Tompkins Financial (TMP) 8-K Results of Operations and Financial Condition

Tompkins Financial Corporation 8-K

EXHIBIT 99.1

 

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, CFO & COO

Tompkins Financial Corporation 888.503.5753

For Immediate Release 

Friday, October 18, 2013 

Tompkins Financial Corporation Reports Record Quarterly Earnings

ITHACA, NY – Tompkins Financial Corporation (TMP–NYSE MKT LLC)

Tompkins Financial Corporation reported diluted earnings per share of $0.95 for the third quarter of 2013, representing the highest quarterly earnings in Company history. For the year-to-date, diluted earnings per share were $2.50 for the current period, up from $1.63 per share reported for the same nine month period in 2012.

Both current and prior period results were impacted by certain non-recurring items including, but not limited to, merger related expenses associated with the acquisition of VIST Financial Corporation completed on August 1, 2012. After adjusting for non-recurring income and expenses, quarter to date diluted earnings per share would have been $0.90 for the third quarter of 2013, up from $0.87 for the same period last year. On a year-to-date basis, adjusting for non-recurring items, diluted earnings per share would have been $2.45 for the nine months ended September 30, 2013, compared to $2.36 for the same period last year. Additional information on non-recurring adjustments to earnings per share is included in the non-GAAP disclosure tables included in this press release.

President and CEO, Stephen S. Romaine said“We are pleased to report record earnings for the quarter. It is particularly rewarding to note that improving trends in several core business activities were significant contributors to the strong performance during the quarter. Loan growth and core deposit growth contributed to improved net interest margin during the quarter. Banking related fees also improved during the quarter, while revenue from insurance and wealth management activities were both up from the same period in 2012, and remained stable when compared to the most recent prior quarter”.

SELECTED HIGHLIGHTS FOR THE QUARTER INCLUDED:

 ● Loans were up 2.1% for the quarter and up 6.5% over the last 12 months

 ● Noninterest bearing deposits were up 5.9% during the quarter and up 6.6% over the last 12 months

 ● Noninterest income of $18.5 million was up 12.0% from the second quarter of 2013, and up 25.4% from the same quarter last year. Other income in the current period included a non-recurring pre-tax gain of $1.4 million related to a Trust Preferred debenture acquired as part of the VIST acquisition, which was redeemed during the quarter.

NET INTEREST INCOME

Net interest income of $40.5 million for the third quarter of 2013 represents an increase of 10.2% over the same period last year. The addition of VIST Bank and steady loan growth contributed to the year-over-year increase. Net interest income for the quarter was up $647,000, or 1.6%, from the second quarter of 2013, primarily due to growth in average loans and noninterest-bearing deposits. The net interest margin for the third quarter of 2013 was 3.63% compared to 3.58% for the second quarter in 2013 and 3.66% for the third quarter of 2012.

For the year to date period, net interest income of $118.5 million reflects an increase of 28.4% over the first nine months of 2012.

NONINTEREST INCOME

Noninterest income was $18.5 million for the third quarter of 2013, up 25.4% over the same period in 2012, and up 12.0% from the second quarter of 2013. As previously mentioned, the current quarter was impacted by the gain on redemption of the Trust Preferred debenture, while comparisons to the same period last year are impacted by the VIST acquisition in August 2012. While the current period benefited from the non-recurring gain, the underlying trends for noninterest income remain favorable. Excluding the non-recurring gain, noninterest income was up 3.5% from the most recent prior quarter, and up 15.9% from the same quarter last year. For the year to date period, noninterest income of $52.5 million represented 30.7% of total revenue, compared to 29.8% for the same period in 2012.

NONINTEREST EXPENSE

Noninterest expense was $37.6 million in the third quarter of 2013, down 18.7% from the same period in 2012, and in line with the second quarter of 2013. The decline from the third quarter of 2012 was largely driven by $13.8 million in pre-tax merger related expenses related to the VIST acquisition.

ASSET QUALITY

Some positive asset quality trends continued during the quarter with loans classified as Substandard and Special Mention declining by $23.1 million from the most recent previous quarter, and annualized net charge-offs during the quarter representing only a modest 0.14% of total average loans.

