ITHACA, N.Y., January 31, 2025--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.37 for the fourth quarter of 2024, up 5.4% and 30.5% compared to the immediate prior quarter and the fourth quarter of 2023, respectively. Net income for the fourth quarter of 2024 was $19.7 million, up $1.0 million or 5.5% compared to the third quarter of 2024, and up $4.7 million, or 31.0%, when compared to the fourth quarter of 2023.
For the year ended December 31, 2024, diluted earnings per share of $4.97 were up 653.0% compared to the year ended December 31, 2023. Net income for 2024 was $70.9 million, an increase of $61.3 million compared to 2023. The 2023 results included an after-tax loss of $52.9 million or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities. Earnings performance for 2024 benefited from increased net interest income, growth in fee-based businesses and lower operating expenses.
Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report increased earnings for the year and fourth quarter of 2024. Our improved results were driven by growth in revenue and lower operating expense. Revenue growth was broad and supported by strong loan growth, deposit growth, and growth in our fee-based businesses. Our fourth quarter ended the year with 9.4% annualized loan growth, 14 basis points of net interest margin expansion and improving profitability metrics. We look forward to the new year as we believe we remain well positioned to continue to drive growth through quality customer relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
NET INTEREST INCOME
Net interest income was $56.3 million for the fourth quarter of 2024, up $3.1 million or 5.8% compared to the third quarter of 2024, and up $3.9 million or 7.5% compared to the fourth quarter of 2023. The increase in net interest income compared to the third quarter of 2024 was due to improvement in net interest margin, which is explained further below, and an increase in average loan balances. The increase when compared to the fourth quarter of 2023 was due to increases in both average loan balances and average loan yields, and was partially offset by higher average funding costs.
For the year ended December 31, 2024, net interest income was $211.1 million, an increase of $1.6 million or 0.8% when compared to the year ended December 31, 2023. The increase reflects growth in average loan balances and higher yields on average earning assets, partially offset by higher average cost of funds.
Net interest margin was 2.93% for the fourth quarter of 2024, up 14 basis points when compared to the immediate prior quarter, and up 11 basis points from 2.82% for the fourth quarter of 2023. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to lower funding costs resulting from growth in average deposits and lower market rates. The increase in net interest margin when compared to the same period prior year was mainly a result of higher yields on average interest earning assets and higher average loan balances, and was partially offset by higher average funding costs.
Average loans for the quarter ended December 31, 2024 were up $100.9 million, or 1.7%, from the third quarter of 2024, and were up $445.1 million, or 8.1%, 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 December 31, 2024 was 4.67%, a slight increase from 4.66% for the quarter ended September 30, 2024, and up from 4.34% for the quarter ended December 31, 2023.
Average total deposits of $6.6 billion for the fourth quarter of 2024 were up $217.3 million, or 3.4%, compared to the third quarter of 2024, and up $91.9 million or 1.4% compared to the same period in 2023. The cost of interest-bearing deposits of 2.31% for the fourth quarter of 2024 was down 4 basis points from 2.35% for the third quarter of 2024, and up 27 basis points from 2.04% for the fourth quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2024 was 28.0% compared to 28.9% for the third quarter of 2024, and 29.6% for the fourth quarter of 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2024 of 2.53% represents a decrease of 18 basis points over the third quarter of 2024, and an increase of 28 basis points over the same period in 2023.
NONINTEREST INCOME
Noninterest income of $20.8 million for the fourth quarter of 2024 was up $2.0 million or 10.5% compared to the same period in 2023. The increase in quarterly noninterest income when compared to the same period in 2023 was mainly due to increases in fee-based revenues, which includes insurance commissions and fees, up $698,000 or 9.0%; wealth management fees, up $456,000 or 10.3%; service charges on deposit accounts, up $81,000 or 4.6%; and card services income, up $60,000 or 2.1%. Other income was up $763,000 or 38.6% for the quarter ended December 31, 2024 compared to the same period in 2023, and included increases in gains on loan sales and derivative swap fee income.
Noninterest income of $88.1 million for the year ended December 31, 2024 was up $77.9 million or 760.5% compared to the year ended December 31, 2023. The increase in noninterest income compared to 2023 was mainly due to the $70.0 million pre-tax loss on the sale of available-for-sale debt securities in 2023 as discussed above. Also contributing to the increase for the year ended December 31, 2024 over the prior year were fee-based revenues, which includes insurance commissions and fees, up $1.7 million or 4.7%; wealth management fees, up $1.6 million or 9.1%; service charges on deposit accounts, up $375,000 or 5.4%; and card services income, up $569,000 or 5.0%. Other income was up $3.6 million for the year ended December 31, 2024 compared to 2023, and included increases in gains on loan sales, derivative swap fee income and earnings on bank-owned life insurance.
