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Tompkins Financial Corporation Reports Record First Quarter Earnings

ITHACA, N.Y.--(BUSINESS WIRE)--

Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation reported net income of $21.0 million for the first quarter of 2019, an increase of 3.0% from the $20.4 million reported for the same period in 2018. Diluted earnings per share were $1.37 for the first quarter of 2019, a 3.0% increase from $1.33 reported for the first quarter of 2018.

President and CEO, Stephen S. Romaine said, “We are excited to start 2019 with the best first quarter in our Company's history. Growth in loans and deposits, higher fee income, and improved credit quality all contributed to the improved results in 2019. During the quarter we celebrated the grand opening of our office in Amherst, NY. This is our first office in the Buffalo market and provides banking, wealth management and insurance services."

Selected highlights for first quarter:

  • Diluted earnings per share of $1.37 represent the best first quarter in Company history, and are up 3.0% over the same period in 2018
  • Total loans of $4.8 billion were up 1.8% over the same period in 2018
  • Total deposits of $5.0 billion reflect an increase of 1.2% over the same period last year
  • Total nonperforming loans were down 8.9% compared to the same period last year, and down 13.6% from December 31, 2018
  • Tangible book value per share is up 14.4% from the first quarter of 2018 and reflects the fifth consecutive quarterly increase

NET INTEREST INCOME

The net interest margin was 3.34% for the first quarter of 2019, flat compared to the fourth quarter of 2018, and is down from 3.42% for the first quarter of 2018. The net interest margin in the prior year benefited from reduced interest expense associated with accelerated accretion of purchase accounting related to certain acquired deposits.

Net interest income of $51.9 million for the first quarter of 2019 decreased by 1.5% compared to the same period in 2018, and was down 2.5% compared to the fourth quarter of 2018. The decrease in net interest income over prior year was mainly due to higher cost on interest-bearing deposits, which was largely driven by the higher market interest rate environment.

NONINTEREST INCOME

Noninterest income represented 27.2% of total revenues in the first quarter of 2019, compared to 25.3% in the same period in 2018, and 23.9% for the most recent prior quarter. Noninterest income of $19.4 million was up 8.8% compared to the same period last year, and down 2.3% compared to the fourth quarter of 2018. Insurance revenue was the largest contributor to noninterest income and reflected an increase of 8.8% over the same period last year. Noninterest income also included a one-time incentive payment of $500,000 (pre-tax) related to our card services business in the first quarter of 2019.

NONINTEREST EXPENSE

Noninterest expense was $44.2 million for the first quarter of 2019, which was up 1.1% from the same period in 2018, and down 6.4% compared to the fourth quarter of 2018. The increase in noninterest expense from the same period last year was mainly related to higher salaries and wages in the first quarter of 2019. The decline from the most recent prior quarter was primarily due to higher cost in the fourth quarter of 2018 for professional fees, primarily related to investments in strengthening the Company’s compliance and information security infrastructure.

INCOME TAX EXPENSE

The Company’s effective tax rate was 21.0% in the first quarter of 2019, compared to 22.0% for the same period in 2018.

ASSET QUALITY

Asset quality trends remained strong in the first quarter of 2019. Nonperforming assets represented 0.36% of total assets at March 31, 2019, down from 0.42% at December 31, 2018. Nonperforming asset levels continue to be below the most recent Federal Reserve Board Peer Group Average1 of 0.59%.

Provision for loan and lease losses was $445,000 for the first quarter of 2019, down from $567,000 reported for the first quarter of 2018, and $1.6 million reported for the fourth quarter of 2018. Net charge-offs for the first quarter of 2019 were $3.5 million compared to $127,000 reported in the first quarter of 2018. The first quarter of 2019 included a write-down on one large credit in the commercial real estate portfolio, the credit did have an impairment reserve at December 31, 2018.

