Updated April 2025
Tompkins Financial Corporation doesn’t grab a lot of headlines—and that’s actually part of what makes it worth talking about. Headquartered in Ithaca, New York, this 185-year-old financial institution is about as old-school as it gets. It delivers community banking and financial services with a slow-and-steady approach that’s kept it around for nearly two centuries. For dividend-focused investors, that kind of track record and consistency can be gold.
This isn’t a fast-growing tech stock or a high-beta momentum play. It’s a firm with deep roots, local relationships, and a habit of rewarding long-term shareholders. With the stock recently trading around $63 and recovering nicely from a low of $43.09, TMP looks like it’s found its footing after a rough patch. Add in a dividend yield close to 4%, and you’ve got something worth a closer look if income is what you’re after.
Recent Events
Over the last twelve months, TMP has shown quiet strength. The stock is up over 30% from its lows, easily outpacing the S&P 500 during the same timeframe. That kind of move doesn’t happen by accident, especially for a regional bank. A closer look shows it’s backed by real improvements—earnings in the most recent quarter were up 31% year over year, while revenue ticked up 9%.
Those numbers suggest a meaningful recovery in the bank’s core business. It’s not just a bounce—it’s a business getting back to better margins. With a profit margin of 24.21% and operating margin of 34.11%, TMP is running efficiently. Return on equity sits at 10.26%, which isn’t eye-popping but is solid for a company in this space.
One of the underappreciated aspects of TMP’s story is how calm it tends to be. With a five-year beta of just 0.71, it doesn’t swing wildly with the market. That stability is comforting for anyone building an income portfolio and trying to avoid drama.
Key Dividend Metrics
💵 Forward Annual Dividend Yield: 3.96%
📈 5-Year Average Yield: 3.41%
📅 Latest Dividend Date: February 21, 2025
🔻 Payout Ratio: 49.09%
📊 Trailing 12-Month Dividend: $2.44 per share
📌 Dividend Growth (Trailing Annual vs. Forward): 1.6%
💰 Ex-Dividend Date: February 14, 2025
Dividend Overview
Tompkins has long been viewed as a steady hand when it comes to returning cash to shareholders. Right now, the forward yield sits just under 4%, which is generous in today’s market. More importantly, it looks sustainable. The company is paying out about 49% of its earnings, leaving plenty of cushion to maintain or slowly grow the dividend from here.
This isn’t a company that suddenly doubles its dividend or surprises the market with a flashy announcement. Instead, it tends to raise payouts at a measured pace, reflecting its cautious and conservative management approach. Over time, that kind of consistency can be just as rewarding, particularly when it’s backed by a business model built to last.
If you’re tracking payout schedules, TMP’s latest dividend was paid in February. The company has a long track record of consistent quarterly dividends. While it doesn’t have a flashy dividend growth profile, it’s reliable—and sometimes that’s exactly what a portfolio needs.
Dividend Growth and Safety
What stands out about TMP’s dividend is how it fits into the company’s overall financial picture. With earnings per share over the past year at $4.97 and a payout of $2.44, there’s a healthy earnings buffer. That kind of coverage suggests the dividend is on solid ground—even if earnings were to cool off temporarily.
The company also has strong liquidity, with $9.50 in cash per share and nearly $95 million in annual operating cash flow. Even though we don’t have a precise free cash flow figure, there’s no sign TMP is stretching itself to fund its dividend. It’s managing the payout comfortably, without reaching for debt or compromising its balance sheet.
Debt stands at around $858 million, which is meaningful, but manageable. It’s not uncommon for banks to operate with higher leverage, and TMP has the earnings power to service it. With cash in the bank and a business that generates steady income, the dividend looks well-supported.
For those seeking a dependable income stream from a lower-volatility stock, Tompkins offers exactly that. The yield may not turn heads at first glance, but the stability behind it makes it attractive. It’s not just about what’s being paid out—it’s about how comfortably it’s being maintained. And in that regard, TMP checks the right boxes.
Balance Sheet Analysis
Tompkins Financial’s balance sheet over the past few years tells a story of slow but steady growth, with a few notable shifts along the way. Total assets crept up to just over $8.1 billion at the end of 2024, a modest climb from $7.82 billion the year before. On the flip side, liabilities have risen in kind—sitting at $7.4 billion, up from $7.15 billion. That means equity has inched forward too, moving from $669.9 million to $713.4 million, signaling some retained strength despite the typical pressures banks face in a rising rate environment.
