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, Executive VP, CFO & COO

Tompkins Financial Corporation (888) 503-5753

For Immediate Release

Friday, January 29, 2016

Tompkins Financial Corporation Reports Increased Fourth Quarter Earnings and Record Full Year Results

ITHACA, NY – Tompkins Financial Corporation (NYSEMKT: TMP)

Tompkins Financial Corporation reported record diluted earnings per share of $3.87 for the year ended December 31, 2015, up 11.2% from $3.48 per share reported for the year ended December 31, 2014. The Company reported diluted earnings per share of $0.92 for the fourth quarter of 2015, an increase of 8.2% from the $0.85 reported for the fourth quarter of 2014.

Year-to-date results in 2015 included a non-recurring income item, which is more fully described in the non-GAAP disclosure tables included in this press release. Excluding this non-recurring item, diluted earnings per share for the year-to-date period ended December 31, 2015 reflected an increase of 4.3%.

President and CEO, Stephen S. Romaine said “We are pleased to report on continued strong earnings performance for the current quarter and annual periods. 2015 was our third consecutive year of record earnings. Strong growth in the loan portfolio was a key driver of our success during the current year, which helped offset the negative impact of a declining net interest margin.”

Selected highlights for FOURTH quarter:

§

Year end loan balances were up 11.2% over December 31, 2014, and are up 3.8% over the most recent prior quarter end.

§

Noninterest-bearing deposits were up 11.3% compared to prior year-end, and up 2.4% compared to the most recent prior quarter.

§

Credit quality continues to improve with nonperforming assets down 13.3% compared to the fourth quarter of 2014, and down 7.3% compared to third quarter of 2015.

§

Criticized and Classified loan balances were down 33.8% from the fourth quarter of 2014, and down 21.1% compared to third quarter of 2015.

§

Net interest income for the fourth quarter of 2015 was up 4.2% compared to fourth quarter of 2014, and up 2.5% compared to the most recent prior quarter.

§

Tangible book value per share increased 7.1% from the fourth quarter of 2014, and was down 0.6% from the most recent prior quarter. Refer to Non-GAAP disclosure for additional details on tangible book value per share.

NET INTEREST INCOME

Net interest income of $43.4 million for the fourth quarter of 2015 reflected an increase of 2.5% when compared to the most recent prior quarter end, and an increase of 4.2% when compared to the same period in 2014. Year-to-date net interest income of $168.4 million was up 2.8% compared to the same period in 2014. Growth in loans helped offset the decline in the net interest margin, which was 3.35% for the fourth quarter 2015 and prior quarter, and 3.53% for the fourth quarter 2014.

Average loan balances for the year ended December 31, 2015, were up 9.0%, and average deposit balances were up 4.7% compared to average balances for the year ended December 31, 2014.

NONINTEREST INCOME

Noninterest income represented 29.9% of total revenues for the year ended December 31, 2015, compared to 30.2% in 2014. Noninterest income was $17.9 million for the fourth quarter of 2015, and $71.9 million year-to-date, down 0.8% and up 1.7%, respectively, when compared to the same periods last year. Contributing to the year-to-date growth were an increase in insurance revenue of $797,000, an increase in net gains on the sale of securities of $717,000, and an increase in net gains on the sale of other real estate owned of $355,000.

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the fourth quarter of 2015, which was in line with the same period last year. Year-to-date noninterest expense of $149.9 million was down 3.1% compared to the year-to-date period in 2014. Year-to-date results included 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 remained strong in the fourth quarter of 2015. Fourth quarter nonperforming assets were down 13.3% compared to same period in 2014, and down 7.3% compared to the most recent prior quarter end. Nonperforming assets represented 0.43% of total assets at December 31, 2015, down from 0.47% at the prior quarter end, and 0.54% at the prior year end. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.97%. Substandard and Special Mention loan balances decreased by 32.3% compared to year end 2014, and by 19.3% compared to the most recent prior quarter.

Provision for loan and lease losses was $1.5 million for the current quarter, and $2.9 million for the full year ended December 31, 2015, compared to $1.6 million and $2.3 million for the respective periods in 2014. The year-over-year increase in provision expense is primarily due to growth in the loan portfolio.

