Tompkins Financial Corporation (NYSEMKT:TMP) reported net income of $16.9 million for the second quarter of 2017, an increase of 14.1% from the $14.8 million reported for the same period in 2016. Year to date net income was $32.6 million, an increase of $3.6 million, up 12.2% over the same period in 2016.

Diluted earnings per share were $1.11 for the second quarter of 2017, up 13.3% over the second quarter of 2016. For the year-to-date period ended June 30, 2017, diluted earnings per share were $2.13, up 11.5% over the same period in 2016.

President and CEO, Stephen S. Romaine said, “It is especially rewarding to show strong performance through the first half of 2017, while our team was also focused on a conversion of our core banking system, which was successfully completed in May of this year. Improved net interest income, which was supported by solid loan growth over the prior year, has been the primary driver of improved earnings performance in 2017.”

SELECTED HIGHLIGHTS FOR SECOND QUARTER AND YEAR TO DATE:

  • Diluted earnings per share of $1.11 for the second quarter represented a 13.3% increase over the same period last year, while year-to-date diluted earnings per share of $2.13 reflect the best earnings through the first six months of any year in our Company’s history.
  • Quarterly returns on average assets and average equity of 1.07% and 11.85%, respectively, are at their highest levels since June 2015
  • Net interest margin improved for the second consecutive quarter and is at its highest level since March 2015.
  • Total loans of $4.4 billion were up 11.1% over the same period in 2016; and are up 3.8% over December 31, 2016.
  • Total deposits of $4.8 billion reflect an increase of 6.3% over the same period last year, and are up 2.7% from December 31, 2016.

NET INTEREST INCOME

Net interest income of $50.3 million for the second quarter of 2017 increased by $5.4 million, or 12.0% compared to the same period in 2016. For the year-to-date period, net interest income was $98.3 million, up $9.4 million, or 10.6% from the same six-month period in 2016.

Net interest income benefited from growth in average loans and deposits. Average loans were up $467.1 million, or 12.2% in the first six months of 2017, versus the same period in 2016. Average deposits were up $260.3 million, or 5.8% in the first six months of 2017, versus the same period in 2016. Certain loans benefited from higher short term interest rates in 2017, resulting in an improved net interest margin in 2017. For the second quarter of 2017, net interest margin improved to 3.45%, compared to 3.38% in the first quarter of 2017, and 3.36% in the second quarter of 2016.

NONINTEREST INCOME

Noninterest income represented 25.8% of total revenues in the second quarter of 2017, compared to 27.6% in the same period in 2016, and 26.4% for the most recent prior quarter. Noninterest income of $17.5 million was up 2.1% compared to the same period last year. Declines in insurance commissions and fees, and gains on the sale of available-for-sale securities during the quarter were offset by improved card services income, which included approximately $500,000 of volume based incentives related to our branding agreement with MasterCard. Other income for the second quarter was up $379,000 from the same quarter in 2016. The improvement included approximately $130,000 of recoveries of nonaccrued interest on loans previously charged off.

NONINTEREST EXPENSE

Noninterest expense was $41.6 million for the second quarter of 2017, up $2.2 million, or 5.5%, over the second quarter of 2016. For the year-to-date period, noninterest expense was $82.9 million, up $4.0 million, or 5.1%, from the same period in 2016. The increase in noninterest expense for both the second quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $411,000 of expense related to our recently completed core system conversion, compared to $262,000 in the quarter ended March 31, 2017, and $76,000 in the quarter ended June 30, 2017.

ASSET QUALITY

Asset quality trends remained strong in the second quarter of 2017. Nonperforming assets represented 0.36% of total assets at June 30, 2017, unchanged from December 31, 2016, and up slightly from 0.32% at June 30, 2016. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.55%.

Provision for loan and lease losses was $976,000 for the second quarter of 2017, which was in line with the second quarter of 2016. Net recoveries for the second quarter of 2017 were $15,000 compared to net charge-offs of $383,000 reported in the second quarter of 2016.

