Tompkins Financial (TMP) 8-K Completion of Acquisition or Disposition of Assets

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
Tuesday July 24, 2007

Tompkins Financial Corporation reports second quarter earnings
ITHACA, NY – Tompkins Financial Corporation (TMP – American Stock Exchange)

Tompkins Financial Corporation reported diluted earnings per share of $0.65 for the second quarter of 2007, a decrease of 4.4% from the $0.68 per share reported in the same quarter of 2006.  Net income was $6.4 million for the second quarter of 2007, down 6.2% from the $6.8 million reported for the second quarter of 2006.

Diluted earnings per share were $1.23 for the six months ended June 30, 2007, down 6.1% from diluted earnings per share of $1.31 for first six months of 2006.  Net income for the year-to-date period was $12.1 million in 2007, down 7.9% from the $13.2 million reported in the first half of 2006.

Stephen S. Romaine, President and CEO stated, “Although our current period results reflect a decline from 2006, we are pleased that second quarter results showed solid improvement over the first quarter of 2007.”  Diluted earnings per share for the quarter ended June 30, 2007, were up 12.1% from the first quarter of 2007, reflecting improving trends in all key revenue categories.  Furthermore, second quarter diluted earnings per share would have shown a 6.6% increase over the second quarter of 2006 if the prior year’s results were adjusted for $685,000 in nonrecurring life insurance proceeds.  The second quarter of 2007 also includes $360,000 in after tax losses related to a portion of our securities portfolio accounted for at fair value.  These losses relate to change in the market value of securities that were negatively affected by rising market interest rates during the quarter.  These fair value losses are expected to be substantially recovered if these investments are held until maturity.

Mr. Romaine added,  “As reported in our first quarter 2007 earnings press release, the Company engaged a consulting group to assist management in identifying and implementing certain profit improvement initiatives

designed to reduce expenses and increase revenue. We have begun to see positive results from these initiatives in the second quarter.  Further implementation efforts are expected to result in a charge of approximately $600,000 (after-tax) in the third quarter of 2007 related to reorganization that will increase our focus on such areas as marketing, technology, and sales support; while consolidating support functions and standardizing processes across all banking affiliates that are necessary to entertain future acquisition opportunities.  Due to attrition and redeployment underway since the beginning of the year, the net number of positions eliminated by the reorganization is expected to be less than 4% of our total workforce across the state.   We feel the changes will improve efficiency and prepare us for future growth.”

The following significant highlights and events impacted second quarter and year-to-date results:

• Total revenue (consisting of net interest income and noninterest income) for 2007 was up 3.9% in the second quarter and 2.7% for the year-to-date, over the respective periods in 2006.  Revenue growth over last year would have been 6.5% for the second quarter and 4.0% for the year to date if the $685,000 of life insurance proceeds received in the second quarter 2006 were excluded from last year’s results.

• Net interest income was $18.5 million in the second quarter of 2007, reflecting the highest quarterly net interest income level since March 2006.  Net interest income was $36.1 million for the year-to-date period ended June 30, 2007, down 2% from the prior year.

• The net interest margin was 3.66% in the second quarter of 2007, 3.55% in the first quarter of 2007, and 3.83% in the second quarter of 2006.

• The improved net interest margin in the second quarter benefited from growth in total loans and core deposits (total deposits less time deposits of $100,000 or more, brokered deposits and municipal money market deposits) which were up 9.6% and 4.0%, respectively over the June 30, 2006.

• Noninterest income for 2007 was up 6.8% for the quarter and 11.8% year-to-date.  Key fee income categories showed solid growth over the same quarter last year with investment services income up 14.3%; insurance revenues up 24.5%; and service charges on deposit accounts up 34.5%.

• Noninterest expenses for the second quarter of 2007 were up 6.4% over the prior year. Year-to-date noninterest expenses were up 6.5% over 2006.  Current period expenses were impacted by business expansion initiatives, which included insurance agency acquisitions, expansion of retail brokerage services, and the expansion of banking offices.

• The Company repurchased 148,579 shares during the second quarter of 2007 at an average price of $37.83 per share.  For the first six months of 2007, the Company repurchased 212,279 shares at an average price of $39.26 per share.