The Company’s allowance for originated loan and lease losses totaled $40.2 million at March 31, 2019, and represented 0.89% of total originated loans and leases at March 31, 2019, compared to 0.91% at March 31, 2018, and 0.95% at December 31, 2018. The total allowance coverage of nonperforming loans and leases increased to 175.50% at March 31, 2019, up from 159.34% at March 31, 2018, and 163.25% at December 31, 2018.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio of tangible common equity to tangible assets was 8.24% at March 31, 2019, improved from the 7.81% reported for the most recent prior quarter ended December 31, 2018, and 7.29% at March 31, 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     03/31/2019     12/31/2018
Cash and noninterest bearing balances due from banks $ 68,531 $ 78,524
Interest bearing balances due from banks     2,043       1,865  
Cash and Cash Equivalents 70,574 80,389

Available-for-sale securities, at fair value (amortized cost of $1,359,102 at March 31, 2019 and $1,363,902 at December 31, 2018)

1,343,610 1,332,658
Held-to-maturity securities, at amortized cost (fair value of $140,422 at March 31, 2019 and $139,377 at December 31, 2018) 139,642 140,579
Equity securities, at fair value (amortized cost $1,000 at March 31, 2019 and $1,000 at December 31, 2018) 899 887
Originated loans and leases, net of unearned income and deferred costs and fees 4,532,803 4,568,741
Acquired loans 256,897 265,198
Less: Allowance for loan and lease losses     40,328       43,410  
Net Loans and Leases 4,749,372 4,790,529
 
Federal Home Loan Bank and other stock 45,088 52,262
Bank premises and equipment, net 96,864 97,202
Corporate owned life insurance 82,571 81,928
Goodwill 92,283 92,283
Other intangible assets, net 7,266 7,628
Accrued interest and other assets     110,550       82,091  
Total Assets     $ 6,738,719       $ 6,758,436  
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market 2,977,593 2,853,190
Time 661,712 637,295
Noninterest bearing     1,350,620       1,398,474  
Total Deposits 4,989,925 4,888,959
 
Federal funds purchased and securities sold under agreements to repurchase 66,918 81,842
Other borrowings 923,427 1,076,075
Trust preferred debentures 16,906 16,863
Other liabilities     94,276       73,826  
Total Liabilities     $ 6,091,452       $ 6,137,565  
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 15,349,988 at March 31, 2019; and 15,348,287 at December 31, 2018 1,535 1,535
Additional paid-in capital 367,245 366,595
Retained earnings 332,779 319,396
Accumulated other comprehensive loss (50,950 ) (63,165 )
Treasury stock, at cost – 117,757 shares at March 31, 2019, and 122,227 shares at December 31, 2018 (4,786 ) (4,902 )
Total Tompkins Financial Corporation Shareholders’ Equity 645,823 619,459
 
Noncontrolling interests     1,444       1,412  
Total Equity     $ 647,267       $ 620,871  
Total Liabilities and Equity     $ 6,738,719       $ 6,758,436  
 
TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except per share data) (Unaudited)     Three Months Ended
      03/31/2019   03/31/2018
INTEREST AND DIVIDEND INCOME  
Loans $ 55,324 $ 50,894
Due from banks 10 7
Available-for-sale securities 7,858 7,644
Held-to-maturity securities 858 858
Federal Home Loan Bank and other stock     878     737  
Total Interest and Dividend Income     64,928     60,140  
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more 586 (14 )
Other deposits 6,011 2,783
Federal funds purchased and securities sold under agreements to repurchase 44 46
Trust preferred debentures 329 279
Other borrowings     6,044     4,359  
Total Interest Expense     13,014     7,453  
Net Interest Income     51,914     52,687  
Less: Provision for loan and lease losses     445     567  
Net Interest Income After Provision for Loan and Lease Losses     51,469     52,120  
NONINTEREST INCOME
Insurance commissions and fees 8,045 7,394
Investment services income 4,084 4,246
Service charges on deposit accounts 1,998 2,132
Card services income 2,790 2,146
Other income 2,478 1,788
Net gain on securities transactions     12     124  
Total Noninterest Income     19,407     17,830  
NONINTEREST EXPENSE
Salaries and wages 21,101 20,998
Other employee benefits 5,611 5,376
Net occupancy expense of premises 3,601 3,646
Furniture and fixture expense 1,979 1,975
FDIC insurance 582 667
Amortization of intangible assets 412 451
Other operating expense     10,923     10,608  
Total Noninterest Expenses     44,209     43,721  
Income Before Income Tax Expense     26,667     26,229  
Income Tax Expense     5,595     5,761  
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation     21,072     20,468  
Less: Net Income Attributable to Noncontrolling Interests     32     32  
Net Income Attributable to Tompkins Financial Corporation     $ 21,040     $ 20,436  
Basic Earnings Per Share $ 1.37 $ 1.34
Diluted Earnings Per Share     $ 1.37     $ 1.33  
 