The Company’s allowance for originated loan and lease losses totaled $37.0 million at June 30, 2017, and represented 0.91% of total originated loans and leases at June 30, 2017, compared to 0.92% reported for the most recent prior quarter, and 0.93% from one year ago. The total allowance represented 178.58% of total nonperforming loans and leases at June 30, 2017, compared to 164.98% at December 31, 2016, and 183.01% at June 30, 2016.

Though most credit quality metrics remained relatively stable for the quarter, the level of special mention loans increased during the quarter to $39.0 million, up from $21.2 million a year ago, and up from $19.4 million at March 31, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower milk prices over the past 12 months. Though lower prices have negatively impacted cash flow for this group of borrowers, payments on all of the loans in this portfolio were current as of June 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.43% at June 30, 2017, compared to 8.41% reported for December 31, 2016. Total capital to risk-weighted assets at June 30, 2017 was 12.45%, compared to 12.22% reported at December 31, 2016. Both ratios are down from the same period last year, in large part due to the redemption of $20.5 million of 7% fixed rate Trust Preferred securities in January 2017.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
       
(In thousands, except share and per share data) (Unaudited) As of As of
ASSETS 06/30/2017 12/31/2016
 

Cash and noninterest bearing balances due from banks

$ 76,079 $ 62,074
Interest bearing balances due from banks       2,096         1,880  
Cash and Cash Equivalents 78,175 63,954

 

Available-for-sale securities, at fair value (amortized cost of $1,433,013 at June 30,
2017 and $1,442,724 at December 31, 2016) 1,424,871 1,429,538
Held-to-maturity securities, at amortized cost (fair value of $141,654 at June 30, 2017
and $142,832 at December 31, 2016) 139,994 142,119
Originated loans and leases, net of unearned income and deferred costs and fees (2) 4,070,755 3,863,922
Acquired loans (3) 347,841 394,111
Less: Allowance for loan and lease losses       37,157         35,755  
Net Loans and Leases 4,381,439 4,222,278
 
Federal Home Loan Bank and other stock 45,714 43,133
Bank premises and equipment, net 72,884 70,016
Corporate owned life insurance 79,093 77,905
Goodwill 92,291 92,623
Other intangible assets, net 9,549 11,349
Accrued interest and other assets       91,002         83,841  
Total Assets     $ 6,415,012       $ 6,236,756  
 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,643,292 2,518,318
Time 826,933 870,788
Noninterest bearing       1,280,497         1,236,033  
Total Deposits 4,750,722 4,625,139
 
Federal funds purchased and securities sold under agreements to repurchase 50,360 69,062
Other borrowings 952,035 884,815
Trust preferred debentures 16,605 37,681
Other liabilities       68,375         70,654  
Total Liabilities     $ 5,838,097       $ 5,687,351  
 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
15,225,363 at June 30, 2017; and 15,171,816 at December 31, 2016 1,522 1,517
Additional paid-in capital 362,555 357,414
Retained earnings 249,179 230,182
Accumulated other comprehensive loss (33,624 ) (37,109 )
Treasury stock, at cost – 117,302 shares at June 30, 2017, and 117,997 shares
at December 31, 2016 (4,204 ) (4,051 )
 
Total Tompkins Financial Corporation Shareholders’ Equity 575,428 547,953
Noncontrolling interests       1,487         1,452  
Total Equity     $ 576,915       $ 549,405  
Total Liabilities and Equity     $ 6,415,012       $ 6,236,756  
 
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
      Three Months Ended   Six Months Ended
(In thousands, except per share data) (Unaudited) 06/30/2017   06/30/2016 06/30/2017   06/30/2016
INTEREST AND DIVIDEND INCOME
Loans $ 47,357 $ 41,834 $ 92,308 $ 82,321
Due from banks 4 1 6 3
Trading securities 0 77 0 158
Available-for-sale securities 7,647 7,284 14,969 14,815
Held-to-maturity securities 870 903 1,748 1,814
Federal Home Loan Bank and other stock         464     318       932     615  
Total Interest and Dividend Income         56,342     50,417       109,963     99,726  
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 466 422 907 812
Other deposits 2,482 2,264 4,829 4,473
Federal funds purchased and securities sold under agreements to
repurchase 43 644 151 1,310
Trust preferred debentures 256 594 623 1,183
Other borrowings         2,794     1,586       5,118     3,003  
Total Interest Expense         6,041     5,510       11,628     10,781  
Net Interest Income         50,301     44,907       98,335     88,945  
Less: Provision for loan and lease losses         976     978       1,745     1,833  
Net Interest Income After Provision for Loan and Lease Losses         49,325     43,929       96,590     87,112  
NONINTEREST INCOME
Insurance commissions and fees 7,092 7,517 14,210 15,079
Investment services income 3,891 3,834 7,682 7,620
Service charges on deposit accounts 2,045 2,092 4,212 4,356
Card services income 2,676 2,002 4,685 3,943
Mark-to-market loss on trading securities 0 (60 ) 0 (106 )
Mark-to-market gain on liabilities held at fair value 0 92 0 149
Other income 1,746 1,367 3,901 3,074
Gain on sale of available-for-sale securities         0     240       0     472  
Total Noninterest Income         17,450     17,084       34,690     34,587  
NONINTEREST EXPENSE
Salaries and wages 20,424 19,333 39,937 38,322
Pension and other employee benefits 5,092 4,934 10,851 10,217
Net occupancy expense of premises 3,390 2,999 6,901 6,147
Furniture and fixture expense 1,637 1,577 3,234 3,266
FDIC insurance 617 783 1,155 1,605
Amortization of intangible assets 485 521 978 1,048
Other operating expense         9,923     9,241       19,880     18,289  
Total Noninterest Expenses         41,568     39,388       82,936     78,894  
Income Before Income Tax Expense         25,207     21,625       48,344     42,805  
Income Tax Expense         8,248     6,760       15,637     13,656  
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation         16,959     14,865       32,707     29,149  
Less: Net income attributable to noncontrolling interests         33     32       65     65  
Net Income Attributable to Tompkins Financial Corporation       $ 16,926   $ 14,833     $ 32,642   $ 29,084  
Basic Earnings Per Share       $ 1.11   $ 0.99     $ 2.15   $ 1.93  
Diluted Earnings Per Share       $ 1.11   $ 0.98     $ 2.13   $ 1.91  
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
 
    Quarter Ended
June 30, 2017		   Year to Date Period Ended
June 30, 2017		   Year to Date Period Ended
June 30, 2016
               
Average
Balance
(QTD) 		    Average
Balance
(YTD) 		    Average
Balance
(YTD) 		   
Average
Yield/Rate 		Average
Yield/Rate 		Average
Yield/Rate
(Dollar amounts in thousands)           Interest           Interest           Interest  
ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 1,947 $ 4 0.82 % $ 3,572 $ 6 0.34 % $ 2,015 $ 3 0.30 %
Securities (4)
U.S. Government securities 1,475,530 7,963 2.16 % 1,477,512 15,621 2.13 % 1,461,423 15,549 2.14 %
Trading securities 0 0 0.00 % 0 0 0.00 % 7,084 158 4.49 %
State and municipal (5) 102,488 859 3.37 % 101,598 1,701 3.38 % 98,562 1,678 3.42 %
Other securities (5) 3,603     32     3.56 %     3,608     64     3.58 %     3,664     61     3.35 %
Total securities 1,581,621 8,854 2.25 % 1,582,718 17,386 2.22 % 1,570,733 17,446 2.23 %
FHLBNY and FRB stock 40,731 463 4.56 % 39,426 932 4.77 % 29,708 615 4.16 %
 
Total loans and leases, net of unearned income (5)(6) 4,346,354     48,099     4.44 %     4,305,304     93,772     4.39 %     3,838,211     83,713     4.39 %
Total interest-earning assets 5,970,653     57,420     3.86 %     5,931,020     112,096     3.81 %     5,440,667     101,777     3.76 %
 
Other assets 359,194 354,842 345,662
 

Total assets

6,329,847 6,285,862 5,786,329
                                                   
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market 2,696,258 1,203 0.18 % 2,680,639 2,265 0.17 % 2,532,290 1,938 0.15 %
Time deposits 865,219     1,745     0.81 %     867,571     3,471     0.81 %     879,479     3,347     0.77 %
Total interest-bearing deposits 3,561,477 2,948 0.33 % 3,548,210 5,736 0.33 % 3,411,769 5,285 0.31 %
Federal funds purchased & securities sold under
agreements to repurchase 61,233 43 0.29 % 69,560 151 0.44 % 112,639 1,310 2.34 %
Other borrowings 835,573 2,794 1.34 % 813,477 5,118 1.27 % 543,256 3,003 1.11 %
Trust preferred debentures 16,577     256     6.19 %     20,063     623     6.26 %     37,545     1,183     6.33 %
Total interest-bearing liabilities 4,474,860 6,041 0.54 % 4,451,310 11,628 0.53 % 4,105,209 10,781 0.53 %
 
Noninterest bearing deposits 1,219,803 1,204,272 1,080,375
Accrued expenses and other liabilities 62,443 65,915 64,946
Total liabilities 5,757,106 5,721,497 5,250,530
 
Tompkins Financial Corporation Shareholders’ equity 571,271 562,896 534,314
Noncontrolling interest 1,470 1,469 1,485
Total equity 572,741 564,365 535,799
 
Total liabilities and equity $ 6,329,847 $ 6,285,862 $ 5,786,329
Interest rate spread     3.32 %   3.28 %     3.23 %
Net interest income/margin on earning assets 51,379 3.45 % 100,468 3.42 % 90,996 3.36 %
 
Tax Equivalent Adjustment (1,078 ) (2,133 ) (2,051 )
 
Net interest income per consolidated financial statements           $ 50,301               $ 98,335               $ 88,945      
 
 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

 
                                   
(In thousands, except per share data)   Quarter-Ended   Year-Ended
  Jun-17     Mar-17     Dec-16    

Sep-16

    Jun-16     Dec-16
         
Period End Balance Sheet                                      
Securities     $ 1,564,865     $ 1,569,068     $ 1,571,657     $ 1,515,761     $ 1,564,080     $ 1,571,657  
Originated loans and leases, net of unearned income and deferred costs and fees (2)       4,070,755       3,922,413       3,863,922       3,672,539       3,551,628       3,863,922  
Acquired loans and leases (3)       347,841       375,380       394,111       417,008       426,485       394,111  
Allowance for loan and lease losses       37,157       36,166       35,755       34,112       33,125       35,755  
Total assets       6,415,012       6,280,047       6,236,756       6,102,215       5,924,906       6,236,756  
Total deposits       4,750,722       4,850,585       4,625,139       4,690,300       4,469,721       4,625,139  
Federal funds purchased and securities sold under agreements to repurchase       50,360       70,716       69,062       77,218       97,180       69,062  
Other borrowings       952,035       717,285       884,815       671,000       700,026       884,815  
Trust preferred debentures       16,605       16,562       37,681       37,638       37,595       37,681  
Total common equity       575,428       562,064       547,953       559,640       552,918       547,953  
Total equity       576,915       563,518       549,405       561,190       554,435       549,405  
 
Average Balance Sheet                                      
Average earning assets     $ 5,970,653     $ 5,890,945     $ 5,707,121     $ 5,577,885     $ 5,492,913     $ 5,542,137  
Average assets       6,329,847       6,241,388       6,074,973       5,942,260       5,842,387       5,898,080  
Average interest-bearing liabilities       4,474,860       4,427,501       4,237,126       4,168,879       4,143,031       4,154,374  
Average equity       572,741       555,893       559,106       557,281       543,283       547,057  
 
