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Tompkins Financial Corporation Reports Record Second Quarter Earnings

July 31, 2015 9:00 AM

ITHACA, N.Y.--(BUSINESS WIRE)-- Tompkins Financial Corporation (NYSEMKT: TMP)

Tompkins Financial Corporation reported record net income of $17.4 million for the second quarter of 2015, an increase of 33.1% from the $13.1 million reported for the same period in 2014. Diluted earnings per share were $1.15 for the quarter, up from $0.87 per share for the second quarter last year. Results for the current quarter were helped by a one-time curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan. If this gain were excluded from the current period results, diluted earnings per share would have been $0.91, which would still reflect the best second quarter in Company history. The impact of this non-recurring item on the Company’s financial statements is more fully detailed in the non-GAAP disclosure tables included with this press release.

For the year-to-date period ended June 30, 2015, net income was $30.1 million, an increase of 17.3% from the $25.6 million reported for the same period in 2014. Diluted earnings per share were $2.00 for the year-to-date period ended June 30, 2015, up 16.3% compared to the $1.72 per share reported for the same period last year. These results were also aided by the curtailment gain described above. If this gain were excluded from year to date results, net income for the period would have been $26.0 million for the first six months of 2015, and diluted earnings per share would have been $1.75. Refer to non-GAAP disclosures for additional details.

SELECTED HIGHLIGHTS FOR SECOND QUARTER:

President and CEO, Stephen S. Romaine said "It is very exciting to report on another record quarter for earnings performance. When compared to the same period last year, positive trends that contributed to these results included: growth in loans, deposits, insurance revenue, and card related revenue, as well as continued excellent asset quality.”

NET INTEREST INCOME

Net interest income of $41.3 million for the second quarter of 2015 increased 2.0% compared to the same period in 2014, and was in line with the first quarter of 2015. For the year-to-date period, net interest income of $82.6 million was up 2.5% from the prior year. The net interest margin for the second quarter of 2015 was 3.37%, compared to 3.55% for the same period in 2014. For the year to date, net interest margin was 3.41% in 2015, compared to 3.58% in 2014.

NONINTEREST INCOME

Noninterest income represented 31.5% of total revenue for the second quarter of 2015, compared to 30.4% of total revenue in the second quarter of 2014. Noninterest income was $19.0 million for the second quarter of 2015, up 7.0% compared to the second quarter of 2014, and up 7.5% compared to first quarter 2015. The increase over the same quarter last year included improvements in insurance revenue and card services income. Growth during the quarter also benefited from $723,000 of gains on the sale of available-for-sale securities and $924,000 of gains on the sale of other real estate owned (OREO). For the first six months of 2015, noninterest income was up $1.5 million, or 4.1% over the same period in 2014.

NONINTEREST EXPENSE

Noninterest expense was $32.9 million for the second quarter of 2015, down 15.4% compared to the second quarter of 2014. For the year-to-date period, noninterest expense was down 5.9% from the same period in 2014. The decrease in noninterest expense for both the quarter-to-date and year-to-date periods was mainly due to a $6.0 million gain on a pension plan curtailment recorded in the second quarter of 2015. The curtailment gain is related to a freeze of the Company’s defined benefit pension plan which has been replaced with a more flexible defined contribution pension plan.

ASSET QUALITY

Asset quality remains strong. Substandard and Special Mention loans declined by $28.3 million from the same period last year, and by $10.1 million from the previous quarter.

Provision for loan and lease losses was $922,000 for the second quarter of 2015, up $855,000 compared to the second quarter of 2014. The increase over the second quarter of 2014 reflects increased provision expense primarily due to loan growth.

The Company’s allowance for originated loan and lease losses totaled $29.4 million at June 30, 2015, which represented 0.98% of total originated loans, compared to 1.02% at June 30, 2014 and 0.99% at year-end 2014. The allowance for loan and lease losses covered 139.36% of nonperforming loans and leases as of June 30, 2015, compared to 103.08% at June 30, 2014 and 128.43% at year-end 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.92% is up from 8.79% at June 30, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) improved to 7.48%, up from 7.40% reported at December 31, 2014.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

NON-GAAP MEASURES

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See “Tompkins Financial Corporation - Summary Financial Data (Unaudited)” tables for Non-GAAP related calculations.

