Exhibit 99.1

Press Release — For Immediate Release

January 23, 2013

Penns Woods Bancorp, Inc. Reports Fourth Quarter 2012 Operating Earnings

Williamsport, PA — January 23, 2013 - Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

In 2012 Penns Woods Bancorp, Inc. continued their strong earnings and growth trend.  Record earnings of $13,850,000 were achieved for the twelve month period ending December 31, 2012.  The driving force behind the record net income was growth in loans and deposits with both reaching record levels.  The strong levels of earnings and balance sheet growth led to a stock price that reached an all time high (adjusted for stock splits/dividends) during the fourth quarter of 2012.

Highlights

·Net income from core operations (“operating earnings”), which is a non-GAAP measure of net income excluding net securities gains and bank owned life insurance gains on death benefit, decreased to $3,044,000 for the three months ended December 31, 2012 compared to $3,079,000 for the same period of 2011.  Net income from core operations increased to $12,893,000 for the twelve months ended December 31, 2012 compared to $11,952,000 for the same period of 2011.

·Operating earnings per share for the three months ended December 31, 2012 were $0.79 basic and dilutive compared to $0.80 basic and dilutive for the same period of 2011.  Operating earnings per share for the twelve months ended December 31, 2012 were $3.36 basic and dilutive compared to $3.12 basic and dilutive for the same period of 2011, an increase of 7.7%.

·Return on average assets was 1.46% for the three months ended December 31, 2012 compared to 1.80% for the three month period of 2011.  Return on average assets was 1.70% for the twelve months ended December 31, 2012 compared to 1.69% for the twelve month period of 2011.

·Return on average equity was 12.92% for the three months ended December 31, 2012 compared to 17.00% for the corresponding period of 2011.  Return on average equity was 15.36% for the twelve months ended December 31, 2012 compared to 16.60% for the corresponding period of 2011.

·The results for the three and twelve months ended December 31, 2012 were negatively impacted by $251,000 in expenses related to the announced acquisition of Luzerne National Bank Corporation.

“Our strategy of acquiring high quality earning assets, while using core deposits to fund their acquisition, is paying rewards as reflected in the strong financial metrics for the three and twelve month periods ended.  Growth in the loan portfolio, in particular home equity products, and in the core deposit portfolio, led by NOW and money market accounts, are two of the primary drivers of this strategy.  Combine this strategy with the knowledge and hard work of our employees and you have the recipe to our success,” said Richard A. Grafmyre, CFP®, President and CEO.

A reconciliation of the non-GAAP financial measures of operating earnings, operating return on assets, operating return on equity, and operating earnings per share, described in the highlights, to the comparable GAAP financial measures is included at the end of this press release.

Net Income

Net income, as reported under GAAP, for the three and twelve months ended December 31, 2012 was $3,096,000 and $13,850,000 compared to $3,395,000 and $12,362,000 for the same periods of 2011.  Results for the three and twelve months ended December 31, 2012 compared to 2011 were impacted by a decrease in after-tax securities gains of $264,000 (from a gain of $316,000 to a gain of $52,000) for the three month periods and an increase in after-tax securities gains of $438,000 (from a gain of $410,000 to a gain of $848,000) for the twelve month periods.  In addition, a gain of $109,000 on death benefit related to bank owned life insurance was recorded during the first quarter of 2012.  Impacting the results for the three and twelve months ended December 31, 2012 was the recognition of $251,000 in expenses related to the announced acquisition of Luzerne National Bank Corporation.  Basic and dilutive earnings per share for the three and twelve months ended December 31, 2012 were $0.81 and $3.61 compared to $0.88 and $3.22 for the corresponding periods of 2011.  Return on average assets and return on average equity were 1.46% and 12.92% for the three months ended December 31, 2012 compared to 1.80% and 17.00% for the corresponding period of 2011.  Earnings for the twelve months ended December 31, 2012 correlate to a return on average assets and a return on average equity of 1.70% and 15.36% compared to 1.69% and 16.60% for the corresponding period of 2011.

