EX-99.1 2 ex99-1.htm PRESS RELEASE

Tompkins Financial Corporation 8-K

EXHIBIT 99.1

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888)503-5753

For Immediate Release

Friday, October 27, 2017

Tompkins Financial Corporation Reports Record Third Quarter and Year-to-Date Earnings

ITHACA, NY – Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported diluted earnings per share of $1.14 for the third quarter of 2017, which represents an increase of 14.0% compared to the $1.00 reported in the third quarter of 2016. Net income for the third quarter of 2017 was $17.4 million, up 14.9% compared to the $15.1 million reported in the third quarter of 2016.

Year-to-date diluted earnings per share of $3.27 for the first nine months of 2017 represents an increase of 12.0% over the same period in 2016. Year-to-date net income was $50.0 million through the first nine months of 2017, an increase of 13.2% over the same period in 2016.

President and CEO, Stephen S. Romaine said “We are extremely pleased with our earnings performance as the reported results reflect the best third quarter and best year-to-date performance through the first nine months of any year in our Company’s history. A key growth driver for the quarter and year-to-date periods has been the improvement in net interest income, which has benefited from solid growth trends in loans and deposits.”

Selected highlights for third quarter AND YEAR TO DATE:

●

Best earnings performance for the first nine months of any year in our Company’s history. Also, the best third quarter earnings performance in our Company’s history.

●

Net interest income for the quarter was up 12.5% compared to the third quarter of 2016, and up year-to-date 11.2% compared to the same period in 2016. 

●

Net interest margin of 3.40% for the quarter and 3.41% for the year-to-date, are both improved from the same periods in 2016.

●

Total loans of $4.5 billion were up 9.8% over the same period in 2016; and are up 5.5% over December 31, 2016.

●

Total deposits of $4.9 billion reflect an increase of 5.4% over the same period last year, and are up 6.9% from December 31, 2016.

●

Third quarter return on average equity was 11.77% compared to 10.81% for the same quarter last year.

1

NET INTEREST INCOME

Net interest income of $51.0 million for the third quarter of 2017 increased by $5.7 million, or 12.5% compared to the same period in 2016. For the year-to-date period, net interest income was $149.3 million, up $15.1 million, or 11.2% from the same nine-month period in 2016.

Growth in net interest income for the third quarter of 2017 over the third quarter of 2016 was largely driven by $430.1 million of growth in average loans over the third quarter of 2016, an increase of 10.7%. Average deposits increased $249.1 million, or 5.5% compared to the same period in 2016. Included in the increase in average deposits was a $165.7 million or 14.4% increase in noninterest bearing deposits. For the third quarter of 2017, net interest margin measured 3.40%, compared to 3.45% for the quarter ended June 30, 2017, and 3.31% in the third quarter of 2016.

NONINTEREST INCOME

Noninterest income represented 25.2% of total revenues in the third quarter of 2017, compared to 28.3% in the same period in 2016, and 25.8% for the most recent prior quarter. Noninterest income of $17.2 million was down $703,000, or 3.9% compared to the same period last year. The third quarter of 2017 included a loss on sales of available for sale securities of approximately $423,000 compared to a gain of $455,000 reported in the third quarter of 2016. Sales of available-for-sale securities are generally the result of general investment security portfolio maintenance and interest rate risk management.

Year-to-date noninterest income of $51.9 million was in line with the previous year noninterest income of $52.5 million.

NONINTEREST EXPENSE

Noninterest expense was $41.9 million for the third quarter of 2017, up $1.6 million, or 3.9%, over the third quarter of 2016. For the year-to-date period, noninterest expense was $124.8 million, up $5.6 million, or 4.7%, from the same period in 2016. The increase in noninterest expense for both the third quarter and year-to-date periods was mainly due to higher salaries and benefits. Expenses for the quarter also included $345,000 of expense related to OREO properties held by the bank.

2

ASSET QUALITY

Asset quality trends remained strong in the third quarter of 2017. Nonperforming assets represented 0.37% of total assets at September 30, 2017, compared to 0.36% at December 31, 2016, and 0.32% at September 30, 2016. Though credit quality metrics showed some modest deterioration during the quarter, overall credit quality remains strong and compares favorably to our peers. Nonperforming asset levels as a percentage of total assets of 0.37% compares favorably to the most recent Federal Reserve Board Peer Group Average1 of 0.51%.

Provision for loan and lease losses was $402,000 for the third quarter of 2017, down $380,000 compared to the third quarter of 2016. Net recoveries for the third quarter of 2017 were $479,000 compared to net recoveries of $205,000 reported in the third quarter of 2016.

