Tompkins Financial(US:TMP)2021-11-08 18:33Financial Performance - Net income attributable to Tompkins Financial Corporation was $21,342 thousand for the three months ended September 30, 2021, compared to $24,230 thousand for the same period in 2020, a decrease of 7.8%[14]. - Basic earnings per share decreased to $1.46 for the three months ended September 30, 2021, down from $1.63 in the prior year, a decline of 10.4%[14]. - Net income for Q3 2021 was $21.3 million or $1.45 diluted earnings per share, down 11.9% from $24.2 million or $1.63 per share in Q3 2020[173]. - For the first nine months of 2021, net income increased by 30.1% to $69.8 million or $4.72 diluted earnings per share compared to $53.6 million or $3.59 per share in the same period of 2020[174]. - Net income attributable to Tompkins Financial Corporation was $53,610,000, compared to $69,799,000, a decrease of 23.2%[126]. Assets and Liabilities - Total assets increased to $8,113,110 thousand as of September 30, 2021, up from $7,622,171 thousand as of December 31, 2020, representing a growth of 6.4%[11]. - Total deposits rose to $7,090,898 thousand, an increase of 10.2% from $6,437,752 thousand[11]. - The company's total shareholders' equity as of September 30, 2021, was $722,357,000, a decrease from $713,611,000 as of September 30, 2020[24]. - The total assets of the Company included securities held-to-maturity valued at $269,268, with a fair value of $268,283[145]. - The fair value of time deposits as of September 30, 2021, was $679,335, compared to a carrying amount of $675,499[145]. Income and Expenses - Net interest income after provision for credit loss expense was $57,330 thousand for the three months ended September 30, 2021, compared to $58,471 thousand for the same period in 2020, a decrease of 2.0%[14]. - Noninterest income increased to $20,854 thousand for the three months ended September 30, 2021, up from $18,887 thousand, a growth of 10.4%[14]. - Noninterest expenses for Q3 2021 were $40.6 million, up $3.2 million or 8.5% from Q3 2020, including penalties of $2.9 million related to the prepayment of $135.0 million in FHLB fixed rate advances[181]. - Noninterest income for Q3 2021 was $6.4 million, an increase of $440,000 or 7.4% compared to Q3 2020, driven by card services income and service charges on deposit accounts[180]. - Noninterest expense for the third quarter of 2021 was $50.2 million, up 7.3% compared to the same period in 2020[204]. Loans and Credit Quality - Net loans and leases decreased to $5,050,519 thousand, down from $5,208,658 thousand, a decline of 3.0%[11]. - The total past due loans as of September 30, 2021, were $30,140, compared to $17,312 on December 31, 2020, indicating an increase of 74.1%[53][54]. - The allowance for credit losses (ACL) decreased to $46,259,000 by September 30, 2021, down from $52,293,000 at the same time in 2020, reflecting a reduction of approximately 11.5%[66]. - The provision for credit losses was a credit of $1.2 million for Q3 2021, compared to a credit of $218,000 in Q3 2020[198]. - Loans rated Substandard totaled $70.2 million as of September 30, 2021, an increase from $68.6 million at December 31, 2020[172]. Comprehensive Income - Total comprehensive income attributable to Tompkins Financial Corporation for the three months ended September 30, 2021, was $14,130 thousand, compared to $21,414 thousand, a decrease of 34.2%[16]. - The total other comprehensive loss for the nine months ended September 30, 2021, was $30,490 thousand, while for the same period in 2020, it was a comprehensive income of $26,098 thousand[90]. - Other comprehensive loss for the three months ended September 30, 2021, was $9,552,000, compared to a loss of $3,728,000 in the same period of 2020, indicating a significant increase in loss[88]. Strategic Initiatives - The company plans to merge its banking subsidiaries into one entity, Tompkins Community Bank, which has received all necessary regulatory approvals[25]. - The Company plans to rebrand and combine its four wholly-owned banking subsidiaries into one entity, Tompkins Community Bank, effective January 2022[151]. - The Company is focused on responsible and sustainable growth, including potential acquisitions of financial institutions and branches to enhance its market presence[151]. - The Company’s strategy emphasizes organic growth and acquisitions, targeting culturally similar partners with potential for improved profitability[151]. Regulatory Compliance - The total assets of Tompkins Financial Corporation are subject to examination and regulation by various authorities, ensuring compliance with financial regulations[26]. - The company’s insurance subsidiary is regulated by the New York State Department of Financial Services and the Pennsylvania Insurance Department, ensuring adherence to industry standards[27].