Tompkins Financial (TMP) risk factors, FY2025 10-K

Tompkins Financial's FY2025 10-K, filed Feb 26, 2026, lists 26 risk factors in 4 groups. Against the prior year's 27: 3 new, 4 dropped, 6 substantially reworded.

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Risk factors listed
264 groups
New this year
3vs 27 last year
Dropped
4since the prior 10-K
Substantially reworded
6of those kept
Section length
7k wordsItem 1A

What the changes say

  • Banking-industry instability now emphasizes rapid deposit outflows, social-media rumors, market volatility, and potentially higher regulation or FDIC assessments.
  • Tompkins identifies systemic weakness at the Federal Home Loan Bank system as a possible source of more expensive liquidity.
  • Assets reached $8.7 billion, and the company has begun spending on technology and personnel before potentially crossing the $10 billion threshold.
  • Competition from digital wallets, cryptocurrency, and digital transactions is newly included in product-development risks.

What changed since the prior 10-K

New

  • NewMarket Risk

    Adverse developments affecting the banking industry have in the past negatively impacted, and may in the future negatively impact, the Company's results of operations and/or stock price

    Bank failures, rapid deposit movements, and social-media rumors could trigger liquidity concerns, market disruption, and volatility in Tompkins’s common stock.

  • NewMarket Risk

    industry. Such events have, and could again in the future, adversely impact the market price and volatility of the Company's common stock

    Further banking-industry failures could bring higher capital requirements, FDIC assessments, or supervisory and enforcement costs.

  • NewMarket Risk

    stock could be affected by the financial condition of one or more of the other Federal Home Loan Banks. Any such adverse effects on the FHLBNY could adversely affect our liquidity and the value of our investment in FHLBNY common stock, and could negatively impact our results of operations

    Weakness in the Federal Home Loan Bank system could raise borrowing costs, reduce FHLB stock value, and force reliance on more expensive liquidity sources.

Dropped

  • DroppedMarket Risk

    For information about how the Company manages its interest rate risk, refer to Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk" of this Report

  • DroppedMarket Risk

    Adverse developments affecting the banking industry, and resulting media coverage, have contributed to market volatility and regulatory scrutiny in the banking system and have negatively impacted the Company's results of operations and/or stock price, and such adverse effects on the Company could recur or continue

  • DroppedOperational Risks

    information or other personal or business information. The Company's attempts to mitigate these threats may not be successful as cybercrimes are complex and continue to evolve

  • DroppedOperational Risks

    The Company's insurance agency subsidiary’s commission revenues are based on premiums set by insurers and any decreases in these premium rates could adversely affect its operations and revenues

    A cross-reference to the company’s interest-rate risk management disclosures.

Reworded

  • 80% rewrittenLegal, Compliance and Regulatory Risks

    We will be subject to heightened regulatory requirements and compliance costs as we approach $10 billion in total consolidated assets

    Assets increased from $8.1 billion to $8.7 billion; Tompkins has begun technology and personnel investments, with compliance costs potentially materially harming results.

    Was: We will be subject to heightened regulatory requirements if we exceed $10 billion in total consolidated assets

  • 69% rewrittenOperational Risks

    The Company's business requires the collection and retention of large volumes of sensitive data, which is subject to extensive regulation and oversight and exposes our business to additional risks

    The risk now explicitly says cybercrimes continue evolving and mitigation efforts may fail, while retaining exposure from collecting sensitive data.

  • 43% rewrittenOperational Risks

    Climate change could have a material negative impact on the Company and its clients

    No substantive change; the risk still covers physical, credit, transition, and reputational effects of climate change.

    Was: Climate change could have a material negative impact on the Company and clients

  • 33% rewrittenStrategic Risk

    Our success depends on our ability to offer our customers an evolving suite of products and services, and we may not be able to effectively manage the risks inherent in the development of financial products and services

    The company newly names competition from digital wallets, cryptocurrency, and digital transactions and adds compliance risk alongside fraud.

  • 31% rewrittenMarket Risk

    The Company’s liquidity may be adversely affected by the soundness of other financial institutions

    No substantive change; Tompkins still identifies FHLBNY as its key liquidity counterparty and requires collateral and FHLB stock.