The Company’s allowance for originated loan and lease losses totaled $37.9 million at September 30, 2017, and represented 0.91% of total originated loans and leases at September 30, 2017, relatively unchanged from the most recent prior quarter and the third quarter of 2016. The total allowance represented 170.12% of total nonperforming loans and leases at September 30, 2017, compared to 164.98% at December 31, 2016, and 186.45% at September 30, 2016.

The level of Special Mention originated loans increased during the quarter to $50.4 million, up from $27.2 million a year ago, and up from $38.5 million at June 30, 2017. The increase is largely related to the Company’s agricultural portfolio that has been negatively impacted by lower average milk prices in 2016, which had an unfavorable impact on operations of our agricultural customers. Milk prices have rebounded in 2017. As of September 30, 2017, payments on all loans in our agricultural portfolio were current. Of the $50.4 million of loans currently listed as Special Mention, 94.3% of the dollar amount outstanding was current on their payments as of September 30, 2017.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of Tier 1 capital to average assets was 8.50% at September 30, 2017, compared to 8.41% reported at December 31, 2016. Total capital to risk-weighted assets at September 30, 2017 was 12.52%, compared to 12.22% 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.

3

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.

4

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) (Unaudited)				As of		As of
ASSETS				09/30/2017		12/31/2016
Cash and noninterest bearing balances due from banks			$	122,213	$	62,074
Interest bearing balances due from banks				7,199		1,880
	Cash and Cash Equivalents			129,412		63,954
Available-for-sale securities, at fair value (amortized cost of $1,413,238 at September 30,
	2017 and $1,442,724 at December 31, 2016)			1,406,231		1,429,538
Held-to-maturity securities, at amortized cost (fair value of $142,007 at September 30, 2017
	and $142,832 at December 31, 2016)			139,968		142,119
Originated loans and leases, net of unearned income and deferred costs and fees (2)				4,167,254		3,863,922
Acquired loans (3)				323,259		394,111
Less:  Allowance for loan and lease losses				38,038		35,755
	Net Loans and Leases			4,452,475		4,222,278
Federal Home Loan Bank and other stock				40,310		43,133
Bank premises and equipment, net				79,940		70,016
Corporate owned life insurance				79,548		77,905
Goodwill				92,291		92,623
Other intangible assets, net				9,750		11,349
Accrued interest and other assets				94,135		83,841
	Total Assets		$	6,524,060	$	6,236,756
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,747,345		2,518,318
	Time			786,301		870,788
	Noninterest bearing			1,410,298		1,236,033
	Total Deposits			4,943,944		4,625,139
Federal funds purchased and securities sold under agreements to repurchase				73,874		69,062
Other borrowings				834,574		884,815
Trust preferred debentures				16,648		37,681
Other liabilities				65,152		70,654
	Total Liabilities		$	5,934,192	$	5,687,351
EQUITY
Tompkins Financial Corporation shareholders’ equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		15,238,354 at September 30, 2017; and 15,171,816 at December 31, 2016		1,524		1,517
	Additional paid-in capital			364,150		357,414
	Retained earnings			259,738		230,182
	Accumulated other comprehensive loss			(32,715)		(37,109)
	Treasury stock, at cost – 119,142 shares at September 30, 2017, and 117,997 shares
		at December 31, 2016		(4,348)		(4,051)
	Total Tompkins Financial Corporation Shareholders’ Equity			588,349		547,953
Noncontrolling interests				1,519		1,452
	Total Equity		$	589,868	$	549,405
	Total Liabilities and Equity		$	6,524,060	$	6,236,756

