Exhibit 99.1

January 25, 2011

VIST Financial Corp. Announces 2010 Earnings & Cash Dividend

Wyomissing, PA: VIST Financial Corp. (“Company”) (NASDAQ: VIST) reported net income for the twelve months ended December 31, 2010 of $3,984,000, a $3,377,000 or a 556.3% increase over net income of $607,000 for the same period in 2009.  The Company also reported net income for the three months ended December 31, 2010 of $1,347,000, a $918,000 or a 214.0% increase over net income of $429,000 for the same period in 2009.

On November 19, 2010, the Company acquired certain assets and assumed certain liabilities of Allegiance Bank of North America (“Allegiance”) of Bala Cynwyd, Pennsylvania, through an FDIC-assisted whole bank acquisition.  The Allegiance acquisition added five full-service locations in Chester and Philadelphia counties, of which the Company expects to close one by March 31, 2011.  As part of the Allegiance acquisition, the Company entered into a loss-sharing agreement with the FDIC that covers a portion of losses incurred after the acquisition date on loans and other real estate owned. As of the acquisition date, the Company recorded $6,999,000 as an indemnification asset, which represents the present value of the estimated loss share reimbursements expected to be received from the FDIC for future losses on covered assets.  As part of the agreement, the FDIC will reimburse the Company for 70% of any losses incurred related to loans and other real estate owned covered under the loss-sharing agreement. Realized losses in excess of the acquisition date estimates will result in the FDIC increasing its reimbursement to the Company to 80%.

The acquisition has been accounted for under the acquisition method of accounting.  The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the November 19, 2010 acquisition date.  Prior to purchase accounting adjustments, the Company assumed approximately $93,000,000 in deposit liabilities and acquired certain assets of approximately $106,000,000. The application of the acquisition method of accounting resulted in recorded goodwill of $1,547,000.  Fair value adjustments include a write-down of $12,925,000 related to the covered loan portfolio, and increased liabilities of $534,000 related to time deposits and $553,000 related to long-term debt.  The Company estimates accretable interest on the covered loan portfolio of approximately $3,500,000 and additional non-interest income of $500,000 related to the accretion of the FDIC indemnification asset, which will be recognized over the remaining maturity of the covered loan portfolio.

The Company further reported that the board of directors declared a cash dividend of $0.05 per share on the Company’s common stock to shareholders of record on February 4, 2011 payable February 15, 2011.

Commenting on the full year and fourth quarter of 2010, Robert D. Davis, President and Chief Executive Officer of VIST Financial Corp. said, “Our financial performance in 2010 and the fourth quarter of the year represent a material improvement over 2009 results, however we acknowledge our results continue to be influenced by lagging effects of the national and regional recession.  In spite of the economic headwinds, we are pleased with our linked quarter improvement in core operating earnings, significant loan growth as well as an increase in non-interest income.  Of equal importance, our non-performing asset quality trends continue to remain relatively stable.  Exclusive of certain expenses related to provision expense, other than temporary impairment (“OTTI”) charges on the Company’s investment portfolio, and other real estate expenses, our overall expenses were flat.

Davis continued, “During the year, we experienced an improvement in our net interest margin, which we believe is sustainable at current levels through 2011.  Importantly, our non-interest fee based revenue from our retail banking, insurance, residential mortgage and wealth management businesses continues to represent 31% of our total net revenue.”

Davis further stated, “The Allegiance acquisition contributed $51,000 to our fourth quarter pre-tax net income which included one-time net charges of $117,000.  This strategic acquisition represents a significant market extension of our core Berks, Schuylkill and Montgomery county markets allowing VIST to better serve the financial services needs of customers in Philadelphia and the surrounding suburbs.  We expect this acquisition will be immediately accretive to our shareholders.”

Davis concluded, “We are pleased that our board of directors has declared a cash dividend.  By this action, our board respects both the need to preserve capital while demonstrating confidence in our future operating results.”

Net Interest Income

For the twelve months ended December 31, 2010, net interest income before the provision for loan losses increased 15.0% to $40,744,000 compared to $35,422,000 for the same period in 2009.  The increase in net interest income for the twelve months resulted from a 2.1% increase in total interest income to $64,087,000 from $62,740,000 and a 14.6% reduction in total interest expense to $23,343,000 from $27,318,000.  For the three months ended December 31, 2010, net interest income before the provision for loan losses increased 11.6% to $10,745,000 compared to $9,627,000 for the same period in 2009.  The increase in net interest income for the three months resulted from a 2.5% increase in total interest income to $16,462,000 from $16,062,000 and a 11.2% decrease in total interest expense to $5,717,000 from $6,435,000.

