EX-99.1 2 q12025pressrelease.htm EX-99.1 Document


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For more information contact:
Stephen S. Romaine, President & CEO
Matthew Tomazin, Executive VP, CFO & Treasurer
Tompkins Financial Corporation (888) 503-5753

For Immediate Release
Friday, April 25, 2025

Tompkins Financial Corporation Reports Improved First Quarter Financial Results

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.37 for the first quarter of 2025, unchanged from the immediate prior quarter, and up 16.1% from diluted earnings per share of $1.18 reported in the first quarter of 2024.

Net income for the first quarter of 2025 was $19.7 million, in line with the immediate prior quarter, and up 16.6% from the $16.9 million reported for the same period in 2024. The increase in net income from the first quarter of 2024 was mainly a result of higher net interest income, driven by increased interest income on loans, stabilized funding costs, and growth in fee-based revenues and other income, partially offset by higher provision for credit loss expense.

Tompkins President and CEO, Stephen Romaine, commented, "Our first quarter earnings continued the positive momentum from 2024. Our improved results were driven by growth in net interest income, noninterest income, and increased loan and deposit balances as compared to the first and fourth quarters of 2024. As we begin the year with new economic uncertainty, we believe that we remain well positioned with a strong balance sheet. We are committed to supporting our local communities and driving growth through building quality customer relationships."

SELECTED HIGHLIGHTS FOR THE PERIOD:
•Net interest margin for the first quarter of 2025 was 2.98%, improved from 2.93% for the immediate prior quarter, and 2.73% for the first quarter of 2024.
•Total average cost of funds of 1.84% for the first quarter of 2025 was down 4 basis points compared to the fourth quarter of 2024, and down 2 basis points compared to the same period last year, as a result of funding mix and lower interest rates.


•Provision expense for the first quarter of 2025 was $5.3 million, compared to $1.4 million for fourth quarter of 2024 and $854,000 for the first quarter of 2024. The provision is discussed below under Asset Quality.
•Total fee-based services revenues (revenue from insurance, wealth management, and service charges on deposit accounts and cards services) for the first quarter of 2025 were up $1.2 million or 6.1% compared to the first quarter of 2024.
•Other income for the first quarter of 2025 included a $1.9 million gain on the sale of other real estate owned.
•Total loans at March 31, 2025 were up $46.7 million, or 0.8% compared to December 31, 2024 (3.1% on an annualized basis), and up $426.1 million, or 7.6%, from March 31, 2024.
•Total deposits at March 31, 2025 were $6.8 billion, up $281.7 million, or 4.4%, from December 31, 2024 (17.4% on an annualized basis), and up $303.9 million, or 4.7%, from March 31, 2024.
•Loan to deposit ratio at March 31, 2025 was 89.8%, compared to 93.0% at December 31, 2024, and 87.5% at March 31, 2024.
•Regulatory Tier 1 capital to average assets was 9.31% at March 31, 2025, up compared to 9.27% at December 31, 2024, and 9.08% at March 31, 2024.

NET INTEREST INCOME
Net interest income was $56.7 million for the first quarter of 2025, up $381,000 or 0.7% compared to the fourth quarter of 2024, and up $6.0 million or 11.8% compared to the first quarter of 2024. The increase in net interest income compared to both periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.

Net interest margin was 2.98% for the first quarter of 2025, up 5 basis points when compared to the immediate prior quarter, and up 25 basis points from 2.73% for the first quarter of 2024. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to lower funding costs reflecting a decrease in average deposit and borrowing rates. The increase in net interest margin when compared to the prior year period was mainly a result of higher yields on average interest earning assets and higher average loan balances, and lower funding costs resulting from improved funding mix.

Average loans for the quarter ended March 31, 2025 were up $93.6 million, or 1.6%, from the fourth quarter of 2024, and were up $403.8 million, or 7.2%, 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 March 31, 2025 was 4.69%, a slight increase from 4.67% for the quarter ended December 31, 2024, and up 22 basis points from 4.47% for the quarter ended March 31, 2024.

