TOMPKINS FINL CORP : CORRECTING and REPLACING Tompkins Financial Corporation Reports Fourth Quarter Operating Results

Please replace the release due to edits to financial tables: text has been changed in the "CONDENSED CONSOLIDATED STATEMENTS OF CONDITION" and a figure has been changed in the "Summary Financial Data."

The corrected release reads:

TOMPKINS FINANCIAL CORPORATION REPORTS FOURTH QUARTER OPERATING RESULTS

Tompkins Financial Corporation (TMP-NYSE MKT LLC)

Tompkins Financial Corporation today released operating results and selected other financial information for the three and twelve month periods ended December 31, 2012. The fourth quarter represents the first full quarter reflecting results inclusive of the VIST Financial Corporation acquisition, which closed on August 1, 2012.

Stephen S. Romaine, President and CEO commented, "2012 was an eventful year for our Company. The acquisition of VIST Financial gives us exciting new growth opportunities in a new geography with attractive demographics. Results for the year to date and the fourth quarter were negatively impacted by merger related costs. Excluding those costs, our per share earnings performance for the two quarters that have included results with VIST has been among the best of any six month period in our Company's long history."

SUMMARY HIGHLIGHTS

Net Income for the fourth quarter of 2012 was $11.2 million, up from $9.4 million in the same period in 2011. Despite the rise in net income, diluted earnings per share of $0.77 for the quarter was down 8.3% from the fourth quarter of 2011 due to the greater number shares outstanding in 2012 as a result of shares issued to complete the VIST acquisition. Net income was reduced by after-tax merger related expenses of $462,000 in the fourth quarter of 2012 and $152,000 in the fourth quarter of 2011. Non-GAAP operating income, which excludes merger related expenses, was $11.6 million for the quarter, or $0.81 diluted operating earnings per share. This represents a decrease of 5.8% from the $0.86 diluted operating earnings per share reported for the fourth quarter of 2011. The decrease in current period operating performance is attributable to higher provision expense primarily related to loan charge-offs in the Hudson Valley Region. A more detailed discussion of credit quality is included later in this press release.

Net income for the year ended December 31, 2012 was $31.3 million, down from $35.4 million in 2011. Diluted earnings per share of $2.43 for the full year in 2012 represents a decline from diluted earnings per share of $3.20 in 2011. The decline from 2011 is primarily due to the $9.7 million ($0.76 diluted per share) in after tax merger related expenses included in 2012 results, versus $152,000 ($0.01 per share) in after tax merger related expenses included in 2011 results; as well as the increase in weighted average shares outstanding.

NET INTEREST INCOME

Net interest income for the fourth quarter of 2012 was $41.8 million, compared to $28.0 million for the same period in 2011. The increase in 2012 reflects the addition of VIST Bank, which was acquired on August 1, 2012. The net interest margin for the fourth quarter of 2012 was 3.83%, an improvement from the 3.66% margin reported in the third quarter of 2012, and from the 3.62% margin reported in the fourth quarter of 2011. The margin improvement in the most recent two quarters benefited from the inclusion of VIST Bank into the Company's combined results. The paydown of certain higher cost borrowings and non-core time deposits also helped the margin in the fourth quarter of 2012.

NONINTEREST INCOME

Noninterest income for the fourth quarter of 2012 was $15.6 million, up 39.4% over the same period in 2011. The largest category of improvement was insurance commissions and fees, which nearly doubled as a result of the VIST acquisition. The increase was partially offset by lower service charges on deposit accounts, which were impacted by regulatory changes implemented in the first quarter of 2012. Improvement in other income benefited from higher loan related fees (up $334,000) and gains on the sale of loans (up $187,000). Fourth quarter noninterest income also reflected $499,000 in losses on the sale of investments, which were used to pay down certain higher cost borrowings and non-core time deposits.

