Tompkins Financial Corporation (NYSE:TMP)

Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $1.30 for the third quarter of 2024, up 18.2% from the immediate prior quarter, and up 155.3% from the diluted earnings (loss) per share of $(2.35) reported in the third quarter of 2023. Net income for the third quarter of 2024 was $18.6 million, up $3.0 million or 18.9% compared to the second quarter of 2024, and up $52.0 million, or 155.9%, when compared to the net loss of $(33.4) million reported for the third quarter of 2023. The increase in diluted earnings per share and net income compared to the results for the third quarter of 2023 largely reflects the Company's sale of $429.6 million of available-for-sale securities, which resulted in a pre-tax loss of $62.9 million (or $3.34 per share) in the third quarter of 2023.

For the nine months ended September 30, 2024, diluted earnings (loss) per share were $3.59, up from $(0.39) for the nine months ended September 30, 2023. Year-to-date net income (loss) was $51.2 million for the nine months ended September 30, 2024, up $56.7 million when compared to $(5.5) million for the prior year period. The growth in year-to-date diluted earnings per share and net income was mainly due the Company's sale of $510.5 million of available-for-sale securities which resulted in a pre-tax loss of $70.0 million (or $3.69 per share) for the nine months ended September 30, 2023.

Tompkins President and CEO, Stephen Romaine, commented, "Our third quarter net income was up over 18% as compared to the second quarter, driven by a strengthening net interest margin and growth across our business. For the third quarter our net interest margin expanded 6 basis points, loan balances grew over 8% annualized and our fee-based services continue to provide diversified growing revenue as total noninterest income represented 31% of total revenue. Year-to-date, our operating results were further supported by lower expenses, as noninterest expenses were down 1.5% as compared to prior year. As we are seeing improving profitability we believe that we remain well positioned to continue to drive growth through quality customer relationships supported by our strong capital and liquidity."

SELECTED HIGHLIGHTS FOR THE PERIOD:

Net interest margin for the third quarter of 2024 was 2.79%, improved from the immediate prior quarter of 2.73%, and the 2.75% reported for the same period of 2023.
Total average cost of funds for the third quarter of 2024 was up 5 basis points compared to the second quarter of 2024, down from a 10 basis point increase from the first quarter of 2024 to the second quarter of 2024.
Total fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the third quarter of 2024 were up $648,000 or 3.2% compared to the third quarter of 2023.
Total noninterest expenses for the third quarter of 2024 were in line with the second quarter of 2024 and the third quarter of 2023.
Total loans at September 30, 2024 were up $119.4 million, or 2.1% (8.2% on an annualized basis) compared to June 30, 2024, and up $446.4 million, or 8.2%, from September 30, 2023.
Total deposits at September 30, 2024 were $6.6 billion, up $292.0 million, or 4.7%, from June 30, 2024, and down $45.5 million, or 0.7%, from September 30, 2023.
Loan to deposit ratio at September 30, 2024 was 89.4%, compared to 91.7% at June 30, 2024, and 82.1% at September 30, 2023.
Regulatory Tier 1 capital to average assets was 9.19% at September 30, 2024, up compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.

NET INTEREST INCOME

Net interest income was $53.2 million for the third quarter of 2024, up $2.2 million or 4.4% compared to the second quarter of 2024, and $2.2 million or 4.3% compared to the third quarter of 2023. The increase in net interest income compared to both the second quarter of 2024, and third quarter of 2023, resulted primarily from the increase in average loan balances and the average yield on those loan balances, partially offset by the increase in cost of deposits.

For the nine months ended September 30, 2024, net interest income was $154.8 million, down $2.3 million or 1.5% when compared to the same period in 2023.

Net interest margin was 2.79% for the third quarter of 2024, up 6 basis points when compared to the immediate prior quarter, and up 4 basis points from the 2.75% reported for the third quarter of 2023. The increase in net interest margin, when compared to the prior periods, was mainly driven by higher yields on interest earning assets and higher average loan balances, and was partially offset by higher funding costs.

Average loans for the quarter ended September 30, 2024 were up $143.4 million, or 2.5%, from the second quarter of 2024, and were up $445.7 million, or 8.3%, compared to the same period prior year. 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 September 30, 2024 was 4.66%, which was up from 4.56% for the quarter ended June 30, 2024, and up from 4.06% for the quarter ended September 30, 2023.

