Tompkins Financial Corporation (NYSE:TMP)

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $2.04 for the second quarter of 2026, up $0.54 or 36.0% compared to the second quarter of 2025 and up $0.22 per share or 12.1% compared to the first quarter of 2026. Net income for the second quarter of 2026 was $29.3 million, up $7.8 million or 36.5% from the second quarter of 2025, and up $3.2 million or 12.4% compared to the immediate prior quarter.

For the six months ended June 30, 2026, diluted earnings per share were $3.86, up 34.5% from the $2.87 reported for the six months ended June 30, 2025. Year-to-date net income was $55.4 million for the six months ended June 30, 2026, up $14.2 million or 34.6% when compared to $41.2 million for the same six month period in 2025.

Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report our third consecutive quarter of record earnings. Our improving profitability and healthy levels of loan and deposit growth over the past year continue to support momentum in our financial results. Given our strong results and strengthening capital position, we have approved an increase to our dividend, payable in the third quarter of 2026. This increase represents a 13% increase compared to the dividend paid in the third quarter of 2025."

SELECTED HIGHLIGHTS FOR THE PERIOD:

Net interest margin was 3.58% in the second quarter of 2026, in line with the immediate prior quarter, and up 50 basis points from the second quarter of 2025.
Period end total loans at June 30, 2026 were up $119.2 million, or 1.8% compared to March 31, 2026 (7.4% on an annualized basis), and up $424.5 million, or 6.9%, from June 30, 2025.
Period end total deposits at June 30, 2026 were $7.0 billion, down $25.1 million, or 0.4% compared to the most recent prior quarter end, and up $313.3 million, or 4.7%, from June 30, 2025.
Total average cost of funds of 1.68% for the second quarter of 2026 was in line with the first quarter of 2026, and down 16 basis points compared to the second quarter of 2025.
Regulatory Tier 1 capital to average assets was 10.69% at June 30, 2026, up from 10.58% at March 31, 2026, and 9.36% at June 30, 2025.

NET INTEREST INCOME

Net interest income was $74.0 million for the second quarter of 2026, up $2.1 million or 3.0% compared to the first quarter of 2026, and up $13.9 million or 23.0% compared to the second quarter of 2025. For the six months ended June 30, 2026, net interest income was $145.8 million, up $29.1 million or 24.9% when compared to the same period in 2025. The increase in net interest income compared to both prior year periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.

Net interest margin was 3.58% for the second quarter of 2026, remaining consistent with the prior quarter, as increased average earning asset yields were partially offset by higher cost of interest-bearing liabilities, driven by seasonal outflow of municipal deposits resulting in increased borrowings for the quarter. The net interest margin for the second quarter of 2026 increased from 3.08% for the second quarter of 2025. The increase in net interest margin when compared to the prior year quarter was mainly due to growth in average loan balances, improved yields on average earning assets, and lower funding costs. Average yield on securities for the second quarter of 2026 was up 101 basis points over the second quarter of 2025, and the average yield on interest earning assets was up 34 basis points compared to the second quarter of 2025.

Average loans for the quarter ended June 30, 2026 were up $90.4 million, or 1.4% (5.6% annualized), over the quarter ended March 31, 2026, and were up $395.7 million, or 6.5%, compared to the quarter ended June 30, 2025. 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 June 30, 2026 was 5.13%, an increase of 4 basis points from 5.09% for the quarter ended March 31, 2026, and up 34 basis points from 4.79% for the quarter ended June 30, 2025.

Average total deposits of $7.0 billion for the second quarter of 2026 were up $62.2 million or 0.9% compared to the first quarter of 2026, and up $297.3 million, or 4.4%, compared to the second quarter of 2025. The cost of interest-bearing deposits of 2.07% for the second quarter of 2026 was up 1 basis point over the most recent prior quarter, and down 17 basis points from the second quarter of 2025. The ratio of average noninterest bearing deposits to average total deposits for the second quarter of 2026 was 26.9%, which was generally unchanged from the first quarter of 2026 and the second quarter of 2025. The average cost of interest-bearing liabilities for the second quarter of 2026 was 2.24%, an increase of 3 basis points when compared to the most recent prior quarter, and down 20 basis points from the second quarter of 2025.

