Tompkins Financial Corp. (NYSE: TMP) announced diluted earnings per share of $1.65 for the third quarter of 2025, a 10.0% increase from the prior quarter and a 26.9% rise from $1.30 in the same quarter last year. Net income reached $23.7 million, up 10.3% from Q2 2025 and 27.0% from Q3 2024. For the nine months ended September 30, 2025, diluted EPS was $4.52, a 25.9% increase from $3.59 in the prior year period, with net income totaling $64.8 million, up 26.6% from $51.2 million.
President and CEO Stephen Romaine attributed the performance to the strength of the team and balance sheet, highlighting net interest margin expansion and 7% growth in loans and deposits. Net interest margin improved to 3.20% in Q3 2025, up 12 basis points from the prior quarter and 41 basis points from Q3 2024. Total loans at September 30, 2025, were $115.4 million higher than June 30, 2025, and up $406.8 million year-over-year. Total deposits grew to $7.1 billion, up $337.3 million from the prior quarter and $475.2 million from a year ago.
Net interest income for Q3 2025 was $63.9 million, up 6.2% from Q2 2025 and 20.1% from Q3 2024, driven by margin improvement and loan growth. Noninterest income rose 0.8% to $23.6 million, mainly due to gains on loan sales. Noninterest expense increased 8.0% to $53.8 million, reflecting higher personnel costs and investments in future growth. The provision for credit losses was $2.5 million, compared to $2.2 million in Q3 2024.
Asset quality remained stable with the allowance for credit losses at 0.95% of total loans. Nonperforming assets decreased to $53.0 million, or 0.63% of total assets, down from $62.7 million a year ago. Capital ratios stayed well above regulatory minimums, with a Tier 1 capital to average assets ratio of 9.41%. The company maintained ready access to liquidity of $1.5 billion, or 17.8% of total assets.
More details are available at Tompkins Financial. The original release can be found on citybiz.
