Tompkins Financial Corp. reported diluted earnings per share of $1.65 for the third quarter of 2025, up 10.0% from the immediate prior quarter, and up 26.9% from the diluted earnings per share of $1.30 reported for the third quarter of 2024. Net income for the third quarter of 2025 was $23.7 million, up $2.2 million, or 10.3%, compared to the second quarter of 2025, and up $5.0 million, or 27.0%, when compared to the third quarter of 2024.

For the nine months ended September 30, 2025, diluted earnings per share were $4.52, up 25.9% from the $3.59 reported for the nine months ended September 30, 2024. Year-to-date net income was $64.8 million for the nine months ended September 30, 2025, up $13.6 million or 26.6% when compared to $51.2 million for the same nine month period in 2024.

Tompkins President and CEO, Stephen Romaine, commented, “Our third quarter financial results highlight the strength of our team and balance sheet. Net income was up 27.0% in the third quarter of 2025 as compared to the same quarter in the prior year. Our performance was driven by continued net interest margin expansion along with loan and deposit growth of 7%. Our improved earnings reflected the results of investments in our business, as expenses for the 2025 year-to-date period were up over 4% compared to the prior year period. We believe we remain well positioned to continue to support growth, build quality customer relationships and support our local communities.”

SELECTED HIGHLIGHTS FOR THE PERIOD:

• Net interest margin improved to 3.20% in the third quarter of 2025, up 12 basis points from the immediate prior quarter, and up 41 basis points from the third quarter of 2024.
• Total loans at September 30, 2025 were up $115.4 million, or 1.9% compared to June 30, 2025 (7.5% on an annualized basis), and up $406.8 million, or 6.9%, from September 30, 2024.
• Total deposits at September 30, 2025 were $7.1 billion, up $337.3 million, or 5.0% compared to the most recent prior quarter end, and up $475.2 million, or 7.2%, from September 30, 2024.
• Total average cost of funds of 1.83% for the third quarter of 2025 was down 1 basis point compared to the most recent prior quarter, and down 18 basis points compared to the same period of the prior year.
• Provision expense for the third quarter of 2025 was $2.5 million, compared to $2.8 million for the second quarter of 2025 and $2.2 million for the third quarter of 2024.
• Loan to deposit ratio at September 30, 2025 was 89.2%, compared to 91.9% at June 30, 2025, and 89.4% at September 30, 2024.
• Regulatory Tier 1 capital to average assets was 9.41% at September 30, 2025, up compared to 9.36% at June 30, 2025, and 9.19% at September 30, 2024.

Net interest income was $63.9 million for the third quarter of 2025, up $3.7 million or 6.2% compared to the second quarter of 2025, and up $10.7 million or 20.1% compared to the third quarter of 2024. The increase in net interest income compared to both periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.

For the nine months ended September 30, 2025, net interest income was $180.7 million, up $25.8 million or 16.7% when compared to the same period in 2024.

Net interest margin was 3.20% for the third quarter of 2025, up 12 basis points when compared to the immediate prior quarter, and up 41 basis points from 2.79% for the third quarter of 2024. The increase in net interest margin, when compared to the most recent prior quarter, was mainly due to increased yields on average interest earning assets and higher average loan balances. The increase over the prior year third quarter was due to the same factors, as well as lower funding costs resulting from improved funding mix.

Average loans for the quarter ended September 30, 2025 were up $86.8 million, or 1.4%, from the most recent prior quarter, and were up $385.5 million, or 6.6%, compared to the same prior year period. The increase in average loans over both prior periods was mainly in the commercial real estate and commercial and industrial portfolios. The average yield on interest-earning assets for the quarter ended September 30, 2025 was 4.90%, an increase of 11 basis points from 4.79% for the quarter ended June 30, 2025, and up 24 basis points from 4.66% for the quarter ended September 30, 2024.

Average total deposits of $6.8 billion for the third quarter of 2025 were up $116.7 million, or 1.7%, compared to the second quarter of 2025, and up $481.8 million, or 7.6%, compared to the third quarter of 2024. The cost of interest-bearing deposits of 2.26% for the third quarter of 2025 was up 2 basis points compared to the most recent prior quarter, and down 9 basis points from 2.35% for the third quarter of 2024. The ratio of average noninterest bearing deposits to average total deposits for the third quarter of 2025 was 27.6% compared to 27.0% for the second quarter of 2025, and 28.9% for the third quarter of 2024. The average cost of interest-bearing liabilities for the third quarter of 2025 was 2.45%, up 1 basis point when compared to the most recent prior quarter, and down 26 basis points from the same period in 2024.

