Tompkins Community Bank parent company reports earnings

The parent company of Tompkins Community Bank recently released its third quarter earnings — reporting a loss of $33.4 million for the quarter, which ended Sept. 30.

Ithaca, N.Y.-based Tompkins Financial Corp. reported a loss of $2.35 per diluted share for the period. Diluted earnings per share for the third quarter of 2022 were $1.48.

The quarterly results were negatively impacted by the sale of $429.6 million of available-for-sale debt securities, the company said in a press release, which resulted in an after-tax loss on the sale of securities of $47.5 million.

Although the sale resulted in an operating loss in the third quarter of 2023, the company said the transaction is expected to favorably impact securities revenue in future periods.

“During the quarter we elected to proactively reposition the balance sheet which will improve securities revenue and we expect that the improved revenue will exceed the value of the loss recognized in the third quarter through time,” Stephen Romaine, Tompkins president and CEO, said in a statement. “We estimate securities revenue to improve by approximately $15.4 million over the next twelve months.

Tompkins also reported a net income loss of $5.5 million, or 39 cents per diluted share for the year-to-date period that ended Sept. 30. Year-to-date results were also negatively impacted by after-tax losses on the sale of securities totaling $52.9 million, a $3.69 loss per diluted share.

Highlights from the quarter:

• Total loans were up $82.5 million in the third quarter, or 1.5% compared to the second quarter, and up $226.4 million, or 4.3%, from the same period in 2022.

• Total deposits were $6.6 billion for the quarter, up $168.8 million, or 2.5% from June 30, 2023, and down $313.3 million, or 4.5%, from September 30, 2022.

• Tompkins reported net interest income for the quarter of $51.0 million, down from $51.9 million in the second quarter of 2023. The decrease was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment, according to the release.

“While the economic environment remains challenging for the banking industry, our capital and liquidity levels remain healthy and well positioned to meet the needs of our customers,” Romaine said, adding the company continued to see favorable growth trends.

Tompkins reported its earnings Friday afternoon.