Tompkins Financial Corporation (NYSEMKT:TMP) reported record diluted earnings per share of $0.99 for the fourth quarter of 2016, a 7.6% increase from the $0.92 reported in the fourth quarter of 2015. Net income for the fourth quarter of 2016 was $15.1 million, up 9.1% compared to the $13.9 million reported for the same period in 2015.

President and CEO, Stephen S. Romaine said "We are very pleased to end 2016 with the best fourth quarter in our Company’s long history. Fourth quarter performance reflects the ongoing success of our business development efforts that have produced solid growth in net loan and deposit balances, which are up 12.9% and 5.2%, respectively over 2015. Growth in these key balance sheet categories gives us very good momentum as we head into 2017.”

Full year results reflect the best earnings per share in Company history. For the year ended December 31, 2016, diluted earnings per share were $3.91, an increase of 1.0%, over the $3.87 per share reported in 2015. The record results for 2016 are especially noteworthy given that results for 2015 included a non-recurring curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan, which was recognized in the second quarter of 2015. Refer to the table of “NON-GAAP MEASURES” included in this press release for additional details. Full year and quarterly results for 2016 reflect the impact of the early adoption of Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, which is more fully described in Footnote 10 of this press release.

SELECTED HIGHLIGHTS FOR FOURTH QUARTER:

  • Net interest income of $46.4 million for the current quarter was up 6.8% compared to the fourth quarter of 2015
  • Total loans of $4.3 billion at year end 2016 were up 12.9% over year end 2015
  • Noninterest bearing deposit balances of $1.2 billion at year end 2016 are up 8.6% over year end 2015
  • Nonperforming assets of $22.6 million at year end 2016, though up $3.3 million from the most recent prior quarter, reflect a decrease of 7.8% from year end 2015.
  • During the quarter, the Company announced that it will redeem approximately $20.5 million of 7% Fixed Rate Trust Preferred securities, effective January 31, 2017. For purposes of calculating regulatory capital, these securities were not included as part of Tier 1 capital at year end 2016.

NET INTEREST INCOME

Net interest income of $46.4 million for the fourth quarter of 2016 increased by $2.9 million, or 6.8% compared to the same period in 2015. For the full year, net interest income was $180.6 million, up $12.3 million, or 7.3% from the same period in 2015.

Growth in net interest income was largely driven by $447.7 million of growth in average total loans since the fourth quarter of 2015, an increase of 12.1%. The loan growth was supported, in part, by a $212.7 million increase in average total deposits over the same period. The net interest margin was 3.30% in the fourth quarter, down from 3.31% for the most recent prior quarter, and 3.35% for the same quarter last year.

NONINTEREST INCOME

Noninterest income was $16.3 million for the fourth quarter of 2016, and was down $1.6 million or 8.9% compared to the same period in 2015. For the full year, noninterest income of $68.8 million is down from $71.9 million reported for 2015. Prior year-to-date results included net gains on the sale of other real estate owned of $946,000, which were higher by $860,000, when compared to the current year-to-date period. Fee based revenue for 2016 (including insurance, wealth management, and banking related fees), was relatively flat compared to the prior year.

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the fourth quarter of 2016, approximately flat, when compared to that same quarter in 2015. For the full year, noninterest expenses were $158.6 million in 2016, up $8.7 million, or 5.8% over 2015. The current full year results included $313,000 of expense related to the early termination of an FDIC loss share agreement, which was recognized in the third quarter of 2016; and $546,000 of deconversion expenses related to a core system conversion planned for 2017. The deconversion expenses include $306,000 of expenses that were recognized in the fourth quarter of 2016. Prior year noninterest expenses benefited from a $6.0 million (pretax) non-recurring curtailment gain (recognized in the second quarter of 2015) related to a change in the Company’s defined benefit pension plan.

ASSET QUALITY

Asset quality trends remained strong in the fourth quarter of 2016. Nonperforming assets were down $1.9 million or 7.8% compared to the fourth quarter in 2015; though they were up $3.3 million or 17.0% from the most recent prior quarter. Nonperforming assets represented 0.36% of total assets at December 31, 2016, compared to 0.32% at September 30, 2016, and 0.43% at December 31, 2015. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.77%.

