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TOMPKINS FINANCIAL CORP (TMP)·Q4 2024 Earnings Summary

Executive Summary

  • Diluted EPS was $1.37 for Q4 2024, up 5.4% sequentially and 30.5% year over year; net income was $19.7M (+5.5% q/q, +31.0% y/y) .
  • Net interest margin expanded to 2.93% (+14 bps q/q, +11 bps y/y) as funding costs eased and average loans grew; net interest income rose to $56.3M (+5.8% q/q, +7.5% y/y) .
  • Fee-based revenues increased 7.7% y/y in Q4 led by insurance and wealth management; total noninterest income was $20.8M (+10.5% y/y) .
  • Asset quality improved: nonperforming loans/leases fell to $50.9M (from $62.6M in Q3), allowance coverage increased to 111.06%; one CRE loan moved to OREO ($14.2M) .
  • No Q4 2024 EPS/Revenue consensus comparisons included due to S&P Global data unavailability at time of analysis; dividend maintained at $0.62/share (payable Feb 21, 2025) .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded 14 bps q/q to 2.93% on lower funding costs and average deposit growth; net interest income rose to $56.3M (+5.8% q/q) .
  • Broad-based revenue support: average loans +$100.9M q/q (+8.1% y/y) with strength in CRE and C&I; fee-based revenues up $1.3M (+7.7% y/y) .
  • Management tone confident: “We are pleased to report increased earnings…revenue growth was broad…we remain well positioned to continue to drive growth through quality customer relationships.” — Stephen S. Romaine, President & CEO .

What Went Wrong

  • Period-end deposits declined $106.1M q/q to $6.47B (though +$72.0M y/y); loan-to-deposit ratio rose to 93.0% (from 89.4% in Q3), increasing funding intensity .
  • Noninterest-bearing deposit mix slipped (28.0% of average deposits vs. 28.9% in Q3 and 29.6% y/y), and average cost of interest-bearing liabilities rose y/y to 2.53% .
  • Effective tax rate increased to 23.5% in Q4 and 23.7% for 2024 as average assets exceeded NYS REIT benefit threshold; the bank approved dissolution of REITs in Q4 .

Financial Results

Income and EPS (Quarterly)

MetricQ4 2023Q3 2024Q4 2024
Total Interest & Dividend Income ($M)$80.785 $89.129 $90.022
Net Interest Income ($M)$52.359 $53.193 $56.281
Total Noninterest Income ($M)$18.850 $23.385 $20.829
Provision for Credit Losses ($M)$1.761 $2.174 $1.411
Net Income ($M)$15.003 $18.638 $19.658
Diluted EPS ($)$1.05 $1.30 $1.37

Margins and Funding

MetricQ4 2023Q3 2024Q4 2024
Net Interest Margin (TE, %)2.82% 2.79% 2.93%
Avg Yield on Interest-Earning Assets (%)4.34% 4.66% 4.67%
Avg Cost of Deposits (%)1.43% 1.67% 1.67%
Avg Cost of Funds (%)1.62% 2.01% 1.88%

Noninterest Income Breakdown (Quarterly)

Category ($M)Q4 2023Q3 2024Q4 2024
Insurance Commissions & Fees$7.773 $11.283 $8.471
Wealth Management Fees$4.422 $4.925 $4.878
Service Charges on Deposits$1.773 $1.872 $1.854
Card Services Income$2.859 $2.921 $2.919
Other Income$1.977 $2.299 $2.740

Balance Sheet & KPIs (Period-End)

MetricDec 31, 2023Sep 30, 2024Dec 31, 2024
Total Loans ($M)$5,605.935 $5,881.261 $6,019.922
Total Deposits ($M)$6,399.847 $6,577.896 $6,471.805
Loan-to-Deposit Ratio (%)87.6% 89.4% 93.0%
Tier 1 Capital / Avg Assets (%)9.08% 9.19% 9.27%
Total Capital / RWA (%)13.36% 13.21% 13.07%
Nonperforming Loans & Leases ($M)$62.266 $62.574 $50.871
Nonperforming Assets / Total Assets (%)0.80% 0.78% 0.80%
Allowance / NPLs (%)82.84% 88.51% 111.06%
Provision for Credit Losses ($M)$1.761 $2.174 $1.411
Net Charge-offs ($M)$0.410 $0.912 $0.857

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per Share ($)Q1 2025 payout (declared Jan 31, 2025)$0.62 (Q4 2024 declared Oct 25, 2024) $0.62 (payable Feb 21, 2025) Maintained

No formal revenue/margin/OpEx/tax rate guidance ranges were issued in Q4 materials; management noted tax-rate implications from REIT dissolution and loss of NYS REIT benefits due to average assets >$8B .

