TOMPKINS FINANCIAL CORP

Previous wording

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, and financial planning and wealth management. At June 30, 2026, the Company had one wholly-owned banking subsidiary, Tompkins Community Bank, which changed its name to Tompkins Bank & Trust effective July 20, 2026. Tompkins Bank & Trust provides a broad selection of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, and financial and tax planning. On October 31, 2025, the Company sold all of the issued and outstanding shares of capital stock of its wholly-owned insurance subsidiary, Tompkins Insurance Agencies, Inc. ("TIA"), to Arthur J. Gallagher Risk Management Services, LLC ("Gallagher"). The Company’s principal offices are located at 118 E. Seneca Street, P.O. Box 460, Ithaca, NY, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the Symbol "TMP."

Current wording

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, and financial planning and wealth management. At September 30, 2026, the Company had one wholly-owned banking subsidiary, Tompkins Bank & Trust, which changed its name from Tompkins Community Bank effective July 20, 2026. Tompkins Bank & Trust provides a broad selection of wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, and financial and tax planning. On October 31, 2025, the Company sold all of the issued and outstanding shares of capital stock of its wholly-owned insurance subsidiary, Tompkins Insurance Agencies, Inc. ("TIA"), to Arthur J. Gallagher Risk Management Services, LLC ("Gallagher"). The Company’s principal offices are located at 118 E. Seneca Street, P.O. Box 460, Ithaca, NY, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the Symbol "TMP."

Previous wording

Competition among financial institutions is based upon interest rates offered on deposit accounts, interest rates charged on loans and other credit and service charges, the quality and scope of the services rendered, the convenience of facilities and services, and, in the case of loans to commercial borrowers, relative lending limits. Management believes that a community-based financial organization is better positioned to establish personalized financial relationships with both commercial customers and individual households. The Company’s community commitment and involvement in its primary market areas, as well as its commitment to quality and personalized financial services, are factors that contribute to the Company’s competitiveness. Management believes that the Company’s subsidiary bank can compete successfully in its primary market areas by making prudent lending decisions quickly and more efficiently than its competitors, without compromising asset quality or profitability. In addition, the Company focuses on providing unparalleled customer service, which includes offering a strong suite of products and services, including products that are accessible to our customers through digital means. Although management feels that this business model has caused the Company to grow its customer base in recent years and allows it to compete effectively in the markets it serves, we cannot assure you that such factors will result in future success.

Current wording

Competition among financial institutions is based upon interest rates offered on deposit accounts, interest rates charged on loans and other credit and service charges, the quality and scope of the services rendered, the convenience of facilities and services, and, in the case of loans to commercial borrowers, relative lending limits. Management believes that a community-based financial organization is better positioned to establish personalized financial relationships with both commercial customers and individual households. The Company’s community commitment and involvement in its primary market areas, as well as its commitment to quality and personalized financial services, are factors that contribute to the Company’s competitiveness. Management believes that the Company’s subsidiary bank can compete successfully in its primary market areas by making prudent lending decisions quickly and more efficiently than its competitors, without compromising asset quality or profitability. In addition, the Company focuses on providing unparalleled customer service, which includes offering a strong suite of products and services, including products that are accessible to our customers through digital means. Although management feels that this business model has caused the Company to grow its customer base in recent years and allows it to compete effectively in the markets we serve, we cannot assure you that such factors will result in future success.

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, 2026. 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, 2025, 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, 2026. 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, 2025, and the Unaudited Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.

Previous wording

In this Report, there are comparisons of the Company’s performance to that of a peer group, which is comprised of 207 domestic bank holding companies with $3 billion to $10 billion in total assets as defined in the Federal Reserve’s "Bank Holding Company Performance Report" for March 31, 2026 (the most recent report available). Although the peer group data is presented based upon financial information that is one fiscal quarter behind the financial information included in this report, the Company believes that it is relevant to include certain peer group information for comparison to current quarter numbers.

