Tompkins Financial Corporation Reports Record Earnings Per Share for the Fourth Quarter of 2025

Key Takeaways:

• Tompkins reported a 389.1% increase in Q4 2025 diluted EPS, reaching $6.70.
• The sale of Tompkins Insurance Agencies, Inc. generated a $188.2 million pre-tax gain.
• A restructuring of securities at a $78.7 million pre-tax loss was designed to improve future yields.
• Net interest margin rose to 3.42%, compared to 2.93% a year ago.
• Capital ratios remained well above regulatory minimums, reflecting a robust financial position.

Record Fourth-Quarter Earnings

Tompkins Financial Corporation announced a dramatic increase in diluted earnings per share (GAAP) for the fourth quarter of 2025, reaching $6.70—an impressive rise of $5.33 from the prior year, representing a 389.1% jump. Net income similarly surged, climbing to $96.2 million and reflecting a 389.6% increase over the same period in 2024.

Strategic Actions Drive Results

A key driver of Tompkins’ strong fourth quarter was the sale of Tompkins Insurance Agencies, Inc. (TIA) to Arthur J. Gallagher & Co. for approximately $223.0 million in cash. The transaction delivered a pre-tax gain of $188.2 million, recognized in noninterest income. Additionally, the company sold $564.2 million of available-for-sale debt securities at a $78.7 million pre-tax loss. While the loss tempered immediate earnings, Tompkins expects future positive impact given that proceeds were reinvested into higher-yielding securities.

Loan and Deposit Growth

Both loans and deposits grew year-over-year, with total loans rising to $6.4 billion. Fourth-quarter loans increased by 2.5% from the previous quarter, representing an annualized rate of over 10%. Deposits stood at $6.9 billion at the end of 2025, marking a 7.2% climb from December 31, 2024. This growth in lending and deposit bases, combined with healthy interest spreads, helped net interest margin improve to 3.42% in the fourth quarter.

CEO’s Perspective

“We are pleased to report record quarterly net income and operating earnings for the fourth quarter of 2025,” said Tompkins President and CEO, Stephen Romaine. “During the fourth quarter of 2025, we announced the sale of Tompkins Insurance Agencies, Inc. and restructured our balance sheet, which we believe leaves us with continued momentum heading into 2026.”

Asset Quality and Capital

Tompkins’ asset quality remained stable. The allowance for credit losses stood at 0.89% of total loans and leases, slightly down from earlier levels but reflecting updated economic forecasts and improved loan performance. Nonperforming assets fell to 0.56% of total assets, down from 0.63% at the previous quarter-end. Underscoring its robust financial footing, Tompkins’ Tier 1 capital to average assets climbed to 10.62%, boosted by proceeds from the subsidiary sale.

Looking Ahead

The company maintains a strong capital position, well above regulatory minimums. With proceeds from its fourth-quarter activities, Tompkins Financial entered 2026 on sound financial footing and anticipates strategic investments to drive growth. The sale of TIA, according to management, enables the company to channel resources into developing its core banking segments, while higher-yielding securities and steady loan growth bode well for continued expansion in the coming year.