Tompkins Financial Corporation Reports Increased Fourth Quarter Financial Results

ITHACA, N.Y.--(BUSINESS WIRE)--Tompkins Financial Corporation (NYSE American: TMP) Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.37 for the fourth quarter of 2024, up 5.4% and 30.5% compared to the immediate prior quarter and the fourth quarter of 2023, respectively. Net income for the fourth quarter of 2024 was $19.7 million, up $1.0 million or 5.5% compared to the third quarter of 2024, and up $4.7 million, or 31.0%, when compared to the fourth quarter of 2023. For the year ended December 31, 2024, diluted earnings per share of $4.97 were up 653.0% compared to the year ended December 31, 2023. Net income for 2024 was $70.9 million, an increase of $61.3 million compared to 2023. The 2023 results included an after-tax loss of $52.9 million or $3.69 loss per diluted share, related to the sale of $510.5 million of available-for-sale debt securities. Earnings performance for 2024 benefited from increased net interest income, growth in fee-based businesses and lower operating expenses. Tompkins President and CEO, Stephen Romaine, commented, "We are pleased to report increased earnings for the year and fourth quarter of 2024. Our improved results were driven by growth in revenue and lower operating expense. Revenue growth was broad and supported by strong loan growth, deposit growth, and growth in our fee-based businesses. Our fourth quarter ended the year with 9.4% annualized loan growth, 14 basis points of net interest margin expansion and improving profitability metrics. We look forward to the new year as we believe we remain well positioned to continue to drive growth through quality customer relationships." SELECTED HIGHLIGHTS FOR THE PERIOD: Net interest margin for the fourth quarter of 2024 was 2.93%, improved from the immediate prior quarter of 2.79%, and 2.82% for the same period of 2023. Total average cost of funds of 1.88% for the fourth quarter of 2024 was down 13 basis points compared to the third quarter of 2024, as a result of funding mix and lower interest rates. Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the fourth quarter of 2024 were up $1.3 million or 7.7% compared to the fourth quarter of 2023. Total noninterest expenses for the fourth quarter of 2024 were in line with the third quarter of 2024, and down $1.3 million or 2.6% compared to the fourth quarter of 2023. Total loans at December 31, 2024 were up $138.7 million, or 2.4% compared to September 30, 2024 (9.4% on an annualized basis), and up $414.0 million, or 7.4%, from December 31, 2023. Total deposits at December 31, 2024 were $6.5 billion, down $106.1 million, or 1.6%, from September 30, 2024, and up $72.0 million, or 1.1%, from December 31, 2023. Loan to deposit ratio at December 31, 2024 was 93.0%, compared to 89.4% at September 30, 2024, and 87.6% at December 31, 2023. Regulatory Tier 1 capital to average assets was 9.27% at December 31, 2024, up compared to 9.19% at September 30, 2024, and 9.08% at December 31, 2023. NET INTEREST INCOME Net interest income was $56.3 million for the fourth quarter of 2024, up $3.1 million or 5.8% compared to the third quarter of 2024, and up $3.9 million or 7.5% compared to the fourth quarter of 2023. The increase in net interest income compared to the third quarter of 2024 was due to improvement in net interest margin, which is explained further below, and an increase in average loan balances. The increase when compared to the fourth quarter of 2023 was due to increases in both average loan balances and average loan yields, and was partially offset by higher average funding costs. For the year ended December 31, 2024, net interest income was $211.1 million, an increase of $1.6 million or 0.8% when compared to the year ended December 31, 2023. The increase reflects growth in average loan balances and higher yields on average earning assets, partially offset by higher average cost of funds. Net interest margin was 2.93% for the fourth quarter of 2024, up 14 basis points when compared to the immediate prior quarter, and up 11 basis points from 2.82% for the fourth quarter of 2023. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to lower funding costs resulting from growth in average deposits and lower market rates. The increase in net interest margin when compared to the same period prior year was mainly a result of higher yields on average interest earning assets and higher average loan balances, and was partially offset by higher average funding costs. Average loans for the quarter ended December 31, 2024 were up $100.9 million, or 1.7%, from the third quarter of 2024, and were up $445.1 million, or 8.1%, compared to the prior year period. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended December 31, 2024 was 4.67%, a slight increase from 4.66% for the quarter ended September 30, 2024, and up from 4.34% for the quarter ended December 31, 2023. Average total deposits of $6.6 billion for the fourth quarter of 2024 were up $217.3 million, or 3.4%, compared to the third quarter of 2024, and up $91.9 million or 1.4% compared to the same period in 2023. The cost of interest-bearing deposits of 2.31% for the fourth quarter of 2024 was down 4 basis points from 2.35% for the third quarter of 2024, and up 27 basis points from 2.04% for the fourth quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the fourth quarter of 2024 was 28.0% compared to 28.9% for the third quarter of 2024, and 29.6% for the fourth quarter of 2023. The average cost of interest-bearing liabilities for the fourth quarter of 2024 of 2.53% represents a decrease of 18 basis points over the third quarter of 2024, and an increase of 28 basis points over the same period in 2023. NONINTEREST INCOME Noninterest income of $20.8 million for the fourth quarter of 2024 was up $2.0 million or 10.5% compared to the same period in 2023. The increase in quarterly noninterest income when compared to the same period in 2023 was mainly due to increases in fee-based revenues, which includes insurance commissions and fees, up $698,000 or 9.0%; wealth management fees, up $456,000 or 10.3%; service charges on deposit accounts, up $81,000 or 4.6%; and card services income, up $60,000 or 2.1%. Other income was up $763,000 or 38.6% for the quarter ended December 31, 2024 compared to the same period in 2023, and included increases in gains on loan sales and derivative swap fee income. Noninterest income of $88.1 million for the year ended December 31, 2024 was up $77.9 million or 760.5% compared to the year ended December 31, 2023. The increase in noninterest income compared to 2023 was mainly due to the $70.0 million pre-tax loss on the sale of available-for-sale debt securities in 2023 as discussed above. Also contributing to the increase for the year ended December 31, 2024 over the prior year were fee-based revenues, which includes insurance commissions and fees, up $1.7 million or 4.7%; wealth management fees, up $1.6 million or 9.1%; service charges on deposit accounts, up $375,000 or 5.4%; and card services income, up $569,000 or 5.0%. Other income was up $3.6 million for the year ended December 31, 2024 compared to 2023, and included increases in gains on loan sales, derivative swap fee income and earnings on bank-owned life insurance. NONINTEREST EXPENSE Noninterest expense was $50.0 million for the fourth quarter of 2024, down $1.3 million or 2.6% compared to the fourth quarter of 2023. Other operating expenses for the quarter were down $3.0 million or 20.4% from the same period prior year and included decreases in technology, down $1.1 million; marketing, down $665,000; other losses, down $364,000; and professional fees, down $242,000. Noninterest