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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 27, 2023

 

   
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 Code)

 

Registrant’s telephone number, including area code  (888) 503-5753

 

(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 27, 2023, Tompkins Financial Corporation, (the “Company”) issued a press release announcing its earnings for the calendar quarter ended December 31, 2022. 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 Item 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 27, 2023, the Company’s Board of Directors declared a $0.60 per share dividend, payable on February 15, 2023, to common shareholders of record on February 7, 2023. A copy of the press release announcing the dividend 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 27, 2023
  99.2 Press Release of Tompkins Financial Corporation Dated January 27, 2023
  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 27, 2023  
  Stephen S. Romaine
  President and CEO

  

EX-99.1 2 ex99-1.htm PRESS RELEASE

 

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, January 27, 2023

Tompkins Financial Corporation Reports Increase in Fourth Quarter Earnings

 

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation (“Tompkins” or the “Company”) reported diluted earnings per share of $1.36 for the fourth quarter of 2022, up 2.3% compared to $1.33 reported in the fourth quarter of 2021. Net income for the fourth quarter of 2022 was $19.5 million, which was unchanged when compared to the same period in 2021.

 

For the year ended December 31, 2022, diluted earnings per share of $5.89 were down 2.6% compared to the year ended December 31, 2021. Net income for 2022 was $85.0 million, a decrease of $4.2 million compared to the year ended December 31, 2021. Significant contributors to the negative variance in annual net income included a reduction in net deferred loan fees associated with PPP loans from $11.2 million in 2021 to $3.0 million in 2022, as well as an increase in provision for credit loss expense, which was a credit of $2.2 million in 2021 versus an expense of $2.8 million in 2022.

 

During the fourth quarter of 2022, the Company sold its VISA Class B common shares, recognizing a pre-tax gain of $11.4 million. Also in the fourth quarter of 2022, the Company sold $147.9 million of available-for-sale securities, recognizing a pre-tax loss on the sale of $11.9 million. The available-for-sale securities sold during the quarter had an average yield of 0.41% and remaining life of 2.1 years. Proceeds from the sale of the VISA Class B shares and the available-for-sale securities were used to pay down overnight borrowings with the FHLB.

 

  


Tompkins President and CEO, Stephen Romaine, commented, “We are pleased to report earnings growth in the fourth quarter of 2022, when compared to the same quarter last year. The quality of our balance sheet remains a strength, as we had net credit recoveries for the year and nonperforming loans remain near historic lows. Our performance metrics remain strong as we begin a new year facing economic uncertainty and a challenging interest rate environment. We remain focused on growth that is built on quality customer relationships and on improving the overall efficiency of our Company.”

 

SELECTED HIGHLIGHTS FOR THE PERIOD:

Total loans at December 31, 2022 were $5.3 billion, up $60.5 million over the immediate prior quarter, reflecting an annualized increase of 4.7% from September 30, 2022, and up $193.4 million or 3.8% from December 31, 2021. Excluding PPP loans, total loans at December 31, 2022 were up 5.3% over year-end 2021.
Total deposits at December 31, 2022 were $6.6 billion, down $189.1 million or 2.8% from December 31, 2021, while noninterest bearing deposits of $2.2 billion were up $14.4 million or 0.7% over the same time period.
Net interest margin of 3.02% for the quarter ended December 31, 2022 was down from 3.04% for the quarter ended September 30, 2022, and up from 3.01% for the quarter ended December 31, 2021.
Return on average equity for the year ended December 31, 2022 of 13.25% was higher than any of the previous three years.

 

NET INTEREST INCOME

Net interest margin was 3.02% for the fourth quarter of 2022, down compared to the 3.04% reported for the third quarter of 2022, and up compared to the 3.01% reported for the fourth quarter of 2021. The decrease in margin from the third quarter of 2022 was due primarily to the increase in interest expense on interest-bearing deposits and short-term borrowings, partially offset by higher yields on loan, securities and cash, reflective of the higher interest rate environment.

 

Net interest income was $57.3 million for the fourth quarter of 2022, down from $58.1 million for the third quarter of 2022 and $57.8 million for the fourth quarter of 2021. Full year net interest income was $230.3 million for the year ended December 31, 2022, up from $223.8 million reported for the year ended December 31, 2021.

