Tompkins Financial (TMP) prints $2.04 Q2 2026 EPS for third straight record quarter, raises dividend 13%
Diluted EPS of $2.04 for the second quarter of 2026 put Tompkins Financial Corporation (NYSE American: TMP) in record territory for a third straight quarter, up 36.0% from Q2 2025 and 12.1% above Q1 2026. Net income of…
Diluted EPS of $2.04 for the second quarter of 2026 put Tompkins Financial Corporation (NYSE American: TMP) in record territory for a third straight quarter, up 36.0% from Q2 2025 and 12.1% above Q1 2026. Net income of $29.3 million rose $7.8 million from the year-ago period. The board approved a dividend payable in Q3 2026 at a level 13% above the Q3 2025 payment.
Net interest income anchors the result
Net interest income of $74.0 million for the quarter advanced $13.9 million or 23.0% from Q2 2025, with net interest margin holding at 3.58%, flat with Q1 2026 and 50 basis points above the year-ago 3.08%. Average yield on interest-earning assets was 5.13%, up 34 basis points year over year. Average cost of funds of 1.68% fell 16 basis points over the same span.
Period-end loans at June 30, 2026 rose $424.5 million or 6.9% from a year earlier. The sequential gain of $119.2 million works out to 7.4% annualized, with growth concentrated in commercial real estate and commercial and industrial portfolios. Total deposits ended the quarter at $7.0 billion, up $313.3 million or 4.7% from June 30, 2025.
Noninterest income and expense: the TIA effect
Noninterest income of $13.1 million dropped $9.4 million or 41.7% from Q2 2025. The shortfall is a base effect. The Q4 2025 sale of subsidiary Tompkins Insurance Agencies, Inc. removed $9.6 million of insurance revenue from the prior-year comparison. Wealth management fees climbed $265,000 or 5.3% and card service income rose $146,000 or 4.6% year over year, providing a partial offset.
Noninterest expense fell to $47.1 million, down $4.6 million or 8.8% from Q2 2025. Salaries and benefits dropped $4.7 million or 14.0%, driven by the TIA exit, with merit increases and higher benefit costs absorbing part of that gain.
Capital and what to watch
Tier 1 capital to average assets reached 10.69% at June 30, 2026, up from 10.58% at March 31, 2026 and 9.36% a year earlier. Income tax expense of $9.2 million carried a 24.0% effective rate for the quarter.
Year-to-date diluted EPS of $3.86 on net income of $55.4 million compares to $2.87 and $41.2 million for the first half of 2025. The Q3 2026 dividend payment, set 13% above the Q3 2025 level, is the next confirmable event on the tape.