Tompkins Financial Q2 Net Income Jumps 37% on Strong Loan Growth

TL;DR

**Tompkins Financial is a buy, with strong loan growth and surging net income, but keep an eye on rising credit loss provisions.**

AI Summary

Tompkins Financial Corporation (TMP) reported a significant increase in net income attributable to the company, reaching $21.47 million for the three months ended June 30, 2025, up from $15.68 million in the prior year, representing a 36.9% increase. For the six months ended June 30, 2025, net income rose to $41.15 million, a 26.4% increase from $32.55 million in the same period of 2024. Total interest and dividend income increased to $93.65 million for the three-month period and $183.11 million for the six-month period, driven primarily by a rise in loan interest income to $82.29 million and $160.92 million, respectively. Net interest income after provision for credit loss expense also saw substantial growth, reaching $57.35 million for the quarter and $108.73 million for the six months. The provision for credit loss expense increased to $2.78 million for the quarter and $8.07 million for the six months, indicating a more cautious outlook on credit quality. Total assets grew to $8.37 billion as of June 30, 2025, from $8.11 billion at December 31, 2024, with net loans and leases increasing to $6.11 billion from $5.96 billion. Total deposits also increased to $6.72 billion from $6.47 billion, reflecting strong customer acquisition and retention. The company's equity strengthened to $761.79 million from $713.44 million, partly due to a reduction in accumulated other comprehensive loss.

Why It Matters

Tompkins Financial's robust net income growth and expanding asset base signal a healthy regional bank performance, which is crucial for investors seeking stability and dividend income in a volatile market. The increase in net loans and leases, alongside higher deposits, suggests effective competitive positioning against larger national banks and other regional players. This growth supports local economies through increased lending, benefiting employees and customers. However, the rising provision for credit losses warrants attention, as it could indicate management's anticipation of future credit quality challenges, potentially impacting future profitability and investor returns if economic conditions deteriorate.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in the provision for credit loss expense, which rose to $8.07 million for the six months ended June 30, 2025, compared to $3.03 million in the prior year. This 166% increase suggests management anticipates potential credit quality deterioration, despite overall strong financial performance. Additionally, the amendment filing itself, though minor, highlights the importance of regulatory compliance and accuracy.

Analyst Insight

Investors should consider Tompkins Financial's strong earnings and asset growth as a positive indicator, but closely monitor future credit loss provisions and economic indicators. A deeper dive into the loan portfolio's composition and potential vulnerabilities, especially in commercial real estate, would be prudent to assess the sustainability of current performance.

Financial Highlights

debt To Equity

9.99

revenue

$93,646,000

operating Margin

N/A

total Assets

$8,373,818,000

total Debt

$799,807,000

net Income

$21,470,000

eps

$1.51

gross Margin

N/A

cash Position

$212,551,000

revenue Growth

+9.9%

Revenue Breakdown

Key Numbers

• $21.47M — Net Income Attributable to Tompkins Financial Corporation (Q2 2025) (Increased 36.9% from $15.68 million in Q2 2024)
• $41.15M — Net Income Attributable to Tompkins Financial Corporation (YTD Q2 2025) (Increased 26.4% from $32.55 million in YTD Q2 2024)
• $8.37B — Total Assets (June 30, 2025) (Increased from $8.11 billion at December 31, 2024)
• $6.11B — Net Loans and Leases (June 30, 2025) (Increased from $5.96 billion at December 31, 2024)
• $6.72B — Total Deposits (June 30, 2025) (Increased from $6.47 billion at December 31, 2024)
• $8.07M — Provision for Credit Loss Expense (YTD Q2 2025) (Increased 166% from $3.03 million in YTD Q2 2024)
• $1.51 — Basic Earnings Per Share (Q2 2025) (Increased from $1.10 in Q2 2024)
• $2.89 — Basic Earnings Per Share (YTD Q2 2025) (Increased from $2.29 in YTD Q2 2024)
• $761.79M — Total Equity (June 30, 2025) (Increased from $713.44 million at December 31, 2024)
• 14,431,575 — Shares Outstanding (August 1, 2025) (Reflects the total number of common stock shares)

Key Players & Entities

• Tompkins Financial Corporation (company) — Registrant and parent company
• Tompkins Community Bank (company) — Wholly-owned banking subsidiary
• Tompkins Insurance Agencies, Inc. (company) — Wholly-owned insurance agency subsidiary
• Federal Reserve Board (regulator) — Regulates Tompkins Financial Corporation
• SEC (regulator) — Regulates Tompkins Financial Corporation for disclosure and regulatory requirements
• FDIC (regulator) — Regulates Tompkins Community Bank
• NYSDFS (regulator) — Regulates Tompkins Community Bank and Tompkins Insurance
• NYSE American (company) — Exchange where TMP common stock is traded
• Ithaca, New York (location) — Headquarters of Tompkins Financial Corporation