 

Comparisons to prior periods are impacted by net fees on PPP loans, which have largely paid down during 2022. Net interest income in the current quarter included $5,000 of net deferred loan fees associated with PPP loans, down from $88,000 of net deferred PPP loan fees for the third quarter of 2022, and $3.2 million of net deferred PPP loan fees for the fourth quarter of 2021. Full year net interest income for 2021 included net deferred loan fees associated with PPP loans of $11.2 million and a $1.9 million purchase accounting charge related to the redemption of $15.2 million in trust preferred securities; full year net deferred loan fees on PPP loans in 2022 were $3.0 million.

  


 

Average loans for the quarter ended December 31, 2022 increased $145.7 million, or 2.9%, compared to the same period in 2021, and were in line with average loans for the third quarter of 2022. The increase in average loans as compared to the same period in the prior year was mainly in commercial and residential real estate loans, which were up 7.9% and 4.9%, respectively. Commercial and industrial loans were down 14.6%, mainly driven by lower PPP loan balances. Average loan yields for the quarter ended December 31, 2022 were up 27 basis points from the third quarter of 2022 and up 32 basis points compared to the same period in 2021.

 

Average loans for the year ended December 31, 2022 were in line with average loans for the year ended December 31, 2021. Average loan yields for the year ended December 31, 2022, were up 9 basis points compared to 2021, which reflects the impact of rising market interest rates in 2022.

 

Average total deposits for the fourth quarter of 2022 were down $261.8 million, or 3.8%, compared to the same period in 2021 and were down $108.1 million, or 1.6%, compared to average deposits for the third quarter of 2022. The decrease was largely driven by inflation and higher rate alternatives due to current interest rate environment and tighter monetary policy. The total cost of interest-bearing liabilities of 0.84% for the fourth quarter of 2022 represented an increase of 39 basis points over the third quarter of 2022, and an increase of 62 basis points over the same period in 2021.

 

Average total deposits for 2022 were flat compared to 2021. Average noninterest bearing deposits for 2022 were up $90.2 million, or 4.3%, compared to 2021. The total cost of interest-bearing liabilities for full year ended December 31, 2022 increased by 8 basis points to 0.43% from the same period in 2021.

 

NONINTEREST INCOME

Noninterest income of $18.4 million for the fourth quarter of 2022 was down 4.2% compared to the same period in 2021. Negatively impacting noninterest income during the quarter were lower wealth management fees, primarily due to market conditions, as well as a net loss on sale of securities of $455,000.

 

For the full year 2022, noninterest income of $78.0 million was down 1.1% from 2021. Year to date 2022 noninterest income reflected higher revenue from insurance commissions, deposit fees and card services fees, which were offset by lower wealth management fees and net losses of $634,000 on securities transactions.

 

  


NONINTEREST EXPENSE

Noninterest expense was $50.2 million for the fourth quarter of 2022, up $2.0 million, or 4.2%, over the fourth quarter of 2021, with the increase largely driven by higher personnel related costs. Increased spending on marketing and technology also contributed to expense growth in the fourth quarter of 2022 compared to the same period in 2021.

 

For the full year 2022, noninterest expense was $195.8 million, up $5.5 million, or 2.9%, over 2021. The growth in noninterest expense for the year-to-date period was primarily driven by increases in salaries, wages and benefits and other noninterest expense. Contributing to the growth in these expense items were nonrecurring expenses of $1.2 million, related to the consolidation and rebranding of the Company’s four banking charters The year-to-date period in 2021 included $2.9 million in penalties related to the prepayment of $135.0 million in FHLB fixed rate advances.

 

INCOME TAX EXPENSE

The Company’s effective tax rate was 18.6% for the fourth quarter of 2022, compared to 21.7% for the same period in 2021. The effective tax rate for the year ended December 31, 2022 was 22.4%, compared to 22.0% reported for 2021.

