TOMPKINS FINANCIAL CORP
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
TMP$99.44-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001005817-25-000020
Item 2. -Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-28.
0001005817-25-000040
Item 2. -Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 135 previous paragraphs and 133 current paragraphs.
63 unchanged; 65 reworded; 4 added; 5 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Noninterest expense of $42.7 million for the three months ended September 30, 2025, increased by $3.5 million or 9.0% compared to the same period in 2024. The increase was primarily driven by professional fees, up $1.7 million, and salaries and employee benefits, up $1.4 million. For the nine months ended September 30, 2025 noninterest expense of $122.8 million was up $4.6 million, or 3.9% compared to the same period in 2024. The increase was primarily driven by salaries and employee benefits, up $3.5 million, and professional fees, up $1.9 million. These increases were partially offset by a decrease in technology expense, down $1.2 million.
Current report
Noninterest income of $23.6 million for the three months ended September 30, 2025, was in line with the three months ended September 30, 2024, and noninterest income of $71.1 million was up $3.8 million, or 5.7%, from the nine months ended September 30, 2024. The increase in year-to-date noninterest income compared to the nine months ended September 30, 2024, was mainly attributable to a $1.9 million gain on the sale of OREO.
Current report
Other operating expenses for the three and nine months ended September 30, 2025 were up $2.1 million, or 16.2%, and $1.7 million, or 4.3%, respectively, from the same periods in 2024. Other operating expense for the third quarter and year-to-date period included an increase in professional fees of $1.6 million and $1.8 million, respectively, primarily related to investments to support future growth, and an increase in marketing expense of $768,000 and $821,000, respectively.
Current report
At September 30, 2025, the Company estimated total uninsured deposits of $2.9 billion. These uninsured deposit balances of $2.9 billion included $1.1 billion of collateralized government deposits, and $1.8 billion of uninsured deposits without liquid collateral pledged.
Removed paragraphs (5)
Previous report
Recent Developments
Previous report
Noninterest expense of $40.4 million and $80.1 million for the three and six months ended June 30, 2025, respectively, were up $779,000, or 2.0%, and $1.1 million, or 1.4%, respectively, from the same periods in 2024. The increases in noninterest expense for the three and six months ended June 30, 2025 from the same periods in 2024, were mainly attributable to other salaries and employee benefits, up $1.4 million and $2.2 million, respectively. These increases were partially offset by a decrease in technology expense, down $613,000 and $1.3 million, respectively for the three and six months ended June 30, 2025, compared to the same periods in 2024.
Previous report
Noninterest expense for the six months ended June 30, 2025 was up $590,000, or 7.8%, compared to the same period prior year, mainly attributable to salaries and employee benefits, technology, and marketing.
Previous report
Noninterest income of $22.5 million and $47.5 million for the three and six months ended June 30, 2025, was up $736,000, or 3.4% and $3.6 million, or 8.3%, respectively, from the same periods in 2024. The increase in quarterly and year-to-date noninterest income compared to the three and six months ended June 30, 2024, was mainly driven by insurance commissions and fees and other income.
Previous report
The increase in the allowance for credit losses from year-end 2024 reflects loan growth, mainly in commercial real estate and commercial loans, as well as updated economic forecasts for unemployment and gross domestic product for the quarter and increased qualitative reserves for commercial and industrial loans related to asset quality metrics. During the second quarter of 2025, the Company recorded a partial charge-off of $4.7 million related to one commercial real estate relationship totaling $18.1 million, for which there was a specific reserve of $4.2 million. The specific reserve was added in the first quarter of 2025 and reflected the estimated decrease in fair value of the collateral based on a new appraisal received at the end of that quarter. Subsequent to the partial charge-off that decreased the net value of the underlying collateral to fair value, interests in the underlying real property collateral were transferred to a limited liability company in which the Company holds a minority interest. At June 30, 2025, the property was majority occupied by commercial tenants, and was generating positive cash flow. The Company's investment in the limited liability company is accounted for as an equity method investment and included in other assets on the Company's Consolidated Statements of Condition.
Reworded paragraphs (65)
Previous wording
The following discussion is intended to provide an understanding of the consolidated financial condition and results of operations of the Company for the three and six months ended June 30, 2025. It should be read in conjunction with the Company’s Audited Consolidated Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Unaudited Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.
Current wording
The following discussion is intended to provide an understanding of the consolidated financial condition and results of operations of the Company for the three and nine months ended September 30, 2025. It should be read in conjunction with the Company’s Audited Consolidated Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Unaudited Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.
