Tompkins Financial Corporation · AMEX:TMP
Tompkins Financial — Shareholder Meeting (May 2023)
37 slides from Tompkins Financial's shareholder meeting presentation, May 9, 2023
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting May 9, 2023 TOMPKINS ® FINANCIAL
Slide 2: Greg Hartz, President
Greg Hartz, President Tompkins Community Bank — CNY Market
Slide 3: Commitment to Our Communities
TOMPKINS #% BANKING | INSURANCE | WEALTH Commitment to Our Communities * Women Build Neekend ite e' woman > ‘aFagmpifference, 2 iid
Slide 4: Tom Rochon, Chair
Tom Rochon, Chair Tompkins Financial Corp.
Slide 5: Forward-looking statements
TOMPKINS BANKING | INSURANCE | WEALTH This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's expectations and beliefs concerning future events impacting the Company
Slide 6: Steve Romaine, President & CEO
Steve Romaine, President & CEO Tompkins Financial Corp.
Slide 7: Diluted earnings per share $5.89
TOMPKINS BANKING | INSURANCE | WEALTH Diluted earnings per share $5.89 Net income $85 million Net deferred loan fees (PPP) Continue to wind down as program ends Net credit recoveries, nonperforming loans Remain near historic lows
Slide 8: Q1 2023 diluted earnings per share and net income
TOMPKINS BANKING | INSURANCE | WEALTH Diluted earnings per share Net income Variance Drivers Key profitability measures $1.35, in line with immediate prior quarter, down from Q1 2022 $19.4 million, down from Q1 2022 Increased funding costs, reduced income from PPP and increased operating expenses Re
Slide 9: Banking | Insurance | Wealth
TOMPKINS BANKING | INSURANCE | WEALTH TOMPKINS 8% BANKING | INSURANCE | WEALTH
Slide 10: Companywide initiative: Deposit gathering and retention
TOMPKINS BANKING | INSURANCE | WEALTH Companywide initiative: Deposit gathering and retention — Deposit Dash __ snost bah AY Coupled with other initiatives _—_—— * Cash Management talent/product offerings * Deposit pricing and product development ° eSign * Online account opening
Slide 11: Commercial, Residential and Specialty Lending
TOMPKINS BANKING | INSURANCE | WEALTH Commercial Lending : Residential Lending i Specialty Lending Loan portfolio stable, : Impacted by rising rates : Future opportunities eatly.sipns of growth * Rate Modification Loan © Clean Energy Program * No Closing Cost Mortgage
Slide 12: Insurance Agencies and Financial Advisors
TOMPKINS BANKING | INSURANCE | WEALTH TOMPKINS 8% TOMPKINS 8% Insurance Agencies Financial Advisors PLANNING | TRUSTS | INVESTMENTS
Slide 13: Boards of Directors
TOMPKINS #% Boards of Directors BANKING | INSURANCE | WEALTH Craig Yunker Frank Milewski
Slide 14: Recruiting, supporting and retaining through
TOMPKINS BANKING | INSURANCE | WEALTH Recruiting, supporting and retaining through: * Remote and hybrid work options * Employee referral program * New team member ambassador program * Diversity, Inclusion and Belonging initiatives
Slide 15: Senior Leadership
TOMPKINS #% Senior Leadership BANKING | INSURANCE | WEALTH John Greg Alyssa McKenna Hartz Fontaine Diane Johanna Frank Torcello Anderson Fetsko
Slide 16: Commitment to Our Communities
TOMPKINS #% BANKING | INSURANCE | WEALTH Commitment to Our Communities
Slide 17: Together
TOMPKINS BANKING | INSURANCE | WEALTH TOGETHER
Slide 18: Frank M. Fetsko, CFO & COO
Frank M. Fetsko, CFO & COO Tompkins Financial Corp.
Slide 19: Long-standing commitment to sustainable performance
TOMPKINS BANKING | INSURANCE | WEALTH Long-standing commitment to sustainable performance Profitable every year since at least 1942, and remains profitable Return on equity for 12 months ended March 31, 2023 above the average over the past 10 years Ratio of Total Capital to Risk-weighted assets is a
Slide 20: Federal Funds Rate and Treasury yield curve
5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 12/01/2018 03/01/2019 06/01/2019 Federal Funds Rate Saegseessas SRRRERRE RS S88SSSS8SSS8 SSSEeEsSseER sssgssasss Rak 8 oe aes ses 09/01/2022 12/01/2022 03/01/2023 TOMPKINS BANKING | INSURANCE | WEALTH Rapid decline in rates followed by rapid ris
Slide 21: Quarterly Change in Deposits
TOMPKINS BANKING | INSURANCE | WEALTH Quarterly Change in Deposits $ Billions 1,200 - 1,000 800 + 600 + “ale gl tt tl -200 ~ ° -400 ~ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: FDIC.