 

The Company’s banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim these benefits is that the consolidated company has qualified assets of no more than $8.0 billion for the taxable year. Prior to the fourth quarter of 2022, the Company expected to exceed the asset threshold and its effective tax rate reflected the anticipated loss of these tax benefits. With the decrease in total assets between September 30, 2022 and December 31, 2022, the Company retained the tax benefits, and as a result, adjusted its tax rate in the fourth quarter of 2022 to reflect the retention of the benefits. The Company will continue to monitor consolidated average assets to determine future eligibility.

 

ASSET QUALITY

The allowance for credit losses represented 0.87% of total loans and leases at December 31, 2022, up from 0.86% at September 30, 2022 and 0.84% at December 31, 2021. The ratio of the allowance to total nonperforming loans and leases improved to 139.85% at December 31, 2022, up compared to 128.27% at September 30, 2022 and 137.51% at December 31, 2021.

 

The provision for credit loss expense for the fourth quarter of 2022 was $1.4 million compared to $3.9 million for the same period in 2021. Provision expense for the year ended December 31, 2022 was an expense of $2.8 million, compared to a credit of $2.2 million for 2021. The increase in the provision for credit losses for the year-ended December 31, 2022 is mainly driven by current economic forecasts coupled with loan growth.

  


 

Nonperforming assets represented 0.43% of total assets at December 31, 2022, down from 0.45% at September 30, 2022, and up from 0.40% at December 31, 2021. At December 31, 2022, nonperforming loans and leases totaled $32.8 million, compared to $34.9 million at September 30, 2022 and $31.2 million at December 31, 2021.

 

Special Mention and Substandard loans and leases totaled $98.3 million at December 31, 2022, reflecting improvement from $106.7 million at September 30, 2022, and $137.6 million at December 31, 2021.

 

CAPITAL POSITION

Capital ratios at December 31, 2022 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets was 14.42% at December 31, 2022, compared to 14.26% at September 30, 2022 and 14.23% at December 31, 2021. The ratio of Tier 1 capital to average assets was 9.34% at December 31, 2022, compared to 9.14% at September 30, 2022 and 8.72% at December 31, 2021.

 

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. Forward-looking statements are neither historical facts nor assurances of future performance. 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; estimated GDP growth and inflation trends; our ability to attract and retain deposits and access other sources of liquidity; the impact of the interest rate and inflationary environment on the Company’s business, financial condition and results of operations; other income or cash flow anticipated from the Company’s operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, such as SEC rule making, The Dodd-Frank Act, Basel III, 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 such as the war in the Ukraine, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; public health crises and pandemics, including the COVID-19 pandemic, and their effects on the economic and business environments in which we operate, including on our credit quality and business operations, as well as the impact on general economic and financial market conditions; cybersecurity threats and the cost of defending against them; 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 FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

 

(In thousands, except share and per share data)   As of   As of
ASSETS   12/31/2022   12/31/2021
        (Audited)
Cash and noninterest bearing balances due from banks   $ 18,572     $ 23,078  
Interest bearing balances due from banks     59,265       40,029  
Cash and Cash Equivalents     77,837       63,107  
                 
Available-for-sale debt securities, at fair value (amortized cost of $1,831,791 at December 31, 2022 and $2,063,790 at December 31, 2021)     1,594,967       2,044,513  
Held-to-maturity securities, at amortized cost (fair value of $261,692 at December 31, 2022 and $282,288 at December 31, 2021)     312,344       284,009  
Equity securities, at fair value (amortized cost $777 at December 31, 2022 and $902 at December 31, 2021)     777       902  
Total loans and leases, net of unearned income and deferred costs and fees     5,268,911       5,075,467  
Less: Allowance for credit losses     45,934       42,843  
Net Loans and Leases     5,222,977       5,032,624  
                 
Federal Home Loan Bank and other stock     17,720       10,996  
Bank premises and equipment, net     82,140       85,416  
Corporate owned life insurance     85,556       86,495  
Goodwill     92,602       92,447  
Other intangible assets, net     2,708       3,643  
Accrued interest and other assets     181,058       115,830  
Total Assets   $ 7,670,686     $ 7,819,982  
LIABILITIES                
Deposits:                
Interest bearing:                
Checking, savings and money market     3,820,739       4,016,025  
Time     631,411       639,674  
Noninterest bearing     2,150,145       2,135,736  
Total Deposits     6,602,295       6,791,435  
                 