NONINTEREST EXPENSE
Noninterest expense was $50.0 million for the fourth quarter of 2024, down $1.3 million or 2.6% compared to the fourth quarter of 2023. Other operating expenses for the quarter were down $3.0 million or 20.4% from the same period prior year and included decreases in technology, down $1.1 million; marketing, down $665,000; other losses, down $364,000; and professional fees, down $242,000. Noninterest expense for the year ended December 31, 2024 was $199.6 million, a decrease of $3.7 million or 1.8% compared to the $203.3 million reported for 2023. The year-over-year decrease was mainly driven by lower other operating expenses, which were down $5.1 million or 9.1% and included decreases in technology, down $1.3 million; marketing, down $1.2 million; professional fees, down $1.0 million; retirement plan expense, down $709,000; and travel and meeting expense, down $667,000. Partially offsetting these decreases, FDIC insurance expense was up $1.4 million or 32.5% year-over-year.
INCOME TAX EXPENSE
The provision for income tax expense for the fourth quarter of 2024 was $6.0 million for an effective rate of 23.5%, compared to a provision for tax expense of $3.1 million and an effective rate of 17.2% for the same quarter in 2023. For the year ended December 31, 2024, the provision for income tax expense was $22.0 million and the effective tax rate was 23.7% compared to tax expense of $2.5 million and an effective tax rate of 20.6% for 2023. Increased tax expense for both the quarter and year-to-date periods in 2024 was mainly a result of lower income in 2023 associated with the loss on the sale of securities described above.
In 2024, the Company's average assets exceeded the $8.0 billion threshold for receiving certain New York State tax benefits associated with the Company’s real estate investment trust ("REIT") subsidiaries. Therefore, the Company did not recognize any tax benefit in connection with the REITs in 2024. In the fourth quarter of 2024, the Company’s bank subsidiary approved the dissolution of the REITs.
ASSET QUALITY
The allowance for credit losses represented 0.94% of total loans and leases at December 31, 2024, unchanged compared to the most recent prior quarter, and up from 0.92% reported at December 31, 2023. The year over year increase in the allowance for credit losses coverage ratio includes changes for qualitative factors relating to loan growth and asset quality, model assumptions changes, and updates to economic forecasts for unemployment and GDP. The increase in allowance for credit losses was partially offset by lower off-balance sheet reserves due to model changes related to utilization rates and a decrease in loan pipeline. The ratio of the allowance to total nonperforming loans and leases was 111.06% at December 31, 2024, compared to 88.51% at September 30, 2024, and 82.84% at December 31, 2023. The increase in the ratio compared to the same prior year period was due to the decrease in nonperforming loans and leases discussed in more detail below.
Provision for credit losses for the fourth quarter of 2024 was $1.4 million compared to $1.8 million for the same period in 2023. Provision for credit losses for the year ended December 31, 2024 was $6.6 million compared to $4.3 million for the year ended December 31, 2023. The increase in provision expense for the full year compared to 2023 was mainly driven by loan growth, an increase in net charge-offs and model assumption updates. Net charge-offs for the three months and year ended December 31, 2024 were $857,000 and $2.5 million, respectively, compared to net charge-offs of $410,000 and $1.6 million for the same periods in 2023.
Nonperforming assets represented 0.80% of total assets at December 31, 2024, unchanged from December 31, 2023 but up slightly compared to 0.78% at September 30, 2024. At December 31, 2024, nonperforming loans and leases totaled $50.9 million, compared to $62.6 million at September 30, 2024 and $62.3 million at December 31, 2023. The decrease in nonperforming loans and leases at December 31, 2024 compared to December 31, 2023 was due to one commercial real estate loan for $14.2 million being moved from nonperforming loans to other real estate owned. The increase in loans past due 30-89 days at December 31, 2024 compared to prior quarter end and December 31, 2023 was mainly due to the inclusion of a $17.4 million commercial real estate loan.
Special Mention and Substandard loans and leases totaled $111.1 million at December 31, 2024, compared to $126.0 million reported at September 30, 2024, and $123.1 million reported at December 31, 2023. The decrease was mainly due to the reclassification of one commercial real estate loan from nonperforming loans to other real estate owned as mentioned above.
CAPITAL POSITION
Capital ratios at December 31, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.08% at December 31, 2024, compared to 13.21% at September 30, 2024, and 13.36% at December 31, 2023. The decrease in the ratio is mainly a result of loan growth during the fourth quarter of 2024. The ratio of Tier 1 capital to average assets was 9.27% at December 31, 2024, compared to 9.19% at September 30, 2024, and 9.08% at December 31, 2023.
LIQUIDITY POSITION
The Company's liquidity position at December 31, 2024 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 Banks (FHLB) advances. The Company maintained ready access to liquidity of $1.3 billion, or 16.4% of total assets at December 31, 2024.
