Unassociated Document

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 21, 2010

Tompkins Financial Corporation reports record quarterly earnings

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

Tompkins Financial Corporation reported record net income of $9.0 million for the second quarter of 2010, an increase of 21.3% over the $7.4 million reported for the same period in 2009. Diluted earnings per share were $0.83 for the second quarter of 2010, a 20.3% increase over the $0.69 reported for the second quarter of 2009 (adjusted for 10% stock dividend approved on January 27, 2010; refer to footnote1).

For the six months ended June 30, 2010, net income was $17.4 million compared to $15.2 million for the same period prior year. Diluted earnings per share totaled $1.61 for the first six months of 2010, an increase of 14.2% over the $1.41 reported for the first six months of 2009.

Selected highlights for the second quarter included:

	●	Second quarter 2010 diluted earnings per share up 20.3% from same period in 2009 (2010 results would reflect an increase of 7.8% if second quarter 2009 results are adjusted for special FDIC assessment accrued in June 2009);

	●	Net interest income up 6.0% from the same quarter last year, representing the 13th consecutive quarter of increased net interest income;

	●	Lower net charge-offs, contributed to a 40.5% decrease in provision expense from $2.4 million in the second quarter of 2009, to $1.4 million in the second quarter of 2010.

	●	Second quarter Return on Equity of 13.92%. This is up from a 2009 full year Return on Equity of 13.66%, which ranked in top 11% of similar sized bank holding companies in the most recent Federal Reserve performance report2;

	●	The Company increased it cash dividend to $0.34 per share in the second quarter of 2010, a 10% increase from the immediately preceding quarter (when adjusted for the 10% stock dividend paid on February 15, 2010). The increase is consistent with the 21 consecutive years of annual dividend increases paid to shareholders through year end 2009.

	●	According to the most recent Federal Reserve performance report2 the Company’s ratio of Net Losses to Average Loans for the calendar year ended December 31, 2009, and for the quarter ended March 31, 2010, was better than 90% of all banks with total assets between $3 billion and $10 billion.

	●	Capital levels at June 30, 2010, remain well above the regulatory minimums to be considered well capitalized, and improving trends have continued in the current quarter.

Stephen S. Romaine, President and CEO stated, “As the uncertain economic conditions continue to pose challenges for our customers and our industry, we are obviously pleased to report on record earnings both for the quarter and year-to-date periods. We are especially pleased to note continued growth in revenue during the quarter. In addition to the continued growth in net interest income, we saw improving trends in each of our key fee based business activities.”

Growth in average earning assets and deposits has contributed to the increase in net interest income in 2010. When comparing the second quarter of 2010 to the second quarter of 2009, average loans were up 3.5% and average deposits were up 7.8%. Net interest income of $28.1 million in the second quarter of 2010 was up 6.0% over the same period in 2009. Net interest margin has remained relatively stable over the last 12 months. The 3.91% margin reported for the second quarter of 2010 compares to 3.89% in the fourth quarter of 2009, and 3.93% in the second quarter of 2009. Mr. Romaine commented, “The current economic climate has resulted in slower loan demand over the last several quarters, making loan growth more challenging. We remain committed to making loans that support economic activity in the communities we serve and feel that the growth we have experienced over the last twelve months is evidence of that commitment.”

The Company’s allowance for loan and lease losses totaled $26.5 million at June 30, 2010, which represented 1.40% of total loans. Annualized net charge-offs for the first six months of 2010 represented 0.15% of average loans and leases, which is down from 0.19% for the same period in 2009. Net charge-offs for the second quarter of 2010 were $244,000, which benefited from $560,000 in recoveries of loans previously charged off.

Nonperforming assets represented 1.28% of total assets as of June 30, 2010, up from 1.12% at December 31, 2009, and up from 0.87% at June 30, 2009. Approximately, 57% of the Company’s nonperforming loans were less than 30 days past due as of June 30, 2010. Mr. Romaine added, “Although nonperforming assets increased somewhat from the previous quarter, we are encouraged that during the quarter we noted improving financial conditions for certain credits within the portfolio. Additionally, our nonperforming asset ratios and loss experience remain significantly better than national averages. We remain diligent in monitoring the credit portfolio, as we recognize that many of our customers continue to be challenged by the prolonged economic downturn.”

