EX-99.1 2 ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

(TOMPKINS FINANCIAL LOGO)


	For more information contact:
	Stephen S. Romaine, President & CEO
	Francis M. Fetsko, CFO
	Tompkins Financial Corporation 607.273.3210

For Immediate Release
Wednesday, April 29, 2009

Tompkins Financial Corporation reports increase in first quarter earnings

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

Tompkins Financial Corporation reported net income of $7.7 million for the first quarter of 2009, an increase of 2.7% over the $7.5 million reported for the same period in 2008. Diluted earnings per share of $0.79 for the first quarter of 2009 were up 2.6% when compared to the $0.77 of diluted earnings per share reported in the first quarter of 2008. Stephen S. Romaine, President and CEO stated, “We are very pleased that in the current challenging economic climate we continue to have strong operating performance. Growth in earnings per share, when adjusted for non-recurring income related to the VISA IPO in the first quarter of 2008, was up 17.9% over the same period last year. Contributing to our strong operating results, was very solid deposit growth during the quarter, which contributed to an improved net interest margin.”

Some highlights for the quarter included:


	§	Diluted earnings per share of $0.79, represents the Company’s best first quarter earnings performance ever.

	§	Net interest income of $25.9 million, was up 30.3% from same quarter last year.

	§	Noninterest income of $10.9 million, declined by $1.6 million from the same period last year due to $1.6 million in non-recurring income related to the VISA IPO, as well as lower revenue from investment services activities, which has been negatively impacted by declining stock market performance.

	§	Total loans were $1.8 billion at March 31, 2009, up 24.5% from March 31, 2008, and remaining relatively flat from December 31, 2008.


	§	Nonperforming assets represented 0.54% of total assets at March 31, 2009, compared to 0.56% at December 31, 2008, and 0.38% at March 31, 2008.

	§	In February the Company announced plans to raise capital through a Trust Preferred securities offering. On April 10, 2009, a $15 million issuance was successfully completed.

Total assets were $3.0 billion at March 31, 2009, up $542.9 million or 22.2% from $2.5 billion at March 31, 2008. Total loans were $1.8 billion at March 31, 2009, representing a 24.5% increase from the prior year. Total deposits at March 31, 2009, were $2.3 billion, up 26.9% from March 31, 2008.

The growth comparisons to the same quarter last year are impacted by the May 9, 2008, acquisition of Sleepy Hollow Bancorp (Sleepy Hollow). Immediately following the acquisition, Sleepy Hollow Bank was successfully merged into our Mahopac National Bank subsidiary. Total assets acquired from Sleepy Hollow were $269.2 million, and included $151.2 million in loans, $46.9 million in securities, and resulted in $18.2 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.

Balance sheet growth contributed to improved net interest income in 2009. Net interest income of $25.9 million in the first quarter of 2009 was up 30.3% over the same period in 2008. This represented our 8^th consecutive quarter of increased net interest income. Net interest income also benefited from an improved net interest margin, which was 3.97% in the first quarter of 2009, compared to 3.89% in the fourth quarter of 2008, and 3.66% in the first quarter of 2008.

Offsetting some of the benefits of improved net interest income was an increase in the provision for loan and lease losses. The provision for loan and lease losses increased to $2.0 million in the first quarter of 2009, compared to $625,000 in the first quarter of 2008. Trends in net charge-offs, higher delinquency rates in the portfolio, and general economic conditions all played a role in the increased provision expense for the quarter. Mr. Romaine commented, “While our asset quality trends reflect some of the stress that is being felt in the broader economy, our credit quality ratios were modestly improved from the fourth quarter of 2008, remain manageable, and compare favorably to our peers.” Annualized net charge-offs for the three months ended March 31, 2009, represented 0.16% of average loans (down from 0.18% for the full year in 2008), which compares to a Federal Reserve Board peer group¹ ratio of 0.66%. Nonperforming assets represented 0.54% of total assets as of March 31, 2009 (down from 0.56% at December 31, 2008, and up from 0.38% at March 31, 2008), which compares to a Federal Reserve Board peer group¹ratio of 2.26%.