The increase in total interest income for the three and twelve months ended December 31, 2010 resulted primarily from an increase in average earning assets offset by a decrease in interest rates on mortgage and consumer loans and available for sale

investment securities compared to the same period in 2009.  Average earning assets for the three and twelve month periods ended December 31, 2010 increased $104,376,000 and $87,786,000, respectively, compared to the same periods in 2009 due primarily to growth in commercial loans, available for sale investment securities and federal funds sold.

The reduction in total interest expense for the three and twelve months ended December 31, 2010 resulted primarily from lower interest rates compared to the same periods in 2009.  Average interest-bearing liabilities for the three and twelve months ended December 31, 2010 increased $84,015,000 and $80,399,000, respectively, compared to the same periods in 2009.  The increases in interest-bearing liabilities are due primarily to an increase in average interest-bearing deposits for the three and twelve months ended December 31, 2010 of $109,623,000 and $119,445,000, respectively, offset by a net decrease in average borrowings for the three and twelve months ended December 31, 2010 of $25,608,000 and $39,046,000, respectively, compared to the same periods in 2009.

For the twelve months ended December 31, 2010, the net interest margin on a fully taxable equivalent basis was 3.44% as compared to 3.22% for the same period in 2009.  For the three months ended December 31, 2010, the net interest margin on a fully taxable equivalent basis was 3.43% as compared to 3.37% for the same period in 2009.  The increase in net interest margin for the comparative three and twelve month periods ended December 31, 2010 was due mainly to lower cost of funds compared to the same periods in 2009.

Provision for Non-Covered Loans:

The provision for loan losses for the twelve months ended December 31, 2010 was $10,210,000 compared to $8,572,000 for the same period in 2009.  The provision for loan losses for the three months ended December 31, 2010 was $2,050,000 compared to $2,047,000 for the same period in 2009.  As of December 31, 2010, the allowance for loan losses was $14,790,000 compared to $11,449,000 as of December 31, 2009, an increase of 29.2%.  The increase in the provision is due primarily to economic conditions and the result of management’s evaluation and classification of the credit quality of the loan portfolio utilizing a qualitative and quantitative internal loan review process.  At December 31, 2010, total non-performing loans were $27,107,000 or 2.8% of total loans compared to $26,951,000 or 3.0% of total loans at December 31, 2009.  Management considers the current allowance for loan losses adequate as of December 31, 2010.

Covered Loans:

The covered loans acquired from Allegiance are shown as a separate line item of the consolidated balance sheet and are not included in the consolidated net loan totals.  Covered loans are also not included in any of the reported credit quality metrics, as they are accounted for separately per generally accepted accounting principle (“GAAP”) requirements.  At December 31, 2010, total non-performing covered loans were $4,408,000 or 6.6% of total covered loans.

Non-Interest Income

Total non-interest income for the twelve months ended December 31, 2010 increased 18.3% to $20,617,000 compared to $17,431,000 for the same period in 2009.  Total non-interest income for the three months ended December 31, 2010 increased 7.8% to $4,774,000 compared to $4,429,000 for the same period in 2009.

For the twelve months ended December 31, 2010, customer service fees decreased to $2,046,000 from $2,443,000, or 16.3%, for the same period in 2009.  For the three months ended December 31, 2010, customer service fees decreased to $436,000 from $589,000, or 26.0%, for the same period in 2009.  The decrease for the comparative three and twelve month periods is due primarily to a decrease in non-sufficient funds charges.

For the twelve months ended December 31, 2010, revenue from mortgage banking activities decreased to $1,082,000 from $1,255,000, or 13.8%, for the same period in 2009.  For the three months ended December 31, 2010, revenue from mortgage banking activities increased to $451,000 from $292,000, or 54.5%, for the same period in 2009.  The comparatives for the three and twelve month periods reflect volume fluctuations of loans sold into the secondary mortgage market.  The Company operates its mortgage banking activities through VIST Mortgage, a division of VIST Bank.

For the twelve months ended December 31, 2010, revenue from commissions and fees from insurance sales decreased 2.8% to $11,915,000 compared to $12,254,000 for the same period in 2009.  For the three months ended December 31, 2010, revenue from commissions and fees from insurance sales decreased 9.2% to $2,723,000 compared to $3,000,000 for the same period in 2009.  The decrease for the comparative three and twelve month periods is mainly attributed to a decrease in contingency income on insurance products sold through VIST Insurance, LLC, a wholly owned subsidiary of the Company.