Current wording

In this Report, there are comparisons of the Company’s performance to that of a peer group, which is comprised of 202 domestic bank holding companies with $3 billion to $10 billion in total assets as defined in the Federal Reserve’s "Bank Holding Company Performance Report" for June 30, 2026 (the most recent report available). Although the peer group data is presented based upon financial information that is one fiscal quarter behind the financial information included in this report, the Company believes that it is relevant to include certain peer group information for comparison to current quarter numbers.

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", "could", "should", "will", "would", "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 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; projections of future financial condition, operating results, income, capital expenditures, costs or other financial items; anticipated regulatory and legislative changes; and other characterizations of future events or circumstances as well as other statements that are not statements of historical fact. 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 our Annual Report on Form 10-K for the year ended December 31, 2025, 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 cha…

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", "could", "should", "will", "would", "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 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; trends, plans, prospects, growth and strategies; projections of future financial condition, operating results, income, capital expenditures, costs or other financial items; anticipated regulatory and legislative changes; and other characterizations of future events or circumstances as well as other statements that are not statements of historical fact. 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 our Annual Report on Form 10-K for the year ended December 31, 2025, 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; changes in 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 …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Net income for the second quarter of 2026 was $29.3 million, or $2.04 diluted earnings per share, compared to $21.5 million, or $1.50 diluted earnings per share for the second quarter of 2025. Net income for the six months ended June 30, 2026 was $55.4 million, or $3.86 diluted earnings per share, compared to $41.2 million, or $2.87 diluted earnings per share for the same period in 2025. The increase in net income and diluted earnings per share for the three and six months ended June 30, 2026 compared to the same periods in 2025 largely reflects increases in our net interest margin as well as continued loan growth.

Current wording

Net income for the third quarter of 2026 was $28.7 million, or $2.00 diluted earnings per share, compared to $23.7 million, or $1.65 diluted earnings per share for the third quarter of 2025. Net income for the nine months ended September 30, 2026 was $84.0 million, or $5.86 diluted earnings per share, compared to $64.8 million, or $4.52 diluted earnings per share for the same period in 2025. The increase in net income and diluted earnings per share for the three and nine months ended September 30, 2026 compared to the same periods in 2025 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, 2026 was 1.36%, compared to 1.05% for the quarter ended June 30, 2025. Return on average shareholders’ equity ("ROE") for the second quarter of 2026 was 12.32%, compared to 11.48% for the second quarter of 2025. For the year-to-date period ended June 30, 2026, ROA and ROE totaled 1.30% and 11.72%, respectively, compared to 1.02% and 11.23%, for the same periods in 2025.

Current wording

Return on average assets ("ROA") for the quarter ended September 30, 2026 was 1.30%, compared to 1.13% for the quarter ended September 30, 2025. Return on average shareholders’ equity ("ROE") for the third quarter of 2026 was 11.85%, compared to 12.17% for the third quarter of 2025. For the year-to-date period ended September 30, 2026, ROA and ROE totaled 1.30% and 11.77%, respectively, compared to 1.06% and 11.56%, for the same periods in 2025.

Previous wording

The banking segment reported net income of $28.4 million for the second quarter of 2026, an increase of $9.7 million, or 52.0%, compared to $18.7 million for the second quarter of 2025. For the six months ended June 30, 2026, the banking segment reported net income of $53.6 million, up $19.2 million, or 55.8%, from the same period in 2025. The increase in net income for the three and six months ended June 30, 2026 compared to the same periods in 2025 was mainly due to an increase in net interest income.

Current wording

The banking segment reported net income of $27.8 million for the third quarter of 2026, an increase of $7.6 million, or 37.8%, compared to $20.2 million for the third quarter of 2025. For the nine months ended September 30, 2026, the banking segment reported net income of $81.4 million, up $26.8 million, or 49.2%, from the same period in 2025. The increase in net income for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was mainly due to an increase in net interest income.

Previous wording

Net interest income of $74.0 million for the second quarter of 2026 was up $13.9 million, or 23.0%, from the same period in 2025. For the six months ended June 30, 2026, net interest income of $145.8 million was up $29.1 million, or 24.9%, from the same period in 2025. The increase in net interest income for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to an improved net interest margin, which was driven by growth in average loan balances, higher average earning asset yields and a reduction in average funding costs.