expense for the year ended December 31, 2024 was $199.6 million, a decrease of $3.7 million or 1.8% compared to the $203.3 million reported for 2023. The year-over-year decrease was mainly driven by lower other operating expenses, which were down $5.1 million or 9.1% and included decreases in technology, down $1.3 million; marketing, down $1.2 million; professional fees, down $1.0 million; retirement plan expense, down $709,000; and travel and meeting expense, down $667,000. Partially offsetting these decreases, FDIC insurance expense was up $1.4 million or 32.5% year-over-year. INCOME TAX EXPENSE The provision for income tax expense for the fourth quarter of 2024 was $6.0 million for an effective rate of 23.5%, compared to a provision for tax expense of $3.1 million and an effective rate of 17.2% for the same quarter in 2023. For the year ended December 31, 2024, the provision for income tax expense was $22.0 million and the effective tax rate was 23.7% compared to tax expense of $2.5 million and an effective tax rate of 20.6% for 2023. Increased tax expense for both the quarter and year-to-date periods in 2024 was mainly a result of lower income in 2023 associated with the loss on the sale of securities described above. In 2024, the Company's average assets exceeded the $8.0 billion threshold for receiving certain New York State tax benefits associated with the Company’s real estate investment trust (“REIT”) subsidiaries. Therefore, the Company did not recognize any tax benefit in connection with the REITs in 2024. In the fourth quarter of 2024, the Company’s bank subsidiary approved the dissolution of the REITs. ASSET QUALITY The allowance for credit losses represented 0.94% of total loans and leases at December 31, 2024, unchanged compared to the most recent prior quarter, and up from 0.92% reported at December 31, 2023. The year over year increase in the allowance for credit losses coverage ratio includes changes for qualitative factors relating to loan growth and asset quality, model assumptions changes, and updates to economic forecasts for unemployment and GDP. The increase in allowance for credit losses was partially offset by lower off-balance sheet reserves due to model changes related to utilization rates and a decrease in loan pipeline. The ratio of the allowance to total nonperforming loans and leases was 111.06% at December 31, 2024, compared to 88.51% at September 30, 2024, and 82.84% at December 31, 2023. The increase in the ratio compared to the same prior year period was due to the decrease in nonperforming loans and leases discussed in more detail below. Provision for credit losses for the fourth quarter of 2024 was $1.4 million compared to $1.8 million for the same period in 2023. Provision for credit losses for the year ended December 31, 2024 was $6.6 million compared to $4.3 million for the year ended December 31, 2023. The increase in provision expense for the full year compared to 2023 was mainly driven by loan growth, an increase in net charge-offs and model assumption updates. Net charge-offs for the three months and year ended December 31, 2024 were $857,000 and $2.5 million, respectively, compared to net charge-offs of $410,000 and $1.6 million for the same periods in 2023. Nonperforming assets represented 0.80% of total assets at December 31, 2024, unchanged from December 31, 2023 but up slightly compared to 0.78% at September 30, 2024. At December 31, 2024, nonperforming loans and leases totaled $50.9 million, compared to $62.6 million at September 30, 2024 and $62.3 million at December 31, 2023. The decrease in nonperforming loans and leases at December 31, 2024 compared to December 31, 2023 was due to one commercial real estate loan for $14.2 million being moved from nonperforming loans to other real estate owned. The increase in loans past due 30-89 days at December 31, 