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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)July 21, 2023

Tompkins Financial Corporation
(Exact name of registrant as specified in its charter)
New York1-1270916-1482357
 (State or other jurisdiction
(Commission(IRS Employer
 of incorporation)File Number)Identification No.)
118 E. Seneca Street,
PO Box 460,
Ithaca
New York
14851
(Address of Principal executive offices) (Zip Code)
Registrant’s telephone number, including area code(607) 273-3210
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.10 par valueTMPNYSE American, LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition

        On July 21, 2023, Tompkins Financial Corporation, (the “Company”) issued a press release announcing its earnings for the calendar quarter ended June 30, 2023. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Item 8.01 Other Events

On July 21, 2023, the Company issued a press release announcing that its Board of Directors approved payment of a regular quarterly cash dividend of $0.60 per share, payable on August 12, 2023, to common shareholders of record on August 1, 2023. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.

On July 21, 2023, the Company also announced that its Board of Directors has authorized the repurchase of up to 400,000 shares of the Company’s outstanding common stock, par value $0.10 per share. This program replaces the Company’s existing 400,000 share repurchase program announced on October 22, 2021. The new stock repurchase program is expected to be completed over the next 24 months. The shares may be repurchased from time to time in open market transactions at prevailing market prices, including by means of a trading plan intended to comply with Rule 10b5-1 under the Exchange Act of 1934, as amended, in privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion in connection with its overall capital management strategies and will depend on a number of factors, including the market price of the Company's stock, general market and economic conditions, interest rates, financial forecasts, other strategic uses of capital, and applicable legal requirements. The Company has no obligation to repurchase any shares and may discontinue repurchases at any time. A copy of the press release is attached to this Report on Form 8-K as Exhibit 99.3 and is incorporated herein by reference.

The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock and general market and economic conditions, and applicable legal requirements. The information contained in this report, including Exhibits 99.1, 99.2, and 99.3, shall not be deemed “filed” with the SEC nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
        
Item 9.01 Financial Statements and Exhibits

(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits.

EXHIBIT INDEX

Exhibit No.        Description
        
99.1    Press Release of Tompkins Financial Corporation dated July 21, 2023
99.2    Press Release of Tompkins Financial Corporation dated July 21, 2023
99.3    Press Release of Tompkins Financial Corporation dated July 21, 2023
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

            TOMPKINS FINANCIAL CORPORATION

Date: July 21, 2023         /S/ Stephen S. Romaine    
             Stephen S. Romaine
             President and CEO



imagea.jpg


For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753

For Immediate Release
Friday, July 21, 2023

Tompkins Financial Corporation Reports Second Quarter Earnings

ITHACA, NY - Tompkins Financial Corporation (NYSE American: TMP)
Tompkins Financial Corporation ("Tompkins" or the "Company") reported diluted earnings per share of $0.59 for the second quarter of 2023, down 56.3% from the immediate prior quarter, and down 59.3% from diluted earnings per share of $1.45 reported in the second quarter of 2022. Net income for the second quarter of 2023 was $8.5 million, down $12.4 million, or 59.4%, when compared to the $20.9 million reported for the same period in 2022.

Results for the current quarter were negatively affected by the sale of $80.9 million of available-for-sale securities. Though the sale resulted in a $7.1 million pre-tax loss on securities transactions during the quarter (or $0.37 per share), the transaction is expected to have a positive impact on future earnings. The available-for-sale securities sold in the second quarter of 2023 had an average yield of 0.48%, with a remaining average life of 2.3 years. Approximately $15.0 million of the proceeds from sale were reinvested in available-for-sale securities with an average yield of approximately 4.30%, while the remaining proceeds were used to pay down approximately $65.0 million of overnight borrowings with the Federal Home Loan Bank ("FHLB").

For the year-to-date period ended June 30, 2023, diluted earnings per share were $1.94, down 36.4% from $3.05 for the same year-to-date period in 2022. Year-to-date net income was $27.9 million for the six month period ended June 30, 2023, down $16.3 million, or 36.9%, when compared to $44.1 million for the same period in 2022. Year-to-date results were also negatively impacted by the loss on securities transactions described above.

