Exhibit 99.1

Susquehanna Bancshares, Inc. Announces Third Quarter 2011 Results

LITITZ, Pa.--(BUSINESS WIRE)--October 26, 2011--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced net income applicable to common shareholders for the third quarter ended September 30, 2011 was $15.0 million, or $0.12 per diluted share, compared to net income of $4.6 million for the third quarter of 2010, or $0.04 per diluted share. Net income for the first nine months of 2011 was $35.8 million, or $0.28 per diluted share, compared to net income of $6.5 million or $0.06 per diluted share for the first nine months of 2010.

"The progress we've achieved in earnings was primarily related to improvement in credit quality, with significant improvement in nearly all credit quality metrics including lower net charge-offs, non-performing assets and provision," said William J. Reuter, Chairman and Chief Executive Officer of Susquehanna Bancshares. "For the first time since the economic downturn, our net charge-off ratio dropped below 1% and the non-performing asset ratio dropped below 2%."

"We successfully completed the acquisition of Abington Bancorp on October 1, and we are pleased to welcome new customers, employees and shareholders to our company," Reuter said. "For the remainder of 2011 and into next year, we are focused on several key objectives: continuing our strong progress in improving credit quality, successfully completing the acquisition and integration of Tower Bancorp, growing deposits and loans, and increasing profitability and dividends paid to shareholders."

Linked Quarter Financial Results (Third Quarter 2011 vs. Second Quarter 2011)

• Net loans and leases increased 1% to $9.7 billion compared to June 30, 2011.
  • Consumer loans increased 5%.
  • Commercial increased 1%.
  • Real estate secured–residential loans increased 1%.
  • Real estate secured–commercial were flat.
  • Real estate construction loans were flat.
  • Leases decreased 3%.

• Total deposits increased 2% to $9.6 billion from June 30, 2011.
  • Interest-bearing demand deposits increased 10%.
  • Non-interest bearing demand deposits decreased 1%.
  • Savings deposits decreased 2%.
  • Time deposits decreased 5%.

Net interest margin decreased 4 basis points to 3.58% compared to 3.62% for the second quarter of 2011.

Non-core items include $1.4 million of net security gains offset by $1.3 million of merger costs in the third quarter compared to $500,000 of net security gains offset by $1.0 million of merger costs in the second quarter.

Third Quarter Financial Results:

• Net loans and leases were flat at $9.7 billion compared to September 30, 2010.
  • Consumer loans increased 21%.
  • Real estate secured-residential loans increased 2%.
  • Real estate secured-commercial loans were flat.
  • Commercial loans decreased 1%.
  • Leases decreased 2%.
  • Real estate-construction loans decreased 16%.
• Total deposits increased 4% to $9.6 billion from September 30, 2010.
  • Interest-bearing demand deposits increased 12%.
  • Savings deposits increased 4%.
  • Non-interest bearing demand deposits increased 3%.
  • Time deposits decreased 4%.
• Net interest margin for the quarter was flat at 3.58% compared to the third quarter of 2010.
• Net charge-offs as a percentage of average loans and leases for the third quarter of 2011 were 0.96% compared to 1.42% for the third quarter of 2010. Non-performing assets as a percentage of loans, leases and foreclosed real estate were 1.95% at September 30, 2011 compared to 2.53% at September 30, 2010. The provision for loan and lease losses for the third quarter of 2011 was $25 million, compared to $40 million for the third quarter of 2010.
• Net charge-offs as a percentage of average loans and leases for the first nine months of 2011 were 1.24% compared to 1.48% for the first nine months of 2010. The provision for loan and lease losses for the first nine months of 2011 was $88 million, compared to $128 million for the first nine months of 2010.

• Common equity was $2.0 billion, or $15.65 per common share, at September 30, 2011 compared to $2.1 billion, or $15.42 per common share, at September 30, 2010. Tangible book value per common share was $7.61 at September 30, 2011 compared to $7.30 per common share at September 30, 2010.
• Susquehanna’s regulatory capital ratios are as follows:

• Return on average assets and average tangible equity⁽²⁾ for the third quarter ended September 30, 2011 finished at 0.42% and 6.66%, respectively. This compared to results of 0.17% and 2.87% for the same measurements, respectively, for the third quarter of 2010.
• Return on average assets and average tangible equity⁽²⁾ for the first nine months of 2011 finished at 0.34% and 5.61%, respectively. This compared to results of 0.18% and 3.05% for the same measurements, respectively, for the first nine months of 2010.

⁽¹⁾Includes deferred tax liability associated with intangibles of $40.3 million.

⁽²⁾A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures – Return on Average Tangible Equity.

Additional Events:

- On October 1, Susquehanna completed the acquisition of Abington Bancorp, Inc., based in Jenkintown, PA. Its 20 branches in Montgomery, Bucks and Delaware counties were rebranded as Susquehanna Bank offices, significantly expanding the bank's branch network in the greater Philadelphia area.

- Susquehanna expects to complete the acquisition of Tower Bancorp, Inc., on February 17, 2012, and has scheduled a special meeting for November 16, 2011, for shareholders to vote on the agreement and plan of merger. The company is on schedule to file the regulatory applications and complete the operational planning for the integration.

Susquehanna will broadcast its third quarter 2011 results conference call over the Internet on October 27, 2011 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of third quarter 2011 results. The discussion may also include forward-looking information and financial goals. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Web site. The event may be accessed by selecting "Investor Relations" near the top right of the home page then “Overview” and clicking on the third quarter webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast will be available on the Web site shortly after the call concludes.

Susquehanna is a financial services holding company with assets of greater than $15 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 240 branch locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $6.1 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. Investor information may be requested on Susquehanna’s Web site at www.susquehanna.net.

This press release contains certain financial information determined by methods other than in accordance with GAAP. Susquehanna’s management uses these non-GAAP measures in its analysis of the company’s performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information.

The presentation of these non-GAAP financial measures is intended to supplement investors’ understanding of Susquehanna’s core business activities. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties including risks relating to Susquehanna’s plans to complete and integrate its pending acquisition of Tower Bancorp, Inc. and the other risks set forth in Susquehanna's filings with the Securities and Exchange Commission. Susquehanna encourages readers of this release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Forward-looking statements speak only as of the date they are made. Susquehanna does not intend to update publicly any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events except as required by law.

CONTACT:
Susquehanna Bancshares, Inc.
Abram G. Koser, Vice President, Investor Relations
717-625-6305
ir@susquehanna.net