The provision for loan and lease losses was $1.7 million for the fourth quarter of 2016, up from $1.5 million in the fourth quarter of 2015. Full year provision expense was $4.3 million in 2016, up from $2.9 million in 2015. The year-over-year increase in provision expense is primarily due to loan growth, as well as higher net recoveries in the prior period. Net charge-offs for 2016 were $571,000 compared to net recoveries of $62,000 reported in 2015.

The Company’s allowance for originated loan and lease losses totaled $35.6 million at December 31, 2016, and represented 0.92% of total originated loans and leases at December 31, 2016, compared to 0.95% at December 31, 2015. The total allowance represented 165.0% of total nonperforming loans and leases at December 31, 2016, up from 146.7% at December 31, 2015.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio Tier 1 capital to average assets of 8.41% at December 31, 2016, compared to 8.82% reported for December 31, 2015. Total capital to risk-weighted assets at December 31, 2016 was 12.22%, compared to 13.03% reported at December 31, 2015. Contributing to the decline in capital levels in the fourth quarter of 2016 was the exclusion from Tier I capital of $20.5 million in 7% Fixed Rate Trust preferred securities, which the Company plans to redeem in January 2017.

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.

"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 12/31/2016   12/31/2015  
 
Cash and noninterest bearing balances due from banks $ 62,074 $ 56,261
Interest bearing balances due from banks     1,880         1,996  
Cash and Cash Equivalents 63,954 58,257
 
Trading securities, at fair value 0 7,368
Available-for-sale securities, at fair value (amortized cost of $1,352,845 at December 31,
2016 and $1,390,255 at December 31, 2015) 1,429,538 1,385,684
Held-to-maturity securities, at amortized cost (fair value of $151,626 at December 31, 2016
and $146,686 at December 31, 2015) 142,119 146,071
Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,863,922 3,310,768
Acquired loans (3) 394,111 461,274
Less: Allowance for loan and lease losses     35,755         32,004  
Net Loans and Leases 4,222,278 3,740,038
 
Federal Home Loan Bank and other stock 43,133 29,969
Bank premises and equipment, net 70,016 60,331
Corporate owned life insurance 77,905 75,792
Goodwill 92,623 91,792
Other intangible assets, net 11,349 12,448
Accrued interest and other assets     83,841         82,245  
  Total Assets $   6,236,756     $   5,689,995  
 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,518,318 2,401,519
Time 870,788 855,133
  Noninterest bearing     1,236,033         1,138,654  
Total Deposits 4,625,139 4,395,306
 
Federal funds purchased and securities sold under agreements to repurchase 69,062 136,513
Other borrowings 884,815 536,285
Trust preferred debentures 37,681 37,509
Other liabilities     70,654         67,916  
  Total Liabilities $   5,687,351     $   5,173,529  
 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
15,171,816 at December 31, 2016; and 15,015,594 at December 31, 2015 1,517 1,502
Additional paid-in capital 357,414 350,823
Retained earnings 230,182 197,445
Accumulated other comprehensive loss (37,109 ) (31,001 )
Treasury stock, at cost – 117,997 shares at December 31, 2016, and 116,126 shares
at December 31, 2015 (4,051 ) (3,755 )
 