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 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 potential 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), 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 |
12/31/2024 |
12/31/2023 |
||||
(Audited) |
||||||
Cash and noninterest bearing balances due from banks |
$ |
53,635 |
$ |
67,212 |
||
Interest bearing balances due from banks |
80,763 |
12,330 |
||||
Cash and Cash Equivalents |
134,398 |
79,542 |
||||
Available-for-sale debt securities, at fair value (amortized cost of $1,367,123 at December 31, 2024 and $1,548,482 at December 31, 2023) |
1,231,532 |
1,416,650 |
||||
Held-to-maturity debt securities, at amortized cost (fair value of $267,295 at December 31, 2024 and $267,455 at December 31, 2023) |
312,462 |
312,401 |
||||
Equity securities, at fair value |
768 |
787 |
||||
Total loans and leases, net of unearned income and deferred costs and fees |
6,019,922 |
5,605,935 |
||||
Less: Allowance for credit losses |
56,496 |
51,584 |
||||
Net Loans and Leases |
5,963,426 |
5,554,351 |
||||
Federal Home Loan Bank and other stock |
42,255 |
33,719 |
||||
Bank premises and equipment, net |
76,626 |
79,687 |
||||
Corporate owned life insurance |
76,448 |
67,884 |
||||
Goodwill |
92,602 |
92,602 |
||||
Other intangible assets, net |
2,203 |
2,327 |
||||
Accrued interest and other assets |
176,360 |
179,799 |
||||
Total Assets |
$ |
8,109,080 |
$ |
7,819,749 |
||
LIABILITIES |
||||||
Deposits: |
||||||
Interest bearing: |
||||||
Checking, savings and money market |
3,558,946 |
3,484,878 |
||||
Time |
1,068,375 |
998,013 |
||||
Noninterest bearing |
1,844,484 |
1,916,956 |
||||
Total Deposits |
6,471,805 |
6,399,847 |
||||
Federal funds purchased and securities sold under agreements to repurchase |
37,036 |
50,996 |
||||
Other borrowings |
790,247 |
602,100 |
||||
Other liabilities |
96,548 |
96,872 |
||||
Total Liabilities |
$ |
7,395,636 |
$ |
7,149,815 |
||
EQUITY |
||||||
Tompkins Financial Corporation shareholders' equity: |
||||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,468,013 at December 31, 2024; and 14,441,830 at December 31, 2023 |
1,447 |
1,444 |
||||
Additional paid-in capital |
300,073 |
297,183 |
||||
Retained earnings |
537,157 |
501,510 |
||||
Accumulated other comprehensive loss |
(118,492 |
) |
(125,005 |
) |
||
Treasury stock, at cost – 131,497 shares at December 31, 2024, and 132,097 shares at December 31, 2023 |
(6,741 |
) |
(6,610 |
) |
||
Total Tompkins Financial Corporation Shareholders’ Equity |
713,444 |
668,522 |
||||
Noncontrolling interests |
0 |
1,412 |
||||
Total Equity |
$ |
713,444 |
$ |
669,934 |
||
Total Liabilities and Equity |
$ |
8,109,080 |
$ |
7,819,749 |
||
TOMPKINS FINANCIAL CORPORATION |
||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
Year Ended |
||||||||||
12/31/2024 |
09/30/2024 |
12/31/2023 |
12/31/2024 |
12/31/2023 |
||||||||
INTEREST AND DIVIDEND INCOME |
||||||||||||
Loans |
$ |
78,911 |
$ |
77,814 |
$ |
69,035 |
$ |
301,970 |
$ |
260,434 |
||
Due from banks |
235 |
168 |
227 |
741 |
674 |
|||||||
Available-for-sale debt securities |
8,760 |
9,037 |
9,717 |
36,779 |
29,677 |
|||||||
Held-to-maturity debt securities |
1,222 |
1,222 |
1,222 |
4,881 |
4,876 |
|||||||
Federal Home Loan Bank and other stock |
894 |
888 |
584 |
3,203 |
1,697 |
|||||||
Total Interest and Dividend Income |
90,022 |
$ |
89,129 |
$ |
80,785 |
$ |
347,574 |
$ |
297,358 |
|||
INTEREST EXPENSE |
||||||||||||
Time certificates of deposits of $250,000 or more |
4,698 |
4,158 |
3,949 |
16,914 |
11,421 |
|||||||
Other deposits |
22,856 |
22,553 |
19,526 |
87,069 |
59,387 |
|||||||
