TOMPKINS FINANCIAL CORP - FORM 8-K - EX-99.1 - PRESS RELEASE

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EX-99.2 - PRESS RELEASE - TOMPKINS FINANCIAL CORP	ex-99_2.htm
EX-99.3 - PRESS RELEASE - TOMPKINS FINANCIAL CORP	ex-99_3.htm
8-K - CURRENT REPORT - TOMPKINS FINANCIAL CORP	tompkins-8k_102611.htm

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, October 26, 2011

Tompkins Financial Corporation Reports Increase in Third Quarter Earnings

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

Tompkins Financial Corporation reported net income of $7.9 million for the third quarter of 2011, an increase of 4.9% over the $7.5 million reported for the same period in 2010. Diluted earnings per share were $0.71 for the third quarter of 2011, a 2.9% increase over the $0.69 reported for the third quarter of 2010.

For the nine months ended September 30, 2011, net income was $26.0 million, compared to $24.9 million for the same period last year. Diluted earnings per share totaled $2.36 for the first nine months of 2011, an increase of 2.6% over the $2.30 reported for the first nine months of 2010.

Stephen S. Romaine, President and CEO stated, “Growth has been challenging in the current economic climate, which makes our results through the first nine months of the year especially rewarding. Net income, revenue, loans, and deposits all showed increases when compared to the prior year, and our year to date earnings reflected the best performance through the first nine months of the year in the Company’s history.”

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

§	Diluted earnings per share for the quarter and year to date periods remain ahead of prior year.

§	Total revenue was $40.2 million for the third quarter of 2011 and $120.2 million for the first nine months of 2011, up 2.9% and 2.1%, respectively, over the same periods in 2010.

§	Total loans were $2.0 billion at September 30, 2011, up $37.5 million or 2.0% from September 30, 2010.

§	Total deposits were $2.7 billion at quarter end, up 5.8% from the same period in 2010. Noninterest-bearing deposits totaled $570.4 million at September 30, 2011, an increase of 13.9% over the same period in 2010.

The net interest margin for the third quarter of 2011 was 3.71%, compared to 3.77% for the second quarter of 2011, and 3.85% for the third quarter of 2010. Despite the decline in net interest margin over the past 12 months, net interest income of $27.9 million for the third quarter of 2011 was comparable to the same quarter last year. Growth in interest earning assets, primarily in the securities portfolio, helped mitigate the earnings impact of the decline in margin.

Noninterest income was up 9.7% for the quarter and up 8.7% for the year-to-date period. Card services income, insurance commissions and fees, and investment services income were all up from the prior year for both the quarter and year to date periods. Similarly, other income was up for the quarter and year to date periods, and benefited from approximately $600,000 in nonrecurring gains on the sale of real estate and other assets in the third quarter of 2011.

Noninterest expense for the third quarter of 2011 was $24.0 million, down 3.5% over the same period prior year. Noninterest expense for the year-to-date period was $74.4 million, comparable to the nine months ended September 30, 2010. A reduction in FDIC insurance costs contributed to the reduction in noninterest expense, when compared to the third quarter of 2010.

Provision for loan and lease losses was $4.9 million for the third quarter of 2011, up from $1.0 million in the second quarter of 2011, and $3.5 million in the third quarter of 2010. The increase in the provision for loan and lease losses during the quarter was largely the result of an increase in loan charge-offs during the period, which included a single credit that represented 91.7% of the $5.5 million in gross charge offs during the quarter.

Nonperforming assets were generally flat when compared to the most recent prior quarter, and are down 23.2% when compared to the same quarter last year. The ratio of nonperforming assets to total assets of 1.28% at September 30, 2011, has improved for four consecutive quarters and remains well below the most recent peer averages of 3.24% published as of June 30, 2011, by the Federal Reserve1. The Company continues to receive regular payments on over 60% of loan balances that we categorize as nonperforming.

