Exhibit 99.1

NEWS RELEASE

Penseco Financial Services Corporation Reports Earnings as of September 30, 2013

SCRANTON, PA, November 1, 2013 – Penseco Financial Services Corporation (OTCQB: PFNS) (the “Company”), the Scranton, Pennsylvania based financial holding company of Penn Security Bank & Trust Company, reported net income for the three months ended September 30, 2013 of $2,486,000, or $0.76 per basic and diluted weighted average share, compared with $2,552,000, or $0.78 per basic and diluted weighted average share, from the year ago period, a decrease of $66,000, or 2.6%. The most recent period includes $215,000 of merger related expenses not included in the same period of 2012. Net interest income decreased $269,000, or 3.4%. Net interest income, after provision for loan and lease losses, decreased $323,000, or 4.3%, during the 2013 period, due to a decrease in interest income of $579,000, or 6.2%, and an increase in the provision for loan and lease losses of $54,000, offset by a decrease in interest expense of $310,000, or 24.6%, from lower funding costs.

The Company reported net income for the nine months ended September 30, 2013 of $7,851,000, or $2.40 per basic and diluted weighted average share, compared with $7,881,000, or $2.41 per basic and diluted weighted average share, from the year ago period, a decrease of $30,000, or 0.4%. Net interest income decreased $896,000, or 3.7%. Net interest income, after provision for loan and lease losses, decreased $1,444,000, or 6.1%, during the 2013 period, due to a decrease in interest income of $2,100,000, or 7.4%, and an increase in the provision for loan and lease losses of $548,000, offset by a decrease in interest expense of $1,204,000, or 29.0%, from lower funding costs. The decrease in interest income for the three and nine months ended September 30, 2013 was primarily attributable to investment and loan cash flows being reinvested at lower yields, including excess reserve deposits held at the Federal Reserve Bank of Philadelphia.

Agreement and Plan of Merger

On June 28, 2013, the Company entered into a merger agreement with Peoples Financial Services Corp. (“Peoples”), pursuant to which the Company would merge with and into Peoples. The merger agreement provides that shareholders of the Company will receive a fixed ratio of 1.3636 shares of Peoples common stock for each outstanding share of Company common stock, subject to potential adjustment upon the occurrence of certain unforeseen events described in the merger agreement. Upon closing of the transaction, the Company’s shareholders are expected to own approximately 59% of the common stock in the combined company and Peoples shareholders are expected to own approximately 41%. As of September 30, 2013, Peoples had preliminary, unaudited consolidated total assets, net loans, total deposits, and total shareholders’ equity of $714.4 million, $505.1 million, $621.8 million, and $68.3 million, respectively. Upon completion of the merger, the combined company is expected to have approximately $1.6 billion in assets. The transaction has been unanimously approved by the board of directors of both the Company and Peoples, and has received required approvals from the Federal Deposit Insurance Corporation, the Pennsylvania Department of Banking, and the Federal Reserve Bank of Philadelphia. The transaction remains subject to the approvals of the shareholders of both the Company and Peoples and the satisfaction of other customary closing conditions. It is expected to be completed in the fourth quarter of 2013.

The Company believes the merger, once completed, will present an opportunity to significantly increase earnings per share for Penseco shareholders and better position the Company for growth into the future. We expect the merger will create a larger, more profitable company that can better serve the consumer and business segments that we target in our footprint. The special meeting of Penseco shareholders’, relative to the plan of merger between Penseco and Peoples will be held on Thursday, November 21, 2013, at 2:00 p.m. at the Hilton Hotel Scranton and Conference Center, 100 Adams Avenue, Scranton, Pa. For more information relating to the merger, please see the discussion under the heading “Additional Information About The Transaction and Where to Find It” included in this press release.

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Non-Interest Income

Total non-interest income decreased $87,000, or 2.8%, to $3,027,000 for the three months ended September 30, 2013, compared with $3,114,000 for the corresponding period in 2012. There was an increase of $78,000 in trust department income, an increase of $39,000 in service charges on deposit accounts, an increase of $70,000 in brokerage fee income, an increase of $63,000 in other fee income and an increase of $30,000 in net realized gains on securities, offset by a $183,000 decrease in merchant transaction income, due to lower volume and a $172,000 decrease in other operating income, due to decreases in the gains on the sale of mortgage loans.

Total non-interest income increased $280,000, or 3.2%, to $8,910,000 for the nine months ended September 30, 2013, compared with $8,630,000 for the corresponding period in 2012. This increase was attributable to an increase of $169,000 in trust department income, an increase of $119,000 in brokerage fee income, an increase of $105,000 in other fee income and an increase of $136,000 in other operating income, offset by a $332,000 decrease in merchant transaction income, due to lower volume.

