
	Year ended December 31,
(In thousands)	2024		2023
Commercial and industrial
Agriculture	$	110,007	$	101,211
Commercial and industrial other1	855,568		722,294
Subtotal commercial and industrial	965,575		823,505
Commercial real estate
Construction	385,931		303,406
Agriculture	217,582		221,670
Commercial real estate other	2,776,304		2,587,591
Subtotal commercial real estate	3,379,817		3,112,667
Residential real estate
Home equity	204,194		188,316
Mortgages	1,366,646		1,373,275
Subtotal residential real estate	1,570,840		1,561,591
Consumer and other
Indirect	229		841
Consumer and other	96,163		96,942
Subtotal consumer and other	96,392		97,783
Leases	12,484		15,383
Total loans and leases	$	6,025,108	$	5,610,929
Less: unearned income and deferred costs and fees	(5,186)		(4,994)
Total loans and leases, net of unearned income and deferred costs and fees	$	6,019,922	$	5,605,935

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. There were no significant changes to the Company’s existing lending policies, underwriting standards or loan review procedures during 2024. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan originations, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans.

The Company’s policy is to underwrite residential real estate loans in accordance with secondary market guidelines in effect at the time of origination, including loan-to-value ("LTV") and documentation requirements. LTVs exceeding 80% for fixed rate loans and 80% for adjustable rate loans require private mortgage insurance to reduce the exposure. The Company verifies applicants’ income, obtains credit reports and independent real estate appraisals in the underwriting process to ensure adequate collateral coverage and that loans are extended to individuals with good credit and income sufficient to repay the loan. In limited circumstances, the Company will make exceptions to secondary market underwriting standards to support community reinvestment activities.

The Company originates fixed rate and adjustable rate residential mortgage loans, including loans that have characteristics of both, such as a 7/6 adjustable rate mortgage, which has a fixed rate for the first seven years and then adjusts semi-annually thereafter. The majority of residential mortgage loans originated over the last several years have been fixed rate loans. Adjustable rate loans have increased in popularity due to the rising interest rate environment. Adjustable rate residential real estate loans are underwritten based upon the initial rate when the fixed rate period is 5 years or longer. For loans with an initial fixed rate of less than 5 years, the fully indexed rate is utilized for the ability to repay qualifying and underwriting. This underwriting practice matches secondary market guidelines.

The Company may sell residential real estate loans in the secondary market based on interest rate considerations. These residential real estate loans are generally sold to FHLMC or SONYMA without recourse in accordance with standard secondary market loan sale agreements. These residential real estate loan sales are subject to customary representations and warranties, including representations and warranties related to gross incompetence and fraud. The Company has not had to repurchase any loans as a result of these general representations and warranties.

During 2024, 2023, and 2022, the Company sold residential mortgage loans totaling $40.1 million, $4.5 million, and $8.9 million, respectively, and realized net gains on these sales of $1.0 million, $96,000, and $155,000, respectively. These residential real estate loans are generally sold without recourse in accordance with standard secondary market loan sale agreements. When residential mortgage loans are sold to FHLMC or SONYMA, the Company typically retains all servicing rights, which provides the Company with a source of fee income. In connection with the sales in 2024, 2023, and 2022, the Company recorded mortgage-servicing assets of $299,000, $34,000, and $66,000, respectively. The loans sold to FHLMC and SONYMA were originated with the intent to sell.

Amortization of mortgage servicing assets amounted to $91,000 in 2024, $81,000 in 2023, and $128,000 in 2022. At December 31, 2024 and 2023, the Company serviced residential mortgage loans aggregating $158.0 million and $130.4 million. Mortgage servicing rights, at an amortized cost basis, totaled $1.1 million at December 31, 2024 and $927,000 at December 31, 2023. These mortgage servicing rights were evaluated for impairment at year-end 2024 and 2023 and no impairment was recognized. Loans held for sale, which are included in residential real estate, totaled $1.7 million and $602,000 at December 31, 2024 and 2023, respectively.

As members of the FHLB, the Company’s subsidiary bank may use unencumbered mortgage related assets to secure borrowings from the FHLB. At December 31, 2024 and 2023, the Company had $543.2 million and $125.0 million, respectively, of term advances from the FHLB that were secured by residential mortgage loans. In addition to the term advances presented above, standby letters of credit with the FHLB of $200 million and $316 million, at December 31, 2024 and 2023, respectively, were secured by residential mortgage loans.