Noninterest income for the first quarter of 2009 was $10.9 million, a decline of $1.6 million from $12.5 million for the same period in 2008. As previously mentioned, non-recurring income from the VISA IPO boosted noninterest income by $1.6 million in the first quarter of 2008. The current weak economic climate has played a role in the declining trends in other noninterest income categories, including investment services fees and service charges on deposit accounts, which were both down from the same quarter last year. Insurance revenues increased by $329,000 in the first quarter of 2009 partially offsetting declines in other fee income categories.

Noninterest expenses for the first quarter 2009 were $23.3 million, up 14.3% from the same period last year. The increase over the same period last year was 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.

Mr. Romaine added, “As we consider current economic forecasts, state budget deficits, volatile interest rates, and uncertain stock market conditions, we expect 2009 to be another challenging year. As our first quarter results indicate, by remaining committed to long-term results, building diversified revenue sources, and providing high quality financial solutions to our clients, Tompkins remains positioned to perform well in these challenging times.”

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, 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 December 31, 2008, includes banks and bank holding companies with consolidated assets between $1 billion and $3 billion.

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

(In thousands, except share data)


	As of			As of
	03/31/2009			12/31/2008

ASSETS
Cash and noninterest bearing balances due from banks	$	38,497		$	48,133
Interest bearing balances due from banks		4,067			4,116
Federal funds sold		5,000			0
Trading securities, at fair value		36,650			38,101
Available-for-sale securities, at fair value		899,286			764,193
Held-to-maturity securities, fair value of $55,504 at March 31, 2009, and $55,064 at December 31, 2008		53,978			54,453
Loans and leases, net of unearned income and deferred costs and fees		1,811,792			1,817,531
Less: Allowance for loan and lease losses		19,980			18,672

Net Loans and Leases		1,791,812			1,798,859

Bank premises and equipment, net		45,074			46,613
Corporate owned life insurance		35,029			34,804
Goodwill		41,490			41,479
Other intangible assets		5,147			5,299
Accrued interest and other assets		37,282			31,672

Total Assets	$	2,993,312		$	2,867,722


LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market	$	1,159,198		$	980,011
Time		766,016			703,107
Noninterest bearing		410,723			450,889

Total Deposits		2,335,937			2,134,007

Federal funds purchased and securities sold under agreements to repurchase, fair value of $16,109 at March 31, 2009 and $16,170 at December 31, 2008		182,744			196,304
Other borrowings, fair value of $11,984 at March 31, 2009 and $12,179 at December 31, 2008		206,056			274,791
Other liabilities		41,190			43,259

Total Liabilities		2,765,927			2,648,361


EQUITY
Tompkins Financial Corporation shareholders’ equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued: 9,732,474 at March 31, 2009; and 9,727,418 at December 31, 2008		973			973
Additional paid-in capital		153,352			152,842
Retained earnings		78,190			73,779
Accumulated other comprehensive loss		(4,512	)		(7,602	)
Treasury stock, at cost – 76,640 shares at March 31, 2009, and 76,881 shares at December 31, 2008		(2,103	)		(2,083	)

Total Tompkins Financial Corporation Shareholders’ Equity		225,900			217,909
Noncontrolling interest		1,485			1,452

Total Equity	$	227,385		$	219,361

Total Liabilities and Equity	$	2,993,312		$	2,867,722

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

(In thousands, except per share data)


	Three Months Ended
	03/31/2009		03/31/2008

INTEREST AND DIVIDEND INCOME
Loans	$	26,678	$	24,262
Due from banks		8		88
Federal funds sold		5		20
Trading securities		362		626
Available-for-sale securities		8,695		8,073
Held-to-maturity securities		503		474