Tompkins President and CEO, Stephen Romaine, commented, "The economic environment remains challenging for the banking industry. Despite these challenges, which continue to negatively affect our net interest income, we saw some positive trends during the second quarter and first half of 2023. These included annualized loan growth of 6.0% from the immediate prior quarter, stable noninterest bearing deposit balances when compared to


the first quarter this year, and year-to-date annualized fee income growth of 1.3% over that same period in 2022."

SELECTED HIGHLIGHTS FOR THE PERIOD:
•Total loans at June 30, 2023 were $5.4 billion, up 6.0% annualized compared to the immediate prior quarter, and up $189.9 million, or 3.7%, from June 30, 2022.
•Total deposits at June 30, 2023 were $6.5 billion, down $54.4 million, or 0.84%, from March 31, 2023 and down $314.9 million, or 4.65%, from June 30, 2022. The year-over-year pace of decline of total deposits slowed in the second quarter, when compared to the year-over-year decline of 7.2% over the twelve month period ended March 31, 2023.
•Loan to deposit ratio remains stable at 83% as compared to 81% for the prior quarter
•Regulatory Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.63% at March 31, 2023 and 9.02% at June 30, 2022.
•Total nonperforming assets at June 30, 2023 represented 0.41% of total assets, an increase of 10.8% from the immediate prior quarter.

NET INTEREST INCOME
Net interest income was $51.9 million for the second quarter of 2023, down from $54.2 million for the first quarter of 2023 and $58.3 million for the second quarter of 2022. Net interest margin was 2.83% for the second quarter of 2023, compared to 2.99% reported for the first quarter of 2023 and 3.09% reported for the second quarter of 2022. The decrease in net interest income and net interest margin from the first quarter of 2023 and the second quarter of 2022 was due primarily to the increase in interest rates on interest-bearing liabilities outpacing increases on interest earning asset yields due to the higher interest rate environment.

For the year-to-date period ended June 30, 2023, net interest income was $106.1 million, down $8.7 million or 7.6% when compared to the same period in 2022.

Average loans for the quarter ended June 30, 2023 were up $53.4 million, or 1.0%, from the first quarter of 2023, and $189.4 million, or 3.7%, compared to the same period in 2022. The increase in average loans was mainly in the commercial real estate portfolio compared to the first quarter of 2023, and the quarter ended June 30, 2022. The average yield on interest-earning assets for the quarter ended June 30, 2023 was 3.91%, up 10 basis points compared to the quarter ended March 31, 2023, and up 68 basis points compared to the quarter ended June 30, 2022.

Average total deposits for the second quarter of 2023 were down $121.4 million, or 1.8%, compared to the first quarter of 2023, and down $414.4 million, or 6.0%, compared to the same period in 2022. The decrease was largely driven by a decline in stimulus funding and a tightening monetary policy that has led to a declining trend in bank deposits on a national level, as reported by the Federal Reserve. The cost of interest-bearing deposits increased to 1.41% for the second quarter of 2023, compared to 1.10% for the first quarter of 2023, and 0.18% for the second quarter of 2022. The cost of interest-bearing deposits for the second quarter of 2023 increased 31


basis points from March 31, 2023, which is down from the 41 basis point increase in the cost of interest-bearing deposits for the first quarter of 2023, compared to the fourth quarter of 2022. Noninterest bearing deposits to total deposits at June 30, 2023, were 31.4% compared to 30.9% at March 31, 2023. The average cost of interest-bearing liabilities for the second quarter of 2023 of 1.64%, represents an increase of 38 basis points over the first quarter of 2023, and an increase of 142 basis points over the same period in 2022.

NONINTEREST INCOME
Noninterest income of $12.6 million for the second quarter of 2023 was down $6.3 million, or 33.4%, compared to the second quarter of 2022. Year-to-date noninterest income of $33.0 million was down $5.9 million, or 15.2%, compared to the same six month period in 2022. Noninterest income represented 19.6% of total revenue for the quarter ended June 30, 2023, compared to 24.5% for the quarter ended June 30, 2022. The decrease in noninterest income in the second quarter of 2023 was largely due to the sale of available-for-sale securities, which resulted in the recognition of a pre-tax loss of $7.1 million. Partially offsetting the decreases in noninterest income in the second quarter of 2023 compared to the prior year quarter were increases in fee income of $337,000 and an increase in income on bank-owned life insurance of $383,000.