Previous wording
This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this Report 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", as well as the negative and other variations of these terms, and other similar words. Examples of forward-looking statements may include statements regarding the asset quality of the Company's loan portfolios; the level of the Company's allowance for credit losses; the sufficiency of liquidity sources; the Company's exposure to changes in interest rates, and to new, changed, or extended government/regulatory expectations; the need to sell securities before recovery of amortized cost; the impact of changes in accounting standards; and trends, plans, prospects, growth and strategies. 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 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, are among those that could cause actual results to differ materially from the forward-looking statements and historical performance: 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 public companies, banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and other federal, 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; changes in supervisory and regulatory scrutiny of financial institutions, 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…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this Report 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", as well as the negative and other variations of these terms, and other similar words. Examples of forward-looking statements may include statements regarding the asset quality of the Company's loan portfolios; the level of the Company's allowance for credit losses; the sufficiency of collateral to cover exposure related to special mention and substandard loans; the sufficiency of liquidity sources; the Company's exposure to changes in interest rates, and to new, changed, or extended government/regulatory expectations; the need to sell securities before recovery of amortized cost; the impact of changes in accounting standards; and trends, plans, prospects, growth and strategies. 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 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, are among those that could cause actual results to differ materially from the forward-looking statements and historical performance: 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 public companies, banks, bank holding companies and/or financial holding companies, including the Dodd-Frank Act, and other federal, 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; changes in supervisory and regulatory scrutiny of financial institutions, technological developments and changes; cybersecurity incidents and threats; the ability to continue to introduce competitive new products and services …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
•Accounting for credit losses - The Company accounts for the allowance for credit losses using the current expected credit loss model. Under this model, the allowance for credit losses represents a valuation account that is deducted from the amortized cost basis of certain financial assets, including loans and leases, to present the net amount expected to be collected at the balance sheet date. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. For certain loan pools that share similar risk characteristics, the Company utilizes statistically developed models to estimate amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers' abilities to repay obligations. Such models consider historical correlations of credit losses with various macroeconomic assumptions including unemployment and gross domestic product. These forecasts may be adjusted for inherent limitations or biases of the models. Subsequent to the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. Changes in the circumstances considered when determining management's estimates and assumptions could result in changes in those estimates and assumptions, which could result in adjustment of the allowance for credit losses in future periods. A discussion of facts and circumstances considered by management in determining the allowance for credit losses is included in Note 5 - "Allowance for Credit Losses" in the Notes to the Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Current wording
•Accounting for credit losses - The Company accounts for the allowance for credit losses using the current expected credit loss model. Under this model, the allowance for credit losses represents a valuation account that is deducted from the amortized cost basis of certain financial assets, including loans and leases, to present the net amount expected to be collected at the balance sheet date. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. For certain loan pools that share similar risk characteristics, the Company utilizes statistically developed models to estimate amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers' abilities to repay obligations. Such models consider historical correlations of credit losses with various macroeconomic assumptions including unemployment and gross domestic product. These forecasts may be adjusted for inherent limitations or biases of the models. Subsequent to the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans.
Previous wording
Net income for the second quarter of 2025 was $21.5 million, or $1.50 diluted earnings per share, compared to $15.7 million, or $1.10 diluted earnings per share for the second quarter of 2024. Net income for the first six months of 2025 was $41.2 million, or $2.87 diluted earnings per share, compared to $32.6 million, or $2.29 diluted earnings per share for the first six months of 2024. The increase in net income and diluted earnings per share for the three and six months ended June 30, 2025 compared to the same periods in 2024 largely reflects increases in our net interest margin as well as continued loan growth.
Current wording
Net income for the third quarter of 2025 was $23.7 million, or $1.65 diluted earnings per share, compared to $18.6 million, or $1.30 diluted earnings per share for the third quarter of 2024. Net income for the nine months ended September 30, 2025 was $64.8 million, or $4.52 diluted earnings per share, compared to $51.2 million, or $3.59 diluted earnings per share for the same period in 2024. The increase in net income and diluted earnings per share for the three and nine months ended September 30, 2025 compared to the same periods in 2024 largely reflects increases in our net interest margin as well as continued loan growth.
Previous wording
Return on average assets ("ROA") for the quarter ended June 30, 2025 was 1.05%, compared to 0.81% for the quarter ended June 30, 2024. Return on average shareholders’ equity ("ROE") for the second quarter of 2025 was 11.48%, compared to 9.51% for the second quarter of 2024. For the year-to-date period ended June 30, 2025, ROA and ROE totaled 1.02% and 11.23%, respectively, compared to 0.84% and 9.85%, for the same periods in 2024.
Current wording
Return on average assets ("ROA") for the quarter ended September 30, 2025 was 1.13%, compared to 0.94% for the quarter ended September 30, 2024. Return on average shareholders’ equity ("ROE") for the third quarter of 2025 was 12.17%, compared to 10.65% for the third quarter of 2024. For the year-to-date period ended September 30, 2025, ROA and ROE totaled 1.06% and 11.56%, respectively, compared to 0.87% and 10.12%, for the same periods in 2024.
Previous wording
The banking segment reported net income of $18.7 million for the second quarter of 2025, an increase of $5.7 million, or 44.1%, compared to $13.0 million for the second quarter of 2024. For the six months ended June 30, 2025, the banking segment reported net income of $34.4 million, up $7.9 million, or 29.6%, from the same period in 2024. The increase in net income for the three and six months ended June 30, 2025 compared to the same periods in 2024 was mainly due to an increase in net interest income.
Current wording
The banking segment reported net income of $20.2 million for the third quarter of 2025, an increase of $5.4 million, or 36.3%, compared to $14.8 million for the third quarter of 2024. For the nine months ended September 30, 2025, the banking segment reported net income of $54.6 million, up $13.2 million, or 32.0%, from the same period in 2024. The increase in net income for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was mainly due to an increase in net interest income.
