Tompkins Financial Corporation (NYSE Amex: TMP)
Tompkins Financial Corporation reported record first quarter net
income of $8.8 million for the first quarter of 2011, an increase
of 4.2% from the $8.4 million reported for the same period in 2010.
Diluted earnings per share were $0.80 for the first quarter of
2011, a 2.6% increase from the $0.78 reported for the first quarter
of 2010.
President and CEO Stephen S. Romaine commented, “We are very
pleased to report that first quarter earnings represented the best
first quarter in our Company’s history. Results for the quarter
benefited from our diversified revenue stream, as growth in wealth
management fees, insurance commission, and card services fees
helped offset a decline in net interest income.”
Selected highlights for the first quarter of 2011 are included
below:
- Capital levels showed continued growth
during the quarter and ratios remain well above the regulatory well
capitalized minimums. Tier I capital as a percentage of average
assets was 8.22%; and the ratio of total capital to risk-weighted
assets of 13.66%. These ratios are up from 8.02% and 13.42%,
respectively at December 31, 2010.
- Total loans were $1.9 billion at March
31, 2011, up $27.3 million or 1.5% from March 31, 2010.
- The level of nonperforming assets
declined for the second consecutive quarter, although nonperforming
assets levels remain above the totals reported at March 31, 2010.
The ratio of nonperforming assets to total assets of 1.40% at March
31, 2011, continues to be well below the most recent peer averages
published by the Federal Reserve and we were continuing to receive
regular payments on approximately 69% of loan balances that we
categorize as nonperforming.
- Total deposits were $2.6 billion at
quarter end, up 4.0% from the same period in 2010.
Noninterest-bearing deposits totaled $520.6 million at March 31,
2011, an increase of 18.6% over the first quarter of 2010.
- Other borrowings of $140.4 million at
March 31, 2011 were down 26.3% from March 31, 2010, as deposit
growth was used to pay down overnight borrowings with the
FHLB.
- The net interest margin for the first
quarter of 2011 was 3.78% compared to 3.95% for the first quarter
of 2010. Despite the decline in net interest margin, net interest
income of $27.5 million for the first quarter of 2011 was down less
than 1.5% when compared to the same quarter last year due to growth
in earning assets (primarily in the securities portfolio).
- Noninterest income was $12.5 million
for the quarter, up 10.4% from the same period prior year. Fee
income from investment services, insurance, and card services were
all up for the quarter, while service charges on deposit accounts
declined. Other income in the first quarter of 2011 included a
$504,000 gain related to an investment in a Small Business
Investment Company.
- Noninterest expense was $25.2 million
for the quarter, up 2.9% from the first quarter of 2010. The
increase was mainly centered in salaries and employee
benefits.
- The provision for loan and lease losses
was $1.9 million in the first quarter of 2011, compared to $2.2
million in the first quarter of 2010. Net charge-offs for the
quarter of $1.7 million are up over the $1.2 million recorded for
the same quarter last year, yet remain well below the most recent
peer averages published by the Federal Reserve.
- The Company’s allowance for loan and
lease losses totaled $28.0 million at March 31, 2011, which
represented 1.46% of total loans, compared to $27.8 million and
1.46% at December 31, 2010 and $25.4 million and 1.34% at March 31,
2010. The allowance for loan and lease losses, as a percentage of
nonperforming loans improved during the most recent quarter to
64.33% from 61.46% in December 2010.
Mr. Romaine added, “Although the business and regulatory
climates remain challenging, we are encouraged by these first
quarter results that showed growth in earnings, revenue, and
capital over the same period last year. As we celebrate our
Company’s 175th anniversary in 2011, we remain more committed than
ever to our strategy of long term sustainable growth that has
served us so well during the most recent, and many previous,
economic downturns.”
Tompkins Financial Corporation operates 45 banking offices in
the New York State markets served by the Company's three community
banks - Tompkins Trust Company, The Bank of Castile, and Mahopac
National Bank, insurance through Tompkins Insurance Agencies, Inc.
and wealth management through Tompkins Financial Advisors.
"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.
_______________________________________________________________________________
1 Federal Reserve peer ratio as of December 31, 2010, includes
banks and bank holding companies with consolidated assets between
$3 billion and $10 billion.
