Tompkins Financial : Reports Third Quarter Earnings

ITHACA, N.Y.--(BUSINESS WIRE)-- Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.34 for the third quarter of 2019, down 1.5% from the $1.36 per share reported for the same quarter period last year. Net income was $20.2 million for the third quarter of 2019, down from the $20.9 million reported for the same period in 2018.

For the year-to-date period ended September 30, 2019, diluted earnings per share were $3.97, down 3.6% from the $4.12 per share reported for the same period in 2018. Year-to-date net income was $60.6 million for the period ended September 30, 2019, a decrease of $2.8 million from the same period in 2018.

President and CEO, Stephen S. Romaine said 'Despite earnings being down slightly from the prior year, the quarter saw improvement over the second quarter of 2019 in terms of net interest margin, returns on equity and diluted earnings per share. Solid growth in deposits and reduced borrowing costs contributed to the overall improvement from the second quarter, as did higher revenue from insurance and wealth management business.'

SELECTED HIGHLIGHTS FOR THE THIRD QUARTER:

• Total loans of $4.9 billion were up 1.1% over total loans at September 30, 2018
• Total deposits of $5.4 billion reflect an increase of 6.9% over the same period last year
• Net interest margin was 3.43% for the third quarter of 2019, up from 3.34% for the second quarter of 2019, and up from 3.35% for the same quarter last year
• Return on average equity was 12.15% for the third quarter of 2019, up from 11.96% for the second quarter of 2019, and down from 13.89% for the same quarter last year

NET INTEREST INCOME

Net interest income was relatively flat compared to the same quarter and year-to-date periods in 2018. Third quarter 2019 net interest income was $53.2 million, unchanged from the same quarter last year. Net interest income for the third quarter reflected an increase over the second quarter of 2019, driven largely by lower funding costs, which benefited from lower market interest rates, the paydown of borrowings, and growth in noninterest-bearing deposits. The net interest margin for the third quarter of 2019 was 3.43%, compared to 3.34% for the second quarter of 2019, and 3.35% reported for the same period in 2018.

Year-to-date net interest income of $157.4 million was down compared to the $158.6 million reported for the same period last year. Year-to-date yield on interest-earning assets of 4.21% in 2019 was up from 3.96% for the same period last year. Average loans were up $75.9 million, or 1.6% in the first nine months of 2019, compared to the same period in 2018. Average total deposits were up $169.0 million, or 3.5% in the first nine months of 2019, versus the same period in 2018. Average noninterest-bearing deposits for the first nine months of 2019 were up $14.2 million or 1.0% compared to the same period in 2018. The average rate paid on interest-bearing deposits increased 42 basis points in the first nine months of 2019, compared to the same period in 2018.

NONINTEREST INCOME

Noninterest income for the third quarter of 2019 was up 5.0% compared to the same period last year. Noninterest income represented 26.7% of total revenues in the first nine months of 2019, compared to 26.6% in the same period in 2018. Fee income associated with insurance, wealth management, deposit services, and card services were all up over the same quarter last year, with a combined increase of $903,000, or 5.5%.

NONINTEREST EXPENSE

Noninterest expense was $45.7 million for the third quarter of 2019, up $522,000, or 1.2%, over the third quarter of 2018. For the year-to-date period, noninterest expense was $135.9 million, up $2.1 million, or 1.6%, from the same period in 2018. The increase in noninterest expense for both the third quarter and year-to-date periods reflects normal annual increases in salaries and wages. Current quarter other operating expense was reduced by deposit insurance credits received from the FDIC, which included $1.2 million that were applied during the third quarter of 2019.

INCOME TAX EXPENSE

The Company's effective tax rate was 21.3% in the third quarter of 2019, compared to 20.6% for the same period in 2018.

ASSET QUALITY

Asset quality trends remained strong in the third quarter of 2019, despite an increase in nonperforming assets during the third quarter of 2019. Nonperforming assets represented 0.47% of total assets at September 30, 2019, compared to 0.42% at December 31, 2018, and 0.39% at September 30, 2018. Nonperforming asset levels remain below the most recent Federal Reserve Board Peer Group Average¹ of 0.60%.

