Tompkins Financial Corporation Reports Increased Fourth Quarter Financial Results

About this update from Tompkins Financial Corporation

Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.37 for the fourth quarter of 2024, up 5.4% and 30.5% compared to the immediate prior quarter and the fourth quarter of 2023, respectively. Net income for the fourth quarter of 2024 was $19.7 million, up $1.0 million or 5.5% compared to the third quarter of 2024, and up $4.7 million, or 31.0%, when compared to the fourth quarter of 2023. For the year ended December 31, 2024, diluted earnings per share of $4.97 were up 653.0% compared to the year ended December 31, 2023. Net income for 2024 was $70.9 million, an increase of $61.3 million compared to 2023. The 2023 results included an after-tax loss of $52.9 million or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities. Earnings performance for 2024 benefited from increased net interest income, growth in fee-based businesses and lower operating expenses. Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report increased earnings for the year and fourth quarter of 2024. Our improved results were driven by growth in revenue and lower operating expense. Revenue growth was broad and supported by strong loan growth, deposit growth, and growth in our fee-based businesses. Our fourth quarter ended the year with 9.4% annualized loan growth, 14 basis points of net interest margin expansion and improving profitability metrics. We look forward to the new year as we believe we remain well positioned to continue to drive growth through quality customer relationships." SELECTED HIGHLIGHTS FOR THE PERIOD: Net interest margin for the fourth quarter of 2024 was 2.93%, improved from the immediate prior quarter of 2.79%, and 2.82% for the same period of 2023. Total average cost of funds of 1.88% for the fourth quarter of 2024 was down 13 basis points compared to the third quarter of 2024, as a result of funding mix and lower interest rates. Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the fourth quarter of 2024 were up $1.3 million or 7.7% compared to the fourth quarter of 2023. Total noninterest expenses for the fourth quarter of 2024 were in line with the third quarter of 2024, and down $1.3 million or 2.6% compared to the fourth quarter of 2023. Total loans at December 31, 2024 were up $138.7 million, or 2.4% compared to September 30, 2024 (9.4% on an annualized basis), and up $414.0 million, or 7.4%, from December 31, 2023. Total deposits at December 31, 2024 were $6.5 billion, down $106.1 million, or 1.6%, from September 30, 2024, and up $72.0 million, or 1.1%, from December 31, 2023. Loan to deposit ratio at December 31, 2024 was 93.0%, compared to 89.4% at September 30, 2024, and 87.6% at December 31, 2023. Regulatory Tier 1 capital to average assets was 9.27% at December 31, 2024, up compared to 9.19% at September 30, 2024, and 9.08% at December 31, 2023. NET INTEREST INCOME Net interest income was $56.3 million for the fourth quarter of 2024, up $3.1 million or 5.8% compared to the third quarter of 2024, and up $3.9 million or 7.5% compared to the fourth quarter of 2023. The increase in net interest income compared to the third quarter of 2024 was due to improvement in net interest margin, which is explained further below, and an increase in average loan balances. The increase when compared to the fourth quarter of 2023 was due to increases in both average loan balances and average loan yields, and was partially offset by higher average funding costs. For the year ended December 31, 2024, net interest income was $211.1 million, an increase of $1.6 million or 0.8% when compared to the year ended December 31, 2023. The increase reflects growth in average loan balances and higher yields on average earning assets, partially offset by higher average cost of funds. Net interest margin was 2.93% for the fourth quarter of 2024, up 14 basis points when compared to the immediate prior quarter, and up 11 basis points from 2.82% for the fourth quarter of 2023. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to lower funding costs resulting from growth in average deposits and lower market rates. The increase in net interest margin when compared to the same period prior year was mainly a result of higher yields on average interest earning assets and higher average loan balances, and was partially offset by higher average funding costs. Average loans for the quarter ended December 31, 2024 were up $100.9 million, or 1.7%, from the third quarter of 2024, and were up $445.1 million, or 8.1%, compared to the 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, 2024 was 4.67%, a slight increase from 4.66% for the quarter ended September 30, 2024, and up from 4.34% for the quarter ended December 31, 2023. Average total deposits of $6.6 billion for the fourth quarter of 2024 were up $217.3 million, or 3.4%, compared to the third quarter of 2024, and up $91.9 million or 1.4% compared to the same period in 2023. The cost of interest-bearing deposits of 2.31% for the fourth quarter of 2024 was down 4 basis points from 2.35% for the third quarter of 2024, and up 27 basis points from 2.04% for the fourth quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2024 was 28.0% compared to 28.9% for the third quarter of 2024, and 29.6% for the fourth quarter of 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2024 of 2.53% represents a decrease of 18 basis points over the third quarter of 2024, and an increase of 28 basis points over the same period in 2023. NONINTEREST INCOME Noninterest income of $20.8 million for the fourth quarter of 2024 was up $2.0 million or 10.5% compared to the same period in 2023. The increase in quarterly noninterest income when compared to the same period in 2023 was mainly due to increases in fee-based revenues, which includes insurance commissions and fees, up $698,000 or 9.0%; wealth management fees, up $456,000 or 10.3%; service charges on deposit accounts, up $81,000 or 4.6%; and card services income, up $60,000 or 2.1%. Other income was up $763,000 or 38.6% for the quarter ended December 31, 2024 compared to the same period in 2023, and included increases in gains on loan sales and derivative swap fee income. Noninterest income of $88.1 million for the year ended December 31, 2024 was up $77.9 million or 760.5% compared to the year ended December 31, 2023. The increase in noninterest income compared to 2023 was mainly due to the $70.0 million pre-tax loss on the sale of available-for-sale debt securities in 2023 as discussed above. Also contributing to the increase for the year ended December 31, 2024 over the prior year were fee-based revenues, which includes insurance commissions and fees, up $1.7 million or 4.7%; wealth management fees, up $1.6 million or 9.1%; service charges on deposit accounts, up $375,000 or 5.4%; and card services income, up $569,000 or 5.0%. Other income was up $3.6 million for the year ended December 31, 2024 compared to 2023, and included increases in gains on loan sales, derivative swap fee income and earnings on bank-owned life insurance. NONINTEREST EXPENSE Noninterest expense was $50.0 million for the fourth quarter of 2024, down $1.3 million or 2.6% compared to the fourth quarter of 2023. Other operating expenses for the quarter were down $3.0 million or 20.4% from the same period prior year and included decreases in technology, down $1.1 million; marketing, down $665,000; other losses, down $364,000; and professional fees, down $242,000. Noninterest expense for the year ended December 31, 2024 was $199.6 million, a decrease of $3.7 million or 1.8% compared to the $203.3 million reported for 2023. The year-over-year decrease was mainly driven by lower other operating expenses, which were down $5.1 million or 9.1% and included decreases in technology, down $1.3 million; marketing, down $1.2 million; professional fees, down $1.0 million; retirement plan expense, down $709,000; and travel and meeting expense, down $667,000. Partially offsetting these decreases, FDIC insurance expense was up $1.4 million or 32.5% year-over-year. INCOME TAX EXPENSE The provision for income tax expense for the fourth quarter of 2024 was $6.0 million for an effective rate of 23.5%, compared to a provision for tax expense of $3.1 million and an effective rate of 17.2% for the same quarter in 2023. For the year ended December 31, 2024, the provision for income tax expense was $22.0 million and the effective tax rate was 23.7% compared to tax expense of $2.5 million and an effective tax rate of 20.6% for 2023. Increased tax expense for both the quarter and year-to-date periods in 2024 was mainly a result of lower income in 2023 associated with the loss on the sale of securities described above. In 2024, the Company's average assets exceeded the $8.0 billion threshold for receiving certain New York State tax benefits associated with the Company’s real estate investment trust (“REIT”) subsidiaries. Therefore, the Company did not recognize any tax benefit in connection with the REITs in 2024. In the fourth quarter of 2024, the Company’s bank subsidiary approved the dissolution of the REITs. ASSET QUALITY The allowance for credit losses represented 0.94% of total loans and leases at December 31, 2024, unchanged compared to the most recent prior quarter, and up from 0.92% reported at December 31, 2023. The year over year increase in the allowance for credit losses coverage ratio includes changes for qualitative factors relating to loan growth and asset quality, model assumptions changes, and updates to economic forecasts for unemployment and GDP. The increase in allowance for credit losses was partially offset by lower off-balance sheet reserves due to model changes related to utilization rates and a decrease in loan pipeline. The ratio of the allowance to total nonperforming loans and leases was 111.06% at December 31, 2024, compared to 88.51% at September 30, 2024, and 82.84% at December 31, 2023. The increase in the ratio compared to the same prior year period was due to the decrease in nonperforming loans and leases discussed in more detail below. Provision for credit losses for the fourth quarter of 2024 was $1.4 million compared to $1.8 million for the same period in 2023. Provision for credit losses for the year ended December 31, 2024 was $6.6 million compared to $4.3 million for the year ended December 31, 2023. The increase in provision expense for the full year compared to 2023 was mainly driven by loan growth, an increase in net charge-offs and model assumption updates. Net charge-offs for the three months and year ended December 31, 2024 were $857,000 and $2.5 million, respectively, compared to net charge-offs of $410,000 and $1.6 million for the same periods in 2023. Nonperforming assets represented 0.80% of total assets at December 31, 2024, unchanged from December 31, 2023 but up slightly compared to 0.78% at September 30, 2024. At December 31, 2024, nonperforming loans and leases totaled $50.9 million, compared to $62.6 million at September 30, 2024 and $62.3 million at December 31, 2023. The decrease in nonperforming loans and leases at December 31, 2024 compared to December 31, 2023 was due to one commercial real estate loan for $14.2 million being moved from nonperforming loans to other real estate owned. The increase in loans past due 30-89 days at December 31, 2024 compared to prior quarter end and December 31, 2023 was mainly due to the inclusion of a $17.4 million commercial real estate loan. Special Mention and Substandard loans and leases totaled $111.1 million at December 31, 2024, compared to $126.0 million reported at September 30, 2024, and $123.1 million reported at December 31, 2023. The decrease was mainly due to the reclassification of one commercial real estate loan from nonperforming loans to other real estate owned as mentioned above. CAPITAL POSITION Capital ratios at December 31, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.08% at December 31, 2024, compared to 13.21% at September 30, 2024, and 13.36% at December 31, 2023. The decrease in the ratio is mainly a result of loan growth during the fourth quarter of 2024. The ratio of Tier 1 capital to average assets was 9.27% at December 31, 2024, compared to 9.19% at September 30, 2024, and 9.08% at December 31, 2023. LIQUIDITY POSITION The Company's liquidity position at December 31, 2024 was stable and consistent with the immediate prior quarter end. 