Tompkins Financial(US:TMP)2025-05-06 17:56Financial Performance - Net income attributable to Tompkins Financial Corporation was $19,679 thousand for Q1 2025, compared to $16,872 thousand in Q1 2024, indicating a year-over-year increase of 16.5%[17]. - Basic earnings per share increased to $1.38 for the three months ended March 31, 2025, up from $1.19 in the same period last year, representing a growth of 16.1%[17]. - The company reported a total comprehensive income of $35,961 thousand for the three months ended March 31, 2025, compared to $7,061 thousand in the same period last year, indicating a significant improvement in overall financial performance[19]. - For the three months ended March 31, 2025, the consolidated net income attributable to Tompkins Financial Corporation was $19,679,000, compared to $16,872,000 for the same period in 2024, representing an increase of approximately 16.5%[113][114]. - Net interest income for the three months ended March 31, 2025, was $56,662,000, compared to $50,675,000 for the same period in 2024, reflecting an increase of approximately 11.7%[113][114]. - Noninterest income for the three months ended March 31, 2025, totaled $25,032,000, compared to $22,137,000 in the prior year, marking an increase of about 13.0%[113][114]. - Noninterest income for Q1 2025 was $8.6 million, up $1.5 million or 21.6% compared to Q1 2024, including a gain on the sale of other real estate owned of $1.9 million[175]. - Noninterest expense for Q1 2025 was $39.7 million, an increase of $330,000 or 0.8% from Q1 2024, primarily due to higher salaries and employee benefits[176]. Asset and Deposit Growth - Total assets increased to $8,199,653 thousand as of March 31, 2025, up from $8,109,080 thousand as of December 31, 2024, representing a growth of 1.1%[15]. - Total deposits grew to $6,753,502 thousand, an increase of 4.4% from $6,471,805 thousand at the end of 2024[15]. - Total assets as of March 31, 2025, were $8.2 billion, an increase of $90.6 million or 1.1% from December 31, 2024[199]. - The company reported total deposits of $6,753,502,000 as of March 31, 2025, compared to $6,449,616,000 as of March 31, 2024, reflecting a growth of about 4.7%[113][114]. Loan and Lease Performance - Net loans and leases rose to $6,005,622 thousand, an increase of 0.7% from $5,963,426 thousand at the end of 2024[15]. - Total loans and leases increased to $6,071,523 thousand as of March 31, 2025, up from $6,025,108 thousand on December 31, 2024, representing a growth of 0.77%[55]. - The total past due loans as of March 31, 2025, amounted to $71,113 thousand, compared to $52,907 thousand on December 31, 2024, reflecting an increase of 34.6%[57][59]. - The commercial real estate segment showed a total of $3,426,172 thousand in loans as of March 31, 2025, up from $3,379,817 thousand at the end of 2024, marking a growth of 1.37%[55]. - The residential real estate loans remained stable with a total of $1,571,953 thousand as of March 31, 2025, slightly increasing from $1,570,840 thousand at the end of 2024[55]. - Total loans and leases at the end of Q1 2025 were $6.07 billion, up from $6.02 billion at the end of 2024[207]. Credit Loss Provisions and Allowances - The provision for credit loss expense was $5,287 thousand for Q1 2025, significantly higher than $854 thousand in Q1 2024, reflecting increased caution in credit risk management[17]. - The allowance for credit losses (ACL) methodology is based on SEC guidance and is critical for evaluating credit loss exposure in the loan portfolio[62]. - The allowance for credit losses on loans and leases increased to $61,023,000 as of March 31, 2025, up from $51,704,000 as of March 31, 2024, representing a 17.9% increase[71][72]. - The provision for credit loss expense for the three months ended March 31, 2025, was $5,260,000, compared to $348,000 for the same period in 2024, indicating a significant increase in provisions[71][72]. - The total gross write-offs for the current period in Commercial and Industrial loans were $0, maintaining a stable performance compared to previous years[82]. Regulatory Compliance and Risk Management - Tompkins Financial Corporation is subject to comprehensive regulation by the Federal Reserve Board and other regulatory authorities, ensuring compliance with various financial regulations[27][28]. - The company manages economic risks, including interest rate, liquidity, and credit risk, primarily through the management of its assets and liabilities[136]. - Regulatory compliance is critical, with oversight from multiple agencies including the Federal Reserve Board and the SEC[159]. Market and Competitive Landscape - The Company faces strong competition from various financial institutions, including banks, credit unions, and online financial services[157][158]. - Tompkins Financial Corporation aims for responsible and sustainable growth, focusing on organic growth and potential acquisitions of financial institutions[152]. Other Financial Metrics - Return on average assets (ROA) for Q1 2025 was 0.99%, compared to 0.87% in Q1 2024, while return on average shareholders' equity (ROE) increased to 10.96% from 10.18%[170]. - The banking segment reported net income of $15.7 million for Q1 2025, a 15.7% increase from $13.6 million in Q1 2024, primarily due to higher net interest margin and other income[172]. - Net interest margin improved to 2.98% in Q1 2025 from 2.73% in Q1 2024, primarily due to lower funding costs and higher yields on interest-earning assets[185].