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, July 23, 2008

Tompkins Financial Corporation reports 12.3% increase in second quarter earnings per share

ITHACA, NY – Tompkins Financial Corporation (TMP–American Stock Exchange)

Tompkins Financial Corporation reported diluted earnings per share of $0.73 for the second quarter of 2008, an increase of 12.3% from the $0.65 per share reported in the second quarter of 2007. Net income was $7.1 million for the second quarter of 2008, up 11.9% over net income of $6.4 million reported in the second quarter of 2007.

Stephen S. Romaine, President and CEO stated, “Business results remained strong for the quarter. Our net interest income reached a record level for the third consecutive quarter, while noninterest income improved by 7.0% from the same period last year. Our superior performance has recently been recognized by several publications, which have included: Tompkins Financial being recognized by the Staton Institute® in its 2009 Edition of America’s Finest Companies®, Tompkins Trust Company being recognized as a Top Performer in the June 2008 issue of Independent Banker™, Tompkins Insurance Agencies being recognized by the Bank Insurance Market Research Group in its 2007 edition of Who’s Who in Bank Insurance®; and AM&M Financial being recognized as a Top Dog in the July/August issue of Wealth Manager Magazine. It is a pleasure to see our superior performance recognized in these publications, which stands in contrast to so many reports coming from our industry.”

For the first six months of 2008, diluted earnings per share of $1.50 reflect an increase of 22.0% from the $1.23 per share reported in the same period of 2007. Net income was $14.6 million for the first half of 2008, up 20.5% over net income of $12.1 million for the same period in 2007. The year-to-date results benefited from the proceeds received from the Company’s allocation of the Visa, Inc. initial public offering (the Visa IPO) in the first quarter of 2008. First quarter 2008 results include $1.6 million of pre-tax other income related to the Visa IPO. Diluted earnings per share for the first half of 2008 would have still shown a 13.8% increase over 2007, if results were adjusted for the impact of revenue related to the Visa IPO. See Summary Financial Data for a reconciliation of the amounts.

Total assets were $2.7 billion at June 30, 2008, up $444.1 million or 19.6% from June 30, 2007. Total loans were $1.7 billion at June 30, 2008, representing a 21.4% increase from the prior year. Total deposits at June 30, 2008, were $2.1 billion, up 21.1% from June 30, 2007.

The growth comparisons to prior periods were impacted by the May 9, 2008, acquisition of Sleepy Hollow Bancorp. Immediately following the acquisition, the Sleepy Hollow Bank was successfully merged into our Mahopac National Bank subsidiary. Total assets acquired from Sleepy Hollow totaled $269.2 million, and

included $151.2 million in loans, $46.9 million in securities, and resulted in $18.3 million of goodwill. Total deposits in Sleepy Hollow Bank’s five Westchester County, NY Branches were $229.0 million at the time of the acquisition. The total impact of the Sleepy Hollow transaction on the Company’s net income for the period was immaterial.

Mr. Romaine commented, “It is extremely encouraging that asset quality trends remain strong while achieving solid growth in our loan portfolio. As might be expected in the current economic climate, we have seen a modest increase in net-charge-offs and nonperforming assets. Nevertheless, our ratios for net charge-offs and nonperforming assets continue to compare favorably to our peers.” Annualized net charge-offs for the first six months of the year represented 0.14% of average loans (up from 0.10% for the first half of June 2007), which compares to a peer ratio of 0.21% according to the most recent data available from the Federal Reserve Board. Nonperforming assets represented 0.47% of total assets as of June 30, 2008 (up from 0.39% at June 30, 2007), which compares to a Federal Reserve peer ratio of 1.26%. Mr. Romaine added, “As a result of our disciplined underwriting, we have avoided exposure to sub-prime loans, while the combined nonperforming loan balances in our construction and home equity lending portfolios represents less than 0.03% of total loans.”

The Company’s securities portfolio totaled $840.0 million at June 30, 2008, compared to $714.8 million at June 30, 2007. The portfolio is comprised primarily of mortgage-backed securities, obligations U.S. Government sponsored agencies, and obligations of states and political subdivisions. The Company has no investments in preferred stock of U.S. Government sponsored agencies, no investments in pools of Trust Preferred securities, and no securities where management has deemed impairment to be other than temporary. The after-tax unrealized loss on the available-for-sale securities was $4.2 million at June 30, 2008, compared to $6.7 million at June 30, 2007.