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 Banks (FHLB) advances. The Company maintained ready access to liquidity of $1.3 billion, or 16.4% of total assets at December 31, 2024. 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 the sufficiency of existing collateral to cover exposure related to nonperforming 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 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 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 potential market volatility, of national and global events, including the response to bank failures, war and geopolitical matters (including the war in Israel and surrounding regions and the war in Ukraine), 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 12/31/2024 12/31/2023     (Audited)       Cash and noninterest bearing balances due from banks $ 53,635   $ 67,212   Interest bearing balances due from banks   80,763     12,330   Cash and Cash Equivalents   134,398     79,542         Available-for-sale debt securities, at fair value (amortized cost of $1,367,123 at December 31, 2024 and $1,548,482 at December 31, 2023)   1,231,532     1,416,650   Held-to-maturity debt securities, at amortized cost (fair value of $267,295 at December 31, 2024 and $267,455 at December 31, 2023)   312,462     312,401   Equity securities, at fair value   768     787   Total loans and leases, net of unearned income and deferred costs and fees   6,019,922     5,605,935   Less: Allowance for credit losses   56,496     51,584   Net Loans and Leases   5,963,426     5,554,351         Federal Home Loan Bank and other stock   42,255     33,719   Bank premises and equipment, net   76,626     79,687   Corporate owned life insurance   76,448     67,884   Goodwill   92,602     92,602   Other intangible assets, net   2,203     2,327   Accrued interest and other assets   176,360     179,799   Total Assets $ 8,109,080   $ 7,819,749   LIABILITIES     Deposits:     Interest bearing:     Checking, savings and money market   3,558,946     3,484,878   Time   1,068,375     998,013   Noninterest bearing   1,844,484     1,916,956   Total Deposits   6,471,805     6,399,847         Federal funds purchased and securities sold under agreements to repurchase   37,036     50,996   Other borrowings   790,247     602,100   Other liabilities   96,548     96,872   Total Liabilities $ 7,395,636   $ 7,149,815   EQUITY     Tompkins Financial Corporation shareholders' equity:     Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,468,013 at December 31, 2024; and 14,441,830 at December 31, 2023   1,447     1,444   Additional paid-in capital   300,073     297,183   Retained earnings   537,157     501,510   Accumulated other comprehensive loss   (118,492 )   (125,005 ) Treasury stock, at cost – 131,497 shares at December 31, 2024, and 132,097 shares at December 31, 2023   (6,741 )   (6,610 ) Total Tompkins Financial Corporation Shareholders’ Equity   713,444     668,522   Noncontrolling interests   0     1,412   Total Equity $ 713,444   $ 669,934   Total Liabilities and Equity $ 8,109,080   $ 7,819,749         TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended   12/31/2024 09/30/2024 12/31/2023 12/31/2024 12/31/2023 INTEREST AND DIVIDEND INCOME           Loans $ 78,911   $ 77,814 $ 69,035 $ 301,970 $ 260,434   Due from banks   235     168   227   741   674   Available-for-sale debt securities   8,760     9,037   9,717   36,779   29,677   Held-to-maturity debt securities   1,222     1,222   1,222   4,881   4,876   Federal Home Loan Bank and other stock   