Contents
|
||
PART
I
|
FINANCIAL
INFORMATION
|
Page
No.
|
Item
1. Financial
Statements
|
||
|
Consolidated
Balance Sheets
|
3
|
as
of June 30, 2005 (Unaudited)
|
||
and
December 31, 2004 (Audited)
|
||
Consolidated
Statements of Income
|
4
|
|
(Unaudited)
for the Three-Months and Six-Months
|
||
Ended
June 30, 2005 and 2004
|
||
Consolidated
Statements of Stockholders’
|
5
|
|
Equity
(Unaudited) for the Six-Months
|
||
Ended
June 30, 2005 and 2004
|
||
Consolidated
Statements of Cash Flows
|
6
|
|
(Unaudited)
for the Six-Months
|
||
Ended
June 30, 2005 and 2004
|
||
Notes
to Consolidated Financial Statements
|
7
-
10
|
|
Item
2. Management’s
Discussion and Analysis of
|
10
- 22
|
|
Financial
Condition and Results of Operations
|
||
|
||
Item
3. Quantitative
and Qualitative Disclosures
|
23
|
|
About
Market Risk
|
||
Item
4. Controls and Procedures
|
23
|
|
|
||
PART
II
|
OTHER
INFORMATION
|
|
|
||
Item
1. Legal
Proceedings
|
24
|
|
Item
2. Unregistered
Sales of Equity Securities and Use of Proceeds
|
24
|
|
Item
3. Defaults
upon Senior Securities
|
24
|
|
Item
4. Submission
of Matters to a Vote of Security Holders
|
25
|
|
Item
5. Other
Information
|
25
|
|
Item
6. Exhibits
|
26
|
|
Signatures
|
27
|
|
Certifications
|
29
- 32
|
(In
thousands, except share data)
|
|||||||
ASSETS:
|
June
2005
|
Dec
2004
|
|||||
Cash
and due from banks
|
$
|
7,075
|
$
|
5,903
|
|||
Interest
bearing deposits in other banks
|
103
|
102
|
|||||
Cash
and cash equivalents
|
7,178
|
6,005
|
|||||
Securities
available for sale
|
114,263
|
113,598
|
|||||
Loans
|
249,189
|
244,814
|
|||||
Allowance
for
loan losses
|
(2,662
|
)
|
(2,739
|
)
|
|||
Loans,
net
|
246,527
|
242,075
|
|||||
Bank
premises and equipment, net
|
5,574
|
4,904
|
|||||
Accrued
interest receivable
|
1,969
|
1,987
|
|||||
Intangible
assets
|
1,761
|
1,892
|
|||||
Other
assets
|
9,037
|
8,914
|
|||||
Total
assets
|
$
|
386,309
|
$
|
379,375
|
|||
LIABILITIES:
|
|||||||
Deposits:
|
|||||||
Non-interest
bearing
|
$
|
45,883
|
$
|
42,999
|
|||
Interest
bearing
|
237,272
|
231,776
|
|||||
Total
deposits
|
283,155
|
274,775
|
|||||
Accrued
interest payable
|
618
|
550
|
|||||
Short-term
borrowings
|
14,138
|
14,614
|
|||||
Long-term
borrowings
|
48,063
|
46,034
|
|||||
Other
liabilities
|
687
|
1,048
|
|||||
Total
liabilities
|
346,661
|
337,021
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, par value $2 per share; authorized 12,500,000 shares; issued
3,341,251
shares; outstanding 3,149,124 shares and 3,155,801 shares at June
30, 2005
and
December 31, 2004, respectively
|
6,683
|
6,683
|
|||||
Surplus
|
2,871
|
2,821
|
|||||
Retained
earnings
|
33,781
|
35,665
|
|||||
Accumulated
other comprehensive income
|
71
|
618
|
|||||
Treasury
stock
at cost
|
(3,758
|
)
|
(3,433
|
)
|
|||
Total
stockholders' equity
|
39,648
|
42,354
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
386,309
