Exhibit 99.1

The following are certain excerpts from a press release issued by Susquehanna Bancshares, Inc. on January 27, 2004, announcing results of operations for the fourth quarter and fiscal year ended December 31, 2003:

Susquehanna Bancshares, Inc., (Susquehanna) (Nasdaq:SUSQ) today announced net income for the year ended December 31, 2003, was $62.4 million, or $1.56 per diluted share, compared to the $61.7 million, or $1.55 per diluted share, earned in 2002. Net income for the fourth quarter of 2003 was $14.0 million, or $0.35 per diluted share, compared to $15.4 million for the fourth quarter of 2002, or $0.39 per diluted share. The fourth quarter 2002 included $1.7 million of after-tax investment security gains, or $0.04 per diluted share.

Full Year/Fourth Quarter Financial Highlights

• Deposits and loans continued to grow consistent with Susquehanna’s strategic plan and its emphasis on bolstering the Company’s sales initiatives. Deposits at December 31, 2003 increased 8% over last year, rising to more than $4.1 billion, led by non-interest bearing demand, which increased by 20%. Loans and leases increased 11% over last year to $4.3 billion at December 31, 2003.

• The net charge-offs to average loans and leases (NCO/Average loans & leases) ratio improved to 0.14% for the fourth quarter 2003 from 0.35% in the fourth quarter 2002. The NCO/Average loans & leases ratio improved to 0.18% for the full year 2003, as compared to 0.23% for 2002.

• Non-interest income increased 8% over the full year results reported for December 31, 2002, rising to $101.8 million in 2003. For the year ended December 31, 2003, core banking contributed 39% of the total and non-bank affiliates 61%. For the twelve months ended December 31, 2003, non-interest income represented 35% of total revenue, an increase from 33% in 2002.

• Total assets increased 7%, rising to $6.0 billion at December 31, 2003.

-1-

• Total assets under management and under administration grew from $3.3 billion in 2002 to $4.2 billion at December 31, 2003. This was led by assets under management maintained by Valley Forge Asset Management, a member of the Susquehanna Wealth Management family of companies, which grew 39% to $2.8 billion from $2.0 billion at December 31, 2002.

Linked Quarter Highlights (Fourth Quarter versus Third Quarter)

• Deposits increased 4% to $4.1 billion. Non-interest bearing demand increased 5%.

• Loans and leases increased 3% to $4.3 billion. Net interest margin increased 19-basis points and improved to 3.62% from 3.43%.

Equity capital was $547 million at December 31, 2003, or $13.73 per share, compared to $534 million at December 31, 2002, or $13.47 per share.

-2-

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

SUMMARY FINANCIAL INFORMATION

(Dollars in thousands, except per share data)

					Twelve Months
	4Q03		4Q02		2003		2002
Balance Sheet (EOP)
Investments	$	988,222	$	1,126,407	$	988,222	$	1,126,407
Loans and leases		4,263,272		3,830,953		4,263,272		3,830,953
Allowance for loan & lease losses (ALLL)		42,672		39,671		42,672		39,671
Total assets		5,953,107		5,544,647		5,953,107		5,544,647
Deposits		4,134,467		3,831,315		4,134,467		3,831,315
Short-term borrowings		355,184		266,724		355,184		266,724
FHLB borrowings		613,850		543,166		613,850		543,166
Vehicle financing		369		31,304		369		31,304
Long-term debt		130,000		180,000		130,000		180,000
Shareholders’ equity		547,382		533,855		547,382		533,855
Stated Book Value per Share		13.73		13.47		13.73		13.47
Tangible Book Value per Share		12.14		11.96		12.14		11.96
Average Balance Sheet
Investments		1,007,239		1,070,166		1,135,705		1,019,330
Loans and leases		4,212,486		3,811,402		3,969,532		3,705,572
Total earning assets		5,308,399		4,954,673		5,182,742		4,798,059
Total assets		5,891,697		5,453,140		5,724,526		5,273,013
Deposits		4,064,984		3,814,216		3,942,279		3,642,799
Short-term borrowings		379,659		236,285		343,942		235,728
FHLB borrowings		596,760		543,765		587,305		544,176
Vehicle financing		1,650		51,588		8,329		103,175
Long-term debt		130,000		152,251		141,425		116,910
Shareholders’ equity		541,381		527,047		538,418		513,299
Income Statement
Net interest income		47,887		47,868		187,006		187,240
Loan & lease loss provision		2,677		3,585		10,222		10,664
Noninterest income		22,656		23,666		101,750		94,150
Noninterest expense		47,846		45,719		189,430		181,663
Income before taxes		20,020		22,230		89,104		89,063
Income taxes		6,006		6,824		26,731		27,342
Net income		14,014		15,406		62,373		61,721
Basic earnings per share		0.35		0.39		1.57		1.56
Diluted earnings per share		0.35		0.39		1.56		1.55
Cash dividends paid per share		0.22		0.21		0.86		0.81
Asset Quality
Net charge-offs (NCO)	$	1,518	$	3,401	$	7,221	$	8,691
Nonaccrual loans & leases		19,037		18,190		19,037		18,190
Restructured loans		5,823		0		5,823		0
OREO		2,893		3,151		2,893		3,151
Total nonperforming assets (NPA)		27,753		21,341		27,753		21,341
Loans & leases 90 days past due		6,538		8,208		6,538		8,208

