Financial Performance - The Company reported diluted earnings per share of $11.24 in 2025, an increase of 126.2% compared to $4.97 in 2024[193]. - Net income for the year ended December 31, 2025, was $161.1 million, an increase of 127.3% compared to $70.9 million in 2024[193]. - Adjusted net income, excluding the impact of the sale of TIA and realized losses on sales of investment securities, was $90.4 million for 2025, up 27.7% from the prior year[195]. - Return on average shareholders' equity (ROE) was 20.61% in 2025, compared to 10.33% in 2024[196]. - Noninterest income for 2025 was $141.2 million, an increase of $111.2 million or 370.8% compared to 2024, driven by a $188.2 million gain from the sale of TIA[202]. - Net interest income for 2025 was $249.7 million, an increase of $38.6 million or 18.3% over 2024, attributed to higher average loan balances and yields[207]. - The net interest margin for 2025 improved to 3.17%, up from 2.79% in 2024, due to increased yields on interest-earning assets and lower funding costs[208]. - Noninterest expense for 2025 rose to $170.2 million, an increase of $12.9 million or 8.2% compared to 2024, primarily due to higher salaries and professional fees[203]. Asset and Loan Growth - Total assets increased to $8,224,794 thousand in 2025, up from $7,875,339 thousand in 2024, representing a growth of 4.4%[219]. - Total loans and leases net of unearned income increased to $6,177,928 thousand in 2025, with a net interest margin of 5.43%[219]. - Total loans increased by $426.3 million or 7.1% to $6.4 billion at year-end 2025, with significant growth in commercial real estate and industrial loans[237]. - Average loans and leases increased by $409.4 million or 7.1% in 2025, representing 78.0% of average earning assets[212]. - Commercial real estate loans rose by $282.2 million or 8.4% to $3.7 billion, representing 56.8% of total loans and leases[267]. - Residential real estate loans, including home equity loans, totaled $1.6 billion, up $20.3 million or 1.3% from the previous year, comprising 24.7% of total loans[263]. Credit Quality and Loss Provisions - The provision for credit loss expense was $11.5 million in 2025, compared to $6.6 million in the prior year[201]. - Nonperforming loans and leases decreased to $47.9 million, or 0.74% of total loans and leases, compared to 0.85% in 2024[273]. - The allowance for loan losses was 120.30% of nonperforming loans and leases, indicating strong coverage[273]. - The provision for credit losses for the year ended December 31, 2025, was $11.6 million, compared to $7.4 million for the same period in 2024, driven by significant charge-offs in commercial real estate[299]. Deposits and Funding - Total deposits increased by $466.0 million or 7.2% to $6.9 billion at year-end 2025, with time deposits rising by 21.5%[239]. - Core deposits increased by $255.4 million or 4.9% to $5.5 billion at year-end 2025, representing 79.5% of total deposits[304]. - Non-core funding sources totaled $2.1 billion at December 31, 2025, an increase of $43.3 million or 2.1% compared to December 31, 2024[310]. Securities and Investments - The average tax-equivalent yield on the securities portfolio was 2.63% in 2025, up from 2.36% in 2024 and 1.74% in 2023[259]. - Total interest-earning assets reached $7,916,783 thousand in 2025, with an average yield of 4.84%, up from 4.59% in 2024[219]. - The held-to-maturity debt securities totaled $312,528,000 with a fair value of $283,860,000 as of December 31, 2025, compared to $312,462,000 and $267,295,000 in 2024, respectively[254]. Operational Risks and Compliance - The Company is exposed to operational risks, including fraud, which may result in financial losses and reputational harm[119]. - Cybersecurity threats pose a significant risk to the Company's operations, potentially leading to unauthorized access and loss of sensitive data[122]. - The Company is subject to regulatory scrutiny regarding the collection and retention of sensitive customer data, which exposes it to additional risks[123]. - Increased compliance costs and regulatory scrutiny are anticipated as the Company approaches the $10 billion asset threshold, potentially impacting financial results[136]. Strategic Considerations - The Company is investing in new technology and qualified personnel to prepare for compliance with additional regulatory requirements, which may increase operational costs[136]. - Strategic acquisitions may present risks such as integration challenges and potential deterioration of asset quality post-acquisition, impacting financial performance[140]. - The Company has not identified any trends that are likely to result in material increases or decreases in liquidity in the near term[316].