Total Tompkins Financial Corporation Shareholders’ Equity 547,953 515,014
Noncontrolling interests     1,452         1,452  
  Total Equity $   549,405     $   516,466  
  Total Liabilities and Equity $   6,236,756     $   5,689,995  
 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
  Three Months Ended   Twelve Months Ended
(In thousands, except per share data) (Unaudited) 12/31/2016   12/31/2015   12/31/2016     12/31/2015  
INTEREST AND DIVIDEND INCOME
Loans $ 44,252 $ 39,966 $ 169,630 $ 154,636
Due from banks 1 1 6 4
Trading securities 0 82 220 352
Available-for-sale securities 6,348 7,306 27,846 29,525
Held-to-maturity securities 891 915 3,603 3,100
Federal Home Loan Bank and other stock     444     295       1,434       1,129  
Total Interest and Dividend Income     51,936     48,565       202,739       188,746  
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 440 309 1,654 1,367
Other deposits 2,295 2,247 9,059 9,084
Federal funds purchased and securities sold under agreements to
repurchase 288 689 2,228 2,709
Trust preferred debentures 607 582 2,390 2,308
Other borrowings     1,932     1,301       6,772       4,897  
Total Interest Expense     5,562     5,128       22,103       20,365  
Net Interest Income     46,374     43,437       180,636       168,381  
Less: Provision for loan and lease losses     1,706     1,533       4,321       2,945  
Net Interest Income After Provision for Loan and Lease Losses     44,668     41,904       176,315       165,436  
NONINTEREST INCOME
Insurance commissions and fees 6,684 6,945 29,492 29,286
Investment services income 3,848 3,898 15,203 15,416
Service charges on deposit accounts 2,234 2,513 8,793 9,325
Card services income 2,078 1,993 8,058 7,837
Mark-to-market loss on trading securities 0 (89 ) (182 ) (295 )
Mark-to-market gain on liabilities held at fair value 0 159 227 385
Other income 1,472 2,488 6,291 8,878
Gain on sale of available-for-sale securities     0     3       926       1,108  
Total Noninterest Income     16,316     17,910       68,808       71,940  
NONINTEREST EXPENSE
Salaries and wages 18,827 18,388 76,950 72,707
Pension and other employee benefits 5,061 5,182 20,496 16,025
Net occupancy expense of premises 3,328 3,009 12,521 12,312
Furniture and fixture expense 1,477 1,681 6,450 6,146
FDIC insurance 636 774 3,024 2,992
Amortization of intangible assets 518 510 2,090 2,013
Other operating expense     9,542     9,826       37,076       37,667  
Total Noninterest Expenses     39,389     39,370       158,607       149,862  
Income Before Income Tax Expense     21,595     20,444       86,516       87,514  
Income Tax Expense     6,444     6,557       27,045       28,962  
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation     15,151     13,887       59,471       58,552  
Less: Net income attributable to noncontrolling interests     33     33       131       131  
Net Income Attributable to Tompkins Financial Corporation   $ 15,118 $   13,854     $ 59,340     $ 58,421  
Basic Earnings Per Share $ 1.00 $ 0.93 $ 3.94 $ 3.91
Diluted Earnings Per Share   $ 0.99 $   0.92     $ 3.91     $ 3.87  
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                     
Quarter Ended Year to Date Period Ended Year to Date Period Ended
          December 31, 2016     December 31, 2016     December 31, 2015
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 $ 2,172 $ 1 0.37 % $ 2,019 $ 6 0.30 % $ 1,812 $ 4 0.22 %
Securities (4)
U.S. Government securities 1,433,303 6,711 1.86 % 1,443,894 29,318 2.03 % 1,441,420 30,500 2.12 %
Trading securities - - 0.00 % 4,893 220 4.50 % 8,231 352 4.28 %
State and municipal (5) 98,029 821 3.33 % 97,937 3,309 3.38 % 88,504 3,308 3.74 %
Other securities (5) 3,622   31   3.40 %   3,645   123   3.37 %   3,785   121   3.20 %
Total securities 1,534,954 7,563 1.96 % 1,550,369 32,970 2.13 % 1,541,940 34,281 2.22 %
FHLBNY and FRB stock 34,792 444 5.08 % 32,528 1,434 4.41 % 24,046 1,129 4.70 %
 
Total loans and leases, net of unearned income (5)(6) 4,135,203   44,959   4.32 %   3,957,221   172,443   4.36 %   3,531,945   157,222   4.45 %
Total interest-earning assets 5,707,121   52,967   3.69 %   5,542,137   206,853   3.73 %   5,099,743   192,636   3.78 %
 
