Tompkins Financial Reports Strong Q3 2025 Earnings Growth

Tompkins Financial Corporation reported substantial financial improvement for the third quarter of 2025, with diluted earnings per share reaching $1.65, representing a 10.0% increase from the previous quarter and a 26.9% improvement compared to the third quarter of 2024. Net income for the quarter totaled $23.7 million, up $2.2 million from the second quarter of 2025 and $5.0 million higher than the same period last year. The company's year-to-date performance through September 30, 2025, showed diluted earnings per share of $4.52, a 25.9% increase from the $3.59 reported for the comparable period in 2024, while net income reached $64.8 million, up $13.6 million or 26.6% from the previous year.

Stephen Romaine, President and CEO of Tompkins Financial, attributed the strong performance to the company's team strength and balance sheet quality. The 27.0% net income growth in the third quarter of 2025 compared to the same quarter in the prior year was driven by continued net interest margin expansion along with 7% loan and deposit growth. The improved earnings reflected strategic business investments, with expenses for the 2025 year-to-date period increasing over 4% compared to the prior year period. The company maintains confidence in its positioning to support continued growth, build quality customer relationships, and support local communities.

The net interest margin improved significantly to 3.20% in the third quarter of 2025, rising 12 basis points from the immediate prior quarter and 41 basis points from the third quarter of 2024. Total loans at September 30, 2025 increased by $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 grew by $406.8 million, or 6.9%. Deposit growth was equally robust, with total deposits reaching $7.1 billion at September 30, 2025, up $337.3 million, or 5.0% from the previous quarter, and $475.2 million, or 7.2% higher than September 30, 2024.

Net interest income reached $63.9 million for the third quarter of 2025, increasing $3.7 million or 6.2% compared to the second quarter of 2025, and $10.7 million or 20.1% higher than the third quarter of 2024. The improvement in net interest income compared to both periods resulted from net interest margin enhancement and growth in average loans. For the nine months ended September 30, 2025, net interest income totaled $180.7 million, up $25.8 million or 16.7% compared to the same period in 2024. Average loans for the quarter ended September 30, 2025 increased by $86.8 million, or 1.4% from the previous quarter, and were $385.5 million, or 6.6% higher than the same prior year period.

Noninterest income showed modest improvement, reaching $23.6 million for the third quarter of 2025, up $179,000 or 0.8% compared to the third quarter of 2024. The increase was primarily due to higher gains on loan sales, which increased $202,000 or 52.2% compared to the same period in 2024. Year-to-date noninterest income of $71.1 million increased $3.8 million or 5.7% compared to the same period in 2024, driven by a $2.1 million, or 28.7% increase in other income that included a $1.9 million gain on the sale of other real estate owned, along with increased insurance commissions and fees of $1.9 million or 6.1%.

The company's capital position remained strong, with capital ratios 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 Tier 1 capital to average assets ratio improved to 9.41% at September 30, 2025, from 9.36% at June 30, 2025, and 9.19% at September 30, 2024. Liquidity remained stable with ready access to $1.5 billion, representing 17.8% of total assets at September 30, 2025, enhanced by access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank's Discount Window advances and Federal Home Loan Bank advances. For more information about the company's financial services, visit https://www.tompkinsfinancial.com.