Tompkins Financial Corporation Reports Improved Third 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 $1.65 for the third quarter of 2025, up 10.0% from the immediate prior quarter, and up 26.9% from the diluted earnings per share of $1.30 reported for the third quarter of 2024. Net income for the third quarter of 2025 was $23.7 million, up $2.2 million, or 10.3%, compared to the second quarter of 2025, and up $5.0 million, or 27.0%, when compared to the third quarter of 2024.

For the nine months ended September 30, 2025, diluted earnings per share were $4.52, up 25.9% from the $3.59 reported for the nine months ended September 30, 2024. Year-to-date net income was $64.8 million for the nine months ended September 30, 2025, up $13.6 million or 26.6% when compared to $51.2 million for the same nine month period in 2024.

Tompkins President and CEO, Stephen Romaine, commented, "Our third quarter financial results highlight the strength of our team and balance sheet. Net income was up 27.0% in the third quarter of 2025 as compared to the same quarter in the prior year. Our performance was driven by continued net interest margin expansion along with loan and deposit growth of 7%. Our improved earnings reflected the results of investments in our business, as expenses for the 2025 year-to-date period were up over 4% compared to the prior year period. We believe we remain well positioned to continue to support growth, build quality customer relationships and support our local communities."

SELECTED HIGHLIGHTS FOR THE PERIOD:

NET INTEREST INCOME

Net interest income was $63.9 million for the third quarter of 2025, up $3.7 million or 6.2% compared to the second quarter of 2025, and up $10.7 million or 20.1% compared to the third quarter of 2024. 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.

For the nine months ended September 30, 2025, net interest income was $180.7 million, up $25.8 million or 16.7% when compared to the same period in 2024.

Net interest margin was 3.20% for the third quarter of 2025, up 12 basis points when compared to the immediate prior quarter, and up 41 basis points from 2.79% for the third quarter of 2024. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to increased yields on average interest earning assets and higher average loan balances. The increase over the prior year third quarter was due to the same factors, as well as lower funding costs resulting from improved funding mix.

Average loans for the quarter ended September 30, 2025 were up $86.8 million, or 1.4%, from the most recent prior quarter, and were up $385.5 million, or 6.6%, 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 September 30, 2025 was 4.90%, an increase of 11 basis points from 4.79% for the quarter ended June 30, 2025, and up 24 basis points from 4.66% for the quarter ended September 30, 2024.

Average total deposits of $6.8 billion for the third quarter of 2025 were up $116.7 million, or 1.7%, compared to the second quarter of 2025, and up $481.8 million, or 7.6%, compared to the third quarter of 2024. The cost of interest-bearing deposits of 2.26% for the third quarter of 2025 was up 2 basis points compared to the most recent prior quarter, and down 9 basis points from 2.35% for the third quarter of 2024. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2025 was 27.6% compared to 27.0% for the second quarter of 2025, and 28.9% for the third quarter of 2024. The average cost of interest-bearing liabilities for the third quarter of 2025 was 2.45%, up 1 basis point when compared to the most recent prior quarter, and down 26 basis points from the same period in 2024.

NONINTEREST INCOME

Noninterest income of $23.6 million for the third quarter of 2025 was up $179,000 or 0.8% compared to the third quarter of 2024, mainly due to an increase in the gain on the sale of loans, which was up $202,000 or 52.2% compared to the same period in 2024. Year-to-date noninterest income of $71.1 million was up $3.8 million or 5.7% compared to the same period in 2024, mainly due to a $2.1 million, or 28.7% increase in other income, which included a $1.9 million gain on the sale of other real estate owned, and an increase in insurance commissions and fees of $1.9 million or 6.1%. The increase for the year-to-date period also included an increase in wealth management fees of $351,000 or 2.4%. These increases were partially offset by a decrease in card services income, which was down $471,000 or 5.2%. Card services income in 2024 included a $255,000 sign-on bonus related to the renewal of a card services contract.

