ITHACA — Tompkins Financial Corp. (NYSE: TMP) reported that its net income soared 30 percent in the first quarter to a record $20.4 million from the $15.7 million it reported in the same period in 2017. The Ithaca–based banking company said its earnings per share rose 29 percent to a record $1.33 in the first […]
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ITHACA — Tompkins Financial Corp. (NYSE: TMP) reported that its net income soared 30 percent in the first quarter to a record $20.4 million from the $15.7 million it reported in the same period in 2017.
The Ithaca–based banking company said its earnings per share rose 29 percent to a record $1.33 in the first quarter from $1.03 in the year-earlier period.
Improving margins, higher fee-income growth, and a lower tax rate due to federal tax reform contributed to the profit rise.
“We are excited to start 2018 with very strong earnings growth. Solid loan growth, an improved net interest margin, and higher fee income all contributed to earnings improvement over the prior year. Our first quarter earnings also benefited from a lower tax rate in 2018,” Stephen S. Romaine, president and CEO of Tompkins Financial, said in the earnings report.
Tompkins Financial’s net interest income rose nearly 10 percent to $52.7 million in the first quarter.
Total loans increased by 9.5 percent in the last year to $4.7 billion as of the end of the first quarter. Total deposits increased by 1.6 percent to $4.9 billion in the same period.
Net interest income benefitted from the loan growth and reduced interest expense on time deposits, the banking company said in the earnings report. Tompkins Financial’s net interest margin was 3.42 percent for the first quarter of 2018, up from 3.38 percent for the same quarter in 2017.
Tompkins Financial posted noninterest income of $17.8 million in the first quarter, up 3.4 percent from the same period last year. Fee-based income related to insurance and investment services, card services, and deposit-account fees improved a combined 5.5 percent over the same period in 2017, the earnings report said.
Tompkins Financial’s effective tax rate was 22.0 percent in the first quarter of 2018, compared to 31.9 percent for the same period in 2017. The banking company said the decrease was a direct result of the Tax Cuts and Jobs Act of 2017, which reduced the federal corporate tax rate from 35 percent in 2017, to 21 percent in 2018.
The banking company said its “asset quality trends remained strong in the first quarter of 2018.” Nonperforming assets represented 0.41 percent of total assets as of March 31, up slightly from 0.38 percent at the end of 2017. Nonperforming asset levels continue to be below the most recent Federal Reserve Board peer group average of 0.63 percent, Tompkins Financial said.
Tompkins Financial’s provision for loan and lease losses totaled $567,000 for the first quarter, down from $769,000 reported in the year-ago quarter. It posted net charge-offs of $127,000 in the first quarter, down from $358,000 in the first quarter of 2017.
The banking company’s allowance for originated loan and lease losses totaled $40.1 million as of March 31, and represented 0.91 percent of total originated loans and leases, compared to 0.92 percent a year prior.
Tompkins Financial is a financial-services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Tompkins Financial is parent of 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.
