The Gratz National Bank

Market Street
Gratz, PA 17030

FDIC Certificate #: 14863   Bank Charter Class: N

Definition	Dollar figures in thousands	The Gratz National Bank Gratz, PA June 30, 2009	The Gratz National Bank Gratz, PA June 30, 2008
All Summary Information
Assets and Liabilities
1	Total employees (full-time equivalent)	23	23
2	Total assets	132,055	119,491
3	Cash and due from depository institutions	9,852	8,586
4	Interest-bearing balances	7,511	6,005
5	Securities	27,639	22,742
6	Federal funds sold & reverse repurchase agreements	2,281	1,438
7	Net loans & leases	86,021	81,024
8	Loan loss allowance	892	928
9	Trading account assets	0	0
10	Bank premises and fixed assets	1,511	1,168
11	Other real estate owned	115	0
12	Goodwill and other intangibles	0	0
13	All other assets	4,636	4,533
14	Life insurance assets	3,055	2,928
15	Total liabilities and capital	132,055	119,491
16	Total liabilities	116,029	104,379
17	Total deposits	110,586	97,810
18	Interest-bearing deposits	98,579	87,182
19	Deposits held in domestic offices	110,586	97,810
20	% insured (estimated - see note)	83.30%	90.55%
21	Federal funds purchased & repurchase agreements	0	0
22	Trading liabilities	0	0
23	Other borrowed funds	4,099	5,375
24	Subordinated debt	0	0
25	All other liabilities	1,344	1,194
26	Total equity capital	16,026	15,112
27	Total bank equity capital	16,026	15,112
28	Perpetual preferred stock	0	0
29	Common stock	150	150
30	Surplus	150	150
31	Undivided profits	15,726	14,812
32	Noncontrolling interests in consolidated subsidiaries	0	N/A
	Memoranda:
33	Noncurrent loans and leases	192	941
34	Noncurrent loans that are wholly or partially guaranteed by the U.S. government	0	0
35	Income earned, not collected on loans	594	581
36	Earning assets	123,452	111,209
37	Long-term assets (5+ years)	16,449	11,753
38	Average Assets, year-to-date	128,021	118,109
39	Average Assets, quarterly	130,514	119,342
40	Volatile liabilities	15,944	13,088
41	Insider loans	1,139	1,111
42	FHLB advances	4,099	5,375
43	Loans and leases held for sale	0	0
44	Unused loan commitments	6,883	7,043
45	Tier 1 (core) risk-based capital	15,863	15,052
46	Tier 2 risk-based capital	892	894
47	Total risk weighted assets	76,471	71,508
48	Total unused commitments	6,883	7,043
49	Restructured Loans and leases	0	0
50	Derivatives	0	0
	Past due and nonaccrual assets
	Fiduciary and related services
	Note: Insured deposit amounts or deposit thresholds reflect permanent insurance limits in effect as of the report date, not withstanding temporary increases currently in effect.
Income and Expense		(Year-to-date)	(Year-to-date)
51	Number of institutions reporting	1	1
52	Total interest income	3,412	3,397
53	Total interest expense	1,221	1,449
54	Net interest income	2,191	1,948
55	Provision for loan and lease losses	200	50
56	Total noninterest income	200	176
57	Fiduciary activities	0	0
58	Service charges on deposit accounts	116	108
59	Trading account gains & fees	0	0
60	Additional noninterest income	84	68
61	Total noninterest expense	1,182	968
62	Salaries and employee benefits	578	515
63	Premises and equipment expense	139	116
64	Additional noninterest expense	465	337
65	Pre-tax net operating income	1,009	1,106
66	Securities gains (losses)	0	0
67	Applicable income taxes	344	330
68	Income before extraordinary items	665	776
69	Extraordinary gains - net	0	0
70	Net income attributable to bank	665	776
71	Net income attributable to noncontrolling interests	0	N/A
72	Net income attributable to bank and noncontrolling interests	665	N/A
73	Net charge-offs	289	0
74	Cash dividends	103	93
75	Sale, conversion, retirement of capital stock, net	0	0
76	Net operating income	665	776
	Memo:
	Gross fiduciary and related services income
Performance and Condition Ratios
77	% of unprofitable institutions	N/A	N/A
78	% of institutions with earnings gains	N/A	N/A
Performance Ratios (%, annualized)		(Year-to-date)	(Year-to-date)
79	Yield on earning assets	5.70%	6.16%
80	Cost of funding earning assets	2.04%	2.63%
81	Net interest margin	3.66%	3.53%
82	Noninterest income to earning assets	0.33%	0.32%
83	Noninterest expense to earning assets	1.97%	1.76%
84	Net operating income to assets	1.04%	1.31%
85	Return on assets (ROA)	1.04%	1.31%
86	Pretax return on assets	1.58%	1.87%
87	Return on equity (ROE)	8.40%	10.45%
88	Retained earnings to average equity (YTD only)	7.10%	9.20%
89	Net charge-offs to loans	0.67%	0
90	Credit loss provision to net charge-offs	69.20%	N/A
91	Earnings coverage of net loan charge-offs (x)	4.18	N/A
92	Efficiency ratio	49.44%	45.57%
93	Assets per employee ($ millions)	5.74	5.20
94	Cash dividends to net income (YTD only)	15.49%	11.98%
	Condition Ratios (%)
95	Loss allowance to loans	1.03%	1.13%
96	Loss allowance to noncurrent loans	464.58%	98.62%
97	Noncurrent assets plus other real estate owned to assets	0.23%	0.79%
98	Noncurrent loans to loans	0.22%	1.15%
99	Net loans and leases to deposits	77.79%	82.84%
100	Net loans and leases to core deposits	90.32%	95.64%
101	Equity capital to assets	12.14%	12.65%
102	Core capital (leverage) ratio	12.05%	12.47%
103	Tier 1 risk-based capital ratio	20.74%	21.05%
104	Total risk-based capital ratio	21.91%	22.30%
	Memoranda:
105	Average assets	128,021	118,109
106	Average earning assets	119,794	110,272
107	Average equity	15,826	14,847
108	Average loans	86,176	81,625 Bottom of Form

