Executive Summary

Q3 2025 showed continued improvement: diluted EPS rose to $1.65 (+10% q/q; +26.9% y/y) and net income reached $23.7M (+10.3% q/q; +27.0% y/y), driven by net interest margin expansion and loan/deposit growth .
Consensus context: EPS missed by $0.05 (actual $1.65 vs $1.70*) and “Revenue” (S&P operating revenue = NII + noninterest income − provision) missed ($84.95M vs $87.00M*) as higher expenses and provision offset stronger NII and fees*.
Balance sheet metrics strengthened: NIM (TE) increased to 3.20% (+12 bps q/q; +41 bps y/y), average cost of funds fell to 1.83% (−1 bp q/q; −18 bps y/y), and deposits grew to $7.05B (+5.0% q/q; +7.2% y/y) .
Capital/liquidity robust: Tier 1 capital/average assets at 9.41% (vs 9.36% in Q2) and “ready access to liquidity” of $1.5B (17.8% of assets) .
Board raised the quarterly dividend to $0.65 (+4.6% vs Q3’s $0.62), signaling confidence and supporting shareholder returns .

What Went Well and What Went Wrong

What Went Well

Net interest margin (TE) rose to 3.20% (+12 bps q/q; +41 bps y/y) on higher asset yields and loan balances, with lower funding costs y/y .
Broad-based growth: period-end loans reached $6.29B (+1.9% q/q; +6.9% y/y) and deposits reached $7.05B (+5.0% q/q; +7.2% y/y), improving L/D ratio to 89.2% (from 91.9% in Q2) .
Management emphasized balance sheet strength and community focus: “Our performance was driven by continued net interest margin expansion along with loan and deposit growth of 7%...” .

What Went Wrong

Operating revenue vs consensus: S&P-defined revenue missed, as provision and higher noninterest expense offset topline improvements*; noninterest expense rose to $53.8M (+8.0% y/y) reflecting investments for growth .
Asset quality mixed: Special Mention and Substandard loans increased to $144.2M (from $96.8M in Q2), driven by two loans totaling $41.2M downgraded to Special Mention .
Continued provisioning: provision for credit losses was $2.5M (vs $2.8M in Q2; $2.2M y/y) and net charge-offs were $1.1M (vs $5.3M in Q2), reflecting lingering CRE credit normalization .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Net Interest Income ($USD Millions)	$53.19	$60.13	$63.88
Noninterest Income ($USD Millions)	$23.39	$22.51	$23.56
Provision for Credit Losses ($USD Millions)	$2.17	$2.78	$2.49
Noninterest Expense ($USD Millions)	$49.88	$51.62	$53.85
Net Income ($USD Millions)	$18.64	$21.47	$23.67
Diluted EPS ($USD)	$1.30	$1.50	$1.65
Net Interest Margin (TE) %	2.79%	3.08%	3.20%

Segment/Line-of-Business Detail (Noninterest Income)

Category ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Insurance commissions & fees	$11.28	$9.61	$11.28
Wealth management fees	$4.93	$4.96	$4.98
Service charges on deposit accounts	$1.87	$1.79	$1.84
Card services income	$2.92	$3.15	$2.89
Other income	$2.30	$3.00	$2.56

Key Performance Indicators (KPIs)

KPI	Q3 2024	Q2 2025	Q3 2025
Loans (period-end, $USD Millions)	$5,881	$6,173	$6,288
Deposits (period-end, $USD Millions)	$6,578	$6,716	$7,053
Loan-to-Deposit Ratio %	89.4%	91.9%	89.2%
Average Yield on Interest-Earning Assets %	4.66%	4.79%	4.90%
Average Cost of Funds %	2.01%	1.84%	1.83%
Average Cost of Deposits %	1.67%	1.64%	1.64%
Tier 1 Capital / Average Assets %	9.19%	9.36%	9.41%
Total Capital / RWA %	13.21%	13.15%	13.27%
Nonperforming Assets / Total Assets %	0.78%	0.63%	0.63%
Allowance for Credit Losses / Loans %	0.94%	0.95%	0.95%
Allowance / Nonperforming Loans %	88.51%	111.55%	113.06%
Special Mention + Substandard ($USD Millions)	$126.0	$96.8	$144.2
Nonperforming Loans & Leases ($USD Millions)	$62.57	$52.49	$52.97

Results vs. Wall Street Consensus (S&P Global)

Metric	Q3 2025 Consensus*	Q3 2025 Actual*
EPS ($)	1.70	1.65
Revenue ($USD Millions, S&P “operating revenue”)	87.00	84.95

