Tompkins Financial Corporation (TMP–NYSE Amex)
Tompkins Financial Corporation reported net income of $7.8
million for the first quarter of 2012, a decrease of 11.0% from the
$8.8 million reported for the same period in 2011. Diluted earnings
per share were $0.70 for the first quarter of 2012, a 12.5%
decrease from $0.80 reported for the first quarter of 2011.
Stephen S. Romaine, President and CEO stated, “Quarterly
earnings results were negatively impacted by the continued weak
economic climate. Loan demand has remained slow and the low rate
environment continues to put pressure on net interest margin. We
are encouraged that despite pressure on net interest margin, net
interest income remained relatively stable over the last twelve
months and we continue to see improving trends in credit
quality.”
Selected highlights for the first quarter:
- Return on average equity was 10.35% for
the first quarter of 2012.
- Total loans were $2.0 billion at March
31, 2012, relatively unchanged from December 31, 2011, and up $63.2
million or 3.3% from March 31, 2011.
- Total deposits were $2.9 billion at
March 31, 2012, up 7.5% from December 31, 2011, and up 9.5% from
March 31, 2011.
- The net interest margin for the first
quarter of 2012 was 3.51%, compared to 3.62% for the fourth quarter
of 2011, and 3.78% for the first quarter of 2011. Despite the
decline in net interest margin over the past 12 months, net
interest income of $27.4 million for the first quarter of 2012
remains generally in line with the same period in 2011. Growth in
interest earning assets, primarily in the securities portfolio, and
funded primarily with core deposits, has helped mitigate the
earnings impact from the decline in margin.
- Noninterest income was down 6.7% for
the quarter, when compared to the same period in 2011. Card
services income and insurance commissions and fees were up from the
prior year. Investment services income and deposits services fees
were down from the same period last year. A majority of the decline
in investment services revenue was the result of a planned decrease
in the number of external broker dealer relationships, which was
implemented in the third quarter of 2011. Other negative variances
compared to the first quarter of 2011 included: a $118,000 decline
in net mark-to-market gains on securities and liabilities held at
fair value; a $93,000 decline in net realized gains on securities
transactions; and a $565,000 decline in other income primarily from
lower gains on the sale of residential mortgage loans and reduced
income from the Company's investment in a small business investment
company.
- Noninterest expense for the first
quarter of 2012 was $26.4 million, up 4.6% from the same period
last year. Salaries and wages were up in part due to normal salary
increases and in part due to higher incentive accruals for business
development activities. Lower interest rates have contributed to
the increase in the cost of pension and employee benefits. The
increase in other operating expense was impacted by approximately
$94,000 in expenses related to the pending merger with VIST
Financial, and $310,000 related to marketing and business
development. Increased expenses in the above categories were
partially offset by a reduction in FDIC insurance costs.
- Provision for loan and lease losses was
$1.1 million for the first quarter of 2012, down from $1.2 million
in the fourth quarter of 2011, and $1.9 million in the first
quarter of 2011.
- Nonperforming assets were $42.3 million
at March 31, 2012, and have remained relatively flat over the last
four quarters. The ratio of nonperforming assets to total assets of
1.19% at March 31, 2012, has improved for six consecutive quarters
and remains well below the most recent peer averages of 2.87%
published as of December 31, 2011, by the Federal Reserve1. The
Company continues to receive regular payments on over of loan
balances that we categorize as nonperforming.
- The Company’s allowance for loan and
lease losses totaled $26.9 million at March 31, 2012, which
represented 1.36% of total loans, compared to $27.6 million and
1.39% at December 31, 2011. The allowance for loan and lease losses
covered 66.65% of nonperforming loans as of March 31, 2012,
unchanged from December 31, 2011.
- Capital ratios remain well above the
regulatory well capitalized minimums. Tier 1 capital as a
percentage of average assets at March 31, 2012 was 8.46%; and the
ratio of total capital to risk-weighted assets was 14.37%.
Mr. Romaine, added, “The first quarter of 2012 was very
significant in preparing us for continued success into the future.
We announced the planned acquisition with VIST Financial
Corporation and are excited by the opportunities as we expand our
business into new markets. We remain on track to close this
transaction during the third quarter of this year, pending required
approvals. We also announced in March that we were successful in
raising $38.2 million in equity capital, net of transaction costs,
which closed on April 3, 2012. With this new capital, we are well
positioned to pursue responsible growth opportunities and manage
risk in the continued volatile market environment.”
