $ 4,483,836     $ 3,101,105
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,394,140 at September 30, 2012; and 11,159,466 at December 31, 2011 1,439 1,116
Additional paid-in capital 332,839 206,395
Retained earnings 103,150 96,445
Accumulated other comprehensive income (loss) 4,660 (3,677)
Treasury stock, at cost – 97,596 shares at September 30, 2012, and 95,105 shares
at December 31, 2011 (2,688) (2,588)
 
Total Tompkins Financial Corporation Shareholders' Equity 439,400 297,691
Noncontrolling interests     1,550       1,452
  Total Equity   $ 440,950     $ 299,143
  Total Liabilities and Equity   $ 4,924,786     $ 3,400,248
 

 

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

  Three Months Ended   Nine Months Ended

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

09/30/2012   09/30/2011 09/30/2012   09/30/2011
INTEREST AND DIVIDEND INCOME
Loans $ 34,003 $ 26,134 $ 84,709 $ 77,718
Due from banks 6 1 14 10
Federal funds sold 0 1 2 6
Trading securities 182 213 569 668
Available-for-sale securities 8,317 7,524 23,016 23,110
Held-to-maturity securities 208 249 658 944
Federal Home Loan Bank stock and Federal Reserve Bank stock     203     212     620     719
Total Interest and Dividend Income     42,919     34,334     109,588     103,175
INTEREST EXPENSE

Time certificates of deposits of $100,000 or more

1,043 817 2,497 2,534
Other deposits 2,105 2,449 5,930 7,639

Federal funds purchased and securities sold under agreements to

repurchase

1,174 1,204 3,340 3,743
Trust preferred debentures 489 405 1,296 1,197
Other borrowings     1,365     1,546     4,231     4,655
Total Interest Expense     6,176     6,421     17,294     19,768
Net Interest Income     36,743     27,913     92,294     83,407
Less: Provision for loan and lease losses     1,042     4,870     3,178     7,785
Net Interest Income After Provision for Loan and Lease Losses     35,701     23,043     89,116     75,622
NONINTEREST INCOME
Investment services income 3,614 3,425 10,504 11,090
Insurance commissions and fees 5,786 3,573 13,184 10,406
Service charges on deposit accounts 1,988 2,165 5,366 6,256
Card services income 1,504 1,271 4,353 3,785
Mark-to-market (loss) gain on trading securities (41) 55 (198) 170
Mark-to-market (loss) gain on liabilities held at fair value (27) (461) 138 (488)
Net other-than-temporary impairment losses (55) 0 (120) 0
Other income 2,116 1,998 5,151 5,217
Net (loss) gain on securities transactions     (112)     286     822     381
Total Noninterest Income     14,773     12,312     39,200     36,817
NONINTEREST EXPENSES
Salaries and wages 13,892 11,190 36,273 33,225
Pension and other employee benefits 4,826 3,374 13,248 11,063
Net occupancy expense of premises 2,472 1,721 6,070 5,321
Furniture and fixture expense 1,364 1,088 3,580 3,325
FDIC insurance 759 475 1,841 2,057
Amortization of intangible assets 426 137 684 453
Merger related expenses 13,842 0 14,814 0
Other operating expense     8,613     5,988     22,910     18,908
Total Noninterest Expenses     46,194     23,973     99,420     74,352
Income Before Income Tax Expense     4,280     11,382     28,896     38,087
Income Tax Expense     761     3,490     8,674     11,956

