Exhibit 99.1

Susquehanna Bancshares, Inc. Announces Third Quarter 2013 Results

Third Quarter Highlights

• GAAP EPS of $0.24, a 20% Increase Over Third Quarter 2012
• Return on Average Tangible Equity (ROATE) of 13.67%
• Linked Quarter and Year-over-Year Loan Growth of 1.7% and 5.5%, respectively
• Continued Improvement in Credit Quality with Lower Loan Loss Provision

LITITZ, Pa.--(BUSINESS WIRE)--October 23, 2013--Susquehanna Bancshares, Inc. (Susquehanna) (NASDAQ: SUSQ) today announced that it earned net income for the third quarter ended September 30, 2013 of $44.3 million, or $0.24 per diluted share, compared to $36.7 million, or $0.20 per diluted share, for the third quarter of 2012. Net income for the first nine months of 2013 was $132.3 million, or $0.70 per diluted share, compared with $98.0 million, or $0.54 per diluted share for the same period in 2012.

“Our third quarter results showed progress on some of our key objectives, including year-over-year growth in commercial and consumer loans and continued improvement in credit quality,” said William J. Reuter, Chairman and Chief Executive Officer of Susquehanna. “However, the quarter also provided a reminder of the challenging environment we operate in, with the uptick in rates slowing volume in some of our fee-generating activities. We are also seeing an increase in certain operating expenses as we continue to make the necessary investments to succeed in the ‘new normal’ business environment.”

Linked Quarter Results (Third Quarter 2013 vs. Second Quarter 2013)

• Loans and leases increased $218.7 million or 1.7% from June 30, 2013 to $13.4 billion at September 30, 2013. Changes for the quarter in each major loan category were as follows:
  • Commercial loans decreased 0.7%.
  • Real estate – construction loans decreased 0.6%.
  • Real estate secured – residential loans increased 1.1%.
  • Real estate secured – commercial loans increased 2.0%.
  • Consumer loans increased 2.9%.
  • Leases increased 8.0%.

• Total deposits decreased $42.5 million or 0.3% from June 30, 2013 to $12.7 billion at September 30, 2013. Changes for the quarter in each major deposit category were as follows:
  • Non-interest bearing demand deposits decreased 3.1%.
  • Interest-bearing demand deposits increased 1.5%.
  • Savings deposits decreased 1.9%
  • Time deposits decreased 1.3%.

• Net interest margin declined 16 basis points to 3.72% for the third quarter of 2013, compared to 3.88% for the second quarter of 2013. The narrowing of the net interest margin was largely due to a decrease in purchase accounting benefit of 14 basis points.
• Non-interest income decreased to $41.3 million for the third quarter of 2013, compared to $49.1 million for the second quarter. The higher interest rate environment in the third quarter resulted in a reduction in mortgage banking and capital market revenues of $3.4 million. In addition, other income in the second quarter included a one-time gain of $2.3 million in claim proceeds from bank-owned life insurance.
• Non-interest expense for the third quarter of 2013 decreased to $117.7 million, compared to $119.7 million in the second quarter. A reduction in salaries and benefits by $5.0 million due to the adjustment of incentive and benefit accruals more than offset an increase in other non-interest expense items for the third quarter.
• The efficiency ratio for the third quarter of 2013 increased to 61.62%, compared to 59.57% in the second quarter.
• Non-performing assets as a percentage of loans, leases and foreclosed real estate owned decreased to 0.89% at September 30, 2013, compared to 0.94% at June 30, 2013.
• Due to continued improvement in asset quality, the provision for loan and lease losses decreased to $5.0 million compared to $12.0 million in the second quarter. Net charge-offs increased to $16.9 million, or 0.50% of average loans, compared to $9.8 million, or 0.30% of average loans, for the second quarter. As a result, the allowance for loan and lease losses was $166.7 million at September 30, 2013, representing 1.25% of total loans and leases and 164% of nonaccrual loans and leases, compared to $178.6 million at June 30, 2013, representing 1.36% of total loans and leases and 170% of nonaccrual loans and leases.