The Company’s allowance for originated loan and lease losses increased to $31.3 million at December 31, 2015, up from $28.2 million at December 31, 2014. This increase in the allowance is mainly due to loan growth and is partially offset by improved asset quality. This allowance represented 0.95% of originated loans and leases at December 31, 2015, compared to 0.99% a year earlier. The total allowance represented 146.74% of total nonperforming loans and leases at December 31, 2015, up from 128.4% at December 31, 2014.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital to average assets of 8.82% is up from 8.75% at December 31, 2014. The ratio of tangible common equity to tangible assets (refer to Non-GAAP disclosures) of 7.37% was in line with the 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, visitwww.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				12/31/2015		12/31/2014
Cash and noninterest bearing balances due from banks			$	56,261	$	53,921
Interest bearing balances due from banks				1,996		2,149
	Cash and Cash Equivalents			58,257		56,070
Trading securities, at fair value				7,368		8,992
Available-for-sale securities, at fair value (amortized cost of $1,390,255 at December 31,
	2015 and $1,397,458 at December 31, 2014)			1,385,684		1,402,236
Held-to-maturity securities, at amortized cost (fair value of $146,686 at December 31, 2015
	and $89,036 at December 31, 2014)			146,071		88,168
Originated loans and leases, net of unearned income and deferred costs and fees (2)				3,310,768		2,839,974
Acquired loans and leases, covered (3)				14,031		19,319
Acquired loans and leases, non-covered (3)				447,243		533,995
Less:   Allowance for loan and lease losses				32,004		28,997
	Net Loans and Leases			3,740,038		3,364,291
FDIC indemnification asset				158		1,903
Federal Home Loan Bank stock				29,969		21,259
Bank premises and equipment, net				60,331		59,800
Corporate owned life insurance				75,792		73,725
Goodwill				91,792		92,243
Other intangible assets, net				12,448		14,649
Accrued interest and other assets				82,087		86,225
	Total Assets		$	5,689,995	$	5,269,561
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,401,519		2,247,708
	Time			855,133		898,081
	Noninterest bearing			1,138,654		1,023,365
	Total Deposits			4,395,306		4,169,154
Federal funds purchased and securities sold under agreements to repurchase				136,513		147,037
Other borrowings, including certain amounts at fair value of $10,576 at December 31, 2015
	and $10,961 at December 31, 2014			536,285		356,541
Trust preferred debentures				37,509		37,337
Other liabilities				67,916		69,909
	Total Liabilities		$	5,173,529	$	4,779,978
EQUITY
Tompkins Financial Corporation shareholders’ equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		15,015,594 at December 31, 2015; and 14,931,354 at December 31, 2014		1,502		��1,493
	Additional paid-in capital			350,823		348,889
	Retained earnings			197,445		165,160
	Accumulated other comprehensive loss			(31,001)		(24,011)
	Treasury stock, at cost – 113,787 shares at December 31, 2015, and 111,436 shares
		at December 31, 2014		(3,755)		(3,400)
	Total Tompkins Financial Corporation Shareholders’ Equity			515,014		488,131
Noncontrolling interests				1,452		1,452
	Total Equity		$	516,466	$	489,583
	Total Liabilities and Equity		$	5,689,995	$	5,269,561

