Tompkins Financial Corporation Reports Record Earnings Per Share for the Fourth Quarter of 2025

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

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share (GAAP) of $6.70 for the fourth quarter of 2025, up $5.33 or 389.1% compared to the fourth quarter of 2024. The Company had record operating diluted earnings per share (non-GAAP) for the fourth quarter of 2025 of $1.78. A reconciliation of these amounts can be found on page 14 of this press release. Net income for the fourth quarter of 2025 was $96.2 million, up $76.6 million, or 389.6%, compared to the $19.7 million reported for the fourth quarter of 2024.

For the year ended December 31, 2025, diluted earnings per share (GAAP) was $11.24, up $6.27 or 126.2% from the $4.97 reported for the year ended December 31, 2024. The Company had record operating diluted earnings per share (non-GAAP) for year ended December 31, 2025 of $6.31. A reconciliation of these amounts can be found on page 14 of this press release. Net income was $161.1 million for the year ended December 31, 2025, up $90.2 million or 127.3%, compared to $70.9 million reported for 2024.

The increase in diluted earnings per share and net income for both the fourth quarter and full year periods included the sale of all of the issued and outstanding shares of capital stock of the Company's wholly-owned subsidiary, Tompkins Insurance Agencies, Inc. ("TIA") to Arthur J. Gallagher & Co. (“Gallagher”) (NYSE: AJG) for approximately $223.0 million in cash, subject to customary purchase price adjustments. The transaction generated a pre-tax gain of $188.2 million, recognized in non-interest income. The Company also incurred $4.3 million in expenses related to the sale of TIA, which are reported in noninterest expense. Partially offsetting the increase for both the fourth quarter and full year periods was the sale of $564.2 million of available-for-sale debt securities during the fourth quarter of 2025, which resulted in a pre-tax loss of $78.7 million. The Company expects this sale to favorably impact securities revenue in future periods as the securities sold had an average yield of 1.56%, while the proceeds of the sale were largely reinvested into securities with an estimated yield of approximately 4.52%. The weighted average life of the securities purchased and sold was approximately 5.5 years.

Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report record quarterly net income and operating earnings for the fourth quarter of 2025. Our improved results were driven by strong loan and deposit growth, both of which were up over 7% for the year, and by an expanding net interest margin which was up 49 basis points over the fourth quarter of 2024. During the fourth quarter of 2025, we announced the sale of Tompkins Insurance Agencies, Inc. and restructured our balance sheet, which we believe leaves us with continued momentum heading into 2026 and provides us with capital to support strategic investments for the future."

SELECTED HIGHLIGHTS FOR THE PERIOD:

NET INTEREST INCOME

Net interest income was $69.1 million for the fourth quarter of 2025, up $5.2 million or 8.1% compared to the third quarter of 2025, and up $12.8 million or 22.7% compared to the fourth quarter of 2024. For the year ended December 31, 2025, net interest income was $249.7 million, up $38.6 million or 18.3% when compared to 2024. The increase in net interest income in the fourth quarter of 2025 and the full year period compared to the most recent prior quarter and the same periods in 2024 was due to improvement in net interest margin, which is discussed below, and growth in average loans.

Net interest margin was 3.42% for the fourth quarter of 2025, compared to 3.20% reported for the third quarter of 2025, and 2.93% reported for the fourth quarter of 2024. Net interest margin of 3.17% for the twelve months ended December 31, 2025 was up 38 basis points over 2024. The increases in net interest margin reflect growth in average loan balances, improved yields on average earnings assets, and lower funding costs as a result of lower rates and improved funding mix. Average yield on securities for the fourth quarter of 2025 was up 45 basis points over the third quarter of 2025 and up 68 basis points over the fourth quarter of 2024, mainly a result of the reinvestment within the portfolio at higher yields.

Average loans for the quarter ended December 31, 2025 were up $120.2 million, or 1.9%, over the most recent prior quarter, and were up $404.8 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 December 31, 2025 was 4.98%, an increase of 8 basis points from 4.90% for the quarter ended September 30, 2025, and up 31 basis points from 4.67% for the quarter ended December 31, 2024.

