Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.37 for the first quarter of 2025, unchanged from the immediate prior quarter, and up 16.1% from diluted earnings per share of $1.18 reported in the first quarter of 2024.
Net income for the first quarter of 2025 was $19.7 million, in line with the immediate prior quarter, and up 16.6% from the $16.9 million reported for the same period in 2024. The increase in net income from the first quarter of 2024 was mainly a result of higher net interest income, driven by increased interest income on loans, stabilized funding costs, and growth in fee-based revenues and other income, partially offset by higher provision for credit loss expense.
Tompkins President and CEO, Stephen Romaine, commented, "Our first quarter earnings continued the positive momentum from 2024. Our improved results were driven by growth in net interest income, noninterest income, and increased loan and deposit balances as compared to the first and fourth quarters of 2024. As we begin the year with new economic uncertainty, we believe that we remain well positioned with a strong balance sheet. We are committed to supporting our local communities and driving growth through building quality customer relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Net interest margin for the first quarter of 2025 was 2.98%, improved from 2.93% for the immediate prior quarter, and 2.73% for the first quarter of 2024.
- Total average cost of funds of 1.84% for the first quarter of 2025 was down 4 basis points compared to the fourth quarter of 2024, and down 2 basis points compared to the same period last year, as a result of funding mix and lower interest rates.
- Provision expense for the first quarter of 2025 was $5.3 million, compared to $1.4 million for fourth quarter of 2024 and $854,000 for the first quarter of 2024. The provision is discussed below under Asset Quality.
- Total fee-based services revenues (revenue from insurance, wealth management, and service charges on deposit accounts and cards services) for the first quarter of 2025 were up $1.2 million or 6.1% compared to the first quarter of 2024.
- Other income for the first quarter of 2025 included a $1.9 million gain on the sale of other real estate owned.
- Total loans at March 31, 2025 were up $46.7 million, or 0.8% compared to December 31, 2024 (3.1% on an annualized basis), and up $426.1 million, or 7.6%, from March 31, 2024.
- Total deposits at March 31, 2025 were $6.8 billion, up $281.7 million, or 4.4%, from December 31, 2024 (17.4% on an annualized basis), and up $303.9 million, or 4.7%, from March 31, 2024.
- Loan to deposit ratio at March 31, 2025 was 89.8%, compared to 93.0% at December 31, 2024, and 87.5% at March 31, 2024.
- Regulatory Tier 1 capital to average assets was 9.31% at March 31, 2025, up compared to 9.27% at December 31, 2024, and 9.08% at March 31, 2024.
NET INTEREST INCOME
Net interest income was $56.7 million for the first quarter of 2025, up $381,000 or 0.7% compared to the fourth quarter of 2024, and up $6.0 million or 11.8% compared to the first quarter of 2024. The increase in net interest income compared to both periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.
Net interest margin was 2.98% for the first quarter of 2025, up 5 basis points when compared to the immediate prior quarter, and up 25 basis points from 2.73% for the first quarter of 2024. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to lower funding costs reflecting a decrease in average deposit and borrowing rates. The increase in net interest margin when compared to the prior year period was mainly a result of higher yields on average interest earning assets and higher average loan balances, and lower funding costs resulting from improved funding mix.
Average loans for the quarter ended March 31, 2025 were up $93.6 million, or 1.6%, from the fourth quarter of 2024, and were up $403.8 million, or 7.2%, compared to the prior year period. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended March 31, 2025 was 4.69%, a slight increase from 4.67% for the quarter ended December 31, 2024, and up 22 basis points from 4.47% for the quarter ended March 31, 2024.
Average total deposits of $6.6 billion for the first quarter of 2025 were up $38.5 million, or 0.6%, compared to the fourth quarter of 2024, and up $254.2 million, or 4.0%, compared to the first quarter of 2024. The cost of interest-bearing deposits of 2.23% for the first quarter of 2025 was down 8 basis points from 2.31% for the fourth quarter of 2024, and up 6 basis points from 2.17% for the first quarter of 2024. The ratio of average noninterest bearing deposits to average total deposits for the first quarter of 2025 was 26.9% compared to 28.0% for the fourth quarter of 2025, and 28.8% for the first quarter of 2024. The average cost of interest-bearing liabilities for the first quarter of 2025 of 2.44% represents a decrease of 9 basis points over the fourth quarter of 2024, and a decrease of 7 basis points compared to the same period in 2024.
