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

Tompkins Financial Corporation 8-K

EXHIBIT 99.1

For more information contact:

Stephen S. Romaine, President & CEO

Francis M. Fetsko, Executive VP, CFO & COO

Tompkins Financial Corporation (888)503-5753

For Immediate Release

Friday, January 27, 2017

Tompkins Financial Corporation Reports Record Fourth Quarter and Full Year Earnings

ITHACA, NY – Tompkins Financial Corporation (NYSEMKT:TMP)

Tompkins Financial Corporation reported record diluted earnings per share of $0.99 for the fourth quarter of 2016, a 7.6% increase from the $0.92 reported in the fourth quarter of 2015. Net income for the fourth quarter of 2016 was $15.1 million, up 9.1% compared to the $13.9 million reported for the same period in 2015.

President and CEO, Stephen S. Romaine said "We are very pleased to end 2016 with the best fourth quarter in our Company’s long history. Fourth quarter performance reflects the ongoing success of our business development efforts that have produced solid growth in net loan and deposit balances, which are up 12.9% and 5.2%, respectively over 2015. Growth in these key balance sheet categories gives us very good momentum as we head into 2017.”

Full year results reflect the best earnings per share in Company history. For the year ended December 31, 2016, diluted earnings per share were $3.91, an increase of 1.0%, over the $3.87 per share reported in 2015. The record results for 2016 are especially noteworthy given that results for 2015 included a non-recurring curtailment gain of $3.6 million after tax ($0.24 per share) related to changes to the Company’s pension plan, which was recognized in the second quarter of 2015. Refer to the table of “NON-GAAP MEASURES” included in this press release for additional details. Full year and quarterly results for 2016 reflect the impact of the early adoption of Accounting Standards Update (ASU) 2016-09,Improvements to Employee Share-Based Payment Accounting,which is more fully described in Footnote 10 of this press release.

Selected highlights for fourth quarter:

• Net interest income of $46.4 million for the current quarter was up 6.8% compared to the fourth quarter of 2015

• Total loans of $4.3 billion at year end 2016 were up 12.9% over year end 2015

• Noninterest bearing deposit balances of $1.2 billion at year end 2016 are up 8.6% over year end 2015

• Nonperforming assets of $22.6 million at year end 2016, though up $3.3 million from the most recent prior quarter, reflect a decrease of 7.8% from year end 2015.

• During the quarter, the Company announced that it will redeem approximately $20.5 million of 7% Fixed Rate Trust Preferred securities, effective January 31, 2017. For purposes of calculating regulatory capital, these securities were not included as part of Tier 1 capital at year end 2016.

NET INTEREST INCOME

Net interest income of $46.4 million for the fourth quarter of 2016 increased by $2.9 million, or 6.8% compared to the same period in 2015. For the full year, net interest income was $180.6 million, up $12.3 million, or 7.3% from the same period in 2015.

Growth in net interest income was largely driven by $447.7 million of growth in average total loans since the fourth quarter of 2015, an increase of 12.1%. The loan growth was supported, in part, by a $212.7 million increase in average total deposits over the same period. The net interest margin was 3.30% in the fourth quarter, down from 3.31% for the most recent prior quarter, and 3.35% for the same quarter last year.

NONINTEREST INCOME

Noninterest income was $16.3 million for the fourth quarter of 2016, and was down $1.6 million or 8.9% compared to the same period in 2015. For the full year, noninterest income of $68.8 million is down from $71.9 million reported for 2015. Prior year-to-date results included net gains on the sale of other real estate owned of $946,000, which were higher by $860,000, when compared to the current year-to-date period. Fee based revenue for 2016 (including insurance, wealth management, and banking related fees), was relatively flat compared to the prior year.

NONINTEREST EXPENSE

Noninterest expense was $39.4 million for the fourth quarter of 2016, approximately flat, when compared to that same quarter in 2015. For the full year, noninterest expenses were $158.6 million in 2016, up $8.7 million, or 5.8% over 2015. The current full year results included $313,000 of expense related to the early termination of an FDIC loss share agreement, which was recognized in the third quarter of 2016; and $546,000 of deconversion expenses related to a core system conversion planned for 2017. The deconversion expenses include $306,000 of expenses that were recognized in the fourth quarter of 2016. Prior year noninterest expenses benefited from a $6.0 million (pretax) non-recurring curtailment gain (recognized in the second quarter of 2015) related to a change in the Company’s defined benefit pension plan.

