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Sep 30, 2023
Tompkins Q3 2023 Earnings Report
Reported a net loss due to the sale of available-for-sale debt securities, which is expected to improve securities revenue in the future.
Key Takeaways
Tompkins Financial Corporation reported a net loss of $33.4 million for Q3 2023, primarily due to an after-tax loss of $47.5 million from the sale of available-for-sale debt securities. However, the company anticipates improved securities revenue in future periods from reinvesting the proceeds at higher yields. Loan growth and deposit balances increased during the quarter.
Net loss of $33.4 million for the third quarter of 2023, impacted by after-tax losses from the sale of available-for-sale debt securities.
Annualized loan growth of 6.0% from the second to third quarter of 2023.
Total deposits increased by $168.8 million, or 2.5%, from June 30, 2023.
Securities revenue is expected to improve by approximately $15.4 million over the next twelve months due to balance sheet repositioning.
Forward Guidance
Tompkins Financial Corporation anticipates improved securities revenue due to balance sheet repositioning, with an estimated increase of approximately $15.4 million over the next twelve months.
Positive Outlook
- Improved securities revenue expected over the next twelve months.
- Healthy capital and liquidity levels.
- Favorable loan growth trends.
- Increased deposit balances.
- Stable loan to deposit ratio.
Challenges Ahead
- Challenging economic environment for the banking industry.
- Net loss reported for the third quarter of 2023.
- Negative impact from the sale of available-for-sale debt securities.
- Decrease in net interest income and net interest margin.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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