TOMPKINS FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - TOMPKINS FINANCIAL CORP	tompkins_8k.htm
EX-99.2 - EXHIBIT 99.2 - TOMPKINS FINANCIAL CORP	ex99_2.htm

Exhibit 99.1

	For more information contact:
	Stephen S. Romaine, President & CEO
	Francis M. Fetsko, CFO
	Tompkins Financial Corporation 607.273.3210

For Immediate Release

Wednesday, April 27, 2011

Tompkins Financial Corporation reports increase in first quarter earnings

ITHACA, NY – Tompkins Financial Corporation (TMP–NYSE Amex)

Tompkins Financial Corporation reported record first quarter net income of $8.8 million for the first quarter of 2011, an increase of 4.2% from the $8.4 million reported for the same period in 2010. Diluted earnings per share were $0.80 for the first quarter of 2011, a 2.6% increase from the $0.78 reported for the first quarter of 2010.

President and CEO Stephen S. Romaine commented, “We are very pleased to report that first quarter earnings represented the best first quarter in our Company’s history. Results for the quarter benefited from our diversified revenue stream, as growth in wealth management fees, insurance commission, and card services fees helped offset a decline in net interest income.”

Selected highlights for the first quarter of 2011 are included below:

	●	Capital levels showed continued growth during the quarter and ratios remain well above the regulatory well capitalized minimums. Tier I capital as a percentage of average assets was 8.22%; and the ratio of total capital to risk-weighted assets of 13.66%. These ratios are up from 8.02% and 13.42%, respectively at December 31, 2010.

	●	Total loans were $1.9 billion at March 31, 2011, up $27.3 million or 1.5% from March 31, 2010.

	●	The level of nonperforming assets declined for the second consecutive quarter, although nonperforming assets levels remain above the totals reported at March 31, 2010. The ratio of nonperforming assets to total assets of 1.40% at March 31, 2011, continues to be well below the most recent peer averages published by the Federal Reserve and we were continuing to receive regular payments on approximately 69% of loan balances that we categorize as nonperforming.

	●	Total deposits were $2.6 billion at quarter end, up 4.0% from the same period in 2010. Noninterest-bearing deposits totaled $520.6 million at March 31, 2011, an increase of 18.6% over the first quarter of 2010.

	●	Other borrowings of $140.4 million at March 31, 2011 were down 26.3% from March 31, 2010, as deposit growth was used to pay down overnight borrowings with the FHLB.

	●	The net interest margin for the first quarter of 2011 was 3.78% compared to 3.95% for the first quarter of 2010. Despite the decline in net interest margin, net interest income of $27.5 million for the first quarter of 2011 was down less than 1.5% when compared to the same quarter last year due to growth in earning assets (primarily in the securities portfolio).

	●	Noninterest income was $12.5 million for the quarter, up 10.4% from the same period prior year. Fee income from investment services, insurance, and card services were all up for the quarter, while service charges on deposit accounts declined. Other income in the first quarter of 2011 included a $504,000 gain related to an investment in a Small Business Investment Company.

	●	Noninterest expense was $25.2 million for the quarter, up 2.9% from the first quarter of 2010. The increase was mainly centered in salaries and employee benefits.

	●	The provision for loan and lease losses was $1.9 million in the first quarter of 2011, compared to $2.2 million in the first quarter of 2010. Net charge-offs for the quarter of $1.7 million are up over the $1.2 million recorded for the same quarter last year, yet remain well below the most recent peer averages published by the Federal Reserve.

	●	The Company’s allowance for loan and lease losses totaled $28.0 million at March 31, 2011, which represented 1.46% of total loans, compared to $27.8 million and 1.46% at December 31, 2010 and $25.4 million and 1.34% at March 31, 2010. The allowance for loan and lease losses, as a percentage of nonperforming loans improved during the most recent quarter to 64.33% from 61.46% in December 2010.

Mr. Romaine added, “Although the business and regulatory climates remain challenging, we are encouraged by these first quarter results that showed growth in earnings, revenue, and capital over the same period last year. As we celebrate our Company’s 175th anniversary in 2011, we remain more committed than ever to our strategy of long term sustainable growth that has served us so well during the most recent, and many previous, economic downturns.”

Tompkins Financial Corporation operates 45 banking offices in the New York State markets served by the Company’s three community banks - Tompkins Trust Company, The Bank of Castile, and Mahopac National Bank, insurance through Tompkins Insurance Agencies, Inc. and wealth management through Tompkins Financial Advisors.