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The company's net loans and leases increased to $6.11 billion. The provision for credit loss expense rose significantly to $2.78 million for the quarter and $8.07 million year-to-date, indicating potential concerns about the creditworthiness of borrowers and the need for higher reserves.
• Interest Rate Sensitivity [medium — market]: Fluctuations in interest rates can impact net interest income. While interest income grew, the company must manage the cost of its deposits and borrowings effectively to maintain net interest margin.
• Regulatory Compliance [medium — regulatory]: As a financial institution, Tompkins Financial Corporation is subject to extensive regulation. Changes in regulatory requirements or failure to comply can lead to fines, penalties, and reputational damage.
• Cybersecurity and Data Breaches [medium — operational]: The increasing reliance on technology and digital platforms exposes the company to risks of cyberattacks and data breaches, which could result in financial losses and damage to customer trust.

Industry Context

The banking industry is currently navigating a complex environment characterized by evolving interest rate policies, increasing digital adoption, and heightened regulatory scrutiny. Competition remains fierce, with traditional banks, credit unions, and fintech companies vying for market share. Deposit growth is crucial for funding loan portfolios, while managing credit risk and operational efficiency are key to sustained profitability.

Regulatory Implications

Tompkins Financial Corporation, like all financial institutions, operates under a stringent regulatory framework. Compliance with capital requirements, consumer protection laws, and anti-money laundering regulations is paramount. Any shifts in monetary policy or new regulatory mandates could impact the company's operations and profitability.

What Investors Should Do

1. Monitor loan growth and credit quality trends.
2. Analyze net interest margin trends.
3. Assess the impact of economic conditions on the loan portfolio.

Key Dates

• 2025-06-30: Quarter and Year-to-Date Financial Results — Reported significant increases in net income, total assets, loans, and deposits, indicating strong operational performance.
• 2025-12-31: Prior Year Audited Financials — Provides a baseline for comparison of asset and liability growth.

Glossary

Provision for Credit Loss Expense

An expense set aside by a financial institution to cover potential losses from loans that may not be repaid. (An increase in this provision, as seen in the filing, suggests a more conservative outlook on loan portfolio quality.)

Accumulated Other Comprehensive Loss

A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translations that have not yet been realized. (A reduction in this item contributed to the strengthening of the company's equity.)

Net Interest Income

The difference between the interest income generated by a bank and the interest it pays out to depositors and lenders. (This is a core measure of a bank's profitability, and it showed substantial growth for Tompkins Financial.)

Available-for-sale debt securities

Investments in debt securities that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (These securities represent a significant portion of the company's investment portfolio.)

Held-to-maturity debt securities

Investments in debt securities that the issuer has the intent and ability to hold until maturity. They are reported at amortized cost. (These securities provide a stable, albeit less liquid, stream of income.)

Year-Over-Year Comparison

Compared to the prior year, Tompkins Financial Corporation has demonstrated robust growth in net income, with a 36.9% increase for the quarter and 26.4% year-to-date. Total assets and net loans and leases have expanded, alongside a healthy increase in total deposits. While revenue from interest and dividends has grown, the provision for credit losses has also seen a substantial rise, indicating a more cautious approach to credit risk management.

Key Financial Figures

• $0.10 — ange on which registered Common Stock, $0.10 par value TMP NYSE American, LLC Indi
• $250,000 — PENSE Time certificates of deposits of $250,000 or more 4,140 4,048 8,647 8,058 Other

Filing Documents

• tmp-20250630.htm (10-Q/A) — 3639KB
• tmpex3112025-06x30.htm (EX-31.1) — 12KB
• tmpex3122025-06x30.htm (EX-31.2) — 12KB
• tmpex3212025-06x30.htm (EX-32.1) — 6KB
• tmpex3222025-06x30.htm (EX-32.2) — 6KB
• tmp-20250630_g1.jpg (GRAPHIC) — 752KB
• 0001005817-25-000110.txt ( ) — 19507KB
• tmp-20250630.xsd (EX-101.SCH) — 46KB
• tmp-20250630_cal.xml (EX-101.CAL) — 132KB
• tmp-20250630_def.xml (EX-101.DEF) — 344KB
• tmp-20250630_lab.xml (EX-101.LAB) — 756KB
• tmp-20250630_pre.xml (EX-101.PRE) — 591KB
• tmp-20250630_htm.xml (XML) — 4822KB