The percentage of nonperforming assets to total assets of 1.00% reflects some deterioration from 0.88% for the same period last year and from 0.89% at June 30, 2013. The $5.3 million increase in nonperforming assets included $2.3 million in acquired loans moving to Other Real Estate Owned, the remainder of the increase was attributable to loans that were moved into nonperforming status during the quarter. The nonperforming asset ratio continues to compare favorably to the most recent peer averages of 1.88% published as of June 30, 2013, by the Federal Reserve¹.

Provision for loan and lease losses was $2.0 million for the third quarter of 2013, up from $1.0 million in the same quarter last year, and down from the $2.5 million recorded in the second quarter of 2013. Net loan and lease charge-offs totaled $1.1 million in the third quarter of 2013, compared to $1.3 million in the third quarter last year, and $1.7 million in the second quarter of 2013.

The Company’s allowance for originated loan and lease losses totaled $25.7 million at September 30, 2013, which represented 1.06% of total originated loans, compared to 1.16% at December 31, 2012, reflecting improved overall quality of the originated portfolio.

The allowance for loan and lease losses covered 61.20% of nonperforming loans and leases as of September 30, 2013, which compares to 62.34% as of December 31, 2012.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets improved for the third consecutive quarter, to 8.37% at September 30, 2013. Total risk based capital of 13.32% was relatively unchanged from the second quarter of 2013. Tangible book value per share was $22.82 at September 30, 2013, up from $22.08 at June 30, 2013. The improvement in capital ratios was primarily driven by growth in retained earnings. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

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, The Bank of Castile, Mahopac National Bank, VIST Bank, Tompkins Insurance Agencies, Inc., and Tompkins Financial Advisors Management Inc. 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				09/30/2013		12/31/2012
Cash and noninterest bearing balances due from banks			$	87,595	$	117,448
Interest bearing balances due from banks				985		1,482
	Cash and Cash Equivalents			88,580		118,930
Trading securities, at fair value				11,530		16,450
Available-for-sale securities, at fair value (amortized cost of $1,359,757 at September 30,
	2013 and $1,349,416 at December 31, 2012)			1,358,930		1,393,340
Held-to-maturity securities, fair value of $20,403 at September 30, 2013, and $25,163
	at December 31, 2012			19,773		24,062
Originated loans and leases, net of unearned income and deferred costs and fees				2,420,695		2,133,106
Acquired loans and leases, covered				27,363		37,600
Acquired loans and leases, non-covered				671,254		783,904
Less:  Allowance for loan and lease losses				26,408		24,643
	Net Loans and Leases			3,092,904		2,929,967
FDIC Indemnification Asset				4,239		4,385
Federal Home Loan Bank stock and Federal Reserve Bank stock				21,955		19,388
Bank premises and equipment, net				55,607		54,581
Corporate owned life insurance				68,087		65,102
Goodwill				92,140		92,305
Other intangible assets, net				16,841		18,643
Accrued interest and other assets				101,842		100,044
	Total Assets		$	4,932,428	$	4,837,197
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,219,136		2,144,367
	Time			906,173		973,883
	Noninterest bearing			847,447		831,919
	Total Deposits			3,972,756		3,950,169
Federal funds purchased and securities sold under agreements to repurchase				162,117		213,973
Other borrowings, including certain amounts at fair value of $11,304 at September 30, 2013
	and $11,847 at December 31, 2012			242,177		111,848
Trust preferred debentures				37,127		43,668
Other liabilities				73,975		76,179
	Total Liabilities		$	4,488,152	$	4,395,837
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		14,728,581 at September 30, 2013; and 14,426,711 at December 31, 2012		1,473		1,443
	Additional paid-in capital			343,276		334,649
	Retained earnings			128,700		108,709
	Accumulated other comprehensive loss			(27,751)		(2,106)
	Treasury stock, at cost – 103,282 shares at September 30, 2013, and 100,054 shares
		at December 31, 2012		(2,972)		(2,787)
	Total Tompkins Financial Corporation Shareholders’ Equity			442,726		439,908
Noncontrolling interests				1,550		1,452
	Total Equity		$	444,276	$	441,360
	Total Liabilities and Equity		$	4,932,428	$	4,837,197
See notes to unaudited condensed consolidated financial statements