5

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended				Nine Months Ended
(In thousands, except per share data) (Unaudited)			09/30/2017		09/30/2016		09/30/2017		09/30/2016
INTEREST AND DIVIDEND INCOME
Loans		$	48,949	$	43,057	$	141,257	$	125,378
Due from banks			9		2		15		5
Trading securities			0		62		0		220
Available-for-sale securities			7,415		6,683		22,384		21,498
Held-to-maturity securities			865		898		2,613		2,712
Federal Home Loan Bank and other stock			534		375		1,466		990
Total Interest and Dividend Income			57,772		51,077		167,735		150,803
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more			457		402		1,364		1,214
Other deposits			2,679		2,291		7,508		6,764
Federal funds purchased and securities sold under agreements to
repurchase			44		630		195		1,940
Trust preferred debentures			265		600		888		1,783
Other borrowings			3,327		1,837		8,445		4,840
Total Interest Expense			6,772		5,760		18,400		16,541
Net Interest Income			51,000		45,317		149,335		134,262
Less:  Provision for loan and lease losses			402		782		2,147		2,615
Net Interest Income After Provision for Loan and Lease Losses			50,598		44,535		147,188		131,647
NONINTEREST INCOME
Insurance commissions and fees			7,682		7,729		21,892		22,808
Investment services income			3,862		3,735		11,544		11,355
Service charges on deposit accounts			2,125		2,203		6,337		6,559
Card services income			2,190		2,037		6,875		5,980
Mark-to-market loss on trading securities			0		(76)		0		(182)
Mark-to-market gain on liabilities held at fair value			0		77		0		227
Other income			1,766		1,745		5,667		4,819
(Loss)/gain on sale of available-for-sale securities			(423)		455		(423)		926
Total Noninterest Income			17,202		17,905		51,892		52,492
NONINTEREST EXPENSE
Salaries and wages			20,931		19,801		60,868		58,123
Pension and other employee benefits			5,344		5,218		16,195		15,435
Net occupancy expense of premises			3,064		3,046		9,965		9,193
Furniture and fixture expense			1,585		1,707		4,819		4,973
FDIC insurance			620		783		1,775		2,388
Amortization of intangible assets			481		524		1,459		1,572
Other operating expense			9,858		9,245		29,738		27,534
Total Noninterest Expenses			41,883		40,324		124,819		119,218
Income Before Income Tax Expense			25,917		22,116		74,261		64,921
Income Tax Expense			8,491		6,945		24,127		20,601
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			17,426		15,171		50,134		44,320
Less:  Net income attributable to noncontrolling interests			32		33		97		98
Net Income Attributable to Tompkins Financial Corporation		$	17,394	$	15,138	$	50,037	$	44,222
Basic Earnings Per Share		$	1.14	$	1.01	$	3.30	$	2.94
Diluted Earnings Per Share		$	1.14	$	1.00	$	3.27	$	2.92

6

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				September 30, 2017					September 30, 2017					September 30, 2016
				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		$	3,498	$	9	1.02%	$	3,547	$	15	0.57%	$	1,968	$	5	0.34%
	Securities (4)
		U.S. Government securities		1,474,389		7,730	2.08%		1,476,459		23,352	2.11%		1,447,450		22,608	2.09%
		Trading securities		0		0	0.00%		0		0	0.00%		6,536		220	4.50%
		State and municipal (5)		100,060		851	3.37%		101,080		2,552	3.38%		97,906		2,488	3.39%
		Other securities (5)		3,592		33	3.64%		3,602		96	3.56%		3,653		91	3.33%
		Total securities		1,578,041		8,614	2.17%		1,581,141		26,000	2.20%		1,555,545		25,407	2.18%
	FHLBNY and FRB stock			45,994		534	4.61%		41,639		1,466	4.71%		31,767		990	4.16%
	Total loans and leases, net of unearned income (5)(6)			4,444,736		49,725	4.44%		4,352,292		143,497	4.41%		3,897,461		127,484	4.37%
	Total interest-earning assets			6,072,269		58,882	3.85%		5,978,619		170,978	3.82%		5,486,741		153,886	3.75%
Other assets				358,228					355,983					351,944
	Total assets			6,430,497					6,334,602					5,838,685
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,632,467		1,355	0.20%		2,664,405		3,620	0.18%		2,514,159		2,958	0.16%
		Time deposits		800,769		1,781	0.88%		845,058		5,252	0.83%		876,947		5,020	0.76%
		Total interest-bearing deposits		3,433,236		3,136	0.36%		3,509,463		8,872	0.34%		3,391,106		7,978	0.31%
Federal funds purchased & securities sold under
		agreements to repurchase		58,397		44	0.30%		65,798		195	0.40%		108,189		1,940	2.40%
Other borrowings				955,353		3,327	1.38%		861,289		8,445	1.31%		589,726		4,840	1.10%
Trust preferred debentures				16,620		265	6.33%		18,903		888	6.28%		37,567		1,783	6.34%
	Total interest-bearing liabilities			4,463,606		6,772	0.60%		4,455,453		18,400	0.55%		4,126,588		16,541	0.54%
Noninterest bearing deposits				1,313,773					1,241,173					1,103,108
Accrued expenses and other liabilities				66,447					66,094					65,978
	Total liabilities			5,843,826					5,762,720					5,295,674
Tompkins Financial Corporation Shareholders’ equity				585,171					570,403					541,510
Noncontrolling interest				1,500					1,479					1,501
	Total equity			586,671					571,882					543,011
	Total liabilities and equity		$	6,430,497				$	6,334,602				$	5,838,685
Interest rate spread							3.25%					3.27%					3.21%
	Net interest income/margin on earning assets					52,110	3.40%				152,578	3.41%				137,345	3.34%
Tax Equivalent Adjustment						(1,110)					(3,243)					(3,083)
	Net interest income per consolidated financial statements				$	51,000				$	149,335				$	134,262

