Tompkins Financial Corporation Reports Strong Third Quarter Operating Results

Before you go, we thought you'd like these...
Before you go close icon

Tompkins Financial Corporation Reports Strong Third Quarter Operating Results

ITHACA, N.Y.--(BUSINESS WIRE)-- Tompkins Financial Corporation (TMP-NYSE MKT LLC)

Tompkins Financial Corporation today released operating results and selected other financial information for the three month and nine month periods ended September 30, 2012. President and CEO, Stephen S. Romaine said, "The current quarter is the first reporting period reflecting results inclusive of the VIST Financial acquisition. We are pleased that our diluted per share earnings for the quarter, excluding merger related expenses, reflect an increase of 22.5% over the same quarter last year. We are also pleased that the merger related expenses and credit marks associated with the transaction were in line with our original projections. The VIST acquisition represents our first expansion into the Pennsylvania market and we are very excited by the opportunity to leverage the full capabilities of the Tompkins business model in this attractive market."


THIRD QUARTER 2012 SELECTED HIGHLIGHTS:

  • Net income for the third quarter was $3.5 million, or $0.25 diluted earnings per share, compared to $7.9 million, or $0.71 diluted earnings per share for the same period in 2011. Net income for the third quarter 2012 was reduced by after-tax merger related expenses of $8.4 million.
  • Operating income, which excludes merger related expenses, was $11.9 million for the quarter, or $0.87 diluted operating earnings per share. This represents an increase of 22.5% over the $0.71 diluted operating earnings per share reported for the third quarter of 2011.
  • Return on average equity was 3.38% for the quarter, compared to 10.29% in the third quarter of 2011. Net income for the third quarter 2012 was reduced by after-tax merger related expenses of $8.4 million. Operating return on shareholders' tangible equity was 15.2% for the quarter, compared to 12.3% for the same period in 2011.
  • Total loans of $2.9 billion at September 30, 2012, were up $910.1 million from the second quarter of 2012, which included $869.2 million of loans acquired from VIST Bank. Organic loan growth was 4.5% annualized during the third quarter.
  • Total deposits of $4.0 billion at September 30, 2012, were up $1.3 million from the second quarter of 2012, which included $1.2 million of deposits acquired from VIST Bank. Organic deposit growth was 11.7% annualized during the third quarter.

NET INTEREST INCOME

The net interest margin for the third quarter of 2012 was 3.66%, an improvement of 4.0% over the second quarter of 2012, and down 1.3% from the same period in 2011. The Company reported $36.7 million in net interest income for the third quarter of 2012, which included the addition of VIST Bank acquired on August 1, 2012. During the third quarter, continued improvements in the cost of funds offset the decline in the yield on average earning assets.

NONINTEREST INCOME

Noninterest income was up $2.5 million or 20.0% over the same period in 2011. Insurance commissions and fees and card services income were up for both the quarter and year-to-date periods, primarily as a result of the addition of VIST Bank. The increase was partially offset by lower service charges on deposit accounts, which were impacted by regulatory changes implemented in the first quarter of 2012. Investment services income was down compared to the same period in 2011, mainly a result of a decision in the third quarter of 2011 to stop providing services for external broker dealer relationships. Other income includes $350,000 related to a bonus for a merchant servicing contract entered into in the third quarter of 2012.

NONINTEREST EXPENSE

Noninterest expense for the third quarter of 2012 was $46.2 million, up 92.7% from the same period last year. The increase was mainly a result of $13.8 million in merger and severance costs incurred in the third quarter of 2012. Excluding these items from the third quarter of 2012, non-interest expense increased $8.4 million or 35.0%, primarily due to the addition of VIST Bank's operating expenses.

ASSET QUALITY

Asset quality trends on originated loans show improvement when compared to the same period last year and were stable compared to prior quarter. Originated loans and leases exclude loans acquired in the VIST acquisition. The ratio of nonperforming assets to total assets of 0.88% at September 30, 2012, has improved for seven consecutive quarters and remains well below the most recent peer averages of 2.33% published as of June 30, 2012, by the Federal Reserve1.

Provision for loan and lease losses was $1.0 million for the third quarter of 2012, which is in line with the second quarter 2012 but down from $4.9 million in the third quarter of 2011.