For the twelve months ended December 31, 2010, other income increased to $2,672,000 from $565,000 for the same period in 2009.  For the three months ended December 31, 2010, other income increased to $287,000 from ($8,000) for the same period in 2009.  The increase in other income for the comparative twelve month period is due primarily to a $1,875,000 gain recognized on the sale of a 25% equity interest in First HSA, LLC related to the transfer of approximately $89,000,000 of Health Savings Account (“HSA”) deposits in the second quarter of 2010 and due to a $272,000 premium paid to the Company resulting from a counterparty exercising a call option to terminate an interest rate swap.

For the twelve months ended December 31, 2010, net realized gains on sales of available for sale securities were $691,000 compared to net realized gains on sales of available for sale securities of $344,000 for the same period in 2009.  For the three months ended December 31, 2010, net realized gains on sales of available for sale securities were $226,000 compared to net realized losses on sales of available for sale securities of $7,000 for the same period in 2009.  The net securities gains are primarily from the planned sale of existing available for sale investment securities and include $122,000 of net losses on the sale of available for sale investment securities related to the Allegiance acquisition.

For the twelve months ended December 31, 2010, net credit impairment losses recognized in earnings resulting from other-than-temporary impairment (“OTTI”) losses on investment securities were $850,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $2,468,000 for the same period in 2009.  For the three month period ended December 31, 2010, net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities were $79,000 compared to net credit impairment losses recognized in earnings resulting from OTTI losses on investment securities of $150,000 for the same period in 2009.  The net credit impairment losses relate to OTTI charges for estimated credit losses on available for sale and held to maturity pooled trust preferred securities.  For the three and twelve months ended December 31, 2010, the OTTI losses recognized on available for sale and held to maturity pooled trust preferred securities resulted primarily from changes in the underlying cash flow assumptions used in determining credit losses due to provisions relating to such securities included in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Non-Interest Expense

Total non-interest expense for the twelve months ended December 31, 2010 increased 4.2% to $47,632,000 compared to $45,703,000 for the same period in 2009.  Total non-interest expense for the three months ended December 31, 2010 decreased 0.2% to $12,014,000 compared to $12,034,000 for the same period in 2009.

Salaries and benefits were $21,979,000 for the twelve months ended December 31, 2010, compared to $22,134,000 for the same period in 2009.  Salaries and benefits were $5,557,000 for the three months ended December 31, 2010, compared to $5,318,000 for the same period in 2009.  The decrease in salaries and benefits for the comparative twelve month period is due primarily to a decrease in employer 401(k) matching contributions and commissions paid offset by an increase in base salaries.  The increase in salaries and benefits for the comparative three month period is due primarily to an increase in employee medical insurance costs and the addition of a Chief Information Officer.  Total commissions paid for the twelve months ended December 31, 2010 and 2009 were $1,120,000 and $1,409,000, respectively.  Total commissions paid for the three months ended December 31, 2010 and 2009 were $313,000 and $329,000, respectively.

For the twelve months ended December 31, 2010, occupancy expense increased to $4,415,000 from $4,160,000, or 6.1%, for the same period in 2009.  For the three months ended December 31, 2010, occupancy expense increased to $1,141,000 from $1,086,000, or 5.1%, for the same period in 2009.  The increase for the comparative three and twelve month periods is due primarily to an increase in building lease expense.

For the twelve months ended December 31, 2010, professional services expense increased to $3,093,000 from $2,480,000, or 24.7%, for the same period in 2009.  For the three months ended December 31, 2010, professional services expense increased to $989,000 from $561,000, or 76.3%, for the same period in 2009.  The increase for the comparative three and twelve month periods is due primarily to an increase in accounting fees for accounting related services and consulting fees associated with various corporate projects.  For the three and twelve months ended December 31, 2010, professional services expense included $150,000 of investment banking fees related to the Allegiance acquisition.

For the twelve months ended December 31, 2010, FDIC deposit and other insurance expense decreased to $2,128,000 from $2,479,000, or 14.2%, for the same period in 2009.  For the three months ended December 31, 2010, FDIC deposit and other insurance expense decreased to $460,000 from $565,000, or 18.6%, for the same period in 2009.  The decrease in FDIC deposit and other insurance expense for the comparative twelve month period is due primarily to a $580,000 special industry-wide FDIC deposit insurance premium assessed in 2009.  The decrease in FDIC deposit and other insurance expense for the comparative three month period is due primarily to the sale of a equity interest in HSA deposits in the second quarter of 2010.

