Exhibit 99.1

NEWS RELEASE

FOR RELEASE: 12:00 P.M. Eastern Time: February 15, 2013

Penseco Financial Services Corporation Reports Earnings as of December 31, 2012

SCRANTON, PA, February 15, 2013 – Penseco Financial Services Corporation (OTC Bulletin Board: PFNS) (the “Company”), the Scranton, Pennsylvania based financial holding company of Penn Security Bank & Trust Company, reported net income for the three months ended December 31, 2012 of $2,708,000 – an increase of $239,000, or 9.7% – or $0.82 per basic and diluted weighted average share, compared with $2,469,000, or $0.75 per basic and diluted weighted average share, from the year ago period. Net interest income, after provision for loan and lease losses, increased $400,000, or 5.4%, during the 2012 period, due to a reduction in interest expense of $523,000, or 30.1%, from lower funding costs and a $521,000, or 78.0%, decrease in the provision for loan and lease losses, offset by a decrease in interest income of $644,000, or 6.6%. The decrease in interest income was primarily attributable to investment and loan cash flows being reinvested in securities that have historically low yields, including excess reserve deposits held at the Federal Reserve Bank of Philadelphia.

The Company reported net income for the twelve months ended December 31, 2012 of $10,589,000 – an increase of $58,000, or 0.6% – or $3.23 per basic and diluted weighted average share, compared with $10,531,000, or $3.21 per basic and diluted weighted average share, from the year ago period. Net interest income, after provision for loan and lease losses, increased $1,318,000, or 4.4%, during the 2012 period, due to a reduction in interest expense of $1,977,000, or 26.9%, from lower funding costs and a $1,457,000, or 61.2%, decrease in the provision for loan and lease losses, offset by a decrease in interest income of $2,116,000, or 5.3%. The decrease in interest income was primarily attributable to investment and loan cash flows being reinvested in securities that have historically low yields, including excess reserve deposits held at the Federal Reserve Bank of Philadelphia.

Net income from core operations increased $388,000, or 3.8%, for the twelve months ended December 31, 2012 to $10,589,000, compared to $10,201,000 for the same period in 2011. Net income from core operations is a non-GAAP measure of net income. The Company defines its core operations to exclude the reversal, in the three months ended in March 31, 2011, of a contingent liability recorded in connection with the 2009 acquisition of Old Forge Bank (the “Merger”). A reconciliation of the net income from core operations and disclosure of the non-GAAP adjusted return on average assets, adjusted return on average equity and adjusted dividend payout ratio derived from that measure are described in the Reconciliation of Non-GAAP Financial Measures included in this press release.

Non-Interest Income

Total non-interest income increased $103,000, or 3.8%, to $2,811,000 for the three months ended December 31, 2012, compared with $2,708,000 for the same period in 2011. This increase was primarily attributable to an impairment loss on bank equity investment securities of $78,000, recognized during the three months ended December 31, 2011, along with an increase of $20,000 in trust department income, and an increase of $34,000 in other operating income. These increases were partially offset by a decrease of $29,000 in net realized gains on securities.

Total non-interest income decreased $1,178,000, or 9.3%, to $11,441,000 for the twelve months ended December 31, 2012, compared with $12,619,000 for the same period in 2011. This decrease was attributable to a decrease of $380,000 in merchant transaction income due to lower volume, a decrease of $369,000 in other operating income due to income recorded in connection with the reversal of a contingent liability of $500,000 during the quarter ended March 31, 2011, a decrease of $349,000 in net realized gains on securities, as well as a decrease of $129,000 in service charges on deposit accounts. These decreases were partially offset by increased gains on the sale of residential mortgage loans of $322,000.

Non-Interest Expenses

Total non-interest expenses increased $90,000, or 1.3%, to $7,158,000 for the three months ended December 31, 2012 compared with $7,068,000 for the same period in 2011. This increase in total non-interest expense included an increase of $101,000 in FDIC insurance assessments. Other operating expenses increased $209,000, resulting primarily from increased Pennsylvania shares tax expense. These increases were partially offset by a decrease in premises and equipment expense of $131,000, due primarily to lower equipment maintenance and repairs and depreciation expense and a decrease in salaries and employee benefits of $81,000.

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Total non-interest expenses increased $58,000, or 0.2%, to $29,099,000 for the twelve months ended December 31, 2012 compared with $29,041,000 for the same period in 2011. Salaries and employee benefits increased $170,000 during the year ended December 31, 2012 compared to the year ended December 31, 2011. Other operating expenses increased $919,000 during the 2012 fiscal year, primarily as the result of increased Pennsylvania shares tax expense. These increases were offset by a decrease in premises and equipment expense of $615,000, due primarily to lower equipment maintenance and repairs and depreciation expense. Merchant transaction expenses decreased $424,000, due to lower volume.

Asset Quality

The Company maintains an allowance for loan and lease losses which reflects management’s estimate of probable loan losses, as determined in accordance with the Company’s allowance for loan and lease losses methodology. The ratio of the allowance for loan and lease losses to total loans was 1.11% and 1.06% as of December 31, 2012 and 2011, respectively.

