Tompkins Financial Corporation Reports Financial Results for Third Quarter of 2026

ITHACA, N.Y.--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP)

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $2.00 for the third quarter of 2026, up $0.35 or 21.2%, from the third quarter of 2025 and down $0.04 per share or 2.0%, from the second quarter of 2026. Net income for the third quarter of 2026 was $28.7 million, an increase of $5.0 million, or 21.0%, from the third quarter of 2025 and down $650,000, or 2.2%, from the prior quarter.

For the nine months ended September 30, 2026, diluted earnings per share were $5.86, up $1.34 or 29.6%, from $4.52 for the same period in 2025. Net income for the year-to-date period totaled $84.0 million, up $19.2 million, or 29.6%, from $64.8 million for the nine months ended September 30, 2025.

Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report strong financial results for the third quarter. Our consistent levels of loan and deposit growth along with further expansion in net interest margin continue to provide momentum as we look forward. Given our strength in earnings and capital position we have approved another dividend increase, payable in the fourth quarter of 2026. This dividend represents a 13.8% increase compared to the dividend paid in the fourth quarter of 2025."

SELECTED HIGHLIGHTS FOR THE PERIOD:

• Net interest margin was 3.65% in the third quarter of 2026, up 7 basis points compared to the prior quarter, and up 45 basis points from the third quarter of 2025.
• Period end total loans at September 30, 2026 were up $127.8 million, or 1.9% compared to June 30, 2026 (7.8% on an annualized basis), and up $436.9 million, or 6.9%, from September 30, 2025.
• Period end total deposits at September 30, 2026 were $7.4 billion, up $379.9 million, or 5.4% compared to the most recent prior quarter end, and up $356.0 million, or 5.0%, from September 30, 2025.
• Total average cost of funds of 1.67% for the third quarter of 2026 was down 1 basis point from the second quarter of 2026, and down 16 basis points compared to the third quarter of 2025.
• Regulatory Tier 1 capital to average assets was 10.73% at September 30, 2026, up from 10.69% at June 30, 2026, and 9.41% at September 30, 2025.

NET INTEREST INCOME

Net interest income was $77.3 million for the third quarter of 2026, up $3.3 million or 4.5% compared to the second quarter of 2026, and up $13.4 million or 21.0% compared to the third quarter of 2025. For the nine months ended September 30, 2026, net interest income was $223.1 million, up $42.5 million or 23.5% 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 and growth in average loans.

Net interest margin was 3.65% for the third quarter of 2026, an increase of 7 basis points over the prior quarter, and an increase of 45 basis points compared to 3.20% for the third quarter of 2025. The increase in net interest margin, when compared to the most recent prior quarter, was primarily driven by higher yields on average interest-earning assets and growth in average loan balances. The year-over-year increase was primarily attributable to growth in average loan balances, improved yields on average interest-earning assets, and lower funding costs. The average yield on securities for the third quarter of 2026 increased 95 basis points over the third quarter of 2025, while the average yield on interest-earning assets increased 28 basis points over the same period.

Average loans for the quarter ended September 30, 2026 increased $119.1 million, or 1.8% (7.3% annualized), from the prior quarter and $428.0 million, or 6.9%, over the third quarter of 2025. The increase in average loans across both prior periods was primarily driven by growth in the commercial real estate and commercial and industrial portfolios. The average yield on total loans and leases was 5.60% for the third quarter of 2026, up 5 basis points from the prior quarter and up 8 basis points from the third quarter of 2025.

Average total deposits of $7.2 billion for the third quarter of 2026 increased $180.8 million, or 2.6%, over the second quarter of 2026 and $361.4 million, or 5.3%, over the third quarter of 2025. The cost of interest-bearing deposits of 2.10% for the third quarter of 2026 was up 3 basis points from the prior quarter and down 16 basis points compared to the third quarter of 2025. Average noninterest-bearing deposits totaled $2.0 billion, increasing $90.5 million, or 4.8%, over the second quarter of 2026, and $89.2 million or 4.7%, over the third quarter of 2025. The ratio of average noninterest-bearing deposits to average total deposits was 27.5% for the third quarter of 2026, up from 26.9% for the second quarter of 2026, and consistent with 27.7% for the third quarter of 2025. The average cost of interest-bearing liabilities was 2.24% for the third quarter of 2026, unchanged from the prior quarter, and down 21 basis points compared to the third quarter of 2025.

