CONTACT:	Teresa Ciambotti, SVP, Director of Investor Relations (814) 231-6401
HEADLINE:	OMEGA THIRD QUARTER EARNINGS INCREASE 9%

FOR IMMEDIATE RELEASE – Monday, October 22, 2007

STATE COLLEGE, PA – Third quarter 2007 net income rose just over 9% for Omega Financial Corporation (OMEF-NASDAQ) compared to the prior year quarter, company officials said.

Donita R. Koval, Omega’s president and chief executive officer, noted that the $5.846 million in net income for the third quarter 2007 represents an increase of $489,000 or 9.1% over the $5.357 million achieved during the same period last year. For the year-to-date, net income rose to $16.392 million from $16.045 million, an increase of $347,000 or 2.12%.

“The strong performance we’ve turned in for the third quarter indicates the soundness of our basic strategies of managing the net interest margin, continuing diligent cost controls and ongoing efforts to grow non-interest income” Koval said.

On a per-share basis, fully-diluted earnings for the third quarter 2007 were $0.46, an increase of 7.0% over the $0.43 of last year’s third quarter. The company’s Return on Average Assets for the third quarter 2007 was 1.30% and Return on Equity was 7.06%, representing an increase of 15.3% and 6.4%, respectively from last year’s third quarter. Common share dividends declared were $0.31 for the quarter, unchanged from 2006.

For the year to date period, fully-diluted earnings were $1.30 per share, an increase of 2.4% from $1.27 in 2006. Return on Average Assets was 1.21% and Return on Average Equity was 6.62% compared to 1.12% and 6.64% in 2006.

The company’s third quarter provision for loan loss dropped significantly when compared to the same quarter in 2006, falling more than 77%. The large provision in the third quarter of 2006 related to one commercial borrower who had filed for bankruptcy protection. For the year to date period, the provision has increased by nearly 40%, as the company provided for several problem loans during the first three quarters of 2007.

Despite slight increases in delinquencies and non-performing loans since June 30, 2007, the allowance for loan losses remained steady at $12.8 million as several improving credits on the watchlist offset these negative impacts. The company does not have any direct exposure in the sub-prime lending markets, however, management is continuing to monitor economic trends in the markets in which Omega has exposure.

The company’s net interest margin (NIM) continued to grow, reflecting Omega’s disciplined approach in pricing both loans and deposits, Koval said. For the third quarter of 2007, NIM was 4.20% compared to 4.08% in 2006 .The NIM grew by 13 basis points for the year to date period, rising to 4.18% compared to 4.05% in 2006, all on a fully tax equivalent basis.

Net interest income decreased $388,000 or 2.52% in the third quarter 2007 versus the same period in 2006. For the year to date period, net interest income decreased just over $1 million, or 2.18%. The decrease in net interest income in 2007 can be attributed to declines in earning assets and liabilities as well as the fact that the 2006 amounts included interest income earned from the three branches that were sold in the final quarter of the year. These branches contributed $257,000 in net interest income in the third quarter of 2006 and $804,000 for year to date period in 2006.

Excluding gains on the sale of investments, loans or other assets, non-interest income increased $630,000 or 9.7% for the third quarter 2007 compared to 2006. The increase was fueled by gains in service fees on deposits and trust fees as well as receipt of $367,000 in interest received on a tax refund. For the year to date, the increase was $1,125 million or 5.8%. The three branch locations sold in 2006, contributed $58,000 in non-interest income in the third quarter of 2006 and $171,000 year to date as of September 30, 2006.

The Company’s continued focus on expense control in a variety of operating areas was reflected in the decline in non-interest expense of $170,000 or 1.17% and $1,620,000 or 3.64% for the quarter and year to date periods, respectively. The three branch locations, which were sold in 2006 accounted for $149,000 in non-interest expense in the third quarter 2006 and $555,000 year to date through September 30, 2006.

“Our strategies of diversifying our revenue stream and maintaining vigilance on costs continue to enhance our earnings,” Koval observed.