“Safe Harbor” Statement under the Private Securities Litigation Reform of 1995:

This press release may include forward-looking statements with respect to revenue sources, growth, market risk, and corporate objectives. The Company assumes no duty, and specifically disclaims any obligation, to update forward-looking statements, and cautions that these statements are subject to numerous assumptions, risks, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

1 Federal Reserve peer ratio as of December 31, 2010, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data) (Unaudited)	As of			As of
	03/31/2011			12/31/2010

ASSETS
Cash and noninterest bearing balances due from banks	$	40,009		$	47,339
Interest bearing balances due from banks		7,605			2,226
Federal funds sold		17,400			0
Money market funds		100			100
Cash and Cash Equivalents		65,114			49,665

Trading securities, at fair value		21,831			22,837
Available-for-sale securities, at fair value		1,049,504			1,039,608
Held-to-maturity securities, fair value of $51,258 at March 31, 2011, and $56,064 at December 31, 2010		50,108			54,973
Loans and leases, net of unearned income and deferred costs and fees		1,914,344			1,910,358
Less: Allowance for loan and lease losses		28,035			27,832
Net Loans and Leases		1,886,309			1,882,526

Federal Home Loan Bank stock and Federal Reserve Bank stock		17,575			21,985
Bank premises and equipment, net		44,867			46,103
Corporate owned life insurance		41,935			40,024
Goodwill		41,649			41,649
Other intangible assets, net		4,039			4,207
Accrued interest and other assets		55,963			56,766
Total Assets	$	3,278,894		$	3,260,343
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		1,348,182			1,230,815
Time		743,720			741,829
Noninterest bearing		520,615			523,229
Total Deposits		2,612,517			2,495,873

Federal funds purchased and securities sold under agreements to repurchase		182,009			183,609
Other borrowings, including certain amounts at fair value of $11,454 at March 31, 2011 and $11,629 at December 31, 2010		140,353			244,193
Trust preferred debentures		25,061			25,060
Other liabilities		36,717			38,200
Total Liabilities	$	2,996,657		$	2,986,935
EQUITY
Tompkins Financial Corporation shareholders’ equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 10,988,320 at March 31, 2011; and 10,934,385 at December 31, 2010		1,099			1,093
Additional paid-in capital		200,444			198,114
Retained earnings		81,513			76,446
Accumulated other comprehensive income (loss)		19			(1,260	)
Treasury stock, at cost – 88,400 shares at March 31, 2011, and 92,025 shares at December 31, 2010		(2,323	)		(2,437	)

Total Tompkins Financial Corporation Shareholders’ Equity		280,752			271,956
Noncontrolling interests		1,485			1,452
Total Equity	$	282,237		$	273,408
Total Liabilities and Equity	$	3,278,894		$	3,260,343

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
(In thousands, except per share data) (Unaudited)	03/31/2011			03/31/2010
INTEREST AND DIVIDEND INCOME
Loans	$	25,701		$	26,618
Due from banks		6			12
Federal funds sold		3			4
Trading securities		235			309
Available-for-sale securities		7,687			9,000
Held-to-maturity securities		365			407
Federal Home Loan Bank stock and Federal Reserve Bank stock		290			284
Total Interest and Dividend Income		34,287			36,634
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		849			1,178
Other deposits		2,625			3,827
Federal funds purchased and repurchase agreements		1,291			1,425
Trust preferred debentures		405			367
Other borrowings		1,575			1,893
Total Interest Expense		6,745			8,690
Net Interest Income		27,542			27,944
Less: Provision for loan/lease losses		1,910			2,183
Net Interest Income After Provision for Loan/Lease Losses		25,632			25,761
NONINTEREST INCOME
Investment services income		3,841			3,738
Insurance commissions and fees		3,374			3,166
Service charges on deposit accounts		1,984			2,057
Card services income		1,245			975
Mark-to-market (loss) gain on trading securities		(50	)		90
Mark-to-market gain (loss) on liabilities held at fair value		174			(128	)
Other income		1,829			1,304
Net gain on securities transactions		95			118
Total Noninterest Income		12,492			11,320
NONINTEREST EXPENSES
Salaries and wages		10,825			10,339
Pension and other employee benefits		4,031			3,911
Net occupancy expense of premises		1,894			1,881
Furniture and fixture expense		1,038			1,183
FDIC insurance		1,050			911
Amortization of intangible assets		170			202
Other operating expense		6,208			6,067
Total Noninterest Expenses		25,216			24,494
Income Before Income Tax Expense		12,908			12,587
Income Tax Expense		4,102			4,138
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		8,806			8,449
Less: Net income attributable to noncontrolling interests		33			33
Net Income Attributable to Tompkins Financial Corporation	$	8,773		$	8,416
Basic Earnings Per Share	$	0.80		$	0.78
Diluted Earnings Per Share	$	0.80		$	0.78