Provision for loan and lease losses was $1.3 million for the third quarter of 2019, compared to $272,000 for the third quarter ended September 30, 2018. Net charge-offs for the third quarter of 2019 were $739,000 compared to $139,000 reported in the third quarter of 2018.

The Company's allowance for originated loan and lease losses totaled $41.2 million at September 30, 2019, and represented 0.89% of total originated loans and leases at September 30, 2019, up from 0.88% for the most recent prior quarter, and down from 0.91% at September 30, 2018. The total allowance represented 137.46% of total nonperforming loans and leases at September 30, 2019, compared to 163.25% at December 31, 2018, and 169.00% at September 30, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 9.43% at September 30, 2019, improved from the 9.25% reported for the most recent prior quarter ended June 30, 2019, and the 8.89% reported for September 30, 2018.

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.

The statements made herein shall not confer upon any person any rights or remedies of any nature, and shall not be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement, nor to alter any existing at-will employment relationship between the Company and its employees.

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data)	As of	As of
ASSETS	09/30/2019	12/31/2018
Cash and noninterest bearing balances due from banks	$		124,939		$		78,524
Interest bearing balances due from banks		2,488			1,865
Cash and Cash Equivalents		127,427			80,389
Available-for-sale securities, at fair value (amortized cost of $1,140,086 at September 30, 2019 and $1,363,902 at December 31, 2018)		1,142,452			1,332,658
Held-to-maturity securities, at amortized cost (fair value of $142,583 at September 30, 2019 and $139,377 at December 31, 2018)		138,657			140,579
Equity securities, at fair value (amortized cost $1,000 at September 30, 2019 and $1,000 at December 31, 2018)		917			887
Originated loans and leases, net of unearned income and deferred costs and fees		4,628,616			4,568,741
Acquired loans		228,457			265,198
Less: Allowance for loan and lease losses		41,371			43,410
Net Loans and Leases		4,815,702			4,790,529
Federal Home Loan Bank and other stock		24,881			52,262
Bank premises and equipment, net		94,861			97,202
Corporate owned life insurance		82,516			81,928
Goodwill		92,447			92,283
Other intangible assets, net		6,647			7,628
Accrued interest and other assets		101,475			82,091
Total Assets	$		6,627,982		$		6,758,436
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		3,165,622			2,853,190
Time		701,444			637,295
Noninterest bearing		1,502,924			1,398,474
Total Deposits		5,369,990			4,888,959
Federal funds purchased and securities sold under agreements to repurchase		50,541			81,842
Other borrowings		429,000			1,076,075
Trust preferred debentures		16,992			16,863
Other liabilities		101,594			73,826
Total Liabilities	$		5,968,117		$		6,137,565
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,011,660 at September 30, 2019; and 15,348,287 at December 31, 2018		1,501			1,535
Additional paid-in capital		341,654			366,595
Retained earnings		357,165			319,396
Accumulated other comprehensive loss		(36,851	)		(63,165	)
Treasury stock, at cost - 121,880 shares at September 30, 2019, and 122,227 shares at December 31, 2018		(5,111	)		(4,902	)
Total Tompkins Financial Corporation Shareholders' Equity		658,358			619,459
Noncontrolling interests		1,507			1,412
Total Equity	$		659,865		$		620,871
Total Liabilities and Equity	$		6,627,982		$		6,758,436