Average total deposits of $7.0 billion for the fourth quarter of 2025 were up $126.3 million, or 1.8%, compared to the third quarter of 2025, and up $390.8 million, or 5.9%, compared to the fourth quarter of 2024. The cost of interest-bearing deposits of 2.18% for the fourth quarter of 2025 was down 8 basis points compared to the most recent prior quarter, and down 13 basis points from 2.31% for the fourth quarter of 2024. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2025 was 27.4% compared to 27.6% for the third quarter of 2025, and 28.0% for the fourth quarter of 2024. The average cost of interest-bearing liabilities for the fourth quarter of 2025 was 2.30%, down 15 basis points when compared to the most recent prior quarter, and down 23 basis points from the same period in 2024.

NONINTEREST INCOME

Noninterest income of $125.8 million for the fourth quarter of 2025 was up $104.9 million or 503.8% compared to the fourth quarter of 2024. Year-end noninterest income of $196.9 million was up $108.7 million or 123.4% compared to the same period in 2024. The increase in noninterest income is mainly due to the above-mentioned sale of TIA to Gallagher during the fourth quarter of 2025 resulting in a pre-tax gain of $188.2 million in other income, which was partially offset by the above-mentioned sale of available-for-sale securities at a pre-tax loss of $78.7 million. For the three and twelve months ended December 31, 2025, investment services income was up 3.6% and 2.7%, respectively over the same periods prior year, while card services income was down 2.9% and 4.6%, respectively over the same periods. Insurance revenue for the three and twelve months ended December 31, 2025 was down 63.7% and 9.0%, respectively, compared to the same periods in 2024, as a result of the sale of TIA during the fourth quarter of 2025.

NONINTEREST EXPENSE

Noninterest expense was $54.1 million for the fourth quarter of 2025, up $4.2 million or 8.3% compared to the same period in 2024. Noninterest expense for the full year ended December 31, 2025 was $210.2 million, an increase of $10.6 million or 5.3% compared to the $199.6 million reported for 2024. As previously stated, noninterest expense included $4.3 million of expenses related to the sale of TIA in the fourth quarter of 2025. Increases for both periods over the prior year periods were mainly in salaries and employee benefits, which were up $3.0 million or 8.9% for the fourth quarter of 2025, and up $7.7 million or 6.0% for the year ended December 31, 2025, compared to the same periods in 2024. The increases were a result of the expenses related to the sale of TIA and annual merit adjustments. In addition, professional fees were up $1.1 million or 69.6% and up $2.9 million or 45.0% for the fourth quarter and year ended December 31, 2025, compared to the same periods in 2024. The increase in professional fees reflects initiatives to support future growth.

INCOME TAX EXPENSE

Provision for income tax expense was $43.5 million for an effective rate of 31.1% for the fourth quarter of 2025, compared to $6.0 million for an effective rate of 23.5% for the fourth quarter of 2024. For the year ended December 31, 2025, the provision for income tax expense was $63.8 million for an effective rate of 28.4% compared to provision of $22.0 million for an effective rate of 23.7% for 2024. The fourth quarter and full year periods in 2025 were impacted by the sale of TIA, which added approximately $54.4 million to the provision for income tax expense for 2025. Also impacting both the quarter and full-year periods was a decrease in pre-tax income, due primarily to the above-mentioned realized losses on the sale of certain available-for-sale securities.

ASSET QUALITY

The allowance for credit losses was 0.89% of total loans and leases at December 31, 2025, down from 0.95% at September 30, 2025, and from 0.94% at December 31, 2024. The decrease in the allowance for credit losses compared to December 31, 2024 was mainly due to updated economic forecasts for unemployment and gross domestic product for the quarter, as well as improved asset quality. The ratio of the allowance to total nonperforming loans and leases was 120.30% at December 31, 2025, compared to 113.06% at September 30, 2025, and 111.06% at December 31, 2024. The increase in the ratio compared to the fourth quarter of 2024 was due to the decrease in nonperforming loans and leases, discussed in more detail below.