NONINTEREST INCOME

Noninterest income of $13.1 million for the second quarter of 2026 was down $9.4 million or 41.7%, from the second quarter of 2025. The decrease was primarily attributable to a $9.6 million decline in insurance revenue resulting from the sale of our insurance subsidiary, Tompkins Insurance Agencies, Inc. ("TIA"), in the fourth quarter of 2025. Partially offsetting this decline were increases in fee-based service income, including increases in wealth management fees of $265,000 or 5.3%, service charges on deposit accounts of $26,000 or 1.5%, and card service income of $146,000 or 4.6%. Year-to-date noninterest income of $25.0 million was down $22.6 million or 47.5% compared to the same period in 2025. Contributing to the year-over-year decrease was a $21.2 million decline in insurance revenue due to the sale of TIA, and a $1.9 million, or 28.2% decrease in other income, primarily related to a gain on the sale of other real estate owned in the first quarter of 2025. Partially offsetting this decline were increases in fee-based service income, including increases in wealth management fees of $412,000 or 4.1%, service charges on deposit accounts of $16,000 or 0.5%, and card service income of $162,000 or 2.8%.

NONINTEREST EXPENSE

Noninterest expense was $47.1 million for the second quarter of 2026, down $4.6 million or 8.8% compared to the second quarter of 2025. For the six months ended June 30, 2026, noninterest expense totaled $94.8 million, down $7.4 million, or 7.3%, from the same period in 2025.

The decrease in noninterest expense for both periods was primarily attributable to the sale of TIA in the fourth quarter of 2025. The second quarter and year-to-date periods in 2025 included TIA-related salaries and wages and other employee benefits expenses of $6.2 million and $12.1 million, respectively; and other noninterest expenses of $1.5 million and $2.9 million, respectively. For the three and six months ended June 30, 2026, salaries and wages and other employee benefits decreased $4.7 million, or 14.0%, and $8.0 million, or 12.2%, respectively. These decreases were partially offset by annual merit increases and higher other employee benefit costs.

INCOME TAX EXPENSE

Provision for income tax expense was $9.2 million for an effective rate of 24.0% for the second quarter of 2026, compared to $8.4 million for an effective rate of 24.4% for the most recent prior quarter, and $6.8 million for an effective rate of 24.0% for the second quarter of 2025. For the six months ended June 30, 2026, the provision for income tax expense was $17.6 million with an effective tax rate of 24.2% compared to $12.9 million with an effective tax rate of 23.9% for the same period in 2025.

ASSET QUALITY

The allowance for credit losses was 0.89% of total loans and leases at June 30, 2026, down from 0.90% at March 31, 2026, and 0.95% at June 30, 2025. The decrease in the allowance for credit losses coverage ratio compared to June 30, 2025 was mainly due to the improved economic forecasts for unemployment and gross domestic product. The ratio of the allowance to total nonperforming loans and leases was 111.29% at June 30, 2026, compared to 113.06% at March 31, 2026, and 111.55% at June 30, 2025.

Provision for credit losses for the second quarter of 2026 was $1.5 million, in line with the most recent prior quarter, and down from $2.8 million for the second quarter of 2025. Net charge-offs for the three months ended June 30, 2026 were $1.6 million, compared to $775,000 for the first quarter of 2026, and $5.3 million for the second quarter of 2025. The year-over-year decrease was mainly due to a partial charge-off of $4.7 million during the second quarter of 2025 related to one commercial real estate relationship totaling $18.1 million.

Nonperforming assets of $52.9 million represented 0.60% of total assets at June 30, 2026, up from $51.7 million or 0.59% of total assets at March 31, 2026, and $52.6 million or 0.63% of total assets at June 30, 2025. Loans past due 30-89 days totaled $4.7 million at June 30, 2026, $5.9 million at March 31, 2026, and $5.9 million at June 30, 2025.