Net Interest Margin

The net interest margin for the three and twelve months ended December 31, 2012 was 4.29% and 4.45% compared to 4.78% and 4.70% for the corresponding periods of 2011.  While the net interest margin has decreased year over year, net interest income on a fully taxable equivalent basis has increased $2,257,000 to $34,099,000 for the twelve months ended December 31, 2012 compared to the corresponding period of 2011.  Driving this increase is the growth in the loan portfolio of 17.5% coupled with the continued emphasis on core deposit growth.  The loan growth was driven by several campaigns related to increasing our market share in home equity products.  The primary funding for the loan growth was an increase in core deposits of 15.5%.  These deposits represent a lower cost funding source than time deposits and comprise 73.62% of total deposits at December 31, 2012 compared to 70.34% at December 31, 2011.  The average rate paid on total interest-bearing deposits decreased 23 and 28 basis points (bp) for the three and twelve months ended December 31, 2012 compared to the same periods of 2011.  The decrease in the rate paid on total interest-bearing deposits was led by a decrease in the rate paid on time deposits and money markets.  The rate paid on time deposits decreased 28 and 33 bp for the three and twelve months ended December 31, 2012 compared to the same periods of 2011 and the rate paid on money markets decreased 32 and 37 bp for the three and twelve months ended December 31, 2012 compared to the same periods of 2011.  The duration of the time deposit portfolio, which was shortened over the past several years, continues to be slowly lengthened due to the apparent bottoming or near bottoming of deposit rates.  FHLB long-term borrowings have been increased by $15,000,000 since December 31, 2011 to fund a combination of loan growth and FHLB debt that matured.  Long-term borrowings of $15,000,000 matured during the three months ended December 31, 2012 carrying an average rate of 4.18%, while $15,000,000 was obtained during the third quarter 2012 carrying an average rate of 0.90% and $15,000,000 was obtained during the fourth quarter 2012 carrying an average rate of 0.87%.

“The net interest margin has and will continue to encounter challenges as we move forward in the current low rate environment. We continue to add quality earning assets, but the earning assets being added are at a lower rate than the legacy earning assets that are maturing or are repricing lower at their rate reset dates.  In addition, our investment portfolio strategy continues to focus on shortening the portfolio so that we will have an increased level of cash flow when interest rates begin to increase.  This strategy does limit current earnings, but serves a key role in our long-term asset liability management strategy, while reducing risk in an upward rate environment in terms of interest rate and market value depreciation.  On the funding side of the balance sheet there is limited ability to reduce costs as deposit rates have previously been reduced with limited room for reductions remaining as market rates have stabilized at their current levels.  During the second half of 2012, borrowings from the FHLB totaling $30 million at a blended rate of less than one percent were obtained.  These

borrowings replaced $15 million in higher cost FHLB borrowings that were maturing and provided additional funding for the growth in the loan and investment portfolios,” commented President Grafmyre.

Assets

Total assets increased $92,582,000 to $856,535,000 at December 31, 2012 compared to December 31, 2011.  Net loans increased 17.7% to $504,615,000 at December 31, 2012 compared to December 31, 2011 due in large part to campaigns related to increasing home equity product market share.  Housing, transportation, and all other facets related to the Marcellus Shale natural gas exploration are creating loan opportunities and we are aggressively attempting to attract those loans that meet or exceed our credit standards.  The investment portfolio increased $19,165,000 from December 31, 2011 to December 31, 2012 due to a combination of market value increases and the purchase of short maturity bonds that have been utilized to reduce the portfolio duration and to provide current cash flow.

Non-performing Loans

Our non-performing loans to total loans ratio has decreased to 2.29% at December 31, 2012 from 2.75% at December 31, 2011.  The decrease in non-performing loans is primarily the result of a decrease in commercial loan delinquencies due to several partial charge-offs and the receipt of collateral in lieu of payment with the collateral now carried as other real estate owned.  The majority of non-performing loans are centered on several loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses.  Net loan charge-offs of $2,062,000 for the twelve months ended December 31, 2012 represented 0.44% of average loans for the twelve months ended December 31, 2012.  The allowance for loan losses decreased to 1.49% of total loans at December 31, 2012 from 1.64% at December 31, 2011 due to several large charge-offs and the increase in the loan portfolio.

Deposits

Deposits have grown 10.4%, or $60,362,000, to $642,026,000 at December 31, 2012 compared to December 31, 2011, with core deposits (total deposits excluding time deposits) increasing $63,532,000, while higher cost time deposits decreased $3,170,000.  Noninterest-bearing deposits have increased 3.2% to $114,953,000 at December 31, 2012 compared to December 31, 2011.  Also playing a significant role in increasing core deposits were NOW and money market accounts with growth rates of 28.1% and 16.4%, respectively.  Driving this growth is our commitment to easy-to-use products, community involvement, and emphasis on customer service.  We have also successfully implemented a targeted marketing campaign aimed at further strengthening our customer relationships, while also expanding our market penetration.  In addition our newest branch, Danville, opened in January 2012 and has gathered approximately $27 million in deposits during the first twelve months of its operation.