Average total deposits of $6.4 billion for the third quarter of 2024 were up $41.4 million, or 0.7%, compared to the second quarter of 2024, and down $67.0 million or 1.0% compared to the same period in 2023. The cost of interest-bearing deposits of 2.35% for the third quarter of 2024 was up 8 basis points from 2.27% for the second quarter of 2024, and up 61 basis points from 1.74% for the third quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2024 was 28.9% compared to 29.1% for the second quarter of 2024, and 31.0% for the third quarter of 2023. The average cost of interest-bearing liabilities for the third quarter of 2024 of 2.71% represents an increase of 7 basis points over the second quarter of 2024, and an increase of 73 basis points over the same period in 2023.

NONINTEREST INCOME

Noninterest income of $23.4 million for the third quarter of 2024 was up $65.0 million or 156.2% compared to the same period in 2023. Year-to-date noninterest income of $67.3 million was up $75.9 million or 881.7% compared to the same period in 2023. The increase in quarterly and year-to-date noninterest income compared to the same periods in 2023 was mainly due to the $62.9 million and $70.0 million, respectively, pre-tax loss on the sale of available-for-sale securities in 2023 as discussed above. Other income was up $1.3 million for the quarter ended September 30, 2024 compared to the same period in 2023, and included increases in gains on loan sales, derivative swap fee income, and BOLI income. Also included in the increase for the third quarter of 2024 over the same period prior year were fee-based revenues which included wealth management fees, up $583,000, service charges on deposit accounts, up $118,000, card services income, up $61,000.

NONINTEREST EXPENSE

Noninterest expense was $49.9 million for the third quarter of 2024, which was in line with the third quarter of 2023. Year-to-date noninterest expense for the period ended September 30, 2024 was $149.7 million, a decrease of $2.3 million or 1.5% compared to the $152.0 million reported for the same period in 2023. The year-over-year decrease was mainly driven by lower other expenses (legal fees, marketing, professional fees, retirement plan expense, and travel and meeting expense), partially offset by higher FDIC insurance expense.

INCOME TAX EXPENSE

The provision for income tax expense was $5.9 million for an effective rate of 23.9% for the third quarter of 2024, compared to tax benefit of $8.3 million and an effective rate of 20.0% for the same quarter in 2023. For the nine months ended September 30, 2024, the provision for income tax expense was $16.0 million and the effective tax rate was 23.7% compared to a tax benefit of $619,000 and an effective tax rate of 10.3% for the same period in 2023. Lower tax expense for both the quarter and year-to-date periods in 2023 was mainly a result of lower income associated with the loss on the sale of securities described above.

ASSET QUALITY

The allowance for credit losses represented 0.94% of total loans and leases at September 30, 2024, up from 0.92% reported at both June 30, 2024 and December 31, 2023. The increase in the allowance for credit losses coverage ratio was driven primarily by updated economic forecasts for unemployment and gross domestic product for the quarter, as well as model assumption updates for prepayment speeds, curtailment rates, and recovery lag. 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 88.51% at September 30, 2024, compared to 84.94% at June 30, 2024, and 156.96% at September 30, 2023. The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below.

Provision for credit losses for the third quarter of 2024 was $2.2 million compared to $1.2 million for the same period in 2023. Provision for credit losses for the nine months ended September 30, 2024 was $5.2 million compared to $2.6 million for the nine months ended September 30, 2023. The increase in provision expense for the quarter and year-to-date periods compared to the same periods in 2023 was mainly driven by loan growth which was up $119.4 million or 2.1%, and $446.4 million or 8.2%, respectively, and the increase in net charge-offs in 2024 over 2023. Net charge-offs for three and nine months ended September 30, 2024 were $912,000 and $1.6 million, respectively, compared to net charge-offs of $177,000 and net recoveries of $1.1 million for the same periods in 2023.