TOMPKINS FINANCIAL CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CONDITION (In thousands,
except share and per share data) (Unaudited)
As of As
of ASSETS 03/31/2011 12/31/2010
Cash and noninterest bearing balances due from banks $ 40,009
$
47,339 Interest bearing balances due from banks 7,605 2,226 Federal
funds sold 17,400 0 Money market funds 100
100
Cash and Cash Equivalents
65,114 49,665 Trading securities, at fair
value 21,831 22,837 Available-for-sale securities, at fair value
1,049,504 1,039,608 Held-to-maturity securities, fair value of
$51,258 at March 31, 2011, and $56,064 at December 31, 2010 50,108
54,973 Loans and leases, net of unearned income and deferred costs
and fees 1,914,344 1,910,358 Less: Allowance for loan and lease
losses 28,035 27,832
Net Loans and Leases 1,886,309 1,882,526
Federal Home Loan Bank stock and Federal Reserve Bank stock
17,575 21,985 Bank premises and equipment, net 44,867 46,103
Corporate owned life insurance 41,935 40,024 Goodwill 41,649 41,649
Other intangible assets, net 4,039 4,207 Accrued interest and other
assets 55,963 56,766
Total Assets $ 3,278,894
$
3,260,343 LIABILITIES Deposits:
Interest bearing: Checking, savings and money market 1,348,182
1,230,815 Time 743,720 741,829 Noninterest bearing
520,615 523,229
Total Deposits
2,612,517 2,495,873 Federal funds purchased
and securities sold under agreements to repurchase 182,009 183,609
Other borrowings, including certain amounts at fair value of
$11,454 at March 31, 2011 and $11,629 at December 31, 2010 140,353
244,193 Trust preferred debentures 25,061 25,060 Other liabilities
36,717 38,200
Total
Liabilities $ 2,996,657
$ 2,986,935 EQUITY Tompkins
Financial Corporation shareholders' equity: Common Stock - par
value $.10 per share: Authorized 25,000,000 shares; Issued:
10,988,320 at March 31, 2011; and 10,934,385 at December 31, 2010
1,099 1,093 Additional paid-in capital 200,444 198,114 Retained
earnings 81,513 76,446 Accumulated other comprehensive income
(loss) 19 (1,260 ) Treasury stock, at cost – 88,400 shares at March
31, 2011, and 92,025 shares at December 31, 2010 (2,323 ) (2,437 )
Total Tompkins Financial Corporation Shareholders’
Equity 280,752 271,956 Noncontrolling interests
1,485 1,452
Total
Equity $ 282,237 $
273,408 Total Liabilities and Equity
$ 3,278,894 $ 3,260,343
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months
Ended (In thousands, except per share data) (Unaudited)
03/31/2011 03/31/2010 INTEREST AND DIVIDEND
INCOME Loans $ 25,701 $ 26,618 Due from banks 6 12 Federal
funds sold 3 4 Trading securities 235 309 Available-for-sale
securities 7,687 9,000 Held-to-maturity securities 365 407 Federal
Home Loan Bank stock and Federal Reserve Bank stock
290 284
Total Interest and Dividend
Income 34,287
36,634 INTEREST EXPENSE Time certificates of
deposits of $100,000 or more 849 1,178 Other deposits 2,625 3,827
Federal funds purchased and repurchase agreements 1,291 1,425 Trust
preferred debentures 405 367 Other borrowings 1,575
1,893
Total Interest Expense
6,745 8,690
Net Interest Income 27,542
27,944 Less: Provision for loan/lease
losses 1,910 2,183
Net
Interest Income After Provision for Loan/Lease Losses
25,632 25,761
NONINTEREST INCOME Investment services income 3,841 3,738
Insurance commissions and fees 3,374 3,166 Service charges on
deposit accounts 1,984 2,057 Card services income 1,245 975
Mark-to-market (loss) gain on trading securities (50 ) 90
Mark-to-market gain (loss) on liabilities held at fair value 174
(128 ) Other income 1,829 1,304 Net gain on securities transactions
95 118
Total
Noninterest Income 12,492
11,320 NONINTEREST EXPENSES Salaries