7

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Sep-17		Jun-17		Mar-17		Dec-16		Sep-16		Dec-16
Period End Balance Sheet
Securities	$	1,546,199	$	1,564,865	$	1,569,068	$	1,571,657	$	1,515,761	$	1,571,657
Originated loans and leases, net of unearned income and deferred costs and fees (2)		4,167,254		4,070,755		3,922,413		3,863,922		3,672,539		3,863,922
Acquired loans and leases (3)		323,259		347,841		375,380		394,111		417,008		394,111
Allowance for  loan and lease losses		38,038		37,157		36,166		35,755		34,112		35,755
Total assets		6,524,060		6,415,012		6,280,047		6,236,756		6,102,215		6,236,756
Total deposits		4,943,944		4,750,722		4,850,585		4,625,139		4,690,300		4,625,139
Federal funds purchased and securities sold under agreements to repurchase		73,874		50,360		70,716		69,062		77,218		69,062
Other borrowings		834,574		952,035		717,285		884,815		671,000		884,815
Trust preferred debentures		16,648		16,605		16,562		37,681		37,638		37,681
Total common equity		588,349		575,428		562,064		547,953		559,640		547,953
Total equity		589,868		576,915		563,518		549,405		561,190		549,405
Average Balance Sheet
Average earning assets	$	6,072,269	$	5,970,653	$	5,890,945	$	5,707,121	$	5,577,885	$	5,542,137
Average assets		6,430,497		6,329,847		6,241,388		6,074,973		5,942,260		5,898,080
Average interest-bearing liabilities		4,463,606		4,474,860		4,427,501		4,237,126		4,168,879		4,154,374
Average equity		586,671		572,741		555,893		559,106		557,281		547,057
Share data
Weighted average shares outstanding (basic)		14,966,231		14,944,934		14,900,938		14,862,189		14,829,222		14,812,712
Weighted average shares outstanding (diluted) (10)		15,078,555		15,066,861		15,042,614		15,014,221		14,965,233		14,936,231
Period-end shares outstanding		15,202,444		15,189,453		15,181,198		15,135,906		15,055,954		15,135,906
Common equity book value per share	$	38.70	$	37.88	$	37.02	$	36.20	$	37.17	$	36.20
Tangible book value per share (Non-GAAP)	$	32.03	$	31.18	$	30.28	$	29.38	$	30.28	$	29.38
Income Statement
Net interest income	$	51,000	$	50,301	$	48,034	$	46,374	$	45,317	$	180,636
Provision for loan/lease losses		402		976		769		1,706		782		4,321
Noninterest income		17,202		17,450		17,240		16,316		17,905		68,808
Noninterest expense		41,883		41,568		41,368		39,389		40,324		158,607
Income tax expense (10)		8,491		8,248		7,388		6,444		6,945		27,045
Net income attributable to Tompkins Financial Corporation (10)		17,394		16,926		15,717		15,118		15,138		59,340
Noncontrolling interests		32		33		32		33		33		131
Basic earnings per share (8)	$	1.14	$	1.11	$	1.04	$	1.00	$	1.01	$	3.94
Diluted earnings per share (8) (10)	$	1.14	$	1.11	$	1.03	$	0.99	$	1.00	$	3.91
Nonperforming Assets
Originated nonaccrual loans and leases	$	15,667	$	14,284	$	13,786	$	14,300	$	11,554	$	14,300
Acquired nonaccrual loans and leases		3,152		2,903		3,356		4,741		4,559		4,741
Originated loans and leases 90 days past due and accruing		0		639		0		0		35		0
Troubled debt restructurings not included above		3,541		2,980		2,948		2,631		2,148		2,631
Total nonperforming loans and leases		22,360		20,806		20,090		21,672		18,296		21,672
OREO		2,030		2,331		2,520		908		1,008		908
Total nonperforming assets	$	24,390	$	23,137	$	22,610	$	22,580	$	19,304	$	22,580