Net Income attributable to Noncontrolling Interests and Tompkins

Financial Corporation

    3,519     7,892     20,222     26,131
Less: Net income attributable to noncontrolling interests     32     33     98     98
Net Income Attributable to Tompkins Financial Corporation   $ 3,487   $ 7,859   $ 20,124   $ 26,033
Basic Earnings Per Share $ 0.26 $ 0.71 $ 1.63 $ 2.37
Diluted Earnings Per Share   $ 0.25   $ 0.71   $ 1.63   $ 2.36
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
    Quarter Ended Year to Date Period Ended Year to Date Period Ended
        September 30, 2012   September 30, 2012   September 30, 2011
Average     Average     Average    
Balance Average Balance Average Balance Average
(Dollar amounts in thousands)   (QTD)     Interest   Yield/Rate   (YTD)     Interest   Yield/Rate   (YTD)     Interest   Yield/Rate
ASSETS
 
Interest-earning assets
 
Interest-bearing balances due from banks $ 17,300 $ 6 0.14% $ 19,272 $ 14 0.10% $ 9,987 $ 10 0.13%
Money market funds - - 0.00% 24 - 0.00% 100 - 0.00%
Securities (4)
U.S. Government securities 1,295,822 7,585 2.33% 1,170,885 21,089 2.41% 955,022 21,119 2.96%
Trading securities 17,752 182 4.08% 18,526 569 4.10% 21,650 668 4.13%
State and municipal (5) 104,642 1,324 5.03% 91,452 3,594 5.25% 99,220 3,987 5.37%
Other securities 13,272     136   4.08%   12,286     403   4.38%   14,369     503   4.68%
Total securities 1,431,488 9,227 2.56% 1,293,149 25,655 2.65% 1,090,261 26,277 3.22%
Federal Funds Sold - - 0.00% 2,453 2 0.11% 6,238 6 0.13%
FHLBNY and FRB stock 20,095 203 4.02% 18,128 620 4.57% 18,303 719 5.25%
Loans, net of unearned income (6)
Real estate 1,923,391 25,437 5.26% 1,605,670 61,898 5.15% 1,386,097 55,738 5.38%
Commercial loans (5) 578,738 7,474 5.14% 505,460 19,783 5.23% 454,306 18,440 5.43%
Consumer loans 111,725 1,329 4.73% 78,566 3,383 5.75% 69,245 3,593 6.94%
Direct lease financing 4,527     63   5.54%   5,099     217   5.68%   7,883     348   5.90%
Total loans, net of unearned income 2,618,381     34,303   5.21%   2,194,795     85,281   5.19%   1,917,531     78,119   5.45%
Total interest-earning assets 4,087,264     43,739   4.26%   3,527,821     111,572   4.22%   3,042,420     105,131   4.62%
 
Other assets 362,760 292,523 227,910
 
Total assets 4,450,024 3,820,344 3,270,330
                                               
 
LIABILITIES & EQUITY
 
Deposits
 
Interest-bearing deposits
 
Interest bearing checking, savings, & money market 1,894,810 1,378 0.29% 1,610,261 3,250 0.27% 1,333,934 3,694 0.37%
Time deposits > $100,000 496,376 1,043 0.84% 388,258 2,497 0.86% 315,265 2,534 1.07%
Time deposits < $100,000 418,530 696 0.66% 390,267 2,649 0.91% 406,554 3,924 1.29%
Brokered time deposits < $100,000 24,811     31   0.50%   8,331     31   0.50%   2,309     21   1.22%
Total interest-bearing deposits 2,834,527 3,148 0.44% 2,397,117 8,427 0.47% 2,058,062 10,173 0.66%

Federal funds purchased & securities sold under

agreements

to repurchase 247,879 1,174 1.88% 195,553 3,340 2.28% 174,816 3,743 2.86%
Other borrowings 129,051 1,365 4.21% 139,006 4,231 4.07% 160,340 4,655 3.88%
Trust preferred debentures 37,382     489   5.20%   29,201     1,296   5.93%   25,062     1,197   6.39%
Total interest-bearing liabilities 3,248,839 6,176 0.76% 2,760,877 17,294 0.84% 2,418,280 19,768 1.09%
Noninterest bearing deposits 726,831 645,818 524,888
Accrued expenses and other liabilities 63,960 59,124 37,236
 
Total liabilities 4,039,630 3,465,819 2,980,404
 
Tompkins Financial Corporation Shareholders' equity 408,860 353,023 288,579
 
Noncontrolling interest 1,534 1,502 1,347
 
Total equity 410,394 354,525 289,926
 
Total liabilities and equity $ 4,450,024 $ 3,820,344 $ 3,270,330
Interest rate spread     3.50%     3.39%     3.53%
Net interest income/margin on earning assets 37,563 3.66% 94,278 3.57% 85,363 3.75%
 
Tax Equivalent Adjustment (820) (1,984) (1,956)
 
Net interest income per consolidated financial statements       $ 36,743           $ 92,294           $ 83,407    
 
 
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
                       
(In thousands, except per share data)   Quarter-Ended Year-Ended
  Sep-12   Jun-12   Mar-12   Dec-11   Sep-11   Dec-11
 
Period End Balance Sheet                        
Securities $ 1,519,278 $ 1,228,143 $ 1,285,685 $ 1,189,817 $ 1,130,769 $ 1,189,817

Originated loans and leases, net of unearned income

and deferred costs and fees (2)

  2,060,539   2,019,681   1,977,569   1,981,849   1,951,598   1,981,849
Allowance for originated loan and lease losses   26,632   26,865   26,948   27,593   27,878   27,593
Acquired loans and leases (3)   869,211   0   0   0   0   0
Total assets   4,924,786   3,482,669   3,546,694   3,400,248   3,359,017   3,400,248
Total deposits   4,037,644   2,765,093   2,859,436   2,660,564   2,675,674   2,660,564

Federal funds purchased and securities sold under

agreements to repurchase

  206,996   161,662   169,456   169,090   171,943   169,090
Other borrowings   125,461   121,934   132,884   186,075   138,001   186,075
Trust preferred debentures   43,651   25,067   25,066   25,065   25,063   25,065
Shareholders' equity   440,950   353,700   305,967   299,143   309,335   299,143
 
Average Balance Sheet                        
Average earning assets $ 4,087,264 $ 3,278,519 $ 3,211,533 $ 3,131,051 $ 3,050,346 $ 3,064,761
Average assets   4,450,024   3,539,170   3,464,917   3,368,135   3,286,159   3,294,982
Average interest-bearing liabilities   3,248,839   2,521,285   2,507,146   2,435,326   2,391,576   2,422,577
Average equity   410,394   349,021   303,546   307,539   303,861   294,620
 
Share data                        
Weighted average shares outstanding (basic)   13,580,771   12,146,622   11,103,192   11,074,330   11,049,831   11,002,106
Weighted average shares outstanding (diluted)   13,630,464   12,166,417   11,147,489   11,104,623   11,124,331   11,035,384
Period-end shares outstanding   14,358,230   12,223,790   11,197,370   11,123,556   11,122,886   11,123,556
Book value per share   30.72   28.94   27.32   26.89   27.81   26.89
 
Income Statement                        
Net interest income $ 36,743 $ 28,110 $ 27,441 $ 27,999 $ 27,913 $ 111,406
Provision for loan/lease losses   1,042   1,011   1,125   1,160   4,870   8,945
Noninterest income   14,773   12,766   11,661   11,197   12,312   48,014
Noninterest expense   46,194   26,855   26,371   24,200   23,973   98,552
Income tax expense   761   4,151   3,762   4,417   3,490   16,373

Net income attributable to Tompkins Financial

Corporation

  3,487   8,826   7,811   9,387   7,859   35,419
Noncontrolling interests   32   33   33   32   33   131
Basic earnings per share (9) $ 0.26 $ 0.72 $ 0.70 $ 0.84 $ 0.71 $ 3.21
Diluted earnings per share (9) $ 0.25 $ 0.72 $ 0.70 $ 0.84 $ 0.71 $ 3.20
 
Asset Quality                        
Nonperforming Assets                        
Nonaccrual loans and leases (7) $ 36,996 $ 36,749 $ 38,455 $ 39,588 $ 40,419 $ 39,588
Loans and leases 90 days past due and accruing (7)   126   321   1,552   1,380   379   1,380
Troubled debt restructurings not included above (7)   1,468   1,445   423   423   441   428
Total nonperforming loans and leases (7)   38,590   38,515   40,430   41,391   41,239   41,396
OREO (8)   4,675   2,161   1,906   1,334   1,632   1,334
Total nonperforming assets   43,265   40,676   42,336   42,725   42,871   42,730
 
 
     
  Quarter-Ended Year-Ended
Delinquency   Sep-12   Jun-12   Mar-12   Dec-11   Sep-11   Dec-11
Originated loan and lease portfolio                        
Loans and leases 30-89 days past due (7) $ 9,412 $ 10,149 $ 12,080 $ 13,171 $ 9,916 $ 13,171
Loans and leases 90 days past due (7)   126   321   1,552   1,380   379   1,380
Nonaccrual loans and leases (7)   36,996   36,749   38,455   39,587   40,419   39,587
Total past due and nonaccrual originated loans (7)   46,534   47,219   52,087   54,138   50,714   54,138
Acquired loan and lease portfolio                        
Covered loans and leases 30-89 days past due (3)   758   0   0   0   0   0

Covered loans and leases 90 days or more past due

(3)

  2,837   0   0   0   0   0
Non-covered loans and leases 30-89 days past due (3)   5,848   0   0   0   0   0

Non-covered loans and leases 90 days or more past

due (3)

  19,339   0   0   0   0   0

Total past due and nonaccrual acquired loans and

leases

  28,782   0   0   0   0   0
                         
                         
Originated loan and lease portfolio                        
Balance at beginning of period $ 26,865 $ 26,948 $ 27,593 $ 27,878 $ 28,361 $ 27,832
Provision for loan and lease losses   1,042   1,011   1,125   1,160   4,870   8,945
Net loan and lease charge-offs   1,275   1,094   1,770   1,445   5,353   9,184
Allowance for loan and lease losses 26,632 26,865 26,948 27,593 27,878 27,593
(originated loan portfolio)            
Allowance for loan and lease losses 0 0 0 0 0 0
(acquired loan portfolio)            
Total allowance for loan and lease losses   26,632   26,865   26,948   27,593   27,878   27,593
 
Loan Classifications                        
Originated portfolio                        
Special Mention $ 56,906 $ 63,652 $ 62,649 $ 52,156 $ 66,697 $ 52,156
Substandard   54,197   58,185   58,272   72,920   73,313   72,920
Doubtful   494   588   1,344   1,494   509   1,494
Acquired portfolio                        
Special Mention   17,743   0   0   0   0   0
Substandard   39,860   0   0   0   0   0
 
 
RATIO ANALYSIS
Credit Quality                        

Nonperforming originated loans and leases/total

originated loans and leases (2)(7)

  1.87%   1.91%   2.04%   2.09%   2.11%   2.09%
Nonperforming assets/total assets   0.88%   1.17%   1.19%   1.26%   1.28%   1.26%

Allowance for loan and lease losses/total originated

loans and leases

  1.29%   1.33%   1.36%   1.39%   1.43%   1.39%
Allowance/nonperforming loans and leases (7)   69.01%   69.75%   66.65%   66.65%   67.60%   66.65%

Net loan and lease losses (annualized)/total average

loans and leases

  0.19%   0.22%   0.36%   0.29%   1.10%   0.48%

Net loan and lease losses on originated loans and

leases (annualized)/total average originated loans and

leases (2)

  0.25%   0.22%   0.36%   0.29%   1.10%   0.48%
 
 

 

