EX-99.1 2 q12024pressrelease.htm EX-99.1 Document


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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 26, 2024

Tompkins Financial Corporation Reports 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 $1.18 for the first quarter of 2024, up 12.4% compared to the immediate prior quarter, and down 12.6% from diluted earnings per share of $1.35 reported in the first quarter of 2023.

Net income for the first quarter of 2024 was $16.9 million, up 12.5% compared to the immediate prior quarter, and down 13.0% from the $19.4 million reported for the same period in 2023. The decrease in net income from the first quarter of 2023 was mainly a result of lower net interest income, driven by increased funding costs and increased provision for credit loss expense. Decreases in net income were partially offset by growth in fee-based revenues and lower operating expenses year-over-year.

Tompkins President and CEO, Stephen Romaine, commented, "In the first quarter we saw positive earnings momentum and continue to be well positioned with strong capital and liquidity. For the quarter we saw continued loan growth with a year-over-year increase of 7.0%, moderation in deposit cost increases, and 8.5% growth in noninterest income. We remain focused on noninterest expenses, which were lower in the first quarter compared to prior year. As the industry challenges continue in light of the current economic environment, we plan to leverage the strength of our balance sheet and drive growth through quality customer relationships."

SELECTED HIGHLIGHTS FOR THE PERIOD:
•Net interest margin for the first quarter of 2024 was 2.73%, compared to 2.82% for the fourth quarter of 2023, and 2.99% for the first quarter of 2023.


•Average cost of deposits were up 11 basis points compared to the fourth quarter 2023, down from a 23 basis point increase from the third quarter to the fourth quarter 2023.
•Fee-based services (insurance, wealth management, service charges on deposit accounts and cards) revenues for the first quarter of 2024 were up $3.1 million or 18.4% compared to the fourth quarter of 2023, and $1.5 million or 8.1% over the first quarter of 2023.
•Total operating expenses of $49.9 million for the first quarter of 2024 were down $1.4 million or 2.8% compared to the compared to the fourth quarter of 2023, and $301,000 or 0.6% from the first quarter of 2023.
•Total loans at March 31, 2024 were up $34.6 million, or 0.6% (2.5% on an annualized basis), compared to the immediate prior quarter, and up $366.9 million, or 7.0%, from March 31, 2023.
•Total deposits at March 31, 2024 were $6.4 billion, up $49.8 million, or 0.8% (3.1% on an annualized basis), from December 31, 2023, and down $59.4 million, or 0.9%, from March 31, 2023.
•Loan to deposit ratio was 87.5%, compared to 87.6% for the immediate prior quarter.
•Regulatory Tier 1 capital to average assets was 9.08% at March 31, 2024, unchanged from December 31, 2023, and down compared to 9.63% at March 31, 2023.

NET INTEREST INCOME
Net interest income was $50.7 million for the first quarter of 2024, down from $52.4 million for the fourth quarter of 2023, and $54.2 million for the first quarter of 2023. Net interest income for the quarter ended March 31, 2024 was impacted by increases in interest expense, which totaled $32.5 million for the first quarter of 2024 compared to $15.0 million for the same period in 2023, partially offset by increased interest and dividend income, which increased by $13.9 million when compared to the first quarter of 2023.

Net interest margin was 2.73% for the first quarter of 2024, compared to 2.82% reported for the fourth quarter of 2023, and 2.99% for the first quarter of 2023. The decrease in margin from the fourth quarter of 2023 was due to higher funding costs, driven by market rates and higher borrowings due to seasonal deposit changes outpacing increases on interest earning asset yields and growth in average loan balances.

Average loans for the quarter ended March 31, 2024 were up $134.9 million, or 2.5%, from the fourth quarter of 2023, and were up $370.3 million, or 7.1%, compared to the quarter ended March 31, 2023. The increase in average loans over both prior periods was mainly in the commercial real estate portfolio. The average yield on interest-earning assets for the quarter ended March 31, 2024 was 4.47%, which was up from 4.34% for the quarter ended December 31, 2023, and up from 3.81% for the quarter ended March 31, 2023.

