Tompkins Financial : Reports Third Quarter Financial Results Form 8 K

About this update from Tompkins Financial Corporation

Tompkins Financial Corporation Reports Third Quarter Financial Results ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.30 for the third quarter of 2024, up 18.2% from the immediate prior quarter, and up 155.3% from the diluted earnings (loss) per share of $(2.35) reported in the third quarter of 2023. Net income for the third quarter of 2024 was $18.6 million, up $3.0 million or 18.9% compared to the second quarter of 2024, and up $52.0 million, or 155.9%, when compared to the net loss of $(33.4) million reported for the third quarter of 2023. The increase in diluted earnings per share and net income compared to the results for the third quarter of 2023 largely reflects the Company's sale of $429.6 million of available-for-sale securities, which resulted in a pre-tax loss of $62.9 million (or $3.34 per share) in the third quarter of 2023. For the nine months ended September 30, 2024, diluted earnings (loss) per share were $3.59, up from $(0.39) for the nine months ended September 30, 2023. Year-to-date net income (loss) was $51.2 million for the nine months ended September 30, 2024, up $56.7 million when compared to $(5.5) million for the prior year period. The growth in year-to-date diluted earnings per share and net income was mainly due the Company's sale of $510.5 million of available-for-sale securities which resulted in a pre-tax loss of $70.0 million (or $3.69 per share) for the nine months ended September 30, 2023. Tompkins President and CEO, Stephen Romaine, commented, "Our third quarter net income was up over 18% as compared to the second quarter, driven by a strengthening net interest margin and growth across our business. For the third quarter our net interest margin expanded 6 basis points, loan balances grew over 8% annualized and our fee-based services continue to provide diversified growing revenue as total noninterest income represented 31% of total revenue. Year-to-date, our operating results were further supported by lower expenses, as noninterest expenses were down 1.5% as compared to prior year. As we are seeing improving profitability we believe that we remain well positioned to continue to drive growth through quality customer relationships supported by our strong capital and liquidity." SELECTED HIGHLIGHTS FOR THE PERIOD: •Net interest margin for the third quarter of 2024 was 2.79%, improved from the immediate prior quarter of 2.73%, and the 2.75% reported for the same period of 2023. •Total average cost of funds for the third quarter of 2024 was up 5 basis points compared to the second quarter of 2024, down from a 10 basis point increase from the first quarter of 2024 to the second quarter of 2024. •Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the third quarter of 2024 were up $648,000 or 3.2% compared to the third quarter of 2023. •Total noninterest expenses for the third quarter of 2024 were in line with the second quarter of 2024 and the third quarter of 2023. •Total loans at September 30, 2024 were up $119.4 million, or 2.1% (8.2% on an annualized basis) compared to June 30, 2024, and up $446.4 million, or 8.2%, from September 30, 2023. •Total deposits at September 30, 2024 were $6.6 billion, up $292.0 million, or 4.7%, from June 30, 2024, and down $45.5 million, or 0.7%, from September 30, 2023. •Loan to deposit ratio at September 30, 2024 was 89.4%, compared to 91.7% at June 30, 2024, and 82.1% at September 30, 2023. •Regulatory Tier 1 capital to average assets was 9.19% at September 30, 2024, up compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023. NET INTEREST INCOME Net interest income was $53.2 million for the third quarter of 2024, up $2.2 million or 4.4% compared to the second quarter of 2024, and $2.2 million or 4.3% compared to the third quarter of 2023. The increase in net