Despite increases in all major fee income categories, noninterest income for the second quarter of 2010 of $11.3 million reflects a decline of 1.8% from the same period in 2009. Year-to-date 2010 noninterest income was $22.7 million, which is in line with the same period in 2009. Investment services revenue, the largest category of noninterest income, was $3.6 million for the second quarter of 2010, an increase of 8.0% from the second quarter of 2009. Other significant fee income categories include insurance revenue of $3.2 million (up 2.3%); service charges on deposit accounts of $2.4 million (up 7.0%); and cards services income of $1.1 million (up 14.4%). The decline in noninterest income relates primarily to net mark-to-market losses on liabilities held at fair value, which were $490,000 for the second quarter of 2010, compared to net mark-to-market gains of $432,000 as of June 30, 2009. The market-to-market gains and losses are the result of interest rate movements that may positively or negatively impact the carrying amount of certain assets and liabilities carried at fair value.

Noninterest expenses for the second quarter 2010 were $24.5 million, relatively flat compared to the same quarter last year. Noninterest expenses for the six months ended June 30, 2010 totaled $49.0 million, an increase of 2.2% over the same period in 2009. FDIC insurance of $857,000 for the second quarter of 2010 is down from $2.2 million reported in the second quarter of 2009. The large variance is due to the FDIC special assessment expensed in the second quarter of 2009. The largest category of noninterest expense is Salary and Wages, which totaled $10.7 million in the second quarter of 2010, an increase of 6.0% from second quarter of 2009.

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 Share and per share data in this press release have been retroactively adjusted to reflect a 10% stock dividend paid on February 15, 2010.

2 Federal Reserve peer ratio as of March 31, 2010, includes banks and bank holding companies with consolidated assets between $3 billion and $10 billion.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

	As of			As of
(In thousands, except share and per share data) (Unaudited)	06/30/2010			12/31/2009
ASSETS
Cash and noninterest bearing balances due from banks	$	47,839		$	43,686
Interest bearing balances due from banks		1,615			1,676
Federal funds sold		15,000			0
Money market funds		100			100
Cash and Cash Equivalents		64,554			45,462

Trading securities, at fair value		26,895			31,718
Available-for-sale securities, at fair value		955,090			928,770
Held-to-maturity securities, fair value of $42,567 at June 30, 2010, and $46,340 at December 31, 2009		41,235			44,825
Loans and leases, net of unearned income and deferred costs and fees		1,900,303			1,914,818
Less: Allowance for loan and lease losses		26,530			24,350
Net Loans and Leases		1,873,773			1,890,468

FHLB and FRB stock		19,330			20,041
Bank premises and equipment, net		46,818			46,650
Corporate owned life insurance		36,680			35,953
Goodwill		41,589			41,589
Other intangible assets, net		4,486			4,864
Accrued interest and other assets		51,198			62,920
Total Assets	$	3,161,648		$	3,153,260

LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market		1,198,065			1,183,145
Time		787,923			794,738
Noninterest bearing		474,235			461,981
Total Deposits		2,460,223			2,439,864

Federal funds purchased and securities sold under agreements to repurchase, including certain amounts at fair value of $5,628 at June 30, 2010, and $5,500 at December 31, 2009		175,336			192,784
Other borrowings, including certain amounts at fair value of $11,825 at June 30, 2010, and $11,335 at December 31, 2009		189,561			208,965
Trust preferred debentures		25,058			25,056
Other liabilities		42,787			41,583
Total Liabilities	$	2,892,965		$	2,908,252

EQUITY
Tompkins Financial Corporation shareholders’ equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued and outstanding: 10,865,911 at June 30, 2010; and 9,785,265 at December 31, 2009		1,087			978
Additional paid-in capital		195,025			155,589
Retained earnings		67,456			92,402
Accumulated other comprehensive income (loss)		5,965			(3,087	)
Treasury stock, at cost – 88,784 shares at June 30, 2010, and 81,723 shares at December 31, 2009		(2,367	)		(2,326	)

Total Tompkins Financial Corporation Shareholders’ Equity		267,166			243,556
Noncontrolling interests		1,517			1,452
Total Equity	$	268,683		$	245,008
Total Liabilities and Equity	$	3,161,648		$	3,153,260