Nonperforming assets represented 0.78% of total assets at September 30, 2024, down slightly from 0.79% reported at June 30, 2024, and up compared to 0.41% at September 30, 2023. At September 30, 2024, nonperforming loans and leases totaled $62.6 million, compared to $62.5 million at June 30, 2024 and $31.4 million at September 30, 2023. The increase in nonperforming loans and leases at September 30, 2024 compared to September 30, 2023 was mainly due to the addition in the fourth quarter of 2023 of one relationship totaling approximately $33.3 million with two commercial real estate properties included in the office space and mixed use properties portion of the commercial real estate portfolio. The Company believes that the existing collateral securing the loans was sufficient to cover the exposure as of September 30, 2024.

Special Mention and Substandard loans and leases totaled $126.0 million at September 30, 2024, compared to $116.2 million reported at June 30, 2024, and $122.9 million reported at September 30, 2023.

CAPITAL POSITION

Capital ratios at September 30, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.21% at September 30, 2024, compared to 13.26% at June 30, 2024, and 13.46% at September 30, 2023. The ratio of Tier 1 capital to average assets was 9.19% at September 30, 2024, compared to 9.15% at June 30, 2024, and 9.01% at September 30, 2023.

LIQUIDITY POSITION

The Company's liquidity position at September 30, 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 $1.4 billion, or 18.0% of total assets at September 30, 2024. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At September 30, 2024 the Company had an available borrowing capacity at the FHLB of $769.5 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At September 30, 2024 the available borrowing capacity with the Federal Reserve Bank was $142.0 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at September 30, 2024, the Company maintained $508.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.

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: 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; 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 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	9/30/2024			12/31/2023
				(Audited)

Cash and noninterest bearing balances due from banks	$	110,375		$	67,212
Interest bearing balances due from banks		21,945			12,330
Cash and Cash Equivalents		132,320			79,542

Available-for-sale debt securities, at fair value (amortized cost of $1,410,405 at September 30, 2024 and $1,548,482 at December 31, 2023)		1,309,279			1,416,650
Held-to-maturity debt securities, at amortized cost (fair value of $276,599 at September 30, 2024 and $267,455 at December 31, 2023)		312,446			312,401
Equity securities, at fair value		801			787
Total loans and leases, net of unearned income and deferred costs and fees		5,881,261			5,605,935
Less: Allowance for credit losses		55,384			51,584
Net Loans and Leases		5,825,877			5,554,351

Federal Home Loan Bank and other stock		30,936			33,719
Bank premises and equipment, net		77,603			79,687
Corporate owned life insurance		75,966			67,884
Goodwill		92,602			92,602
Other intangible assets, net		2,238			2,327
Accrued interest and other assets		146,359			179,799
Total Assets	$	8,006,427		$	7,819,749
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		3,655,041			3,484,878
Time		1,042,007			998,013
Noninterest bearing		1,880,848			1,916,956
Total Deposits		6,577,896			6,399,847

Federal funds purchased and securities sold under agreements to repurchase		67,506			50,996
Other borrowings		539,327			602,100
Other liabilities		100,350			96,872
Total Liabilities	$	7,285,079		$	7,149,815
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,426,922 at September 30, 2024; and 14,441,830 at December 31, 2023		1,443			1,444
Additional paid-in capital		299,741			297,183
Retained earnings		526,423			501,510
Accumulated other comprehensive loss		(101,200	)		(125,005	)
Treasury stock, at cost – 129,317 shares at September 30, 2024, and 132,097 shares at December 31, 2023		(6,552	)		(6,610	)
Total Tompkins Financial Corporation Shareholders' Equity		719,855			668,522
Noncontrolling interests		1,493			1,412
Total Equity	$	721,348		$	669,934
Total Liabilities and Equity	$	8,006,427		$	7,819,749