interest income compared to both the second quarter of 2024, and third quarter of 2023, resulted primarily from the increase in average loan balances and the average yield on those loan balances, partially offset by the increase in cost of deposits. For the nine months ended September 30, 2024, net interest income was $154.8 million, down $2.3 million or 1.5% when compared to the same period in 2023. Net interest margin was 2.79% for the third quarter of 2024, up 6 basis points when compared to the immediate prior quarter, and up 4 basis points from the 2.75% reported for the third quarter of 2023. The increase in net interest margin, when compared to the prior periods, was mainly driven by higher yields on interest earning assets and higher average loan balances, and was partially offset by higher funding costs. Average loans for the quarter ended September 30, 2024 were up $143.4 million, or 2.5%, from the second quarter of 2024, and were up $445.7 million, or 8.3%, compared to the same period prior year. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended September 30, 2024 was 4.66%, which was up from 4.56% for the quarter ended June 30, 2024, and up from 4.06% for the quarter ended September 30, 2023. Average total deposits of $6.4 billion for the third quarter of 2024 were up $41.4 million, or 0.7%, compared to the second quarter of 2024, and down $67.0 million or 1.0% compared to the same period in 2023. The cost of interest-bearing deposits of 2.35% for the third quarter of 2024 was up 8 basis points from 2.27% for the second quarter of 2024, and up 61 basis points from 1.74% for the third quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2024 was 28.9% compared to 29.1% for the second quarter of 2024, and 31.0% for the third quarter of 2023. The average cost of interest-bearing liabilities for the third quarter of 2024 of 2.71% represents an increase of 7 basis points over the second quarter of 2024, and an increase of 73 basis points over the same period in 2023. NONINTEREST INCOME Noninterest income of $23.4 million for the third quarter of 2024 was up $65.0 million or 156.2% compared to the same period in 2023. Year-to-date noninterest income of $67.3 million was up $75.9 million or 881.7% compared to the same period in 2023. The increase in quarterly and year-to-date noninterest income compared to the same periods in 2023 was mainly due to the $62.9 million and $70.0 million, respectively, pre-tax loss on the sale of available-for-sale securities in 2023 as discussed above. Other income was up $1.3 million for the quarter ended September 30, 2024 compared to the same period in 2023, and included increases in gains on loan sales, derivative swap fee income, and BOLI income. Also included in the increase for the third quarter of 2024 over the same period prior year were fee-based revenues which included wealth management fees, up $583,000, service charges on deposit accounts, up $118,000, card services income, up $61,000. NONINTEREST EXPENSE Noninterest expense was $49.9 million for the third quarter of 2024, which was in line with the third quarter of 2023. Year-to-date noninterest expense for the period ended September 30, 2024 was $149.7 million, a decrease of $2.3 million or 1.5% compared to the $152.0 million reported for the same period in 2023. The year-over-year decrease was mainly driven by lower other expenses (legal fees, marketing, professional fees, retirement plan expense, and travel and meeting expense), partially offset by higher FDIC insurance expense. INCOME TAX EXPENSE The provision for income tax expense was $5.9 million for an effective rate of 23.9% for the third quarter of 2024, compared to tax benefit of $8.3 million and an effective rate of 20.0% for the same quarter in 2023. For the nine months ended September 30, 2024, the provision for income tax expense was $16.0 million and the effective tax rate was 