Current Report Filing (8-k)

 

 

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)

October 24, 2014

 

Tompkins Financial Corporation

---

(Exact Name of Registrant as specified in Charter)

 

New York	1-12709	16-1482357
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

 

The Commons, PO Box 460, Ithaca, New York	14851
(Address of Principal Executive Offices)	(Zip Code)

 

Registrant’s telephone number, including area code

[phone]

 

 

---

(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 (17 CFR 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 (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition

 

On October 24, 2014, the Company issued a press release announcing its earnings for the calendar quarter ended September 30, 2014. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

Item 8.01 Other Events

 

On October 24, 2014, the Company issued a press release announcing that its Board of Directors approved payment of a regular quarterly cash dividend of $0.42 per share, payable on November 14, 2014, to common shareholders of record on November 4, 2014. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.

 

 

Exhibit No.		Description
99.1		Press Release of Tompkins Financial Corporation dated October 24, 2014
99.2		Press Release of Tompkins Financial Corporation dated October 24, 2014

 

 

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: October 27, 2014	By:	/s/ Stephen S. Romaine
		Stephen S. Romaine President and CEO

 

 

INDEX TO EXHIBITS

 

 

EXHIBIT NUMBER		EXHIBIT DESCRIPTION
99.1		Press Release of Tompkins Financial Corporation dated October 24, 2014
99.2		Press Release of Tompkins Financial Corporation dated October 24, 2014

 

 

 

 

 

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 [phone]

 

 

 

For Immediate Release

Friday, October 24, 2014

 

Tompkins Financial Corporation Reports Third Quarter Earnings

 

ITHACA, NY – Tompkins Financial Corporation (NYSEMKT:TMP)

 

Tompkins Financial Corporation reported diluted earnings per share of $0.92 for the third quarter of 2014, a 3.2% decrease from the $0.95 reported for September 30, 2013. The decline from the prior period is the result of non-recurring income that benefited prior period results. Adjusting for non-recurring income and expenses, diluted earnings per share for the third quarter of 2014, would reflect a 3.4% increase over the adjusted diluted earnings per share of $0.89 reported for the third quarter of 2013. Refer to the non-GAAP disclosure tables included in this press release for additional information on non-recurring adjustments to earnings per share.

 

President and CEO, Stephen S. Romaine said “Our core earnings performance, after adjusting for non-recurring items, reflects the best quarter in our history. Growth in several key business areas contributed to this success, as we saw growth in loan and deposit balances, while fee based income improved for both the quarter and year-to-date periods.”

 

For the year-to-date period ended September 30, 2014, diluted earnings per share were $2.64, up 5.6% over the $2.50 per share reported for the same period last year. Prior period year-to-date results were also impacted by non-recurring items as disclosed in the non-GAAP disclosure tables included in this press release. After adjusting for non-recurring income and expenses, year-to-date diluted earnings per share for 2014, reflect a 7.8% increase over the adjusted diluted earnings per share of $2.45 for the nine months ended September 30, 2013.

 

Selected highlights FOR third QUARTER:

 

§

Credit quality remains strong and continued to improve. Nonperforming assets at September 30, 2014, are down 4.3% from the most recent prior quarter, and have declined 35.2% from the same period last year.

 

§

Loans are up 4.4% over the last 12 months and are up 0.9% over the most recent quarter

 

§

Noninterest bearing deposits were up 14.6% over the last 12 months and are up 7.5% during the most recent quarter.

 

§

Provision for loan losses was a credit of $59,000 for the third quarter of 2014, as asset quality continued to improve and recoveries of previously charged off loans exceeded net losses.

 

§

Fee based income from insurance, investment services, deposit service charges and card services were up a combined 5.1% over the last 12 months and most recent quarter.