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)	Three Months Ended	Nine Months Ended
	09/30/2019	09/30/2018	09/30/2019	09/30/2018
INTEREST AND DIVIDEND INCOME
Loans	$		57,621		$		54,769		$		169,685		$		158,419
Due from banks		11			8			31			22
Available-for-sale securities		6,511			7,448			22,055			22,821
Held-to-maturity securities		862			860			2,583			2,572
Federal Home Loan Bank and other stock		770			899			2,442			2,433
Total Interest and Dividend Income		65,775			63,984			196,796			186,267
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		823			563			2,184			1,088
Other deposits		7,582			3,830			20,409			9,699
Federal funds purchased and securities sold under agreements to repurchase		34			35			110			115
Trust preferred debentures		317			318			974			904
Other borrowings		3,862			6,075			15,731			15,897
Total Interest Expense		12,619			10,821			39,408			27,703
Net Interest Income		53,156			53,163			157,388			158,564
Less: Provision for loan and lease losses		1,320			272			2,366			1,884
Net Interest Income After Provision for Loan and Lease Losses		51,836			52,891			155,022			156,680
NONINTEREST INCOME
Insurance commissions and fees		8,517			7,903			24,314			22,684
Investment services income		4,175			4,097			12,166			12,365
Service charges on deposit accounts		2,191			2,088			6,210			6,300
Card services income		2,550			2,442			8,090			7,209
Other income		1,963			2,057			6,247			8,743
Net gain on securities transactions		138			16			434			290
Total Noninterest Income		19,534			18,603			57,461			57,591
NONINTEREST EXPENSE
Salaries and wages		22,960			22,029			66,149			64,404
Other employee benefits		5,821			5,300			17,094			15,859
Net occupancy expense of premises		3,236			3,057			10,095			9,873
Furniture and fixture expense		1,919			1,814			5,894			5,461
Amortization of intangible assets		421			440			1,251			1,334
Other operating expense		11,298			12,493			35,451			36,908
Total Noninterest Expenses		45,655			45,133			135,934			133,839
Income Before Income Tax Expense		25,715			26,361			76,549			80,432
Income Tax Expense		5,478			5,427			15,816			16,939
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation		20,237			20,934			60,733			63,493
Less: Net Income Attributable to Noncontrolling Interests		31			32			95			96
Net Income Attributable to Tompkins Financial Corporation	$		20,206		$		20,902		$		60,638		$		63,397
Basic Earnings Per Share	$		1.34		$		1.37		$		3.99		$		4.15
Diluted Earnings Per Share	$		1.34		$		1.36		$		3.97		$		4.12

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
		Quarter Ended	YTD Period Ended	YTD Period Ended
			September 30, 2019		September 30, 2019		September 30, 2018
			Average				Average				Average
			Balance		Average		Balance		Average		Balance		Average
(Dollar amounts in thousands)		(QTD)	Interest	Yield/ Rate		(YTD)	Interest	Yield/ Rate		(YTD)	Interest	Yield/ Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	2,908		$	11		1.50	%	$	2,460	$	31		1.68	%	$	2,121	$	22		1.39	%
Securities (4)
U.S. Government securities		1,219,318		6,822	2.22	%		1,338,807	22,990	2.30	%		1,438,322	23,763	2.21	%
State and municipal (5)		91,675		639	2.76	%		93,131	1,903	2.73	%		97,556	1,898	2.60	%
Other securities (5)		3,419		39	4.52	%		3,417	120	4.70	%		3,516	113	4.30	%
Total securities		1,314,412		7,500	2.26	%		1,435,355	25,013	2.33	%		1,539,394	25,774	2.24	%
FHLBNY and FRB stock		33,359		770	9.16	%		42,634	2,442	7.66	%		52,802	2,433	6.16	%
Total loans and leases, net of unearned income (5)(6)		4,852,399		57,904	4.73	%		4,816,140	170,540	4.73	%		4,740,257	159,398	4.50	%
Total interest-earning assets		6,203,078		66,185	4.23	%		6,296,589	198,026	4.21	%		6,334,574	187,627	3.96	%
Other assets		418,334					405,358				351,949
Total assets	$	6,621,412				$	6,701,947			$	6,686,523
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings & money market	$	2,998,574		5,423	0.72	%	$	2,962,236	14,865	0.67	%	$	2,806,119	6,118	0.29	%
Time deposits		694,822		2,982		1.70	%		670,570		7,728		1.54	%		671,888		4,669		0.93	%
Total interest-bearing deposits		3,693,396		8,405	0.90	%		3,632,806	22,593	0.83	%		3,478,007	10,787	0.41	%
Federal funds purchased & securities sold under
agreements to repurchase		57,607		34	0.23	%		61,482	110	0.24	%		62,956	115	0.24	%
Other borrowings		647,112		3,862	2.37	%		861,930	15,731	2.44	%		1,113,120	15,897	1.91	%
Trust preferred debentures		16,964		318	7.44	%		16,921	974	7.70	%		16,749	904	7.22	%
Total interest-bearing liabilities		4,415,079		12,619	1.13	%		4,573,139	39,408	1.15	%		4,670,832	27,703	0.79	%
Non-interest bearing deposits		1,445,051					1,380,399				1,366,219
Accrued expenses and other liabilities		101,632					101,483				63,682
Total liabilities		5,961,762					6,055,021				6,100,733
Tompkins Financial Corporation Shareholders' equity		658,159					645,466				584,331
Noncontrolling interest		1,491					1,460				1,459
Total equity		659,650					646,926				585,790
Total liabilities and equity	$	6,621,412				$	6,701,947			$	6,686,523
Interest rate spread				3.10	%				3.05	%				3.17	%
Net interest income/margin on earning assets			53,566	3.43	%			158,618	3.37	%			159,924	3.38	%
Tax equivalent adjustments			(410)				(1,230)				(1,360)
Net interest income per consolidated financial statements			$	53,156					$	157,388					$	158,564