NONINTEREST INCOME
Noninterest income of $25.0 million for the first quarter of 2025 was up $2.9 million or 13.1% compared to the first quarter of 2024. The increase in quarterly noninterest income when compared to the first quarter of 2024 was mainly due to other income which included a $1.9 million gain on the sale of other real estate owned. Also contributing to the increase in noninterest income were fee based revenues, which included insurance commissions and fees, up $1.3 million or 13.1%; and wealth management fees, up $182,000 or 3.7%; which were partially offset by lower card services income, down $313,000 or 10.6%. Card services income in the first quarter of 2024 included a $255,000 sign-on bonus related to the renewal of a card services contract.
NONINTEREST EXPENSE
Noninterest expense was $50.6 million for the first quarter of 2025, up $750,000 or 1.5% compared to the first quarter of 2024. Contributing to the year-over-year increase was salaries and wages and other employee benefits, up $969,000 or 3.1%. The increase in noninterest expense was partially offset by a decrease of $325,000 or 5.7% in net occupancy expense of premises and furniture and fixture expense.
INCOME TAX EXPENSE
The provision for income tax expense of $6.1 million for an effective rate of 23.7% for the first quarter of 2025, compared to tax expense of $6.0 million for an effective rate of 23.5% for the fourth quarter of 2024, and $5.2 million and an effective rate of 23.5% for the same quarter in 2024.
ASSET QUALITY
The allowance for credit losses represented 1.01% of total loans and leases at March 31, 2025, up from 0.94% at year-end 2024, and from 0.92% reported at March 31, 2024. The increase in the allowance for credit losses coverage ratio over prior quarter end and the end of the prior year first quarter was mainly driven by specific reserves on individually analyzed nonaccrual commercial real estate credits and updates to economic forecasts for unemployment and GDP. These were partially offset by lower qualitative reserves related to asset quality. A specific reserve of $4.2 million was added to one commercial real estate relationship totaling $18.1 million. The specific reserve reflects the estimated decrease in fair value of the collateral based on a new appraisal received at the end of the quarter which is currently under internal review. The property currently generates positive cash flow and a majority of it is tenant occupied. The ratio of the allowance to total nonperforming loans and leases was 85.85% at March 31, 2025, compared to 111.06% at December 31, 2024, and 82.47% at March 31, 2024. The decrease in the ratio compared to the prior quarter end was due to the increase in nonperforming loans and leases, discussed in more detail below.
Provision for credit losses for the first quarter of 2025 was $5.3 million compared to $854,000 for the first quarter of 2024. The increase in provision expense for the first quarter of 2025 was mainly due to the previously discussed specific reserve on one commercial real estate relationship, and updated economic forecasts. Net charge-offs for the three months ended March 31, 2025 were $733,000, compared to $857,000 for the fourth quarter of 2024, and $228,000 for the same period in 2024.
Nonperforming assets of $71.2 million represented 0.87% of total assets at March 31, 2025, up from $65.2 million or 0.80% at December 31, 2024, and $62.7 million or 0.81% at March 31, 2024. The increase in nonperforming assets at March 31, 2025 compared to December 31, 2024 was largely due to the addition of one commercial real estate loan for $17.3 million that was previously included in loans past due 30-89 days being moved into nonperforming loans and leases during the quarter, and was partially offset by the sale of other real estate owned of $14.3 million. The Company believes that the existing collateral securing this $17.3 million loan is sufficient to cover the exposure as of March 31, 2025. At March 31, 2025, nonperforming loans and leases totaled $71.1 million, compared to $50.9 million at December 31, 2024, and $62.7 million at March 31, 2024. Loans past due 30-89 days totaled $12.3 million at March 31, 2025, $28.8 million at December 31, 2024, and $8.0 million at March 31, 2024.
Special Mention and Substandard loans and leases totaled $110.8 million at March 31, 2025, compared to $111.1 million reported at December 31, 2024, and $118.7 million reported at March 31, 2024.