|
$
|
379,375
|
Six-months
Ended
|
Three-months
Ended
|
|||||||||||||||
June
30, 2005
|
June
30, 2004
|
June
30, 2005
|
June
30, 2004
|
|||||||||||||
INTEREST
INCOME:
|
||||||||||||||||
Loans
receivable, including fees
|
$
|
7,796
|
$
|
7,454
|
$
|
3,955
|
$
|
3,717
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
1,585
|
1,590
|
804
|
769
|
||||||||||||
Tax
exempt
|
745
|
833
|
368
|
419
|
||||||||||||
Other
|
32
|
22
|
24
|
21
|
||||||||||||
Total
interest income
|
10,158
|
9,899
|
5,151
|
4,926
|
||||||||||||
INTEREST
EXPENSE:
|
||||||||||||||||
Deposits
|
2,564
|
2,429
|
1,342
|
1,210
|
||||||||||||
Short-term
borrowings
|
115
|
60
|
62
|
31
|
||||||||||||
Long-term
borrowings
|
1,193
|
1,031
|
593
|
517
|
||||||||||||
Total
interest expense
|
3,872
|
3,520
|
1,997
|
1,758
|
||||||||||||
Net
interest income
|
6,286
|
6,379
|
3,154
|
3,168
|
||||||||||||
PROVISION
FOR LOAN LOSSES
|
0
|
900
|
0
|
741
|
||||||||||||
Net
interest income after provision for
loan losses
|
6,286
|
5,479
|
3,154
|
2,427
|
||||||||||||
OTHER
INCOME:
|
||||||||||||||||
Customer
service fees
|
812
|
699
|
414
|
356
|
||||||||||||
Other
income
|
424
|
466
|
210
|
247
|
||||||||||||
Net
realized gains on sales of securities available
for sale
|
134
|
76
|
109
|
21
|
||||||||||||
Total
other income
|
1,370
|
1,241
|
733
|
624
|
||||||||||||
OTHER
EXPENSES:
|
||||||||||||||||
Salaries
and
employee benefits
|
2,261
|
1,980
|
1,197
|
989
|
||||||||||||
Occupancy
|
269
|
267
|
126
|
130
|
||||||||||||
Equipment
|
222
|
155
|
129
|
77
|
||||||||||||
FDIC
insurance and assessments
|
71
|
70
|
36
|
35
|
||||||||||||
Professional
fees and outside services
|
242
|
154
|
118
|
89
|
||||||||||||
Computer
services and supplies
|
357
|
298
|
188
|
160
|
||||||||||||
Taxes,
other than payroll and income
|
166
|
194
|
78
|
98
|
||||||||||||
Other
|
964
|
893
|
512
|
459
|
||||||||||||
Total
non-interest expense
|
4,552
|
4,011
|
2,384
|
2,037
|
||||||||||||
Income
before income taxes
|
3,104
|
2,709
|
1,503
|
1,014
|
||||||||||||
INCOME
TAXES
|
642
|
521
|
315
|
123
|
||||||||||||
Net
income
|
$
|
2,462
|
$
|
2,188
|
$
|
1,188
|
$
|
891
|
||||||||
Net
income per share, basic
|
$
|
0.78
|
$
|
0.69
|
$
|
0.38
|
$
|
0.28
|
||||||||
Net
income per share, diluted
|
$
|
0.78
|
$
|
0.69
|
$
|
0.38
|
$
|
0.28
|
|
Common
Stock
|
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income(Loss)
|
Treasury
Stock
|
Total
|
|||||||||||||
Balance, December 31, 2004
|
$
|
6,683
|
$
|
2,821
|
$
|
35,665
|
$
|
618
|
$
|
(3,433
|
)
|
$
|
42,354
|
||||||
Comprehensive income
|
|||||||||||||||||||
Net
income
|
0
|
0
|
2,462
|
0
|
0
|
2,462
|
|||||||||||||
Net
change in unrealized gains
(losses) on securities available for
sale, net of reclassification
adjustment and taxes
|
0
|
0
|
0
|
(547
|
)
|
0
|
(547
|
)
|
|||||||||||
Total comprehensive income
|
0
|
0
|
0
|
0
|
0
|
1,915
|