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended				Twelve Months Ended
(In thousands, except per share data) (Unaudited)		12/31/2015		12/31/2014		12/31/2015		12/31/2014
INTEREST AND DIVIDEND INCOME
Loans	$	39,966	$	38,366	$	154,636	$	150,966
Due from banks		1		0		4		2
Trading securities		82		97		352		418
Available-for-sale securities		7,306		7,661		29,525		31,298
Held-to-maturity securities		915		373		3,100		999
Federal Home Loan Bank stock and Federal Reserve Bank stock		295		194		1,129		810
Total Interest and Dividend Income		48,565		46,691		188,746		184,493
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		309		348		1,367		1,370
Other deposits		2,247		2,388		9,084		9,711
Federal funds purchased and securities sold under agreements to
repurchase		689		684		2,709		2,947
Trust preferred debentures		582		573		2,308		2,287
Other borrowings		1,301		1,006		4,897		4,368
Total Interest Expense		5,128		4,999		20,365		20,683
Net Interest Income		43,437		41,692		168,381		163,810
Less:   Provision for loan and lease losses		1,533		1,555		2,945		2,306
Net Interest Income After Provision for Loan and Lease Losses		41,904		40,137		165,436		161,504
NONINTEREST INCOME
Insurance commissions and fees		6,945		6,666		29,286		28,489
Investment services income		3,898		3,945		15,416		15,493
Service charges on deposit accounts		2,513		2,394		9,325		9,404
Card services income		1,993		1,974		7,837		7,942
Mark-to-market loss on trading securities		(89)		(89)		(295)		(269)
Mark-to-market gain on liabilities held at fair value		159		71		385		331
Other income		2,488		2,854		8,878		8,984
Gain on sale of available-for-sale securities		3		241		1,108		391
Total Noninterest Income		17,910		18,056		71,940		70,765
NONINTEREST EXPENSES
Salaries and wages		18,388		17,699		72,707		69,558
Pension and other employee benefits		5,182		5,138		16,025		21,102
Net occupancy expense of premises		3,009		2,908		12,312		12,203
Furniture and fixture expense		1,681		1,461		6,146		5,708
FDIC insurance		774		678		2,992		2,906
Amortization of intangible assets		510		525		2,013		2,095
Other operating expense		9,826		10,609		37,667		41,121
Total Noninterest Expenses		39,370		39,018		149,862		154,693
Income Before Income Tax Expense		20,444		19,175		87,514		77,576
Income Tax Expense		6,557		6,453		28,962		25,404
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		13,887		12,722		58,552		52,172
Less:   Net income attributable to noncontrolling interests		33		33		131		131
Net Income Attributable to Tompkins Financial Corporation	$	13,854	$	12,689	$	58,421	$	52,041
Basic Earnings Per Share	$	0.93	$	0.86	$	3.91	$	3.51
Diluted Earnings Per Share	$	0.92	$	0.85	$	3.87	$	3.48

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				December 31, 2015					December 31, 2015					December 31, 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		$	2,070	$	1	0.19%	$	1,812	$	4	0.22%	$	1,014	$	2	0.20%
	Securities (4)
		U.S. Government securities		1,441,597		7,693	2.12%		1,441,420		30,500	2.12%		1,332,449		30,384	2.28%
		Trading securities		7,621		82	4.32%		8,231		352	4.28%		10,068		418	4.15%
		State and municipal (5)		93,425		823	3.49%		88,504		3,308	3.74%		85,402		3,290	3.85%
		Other securities (5)		3,917		30	3.04%		3,785		121	3.20%		4,489		139	3.10%
		Total securities		1,546,560		8,628	2.21%		1,541,940		34,281	2.22%		1,432,408		34,231	2.39%
	FHLBNY and FRB stock			24,861		295	4.71%		24,046		1,129	4.70%		19,168		810	4.23%
	Total loans and leases, net of unearned income (5)(6)			3,687,488		40,675	4.38%		3,531,945		157,222	4.45%		3,238,992		152,958	4.72%
	Total interest-earning assets			5,260,979		49,599	3.74%		5,099,743		192,636	3.78%		4,691,582		188,001	4.01%
Other assets				363,372					355,471					375,073
	Total assets			5,624,351					5,455,214					5,066,655
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,453,336		957	0.15%		2,363,087		3,821	0.16%		2,286,707		4,312	0.19%
		Time deposits		867,140		1,599	0.73%		895,391		6,630	0.74%		904,040		6,769	0.75%
		Total interest-bearing deposits		3,320,476		2,556	0.31%		3,258,478		10,451	0.32%		3,190,747		11,081	0.35%
Federal funds purchased & securities sold under
		agreements to repurchase		143,389		689	1.91%		137,917		2,709	1.96%		145,876		2,947	2.02%
Other borrowings				429,361		1,301	1.20%		417,737		4,897	1.17%		251,312		4,368	1.74%
Trust preferred debentures				37,481		582	6.16%		37,417		2,308	6.17%		37,249		2,287	6.14%
	Total interest-bearing liabilities			3,930,707		5,128	0.52%		3,851,549		20,365	0.53%		3,625,184		20,683	0.57%
Noninterest bearing deposits				1,107,370					1,029,545					903,628
Accrued expenses and other liabilities				67,745					66,366					54,244
	Total liabilities			5,105,822					4,947,460					4,583,056
Tompkins Financial Corporation Shareholders’ equity				516,988					506,243					482,087
Noncontrolling interest				1,541					1,511					1,512
	Total equity			518,529					507,754					483,599
	Total liabilities and equity		$	5,624,351				$	5,455,214				$	5,066,655
Interest rate spread							3.22%					3.25%					3.44%
	Net interest income/margin on earning assets					44,471	3.35%				172,271	3.38%				167,318	3.57%
Tax Equivalent Adjustment						(1,034)					(3,890)					(3,508)
	Net interest income per consolidated financial statements				$	43,437				$	168,381				$	163,810