Federal funds purchased and securities sold under agreements to repurchase |
11 |
11 |
14 |
46 |
58 |
|||||||
Other borrowings |
6,176 |
9,214 |
4,937 |
32,443 |
16,978 |
|||||||
Total Interest Expense |
33,741 |
35,936 |
28,426 |
136,472 |
87,844 |
|||||||
Net Interest Income |
56,281 |
53,193 |
52,359 |
211,102 |
209,514 |
|||||||
Less: Provision for credit loss expense |
1,411 |
2,174 |
1,761 |
6,611 |
4,339 |
|||||||
Net Interest Income After Provision for Credit Loss Expense |
54,870 |
51,019 |
50,598 |
204,491 |
205,175 |
|||||||
NONINTEREST INCOME |
||||||||||||
Insurance commissions and fees |
8,471 |
11,283 |
7,773 |
39,100 |
37,351 |
|||||||
Wealth management fees |
4,878 |
4,925 |
4,422 |
19,589 |
17,951 |
|||||||
Service charges on deposit accounts |
1,854 |
1,872 |
1,773 |
7,288 |
6,913 |
|||||||
Card services income |
2,919 |
2,921 |
2,859 |
12,057 |
11,488 |
|||||||
Other income |
2,740 |
2,299 |
1,977 |
10,061 |
6,511 |
|||||||
Net gain (loss) on securities transactions |
(33 |
) |
85 |
46 |
32 |
(69,973 |
) |
|||||
Total Noninterest Income |
20,829 |
23,385 |
18,850 |
88,127 |
10,241 |
|||||||
NONINTEREST EXPENSE |
||||||||||||
Salaries and wages |
25,870 |
25,664 |
23,710 |
101,150 |
97,370 |
|||||||
Other employee benefits |
7,429 |
6,276 |
6,626 |
26,661 |
27,333 |
|||||||
Net occupancy expense of premises |
2,873 |
3,065 |
3,544 |
12,634 |
13,278 |
|||||||
Furniture and fixture expense |
1,834 |
1,797 |
2,425 |
7,666 |
8,663 |
|||||||
Amortization of intangible assets |
90 |
86 |
84 |
332 |
334 |
|||||||
Other operating expense |
11,870 |
12,989 |
14,911 |
51,199 |
56,314 |
|||||||
Total Noninterest Expenses |
49,966 |
49,877 |
51,300 |
199,642 |
203,292 |
|||||||
Income Before Income Tax Expense |
25,733 |
24,527 |
18,148 |
92,976 |
12,124 |
|||||||
Income Tax Expense |
6,045 |
5,858 |
3,114 |
22,003 |
2,495 |
|||||||
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
19,688 |
18,669 |
15,034 |
... | 70,973 |
9,629 |
||||||
Less: Net Income Attributable to Noncontrolling Interests |
30 |
31 |
31 |
123 |
124 |
|||||||
Net Income Attributable to Tompkins Financial Corporation |
$ |
19,658 |
18,638 |
15,003 |
70,850 |
9,505 |
||||||
Basic Earnings Per Share |
$ |
1.38 |
$ |
1.31 |
$ |
1.06 |
$ |
4.98 |
$ |
0.66 |
||
Diluted Earnings Per Share |
$ |
1.37 |
$ |
1.30 |
$ |
1.05 |
$ |
4.97 |
$ |
0.66 |
||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
Quarter Ended |
Quarter Ended |
|||||||||||||
December 31, 2024 |
September 30, 2024 |
|||||||||||||
Average |
Average |
|||||||||||||
Balance |
Average |
Balance |
Average |
|||||||||||
(Dollar amounts in thousands) |
(QTD) |
Interest |
Yield/Rate |
(QTD) |
Interest |
Yield/Rate |
||||||||
ASSETS |
||||||||||||||
Interest-earning assets |
||||||||||||||
Interest-bearing balances due from banks |
$ |
19,065 |
$ |
235 |
4.90 |
% |
$ |
13,189 |
$ |
168 |
5.07 |
% |
||
Securities1 |
||||||||||||||
U.S. Government securities |
1,619,973 |
9,471 |
2.33 |
% |
1,664,611 |
9,740 |
2.33 |
% |
||||||
State and municipal2 |
86,481 |
557 |
2.56 |
% |
87,799 |
560 |
2.54 |
% |
||||||
Other securities |
3,287 |
55 |
6.66 |
% |
3,282 |
60 |
7.27 |
% |
||||||
Total securities |
1,709,741 |
10,083 |
2.35 |
% |
1,755,692 |
10,360 |
2.35 |
% |
||||||
FHLBNY and FRB stock |
30,665 |
894 |
11.60 |
% |
38,534 |
888 |
9.17 |
% |
||||||
Total loans and leases, net of unearned income2,3 |
5,931,771 |
79,126 |
5.31 |
% |
5,830,899 |
78,040 |
5.32 |
% |
||||||
Total interest-earning assets |
7,691,242 |
90,338 |
4.67 |
% |
7,638,314 |
89,456 |
4.66 |
% |
||||||
Other assets |
282,490 |
276,610 |
||||||||||||
Total assets |
$ |
7,973,732 |
$ |
7,914,924 |
||||||||||
LIABILITIES & EQUITY |
||||||||||||||
