Breaking Down Tompkins Financial Corporation (TMP) Financial Health: Key Insights for Investors

Are you looking for a stable investment in the financial sector? Have you considered Tompkins Financial Corporation (TMP)? With $7.8 billion in assets and a history stretching back to 1836, Tompkins Financial has deep roots in community-based financial services. But how healthy is Tompkins Financial right now, and what does it mean for potential investors like you? Keep reading to explore key financial insights, from recent earnings reports to dividend payouts, and get a clearer picture of whether TMP aligns with your investment strategy.

Tompkins Financial Corporation (TMP) Revenue Analysis

Understanding Tompkins Financial Corporation's revenue streams is crucial for investors seeking to assess the company's financial health and future prospects. A detailed breakdown reveals the key drivers behind its financial performance.

Tompkins Financial Corporation primarily generates revenue through traditional banking activities, wealth management services, and insurance services. Analyzing the contribution of each segment provides insights into the diversification and stability of their income.

Here's a breakdown of what to consider when analyzing Tompkins Financial Corporation's revenue:

• Breakdown of Primary Revenue Sources: Examining the specific products and services that generate the most revenue. This includes interest income from loans, fees from wealth management, and premiums from insurance products.
• Year-over-Year Revenue Growth Rate: Assessing the historical trends in revenue growth, including percentage increases or decreases. This helps to identify periods of strong performance and potential challenges.
• Contribution of Different Business Segments: Understanding how each segment (banking, wealth management, insurance) contributes to the overall revenue. This reveals the company's reliance on specific areas and its ability to generate income from diverse sources.
• Analysis of Significant Changes in Revenue Streams: Identifying any notable shifts in revenue streams, such as new product offerings, changes in customer behavior, or impacts from economic conditions.

While specific year-over-year revenue growth rates and segment contributions require up-to-date financial reports from Tompkins Financial Corporation, investors can typically find this information in the company's quarterly and annual filings with the Securities and Exchange Commission (SEC). These filings provide a detailed look at the financial performance of Tompkins Financial Corporation, allowing for a comprehensive analysis of its revenue streams.

Investors should pay close attention to these details to gain a well-rounded understanding of Tompkins Financial Corporation’s financial position and make informed decisions.

Tompkins Financial Corporation (TMP) Profitability Metrics

Analyzing Tompkins Financial Corporation's profitability involves looking at several key metrics that provide insights into its financial health and operational efficiency. Here's a breakdown based on the available 2024 data:

• Revenue: For the fiscal year ending December 31, 2024, Tompkins Financial Corporation reported total revenue of $435.70 million.
• Cost of Goods Sold: The cost of goods sold was $136.47 million.
• Gross Profit: Resulting in a gross profit of $299.23 million.
• Operating Expenses: Operating expenses totaled $342.73 million.
• Operating Income: The operating income was $92.98 million.
• Net Income: The net income was $70.85 million.

Profit Margins:

• Net Profit Margin: For the fiscal year ending December 31, 2024, the net profit margin was 24.21%.

Quarterly Net Profit Margins in 2024:

• Q1 2024: 23.49%
• Q2 2024: 22.27%
• Q3 2024: 25.09%
• Q4 2024: 26.01%

Net Interest Margin:

• Q1 2024: 2.73%
• Q2 2024: 2.73%
• Q4 2024: 2.93%, improved from 2.79% in the prior quarter.

Earnings Per Share (EPS):

• Diluted earnings per share for the year ended December 31, 2024, were $4.97, up 653.0% compared to the previous year.

Operational Efficiency:

• Cost of Funds: The total average cost of funds for the fourth quarter of 2024 was 1.88%, a decrease of 13 basis points from the previous quarter.
• Noninterest Expenses: Tompkins Financial has remained focused on managing expenses, with noninterest expenses lower year-to-date.

Additional Insights:

• Earnings Growth: Tompkins Financial's earnings have shown significant growth, with a 654.5% year-over-year increase for the trailing 12 months ending December 31, 2024.
• Revenue Growth: The company has demonstrated strong revenue growth, with a 818.79% year-over-year change in Q4 2024.

Comparison with Peers:

When comparing Tompkins Financial Corporation (TMP) to its peers, several performance ratios stand out. As of December 31, 2024, TMP's data shows:

These metrics provide a comprehensive view of Tompkins Financial Corporation's profitability, highlighting its strengths and areas for potential improvement.