894     888   584   3,203   1,697   Total Interest and Dividend Income   90,022   $ 89,129 $ 80,785 $ 347,574 $ 297,358   INTEREST EXPENSE           Time certificates of deposits of $250,000 or more   4,698     4,158   3,949   16,914   11,421   Other deposits   22,856     22,553   19,526   87,069   59,387   Federal funds purchased and securities sold under agreements to repurchase   11     11   14   46   58   Other borrowings   6,176     9,214   4,937   32,443   16,978   Total Interest Expense   33,741     35,936   28,426   136,472   87,844   Net Interest Income   56,281     53,193   52,359   211,102   209,514   Less: Provision for credit loss expense   1,411     2,174   1,761   6,611   4,339   Net Interest Income After Provision for Credit Loss Expense   54,870     51,019   50,598   204,491   205,175   NONINTEREST INCOME           Insurance commissions and fees   8,471     11,283   7,773   39,100   37,351   Wealth management fees   4,878     4,925   4,422   19,589   17,951   Service charges on deposit accounts   1,854     1,872   1,773   7,288   6,913   Card services income   2,919     2,921   2,859   12,057   11,488   Other income   2,740     2,299   1,977   10,061   6,511   Net gain (loss) on securities transactions   (33 )   85   46   32   (69,973 ) Total Noninterest Income   20,829     23,385   18,850   88,127   10,241   NONINTEREST EXPENSE           Salaries and wages   25,870     25,664   23,710   101,150   97,370   Other employee benefits   7,429     6,276   6,626   26,661   27,333   Net occupancy expense of premises   2,873     3,065   3,544   12,634   13,278   Furniture and fixture expense   1,834     1,797   2,425   7,666   8,663   Amortization of intangible assets   90     86   84   332   334   Other operating expense   11,870     12,989   14,911   51,199   56,314   Total Noninterest Expenses   49,966     49,877   51,300   199,642   203,292   Income Before Income Tax Expense   25,733     24,527   18,148   92,976   12,124   Income Tax Expense   6,045     5,858   3,114   22,003   2,495   Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation   19,688     18,669   15,034   70,973   9,629   Less: Net Income Attributable to Noncontrolling Interests   30     31   31   123   124   Net Income Attributable to Tompkins Financial Corporation $ 19,658     18,638   15,003   70,850   9,505   Basic Earnings Per Share $ 1.38   $ 1.31 $ 1.06 $ 4.98 $ 0.66   Diluted Earnings Per Share $ 1.37   $ 1.30 $ 1.05 $ 4.97 $ 0.66   Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)   Quarter Ended Quarter Ended   December 31, 2024 September 30, 2024   Average     Average       Balance   Average Balance   Average (Dollar amounts in thousands) (QTD) Interest Yield/Rate (QTD) Interest Yield/Rate ASSETS             Interest-earning assets             Interest-bearing balances due from banks $ 19,065 $ 235   4.90 % $ 13,189 $ 168   5.07 % Securities 1             U.S. Government securities   1,619,973   9,471   2.33 %   1,664,611   9,740   2.33 % State and municipal 2   86,481   557   2.56 %   87,799   560   2.54 % Other securities   3,287   55   6.66 %   3,282   60   7.27 % Total securities   1,709,741   10,083   2.35 %   1,755,692   10,360   2.35 % FHLBNY and FRB stock   30,665   894   11.60 %   38,534   888   9.17 % Total loans and leases, net of unearned income 2,3   5,931,771   79,126   5.31 %   5,830,899   78,040   5.32 % Total interest-earning assets   7,691,242   90,338   4.67 %   7,638,314   89,456   4.66 % Other assets   282,490       276,610     Total assets $ 7,973,732     $ 7,914,924     LIABILITIES & EQUITY             Deposits             Interest-bearing deposits             Interest bearing checking, savings, & money market $ 3,661,006 $ 17,223   1.87 % $ 3,509,116 $ 16,635   1.89 % Time deposits   1,076,300   10,331   3.82 %   1,016,949   10,076   3.94 % Total interest-bearing deposits   4,737,306   27,554   2.31 %   4,526,065   26,711   2.35 % Federal funds purchased & securities sold under agreements to repurchase   39,519   11   0.11 %   42,449   