NONINTEREST EXPENSE

Noninterest expense was $53.8 million for the third quarter of 2025, up $4.0 million or 8.0% compared to the same period in 2024. Noninterest expense for the year-to-date period ended September 30, 2025 was $156.1 million, an increase of $6.4 million or 4.3% compared to the $149.7 million reported for the same period in 2024. Increases for both periods over the prior year periods reflected higher personnel-related expenses, which were up $1.7 million or 5.4% for the third quarter of 2025, and up $4.7 million or 5.0% for the year-to-date period ended September 30, 2025, and other operating expense, up $2.1 million or 16.2% for the third quarter of 2025, and up $1.7 million or 4.3% for the year-to-date period ended September 30, 2025. The increase in other operating expenses reflects investments in support of future growth.

INCOME TAX EXPENSE

Provision for income tax expense was $7.4 million for an effective rate of 23.9% for the third quarter of 2025, compared to $5.9 million for an effective rate of 23.9% for the third quarter of 2024. For the nine months ended September 30, 2025, the provision for income tax expense was $20.3 million and the effective tax rate was 23.9% compared to $16.0 million for an effective tax rate of 23.7% for the same period in 2024.

ASSET QUALITY

The allowance for credit losses represented 0.95% of total loans and leases at September 30, 2025, unchanged from the most recent prior quarter, and up from 0.94% reported at September 30, 2024. The increase in the allowance for credit losses coverage ratio compared to September 30, 2024 was mainly due to updated economic forecasts for unemployment and gross domestic product for the quarter, as well as updated model assumptions based on the annual model review. The ratio of the allowance to total nonperforming loans and leases was 113.06% at September 30, 2025, compared to 111.55% at June 30, 2025, and 88.51% at September 30, 2024. The increase in the ratio compared to the third quarter of 2024 was due to the decrease in nonperforming loans and leases, discussed in more detail below.

Provision for credit losses for the third quarter of 2025 was $2.5 million compared to $2.2 million for the third quarter of 2024. Provision for credit losses for the nine months ended September 30, 2025 was $10.6 million compared to $5.2 million for the nine months ended September 30, 2024. The increase in provision expense for the year-to-date period compared to the same period in 2024 was mainly driven by a charge-off of $4.7 million in the second quarter of 2025 on a commercial real estate relationship totaling $18.1 million. Net charge-offs for the three months ended September 30, 2025 were $1.1 million, compared to $5.3 million for the second quarter of 2025, and $912,000 for the third quarter of 2024. The decrease in net charge-offs compared to the second quarter of 2025 was mainly related to the $4.7 million charge-off discussed above.

Nonperforming assets of $53.0 million represented 0.63% of total assets at September 30, 2025, in line with June 30, 2025, and down from $62.7 million or 0.78% at September 30, 2024. The decrease in nonperforming assets at September 30, 2025 compared to the same period in 2024 was largely due to one nonperforming commercial real estate loan totaling $14.2 million moving into other real estate owned during the fourth quarter of 2024, and subsequently being sold in the first quarter of 2025. Loans past due 30-89 days totaled $7.8 million at September 30, 2025, $5.9 million at June 30, 2025, and $7.0 million at September 30, 2024.

Special Mention and Substandard loans and leases totaled $144.2 million at September 30, 2025, compared to $96.8 million reported at June 30, 2025, and $126.0 million reported at September 30, 2024. The increase was mainly a result of two loans totaling $41.2 million being downgraded to Special Mention during the third quarter of 2025. The Company believes that the existing collateral and pledged investments securing the loans are sufficient to cover the exposure.

CAPITAL POSITION

Capital ratios at September 30, 2025 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.27% at September 30, 2025, compared to 13.15% at June 30, 2025, and 13.21% at September 30, 2024. The ratio of Tier 1 capital to average assets was 9.41% at September 30, 2025, compared to 9.36% at June 30, 2025, and 9.19% at September 30, 2024.

LIQUIDITY POSITION

The Company's liquidity position at September 30, 2025 was stable and consistent with its position at June 30, 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 $1.5 billion, or 17.8% of total assets, at September 30, 2025.