Shareholders’ Equity

Shareholders’ equity increased $13,266,000 to $93,726,000 at December 31, 2012 compared to December 31, 2011.  The accumulated other comprehensive gain of $5,357,000 at December 31, 2012 is a result of an increase in unrealized gains on available for sale securities from an unrealized gain of $2,914,000 at December 31, 2011 to an unrealized gain of $10,164,000 at December 31, 2012.  However, the amount of accumulated other comprehensive gain at December 31, 2012 was also impacted by the change in net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan resulting in an increase in the net loss of $674,000 to $4,807,000 at December 31, 2012.  The current level of shareholders’ equity equates to a book value per share of $24.42 at December 31, 2012 compared to $20.97 at December 31, 2011 and an equity to asset ratio of 10.94% at December 31, 2012 compared to 10.53% at December 31, 2011.  Excluding accumulated other comprehensive gain/loss, book value per share was $23.02 at December 31, 2012 compared to $21.29 at December 31, 2011.  Dividends per share paid to shareholders were $0.47 and $1.88 for

the three and twelve months ended December 31, 2012 compared to $0.46 and $1.84 for the three and twelve months ended December 31, 2011.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, Centre, and Montour Counties.  Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because certain of these items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein:  (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Previous press releases and additional information can be obtained from the Company’s website at www.jssb.com.

Contact:	Richard A. Grafmyre, President and Chief Executive Officer
	300 Market Street
	Williamsport, PA 17701
	570-322-1111	e-mail: jssb@jssb.com

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.

CONSOLIDATED BALANCE SHEET

 (UNAUDITED)

	December 31,
(In Thousands, Except Share Data)	2012			2011			% Change
ASSETS
Noninterest-bearing balances	$	12,695		$	13,829		-8.2	%
Interest-bearing deposits in other financial institutions	2,447			56			4269.6	%
Total cash and cash equivalents	15,142			13,885			9.1	%
Investment securities, available for sale, at fair value	289,316			270,097			7.1	%
Investment securities held to maturity (fair value of $0 and $55)	—			54			-100.0	%
Loans held for sale	3,774			3,787			-0.3	%
Loans	512,232			435,959			17.5	%
Allowance for loan losses	(7,617		)	(7,154		)	6.5	%
Loans, net	504,615			428,805			17.7	%
Premises and equipment, net	8,348			7,707			8.3	%
Accrued interest receivable	4,099			3,905			5.0	%
Bank-owned life insurance	16,362			16,065			1.8	%
Investment in limited partnerships	2,883			3,544			-18.7	%
Goodwill	3,032			3,032			0.0	%
Deferred tax asset	4,731			7,991			-40.8	%
Other assets	4,233			5,081			-16.7	%
TOTAL ASSETS	$	856,535		$	763,953		12.1	%
LIABILITIES
Interest-bearing deposits	$	527,073		$	470,310		12.1	%
Noninterest-bearing deposits	114,953			111,354			3.2	%
Total deposits	642,026			581,664			10.4	%
Short-term borrowings	33,204			29,598			12.2	%
Long-term borrowings, Federal Home Loan Bank (FHLB)	76,278			61,278			24.5	%
Accrued interest payable	366			536			-31.7	%
Other liabilities	10,935			10,417			5.0	%
TOTAL LIABILITIES	762,809			683,493			11.6	%
SHAREHOLDERS’ EQUITY
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued	—			—			0.0	%
Common stock, par value $8.33, 15,000,000 shares authorized; 4,019,112 and 4,017,677 shares issued	33,492			33,480			0.0	%
Additional paid-in capital	18,157			18,115			0.2	%
Retained earnings	43,030			36,394			18.2	%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities	10,164			2,914			248.8	%
Defined benefit plan	(4,807		)	(4,133		)	-16.3	%
Treasury stock at cost, 180,596 shares	(6,310		)	(6,310		)	0.0	%
TOTAL SHAREHOLDERS’ EQUITY	93,726			80,460			16.5	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	856,535		$	763,953		12.1	%

PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(In Thousands, Except Per Share Data)	2012		2011		% Change		2012		2011		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	6,418	$	6,428	-0.2	%	$	25,372	$	25,187	0.7	%
Investment securities:
Taxable	1,463		1,446		1.2	%	5,940		5,677		4.6	%
Tax-exempt	1,302		1,385		-6.0	%	5,429		5,260		3.2	%
Dividend and other interest income	92		78		17.9	%	366		252		45.2	%
TOTAL INTEREST AND DIVIDEND INCOME	9,275		9,337		-0.7	%	37,107		36,376		2.0	%
INTEREST EXPENSE:
Deposits	848		1,036		-18.1	%	3,645		4,566		-20.2	%
Short-term borrowings	37		45		-17.8	%	137		202		-32.2	%
Long-term borrowings, FHLB	552		661		-16.5	%	2,429		2,888		-15.9	%
TOTAL INTEREST EXPENSE	1,437		1,742		-17.5	%	6,211		7,656		-18.9	%
NET INTEREST INCOME	7,838		7,595		3.2	%	30,896		28,720		7.6	%
PROVISION FOR LOAN LOSSES	725		900		-19.4	%	2,525		2,700		-6.5	%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	7,113		6,695		6.2	%	28,371		26,020		9.0	%
NON-INTEREST INCOME:
Service charges	500		483		3.5	%	1,894		2,021		-6.3	%
Securities gains, net	79		479		-83.5	%	1,285		621		106.9	%
Bank-owned life insurance	131		138		-5.1	%	670		599		11.9	%
Gain on sale of loans	333		280		18.9	%	1,386		1,130		22.7	%
Insurance commissions	304		303		0.3	%	1,357		933		45.4	%
Brokerage commissions	214		200		7.0	%	912		997		-8.5	%
Other	724		528		37.1	%	2,596		1,918		35.3	%
TOTAL NON-INTEREST INCOME	2,285		2,411		-5.2	%	10,100		8,219		22.9	%
NON-INTEREST EXPENSE:
Salaries and employee benefits	2,956		2,751		7.5	%	11,762		10,479		12.2	%
Occupancy, net	307		300		2.3	%	1,270		1,262		0.6	%
Furniture and equipment	394		368		7.1	%	1,452		1,379		5.3	%
Pennsylvania shares tax	169		173		-2.3	%	674		689		-2.2	%
Amortization of investments in limited partnerships	165		165		0.0	%	661		661		0.0	%
FDIC deposit insurance	119		109		9.2	%	468		525		-10.9	%
Other	1,648		1,286		28.1	%	5,736		4,969		15.4	%
TOTAL NON-INTEREST EXPENSE	5,758		5,152		11.8	%	22,023		19,964		10.3	%
INCOME BEFORE INCOME TAX PROVISION	3,640		3,954		-7.9	%	16,448		14,275		15.2	%
INCOME TAX PROVISION	544		559		-2.7	%	2,598		1,913		35.8	%
NET INCOME	$	3,096	$	3,395	-8.8	%	$	13,850	$	12,362	12.0	%
EARNINGS PER SHARE - BASIC	$	0.81	$	0.88	-8.0	%	$	3.61	$	3.22	12.1	%
EARNINGS PER SHARE - DILUTED	$	0.81	$	0.88	-8.0	%	$	3.61	$	3.22	12.1	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC	3,838,290		3,836,802		0.0	%	3,837,751		3,836,036		0.0	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED	3,838,290		3,836,802		0.0	%	3,837,751		3,836,036		0.0	%
DIVIDENDS PER SHARE	$	0.47	$	0.46	2.2	%	$	1.88	$	1.84	2.2	%

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

	For the Three Months Ended
	December 31, 2012						December 31, 2011
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	22,171	$	286	5.13	%	$	20,119	$	289	5.70	%
All other loans	482,586		6,229		5.13	%	414,356		6,237		5.97	%
Total loans	504,757		6,515		5.13	%	434,475		6,526		5.96	%
Taxable securities	161,669		1,551		3.84	%	141,805		1,524		4.30	%
Tax-exempt securities	132,624		1,973		5.95	%	123,960		2,098		6.77	%
Total securities	294,293		3,524		4.79	%	265,765		3,622		5.45	%
Interest-bearing deposits	2,514		4		0.63	%	645		—		0.00	%
Total interest-earning assets	801,564		10,043		4.99	%	700,885		10,148		5.76	%
Other assets	46,860						52,578
TOTAL ASSETS	$	848,424					$	753,463
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	80,341	21		0.10	%	$	70,725	23		0.13	%
Super Now deposits	125,396		158		0.50	%	103,982		141		0.54	%
Money market deposits	149,691		154		0.41	%	125,259		229		0.73	%
Time deposits	172,334		515		1.19	%	173,931		643		1.47	%
Total interest-bearing deposits	527,762		848		0.64	%	473,897		1,036		0.87	%
Short-term borrowings	25,926		37		0.57	%	21,268		45		0.84	%
Long-term borrowings, FHLB	71,821		552		3.01	%	64,245		661		4.03	%
Total borrowings	97,747		589		2.36	%	85,513		706		3.23	%
Total interest-bearing liabilities	625,509		1,437		0.91	%	559,410		1,742		1.23	%
Demand deposits	116,314						105,607
Other liabilities	10,736						8,562
Shareholders’ equity	95,865						79,884
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	848,424					$	753,463
Interest rate spread					4.08	%					4.53	%
Net interest income/margin			$	8,606	4.29	%			$	8,406	4.78	%

	For the Three Months Ended
	December 31,
	2012		2011
Total interest income	$	9,275	$	9,337
Total interest expense	1,437		1,742
Net interest income	7,838		7,595
Tax equivalent adjustment	768		811
Net interest income (fully taxable equivalent)	$	8,606	$	8,406

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

	For the Twelve Months Ended
	December 31, 2012						December 31, 2011
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	23,857	$	1,195	5.01	%	$	20,267	$	1,213	5.99	%
All other loans	446,569		24,583		5.50	%	405,391		24,386		6.02	%
Total loans	470,426		25,778		5.48	%	425,658		25,599		6.01	%
Taxable securities	158,765		6,298		3.97	%	130,647		5,926		4.54	%
Tax-exempt securities	131,637		8,226		6.25	%	113,184		7,970		7.04	%
Total securities	290,402		14,524		5.00	%	243,831		13,896		5.70	%
Interest-bearing deposits	6,621		8		0.12	%	9,074		3		0.03	%
Total interest-earning assets	767,449		40,310		5.25	%	678,563		39,498		5.82	%
Other assets	49,070						53,207
TOTAL ASSETS	$	816,519					$	731,770
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	78,724	65		0.08	%	$	70,178	121		0.17	%
Super Now deposits	118,515		610		0.51	%	88,556		473		0.53	%
Money market deposits	145,339		734		0.51	%	121,458		1,063		0.88	%
Time deposits	173,274		2,236		1.29	%	179,336		2,909		1.62	%
Total interest-bearing deposits	515,852		3,645		0.71	%	459,528		4,566		0.99	%
Short-term borrowings	20,961		137		0.65	%	18,117		202		1.11	%
Long-term borrowings, FHLB	64,994		2,429		3.68	%	69,879		2,888		4.08	%
Total borrowings	85,955		2,566		2.94	%	87,996		3,090		3.47	%
Total interest-bearing liabilities	601,807		6,211		1.03	%	547,524		7,656		1.39	%
Demand deposits	113,431						99,917
Other liabilities	11,126						9,852
Shareholders’ equity	90,155						74,477
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	816,519					$	731,770
Interest rate spread					4.22	%					4.43	%
Net interest income/margin			$	34,099	4.45	%			$	31,842	4.70	%

	For the Twelve Months Ended
	December 31,
	2012		2011
Total interest income	$	37,107	$	36,376
Total interest expense	6,211		7,656
Net interest income	30,896		28,720
Tax equivalent adjustment	3,203		3,122
Net interest income (fully taxable equivalent)	$	34,099	$	31,842