Previous wording
Net interest income of $60.1 million for the second quarter of 2025 was up $9.2 million, or 18.0%, from the same period in 2024. For the six months ended June 30, 2025, net interest income of $116.8 million was up $15.2 million, or 14.9%, from the same period in 2024. The increase in net interest income for the three and six months ended June 30, 2025 compared to the same periods in 2024 was primarily due to an increase in average loan balances, an increase in average loan yields and a reduction in average funding costs due to improved funding mix.
Current wording
Net interest income of $63.9 million for the third quarter of 2025 was up $10.7 million, or 20.1%, from the same period in 2024. For the nine months ended September 30, 2025, net interest income of $180.7 million was up $25.9 million, or 16.7%, from the same period in 2024. The increase in net interest income for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was primarily due to an increase in average loan balances, increases in average loan yields and a reduction in average funding costs due to improved funding mix.
Previous wording
The provision for credit losses was $2.8 million for the three months ended June 30, 2025, compared to $2.2 million for the same period in 2024. For the six months ended June 30, 2025, the provision for credit losses was $8.1 million compared to $3.0 million for the same period in 2024. Net charge-offs for the three and six months ended June 30, 2025 were $5.3 million and $6.0 million, respectively, compared to net charge-offs of $509,000 and $737,000 for the same periods in 2024. For additional information, see the section titled "The Allowance for Credit Losses" below.
Current wording
The provision for credit losses was $2.5 million for the three months ended September 30, 2025, compared to $2.2 million for the same period in 2024. For the nine months ended September 30, 2025, the provision for credit losses was $10.6 million compared to $5.2 million for the same period in 2024. Net charge-offs for the three and nine months ended September 30, 2025 were $1.1 million and $7.1 million, respectively, compared to net charge-offs of $912,000 and $1.6 million for the same periods in 2024. For additional information, see the section titled "The Allowance for Credit Losses" below.
Previous wording
Noninterest income was $7.6 million for the three months ended June 30, 2025, compared to $7.8 million for the same period in 2024. The decrease in noninterest income for the three months ended June 30, 2025 was mainly attributable to a decrease in income related to bank owned life insurance (down $450,000), partially offset by an increase in gains on sales of residential loans (up $351,000). For the six months ended June 30, 2025, noninterest income was $16.3 million compared to $14.9 million for the six months ended June 30, 2024. The increase in year-to-date noninterest income compared to the same period in 2024 was mainly attributable to a $1.9 million gain on the sale of other real estate owned ("OREO), and an increase in gains on sales of residential loans, which were up $731,000, partially offset by decreases in derivatives related income (down $401,000) and income related to bank owned life insurance (down $385,000).
Current wording
Noninterest income was $7.7 million for the three months ended September 30, 2025, compared to $7.5 million for the same period in 2024. The increase in noninterest income for the three months ended September 30, 2025 was mainly attributable to an increase in gains on sales of residential loans. For the nine months ended September 30, 2025, noninterest income was $23.9 million compared to $22.4 million for the nine months ended September 30, 2024. The increase in year-to-date noninterest income compared to the same period in 2024 was mainly attributable to a $1.9 million gain on the sale of other real estate owned ("OREO"), and an increase in gains on sales of residential loans, up $933,000, partially offset by decreases in derivatives related income, down $472,000, card services income, down $471,000, and income related to bank owned life insurance, down $389,000.
Previous wording
The insurance segment reported net income of $1.6 million for the three months ended June 30, 2025, which was up $68,000, or 4.4%, compared to the second quarter of 2024. Total noninterest revenue was up $681,000, or 7.4%, for the second quarter of 2025 compared to the same quarter in the prior year. Insurance commissions and fees increased by $220,000 or 2.6% in the three months ended June 30, 2025, compared to the same period of 2024, and contingency revenue increased by $324,000 or 35.2%. The second quarter of 2025 also included $161,000 of income related to life insurance proceeds.
Current wording
The insurance segment reported net income of $2.9 million for the three months ended September 30, 2025, which was down $213,000, or 6.9%, compared to the third quarter of 2024. Total noninterest revenue of $11.4 million for the three months ended September 30, 2025 was in line with the same period prior year. Insurance commissions and fees increased by $155,000 or 1.5% for the three months ended September 30, 2025, compared to the same period of 2024, and contingency revenue increased by $116,000 or 10.6%.
Previous wording
For the six months ended June 30, 2025, net income was up $848,000, or 21.5%, from the same period in the prior year. Total noninterest revenue for the year-to-date period ended June 30, 2025 was up $1.9 million, or 9.4%, compared to the same period in the prior year. The increase in total noninterest revenue for the six months ended June 30, 2025 compared to the prior year period included growth in overall commission revenue of $900,000, or 5.2%, with increases in personal lines (up $151,000, or 2.8%), and commercial lines (up $815,000, or 10.1%); as well as growth in contingency revenues, which were up $1.0 million, or 46.6%. These increases were attributable to growth in personal and commercial lines from new business, rate increases related to current market conditions and improved ratios as they relate to carrier profit sharing calculations.
Current wording
For the nine months ended September 30, 2025, net income of $7.6 million was up $633,000, or 9.0%, from the same period in the prior year. Total noninterest revenue for the year-to-date period ended September 30, 2025 was up $1.9 million, or 6.0%, compared to the same period in the prior year. The increase in total noninterest revenue for the nine months ended September 30, 2025 compared to the prior year period included growth in overall commission revenue of $746,000, or 2.7%, with increases in personal lines (up $347,000, or 4.1%), and commercial lines (up $523,000, or 4.0%); as well as growth in contingency revenues, which were up $1.2 million, or 34.7%. These increases were attributable to growth in personal and commercial lines from new business, rate increases related to current market conditions and improved ratios as they relate to carrier profit sharing calculations.