Total assets were $2.3 billion at June 30, 2007, up 2.3% from December 31, 2006, and up 5.8% over June 30, 2006. Asset growth over the past twelve months included $119.0 million in total loans and leases, which was partially off set by a modest $3.5 million decline in total securities.  Nonperforming assets were $8.8 million at June 30, 2007, up from $4.0 million a year ago. The increase is mainly due to a $4.1 million commercial

relationship that is 90% guaranteed by a government agency.  For the first half of 2007, net charge-offs were $634,000, up from $500,000 in 2006.

Total deposits at June 30, 2007, were $1.7 billion, an increase of $51.6 million or 3.1% over June 30, 2006. The growth in deposits was primarily in core deposits, which increased by $49.8 million or 4.0%.  Deposit growth benefited from the opening of three banking offices in 2006, the Southeast Office of Mahopac National Bank (March 2006), the Greece Office of The Bank of Castile (July 2006), and the Wappingers Falls Office of Mahopac National Bank (December 2006).  

Tompkins Financial Corporation operates 39 banking offices in the New York State markets served by the Company’s subsidiary banks - Tompkins Trust Company, The Bank of Castile, and Mahopac National Bank. Through its community banking subsidiaries, the Company provides traditional banking services, and offers a full range of money management services through Tompkins Investment Services (a division of Tompkins Trust Company). The Company offers insurance services through its Tompkins Insurance Agencies, Inc. subsidiary, an independent agency serving individuals and business clients throughout New York State. The Company offers fee-based financial planning and wealth management services through its AM&M Financial Services, Inc. subsidiary. AM&M Financial Services, Inc. is also the parent Company to Ensemble Financial Services, Inc., an independent broker dealer and leading outsourcing company for financial planners and investment advisors. E ach Tompkins subsidiary operates with a community focus, meeting the unique needs of the communities served.

“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, risk, and uncertainties, all of which could change over time. Actual results could differ materially from forward-looking statements.

Tompkins Financial Corporation – Condensed Consolidated Statements of Condition (Unaudited)

(In thousands, except share data)

	As of 6/30/2007			As of 12/31/2006
ASSETS
Cash and noninterest bearing balances due from banks	$	56,400		$	48,251
Interest bearing balances due from banks		3,015			1,723
Federal funds sold		2,200			2,200
Trading securities, at fair value		62,422			0
Available-for-sale securities, at fair value		601,196			655,322
Held-to-maturity securities, fair value of $50,956 at June 30, 2007, and $59,606 at December 31, 2006		51,142			59,038
Loans and leases, net of unearned income and deferred costs and fees		1,361,415			1,326,298
Less: Allowance for loan/lease losses		14,357			14,328
Net Loans/Leases		1,347,058			1,311,970
Bank premises and equipment, net		44,321			43,273
Corporate owned life insurance		26,204			25,622
Goodwill		21,217			21,235
Other intangible assets		3,679			4,051
Accrued interest and other assets		42,203			38,152
Total Assets	$	2,261,057		$	2,210,837
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES AND SHAREHOLDERS’ EQUITY
Deposits:
Interest bearing:
Checking, savings and money market	$	704,299		$	680,844
Time		631,523			669,222
Noninterest bearing		362,321			359,354
Total Deposits		1,698,143			1,709,420
Federal funds purchased and securities sold under agreements to repurchase		188,939			191,490
Other borrowings		156,214			85,941
Other liabilities		31,255			32,914
Total Liabilities	$	2,074,551		$	2,019,765
Minority interest in consolidated subsidiaries		1,457			1,452
Shareholders’ equity:
Common stock - par value $.10 per share: Authorized 15,000,000 shares; Issued: 9,706,505 at June 30, 2007; and 9,889,569 at December 31, 2006.		971			989
Additional paid-in capital		150,785			158,203
Retained earnings		49,166			44,429
Accumulated other comprehensive loss		(14,232	)		(12,487	)
Treasury stock, at cost, 67,386 shares at June 30, 2007, and 64,418 shares at December 31, 2006.		(1,641	)		(1,514	)
Total Shareholders’ Equity	$	185,049		$	189,620
Total Liabilities, Minority Interest in Consolidated Subsidiaries And Shareholders’ Equity	$	2,261,057		$	2,210,837

Tompkins Financial Corporation – Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