The Company’s Commercial Loan Policy sets forth guidelines for debt service coverage ratios, LTV’s and documentation standards. Commercial and industrial loans are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral and personal or government guarantees. The Company’s policy establishes debt service coverage ratio limits that require a borrower’s cash flow to be sufficient to cover principal and interest payments on all new and existing debt. Commercial and industrial loans are generally secured by the assets being financed or other business

The Company’s Commercial Loan Policy sets forth guidelines for debt service coverage ratios, LTV’s and documentation standards. Commercial real estate loans are primarily made based on identified cash flows of the borrower with consideration given to underlying real estate collateral and personal or government guarantees. The Company’s policy establishes a maximum LTV based on the type of property and debt service coverage ratio limits that require a borrower’s cash flow to be sufficient to cover principal and interest payments on all new and existing debt. Commercial real estate loans may be fixed or variable rate loans with interest rates tied to Prime Rate, FHLBNY borrowing rates, SOFR, or U.S. Treasury indices.

Agriculturally-related loans include loans to dairy farms, cash and vegetable crop farms and a variety of other livestock and crop producers. Agriculturally-related loans are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral, personal guarantees, and government related guarantees. Agriculturally-related loans are generally secured by the assets or property being financed or other business assets such as accounts receivable, livestock, equipment, or commodities/crops. The Company’s policy establishes a maximum LTV based on the type of property and debt service coverage ratio limits that require a borrower’s cash flow to be sufficient to cover principal and interest payments on all new and existing debt, with limited adjustments to consider commodity market cycles. The policy also establishes maximum LTV ratios for non-real estate collateral, such as livestock, commodities/crops, equipment and accounts receivable. Agriculturally-related loans may be fixed or variable rate with interest tied to Prime Rate, FHLBNY borrowing rates, SOFR, or U.S. Treasury indices.

The consumer loan portfolio includes indirect and direct loans relating to personal installment loans, automobile financing, and overdraft lines of credit. The majority of the consumer portfolio consists of indirect and direct automobile loans. Consumer loans are generally short-term and have fixed rates of interest that are set giving consideration to current market interest rates, the financial strength of the borrower, and internal profitability targets. The Company's Consumer Loan Underwriting Guidelines Policy establishes maximum debt to income ratios and includes guidelines for verification of applicants’ income and receipt of credit reports.

Leases are primarily made to commercial customers and the origination criteria typically includes the value of the underlying assets being financed, the useful life of the assets being financed, and identified cash flows of the borrower. Most leases carry a fixed rate of interest that is set giving consideration to current market interest rates, the financial strength of the borrower, and internal profitability targets.

The Company’s loan and lease customers are located primarily in the upstate New York and Pennsylvania communities served by Tompkins Community Bank. The Bank operates twelve banking offices in the counties of Tompkins, Cayuga, Cortland, Onondaga and Schuyler, New York; fourteen banking offices in the counties of Wyoming, Livingston, Genesee, Orleans and Monroe, New York; twelve banking offices in the counties of Putnam County, Dutchess County and Westchester, New York; and sixteen offices in the counties of Berks, Montgomery, Philadelphia, Delaware and Schuylkill, Pennsylvania. Other than general economic risks, management is not aware of any material concentrations of credit risk to any industry or individual borrower.

Directors and officers of the Company and its affiliated companies are customers of, and have other transactions with, the Company's banking subsidiaries in the ordinary course of business. Such loans and commitments are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons not related to the Company, and did not involve more than normal risk of collectability or present other unfavorable features.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments are due. Loans are placed on nonaccrual status either due to the delinquency status of principal and/or interest (generally when past due 90 or more days) or a judgment by management that the full repayment of principal and interest is unlikely. When interest accrual is discontinued, all unpaid accrued interest is reversed. Payments received on loans on nonaccrual are generally applied to reduce the principal balance of the loan. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. When

management determines that the collection of principal in full is improbable, management will charge-off a partial amount or full amount of the loan balance. Management considers specific facts and circumstances relative to each individual credit in making such a determination. For residential and consumer loans, management uses specific regulatory guidance and thresholds for determining charge-offs.


