Exhibit 99.1
[GRAPHIC OMITTED]
TOMPKINS
FINANCIAL
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, CFO
Tompkins Financial Corporation 607.273.3210
For Immediate Release
Wednesday October 24, 2007
Tompkins Financial Corporation reports increase in third quarter earnings per
share
ITHACA, NY - Tompkins Financial Corporation (TMP-American Stock Exchange)
Tompkins Financial Corporation reported diluted earnings per share of $0.70 for
the third quarter of 2007, an increase of 2.9% from the $0.68 per share reported
in the same quarter of 2006. Stephen S. Romaine, President and CEO stated, "We
are very excited to show improvement in third quarter earnings per share over
prior year results, especially during a quarter in which we recognized $712,000
in after tax reorganization and associated consulting charges related to profit
improvement initiatives. These initiatives are designed to improve our overall
efficiency and prepare us for future growth. We began to see benefits from these
initiatives in the second quarter, and feel these initiatives have positioned us
well as we head into the fourth quarter and for the longer term." Net income was
$6.8 million for the third quarter of 2007, relatively unchanged from the third
quarter of 2006.
Diluted earnings per share were $1.93 for the nine months ended September 30,
2007, down 3.5% from diluted earnings per share of $2.00 for the first nine
months of 2006. Net income for the year-to-date period was $18.9 million in
2007, down 5.2% from the $20.0 million reported in the first nine months of
2006.
Although our current year-to-date results reflect a decline from 2006, diluted
earnings per share for the first nine months of 2007 would have shown a 3.6%
increase over 2006, if the prior year's results were adjusted for $685,000 in
life insurance proceeds and if current period results were adjusted for $712,000
in after-tax reorganization charges.
4
Both year-to-date and quarterly earnings per share results for 2007, benefited
from the repurchase of common shares made under our previously announced
program. The Company repurchased 96,820 shares during the third quarter of 2007
at an average price of $37.57 per share. For the first nine months of 2007, the
Company repurchased 309,099 shares at an average price of $38.73 per share.
Mr. Romaine added, "Contrary to many of the recent headlines in financial news
regarding deteriorating credit quality in the banking industry, our asset
quality remains strong. We have not been active participants in the sub-prime
lending market and both residential loan delinquencies and charge-offs are down
from the prior year." Nonperforming assets at September 30, 2007, represented a
modest 0.37% of total assets, up from 0.19% twelve months earlier, but down
slightly from June 2007. The increase over the prior year is mainly due to a
single commercial relationship, which is 90% guaranteed by a government agency.
For the nine months of 2007, net charge-offs were $968,000, up from $572,000 in
2006. Provisions expense for the year-to-date period in 2007 was $1.1 million,
slightly more than net charge-offs for the same period.
The following significant highlights and events impacted third quarter and
year-to-date results:
1 Total revenue (consisting of net interest income and
noninterest income) for 2007 was up 7.2% in the third quarter
and 4.2% for the year-to-date, over the respective periods in
2006. Revenue growth over last year would have been 5.1% for
the year-to-date if the $685,000 of life insurance proceeds
received in the second quarter of 2006 were excluded from last
year's results.
2 Net interest income was $18.5 million in the third quarter of
2007, reflecting the highest quarterly net interest income
level since March 2006. Net interest income was $54.6 million
for the year-to-date period ended September 30, 2007, down
0.6% from the prior year.
3 The net interest margin was 3.61% in the third quarter of
2007, 3.66% in the second quarter of 2007, and 3.75% in the
third quarter of 2006.
4 The improved quarterly net interest income over the prior year
resulted from growth in total loans and core deposits (total
deposits less time deposits of $100,000 or more, brokered
deposits and municipal money market deposits) which were up
7.6% and 5.0%, respectively over September 30, 2006.