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 September 30,									Nine Months Ended September 30,
	2007			2006			% Change			2007			2006			% Change
Earnings:
Net income	$	5,846		$	5,357			9.1	%	$	16,392		$	16,045			2.2	%
Per share statistics: *
Diluted earnings	$	.46		$	.43			7.0	%	$	1.30		$	1.27			2.4	%
Dividends declared — common		.31			.31			—			.93			.93			—
Book value — common		26.22			25.64			2.3			26.22			25.64			2.3
Book value — tangible		13.10			12.39			5.8			13.10			12.39			5.8
Market value — High		29.74			32.38			(8.2	)		34.49			34.21			0.8
Low		20.97			28.12			(25.4	)		20.97			27.88			(24.8	)
Financial position at period end:
Assets	$	1,782,381		$	1,876,105			(5.0	)%	$	1,782,381		$	1,876,105			(5.0	)%
Net loans		1,114,169			1,136,362			(2.0	)		1,114,169			1,136,362			(2.0	)
Deposits		1,292,494			1,355,125			(4.6	)		1,292,494			1,355,125			(4.6	)
Shareholders’ equity		331,205			322,389			2.7			331,205			322,389			2.7
Average Balances:
Assets	$	1,800,447		$	1,902,284			(5.4	)%	$	1,801,188		$	1,909,950			(5.7	)%
Net loans		1,120,763			1,171,326			(4.3	)		1,129,082			1,180,283			(4.3	)
Deposits		1,306,812			1,407,941			(7.2	)		1,305,168			1,410,603			(7.5	)
Shareholders’ equity		331,132			322,896			2.6			330,274			322,078			2.5
Non-Performing Loans at period end:
Non-accrual loans	$	22,019		$	23,263			(5.3	)%	$	22,019		$	23,263			(5.3	)%
Accruing loans past due 90 days or more		2,494			2,943			(15.3	)		2,494			2,943			(15.3	)
Profitability ratios — annualized: *
Return on average assets		1.30	%		1.13	%		15.3	%		1.21	%		1.12	%		8.3	%
Return on tangible assets		1.43			1.24			15.3			1.34			1.23			8.9
Return on average stated equity (1)		7.06			6.64			6.4			6.62			6.64			(0.3	)
Return on average tangible equity (2)		14.13			13.94			1.4			13.29			14.04			(5.3	)
Net interest margin — fully tax equivalent		4.20			4.08			2.9			4.18			4.05			3.2
Shares outstanding at period end: *
Common		12,632,627			12,573,916			0.5	%		12,632,627			12,573,916			0.5	%
(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)
	September 30,			December 31,
	2007			2006
Assets
Cash and due from banks		51,904			56,225
Interest bearing deposits with other banks		11,163			12,073
Federal funds sold		17,760			—
Trading securities		60			48
Investment securities available for sale		274,871			291,807
Other investments		12,104			12,087
Investment in unconsolidated subsidiary		1,625			1,625
Loans held for sale		—			204
Total portfolio loans		1,126,974			1,152,188
Less: Allowance for loan losses		(12,805	)		(17,344	)
Net portfolio loans		1,114,169			1,134,844
Premises and equipment, net		29,428			30,861
Other real estate owned		945			512
Bank-owned life insurance		75,156			76,341
Investment in limited partnerships		5,202			5,763
Core deposit intangibles		5,089			5,641
Other intangibles		1,003			1,085
Goodwill		159,567			159,387
Other assets		22,335			27,315
TOTAL ASSETS	$	1,782,381		$	1,815,614
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing	$	237,436		$	232,335
Interest bearing		1,055,058			1,093,428
Total deposits		1,292,494			1,325,763
Short-term borrowings		62,880			65,712
ESOP debt		1,189			1,481
Junior subordinated debentures		55,820			56,193
Long-term debt		26,803			27,877
Other interest bearing liabilities		864			858
Other liabilities		11,126			12,723
TOTAL LIABILITIES		1,451,176			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 -
12,867,243 shares at September 30, 2007;
12,823,471 shares at December 31, 2006		64,352			64,133
Outstanding -
12,632,627 shares at September 30, 2007;
12,622,802 shares at December 31, 2006
Capital surplus		104,078			103,149
Retained earnings		169,321			164,653
Accumulated other comprehensive income		1,234			313
Unearned compensation related to ESOP debt		(642	)		(859	)
Cost of common stock in treasury:
234,616 shares at September 30, 2007;
200,669 shares at December 31, 2006		(7,138	)		(6,178	)
TOTAL SHAREHOLDERS’ EQUITY		331,205			325,211
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,782,381		$	1,815,818

OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007		2006
Interest Income:
Interest and fees on loans	$	19,877		$	20,621		$	59,600	$	60,830
Interest and dividends on investment securities		3,433			3,043			10,260		9,224
Other interest income		459			516			772		858
TOTAL INTEREST INCOME.		23,769			24,180			70,632		70,912
Interest Expense:
Interest on deposits		6,882			6,824			19,981		19,128
Interest on short-term borrowings		620			708			2,019		2,142
Interest on long-term debt and
other interest bearing liabilities		1,266			1,259			3,763		3,771
TOTAL INTEREST EXPENSE		8,768			8,791			25,763		25,041
NET INTEREST INCOME		15,001			15,389			44,869		45,871
Provision for loan losses		205			900			1,560		1,120
INCOME FROM CREDIT ACTIVITIES		14,796			14,489			43,309		44,751
Other Income:
Service fees on deposit accounts		2,640			2,594			7,691		7,546
Service fees on loans		350			445			1,107		1,270
Earnings on bank-owned life insurance		643			620			1,929		1,779
Trust fees		1,063			919			3,257		3,064
Investment and insurance product sales		687			668			2,239		2,210
Gain (loss) on sale of loans and other assets		(25	)		112			5		233
Net gains on the sale of investment securities		153			577			491		815
Other		1,719			1,226			4,378		3,607
TOTAL OTHER INCOME		7,230			7,161			21,097		20,524
Other Expense:
Salaries and employee benefits		7,233			7,396			21,332		22,189
Net occupancy expense		995			1,019			3,146		3,207
Equipment expense		1,155			1,111			3,485		3,382
Data processing service		607			683			1,816		2,001
Pennsylvania shares tax		661			598			2,233		2,038
Amortization of intangible assets		211			221			634		664
Other		3,514			3,518			10,182		10,967
TOTAL OTHER EXPENSE		14,376			14,546			42,828		44,448
Income before income taxes and discontinued operations		7,650			7,104			21,578		20,827
Income tax expense		1,804			1,638			5,186		4,689
Income from continuing operations		5,846			5,466			16,392		16,138
Discontinued operations:
Income from discontinued operations, net of tax		—			284			—		446
Loss on disposal of discontinued operations, net of tax		—			(393	)		—		(539	)
Income (Loss) from discontinued operations		—			(109	)		—		(93	)
NET INCOME	$	5,846		$	5,357		$	16,392	$	16,045
Net income per common share
Basic	$	0.46		$	0.43		$	1.30	$	1.28
Diluted	$	0.46		$	0.43		$	1.30	$	1.27
Net income per common share from continuing operations
Basic	$	0.46		$	0.44		$	1.30	$	1.28
Diluted	$	0.46		$	0.43		$	1.30	$	1.28
Net income per common share from discontinued operations
Basic	$	—		$	—		$	—	$	—
Diluted	$	—		$	—		$	—	$	—
Weighted average shares and equivalents
Basic		12,625			12,560			12,628		12,573
Diluted		12,638			12,592			12,644		12,615
Dividends declared per share
Common	$	0.31		$	0.31		$	0.93	$	0.93