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	12/31/2012			9/30/2012			6/30/2012			3/31/2012			12/31/2011
Operating Data
Net income	$	3,096		$	3,667		$	3,398		$	3,689		$	3,395
Net interest income	7,838			7,690			7,698			7,670			7,595
Provision for loan losses	725			600			600			600			900
Net security gains	79			447			170			589			479
Non-interest income, ex. net security gains	2,206			2,324			2,111			2,174			1,932
Non-interest expense	5,758			5,458			5,343			5,464			5,152
Performance Statistics
Net interest margin	4.29		%	4.34		%	4.47		%	4.72		%	4.78		%
Annualized return on average assets	1.46		%	1.77		%	1.67		%	1.91		%	1.80		%
Annualized return on average equity	12.92		%	15.94		%	15.48		%	17.39		%	17.00		%
Annualized net loan charge-offs to avg loans	0.50		%	0.44		%	0.79		%	0.01		%	0.09		%
Net charge-offs	629			517			907			9			101
Efficiency ratio	57.3		%	54.5		%	54.5		%	55.5		%	54.1		%
Per Share Data
Basic earnings per share	$	0.81		$	0.96		$	0.89		$	0.96		$	0.88
Diluted earnings per share	0.81			0.96			0.89			0.96			0.88
Dividend declared per share	0.47			0.47			0.47			0.47			0.46
Book value	24.42			24.43			22.96			22.22			20.97
Common stock price:
High	45.27			44.60			39.90			41.67			39.30
Low	37.16			37.78			36.72			36.20			32.01
Close	37.41			44.33			39.81			40.88			38.78
Weighted average common shares:
Basic	3,838			3,838			3,838			3,837			3,837
Fully Diluted	3,838			3,838			3,838			3,837			3,837
End-of-period common shares:
Issued	4,019			4,019			4,018			4,018			4,018
Treasury	181			181			181			181			181

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	12/31/2012			9/30/2012			6/30/2012			3/31/2012			12/31/2011
Financial Condition Data:
General
Total assets	$	856,535		$	840,606		$	818,433		$	793,114		$	763,953
Loans, net	504,615			477,530			457,904			435,832			428,805
Intangibles	3,032			3,032			3,032			3,032			3,032
Total deposits	642,026			641,110			641,167			621,542			581,664
Noninterest-bearing	114,953			115,285			117,762			116,271			111,354
Savings	82,546			81,479			81,479			77,253			71,646
NOW	130,454			125,572			115,972			108,904			101,808
Money Market	144,722			149,054			152,114			141,830			124,335
Time Deposits	169,351			169,720			173,840			177,284			172,521
Total interest-bearing deposits	527,073			525,825			523,405			505,271			470,310
Core deposits*	472,675			471,390			467,327			444,258			409,143
Shareholders’ equity	93,726			93,779			88,111			85,279			80,460
Asset Quality
Non-performing assets	$	11,706		$	12,041		$	8,725		$	11,308		$	12,009
Non-performing assets to total assets	1.37		%	1.43		%	1.07		%	1.43		%	1.57		%
Allowance for loan losses	7,617			7,521			7,438			7,745			7,154
Allowance for loan losses to total loans	1.49		%	1.55		%	1.60		%	1.75		%	1.64		%
Allowance for loan losses to non-performing loans	65.07		%	62.46		%	85.25		%	68.49		%	59.57		%
Non-performing loans to total loans	2.29		%	2.48		%	1.87		%	2.55		%	2.75		%
Capitalization
Shareholders’ equity to total assets	10.94		%	11.16		%	10.77		%	10.75		%	10.53		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(Dollars in Thousands, Except Per Share Data)	2012			2011			2012			2011
GAAP net income	$	3,096		$	3,395		$	13,850		$	12,362
Less: net securities and bank-owned life insurance gains, net of tax	52			316			957			410
Non-GAAP operating earnings	$	3,044		$	3,079		$	12,893		$	11,952
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Return on average assets (ROA)	1.46		%	1.80		%	1.70		%	1.69		%
Less: net securities and bank-owned life insurance gains, net of tax	0.02		%	0.17		%	0.12		%	0.06		%
Non-GAAP operating ROA	1.44		%	1.63		%	1.58		%	1.63		%
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Return on average equity (ROE)	12.92		%	17.00		%	15.36		%	16.60		%
Less: net securities and bank-owned life insurance gains, net of tax	0.22		%	1.58		%	1.06		%	0.55		%
Non-GAAP operating ROE	12.70		%	15.42		%	14.30		%	16.05		%
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Basic earnings per share (EPS)	$	0.81		$	0.88		$	3.61		$	3.22
Less: net securities and bank-owned life insurance gains, net of tax	0.02			0.08			0.25			0.10
Non-GAAP basic operating EPS	$	0.79		$	0.80		$	3.36		$	3.12
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Dilutive EPS	$	0.81		$	0.88		$	3.61		$	3.22
Less: net securities and bank-owned life insurance gains, net of tax	0.02			0.08			0.25			0.10
Non-GAAP dilutive operating EPS	$	0.79		$	0.80		$	3.36		$	3.12