Other assets 367,852 355,943 355,471
 
Total assets 6,074,973 5,898,080 5,455,214
                                                     
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,573,237 1,049 0.16 % 2,529,009 4,008 0.16 % 2,363,087 3,821 0.16 %
Time deposits 855,651     1,686     0.78 %     871,595     6,705     0.77 %     895,391     6,630     0.74 %
Total interest-bearing deposits 3,428,888 2,735 0.32 % 3,400,604 10,713 0.32 % 3,258,478 10,451 0.32 %
 
Federal funds purchased & securities sold under
agreements to repurchase 74,107 288 1.55 % 99,622 2,228 2.24 % 137,917 2,709 1.96 %
Other borrowings 696,479 1,932 1.10 % 616,560 6,772 1.10 % 417,737 4,897 1.17 %
Trust preferred debentures 37,652     607     6.42 %     37,588     2,390     6.36 %     37,417     2,308     6.17 %
Total interest-bearing liabilities 4,237,126 5,562 0.52 % 4,154,374 22,103 0.53 % 3,851,549 20,365 0.53 %
 
Noninterest bearing deposits 1,211,707 1,130,406 1,029,545
Accrued expenses and other liabilities 67,034 66,243 66,366
Total liabilities 5,515,867 5,351,023 4,947,460
 
Tompkins Financial Corporation Shareholders’ equity 557,563 545,545 506,243
Noncontrolling interest 1,543 1,512 1,511
Total equity 559,106 547,057 507,754
 
Total liabilities and equity $ 6,074,973 $ 5,898,080 $ 5,455,214
Interest rate spread     3.17 %     3.20 %     3.25 %
Net interest income/margin on earning assets 47,405 3.30 % 184,750 3.33 % 172,271 3.38 %
 
Tax Equivalent Adjustment (1,031 ) (4,114 ) (3,890 )
 
  Net interest income per consolidated financial statements         $ 46,374               $ 180,636               $ 168,381      
 
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
                       
(In thousands, except per share data)   Quarter-Ended Year-Ended
  Dec-16   Sep-16   Jun-16   Mar-16   Dec-15   Dec-16
 
Period End Balance Sheet                        
Securities $ 1,571,657   $ 1,515,761   $ 1,564,080   $ 1,583,742   $ 1,539,123   $ 1,571,657  
Originated loans and leases, net of unearned income and deferred costs and fees (2)   3,863,922     3,672,539     3,551,628     3,370,791     3,310,768     3,863,922  
Acquired loans and leases (3)   394,111     417,008     426,485     450,122     461,274     394,111  
Allowance for loan and lease losses   35,755     34,112     33,125     32,530     32,004     35,755  
Total assets   6,236,756     6,102,215     5,924,906     5,764,971     5,689,995     6,236,756  
Total deposits   4,625,139     4,690,300     4,469,721     4,555,228     4,395,306     4,625,139  
Federal funds purchased and securities sold under agreements to repurchase   69,062     77,218     97,180     116,551     136,513     69,062  
Other borrowings   884,815     671,000     700,026     455,341     536,285     884,815  
Trust preferred debentures   37,681     37,638     37,595     37,552     37,509     37,681  
Total common equity   547,953     559,640     552,918     538,408     515,014     547,953  
Total equity   549,405     561,190     554,435     539,893     516,466     549,405  
 
Average Balance Sheet                        
Average earning assets $ 5,707,121   $ 5,577,885   $ 5,492,913   $ 5,388,420   $ 5,260,979   $ 5,542,137  
Average assets   6,074,973     5,942,260     5,842,387     5,730,271     5,624,351     5,898,080  
Average interest-bearing liabilities   4,237,126     4,168,879     4,143,031     4,067,385     3,930,707     4,154,374  
Average equity   559,106     557,281     543,283     528,314     518,529     547,057  
 