Special Mention and Substandard loans and leases totaled $140.0 million at June 30, 2026, compared to $120.4 million reported at March 31, 2026, and $96.8 million reported at June 30, 2025. The increase over the most recent prior quarter end was mainly in Special Mention loans, which were up $17.5 million. The increase in Special Mention loans over March 31, 2026 was mainly a result of five performing loans totaling $18.8 million being downgraded during the second quarter of 2026. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure.

CAPITAL POSITION

Capital ratios at June 30, 2026 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.89% at June 30, 2026, compared to 14.78% at March 31, 2026, and 13.15% at June 30, 2025. The ratio of Tier 1 capital to average assets was 10.69% at June 30, 2026, compared to 10.58% at March 31, 2026, and 9.36% at June 30, 2025.

During the second quarter of 2026, the Company repurchased 11,787 shares of common stock at an aggregate cost of $963,433. These shares were purchased under the Company's 2025 Stock Repurchase Plan. The Company repurchased a total of 35,518 shares of common stock at an aggregate cost of $2.8 million during the first six months of 2026.

LIQUIDITY POSITION

The Company's liquidity position at June 30, 2026 was consistent with its position at March 31, 2026. The Company's sources of liquidity include 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 19.4% of total assets, at June 30, 2026.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Bank & Trust, which offers a full array of products and services, including commercial and consumer banking. Tompkins Bank & Trust 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", "could", "should", "will", "would", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", as well as the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to special mention loans and future growth. 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 of our Annual Report on Form 10-K for the year ended December 31, 2025 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; changes in supervisory and regulatory scrutiny of financial institutions; technological developments and changes; cybersecurity incidents and threats; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the geographic concentration of our business; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact, including market volatility, of national and global events, including the response to bank failures, war and geopolitical matters (including continuing or increasing hostilities in the Middle East and the war in Ukraine), tariffs and trade wars, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises; and the related financial stress on borrowers and changes to customer behavior and credit risk as a result of 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			As of
ASSETS	06/30/2026			12/31/2025
				(Audited)

Cash and noninterest bearing balances due from banks	$	71,691		$	50,717
Interest bearing balances due from banks		76,074			82,100
Cash and Cash Equivalents		147,765			132,817

Available-for-sale debt securities, at fair value (amortized cost of $1,419,889 at June 30, 2026 and $1,391,379 at December 31, 2025)		1,393,061			1,382,068
Held-to-maturity debt securities, at amortized cost (fair value of $281,495 at June 30, 2026 and $283,860 at December 31, 2025)		312,562			312,528
Equity securities, at fair value		791			800
Loans held for sale		129			43,440
Total loans and leases, net of unearned income and deferred costs and fees		6,597,178			6,446,245
Less: Allowance for credit losses		58,479			57,671
Net Loans and Leases		6,538,699			6,388,574

Federal Home Loan Bank and other stock		32,041			32,307
Bank premises and equipment, net		71,242			72,418
Corporate owned life insurance		79,032			77,843
Goodwill		72,736			72,736
Accrued interest and other assets		153,464			152,737
Total Assets	$	8,801,522		$	8,668,268
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		3,793,249			3,742,402
Time		1,305,531			1,298,393
Noninterest bearing		1,930,331			1,896,967
Total Deposits		7,029,111			6,937,762

Federal funds purchased and securities sold under agreements to repurchase		181,710			95,569
Other borrowings		546,358			564,446
Other liabilities		84,411			132,114
Total Liabilities	$	7,841,590		$	7,729,891
EQUITY
Shareholders' equity:
Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,410,189 at June 30, 2026; and 14,449,845 at December 31, 2025		1,442			1,446
Additional paid-in capital		296,831			299,206
Retained earnings		698,243			662,161
Accumulated other comprehensive loss		(32,056	)		(19,054	)
Treasury stock, at cost – 90,521 shares at June 30, 2026, and 104,492 shares at December 31, 2025		(4,528	)		(5,382	)
Total Equity	$	959,932		$	938,377
Total Liabilities and Equity	$	8,801,522		$	8,668,268

