Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended March 31, 2024, was $16,872 thousand, down 13.0% from $19,381 thousand for the same period in 2023[14]. - Basic earnings per share decreased to $1.19 for Q1 2024, down from $1.35 in Q1 2023, a decline of 11.9%[14]. - Total comprehensive income for the first quarter of 2024 was $7,092,000, significantly lower than $40,255,000 reported in the first quarter of 2023[23]. - Net income available to common shareholders for Q1 2024 was $16,872,000, down from $19,381,000 in Q1 2023, a reduction of about 7.76%[82]. - Return on average assets (ROA) for Q1 2024 was 0.87%, compared to 1.03% in Q1 2023; return on average shareholders' equity (ROE) was 10.18%, down from 12.45% in the same period[168]. Income and Revenue - Total interest and dividend income increased to $83,183 thousand for Q1 2024, a rise of 19.9% compared to $69,238 thousand in Q1 2023[14]. - Noninterest income rose to $22,137 thousand in Q1 2024, up 8.5% from $20,400 thousand in Q1 2023[14]. - The total noninterest income for the three months ended March 31, 2024, was $22,137,000, an increase from $20,400,000 in the same period of 2023, representing a growth of approximately 8.5%[99]. - Commissions and fees from insurance revenues increased to $10,259,000 for the three months ended March 31, 2024, compared to $9,509,000 in 2023, reflecting a rise of 7.9%[99]. - Trust and asset management income rose to $4,468,000 for the three months ended March 31, 2024, up from $3,435,000 in 2023, indicating a growth of 30.1%[99]. Expenses - Total noninterest expenses slightly decreased to $49,857 thousand in Q1 2024 from $50,158 thousand in Q1 2023, a reduction of 0.6%[14]. - Noninterest expenses decreased by $485,000 or 1.2% to $39.4 million in Q1 2024, with reductions in salary and employee benefits[174]. - The net periodic benefit cost for pension benefits was reported as a cost of $141,000 for the three months ended March 31, 2024, compared to a cost of $72,000 in 2023[88]. - The marketing expense for the three months ended March 31, 2024, was $975,000, a decrease from $1,105,000 in the same period of 2023[91]. Assets and Liabilities - Total assets decreased to $7,778,034 thousand as of March 31, 2024, from $7,819,749 thousand as of December 31, 2023, representing a decline of 0.5%[12]. - Total deposits increased to $6,449,616 thousand as of March 31, 2024, compared to $6,399,847 thousand as of December 31, 2023, reflecting a growth of 0.8%[12]. - The total available-for-sale debt securities as of March 31, 2024, amounted to $1,366,355,000, down from $1,416,650,000 at December 31, 2023[37]. - The fair value of available-for-sale debt securities as of March 31, 2024, was $1.366 billion, a decrease from $1.416 billion at December 31, 2023[115]. - The fair value of held-to-maturity debt securities totaled $265,102,000 as of March 31, 2024, compared to $312,415,000 at the end of the previous quarter[38]. Loans and Credit Quality - Total loans and leases increased to $5,645,359,000 as of March 31, 2024, up from $5,610,929,000 on December 31, 2023, representing a growth of approximately 0.6%[52]. - Nonaccrual loans totaled $41,905,000 as of March 31, 2024, with no related allowance for credit losses, indicating a focus on managing credit risk[57]. - The allowance for credit losses on loans and leases increased to $51,704,000 as of March 31, 2024, from $51,584,000 at the beginning of the period, reflecting a net increase of $120,000[69]. - The provision for credit loss expense for the three months ended March 31, 2024, was $348,000, compared to a provision expense of $(1,180,000) for the same period in 2023, indicating a significant improvement[70]. - The company recognized $0 of interest income on nonaccrual loans during the three months ended March 31, 2024, highlighting potential challenges in loan recoverability[59]. Market and Regulatory Information - Tompkins Financial Corporation's common stock is traded on the NYSE American under the symbol "TMP" and is regulated under the Bank Holding Company Act[25]. - The company adopted ASU 2023-02, which allows for consistent accounting for equity investments made primarily for tax credits, effective for fiscal years beginning after December 15, 2023[31]. - The company expects average assets to exceed $8.0 billion for the 2024 tax year, impacting tax benefits eligibility[202]. Strategic Initiatives - The Company is focused on responsible and sustainable growth, including potential acquisitions of financial institutions and branches to enhance its market presence[149]. - Tompkins Community Bank operates 55 banking offices, with 39 in New York and 16 in Pennsylvania, providing a range of commercial and consumer banking services[150]. - The Company aims to enhance its wealth management services through Tompkins Financial Advisors, which offers investment management and financial planning[151]. - Tompkins Insurance has successfully consolidated smaller insurance agencies into its operations, expanding its service offerings in the market areas served by the banking subsidiaries[152].