Provision for credit losses for the fourth quarter of 2025 was $1.0 million compared to $1.4 million for the fourth quarter of 2024. Provision for credit losses for the year-ended December 31, 2025 was $11.5 million compared to $6.6 million for the same period in 2024. The increase in provision expense for the full year period compared to 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, and a charge-off of $2.4 million in the fourth quarter of 2025 on a commercial real estate relationship totaling $7.4 million. At the time of the charge-offs, the two commercial real estate relationships had specific reserves of $4.2 million and $1.6 million, respectively. Net charge-offs for the three months ended December 31, 2025 were $3.3 million, compared to $1.1 million for the third quarter of 2025, and $857,000 for the fourth quarter of 2024.

Nonperforming assets of $48.2 million represented 0.56% of total assets at December 31, 2025, down from $53.0 million or 0.63% of total assets at September 30, 2025, and down from $65.2 million or 0.80% of total assets at December 31, 2024. The decrease in nonperforming assets at December 31, 2025 compared to prior year end 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. In addition, during the fourth quarter of 2025, a $7.4 million commercial real estate loan was removed from nonaccrual loans, reflecting a payoff of $5.0 million, with a partial charge-off of $2.4 million. Loans past due 30-89 days totaled $8.8 million at December 31, 2025, $7.8 million at September 30, 2025, and $28.8 million at December 31, 2024. The decrease in loans past due 30-89 days when compared to December 31, 2024 was mainly due to one commercial real estate loan totaling $17.3 million being moved to nonaccrual loans and leases in the first quarter of 2025.

Special Mention and Substandard loans and leases totaled $134.5 million at December 31, 2025, compared to $144.2 million reported at September 30, 2025, and $111.1 million reported at December 31, 2024.

CAPITAL POSITION

Capital ratios at December 31, 2025 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.55% at December 31, 2025, compared to 13.27% at September 30, 2025, and 13.07% at December 31, 2024. The ratio of Tier 1 capital to average assets was 10.62% at December 31, 2025, compared to 9.41% at September 30, 2025, and 9.27% at December 31, 2024. Capital ratios at December 31, 2025 were positively impacted by the proceeds of the sale of TIA.

During the fourth quarter of 2025, the Company repurchased 22,339 shares of common stock at an aggregate cost of $1.6 million. These shares were purchased under the Company's 2025 Stock Repurchase Plan announced in the third quarter of 2025.

LIQUIDITY POSITION

The Company's liquidity position at December 31, 2025 was consistent with its position at September 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 $1.7 billion, or 19.1% of total assets, at December 31, 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, which offers a full array of products and services, including commercial and consumer banking. Tompkins Community Bank provides 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 revenue 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 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 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 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, and the related changes to customer behavior or 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) (Unaudited)

As of

ASSETS

12/31/2025

12/31/2024

(Audited)

Cash and noninterest bearing balances due from banks

50,717

53,635

Interest bearing balances due from banks

82,100

80,763

Cash and Cash Equivalents

132,817

134,398

Available-for-sale debt securities, at fair value (amortized cost of $1,391,379 at December 31, 2025 and $1,367,123 at December 31, 2024)

1,382,068

1,231,532

Held-to-maturity debt securities, at amortized cost (fair value of $283,860 at December 31, 2025 and $267,295 at December 31, 2024)

312,528

312,462

Equity securities, at fair value

800

768

Loans held for sale

43,440

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

6,446,245

6,019,922

Less: Allowance for credit losses

57,671

56,496

Net Loans and Leases

6,388,574

5,963,426

Federal Home Loan Bank and other stock

32,307

42,255

Bank premises and equipment, net

72,418

76,627

Corporate owned life insurance

77,843

76,448

Goodwill

72,736

92,602

Other intangible assets, net

1,687

2,203

Accrued interest and other assets

151,050

176,359

Total Assets

8,668,268

8,109,080

LIABILITIES

Deposits:

Interest bearing:

Checking, savings and money market

3,742,402

3,558,946

Time

1,298,393

1,068,375

Noninterest bearing

1,896,967

1,844,484

Total Deposits

6,937,762

6,471,805

Federal funds purchased and securities sold under agreements to repurchase

95,569

37,036

Other borrowings

564,446

790,247

Other liabilities

132,114

96,548

Total Liabilities

7,729,891

7,395,636

EQUITY

Tompkins Financial Corporation shareholders' equity:

Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,449,845 at December 31, 2025; and 14,468,013 at December 31, 2024

