Penseco Financial Services Corporation reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. The company reported an increase in net income of $853,000 or 38.0% for the three months ended September 30, 2009 to $3,095,000 or $0.94 per share compared with $2,242,000 or $1.04 per share from the year ago period. The increase in net income was primarily attributed to the Merger with Old Forge Bank, which was completed on April 1, 2009. Net interest income increased $2,315,000 or 39.7% from $5,828,000 to $8,143,000 largely due to an increased loan portfolio of $155.4 million from Old Forge Bank. Core net income increased $853,000 or 38.0% due to higher earning assets related to the Merger. Return on average assets and return on average equity was 1.44% and 10.82% respectively, for the three months ending September 30, 2009, versus 1.41% and 12.24% respectively, for the same period last year. Total interest income was $10,745,000 and income before income taxes was $3,907,000 against total interest income of $8,566,000 and income before income taxes of $2,821,000 for the same period last year. The company reported a decrease in net income of $722,000 for the nine months ended September 30, 2009 to $6,405,000 or $2.21 per weighted average share compared with $7,127,000 or $3.32 per share from the year ago period. The decrease in net income was primarily attributed to $1,550,000 of costs associated with the Merger, in addition to a $530,000 increase in FDIC insurance costs, along with the first quarter 2008 one time positive impact of $1,710,000 related to Visa International's Initial Public Offering. Net interest income was $22,181,000 against $17,072,000 for the same period of last year. Net interest income, after provision for loan losses, increased $4,154,000 or 25.2% during the 2009 period, largely due to increased interest and fees on loans and reduced interest expense from lower deposit costs. Core net income increased $1,430,000 or 23.8% due to increases in earning assets. Return on average equity and return on average assets for the nine months ended September 30, 2009 was 8.43% (9.78% excluding the Merger costs) and 1.09% (1.27% excluding the Merger costs), respectively. ROE was 13.14% (11.05% excluding the VISA IPO impact) and ROA was 1.55% (1.30% excluding the VISA IPO impact) for the same period last year. Book value per share was $35.78 against $33.48 for the same period of last year. Total interest income was $29,528,000 and income before income taxes was $7,839,000 against total interest income of $25,517,000 and income before income taxes of $9,081,000 for the same period last year.

Penseco Financial Services Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported an increase in net income of $941,000 or 48.8% for the three months ended June 30, 2009 to $2,869,000 or $0.88 per share compared with $1,928,000 or $0.89 per share from the year ago period. The increase in net income was primarily attributed to the Merger with Old Forge Bank, which was completed on April 1, 2009. Net interest income increased $2,373,000 or 41.9% largely due to an increased loan portfolio of $144.7 million from Old Forge Bank. Core net income increased $1,083,000 or 56.2% due to higher earning assets related to the Merger with Old Forge Bank. Return on average assets and return on average equity was 1.35% and 10.00% for the three months ending June 30, 2009, respectively, versus 1.25% and 10.53% for the same period last year. The company reported income before income taxes of $3.644 million and total interest income of $10.743 million compared to the income before income taxes of $2.358 million and total interest income of $8.464 million for the same period a year ago. The company reported a decrease in net income of $1,575,000 for the six months ended June 30, 2009 to $3,310,000 or $1.22 per weighted average share compared with $4,885,000 or $2.27 per share from the year ago period. The decrease in net income was primarily attributed to $1,550,000 of merger related costs associated with the acquisition of Old Forge Bank, along with the first quarter 2008 one time positive impact of $1,710,000 related to Visa International's Initial Public Offering. Net interest income, after provision for loan losses, increased $2,014,000 or 18.7% largely due to increased interest and fees on loans and reduced interest expense from lower deposit costs. Core net income increased $577,000 or 15.4% due to increases in earning assets. The company reported income before income taxes of $3.932 million and total interest income of $18.783 million compared to the income before income taxes of $6.260 million and total interest income of $16.951 million for the same period a year ago. Return on average assets and return on average equity was 0.89% and 6.99% for the six months ended June 30, 2009, respectively, versus 1.62% and 13.59% for the same period last year. The company announced book value per share of $34.56 compared to the book value per share of $33.70 per share for the same period a year ago.

Penseco Financial Services Corporation announced that on May 19, 2009, the Board of Directors of the company declared a quarterly cash dividend payment of $0.42 per share, an increase of 2.4% over dividends paid in the second quarter of 2008. The dividend will be paid on June 15, 2009 to shareholders of record as of the close of business on May 29, 2009.