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter of 2012 was $38.2 million, up 57.8% from the same period last year. The increase was mainly a result of the VIST acquisition and additional expenses related to the integration of VIST into the Company's operations beginning in the third quarter of this year. Mr. Romaine added, "We are pleased that our system conversion for VIST Bank was successfully completed in December 2012 and we are on track to realize the cost savings from the integration that were contemplated when the merger was announced."

ASSET QUALITY

Asset quality trends were generally positive during the quarter, despite a spike in the level of loan charge-offs. Mr. Romaine stated, "The charge-offs during the quarter consisted of a handful of loans that had previously been reported as nonperforming, classified and impaired. While deterioration in these credits during the fourth quarter resulted in elevated charge-offs, the result is that the overall risk profile of the loan portfolio has improved, as some of the most risky loans have now been removed from the balance sheet."

The ratio of nonperforming assets to total assets of 0.92% at December 31, 2012, has improved from a ratio of 1.26% as of the year ending December 31, 2011 and remains well below the most recent peer averages of 2.21% published the Federal Reserve¹. The balance of originated loans classified as either Substandard or Special Mention improved for 2 consecutive quarters. The majority of the improvement from the third quarter of 2012 came in the more severe Substandard category, which declined by approximately $9.3 million. Although there was an increase in loans classified as Substandard or Special Mention in the acquired loan portfolio, the changes in risk ratings are not impactful to the credit marks that were recorded at the time of acquisition. Furthermore, the level of past due loans in the acquired portfolio have remained relatively steady between periods.

Provision for loan and lease losses was $5.7 million for the fourth quarter of 2012, up from $1.0 million for the third quarter of 2012, and $1.2 million in the fourth quarter of 2011. The increased provision was largely due to $7.6 million in net charge-offs during the quarter, which is up from $1.3 million in the third quarter of 2012, and $1.4 million in the fourth quarter 2011. Despite the elevated charge-offs in the most recent quarter, net charge-offs for the full year in 2012, represented only 0.49% of average total loans, which compares favorably to the most recent Federal Reserve peer ratio¹ of 0.64%.

The Company's allowance for loan and lease losses totaled $24.6 million at December 31, 2012, which represented 1.16% of total originated loans, compared to an allowance for loan and lease losses of $27.6 million, representing 1.39% of total originated loans at December 31, 2011. The allowance for loan and lease losses covered 70.05% of originated nonperforming loans and leases as of December 31, 2012, up from 69.01% at September 30, 2012, and 66.66% at December 31, 2011.

CAPITAL POSITION

Capital ratios remain well above the regulatory well capitalized minimums. Tier 1 capital as a percentage of average assets at December 31, 2012 was 7.95% and the ratio of total capital to risk-weighted assets was 12.94%.

ABOUT TOMPKINS FINANCIAL CORPORATION

Tompkins Financial Corporation is a financial services company with $4.8 billion in assets 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, The Bank of Castile, Mahopac National Bank, VIST Bank, Tompkins Insurance Agencies, Inc., and Tompkins Financial Advisors. For more information on Tompkins Financial, visit www.tompkinsfinancial.com.

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 a 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" tables for Non-GAAP related calculations.