5 Noninterest income for 2007 was up 16.3% for the quarter and
13.3% year-to-date. Key fee income categories showed solid
growth over the same quarter last year with investment
services income up 14.1%; insurance revenues up 13.3%; and
service charges on deposit accounts up 37.4%.
5
6 Noninterest expenses for the third quarter of 2007 were up
12.8% over the prior year, which includes $1.2 million in
expenses related to the previously mentioned reorganization
charges. Year-to-date noninterest expenses were up 8.6% over
2006 and also include the previously mentioned reorganization
charges. Current period expenses were impacted by business
expansion initiatives in 2006 and 2007, which included
insurance agency acquisitions, expansion of retail brokerage
services, and the expansion of banking offices.
Total assets were $2.3 billion at September 30, 2007, up 4.8% from December 31,
2006, and up 6.3% over September 30, 2006. Asset growth over the past twelve
months included $106.4 million in total loans and leases, and $41.0 million in
total securities.
Total deposits at September 30, 2007, were $1.7 billion, an increase of $22.3
million or 1.3% over September 30, 2006. The growth in deposits was primarily in
core deposits, which increased by $65.1 million or 5.0%. Deposit growth
benefited from the opening of three banking offices in 2006, the Southeast
Office of Mahopac National Bank (March 2006), the Greece Office of The Bank of
Castile (July 2006), and the Wappingers Falls Office of Mahopac National Bank
(December 2006). In May 2007, The Bank of Castile opened a drive-up kiosk office
in Batavia, NY.
Mr. Romaine commented, "We are very proud that our Company has a long history of
solid performance, and it is always nice to see that performance recognized by
others. Some of the recent recognitions we have received have included: Tompkins
Financial was recognized by the Staton Institute as one of America's Finest
Companies(R) (17th Annual Edition); Keefe, Bruyette & Woods recognized Tompkins
on its 2007 KBW Honor Roll(R); and AM&M Financial Services was recognized by
Wealth Manager Magazine as one of the top 500 wealth managers in the country.
Tompkins Financial Corporation operates 39 banking offices in the New York State
markets served by the Company's subsidiary banks - Tompkins Trust Company, The
Bank of Castile, and Mahopac National Bank. Through its community banking
subsidiaries, the Company provides traditional banking services, and offers a
full range of money management services through Tompkins Investment Services (a
division of Tompkins Trust Company). The Company offers insurance services
through its Tompkins Insurance Agencies, Inc. subsidiary, an independent agency
serving individuals and business clients throughout New York State. The Company
offers fee-based financial planning and wealth management services through its
AM&M Financial Services, Inc. subsidiary. AM&M Financial Services, Inc. is also
the parent Company to Ensemble Financial Services, Inc., an independent broker
dealer and leading outsourcing company for financial planners and investment
advisors. Each Tompkins subsidiary operates with a community focus, meeting the
unique needs of the communities served.
6
"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, risk, and uncertainties, all of which could change over
time. Actual results could differ materially from forward-looking statements.
