Tompkins Financial (TMP) 8-K Submission of Matters to a Vote of Security Holders

Tompkins Financial 8-K

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 20, 2011

Tompkins Financial Corporation Reports Record Earnings and Increased Dividend

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

Tompkins Financial Corporation reported record net income of $9.4 million for the second quarter of 2011, an increase of 4.1% over the $9.0 million reported for the same period in 2010.  Diluted earnings per share were $0.85 for the second quarter of 2011, a 2.4% increase over the $0.83 reported for the second quarter of 2010.

For the six months ended June 30, 2011, net income was $18.2 million compared to $17.4 million for the same period prior year.  Diluted earnings per share totaled $1.65 for the first six months of 2011, an increase of 2.5% over the $1.61 reported for the first six months of 2010.

Selected highlights for the second quarter and year-to-date period included:

§ Diluted earnings per share as of June 30, 2011, reflect the best quarter and year-to-date results in Company history.

§ The Company’s board of directors approved a cash dividend of $0.36 per share to be paid in the third quarter of 2011, a 5.9% increase from the immediately preceding quarter.  The increase follows a trend of 22 consecutive years of increases in annual cash dividends paid to shareholders through the 2010 calendar year.

§ Total revenue was $40.0 million for the second quarter of 2011 and $80.0 million for the first six months of 2011, up 1.3% and 1.6%, respectively, over the same periods in 2010.

§ Total loans were $1.9 billion at June 30, 2011, up $20.4 million or 1.1% from June 30, 2010.

§ Total deposits were $2.6 billion at quarter end, up 4.5% from the same period in 2010.  Noninterest-bearing deposits totaled $536.3 million at June 30, 2011, an increase of 13.1% over the same period in 2010.

§ The net interest margin for the second quarter of 2011 was 3.77%, compared to 3.78% for the first quarter of 2011, and 3.91% for the second quarter of 2010.  Despite the decline in net interest margin over the past 12 months, net interest income of $28.0 million for the second quarter of 2011 was down less than 1.0% when compared to the same quarter last year.  Growth in earning assets, primarily in the securities portfolio, helped mitigate the earnings impact of the decline in margin.

§ Noninterest income was up 6.0% for the quarter and up 8.2% for the year-to-date period.  Fee income from investment services, insurance, and card services were all up for both the quarter and year-to-date periods, while service charges on deposit accounts declined.  The lower level of service charges on deposit accounts was impacted by regulatory changes that went into effect in the third quarter of 2010.

§ Noninterest expense for the second quarter of 2011 was $25.2 million, up 2.6% over the same period prior year. Noninterest expense for the year-to-date period was $50.4 million, an increase of 2.8% over the first six months of 2010.

§ Favorable trends in net charge-offs and nonperforming assets contributed to a decline in the provision for loan and lease losses from $1.4 million in the second quarter of 2010, to $1.0 million in the second quarter of 2011.

§ Nonperforming assets declined for the third consecutive quarter, although nonperforming assets levels remain above the totals reported at June 30, 2010. The ratio of nonperforming assets to total assets of 1.30% at June 30, 2011, continues to be well below the most recent peer averages published by the Federal Reserve.  The Company continues to receive regular payments on over 60% of loan balances that we categorize as nonperforming.

§ Net charge-offs declined for the second consecutive quarter.  Although net charge-offs for the quarter of $679,000 are up over the $244,000 recorded for the same quarter last year, they remain well below the most recent peer averages published by the Federal Reserve.

§ The Company’s allowance for loan and lease losses totaled $28.4 million at June 30, 2011, which represented 1.48% of total loans, compared to $27.8 million and 1.46% at December 31, 2010, and $26.5 million and 1.40% at June 30, 2010.  The allowance for loan and lease losses coverage of nonperforming loans improved during the most recent quarter to 69.23% up from 61.46% at December 31, 2010, and 68.61% at June 30, 2010.

§ Capital levels showed continued growth during the quarter and ratios remain well above the regulatory well capitalized minimums.  Tier 1 capital as a percentage of average assets was 8.39%; and the ratio of total capital to risk-weighted assets was 13.98%.  These ratios are up from 8.02% and 13.42%, respectively at December 31, 2010.

Stephen S. Romaine, President and CEO stated, “We are pleased to report that Tompkins Financial has achieved record financial performance through the first half of 2011. We are proud of this achievement as well as our improving asset quality trends. This performance during these trying economic times shows the strength of our brand of community banking.”