2024 compared to prior quarter end and December 31, 2023 was mainly due to the inclusion of a $17.4 million commercial real estate loan. Special Mention and Substandard loans and leases totaled $111.1 million at December 31, 2024, compared to $126.0 million reported at September 30, 2024, and $123.1 million reported at December 31, 2023. The decrease was mainly due to the reclassification of one commercial real estate loan from nonperforming loans to other real estate owned as mentioned above. CAPITAL POSITION Capital ratios at December 31, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.08% at December 31, 2024, compared to 13.21% at September 30, 2024, and 13.36% at December 31, 2023. The decrease in the ratio is mainly a result of loan growth during the fourth quarter of 2024. The ratio of Tier 1 capital to average assets was 9.27% at December 31, 2024, compared to 9.19% at September 30, 2024, and 9.08% at December 31, 2023. LIQUIDITY POSITION The Company's liquidity position at December 31, 2024 was stable and consistent with the immediate prior quarter end. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank's Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintained ready access to liquidity of $1.3 billion, or 16.4% of total assets at December 31, 2024. ABOUT TOMPKINS FINANCIAL CORPORATION Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. For more information on Tompkins Financial, visit www.tompkinsfinancial.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", as well as the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to nonperforming loans and future growth. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, are among those that could cause actual results to differ materially from the forward-looking statements and historical performance: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and other sources of liquidity; gross domestic product growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; increased supervisory and regulatory scrutiny of financial institutions; technological developments and changes; cybersecurity incidents and threats; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact, including potential market volatility, of national and global events, including the response to bank failures, war and geopolitical matters (including the war in Israel and surrounding regions and the war in Ukraine), widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. The Company does not undertake any obligation to update its forward-looking statements. TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (In thousands, except share and per share data) (Unaudited) As of As of ASSETS 12/31/2024 12/31/2023 (Audited) Cash and noninterest bearing balances due from banks $ 53,635 $ 67,212 Interest bearing balances due from banks 80,763 12,330 Cash and Cash Equivalents 134,398 79,542 Available-for-sale debt securities, at fair value (amortized cost of $1,367,123 at December 31, 2024 and $1,548,482 at December 31, 2023) 1,231,532 1,416,650 Held-to-maturity debt securities, at amortized cost (fair value of $267,295 at December 31, 2024 and $267,455 at December 31, 2023) 312,462 312,401 Equity securities, at fair value 768 787 Total loans and leases, net of unearned income and deferred costs and fees 6,019,922 5,605,935 Less: Allowance for credit losses 56,496 51,584 Net Loans and Leases 5,963,426 5,554,351 Federal Home Loan Bank and other stock 42,255 33,719 Bank premises and equipment, net 76,626 79,687 Corporate owned life insurance 76,448 67,884 Goodwill 92,602 92,602 Other intangible assets, net 2,203 2,327 Accrued interest and other assets 176,360 179,799 Total Assets $ 8,109,080 $ 7,819,749 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,558,946 3,484,878 Time 1,068,375 998,013 Noninterest bearing 1,844,484 1,916,956 Total Deposits 6,471,805 6,399,847 Federal