Financial Performance - Diluted earnings per share (GAAP) for Q4 2025 was $6.70, up 389.1% from $1.37 in Q4 2024[1] - Net income for Q4 2025 was $96.2 million, an increase of 389.6% compared to $19.7 million in Q4 2024[1] - For the year ended December 31, 2025, diluted earnings per share (GAAP) was $11.24, up 126.2% from $4.97 in 2024[2] - Net income attributable to Tompkins Financial Corporation for the year ended December 31, 2025, was $161.071 million, compared to $70.850 million in 2024, representing a 127.6% increase[31] - Basic earnings per share for Q4 2025 were $6.74, up from $1.38 in Q4 2024, reflecting a substantial increase of 388.4%[31] - Adjusted net income (Non-GAAP) for YTD 12/31/2025 was $90,399,000, up from $70,812,000 in YTD 12/31/2024, indicating a year-over-year increase of 27.6%[43] Income and Revenue - Net interest income for Q4 2025 was $69.1 million, up 22.7% compared to Q4 2024[7] - Noninterest income for Q4 2025 was $125.8 million, up 503.8% from $20.9 million in Q4 2024, primarily due to the sale of Tompkins Insurance Agencies[12] - Noninterest income for the year ended December 31, 2025, was $196.871 million, significantly up from $88.127 million in 2024, indicating a growth of 123.5%[31] - Net interest income for the year ended December 31, 2025, was $249,731 thousand, compared to $211,102 thousand for the previous year, marking an increase of 18.2%[33] Assets and Loans - Total assets increased to $8.668 billion as of December 31, 2025, compared to $8.109 billion as of December 31, 2024[29] - Total loans increased by $426.3 million, or 7.1%, from December 31, 2024, with a loan to deposit ratio of 92.9%[8] - Net loans and leases reached $6.389 billion, up from $5.963 billion year-over-year, reflecting a growth of approximately 7.1%[29] - Total deposits increased to $6.938 billion, a rise of 7.2% from $6.472 billion in the previous year[29] Capital and Equity - Capital ratios remained strong, with total capital to risk-weighted assets at 14.55% as of December 31, 2025, up from 13.07% a year earlier[21] - The company maintained a strong capital position with total equity of $938.377 million as of December 31, 2025, compared to $713.444 million a year earlier[29] - Total equity increased to $938,377 thousand as of December 31, 2025, compared to $713,444 thousand a year earlier, reflecting a growth of 31.5%[35] Credit Quality - The allowance for credit losses was 0.89% of total loans at December 31, 2025, down from 0.94% at December 31, 2024[16] - The company reported a provision for credit loss expense of $977 thousand in Q4 2025, down from $1.411 million in Q4 2024, indicating improved credit quality[31] - The allowance for credit losses at the end of the period was $57,671 million, down from $59,889 million in the previous quarter, indicating improved credit quality[39] Shareholder Value - The company repurchased 22,339 shares of common stock at an aggregate cost of $1.6 million during Q4 2025[22] - Tangible book value per share rose to $60.03, up from $48.19 in the previous quarter, indicating a significant increase in shareholder value[41] Profitability Metrics - Return on average assets increased to 4.56%, compared to 1.13% in the previous quarter, demonstrating enhanced profitability[39] - Adjusted return on average equity (Non-GAAP) was 11.59% for QTD 12/31/2025, up from 10.88% for QTD 12/31/2024[43] - Return on average assets (GAAP) improved to 4.56% for QTD 12/31/2025, compared to 0.98% for QTD 12/31/2024[43] Other Financial Metrics - The average yield on interest-earning assets was 4.84% for the year ended December 31, 2025, compared to 4.59% for the previous year, showing an improvement of 0.25 percentage points[33] - The interest rate spread improved to 2.43% for the year ended December 31, 2025, up from 1.99% in the previous year[33] - Average interest-bearing deposits rose to $4,942,463 thousand for the year ended December 31, 2025, from $4,571,474 thousand in the previous year, an increase of 8.1%[33]