  • 21% rewrittenStrategic Risk

    The implementation and use of new and evolving Artificial Intelligence ("AI") technologies present uncertainties and challenges

    No substantive change; the risk still covers AI accuracy, bias, technical limitations, and immature regulation.

All 26 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The Company is subject to increased business risk because the Company has a significant concentration of commercial real estate and commercial business loans, repayment of which is often dependent on the cash flows of the borrower
  2. 02The Company’s agricultural loans are often dependent upon the health of the agricultural industry in the location of the borrower, and the ability of the borrower to repay may be affected by many factors outside of the borrower’s control
  3. 03The Company could be subject to environmental risks and associated costs on real estate properties that are owned by the Company, collateralize the Company’s loans or to which the Company obtains title

Market Risk

  1. 04Adverse developments affecting the banking industry have in the past negatively impacted, and may in the future negatively impact, the Company's results of operations and/or stock priceNew
  2. 05industry. Such events have, and could again in the future, adversely impact the market price and volatility of the Company's common stockNew
  3. 06Declines in asset values may result in impairment charges and may adversely affect the value of the Company’s results of operations, financial condition and cash flows
  4. 07The Company’s business may be adversely affected by general economic conditions in local and national markets, the possibility of the economy’s return to recessionary conditions, and the possibility of further turmoil or volatility in the financial markets
  5. 08The Company's business is concentrated in and largely dependent upon the continued growth and welfare of the general geographic markets in which we operate
  6. 09The Company's funding sources may prove insufficient to replace deposits and support future growth
  7. 10The Company’s liquidity may be adversely affected by the soundness of other financial institutions31% rewritten
  8. 11stock could be affected by the financial condition of one or more of the other Federal Home Loan Banks. Any such adverse effects on the FHLBNY could adversely affect our liquidity and the value of our investment in FHLBNY common stock, and could negatively impact our results of operationsNew
  9. 12An impairment to our goodwill and other intangible assets could adversely affect our financial condition and results of operations
  10. 13The Company relies on cash dividends from its subsidiaries to fund its operations, and payment of those dividends could be discontinued at any time

Operational Risks

  1. 14The Company has been, and may continue to be, adversely affected by fraud
  2. 15A breach of information or other technological security, including as a result of cyber-attacks, could have a material adverse effect on our business, financial condition and results of operations
  3. 16The pervasive and ongoing risk of cybersecurity threats and incidents could have a material adverse effect on our business, financial condition and results of operations
  4. 17The Company's business requires the collection and retention of large volumes of sensitive data, which is subject to extensive regulation and oversight and exposes our business to additional risks69% rewritten
  5. 18The Company's operations may be adversely affected if its external vendors do not perform as expected or if its access to third-party services is interrupted
  6. 19Climate change could have a material negative impact on the Company and its clients43% rewritten

Legal, Compliance and Regulatory Risks

  1. 20The Company operates in a highly regulated environment and may be adversely impacted by current or future laws and regulations due to increased compliance costs, potential fines for noncompliance, and restrictions on our ability to offer products or services or buy or sell businesses
  2. 21The Company may be exposed to regulatory sanctions or liability if we do not timely detect and report money laundering or other illegal activities
  3. 22We will be subject to heightened regulatory requirements and compliance costs as we approach $10 billion in total consolidated assets80% rewritten
  4. 23The Company is or may become involved in lawsuits, legal proceedings, information-gathering requests, and investigations by governmental agencies or other parties that may lead to adverse consequences

Strategic Risk

  1. 24The Company is subject to risks presented by acquisitions, which, if realized, could negatively affect our results of operations and financial condition
  2. 25Our success depends on our ability to offer our customers an evolving suite of products and services, and we may not be able to effectively manage the risks inherent in the development of financial products and services33% rewritten
  3. 26The implementation and use of new and evolving Artificial Intelligence ("AI") technologies present uncertainties and challenges21% rewritten

Other Tompkins Financial 10-Ks

  • FY2024 10-K risk factors
    27 risks

    Tompkins Financial faces concentrated exposure in commercial real estate and $327.6 million in agricultural loans.

    Filed Feb 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.