Omega Financial Corporation
Consolidated Net Interest Income Analysis
Third Quarter 2007 vs. Third Quarter 2006
(In thousands)
	Third Quarter 2007								Third 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		20,232			4.31	%		220		19,627			3.96	%		196		6			18			24
Federal Funds Sold		18,472			5.13	%		239		24,033			5.28	%		320		(72	)		(9	)		(81	)
Total Money Market Investments		38,704			4.71	%		459		43,660			4.74	%		516		(66	)		9			(57	)
Investment Securities
U.S. Treasuries and Agencies		263,460			4.62	%		3,065		271,150			3.77	%		2,580		(74	)		559			485
State and Municipals-Tax Free		995			3.22	%		8		26,803			2.25	%		151		(189	)		46			(143	)
Corporate Securities & Stock		26,392			5.46	%		360		21,573			5.79	%		312		67			(19	)		48
Total Investment Securities		290,847			4.69	%		3,433		319,526			3.78	%		3,043		(196	)		586			390
Loans
Commercial Loans		226,979			7.76	%		4,439		256,460			7.49	%		4,840		(568	)		167			(401	)
Tax Free Commercial Loans		16,836			4.93	%		209		18,615			4.77	%		224		(22	)		7			(15	)
Real Estate Loans		644,965			6.77	%		10,915		685,903			6.88	%		11,798		(696	)		(187	)		(883	)
Tax Free Real Estate Loans		38,048			4.34	%		413		40,487			4.41	%		446		(26	)		(7	)		(33	)
Personal Loans and Leases		206,661			7.49	%		3,902		184,790			7.11	%		3,313		406			183			589
Total Loans		1,133,489			7.01	%		19,878		1,186,255			6.93	%		20,621		(907	)		164			(743	)
Total Earning Assets		1,463,040			6.49	%		23,770		1,549,441			6.22	%		24,180		(1,169	)		759			(410	)
FUNDING SOURCES
Interest Bearing Liabilities
Checking with Interest		295,529			0.76	%		568		308,275			0.80	%		620		(24	)		(29	)		(52	)
Money Market Deposits		68,573			1.49	%		258		83,756			1.51	%		318		(56	)		(4	)		(60	)
Savings Deposits		176,658			0.55	%		245		196,299			0.55	%		272		(27	)		0			(27	)
CD’S, $100,000 and Over		88,868			4.48	%		1,003		98,731			4.19	%		1,042		(107	)		68			(39	)
Other Time Deposits		444,530			4.29	%		4,808		478,506			3.79	%		4,572		(335	)		571			236
Total Interest Bearing Deposits		1,074,158			2.54	%		6,882		1,165,567			2.32	%		6,824		(549	)		607			58
Short-Term Borrowings		66,120			3.73	%		621		71,891			3.95	%		708		(51	)		(36	)		(87	)
Long-Term Debt		82,865			6.07	%		1,257		84,774			5.90	%		1,250		(29	)		36			7
Other Interest Bearing Liabilities		868			4.15	%		9		819			4.40	%		9		1			(1	)		0
Demand Deposits		232,654								242,375
Cash		(47,190	)							(50,363	)
Other		53,565								34,378
Total Funding Sources		1,463,040			2.38	%		8,769		1,549,441			2.25	%		8,791		(628	)		606			(22	)
Net Int Spread — Net Int Income					4.11	%		15,001					3.97	%		15,389		(541	)		153			(388	)
Net Int Spread — Tax Equivalent					4.20	%							4.08	%
Net Int Income — Tax Equivalent								15,340								15,831
Tax Rate					35	%							35	%