Non-accrual loans equaled $2,280,000, or 0.37% of outstanding loans, at December 31, 2012, representing a decrease of $886,000, or 28.0%, from $3,166,000 non-accrual loans, or 0.50% of outstanding loans, at December 31, 2011. There were no commitments to lend additional funds to borrowers whose loans were in non-accrual status at December 31, 2012.

Net loan charge-offs amounted to $685,000, or 0.11%, of average outstanding loans for the twelve months ended December 31, 2012, compared to $2,170,000, or 0.35%, of average outstanding loans outstanding for the twelve months ended December 31, 2011.

The Company continues to proactively evaluate probable loan and lease losses and address delinquent loans by, among other things, obtaining current appraisals of collateral, increasing communication with borrowers and placing loans on non-accrual status when collection is in doubt and the loan is moving toward foreclosure or liquidation of collateral.

Income Tax Expense

Income taxes increased $174,000, or 29.8%, and $24,000, or 0.8%, for the three months and twelve months ended December 31, 2012, respectively, primarily due to higher taxable income.

Restatement

During the quarter ended June 30, 2012, the Company became aware that the actuarially computed value of its postretirement benefit liability was inaccurate. The postretirement benefit plan provides employees with life insurance coverage that continues at various levels after retirement. Due to a change in the assumptions provided by the Company to its actuary as to the cost of future premiums, the actuarially computed unfunded liability was understated.

The restatement resulted in the following changes to numbers previously reported:

As of December 31, 2010, an increase in other liabilities (postretirement liability) of $2,206,000 and an increase in other assets (deferred taxes) of $750,000 resulted in a net decrease to Stockholder’s Equity of $1,456,000, from $121,922,000 to $120,466,000.

As of September 30, 2011, an increase in other liabilities (postretirement liability) of $2,404,000 and an increase in other assets (deferred taxes) of $817,000 resulted in a net decrease to Stockholder’s Equity of $1,587,000, from $128,496,000 to $126,909,000.

For the three months ended December 31, 2011, an increase of $66,000 in employee benefits expense and a decrease of $23,000 in applicable income taxes, or a net reduction in net income of $43,000 from $2,512,000 to $2,469,000 or approximately $0.02 per share. Comprehensive income also was reduced by $80,000, from $1,880,000 to $1,800,000.

For the twelve months ended December 31, 2011, an increase of $264,000 in employee benefits expense and a decrease of $90,000 in applicable income taxes, or a net reduction in net income of $174,000 from $10,705,000 to $10,531,000 or approximately $0.06 per share. Comprehensive income also was reduced by $211,000, from $12,582,000 to $12,371,000.

As of December 31, 2011, an increase in other liabilities (postretirement liability) of $2,525,000 and an increase in other assets (deferred taxes) of $858,000 resulted in a net decrease to Stockholder’s Equity of $1,667,000, from $129,000,000 to $127,333,000.

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PENSECO FINANCIAL SERVICES CORPORATION

FINANCIAL HIGHLIGHTS

(unaudited)

(in thousands, except per share amounts based on weighted average shares outstanding in each period)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except per share amounts)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share amounts)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011

(unaudited)

(in thousands, except per share amounts)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011

(unaudited)

(in thousands, except per share amounts)

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About Penseco Financial Services Corporation

Penseco Financial Services Corporation, through its subsidiary Penn Security Bank & Trust Company, operates thirteen offices in Lackawanna, Luzerne, Wayne and Monroe counties. The Company’s stock is quoted on the OTC Bulletin Board, under the symbol, “PFNS”.

Safe Harbor Forward-Looking Statements

This press release, as well as other written communications made from time to time by the Company and its subsidiaries and oral communications made from time to time by management of the Company, may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Such forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential”. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Company cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services and other factors that may be described in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Reconciliation of Non-GAAP Financial Measures

Core Operations Calculation

Certain financial measures for the three and twelve months ended December 31, 2011 reported herein exclude the effect of the reversal of a contingent liability recorded in connection with the 2009 acquisition of Old Forge Bank. Management of the Company believes that investors’ understanding of the Company’s performance is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of the Company’s ongoing results of operations. These non-GAAP measures should not be considered a substitute for GAAP-basis measures and results. Our non-GAAP measures may not be comparable to non-GAAP measures of other companies.

The following table presents the reconciliation of non-GAAP financial measures to reported GAAP financial measures:

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Return on average equity (ROE) and return on average assets (ROA) for the twelve months ended December 31, 2012 was 8.07% and 1.14%, respectively. ROE was 8.45% (8.18% excluding the reversal of a contingent liability) and ROA was 1.13% (1.09% excluding the reversal of a contingent liability) for the same period last year. The dividend payout ratio was 52.01% for the twelve months ended December 31, 2012 and 52.34% (54.02% excluding the reversal of a contingent liability) for the same period last year.

Tangible Assets and Equity

Management believes that tangible assets, tangible equity, and the related ratios of tangible equity to tangible assets, tangible book value per share, and market value to tangible book value, are useful to investors in evaluating the Company’s results of operations and financial condition. Our intangible assets, namely goodwill and the core deposit intangible, are the result of our accounting for the Merger, and we would not be able to sell those assets separately from all other assets of the business. Tangible equity and tangible book value per share are used generally as conservative measures of net worth, approximating liquidation value.

The following table presents a reconciliation of tangible assets / tangible equity.

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