"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) (Unaudited) As of As of
ASSETS 06/30/2015 12/31/2014
Cash and noninterest bearing balances due from banks $ 58,237 $ 53,921
Interest bearing balances due from banks 1,902 2,149
Cash and Cash Equivalents 60,139 56,070
Trading securities, at fair value 8,153 8,992
Available-for-sale securities, at fair value (amortized cost of $1,381,440 at June 30,
2015 and $1,397,458 at December 31, 2014) 1,382,484 1,402,236
Held-to-maturity securities, at amortized cost (fair value of $146,076 at June 30, 2015
and $89,036 at December 31, 2014) 145,737 88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,013,968 2,839,974
Acquired loans and leases, covered (3) 15,771 19,319
Acquired loans and leases, non-covered (3) 492,192 533,995
Less: Allowance for loan and lease losses 30,091 28,997
Net Loans and Leases 3,491,840 3,364,291
FDIC indemnification asset 634 1,903
Federal Home Loan Bank stock 27,128 21,259
Bank premises and equipment, net 59,451 59,800
Corporate owned life insurance 74,894 73,725
Goodwill 92,243 92,243
Other intangible assets, net 13,569 14,649
Accrued interest and other assets 79,864 86,225
Total Assets $ 5,436,136 $ 5,269,561
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,314,510 2,247,708
Time 906,345 898,081
Noninterest bearing 983,234 1,023,365
Total Deposits 4,204,089 4,169,154
Federal funds purchased and securities sold under agreements to repurchase 131,063 147,037
Other borrowings, including certain amounts at fair value of $10,817 at June 30, 2015
and $10,961 at December 31, 2014 493,326 356,541
Trust preferred debentures 37,423 37,337
Other liabilities 64,841 69,909
Total Liabilities $ 4,930,742 $ 4,779,978
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,978,017 at June 30, 2015; and 14,931,354 at December 31, 2014 1,498 1,493
Additional paid-in capital 351,549 348,889
Retained earnings 181,955 165,160
Accumulated other comprehensive loss (27,621 ) (24,011 )
Treasury stock, at cost – 111,467 shares at June 30, 2015, and 111,436 shares
at December 31, 2014 (3,504 ) (3,400 )
Total Tompkins Financial Corporation Shareholders’ Equity 503,877 488,131
Noncontrolling interests 1,517 1,452
Total Equity $ 505,394 $ 489,583
Total Liabilities and Equity $ 5,436,136 $ 5,269,561
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
(In thousands, except per share data) (Unaudited) 06/30/2015 06/30/2014 06/30/2015 06/30/2014
INTEREST AND DIVIDEND INCOME
Loans $ 38,059 $ 37,348 $ 75,435 $ 74,302
Due from banks 1 0 2 1
Trading securities 90 107 184 219
Available-for-sale securities 7,374 7,984 15,188 15,920
Held-to-maturity securities 674 186 1,270 338
Federal Home Loan Bank stock and Federal Reserve Bank stock 225 194 572 404
Total Interest and Dividend Income 46,423 45,819 92,651 91,184
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 354 328 689 635
Other deposits 2,267 2,449 4,553 4,884
Federal funds purchased and securities sold under agreements to
repurchase 665 763 1,335 1,580
Trust preferred debentures 573 571 1,143 1,141
Other borrowings 1,234 1,192 2,373 2,401
Total Interest Expense 5,093 5,303 10,093 10,641
Net Interest Income 41,330 40,516 82,558 80,543
Less: Provision for loan and lease losses 922 67 1,131 810
Net Interest Income After Provision for Loan and Lease Losses 40,408 40,449 81,427 79,733
NONINTEREST INCOME
Insurance commissions and fees 7,407 7,046 14,777 14,303
Investment services income 3,838 3,902 7,844 7,912
Service charges on deposit accounts 2,244 2,388 4,402 4,504
