Tompkins Financial Corporation Reports Record First Quarter Financial Results

ITHACA, N.Y.--( BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.82 for the first quarter of 2026, up $0.45 or 32.8% compared to the first quarter of 2025 and down $4.88 per share or 72.8% compared to the fourth quarter of 2025. Net income for the first quarter of 2026 was $26.1 million, up $6.4 million or 32.5% from the first quarter of 2025 and down $70.2 million or 72.9% compared to the immediate prior quarter. As previously reported, net income for the fourth quarter of 2025 included income related to the sale of Tompkins Insurance Agencies, Inc. ("TIA"), partially offset by the loss on the sale of available-for-sale debt securities. Excluding these items, the Company had operating diluted earnings per share (non-GAAP) of $1.78, and operating net income (non-GAAP) of $25.6 million for the fourth quarter of 2025. Reconciliations of adjusted earnings per share to diluted earnings per share and adjusted net income to net income can be found on page 12 of this press release.

Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report record first quarter 2026 earnings, building on the record results achieved in the fourth quarter of 2025. Our healthy levels of loan and deposit growth and our expanding net interest margin continued to support improving profitability in the first quarter. Our balance sheet remains flexible with strong capital and liquidity. The momentum in our earnings and the strength of our balance sheet position us well as we look forward to our future."

SELECTED HIGHLIGHTS FOR THE PERIOD:

NET INTEREST INCOME

Net interest income was $71.9 million for the first quarter of 2026, up $2.8 million or 4.1% compared to the fourth quarter of 2025, and up $15.2 million or 26.8% compared to the first quarter of 2025. The increase in net interest income compared to both periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.

Net interest margin was 3.57% for the first quarter of 2026, compared to 3.42% reported for the fourth quarter of 2025, and 2.98% reported for the first quarter of 2025. The increase in net interest margin reflects growth in average loan balances, improved yields on average earning assets, and lower funding costs. Average yield on securities for the first quarter of 2026 was up 51 basis points over the fourth quarter of 2025 and up 113 basis points over the first quarter of 2025, mainly a result of the previously reported reinvestment within the portfolio at higher yields during the fourth quarter of 2025.

Average loans for the quarter ended March 31, 2026 were up $98.3 million, or 1.6% (2.0% annualized), over the most recent prior quarter, and were up $409.5 million, or 6.8%, compared to the same prior year period. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended March 31, 2026 was 5.09%, an increase of 11 basis points from 4.98% for the quarter ended December 31, 2025, and up 40 basis points from 4.69% for the quarter ended March 31, 2025.

Average total deposits of $7.0 billion for the first quarter of 2026, were in line with the most recent prior quarter, and up $344.4 million, or 5.2%, compared to the first quarter of 2025. The cost of interest-bearing deposits of 2.06% for the first quarter of 2026 was down 12 basis points compared to the most recent prior quarter, and down 17 basis points from the first quarter of 2025. The ratio of average noninterest bearing deposits to average total deposits for the first quarter of 2026 was 26.6% compared to 27.4% for the fourth quarter of 2025, and 26.9% for the first quarter of 2025. The average cost of interest-bearing liabilities for the first quarter of 2026 was 2.21%, down 9 basis points when compared to the most recent prior quarter, and down 23 basis points from the same period in 2025.

NONINTEREST INCOME

Noninterest income of $11.8 million for the first quarter of 2026 was down $13.2 million or 52.7% compared to the first quarter of 2025. The decrease in noninterest income is mainly a result of a decrease of $11.6 million in insurance revenue when compared to the first quarter of 2025, due to the sale of TIA in the fourth quarter of 2025. The first quarter of 2025 also included a $1.9 million gain on the sale of other real estate owned. For the first quarter of 2026, investment services income was up $147,000 or 2.9% over the same period in 2025, while service charges on deposit accounts and card services income were in line with prior year.