Current wording

Net interest income of $77.3 million for the third quarter of 2026 was up $13.4 million, or 21.0%, from the same period in 2025. For the nine months ended September 30, 2026, net interest income of $223.1 million was up $42.5 million, or 23.5%, from the same period in 2025. The increase in net interest income for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was primarily due to an improved net interest margin, which was driven by growth in average loan balances, higher average earning asset yields, and a reduction in average funding costs.

Previous wording

The provision for credit losses was $1.5 million for the three months ended June 30, 2026, compared to $2.8 million for the same period in 2025. For the six months ended June 30, 2026, the provision for credit losses was $3.0 million compared to $8.1 million for the same period in 2025.

Current wording

The provision for credit losses was $3.0 million for the three months ended September 30, 2026, compared to $2.5 million for the same period in 2025. For the nine months ended September 30, 2026, the provision for credit losses was $6.0 million compared to $10.6 million for the same period in 2025. For additional information, see the section titled "The Allowance for Credit Losses" below.

Previous wording

Noninterest income was $7.8 million for the three months ended June 30, 2026, up 2.5% compared to $7.6 million for the same period in 2025. The increase in noninterest income for the three months ended June 30, 2026 was mainly attributable to increases in gains on sales of residential loans and card services income, partially offset by lower income related to bank owned life insurance. For the six months ended June 30, 2026, noninterest income was $14.3 million compared to $16.3 million for the six months ended June 30, 2025. The decrease in year-to-date noninterest income compared to the same period in 2025 was mainly attributable to a $1.9 million gain on the sale of other real estate owned ("OREO") in the prior year period.

Current wording

Noninterest income was $7.1 million for the three months ended September 30, 2026, down $519,000 or 6.8% compared to $7.7 million for the same period in 2025. The decrease in noninterest income for the three months ended September 30, 2026 was primarily attributable to the absence of intercompany service charge revenue following the sale of the insurance segment in October 2025. For the nine months ended September 30, 2026, noninterest income was $21.4 million compared to $23.9 million for the nine months ended September 30, 2025. The decrease in year-to-date noninterest income compared to the same period in 2025 was mainly attributable to a $1.9 million gain on the sale of other real estate owned ("OREO") in the prior year period and the absence of intercompany service charge revenue following the sale of the insurance segment in October 2025.

Previous wording

Noninterest expense of $42.9 million for the three months ended June 30, 2026, increased by $2.5 million or 6.2% compared to the same period in 2025. For the six months ended June 30, 2026 noninterest expense of $86.5 million was up $6.4 million, or 8.0% compared to the same period in 2025. The increases in noninterest expense across both periods were primarily driven by salaries and employee benefits, technology, and net occupancy expense of premises.

Current wording

Noninterest expense of $44.8 million for the three months ended September 30, 2026, increased by $2.1 million or 4.8% compared to the same period in 2025. For the nine months ended September 30, 2026 noninterest expense of $131.3 million was up $8.4 million, or 6.9% compared to the same period in 2025. The increases in noninterest expense across both periods were primarily driven by salaries and employee benefits, technology, and net occupancy expense of premises.

Previous wording

The wealth management segment reported net income of $899,000 for the three months ended June 30, 2026, which was down $257,000 or 22.2% compared to the second quarter of 2025. For the six months ended June 30, 2026, net income of $1.8 million was down $165,000, or 8.3%, compared to the same period in the prior year. The decrease in net income for the three and six months ended June 30, 2026 compared to the prior year periods was primarily due to gains on the sale of certain customer accounts recorded in the second quarter of 2025, combined with an increase in noninterest expenses, mainly in technology and intercompany service allocations.

Current wording

The wealth management segment reported net income of $824,000 for the three months ended September 30, 2026, which was up $198,000 or 31.6% compared to the third quarter of 2025. For the nine months ended September 30, 2026, net income of $2.6 million was up $32,000, or 1.2%, compared to the same period in the prior year. The increase in net income for the three and nine months ended September 30, 2026 compared to the prior year periods was primarily attributable to higher assets under management and related fee revenue, driven primarily by favorable market performance.