funds purchased and securities sold under agreements to repurchase 37,036 50,996 Other borrowings 790,247 602,100 Other liabilities 96,548 96,872 Total Liabilities $ 7,395,636 $ 7,149,815 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,468,013 at December 31, 2024; and 14,441,830 at December 31, 2023 1,447 1,444 Additional paid-in capital 300,073 297,183 Retained earnings 537,157 501,510 Accumulated other comprehensive loss (118,492 ) (125,005 ) Treasury stock, at cost – 131,497 shares at December 31, 2024, and 132,097 shares at December 31, 2023 (6,741 ) (6,610 ) Total Tompkins Financial Corporation Shareholders’ Equity 713,444 668,522 Noncontrolling interests 0 1,412 Total Equity $ 713,444 $ 669,934 Total Liabilities and Equity $ 8,109,080 $ 7,819,749 TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended 12/31/2024 09/30/2024 12/31/2023 12/31/2024 12/31/2023 INTEREST AND DIVIDEND INCOME Loans $ 78,911 $ 77,814 $ 69,035 $ 301,970 $ 260,434 Due from banks 235 168 227 741 674 Available-for-sale debt securities 8,760 9,037 9,717 36,779 29,677 Held-to-maturity debt securities 1,222 1,222 1,222 4,881 4,876 Federal Home Loan Bank and other stock 894 888 584 3,203 1,697 Total Interest and Dividend Income 90,022 $ 89,129 $ 80,785 $ 347,574 $ 297,358 INTEREST EXPENSE Time certificates of deposits of $250,000 or more 4,698 4,158 3,949 16,914 11,421 Other deposits 22,856 22,553 19,526 87,069 59,387 Federal funds purchased and securities sold under agreements to repurchase 11 11 14 46 58 Other borrowings 6,176 9,214 4,937 32,443 16,978 Total Interest Expense 33,741 35,936 28,426 136,472 87,844 Net Interest Income 56,281 53,193 52,359 211,102 209,514 Less: Provision for credit loss expense 1,411 2,174 1,761 6,611 4,339 Net Interest Income After Provision for Credit Loss Expense 54,870 51,019 50,598 204,491 205,175 NONINTEREST INCOME Insurance commissions and fees 8,471 11,283 7,773 39,100 37,351 Wealth management fees 4,878 4,925 4,422 19,589 17,951 Service charges on deposit accounts 1,854 1,872 1,773 7,288 6,913 Card services income 2,919 2,921 2,859 12,057 11,488 Other income 2,740 2,299 1,977 10,061 6,511 Net gain (loss) on securities transactions (33 ) 85 46 32 (69,973 ) Total Noninterest Income 20,829 23,385 18,850 88,127 10,241 NONINTEREST EXPENSE Salaries and wages 25,870 25,664 23,710 101,150 97,370 Other employee benefits 7,429 6,276 6,626 26,661 27,333 Net occupancy expense of premises 2,873 3,065 3,544 12,634 13,278 Furniture and fixture expense 1,834 1,797 2,425 7,666 8,663 Amortization of intangible assets 90 86 84 332 334 Other operating expense 11,870 12,989 14,911 51,199 56,314 Total Noninterest Expenses 49,966 49,877 51,300 199,642 203,292 Income Before Income Tax Expense 25,733 24,527 18,148 92,976 12,124 Income Tax Expense 6,045 5,858 3,114 22,003 2,495 Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 19,688 18,669 15,034 70,973 9,629 Less: Net Income Attributable to Noncontrolling Interests 30 31 31 123 124 Net Income Attributable to Tompkins Financial Corporation $ 19,658 18,638 15,003 70,850 9,505 Basic Earnings Per Share $ 1.38 $ 1.31 $ 1.06 $ 4.98 $ 0.66 Diluted Earnings Per Share $ 1.37 $ 1.30 $ 1.05 $ 4.97 $ 0.66 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended December 31, 2024 September 30, 2024 Average Average Balance Average Balance Average (Dollar amounts in thousands) (QTD) Interest Yield/Rate (QTD) Interest Yield/Rate ASSETS Interest-earning assets Interest-bearing balances due from banks $ 19,065 $ 235 4.90 % $ 13,189 $ 168 5.07 % Securities1 U.S. Government securities 1,619,973 9,471 2.33 % 1,664,611 9,740 2.33 % State and municipal2 86,481 557 2.56 % 87,799 560 2.54 % Other securities 3,287 55 6.66 % 3,282 60 7.27 % Total securities 1,709,741 10,083 2.35 % 1,755,692 10,360 2.35 % FHLBNY and FRB stock 30,665 894 11.60 % 38,534 888 9.17 % Total loans and