Earnings Performance - Diluted earnings per share for Q1 2024 were $1.18, up 12.4% from the previous quarter, but down 12.6% from $1.35 in Q1 2023[1] - Net income for Q1 2024 was $16.9 million, a 12.5% increase from the prior quarter, but a 13.0% decrease from $19.4 million in Q1 2023[2] - Net income attributable to Tompkins Financial Corporation was $16,872 thousand for Q1 2024, down from $19,381 thousand in Q1 2023, a decline of 13.00%[26] - Basic earnings per share for Q1 2024 was $1.19, compared to $1.35 in Q1 2023, reflecting a decrease of 11.85%[26] - Basic earnings per share for the quarter were $1.19, compared to $1.06 in the previous quarter[31] Income and Revenue - Noninterest income for Q1 2024 was $22.1 million, up 8.5% from Q1 2023, driven by increases in fee-based revenues[11] - Interest and dividend income for Q1 2024 was $83,183 thousand, up 19.99% from $69,238 thousand in Q1 2023[26] - Net interest income after provision for credit loss expense was $49,821 thousand, a decrease of 9.83% compared to $55,071 thousand in Q1 2023[26] - Noninterest income increased to $22,137 thousand, up from $20,400 thousand in Q1 2023, marking an increase of 8.54%[26] - Noninterest income for the quarter was $22,137 thousand, an increase from $18,850 thousand in the previous quarter[31] Expenses and Costs - Total operating expenses were $49.9 million in Q1 2024, down 2.8% from Q4 2023 and 0.6% from Q1 2023[9] - Average cost of deposits rose to 1.54% in Mar-24 from 1.43% in Dec-23, reflecting increased funding costs[33] Loans and Assets - Average loans increased by $134.9 million, or 2.5%, from Q4 2023, and by $370.3 million, or 7.1%, from Q1 2023, mainly in the commercial real estate portfolio[7] - Total loans and leases rose to $5,621,604 thousand, with net interest income from loans at $71,779 thousand, yielding 5.14%[28] - Total loans and leases past due and accruing increased to $8,166,000 in Mar-24 from $4,311,000 in Dec-23, reflecting a significant rise[33] Interest and Margins - Net interest income decreased to $50.7 million in Q1 2024, down from $52.4 million in Q4 2023 and $54.2 million in Q1 2023, primarily due to increased funding costs[5] - The net interest margin for Q1 2024 was 2.73%, down from 2.82% in Q4 2023 and 2.99% in Q1 2023, due to higher funding costs[4] - The interest rate spread for Q1 2024 was 1.95%, down from 2.09% in the previous quarter[27] - The interest rate spread decreased to 1.95% from 2.55% year-over-year[28] - Average yield on interest-earning assets increased to 4.47% in Mar-24 from 4.34% in Dec-23, reflecting better asset performance[33] Deposits and Liquidity - Total deposits at March 31, 2024, were $6.4 billion, up $49.8 million, or 0.8%, from December 31, 2023, but down $59.4 million, or 0.9%, from March 31, 2023[9] - Total deposits rose to $6,449,616 thousand, an increase of 0.78% from $6,399,847 thousand[24] - The Company's liquidity position included $1.5 billion in ready access liquidity, representing 19.3% of total assets at March 31, 2024[20] Credit Quality - The allowance for credit losses was 0.92% of total loans at March 31, 2024, up from 0.87% at March 31, 2023[14] - The allowance for credit losses increased to $51,704 thousand, up from $51,584 thousand in the previous quarter[29] - The provision for credit losses was $348,000 in Mar-24, a decrease from $2,658,000 in Dec-23, suggesting improved credit quality[33] - Nonperforming assets totaled $62,695 thousand, with nonaccrual loans and leases at $62,544 thousand[32] - Nonperforming loans and leases to total loans and leases ratio remained stable at 1.11% in Mar-24, unchanged from Dec-23[33] Capital and Equity - Total equity decreased slightly to $669,338 thousand as of March 31, 2024, from $669,934 thousand as of December 31, 2023[24] - The total capital to risk-weighted assets ratio was 13.43% in Mar-24, up from 13.36% in Dec-23, indicating strong capital adequacy[33] - Tangible book value per share (Non-GAAP) was $39.85 in Mar-24, slightly down from $39.88 in Dec-23[35] Asset Management - Total assets decreased to $7,778,034 thousand as of March 31, 2024, from $7,819,749 thousand as of December 31, 2023, representing a decline of 0.53%[24] - Total interest-earning assets increased