FDIC: Financial Report 99

*Definition*	*Dollar figures in thousands*	The Gratz National Bank Gratz, PA June 30, 2010	The Gratz National Bank Gratz, PA June 30, 2009
All Summary Information
Assets and Liabilities
1	Total employees (full-time equivalent)	23	23
2	Total assets	143,477	132,055
3	Cash and due from depository institutions	11,085	9,852
4	Interest-bearing balances	8,456	7,511
5	Securities	20,779	27,639
6	Federal funds sold & reverse repurchase agreements	9,231	2,281
7	Net loans & leases	94,490	86,021
8	Loan loss allowance	1,211	892
9	Trading account assets	0	0
10	Bank premises and fixed assets	2,133	1,511
11	Other real estate owned	505	115
12	Goodwill and other intangibles	0	0
13	All other assets	5,254	4,636
14	Life insurance assets	3,182	3,055
15	Total liabilities and capital	143,477	132,055
16	Total liabilities	126,117	116,029
17	Total deposits	116,436	110,586
18	Interest-bearing deposits	103,268	98,579
19	Deposits held in domestic offices	116,436	110,586
20	% insured	92.46%	82.99%
21	Federal funds purchased & repurchase agreements	0	0
22	Trading liabilities	0	0
23	Other borrowed funds	8,421	4,099
24	Subordinated debt	0	0
25	All other liabilities	1,260	1,344
26	Total equity capital	17,360	16,026
27	Total bank equity capital	17,360	16,026
28	Perpetual preferred stock	0	0
29	Common stock	150	150
30	Surplus	150	150
31	Undivided profits	17,060	15,726
32	Noncontrolling interests in consolidated subsidiaries	0	0
	Memoranda:
33	Noncurrent loans and leases	351	192
34	Noncurrent loans that are wholly or partially guaranteed by the U.S. government	0	0
35	Income earned, not collected on loans	517	594
36	Earning assets	132,956	123,452
37	Long-term assets (5+ years)	18,959	16,449
38	Average Assets, year-to-date	138,754	128,021
39	Average Assets, quarterly	140,043	130,514
40	Volatile liabilities	22,560	15,944
41	Insider loans	1,069	1,139
42	FHLB advances	8,421	4,099
43	Loans and leases held for sale	0	0
44	Unused loan commitments	8,626	6,883
45	Tier 1 (core) risk-based capital	17,204	15,863
46	Tier 2 risk-based capital	1,059	892
47	Total risk weighted assets	84,542	76,471
48	Total unused commitments	8,626	6,883
49	Restructured Loans and leases	0	0
50	Derivatives	0	0
	Past due and nonaccrual assets
	Fiduciary and related services
Income and Expense		*(Year-to-date)*	*(Year-to-date)*
51	Number of institutions reporting	1	1
52	Total interest income	3,514	3,412
53	Total interest expense	823	1,221
54	Net interest income	2,691	2,191
55	Provision for loan and lease losses	248	200
56	Total noninterest income	245	200
57	Fiduciary activities	0	0
58	Service charges on deposit accounts	135	116
59	Trading account gains & fees	0	0
60	Additional noninterest income	110	84
61	Total noninterest expense	1,200	1,182
62	Salaries and employee benefits	608	578
63	Premises and equipment expense	157	139
64	Additional noninterest expense	435	465
65	Pre-tax net operating income	1,488	1,009
66	Securities gains (losses)	0	0
67	Applicable income taxes	433	344
68	Income before extraordinary items	1,055	665
69	Extraordinary gains - net	0	0
70	Net income attributable to bank	1,055	665
71	Net income attributable to noncontrolling interests	0	0
72	Net income attributable to bank and noncontrolling interests	1,055	665
73	Net charge-offs	-1	289
74	Cash dividends	103	103
75	Sale, conversion, retirement of capital stock, net	0	0
76	Net operating income	1,055	665
	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	5.47%	5.70%
80	Cost of funding earning assets	1.28%	2.04%
81	Net interest margin	4.19%	3.66%
82	Noninterest income to earning assets	0.38%	0.33%
83	Noninterest expense to earning assets	1.87%	1.97%
84	Net operating income to assets	1.52%	1.04%
85	Return on assets (ROA)	1.52%	1.04%
86	Pretax return on assets	2.14%	1.58%
87	Return on equity (ROE)	12.50%	8.40%
88	Retained earnings to average equity (YTD only)	11.28%	7.10%
89	Net charge-offs to loans	-0.00%	0.67%
90	Credit loss provision to net charge-offs	-24,800.00%	69.20%
91	Earnings coverage of net loan charge-offs (x)	N/A	4.18
92	Efficiency ratio	40.87%	49.44%
93	Assets per employee ($ millions)	6.24	5.74
94	Cash dividends to net income (YTD only)	9.76%	15.49%
	Condition Ratios (%)
95	Loss allowance to loans	1.27%	1.03%
96	Loss allowance to noncurrent loans	345.01%	464.58%
97	Noncurrent assets plus other real estate owned to assets	0.60%	0.23%
98	Noncurrent loans to loans	0.37%	0.22%
99	Net loans and leases to deposits	81.15%	77.79%
100	Net loans and leases to core deposits	97.04%	90.32%
101	Equity capital to assets	12.10%	12.14%
102	Core capital (leverage) ratio	12.30%	12.05%
103	Tier 1 risk-based capital ratio	20.35%	20.74%
104	Total risk-based capital ratio	21.60%	21.91%
	Memoranda:
105	Average assets	138,754	128,021
106	Average earning assets	128,524	119,794
107	Average equity	16,882	15,826
108	Average loans	93,387	86,176

Definition	Demographic Information	August 27, 2010	June 30, 2010	June 30, 2009
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, 2009	June 30, 2009
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

The Gratz National Bank
32 West Market Street Gratz, PA 17030
FDIC Certificate #: 14863 Bank Charter Class: N