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

					Twelve Months
	4Q03		4Q02		2003		2002
RATIO ANALYSIS
Credit Quality
NCO / Average loans & leases	0.14	%	0.35	%	0.18	%	0.23	%
NPA / Loans & leases & OREO	0.65	%	0.56	%	0.65	%	0.56	%
ALLL / Nonperforming loans & leases	171.65	%	218.09	%	171.65	%	218.09	%
ALLL / Total loans & leases	1.00	%	1.04	%	1.00	%	1.04	%
Capital Adequacy
Equity / Assets	9.19	%	9.63	%	9.19	%	9.63	%
Long-term debt / Equity	23.75	%	33.72	%	23.75	%	33.72	%
Profitability
Return on average assets	0.94	%	1.12	%	1.09	%	1.17	%
Return on average equity	10.27	%	11.60	%	11.58	%	12.02	%
Net interest margin	3.62	%	3.88	%	3.65	%	3.96	%

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

CONSOLIDATED BALANCE SHEETS

	December 31, 2003			December 31, 2002
	(in thousands, except share data)
Assets
Cash and due from banks	$	176,240		$	156,320
Short-term investments:
Restricted		44,817			30,611
Unrestricted		34,145			22,025
Total short-term investments		78,962			52,636
Securities available for sale, at fair value		983,882			1,122,230
Securities held to maturity, at amortized cost
(Fair values of $4,340 and $4,177)		4,340			4,177
Loans and leases, net of unearned income		4,263,272			3,830,953
Less: Allowance for loan and lease losses		42,672			39,671
Net loans and leases		4,220,600			3,791,282
Premises and equipment, net		62,961			60,108
Other real estate owned		2,893			3,151
Accrued income receivable		17,494			20,579
Bank-owned life insurance		200,555			143,330
Goodwill		59,123			54,897
Intangible assets with finite lives		4,372			4,998
Other assets		141,685			130,939
	$	5,953,107		$	5,544,647
Liabilities and Shareholders' Equity
Deposits:
Demand	$	724,474		$	601,272
Interest-bearing demand		1,295,593			1,137,875
Savings		508,889			470,317
Time		1,251,058			1,300,445
Time of $100 or more		354,453			321,406
Total deposits		4,134,467			3,831,315
Short-term borrowings		355,184			266,724
FHLB borrowings		613,850			543,166
Vehicle financing		369			31,304
Long-term debt		130,000			180,000
Accrued interest, taxes, and expenses payable		33,736			40,314
Deferred taxes		106,336			95,478
Other liabilities		31,783			22,491
Total liabilities		5,405,725			5,010,792
Shareholders' equity:
Common stock, $2.00 par value, 100,000,000 shares authorized; issued: 39,861,317 at December 31, 2003 and 39,638,447 at December 31, 2002		79,723			79,277
Additional paid-in capital		66,264			62,858
Retained earnings		403,450			375,244
Accumulated other comprehensive income (loss), net of taxes ($1,107) and $8,662		(2,055	)		16,476
Total shareholders' equity		547,382			533,855
	$	5,953,107		$	5,544,647