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Core Insights - Tompkins Financial Corporation has been included in Piper Sandler's "Sm-All Stars" list, recognizing its strong financial performance and effective long-term growth strategy [1][2] - The selection for the "Class of 2025" highlights Tompkins' consistent ability to achieve sustainable results in a challenging market environment [2] Company Overview - Tompkins Financial Corporation is headquartered in Ithaca, NY, and is the parent company of Tompkins Community Bank, which operates in Central, Western, and Hudson Valley regions of New York, as well as Southeastern Pennsylvania [3] - The bank offers a comprehensive range of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate services, and financial and tax planning [3] Leadership Statement - Stephen S. Romaine, President and CEO, emphasized that the recognition reflects the dedication of the team and the strength of the company's strategic approach, focusing on sound fundamentals and customer-centric solutions [3]

Core Viewpoint - Smaller banks like Tompkins Financial Corporation have experienced a quiet period despite reporting healthy earnings growth in the most recent quarter, leading to a slight decline in share prices [1]. Company Summary - Tompkins Financial Corporation is based in Ithaca, New York, and operates as a community lender [1]. - The company has shown healthy earnings growth, indicating strong financial performance [1]. Investment Approach - The investment strategy focuses on a long-term, buy-and-hold approach, particularly favoring stocks that can sustainably deliver high-quality earnings [1]. - The emphasis is on dividend and income stocks, suggesting a preference for stable returns [1].

Core Viewpoint - Smaller banks like Tompkins Financial Corporation have experienced a quiet period despite reporting healthy earnings growth in the most recent quarter, leading to a slight decline in share prices [1]. Company Summary - Tompkins Financial Corporation is based in Ithaca, New York, and operates as a community lender [1]. - The company has shown healthy earnings growth recently, indicating strong financial performance [1]. Investment Approach - The investment strategy focuses on a long-term, buy-and-hold approach, particularly favoring stocks that can sustainably deliver high-quality earnings [1]. - The emphasis is on dividend and income stocks, suggesting a preference for stable returns [1].

Core Insights - Tompkins Financial Corporation has divested its insurance subsidiary, Tompkins Insurance Agencies (TIA), to Arthur J. Gallagher & Co for approximately $223 million in cash, resulting in a pre-tax gain of $183 million for Tompkins Financial [1][2] Group 1: Transaction Details - The sale of TIA, which has been operational for 150 years, includes its property and casualty insurance services as well as employee benefits services in Pennsylvania and New York [1] - Following the acquisition, all TIA leadership and staff will join Gallagher, with David Boyce continuing as the leader of TIA [2][3] Group 2: Strategic Implications - Tompkins Financial's CEO emphasized that the partnership with Gallagher is in the long-term interests of TIA employees and customers, ensuring continued success [2] - The proceeds from the sale will allow Tompkins Financial to invest in replacing the earnings from Tompkins Insurance in the near term and support strategic investments in the long term [2] Group 3: Gallagher's Perspective - Arthur J. Gallagher's CEO expressed that the acquisition of Tompkins Insurance Agencies enhances their brokerage capabilities across commercial lines, personal lines, and employee benefits [4] - The integration of TIA's customer base into Gallagher's network will provide enhanced resources and services [3]

Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended September 30, 2025, was $23,673 thousand, up from $18,638 thousand in the same period of 2024, marking a growth of 27.4%[17] - Net income attributable to Tompkins Financial Corporation for the nine months ended September 30, 2025, was $64,823,000, an increase of 26.5% compared to $51,192,000 for the same period in 2024[21] - Basic earnings per share for the nine months ended September 30, 2025, increased to $4.55 from $3.60 in the same period of 2024, representing a rise of 26.4%[17] - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $1.66, up from $1.31 in the same period of 2024, reflecting a 26.7% growth[76] - Diluted EPS for the three months ended September 30, 2025, was $1.65, compared to $1.30 in the prior year, indicating a 27.0% increase[76] Asset