Previous wording
Noninterest expenses for the three months ended June 30, 2025 were up $643,000, or 9.1%, compared to the three months ended June 30, 2024. Year-to-date noninterest expenses were up $741,000, or 5.2%, compared to the six months ended June 30, 2024. The increase in noninterest expenses for the three and six months ended June 30, 2025 was primarily driven by increases in salaries, incentives and employee benefits.
Current wording
Noninterest expense for the three months ended September 30, 2025 was up $294,000, or 4.1%, compared to the three months ended September 30, 2024. Year-to-date noninterest expense was up $1.0 million, or 4.8%, compared to the nine months ended September 30, 2024. The increase in noninterest expense for the three and nine months ended September 30, 2025 was primarily driven by increases in salaries, incentives and employee benefits.
Previous wording
The wealth management segment reported net income of $1.2 million for the three months ended June 30, 2025, which was in line with the second quarter of 2024. Revenue for the three months ended June 30, 2025 was up $280,000 or 5.3%, compared to the three months ended June 30, 2024, primarily due to gains on the sale of certain customer accounts and fees related to terminating trust accounts. Noninterest expense for the three months ended June 30, 2025 was up $279,000 or 7.5%, compared to the same period in 2024, which was primarily attributable to an increase in salaries and employee benefits.
Current wording
The wealth management segment reported net income of $626,000 for the three months ended September 30, 2025, which was down $129,000 or 17.1% compared to the third quarter of 2024. Revenue for the three months ended September 30, 2025 was up $66,000 or 1.3%, compared to the three months ended September 30, 2024, primarily due to an increase in advisory fees. Noninterest expense for the three months ended September 30, 2025 was up $233,000 or 5.8%, compared to the same period in 2024, which was primarily due to an increase in affiliate service charges and technology expense.
Previous wording
For the six months ended June 30, 2025, net income of $2.0 million was down $108,000, or 5.2%, compared to the same period in the prior year. Total revenue for the six months ended June 30, 2025 was up $454,000, or 4.4%, compared to the same period in the prior year, mainly due to gains on the sale of certain customer accounts and fees related to terminating trust accounts.
Current wording
For the nine months ended September 30, 2025, net income of $2.6 million was down $235,000, or 8.3%, compared to the same period in the prior year. Total revenue of $15.8 million for the nine months ended September 30, 2025 was up $522,000, or 3.4%, compared to the same period in the prior year, mainly due to an increase in advisory fees and gains on the sale of certain customer accounts. Noninterest expense of $12.4 million for the nine months ended September 30, 2025 was up $823,000, or 7.1%, compared to the same period prior year, mainly attributable to salaries and employee benefits, affiliate service charges and technology expense.
Previous wording
The following tables show average interest-earning assets and interest-bearing liabilities, and the corresponding yield or cost associated with each, for the three and six month periods ended June 30, 2025 and 2024 and the three months ended March 31, 2025:
Current wording
The following tables show average interest-earning assets and interest-bearing liabilities, and the corresponding yield or cost associated with each, for the three and nine month periods ended September 30, 2025 and 2024 and the three months ended June 30, 2025:
Previous wording
Net interest income was $60.1 million and $116.8 million, respectively, for the three and six months ended June 30, 2025, up $9.2 million, or 18.0%, and $15.2 million, or 14.9%, respectively, from the same periods in 2024.
Current wording
Net interest income was $63.9 million and $180.7 million, respectively, for the three and nine months ended September 30, 2025, up $10.7 million, or 20.1%, and $25.8 million, or 16.7%, respectively, from the same periods in 2024.
Previous wording
Net interest margin for the three months ended June 30, 2025 was 3.08% compared to 2.73% for the same period in 2024. Net interest margin for the six months ended June 30, 2025 was 3.03% compared to 2.73% for the same period in 2024. The increase in net interest margin for the three and six months ended June 30, 2025 compared to the same periods in 2024 was due to increased yields on average interest earning assets, higher average loan balances, and lower funding costs resulting from improved funding mix.
Current wording
Net interest margin for the three months ended September 30, 2025 was 3.20% compared to 2.79% for the same period in 2024. Net interest margin for the nine months ended September 30, 2025 was 3.09% compared to 2.75% for the same period in 2024. The increase in net interest margin for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was due to increased yields on average interest earning assets, higher average loan balances, and lower funding costs resulting from improved funding mix.
Previous wording
The quarterly net interest margin of 3.08% for the second quarter of 2025 was up 10 basis points over the net interest margin of 2.98% for the first quarter of 2025. 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 average cost of interest-bearing liabilities for the second quarter of 2025 was 2.44%, unchanged from the first quarter of 2025.
Current wording
The quarterly net interest margin of 3.20% for the third quarter of 2025 was up 12 basis points over the net interest margin of 3.08% for the second quarter of 2025. 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.