What really jumps out is the sharp increase in total debt—from $602 million in 2023 to $790 million in 2024. That’s more than a little bump, though still within the bounds of what TMP can handle. Net debt, now at $655.8 million, suggests they’re putting capital to work—maybe not to buy yachts, but possibly to support lending and other income-generating activities. Tangible book value also grew by about $45 million year-over-year, which tells us the underlying value isn’t being hollowed out by leverage or short-term gimmicks. Sure, it’s not flashy, but this is a balance sheet with its boots on the ground—not one swinging for the fences. And for a conservative bank stock, that’s right where it should be.
Cash Flow Statement
Tompkins Financial’s trailing twelve-month (TTM) cash flow paints a picture of a company that’s generating solid operating cash and strategically allocating capital, though not without some heavy lifting on the financing side. Operating cash flow held steady at just under $95 million, virtually unchanged from the prior year. That consistency is a plus, showing that TMP’s core business is dependable even when broader market conditions shift.
On the investing front, cash outflows ballooned to $250 million, up sharply from around $146 million the year before. That’s a notable jump, likely tied to securities or loan portfolio expansion. Meanwhile, financing cash flow surged to over $210 million, largely thanks to an impressive $805 million in new debt issuance, offset by $617 million in repayments. It’s a bit like watching someone refinance a mortgage—busy, but with a purpose. The result? A much stronger cash position, ending the year with $134 million in the bank, a meaningful bump from $80 million the year prior. Free cash flow stayed healthy at nearly $89 million, giving the company plenty of cushion to support its dividend and navigate whatever 2025 brings.
Chart Analysis
Price Action and Trend Behavior
The chart for Tompkins Financial over the past year tells a fairly steady story with a few sharp turns. After a sluggish start in the $43–$46 range during the spring and early summer, the stock gathered steam around July and pushed into a stronger uptrend. That rally, which accelerated sharply in late August, sent the stock above $70 by December—clearly the high point of the year. Since then, it’s pulled back, but without any panic selling or major breakdown.
What’s especially worth noting here is the behavior of the moving averages. The 50-day MA rose steeply through the fall but has started to curl downward more recently. Meanwhile, the 200-day MA has continued climbing, though at a more deliberate pace. The narrowing distance between the two lines could signal a pivotal moment ahead, especially if the price keeps hovering around current levels. So far, the price is holding above the 200-day moving average, which tends to be a good sign of longer-term strength holding up beneath the surface.
Volume and Momentum
Volume during the breakout phase in the fall was noticeably higher—there were several days where volume easily doubled the norm, which points to institutional interest during the run-up. Since then, volume has faded back to average, with no alarming spikes during the recent pullback, suggesting the selling hasn’t been panic-driven. A relatively calm volume pattern during a pullback can often hint that profit-taking is under control.
The RSI adds a little extra context here. Oversold territory was touched a few times in March, but there’s been a steady climb since, and the indicator now sits comfortably in neutral territory. It’s not signaling euphoria or fear, which matches the chart’s price behavior—steady, digestible movement without extremes. That kind of setup, especially when price stays above long-term moving averages, has the look of a stock in consolidation rather than breakdown.
Analyst Ratings
📈 As of early October 2024, Keefe, Bruyette & Woods shifted their stance on Tompkins Financial from a “Hold” to a “Buy” rating, nudging the price target up from $59 to $68. This move came on the heels of stronger-than-expected quarterly earnings and an improved margin outlook, thanks in part to a more favorable interest rate environment. The upgrade reflected increased confidence in the company’s ability to manage through a shifting rate cycle while maintaining solid profitability.
🔄 That same week, Piper Sandler took a more cautious tone. They held their “Neutral” rating in place but did raise their price target slightly from $50 to $52. While acknowledging the positive earnings surprise, the firm seemed to prefer a wait-and-see approach, noting that although operational performance is improving, the valuation might already be pricing in much of the good news.
🎯 As of March 2025, the average analyst price target sits at $78.03. The lowest estimate is around $70.70, while the highest reaches up to $87.15. These targets suggest a consensus view that the stock has room to run, even after its solid rebound over the past year. The range reflects a balance of optimism about margin improvement and caution over potential macro headwinds.
Earning Report Summary
Strong Finish to the Year
Tompkins Financial wrapped up 2024 on a strong note, putting up numbers that show real momentum. In the fourth quarter, the company reported diluted earnings per share of $1.37—up 5% from the previous quarter and over 30% higher than the same time last year. That brought in $19.7 million in net income for the quarter alone, which is a solid 31% increase from Q4 of the prior year.
For the full year, earnings per share came in at $4.97. That’s a massive jump from 2023, thanks in part to the fact that last year’s results were weighed down by a significant loss tied to the sale of securities. This time around, there were no such headwinds—just better execution across the board. Net income for the year hit $70.9 million, which is nearly nine times higher than what they posted the year before.