8

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Sep-17		Jun-17		Mar-17		Dec-16		Sep-16		Dec-16
Loans and leases 30-89 days past due and accruing (2)	$	5,567	$	6,188	$	5,462	$	6,694	$	4,551	$	6,694
Loans and leases 90 days past due and accruing (2)		0		639		0		0		35		0
Total originated loans and leases past due and accruing (2)		5,567		6,827		5,462		6,694		4,586		6,694
Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7)	$	2,857	$	751	$	907	$	2,553	$	1,069	$	2,553
Loans 90 days or more past due		1,306		2,581		2,701		2,557		2,555		2,557
Total acquired loans and leases past due and accruing		4,163		3,332		3,608		5,110		3,624		5,110
Total loans and leases past due and accruing	$	9,730	$	10,159	$	9,070	$	11,804	$	8,210	$	11,804
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	36,960	$	35,915	$	35,598	$	33,956	$	32,968	$	31,312
Provision for loan and lease losses		931		846		602		1,419		868		4,137
Net loan and lease (recoveries) charge-offs		(12)		(199)		285		(223)		(120)		(149)
Allowance for loan and lease losses (originated		37,903		36,960		35,915		35,598		33,956		35,598
loan portfolio) - balance at end of period	$		$		$		$		$		$
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	197	$	251	$	157	$	156	$	157	$	692
Provision (credit) for loan and lease losses		(529)		130		167		287		(86)		184
Net loan and lease (recoveries) charge-offs		(467)		184		73		286		(85)		719
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		135		197		251		157		156		157
Total allowance for loan and lease losses	$	38,038	$	37,157	$	36,166	$	35,755	$	34,112	$	35,755
Loan Classification - Originated Portfolio
Special Mention	$	50,423	$	38,488	$	18,861	$	20,485	$	27,215	$	20,485
Substandard		20,532		19,532		20,909		20,316		18,121		20,316
Loan Classification - Acquired Portfolio
Special Mention		539		547		519		526		540		526
Substandard		8,193		8,796		9,628		13,141		14,000		13,141
Loan Classifications - Total Portfolio
Special Mention		50,962		39,035		19,380		21,011		27,755		21,011
Substandard		28,725		28,328		30,537		33,457		32,121		33,457
RATIO ANALYSIS
Credit Quality		Sep-17		Jun-17		Mar-17		Dec-16		Sep-16		Dec-16
Nonperforming loans and leases/total loans and leases (7)		0.50%		0.47%		0.47%		0.51%		0.45%		0.51%
Nonperforming assets/total assets		0.37%		0.36%		0.36%		0.36%		0.32%		0.36%
Allowance for originated loan and lease losses/total originated loans and leases		0.91%		0.91%		0.92%		0.92%		0.92%		0.92%
Allowance/nonperforming loans and leases		170.12%		178.59%		180.02%		164.98%		186.45%		164.98%
Net loan and lease losses (recoveries) annualized/total average loans and leases		(0.04%)		0.00%		0.03%		0.01%		(0.02%)		0.01%

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Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
		Quarter-Ended									Year-Ended
Capital Adequacy (period-end)		Sep-17		Jun-17		Mar-17		Dec-16		Sep-16		Dec-16
Tier 1 capital / average assets *		8.50%		8.43%		8.36%		8.41%		8.83%		8.41%
Total capital / risk-weighted assets *		12.52%		12.45%		12.41%		12.22%		12.97%		12.22%
Profitability
Return on average assets * (10)		1.07%		1.07%		1.02%		0.99%		1.01%		1.01%
Return on average equity * (10)		11.77%		11.85%		11.47%		10.76%		10.81%		10.85%
Net interest margin (TE) *		3.40%		3.45%		3.38%		3.30%		3.31%		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
		Sep-17		Jun-17		Mar-17		Dec-16		Sep-16		Dec-16
Total common equity	$	588,349	$	575,428	$	562,064	$	547,953	$	559,640	$	547,953
Less:  Goodwill and intangibles (9)		101,360		101,840		102,326		103,214		103,732		103,214
Tangible common equity		486,989		473,588		459,738		444,739		455,908		444,739
Ending shares outstanding		15,202,444		15,189,453		15,181,198		15,135,906		15,055,954		15,135,906
Tangible book value per share (Non-GAAP)	$	32.03	$	31.18	$	30.28	$	29.38	$	30.28	$	29.38

(1) Federal Reserve peer ratio as of June 30, 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 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 and $274,000 excess benefits recognized within “income tax expense” during the three months ended December 31, and September 30, 2016, respectively.

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