Card services income 2,025 1,920 3,843 4,032
Mark-to-market loss on trading securities (74 ) (34 ) (137 ) (93 )
Mark-to-market gain on liabilities held at fair value 104 63 145 128
Other income 2,695 2,400 4,721 4,239
Gain on sale of available-for-sale securities 723 35 1,013 129
Total Noninterest Income 18,962 17,720 36,608 35,154
NONINTEREST EXPENSES
Salaries and wages 18,394 17,660 35,962 34,306
Pension and other employee benefits (519 ) 4,978 5,475 11,023
Net occupancy expense of premises 3,073 3,066 6,412 6,326
Furniture and fixture expense 1,483 1,459 2,933 2,796
FDIC insurance 748 735 1,489 1,546
Amortization of intangible assets 500 525 1,007 1,052
Other operating expense 9,239 10,505 19,332 20,089
Total Noninterest Expenses 32,918 38,928 72,610 77,138
Income Before Income Tax Expense 26,452 19,241 45,425 37,749
Income Tax Expense 9,030 6,148 15,290 12,054
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation 17,422 13,093 30,135 25,695
Less: Net income attributable to noncontrolling interests 32 32 65 65
Net Income Attributable to Tompkins Financial Corporation $ 17,390 $ 13,061 $ 30,070 $ 25,630
Basic Earnings Per Share $ 1.16 $ 0.88 $ 2.01 $ 1.73
Diluted Earnings Per Share $ 1.15 $ 0.87 $ 2.00 $ 1.72
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter Ended Year to Date Period Ended Year to Date Period Ended
June 30, 2015 June 30, 2015 June 30, 2014
Average Average Average
Balance Average Balance Average Balance Average
(Dollar amounts in thousands) (QTD) Interest Yield/Rate (YTD) Interest Yield/Rate (YTD) Interest Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 1,824 $ 1 0.22 % $ 1,607 $ 2 0.25 % $ 885 $ 1 0.23 %
Securities (4)
U.S. Government securities 1,450,039 7,513 2.08 % 1,442,846 15,366 2.15 % 1,301,015 14,877 2.31 %
Trading securities 8,453 90 4.27 % 8,654 184 4.29 % 10,584 219 4.17 %
State and municipal (5) 86,710 832 3.85 % 87,502 1,703 3.92 % 89,964 2,127 4.77 %
Other securities (5) 3,752 30 3.21 % 3,758 60 3.22 % 4,729 76 3.24 %
Total securities 1,548,954 8,465 2.19 % 1,542,760 17,313 2.26 % 1,406,292 17,299 2.48 %
FHLBNY and FRB stock 23,927 225 3.76 % 22,355 572 5.15 % 20,670 404 3.94 %
Total loans and leases, net of unearned income (5)(6) 3,463,881 38,680 4.48 % 3,431,282 76,635 4.50 % 3,206,950 75,161 4.73 %
Total interest-earning assets 5,038,586 47,371 3.77 % 4,998,004 94,522 3.81 % 4,634,797 92,865 4.04 %
Other assets 352,528 355,264 371,552
Total assets 5,391,114 5,353,268 5,006,349
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,326,361 924 0.16 % 2,337,605 1,914 0.17 % 2,272,478 2,211 0.20 %
Time deposits 917,986 1,697 0.74 % 912,016 3,328 0.74 % 895,073 3,308 0.75 %
Total interest-bearing deposits 3,244,347 2,621 0.32 % 3,249,621 5,242 0.33 % 3,167,551 5,519 0.35 %
Federal funds purchased & securities sold under
agreements to repurchase 131,324 665 2.03 % 136,811 1,335 1.97 % 153,939 1,580 2.07 %
Other borrowings 422,364 1,234 1.17 % 385,233 2,373 1.24 % 263,633 2,401 1.84 %
Trust preferred debentures 37,395 573 6.15 % 37,374 1,143 6.17 % 37,205 1,141 6.18 %
Total interest-bearing liabilities 3,835,430 5,093 0.53 % 3,809,039 10,093 0.53 % 3,622,328 10,641 0.59 %
Noninterest bearing deposits 983,199 978,233 856,161
Accrued expenses and other liabilities 66,818 64,615 53,539
Total liabilities 4,885,447 4,851,887 4,532,028
Tompkins Financial Corporation Shareholders’ equity 504,166 499,896 472,836
Noncontrolling interest 1,501 1,485 1,485
Total equity 505,667 501,381 474,321
Total liabilities and equity $ 5,391,114 $ 5,353,268 $ 5,006,349