NONINTEREST INCOME

Noninterest income totaled $12.6 million for the third quarter of 2026, down $11.0 million, or 46.7%, from the third quarter of 2025. The decrease was primarily attributable to an $11.3 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 $337,000 or 6.8%, service charges on deposit accounts of $164,000 or 8.9%, and card service income of $74,000 or 2.6%.

Year-to-date noninterest income of $37.5 million was down $33.6 million, or 47.2%, from the same period in 2025. Contributing to the year-over-year decrease was a $32.5 million decline in insurance revenue due to the sale of TIA, as well as a $2.2 million, or 23.2%, decrease in other income, primarily reflecting a gain on the sale of other real estate owned recognized in the second quarter of 2025. Partially offsetting these declines were increases in fee-based service income, including increases in wealth management fees of $749,000 or 5.0%, service charges on deposit accounts of $180,000 or 3.3%, and card service income of $236,000 or 2.7%.

NONINTEREST EXPENSE

Noninterest expense totaled $49.1 million for the third quarter of 2026, down $4.8 million, or 8.8%, from the third quarter of 2025. For the nine months ended September 30, 2026, noninterest expense totaled $143.9 million, down $12.2 million, or 7.8%, 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 third quarter and year-to-date periods in 2025 included TIA-related salaries and wages and other employee benefits expenses of $6.1 million and $18.2 million, respectively, as well as other noninterest expenses of $1.4 million and $4.3 million, respectively. As a result, salaries and wages and other employee benefits decreased $3.8 million, or 11.3%, and $11.8 million, or 11.9%, respectively, for the three and nine months ended September 30, 2026, respectively, compared to the same periods in the prior year. These decreases were partially offset by annual merit increases and higher other employee benefit costs, including health insurance, as well as increases in technology expense.

INCOME TAX EXPENSE

Provision for income tax expense was $9.1 million, for an effective rate of 24.1%, for the third quarter of 2026, compared to $9.2 million, for an effective rate of 24.0%, for the most recent prior quarter, and $7.4 million, for an effective rate of 23.9% for the third quarter of 2025.

For the nine months ended September 30, 2026, provision for income tax expense was $26.7 million, for an effective tax rate of 24.1%, compared to $20.3 million for an effective tax rate of 23.9%, for the same period in 2025.

ASSET QUALITY

The allowance for credit losses was 0.90% of total loans and leases at September 30, 2026, up from 0.89% at June 30, 2026, and down from 0.95% at September 30, 2025. The decrease in the allowance for credit losses coverage ratio compared to September 30, 2025 was mainly due to improved economic forecasts for unemployment and gross domestic product and lower qualitative reserves related to asset quality. These were partially offset by additional specific reserves on individually analyzed nonaccrual commercial credits. The ratio of the allowance to total nonperforming loans and leases was 113.12% at September 30, 2026, compared to 111.29% at June 30, 2026, and 113.06% at September 30, 2025.

Provision for credit losses for the third quarter of 2026 was $3.0 million, up from $1.5 million for the most recent prior quarter, and up from $2.5 million for the third quarter of 2025. The increase in the provision expense compared to the most recent prior quarter was mainly driven by loan growth and specific reserves for individually evaluated loans, partially offset by updated economic forecasts. Net charge-offs for the three months ended September 30, 2026 were $1.2 million, compared to $1.6 million for the second quarter of 2026, and $1.1 million for the third quarter of 2025.

Nonperforming assets of $53.8 million represented 0.60% of total assets at September 30, 2026, compared to $52.9 million or 0.60% of total assets at June 30, 2026, and $53.0 million or 0.63% of total assets at September 30, 2025. Loans past due 30-89 days totaled $6.7 million at September 30, 2026, $4.7 million at June 30, 2026, and $7.8 million at September 30, 2025.

Special Mention and Substandard loans and leases totaled $151.1 million at September 30, 2026, compared to $140.0 million reported at June 30, 2026, and $144.2 million at September 30, 2025. Special Mention loans increased $6.8 million and Substandard loans increased by $4.3 million from the prior quarter end. These increases were primarily attributable to two commercial real estate relationships, including the downgrade of a $12.7 million credit to Special Mention and the migration of an existing $4.6 million Special Mention credit to Substandard. Management believes that the collateral securing these credits remains sufficient to mitigate potential loss exposure.