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended				Nine Months Ended
(In thousands, except per share data) (Unaudited)		09/30/2013		09/30/2012		09/30/2013		09/30/2012
INTEREST AND DIVIDEND INCOME
Loans	$	38,048	$	34,003	$	112,027	$	84,709
Due from banks		1		6		9		14
Federal funds sold		0		0		0		2
Trading securities		147		182		472		569
Available-for-sale securities		7,830		8,317		23,222		23,016
Held-to-maturity securities		160		208		528		658
Federal Home Loan Bank stock and Federal Reserve Bank stock		193		203		538		620
Total Interest and Dividend Income		46,379		42,919		136,796		109,588
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		1,208		1,043		3,651		2,497
Other deposits		1,894		2,105		6,093		5,930
Federal funds purchased and securities sold under agreements to
repurchase		901		1,174		2,877		3,340
Trust preferred debentures		660		489		2,037		1,296
Other borrowings		1,243		1,365		3,634		4,231
Total Interest Expense		5,906		6,176		18,292		17,294
Net Interest Income		40,473		36,743		118,504		92,294
Less:  Provision for loan and lease losses		2,049		1,042		5,576		3,178
Net Interest Income After Provision for Loan and Lease Losses		38,424		35,701		112,928		89,116
NONINTEREST INCOME
Insurance commissions and fees		7,160		5,786		21,588		13,184
Investment services income		3,694		3,614		11,180		10,504
Service charges on deposit accounts		2,254		1,988		6,186		5,366
Card services income		1,735		1,504		5,163		4,353
Mark-to-market loss on trading securities		(87)		(41)		(472)		(198)
Mark-to-market gain (loss) on liabilities held at fair value		119		(27)		543		138
Net other-than-temporary impairment losses		0		(55)		0		(120)
Other income		3,372		2,116		7,548		5,151
Gain on securities transactions		281		(112)		723		822
Total Noninterest Income		18,528		14,773		52,459		39,200
NONINTEREST EXPENSES
Salaries and wages		16,755		13,892		48,618		36,273
Pension and other employee benefits		5,606		4,826		17,014		13,248
Net occupancy expense of premises		2,850		2,472		8,865		6,070
Furniture and fixture expense		1,448		1,364		4,367		3,580
FDIC insurance		808		759		2,401		1,841
Amortization of intangible assets		544		426		1,648		684
Merger related expenses		0		13,842		228		14,814
Other operating expense		9,543		8,613		29,710		22,910
Total Noninterest Expenses		37,554		46,194		112,851		99,420
Income Before Income Tax Expense		19,398		4,280		52,536		28,896
Income Tax Expense		5,316		761		15,873		8,674
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		14,082		3,519		36,663		20,222
Less:  Net income attributable to noncontrolling interests		33		32		98		98
Net Income Attributable to Tompkins Financial Corporation	$	14,049	$	3,487	$	36,565	$	20,124
Basic Earnings Per Share	$	0.96	$	0.26	$	2.51	$	1.63
Diluted Earnings Per Share	$	0.95	$	0.25	$	2.50	$	1.63
See notes to unaudited condensed consolidated financial statements