Total Interest and Dividend Income		36,251		33,543


INTEREST EXPENSE
Deposits:
Time certificates of deposits of $100,000 or more		1,490		2,798
Other deposits		5,134		7,161
Federal funds purchased and securities sold under agreements to repurchase		1,565		2,037
Other borrowings		2,211		1,865

Total Interest Expense		10,400		13,861

Net Interest Income		25,851		19,682

Less: Provision for loan and lease losses		2,036		625

Net Interest Income After Provision for Loan and Lease Losses		23,815		19,057


NONINTEREST INCOME
Investment services income		3,202		3,669
Insurance commissions and fees		3,119		2,790
Service charges on deposit accounts		2,219		2,525
Card services income		790		795
Other service charges		442		744
Mark-to-market gains on trading securities		58		295
Mark-to-market gain (loss) on liabilities held at fair value		256		(848	)
Increase in cash surrender value of corporate owned life insurance		222		337
Gain on VISA stock redemption		0		1,639
Gain (loss) on sales of loans		401		(3	)
Other income		217		477
Net gain on sale of available-for-sale securities		7		247

Total Noninterest Income		10,933		12,667


NONINTEREST EXPENSES
Salaries and wages		9,528		9,369
Pension and other employee benefits		3,387		2,695
Net occupancy expense of bank premises		2,019		1,621
Furniture and fixture expense		1,112		924
Marketing expense		851		778
Professional fees		880		629
Software licenses and maintenance		672		609
Cardholder expense		325		294
Amortization of intangible assets		249		148
Other operating expense		4,266		3,314

Total Noninterest Expenses		23,289		20,381

Income Before Income Tax Expense		11,459		11,343

Income Tax Expense		3,716		3,802

Net Income	$	7,743	$	7,541

Less: Net income attributable to noncontrolling interest		33		33

Net Income Attributable to Tompkins Financial Corporation	$	7,710	$	7,508

Basic Earnings Per Share	$	0.79	$	0.78
Diluted Earnings Per Share	$	0.79	$	0.77

Tompkins Financial Corporation - Average Consolidated Balance Sheet and Net Interest Analysis (unaudited)


	Year to Date Period Ended Mar-09								Year to Date Period Ended Mar-08

(Dollar amounts in thousands)	Average Balance (YTD)		Interest			Average Yield/Rate			Average Balance (YTD)		Interest			Average Yield/Rate

ASSETS
Interest-earning assets
Certificates of deposit with other banks	$	9,302	$	8			0.35	%	$	11,042	$	88			3.21	%
Securities (1)
U.S. Government securities		672,855		7,781			4.69	%		565,869		6,875			4.89	%
Trading securities		37,506		362			3.91	%		52,906		626			4.76	%
State and municipal (2)		117,235		1,766			6.11	%		100,629		1,544			6.17	%
Other securities (2)		58,750		329			2.27	%		51,423		703			5.50	%

Total securities		886,346		10,238			4.68	%		770,827		9,748			5.09	%
Federal funds sold		8,547		5			0.24	%		2,936		20			2.74	%
Loans, net of unearned income (3)
Real estate		1,261,159		18,930			6.09	%		970,778		16,030			6.64	%
Commercial loans (2)		448,136		6,101			5.52	%		383,995		6,620			6.93	%
Consumer loans		87,661		1,517			7.02	%		79,054		1,467			7.46	%
Direct lease financing		13,518		201			6.03	%		14,391		192			5.37	%

Total loans, net of unearned income		1,810,474		26,749			5.99	%		1,448,218		24,309			6.75	%

Total interest-earning assets		2,714,669		37,000			5.53	%		2,233,023		34,165			6.15	%


Other assets		204,477								172,017


Total assets	$	2,919,146							$	2,405,040


LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	$	1,085,475	$	2,366			0.88	%	$	809,456	$	3,594			1.79	%
Time deposits > $100,000		276,391		1,489			2.18	%		273,598		2,798			4.11	%
Time deposits < $100,000		417,859		2,528			2.45	%		339,271		3,530			4.18	%
Brokered time deposits < $100,000		42,688		241			2.29	%		4,070		37			3.66	%