 
Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
                 
YTD Period Ended YTD Period Ended
            March 31, 2019     March 31, 2018
Average Average
Balance Average Balance Average
(Dollar amounts in thousands)       (YTD)   Interest  

Yield/
Rate

    (YTD)   Interest  

Yield/
Rate

ASSETS
Interest-earning assets
Interest-bearing balances due from banks $ 2,334 $ 10 1.74% $ 2,565 $ 7 1.11%
Securities (4)
U.S. Government securities 1,409,305 8,172 2.35% 1,454,229 7,954 2.22%
State and municipal (5) 94,609 626 2.68% 99,766 643 2.61%
Other securities (5)       3,415   41   4.87%     3,571   35   3.97%
Total securities 1,507,329 8,839 2.38% 1,557,566 8,632 2.25%
FHLBNY and FRB stock 48,055 878 7.41% 49,509 737 6.04%
 
Total loans and leases, net of unearned income (5)(6)       4,792,607   55,614   4.71%     4,688,087   51,229   4.43%
Total interest-earning assets       6,350,325   65,341   4.17%     6,297,727   60,605   3.90%
 
Other assets 393,035 355,036
 
  Total assets   $  

6,743,360

          $

6,652,763

       
 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings & money market $ 2,940,416 4,470 0.62% $ 2,796,197 1,646 0.24%
Time deposits       645,144     2,127     1.34%     717,617     1,123     0.63%
Total interest-bearing deposits 3,585,560 6,597 0.75% 3,513,814 2,769 0.32%
 
Federal funds purchased & securities sold under
agreements to repurchase 72,664 44 0.25% 75,167 46 0.25%
Other borrowings 993,773 6,044 2.47% 1,053,311 4,359 1.68%
Trust preferred debentures       16,878   329   7.90%     16,706   279   6.77%
Total interest-bearing liabilities 4,668,875 13,014 1.13% 4,658,998 7,453 0.65%
 
Non-interest bearing deposits 1,338,623 1,351,307
Accrued expenses and other liabilities 105,131 67,495
Total liabilities 6,112,629 6,077,800
 
Tompkins Financial Corporation Shareholders’ equity 629,305 573,536
Noncontrolling interest 1,426 1,427
Total equity 630,731 574,963
 
Total liabilities and equity $ 6,743,360 $ 6,652,763
Interest rate spread     3.04%     3.25%
Net interest income/margin on earning assets 52,327 3.34% 53,152 3.42%
 
Tax equivalent adjustments (413) (465)
 
  Net interest income per consolidated financial statements           $ 51,914               $ 52,687      
 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)                                    
  Quarter-Ended  

Year-Ended

Period End Balance Sheet   Mar-19   Dec-18   Sep-18     Jun-18     Mar-18     Dec-18
Securities   $ 1,484,151   $ 1,474,124     $1,452,788   $ 1,483,991   $ 1,510,795   $ 1,474,124
Originated loans and leases, net of unearned income and deferred costs and fees (2)     4,532,803     4,568,741     4,531,241     4,507,006     4,408,081     4,568,741
Acquired loans and leases (3)     256,897     265,198     271,468     284,187     296,765     265,198
Allowance for loan and lease losses     40,328     43,410     41,358     41,225     40,211     43,410
Total assets     6,738,719     6,758,436     6,746,960     6,745,800     6,648,128     6,758,436
Total deposits     4,989,925     4,888,959     5,025,082     4,792,229     4,929,903     4,888,959

Federal funds purchased and securities sold under agreements to repurchase

    66,918     81,842     52,875     52,042     69,131     81,842
Other borrowings     923,427     1,076,075     988,515     1,229,956     995,074     1,076,075
Trust preferred debentures     16,906     16,863     16,820     16,777     16,734     16,863
Total common equity     645,823     619,459     597,636     589,173     577,967     619,459
Total equity     647,267     620,871     599,144     590,649     579,411     620,871
           
 
Average Balance Sheet                                    
Average earning assets   $ 6,350,325   $ 6,364,113  

$

6,356,781

  $ 6,348,562  

$

6,297,727   $ 6,342,019
Average assets     6,743,360     6,710,944    

6,716,452

    6,689,649     6,652,763     6,692,678
Average interest-bearing liabilities     4,668,875     4,606,536    

4,644,533

    4,709,122     4,658,998     4,654,625
Average equity     630,731     606,238    

597,211

    584,951     574,963     590,944
 
 
Share data                                    
Weighted average shares outstanding (basic)  

 

15,060,175

   

15,057,673

   

15,047,405

   

15,038,061

   

15,013,478

   

15,039,229

Weighted average shares outstanding (diluted)    

15,136,523

   

15,135,750

   

15,144,491

   

15,135,970

   

15,112,518

   

15,132,257

Period-end shares outstanding    

15,314,078

 

15,312,377

 

15,277,915

 

15,278,430

 

15,285,335

 

15,312,377

Common equity book value per share  

$

42.17

$

40.45

$

39.12

$

38.56

$

37.81

$

40.45
Tangible book value per share (Non-GAAP)  

$

35.73

$

33.98

$

32.60

$

32.02

$

31.24

$

33.98
 
 
Income Statement                                    
Net interest income   $ 51,914   $ 53,236   $ 53,163   $ 52,714   $ 52,687   $ 211,800
Provision for loan/lease losses     445     2,058     272     1,045     567     3,942
Noninterest income     19,407     19,858     18,603     21,158     17,830     77,449
Noninterest expense     44,209     47,228     45,133     44,985     43,721     181,067
Income tax expense     5,595     4,866     5,427     5,751     5,761     21,805
Net income attributable to Tompkins Financial Corporation     21,040     18,911     20,902     22,059     20,436     82,308
Noncontrolling interests     32     31     32     32     32     127
Basic earnings per share (8)   $ 1.37   $ 1.24   $ 1.37   $ 1.44   $ 1.34   $ 5.39
Diluted earnings per share (8)   $ 1.37   $ 1.23   $ 1.36   $ 1.43   $ 1.33   $ 5.35
 
 
Nonperforming Assets                                    
Originated nonaccrual loans and leases   $ 15,165   $ 19,340   $ 17,518   $ 19,082   $ 18,429   $ 19,340
Acquired nonaccrual loans and leases     2,579     2,856     2,659     2,673     3,352     2,856
Originated loans and leases 90 days past due and accruing     0     0     0     0     0     0
Troubled debt restructurings not included above     5,234     4,395     4,295     4,324     3,455     4,395
Total nonperforming loans and leases     22,978     26,591     24,472     26,079     25,236     26,591
OREO     1,595     1,595     1,870     2,233     2,047     1,595
Total nonperforming assets   $ 24,573   $ 28,186   $ 26,342   $ 28,312   $ 27,283   $ 28,186
 

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

    Quarter-Ended  

Year-Ended

Delinquency - Originated loan and lease portfolio     Mar-19     Dec-18     Sep-18     Jun-18     Mar-18     Dec-18
Loans and leases 30-89 days past due and          
accruing (2)   $ 4,193     $ 7,838     $ 6,454     $ 5,875     $ 6,513     $ 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)     4,193       7,838       6,454       5,875       6,513       7,838
 
 
Delinquency - Acquired loan and lease portfolio                                              
Loans 30-89 days past due and accruing (3)(7)   $ 474     $ 67     $ 1,109     $ 1,108     $ 823     $ 67
Loans 90 days or more past due     1,218       1,316       1,420       1,110       1,077       1,316
Total acquired loans and leases past due and accruing     1,692       1,383       2,529       2,218       1,900       1,383
Total loans and leases past due and accruing   $ 5,885     $ 9,221     $ 8,983     $ 8,093     $ 8,413     $ 9,221
 
 
Allowance for Loan Losses - Originated loan and lease portfolio                                              
Balance at beginning of period   $ 43,321     $ 41,289     $ 41,111     $ 40,107     $ 39,686     $ 39,686
Provision for loan and lease losses     480       2,046       208       1,035       608       3,897
Net loan and lease (recoveries) charge-offs     3,556       14       30       31       187       262
Allowance for loan and lease losses (originated
loan portfolio) - balance at end of period   $ 40,245     $ 43,321     $ 41,289     $ 41,111     $ 40,107     $ 43,321
 
 
Allowance for Loan Losses - Acquired loan and lease portfolio                                              
Balance at beginning of period   $ 89     $ 69     $ 114     $ 104     $ 85     $ 85
Provision (credit) for loan and lease losses     (35 )     12       64       10       (41 )     45
Net loan and lease (recoveries) charge-offs     (29 )     (8 )     109       0       (60 )     41
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period     83       89       69       114       104       89
                                               
Total allowance for loan and lease losses     40,328     $ 43,410     $ 41,358     $ 41,225     $ 40,211     $ 43,410
 
Loan Classification - Originated Portfolio                                              
Special Mention   $ 33,689     $ 28,074     $ 34,245     $ 44,068     $ 34,546     $ 28,074
Substandard     35,895       43,963       49,597       41,572       35,746       43,963
Loan Classification - Acquired Portfolio                                              
Special Mention     270       452       465       469       476       452
Substandard     2,830       2,914       3,041       3,180       3,468       2,914
Loan Classifications – Total Portfolio                                              
Special Mention     33,959       28,526       34,710       44,537       35,022       28,526

Substandard

   

2,830

     

2,914

     

3,041

     

3,180

     

3,468

     

2,914

 

Ratio Analysis

 

Credit Quality

                                             
Nonperforming loans and leases/total loans and leases (7)     0.48%     0.55%     0.51%     0.54%     0.54%     0.55%
Nonperforming assets/total assets     0.36%     0.42%     0.39%     0.42%     0.41%     0.42%
Allowance for originated loan and lease losses/total originated loans and leases     0.89%     0.95%     0.91%     0.91%     0.91%     0.95%
Allowance/nonperforming loans and leases     175.51%     163.25%     169.00%     158.11%     159.34%     163.25%
Net loan and lease losses annualized/total average loans and leases     0.30%     0.00%     0.01%     0.00%     0.01%     0.01%
 

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

       
    Year-Ended
Capital Adequacy (period-end)     Mar-19   Dec-18   Sep-18   Jun-18   Mar-18   Dec-18
Tangible common equity/tangible assets     8.24%   7.81%   7.49%   7.36%   7.29%   7.81%
           

Profitability

                         
Return on average assets *     1.27%   1.12%   1.23%   1.32%   1.25%   1.23%
Return on average equity *     13.53%   12.38%   13.89%   15.13%   14.41%   13.93%
Net interest margin (TE) *     3.34%   3.34%   3.35%   3.36%   3.42%   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 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 - Adjusted Diluted Earnings Per Share
    Quarter-Ended   Year-Ended
      Mar-19     Dec-18     Sep-18     Jun-18     Mar-18     Dec-18
Net income available to common shareholders   $ 21,040   $ 18,911   $ 20,902   $ 22,059   $ 20,436   $ 82,308

Income attributable to unvested stock-based
compensation awards

    349     291     318     359     347     1,315
Net earnings allocated to common shareholders     20,691     18,620     20,584     21,700     20,089     80,993
Remeasurement of net deferred taxes     0     0     0     0     0     0
Gain on sale of real estate, net of tax     0     0     0     2,227     0     2,227
Write-down of impaired leases, net of tax     0     0     (388)     (1,527)     0     (1,915)
Net income (Non-GAAP)     20,691     18,620     20,972     21,000     20,089     80,681
Weighted average shares outstanding (diluted)   15,136,523   15,135,750   15,144,491   15,135,970   15,112,518   15,132,257
Adjusted diluted earnings per share (Non-GAAP)   $ 1.37   $ 1.23   $ 1.38   $ 1.39   $ 1.33   $ 5.33
         

Non-GAAP Disclosure - Tangible Book Value Per Share

                                   
Total common equity   $ 645,823   $ 619,459   $ 597,636   $ 589,173   $ 577,967   $ 619,459
Less: Goodwill and intangibles (9)     98,694     99,106     99,543     99,983     100,436     99,106
Tangible common equity     547,129     520,353     498,093     489,190     477,531     520,353
Ending shares outstanding   15,314,078   15,312,377   15,277,915   15,278,430   15,285,335   15,312,377
Tangible book value per share (Non-GAAP)   $ 35.73   $ 33.98   $ 32.60   $ 32.02   $ 31.24   $ 33.98

(1) Federal Reserve peer ratio as of December 31, 2018, 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.

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