Interest rate spread 3.24 % 3.28 % 3.45 %
Net interest income/margin on earning assets 42,278 3.37 % 84,429 3.41 % 82,224 3.58 %
Tax Equivalent Adjustment (948 ) (1,871 ) (1,681 )
Net interest income per consolidated financial statements $ 41,330 $ 82,558 $ 80,543
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data) Quarter-Ended Year-Ended
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Dec-14
Period End Balance Sheet
Securities $ 1,536,374 $ 1,555,597 $ 1,499,396 $ 1,431,837 $ 1,420,226 $ 1,499,396
Originated loans and leases, net of unearned income and deferred costs and fees (2) 3,013,968 2,898,533 2,839,974 2,674,971 2,610,289 2,839,974
Acquired loans and leases (3) 507,963 529,024 553,314 582,498 618,679 553,314
Allowance for loan and lease losses 30,091 29,485 28,997 27,786 27,517 28,997
Total assets 5,436,136 5,357,533 5,269,561 5,090,919 5,057,821 5,269,561
Total deposits 4,204,089 4,282,766 4,169,154 4,212,860 4,044,389 4,169,154
Federal funds purchased and securities sold under agreements to repurchase 131,063 135,769 147,037 128,368 144,796 147,037
Other borrowings 493,326 330,850 356,541 166,509 287,158 356,541
Trust preferred debentures 37,423 37,380 37,337 37,298 37,254 37,337
Total common equity 503,877 502,811 488,131 489,061 487,720 488,131
Total equity 505,394 504,296 489,583 490,611 489,237 489,583
Average Balance Sheet
Average earning assets $ 5,038,586 $ 4,956,972 $ 4,799,027 $ 4,695,860 $ 4,666,722 $ 4,691,582
Average assets 5,391,114 5,315,002 5,193,347 5,058,608 5,030,395 5,066,655
Average interest-bearing liabilities 3,835,430 3,782,355 3,668,311 3,587,673 3,620,130 3,625,184
Average equity 505,667 497,047 495,531 489,920 480,063 483,599
Share data
Weighted average shares outstanding (basic) 14,751,844 14,701,397 14,639,631 14,711,709 14,709,881 14,676,622
Weighted average shares outstanding (diluted) 14,878,107 14,837,935 14,765,855 14,795,343 14,821,191 14,789,624
Period-end shares outstanding 14,942,107 14,962,079 14,895,444 14,794,092 14,853,439 14,895,444
Common equity book value per share $ 33.72 $ 33.61 $ 32.77 $ 33.06 $ 32.84 $ 32.77
Tangible book value per share (Non-GAAP) $ 26.71 $ 26.56 $ 25.66 $ 25.87 $ 25.65 $ 25.66
Income Statement
Net interest income $ 41,330 $ 41,228 $ 41,692 $ 41,575 $ 40,516 $ 163,810
Provision (Credit) for loan/lease losses 922 209 1,555 (59 ) 67 2,306
Noninterest income 18,962 17,646 18,056 17,555 17,720 70,765
Noninterest expense 32,918 39,692 39,018 38,537 38,928 154,693
Income tax expense 9,030 6,260 6,453 6,897 6,148 25,404
Net income attributable to Tompkins Financial Corporation 17,390 12,680 12,689 13,722 13,061 52,041
Noncontrolling interests 32 33 33 33 32 131
Basic earnings per share (9) $ 1.16 $ 0.85 $ 0.86 $ 0.92 $ 0.88 $ 3.51
Diluted earnings per share (9) $ 1.15 $ 0.84 $ 0.85 $ 0.92 $ 0.87 $ 3.48
Nonperforming Assets
Originated nonaccrual loans and leases $ 14,566 $ 13,811 $ 14,299 $ 16,319 $ 16,918 $ 14,299
Acquired nonaccrual loans and leases 5,030 4,683 4,729 4,998 5,907 4,729
Originated loans and leases 90 days past due and accruing 58 236 106 395 543 106
Troubled debt restructurings not included above 1,939 1,589 3,444 3,800 3,327 3,444
Total nonperforming loans and leases 21,593 20,319 22,578 25,512 26,695 22,578
OREO (8) 2,570 5,816 5,683 6,533 6,795 5,683
Total nonperforming assets $ 24,163 $ 26,135 $ 28,261 $ 32,045 $ 33,490 $ 28,261
Quarter-Ended Year-Ended
Delinquency - Originated loan and lease portfolio Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Dec-14