December 31, 2024
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	0	$	0	$	0	$	110,007	$	110,007
Commercial and industrial other	3,944		32		684		4,660		850,908		855,568
Subtotal commercial and industrial	3,944		32		684		4,660		960,915		965,575
Commercial real estate
Construction	1,120		17,400		0		18,520		367,411		385,931
Agriculture	81		0		0		81		217,501		217,582
Commercial real estate other	0		1,605		11,966		13,571		2,762,733		2,776,304
Subtotal commercial real estate	1,201		19,005		11,966		32,172		3,347,645		3,379,817
Residential real estate
Home equity	955		91		1,811		2,857		201,337		204,194
Mortgages	0		2,836		9,257		12,093		1,354,553		1,366,646
Subtotal residential real estate	955		2,927		11,068		14,950		1,555,890		1,570,840
Consumer and other
Indirect	3		2		7		12		217		229
Consumer and other	430		329		354		1,113		95,050		96,163
Subtotal consumer and other	433		331		361		1,125		95,267		96,392
Leases	0		0		0		0		12,484		12,484
Total loans and leases	$	6,533	$	22,295	$	24,079	$	52,907	$	5,972,201	$	6,025,108
Less: unearned income and deferred costs and fees	0		0		0		0		(5,186)		(5,186)
Total loans and leases, net of unearned income and deferred costs and fees	$	6,533	$	22,295	$	24,079	$	52,907	$	5,967,015	$	6,019,922


December 31, 2023
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	0	$	0	$	0	$	101,211	$	101,211
Commercial and industrial other	389		887		2,124		3,400		718,894		722,294
Subtotal commercial and industrial	389		887		2,124		3,400		820,105		823,505
Commercial real estate
Construction	0		0		0		0		303,406		303,406
Agriculture	61		0		0		61		221,609		221,670
Commercial real estate other	290		0		25,056		25,346		2,562,245		2,587,591
Subtotal commercial real estate	351		0		25,056		25,407		3,087,260		3,112,667
Residential real estate
Home equity	466		211		1,968		2,645		185,671		188,316
Mortgages	1,353		111		6,916		8,380		1,364,895		1,373,275
Subtotal residential real estate	1,819		322		8,884		11,025		1,550,566		1,561,591
Consumer and other
Indirect	7		11		11		29		812		841
Consumer and other	302		122		270		694		96,248		96,942
Subtotal consumer and other	309		133		281		723		97,060		97,783
Leases	0		0		0		0		15,383		15,383
Total loans and leases	$	2,868	$	1,342	$	36,345	$	40,555	$	5,570,374	$	5,610,929
Less: unearned income and deferred costs and fees	0		0		0		0		(4,994)		(4,994)
Total loans and leases, net of unearned income and deferred costs and fees	$	2,868	$	1,342	$	36,345	$	40,555	$	5,565,380	$	5,605,935


December 31, 2024
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	519	$	0
Commercial and industrial other	0		1,023		0
Subtotal commercial and industrial	0		1,542		0
Commercial real estate

Agriculture	0		129		0
Commercial real estate other	24,179		32,461		0
Subtotal commercial real estate	24,179		32,590		0
Residential real estate
Home equity	610		2,889		0
Mortgages	1,338		13,389		9
Subtotal residential real estate	1,948		16,278		9
Consumer and other
Indirect	0		13		0
Consumer and other	0		125		314
Subtotal consumer and other	0		138		314

Total loans and leases	$	26,127	$	50,548	$	323


December 31, 2023
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	20	$	0
Commercial and industrial other	0		2,253		0
Subtotal commercial and industrial	0		2,273		0
Commercial real estate

Agriculture	0		170		0
Commercial real estate other	42,038		44,280		0
Subtotal commercial real estate	42,038		44,450		0
Residential real estate
Home equity	0		3,230		0
Mortgages	0		11,942		0
Subtotal residential real estate	0		15,172		0
Consumer and other
Indirect	0		40		0
Consumer and other	0		230		101
Subtotal consumer and other	0		270		101

Total loans and leases	$	42,038	$	62,165	$	101

The difference between the interest income that would have been recorded if nonaccrual loans and leases had paid in accordance with their original terms and the interest income that was recorded, was $13.9 million for the year ended December 31, 2024, $2.2 million for the year ended December 31, 2023, and $1.4 million for year ended December 31, 2022. The Company had no material commitments to make additional advances to borrowers with nonperforming loans.