CAPITAL POSITION
Capital ratios at March 31, 2025 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.28% at March 31, 2025, compared to 13.07% at December 31, 2024, and 13.43% at March 31, 2024. The ratio of Tier 1 capital to average assets was 9.31% at March 31, 2025, compared to 9.27% at December 31, 2024, and 9.08% at March 31, 2024.
LIQUIDITY POSITION
The Company's liquidity position at March 31, 2025 was stable and consistent with the immediate prior quarter end. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank's Discount Window advances and Federal Home Loan Bank (FHLB) advances. The Company maintained ready access to liquidity of $1.5 billion, or 18.6% of total assets, at March 31, 2025.
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 and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. 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", "commit", or "anticipate", as well as the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to nonperforming loans and future growth. 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 Report 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 and historical performance: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and other sources of liquidity; gross domestic product 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 other federal, 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; increased supervisory and regulatory scrutiny of financial institutions; 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, including market volatility, of national and global events, including the response to bank failures, war and geopolitical matters (including the war in Israel and surrounding regions and the war in Ukraine), tariffs and trade wars, 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) (Unaudited) |
As of |
As of |
||||
ASSETS |
03/31/2025 |
12/31/2024 |
||||
|
|
(Audited) |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
81,382 |
|
$ |
53,635 |
|
Interest bearing balances due from banks |
|
111,683 |
|
|
80,763 |
|
Cash and Cash Equivalents |
|
193,065 |
|
|
134,398 |
|
|
|
|
||||
Available-for-sale debt securities, at fair value (amortized cost of $1,373,444 at March 31, 2025 and $1,367,123 at December 31, 2024) |
|
1,259,342 |
|
|
1,231,532 |
|
Held-to-maturity debt securities, at amortized cost (fair value of $274,820 at March 31, 2025 and $267,295 at December 31, 2024) |
|
312,477 |
|
|
312,462 |
|
Equity securities, at fair value |
|
783 |
|
|
768 |
|
Total loans and leases, net of unearned income and deferred costs and fees |
|
6,066,645 |
|
|
6,019,922 |
|
Less: Allowance for credit losses |
|
61,023 |
|
|
56,496 |
|
Net Loans and Leases |
|
6,005,622 |
|
|
5,963,426 |
|
|
|
|
||||
Federal Home Loan Bank and other stock |
|
29,127 |
|
|
42,255 |
|
Bank premises and equipment, net |
|
75,819 |
|
|
76,627 |
|
Corporate owned life insurance |
|
77,063 |
|
|
76,448 |
|
Goodwill |
|
92,602 |
|
|
92,602 |
|
Other intangible assets, net |
|
2,176 |
|
|
2,203 |
|
Accrued interest and other assets |
|
151,577 |
|
|
176,359 |
|
Total Assets |
$ |
8,199,653 |
