Tompkins Financial Corporation (TMP) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 3.39%
• Average Volume (3M): 60.99K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.74
• Revenue Growth: 9.55%
• EPS Growth: 27.32%
• Country: US
• Employees: 941
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 14,431,880
• 10 Day Avg. Volume: 79,094
• 30 Day Avg. Volume: 60,992
• PEG Ratio: 0.02
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 10.87
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 15.86
• 1Y Price Target: $80.50
• Price Target Upside: -5.49% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $87.00 ▲(2.14% Upside)

The score is driven primarily by solid financial performance (strong cash generation, improving leverage, and healthy profitability) and supportive technicals with price above key moving averages. Valuation adds a meaningful boost due to a reasonable P/E and strong dividend yield, while corporate events are constructive but include some one-time restructuring impacts.

Positive Factors

Robust cash generation

Tompkins converts nearly all reported earnings into free cash flow (FCF-to-net income ~0.98) with positive FCF growth. Durable cash generation supports steady dividends, funds organic growth and balance sheet repair, and reduces dependence on external funding over the medium term.

Improving leverage and capital

A materially lower debt-to-equity (0.67 from 1.11) and healthy ROE (11.24%) indicate stronger capitalization and financial flexibility. Improved leverage and reported Tier 1 capital enhancements support lending capacity and resilience to shocks over the next several quarters.

Strategic capital monetization

The ~$223M cash sale materially increased liquidity and produced a large one-time gain, enabling balance sheet restructuring and targeted reinvestment. This capital redeployment shifts the franchise toward a more capitalized, banking-focused model with capacity for strategic investments and shareholder returns.

Negative Factors

Earnings driven by non-recurring gain

Reported record EPS and net income were largely fueled by a one-time pre-tax gain from the insurance-sale. This obscures underlying operating profitability; absent similar transactions, headline earnings may normalize, complicating forward earnings durability assessments.

Securities repositioning realized losses

Management sold low-yield securities at a sizable realized loss to reinvest at higher yields. While expected to bolster NII over time, the transition incurred material realized losses and timing risk that can depress near-term returns and create execution exposure during reinvestment.

Margin pressure and elevated operating costs

Gross margin has declined from prior years and the company disclosed higher salaries, benefits and professional fees tied to deals and investments. Persistently higher operating costs would erode net margins and ROE unless offset by sustained revenue mix improvements or efficiency gains.

Tompkins Financial Corporation Business Overview & Revenue Model

Company Description

Tompkins Financial Corporation, a financial holding company, provides commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. The company operates in three segments: Banking, Insurance, and Wealth Management. It accepts various deposit products, including checking accounts, savings accounts, time deposits, and IRA products, as well as brokered, reciprocal, and municipal money market deposits. The company also offers loans for various business purposes, including real estate financing, construction, equipment financing, accounts receivable financing, and commercial leasing; residential mortgage loans; personal loans; residential real estate loans; home equity loans; commercial and industrial loans; commercial real estate loans; agriculture loans; and consumer loans, such as personal installment loans, direct and indirect automobile financing, and overdraft lines of credit. In addition, it provides letters of credit and sweep accounts; credit and debit cards; and deposit and cash management, internet-based account, remote deposit, safe deposit, voice response, ATM, and mobile and internet banking services. Further, the company offers investment management, trust and estate, and financial and tax planning services; property and casualty, medical, life, disability, and long-term care insurance services; employee benefit consulting services; and insurance planning services. It primarily serves individuals, corporate executives, small business owners, and high net worth individuals. The company operates through a network of 63 banking offices, including 43 offices in New York and 20 offices in Pennsylvania. Tompkins Financial Corporation was founded in 1836 and is headquartered in Ithaca, New York.

How the Company Makes Money

Tompkins Financial Corporation generates revenue through multiple streams, primarily from interest income earned on loans and investment securities, as well as fees from financial services. The company’s banking operations, which include commercial and consumer lending, contribute significantly to its earnings through interest on loans provided to customers. Additionally, Tompkins derives income from service charges on deposit accounts and fees for wealth management and investment advisory services. Insurance services also play a crucial role in revenue generation, with premiums collected from clients. Strategic partnerships with other financial entities and service providers enhance its offerings and allow for additional revenue opportunities, enabling Tompkins to maintain a diversified income portfolio.

Tompkins Financial Corporation Financial Statement Overview

Summary

Strong overall fundamentals supported by robust cash generation (Cash Flow Score 80; FCF-to-net income 0.98; FCF growth 5.37%) and improving profitability (net margin 19.35%). Balance sheet leverage has improved (debt-to-equity down to 0.67) with healthy ROE (11.24%), though declining gross margin (52.44%, down vs prior years) points to some cost pressure.