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, 2026 and 2025 and the three months ended March 31, 2026:

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, 2026 and 2025 and the three months ended June 30, 2026:

Previous wording

Net interest income was $74.0 million and $145.8 million, respectively, for the three and six months ended June 30, 2026, up $13.9 million, or 23.0%, and $29.1 million, or 24.9%, respectively, from the same periods in 2025. The increase in net interest income compared to both prior year periods was due to improvement in net interest margin, which is discussed below, and growth in average loans.

Current wording

Net interest income was $77.3 million and $223.1 million, respectively, for the three and nine months ended September 30, 2026, up $13.4 million, or 21.0%, and $42.5 million, or 23.5%, respectively, from the same periods in 2025. The increase in net interest income compared to both prior year periods was due to improvement in net interest margin, which is discussed below, and growth in average loans and deposits.

Previous wording

Net interest margin for the three months ended June 30, 2026 was 3.58% compared to 3.08% for the same period in 2025. Net interest margin for the six months ended June 30, 2026 was 3.58% compared to 3.03% for the same period in 2025. The increase in net interest margin for the three and six months ended June 30, 2026 compared to the same periods in 2025 reflects growth in average loan balances, improved yields on average earnings assets, and lower funding costs.

Current wording

Net interest margin for the three months ended September 30, 2026 was 3.65% compared to 3.20% for the same period in 2025. Net interest margin for the nine months ended September 30, 2026 was 3.60% compared to 3.09% for the same period in 2025. The increase in net interest margin for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was primarily attributable to growth in average loan balances, improved yields on average interest-earning assets, and lower funding costs.

Previous wording

Interest income on securities, excluding dividends on FHLB stock, for the three and six months ended June 30, 2026, was up $4.6 million or 43.6% and $9.6 million or 46.7% respectively, over the same periods in 2025. The average yield on total securities for the three and six months ended June 30, 2026, was up 101 and 107 basis points, respectively, over the same periods in 2025, mainly a result of the reinvestment within the portfolio at higher yields, including the previously reported repositioning of the portfolio in the fourth quarter of 2025. Average balances for securities for the three and six months ended June 30, 2026 increased $35.5 million, or 2.1%, and $34.4 million, or 2.0%, respectively, from the same periods in 2025.

Current wording

Interest income on securities, excluding dividends on FHLB stock, for the three and nine months ended September 30, 2026, was up $4.5 million, or 40.7%, and $14.0 million, or 44.6%, respectively, over the same periods in 2025. The average yield on total securities for the three and nine months ended September 30, 2026, was up 95 and 103 basis points, respectively, over the same periods in 2025, mainly a result of the reinvestment within the portfolio at higher yields, including the previously reported repositioning of the portfolio in the fourth quarter of 2025. Average balances of securities for the three and nine months ended September 30, 2026 increased $43.9 million, or 2.6%, and $37.6 million, or 2.2%, respectively, from the same periods in 2025.

Previous wording

Interest expense for the three and six months ended June 30, 2026 decreased $1.6 million, or 4.7%, and $3.6 million or 5.4%, respectively, compared to the same periods in 2025, driven mainly by a decrease in average rates paid on interest-bearing liabilities, partially offset by higher average balances of interest-bearing liabilities. For the three and six months ended June 30, 2026, the average cost of interest-bearing liabilities was down 20 basis points and 21 basis points, respectively, from the same periods in 2025, while average interest-bearing liabilities were up $222.6 million or 4.1% and $207.7 million or 3.8%, respectively.