7
Tompkins Financial Corporation - Condensed Consolidated Statements of Condition
(Unaudited)
(In thousands, except share data)
As of As of
ASSETS 9/30/2007 12/31/2006
------------- -------------
Cash and noninterest bearing balances due from banks $ 56,456 $ 48,251
Interest bearing balances due from banks 2,670 1,723
Federal funds sold 0 2,200
Trading securities, at fair value 66,340 0
Available-for-sale securities, at fair value 634,353 655,322
Held-to-maturity securities, fair value of $50,780 at September 30, 2007,
and $59,606 at December 31, 2006 50,549 59,038
Loans and leases, net of unearned income and deferred costs and fees 1,383,928 1,326,298
Less: Allowance for loan/lease losses 14,410 14,328
- ---------------------------------------------------------------------------------------------------------------------------
Net Loans/Leases 1,369,518 1,311,970
Bank premises and equipment, net 44,807 43,273
Corporate owned life insurance 26,555 25,622
Goodwill 21,371 21,235
Other intangible assets 3,683 4,051
Accrued interest and other assets 40,560 38,152
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets $ 2,316,862 $ 2,210,837
===========================================================================================================================
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest bearing:
Checking, savings and money market $ 750,639 $ 680,844
Time 609,985 669,222
Noninterest bearing 365,104 359,354
- ---------------------------------------------------------------------------------------------------------------------------
Total Deposits 1,725,728 1,709,420
Federal funds purchased and securities sold under agreements to
repurchase ($15,257 valued at fair value at September 30, 2007) 196,085 191,490
Other borrowings ($10,410 valued at fair value at September 30, 2007) 148,213 85,941
Other liabilities 55,541 32,914
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Total Liabilities $ 2,125,567 $ 2,019,765
- ---------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 1,487 1,452
Shareholders' equity:
Common stock - par value $.10 per share: Authorized 15,000,000 shares;
Issued: 9,612,681 at September 30, 2007; and 9,889,569 at December 31, 2006. 961 989
Additional paid-in capital 147,498 158,203
Retained earnings 52,889 44,429
Accumulated other comprehensive loss (9,826) (12,487)
Treasury stock, at cost, 69,272 shares at September 30, 2007,
and 64,418 shares at December 31, 2006. (1,714) (1,514)
- ---------------------------------------------------------------------------------------------------------------------------
Total Shareholders' Equity $ 189,808 $ 189,620
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities, Minority Interest in Consolidated Subsidiaries
And Shareholders' Equity $ 2,316,862 $ 2,210,837
===========================================================================================================================
8
Tompkins Financial Corporation - Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share data) Three months ended Nine months ended
------------------------- -------------------------
09/30/2007 09/30/2006 09/30/2007 09/30/2006
----------- ----------- ----------- -----------
INTEREST AND DIVIDEND INCOME
Loans $ 24,644 $ 22,798 $ 72,341 $ 66,360
Balances due from banks 29 8 183 73
Federal funds sold 14 0 217 9
Trading securities 813 0 1,989 0
Available-for-sale securities 7,227 7,281 22,018 20,992
Held-to-maturity securities 497 632 1,560 2,046
- --------------------------------------------------------------------------------------------------------------------------
Total Interest and Dividend Income 33,224 30,719 98,308 89,480
- --------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more 3,204 3,064 11,748 9,439
Other deposits 7,786 6,677 22,908 18,006
Federal funds purchased and securities sold under agreements
to repurchase 2,066 1,482 6,066 4,093
Other borrowings 1,665 1,392 3,031 3,050
- --------------------------------------------------------------------------------------------------------------------------
Total Interest Expense 14,721 12,615 43,753 34,588
- --------------------------------------------------------------------------------------------------------------------------
Net Interest Income 18,503 18,104 54,555 54,892
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Less: Provision for loan/lease losses 387 482 1,050 1,015
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Net Interest Income After Provision for Loan/Lease Losses 18,116 17,622 53,505 53,877
- --------------------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Investment services income 3,621 3,173 10,628 9,128
Insurance commissions and fees 2,910 2,568 8,440 7,038
Service charges on deposit accounts 2,789 2,030 7,517 6,025
Card services income 884 746 2,587 2,144
Other service charges 631 651 1,927 1,867
Trading revenue (298) 0 (446) 0
Increase in cash surrender value of corporate owned life 302 276 858 846
insurance
Life insurance proceeds 0 0 0 685
Gains on sale of loans 54 40 151 118
Other income 408 477 877 1,127
Net realized gain on available-for-sale securities 283 0 289 0
- --------------------------------------------------------------------------------------------------------------------------
Total Noninterest Income 11,584 9,961 32,828 28,978