ASSET QUALITY

Asset quality trends remained strong in the fourth quarter of 2016. Nonperforming assets were down $1.9 million or 7.8% compared to the fourth quarter in 2015; though they were up $3.3 million or 17.0% from the most recent prior quarter. Nonperforming assets represented 0.36% of total assets at December 31, 2016, compared to 0.32% at September 30, 2016, and 0.43% at December 31, 2015. Nonperforming asset levels continue to be well below the most recent Federal Reserve Board Peer Group Average1 of 0.77%.

The provision for loan and lease losses was $1.7 million for the fourth quarter of 2016, up from $1.5 million in the fourth quarter of 2015. Full year provision expense was $4.3 million in 2016, up from $2.9 million in 2015. The year-over-year increase in provision expense is primarily due to loan growth, as well as higher net recoveries in the prior period. Net charge-offs for 2016 were $571,000 compared to net recoveries of $62,000 reported in 2015.

The Company’s allowance for originated loan and lease losses totaled $35.6 million at December 31, 2016, and represented 0.92% of total originated loans and leases at December 31, 2016, compared to 0.95% at December 31, 2015. The total allowance represented 165.0% of total nonperforming loans and leases at December 31, 2016, up from 146.7% at December 31, 2015.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. The ratio Tier 1 capital to average assets of 8.41% at December 31, 2016, compared to 8.82% reported for December 31, 2015. Total capital to risk-weighted assets at December 31, 2016 was 12.22%, compared to 13.03% reported at December 31, 2015. Contributing to the decline in capital levels in the fourth quarter of 2016 was the exclusion from Tier I capital of $20.5 million in 7% Fixed Rate Trust preferred securities, which the Company plans to redeem in January 2017.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company serving the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania. Headquartered in Ithaca, NY, Tompkins Financial is parent to Tompkins Trust Company, Tompkins Bank of Castile, Tompkins Mahopac Bank, Tompkins VIST Bank, Tompkins Insurance Agencies, Inc., and offers wealth management services through Tompkins Financial Advisors. For more information on Tompkins Financial, visitwww.tompkinsfinancial.com.

"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.

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(In thousands, except share and per share data) (Unaudited)				As of		As of
ASSETS				12/31/2016		12/31/2015
Cash and noninterest bearing balances due from banks			$	62,074	$	56,261
Interest bearing balances due from banks				1,880		1,996
	Cash and Cash Equivalents			63,954		58,257
Trading securities, at fair value				0		7,368
Available-for-sale securities, at fair value (amortized cost of $1,352,845 at December 31,
	2016 and $1,390,255 at December 31, 2015)			1,429,538		1,385,684
Held-to-maturity securities, at amortized cost (fair value of $151,626 at December 31, 2016
	and $146,686 at December 31, 2015)			142,119		146,071
Originated loans and leases, net of unearned income and deferred costs and fees (2)				3,863,922		3,310,768
Acquired loans (3)				394,111		461,274
Less:  Allowance for loan and lease losses				35,755		32,004
	Net Loans and Leases			4,222,278		3,740,038
Federal Home Loan Bank and other stock				43,133		29,969
Bank premises and equipment, net				70,016		60,331
Corporate owned life insurance				77,905		75,792
Goodwill				92,623		91,792
Other intangible assets, net				11,349		12,448
Accrued interest and other assets				83,841		82,245
	Total Assets		$	6,236,756	$	5,689,995
LIABILITIES
Deposits:
	Interest bearing:
	Checking, savings and money market			2,518,318		2,401,519
	Time			870,788		855,133
	Noninterest bearing			1,236,033		1,138,654
	Total Deposits			4,625,139		4,395,306
Federal funds purchased and securities sold under agreements to repurchase				69,062		136,513
Other borrowings				884,815		536,285
Trust preferred debentures				37,681		37,509
Other liabilities				70,654		67,916
	Total Liabilities		$	5,687,351	$	5,173,529
EQUITY
Tompkins Financial Corporation shareholders' equity:
	Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
		15,171,816 at December 31, 2016; and 15,015,594 at December 31, 2015		1,517		1,502
	Additional paid-in capital			357,414		350,823
	Retained earnings			230,182		197,445
	Accumulated other comprehensive loss			(37,109)		(31,001)
	Treasury stock, at cost – 117,997 shares at December 31, 2016, and 116,126 shares
		at December 31, 2015		(4,051)		(3,755)
	Total Tompkins Financial Corporation Shareholders’ Equity			547,953		515,014
Noncontrolling interests				1,452		1,452
	Total Equity		$	549,405	$	516,466
	Total Liabilities and Equity		$	6,236,756	$	5,689,995

