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 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

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

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

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

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

11,282

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

)

(51

)

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

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

6.17

3,293

6.09

3,283

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

0.48

40,636

0.58

41,524

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

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

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

269

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

)

(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

0.59

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

14.78

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

1.58

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

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.