|
$ |
8,109,080 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
|
3,749,888 |
|
|
3,558,946 |
|
Time |
|
1,183,548 |
|
|
1,068,375 |
|
Noninterest bearing |
|
1,820,066 |
|
|
1,844,484 |
|
Total Deposits |
|
6,753,502 |
|
|
6,471,805 |
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
|
122,985 |
|
|
37,036 |
|
Other borrowings |
|
493,247 |
|
|
790,247 |
|
Other liabilities |
|
88,542 |
|
|
96,548 |
|
Total Liabilities |
$ |
7,458,276 |
|
$ |
7,395,636 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,464,974 at March 31, 2025; and 14,468,013 at December 31, 2024 |
|
1,447 |
|
|
1,447 |
|
Additional paid-in capital |
|
299,013 |
|
|
300,073 |
|
Retained earnings |
|
547,887 |
|
|
537,157 |
|
Accumulated other comprehensive loss |
|
(102,210 |
) |
|
(118,492 |
) |
Treasury stock, at cost – 96,360 shares at March 31, 2025, and 131,497 shares at December 31, 2024 |
|
(4,760 |
) |
|
(6,741 |
) |
Total Equity |
$ |
741,377 |
|
$ |
713,444 |
|
Total Liabilities and Equity |
$ |
8,199,653 |
|
$ |
8,109,080 |
|
TOMPKINS FINANCIAL CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
|||||||
|
03/31/2025 |
12/31/2024 |
03/31/2024 |
|||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|||||
Loans |
$ |
78,630 |
$ |
78,911 |
|
$ |
71,599 |
|
Due from banks |
|
175 |
|
235 |
|
|
154 |
|
Available-for-sale debt securities |
|
8,729 |
|
8,760 |
|
|
9,611 |
|
Held-to-maturity debt securities |
|
1,217 |
|
1,222 |
|
|
1,218 |
|
Federal Home Loan Bank and other stock |
|
711 |
|
894 |
|
|
601 |
|
Total Interest and Dividend Income |
|
89,462 |
$ |
90,022 |
|
$ |
83,183 |
|
INTEREST EXPENSE |
|
|
|
|||||
Time certificates of deposits of $250,000 or more |
|
4,507 |
|
4,698 |
|
|
4,010 |
|
Other deposits |
|
22,143 |
|
22,856 |
|
|
20,424 |
|
Federal funds purchased and securities sold under agreements to repurchase |
|
41 |
|
11 |
|
|
13 |
|
Other borrowings |
|
6,109 |
|
6,176 |
|
|
8,061 |
|
Total Interest Expense |
|
32,800 |
|
33,741 |
|
|
32,508 |
|
Net Interest Income |
|
56,662 |
|
56,281 |
|
|
50,675 |
|
Less: Provision for credit loss expense |
|
5,287 |
|
1,411 |
|
|
854 |
|
Net Interest Income After Provision for Credit Loss Expense |
|
51,375 |
|
54,870 |
|
|
49,821 |
|
NONINTEREST INCOME |
|
|
|
|||||
Insurance commissions and fees |
|
11,599 |
|
8,471 |
|
|
10,259 |
|
Wealth management fees |
|
5,119 |
|
4,878 |
|
|
4,937 |
|
Service charges on deposit accounts |
|
1,805 |
|
1,854 |
|
|
1,796 |
|
Card services income |
|
2,626 |
|
2,919 |
|
|
2,939 |
|
Other income |
|
3,869 |
|
2,740 |
|
|
2,220 |
|
Net gain (loss) on securities transactions |
|
14 |
|
(33 |
) |
|
(14 |
) |
Total Noninterest Income |
|
25,032 |
|
20,829 |
|
|
22,137 |
|
NONINTEREST EXPENSE |
|
|
|
|||||
Salaries and wages |
|
24,977 |
|
25,870 |
|
|
24,697 |
|
Other employee benefits |
|
7,100 |
|
7,429 |
|
|
6,411 |
|
Net occupancy expense of premises |
|
3,570 |
|
2,873 |
|
|
3,557 |
|
Furniture and fixture expense |
|
1,787 |
|
1,834 |
|
|
2,125 |
|
Amortization of intangible assets |
|
84 |
|
90 |
|
|
76 |
|
Other operating expense |
|
13,089 |
|
11,870 |
|
|