23.7% compared to a tax benefit of $619,000 and an effective tax rate of 10.3% for the same period in 2023. Lower tax expense for both the quarter and year-to-date periods in 2023 was mainly a result of lower income associated with the loss on the sale of securities described above. ASSET QUALITY The allowance for credit losses represented 0.94% of total loans and leases at September 30, 2024, up from 0.92% reported at both June 30, 2024 and December 31, 2023. The increase in the allowance for credit losses coverage ratio was driven primarily by updated economic forecasts for unemployment and gross domestic product for the quarter, as well as model assumption updates for prepayment speeds, curtailment rates, and recovery lag. 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 88.51% at September 30, 2024, compared to 84.94% at June 30, 2024, and 156.96% at September 30, 2023. The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below. Provision for credit losses for the third quarter of 2024 was $2.2 million compared to $1.2 million for the same period in 2023. Provision for credit losses for the nine months ended September 30, 2024 was $5.2 million compared to $2.6 million for the nine months ended September 30, 2023. The increase in provision expense for the quarter and year-to-date periods compared to the same periods in 2023 was mainly driven by loan growth which was up $119.4 million or 2.1%, and $446.4 million or 8.2%, respectively, and the increase in net charge-offs in 2024 over 2023. Net charge-offs for three and nine months ended September 30, 2024 were $912,000 and $1.6 million, respectively, compared to net charge-offs of $177,000 and net recoveries of $1.1 million for the same periods in 2023. Nonperforming assets represented 0.78% of total assets at September 30, 2024, down slightly from 0.79% reported at June 30, 2024, and up compared to 0.41% at September 30, 2023. At September 30, 2024, nonperforming loans and leases totaled $62.6 million, compared to $62.5 million at June 30, 2024 and $31.4 million at September 30, 2023. The increase in nonperforming loans and leases at September 30, 2024 compared to September 30, 2023 was mainly due to the addition in the fourth quarter of 2023 of one relationship totaling approximately $33.3 million with two commercial real estate properties included in the office space and mixed use properties portion of the commercial real estate portfolio. The Company believes that the existing collateral securing the loans was sufficient to cover the exposure as of September 30, 2024. Special Mention and Substandard loans and leases totaled $126.0 million at September 30, 2024, compared to $116.2 million reported at June 30, 2024, and $122.9 million reported at September 30, 2023. CAPITAL POSITION Capital ratios at September 30, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.21% at September 30, 2024, compared to 13.26% at June 30, 2024, and 13.46% at September 30, 2023. The ratio of Tier 1 capital to average assets was 9.19% at September 30, 2024, compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023. LIQUIDITY POSITION The Company's liquidity position at September 30, 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 $1.4 billion, or 18.0% of total assets at September 30, 2024. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At September 30, 2024 the Company had an available borrowing capacity at the FHLB of $769.5 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At September 30, 2024 the available borrowing capacity with the Federal Reserve Bank was $142.0 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at September 30, 2024, the Company maintained $508.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity. 