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)	Three Months Ended								Six Months Ended
	06/30/2026			03/31/2026			06/30/2025		06/30/2026			06/30/2025
INTEREST AND DIVIDEND INCOME
Loans	$	90,087		$	87,123		$	82,293	$	177,210		$	160,923
Due from banks		193			166			187		359			362
Available-for-sale debt securities		13,896			13,702			9,311		27,598			18,040
Held-to-maturity debt securities		1,222			1,218			1,220		2,440			2,437
Federal Home Loan Bank and other stock		543			460			635		1,003			1,346
Total Interest and Dividend Income		105,941		$	102,669		$	93,646	$	208,610		$	183,108
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		4,192			4,478			4,140		8,670			8,647
Other deposits		22,338			21,531			23,339		43,869			45,482
Federal funds purchased and securities sold under agreements to repurchase		59			18			61		77			102
Other borrowings		5,369			4,781			5,976		10,150			12,085
Total Interest Expense		31,958			30,808			33,516		62,766			66,316
Net Interest Income		73,983			71,861			60,130		145,844			116,792
Less: Provision for credit loss expense		1,502			1,502			2,780		3,004			8,067
Net Interest Income After Provision for Credit Loss Expense		72,481			70,359			57,350		142,840			108,725
NONINTEREST INCOME
Insurance commissions and fees		0			0			9,609		0			21,208
Wealth management fees		5,229			5,266			4,964		10,495			10,083
Service charges on deposit accounts		1,816			1,795			1,790		3,611			3,595
Card services income		3,296			2,642			3,150		5,938			5,776
Other income		2,797			2,136			2,998		4,933			6,867
Net (loss) gain on securities transactions		(4	)		(5	)		1		(9	)		15
Total Noninterest Income		13,134			11,834			22,512		24,968			47,544
NONINTEREST EXPENSE
Salaries and wages		22,955			21,948			26,368		44,903			51,345
Other employee benefits		5,875			6,807			7,162		12,682			14,262
Net occupancy expense of premises		3,296			3,455			3,108		6,751			6,678
Furniture and fixture expense		2,025			2,027			2,069		4,052			3,856
Other operating expense		12,915			13,489			12,916		26,404			26,089
Total Noninterest Expenses		47,066			47,726			51,623		94,792			102,230
Income Before Income Tax Expense		38,549			34,467			28,239		73,016			54,039
Income Tax Expense		9,245			8,393			6,768		17,638			12,889
Net Income	$	29,304			26,074			21,471		55,378			41,150
Basic Earnings Per Share	$	2.06		$	1.83		$	1.51	$	3.89		$	2.89
Diluted Earnings Per Share	$	2.04		$	1.82		$	1.50	$	3.86		$	2.87

