Tompkins Financial Corporation Announces Stronger First Quarter Financial Performance

Tompkins Financial Corporation Announces Stronger First Quarter Financial Performance
Tompkins Financial Corporation Posts Strong First Quarter Results, Driven by Higher Net Interest Income and Solid Loan Growth

Tompkins Financial Corporation (“Tompkins” or the “Company”) announced its financial results for the first quarter of 2025, reporting diluted earnings per share of $1.37. This figure remained steady compared to the fourth quarter of 2024 and marked a 16.1% increase from $1.18 in the first quarter of the prior year.

Net income for the quarter totaled $19.7 million, matching the previous quarter’s performance and showing a 16.6% year-over-year improvement from $16.9 million. The growth was primarily fueled by higher net interest income, bolstered by greater interest earnings on loans, stabilized funding costs, and stronger fee-based and other income streams. These gains were partially offset by a higher provision for credit losses.

Commenting on the results, Stephen Romaine, President and CEO of Tompkins, stated:

“Our first quarter performance builds on the momentum we established in 2024. Growth in net interest income, noninterest income, and rising loan and deposit balances contributed to our improved earnings. Even as we face new economic uncertainties, Tompkins remains well-positioned with a strong balance sheet. We are committed to supporting our communities and driving growth through deepening our customer relationships.”

Key Highlights for the First Quarter of 2025:

  • Net Interest Margin expanded to 2.98%, up from 2.93% in Q4 2024 and 2.73% a year earlier.
  • Average Cost of Funds declined to 1.84%, improving by 4 basis points from Q4 2024 and 2 basis points year-over-year.
  • Provision for Credit Losses rose to $5.3 million, compared to $1.4 million in the previous quarter and $854,000 in Q1 2024.
  • Fee-Based Revenues increased 6.1% year-over-year, reflecting higher income from insurance, wealth management, and service charges.
  • Other Income included a notable $1.9 million gain from the sale of other real estate owned.
  • Total Loans grew $46.7 million quarter-over-quarter and 7.6% year-over-year.
  • Total Deposits rose by 4.4% from Q4 2024 and 4.7% from Q1 2024, reaching $6.8 billion.
  • Loan-to-Deposit Ratio improved to 89.8%, down from 93.0% in Q4 2024.
  • Tier 1 Capital to Average Assets ratio strengthened to 9.31%, up from 9.27% at the end of 2024.

Net Interest Income Growth

Tompkins reported net interest income of $56.7 million, an increase of 0.7% over the previous quarter and 11.8% year-over-year. Improvements in both net interest margin and average loan balances were key drivers.

The net interest margin rose to 2.98%, benefitting from lower funding costs and a more favorable funding mix. The average yield on interest-earning assets also increased to 4.69%, up 22 basis points compared to the first quarter of 2024.

Loan growth remained robust, with average loans rising 1.6% quarter-over-quarter and 7.2% year-over-year, led by expansion in commercial real estate and commercial and industrial portfolios.

Deposit trends were similarly positive, with average total deposits up 0.6% quarter-over-quarter and 4.0% year-over-year. The cost of interest-bearing deposits slightly declined from the fourth quarter, reflecting improved deposit pricing discipline.

Solid Noninterest Income Performance

Noninterest income reached $25.0 million for the first quarter, up 13.1% year-over-year.
Key contributors included:

  • A $1.9 million gain from the sale of other real estate owned.
  • Insurance commissions and fees rising 13.1%.
  • Wealth management fees increasing 3.7%.

These gains were partially offset by lower card services income, which was inflated in Q1 2024 by a one-time bonus tied to a contract renewal.

Managing Noninterest Expense

Noninterest expenses totaled $50.6 million, up 1.5% compared to the same period in 2024.

  • Higher salaries and employee benefits, up 3.1%, were the primary driver.
  • This increase was partly offset by reduced occupancy and equipment expenses, which fell 5.7%.

Tax and Asset Quality Updates

Income tax expense for the first quarter was $6.1 million, representing an effective tax rate of 23.7%, slightly up from 23.5% in the previous quarter and year-ago period.

Asset quality metrics showed some pressure:

  • Allowance for credit losses stood at 1.01% of total loans, up from 0.94% at year-end 2024.
  • A specific $4.2 million reserve was added for one commercial real estate loan.
  • Nonperforming assets totaled $71.2 million, or 0.87% of total assets, reflecting an increase from both Q4 2024 and Q1 2024.

Despite the rise in nonperforming assets, Tompkins noted that collateral values remained strong and were expected to sufficiently cover exposures.

Strong Capital and Liquidity Positions

Tompkins continues to maintain a robust capital base:

  • Total Capital to Risk-Weighted Assets was 13.28% at quarter-end.
  • Tier 1 Capital to Average Assets improved to 9.31%.

Liquidity remained stable, with access to over $1.5 billion in available funding, representing 18.6% of total assets.

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 banks 111,683  80,763 
Cash and Cash Equivalents 193,065  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 fees 6,066,645  6,019,922 
Less: Allowance for credit losses 61,023  56,496 
Net Loans and Leases 6,005,622  5,963,426 
   
Federal Home Loan Bank and other stock 29,127  42,255 
Bank premises and equipment, net 75,819  76,627 
Corporate owned life insurance 77,063  76,448 
Goodwill 92,602  92,602 
Other intangible assets, net 2,176  2,203 
Accrued interest and other assets 151,577  176,359 
Total Assets$8,199,653 $8,109,080 
LIABILITIES  
Deposits:  
Interest bearing:  
Checking, savings and money market 3,749,888  3,558,946 
Time 1,183,548  1,068,375 
Noninterest bearing 1,820,066  1,844,484 
Total Deposits 6,753,502  6,471,805 
   
