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TOMPKINS FINANCIAL CORP (TMP)·Q2 2025 Earnings Summary

Executive Summary

  • EPS of $1.50, up 9.5% QoQ and 36.4% YoY; EPS beat consensus by $0.07 (4.9%) while revenue slightly missed by ~$1.14M (−1.4%).*
  • Net interest margin expanded to 3.08% (+10 bps QoQ; +35 bps YoY), driving net interest income up 6.1% QoQ and 18.0% YoY.
  • Asset quality mixed: nonperforming assets fell to 0.63% of total assets (from 0.87% in Q1), but net charge-offs rose to $5.3M due to a $4.7M partial charge-off on one CRE relationship.
  • Capital return: $0.62 quarterly dividend declared and a new authorization to repurchase up to 400,000 shares over 24 months—potential near-term stock support.
  • Management tone constructive: “continued positive momentum” from NIM expansion, loan/deposit growth, and fee-based revenue strength.

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.08% (+10 bps QoQ; +35 bps YoY), supported by higher yields on interest-earning assets and loan growth; cost of funds held at 1.84%.
  • Loan and deposit growth continued: total loans +$106.0M QoQ (+7.0% annualized), deposits $6.7B (flat QoQ, +6.8% YoY).
  • Management highlighted momentum: “Net income year-to-date was up over 25%... mainly driven by net interest margin expansion and growth throughout our business.”

What Went Wrong

  • Elevated credit costs: provision $2.8M (vs $5.3M in Q1), net charge-offs $5.3M driven by a $4.7M partial charge-off on a single CRE relationship.
  • Card services income declined YoY by $128K (−3.9%); fee mix shift partially offset by insurance (+$522K, +5.7%) and wealth management (+$115K, +2.4%).
  • Noninterest expense increased YoY by $1.7M (+3.4%), primarily higher personnel costs (+6.6%).

Financial Results

Key P&L Metrics (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Diluted EPS ($)$1.37 $1.37 $1.50
Net Income ($MM)$19.66 $19.68 $21.47
Net Interest Income ($MM)$56.28 $56.66 $60.13
Noninterest Income ($MM)$20.83 $25.03 $22.51
Provision for Credit Losses ($MM)$1.41 $5.29 $2.78
Noninterest Expense ($MM)$49.97 $50.61 $51.62
Income Tax Expense ($MM)$6.05 $6.12 $6.77

YoY Comparison

MetricQ2 2024Q2 2025
Diluted EPS ($)$1.10 $1.50
Net Income ($MM)$15.68 $21.47
Net Interest Income ($MM)$50.95 $60.13
Noninterest Income ($MM)$21.78 $22.51
Provision for Credit Losses ($MM)$2.17 $2.78
Net Interest Margin (TE, %)2.73% 3.08%
Average Yield on Earning Assets (%)4.56% 4.79%
Average Cost of Funds (%)1.96% 1.84%

Estimates vs Actual (Q2 2025)

MetricActualConsensus EstimateSurprise
EPS ($)$1.50 $1.43*+$0.07 (4.9%)*
Revenue ($MM)$79.86*$81.10*−$1.14 (−1.4%)*

Values with * retrieved from S&P Global.

Noninterest Income Mix (oldest → newest)

Component ($MM)Q2 2024Q1 2025Q2 2025
Insurance commissions & fees$9.09 $11.60 $9.61
Wealth management fees$4.85 $5.12 $4.96
Service charges on deposits$1.77 $1.81 $1.79
Card services income$3.28 $2.63 $3.15
Other income$2.80 $3.87 $3.00
Net gain (loss) on securities$(0.01) $0.01 $0.00

KPIs (oldest → newest)

KPIQ4 2024Q1 2025Q2 2025
Net Interest Margin (TE, %)2.93% 2.98% 3.08%
Return on Avg Assets (%)0.98% 0.99% 1.05%
Return on Avg Equity (%)10.91% 10.96% 11.48%
Avg Yield on Earning Assets (%)4.67% 4.69% 4.79%
Avg Cost of Deposits (%)1.67% 1.63% 1.64%
Avg Cost of Funds (%)1.88% 1.84% 1.84%
Loan-to-Deposit Ratio (%)93.0% 89.8% 91.9%
Tier 1 Capital / Avg Assets (%)9.27% 9.31% 9.36%
Total Capital / RWA (%)13.08% 13.28% 13.15%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Dividend per ShareQ3 2025 payable 8/15/2025Not disclosed in Q2 materials$0.62 per share Maintained (rate unchanged indicated)
Stock Repurchase AuthorizationNext 24 months400,000 shares authorized (7/21/2023) Up to 400,000 shares authorized Maintained/renewed (program replaced)