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)	Three Months Ended								Nine Months Ended
	9/30/2024		06/30/2024			9/30/2023			9/30/2024		9/30/2023
INTEREST AND DIVIDEND INCOME
Loans	$	77,814	$	73,646		$	67,030		$	223,059	$	191,399
Due from banks		168		184			125			506		447
Available-for-sale debt securities		9,037		9,371			6,599			28,019		19,960
Held-to-maturity debt securities		1,222		1,219			1,221			3,659		3,654
Federal Home Loan Bank and other stock		888		820			490			2,309		1,113
Total Interest and Dividend Income		89,129	$	85,240		$	75,465		$	257,552	$	216,573
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		4,158		4,048			3,158			12,216		7,472
Other deposits		22,553		21,236			16,348			64,213		39,861
Federal funds purchased and securities sold under agreements to repurchase		11		11			15			35		44
Other borrowings		9,214		8,992			4,931			26,267		12,041
Total Interest Expense		35,936		34,287			24,452			102,731		59,418
Net Interest Income		53,193		50,953			51,013			154,821		157,155
Less: Provision for credit loss expense		2,174		2,172			1,150			5,200		2,578
Net Interest Income After Provision for Credit Loss Expense		51,019		48,781			49,863			149,621		154,577
NONINTEREST INCOME
Insurance commissions and fees		11,283		9,087			11,397			30,629		29,578
Wealth management fees		4,925		4,849			4,342			14,711		13,529
Service charges on deposit accounts		1,872		1,766			1,754			5,434		5,140
Card services income		2,921		3,278			2,860			9,138		8,629
Other income		2,299		2,802			990			7,321		4,534
Net gain (loss) on securities transactions		85		(6	)		(62,967	)		65		(70,019	)
Total Noninterest Income		23,385		21,776			(41,624	)		67,298		(8,609	)
NONINTEREST EXPENSE
Salaries and wages		25,664		24,919			23,811			75,280		73,660
Other employee benefits		6,276		6,545			7,319			19,232		20,707
Net occupancy expense of premises		3,065		3,139			3,108			9,761		9,734
Furniture and fixture expense		1,797		1,910			2,079			5,832		6,238
Amortization of intangible assets		86		80			83			242		250
Other operating expense		12,989		13,349			13,466			39,329		41,403
Total Noninterest Expenses		49,877		49,942			49,866			149,676		151,992
Income/(Loss) Before Income Tax Expense/(Benefit)		24,527		20,615			(41,627	)		67,243		(6,024	)
Income Tax Expense/(Benefit)		5,858		4,902			(8,304	)		15,958		(619	)
Net Income/(Loss) Attributable to Noncontrolling Interests and Tompkins Financial Corporation		18,669		15,713			(33,323	)		51,285		(5,405	)
Less: Net Income Attributable to Noncontrolling Interests		31		31			31			93		93
Net Income/(Loss) Attributable to Tompkins Financial Corporation	$	18,638		15,682			(33,354	)		51,192		(5,498	)
Basic Earnings (Loss) Per Share	$	1.31	$	1.10		$	(2.35	)	$	3.60	$	(0.39	)
Diluted Earnings (Loss) Per Share	$	1.30	$	1.10		$	(2.35	)	$	3.59	$	(0.39	)

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended							Quarter Ended
	September 30, 2024							June 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	$	13,189	$	168		5.07	%	$	11,707	$	184		6.33	%
Securities (1)
U.S. Government securities		1,664,611		9,740		2.33	%		1,717,975		10,067		2.36	%
State and municipal (2)		87,799		560		2.54	%		89,518		566		2.55	%
Other securities		3,282		60		7.27	%		3,260		59		7.32	%
Total securities		1,755,692		10,360		2.35	%		1,810,753		10,692		2.38	%
FHLBNY and FRB stock		38,534		888		9.17	%		37,681		820		8.76	%
Total loans and leases, net of unearned income (2)(3)		5,830,899		78,040		5.32	%		5,687,548		73,839		5.22	%
Total interest-earning assets		7,638,314		89,456		4.66	%		7,547,689		85,535		4.56	%
Other assets		276,610							262,372
Total assets	$	7,914,924						$	7,810,061
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,509,116	$	16,635		1.89	%	$	3,498,746	$	15,754		1.81	%
Time deposits		1,016,949		10,076		3.94	%		987,348		9,530		3.88	%
Total interest-bearing deposits		4,526,065		26,711		2.35	%		4,486,094		25,284		2.27	%
Federal funds purchased & securities sold under agreements to repurchase		42,449		11		0.10	%		40,298		11		0.11	%
Other borrowings		709,474		9,214		5.17	%		688,611		8,992		5.25	%
Total interest-bearing liabilities		5,277,988		35,936		2.71	%		5,215,003		34,287		2.64	%
Noninterest bearing deposits		1,838,725							1,837,325
Accrued expenses and other liabilities		101,679							94,764
Total liabilities		7,218,392							7,147,092
Tompkins Financial Corporation Shareholders' equity		695,057							661,523
Noncontrolling interest		1,475							1,446
Total equity		696,532							662,969