CAPITAL POSITION

Capital ratios at September 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 September 30, 2026, unchanged compared to June 30, 2026, and increased compared to 13.27% at September 30, 2025. The ratio of Tier 1 capital to average assets was 10.73% at September 30, 2026, compared to 10.69% at June 30, 2026, and 9.41% at September 30, 2025.

The Company repurchased 18,118 shares of common stock at an aggregate cost of $1.8 million during the third quarter of 2026 and repurchased a total of 53,636 shares of common stock at an aggregate cost of $4.5 million during the year-to-date period ending September 30, 2026. All of these shares were purchased under the Company's 2025 Stock Repurchase Plan.

LIQUIDITY POSITION

The Company's liquidity position at September 30, 2026 was consistent with its position at June 30, 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 $1.5 billion, or 17.1% of total assets, at September 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 and substandard loans. 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	9/30/2026			12/31/2025
				(Audited)
Cash and noninterest bearing balances due from banks	$	81,779		$	50,717
Interest bearing balances due from banks		160,372			82,100
Cash and Cash Equivalents		242,151			132,817
Available-for-sale debt securities, at fair value (amortized cost of $1,419,705 at September 30, 2026 and $1,391,379 at December 31, 2025)		1,337,945			1,382,068
Held-to-maturity debt securities, at amortized cost (fair value of $274,121 at September 30, 2026 and $283,860 at December 31, 2025)		312,581			312,528
Equity securities, at fair value		749			800
Loans held for sale		0			43,440
Total loans and leases, net of unearned income and deferred costs and fees		6,724,973			6,446,245
Less: Allowance for credit losses		60,455			57,671
Net Loans and Leases		6,664,518			6,388,574
Federal Home Loan Bank and other stock		26,508			32,307
Bank premises and equipment, net		70,213			72,418
Corporate owned life insurance		79,559			77,843
Goodwill		72,736			72,736
Accrued interest and other assets		171,557			152,737
Total Assets	$	8,978,517		$	8,668,268
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		4,182,542			3,742,402
Time		1,252,938			1,298,393
Noninterest bearing		1,973,556			1,896,967
Total Deposits		7,409,036			6,937,762
Federal funds purchased and securities sold under agreements to repurchase		133,854			95,569
Other borrowings		406,712			564,446
Other liabilities		92,535			132,114
Total Liabilities	$	8,042,137		$	7,729,891
EQUITY
Shareholders' equity:
Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,391,116 at September 30, 2026; and 14,449,845 at December 31, 2025		1,440			1,446
Additional paid-in capital		295,991			299,206
Retained earnings		716,829			662,161
Accumulated other comprehensive loss		(73,187	)		(19,054	)
Treasury stock, at cost – 91,740 shares at September 30, 2026, and 104,492 shares at December 31, 2025		(4,693	)		(5,382	)
Total Equity	$	936,380		$	938,377
Total Liabilities and Equity	$	8,978,517		$	8,668,268

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)	Three Months Ended								Nine Months Ended
	9/30/2026			06/30/2026			9/30/2025		9/30/2026			9/30/2025
INTEREST AND DIVIDEND INCOME
Loans	$	93,706		$	90,087		$	86,309	$	270,916		$	247,232
Due from banks		142			193			187		501			549
Available-for-sale debt securities		14,201			13,896			9,738		41,799			27,778
Held-to-maturity debt securities		1,225			1,222			1,224		3,665			3,661
Federal Home Loan Bank and other stock		535			543			598		1,538			1,944
Total Interest and Dividend Income		109,809		$	105,941		$	98,056	$	318,419		$	281,164
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		4,006			4,192			4,063		12,676			12,710
Other deposits		23,690			22,338			24,210		67,559			69,692
Federal funds purchased and securities sold under agreements to repurchase		43			59			23		120			125
Other borrowings		4,769			5,369			5,882		14,919			17,967
Total Interest Expense		32,508			31,958			34,178		95,274			100,494
Net Interest Income		77,301			73,983			63,878		223,145			180,670
Less: Provision for credit loss expense		3,012			1,502			2,490		6,016			10,557
Net Interest Income After Provision for Credit Loss Expense		74,289			72,481			61,388		217,129			170,113
NONINTEREST INCOME
Insurance commissions and fees		0			0			11,282		0			32,490
Wealth management fees		5,316			5,229			4,979		15,811			15,062
Service charges on deposit accounts		2,008			1,816			1,844		5,619			5,439
Card services income		2,965			3,296			2,891		8,903			8,667
Other income		2,305			2,797			2,557		7,238			9,424
Net (loss) gain on securities transactions		(42	)		(4	)		11		(51	)		26
Total Noninterest Income		12,552			13,134			23,564		37,520			71,108
NONINTEREST EXPENSE
Salaries and wages		23,731			22,955			27,581		68,634			78,926
Other employee benefits		6,121			5,875			6,073		18,803			20,335
Net occupancy expense of premises		2,943			3,296			3,173		9,694			9,851
Furniture and fixture expense		2,006			2,025			1,825		6,058			5,681
Other operating expense		14,285			12,915			15,195		40,689			41,284
Total Noninterest Expenses		49,086			47,066			53,847		143,878			156,077
Income Before Income Tax Expense		37,755			38,549			31,105		110,771			85,144
Income Tax Expense		9,101			9,245			7,432		26,739			20,321
Net Income	$	28,654			29,304			23,673		84,032			64,823
Basic Earnings Per Share	$	2.01		$	2.06		$	1.66	$	5.90		$	4.55
Diluted Earnings Per Share	$	2.00		$	2.04		$	1.65	$	5.86		$	4.52