Non-Interest Expenses

Total non-interest expenses increased $25,000, or 0.3%, to $7,365,000 for the three months ended September 30, 2013 compared with $7,340,000 for the corresponding period in 2012. This increase was attributable to a $214,000 increase in other operating expense, primarily due to merger related costs of $215,000. Salaries and employee benefits decreased $73,000. Merchant transaction expense decreased $126,000, due to lower volume.

Total non-interest expenses decreased $595,000, or 2.7%, to $21,346,000 for the nine months ended September 30, 2013 compared with $21,941,000 for the corresponding period in 2012. This decrease was attributable to a $202,000 decrease in salaries and employee benefits due to lower full time equivalent employees compared to the prior year period. Merchant transaction expenses decreased $246,000, due to lower volume. FDIC insurance assessments decreased $98,000 in part from the refund of the pre-paid FDIC insurance assessment.

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 1.20% and 1.09% as of September 30, 2013 and 2012, respectively, and 1.11% as of December 31, 2012.

Non-accrual loans equaled $2,688,000, or 0.41% of outstanding loans, at September 30, 2013, representing an increase of $408,000 from $2,280,000 in non-accrual loans, or 0.37% of outstanding loans, at December 31, 2012. There were no commitments to lend additional funds to borrowers whose loans were in non-accrual status at September 30, 2013.

Net loan charge-offs amounted to $404,000, or 0.06%, of average outstanding loans for the nine months ended September 30, 2013, compared to $522,000, or 0.08%, of average outstanding loans outstanding for the nine months ended September 30, 2012.

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

Applicable income taxes decreased $369,000, or 48.5%, and $539,000, or 23.4%, for the three months and nine months ended September 30, 2013, respectively, from the corresponding period of the prior year. In the three and nine month periods, the decrease was primarily due to lower taxable income.

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 OTCQB market place maintained by OTC Market Groups, Inc. under the symbol “PFNS”.

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Forward-Looking Statements

We make statements in this press release, and we may from time to time make other statements, regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Penseco Financial Services Corporation, Penn Security Bank & Trust Company or its subsidiaries (collectively, the “Company” or “we”), as well as those of Peoples Financial Services Corp., Peoples Neighborhood Bank, and its subsidiaries (collectively, “Peoples”), 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 and Peoples claim the protection of the safe harbor for forward-looking statements contained in the PSLRA.

The Company and Peoples caution 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 and Peoples’ 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 (“SEC”) from time to time.

In addition to these risks, acquisitions and business combinations—such as the business combination currently proposed between the Company and Peoples—present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder—or take longer—to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to the Company or Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.

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 and Peoples assume 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.

The following disclosure is made in accordance with Rule 165 of the Securities and Exchange Commission:

Additional Information About The Transaction and Where to Find It

Peoples Financial Services Corporation has filed a registration statement (Registration No. 333-190587) that includes a joint proxy statement/prospectus of Penseco Financial Services Corporation and Peoples Financial Services Corp. The parties have filed and will file other relevant documents concerning the proposed merger with the SEC. WE URGE INVESTORS TO READ THE FINAL PROXY STATEMENT/PROSPECTUS, WHICH WAS FIRST MAILED TO SHAREHOLDERS ON OR ABOUT OCTOBER 11, 2013, AND ANY OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors are able to obtain these documents free of charge at the SEC’s website, http://www.sec.gov/. In addition, documents filed with the SEC by Penseco Financial Services Corporation are available free of charge by written request to Mr. Patrick Scanlon, Senior Vice President, Finance Division Head, Penn Security Bank & Trust Company, 150 North Washington Avenue, Scranton, Pennsylvania 18503 or oral request to Mr. Scanlon at (570) 346-7741, extension 2316. Documents filed with the SEC by Peoples Financial Services Corporation are available free of charge by written request to Scott A. Seasock, Senior Vice President & Chief Financial Officer, 82 Franklin Avenue, Hallstead, PA 18822 or oral request to Scott A. Seasock at (570) 879-6110.

This document is not an offer to sell shares of Peoples’ securities which may be issued in the proposed transaction. Such securities are offered only by means of the joint proxy statement/prospectus referred to above.

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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)

6

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 SEPTEMBER 30, 2013 AND 2012

(unaudited)

(in thousands, except per share amounts)

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PENSECO FINANCIAL SERVICES CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(unaudited)

(in thousands, except per share amounts)

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Reconciliation of Non-GAAP Financial Measures

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 April 2009 merger of Old Forge Bank into Penn Security Bank & Trust Company, 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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