NONINTEREST EXPENSE

Noninterest expense was $47.7 million for the first quarter of 2026, down $2.9 million or 5.7% compared to the first quarter of 2025. The decrease in noninterest expense included a decrease in salaries and wages and other employee benefits of $3.3 million or 10.4%, mainly due to the departure of employees in connection with the sale of TIA in the fourth quarter of 2025. Partially offsetting the decrease in salaries and wages and other employee benefits were annual merit increases and increased other employee benefit costs. Also contributing to the year-over-year decrease in noninterest expense were net occupancy expenses, down $115,000 or 3.2%, and amortization expense, down $84,000 or 100.0%. The decrease in noninterest expense for the first quarter of 2026 compared to the same period in 2025 was mainly due to the sale of TIA. Expenses related to TIA in the first quarter of 2025 included salaries and wages and other employee benefits of $6.0 million, net occupancy expense of premises of $279,000, furniture and fixture expense of $305,000, and amortization of intangible assets of $81,000.

INCOME TAX EXPENSE

Provision for income tax expense was $8.4 million for an effective rate of 24.4% for the first quarter of 2026, compared to $43.5 million for an effective rate of 31.1% for the most recent prior quarter, and $6.1 million for an effective rate of 23.7% for the first quarter of 2025. The effective tax rate in the fourth quarter of 2025 was impacted by the sale of TIA which resulted in a significant increase to pre-tax income and an adjustment for goodwill with no tax-basis.

ASSET QUALITY

The allowance for credit losses was 0.90% of total loans and leases at March 31, 2026, up from 0.89% at December 31, 2025, and down from 1.01% at March 31, 2025. The increase in the allowance for credit losses coverage ratio compared to year-end 2025 was mainly due to updated economic forecasts for unemployment for the quarter, as well as higher reserves for individually analyzed loans; while the decrease from March 31, 2025 was mainly due to lower reserves on individually analyzed loans. The ratio of the allowance to total nonperforming loans and leases was 113.06% at March 31, 2026, compared to 120.30% at December 31, 2025, and 85.85% at March 31, 2025.

Provision for credit losses for the first quarter of 2025 was $1.5 million compared to $977,000 for the fourth quarter of 2025, and $5.3 million for the first quarter of 2025. The provision expense in the first quarter of 2025 included $4.2 million for a specific reserve on an individually analyzed nonaccrual commercial real estate relationship. Net charge-offs for the three months ended March 31, 2026 were $775,000, compared to $3.3 million for the fourth quarter of 2025, and $733,000 for the first quarter of 2025. The fourth quarter of 2025 included a $2.4 million charge-off on one commercial real estate relationship totaling $7.4 million.

Nonperforming assets of $51.7 million represented 0.59% of total assets at March 31, 2026, up from $48.2 million or 0.56% of total assets at December 31, 2025, and down from $71.2 million or 0.87% of total assets at March 31, 2025. Loans past due 30-89 days totaled $5.9 million at March 31, 2026, $8.8 million at December 31, 2025, and $12.3 million at March 31, 2025.

Special Mention and Substandard loans and leases totaled $120.4 million at March 31, 2026, compared to $134.5 million reported at December 31, 2025, and $110.8 million reported at March 31, 2025.

CAPITAL POSITION

Capital ratios at March 31, 2026 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.78% at March 31, 2026, compared to 14.56% at December 31, 2025, and 13.28% at March 31, 2025. The ratio of Tier 1 capital to average assets was 10.58% at March 31, 2026, compared to 10.62% at December 31, 2025, and 9.31% at March 31, 2025.

During the first quarter of 2026, the Company repurchased 23,731 shares of common stock at an aggregate cost of $1.8 million. These shares were purchased under the Company's 2025 Stock Repurchase Plan.

LIQUIDITY POSITION

The Company's liquidity position at March 31, 2026 was consistent with its position at December 31, 2025. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank's Discount Window advances and Federal Home Loan Bank (FHLB) advances. The Company maintained ready access to liquidity of $1.6 billion, or 18.9% of total assets, at March 31, 2026.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank, which offers a full array of financial products and services, including commercial and consumer banking. Tompkins Community Bank provides wealth management services, including investment management, trust and estate, financial and tax planning services, under the Tompkins Financial Advisors brand. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "could", "should", "will", "would", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", as well as the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding capital expectations, growth, and the sufficiency of collateral to cover exposure related to special mention and substandard loans. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements and historical performance: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and other sources of liquidity; gross domestic product growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting public companies, banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and other federal, state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; changing supervisory and regulatory scrutiny of financial institutions; technological developments and changes; cybersecurity incidents and threats; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the geographic concentration of our business; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact, including market volatility, of national and global events, including the response to bank failures, war and geopolitical matters (including continuing or increasing hostilities in the Middle East and the war in Ukraine), tariffs and trade wars, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises, and the related financial stress on borrowers and changes to customer behavior and credit risk resulting from any of the foregoing. The Company does not undertake any obligation to update its forward-looking statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data)