12,991 |
|
Total Noninterest Expenses |
|
50,607 |
|
49,966 |
|
|
49,857 |
|
Income Before Income Tax Expense |
|
25,800 |
|
25,733 |
|
|
22,101 |
|
Income Tax Expense |
|
6,121 |
|
6,045 |
|
|
5,198 |
|
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
|
19,679 |
|
19,688 |
|
|
16,903 |
|
Less: Net Income Attributable to Noncontrolling Interests |
|
0 |
|
30 |
|
|
31 |
|
Net Income Attributable to Tompkins Financial Corporation |
$ |
19,679 |
|
19,658 |
|
|
16,872 |
|
Basic Earnings Per Share |
$ |
1.38 |
$ |
1.38 |
|
$ |
1.19 |
|
Diluted Earnings Per Share |
$ |
1.37 |
$ |
1.37 |
|
$ |
1.18 |
|
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
|
|
|
||||||||||||||||||
|
Quarter Ended |
Quarter Ended |
Quarter Ended |
||||||||||||||||||
|
March 31, 2025 |
December 31, 2024 |
March 31, 2024 |
||||||||||||||||||
(dollar amounts in thousands) |
Average
|
Interest |
Average
|
Average
|
Interest |
Average
|
Average
|
Interest |
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing balances due from banks |
$ |
16,424 |
$ |
175 |
|
4.32 |
% |
$ |
19,065 |
$ |
235 |
|
4.90 |
% |
$ |
12,202 |
$ |
154 |
|
5.08 |
% |
Securities1 |
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government securities |
|
1,598,785 |
|
9,441 |
|
2.39 |
% |
|
1,619,973 |
|
9,471 |
|
2.33 |
% |
|
1,756,122 |
|
10,303 |
|
2.36 |
% |
State and municipal2 |
|
85,893 |
|
554 |
|
2.62 |
% |
|
86,481 |
|
557 |
|
2.56 |
% |
|
89,886 |
|
570 |
|
2.55 |
% |
Other Securities2 |
|
3,275 |
|
53 |
|
6.56 |
% |
|
3,287 |
|
55 |
|
6.66 |
% |
|
3,278 |
|
60 |
|
7.32 |
% |
Total securities |
|
1,687,953 |
|
10,048 |
|
2.41 |
% |
|
1,709,741 |
|
10,083 |
|
2.35 |
% |
|
1,849,286 |
|
10,933 |
|
2.38 |
% |
FHLBNY and FRB stock |
|
31,983 |
|
711 |
|
9.01 |
% |
|
30,665 |
|
894 |
|
11.60 |
% |
|
34,613 |
|
601 |
|
6.99 |
% |
Total loans and leases, net of unearned income2,3 |
|
6,025,363 |
|
78,835 |
|
5.31 |
% |
|
5,931,771 |
|
79,126 |
|
5.31 |
% |
|
5,621,604 |
|
71,779 |
|
5.14 |
% |
Total interest-earning assets |
|
7,761,723 |
|
89,769 |
|
4.69 |
% |
|
7,691,242 |
|
90,338 |
|
4.67 |
% |
|
7,517,705 |
|
83,467 |
|
4.47 |
% |
Other assets |
|
294,855 |
|
|
|
282,490 |
|
|
|
283,420 |
|
|
|||||||||
Total assets |
$ |
8,056,578 |
|
|
$ |
7,973,732 |
|
|
$ |
7,801,125 |
|
|
|||||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing checking, savings, & money market |
$ |
3,682,318 |
$ |
16,093 |
|
1.77 |
% |
$ |
3,661,006 |
$ |
17,223 |
|
1.87 |
% |
$ |
3,546,216 |
$ |
15,036 |
|
1.71 |
% |
Time deposits |
|
1,159,039 |
|
10,557 |
|
3.69 |
% |
|
1,076,300 |
|
10,331 |
|
3.82 |
% |
|
988,891 |
|
9,398 |
|
3.82 |
% |
Total interest-bearing deposits |
|
4,841,357 |
|
26,650 |
|
2.23 |
% |
|
4,737,306 |
|
27,554 |
|
2.31 |
% |
|
4,535,107 |
|
24,434 |
|
2.17 |
% |
Federal funds purchased & securities sold under agreements to repurchase |
|
47,653 |
|
41 |
|
0.35 |
% |
|
39,519 |
|
11 |
|
0.11 |
% |
|
48,779 |
|
13 |
|
0.10 |
% |
Other borrowings |
|
561,983 |
|
6,109 |
|
4.41 |
% |
|
534,219 |
|
6,176 |
|
4.60 |
% |
|
622,951 |
|
8,061 |
|
5.21 |
% |
Total interest-bearing liabilities |