The Company’s allowance for loan and lease losses totaled $27.9 million at September 30, 2011, which represented 1.43% of total loans, compared to $27.8 million and 1.46% at December 31, 2010 and $28.7 million and 1.50% at September 30, 2010. The allowance for loan and lease losses coverage of nonperforming loans was 67.60% as of September 30, 2011, reflecting improvement from 61.46% at December 31, 2010, and 53.15% at September 30, 2010.

Capital levels continued to improve during the quarter and ratios remain well above the regulatory well capitalized minimums. Tier 1 capital as a percentage of average assets was 8.55%; and the ratio of total capital to risk-weighted assets was 14.11%. Both of these regulatory capital ratios have improved for the last seven consecutive quarters.

Mr. Romaine, added, “Our strategy of balancing reasonable growth expectations with prudent management of risk has continued to serve us well in these challenging times. Despite an increase in net charge-offs during the quarter, the general trend in credit quality, as evidenced by a continued decline in classified loans, has continued to improve over the last several quarters. Although the interest rate and economic environment will remain a challenge for our business, we are extremely pleased to see continued growth in a majority of our key business lines.”

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 June 30, 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	09/30/2011			12/31/2010

Cash and noninterest bearing balances due from banks	$	57,496		$	47,339
Interest bearing balances due from banks		51,173			2,226
Money market funds		100			100
Cash and Cash Equivalents		108,769			49,665

Trading securities, at fair value		20,432			22,837
Available-for-sale securities, at fair value		1,082,970			1,039,608
Held-to-maturity securities, fair value of $28,053 at September 30, 2011, and $56,064
at December 31, 2010		27,367			54,973
Loans and leases, net of unearned income and deferred costs and fees		1,951,598			1,910,358
Less: Allowance for loan and lease losses		27,878			27,832
Net Loans and Leases		1,923,720			1,882,526

Federal Home Loan Bank stock and Federal Reserve Bank stock		16,906			21,985
Bank premises and equipment, net		44,991			46,103
Corporate owned life insurance		42,656			40,024
Goodwill		43,958			41,649
Other intangible assets, net		4,318			4,207
Accrued interest and other assets		42,930			56,766
Total Assets	$	3,359,017		$	3,260,343

LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		1,402,542			1,230,815
Time		702,716			741,829
Noninterest bearing		570,416			523,229
Total Deposits		2,675,674			2,495,873

Federal funds purchased and securities sold under agreements to repurchase		171,943			183,609
Other borrowings, including certain amounts at fair value of $12,117 at September 30, 2011
and $11,629 at December 31, 2010		138,001			244,193
Trust preferred debentures		25,063			25,060
Other liabilities		39,001			38,200
Total Liabilities	$	3,049,682		$	2,986,935

EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
11,158,796 at September 30, 2011; and 10,934,385 at December 31, 2010		1,116			1,093
Additional paid-in capital		206,010			198,114
Retained earnings		91,063			76,446
Accumulated other comprehensive income (loss)		12,097			(1,260	)
Treasury stock, at cost – 92,800 shares at September 30, 2011, and 92,025 shares
at December 31, 2010		(2,501	)		(2,437	)

Total Tompkins Financial Corporation Shareholders’ Equity		307,785			271,956
Noncontrolling interests		1,550			1,452
Total Equity	$	309,335		$	273,408
Total Liabilities and Equity	$	3,359,017		$	3,260,343

