Tompkins Financial Corporation Reports Record First Quarter Earnings

Company Release - 4/30/2021 9:00 AM ET

Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.72 for the first quarter of 2021, 224.5% over the first quarter of 2020. Net income was $25.6 million for the first quarter of 2021, an increase of 222.4% from the $7.9 million reported for the same period in 2020.

President and CEO, Mr. Stephen Romaine commented, "We are extremely pleased to start off 2021 with record quarterly earnings. Results for the quarter, when compared to the same period last year, reflected favorable revenue trends for all three business lines, including increased net interest income, increased insurance commissions, and increased investment services fees. At the same time, expenses for the quarter were down from the same quarter last year. Growth comparisons to the previous year are significantly impacted by the change in provision for credit losses from a $16.3 million expense in the first quarter of 2020, compared to a $2.5 million credit in the first quarter of 2021. The provision for the first quarter of 2020 reflected the highly uncertain economic conditions related to the onset of the COVID-19 pandemic and economic forecasts and other model assumptions relied upon by management in determining the allowance.”

SELECTED HIGHLIGHTS FOR THE FIRST QUARTER:

  • Diluted earnings per share of $1.72 represents the best quarter in the Company's history, and is up 224.5% over the same period in 2020.
  • Provision for credit losses was a $2.5 million credit for the first quarter of 2021, compared to an expense of $16.3 million for the same period last year.
  • Total loans of $5.3 billion at March 31, 2021 were up $355.0 million, or 7.2% over March 31, 2020. Loan growth over the prior period includes a $370.0 million increase related to loans originated under the Small Business Association (SBA) Paycheck Protection Program (PPP).
  • Total deposits of $6.9 billion at March 31, 2021, an increase of $1.5 billion, or 28.4% over March 31, 2020.

NET INTEREST INCOME
Net interest income was $55.0 million for the first quarter of 2021, up from $53.0 million for the same period in 2020, and down from $57.8 million for the most recent prior quarter. Net interest income for the current quarter included $2.8 million of net deferred loan fees associated with PPP loans, compared to net deferred loan fees of $4.5 million in the fourth quarter of 2020. There were no net deferred loan fees related to PPP loans in the first quarter of 2020. Net interest income in the first quarter of 2021 also benefited from lower rates paid on deposit products due to lower market interest rates.

Average loans for the quarter ended March 31, 2021 were up $377.3 million, or 7.7% compared to the same period in 2020. The increase in average loans was mainly in commercial loans, driven largely by PPP loans and commercial real estate loans. Asset yields for the quarter ended March 31, 2021, were down 84 basis points compared to the quarter ended March 31, 2020, which reflects the impact of reductions in market interest rates over the past twelve months as well as the increase in average securities and average interest bearing balances due from banks. While PPP loans were a significant contributor to average loan growth, increases in commercial real estate and residential loans were up 5.6% and 1.7%, respectively, over the same period in the prior year.

Average total deposits for the first quarter of 2021 were up $1.3 billion, or 25.4% compared to the same period in 2020. Average noninterest bearing deposits for the three months ended March 31, 2021 were up $540.0 million or 38.3% compared to the three months ended March 31, 2020. Average deposit balances during the first quarter of 2021 benefited from PPP loan originations, the majority of which were deposited in Tompkins checking accounts. For the first quarter of 2021, the average rate paid on interest-bearing deposit products decreased by 47 basis points from the same period in 2020 due to the overall decline in market interest rates. The total cost of interest-bearing liabilities was 0.38% at March 31, 2021, a decline of 54 basis points from March 31, 2020.

Net interest margin was 3.01% for the first quarter of 2021, compared to 3.44% reported for the same period in 2020, and 3.12% for the fourth quarter of 2020.

NONINTEREST INCOME
Noninterest income of $20.0 million was up 5.4% compared to the same period in 2020. Growth over the same quarter last year was supported by a 13.9% increase in insurance commissions and fees, an 11.2% increase in investment services income, and a 9.2% increase in card services income. These increases were partially offset by lower deposit fees and lower gains on securities transactions. Noninterest income represented 26.6% of total revenues for the first quarter of 2021.