	Three months ended					Six months ended
	06/30/2007			06/30/2006		06/30/2007			06/30/2006
INTEREST AND DIVIDEND INCOME
Loans	$	24,298		$	21,937	$	47,697		$	43,562
Balances due from banks		59			8		154			65
Federal funds sold		107			4		203			9
Trading securities		607			0		1,176			0
Available-for-sale securities		7,548			7,097		14,792			13,710
Held-to-maturity securities		527			693		1,063			1,415
Total Interest and Dividend Income		33,146			29,739		65,085			58,761
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more		4,125			3,430		8,544			6,375
Other deposits		7,696			5,981		15,123			11,329
Federal funds purchased and securities sold under agreements to repurchase		2,037			1,300		4,000			2,611
Other borrowings		798			959		1,366			1,658
Total Interest Expense		14,656			11,670		29,033			21,973
Net Interest Income		18,490			18,069		36,052			36,788
Less: Provision for loan/lease losses		192			74		663			533
Net Interest Income After Provision for Loan/Lease Losses		18,298			17,995		35,389			36,255
NONINTEREST INCOME
Investment services income		3,538			3,095		7,008			5,956
Insurance commissions and fees		2,814			2,261		5,530			4,465
Service charges on deposit accounts		2,805			2,085		4,728			3,995
Card services income		905			708		1,702			1,398
Other service charges		639			578		1,298			1,217
Trading revenue		(600	)		0		(148	)		0
Increase in cash surrender value of corporate owned life insurance		283			265		556			570
Life insurance proceeds		0			685		0			685
Gains on sale of loans		42			44		97			78
Other income		392			395		469			648
Net realized gain on available-for-sale securities		(17	)		0		6			0
Total Noninterest Income		10,801			10,116		21,246			19,012
NONINTEREST EXPENSES
Salary and wages		8,770			8,386		17,572			16,664
Pension and other employee benefits		2,611			2,204		5,114			4,550
Net occupancy expense of bank premises		1,543			1,252		3,048			2,428
Furniture and fixture expense		999			925		1,946			1,868
Marketing expense		544			654		1,180			1,202
Professional fees		801			331		1,372			694
Software licenses and maintenance		503			545		1,003			975
Cardholder expense		256			319		491			670
Amortization of intangible assets		162			182		343			357
Other operating expense		3,485			3,684		6,703			6,986
Total Noninterest Expenses		19,674			18,482		38,772			36,394
Income Before Income Tax Expense and Minority Interest in Consolidated Subsidiaries		9,425			9,629		17,863			18,873
Minority interest in consolidated subsidiaries		33			33		65			65
Income Tax Expense		3,031			2,817		5,657			5,632
Net Income	$	6,361		$	6,779	$	12,141		$	13,176
Basic Earnings Per Share	$	0.65		$	0.69	$	1.24		$	1.33
Diluted Earnings Per Share	$	0.65		$	0.68	$	1.23		$	1.31

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

(In thousands, except per share data)

