Tompkins Financial(TMP) - 2024 Q1 - Quarterly Results

Earnings Performance - Diluted earnings per share for Q1 2024 were $1.18, up 12.4% from the previous quarter, but down 12.6% from $1.35 in Q1 2023[1] - Net income for Q1 2024 was $16.9 million, a 12.5% increase from the prior quarter, but a 13.0% decrease from $19.4 million in Q1 2023[2] - Net income attributable to Tompkins Financial Corporation was $16,872 thousand for Q1 2024, down from $19,381 thousand in Q1 2023, a decline of 13.00%[26] - Basic earnings per share for Q1 2024 was $1.19, compared to $1.35 in Q1 2023, reflecting a decrease of 11.85%[26] - Basic earnings per share for the quarter were $1.19, compared to $1.06 in the previous quarter[31] Income and Revenue - Noninterest income for Q1 2024 was $22.1 million, up 8.5% from Q1 2023, driven by increases in fee-based revenues[11] - Interest and dividend income for Q1 2024 was $83,183 thousand, up 19.99% from $69,238 thousand in Q1 2023[26] - Net interest income after provision for credit loss expense was $49,821 thousand, a decrease of 9.83% compared to $55,071 thousand in Q1 2023[26] - Noninterest income increased to $22,137 thousand, up from $20,400 thousand in Q1 2023, marking an increase of 8.54%[26] - Noninterest income for the quarter was $22,137 thousand, an increase from $18,850 thousand in the previous quarter[31] Expenses and Costs - Total operating expenses were $49.9 million in Q1 2024, down 2.8% from Q4 2023 and 0.6% from Q1 2023[9] - Average cost of deposits rose to 1.54% in Mar-24 from 1.43% in Dec-23, reflecting increased funding costs[33] Loans and Assets - Average loans increased by $134.9 million, or 2.5%, from Q4 2023, and by $370.3 million, or 7.1%, from Q1 2023, mainly in the commercial real estate portfolio[7] - Total loans and leases rose to $5,621,604 thousand, with net interest income from loans at $71,779 thousand, yielding 5.14%[28] - Total loans and leases past due and accruing increased to $8,166,000 in Mar-24 from $4,311,000 in Dec-23, reflecting a significant rise[33] Interest and Margins - Net interest income decreased to $50.7 million in Q1 2024, down from $52.4 million in Q4 2023 and $54.2 million in Q1 2023, primarily due to increased funding costs[5] - The net interest margin for Q1 2024 was 2.73%, down from 2.82% in Q4 2023 and 2.99% in Q1 2023, due to higher funding costs[4] - The interest rate spread for Q1 2024 was 1.95%, down from 2.09% in the previous quarter[27] - The interest rate spread decreased to 1.95% from 2.55% year-over-year[28] - Average yield on interest-earning assets increased to 4.47% in Mar-24 from 4.34% in Dec-23, reflecting better asset performance[33] Deposits and Liquidity - Total deposits at March 31, 2024, were $6.4 billion, up $49.8 million, or 0.8%, from December 31, 2023, but down $59.4 million, or 0.9%, from March 31, 2023[9] - Total deposits rose to $6,449,616 thousand, an increase of 0.78% from $6,399,847 thousand[24] - The Company's liquidity position included $1.5 billion in ready access liquidity, representing 19.3% of total assets at March 31, 2024[20] Credit Quality - The allowance for credit losses was 0.92% of total loans at March 31, 2024, up from 0.87% at March 31, 2023[14] - The allowance for credit losses increased to $51,704 thousand, up from $51,584 thousand in the previous quarter[29] - The provision for credit losses was $348,000 in Mar-24, a decrease from $2,658,000 in Dec-23, suggesting improved credit quality[33] - Nonperforming assets totaled $62,695 thousand, with nonaccrual loans and leases at $62,544 thousand[32] - Nonperforming loans and leases to total loans and leases ratio remained stable at 1.11% in Mar-24, unchanged from Dec-23[33] Capital and Equity - Total equity decreased slightly to $669,338 thousand as of March 31, 2024, from $669,934 thousand as of December 31, 2023[24] - The total capital to risk-weighted assets ratio was 13.43% in Mar-24, up from 13.36% in Dec-23, indicating strong capital adequacy[33] - Tangible book value per share (Non-GAAP) was $39.85 in Mar-24, slightly down from $39.88 in Dec-23[35] Asset Management - Total assets decreased to $7,778,034 thousand as of March 31, 2024, from $7,819,749 thousand as of December 31, 2023, representing a decline of 0.53%[24] - Total interest-earning assets increased to $7,517,705 thousand with a net interest income of $50,675 thousand, reflecting a yield of 4.47%[28]