leases, net of unearned income2,3 5,931,771 79,126 5.31 % 5,830,899 78,040 5.32 % Total interest-earning assets 7,691,242 90,338 4.67 % 7,638,314 89,456 4.66 % Other assets 282,490 276,610 Total assets $ 7,973,732 $ 7,914,924 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,661,006 $ 17,223 1.87 % $ 3,509,116 $ 16,635 1.89 % Time deposits 1,076,300 10,331 3.82 % 1,016,949 10,076 3.94 % Total interest-bearing deposits 4,737,306 27,554 2.31 % 4,526,065 26,711 2.35 % Federal funds purchased & securities sold under agreements to repurchase 39,519 11 0.11 % 42,449 11 0.10 % Other borrowings 534,219 6,176 4.60 % 709,474 9,214 5.17 % Total interest-bearing liabilities 5,311,044 33,741 2.53 % 5,277,988 35,936 2.71 % Noninterest bearing deposits 1,844,772 1,838,725 Accrued expenses and other liabilities 101,370 101,679 Total liabilities 7,257,186 7,218,392 Tompkins Financial Corporation Shareholders’ equity 715,299 695,057 Noncontrolling interest 1,247 1,475 Total equity 716,546 696,532 Total liabilities and equity $ 7,973,732 $ 7,914,924 Interest rate spread 2.15 % 1.95 % Net interest income (TE)/margin on earning assets 56,597 2.93 % 53,520 2.79 % Tax Equivalent Adjustment (316 ) (327 ) Net interest income $ 56,281 $ 53,193 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Quarter Ended Quarter Ended December 31, 2024 December 31, 2023 Average Average Balance Average Balance Average (Dollar amounts in thousands) (QTD) Interest Yield/Rate (QTD) Interest Yield/Rate ASSETS Interest-earning assets Interest-bearing balances due from banks $ 19,065 $ 235 4.90 % $ 14,351 $ 227 6.28 % Securities1 U.S. Government securities 1,619,973 9,471 2.33 % 1,789,043 10,411 2.31 % State and municipal2 86,481 557 2.56 % 90,070 574 2.53 % Other securities 3,287 55 6.66 % 3,242 60 7.37 % Total securities 1,709,741 10,083 2.35 % 1,882,355 11,045 2.33 % FHLBNY and FRB stock 30,665 894 11.60 % 24,555 584 9.44 % Total loans and leases, net of unearned income2,3 5,931,771 79,126 5.31 % 5,486,715 69,197 5.00 % Total interest-earning assets 7,691,242 90,338 4.67 % 7,407,976 81,053 4.34 % Other assets 282,490 259,006 Total assets $ 7,973,732 $ 7,666,982 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,661,006 $ 17,223 1.87 % $ 3,643,919 $ 14,915 1.62 % Time deposits 1,076,300 10,331 3.82 % 925,790 8,560 3.67 % Total interest-bearing deposits 4,737,306 27,554 2.31 % 4,569,709 23,475 2.04 % Federal funds purchased & securities sold under agreements to repurchase 39,519 11 0.11 % 51,903 14 0.10 % Other borrowings 534,219 6,176 4.60 % 398,932 4,937 4.91 % Total interest-bearing liabilities 5,311,044 33,741 2.53 % 5,020,544 28,426 2.25 % Noninterest bearing deposits 1,844,772 1,920,510 Accrued expenses and other liabilities 101,370 103,648 Total liabilities 7,257,186 7,044,702 Tompkins Financial Corporation Shareholders’ equity 715,299 620,789 Noncontrolling interest 1,247 1,491 Total equity 716,546 622,280 Total liabilities and equity $ 7,973,732 $ 7,666,982 Interest rate spread 2.15 % 2.09 % Net interest income (TE)/margin on earning assets 56,597 2.93 % 52,627 2.82 % Tax Equivalent Adjustment (316 ) (268 ) Net interest income $ 56,281 $ 52,359 Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited) Year to Date Period Ended Year to Date Period Ended December 31, 2024 December 31, 2023 Average Average Balance Average Balance Average (Dollar amounts in thousands) (YTD) Interest Yield/Rate (YTD) Interest Yield/Rate ASSETS Interest-earning assets Interest-bearing balances due from banks $ 14,052 $ 741 5.27 % $ 13,064 $ 674 5.16 % Securities1 U.S. Government securities 1,689,411 39,580 2.34 % 1,920,678 32,432 1.69 % State and municipal2 88,414 2,254 2.55 % 91,407 2,338 2.56 % Other securities 3,277 235 7.17 % 3,272 229 6.99 % Total securities 1,781,102 42,069 2.36 % 2,015,357 35,000 1.74 % FHLBNY and FRB stock 35,369 3,203 9.06 % 22,284 1,697 