to $7,517,705 thousand with a net interest income of $50,675 thousand, reflecting a yield of 4.47%[28]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to ______ Commission File Number 1-12709 Tompkins Financial Corporation (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______ Commission File Number 1-12709 Tompkins Financial Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Financial Performance - Net income attributable to Tompkins Financial Corporation was $8,475 thousand for the three months ended June 30, 2023, compared to $20,869 thousand for the same period in 2022, a decline of 59.39%[15]. - Basic earnings per share decreased to $0.59 for the three months ended June 30, 2023, from $1.45 in the same period last year, a drop of 59.31%[15]. - Net income for Q2 2023 was $8.5 million or $0.59 diluted earnings per share, down 59.4% from $20.9 million or $1.45 per share in Q2 2022[178]. - For the six months ended June 30, 2023, basic EPS was $1.94, down from $3.06 in 2022, reflecting a decrease of about 36.5%[80]. - The company reported a net income attributable to Tompkins Financial Corporation of $8,475,000 for the three months ended June 30, 2023, down from $20,869,000 in the same period of 2022, a decrease of approximately 59.4%[115][118]. Asset and Liability Management - Total assets decreased to $7,626,238 thousand as of June 30, 2023, from $7,670,686 thousand as of December 31, 2022, representing a decline of 0.58%[12]. - Total deposits decreased to $6,454,651 thousand, down from $6,602,295 thousand, a reduction of 2.24%[12]. - The total shareholders' equity as of June 30, 2023, was $636,441,000, a decrease from $624,318,000 as of June 30, 2022[24]. - The company repurchased 108,219 shares during the six months ended June 30, 2023, resulting in a reduction of common stock by $6,378,000[24]. - The accumulated other comprehensive loss increased to $(195,520,000) as of June 30, 2023, from $(178,869,000) as of June 30, 2022[24]. Income and Expenses - Net interest income after credit for credit loss expense was $49,643 thousand for the three months ended June 30, 2023, compared to $57,406 thousand for the same period in 2022, a decline of 13.06%[15]. - Noninterest income totaled $12,615 thousand for the three months ended June 30, 2023, down from $18,944 thousand in the same period last year, a decrease of 33.25%[15]. - Noninterest expenses for the six months ended June 30, 2023, totaled $27.937 million, up 11.5% from $25.049 million in the prior year[94]. - Noninterest income for the three months ended June 30, 2023, was $12.6 million, down $6.3 million from the same period in 2022, including a pre-tax loss of $7.1 million on the sale of available-for-sale securities[202]. - Noninterest expense for Q2 2023 was $52.0 million, up 5.8% compared to Q2 2022, and $102.1 million for the first six months, up 6.4% year-over-year[207]. Credit Quality and Provisions - The allowance for credit losses (ACL) increased to $48,545,000 as of June 30, 2023, up from $46,099,000 at the beginning of the period[63]. - The provision for credit loss expense for the three months ended June 30, 2023, was $2,419,000, compared to $780,000 for the same period in 2022[63][64]. - The provision for credit losses increased to $2.3 million for Q2 2023, compared to $856,000 in Q2 2022, driven by weaker economic forecasts and loan growth[183]. - The total past due loans as of June 30, 2023, were $41,797, which is an increase from $23,298 as of December 31, 2022, indicating a rise of approximately 79.6%[48][49]. - Nonaccrual loans totaled $9,334 as of June 30, 2023, compared to $8,000 as of December 31, 2022, showing an increase of approximately 16.7%[51]. Securities and Investments - As of June 30, 2023, the total available-for-sale debt securities amounted to $1,688,051,000, with unrealized losses of $220,058,000[33]. - The total held-to-maturity debt securities as of June 30, 2023, were valued at $312,369,000, with unrealized losses of $49,925,000[34]. - The company sold $80.9 million of available-for-sale debt securities in Q2 2023, incurring a loss of $7.1 million[34]. - The fair value of U.S. Treasuries in the available-for-sale portfolio was $168,094,000 as of June 30, 2023, with unrealized