ITHACA, N.Y.--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.30 for the third quarter of 2024, up 18.2% from the immediate prior quarter, and up 155.3% from the diluted earnings (loss) per share of $(2.35) reported in the third quarter of 2023. Net income for the third quarter of 2024 was $18.6 million, up $3.0 million or 18.9% compared to the second quarter of 2024, and up $52.0 million, or 155.9%, when compared to the net loss of $(33.4) million reported for the third quarter of 2023. The increase in diluted earnings per share and net income compared to the results for the third quarter of 2023 largely reflects the Company's sale of $429.6 million of available-for-sale securities, which resulted in a pre-tax loss of $62.9 million (or $3.34 per share) in the third quarter of 2023.
For the nine months ended September 30, 2024, diluted earnings (loss) per share were $3.59, up from $(0.39) for the nine months ended September 30, 2023. Year-to-date net income (loss) was $51.2 million for the nine months ended September 30, 2024, up $56.7 million when compared to $(5.5) million for the prior year period. The growth in year-to-date diluted earnings per share and net income was mainly due the Company's sale of $510.5 million of available-for-sale securities which resulted in a pre-tax loss of $70.0 million (or $3.69 per share) for the nine months ended September 30, 2023.
Tompkins President and CEO, Stephen Romaine, commented, "Our third quarter net income was up over 18% as compared to the second quarter, driven by a strengthening net interest margin and growth across our business. For the third quarter our net interest margin expanded 6 basis points, loan balances grew over 8% annualized and our fee-based services continue to provide diversified growing revenue as total noninterest income represented 31% of total revenue. Year-to-date, our operating results were further supported by lower expenses, as noninterest expenses were down 1.5% as compared to prior year. As we are seeing improving profitability we believe that we remain well positioned to continue to drive growth through quality customer relationships supported by our strong capital and liquidity."
SELECTED HIGHLIGHTS FOR THE PERIOD:
- Net interest margin for the third quarter of 2024 was 2.79%, improved from the immediate prior quarter of 2.73%, and the 2.75% reported for the same period of 2023.
- Total average cost of funds for the third quarter of 2024 was up 5 basis points compared to the second quarter of 2024, down from a 10 basis point increase from the first quarter of 2024 to the second quarter of 2024.
- Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the third quarter of 2024 were up $648,000 or 3.2% compared to the third quarter of 2023.
- Total noninterest expenses for the third quarter of 2024 were in line with the second quarter of 2024 and the third quarter of 2023.
- Total loans at September 30, 2024 were up $119.4 million, or 2.1% (8.2% on an annualized basis) compared to June 30, 2024, and up $446.4 million, or 8.2%, from September 30, 2023.
- Total deposits at September 30, 2024 were $6.6 billion, up $292.0 million, or 4.7%, from June 30, 2024, and down $45.5 million, or 0.7%, from September 30, 2023.
- Loan to deposit ratio at September 30, 2024 was 89.4%, compared to 91.7% at June 30, 2024, and 82.1% at September 30, 2023.
- Regulatory Tier 1 capital to average assets was 9.19% at September 30, 2024, up compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.
NET INTEREST INCOME
Net interest income was $53.2 million for the third quarter of 2024, up $2.2 million or 4.4% compared to the second quarter of 2024, and $2.2 million or 4.3% compared to the third quarter of 2023. The increase in net interest income compared to both the second quarter of 2024, and third quarter of 2023, resulted primarily from the increase in average loan balances and the average yield on those loan balances, partially offset by the increase in cost of deposits.
For the nine months ended September 30, 2024, net interest income was $154.8 million, down $2.3 million or 1.5% when compared to the same period in 2023.
Net interest margin was 2.79% for the third quarter of 2024, up 6 basis points when compared to the immediate prior quarter, and up 4 basis points from the 2.75% reported for the third quarter of 2023. The increase in net interest margin, when compared to the prior periods, was mainly driven by higher yields on interest earning assets and higher average loan balances, and was partially offset by higher funding costs.
Average loans for the quarter ended September 30, 2024 were up $143.4 million, or 2.5%, from the second quarter of 2024, and were up $445.7 million, or 8.3%, compared to the same period prior year. 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 September 30, 2024 was 4.66%, which was up from 4.56% for the quarter ended June 30, 2024, and up from 4.06% for the quarter ended September 30, 2023.
Average total deposits of $6.4 billion for the third quarter of 2024 were up $41.4 million, or 0.7%, compared to the second quarter of 2024, and down $67.0 million or 1.0% compared to the same period in 2023. The cost of interest-bearing deposits of 2.35% for the third quarter of 2024 was up 8 basis points from 2.27% for the second quarter of 2024, and up 61 basis points from 1.74% for the third quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2024 was 28.9% compared to 29.1% for the second quarter of 2024, and 31.0% for the third quarter of 2023. The average cost of interest-bearing liabilities for the third quarter of 2024 of 2.71% represents an increase of 7 basis points over the second quarter of 2024, and an increase of 73 basis points over the same period in 2023.
NONINTEREST INCOME
Noninterest income of $23.4 million for the third quarter of 2024 was up $65.0 million or 156.2% compared to the same period in 2023. Year-to-date noninterest income of $67.3 million was up $75.9 million or 881.7% compared to the same period in 2023. The increase in quarterly and year-to-date noninterest income compared to the same periods in 2023 was mainly due to the $62.9 million and $70.0 million, respectively, pre-tax loss on the sale of available-for-sale securities in 2023 as discussed above. Other income was up $1.3 million for the quarter ended September 30, 2024 compared to the same period in 2023, and included increases in gains on loan sales, derivative swap fee income, and BOLI income. Also included in the increase for the third quarter of 2024 over the same period prior year were fee-based revenues which included wealth management fees, up $583,000, service charges on deposit accounts, up $118,000, card services income, up $61,000.
NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the third quarter of 2024, which was in line with the third quarter of 2023. Year-to-date noninterest expense for the period ended September 30, 2024 was $149.7 million, a decrease of $2.3 million or 1.5% compared to the $152.0 million reported for the same period in 2023. The year-over-year decrease was mainly driven by lower other expenses (legal fees, marketing, professional fees, retirement plan expense, and travel and meeting expense), partially offset by higher FDIC insurance expense.
INCOME TAX EXPENSE
The provision for income tax expense was $5.9 million for an effective rate of 23.9% for the third quarter of 2024, compared to tax benefit of $8.3 million and an effective rate of 20.0% for the same quarter in 2023. For the nine months ended September 30, 2024, the provision for income tax expense was $16.0 million and the effective tax rate was 23.7% compared to a tax benefit of $619,000 and an effective tax rate of 10.3% for the same period in 2023. Lower tax expense for both the quarter and year-to-date periods in 2023 was mainly a result of lower income associated with the loss on the sale of securities described above.
ASSET QUALITY
The allowance for credit losses represented 0.94% of total loans and leases at September 30, 2024, up from 0.92% reported at both June 30, 2024 and December 31, 2023. The increase in the allowance for credit losses coverage ratio was driven primarily by updated economic forecasts for unemployment and gross domestic product for the quarter, as well as model assumption updates for prepayment speeds, curtailment rates, and recovery lag. 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 88.51% at September 30, 2024, compared to 84.94% at June 30, 2024, and 156.96% at September 30, 2023. The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below.
Provision for credit losses for the third quarter of 2024 was $2.2 million compared to $1.2 million for the same period in 2023. Provision for credit losses for the nine months ended September 30, 2024 was $5.2 million compared to $2.6 million for the nine months ended September 30, 2023. The increase in provision expense for the quarter and year-to-date periods compared to the same periods in 2023 was mainly driven by loan growth which was up $119.4 million or 2.1%, and $446.4 million or 8.2%, respectively, and the increase in net charge-offs in 2024 over 2023. Net charge-offs for three and nine months ended September 30, 2024 were $912,000 and $1.6 million, respectively, compared to net charge-offs of $177,000 and net recoveries of $1.1 million for the same periods in 2023.
Nonperforming assets represented 0.78% of total assets at September 30, 2024, down slightly from 0.79% reported at June 30, 2024, and up compared to 0.41% at September 30, 2023. At September 30, 2024, nonperforming loans and leases totaled $62.6 million, compared to $62.5 million at June 30, 2024 and $31.4 million at September 30, 2023. The increase in nonperforming loans and leases at September 30, 2024 compared to September 30, 2023 was mainly due to the addition in the fourth quarter of 2023 of one relationship totaling approximately $33.3 million with two commercial real estate properties included in the office space and mixed use properties portion of the commercial real estate portfolio. The Company believes that the existing collateral securing the loans was sufficient to cover the exposure as of September 30, 2024.
Special Mention and Substandard loans and leases totaled $126.0 million at September 30, 2024, compared to $116.2 million reported at June 30, 2024, and $122.9 million reported at September 30, 2023.
CAPITAL POSITION
Capital ratios at September 30, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.21% at September 30, 2024, compared to 13.26% at June 30, 2024, and 13.46% at September 30, 2023. The ratio of Tier 1 capital to average assets was 9.19% at September 30, 2024, compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.
LIQUIDITY POSITION
The Company's liquidity position at September 30, 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 $1.4 billion, or 18.0% of total assets at September 30, 2024. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At September 30, 2024 the Company had an available borrowing capacity at the FHLB of $769.5 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At September 30, 2024 the available borrowing capacity with the Federal Reserve Bank was $142.0 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at September 30, 2024, the Company maintained $508.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.