Slide 22: Impact on Banking Sector
TOMPKINS BANKING | INSURANCE | WEALTH Impact on Banking Sector * Tangible equity dilution * Narrowing Bank Net Interest Margins * Liquidity Stress in some institutions
Slide 23: Diluted EPS: Year
TOMPKINS BANKING | INSURANCE | WEALTH 22:00 TMP Diluted EPS: 10 Year $6.00 Compound Annual Growth Rate of 9% 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y
Slide 24: Quarterly Diluted EPS
$2.00 $1.50 $1.00 $0.50 $0.00 1.54 Q2 2021 Diluted EPS 1.60 1.45 1.45 18 1.33 1.36 1.35 Q3 2021 Q42021 Q12022 Q22022 Q32022 Q42022 Qi 2023 TOMPKINS BANKING | INSURANCE | WEALTH Q1 2023 GAAP EPS is approximately unchanged from last quarter Q1 2023 is down approximately 15.6% from Q1 2022
Slide 25: Annual Cash Dividend Trends
Annual Cash Dividend Trends TOMPKINS BANKING | INSURANCE | WEALTH $2.50 TMP Cash Dividend: 10 Year Compound Annual % $2.00 Growth Rate of 5% 2 n & $1.50 aol <7 3 5 $1.00 2 <£ 5 S $0.50 $0.00 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y
Slide 26: Profitability
TOMPKINS Profi tabi | ity BANKING | INSURANCE | WEALTH ROAE ROAA NIM 14% 1.40% 4.00% 12% 1.20% 10% 1.00% 3.00% 9 0.80% a% ° 2.00% 6% 0.60% 4% 0.40% 1.00% 2% 0.20% 0% 0.00% 0.00% A Sd A A A A gd A A A of =~ sh x a * ‘2 ‘) oe 1y \v > BD AD aS AV a> SP SP eK LLL LS PPS SN catmp -—FrB Peer (2) CITMP —FR
Slide 27: Annual Loan Growth
TOMPKINS Annual Loan Growth BANKING | INSURANCE | WEALTH Total Loans $6,000 * Loan Growth: 5 year Compound Annual 35,000 Growth Rate of 2.4% $4,000 * Loan growth in 2022 o was approximately & $3,000 3.8% E * Excluding PPP Loans, 92,000 growth of 5.3% in 2022 $1,000 so 2017Y 2018Y 2019Y 2020Y 2021Y 2
Slide 28: Nonperforming Assets / Total Assets
TOMPKINS BANKING | INSURANCE | WEALTH Nonperforming Assets / Total Assets 2.50% * Nonperforming assets as a percentage of total assets is below 2.00% Pre-Pandemic levels in 2019 1.50% * Loan Loss Reserve coverage of nonperforming loans is at the highest level in the past 10 quarters 1.00% 0.50% 0.00
Slide 29: Total Deposits
TOMPKINS BANKING | INSURANCE | WEALTH Total Deposits $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 (in thousands) $2,000,000 $1,000,000 30 2017Y 2018Y 2019Y 2020Y 2021Y 2022 Dinterest Bearing 3,399,882 3,490,485 3,755,700 4,508,167 4,655,699 4,452,150 4,499,430 BNoninterest Bearing 1,437,92
Slide 30: Total Revenue
TOMPKINS BANKING | INSURANCE | WEALTH Total Revenue $350,000 TMP Total Revenue: 5 $300,000 Year Compound Annual Growth Rate of 2.7% $250,000 $200,000 $150,000 (in thousands) $100,000 $50,000 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y HNoninterest Income 69,204 77,449 75,433 73,860 78,849 77,972 Net Interes
Slide 31: Diversified Revenue Sources
TOMPKINS Diversified Revenue Sources Be ie TMC | ware Insurance, $36.2 . . 25.3% noninterest income for full year 2022 vs. FRB peer average" of Investment 19.6% Services, $18.1 . Service Charges on Deposits, $7.4 Card Services, Other, $5.3 (1) Federal Reserve Peer Group consisting of bank holding co
Slide 32: Consistently Well Capitalized
TOMPKINS BANKING | INSURANCE | WEALTH Consistently Well Capitalized Tier 1 Ratio Total Capital Ratio 10% 9% 16% 8% 14% 1% 12% a threshold 8% 3% 6% 2% 4% 1% 2% 0% 0% 2018Y 2019Y 2020Y 2021Y 2022Y Q12023 2018Y 2019Y 20207 2021Y 2022Y Q12023 * Repurchased 197,979 shares at an average price of $77.94 in
Slide 33: I Se
TOMPKINS BANKING | INSURANCE | WEALTH I Se 1 -25.89 @ -4.70 5.64% © ; © May 2.2023 KRX Index* -26.48 @ -3.61 @ 5.84% @ 3 ; rn ACBQ Index* -28.23 @ 6.64 @ 3.51% @ Proxy Peer Group Avg -28.81 @ 5.65 O 5.83% © P/LTM P/TBV EPS 9.74x @ 1.44x @ Banks $5-$25B in 7.87x @ 1.27x @ Assets Proxy Peer Group Avg
Slide 34: Profitable for at least consecutive years
TOMPKINS BANKING | INSURANCE | WEALTH Profitable for at least 80 consecutive years Record Earnings in 45 of last 50 years Revenue per share has increased for more than 10 consecutive years Cash dividends increased for 34 consecutive years Cash dividends paid for 144 consecutive years
Slide 35: Preliminary Voting Results
Preliminary Voting Results
Slide 36: Questions & Answers
Questions & Answers
Slide 37: Closing Remarks
Closing Remarks