1,446

1,447

Additional paid-in capital

299,206

300,073

Retained earnings

662,161

537,157

Accumulated other comprehensive loss

(19,054

)

(118,492

)

Treasury stock, at cost – 104,492 shares at December 31, 2025, and 131,497 shares at December 31, 2024

(5,382

)

(6,741

)

Total Equity

938,377

713,444

Total Liabilities and Equity

8,668,268

8,109,080

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

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

Three Months Ended

Year Ended

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

INTEREST AND DIVIDEND INCOME

Loans

87,372

86,309

78,911

334,604

301,970

Due from banks

211

187

235

760

741

Available-for-sale debt securities

11,509

9,738

8,760

39,287

36,779

Held-to-maturity debt securities

1,225

1,224

1,222

4,886

4,881

Federal Home Loan Bank and other stock

593

598

894

2,537

3,203

Total Interest and Dividend Income

100,910

98,056

90,022

382,074

347,574

INTEREST EXPENSE

Time certificates of deposits of $250,000 or more

4,527

4,063

4,698

17,237

16,914

Other deposits

23,318

24,210

22,856

93,010

87,069

Federal funds purchased and securities sold under agreements to repurchase

146

Other borrowings

3,983

5,882

6,176

21,950

32,443

Total Interest Expense

31,849

34,178

33,741

132,343

136,472

Net Interest Income

69,061

63,878

56,281

249,731

211,102

Less: Provision for credit loss expense

977

2,490

1,411

11,534

6,611

Net Interest Income After Provision for Credit Loss Expense

68,084

61,388

54,870

238,197

204,491

NONINTEREST INCOME

Insurance commissions and fees

3,079

11,282

8,471

35,569

39,100

Wealth management fees

5,053

4,979

4,878

20,115

19,589

Service charges on deposit accounts

1,819

1,844

1,854

7,258

7,288

Card services income

2,835

2,891

2,919

11,502

12,057

Gain on sale of TIA

188,241

Other income

3,451

2,557

2,740

12,875

10,061

Net gain (loss) on securities transactions

(78,715

)

(33

)

(78,689

)