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Dec-15		Sep-15		Jun-15		Mar-15		Dec-14		Dec-15
Period End Balance Sheet
Securities	$	1,539,123	$	1,542,332	$	1,536,374	$	1,555,597	$	1,499,396	$	1,539,123
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,310,768		3,149,386		3,013,968		2,898,533		2,839,974		3,310,768
Acquired loans and leases (3)		461,274		484,927		507,963		529,024		553,314		461,274
Allowance for  loan and lease losses		32,004		30,965		30,091		29,485		28,997		32,004
Total assets		5,689,995		5,594,718		5,436,136		5,357,533		5,269,561		5,689,995
Total deposits		4,395,306		4,437,073		4,204,089		4,282,766		4,169,154		4,395,306
Federal funds purchased and securities sold under agreements to repurchase		136,513		134,941		131,063		135,769		147,037		136,513
Other borrowings		536,285		398,946		493,326		330,850		356,541		536,285
Trust preferred debentures		37,509		37,466		37,423		37,380		37,337		37,509
Total common equity		515,014		516,409		503,877		502,811		488,131		515,014
Total equity		516,466		517,959		505,394		504,296		489,583		516,466
Average Balance Sheet
Average earning assets	$	5,260,979	$	5,138,665	$	5,038,586	$	4,956,972	$	4,799,027	$	5,099,743
Average assets		5,624,351		5,486,645		5,391,114		5,315,002		5,193,347		5,455,214
Average interest-bearing liabilities		3,930,707		3,856,025		3,835,430		3,782,355		3,668,311		3,851,549
Average equity		518,529		509,518		505,667		497,047		495,531		507,754
Share data
Weighted average shares outstanding (basic)		14,719,394		14,739,915		14,751,844		14,701,397		14,639,631		14,728,193
Weighted average shares outstanding (diluted)		14,869,103		14,866,735		14,878,107		14,837,935		14,765,855		14,863,026
Period-end shares outstanding		14,979,684		14,905,576		14,942,107		14,962,079		14,895,444		14,979,684
Common equity book value per share	$	34.38	$	34.65	$	33.72	$	33.61	$	32.77	$	34.38
Tangible book value per share (Non-GAAP)	$	27.48	$	27.64	$	26.71	$	26.56	$	25.66	$	27.48
Income Statement
Net interest income	$	43,437	$	42,386	$	41,330	$	41,228	$	41,692	$	168,381
Provision (Credit) for loan/lease losses		1,533		281		922		209		1,555		2,945
Noninterest income		17,910		17,422		18,962		17,646		18,056		71,940
Noninterest expense		39,370		37,882		32,918		39,692		39,018		149,862
Income tax expense		6,557		7,115		9,030		6,260		6,453		28,962
Net income attributable to Tompkins Financial Corporation		13,854		14,497		17,390		12,680		12,689		58,421
Noncontrolling interests		33		33		32		33		33		131
Basic earnings per share (9)	$	0.93	$	0.97	$	1.16	$	0.85	$	0.86	$	3.91
Diluted earnings per share (9)	$	0.92	$	0.96	$	1.15	$	0.84	$	0.85	$	3.87
Nonperforming Assets
Originated nonaccrual loans and leases	$	13,506	$	14,821	$	14,566	$	13,811	$	14,299	$	13,506
Acquired nonaccrual loans and leases		4,331		4,908		5,030		4,683		4,729		4,331
Originated loans and leases 90 days past due and accruing		58		57		58		236		106		58
Troubled debt restructurings not included above		3,915		3,465		1,939		1,589		3,444		3,915
Total nonperforming loans and leases		21,810		23,251		21,593		20,319		22,578		21,810
OREO (8)		2,692		3,188		2,570		5,816		5,683		2,692
Total nonperforming assets	$	24,502	$	26,439	$	24,163	$	26,135	$	28,261	$	24,502

