Tompkins Financial Corporation Reports Record Financial Results for Third Consecutive Quarter

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 $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 % Securities 1                   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 municipal 2   79,748   526   2.65 %   81,218   536   2.68 %   85,080   554   2.61 % Other Securities 2   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 % Securities 1             U.S. Government securities   1,643,856   29,075   3.57 %   1,604,469   19,467   2.45 % State and municipal 2   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 share 4   2.06   1.83   6.74   1.66   1.51   11.30 Diluted earnings per share 4   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/

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