Previous wording
Interest income for the three and six months ended June 30, 2025 was $93.6 million and $183.1 million, up 9.9% and 8.7%, respectively, compared to the same periods in 2024. The average yield on interest-earning assets increased 23 basis points for the three and six months ended June 30, 2025, compared to the same periods in 2024. Average interest-earning assets for the three and six months ended June 30, 2025, increased $327.8 million, or 4.3%, and $286.2 million, or 3.8%, respectively, compared to the same periods in 2024.
Current wording
Interest income for the three and nine months ended September 30, 2025 was $98.1 million and $281.2 million, up 10.0% and 9.2%, respectively, compared to the same periods in 2024. The average yield on interest-earning assets increased 24 and 23 basis points for the three and nine months ended September 30, 2025, compared to the same periods in 2024. Average interest-earning assets for the three and nine months ended September 30, 2025, increased $329.4 million, or 4.3%, and $300.9 million, or 4.0%, respectively, compared to the same periods in 2024.
Previous wording
Interest income on loans for the three and six months ended June 30, 2025, was up $8.7 million, or 11.7%, and $15.7 million, or 10.8%, respectively, compared to the same periods in 2024, driven by higher average yields and higher average loan balances. The average yields on loans for the three and six months ended June 30, 2025 of 5.40% and 5.35% respectively, were up 18 and 17 basis points from the same periods in 2024. For the three and six months ended June 30, 2025 average loan balances were up $442.0 million, or 7.8%, and $423.2 million, or 7.5%, respectively, over the same periods of 2024.
Current wording
Interest income on loans for the three and nine months ended September 30, 2025, was up $8.5 million, or 10.9%, and $24.2 million, or 10.8%, respectively, compared to the same periods in 2024, driven by higher average yields and higher average loan balances. The average yields on loans for the three and nine months ended September 30, 2025 of 5.52% and 5.40% respectively, were up 20 and 18 basis points from the same periods in 2024. For the three and nine months ended September 30, 2025 average loan balances were up $385.5 million, or 6.6%, and $410.7 million, or 7.2%, respectively, over the same periods of 2024.
Previous wording
Interest income on securities, excluding dividends on FHLB stock, for the three months ended June 30, 2025, was in line with same period in 2024. For the six months ended June 30, 2025, interest income on securities, excluding dividends on FHLB stock, was down $945,000 or 4.4% when compared to the same period in 2024, driven by lower average balances partially offset by higher yields when compared to the prior year. The average yield on total securities for the three and six months ended June 30, 2025, was up 13 and 8 basis points, respectively, over the same periods in 2024, while average balances for securities were down $112.3 million, or 6.2%, and $136.8 million, or 7.5%, respectively, from the same periods in 2024.
Current wording
Interest income on securities, excluding dividends on FHLB stock, for the three months ended September 30, 2025, was up $703,000 or 6.9% over the same period in 2024, driven by higher average yields, partially offset by lower average balances. For the nine months ended September 30, 2025, interest income on securities, excluding dividends on FHLB stock, was down $239,000 or 0.8% when compared to the same period in 2024, driven by lower average balances, partially offset by higher yields. The average yield on total securities for the three and nine months ended September 30, 2025, was up 23 and 13 basis points, respectively, over the same periods in 2024, while average balances for securities were down $53.9 million, or 3.1%, and $108.9 million, or 6.0%, respectively, from the same periods in 2024.
Previous wording
Interest expense for the three and six months ended June 30, 2025 decreased $771,000, or 2.2%, and $479,000 or 0.7%, compared to the same periods in 2024. The decrease reflects lower average costs of interest-bearing liabilities, largely a result of improved funding mix and lower borrowing rates. For the three and six months ended June 30, 2025, the average cost of interest bearing liabilities was down 20 basis points and 14 basis points, respectively, from the same periods in 2024, while average interest-bearing liabilities were up $288.6 million or 3.8% and $266.5 million or 5.1%.
Current wording
Interest expense for the three and nine months ended September 30, 2025 decreased $1.8 million, or 4.9%, and $2.2 million or 2.2%, compared to the same periods in 2024. The decrease reflects lower average costs of interest-bearing liabilities, largely a result of improved funding mix and lower borrowing rates. For the three and nine months ended September 30, 2025, the average cost of interest-bearing liabilities was down 26 basis points and 17 basis points, respectively, from the same periods in 2024, while average interest-bearing liabilities were up $252.6 million or 4.8% and $261.9 million or 5.0%, respectively. The growth in average interest-bearing liabilities was primarily in average deposits, partially offset by decreases in average borrowings.
Previous wording
The average cost of interest-bearing deposits for the three and six months ended June 30, 2025 was 2.24%, down 3 basis points compared to the three month period ended June 30, 2024, and up 2 basis points compared to the same six month period in 2024. Average interest-bearing deposits for the three and six months ended June 30, 2025, were up $424.8 million, or 9.5%, and $365.7 million, or 8.1%, respectively, from the same periods in 2024. Average time deposits for the three and six months ended June 30, 2025 were up $242.8 million or 24.6% and $206.7 million or 20.9%, respectively, compared to the same periods in 2024, while the average cost of time deposits was down 30 and 22 basis points, respectively, over the same periods.