11   0.10 % Other borrowings   534,219   6,176   4.60 %   709,474   9,214   5.17 % Total interest-bearing liabilities   5,311,044   33,741   2.53 %   5,277,988   35,936   2.71 % Noninterest bearing deposits   1,844,772       1,838,725     Accrued expenses and other liabilities   101,370       101,679     Total liabilities   7,257,186       7,218,392     Tompkins Financial Corporation Shareholders’ equity   715,299       695,057     Noncontrolling interest   1,247       1,475     Total equity   716,546       696,532                   Total liabilities and equity $ 7,973,732     $ 7,914,924     Interest rate spread     2.15 %     1.95 % Net interest income (TE)/margin on earning assets     56,597   2.93 %     53,520   2.79 %               Tax Equivalent Adjustment     (316 )       (327 )   Net interest income   $ 56,281       $ 53,193     Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)   Quarter Ended Quarter Ended   December 31, 2024 December 31, 2023   Average     Average       Balance   Average Balance   Average (Dollar amounts in thousands) (QTD) Interest Yield/Rate (QTD) Interest Yield/Rate ASSETS             Interest-earning assets             Interest-bearing balances due from banks $ 19,065 $ 235   4.90 % $ 14,351 $ 227   6.28 % Securities 1             U.S. Government securities   1,619,973   9,471   2.33 %   1,789,043   10,411   2.31 % State and municipal 2   86,481   557   2.56 %   90,070   574   2.53 % Other securities   3,287   55   6.66 %   3,242   60   7.37 % Total securities   1,709,741   10,083   2.35 %   1,882,355   11,045   2.33 % FHLBNY and FRB stock   30,665   894   11.60 %   24,555   584   9.44 % Total loans and leases, net of unearned income 2,3   5,931,771   79,126   5.31 %   5,486,715   69,197   5.00 % Total interest-earning assets   7,691,242   90,338   4.67 %   7,407,976   81,053   4.34 % Other assets   282,490       259,006     Total assets $ 7,973,732     $ 7,666,982     LIABILITIES & EQUITY             Deposits             Interest-bearing deposits             Interest bearing checking, savings, & money market $ 3,661,006 $ 17,223   1.87 % $ 3,643,919 $ 14,915   1.62 % Time deposits   1,076,300   10,331   3.82 %   925,790   8,560   3.67 % Total interest-bearing deposits   4,737,306   27,554   2.31 %   4,569,709   23,475   2.04 % Federal funds purchased & securities sold under agreements to repurchase   39,519   11   0.11 %   51,903   14   0.10 % Other borrowings   534,219   6,176   4.60 %   398,932   4,937   4.91 % Total interest-bearing liabilities   5,311,044   33,741   2.53 %   5,020,544   28,426   2.25 % Noninterest bearing deposits   1,844,772       1,920,510     Accrued expenses and other liabilities   101,370       103,648     Total liabilities   7,257,186       7,044,702     Tompkins Financial Corporation Shareholders’ equity   715,299       620,789     Noncontrolling interest   1,247       1,491     Total equity   716,546       622,280                   Total liabilities and equity $ 7,973,732     $ 7,666,982     Interest rate spread     2.15 %     2.09 % Net interest income (TE)/margin on earning assets     56,597   2.93 %     52,627   2.82 %               Tax Equivalent Adjustment     (316 )       (268 )   Net interest income   $ 56,281       $ 52,359     Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)   Year to Date Period Ended Year to Date Period Ended   December 31, 2024 December 31, 2023   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 $ 14,052 $ 741   5.27 % $ 13,064 $ 674   5.16 % Securities 1             U.S. Government securities   1,689,411   39,580   2.34 %   1,920,678   32,432   1.69 % State and municipal 2   88,414   2,254   2.55 %   91,407   2,338   2.56 % Other securities   3,277   235   7.17 %   3,272   229   6.99 % Total securities   1,781,102   42,069   2.36 %   2,015,357   35,000   1.74 % FHLBNY and FRB stock   35,369   3,203   9.06 %   22,284   1,697   7.63 % Total loans and leases, net of unearned income 2,3   5,768,575   302,780   5.25 %   5,357,699   261,144   4.87 % Total interest-earning assets   7,599,098   348,793   4.59 %   7,408,404   298,515   4.03 % Other assets   276,241       233,268     Total assets $ 7,875,339     $ 7,641,672     LIABILITIES & EQUITY             Deposits             Interest-bearing deposits             Interest bearing checking, savings, & money market $ 3,553,942 $ 64,647   1.82 % $ 3,697,780 $ 46,820   1.27 % Time deposits   1,017,532   39,336   3.87 %   793,709   23,988   3.02 % Total interest-bearing deposits   4,571,474   103,983   2.27 %   4,491,489   70,808   1.58 % Federal funds purchased & securities sold under agreements to repurchase   42,752   46   0.11 %   55,773   58   0.10 % Other borrowings   638,721   32,443   5.08 %   363,530   16,978   4.67 % Total interest-bearing liabilities   5,252,947   136,472   2.60 %   4,910,792   87,844   1.79 % Noninterest bearing deposits   1,838,036       1,994,861     Accrued expenses and other liabilities   98,542       101,287     Total liabilities   7,189,525       7,006,940     Tompkins Financial Corporation Shareholders’ equity   684,417       633,267     Noncontrolling interest   1,397       1,465     Total equity   685,814       634,732                   Total liabilities and equity $ 7,875,339     $ 7,641,672     Interest rate spread     1.99 %     2.24 % Net interest income (TE)/margin on earning assets     212,321   2.79 %     210,671   2.84 %               Tax Equivalent Adjustment     (1,219 )       (1,157 )   Net interest income   $ 211,102       $ 209,514     Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data)               Quarter-Ended Year-Ended Period End Balance Sheet Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Securities $ 1,544,762 $ 1,622,526 $ 1,630,654 $ 1,679,542 $ 1,729,838 $ 1,544,762 Total Loans   6,019,922   5,881,261   5,761,864   5,640,524   5,605,935   6,019,922 Allowance for credit losses   56,496   55,384   53,059   51,704   51,584   56,496 Total assets   8,109,080   8,006,427   7,869,522   7,778,034   7,819,749   8,109,080 Total deposits   6,471,805   6,577,896   6,285,896   6,449,616   6,399,847   6,471,805 Federal funds purchased and securities sold under agreements to repurchase   37,036   67,506   35,989   43,681   50,996   37,036 Other borrowings   790,247   539,327   773,627   522,600   602,100   790,247 Total common equity   713,444   719,855   674,630   667,906   668,522   713,444 Total equity   713,444   721,348   676,093   669,338   669,934   713,444 Average Balance Sheet             Average earning assets $ 7,691,242 $ 7,638,314 $ 7,547,689 $ 7,517,705 $ 7,407,976 $ 7,599,098 Average assets   7,973,732   7,914,924   7,810,061   7,801,125   7,666,982   7,875,339 Average interest-bearing liabilities   5,311,044   5,277,988   5,215,003   5,206,836   5,020,544   5,252,947 Average equity   716,546   696,532   662,969   666,752   622,280   685,814 Share data             Weighted average shares outstanding (basic)   14,230,297   14,215,607   14,214,574   14,211,910   14,194,503   14,218,106 Weighted average shares outstanding (diluted)   14,312,497   14,283,255   14,239,626   14,238,357   14,246,024   14,268,443 Period-end shares outstanding   14,436,363   14,394,255   14,395,204   14,405,019   14,405,920   14,436,363 Common equity book value per share $ 49.42 $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 49.42 Tangible book value per share (Non-GAAP)** $ 42.93 $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 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 $ 56,281 $ 53,193 $ 50,953 $ 50,675 $ 52,359 $ 211,102 Provision for credit loss expense   1,411   2,174   2,172   854   1,761   6,611 Noninterest income   20,829   23,385   21,776   22,137   18,850   88,127 Noninterest expense   49,966   49,877   49,942   49,857   51,300   199,642 Income tax expense   6,045   5,858   4,902   5,198   3,114   22,003 Net income attributable to Tompkins Financial Corporation   19,658   18,638   15,682   16,872   15,003   70,850 Noncontrolling interests   30   31   31   31   31   