CONTACT: Teresa Ciambotti, SVP, Director of Investor Relations
(814) 231-6401

HEADLINE: OMEGA REPORTS SECOND QUARTER EARNINGS

FOR IMMEDIATE RELEASE – July 30, 2007

STATE COLLEGE, PA – Omega Financial Corporation (OMEF-NASDAQ) reported second quarter net income of $5.0 million versus $5.3 million for the same period last year. For the six months ended June 30, net income was $10.5 million in 2007 compared to $10.7 million for 2006, company officials said. Fully diluted earnings per share were $0.39 for the quarter and $0.83 for the year to date.

Donita R. Koval, Omega’s president and chief executive officer stated that earnings were significantly impacted by increased loan loss provisions but noted, “Our basic strategies of managing interest rate risk, focusing on transaction and service revenues and containing operating costs are sound and favorably reflected in the continued strength of the net interest margin, increases in non-interest income as well as reductions in non-interest expense.”

The loan loss provision for the second quarter of 2007 totaled $0.7 million, an increase of $0.6 million over the same period in 2006. The level of the second quarter provision relates primarily to specific provisions recorded for two commercial borrowers. While non-performing loans have declined $4.3 million from the first quarter to $22.7 million at June 30, 2007, net charge-offs increased $5.3 million and certain commercial credits were downgraded during the quarter. Management is actively working to minimize the ultimate losses on these credits.  No material provision was necessary in the second quarter for the large commercial borrower who filed for bankruptcy protection in 2006. This borrower emerged from bankruptcy reorganization in May 2007 and as a result $4.4 million of this borrower’s loans were charged off in the second quarter. These loans had been appropriately considered in establishing the allowance for loan losses in prior periods. As of June 30, 2007, total loans outstanding to this borrower totaled $14.2 million, with a specific allocation of the loan loss reserve totaling $1.8 million, which management deems to be adequate. These loans remain on non-accrual status until the new entity demonstrates consistent positive operating cash flow.

The company’s net interest margin for the second quarter was 4.19% on a fully tax-equivalent basis compared to 4.09% for the same period last year. Koval attributed this 10 basis point increase to a disciplined approach in pricing both loans and deposits. She noted that while this approach has limited balance sheet growth in recent periods it has set the foundation for profitable future growth. For the year, net interest margin grew by 15 basis points as compared to the same period in 2006.

The net interest margin grew despite decreases in net interest income of $.4 million for the quarter and $0.6 million for the year. Koval noted that the 2006 second quarter net interest income included $0.3 million attributable to three branches sold in the final quarter of last year. Those three branches accounted for $0.5 million of Omega’s interest income as of June 30, 2006.

Excluding gains on the sale of assets, other income increased $0.4 million or 5.8% for the quarter and $0.5 million or 3.8% year to date. Non interest income grew for both the quarter and year to date in several categories, including revenues on deposits, wealth management and other income. The three branch locations sold in 2006 contributed $0.06 million in the second quarter 2006 and $0.1 million for the six months ended June 30, 2006.

The company continues to be successful in controlling non-interest expense, evidenced by a decline in expenses of $.6 million or 4.15% for the quarter and $1.5 million or 4.85% year to date. Expense savings came in several areas due primarily to renegotiations on key operating contracts and restructuring of certain business lines, including the formation of a mortgage joint venture.

Quarterly and annual reports, a corporate profile, stock quotes and other financial data can be accessed through the Omega web site at www.omegafinancial.com. Financial statements and selected financial highlights are summarized on the following pages.

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated * )
	Three Months Ended June 30,									Six Months Ended June 30,
	2007			2006			% Change			2007			2006			% Change
Earnings:
Net income	$	4,963		$	5,345			(7.1	)%	$	10,546		$	10,688			(1.3	)%
Per share statistics: *
Diluted earnings	$	.39		$	.42			(7.1	)%	$	.83		$	.85			(2.4	)%
Dividends declared — common		.31			.31			—			.62			.62			—
Book value — common		25.6			25.41			2.2			25.96			25.41			2.2
Book value — tangible		12.83			11.89			7.9			12.83			11.89			7.9
Market value — High		29.66			34.10			(13.0	)		34.49			34.21			0.8
Low		26.67			28.19			(5.4	)		26.67			27.88			(4.3	)
Financial position at period end:
Assets	$	1,807,454		$	1,908,401			(5.3	)%	$	1,807,454		$	1,908,401			(5.3	)%
Net loans		1,131,198			1,178,251			(4.0	)		1,131,198			1,178,251			(4.0	)
Deposits		1,317,084			1,420,652			(7.3	)		1,317,084			1,420,652			(7.3	)
Shareholders’ equity		327,743			318,819			2.8			327,743			318,819			2.8
Average Balances:
Assets	$	1,801,121		$	1,908,861			(5.6	)%	$	1,801,565		$	1,913,847			(5.9	)%
Net loans		1,134,049			1,180,827			(4.0	)		1,133,310			1,184,835			(4.3	)
Deposits		1,306,376			1,416,002			(7.7	)		1,304,332			1,411,955			(7.6	)
Shareholders’ equity		330,369			321,768			2.7			329,838			321,662			2.5
Non-Performing Loans at period end:
Non-accrual loans	$	20,717		$	22,922			(9.6	)%	$	20,717		$	22,922			(9.6	)%
Accruing loans past due 90 days or more		1,999			2,769			(27.8	)		1,999			2,769			(27.8	)
Profitability ratios — annualized: *
Return on average assets		1.10	%		1.12	%		(1.6	)%		1.17	%		1.12	%		4.50	%
Return on tangible assets		1.21			1.23			(1.6	)		1.29			1.23			4.88
Return on average stated equity (1)		6.01			6.64			(9.6	)		6.39			6.65			(3.80	)
Return on average tangible equity (2)		12.07			14.06			(14.2	)		12.87			14.09			(8.70	)
Net interest margin — fully tax equivalent		4.19			4.09			2.4			4.19			4.04			3.70
Shares outstanding at period end: *
Common		12,626,042			12,548,843			0.6	%		12,626,042			12,548,843			0.6	%
(1) Average stated equity is equal to average shareholders’ equity.
(2) Average tangible equity represents average shareholders’ equity less average intangibles and goodwill.