NONINTEREST INCOME
Noninterest income of $23.6 million for the third quarter of 2025 was up $179,000 or 0.8% compared to the third quarter of 2024, mainly due to an increase in the gain on the sale of loans, which was up $202,000 or 52.2% compared to the same period in 2024. Year-to-date noninterest income of $71.1 million was up $3.8 million or 5.7% compared to the same period in 2024, mainly due to a $2.1 million, or 28.7% increase in other income, which included a $1.9 million gain on the sale of other real estate owned, and an increase in insurance commissions and fees of $1.9 million or 6.1%. The increase for the year-to-date period also included an increase in wealth management fees of $351,000 or 2.4%. These increases were partially offset by a decrease in card services income, which was down $471,000 or 5.2%. Card services income in 2024 included a $255,000 sign-on bonus related to the renewal of a card services contract.

NONINTEREST EXPENSE
Noninterest expense was $53.8 million for the third quarter of 2025, up $4.0 million or 8.0% compared to the same period in 2024. Noninterest expense for the year-to-date period ended September 30, 2025 was $156.1 million, an increase of $6.4 million or 4.3% compared to the $149.7 million reported for the same period in 2024. Increases for both periods over the prior year periods reflected higher personnel-related expenses, which were up $1.7 million or 5.4% for the third quarter of 2025, and up $4.7 million or 5.0% for the year-to-date period ended September 30, 2025, and other operating expense, up $2.1 million or 16.2% for the third quarter of 2025, and up $1.7 million or 4.3% for the year-to-date period ended September 30, 2025. The increase in other operating expenses reflects investments in support of future growth.

INCOME TAX EXPENSE
Provision for income tax expense was $7.4 million for an effective rate of 23.9% for the third quarter of 2025, compared to $5.9 million for an effective rate of 23.9% for the third quarter of 2024. For the nine months ended September 30, 2025, the provision for income tax expense was $20.3 million and the effective tax rate was 23.9% compared to $16.0 million for an effective tax rate of 23.7% for the same period in 2024.

ASSET QUALITY
The allowance for credit losses represented 0.95% of total loans and leases at September 30, 2025, unchanged from the most recent prior quarter, and up from 0.94% reported at September 30, 2024. The increase in the allowance for credit losses coverage ratio compared to September 30, 2024 was mainly due to updated economic forecasts for unemployment and gross domestic product for the quarter, as well as updated model assumptions based on the annual model review. The ratio of the allowance to total nonperforming loans and leases was 113.06% at September 30, 2025, compared to 111.55% at June 30, 2025, and 88.51% at September 30, 2024. The increase in the ratio compared to the third quarter of 2024 was due to the decrease in nonperforming loans and leases, discussed in more detail below.

Provision for credit losses for the third quarter of 2025 was $2.5 million compared to $2.2 million for the third quarter of 2024. Provision for credit losses for the nine months ended September 30, 2025 was $10.6 million compared to $5.2 million for the nine months ended September 30, 2024. The increase in provision expense for the year-to-date period compared to the same period in 2024 was mainly driven by a charge-off of $4.7 million in the second quarter of 2025 on a commercial real estate relationship totaling $18.1 million. Net charge-offs for the three months ended September 30, 2025 were $1.1 million, compared to $5.3 million for the second quarter of 2025, and $912,000 for the third quarter of 2024. The decrease in net charge-offs compared to the second quarter of 2025 was mainly related to the $4.7 million charge-off discussed above.

Nonperforming assets of $53.0 million represented 0.63% of total assets at September 30, 2025, in line with June 30, 2025, and down from $62.7 million or 0.78% at September 30, 2024. The decrease in nonperforming assets at September 30, 2025 compared to the same period in 2024 was largely due to one nonperforming commercial real estate loan totaling $14.2 million moving into other real estate owned during the fourth quarter of 2024, and subsequently being sold in the first quarter of 2025. Loans past due 30-89 days totaled $7.8 million at September 30, 2025, $5.9 million at June 30, 2025, and $7.0 million at September 30, 2024.

Special Mention and Substandard loans and leases totaled $144.2 million at September 30, 2025, compared to $96.8 million reported at June 30, 2025, and $126.0 million reported at September 30, 2024. The increase was mainly a result of two loans totaling $41.2 million being downgraded to Special Mention during the third quarter of 2025. The Company believes that the existing collateral and pledged investments securing the loans are sufficient to cover the exposure.

CAPITAL POSITION
Capital ratios at September 30, 2025 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 13.27% at September 30, 2025, compared to 13.15% at June 30, 2025, and 13.21% at September 30, 2024. The ratio of Tier 1 capital to average assets was 9.41% at September 30, 2025, compared to 9.36% at June 30, 2025, and 9.19% at September 30, 2024.

LIQUIDITY POSITION
The Company’s liquidity position at September 30, 2025 was stable and consistent with its position at June 30, 2025. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank’s Discount Window advances and Federal Home Loan Bank (FHLB) advances. The Company maintained ready access to liquidity of $1.5 billion, or 17.8% of total assets, at September 30, 2025.

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 and Tompkins Insurance Agencies, Inc. Tompkins Community Bank provides a full array of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning services. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

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