7.63 % Total loans and leases, net of unearned income2,3 5,768,575 302,780 5.25 % 5,357,699 261,144 4.87 % Total interest-earning assets 7,599,098 348,793 4.59 % 7,408,404 298,515 4.03 % Other assets 276,241 233,268 Total assets $ 7,875,339 $ 7,641,672 LIABILITIES & EQUITY Deposits Interest-bearing deposits Interest bearing checking, savings, & money market $ 3,553,942 $ 64,647 1.82 % $ 3,697,780 $ 46,820 1.27 % Time deposits 1,017,532 39,336 3.87 % 793,709 23,988 3.02 % Total interest-bearing deposits 4,571,474 103,983 2.27 % 4,491,489 70,808 1.58 % Federal funds purchased & securities sold under agreements to repurchase 42,752 46 0.11 % 55,773 58 0.10 % Other borrowings 638,721 32,443 5.08 % 363,530 16,978 4.67 % Total interest-bearing liabilities 5,252,947 136,472 2.60 % 4,910,792 87,844 1.79 % Noninterest bearing deposits 1,838,036 1,994,861 Accrued expenses and other liabilities 98,542 101,287 Total liabilities 7,189,525 7,006,940 Tompkins Financial Corporation Shareholders’ equity 684,417 633,267 Noncontrolling interest 1,397 1,465 Total equity 685,814 634,732 Total liabilities and equity $ 7,875,339 $ 7,641,672 Interest rate spread 1.99 % 2.24 % Net interest income (TE)/margin on earning assets 212,321 2.79 % 210,671 2.84 % Tax Equivalent Adjustment (1,219 ) (1,157 ) Net interest income $ 211,102 $ 209,514 Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data) Quarter-Ended Year-Ended Period End Balance Sheet Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Securities $ 1,544,762 $ 1,622,526 $ 1,630,654 $ 1,679,542 $ 1,729,838 $ 1,544,762 Total Loans 6,019,922 5,881,261 5,761,864 5,640,524 5,605,935 6,019,922 Allowance for credit losses 56,496 55,384 53,059 51,704 51,584 56,496 Total assets 8,109,080 8,006,427 7,869,522 7,778,034 7,819,749 8,109,080 Total deposits 6,471,805 6,577,896 6,285,896 6,449,616 6,399,847 6,471,805 Federal funds purchased and securities sold under agreements to repurchase 37,036 67,506 35,989 43,681 50,996 37,036 Other borrowings 790,247 539,327 773,627 522,600 602,100 790,247 Total common equity 713,444 719,855 674,630 667,906 668,522 713,444 Total equity 713,444 721,348 676,093 669,338 669,934 713,444 Average Balance Sheet Average earning assets $ 7,691,242 $ 7,638,314 $ 7,547,689 $ 7,517,705 $ 7,407,976 $ 7,599,098 Average assets 7,973,732 7,914,924 7,810,061 7,801,125 7,666,982 7,875,339 Average interest-bearing liabilities 5,311,044 5,277,988 5,215,003 5,206,836 5,020,544 5,252,947 Average equity 716,546 696,532 662,969 666,752 622,280 685,814 Share data Weighted average shares outstanding (basic) 14,230,297 14,215,607 14,214,574 14,211,910 14,194,503 14,218,106 Weighted average shares outstanding (diluted) 14,312,497 14,283,255 14,239,626 14,238,357 14,246,024 14,268,443 Period-end shares outstanding 14,436,363 14,394,255 14,395,204 14,405,019 14,405,920 14,436,363 Common equity book value per share $ 49.42 $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 49.42 Tangible book value per share (Non-GAAP)** $ 42.93 $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 42.93 **See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP. Income Statement Net interest income $ 56,281 $ 53,193 $ 50,953 $ 50,675 $ 52,359 $ 211,102 Provision for credit loss expense 1,411 2,174 2,172 854 1,761 6,611 Noninterest income 20,829 23,385 21,776 22,137 18,850 88,127 Noninterest expense 49,966 49,877 49,942 49,857 51,300 199,642 Income tax expense 6,045 5,858 4,902 5,198 3,114 22,003 Net income attributable to Tompkins Financial Corporation 19,658 18,638 15,682 16,872 15,003 70,850 Noncontrolling interests 30 31 31 31 31 123 Basic earnings per share4 1.38 1.31 1.10 1.19 1.06 4.98 Diluted earnings per share4 1.37 1.30 1.10 1.18 1.05 4.97 Nonperforming Assets Nonaccrual loans and leases $ 50,548 $ 62,381 $ 62,253 $ 62,544 $ 62,165 $ 50,548 Loans and leases 90 days past due and