5

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended December 31,				Year Ended December 31,
(Dollars in thousands, except per share data)	2003		2002		2003		2002
INTEREST INCOME:
Loans and leases, including fees	$	61,979	$	64,774	$	245,980	$	260,420
Securities:            Taxable		8,617		12,809		37,894		52,497
Tax-exempt		283		536		1,441		2,445
Short-term investments		164		304		705		1,351
Total interest income		71,043		78,423		286,020		316,713
INTEREST EXPENSE:
Deposits:
Interest-bearing demand		2,215		3,118		9,473		12,429
Savings		391		775		1,999		4,036
Time		11,981		15,590		51,419		66,034
Short-term borrowings		851		739		3,342		3,919
FHLB borrowings		5,366		7,065		22,420		28,108
Vehicle financing		12		528		241		6,211
Long-term debt		2,340		2,740		10,120		8,736
Total interest expense		23,156		30,555		99,014		129,473
Net interest income		47,887		47,868		187,006		187,240
Provision for loan and lease losses		2,677		3,585		10,222		10,664
Net interest income, after provision for loan and lease losses		45,210		44,283		176,784		176,576
NONINTEREST INCOME:
Service charges on deposit accounts		5,225		4,567		19,798		16,905
Vehicle origination and servicing fees		5,012		5,222		26,132		24,727
Merchant credit card fees		0		0		0		8,328
Asset management fees		2,904		2,499		10,274		9,824
Income from fiduciary-related activities		1,392		1,187		5,783		4,853
Net gain on sale of loans and leases		872		997		9,700		4,626
Income from bank-owned life insurance		2,024		1,569		6,963		6,540
Commissions on insurance sales		2,262		1,850		8,354		3,666
Net gain on securities		0		2,569		2,110		3,357
Other		2,965		3,206		12,636		11,324
Total noninterest income		22,656		23,666		101,750		94,150
NONINTEREST EXPENSES:
Salaries and employee benefits		22,749		21,691		91,151		82,571
Occupancy		3,557		3,244		13,813		12,522
Furniture and equipment		2,258		2,070		8,712		8,372
Amortization of intangible assets		157		157		626		639
Vehicle residual value		1,653		1,546		6,486		6,384
Vehicle delivery and preparation		3,818		3,294		12,934		9,444
Merchant credit card servicing		0		0		0		7,937
Other		13,654		13,717		55,708		53,794
Total noninterest expenses		47,846		45,719		189,430		181,663
Income before income taxes		20,020		22,230		89,104		89,063
Provision for income taxes		6,006		6,824		26,731		27,342
NET INCOME	$	14,014	$	15,406	$	62,373	$	61,721
Earnings per share:
Basic	$	0.35	$	0.39	$	1.57	$	1.56
Diluted	$	0.35	$	0.39	$	1.56	$	1.55
Cash dividends	$	0.22	$	0.21	$	0.86	$	0.81
Average shares outstanding:
Basic		39,833		39,619		39,742		39,496
Diluted		40,165		39,856		40,037		39,781

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest rates and interest differential—taxable equivalent basis