For the twelve months ended December 31, 2010, other real estate expense (“OREO”) increased to $4,245,000 from $2,562,000, or 65.7%, for the same period in 2009.  For

the three months ended December 31, 2010, OREO expense decreased to $982,000 from $1,587,000, or 38.1%, for the same period in 2009.  OREO expense for the comparative three and twelve month period reflects costs associated with adjusting foreclosed properties to fair value after these assets have been classified as OREO, as well as other costs to operate and maintain OREO property during the holding period.

Income Tax Expense

Income tax benefit for the twelve months ended December 31, 2010 was $465,000, a 77.1% decrease as compared to an income tax benefit of $2,029,000 for the same period in 2009.  Income tax expense for the three months ended December 31, 2010 was $108,000, a 123.8% increase as compared to an income tax benefit of $454,000 for the same period in 2009.  The overall increase in income tax expense for the comparative three and twelve month period is due primarily to an increase in pre-tax income. Included in income tax expense for the three and twelve months ended December 31, 2010 and 2009 is a federal tax benefit from a $5,000,000 investment in an affordable housing, corporate tax credit limited partnership.

Earnings Per Share

Diluted earnings per common share for the twelve months ended December 31, 2010 were $0.37 on average shares outstanding of 6,317,785 compared to diluted (loss) per common share of ($0.18) on average shares outstanding of 5,780,541 for the twelve months ended December 31, 2009.  Diluted earnings per common share for the three months ended December 31, 2010 were $0.14 on average shares outstanding of 6,558,559 compared to diluted (loss) per common share of ($0.01) on average shares outstanding of 5,800,003 for the three months ended December 31, 2009.  The increase in diluted earnings per share for the comparative three and twelve month periods is due primarily to an increase in net income available to common shareholders.

Assets, Liabilities and Equity

Total assets as of December 31, 2010 increased $116,293,000, or 8.9%, to $1,425,012,000 compared to $1,308,719,000 at December 31, 2009.  Total gross loans as of December 31, 2010 increased $43,399,000 or 4.8%, to $954,363,000 compared to $910,964,000 at December 31, 2009.  At December 31, 2010, covered loans attributable to the Allegiance acquisition were $66,770,000.  Total deposits increased $128,382,000, or 12.6%, to $1,149,280,000 compared to $1,020,898,000 at December 31, 2009.  A majority of the increase in deposits is due primarily to the deposits assumed in the Allegiance acquisition as well as growth in NOW, MMDA and Savings deposits.  Total borrowings as of December 31, 2010, decreased $19,574,000, or 12.6%, to $135,280,000 compared to $154,854,000 at December 31, 2009.

Shareholders’ equity as of December 31, 2010 increased $7,019,000, or 5.6%, to $132,447,000 compared to $125,428,000 at December 31, 2009.  In the second quarter of 2010, the Company completed the issuance of approximately $4.8 million in common stock, net of offering costs.  Also included in shareholders’ equity is an unrealized loss position on available for sale and held to maturity securities, net of taxes, as of December 31, 2010, of $4,387,000 compared to an unrealized loss position on available for sale securities, net of taxes, of $4,512,000 at December 31, 2009.

Quarterly Shareholder and Investor Conference Call

VIST Financial will host a quarterly shareholder and investor conference call on Wednesday, January 26, 2011 at 8:30 a.m. EDT.  Interested parties can join the conference call and ask questions by dialing 877.317.6789 or listening through the computer by clicking on the following link:

http://www.talkpoint.com/viewer/starthere.asp?Pres=133961

The conference call can also be accessed through a link located under the Investor Relations page within VIST Financial Corp’s website:  http://www.VISTfc.com.

To replay the conference call, dial 1-877-344-7529 which will be available after 11:00 AM ET on January 26, 2011.  The conference call will be archived for 90 days and will be available at the link above and on the Company’s Investor Relations webpage.

VIST Financial Corp. is diversified financial services company headquartered in Wyomissing, PA, offering banking, insurance, investments, wealth management, and title insurance services throughout Berks, Southern Schuylkill, Montgomery, Delaware, Philadelphia and Lancaster Counties.

This release may contain forward-looking statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

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