Loans and leases 30-89 days past due and
accruing (2) $ 3,315 $ 2,438 $ 6,849 $ 3,811 $ 5,221 $ 6,849
Loans and leases 90 days past due and accruing (2) 58 236 106 395 543 106
Total originated loans and leases past due and accruing (2) 3,373 2,674 6,955 4,206 5,764 6,955
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7) $ 455 $ 547 $ 533 $ 0 $ 0 $ 533
Covered loans and leases 90 days or more past
due and accruing (3)(7) 674 682 914 1,149 904 914
Non-covered loans and leases 30-89 days past
due and accruing (3)(7) 917 2,546 1,186 736 1,620 1,186
Non-covered loans and leases 90 days past
due and accruing (3)(7) 3,031 2,811 2,614 3,171 3,048 2,614
Total acquired loans and leases past due and accruing 5,077 6,586 5,247 5,056 5,572 5,247
Total loans and leases past due and accruing $ 8,450 $ 9,260 $ 12,202 $ 9,262 $ 11,336 $ 12,202
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period $ 28,690 $ 28,156 $ 27,185 $ 26,752 $ 26,661 $ 26,700
Provision (Credit) for loan and lease losses 769 340 1,102 (264 ) (56 ) 1,293
Net loan and lease charge-offs (recoveries) 31 (194 ) 131 (697 ) (147 ) (163 )
Allowance for loan and lease losses (originated 29,428 28,690 28,156 27,185 26,752 28,156
loan portfolio) - balance at end of period $ $ $ $ $ $
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period $ 795 $ 841 $ 601 $ 765 $ 1,353 $ 1,270
Provision (Credit) for loan and lease losses 153 (131 ) 453 205 123 1,013
Net loan and lease charge-offs (recoveries) 285 (85 ) 213 369 711 1,442
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period 663 795 841 601 765 841
Total allowance for loan and lease losses $ 30,091 $ 29,485 $ 28,997 $ 27,786 $ 27,517 $ 28,997
Loan Classification - Originated Portfolio
Special Mention $ 25,706 $ 34,965 $ 36,331 $ 27,854 $ 35,484 $ 36,331
Substandard 21,600 19,150 19,970 25,889 21,253 19,970
Loan Classification - Acquired Portfolio
Special Mention 1,589 5,053 5,758 7,605 12,124 5,758
Substandard 21,932 21,752 21,567 24,034 30,273 21,567
Loan Classifications - Total Portfolio
Special Mention 27,295 40,018 42,089 35,459 47,608 42,089
Substandard 43,532 40,902 41,537 49,923 51,526 41,537
RATIO ANALYSIS Quarter-Ended Year-Ended
Credit Quality Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Dec-14
Nonperforming loans and leases/total loans and leases (7) 0.61 % 0.59 % 0.67 % 0.78 % 0.83 % 0.67 %
Nonperforming assets/total assets 0.44 % 0.49 % 0.54 % 0.63 % 0.66 % 0.54 %
Allowance for originated loan and lease losses/total originated loans and leases 0.98 % 0.99 % 0.99 % 1.02 % 1.02 % 0.99 %
Allowance/nonperforming loans and leases 139.36 % 145.11 % 128.43 % 108.92 % 103.08 % 128.43 %
Net loan and lease losses (recoveries) annualized/total average loans and leases 0.04 % (0.03 %) 0.04 % (0.04 %) 0.07 % 0.04 %
Capital Adequacy (period-end)
Tier 1 capital / average assets * 8.92 % 8.85 % 8.75 % 8.85 % 8.79 % 8.75 %
Total capital / risk-weighted assets * 13.46 % 13.37 % 13.60 % 13.92 % 13.92 % 13.60 %
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
Profitability
Return on average assets * 1.29 % 0.97 % 0.97 % 1.08 % 1.04 % 1.03 %
Return on average equity * 13.79 % 10.35 % 10.16 % 11.11 % 10.91 % 10.76 %
Net interest margin (TE) * 3.37 % 3.45 % 3.53 % 3.58 % 3.55 % 3.57 %
* Quarterly ratios have been annualized
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Net income available to common shareholders $ 17,390 $ 12,680 $ 12,689 $ 13,722 $ 13,061 $ 52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards 234 182 150 119 118 503
