EXHIBIT 99.1

Codorus Valley Bancorp, Inc.

Reports Third Quarter Earnings for 2012

FOR IMMEDIATE RELEASE ― York, Pennsylvania (October 15, 2012) -- Codorus Valley Bancorp, Inc. (Nasdaq: CVLY), the parent company of PeoplesBank, A Codorus Valley Company, today announced net income available to common shareholders (earnings) of $1,809,000 or $0.41 per share basic, $0.40 per share diluted, for the quarter ended September 30, 2012, compared to the $4,000 or $0.00 per share, basic and diluted, for the quarter ended September 30, 2011. For the first nine months of 2012, net income available to common shareholders was $6,619,000 or $1.49 per share basic, $1.47 per share diluted, compared to $2,896,000 or $0.66 per share, basic and diluted, for the first nine months of 2011. All per share amounts were adjusted for the 5% common stock dividend that was declared on October 9, 2012, by the Board of Directors.

The increase in earnings for both periods was due primarily to a decrease in the provision for loan losses, which reflected adequacy of the allowance for loan losses and improving credit quality. An increase in net interest income, which resulted from an increase in the average volume of earning assets, principally commercial loans, and a decrease in funding costs, due primarily to lower rates, also contributed to the increase in earnings for both periods. Other factors that favorably impacted current period earnings was the infrequent recognition of pretax gains totaling $382,000 from the sale of investment securities in the third quarter, and a decrease in preferred stock dividends and discount accretion. U.S. agency mortgage-backed securities (MBS) were selectively sold at a gain to remove relatively low yielding instruments that were prepaying principal faster than anticipated and small odd-lot pieces from the MBS portfolio. The decrease in preferred stock dividends and discount accretion reflects a decrease in the dividend rate and the redemption of preferred stock under the U.S. Treasury’s Capital Purchase Program in the prior year.

On September 30, 2012, total assets were approximately $1,064,000,000, representing a $51,000,000 or 5 percent increase above September 30, 2011. Compared to one year ago, asset growth occurred primarily in the commercial loan portfolio and was funded primarily by an increase in core deposits. Additional financial information, which is unaudited, is provided in the Financial Highlights section of this Earnings Release.

President and CEO Larry J. Miller commented, “We are pleased with the company’s financial performance so far this year, which has enabled us to maintain a quarterly cash dividend of $0.11 per common share and to also declare a 5% common stock dividend. The record date for both dividends is October 23, 2012. The cash dividend is payable on November 13, 2012, and the stock dividend is payable on or before December 11, 2012.”

Codorus Valley Bancorp, Inc. is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank, a Codorus Valley Company, comprised currently of eighteen financial centers located throughout York County, Pennsylvania and in Hunt Valley, Bel Air and Westminster, Maryland. Application has been filed with appropriate regulatory authorities to establish a financial center at 3160 Carlisle Road, Dover, Pennsylvania. In addition to a full range of business and consumer banking services, the company also offers mortgage banking, wealth management, and real estate settlement services. Additional information is available on the bank’s website at www.peoplesbanknet.com.

Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Announcement. These forward-looking statements are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the corporation and its subsidiaries. When words such as “believes,” “expects,” “anticipates,” or similar expressions occur in this Press Announcement, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the corporation and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Announcement. Those factors include, but are not limited to: credit risk, changes in market interest rates, competition, economic downturn or recession, and government regulation and supervision. The Company undertakes no obligation to update or revise any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.

Questions or comments concerning this Earnings Release should be directed to:

Larry J. Miller

Vice-Chairman, President, and CEO

Codorus Valley Bancorp, Inc.

717-747-1500

888-846-1970

lmiller@peoplesbanknet.com

Condensed Consolidated Statements of Income (Unaudited)

(in thousands of dollars, except per share data)

Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands of dollars)

Selected Financial Data (Unaudited)

(1) excludes accumulated other comprehensive income (loss), principally unrealized gains (losses) on investment securities

(2) net interest income (tax-equivalent) as a percentage of average interest earning assets

(3) noninterest expense as a percentage of net interest income and noninterest income (tax-equivalent)

(4) annualized for the quarterly periods presented

(5) excludes loans held for sale

(6) noninterest expense less noninterest income as a percentage of average assets

(7) per share amounts and shares outstanding were adjusted for the common stock dividend declared October 9, 2012

-- END --