Notes: S&P “Revenue” = Net Interest Income + Noninterest Income − Provision for Credit Losses (63.88 + 23.56 − 2.49 ≈ 84.95) . Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular quarterly cash dividend per share ($)	Q4 2025	$0.62	$0.65	Raised
Stock Repurchase Program (shares authorized)	Announced Q2 2025	N/A	Up to 400,000 shares authorized over 24 months	New

No formal quantitative guidance on revenue, margins, OpEx, OI&E, or tax rate was issued in Q3 2025; effective tax rate was 23.9% (disclosure, not guidance) .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in our document set; themes are synthesized from the press releases .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	Q1 TE NIM 2.98% (+5 bps q/q) on lower funding costs ; Q2 TE NIM 3.08% (+10 bps q/q) on higher asset yields and loans	TE NIM 3.20% (+12 bps q/q; +41 bps y/y) on asset yields/loan growth and improved funding mix	Improving
Funding mix & cost of funds	Q1 avg cost of funds 1.84% (−4 bps q/q) ; Q2 1.84% (flat q/q, −12 bps y/y)	1.83% (−1 bp q/q, −18 bps y/y)	Slight improvement
Loan & deposit growth	Q1 loans +$46.7M q/q; deposits +$281.7M q/q ; Q2 loans +$106.0M q/q; deposits in line q/q	Loans +$115.4M q/q; deposits +$337.3M q/q; L/D down to 89.2%	Continued growth; improved L/D
Asset quality	Q1 allowance/loans 1.01%; NPA 0.87% with one CRE added; specific reserve $4.2M on $18.1M CRE	Allowance/loans 0.95%; NPA 0.63%; but Special Mention+Substandard to $144.2M (+$47.4M q/q from downgrades)	Mixed: headline NPA stable/improved, watchlist up
Fee businesses	Q1 insurance +13.1% y/y; wealth +3.7% y/y; other income +$1.9M OREO gain	Noninterest income +0.8% y/y; steady insurance/wealth; card down y/y	Stable to modest
Capital & liquidity	Q1 Tier 1 9.31%; liquidity $1.5B (18.6% assets)	Tier 1 9.41%; liquidity $1.5B (17.8% assets)	Stable/strong

Management Commentary

“Our third quarter financial results highlight the strength of our team and balance sheet. Net income was up 27.0%… Our performance was driven by continued net interest margin expansion along with loan and deposit growth of 7%… We believe we remain well positioned…” — Stephen S. Romaine, President & CEO .

Prepared remarks emphasize:

NIM expansion on asset yields and improved funding mix, with deposit growth supporting funding .
Investment in the business (personnel/operating expenses) to support future growth .
Asset quality normalization with specific CRE actions and confidence in collateral coverage .

Q&A Highlights

No Q3 2025 earnings call transcript found in our sources; management insights above derive from the company’s press releases and 8‑K filing .

Estimates Context

EPS: $1.65 actual vs $1.70 consensus — miss of $0.05*, largely due to higher noninterest expense and provision despite stronger NII *.
Revenue (S&P operating): $84.95M actual vs $87.00M consensus — miss*, as “operating revenue” netted provision from NII + noninterest*.
Coverage depth: Only one estimate recorded for EPS and Revenue in the period*.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Margin momentum remains the core earnings driver: TE NIM stepped up again to 3.20%, aided by asset yields and funding mix; watch for sustainability if rate paths shift .
Balance sheet strength: deposits grew 5% q/q to $7.05B and L/D improved to 89.2%; liquidity remained substantial at $1.5B (17.8% of assets) supporting flexibility .
Asset quality watchlist grew: Special Mention/Substandard rose to $144.2M on two downgrades; while NPA/Assets held at 0.63%, vigilance on CRE remains prudent .
Expense discipline vs growth investments: noninterest expense up 8% y/y; near‑term operating leverage depends on fee/NII growth outpacing opex .
Shareholder returns: dividend raised to $0.65 and buyback authorization in place; signals confidence amid improving profitability .
Near‑term trading: modest negative reaction risk on consensus misses, offset by visible NIM trajectory and deposit growth — focus on next quarter’s provision/expense cadence* *.
Medium‑term thesis: continued NIM recovery, fee stability, and disciplined credit management could support EPS growth; monitor CRE credits and watchlist migration for downside scenarios .

S&P Global Disclaimer: All values marked with an asterisk (*) are retrieved from S&P Global consensus data via GetEstimates.

TOMPKINS FINANCIAL CORP (TMP)·Q3 2025 Earnings Summary