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended				Twelve Months Ended
(In thousands, except per share data) (Unaudited)		12/31/2016		12/31/2015		12/31/2016		12/31/2015
INTEREST AND DIVIDEND INCOME
Loans	$	44,252	$	39,966	$	169,630	$	154,636
Due from banks		1		1		6		4
Trading securities		0		82		220		352
Available-for-sale securities		6,348		7,306		27,846		29,525
Held-to-maturity securities		891		915		3,603		3,100
Federal Home Loan Bank and other stock		444		295		1,434		1,129
Total Interest and Dividend Income		51,936		48,565		202,739		188,746
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more		440		309		1,654		1,367
Other deposits		2,295		2,247		9,059		9,084
Federal funds purchased and securities sold under agreements to
repurchase		288		689		2,228		2,709
Trust preferred debentures		607		582		2,390		2,308
Other borrowings		1,932		1,301		6,772		4,897
Total Interest Expense		5,562		5,128		22,103		20,365
Net Interest Income		46,374		43,437		180,636		168,381
Less:  Provision for loan and lease losses		1,706		1,533		4,321		2,945
Net Interest Income After Provision for Loan and Lease Losses		44,668		41,904		176,315		165,436
NONINTEREST INCOME
Insurance commissions and fees		6,684		6,945		29,492		29,286
Investment services income		3,848		3,898		15,203		15,416
Service charges on deposit accounts		2,234		2,513		8,793		9,325
Card services income		2,078		1,993		8,058		7,837
Mark-to-market loss on trading securities		0		(89)		(182)		(295)
Mark-to-market gain on liabilities held at fair value		0		159		227		385
Other income		1,472		2,488		6,291		8,878
Gain on sale of available-for-sale securities		0		3		926		1,108
Total Noninterest Income		16,316		17,910		68,808		71,940
NONINTEREST EXPENSE
Salaries and wages		18,827		18,388		76,950		72,707
Pension and other employee benefits		5,061		5,182		20,496		16,025
Net occupancy expense of premises		3,328		3,009		12,521		12,312
Furniture and fixture expense		1,477		1,681		6,450		6,146
FDIC insurance		636		774		3,024		2,992
Amortization of intangible assets		518		510		2,090		2,013
Other operating expense		9,542		9,826		37,076		37,667
Total Noninterest Expenses		39,389		39,370		158,607		149,862
Income Before Income Tax Expense		21,595		20,444		86,516		87,514
Income Tax Expense		6,444		6,557		27,045		28,962
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		15,151		13,887		59,471		58,552
Less:  Net income attributable to noncontrolling interests		33		33		131		131
Net Income Attributable to Tompkins Financial Corporation	$	15,118	$	13,854	$	59,340	$	58,421
Basic Earnings Per Share	$	1.00	$	0.93	$	3.94	$	3.91
Diluted Earnings Per Share	$	0.99	$	0.92	$	3.91	$	3.87

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)

