Exhibit
99










FOR
      IMMEDIATE RELEASE
            
            Contact:  Scott
      E. LiedPhone:     717-733-4181








Ephrata
National Bank Reports Second Quarter 2008 Results





(July 16,
2008)  -- Ephrata, PA -- Ephrata National Bank’s net income for the
second quarter of 2008 was $1,428,000, an 8.9% increase from the $1,311,000
earned during the second quarter of 2007.  Net income for the six
months ended June 30, 2008, was $2,823,000, a 41.6% increase from the $1,993,000
earned during the same period in 2007.  Earnings per share for the
second quarter of 2008 were $0.50 compared to $0.46 for the same period in
2007.  Year-to-date earnings per share were $0.99 in 2008 compared to
$0.70 in 2007.





Despite
the marked improvement over the prior year’s earnings, which was mostly related
to lower provision for loan losses, the Bank’s income continues to be under
pressure from lower net interest margin and increased operational
expenses.





For the
first six-months of 2008, the provision for loan losses was $349,000, compared
to $1,236,000 for the first six-months of 2007.  During the first
quarter of 2007, the Bank charged off several large commercial loans that
management determined were uncollectable, requiring a significant
provision.  Management continues to take a prudent stance in
determining the allowance for loan losses and has continued to increase the
allowance as a percentage of total loans from a low of .86% in 2007 to 1.04% as
of June 30, 2008.  Despite the current state of the economy,
specifically the weaker housing market and ongoing credit concerns, the Bank has
not experienced extensive increases in loan delinquencies or
foreclosures.





The
Bank’s core earnings, net interest income (“NII”) for the six months ended June
30, 2008, were $456,000 or 4.8% higher than the same period in
2007.  Significant growth in interest earning assets more than
compensated for a decline in net interest margin, which was largely caused by
the rate decreases in the first six months of 2008. The Bank’s NII is heavily
dependent on changes in current market rates, which are driven in part by the
Federal Funds rate.  Decreases in short term interest rates have
reduced the yield on the Bank’s loans and securities at a slightly faster pace
than the Bank’s cost of funds.







Non-interest
income, excluding the gain or loss on the sale of securities and mortgages,
increased $104,000, or 9.2% and $301,000 or 13.5%, for the three and six months
ending June 30, 2008, respectively, compared to the same periods of 2007. For
the three and six-month periods respectively, bank owned life insurance (BOLI)
income added $64,000 and $128,000 to non-interest income compared to 2007. The
Bank’s BOLI income increased for both periods due to additional BOLI investments
made the second and third quarter of 2007. Other areas contributing to the
increases for both the three and six-month periods were traditional trust
income, deposit service charges, and check card exchange
commission.  All of these categories


increased
as part of normal growth of the Bank’s customer base and the types of
transactions they initiate.


(more)




















Ephrata
National Bank








During
the second quarter of 2008, the Bank recognized an $86,000 gain on the sale of
securities, compared to a $2,000 loss recognized in the same three month period
of 2007.  In the first six months of 2008, the Bank recognized
$112,000 of gains on the sale of securities versus $2,000 of losses in the same
period of 2007.





Total
operating expenses increased $284,000 or 6.6% and $554,000 or 6.6%, for the
respective three and six month periods ended June 30, 2008, over the same
periods in 2007.  The increase primarily resulted from higher salary
and benefit costs, which increased by $228,000 or 9.6% over the second quarter
of 2007, and $482,000 or 10.1% over the six months ended June 30, 2007. These
increases were due to organizational growth in personnel above normal merit
increases, and higher insurance costs.  The Bank’s premises and
equipment expenses for the three and six month periods respectively increased
$40,000 or 8.0% and $47,000 or 4.6% over the same periods in 2007. The
categories that contributed to these increases were real estate taxes and
utility expenses. The Bank’s other operating expenses did not reflect a material
change from prior years levels.





Ephrata
National’s annualized return on average assets (ROA) and return on average
stockholders’ equity (ROE) for the second quarter of 2008 were 0.86% and 8.43%
respectively, compared with 0.85% and 8.04% for the second quarter of
2007.  For the first six months of 2008, the annualized ROA was 0.86%
compared to 0.66% for 2007, while ROE was 8.17% compared to 6.11% for the same
period of 2007.





As of
June 30, 2008, Ephrata National had total assets of $678.6 million, up 9.8%;
total deposits of $509.1 million, up 8.0%; and total loans of $386.2 million, up
2.8%, from the balances as of June 30, 2007.





Ephrata
National Bank operates from eight locations in northern Lancaster County,
Pennsylvania, with the headquarters located at 31 E. Main Street, Ephrata,
PA.  Ephrata National has been serving the community since
1881.  For more information about Ephrata National Bank, visit the
Bank’s web site at www.epnb.com.







This news
release may contain forward-looking statements concerning the future operations
of Ephrata National Bank.  Forward-looking statements are based on
management’s current expectations, assumptions, estimates, and projections about
the Bank, the financial services industry and the economy.  The
Private Securities Reform Act of 1995 provides safe harbor in the event the
projected future operations are not met.  There are a number of future
factors such as changes in fiscal or monetary policy or changes in the economic
climate that will influence the Bank’s future operations.  These
factors are difficult to predict with regard to how likely and to what degree or
significance that they occur.  Actual results may differ materially
from what have been forecasted in the forward-looking statements.  We
are not obligated to publicly update any forward-looking statements to reflect
the effects of subsequent events.








(End)