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended							Quarter Ended							Quarter Ended
	September 30, 2026							June 30, 2026							September 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	$	16,483	$	142		3.42	%	$	17,416	$	192		4.42	%	$	18,474	$	187		4.02	%
Securities^1
U.S. Government securities		1,662,045		14,936		3.56	%		1,650,865		14,640		3.56	%		1,616,048		10,466		2.57	%
State and municipal^2		80,410		541		2.67	%		79,748		526		2.65	%		82,462		541		2.60	%
Other Securities^2		3,281		51		6.17	%		3,293		50		6.09	%		3,283		54		6.52	%
Total securities		1,745,736		15,528		3.53	%		1,733,906		15,216		3.52	%		1,701,793		11,061		2.58	%
FHLBNY and FRB stock		29,516		535		7.19	%		32,128		543		6.78	%		31,023		598		7.65	%
Total loans and leases, net of unearned income^2,3		6,644,377		93,882		5.60	%		6,525,286		90,243		5.55	%		6,216,384		86,522		5.52	%
Total interest-earning assets		8,436,112		110,087		5.18	%		8,308,736		106,194		5.13	%		7,967,674		98,368		4.90	%
Other assets		341,862							352,338							329,774
Total assets	$	8,777,974						$	8,661,074						$	8,297,448
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,947,302	$	17,602		1.77	%	$	3,855,494	$	16,359		1.70	%	$	3,724,882	$	17,306		1.84	%
Time deposits		1,278,614		10,094		3.13	%		1,280,086		10,171		3.19	%		1,228,830		10,967		3.54	%
Total interest-bearing deposits		5,225,916		27,696		2.10	%		5,135,580		26,530		2.07	%		4,953,712		28,273		2.26	%
Federal funds purchased & securities sold under agreements to repurchase		35,217		43		0.48	%		40,636		59		0.58	%		41,524		23		0.22	%
Other borrowings		484,057		4,769		3.91	%		550,041		5,369		3.92	%		535,327		5,882		4.36	%
Total interest-bearing liabilities		5,745,190		32,508		2.24	%		5,726,257		31,958		2.24	%		5,530,563		34,178		2.45	%
Noninterest bearing deposits		1,982,062							1,891,560							1,892,896
Accrued expenses and other liabilities		91,062							89,540							102,462
Total liabilities		7,818,314							7,707,357							7,525,921
Total equity		959,660							953,717							771,527
Total liabilities and equity	$	8,777,974						$	8,661,074						$	8,297,448
Interest rate spread						2.93	%						2.89	%						2.45	%
Tax-equivalent net interest income/margin on earning assets				77,579		3.65	%				74,236		3.58	%				64,190		3.20	%
Tax-equivalent adjustment				(278	)						(253	)						(312	)
Net interest income			$	77,301						$	73,983						$	63,878

