Tompkins Financial Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Diluted earnings per share (EPS) were $2.00 for the third quarter of 2026, an increase of 21.2% ($0.35) year-over-year and a decrease of 2.0% ($0.04) from the second quarter of 2026.
• Net income for the third quarter was $28.7 million, up 21.0% ($5.0 million) from the third quarter of 2025 and down 2.2% ($650,000) from the prior quarter.
• Year-to-date diluted EPS were $5.86, up 29.6% from $4.52 in the same period of 2025; year-to-date net income totaled $84.0 million, up 29.6% from $64.8 million.
• Net interest income was $77.3 million for the quarter, up 4.5% from Q2 2026 and up 21.0% from Q3 2025; year-to-date net interest income was $223.1 million, up 23.5% from the prior year period.
• Net interest margin was 3.65% for the quarter, up 7 basis points from Q2 2026 and up 45 basis points from Q3 2025.
• Noninterest income was $12.6 million for the quarter, down 46.7% from Q3 2025, primarily due to the sale of the insurance subsidiary.
• Noninterest expense was $49.1 million for the quarter, down 8.8% from Q3 2025, driven by the elimination of expenses related to the sold insurance subsidiary.
• Provision for credit losses was $3.0 million for the quarter, up from $1.5 million in Q2 2026 and $2.5 million in Q3 2025.
• Net charge-offs were $1.2 million for the quarter, compared to $1.6 million in Q2 2026 and $1.1 million in Q3 2025.
• Total loans and leases were $6.72 billion at period end, up 6.9% from September 30, 2025.
• Total deposits were $7.4 billion at period end, up 5.0% from September 30, 2025.
• The allowance for credit losses was 0.90% of total loans and leases at September 30, 2026, down from 0.95% in September 2025.
• Nonperforming assets were $53.8 million, representing 0.60% of total assets.
• The effective income tax rate was 24.1% for the quarter and 24.1% year-to-date.

Guidance and Future Outlook:

• Management expressed confidence in consistent loan and deposit growth and expanding net interest margin as forward momentum drivers.
• No specific quantitative forward guidance for future quarters or full-year metrics was provided in the release.

Business Segments and Product Lines:

• Loan growth was primarily driven by the commercial real estate and commercial and industrial portfolios.
• Wealth management fees increased 6.8% in the quarter and 5.0% year-to-date.
• Service charges on deposit accounts increased 8.9% in the quarter and 3.3% year-to-date.
• Card service income increased 2.6% in the quarter and 2.7% year-to-date.
• Insurance revenue declined $11.3 million in the quarter and $32.5 million year-to-date following the sale of Tompkins Insurance Agencies, Inc. (TIA) in Q4 2025.
• Other income decreased 23.2% year-to-date, reflecting a gain on the sale of other real estate owned recognized in Q2 2025 that did not recur.

Market and Competitive Landscape:

• Average yield on securities increased 95 basis points year-over-year.
• Average yield on interest-earning assets increased 28 basis points year-over-year.
• Average cost of funds decreased 16 basis points year-over-year to 1.67%.
• The ratio of average noninterest-bearing deposits to average total deposits was 27.5% for the quarter.

Risks and Challenges:

• Special Mention and Substandard loans increased to $151.1 million from $140.0 million in the prior quarter, primarily due to two commercial real estate relationships.
• Management noted that collateral securing the downgraded credits remains sufficient to mitigate potential loss exposure.
• The press release includes a standard "Safe Harbor" statement regarding forward-looking statements and risks such as economic conditions, interest rates, regulatory changes, and geopolitical events.

Management Commentary and Tone:

• President and CEO Stephen Romaine stated the company is "pleased to report strong financial results" and highlighted momentum from loan/deposit growth and net interest margin expansion.
• Management cited the company's strength in earnings and capital position as the basis for approving a dividend increase.

Other Key Points:

• The Board approved a dividend increase of 13.8% compared to the fourth quarter of 2025, payable in the fourth quarter of 2026.
• The Company repurchased 18,118 shares of common stock for $1.8 million during the third quarter of 2026.
• Year-to-date share repurchases totaled 53,636 shares for $4.5 million under the 2025 Stock Repurchase Plan.
• Regulatory Tier 1 capital to average assets was 10.73% at September 30, 2026, up from 9.41% in September 2025.
• Total capital to risk-weighted assets was 14.89% at September 30, 2026, up from 13.27% in September 2025.
• The Company maintained ready access to liquidity of $1.5 billion, or 17.1% of total assets, at September 30, 2026.