Definition	Demographic Information	September 17, 2009	June 30, 2009	June 30, 2008
1	Status	Active	Active	Active
2	Bank Holding Company (Regulatory Top Holder)	See Note!	GNB FINANCIAL SERVICES, INC.	GNB FINANCIAL SERVICES, INC.
3	Certificate#	14863	14863	14863
4	Federal Reserve ID Number	557317	557317	557317
5	Institution Name	The Gratz National Bank	The Gratz National Bank	The Gratz National Bank
6	City,State,Zip	Gratz, PA, 17030	Gratz, PA, 17030	Gratz, PA, 17030
7	Number of Domestic Offices		3	3
8	Number of Foreign Offices		N/A	N/A
9	Interstate Offices		No	No
10	Summary Of Deposits		June 30, 2008	June 30, 2008
11	Current List of Total Offices	Offices
12	Asset Concentration Hierarchy	All Other Specialization < 1 Billion	All Other Under 1 Billion	All Other Under 1 Billion
13	Subchapter S Corporation		No	No
14	County	Dauphin	Dauphin	Dauphin
15	Metropolitan Statistical Area	Harrisburg-Carlisle, PA	Harrisburg-Carlisle, PA	Harrisburg-Carlisle, PA
16	Established Date	November 3, 1934	November 3, 1934	November 3, 1934
17	Date of Deposit Insurance	November 3, 1934	November 3, 1934	November 3, 1934
18	Last Structure Change Process Date	November 3, 2006
19	Last Structure Change Effective Date	March 31, 2006
20	Ownership Type		Stock	Stock
21	Directly Owned by Another Bank?(CERT)		No	No
22	Trust Powers Granted	No	No	No
23	Bank Charter Class	National Bank	National Bank	National Bank
24	Regulator	OCC	OCC	OCC
25	Insurance fund membership	DIF	DIF	DIF
26	FDIC Quarterly Banking Profile Region	New York	New York	New York
27	FDIC Geographic Region	New York	New York	New York
28	FDIC Supervisory Region	New York	NEW YORK	NEW YORK
29	FDIC Field Office	Harrisburg	Harrisburg	Harrisburg
30	Federal Reserve District	Philadelphia	Philadelphia	Philadelphia
31	Office of the Comptroller of the Currency District	Northeast	Northeast	Northeast
32	Office of Thrift Supervision Region	Northeast	Northeast	Northeast
33	Primary Web Address	http://www.gratzbank.com:80/	N/A	N/A