Tompkins Financial(TMP) - 2022 Q3 - Quarterly Report

Financial Performance - Net income attributable to Tompkins Financial Corporation was $21,340 thousand for the three months ended September 30, 2022, compared to $21,342 thousand in the same period last year, indicating a marginal decrease [15]. - For the nine months ended September 30, 2022, net income available to common shareholders was $65,482,000, a decrease from $69,799,000 in 2021, representing a decline of 6.7% [81]. - Net income for Q3 2022 was $21.3 million, or $1.48 diluted earnings per share, unchanged from Q3 2021 [168]. - The banking segment reported net income of $18.0 million for Q3 2022, a 1.4% increase from Q3 2021; however, net income for the nine months ended September 30, 2022, decreased by $3.8 million, or 6.2% [171]. Assets and Liabilities - Total assets decreased to $7,779,941 thousand as of September 30, 2022, from $7,819,982 thousand as of December 31, 2021, representing a decline of 0.5% [12]. - The total shareholders' equity as of September 30, 2022, was $572,959,000, a decrease from $728,253,000 as of September 30, 2021 [24]. - The company reported total assets of $7.8 billion at September 30, 2022, down $40.0 million or 0.5% from December 31, 2021, primarily due to decreased security balances [203]. Loans and Leases - Net loans and leases increased to $5,163,664 thousand, up from $5,032,624 thousand, reflecting a growth of 2.6% year-over-year [12]. - Total loans and leases reached $5.2 billion at September 30, 2022, an increase of $133.0 million or 2.6% from December 31, 2021, primarily in commercial and residential real estate portfolios [210]. - The total past due loans as of September 30, 2022, were $24,109, compared to $11,227 as of December 31, 2021, indicating a significant increase in past due loans [49]. Income and Expenses - Net interest income for the three months ended September 30, 2022, was $58,111 thousand, compared to $56,098 thousand for the same period in 2021, marking a growth of 3.6% [15]. - Noninterest expenses for the nine months ended September 30, 2022, totaled $37,286 thousand, an increase from $35,519 thousand in the same period of 2021, indicating a rise of approximately 5% [96]. - Noninterest income for the three months ended September 30, 2022, was $20.692 million, a slight decrease from $20.854 million in the same period of 2021 [105]. Comprehensive Income - Total comprehensive loss attributable to Tompkins Financial Corporation was $(43,028) thousand for the three months ended September 30, 2022, compared to a gain of $14,130 thousand in the same period last year [17]. - The total comprehensive loss for the nine months ended September 30, 2022, was $42,997,000 compared to a total comprehensive income of $14,162,000 for the same period in 2021 [24]. - The total other comprehensive loss income for the nine months ended September 30, 2022, was $(243,237) thousand, compared to $(55,094) thousand for the same period in 2021, reflecting a substantial decline in comprehensive income [85]. Credit Quality and Losses - The allowance for credit losses (ACL) at the end of September 30, 2022, was $44,772,000, reflecting a decrease from the beginning balance of $43,793,000 [62]. - The provision for credit loss expense for the three months ended September 30, 2022, was $1,101,000, compared to a provision of $(1,177,000) for the same period in 2021 [64]. - The company recognized no interest income on nonaccrual loans during the three and nine months ended September 30, 2022 and 2021 [53]. Securities and Investments - Total available-for-sale debt securities as of September 30, 2022, amounted to $2,010,101, with a fair value of $1,740,936, reflecting unrealized losses of $269,174 [34]. - The company reported a net unrealized loss of $85,912,000 on available-for-sale debt securities for Q3 2022, compared to a loss of $10,400,000 in Q3 2021, showing a significant increase in losses [82]. - The available-for-sale debt securities portfolio had net unrealized losses of $269.2 million as of September 30, 2022, compared to $19.3 million at December 31, 2021, due to increases in market interest rates [206]. Operational Segments - The company operates through three reportable segments: Banking, Insurance, and Wealth Management, with distinct revenue streams and performance obligations [110]. - The insurance segment reported net income of $2.7 million for Q3 2022, an increase of $467,000 or 20.7% compared to Q3 2021, with total noninterest revenue up $1.0 million or 10.1% [176]. - The wealth management segment reported net income of $596,000 for Q3 2022, down $721,000 or 54.8% from Q3 2021, with revenue decreasing by $705,000 or 14.0% [179].