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: 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; 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 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 9/30/2024 12/31/2023 (Audited) Cash and noninterest bearing balances due from banks $ 110,375 $ 67,212 Interest bearing balances due from banks 21,945 12,330 Cash and Cash Equivalents 132,320 79,542 Available-for-sale debt securities, at fair value (amortized cost of $1,410,405 at September 30, 2024 and $1,548,482 at December 31, 2023) 1,309,279 1,416,650 Held-to-maturity debt securities, at amortized cost (fair value of $276,599 at September 30, 2024 and $267,455 at December 31, 2023) 312,446 312,401 Equity securities, at fair value 801 787 Total loans and leases, net of unearned income and deferred costs and fees 5,881,261 5,605,935 Less: Allowance for credit losses 55,384 51,584 Net Loans and Leases 5,825,877 5,554,351 Federal Home Loan Bank and other stock 30,936 33,719 Bank premises and equipment, net 77,603 79,687 Corporate owned life insurance 75,966 67,884 Goodwill 92,602 92,602 Other intangible assets, net 2,238 2,327 Accrued interest and other assets 146,359 179,799 Total Assets $ 8,006,427 $ 7,819,749 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,655,041 3,484,878 Time 1,042,007 998,013 Noninterest bearing 1,880,848 1,916,956 Total Deposits 6,577,896 6,399,847 Federal funds purchased and securities sold under agreements to repurchase 67,506 50,996 Other borrowings 539,327 602,100 Other liabilities 100,350 96,872 Total Liabilities $ 7,285,079 $ 7,149,815 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,426,922 at September 30, 2024; and 14,441,830 at December 31, 2023 1,443 1,444 Additional paid-in capital 299,741 297,183 Retained earnings 526,423 501,510 Accumulated other comprehensive loss (101,200) (125,005) Treasury stock, at cost - 129,317 shares at September 30, 2024, and 132,097 shares at December 31, 2023 (6,552) (6,610) Total Tompkins Financial Corporation Shareholders' Equity 719,855 668,522 Noncontrolling interests 1,493 1,412 Total Equity $ 721,348 $ 669,934 Total Liabilities and Equity $ 8,006,427 $ 7,819,749 TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended 9/30/2024 06/30/2024 9/30/2023 9/30/2024 9/30/2023 INTEREST AND DIVIDEND INCOME Loans $ 77,814 $ 73,646 $ 67,030 $ 223,059 $ 191,399 Due from banks 168 184 125 506 447 Available-for-sale debt securities 9,037 9,371 6,599 28,019 19,960 Held-to-maturity debt securities 1,222 1,219 1,221 3,659 3,654 Federal Home Loan Bank and other stock 888 820 490 2,309 1,113 Total Interest and Dividend Income 89,129 $ 85,240 $ 75,465 $ 257,552 $ 216,573 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 4,158 4,048 3,158 12,216 7,472 Other deposits 22,553 21,236 16,348 64,213 39,861 Federal funds purchased and securities sold under agreements to repurchase 11 11 15 35 44 Other borrowings 9,214 8,992 4,931 26,267 12,041 Total Interest Expense 35,936 34,287 24,452 102,731 59,418 Net Interest Income 53,193 50,953 51,013 154,821 157,155 Less: Provision for credit loss expense 2,174 2,172 1,150 5,200 2,578 Net Interest Income After Provision for Credit Loss Expense 51,019 48,781 49,863 149,621 154,577 NONINTEREST INCOME Insurance commissions and fees 11,283 9,087 11,397 30,629 29,578 Wealth management fees 4,925 4,849 4,342 14,711 13,529 Service charges on deposit accounts 1,872 1,766 1,754 5,434 5,140 Card services income 2,921 3,278 2,860 9,138 8,629 Other income 2,299 2,802 990 7,321 4,534 Net gain (loss) on securities transactions 85 (6) (62,967) 65 (70,019) Total Noninterest Income 23,385 21,776 (41,624) 67,298 (8,609) NONINTEREST EXPENSE Salaries and wages 25,664 24,919 23,811 75,280 73,660 Other employee benefits 6,276 6,545 7,319 19,232 20,707 Net occupancy expense of premises 3,065 3,139 3,108 9,761 9,734 Furniture and fixture expense 1,797 1,910 2,079 5,832 6,238 Amortization of intangible assets 86 80 83 242 250 Other operating expense 12,989 13,349 13,466 39,329 41,403 Total Noninterest Expenses 49,877 49,942 49,866 149,676 