As of

ASSETS

03/31/2026

12/31/2025

(Audited)

Cash and noninterest bearing balances due from banks

68,665

50,717

Interest bearing balances due from banks

102,784

82,100

Cash and Cash Equivalents

171,449

132,817

Available-for-sale debt securities, at fair value (amortized cost of $1,407,770 at March 31, 2026 and $1,391,379 at December 31, 2025)

1,388,910

1,382,068

Held-to-maturity debt securities, at amortized cost (fair value of $282,589 at March 31, 2026 and $283,860 at December 31, 2025)

312,545

312,528

Equity securities, at fair value

795

800

Loans held for sale

43,440

Total loans and leases, net of unearned income and deferred costs and fees

6,477,943

6,446,245

Less: Allowance for credit losses

58,108

57,671

Net Loans and Leases

6,419,835

6,388,574

Federal Home Loan Bank and other stock

27,189

32,307

Bank premises and equipment, net

71,000

72,418

Corporate owned life insurance

78,490

77,843

Goodwill

72,736

Accrued interest and other assets

152,758

152,737

Total Assets

8,695,761

8,668,268

LIABILITIES

Deposits:

Interest bearing:

Checking, savings and money market

3,889,995

3,742,402

Time

1,292,391

1,298,393

Noninterest bearing

1,871,786

1,896,967

Total Deposits

7,054,172

6,937,762

Federal funds purchased and securities sold under agreements to repurchase

118,133

95,569

Other borrowings

449,446

564,446

Other liabilities

127,269

132,114

Total Liabilities

7,749,020

7,729,891

EQUITY

Tompkins Financial Corporation shareholders' equity:

Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,420,973 at March 31, 2026; and 14,449,845 at December 31, 2025

1,443

1,446

Additional paid-in capital

297,181

299,206

Retained earnings

678,575

662,161

Accumulated other comprehensive loss

(26,098

)

(19,054

)

Treasury stock, at cost – 88,982 shares at March 31, 2026, and 104,492 shares at December 31, 2025

(4,360

)

(5,382

)

Total Equity

946,741

938,377

Total Liabilities and Equity

8,695,761

8,668,268

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data) (Unaudited)

Three Months Ended

03/31/2026

12/31/2025

03/31/2025

INTEREST AND DIVIDEND INCOME

Loans

87,123

87,372

78,630

Due from banks

166

211

175

Available-for-sale debt securities

13,702

11,509

8,729

Held-to-maturity debt securities

1,218

1,225

1,217

Federal Home Loan Bank and other stock

460

593

711

Total Interest and Dividend Income

102,669

100,910

89,462

INTEREST EXPENSE

Time certificates of deposits of $250,000 or more

4,478

4,527

4,507

Other deposits

21,531

23,318

22,143

Federal funds purchased and securities sold under agreements to repurchase

Other borrowings

4,781

3,983

6,109

Total Interest Expense

30,808

31,849

32,800

Net Interest Income

71,861

69,061

56,662

Less: Provision for credit loss expense

1,502

977

5,287

Net Interest Income After Provision for Credit Loss Expense

70,359

68,084

51,375

NONINTEREST INCOME

Insurance commissions and fees

3,079

11,599

Wealth management fees

5,266

5,053

5,119

Service charges on deposit accounts

1,795

1,819

1,805

Card services income

2,642

2,835

2,626

Gain on sale of TIA

188,241

Other income

2,136

3,451

3,869

Net gain (loss) on securities transactions

)

(78,715

)