NONINTEREST EXPENSE
Noninterest expense was $52.0 million for the second quarter of 2023, which was up $2.8 million, or 5.8%, over the second quarter of 2022. For the year-to-date period, noninterest expense of $102.1 million was up $6.2 million, or 6.4%, from the same period in 2022. The increase in noninterest expense in the second quarter of 2023 over the same quarter last year was mainly in higher personnel-related expenses, up $1.2 million. The increase in personnel-related expenses was mainly in salaries and wages and reflects annual merit adjustments. Significant components that increased in other expenses were professional fees which were up $405,000, other losses which were up $517,000, and marketing which was up $232,000, in each case as compared to the second quarter of 2022.

INCOME TAX EXPENSE
The Company's effective tax rate was 17.3% for the second quarter of 2023, compared to 23.2% for the same period in 2022. The effective tax rate for the six months ended June 30, 2023 was 21.6%, compared to 23.1% reported for the same period in 2022.

The decrease in the effective tax rate for the three and six months ended June 30, 2023, compared to the same periods in 2022 is largely due to the anticipated retention of certain New York State tax benefits. The Company's banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim the benefit is that the consolidated company has qualified average assets of no more than $8.0 billion for the taxable year. Based on current estimates of average assets during 2023, the Company expects to retain the benefits in 2023.





ASSET QUALITY
The allowance for credit losses represented 0.91% of total loans and leases at June 30, 2023, up from 0.87% at March 31, 2023, and up from 0.85% at June 30, 2022. The ratio of the allowance to total nonperforming loans and leases was 154.76% for the second quarter of 2023, compared to 162.11% at March 31, 2023 and 147.95% at June 30, 2022.

Provision for credit losses for the second quarter of 2023 was $2.3 million compared to $856,000 for the same period in 2022. Provision for credit losses for the six months ended June 30, 2023 was $1.4 million, compared to $336,000 for the six months ended June 30, 2022. The increase in provision expense for both the quarter and year-to-date periods was mainly driven by weaker economic forecasts, loan growth, and changes in asset quality. Net recoveries for the quarter ended June 30, 2023 were $27,000 compared to net recoveries of $887,000 reported for the same period in 2022.

Nonperforming assets represented 0.41% of total assets at June 30, 2023, down from 0.43% at December 31, 2022 and up from the 0.38% reported at June 30, 2022. At June 30, 2023, nonperforming loans and leases totaled $31.4 million, compared to $32.8 million at December 31, 2022 and $29.6 million at June 30, 2022. The increase in loans past due 30-89 days at quarter end June 30, 2023 was mainly due to the inclusion of a $15.3 million commercial real estate loan.

Special Mention and Substandard loans and leases totaled $118.1 million at June 30, 2023, reflecting an increase from the $98.3 million reported at December 31, 2022, and $115.0 million at June 30, 2022. The increase over year-end in Special Mention and Substandard was mainly a result of the downgrade of one commercial real estate loan added to Special Mention during the second quarter of 2023 and the downgrade of one commercial real estate loan previously reported as Special Mention.

CAPITAL POSITION
Capital ratios at June 30, 2023 remained well above the regulatory minimums for well-capitalized institutions. The ratio of total capital to risk-weighted assets was 14.48% at June 30, 2023, compared to 14.42% at December 31, 2022 and 14.07% at June 30, 2022. The ratio of Tier 1 capital to average assets was 9.57% at June 30, 2023, compared to 9.34% at December 31, 2022 and 9.02% at June 30, 2022.

During the second quarter of 2023, the Company repurchased 108,219 common shares at an aggregate cost of $6.3 million. These shares were purchased under the Company's Stock Repurchase Program announced in the third quarter of 2021.

The Company announced today that its Board of Directors has authorized a new Stock Repurchase Program to repurchase up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share, from time to time, over the next 24 months.