Share data                        
Weighted average shares outstanding (basic)   14,862,189     14,829,222     14,798,515     14,760,276     14,719,394     14,812,712  
Weighted average shares outstanding (diluted) (10)   15,014,221     14,965,233     14,917,206     14,847,616     14,869,103     14,936,231  
Period-end shares outstanding   15,135,906     15,055,954     15,035,369     15,023,776     14,979,684     15,135,906  
Common equity book value per share $ 36.20   $ 37.17   $ 36.77   $ 35.84   $ 34.38   $ 36.20  
Tangible book value per share (Non-GAAP) $ 29.38   $ 30.28   $ 29.82   $ 28.85   $ 27.48   $ 29.38  
 
Income Statement                        
Net interest income $ 46,374   $ 45,317   $ 44,907   $ 44,038   $ 43,437   $ 180,636  
Provision for loan/lease losses   1,706     782     978     855     1,533     4,321  
Noninterest income   16,316     17,905     17,084     17,503     17,910     68,808  
Noninterest expense   39,389     40,324     39,388     39,506     39,370     158,607  
Income tax expense (10)   6,444     6,945     6,760     6,896     6,557     27,045  
Net income attributable to Tompkins Financial Corporation (10)   15,118     15,138     14,833     14,251     13,854     59,340  
Noncontrolling interests   33     33     32     33     33     131  
Basic earnings per share (8) (10) $ 1.00   $ 1.01   $ 0.99   $ 0.95   $ 0.93   $ 3.94  
Diluted earnings per share (8) (10) $ 0.99   $ 1.00   $ 0.98   $ 0.94   $ 0.92   $ 3.91  
 
Nonperforming Assets                        
Originated nonaccrual loans and leases $ 14,300   $ 11,554   $ 11,008   $ 12,671   $ 13,506   $ 14,300  
Acquired nonaccrual loans and leases   4,741     4,559     4,831     4,145     4,331     4,741  
Originated loans and leases 90 days past due and accruing   0     35     89     57     58     0  
Troubled debt restructurings not included above   2,631     2,148     2,172     3,862     3,915     2,631  
Total nonperforming loans and leases   21,672     18,296     18,100     20,735     21,810     21,672  
OREO   908     1,008     1,001     1,865     2,692     908  
Total nonperforming assets $ 22,580   $ 19,304   $ 19,101   $ 22,600   $ 24,502   $ 22,580  
 
 
 

 

 

 

 

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

  Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio   Dec-16   Sep-16   Jun-16   Mar-16   Dec-15   Dec-16
Loans and leases 30-89 days past due and
accruing (2) $ 6,694   $ 4,551   $ 4,464   $ 2,519   $ 3,280   $ 6,694  
Loans and leases 90 days past due and accruing (2)   0     35     89     57     58     0  
Total originated loans and leases past due and accruing (2)   6,694     4,586     4,553     2,576     3,338     6,694  
 
Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7) $ 2,553   $ 1,069   $ 1,750   $ 1,039   $ 1,209   $ 2,553  
Loans 90 days or more past due   2,557     2,555     1,861     1,915     2,515     2,557  
Total acquired loans and leases past due and accruing   5,110     3,624     3,611     2,954     3,724     5,110  
Total loans and leases past due and accruing $ 11,804   $ 8,210   $ 8,164   $ 5,530   $ 7,062   $ 11,804  
 
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 33,956   $ 32,968   $ 31,981   $ 31,312   $ 30,450   $ 31,312  
Provision for loan and lease losses   1,419     868     978     872     1,185     4,137  
Net loan and lease (recoveries) charge-offs   (223 )   (120 )   (9 )   203     323     (149 )
Allowance for loan and lease losses (originated 35,598   33,956   32,968   31,981   31,312   35,598  
loan portfolio) - balance at end of period $ $ $ $ $ $
 
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 156   $ 157   $ 549   $ 692   $ 515   $ 692  
Provision (credit) for loan and lease losses   287     (86 )   0     (17 )   348     184  
Net loan and lease (recoveries) charge-offs   286     (85 )   392     126     171     719  
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period   157     156     157     549     692     157  
                         
Total allowance for loan and lease losses $ 35,755   $ 34,112   $ 33,125   $ 32,530   $ 32,004   $ 35,755  
 