Total liabilities and equity	$	7,914,924						$	7,810,061
Interest rate spread						1.95	%						1.91	%
Net interest income (TE)/margin on earning assets				53,520		2.79	%				51,248		2.73	%

Tax Equivalent Adjustment				(327	)						(295	)
Net interest income			$	53,193						$	50,953

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended							Quarter Ended
	September 30, 2024							September 30, 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	$	13,189	$	168		5.07	%	$	11,585	$	125		4.29	%
Securities (1)
U.S. Government securities		1,664,611		9,740		2.33	%		1,890,659		7,294		1.53	%
State and municipal (2)		87,799		560		2.54	%		90,212		576		2.53	%
Other securities		3,282		60		7.27	%		3,272		59		7.18	%
Total securities		1,755,692		10,360		2.35	%		1,984,143		7,929		1.59	%
FHLBNY and FRB stock		38,534		888		9.17	%		24,511		490		7.94	%
Total loans and leases, net of unearned income (2)(3)		5,830,899		78,040		5.32	%		5,385,195		67,199		4.95	%
Total interest-earning assets		7,638,314		89,456		4.66	%		7,405,434		75,743		4.06	%
Other assets		276,610							224,442
Total assets	$	7,914,924						$	7,629,876
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,509,116	$	16,635		1.89	%	$	3,615,395	$	12,674		1.39	%
Time deposits		1,016,949		10,076		3.94	%		826,082		6,832		3.28	%
Total interest-bearing deposits		4,526,065		26,711		2.35	%		4,441,477		19,506		1.74	%
Federal funds purchased & securities sold under agreements to repurchase		42,449		11		0.10	%		57,624		15		0.10	%
Other borrowings		709,474		9,214		5.17	%		403,829		4,931		4.84	%
Total interest-bearing liabilities		5,277,988		35,936		2.71	%		4,902,930		24,452		1.98	%
Noninterest bearing deposits		1,838,725							1,990,320
Accrued expenses and other liabilities		101,679							101,646
Total liabilities		7,218,392							6,994,896
Tompkins Financial Corporation Shareholders' equity		695,057							633,494
Noncontrolling interest		1,475							1,487
Total equity		696,532							634,980

Total liabilities and equity	$	7,914,924						$	7,629,876
Interest rate spread						1.95	%						2.08	%
Net interest income (TE)/margin on earning assets				53,520		2.79	%				51,291		2.75	%

Tax Equivalent Adjustment				(327	)						(278	)
Net interest income			$	53,193						$	51,013

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Year to Date Period Ended							Year to Date Period Ended
	September 30, 2024							September 30, 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	$	12,369	$	506		5.46	%	$	12,630	$	447		4.73	%
Securities (1)
U.S. Government securities		1,712,727		30,109		2.35	%		1,965,039		22,022		1.50	%
State and municipal (2)		89,063		1,697		2.55	%		91,858		1,764		2.57	%
Other securities		3,273		179		7.31	%		3,281		169		6.87	%
Total securities		1,805,063		31,985		2.37	%		2,060,178		23,955		1.55	%
FHLBNY and FRB stock		36,948		2,309		8.35	%		21,519		1,113		6.93	%
Total loans and leases, net of unearned income (2)(3)		5,713,780		223,656		5.23	%		5,314,221		191,946		4.83	%
Total interest-earning assets		7,568,160		258,456		4.56	%		7,408,548		217,461		3.92	%
Other assets		274,143							224,594
Total assets	$	7,842,303						$	7,633,142
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	3,517,993	$	47,424		1.80	%	$	3,715,931	$	31,905		1.15	%
Time deposits		997,800		29,005		3.88	%		749,198		15,428		2.75	%
Total interest-bearing deposits		4,515,793		76,429		2.26	%		4,465,129		47,333		1.42	%
Federal funds purchased & securities sold under agreements to repurchase		43,837		35		0.11	%		57,077		44		0.10	%
Other borrowings		673,809		26,267		5.21	%		351,600		12,041		4.58	%
Total interest-bearing liabilities		5,233,439		102,731		2.62	%		4,873,806		59,418		1.63	%
Noninterest bearing deposits		1,835,776							2,019,917
Accrued expenses and other liabilities		97,593							100,491
Total liabilities		7,166,808							6,994,214
Tompkins Financial Corporation Shareholders' equity		674,048							637,472
Noncontrolling interest		1,447							1,456
Total equity		675,495							638,928

