Tompkins Financial (TMP) 8-K Results of Operations and Financial Condition

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 23, 2008

Tompkins Financial Corporation first quarter earnings up 29.9%
ITHACA, NY – Tompkins Financial Corporation (TMP–American Stock Exchange)

Tompkins Financial Corporation reported diluted earnings per share of $0.77 for the first quarter of 2008, an increase of 32.8% from the $0.58 per share reported in the first quarter of 2007. Net income was $7.5 million for the first quarter of 2008, up 29.9% over net income of $5.8 million reported in the first quarter of 2007.

Stephen S. Romaine, President and CEO stated, “We are extremely pleased to report such strong results to start the year, in what has been a very challenging economic environment. Compared to the same period in 2007, the first quarter of 2008 reflected solid growth in both net interest income and noninterest income. At the same time, in contrast to many larger financial institutions, asset quality remains strong with nonperforming asset ratios nearly unchanged from the prior year. These results provide reassurance that our strategy, which includes a focus on reasonable growth, maintenance of high standards for credit quality, and diversified revenue streams is proving successful.”

First quarter results for 2008 benefited from the proceeds received from the Company’s allocation of the Visa, Inc. initial public offering (the Visa IPO). First quarter 2008 results include $1.6 million of pre-tax other income related to the Visa IPO, consisting of a $1.2 million gain on the mandatory partial redemption of Visa stock and a $0.4 million partial reversal of an accrual for indemnification charges established in the fourth quarter of 2007. Diluted earnings per share for the first quarter would have still shown a 15.5% increase over 2007, if results were adjusted for the revenue related to the Visa IPO. See Summary Financial Data for a reconciliation of the amounts.

The Company’s largest revenue source, net interest income, benefited from both improved margins and growth in earning assets. Net interest income of $19.8 million in the first quarter was up 12.9% over the same period in 2007. The net interest margin improved to 3.68% in the first quarter of 2008, compared to 3.55% in the first quarter of 2007. Average earnings assets were $2.2 billion in the first quarter of 2008; reflecting a 7.6% increase over the same period in 2007.

Total assets were $2.5 billion at March 31, 2008, up 7.5% from March 31, 2007. Asset growth over the past twelve months included $115.6 million in total loans and leases, and $61.9 million in total securities. Total deposits at March 31, 2008, were $1.8 billion, an increase of $31.2 million from March 31, 2007. Core deposits (total deposits less time deposits of $100,000 or more, brokered deposits and municipal money market deposits) increased by 6.3% or $80.9 million from the prior year and represented approximately 74.7% of total deposits at March 31, 2008. Growth in core deposits was partially offset by anticipated declines in large time deposits.

Mr. Romaine added, “We are extremely pleased to have maintained our strong asset quality in an economic environment where many banks have seen significant deterioration.” Nonperforming assets at March 31, 2008, represented 0.38% of total assets, relatively unchanged from 0.34% twelve months earlier. For comparison purposes, the Federal Reserve Board peer group for Tompkins Financial reported nonperforming assets of 0.95% of total assets as of December 31, 2007, the most recent period for which peer data is available. For the three months ended March 31, 2008, net charge-offs represented 0.13% of average loans and leases, compared to 0.08% for the same period in 2007. Provision for loan and lease loss expense for the first quarter of 2008 was $625,000, up from $471,000 for the first quarter of 2007, reflecting growth in the loan portfolio.

Noninterest income for the first quarter of 2008 was $12.5 million, up 19.8% from the same period in 2007. First quarter 2008 noninterest income includes $1.6 million in pre-tax gains related to the previously mentioned Visa IPO and $553,000 of net losses, reflecting mark-to-market adjustments on securities and borrowings held at fair value. Key fee income categories showed growth over the same quarter last year with investment services income up 5.7%; insurance revenues up 2.7%; and service charges on deposit accounts up 31.5%.

Noninterest expenses for the first quarter of 2008 were $20.4 million, an increase of 6.7% over the same period prior year. The increase in the first quarter was primarily in compensation and benefits related expenses, reflecting annual merit increases, and stock-based and other incentive compensation expense.

Mr. Romaine added, “We are very encouraged by the recent trends in our performance and look forward to the opportunities presented by our pending acquisition of Sleepy Hollow Bancorp in Westchester County, New York. We recently received regulatory approval for the transaction and expect to close in the second quarter of 2008.”

