Tompkins Financial raises dividend 13.8% as annual net income climbs 21%
Key Facts
Tompkins Financial reported third-quarter results on Friday, October 23, 2026, saying its board had approved another increase in the cash dividend, payable in the fourth quarter. The increase represents 13.8% compared with the dividend paid in the fourth quarter of 2025, according to a company statement filed with the U.S. Securities and Exchange Commission. The statement did not specify the new dividend amount; the previous dividend, announced in July, was $0.70 per share, up 4.5% from the second quarter of 2026. CEO Stephen Romaine said the increase reflects strong earnings and capital. The results put the decision in the context of annual earnings growth, despite declines in net income and earnings per share compared with the second quarter.
Net income was $28.7 million in the third quarter, up $5.0 million, or 21.0%, from the same period in 2025, but down $650,000, or 2.2%, from the previous quarter. Diluted earnings per share were $2.00, an increase of $0.35, or 21.2%, year over year. On a quarterly basis, earnings per share fell $0.04, or 2.0%, compared with the second quarter. The comparison shows that annual gains did not prevent a modest decline in both measures from the immediately preceding period. The company attributed part of the performance growth to higher net interest income, supported by an improved net interest margin and an increase in average loans.
Net interest income was $77.3 million, up $13.4 million, or 21.0%, from the third quarter of 2025. The company attributed the increase to an improved net interest margin and growth in average loans. It also said the year-over-year margin expansion was linked to higher average loans, improved asset yields and lower funding costs. Average loans rose $119.1 million, or 1.8%, from the previous quarter and increased $428.0 million, or 6.9%, compared with the third quarter of 2025. The company attributed this growth to lending for commercial real estate and commercial and industrial activities.
On the funding side, total deposits were $7.4 billion as of September 30, 2026. They increased $379.9 million, or 5.4%, from the end of the previous quarter and $356.0 million, or 5.0%, from their level on September 30, 2025. Available liquidity was $1.5 billion at the end of September, equal to 17.1% of total assets. This coincided with growth in loans and deposits, which the CEO cited as elements of operating momentum. Romaine said growth in these items and a wider net interest margin support the company's performance.
By contrast, noninterest income fell to $12.6 million, down $11.0 million, or 46.7%, from the third quarter of 2025. The company said the decline was mainly due to an $11.3 million drop in insurance revenue following the sale of its subsidiary Tompkins Insurance Agencies in the fourth quarter of 2025. This reflects the absence of some revenue included in the comparison period, alongside higher net interest income. The provision for credit losses also rose to $3.0 million in the third quarter, compared with $1.5 million in the second quarter and $2.5 million in the third quarter of 2025. The company attributed the quarterly increase mainly to loan growth and specific provisions for loans under individual evaluation.