TOMPKINS FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended						Nine Months Ended
(In thousands, except per share data) (Unaudited)	09/30/2011			09/30/2010			09/30/2011			09/30/2010
INTEREST AND DIVIDEND INCOME
Loans	$	26,134		$	26,675		$	77,718		$	80,044
Due from banks		1			5			10			27
Federal funds sold		1			5			6			14
Trading securities		213			255			668			843
Available-for-sale securities		7,524			8,215			23,110			26,009
Held-to-maturity securities		249			359			944			1,160
Federal Home Loan Bank stock and Federal Reserve Bank stock		212			230			719			731
Total Interest and Dividend Income		34,334			35,744			103,175			108,828
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		817			1,035			2,534			3,360
Other deposits		2,449			3,178			7,639			10,506
Federal funds purchased and securities sold under agreements to repurchase		1,204			1,336			3,743			4,069
Trust preferred debentures		405			407			1,197			1,210
Other borrowings		1,546			1,924			4,655			5,770
Total Interest Expense		6,421			7,880			19,768			24,915
Net Interest Income		27,913			27,864			83,407			83,913
Less: Provision for loan and lease losses		4,870			3,483			7,785			7,074
Net Interest Income After Provision for Loan and Lease Losses		23,043			24,381			75,622			76,839
NONINTEREST INCOME
Investment services income		3,425			3,423			11,090			10,764
Insurance commissions and fees		3,573			3,365			10,406			9,722
Service charges on deposit accounts		2,165			2,115			6,256			6,602
Card services income		1,271			1,105			3,785			3,147
Mark-to-market gain on trading securities		55			177			170			558
Mark-to-market loss on liabilities held at fair value		(461	)		(323	)		(488	)		(940	)
Other income		1,998			1,401			5,217			3,887
Net other-than-temporary impairment losses		0			(34	)		0			(34	)
Net gain (loss) on securities transactions		286			(2	)		381			173
Total Noninterest Income		12,312			11,227			36,817			33,879
NONINTEREST EXPENSES
Salaries and wages		11,190			10,611			33,225			31,618
Pension and other employee benefits		3,374			3,616			11,063			10,970
Net occupancy expense of premises		1,721			1,820			5,321			5,427
Furniture and fixture expense		1,088			986			3,325			3,312
FDIC insurance		475			978			2,057			2,747
Amortization of intangible assets		137			186			453			586
Other operating expense		5,988			6,655			18,908			19,202
Total Noninterest Expenses		23,973			24,852			74,352			73,862
Income Before Income Tax Expense		11,382			10,756			38,087			36,856
Income Tax Expense		3,490			3,233			11,956			11,818
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		7,892			7,523			26,131			25,038
Less: Net income attributable to noncontrolling interests		33			33			98			98
Net Income Attributable to Tompkins Financial Corporation	$	7,859		$	7,490		$	26,033		$	24,940
Basic Earnings Per Share	$	0.71		$	0.69		$	2.37		$	2.31
Diluted Earnings Per Share	$	0.71		$	0.69		$	2.36		$	2.30

Average Consolidated Balance Sheet and Net Interest Analysis
	Quarter Ended								Year to Date Period Ended								Year to Date Period Ended
	September 30, 2011								September 30, 2011								September 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	$	3,597	$	1			0.11	%	$	9,987	$	10			0.13	%	$	30,112	$	27			0.12	%
Money market funds		100		-			0.00	%		100		-			0.00	%		100		-			0.00	%
Securities (1)
U.S. Government securities		972,856		6,903			2.81	%		955,022		21,119			2.96	%		837,883		23,710			3.78	%
Trading securities		20,856		213			4.05	%		21,650		668			4.13	%		28,569		843			3.95	%
State and municipal (2)		82,592		1,175			5.64	%		99,220		3,987			5.37	%		105,441		4,581			5.81	%
Other securities (2)		13,541		155			4.54	%		14,369		503			4.68	%		17,855		654			4.90	%
Total securities		1,089,845		8,446			3.07	%		1,090,261		26,277			3.22	%		989,748		29,788			4.02	%
Federal Funds Sold		5,868		1			0.07	%		6,238		6			0.13	%		10,956		14			0.17	%
FHLBNY and FRB stock		17,907		211			4.67	%		18,303		719			5.25	%		19,526		731			5.01	%
Loans, net of unearned income (3)
Real estate		1,404,516		18,759			5.30	%		1,386,097		55,738			5.38	%		1,340,032		56,878			5.67	%
Commercial loans (2)		454,602		6,266			5.47	%		454,306		18,440			5.43	%		462,442		18,749			5.42	%
Consumer loans		66,884		1,150			6.82	%		69,245		3,593			6.94	%		81,818		4,271			6.98	%
Direct lease financing		7,027		103			5.81	%		7,883		348			5.90	%		11,044		498			6.46	%
Total loans, net of unearned income		1,933,029		26,278			5.39	%		1,917,531		78,119			5.45	%		1,895,336		80,396			5.67	%
Total interest-earning assets		3,050,346		34,937			4.54	%		3,042,420		105,131			4.62	%		2,945,778		110,956			5.04	%