"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				12/31/2012			12/31/2011
Cash and noninterest bearing balances due from banks			$	117,448		$	47,297
Interest bearing balances due from banks				1,482			2,170
Money market funds				0			100
	Cash and Cash Equivalents			118,930			49,567
Trading securities, at fair value				16,450			19,598
Available-for-sale securities, at fair value				1,393,340			1,143,546
Held-to-maturity securities, fair value of $25,163 at December 31, 2012, and $27,255
at December 31, 2011				24,062			26,673
Originated loans and leases, net of unearned income and deferred costs and fees (2)				2,133,106			1,981,849
Less: Allowance for originated loan and lease losses				24,643			27,593
Acquired loans and leases, covered (3)				37,600			0
Acquired loans and leases, non-covered (3)				783,904			0
	Net Loans and Leases			2,929,967			1,954,256
FDIC Idemnification Asset				4,385			0
Federal Home Loan Bank stock and Federal Reserve Bank stock				19,388			19,070
Bank premises and equipment, net				54,581			44,712
Corporate owned life insurance				65,102			43,044
Goodwill				92,305			43,898
Other intangible assets, net				18,643			4,096
Accrued interest and other assets				100,044			51,788
	Total Assets		$	4,837,197		$	3,400,248
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market				2,144,367			1,356,870
Time				973,883			687,321
Noninterest bearing				831,919			616,373
	Total Deposits			3,950,169			2,660,564
Federal funds purchased and securities sold under agreements to repurchase				213,973			169,090
Other borrowings, including certain amounts at fair value of $11,847 at December 31, 2012
and $12,093 at December 31, 2011				111,848			186,075
Trust preferred debentures				43,668			25,065
Other liabilities				76,179			60,311
	Total Liabilities		$	4,395,837		$	3,101,105
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $.10 per share: Authorized 25,000,000 shares; Issued:
14,426,711 at December 31, 2012; and 11,159,466 at December 31, 2011				1,443			1,116
Additional paid-in capital				334,649			206,395
Retained earnings				108,709			96,445
Accumulated other comprehensive loss				(2,106)			(3,677)
Treasury stock, at cost - 100,054 shares at December 31, 2012, and 95,105 shares
at December 31, 2011				(2,787)			(2,588)
	Total Tompkins Financial Corporation Shareholders' Equity			439,908			297,691
Noncontrolling interests				1,452			1,452
	Total Equity		$	441,360		$	299,143
	Total Liabilities and Equity		$	4,837,197		$	3,400,248

TOMPKINS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
			Three Months Ended						Twelve Months Ended
(In thousands, except per share data) (Unaudited)			12/31/2012			12/31/2011			12/31/2012			12/31/2011
INTEREST AND DIVIDEND INCOME
Loans		$	39,952		$	26,280		$	124,662		$	103,998
Due from banks			19			1			32			12
Federal funds sold			0			2			2			7
Trading securities			175			205			744			873
Available-for-sale securities			8,214			6,996			31,232			30,103
Held-to-maturity securities			203			240			860			1,185
Federal Home Loan Bank stock and Federal Reserve Bank stock			205			189			824			910
Total Interest and Dividend Income			48,768			33,913			158,356			137,088
INTEREST EXPENSE
Interest on deposits			3,805			2,914			12,231			13,087
Federal funds purchased and securities sold under agreements to
repurchase			1,111			1,129			4,451			4,872
Trust preferred debentures			798			382			2,094			1,580
Other borrowings			1,205			1,489			5,437			6,143
Total Interest Expense			6,919			5,914			24,213			25,682
Net Interest Income			41,849			27,999			134,143			111,406
Less: Provision for loan and lease losses			5,659			1,160			8,837			8,945
Net Interest Income After Provision for Loan and Lease Losses			36,190			26,839			125,306			102,461
NONINTEREST INCOME
Investment services income			3,836			3,196			14,340			14,287
Insurance commissions and fees			6,237			3,136			19,421			13,542
Service charges on deposit accounts			2,076			2,235			7,441			8,491
Card services income			1,678			1,275			6,030			5,060
Mark-to-market (loss) gain on trading securities			(134)			(108)			(332)			62
Mark-to-market gain (loss) on liabilities held at fair value			108			25			246			(464)
Net other-than-temporary impairment losses			(76)			(65)			(196)			(65)
Other income			2,382			1,488			7,534			6,705
Net (loss) gain on securities transactions			(499)			15			324			396
Total Noninterest Income			15,608			11,197			54,808			48,014
NONINTEREST EXPENSES
Salaries and wages			15,427			10,914			51,700			44,140
Pension and other employee benefits			4,827			3,213			18,075			14,275
Net occupancy expense of premises			2,899			1,796			8,969			7,117
Furniture and fixture expense			1,416			1,138			4,996			4,463
FDIC insurance			844			471			2,685			2,527
Amortization of intangible assets			580			136			1,264			589
Merger and integration related expenses			770			174			15,584			174
Other operating expense			11,425			6,358			34,335			25,267
Total Noninterest Expenses			38,188			24,200			137,608			98,552
Income Before Income Tax Expense			13,610			13,836			42,506			51,923
Income Tax Expense			2,416			4,417			11,090			16,373
Net Income attributable to Noncontrolling Interests and Tompkins Financial Corporation			11,194			9,419			31,416			35,550
Less: Net income attributable to noncontrolling interests			33			32			131			131
Net Income Attributable to Tompkins Financial Corporation		$	11,161		$	9,387		$	31,285		$	35,419
Basic Earnings Per Share		$	0.78		$	0.84		$	2.44		$	3.21
Diluted Earnings Per Share		$	0.77		$	0.84		$	2.43		$	3.20

