The Gratz National Bank  
32 West Market Street  
Gratz, PA 17030  
FDIC Certificate #: 14863   Bank Charter Class: N   
   
Definition
 Dollar figures in thousands The Gratz National Bank The Gratz National Bank  
Gratz, PA Gratz, PA  
30-Sep-11 30-Sep-10  
     All Summary Information  
     Assets and Liabilities      
1 Total employees (full-time equivalent)  31 22  
2 Total assets  171,094 146,071  
3 Cash and due from depository institutions  19,117 11,803  
4 Interest-bearing balances  14,508 9,134  
5 Securities  34,089 22,049  
6 Federal funds sold & reverse repurchase agreements  1,459 8,521  
7 Net loans & leases  107,732 95,069  
8 Loan loss allowance  1,382 1,207  
9 Trading account assets  0 0  
10 Bank premises and fixed assets  2,166 2,147  
11 Other real estate owned  35 218  
12 Goodwill and other intangibles  0 0  
13 All other assets  6,496 6,264  
14 Total liabilities and capital  171,094 146,071  
15 Total liabilities  148,400 128,113  
16 Total deposits  143,370 118,691  
17 Interest-bearing deposits  123,609 105,730  
18 Deposits held in domestic offices  143,370 118,691  
19 % insured  90.23% 90.30%  
20 Federal funds purchased & repurchase agreements  0 0  
21 Trading liabilities  0 0  
22 Other borrowed funds  3,720 8,183  
23 Subordinated debt  0 0  
24 All other liabilities  1,310 1,239  
25 Total equity capital  22,694 17,958  
26 Total bank equity capital  22,694 17,958  
27 Perpetual preferred stock  0 0  
28 Common stock  150 150  
29 Surplus  3,597 150  
30 Undivided profits  18,947 17,658  
31 Noncontrolling interests in consolidated subsidiaries  0 0  
  Memoranda:
32 Noncurrent loans and leases  1,566 655  
33 Noncurrent loans that are wholly or partially guaranteed by the U.S. government  304 307  
34 Income earned, not collected on loans  578 514  
35 Earning assets  157,788 134,773  
36 Long-term assets (5+ years)  32,123 20,987  
37 Average Assets, year-to-date  152,890 140,583  
38 Average Assets, quarterly  160,182 144,774  
39 Total risk weighted assets  99,349 85,420  
40 Adjusted average assets for leverage capital purposes  165,273 145,284  
41 Life insurance assets  4,375 4,213  
42 General account life insurance assets  3,561 N/A  
43 Separate account life insurance assets  0 N/A  
44 Hybrid life insurance assets  814 N/A  
45 Volatile liabilities  5,524 11,562  
46 Insider loans  2,098 1,051  
47 FHLB advances  3,720 8,183  
48 Loans and leases held for sale  0 0  
49 Unused loan commitments  10,887 10,196  
50 Tier 1 (core) risk-based capital  22,505 17,818  
51 Tier 2 risk-based capital  1,243 1,069  
52 Total unused commitments  10,887 10,196  
53 Derivatives  0 0  
  Restructured Loans and leases    
  Past due and nonaccrual assets    
  Fiduciary and related services    
     Income and Expense (Year-to-date) (Year-to-date)  
54 Number of institutions reporting  1 1  
55 Total interest income  5,355 5,265  
56 Total interest expense  1,056 1,254  
57 Net interest income  4,299 4,011  
58 Provision for loan and lease losses  43 248  
59 Total noninterest income  471 400  
60 Fiduciary activities  0 0  
61 Service charges on deposit accounts  218 218  
62 Trading account gains & fees  0 0  
63 Additional noninterest income  253 182  
64 Total noninterest expense  2,358 1,829  
65 Salaries and employee benefits  1,072 884  
66 Premises and equipment expense  264 271  
67 Additional noninterest expense  1,022 674  
68 Pre-tax net operating income  2,369 2,334  
69 Securities gains (losses)  0 0  
70 Applicable income taxes  673 616  
71 Income before extraordinary items  1,696 1,718  
72 Extraordinary gains - net  0 0  
73 Net income attributable to bank  1,696 1,718  
74 Net income attributable to noncontrolling interests  0 0  
75 Net income attributable to bank and noncontrolling interests  1,696 1,718  
76 Net charge-offs  -19 3  
77 Cash dividends  150 152  
78 Sale, conversion, retirement of capital stock, net  0 0  
79 Net operating income  1,696 1,718  
  Memo:
  Gross fiduciary and related services income     
     Performance and Condition Ratios      
80 % of unprofitable institutions  N/A N/A  
81 % of institutions with earnings gains  N/A N/A  
                 Performance Ratios (%, annualized) (Year-to-date) (Year-to-date)  
82 Yield on earning assets  5.07% 5.40%  
83 Cost of funding earning assets  1.00% 1.29%  
84 Net interest margin  4.07% 4.11%  
85 Noninterest income to earning assets  0.45% 0.41%  
86 Noninterest expense to earning assets  2.23% 1.87%  
87 Net operating income to assets  1.48% 1.63%  
88 Return on assets (ROA)  1.48% 1.63%  
89 Pretax return on assets  2.07% 2.21%  
90 Return on equity (ROE)  11.72% 13.36%  
91 Retained earnings to average equity (YTD only)  10.69% 12.17%  
92 Net charge-offs to loans  -0.03% 0.00%  
93 Credit loss provision to net charge-offs  -226.32% 8266.67%  
94 Earnings coverage of net loan charge-offs (x)  N/A 860.65  
95 Efficiency ratio  49.43% 41.46%  
96 Assets per employee ($ millions)  5.52 6.64  
97 Cash dividends to net income (YTD only)  8.84% 8.85%  
  Condition Ratios (%)
98 Loss allowance to loans  1.27% 1.25%  
99 Loss allowance to noncurrent loans  88.25% 184.27%  
100 Noncurrent assets plus other real estate owned to assets  0.94% 0.60%  
101 Noncurrent loans to loans  1.44% 0.68%  
102 Net loans and leases to deposits  75.14% 80.10%  
103 Net loans and leases to core deposits  78.15% 85.93%  
104 Equity capital to assets  13.26% 12.29%  
105 Core capital (leverage) ratio  13.62% 12.26%  
106 Tier 1 risk-based capital ratio  22.65% 20.86%  
107 Total risk-based capital ratio  23.90% 22.11%  
  Memoranda:
108 Average assets  152,890 140,583  
109 Average earning assets  140,885 130,086  
110 Average equity  19,288 17,151  
111 Average loans  100,621 94,109  
 
Definition Demographic Information 23-Nov-11 30-Sep-11 30-Sep-10
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   4 3
8 Number of Foreign Offices   N/A N/A 
9 Interstate Offices   No  No
10 Summary Of Deposits   30-Jun-11 30-Jun-10
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 3-Nov-34 3-Nov-34 3-Nov-34
17 Date of Deposit Insurance 3-Nov-34 3-Nov-34 3-Nov-34
18 Last Structure Change Process Date 29-Sep-11  
19 Last Structure Change Effective Date 5-Aug-11  
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