See accompanying notes to unaudited condensed consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended					Six Months Ended
(In thousands, except per share data) (Unaudited)	06/30/2010			06/30/2009		06/30/2010			06/30/2009
INTEREST AND DIVIDEND INCOME
Loans	$	26,750		$	26,499	$	53,369		$	53,176
Due from banks		10			4		22			12
Federal funds sold		6			4		9			8
Money market funds		0			10		0			28
Trading securities		278			345		588			707
Available-for-sale securities		8,794			8,927		17,793			17,570
Held-to-maturity securities		394			483		802			986
FHLB and FRB stock		218			287		501			322
Total Interest and Dividend Income		36,450			36,559		73,084			72,809
INTEREST EXPENSE
Time certificates of deposits of $100,000 or more		1,146			1,314		2,324			2,805
Other deposits		3,502			4,827		7,329			9,960
Federal funds purchased and repurchase agreements		1,308			1,564		2,733			3,129
Trust preferred securities		436			325		803			378
Other borrowings		1,952			2,020		3,845			4,178
Total Interest Expense		8,344			10,050		17,034			20,450
Net Interest Income		28,106			26,509		56,050			52,359
Less: Provision for loan/lease losses		1,408			2,367		3,591			4,403
Net Interest Income After Provision for Loan/Lease Losses		26,698			24,142		52,459			47,956
NONINTEREST INCOME
Investment services income		3,604			3,337		7,341			6,539
Insurance commissions and fees		3,191			3,120		6,357			6,239
Service charges on deposit accounts		2,430			2,271		4,487			4,491
Card services income		1,067			933		2,041			1,723
Mark-to-market gain on trading securities		291			40		381			98
Mark-to-market (loss) gain on liabilities held at fair value		(490	)		432		(618	)		688
Other income		1,180			1,386		2,486			2,667
Net gain on security transactions		58			19		176			26
Total Noninterest Income		11,331			11,538		22,651			22,471
NONINTEREST EXPENSES
Salaries and wages		10,669			10,069		21,008			19,597
Pension and other employee benefits		3,442			3,360		7,354			6,746
Net occupancy expense of premises		1,725			1,774		3,606			3,788
Furniture and fixture expense		1,143			1,128		2,326			2,244
FDIC insurance		857			2,164		1,769			2,518
Amortization of intangible assets		199			235		401			484
Other operating expense		6,481			5,944		12,547			12,586
Total Noninterest Expenses		24,516			24,674		49,011			47,963
Income Before Income Tax Expense		13,513			11,006		26,099			22,464
Income Tax Expense		4,447			3,526		8,585			7,242
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation		9,066			7,480		17,514			15,222
Less: Net income attributable to noncontrolling interests		33			33		65			65
Net Income Attributable to Tompkins Financial Corporation	$	9,033		$	7,447	$	17,449		$	15,157
Basic Earnings Per Share	$	0.84		$	0.70	$	1.62		$	1.42
Diluted Earnings Per Share	$	0.83		$	0.69	$	1.61		$	1.41

Per share data has been retroactively adjusted to reflect 10% stock dividend paid on February 15, 2010

See accompanying notes to unaudited condensed consolidated financial statements.

Average Consolidated Balance Sheet and Net Interest Analysis

	Quarter Ended								Year to Date Period Ended								Year to Date Period Ended
	June 30, 2010								June 30, 2010								June 30, 2009
	Average								Average								Average
(Dollar amounts in thousands)	Balance (QTD)		Interest			Average Yield/Rate			Balance (YTD)		Interest			Average Yield/Rate			Balance (YTD)		Interest			Average Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	36,083	$	10			0.11	%	$	36,979	$	22			0.12	%	$	8,993	$	12			0.27	%
Money market funds		100		0			0.00	%		100		0			0.00	%		16,841		28			0.34	%
Securities (1)
U.S. Government securities		843,247		8,029			3.82	%		835,570		16,248			3.92	%		699,503		15,847			4.57	%
Trading securities		29,168		278			3.82	%		30,218		588			3.92	%		36,725		707			3.88	%
State and municipal (2)		105,222		1,536			5.86	%		105,181		3,109			5.96	%		115,703		3,500			6.10	%
Other securities (2)		17,784		218			4.92	%		18,171		442			4.91	%		21,307		551			5.21	%
Total securities		995,421		10,061			4.05	%		989,140		20,387			4.16	%		873,238		20,605			4.76	%
Federal Funds Sold		13,409		6			0.18	%		11,256		9			0.16	%		8,727		8			0.18	%
FHLB and FRB stock		19,395		218			4.51	%		19,514		501			5.18	%		20,464		322			3.17	%
Loans, net of unearned income (3)
Real estate loans		1,337,693		19,016			5.70	%		1,332,798		37,856			5.73	%		1,264,018		37,583			6.00	%
Commercial loans (2)		458,845		6,283			5.49	%		465,834		12,545			5.43	%		453,652		12,335			5.48	%
Consumer loans		81,550		1,402			6.90	%		82,809		2,862			6.97	%		87,184		2,993			6.92	%
Direct lease financing (2)		11,177		167			5.99	%		11,404		342			6.05	%		13,453		408			6.12	%
Total loans, net of unearned income		1,889,265		26,868			5.70	%		1,892,845		53,605			5.71	%		1,818,307		53,319			5.91	%
Total interest-earning assets		2,953,673		37,163			5.05	%		2,949,834		74,523			5.09	%		2,746,570		74,294			5.45	%
Other assets		227,803								227,459								204,214
Total assets		3,181,476								3,177,293								2,950,784

LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market		1,230,496		1,605			0.52	%		1,229,835		3,395			0.56	%		1,108,743		4,573			0.83	%
Time deposits > $100,000		342,695		1,146			1.34	%		338,998		2,324			1.38	%		283,789		2,805			1.99	%
Time deposits < $100,000		430,810		1,784			1.66	%		430,141		3,657			1.71	%		420,595		4,943			2.37	%
Brokered time deposits < $100,000		27,464		113			1.65	%		32,326		277			1.73	%		42,982		444			2.08	%
Total interest-bearing deposits		2,031,465		4,648			0.92	%		2,031,300		9,653			0.96	%		1,856,109		12,765			1.39	%
Federal funds purchased & securities sold under agreements to repurchase
Repurchase		177,309		1,308			2.96	%		182,502		2,733			3.02	%		186,516		3,129			3.38	%
Other borrowings		190,414		1,952			4.11	%		194,784		3,845			3.98	%		213,780		4,178			3.94	%
Trust preferred debentures		25,057		436			6.98	%		25,057		803			6.46	%		11,318		378			6.73	%
Total interest-bearing liabilities		2,424,245		8,344			1.38	%		2,433,643		17,034			1.41	%		2,267,723		20,450			1.82	%
Noninterest bearing deposits		456,261								448,232								418,110
Accrued expenses and other liabilities		40,773								40,498								38,394
Total liabilities		2,921,279								2,922,373								2,724,227
Tompkins Financial Corporation Shareholders’ equity		258,695								253,436								225,073
Noncontrolling interest		1,502								1,484								1,484
Total equity		260,197								254,920								226,557
Total liabilities and equity	$	3,181,476							$	3,177,293							$	2,950,784
Interest rate spread							3.67	%							3.68	%							3.63	%
Net interest income/margin on earning assets				28,819			3.91	%				57,489			3.93	%				53,844			3.95	%
Tax Equivalent Adjustment				(713	)							(1,439	)							(1,485	)
Net interest income per consolidated financial statements			$	28,106							$	56,050							$	52,359

(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, 2009.

Tompkins Financial Corporation - Summary Financial Data (Unaudited)

(In thousands,	Quarter-Ended										Year-Ended
except per share data)	Jun-10		Mar-10		Dec-09		Sep-09		Jun-09		Dec-09

Period End Balance Sheet
Securities	$	1,023,220	$	1,026,301	$	1,005,313	$	908,765	$	903,559	$	1,005,313
Loans and leases, net of unearned income and deferred costs and fees		1,900,303		1,887,038		1,914,818		1,882,321		1,841,198		1,914,818
Allowance for loan and lease losses		26,530		25,366		24,350		22,800		21,319		24,350
Total assets		3,161,648		3,206,763		3,153,260		3,088,039		2,968,057		3,153,260
Total deposits		2,460,223		2,512,201		2,439,864		2,397,431		2,288,809		2,439,864
Federal funds purchased and securities sold under agreements to repurchase		175,336		181,255		192,784		192,099		189,993		192,784
Other borrowings		189,561		190,545		208,965		194,795		194,754		208,965
Trust preferred debentures		25,058		25,057		25,056		23,018		23,017		25,056
Total equity		268,683		254,444		245,008		241,647		229,308		245,008

Average Balance Sheet
Average earning assets	$	2,953,673	$	2,945,953	$	2,920,269	$	2,792,319	$	2,778,425	$	2,801,884
Average assets		3,181,476		3,173,064		3,132,599		2,999,961		2,982,077		3,009,007
Average interest-bearing liabilities		2,424,245		2,443,145		2,408,997		2,289,144		2,295,454		2,308,731
Average equity		260,197		249,586		245,176		233,535		230,117		233,009