|||||||||||||
Cash dividends, ($1.38 per share)
|
0
|
0
|
(4,346
|
)
|
0
|
0
|
(4,346
|
)
|
|||||||||||
Treasury stock purchase
(10,200 shares)
|
0
|
0
|
0
|
0
|
(356
|
)
|
(356
|
)
|
|||||||||||
Treasury stock issued for stock
option plan (3,523 shares)
|
0
|
50
|
0
|
0
|
31
|
81
|
|||||||||||||
Balance,
June 30, 2005
|
$
|
6,683
|
$
|
2,871
|
$
|
33,781
|
$
|
71
|
$
|
(3,758
|
)
|
$
|
39,648
|
||||||
|
|||||||||||||||||||
Balance,
December 31, 2003
|
$
|
6,683
|
$
|
2,618
|
$
|
33,523
|
$
|
995
|
$
|
(2,743
|
)
|
$
|
41,076
|
||||||
Comprehensive income
|
|||||||||||||||||||
Net income
|
0
|
0
|
2,188
|
0
|
0
|
2,188
|
|||||||||||||
Net
change in unrealized gains
(losses) on securities available for
sale, net of reclassification
adjustment and taxes
|
0
|
0
|
0
|
(2,171
|
)
|
0
|
(2,171
|
)
|
|||||||||||
Total comprehensive income
|
0
|
0
|
0
|
0
|
0
|
17
|
|||||||||||||
Cash dividends, ($0.36 per share)
|
0
|
0
|
(1,140
|
)
|
0
|
0
|
(1,140
|
)
|
|||||||||||
Treasury
stock issued for stock
option plan (5,564 shares)
|
0
|
84
|
0
|
0
|
49
|
133
|
|||||||||||||
Balance,
June 30, 2004
|
$
|
6,683
|
$
|
2,702
|
$
|
34,571
|
$
|
(1,176
|
)
|
$
|
(2,694
|
)
|
$
|
40,086
|
(In
thousands)
|
Six-Months Ended
|
|||||||||
|
June
30, 2005
|
June
30, 2004
|
||||||||
Cash
Flows from Operating Activities
|
||||||||||
Net
income
|
$
|
2,462
|
$
|
2,188
|
||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Depreciation
and amortization
|
363
|
316
|
||||||||
Provision
for loan losses
|
0
|
900
|
||||||||
Amortization
of securities' premiums and accretion of discounts
|
293
|
267
|
||||||||
(Gains)
on sales of investment securities, net
|
(134
|
)
|
(76
|
)
|
||||||
Proceeds
from the sale of mortgage loans
|
566
|
2,399
|
||||||||
Net
gain on sale of loans
|
(13
|
)
|
(23
|
)
|
||||||
Loans
originated for sale
|
(553
|
)
|
(2,376
|
)
|
||||||
Net
earnings on investment in life insurance
|
(133
|
)
|
(104
|
)
|
||||||
Decrease
in accrued interest receivable
|
18
|
77
|
||||||||
(Increase)
decrease in other assets
|
299
|
(17
|
)
|
|||||||
Increase
in accrued interest payable
|
68
|
44
|
||||||||
Decrease
in other liabilities
|
(361
|
)
|
(99
|
)
|
||||||
Net
cash provided by operating activities
|
2,875
|
3,496
|
||||||||
Cash
Flows from Investing Activities
|
||||||||||
Proceeds
from sale of available for sale securities
|
11,569
|
13,418
|
||||||||
Proceeds
from maturities of available for sale securities
|
5,089
|
1,653
|
||||||||
Purchase
of available for sale securities
|
(20,980
|
)
|
(22,058
|
)
|
||||||
Principal
payments on mortgage-backed securities
|
2,669
|
4,297
|
||||||||
Net
increase in loans
|
(4,615
|
)
|
(3,255
|
)
|
||||||
Purchase
of premises and equipment
|
(902
|
)
|
(393
|
)
|
||||||
Proceeds
from sale of other real estate
|
156
|
165
|
||||||||
Purchase
of investment in life insurance
|
0
|
(2,000
|
)
|
|||||||
Net