 

§

Tangible book value per share has increased for the fifth consecutive quarter, and is up 13.5% from the third quarter of 2013. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

 

NET INTEREST INCOME

 

Net interest income was $41.6 million for the third quarter of 2014, an increase of 2.6% and 2.7%, respectively over June 30, 2014 and September 30, 2013. Year-to-date net interest income of $122.1 million was up 3.1% compared to net interest income of $118.5 million reported for the same period in 2013, mainly a result of loan growth and lower interest expense on interest bearing deposits. The net interest margin for the third quarter of 2014 was 3.58%, compared to 3.63% for the same period in 2013.

 

NONINTEREST INCOME

 

Noninterest income was $17.6 million for the third quarter of 2014, down 5.3% compared to September 30, 2013. Year-to-date noninterest income of $52.7 million was in line with same period last year. Both the three and nine month periods in 2013 included pre-tax gains on the redemption of trust preferred securities of $1.4 million.

 

Noninterest income represented 29.7% of total revenue for the third quarter of 2014, compared to 31.4% for the same period in 2013. Insurance revenues, deposit fees and card service fees were all up compared to September 30, 2013, while fees related to investment services were down 1.6% compared to the same period prior year.

 

 

NONINTEREST EXPENSE

 

Noninterest expense was $38.5 million for the third quarter of 2014, up 2.6% compared to the third quarter of 2013. For the year-to-date period, noninterest expense was up 2.5% from the same period in 2013. The increase in noninterest expense compared to the same period prior year is mainly due to increased salaries and higher amortization of the FDIC indemnification asset as a result of better than expected performance on FDIC covered loans.

 

ASSET QUALITY

 

Asset quality trends show continued improvement in the third quarter of 2014. Substandard and Special Mention loans were $85.4 million at September 30, 2014, down from $99.1 million at the most recent prior quarter end and $146.4 million at the same quarter end last year. The percentage of nonperforming loans and leases to total loans and leases improved to 0.78% at September 30, 2014, compared to 1.38% reported at September 30, 2013. The percentage of nonperforming assets to total assets improved to 0.63%, which is the lowest this percentage has been over the past 22 quarters, and remains well below the most recent peer average of 1.47% reported by the Federal Reserve (1).

 

Provision for loan and lease losses was a credit of $59,000 for the third quarter of 2014, down from $2.0 million reported in the third quarter of 2013. Net loan and lease recoveries totaled $328,000 in the third quarter of 2014, compared to net loan and lease charge offs of $1.1 million reported in the third quarter of 2013.

 

The Company's allowance for originated loan and lease losses totaled $27.2 million at September 30, 2014, which represented 1.02% of total originated loans, compared to $25.7 million or 1.06% at September 30, 2013 and $26.8 million or 1.02% at June 30, 2014. The increase in the allowance when compared to the same period last year was mainly a result of loan growth and was partially offset by improved asset quality. The allowance for loan and lease losses covered 108.9% of nonperforming loans and leases as of September 30, 2014, up from 61.2% at September 30, 2013 and 103.1% at the most recent prior quarter.

 

CAPITAL POSITION

 

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets improved for the seventh consecutive quarter, to 8.85% at September 30, 2014, and the ratio of total capital to risk-weighted assets was 13.92%, up from 13.32% at September 30, 2013.

 

ABOUT TOMPKINS FINANCIAL CORPORATION

 

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

 

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 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. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

 

