Tompkins Financial(TMP) - 2025 Q4 - Annual Results

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]