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
	(unaudited)
	June 30,			December 31,
	2007			2006
Assets
Cash and due from banks		59,595			56,225
Interest bearing deposits with other banks		10,553			12,073
Trading securities		57			48
Investment securities available for sale		285,290			291,807
Other investments		12,193			12,087
Investment in unconsolidated subsidiary		1,625			1,625
Loans held for sale		—			204
Total portfolio loans		1,144,029			1,152,188
Less: Allowance for loan losses		(12,831	)		(17,344	)
Net portfolio loans		1,131,198			1,134,844
Premises and equipment, net		29,777			30,861
Other real estate owned		945			512
Bank-owned life insurance		77,627			76,341
Investment in limited partnerships		5,404			5,763
Core deposit intangibles		5,273			5,641
Other intangibles		1,030			1,085
Goodwill		159,408			159,387
Other assets		27,479			27,315
TOTAL ASSETS	$	1,807,454		$	1,815,818
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	234,332		$	232,335
Interest bearing		1,082,752			1,093,428
Total deposits		1,317,084			1,325,763
Short-term borrowings		65,382			65,712
ESOP debt		1,288			1,481
Junior subordinated debentures		55,944			56,193
Long-term debt		27,167			27,877
Other interest bearing liabilities		869			858
Other liabilities		11,977			12,723
TOTAL LIABILITIES		1,479,711			1,490,607
Shareholders’ Equity
Preferred stock, par value $5.00 per share:
Authorized - 5,000,000 shares, none issued
Common stock, par value $5.00 per share:
Authorized - 25,000,000 shares;
Issued -
12,860,658 shares at June 30, 2007;
12,823,471 shares at December 31, 2006		64,319			64,133
Outstanding -
12,626,042 shares at June 30, 2007;
12,622,802 shares at December 31, 2006
Capital surplus		103,973			103,149
Retained earnings		167,391			164,653
Accumulated other comprehensive income		(86	)		313
Unearned compensation related to ESOP debt		(716	)		(859	)
Cost of common stock in treasury:
234,616 shares at June 30, 2007;
200,669 shares at December 31, 2006		(7,138	)		(6,178	)
TOTAL SHAREHOLDERS’ EQUITY		327,743			325,211
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,807,454		$	1,815,818

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007		2006
Interest Income:
Interest and fees on loans	$	19,900		$	20,372		$	39,723	$	40,209
Interest and dividends on investment securities		3,482			3,077			6,827		6,181
Other interest income		141			241			313		342
TOTAL INTEREST INCOME.		23,523			23,690			46,863		46,732
Interest Expense:
Interest on deposits		6,647			6,409			13,099		12,304
Interest on short-term borrowings		676			663			1,399		1,434
Interest on long-term debt and
other interest bearing liabilities		1,256			1,248			2,497		2,512
TOTAL INTEREST EXPENSE		8,579			8,320			16,995		16,250
NET INTEREST INCOME		14,944			15,370			29,868		30,482
Provision for loan losses		745			100			1,355		220
INCOME FROM CREDIT ACTIVITIES		14,199			15,270			28,513		30,262
Other Income:
Service fees on deposit accounts		2,654			2,598			5,051		4,952
Service fees on loans		430			443			757		825
Earnings on bank-owned life insurance		646			552			1,286		1,159
Trust fees		1,101			1,025			2,194		2,145
Investment and insurance product sales		701			618			1,552		1,542
Gain (loss) on sale of loans and other assets		(48	)		64			30		121
Net gains on the sale of investment securities		(37	)		176			338		238
Other		1,291			1,215			2,659		2,381
TOTAL OTHER INCOME		6,738			6,691			13,867		13,363
Other Expense:
Salaries and employee benefits		6,882			7,308			14,099		14,793
Net occupancy expense		1,096			1,083			2,151		2,188
Equipment expense		1,195			1,143			2,330		2,271
Data processing service		599			673			1,209		1,318
Pennsylvania shares tax		786			728			1,572		1,440
Amortization of intangible assets		212			222			423		443
Other		3,634			3,870			6,668		7,449
TOTAL OTHER EXPENSE		14,404			15,027			28,452		29,902
Income before income taxes and discontinued operations		6,533			6,934			13,928		13,723
Income tax expense		1,570			1,568			3,382		3,051
Income from continuing operations		4,963			5,366			10,546		10,672
Discontinued operations:
Income from discontinued operations, net of tax		—			125			—		162
Loss on disposal of discontinued operations, net of tax		—			(146	)		—		(146	)
Income (Loss) from discontinued operations		—			(21	)		—		16
NET INCOME	$	4,963		$	5,345		$	10,546	$	10,688
Net income per common share
Basic	$	0.39		$	0.43		$	0.83	$	0.85
Diluted	$	0.39		$	0.42		$	0.83	$	0.85
Net income per common share from continuing operations
Basic	$	0.39		$	0.43		$	0.83	$	0.85
Diluted	$	0.39		$	0.43		$	0.83	$	0.85
Net income per common share from discontinued operations
Basic	$	—		$	—		$	—	$	—
Diluted	$	—		$	—		$	—	$	—
Weighted average shares and equivalents
Basic		12,624			12,572			12,630		12,579
Diluted		12,641			12,616			12,650		12,624
Dividends declared per share
Common	$	0.31		$	0.31		$	0.62	$	0.62

