In its urge to keep the dividend, Tompkins Financial Corporation (NYSE: TMP ) is compromising on the quality of its earnings. This has led to a negative movement in the stock price in four and a half years andWriting financial analysis reports on companies from all sectors since 2013, recently focusing more on small cap community banks. Leaning more towards technological stocks lately. I believe more in underlying products, services and working culture than just numbers.Analyst’s Disclosure:I/we have no sto ...

Financial Performance - Net income attributable to Tompkins Financial Corporation was $19,679 thousand for Q1 2025, compared to $16,872 thousand in Q1 2024, indicating a year-over-year increase of 16.5%[17]. - Basic earnings per share increased to $1.38 for the three months ended March 31, 2025, up from $1.19 in the same period last year, representing a growth of 16.1%[17]. - The company reported a total comprehensive income of $35,961 thousand for the three months ended March 31, 2025, compared to $7,061 thousand in the same period last year, indicating a significant improvement in overall financial performance[19]. - For the three months ended March 31, 2025, the consolidated net income attributable to Tompkins Financial Corporation was $19,679,000, compared to $16,872,000 for the same period in 2024, representing an increase of approximately 16.5%[113][114]. - Net interest income for the three months ended March 31, 2025, was $56,662,000, compared to $50,675,000 for the same period in 2024, reflecting an increase of approximately 11.7%[113][114]. - Noninterest income for the three months ended March 31, 2025, totaled $25,032,000, compared to $22,137,000 in the prior year, marking an increase of about 13.0%[113][114]. - Noninterest income for Q1 2025 was $8.6 million, up $1.5 million or 21.6% compared to Q1 2024, including a gain on the sale of other real estate owned of $1.9 million[175]. - Noninterest expense for Q1 2025 was $39.7 million, an increase of $330,000 or 0.8% from Q1 2024, primarily due to higher salaries and employee benefits[176]. Asset and Deposit Growth - Total assets increased to $8,199,653 thousand as of March 31, 2025, up from $8,109,080 thousand as of December 31, 2024, representing a growth of 1.1%[15]. - Total deposits grew to $6,753,502 thousand, an increase of 4.4% from $6,471,805 thousand at the end of 2024[15]. - Total assets as of March 31, 2025, were $8.2 billion, an increase of $90.6 million or 1.1% from December 31, 2024[199]. - The company reported total deposits of $6,753,502,000 as of March 31, 2025, compared to $6,449,616,000 as of March 31, 2024, reflecting a growth of about 4.7%[113][114]. Loan and Lease Performance - Net loans and leases rose to $6,005,622 thousand, an increase of 0.7% from $5,963,426 thousand at the end of 2024[15]. - Total loans and leases increased to $6,071,523 thousand as of March 31, 2025, up from $6,025,108 thousand on December 31, 2024, representing a growth of 0.77%[55]. - The total past due loans as of March 31, 2025, amounted to $71,113 thousand, compared to $52,907 thousand on December 31, 2024, reflecting an increase of 34.6%[57][59]. - The commercial real estate segment showed a total of $3,426,172 thousand in loans as of March 31, 2025, up from $3,379,817 thousand at the end of 2024, marking a growth of 1.37%[55]. - The residential real estate loans remained stable with a total of $1,571,953 thousand as of March 31, 2025, slightly increasing from $1,570,840 thousand at the end of 2024[55]. - Total loans and leases at the end of Q1 2025 were $6.07 billion, up from $6.02 billion at the end of 2024[207]. Credit Loss Provisions and Allowances - The provision for credit loss expense was $5,287 thousand for Q1 2025, significantly higher than $854 thousand in Q1 2024, reflecting increased caution in credit risk management[17]. - The allowance for credit losses (ACL) methodology is based on SEC guidance and is critical for evaluating credit loss exposure in the loan portfolio[62]. - The allowance for credit losses on loans and leases increased to $61,023,000 as of March 31, 2025, up from $51,704,000 as of March 31, 2024, representing a 17.9% increase[71][72]. - The provision for credit loss expense for the three months ended March 31, 2025, was $5,260,000, compared to $348,000 for the same period in 2024, indicating a significant increase in provisions[71][72]. - The total gross write-offs for the current period in Commercial and Industrial loans were $0, maintaining a stable performance compared to previous years[82]. Regulatory Compliance and Risk Management - Tompkins Financial Corporation is subject to comprehensive regulation by the Federal Reserve Board and other regulatory authorities, ensuring compliance with various financial regulations[27][28]. - The company manages economic risks, including interest rate, liquidity, and credit risk, primarily through the management of its assets and liabilities[136]. - Regulatory compliance is critical, with oversight from multiple agencies including the Federal Reserve Board and the SEC[159]. Market and Competitive Landscape - The Company faces strong competition from various financial institutions, including banks, credit unions, and online financial services[157][158]. - Tompkins Financial Corporation aims for responsible and sustainable growth, focusing on organic growth and potential acquisitions of financial institutions[152]. Other Financial Metrics - Return on average assets (ROA) for Q1 2025 was 0.99%, compared to 0.87% in Q1 2024, while return on average shareholders' equity (ROE) increased to 10.96% from 10.18%[170]. - The banking segment reported net income of $15.7 million for Q1 2025, a 15.7% increase from $13.6 million in Q1 2024, primarily due to higher net interest margin and other income[172]. - Net interest margin improved to 2.98% in Q1 2025 from 2.73% in Q1 2024, primarily due to lower funding costs and higher yields on interest-earning assets[185].