To learn more about the investors of Tompkins Financial Corporation, check out this link: Exploring Tompkins Financial Corporation (TMP) Investor Profile: Who’s Buying and Why?

Tompkins Financial Corporation (TMP) Debt vs. Equity Structure

Understanding how Tompkins Financial Corporation (TMP) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses both debt and equity.

As of December 31, 2024, Tompkins Financial Corporation (TMP) reported the following debt figures:

• Long-term debt: $183.2 million
• Short-term debt: $30 million

The debt-to-equity ratio is a key metric to assess a company's financial leverage. For Tompkins Financial Corporation (TMP), the debt-to-equity ratio as of December 31, 2024, was approximately 0.35. This ratio indicates that Tompkins Financial Corporation (TMP) has $0.35 of debt for every $1 of equity. Comparing this to the industry average for regional banks, which typically falls between 0.5 and 1.5, Tompkins Financial Corporation (TMP)'s ratio suggests a relatively conservative approach to leverage.

Here's a comparative overview of Tompkins Financial Corporation (TMP)'s debt-to-equity ratio against industry standards:

Recent activities, such as debt issuances or refinancing, can provide insights into a company's financial strategy. However, specific details on recent debt issuances, credit ratings, or refinancing activities for Tompkins Financial Corporation (TMP) were not available in the provided search results as of April 20, 2025. For the most current details, consulting the company's financial statements or investor relations releases is advisable.

Balancing debt and equity is vital for sustainable growth. Tompkins Financial Corporation (TMP)'s lower debt-to-equity ratio suggests a preference for equity funding, which can provide stability and reduce financial risk. However, debt can also be a cost-effective way to finance growth, depending on interest rates and market conditions. The company's strategy likely involves a mix of both, carefully managed to optimize financial performance and shareholder value. More insights into the company's strategic vision can be found at: Mission Statement, Vision, & Core Values of Tompkins Financial Corporation (TMP).

Tompkins Financial Corporation (TMP) Liquidity and Solvency

When evaluating Tompkins Financial Corporation (TMP), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

Here's an overview of key liquidity indicators for TMP:

• Current Ratio: The current ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: The quick ratio is similar to the current ratio but excludes inventory, providing a more conservative measure of liquidity.

Analyzing working capital trends offers insights into TMP's operational efficiency and short-term financial health. Working capital is the difference between a company's current assets and current liabilities. Monitoring changes in these components can reveal whether TMP is effectively managing its resources.

The cash flow statement provides a comprehensive view of how Tompkins Financial Corporation generates and uses cash. It is divided into three main sections:

• Operating Activities: Cash flow from the company's core business operations.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

Below is a hypothetical overview of TMP's key financial ratios and cash flow data for the fiscal year 2024. Please note that this is for illustrative purposes and not actual data.

Potential liquidity concerns might arise if TMP's current liabilities significantly exceed its current assets, leading to a low current ratio. Monitoring these metrics is essential for assessing TMP's financial stability. Strengths in liquidity positions would include a high current and quick ratio, coupled with positive operating cash flow.

For more detailed insights, you can refer to: Breaking Down Tompkins Financial Corporation (TMP) Financial Health: Key Insights for Investors

Tompkins Financial Corporation (TMP) Valuation Analysis

Assessing whether Tompkins Financial Corporation (TMP) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, detailed real-time data for these specific ratios and analyst opinions for TMP as of late April 2025 are not available. However, examining historical data and trends can provide valuable insights:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or TMP's historical average.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help determine if the stock price reflects the net asset value of the company.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the total value of the company (equity plus debt) to its earnings before interest, taxes, depreciation, and amortization. It's useful for evaluating companies with different capital structures.

To illustrate, let's consider a hypothetical scenario based on previous data (note: this is not current 2024 data):

Stock Price Trends: Analyzing TMP's stock price movement over the past year, or longer, helps to understand market sentiment and identify any significant price fluctuations. For instance, a consistent upward trend might reflect positive investor confidence, while a downward trend could indicate concerns about the company's performance or broader economic factors.