losses of $22,181,000[35]. - The total gross unrealized losses for available-for-sale debt securities were primarily due to changes in interest rates and market liquidity, not credit-related issues[39]. Operational Highlights - Tompkins Financial Corporation aims for responsible and sustainable growth, including potential acquisitions of financial institutions and services[159]. - The Company operates 60 banking offices, with 41 in New York and 19 in Pennsylvania, focusing on attracting deposits and originating various loans[160]. - Tompkins Financial Advisors provides wealth management services, including investment management and financial planning, to customers of Tompkins Community Bank[161]. - Tompkins Insurance has successfully consolidated smaller insurance agencies into its operations, enhancing its service offerings in the market areas served[162]. - The company did not contribute to the pension plan in the first six months of 2023 and 2022, maintaining a consistent approach[92].

Financial Performance - Net income attributable to Tompkins Financial Corporation was $19,381 thousand for the three months ended March 31, 2023, compared to $23,273 thousand for the same period in 2022, a decrease of 16.67%[14] - Basic earnings per share decreased to $1.35 for the three months ended March 31, 2023, from $1.61 for the same period in 2022, a decline of 16.13%[14] - The company reported total comprehensive income of $40,255,000 for Q1 2023, compared to a total comprehensive loss of $56,595,000 for Q1 2022[23] - Net income for Q1 2023 was $19.4 million, or $1.35 diluted earnings per share, down from $23.3 million, or $1.60 diluted earnings per share in Q1 2022, primarily due to increased interest expense and operating expenses[146] - The banking segment reported net income of $16.9 million for Q1 2023, a decrease of $3.4 million or 16.8% from Q1 2022, attributed to increased funding costs and operating expenses[149] Asset and Deposit Changes - Total assets decreased to $7,644,371 thousand as of March 31, 2023, from $7,670,686 thousand as of December 31, 2022, representing a decline of 0.34%[12] - Total deposits decreased to $6,509,009 thousand as of March 31, 2023, from $6,602,295 thousand as of December 31, 2022, a decline of 1.41%[12] - Cash and cash equivalents decreased to $70,537 thousand as of March 31, 2023, from $77,837 thousand as of December 31, 2022, a decline of 3.30%[12] - Total loans and leases as of March 31, 2023, were $5,278,772, slightly up from $5,273,658 as of December 31, 2022[45] - Total deposits as of March 31, 2023, were $6.5 billion, a decrease of $93.3 million or 1.4% from December 31, 2022, with total uninsured deposits remaining at $2.6 billion[145] Income and Expense Analysis - Net interest income after credit for credit loss expense was $55,071 thousand for the three months ended March 31, 2023, down from $57,134 thousand for the same period in 2022, a decrease of 3.63%[14] - Total noninterest income increased to $20,400 thousand for the three months ended March 31, 2023, from $19,985 thousand for the same period in 2022, an increase of 2.09%[14] - Total noninterest expenses rose to $50,158 thousand for the three months ended March 31, 2023, compared to $46,839 thousand for the same period in 2022, an increase of 6.63%[14] - Noninterest expenses totaled $50,158,000 for Q1 2023, up from $48,000,000 in Q1 2022, marking an increase of 4.51%[101] - Noninterest income for Q1 2023 was $6.7 million, an increase of $505,000 or 8.2% compared to Q1 2022, driven by earnings on bank-owned life insurance and debit card services[152] Credit Losses and Allowances - The allowance for credit losses increased to $46,099 thousand as of March 31, 2023, from $45,934 thousand as of December 31, 2022, an increase of 0.36%[12] - The provision for credit losses was a credit of $825,000 for Q1 2023, compared to a credit of $520,000 for the same period in 2022[151] - The allowance for credit losses at the end of Q1 2023 was $42,126,000, down from $42,843,000 at the beginning of the period, reflecting a decrease of approximately 1.7%[62] - The total charge-offs for the three months ended March 31, 2023, were $108,000, with recoveries amounting to $1,389,000[61] - The allowance for