Tompkins Financial Corporation Reports Increased Fourth Quarter Financial Results

Rhea-AI Summary

Tompkins Financial (TMP) reported strong financial results for Q4 2024, with diluted earnings per share of $1.37, up 5.4% from Q3 2024 and 30.5% from Q4 2023. Net income for Q4 2024 was $19.7 million, showing increases of 5.5% quarterly and 31.0% yearly.

For the full year 2024, the company achieved diluted EPS of $4.97, with net income of $70.9 million, marking a significant improvement from 2023, which included a $52.9 million after-tax loss from securities sales. The improved performance was driven by increased net interest income, fee-based business growth, and lower operating expenses.

Key metrics include: net interest margin improvement to 2.93% in Q4, total loans up 7.4% year-over-year to reach $6.5 billion, and a loan-to-deposit ratio of 93.0%. Fee-based services revenue increased by 7.7% compared to Q4 2023, while noninterest expenses decreased by 2.6% year-over-year.

Positive

• Net income increased 31.0% year-over-year to $19.7 million in Q4 2024
• Diluted EPS grew 30.5% year-over-year to $1.37 in Q4 2024
• Net interest margin improved to 2.93% from 2.79% in previous quarter
• Total loans increased 7.4% year-over-year
• Fee-based services revenue grew 7.7% compared to Q4 2023
• Noninterest expenses decreased 2.6% year-over-year

Negative

• Total deposits decreased 1.6% from Q3 2024
• Noninterest bearing deposits ratio declined to 28.0% from 29.6% year-over-year
• Loss of New York State tax benefits due to assets exceeding $8.0 billion threshold

Insights

Financial Analyst

Tompkins Financial's Q4 2024 results demonstrate robust financial health and operational efficiency improvements across multiple fronts. The 31% year-over-year increase in quarterly net income to $19.7 million reflects successful execution in three key areas:

First, the bank has effectively managed its funding costs, with total average cost of funds decreasing 13 basis points quarter-over-quarter to 1.88%. This improvement, coupled with loan yield optimization, led to net interest margin expansion to 2.93%, significantly outperforming many regional bank peers in the current rate environment.

Second, the 7.7% growth in fee-based revenues shows successful diversification of income streams, with particularly strong performance in insurance (9.0% growth) and wealth management (10.3% growth). This recurring revenue provides stability and reduces reliance on net interest income.

However, investors should monitor two key risk factors:

• The loan-to-deposit ratio has increased to 93.0% from 87.6% year-over-year, approaching levels that might require more expensive funding sources
• The 2.4% quarterly loan growth, while positive for earnings, occurred alongside a 1.6% deposit decline, a trend that warrants attention in terms of funding stability

The bank's efficiency initiatives have yielded significant results, with noninterest expenses declining 2.6% year-over-year, primarily through technology optimization and reduced marketing costs. This cost discipline, combined with revenue growth, positions the bank well for improved profitability metrics in 2025.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131969196/en/

Stephen S. Romaine, President & CEO

Matthew Tomazin, Executive VP, CFO & Treasurer

Tompkins Financial Corporation (888) 503-5753

Source: Tompkins Financial Corporation

FAQ

What was TMP's earnings per share (EPS) for Q4 2024?

TMP reported diluted earnings per share of $1.37 for Q4 2024, representing a 5.4% increase from Q3 2024 and a 30.5% increase from Q4 2023.

How much did TMP's net interest margin improve in Q4 2024?

TMP's net interest margin improved to 2.93% in Q4 2024, up 14 basis points from Q3 2024 and up 11 basis points from Q4 2023.

What was TMP's loan growth in Q4 2024?

TMP's total loans increased by $138.7 million (2.4%) compared to Q3 2024, representing a 9.4% annualized growth rate, and were up $414.0 million (7.4%) year-over-year.

How did TMP's fee-based services perform in Q4 2024?

TMP's fee-based services revenue increased by $1.3 million or 7.7% compared to Q4 2023, with growth across insurance, wealth management, service charges, and card services.

What was TMP's total deposit position at the end of 2024?

TMP's total deposits were $6.5 billion at December 31, 2024, down $106.1 million (1.6%) from Q3 2024, but up $72.0 million (1.1%) from December 31, 2023.