Deposits |
||||||||||||||
Interest-bearing deposits |
||||||||||||||
Interest bearing checking, savings, & money market |
$ |
3,661,006 |
$ |
17,223 |
1.87 |
% |
$ |
3,509,116 |
$ |
16,635 |
1.89 |
% |
||
Time deposits |
1,076,300 |
10,331 |
3.82 |
% |
1,016,949 |
10,076 |
3.94 |
% |
||||||
Total interest-bearing deposits |
4,737,306 |
27,554 |
2.31 |
% |
4,526,065 |
26,711 |
2.35 |
% |
||||||
Federal funds purchased & securities sold under agreements to repurchase |
39,519 |
11 |
0.11 |
% |
42,449 |
11 |
0.10 |
% |
||||||
Other borrowings |
534,219 |
6,176 |
4.60 |
% |
709,474 |
9,214 |
5.17 |
% |
||||||
Total interest-bearing liabilities |
5,311,044 |
33,741 |
2.53 |
% |
5,277,988 |
35,936 |
2.71 |
% |
||||||
Noninterest bearing deposits |
1,844,772 |
1,838,725 |
||||||||||||
Accrued expenses and other liabilities |
101,370 |
101,679 |
||||||||||||
Total liabilities |
7,257,186 |
7,218,392 |
||||||||||||
Tompkins Financial Corporation Shareholders’ equity |
715,299 |
695,057 |
||||||||||||
Noncontrolling interest |
1,247 |
1,475 |
||||||||||||
Total equity |
716,546 |
696,532 |
||||||||||||
Total liabilities and equity |
$ |
7,973,732 |
$ |
7,914,924 |
||||||||||
Interest rate spread |
2.15 |
% |
1.95 |
% |
||||||||||
Net interest income (TE)/margin on earning assets |
56,597 |
2.93 |
% |
53,520 |
2.79 |
% |
||||||||
Tax Equivalent Adjustment |
(316 |
) |
(327 |
) |
||||||||||
Net interest income |
$ |
56,281 |
$ |
53,193 |
||||||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
Quarter Ended |
Quarter Ended |
|||||||||||||
December 31, 2024 |
December 31, 2023 |
|||||||||||||
Average |
Average |
|||||||||||||
Balance |
Average |
Balance |
Average |
|||||||||||
(Dollar amounts in thousands) |
(QTD) |
Interest |
Yield/Rate |
(QTD) |
Interest |
Yield/Rate |
||||||||
ASSETS |
||||||||||||||
Interest-earning assets |
||||||||||||||
Interest-bearing balances due from banks |
$ |
19,065 |
$ |
235 |
4.90 |
% |
$ |
14,351 |
$ |
227 |
6.28 |
% |
||
Securities1 |
||||||||||||||
U.S. Government securities |
1,619,973 |
9,471 |
2.33 |
% |
1,789,043 |
10,411 |
2.31 |
% |
||||||
State and municipal2 |
86,481 |
557 |
2.56 |
% |
90,070 |
574 |
2.53 |
% |
||||||
Other securities |
3,287 |
55 |
6.66 |
% |
3,242 |
60 |
7.37 |
% |
||||||
Total securities |
1,709,741 |
10,083 |
2.35 |
% |
1,882,355 |
11,045 |
2.33 |
% |
||||||
FHLBNY and FRB stock |
30,665 |
894 |
11.60 |
% |
24,555 |
584 |
9.44 |
% |
||||||
Total loans and leases, net of unearned income2,3 |
5,931,771 |
79,126 |
5.31 |
% |
5,486,715 |
69,197 |
5.00 |
% |
||||||
Total interest-earning assets |
7,691,242 |
90,338 |
4.67 |
% |
7,407,976 |
81,053 |
4.34 |
% |
||||||
Other assets |
282,490 |
259,006 |
||||||||||||
Total assets |
$ |
7,973,732 |
$ |
7,666,982 |
||||||||||
LIABILITIES & EQUITY |
||||||||||||||
Deposits |
||||||||||||||
Interest-bearing deposits |
||||||||||||||
Interest bearing checking, savings, & money market |
$ |
3,661,006 |
$ |
17,223 |
1.87 |
% |
$ |
3,643,919 |
$ |
14,915 |
1.62 |
% |
||
Time deposits |
1,076,300 |
10,331 |
3.82 |
% |
925,790 |
8,560 |
3.67 |
% |
||||||
Total interest-bearing deposits |
4,737,306 |
27,554 |
2.31 |
% |
4,569,709 |
23,475 |
2.04 |
% |
||||||
Federal funds purchased & securities sold under agreements to repurchase |
39,519 |
11 |
0.11 |
% |
51,903 |
14 |
0.10 |
% |
||||||
Other borrowings |
534,219 |
6,176 |
4.60 |
% |
398,932 |
4,937 |
4.91 |
% |
||||||
Total interest-bearing liabilities |
5,311,044 |
33,741 |
2.53 |
% |
5,020,544 |
28,426 |
2.25 |
% |
||||||
Noninterest bearing deposits |
1,844,772 |
1,920,510 |
||||||||||||
Accrued expenses and other liabilities |
101,370 |
103,648 |
||||||||||||
Total liabilities |