Total Noninterest Income

11,834

125,763

25,032

NONINTEREST EXPENSE

Salaries and wages

21,948

29,630

24,977

Other employee benefits

6,807

6,642

7,100

Net occupancy expense of premises

3,455

3,102

3,570

Furniture and fixture expense

2,027

1,795

1,787

Other operating expense

13,489

12,966

13,173

Total Noninterest Expenses

47,726

54,135

50,607

Income Before Income Tax Expense

34,467

139,712

25,800

Income Tax Expense

8,393

43,464

6,121

Net Income Attributable to Tompkins Financial Corporation

26,074

96,248

19,679

Basic Earnings Per Share

1.83

6.74

1.38

Diluted Earnings Per Share

1.82

6.70

1.37

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

Quarter Ended

March 31, 2026

December 31, 2025

March 31, 2025

(dollar amounts in thousands)

Average

Balance

(QTD)

Interest

Average

Yield/Rate

Average

Balance

(QTD)

Interest

Average

Yield/Rate

Average

Balance

(QTD)

Interest

Average

Yield/Rate

ASSETS

Interest-earning assets

Interest-bearing balances due from banks

13,394

166

5.03

17,795

211

4.70

16,424

175

4.32

Securities 1

U.S. Government securities

1,636,770

14,435

3.58

1,595,043

12,244

3.04

1,598,785

9,441

2.39

State and municipal 2

81,218

536

2.68

81,613

537

2.61

85,893

554

2.62

Other Securities 2

3,305

6.01

3,298

6.25

3,275

6.56

Total securities

1,721,293

15,020

3.54

1,679,954

12,833

3.03

1,687,953

10,048

2.41

FHLBNY and FRB stock

29,016

460

6.43

24,113

593

9.76

31,983

711

9.01

Total loans and leases, net of unearned income 2,3

6,434,853

87,337

5.50

6,336,565

87,612

5.48

6,025,363

78,835

5.31

Total interest-earning assets

8,198,556

102,983

5.09

8,058,427

101,249

4.98

7,761,723

89,769

4.69

Other assets

382,767

313,860

294,855

Total assets

8,581,323

8,372,287

8,056,578

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits

Interest bearing checking, savings, & money market

3,823,812

15,589

1.65

3,779,290

16,695

1.75

3,682,318

16,093

1.77

Time deposits

1,285,701

10,420

3.29

1,282,009

11,150

3.45

1,159,039

10,557

3.69

Total interest-bearing deposits

5,109,513

26,009

2.06

5,061,299

27,845

2.18

4,841,357

26,650

2.23

Federal funds purchased & securities sold under agreements to repurchase

42,788

0.17

42,221

0.20

47,653

0.35

Other borrowings

491,310

4,781

3.95

380,920

3,983

4.15

561,983

6,109

4.41

Total interest-bearing liabilities

5,643,611

30,808

2.21

5,484,440

31,849

2.30

5,450,993

32,800

2.44

Noninterest bearing deposits

1,855,440

1,911,583

1,779,197

Accrued expenses and other liabilities

130,879

100,606

98,278

Total liabilities

7,629,930

7,496,629

7,328,468

Tompkins Financial Corporation Shareholders’ equity

951,393

875,658

728,110

Noncontrolling interest

Total equity

951,393

875,658

728,110

Total liabilities and equity

8,581,323

8,372,287

8,056,578

Interest rate spread

2.88

2.68

2.25

Tax-equivalent net interest income/margin on earning assets

72,175

3.57

69,400

3.42

56,969

2.98

Tax-equivalent adjustment

(314

)

(339

)

(307

)

Net interest income

71,861

69,061

56,662

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

Quarter-Ended

Year-Ended

Period End Balance Sheet

Mar-26

Dec-25

Sep-25

Jun-25

Mar-25

Dec-25

Securities

1,702,250

1,695,396

1,604,357

1,588,647

1,572,602

1,695,396

Total Loans

6,477,943

6,446,245

6,288,071

6,172,654

6,066,645

6,446,245

Allowance for credit losses

58,108

57,671

59,889

58,555

61,023

57,671

Total assets

8,695,761

8,668,268

8,468,731

8,373,818

8,199,653

8,668,268

Total deposits

7,054,172

6,937,762

7,053,070

6,715,795

6,753,502

6,937,762

Brokered deposits

109,712

114,391

145,223

138,787

99,763

114,391

Federal funds purchased and securities sold under agreements to repurchase

118,133

95,569

80,804

127,111

122,985

95,569

Other borrowings

449,446

564,446

444,866

672,696

493,247

564,446

Total equity

946,741

938,377

788,805

761,793

741,377

938,377

Average Balance Sheet

Average earning assets

8,198,556

8,058,427

7,967,674

7,875,490

7,761,723

7,916,783

Average assets

8,581,323

8,372,287

8,297,448

8,168,595

8,056,578

8,224,794

Average interest-bearing liabilities

5,643,611

5,484,440

5,530,563

5,503,624

5,450,993

5,492,601

Average equity

951,393

875,658

771,527

749,975

728,110

781,695

Share data

Weighted average shares outstanding (basic)