Income Statement

Tompkins Financial Corporation shows a stable income statement with consistent revenue growth, evidenced by a 2.24% increase in TTM. The gross profit margin remains strong at 52.44%, although it has decreased from previous years. Net profit margin has improved to 19.35% in TTM, indicating enhanced profitability. However, the decline in gross profit margin suggests potential cost pressures.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.67 in TTM, down from 1.11 in the previous year, indicating improved financial stability. Return on equity is healthy at 11.24%, showing effective use of equity to generate profits. The equity ratio stands at 9.31%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals positive trends with a 5.37% growth in free cash flow in TTM. The free cash flow to net income ratio is strong at 0.98, indicating efficient cash generation relative to net income. Operating cash flow coverage ratio is not available, but overall cash flow health appears robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	462.18M	431.65M	303.36M	324.74M	316.63M	324.94M
Gross Profit	315.97M	288.56M	211.18M	300.90M	301.33M	278.73M
EBITDA	115.36M	92.98M	12.12M	109.71M	114.57M	109.34M
Net Income	84.48M	70.85M	9.51M	85.03M	89.26M	77.59M
Balance Sheet
Total Assets	8.47B	8.11B	7.82B	7.67B	7.82B	7.62B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.37B	1.50B	1.67B	2.11B	2.02B
Total Debt	525.67M	790.25M	653.10M	347.58M	190.79M	344.06M
Total Liabilities	7.68B	7.40B	7.15B	7.05B	7.09B	6.90B
Stockholders Equity	788.80M	713.44M	668.52M	615.98M	727.53M	716.28M
Cash Flow
Free Cash Flow	94.72M	88.76M	82.24M	95.17M	116.44M	96.84M
Operating Cash Flow	99.32M	94.97M	89.00M	103.34M	121.18M	101.39M
Investing Cash Flow	-395.64M	-250.44M	-146.30M	-8.44M	-583.29M	-643.72M
Financing Cash Flow	357.49M	210.33M	59.00M	-80.17M	136.76M	792.81M

Tompkins Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMP, the sentiment is Positive. The current price of 85.18 is above the 20-day moving average (MA) of 78.45, above the 50-day MA of 75.39, and above the 200-day MA of 66.98, indicating a bullish trend. The MACD of 2.77 indicates Negative momentum. The RSI at 73.12 is Negative, neither overbought nor oversold. The STOCH value of 88.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMP.

Tompkins Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTBI	78 Outperform	$1.17B	11.92	12.15%	3.44%	9.93%	17.67%
TMP	77 Outperform	$1.23B	7.58	11.20%	3.39%	9.55%	27.32%
FMBH	75 Outperform	$1.06B	11.52	9.74%	2.43%	3.54%	12.23%
OSBC	72 Outperform	$1.11B	13.03	9.24%	1.24%	10.42%	-18.32%
BHRB	71 Outperform	$1.05B	8.98	13.70%	3.49%	53.68%	290.47%
OCFC	69 Neutral	$1.12B	16.74	4.77%	4.05%	-2.15%	-25.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Tompkins Financial Corporation Corporate Events

Tompkins Financial Reports Record Earnings and Declares Dividend

On January 29, 2026, Tompkins Financial Corporation’s board declared a cash dividend of $0.67 per share, payable on February 22, 2026 to shareholders of record as of February 13, 2026. In results reported on January 30, 2026, the company posted record fourth-quarter 2025 diluted earnings per share of $6.70 (GAAP) and record operating diluted EPS of $1.78, with quarterly net income surging to $96.2 million from $19.7 million a year earlier; for full-year 2025, diluted EPS rose to $11.24 and net income to $161.1 million, more than doubling 2024 levels. The sharp earnings increase was driven largely by the sale of its insurance subsidiary TIA for about $223 million in cash, generating a $188.2 million pre-tax gain, partly offset by a $78.7 million pre-tax loss on the sale of $564.2 million in low-yield securities that were reinvested at significantly higher yields, a balance sheet restructuring that boosted net interest margin and is expected to enhance securities income over time. Operationally, Tompkins reported solid underlying performance with net interest income up 18.3% for 2025, net interest margin improving to 3.42% in the fourth quarter, loans and deposits each growing just over 7% year-on-year, and regulatory Tier 1 capital strengthening to 10.62%, while higher salaries, benefits, and professional fees reflected deal-related costs and investments to support future growth; the combined effect is a leaner, more capitalized banking-focused franchise with improved profitability metrics and continued capacity to return capital via dividends.

The most recent analyst rating on (TMP) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Tompkins Financial Corporation stock, see the TMP Stock Forecast page.

Tompkins Financial Updates Executive Retirement Plans

On December 16, 2025, Tompkins Financial Corporation implemented defined contribution supplemental executive retirement plans (DC SERPs) for two executives, Matthew D. Tomazin and Stephen S. Romaine. These plans include annual contributions to their retirement accounts, with specific vesting schedules and interest rates tied to Prime plus 1%. An amendment to Mr. Romaine’s pre-existing supplemental retirement agreement (DB SERP) also adjusts how earnings calculations incorporate senior incentive payments, ensuring a higher payout benchmark. These enhancements are expected to strengthen executive retention and align leadership incentives with company sustainability goals.

The most recent analyst rating on (TMP) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Tompkins Financial Corporation stock, see the TMP Stock Forecast page.

Tompkins Financial Sells Subsidiary for $223 Million

On November 3, 2025, Tompkins Financial Corporation announced the sale of its subsidiary, Tompkins Insurance Agencies, Inc. (TIA), to Arthur J. Gallagher & Co. for approximately $223 million in cash, resulting in a pre-tax gain of $183 million. This strategic move allows TIA to leverage Gallagher’s global resources while continuing to serve its existing customer base. The transaction is expected to enhance Tompkins’ financial flexibility, enabling it to replace the earnings of the sold subsidiary and support future strategic investments.

The most recent analyst rating on (TMP) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Tompkins Financial Corporation stock, see the TMP Stock Forecast page.