Tompkins Financial (TMP) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $18.6M ($1.30 diluted EPS), reversing a net loss of $33.4M ($-2.35 EPS) in Q3 2023, mainly due to prior-year securities sale losses; EPS rose 18.2% sequentially and 155.3% year-over-year.

• Year-to-date net income was $51.2M ($3.59 EPS), compared to a net loss of $5.5M ($-0.39 EPS) in the same period last year.

• Return on average assets (ROA) for Q3 2024 was 0.94% and return on average equity (ROE) was 10.65%.

• Net interest margin expanded to 2.79% in Q3 2024, with loan balances growing over 8% annualized.

• Fee-based services contributed 31% of total revenue in Q3 2024.

Financial highlights

• Total assets reached $8.0B, up 2.4% from year-end 2023; total loans grew 4.9% to $5.9B.

• Net interest income for Q3 2024 was $53.2M, up 4.3% year-over-year and 4.4% sequentially; net interest margin was 2.79% for Q3 2024, up from 2.75% in Q3 2023.

• Noninterest income for Q3 2024 was $23.4M, up $65.0M year-over-year due to the absence of a large securities loss.

• Noninterest expense for Q3 2024 was $49.9M, flat year-over-year; YTD noninterest expense was $149.7M, down 1.5% from 2023.

• Provision for credit losses was $2.2M for Q3 2024, up from $1.2M in Q3 2023, driven by loan growth and higher net charge-offs.

Outlook and guidance

• Management expects continued loan growth and stable asset quality, with capital ratios above regulatory minimums.

• Interest rate risk is managed within board-approved limits; net interest income is projected to trend higher over the next 24 months.

• Management expects continued growth driven by strengthening net interest margin, loan growth, and diversified fee-based revenue.

• The company believes it is well positioned for future growth due to strong capital and liquidity.