ITHACA — Tompkins Financial Corp. (NYSE: TMP) recently reported net income of $21.4 million, or $1.44 per share, in the second quarter, up from $19.4 million, or $1.27 a share, in the same period in 2019. Tompkins Financial’s year-to-date net income was $29.4 million, down from $40.4 million in the year-prior period. “Economic stress” resulting […]
ITHACA — Tompkins Financial Corp. (NYSE: TMP) recently reported net income of $21.4 million, or $1.44 per share, in the second quarter, up from $19.4 million, or $1.27 a share, in the same period in 2019.
Tompkins Financial’s year-to-date net income was $29.4 million, down from $40.4 million in the year-prior period.
“Economic stress” resulting from the COVID-19 pandemic “negatively impacted” the results for the 2020 year-to-date period. Those conditions also contributed to the $16.3 million provision for credit losses recognized during the first quarter of 2020, Tompkins Financial said in its earnings report.
Still, the banking company’s leader expressed optimism about the future.
“Although the longer term impact of the pandemic and related economic conditions are still unknown, there have been several recent positive trends noted with certain national economic indicators, such as reduced levels of unemployment, improving retail sales and improving consumer confidence,” Stephen Romaine, president and CEO of Tompkins Financial, said in the report. “At Tompkins, we have seen several positive trends as well, with very strong mortgage application volumes in the second quarter, higher levels of debit card spending, and favorable credit quality measures when compared to last quarter. We are encouraged by some of these recent favorable trends, though the recent rise in COVID-19 cases nationally makes it clear that much uncertainty remains. We will remain vigilant in monitoring risk trends as we navigate these challenging times.”
Tompkins Financial’s stock price is down more than 25 percent year to date, but has shown signs of rebounding lately. Many other community and regional banks have also seen their share prices fall this year amid the economic fallout of the pandemic.
Selected highlights for Tompkins Financial’s second quarter included the following:
• The banking company’s total loans of $5.4 billion were up 11.7 percent over the year-ago period. The increase included $465.6 million of Paycheck Protection Program (PPP) loans funded during the second quarter of 2020. As a result of its participation in PPP, Tompkins Financial recorded net deferred loan fees of $2.3 million in the second quarter, which are included in its interest income.
• The banking company’s total deposits of $6.4 billion increased by 28 percent over June 30, 2019 levels.
• Net interest margin was 3.45 percent for the second quarter of 2020, up from 3.44 percent for the first quarter, and 3.43 percent in the fourth quarter of 2019.
• The ratio of total capital to risk-weighted assets improved to 13.95 percent, from 13.62 percent as of March 31, 2020, and 13.53 percent as of Dec. 31, 2019.
Tompkins Financial 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, 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.