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Dec-15		Sep-15		Jun-15		Mar-15		Dec-14		Dec-15
Loans and leases 30-89 days past due and
accruing (2)	$	3,280	$	3,550	$	3,315	$	2,438	$	6,849	$	3,280
Loans and leases 90 days past due and accruing (2)		58		57		58		236		106		58
Total originated loans and leases past due and accruing (2)		3,338		3,607		3,373		2,674		6,955		3,338
Delinquency - Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)	$	276	$	309	$	455	$	547	$	533	$	276
Covered loans and leases 90 days or more past
due and accruing (3)(7)		524		508		674		682		914		524
Non-covered loans and leases 30-89 days past
due and accruing (3)(7)		933		1,028		917		2,546		1,186		933
Non-covered loans and leases 90 days past
due and accruing (3)(7)		1,991		2,069		3,031		2,811		2,614		1,991
Total acquired loans and leases past due and accruing		3,724		3,914		5,077		6,586		5,247		3,724
Total loans and leases past due and accruing	$	7,062	$	7,521	$	8,450	$	9,260	$	12,202	$	7,062
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	30,450	$	29,428	$	28,690	$	28,156	$	27,185	$	28,156
Provision for loan and lease losses		1,185		173		769		340		1,102		2,467
Net loan and lease charge-offs (recoveries)		323		(849)		31		(194)		131		(689)
Allowance for loan and lease losses (originated		31,312		30,450		29,428		28,690		28,156		31,312
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	515	$	663	$	795	$	841	$	601	$	841
Provision (Credit) for loan and lease losses		348		108		153		(131)		453		478
Net loan and lease charge-offs (recoveries)		171		256		285		(85)		213		627
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		692		515		663		795		841		692
Total allowance for loan and lease losses	$	32,004	$	30,965	$	30,091	$	29,485	$	28,997	$	32,004
Loan Classification - Originated Portfolio
Special Mention	$	19,657	$	25,133	$	25,706	$	34,965	$	36,331	$	19,657
Substandard		18,186		19,937		21,600		19,150		19,970		18,186
Loan Classification - Acquired Portfolio
Special Mention		540		1,446		1,589		5,053		5,758		540
Substandard		17,007		23,683		21,932		21,752		21,567		18,238
Loan Classifications - Total Portfolio
Special Mention		20,197		26,579		27,295		40,018		42,089		20,197
Substandard		35,193		43,620		43,532		40,902		41,537		36,424