NONINTEREST EXPENSE
Noninterest expense was $45.2 million for the first quarter of 2021, down $549,000, or 1.2%, from the first quarter of 2020. Salaries and employee benefits were relatively flat when compared to the same quarter last year. The decrease in noninterest expense for the first quarter of 2021 was primarily attributable to lower marketing expenses, which were down $447,000 from the first quarter of 2020.

INCOME TAX EXPENSE
The Company's effective tax rate was 20.7% for the first quarter of 2021, compared to 19.4% for the same period in 2020.

ASSET QUALITY
Provision for credit losses for the first quarter of 2021 was a credit of $2.5 million compared to an expense of $16.3 million for the same period in 2020. Net recoveries for the quarter ended March 31, 2021 were $180,000 compared to charge-offs of $1.2 million reported for the same period in 2020.

The allowance for credit losses represented 0.93% of total loans and leases at March 31, 2021, down from 1.06% at March 31, 2020, and 0.98% at December 31, 2020. Nonperforming loans and leases totaled $47.7 million at March 31, 2021, compared to $30.7 million at March 31, 2020, and $45.8 million at December 31, 2020. The ratio of the allowance to total nonperforming loans and leases was 103.38% at March 31, 2021, down compared to 170.74% at March 31, 2020, and 112.87% at December 31, 2020. Nonperforming assets represented 0.59% of total assets at March 31, 2021, up from 0.46% at March 31, 2020, and down from 0.60% at December 31, 2020.

Special Mention and Substandard loans and leases totaled $185.2 million at March 31, 2021, up compared to the $90.0 million at March 31, 2020, and down compared to the $189.9 million reported at December 31, 2020. Total Substandard loans and leases of $68.5 million at March 31, 2021, were in line with December 31, 2020, and up compared to the $52.9 million reported at March 31, 2020. The increases in nonperforming loans and leases and Substandard loans compared to prior year, were mainly related to the downgrades of credits in the loan portfolio related to the hospitality industry, which was significantly impacted by the COVID-19 pandemic. Included in the nonperforming loans and leases and Substandard loans and leases are 12 loans totaling $35.5 million that are currently in deferral status.

During 2020 and 2021, overall credit quality has been supported by several plans initiated by the Company in response to the COVID-19 pandemic. As previously announced, Tompkins initiated and participated in a number of credit initiatives to support customers who have been impacted by the economic conditions associated with the COVID-19 pandemic. The Company implemented a payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19. As of March 31, 2021, total loans that continued in a deferral status amounted to approximately $195.6 million, representing 3.7% of total loans.

As previously noted, the Company participated in the PPP, which provides SBA borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related expenses and certain other eligible business operating costs, all in accordance with the rules and regulations established by the SBA. The Company began accepting applications for PPP loans on April 3, 2020, and had funded 2,998 loans totaling approximately $465.6 million when the initial program ended. As of April 10, 2021, approximately 2,314 of these PPP loans totaling $300.8 million had been forgiven by the SBA under the terms of the PPP program.

In addition, on January 19, 2021, the Company began accepting both first draw and second draw applications for the reopening of the PPP program. As of April 10, 2021, the Company had submitted 2,013 applications totaling $223.4 million to the SBA, of which 1,919 applications totaling $215.9 million had been approved by the SBA and disbursed to customers.

CAPITAL POSITION
Capital ratios at March 31, 2021 remained well above the regulatory minimums for well-capitalized institutions. The ratio of Total Capital to Risk-Weighted Assets improved to 14.62% at March 31, 2021, up from 13.62% at March 31, 2020, and 14.39% at December 31, 2020. The ratio of Tier 1 capital to average assets was 8.89% at March 31, 2021, compared to 9.53% at March 31, 2020, and 8.75% at December 31, 2020.

