Tompkins Financial Corporation (NYSE Amex: TMP)
Tompkins Financial Corporation reported record net income of $9.4 million for the second quarter of 2011, an increase of 4.1% over the $9.0 million reported for the same period in 2010. Diluted earnings per share were $0.85 for the second quarter of 2011, a 2.4% increase over the $0.83 reported for the second quarter of 2010.
For the six months ended June 30, 2011, net income was $18.2 million compared to $17.4 million for the same period prior year. Diluted earnings per share totaled $1.65 for the first six months of 2011, an increase of 2.5% over the $1.61 reported for the first six months of 2010.
Selected highlights for the second quarter and year-to-date period included:
- Diluted earnings per share as of June 30, 2011, reflect the best quarter and year-to-date results in Company history.
- The Company’s board of directors approved a cash dividend of $0.36 per share to be paid in the third quarter of 2011, a 5.9% increase from the immediately preceding quarter. The increase follows a trend of 22 consecutive years of increases in annual cash dividends paid to shareholders through the 2010 calendar year.
- Total revenue was $40.0 million for the second quarter of 2011 and $80.0 million for the first six months of 2011, up 1.3% and 1.6%, respectively, over the same periods in 2010.
- Total loans were $1.9 billion at June 30, 2011, up $20.4 million or 1.1% from June 30, 2010.
- Total deposits were $2.6 billion at quarter end, up 4.5% from the same period in 2010. Noninterest-bearing deposits totaled $536.3 million at June 30, 2011, an increase of 13.1% over the same period in 2010.
- The net interest margin for the second quarter of 2011 was 3.77%, compared to 3.78% for the first quarter of 2011, and 3.91% for the second quarter of 2010. Despite the decline in net interest margin over the past 12 months, net interest income of $28.0 million for the second quarter of 2011 was down less than 1.0% when compared to the same quarter last year. Growth in earning assets, primarily in the securities portfolio, helped mitigate the earnings impact of the decline in margin.
- Noninterest income was up 6.0% for the quarter and up 8.2% for the year-to-date period. Fee income from investment services, insurance, and card services were all up for both the quarter and year-to-date periods, while service charges on deposit accounts declined. The lower level of service charges on deposit accounts was impacted by regulatory changes that went into effect in the third quarter of 2010.
- Noninterest expense for the second quarter of 2011 was $25.2 million, up 2.6% over the same period prior year. Noninterest expense for the year-to-date period was $50.4 million, an increase of 2.8% over the first six months of 2010.
- Favorable trends in net charge-offs and nonperforming assets contributed to a decline in the provision for loan and lease losses from $1.4 million in the second quarter of 2010, to $1.0 million in the second quarter of 2011.
- Nonperforming assets declined for the third consecutive quarter, although nonperforming assets levels remain above the totals reported at June 30, 2010. The ratio of nonperforming assets to total assets of 1.30% at June 30, 2011, continues to be well below the most recent peer averages published by the Federal Reserve. The Company continues to receive regular payments on over 60% of loan balances that we categorize as nonperforming.
- Net charge-offs declined for the second consecutive quarter. Although net charge-offs for the quarter of $679,000 are up over the $244,000 recorded for the same quarter last year, they remain well below the most recent peer averages published by the Federal Reserve.
- The Company’s allowance for loan and lease losses totaled $28.4 million at June 30, 2011, which represented 1.48% of total loans, compared to $27.8 million and 1.46% at December 31, 2010, and $26.5 million and 1.40% at June 30, 2010. The allowance for loan and lease losses coverage of nonperforming loans improved during the most recent quarter to 69.23% up from 61.46% at December 31, 2010, and 68.61% at June 30, 2010.
- Capital levels showed continued growth during the quarter and ratios remain well above the regulatory well capitalized minimums. Tier 1 capital as a percentage of average assets was 8.39%; and the ratio of total capital to risk-weighted assets was 13.98%. These ratios are up from 8.02% and 13.42%, respectively at December 31, 2010.
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