Current wording

Interest expense for the three and nine months ended September 30, 2026 decreased $1.7 million, or 4.9%, and $5.2 million or 5.2%, respectively, compared to the same periods in 2025, driven mainly by a decrease in average rates paid on interest-bearing liabilities, partially offset by higher average balances of interest-bearing liabilities. For the three and nine months ended September 30, 2026, the average cost of interest-bearing liabilities was down 21 basis points and 22 basis points, respectively, compared to the same periods in 2025, while average interest-bearing liabilities were up $214.6 million, or 3.9%, and $210.0 million or 3.8%, respectively. The decrease in average rates paid on interest-bearing liabilities for the three and nine months ended September 30, 2026 compared to the same periods in 2025 reflects favorable changes in funding mix with growth in average deposits and lower average borrowings, as well as market-related interest rate changes over those periods.

Previous wording

The average cost of interest-bearing deposits for both the three and six month periods ended June 30, 2026 was 2.07%, down 17 basis points over the same periods in 2025. Average interest-bearing deposits for the three and six months ended June 30, 2026, were up $224.6 million, or 4.6%, and $246.3 million, or 5.1%, respectively, from the same periods in 2025. Average noninterest deposits for the three and six months ended June 30, 2026, were up $72.6 million, or 4.0%, and $74.4 million, or 4.1%, respectively, from the same periods in 2025.

Current wording

The average cost of interest-bearing deposits for the three months ended September 30, 2026 was 2.10%, down 16 basis points from the same period in 2025, while the average cost of interest-bearing deposits for the nine month period ended September 30, 2026 was 2.08%, down 17 basis points from the same period in 2025. Average interest-bearing deposits for the three and nine months ended September 30, 2026, were up $272.2 million, or 5.5%, and $255.0 million, or 5.2%, respectively, from the same periods in 2025. Average noninterest bearing deposits for the three and nine months ended September 30, 2026, were up $89.2 million, or 4.7%, and $79.4 million, or 4.3%, respectively, from the same periods in 2025.

Previous wording

Average other borrowings for the three and six months ended June 30, 2026 were down $517,000 or 0.1%, and $35.4 million, or 6.4%, respectively, compared to the same periods in 2025. The average rate paid on other borrowings for the three and six months ended June 30, 2026 was down 43 basis points and 45 basis points, respectively, from the same periods in 2025.

Current wording

Average other borrowings for the three and nine months ended September 30, 2026 were down $51.3 million, or 9.6%, and $40.7 million, or 7.4%, respectively, compared to the same periods in 2025. The average rates paid on other borrowings for the three and nine months ended September 30, 2026 were both down 45 basis points, respectively, from the same periods in 2025.

Previous wording

Noninterest income of $13.1 million for the three months ended June 30, 2026, was down $9.4 million or 41.7% from the second quarter of 2025, and noninterest income of $25.0 million for the six months ended June 30, 2026, was down $22.6 million, or 47.5%, from the same period in the prior year. The decrease was mainly in insurance commissions and fees and reflects the sale of the Company's insurance subsidiary, TIA, in October 2025. Insurance revenues were $9.6 million and $21.2 million for the three and six months, respectively, ended June 30, 2025.

Current wording

Noninterest income of $12.6 million for the three months ended September 30, 2026, was down $11.0 million or 46.7% from the third quarter of 2025, and noninterest income of $37.5 million for the nine months ended September 30, 2026, was down $33.6 million, or 47.2%, from the same period in the prior year. The decrease was primarily in insurance commissions and fees and reflects the sale of the Company's insurance subsidiary, TIA, in the fourth quarter of 2025. Insurance commissions and fees were $11.3 million and $32.5 million for the three and nine months, respectively, ended September 30, 2025.

Previous wording

Wealth management fees of $5.2 million in the second quarter of 2026 were up $265,000 or 5.3% over the second quarter of 2025. For the first six months of 2026, wealth management fees were up $412,000, or 4.1% compared to the same period in 2025. 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 $3.1 billion at June 30, 2026, up $261.7 million or 9.2% from June 30, 2025.

Current wording

Wealth management fees of $5.3 million in the third quarter of 2026 were up $337,000 or 6.8% over the third quarter of 2025. For the first nine months of 2026, wealth management fees were up $749,000, or 5.0% compared to the same period in 2025. 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 $3.1 billion at September 30, 2026, up $91.3 million or 3.1% from September 30, 2025.