Total Noninterest Income

125,763

23,564

20,829

196,871

88,127

NONINTEREST EXPENSE

Salaries and wages

29,630

27,581

25,870

108,556

101,150

Other employee benefits

6,642

6,073

7,429

26,977

26,661

Net occupancy expense of premises

3,102

3,173

2,873

12,953

12,634

Furniture and fixture expense

1,795

1,825

1,834

7,476

7,666

Amortization of intangible assets

292

332

Other operating expense

12,939

15,098

11,870

53,958

51,199

Total Noninterest Expenses

54,135

53,847

49,966

210,212

199,642

Income Before Income Tax Expense

139,712

31,105

25,733

224,856

92,976

Income Tax Expense

43,464

7,432

6,045

63,785

22,003

Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation

96,248

23,673

19,688

161,071

70,973

Less: Net Income Attributable to Noncontrolling Interests

123

Net Income Attributable to Tompkins Financial Corporation

96,248

23,673

19,658

161,071

70,850

Basic Earnings Per Share

6.74

1.66

1.38

11.30

4.98

Diluted Earnings Per Share

6.70

1.65

1.37

11.24

4.97

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

Quarter Ended

December 31, 2025

September 30, 2025

December 31, 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

17,795

211

4.70

18,474

187

4.02

19,065

235

4.90

Securities 1

U.S. Government securities

1,595,043

12,244

3.04

1,616,048

10,466

2.57

1,619,973

9,471

2.33

State and municipal 2

81,613

537

2.61

82,462

541

2.60

86,481

557

2.56

Other Securities 2

3,298

6.25

3,283

6.52

3,287

6.66

Total securities

1,679,954

12,833

3.03

1,701,793

11,061

2.58

1,709,741

10,083

2.35

FHLBNY and FRB stock

24,113

593

9.76

31,023

598

7.65

30,665

894

11.60

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

6,336,565

87,612

5.48

6,216,384

86,522

5.52

5,931,771

79,126

5.31

Total interest-earning assets

8,058,427

101,249

4.98

7,967,674

98,368

4.90

7,691,242

90,338

4.67

Other assets

313,860

329,774

282,490

Total assets

8,372,287

8,297,448

7,973,732

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits

Interest bearing checking, savings, & money market

3,779,290

16,695

1.75

3,724,882

17,306

1.84

3,661,006

17,223

1.87

Time deposits

1,282,009

11,150

3.45

1,228,830

10,967

3.54

1,076,300

10,331

3.82

Total interest-bearing deposits

5,061,299

27,845

2.18

4,953,712

28,273

2.26

4,737,306

27,554

2.31

Federal funds purchased & securities sold under agreements to repurchase

42,221

0.20

41,524

0.22

39,519

0.11

Other borrowings

380,920

3,983

4.15

535,327

5,882

4.36

534,219

6,176

4.60

Total interest-bearing liabilities

5,484,440

31,849

2.30

5,530,563

34,178

2.45

5,311,044

33,741

2.53

Noninterest bearing deposits

1,911,583

1,892,896

1,844,772

Accrued expenses and other liabilities

100,606

102,462

101,370

Total liabilities

7,496,629

7,525,921

7,257,186

Tompkins Financial Corporation Shareholders’ equity

875,658

771,527

715,299

Noncontrolling interest

1,247

Total equity

875,658

771,527

716,546

Total liabilities and equity

8,372,287

8,297,448

7,973,732

Interest rate spread

2.68

2.45

2.15

Tax-equivalent net interest income/margin on earning assets

69,400

3.42

64,190

3.20

56,597

2.93

Tax-equivalent adjustment

(339

)

(312

)

(316

)

Net interest income

69,061

63,878

56,281

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

Year to Date Period Ended

December 31, 2025

December 31, 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

17,136

760

4.44

14,052

741

5.27

Securities 1

U.S. Government securities

1,605,011

42,177

2.63

1,689,411

39,580

2.34

State and municipal 2

83,747

2,185

2.61

88,414

2,254

2.55

Other securities

3,284

213

6.49

3,277

235

7.17

Total securities

1,692,042

44,575

2.63

1,781,102

42,069

2.36

FHLBNY and FRB stock

29,677

2,537

8.55

35,369

3,203

9.06

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

6,177,928

335,471

5.43

5,768,575

302,780

5.25

Total interest-earning assets

7,916,783

383,343

4.84

7,599,098

348,793

4.59

Other assets

308,011

276,241

Total assets

8,224,794

7,875,339

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits

Interest bearing checking, savings, & money market

3,717,100

66,597

1.79

3,553,942

64,647

1.82

Time deposits

1,225,363

43,650

3.56

1,017,532

39,336

3.87

Total interest-bearing deposits

4,942,463

110,247

2.23

4,571,474

103,983

2.27

Federal funds purchased & securities sold under agreements to repurchase

43,360

146

0.34

42,752

0.11

Other borrowings

506,778

21,950

4.33

638,721

32,443

5.08

Total interest-bearing liabilities

5,492,601

132,343

2.41

5,252,947

136,472

2.60

Noninterest bearing deposits

1,851,128

1,838,036

Accrued expenses and other liabilities

99,370

98,542

Total liabilities

7,443,099

7,189,525

Tompkins Financial Corporation Shareholders’ equity

781,695

684,417

Noncontrolling interest

1,397

Total equity

781,695

685,814

Total liabilities and equity

8,224,794

7,875,339

Interest rate spread

2.43

1.99

Net interest income (TE)/margin on earning assets

251,000

3.17

212,321

2.79

Tax Equivalent Adjustment

(1,269

)

(1,219

)

Net interest income

249,731

211,102

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)