Other assets		235,813								227,910								228,545

Total assets		3,286,159								3,270,330								3,174,323

LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market		1,336,593		1,239			0.37	%		1,333,934		3,694			0.37	%		1,217,756		4,776			0.52	%
Time deposits > $100,000		312,583		817			1.04	%		315,265		2,534			1.07	%		333,814		3,360			1.35	%
Time deposits < $100,000		393,637		1,210			1.22	%		406,554		3,924			1.29	%		432,415		5,382			1.66	%
Brokered time deposits < $100,000		219		0			0.00	%		2,309		21			1.22	%		27,968		348			1.66	%
Total interest-bearing deposits		2,043,032		3,266			0.63	%		2,058,062		10,173			0.66	%		2,011,953		13,866			0.92	%
Federal funds purchased & securities sold under agreements
to repurchase		167,845		1,204			2.85	%		174,816		3,743			2.86	%		183,521		4,069			2.96	%
Other borrowings		155,636		1,546			3.94	%		160,340		4,655			3.88	%		192,551		5,770			4.01	%
Trust preferred debentures		25,063		405			6.41	%		25,062		1,197			6.39	%		25,057		1,210			6.46	%
Total interest-bearing liabilities		2,391,576		6,421			1.06	%		2,418,280		19,768			1.09	%		2,413,082		24,915			1.38	%

Noninterest bearing deposits		551,532								524,888								458,931
Accrued expenses and other liabilities		39,190								37,236								41,122
Total liabilities		2,982,298								2,980,404								2,913,135

Tompkins Financial Corporation Shareholders’ equity		302,786								288,579								259,687
Noncontrolling interest		1,075								1,347								1,501
Total equity		303,861								289,926								261,188

Total liabilities and equity	$	3,286,159							$	3,270,330							$	3,174,323
Interest rate spread							3.47	%							3.53	%							3.66	%
Net interest income/margin on earning assets				28,516			3.71	%				85,363			3.75	%				86,041			3.91	%

Tax Equivalent Adjustment				(603	)							(1,956	)							(2,128	)

Net interest income per consolidated financial statements			$	27,913							$	83,407							$	83,913

(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 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
	Sep-11		Jun-11		Mar-11		Dec-10		Sep-10		Dec-10

Period End Balance Sheet
Securities	$	1,130,769	$	1,138,563	$	1,121,443	$	1,117,418	$	1,053,038	$	1,117,418
Loans and leases, net of unearned income and deferred costs and fees		1,951,598		1,920,716		1,914,344		1,910,358		1,914,064		1,910,358
Allowance for loan and lease losses		27,878		28,361		28,035		27,832		28,684		27,832
Total assets		3,359,017		3,287,598		3,278,894		3,260,343		3,247,111		3,260,343

Total deposits		2,675,674		2,572,008		2,612,517		2,495,873		2,528,528		2,495,873
Federal funds purchased and securities sold under agreements to repurchase		171,943		178,545		182,009		183,609		191,596		183,609
Other borrowings		138,001		172,643		140,353		244,193		182,779		244,193
Trust preferred debentures		25,063		25,062		25,061		25,060		25,059		25,060
Shareholders' equity		309,335		300,060		282,237		273,408		276,495		273,408

Average Balance Sheet
Average earning assets	$	3,050,346	$	3,047,494	$	3,029,188	$	3,010,361	$	2,937,795	$	2,962,056
Average assets		3,286,159		3,271,895		3,252,549		3,243,822		3,168,478		3,191,840
Average interest-bearing liabilities		2,391,576		2,432,556		2,431,145		2,424,998		2,372,630		2,416,085
Average equity		303,861		288,341		277,283		280,051		273,517		265,943