				Quarter Ended					Year to Date Period Ended					Year to Date Period Ended
				December 31, 2016					December 31, 2016					December 31, 2015
				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		$	2,172	$	1	0.37%	$	2,019	$	6	0.30%	$	1,812	$	4	0.22%
	Securities (4)
		U.S. Government securities		1,433,303		6,711	1.86%		1,443,894		29,318	2.03%		1,441,420		30,500	2.12%
		Trading securities		-		-	0.00%		4,893		220	4.50%		8,231		352	4.28%
		State and municipal (5)		98,029		821	3.33%		97,937		3,309	3.38%		88,504		3,308	3.74%
		Other securities (5)		3,622		31	3.40%		3,645		123	3.37%		3,785		121	3.20%
		Total securities		1,534,954		7,563	1.96%		1,550,369		32,970	2.13%		1,541,940		34,281	2.22%
	FHLBNY and FRB stock			34,792		444	5.08%		32,528		1,434	4.41%		24,046		1,129	4.70%
	Total loans and leases, net of unearned income (5)(6)			4,135,203		44,959	4.32%		3,957,221		172,443	4.36%		3,531,945		157,222	4.45%
	Total interest-earning assets			5,707,121		52,967	3.69%		5,542,137		206,853	3.73%		5,099,743		192,636	3.78%
Other assets				367,852					355,943					355,471
	Total assets			6,074,973					5,898,080					5,455,214
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings,  & money market		2,573,237		1,049	0.16%		2,529,009		4,008	0.16%		2,363,087		3,821	0.16%
		Time deposits		855,651		1,686	0.78%		871,595		6,705	0.77%		895,391		6,630	0.74%
		Total interest-bearing deposits		3,428,888		2,735	0.32%		3,400,604		10,713	0.32%		3,258,478		10,451	0.32%
Federal funds purchased & securities sold under
		agreements to repurchase		74,107		288	1.55%		99,622		2,228	2.24%		137,917		2,709	1.96%
Other borrowings				696,479		1,932	1.10%		616,560		6,772	1.10%		417,737		4,897	1.17%
Trust preferred debentures				37,652		607	6.42%		37,588		2,390	6.36%		37,417		2,308	6.17%
	Total interest-bearing liabilities			4,237,126		5,562	0.52%		4,154,374		22,103	0.53%		3,851,549		20,365	0.53%
Noninterest bearing deposits				1,211,707					1,130,406					1,029,545
Accrued expenses and other liabilities				67,034					66,243					66,366
	Total liabilities			5,515,867					5,351,023					4,947,460
Tompkins Financial Corporation Shareholders’ equity				557,563					545,545					506,243
Noncontrolling interest				1,543					1,512					1,511
	Total equity			559,106					547,057					507,754
	Total liabilities and equity		$	6,074,973				$	5,898,080				$	5,455,214
Interest rate spread							3.17%					3.20%					3.25%
	Net interest income/margin on earning assets					47,405	3.30%				184,750	3.33%				172,271	3.38%
Tax Equivalent Adjustment						(1,031)					(4,114)					(3,890)
	Net interest income per consolidated financial statements				$	46,374				$	180,636				$	168,381

Tompkins Financial Corporation - Summary Financial Data (Unaudited)
(In thousands, except per share data)		Quarter-Ended									Year-Ended
		Dec-16		Sep-16		Jun-16		Mar-16		Dec-15		Dec-16
Period End Balance Sheet
Securities	$	1,571,657	$	1,515,761	$	1,564,080	$	1,583,742	$	1,539,123	$	1,571,657
Originated loans and leases, net of unearned income and deferred costs and fees (2)		3,863,922		3,672,539		3,551,628		3,370,791		3,310,768		3,863,922
Acquired loans and leases (3)		394,111		417,008		426,485		450,122		461,274		394,111
Allowance for  loan and lease losses		35,755		34,112		33,125		32,530		32,004		35,755
Total assets		6,236,756		6,102,215		5,924,906		5,764,971		5,689,995		6,236,756
Total deposits		4,625,139		4,690,300		4,469,721		4,555,228		4,395,306		4,625,139
Federal funds purchased and securities sold under agreements to repurchase		69,062		77,218		97,180		116,551		136,513		69,062
Other borrowings		884,815		671,000		700,026		455,341		536,285		884,815
Trust preferred debentures		37,681		37,638		37,595		37,552		37,509		37,681
Total common equity		547,953		559,640		552,918		538,408		515,014		547,953
Total equity		549,405		561,190		554,435		539,893		516,466		549,405
Average Balance Sheet
Average earning assets	$	5,707,121	$	5,577,885	$	5,492,913	$	5,388,420	$	5,260,979	$	5,542,137
Average assets		6,074,973		5,942,260		5,842,387		5,730,271		5,624,351		5,898,080
Average interest-bearing liabilities		4,237,126		4,168,879		4,143,031		4,067,385		3,930,707		4,154,374
Average equity		559,106		557,281		543,283		528,314		518,529		547,057
Share data
Weighted average shares outstanding (basic)		14,862,189		14,829,222		14,798,515		14,760,276		14,719,394		14,812,712
Weighted average shares outstanding (diluted) (10)		15,014,221		14,965,233		14,917,206		14,847,616		14,869,103		14,936,231
Period-end shares outstanding		15,135,906		15,055,954		15,035,369		15,023,776		14,979,684		15,135,906
Common equity book value per share	$	36.20	$	37.17	$	36.77	$	35.84	$	34.38	$	36.20
Tangible book value per share (Non-GAAP)	$	29.38	$	30.28	$	29.82	$	28.85	$	27.48	$	29.38
Income Statement
Net interest income	$	46,374	$	45,317	$	44,907	$	44,038	$	43,437	$	180,636
Provision for loan/lease losses		1,706		782		978		855		1,533		4,321
Noninterest income		16,316		17,905		17,084		17,503		17,910		68,808
Noninterest expense		39,389		40,324		39,388		39,506		39,370		158,607
Income tax expense (10)		6,444		6,945		6,760		6,896		6,557		27,045
Net income attributable to Tompkins Financial Corporation (10)		15,118		15,138		14,833		14,251		13,854		59,340
Noncontrolling interests		33		33		32		33		33		131
Basic earnings per share (8) (10)	$	1.00	$	1.01	$	0.99	$	0.95	$	0.93	$	3.94
Diluted earnings per share (8) (10)	$	0.99	$	1.00	$	0.98	$	0.94	$	0.92	$	3.91
Nonperforming Assets
Originated nonaccrual loans and leases	$	14,300	$	11,554	$	11,008	$	12,671	$	13,506	$	14,300
Acquired nonaccrual loans and leases		4,741		4,559		4,831		4,145		4,331		4,741
Originated loans and leases 90 days past due and accruing		0		35		89		57		58		0
Troubled debt restructurings not included above		2,631		2,148		2,172		3,862		3,915		2,631
Total nonperforming loans and leases		21,672		18,296		18,100		20,735		21,810		21,672
OREO		908		1,008		1,001		1,865		2,692		908
Total nonperforming assets	$	22,580	$	19,304	$	19,101	$	22,600	$	24,502	$	22,580