Quarter-Ended

Year-Ended

Period End Balance Sheet

Dec-25

Sep-25

Jun-25

Mar-25

Dec-24

Dec-25

Securities

1,695,396

1,604,357

1,588,647

1,572,602

1,544,762

1,695,396

Total Loans

6,446,245

6,288,071

6,172,654

6,066,645

6,019,922

6,446,245

Allowance for credit losses

57,671

59,889

58,555

61,023

56,496

57,671

Total assets

8,668,268

8,468,731

8,373,818

8,199,653

8,109,080

8,668,268

Total deposits

6,937,762

7,053,070

6,715,795

6,753,502

6,471,805

6,937,762

Brokered deposits

114,391

145,223

138,787

99,763

114,391

Federal funds purchased and securities sold under agreements to repurchase

95,569

80,804

127,111

122,985

37,036

95,569

Other borrowings

564,446

444,866

672,696

493,247

790,247

564,446

Total equity

938,377

788,805

761,793

741,377

713,444

938,377

Average Balance Sheet

Average earning assets

8,058,427

7,967,674

7,875,490

7,761,723

7,691,242

7,916,783

Average assets

8,372,287

8,297,448

8,168,595

8,056,578

7,973,732

8,224,794

Average interest-bearing liabilities

5,484,440

5,530,563

5,503,624

5,450,993

5,311,044

5,492,601

Average equity

875,658

771,527

749,975

728,110

716,546

781,695

Share data

Weighted average shares outstanding (basic)

14,270,206

14,248,533

14,246,395

14,246,140

14,230,297

14,252,810

Weighted average shares outstanding (diluted)

14,356,680

14,345,219

14,320,125

14,319,440

14,312,497

14,335,358

Period-end shares outstanding

14,420,495

14,431,300

14,430,985

14,433,873

14,436,363

14,420,495

Common equity book value per share

65.07

54.66

52.79

51.36

49.42

65.07

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

60.03

48.19

46.31

44.88

42.93

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

69,061

63,878

60,130

56,662

56,281

249,731

Provision for credit loss expense

977

2,490

2,780

5,287

1,411

11,534

Noninterest income

125,763

23,564

22,512

25,032

20,829

196,871

Noninterest expense

54,135

53,847

51,623

50,607

49,966

210,212

Income tax expense

43,464

7,432

6,768

6,121

6,045

63,785

Net income attributable to Tompkins Financial Corporation

96,248

23,673

21,471

19,679

19,658

161,071

Noncontrolling interests

Basic earnings per share 4

6.74

1.66

1.51

1.38

11.30

Diluted earnings per share 4

6.70

1.65

1.50

1.37

11.24

Nonperforming Assets

Nonaccrual loans and leases

47,794

52,805

52,325

70,891

50,548

47,794

Loans and leases 90 days past due and accruing

146

166

187

323

146

Total nonperforming loans and leases

47,940

52,971

52,491

71,078

50,871

47,940

OREO

229

14,314

229

Total nonperforming assets

48,169

52,971

52,572

71,159

65,185

48,169

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

Quarter-Ended

Year-Ended

Delinquency - Total loan and lease portfolio

Dec-25

Sep-25

Jun-25

Mar-25

Dec-24

Dec-25

Loans and leases 30-89 days past due and

accruing

8,806

7,841

5,857

12,285

28,828

8,806

Loans and leases 90 days past due and accruing

146

166

187

323

146

Total loans and leases past due and accruing

8,952

8,007

6,023

12,472

29,151

8,952

Allowance for Credit Losses

Balance at beginning of period

59,889

58,555

61,023

56,496

55,384

56,496

Provision for credit losses

1,064

2,454

2,786

5,260

1,969

11,564

Net loan and lease charge-offs (recoveries)

3,282

1,120

5,254

733

857

10,389

Allowance for credit losses at end of period

57,671

59,889

58,555

61,023

56,496

57,671

Allowance for Credit Losses - Off-Balance Sheet Exposure

Balance at beginning of period

1,520

1,484

1,490

1,463

2,021

1,463

Provision (credit) for credit losses

(87

)

(558

)

(30

)

Allowance for credit losses at end of period

1,433

1,520

1,484

1,490

1,463

1,433

Loan Classification - Total Portfolio

Special Mention

100,717

88,398

40,048

34,790

36,923

100,717

Substandard

33,764

55,762

56,740

75,980

74,163

33,764

Ratio Analysis

Credit Quality

Nonperforming loans and leases/total loans and leases

0.74

0.84

0.85

1.17

0.85

0.74

Nonperforming assets/total assets

0.56

0.63

0.87

0.80

0.56

Allowance for credit losses/total loans and leases

0.89

0.95

1.01

0.94

0.89

Allowance/nonperforming loans and leases

120.30

113.06

111.55

85.85

111.06

120.30

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

0.21

0.07

0.34

0.05

0.06

0.17

Capital Adequacy

Tier 1 Capital (to average assets)