7,257,186 |
7,044,702 |
||||||||||||
Tompkins Financial Corporation Shareholders’ equity |
715,299 |
620,789 |
||||||||||||
Noncontrolling interest |
1,247 |
1,491 |
||||||||||||
Total equity |
716,546 |
622,280 |
||||||||||||
Total liabilities and equity |
$ |
7,973,732 |
$ |
7,666,982 |
||||||||||
Interest rate spread |
2.15 |
% |
2.09 |
% |
||||||||||
Net interest income (TE)/margin on earning assets |
56,597 |
2.93 |
% |
52,627 |
2.82 |
% |
||||||||
Tax Equivalent Adjustment |
(316 |
) |
(268 |
) |
||||||||||
Net interest income |
$ |
56,281 |
$ |
52,359 |
||||||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||
Year to Date Period Ended |
Year to Date Period Ended |
|||||||||||||
December 31, 2024 |
December 31, 2023 |
|||||||||||||
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 |
$ |
14,052 |
$ |
741 |
5.27 |
% |
$ |
13,064 |
$ |
674 |
5.16 |
% |
||
Securities1 |
||||||||||||||
U.S. Government securities |
1,689,411 |
39,580 |
2.34 |
% |
1,920,678 |
32,432 |
1.69 |
% |
||||||
State and municipal2 |
88,414 |
2,254 |
2.55 |
% |
91,407 |
2,338 |
2.56 |
% |
||||||
Other securities |
3,277 |
235 |
7.17 |
% |
3,272 |
229 |
6.99 |
% |
||||||
Total securities |
1,781,102 |
42,069 |
2.36 |
% |
2,015,357 |
35,000 |
1.74 |
% |
||||||
FHLBNY and FRB stock |
35,369 |
3,203 |
9.06 |
% |
22,284 |
1,697 |
7.63 |
% |
||||||
Total loans and leases, net of unearned income2,3 |
5,768,575 |
302,780 |
5.25 |
% |
5,357,699 |
261,144 |
4.87 |
% |
||||||
Total interest-earning assets |
7,599,098 |
348,793 |
4.59 |
% |
7,408,404 |
298,515 |
4.03 |
% |
||||||
Other assets |
276,241 |
233,268 |
||||||||||||
Total assets |
$ |
7,875,339 |
$ |
7,641,672 |
||||||||||
LIABILITIES & EQUITY |
||||||||||||||
Deposits |
||||||||||||||
Interest-bearing deposits |
||||||||||||||
Interest bearing checking, savings, & money market |
$ |
3,553,942 |
$ |
64,647 |
1.82 |
% |
$ |
3,697,780 |
$ |
46,820 |
1.27 |
% |
||
Time deposits |
1,017,532 |
39,336 |
3.87 |
% |
793,709 |
23,988 |
3.02 |
% |
||||||
Total interest-bearing deposits |
4,571,474 |
103,983 |
2.27 |
% |
4,491,489 |
70,808 |
1.58 |
% |
||||||
Federal funds purchased & securities sold under agreements to repurchase |
42,752 |
46 |
0.11 |
% |
55,773 |
58 |
0.10 |
% |
||||||
Other borrowings |
638,721 |
32,443 |
5.08 |
% |
363,530 |
16,978 |
4.67 |
% |
||||||
Total interest-bearing liabilities |
5,252,947 |
136,472 |
2.60 |
% |
4,910,792 |
87,844 |
1.79 |
% |
||||||
Noninterest bearing deposits |
1,838,036 |
1,994,861 |
||||||||||||
Accrued expenses and other liabilities |
98,542 |
101,287 |
||||||||||||
Total liabilities |
7,189,525 |
7,006,940 |
||||||||||||
Tompkins Financial Corporation Shareholders’ equity |
684,417 |
633,267 |
||||||||||||
Noncontrolling interest |
1,397 |
1,465 |
||||||||||||
Total equity |
685,814 |
634,732 |
||||||||||||
Total liabilities and equity |
$ |
7,875,339 |
$ |
7,641,672 |
||||||||||
Interest rate spread |
1.99 |
% |
2.24 |
% |
||||||||||
Net interest income (TE)/margin on earning assets |
212,321 |
2.79 |
% |
210,671 |
2.84 |
% |
||||||||
Tax Equivalent Adjustment |
(1,219 |
) |
(1,157 |
) |
||||||||||
Net interest income |
$ |
211,102 |
$ |
209,514 |
||||||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
||||||||||||
Quarter-Ended |
Year-Ended |
|||||||||||
Period End Balance Sheet |
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Dec-24 |
||||||
Securities |
$ |
1,544,762 |
$ |
1,622,526 |
$ |
1,630,654 |
$ |
1,679,542 |
$ |
1,729,838 |
$ |
1,544,762 |
Total Loans |
6,019,922 |
5,881,261 |
5,761,864 |
5,640,524 |
5,605,935 |
6,019,922 |
||||||
Allowance for credit losses |
56,496 |
55,384 |
53,059 |
51,704 |
51,584 |
56,496 |