|
5,450,993 |
|
32,800 |
|
2.44 |
% |
|
5,311,044 |
|
33,741 |
|
2.53 |
% |
|
5,206,836 |
|
32,508 |
|
2.51 |
% |
Noninterest bearing deposits |
|
1,779,197 |
|
|
|
1,844,772 |
|
|
|
1,831,244 |
|
|
|||||||||
Accrued expenses and other liabilities |
|
98,278 |
|
|
|
101,370 |
|
|
|
96,292 |
|
|
|||||||||
Total liabilities |
|
7,328,468 |
|
|
|
7,257,186 |
|
|
|
7,134,373 |
|
|
|||||||||
Tompkins Financial Corporation Shareholders’ equity |
|
728,110 |
|
|
|
715,299 |
|
|
|
665,333 |
|
|
|||||||||
Noncontrolling interest |
|
0 |
|
|
|
1,247 |
|
|
|
1,419 |
|
|
|||||||||
Total equity |
|
728,110 |
|
|
|
716,546 |
|
|
|
666,752 |
|
|
|||||||||
Total liabilities and equity |
$ |
8,056,578 |
|
|
$ |
7,973,732 |
|
|
$ |
7,801,125 |
|
|
|||||||||
Interest rate spread |
|
|
2.25 |
% |
|
|
2.15 |
% |
|
|
1.95 |
% |
|||||||||
Tax-equivalent net interest income/margin on earning assets |
|
|
56,969 |
|
2.98 |
% |
|
|
56,597 |
|
2.93 |
% |
|
|
50,959 |
|
2.73 |
% |
|||
Tax-equivalent adjustment |
|
|
(307 |
) |
|
|
|
(316 |
) |
|
|
|
(284 |
) |
|
||||||
Net interest income |
|
$ |
56,662 |
|
|
|
$ |
56,281 |
|
|
|
$ |
50,675 |
|
|
||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Period End Balance Sheet |
Mar-25 |
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-24 |
||||||
Securities |
$ |
1,572,602 |
$ |
1,544,762 |
$ |
1,622,526 |
$ |
1,630,654 |
$ |
1,679,542 |
$ |
1,544,762 |
Total Loans |
|
6,066,645 |
|
6,019,922 |
|
5,881,261 |
|
5,761,864 |
|
5,640,524 |
|
6,019,922 |
Allowance for credit losses |
|
61,023 |
|
56,496 |
|
55,384 |
|
53,059 |
|
51,704 |
|
56,496 |
Total assets |
|
8,199,653 |
|
8,109,080 |
|
8,006,427 |
|
7,869,522 |
|
7,778,034 |
|
8,109,080 |
Total deposits |
|
6,753,502 |
|
6,471,805 |
|
6,577,896 |
|
6,285,896 |
|
6,449,616 |
|
6,471,805 |
Brokered deposits |
|
99,763 |
|
0 |
|
20,383 |
|
22,808 |
|
55,010 |
|
0 |
Federal funds purchased and securities sold under agreements to repurchase |
|
122,985 |
|
37,036 |
|
67,506 |
|
35,989 |
|
43,681 |
|
37,036 |
Other borrowings |
|
493,247 |
|
790,247 |
|
539,327 |
|
773,627 |
|
522,600 |
|
790,247 |
Total common equity |
|
741,377 |
|
713,444 |
|
719,855 |
|
674,630 |
|
667,906 |
|
713,444 |
Total equity |
|
741,377 |
|
713,444 |
|
721,348 |
|
676,093 |
|
669,338 |
|
713,444 |
Average Balance Sheet |
|
|
|
|
|
|
||||||
Average earning assets |
$ |
7,761,723 |
$ |
7,691,242 |
$ |
7,638,314 |
$ |
7,547,689 |
$ |
7,517,705 |
$ |
7,599,098 |
Average assets |
|
8,056,578 |
|
7,973,732 |
|
7,914,924 |
|
7,810,061 |
|
7,801,125 |
|
7,875,339 |
Average interest-bearing liabilities |
|
5,450,993 |
|
5,311,044 |
|
5,277,988 |
|
5,215,003 |
|
5,206,836 |
|
5,252,947 |
Average equity |
|
728,110 |
|
716,546 |
|
696,532 |
|
662,969 |
|
666,752 |
|
685,814 |
Share data |
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
|
14,246,140 |
|
14,230,297 |
|
14,215,607 |
|
14,214,574 |
|
14,211,910 |
|
14,218,106 |
Weighted average shares outstanding (diluted) |
|
14,319,440 |
|
14,312,497 |
|
14,283,255 |
|
14,239,626 |
|
14,238,357 |
|
14,268,443 |
Period-end shares outstanding |
|