Loan Classification - Originated Portfolio                        
Special Mention $ 20,485   $ 27,215   $ 20,639   $ 20,388   $ 19,657   $ 20,485  
Substandard   20,316     18,121     16,462     18,026     18,186     20,316  
Loan Classification - Acquired Portfolio                        
Special Mention   526     540     550     534     540     526  
Substandard   13,141     14,000     13,975     17,445     17,007     13,141  
Loan Classifications - Total Portfolio                        
Special Mention   21,011     27,755     21,189     20,922     20,197     21,011  
Substandard   33,457     32,121     30,437     35,471     35,193     33,457  
 
 

 

 

 

 

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

                       
RATIO ANALYSIS   Quarter-Ended Year-Ended
Credit Quality   Dec-16   Sep-16   Jun-16   Mar-16   Dec-15   Dec-16
Nonperforming loans and leases/total loans and leases (7)   0.51 %   0.45 %   0.45 %   0.54 %   0.58 %   0.51 %
Nonperforming assets/total assets   0.36 %   0.32 %   0.32 %   0.39 %   0.43 %   0.36 %
Allowance for originated loan and lease losses/total originated loans and leases   0.92 %   0.92 %   0.93 %   0.95 %   0.95 %   0.92 %
Allowance/nonperforming loans and leases   164.98 %   186.45 %   183.01 %   156.88 %   146.74 %   164.98 %
Net loan and lease losses (recoveries) annualized/total average loans and leases   0.01 %   (0.02 %)   0.04 %   0.03 %   0.05 %   0.01 %
 
Capital Adequacy (period-end)                        
Tier 1 capital / average assets *   8.41 %   8.83 %   8.79 %   8.79 %   8.82 %   8.41 %
Total capital / risk-weighted assets *   12.22 %   12.97 %   12.95 %   13.18 %   13.03 %   12.22 %
 
Profitability                        
Return on average assets * (10)   0.99 %   1.01 %   1.02 %   1.00 %   0.98 %   1.01 %
Return on average equity * (10)   10.76 %   10.81 %   10.98 %   10.85 %   10.63 %   10.85 %
Net interest margin (TE) *   3.30 %   3.31 %   3.36 %   3.36 %   3.35 %   3.33 %
* Quarterly ratios have been annualized
 
 
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.
 
 
Non-GAAP Disclosure - Tangible Book Value Per Share
    Quarter-Ended Year-Ended
    Dec-16   Sep-16   Jun-16   Mar-16   Dec-15   Dec-16
Total common equity $ 547,953   $ 559,640   $ 552,918   $ 538,408   $ 515,014   $ 547,953  
Less: Goodwill and intangibles (9)   103,214     103,732     104,636     104,987     103,347     103,214  
Tangible common equity   444,739     455,908     448,282     433,421     411,667     444,739  
Ending shares outstanding   15,135,906     15,055,954     15,035,369     15,023,776     14,979,684     15,135,906  
Tangible book value per share (Non-GAAP) $ 29.38   $ 30.28   $ 29.82   $ 28.85   $ 27.48   $ 29.38  
 
 
 

 

 

 

 

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

 
 
             
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
      Dec-16 Dec-15
Net income available to common shareholders $ 59,340   $ 58,421  
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards   912     834  
Adjusted net income available to common shareholders   58,428     57,587  
Gain on pension plan curtailment (net of tax)   0     (3,602 )
Net operating income (Non-GAAP)   58,428     53,985  
Weighted average shares outstanding (diluted)   14,936,231     14,863,026  
Adjusted diluted earnings per share (Non-GAAP) $ 3.91   $ 3.63  
 
(1) Federal Reserve peer ratio as of September 30, 2016, 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.
(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, 2015.
(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)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.
(9) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.
(10) The third quarter, second quarter, and first quarter of 2016 information is revised to reflect the impact of the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting". The early adoption resulted in $847,000, $274,000, $262,000, and $71,000 of excess benefits recognized within "income tax expense" during the three months ended December 31, September 30, June 30, and March 31, 2016, respectively.