Tompkins Financial Q1 income falls 9.2%

Tompkins Financial Corp. has reported diluted earnings per share of $1.60 for the first quarter of 2022. That’s down 7% from the diluted earnings per share of $1.72 reported in the first quarter of 2021.

The Ithaca, N.Y.-based parent of Tompkins Community Bank (formerly Tompkins VIST Bank) released its earnings report for the first quarter on Monday, May 2.

Net income for the first quarter of 2022 was $23.3 million, a decrease of 9.2% from $25.6 million for the same period in 2021.

Tompkins Financial cites reduced income from Paycheck Protection Program loans and a smaller recapture to the provision for credit losses in the current quarter as primary contributors to the reduced earnings when compared to the same quarter last year.

“Though net income for the first quarter of 2022 was below the same quarter last year, it exceeded the net income reported in each of the three most recent prior quarters,” Tompkins President and CEO Stephen Romaine said in a statement. “Results for the first quarter of 2022 included several favorable trends when compared to the most recent prior quarter and the same quarter last year. These included an improved net interest margin, higher fee-based revenue, and lower past due and nonperforming loan balances.”

Selected highlights for the quarter included:

• Total deposits of $7.0 billion at March 31, 2022, were up $225.3 million, or 3.3%, over Dec. 1, 2021 and up $70.2 million, or 1.0%, over March 31, 2021.

• Total loans on March 31, 2022, were $5.1 billion, down $12.0 million from Dec. 31, 2021. The decrease was driven by a $47.2 million decline in Paycheck Protection Program loans, compared to year-end 2021. Total loans, exclusive of Paycheck Protection Program loan balances, were higher than the prior quarter for the third consecutive quarter.

• Provision for credit losses was a recapture of $520,000 for the first quarter of 2022, compared to a recapture of $1.8 million for the first quarter of 2021.

• Total nonperforming loans totaled $30.3 million, or 0.60% of total loans, on March 31, 2022, compared to $31.2 million, or 0.61% of total loans, on December 31, 2021, and $47.7 million, or 0.90% of total loans, at March 31, 2021.

Net interest income was $56.6 million for the first quarter of 2022, an increase of $1.6 million over the same period in 2021. Net interest income for the current quarter included $2.0 million of net deferred loan fees associated with Paycheck Protection Program loans, compared to net deferred loan fees of $2.8 million in the first quarter of 2021.

Noninterest income of $20.0 million for the first quarter of 2022 was in line with the same period in 2021, and represented 26.1% of total revenues, according to Tompkins Financial.

Average loans for the quarter ended March 31, 2022, were down $235.3 million, or 4.5%, compared to the same period in 2021. The decrease in average loans was mainly in commercial loans and was driven by a decrease in average Paycheck Protection Program loans.

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 March 31, total loans that continued in a deferral status amounted to approximately $2.6 million, representing 0.05% of total loans. As of March 31, total loans in deferral status totaled $195.6 million.

The company began accepting applications for Paycheck Protection Program loans on April 3, 2020, and continued through the initial program end date in 2020. When the program reopened on Jan. 19, 2021, the company began accepting both first draw and second draw applications. The 2021 program funding closed for new applications on May 12, 2021. In 2020 and 2021, the company funded a total of 5,140 applications totaling $694.1 million.

Of the Paycheck Protection Program loans the company funded, approximately $663.9 million had been forgiven by the Small Business Administration under the terms of the program as of March 31, 2022. Total net deferred fees on the remaining balance of Paycheck Protection Program loans amounted to $1 million as of March 31, 2022.

Tompkins Financial Corp. consolidated its four banks under one charter on Jan. 1, 2022. The banking affiliate is now known as Tompkins Community Bank. As the organization makes the transition to the new name, systems will be updated May 6-8, with all Tompkins locations closed on Saturday, May 7.

On Monday, May 9, the Tompkins Community Bank look, website and app will be live, according to information on the bank’s website.