Total interest-bearing deposits		1,822,413		6,624			1.47	%		1,426,395		9,959			2.81	%

Federal funds purchased & securities sold under agreements to repurchase		188,204		1,565			3.37	%		210,850		2,037			3.89	%
Other borrowings		225,176		2,211			3.98	%		159,708		1,865			4.70	%

Total interest-bearing liabilities		2,235,793		10,400			1.89	%		1,796,953		13,861			3.10	%

Noninterest bearing deposits		417,932								368,699
Accrued expenses and other liabilities		42,464								34,967

Total liabilities		2,696,189								2,200,619

Shareholders’ equity		221,490								202,195
Noncontrolling interest		1,467								2,226

Total equity		222,957								204,421

Total liabilities and equity	$	2,919,146							$	2,405,040

Interest rate spread							3.64	%							3.05	%

Net interest income/margin on earning assets			$	26,600			3.97	%			$	20,304			3.66	%

Tax equivalent adjustment (2)				(749	)							(622	)

Net interest income per consolidated financial statements			$	25,851							$	19,682


(1)	Average balances and yields exclude unrealized gains and losses on available-for-sale securities.
(2)	Interest income includes the effects of taxable-equivalent adjustments using a blended Federal and State income tax rate of 40% to increase tax exempt interest income to a taxable-equivalent basis.
(3)	Nonaccrual loans are included in the average loans totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.

Tompkins Financial Corporation – Summary Financial Data (Unaudited)


(In thousands, except share and per share data)	Quarter-Ended										Year-Ended

	Mar-09		Dec-08		Sept-08		June-08		Mar-08		Dec-08


Period End Balance Sheet
Securities	$	989,914	$	856,747	$	800,398	$	839,976	$	811,627	$	856,747
Loans and leases, net of unearned income and deferred costs and fees		1,811,792		1,817,531		1,718,378		1,652,831		1,455,570		1,817,531
Allowance for loan and lease losses		19,980		18,672		17,306		16,835		14,781		18,672
Total assets		2,993,312		2,867,722		2,725,014		2,705,196		2,450,413		2,867,722

Total deposits		2,335,937		2,134,007		2,094,647		2,057,244		1,841,045		2,134,007
Federal funds purchased and securities sold under agreements to repurchase		182,744		196,304		190,299		203,687		210,079		196,304
Other borrowings		206,056		274,791		185,067		192,638		156,439		274,791
Total equity		227,385		219,361		218,706		209,337		211,173		219,361

Average Balance Sheet
Average earning assets	$	2,714,669	$	2,613,324	$	2,512,077	$	2,408,901	$	2,233,023	$	2,442,502
Average assets		2,919,146		2,813,158		2,708,126		2,602,914		2,405,040		2,633,020
Average interest-bearing liabilities		2,235,793		2,119,357		2,034,353		1,953,254		1,796,953		1,976,963
Average equity		222,957		214,838		211,361		212,482		204,421		210,785

Share data
Weighted average shares outstanding (basic)		9,701,539		9,683,177		9,668,256		9,650,917		9,602,478		9,651,341
Weighted average shares outstanding (diluted)		9,779,003		9,780,358		9,752,250		9,747,914		9,696,550		9,744,402
Period-end shares outstanding		9,699,828		9,694,772		9,671,379		9,662,547		9,629,693		9,694,772
Book value per share	$	23.44	$	22.63	$	22.61	$	21.66	$	21.93	$	22.63