"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				09/30/2014		12/31/2013
Cash and noninterest bearing balances due from banks			$	84,129	$	82,163
Interest bearing balances due from banks				988		721
	Cash and Cash Equivalents			85,117		82,884
Trading securities, at fair value				9,473		10,991
Available-for-sale securities, at fair value (amortized cost of $1,375,637at September 30,
	2014 and $1,368,736 at December 31, 2013)			1,374,756		1,354,811
Held-to-maturity securities, at amortized cost (fair value of $48,017 at September 30, 2014
	and $19,625 at December 31, 2013)			47,608		18,980
Originated loans and leases, net of unearned income and deferred costs and fees				2,674,971		2,527,244
Acquired loans and leases, covered				20,910		25,868
Acquired loans and leases, non-covered				561,588		641,172
Less:  Allowance for loan and lease losses				27,786		27,970
	Net Loans and Leases			3,229,683		3,166,314
FDIC indemnification asset				2,298		4,790
Federal Home Loan Bank stock				14,838		25,041
Bank premises and equipment, net				59,550		55,932
Corporate owned life insurance				73,269		69,335
Goodwill				92,243		92,140
Other intangible assets, net				15,206		16,298
Accrued interest and other assets				86,878		105,523
	Total Assets		$	5,090,919	$	5,003,039
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,310,629		2,190,616
	Time			930,796		865,702
	Noninterest bearing			971,435		890,898
	Total Deposits			4,212,860		3,947,216
Federal funds purchased and securities sold under agreements to repurchase				128,368		167,724
Other borrowings, including certain amounts at fair value of $11,032 at September 30, 2014
	and $11,292 at December 31, 2013			166,509		331,531
Trust preferred debentures				37,298		37,169
Other liabilities				55,273		61,460
	Total Liabilities		$	4,600,308	$	4,545,100
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,830,002 at September 30, 2014; and 14,785,007 at December 31, 2013		1,483		1,479
	Additional paid-in capital			348,992		346,096
	Retained earnings			158,673		137,102
	Accumulated other comprehensive loss			(16,810)		(25,119)
	Treasury stock, at cost – 108,788 shares at September 30, 2014, and 105,449 shares
		at December 31, 2013		(3,277)		(3,071)
	Total Tompkins Financial Corporation Shareholders’ Equity			489,061		456,487
Noncontrolling interests				1,550		1,452
	Total Equity		$	490,611	$	457,939
	Total Liabilities and Equity		$	5,090,919	$	5,003,039
See notes to consolidated financial statements

 

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended				Nine Months Ended
(In thousands, except per share data) (Unaudited)			09/30/2014		09/30/2013		09/30/2014		09/30/2013
INTEREST AND DIVIDEND INCOME
Loans		$	38,298	$	38,048	$	112,601	$	112,027
Due from banks			0		1		2		9
Trading securities			102		147		321		472
Available-for-sale securities			7,718		7,830		23,637		23,222
Held-to-maturity securities			288		160		626		528
Federal Home Loan Bank stock and Federal Reserve Bank stock			212		193		616		538
Total Interest and Dividend Income			46,618		46,379		137,803		136,796
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more			996		1,208		2,900		3,651
Other deposits			1,830		1,894		5,446		6,093
Federal funds purchased and securities sold under agreements to
repurchase			683		901		2,263		2,877
Trust preferred debentures			573		660		1,714		2,037
Other borrowings			961		1,243		3,362		3,634
Total Interest Expense			5,043		5,906		15,685		18,292
Net Interest Income			41,575		40,473		122,118		118,504
Less:  (Credit) Provision for loan and lease losses			(59)		2,049		751		5,576
Net Interest Income After Provision for Loan and Lease Losses			41,634		38,424		121,367		112,928
NONINTEREST INCOME
Insurance commissions and fees			7,520		7,160		21,823		21,588
Investment services income			3,636		3,694		11,549		11,180
Service charges on deposit accounts			2,506		2,254		7,010		6,186
Card services income			1,936		1,735		5,968		5,163
Mark-to-market loss on trading securities			(87)		(87)		(181)		(472)
Mark-to-market gain on liabilities held at fair value			132		119		260		543
Other income			1,892		3,372		6,129		7,548
Gain on sale of available-for-sale securities			20		281		151		723
Total Noninterest Income			17,555		18,528		52,709		52,459
NONINTEREST EXPENSES
Salaries and wages			17,553		16,755		51,859		48,618
Pension and other employee benefits			4,941		5,606		15,964		17,014
Net occupancy expense of premises			2,969		2,850		9,296		8,865
Furniture and fixture expense			1,451		1,448		4,247		4,367
FDIC insurance			682		808		2,228		2,401
Amortization of intangible assets			518		544		1,570		1,648
Merger related expenses			0		0		0		228
Other operating expense			10,423		9,543		30,511		29,710
Total Noninterest Expenses			38,537		37,554		115,675		112,851
Income Before Income Tax Expense			20,652		19,398		58,401		52,536
Income Tax Expense			6,897		5,316		18,951		15,873
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			13,755		14,082		39,450		36,663
Less:  Net income attributable to noncontrolling interests			33		33		98		98
Net Income Attributable to Tompkins Financial Corporation		$	13,722	$	14,049	$	39,352	$	36,565
Basic Earnings Per Share		$	0.92	$	0.96	$	2.65	$	2.51
Diluted Earnings Per Share		$	0.92	$	0.95	$	2.64	$	2.50
See notes to consolidated financial statements