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: 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; 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 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 |
9/30/2024 |
12/31/2023 |
||||
|
|
(Audited) |
||||
|
|
|
||||
Cash and noninterest bearing balances due from banks |
$ |
110,375 |
|
$ |
67,212 |
|
Interest bearing balances due from banks |
|
21,945 |
|
|
12,330 |
|
Cash and Cash Equivalents |
|
132,320 |
|
|
79,542 |
|
|
|
|
||||
Available-for-sale debt securities, at fair value (amortized cost of $1,410,405 at September 30, 2024 and $1,548,482 at December 31, 2023) |
|
1,309,279 |
|
|
1,416,650 |
|
Held-to-maturity debt securities, at amortized cost (fair value of $276,599 at September 30, 2024 and $267,455 at December 31, 2023) |
|
312,446 |
|
|
312,401 |
|
Equity securities, at fair value |
|
801 |
|
|
787 |
|
Total loans and leases, net of unearned income and deferred costs and fees |
|
5,881,261 |
|
|
5,605,935 |
|
Less: Allowance for credit losses |
|
55,384 |
|
|
51,584 |
|
Net Loans and Leases |
|
5,825,877 |
|
|
5,554,351 |
|
|
|
|
||||
Federal Home Loan Bank and other stock |
|
30,936 |
|
|
33,719 |
|
Bank premises and equipment, net |
|
77,603 |
|
|
79,687 |
|
Corporate owned life insurance |
|
75,966 |
|
|
67,884 |
|
Goodwill |
|
92,602 |
|
|
92,602 |
|
Other intangible assets, net |
|
2,238 |
|
|
2,327 |
|
Accrued interest and other assets |
|
146,359 |
|
|
179,799 |
|
Total Assets |
$ |
8,006,427 |
|
$ |
7,819,749 |
|
LIABILITIES |
|
|
||||
Deposits: |
|
|
||||
Interest bearing: |
|
|
||||
Checking, savings and money market |
|
3,655,041 |
|
|
3,484,878 |
|
Time |
|
1,042,007 |
|
|
998,013 |
|
Noninterest bearing |
|
1,880,848 |
|
|
1,916,956 |
|
Total Deposits |
|
6,577,896 |
|
|
6,399,847 |
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase |
|
67,506 |
|
|
50,996 |
|
Other borrowings |
|
539,327 |
|
|
602,100 |
|
Other liabilities |
|
100,350 |
|
|
96,872 |
|
Total Liabilities |
$ |
7,285,079 |
|
$ |
7,149,815 |
|
EQUITY |
|
|
||||
Tompkins Financial Corporation shareholders' equity: |
|
|
||||
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,426,922 at September 30, 2024; and 14,441,830 at December 31, 2023 |
|
1,443 |
|
|
1,444 |
|
Additional paid-in capital |
|
299,741 |
|
|
297,183 |
|
Retained earnings |
|
526,423 |
|
|
501,510 |
|
Accumulated other comprehensive loss |
|
(101,200 |
) |
|
(125,005 |
) |
Treasury stock, at cost – 129,317 shares at September 30, 2024, and 132,097 shares at December 31, 2023 |
|
(6,552 |
) |
|
(6,610 |
) |
Total Tompkins Financial Corporation Shareholders’ Equity |
|
719,855 |
|
|
668,522 |
|
Noncontrolling interests |
|
1,493 |
|
|
1,412 |
|
Total Equity |
$ |
721,348 |
|
$ |
669,934 |
|
Total Liabilities and Equity |
$ |
8,006,427 |
|
$ |
7,819,749 |
|
|
|
|
||||
TOMPKINS FINANCIAL CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(In thousands, except per share data) (Unaudited) |
Three Months Ended |
Nine Months Ended |
|||||||||||||
|
9/30/2024 |
06/30/2024 |
9/30/2023 |
9/30/2024 |
9/30/2023 |
||||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
||||||||||
Loans |
$ |
77,814 |
$ |
73,646 |
|
$ |
67,030 |
|
$ |
223,059 |
$ |
191,399 |
|
||
Due from banks |
|
168 |
|
184 |
|
|
125 |
|
|
506 |
|
447 |
|
||
Available-for-sale debt securities |
|
9,037 |
|
9,371 |
|
|
6,599 |
|
|
28,019 |
|
19,960 |
|
||
Held-to-maturity debt securities |
|
1,222 |
|
1,219 |
|
|
1,221 |
|
|
3,659 |
|
3,654 |
|
||
Federal Home Loan Bank and other stock |
|
888 |
|
820 |
|
|
490 |
|
|
2,309 |
|
1,113 |
|
||
Total Interest and Dividend Income |
|
89,129 |
$ |
85,240 |
|
$ |
75,465 |
|
$ |
257,552 |
$ |
216,573 |
|
||
INTEREST EXPENSE |
|
|
|
|
|
||||||||||
Time certificates of deposits of $250,000 or more |
|
4,158 |
|
4,048 |
|
|
3,158 |
|
|
12,216 |
