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                                                                   Exhibit 99.1

[PENN SECURITY BANK & TRUST LOGO]

NEWS RELEASE

FOR IMMEDIATE RELEASE


CONTACTS:  Patrick Scanlon, Senior Vice President, Controller
           Penseco Financial Services Corporation
           (570) 346-7741

           Michael L. Jake, Chief Financial Officer
           Old Forge Bank
           (570) 457-8345

          Merger Approved by Old Forge Bank Shareholders and Regulators

SCRANTON AND OLD FORGE, PENNSYLVANIA. March 19, 2009 - Penseco Financial
Services Corporation (OTC Bulletin Board - PFNS), the Scranton, Pennsylvania
based financial holding company of Penn Security Bank & Trust Company, and Old
Forge Bank, a Pennsylvania state chartered bank, today announced that the
shareholders of Old Forge Bank have approved an agreement and plan of merger for
Old Forge Bank to merge with and into Penn Security Bank & Trust Company. Over
eighty-five percent of the outstanding shares of Old Forge Bank were voted for
the proposal.

The merger was approved at a special meeting of the shareholders of Old Forge
Bank, held this morning at the Arcaro & Genell Restaurant & Banquet Facility,
443 South Main Street, Old Forge, Pennsylvania.

In addition to shareholder approval, the management teams of both Penseco
Financial Services Corporation and Old Forge announced that they have received
regulatory approvals for the merger from the Pennsylvania Department of Banking
and the Federal Deposit Insurance Corporation, as well as a non-objection notice
from the Federal Reserve Bank of Philadelphia. The merger is expected to be
effective on or about April 1, 2009.

Old Forge Bank, established in 1909, is headquartered in Old Forge,
Pennsylvania. The bank operates three offices in Lackawanna and Luzerne Counties
in Pennsylvania. Penseco Financial Services Corporation, through its subsidiary
Penn Security Bank & Trust Company, operates nine offices in Lackawanna, Wayne
and Monroe Counties in Pennsylvania. At December 31, 2008, Penseco Financial
Services Corporation had $629 million in assets and Old Forge Bank had $223
million in assets. Penseco's common stock is quoted on the OTC Bulletin Board,
under the symbol, "PFNS".

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FORWARD-LOOKING STATEMENTS

This press release, as well as other written communications made from time to
time by Penseco Financial Services Corporation and its subsidiaries and oral
communications made from time to time by their authorized officers, may contain
statements relating to the future results of the company (including certain
projections and business trends) 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, Penseco Financial
Services Corporation claims the protection of the safe harbor for
forward-looking statements contained in the PSLRA. Penseco Financial Services
Corporation cautions 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 geopolitical conditions; 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
operations, pricing, products and services and other factors which may be
described in the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
and other filings that Penseco Financial Services Corporation makes with the
U.S. Securities and Exchange Commission from time to time. 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 assumes 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.

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