Federal funds purchased and securities sold under agreements to repurchase     56,278       66,787  
Other borrowings     291,300       124,000  
Other liabilities     103,423       108,819  
Total Liabilities   $ 7,053,296     $ 7,091,041  
EQUITY                
Tompkins Financial Corporation shareholders’ equity:                
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,555,741  at December 31, 2022; and 14,696,911 at December 31, 2021     1,456       1,470  
Additional paid-in capital     302,763       312,538  
Retained earnings     526,727       475,262  
Accumulated other comprehensive loss     (208,689 )     (55,950 )
Treasury stock, at cost – 128,749 shares at December 31, 2022, and 122,824 shares at December 31, 2021     (6,279 )     (5,791 )
Total Tompkins Financial Corporation Shareholders’ Equity     615,978       727,529  
Noncontrolling interests     1,412       1,412  
Total Equity   $ 617,390     $ 728,941  
Total Liabilities and Equity   $ 7,670,686     $ 7,819,982  
                 

 

  


 

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME    

 

(In thousands, except per share data) (Unaudited)   Three Months Ended   Year Ended
      12/31/2022       12/31/2021       12/31/2022       12/31/2021  
INTEREST AND DIVIDEND INCOME                                
Loans   $ 58,930     $ 53,086     $ 217,607     $ 214,684  
Due from banks     181       77       371       343  
Available-for-sale debt securities     6,939       6,252       27,929       23,440  
Held-to-maturity securities     1,221       1,031       4,771       2,075  
Federal Home Loan Bank and other stock     254       168       646       776  
Total Interest and Dividend Income     67,525     $ 60,614     $ 251,324     $ 241,318  
INTEREST EXPENSE                                
Time certificates of deposits of $250,000 or more     909       478       2,298       2,202  
Other deposits     6,973       1,810       13,870       8,645  
Federal funds purchased and securities sold under agreements to repurchase     14       16       60       64  
Trust preferred debentures     0       0       0       2,233  
Other borrowings     2,335       499       4,815       4,382  
Total Interest Expense     10,231       2,803       21,043       17,526  
Net Interest Income     57,294       57,811       230,281       223,792  
Less: Provision (credit) for credit loss expense     1,397       3,914       2,789       (2,219 )
Net Interest Income After Credit for Credit Loss Expense     55,897       53,897       227,492       226,011  
NONINTEREST INCOME                                
Insurance commissions and fees     7,630       7,783       36,201       34,836  
Wealth management fees     4,241       5,041       18,091       19,388  
Service charges on deposit accounts     1,913       1,768       7,365       6,347  
Card services income     2,791       2,775       11,024       10,826  
Other income     2,231       1,795       5,925       7,203  
Net (loss) gain on securities transactions     (455 )     (8 )     (634 )     249  
Total Noninterest Income     18,351       19,154       77,972       78,849  
NONINTEREST EXPENSE                                
Salaries and wages     25,249       24,561       98,261       96,038  
Other employee benefits     6,342       6,285       24,969       24,172  
Net occupancy expense of premises     3,163       3,137       13,093       13,179  
Furniture and fixture expense     2,007       2,108       8,058       8,328  
Amortization of intangible assets     218       329       873       1,317  
Other operating expense     13,211       11,734       50,497       47,253  
Total Noninterest Expenses     50,190       48,154       195,751       190,287  
Income Before Income Tax Expense     24,058       24,897       109,713       114,573  
Income Tax Expense     4,478       5,401       24,557       25,182  
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation     19,580       19,496       85,156       89,391  
Less: Net Income Attributable to Noncontrolling Interests     32       31       126       127  
Net Income Attributable to Tompkins Financial Corporation   $ 19,548       19,465       85,030       89,264  
Basic Earnings Per Share   $ 1.36     $ 1.34     $ 5.92     $ 6.08  
Diluted Earnings Per Share   $ 1.36     $ 1.33     $ 5.89     $ 6.05  

 

  


 

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

 