-FINANCIAL INFORMATION

PART I -FINANCIAL INFORMATION PAGE Item 1 –

Financial Statements

Financial Statements Consolidated Statements of Condition as of June 30, 2025 (Unaudited) and December 31, 2024 (Audited) 1 Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2025 and 2024 (Unaudited) 6 Notes to Unaudited Consolidated Financial Statements 8 Item 2 -

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 3 -

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4 -

Controls and Procedures

Controls and Procedures 61

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1 –

Legal Proceedings

Legal Proceedings 61

– Risk Factors

Item 1A – Risk Factors 61 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3 - Defaults Upon Senior Securities 62 Item 4 - Mine Safety Disclosures 62 Item 5 - Other Information 62 Item 6 - Exhibits 63

SIGNATURES

SIGNATURES 64 Glossary of Abbreviations and Acronyms The acronyms and abbreviations identified below are used throughout this report, including the Notes to Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report. All references in the glossary to laws are to those laws as amended from time to time. Term Definition ACL Allowance for credit losses AFS Available for sale ASC Accounting Standards Codification ASU Accounting Standards Update BHC Act Bank Holding Company Act of 1956 BOLI Bank owned life insurance CECL Current Expected Credit Losses CRE Commercial real estate DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ECL Expected credit losses ESOP Employee Stock Ownership Plan Exchange Act Securities Exchange Act of 1934 FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank FHLBNY Federal Home Loan Bank of New York FHLMC Federal Home Loan Mortgage Corporation FRB Federal Reserve Board GAAP U.S. Generally Accepted Accounting Principles HTM Held to maturity NYSDFS New York State Department of Financial Services OREO Other real estate owned PCA Prompt corrective action PCD Purchased with credit deterioration PCI Purchased credit impaired ROU Right-of-use Sarbanes-Oxley Sarbanes-Oxley Act of 2002 SBIC Small business investment companies SEC Securities and Exchange Commission Securities Act Securities Act of 1933 SERP Supplemental employee retirement plan SONYMA State of New York Mortgage Agency TDR Troubled debt restructuring Tompkins Annual Report Tompkins Annual Report on Form 10-K for the year ended December 31, 2024 Tompkins Insurance Tompkins Insurance Agencies, Inc. Tompkins or the Company Tompkins Financial Corporation

Financial Statements

Item 1. Financial Statements TOMPKINS FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (In thousands, except share and per share data) (Unaudited) As of As of ASSETS 06/30/2025 12/31/2024 (unaudited) (audited) Cash and noninterest bearing balances due from banks $ 93,731 $ 53,635 Interest bearing balances due from banks 118,820 80,763 Cash and Cash Equivalents 212,551 134,398 Available-for-sale debt securities, at fair value (amortized cost of $ 1,380,080 at June 30, 2025 and $ 1,367,123 at December 31, 2024) 1,275,370 1,231,532 Held-to-maturity debt securities, at amortized cost (fair value of $ 278,948 at June 30, 2025 and $ 267,295 December 31, 2024) 312,493 312,462 Equity securities, at fair value 784 768 Total loans and leases, net of unearned income and deferred costs and fees 6,172,654 6,019,922 Less: Allowance for credit losses 58,555 56,496 Net Loans and Leases 6,114,099 5,963,426 Federal Home Loan Bank and other stock 37,129 42,255 Bank premises and equipment, net 74,408 76,627 Corporate owned life insurance 76,835 76,448 Goodwill 92,602 92,602 Other intangible assets, net 2,237 2,203 Accrued interest and other assets 175,310 176,359 Total Assets 8,373,818 8,109,080 LIABILITIES Deposits: Interest bearing: Checking, savings and money market 3,616,117 3,558,946 Time 1,225,941 1,068,375 Noninterest bearing 1,873,737 1,844,484 Total Deposits 6,715,795 6,471,805 Federal funds purchased and securities sold under agreements to repurchase 127,111 37,036 Other borrowings 672,696 790,247 Other liabilities 96,423 96,548 Total Liabilities 7,612,025 7,395,636 EQUITY Tompkins Financial Corporation shareholders' equity: Common Stock - par value $ 0.10 per share: Authorized 25,000,000 shares; Issued: 14,461,505 at June 30, 2025; and 14,468,013 at December 31, 2024 1,447 1,447 Additional paid-in capital 300,001 300,073 Retained earnings 560,385 537,157 Accumulated other comprehensive loss ( 95,115 ) ( 118,492 ) Treas

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