|
7,472 |
|
||
Other deposits |
|
22,553 |
|
21,236 |
|
|
16,348 |
|
|
64,213 |
|
39,861 |
|
||
Federal funds purchased and securities sold under agreements to repurchase |
|
11 |
|
11 |
|
|
15 |
|
|
35 |
|
44 |
|
||
Other borrowings |
|
9,214 |
|
8,992 |
|
|
4,931 |
|
|
26,267 |
|
12,041 |
|
||
Total Interest Expense |
|
35,936 |
|
34,287 |
|
|
24,452 |
|
|
102,731 |
|
59,418 |
|
||
Net Interest Income |
|
53,193 |
|
50,953 |
|
|
51,013 |
|
|
154,821 |
|
157,155 |
|
||
Less: Provision for credit loss expense |
|
2,174 |
|
2,172 |
|
|
1,150 |
|
|
5,200 |
|
2,578 |
|
||
Net Interest Income After Provision for Credit Loss Expense |
|
51,019 |
|
48,781 |
|
|
49,863 |
|
|
149,621 |
|
154,577 |
|
||
NONINTEREST INCOME |
|
|
|
|
|
||||||||||
Insurance commissions and fees |
|
11,283 |
|
9,087 |
|
|
11,397 |
|
|
30,629 |
|
29,578 |
|
||
Wealth management fees |
|
4,925 |
|
4,849 |
|
|
4,342 |
|
|
14,711 |
|
13,529 |
|
||
Service charges on deposit accounts |
|
1,872 |
|
1,766 |
|
|
1,754 |
|
|
5,434 |
|
5,140 |
|
||
Card services income |
|
2,921 |
|
3,278 |
|
|
2,860 |
|
|
9,138 |
|
8,629 |
|
||
Other income |
|
2,299 |
|
2,802 |
|
|
990 |
|
|
7,321 |
|
4,534 |
|
||
Net gain (loss) on securities transactions |
|
85 |
|
(6 |
) |
|
(62,967 |
) |
|
65 |
|
(70,019 |
) |
||
Total Noninterest Income |
|
23,385 |
|
21,776 |
|
|
(41,624 |
) |
|
67,298 |
|
(8,609 |
) |
||
NONINTEREST EXPENSE |
|
|
|
|
|
||||||||||
Salaries and wages |
|
25,664 |
|
24,919 |
|
|
23,811 |
|
|
75,280 |
|
73,660 |
|
||
Other employee benefits |
|
6,276 |
|
6,545 |
|
|
7,319 |
|
|
19,232 |
|
20,707 |
|
||
Net occupancy expense of premises |
|
3,065 |
|
3,139 |
|
|
3,108 |
|
|
9,761 |
|
9,734 |
|
||
Furniture and fixture expense |
|
1,797 |
|
1,910 |
|
|
2,079 |
|
|
5,832 |
|
6,238 |
|
||
Amortization of intangible assets |
|
86 |
|
80 |
|
|
83 |
|
|
242 |
|
250 |
|
||
Other operating expense |
|
12,989 |
|
13,349 |
|
|
13,466 |
|
|
39,329 |
|
41,403 |
|
||
Total Noninterest Expenses |
|
49,877 |
|
49,942 |
|
|
49,866 |
|
|
149,676 |
|
151,992 |
|
||
Income/(Loss) Before Income Tax Expense/(Benefit) |
|
24,527 |
|
20,615 |
|
|
(41,627 |
) |
|
67,243 |
|
(6,024 |
) |
||
Income Tax Expense/(Benefit) |
|
5,858 |
|
4,902 |
|
|
(8,304 |
) |
|
15,958 |
|
(619 |
) |
||
Net Income/(Loss) Attributable to Noncontrolling Interests and Tompkins Financial Corporation |
|
18,669 |
|
15,713 |
|
|
(33,323 |
) |
|
51,285 |
|
(5,405 |
) |
||
Less: Net Income Attributable to Noncontrolling Interests |
|
31 |
|
31 |
|
|
31 |
|
|
93 |
|
93 |
|
||
Net Income/(Loss) Attributable to Tompkins Financial Corporation |
$ |
18,638 |
|
15,682 |
|
|
(33,354 |
) |
|
51,192 |
|
(5,498 |
) |
||
Basic Earnings (Loss) Per Share |
$ |
1.31 |
$ |
1.10 |
|
$ |
(2.35 |
) |
$ |
3.60 |
$ |
(0.39 |
) |
||
Diluted Earnings (Loss) Per Share |
$ |
1.30 |
$ |
1.10 |
|
$ |
(2.35 |
) |
$ |
3.59 |
$ |
(0.39 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||||
|
September 30, 2024 |
June 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 |
$ |
13,189 |
$ |
168 |
|
5.07 |
% |
$ |
11,707 |
$ |
184 |
|
6.33 |
% |
||
Securities (1) |
|
|
|
|
|
|
||||||||||
U.S. Government securities |
|
1,664,611 |
|
9,740 |
|
2.33 |
% |
|
1,717,975 |
|
10,067 |
|
2.36 |
% |
||
State and municipal (2) |
|
87,799 |
|
560 |
|
2.54 |
% |
|
89,518 |
|
566 |
|
2.55 |
% |
||
Other securities |
|
3,282 |
|
60 |
|
7.27 |
% |
|
3,260 |
|
59 |
|
7.32 |
% |
||
Total securities |
|
1,755,692 |
|
10,360 |
|
2.35 |
% |
|
1,810,753 |
|
10,692 |
|
2.38 |
% |
||
FHLBNY and FRB stock |
|
38,534 |
|
888 |
|
9.17 |
% |
|
37,681 |
|
820 |
|
8.76 |
% |
||
Total loans and leases, net of unearned income (2)(3) |
|
5,830,899 |
|
78,040 |
|
5.32 |
% |
|
5,687,548 |
|
73,839 |
|
5.22 |
% |
||
Total interest-earning assets |
|
7,638,314 |
|
89,456 |
|
4.66 |
% |
|
7,547,689 |
|
85,535 |
|
4.56 |
% |
||