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. Each 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)
ASSETS	As of 03/31/2008			As of 12/31/2007
Cash and noninterest bearing balances due from banks	$	54,034		$	46,705
Interest bearing balances due from banks		3,592			3,154
Federal funds sold		0			0
Trading securities, at fair value		47,691			60,135
Available-for-sale securities, at fair value		715,689			639,148
Held-to-maturity securities, fair value of $49,684 at March 31, 2008, and $50,297 at December 31, 2007		48,247			49,593
Loans and leases, net of unearned income and deferred costs and fees		1,455,570			1,440,122
Less: Allowance for loan/lease losses		14,781			14,607
Net Loans and Leases		1,440,789			1,425,515
Bank premises and equipment, net		44,654			44,811
Corporate owned life insurance		30,160			29,821
Goodwill		22,973			22,894
Other intangible assets		3,323			3,497
Accrued interest and other assets		39,261			34,186
Total Assets	$	2,450,413		$	2,359,459
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES AND SHAREHOLDERS’ EQUITY
Deposits:
Interest bearing:
Checking, savings and money market	$	864,137		$	741,836
Time		600,001			585,142
Noninterest bearing		376,816			393,848
Total Deposits		1,840,954			1,720,826
Federal funds purchased and securities sold under agreements to repurchase, fair value of $15,986 at March 31, 2008 and $15,553 at December 31, 2007.		210,079			195,447
Other borrowings, fair value of $11,210 at March 31, 2008 and $10,795 at December 31, 2007.		156,439			210,862
Other liabilities		31,768			33,677
Total Liabilities	$	2,239,240		$	2,160,812
Minority interest in consolidated subsidiaries		1,485			1,452
Shareholders’ equity:
Common stock - par value $.10 per share: Authorized 15,000,000 shares; Issued: 9,662,340 at March 31, 2008; and 9,615,430 at December 31, 2007.		966			962
Additional paid-in capital		149,835			147,657
Retained earnings		61,120			57,255
Accumulated other comprehensive loss		(330	)		(6,900	)
Treasury stock, at cost, 72,421 shares at March 31, 2008, and 70,896 shares at December 31, 2007.		(1,903	)		(1,779	)
Total Shareholders’ Equity	$	209,688		$	197,195
Total Liabilities, Minority Interest in Consolidated Subsidiaries
And Shareholders’ Equity	$	2,450,413		$	2,359,459

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

(in thousands except per share data)	Three months ended
	03/31/2008			03/31/2007
INTEREST AND DIVIDEND INCOME
Loans	$	24,413		$	23,399
Balances due from banks		77			96
Federal funds sold		20			96
Available-for-sale securities		8,081			7,243
Trading securities		626			569
Held-to-maturity securities		474			536
Total Interest and Dividend Income		33,691			31,939
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more		2,795			4,419
Other deposits		7,161			7,426
Federal funds purchased and securities sold under agreements to repurchase		2,037			1,963
Other borrowings		1,865			568
Total Interest Expense		13,858			14,376
Net Interest Income		19,833			17,563
Less: Provision for loan/lease losses		625			471
Net Interest Income After Provision for Loan/Lease Losses		19,208			17,092
NONINTEREST INCOME
Investment services income		3,669			3,471
Insurance commissions and fees		2,790			2,716
Service charges on deposit accounts		2,525			1,920
Card services income		802			798
Other service charges		621			657
Mark-to-market gain on trading securities		295			452
Mark-to-market loss on liabilities held at fair value		(848	)		0
Increase in cash surrender value of corporate owned life insurance		337			272
(Losses) gains on sales of loans		(3	)		55
Other income		2,081			81
Net realized gain on available-for-sale securities		247			23
Total Noninterest Income		12,516			10,445
NONINTEREST EXPENSES
Salary and wages		9,369			8,802
Pension and other employee benefits		2,695			2,503
Net occupancy expense of bank premises		1,621			1,504
Furniture and fixture expense		924			947
Marketing expense		562			635
Professional fees		629			650
Software licenses and maintenance		609			500
Cardholder expense		294			235
Amortization of intangible assets		148			181
Other operating expense		3,530			3,140
Total Noninterest Expenses		20,381			19,097
Income Before Income Tax Expense and Minority
Interest in Consolidated Subsidiaries		11,343			8,440
Minority interest in consolidated subsidiaries		33			33
Income Tax Expense		3,802			2,626
Net Income	$	7,508		$	5,781
Basic Earnings Per Share	$	0.78		$	0.59
Diluted Earnings Per Share	$	0.77		$	0.58

