July 9, 2010

Dear Shareholder:

I am delighted to inform you that, in spite of the additional expense incurred with the opening of our new Hazleton Branch, Landmark Community Bank reported record year to date net income after tax of $759 thousand through the six month period ended June 30, 2010. This compares to net income after tax of $525 thousand during the same period in 2009, an increase of more than 44%. Earnings per share improved to 46 cents per share compared to 32 cents during the first six months of 2009. At June 30, 2010 the net interest margin expanded to 3.87% compared to 3.64% at June 30, 2009. Return on average assets was .81% compared to .62% for the same period last year. Return on average equity improved to 8.93% compared to 6.74% during the same period in 2009.

Assets at June 30, 2010 increased more than 9% to $194.9 million compared to $178.3 million the prior year. Net loans at June 30, 2010 were up more than 8% to $139.4 million and investments were up 13.8% to $39.7 million compared to the same period in 2009. Deposits at June 30, 2010 were $149.5 million, an increase of more than 15%, compared to the same period of 2009 and there continues to be significant improvement in the composition of the deposit portfolio. Noninterest bearing (checking account) balances continue on a path of substantial growth and reached $23.2 million, up nearly 24% compared to June 30, 2009.

Stockholders’ equity grew 10.8% to $17.6 million at June 30, 2010 compared to $15.9 million for the same period in 2009. Book value increased nearly 11% to $10.66 per share. Landmark’s Tier 1 leverage ratio was 9.05%. This ratio is an indicator of bank strength. Banks are considered to be well capitalized at 6%. The allowance for loan and lease losses increased about 7% at June 30, 2010 to $1.57 million compared to the same date last year. Asset quality continues to be stable and the bank has not experienced any loan charge offs during calendar year 2010.

The new Hazleton branch, which opened on January 11, 2010 achieved profitability during the month of June, less than six months after opening. This is a significant accomplishment and validates the decision to expand in this market.

Landmark Bank Mortgage Services, a division of Landmark Community Bank which started in business last year, is exceeding our expectations for the six months ended June 30, 2010 and contributing to the growth of non interest income.

Landmark Community Bank has maintained a FIVE STAR, Superior rating from BauerFinancial, Inc which is one of the leading independent bank rating services.

Our staff, Board of Directors and Advisory Board members are committed to building an exceptional institution focused on our clients, shareholders, employees and communities.

We appreciate your continued support and confidence in Landmark Community Bank and we urge you to continue to refer your friends, neighbors and business associates to your bank.

Very Truly Yours,

Daniel R. Nulton

President and Chief Executive Officer