Curated News
By: NewsRamp Editorial Staff
October 24, 2025
Tompkins Financial Q3 Earnings Soar 27% on Strong Growth
TLDR
- Tompkins Financial's 27% net income growth and improved capital ratios offer investors a strong competitive advantage in the banking sector.
- Tompkins Financial achieved earnings growth through net interest margin expansion to 3.20%, loan growth of 6.9%, and disciplined expense management.
- Tompkins Financial's strengthened position enables continued support for local communities through quality customer relationships and community investment.
- Tompkins Financial's net interest income surged 20% year-over-year while maintaining regulatory capital ratios well above required minimums.
Impact - Why it Matters
This financial performance matters because Tompkins Financial's strong results signal broader economic health in the regions it serves, particularly in New York and Pennsylvania. For customers and local businesses, the bank's robust growth and capital position mean continued access to credit and financial services during uncertain economic times. Investors should note the impressive 41 basis point expansion in net interest margin, which indicates effective management in a challenging interest rate environment. The 7% deposit and loan growth suggests strong consumer and business confidence in the bank's service areas. For the banking sector overall, Tompkins' ability to maintain asset quality while expanding demonstrates that regional banks can successfully navigate current economic headwinds through strategic management and disciplined growth.
Summary
Tompkins Financial Corporation delivered impressive third-quarter 2025 results, demonstrating significant growth across key financial metrics. The company reported diluted earnings per share of $1.65, representing a substantial 26.9% increase compared to the same quarter in 2024, while net income surged to $23.7 million, up 27.0% year-over-year. President and CEO Stephen Romaine attributed this strong performance to net interest margin expansion and solid loan and deposit growth of 7%. The company's net interest income reached $63.9 million for the quarter, up 20.1% from the prior year, driven by improved net interest margin of 3.20%, which expanded by 41 basis points compared to the third quarter of 2024.
The financial institution showed robust balance sheet growth with total loans increasing to $406.8 million, or 6.9% from September 2024, while total deposits grew to $7.1 billion, up 7.2% year-over-year. Asset quality remained stable with nonperforming assets representing 0.63% of total assets, showing improvement from 0.78% in the prior year period. The company maintained strong capital ratios, with Tier 1 capital to average assets at 9.41%, well above regulatory requirements for well-capitalized institutions. Tompkins Financial also demonstrated disciplined expense management while making strategic investments in future growth, with noninterest expense increasing 4.3% year-to-date, reflecting investments in personnel and operational infrastructure to support expansion.
Looking at the broader performance, year-to-date results through September 30, 2025, showed diluted earnings per share of $4.52, up 25.9% from the same period in 2024, with net income reaching $64.8 million, a 26.6% increase. The company's liquidity position remained strong with $1.5 billion in ready access to funding sources, representing 17.8% of total assets. Tompkins Financial Corporation, serving New York and Pennsylvania regions through Tompkins Community Bank and Tompkins Insurance Agencies, continues to build quality customer relationships while supporting local communities, positioning itself for sustained growth in the competitive financial services landscape.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Tompkins Financial Q3 Earnings Soar 27% on Strong Growth
