EXHIBIT 99 Codorus Valley Bancorp, Inc. Press Release Dated January 14, 2005 PRESS RELEASE -- CODORUS VALLEY BANCORP, INC. CASH DIVIDEND DECLARATION AND FINANCIAL HIGHLIGHTS On January 11, 2005, the Board of Directors of Codorus Valley Bancorp, Inc. (Nasdaq: CVLY) declared a regular quarterly cash dividend of $.125 (12.5 cents) per share, payable on or before February 8, 2005, to shareholders of record January 25, 2005. Codorus Valley Bancorp, Inc. earned $1,192,000 or $.39 per diluted share for the fourth quarter of 2004, compared to $735,000 or $.24 per diluted share for the same quarter of 2003. The increase in fourth quarter 2004 earnings was the result of an 18% increase in net interest income from a larger volume of earning assets and a 32% increase in noninterest income, principally fees and commissions. Codorus Valley earned $4,008,000 or $1.32 per diluted share for the full year 2004, compared to $3,432,000 or $1.14 per diluted share for 2003. The $576,000 or 17 percent increase in net income was the result of increases in net interest income and noninterest income and a decrease in loan loss provision, which more than offset a modest increase in noninterest expense. The $858,000 or 7 percent increase in net interest income was attributable to a larger volume of earning assets and lower funding costs, which were rate driven. Noninterest income, including gains, was $246,000 or 6 percent above the prior year. With the exception of gains from sales of mortgages and investment securities, which were adversely affected by rising market interest rates, most other categories of noninterest income increased, particularly fees on deposits, trust service fees, and commissions earned from the sale of mutual fund, annuity and insurance products. The $133,000 or 24 percent decrease in loan loss provision was attributable to improved asset quality. The $479,000 or 4 percent increase in noninterest expense was due primarily to increases in personnel and marketing expenses, which supported planned business growth. Total assets were approximately $408 million on December 31, 2004, an increase of $35 million or 9 percent above December 31, 2003. Asset growth occurred primarily in business and consumer loans, which were funded primarily by core deposits. Additional financial information is provided in the financial highlights section of this news release. Codorus Valley Bancorp, Inc. is a financial services holding company headquartered at Codorus Valley Corporate Center, 105 Leader Heights Road, York, PA. Codorus Valley operates primarily through its financial services subsidiary, PeoplesBank, A Codorus Valley Company. PeoplesBank provides a full range of business and consumer banking services through twelve financial centers throughout York County. It also offers mortgage banking, investment, insurance, trust and real estate settlement services. Additional information is available on the bank's website -- www.peoplesbanknet.com. Management of Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Release. 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 Release, management 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 Release. Questions or comments regarding this Press Release should be directed to Larry J. Miller, President & CEO, Codorus Valley Bancorp, Inc. by telephone at 717-747-1500 or 800-646-1970; or by e-mail at lmiller@peoplesbanknet.com. January 14, 2005 York, Pennsylvania 4 CODORUS VALLEY BANCORP, INC. Financial Highlights CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands of dollars, except per share data) Three months ended Year ended December 31, December 31, 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Net interest income $3,822 $3,232 $13,924 $13,066 Provision for loan losses 215 75 420 553 Noninterest income 1,172 891 4,272 3,407 Gain on sale of securities 0 0 38 266 Gain on sale of mortgages 97 70 316 707 Noninterest expense 3,295 3,148 12,769 12,290 Federal income tax 389 235 1,353 1,171 ------------ ------------ ------------ ------------ Net income $1,192 $735 $4,008 $3,432 ============ ============ ============ ============ Net income per share (diluted) $0.39 $0.24 $1.32 $1.14 Cash dividends per share $0.125 $0.114 $0.488 $0.446 Stock dividends (paid in June) 5% 5% CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (in thousands of dollars, except per share data) December 31, 2004 2003 ------------ ------------ Cash & short term investments $8,085 $12,408 Investment securities 74,140 74,069 Loans 300,260 262,363 Allowance for loan losses (1,865) (1,694) Other assets 27,051 25,401 ------------ ------------ Total assets $407,671 $372,547 ============ ============ Deposits $329,537 $304,282 Borrowed funds 39,493 31,234 Other liabilities 2,659 3,242 Stockholders' equity 35,982 33,789 ------------ ------------ Total liabilities & stockholders' equity $407,671 $372,547 ============ ============ Shares outstanding 2,992,590 2,979,516 Book value per share $12.02 $11.34 Market value per share $19.25 $19.90 Return on average assets (ytd) 1.03% 0.96% Return on average equity (ytd) 11.48% 10.33% Capital leverage ratio 9.09% 9.15% Nonperforming assets ratio 0.72% 0.72% Note: Shares outstanding and per share amounts were adjusted for stock dividends. 5