cash (used in) investing activities
|
(7,014
|
)
|
(8,173
|
)
|
||||||
Cash
Flows from Financing Activities
|
||||||||||
Cash
dividends paid
|
(4,346
|
)
|
(1,140
|
)
|
||||||
Increase
in deposits
|
8,380
|
5,469
|
||||||||
Proceeds
from long-term borrowings
|
5,000
|
5,000
|
||||||||
Repayment
of long-term borrowings
|
(2,971
|
)
|
(455
|
)
|
||||||
Increase
(decrease) in short-term borrowings
|
(476
|
)
|
3,595
|
|||||||
Purchase
of treasury stock
|
(356
|
)
|
0
|
|||||||
Proceeds
from sale of treasury stock
|
81
|
133
|
||||||||
Net
cash provided by financing activities
|
5,312
|
12,602
|
||||||||
Net
increase in cash/cash equivalents
|
1,173
|
7,925
|
||||||||
Cash
and cash equivalents, beginning of year
|
6,005
|
6,056
|
||||||||
Cash
and cash equivalents, end of year
|
$
|
7,178
|
$
|
13,981
|
||||||
Supplemental
disclosures of cash paid
|
||||||||||
Interest
paid
|
$
|
3,804
|
$
|
3,476
|
||||||
Income
taxes paid
|
$
|
662
|
$
|
633
|
||||||
Non-cash
investing and financing activities
|
||||||||||
Transfers
from loans to real estate through foreclosure
|
$
|
163
|
$
|
289
|
Six-months Ended
|
Three-months Ended
|
||||||||||||||||||
June
30, 2005
|
June
30, 2004
|
June
30, 2005
|
June
30, 2004
|
||||||||||||||||
Net
income applicable to common stock
|
$
|
2,462,000
|
$
|
2,188,000
|
$
|
1,188,000
|
$
|
891,000
|
|||||||||||
Weighted
average common shares
outstanding
|
3,151,114
|
3,168,962
|
3,148,110
|
3,170,649
|
|||||||||||||||
Effect
of dilutive securities, stock options
|
18,378
|
24,397
|
17,434
|
25,737
|
|||||||||||||||
Weighted
average common shares
outstanding used to calculate diluted
earnings per share
|
3,169,492
|
3,193,359
|
3,165,544
|
3,196,386
|
|||||||||||||||
Basic earnings per share
|
$
|
.78
|
$
|
.69
|
$
|
.38
|
$
|
.28
|
|||||||||||
Diluted
earnings per share
|
$
|
.78
|
$
|
.69
|
$
|
.38
|
$
|
.28
|
(In
thousands)
|
Six-Months
Ended
|
Three-Months
Ended
|
|||||||||||
June
30, 2005
|
June
30, 2004
|
June
30, 2005
|
June
30, 2004
|
||||||||||
Unrealized
holding gains (losses) on available for sale securities
|
$
|
(695
|
)
|
$
|
(3,214
|
)
|
$
|
813
|
$
|
(4,542
|
)
|
||
Less:
Reclassification adjustment for gains (losses) realized in net income
|
134
|
76
|
109
|
21
|
|||||||||
Net
unrealized gains (losses)
|
(829
|
)
|
(3,290
|
)
|
704
|
(4,563
|
)
|
||||||
Tax
effect
|
282
|
1,119
|
(238
|
)
|
1,552
|
||||||||
Other
comprehensive income (loss)
|
$
|
(547
|
)
|
$
|
(2,171
|
)
|
$
|
466
|
$
|
(3,011
|
)
|
||
|
Six-Months Ended
|
Three-Months Ended
|
|||||||||||||||||
June
30, 2005
|
June
30, 2004
|
June
30, 2005
|
June
30, 2004
|
||||||||||||||||
Net
income as reported
|
$
|
2,462
|
$
|
2,188
|
$
|
1,188
|
$
|
891
|
|||||||||||
Total
stock-based compensation
cost, net of tax, which would have
been included in the determination
of net income if the fair value based
method had been applied to all
awards.