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended							Quarter Ended							Quarter Ended
	June 30, 2026							March 31, 2026							June 30, 2025
(dollar amounts in thousands)	Average Balance (QTD)		Interest			Average Yield/Rate		Average Balance (QTD)		Interest			Average Yield/Rate		Average Balance (QTD)		Interest			Average Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	17,416	$	192		4.42	%	$	13,394	$	166		5.03	%	$	15,820	$	187		4.74	%
Securities¹
U.S. Government securities		1,650,865		14,640		3.56	%		1,636,770		14,435		3.58	%		1,610,090		10,026		2.50	%
State and municipal²		79,748		526		2.65	%		81,218		536		2.68	%		85,080		554		2.61	%
Other Securities²		3,293		50		6.09	%		3,305		49		6.01	%		3,279		53		6.48	%
Total securities		1,733,906		15,216		3.52	%		1,721,293		15,020		3.54	%		1,698,449		10,633		2.51	%
FHLBNY and FRB stock		32,128		543		6.78	%		29,016		460		6.43	%		31,660		635		8.05	%
Total loans and leases, net of unearned income^2,3		6,525,286		90,243		5.55	%		6,434,853		87,337		5.50	%		6,129,561		82,499		5.40	%
Total interest-earning assets		8,308,736		106,194		5.13	%		8,198,556		102,983		5.09	%		7,875,490		93,954		4.79	%
Other assets		352,338							382,767							293,105
Total assets	$	8,661,074						$	8,581,323						$	8,168,595
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,855,494	$	16,359		1.70	%	$	3,823,812	$	15,589		1.65	%	$	3,680,761	$	16,504		1.80	%
Time deposits		1,280,086		10,171		3.19	%		1,285,701		10,420		3.29	%		1,230,182		10,975		3.58	%
Total interest-bearing deposits		5,135,580		26,530		2.07	%		5,109,513		26,009		2.06	%		4,910,943		27,479		2.24	%
Federal funds purchased & securities sold under agreements to repurchase		40,636		59		0.58	%		42,788		18		0.17	%		42,123		61		0.58	%
Other borrowings		550,041		5,369		3.92	%		491,310		4,781		3.95	%		550,558		5,976		4.35	%
Total interest-bearing liabilities		5,726,257		31,958		2.24	%		5,643,611		30,808		2.21	%		5,503,624		33,516		2.44	%
Noninterest bearing deposits		1,891,560							1,855,440							1,818,922
Accrued expenses and other liabilities		89,540							130,879							96,074
Total liabilities		7,707,357							7,629,930							7,418,620
Total equity		953,717							951,393							749,975
Total liabilities and equity	$	8,661,074						$	8,581,323						$	8,168,595
Interest rate spread						2.89	%						2.88	%						2.34	%
Tax-equivalent net interest income/margin on earning assets				74,236		3.58	%				72,175		3.57	%				60,438		3.08	%
Tax-equivalent adjustment				(253	)						(314	)						(308	)
Net interest income			$	73,983						$	71,861						$	60,130

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Year to Date Period Ended							Year to Date Period Ended
	June 30, 2026							June 30, 2025
(dollar amounts in thousands)	Average Balance (YTD)		Interest			Average Yield/Rate		Average Balance (YTD)		Interest			Average Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	15,416	$	359		4.70	%	$	16,121	$	362		4.53	%
Securities¹
U.S. Government securities		1,643,856		29,075		3.57	%		1,604,469		19,467		2.45	%
State and municipal²		80,479		1,062		2.66	%		85,484		1,108		2.61	%
Other securities		3,299		99		6.05	%		3,277		106		6.52	%
Total securities		1,727,634		30,236		3.53	%		1,693,230		20,681		2.46	%
FHLBNY and FRB stock		30,581		1,003		6.61	%		31,821		1,346		8.53	%
Total loans and leases, net of unearned income^2,3		6,480,319		177,581		5.53	%		6,077,749		161,335		5.35	%
Total interest-earning assets		8,253,950		209,179		5.11	%		7,818,921		183,724		4.74	%
Other assets		367,469							293,975
Total assets	$	8,621,419						$	8,112,896
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,839,741	$	31,947		1.68	%	$	3,681,535	$	32,597		1.79	%
Time deposits		1,282,878		20,593		3.24	%		1,194,807		21,532		3.63	%
Total interest-bearing deposits		5,122,619		52,540		2.07	%		4,876,342		54,129		2.24	%
Federal funds purchased & securities sold under agreements to repurchase		41,706		77		0.37	%		44,873		102		0.46	%
Other borrowings		520,838		10,149		3.93	%		556,239		12,085		4.38	%
Total interest-bearing liabilities		5,685,163		62,766		2.23	%		5,477,454		66,316		2.44	%
Noninterest bearing deposits		1,873,599							1,799,169
Accrued expenses and other liabilities		110,095							97,170
Total liabilities		7,668,857							7,373,793
Total equity		952,562							739,103
Total liabilities and equity	$	8,621,419						$	8,112,896
Interest rate spread						2.88	%						2.30	%
Net interest income (TE)/margin on earning assets				146,413		3.58	%				117,408		3.03	%
Tax Equivalent Adjustment				(569	)						(616	)
Net interest income			$	145,844						$	116,792