Current wording
The average cost of interest-bearing deposits for the three and nine months ended September 30, 2025 was 2.26% and 2.25%, respectively, down 9 basis points compared to the three month period ended September 30, 2024, and down 1 basis point compared to the same nine month period in 2024. Average interest-bearing deposits for the three and nine months ended September 30, 2025, were up $427.6 million, or 9.4%, and $386.6 million, or 8.6%, respectively, from the same periods in 2024. Average time deposits for the three and nine months ended September 30, 2025 were up $211.9 million or 20.8% and $208.5 million or 20.9%, respectively, compared to the same periods in 2024. Average interest-bearing checking, savings and money market deposits for the three and nine months ended September 30, 2025 were up $215.8 million or 6.2% and $178.1 million or 5.1%, respectively, over the same periods in 2024.
Previous wording
Average other borrowings for the three and six months ended June 30, 2025 were down $138.1 million, or 20.0%, and $99.5 million, or 15.2%, respectively, compared to the same periods in 2024. The average rate paid on other borrowings for the three and six months ended June 30, 2025 was down 90 basis points and 85 basis points, respectively, over the same periods in 2024.
Current wording
Average other borrowings for the three and nine months ended September 30, 2025 were down $174.1 million, or 24.5%, and $124.6 million, or 18.5%, respectively, compared to the same periods in 2024. The average rate paid on other borrowings for the three and nine months ended September 30, 2025 was down 81 basis points and 84 basis points, respectively, from the same periods in 2024.
Previous wording
The provision for credit losses represents management’s estimate of the amount necessary to maintain the allowance for credit losses ("ACL") at an appropriate level. Provision for credit losses for the second quarter of 2025 was $2.8 million compared to $2.2 million for the second quarter of 2024. Provision for credit losses for the six months ended June 30, 2025 was $8.1 million compared to $3.0 million for the six months ended June 30, 2024. The increase in provision expense for the quarter and year-to-date periods compared to the same periods in 2024 was mainly due to a charge-off on one commercial real estate relationship, and updated economic forecasts. The provision for credit losses for the three and six months ended June 30, 2025 included a credit of $6,000 and an expense of $21,000, respectively, related to off-balance sheet credit exposures compared to an expense of $308,000 and $814,000, respectively, for the same periods in 2024. The change in off-balance sheet reserves was mainly due to changes related to commercial loan pipelines. The section captioned "Financial Condition – The Allowance for Credit Losses" below has further details on the allowance for credit losses and asset quality metrics.
Current wording
The provision for credit losses represents management’s estimate of the amount necessary to maintain the allowance for credit losses ("ACL") at an appropriate level. 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 due to the partial charge-off of $4.7 million related to one commercial real estate relationship totaling $18.1 million, during the second quarter of 2025. The provision for credit losses for the three and nine months ended September 30, 2025 included expenses of $36,000 and of $57,000, respectively, related to off-balance sheet credit exposures compared to credits of $1.1 million and $249,000, respectively, for the same periods in 2024. The change in off-balance sheet reserves was mainly a result of model changes related to utilization rates during the third quarter of 2024 which resulted in a credit to provision expense, and changes related to the commercial loan pipeline during the current quarter. The section captioned "Financial Condition – The Allowance for Credit Losses" below has further details on the allowance for credit losses and asset quality metrics.
Previous wording
Insurance commissions and fees, the largest component of noninterest income, were $9.6 million for the second quarter of 2025, an increase of $522,000 or 5.7% from the same period for the prior year. For the first six months of 2025, insurance commissions and fees were up $1.9 million, or 9.6%, compared to the same period in 2024. The increase in revenues for the three and six months ended June 30, 2025 compared to the same periods in 2024 was due to growth in commercial and personal lines revenue from new business and rate increases related to market conditions, along with an increase in contingency revenue based on premium growth and improved ratios related to carrier profit sharing calculations.
Current wording
Insurance commissions and fees, the largest component of noninterest income, were $11.3 million for the third quarter of 2025, in line with the same period for the prior year. For the first nine months of 2025, insurance commissions and fees were up $1.9 million, or 6.1%, compared to the same period in 2024. The increase in revenues for the nine months ended September 30, 2025 compared to the same period in 2024 was due to growth in commercial and personal lines revenue from new business and rate increases related to market conditions, along with an increase in contingency revenue based on premium growth and improved ratios related to carrier profit sharing calculations.
Previous wording
Wealth management fees of $5.0 million in the second quarter of 2025 were up $115,000 or 2.4% compared to the second quarter of 2024. For the first six months of 2025, wealth management fees were up $297,000, or 3.0% compared to the same period in 2024. Wealth management fees include trust services, financial planning, wealth management services, and brokerage related services. The fair value of assets managed by, or in custody of, Tompkins was $2.8 billion at June 30, 2025, down $308.9 million or 9.8% from June 30, 2024, mainly attributable to the sale of certain customer accounts.
Current wording
Wealth management fees of $5.0 million in the third quarter of 2025 were in line with the third quarter of 2024. For the first nine months of 2025, wealth management fees were up $351,000, or 2.4% compared to the same period in 2024. Wealth management fees include trust services, financial planning, wealth management services, and brokerage related services. The fair value of assets managed by, or in custody of, Tompkins was $3.0 billion at September 30, 2025, down $228.7 million or 7.1% from September 30, 2024, mainly attributable to the sale of certain customer accounts. Excluding the sale of customer accounts fair value of assets managed by, or in custody of Tompkins would be flat compared to the same period prior year.