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				September 30, 2013					September 30, 2013					September 30, 2012
				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		$	1,281	$	1	0.31%	$	2,261	$	9	0.53%	$	19,272	$	14	0.10%
	Money market funds			-		-	0.00%		-		-	0.00%		24		-	0.00%
	Securities (4)
		U.S. Government securities		1,319,413		7,208	2.17%		1,334,735		21,269	2.13%		1,170,885		21,089	2.41%
		Trading securities		13,978		147	4.17%		15,141		472	4.17%		18,526		569	4.10%
		State and municipal (5)		93,464		1,194	5.07%		97,253		3,750	5.16%		91,452		3,594	5.25%
		Other securities (5)		7,409		60	3.21%		7,996		210	3.51%		11,773		403	4.57%
		Total securities		1,434,264		8,609	2.38%		1,455,125		25,701	2.36%		1,292,636		25,655	2.65%
	Federal Funds Sold			-		-	0.00%		-		-	0.00%		2,453		2	0.11%
	FHLBNY and FRB stock			24,234		193	3.16%		22,051		538	3.26%		18,107		620	4.57%
	Total loans and leases, net of unearned income (5)(6)			3,073,824		38,535	4.97%		3,025,846		113,440	5.01%		2,194,852		85,281	5.19%
	Total interest-earning assets			4,533,603		47,338	4.14%		4,505,283		139,688	4.15%		3,527,344		111,572	4.23%
Other assets				364,075					415,809					293,527
	Total assets			4,897,678					4,921,092					3,820,871
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,164,364		1,134	0.21%		2,224,540		3,816	0.23%		1,610,667		3,250	0.27%
		Time deposits		925,863		1,968	0.84%		955,284		5,928	0.83%		786,856		5,177	0.88%
		Total interest-bearing deposits		3,090,227		3,102	0.40%		3,179,824		9,744	0.41%		2,397,523		8,427	0.47%
Federal funds purchased & securities sold under
		agreements to repurchase		168,446		901	2.12%		180,939		2,877	2.13%		195,553		3,340	2.28%
Other borrowings				271,904		1,243	1.81%		211,828		3,634	2.29%		139,148		4,231	4.06%
Trust preferred debentures				42,131		660	6.21%		43,160		2,037	6.31%		29,201		1,296	5.93%
	Total interest-bearing liabilities			3,572,708		5,906	0.66%		3,615,751		18,292	0.68%		2,761,425		17,294	0.84%
Noninterest bearing deposits				814,865					790,557					645,801
Accrued expenses and other liabilities				75,623					73,201					59,152
	Total liabilities			4,463,196					4,479,509					3,466,378
Tompkins Financial Corporation Shareholders’ equity				432,948					440,082					352,991
Noncontrolling interest				1,534					1,501					1,502
	Total equity			434,482					441,583					354,493
	Total liabilities and equity		$	4,897,678				$	4,921,092				$	3,820,871
Interest rate spread							3.48%					3.47%					3.39%
	Net interest income/margin on earning assets					41,432	3.63%				121,396	3.60%				94,278	3.57%
Tax Equivalent Adjustment						(959)					(2,892)					(1,984)
	Net interest income per consolidated financial statements				$	40,473				$	118,504				$	92,294

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Sep-13		Jun-13		Mar-13		Dec-12		Sep-12		Dec-12
Period End Balance Sheet
Securities	$	1,390,233	$	1,469,315	$	1,566,510	$	1,433,852	$	1,516,913	$	1,433,852
Originated loans and leases, net of unearned income and deferred costs and fees (2)		2,420,695		2,309,232		2,208,346		2,133,106		2,060,539		2,133,106
Acquired loans and leases (3)		698,617		745,951		785,449		821,504		869,211		821,504
Allowance for  loan and lease losses		26,408		25,458		24,661		24,643		26,632		24,643
Total assets		4,932,428		4,931,883		4,987,280		4,837,197		4,924,786		4,837,197
Total deposits		3,972,756		3,912,910		4,072,352		3,950,169		4,037,644		3,950,169
Federal funds purchased and securities sold under agreements to repurchase		162,117		171,498		194,091		213,973		206,996		213,973
Other borrowings		242,177		299,098		156,649		111,848		125,461		111,848
Trust preferred debentures		37,127		43,703		43,687		43,668		43,651		43,668
Shareholders' equity		444,276		431,894		446,812		441,360		440,950		441,360
Average Balance Sheet
Average earning assets	$	4,533,603	$	4,571,428	$	4,409,455	$	4,431,698	$	4,087,264	$	3,754,667
Average assets		4,897,678		4,965,895		4,899,727		4,901,374		4,450,013		4,092,473
Average interest-bearing liabilities		3,572,708		3,663,230		3,611,748		3,563,731		3,248,839		2,963,097
Average equity		434,482		447,088		443,277		443,592		410,300		376,890
Share data
Weighted average shares outstanding (basic)		14,515,053		14,427,838		14,374,265		14,332,672		13,580,771		12,797,173
Weighted average shares outstanding (diluted)		14,622,512		14,500,429		14,436,757		14,374,368		13,630,464		12,836,043
Period-end shares outstanding		14,692,671		14,599,558		14,447,017		14,390,801		14,358,230		14,390,801
Book value per share		30.24		29.58		30.93		30.67		30.71		30.67
Tangible book value per share (Non-GAAP)		22.82		22.08		23.29		22.96		22.71		22.96
Income Statement
Net interest income	$	40,473	$	39,826	$	38,206	$	41,849	$	36,743	$	134,143
Provision for loan/lease losses		2,049		2,489		1,038		5,659		1,042		8,837
Noninterest income		18,528		16,541		17,390		15,608		14,773		54,808
Noninterest expense		37,554		37,777		37,520		38,188		46,194		137,608
Income tax expense		5,316		5,061		5,495		2,416		761		11,090
Net income attributable to Tompkins Financial Corporation		14,049		11,007		11,510		11,161		3,487		31,285
Noncontrolling interests		33		33		33		33		32		131
Basic earnings per share (9)	$	0.96	$	0.76	$	0.80	$	0.78	$	0.26	$	2.44
Diluted earnings per share (9)	$	0.95	$	0.75	$	0.79	$	0.77	$	0.25	$	2.43
Nonperforming Assets
Originated nonaccrual loans and leases	$	33,881	$	32,100	$	32,554	$	33,388	$	36,996	$	33,388
Acquired nonaccrual loans and leases		8,008		6,916		4,561		4,352		-		4,352
Originated loans and leases 90 days past due and accruing		1,217		156		157		257		126		257
Troubled debt restructurings not included above		46		-		-		1,532		1,468		1,532
Total nonperforming loans and leases		43,152		39,172		37,272		39,529		38,590		39,529
OREO (8)		6,264		4,918		3,950		4,862		4,675		4,862
Total nonperforming assets		49,416		44,090		41,222		44,391		43,265		44,391