Dividend Yield and Payout Ratios: If TMP pays dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (percentage of earnings paid out as dividends) shows the sustainability of the dividend payments. A high yield with a sustainable payout ratio can be attractive to income-seeking investors.

Analyst Consensus: Tracking analyst ratings (buy, hold, or sell) and price targets provides a view of professional opinions on the stock's potential. A consensus of 'buy' ratings suggests positive expectations, while 'hold' or 'sell' ratings may indicate caution.

For a deeper dive into Tompkins Financial Corporation (TMP), consider reading: Exploring Tompkins Financial Corporation (TMP) Investor Profile: Who’s Buying and Why?

Tompkins Financial Corporation (TMP) Risk Factors

Tompkins Financial Corporation (TMP) faces a variety of internal and external risks that could potentially impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Investors need to be aware of these factors to make informed decisions. For more insights, check out: Breaking Down Tompkins Financial Corporation (TMP) Financial Health: Key Insights for Investors

Here's an overview of some key risk areas:

• Industry Competition: The financial services industry is highly competitive. Tompkins Financial faces competition from other banks, credit unions, and non-bank financial institutions. Increased competition could put pressure on interest rates, reduce loan volume, and impact profitability.
• Regulatory Changes: Banks are subject to extensive regulation. Changes in laws and regulations, such as capital requirements, lending restrictions, or consumer protection laws, could increase compliance costs and limit the company's ability to operate profitably.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the real estate market can all impact Tompkins Financial's performance. For example, rising interest rates could reduce demand for loans, while a decline in real estate values could lead to increased loan losses.

Operational, financial, and strategic risks are often highlighted in the company’s earnings reports and filings. These may include:

• Credit Risk: The risk that borrowers will default on their loans is a significant concern for any bank. Tompkins Financial needs to carefully manage its credit risk to minimize loan losses.
• Interest Rate Risk: Changes in interest rates can affect the company's net interest income, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits.
• Operational Risk: This includes risks related to fraud, cyberattacks, and other disruptions to the company's operations.

While specific mitigation strategies are not always publicly detailed, Tompkins Financial likely employs various measures to manage these risks. Common strategies include:

• Diversification: Diversifying its loan portfolio across different industries and geographic regions can help reduce credit risk.
• Hedging: Using financial instruments to hedge against interest rate risk.
• Compliance Programs: Maintaining robust compliance programs to ensure adherence to all applicable laws and regulations.
• Cybersecurity Measures: Implementing strong cybersecurity measures to protect against cyberattacks.

Understanding these risks is crucial for investors assessing Tompkins Financial Corporation's financial health and future prospects.

Tompkins Financial Corporation (TMP) Growth Opportunities

Tompkins Financial Corporation (TMP) possesses several key drivers that could influence its future growth trajectory. These include strategic initiatives, market conditions, and competitive advantages. A comprehensive analysis of these factors is essential for investors seeking to understand the potential for future revenue and earnings expansion.

Key growth drivers for Tompkins Financial Corporation (TMP) may include:

• Product Innovations: The introduction of new financial products and services tailored to meet the evolving needs of its customer base.
• Market Expansion: Extending its presence into new geographic markets or demographic segments.
• Acquisitions: Strategic acquisitions of other financial institutions or related businesses to broaden its service offerings and market share.

Predicting future revenue growth and earnings requires a detailed understanding of the current economic environment and company-specific initiatives. While precise figures are subject to market volatility and unforeseen circumstances, analysts' estimates and company guidance provide valuable insights. As of the fiscal year 2024, Tompkins Financial Corporation reported a net income available to common shareholders of $88.4 million, or $6.15 per diluted share.

Strategic initiatives and partnerships can significantly impact Tompkins Financial Corporation's (TMP) growth prospects. These may include:

• Technology investments to enhance digital banking capabilities and customer experience.
• Partnerships with fintech companies to offer innovative financial solutions.
• Community development programs to strengthen local relationships and drive business growth.

Tompkins Financial Corporation (TMP) benefits from several competitive advantages that position it for sustained growth:

• Strong local market presence and brand reputation.
• Experienced management team with a proven track record.
• Diversified revenue streams across various financial services segments.

For more detailed information on Tompkins Financial Corporation’s (TMP) financial health, you can refer to: Breaking Down Tompkins Financial Corporation (TMP) Financial Health: Key Insights for Investors