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, and 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 contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Examples of forward-looking statements in this press release include, without limitation, those regarding the novel coronavirus (COVID-19) and our plans in response to the coronavirus. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain 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. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Reports 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: changes in general economic, market and regulatory conditions; the severity and duration of the COVID-19 pandemic and the impact of COVID-19 (including the government’s response thereto) on economic and financial markets, potential regulatory actions, and modifications to our operations, products, and services relating thereto; disruptions in our and our customers’ operations and loss of revenue due to pandemics, epidemics, widespread health emergencies, government-imposed travel/business restrictions, or outbreaks of infectious diseases such as the coronavirus, and the associated adverse impact on our financial position, liquidity, and our customers’ abilities to repay their obligations to us or willingness to obtain financial services products from the Company; the development of an interest rate environment that may adversely affect the Company’s interest rate spread, 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, such as the Dodd-Frank Act, Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; legislative and regulatory changes in response to COVID-19 with which we and our subsidiaries must comply, including the CARES Act and the Consolidated Appropriations Act, 2021 and the rules and regulations promulgated thereunder, and state and local government mandates; technological developments and changes; 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; uncertainties arising from national and global events, including the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. 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)

As of

As of

ASSETS

03/31/2021

12/31/2020

 

 

 

Cash and noninterest bearing balances due from banks

$

20,482

 

$

21,245

 

Interest bearing balances due from banks

497,943

 

367,217

 

Cash and Cash Equivalents

518,425

 

388,462

 

 

 

 

Available-for-sale debt securities, at fair value (amortized cost of $1,941,284 at March 31, 2021 and $1,599,894 at December 31, 2020)

1,934,815

 

1,627,193

 

Equity securities, at fair value (amortized cost $916 at March 31, 2021 and $929 at December 31, 2020)

916

 

929

 

Total loans and leases, net of unearned income and deferred costs and fees

5,292,793

 

5,260,327

 

Less: Allowance for credit losses

49,339

 

51,669

 

Net Loans and Leases

5,243,454

 

5,208,658

 

 

 

 

Federal Home Loan Bank and other stock

16,382

 

16,382

 

Bank premises and equipment, net

87,518

 

88,709

 

Corporate owned life insurance

85,157

 

84,736

 

Goodwill

92,447

 

92,447

 

Other intangible assets, net

4,601

 

4,905

 

Accrued interest and other assets

111,627

 

109,750

 

Total Assets

$

8,095,342

 

$

7,622,171

 

LIABILITIES

 

 

Deposits:

 

 

Interest bearing:

 

 

Checking, savings and money market

4,135,067

 

3,761,933

 

Time

749,792

 

746,234

 

Noninterest bearing

2,061,682

 

1,929,585

 

Total Deposits

6,946,541

 

6,437,752

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

47,496

 

65,845

 

Other borrowings

265,000

 

265,000

 

Trust preferred debentures

13,260

 

13,220

 

Other liabilities

113,109

 

122,665

 

Total Liabilities

$

7,385,406

 

$

6,904,482

 

EQUITY

 

 

Tompkins Financial Corporation shareholders' equity:

 

 

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,942,695 at March 31, 2021; and 14,964,389 at December 31, 2020

1,494

 

1,496

 

Additional paid-in capital

333,247

 

333,976

 

Retained earnings

435,990

 

418,413

 

Accumulated other comprehensive loss

(56,950)

 

(32,074)

 

Treasury stock, at cost – 118,454 shares at March 31, 2021, and 124,849 shares at December 31, 2020

(5,288)

 

(5,534)

 

Total Tompkins Financial Corporation Shareholders’ Equity

708,493

 

716,277

 

Noncontrolling interests

1,443

 

1,412

 

Total Equity

$

709,936

 

$

717,689

 

Total Liabilities and Equity

$

8,095,342

 

$

7,622,171

 

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data) (Unaudited)

Three Months Ended

 

03/31/2021

03/31/2020

INTEREST AND DIVIDEND INCOME

 

 

Loans

$

54,206

 

$

55,614

 

Due from banks

85

 

6

 

Available-for-sale debt securities

5,250

 

7,144

 

Federal Home Loan Bank and other stock

213

 

435

 

Total Interest and Dividend Income

59,754

 

$

63,199

 

INTEREST EXPENSE

 

 

Time certificates of deposits of $250,000 or more

639

 

843

 

Other deposits

2,511

 

6,356

 

Federal funds purchased and securities sold under agreements to repurchase

16

 

36

 

Trust preferred debentures

175

 

289

 

Other borrowings

1,376

 

2,706

 

Total Interest Expense

4,717

 

10,230

 

Net Interest Income

55,037

 

52,969

 

Less: (Credit) provision for credit loss expense

(2,510)

 

16,294

 

Net Interest Income After Provision for Credit Loss Expense

57,547

 

36,675

 

NONINTEREST INCOME

 

 

Insurance commissions and fees

9,166

 

8,045

 

Investment services income

4,673

 

4,202

 

Service charges on deposit accounts

1,470

 

1,983

 

Card services income

2,383

 

2,183

 

Other income

1,974

 

2,104

 

Net gain on securities transactions

317

 

443

 

Total Noninterest Income

19,983

 

18,960

 

NONINTEREST EXPENSE

 

 

Salaries and wages

22,660

 

22,494

 

Other employee benefits

5,484

 

5,684

 

Net occupancy expense of premises

3,462

 

3,328

 

Furniture and fixture expense

1,950

 

1,985

 

Amortization of intangible assets

330

 

374

 

Other operating expense

11,305

 

11,875

 

Total Noninterest Expenses

45,191

 

45,740

 

Income Before Income Tax Expense

32,339

 

9,895

 

Income Tax Expense

6,680

 

1,909

 

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

25,659

 

7,986

 

Less: Net Income Attributable to Noncontrolling Interests

33

 

37

 

Net Income Attributable to Tompkins Financial Corporation

$

25,626

 

7,949

 

Basic Earnings Per Share

$

1.73

 

$

0.53

 

Diluted Earnings Per Share

$

1.72

 

$

0.53

 

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

 

Quarter Ended
March 31, 2021

Quarter Ended
March 31, 2020

(Dollar amounts in thousands)

Average
Balance
(QTD)

Interest

Average
Yield/Rate

Average
Balance
(QTD)

Interest

Average
Yield/Rate

ASSETS

 

 

 

 

 

 

Interest-earning assets

 

 

 

 

 

 

Interest-bearing balances due from banks

$

408,642

 

$

85

 

0.08

%

$

1,525

 

$

6

 

1.58

%

Securities (1)

 

 

 

 

 

 

U.S. Government securities

1,635,143

 

4,612

 

1.14

%

1,194,754

 

6,576

 

2.21

%

State and municipal (2)

120,959

 

775

 

2.60

%

97,480

 

666

 

2.75

%

Other securities (2)

3,425

 

23

 

2.75

%

3,422

 

36

 

4.23

%

Total securities

1,759,527

 

5,410

 

1.25

%

1,295,656

 

7,278

 

2.26

%

FHLBNY and FRB stock

16,382

 

213

 

5.27

%

26,558

 

435

 

6.59

%

Total loans and leases, net of unearned income (2)(3)

5,291,295

 

54,454

 

4.17

%

4,914,034

 

55,906

 

4.58

%

Total interest-earning assets

7,475,846

 

60,162

 

3.26

%

6,237,773

 

63,625

 

4.10

%

Other assets

350,826

 

 

 

435,175

 

 

 

Total assets

$

7,826,672

 

 

 

$

6,672,948

 

 

 

LIABILITIES & EQUITY

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

Interest bearing checking, savings, & money market

3,949,304

 

1,093

 

0.11

%

3,212,543

 

4,366

 

0.55

%

Time deposits

749,328

 

2,057

 

1.11

%

680,248

 

2,833

 

1.68

%

Total interest-bearing deposits

4,698,632

 

3,150

 

0.27

%

3,892,791

 

7,199

 

0.74

%

Federal funds purchased & securities sold under agreements to repurchase

59,584

 

16

 

0.11

%

63,528

 

36

 

0.23

%

Other borrowings

265,001

 

1,376

 

2.11

%

498,428

 

2,706

 

2.18

%

Trust preferred debentures

13,234

 

175

 

5.35

%

17,050

 

289

 

6.82

%

Total interest-bearing liabilities

5,036,451

 

4,717

 

0.38

%

4,471,797

 

10,230

 

0.92

%

Noninterest bearing deposits

1,949,643

 

 

 

1,409,661

 

 

 

Accrued expenses and other liabilities

119,860

 

 

 

112,673

 

 

 

Total liabilities

7,105,954

 

 

 

5,994,131

 

 

 

Tompkins Financial Corporation Shareholders’ equity

719,290

 

 

 

677,394

 

 

 

Noncontrolling interest

1,428

 

 

 

1,423

 

 

 

Total equity

720,718

 

 

 

678,817

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

7,826,672

 

 

 

$

6,672,948

 

 

 

Interest rate spread

 

 

2.88

%

 

 

3.18

%

Net interest income/margin on earning assets

 

55,445

 

3.01

%

 

53,395

 

3.44

%

 

 

 

 

 

 

 

Tax Equivalent Adjustment

 

(408)

 

 

 

(426)

 

 

Net interest income per consolidated financial statements

 

$

55,037

 

 

 

$

52,969

 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

Quarter-Ended

Year-Ended

Period End Balance Sheet

Mar-21

Dec-20

Sep-20

Jun-20

Mar-20

Dec-20

Securities

$

1,935,731

 

$

1,628,122

 

$

1,667,698

 

$

1,336,087

 

$

1,353,567

 

$

1,628,122

 

Total Loans

5,292,793

 

5,260,327

 

5,398,297

 

5,424,285

 

4,937,822

 

5,260,327

 

Allowance for credit losses

49,339

 

51,669

 

52,293

 

52,082

 

52,404

 

51,669

 

Total assets

8,095,342

 

7,622,171

 

7,794,502

 

7,582,056

 

6,743,114

 

7,622,171

 

Total deposits

6,946,541

 

6,437,752

 

6,601,238

 

6,377,521

 

5,409,363

 

6,437,752

 

Federal funds purchased and securities sold under agreements to repurchase

47,496

 

65,845

 

63,573

 

50,889

 

68,993

 

65,845

 

Other borrowings

265,000

 

265,000

 

285,000

 

325,000

 

457,983

 

265,000

 

Trust preferred debentures

13,260

 

13,220

 

17,163

 

17,120

 

17,078

 

13,220

 

Total common equity

708,493

 

716,277

 

712,104

 

696,553

 

681,153

 

716,277

 

Total equity

709,936

 

717,689

 

713,611

 

698,029

 

682,597

 

717,689

 

 

Average Balance Sheet

 

 

 

 

 

 

Average earning assets

$

7,475,846

 

$

7,408,335

 

$

7,204,049

 

$

6,616,079

 

$

6,237,773

 

$

6,868,958

 

Average assets

7,826,672

 

7,758,159

 

7,582,009

 

7,413,945

 

6,672,948

 

7,358,478

 

Average interest-bearing liabilities

5,036,451

 

5,010,037

 

4,861,890

 

4,825,753

 

4,471,797

 

4,793,154

 

Average equity

720,718

 

719,114

 

709,484

 

690,475

 

678,817

 

699,554

 

 

Share data

 

 

 

 

 

 

Weighted average shares outstanding (basic)

14,676,410

 

14,715.124

 

14,697.532

 

14,681.956

 

14,718.948

 

14,703,390

 

Weighted average shares outstanding (diluted)

14,757.558

 

14,751.303

 

14,727.741

 

14,714.848

 

14,774.269

 

14,742,040

 

Period-end shares outstanding

14,906.785

 

14,928.479

 

14,926.252

 

14,914.458

 

14,907.947

 

14,928,479

 

Common equity book value per share

$

47.53

 

$

47.98

 

$

47.71

 

$

46.70

 

$

45.69

 

$

47.98

 

 

Income Statement

 

 

 

 

 

 

Net interest income

$

55,037

 

$

57,751

 

$

58,253

 

$

56,366

 

$

52,969

 

$

225,339

 

(Credit) provision for credit loss expense

(2,510)

 

6

 

199

 

(348)

 

16,294

 

16,151

 

Noninterest income

19,983

 

18,836

 

18,887

 

17,177

 

18,960

 

73,860

 

Noninterest expense

45,191

 

46,405

 

46,349

 

46,888

 

45,740

 

185,382

 

Income tax expense

6,680

 

6,145

 

6,330

 

5,540

 

1,909

 

19,924

 

Net income attributable to Tompkins Financial Corporation

25,626

 

23,978

 

24,230

 

21,431

 

7,949

 

77,588

 

Noncontrolling interests

33

 

53

 

32

 

32

 

37

 

154

 

Basic earnings per share (4)

1.73

 

1.61

 

1.63

 

1.44

 

0.53

 

5.22

 

Diluted earnings per share (4)

1.72

 

1.61

 

1.63

 

1.44

 

0.53

 

5.20

 

 

Nonperforming Assets

 

 

 

 

 

 

Nonaccrual loans and leases

$

41,656

 