    Quarter Ended   Quarter Ended
    December 31, 2022   December 31, 2021
    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   $ 58,488     $ 181       1.23 %   $ 228,570     $ 77       0.13 %
Securities (1)                                                
U.S. Government securities     2,186,858       7,627       1.38 %     2,248,954       6,728       1.19 %
State and municipal (2)     94,377       608       2.56 %     105,215       672       2.53 %
Other securities (2)     3,270       47       5.68 %     3,407       23       2.64 %
Total securities     2,284,505       8,282       1.44 %     2,357,576       7,423       1.25 %
FHLBNY and FRB stock     15,942       255       6.33 %     10,382       168       6.42 %
Total loans and leases, net of unearned income (2)(3)     5,209,721       59,140       4.50 %     5,064,028       53,354       4.18 %
Total interest-earning assets     7,568,656       67,858       3.56 %     7,660,556       61,022       3.16 %
Other assets     152,679                       333,260                  
Total assets   $ 7,721,335                     $ 7,993,816                  
LIABILITIES & EQUITY                                                
Deposits                                                
Interest-bearing deposits                                                
Interest bearing checking, savings, & money market   $ 3,905,570     $ 5,888       0.60 %   $ 4,130,652     $ 793       0.08 %
Time deposits     615,493       1,994       1.28 %     663,713       1,495       0.89 %
Total interest-bearing deposits     4,521,063       7,882       0.69 %     4,794,365       2,288       0.19 %
Federal funds purchased & securities sold under agreements to repurchase     55,701       14       0.10 %     61,976       16       0.11 %
Other borrowings     251,797       2,335       3.68 %     110,370       499       1.79 %
Trust preferred debentures     0       0       0.00 %     0       0       0.00 %
Total interest-bearing liabilities     4,828,561       10,231       0.84 %     4,966,711       2,803       0.22 %
Noninterest bearing deposits     2,196,992                       2,185,489                  
Accrued expenses and other liabilities     115,063                       118,997                  
Total liabilities     7,140,615                       7,271,197                  
Tompkins Financial Corporation Shareholders’ equity     579,223                       721,123                  
Noncontrolling interest     1,497                       1,496                  
Total equity     580,720                       722,619                  
                                                 
Total liabilities and equity   $ 7,721,335                     $ 7,993,816                  
Interest rate spread                     2.72 %                     2.94 %
Net interest income/margin on earning assets             57,627       3.02 %             58,219       3.01 %
                                                 
Tax Equivalent Adjustment             (333 )                     (408 )        
Net interest income per consolidated financial statements           $ 57,294                     $ 57,811          

 

  


 

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

 

    Year to Date Period Ended   Year to Date Period Ended
    December 31, 2022   December 31, 2021
    Average           Average        
    Balance           Balance       Average
(Dollar amounts in thousands)   (YTD)   Interest       (YTD)   Interest   Yield/Rate
ASSETS                        
Interest-earning assets                        
Interest-bearing balances due from banks   $ 85,788     $ 371       0.43 %   $ 307,253     $ 343       0.11 %
Securities (1)                                                
U.S. Government securities     2,265,226       30,587       1.35 %     2,003,450       23,145       1.16 %
State and municipal (2)     97,283       2,490       2.56 %     112,391       2,871       2.55 %
Other securities (2)     3,329       135       4.06 %     3,417       92       2.68 %
Total securities     2,365,838       33,212       1.40 %     2,119,258       26,108       1.23 %
FHLBNY and FRB stock     13,354       646       4.84 %     14,830       776       5.24 %
Total loans and leases, net of unearned income (2)(3)     5,142,098       218,494       4.25 %     5,184,491       215,709       4.16 %
Total interest-earning assets     7,607,078       252,723       3.32 %     7,625,832       242,936       3.19 %
Other assets     221,442                       343,119                  
Total assets   $ 7,828,520                     $ 7,968,951                  
LIABILITIES & EQUITY                                                
Deposits                                                
Interest-bearing deposits                                                
Interest bearing checking, savings, & money market   $ 4,029,008     $ 10,389       0.26 %   $ 4,034,969     $ 3,736       0.09 %
Time deposits     611,708       5,779       0.94 %     711,381       7,111       1.00 %
Total interest-bearing deposits     4,640,716       16,168       0.35 %     4,746,350       10,847       0.23 %
Federal funds purchased & securities sold under agreements to repurchase     57,126       60       0.10 %     58,627       64       0.11 %
Other borrowings     195,110       4,815       2.47 %     217,799       4,382       2.01 %
Trust preferred debentures     0       0       0.00 %     7,367       2,233       30.32 %
Total interest-bearing liabilities     4,892,952       21,043       0.43 %     5,030,143       17,526       0.35 %
Noninterest bearing deposits     2,186,720                       2,096,542                  
Accrued expenses and other liabilities     107,122                       117,790                  
Total liabilities     7,186,794                       7,244,475                  
Tompkins Financial Corporation Shareholders’ equity     640,258                       723,009                  
Noncontrolling interest     1,468                       1,467                  
Total equity     641,726                       724,476                  
                                                 
