Tompkins Financial Corporation (NYSE: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 margin improved to 3.20% in the third quarter of 2025, up 12 basis points from the immediate prior quarter, and up 41 basis points from the third quarter of 2024.
Total loans at September 30, 2025 were up $115.4 million, or 1.9% compared to June 30, 2025 (7.5% on an annualized basis), and up $406.8 million, or 6.9%, from September 30, 2024.
Total deposits at September 30, 2025 were $7.1 billion, up $337.3 million, or 5.0% compared to the most recent prior quarter end, and up $475.2 million, or 7.2%, from September 30, 2024.
Total average cost of funds of 1.83% for the third quarter of 2025 was down 1 basis point compared to the most recent prior quarter, and down 18 basis points compared to the same period of the prior year.
Provision expense for the third quarter of 2025 was $2.5 million, compared to $2.8 million for the second quarter of 2025 and $2.2 million for the third quarter of 2024.
Loan to deposit ratio at September 30, 2025 was 89.2%, compared to 91.9% at June 30, 2025, and 89.4% at September 30, 2024.
Regulatory Tier 1 capital to average assets was 9.41% at September 30, 2025, up compared to 9.36% at June 30, 2025, and 9.19% at September 30, 2024.

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			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			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			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		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		23		61		11		125		35
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		11		1		85		26		65
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		97		84		86		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		0		0		31		0		93
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							Quarter Ended							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	%
Securities¹
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 municipal²		82,462		541		2.60	%		85,080		554		2.61	%		87,799		560		2.54	%
Other Securities²		3,283		54		6.52	%		3,279		53		6.48	%		3,282		60		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		23		0.22	%		42,123		61		0.58	%		42,449		11		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		0							0							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							Year to Date Period Ended
	September 30, 2025							September 30, 2024
	Average							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	%
Securities¹
U.S. Government securities		1,608,371		29,933		2.49	%		1,712,727		30,109		2.35	%
State and municipal²		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		35		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		0							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		0		20,383		0
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		0		0		0		30		31		123
Basic earnings per share⁴		1.66		1.51		1.38		1.38		1.31		4.98
Diluted earnings per share⁴		1.65		1.50		1.37		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		166		187		323		193		323
Total nonperforming loans and leases		52,971		52,491		71,078		50,871		62,574		50,871
OREO		0		81		81		14,314		81		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		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		36		(6	)		27		(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	%	0.63	%	0.87	%	0.80	%	0.78	%	0.80	%
Allowance for credit losses/total loans and leases	0.95	%	0.95	%	1.01	%	0.94	%	0.94	%	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	%	0.06	%	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	%	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	%	1.64	%	1.63	%	1.67	%	1.67	%	1.62	%
Average cost of funds*	1.83	%	1.84	%	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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251024518103/en/

For more information contact:

Stephen S. Romaine, President & CEO

Matthew Tomazin, Executive VP, CFO & Treasurer

Tompkins Financial Corporation (888) 503-5753

Tompkins Financial Corporation Reports Improved Third Quarter Financial Results