|
(3
|
)
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
|||||||||||
Pro
forma net income
|
$
|
2,459
|
$
|
2,186
|
$
|
1,187
|
$
|
890
|
|||||||||||
Basic
earnings per share:
|
|||||||||||||||||||
As
reported
|
$
|
.78
|
$
|
.69
|
$
|
.38
|
$
|
.28
|
|||||||||||
Pro
forma
|
$
|
.78
|
$
|
.69
|
$
|
.38
|
$
|
.28
|
|||||||||||
Diluted
earnings per share:
|
|||||||||||||||||||
As
reported
|
$
|
.78
|
$
|
.69
|
$
|
.38
|
$
|
.28
|
|||||||||||
Pro
forma
|
$
|
.78
|
$
|
.68
|
$
|
.37
|
$
|
.28
|
(In
thousands)
|
Maturity or Repricing In:
|
||||||||||||||||||
|
3
Months
|
3-6
Months
|
6-12
Months
|
1-5
Years
|
Over
5 Years
|
||||||||||||||
RATE
SENSITIVE ASSETS
|
|
|
|
|
|||||||||||||||
Loans
|
$
|
39,059
|
$
|
13,970
|
$
|
31,170
|
$
|
129,783
|
$
|
32,545
|
|||||||||
Securities
|
10,223
|
3,213
|
11,972
|
52,530
|
36,325
|
||||||||||||||
Federal
funds sold
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||
Total
rate sensitive assets
|
49,282
|
17,183
|
43,142
|
182,313
|
68,870
|
||||||||||||||
Cumulative
rate sensitive assets
|
$
|
49,282
|
$
|
66,465
|
$
|
109,607
|
$
|
291,920
|
$
|
360,790
|
|||||||||
RATE
SENSITIVE LIABILITIES
|
|
|
|
|
|
||||||||||||||
Interest
bearing checking
|
$
|
639
|
$
|
639
|
$
|
1,278
|
$
|
10,220
|
$
|
8,517
|
|||||||||
Money
market deposits
|
1,105
|
1,105
|
2,211
|
17,687
|
14,739
|
||||||||||||||
Regular
savings
|
2,839
|
2,163
|
4,326
|
34,605
|
28,835
|
||||||||||||||
CDs
and IRAs
|
14,576
|
14,287
|
19,630
|
56,126
|
1,745
|
||||||||||||||
Short-term
borrowings
|
14,138
|
0
|
0
|
0
|
0
|
||||||||||||||
Long-term
borrowings
|
10,000
|
5,000
|
0
|
15,563
|
17,500
|
||||||||||||||
Total
rate sensitive liabilities
|
43,297
|
23,194
|
27,445
|
134,201
|
71,336
|
||||||||||||||
Cumulative
rate sensitive liabilities
|
$
|
43,297
|
$
|
66,491
|
$
|
93,936
|
$
|
228,137
|
$
|
299,473
|
|||||||||
|
|
|
|
|
|
||||||||||||||
Period
gap
|
$
|
5,985
|
$
|
(6,011
|
)
|
$
|
15,697
|
$
|
48,112
|
$
|
(2,466
|
)
|
|||||||
Cumulative
gap
|
$
|
5,985
|
$
|
(26
|
)
|
$
|
15,671
|
$
|
63,783
|
$
|
61,317
|
||||||||
Cumulative
RSA to RSL
|
113.82
|
%
|
99.96
|
%
|
116.68
|
%
|
127.96
|
%
|
120.47
|
%
|
|||||||||
Cumulative
gap to total assets
|
1.55
|
%
|
(0.01
|
)%
|
4.06
|
%
|
16.51
|
%
|
15.87
|
%
|
June
2005
|
June
2004
|
||||||||||||||||||
(In
thousands)
|
Average
|
Yield/
|
Average
|
Yield/
|
|
||||||||||||||
ASSETS
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|||||||
Loans
|
|
|
|
|
|
||||||||||||||
Real
estate
|
$
|
108,548
|
$
|
3,482
|
6.47
|
%
|
$
|
107,831
|
$
|
3,552
|
6.62
|
%
|
|||||||
Installment
|
17,615
|
599
|
6.86
|
%
|
17,611
|
586
|
6.69
|
%
|
|||||||||||
Commercial
|
101,870
|
3,315
|
6.56
|
%
|
100,100
|
3,058
|
6.14
|
%
|
|||||||||||
Tax
exempt
|
19,164
|
375
|
3.95
|
%
|
12,311
|
236
|
3.86
|
%
|
|||||||||||
Other
loans
|
592
|
25
|
8.52
|
%
|
670
|
22
|
6.60
|
%
|
|||||||||||
Total
loans
|
247,789
|
7,796
|
6.34
|
%
|
238,523
|
7,454