Margins and Loan Growth Moving in the Right Direction
A big part of this stronger showing came from improvements in the company’s net interest margin. It climbed to 2.93% in the fourth quarter, up from 2.79% the quarter before. That might sound like a small change, but in the world of banking, it makes a difference. A better funding mix and some easing in interest rates helped boost that margin.
Noninterest income also got a lift, especially in areas like wealth management and insurance. Those fee-based services brought in 7.7% more revenue than they did in the same quarter last year. And while expenses didn’t spike, they actually came down a bit compared to Q4 2023—always a welcome surprise.
On the lending side, total loans rose by nearly $139 million from the prior quarter and by more than $400 million compared to the year before. Deposits slipped slightly in the last quarter but are still up year over year. The loan-to-deposit ratio moved to 93%, showing that the bank is putting more of its deposits to work, which is generally a good thing for profitability.
A Confident Outlook
Leadership at Tompkins seems pleased with how 2024 ended. They pointed to stronger customer relationships, healthy loan demand, and continued growth in fee-driven areas of the business. With profitability metrics improving and the balance sheet looking solid, they’re setting the stage for more steady progress ahead.
Management Team
At the helm of Tompkins Financial Corporation is a leadership team that blends experience with a deep understanding of community banking. Stephen S. Romaine serves as President and Chief Executive Officer, a role he’s held since 2007. His journey with Tompkins began earlier, having led Tompkins Mahopac Bank as President and CEO from 2003 to 2006. Under his guidance, the company has navigated various economic climates, emphasizing steady growth and community engagement.
Supporting Romaine is a cadre of seasoned executives. David S. Boyce holds the position of Executive Vice President, bringing a wealth of experience to the team. Alyssa Fontaine serves as Executive Vice President, General Counsel, and Chief Risk Officer, ensuring the company’s operations adhere to legal standards while managing potential risks. Matthew Tomazin, as Executive Vice President, Chief Financial Officer, and Treasurer, oversees the financial health and strategic fiscal planning of the corporation.
The broader leadership team includes individuals like Johanna Anderson, David DeMilia, and Ginger Kunkel, each contributing their expertise to various facets of the company’s operations. This collective leadership emphasizes a commitment to community values, customer relationships, and sustainable financial practices.
Valuation and Stock Performance
Tompkins Financial Corporation’s stock, trading under the ticker TMP, has exhibited resilience amidst the ebbs and flows of the financial markets. Over the past year, the stock has seen a 52-week range between $43.09 and $79.01, reflecting the broader market’s volatility and the company’s adaptive strategies.
As of April 2, 2025, TMP’s stock price stood at $63.46, marking a modest uptick from the previous close. This positions the stock closer to its mid-range over the past year, suggesting a stabilization after periods of fluctuation. With a market capitalization hovering around $909 million and a price-to-earnings (P/E) ratio of 12.65, the stock presents a valuation that aligns with industry norms, indicating balanced investor expectations regarding future earnings growth.
The company’s dividend yield stands at approximately 3.95 percent, offering investors a steady income stream. This yield, combined with the company’s consistent dividend history, underscores its commitment to returning value to shareholders.
Risks and Considerations
Investing in financial institutions like Tompkins Financial Corporation comes with its set of considerations. The company’s performance is inherently tied to economic conditions, with factors such as interest rate fluctuations, credit risk, and regulatory changes playing pivotal roles. A shift in interest rates can influence net interest margins, impacting profitability. Additionally, the company’s loan portfolio is subject to credit risks; any deterioration in credit quality can lead to increased provisions for loan losses.
Operational risks, including cybersecurity threats, are ever-present in today’s digital banking landscape. Ensuring robust security measures and staying ahead of potential breaches is crucial for maintaining customer trust and operational integrity.
Furthermore, as a regional bank with a focus on community banking, Tompkins may face challenges related to geographic concentration. Economic downturns in the regions it serves could disproportionately affect its performance compared to more geographically diversified institutions.
Final Thoughts
Tompkins Financial Corporation stands as a testament to the enduring value of community banking. With a leadership team deeply rooted in its operational philosophy, the company has managed to navigate the complexities of the financial sector while staying true to its core values. Its stock performance reflects a balance of resilience and adaptability, offering investors both stability and growth potential. However, as with any investment, it’s essential to weigh the inherent risks, especially those tied to economic fluctuations and operational challenges. For those seeking an investment that combines a commitment to community values with consistent financial performance, Tompkins Financial Corporation presents a compelling consideration.