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				September 30, 2014					September 30, 2014					September 30, 2013
				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		$	579	$	—	0.22%	$	782	$	2	0.34%	$	2,261	$	9	0.53%
	Securities (4)
		U.S. Government securities		1,310,291		7,286	2.21%		1,304,141		22,163	2.27%		1,334,735		21,269	2.13%
		Trading securities		9,823		102	4.12%		10,327		321	4.16%		15,141		472	4.17%
		State and municipal (5)		110,819		1,030	3.69%		96,992		3,157	4.35%		97,253		3,750	5.16%
		Other securities (5)		4,259		32	2.98%		4,571		107	3.13%		7,996		210	3.51%
		Total securities		1,435,192		8,450	2.34%		1,416,031		25,748	2.43%		1,455,125		25,701	2.36%
	FHLBNY and FRB stock			19,252		212	4.37%		20,192		616	4.08%		22,051		538	3.26%
	Total loans and leases, net of unearned income (5)(6)			3,240,837		38,765	4.74%		3,218,371		113,924	4.73%		3,025,846		113,440	5.01%
	Total interest-earning assets			4,695,860		47,427	4.01%		4,655,376		140,290	4.03%		4,505,283		139,688	4.15%
Other assets				362,748					368,584					415,809
	Total assets			5,058,608					5,023,960					4,921,092
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,252,622		1,066	0.19%		2,265,787		3,276	0.19%		2,224,540		3,816	0.23%
		Time deposits		913,501		1,760	0.76%		901,283		5,070	0.75%		955,284		5,928	0.83%
		Total interest-bearing deposits		3,166,123		2,826	0.35%		3,167,070		8,346	0.35%		3,179,824		9,744	0.41%
Federal funds purchased & securities sold under
		agreements to repurchase		135,647		683	1.99%		147,775		2,263	2.05%		180,939		2,877	2.13%
Other borrowings				248,633		961	1.53%		258,578		3,362	1.74%		211,828		3,634	2.29%
Trust preferred debentures				37,270		573	6.10%		37,227		1,714	6.16%		43,160		2,037	6.31%
	Total interest-bearing liabilities			3,587,673		5,043	0.56%		3,610,650		15,685	0.58%		3,615,751		18,292	0.68%
Noninterest bearing deposits				925,986					879,691					790,557
Accrued expenses and other liabilities				55,029					54,040					73,201
	Total liabilities			4,568,688					4,544,381					4,479,509
Tompkins Financial Corporation Shareholders’ equity				488,386					478,078					440,082
Noncontrolling interest				1,534					1,501					1,501
	Total equity			489,920					479,579					441,583
	Total liabilities and equity		$	5,058,608				$	5,023,960				$	4,921,092
Interest rate spread							3.45%					3.45%					3.47%
	Net interest income/margin on earning assets					42,384	3.58%				124,605	3.58%				121,396	3.60%
Tax Equivalent Adjustment						(809)					(2,487)					(2,892)
	Net interest income per consolidated financial statements				$	41,575				$	122,118				$	118,504

  