Other assets |
|
276,610 |
|
|
|
262,372 |
|
|
||||||||
Total assets |
$ |
7,914,924 |
|
|
$ |
7,810,061 |
|
|
||||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||||
Interest bearing checking, savings, & money market |
$ |
3,509,116 |
$ |
16,635 |
|
1.89 |
% |
$ |
3,498,746 |
$ |
15,754 |
|
1.81 |
% |
||
Time deposits |
|
1,016,949 |
|
10,076 |
|
3.94 |
% |
|
987,348 |
|
9,530 |
|
3.88 |
% |
||
Total interest-bearing deposits |
|
4,526,065 |
|
26,711 |
|
2.35 |
% |
|
4,486,094 |
|
25,284 |
|
2.27 |
% |
||
Federal funds purchased & securities sold under agreements to repurchase |
|
42,449 |
|
11 |
|
0.10 |
% |
|
40,298 |
|
11 |
|
0.11 |
% |
||
Other borrowings |
|
709,474 |
|
9,214 |
|
5.17 |
% |
|
688,611 |
|
8,992 |
|
5.25 |
% |
||
Total interest-bearing liabilities |
|
5,277,988 |
|
35,936 |
|
2.71 |
% |
|
5,215,003 |
|
34,287 |
|
2.64 |
% |
||
Noninterest bearing deposits |
|
1,838,725 |
|
|
|
1,837,325 |
|
|
||||||||
Accrued expenses and other liabilities |
|
101,679 |
|
|
|
94,764 |
|
|
||||||||
Total liabilities |
|
7,218,392 |
|
|
|
7,147,092 |
|
|
||||||||
Tompkins Financial Corporation Shareholders’ equity |
|
695,057 |
|
|
|
661,523 |
|
|
||||||||
Noncontrolling interest |
|
1,475 |
|
|
|
1,446 |
|
|
||||||||
Total equity |
|
696,532 |
|
|
|
662,969 |
|
|
||||||||
|
|
|
|
|
|
|
||||||||||
Total liabilities and equity |
$ |
7,914,924 |
|
|
$ |
7,810,061 |
|
|
||||||||
Interest rate spread |
|
|
1.95 |
% |
|
|
1.91 |
% |
||||||||
Net interest income (TE)/margin on earning assets |
|
|
53,520 |
|
2.79 |
% |
|
|
51,248 |
|
2.73 |
% |
||||
|
|
|
|
|
|
|
||||||||||
Tax Equivalent Adjustment |
|
|
(327 |
) |
|
|
|
(295 |
) |
|
||||||
Net interest income |
|
$ |
53,193 |
|
|
|
$ |
50,953 |
|
|
||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||||
|
Quarter Ended |
Quarter Ended |
||||||||||||||
|
September 30, 2024 |
September 30, 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 |
$ |
13,189 |
$ |
168 |
|
5.07 |
% |
$ |
11,585 |
$ |
125 |
|
4.29 |
% |
||
Securities (1) |
|
|
|
|
|
|
||||||||||
U.S. Government securities |
|
1,664,611 |
|
9,740 |
|
2.33 |
% |
|
1,890,659 |
|
7,294 |
|
1.53 |
% |
||
State and municipal (2) |
|
87,799 |
|
560 |
|
2.54 |
% |
|
90,212 |
|
576 |
|
2.53 |
% |
||
Other securities |
|
3,282 |
|
60 |
|
7.27 |
% |
|
3,272 |
|
59 |
|
7.18 |
% |
||
Total securities |
|
1,755,692 |
|
10,360 |
|
2.35 |
% |
|
1,984,143 |
|
7,929 |
|
1.59 |
% |
||
FHLBNY and FRB stock |
|
38,534 |
|
888 |
|
9.17 |
% |
|
24,511 |
|
490 |
|
7.94 |
% |
||
Total loans and leases, net of unearned income (2)(3) |
|
5,830,899 |
|
78,040 |
|
5.32 |
% |
|
5,385,195 |
|
67,199 |
|
4.95 |
% |
||
Total interest-earning assets |
|
7,638,314 |
|
89,456 |
|
4.66 |
% |
|
7,405,434 |
|
75,743 |
|
4.06 |
% |
||
Other assets |
|
276,610 |
|
|
|
224,442 |
|
|
||||||||
Total assets |
$ |
7,914,924 |
|
|
$ |
7,629,876 |
|
|
||||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||||
Interest bearing checking, savings, & money market |
$ |
3,509,116 |
$ |
16,635 |
|
1.89 |
% |
$ |
3,615,395 |
$ |
12,674 |
|
1.39 |
% |
||
Time deposits |
|
1,016,949 |
|
10,076 |
|
3.94 |
% |
|
826,082 |
|
6,832 |
|
3.28 |
% |
||
Total interest-bearing deposits |
|
4,526,065 |
|
26,711 |
|
2.35 |
% |
|
4,441,477 |
|
19,506 |
|
1.74 |
% |
||
Federal funds purchased & securities sold under agreements to repurchase |
|
42,449 |
|
11 |
|
0.10 |
% |
|
57,624 |
|
15 |
|
0.10 |
% |
||
Other borrowings |
|
709,474 |
|
9,214 |
|
5.17 |
% |
|
403,829 |
|
4,931 |
|
4.84 |
% |
||
Total interest-bearing liabilities |
|
5,277,988 |
|
35,936 |
|
2.71 |
% |
|
4,902,930 |
|
24,452 |
|
1.98 |
% |
||
Noninterest bearing deposits |
|
1,838,725 |
|
|
|
1,990,320 |
|
|
||||||||
Accrued expenses and other liabilities |
|
101,679 |
|
|
|
101,646 |
|
|
||||||||
Total liabilities |
|
7,218,392 |
|
|
|
6,994,896 |
|
|