Growth - Total assets increased to $8,468,731 thousand as of September 30, 2025, up from $8,109,080 thousand at December 31, 2024, representing a growth of 4.4%[15] - Total deposits rose to $7,053,070 thousand as of September 30, 2025, compared to $6,471,805 thousand at December 31, 2024, indicating an increase of 9.0%[15] - Total equity increased to $788,805 thousand as of September 30, 2025, from $713,444 thousand at December 31, 2024, reflecting a growth of 10.5%[15] - Total loans and leases amounted to $6,292,717, an increase from $6,025,108 as of December 31, 2024, representing a growth of approximately 4.45%[50] Income and Expenses - Net interest income after provision for credit loss expense for the nine months ended September 30, 2025, was $170,113 thousand, compared to $149,621 thousand for the same period in 2024, reflecting an increase of 13.7%[17] - Noninterest income for the nine months ended September 30, 2025, totaled $71,108 thousand, compared to $67,298 thousand for the same period in 2024, showing a growth of 5.2%[17] - Noninterest expense for the three months ended September 30, 2025, was $53,847,000, compared to $49,877,000 in the same period of 2024, an increase of 8.0%[91] - Total Noninterest Expenses for the nine months ended September 30, 2025, were $156,077,000, an increase from $149,676,000 in the same period of 2024[17] Credit Losses and Provisions - The provision for credit loss expense for the nine months ended September 30, 2025, was $10,557 thousand, compared to $5,200 thousand for the same period in 2024, reflecting a significant increase of 103.4%[17] - The allowance for credit losses (ACL) at the end of September 30, 2025, was $59,889, an increase from $58,555 at the end of September 30, 2024[65] - The provision for credit loss expense for the three months ended September 30, 2025, was $2,454, compared to $3,237 for the same period in 2024[65] - The total charge-offs for the three months ended September 30, 2025, were $1,333, compared to $1,049 for the same period in 2024[65] Investment and Securities - Total available-for-sale debt securities as of September 30, 2025, amounted to $1,291,053,000, with unrealized losses of $102,068,000[40] - Held-to-maturity debt securities totaled $281,624,000 as of September 30, 2025, with unrealized losses of $30,886,000[41] - The company recognized net gains on equity securities of $10,000 and $25,500 for the three and nine months ended September 30, 2025, respectively[41] - The total fair value of available-for-sale debt securities with unrealized losses was $835,428,000 as of September 30, 2025[42] Cash Flow and Liquidity - Net cash provided by operating activities increased to $76,073,000, up from $71,717,000, reflecting a growth of 6.0% year-over-year[21] - Total cash and cash equivalents at the end of the period reached $193,492,000, compared to $132,320,000 at the end of September 30, 2024, marking a 46.2% increase[21] - The company reported a net cash used in investing activities of $(270,248,000), compared to $(125,048,000) in the previous year, indicating increased investment activity[21] Comprehensive Income - Total comprehensive income attributable to Tompkins Financial Corporation for the nine months ended September 30, 2025, was $99,542 thousand, compared to $74,997 thousand for the same period in 2024, indicating an increase of 32.8%[19] - Other comprehensive income for the three months ended September 30, 2025, was $11,342, compared to $34,470 for the same period in 2024, reflecting a decrease of approximately 67.1%[79] - For the nine months ended September 30, 2025, the other comprehensive income was $34,719, compared to $23,805 for the same period in 2024, representing an increase of approximately 45.9%[80] Regulatory and Accounting Standards - The company is currently evaluating the potential impact of ASU No. 2023-09 on its consolidated financial statements, effective for fiscal years beginning after December 15, 2024[37] - The company has adopted new accounting standards that improve segment reporting disclosures, effective for fiscal years beginning after December 15, 2023[34] - The company has not identified any new accounting standards that it believes will have a material impact on its financial statements[39] Loan Performance - The total past due loans as of September 30, 2025, amounted to $52,697, with a significant portion attributed to commercial real estate[53] - Nonaccrual loans and leases totaled $9,047 as of September 30, 2025, with $52,805 past due over 89 days[55] - The total performing loans for Residential Mortgages reached $1,343,743,000, a significant increase from $649,101,000 in the previous year[72] - The total loans for Commercial Real Estate - Agriculture reached $226,656,000, with a significant portion classified as Pass[71]