No formal revenue/EPS/NIM/OpEx guidance was provided in Q2 materials.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Net Interest Margin & FundingNIM rose to 2.93% Q4 on lower funding costs; average deposit growth helped mix. NIM 3.08%; yield on earning assets 4.79%; cost of funds 1.84% unchanged QoQ. Improving
Loans & DepositsQ1: Loans +$46.7M QoQ; deposits +$281.7M QoQ. Q2: Loans +$106.0M QoQ; deposits $6.7B, flat QoQ, +6.8% YoY. Stable to improving
Asset Quality / CREQ1: Added $4.2M specific reserve to one $18.1M CRE relationship; NPA 0.87%. Q2: $4.7M partial charge-off on same CRE; net charge-offs $5.3M; NPA down to 0.63%. Mixed (idiosyncratic CRE resolved, broader NPA improved)
LiquidityQ4/Q1: Stable; ready access to ~$1.3–$1.5B liquidity. Q2: Ready access to $1.5B (18.0% of assets). Stable
Fee-Based BusinessesQ4: YoY growth across fee lines. Q2: Insurance +$522K YoY; wealth +$115K; card −$128K. Mixed
Capital & ReturnsQ4/Q1: Capital ratios comfortably above well-capitalized. Q2: Tier 1 9.36%; new 400k share repurchase; $0.62 dividend. Shareholder-friendly

Note: No earnings call transcript was available for Q2 2025; themes reflect press releases and 8-K exhibits.

Management Commentary

  • “Our second quarter financial results reflect continued positive momentum. Net income year-to-date was up over 25%… mainly driven by net interest margin expansion and growth throughout our business.” — Stephen S. Romaine, President & CEO.
  • “[Balance sheet] remains well positioned to continue to support growth… committed to supporting our local communities, and building quality customer relationships.” — Stephen S. Romaine.

Q&A Highlights

  • No Q2 2025 earnings call transcript was found; Q&A highlights and any call-based guidance clarifications are unavailable.

Estimates Context

How results compared to S&P Global consensus:

  • EPS beat: $1.50 vs $1.43 (+$0.07, +4.9%); coverage thin (1 estimate).*
  • Revenue miss: $79.86M vs $81.10M (−$1.14M, −1.4%); coverage thin (1 estimate).*

Consensus snapshot (periods oldest → newest):

MetricQ2 2024Q1 2025Q2 2025Q3 2025
EPS Consensus Mean ($)0.90* (actual 1.10 )1.31* (actual 1.37 )1.43* (actual 1.50 )1.70* (actual 1.65*)
Revenue Consensus Mean ($MM)71.30* (actual 70.56*)79.38* (actual 76.41*)81.10* (actual 79.86*)87.00* (actual 84.95*)
EPS — # of Estimates1*2*1*1*
Revenue — # of Estimates1*2*1*1*

Values with * retrieved from S&P Global.

Implications: EPS beat amid NIM expansion likely supports upward revisions to NII/EPS, while revenue miss (consensus definition vs bank-reported line items) is modest and may reflect classification differences common in financials.*