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)
	Quarter-Ended										Year-Ended
Period End Balance Sheet	Jun-26		Mar-26		Dec-25		Sep-25		Jun-25		Dec-25
Securities	$	1,706,414	$	1,702,250	$	1,695,396	$	1,604,357	$	1,588,647	$	1,695,396
Total Loans		6,597,178		6,477,943		6,446,245		6,288,071		6,172,654		6,446,245
Allowance for credit losses		58,479		58,108		57,671		59,889		58,555		57,671
Total assets		8,801,522		8,695,761		8,668,268		8,468,731		8,373,818		8,668,268
Total deposits		7,029,111		7,054,172		6,937,762		7,053,070		6,715,795		6,937,762
Brokered deposits		169,014		109,712		114,391		145,223		138,787		114,391
Federal funds purchased and securities sold under agreements to repurchase		181,710		118,133		95,569		80,804		127,111		95,569
Other borrowings		546,358		449,446		564,446		444,866		672,696		564,446
Total equity		959,932		946,741		938,377		788,805		761,793		938,377

Average Balance Sheet
Average earning assets	$	8,308,736	$	8,198,556	$	8,058,427	$	7,967,674	$	7,875,490	$	7,916,783
Average assets		8,661,074		8,581,323		8,372,287		8,297,448		8,168,595		8,224,794
Average interest-bearing liabilities		5,726,257		5,643,611		5,484,440		5,530,563		5,503,624		5,492,601
Average equity		953,717		951,393		875,658		771,527		749,975		781,695

Share data
Weighted average shares outstanding (basic)		14,224,972		14,250,969		14,270,206		14,248,533		14,246,395		14,252,810
Weighted average shares outstanding (diluted)		14,333,390		14,347,514		14,356,680		14,345,219		14,320,125		14,335,358
Period-end shares outstanding		14,382,196		14,392,337		14,420,495		14,431,300		14,430,985		14,420,495
Common equity book value per share	$	66.74	$	65.78	$	65.07	$	54.66	$	52.79	$	65.07
Tangible book value per share (Non-GAAP)**	$	61.68	$	60.73	$	60.03	$	48.19	$	46.31	$	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	$	73,983	$	71,861	$	69,061	$	63,878	$	60,130	$	249,731
Provision for credit loss expense		1,502		1,502		977		2,490		2,780		11,534
Noninterest income		13,134		11,834		125,763		23,564		22,512		196,871
Noninterest expense		47,066		47,726		54,135		53,847		51,623		210,212
Income tax expense		9,245		8,393		43,464		7,432		6,768		63,785
Net income attributable to Tompkins Financial Corporation		29,304		26,074		96,248		23,673		21,471		161,071
Basic earnings per share⁴		2.06		1.83		6.74		1.66		1.51		11.30
Diluted earnings per share⁴		2.04		1.82		6.70		1.65		1.50		11.24

Nonperforming Assets
Nonaccrual loans and leases	$	52,426	$	51,271	$	47,794	$	52,805	$	52,325	$	47,794
Loans and leases 90 days past due and accruing		122		124		146		166		166		146
Total nonperforming loans and leases		52,548		51,395		47,940		52,971		52,491		47,940
OREO		384		269		229		0		81		229
Total nonperforming assets	$	52,932	$	51,664	$	48,169	$	52,971	$	52,572	$	48,169

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

	Quarter-Ended										Year-Ended
Delinquency - Total loan and lease portfolio	Jun-26		Mar-26		Dec-25		Sep-25		Jun-25		Dec-25
Loans and leases 30-89 days past due and
accruing	$	4,666	$	5,874	$	8,806	$	7,841	$	5,857	$	8,806
Loans and leases 90 days past due and accruing		122		124		146		166		166		146
Total loans and leases past due and accruing		4,788		5,998		8,952		8,007		6,023		8,952