Tompkins Financial Corporation operates 46 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, and provides 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, 2012, 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 03/31/2012 12/31/2011 Cash and
noninterest bearing balances due from banks $ 102,163 $ 47,297
Interest bearing balances due from banks 1,154 2,170 Money market
funds 0 100
Cash and Cash
Equivalents 103,317 49,567 Trading
securities, at fair value 18,766 19,598 Available-for-sale
securities, at fair value 1,240,598 1,143,546
Held-to-maturity securities, fair value of
$26,849 at March 31, 2012, and $27,255 at December 31, 2011
26,321 26,673 Loans and leases, net of unearned income and deferred
costs and fees 1,977,569 1,981,849 Less: Allowance for loan and
lease losses 26,948 27,593
Net Loans
and Leases 1,950,621 1,954,256 Federal
Home Loan Bank stock and Federal Reserve Bank stock 16,460 19,070
Bank premises and equipment, net 45,200 44,712 Corporate owned life
insurance 43,473 43,044 Goodwill 44,653 43,898 Other intangible
assets, net 3,916 4,096 Accrued interest and other assets
53,369 51,788
Total Assets
$ 3,546,694 $ 3,400,248
LIABILITIES Deposits: Interest bearing: Checking, savings
and money market 1,524,978 1,356,870 Time 729,107 687,321
Noninterest bearing 605,351 616,373
Total Deposits 2,859,436 2,660,564
Federal funds purchased and securities sold under agreements to
repurchase 169,456 169,090
Other borrowings, including certain
amounts at fair value of $12,005 at March 31, 2012 and $12,093 at
December 31, 2011
132,884 186,075 Trust preferred debentures 25,066 25,065 Other
liabilities 53,885 60,311
Total
Liabilities $ 3,240,727 $
3,101,105 EQUITY
Tompkins Financial Corporation
shareholders' equity:
Common Stock - par value $.10 per share:
Authorized 25,000,000 shares; Issued: 11,233,280 at March 31, 2012;
and 11,159,466 at December 31, 2011
1,123 1,116 Additional paid-in capital 209,472 206,395 Retained
earnings 100,251 96,445 Accumulated other comprehensive loss
(3,837) (3,677)
Treasury stock, at cost – 93,433 shares at
March 31, 2012, and 95,105 shares at December 31, 2011
(2,527) (2,588)
Total Tompkins Financial Corporation
Shareholders’ Equity 304,482 297,691
Noncontrolling interests 1,485 1,452
Total Equity $ 305,967 $
299,143 Total Liabilities and Equity $
3,546,694 $ 3,400,248 TOMPKINS
FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
INCOME Three Months Ended (In thousands, except
per share data) (Unaudited)
03/31/2012
03/31/2011 INTEREST AND DIVIDEND INCOME Loans $
25,303 $ 25,701 Due from banks 3 6 Federal funds sold 2 3 Trading
securities 198 235 Available-for-sale securities 7,176 7,687
Held-to-maturity securities 225 365 Federal Home Loan Bank stock
and Federal Reserve Bank stock 221 290
Total Interest and Dividend
Income
33,128 34,287 INTEREST
EXPENSE Time certificates of deposits of $100,000 or more 734
849 Other deposits 2,027 2,625 Federal funds purchased and
securities sold under agreements to repurchase 1,092 1,291 Trust
preferred debentures 405 405 Other borrowings 1,429
1,575
Total Interest Expense
5,687 6,745 Net Interest Income
27,441 27,542 Less:
Provision for loan and lease losses 1,125
1,910
Net Interest Income After Provision for Loan and
Lease Losses 26,316
25,632 NONINTEREST INCOME Investment services income
3,397 3,841 Insurance commissions and fees 3,638 3,374 Service
charges on deposit accounts 1,785 1,984 Card services income 1,569
1,245 Mark-to-market loss on trading securities (82) (50)
