Tompkins Financial (TMP) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $26.1 million, up 32.5% year-over-year, with diluted EPS of $1.82, compared to $19.7 million and $1.37 in Q1 2025, but down over 72% sequentially due to prior quarter's one-time gains from the insurance subsidiary sale.

• Return on average assets was 1.23% and return on average equity was 11.11%, both higher than the prior year quarter.

• Strong loan and deposit growth, expanding net interest margin, and robust capital and liquidity positions supported profitability.

• The banking segment drove most of the earnings growth, while wealth management also saw a modest increase.

Financial highlights

• Net interest income rose 26.8% year-over-year to $71.9 million, up 4.1% sequentially, driven by higher yields, margin, and loan growth.

• Net interest margin improved to 3.57%, up 15 bps sequentially and 59 bps year-over-year.

• Noninterest income fell 52.7% to $11.8 million, mainly due to the sale of the insurance subsidiary.

• Noninterest expense decreased 5.7% to $47.7 million, reflecting lower personnel costs after the insurance business sale.

• Provision for credit losses was $1.5 million, down from $5.3 million in Q1 2025.

Outlook and guidance

• Management expects continued stable asset quality, strong capital and liquidity, and momentum in earnings and balance sheet strength.

• Interest rate risk is well managed, with simulations showing minimal impact from rate changes.

• No material changes in risk factors or forward-looking guidance were disclosed.