Tompkins Financial Corp. Reports Strong Third Quarter 2025 Earnings Growth

Tompkins Financial Corporation reported diluted earnings per share of $1.65 for the third quarter of 2025, representing a 10.0% increase from the immediate prior quarter and a substantial 26.9% improvement from the $1.30 reported for the third quarter of 2024. Net income for the quarter reached $23.7 million, up $2.2 million or 10.3% compared to the second quarter of 2025, and showing a $5.0 million or 27.0% increase when compared to the same period in 2024.

The company's year-to-date performance through September 30, 2025, also showed strong momentum with diluted earnings per share of $4.52, up 25.9% from the $3.59 reported for the comparable period in 2024. Year-to-date net income reached $64.8 million, representing a $13.6 million or 26.6% increase compared to $51.2 million for the same nine-month period in the previous year.

Stephen Romaine, Tompkins President and CEO, commented that the third quarter financial results highlight the strength of the company's team and balance sheet. The performance was driven by continued net interest margin expansion along with loan and deposit growth of 7%. The improved earnings reflected the results of investments in the business, as expenses for the 2025 year-to-date period were up over 4% compared to the prior year period.

Key financial metrics showed significant improvement across multiple areas. The net interest margin improved to 3.20% in the third quarter of 2025, up 12 basis points from the immediate prior quarter and up 41 basis points from the third quarter of 2024. Total loans at September 30, 2025, reached $6.2 billion, up $115.4 million or 1.9% compared to June 30, 2025, representing 7.5% growth on an annualized basis. Compared to September 30, 2024, total loans increased by $406.8 million or 6.9%.

Deposit growth remained strong with total deposits at September 30, 2025, reaching $7.1 billion, up $337.3 million or 5.0% compared to the most recent prior quarter end, and up $475.2 million or 7.2% from September 30, 2024. The loan to deposit ratio improved to 89.2% at September 30, 2025, compared to 91.9% at June 30, 2025, and 89.4% at September 30, 2024.

Net interest income was $63.9 million for the third quarter of 2025, up $3.7 million or 6.2% compared to the second quarter of 2025, and up $10.7 million or 20.1% compared to the third quarter of 2024. For the nine months ended September 30, 2025, net interest income was $180.7 million, up $25.8 million or 16.7% when compared to the same period in 2024. The increase in net interest income compared to both periods was due to improvement in net interest margin and growth in average loans.

Noninterest income showed modest growth, reaching $23.6 million for the third quarter of 2025, up $179,000 or 0.8% compared to the third quarter of 2024. Year-to-date noninterest income of $71.1 million was up $3.8 million or 5.7% compared to the same period in 2024, mainly due to increases in other income, insurance commissions and fees, and wealth management fees.

The company maintained strong asset quality metrics with nonperforming assets of $53.0 million representing 0.63% of total assets at September 30, 2025, in line with June 30, 2025, and down from $62.7 million or 0.78% at September 30, 2024. The allowance for credit losses represented 0.95% of total loans and leases at September 30, 2025, unchanged from the most recent prior quarter.

Capital ratios remained well above regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.27% at September 30, 2025, compared to 13.15% at June 30, 2025, and 13.21% at September 30, 2024. The ratio of Tier 1 capital to average assets improved to 9.41% at September 30, 2025, compared to 9.36% at June 30, 2025, and 9.19% at September 30, 2024.

The company's liquidity position remained stable with ready access to liquidity of $1.5 billion, or 17.8% of total assets, at September 30, 2025. This strong performance across multiple financial metrics demonstrates the company's ability to navigate current market conditions while maintaining growth momentum and financial stability. For more information about Tompkins Financial Corporation, visit https://www.tompkinsfinancial.com.