Average Consolidated Balance Sheet and Net Interest Analysis

	Year to Date Period Ended								Year to Date Period Ended
	March 31, 2011								March 31, 2010
(Dollar amounts in thousands)	Average Balance (YTD)		Interest			Average Yield/Rate			Average Balance (YTD)		Interest			Average Yield/Rate
ASSETS

Interest-earning assets

Interest-bearing balances due from banks	$	16,151	$	6			0.15	%	$	37,885	$	12			0.13	%
Money market funds		100		—			0.00	%		100		—			0.00	%
Securities (1)
U.S. Government securities		928,576		6,988			3.05	%		827,808		8,219			4.03	%
Trading securities		22,542		235			4.23	%		31,279		309			4.01	%
State and municipal (2)		112,328		1,447			5.22	%		105,139		1,573			6.07	%
Other securities (2)		15,237		180			4.79	%		18,563		224			4.89	%
Total securities		1,078,683		8,850			3.33	%		982,789		10,325			4.26	%
Federal Funds Sold		8,767		3			0.14	%		9,080		4			0.18	%
FHLBNY and FRB stock		18,923		290			6.21	%		19,633		284			5.87	%
Loans, net of unearned income (3)
Real estate		1,368,589		18,429			5.46	%		1,327,849		18,840			5.75	%
Commercial loans (2)		456,691		6,022			5.35	%		472,900		6,260			5.37	%
Consumer loans		72,532		1,254			7.01	%		84,083		1,460			7.04	%
Direct lease financing		8,752		131			6.07	%		11,634		176			6.14	%
Total loans, net of unearned income		1,906,564		25,836			5.50	%		1,896,466		26,736			5.72	%
Total interest-earning assets		3,029,188		34,985			4.68	%		2,945,953		37,361			5.14	%

Other assets		223,379								227,111

Total assets		3,252,567								3,173,064

LIABILITIES & EQUITY

Deposits

Interest-bearing deposits
Interest bearing checking, savings, & money market		1,309,121		1,171			0.36	%		1,229,168		1,790			0.59	%
Time deposits > $100,000		309,746		849			1.11	%		335,260		1,178			1.42	%
Time deposits < $100,000		424,028		1,434			1.37	%		429,464		1,873			1.77	%
Brokered time deposits < $100,000		6,074		20			1.34	%		37,242		164			1.79	%
Total interest-bearing deposits		2,048,969		3,474			0.69	%		2,031,134		5,005			1.00	%
Federal funds purchased & securities sold under agreements to repurchase		185,456		1,291			2.82	%		187,753		1,425			3.08	%
Other borrowings		171,659		1,575			3.72	%		199,202		1,893			3.85	%
Trust preferred debentures		25,061		405			6.55	%		25,056		367			5.94	%
Total interest-bearing liabilities		2,431,145		6,745			1.13	%		2,443,145		8,690			1.44	%
Noninterest bearing deposits		507,673								440,113
Accrued expenses and other liabilities		36,466								40,220
Total liabilities		2,975,284								2,923,478

Tompkins Financial Corporation Shareholders’ equity		275,814								248,119

Noncontrolling interest		1,469								1,467

Total equity		277,283								249,586

Total liabilities and equity	$	3,252,567							$	3,173,064

Interest rate spread							3.55	%							3.70	%

Net interest income/margin on earning assets				28,240			3.78	%				28,671			3.95	%

Tax Equivalent Adjustment				(698	)							(727	)

Net interest income per consolidated financial statements			$	27,542							$	27,944

(1)	Average balances and yields on available-for-sale securities are based on historical amortized cost.
(2)	Interest income includes the tax effects of taxable-equivalent adjustments using a combined New York State and Federal effective income tax rate of 40% to increase tax exempt interest income to taxable-equivalent basis.
(3)	Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company’s condensed consolidated financial statements included in Part I of the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2010.