Average total deposits for the first quarter of 2024 were down $123.9 million, or 1.9%, compared to the fourth quarter of 2023, while period end balances were up $49.8 million or 0.8% compared to the fourth quarter of 2023 driven by seasonal deposit trends. Average deposits for the quarter were down $206.8 million, or 3.1%, compared to the same period in 2023. The decrease compared to the prior year was largely driven by inflation and persistent rate competition for deposits due to the current interest rate environment and tightening monetary policy. The cost of interest-bearing deposits of 2.17% for the first quarter of 2024, was up 13 basis points from


2.04% for the fourth quarter of 2023, and up 107 basis points from 1.10% for the first quarter of 2023. The ratio of average noninterest bearing deposits to average total deposits for the first quarter of 2024 was 28.8% compared to 29.6% for the fourth quarter of 2023, and 31.4% for the quarter ended March 31, 2023. The average cost of interest-bearing liabilities for the first quarter of 2024 of 2.51% represents an increase of 26 basis points over the fourth quarter of 2023, and an increase of 125 basis points over the same period in 2023.

NONINTEREST INCOME
Noninterest income of $22.1 million for the first quarter of 2024 was up $1.7 million or 8.5% compared to the same period in 2023. The increase was mainly due to increases in fee-based revenues which included insurance commissions and fees, up $750,000, wealth management fees, up $428,000 and card services income, up $257,000. Noninterest income represented 30.4% of total revenue at March 31, 2024, compared to 26.5% at December 31, 2023, and 27.3% at March 31, 2023.

NONINTEREST EXPENSE
Noninterest expense was $49.9 million for the first quarter of 2024, which was down $301,000 or 0.6% compared to the first quarter of 2023. The decrease was mainly driven by lower other expenses (legal fees, marketing expense, and travel and meeting expense) and lower salaries, wages and other employee benefits in the first quarter of 2024 compared to the same period in 2023.

INCOME TAX EXPENSE
The provision for income tax expense of $5.2 million for an effective rate of 23.5% for the first quarter of 2024, compared to tax expense of $3.1 million and an effective rate of 17.2% for the fourth quarter of 2023, and $5.9 million and an effective rate of 23.3% for the same quarter in 2023.

ASSET QUALITY
The allowance for credit losses represented 0.92% of total loans and leases at March 31, 2024, in line with December 31, 2023, and up from 0.87% at March 31, 2023. The ratio of the allowance to total nonperforming loans and leases was 82.47% at March 31, 2024, compared to 82.84% at December 31, 2023 and 162.11% at March 31, 2023. The decrease in the ratio compared to the same prior year period was due to the increase in nonperforming loans and leases discussed in more detail below.

Provision for credit losses for the first quarter of 2024 was $854,000 compared to a credit of $825,000 for the same period in 2023. The increase in provision expense for the first quarter of 2024 was mainly driven by increased off-balance sheet exposures related to growth in commercial loan pipeline, loan growth, and changes in asset quality. The provision credit in the first quarter of 2023 was largely driven by significant net recoveries. Net charge-offs for the first quarter of 2024 were $228,000 compared to net recoveries of $1.3 million reported for the same period in 2023.

Nonperforming assets represented 0.81% of total assets at March 31, 2024, up from 0.80% reported at December 31, 2023 and 0.37% at March 31, 2023. At March 31, 2024, nonperforming loans and leases totaled


$62.7 million, compared to $62.3 million at December 31, 2023 and $28.4 million at March 31, 2023. The increase in nonperforming loans at March 31, 2024 compared to the same period in 2023, was mainly due to the addition of one relationship with two commercial real estate properties totaling approximately $33.8 million included in the office space and mixed use properties portion of the commercial real estate portfolio during the fourth quarter of 2023. The Company believes that the existing collateral securing the loans is sufficient to cover the exposure as of March 31, 2024.

Special Mention and Substandard loans and leases totaled $118.7 million at March 31, 2024, compared to $123.1 million reported at December 31, 2023, and $85.6 million reported at March 31, 2023.

CAPITAL POSITION
Capital ratios at March 31, 2024 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.43% at March 31, 2024, compared to 13.36% at December 31, 2023, and 14.62% at March 31, 2023. The ratio of Tier 1 capital to average assets was 9.08% at March 31, 2024, unchanged from the most recent prior quarter, and down compared to 9.63% at March 31, 2023.