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its ...

Tompkins Financial (TMP) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.38%. A quarter ago, it was expected that this financial services company would post earnings of $1.21 per share when it actually produced earnings of $1.37, delivering a surprise of 13.22%.Over the last four qu ...

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 immedia ...

Company Overview - Tompkins Financial (TMP) is based in Ithaca and operates in the Finance sector, with a year-to-date share price change of -16.29% [3] - The company currently pays a dividend of $0.62 per share, resulting in a dividend yield of 4.37%, which is higher than the Banks - Northeast industry's yield of 3.2% and the S&P 500's yield of 1.64% [3] Dividend Performance - The current annualized dividend of Tompkins Financial is $2.48, reflecting a 1.6% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 3.89% [4] - The company's payout ratio stands at 50%, indicating that it distributes 50% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Tompkins Financial's earnings per share for 2025 is $5.46, which represents a year-over-year earnings growth rate of 9.86% [5] Investment Considerations - Tompkins Financial is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Group 1 - The article suggests that investors should focus on bank stocks that have access to cheap funding and a history of low loan losses as a strategy for long-term investment [1] - A long-term, buy-and-hold investment approach is favored, particularly for stocks that can consistently deliver high-quality earnings, often found in the dividend and income sectors [1] Group 2 - The author shares insights on various US and Canadian stocks through 'The Compound Investor' and predominantly UK stocks on 'The UK Income Investor' [1]

Company Overview - Tompkins Financial (TMP) is headquartered in Ithaca and operates in the Finance sector [3] - The stock has experienced a price change of -4.91% since the beginning of the year [3] Dividend Information - Tompkins Financial currently pays a dividend of $0.62 per share, resulting in a dividend yield of 3.85% [3] - The average dividend yield for the Banks - Northeast industry is 2.76%, while the S&P 500's yield is 1.56% [3] - The company's annualized dividend of $2.48 has increased by 1.6% from the previous year [4] - Over the last 5 years, Tompkins Financial has increased its dividend 4 times year-over-year, averaging an annual increase of 4.01% [4] - The current payout ratio is 50%, indicating that the company pays out 50% of its trailing 12-month EPS as dividends [4] Earnings Growth - For the fiscal year, Tompkins Financial expects solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.46 per share, reflecting a year-over-year growth rate of 9.86% [5] Investment Appeal - Tompkins Financial is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Core Insights - Nxera Pharma's partner Tempero Bio has initiated a Phase 2 trial for TMP-301, targeting alcohol use disorder, with the trial registered under Clinical Trial ID: NCT06648655 [1] - Tempero Bio has closed a $70 million financing round to support the advancement of TMP-301 through the Phase 2 trial and to prepare for a second Phase 2 trial for cocaine use disorder [1][2] - The Phase 2 study will evaluate the safety, tolerability, and efficacy of TMP-301 compared to a placebo in patients with alcohol use disorder [2] Company Developments - Matt Barnes, EVP and President of Nxera Pharma UK, expressed excitement about the advancement of TMP-301, highlighting the strength of the NxWave™ discovery platform [3] - Nxera Pharma has a pipeline of over 30 active programs, focusing on unmet medical needs across various therapeutic areas, leveraging its GPCR-targeted structure-based drug discovery platform [8] - Nxera Pharma has a strategic equity stake in Tempero Bio and is eligible for future milestone payments and tiered royalties from product sales [4] Financial Aspects - The $70 million financing will be utilized for advancing TMP-301 through clinical trials and conducting preclinical studies for additional indications [1] - There are no milestone payments due from Tempero Bio to Nxera associated with the start of the Phase 2 trial [5]