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Sep-14		Jun-14		Mar-14		Dec-13		Sep-13		Dec-13
Period End Balance Sheet
Securities	$	1,431,837	$	1,420,226	$	1,408,918	$	1,384,782	$	1,390,233	$	1,384,782
Originated loans and leases, net of unearned income and deferred costs and fees (2)		2,674,971		2,610,289		2,555,522		2,527,244		2,420,695		2,527,244
Acquired loans and leases (3)		582,498		618,679		648,690		667,040		698,617		667,040
Allowance for  loan and lease losses		27,786		27,517		28,014		27,970		26,408		27,970
Total assets		5,090,919		5,057,821		5,041,800		5,003,039		4,932,428		5,003,039
Total deposits		4,212,860		4,044,389		4,105,170		3,947,216		3,972,756		3,947,216
Federal funds purchased and securities sold under agreements to repurchase		128,368		144,796		158,794		167,724		162,117		167,724
Other borrowings		166,509		287,158		214,616		331,531		242,177		331,531
Trust preferred debentures		37,298		37,254		37,211		37,169		37,127		37,169
Shareholders' equity		490,611		489,237		473,822		457,939		444,276		457,939
Average Balance Sheet
Average earning assets	$	4,695,860	$	4,666,722	$	4,602,517	$	4,571,099	$	4,533,603	$	4,521,873
Average assets		5,058,608		5,030,395		4,982,033		4,950,476		4,897,678		4,928,499
Average interest-bearing liabilities		3,587,673		3,620,130		3,624,555		3,574,803		3,572,708		3,605,430
Average equity		489,920		480,063		468,515		449,445		434,482		443,565
Share data
Weighted average shares outstanding (basic)		14,711,709		14,709,881		14,644,548		14,589,120		14,515,053		14,477,617
Weighted average shares outstanding (diluted)		14,795,343		14,821,191		14,775,386		14,731,786		14,622,512		14,573,919
Period-end shares outstanding		14,794,092		14,853,439		14,829,007		14,749,097		14,692,671		14,749,097
Book value per share	$	33.16	$	32.94	$	31.95	$	31.05	$	30.24	$	31.05
Tangible book value per share (Non-GAAP)	$	25.90	$	25.68	$	24.65	$	23.70	$	22.82	$	23.70
Income Statement
Net interest income	$	41,575	$	40,516	$	40,027	$	42,624	$	40,473	$	161,129
(Credit) Provision for loan/lease losses		(59)		67		743		585		2,049		6,161
Noninterest income		17,555		17,720		17,434		17,439		18,528		69,898
Noninterest expense		38,537		38,928		38,210		40,251		37,554		153,102
Income tax expense		6,897		6,148		5,906		4,905		5,316		20,777
Net income attributable to Tompkins Financial Corporation		13,722		13,061		12,569		14,290		14,049		50,856
Noncontrolling interests		33		32		33		32		33		131
Basic earnings per share (9)	$	0.92	$	0.88	$	0.85	$	0.97	$	0.96	$	3.48
Diluted earnings per share (9)	$	0.92	$	0.87	$	0.84	$	0.96	$	0.95	$	3.46
Nonperforming Assets
Originated nonaccrual loans and leases	$	16,319	$	16,918	$	26,974	$	29,875	$	33,881	$	29,875
Acquired nonaccrual loans and leases		4,998		5,907		6,936		8,508		8,008		8,508
Originated loans and leases 90 days past due and accruing		395		543		339		607		1,217		607
Troubled debt restructurings not included above		3,800		3,327		1,266		45		46		45
Total nonperforming loans and leases		25,512		26,695		35,515		39,035		43,152		39,035
OREO (8)		6,533		6,795		5,351		4,253		6,264		4,253
Total nonperforming assets	$	32,045	$	33,490	$	40,866	$	43,288	$	49,416	$	43,288