||||||||
Tompkins Financial Corporation Shareholders’ equity |
|
695,057 |
|
|
|
633,494 |
|
|
||||||||
Noncontrolling interest |
|
1,475 |
|
|
|
1,487 |
|
|
||||||||
Total equity |
|
696,532 |
|
|
|
634,980 |
|
|
||||||||
|
|
|
|
|
|
|
||||||||||
Total liabilities and equity |
$ |
7,914,924 |
|
|
$ |
7,629,876 |
|
|
||||||||
Interest rate spread |
|
|
1.95 |
% |
|
|
2.08 |
% |
||||||||
Net interest income (TE)/margin on earning assets |
|
|
53,520 |
|
2.79 |
% |
|
|
51,291 |
|
2.75 |
% |
||||
|
|
|
|
|
|
|
||||||||||
Tax Equivalent Adjustment |
|
|
(327 |
) |
|
|
|
(278 |
) |
|
||||||
Net interest income |
|
$ |
53,193 |
|
|
|
$ |
51,013 |
|
|
||||||
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) |
||||||||||||||||
|
Year to Date Period Ended |
Year to Date Period Ended |
||||||||||||||
|
September 30, 2024 |
September 30, 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 |
$ |
12,369 |
$ |
506 |
|
5.46 |
% |
$ |
12,630 |
$ |
447 |
|
4.73 |
% |
||
Securities (1) |
|
|
|
|
|
|
||||||||||
U.S. Government securities |
|
1,712,727 |
|
30,109 |
|
2.35 |
% |
|
1,965,039 |
|
22,022 |
|
1.50 |
% |
||
State and municipal (2) |
|
89,063 |
|
1,697 |
|
2.55 |
% |
|
91,858 |
|
1,764 |
|
2.57 |
% |
||
Other securities |
|
3,273 |
|
179 |
|
7.31 |
% |
|
3,281 |
|
169 |
|
6.87 |
% |
||
Total securities |
|
1,805,063 |
|
31,985 |
|
2.37 |
% |
|
2,060,178 |
|
23,955 |
|
1.55 |
% |
||
FHLBNY and FRB stock |
|
36,948 |
|
2,309 |
|
8.35 |
% |
|
21,519 |
|
1,113 |
|
6.93 |
% |
||
Total loans and leases, net of unearned income (2)(3) |
|
5,713,780 |
|
223,656 |
|
5.23 |
% |
|
5,314,221 |
|
191,946 |
|
4.83 |
% |
||
Total interest-earning assets |
|
7,568,160 |
|
258,456 |
|
4.56 |
% |
|
7,408,548 |
|
217,461 |
|
3.92 |
% |
||
Other assets |
|
274,143 |
|
|
|
224,594 |
|
|
||||||||
Total assets |
$ |
7,842,303 |
|
|
$ |
7,633,142 |
|
|
||||||||
LIABILITIES & EQUITY |
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
||||||||||
Interest-bearing deposits |
|
|
|
|
|
|
||||||||||
Interest bearing checking, savings, & money market |
$ |
3,517,993 |
$ |
47,424 |
|
1.80 |
% |
$ |
3,715,931 |
$ |
31,905 |
|
1.15 |
% |
||
Time deposits |
|
997,800 |
|
29,005 |
|
3.88 |
% |
|
749,198 |
|
15,428 |
|
2.75 |
% |
||
Total interest-bearing deposits |
|
4,515,793 |
|
76,429 |
|
2.26 |
% |
|
4,465,129 |
|
47,333 |
|
1.42 |
% |
||
Federal funds purchased & securities sold under agreements to repurchase |
|
43,837 |
|
35 |
|
0.11 |
% |
|
57,077 |
|
44 |
|
0.10 |
% |
||
Other borrowings |
|
673,809 |
|
26,267 |
|
5.21 |
% |
|
351,600 |
|
12,041 |
|
4.58 |
% |
||
Total interest-bearing liabilities |
|
5,233,439 |
|
102,731 |
|
2.62 |
% |
|
4,873,806 |
|
59,418 |
|
1.63 |
% |
||
Noninterest bearing deposits |
|
1,835,776 |
|
|
|
2,019,917 |
|
|
||||||||
Accrued expenses and other liabilities |
|
97,593 |
|
|
|
100,491 |
|
|
||||||||
Total liabilities |
|
7,166,808 |
|
|
|
6,994,214 |
|
|
||||||||
Tompkins Financial Corporation Shareholders’ equity |
|
674,048 |
|
|
|
637,472 |
|
|
||||||||
Noncontrolling interest |
|
1,447 |
|
|
|
1,456 |
|
|
||||||||
Total equity |
|
675,495 |
|
|
|
638,928 |
|
|
||||||||
|
|
|
|
|
|
|
||||||||||
Total liabilities and equity |
$ |
7,842,303 |
|
|
$ |
7,633,142 |
|
|
||||||||
Interest rate spread |
|
|
1.94 |
% |
|
|
2.29 |
% |
||||||||
Net interest income (TE)/margin on earning assets |
|
|
155,725 |
|
2.75 |
% |
|
|
158,043 |
|
2.85 |
% |
||||
|
|
|
|
|
|
|
||||||||||
Tax Equivalent Adjustment |
|
|
(904 |
) |
|
|
|
(888 |
) |
|
||||||
Net interest income |
|
$ |
154,821 |
|
|
|
$ |
157,155 |
|
|
||||||
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
|
Quarter-Ended |
Year-Ended |
||||||||||
Period End Balance Sheet |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Sep-23 |
Dec-23 |
||||||
Securities |
$ |
1,622,526 |
$ |
1,630,654 |
$ |
1,679,542 |
$ |