Previous wording
Card services income in the second quarter of 2025 was down $128,000, or 3.9% from the same period in 2024, and down $441,000, or 7.1% for the six months ended June 30, 2025 compared to the same period in 2024. The six month period in 2024 included a one-time $255,000 sign-on bonus associated with renewal of a card services contract.
Current wording
Card services income in the third quarter of 2025 was down $30,000, or 1.0% from the same period in 2024, and for the nine months ended September 30, 2025 was down $471,000, or 5.2% compared to the same period in 2024. The nine month period in 2024 included a one-time $255,000 sign-on bonus associated with renewal of a card services contract.
Previous wording
Other income of $3.0 million in the second quarter of 2025 was up $196,000, or 7.0%, compared to the same period in 2024. For the first six months of 2025, other income of $6.9 million was up $1.8 million, or 36.7%, compared to the same period in 2024. The increase for the three months ended June 30, 2025 compared to the same period in 2024 was mainly due to gains on sales of residential loans (up $351,000) and gains on sales of certain customer accounts within the wealth management business (up $256,000), partially offset by lower income on bank owned life insurance (down $450,000). The increase for the six months ended June 30, 2025 compared to the same period in 2024 was mainly attributable to a $1.9 million gain on the sale of OREO, and gains on sales of residential loans (up $731,000), partially offset by decreases in derivatives related income (down $401,000) and income related to bank owned life insurance (down $385,000).
Current wording
Other income of $2.6 million in the third quarter of 2025 was up $258,000, or 11.2%, compared to the same period in 2024. For the first nine months of 2025, other income of $9.4 million was up $2.1 million, or 28.7%, compared to the same period in 2024. The increase for the three months ended September 30, 2025 compared to the same period in 2024 was mainly due to gains on sales of residential loans, which were up $202,000. The increase for the nine months ended September 30, 2025 compared to the same period in 2024 was mainly attributable to a $1.9 million gain on the sale of OREO and gains on sales of residential loans, which were up $933,000, partially offset by decreases in derivatives related income, down $473,000 and income related to bank owned life insurance, down $388,000.
Previous wording
Noninterest expense of $51.6 million for the second quarter of 2025 was up $1.7 million or 3.4% over the second quarter of 2024. Noninterest expense of $102.2 million for the first six months of 2025 was up $2.4 million, or 2.4%, compared to the same period in 2024. The increases in noninterest expense for the three and six month periods were driven primarily by increased expenses associated with compensation and benefits.
Current wording
Noninterest expense of $53.8 million for the third quarter of 2025 was up $4.0 million or 8.0% over the third quarter of 2024. Noninterest expense of $156.1 million for the first nine months of 2025 was up $6.4 million, or 4.3%, compared to the same period in 2024. The increases in noninterest expense for the three and nine month periods were driven primarily by increased expenses associated with compensation and benefits.
Previous wording
Expenses associated with compensation and benefits comprise the largest component of noninterest expense. Total salaries, wages and benefits for the three months ended June 30, 2025, were up $2.1 million, or 6.6%, over the same period in 2024, and for the six months ended June 30, 2025 were up $3.0 million or 4.9% over the same period in 2024. For both the three and six months ended June 30, 2025, increases were driven largely by annual merit increases and increases in health insurance expense.
Current wording
Expenses associated with compensation and benefits comprise the largest component of noninterest expense. Total salaries, wages and benefits for the three months ended September 30, 2025, were up $1.7 million, or 5.4%, over the same period in 2024, and for the nine months ended September 30, 2025 were up $4.7 million or 5.0% over the same period in 2024. For both the three and nine months ended September 30, 2025, increases were driven largely by annual merit increases and increases in health insurance expense.
Previous wording
The provision for income taxes was $6.8 million for an effective rate of 24.0% for the second quarter of 2025, compared to a tax provision of $4.9 million and an effective rate of 23.8% for the same quarter in 2024. For the first six months of 2025, the provision for income taxes was $12.9 million for an effective rate of 23.9% compared to tax provision of $10.1 million and an effective rate of 23.6% for the same period in 2024. The effective rates differ from the U.S. and state statutory rates primarily due to the effect of tax-exempt income from loans, securities and life insurance assets, and the income tax effects associated with stock-based compensation.
Current wording
The provision for income taxes was $7.4 million for an effective rate of 23.9% for the third quarter of 2025, compared to a tax provision of $5.9 million and an effective rate of 23.9% for the same quarter in 2024. For the first nine months of 2025, the provision for income taxes was $20.3 million for an effective rate of 23.9% compared to tax provision of $16.0 million and an effective rate of 23.7% for the same period in 2024. The effective rates differ from the U.S. and state statutory rates primarily due to the effect of tax-exempt income from loans, securities and life insurance assets, and the income tax effects associated with stock-based compensation.
Previous wording
On July 4, 2025, HR.1 – One Big Beautiful Bill Act was signed into federal law and, among other things, enacted amendments to federal tax laws. The Company is currently evaluating the impact, if any, of these changes on future periods.
Current wording
On July 4, 2025, HR.1 - One Big Beautiful Bill Act was signed into federal law and, among other things, enacted amendments to the federal tax laws. The Company does not expect the bill to have a material impact on our consolidated financial statements.