credit losses covered 162.11% of nonperforming loans and leases as of March 31, 2023, up from 139.86% at December 31, 2022[202] Securities and Investments - Total available-for-sale debt securities as of March 31, 2023, were valued at $1,585,854,000, down from $1,594,967,000 at December 31, 2022, indicating a decrease of approximately 0.6%[32] - The unrealized losses on available-for-sale debt securities increased to $209,594,000 as of March 31, 2023, compared to $236,844,000 at December 31, 2022, reflecting a reduction of about 11.5%[32] - The fair value of available-for-sale debt securities as of March 31, 2023, was $1,585,854,000, with no transfers between fair value levels during the period[106][109] - The company reported a net unrealized gain of $20,578,000 from available-for-sale debt securities for Q1 2023, a significant recovery from a net unrealized loss of $80,405,000 in Q1 2022[74][75] - The company maintains a policy of purchasing investment-grade securities with relatively short durations to mitigate interest rate risk[178] Regulatory and Compliance - The company is regulated under the Bank Holding Company Act and is subject to examination by various regulatory authorities, ensuring compliance with financial regulations[25] - The Company is subject to regulation by multiple authorities, including the Federal Reserve Board and the SEC, ensuring compliance with financial regulations[134] - The company adopted ASU 2022-02 effective January 1, 2023, which changes the evaluation of loan modifications and credit loss disclosures[65] Market Position and Strategy - Tompkins Financial Corporation operates as a community-based financial services organization, providing a full array of banking and insurance services[24] - The Company has a total of 60 banking offices, with 41 located in New York and 19 in Pennsylvania, focusing on organic growth and potential acquisitions[127] - The Company aims for responsible and sustainable growth, considering acquisitions of financial institutions and branches to enhance market presence[127] - The Company competes with various financial institutions, emphasizing personalized financial relationships and a strong suite of products and services[132] - The Company’s strategy includes a commitment to quality customer service and efficient lending decisions to maintain competitiveness in its primary market areas[133]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to ______ Commission File Number 1-12709 Tompkins Financial Corporation Registrant's telephone number, including area code: (888) 503-5753 Securities reg ...

Financial Performance - Net income attributable to Tompkins Financial Corporation was $21,340 thousand for the three months ended September 30, 2022, compared to $21,342 thousand in the same period last year, indicating a marginal decrease [15]. - For the nine months ended September 30, 2022, net income available to common shareholders was $65,482,000, a decrease from $69,799,000 in 2021, representing a decline of 6.7% [81]. - Net income for Q3 2022 was $21.3 million, or $1.48 diluted earnings per share, unchanged from Q3 2021 [168]. - The banking segment reported net income of $18.0 million for Q3 2022, a 1.4% increase from Q3 2021; however, net income for the nine months ended September 30, 2022, decreased by $3.8 million, or 6.2% [171]. Assets and Liabilities - Total assets decreased to $7,779,941 thousand as of September 30, 2022, from $7,819,982 thousand as of December 31, 2021, representing a decline of 0.5% [12]. - The total shareholders' equity as of September 30, 2022, was $572,959,000, a decrease from $728,253,000 as of September 30, 2021 [24]. - The company reported total assets of $7.8 billion at September 30, 2022, down $40.0 million or 0.5% from December 31, 2021, primarily due to decreased security balances [203]. Loans and Leases - Net loans and leases increased to $5,163,664 thousand, up from $5,032,624 thousand, reflecting a growth of 2.6% year-over-year [12]. - Total loans and leases reached $5.2 billion at September 30, 2022, an increase of $133.0 million or 2.6% from December 31, 2021, primarily in commercial and residential real estate portfolios [210]. - The total past due loans as of September 30, 2022, were $24,109, compared to $11,227 as of December 31, 2021, indicating a significant increase in past due loans [49]. Income and Expenses - Net interest income for the three months ended September 30, 2022, was $58,111 thousand, compared to $56,098 thousand for the same period in 2021, marking a growth of 3.6% [15]. - Noninterest expenses for the nine months ended September 30, 2022, totaled $37,286 thousand, an increase from $35,519 thousand in the same period of 2021, indicating a rise of approximately 5% [96]. - Noninterest income for the three months ended September 30, 2022, was $20.692 million, a slight decrease from $20.854 million in the same period of 2021 [105]. Comprehensive Income - Total comprehensive loss attributable to Tompkins Financial Corporation was $(43,028) thousand for the three months ended September 30, 2022, compared to a gain of $14,130 thousand in the same period last year [17]. - The total comprehensive loss for the nine months ended September 30, 2022, was $42,997,000 compared to a total comprehensive income of $14,162,000 for the same period in 2021 [24]. - The total other comprehensive loss income for the nine months ended September 30, 2022, was $(243,237) thousand, compared to $(55,094) thousand for the same period in 2021, reflecting a substantial decline in comprehensive income [85]. Credit Quality and Losses - The allowance for credit losses (ACL) at the end of September 30, 2022, was $44,772,000, reflecting a decrease from the beginning balance of $43,793,000 [62]. - The provision for credit loss expense for the three months ended September 30, 2022, was $1,101,000, compared to a provision of $(1,177,000) for the same period in 2021 [64]. - The company recognized no interest income on nonaccrual loans during the three and nine months ended September 30, 2022 and 2021 [53]. Securities and Investments - Total available-for-sale debt securities as of September 30, 2022, amounted to $2,010,101, with a fair value of $1,740,936, reflecting unrealized losses of $269,174 [34]. - The company reported a net unrealized loss of $85,912,000 on available-for-sale debt securities for Q3 2022, compared to a loss of $10,400,000 in Q3 2021, showing a significant increase in losses [82]. - The available-for-sale debt securities portfolio had net unrealized losses of $269.2 million as of September 30, 2022, compared to $19.3 million at December 31, 2021, due to increases in market interest rates [206]. Operational Segments - The company operates through three reportable segments: Banking, Insurance, and Wealth Management, with distinct revenue streams and performance obligations [110]. - The insurance segment reported net income of $2.7 million for Q3 2022, an increase of $467,000 or 20.7% compared to Q3 2021, with total noninterest revenue up $1.0 million or 10.1% [176]. - The wealth management segment reported net income of $596,000 for Q3 2022, down $721,000 or 54.8% from Q3 2021, with revenue decreasing by $705,000 or 14.0% [179].

Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended June 30, 2022, was $20,869 thousand, down from $22,831 thousand in the same period last year, a decrease of 8.59%[15]. - Basic earnings per share for the three months ended June 30, 2022, was $1.45, compared to $1.55 for the same period in 2021, a decline of 6.45%[15]. - For the six months ended June 30, 2022, net income available to common shareholders was $44,142,000, resulting in a basic EPS of $3.06 and diluted EPS of $3.05[79]. - The company experienced a decrease in net income from $48,457,000 in the prior year to $44,142,000 in the current year for the six-month period[79]. - Net income for Q2 2022 was $20.9 million, or $1.45 diluted earnings per share, down 8.6% from $22.8 million, or $1.54 per share in Q2 2021[166]. Asset Management - Total assets increased to $7,842,461 thousand as of June 30, 2022, compared to $7,819,982 thousand as of December 31, 2021, reflecting a growth of 0.29%[12]. - As of June 30, 2022, total shareholders' equity was $624,318,000, a decrease from $728,253,000 at the same time in 2021[24]. - The total available-for-sale debt securities amounted to $2,075,020, with a fair value of $1,891,718, reflecting unrealized losses of $183,448[33]. - The