and wages 10,825 10,339 Pension and other employee benefits 4,031
3,911 Net occupancy expense of premises 1,894 1,881 Furniture and
fixture expense 1,038 1,183 FDIC insurance 1,050 911 Amortization
of intangible assets 170 202 Other operating expense
6,208 6,067
Total Noninterest
Expenses 25,216
24,494 Income Before Income Tax Expense
12,908 12,587
Income Tax Expense 4,102
4,138
Net Income attributable to Noncontrolling Interests
and Tompkins Financial Corporation 8,806
8,449 Less: Net income
attributable to noncontrolling interests 33
33
Net Income Attributable to Tompkins
Financial Corporation $ 8,773
$ 8,416 Basic Earnings Per Share
$ 0.80 $ 0.78 Diluted Earnings Per
Share $ 0.80 $
0.78
Average Consolidated Balance Sheet and Net Interest Analysis
Year to Date Period Ended Year to Date Period Ended
March 31, 2011 March
31, 2010 Average Average Balance Average Balance Average
(Dollar amounts in thousands) (YTD)
Interest Yield/Rate (YTD)
Interest Yield/Rate
ASSETS Interest-earning assets
Interest-bearing balances due from banks $ 16,151 $ 6 0.15 % $
37,885 $ 12 0.13 % Money market funds 100 - 0.00 % 100 - 0.00 %
Securities (1) U.S. Government securities 928,576 6,988 3.05 %
827,808 8,219 4.03 % Trading securities 22,542 235 4.23 % 31,279
309 4.01 % State and municipal (2) 112,328 1,447 5.22 % 105,139
1,573 6.07 % Other securities (2) 15,237 180
4.79 % 18,563 224
4.89 % Total securities 1,078,683 8,850 3.33 % 982,789
10,325 4.26 % Federal Funds Sold 8,767 3 0.14 % 9,080 4 0.18 %
FHLBNY and FRB stock 18,923 290 6.21 % 19,633 284 5.87 % Loans, net
of unearned income (3) Real estate 1,368,589 18,429 5.46 %
1,327,849 18,840 5.75 % Commercial loans (2) 456,691 6,022 5.35 %
472,900 6,260 5.37 % Consumer loans 72,532 1,254 7.01 % 84,083
1,460 7.04 % Direct lease financing 8,752 131
6.07 % 11,634 176
6.14 % Total loans, net of unearned income 1,906,564
25,836 5.50 % 1,896,466
26,736 5.72 %
Total interest-earning
assets 3,029,188 34,985
4.68 % 2,945,953
37,361 5.14 %
Other assets 223,379 227,111
Total assets
3,252,567 3,173,064
LIABILITIES & EQUITY
Deposits Interest-bearing deposits Interest bearing checking,
savings, & money market 1,309,121 1,171 0.36 % 1,229,168 1,790
0.59 % Time deposits > $100,000 309,746 849 1.11 % 335,260 1,178
1.42 % Time deposits < $100,000 424,028 1,434 1.37 % 429,464
1,873 1.77 % Brokered time deposits < $100,000 6,074
20 1.34 % 37,242
164 1.79 % Total interest-bearing deposits
2,048,969 3,474 0.69 % 2,031,134 5,005 1.00 % Federal funds
purchased & securities sold under agreements to repurchase
185,456 1,291 2.82 % 187,753 1,425 3.08 % Other borrowings 171,659
1,575 3.72 % 199,202 1,893 3.85 % Trust preferred debentures
25,061 405 6.55 % 25,056
367 5.94 %
Total interest-bearing
liabilities 2,431,145 6,745 1.13 %
2,443,145 8,690 1.44 %
Noninterest bearing deposits 507,673 440,113 Accrued expenses and
other liabilities 36,466 40,220
Total liabilities 2,975,284
2,923,478 Tompkins Financial Corporation Shareholders’
equity 275,814 248,119 Noncontrolling interest 1,469 1,467
Total
equity 277,283 249,586 Total
liabilities and equity $ 3,252,567 $
3,173,064 Interest rate spread
3.55
% 3.70 % Net interest
income/margin on earning assets
28,240 3.78 %
28,671 3.95 % Tax Equivalent Adjustment
(698 ) (727 ) Net interest
income per consolidated financial statements
$ 27,542
$ 27,944 (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 a combined
New York State and Federal effective income tax rate of 40% 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 condensed consolidated financial statements included in
Part I of the
Company's annual report on Form 10-K for
the fiscal year ended December 31, 2010.