accruing 323 193 215 151 101 323 Total nonperforming loans and leases 50,871 62,574 62,468 62,695 62,266 50,871 OREO 14,314 81 80 0 131 14,314 Total nonperforming assets $ 65,185 $ 62,655 $ 62,548 $ 62,695 $ 62,397 $ 65,185 Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Quarter-Ended Year-Ended Delinquency - Total loan and lease portfolio Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Loans and leases 30-89 days past due and accruing $ 28,828 $ 7,031 $ 5,286 $ 8,015 $ 4,210 $ 28,828 Loans and leases 90 days past due and accruing 323 193 215 151 101 323 Total loans and leases past due and accruing 29,151 7,224 5,501 8,166 4,311 29,151 Allowance for Credit Losses Balance at beginning of period $ 55,384 $ 53,059 $ 51,704 $ 51,584 $ 49,336 $ 51,584 Provision for credit losses 1,969 3,237 1,864 348 2,658 $ 7,418 Net loan and lease charge-offs (recoveries) 857 912 509 228 410 $ 2,506 Allowance for credit losses at end of period $ 56,496 $ 55,384 $ 53,059 $ 51,704 $ 51,584 $ 56,496 Allowance for Credit Losses - Off-Balance Sheet Exposure Balance at beginning of period $ 2,021 $ 3,084 $ 2,776 $ 2,270 $ 3,167 $ 2,270 (Credit) provision for credit losses (558 ) (1,063 ) 308 506 (897 ) $ (807 ) Allowance for credit losses at end of period $ 1,463 $ 2,021 $ 3,084 $ 2,776 $ 2,270 $ 1,463 Loan Classification - Total Portfolio Special Mention $ 36,923 $ 58,758 $ 48,712 $ 46,302 $ 50,368 $ 36,923 Substandard 74,163 67,261 67,509 72,412 72,717 74,163 Ratio Analysis Credit Quality Nonperforming loans and leases/total loans and leases 0.85 % 1.06 % 1.08 % 1.11 % 1.11 % 0.85 % Nonperforming assets/total assets 0.80 % 0.78 % 0.79 % 0.81 % 0.80 % 0.80 % Allowance for credit losses/total loans and leases 0.94 % 0.94 % 0.92 % 0.92 % 0.92 % 0.94 % Allowance/nonperforming loans and leases 111.06 % 88.51 % 84.94 % 82.47 % 82.84 % 111.06 % Net loan and lease losses (recoveries) annualized/total average loans and leases 0.06 % 0.06 % 0.04 % 0.02 % 0.03 % 0.04 % Capital Adequacy Tier 1 Capital (to average assets) 9.27 % 9.19 % 9.15 % 9.08 % 9.08 % 9.27 % Total Capital (to risk-weighted assets) 13.08 % 13.21 % 13.26 % 13.43 % 13.36 % 13.08 % Profitability (period-end) Return on average assets * 0.98 % 0.94 % 0.81 % 0.87 % 0.78 % 0.90 % Return on average equity * 10.91 % 10.65 % 9.51 % 10.18 % 9.56 % 10.33 % Net interest margin (TE) * 2.93 % 2.79 % 2.73 % 2.73 % 2.82 % 2.79 % Average yield on interest-earning assets* 4.67 % 4.66 % 4.56 % 4.47 % 4.34 % 4.59 % Average cost of deposits* 1.67 % 1.67 % 1.61 % 1.54 % 1.43 % 1.62 % Average cost of funds* 1.88 % 2.01 % 1.96 % 1.86 % 1.62 % 1.92 % * Quarterly ratios have been annualized Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued Non-GAAP Measures This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP) Quarter-Ended Year-Ended Dec-24 Sep-24 Jun-24 Mar-24 Dec-23 Dec-24 Common equity book value per share (GAAP) $ 49.42 $ 50.01 $ 46.86 $ 46.37 $ 46.41 $ 49.42 Total common equity $ 713,444 $ 719,855 $ 674,630 $ 667,906 $ 668,522 $ 713,444 Less: Goodwill and intangibles 93,670 93,760 93,847 93,926 94,003 93,670 Tangible common equity (Non-GAAP) 619,774 626,095 580,783 573,980 574,519 619,774 Ending shares outstanding 14,436,363 14,394,255 14,395,204 14,405,019 14,405,920 14,436,363 Tangible book value per share (Non-GAAP) $ 42.93 $ 43.50 $ 40.35 $ 39.85 $ 39.88 $ 42.93 1 Average balances and yields on available-for-sale securities are based on historical amortized cost. 2 Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2024 and 2023 to increase tax exempt interest income to taxable-equivalent basis. 3 Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 4 Earnings per share for the full fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.

Tompkins Financial Corporation Reports Increased Fourth Quarter Financial Results

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