LIQUIDITY POSITION
The Company's liquidity position remained stable from the first quarter of 2023. Liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, Federal Reserve Bank Discount Window advances and FHLB advances. The Company maintains ready access liquidity of $1.7 billion, or 22.3% of total assets at June 30, 2023. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At June 30, 2023 the Company had an available borrowing capacity at the FHLB of $1.3 billion, unchanged from the first quarter of 2023. Through various programs at the Federal Reserve Bank, the Company has the ability to use certain unencumbered mortgage-related assets and securities to secure borrowings from the Federal Reserve Bank's Discount Window. At June 30, 2023 the available borrowing capacity with the Federal Reserve Bank was $245.7 million, secured by investment securities. In addition to the available borrowing lines at the FHLB and Federal Reserve Bank, at June 30, 2023, the Company maintained $137.7 million of unencumbered securities which could be pledged to further enhance secured borrowing capacity.

ABOUT TOMPKINS FINANCIAL CORPORATION
Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release 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", or "anticipate", the negative and other variations of these terms and other similar words. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain 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 in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission are among those that could cause actual results to differ materially from the forward-looking statements: changes in general economic, market and regulatory conditions; our ability to attract and retain deposits and access other sources of liquidity; GDP growth; 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 banks, bank holding companies and/or financial holding companies, such as state and local government mandates, SEC rule-making, the Dodd-Frank Act and Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; 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; technological developments and changes; cyber security 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 regulation; reliance on large customers; uncertainties arising from national and global events, including the war in Ukraine, as well as the potential impact of widespread protests, civil unrest, political uncertainty on the economy and the financial services industry, and pandemics or other public health crises, including the COVID-19 pandemic; and access to financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses. The Company does not undertake any obligation to update its forward-looking statements.


TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data)As ofAs of
ASSETS06/30/202312/31/2022
(Audited)
Cash and noninterest bearing balances due from banks$65,916 $18,572 
Interest bearing balances due from banks15,698 59,265 
Cash and Cash Equivalents81,614 77,837 
Available-for-sale debt securities, at fair value (amortized cost of $1,688,051 at June 30, 2023 and $1,831,791 at December 31, 2022)1,468,003 1,594,967 
Held-to-maturity securities, at amortized cost (fair value of $262,444 at June 30, 2023 and $261,692 at December 31, 2022)312,369 312,344 
Equity securities, at fair value 778 777 
Total loans and leases, net of unearned income and deferred costs and fees5,352,365 5,268,911 
Less: Allowance for credit losses48,545 45,934 
Net Loans and Leases5,303,820 5,222,977 
Federal Home Loan Bank and other stock23,649 17,720 
Bank premises and equipment, net81,087 82,140 
Corporate owned life insurance86,709 85,556 
Goodwill92,602 92,602 
Other intangible assets, net2,513 2,708 
Accrued interest and other assets173,094 181,058 
Total Assets$7,626,238 $7,670,686 
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market3,659,220 3,820,739 
Time770,594 631,411 
Noninterest bearing2,024,837 2,150,145 
Total Deposits6,454,651 6,602,295 
Federal funds purchased and securities sold under agreements to repurchase50,483 56,278 
Other borrowings387,100 291,300 
Other liabilities97,563 103,423 
Total Liabilities$6,989,797 $7,053,296 
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 14,441,413 at June 30, 2023; and 14,555,741 at December 31, 20221,444 1,456 
Additional paid-in capital298,133 302,763 
Retained earnings537,095 526,727 
Accumulated other comprehensive loss(195,520)(208,689)
Treasury stock, at cost – 124,265 shares at June 30, 2023, and 128,749 shares at December 31, 2022(6,185)(6,279)
Total Tompkins Financial Corporation Shareholders’ Equity634,967 615,978 
Noncontrolling interests1,474 1,412 
Total Equity$636,441 $617,390 
Total Liabilities and Equity$7,626,238 $7,670,686 


TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited)Three Months EndedSix Months Ended
06/30/202306/30/202206/30/202306/30/2022
INTEREST AND DIVIDEND INCOME
Loans$63,527 $52,505 $124,369 $103,636 
Due from banks183 64 322 105 
Available-for-sale debt securities6,618 7,063 13,361 13,833 
Held-to-maturity securities1,219 1,201 2,433 2,330 
Federal Home Loan Bank and other stock323 120 623 225 
Total Interest and Dividend Income71,870 $60,953 $141,108 $120,129 
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more2,526 400 4,313 826 
Other deposits13,119 1,647 23,513 3,267 
Federal funds purchased and securities sold under agreements to repurchase15 15 29 31 
Other borrowings4,314 629 7,111 1,129 
Total Interest Expense19,974 2,691 34,966 5,253 
Net Interest Income51,896 58,262 106,142 114,876 
Less: Provision for credit loss expense2,253 856 1,428 336 
Net Interest Income After Credit for Credit Loss Expense49,643 57,406 104,714 114,540 
NONINTEREST INCOME
Insurance commissions and fees8,672 8,429 18,181 17,746 
Wealth management fees4,678 4,596 9,187 9,513 
Service charges on deposit accounts1,640 1,756 3,386 3,535 
Card services income3,087 2,959 5,769 5,502 
Other income1,603 1,241 3,544 2,717 
Net loss on securities transactions(7,065)(37)(7,052)(84)
Total Noninterest Income12,615 18,944 33,015 38,929 
NONINTEREST EXPENSE
Salaries and wages25,337 24,396 49,849 47,668 
Other employee benefits6,647 6,341 13,388 12,138 
Net occupancy expense of premises3,327 3,131 6,626 6,672 
Furniture and fixture expense2,105 2,004 4,159 3,995 
Amortization of intangible assets84 219 167 437 
Other operating expense14,468 13,029 27,937 25,049 
Total Noninterest Expenses51,968 49,120 102,126 95,959 
Income Before Income Tax Expense10,290 27,230 35,603 57,510 
Income Tax Expense1,784 6,329 7,685 13,305 
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation8,506 20,901 27,918 44,205 
Less: Net Income Attributable to Noncontrolling Interests31 32 62 63 
Net Income Attributable to Tompkins Financial Corporation$8,475 20,869 27,856 44,142 
Basic Earnings Per Share$0.59 $1.45 $1.94 $3.06 
Diluted Earnings Per Share$0.59 $1.45 $1.94 $3.05 
  



Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Quarter EndedQuarter Ended
June 30, 2023June 30, 2022
AverageAverage
BalanceAverageBalanceAverage
(Dollar amounts in thousands)(QTD)InterestYield/Rate(QTD)InterestYield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks$13,585 $183 5.40 %$88,094 $64 0.29 %
Securities (1)
U.S. Government securities1,972,719 7,304 1.49 %2,305,102 7,746 1.35 %
State and municipal (2)92,194 590 2.57 %97,481 619 2.55 %
Other securities (2)3,288 56 6.86 %3,337 28 3.40 %
Total securities2,068,201 7,950 1.54 %2,405,920 8,393 1.40 %
FHLBNY and FRB stock23,211 323 5.59 %12,234 120 3.92 %
Total loans and leases, net of unearned income (2)(3)5,304,717 63,709 4.82 %5,115,340 52,733 4.14 %
Total interest-earning assets7,409,714 72,165 3.91 %7,621,588 61,310 3.23 %
Other assets226,086 209,057 
Total assets$7,635,800 $7,830,645 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market$3,701,229 $10,590 1.15 %$4,073,279 $890 0.09 %
Time deposits745,970 5,055 2.72 %603,791 1,157 0.77 %
Total interest-bearing deposits4,447,199 15,645 1.41 %4,677,070 2,047 0.18 %
Federal funds purchased & securities sold under agreements to repurchase56,083 15 0.11 %54,885 15 0.11 %
Other borrowings379,744 4,314 4.56 %169,390 629 1.49 %
Total interest-bearing liabilities4,883,026 19,974 1.64 %4,901,345 2,691 0.22 %
Noninterest bearing deposits2,004,560 2,189,132 
Accrued expenses and other liabilities97,660 100,813 
Total liabilities6,985,246 7,191,290 
Tompkins Financial Corporation Shareholders’ equity649,097 637,896 
Noncontrolling interest1,457 1,459 
Total equity650,554 639,355 
Total liabilities and equity$7,635,800 $7,830,645 
Interest rate spread2.27 %3.01 %
Net interest income/margin on earning assets52,191 2.83 %58,619 3.09 %
Tax Equivalent Adjustment(295)(357)
Net interest income per consolidated financial statements$51,896 $58,262 



Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
Year to Date Period EndedYear to Date Period Ended
June 30, 2023June 30, 2022
AverageAverage
BalanceBalanceAverage
(Dollar amounts in thousands)(YTD)Interest(YTD)InterestYield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks$13,161 $322 4.93 %$110,984 $105 0.19 %
Securities (1)
U.S. Government securities2,002,846 14,728 1.48 %2,299,389 15,108 1.32 %
State and municipal (2)92,695 1,188 2.58 %99,602 1,267 2.57 %
Other securities (2)3,286 110 6.70 %3,363 51 3.06 %
Total securities2,098,827 16,026 1.54 %2,402,354 16,426 1.38 %
FHLBNY and FRB stock19,998 623 6.29 %11,172 225 4.06 %
Total loans and leases, net of unearned income (2)(3)5,278,145 124,744 4.77 %5,085,808 104,088 4.13 %
Total interest-earning assets7,410,131 141,715 3.86 %7,610,318 120,844 3.20 %
Other assets224,671 259,809 
Total assets$7,634,802 $7,870,127 
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market$3,767,032 $19,230 1.03 %$4,116,870 $1,638 0.08 %
Time deposits710,119 8,596 2.44 %617,616 2,455 0.80 %
Total interest-bearing deposits4,477,151 27,826 1.25 %4,734,486 4,093 0.17 %
Federal funds purchased & securities sold under agreements to repurchase56,799 29 0.10 %59,536 31 0.11 %
Other borrowings325,052 7,111 4.41 %147,466 1,129 1.54 %
Total interest-bearing liabilities4,859,002 34,966 1.45 %4,941,488 5,253 0.21 %
Noninterest bearing deposits2,034,961 2,149,201 
Accrued expenses and other liabilities99,905 103,451 
Total liabilities6,993,868 7,194,140 
Tompkins Financial Corporation Shareholders’ equity639,494 674,545 
Noncontrolling interest1,440 1,442 
Total equity640,934 675,987 
Total liabilities and equity$7,634,802 $7,870,127 
Interest rate spread2.41 %2.99 %
Net interest income/margin on earning assets106,749 2.90 %115,591 3.06 %
Tax Equivalent Adjustment(607)(715)
Net interest income per consolidated financial statements$106,142 $114,876 


Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)
Quarter-EndedYear-Ended
Period End Balance SheetJun-23Mar-23Dec-22Sep-22Jun-22Dec-22
Securities$1,781,150 $1,899,001 $1,908,088 $2,054,036 $2,204,851 $1,908,088 
Total Loans5,352,365 5,273,671 5,268,911 5,208,436 5,162,503 5,268,911 
Allowance for credit losses48,545 46,099 45,934 44,772 43,793 45,934 
Total assets7,626,238 7,644,371 7,670,686 7,779,941 7,842,461 7,670,686 
Total deposits6,454,651 6,509,009 6,602,295 6,936,726 6,769,521 6,602,295 
Federal funds purchased and securities sold under agreements to repurchase50,483 63,491 56,278 55,340 50,075 56,278 
Other borrowings387,100 327,000 291,300 101,000 295,600 291,300 
Total common equity634,967 648,322 615,978 571,453 622,843 615,978 
Total equity636,441 649,765 617,390 572,959 624,318 617,390 