||||||
Total assets |
8,109,080 |
8,006,427 |
7,869,522 |
7,778,034 |
7,819,749 |
8,109,080 |
||||||
Total deposits |
6,471,805 |
6,577,896 |
6,285,896 |
6,449,616 |
6,399,847 |
6,471,805 |
||||||
Federal funds purchased and securities sold under agreements to repurchase |
37,036 |
67,506 |
35,989 |
43,681 |
50,996 |
37,036 |
||||||
Other borrowings |
790,247 |
539,327 |
773,627 |
522,600 |
602,100 |
790,247 |
||||||
Total common equity |
713,444 |
719,855 |
674,630 |
667,906 |
668,522 |
713,444 |
||||||
Total equity |
713,444 |
721,348 |
676,093 |
669,338 |
669,934 |
713,444 |
||||||
Average Balance Sheet |
||||||||||||
Average earning assets |
$ |
7,691,242 |
$ |
7,638,314 |
$ |
7,547,689 |
$ |
7,517,705 |
$ |
7,407,976 |
$ |
7,599,098 |
Average assets |
7,973,732 |
7,914,924 |
7,810,061 |
7,801,125 |
7,666,982 |
7,875,339 |
||||||
Average interest-bearing liabilities |
5,311,044 |
5,277,988 |
5,215,003 |
5,206,836 |
5,020,544 |
5,252,947 |
||||||
Average equity |
716,546 |
696,532 |
662,969 |
666,752 |
622,280 |
685,814 |
||||||
Share data |
||||||||||||
Weighted average shares outstanding (basic) |
14,230,297 |
14,215,607 |
14,214,574 |
14,211,910 |
14,194,503 |
14,218,106 |
||||||
Weighted average shares outstanding (diluted) |
14,312,497 |
14,283,255 |
14,239,626 |
14,238,357 |
14,246,024 |
14,268,443 |
||||||
Period-end shares outstanding |
14,436,363 |
14,394,255 |
14,395,204 |
14,405,019 |
14,405,920 |
14,436,363 |
||||||
Common equity book value per share |
$ |
49.42 |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
46.41 |
$ |
49.42 |
Tangible book value per share (Non-GAAP)** |
$ |
42.93 |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
39.88 |
$ |
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 |
$ |
56,281 |
$ |
53,193 |
$ |
50,953 |
$ |
50,675 |
$ |
52,359 |
$ |
211,102 |
Provision for credit loss expense |
1,411 |
2,174 |
2,172 |
854 |
1,761 |
6,611 |
||||||
Noninterest income |
20,829 |
23,385 |
21,776 |
22,137 |
18,850 |
88,127 |
||||||
Noninterest expense |
49,966 |
49,877 |
49,942 |
49,857 |
51,300 |
199,642 |
||||||
Income tax expense |
6,045 |
5,858 |
4,902 |
5,198 |
3,114 |
22,003 |
||||||
Net income attributable to Tompkins Financial Corporation |
19,658 |
18,638 |
15,682 |
16,872 |
15,003 |
70,850 |
||||||
Noncontrolling interests |
30 |
31 |
31 |
31 |
31 |
123 |
||||||
Basic earnings per share4 |
1.38 |
1.31 |
1.10 |
1.19 |
1.06 |
4.98 |
||||||
Diluted earnings per share4 |
1.37 |
1.30 |
1.10 |
1.18 |
1.05 |
4.97 |
||||||
Nonperforming Assets |
||||||||||||
Nonaccrual loans and leases |
$ |
50,548 |
$ |
62,381 |
$ |
62,253 |
$ |
62,544 |
$ |
62,165 |
$ |
50,548 |
Loans and leases 90 days past due and accruing |
323 |
193 |
215 |
151 |
101 |
323 |
||||||
Total nonperforming loans and leases |
50,871 |
62,574 |
62,468 |
62,695 |
62,266 |
50,871 |
||||||
OREO |
14,314 |
81 |
80 |
0 |
131 |
14,314 |
||||||
Total nonperforming assets |
$ |
65,185 |
$ |
62,655 |
$ |
62,548 |
$ |
62,695 |
$ |
62,397 |
$ |
65,185 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-Ended |
Year-Ended |
|||||||||||
Delinquency - Total loan and lease portfolio |
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Dec-24 |
||||||
Loans and leases 30-89 days past due and |
||||||||||||
accruing |
$ |
28,828 |
$ |
7,031 |
$ |
5,286 |
$ |
8,015 |
$ |
4,210 |
$ |
28,828 |
Loans and leases 90 days past due and accruing |
323 |
193 |
215 |
151 |
101 |
323 |
||||||
Total loans and leases past due and accruing |
29,151 |
7,224 |
5,501 |
8,166 |
4,311 |
29,151 |
||||||
Allowance for Credit Losses |
||||||||||||||||
Balance at beginning of period |
$ |
55,384 |
$ |
53,059 |
$ |
51,704 |
$ |
51,584 |
$ |
49,336 |