151,992 Income/(Loss) Before Income Tax Expense/(Benefit) 24,527 20,615 (41,627) 67,243 (6,024) Income Tax Expense/(Benefit) 5,858 4,902 (8,304) 15,958 (619) Net Income/(Loss) Attributable to Noncontrolling Interests and Tompkins Financial Corporation 18,669 15,713 (33,323) 51,285 (5,405) Less: Net Income Attributable to Noncontrolling Interests 31 31 31 93 93 Net Income/(Loss) Attributable to Tompkins Financial Corporation $ 18,638 15,682 (33,354) 51,192 (5,498) Basic Earnings (Loss) Per Share $ 1.31 $ 1.10 $ (2.35) $ 3.60 $ (0.39) Diluted Earnings (Loss) Per Share $ 1.30 $ 1.10 $ (2.35) $ 3.59 $ (0.39) Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended September 30, 2024 June 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 $ 13,189 $ 168 5.07 % $ 11,707 $ 184 6.33 % Securities (1) U.S. Government securities 1,664,611 9,740 2.33 % 1,717,975 10,067 2.36 % State and municipal (2) 87,799 560 2.54 % 89,518 566 2.55 % Other securities 3,282 60 7.27 % 3,260 59 7.32 % Total securities 1,755,692 10,360 2.35 % 1,810,753 10,692 2.38 % FHLBNY and FRB stock 38,534 888 9.17 % 37,681 820 8.76 % Total loans and leases, net of unearned income (2)(3) 5,830,899 78,040 5.32 % 5,687,548 73,839 5.22 % Total interest-earning assets 7,638,314 89,456 4.66 % 7,547,689 85,535 4.56 % Other assets 276,610 262,372 Total assets $ 7,914,924 $ 7,810,061 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,509,116 $ 16,635 1.89 % $ 3,498,746 $ 15,754 1.81 % Time deposits 1,016,949 10,076 3.94 % 987,348 9,530 3.88 % Total interest-bearing deposits 4,526,065 26,711 2.35 % 4,486,094 25,284 2.27 % Federal funds purchased & securities sold under agreements to repurchase 42,449 11 0.10 % 40,298 11 0.11 % Other borrowings 709,474 9,214 5.17 % 688,611 8,992 5.25 % Total interest-bearing liabilities 5,277,988 35,936 2.71 % 5,215,003 34,287 2.64 % Noninterest bearing deposits 1,838,725 1,837,325 Accrued expenses and other liabilities 101,679 94,764 Total liabilities 7,218,392 7,147,092 Tompkins Financial Corporation Shareholders' equity 695,057 661,523 Noncontrolling interest 1,475 1,446 Total equity 696,532 662,969 Total liabilities and equity $ 7,914,924 $ 7,810,061 Interest rate spread 1.95 % 1.91 % Net interest income (TE)/margin on earning assets 53,520 2.79 % 51,248 2.73 % Tax Equivalent Adjustment (327) (295) Net interest income $ 53,193 $ 50,953 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended September 30, 2024 September 30, 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 $ 13,189 $ 168 5.07 % $ 11,585 $ 125 4.29 % Securities (1) U.S. Government securities 1,664,611 9,740 2.33 % 1,890,659 7,294 1.53 % State and municipal (2) 87,799 560 2.54 % 90,212 576 2.53 % Other securities 3,282 60 7.27 % 3,272 59 7.18 % Total securities 1,755,692 10,360 2.35 % 1,984,143 7,929 1.59 % FHLBNY and FRB stock 38,534 888 9.17 % 24,511 490 7.94 % Total loans and leases, net of unearned income (2)(3) 5,830,899 78,040 5.32 % 5,385,195 67,199 4.95 % Total interest-earning assets 7,638,314 89,456 4.66 % 7,405,434 75,743 4.06 % Other assets 276,610 224,442 Total assets $ 7,914,924 $ 7,629,876 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,509,116 $ 16,635 1.89 % $ 3,615,395 $ 12,674 1.39 % Time deposits 1,016,949 10,076 3.94 % 826,082 6,832 3.28 % Total interest-bearing deposits 4,526,065 26,711 2.35 % 4,441,477 19,506 1.74 % Federal funds purchased & securities sold under agreements to repurchase 42,449 11 0.10 % 57,624 15 0.10 % Other borrowings 709,474 9,214 5.17 % 403,829 4,931 4.84 % Total interest-bearing liabilities 5,277,988 35,936 2.71 % 4,902,930 24,452 1.98 % Noninterest bearing deposits 1,838,725 1,990,320 Accrued expenses and other liabilities 101,679 101,646 Total liabilities 7,218,392 6,994,896 Tompkins Financial Corporation Shareholders' equity 695,057 633,494 Noncontrolling interest 1,475 1,487 Total equity 696,532 634,980 Total liabilities and equity $ 7,914,924 $ 7,629,876 Interest rate spread 1.95 % 2.08 % Net interest income (TE)/margin on earning assets 53,520 2.79 % 51,291 2.75 % Tax Equivalent Adjustment (327) (278) Net interest income $ 53,193 $ 51,013 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Year to Date Period Ended Year to Date Period Ended September 30, 2024 September 30, 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 $ 12,369 $ 506 5.46 % $ 12,630 $ 447 4.73 % Securities (1) U.S. Government securities 1,712,727 30,109 2.35 % 1,965,039 22,022 1.50 % State and municipal (2) 89,063 1,697 2.55 % 91,858 1,764 2.57 % Other securities 3,273 179 7.31 % 3,281 169 6.87 % Total securities 1,805,063 31,985 2.37 % 2,060,178 23,955 1.55 % FHLBNY and FRB stock 36,948 2,309 8.35 % 21,519 1,113 6.93 % Total loans and leases, net of unearned income (2)(3) 5,713,780 223,656 5.23 % 5,314,221 191,946 4.83 % Total interest-earning assets 7,568,160 258,456 4.56 % 7,408,548 217,461 3.92 % Other assets 274,143 224,594 Total assets $ 7,842,303 $ 7,633,142 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,517,993 $ 47,424 1.80 % $ 3,715,931 $ 31,905 1.15 % Time deposits 997,800 29,005 3.88 % 749,198 15,428 2.75 % Total interest-bearing deposits 4,515,793 76,429 2.26 % 4,465,129 47,333 1.42 % Federal funds purchased & securities sold under agreements to repurchase 43,837 35 0.11 % 57,077 44 0.10 % Other borrowings 673,809 26,267 5.21 % 351,600 12,041 4.58 % Total interest-bearing liabilities 5,233,439 102,731 2.62 % 4,873,806 59,418 1.63 % Noninterest bearing deposits 1,835,776 2,019,917 Accrued expenses and other liabilities 97,593 100,491 Total liabilities 7,166,808 6,994,214 Tompkins Financial Corporation Shareholders' equity 674,048 637,472 Noncontrolling interest 1,447 1,456 Total equity 675,495 638,928 Total liabilities and equity $ 7,842,303 $ 7,633,142 Interest rate spread 1.94 % 2.29 % Net interest income (TE)/margin on earning assets 155,725 2.75 % 158,043 2.85 % Tax Equivalent Adjustment (904) (888) Net interest income $ 154,821 $ 157,155 Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet Sep-24 Jun-24 Mar-24 Dec-23 Sep-23 Dec-23 Securities $ 1,622,526 $ 1,630,654 $ 1,679,542 $ 1,729,838 $ 1,701,636 $ 1,729,838 Total Loans 5,881,261 5,761,864 5,640,524 5,605,935 5,434,860 5,605,935 Allowance for credit losses 55,384 53,059 51,704 51,584 49,336 51,584 Total assets 8,006,427 7,869,522 7,778,034 7,819,749 7,691,162 7,819,749 Total deposits 6,577,896 6,285,896 6,449,616 6,399,847 6,623,436 6,399,847 Federal funds purchased and securities sold under agreements to repurchase 67,506 35,989 43,681 50,996 56,120 50,996 Other borrowings 539,327 773,627 522,600 602,100 296,800 602,100 Total common equity 719,855 674,630 667,906 668,522 610,851 668,522 Total equity 721,348 676,093 669,338 669,934 612,356 669,934 Average Balance Sheet Average earning assets $ 7,638,314 $ 7,547,689 $ 7,517,705 $ 7,407,976 $ 7,405,434 $ 7,408,404 Average assets 7,914,924 7,810,061 7,801,125 7,666,982 7,629,876 7,641,672 Average interest-bearing liabilities 5,277,988 5,215,003 5,206,836 5,020,544 4,902,930 4,910,792 Average equity 696,532 662,969 666,752 622,280 634,980 634,732 Share data Weighted average shares outstanding (basic) 14,215,607 14,214,574 14,211,910 14,194,503 14,185,763 14,254,661 Weighted average shares outstanding (diluted) 14,283,255 14,239,626 14,238,357 14,246,024 14,224,748 14,301,221 Period-end shares outstanding 14,394,255 14,395,204 14,405,019 14,405,920 14,350,177 14,405,920 Common equity book value per share $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 42.57 $ 46.41 Tangible book value per share (Non-GAAP)** $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 36.01 $ 39.88 **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 $ 53,193 $ 50,953 $ 50,675 $ 52,359 $ 51,013 $ 209,514 Provision for credit loss expense (5) 2,174 2,172 854 1,761 1,150 4,339 Noninterest income 23,385 21,776 