Total liabilities and equity	$	7,842,303						$	7,633,142
Interest rate spread						1.94	%						2.29	%
Net interest income (TE)/margin on earning assets				155,725		2.75	%				158,043		2.85	%

Tax Equivalent Adjustment				(904	)						(888	)
Net interest income			$	154,821						$	157,155

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)
	Quarter-Ended										Year-Ended
Period End Balance Sheet	Sep-24		Jun-24		Mar-24		Dec-23		Sep-23		Dec-23
Securities	$	1,622,526	$	1,630,654	$	1,679,542	$	1,729,838	$	1,701,636	$	1,729,838
Total Loans		5,881,261		5,761,864		5,640,524		5,605,935		5,434,860		5,605,935
Allowance for credit losses		55,384		53,059		51,704		51,584		49,336		51,584
Total assets		8,006,427		7,869,522		7,778,034		7,819,749		7,691,162		7,819,749
Total deposits		6,577,896		6,285,896		6,449,616		6,399,847		6,623,436		6,399,847
Federal funds purchased and securities sold under agreements to repurchase		67,506		35,989		43,681		50,996		56,120		50,996
Other borrowings		539,327		773,627		522,600		602,100		296,800		602,100
Total common equity		719,855		674,630		667,906		668,522		610,851		668,522
Total equity		721,348		676,093		669,338		669,934		612,356		669,934

Average Balance Sheet
Average earning assets	$	7,638,314	$	7,547,689	$	7,517,705	$	7,407,976	$	7,405,434	$	7,408,404
Average assets		7,914,924		7,810,061		7,801,125		7,666,982		7,629,876		7,641,672
Average interest-bearing liabilities		5,277,988		5,215,003		5,206,836		5,020,544		4,902,930		4,910,792
Average equity		696,532		662,969		666,752		622,280		634,980		634,732

Share data
Weighted average shares outstanding (basic)		14,215,607		14,214,574		14,211,910		14,194,503		14,185,763		14,254,661
Weighted average shares outstanding (diluted)		14,283,255		14,239,626		14,238,357		14,246,024		14,224,748		14,301,221
Period-end shares outstanding		14,394,255		14,395,204		14,405,019		14,405,920		14,350,177		14,405,920
Common equity book value per share	$	50.01	$	46.86	$	46.37	$	46.41	$	42.57	$	46.41
Tangible book value per share (Non-GAAP)**	$	43.50	$	40.35	$	39.85	$	39.88	$	36.01	$	39.88
**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	$	53,193	$	50,953	$	50,675	$	52,359	$	51,013		$	209,514
Provision for credit loss expense (5)		2,174		2,172		854		1,761		1,150			4,339
Noninterest income		23,385		21,776		22,137		18,850		(41,624	)		10,241
Noninterest expense (5)		49,877		49,942		49,857		51,300		49,866			203,292
Income tax expense/(benefit)		5,858		4,902		5,198		3,114		(8,304	)		2,495
Net income/(loss) attributable to Tompkins Financial Corporation		18,638		15,682		16,872		15,003		(33,354	)		9,505
Noncontrolling interests		31		31		31		31		31			124
Basic earnings (loss) per share (4)		1.31		1.10		1.19		1.06		(2.35	)		0.66
Diluted earnings (loss) per share (4)		1.30		1.10		1.18		1.05		(2.35	)		0.66

Nonperforming Assets
Nonaccrual loans and leases	$	62,381	$	62,253	$	62,544	$	62,165	$	31,381	$	62,165
Loans and leases 90 days past due and accruing		193		215		151		101		52		101
Total nonperforming loans and leases		62,574		62,468		62,695		62,266		31,433		62,266
OREO		81		80		0		131		0		131
Total nonperforming assets	$	62,655	$	62,548	$	62,695	$	62,397	$	31,433	$	62,397

