**EXHIBIT      99.1**

**PRESS      RELEASE**

| **FOR                IMMEDIATE RELEASE** |
|------------------------------------------|
| Contact:                                 | Terry                Wasko, Treasurer and Chief Financial Officer |
| Telephone                Number:         | 610-965-5959 |
| E-mail:                                  | twasko@eastpennbank.com |

**EAST      PENN FINANCIAL CORPORATION**

**ANNOUNCES**

**EARNINGS      FOR THE FIRST QUARTER OF 2007**

**(April      18, 2007) – EMMAUS, PA - **
**(Nasdaq Capital Market: EPEN)**

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**www.eastpennbank.com**

| **East                          Penn Financial Corporation**             |   |                                   |      |   |
|--------------------------------------------------------------------------|--------|----------------------------------------|-----------|--------|
| **Consolidated                          Selected Financial Information** |   |                                   |      |   |   |   |
|                                                                     |   | **March                          31,** |      |
| (in                          thousands, except share data)               |   | **2007**                               |      |   | **2006** |   |
|                                                                     |   | (Unaudited)                            |      |
| **Balance                          Sheet Data:**                         |   |                                   |      |   |   |   |
| Total                          assets                                    |   | $                                      | 450,759   |   |   | $ | 399,996 |   |
| Securities                          available for sale                   |   |                                   | 70,884    |   |   |   | 70,830 |   |
| Securities                          held to maturity, at cost            |   |                                   | -         |   |   |   | 1,026 |   |
| Mortgages                          held for sale                         |   |                                   | 606       |   |   |   | 321 |   |
| Total                          loans (net of unearned discount)          |   |                                   | 327,851   |   |   |   | 295,512 |   |
| Allowance                          for loan losses                       |   |                                   | (3,328    | )      |   |   | (3,151 | ) |
| Premises                          and equipment, net                     |   |                                   | 9,622     |   |   |   | 9,628 |   |
|                                                                     |   |                                   |      |   |   |   |   |   |
| Non-interest                          bearing deposits                   |   |                                   | 47,592    |   |   |   | 44,674 |   |
| Interest                          bearing deposits                       |   |                                   | 333,534   |   |   |   | 283,496 |   |
| Total                          deposits                                  |   |                                   | 381,126   |   |   |   | 328,170 |   |
| Securities                          sold under agreements to repurchase  |   |                                   | 9,077     |   |   |   | 3,996 |   |
| Short-term                          borrowings                           |   |                                   | -         |   |   |   | 808 |   |
| Long-term                          debt                                  |   |                                   | 24,000    |   |   |   | 35,000 |   |
| Junior                          subordinated debentures                  |   |                                   | 8,248     |   |   |   | 8,248 |   |
|                                                                     |   |                                   |      |   |   |   |   |   |
| Stockholders'                          equity                            |   |                                   | 25,431    |   |   |   | 22,502 |   |
|                                                                     |   |                                   |      |   |   |   |   |   |
| Common                          shares outstanding                       |   |                                   | 6,305,262 |   |   |   | 6,304,262 |   |
| Book                          value per share                            |   | $                                      | 4.03      |   |   | $ | 3.57 |   |