Mark-to-market gain on liabilities held at fair value 88 174 Other
income 1,264 1,829 Net gain on securities transactions
2 95
Total Noninterest Income
11,661 12,492 NONINTEREST
EXPENSES Salaries and wages 11,300 10,825 Pension and other
employee benefits 4,299 4,031 Net occupancy expense of premises
1,805 1,894 Furniture and fixture expense 1,100 1,038 FDIC
insurance 528 1,050 Amortization of intangible assets 133 170 Other
operating expense 7,206 6,208
Total
Noninterest Expenses 26,371
25,216 Income Before Income Tax Expense
11,606 12,908 Income Tax Expense
3,762 4,102
Net Income attributable
to Noncontrolling Interests and Tompkins Financial Corporation
7,844 8,806 Less: Net
income attributable to noncontrolling interests 33
33
Net Income Attributable to Tompkins Financial
Corporation $ 7,811 $
8,773 Basic Earnings Per Share $ 0.70
$ 0.80 Diluted Earnings Per Share
$ 0.70 $ 0.80 Average
Consolidated Statements of Condition and Net Interest Analysis
Year to Date Period Ended Year to Date
Period Ended March 31, 2012
March 31, 2011 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 $ 38,652 $ 3 0.03% $ 16,151 $ 6 0.15% Money
market funds 73 - 0.00% 100 - 0.00% Securities (1) U.S. Government
securities 1,061,800 6,577 2.49% 928,576 6,988 3.05% Trading
securities 19,352 198 4.12% 22,542 235 4.23% State and municipal
(2) 83,113 1,129 5.46% 112,328 1,447 5.22% Other securities
12,051 139 4.64% 15,237
180 4.79% Total securities 1,176,316 8,043 2.75%
1,078,683 8,850 3.33% Federal Funds Sold 7,376 2 0.11% 8,767 3
0.14% FHLBNY and FRB stock 16,722 221 5.32% 18,923 290 6.21% Loans,
net of unearned income (3) Real estate 1,437,328 18,231 5.10%
1,368,589 18,429 5.46% Commercial loans (2) 466,753 6,091 5.25%
456,691 6,022 5.35% Consumer loans 62,551 1,034 6.65% 72,532 1,254
7.01% Direct lease financing 5,762 83
5.79% 8,752 131 6.07% Total
loans, net of unearned income 1,972,394 25,439
5.19% 1,906,564 25,836
5.50%
Total interest-earning assets 3,211,533
33,708
4.22%
3,029,188 34,985 4.68%
Other assets 253,384 223,361
Total assets
3,464,917 3,252,549
LIABILITIES & EQUITY
Deposits Interest-bearing deposits Interest bearing checking,
savings, & money market 1,458,332 1,004 0.28% 1,309,121 1,171
0.36% Time deposits > $100,000 333,061 734 0.89% 309,746 849
1.11% Time deposits < $100,000 382,098 1,023 1.08% 424,028 1,434
1.37% Brokered time deposits < $100,000 - -
0.00% 6,074 20 1.34%
Total interest-bearing deposits 2,173,491 2,761 0.51% 2,048,969
3,474 0.69%
Federal funds purchased & securities
sold under agreements to repurchase
169,903 1,092 2.59% 185,456 1,291 2.82% Other borrowings 138,687
1,429 4.14% 171,659 1,575 3.72% Trust preferred debentures
25,065 405 6.50% 25,061
405 6.55%
Total interest-bearing liabilities
2,507,146 5,687 0.91% 2,431,145
6,745 1.13% Noninterest bearing deposits
596,416 507,660 Accrued expenses and other liabilities 57,809
36,461
Total liabilities 3,161,371 2,975,266 Tompkins
Financial Corporation Shareholders’ equity 302,077 275,814
Noncontrolling interest 1,469 1,469
Total equity
303,546 277,283 Total liabilities and
equity $ 3,464,917 $ 3,252,549
Interest rate spread
3.31%
3.55% Net interest income/margin on earning assets
28,021 3.51% 28,240 3.78% Tax
Equivalent Adjustment
(580) (698) Net interest
income per consolidated financial statements
$ 27,441
$ 27,542
(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 consolidated financial statements included in Part I of
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2011.