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
				Quarter Ended								Year to Date Period Ended								Year to Date Period Ended
				December 31, 2012								December 31, 2012								December 31, 2011
				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		$	27,905		$	19		0.27%		$	21,442		$	32		0.15%		$	12,717		$	12		0.09%
	Money market funds			-			-		0.00%			18			-		0.00%			100			-		0.00%
	Securities (4)
		U.S. Government securities		1,309,625			7,457		2.27%			1,205,759			28,547		2.37%			969,303			27,504		2.84%
		Trading securities		17,080			175		4.08%			18,162			744		4.10%			21,262			873		4.11%
		State and municipal (5)		105,944			1,352		5.08%			95,095			4,946		5.20%			95,039			5,143		5.41%
		Other securities		11,745			140		4.74%			11,766			544		4.62%			13,971			648		4.64%
		Total securities		1,444,394			9,124		2.51%			1,330,782			34,781		2.61%			1,099,575			34,168		3.11%
	Federal Funds Sold			-			-		0.00%			1,837			2		0.11%			5,837			7		0.12%
	FHLBNY and FRB stock			19,587			205		4.16%			18,479			824		4.46%			17,992			910		5.06%
	Total loans, net of unearned income (6)			2,939,812			40,274		5.45%			2,382,109			125,541		5.27%			1,928,540			104,548		5.42%
	Total interest-earning assets			4,431,698			49,622		4.45%			3,754,667			161,180		4.29%			3,064,761			139,645		4.56%
Other assets				469,676								337,806								230,221
	Total assets			4,901,374								4,092,473								3,294,982
LIABILITIES & EQUITY
Deposits
	Interest-bearing deposits
		Interest bearing checking, savings, & money market		2,166,739			1,604		0.29%			1,750,444			4,854		0.28%			1,350,659			4,741		0.35%
		Time deposits		1,022,807			2,201		0.86%			846,166			7,377		0.87%			717,514			8,346		1.16%
		Total interest-bearing deposits		3,189,546			3,805		0.47%			2,596,610			12,231		0.47%			2,068,173			13,087		0.63%
Federal funds purchased & securities sold under agreements
		to repurchase		216,848			1,111		2.04%			200,906			4,451		2.22%			173,692			4,872		2.80%
Other borrowings				113,680			1,205		4.22%			132,746			5,437		4.10%			155,650			6,143		3.95%
Trust preferred debentures				43,657			798		7.27%			32,835			2,094		6.38%			25,062			1,580		6.30%
	Total interest-bearing liabilities			3,563,731			6,919		0.77%			2,963,097			24,213		0.82%			2,422,577			25,682		1.06%
Noninterest bearing deposits				786,867								681,260								539,917
Accrued expenses and other liabilities				107,184								71,226								37,868
	Total liabilities			4,457,782								3,715,583								3,000,362
Tompkins Financial Corporation Shareholders' equity				442,051								375,378								292,845
Noncontrolling interest				1,541								1,512								1,775
	Total equity			443,592								376,890								294,620
	Total liabilities and equity		$	4,901,374							$	4,092,473							$	3,294,982
Interest rate spread									3.68%								3.47%								3.50%
	Net interest income/margin on earning assets						42,703		3.83%						136,967		3.65%						113,963		3.72%
Tax Equivalent Adjustment							(854)								(2,824)								(2,557)
	Net interest income per consolidated financial statements					$	41,849							$	134,143							$	111,406