$ |
51,584 |
||||
Provision for credit losses |
1,969 |
3,237 |
1,864 |
348 |
2,658 |
$ |
7,418 |
|||||||||
Net loan and lease charge-offs (recoveries) |
857 |
912 |
509 |
228 |
410 |
$ |
2,506 |
|||||||||
Allowance for credit losses at end of period |
$ |
56,496 |
$ |
55,384 |
$ |
53,059 |
$ |
51,704 |
$ |
51,584 |
$ |
56,496 |
||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
||||||||||||||||
Balance at beginning of period |
$ |
2,021 |
$ |
3,084 |
$ |
2,776 |
$ |
2,270 |
$ |
3,167 |
$ |
2,270 |
||||
(Credit) provision for credit losses |
(558 |
) |
(1,063 |
) |
308 |
506 |
(897 |
) |
$ |
(807 |
) |
|||||
Allowance for credit losses at end of period |
$ |
1,463 |
$ |
2,021 |
$ |
3,084 |
$ |
2,776 |
$ |
2,270 |
$ |
1,463 |
||||
Loan Classification - Total Portfolio |
||||||||||||
Special Mention |
$ |
36,923 |
$ |
58,758 |
$ |
48,712 |
$ |
46,302 |
$ |
50,368 |
$ |
36,923 |
Substandard |
74,163 |
67,261 |
67,509 |
72,412 |
72,717 |
74,163 |
||||||
Ratio Analysis
Credit Quality |
||||||||||||
Nonperforming loans and leases/total loans and leases |
0.85 |
% |
1.06 |
% |
1.08 |
% |
1.11 |
% |
1.11 |
% |
0.85 |
% |
Nonperforming assets/total assets |
0.80 |
% |
0.78 |
% |
0.79 |
% |
0.81 |
% |
0.80 |
% |
0.80 |
% |
Allowance for credit losses/total loans and leases |
0.94 |
% |
0.94 |
% |
0.92 |
% |
0.92 |
% |
0.92 |
% |
0.94 |
% |
Allowance/nonperforming loans and leases |
111.06 |
% |
88.51 |
% |
84.94 |
% |
82.47 |
% |
82.84 |
% |
111.06 |
% |
Net loan and lease losses (recoveries) annualized/total average loans and leases |
0.06 |
% |
0.06 |
% |
0.04 |
% |
0.02 |
% |
0.03 |
% |
0.04 |
% |
Capital Adequacy |
||||||||||||
Tier 1 Capital (to average assets) |
9.27 |
% |
9.19 |
% |
9.15 |
% |
9.08 |
% |
9.08 |
% |
9.27 |
% |
Total Capital (to risk-weighted assets) |
13.08 |
% |
13.21 |
% |
13.26 |
% |
13.43 |
% |
13.36 |
% |
13.08 |
% |
Profitability (period-end) |
||||||||||||
Return on average assets * |
0.98 |
% |
0.94 |
% |
0.81 |
% |
0.87 |
% |
0.78 |
% |
0.90 |
% |
Return on average equity * |
10.91 |
% |
10.65 |
% |
9.51 |
% |
10.18 |
% |
9.56 |
% |
10.33 |
% |
Net interest margin (TE) * |
2.93 |
% |
2.79 |
% |
2.73 |
% |
2.73 |
% |
2.82 |
% |
2.79 |
% |
Average yield on interest-earning assets* |
4.67 |
% |
4.66 |
% |
4.56 |
% |
4.47 |
% |
4.34 |
% |
4.59 |
% |
Average cost of deposits* |
1.67 |
% |
1.67 |
% |
1.61 |
% |
1.54 |
% |
1.43 |
% |
1.62 |
% |
Average cost of funds* |
1.88 |
% |
2.01 |
% |
1.96 |
% |
1.86 |
% |
1.62 |
% |
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 tables. 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 |
|||||||||||
Dec-24 |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Dec-24 |
|||||||
Common equity book value per share (GAAP) |
$ |
49.42 |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
46.41 |
$ |
49.42 |
Total common equity |
$ |
713,444 |
$ |
719,855 |
$ |
674,630 |
$ |
667,906 |
$ |
668,522 |
$ |
713,444 |
Less: Goodwill and intangibles |
93,670 |
93,760 |
93,847 |
93,926 |
94,003 |
93,670 |
||||||
Tangible common equity (Non-GAAP) |
619,774 |
626,095 |
580,783 |
573,980 |
574,519 |
619,774 |
||||||
Ending shares outstanding |
14,436,363 |
14,394,255 |
14,395,204 |
14,405,019 |
14,405,920 |
14,436,363 |
||||||
Tangible book value per share (Non-GAAP) |
$ |
42.93 |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
39.88 |
$ |
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 2024 and 2023 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, 2023.
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/20250131969196/en/
Contacts
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753
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