Average Balance Sheet
Average earning assets$7,409,714 $7,410,553 $7,568,656 $7,639,123 $7,621,588 $7,607,078 
Average assets7,635,800 7,633,793 7,721,335 7,853,847 7,830,645 7,828,520 
Average interest-bearing liabilities4,883,026 4,834,712 4,828,561 4,861,857 4,901,345 4,892,952 
Average equity650,554 631,208 580,720 635,324 639,354 641,726 
Share data
Weighted average shares outstanding (basic)14,314,133 14,326,595 14,308,323 14,289,022 14,317,415 14,328,280 
Weighted average shares outstanding (diluted)14,346,787 14,389,673 14,385,884 14,367,149 14,387,601 14,404,294 
Period-end shares outstanding14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 
Common equity book value per share$44.08 $44.65 $42.42 $39.45 $42.94 $42.42 
Tangible book value per share (Non-GAAP)**$37.54 $38.16 $35.93 $32.93 $36.42 $35.93 
**See "Non-GAAP measures" below for a discussion of non-GAAP financial measures and a reconciliation of non-GAAP financial measures to the most directly comparable financial measures presented in accordance with GAAP.
Income Statement
Net interest income$51,896 $54,246 $57,294 $58,111 $58,262 $230,281 
(Credit) provision for credit loss expense (5)2,253 (825)1,397 1,056 856 2,789 
Noninterest income12,615 20,400 18,351 20,692 18,944 77,972 
Noninterest expense (5)51,968 50,158 50,190 49,602 49,120 195,751 
Income tax expense1,784 5,901 4,478 6,774 6,329 24,557 
Net income attributable to Tompkins Financial Corporation8,475 19,381 19,548 21,340 20,869 85,030 
Noncontrolling interests31 31 32 31 32 126 
Basic earnings per share (4)0.59 1.35 1.36 1.49 1.45 5.92 
Diluted earnings per share (4)0.59 1.35 1.36 1.48 1.45 5.89 
Nonperforming Assets
Nonaccrual loans and leases$31,333 $28,424 $28,289 $30,013 $24,665 $28,289 
Loans and leases 90 days past due and accruing34 13 25 161 62 25 
Performing troubled debt restructuring*0 0 4,530 4,730 4,872 4,530 
Total nonperforming loans and leases31,367 28,437 32,844 34,904 29,599 32,844 
OREO36 36 152 335 122 152 
Total nonperforming assets$31,403 $28,473 $32,996 $35,239 $29,721 $32,996 
*No amount shown for periods subsequent to the Company's adoption of ASU 2022-02 effective January 1, 2023.


Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Quarter-EndedYear-Ended
Delinquency - Total loan and lease portfolioJun-23Mar-23Dec-22Sep-22Jun-22Dec-22
Loans and leases 30-89 days past due and
accruing$20,255 $5,894 $3,172 $3,160 $9,837 $3,172 
Loans and leases 90 days past due and accruing34 13 25 161 62 25 
Total loans and leases past due and accruing20,289 5,907 3,197 3,321 9,899 3,197 

Allowance for Credit Losses
Balance at beginning of period$46,099 $45,934 $44,772 $43,793 $42,126 $42,843 
Impact of adopting ASC 3260 64 0 0 0 0 
Provision (credit) for credit losses2,419 (1,180)1,352 1,101 780 $2,499 
Net loan and lease (recoveries) charge-offs (27)(1,281)190 122 (887)$(592)
Allowance for credit losses at end of period$48,545 $46,099 $45,934 $44,772 $43,793 $45,934 
Allowance for Credit Losses - Off-Balance Sheet Exposure
Balance at beginning of period$3,151 $2,796 $2,751 $2,796 $2,720 $2,506 
(Credit) provision for credit losses(166)355 45 (45)76 $290 
Allowance for credit losses at end of period$2,985 $3,151 $2,796 $2,751 $2,796 $2,796 
Loan Classification - Total Portfolio
Special Mention$56,305 $39,255 $49,752 $66,730 $72,270 $49,752 
Substandard61,820 46,315 48,537 40,007 42,756 48,537 

Ratio Analysis
Credit Quality
Nonperforming loans and leases/total loans and leases0.59 %0.54 %0.62 %0.67 %0.57 %0.62 %
Nonperforming assets/total assets0.41 %0.37 %0.43 %0.45 %0.38 %0.43 %
Allowance for credit losses/total loans and leases0.91 %0.87 %0.87 %0.86 %0.85 %0.87 %
Allowance/nonperforming loans and leases154.76 %162.11 %139.86 %128.27 %147.95 %139.85 %
Net loan and lease losses annualized/total average loans and leases0.00 %(0.10)%0.01 %0.01 %(0.07)%(0.01)%
Capital Adequacy
Tier 1 Capital (to average assets)9.57 %9.63 %9.34 %9.14 %9.02 %9.34 %
Total Capital (to risk-weighted assets)14.48 %14.62 %14.42 %14.26 %14.07 %14.42 %
Profitability (period-end)
Return on average assets *0.45 %1.03 %1.00 %1.08 %1.07 %1.09 %
Return on average equity *5.22 %12.45 %13.36 %13.33 %13.09 %13.25 %
Net interest margin (TE) *2.83 %2.99 %3.02 %3.04 %3.09 %3.05 %
* Quarterly ratios have been annualized










Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued

Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the below tables. The Company believes the non-GAAP measures provide meaningful comparisons of our underlying operational performance and facilitate management's and investors' assessments of business and performance trends in comparison to others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a measure of the Company's profitability or liquidity; they are in addition to, and are not a substitute for, financial measures under GAAP. The non-GAAP financial measures presented herein may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.

Reconciliation of Tangible Book Value Per Share (non-GAAP) to Common Equity Book Value Per Share (GAAP)
Quarter-EndedYear-ended
Jun-23Mar-23Dec-22Sep-22Jun-22Dec-22
Total common equity$634,967 $648,322 $615,978 $571,453 $622,843 $615,978 
Less: Goodwill and intangibles94,16994,25394,33694,55494,61794,336 
Tangible common equity (Non-GAAP)540,798 554,069 521,642 476,899 528,226 521,642 
Ending shares outstanding14,405,503 14,519,748 14,519,831 14,483,757 14,504,604 14,519,831 
Tangible book value per share (Non-GAAP)$37.54 $38.16 $35.93 $32.93 $36.42 $35.93 

(1) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(2) Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2023 and 2022 to increase tax exempt interest income to taxable-equivalent basis.
(3) Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company's consolidated financial statements included in Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
(4) Earnings per share for the full fiscal year may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(5) Amounts in prior periods' financial statements are reclassified when necessary to conform to the current period's presentation.


image.jpg
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753

For Immediate Release
Friday, July 21, 2023

Tompkins Financial Corporation Reports Cash Dividend
ITHACA, NY - Tompkins Financial Corporation (NYSE American:TMP)
Tompkins Financial Corporation announced today that its Board of Directors approved payment of a regular quarterly cash dividend of $0.60 per share, payable on August 12, 2023, to common shareholders of record on August 1, 2023.


Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank and Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.




tomp_tflogocolora.jpg
For more information contact:
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP, CFO & COO
Tompkins Financial Corporation (888) 503-5753
For Immediate Release
Friday, July 21, 2023

Tompkins Financial Corporation Announces Stock Repurchase Program
ITHACA, NY - Tompkins Financial Corporation (NYSE American:TMP)

Tompkins Financial Corporation announced today that its Board of Directors has authorized a new stock repurchase program of up to 400,000 shares of the Company's outstanding common stock, par value $0.10 per share. This program replaces the Company's existing 400,000 share repurchase program announced on October 22, 2021.

The new stock repurchase program is expected to be completed over the next 24 months. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion in connection with its overall capital management strategies and will depend on a number of factors, including the market price of the Company's stock, general market and economic conditions, interest rates, financial forecasts, other strategic uses of capital, and applicable legal requirements. The Company has no obligation to repurchase any shares and may discontinue repurchases at any time.

About Tompkins Financial Corporation
Tompkins Financial Corporation is a banking and financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Community Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by use of such words as “may”, “will”, “estimate”, “intend”, “continue”, “believe”, “expect”, “plan”, or “anticipate”, the negative and other variations of these terms and other similar words. This press release includes forward‑looking statements with respect to corporate plans and objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward‑looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward‑looking statements.

v3.23.2
Cover Page
Jul. 21, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 21, 2023
Entity Registrant Name Tompkins Financial Corp
Entity Incorporation, State or Country Code NY
Entity File Number 1-12709
Entity Tax Identification Number 16-1482357
Entity Address, Address Line One 118 E. Seneca Street,
Entity Address, Address Line Two PO Box 460,
Entity Address, City or Town Ithaca
Entity Address, State or Province NY
Entity Address, Postal Zip Code 14851
City Area Code (607)
Local Phone Number 273-3210
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol TMP
Security Exchange Name NYSEAMER
Entity Emerging Growth Company false
Entity Central Index Key 0001005817
Amendment Flag false
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