Share data                                      
Weighted average shares outstanding (basic)       14,944,934       14,900,938       14,862,189       14,829,222       14,798,515       14,812,712  
Weighted average shares outstanding (diluted) (10)       15,066,861       15,042,614       15,014,221       14,965,233       14,917,206       14,936,231  
Period-end shares outstanding       15,189,453       15,181,198       15,135,906       15,055,954       15,035,369       15,135,906  
Common equity book value per share     $ 37.88     $ 37.02     $ 36.20     $ 37.17     $ 36.77     $ 36.20  
Tangible book value per share (Non-GAAP)     $ 31.18     $ 30.28     $ 29.38     $ 30.28     $ 29.82     $ 29.38  
 
Income Statement                                      
Net interest income     $ 50,301     $ 48,034     $ 46,374     $ 45,317     $ 44,907     $ 180,636  
Provision for loan/lease losses       976       769       1,706       782       978       4,321  
Noninterest income       17,450       17,240       16,316       17,905       17,084       68,808  
Noninterest expense       41,568       41,368       39,389       40,324       39,388       158,607  
Income tax expense (10)       8,248       7,388       6,444       6,945       6,760       27,045  
Net income attributable to Tompkins Financial Corporation (10)       16,926       15,717       15,118       15,138       14,833       59,340  
Noncontrolling interests       33       32       33       33       32       131  
Basic earnings per share (8)     $ 1.11     $ 1.04     $ 1.00     $ 1.01     $ 0.99     $ 3.94  
Diluted earnings per share (8) (10)     $ 1.11     $ 1.03     $ 0.99     $ 1.00     $ 0.98     $ 3.91  
 
Nonperforming Assets                                      
Originated nonaccrual loans and leases     $ 14,284     $ 13,786     $ 14,300     $ 11,554     $ 11,008     $ 14,300  
Acquired nonaccrual loans and leases       2,903       3,356       4,741       4,559       4,831       4,741  
Originated loans and leases 90 days past due and accruing       639       0       -       35       89       0  
Troubled debt restructurings not included above       2,980       2,948       2,631       2,148       2,172       2,631  
Total nonperforming loans and leases       20,806       20,090       21,672       18,296       18,100       21,672  
OREO       2,331       2,520       908       1,008       1,001       908  
Total nonperforming assets     $ 23,137     $ 22,610     $ 22,580     $ 19,304     $ 19,101     $ 22,580  
 
 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

   
  Quarter-Ended   Year-Ended

Delinquency - Originated loan and lease portfolio

       Jun-17     Mar-17     Dec-16     Sep-16     Jun-16     Dec-16
Loans and leases 30-89 days past due and
accruing (2)     $ 6,188     $ 5,462     $ 6,694     $ 4,551     $ 4,464     $ 6,694  
Loans and leases 90 days past due and accruing (2)       639       0       -       35       89       0  
Total originated loans and leases past due and accruing (2)       6,827       5,462       6,694       4,586       4,553       6,694  
 
Delinquency - Acquired loan and lease portfolio    
Loans 30-89 days past due and accruing (3)(7)     $ 751     $ 907     $ 2,553     $ 1,069     $ 1,750     $ 2,553  
Loans 90 days or more past due       2,581       2,701       2,557       2,555       1,861       2,557  
Total acquired loans and leases past due and accruing       3,332       3,608       5,110       3,624       3,611       5,110  
Total loans and leases past due and accruing     $ 10,159     $ 9,070     $ 11,804     $ 8,210     $ 8,164     $ 11,804  
 
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period     $ 35,915     $ 35,598     $ 33,956     $ 32,968     $ 31,981     $ 31,312  
Provision for loan and lease losses       846       602       1,419       868       978       4,137  
Net loan and lease (recoveries) charge-offs       (199 )     285       (223 )     (120 )     (9 )     (149 )
Allowance for loan and lease losses (originated 36,960   35,915   35,598   33,956   32,968   35,598  
loan portfolio) - balance at end of period     $   $   $   $   $   $
 
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period     $ 251     $ 157     $ 156     $ 157     $ 549     $ 692  
Provision (credit) for loan and lease losses       130       167       287       (86 )     0       184  
Net loan and lease (recoveries) charge-offs       184       73       286       (85 )     392       719  
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period       197       251       157       156       157       157  
                                       
