Tompkins Financial Corporation reported significant financial growth for the fiscal year ending December 31, 2024, with net income reaching $70.9 million, a substantial increase of 645.4% compared to $9.5 million in 2023. This surge in profitability translated to diluted earnings per share of $4.97, up from $0.66 in the previous year. The remarkable performance was largely attributed to a favorable shift in net interest income, which increased by 0.8% to $211.1 million, alongside a notable recovery in noninterest income, which soared to $88.1 million from just $10.2 million in 2023, primarily due to the prior year's losses from the sale of available-for-sale debt securities.
The company’s total assets grew to $8.1 billion, marking a 3.7% increase from the previous year. Total loans increased by 7.4% to $6.0 billion, driven by growth in commercial real estate and commercial and industrial loans. Conversely, total securities decreased by 10.7% to $1.5 billion, reflecting strategic decisions regarding asset management. Deposits also saw a modest increase of 1.1%, totaling $6.5 billion, while borrowings rose significantly by 31.3% to $790.2 million, indicating a shift in funding strategies to support loan growth.
In terms of operational metrics, the company reported a return on average equity (ROE) of 10.33% and a return on average assets (ROA) of 0.90%, both of which exceeded the peer averages. The allowance for credit losses (ACL) was $56.5 million, representing 0.94% of total loans, reflecting a proactive approach to managing credit risk amid loan growth. The company also identified 16 commercial relationships totaling $41.2 million as potential problem loans, indicating a cautious stance on credit quality.
Strategically, Tompkins Financial continues to focus on organic growth and potential acquisitions to enhance its market presence. The company has streamlined its operations by consolidating its banking subsidiaries into Tompkins Community Bank, which now operates 54 branches across New York and Pennsylvania. The management is also investing in digital services to meet evolving customer expectations while maintaining a commitment to personalized service. Looking ahead, the company anticipates continued growth driven by its diversified financial services and a strong capital position, with a focus on navigating the challenges posed by changing economic conditions and regulatory environments.
About TOMPKINS FINANCIAL CORP
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