Previous wording

Other income of $2.8 million in the second quarter of 2026 was down $201,000, or 6.7%, compared to the same period in 2025. For the first six months of 2026, other income of $4.9 million was down $1.9 million, or 28.2%, compared to the same period in 2025. The decrease for the three months ended June 30, 2026 compared to the same period in 2025 was driven by a $236,000 reduction in BOLI income. The decrease for the six months ended June 30, 2026 compared to the same period in 2025 was driven by a $1.9 million gain on the sale of other real estate owned in 2025.

Current wording

Other income of $2.3 million in the third quarter of 2026 was down $252,000, or 9.9%, compared to the same period in 2025. For the first nine months of 2026, other income of $7.2 million was down $2.2 million, or 23.2%, compared to the same period in 2025. The decrease for the three months ended September 30, 2026 compared with the same period in 2025 was mainly driven by lower derivative swap fee income, down $139,000, and lower gains on the sales of residential mortgage loans, down $115,000. The decrease for the nine months ended September 30, 2026 compared to the same period in 2025 was driven by a $1.9 million gain on the sale of OREO recognized in the second quarter of 2025.

Previous wording

Noninterest expense of $47.1 million for the second quarter of 2026 was down $4.6 million or 8.8% from the second quarter of 2025. Noninterest expense of $94.8 million for the first six months of 2026 was down $7.4 million, or 7.3%, compared to the same period in 2025. The decrease in noninterest expense for both periods was primarily attributable to the sale of TIA in the fourth quarter of 2025.

Current wording

Noninterest expense of $49.1 million for the third quarter of 2026 was down $4.8 million or 8.8% from the third quarter of 2025. Noninterest expense of $143.9 million for the first nine months of 2026 was down $12.2 million, or 7.8%, compared to the same period in 2025. The decrease in noninterest expense for both periods was primarily attributable to the sale of TIA in the fourth quarter of 2025.

Previous wording

Noninterest expense for the second quarter and year-to-date periods in 2025 included the following expenses related to TIA: salaries and wages and other employee benefits of $6.2 million and $12.1 million, respectively, and other expenses of $1.5 million and $2.9 million, respectively. For the three and six months ended June 30, 2026, salaries and wages and other employee benefits decreased $4.7 million, or 14.0%, and $8.0 million, or 12.2%, respectively, compared to the prior year periods. These decreases were partially offset by annual merit increases and higher other employee benefit costs. Noninterest expense for the three and six months ended June 30, 2026, excluding salaries and wages and other employee benefits expenses, was up $143,000, or 0.8%, and $584,000, or 1.6%, mainly attributable to increases in technology, marketing, and buildings and grounds expenses.

Current wording

For the three and nine months ended September 30, 2026, salaries and wages and other employee benefits decreased $3.8 million, or 11.3%, and $11.8 million, or 11.9%, respectively, for the three and nine months ended September 30, 2026, respectively. These decreases were partially offset by annual merit increases and higher other employee benefit costs, including health insurance, as well as increases in technology expense.

Previous wording

The provision for income taxes was $9.2 million for an effective rate of 24.0% for the second quarter of 2026, compared to a tax provision of $6.8 million and an effective rate of 24.0% for the same quarter in 2025. For the first six months of 2026, the provision for income taxes was $17.6 million for an effective rate of 24.2% compared to tax provision of $12.9 million and an effective rate of 23.9% for the same period in 2025. 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 $9.1 million for an effective rate of 24.1% for the third quarter of 2026, compared to a tax provision of $7.4 million and an effective rate of 23.9% for the same quarter in 2025. For the first nine months of 2026, the provision for income taxes was $26.7 million for an effective rate of 24.1% compared to tax provision of $20.3 million and an effective rate of 23.9% for the same period in 2025. 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

Total assets were $8.8 billion at June 30, 2026, up $133.3 million or 1.5% from December 31, 2025. Cash and cash equivalents were up $14.9 million or 11.3%, total loans were up $150.9 million or 2.3%, total securities were up $11.0 million or 0.7% and loans held for sale were down $43.4 million compared to December 31, 2025. Total deposits were up $91.3 million or 1.3%, Federal funds purchased and securities sold under agreement to repurchase were up $86.1 million or 90.1%, and total borrowings were down $18.1 million or 3.2% from December 31, 2025.