Financial Performance - Diluted earnings per share for Q3 2025 were $1.65, up 10.0% from Q2 2025 and up 26.9% from Q3 2024[1] - Net income for Q3 2025 was $23.7 million, an increase of $2.2 million or 10.3% compared to Q2 2025, and up $5.0 million or 27.0% from Q3 2024[1] - Basic earnings per share increased to $1.66 for the three months ended September 30, 2025, up from $1.31 in the same period last year, representing a growth of 26.7%[27] - Net income attributable to Tompkins Financial Corporation was $23,673,000, compared to $21,471,000 in the previous quarter, marking an increase of 10.3%[34] Income and Expenses - Net interest income for Q3 2025 was $63.9 million, up $3.7 million or 6.2% from Q2 2025, and up $10.7 million or 20.1% from Q3 2024[5] - Noninterest income for Q3 2025 was $23.6 million, up $179,000 or 0.8% compared to Q3 2024[12] - Noninterest expense for Q3 2025 was $53.8 million, up $4.0 million or 8.0% compared to Q3 2024[13] - Total noninterest expenses increased to $53,847 thousand for the three months ended September 30, 2025, compared to $49,877 thousand for the same period in 2024, reflecting an increase of 8.0%[27] Credit and Loans - Provision for credit losses for Q3 2025 was $2.5 million, compared to $2.2 million for Q3 2024[16] - The allowance for credit losses represented 0.95% of total loans and leases at September 30, 2025, unchanged from the prior quarter[15] - Net loans and leases rose to $6,228,182 thousand, an increase of 4.5% from $5,963,426 thousand at the end of 2024[25] - Total loans and leases reached $6,216,384 thousand for the quarter ended September 30, 2025, compared to $5,830,899 thousand for the same quarter last year, reflecting an increase of 6.61%[28] Assets and Deposits - Total assets increased to $8,468,731 thousand as of September 30, 2025, up from $8,109,080 thousand at December 31, 2024, representing a growth of 4.4%[25] - Total deposits at September 30, 2025 were $7.1 billion, up $337.3 million or 5.0% compared to Q2 2025, and up $475.2 million or 7.2% from Q3 2024[10] - Total deposits grew to $7,053,070 thousand, reflecting a 9.0% increase from $6,471,805 thousand at December 31, 2024[25] - Total deposits rose to $7,053,070 thousand as of September 30, 2025, compared to $6,471,805 thousand a year prior, indicating an increase of 8.99%[31] Capital and Equity - The company's retained earnings increased to $575,112 thousand as of September 30, 2025, up from $537,157 thousand at December 31, 2024, a growth of 7.1%[25] - Total equity rose to $788,805 thousand as of September 30, 2025, compared to $713,444 thousand at December 31, 2024, representing an increase of 10.5%[25] - Total equity increased to $771,527 thousand as of September 30, 2025, compared to $696,532 thousand a year earlier, reflecting a growth of 10.77%[28] Performance Ratios - The return on average assets improved to 1.13%, up from 1.05% in the previous quarter[36] - The Tier 1 Capital ratio to average assets was reported at 9.41%, slightly up from 9.36% in the previous quarter, indicating strong capital adequacy[36] - The average yield on interest-earning assets improved to 4.90% for the quarter ended September 30, 2025, compared to 4.66% for the same quarter last year[28] - The interest rate spread for the quarter was 2.45%, an increase from 1.95% in the same quarter of the previous year[28]

Core Insights - Tompkins Financial Corporation has seen a strong rally in its shares over the past few months, recovering losses from the "Liberation Day" panic [1] Group 1: Company Performance - The company has returned to a strong position, indicating resilience in its stock performance [1] Group 2: Investment Strategy - A long-term, buy-and-hold investment approach is favored, particularly for stocks that can sustainably generate high-quality earnings [1]