14,250,969

14,270,206

14,248,533

14,246,395

14,246,140

14,252,810

Weighted average shares outstanding (diluted)

14,347,514

14,356,680

14,345,219

14,320,125

14,319,440

14,335,358

Period-end shares outstanding

14,392,337

14,420,495

14,431,300

14,430,985

14,433,873

14,420,495

Common equity book value per share

65.78

65.07

54.66

52.79

51.36

65.07

Tangible book value per share (Non-GAAP)**

60.73

60.03

48.19

46.31

44.88

60.03

**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP.

Income Statement

Net interest income

71,861

69,061

63,878

60,130

56,662

249,731

Provision for credit loss expense

1,502

977

2,490

2,780

5,287

11,534

Noninterest income

11,834

125,763

23,564

22,512

25,032

196,871

Noninterest expense

47,726

54,135

53,847

51,623

50,607

210,212

Income tax expense

8,393

43,464

7,432

6,768

6,121

63,785

Net income attributable to Tompkins Financial Corporation

26,074

96,248

23,673

21,471

19,679

161,071

Basic earnings per share 4

1.83

6.74

1.66

1.51

1.38

11.30

Diluted earnings per share 4

1.82

6.70

1.65

1.50

1.37

11.24

Nonperforming Assets

Nonaccrual loans and leases

51,271

47,794

52,805

52,325

70,891

47,794

Loans and leases 90 days past due and accruing

124

146

166

187

146

Total nonperforming loans and leases

51,395

47,940

52,971

52,491

71,078

47,940

OREO

269

229

Total nonperforming assets

51,664

48,169

52,971

52,572

71,159

48,169

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Mar-26

Dec-25

Sep-25

Jun-25

Mar-25

Dec-25

Loans and leases 30-89 days past due and

accruing

5,874

8,806

7,841

5,857

12,285

8,806

Loans and leases 90 days past due and accruing

124

146

166

187

146

Total loans and leases past due and accruing

5,998

8,952

8,007

6,023

12,472

8,952

Allowance for Credit Losses

Balance at beginning of period

57,671

59,889

58,555

61,023

56,496

Provision for credit losses

1,212

1,064

2,454

2,786

5,260

11,564

Net loan and lease charge-offs (recoveries)

775

3,282

1,120

5,254

733

10,389

Allowance for credit losses at end of period

58,108

57,671

59,889

58,555

61,023

57,671

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

1,433

1,520

1,484

1,490

1,463

Provision (credit) for credit losses

290

(87

)

(30

)

Allowance for credit losses at end of period

1,723

1,433

1,520

1,484

1,490

1,433

Loan Classification - Total Portfolio

Special Mention

66,104

100,717

88,398

40,048

34,790

100,717

Substandard

54,331

33,764

55,762

56,740

75,980

33,764

Ratio Analysis

Credit Quality

Nonperforming loans and leases/total loans and leases

0.79

0.74

0.84

0.85

1.17

0.74

Nonperforming assets/total assets

0.59

0.56

0.63

0.87

0.56

Allowance for credit losses/total loans and leases

0.90

0.89

0.95

1.01

0.89

Allowance/nonperforming loans and leases

113.06

120.30

113.06

111.55

85.85

120.30

Net loan and lease losses (recoveries) annualized/total average loans and leases

0.05

0.21

0.07

0.34

0.05

0.17

Capital Adequacy

Tier 1 Capital (to average assets)

10.58

10.62

9.41

9.36

9.31

10.62

Total Capital (to risk-weighted assets)

14.78

14.56

13.27

13.15

13.28

14.56

Profitability (period-end)

Return on average assets *

1.23

4.56

1.13

1.05

0.99

1.96

Return on average equity *

11.11

43.61

12.17

11.48

10.96

20.61

Net interest margin (TE) *

3.57

3.42

3.20

3.08

2.98

3.17

Average yield on interest-earning assets*

5.09

4.98

4.90

4.79

4.69

4.84

Average cost of deposits*

1.51

1.58

1.64

1.63

1.62

Average cost of funds*

1.67

1.71

1.83

1.84

1.80

* Quarterly ratios have been annualized

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.

Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP)

Quarter-Ended

Year-Ended

Mar-26

Dec-25

Sep-25

Jun-25

Mar-25

Dec-25

Common equity book value per share (GAAP)

65.78

65.07

54.66

52.79

51.36

65.07

Total common equity

946,741

938,377

788,805

761,793

741,377

938,377

Less: Goodwill and intangibles*

72,766

93,405

93,503

93,586

72,766

Tangible common equity (Non-GAAP)

873,975

865,611

695,400

668,290

647,791

865,611

Ending shares outstanding

14,392,337

14,420,495

14,431,300

14,430,985

14,433,873

14,420,495

Tangible book value per share (Non-GAAP)

60.73

60.03

48.19

46.31

44.88

60.03

*The decline in goodwill for the fourth quarter and full year 2025 over the prior periods shown in the table reflects the sale of TIA.

Reconciliation of Operating or Adjusted Net Income Available to Common Shareholders/Operating or Adjusted Diluted Earnings Per Share (Non-GAAP) to Net Income Available to Common Shareholders/Diluted Earnings Per Share (GAAP); Operating or Adjusted Return on Average Assets, Operating or Adjusted Return on Average Equity and Adjusted Operating Return on Average Shareholders' Tangible Common Equity (Non-GAAP) to Return on Average Assets and Return on Average Equity (GAAP)

QTD

(In thousands, except per share data)

03/31/2026

12/31/2025

03/31/2025

Net income available to common shareholders

26,074

96,248

19,679

Less: income attributable to unvested stock-based compensation awards

Net earnings allocated to common shareholders (GAAP)

26,074

96,248

19,679

Diluted earnings per share (GAAP)

1.82

6.70

1.37

Adjustments for non-operating income and expense:

(Gain) loss on sale of investment securities

78,721

(Gain) from sale of Tompkins Insurance Agencies, Inc.

(183,902

)

Total adjustments

(105,181

)

Tax expense

(34,509

)

Total adjustments, net of tax

(70,672

)

Operating or adjusted net income (Non-GAAP)

26,074

25,576

19,679

Weighted average shares outstanding (basic)

14,250,969

14,270,206

14,246,140

Weighted average shares outstanding (diluted)

14,347,514

14,356,680

14,319,440

Operating or adjusted basic earnings per share (Non-GAAP)

1.83

1.79

1.38

Operating or adjusted diluted earnings per share (Non-GAAP)

1.82

1.78

1.37

Net income available to common shareholders

26,074

96,248

19,679

Operating or adjusted net income (Non-GAAP)

26,074

25,576

19,679

Average total assets

8,581,323

8,372,287

8,056,578

Return on average assets (GAAP)

1.23

4.56

0.99

Operating or adjusted return on average assets (Non-GAAP)

1.23

1.21

0.99

Net income available to common shareholders

26,074

96,248

19,679

Operating or adjusted net income (Non-GAAP)

26,074

25,576

19,679

Average total equity

951,393

875,658

728,110

Return on average equity (GAAP)

11.11

43.61

10.96

Operating or adjusted return on average equity (Non-GAAP)

11.11

11.59

10.96

Operating or adjusted net income (Non-GAAP)

26,074

25,576

19,679

Average Tompkins Financial Corporation shareholders' equity

951,393

875,658

728,110

Amortization of intangibles

Tax expense

Amortization of intangibles, net of tax

Operating or adjusted net income (Non-GAAP)

26,074

25,597

19,679

Average Tompkins Financial Corporation shareholders' equity

951,393

875,658

728,110

Average goodwill and intangibles

72,766

79,494

93,637

Average Tompkins Financial Corporation shareholders' tangible common equity (Non-GAAP)

878,627

796,164

634,473

Operating or adjusted return on average shareholders' tangible common equity (Non-GAAP)

12.04

12.76

12.58

1 Average balances and yields on available-for-sale securities are based on historical amortized cost.