Codorus Valley Bancorp Inc. announced earnings available to common shareholders of $831,000 or $0.21 per share ($0.21 diluted) for the quarter ended September 30, 2009, compared to $1,130,000 or $0.28 per share ($0.28 diluted) earned in the third quarter of 2008. Interest income was $10.4 million against $9.2 million for the same period a year ago. Return on average equity was 6.12% against 8.99% for the same period a year ago. Return on average assets was 0.50% against 0.70% for the same period a year ago. For the first nine months ended September 30, 2009, earnings available to common shareholders were $1,620,000 or $0.40 per share ($0.40 diluted), compared to $3,624,000 or $0.92 per share ($0.91 diluted) for the same period in 2008. The decrease in earnings for the current quarter and year-to-date periods was due in part to an increase in the provision for loan losses, which resulted from reserve allocations for impaired commercial real estate loans, continued uncertainty in the economy, softness in the real estate market and a significant increase in new business loans. Interest income was $29.6 million against $27.4 million for the same period a year ago. Return on average equity was 4.47% against 9.72% for the same period a year ago. Return on average assets was 0.38% against 0.78% for the same period a year ago. Codorus Valley's Board of Directors declared a regular quarterly cash dividend of $0.03 per common share, payable on or before November 10, 2009 to shareholders of record on October 27, 2009. This dividend was the same amount paid in the prior quarter.

On October 1, 2009, Codorus Valley Bancorp Inc. was notified that the audit practice of Beard Miller Company LLP an independent registered public accounting firm, was combined with ParenteBeard, LLC in a transaction pursuant to which Beard combined its operations with ParenteBeard and certain of the professional staff and partners of Beard joined ParenteBeard either as employees or partners of ParenteBeard. On October 1, 2009, Beard resigned as the auditors of the company and with the approval of the Audit Committee of the company's Board of Directors, ParenteBeard was engaged as its independent registered public accounting firm.

Codorus Valley Bancorp Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company has posted earnings available to common shareholders of $49,000 or $0.01 diluted per share, compared to the $971,000 or $0.24 diluted per share earned in the second quarter of 2008. The decrease in earnings for the second quarter was attributable to a substantial increase in the provision for loan losses, due to: allocations deemed necessary for commercial real estate loans, continued uncertainty in the economy, softness in the real estate market and a significant increase in new loans closed during this reporting period. Other items affecting the Corporation were an increase in operating expenses, particularly relating to Federal Deposit Insurance Corporation (FDIC) deposit insurance premiums. Income before income tax was $16,000 compared to $1,195,000 for the same period a year ago. Net interest income was $5,692,000 compared to $5,102,000 for the same period a year ago. Book value per common share was $12.88 compared to $12.44 for the same period a year ago. Return on average assets was 0.14% compared to 0.63% for the same period a year ago. Return on average equity was 1.66% compared to 7.75% for the same period a year ago. For the first six months of 2009, earnings available to common shareholders were $789,000 or $0.20 diluted per share, compared to $2,494,000 or $0.63 diluted per share for the first half of 2008. Income before income tax was $883,000 compared to $3,260,000 for the same period a year ago. Net interest income was $10,788,000 compared to $10,543,000 for the same period a year ago. Book value per common share $12.88 compared to $12.44 for the same period a year ago. Return on average assets was 0.31% compared to 0.82% for the same period a year ago. Return on average equity was 3.64% compared to 10.08% for the same period a year ago. On July 21, 2009, the company's Board of Directors declared a regular quarterly cash dividend of $0.03 per common share, payable on or before August 11, 2009 to shareholders of record July 28, 2009. The dividend was lowered from the $0.08 per common share paid in the prior quarter as a result of the decline in earnings, to preserve capital for balance sheet growth and to prepare the Corporation for the uncertainties caused by a prolonged economic recession.