Average total deposits of $6.6 billion for the first quarter of 2025 were up $38.5 million, or 0.6%, compared to the fourth quarter of 2024, and up $254.2 million, or 4.0%, compared to the first quarter of 2024. The cost of interest-bearing deposits of 2.23% for the first quarter of 2025 was down 8 basis points from 2.31% for the


fourth quarter of 2024, and up 6 basis points from 2.17% for the first quarter of 2024. The ratio of average noninterest bearing deposits to average total deposits for the first quarter of 2025 was 26.9% compared to 28.0% for the fourth quarter of 2025, and 28.8% for the first quarter of 2024. The average cost of interest-bearing liabilities for the first quarter of 2025 of 2.44% represents a decrease of 9 basis points over the fourth quarter of 2024, and a decrease of 7 basis points compared to the same period in 2024.

NONINTEREST INCOME
Noninterest income of $25.0 million for the first quarter of 2025 was up $2.9 million or 13.1% compared to the first quarter of 2024. The increase in quarterly noninterest income when compared to the first quarter of 2024 was mainly due to other income which included a $1.9 million gain on the sale of other real estate owned. Also contributing to the increase in noninterest income were fee based revenues, which included insurance commissions and fees, up $1.3 million or 13.1%; and wealth management fees, up $182,000 or 3.7%; which were partially offset by lower card services income, down $313,000 or 10.6%. Card services income in the first quarter of 2024 included a $255,000 sign-on bonus related to the renewal of a card services contract.

NONINTEREST EXPENSE
Noninterest expense was $50.6 million for the first quarter of 2025, up $750,000 or 1.5% compared to the first quarter of 2024. Contributing to the year-over-year increase was salaries and wages and other employee benefits, up $969,000 or 3.1%. The increase in noninterest expense was partially offset by a decrease of $325,000 or 5.7% in net occupancy expense of premises and furniture and fixture expense.

INCOME TAX EXPENSE
The provision for income tax expense of $6.1 million for an effective rate of 23.7% for the first quarter of 2025, compared to tax expense of $6.0 million for an effective rate of 23.5% for the fourth quarter of 2024, and $5.2 million and an effective rate of 23.5% for the same quarter in 2024.

ASSET QUALITY
The allowance for credit losses represented 1.01% of total loans and leases at March 31, 2025, up from 0.94% at year-end 2024, and from 0.92% reported at March 31, 2024. The increase in the allowance for credit losses coverage ratio over prior quarter end and the end of the prior year first quarter was mainly driven by specific reserves on individually analyzed nonaccrual commercial real estate credits and updates to economic forecasts for unemployment and GDP. These were partially offset by lower qualitative reserves related to asset quality. A specific reserve of $4.2 million was added to one commercial real estate relationship totaling $18.1 million. The specific reserve reflects the estimated decrease in fair value of the collateral based on a new appraisal received at the end of the quarter which is currently under internal review. The property currently generates positive cash flow and a majority of it is tenant occupied. The ratio of the allowance to total nonperforming loans and leases was 85.85% at March 31, 2025, compared to 111.06% at December 31, 2024, and 82.47% at March 31, 2024. The decrease in the ratio compared to the prior quarter end was due to the increase in nonperforming loans and leases, discussed in more detail below.



Provision for credit losses for the first quarter of 2025 was $5.3 million compared to $854,000 for the first quarter of 2024. The increase in provision expense for the first quarter of 2025 was mainly due to the previously discussed specific reserve on one commercial real estate relationship, and updated economic forecasts. Net charge-offs for the three months ended March 31, 2025 were $733,000, compared to $857,000 for the fourth quarter of 2024, and $228,000 for the same period in 2024.