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

	Quarter-Ended										Year-Ended
Delinquency - Total loan and lease portfolio	Sep-24		Jun-24		Mar-24		Dec-23		Sep-23		Dec-23
Loans and leases 30-89 days past due and accruing	$	7,031	$	5,286	$	8,015	$	4,210	$	40,893	$	4,210
Loans and leases 90 days past due and accruing		193		215		151		101		52		101
Total loans and leases past due and accruing		7,224		5,501		8,166		4,311		40,945		4,311

Allowance for Credit Losses
Balance at beginning of period	$	53,059		$	51,704	$	51,584	$	49,336		$	48,545	$	45,934
Impact of adopting ASC 326		0			0		0		0			0		64
Provision for credit losses		3,237			1,864		348		2,658			968	$	4,865
Net loan and lease charge-offs (recoveries)		912			509		228		410			177	$	(721	)
Allowance for credit losses at end of period	$	55,384		$	53,059	$	51,704	$	51,584		$	49,336	$	51,584

Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period	$	3,084		$	2,776	$	2,270	$	3,167		$	2,985	$	2,796
Provision (credit) for credit losses		(1,063	)		308		506		(897	)		182	$	(526	)
Allowance for credit losses at end of period	$	2,021		$	3,084	$	2,776	$	2,270		$	3,167	$	2,270

Loan Classification - Total Portfolio
Special Mention	$	58,758	$	48,712	$	46,302	$	50,368	$	65,993	$	50,368
Substandard		67,261		67,509		72,412		72,717		56,947		72,717

Ratio Analysis

Credit Quality
Nonperforming loans and leases/total loans and leases	1.06	%	1.08	%	1.11	%	1.11	%	0.58	%	1.11	%
Nonperforming assets/total assets	0.78	%	0.79	%	0.81	%	0.80	%	0.41	%	0.80	%
Allowance for credit losses/total loans and leases	0.94	%	0.92	%	0.92	%	0.92	%	0.91	%	0.92	%
Allowance/nonperforming loans and leases	88.51	%	84.94	%	82.47	%	82.84	%	156.96	%	82.84	%
Net loan and lease losses (recoveries) annualized/total average loans and leases	0.06	%	0.04	%	0.02	%	0.03	%	0.01	%	(0.01	)%

Capital Adequacy
Tier 1 Capital (to average assets)	9.19	%	9.15	%	9.08	%	9.08	%	9.01	%	9.08	%
Total Capital (to risk-weighted assets)	13.21	%	13.26	%	13.43	%	13.36	%	13.46	%	13.36	%

Profitability (period-end)
Return on average assets *	0.94	%	0.81	%	0.87	%	0.78	%	(1.73	)%	0.12	%
Return on average equity *	10.65	%	9.51	%	10.18	%	9.56	%	(20.84	)%	1.50	%
Net interest margin (TE) *	2.79	%	2.73	%	2.73	%	2.82	%	2.75	%	2.84	%
Average yield on interest-earning assets*	4.66	%	4.56	%	4.47	%	4.34	%	4.06	%	4.03	%
Average cost of deposits*	1.67	%	1.61	%	1.54	%	1.43	%	1.20	%	1.09	%
Average cost of funds*	2.01	%	1.96	%	1.86	%	1.62	%	1.41	%	1.27	%
* 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
	Sep-24		Jun-24		Mar-24		Dec-23		Sep-23		Dec-23
Common equity book value per share (GAAP)	$	50.01	$	46.86	$	46.37	$	46.41	$	42.57	$	46.41
Total common equity	$	719,855	$	674,630	$	667,906	$	668,522	$	610,851	$	668,522
Less: Goodwill and intangibles		93,760		93,847		93,926		94,003		94,086		94,003
Tangible common equity (Non-GAAP)		626,095		580,783		573,980		574,519		516,765		574,519
Ending shares outstanding		14,394,255		14,395,204		14,405,019		14,405,920		14,350,177		14,405,920
Tangible book value per share (Non-GAAP)	$	43.50	$	40.35	$	39.85	$	39.88	$	36.01	$	39.88

(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.

(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.

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