ITHACA — Tompkins Financial Corp. (NYSE: TMP) reported net income of $13.1 million in the second quarter, up nearly 19 percent from $11 million in the year-ago period. Diluted earnings per share totaled 87 cents in this year’s second quarter, up 16 percent from 75 cents in the second quarter of 2013. This represents the […]
ITHACA — Tompkins Financial Corp. (NYSE: TMP) reported net income of $13.1 million in the second quarter, up nearly 19 percent from $11 million in the year-ago period.
Diluted earnings per share totaled 87 cents in this year’s second quarter, up 16 percent from 75 cents in the second quarter of 2013. This represents the best second quarter in company history, Tompkins Financial said in an earnings news release issued July 25.
The Ithaca–based banking company reported net income of $25.6 million in the first half of 2014, up nearly 14 percent from $22.5 million reported in the first six months of 2013. Diluted earnings per share rose 11 percent to $1.72 in this year’s first half from $1.55 a share in the same period last year.
“We are very pleased with the earnings growth for both quarter and year to date periods,” Stephen S. Romaine, president and CEO, said in the release. “Growth in loans, securities, and core deposits contributed to improvement in net interest income. Meanwhile, a low level of net charge-offs and reductions in nonperforming asset levels resulted in a modest provision expense for the quarter.”
Tompkins Financial produced net interest income of $40.5 million in the second quarter, up more than 1.7 percent from $39.8 million in the same quarter in 2013. The net interest margin in this year’s second quarter edged down to 3.55 percent from 3.58 percent in the same period in 2013.
The banking company generated noninterest income of $17.7 million in the second quarter of 2014, up 7.1 percent from the year-prior period.
Noninterest income represented 30.4 percent of Tompkins Financial’s total revenue in this year’s second quarter, compared to 29.3 percent in the same quarter in 2013. Fee-based revenue related to wealth management, deposit fees, and card-services fees all increased in the latest quarter from the same period in 2013. However, insurance revenue slipped 1.7 percent in this year’s second quarter compared last year’s second earnings period.
Tompkins Financial incurred noninterest expenses of $38.9 million in the second quarter of 2014, up 3.1 percent from the year-earlier period. The increase primarily resulted from higher salary and wage expenses, the company reported. Non-employee related expenses were relatively unchanged in the latest quarter.
Asset quality
Asset-quality trends improved in nearly all categories during this year’s second quarter, Tompkins Financial reported. Substandard and special-mention loans declined by $70.3 million from the same quarter last year, and by $27.6 million from this year’s first quarter.
The percentage of nonperforming loans and leases to total loans and leases improved to 0.83 percent as of June 30, 2014, compared to 1.28 percent a year earlier. The percentage of nonperforming assets to total assets improved to 0.66 percent, the lowest this percentage has been over the past 21 quarters, Tompkins Financial reported.
The banking company took a provision for loan and lease losses of $67,000 in the second quarter, down sharply from $2.5 million in the second quarter of 2013. Net loan and lease charge-offs totaled $564,000 in the second quarter of 2014, down from $1.7 million in the year-prior period.
Share buyback, dividend
Tompkins Financial also announced it has authorized the repurchase of up to 400,000 shares of the company’s common stock outstanding.
Purchases may be made on the open market or in privately negotiated transactions over the next 24 months, the banking and financial services company said in a separate news release.
Tompkins Financial also declared a regular quarterly cash dividend of 40 cents a share, payable on Aug. 15, to common shareholders of record on Aug. 4. It’s the same dividend amount that it paid in each of its last three quarters.
Tompkins Financial serves 12 counties in the Central, Western, and Hudson Valley regions of New York state and five counties in Southeastern Pennsylvania. Headquartered in Ithaca, it is parent of Tompkins Trust Company, the Bank of Castile, Mahopac Bank, VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth-management services through Tompkins Financial Advisors.
Contact Rombel at arombel@cnybj.com