Current wording

Total assets were $9.0 billion at September 30, 2026, up $310.2 million or 3.6% from December 31, 2025. Cash and cash equivalents were up $109.3 million or 82.3%, and total loans were up $278.7 million or 4.3%, while total securities were down $44.1 million or 2.6% and loans held for sale were down $43.4 million or 100.0% compared to December 31, 2025. Total deposits were up $471.3 million or 6.8%, Federal funds purchased and securities sold under agreement to repurchase were up $38.3 million or 40.1%, and total borrowings were down $157.7 million or 27.9% from December 31, 2025.

Previous wording

The Company’s securities portfolio was $1.7 billion at June 30, 2026 and December 31, 2025, representing 19.4% of total assets at June 30, 2026, compared to 19.6% of total assets at year end 2025. The following tables detail the composition of the securities portfolio:

Current wording

The Company’s securities portfolio was $1.7 billion at September 30, 2026 and December 31, 2025, representing 18.4% of total assets at September 30, 2026, compared to 19.6% of total assets at year end 2025. The following tables detail the composition of the securities portfolio:

Previous wording

As of June 30, 2026, the available-for-sale debt securities portfolio had net unrealized losses, which reflects the amount that the amortized cost exceeds fair value, of $26.8 million compared to net unrealized losses of $9.3 million at December 31, 2025. The increase 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 2026. 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, 2026, the available-for-sale debt securities portfolio had net unrealized losses, which reflects the amount that the amortized cost exceeds fair value, of $81.8 million compared to net unrealized losses of $9.3 million at December 31, 2025. The increase 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 2026. 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 did not recognize any net credit impairment charge to earnings on investment securities in the second quarter or year-to-date period ending June 30, 2026.

Current wording

The Company did not recognize any net credit impairment charge to earnings on investment securities in the third quarter or year-to-date period ending September 30, 2026.

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

1 Retail included 1.98% and 2.10%, respectively, of owner occupied real estate at June 30, 2026 and December 31, 2025.

Current wording

1 Retail included 1.90% and 2.10%, respectively, of owner occupied real estate at September 30, 2026 and December 31, 2025.

Previous wording

3 Industrial included 2.87% and 2.79%, respectively, of owner occupied real estate at June 30, 2026 and December 31, 2025.

Current wording

3 Industrial included 3.28% and 2.79%, respectively, of owner occupied real estate at September 30, 2026 and December 31, 2025.

Previous wording

4 Medical included 1.47% and 1.71%, respectively, of owner occupied real estate at June 30, 2026 and December 31, 2025.

Current wording

4 Medical included 1.44% and 1.71%, respectively, of owner occupied real estate at September 30, 2026 and December 31, 2025.

Previous wording

Total loans and leases of $6.6 billion at June 30, 2026 were up $150.9 million, or 2.3%, from December 31, 2025, mainly in the commercial real estate and commercial and industrial loan portfolios. As of June 30, 2026, total loans and leases represented 75.0% of total assets compared to 74.4% of total assets at December 31, 2025.

Current wording

Total loans and leases of $6.7 billion at September 30, 2026 were up $278.7 million, or 4.3%, from December 31, 2025, mainly in the commercial real estate and commercial and industrial loan portfolios. As of September 30, 2026, total loans and leases represented 74.9% of total assets compared to 74.4% of total assets at December 31, 2025.

Previous wording

Residential real estate loans, including home equity loans, were $1.6 billion at June 30, 2026, up $16.1 million or 1.0% compared to December 31, 2025, and comprised 24.4% of total loans and leases at June 30, 2026. The Company may sell residential real estate loans in the secondary market based on interest rate considerations. The Company's Asset/Liability Committee meets regularly and establishes standards for selling and retaining residential real estate mortgage originations. These residential real estate loans are generally sold to Federal Home Loan Mortgage Corporation ("FHLMC") without recourse in accordance with standard secondary market loan sale agreements. These residential real estate loans also are subject to customary representations and warranties made by the Company, including representations and warranties related to gross incompetence and fraud. The Company has not had to repurchase any loans as a result of these representations and warranties.