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|                                                                                                               |   | **Three                          Months**    |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                                                                               |   | **Ended                          March 31,** |   |
| (in                          thousands, except share data)                                                         |   | **2007**                                     |   |   | **2006** |   |
|                                                                                                               |   | (Unaudited)                                  |   |
| **Statement                          of Income Data:**                                                             |   |                                         |   |   |   |   |
| Total                          interest income                                                                     |   | $                                            | 6,340  |   |   | $ | 5,542 |   |
| Total                          interest expense                                                                    |   |                                         | 3,101  |   |   |   | 2,246 |   |
| Net                          interest income                                                                       |   |                                         | 3,239  |   |   |   | 3,296 |   |
| Provision                          for loan losses                                                                 |   |                                         | 45     |   |   |   | 90 |   |
| Net                          interest income after provision                                                       |   |                                         | 3,194  |   |   |   | 3,206 |   |
| Other                          income                                                                              |   |                                         | 578    |   |   |   | 643 |   |
| Other                          expenses                                                                            |   |                                         | 2,676  |   |   |   | 2,801 |   |
|                                                                                                               |   |                                         |   |   |   |   |   |   |
|                             Net income before taxes                                                      |   |                                         | 1,096  |   |   |   | 1,048 |   |
| Income                          tax expense                                                                        |   |                                         | 198    |   |   |   | 218 |   |
|                                                                                                               |   |                                         |   |   |   |   |   |   |
|                             Net income                                                                   |   | $                                            | 898    |   |   | $ | 830 |   |
|                                                                                                               |   |                                         |   |   |   |   |   |   |
| Basic                          earnings per share (1)                                                              |   | $                                            | 0.14   |   |   | $ | 0.13 |   |
| Diluted                          earnings per share (2)                                                            |   | $                                            | 0.14   |   |   | $ | 0.13 |   |
| Cash                          dividends per common share                                                           |   | $                                            | 0.12   |   |   | $ | 0.11 |   |
|                                                                                                               |   |                                         |   |   |   |   |   |   |
| **Selected                          Financial Ratios:**                                                            |   |                                         |   |   |   |   |   |   |
| Return                          on average equity                                                                  |   |                                         | 14.66  | % |   |   | 14.92 | % |
| Return                          on average assets                                                                  |   |                                         | 0.83   | % |   |   | 0.84 | % |
| Net                          interest margin (3)                                                                   |   |                                         | 3.43   | % |   |   | 3.78 | % |
| Efficiency                          ratios:                                                                        |   |                                         |   |   |   |   |   |   |
|   Operating                          expenses as a percentage of revenues                                |   |                                         | 69.26  | % |   |   | 71.10 | % |
|   Operating                          expenses as a percentage of average                          assets |   |                                         | 2.53   | % |   |   | 2.88 | % |
| Tier                          1 leverage capital                                                                   |   |                                         | 7.76   | % |   |   | 7.93 | % |
| Loans                          (4)                          as a                          percent of deposits      |   |                                         | 86.02  | % |   |   | 90.05 | % |
| Average                          equity to average assets                                                          |   |                                         | 5.67   | % |   |   | 5.64 | % |
|                                                                                                               |   |                                         |   |   |   |   |   |   |

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|    **Selected                            Asset Quality Ratios:**                                                                                                                                                                                |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Allowance                            for loan losses / Total loans (4)                                                                                                                                                                                         |   |   | 1.02   | %      |   |   | 1.07 | % |
| Allowance                            for loan losses /                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Non-performing                            assets (5)                                                                                                                                                                                         |   |   | 817.69 | %      |   |   | 431.64 | % |
| Non-accrual                            loans / Total loans (4)                                                                                                                                                                                                 |   |   | 0.08   | %      |   |   | 0.23 | % |
| Non-performing                            assets / Total assets                                                                                                                                                                                                |   |   | 0.09   | %      |   |   | 0.19 | % |
| Net                            charge-offs (recoveries) /   Average                            loans (4)                                                                                                                                        |   |   | (0.01  | %)     |   |   | 0.00 | % |
|                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| (1) Based                            upon the weighted average number of shares of common                            stock outstanding for                            the applicable periods.                                                             |   |
| (2) Based                            upon the weighted average number of shares plus dilutive                            potential common                            share equivalents outstanding for the applicable                            periods. |   |
| (3) Calculated                            on a fully tax-equivalent basis.                                                                                                                                                                                |   |
| (4) The                            term “loans” includes loans held in the portfolio, including non-accruing                            loans, and excludes loans held for sale.                                                              |   |
| (5) Includes                            non-accrual loans.                                                                                                                                                                                                |   |