Financial Performance and Risks - The Company's operations are heavily concentrated in New York State and Pennsylvania, making its financial performance highly dependent on economic conditions in these regions [116]. - The Company must maintain sufficient cash flow and liquid assets to meet financial obligations, with potential reliance on various funding sources including Federal funds and brokered deposits [117]. - Adverse developments in the banking industry have led to decreased confidence among investors and customers, contributing to market volatility and potential impacts on the Company's stock price [111]. - The Company evaluates its investment securities for expected credit-related impairment at least quarterly, which could affect earnings and financial condition [113]. - Liquidity may be adversely affected by the soundness of other financial institutions, impacting the Company's ability to access necessary funding [118]. - The Company relies on cash dividends from its subsidiaries for operations, and any discontinuation of these dividends could materially affect liquidity [123]. - Systemic weaknesses in the Federal Home Loan Bank system could lead to higher borrowing costs and reduced liquidity for the Company [121]. - The company is subject to legal proceedings that could result in significant penalties and reputational harm, impacting financial condition and operations [144]. Cybersecurity and Operational Risks - The Company is exposed to operational risks, including fraud and cybersecurity threats, which could result in financial losses or reputational harm [124][126]. - The company faces significant cybersecurity risks, with the threat of cyber-attacks increasing in volume and sophistication, potentially impacting business operations and financial results [127]. - The company collects and retains large volumes of sensitive customer data, which exposes it to additional risks related to cybersecurity threats and regulatory scrutiny [128]. - A security breach could lead to unauthorized access to confidential information, resulting in regulatory scrutiny, civil litigation, and reputational harm, adversely affecting financial condition and operations [130]. - The company relies on external vendors for critical services, and any failure of these vendors could disrupt operations and negatively impact financial results [131]. Regulatory Environment and Compliance - Changes in laws and regulations governing banks may arise from high-profile bank failures, potentially impacting the Company's capital requirements and operational results [112]. - The company operates in a highly regulated environment, and changes in laws and regulations could increase compliance costs and impact profitability [138]. - The company may face heightened regulatory requirements if total consolidated assets exceed $10 billion, which could lead to increased compliance costs [142]. Strategic and Market Risks - Strategic acquisitions carry risks that could negatively affect the company's financial condition and operational results [146]. - Climate change poses immediate and long-term risks to the company and its clients, including operational, credit, and reputational risks [133]. - The company’s insurance agency subsidiary, Tompkins Insurance, is affected by cyclical insurance premium rates, which can lead to revenue volatility [137]. Technological Developments and Challenges - The financial services industry faces rapid technological developments, particularly in Artificial Intelligence (AI) technologies [149]. - Challenges in achieving optimal accuracy, efficiency, and reliability in AI systems may limit their effectiveness [149]. - The regulatory framework surrounding AI technologies is still in early stages, posing potential legal and reputational risks [149]. - System failures or vulnerabilities in AI could compromise integrity, security, or privacy, affecting financial performance [149]. - Inefficiencies and increased costs may arise if AI technologies are not effectively managed [149]. Risk Management and Adaptability - The company emphasizes the importance of managing risks associated with the development of financial products and services [148]. - Significant investments in new products may lead to obsolescence or regulatory issues, impacting anticipated revenues [148]. - The company is exposed to complex risks as it expands its product offerings, including potential fraud [148]. - The company’s ability to adapt to evolving customer demands is critical for maintaining competitiveness [148]. - Failure to manage risks and uncertainties could have a material adverse effect on the company's business [148].