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Sep-14		Jun-14		Mar-14		Dec-13		Sep-13		Dec-13
Loans and leases 30-89 days past due and
accruing (2)	$	3,811	$	5,221	$	5,660	$	5,762	$	12,193	$	5,762
Loans and leases 90 days past due and accruing (2)		395		543		339		607		1,217		607
Total originated loans and leases past due and accruing (2)		4,206		5,764		5,999		6,369		13,410		6,369
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	0	$	0	$	635	$	0	$	1,132	$	0
Covered loans and leases 90 days or more past
due and accruing (3)(7)		1,149		904		1,135		2,416		2,980		2,416
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		736		1,620		2,293		1,532		6,887		1,532
Non-covered loans and leases 90 days past
due and accruing (3)(7)		3,171		3,048		3,746		4,557		10,521		4,557
Total acquired loans and leases past due and accruing		5,056		5,572		7,809		8,505		21,520		8,505
Total loans and leases past due and accruing	$	9,262	$	11,336	$	13,808	$	14,874	$	34,930	$	14,874
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	26,752	$	26,661	$	26,700	$	25,722	$	24,853	$	24,643
(Credit) Provision for loan and lease losses		(264)		(56)		511		(325)		1,499		1,000
Net loan and lease (recoveries) charge-offs		(697)		(147)		550		(1,303)		630		(1,057)
Allowance for loan and lease losses (originated		27,185		26,752		26,661		26,700		25,722		26,700
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	765	$	1,353	$	1,270	$	686	$	605	$	0
Provision for loan and lease losses		205		123		232		910		549		5,161
Net loan and lease charge-offs		369		711		149		326		468		3,891
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		601		765		1,353		1270		686		1,270
Total allowance for loan and lease losses	$	27,786	$	27,517	$	28,014	$	27,970	$	26,408	$	27,970
Loan Classification - Originated Portfolio
Special Mention	$	27,854	$	35,484	$	44,725	$	42,365	$	42,975	$	42,365
Substandard		25,889		21,253		32,917		35,022		37,004		35,022
Loan Classification - Acquired Portfolio
Special Mention		7,605		12,124		14,936		17,322		23,939		17,322
Substandard		24,034		30,273		34,137		33,561		42,433		33,561
Loan Classifications - Total Portfolio
Special Mention		35,459		47,608		59,661		59,687		66,914		59,687
Substandard		49,923		51,526		67,054		68,583		79,437		68,583

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Sep-14		Jun-14		Mar-14		Dec-13		Sep-13		Dec-13
Nonperforming loans and leases/total loans and leases (7)		0.78%		0.83%		1.11%		1.22%		1.38%		1.22%
Nonperforming assets/total assets		0.63%		0.66%		0.81%		0.87%		1.00%		0.87%
Allowance for originated loan and lease losses/total originated loans and leases		1.02%		1.02%		1.04%		1.06%		1.06%		1.06%
Allowance/nonperforming loans and leases		108.91%		103.08%		78.88%		71.65%		61.20%		71.65%
Net loan and lease losses (recoveries) annualized/total average loans and leases		(0.04%)		0.07%		0.09%		(0.12%)		0.14%		0.09%
Capital Adequacy (period-end)
Tier 1 capital / average assets		8.85%		8.79%		8.68%		8.52%		8.37%		8.52%
Total capital / risk-weighted assets		13.92%		13.92%		13.67%		13.42%		13.32%		13.42%
Tangible common equity / tangible assets		7.69%		7.68%		7.38%		7.11%		6.92%		7.11%
Profitability
Return on average assets *		1.08%		1.04%		1.02%		1.15%		1.10%		1.03%
Return on average equity *		11.11%		10.91%		10.88%		12.62%		12.83%		11.47%
Net interest margin (TE) *		3.58%		3.55%		3.60%		3.78%		3.63%		3.65%
* Quarterly ratios have been annualized
Non-GAAP Disclosure
Reported noninterest income (GAAP)	$	17,555	$	17,720	$	17,434	$	17,439	$	18,528	$	69,898
Adjustments (pre-tax):
Gain on redemption of trust preferred		0		0		0		0		(1,410)		(1,410)
Gain on deposit conversion		0		0		0		(1,285)		0		(1,285)
Noninterest income (Non-GAAP)		17,555		17,720		17,434		16,154		17,118		68,613
Non-GAAP Disclosure
Reported net income (GAAP)	$	13,722	$	13,061	$	12,569	$	14,290	$	14,049	$	50,856
Adjustments (net of tax):
Merger related expenses		0		0		0		0		0		140
Gain on redemption of trust preferred		0		0		0		0		(846)		(846)
Gain on deposit conversion		0		0		0		(771)		0		(771)
Subtotal adjustments		0		0		0		(771)		(846)		(1,477)
Net operating income (Non-GAAP)		13,722		13,061		12,569		13,519		13,203		49,379
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.92	$	0.87	$	0.84	$	0.91	$	0.89	$	3.36