Balance sheet growth contributed to improved net interest income in 2008, for both the second quarter and year to date. Net interest income of $21.9 million in the second quarter was up 18.5% over the same period in 2007. For the year to date period, net interest income was $41.7 million, up 15.8% from the same period last year. Net interest income also benefited from an improved net interest margin, which was 3.77% in the second quarter of 2008, compared to 3.66% in the second quarter of 2007. For the first six months of 2008, the net interest margin was 3.73%, compared to 3.61% for the first six months of 2007.

Noninterest income for the second quarter of 2008 was $11.6 million, up 7.0% from the same period in 2007. Quarterly for results for June 2008 included $219,000 in net mark-to-market gain on securities and liabilities carried at fair value, compared to a net mark-to-market loss of $600,000 for the second quarter of 2007. For the year to date period, non-interest income was $24.1 million, up 13.3% from the six months ended June 30, 2007. Improvement during the first six months of 2008 benefited from the $1.6 million in pre-tax gains related to the previously mentioned Visa IPO. Key fee income categories showed growth over the first six months of 2007 with investment services income up 3.3%; insurance revenues up 3.5%; and service charges on deposit accounts up 5.6%.

Noninterest expenses for the second quarter of 2008 were $21.8 million, up 10.6% from the same period last year. For the year to date period, noninterest expenses were $42.1 million in 2008, an increase of 8.7% from the same period in 2007. The increase in both the current quarter and year to date periods is largely in the salary and wages and occupancy expense categories. These expenses were directly impacted by the Sleepy Hollow acquisition with the addition of five staffed branches. For comparison purposes, growth in noninterest expense during the first quarter of 2008 (which did not include Sleepy Hollow Branches) was 6.7% over the prior year.

Tompkins Financial Corporation operates 45 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)

	As of 06/30/2008			As of 12/31/2007
ASSETS
Cash and noninterest bearing balances due from banks	$	51,028		$	46,705
Interest bearing balances due from banks		3,910			3,154
Federal funds sold		172			0
Trading securities, at fair value		40,085			60,135
Available-for-sale securities, at fair value		751,030			639,148
Held-to-maturity securities, fair value of $49,523 at June 30, 2008, and $50,297 at December 31, 2007		48,861			49,593
Loans and leases, net of unearned income and deferred costs and fees		1,652,831			1,440,122
Less: Allowance for loan/lease losses		16,835			14,607
Net Loans and Leases		1,635,996			1,425,515
Bank premises and equipment, net		47,687			44,811
Corporate owned life insurance		34,001			29,821
Goodwill		41,437			22,894
Other intangible assets		5,610			3,497
Accrued interest and other assets		45,379			34,186
Total Assets	$	2,705,196		$	2,359,459
LIABILITIES, MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES AND SHAREHOLDERS’ EQUITY
Deposits:
Interest bearing:
Checking, savings and money market	$	923,704		$	741,836
Time		691,485			585,142
Noninterest bearing		442,055			393,848
Total Deposits		2,057,244			1,720,826
Federal funds purchased and securities sold under agreements to repurchase (Valued at fair value: $15,560 at June 30, 2008, and $15,553 at December 31, 2007.		203,687			195,447
Other borrowings (Valued at fair value: $10,747 at June 30, 2008 and $10,795 at December 31, 2007.		192,638			210,862
Other liabilities		42,290			33,677
Total Liabilities	$	2,495,859		$	2,160,812
Minority interest in consolidated subsidiaries		6,042			1,452
Shareholders’ equity:
Common stock - par value $.10 per share: Authorized 15,000,000 shares; Issued: 9,695,193 at June 30, 2008; and 9,615,430 at December 31, 2007.		970			962
Additional paid-in capital		151,318			147,657
Retained earnings		65,151			57,255
Accumulated other comprehensive loss		(12,212	)		(6,900	)
Treasury stock, at cost, 73,408 shares at June 30, 2008, and 70,896 shares at December 31, 2007.		(1,932	)		(1,779	)
Total Shareholders’ Equity	$	203,295		$	197,195
Total Liabilities, Minority Interest in Consolidated Subsidiaries And Shareholders’ Equity	$	2,705,196		$	2,359,459