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Year to Date Period Ended							Year to Date Period Ended
	September 30, 2026							September 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	$	15,776	$	501		4.25	%	$	16,914	$	549		4.34	%
Securities^1
U.S. Government securities		1,649,986		44,011		3.57	%		1,608,371		29,933		2.49	%
State and municipal^2		80,456		1,603		2.66	%		84,466		1,649		2.61	%
Other securities		3,293		150		6.09	%		3,279		160		6.52	%
Total securities		1,733,735		45,764		3.53	%		1,696,116		31,742		2.50	%
FHLBNY and FRB stock		30,222		1,538		6.80	%		31,552		1,944		8.24	%
Total loans and leases, net of unearned income^2,3		6,535,605		271,463		5.55	%		6,124,468		247,859		5.41	%
Total interest-earning assets		8,315,338		319,266		5.13	%		7,869,050		282,094		4.79	%
Other assets		358,839							306,039
Total assets	$	8,674,177						$	8,175,089
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,875,988	$	49,548		1.71	%	$	3,696,142	$	49,903		1.81	%
Time deposits		1,281,441		30,687		3.20	%		1,206,273		32,499		3.60	%
Total interest-bearing deposits		5,157,429		80,235		2.08	%		4,902,415		82,402		2.25	%
Federal funds purchased & securities sold under agreements to repurchase		39,519		120		0.41	%		43,744		125		0.38	%
Other borrowings		508,443		14,919		3.92	%		549,192		17,967		4.37	%
Total interest-bearing liabilities		5,705,391		95,274		2.23	%		5,495,351		100,494		2.45	%
Noninterest bearing deposits		1,910,151							1,830,755
Accrued expenses and other liabilities		103,681							98,953
Total liabilities		7,719,223							7,425,059
Total equity		954,954							750,030
Total liabilities and equity	$	8,674,177						$	8,175,089
Interest rate spread						2.90	%						2.35	%
Net interest income (TE)/margin on earning assets				223,992		3.60	%				181,600		3.09	%
Tax Equivalent Adjustment				(847	)						(930	)
Net interest income			$	223,145						$	180,670

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
	Quarter-Ended										Year-Ended
Period End Balance Sheet	Sep-26		Jun-26		Mar-26		Dec-25		Sep-25		Dec-25
Securities	$	1,651,275	$	1,706,414	$	1,702,250	$	1,695,396	$	1,604,357	$	1,695,396
Total Loans		6,724,973		6,597,178		6,477,943		6,446,245		6,288,071		6,446,245
Allowance for credit losses		60,455		58,479		58,108		57,671		59,889		57,671
Total assets		8,978,517		8,801,522		8,695,761		8,668,268		8,468,731		8,668,268
Total deposits		7,409,036		7,029,111		7,054,172		6,937,762		7,053,070		6,937,762
Brokered deposits		140,109		169,014		109,712		114,391		145,223		114,391
Federal funds purchased and securities sold under agreements to repurchase		133,854		181,710		118,133		95,569		80,804		95,569
Other borrowings		406,712		546,358		449,446		564,446		444,866		564,446
Total equity		936,380		959,932		946,741		938,377		788,805		938,377

Average Balance Sheet
Average earning assets	$	8,436,112	$	8,308,736	$	8,198,556	$	8,058,427	$	7,967,674	$	7,916,783
Average assets		8,777,974		8,661,074		8,581,323		8,372,287		8,297,448		8,224,794
Average interest-bearing liabilities		5,745,190		5,726,257		5,643,611		5,484,440		5,530,563		5,492,601
Average equity		959,660		953,717		951,393		875,658		771,527		781,695

Share data
Weighted average shares outstanding (basic)		14,223,648		14,224,972		14,250,969		14,270,206		14,248,533		14,252,810
Weighted average shares outstanding (diluted)		14,345,850		14,333,390		14,347,514		14,356,680		14,345,219		14,335,358
Period-end shares outstanding		14,363,661		14,382,196		14,392,337		14,420,495		14,431,300		14,420,495
Common equity book value per share	$	65.19	$	66.74	$	65.78	$	65.07	$	54.66	$	65.07
Tangible book value per share (Non-GAAP)**	$	60.12	$	61.68	$	60.73	$	60.03	$	48.19	$	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	$	77,301	$	73,983	$	71,861	$	69,061	$	63,878	$	249,731
Provision for credit loss expense		3,012		1,502		1,502		977		2,490		11,534
Noninterest income		12,552		13,134		11,834		125,763		23,564		196,871
Noninterest expense		49,086		47,066		47,726		54,135		53,847		210,212
Income tax expense		9,101		9,245		8,393		43,464		7,432		63,785
Net income attributable to Tompkins Financial Corporation		28,654		29,304		26,074		96,248		23,673		161,071
Basic earnings per share^4		2.01		2.06		1.83		6.74		1.66		11.30
Diluted earnings per share^4		2.00		2.04		1.82		6.70		1.65		11.24