14,433,873 |
|
14,436,363 |
|
14,394,255 |
|
14,395,204 |
|
14,405,019 |
|
14,436,363 |
Common equity book value per share |
$ |
51.36 |
$ |
49.42 |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
49.42 |
Tangible book value per share (Non-GAAP)** |
$ |
44.88 |
$ |
42.93 |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
42.93 |
**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 |
$ |
56,662 |
$ |
56,281 |
$ |
53,193 |
$ |
50,953 |
$ |
50,675 |
$ |
211,102 |
Provision for credit loss expense |
|
5,287 |
|
1,411 |
|
2,174 |
|
2,172 |
|
854 |
|
6,611 |
Noninterest income |
|
25,032 |
|
20,829 |
|
23,385 |
|
21,776 |
|
22,137 |
|
88,127 |
Noninterest expense |
|
50,607 |
|
49,966 |
|
49,877 |
|
49,942 |
|
49,857 |
|
199,642 |
Income tax expense |
|
6,121 |
|
6,045 |
|
5,858 |
|
4,902 |
|
5,198 |
|
22,003 |
Net income attributable to Tompkins Financial Corporation |
|
19,679 |
|
19,658 |
|
18,638 |
|
15,682 |
|
16,872 |
|
70,850 |
Noncontrolling interests |
|
0 |
|
30 |
|
31 |
|
31 |
|
31 |
|
123 |
Basic earnings per share4 |
|
1.38 |
|
1.38 |
|
1.31 |
|
1.10 |
|
1.19 |
|
4.98 |
Diluted earnings per share4 |
|
1.37 |
|
1.37 |
|
1.30 |
|
1.10 |
|
1.18 |
|
4.97 |
Nonperforming Assets |
|
|
|
|
|
|
||||||
Nonaccrual loans and leases |
$ |
70,891 |
$ |
50,548 |
$ |
62,381 |
$ |
62,253 |
$ |
62,544 |
$ |
50,548 |
Loans and leases 90 days past due and accruing |
|
187 |
|
323 |
|
193 |
|
215 |
|
151 |
|
323 |
Total nonperforming loans and leases |
|
71,078 |
|
50,871 |
|
62,574 |
|
62,468 |
|
62,695 |
|
50,871 |
OREO |
|
81 |
|
14,314 |
|
81 |
|
80 |
|
0 |
|
14,314 |
Total nonperforming assets |
$ |
71,159 |
$ |
65,185 |
$ |
62,655 |
$ |
62,548 |
$ |
62,695 |
$ |
65,185 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
|
Quarter-Ended |
Year-Ended |
||||||||||
Delinquency - Total loan and lease portfolio |
Mar-25 |
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-24 |
||||||
Loans and leases 30-89 days past due and |
|
|
|
|
|
|
||||||
accruing |
$ |
12,285 |
$ |
28,828 |
$ |
7,031 |
$ |
5,286 |
$ |
8,015 |
$ |
28,828 |
Loans and leases 90 days past due and accruing |
|
187 |
|
323 |
|
193 |
|
215 |
|
151 |
|
323 |
Total loans and leases past due and accruing |
|
12,472 |
|
29,151 |
|
7,224 |
|
5,501 |
|
8,166 |
|
29,151 |
Allowance for Credit Losses |
||||||||||||
Balance at beginning of period |
$ |
56,496 |
$ |
55,384 |
$ |
53,059 |
$ |
51,704 |
$ |
51,584 |
$ |
51,584 |
Provision for credit losses |
|
5,260 |
|
1,969 |
|
3,237 |
|
1,864 |
|
348 |
$ |
7,418 |
Net loan and lease charge-offs (recoveries) |
|
733 |
|
857 |
|
912 |
|
509 |
|
228 |
$ |
2,506 |
Allowance for credit losses at end of period |
$ |
61,023 |
$ |
56,496 |
$ |
55,384 |
$ |
53,059 |
$ |
51,704 |
$ |
56,496 |
|
|
|
|
|
|
|
||||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
||||||||||||
Balance at beginning of period |
$ |
1,463 |
$ |
2,021 |
$ |
3,084 |
$ |
2,776 |
$ |
2,270 |
$ |
2,270 |
Provision (credit) for credit losses |
|
27 |
|
(558) |
|
(1,063) |
|
308 |
|
506 |
$ |
(807) |
Allowance for credit losses at end of period |
$ |
1,490 |
$ |
1,463 |
$ |
2,021 |