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

(In thousands, except per share data)	Quarter-Ended										Year-Ended
	Mar-08		Dec-07		Sept-07		June-07		Mar-07		Dec-07
Period End Balance Sheet
Securities	$	811,627	$	748,876	$	751,242	$	714,760	$	749,764	$	748,876
Loans and leases, net of unearned income and deferred costs and fees		1,455,570		1,440,122		1,383,928		1,361,415		1,339,995		1,440,122
Allowance for loan/lease losses		14,781		14,607		14,410		14,357		14,523		14,607
Total assets		2,450,413		2,359,459		2,316,862		2,261,057		2,280,163		2,359,459
Total deposits		1,840,954		1,720,826		1,725,728		1,698,143		1,809,744		1,720,826
Federal funds purchased and securities sold under agreements to repurchase		210,079		195,447		196,085		188,939		199,665		195,447
Other borrowings		156,439		210,862		148,213		156,214		46,311		210,862
Shareholders’ Equity		209,688		197,195		189,808		185,049		191,111		197,195
Average Balance Sheet
Average earning assets	$	2,233,023	$	2,154,891	$	2,097,965	$	2,092,773	$	2,075,905	$	2,105,581
Average assets		2,405,040		2,318,558		2,259,801		2,251,474		2,234,524		2,266,224
Average interest-bearing liabilities		1,796,953		1,717,843		1,674,654		1,681,831		1,671,532		1,686,559
Average equity		202,195		191,221		185,384		188,399		189,252		188,482
Share data
Weighted average shares outstanding (basic)		9,602,478		9,560,649		9,627,356		9,756,118		9,846,679		9,696,724
Weighted average shares outstanding (diluted)		9,696,550		9,657,751		9,699,091		9,823,184		9,947,815		9,781,789
Period-end shares outstanding		9,629,693		9,582,783		9,580,034		9,673,858		9,809,753		9,582,783
Book value per share	$	21.78	$	20.58	$	19.81	$	19.13	$	19.48	$	20.58
Income Statement
Net interest income	$	19,833	$	19,473	$	18,503	$	18,490	$	17,563	$	74,029
Provision for loan/lease losses		625		479		387		192		471		1,529
Noninterest income		12,516		11,221		11,584		10,799		10,445		44,049
Noninterest expense		20,381		19,588		19,699		19,672		19,097		78,056
Minority interest in consolidated subsidiaries		33		32		33		33		33		131
Income tax expense		3,802		3,171		3,163		3,031		2,626		11,991
Net income		7,508		7,424		6,805		6,361		5,781		26,371
Basic earnings per share	$	0.78	$	0.78	$	0.71	$	0.65	$	0.59	$	2.72
Diluted earnings per share	$	0.77	$	0.77	$	0.70	$	0.65	$	0.58	$	2.70
Asset Quality
Net charge-offs	$	451	$	282	$	334	$	358	$	276	$	1,250
Nonaccrual loans and leases		9,008		8,890		7,869		8,474		7,358		8,890
Loans and leases 90 days past due and accruing		53		312		370		2		10		312
Troubled debt restructurings not included above		139		145		150		0		0		145
Total nonperforming loans and leases		9,200		9,347		8,239		8,476		7,368		9,347
OREO		5		5		345		362		345		5
Nonperforming assets		9,205		9,352		8,584		8,838		7,713		9,352

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

	Quarter-Ended															Year-Ended
	Mar-08			Dec-07			Sept-07			June-07			Mar-07			Dec-07
Credit Quality
Net loan and lease losses/ average loans and leases *		0.13	%		0.08	%		0.10	%		0.11	%		0.08	%		0.09	%
Nonperforming loans and leases/loans and leases		0.63	%		0.65	%		0.60	%		0.62	%		0.55	%		0.65	%
Nonperforming assets/assets		0.38	%		0.40	%		0.37	%		0.39	%		0.34	%		0.40	%
Allowance/nonperforming loans and leases		160.67	%		156.27	%		174.90	%		169.38	%		197.11	%		156.27	%
Allowance/loans and leases		1.02	%		1.01	%		1.04	%		1.05	%		1.08	%		1.01	%
Capital Adequacy (period-end)
Tier I capital / average assets		7.9	%		7.9	%		7.9	%		7.9	%		8.1	%		7.9	%
Total capital / risk-weighted assets		12.4	%		12.2	%		12.4	%		12.6	%		12.8	%		12.2	%
Profitability
Return on average assets *		1.26	%		1.27	%		1.19	%		1.13	%		1.05	%		1.16	%
Return on average equity *		14.93	%		15.40	%		14.56	%		13.54	%		12.39	%		13.99	%
Net interest margin (TE) *		3.68	%		3.70	%		3.61	%		3.66	%		3.55	%		3.63	%

* Quarterly ratios have been annualized

	Quarter-ended											Year-Ended
Non-GAAP Disclosure	Mar-08			Dec-07		Sept-07		June-07		Mar-07		Dec-07
Reported net income		7,508			7,424		6,805		6,361		5,781		26,371
Adjustments:
Proceeds and accrual adjustment from VISA IPO (after-tax)		(983	)
Reorganization related charges (after-tax)							712						712
Accrual for VISA settlements (after-tax)					517								517
Subtotal adjustments		(983	)		517		712		0		0		1,229
Adjusted net income		6,525			7,941		7,517		6,361		5,781		27,600
Weighted average shares outstanding (diluted)		9,696,550			9,657,751		9,699,091		9,823,184		9,947,815		9,781,789
Adjusted diluted earnings per share		.67			.82		.78		.65		.58		2.82