LIQUIDITY POSITION
The Company's liquidity position at March 31, 2024 was stable and consistent with the immediately prior quarter. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and Federal Home Loan Banks (FHLB) advances. The Company maintains ready access liquidity of $1.5 billion, or 19.3% of total assets at March 31, 2024. As a member of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At March 31, 2024 the Company had an available borrowing capacity at the FHLB of $773.4 million. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain loans and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At March 31, 2024 the available borrowing capacity with the Federal Reserve Bank was $138 million, secured by loans. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at March 31, 2024, the Company maintained $579.6 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.

ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.






"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", "commit", or "anticipate", the negative and other variations of these terms and other similar words. Examples of forward-looking statements may include statements regarding the sufficiency of existing collateral to cover exposure related to nonperforming loans, and the strength of our balance sheet. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements and historical performance. The following factors, in addition to those listed as Risk Factors in Item 1A in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and other sources of liquidity; gross domestic product growth and inflation trends; the impact of the interest rate and inflationary environment on the Company's business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and state and local government mandates; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; technological developments and changes; cybersecurity incidents and threats; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; the ability to access financial resources in the amounts, at the times, and on the terms required to support the Company's future businesses; and the economic impact of national and global events, including the response to bank failures, the wars in Ukraine and Israel, widespread protests, civil unrest, political uncertainty, and pandemics or other public health crises. The Company does not undertake any obligation to update its forward-looking statements.


TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data)As ofAs of
ASSETS03/31/202412/31/2023
(Audited)
Cash and noninterest bearing balances due from banks$47,236 $67,212 
Interest bearing balances due from banks9,905 12,330 
Cash and Cash Equivalents57,141 79,542 
Available-for-sale debt securities, at fair value (amortized cost of $1,511,471 at March 31, 2024 and $1,548,482 at December 31, 2023)1,366,355 1,416,650 
Held-to-maturity debt securities, at amortized cost (fair value of $265,102 at March 31, 2024 and $267,455 at December 31, 2023) 312,415 312,401 
Equity securities, at fair value 772 787 
Total loans and leases, net of unearned income and deferred costs and fees5,640,524 5,605,935 
Less: Allowance for credit losses51,704 51,584 
Net Loans and Leases5,588,820 5,554,351 
Federal Home Loan Bank and other stock30,103 33,719 
Bank premises and equipment, net78,158 79,687 
Corporate owned life insurance74,730 67,884 
Goodwill92,602 92,602 
Other intangible assets, net2,247 2,327 
Accrued interest and other assets174,691 179,799 
Total Assets$7,778,034 $7,819,749 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market3,646,960 3,484,878 
Time974,354 998,013 
Noninterest bearing1,828,302 1,916,956 
Total Deposits6,449,616 6,399,847 
Federal funds purchased and securities sold under agreements to repurchase43,681 50,996 
Other borrowings522,600 602,100 
Other liabilities92,799 96,872 
Total Liabilities$7,108,696 $7,149,815 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,440,029 at March 31, 2024; and 14,441,830 at December 31, 20231,444 1,444 
Additional paid-in capital297,790 297,183 
Retained earnings509,668 501,510 
Accumulated other comprehensive loss(134,816)(125,005)
Treasury stock, at cost – 123,577 shares at March 31, 2024, and 132,097 shares at December 31, 2023(6,180)(6,610)
Total Tompkins Financial Corporation Shareholders’ Equity667,906 668,522 
Noncontrolling interests1,432 1,412 
Total Equity$669,338 $669,934 
Total Liabilities and Equity$7,778,034 $7,819,749 


TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)Three Months Ended
03/31/202412/31/202303/31/2023
INTEREST AND DIVIDEND INCOME
Loans$71,599 $69,035 $60,842 
Due from banks154 227 139 
Available-for-sale debt securities9,611 9,717 6,743 
Held-to-maturity debt securities1,218 1,222 1,214 
Federal Home Loan Bank and other stock601 584 300 
Total Interest and Dividend Income83,183 $80,785 $69,238 
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more4,010 3,949 1,788 
Other deposits20,424 19,526 10,394 
Federal funds purchased and securities sold under agreements to repurchase13 14 14 
Other borrowings8,061 4,937 2,796 
Total Interest Expense32,508 28,426 14,992 
Net Interest Income50,675 52,359 54,246 
Less: Provision (credit) for credit loss expense854 1,761 (825)
Net Interest Income After Provision (credit) for Credit Loss Expense49,821 50,598 55,071 
NONINTEREST INCOME
Insurance commissions and fees10,259 7,773 9,509 
Wealth management fees4,937 4,422 4,509 
Service charges on deposit accounts1,796 1,773 1,746 
Card services income2,939 2,859 2,682 
Other income2,220 1,977 1,941 
Net (loss) gain on securities transactions(14)46 13 
Total Noninterest Income22,137 18,850 20,400 
NONINTEREST EXPENSE
Salaries and wages24,697 23,710 24,512 
Other employee benefits6,411 6,626 6,741 
Net occupancy expense of premises3,557 3,544 3,299 
Furniture and fixture expense2,125 2,425 2,054 
Amortization of intangible assets76 84 83 
Other operating expense12,991 14,911 13,469 
Total Noninterest Expenses49,857 51,300 50,158 
Income Before Income Tax Expense22,101 18,148 25,313 
Income Tax Expense5,198 3,114 5,901 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation16,903 15,034 19,412 
Less: Net Income Attributable to Noncontrolling Interests31 31 31 
Net Income Attributable to Tompkins Financial Corporation$16,872 15,003 19,381 
Basic Earnings Per Share$1.19 $1.06 $1.35 
Diluted Earnings Per Share$1.18 $1.05 $1.35 



Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter EndedQuarter Ended
March 31, 2024December 31, 2023
AverageAverage
BalanceAverageBalanceAverage
(Dollar amounts in thousands)(QTD)InterestYield/Rate(QTD)InterestYield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks$12,202 $154 5.08 %$14,351 $227 6.28 %
Securities (1)
U.S. Government securities1,756,122 10,303 2.36 %1,789,043 10,411 2.31 %
State and municipal (2)89,886 570 2.55 %90,070 574 2.53 %
Other securities3,278 60 7.32 %3,242 60 7.37 %
Total securities1,849,286 10,933 2.38 %1,882,355 11,045 2.33 %
FHLBNY and FRB stock34,613 601 6.99 %24,555 584 9.44 %
Total loans and leases, net of unearned income (2)(3)5,621,604 71,779 5.14 %5,486,715 69,197 5.00 %
Total interest-earning assets7,517,705 83,467 4.47 %7,407,976 81,053 4.34 %
Other assets283,420 259,006 
Total assets$7,801,125 $7,666,982 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market3,546,216 15,036 1.71 %3,643,919 14,915 1.62 %
Time deposits988,891 9,398 3.82 %925,790 8,560 3.67 %
Total interest-bearing deposits4,535,107 24,434 2.17 %4,569,709 23,475 2.04 %
Federal funds purchased & securities sold under agreements to repurchase48,779 13 0.10 %51,903 14 0.10 %
Other borrowings622,951 8,061 5.21 %398,932 4,937 4.91 %
Total interest-bearing liabilities5,206,836 32,508 2.51 %5,020,544 28,426 2.25 %
Noninterest bearing deposits1,831,244 1,920,510 
Accrued expenses and other liabilities96,292 103,648 
Total liabilities7,134,373 7,044,702 
Tompkins Financial Corporation Shareholders’ equity665,333 620,789 
Noncontrolling interest1,419 1,491 
Total equity666,752 622,280 
Total liabilities and equity$7,801,125 $7,666,982 
Interest rate spread1.95 %2.09 %
Net interest income/margin on earning assets50,959 2.73 %52,627 2.82 %
Tax Equivalent Adjustment(284)(268)
Net interest income per consolidated financial statements$50,675 $52,359 


Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter EndedQuarter Ended
March 31, 2024March 31, 2023
AverageAverage
BalanceAverageBalanceAverage
(Dollar amounts in thousands)(QTD)InterestYield/Rate(QTD)InterestYield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks$12,202 $154 5.08 %$12,733 $139 4.42 %
Securities (1)
U.S. Government securities1,756,122 10,303 2.36 %2,033,307 7,424 1.48 %
State and municipal (2)89,886 570 2.55 %93,201 599 2.60 %
Other securities3,278 60 7.32 %3,284 53 6.55 %
Total securities1,849,286 10,933 2.38 %2,129,792 8,076 1.54 %
FHLBNY and FRB stock34,613 601 6.99 %16,750 300 7.26 %
Total loans and leases, net of unearned income (2)(3)5,621,604 71,779 5.14 %5,251,278 61,034 4.71 %
Total interest-earning assets7,517,705 83,467 4.47 %7,410,553 69,549 3.81 %
Other assets283,420 223,240 
Total assets$7,801,125 $7,633,793 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market$3,546,216 $15,036 1.71 %$3,833,566 $8,641 0.91 %
Time deposits988,891 9,398 3.82 %673,871 3,541 2.13 %
Total interest-bearing deposits4,535,107 24,434 2.17 %4,507,437 12,182 1.10 %
Federal funds purchased & securities sold under agreements to repurchase48,779 13 0.10 %57,523 14 0.10 %
Other borrowings622,951 8,061 5.21 %269,752 2,796 4.20 %
Total interest-bearing liabilities5,206,836 32,508 2.51 %4,834,712 14,992 1.26 %
Noninterest bearing deposits1,831,244 2,065,701 
Accrued expenses and other liabilities96,292 102,172 
Total liabilities7,134,373 7,002,585 
Tompkins Financial Corporation Shareholders’ equity665,333 629,784 
Noncontrolling interest1,419 1,424 
Total equity666,752 631,208 
Total liabilities and equity$7,801,125 $7,633,793 
Interest rate spread1.95 %2.55 %
Net interest income/margin on earning assets50,959 2.73 %54,557 2.99 %
Tax Equivalent Adjustment(284)(311)
Net interest income per consolidated financial statements$50,675 $54,246 



Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-EndedYear-Ended
Period End Balance SheetMar-24Dec-23Sep-23Jun-23Mar-23Dec-23
Securities$1,679,542 $1,729,838 $1,701,636 $1,781,150 $1,899,001 $1,729,838 
Total Loans5,640,524 5,605,935 5,434,860 5,352,365 5,273,671 5,605,935 
Allowance for credit losses51,704 51,584 49,336 48,545 46,099 51,584 
Total assets7,778,034 7,819,749 7,691,162 7,626,238 7,644,371 7,819,749 
Total deposits6,449,616 6,399,847 6,623,436 6,454,651 6,509,009 6,399,847 
Federal funds purchased and securities sold under agreements to repurchase43,681 50,996 56,120 50,483 63,491 50,996 
Other borrowings522,600 602,100 296,800 387,100 327,000 602,100 
Total common equity667,906 668,522 610,851 634,967 648,322 668,522 
Total equity669,338 669,934 612,356 636,441 649,765 669,934 

Average Balance Sheet
Average earning assets$7,517,705 $7,407,976 $7,405,434 $7,409,714 $7,410,553 $7,408,404 
Average assets7,801,125 7,666,982 7,629,876 7,635,800 7,633,793 7,641,672 
Average interest-bearing liabilities5,206,836 5,020,544 4,902,930 4,883,026 4,834,712 4,910,792 
Average equity666,752 622,280 634,980 650,554 631,208 634,732 
Share data
Weighted average shares outstanding (basic)14,211,910 14,194,503 14,185,763 14,314,133 14,326,595 14,254,661 
Weighted average shares outstanding (diluted)14,238,357 14,246,024 14,224,748 14,346,787 14,389,673 14,301,221 
Period-end shares outstanding14,405,019 14,405,920 14,350,177 14,405,503 14,519,748 14,405,920 
Common equity book value per share$46.37 $46.41 $42.57 $44.08 $44.65 $46.41 
Tangible book value per share (Non-GAAP)**$39.85 $39.88 $36.01 $37.54 $38.16 $39.88 
**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$50,675 $52,359 $51,013 $51,896 $54,246 $209,514 
Provision (credit) for credit loss expense (5)854 1,761 1,150 2,253 (825)4,339 
Noninterest income22,137 18,850 (41,624)12,615 20,400 10,241 
Noninterest expense (5)49,857 51,300 49,866 51,968 50,158 203,292 
Income tax expense/(benefit)5,198 3,114 (8,304)1,784 5,901 2,495 
Net income/(loss) attributable to Tompkins Financial Corporation16,872 15,003 (33,354)8,475 19,381 9,505 
Noncontrolling interests31 31 31 31 31 124 
Basic earnings (loss) per share (4)1.19 1.06 (2.35)0.59 1.35 0.66 
Diluted earnings (loss) per share (4)1.18 1.05 (2.35)0.59 1.35 0.66 
Nonperforming Assets
Nonaccrual loans and leases$62,544 $62,165 $31,381 $31,333 $28,424 $62,165 
Loans and leases 90 days past due and accruing151 101 52 34 13 101 
Performing troubled debt restructuring*0 0 0 0 0 0 
Total nonperforming loans and leases62,695 62,266 31,433 31,367 28,437 62,266 
OREO0 131 0 36 36 131 
Total nonperforming assets$62,695 $62,397 $31,433 $31,403 $28,473 $62,397 
*No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023.


Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-EndedYear-Ended
Delinquency - Total loan and lease portfolioMar-24Dec-23Sep-23Jun-23Mar-23Dec-23
Loans and leases 30-89 days past due and
accruing$8,015 $4,210 $40,893 $20,255 $5,894 $4,210 
Loans and leases 90 days past due and accruing151 101 52 34 13 101 
Total loans and leases past due and accruing8,166 4,311 40,945 20,289 5,907 4,311 

Allowance for Credit Losses
Balance at beginning of period$51,584 $49,336 $48,545 $46,099 $45,934 $45,934 
Impact of adopting ASC 3260 0 0 0 64 64 
Provision (credit) for credit losses348 2,658 968 2,419 (1,180)$4,865 
Net loan and lease charge-offs (recoveries) 228 410 177 (27)(1,281)$(721)
Allowance for credit losses at end of period$51,704 $51,584 $49,336 $48,545 $46,099 $51,584 
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period$2,270 $3,167 $2,985 $3,151 $2,796 $2,796 
Provision (credit) for credit losses506 (897)182 (166)355 $(526)
Allowance for credit losses at end of period$2,776 $2,270 $3,167 $2,985 $3,151 $2,270 
Loan Classification - Total Portfolio
Special Mention$46,302 $50,368 $65,993 $56,305 $39,255 $50,368 
Substandard72,412 72,717 56,947 61,820 46,315 72,717 

Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases1.11 %1.11 %0.58 %0.59 %0.54 %1.11 %
Nonperforming assets/total assets0.81 %0.80 %0.41 %0.41 %0.37 %0.80 %
Allowance for credit losses/total loans and leases0.92 %0.92 %0.91 %0.91 %0.87 %0.92 %
Allowance/nonperforming loans and leases82.47 %82.84 %156.96 %154.76 %162.11 %82.84 %
Net loan and lease losses (recoveries) annualized/total average loans and leases0.02 %0.03 %0.01 %0.00 %(0.10)%(0.01)%
Capital Adequacy
Tier 1 Capital (to average assets)9.08 %9.08 %9.01 %9.57 %9.63 %9.08 %
Total Capital (to risk-weighted assets)13.43 %13.36 %13.46 %14.48 %14.62 %13.36 %
Profitability (period-end)
Return on average assets *0.87 %0.78 %(1.73)%0.45 %1.03 %0.12 %
Return on average equity *10.18 %9.56 %(20.84)%5.22 %12.45 %1.50 %
Net interest margin (TE) *2.73 %2.82 %2.75 %2.83 %2.99 %2.84 %
Average yield on interest-earning assets*4.47 %4.34 %4.06 %3.91 %3.81 %4.03 %
Average cost of deposits*1.54 %1.43 %1.20 %0.97 %0.75 %1.09 %
Average cost of funds*1.86 %1.62 %1.41 %1.16 %0.88 %1.27 %
* 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 principals (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 tables. 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-24Dec-23Sep-23Jun-23Mar-23Dec-23
Total common equity$667,906 $668,522 $610,851 $634,967 $648,322 $668,522 
Less: Goodwill and intangibles93,92694,00394,08694,16994,25394,003 
Tangible common equity (Non-GAAP)573,980 574,519 516,765 540,798 554,069 574,519 
Ending shares outstanding14,405,019 14,405,920 14,350,177 14,405,503 14,519,748 14,405,920 
Tangible book value per share (Non-GAAP)$39.85 $39.88 $36.01 $37.54 $38.16 $39.88 

(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 2024 and 2023 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, 2023.
(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.
(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.