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 and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. 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", "will", "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 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 and our Quarterly Reports on Form 10-Q 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 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; increased 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 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 the war in Ukraine and the impacts of continued or escalating hostilities in the Middle East), tariffs and trade wars, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. 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) (Unaudited)

As of

ASSETS

9/30/2025

12/31/2024

(Audited)

Cash and noninterest bearing balances due from banks

77,115

53,635

Interest bearing balances due from banks

116,377

80,763

Cash and Cash Equivalents

193,492

134,398

Available-for-sale debt securities, at fair value (amortized cost of $1,380,783 at September 30, 2025 and $1,367,123 at December 31, 2024)

1,291,053

1,231,532

Held-to-maturity debt securities, at amortized cost (fair value of $281,624 at September 30, 2025 and $267,295 at December 31, 2024)

312,510

312,462

Equity securities, at fair value

794

768

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

6,288,071

6,019,922

Less: Allowance for credit losses

59,889

56,496

Net Loans and Leases

6,228,182

5,963,426

Federal Home Loan Bank and other stock

27,083

42,255

Bank premises and equipment, net

73,842

76,627

Corporate owned life insurance

77,328

76,448

Goodwill

92,602

Other intangible assets, net

2,325

2,203

Accrued interest and other assets

169,520

176,359

Total Assets

8,468,731

8,109,080

LIABILITIES

Deposits:

Interest bearing:

Checking, savings and money market

3,904,875

3,558,946

Time

1,242,051

1,068,375

Noninterest bearing

1,906,144

1,844,484

Total Deposits

7,053,070

6,471,805

Federal funds purchased and securities sold under agreements to repurchase

80,804

37,036

Other borrowings

444,866

790,247

Other liabilities

101,186

96,548

Total Liabilities

7,679,926

7,395,636

EQUITY

Tompkins Financial Corporation shareholders' equity:

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,461,230 at September 30, 2025; and 14,468,013 at December 31, 2024

1,447

Additional paid-in capital

301,184

300,073

Retained earnings

575,112

537,157

Accumulated other comprehensive loss

(83,773

)

(118,492

)

Treasury stock, at cost – 101,665 shares at September 30, 2025, and 131,497 shares at December 31, 2024

(5,165

)

(6,741

)