Total allowance for loan and lease losses     $ 37,157     $ 36,166     $ 35,755     $ 34,112     $ 33,125     $ 35,755  
 
Loan Classification - Originated Portfolio                                      
Special Mention     $ 38,488     $ 18,861     $ 20,485     $ 27,215     $ 20,639     $ 20,485  
Substandard       19,532       20,909       20,316       18,121       16,462       20,316  
Loan Classification - Acquired Portfolio                                      
Special Mention       547       519       526       540       550       526  
Substandard       8,796       9,628       13,141       14,000       13,975       13,141  
Loan Classifications - Total Portfolio                                      
Special Mention       39,035       19,380       21,011       27,755       21,189       21,011  
Substandard       28,328       30,537       33,457       32,121       30,437       33,457  
 
RATIO ANALYSIS                                  
Credit Quality      

Jun-17

   

Mar-17

   

Dec-16

   

Sep-16

   

Jun-16

   

Dec-16

Nonperforming loans and leases/total loans and leases (7)       0.47 %     0.47 %     0.51 %     0.45 %     0.45 %     0.51 %
Nonperforming assets/total assets       0.36 %     0.36 %     0.36 %     0.32 %     0.32 %     0.36 %
Allowance for originated loan and lease losses/total originated loans and leases       0.91 %     0.92 %     0.92 %     0.92 %     0.93 %     0.92 %
Allowance/nonperforming loans and leases       178.59 %     180.02 %     164.98 %     186.45 %     183.01 %     164.98 %
Net loan and lease losses (recoveries) annualized/total average loans and leases       0.00 %     0.03 %     0.01 %     (0.02 %)     0.04 %     0.01 %
 
 

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

 

                               

Quarter-Ended

    

Year-Ended

Capital Adequacy (period-end)

      

Jun-17

   

Mar-17

   

Dec-16

   

Sep-16

   

Jun-16

   

Dec-16

Tier 1 capital / average assets *       8.43 %     8.36 %     8.41 %     8.83 %     8.79 %     8.41 %
Total capital / risk-weighted assets *       12.45 %     12.41 %     12.22 %     12.97 %     12.95 %     12.22 %
 
Profitability                                      
Return on average assets * (10)       1.07 %     1.02 %     0.99 %     1.01 %     1.02 %     1.01 %
Return on average equity * (10)       11.85 %     11.47 %     10.76 %     10.81 %     10.98 %     10.85 %
Net interest margin (TE) *       3.45 %     3.38 %     3.30 %     3.31 %     3.36 %     3.33 %
* Quarterly ratios have been annualized

 

 
NON-GAAP MEASURES
 
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. See "Tompkins Financial Corporation - Summary Financial Data (Unaudited)" tables for Non-GAAP related calculations.
 
 
Non-GAAP Disclosure - Tangible Book Value Per Share
          Quarter-Ended   Year-Ended
          Jun-17     Mar-17     Dec-16     Sep-16     Jun-16     Dec-16
Total common equity       $ 575,428   $ 562,064   $ 547,953   $ 559,640   $ 552,918   $ 547,953
Less: Goodwill and intangibles (9)         101,840     102,326     103,214     103,732     104,636     103,214
Tangible common equity         473,588     459,738     444,739     455,908     448,282     444,739
Ending shares outstanding         15,189,453     15,181,198     15,135,906     15,055,954     15,035,369     15,135,906
Tangible book value per share (Non-GAAP)       $ 31.18   $ 30.28   $ 29.38   $ 30.28   $ 29.82   $ 29.38
             
 
(1) Federal Reserve peer ratio as of March 31, 2017, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans".
(3)"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2016.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans. The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(9) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.
(10) The third quarter, second quarter, and first quarter of 2016 information is revised to reflect the impact of the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting". The early adoption resulted in $847,000, $274,000, $262,000, and $71,000 of excess benefits recognized within "income tax expense" during the three months ended December 31, September 30, June 30, and March 31, 2016, respectively.