Tompkins Financial(US:TMP)2023-08-09 17:54Financial Performance - Net income attributable to Tompkins Financial Corporation was $8,475 thousand for the three months ended June 30, 2023, compared to $20,869 thousand for the same period in 2022, a decline of 59.39%[15]. - Basic earnings per share decreased to $0.59 for the three months ended June 30, 2023, from $1.45 in the same period last year, a drop of 59.31%[15]. - Net income for Q2 2023 was $8.5 million or $0.59 diluted earnings per share, down 59.4% from $20.9 million or $1.45 per share in Q2 2022[178]. - For the six months ended June 30, 2023, basic EPS was $1.94, down from $3.06 in 2022, reflecting a decrease of about 36.5%[80]. - The company reported a net income attributable to Tompkins Financial Corporation of $8,475,000 for the three months ended June 30, 2023, down from $20,869,000 in the same period of 2022, a decrease of approximately 59.4%[115][118]. Asset and Liability Management - Total assets decreased to $7,626,238 thousand as of June 30, 2023, from $7,670,686 thousand as of December 31, 2022, representing a decline of 0.58%[12]. - Total deposits decreased to $6,454,651 thousand, down from $6,602,295 thousand, a reduction of 2.24%[12]. - The total shareholders' equity as of June 30, 2023, was $636,441,000, a decrease from $624,318,000 as of June 30, 2022[24]. - The company repurchased 108,219 shares during the six months ended June 30, 2023, resulting in a reduction of common stock by $6,378,000[24]. - The accumulated other comprehensive loss increased to $(195,520,000) as of June 30, 2023, from $(178,869,000) as of June 30, 2022[24]. Income and Expenses - Net interest income after credit for credit loss expense was $49,643 thousand for the three months ended June 30, 2023, compared to $57,406 thousand for the same period in 2022, a decline of 13.06%[15]. - Noninterest income totaled $12,615 thousand for the three months ended June 30, 2023, down from $18,944 thousand in the same period last year, a decrease of 33.25%[15]. - Noninterest expenses for the six months ended June 30, 2023, totaled $27.937 million, up 11.5% from $25.049 million in the prior year[94]. - Noninterest income for the three months ended June 30, 2023, was $12.6 million, down $6.3 million from the same period in 2022, including a pre-tax loss of $7.1 million on the sale of available-for-sale securities[202]. - Noninterest expense for Q2 2023 was $52.0 million, up 5.8% compared to Q2 2022, and $102.1 million for the first six months, up 6.4% year-over-year[207]. Credit Quality and Provisions - The allowance for credit losses (ACL) increased to $48,545,000 as of June 30, 2023, up from $46,099,000 at the beginning of the period[63]. - The provision for credit loss expense for the three months ended June 30, 2023, was $2,419,000, compared to $780,000 for the same period in 2022[63][64]. - The provision for credit losses increased to $2.3 million for Q2 2023, compared to $856,000 in Q2 2022, driven by weaker economic forecasts and loan growth[183]. - The total past due loans as of June 30, 2023, were $41,797, which is an increase from $23,298 as of December 31, 2022, indicating a rise of approximately 79.6%[48][49]. - Nonaccrual loans totaled $9,334 as of June 30, 2023, compared to $8,000 as of December 31, 2022, showing an increase of approximately 16.7%[51]. Securities and Investments - As of June 30, 2023, the total available-for-sale debt securities amounted to $1,688,051,000, with unrealized losses of $220,058,000[33]. - The total held-to-maturity debt securities as of June 30, 2023, were valued at $312,369,000, with unrealized losses of $49,925,000[34]. - The company sold $80.9 million of available-for-sale debt securities in Q2 2023, incurring a loss of $7.1 million[34]. - The fair value of U.S. Treasuries in the available-for-sale portfolio was $168,094,000 as of June 30, 2023, with unrealized losses of $22,181,000[35]. - The total gross unrealized losses for available-for-sale debt securities were primarily due to changes in interest rates and market liquidity, not credit-related issues[39]. Operational Highlights - Tompkins Financial Corporation aims for responsible and sustainable growth, including potential acquisitions of financial institutions and services[159]. - The Company operates 60 banking offices, with 41 in New York and 19 in Pennsylvania, focusing on attracting deposits and originating various loans[160]. - Tompkins Financial Advisors provides wealth management services, including investment management and financial planning, to customers of Tompkins Community Bank[161]. - Tompkins Insurance has successfully consolidated smaller insurance agencies into its operations, enhancing its service offerings in the market areas served[162]. - The company did not contribute to the pension plan in the first six months of 2023 and 2022, maintaining a consistent approach[92].