Share data
Weighted average shares outstanding (basic) [1]		10,818,218		10,724,644		10,702,447		10,693,698		10,679,719		10,686,989
Weighted average shares outstanding (diluted) [1]		10,876,421		10,776,934		10,752,737		10,763,374		10,763,784		10,759,302
Period-end shares outstanding		10,830,001		10,793,573		9,752,619		9,722,834		9,720,440		9,752,619
Book value per share [1]		24.81		23.57		22.84		22.59		21.45		22.84

Income Statement
Net interest income	$	28,106	$	27,944	$	27,897	$	26,780	$	26,509	$	107,037
Provision for loan/lease losses		1,408		2,183		2,758		2,127		2,367		9,288
Noninterest income		11,331		11,320		12,142		11,600		11,538		46,213
Noninterest expense		24,516		24,494		24,931		23,723		24,674		96,617
Income tax expense		4,447		4,138		4,104		4,037		3,526		15,383
Net income attributable to Tompkins Financial		9,033		8,416		8,214		8,460		7,447		31,831
Noncontrolling interests		33		33		32		33		33		131
Basic earnings per share [1]	$	0.84	$	0.78	$	0.77	$	0.79	$	0.70	$	2.98
Diluted earnings per share [1]	$	0.83	$	0.78	$	0.76	$	0.79	$	0.69	$	2.96

Asset Quality
Net charge-offs		244		1,167		1,208		646		1,028		3,610
Nonaccrual loans and leases		33,645		29,521		31,289		25,837		24,662		31,289
Loans and leases 90 days past due and accruing		1,758		51		369		579		1,073		369
Troubled debt restructurings not included above		3,264		3,703		3,265		0		0		3,265
Total nonperforming loans and leases		38,667		33,275		34,923		26,416		25,735		34,923
OREO		1,638		558		299		440		68		299
Nonperforming assets		40,305		33,833		35,222		26,856		25,803		35,222

	Quarter-Ended										Year-Ended
RATIO ANALYSIS	Jun-10		Mar-10		Dec-09		Sep-09		Jun-09		Dec-09
Credit Quality
Net loan and lease losses/ average loans and leases *	0.15	%	0.25	%	0.25	%	0.14	%	0.23	%	0.20	%
Nonperforming loans and leases/loans and leases	2.03	%	1.76	%	1.82	%	1.40	%	1.40	%	1.82	%
Nonperforming assets/assets	1.28	%	1.06	%	1.12	%	0.87	%	0.87	%	1.12	%
Allowance/nonperforming loans and leases	68.61	%	76.23	%	69.72	%	86.31	%	82.84	%	69.72	%
Allowance/loans and leases	1.40	%	1.34	%	1.27	%	1.21	%	1.16	%	1.27	%

Capital Adequacy (period-end)
Tier I capital / average assets	7.77	%	7.56	%	7.44	%	7.44	%	7.37	%	7.44	%
Total capital / risk-weighted assets	13.10	%	12.56	%	12.14	%	11.89	%	11.74	%	12.14	%

Profitability
Return on average assets *	1.14	%	1.08	%	1.04	%	1.12	%	1.00	%	1.06	%
Return on average equity *	13.92	%	13.68	%	13.29	%	14.37	%	12.98	%	13.66	%
Net interest margin (TE) *	3.91	%	3.95	%	3.89	%	3.91	%	3.93	%	3.92	%

* Quarterly ratios have been annualized

	Quarter-Ended										Year-Ended
Non-GAAP Disclosure	Jun-10		Mar-10		Dec-09		Sep-09		Jun-09		Dec-09
Reported net income	$	9,033	$	8,416	$	8,214	$	8,460	$	7,447	$	31,831
Adjustments:
FDIC special insurance assessment (after-tax)		0		0		0		0		822		822
Subtotal adjustments		0		0		0		0		822		822
Adjusted net income		9,033		8,416		8,214		8,460		8,269		32,653
Weighted average shares outstanding (diluted)		10,876,421		10,776,934		10,752,737		10,763,374		10,763,794		10,759,520
Adjusted diluted earnings per share	$	0.83	$	0.78	$	0.76	$	0.79	$	0.77	$	3.03

	Year-to-date period ended
Non-GAAP Disclosure	Jun-10		Jun-09
Reported net income	$	17,449	$	15,157
Adjustments:
FDIC special insurance assessment (after-tax)		0		822
Subtotal adjustments		0		822
Adjusted net income		17,449		15,979
Weighted average shares outstanding (diluted)[1]		10,819,898		10,760,371
Adjusted diluted earnings per share	$	1.61	$	1.48

[1] Weighted average shares and per share data in this press release have been retroactively adjusted to reflect a 10% stock dividend paid on February 15, 2010.