Key Takeaways for Investors

  • NIM expansion to 3.08% and sequential NII growth (+6.1%) are the primary drivers of earnings momentum—sustained rate/yield tailwinds could keep EPS trajectories favorable.
  • Credit costs remain the swing factor: the idiosyncratic $4.7M CRE charge-off lifted net C/Os to $5.3M; watch CRE watchlist trends even as NPA declined materially in Q2.
  • Fee-based revenue mix is balanced but uneven QoQ; insurance and wealth management offset card softness—diversification helps stabilize noninterest income.
  • Capital return actions (dividend + new repurchase authorization) provide a supportive backdrop for shares near-term, signaling confidence in capital and earnings power.
  • Funding costs stabilized; average cost of funds held at 1.84%—continued deposit mix improvements are key for further margin gains.
  • Liquidity robust at $1.5B (18% of assets), mitigating funding risk and enabling tactical balance sheet moves.
  • With thin sell-side coverage, beats/misses versus consensus may have outsized price impact; near-term catalysts include continued NIM progression, any color on CRE resolution pace, and buyback execution.*
References:
- Q2 2025 press release and financials: **[1005817_04be202e9667423ea95d099b2c78e737_0]** **[1005817_04be202e9667423ea95d099b2c78e737_1]** **[1005817_04be202e9667423ea95d099b2c78e737_2]** **[1005817_04be202e9667423ea95d099b2c78e737_3]** **[1005817_04be202e9667423ea95d099b2c78e737_4]** **[1005817_04be202e9667423ea95d099b2c78e737_5]** **[1005817_04be202e9667423ea95d099b2c78e737_10]** **[1005817_04be202e9667423ea95d099b2c78e737_11]** **[1005817_04be202e9667423ea95d099b2c78e737_14]** **[1005817_04be202e9667423ea95d099b2c78e737_16]**
- 8-K (Item 2.02), dividend and buyback exhibits: **[1005817_0001005817-25-000016_q22025pressrelease.htm:0]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:1]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:2]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:3]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:4]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:5]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:6]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:7]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:8]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:9]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:10]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:11]** **[1005817_0001005817-25-000016_q22025pressrelease.htm:12]** **[1005817_0001005817-25-000016_q22025stockrepurchasepress.htm:0]** **[1005817_0001005817-25-000016_q3div2025pressrelease.htm:0]** **[1005817_0001005817-25-000016_tmp-20250724.htm:1]** **[1005817_0001005817-25-000016_tmp-20250724.htm:2]** **[1005817_0001005817-25-000016_tmp-20250724.htm:3]**
- Q1 2025 press release: **[1005817_fcaab95be2a04596a275daeaa40992d2_0]** **[1005817_fcaab95be2a04596a275daeaa40992d2_1]** **[1005817_fcaab95be2a04596a275daeaa40992d2_2]** **[1005817_fcaab95be2a04596a275daeaa40992d2_3]** **[1005817_fcaab95be2a04596a275daeaa40992d2_4]** **[1005817_fcaab95be2a04596a275daeaa40992d2_7]** **[1005817_fcaab95be2a04596a275daeaa40992d2_8]** **[1005817_fcaab95be2a04596a275daeaa40992d2_9]** **[1005817_fcaab95be2a04596a275daeaa40992d2_10]** **[1005817_fcaab95be2a04596a275daeaa40992d2_11]** **[1005817_fcaab95be2a04596a275daeaa40992d2_12]** **[1005817_fcaab95be2a04596a275daeaa40992d2_13]** **[1005817_fcaab95be2a04596a275daeaa40992d2_15]**
- Q4 2024 press release: **[1005817_a485314ed7e845d0acec19805e3933fe_0]** **[1005817_a485314ed7e845d0acec19805e3933fe_1]** **[1005817_a485314ed7e845d0acec19805e3933fe_2]** **[1005817_a485314ed7e845d0acec19805e3933fe_3]** **[1005817_a485314ed7e845d0acec19805e3933fe_4]** **[1005817_a485314ed7e845d0acec19805e3933fe_5]** **[1005817_a485314ed7e845d0acec19805e3933fe_8]** **[1005817_a485314ed7e845d0acec19805e3933fe_9]** **[1005817_a485314ed7e845d0acec19805e3933fe_10]** **[1005817_a485314ed7e845d0acec19805e3933fe_11]** **[1005817_a485314ed7e845d0acec19805e3933fe_12]** **[1005817_a485314ed7e845d0acec19805e3933fe_13]** **[1005817_a485314ed7e845d0acec19805e3933fe_14]** **[1005817_a485314ed7e845d0acec19805e3933fe_15]** **[1005817_a485314ed7e845d0acec19805e3933fe_16]** **[1005817_a485314ed7e845d0acec19805e3933fe_17]** **[1005817_a485314ed7e845d0acec19805e3933fe_18]**
- Estimates: Values with * retrieved from S&P Global.