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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 26, 2024

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.)
118 E. Seneca Street,
PO Box 460,
Ithaca
New York
14851
(Address of Principal executive offices)  (Zip Code)
Registrant’s telephone number, 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 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 not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition

        On January 26, 2024, Tompkins Financial Corporation, (the “Company”) issued a press release announcing its earnings for the calendar quarter ended December 31, 2023. 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.

The information furnished under Items 2.02 and Item 9.01 of this Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2 to this Report on Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under the Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

Item 8.01 Other Events

On January 25, 2024, the Company's Board of Directors declared a dividend of $0.60 per share, payable on February 16, 2024, to common shareholders of record on February 9, 2024. A copy of the press release, is attached to this Report on Form 8-K as Exhibit 99.2.
        
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 January 26, 2024
99.2    Press Release of Tompkins Financial Corporation dated January 26, 2024
104    Cover 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: January 26, 2024         /s/ Stephen S. Romaine    
             Stephen S. Romaine
             President and CEO

EX-99.1 2 q42023pressrelease.htm EX-99.1 Document


image.jpg


For more information contact:
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753

For Immediate Release
Friday, January 26, 2024

Tompkins Financial Corporation Reports Fourth Quarter Financial Results

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.05 for the fourth quarter of 2023, down 22.8% compared to the fourth quarter of 2022. Net income for the fourth quarter of 2023 was $15.0 million, down $4.5 million or 23.3% compared to the $19.5 million reported for the fourth quarter of 2022. Contributing to the lower quarterly results were increased funding costs and increased operating expenses, which included costs related to three branch closures during the fourth quarter of 2023 as well as personnel-related charges.

For the year ended December 31, 2023, diluted earnings per share of $0.66 were down 88.8% compared to the year ended December 31, 2022. Net income for 2023 was $9.5 million, a decrease of $75.5 million compared to the year ended December 31, 2022. Significant contributors to the year-over-year decrease in net income included a previously announced after-tax loss of $52.9 million, or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities, increased funding costs and an increase in operating expenses. The sale of securities and subsequent reinvestment in the second and third quarters of 2023 is favorably impacting securities revenue as the securities sold had an average yield of 0.86%, while the proceeds of the sale were largely reinvested into securities with an estimated yield of approximately 5.09%. Average yields on securities for the fourth quarter of 2023 were 2.33%, compared to 1.59% for the third quarter of 2023, and 1.44% for the fourth quarter of 2022.

Tompkins President and CEO, Stephen Romaine, commented, "In the fourth quarter we continued to execute on strategic initiatives and are pleased to announce our expanded presence in Syracuse with the grand opening of our City Center office. For the quarter we saw positive momentum with our net interest margin expanding, strong quarterly loan growth driving full year loan growth of 6.4%, signs of stabilization in our deposit base and growth in our noninterest related revenue.



During the quarter we also recognized non-recurring expenses relating to three branch closures and other personnel-related expenses intended to help offset future expense growth. While the economic environment remains challenging for the industry we look forward to 2024 with our strong capital and liquidity position to continue to drive growth of quality customer relationships."

SELECTED HIGHLIGHTS FOR THE PERIOD:
•Net interest margin for the fourth quarter of 2023 expanded to 2.82%, compared to 2.75% for the third quarter of 2023.
•Total loans at December 31, 2023 were up $171.1 million, or 3.2% (12.6% on an annualized basis), compared to the immediate prior quarter, and up $337.0 million, or 6.4%, from December 31, 2022.
•Total deposits at December 31, 2023 were $6.4 billion, down $223.6 million, or 3.4% (13.5% on an annualized basis), from September 30, 2023, and down $202.5 million, or 3.1%, from December 31, 2022.
•Loan to deposit ratio was 87.6%, compared to 82.1% for the immediate prior quarter.
•Regulatory Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023 and 9.34% at December 31, 2022.

NET INTEREST INCOME
Net interest income was $52.4 million for the fourth quarter of 2023, up from $51.0 million for the third quarter of 2023 and down from $57.3 million for the fourth quarter of 2022. Net interest margin was 2.82% for the fourth quarter of 2023, compared to 2.75% reported for the third quarter of 2023 and 3.02% reported for the fourth quarter of 2022. The increase in net interest income and net interest margin during the fourth quarter of this year compared to the third quarter of 2023 was primarily due to securities purchased in the second and third quarter of 2023 yielding higher interest rates compared to securities sold during the same periods. The increase in securities yields was partially offset by the reversal of $1.0 million of accrued interest during the fourth quarter related to loans that moved to nonaccrual status during the quarter, as described further below under the heading Asset Quality. The decreases in net interest income and net interest margin compared to the fourth quarter of last year were primarily attributable to increased interest costs on interest-bearing liabilities outpacing increased interest income on interest earning assets due to the higher interest rate environment.

For the year ended December 31, 2023, net interest income was $209.5 million, down $20.8 million, or 9.0%, when compared to the same period in 2022.

Average loans for the quarter ended December 31, 2023 were up $101.5 million, or 1.9%, from the third quarter of 2023, and were up $277.0 million, or 5.3%, compared to the quarter ended December 31, 2022. The increase in average loans over both prior periods was mainly in the commercial real estate portfolio. The average yield on interest-earning assets for the quarter ended December 31, 2023 was 4.3%, which was up from 4.1% for the quarter ended September 30, 2023, and up from 3.6% for the quarter ended December 31, 2022.




Average total deposits for the fourth quarter of 2023 were up $58.4 million, or 0.9%, compared to the third quarter of 2023, while period end balances were down $223.6 million compared to the third quarter of 2023 driven by seasonal deposit trends. Average deposits for the quarter were down $227.8 million, or 3.4%, compared to the same period in 2022. The decrease compared to the prior year was largely driven by inflation and persistent rate competition for deposits due to the current interest rate environment and tightening monetary policy. The cost of interest-bearing deposits increased to 2.04% for the fourth quarter of 2023, compared to 1.74% for the third quarter of 2023, and 0.69% for the fourth quarter of 2022. The cost of interest-bearing deposits for the fourth quarter of 2023 increased 135 basis points compared to the fourth quarter of 2022, and 123 basis points for the year ended December 31, 2023 compared to the same period in 2022. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2023 was 29.6% compared to 31.0% for the third quarter of 2023, and 30.8% for the year ended December 31, 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2023 of 2.25% represents an increase of 27 basis points over the third quarter of 2023, and an increase of 141 basis points over the same period in 2022.

NONINTEREST INCOME
Noninterest income of $18.9 million for the fourth quarter of 2023 was up 2.7% compared to the same period in 2022. The increase was mainly due to gains on securities transactions of $46,000 compared to losses on securities transactions of $455,000, and increases in fee-based revenues which include insurance commissions and fees, up $143,000, wealth management fees, up $181,000 and card services income, up $68,000.

Noninterest income for the year ended December 31, 2023 was $10.2 million, which represents a decrease in noninterest income of $67.7 million compared to the same period in 2022. The decrease in noninterest income was largely due to the previously noted sales of available-for-sale debt securities, mainly in the third quarter of 2023, which resulted in the recognition of a pre-tax loss of $70.0 million for the year ended December 31, 2023. Fee-based revenues, including insurance commissions and fees, wealth management fees, service charges on deposit accounts and card services income, for the year ended December 31, 2023 were collectively up $1.0 million, or 1.4%, over the same period in 2022.

NONINTEREST EXPENSE
Noninterest expense was $51.3 million for the fourth quarter of 2023, which was up $1.1 million, or 2.2%, over the fourth quarter of 2022. The increases were mainly in premises and furniture and fixtures, up $799,000, and other operating expenses, up $1.7 million; partially offset by lower salaries and wages. The increase in premises and furniture and fixtures was mainly due to $720,000 of expense related to branch closures. Contributing to the increase in other operating expense were: FDIC expense, up $723,000; technology, up $434,000; expenses related to the Company's retirement plans, up $428,000; charitable contributions and donations, up $315,000; and accrual for New York State minimum tax, up $207,000. Salaries and wages included $638,000 of personnel-related charges, which were more than offset by lower incentive related accruals.

For the year-to-date period, noninterest expense of $203.3 million was up $7.5 million, or 3.9%, from the same period in 2022. The increase in noninterest expense for the year-ended December 31, 2023 over the same period in 2022 was mainly in employee benefits and other noninterest expense.



The increase in employee benefits was mainly in health insurance, which was up $1.8 million. Salaries and wages were down as annual merit increases were offset by lower incentive related accruals. Contributing to the increases in other expenses were the following: FDIC insurance, up $1.5 million; New York State minimum tax expense, up $830,000; professional fees, up $604,000; and charitable donations, up $317,000. Premises and furniture and fixtures expenses were up over prior year mainly as a result of expense related to branch closures of $879,000.

INCOME TAX EXPENSE
The provision for income tax expense of $3.1 million for an effective rate of 17.2% for the fourth quarter of 2023, compared to tax expense of $4.5 million and an effective rate of 18.6% for the same quarter in 2022. The fourth quarter 2023 included the impact of surrendering certain separate account BOLI policies, which added $1.8 million to tax expense for the quarter. For the year-ended 2023, the provision for income tax expense of $2.5 million for an effective rate of 20.6% compared to tax expense of $24.6 million and an effective rate of 22.4% for the same period in 2022. The decrease in income tax expense between comparable periods reflects the decrease in pre-tax income, due primarily to the realized losses on the sale of certain available-for-sale securities.

ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans and leases at December 31, 2023, up from 0.91% at September 30, 2023, and up from 0.87% at December 31, 2022. The ratio of the allowance to total nonperforming loans and leases was 82.84% at December 31, 2023, compared to 156.96% at September 30, 2023 and 139.86% at December 31, 2022. The decrease in the ratio compared to prior periods was due to the increase in nonperforming loans and leases discussed in more detail below.

Provision for credit losses for the fourth quarter of 2023 was $1.8 million compared to $1.4 million for the same period in 2022. Provision for credit losses for the year ended December 31, 2023 was $4.3 million, compared to $2.8 million for the year ended December 31, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by loan growth, economic forecasts, and changes in asset quality. Net charge-offs for the fourth quarter of 2023 were $410,000 compared to net charge-offs of $190,000 reported for the same period in 2022.

Nonperforming assets represented 0.80% of total assets at December 31, 2023, up from 0.41% reported at September 30, 2023 and 0.43% at December 31, 2022. At December 31, 2023, nonperforming loans and leases totaled $62.3 million, compared to $31.4 million at September 30, 2023 and $32.8 million at December 31, 2022. The increase in nonperforming loans at quarter-end December 31, 2023, was mainly due to the addition of one relationship with two commercial real estate properties in the hospitality portfolio totaling approximately $33.8 million. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of December 31, 2023. These loans were included in loans past due 30-89 days and accruing at the end of third quarter of 2023. Loans past due 30-89 days and accruing as a percentage of total loans decreased from 0.75% at the end of the third quarter of 2023 to 0.08% at the end of the fourth quarter of 2023.




Special Mention and Substandard loans and leases totaled $123.1 million at December 31, 2023, reflecting an increase from the $122.9 million reported at September 30, 2023, and $98.3 million reported at December 31, 2022.

CAPITAL POSITION
Capital ratios at December 31, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.36% at December 31, 2023, compared to 13.46% at September 30, 2023, and 14.42% at December 31, 2022. The ratio of Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023, and 9.34% at December 31, 2022.

LIQUIDITY POSITION
The Company's liquidity position at December 31, 2023 was stable and consistent with the immediately prior quarter. 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 Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of $1.4 billion, or 18.3% of total assets at December 31, 2023. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At December 31, 2023 the Company had an available borrowing capacity at the FHLB of $642 million. 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 December 31, 2023 the available borrowing capacity with the Federal Reserve Bank was $92.6 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at December 31, 2023, the Company maintained $687.0 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.



Examples of forward-looking statements may include statements regarding the expected increases in revenue attributable to the reinvestment of proceeds from the sale of available-for-sale debt securities in securities with higher estimated yields and the sufficiency of existing collateral to cover exposure related to nonperforming loans. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual 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 other sources of liquidity; GDP growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; technological developments and changes; cybersecurity incidents and threats, the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact of national and global events, including the response to bank failures, the wars in Ukraine and Israel, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. The Company does not undertake any obligation to update its forward-looking statements.



TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) As of As of
ASSETS 12/31/2023 12/31/2022
(Audited)
Cash and noninterest bearing balances due from banks $ 67,212  $ 18,572 
Interest bearing balances due from banks 12,330  59,265 
Cash and Cash Equivalents 79,542  77,837 
Available-for-sale debt securities, at fair value (amortized cost of $1,548,482 at December 31, 2023 and $1,831,791 at December 31, 2022) 1,416,650  1,594,967 
Held-to-maturity debt securities, at amortized cost (fair value of $267,455 at December 31, 2023 and $261,692 at December 31, 2022) 312,401  312,344 
Equity securities, at fair value 787  777 
Total loans and leases, net of unearned income and deferred costs and fees 5,605,935  5,268,911 
Less: Allowance for credit losses 51,584  45,934 
Net Loans and Leases 5,554,351  5,222,977 
Federal Home Loan Bank and other stock 33,719  17,720 
Bank premises and equipment, net 79,687  82,140 
Corporate owned life insurance 67,884  85,556 
Goodwill 92,602  92,602 
Other intangible assets, net 2,327  2,708 
Accrued interest and other assets 179,799  181,058 
Total Assets $ 7,819,749  $ 7,670,686 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 3,484,878  3,820,739 
Time 998,013  631,411 
Noninterest bearing 1,916,956  2,150,145 
Total Deposits 6,399,847  6,602,295 
Federal funds purchased and securities sold under agreements to repurchase 50,996  56,278 
Other borrowings 602,100  291,300 
Other liabilities 96,872  103,423 
Total Liabilities $ 7,149,815  $ 7,053,296 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,441,830 at December 31, 2023; and 14,555,741 at December 31, 2022 1,444  1,456 
Additional paid-in capital 297,183  302,763 
Retained earnings 501,510  526,727 
Accumulated other comprehensive loss (125,005) (208,689)
Treasury stock, at cost – 132,097 shares at December 31, 2023, and 128,749 shares at December 31, 2022 (6,610) (6,279)
Total Tompkins Financial Corporation Shareholders’ Equity 668,522  615,978 
Noncontrolling interests 1,412  1,412 
Total Equity $ 669,934  $ 617,390 
Total Liabilities and Equity $ 7,819,749  $ 7,670,686 



TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited) Three Months Ended Year Ended
12/31/2023 12/31/2022 12/31/2023 12/31/2022
INTEREST AND DIVIDEND INCOME
Loans $ 69,035  $ 58,930  $ 260,434  $ 217,607 
Due from banks 227  181  674  371 
Available-for-sale debt securities 9,717  6,939  29,677  27,929 
Held-to-maturity debt securities 1,222  1,221  4,876  4,771 
Federal Home Loan Bank and other stock 584  254  1,697  646 
Total Interest and Dividend Income 80,785  $ 67,525  $ 297,358  $ 251,324 
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 3,949  909  11,421  2,298 
Other deposits 19,526  6,973  59,387  13,870 
Federal funds purchased and securities sold under agreements to repurchase 14  14  58  60 
Other borrowings 4,937  2,335  16,978  4,815 
Total Interest Expense 28,426  10,231  87,844  21,043 
Net Interest Income 52,359  57,294  209,514  230,281 
Less: Provision for credit loss expense 1,761  1,397  4,339  2,789 
Net Interest Income After Credit for Credit Loss Expense 50,598  55,897  205,175  227,492 
NONINTEREST INCOME
Insurance commissions and fees 7,773  7,630  37,351  36,201 
Wealth management fees 4,422  4,241  17,951  18,091 
Service charges on deposit accounts 1,773  1,913  6,913  7,365 
Card services income 2,859  2,791  11,488  11,024 
Other income 1,977  2,231  6,511  5,925 
Net gain (loss) on securities transactions 46  (455) (69,973) (634)
Total Noninterest Income 18,850  18,351  10,241  77,972 
NONINTEREST EXPENSE
Salaries and wages 23,710  25,249  97,370  98,261 
Other employee benefits 6,626  6,342  27,333  24,969 
Net occupancy expense of premises 3,544  3,163  13,278  13,093 
Furniture and fixture expense 2,425  2,007  8,663  8,058 
Amortization of intangible assets 84  218  334  873 
Other operating expense 14,911  13,211  56,314  50,497 
Total Noninterest Expenses 51,300  50,190  203,292  195,751 
Income Before Income Tax Expense 18,148  24,058  12,124  109,713 
Income Tax Expense 3,114  4,478  2,495  24,557 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 15,034  19,580  9,629  85,156 
Less: Net Income Attributable to Noncontrolling Interests 31  32  124  126 
Net Income Attributable to Tompkins Financial Corporation $ 15,003  19,548  9,505  85,030 
Basic Earnings Per Share $ 1.06  $ 1.36  $ 0.66  $ 5.92 
Diluted Earnings Per Share $ 1.05  $ 1.36  $ 0.66  $ 5.89 
  




Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter Ended Quarter Ended
December 31, 2023 December 31, 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 $ 14,351  $ 227  6.28  % $ 58,488  $ 181  1.23  %
Securities (1)
U.S. Government securities 1,789,043  10,411  2.31  % 2,186,858  7,627  1.38  %
State and municipal (2) 90,070  574  2.53  % 94,377  608  2.56  %
Other securities (2) 3,242  60  7.37  % 3,270  47  5.68  %
Total securities 1,882,355  11,045  2.33  % 2,284,505  8,282  1.44  %
FHLBNY and FRB stock 24,555  584  9.44  % 15,942  255  6.33  %
Total loans and leases, net of unearned income (2)(3) 5,486,715  69,197  5.00  % 5,209,721  59,140  4.50  %
Total interest-earning assets 7,407,976  81,053  4.34  % 7,568,656  67,858  3.56  %
Other assets 259,006  152,679 
Total assets $ 7,666,982  $ 7,721,335 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market $ 3,643,919  $ 14,915  1.62  % $ 3,905,570  $ 5,888  0.60  %
Time deposits 925,790  8,560  3.67  % 615,493  1,994  1.28  %
Total interest-bearing deposits 4,569,709  23,475  2.04  % 4,521,063  7,882  0.69  %
Federal funds purchased & securities sold under agreements to repurchase 51,903  14  0.10  % 55,701  14  0.10  %
Other borrowings 398,932  4,937  4.91  % 251,797  2,335  3.68  %
Total interest-bearing liabilities 5,020,544  28,426  2.25  % 4,828,561  10,231  0.84  %
Noninterest bearing deposits 1,920,510  2,196,992 
Accrued expenses and other liabilities 103,648  115,063 
Total liabilities 7,044,702  7,140,615 
Tompkins Financial Corporation Shareholders’ equity 620,789  579,223 
Noncontrolling interest 1,491  1,497 
Total equity 622,280  580,720 
Total liabilities and equity $ 7,666,982  $ 7,721,335 
Interest rate spread 2.09  % 2.72  %
Net interest income/margin on earning assets 52,627  2.82  % 57,627  3.02  %
Tax Equivalent Adjustment (268) (333)
Net interest income per consolidated financial statements $ 52,359  $ 57,294 




Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Year to Date Period Ended Year to Date Period Ended
December 31, 2023 December 31, 2022
Average Average
Balance Average Balance Average
(Dollar amounts in thousands) (YTD) Interest Yield/Rate (YTD) Interest Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 13,064  $ 674  5.16  % $ 85,788  $ 371  0.43  %
Securities (1)
U.S. Government securities 1,920,678  32,433  1.69  % 2,265,226  30,587  1.35  %
State and municipal (2) 91,407  2,338  2.56  % 97,283  2,490  2.56  %
Other securities (2) 3,272  229  6.99  % 3,329  135  4.06  %
Total securities 2,015,357  35,000  1.74  % 2,365,838  33,212  1.40  %
FHLBNY and FRB stock 22,284  1,697  7.63  % 13,354  646  4.84  %
Total loans and leases, net of unearned income (2)(3) 5,357,699  261,144  4.87  % 5,142,098  218,494  4.25  %
Total interest-earning assets 7,408,404  298,515  4.03  % 7,607,078  252,723  3.32  %
Other assets 233,268  221,442 
Total assets $ 7,641,672  $ 7,828,520 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market $ 3,697,780  $ 46,820  1.27  % $ 4,029,008  $ 10,389  0.26  %
Time deposits 793,709  23,988  3.02  % 611,708  5,779  0.94  %
Total interest-bearing deposits 4,491,489  70,808  1.58  % 4,640,716  16,168  0.35  %
Federal funds purchased & securities sold under agreements to repurchase 55,773  58  0.10  % 57,126  60  0.10  %
Other borrowings 363,530  16,978  4.67  % 195,110  4,815  2.47  %
Total interest-bearing liabilities 4,910,792  87,844  1.79  % 4,892,952  21,043  0.43  %
Noninterest bearing deposits 1,994,861  2,186,720 
Accrued expenses and other liabilities 101,287  107,122 
Total liabilities 7,006,940  7,186,794 
Tompkins Financial Corporation Shareholders’ equity 633,267  640,258 
Noncontrolling interest 1,465  1,468 
Total equity 634,732  641,726 
Total liabilities and equity $ 7,641,672  $ 7,828,520 
Interest rate spread 2.24  % 2.89  %
Net interest income/margin on earning assets 210,671  2.84  % 231,680  3.05  %
Tax Equivalent Adjustment (1,157) (1,399)
Net interest income per consolidated financial statements $ 209,514  $ 230,281 



Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-Ended Year-Ended
Period End Balance Sheet Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 Dec-23
Securities $ 1,729,838  $ 1,701,636  $ 1,781,150  $ 1,899,001  $ 1,908,088  $ 1,729,838 
Total Loans 5,605,935  5,434,860  5,352,365  5,273,671  5,268,911  5,605,935 
Allowance for credit losses 51,584  49,336  48,545  46,099  45,934  51,584 
Total assets 7,819,749  7,691,162  7,626,238  7,644,371  7,670,686  7,819,749 
Total deposits 6,399,847  6,623,436  6,454,651  6,509,009  6,602,295  6,399,847 
Federal funds purchased and securities sold under agreements to repurchase 50,996  56,120  50,483  63,491  56,278  50,996 
Other borrowings 602,100  296,800  387,100  327,000  291,300  602,100 
Total common equity 668,522  610,851  634,967  648,322  615,978  668,522 
Total equity 669,934  612,356  636,441  649,765  617,390  669,934 

Average Balance Sheet
Average earning assets $ 7,407,976  $ 7,405,434  $ 7,409,714  $ 7,410,553  $ 7,568,656  $ 7,408,404 
Average assets 7,666,982  7,629,876  7,635,800  7,633,793  7,721,335  7,641,672 
Average interest-bearing liabilities 5,020,544  4,902,930  4,883,026  4,834,712  4,828,561  4,910,792 
Average equity 622,280  634,980  650,554  631,208  580,720  634,732 
Share data
Weighted average shares outstanding (basic) 14,194,503  14,185,763  14,314,133  14,326,595  14,308,323  14,254,661 
Weighted average shares outstanding (diluted) 14,246,024  14,224,748  14,346,787  14,389,673  14,385,884  14,301,221 
Period-end shares outstanding 14,405,920  14,350,177  14,405,503  14,519,748  14,519,831  14,405,920 
Common equity book value per share $ 46.41  $ 42.57  $ 44.08  $ 44.65  $ 42.42  $ 46.41 
Tangible book value per share (Non-GAAP)** $ 39.88  $ 36.01  $ 37.54  $ 38.16  $ 35.93  $ 39.88 
**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP.
Income Statement
Net interest income $ 52,359  $ 51,013  $ 51,896  $ 54,246  $ 57,294  $ 209,514 
Provision (credit) for credit loss expense (5) 1,761  1,150  2,253  (825) 1,397  4,339 
Noninterest income 18,850  (41,624) 12,615  20,400  18,351  10,241 
Noninterest expense (5) 51,300  49,866  51,968  50,158  50,190  203,292 
Income tax expense/(benefit) 3,114  (8,304) 1,784  5,901  4,478  2,495 
Net (loss)/income attributable to Tompkins Financial Corporation 15,003  (33,354) 8,475  19,381  19,548  9,505 
Noncontrolling interests 31  31  31  31  32  124 
Basic earnings (loss) per share (4) 1.06  (2.35) 0.59  1.35  1.36  0.66 
Diluted earnings (loss) per share (4) 1.05  (2.35) 0.59  1.35  1.36  0.66 
Nonperforming Assets
Nonaccrual loans and leases $ 62,165  $ 31,381  $ 31,333  $ 28,424  $ 28,289  $ 62,165 
Loans and leases 90 days past due and accruing 101  52  34  13  25  101 
Performing troubled debt restructuring* 4,530 
Total nonperforming loans and leases 62,266  31,433  31,367  28,437  32,844  62,266 
OREO 131  36  36  152  131 
Total nonperforming assets $ 62,397  $ 31,433  $ 31,403  $ 28,473  $ 32,996  $ 62,397 
*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 Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 Dec-23
Loans and leases 30-89 days past due and
accruing $ 4,210  $ 40,893  $ 20,255  $ 5,894  $ 3,172  $ 4,210 
Loans and leases 90 days past due and accruing 101  52  34  13  25  101 
Total loans and leases past due and accruing 4,311  40,945  20,289  5,907  3,197  4,311 

Allowance for Credit Losses
Balance at beginning of period $ 49,336  $ 48,545  $ 46,099  $ 45,934  $ 44,772  $ 45,934 
Impact of adopting ASC 326 64  64 
Provision (credit) for credit losses 2,658  968  2,419  (1,180) 1,352  $ 4,865 
Net loan and lease (recoveries) charge-offs 410  177  (27) (1,281) 190  $ (721)
Allowance for credit losses at end of period $ 51,584  $ 49,336  $ 48,545  $ 46,099  $ 45,934  $ 51,584 
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period $ 3,167  $ 2,985  $ 3,151  $ 2,796  $ 2,751  $ 2,796 
(Credit) provision for credit losses (897) 182  (166) 355  45  $ (526)
Allowance for credit losses at end of period $ 2,270  $ 3,167  $ 2,985  $ 3,151  $ 2,796  $ 2,270 
Loan Classification - Total Portfolio
Special Mention $ 50,368  $ 65,993  $ 56,305  $ 39,255  $ 49,752  $ 50,368 
Substandard 72,717  56,947  61,820  46,315  48,537  72,717 

Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases 1.11  % 0.58  % 0.59  % 0.54  % 0.62  % 1.11  %
Nonperforming assets/total assets 0.80  % 0.41  % 0.41  % 0.37  % 0.43  % 0.80  %
Allowance for credit losses/total loans and leases 0.92  % 0.91  % 0.91  % 0.87  % 0.87  % 0.92  %
Allowance/nonperforming loans and leases 82.84  % 156.96  % 154.76  % 162.11  % 139.86  % 82.84  %
Net loan and lease losses (recoveries) annualized/total average loans and leases 0.03  % 0.01  % 0.00  % (0.10) % 0.01  % (0.01) %
Capital Adequacy
Tier 1 Capital (to average assets) 9.08  % 9.01  % 9.57  % 9.63  % 9.34  % 9.08  %
Total Capital (to risk-weighted assets) 13.36  % 13.46  % 14.48  % 14.62  % 14.42  % 13.36  %
Profitability (period-end)
Return on average assets * 0.78  % (1.73) % 0.45  % 1.03  % 1.00  % 0.12  %
Return on average equity * 9.56  % (20.84) % 5.22  % 12.45  % 13.36  % 1.50  %
Net interest margin (TE) * 2.82  % 2.75  % 2.83  % 2.99  % 3.02  % 2.84  %
* 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
Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 Dec-23
Total common equity $ 668,522  $ 610,851  $ 634,967  $ 648,322  $ 615,978  $ 668,522 
Less: Goodwill and intangibles 94,003 94,086 94,169 94,253 94,336 94,003 
Tangible common equity (Non-GAAP) 574,519  516,765  540,798  554,069  521,642  574,519 
Ending shares outstanding 14,405,920  14,350,177  14,405,503  14,519,748  14,519,831  14,405,920 
Tangible book value per share (Non-GAAP) $ 39.88  $ 36.01  $ 37.54  $ 38.16  $ 35.93  $ 39.88 

(1) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(2) Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 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.

EX-99.2 3 q1div2024pressrelease.htm EX-99.2 Document

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For more information contact:
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753

For Immediate Release
Friday, January 26, 2024

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 $0.60 per share, payable on February 16, 2024, to common shareholders of record on February 9, 2024.

Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.