123 Basic earnings per share 4   1.38   1.31   1.10   1.19   1.06   4.98 Diluted earnings per share 4   1.37   1.30   1.10   1.18   1.05   4.97 Nonperforming Assets             Nonaccrual loans and leases $ 50,548 $ 62,381 $ 62,253 $ 62,544 $ 62,165 $ 50,548 Loans and leases 90 days past due and accruing   323   193   215   151   101   323 Total nonperforming loans and leases   50,871   62,574   62,468   62,695   62,266   50,871 OREO   14,314   81   80   0   131   14,314 Total nonperforming assets $ 65,185 $ 62,655 $ 62,548 $ 62,695 $ 62,397 $ 65,185 Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued   Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Loans and leases 30-89 days past due and             accruing $ 28,828 $ 7,031 $ 5,286 $ 8,015 $ 4,210 $ 28,828 Loans and leases 90 days past due and accruing   323   193   215   151   101   323 Total loans and leases past due and accruing   29,151   7,224   5,501   8,166   4,311   29,151 Allowance for Credit Losses Balance at beginning of period $ 55,384   $ 53,059   $ 51,704 $ 51,584 $ 49,336   $ 51,584   Provision for credit losses   1,969     3,237     1,864   348   2,658   $ 7,418   Net loan and lease charge-offs (recoveries)   857     912     509   228   410   $ 2,506   Allowance for credit losses at end of period $ 56,496   $ 55,384   $ 53,059 $ 51,704 $ 51,584   $ 56,496                 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 2,021   $ 3,084   $ 2,776 $ 2,270 $ 3,167   $ 2,270   (Credit) provision for credit losses   (558 )   (1,063 )   308   506   (897 ) $ (807 ) Allowance for credit losses at end of period $ 1,463   $ 2,021   $ 3,084 $ 2,776 $ 2,270   $ 1,463   Loan Classification - Total Portfolio             Special Mention $ 36,923 $ 58,758 $ 48,712 $ 46,302 $ 50,368 $ 36,923 Substandard   74,163   67,261   67,509   72,412   72,717   74,163 Ratio Analysis Credit Quality             Nonperforming loans and leases/total loans and leases 0.85 % 1.06 % 1.08 % 1.11 % 1.11 % 0.85 % Nonperforming assets/total assets 0.80 % 0.78 % 0.79 % 0.81 % 0.80 % 0.80 % Allowance for credit losses/total loans and leases 0.94 % 0.94 % 0.92 % 0.92 % 0.92 % 0.94 % Allowance/nonperforming loans and leases 111.06 % 88.51 % 84.94 % 82.47 % 82.84 % 111.06 % Net loan and lease losses (recoveries) annualized/total average loans and leases 0.06 % 0.06 % 0.04 % 0.02 % 0.03 % 0.04 % Capital Adequacy             Tier 1 Capital (to average assets) 9.27 % 9.19 % 9.15 % 9.08 % 9.08 % 9.27 % Total Capital (to risk-weighted assets) 13.08 % 13.21 % 13.26 % 13.43 % 13.36 % 13.08 % Profitability (period-end)             Return on average assets * 0.98 % 0.94 % 0.81 % 0.87 % 0.78 % 0.90 % Return on average equity * 10.91 % 10.65 % 9.51 % 10.18 % 9.56 % 10.33 % Net interest margin (TE) * 2.93 % 2.79 % 2.73 % 2.73 % 2.82 % 2.79 % Average yield on interest-earning assets* 4.67 % 4.66 % 4.56 % 4.47 % 4.34 % 4.59 % Average cost of deposits* 1.67 % 1.67 % 1.61 % 1.54 % 1.43 % 1.62 % Average cost of funds* 1.88 % 2.01 % 1.96 % 1.86 % 1.62 % 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 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-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Common equity book value per share (GAAP) $ 49.42 $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 49.42 Total common equity $ 713,444 $ 719,855 $ 674,630 $ 667,906 $ 668,522 $ 713,444 Less: Goodwill and intangibles   93,670   93,760   93,847   93,926   94,003   93,670 Tangible common equity (Non-GAAP)   619,774   626,095   580,783   573,980   574,519   619,774 Ending shares outstanding   14,436,363   14,394,255   14,395,204   14,405,019   14,405,920   14,436,363 Tangible book value per share (Non-GAAP) $ 42.93 $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 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 2024 and 2023 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, 2023. 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/20250131969196/en/

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