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NONINTEREST EXPENSES
Salary and wages 9,045 8,265 26,616 24,928
Pension and other employee benefits 2,598 2,074 7,712 6,629
Net occupancy expense of bank premises 1,484 1,239 4,531 3,667
Furniture and fixture expense 949 885 2,895 2,753
Marketing expense 568 648 1,748 1,850
Professional fees 925 392 2,297 1,086
Software licenses and maintenance 552 459 1,555 1,434
Cardholder expense 241 289 732 959
Amortization of intangible assets 155 183 498 540
Other operating expense 3,182 3,026 9,885 10,013
- --------------------------------------------------------------------------------------------------------------------------
Total Noninterest Expenses 19,699 17,460 58,469 53,859
- --------------------------------------------------------------------------------------------------------------------------
Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries 10,001 10,123 27,864 28,996
- --------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 33 33 98 98
Income Tax Expense 3,163 3,287 8,820 8,919
- --------------------------------------------------------------------------------------------------------------------------
Net Income $ 6,805 $ 6,803 $ 18,946 $ 19,979
==========================================================================================================================
Basic Earnings Per Share $ 0.71 $ 0.69 $ 1.94 $ 2.02
==========================================================================================================================
Diluted Earnings Per Share $ 0.70 $ 0.68 $ 1.93 $ 2.00
==========================================================================================================================
9
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
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(In thousands, except per share data) Quarter-Ended Year-Ended
---------------------------------------------------------------------------------------
Sept-07 June-07 Mar-07 Dec-06 Sept-06 Dec-06
----------- ----------- ----------- ----------- ----------- -----------
Period End Balance Sheet
- ---------------------------------------------------------------------------------------------------------------------------------
Securities $ 751,242 $ 714,760 $ 749,764 $ 714,360 $ 710,242 $ 714,360
- ---------------------------------------------------------------------------------------------------------------------------------
Loans and leases, net of unearned
income and deferred costs and fees 1,383,928 1,361,415 1,339,995 1,326,298 1,277,552 1,326,298
- ---------------------------------------------------------------------------------------------------------------------------------
Allowance for loan/lease losses 14,410 14,357 14,523 14,328 14,120 14,328
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets 2,316,862 2,261,057 2,280,163 2,210,837 2,179,695 2,210,837
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,725,728 1,698,143 1,809,744 1,709,420 1,703,439 1,709,420
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Federal funds purchased and securities
sold under agreements to repurchase 196,085 188,939 199,665 191,490 170,679 191,490
- ---------------------------------------------------------------------------------------------------------------------------------
Other borrowings 148,213 156,214 46,311 85,941 87,003 85,941
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Shareholders' Equity 189,808 185,049 191,111 189,620 188,928 189,620
- ---------------------------------------------------------------------------------------------------------------------------------
Average Balance Sheet
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Average earning assets $ 2,097,965 $ 2,092,773 $ 2,075,905 $ 2,027,098 $ 1,986,050 $ 1,987,258
- ---------------------------------------------------------------------------------------------------------------------------------
Average assets 2,259,801 2,251,474 2,234,524 2,181,906 2,138,042 2,138,943
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Average interest-bearing liabilities 1,674,654 1,681,831 1,671,532 1,615,409 1,581,486 1,588,211
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Average equity 185,384 188,399 189,252 191,307 183,199 184,872
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Share data
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Weighted average shares outstanding
(basic) 9,627,356 9,756,118 9,846,679 9,798,941 9,816,272 9,857,787
- ---------------------------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding
(diluted) 9,699,091 9,823,184 9,947,815 9,970,466 9,960,340 9,999,365
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Period-end shares outstanding 9,580,034 9,673,858 9,809,753 9,856,922 9,790,547 9,856,922
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Book value per share $ 19.81 $ 19.13 $ 19.48 $ 19.24 $ 19.30 $ 19.24
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Income Statement
- ---------------------------------------------------------------------------------------------------------------------------------
Net interest income $ 18,503 $ 18,490 $ 17,558 $ 17,965 $ 18,104 $ 72,857
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Provision for loan/lease losses 387 192 471 409 482 1,424