|
6.28
|
%
|
|||||||||||
Investment
securities (AFS)
|
|||||||||||||||||||
Taxable
|
73,784
|
1,585
|
4.33
|
%
|
74,192
|
1,590
|
4.31
|
%
|
|||||||||||
Non-taxable
|
37,974
|
745
|
3.96
|
%
|
40,274
|
833
|
4.16
|
%
|
|||||||||||
Total
securities
|
111,758
|
2,330
|
4.20
|
%
|
114,466
|
2,423
|
4.26
|
%
|
|||||||||||
Fed
funds sold
|
2,108
|
32
|
3.06
|
%
|
4,293
|
22
|
1.03
|
%
|
|||||||||||
Total
earning assets
|
361,655
|
10,158
|
5.66
|
%
|
357,282
|
9,899
|
5.57
|
%
|
|||||||||||
Less:
allowance for loan losses
|
(2,700
|
)
|
(2,113
|
)
|
|||||||||||||||
Cash
and due from banks
|
6,238
|
6,730
|
|||||||||||||||||
Premises
and equipment, net
|
5,342
|
4,536
|
|||||||||||||||||
Other
assets
|
12,123
|
9,847
|
|||||||||||||||||
Total
assets
|
$
|
382,658
|
$
|
376,282
|
|||||||||||||||
LIABILITIES
AND STOCKHOLDERS’EQUITY
|
|||||||||||||||||||
Deposits
|
|||||||||||||||||||
Interest
bearing demand
|
$
|
23,788
|
$
|
71
|
0.60
|
%
|
$
|
25,565
|
$
|
92
|
0.72
|
%
|
|||||||
Regular
savings
|
70,827
|
502
|
1.43
|
%
|
62,218
|
296
|
0.96
|
%
|
|||||||||||
Money
market savings
|
35,810
|
354
|
1.99
|
%
|
40,691
|
281
|
1.39
|
%
|
|||||||||||
Time
|
107,008
|
1,637
|
3.08
|
%
|
114,838
|
1,760
|
3.08
|
%
|
|||||||||||
Total
interest bearing deposits
|
237,433
|
2,564
|
2.18
|
%
|
243,312
|
2,429
|
2.01
|
%
|
|||||||||||
Other
borrowings
|
60,440
|
1,308
|
4.36
|
%
|
51,559
|
1,091
|
4.26
|
%
|
|||||||||||
Total
interest bearing
|
297,873
|
3,872
|
2.62
|
%
|
294,871
|
3,520
|
2.40
|
%
|
|||||||||||
Liabilities
|
|||||||||||||||||||
Net
interest income
|
6,286
|
3.04
|
%
|
6,379
|
3.17
|
%
|
|||||||||||||
Non-interest
bearing
|
|||||||||||||||||||
Demand
deposits
|
42,828
|
38,676
|
|||||||||||||||||
Accrued
expenses and
|
|||||||||||||||||||
Other
liabilities
|
1,576
|
1,400
|
|||||||||||||||||
Stockholders’
equity
|
40,381
|
41,335
|
|||||||||||||||||
Total
liabilities and
|
|||||||||||||||||||
Stockholders’
equity
|
$
|
382,658
|
$
|
376,282
|
|||||||||||||||
Interest
income/earning assets
|
5.66
|
%
|
5.57
|
%
|
|||||||||||||||
Interest
expense/earning assets
|
2.16
|
%
|
1.98
|
%
|
|||||||||||||||
Net
interest margin
|
3.51
|
%
|
3.59
|
%
|
June
2005
|
June
2004
|
||||||||||||||||||
(In
thousands)
|
Average
|
|
Yield/
|
Average
|
Yield/
|
||||||||||||||
ASSETS
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||
Loans
|
|||||||||||||||||||
Real
estate
|
$
|
108,305
|
$
|
1,740
|
6.44
|
%
|
$
|
107,621
|
$
|
1,774
|
6.63
|
%
|
|||||||
Installment
|
17,568
|
318
|
7.26
|
%
|
17,563
|
292
|
6.69
|
%
|
|||||||||||
Commercial
|
103,061
|
1,696
|
6.60
|
%
|
100,709
|
1,521
|
6.07
|
%
|
|||||||||||
Tax
exempt
|
19,356
|
189
|
3.92
|
%
|
12,490
|
119
|
3.83
|
%
|
|||||||||||
Other
loans
|
573
|
12
|
8.40
|
%
|
632
|
11
|
7.00
|
%
|
|||||||||||
Total
loans
|
248,863
|
3,955
|
6.37
|
%
|
239,015
|
3,717
|
6.25
|
%
|
|||||||||||
Investment
securities (AFS)
|
|||||||||||||||||||
Taxable
|
74,515
|
804