Income Statement
Net interest income	$	25,851	$	24,803	$	24,038	$	21,867	$	19,682	$	90,390
Provision for loan/lease losses		2,036		2,105		1,515		1,183		625		5,428
Noninterest income		10,933		10,331		11,442		11,595		12,667		46,035
Noninterest expenses		23,289		22,728		22,190		21,757		20,381		87,056
Income tax expense		3,716		2,995		3,725		3,288		3,802		13,810
Net income		7,710		7,274		7,933		7,119		7,508		29,834
Noncontrolling interest		33		32		117		115		33		297
Basic earnings per share	$	0.79	$	0.75	$	0.82	$	0.74	$	0.78	$	3.09
Diluted earnings per share	$	0.79	$	0.74	$	0.81	$	0.73	$	0.77	$	3.06

Asset Quality
Net charge-offs	$	728	$	739	$	1,043	$	615	$	451	$	2,848
Nonaccrual loans and leases		15,479		15,798		12,463		10,552		9,008		15,798
Loans and leases 90 days past due and accruing		676		161		0		1,422		53		161
Troubled debt restructurings not included above		0		69		132		135		139		69

Total nonperforming loans and leases		16,155		16,028		12,595		12,109		9,200		16,028
OREO		103		110		526		481		5		110

Nonperforming assets		16,258		16,138		13,121		12,590		9,205		16,138

Tompkins Financial Corporation – Summary Financial Data (Unaudited)


	Quarter-Ended															Year-Ended

	Mar-09			Dec-08			Sept-08			June-08			Mar-08			Dec-08

Credit Quality
Net loan and lease losses/ average loans and leases *		0.16	%		0.17	%		0.25	%		0.16	%		0.13	%		0.18	%
Nonperforming loans and leases/loans and leases		0.89	%		0.88	%		0.73	%		0.73	%		0.63	%		0.88	%
Nonperforming assets/assets		0.54	%		0.56	%		0.48	%		0.47	%		0.38	%		0.56	%
Allowance/nonperforming loans and leases		123.68	%		116.50	%		137.40	%		139.03	%		160.67	%		116.50	%
Allowance/loans and leases		1.10	%		1.03	%		1.01	%		1.02	%		1.02	%		1.03	%

Capital Adequacy (period-end)
Tier I capital / average assets		6.7	%		6.7	%		7.0	%		7.1	%		7.9	%		6.7	%
Total capital / risk-weighted assets		10.8	%		10.6	%		10.9	%		11.1	%		12.4	%		10.6	%

Profitability
Return on average assets *		1.07	%		1.03	%		1.17	%		1.10	%		1.26	%		1.13	%
Return on average equity *		14.02	%		13.47	%		14.93	%		13.48	%		14.77	%		13.89	%
Net interest margin (TE) *		3.97	%		3.89	%		3.92	%		3.77	%		3.66	%		3.81	%

* Quarterly ratios have been annualized


	Quarter-ended											Year-Ended

Non-GAAP Disclosure	Mar-09		Dec-08		Sept-08		June-08		Mar-08			Dec-08

Reported net income	$	7,710	$	7,274	$	7,933	$	7,119	$	7,508		$	29,834
Adjustments:
Proceeds and accrual adjustment from VISA IPO (after-tax)		0		0		0		0		(983	)		(983	)
Subtotal adjustments		0		0		0		0		(983	)		(983	)
Adjusted net income	$	7,710	$	7,274	$	7,933	$	7,119	$	6,525		$	28,851
Weighted average shares outstanding (diluted)		9,779,003		9,780,358		9,752,250		9,747,914		9,696,550			9,744,402
Adjusted diluted earnings per share	$	.79	$	.74	$	.81	$	.73	$	.67		$	2.96


	Year-to-date period ended

Non-GAAP Disclosure	Mar-09		Mar-08

Reported net income	$	7,710	$	7,508
Adjustments:
Proceeds and accrual adjustment from VISA IPO (after-tax)		0		(983	)
Subtotal adjustments		0		(983	)
Adjusted net income	$	7,710	$	6,525
Weighted average shares outstanding (diluted)		9,779,003		9,696,550
Adjusted diluted earnings per share	$	.79	$	.67