10.62

9.41

9.36

9.31

9.27

10.62

Total Capital (to risk-weighted assets)

14.55

13.27

13.15

13.28

13.07

14.55

Profitability (period-end)

Return on average assets *

4.56

1.13

1.05

0.99

0.98

1.96

Return on average equity *

43.61

12.17

11.48

10.96

10.91

20.61

Net interest margin (TE) *

3.42

3.20

3.08

2.98

2.93

3.17

Average yield on interest-earning assets*

4.98

4.90

4.79

4.69

4.67

4.84

Average cost of deposits*

1.58

1.64

1.63

1.67

1.62

Average cost of funds*

1.71

1.83

1.84

1.88

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

Dec-25

Sep-25

Jun-25

Mar-25

Dec-24

Dec-25

Common equity book value per share (GAAP)

65.07

54.66

52.79

51.36

49.42

65.07

Total common equity

938,377

788,805

761,793

741,377

713,444

938,377

Less: Goodwill and intangibles*

72,766

93,405

93,503

93,586

93,670

72,766

Tangible common equity (Non-GAAP)

865,611

695,400

668,290

647,791

619,774

865,611

Ending shares outstanding

14,420,495

14,431,300

14,430,985

14,433,873

14,436,363

14,420,495

Tangible book value per share (Non-GAAP)

60.03

48.19

46.31

44.88

42.93

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

QTD

YTD

(In thousands, except per share data)

12/31/2025

12/31/2024

12/31/2025

12/31/2024

Net income available to common shareholders

96,248

19,658

161,071

70,850

Less: income attributable to unvested stock-based compensation awards

Net earnings allocated to common shareholders (GAAP)

96,248

19,658

161,071

70,850

Diluted earnings per share (GAAP)

6.70

1.37

11.24

4.97

Adjustments for non-operating income and expense:

(Gain) loss on sale of investment securities

78,721

(50

)

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

(183,902

)

(183,902

)

Total adjustments

(105,181

)

(105,181

)

(50

)

Tax expense

(34,509

)

(34,509

)

(12

)

Total adjustments, net of tax

(70,672

)

(70,672

)

(38

)

Adjusted net income or operating income (Non-GAAP)

25,576

19,658

90,399

70,812

Weighted average shares outstanding (basic)

14,270,206

14,230,297

14,252,810

14,218,106

Weighted average shares outstanding (diluted)

14,356,680

14,312,497

14,335,358

14,268,443

Adjusted/operating basic earnings per share (Non-GAAP)

1.79

1.38

6.34

4.98

Adjusted/operating diluted earnings per share (Non-GAAP)

1.78

1.37

6.31

4.96

Net income available to common shareholders

96,248

19,658

161,071

70,850

Adjusted net income or operating income (Non-GAAP)

25,576

19,658

90,399

70,812

Average total assets

8,372,287

7,973,732

8,224,794

7,875,339

Return on average assets

4.56

0.98

1.96

0.90

Adjusted return on average assets (Non-GAAP)

1.21

0.98

1.10

0.90

Net income available to common shareholders

96,248

19,658

161,071

70,850

Adjusted net income or operating income (Non-GAAP)

25,576

19,658

90,399

70,812

Average total equity

875,658

716,545

781,695

685,814

Return on average equity

43.61

10.88

20.61

10.33

Adjusted return on average equity (Non-GAAP)

11.59

10.88

11.56

10.33

Adjusted net income or operating income (Non-GAAP)

25,576

19,658

90,399

70,850

Average Tompkins Financial Corporation shareholders' equity

875,658

715,299

781,695

684,417

Amortization of intangibles

292

332

Tax expense

Amortization of intangibles, net of tax

220

251

Adjusted net income or operating income (Non-GAAP)

25,597

19,726

90,619

71,063

Average Tompkins Financial Corporation shareholders' equity

875,658

715,299

781,695

684,417

Average goodwill and intangibles

79,494

93,716

90,006

93,844

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

796,164

621,583

691,689

590,573

Adjusted operating return on average shareholders' tangible common equity (Non-GAAP)

12.76

12.59

13.10

12.03

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.