Share data
Weighted average shares outstanding (basic)		11,049,831		10,974,616		10,905,197		10,888,138		10,845,106		10,812,502
Weighted average shares outstanding (diluted)		11,124,331		11,016,515		10,955,430		10,936,042		10,893,642		10,864,450
Period-end shares outstanding		11,122,886		11,051,894		10,952,410		10,898,475		10,878,813		10,898,475
Book value per share		27.81		27.15		25.77		25.09		25.42		25.09

Income Statement
Net interest income	$	27,913	$	27,952	$	27,542	$	27,861	$	27,864	$	111,775
Provision for loan/lease losses		4,870		1,005		1,910		1,433		3,483		8,507
Noninterest income		12,312		12,013		12,492		12,281		11,227		46,159
Noninterest expense		23,973		25,163		25,216		25,183		24,852		99,045
Income tax expense		3,490		4,364		4,102		4,602		3,233		16,420
Net income attributable to Tompkins Financial Corporation		7,859		9,400		8,773		8,892		7,490		33,831
Noncontrolling interests		33		33		33		32		33		131
Basic earnings per share	$	0.71	$	0.86	$	0.80	$	0.82	$	0.69	$	3.13
Diluted earnings per share	$	0.71	$	0.85	$	0.80	$	0.81	$	0.69	$	3.11

Asset Quality
Net charge-offs		5,353		679		1,707		2,285		1,329		5,025
Nonaccrual loans and leases		40,419		38,457		39,902		41,501		48,966		41,501
Loans and leases 90 days past due and accruing		379		2,512		1,266		1,217		1,737		1,217
Troubled debt restructurings not included above		441		0		2,411		2,564		3,264		2,564
Total nonperforming loans and leases		41,239		40,969		43,579		45,282		53,967		45,282
OREO		1,632		1,742		2,270		1,255		1,845		1,255
Nonperforming assets		42,871		42,711		45,849		46,537		55,812		46,537
Loan Classifications
Special Mention		66,697		80,470		70,765		80,920		72,135		80,920
Substandard		73,313		80,003		85,973		91,645		105,519		91,645
Doubtful		509		2,450		2,468		0		806		0

RATIO ANALYSIS	Quarter-Ended															Year-Ended
Credit Quality	Sep-11			Jun-11			Mar-11			Dec-10			Sep-10			Dec-10
Net loan and lease losses/ average loans
and leases *		1.10	%		0.14	%		0.36	%		0.48	%		0.28	%		0.26	%
Nonperforming loans and leases/loans and leases		2.11	%		2.13	%		2.28	%		2.37	%		2.82	%		2.37	%
Nonperforming assets/assets		1.28	%		1.30	%		1.40	%		1.43	%		1.72	%		1.43	%
Allowance/nonperforming loans and leases		67.60	%		69.23	%		64.33	%		61.46	%		53.15	%		61.46	%
Allowance/loans and leases		1.43	%		1.48	%		1.46	%		1.46	%		1.50	%		1.46	%

Capital Adequacy (period-end)
Tier I capital / average assets		8.55	%		8.39	%		8.22	%		8.02	%		8.01	%		8.02	%
Total capital / risk-weighted assets		14.11	%		13.98	%		13.66	%		13.42	%		13.14	%		13.42	%

Profitability
Return on average assets *		0.95	%		1.15	%		1.09	%		1.09	%		0.94	%		1.06	%
Return on average equity *		10.29	%		13.08	%		12.83	%		12.60	%		10.86	%		12.72	%
Net interest margin (TE) *		3.71	%		3.77	%		3.78	%		3.75	%		3.85	%		3.86	%
* Quarterly ratios have been annualized

TOMPKINS FINANCIAL CORP - FORM 8-K - EX-99.1 - PRESS RELEASE - October 28, 2011

Attached files

TOMPKINS FINANCIAL CORP Reports