Tompkins Financial posts profit

Mahopac National Bank”™s parent company, Ithaca-based Tompkins Financial, reported second-quarter net income of $7.4 million, compared with $7.1 million for the same period in 2008.

Had the Federal Deposit Insurance Corp.”™s special assessment been excluded from the 2009 results, second quarter earnings would have shown an increase of 16.4 percent over 2008, according to the bank.

“Considering the significantly higher FDIC premiums in 2009, we”™re pleased to have achieved growth over the comparable period in 2008,” said Stephen Romaine, Tompkins”™ president and CEO. “We continued to see strong growth in net interest income over 2008, driven by an improved net interest margin and growth in average earning assets. We successfully raised $18.6 million of capital through a trust preferred securities offering during the second quarter of this year. This was accomplished in a difficult market … and our financial strength allowed us to raise this capital at an after-tax rate that is less expensive than the government”™s Troubled Assets Relief Program.”

Highlights of Tompkins”™ second quarter and year-to-date include net interest income up 21.2 percent from the same quarter last year, and up 2.5 percent over the first quarter of this year. Net interest income ending June 20, was $52.4 million, an increase of 26 percent over the same period a year earlier. Total loans were $8.1 billion on June 20, up 11.4 percent from June 20, 2008, but remaining relatively flat from Dec. 31, 2008.

 

The provision for loan and lease losses increased to $2.4 million in the second quarter of this year compared with $1.2 million a year earlier. An increase in net charge-offs and nonperforming assets, as well as general economic conditions, all contributed to the increased provision expense for 2009”™s second quarter.

 

“Weak economic conditions continue to be a challenge to our company and our customers,” Romaine said. “Although we have seen some deterioration in asset quality, our nonperforming assets and net charge-offs remain significantly below national averages.” Tompkins, continued Romaine, has committed additional resources to monitoring the credit portfolio, allowing the company to have further confidence in its ability to manage current stress in its portfolio. “A continuation or worsening of the current economic situation may result in further declines in asset quality measures and increase in loan losses,” he said.

“While we are pleased with our performance in 2009, weak economic conditions, high unemployment rates, state budget deficits, volatile interest rates and uncertain stock market conditions will continue to be a challenge,” Romaine said. “By remaining committed to long-term results, building diversified revenue sources and providing high quality financial solutions to our clients, Tompkins is positioned to perform well in these challenging times.”

Tompkins operates 34 branches in New York state markets served by its subsidiary banks ”“ Mahopac National Bank, The Bank of Castile and Tompkins Trust Co. In the most recent edition of US Banker magazine, Tompkins was listed as having the 15th highest average return to shareholders over the most recent 3 years among all mid-size banks in the country.

Tompkins Financial Corporation is traded on the NYSE Amex as TMP.