Tompkins Financial Corporation - Summary Financial Data (Unaudited) (In thousands, except per share data)
			Quarter-Ended															Year-Ended
			Dec-12			Sep-12			Jun-12			Mar-12				Dec-11			Dec-12
Period End Balance Sheet
Securities		$	1,433,852		$	1,516,913		$	1,228,143		$	1,285,685		$		1,189,817		$	1,433,852
Originated loans and leases, net of unearned income and deferred costs and fees (2)			2,133,106			2,060,539			2,019,681			1,977,569				1,981,849			2,133,106
Allowance for originated loan and lease losses			24,643			26,632			26,865			26,948				27,593			24,643
Acquired loans and leases (3)			821,504			869,211			0			0				0			821,504
Total assets			4,837,197			4,924,786			3,482,669			3,546,694				3,400,248			4,837,197
Total deposits			3,950,169			4,037,644			2,765,093			2,859,436				2,660,564			3,950,169
Federal funds purchased and securities sold under agreements to repurchase			213,973			206,996			161,662			169,456				169,090			213,973
Other borrowings			111,848			125,461			121,934			132,884				186,075			111,848
Trust preferred debentures			43,668			43,651			25,067			25,066				25,065			43,668
Shareholders' equity			441,360			440,950			353,700			305,967				299,143			441,360
Average Balance Sheet
Average earning assets		$	4,431,698		$	4,087,264		$	3,278,519		$	3,211,533		$		3,131,051		$	3,754,667
Average assets			4,901,374			4,450,013			3,539,170			3,464,917				3,368,135			4,092,473
Average interest-bearing liabilities			3,563,731			3,248,839			2,521,285			2,507,146				2,435,326			2,963,097
Average equity			443,592			410,300			349,021			303,546				307,539			376,890
Share data
Weighted average shares outstanding (basic)			14,332,672			13,580,771			12,146,622			11,103,192				11,074,330			12,797,173
Weighted average shares outstanding (diluted)			14,374,368			13,630,464			12,166,417			11,147,490				11,104,623			12,836,043
Period-end shares outstanding			14,390,801			14,358,230			12,223,790			11,197,370				11,123,556			14,390,801
Book value per share			30.67			30.71			28.94			27.32				26.89			30.67
Tangible book value per share (Non-GAAP)			22.96			22.71			24.96		22.99					22.58			22.96
Income Statement
Net interest income		$	41,849		$	36,743		$	28,110		$	27,441		$		27,999		$	134,143
Provision for loan/lease losses			5,659			1,042			1,011			1,125				1,160			8,837
Noninterest income			15,608			14,773			12,766			11,661				11,197			54,808
Noninterest expense			38,188			46,194			26,855			26,371				24,200			137,608
Income tax expense			2,416			761			4,151			3,762				4,417			11,090
Net income attributable to Tompkins Financial Corporation			11,161			3,487			8,826			7,811				9,387			31,285
Noncontrolling interests			33			32			33			33				32			131
Basic earnings per share (9)		$	0.78		$	0.26		$	0.72		$	0.70		$		0.84		$	2.44
Diluted earnings per share (9)		$	0.77		$	0.25		$	0.72		$	0.70		$		0.84		$	2.43

