Tompkins Financial(TMP) - 2022 Q2 - Quarterly Report

Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended June 30, 2022, was $20,869 thousand, down from $22,831 thousand in the same period last year, a decrease of 8.59%[15]. - Basic earnings per share for the three months ended June 30, 2022, was $1.45, compared to $1.55 for the same period in 2021, a decline of 6.45%[15]. - For the six months ended June 30, 2022, net income available to common shareholders was $44,142,000, resulting in a basic EPS of $3.06 and diluted EPS of $3.05[79]. - The company experienced a decrease in net income from $48,457,000 in the prior year to $44,142,000 in the current year for the six-month period[79]. - Net income for Q2 2022 was $20.9 million, or $1.45 diluted earnings per share, down 8.6% from $22.8 million, or $1.54 per share in Q2 2021[166]. Asset Management - Total assets increased to $7,842,461 thousand as of June 30, 2022, compared to $7,819,982 thousand as of December 31, 2021, reflecting a growth of 0.29%[12]. - As of June 30, 2022, total shareholders' equity was $624,318,000, a decrease from $728,253,000 at the same time in 2021[24]. - The total available-for-sale debt securities amounted to $2,075,020, with a fair value of $1,891,718, reflecting unrealized losses of $183,448[33]. - The total assets included cash and cash equivalents of $80,392 and securities held-to-maturity valued at $312,315, with a fair value of $274,660[133]. - Total assets as of June 30, 2022, were $7.8 billion, up $22.5 million or 0.3% from December 31, 2021, primarily due to loan growth[200]. Loans and Leases - Net loans and leases rose to $5,118,710 thousand, up from $5,032,624 thousand, marking an increase of 1.71%[12]. - Total loans and leases amounted to $15,101,000 in nonaccrual loans and $26,033,000 in loans and leases past due over 89 days as of December 31, 2021[54]. - The total past due loans and leases as of June 30, 2022, were $22,669, representing an increase from $11,227 as of December 31, 2021[48]. - The total commercial real estate loans reached $2,770,574 as of June 30, 2022, up from $2,653,154 as of December 31, 2021[46]. - Total loans and leases for Q2 2022 were $5.12 billion, with a yield of 4.14%, slightly up from 4.10% in Q2 2021[179]. Income and Expenses - Net interest income for the three months ended June 30, 2022, was $58,262 thousand, compared to $54,846 thousand for the same period in 2021, representing an increase of 4.83%[15]. - Noninterest income totaled $18,944 thousand for the three months ended June 30, 2022, slightly up from $18,858 thousand in the prior year, an increase of 0.46%[15]. - Total other operating expenses for the six months ended June 30, 2022, were $25,049, compared to $21,355 for the same period in 2021, reflecting an increase of approximately 17%[94]. - Noninterest expense for Q2 2022 was $39.4 million, an increase of $1.5 million or 4.0% compared to Q2 2021, influenced by one-time expenses related to the consolidation of banking charters[173]. - Noninterest income for Q2 2022 was $6.3 million, down $118,000 or 1.8% from Q2 2021, primarily due to reduced income on bank-owned life insurance and lower gains on residential loans[172]. Credit Losses and Provisions - The allowance for credit losses (ACL) increased to $43,793,000 by the end of June 30, 2022, from $42,126,000 at the beginning of the period[63]. - The provision for credit loss expense for the three months ended June 30, 2022, was $(4,901,000), indicating a reversal compared to a provision of $336,000 in the same period last year[114]. - The provision for credit losses was an expense of $856,000 for Q2 2022, compared to a credit of $3.1 million in Q2 2021[171]. - The company recorded no new troubled debt restructurings (TDRs) during the three and six months ended June 30, 2022, or 2021[70]. - The company utilizes a discounted cash flow (DCF) method to estimate expected credit losses, adjusting for factors such as prepayment speed and probability of default[56]. Shareholder Equity and Dividends - The company declared cash dividends of $0.57 per share, totaling $8,299,000 for the six months ended June 30, 2022[24]. - The company’s common stock repurchased and returned to unissued status amounted to 49,629 shares, resulting in a reduction of $3,758,000 in equity[24]. - The company’s retained earnings as of June 30, 2022, were $502,770,000, an increase from $450,773,000 in the previous year[25]. - The company has maintained a strong capital position with a total equity ratio of approximately 9.1% as of June 30, 2022[114]. - Total equity as of June 30, 2022, was $728,253,000, compared to $667,007,000 in the previous year, reflecting an increase of 9%[114]. Market and Regulatory Environment - Tompkins Financial Corporation is regulated under the Bank Holding Company Act and is subject to examination by the Federal Reserve Board[26]. - The company merged its four wholly-owned banking subsidiaries into Tompkins Trust Company, which was renamed Tompkins Community Bank effective January 1, 2022[26]. - The Company’s strategic initiative includes a focus on responsible and sustainable growth, targeting acquisitions of financial institutions and branches to enhance market presence[145]. - The Company’s insurance subsidiary, Tompkins Insurance, has successfully consolidated smaller agencies, expanding its market reach and service offerings[148]. - The Company’s wealth management services are provided under the trade name Tompkins Financial Advisors, enhancing customer service integration[147].