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure		Quarter-Ended									Year-Ended
		Sep-14		Jun-14		Mar-14		Dec-13		Sep-13		Dec-13
Reported net income (GAAP)	$	13,722	$	13,061	$	12,569	$	14,290	$	14,049	$	50,856
Merger related expenses (net of tax)		0		0		0		0		0		140
Gain on redemption of trust preferred (net of tax)		0		0		0		0		(846)		(846)
Gain on deposit conversion		0		0		0		(771)		0		(771)
Net operating income (Non-GAAP)		13,722		13,061		12,569		13,519		13,203		49,379
Amortization of intangibles (net of tax)		311		315		316		329		327		1,318
Adjusted net operating income (Non-GAAP)		14,033		13,376		12,885		13,848		13,530		50,697
Average total shareholders' equity	$	489,920	$	480,063	$	468,515	$	449,445	$	434,482	$	443,565
Less:  Average goodwill and intangibles		107,525		108,019		108,437		108,729		109,277		109,676
Average tangible shareholders' equity (Non-GAAP)		382,395		372,044		360,078		340,716		325,205		333,889
Adjusted operating return on shareholders' tangible equity (annualized) (Non-GAAP)		14.56%		14.42%		14.51%		16.13%		16.51%		15.18%
Non-GAAP Disclosure
Total shareholders' equity (GAAP)	$	490,611	$	489,237	$	473,822	$	457,939	$	444,276	$	457,939
Less:  Goodwill and intangibles		107,449		107,728		108,250		108,438		108,981		108,438
Tangible shareholders' equity		383,162		381,509		365,572		349,501		335,295		349,501
Ending shares outstanding		14,794,092		14,853,439		14,829,007		14,749,097		14,692,671		14,749,097
Tangible book value per share (Non-GAAP)	$	25.90	$	25.68	$	24.65	$	23.70	$	22.82	$	23.70
Non-GAAP Disclosure	Year-to-date period ended
	Sep-14		Sep-13
Net income attributable to Tompkins Financial			$
Corporation	$	39,352	$	36,565
Adjustments (net of tax):
Merger related expenses		0		140
Gain on redemption of trust preferred securities		0		(846)
Subtotal adjustments		0		(706)
Net operating income (Non-GAAP)	$	39,352	$	35,859
Adjusted diluted earnings per share	$	2.64	$	2.45
(1) Federal Reserve peer ratio as of June 30, 2014, 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.  "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, 2013.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans.  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.
(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 8-K

 

Exhibit 99.2

 

 

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, CFO & COO

Tompkins Financial Corporation [phone]

 

For Immediate Release

Friday, October 24, 2014

 

Tompkins Financial Corporation Increases Cash Dividend

 

ITHACA, NY - Tompkins Financial Corporation (NYSEMKT:TMP)

 

Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.42 per share, payable on November 14, 2014, to common shareholders of record on November 4, 2014. The current dividend represents a 5.0% increase over the $0.40 cash dividend paid in the third quarter of 2014.

 

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