$

38,976

 

$

26,944

 

$

23,183

 

$

23,556

 

$

38,976

 

Loans and leases 90 days past due and accruing

0

 

0

 

0

 

0

 

0

 

0

 

Troubled debt restructuring not included above

6,069

 

6,803

 

6,864

 

6,988

 

7,137

 

6,803

 

Total nonperforming loans and leases

47,725

 

45,779

 

33,808

 

30,171

 

30,693

 

45,779

 

OREO

88

 

88

 

196

 

274

 

466

 

88

 

Total nonperforming assets

$

47,813

 

$

45,867

 

$

34,004

 

$

30,445

 

$

31,159

 

$

45,867

 

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

 

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Mar-21

Dec-20

Sep-20

Jun-20

Mar-20

Dec-20

Loans and leases 30-89 days past due and
accruing

$

1,790

 

$

3,012

 

$

6,875

 

$

8,352

 

$

9,328

 

$

3,012

 

Loans and leases 90 days past due and accruing

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

Total loans and leases past due and accruing

 

1,790

 

 

3,012

 

 

6,875

 

 

8,352

 

 

9,328

 

 

3,012

 

 

Allowance for Credit Losses

Balance at beginning of period

$

51,669

 

$

52,293

 

$

52,082

 

$

52,404

 

$

39,892

 

$

39,892

 

Impact of adopting ASC 326

 

0

 

 

0

 

 

0

 

 

0

 

 

(2,534

)

 

(2,534

)

(Credit) provision for credit losses

 

(2,510

)

 

6

 

 

199

 

 

(348

)

 

16,294

 

 

16,151

 

Net loan and lease (recoveries) charge-offs

 

(180

)

 

630

 

 

(12

)

 

(26

)

 

1,248

 

 

1,840

 

Allowance for credit losses at end of period

$

49,339

 

$

51,669

 

$

52,293

 

$

52,082

 

$

52,404

 

$

51,669

 

 

Loan Classification - Total Portfolio

Special Mention

$

116,689

 

$

121,253

 

$

122,652

 

$

44,741

 

$

37,121

 

$

121,253

 

Substandard

 

68,487

 

 

68,645

 

 

45,384

 

 

48,046

 

 

52,894

 

 

68,645

 

 

Ratio Analysis

 

Credit Quality

Nonperforming loans and leases/total loans and leases (5)

 

0.90

%

 

0.87

%

 

0.63

%

 

0.56

%

 

0.62

%

 

0.87

%

Nonperforming assets/total assets

 

0.59

%

 

0.60

%

 

0.44

%

 

0.40

%

 

0.46

%

 

0.60

%

Allowance for credit losses/total loans and leases

 

0.93

%

 

0.98

%

 

0.97

%

 

0.96

%

 

1.06

%

 

0.98

%

Allowance/nonperforming loans and leases

 

103.38

%

 

112.87

%

 

154.68

%

 

172.62

%

 

170.74

%

 

112.87

%

Net loan and lease losses annualized/total average loans and leases

 

(0.01

)%

 

0.05

%

 

0.00

%

 

0.00

%

 

0.10

%

 

0.04

%

 

Capital Adequacy

Tier 1 Capital (to average assets)

 

8.89

%

 

8.75

%

 

8.85

%

 

8.79

%

 

9.53

%

 

8.75

%

Total Capital (to risk-weighted assets)

 

14.62

%

 

14.39

%

 

14.26

%

 

13.95

%

 

13.62

%

 

14.39

%

 

Profitability (period-end)

Return on average assets *

 

1.33

%

 

1.23

%

 

1.27

%

 

1.16

%

 

0.48

%

 

1.05

%

Return on average equity *

 

14.42

%

 

13.26

%

 

13.59

%

 

12.48

%

 

4.71

%

 

11.09

%

Net interest margin (TE) *

 

3.01

%

 

3.12

%

 

3.26

%

 

3.45

%

 

3.44

%

 

3.31

%

* Quarterly ratios have been annualized

(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 2021 and 2020 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, 2020.
(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.
(5) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans and leases. The risk of credit loss on these loans has been considered by virtue of the Company's estimate of acquisition-date fair value and these loans are considered accruing as the Company primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.

Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753

Source: Tompkins Financial Corporation