Allowance for Credit Losses
Balance at beginning of period	$	58,108		$	57,671	$	59,889		$	58,555	$	61,023		$	56,496
Provision for credit losses		1,962			1,212		1,064			2,454		2,786		$	11,564
Net loan and lease charge-offs (recoveries)		1,591			775		3,282			1,120		5,254		$	10,389
Allowance for credit losses at end of period	$	58,479		$	58,108	$	57,671		$	59,889	$	58,555		$	57,671

Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period	$	1,723		$	1,433	$	1,520		$	1,484	$	1,490		$	1,463
Provision (credit) for credit losses		(460	)		290		(87	)		36		(6	)	$	(30	)
Allowance for credit losses at end of period	$	1,263		$	1,723	$	1,433		$	1,520	$	1,484		$	1,433

Loan Classification - Total Portfolio
Special Mention	$	83,631	$	66,104	$	100,717	$	88,398	$	40,048	$	100,717
Substandard		56,380		54,331		33,764		55,762		56,740		33,764

Ratio Analysis

Credit Quality
Nonperforming loans and leases/total loans and leases	0.80	%	0.79	%	0.74	%	0.84	%	0.85	%	0.74	%
Nonperforming assets/total assets	0.60	%	0.59	%	0.56	%	0.63	%	0.63	%	0.56	%
Allowance for credit losses/total loans and leases	0.89	%	0.90	%	0.89	%	0.95	%	0.95	%	0.89	%
Allowance/nonperforming loans and leases	111.29	%	113.06	%	120.30	%	113.06	%	111.55	%	120.30	%
Net loan and lease losses (recoveries) annualized/total average loans and leases	0.10	%	0.05	%	0.21	%	0.07	%	0.34	%	0.17	%

Capital Adequacy
Tier 1 Capital (to average assets)	10.69	%	10.58	%	10.62	%	9.41	%	9.36	%	10.62	%
Total Capital (to risk-weighted assets)	14.89	%	14.78	%	14.56	%	13.27	%	13.15	%	14.56	%

Profitability (period-end)
Return on average assets *	1.36	%	1.23	%	4.56	%	1.13	%	1.05	%	1.96	%
Return on average equity *	12.32	%	11.11	%	43.61	%	12.17	%	11.48	%	20.61	%
Net interest margin (TE) *	3.58	%	3.57	%	3.42	%	3.20	%	3.08	%	3.17	%
Average yield on interest-earning assets*	5.13	%	5.09	%	4.98	%	4.90	%	4.79	%	4.84	%
Average cost of deposits*	1.51	%	1.51	%	1.58	%	1.64	%	1.64	%	1.62	%
Average cost of funds*	1.68	%	1.67	%	1.71	%	1.83	%	1.84	%	1.80	%
* Quarterly ratios have been annualized

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

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the below 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
	Jun-26		Mar-26		Dec-25		Sep-25		Jun-25		Dec-25
Common equity book value per share (GAAP)	$	66.74	$	65.78	$	65.07	$	54.66	$	52.79	$	65.07
Total common equity	$	959,932	$	946,741	$	938,377	$	788,805	$	761,793	$	938,377
Less: Goodwill and intangibles*		72,766		72,766		72,766		93,405		93,503		72,766
Tangible common equity (Non-GAAP)		887,166		873,975		865,611		695,400		668,290		865,611
Ending shares outstanding		14,382,196		14,392,337		14,420,495		14,431,300		14,430,985		14,420,495
Tangible book value per share (Non-GAAP)	$	61.68	$	60.73	$	60.03	$	48.19	$	46.31	$	60.03
*The decline in goodwill for the fourth quarter of 2025 over the prior periods shown in the table reflects the sale of TIA.

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 2026 and 2025 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, 2025.

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/20260724099543/en/

For more information contact:

Stephen S. Romaine, President & CEO

Matthew Tomazin, Executive VP & CFO

Tompkins Financial Corporation (888) 503-5753