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

(In thousands, except per share data)	Three months ended						Six months ended
	06/30/2008			06/30/2007			06/30/2008			06/30/2007
INTEREST AND DIVIDEND INCOME
Loans	$	25,065		$	24,298		$	49,478		$	47,697
Balances due from banks		27			59			104			154
Federal funds sold		55			107			75			203
Trading securities		467			607			1,093			1,176
Available-for-sale securities		8,473			7,548			16,554			14,792
Held-to-maturity securities		459			527			934			1,063
Total Interest and Dividend Income		34,546			33,146			68,238			65,085
INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more		2,285			4,125			5,081			8,544
Other deposits		6,394			7,696			13,556			15,123
Federal funds purchased and securities sold under agreements to repurchase		1,986			2,037			4,022			4,000
Other borrowings		1,971			798			3,836			1,366
Total Interest Expense		12,636			14,656			26,495			29,033
Net Interest Income		21,910			18,490			41,743			36,052
Less: Provision for loan/lease losses		1,183			192			1,808			663
Net Interest Income After Provision for Loan/Lease Losses		20,727			18,298			39,935			35,389
NONINTEREST INCOME
Investment services income		3,568			3,538			7,237			7,008
Insurance commissions and fees		2,936			2,814			5,726			5,530
Service charges on deposit accounts		2,467			2,805			4,992			4,728
Card services income		979			905			1,781			1,702
Other service charges		575			639			1,196			1,298
Mark-to-market loss on trading securities		(670	)		(577	)		(375	)		(125	)
Mark-to-market gain (loss) on liabilities held at fair value		889			(23	)		41			(23	)
Increase in cash surrender value of corporate owned life insurance		352			283			689			556
Gains on sale of loans		44			42			41			97
Other income		254			392			2,335			469
Net realized gain (loss) on available-for-sale securities		159			(17	)		406			6
Total Noninterest Income		11,553			10,801			24,069			21,246
NONINTEREST EXPENSES
Salary and wages		9,787			8,770			19,157			17,572
Pension and other employee benefits		2,484			2,611			5,179			5,114
Net occupancy expense of bank premises		1,747			1,543			3,367			3,048
Furniture and fixture expense		1,153			999			2,077			1,946
Marketing expense		876			544			1,438			1,180
Professional fees		738			910			1,366			1,560
Software licenses and maintenance		780			503			1,388			1,003
Cardholder expense		197			256			491			491
Amortization of intangible assets		214			162			362			343
Other operating expense		3,782			3,376			7,314			6,515
Total Noninterest Expenses		21,758			19,674			42,139			38,772
Income Before Income Tax Expense and Minority Interest in Consolidated Subsidiaries		10,522			9,425			21,865			17,863
Minority interest in consolidated subsidiaries		115			33			147			65
Income Tax Expense		3,288			3,031			7,091			5,657
Net Income	$	7,119		$	6,361		$	14,627		$	12,141
Basic Earnings Per Share	$	0.74		$	0.65		$	1.52		$	1.24
Diluted Earnings Per Share	$	0.73		$	0.65		$	1.50		$	1.23