Current wording

Residential real estate loans, including home equity loans, were $1.6 billion at September 30, 2026, up $33.4 million or 2.1% compared to December 31, 2025, and comprised 24.2% of total loans and leases at September 30, 2026. The Company may sell residential real estate loans in the secondary market based on interest rate considerations. The Company's Asset/Liability Committee meets regularly and establishes standards for selling and retaining residential real estate mortgage originations. These residential real estate loans are generally sold to Federal Home Loan Mortgage Corporation ("FHLMC") without recourse in accordance with standard secondary market loan sale agreements. These residential real estate loans also are subject to customary representations and warranties made by the Company, including representations and warranties related to gross incompetence and fraud. The Company has not had to repurchase any loans as a result of these representations and warranties.

Previous wording

During the first six months of 2026 and 2025, the Company sold residential loans totaling $43.2 million and $34.6 million, respectively, recognizing gains of $1.5 million and $1.0 million, respectively. These residential real estate loans were sold without recourse in accordance with standard secondary market loan sale agreements. When residential mortgage loans are sold, the Company typically retains all servicing rights, which provides the Company with a source of fee income. Mortgage servicing rights totaled $1.9 million at June 30, 2026, and $1.7 million at December 31, 2025.

Current wording

During the first nine months of 2026 and 2025, the Company sold residential loans totaling $76.8 million and $63.3 million, respectively, recognizing gains of $1.9 million and $1.6 million, respectively. These residential real estate loans were sold without recourse in accordance with standard secondary market loan sale agreements. When residential mortgage loans are sold, the Company typically retains all servicing rights, which provides the Company with a source of fee income. Mortgage servicing rights totaled $2.1 million at September 30, 2026, and $1.7 million at December 31, 2025.

Previous wording

Commercial real estate loans and commercial and industrial loans totaled $3.7 billion and $1.2 billion, respectively, and represented 56.2% and 18.1%, respectively, of total loans and leases as of June 30, 2026. The commercial real estate portfolio was up $47.2 million, or 1.3%, compared to December 31, 2025, while commercial and industrial loans were up $90.5 million, or 8.2%, compared to December 31, 2025.

Current wording

Commercial real estate loans and commercial and industrial loans totaled $3.8 billion and $1.2 billion, respectively, and represented 56.2% and 18.3%, respectively, of total loans and leases as of September 30, 2026. The commercial real estate portfolio was up $117.8 million, or 3.2%, compared to December 31, 2025, while commercial and industrial loans were up $131.1 million, or 11.9%, compared to December 31, 2025.

Previous wording

As of June 30, 2026, agriculturally-related loans totaled $358.9 million, or 5.4%, of total loans and leases, compared to $348.8 million, or 5.4%, of total loans and leases at December 31, 2025. Agriculturally-related loans include loans to dairy farms and crop farms. Agriculturally-related loans are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral, personal guarantees, and government related guarantees. Agriculturally-related loans are generally secured by the assets or property being financed or other business assets such as accounts receivable, livestock, equipment or commodities/crops.

Current wording

As of September 30, 2026, agriculturally-related loans totaled $364.7 million, or 5.4%, of total loans and leases, compared to $348.8 million, or 5.4%, of total loans and leases at December 31, 2025. Agriculturally-related loans include loans to dairy farms and crop farms. Agriculturally-related loans are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral, personal guarantees, and government related guarantees. Agriculturally-related loans are generally secured by the assets or property being financed or other business assets such as accounts receivable, livestock, equipment or commodities/crops.

Previous wording

Activity in the Company’s allowance for credit losses during the first six months of 2026 and 2025 is illustrated in the table below:

Current wording

Activity in the Company’s allowance for credit losses during the first nine months of 2026 and 2025 is illustrated in the table below: