Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.05 for the fourth quarter of 2023, down 22.8% compared to the fourth quarter of 2022. Net income for the fourth quarter of 2023 was $15.0 million, down $4.5 million or 23.3% compared to the $19.5 million reported for the fourth quarter of 2022. Contributing to the lower quarterly results were increased funding costs and increased operating expenses, which included costs related to three branch closures during the fourth quarter of 2023 as well as personnel-related charges.
For the year ended December 31, 2023, diluted earnings per share of $0.66 were down 88.8% compared to the year ended December 31, 2022. Net income for 2023 was $9.5 million, a decrease of $75.5 million compared to the year ended December 31, 2022. Significant contributors to the year-over-year decrease in net income included a previously announced after-tax loss of $52.9 million, or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities, increased funding costs and an increase in operating expenses. The sale of securities and subsequent reinvestment in the second and third quarters of 2023 is favorably impacting securities revenue as the securities sold had an average yield of 0.86%, while the proceeds of the sale were largely reinvested into securities with an estimated yield of approximately 5.09%. Average yields on securities for the fourth quarter of 2023 were 2.33%, compared to 1.59% for the third quarter of 2023, and 1.44% for the fourth quarter of 2022.
Tompkins President and CEO, Stephen Romaine, commented, "In the fourth quarter we continued to execute on strategic initiatives and are pleased to announce our expanded presence in Syracuse with the grand opening of our City Center office. For the quarter we saw positive momentum with our net interest margin expanding, strong quarterly loan growth driving full year loan growth of 6.4%, signs of stabilization in our deposit base and growth in our noninterest related revenue. During the quarter we also recognized non-recurring expenses relating to three branch closures and other personnel-related expenses intended to help offset future expense growth. While the economic environment remains challenging for the industry we look forward to 2024 with our strong capital and liquidity position to continue to drive growth of quality customer relationships."
SELECTED HIGHLIGHTS FOR THE PERIOD:
Net interest margin for the fourth quarter of 2023 expanded to 2.82%, compared to 2.75% for the third quarter of 2023.
Total loans at December 31, 2023 were up $171.1 million, or 3.2% (12.6% on an annualized basis), compared to the immediate prior quarter, and up $337.0 million, or 6.4%, from December 31, 2022.
Total deposits at December 31, 2023 were $6.4 billion, down $223.6 million, or 3.4% (13.5% on an annualized basis), from September 30, 2023, and down $202.5 million, or 3.1%, from December 31, 2022.
Loan to deposit ratio was 87.6%, compared to 82.1% for the immediate prior quarter.
Regulatory Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023 and 9.34% at December 31, 2022.
NET INTEREST INCOME
Net interest income was $52.4 million for the fourth quarter of 2023, up from $51.0 million for the third quarter of 2023 and down from $57.3 million for the fourth quarter of 2022. Net interest margin was 2.82% for the fourth quarter of 2023, compared to 2.75% reported for the third quarter of 2023 and 3.02% reported for the fourth quarter of 2022. The increase in net interest income and net interest margin during the fourth quarter of this year compared to the third quarter of 2023 was primarily due to securities purchased in the second and third quarter of 2023 yielding higher interest rates compared to securities sold during the same periods. The increase in securities yields was partially offset by the reversal of $1.0 million of accrued interest during the fourth quarter related to loans that moved to nonaccrual status during the quarter, as described further below under the heading Asset Quality. The decreases in net interest income and net interest margin compared to the fourth quarter of last year were primarily attributable to increased interest costs on interest-bearing liabilities outpacing increased interest income on interest earning assets due to the higher interest rate environment.
For the year ended December 31, 2023, net interest income was $209.5 million, down $20.8 million, or 9.0%, when compared to the same period in 2022.
Average loans for the quarter ended December 31, 2023 were up $101.5 million, or 1.9%, from the third quarter of 2023, and were up $277.0 million, or 5.3%, compared to the quarter ended December 31, 2022. The increase in average loans over both prior periods was mainly in the commercial real estate portfolio. The average yield on interest-earning assets for the quarter ended December 31, 2023 was 4.3%, which was up from 4.1% for the quarter ended September 30, 2023, and up from 3.6% for the quarter ended December 31, 2022.
Average total deposits for the fourth quarter of 2023 were up $58.4 million, or 0.9%, compared to the third quarter of 2023, while period end balances were down $223.6 million compared to the third quarter of 2023 driven by seasonal deposit trends. Average deposits for the quarter were down $227.8 million, or 3.4%, compared to the same period in 2022. The decrease compared to the prior year was largely driven by inflation and persistent rate competition for deposits due to the current interest rate environment and tightening monetary policy. The cost of interest-bearing deposits increased to 2.04% for the fourth quarter of 2023, compared to 1.74% for the third quarter of 2023, and 0.69% for the fourth quarter of 2022. The cost of interest-bearing deposits for the fourth quarter of 2023 increased 135 basis points compared to the fourth quarter of 2022, and 123 basis points for the year ended December 31, 2023 compared to the same period in 2022. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2023 was 29.6% compared to 31.0% for the third quarter of 2023, and 30.8% for the year ended December 31, 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2023 of 2.25% represents an increase of 27 basis points over the third quarter of 2023, and an increase of 141 basis points over the same period in 2022.
NONINTEREST INCOME
Noninterest income of $18.9 million for the fourth quarter of 2023 was up 2.7% compared to the same period in 2022. The increase was mainly due to gains on securities transactions of $46,000 compared to losses on securities transactions of $455,000, and increases in fee-based revenues which include insurance commissions and fees, up $143,000, wealth management fees, up $181,000 and card services income, up $68,000.
Noninterest income for the year ended December 31, 2023 was $10.2 million, which represents a decrease in noninterest income of $67.7 million compared to the same period in 2022. The decrease in noninterest income was largely due to the previously noted sales of available-for-sale debt securities, mainly in the third quarter of 2023, which resulted in the recognition of a pre-tax loss of $70.0 million for the year ended December 31, 2023. Fee-based revenues, including insurance commissions and fees, wealth management fees, service charges on deposit accounts and card services income, for the year ended December 31, 2023 were collectively up $1.0 million, or 1.4%, over the same period in 2022.
NONINTEREST EXPENSE
Noninterest expense was $51.3 million for the fourth quarter of 2023, which was up $1.1 million, or 2.2%, over the fourth quarter of 2022. The increases were mainly in premises and furniture and fixtures, up $799,000, and other operating expenses, up $1.7 million; partially offset by lower salaries and wages. The increase in premises and furniture and fixtures was mainly due to $720,000 of expense related to branch closures. Contributing to the increase in other operating expense were: FDIC expense, up $723,000; technology, up $434,000; expenses related to the Company's retirement plans, up $428,000; charitable contributions and donations, up $315,000; and accrual for New York State minimum tax, up $207,000. Salaries and wages included $638,000 of personnel-related charges, which were more than offset by lower incentive related accruals.
For the year-to-date period, noninterest expense of $203.3 million was up $7.5 million, or 3.9%, from the same period in 2022. The increase in noninterest expense for the year-ended December 31, 2023 over the same period in 2022 was mainly in employee benefits and other noninterest expense. The increase in employee benefits was mainly in health insurance, which was up $1.8 million. Salaries and wages were down as annual merit increases were offset by lower incentive related accruals. Contributing to the increases in other expenses were the following: FDIC insurance, up $1.5 million; New York State minimum tax expense, up $830,000; professional fees, up $604,000; and charitable donations, up $317,000. Premises and furniture and fixtures expenses were up over prior year mainly as a result of expense related to branch closures of $879,000.
INCOME TAX EXPENSE
The provision for income tax expense of $3.1 million for an effective rate of 17.2% for the fourth quarter of 2023, compared to tax expense of $4.5 million and an effective rate of 18.6% for the same quarter in 2022. The fourth quarter 2023 included the impact of surrendering certain separate account BOLI policies, which added $1.8 million to tax expense for the quarter. For the year-ended 2023, the provision for income tax expense of $2.5 million for an effective rate of 20.6% compared to tax expense of $24.6 million and an effective rate of 22.4% for the same period in 2022. The decrease in income tax expense between comparable periods reflects the decrease in pre-tax income, due primarily to the realized losses on the sale of certain available-for-sale securities.
ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans and leases at December 31, 2023, up from 0.91% at September 30, 2023, and up from 0.87% at December 31, 2022. The ratio of the allowance to total nonperforming loans and leases was 82.84% at December 31, 2023, compared to 156.96% at September 30, 2023 and 139.86% at December 31, 2022. The decrease in the ratio compared to prior periods was due to the increase in nonperforming loans and leases discussed in more detail below.
Provision for credit losses for the fourth quarter of 2023 was $1.8 million compared to $1.4 million for the same period in 2022. Provision for credit losses for the year ended December 31, 2023 was $4.3 million, compared to $2.8 million for the year ended December 31, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by loan growth, economic forecasts, and changes in asset quality. Net charge-offs for the fourth quarter of 2023 were $410,000 compared to net charge-offs of $190,000 reported for the same period in 2022.
Nonperforming assets represented 0.80% of total assets at December 31, 2023, up from 0.41% reported at September 30, 2023 and 0.43% at December 31, 2022. At December 31, 2023, nonperforming loans and leases totaled $62.3 million, compared to $31.4 million at September 30, 2023 and $32.8 million at December 31, 2022. The increase in nonperforming loans at quarter-end December 31, 2023, was mainly due to the addition of one relationship with two commercial real estate properties in the hospitality portfolio totaling approximately $33.8 million. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of December 31, 2023. These loans were included in loans past due 30-89 days and accruing at the end of third quarter of 2023. Loans past due 30-89 days and accruing as a percentage of total loans decreased from 0.75% at the end of the third quarter of 2023 to 0.08% at the end of the fourth quarter of 2023.
Special Mention and Substandard loans and leases totaled $123.1 million at December 31, 2023, reflecting an increase from the $122.9 million reported at September 30, 2023, and $98.3 million reported at December 31, 2022.
CAPITAL POSITION
Capital ratios at December 31, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.36% at December 31, 2023, compared to 13.46% at September 30, 2023, and 14.42% at December 31, 2022. The ratio of Tier 1 capital to average assets was 9.08% at December 31, 2023, compared to 9.01% at September 30, 2023, and 9.34% at December 31, 2022.
LIQUIDITY POSITION
The Company's liquidity position at December 31, 2023 was stable and consistent with the immediately prior quarter. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of $1.4 billion, or 18.3% of total assets at December 31, 2023. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At December 31, 2023 the Company had an available borrowing capacity at the FHLB of $642 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At December 31, 2023 the available borrowing capacity with the Federal Reserve Bank was $92.6 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at December 31, 2023, the Company maintained $687.0 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.
ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and 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 Community 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 Act of 1995:
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the expected increases in revenue attributable to the reinvestment of proceeds from the sale of available-for-sale debt securities in securities with higher estimated yields and the sufficiency of existing collateral to cover exposure related to nonperforming loans. Forward-looking statements are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and other sources of liquidity; GDP growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; technological developments and changes; cybersecurity incidents and threats, the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact of national and global events, including the response to bank failures, the wars in Ukraine and Israel, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. The Company does not undertake any obligation to update its forward-looking statements.
TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data)
As of
As of
ASSETS
12/31/2023
12/31/2022
(Audited)
Cash and noninterest bearing balances due from banks
$
67,212
$
18,572
Interest bearing balances due from banks
12,330
59,265
Cash and Cash Equivalents
79,542
77,837
Available-for-sale debt securities, at fair value (amortized cost of $1,548,482 at December 31, 2023 and $1,831,791 at December 31, 2022)
1,416,650
1,594,967
Held-to-maturity debt securities, at amortized cost (fair value of $267,455 at December 31, 2023 and $261,692 at December 31, 2022)
312,401
312,344
Equity securities, at fair value
787
777
Total loans and leases, net of unearned income and deferred costs and fees
5,605,935
5,268,911
Less: Allowance for credit losses
51,584
45,934
Net Loans and Leases
5,554,351
5,222,977
Federal Home Loan Bank and other stock
33,719
17,720
Bank premises and equipment, net
79,687
82,140
Corporate owned life insurance
67,884
85,556
Goodwill
92,602
92,602
Other intangible assets, net
2,327
2,708
Accrued interest and other assets
179,799
181,058
Total Assets
$
7,819,749
$
7,670,686
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market
3,484,878
3,820,739
Time
998,013
631,411
Noninterest bearing
1,916,956
2,150,145
Total Deposits
6,399,847
6,602,295
Federal funds purchased and securities sold under agreements to repurchase
Net interest income per consolidated financial statements
$
209,514
$
230,281
Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-Ended
Year-Ended
Period End Balance Sheet
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Securities
$
1,729,838
$
1,701,636
$
1,781,150
$
1,899,001
$
1,908,088
$
1,729,838
Total Loans
5,605,935
5,434,860
5,352,365
5,273,671
5,268,911
5,605,935
Allowance for credit losses
51,584
49,336
48,545
46,099
45,934
51,584
Total assets
7,819,749
7,691,162
7,626,238
7,644,371
7,670,686
7,819,749
Total deposits
6,399,847
6,623,436
6,454,651
6,509,009
6,602,295
6,399,847
Federal funds purchased and securities sold under agreements to repurchase
50,996
56,120
50,483
63,491
56,278
50,996
Other borrowings
602,100
296,800
387,100
327,000
291,300
602,100
Total common equity
668,522
610,851
634,967
648,322
615,978
668,522
Total equity
669,934
612,356
636,441
649,765
617,390
669,934
Average Balance Sheet
Average earning assets
$
7,407,976
$
7,405,434
$
7,409,714
$
7,410,553
$
7,568,656
$
7,408,404
Average assets
7,666,982
7,629,876
7,635,800
7,633,793
7,721,335
7,641,672
Average interest-bearing liabilities
5,020,544
4,902,930
4,883,026
4,834,712
4,828,561
4,910,792
Average equity
622,280
634,980
650,554
631,208
580,720
634,732
Share data
Weighted average shares outstanding (basic)
14,194,503
14,185,763
14,314,133
14,326,595
14,308,323
14,254,661
Weighted average shares outstanding (diluted)
14,246,024
14,224,748
14,346,787
14,389,673
14,385,884
14,301,221
Period-end shares outstanding
14,405,920
14,350,177
14,405,503
14,519,748
14,519,831
14,405,920
Common equity book value per share
$
46.41
$
42.57
$
44.08
$
44.65
$
42.42
$
46.41
Tangible book value per share (Non-GAAP)**
$
39.88
$
36.01
$
37.54
$
38.16
$
35.93
$
39.88
**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP.
Income Statement
Net interest income
$
52,359
$
51,013
$
51,896
$
54,246
$
57,294
$
209,514
Provision (credit) for credit loss expense (5)
1,761
1,150
2,253
(825
)
1,397
4,339
Noninterest income
18,850
(41,624
)
12,615
20,400
18,351
10,241
Noninterest expense (5)
51,300
49,866
51,968
50,158
50,190
203,292
Income tax expense/(benefit)
3,114
(8,304
)
1,784
5,901
4,478
2,495
Net (loss)/income attributable to Tompkins Financial Corporation
15,003
(33,354
)
8,475
19,381
19,548
9,505
Noncontrolling interests
31
31
31
31
32
124
Basic earnings (loss) per share (4)
1.06
(2.35
)
0.59
1.35
1.36
0.66
Diluted earnings (loss) per share (4)
1.05
(2.35
)
0.59
1.35
1.36
0.66
Nonperforming Assets
Nonaccrual loans and leases
$
62,165
$
31,381
$
31,333
$
28,424
$
28,289
$
62,165
Loans and leases 90 days past due and accruing
101
52
34
13
25
101
Performing troubled debt restructuring*
0
0
0
0
4,530
0
Total nonperforming loans and leases
62,266
31,433
31,367
28,437
32,844
62,266
OREO
131
0
36
36
152
131
Total nonperforming assets
$
62,397
$
31,433
$
31,403
$
28,473
$
32,996
$
62,397
*No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023.
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-Ended
Year-Ended
Delinquency - Total loan and lease portfolio
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Loans and leases 30-89 days past due and
accruing
$
4,210
$
40,893
$
20,255
$
5,894
$
3,172
$
4,210
Loans and leases 90 days past due and accruing
101
52
34
13
25
101
Total loans and leases past due and accruing
4,311
40,945
20,289
5,907
3,197
4,311
Allowance for Credit Losses
Balance at beginning of period
$
49,336
$
48,545
$
46,099
$
45,934
$
44,772
$
45,934
Impact of adopting ASC 326
0
0
0
64
0
64
Provision (credit) for credit losses
2,658
968
2,419
(1,180
)
1,352
$
4,865
Net loan and lease (recoveries) charge-offs
410
177
(27
)
(1,281
)
190
$
(721
)
Allowance for credit losses at end of period
$
51,584
$
49,336
$
48,545
$
46,099
$
45,934
$
51,584
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period
$
3,167
$
2,985
$
3,151
$
2,796
$
2,751
$
2,796
(Credit) provision for credit losses
(897
)
182
(166
)
355
45
$
(526
)
Allowance for credit losses at end of period
$
2,270
$
3,167
$
2,985
$
3,151
$
2,796
$
2,270
Loan Classification - Total Portfolio
Special Mention
$
50,368
$
65,993
$
56,305
$
39,255
$
49,752
$
50,368
Substandard
72,717
56,947
61,820
46,315
48,537
72,717
Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases
1.11 %
0.58 %
0.59 %
0.54 %
0.62 %
1.11 %
Nonperforming assets/total assets
0.80 %
0.41 %
0.41 %
0.37 %
0.43 %
0.80 %
Allowance for credit losses/total loans and leases
0.92 %
0.91 %
0.91 %
0.87 %
0.87 %
0.92 %
Allowance/nonperforming loans and leases
82.84 %
156.96 %
154.76 %
162.11 %
139.86 %
82.84 %
Net loan and lease losses (recoveries) annualized/total average loans and leases
0.03 %
0.01 %
0.00 %
(0.10) %
0.01 %
(0.01) %
Capital Adequacy
Tier 1 Capital (to average assets)
9.08 %
9.01 %
9.57 %
9.63 %
9.34 %
9.08 %
Total Capital (to risk-weighted assets)
13.36 %
13.46 %
14.48 %
14.62 %
14.42 %
13.36 %
Profitability (period-end)
Return on average assets *
0.78 %
(1.73) %
0.45 %
1.03 %
1.00 %
0.12 %
Return on average equity *
9.56 %
(20.84) %
5.22 %
12.45 %
13.36 %
1.50 %
Net interest margin (TE) *
2.82 %
2.75 %
2.83 %
2.99 %
3.02 %
2.84 %
* Quarterly ratios have been annualized
Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
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 Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP)
Quarter-Ended
Year-Ended
Dec-23
Sep-23
Jun-23
Mar-23
Dec-22
Dec-23
Total common equity
$
668,522
$
610,851
$
634,967
$
648,322
$
615,978
$
668,522
Less: Goodwill and intangibles
94,003
94,086
94,169
94,253
94,336
94,003
Tangible common equity (Non-GAAP)
574,519
516,765
540,798
554,069
521,642
574,519
Ending shares outstanding
14,405,920
14,350,177
14,405,503
14,519,748
14,519,831
14,405,920
Tangible book value per share (Non-GAAP)
$
39.88
$
36.01
$
37.54
$
38.16
$
35.93
$
39.88
(1) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(2) Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2023 and 2022 to increase tax exempt interest income to taxable-equivalent basis.
(3) 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, 2022.
(4) Earnings per share for the full fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.