COMMITTMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2012

COMMITTMENTS AND CONTINGENCIES

NOTE 6 — COMMITTMENTS AND CONTINGENCIES

In August 2011, the Bank entered into an agreement with a seller to acquire property consisting of three parcels of vacant land in the amount of $504,000 in Kingston, Pennsylvania. The property was acquired on February 15, 2012. As of March 31, 2012, the Bank has committed to build a new facility at an approximate cost of $1,429,000, of which $163,000 has been spent.

In 2011, the Bank began work to expand its main headquarters in Berwick, Pennsylvania. As of March 31, 2012, the Bank has committed to spend $5.4 million on this facility, of which $2.1 million has been spent.

In February 2012, the Bank entered into an agreement with a seller to acquire property consisting of a parcel of land and a building in the amount of $400,000 in Shickshinny, Pennsylvania. This property is expected to be acquired in the second quarter of 2012.

In the normal course of business, there are various pending legal actions and proceedings that are not reflected in the consolidated financial statements. Management does not believe the outcome of these actions and proceedings will have a material effect on the consolidated financial position of the Corporation.