Total liabilities and equity   $ 7,828,520                     $ 7,968,951                  
Interest rate spread                     2.89 %                     2.84 %
Net interest income/margin on earning assets             231,680       3.05 %             225,410       2.96 %
                                                 
Tax Equivalent Adjustment             (1,399 )                     (1,618 )        
Net interest income per consolidated financial statements           $ 230,281                     $ 223,792          

 

  


Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)            

    Quarter-Ended   Year-Ended
Period End Balance Sheet   Dec-22   Sep-22   Jun-22   Mar-22   Dec-21   Dec-22
Securities   $ 1,908,088     $ 2,054,036     $ 2,204,851     $ 2,285,527     $ 2,329,424     $ 1,908,088  
Total Loans     5,268,911       5,208,436       5,162,503       5,063,451       5,075,467       5,268,911  
Allowance for credit losses     45,934       44,772       43,793       42,126       42,843       45,934  
Total assets     7,670,686       7,779,941       7,842,461       7,891,111       7,819,982       7,670,686  
Total deposits     6,602,295       6,936,726       6,769,521       7,016,739       6,791,435       6,602,295  
Federal funds purchased and securities sold under agreements to repurchase     56,278       55,340       50,075       57,115       66,787       56,278  
Other borrowings     291,300       101,000       295,600       60,000       124,000       291,300  
Trust preferred debentures     0       0       0       0       0       0  
Total common equity     615,978       571,453       622,843       656,049       727,529       615,978  
Total equity     617,390       572,959       624,318       657,492       728,941       617,390  
Average Balance Sheet                                                
Average earning assets   $ 7,568,656     $ 7,639,123     $ 7,621,588     $ 7,598,922     $ 7,660,556     $ 7,607,078  
Average assets     7,721,335       7,853,847       7,830,645       7,910,047       7,993,816       7,828,520  
Average interest-bearing liabilities     4,828,561       4,861,857       4,901,345       4,982,075       4,966,711       4,892,952  
Average equity     580,720       635,324       639,354       713,027       722,619       641,726  
Share data                                                
Weighted average shares outstanding (basic)     14,308,323       14,289,022       14,317,415       14,400,003       14,452,775       14,328,280  
Weighted average shares outstanding (diluted)     14,385,884       14,367,149       14,387,601       14,478,183       14,532,480       14,404,294  
Period-end shares outstanding     14,519,831       14,483,757       14,504,604       14,561,450       14,661,001       14,519,831  
Common equity book value per share   $ 42.42     $ 39.45     $ 42.94     $ 45.05     $ 49.62     $ 42.42  
Income Statement                                                
Net interest income   $ 57,294     $ 58,111     $ 58,262     $ 56,614     $ 57,811     $ 230,281  
Provision (credit) for credit loss expense (5)     1,397       1,056       856       (520 )     3,914       2,789  
Noninterest income     18,351       20,692       18,944       19,985       19,154       77,972  
Noninterest expense (5)     50,190       49,602       49,120       46,839       48,154       195,751  
Income tax expense     4,478       6,774       6,329       6,976       5,401       24,557  
Net income attributable to Tompkins Financial Corporation     19,548       21,340       20,869       23,273       19,465       85,030  
Noncontrolling interests     32       31       32       31       31       126  
Basic earnings per share (4)     1.36       1.49       1.45       1.61       1.34       5.92  
Diluted earnings per share (4)     1.36       1.48       1.45       1.60       1.33       5.89  
Nonperforming Assets                                                
Nonaccrual loans and leases   $ 28,289     $ 30,013     $ 24,665     $ 25,200     $ 26,033     $ 28,290  
Loans and leases 90 days past due and accruing     25       161       62       0       0       25  
Troubled debt restructuring not included above     4,530       4,730       4,872       5,064       5,124       4,530  
Total nonperforming loans and leases     32,844       34,904       29,599       30,264       31,157       32,845  
OREO     152       335       122       88       135       152  
Total nonperforming assets   $ 32,996     $ 35,239     $ 29,721     $ 30,352     $ 31,292     $ 32,997  