	Quarter-Ended																																			Year-Ended
	Dec-12							Sep-12							Jun-12							Mar-12							Dec-11							Dec-12
Asset Quality
Nonaccrual loans and leases (7)	$			37,740				$			36,996				$			36,749				$			38,455				$			39,588				$			37,740
Loans and leases 90 days past due and accruing (7)				257							126							321							1,552							1,380							257
Troubled debt restructurings not included above (7)				1,532							1,468							1,507							423							428							1,532
Total nonperforming loans and leases (7)				39,529							38,590							38,577							40,430							41,396							39,529
OREO (8)				4,862							4,675							2,161							1,906							1,334							4,862
Total nonperforming assets				44,391							43,265							40,738							42,336							42,730							44,391
Delinquency- Originated loan and lease portfolio
Loans and leases 30-89 days past due and accruing (2)	$			8,818				$			9,412				$			10,149				$			12,080				$			13,171				$			8,818
Loans and leases 90 days past due and accruing (2)				257							126							321							1,552							1,380							257
Nonaccrual loans and leases (2)				33,388							36,996							36,749							38,455							39,588							33,388
Total past due and accruing and nonaccrual originated loans (2)				42,463							46,534							47,219							52,087							54,139							42,463
Delinquency- Acquired loan and lease portfolio
Covered loans and leases 30-89 days past due and accruing (3)(7)				1,014							669							0							0							0							1,014
Covered loans and leases 90 days or more past due and accruing (3)(7)				4,754							2,837							0							0							0							4,754
Non-covered loans and leases 30-89 days past due and accruing (3)(7)				4,249							5,848							0							0							0							4,249
Non-covered loans and leases 90 days or more past due and accruing (3)(7)				14,506							19,339							0							0							0							14,506
Non-covered Nonaccrual loans and leases (3)				4,352							0							0							0							0							4,352
Total past due and accruing and nonaccrual acquired loans and leases				28,875							28,693							0							0							0							28,875
Allowance for Loan Losses - Originated loan and lease portfolio
Balance at beginning of period	$			26,632				$			26,865				$			26,948				$			27,593				$			27,878				$			27,593
Provision for loan and lease losses				5,659							1,042							1,011							1,125							1,160							8,837
Net loan and lease charge-offs				7,648							1,275							1,094							1,770							1,445							11,787
Allowance for loan and lease losses (originated loan portfolio)				24,643							26,632							26,865							26,948							27,593							24,643
Allowance for loan and lease losses (acquired loan portfolio)				0							0							0							0							0							0
Total allowance for loan and lease losses				24,643							26,632							26,865							26,948							27,593							24,643
Loan Classifications - Originated portfolio
Special Mention	$			56,342				$			58,598				$			63,652				$			62,649				$			52,156				$			56,342
Substandard				45,083							54,383							58,185							58,272							72,920							45,083
Doubtful				0							494							588							1,344							1,494							0
Loan Classifications - Acquired portfolio
Special Mention				25,381							17,743							0							0							0							25,381
Substandard				45,207							39,860							0							0							0							45,207

							Quarter-Ended																																							Year-Ended
							Dec-12							Sep-12						Jun-12										Mar-12										Dec-11						Dec-12
RATIO ANALYSIS
Credit Quality
Nonperforming originated loans and leases/total originated loans and leases (2)(7)							1.65%							1.87%						1.91%										2.04%										2.09%						1.65%
Nonperforming assets/total assets							0.92%							0.88%						1.17%										1.19%										1.26%						0.92%
Allowance for loan and lease losses/total originated loans and leases							1.16%							1.29%						1.33%										1.36%										1.39%						1.16%
Allowance/nonperforming loans and leases							62.34%							69.01%						69.75%										66.65%										66.65%						62.34%
Net loan and lease losses (annualized)/total average loans and leases							1.03%							0.19%						0.22%										0.36%										0.29%						0.49%
Capital Adequacy (period-end)
Tier I capital / average assets							7.95%							8.50%						9.53%										8.46%										8.51%						7.95%
Total capital / risk-weighted assets							12.94%							12.42%						16.22%										14.37%										14.17%						12.94%
Tangible Common Equity / Tangible Assets							6.99%						6.78%							8.88%										7.36%										7.49%						6.99%
Profitability
Return on average assets *							0.91%							0.31%						1.00%										0.91%										1.11%						0.76%
Return on average equity *							10.01%							3.38%						10.17%										10.35%										12.07%						8.30%
Net interest margin (TE)							3.83%							3.66%						3.52%										3.51%										3.62%						3.65%
* Quarterly ratios have been annualized