Previous wording
Total assets were $8.4 billion at June 30, 2025, up $264.7 million, or 3.3%, from December 31, 2024. Total loans were up $152.7 million, or 2.5%, cash and cash equivalents were up $78.2 million, or 58.2%, and total securities were up $43.9 million, or 2.8%, compared to December 31, 2024. Total deposits at June 30, 2025 were up $244.0 million, or 3.8%, and borrowings were down $117.6 million, or 14.9%, from December 31, 2024.
Current wording
Total assets were $8.5 billion at September 30, 2025, up $359.7 million, or 4.4%, from December 31, 2024. Total loans were up $268.1 million, or 4.5%, cash and cash equivalents were up $59.1 million, or 44.0%, and total securities were up $59.6 million, or 3.9%, compared to December 31, 2024. Total deposits at September 30, 2025 were up $581.3 million, or 9.0%, while other borrowings at September 30, 2025 were down $345.4 million, or 43.7%, from December 31, 2024.
Previous wording
As of June 30, 2025, the Company’s securities portfolio was $1.6 billion, or 19.0% of total assets compared to $1.5 billion, or 19.1% of total assets at year end 2024. The following tables detail the composition of the securities portfolio:
Current wording
As of September 30, 2025, the Company’s securities portfolio was $1.6 billion, or 18.9% of total assets compared to $1.5 billion, or 19.1% of total assets at year end 2024. The following tables detail the composition of the securities portfolio:
Previous wording
As of June 30, 2025, the available-for-sale debt securities portfolio had net unrealized losses, which reflects the amount that the amortized cost exceeds fair value, of $104.7 million compared to net unrealized losses of $135.6 million at December 31, 2024. The decrease in unrealized losses related to the available-for-sale debt securities portfolio reflects interest rate volatility in the market, the volume and rates associated with securities purchases, and maturities in 2025. Management’s policy is to purchase investment grade securities that on average have relatively short duration, which helps mitigate interest rate risk and provides sources of liquidity without significant risk to capital.
Current wording
As of September 30, 2025, the available-for-sale debt securities portfolio had net unrealized losses, which reflects the amount that the amortized cost exceeds fair value, of $89.7 million compared to net unrealized losses of $135.6 million at December 31, 2024. The decrease in unrealized losses related to the available-for-sale debt securities portfolio reflects interest rate volatility in the market, the volume and rates associated with securities purchases, and maturities in 2025. Management’s policy is to purchase investment grade securities that on average have relatively short duration, which helps mitigate interest rate risk and provides sources of liquidity without significant risk to capital.
Previous wording
The Company determined that at June 30, 2025, all impaired available-for-sale and held-to-maturity debt securities were impaired because of changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit worthiness of the underlying issuers. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. Therefore, the Company carried no ACL at June 30, 2025 and there was no credit loss expense recognized by the Company with respect to the securities portfolio during the three and six months ended June 30, 2025.
Current wording
The Company determined that at September 30, 2025, all impaired available-for-sale and held-to-maturity debt securities were impaired because of changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit worthiness of the underlying issuers. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. Therefore, the Company carried no ACL at September 30, 2025 and there was no credit loss expense recognized by the Company with respect to the securities portfolio during the three and nine months ended September 30, 2025.
Previous wording
Loans and leases as of the end of the second quarter and prior year-end were as follows:
Current wording
Loans and leases as of the end of the third quarter and prior year-end were as follows:
Previous wording
Total loans and leases of $6.2 billion at June 30, 2025 were up $152.7 million, or 2.5%, from December 31, 2024, mainly in the commercial real estate and commercial and industrial loan portfolios. As of June 30, 2025, total loans and leases represented 73.7% of total assets compared to 74.2% of total assets at December 31, 2024.
Current wording
Total loans and leases of $6.3 billion at September 30, 2025 were up $268.1 million, or 4.5%, from December 31, 2024, mainly in the commercial real estate and commercial and industrial loan portfolios. As of September 30, 2025, total loans and leases represented 74.3% of total assets compared to 74.2% of total assets at December 31, 2024.
Previous wording
Residential real estate loans, including home equity loans, were $1.6 billion at June 30, 2025, in line with December 31, 2024, and comprised 25.4% of total loans and leases at June 30, 2025.
Current wording
Residential real estate loans, including home equity loans, were $1.6 billion at September 30, 2025, in line with December 31, 2024, and comprised 25.1% of total loans and leases at September 30, 2025.
Showing the first 40 of 65 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Changes in the circumstances considered when determining management's estimates and assumptions could result in changes in those estimates and assumptions, which could result in adjustment of the allowance for credit losses in future periods. A discussion of facts and circumstances considered by management in determining the allowance for credit losses is included in Note 5 - "Allowance for Credit Losses" in the Notes to the Unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
31, 2024. Tier 1 capital as a percent of average assets was 9.4% at June 30, 2025, up from 9.3% as of December 31, 2024. Common equity Tier 1 capital was 12.2% at June 30, 2025, up from 12.1% at December 31, 2024.
Previous report — wording carried elsewhere
December 31, 2024, to 18.0% and 16.4%, respectively. The Company also maintains board policy limits requiring that on-balance sheet liquidity, which includes liquid assets including cash, overnight funds sold, short-term investments, fair value of encumbered investment securities, and the guaranteed portion of government & agency loans, remain above 3% of total assets. As of the end of the second quarter of 2025, this ratio was 10.3%.