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Sep-13		Jun-13		Mar-13		Dec-12		Sep-12		Dec-12
Loans and leases 30-89 days past due and
accruing (2)	$	12,193	$	9,597	$	10,888	$	7,990	$	9,412	$	7,990
Loans and leases 90 days past due and accruing (2)		1,217		156		157		257		126		257
Total originated loans and leases past due and accruing (2)		13,410		9,753		11,045		8,247		9,538		8,247
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)		1,132		1,613		3,503		1,014		669		1,014
Covered loans and leases 90 days or more past
due and accruing (3)(7)		2,980		3,091		3,809		4,272		2,837		4,272
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		6,887		5,591		5,738		4,249		5,848		4,249
Non-Covered loans and leases 90 days past
due and accruing (3)(7)		10,521		13,324		14,026		14,438		19,339		14,438
Total acquired loans and leases past due and accruing		21,520		23,619		27,076		23,973		28,693		23,973
Total loans and leases past due and accruing	$	34,930	$	33,372	$	38,121	$	32,220	$	38,231	$	32,220
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	24,853	$	24,598	$	24,643	$	26,632	$	26,865	$	27,593
Provision for loan and lease losses		1,499		(994)		820		5,659		1,042		8,837
Net loan and lease charge-offs (recoveries)		630		(1,249)		865		7,648		1,275		11,787
Allowance for loan and lease losses (originated		25,722		24,853		24,598		24,643		26,632		24,643
loan portfolio) - balance at end of period
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	605	$	63	$	0	$	0	$	0	$	0
Provision for loan and lease losses		549		3,483		218		0		0		0
Net loan and lease (recoveries) charge-offs		468		2,941		155		0		0		0
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		686		605		63		0		0		0
Total allowance for loan and lease losses		26,408		25,458		24,661		24,643		26,632		24,643
Loan Classification - Originated Portfolio
Special Mention	$	42,975	$	43,099	$	48,468	$	56,342	$	58,598	$	56,342
Substandard		37,004		41,969		43,449		45,083		54,383		45,083
Doubtful		0		0		0		0		494		0
Loan Classification - Acquired Portfolio
Special Mention		23,939		29,300		26,568		25,381		14,723		25,381
Substandard		42,433		55,079		47,698		45,207		31,087		45,207
Loan Classifications - Total Portfolio
Special Mention		66,914		72,399		75,036		81,723		73,321		81,723
Substandard		79,437		97,048		91,147		90,290		85,470		90,290
Doubtful		0		0		0		0		494		0