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 March 31, 2011, 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
ASSETS	06/30/2011			12/31/2010
Cash and noninterest bearing balances due from banks	$	49,576		$	47,339
Interest bearing balances due from banks		1,803			2,226
Money market funds		100			100
Cash and Cash Equivalents		51,479			49,665
Trading securities, at fair value		21,102			22,837
Available-for-sale securities, at fair value		1,087,700			1,039,608
Held-to-maturity securities, fair value of $30,439 at June 30, 2011, and $56,064
at December 31, 2010		29,761			54,973
Loans and leases, net of unearned income and deferred costs and fees		1,920,716			1,910,358
Less:  Allowance for loan and lease losses		28,361			27,832
Net Loans and Leases		1,892,355			1,882,526
Federal Home Loan Bank stock and Federal Reserve Bank stock		18,800			21,985
Bank premises and equipment, net		44,749			46,103
Corporate owned life insurance		42,299			40,024
Goodwill		44,032			41,649
Other intangible assets, net		4,470			4,207
Accrued interest and other assets		50,851			56,766
Total Assets	$	3,287,598		$	3,260,343
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		1,320,669			1,230,815
Time		715,062			741,829
Noninterest bearing		536,277			523,229
Total Deposits		2,572,008			2,495,873
Federal funds purchased and securities sold under agreements to repurchase		178,545			183,609
Other borrowings, including certain amounts at fair value of $11,656 at June 30, 2011
and $11,629 at December 31, 2010		172,643			244,193
Trust preferred debentures		25,062			25,060
Other liabilities		39,280			38,200
Total Liabilities	$	2,987,538		$	2,986,935
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
11,087,804 at June 30, 2011; and 10,934,385 at December 31, 2010		1,109			1,093
Additional paid-in capital		204,284			198,114
Retained earnings		87,188			76,446
Accumulated other comprehensive income (loss)		8,375			(1,260	)
Treasury stock, at cost – 90,588 shares at June 30, 2011, and 92,025 shares
at December 31, 2010		(2,413	)		(2,437	)
Total Tompkins Financial Corporation Shareholders’ Equity		298,543			271,956
Noncontrolling interests		1,517			1,452
Total Equity	$	300,060		$	273,408
Total Liabilities and Equity	$	3,287,598		$	3,260,343

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended						Six Months Ended
(In thousands, except per share data) (Unaudited)	06/30/2011			06/30/2010			06/30/2011			06/30/2010
INTEREST AND DIVIDEND INCOME
Loans	$	25,883		$	26,750		$	51,584		$	53,369
Due from banks		4			10			9			22
Federal funds sold		1			6			5			9
Trading securities		220			278			455			588
Available-for-sale securities		7,896			8,794			15,583			17,793
Held-to-maturity securities		331			394			696			802
Federal Home Loan Bank stock and Federal Reserve Bank stock		219			218			509			501
Total Interest and Dividend Income		34,554			36,450			68,841			73,084
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		868			1,146			1,717			2,324
Other deposits		2,565			3,502			5,190			7,329
Federal funds purchased and securities sold under agreements to repurchase		1,248			1,308			2,540			2,733
Trust preferred debentures		388			436			792			803
Other borrowings		1,533			1,952			3,108			3,845
Total Interest Expense		6,602			8,344			13,347			17,034
Net Interest Income		27,952			28,106			55,494			56,050
Less:  Provision for loan and lease losses		1,005			1,408			2,915			3,591
Net Interest Income After Provision for Loan and Lease Losses		26,947			26,698			52,579			52,459
NONINTEREST INCOME
Investment services income		3,825			3,604			7,665			7,341
Insurance commissions and fees		3,459			3,191			6,833			6,357
Service charges on deposit accounts		2,107			2,430			4,091			4,487
Card services income		1,269			1,067			2,514			2,041
Mark-to-market gain on trading securities		165			291			115			381
Mark-to-market (loss) on liabilities held at fair value		(202	)		(490	)		(27	)		(618	)
Other income		1,390			1,180			3,219			2,486
Net gain on securities transactions		0			58			95			176
Total Noninterest Income		12,013			11,331			24,505			22,651
NONINTEREST EXPENSES
Salaries and wages		11,211			10,669			22,036			21,008
Pension and other employee benefits		3,657			3,442			7,688			7,354
Net occupancy expense of premises		1,706			1,725			3,601			3,606
Furniture and fixture expense		1,199			1,143			2,237			2,326
FDIC insurance		531			857			1,582			1,769
Amortization of intangible assets		146			199			316			401
Other operating expense		6,713			6,481			12,920			12,547
Total Noninterest Expenses		25,163			24,516			50,380			49,011
Income Before Income Tax Expense		13,797			13,513			26,704			26,099
Income Tax Expense		4,364			4,447			8,466			8,585
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		9,433			9,066			18,238			17,514
Less:  Net income attributable to noncontrolling interests		33			33			65			65
Net Income Attributable to Tompkins Financial Corporation	$	9,400		$	9,033		$	18,173		$	17,449
Basic Earnings Per Share	$	0.86		$	0.84		$	1.66		$	1.62
Diluted Earnings Per Share	$	0.85		$	0.83		$	1.65		$	1.61

