Tompkins Financial(US:TMP)2022-05-09 15:57Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended March 31, 2022, was $23,273 thousand, a decrease of 8.7% from $25,626 thousand for the same period in 2021[14]. - The company reported a basic earnings per share of $1.61 for Q1 2022, down from $1.73 in Q1 2021, reflecting a decrease of 6.9%[14]. - Net income available to common shareholders for the three months ended March 31, 2022, was $23,273,000, a decrease of 9.3% from $25,626,000 in the same period of 2021[76]. - Net income for Q1 2022 was $23.3 million, or $1.60 diluted earnings per share, down from $25.6 million, or $1.72 diluted earnings per share in Q1 2021[145]. - The banking segment reported net income of $20.3 million for Q1 2022, a decrease of $2.0 million or 8.9% from Q1 2021[148]. - The insurance segment reported net income of $2.1 million for Q1 2022, down $58,000 or 2.7% from Q1 2021, with insurance commissions up $271,000 or 3.5%[153]. - The wealth management segment's net income was $840,000 for Q1 2022, a decrease of $301,000 or 26.4% compared to Q1 2021, primarily due to a $447,000 or 13.6% increase in noninterest expenses[155]. Assets and Liabilities - Total assets increased to $7,891,111 thousand as of March 31, 2022, compared to $7,819,982 thousand as of December 31, 2021, reflecting a growth of 0.9%[12]. - Cash and cash equivalents at the end of the period were $175,075 thousand, a significant decrease from $518,425 thousand at the end of Q1 2021[19]. - Total deposits rose to $7,016,739 thousand as of March 31, 2022, up 3.3% from $6,791,435 thousand as of December 31, 2021[12]. - Total equity as of March 31, 2022, was $657,492,000, compared to $709,936,000 at the end of 2021, indicating a decrease in equity[106]. - The company reported total assets of $7,891,111,000 as of March 31, 2022, compared to $8,095,342,000 at the end of 2021, showing a decrease in total assets[105]. - The total loans and leases as of March 31, 2022, were $5,068,294,000, a slight decrease from $5,082,288,000 as of December 31, 2021[47]. - The total allocation for allowance for credit losses (ACL) was $67,000 as of December 31, 2021, indicating a slight increase from previous periods[65]. Income and Expenses - Net interest income after credit for credit loss expense was $57,134 thousand for Q1 2022, slightly up from $56,867 thousand in Q1 2021, indicating a growth of 0.5%[14]. - Noninterest income remained stable at $19,985 thousand for Q1 2022, compared to $19,983 thousand in Q1 2021, showing a marginal increase[14]. - Total noninterest expenses increased to $46,839 thousand in Q1 2022, up 5.2% from $44,511 thousand in Q1 2021[14]. - Noninterest expense for the three months ended March 31, 2022, was $46,839,000, compared to $44,511,000 in the same period of 2021, reflecting an increase of approximately 5.2%[105]. - Total other income for Q1 2022 was $1,476,000, a decrease of 25.3% compared to $1,974,000 in Q1 2021[86]. - Noninterest income for Q1 2022 was $20.0 million, representing 26.1% of total revenue, consistent with the prior year[164]. Credit Quality and Provisions - The allowance for credit losses decreased to $42,126 thousand as of March 31, 2022, from $42,843 thousand as of December 31, 2021, reflecting a reduction of 1.7%[12]. - The provision for credit losses was a credit of $520,000 for Q1 2022, compared to a credit of $1.8 million in Q1 2021[150]. - The company recognized a credit provision for credit loss expense of $(734) for the three months ended March 31, 2022[62]. - The company reported recoveries of $263 during the three months ended March 31, 2022[62]. - The company continues to monitor credit conditions carefully at the individual borrower level and by industry segment[143]. - The ratio of nonperforming assets to total assets was 0.38% at March 31, 2022, down from 0.40% at December 31, 2021[197]. Securities and Investments - Total available-for-sale debt securities as of March 31, 2022, were valued at $1,981,148,000, compared to $2,044,513,000 at December 31, 2021, indicating a decrease of approximately 3.1%[32]. - The company reported unrealized losses on available-for-sale debt securities of $127,048,000 as of March 31, 2022, compared to $32,903,000 at December 31, 2021, reflecting a significant increase in losses[32]. - The fair value of U.S. Treasuries was $178,903,000, reflecting unrealized losses of $12,094,000[34]. - The total held-to-maturity debt securities as of March 31, 2022, was $280,917,000, with unrealized losses of $22,607,000[35]. - The company’s securities portfolio was $2.3 billion, representing 29.0% of total assets, with a decrease in unrealized losses due to market interest rate changes[175]. Operational Changes - The company merged its four wholly-owned banking subsidiaries into Tompkins Community Bank effective January 1, 2022, streamlining operations[24]. - Tompkins Community Bank operates 63 banking offices, with 43 in New York and 20 in Pennsylvania[126]. - The Company aims for responsible and sustainable growth, including potential acquisitions of financial institutions and branches[125]. Regulatory and Compliance - Tompkins Financial Corporation is regulated under the Bank Holding Company Act and is subject to examination by the Federal Reserve Board[24]. - The company has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc., which is also subject to regulatory oversight[26]. - The capital ratios also surpassed the minimum required capital ratios for well-capitalized institutions[210].