Tompkins Financial Corporation - Summary Financial Data (Unaudited) – continued
		Quarter-Ended									Year-Ended
Delinquency - Originated loan and lease portfolio		Dec-16		Sep-16		Jun-16		Mar-16		Dec-15		Dec-16
Loans and leases 30-89 days past due and
accruing (2)	$	6,694	$	4,551	$	4,464	$	2,519	$	3,280	$	6,694
Loans and leases 90 days past due and accruing (2)		0		35		89		57		58		0
Total originated loans and leases past due and accruing (2)		6,694		4,586		4,553		2,576		3,338		6,694
Delinquency - Acquired loan and lease portfolio
Loans 30-89 days past due and accruing (3)(7)	$	2,553	$	1,069	$	1,750	$	1,039	$	1,209	$	2,553
Loans 90 days or more past due		2,557		2,555		1,861		1,915		2,515		2,557
Total acquired loans and leases past due and accruing		5,110		3,624		3,611		2,954		3,724		5,110
Total loans and leases past due and accruing	$	11,804	$	8,210	$	8,164	$	5,530	$	7,062	$	11,804
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$	33,956	$	32,968	$	31,981	$	31,312	$	30,450	$	31,312
Provision for loan and lease losses		1,419		868		978		872		1,185		4,137
Net loan and lease (recoveries) charge-offs		(223)		(120)		(9)		203		323		(149)
Allowance for loan and lease losses (originated
loan portfolio) - balance at end of period	$	35,598	$	33,956	$	32,968	$	31,968	$	31,312	$	35,598
Allowance for Loan Losses - Acquired loan and lease portfolio
Balance at beginning of period	$	156	$	157	$	549	$	692	$	515	$	692
Provision (credit) for loan and lease losses		287		(86)		0		(17)		348		184
Net loan and lease (recoveries) charge-offs		286		(85)		392		126		171		719
Allowance for loan and lease losses (acquired
loan portfolio) - balance at end of period		157		156		157		549		692		157
Total allowance for loan and lease losses	$	35,755	$	34,112	$	33,125	$	32,530	$	32,004	$	35,755
Loan Classification - Originated Portfolio
Special Mention	$	20,485	$	27,215	$	20,639	$	20,388	$	19,657	$	20,485
Substandard		20,316		18,121		16,462		18,026		18,186		20,316
Loan Classification - Acquired Portfolio
Special Mention		526		540		550		534		540		526
Substandard		13,141		14,000		13,975		17,445		17,007		13,141
Loan Classifications - Total Portfolio
Special Mention		21,011		27,755		21,189		20,922		20,197		21,011
Substandard		33,457		32,121		30,437		35,471		35,193		33,457