 
  Quarter-Ended Year-Ended
Capital Adequacy (period-end)   Sep-12   Jun-12   Mar-12   Dec-11   Sep-11   Dec-11
Tier I capital / average assets   8.50%   9.53%   8.46%   8.51%   8.55%   8.51%
Total capital / risk-weighted assets   12.42%   16.22%   14.37%   14.17%   14.11%   14.17%
 
Profitability                        
Return on average assets *   0.31%   1.00%   0.91%   1.11%   0.95%   1.07%
Return on average equity *   3.38%   10.17%   10.35%   12.07%   10.29%   12.02%
Net interest margin (TE) *   3.66%   3.52%   3.51%   3.62%   3.71%   3.72%
* Quarterly ratios have been annualized
 
 
Non-GAAP Disclosure                        
Reported net income (GAAP) $ 3,487 $ 8,826 $ 7,811 $ 9,387 $ 7,859 $ 35,419
Adjustments (net of tax):                        
Accrual adjustment VISA   0   (243)   0   0   0   0
Merger related expenses   8,424   703   75   0   0   0
Subtotal adjustments   8,424   460   75   0   0   0
Net operating income (Non-GAAP)   11,911   9,286   7,886   9,387   7,859   35,419
Weighted average shares outstanding (diluted)   13,630,464   12,166,417   11,147,489   11,104,623   11,124,331   11,035,384
Adjusted diluted earnings per share $ 0.87 $ 0.76 $ 0.71 $ 0.84 $ 0.71 $ 3.21
 
Non-GAAP Disclosure                        
Reported net income (GAAP) $ 3,487 $ 8,826 $ 7,811 $ 9,387 $ 7,859 $ 35,419
Merger related expenses (net of tax)   8,424   703   75   0   0   0
Net operating income (Non-GAAP) $ 11,911 $ 9,529 $ 7,886 $ 9,387 $ 7,859 $ 35,419
Amortization of intangibles, (net of tax)   256   74   80   81   82   353
Adjusted net operating income   12,167   9,603   7,966   9,468   7,941   35,772
Average total shareholders' equity   410,394   349,021   303,546   307,539   303,861   294,620
Less: Average goodwill and intangibles   92,789   48,665   47,922   48,195   48,433   47,043
Average tangible shareholders' equity   317,605   300,356   255,624   259,344   255,428   247,577

Adjusted operating return on shareholders'

tangible equity (annualized)

  15.24%   12.86%   12.53%   14.52%   12.37%   14.45%
 
 
Non-GAAP Disclosure                        
Total shareholders' equity (GAAP) $ 440,950 $ 353,700 $ 305,967 $ 299,143 $ 309,335 $ 299,143
Less: goodwill and intangibles   114,920   48,652   48,569   47,994   48,276   47,994
Tangible shareholders' equity   326,030   305,048   257,398   251,149   261,059   251,149
Ending shares outstanding   14,358,230   12,223,790   11,197,370   11,123,556   11,122,886   11,123,556
Tangible book value per share (Non-GAAP)   22.71   24.96   22.99   22.58   23.47   22.58
 
 
   
Non-GAAP Disclosure Year-to-date period ended
  Sep-12 Sep-11
Reported net income (GAAP) $ 20,124 $ 26,033
Adjustments (net of tax):        
Accrual adjustment VISA   (243)   0
Merger related expenses   9,202   0
Subtotal adjustments   8,959   0
Net operating income (Non-GAAP)   29,083   26,033
Weighted average shares outstanding (diluted)   12,319,541   11,028,220
Adjusted diluted earnings per share $ 2.36 $ 2.36

 

(1) Federal Reserve peer ratio as of June 30, 2012, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans"
(3) "Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance of loan losses recognized subsequent to acquisition. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2011.
(7) Acquired loans and leases are not included in nonperforming loans because the accretion method is used for all acquired loan pools.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.







Tompkins Financial Corporation
Stephen S. Romaine, President & CEO
Francis M. Fetsko, CFO
607-273-3210


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