	Quarter-Ended
											Year-Ended Dec-06
	June-07		Mar-07		Dec-06		Sept-06		June-06
Period End Balance Sheet
Securities	$	714,760	$	749,764	$	714,360	$	710,242	$	718,230	$	714,360
Loans and leases, net of unearned income  and deferred costs and fees		1,361,415		1,339,995		1,326,298		1,277,552		1,242,408		1,326,298
Allowance for loan/lease losses		14,357		14,523		14,328		14,120		13,710		14,328
Total assets		2,261,057		2,280,163		2,210,837		2,179,695		2,136,688		2,210,837
Total deposits		1,698,143		1,809,744		1,709,420		1,703,439		1,646,533		1,709,420
Federal funds purchased and securities sold under agreements to repurchase		188,939		199,665		191,490		170,679		149,027		191,490
Other borrowings		156,214		46,311		85,941		87,003		134,353		85,941
Shareholders’ Equity		185,049		191,111		189,620		188,928		181,123		189,620
Average Balance Sheet
Average earning assets	$	2,092,773	$	2,075,905	$	2,027,098	$	1,986,050	$	1,971,601	$	1,987,258
Average assets		2,251,474		2,234,524		2,181,906		2,138,042		2,118,051		2,138,943
Average interest-bearing liabilities		1,681,831		1,671,532		1,615,409		1,581,486		1,583,751		1,588,211
Average equity		188,399		189,252		191,307		183,199		179,813		184,872
Share data
Weighted average shares outstanding (basic)		9,756,118		9,846,679		9,798,941		9,816,272		9,857,712		9,857,787
Weighted average shares outstanding (diluted)		9,823,184		9,947,815		9,970,466		9,960,340		9,970,639		9,999,365
Period-end shares outstanding		9,673,858		9,809,753		9,856,922		9,790,547		9,827,315		9,856,922
Book value per share	$	19.13	$	19.48	$	19.24	$	19.30	$	18.43	$	19.24
Income Statement
Net interest income	$	18,490	$	17,558	$	17,965	$	18,104	$	18,069	$	72,857
Provision for loan/lease losses		192		471		409		482		74		1,424
Noninterest income		10,801		10,450		12,120		9,960		10,116		41,091
Noninterest expense		19,674		19,097		18,058		17,459		18,482		71,910
Minority interest in consolidated subsidiaries		33		33		32		33		33		131
Income tax expense		3,031		2,626		3,798		3,287		2,817		12,716
Net income		6,361		5,781		7,788		6,803		6,779		27,767
Basic earnings per share	$	0.65	$	0.59	$	0.79	$	0.69	$	0.69	$	2.82
Diluted earnings per share	$	0.65	$	0.58	$	0.78	$	0.68	$	0.68	$	2.78
Asset Quality
Net charge-offs	$	358	$	276	$	201	$	72	$	167	$	773
Nonaccrual loans and leases		8,474		7,358		2,994		3,307		2,937		2,994
Loans and leases 90 days past due and accruing		2		10		8		519		475		8
Troubled debt restructurings not included above		0		0		0		0		50		0
Total nonperforming loans and leases		8,476		7,368		3,002		3,826		3,462		3,002
OREO		362		345		348		354		513		348
Nonperforming assets		8,838		7,713		3,350		4,180		3,975		3,350

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

	Quarter-Ended
																Year-Ended Dec-06
	June-07			Mar-07			Dec-06			Sept-06			June-06
Credit Quality
Net loan and lease losses/ average loans  and leases *		0.11	%		0.08	%		0.06	%		0.02	%		0.05	%		0.06	%
Nonperforming loans and leases/loans and leases		0.62	%		0.55	%		0.23	%		0.30	%		0.29	%		0.23	%
Nonperforming assets/assets		0.39	%		0.34	%		0.15	%		0.19	%		0.19	%		0.15	%
Allowance/nonperforming loans and leases		169.38	%		197.11	%		477.28	%		369.05	%		385.98	%		477.28	%
Allowance/loans and leases		1.05	%		1.08	%		1.08	%		1.11	%		1.10	%		1.08	%
Capital Adequacy (period-end)
Tier I capital / average assets		7.9	%		8.1	%		8.3	%		8.3	%		8.3	%		8.3	%
Total capital / risk-weighted assets		12.6	%		12.8	%		13.1	%		13.2	%		13.7	%		13.1	%
Profitability
Return on average assets *		1.13	%		1.05	%		1.42	%		1.26	%		1.28	%		1.30	%
Return on average equity *		13.54	%		12.39	%		16.15	%		14.73	%		15.12	%		15.02	%
Net interest margin (TE) *		3.66	%		3.55	%		3.64	%		3.75	%		3.83	%		3.81	%

* Quarterly ratios have been annualized

	Quarter-ended
													Year-Ended Dec-06
Non-GAAP Disclosure	June-07		Mar-07		Dec-06			Sept-06		June-06
Reported net income		6,361		5,781		7,788			6,803		6,779			27,767
Adjustments:
Life insurance proceeds											(685	)
Proceeds from sale of credit card portfolio (after tax)						(1,537	)							(2,222	)
Subtotal adjustments		0		0		(1,537	)		0		(685	)		(2,222	)
Adjusted net income		6,361		5,781		6,251			6,803		6,094			25,545
Adjusted diluted earnings per share		.65		.58		.63			.68		.61			2.56

	Year-to-date period ended
Non-GAAP Disclosure	June-07		June-06
Reported net income		12,141		13,176
Adjustments:
Life insurance proceeds				(685	)
Subtotal adjustments		0		(685	)
Adjusted net income		12,141		12,491
Adjusted earnings per share		1.23		1.24