Tompkins Financial Corporation - Summary Financial Data (Unaudited) – continued
RATIO ANALYSIS	Quarter-Ended					Year-Ended
Credit Quality	Dec-16	Sep-16	Jun-16	Mar-16	Dec-15		Dec-16
Nonperforming loans and leases/total loans and leases (7)	0.51%	0.45%	0.45%	0.54%	0.58%		0.51%
Nonperforming assets/total assets	0.36%	0.32%	0.32%	0.39%	0.43%		0.36%
Allowance for originated loan and lease losses/total originated loans and leases	0.92%	0.92%	0.93%	0.95%	0.95%		0.92%
Allowance/nonperforming loans and leases	164.98%	186.45%	183.01%	156.88%	146.74%		164.98%
Net loan and lease losses (recoveries) annualized/total average loans and leases	0.01%	(0.02%)	0.04%	0.03%	0.05%		0.01%
Capital Adequacy (period-end)
Tier 1 capital / average assets *	8.41%	8.83%	8.79%	8.79%	8.82%		8.41%
Total capital / risk-weighted assets *	12.22%	12.97%	12.95%	13.18%	13.03%		12.22%
Profitability
Return on average assets * (10)	0.99%	1.01%	1.02%	1.00%	0.98%		1.01%
Return on average equity * (10)	10.76%	10.81%	10.98%	10.85%	10.63%		10.85%
Net interest margin (TE) *	3.30%	3.31%	3.36%	3.36%	3.35%		3.33%
* Quarterly ratios have been annualized

NON-GAAP MEASURES
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (GAAP).  Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as reconciliation to the comparable GAAP measure, is provided in the accompanying tables.  Management believes that these non-GAAP measures provide useful information.  Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  See "Tompkins Financial Corporation - Summary Financial Data (Unaudited)" tables for Non-GAAP related calculations.
Non-GAAP Disclosure - Tangible Book Value Per Share
		Quarter-Ended									Year-Ended
		Dec-16		Sep-16		Jun-16		Mar-16		Dec-15		Dec-16
Total common equity	$	547,953	$	559,640	$	552,918	$	538,408	$	515,014	$	547,953
Less:  Goodwill and intangibles (9)		103,214		103,732		104,636		104,987		103,347		103,214
Tangible common equity		444,739		455,908		448,282		433,421		411,667		444,739
Ending shares outstanding		15,135,906		15,055,954		15,035,369		15,023,776		14,979,684		15,135,906
Tangible book value per share (Non-GAAP)	$	29.38	$	30.28	$	29.82	$	28.85	$	27.48	$	29.38

Tompkins Financial Corporation - Summary Financial Data (Unaudited) - continued
Non-GAAP Disclosure - YTD adjusted diluted earnings per share
	Dec-16		Dec-15
Net income available to common shareholders	$	59,340	$	58,421
Less: Dividends and undistributed earnings allocated to unvested restricted stock awards		912		834
Adjusted net income available to common shareholders		58,428		57,587
Gain on pension plan curtailment (net of tax)		0		(3,602)
Net operating income (Non-GAAP)		58,428		53,985
Weighted average shares outstanding (diluted)		14,936,231		14,863,026
Adjusted diluted earnings per share (Non-GAAP)	$	3.91	$	3.63
(1) Federal Reserve peer ratio as of September 30, 2016, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.
(2) "Originated" equals loans and leases not included by definition in "acquired loans".
(3)"Acquired Loans and Leases" equals loans and leases acquired at fair value, accounted for in accordance with FASB ASC Topic 805.
(4) Average balances and yields on available-for-sale securities are based on historical amortized cost.
(5) Interest income includes the tax effects of taxable-equivalent basis.
(6) 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 consolidated financial statements included in Part I of the Company's annual report on Form 10-K for the fiscal year ended December 31, 2015.
(7) Certain acquired loans and leases that are past due are not on nonaccrual and are not included in nonperforming loans.  The risk of credit loss on these loans has been considered by virtue of the Corporation's estimate of acquisition-date fair value and these loans are considered accruing as the Corporation primarily recognizes interest income through accretion of the difference between the carrying value of these loans and their expected cash flows.
(8)Earnings per share year-to-date may not equal the sum of the quarterly earnings per share as a result of rounding of average shares.
(9) "Goodwill and intangibles" equal Total Intangible Assets less Mortgage Servicing Rights in the above tables.
(10) The third quarter, second quarter, and first quarter of 2016 information is revised to reflect the impact of the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting".  The early adoption resulted in $847,000, $274,000, $262,000, and $71,000 of excess benefits recognized within "income tax expense" during the three months ended December 31, September 30, June 30, and March 31, 2016, respectively.