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)
	Quarter-Ended	Year-Ended
Period End Balance Sheet		Sep-19		Jun-19		Mar-19		Dec-18		Sep-18		Dec-18
Securities	$	1,282,026		$	1,330,719		$	1,484,151		$	1,474,124		$	1,452,788		$	1,474,124
Originated loans and leases, net of unearned income and deferred costs and fees (2)		4,628,616			4,608,483			4,532,803			4,568,741			4,531,241			4,568,741
Acquired loans and leases (3)		228,457			247,319			256,897			265,198			271,468			265,198
Allowance for loan and lease losses		41,371			40,790			40,328			43,410			41,358			43,410
Total assets		6,627,982			6,654,390			6,738,719			6,758,436			6,746,960			6,758,436
Total deposits		5,369,990			4,988,897			4,989,925			4,888,959			5,025,082			4,888,959
Federal funds purchased and securities sold under agreements to repurchase		50,541			63,978			66,918			81,842			52,875			81,842
Other borrowings		429,000			824,562			923,427			1,076,075			988,515			1,076,075
Trust preferred debentures		16,992			16,949			16,906			16,863			16,820			16,863
Total common equity		658,358			656,201			645,823			619,459			597,636			619,459
Total equity		659,865			657,677			647,267			620,871			599,144			620,871

Average Balance Sheet
Average earning assets	$	6,203,078		$	6,337,983		$	6,350,325		$	6,364,113		$	6,356,781		$	6,342,019
Average assets		6,621,412			6,742,409			6,743,360			6,710,944			6,716,452			6,692,678
Average interest-bearing liabilities		4,415,079			4,638,249			4,668,875			4,606,536			4,644,533			4,654,625
Average equity		659,650			650,079			630,731			606,238			597,211			590,944

Share data
Weighted average shares outstanding (basic)	14,827,114		15,019,710		15,060,175		15,057,673		15,047,405		15,039,229
Weighted average shares outstanding (diluted)	14,887,626		15,085,945		15,136,523		15,135,750		15,144,491		15,132,257
Period-end shares outstanding	14,975,750		15,160,719		15,314,078		15,312,377		15,277,915		15,312,377
Common equity book value per share	$	43.96		$	43.28		$	42.17		$	40.45		$	39.12		$	40.45
Tangible book value per share (Non-GAAP)(10)	$	37.40		$	36.77		$	35.73		$	33.98		$	32.60		$	33.98