Earnings Call Themes & Trends

(Note: No Q4 2024 earnings call transcript found in our document catalog; themes summarized from Q2–Q4 press releases.)

TopicPrevious Mentions (Q2 and Q3)Current Period (Q4 2024)Trend
Net Interest MarginQ2: 2.73% (unchanged q/q) ; Q3: 2.79% (+6 bps q/q) 2.93% (+14 bps q/q; +11 bps y/y) Improving
Deposit Costs & FundingQ2 IB deposit cost 2.27% ; Q3 2.35% ; Avg cost of funds 2.64% (Q2)→2.71% (Q3) IB deposit cost 2.31%; avg cost of funds down to 1.88% Easing
Loan GrowthQ2 loans +$121.3M q/q ; Q3 loans +$119.4M q/q Loans +$138.7M q/q; +$414.0M y/y Strong
Fee-based RevenueQ2: +$0.9M y/y (insurance, WM, service charges, card) ; Q3: +$0.65M y/y Q4: +$1.3M y/y (insurance +9.0%, WM +10.3%) Growing
Asset QualityQ3 NPLs up to $62.6M due to CRE relationship (~$33.3M) NPLs down to $50.9M; CRE loan moved to OREO ($14.2M) Normalizing
Regulatory/Tax—Average assets exceeded $8B; lost NYS REIT tax benefits; REIT dissolution approved Structural change
Technology Initiatives—ATM as a Service (NCR Atleos) to modernize ATM fleet and reduce complexity Modernization

Management Commentary

  • “Our improved results were driven by growth in revenue and lower operating expense. Revenue growth was broad and supported by strong loan growth, deposit growth, and growth in our fee-based businesses…14 basis points of net interest margin expansion and improving profitability metrics.” — Stephen S. Romaine, President & CEO .
  • Emphasis on relationship banking and operating discipline: fee-based businesses (insurance, wealth management) and service charges contributed to noninterest income growth in Q4 .
  • Liquidity and capital remained strong with $1.3B of available liquidity (16.4% of assets) and Tier 1 leverage at 9.27% .

Q&A Highlights

  • No Q4 2024 earnings call transcript published in our document catalog; Q&A highlights unavailable. Management insights above are drawn from the earnings press release .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of analysis due to data access limits; comparison to estimates is therefore not provided.

Key Takeaways for Investors

  • Sequential earnings momentum with diluted EPS at $1.37 and NIM at 2.93% on easing funding costs; continued loan growth in CRE/C&I supports net interest income trajectory .
  • Fee-based revenue (insurance +9.0% y/y; wealth +10.3% y/y) diversified topline amid rate pressures, reducing reliance on spread income .
  • Asset quality risk moderated: NPLs declined to $50.9M with allowance coverage rising to 111.06%; one CRE exposure moved to OREO, improving loss coverage optics .
  • Deposit mix remains a watch item (noninterest-bearing share down to 28.0%), and period-end deposits fell $106.1M q/q; sustained progress on funding costs will be key to margin durability .
  • Capital and liquidity buffers are solid (Tier 1 leverage 9.27%; total capital/RWA 13.07%; $1.3B liquidity), providing flexibility against macro volatility .
  • Structural tax change (REIT dissolution; loss of NYS REIT benefits) lifted effective tax rate; monitor 2025 run-rate tax expense dynamics .
  • Near-term trading implications: momentum in NIM and loan growth, plus improving asset quality, are supportive; watch deposit trends and funding mix for margin sustainability. Medium-term thesis: diversified fee income, disciplined OpEx, and resilient capital position underpin earnings normalization as rate cycle evolves .