1,729,838 |
$ |
1,701,636 |
$ |
1,729,838 |
Total Loans |
|
5,881,261 |
|
5,761,864 |
|
5,640,524 |
|
5,605,935 |
|
5,434,860 |
|
5,605,935 |
Allowance for credit losses |
|
55,384 |
|
53,059 |
|
51,704 |
|
51,584 |
|
49,336 |
|
51,584 |
Total assets |
|
8,006,427 |
|
7,869,522 |
|
7,778,034 |
|
7,819,749 |
|
7,691,162 |
|
7,819,749 |
Total deposits |
|
6,577,896 |
|
6,285,896 |
|
6,449,616 |
|
6,399,847 |
|
6,623,436 |
|
6,399,847 |
Federal funds purchased and securities sold under agreements to repurchase |
|
67,506 |
|
35,989 |
|
43,681 |
|
50,996 |
|
56,120 |
|
50,996 |
Other borrowings |
|
539,327 |
|
773,627 |
|
522,600 |
|
602,100 |
|
296,800 |
|
602,100 |
Total common equity |
|
719,855 |
|
674,630 |
|
667,906 |
|
668,522 |
|
610,851 |
|
668,522 |
Total equity |
|
721,348 |
|
676,093 |
|
669,338 |
|
669,934 |
|
612,356 |
|
669,934 |
Average Balance Sheet |
|
|
|
|
|
|
||||||
Average earning assets |
$ |
7,638,314 |
$ |
7,547,689 |
$ |
7,517,705 |
$ |
7,407,976 |
$ |
7,405,434 |
$ |
7,408,404 |
Average assets |
|
7,914,924 |
|
7,810,061 |
|
7,801,125 |
|
7,666,982 |
|
7,629,876 |
|
7,641,672 |
Average interest-bearing liabilities |
|
5,277,988 |
|
5,215,003 |
|
5,206,836 |
|
5,020,544 |
|
4,902,930 |
|
4,910,792 |
Average equity |
|
696,532 |
|
662,969 |
|
666,752 |
|
622,280 |
|
634,980 |
|
634,732 |
Share data |
|
|
|
|
|
|
||||||
Weighted average shares outstanding (basic) |
|
14,215,607 |
|
14,214,574 |
|
14,211,910 |
|
14,194,503 |
|
14,185,763 |
|
14,254,661 |
Weighted average shares outstanding (diluted) |
|
14,283,255 |
|
14,239,626 |
|
14,238,357 |
|
14,246,024 |
|
14,224,748 |
|
14,301,221 |
Period-end shares outstanding |
|
14,394,255 |
|
14,395,204 |
|
14,405,019 |
|
14,405,920 |
|
14,350,177 |
|
14,405,920 |
Common equity book value per share |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
46.41 |
$ |
42.57 |
$ |
46.41 |
Tangible book value per share (Non-GAAP)** |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
39.88 |
$ |
36.01 |
$ |
39.88 |
**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 |
$ |
53,193 |
$ |
50,953 |
$ |
50,675 |
$ |
52,359 |
$ |
51,013 |
|
$ |
209,514 |
Provision for credit loss expense (5) |
|
2,174 |
|
2,172 |
|
854 |
|
1,761 |
|
1,150 |
|
|
4,339 |
Noninterest income |
|
23,385 |
|
21,776 |
|
22,137 |
|
18,850 |
|
(41,624 |
) |
|
10,241 |
Noninterest expense (5) |
|
49,877 |
|
49,942 |
|
49,857 |
|
51,300 |
|
49,866 |
|
|
203,292 |
Income tax expense/(benefit) |
|
5,858 |
|
4,902 |
|
5,198 |
|
3,114 |
|
(8,304 |
) |
|
2,495 |
Net income/(loss) attributable to Tompkins Financial Corporation |
|
18,638 |
|
15,682 |
|
16,872 |
|
15,003 |
|
(33,354 |
) |
|
9,505 |
Noncontrolling interests |
|
31 |
|
31 |
|
31 |
|
31 |
|
31 |
|
|
124 |
Basic earnings (loss) per share (4) |
|
1.31 |
|
1.10 |
|
1.19 |
|
1.06 |
|
(2.35 |
) |
|
0.66 |
Diluted earnings (loss) per share (4) |
|
1.30 |
|
1.10 |
|
1.18 |
|
1.05 |
|
(2.35 |
) |
|
0.66 |
Nonperforming Assets |
|
|
|
|
|
|
||||||
Nonaccrual loans and leases |
$ |
62,381 |
$ |
62,253 |
$ |
62,544 |
$ |
62,165 |
$ |
31,381 |
$ |
62,165 |
Loans and leases 90 days past due and accruing |
|
193 |
|
215 |
|
151 |
|
101 |
|
52 |
|
101 |
Total nonperforming loans and leases |
|
62,574 |
|
62,468 |
|
62,695 |
|
62,266 |
|
31,433 |
|
62,266 |
OREO |
|
81 |
|
80 |
|
0 |
|
131 |
|
0 |
|
131 |
Total nonperforming assets |
$ |
62,655 |
$ |
62,548 |
$ |
62,695 |
$ |
62,397 |
$ |
31,433 |
$ |
62,397 |
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
|
Quarter-Ended |
Year-Ended |
||||||||||
Delinquency - Total loan and lease portfolio |
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Sep-23 |
Dec-23 |
||||||
Loans and leases 30-89 days past due and accruing |
$ |
7,031 |
$ |
5,286 |
$ |
8,015 |
$ |
4,210 |
$ |
40,893 |
$ |
4,210 |
Loans and leases 90 days past due and accruing |
|
193 |