Omega Financial Corporation
Consolidated Net Interest Income Analysis
Second Quarter 2007 vs. Second Quarter 2006
(In thousands)
	Second Quarter 2007								Second Quarter 2006								Increase/(Decrease)
	Average						Income/		Average						Income/		Due To			Due To			Net
	Balance			Rate			Expense		Balance			Rate			Expense		Volume			Rate			Change
INTEREST EARNING ASSETS
Money Market Investments
Interest Bearing Deposits		10,781			3.79	%		102		11,158			4.13	%		115		(4	)		(9	)		(13	)
Federal Funds Sold		2,991			5.36	%		39		10,237			4.94	%		126		(94	)		7			(87	)
Total Money Market Investments		13,772			4.14	%		141		21,395			4.52	%		241		(98	)		(2	)		(100	)
Investment Securities
U.S. Treasuries and Agencies		272,130			4.57	%		3,099		279,381			3.64	%		2,537		(68	)		630			562
State and Municipals-Tax Free		1,000			3.20	%		8		39,609			2.63	%		260		(299	)		47			(252	)
Corporate Securities & Stock		26,222			5.72	%		375		19,201			5.83	%		280		100			(5	)		95
Total Investment Securities		299,352			4.67	%		3,482		338,191			3.65	%		3,077		(266	)		671			405
Loans
Commercial Loans		239,706			7.60	%		4,540		265,236			7.31	%		4,835		(481	)		186			(295	)
Tax Free Commercial Loans		17,276			4.88	%		210		19,315			4.76	%		229		(25	)		6			(19	)
Real Estate Loans		654,687			6.75	%		11,046		706,380			6.73	%		11,892		(881	)		35			(846	)
Tax Free Real Estate Loans		38,873			4.31	%		419		40,507			4.30	%		435		(17	)		1			(16	)
Personal Loans and Leases		198,688			7.44	%		3,685		164,415			7.27	%		2,981		633			71			704
Total Loans		1,149,230			6.94	%		19,900		1,195,853			6.82	%		20,372		(770	)		298			(472	)
Total Earning Assets		1,462,354			6.45	%		23,523		1,555,439			6.10	%		23,690		(1,136	)		969			(167	)
FUNDING SOURCES
Interest Bearing Liabilities
Checking with Interest		302,067			0.84	%		633		314,395			0.73	%		572		(23	)		84			61
Money Market Deposits		71,323			1.50	%		266		88,131			1.50	%		330		(64	)		0			(64	)
Savings Deposits		180,993			0.55	%		248		200,977			0.55	%		275		(27	)		0			(27	)
CD’S, $100,000 and Over		85,523			4.40	%		939		97,755			4.04	%		984		(129	)		84			(45	)
Other Time Deposits		439,783			4.16	%		4,561		476,046			3.58	%		4,248		(340	)		653			313
Total Interest Bearing Deposits		1,079,689			2.47	%		6,647		1,177,304			2.18	%		6,409		(583	)		820			237
Short-Term Borrowings		65,970			4.11	%		676		71,576			3.71	%		663		(54	)		67			13
Long-Term Debt		84,997			5.87	%		1,247		85,236			5.82	%		1,239		(4	)		12			8
Other Interest Bearing Liabilities		853			4.22	%		9		806			4.47	%		9		1			(1	)		—
Demand Deposits		226,687								238,698
Cash		(47,125	)							(50,685	)
Other		51,283								32,504
Total Funding Sources		1,462,354			2.35	%		8,579		1,555,439			2.14	%		8,320		(640	)		899			259
Net Int Spread — Net Int Income					4.10	%		14,944					3.96	%		15,370		(496	)		70			(426	)
Net Int Spread — Tax Equivalent					4.19	%							4.09	%
Net Int Income — Tax Equivalent								15,287								15,868
Tax Rate					35	%							35	%