	For the Three Month Period Ended December 31, 2003						For the Three Month Period Ended December 31, 2002
(Dollars in thousands)	Average Balance			Interest		Rate (%)	Average Balance			Interest		Rate (%)
Assets
Short-term investments	$	88,674		$	164	0.73	$	73,105		$	304	1.65
Investment securities:
Taxable		983,574			8,617	3.48		1,023,375			12,809	4.97
Tax-advantaged		23,665			435	7.30		46,791			825	7.00
Total investment securities		1,007,239			9,052	3.57		1,070,166			13,634	5.05
Loans and leases, (net):
Taxable		4,143,131			61,258	5.87		3,759,721			64,146	6.77
Tax-advantaged		69,355			1,109	6.35		51,681			966	7.42
Total loans and leases		4,212,486			62,367	5.87		3,811,402			65,112	6.78
Total interest-earning assets		5,308,399		$	71,584	5.35		4,954,673		$	79,050	6.33
Allowance for loan and lease losses		(41,926	)					(39,359	)
Other non-earning assets		625,224						537,826
Total assets	$	5,891,697					$	5,453,140
Liabilities
Deposits:
Interest-bearing demand	$	1,251,816		$	2,215	0.70	$	1,100,821		$	3,118	1.12
Savings		508,749			391	0.30		469,259			775	0.66
Time		1,602,991			11,981	2.97		1,668,709			15,590	3.71
Short-term borrowings		379,659			851	0.89		236,285			739	1.24
FHLB borrowings		596,760			5,366	3.57		543,765			7,065	5.15
Vehicle financing		1,650			12	2.89		51,588			528	4.06
Long-term debt		130,000			2,340	7.14		152,251			2,740	7.14
Total interest-bearing liabilities		4,471,625		$	23,156	2.05		4,222,678		$	30,555	2.87
Demand deposits		701,428						575,427
Other liabilities		177,263						127,988
Total liabilities		5,350,316						4,926,093
Equity		541,381						527,047
Total liabilities & shareholders’ equity	$	5,891,697					$	5,453,140
Net interest income / yield on average earning assets				$	48,428	3.62				$	48,495	3.88

1. Average loan balances include non accrual loans.

2. Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%.

3. For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY (continued)

Interest rates and interest differential—taxable equivalent basis

	For the Twelve Month Period Ended December 31, 2003						For the Twelve Month Period Ended Decemer 31, 2002
(Dollars in thousands)	Average Balance			Interest		Rate (%)	Average Balance			Interest		Rate (%)
Assets
Short-term investments	$	77,505		$	705	0.91	$	73,157		$	1,351	1.85
Investment securities:
Taxable		1,104,863			37,893	3.43		966,156			52,497	5.43
Tax-advantaged		30,842			2,217	7.19		53,174			3,762	7.07
Total investment securities		1,135,705			40,110	3.53		1,019,330			56,259	5.52
Loans and leases, (net):
Taxable		3,910,353			243,236	6.22		3,657,342			257,977	7.05
Tax-advantaged		59,179			4,222	7.13		48,230			3,758	7.79
Total loans and leases		3,969,532			247,458	6.23		3,705,572			261,735	7.06
Total interest-earning assets		5,182,742		$	288,273	5.56		4,798,059		$	319,345	6.66
Allowance for loan and lease losses		(40,868	)					(39,193	)
Other non-earning assets		582,652						514,147
Total assets	$	5,724,526					$	5,273,013
Liabilities
Deposits:
Interest-bearing demand	$	1,195,656		$	9,473	0.79	$	991,096		$	12,429	1.25
Savings		498,157			1,999	0.40		461,947			4,036	0.87
Time		1,601,495			51,419	3.21		1,643,785			66,034	4.02
Short-term borrowings		343,942			3,341	0.97		235,728			3,919	1.66
FHLB borrowings		587,305			22,420	3.82		544,176			28,108	5.17
Vehicle financing		8,329			241	2.89		103,175			6,211	6.02
Long-term debt		141,425			10,120	7.16		116,910			8,736	7.47
Total interest-bearing liabilities		4,376,309		$	99,013	2.26		4,096,817		$	129,473	3.16
Demand deposits		646,971						545,971
Other liabilities		162,828						116,926
Total liabilities		5,186,108						4,759,714
Equity		538,418						513,299
Total liabilities & shareholders’ equity	$	5,724,526					$	5,273,013
Net interest income / yield on average earning assets				$	189,260	3.65				$	189,872	3.96

1. Average loan balances include non accrual loans.

2. Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%.

3. For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

Susquehanna Bancshares, Inc.

P.O. Box 1000

Lititz, PA 17543

LOANS AND LEASES

Loans and leases, net of unearned income were as follows:

	December 31, 2003		December 31, 2002
Commercial, financial, and agricultural	$	621,438	$	478,181
Real estate—construction		549,672		456,663
Real estate secured—residential		1,306,371		1,246,939
Real estate secured—commercial		1,016,360		988,633
Consumer		337,989		343,537
Leases		431,442		317,000
Total loans and leases	$	4,263,272	$	3,830,953