Archive: Business & Technology

Tompkins Financial Corporation (NYSEMKT:TMP) Tompkins Financial Corporation reported net income of $14.2 million for the first quarter of 2016, an increase of 11.8% from the $12.7 million reported for the same period in 2015.  Diluted earnings per share were $0.94 for the first quarter of 2016, an 11.9% increase from $0.84 reported for the first quarter of 2015.

President and CEO, Stephen S. Romaine said "We are excited to start off the new year with the best first quarter earnings results in our history.  Solid loan growth, coupled with a stabilizing net interest margin, have been key drivers of growth over the prior year.  At the same time, we have seen continued improvement in credit quality trends, with nonperforming assets improved from already low levels."

SELECTED HIGHLIGHTS FOR FIRST QUARTER:

Net interest income of $44.0 million was up 6.8% from the same period last year.
Net interest margin has remained relatively stable over the past four quarters.
Total loans of $3.8 billion were up 11.5% over the same period in 2015.
Tangible book value per share was up 8.6% compared to the same period last year (refer to Non-GAAP measures).
Credit quality continues to improve with nonperforming assets down 13.5% compared to the first quarter of 2015.

NET INTEREST INCOME

Net interest income of $44.0 million for the first quarter of 2016 increased 6.8% compared to the same period in 2015, and was up 1.4% compared to the fourth quarter of 2015. Growth in net interest income was largely driven by growth in average loans of $392.9 million (11.6%) since the first quarter of 2015; and $103.7 million (2.8%) since the fourth quarter of 2015.  The net interest margin was 3.36% for the first quarter of 2016, down from 3.45% for the same period last year, but has remained relatively stable over the past four quarters.

NONINTEREST INCOME

Noninterest income represented 28.4% of total revenues in the first quarter of 2016, compared to 30.0% in 2015.  Noninterest income of $17.5 million was consistent with the same period prior year, and was down 2.3% compared to the most recent prior quarter.

NONINTEREST EXPENSE

Noninterest expense was $39.5 million for the first quarter of 2016, which was consistent with the same period last year and the fourth quarter of 2015.  Salaries and wages were up 8.1% compared to same quarter last year, which was partially offset by lower pension and employee benefits costs.

ASSET QUALITY

Asset quality trends continued to improve in the first quarter of 2016.  Nonperforming assets were down 13.5% compared to the first quarter in 2015, and down 7.8% compared to the prior quarter end.  Nonperforming assets represented 0.39% of total assets at March 31, 2016, down from 0.43% at December 31, 2015. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.90%.

Provision for loan and lease losses was $855,000 for the first quarter of 2016, up from $209,000 one year ago.  Net charge-offs for the first quarter of 2016 were $329,000 compared to net recoveries of $279,000 reported in the first quarter 2015.

The Company's allowance for originated loan and lease losses totaled $32.0 million at March 31, 2016, and represented 0.95% of total originated loans at March 31, 2016.  The ratio is unchanged from the most recent prior quarter and is down from 0.99% one year ago.  The total allowance represented 156.88% of total nonperforming loans and leases at March 31, 2016, up from 146.7% at December 31, 2015, and 145.11% at March 31, 2015.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums.  Tier 1 capital to average assets of 8.79%, compared to 8.82% reported for December 31, 2015, and 8.85% at March 31, 2015.  Total Capital to risk-weighted assets improved from 13.03% at December 31, 2015 to 13.18% at March 31, 2016. 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.

v12i17