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

(In thousands, except per share data)	Quarter-Ended										Year-Ended
	June-08		Mar-08		Dec-07		Sept-07		June-07		Dec-07
Period End Balance Sheet
Securities	$	839,976	$	811,627	$	748,876	$	751,242	$	714,760	$	748,876
Loans and leases, net of unearned income and deferred costs and fees		1,652,831		1,455,570		1,440,122		1,383,928		1,361,415		1,440,122
Allowance for loan/lease losses		16,835		14,781		14,607		14,410		14,357		14,607
Total assets		2,705,196		2,450,413		2,359,459		2,316,862		2,261,057		2,359,459
Total deposits		2,057,244		1,841,045		1,720,826		1,725,728		1,698,143		1,720,826
Federal funds purchased and securities sold under agreements to repurchase		203,687		210,079		195,447		196,085		188,939		195,447
Other borrowings		192,638		156,439		210,862		148,213		156,214		210,862
Shareholders’ Equity		203,295		209,688		197,195		189,808		185,049		197,195
Average Balance Sheet
Average earning assets	$	2,408,901	$	2,233,023	$	2,154,891	$	2,097,965	$	2,092,773	$	2,105,581
Average assets		2,602,914		2,405,040		2,318,558		2,259,801		2,251,474		2,266,224
Average interest-bearing liabilities		1,953,254		1,796,953		1,717,843		1,674,654		1,681,831		1,686,559
Average equity		209,403		202,195		191,221		185,384		188,399		188,482
Share data
Weighted average shares outstanding (basic)		9,650,917		9,602,478		9,560,649		9,627,356		9,756,118		9,696,724
Weighted average shares outstanding (diluted)		9,747,914		9,696,550		9,657,751		9,699,091		9,823,184		9,781,789
Period-end shares outstanding		9,662,547		9,629,693		9,582,783		9,580,034		9,673,858		9,582,783
Book value per share	$	21.04	$	21.78	$	20.58	$	19.81	$	19.13	$	20.58
Income Statement
Net interest income	$	21,910	$	19,833	$	19,473	$	18,503	$	18,490	$	74,029
Provision for loan/lease losses		1,183		625		479		387		192		1,529
Noninterest income		11,553		12,516		11,221		11,584		10,801		44,049
Noninterest expense		21,758		20,381		19,588		19,699		19,674		78,056
Minority interest in consolidated subsidiaries		115		33		32		33		33		131
Income tax expense		3,288		3,802		3,171		3,163		3,031		11,991
Net income		7,119		7,508		7,424		6,805		6,361		26,371
Basic earnings per share	$	0.74	$	0.78	$	0.78	$	0.71	$	0.65	$	2.72
Diluted earnings per share	$	0.73	$	0.77	$	0.77	$	0.70	$	0.65	$	2.70
Asset Quality
Net charge-offs	$	615	$	451	$	282	$	334	$	358	$	1,250
Nonaccrual loans and leases		10,552		9,008		8,890		7,869		8,474		8,890
Loans and leases 90 days past due and accruing		1,422		53		312		370		2		312
Troubled debt restructurings not included above		135		139		145		150		0		145
Total nonperforming loans and leases		12,109		9,200		9,347		8,239		8,476		9,347
OREO		481		5		5		345		362		5
Nonperforming assets		12,590		9,205		9,352		8,584		8,838		9,352

Tompkins Financial Corporation – Summary Financial Data (Unaudited)

	Quarter-Ended															Year-Ended
	June-08			Mar-08			Dec-07			Sept-07			June-07			Dec-07
Credit Quality
Net loan and lease losses/ average loans and leases *		0.16	%		0.13	%		0.08	%		0.10	%		0.11	%		0.09	%
Nonperforming loans and leases/loans and leases		0.73	%		0.63	%		0.65	%		0.60	%		0.62	%		0.65	%
Nonperforming assets/assets		0.47	%		0.38	%		0.40	%		0.37	%		0.39	%		0.40	%
Allowance/nonperforming loans and leases		139.03	%		160.67	%		156.27	%		174.90	%		169.38	%		156.27	%
Allowance/loans and leases		1.02	%		1.02	%		1.01	%		1.04	%		1.05	%		1.01	%
Capital Adequacy (period-end)
Tier I capital / average assets		7.1	%		7.9	%		7.9	%		7.9	%		7.9	%		7.9	%
Total capital / risk-weighted assets		11.1	%		12.4	%		12.2	%		12.4	%		12.6	%		12.2	%
Profitability
Return on average assets *		1.10	%		1.26	%		1.27	%		1.19	%		1.13	%		1.16	%
Return on average equity *		13.67	%		14.93	%		15.40	%		14.56	%		13.54	%		13.99	%
Net interest margin (TE) *		3.77	%		3.68	%		3.70	%		3.61	%		3.66	%		3.63	%

* Quarterly ratios have been annualized

	Quarter-ended											Year-Ended
Non-GAAP Disclosure	June-08		Mar-08			Dec-07		Sept-07		June-07		Dec-07
Reported net income		7,119		7,508			7,424		6,805		6,361		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		1,229
Adjusted net income		7,119		6,525			7,941		7,517		6,361		27,600
Weighted average shares outstanding (diluted)		9,747,914		9,696,550			9,657,751		9,699,091		9,823,184		9,781,789
Adjusted diluted earnings per share		.73		.67			.82		.78		.65		2.82

	Year-to-date period ended
Non-GAAP Disclosure	June-08			June-07
Reported net income		14,627			12,141
Adjustments:
Proceeds and accrual adjustment from VISA IPO (after-tax)		(983	)
Subtotal adjustments		(983	)		0
Adjusted net income		13,644			12,141
Weighted average shares outstanding (diluted)		9,722,233			9,885,249
Adjusted diluted earnings per share		1.40			1.23