The Company's allowance for loan and lease losses totaled $26.6 million at September 30, 2012, which represented 1.29% of total originated loans, compared to $27.6 million and 1.39% at December 31, 2011. The allowance for loan and lease losses covered 69.01% of originated nonperforming loans and leases as of September 30, 2012, up from the 66.65% at December 31, 2011.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital as a percentage of average assets at September 30, 2012, was 8.50%; and the ratio of total capital to risk-weighted assets was 12.42%.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company with $4.9 billion in assets 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, The Bank of Castile, Mahopac National Bank, VIST Bank, Tompkins Insurance Agencies, Inc., and 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.

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 a 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.

"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 ofAs of
ASSETS09/30/201212/31/2011
 
Cash and noninterest bearing balances due from banks$89,056$47,297
Interest bearing balances due from banks53,6102,170
Money market funds  0   100
Cash and Cash Equivalents142,66649,567
 
Trading securities, at fair value17,37319,598
Available-for-sale securities, at fair value1,474,4021,143,546
Held-to-maturity securities, fair value of $27,908 at September 30, 2012, and $27,255
at December 31, 201127,50326,673
Originated loans and leases, net of unearned income and deferred costs and fees (2)2,060,5391,981,849
Less: Allowance for originated loan and lease losses26,63227,593
Acquired loans and leases, covered and non-covered (3)  869,211   0
Net Loans and Leases2,903,1181,954,256
 
Federal Home Loan Bank stock and Federal Reserve Bank stock20,70019,070
Bank premises and equipment, net53,91544,712
Corporate owned life insurance64,36443,044
Goodwill95,56643,898
Other intangible assets, net19,2934,096
Accrued interest and other assets  105,886   51,788
 Total Assets $4,924,786  $3,400,248
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market2,187,0831,356,870
Time1,055,825687,321
Noninterest bearing  794,736   616,373
Total Deposits4,037,6442,660,564
Federal funds purchased and securities sold under agreements to repurchase206,996169,090
Other borrowings, including certain amounts at fair value of $11,955 at September 30, 2012
and $12,093 at December 31, 2011125,461186,075
Trust preferred debentures43,65125,065
Other liabilities  70,084   60,311
 Total Liabilities $4,483,836  $3,101,105
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,394,140 at September 30, 2012; and 11,159,466 at December 31, 20111,4391,116
Additional paid-in capital332,839206,395
Retained earnings103,15096,445
Accumulated other comprehensive income (loss)4,660(3,677)
Treasury stock, at cost - 97,596 shares at September 30, 2012, and 95,105 shares
at December 31, 2011(2,688)(2,588)
 
Total Tompkins Financial Corporation Shareholders' Equity439,400297,691
Noncontrolling interests  1,550   1,452
 Total Equity $440,950  $299,143
 Total Liabilities and Equity $4,924,786  $3,400,248
 

 

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 Three Months Ended Nine Months Ended

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

09/30/2012 09/30/201109/30/2012 09/30/2011
INTEREST AND DIVIDEND INCOME
Loans$34,003$26,134$84,709$77,718
Due from banks611410
Federal funds sold0126
Trading securities182213569668
Available-for-sale securities8,3177,52423,01623,110
Held-to-maturity securities208249658944
Federal Home Loan Bank stock and Federal Reserve Bank stock  203  212  620  719
Total Interest and Dividend Income  42,919  34,334  109,588  103,175
INTEREST EXPENSE

Time certificates of deposits of $100,000 or more

1,0438172,4972,534
Other deposits2,1052,4495,9307,639

Federal funds purchased and securities sold under agreements to

repurchase

1,1741,2043,3403,743
Trust preferred debentures4894051,2961,197
Other borrowings  1,365  1,546  4,231  4,655
Total Interest Expense  6,176  6,421  17,294  19,768
Net Interest Income  36,743  27,913  92,294  83,407
Less: Provision for loan and lease losses  1,042  4,870  3,178  7,785
Net Interest Income After Provision for Loan and Lease Losses  35,701  23,043  89,116  75,622
NONINTEREST INCOME
Investment services income3,6143,42510,50411,090
Insurance commissions and fees5,7863,57313,18410,406
Service charges on deposit accounts1,9882,1655,3666,256
Card services income1,5041,2714,3533,785
Mark-to-market (loss) gain on trading securities(41)55(198)170
Mark-to-market (loss) gain on liabilities held at fair value(27)(461)138(488)
Net other-than-temporary impairment losses(55)0(120)0
Other income2,1161,9985,1515,217
Net (loss) gain on securities transactions   Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Sun, Dec 11
Set Your Location
City, State, or Zip