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
RATIO ANALYSIS		Quarter-Ended									Year-Ended
Credit Quality		Dec-15		Sep-15		Jun-15		Mar-15		Dec-14		Dec-15
Nonperforming loans and leases/total loans and leases (7)		0.58%		0.64%		0.61%		0.59%		0.67%		0.58%
Nonperforming assets/total assets		0.43%		0.47%		0.44%		0.49%		0.54%		0.43%
Allowance for originated loan and lease losses/total originated loans and leases		0.95%		0.97%		0.98%		0.99%		0.99%		0.95%
Allowance/nonperforming loans and leases		146.74%		133.18%		139.36%		145.11%		128.43%		146.74%
Net loan and lease losses (recoveries) annualized/total average loans and leases		0.05%		(0.07%)		0.04%		(0.03%)		0.04%		(0.00%)
Capital Adequacy (period-end)
Tier 1 capital / average assets *		8.82%		8.89%		8.92%		8.85%		8.75%		8.82%
Total capital / risk-weighted assets *		13.03%		13.29%		13.46%		13.37%		13.60%		13.03%
*Beginning with March 31, 2015, ratios are calculated utilizing Basel III regulatory capital framework
Profitability
Return on average assets *		0.98%		1.05%		1.29%		0.97%		0.97%		1.07%
Return on average equity *		10.63%		11.29%		13.79%		10.35%		10.16%		11.51%
Net interest margin (TE) *		3.35%		3.35%		3.37%		3.45%		3.53%		3.38%
* Quarterly ratios have been annualized
Non-GAAP Disclosure - Adjusted Diluted Earnings Per Share
Net income available to common shareholders	$	13,854	$	14,497	$	17,390	$	12,680	$	12,689	$	58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		229		189		234		182		150		834
Adjusted net income available to common shareholders		13,625		14,308		17,156		12,498		12,539		57,587
Gain on pension plan curtailment (net of tax)		0		0		(3,602)		0		0		(3,602)
Net operating income (Non-GAAP)		13,625		14,308		13,554		12,498		12,539		54,349
Weighted average shares outstanding (diluted)		14,869,103		14,866,735		14,878,107		14,837,935		14,765,855		14,863,026
Adjusted diluted earnings per share (Non-GAAP) (9)	$	0.92	$	0.96	$	0.91	$	0.84	$	0.85	$	3.66
Non-GAAP Disclosure - Tangible Common Equity / Tangible Assets
Total Common equity	$	515,014	$	516,409	$	503,877	$	502,811	$	488,131	$	515,014
Less:   Goodwill and intangibles (10)		103,347		104,349		104,845		105,344		105,852		103,347
Tangible common equity		411,667		412,060		399,032		397,467		382,279		411,667
Total assets		5,689,995		5,594,718		5,436,136		5,357,533		5,269,561		5,689,995
Less:   Goodwill and intangibles (10)		103,347		104,349		104,845		105,344		105,852		103,347
Tangible assets		5,586,648		5,490,369		5,331,291		5,252,189		5,163,709		5,586,648
Tangible common equity / tangible assets (Non-GAAP)		7.37%		7.51%		7.48%		7.57%		7.40%		7.37%

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure - Return on Average		Quarter-Ended									Year-Ended
Tangible Common Equity		Dec-15		Sep-15		Jun-15		Mar-15		Dec-14		Dec-15
Net income available to common shareholders	$	13,854	$	14,497	$	17,390	$	12,680	$	12,689	$	58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		229		189		234		182		150		834
Adjusted net income available to common shareholders		13,625		14,308		17,156		12,498		12,539		57,587
Gain on pension plan curtailment (net of tax)		0		0		(3,602)		0		0		(3,602)
Net operating income (Non-GAAP)		13,625		14,308		13,554		12,498		12,539		54,349
Amortization of intangibles (net of tax)		306		298		300		304		315		1,208
Adjusted net operating income (Non-GAAP)		13,931		14,606		13,854		12,802		12,854		55,557
Average common equity		516,988		507,984		504,166		495,579		493,986		506,243
Less:   Average goodwill and intangibles (10)		103,963		104,633		105,130		105,644		106,151		104,837
Average tangible common equity capital		413,025		403,351		399,036		389,935		387,835		401,406
Adjusted operating return on average tangible common equity (annualized) (Non-GAAP)		13.39%		14.37%		13.93%		13.32%		13.15%		14.07%
Non-GAAP Disclosure - Tangible Book Value Per Share
Total common equity	$	515,014	$	516,409	$	503,877	$	502,811	$	488,131	$	515,014
Less:   Goodwill and intangibles (10)		103,347		104,349		104,845		105,344		105,852		103,347
Tangible common equity		411,667		412,060		399,032		397,467		382,279		411,667
Ending shares outstanding		14,979,684		14,905,576		14,942,107		14,962,079		14,895,444		14,979,684
Tangible book value per share (Non-GAAP)	$	27.48	$	27.64	$	26.71	$	26.56	$	25.66	$	27.48
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
			Dec-15		Dec-14
Net income available to common shareholders			$	58,421	$	52,041
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards				834		503
Adjusted net income available to common shareholders				57,587		51,538
Gain on pension plan curtailment				(3,602)		0
Net operating income (Non-GAAP)				53,985		51,538
Weighted average shares outstanding (diluted)				14,863,026		14,789,624
Adjusted diluted earnings per share (Non-GAAP)			$	3.63	$	3.48
(1) Federal Reserve peer ratio as of September 30, 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.