Year-over-Year Results (Third Quarter 2013 vs. Third Quarter 2012)

• Loans and leases increased $700.8 million or 5.5% from September 30 2012 to $13.4 billion at September 30, 2013. Changes for the twelve month period in each major loan category were as follows:
  • Commercial loans increased 4.8%.
  • Real estate - construction loans decreased 15.4%.
  • Real estate secured - residential loans increased 2.4%.
  • Real estate secured - commercial loans increased 4.1%.
  • Consumer loans increased 12.7%.
  • Leases increased 47.6%.

• Total deposits were generally flat at $12.7 billion at September 30, 2013, as a 2.8% increase in core deposits was offset by a 6.0% decrease in time deposits. Changes for the twelve month period in each major deposit category were as follows:
  • Non-interest-bearing demand deposits decreased 3.0%.
  • Interest-bearing demand deposits increased 4.2%.
  • Savings deposits increased 5.6%.
  • Time deposits decreased 6.0%.
• Net interest margin decreased 20 basis points to 3.72% compared to 3.92% for the third quarter of 2012.
• The efficiency ratio for the third quarter of 2013 increased to 61.62% from 58.98% in the third quarter of 2012, calculated after excluding merger related expenses and losses on the extinguishment of debt for the third quarter of 2012.
• Net charge-offs as a percentage of average loans and leases for the quarter ended September 30, 2013 was 0.50% compared to 0.62% for the third quarter of 2012. Non-performing assets as a percentage of loans, leases and foreclosed real estate was 0.89% at September 30, 2013 compared to 1.16% at September 30, 2012. The provision for loan and lease losses for the quarter ended September 30, 2013 was $5.0 million, compared to $16.0 million for the quarter ended September 30, 2012. The allowance for loan and lease losses was $166.7 million at September 30, 2013, representing 1.25% of total loans and leases and 164% of nonaccrual loans and leases, compared to $186.9 million at September 30, 2012, representing 1.47% of total loans and leases and 158% of nonaccrual loans and leases.
• Return on average assets and average tangible equity ⁽¹⁾ for the third quarter ended September 30, 2013 finished at 0.96% and 13.67%, respectively. This compared to results of 0.81% and 12.41%, for the same measurements, respectively, for the third quarter of 2012.

• Susquehanna’s capital ratios continue to exceed those required to be considered “well-capitalized” under the current regulatory requirements, with a Tier 1 common ratio of 10.41%, Tier 1 risk-weighted capital ratio of 11.52% and a total risk-weighted capital ratio of 12.92%, each as of September 30, 2013. Based on a preliminary analysis of the new capital rules approved in July 2013, management believes that Susquehanna would be fully compliant with the revised capital ratio standards as of September 30, 2013 if they were effective on that date.

⁽¹⁾ Return on average tangible equity is a non-GAAP based financial measure. Please refer to the calculations and management’s reasons for using this measure in the accompanying financial schedules.

Additional Events

• On October 16, 2013, Susquehanna’s Board of Directors declared a fourth quarter dividend of $0.08 per common share, payable November 20, 2013 to shareholders of record as of October 30, 2013.
• As indicated in prior public filings, Susquehanna closed 13 branches in the beginning of the fourth quarter of 2013 and expects to close an additional branch by year-end.

Susquehanna will broadcast its third quarter 2013 results conference call over the Internet on October 24, 2013 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of third quarter 2013 results. The discussion may also include forward-looking information and financial targets. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Website. The event may be accessed by selecting "Investor Relations" near the bottom left of the home page and clicking on the third quarter webcast link. To listen to the live call, please go to the Website 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 Website shortly after the call concludes.

Susquehanna is a financial services holding company with assets of approximately $18.5 billion. Headquartered in Lititz, Pa., Susquehanna provides banking and financial services at 248 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 $7.8 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 through Susquehanna’s Website 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. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of Susquehanna’s business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; deteriorating economic conditions; and other risks and uncertainties, including those detailed 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.

⁽¹⁾ Non-GAAP based financial measures. Please refer to the calculations and management's reasons for using these measures in Appendix A - GAAP to Non-GAAP Reconciliation