Income Statement
Net interest income	$	53,156		$	52,318		$	51,914		$	53,236		$	53,163		$	211,800
Provision for loan/lease losses		1,320			601			445			2,058			272			3,942
Noninterest income		19,534			18,520			19,407			19,858			18,603			77,449
Noninterest expense		45,655			46,070			44,209			47,228			45,133			181,067
Income tax expense		5,478			4,743			5,595			4,866			5,427			21,805
Net income attributable to Tompkins Financial Corporation		20,206			19,392			21,040			18,911			20,902			82,308
Noncontrolling interests		31			32			32			31			32			127
Basic earnings per share (8)	$	1.34		$	1.27		$	1.37		$	1.24		$	1.37		$	5.39
Diluted earnings per share (8)	$	1.34		$	1.27		$	1.37		$	1.23		$	1.36		$	5.35

Nonperforming Assets
Originated nonaccrual loans and leases	$	21,404		$	16,543		$	15,165		$	19,340		$	17,518		$	19,340
Acquired nonaccrual loans and leases		2,164			2,363			2,579			2,856			2,659			2,856
Originated loans and leases 90 days past due and accruing		0			0			0			0			0			0
Troubled debt restructuring not included above		6,528			4,889			5,234			4,395			4,295			4,395
Total nonperforming loans and leases		30,096			23,795			22,978			26,591			24,472			26,591
OREO		888			2,229			1,595			1,595			1,870			1,595
Total nonperforming assets	$	30,984		$	26,024		$	24,573		$	28,186		$	26,342		$	28,186

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

		Quarter-Ended	Year-Ended
Delinquency - Originated loan and lease portfolio		Sep-19		Jun-19		Mar-19		Dec-18		Sep-18		Dec-18
Loans and leases 30-89 days past due and
accruing (2)	$	3,287		$	3,883		$	4,193		$	7,838		$	6,454		$	7,838
Loans and leases 90 days past due and accruing (2)		0			0			0			0			0			0
Total originated loans and leases past due and accruing (2)		3,287			3,883			4,193			7,838			6,454			7,838

Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7)	$	232		$	493		$	474		$	67		$	1,109		$	67
Loans 90 days or more past due		1,219			1,229			1,218			1,316			1,420			1,316
Total acquired loans and leases past due and accruing		1,451			1,722			1,692			1,383			2,529			1,383
Total loans and leases past due and accruing	$	4,738		$	5,605		$	5,885		$	9,221		$	8,983		$	9,221

Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	40,689		$	40,245		$	43,321		$	41,289		$	41,111		$	39,686
Provision for loan and lease losses		1,245			590			480			2,046			208			3,897
Net loan and lease (recoveries) charge-offs		703			146			3,556			14			30			262
Allowance for loan and lease losses (originated
loan portfolio) - balance at end of period	$	41,231		$	40,689		$	40,245		$	43,321		$	41,289		$	43,321

Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	101		$	83		$	89		$	69		$	114		$	85
Provision (credit) for loan and lease losses		75			11			(35	)		12			64			45
Net loan and lease (recoveries) charge-offs		36			(7	)		(29	)		(8	)		109			41
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		140			101			83			89			69			89
Total allowance for loan and lease losses	$	41,371		$	40,791		$	40,328		$	43,410		$	41,358		$	43,410

Loan Classification - Originated Portfolio
Special Mention	$	41,314		$	36,619		$	33,689		$	28,074		$	34,245		$	28,074
Substandard		58,873			44,770			35,895			43,963			49,597			43,963
Loan Classification - Acquired Portfolio
Special Mention		261			265			270			452			465			452
Substandard		2,809			2,857			2,830			2,914			3,041			2,914
Loan Classifications - Total Portfolio
Special Mention		41,575			36,884			33,959			28,526			34,710			28,526
Substandard		61,682			47,627			38,725			46,877			52,638			46,877

Ratio Analysis

Credit Quality
Nonperforming loans and leases/total loans and leases (7)		0.62	%		0.49	%		0.48	%		0.55	%		0.51	%		0.55	%
Nonperforming assets/total assets		0.47	%		0.39	%		0.36	%		0.42	%		0.39	%		0.42	%
Allowance for originated loan and lease losses/total originated loans and leases		0.89	%		0.88	%		0.89	%		0.95	%		0.91	%		0.95	%
Allowance/nonperforming loans and leases		137.46	%		171.42	%		175.51	%		163.25	%		169.00	%		163.25	%
Net loan and lease losses annualized/total average loans and leases		0.06	%		0.01	%		0.30	%		0.00	%		0.01	%		0.01	%