Total Equity

788,805

713,444

Total Liabilities and Equity

8,468,731

8,109,080

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

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

Three Months Ended

Nine Months Ended

9/30/2025

06/30/2025

9/30/2024

9/30/2025

9/30/2024

INTEREST AND DIVIDEND INCOME

Loans

86,309

82,293

77,814

247,232

223,059

Due from banks

187

168

549

506

Available-for-sale debt securities

9,738

9,311

9,037

27,778

28,019

Held-to-maturity debt securities

1,224

1,220

1,222

3,661

3,659

Federal Home Loan Bank and other stock

598

635

888

1,944

2,309

Total Interest and Dividend Income

98,056

93,646

89,129

281,164

257,552

INTEREST EXPENSE

Time certificates of deposits of $250,000 or more

4,063

4,140

4,158

12,710

12,216

Other deposits

24,210

23,339

22,553

69,692

64,213

Federal funds purchased and securities sold under agreements to repurchase

125

Other borrowings

5,882

5,976

9,214

17,967

26,267

Total Interest Expense

34,178

33,516

35,936

100,494

102,731

Net Interest Income

63,878

60,130

53,193

180,670

154,821

Less: Provision for credit loss expense

2,490

2,780

2,174

10,557

5,200

Net Interest Income After Provision for Credit Loss Expense

61,388

57,350

51,019

170,113

149,621

NONINTEREST INCOME

Insurance commissions and fees

11,282

9,609

11,283

32,490

30,629

Wealth management fees

4,979

4,964

4,925

15,062

14,711

Service charges on deposit accounts

1,844

1,790

1,872

5,439

5,434

Card services income

2,891

3,150

2,921

8,667

9,138

Other income

2,557

2,998

2,299

9,424

7,321

Net gain (loss) on securities transactions

Total Noninterest Income

23,564

22,512

23,385

71,108

67,298

NONINTEREST EXPENSE

Salaries and wages

27,581

26,368

25,664

78,926

75,280

Other employee benefits

6,073

7,162

6,276

20,335

19,232

Net occupancy expense of premises

3,173

3,108

3,065

9,851

9,761

Furniture and fixture expense

1,825

2,069

1,797

5,681

5,832

Amortization of intangible assets

265

242

Other operating expense

15,098

12,832

12,989

41,019

39,329

Total Noninterest Expenses

53,847

51,623

49,877

156,077

149,676

Income Before Income Tax Expense

31,105

28,239

24,527

85,144

67,243

Income Tax Expense

7,432

6,768

5,858

20,321

15,958

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

23,673

21,471

18,669

64,823

51,285

Less: Net Income Attributable to Noncontrolling Interests

Net Income Attributable to Tompkins Financial Corporation

23,673

21,471

18,638

64,823

51,192

Basic Earnings Per Share

1.66

1.51

1.31

4.55

3.60

Diluted Earnings Per Share

1.65

1.50

1.30

4.52

3.59

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

Quarter Ended

September 30, 2025

June 30, 2025

September 30, 2024

(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

18,474

187

4.02

15,820

187

4.74

13,189

168

5.07

Securities 1

U.S. Government securities

1,616,048

10,466

2.57

1,610,090

10,026

2.50

1,664,611

9,740

2.33

State and municipal 2

82,462

541

2.60

85,080

554

2.61

87,799

560

2.54

Other Securities 2

3,283

6.52

3,279

6.48

3,282

7.27

Total securities

1,701,793

11,061

2.58

1,698,449

10,633

2.51

1,755,692

10,360

2.35

FHLBNY and FRB stock

31,023

598

7.65

31,660

635

8.05

38,534

888

9.17

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

6,216,384

86,522

5.52

6,129,561

82,499

5.40

5,830,899

78,040

5.32

Total interest-earning assets

7,967,674

98,368

4.90

7,875,490

93,954

4.79

7,638,314

89,456

4.66

Other assets

329,774

293,105

276,610

Total assets

8,297,448

8,168,595

7,914,924

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits

Interest bearing checking, savings, & money market

3,724,882

17,306

1.84

3,680,761

16,504

1.80

3,509,116

16,635

1.89

Time deposits

1,228,830

10,967

3.54

1,230,182

10,975

3.58

1,016,949

10,076

3.94

Total interest-bearing deposits

4,953,712

28,273

2.26

4,910,943

27,479

2.24

4,526,065

26,711

2.35

Federal funds purchased & securities sold under agreements to repurchase

41,524

0.22

42,123

0.58

42,449

0.10

Other borrowings

535,327

5,882

4.36

550,558

5,976

4.35

709,474

9,214

5.17

Total interest-bearing liabilities

5,530,563

34,178

2.45

5,503,624

33,516

2.44

5,277,988

35,936

2.71

Noninterest bearing deposits

1,892,896

1,818,922

1,838,725

Accrued expenses and other liabilities

102,462

96,074

101,679

Total liabilities

7,525,921

7,418,620

7,218,392

Tompkins Financial Corporation Shareholders’ equity

771,527

749,975

695,057

Noncontrolling interest

1,475

Total equity

771,527

749,975

696,532

Total liabilities and equity

8,297,448

8,168,595

7,914,924

Interest rate spread

2.45

2.34

1.95

Tax-equivalent net interest income/margin on earning assets

64,190

3.20

60,438

3.08

53,520

2.79

Tax-equivalent adjustment

(312

)

(308

)

(327

)

Net interest income

63,878

60,130

53,193

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

Year to Date Period Ended

September 30, 2025

September 30, 2024

Average

Balance

Average

Balance

Average

(Dollar amounts in thousands)

(YTD)

Interest

Yield/Rate

(YTD)

