It was a record year for Tompkins VIST Bank’s parent company.
For the year ended Dec. 31, Ithaca, N.Y.-based Tompkins Financial Corp. reported record diluted earnings per share of $6.05, up 16.4% from the previous year. Net income for 2021 was $89.3 million, an increase of $11.7 million compared to the same period in 2020.
Results for 2020 included a $16.8 million provision for credit losses recognized in the first quarter reflecting economic stress due to the COVID-19 pandemic.
For the fourth quarter, Tompkins reported diluted earnings per share of $1.33, down 17.4% compared to $1.61 reported in the same quarter of 2020. Net income for the fourth quarter of 2021 was $19.5 million, a $4.5 million decrease.
“Earnings per share for the quarter were down from the same period last year largely due to higher provision for credit losses in the current period, which included the charge-off of a commercial real estate relationship that was heavily impacted by pandemic related economic shut downs,” Tompkins President and CEO Stephen Romaine said in a statement. “Despite the loss recognized during the quarter, other credit quality metrics showed improvement from the most recent prior quarter, including reductions in nonperforming loans and loans in deferral status.”
Highlights for the quarter included:
Total loans were $5.1 billion compared to $5.3 billion at year-end 2020, which was driven by a decline of $220 million in loans under the U.S. Small Business Administration’s Paycheck Protection Program at year-end 2021 compared to year-end 2020. Total loans, exclusive of PPP loan balances, were up for the second consecutive quarter.
Total nonperforming loans declined by $14.6 million compared to 2020, while the ratio of total nonperforming loans and leases to total loans and leases dropped to 0.61% at year-end 2021 compared to 0.87% at year-end 2020.
Total noninterest-bearing deposits were up 10.7% compared to 2020 and represented 31.5% of total deposits as of Dec. 31.
Total revenue of $302.6 million was up 1.2% over the same period last year, benefiting from growth in fee income business lines including insurance, wealth management, and card services.
Net interest income was $57.8 million for both the fourth quarter of 2021 and 2020. Net interest income was $223.8 million for year-to-date 2021, down from $225.3 million reported for the same period in 2020. Net interest income in 2021 included a $1.9 million purchase accounting charge related to the redemption of $15.2 million in trust preferred securities.
Average loans for the year were in line with average loans for the year ended Dec. 31, 2020. Average loan yields for the year were down 22 basis points compared to 2020, which reflects the impact of reductions in market interest rates in 2021 and 2020.
Average total deposits for 2021 were up $735.3 million, or 12% compared to 2020. Average noninterest bearing deposits for 2021 were up $343.3 million or 19.6% compared to 2020. Average deposit balances benefited from PPP loan originations, the proceeds of which were primarily deposited in Tompkins checking accounts.
Tompkins Financial approved payment of a regular quarterly cash dividend of 57 cents per share, payable on Feb. 15 to common shareholders of record on Feb. 8. The dividend amount represents an increase of 3 cents or 5.3% over the dividend paid in the first quarter of 2021.
Source: Berkshire mont
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