Average Consolidated Balance Sheet and Net Interest Analysis

	Quarter Ended								Year to Date Period Ended								Year to Date Period Ended
	June 30, 2011								June 30, 2011								June 30, 2010
	Average								Average								Average
	Balance					Average			Balance					Average			Balance					Average
(Dollar amounts in thousands)	(QTD)		Interest			Yield/Rate			(YTD)		Interest			Yield/Rate			(YTD)		Interest			Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	10,352	$	4			0.15	%	$	13,235	$	9			0.14	%	$	36,979	$	22			0.12	%
Money market funds		100		-			0.00	%		100		-			0.00	%		100		-			0.00	%
Securities (1)
U.S. Government securities		963,145		7,227			3.01	%		945,956		14,215			3.03	%		835,570		16,248			3.92	%
Trading securities		21,569		220			4.09	%		22,053		455			4.16	%		30,218		588			3.92	%
State and municipal (2)		103,066		1,364			5.31	%		107,672		2,811			5.26	%		105,181		3,109			5.96	%
Other securities (2)		14,348		168			4.70	%		14,790		348			4.74	%		18,171		442			4.91	%
Total securities		1,102,128		8,979			3.27	%		1,090,471		17,829			3.30	%		989,140		20,387			4.16	%
Federal Funds Sold		4,111		1			0.10	%		6,426		5			0.16	%		11,256		9			0.16	%
FHLBNY and FRB stock		18,092		219			4.86	%		18,505		509			5.55	%		19,514		501			5.18	%
Loans, net of unearned income (3)
Real estate		1,384,792		18,550			5.37	%		1,376,735		36,978			5.42	%		1,332,798		37,856			5.73	%
Commercial loans (2)		451,648		6,153			5.46	%		454,155		12,176			5.41	%		465,834		12,544			5.43	%
Consumer loans		68,382		1,189			6.97	%		70,446		2,443			6.99	%		82,809		2,862			6.97	%
Direct lease financing		7,889		115			5.85	%		8,318		246			5.96	%		11,404		342			6.05	%
Total loans, net of unearned income		1,912,711		26,007			5.45	%		1,909,654		51,843			5.47	%		1,892,845		53,604			5.71	%
Total interest-earning assets		3,047,494		35,210			4.63	%		3,038,391		70,195			4.66	%		2,949,834		74,523			5.09	%
Other assets		224,401								223,893								227,459
Total assets		3,271,895								3,262,284								3,177,293
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings,  & money market		1,355,790		1,284			0.38	%		1,332,585		2,455			0.37	%		1,229,835		3,395			0.56	%
Time deposits > $100,000		323,435		868			1.08	%		316,628		1,717			1.09	%		338,998		2,324			1.38	%
Time deposits < $100,000		402,329		1,280			1.28	%		413,119		2,714			1.32	%		430,141		3,657			1.71	%
Brokered time deposits < $100,000		699		1			0.57	%		3,372		21			1.26	%		32,326		277			1.73	%
Total interest-bearing deposits		2,082,253		3,433			0.66	%		2,065,704		6,907			0.67	%		2,031,300		9,653			0.96	%
Federal funds purchased & securities sold under agreements
to repurchase		171,341		1,248			2.92	%		178,359		2,540			2.87	%		182,502		2,733			3.02	%
Other borrowings		153,900		1,533			4.00	%		162,731		3,108			3.85	%		194,784		3,845			3.98	%
Trust preferred debentures		25,062		388			6.21	%		25,061		792			6.37	%		25,057		803			6.46	%
Total interest-bearing liabilities		2,432,556		6,602			1.09	%		2,431,855		13,347			1.11	%		2,433,643		17,034			1.41	%
Noninterest bearing deposits		514,977								511,345								448,232
Accrued expenses and other liabilities		36,021								36,242								40,498
Total liabilities		2,983,554								2,979,442								2,922,373
Tompkins Financial Corporation Shareholders’ equity		286,839								281,357								253,436
Noncontrolling interest		1,502								1,485								1,484
Total equity		288,341								282,842								254,920
Total liabilities and equity	$	3,271,895							$	3,262,284							$	3,177,293
Interest rate spread							3.54	%							3.55	%							3.68	%
Net interest income/margin on earning assets				28,608			3.77	%				56,848			3.77	%				57,489			3.93	%
Tax Equivalent Adjustment				(656	)							(1,354	)							(1,439	)
Net interest income per consolidated financial statements			$	27,952							$	55,494							$	56,050