Tompkins Financial Corporation - Summary Financial Data
(Unaudited) (In
thousands, except per share data)
Quarter-Ended
Year-Ended Mar-12 Dec-11
Sep-11 Jun-11 Mar-11 Dec-11
Period End Balance Sheet
Securities $ 1,285,685
$ 1,189,817 $ 1,130,769 $ 1,138,563 $
1,121,443 $ 1,189,817 Loans and leases, net of unearned
income and deferred costs and fees 1,977,569
1,981,849 1,951,598 1,920,716
1,914,344 1,981,849 Allowance for loan
and lease losses 26,948 27,593
27,878 28,361 28,035
27,593 Total assets 3,546,694
3,400,248 3,359,017 3,287,598
3,278,894 3,400,248
Total deposits
2,859,436 2,660,564
2,675,674 2,572,008 2,612,517
2,660,564 Federal funds purchased and securities sold under
agreements to repurchase 169,456
169,090 171,943 178,545
182,009 169,090 Other borrowings
132,884 186,075 138,001
172,643 140,353 186,075 Trust preferred
debentures 25,066 25,065
25,063 25,062 25,061
25,065 Shareholders' equity 305,967
299,143 309,335 300,060
282,237 299,143
Average Balance Sheet
Average earning assets $ 3,211,533 $ 3,131,051
$ 3,050,346 $ 3,047,494 $ 3,029,188 $
3,064,761 Average assets 3,464,917
3,368,135 3,286,159 3,271,895
3,252,549 3,294,982 Average interest-bearing
liabilities 2,507,146 2,435,326
2,391,576 2,432,556 2,431,145
2,422,577 Average equity 303,546
307,539 303,861 288,341
277,283 294,620
Share data
Weighted average shares outstanding (basic)
11,103,192 11,074,330 11,049,831
10,974,615 10,905,197 11,002,106
Weighted average shares outstanding (diluted)
11,147,489 11,104,623 11,124,331
11,016,515 10,955,430 11,035,384
Period-end shares outstanding 11,197,370
11,123,556 11,122,886 11,051,894
10,952,410 11,123,556 Book value per
share 27.32 26.89 27.81
27.15 25.77 26.89
Income Statement
Net interest income $ 27,441 $
27,999 $ 27,913 $ 27,952 $ 27,542 $
111,406 Provision for loan/lease losses 1,125
1,160 4,870 1,005
1,910 8,945 Noninterest income 11,661
11,197 12,312 12,013
12,492 48,014 Noninterest expense
26,371 24,200 23,973
25,163 25,216 98,552
Income tax expense 3,762 4,417
3,490 4,364 4,102
16,373 Net income attributable to Tompkins Financial Corporation
7,811 9,387 7,859
9,400 8,773 35,419
Noncontrolling interests 33 32
33 33 33 131 Basic
earnings per share $ 0.70 $ 0.84 $ 0.71
$ 0.86 $ 0.80 $ 3.21 Diluted earnings per share
$ 0.70 $ 0.84 $ 0.71 $ 0.85 $
0.80 $ 3.20
Asset Quality
Net charge-offs
1,770 1,445 5,353
679 1,707 9,184 Nonaccrual loans and
leases 38,455 39,588
40,419 38,457 39,902
39,588 Loans and leases 90 days past due and accruing
1,552 1,380 379 2,512
1,266 1,380 Troubled debt
restructurings not included above 423
428 441 0 2,411
428 Total nonperforming loans and leases
40,430 41,396 41,239
40,969 43,579 41,396 OREO
1,906 1,334 1,632 1,742
2,270 1,334 Nonperforming assets
42,336 42,730 42,871
42,711 45,849 42,730
Loan
Classifications
Special Mention 62,649
52,156 66,697 80,470
70,765 52,156 Substandard 58,272
72,920 73,313 80,003
85,973 72,920 Doubtful
1,344 1,494 509 2,450
2,468 1,494
RATIO
ANALYSIS Quarter-Ended Year-Ended
Credit Quality Mar-12 Dec-11
Sep-11 Jun-11 Mar-11
Dec-11
Net loan and lease losses/ average loans
and leases *
0.36% 0.29% 1.10%
0.14% 0.36% 0.48% Nonperforming
loans and leases/loans and leases 2.04%
2.09% 2.11% 2.13% 2.28%
2.09% Nonperforming assets/assets 1.19%
1.26% 1.28% 1.30%
1.40% 1.26% Allowance/nonperforming loans and
leases 66.65% 66.65%
67.60% 69.23% 64.33%
66.65% Allowance/loans and leases 1.36%
1.39% 1.43% 1.48% 1.46%
1.39%
Capital Adequacy (period-end)
Tier
I capital / average assets 8.46% 8.51%
8.55% 8.39% 8.22%
8.51% Total capital / risk-weighted assets
14.37% 14.17% 14.11%
13.98% 13.66% 14.17%
Profitability
Return on average assets * 0.91%
1.11% 0.95% 1.15%
1.09% 1.07% Return on average equity *
10.35% 12.07% 10.29%
13.08% 12.83% 12.02% Net
interest margin (TE) * 3.51% 3.62%
3.71% 3.77% 3.78%
3.72% * Quarterly ratios have been annualized
Tompkins Financial (AMEX:TMP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tompkins Financial (AMEX:TMP)
Historical Stock Chart
From Jul 2023 to Jul 2024