Adjusted net income available to common shareholders 17,156 12,498 12,539 13,603 12,943 51,538
Gain on pension plan curtailment (net of tax) (3,602 ) 0 0 0 0 0
Net operating income (Non-GAAP) 13,554 12,498 12,539 13,603 12,943 51,538
Weighted average shares outstanding (diluted) 14,878,107 14,837,935 14,765,855 14,795,343 14,821,191 14,789,624
Adjusted diluted earnings per share (Non-GAAP) (9) $ 0.91 $ 0.84 $ 0.85 $ 0.92 $ 0.87 $ 3.48
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity $ 503,877 $ 502,811 $ 488,131 $ 489,061 $ 487,720 $ 488,131
Less: Goodwill and intangibles (10) 104,845 105,344 105,852 106,377 106,690 105,852
Tangible common equity 399,032 397,467 382,279 382,684 381,030 382,279
Total assets 5,436,136 5,357,533 5,269,561 5,090,919 5,057,821 5,269,561
Less: Goodwill and intangibles (10) 104,845 105,344 105,852 106,377 106,690 105,852
Tangible assets 5,331,291 5,252,189 5,163,709 4,984,542 4,951,131 5,163,709
Tangible common equity / tangible assets (Non-GAAP) 7.48 % 7.57 % 7.40 % 7.68 % 7.70 % 7.40 %
Non-GAAP Disclosure - Return on Average Quarter-Ended Year-Ended
Tangible Common Equity Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Dec-14
Net income available to common shareholders $ 17,390 $ 12,680 $ 12,689 $ 13,722 $ 13,061 $ 52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards 234 182 150 119 118 503
Adjusted net income available to common shareholders 17,156 12,498 12,539 13,603 12,943 51,538
Gain on pension plan curtailment (net of tax) (3,602 ) 0 0 0 0 0
Net operating income (Non-GAAP) 13,554 12,498 12,539 13,603 12,943 51,538
Amortization of intangibles (net of tax) 300 304 315 311 315 1,257
Adjusted net operating income (Non-GAAP) 13,854 12,802 12,854 13,914 13,258 52,795
Average common equity 504,166 495,579 493,986 488,386 478,561 482,087
Less: Average goodwill and intangibles (10) 105,130 105,644 106,151 106,471 106,988 106,748
Average tangible common equity capital 399,036 389,935 387,835 381,915 371,573 375,339
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP) 13.93 % 13.32 % 13.15 % 14.46 % 14.31 % 14.07 %
Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity $ 503,877 $ 502,811 $ 488,131 $ 489,061 $ 487,720 $ 488,131
Less: Goodwill and intangibles (10) 104,845 105,344 105,852 106,377 106,690 105,852
Tangible common equity 399,032 397,467 382,279 382,684 381,030 382,279
Ending shares outstanding 14,942,107 14,962,079 14,895,444 14,794,092 14,853,439 14,895,444
Tangible book value per share (Non-GAAP) $ 26.71 $ 26.56 $ 25.66 $ 25.87 $ 25.65 $ 25.66
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
Jun-15 Jun-14
Net income available to common shareholders $ 30,070 $ 25,630
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards 420 234
Adjusted net income available to common shareholders 29,650 25,396
Gain on pension plan curtailment (3,602 ) 0
Net operating income (Non-GAAP) 26,048 25,396
Weighted average shares outstanding (diluted) 14,858,127 14,798,462
Adjusted diluted earnings per share (Non-GAAP) $ 1.75 $ 1.72

(1) Federal Reserve peer ratio as of March 31, 2015, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans".
(3)"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2014.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.

(10) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.

Tompkins Financial Corporation

Stephen S. Romaine, 888-503-5753

President & CEO

or

Francis M. Fetsko, 888-503-5753

Executive VP, CFO & COO

Source: Tompkins Financial Corporation

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