22,137 18,850 (41,624) 10,241 Noninterest expense (5) 49,877 49,942 49,857 51,300 49,866 203,292 Income tax expense/(benefit) 5,858 4,902 5,198 3,114 (8,304) 2,495 Net income/(loss) attributable to Tompkins Financial Corporation 18,638 15,682 16,872 15,003 (33,354) 9,505 Noncontrolling interests 31 31 31 31 31 124 Basic earnings (loss) per share (4) 1.31 1.10 1.19 1.06 (2.35) 0.66 Diluted earnings (loss) per share (4) 1.30 1.10 1.18 1.05 (2.35) 0.66 Nonperforming Assets Nonaccrual loans and leases $ 62,381 $ 62,253 $ 62,544 $ 62,165 $ 31,381 $ 62,165 Loans and leases 90 days past due and accruing 193 215 151 101 52 101 Total nonperforming loans and leases 62,574 62,468 62,695 62,266 31,433 62,266 OREO 81 80 0 131 0 131 Total nonperforming assets $ 62,655 $ 62,548 $ 62,695 $ 62,397 $ 31,433 $ 62,397 Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Sep-24 Jun-24 Mar-24 Dec-23 Sep-23 Dec-23 Loans and leases 30-89 days past due and accruing $ 7,031 $ 5,286 $ 8,015 $ 4,210 $ 40,893 $ 4,210 Loans and leases 90 days past due and accruing 193 215 151 101 52 101 Total loans and leases past due and accruing 7,224 5,501 8,166 4,311 40,945 4,311 Allowance for Credit Losses Balance at beginning of period $ 53,059 $ 51,704 $ 51,584 $ 49,336 $ 48,545 $ 45,934 Impact of adopting ASC 326 0 0 0 0 0 64 Provision for credit losses 3,237 1,864 348 2,658 968 $ 4,865 Net loan and lease charge-offs (recoveries) 912 509 228 410 177 $ (721) Allowance for credit losses at end of period $ 55,384 $ 53,059 $ 51,704 $ 51,584 $ 49,336 $ 51,584 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 3,084 $ 2,776 $ 2,270 $ 3,167 $ 2,985 $ 2,796 Provision (credit) for credit losses (1,063) 308 506 (897) 182 $ (526) Allowance for credit losses at end of period $ 2,021 $ 3,084 $ 2,776 $ 2,270 $ 3,167 $ 2,270 Loan Classification - Total Portfolio Special Mention $ 58,758 $ 48,712 $ 46,302 $ 50,368 $ 65,993 $ 50,368 Substandard 67,261 67,509 72,412 72,717 56,947 72,717 Ratio Analysis Credit Quality Nonperforming loans and leases/total loans and leases 1.06 % 1.08 % 1.11 % 1.11 % 0.58 % 1.11 % Nonperforming assets/total assets 0.78 % 0.79 % 0.81 % 0.80 % 0.41 % 0.80 % Allowance for credit losses/total loans and leases 0.94 % 0.92 % 0.92 % 0.92 % 0.91 % 0.92 % Allowance/nonperforming loans and leases 88.51 % 84.94 % 82.47 % 82.84 % 156.96 % 82.84 % Net loan and lease losses (recoveries) annualized/total average loans and leases 0.06 % 0.04 % 0.02 % 0.03 % 0.01 % (0.01) % Capital Adequacy Tier 1 Capital (to average assets) 9.19 % 9.15 % 9.08 % 9.08 % 9.01 % 9.08 % Total Capital (to risk-weighted assets) 13.21 % 13.26 % 13.43 % 13.36 % 13.46 % 13.36 % Profitability (period-end) Return on average assets * 0.94 % 0.81 % 0.87 % 0.78 % (1.73) % 0.12 % Return on average equity * 10.65 % 9.51 % 10.18 % 9.56 % (20.84) % 1.50 % Net interest margin (TE) * 2.79 % 2.73 % 2.73 % 2.82 % 2.75 % 2.84 % Average yield on interest-earning assets* 4.66 % 4.56 % 4.47 % 4.34 % 4.06 % 4.03 % Average cost of deposits* 1.67 % 1.61 % 1.54 % 1.43 % 1.20 % 1.09 % Average cost of funds* 2.01 % 1.96 % 1.86 % 1.62 % 1.41 % 1.27 % * 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 Sep-24 Jun-24 Mar-24 Dec-23 Sep-23 Dec-23 Common equity book value per share (GAAP) $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 42.57 $ 46.41 Total common equity $ 719,855 $ 674,630 $ 667,906 $ 668,522 $ 610,851 $ 668,522 Less: Goodwill and intangibles 93,760 93,847 93,926 94,003 94,086 94,003 Tangible common equity (Non-GAAP) 626,095 580,783 573,980 574,519 516,765 574,519 Ending shares outstanding 14,394,255 14,395,204 14,405,019 14,405,920 14,350,177 14,405,920 Tangible book value per share (Non-GAAP) $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 36.01 $ 39.88 (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. (5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.

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