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands, except per share data)	Quarter-Ended										Year-Ended
	Mar-11		Dec-10		Sep-10		Jun-10		Mar-10		Dec-10

Period End Balance Sheet
Securities	$	1,121,443	$	1,117,418	$	1,053,038	$	1,023,220	$	1,026,301	$	1,117,418
Loans and leases, net of unearned income and deferred costs and fees		1,914,344		1,910,358		1,914,064		1,900,303		1,887,038		1,910,358
Allowance for loan and lease losses		28,035		27,832		28,684		26,530		25,366		27,832
Total assets		3,278,894		3,260,343		3,247,111		3,161,648		3,206,763		3,260,343

Total deposits		2,612,517		2,495,873		2,528,528		2,460,223		2,512,201		2,495,873
Federal funds purchased and securities sold under agreements to repurchase		182,009		183,609		191,596		175,336		181,255		183,609
Other borrowings		140,353		244,193		182,779		189,561		190,545		244,193
Trust preferred debentures		25,061		25,060		25,059		25,058		25,057		25,060
Shareholders’ equity		282,237		273,408		276,495		268,683		254,444		273,408

Average Balance Sheet
Average earning assets	$	3,029,188	$	3,010,361	$	2,937,795	$	2,953,673	$	2,945,953	$	2,962,056
Average assets		3,252,567		3,243,822		3,168,478		3,181,476		3,173,064		3,191,840
Average interest-bearing liabilities		2,431,145		2,424,998		2,372,630		2,424,245		2,443,145		2,416,085
Average equity		277,283		280,051		273,517		260,197		249,586		265,943

Share data
Weighted average shares outstanding (basic)		10,905,197		10,888,138		10,845,106		10,818,218		10,724,644		10,812,502
Weighted average shares outstanding (diluted)		10,955,430		10,936,042		10,893,642		10,876,421		10,776,934		10,864,450
Period-end shares outstanding		10,953,410		10,898,475		10,878,813		10,830,001		10,793,573		10,898,475
Book value per share		25.77		25.09		25.42		24.81		23.57		25.09

Income Statement
Net interest income	$	27,542	$	27,861	$	27,864	$	28,106	$	27,944	$	111,775
Provision for loan/lease losses		1,910		1,433		3,483		1,408		2,183		8,507
Noninterest income		12,492		12,281		11,227		11,331		11,320		46,159
Noninterest expense		25,216		25,183		24,852		24,516		24,494		99,045
Income tax expense		4,102		4,602		3,233		4,447		4,138		16,420
Net income attributable to Tompkins Financial Corporation		8,773		8,892		7,490		9,033		8,416		33,831
Noncontrolling interests		33		32		33		33		33		131
Basic earnings per share	$	0.80	$	0.82	$	0.69	$	0.84	$	0.78	$	3.13
Diluted earnings per share	$	0.80	$	0.81	$	0.69	$	0.83	$	0.78	$	3.11

Asset Quality
Net charge-offs		1,707		2,285		1,329		244		1,167		5,025
Nonaccrual loans and leases		39,902		41,501		48,966		33,645		29,521		41,501
Loans and leases 90 days past due and accruing		1,266		1,217		1,737		1,758		51		1,217
Troubled debt restructurings not included above		2,411		2,564		3,264		3,264		3,703		2,564
Total nonperforming loans and leases		43,579		45,282		53,967		38,667		33,275		45,282
OREO		2,270		1,255		1,845		1,638		558		1,255
Nonperforming assets		45,849		46,537		55,812		40,305		33,833		46,537

RATIO ANALYSIS	Quarter-Ended															Year-Ended
Credit Quality	Mar-11			Dec-10			Sep-10			Jun-10			Mar-10			Dec-10
Net loan and lease losses/ average loans and leases *		0.36	%		0.48	%		0.28	%		0.05	%		0.25	%		0.26	%
Nonperforming loans and leases/loans and leases		2.28	%		2.37	%		2.82	%		2.03	%		1.76	%		2.37	%
Nonperforming assets/assets		1.40	%		1.43	%		1.72	%		1.27	%		1.06	%		1.43	%
Allowance/nonperforming loans and leases		64.33	%		61.46	%		53.15	%		68.61	%		76.23	%		61.46	%
Allowance/loans and leases		1.46	%		1.46	%		1.50	%		1.40	%		1.34	%		1.46	%

Capital Adequacy (period-end)
Tier I capital / average assets		8.22	%		8.02	%		8.01	%		7.77	%		7.56	%		8.02	%
Total capital / risk-weighted assets		13.66	%		13.42	%		13.14	%		13.10	%		12.56	%		13.42	%

Profitability
Return on average assets *		1.09	%		1.09	%		0.94	%		1.14	%		1.08	%		1.06	%
Return on average equity *		12.83	%		12.60	%		10.86	%		13.92	%		13.68	%		12.72	%
Net interest margin (TE) *		3.78	%		3.75	%		3.85	%		3.91	%		3.95	%		3.86	%

* Quarterly ratios have been annualized

TOMPKINS FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 29, 2011

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