Interest

Yield/Rate

ASSETS

Interest-earning assets

Interest-bearing balances due from banks

16,914

549

4.34

12,369

506

5.46

Securities 1

U.S. Government securities

1,608,371

29,933

2.49

1,712,727

30,109

2.35

State and municipal 2

84,466

1,649

2.61

89,063

1,697

2.55

Other securities

3,279

160

6.52

3,273

179

7.31

Total securities

1,696,116

31,742

2.50

1,805,063

31,985

2.37

FHLBNY and FRB stock

31,552

1,944

8.24

36,948

2,309

8.35

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

6,124,468

247,859

5.41

5,713,780

223,656

5.23

Total interest-earning assets

7,869,050

282,094

4.79

7,568,160

258,456

4.56

Other assets

306,039

274,143

Total assets

8,175,089

7,842,303

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits

Interest bearing checking, savings, & money market

3,696,142

49,903

1.81

3,517,993

47,424

1.80

Time deposits

1,206,273

32,499

3.60

997,800

29,005

3.88

Total interest-bearing deposits

4,902,415

82,402

2.25

4,515,793

76,429

2.26

Federal funds purchased & securities sold under agreements to repurchase

43,744

125

0.38

43,837

0.11

Other borrowings

549,192

17,967

4.37

673,809

26,267

5.21

Total interest-bearing liabilities

5,495,351

100,494

2.45

5,233,439

102,731

2.62

Noninterest bearing deposits

1,830,755

1,835,776

Accrued expenses and other liabilities

98,953

97,593

Total liabilities

7,425,059

7,166,808

Tompkins Financial Corporation Shareholders’ equity

750,030

674,048

Noncontrolling interest

1,447

Total equity

750,030

675,495

Total liabilities and equity

8,175,089

7,842,303

Interest rate spread

2.35

1.94

Net interest income (TE)/margin on earning assets

181,600

3.09

155,725

2.75

Tax Equivalent Adjustment

(930

)

(904

)

Net interest income

180,670

154,821

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

Quarter-Ended

Year-Ended

Period End Balance Sheet

Sep-25

Jun-25

Mar-25

Dec-24

Sep-24

Dec-24

Securities

1,604,357

1,588,647

1,572,602

1,544,762

1,622,526

1,544,762

Total Loans

6,288,071

6,172,654

6,066,645

6,019,922

5,881,261

6,019,922

Allowance for credit losses

59,889

58,555

61,023

56,496

55,384

56,496

Total assets

8,468,731

8,373,818

8,199,653

8,109,080

8,006,427

8,109,080

Total deposits

7,053,070

6,715,795

6,753,502

6,471,805

6,577,896

6,471,805

Brokered deposits

145,223

138,787

99,763

20,383

Federal funds purchased and securities sold under agreements to repurchase

80,804

127,111

122,985

37,036

67,506

37,036

Other borrowings

444,866

672,696

493,247

790,247

539,327

790,247

Total common equity

788,805

761,793

741,377

713,444

719,855

713,444

Total equity

788,805

761,793

741,377

713,444

721,348

713,444

Average Balance Sheet

Average earning assets

7,967,674

7,875,490

7,761,723

7,691,242

7,638,314

7,599,098

Average assets

8,297,448

8,168,595

8,056,578

7,973,732

7,914,924

7,875,339

Average interest-bearing liabilities

5,530,563

5,503,624

5,450,993

5,311,044

5,277,988

5,252,947

Average equity

771,527

749,975

728,110

716,546

696,532

685,814

Share data

Weighted average shares outstanding (basic)

14,248,533

14,246,395

14,246,140

14,230,297

14,215,607

14,218,106

Weighted average shares outstanding (diluted)