Tompkins Financial
Corporation - Summary Financial Data (Unaudited)
(In thousands, except per
share data
Quarter-Ended Year-Ended
Mar-11 Dec-10 Sep-10
Jun-10 Mar-10 Dec-10
Period End Balance Sheet
Securities $ 1,121,443 $
1,117,418 $ 1,053,038 $ 1,023,220 $ 1,026,301
$ 1,117,418 Loans and leases, net of unearned income and
deferred costs and fees 1,914,344
1,910,358 1,914,064 1,900,303
1,887,038 1,910,358 Allowance for loan and
lease losses 28,035 27,832
28,684 26,530 25,366
27,832 Total assets 3,278,894
3,260,343 3,247,111 3,161,648
3,206,763 3,260,343
Total deposits
2,612,517 2,495,873
2,528,528 2,460,223 2,512,201
2,495,873 Federal funds purchased and securities sold under
agreements to repurchase 182,009
183,609 191,596 175,336
181,255 183,609 Other borrowings
140,353 244,193 182,779
189,561 190,545 244,193 Trust preferred
debentures 25,061 25,060
25,059 25,058 25,057
25,060 Shareholders' equity 282,237
273,408 276,495 268,683
254,444 273,408
Average Balance Sheet
Average earning assets $ 3,029,188 $ 3,010,361
$ 2,937,795 $ 2,953,673 $ 2,945,953 $
2,962,056 Average assets 3,252,567
3,243,822 3,168,478 3,181,476
3,173,064 3,191,840 Average interest-bearing
liabilities 2,431,145 2,424,998
2,372,630 2,424,245 2,443,145
2,416,085 Average equity 277,283
280,051 273,517 260,197
249,586 265,943
Share data
Weighted average shares outstanding (basic)
10,905,197 10,888,138 10,845,106
10,818,218 10,724,644 10,812,502
Weighted average shares outstanding (diluted)
10,955,430 10,936,042 10,893,642
10,876,421 10,776,934 10,864,450
Period-end shares outstanding 10,953,410
10,898,475 10,878,813 10,830,001
10,793,573 10,898,475 Book value per
share 25.77 25.09 25.42
24.81 23.57 25.09
Income Statement
Net interest income $ 27,542 $
27,861 $ 27,864 $ 28,106 $ 27,944 $
111,775 Provision for loan/lease losses 1,910
1,433 3,483 1,408
2,183 8,507 Noninterest income 12,492
12,281 11,227 11,331
11,320 46,159 Noninterest expense
25,216 25,183 24,852
24,516 24,494 99,045
Income tax expense 4,102 4,602
3,233 4,447 4,138
16,420 Net income attributable to Tompkins Financial Corporation
8,773 8,892 7,490
9,033 8,416 33,831
Noncontrolling interests 33 32
33 33 33 131 Basic
earnings per share $ 0.80 $ 0.82 $ 0.69
$ 0.84 $ 0.78 $ 3.13 Diluted earnings per share
$ 0.80 $ 0.81 $ 0.69 $ 0.83 $
0.78 $ 3.11
Asset Quality
Net charge-offs
1,707 2,285 1,329
244 1,167 5,025 Nonaccrual loans and
leases 39,902 41,501
48,966 33,645 29,521
41,501 Loans and leases 90 days past due and accruing
1,266 1,217 1,737 1,758
51 1,217 Troubled debt restructurings
not included above 2,411 2,564
3,264 3,264 3,703
2,564 Total nonperforming loans and leases 43,579
45,282 53,967 38,667
33,275 45,282 OREO 2,270
1,255 1,845 1,638
558 1,255 Nonperforming assets
45,849 46,537 55,812
40,305 33,833 46,537
RATIO
ANALYSIS Quarter-Ended Year-Ended
Credit Quality Mar-11 Dec-10
Sep-10 Jun-10 Mar-10
Dec-10 Net loan and lease losses/ average loans
and
leases * 0.36% 0.48%
0.28% 0.05% 0.25% 0.26%
Nonperforming loans and leases/loans and leases 2.28%
2.37% 2.82% 2.03%
1.76% 2.37% Nonperforming assets/assets
1.40% 1.43% 1.72%
1.27% 1.06% 1.43%
Allowance/nonperforming loans and leases 64.33%
61.46% 53.15% 68.61%
76.23% 61.46% Allowance/loans and
leases 1.46% 1.46% 1.50%
1.40% 1.34% 1.46%
Capital Adequacy (period-end)
Tier I capital / average assets
8.22% 8.02% 8.01%
7.77% 7.56% 8.02% Total capital
/ risk-weighted assets 13.66% 13.42%
13.14% 13.10% 12.56%
13.42%
Profitability
Return on average
assets * 1.09% 1.09%
0.94% 1.14% 1.08% 1.06%
Return on average equity * 12.83%
12.60% 10.86% 13.92%
13.68% 12.72% Net interest margin (TE) *
3.78% 3.75% 3.85%
3.91% 3.95% 3.86% * Quarterly ratios
have been annualized
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