Nonperforming assets of $71.2 million represented 0.87% of total assets at March 31, 2025, up from $65.2 million or 0.80% at December 31, 2024, and $62.7 million or 0.81% at March 31, 2024. The increase in nonperforming assets at March 31, 2025 compared to December 31, 2024 was largely due to the addition of one commercial real estate loan for $17.3 million that was previously included in loans past due 30-89 days being moved into nonperforming loans and leases during the quarter, and was partially offset by the sale of other real estate owned of $14.3 million. The Company believes that the existing collateral securing this $17.3 million loan is sufficient to cover the exposure as of March 31, 2025. At March 31, 2025, nonperforming loans and leases totaled $71.1 million, compared to $50.9 million at December 31, 2024, and $62.7 million at March 31, 2024. Loans past due 30-89 days totaled $12.3 million at March 31, 2025, $28.8 million at December 31, 2024, and $8.0 million at March 31, 2024.

Special Mention and Substandard loans and leases totaled $110.8 million at March 31, 2025, compared to $111.1 million reported at December 31, 2024, and $118.7 million reported at March 31, 2024.

CAPITAL POSITION
Capital ratios at March 31, 2025 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.28% at March 31, 2025, compared to 13.07% at December 31, 2024, and 13.43% at March 31, 2024. The ratio of Tier 1 capital to average assets was 9.31% at March 31, 2025, compared to 9.27% at December 31, 2024, and 9.08% at March 31, 2024.

LIQUIDITY POSITION
The Company's liquidity position at March 31, 2025 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 Bank (FHLB) advances. The Company maintained ready access to liquidity of $1.5 billion, or 18.6% of total assets, at March 31, 2025.



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 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; 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 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), tariffs and trade wars, 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 ofAs of
ASSETS03/31/202512/31/2024
(Audited)
Cash and noninterest bearing balances due from banks$81,382 $53,635 
Interest bearing balances due from banks111,683 80,763 
Cash and Cash Equivalents193,065 134,398 
Available-for-sale debt securities, at fair value (amortized cost of $1,373,444 at March 31, 2025 and $1,367,123 at December 31, 2024)1,259,342 1,231,532 
Held-to-maturity debt securities, at amortized cost (fair value of $274,820 at March 31, 2025 and $267,295 at December 31, 2024)312,477 312,462 
Equity securities, at fair value 783 768 
Total loans and leases, net of unearned income and deferred costs and fees6,066,645 6,019,922 
Less: Allowance for credit losses61,023 56,496 
Net Loans and Leases6,005,622 5,963,426 
Federal Home Loan Bank and other stock29,127 42,255 
Bank premises and equipment, net75,819 76,627 
Corporate owned life insurance77,063 76,448 
Goodwill92,602 92,602 
Other intangible assets, net2,176 2,203 
Accrued interest and other assets151,577 176,359 
Total Assets$8,199,653 $8,109,080 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market3,749,888 3,558,946 
Time1,183,548 1,068,375 
Noninterest bearing1,820,066 1,844,484 
Total Deposits6,753,502 6,471,805 
Federal funds purchased and securities sold under agreements to repurchase122,985 37,036 
Other borrowings493,247 790,247 
Other liabilities88,542 96,548 
Total Liabilities$7,458,276 $7,395,636 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,464,974 at March 31, 2025; and 14,468,013 at December 31, 20241,447 1,447 
Additional paid-in capital299,013 300,073 
Retained earnings547,887 537,157 
Accumulated other comprehensive loss(102,210)(118,492)
Treasury stock, at cost – 96,360 shares at March 31, 2025, and 131,497 shares at December 31, 2024(4,760)(6,741)
Total Equity$741,377 $713,444 
Total Liabilities and Equity$8,199,653 $8,109,080 


TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)Three Months Ended
03/31/202512/31/202403/31/2024
INTEREST AND DIVIDEND INCOME
Loans$78,630 $78,911 $71,599 
Due from banks175 235 154 
Available-for-sale debt securities8,729 8,760 9,611 
Held-to-maturity debt securities1,217 1,222 1,218 
Federal Home Loan Bank and other stock711 894 601 
Total Interest and Dividend Income89,462 $90,022 $83,183 
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more4,507 4,698 4,010 
Other deposits22,143 22,856 20,424 
Federal funds purchased and securities sold under agreements to repurchase41 11 13 
Other borrowings6,109 6,176 8,061 
Total Interest Expense32,800 33,741 32,508 
Net Interest Income56,662 56,281 50,675 
Less: Provision for credit loss expense5,287 1,411 854 
Net Interest Income After Provision for Credit Loss Expense51,375 54,870 49,821 
NONINTEREST INCOME
Insurance commissions and fees11,599 8,471 10,259 
Wealth management fees5,119 4,878 4,937 
Service charges on deposit accounts1,805 1,854 1,796 
Card services income2,626 2,919 2,939 
Other income3,869 2,740 2,220 
Net gain (loss) on securities transactions14 (33)(14)
Total Noninterest Income25,032 20,829 22,137 
NONINTEREST EXPENSE
Salaries and wages24,977 25,870 24,697 
Other employee benefits7,100 7,429 6,411 
Net occupancy expense of premises3,570 2,873 3,557 
Furniture and fixture expense1,787 1,834 2,125 
Amortization of intangible assets84 90 76 
Other operating expense13,089 11,870 12,991 
Total Noninterest Expenses50,607 49,966 49,857 
Income Before Income Tax Expense25,800 25,733 22,101 
Income Tax Expense6,121 6,045 5,198 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation19,679 19,688 16,903 
Less: Net Income Attributable to Noncontrolling Interests0 30 31 
Net Income Attributable to Tompkins Financial Corporation$19,679 19,658 16,872 
Basic Earnings Per Share$1.38 $1.38 $1.19 
Diluted Earnings Per Share$1.37 $1.37 $1.18 



Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter EndedQuarter EndedQuarter Ended
March 31, 2025December 31, 2024March 31, 2024
(dollar amounts in thousands)Average
Balance
(QTD)		InterestAverage
Yield/Rate		Average
Balance
(QTD)		InterestAverage
Yield/Rate		Average
Balance
(QTD)		InterestAverage
Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks$16,424 $175 4.32 %$19,065 $235 4.90 %$12,202 $154 5.08 %
Securities1
U.S. Government securities1,598,785 9,441 2.39 %1,619,973 9,471 2.33 %1,756,122 10,303 2.36 %
State and municipal2
85,893 554 2.62 %86,481 557 2.56 %89,886 570 2.55 %
Other Securities2
3,275 53 6.56 %3,287 55 6.66 %3,278 60 7.32 %
Total securities1,687,953 10,048 2.41 %1,709,741 10,083 2.35 %1,849,286 10,933 2.38 %
FHLBNY and FRB stock31,983 711 9.01 %30,665 894 11.60 %34,613 601 6.99 %
Total loans and leases, net of unearned income2,3
6,025,363 78,835 5.31 %5,931,771 79,126 5.31 %5,621,604 71,779 5.14 %
Total interest-earning assets7,761,723 89,769 4.69 %7,691,242 90,338 4.67 %7,517,705 83,467 4.47 %
Other assets294,855 282,490 283,420 
Total assets$8,056,578 $7,973,732 $7,801,125 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market$3,682,318 $16,093 1.77 %$3,661,006 $17,223 1.87 %$3,546,216 $15,036 1.71 %
Time deposits1,159,039 10,557 3.69 %1,076,300 10,331 3.82 %988,891 9,398 3.82 %
Total interest-bearing deposits4,841,357 26,650 2.23 %4,737,306 27,554 2.31 %4,535,107 24,434 2.17 %
Federal funds purchased & securities sold under agreements to repurchase47,653 41 0.35 %39,519 11 0.11 %48,779 13 0.10 %
Other borrowings561,983 6,109 4.41 %534,219 6,176 4.60 %622,951 8,061 5.21 %
Total interest-bearing liabilities5,450,993 32,800 2.44 %5,311,044 33,741 2.53 %5,206,836 32,508 2.51 %
Noninterest bearing deposits1,779,197 1,844,772 1,831,244 
Accrued expenses and other liabilities98,278 101,370 96,292 
Total liabilities7,328,468 7,257,186 7,134,373 
Tompkins Financial Corporation Shareholders’ equity728,110 715,299 665,333 
Noncontrolling interest0 1,247 1,419 
Total equity728,110 716,546 666,752 
Total liabilities and equity$8,056,578 $7,973,732 $7,801,125 
Interest rate spread2.25 %2.15 %1.95 %
Tax-equivalent net interest income/margin on earning assets56,969 2.98 %56,597 2.93 %50,959 2.73 %
Tax-equivalent adjustment(307)(316)(284)
Net interest income$56,662 $56,281 $50,675 





Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-EndedYear-Ended
Period End Balance SheetMar-25Dec-24Sep-24Jun-24Mar-24Dec-24
Securities$1,572,602 $1,544,762 $1,622,526 $1,630,654 $1,679,542 $1,544,762 
Total Loans6,066,645 6,019,922 5,881,261 5,761,864 5,640,524 6,019,922 
Allowance for credit losses61,023 56,496 55,384 53,059 51,704 56,496 
Total assets8,199,653 8,109,080 8,006,427 7,869,522 7,778,034 8,109,080 
Total deposits6,753,502 6,471,805 6,577,896 6,285,896 6,449,616 6,471,805 
Brokered deposits99,763 0 20,383 22,808 55,010 0 
Federal funds purchased and securities sold under agreements to repurchase122,985 37,036 67,506 35,989 43,681 37,036 
Other borrowings493,247 790,247 539,327 773,627 522,600 790,247 
Total common equity741,377 713,444 719,855 674,630 667,906 713,444 
Total equity741,377 713,444 721,348 676,093 669,338 713,444 

Average Balance Sheet
Average earning assets$7,761,723 $7,691,242 $7,638,314 $7,547,689 $7,517,705 $7,599,098 
Average assets8,056,578 7,973,732 7,914,924 7,810,061 7,801,125 7,875,339 
Average interest-bearing liabilities5,450,993 5,311,044 5,277,988 5,215,003 5,206,836 5,252,947 
Average equity728,110 716,546 696,532 662,969 666,752 685,814 
Share data
Weighted average shares outstanding (basic)14,246,140 14,230,297 14,215,607 14,214,574 14,211,910 14,218,106 
Weighted average shares outstanding (diluted)14,319,440 14,312,497 14,283,255 14,239,626 14,238,357 14,268,443 
Period-end shares outstanding14,433,873 14,436,363 14,394,255 14,395,204 14,405,019 14,436,363 
Common equity book value per share$51.36 $49.42 $50.01 $46.86 $46.37 $49.42 
Tangible book value per share (Non-GAAP)**$44.88 $42.93 $43.50 $40.35 $39.85 $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$56,662 $56,281 $53,193 $50,953 $50,675 $211,102 
Provision for credit loss expense5,287 1,411 2,174 2,172 854 6,611 
Noninterest income25,032 20,829 23,385 21,776 22,137 88,127 
Noninterest expense50,607 49,966 49,877 49,942 49,857 199,642 
Income tax expense6,121 6,045 5,858 4,902 5,198 22,003 
Net income attributable to Tompkins Financial Corporation19,679 19,658 18,638 15,682 16,872 70,850 
Noncontrolling interests0 30 31 31 31 123 
Basic earnings per share4
1.38 1.38 1.31 1.10 1.19 4.98 
Diluted earnings per share4
1.37 1.37 1.30 1.10 1.18 4.97 
Nonperforming Assets
Nonaccrual loans and leases$70,891 $50,548 $62,381 $62,253 $62,544 $50,548 
Loans and leases 90 days past due and accruing187 323 193 215 151 323 
Total nonperforming loans and leases71,078 50,871 62,574 62,468 62,695 50,871 
OREO81 14,314 81 80 0 14,314 
Total nonperforming assets$71,159 $65,185 $62,655 $62,548 $62,695 $65,185 


Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-EndedYear-Ended
Delinquency - Total loan and lease portfolioMar-25Dec-24Sep-24Jun-24Mar-24Dec-24
Loans and leases 30-89 days past due and
accruing$12,285 $28,828 $7,031 $5,286 $8,015 $28,828 
Loans and leases 90 days past due and accruing187 323 193 215 151 323 
Total loans and leases past due and accruing12,472 29,151 7,224 5,501 8,166 29,151 

Allowance for Credit Losses
Balance at beginning of period$56,496 $55,384 $53,059 $51,704 $51,584 $51,584 
Provision for credit losses5,260 1,969 3,237 1,864 348 $7,418 
Net loan and lease charge-offs (recoveries) 733 857 912 509 228 $2,506 
Allowance for credit losses at end of period$61,023 $56,496 $55,384 $53,059 $51,704 $56,496 
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period$1,463 $2,021 $3,084 $2,776 $2,270 $2,270 
Provision (credit) for credit losses27 (558)(1,063)308 506 $(807)
Allowance for credit losses at end of period$1,490 $1,463 $2,021 $3,084 $2,776 $1,463 
Loan Classification - Total Portfolio
Special Mention$34,790 $36,923 $58,758 $48,712 $46,302 $36,923 
Substandard75,980 74,163 67,261 67,509 72,412 74,163 

Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases1.17 %0.85 %1.06 %1.08 %1.11 %0.85 %
Nonperforming assets/total assets0.87 %0.80 %0.78 %0.79 %0.81 %0.80 %
Allowance for credit losses/total loans and leases1.01 %0.94 %0.94 %0.92 %0.92 %0.94 %
Allowance/nonperforming loans and leases85.85 %111.06 %88.51 %84.94 %82.47 %111.06 %
Net loan and lease losses (recoveries) annualized/total average loans and leases0.05 %0.06 %0.06 %0.04 %0.02 %0.04 %
Capital Adequacy
Tier 1 Capital (to average assets)9.31 %9.27 %9.19 %9.15 %9.08 %9.27 %
Total Capital (to risk-weighted assets)13.28 %13.07 %13.21 %13.26 %13.43 %13.07 %
Profitability (period-end)
Return on average assets *0.99 %0.98 %0.94 %0.81 %0.87 %0.90 %
Return on average equity *10.96 %10.91 %10.65 %9.51 %10.18 %10.33 %
Net interest margin (TE) *2.98 %2.93 %2.79 %2.73 %2.73 %2.79 %
Average yield on interest-earning assets*4.69 %4.67 %4.66 %4.56 %4.47 %4.59 %
Average cost of deposits*1.63 %1.67 %1.67 %1.61 %1.54 %1.62 %
Average cost of funds*1.84 %1.88 %2.01 %1.96 %1.86 %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 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-EndedYear-Ended
Mar-25Dec-24Sep-24Jun-24Mar-24Dec-24
Common equity book value per share (GAAP)$51.36 $49.42 $50.01 $46.86 $46.37 $49.42 
Total common equity$741,377 $713,444 $719,855 $674,630 $667,906 $713,444 
Less: Goodwill and intangibles93,58693,67093,76093,84793,92693,670 
Tangible common equity (Non-GAAP)647,791 619,774 626,095 580,783 573,980 619,774 
Ending shares outstanding14,433,873 14,436,363 14,394,255 14,395,204 14,405,019 14,436,363 
Tangible book value per share (Non-GAAP)$44.88 $42.93 $43.50 $40.35 $39.85 $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 2025 and 2024 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, 2024.
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.