$ |
3,084 |
$ |
2,776 |
$ |
1,463 |
Loan Classification - Total Portfolio |
|
|
|
|
|
|
||||||
Special Mention |
$ |
34,790 |
$ |
36,923 |
$ |
58,758 |
$ |
48,712 |
$ |
46,302 |
$ |
36,923 |
Substandard |
|
75,980 |
|
74,163 |
|
67,261 |
|
67,509 |
|
72,412 |
|
74,163 |
Ratio Analysis
Credit Quality |
|
|
|
|
|
|
||||||
Nonperforming loans and leases/total loans and leases |
1.17 |
% |
0.85 |
% |
1.06 |
% |
1.08 |
% |
1.11 |
% |
0.85 |
% |
Nonperforming assets/total assets |
0.87 |
% |
0.80 |
% |
0.78 |
% |
0.79 |
% |
0.81 |
% |
0.80 |
% |
Allowance for credit losses/total loans and leases |
1.01 |
% |
0.94 |
% |
0.94 |
% |
0.92 |
% |
0.92 |
% |
0.94 |
% |
Allowance/nonperforming loans and leases |
85.85 |
% |
111.06 |
% |
88.51 |
% |
84.94 |
% |
82.47 |
% |
111.06 |
% |
Net loan and lease losses (recoveries) annualized/total average loans and leases |
0.05 |
% |
0.06 |
% |
0.06 |
% |
0.04 |
% |
0.02 |
% |
0.04 |
% |
Capital Adequacy |
|
|
|
|
|
|
||||||
Tier 1 Capital (to average assets) |
9.31 |
% |
9.27 |
% |
9.19 |
% |
9.15 |
% |
9.08 |
% |
9.27 |
% |
Total Capital (to risk-weighted assets) |
13.28 |
% |
13.07 |
% |
13.21 |
% |
13.26 |
% |
13.43 |
% |
13.07 |
% |
Profitability (period-end) |
|
|
|
|
|
|
||||||
Return on average assets * |
0.99 |
% |
0.98 |
% |
0.94 |
% |
0.81 |
% |
0.87 |
% |
0.90 |
% |
Return on average equity * |
10.96 |
% |
10.91 |
% |
10.65 |
% |
9.51 |
% |
10.18 |
% |
10.33 |
% |
Net interest margin (TE) * |
2.98 |
% |
2.93 |
% |
2.79 |
% |
2.73 |
% |
2.73 |
% |
2.79 |
% |
Average yield on interest-earning assets* |
4.69 |
% |
4.67 |
% |
4.66 |
% |
4.56 |
% |
4.47 |
% |
4.59 |
% |
Average cost of deposits* |
1.63 |
% |
1.67 |
% |
1.67 |
% |
1.61 |
% |
1.54 |
% |
1.62 |
% |
Average cost of funds* |
1.84 |
% |
1.88 |
% |
2.01 |
% |
1.96 |
% |
1.86 |
% |
1.92 |
% |
* 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 U.S. generally accepted accounting principles (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 table. 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 |
||||||||||
|
Mar-25 |
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-24 |
||||||
Common equity book value per share (GAAP) |
$ |
51.36 |
$ |
49.42 |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
49.42 |
Total common equity |
$ |
741,377 |
$ |
713,444 |
$ |
719,855 |
$ |
674,630 |
$ |
667,906 |
$ |
713,444 |
Less: Goodwill and intangibles |
|
93,586 |
|
93,670 |
|
93,760 |
|
93,847 |
|
93,926 |
|
93,670 |
Tangible common equity (Non-GAAP) |
|
647,791 |
|
619,774 |
|
626,095 |
|
580,783 |
|
573,980 |
|
619,774 |
Ending shares outstanding |
|
14,433,873 |
|
14,436,363 |
|
14,394,255 |
|
14,395,204 |
|
14,405,019 |
|
14,436,363 |
Tangible book value per share (Non-GAAP) |
$ |
44.88 |
$ |
42.93 |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
42.93 |
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 2025 and 2024 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, 2024. |
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250425856575/en/
Contacts
For more information:
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753