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Year-Ended
Capital Adequacy (period-end)		Sep-19		Jun-19		Mar-19		Dec-18		Sep-18		Dec-18
Tier 1 Capital (to average assets)		9.43	%		9.25	%		9.24	%		9.05	%		8.89	%		9.05	%
Common Equity Tier 1 Capital (to risk-weighted assets)		12.14	%		12.13	%		12.19	%		11.84	%		11.65	%		11.84	%

Profitability
Return on average assets *		1.21	%		1.15	%		1.27	%		1.12	%		1.23	%		1.23	%
Return on average equity *		12.15	%		11.96	%		13.53	%		12.38	%		13.89	%		13.93	%
Net interest margin (TE) *		3.43	%		3.34	%		3.34	%		3.34	%		3.35	%		3.37	%
* 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 below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.

Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)
		Quarter-Ended	Year-Ended
		Sep-19		Jun-19		Mar-19		Dec-18		Sep-18		Dec-18
Net income available to common shareholders	$		20,206	$		19,392	$		21,040	$		18,911	$		20,902	$		82,308
Income attributable to unvested stock-based compensation awards		317		306		349		291		318		1,315
Net earnings allocated to common shareholders (GAAP)		19,889		19,086		20,691		18,620		20,584		80,993
Weighted average shares outstanding (diluted)		14,887,626		15,085,945		15,136,523		15,135,750		15,144,491		15,132,257
Diluted earnings per share (8)	$		1.34	$		1.27	$		1.37	$		1.23	$		1.36	$		5.35
Adjustments for non-operating income and expense:
Gain on sale of real estate, net of tax		0		0		0		0		0		2,227
Write-down of impaired leases, net of tax		0		0		0		0		(388)		(1,915)
Adjusted net income (Non-GAAP) (10)		19,889		19,086		20,691		18,620		20,972		80,681
Weighted average shares outstanding (diluted)		14,887,626		15,085,945		15,136,523		15,135,750		15,144,491		15,132,257
Adjusted diluted earnings per share (Non-GAAP) (10)	$		1.34	$		1.27	$		1.37	$		1.23	$		1.38	$		5.33

Reconciliation of Common Equity Book Value Per Share (GAAP) to Tangible Book Value Per Share (non-GAAP)
Total common equity	$		658,358	$		656,201	$		645,823	$		619,459	$		597,636	$		619,459
Less: Goodwill and intangibles (9)		98,277		98,698		98,694		99,106		99,543		99,106
Tangible common equity (Non-GAAP) (10)		560,081		557,503		547,129		520,353		498,093		520,353
Ending shares outstanding		14,975,750		15,160,719		15,314,078		15,312,377		15,277,915		15,312,377
Tangible book value per share (Non-GAAP) (10)	$		37.40	$		36.77	$		35.73	$		33.98	$		32.60	$		33.98

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

Reconciliation of Year to Date Common Equity Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)
	Sep-19	Sep-18
Net income available to common shareholders	$	60,638	$		63,397
Income attributable to unvested stock-based compensation awards		972		1,024
Net earnings allocated to common shareholders (GAAP)		59,666		62,373
Weighted average shares outstanding (diluted)		15,035,780		15,131,018
Diluted earnings per share (8)	$	3.97	$		4.12
Adjustments for non-operating income and expense:
Gain on sale of real estate, net of tax		0		2,227
Write-down of impaired leases, net of tax		0		(1,915	)
Adjusted net income (Non-GAAP) (10)		59,666		62,061
Weighted average shares outstanding (diluted)		15,035,780		15,131,018
Adjusted diluted earnings per share (Non-GAAP) (10)	$	3.97	$			4.10

(1)	Federal Reserve peer ratio as of June 30, 2019, 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, 2018.
(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)	See 'Non-GAAP Measures' above for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measure presented in accordance with GAAP.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191018005102/en/

Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation [phone]

Source: Tompkins Financial Corporation