(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
		Jun-11		Mar-11		Dec-10		Sep-10		Jun-10		Dec-10
Period End Balance Sheet
Securities	$	1,138,563	$	1,121,443	$	1,117,418	$	1,053,038	$	1,023,220	$	1,117,418
Loans and leases, net of unearned income and deferred costs and fees		1,920,716		1,914,344		1,910,358		1,914,064		1,900,303		1,910,358
Allowance for loan and lease losses		28,361		28,035		27,832		28,684		26,530		27,832
Total assets		3,287,598		3,278,894		3,260,343		3,247,111		3,161,648		3,260,343
Total deposits		2,572,008		2,612,517		2,495,873		2,528,528		2,460,223		2,495,873
Federal funds purchased and securities sold under agreements to repurchase		178,545		182,009		183,609		191,596		175,336		183,609
Other borrowings		172,643		140,353		244,193		182,779		189,561		244,193
Trust preferred debentures		25,062		25,061		25,060		25,059		25,058		25,060
Shareholders' equity		300,060		282,237		273,408		276,495		268,683		273,408
Average Balance Sheet
Average earning assets	$	3,047,494	$	3,029,188	$	3,010,361	$	2,937,795	$	2,953,673	$	2,962,056
Average assets		3,271,895		3,252,549		3,243,822		3,168,478		3,181,476		3,191,840
Average interest-bearing liabilities		2,432,556		2,431,145		2,424,998		2,372,630		2,424,245		2,416,085
Average equity		288,341		277,283		280,051		273,517		260,197		265,943
Share data
Weighted average shares outstanding (basic)		10,974,616		10,905,197		10,888,138		10,845,106		10,818,218		10,812,502
Weighted average shares outstanding (diluted)		11,016,515		10,955,430		10,936,042		10,893,642		10,876,421		10,864,450
Period-end shares outstanding		11,051,894		10,952,410		10,898,475		10,878,813		10,830,001		10,898,475
Book value per share		27.15		25.77		25.09		25.42		24.81		25.09
Income Statement
Net interest income	$	27,952	$	27,542	$	27,861	$	27,864	$	28,106	$	111,775
Provision for loan/lease losses		1,005		1,910		1,433		3,483		1,408		8,507
Noninterest income		12,013		12,492		12,281		11,227		11,331		46,159
Noninterest expense		25,163		25,216		25,183		24,852		24,516		99,045
Income tax expense		4,364		4,102		4,602		3,233		4,447		16,420
Net income attributable to Tompkins Financial Corporation		9,400		8,773		8,892		7,490		9,033		33,831
Noncontrolling interests		33		33		32		33		33		131
Basic earnings per share	$	0.86	$	0.80	$	0.82	$	0.69	$	0.84	$	3.13
Diluted earnings per share	$	0.85	$	0.80	$	0.81	$	0.69	$	0.83	$	3.11
Asset Quality
Net charge-offs		679		1,707		2,285		1,329		244		5,025
Nonaccrual loans and leases		38,457		39,902		41,501		48,966		33,645		41,501
Loans and leases 90 days past due and accruing		2,512		1,266		1,217		1,737		1,758		1,217
Troubled debt restructurings not included above		0		2,411		2,564		3,264		3,264		2,564
Total nonperforming loans and leases		40,969		43,579		45,282		53,967		38,667		45,282
OREO		1,742		2,270		1,255		1,845		1,638		1,255
Nonperforming assets		42,711		45,849		46,537		55,812		40,305		46,537

RATIO ANALYSIS	Quarter-Ended					Year-Ended
Credit Quality	Jun-11	Mar-11	Dec-10	Sep-10	Jun-10		Dec-10
Net loan and lease losses/ average loans
and leases *	0.14%	0.36%	0.48%	0.28%	0.05%		0.26%
Nonperforming loans and leases/loans and leases	2.13%	2.28%	2.37%	2.82%	2.03%		2.37%
Nonperforming assets/assets	1.30%	1.40%	1.43%	1.72%	1.27%		1.43%
Allowance/nonperforming loans and leases	69.23%	64.33%	61.46%	53.15%	68.61%		61.46%
Allowance/loans and leases	1.48%	1.46%	1.46%	1.50%	1.40%		1.46%
Capital Adequacy (period-end)
Tier I capital / average assets	8.39%	8.22%	8.02%	8.01%	7.77%		8.02%
Total capital / risk-weighted assets	13.98%	13.66%	13.42%	13.14%	13.10%		13.42%
Profitability
Return on average assets *	1.15%	1.09%	1.09%	0.94%	1.14%		1.06%
Return on average equity *	13.08%	12.83%	12.60%	10.86%	13.92%		12.72%
Net interest margin (TE) *	3.77%	3.78%	3.75%	3.85%	3.91%		3.86%
* Quarterly ratios have been annualized