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Noninterest income 11,584 10,801 10,450 12,120 9,960 41,091
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Noninterest expense 19,699 19,674 19,097 18,058 17,459 71,910
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Minority interest in consolidated
subsidiaries 33 33 33 32 33 131
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Income tax expense 3,163 3,031 2,626 3,798 3,287 12,716
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Net income 6,805 6,361 5,781 7,788 6,803 27,767
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Basic earnings per share $ 0.71 $ 0.65 $ 0.59 $ 0.79 $ 0.69 $ 2.82
- ---------------------------------------------------------------------------------------------------------------------------------
Diluted earnings per share $ 0.70 $ 0.65 $ 0.58 $ 0.78 $ 0.68 $ 2.78
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Asset Quality
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Net charge-offs $ 334 $ 358 $ 276 $ 201 $ 72 $ 773
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Nonaccrual loans and leases 7,869 8,474 7,358 2,994 3,307 2,994
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Loans and leases 90 days past due
and accruing 370 2 10 8 519 8
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Troubled debt restructurings not
included above 0 0 0 0 0 0
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Total nonperforming loans and leases 8,239 8,476 7,368 3,002 3,826 3,002
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OREO 345 362 345 348 354 348
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Nonperforming assets 8,584 8,838 7,713 3,350 4,180 3,350
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10
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
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Quarter-Ended Year-Ended
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Sept-07 June-07 Mar-07 Dec-06 Sept-06 Dec-06
----------- ----------- ----------- ----------- ----------- -----------
Credit Quality
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Net loan and lease losses/ average loans
and leases * 0.10% 0.11% 0.08% 0.06% 0.02% 0.06%
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Nonperforming loans and leases/loans
and leases 0.60% 0.62% 0.55% 0.23% 0.30% 0.23%
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Nonperforming assets/assets 0.37% 0.39% 0.34% 0.15% 0.19% 0.15%
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Allowance/nonperforming loans and leases 174.90% 169.38% 197.11% 477.28% 369.05% 477.28%
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Allowance/loans and leases 1.04% 1.05% 1.08% 1.08% 1.11% 1.08%
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Capital Adequacy (period-end)
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Tier I capital / average assets 7.9% 7.9% 8.1% 8.3% 8.3% 8.3%
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Total capital / risk-weighted assets 12.4% 12.6% 12.8% 13.1% 13.2% 13.1%
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Profitability
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Return on average assets * 1.19% 1.13% 1.05% 1.42% 1.26% 1.30%
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Return on average equity * 14.56% 13.54% 12.39% 16.15% 14.73% 15.02%
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Net interest margin (TE) * 3.61% 3.66% 3.55% 3.64% 3.75% 3.81%
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* Quarterly ratios have been annualized
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Quarter-Ended Year-Ended
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Non-GAAP Disclosure Sept-07 June-07 Mar-07 Dec-06 Sept-06 Dec-06
----------- ----------- ----------- ----------- ----------- -----------
Reported net income 6,805 6,361 5,781 7,788 6,803 27,767
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Adjustments:
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Life insurance proceeds
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Proceeds from sale of credit card
portfolio (after-tax) (1,537) (2,222)
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Reorganization related charges
(after-tax) 712
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Subtotal adjustments 712 0 0 (1,537) 0 (2,222)
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Adjusted net income 7,517 6,361 5,781 6,251 6,803 25,545
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Adjusted diluted earnings per share .78 .65 .58 .63 .68 2.56
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Year-to-date period ended
--------------------------
Non-GAAP Disclosure Sept-07 Sept-06
----------- -----------
Reported net income 18,946 19,979
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Adjustments:
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Life insurance proceeds (685)
- --------------------------------------------------------------------
Reorganization related charges
(after-tax) 712
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Subtotal adjustments 712 (685)
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Adjusted net income 19,658 19,294
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Adjusted earnings per share 2.00 1.93
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11