Nonperforming Assets
Nonaccrual loans and leases	$	53,128	$	52,426	$	51,271	$	47,794	$	52,805	$	47,794
Loans and leases 90 days past due and accruing		313		122		124		146		166		146
Total nonperforming loans and leases		53,441		52,548		51,395		47,940		52,971		47,940
OREO		384		384		269		229		0		229
Total nonperforming assets	$	53,825	$	52,932	$	51,664	$	48,169	$	52,971	$	48,169

 

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
	Quarter-Ended										Year-Ended
Delinquency - Total loan and lease portfolio	Sep-26		Jun-26		Mar-26		Dec-25		Sep-25		Dec-25
Loans and leases 30-89 days past due and
accruing	$	6,702	$	4,666	$	5,874	$	8,806	$	7,841	$	8,806
Loans and leases 90 days past due and accruing		313		122		124		146		166		146
Total loans and leases past due and accruing		7,015		4,788		5,998		8,952		8,007		8,952

Allowance for Credit Losses
Balance at beginning of period	$	58,479		$	58,108		$	57,671	$	59,889		$	58,555	$	56,496
Provision for credit losses		3,173			1,962			1,212		1,064			2,454	$	11,564
Net loan and lease charge-offs (recoveries)		1,197			1,591			775		3,282			1,120	$	10,389
Allowance for credit losses at end of period	$	60,455		$	58,479		$	58,108	$	57,671		$	59,889	$	57,671
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period	$	1,263		$	1,723		$	1,433	$	1,520		$	1,484	$	1,463
Provision (credit) for credit losses		(161	)		(460	)		290		(87	)		36	$	(30	)
Allowance for credit losses at end of period	$	1,102		$	1,263		$	1,723	$	1,433		$	1,520	$	1,433

Loan Classification - Total Portfolio
Special Mention	$	90,401	$	83,631	$	66,104	$	100,717	$	88,398	$	100,717
Substandard		60,689		56,380		54,331		33,764		55,762		33,764

Ratio Analysis

Credit Quality
Nonperforming loans and leases/total loans and leases	0.79	%	0.80	%	0.79	%	0.74	%	0.84	%	0.74	%
Nonperforming assets/total assets	0.60	%	0.60	%	0.59	%	0.56	%	0.63	%	0.56	%
Allowance for credit losses/total loans and leases	0.90	%	0.89	%	0.90	%	0.89	%	0.95	%	0.89	%
Allowance/nonperforming loans and leases	113.12	%	111.29	%	113.06	%	120.30	%	113.06	%	120.30	%
Net loan and lease losses (recoveries) annualized/total average loans and leases	0.07	%	0.10	%	0.05	%	0.21	%	0.07	%	0.17	%

Capital Adequacy
Tier 1 Capital (to average assets)	10.73	%	10.69	%	10.58	%	10.62	%	9.41	%	10.62	%
Total Capital (to risk-weighted assets)	14.89	%	14.89	%	14.78	%	14.56	%	13.27	%	14.56	%

Profitability (period-end)
Return on average assets *	1.30	%	1.36	%	1.23	%	4.56	%	1.13	%	1.96	%
Return on average equity *	11.85	%	12.32	%	11.11	%	43.61	%	12.17	%	20.61	%
Net interest margin (TE) *	3.65	%	3.58	%	3.57	%	3.42	%	3.20	%	3.17	%
Average yield on interest-earning assets*	5.18	%	5.13	%	5.09	%	4.98	%	4.90	%	4.84	%
Average cost of deposits*	1.52	%	1.51	%	1.51	%	1.58	%	1.64	%	1.62	%
Average cost of funds*	1.67	%	1.68	%	1.67	%	1.71	%	1.83	%	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
	Sep-26		Jun-26		Mar-26		Dec-25		Sep-25		Dec-25
Common equity book value per share (GAAP)	$	65.19	$	66.74	$	65.78	$	65.07	$	54.66	$	65.07
Total common equity	$	936,380	$	959,932	$	946,741	$	938,377	$	788,805	$	938,377
Less: Goodwill and intangibles*		72,766		72,766		72,766		72,766		93,405		72,766
Tangible common equity (Non-GAAP)		863,614		887,166		873,975		865,611		695,400		865,611
Ending shares outstanding		14,363,661		14,382,196		14,392,337		14,420,495		14,431,300		14,420,495
Tangible book value per share (Non-GAAP)	$	60.12	$	61.68	$	60.73	$	60.03	$	48.19	$	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.