|
215 |
|
151 |
|
101 |
|
52 |
|
101 |
Total loans and leases past due and accruing |
|
7,224 |
|
5,501 |
|
8,166 |
|
4,311 |
|
40,945 |
|
4,311 |
Allowance for Credit Losses |
|||||||||||||||
Balance at beginning of period |
$ |
53,059 |
|
$ |
51,704 |
$ |
51,584 |
$ |
49,336 |
|
$ |
48,545 |
$ |
45,934 |
|
Impact of adopting ASC 326 |
|
0 |
|
|
0 |
|
0 |
|
0 |
|
|
0 |
|
64 |
|
Provision for credit losses |
|
3,237 |
|
|
1,864 |
|
348 |
|
2,658 |
|
|
968 |
$ |
4,865 |
|
Net loan and lease charge-offs (recoveries) |
|
912 |
|
|
509 |
|
228 |
|
410 |
|
|
177 |
$ |
(721 |
) |
Allowance for credit losses at end of period |
$ |
55,384 |
|
$ |
53,059 |
$ |
51,704 |
$ |
51,584 |
|
$ |
49,336 |
$ |
51,584 |
|
|
|
|
|
|
|
|
|||||||||
Allowance for Credit Losses - Off-Balance Sheet Exposure |
|||||||||||||||
Balance at beginning of period |
$ |
3,084 |
|
$ |
2,776 |
$ |
2,270 |
$ |
3,167 |
|
$ |
2,985 |
$ |
2,796 |
|
Provision (credit) for credit losses |
|
(1,063 |
) |
|
308 |
|
506 |
|
(897 |
) |
|
182 |
$ |
(526 |
) |
Allowance for credit losses at end of period |
$ |
2,021 |
|
$ |
3,084 |
$ |
2,776 |
$ |
2,270 |
|
$ |
3,167 |
$ |
2,270 |
|
Loan Classification - Total Portfolio |
|
|
|
|
|
|
||||||
Special Mention |
$ |
58,758 |
$ |
48,712 |
$ |
46,302 |
$ |
50,368 |
$ |
65,993 |
$ |
50,368 |
Substandard |
|
67,261 |
|
67,509 |
|
72,412 |
|
72,717 |
|
56,947 |
|
72,717 |
Ratio Analysis
Credit Quality |
|
|
|
|
|
|
||||||
Nonperforming loans and leases/total loans and leases |
1.06 |
% |
1.08 |
% |
1.11 |
% |
1.11 |
% |
0.58 |
% |
1.11 |
% |
Nonperforming assets/total assets |
0.78 |
% |
0.79 |
% |
0.81 |
% |
0.80 |
% |
0.41 |
% |
0.80 |
% |
Allowance for credit losses/total loans and leases |
0.94 |
% |
0.92 |
% |
0.92 |
% |
0.92 |
% |
0.91 |
% |
0.92 |
% |
Allowance/nonperforming loans and leases |
88.51 |
% |
84.94 |
% |
82.47 |
% |
82.84 |
% |
156.96 |
% |
82.84 |
% |
Net loan and lease losses (recoveries) annualized/total average loans and leases |
0.06 |
% |
0.04 |
% |
0.02 |
% |
0.03 |
% |
0.01 |
% |
(0.01 |
)% |
Capital Adequacy |
|
|
|
|
|
|
||||||
Tier 1 Capital (to average assets) |
9.19 |
% |
9.15 |
% |
9.08 |
% |
9.08 |
% |
9.01 |
% |
9.08 |
% |
Total Capital (to risk-weighted assets) |
13.21 |
% |
13.26 |
% |
13.43 |
% |
13.36 |
% |
13.46 |
% |
13.36 |
% |
Profitability (period-end) |
|
|
|
|
|
|
||||||
Return on average assets * |
0.94 |
% |
0.81 |
% |
0.87 |
% |
0.78 |
% |
(1.73 |
)% |
0.12 |
% |
Return on average equity * |
10.65 |
% |
9.51 |
% |
10.18 |
% |
9.56 |
% |
(20.84 |
)% |
1.50 |
% |
Net interest margin (TE) * |
2.79 |
% |
2.73 |
% |
2.73 |
% |
2.82 |
% |
2.75 |
% |
2.84 |
% |
Average yield on interest-earning assets* |
4.66 |
% |
4.56 |
% |
4.47 |
% |
4.34 |
% |
4.06 |
% |
4.03 |
% |
Average cost of deposits* |
1.67 |
% |
1.61 |
% |
1.54 |
% |
1.43 |
% |
1.20 |
% |
1.09 |
% |
Average cost of funds* |
2.01 |
% |
1.96 |
% |
1.86 |
% |
1.62 |
% |
1.41 |
% |
1.27 |
% |
* 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 |
||||||||||
|
Sep-24 |
Jun-24 |
Mar-24 |
Dec-23 |
Sep-23 |
Dec-23 |
||||||
Common equity book value per share (GAAP) |
$ |
50.01 |
$ |
46.86 |
$ |
46.37 |
$ |
46.41 |
$ |
42.57 |
$ |
46.41 |
Total common equity |
$ |
719,855 |
$ |
674,630 |
$ |
667,906 |
$ |
668,522 |
$ |
610,851 |
$ |
668,522 |
Less: Goodwill and intangibles |
|
93,760 |
|
93,847 |
|
93,926 |
|
94,003 |
|
94,086 |
|
94,003 |
Tangible common equity (Non-GAAP) |
|
626,095 |
|
580,783 |
|
573,980 |
|
574,519 |
|
516,765 |
|
574,519 |
Ending shares outstanding |
|
14,394,255 |
|
14,395,204 |
|
14,405,019 |
|
14,405,920 |
|
14,350,177 |
|
14,405,920 |
Tangible book value per share (Non-GAAP) |
$ |
43.50 |
$ |
40.35 |
$ |
39.85 |
$ |
39.88 |
$ |
36.01 |
$ |
39.88 |
(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.
(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.