14,345,219

14,320,125

14,319,440

14,312,497

14,283,255

14,268,443

Period-end shares outstanding

14,431,300

14,430,985

14,433,873

14,436,363

14,394,255

14,436,363

Common equity book value per share

54.66

52.79

51.36

49.42

50.01

49.42

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

48.19

46.31

44.88

42.93

43.50

42.93

**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

63,878

60,130

56,662

56,281

53,193

211,102

Provision for credit loss expense

2,490

2,780

5,287

1,411

2,174

6,611

Noninterest income

23,564

22,512

25,032

20,829

23,385

88,127

Noninterest expense

53,847

51,623

50,607

49,966

49,877

199,642

Income tax expense

7,432

6,768

6,121

6,045

5,858

22,003

Net income attributable to Tompkins Financial Corporation

23,673

21,471

19,679

19,658

18,638

70,850

Noncontrolling interests

123

Basic earnings per share 4

1.66

1.51

1.38

1.31

4.98

Diluted earnings per share 4

1.65

1.50

1.37

1.30

4.97

Nonperforming Assets

Nonaccrual loans and leases

52,805

52,325

70,891

50,548

62,381

50,548

Loans and leases 90 days past due and accruing

166

187

323

193

323

Total nonperforming loans and leases

52,971

52,491

71,078

50,871

62,574

50,871

OREO

14,314

Total nonperforming assets

52,971

52,572

71,159

65,185

62,655

65,185

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

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Sep-25

Jun-25

Mar-25

Dec-24

Sep-24

Dec-24

Loans and leases 30-89 days past due and

accruing

7,841

5,857

12,285

28,828

7,031

28,828

Loans and leases 90 days past due and accruing

166

187

323

193

323

Total loans and leases past due and accruing

8,007

6,023

12,472

29,151

7,224

29,151

Allowance for Credit Losses

Balance at beginning of period

58,555

61,023

56,496

55,384

53,059

51,584

Provision for credit losses

2,454

2,786

5,260

1,969

3,237

7,418

Net loan and lease charge-offs (recoveries)

1,120

5,254

733

857

912

2,506

Allowance for credit losses at end of period

59,889

58,555

61,023

56,496

55,384

56,496

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

1,484

1,490

1,463

2,021

3,084

2,270

Provision (credit) for credit losses

)

(558

)

(1,063

)

(807

)

Allowance for credit losses at end of period

1,520

1,484

1,490

1,463

2,021

1,463

Loan Classification - Total Portfolio

Special Mention

88,398

40,048

34,790

36,923

58,758

36,923

Substandard

55,762

56,740

75,980

74,163

67,261

74,163

Ratio Analysis

Credit Quality

Nonperforming loans and leases/total loans and leases

0.84

0.85

1.17

0.85

1.06

0.85

Nonperforming assets/total assets

0.63

0.87

0.80

0.78

0.80

Allowance for credit losses/total loans and leases

0.95

1.01

0.94

Allowance/nonperforming loans and leases

113.06

111.55

85.85

111.06

88.51

111.06

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

0.07

0.34

0.05

0.06

0.04

Capital Adequacy

Tier 1 Capital (to average assets)

9.41

9.36

9.31

9.27

9.19

9.27

Total Capital (to risk-weighted assets)

13.27

13.15

13.28

13.07

13.21

13.07

Profitability (period-end)

Return on average assets *

1.13

1.05

0.99

0.98

0.94

0.90

Return on average equity *

12.17

11.48

10.96

10.91

10.65

10.33

Net interest margin (TE) *

3.20

3.08

2.98

2.93

2.79

Average yield on interest-earning assets*

4.90

4.79

4.69

4.67

4.66

4.59

Average cost of deposits*

1.64

1.63

1.67

1.62

Average cost of funds*

1.83

1.84

1.88

2.01

1.92

* 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 table. 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

Sep-25

Jun-25

Mar-25

Dec-24

Sep-24

Dec-24

Common equity book value per share (GAAP)

54.66

52.79

51.36

49.42

50.01

49.42

Total common equity

788,805

761,793

741,377

713,444

719,855

713,444

Less: Goodwill and intangibles

93,405

93,503

93,586

93,670

93,760

93,670

Tangible common equity (Non-GAAP)

695,400

668,290

647,791

619,774

626,095

619,774

Ending shares outstanding

14,431,300

14,430,985

14,433,873

14,436,363

14,394,255

14,436,363

Tangible book value per share (Non-GAAP)

48.19

46.31

44.88

42.93

43.50

42.93

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

2 Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2025 and 2024 to increase tax exempt interest income to taxable-equivalent basis.

3 Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

4 Earnings per share for the full fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.