  


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

    Quarter-Ended   Year-Ended
Delinquency - Total loan and lease portfolio     Dec-22       Sep-22       Jun-22       Mar-22       Dec-21       Dec-22  
Loans and leases 30-89 days past due and                                                
accruing   $ 3,172     $ 3,160     $ 9,837     $ 1,735     $ 3,072     $ 3,172  
Loans and leases 90 days past due and accruing     25       161       62       0       0       25  
Total loans and leases past due and accruing     3,197       3,321       9,899       1,735       3,072       3,197  
Allowance for Credit Losses
Balance at beginning of period   $ 44,772     $ 43,793     $ 42,126     $ 42,843     $ 46,259     $ 42,843  
Provision (credit) for credit losses     1,352       1,101       780       (734 )     3,600     $ 2,499  
Net loan and lease charge-offs (recoveries)     190       122       (887 )     (17 )     7,016     $ (592 )
Allowance for credit losses at end of period   $ 45,934     $ 44,772     $ 43,793     $ 42,126     $ 42,843     $ 45,934  
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period   $ 2,751     $ 2,796     $ 2,720     $ 2,506     $ 2,192     $ 2,506  
(Credit) provision for credit losses     45       (45 )     76       214       314     $ 290  
Allowance for credit losses at end of period   $ 2,796     $ 2,751     $ 2,796     $ 2,720     $ 2,506     $ 2,796  
Loan Classification - Total Portfolio                                                
Special Mention   $ 49,752     $ 66,730     $ 72,270     $ 92,380     $ 85,530     $ 49,752  
Substandard     48,537       40,007       42,756       42,722       52,047       48,537  
Ratio Analysis                                                
Credit Quality                                                
Nonperforming loans and leases/total loans and leases     0.62 %     0.67 %     0.57 %     0.60 %     0.61 %     0.62 %
Nonperforming assets/total assets     0.43 %     0.45 %     0.38 %     0.38 %     0.40 %     0.43 %
Allowance for credit losses/total loans and leases     0.87 %     0.86 %     0.85 %     0.83 %     0.84 %     0.87 %
Allowance/nonperforming loans and leases     139.86 %     128.27 %     147.95 %     139.20 %     137.51 %     139.85 %
Net loan and lease losses annualized/total average loans and leases     0.01 %     0.01 %     (0.07 )%     0.00 %     0.55 %     (0.01 )%
Capital Adequacy                                                
Tier 1 Capital (to average assets)     9.34 %     9.14 %     9.02 %     8.89 %     8.72 %     9.34 %
Total Capital (to risk-weighted assets)     14.42 %     14.26 %     14.07 %     14.23 %     14.23 %     14.42 %
Profitability (period-end)                                                
Return on average assets *     1.00 %     1.08 %     1.07 %     1.19 %     0.97 %     1.09 %
Return on average equity *     13.36 %     13.33 %     13.09 %     13.24 %     10.69 %     13.25 %
Net interest margin (TE) *     3.02 %     3.04 %     3.09 %     3.04 %     3.01 %     3.05 %
* Quarterly ratios have been annualized

(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 2022 and 2021 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, 2021.

(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 ex99-2.htm PRESS RELEASE

 

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, January 27, 2023

 

Tompkins Financial Corporation Reports Increased 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 15, 2023, to common shareholders of record on February 7, 2023. The dividend amount represents an increase of $0.03 per share, or 5.3% over the dividend paid in the first quarter of 2022.

 

 

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.