Tompkins Financial reports Q2 earnings
Company reports net income down 8.6% in the second quarter over 2021
ITHACA, N.Y. » Tompkins Financial Corp. has reported diluted earnings per share of $1.45 for the second quarter of 2022, down 5.8% from the $1.54 per share reported in the second quarter of 2021.
The Ithaca, N.Y.-based parent of Tompkins Community Bank (formerly Tompkins VIST Bank) released its earnings report for the second quarter on Tuesday, July 26.
Net income for the second quarter of 2022 was $20.9 million, down $2 million or 8.6% when compared to the $22.8 million reported for the same period in 2021.
Tomkins Financial cites a $3.9 million pretax variance in provision for credit losses as primarily attributable to the reduced earnings. That pretax variance in provision for credit losses was an expense of $856,000 in 2022, versus a credit of $3.1 million in 2021, according to a press release.
“Results for the second quarter of 2022 included several favorable trends when compared to the most recent prior quarter, including an improved net interest margin, increased loan balances, and higher revenue,” Tompkins President and CEO Stephen Romaine said in a statement. “Notably, revenue was up 4.8% from the same quarter last year despite a $1.0 million decline in net deferred loan fees associated with Paycheck Protection Program (“PPP”) Loans, as outstanding balances in the SBA administered program continue to decline.”
Selected highlights for the quarter included:
• Average total deposits for the second quarter of 2022 were down $91.3 million, or 1.4% compared to the same period in 2021.
• Total loans on June 30, 2022, were $5.2 billion, up $99.1 million over the immediate prior quarter, reflecting an annualized increase of 7.8% from March 31, 2022.
• PPP loan balances were $3.5 million on June 30, 2022, reflecting a decline of $20.6 million from March 31, 2022. Total loans, exclusive of PPP loan balances, were up approximately 9.7% annualized over March 2022.
• Net interest income was $58.3 million for the second quarter of 2022, up from $56.6 million for the most recent prior quarter, with the improvement largely driven by growth in total loans and higher yields on earning assets. Net interest income for the second quarter of 2022 was up $3.4 million, or 6.2% from the same period in 2021. Net interest income for the current quarter included $873,000 of net deferred loan fees associated with PPP loans, down from net deferred loan fees of $2.0 million for the quarter ended March 31, 2022, and $1.9 million in the second quarter of 2021
• Non-interest income of $18.9 million for the second quarter of 2022 and $38.9 million for the year-to-date period were both up slightly from the same periods in 2021.
• Average loans for the quarter ended June 30, 2022, were down $155.3 million, or 3.0%, compared to the same period in 2021. The decrease in average loans was mainly in commercial loans and driven by a decrease in PPP loans from $259.0 million for the quarter ended June 30, 2021, compared to $4.0 million in the current quarter.
Tompkins Financial implemented a payment deferral program in 2020 to assist both consumer and business borrowers experiencing financial hardship due to COVID-19. As of June 30, 2022, total loans that continued in a deferral status amounted to approximately $1.8 million, representing 0.04% of total loans compared to 2.5% on June 30, 2021. On June 30, 2021, total loans in deferral status totaled $129.4 million.
A total of 5,140 applications for PPP loans were funded, totaling $694.1 million in 2020 and 2021. Of the PPP loans funded, approximately $690.8 million have been forgiven by the Small Business Administration under the terms of the program as of June 30, 2022, or paid back by the borrower. As of June 30, 2022, there were 20 outstanding PPP loans totaling approximately $3.3 million.
Year-to-date
For the year-to-date period that ended June 30, 2022, diluted earnings per share were $3.05, down 6.4% from $3.26 for the same year-to-date period in 2021. Year-to-date net income was $44.1 million for the six-month period ended June 30, 2022, down $4.3 million or 8.9%, when compared to $48.5 million for the same period in 2021. Similar to the quarterly results, the year-todate net income variance was primarily attributable to the provision for credit losses, which was an expense of $336,000 in 2022, versus a credit of $4.9 million in 2021, resulting in a pretax variance of $5.2 million.