total assets included cash and cash equivalents of $80,392 and securities held-to-maturity valued at $312,315, with a fair value of $274,660[133]. - Total assets as of June 30, 2022, were $7.8 billion, up $22.5 million or 0.3% from December 31, 2021, primarily due to loan growth[200]. Loans and Leases - Net loans and leases rose to $5,118,710 thousand, up from $5,032,624 thousand, marking an increase of 1.71%[12]. - Total loans and leases amounted to $15,101,000 in nonaccrual loans and $26,033,000 in loans and leases past due over 89 days as of December 31, 2021[54]. - The total past due loans and leases as of June 30, 2022, were $22,669, representing an increase from $11,227 as of December 31, 2021[48]. - The total commercial real estate loans reached $2,770,574 as of June 30, 2022, up from $2,653,154 as of December 31, 2021[46]. - Total loans and leases for Q2 2022 were $5.12 billion, with a yield of 4.14%, slightly up from 4.10% in Q2 2021[179]. Income and Expenses - Net interest income for the three months ended June 30, 2022, was $58,262 thousand, compared to $54,846 thousand for the same period in 2021, representing an increase of 4.83%[15]. - Noninterest income totaled $18,944 thousand for the three months ended June 30, 2022, slightly up from $18,858 thousand in the prior year, an increase of 0.46%[15]. - Total other operating expenses for the six months ended June 30, 2022, were $25,049, compared to $21,355 for the same period in 2021, reflecting an increase of approximately 17%[94]. - Noninterest expense for Q2 2022 was $39.4 million, an increase of $1.5 million or 4.0% compared to Q2 2021, influenced by one-time expenses related to the consolidation of banking charters[173]. - Noninterest income for Q2 2022 was $6.3 million, down $118,000 or 1.8% from Q2 2021, primarily due to reduced income on bank-owned life insurance and lower gains on residential loans[172]. Credit Losses and Provisions - The allowance for credit losses (ACL) increased to $43,793,000 by the end of June 30, 2022, from $42,126,000 at the beginning of the period[63]. - The provision for credit loss expense for the three months ended June 30, 2022, was $(4,901,000), indicating a reversal compared to a provision of $336,000 in the same period last year[114]. - The provision for credit losses was an expense of $856,000 for Q2 2022, compared to a credit of $3.1 million in Q2 2021[171]. - The company recorded no new troubled debt restructurings (TDRs) during the three and six months ended June 30, 2022, or 2021[70]. - The company utilizes a discounted cash flow (DCF) method to estimate expected credit losses, adjusting for factors such as prepayment speed and probability of default[56]. Shareholder Equity and Dividends - The company declared cash dividends of $0.57 per share, totaling $8,299,000 for the six months ended June 30, 2022[24]. - The company’s common stock repurchased and returned to unissued status amounted to 49,629 shares, resulting in a reduction of $3,758,000 in equity[24]. - The company’s retained earnings as of June 30, 2022, were $502,770,000, an increase from $450,773,000 in the previous year[25]. - The company has maintained a strong capital position with a total equity ratio of approximately 9.1% as of June 30, 2022[114]. - Total equity as of June 30, 2022, was $728,253,000, compared to $667,007,000 in the previous year, reflecting an increase of 9%[114]. Market and Regulatory Environment - Tompkins Financial Corporation is regulated under the Bank Holding Company Act and is subject to examination by the Federal Reserve Board[26]. - The company merged its four wholly-owned banking subsidiaries into Tompkins Trust Company, which was renamed Tompkins Community Bank effective January 1, 2022[26]. - The Company’s strategic initiative includes a focus on responsible and sustainable growth, targeting acquisitions of financial institutions and branches to enhance market presence[145]. - The Company’s insurance subsidiary, Tompkins Insurance, has successfully consolidated smaller agencies, expanding its market reach and service offerings[148]. - The Company’s wealth management services are provided under the trade name Tompkins Financial Advisors, enhancing customer service integration[147].

Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended March 31, 2022, was $23,273 thousand, a decrease of 8.7% from $25,626 thousand for the same period in 2021[14]. - The company reported a basic earnings per share of $1.61 for Q1 2022, down from $1.73 in Q1 2021, reflecting a decrease of 6.9%[14]. - Net income available to common shareholders for the three months ended March 31, 2022, was $23,273,000, a decrease of 9.3% from $25,626,000 in the same period of 2021[76]. - Net income for Q1 2022 was $23.3 million, or $1.60 diluted earnings per share, down from $25.6 million, or $1.72 diluted earnings per share in Q1 2021[145]. - The banking segment reported net income of $20.3 million for Q1 2022, a decrease of $2.0 million or 8.9% from Q1 2021[148]. - The insurance segment reported net income of $2.1 million for Q1 2022, down $58,000 or 2.7% from Q1 2021, with insurance commissions up $271,000 or 3.5%[153]. - The wealth management segment's net income was $840,000 for Q1 2022, a decrease of $301,000 or 26.4% compared to Q1 2021, primarily due to a $447,000 or 13.6% increase in noninterest expenses[155]. Assets and Liabilities - Total assets increased to $7,891,111 thousand as of March 31, 2022, compared to $7,819,982 thousand as of December 31, 2021, reflecting a growth of 0.9%[12]. - Cash and cash equivalents at the end of the period were $175,075 thousand, a significant decrease from $518,425 thousand at the end of Q1 2021[19]. - Total deposits rose to $7,016,739 thousand as of March 31, 2022, up 3.3% from $6,791,435 thousand as of December 31, 2021[12]. - Total equity as of March 31, 2022, was $657,492,000, compared to $709,936,000 at the end of 2021, indicating a decrease in equity[106]. - The company reported total assets of $7,891,111,000 as of March 31, 2022, compared to $8,095,342,000 at the end of 2021, showing a decrease in total assets[105]. - The total loans and leases as of March 31, 2022, were $5,068,294,000, a slight decrease from $5,082,288,000 as of December 31, 2021[47]. - The total allocation for allowance for credit losses (ACL) was $67,000 as of December 31, 2021, indicating a slight increase from previous periods[65]. Income and Expenses - Net interest income after credit for credit loss expense was $57,134 thousand for Q1 2022, slightly up from $56,867 thousand in Q1 2021, indicating a growth of 0.5%[14]. - Noninterest income remained stable at $19,985 thousand for Q1 2022, compared to $19,983 thousand in Q1 2021, showing a marginal increase[14]. - Total noninterest expenses increased to $46,839 thousand in Q1 2022, up 5.2% from $44,511 thousand in Q1 2021[14]. - Noninterest expense for the three months ended March 31, 2022, was $46,839,000, compared to $44,511,000 in the same period of 2021, reflecting an increase of approximately 5.2%[105]. - Total other income for Q1 2022 was $1,476,000, a decrease of 25.3% compared to $1,974,000 in Q1 2021[86]. - Noninterest income for Q1 2022 was $20.0 million, representing 26.1% of total revenue, consistent with the prior year[164]. Credit Quality and Provisions - The allowance for credit losses decreased to $42,126 thousand as of March 31, 2022, from $42,843 thousand as of December 31, 2021, reflecting a reduction of 1.7%[12]. - The provision for credit losses was a credit of $520,000 for Q1 2022, compared to a credit of $1.8 million in Q1 2021[150]. - The company recognized a credit provision for credit loss expense of $(734) for the three months ended March 31, 2022[62]. - The company reported recoveries of $263 during the three months ended March 31, 2022[62]. - The company continues to monitor credit conditions carefully at the individual borrower level and by industry segment[143]. - The ratio of nonperforming assets to total assets was 0.38% at March 31, 2022, down from 0.40% at December 31, 2021[197]. Securities and Investments - Total available-for-sale debt securities as of March 31, 2022, were valued at $1,981,148,000, compared to $2,044,513,000 at December 31, 2021, indicating a decrease of approximately 3.1%[32]. - The company reported unrealized losses on available-for-sale debt securities of $127,048,000 as of March 31, 2022, compared to $32,903,000 at December 31, 2021, reflecting a significant increase in losses[32]. - The fair value of U.S. Treasuries was $178,903,000, reflecting unrealized losses of $12,094,000[34]. - The total held-to-maturity debt securities as of March 31, 2022, was $280,917,000, with unrealized losses of $22,607,000[35]. - The company’s securities portfolio was $2.3 billion, representing 29.0% of total assets, with a decrease in unrealized losses due to market interest rate changes[175]. Operational Changes - The company merged its four wholly-owned banking subsidiaries into Tompkins Community Bank effective January 1, 2022, streamlining operations[24]. - Tompkins Community Bank operates 63 banking offices, with 43 in New York and 20 in Pennsylvania[126]. - The Company aims for responsible and sustainable growth, including potential acquisitions of financial institutions and branches[125]. Regulatory and Compliance - Tompkins Financial Corporation is regulated under the Bank Holding Company Act and is subject to examination by the Federal Reserve Board[24]. - The company has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc., which is also subject to regulatory oversight[26]. - The capital ratios also surpassed the minimum required capital ratios for well-capitalized institutions[210].