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Sep-13		Jun-13		Mar-13		Dec-12		Sep-12		Dec-12
Nonperforming loans and leases/total loans and leases (7)		1.38%		1.28%		1.24%		1.34%		1.32%		1.34%
Nonperforming assets/total assets		1.00%		0.89%		0.83%		0.92%		0.88%		0.92%
Allowance for originated loan and lease losses/total originated loans and leases		1.06%		1.08%		1.11%		1.16%		1.29%		1.16%
Allowance/nonperforming loans and leases		61.20%		64.99%		66.16%		62.34%		69.01%		62.34%
Net loan and lease losses (annualized)/total average loans and leases		0.14%		0.22%		0.14%		1.04%		0.20%		0.49%
Capital Adequacy (period-end)
Tier 1 capital / average assets		8.37%		8.16%		8.11%		7.95%		8.50%		7.95%
Total capital / risk-weighted assets		13.32%		13.34%		12.93%		12.94%		12.87%		12.94%
Tangible common equity / tangible assets		6.92%		6.65%		6.87%		6.96%		6.75%		6.96%
Profitability
Return on average assets *		1.14%		0.89%		0.95%		0.91%		0.31%		0.76%
Return on average equity *		12.83%		9.87%		10.53%		10.01%		3.38%		8.30%
Net interest margin (TE) *		3.63%		3.58%		3.57%		3.83%		3.66%		3.65%
* Quarterly ratios have been annualized
Non-GAAP Disclosure
Reported noninterest income (GAAP)	$	18,528	$	16,541	$	17,390	$	15,608	$	14,773	$	54,808
Adjustments (pre-tax):
Gain on redemption of trust preferred		(1,410)		0		0		0		0		0
Noninterest income (Non-GAAP)	$	17,118	$	16,541	$	17,390	$	15,608	$	14,773	$	54,808
Non-GAAP Disclosure
Reported net income (GAAP)	$	14,049	$	11,007	$	11,510	$	11,161	$	3,487	$	31,285
Adjustments (net of tax):
Accrual adjustment VISA		0		0		0		0		0		(243)
Merger related expenses		0		22		118		462		8,424		9,664
Gain on redemption of trust preferred		(846)		0		0		0		0		0
Subtotal adjustments		(846)		22		118		462		8,424		9,421
Net operating income (Non-GAAP)		13,203		11,029		11,628		11,623		11,911		40,706
Weighted average shares outstanding (diluted)		14,622,512		14,500,429		14,436,757		14,374,368		13,630,464		12,836,043
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.90	$	0.76	$	0.81	$	0.81	$	0.87	$	3.17
Non-GAAP Disclosure
Reported net income (GAAP)	$	14,049	$	11,007	$	11,510	$	11,161	$	3,487	$	31,285
Accrual adjustment VISA		0		0		0		0		0		(243)
Merger related expenses (net of tax)		0		22		118		462		8,424		9,664
Gain on redemption of trust preferred (net of tax)		(846)		0		0		0		0		0
Net operating income (Non-GAAP)	$	13,203	$	11,029	$	11,628	$	11,623	$	11,911	$	40,706
Amortization of intangibles, (net of tax)		327		328		334		348		256		758
Adjusted net operating income (Non-GAAP)		13,530		11,357		11,962		11,971		12,167		41,464
Average total shareholders' equity		434,482		447,088		443,277		443,592		410,300		376,890
Less:  Average goodwill and intangibles		109,277		110,037		110,687		114,644		92,748		76,149
Average tangible shareholders' equity (Non-GAAP)		325,205		337,051		332,590		328,948		317,552		300,741
Adjusted operating return on shareholders' tangible equity (annualized) (Non-GAAP)		16.51%		13.52%		14.59%		14.48%		15.24%		13.79%

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure		Quarter-Ended									Year-Ended
		Sep-13		Jun-13		Mar-13		Dec-12		Sep-12		Dec-12
Total shareholders' equity (GAAP)	$	444,276	$	431,894	$	446,812	$	441,360	$	440,950	$	441,360
Less:  goodwill and intangibles		108,981		109,540		110,314		110,948		114,859		110,948
Tangible shareholders' equity		335,295		322,354		336,498		330,412		326,030		330,412
Ending shares outstanding		14,692,671		14,599,558		14,447,017		14,390,801		14,358,230		14,390,801
Tangible book value per share (Non-GAAP)		22.82		22.08		23.29		22.96		22.71		22.96

Non-GAAP Disclosure	Year-to-date period ended
	Sep-13		Sep-12
Reported net income (GAAP)		36,565	$	20,124
Adjustments (net of tax):
Accrual adjustment VISA		0		(243)
Merger related expenses		140		9,202
Gain on redemption of trust preferred		(846)		0
Subtotal adjustments		(706)		8,959
Net operating income (Non-GAAP)		35,859		29,083
Weighted average shares outstanding (diluted)		14,622,512		12,319,541
Adjusted diluted earnings per share	$	2.45	$	2.36
(1) Federal Reserve peer ratio as of June 30, 2013, 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, 2012.
(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.  There have been no significant changes in expected cash flows since acquisition.
(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.