|
4.33
|
%
|
73,909
|
769
|
4.18
|
%
|
|||||||||||
Non-taxable
|
37,734
|
368
|
3.91
|
%
|
41,077
|
419
|
4.10
|
%
|
|||||||||||
Total
securities
|
112,249
|
1,172
|
4.19
|
%
|
114,986
|
1,188
|
4.16
|
%
|
|||||||||||
Fed
funds sold
|
3,051
|
24
|
3.16
|
%
|
8,211
|
21
|
1.03
|
%
|
|||||||||||
Total
earning assets
|
364,163
|
5,151
|
5.67
|
%
|
362,212
|
4,926
|
5.47
|
%
|
|||||||||||
Less:
allowance for loan losses
|
(2,670
|
)
|
(2,166
|
)
|
|||||||||||||||
Cash
and due from banks
|
6,638
|
7,196
|
|||||||||||||||||
Premises
and equipment, net
|
5,509
|
4,614
|
|||||||||||||||||
Other
assets
|
12,322
|
9,967
|
|||||||||||||||||
Total
assets
|
$
|
385,962
|
$
|
381,823
|
|||||||||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||
Deposits
|
|||||||||||||||||||
Interest
bearing demand
|
$
|
24,501
|
$
|
36
|
0.59
|
%
|
$
|
27,260
|
$
|
50
|
0.74
|
%
|
|||||||
Regular
savings
|
72,978
|
279
|
1.53
|
%
|
63,565
|
148
|
0.94
|
%
|
|||||||||||
Money
market savings
|
35,798
|
192
|
2.15
|
%
|
41,236
|
143
|
1.39
|
%
|
|||||||||||
Time
|
107,358
|
835
|
3.12
|
%
|
114,356
|
869
|
3.06
|
%
|
|||||||||||
Total
interest bearing deposits
|
240,635
|
1,342
|
2.24
|
%
|
246,417
|
1,210
|
1.97
|
%
|
|||||||||||
Other
borrowings
|
60,437
|
655
|
4.35
|
%
|
52,081
|
548
|
4.23
|
%
|
|||||||||||
Total
interest bearing
|
301,072
|
1,997
|
2.66
|
%
|
298,498
|
1,758
|
2.37
|
%
|
|||||||||||
Liabilities
|
|||||||||||||||||||
Net
interest income
|
3,154
|
3.01
|
%
|
3,168
|
3.10
|
%
|
|||||||||||||
Non-interest
bearing
|
|||||||||||||||||||
Demand
deposits
|
44,342
|
40,105
|
|||||||||||||||||
Accrued
expenses and
|
|||||||||||||||||||
Other
liabilities
|
1,738
|
1,258
|
|||||||||||||||||
Stockholders’
equity
|
38,810
|
41,962
|
|||||||||||||||||
Total
liabilities and
|
|||||||||||||||||||
Stockholders’
equity
|
$
|
385,962
|
$
|
381,823
|
|||||||||||||||
Interest
income/earning assets
|
5.67
|
%
|
5.47
|
%
|
|||||||||||||||
Interest
expense/earning assets
|
2.20
|
%
|
1.95
|
%
|
|||||||||||||||
Net
interest margin
|
3.47
|
%
|
3.52
|
%
|
PEOPLES
FINANCIAL SERVICES CORP.
|
ISSUER
PURCHASES OF COMMON STOCK
|
MONTH
|
Total
number
of
shares
purchased
|
Average
price paid per share
|
Total
number
of
shares purchased
as
part of publicly
announced
plans or programs
|
Maximum
number of
shares
that may yet be purchased under the plans or programs (1)
|
|||||||||
April
1, 2005 - April 30, 2005
|
4,000
|
$
|
34.20
|
0
|
112,674
|
||||||||
May
1,
2005 - May 31, 2005
|
0
|
$
|
0
|
0
|
112,674
|
||||||||
June
1,
2005 - June 30, 2005
|
0
|
$
|
0
|
0
|
112,674
|
||||||||
TOTAL
|
4,000
|
$
|
34.20
|
0
|
|||||||||
(1)
On December 27,1995, the Board of Directors authorized the repurchase
of
187,500 shares of the Corporation's common stock from
shareholders.
|
|||||||||||||
On
July 2, 2001, the Board of Directors authorized the repurchase
of an
additional 5%, or 158,931 shares of the Corporation's common stock
outstanding.
