The parent company of Tompkins VIST Bank reported diluted earnings per share of $1.45 for the third quarter, compared to $1.63 reported for the third quarter of 2020. Net income for the third quarter was $21.3 million, compared to $24.2 million for the same period in 2020.
Ithaca, N.Y.-based Tompkins Financial Corp. said the quarterly results were negatively impacted by approximately $4.1 million, or 21 cents per share, of nonrecurring expenses related to the prepayment of borrowings and the redemption of trust preferred securities.
“Though these transactions had a negative impact on current period earnings, they are expected to have a favorable impact on future earnings by way of reduced interest expense,” Tompkins said in a press release.
For the year-to-date period ended Sept. 30, diluted earnings per share were $4.72, up 31.5% from $3.59 for the same year-to-date period in 2020. Year-to-date net income was $69.8 million for the nine month period ended September 30, 2021, up 30.2% compared to $53.6 million for the same period in 2020.
“We are pleased to report record earnings performance through the first nine months of 2021,” Tompkins President and CEO, Stephen Romaine said in a statement. “The third quarter of 2021 was down from the same quarter last year due to some nonrecurring expenses related to discretionary debt restructuring transactions. Despite higher expenses related to these transactions, several positive revenue trends were noted during the quarter, including growth in both net interest income and noninterest income when compared to the second quarter this year.”
Some highlights from the quarter:
- Net interest income was $56.1 million for the third quarter, up from $54.8 million reported in the second quarter, and down from $58.3 million reported in the same quarter of 2020. Net interest income in the third quarter of 2021 included a $1.2 million purchase accounting charge related to the redemption of $10 million in trust preferred securities. Net interest income for the second quarter of 2021 included a $650,000 purchase accounting charge related to the redemption of $5.2 million in trust preferred securities.
- Total loans at Sept. 30 were $5.1 billion compared to $5.4 billion at Sep. 30, 2020, and $5.3 billion at year end 2020. The $301.5 million change in total loans reflected a decline of $322.1 million in loans under the U.S. Small Business Administration’s Paycheck Protection Program at the end of the third quarter of 2021 compared to the end of the third quarter of 2020.
- Noninterest income for the quarter was $20.9 million, reflecting an increase of 10.6% over the second quarter of 2021, and 10.4% over the third quarter of 2020.
Source: Berkshire mont