- Tompkins Financial Corporation (TMP, Financial) reports a 16.1% increase in diluted EPS year-over-year for Q1 2025.
- Net income for the first quarter stood at $19.7 million, up from $16.9 million in Q1 2024.
- The company saw a 11.8% rise in net interest income driven by loan growth and improved net interest margin.
Tompkins Financial Corporation (TMP) has reported an improved financial performance for the first quarter of 2025, with diluted earnings per share (EPS) increasing by 16.1% to $1.37 from $1.18 in the same period of 2024. The figure remained steady compared to the immediate previous quarter.
The company achieved a net income of $19.7 million for Q1 2025, marking a 16.6% rise from the $16.9 million recorded in the first quarter of 2024. This increase in net income is predominantly attributed to a rise in net interest income, fueled by higher interest income on loans, alongside a stabilized funding cost and growth in fee-based revenues and other income.
The net interest margin improved to 2.98% in Q1 2025, up from 2.93% in the previous quarter and 2.73% in the first quarter of 2024. Meanwhile, the total average cost of funds decreased by 4 basis points from the previous quarter to 1.84%.
Provision for credit losses saw a substantial increase to $5.3 million from $854,000 in Q1 2024, largely due to specific reserves on certain commercial real estate credits and updated economic forecasts. The allowance for credit losses represented 1.01% of total loans and leases as of March 31, 2025, up from 0.94% at year-end 2024.
Stephen Romaine, President and CEO of Tompkins, commented on the results, noting, "Our first quarter earnings continued the positive momentum from 2024. Our improved results were driven by growth in net interest income, noninterest income, and increased loan and deposit balances as compared to the first and fourth quarters of 2024."
Tompkins Financial Corporation continues to maintain a strong capital position, with the ratio of total capital to risk-weighted assets standing at 13.28% as of March 31, 2025, reflecting stability and adherence to regulatory requirements for well-capitalized institutions.