|
|||||||||||||
Neither
repurchase program stipulated an expiration
date.
|
NAME
|
FOR
|
WITHHOLD
AUTHORITY
|
George
H. Stover, Jr.
|
2,259,533
|
23,912
|
Richard
S. Lochen, Jr.
|
2,272,809
|
10,635
|
(a)
|
Exhibits
required by Item 601 of Regulation S-K:
|
||
(3.1)
|
Articles
of Incorporation of Peoples Financial Services Corp.,*
|
||
(3.2)
|
Bylaws
of Peoples Financial Services Corp.,**
|
||
(10.1)
|
Agreement
dated January 14, 1997, between John W. Ord and Peoples Financial
Services
Corp.,*
|
||
(10.2)
|
Excess
Benefit Plan dated January 14, 1992, for John W. Ord,*
|
||
(10.4)
|
Termination
Agreement dated January 1, 1997, between Debra E. Dissinger and Peoples
Financial Services Corp.,*
|
||
(10.5)
|
Supplemental
Executive Retirement Plan Agreement, dated December 3, 2004, for
John W.
Ord,***
|
||
(10.6)
|
Supplemental
Executive Retirement Plan Agreement, dated December 3, 2004, for
Debra E.
Dissinger,***
|
||
(10.7)
|
Supplemental
Director Retirement Plan Agreement, dated December 3, 2004, for all
Non-Employee Directors of the Company,***
|
||
(11)
|
The
statement regarding computation of per share earnings required by
this
exhibit is contained in Note 2 to the consolidated financial statements
captioned “Earnings Per Share” filed as part of Item 1 of this
report,
|
||
(21)
|
Subsidiaries
of Peoples Financial Services Corp.,*
|
||
(31.1)
|
Certification
of Chief Executive Officer pursuant to Rule
13a-14(a)/15d-14(a),
|
||
(31.2)
|
Certification
of Principal Financial Officer pursuant to Rule
13a-14(a)/15d-14(a),
|
||
(32.1)
|
Certification
of Chief Executive Officer pursuant to Section 1350 of Sarbanes-Oxley
Act
of 2002,
|
||
(32.2)
|
Certification
of Principal Financial Officer pursuant to Section 1350 of Sarbanes-Oxley
Act of 2002.
|
||
*
|
Incorporated
by reference to the Corporation’s Registration Statement on Form 10 as
filed with the U.S. Securities and Exchange Commission on March 4,
1998.
|
||
**
|
Incorporated
by reference to the Corporation’s Exhibit 3.2 on Form 10Q filed with the
U.S. Securities and Exchange Commission on November 8,
2004.
|
||
***
|
Incorporated
by reference to the Corporation’s Exhibits 10.5, 10.6 and 10.7 on Form 10K
filed with the U.S. Securities and Exchange Commission on March 15,
2005.
|
Item
number
|
Description
|
Page
|
31.1
|
Certification
of Chief Executive Officer
|
29
|
31.2
|
Certification
of Principal Financial Officer
|
30
|
32.1
|
Sarbanes-Oxley
Act of 2002 Section 1350
|
31
|
Certification
of Chief Executive Officer
|
||
32.2
|
Sarbanes-Oxley
Act of 2002 Section 1350
|
32
|
Certification
of Principal Financial Officer
|
1. |
I
have reviewed this quarterly report on Form l0Q of Peoples Financial
Services Corp.;
|
2. |
Based
on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to
make the statements made, in light of the circumstances under which
such
statements were made, not misleading with respect to the period covered
by
this quarterly report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this quarterly report, fairly present in all material
respects
the financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this quarterly
report;
|
4. |
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:
|
a) |
designed
such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is
being
prepared;
|
b) |
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d) |
disclosed
in the annual report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting.
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
all
significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
b) |
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
1. |
I
have reviewed this quarterly report on Form l0Q of Peoples Financial
Services Corp.;
|
2. |
Based
on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to
make the statements made, in light of the circumstances under which
such
statements were made, not misleading with respect to the period covered
by
this quarterly report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this quarterly report, fairly present in all material
respects
the financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this quarterly
report;
|
4. |
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:
|
a) |
designed
such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is
being
prepared;
|
b) |
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d) |
disclosed
in the annual report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting.
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
all
significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
b) |
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|