Non-GAAP Disclosure
Reported net income (GAAP)		$	11,161		$	3,487		$	8,826			$	7,811		$	9,387			$	31,285
Adjustments (net of tax):
Accrual adjustment VISA			0			0			(243)				0			0				(243)
Merger related expenses			462			8,424			703				75			152				9,664
Subtotal adjustments			462			8,424			460				75			152				9,421
Net operating income (Non-GAAP)			11,623			11,911			9,286				7,886			9,539				40,706
Weighted average shares outstanding (diluted)			14,374,368			13,630,464			12,166,417				11,147,490			11,104,623				12,836,043
Adjusted diluted earnings per share (Non-GAAP)		$	0.81		$	0.87		$	0.76			$	0.71		$	0.86			$	3.17
Non-GAAP Disclosure
Reported net income (GAAP)		$	11,161		$	3,487		$	8,826			$	7,811		$	9,387			$	31,285
Merger related expenses (net of tax)			462			8,424			703				75			152				9,664
Net operating income (Non-GAAP)		$	11,623		$	11,911		$	9,529			$	7,886		$	9,539			$	40,949
Amortization of intangibles, (net of tax)			348			256			74				80			81				758
Adjusted net operating income (Non-GAAP)			11,971			12,167			9,603				7,966			9,620				41,707
Average total shareholders' equity			443,592			410,300			349,021				303,546			307,539				376,890
Less: Average goodwill and intangibles			114,644			92,789			48,665				47,922			48,195				76,149
Average tangible shareholders' equity (Non-GAAP)			328,948			317,511			300,356				255,624			259,344				300,741
Adjusted operating return on shareholders' tangible equity (annualized) (Non-GAAP)			14.56%			15.24%			12.86%				12.53%			14.71%				13.87%

															Quarter-Ended																			Year-Ended
															Dec-12				Sep-12				Jun-12				Mar-12				Dec-11			Dec-12
Non-GAAP Disclosure
Total shareholders' equity (GAAP)													$	441,360			$	440,950			$	353,700			$	305,967			$	299,143			$	441,360
Less: goodwill and intangibles														110,947				114,920				48,652				48,569				47,994				110,947
Tangible shareholders' equity (Non-GAAP)														330,413				326,030				305,048				257,398				251,149				330,413
Ending shares outstanding														14,390,801				14,358,230				12,223,790				11,197,370				11,123,556				14,390,801
Tangible book value per share (Non-GAAP)														22.96				22.71				24.96				22.99				22.58				22.96

Non-GAAP Disclosure													Year-to-date period ended
													Dec-12			Dec-11
Reported net income (GAAP)													$	31,285		$	35,419
Adjustments (net of tax):
Accrual adjustment VISA														(243)			0
Merger related expenses														9,664			152
Subtotal adjustments														9,421			152
Net operating income (Non-GAAP)														40,706			35,571
Weighted average shares outstanding (diluted)														12,836,043			11,035,384
Adjusted diluted earnings per share (Non-GAAP)													$	3.17		$	3.22

(1) Federal Reserve peer ratio as of September 30, 2012, 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. 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. Because acquired loans are initially recorded at an amount estimated to be collectible, losses on such loans, when incurred, are first applied against the non-accretable difference established in purchase accounting and then to any allowance of loan losses recognized subsequent to acquisition. "Covered Loans" are loans for which the Company will share losses with the FDIC and consist of loans VIST Bank acquired as part of an FDIC-assisted transaction during the fourth quarter of 2010.
(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, 2011.
(7) Acquired loans and leases are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, as we can reasonably estimate the timing and amount of the expected cash flows on the acquired loans and we expect to fully collect the new carrying value of the loans. As such, we do not consider the loans to be nonaccrual or nonperforming.
(8) Includes all other real estate owned, including those balances acquired through business combinations.
(9) 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.

Tompkins Financial Corporation
Stephen S. Romaine, President & CEO
Francis M. Fetsko, Executive VP & CFO
607-273-3210