Federal funds purchased and securities sold under agreements to repurchase 122,985  37,036 
Other borrowings 493,247  790,247 
Other liabilities 88,542  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, 2024 1,447  1,447 
Additional paid-in capital 299,013  300,073 
Retained earnings 547,887  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 banks 175 235  154 
Available-for-sale debt securities 8,729 8,760  9,611 
Held-to-maturity debt securities 1,217 1,222  1,218 
Federal Home Loan Bank and other stock 711 894  601 
Total Interest and Dividend Income 89,462$90,022 $83,183 
INTEREST EXPENSE   
Time certificates of deposits of $250,000 or more 4,507 4,698  4,010 
Other deposits 22,143 22,856  20,424 
Federal funds purchased and securities sold under agreements to repurchase 41 11  13 
Other borrowings 6,109 6,176  8,061 
Total Interest Expense 32,800 33,741  32,508 
Net Interest Income 56,662 56,281  50,675 
Less: Provision for credit loss expense 5,287 1,411  854 
Net Interest Income After Provision for Credit Loss Expense 51,375 54,870  49,821 
NONINTEREST INCOME   
Insurance commissions and fees 11,599 8,471  10,259 
Wealth management fees 5,119 4,878  4,937 
Service charges on deposit accounts 1,805 1,854  1,796 
Card services income 2,626 2,919  2,939 
Other income 3,869 2,740  2,220 
Net gain (loss) on securities transactions 14 (33) (14)
Total Noninterest Income 25,032 20,829  22,137 
NONINTEREST EXPENSE   
Salaries and wages 24,977 25,870  24,697 
Other employee benefits 7,100 7,429  6,411 
Net occupancy expense of premises 3,570 2,873  3,557 
Furniture and fixture expense 1,787 1,834  2,125 
Amortization of intangible assets 84 90  76 
Other operating expense 13,089 11,870  12,991 
Total Noninterest Expenses 50,607 49,966  49,857 
Income Before Income Tax Expense 25,800 25,733  22,101 
Income Tax Expense 6,121 6,045  5,198 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation 19,679 19,688  16,903 
Less: Net Income Attributable to Noncontrolling Interests 0 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 securities 1,598,785 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 securities 1,687,953 10,048 2.41% 1,709,741 10,083 2.35% 1,849,286 10,933 2.38%
FHLBNY and FRB stock 31,983 711 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 assets 7,761,723 89,769 4.69% 7,691,242 90,338 4.67% 7,517,705 83,467 4.47%
Other assets 294,855   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 deposits 1,159,039 10,557 3.69% 1,076,300 10,331 3.82% 988,891 9,398 3.82%
Total interest-bearing deposits 4,841,357 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 repurchase 47,653 41 0.35% 39,519 11 0.11% 48,779 13 0.10%
Other borrowings 561,983 6,109 4.41% 534,219 6,176 4.60% 622,951 8,061 5.21%
Total interest-bearing liabilities 5,450,993 32,800 2.44% 5,311,044 33,741 2.53% 5,206,836 32,508 2.51%
Noninterest bearing deposits 1,779,197   1,844,772   1,831,244  
Accrued expenses and other liabilities 98,278   101,370   96,292  
Total liabilities 7,328,468   7,257,186   7,134,373  
Tompkins Financial Corporation Shareholders’ equity 728,110   715,299   665,333  
Noncontrolling interest 0   1,247   1,419  
Total equity 728,110   716,546   666,752  
Total liabilities and equity$8,056,578  $7,973,732  $7,801,125  
Interest rate spread  2.25%  2.15%  1.95%
Tax-equivalent net interest income/margin on earning assets  56,969 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 Loans 6,066,645 6,019,922 5,881,261 5,761,864 5,640,524 6,019,922
Allowance for credit losses 61,023 56,496 55,384 53,059 51,704 56,496
Total assets 8,199,653 8,109,080 8,006,427 7,869,522 7,778,034 8,109,080
Total deposits 6,753,502 6,471,805 6,577,896 6,285,896 6,449,616 6,471,805
Brokered deposits 99,763 0 20,383 22,808 55,010 0
Federal funds purchased and securities sold under agreements to repurchase 122,985 37,036 67,506 35,989 43,681 37,036
Other borrowings 493,247 790,247 539,327 773,627 522,600 790,247
Total common equity 741,377 713,444 719,855 674,630 667,906 713,444
Total equity 741,377 713,444 721,348 676,093 669,338 713,444
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 assets 8,056,578 7,973,732 7,914,924 7,810,061 7,801,125 7,875,339
Average interest-bearing liabilities 5,450,993 5,311,044 5,277,988 5,215,003 5,206,836 5,252,947
Average equity 728,110 716,546 696,532 662,969 666,752 685,814
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 outstanding 14,433,873 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 expense 5,287 1,411 2,174 2,172 854 6,611
Noninterest income 25,032 20,829 23,385 21,776 22,137 88,127
Noninterest expense 50,607 49,966 49,877 49,942 49,857 199,642
Income tax expense 6,121 6,045 5,858 4,902 5,198 22,003
Net income attributable to Tompkins Financial Corporation 19,679 19,658 18,638 15,682 16,872 70,850
Noncontrolling interests 0 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 accruing 187 323 193 215 151 323
Total nonperforming loans and leases 71,078 50,871 62,574 62,468 62,695 50,871
OREO 81 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 accruing 187 323 193 215 151 323
Total loans and leases past due and accruing 12,472 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 losses 5,260 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$2,270
Provision (credit) for credit losses 27 (558) (1,063) 308 506$(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
Substandard 75,980 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 intangibles 93,586 93,670 93,760 93,847 93,926 93,670
Tangible common equity (Non-GAAP) 647,791 619,774 626,095 580,783 573,980 619,774
Ending shares outstanding 14,433,873 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.

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