UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 0-12126
FRANKLIN FINANCIAL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
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PENNSYLVANIA |
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25-1440803 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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20 SOUTH MAIN STREET (P.O. BOX 6010), CHAMBERSBURG, PA 17201-0819 |
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(Address of principal executive offices) |
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717/264-6116 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
There were 2,680,218 outstanding shares of the Registrant’s common stock as of November 1, 2002.
INDEX
2
(Amounts in thousands, except per share data)
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September
30 |
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December
31 |
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(Unaudited) |
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ASSETS |
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Cash and due from banks |
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$ |
15,369 |
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$ |
14,431 |
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Interest bearing deposits in other banks and fed funds sold |
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17,745 |
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2,108 |
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Total cash and cash equivalents |
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33,114 |
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16,539 |
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Investment securities available for sale |
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166,459 |
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147,942 |
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Loans |
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314,513 |
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306,574 |
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Allowance for loan losses |
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(4,338 |
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(4,051 |
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Net Loans |
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310,175 |
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302,523 |
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Premises and equipment, net |
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9,899 |
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9,335 |
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Other assets |
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23,717 |
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22,508 |
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Total Assets |
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$ |
543,364 |
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$ |
498,847 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits: |
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Demand (non-interest bearing) |
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$ |
62,191 |
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$ |
47,259 |
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Savings and Interest checking |
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196,489 |
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186,865 |
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Time |
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121,305 |
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119,919 |
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Total Deposits |
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379,985 |
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354,043 |
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Securities sold under agreements to repurchase |
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49,997 |
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42,263 |
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Short term borrowings |
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— |
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2,100 |
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Long term debt |
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59,866 |
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50,362 |
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Other liabilities |
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6,532 |
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4,814 |
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Total Liabilities |
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496,380 |
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453,582 |
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Shareholders’ equity: |
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Common stock $1 par value per share, 15,000 shares authorized with 3,045 shares issued and 2,680 and 2,708 shares outstanding at September 30, 2002 and December 31, 2001, respectively. |
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3,045 |
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3,045 |
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Capital stock without par value, 5,000 shares authorized with no shares issued or outstanding |
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— |
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— |
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Additional paid in capital |
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19,761 |
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19,746 |
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Retained earnings |
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30,268 |
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28,769 |
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Accumulated other comprehensive income |
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1,166 |
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224 |
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Treasury stock, 365 shares and 337 shares at cost at September 30, 2002 and December 31, 2001, respectively |
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(7,256 |
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(6,519 |
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Total shareholders’ equity |
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46,984 |
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45,265 |
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Total Liabilities and Shareholders’ Equity |
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$ |
543,364 |
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$ |
498,847 |
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The accompanying notes are an integral part of these financial statements
3
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
(unaudited)
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For the
Three Months Ended |
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For the
Nine Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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INTEREST INCOME |
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Interest and fees on loans |
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$ |
5,288 |
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$ |
5,895 |
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$ |
15,987 |
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$ |
18,164 |
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Interest on deposits in other banks |
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49 |
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187 |
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119 |
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576 |
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Interest on fed funds sold |
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39 |
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23 |
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63 |
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23 |
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Interest and dividends on investments: |
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Taxable interest |
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1,063 |
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1,214 |
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3,119 |
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3,720 |
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Tax exempt interest |
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394 |
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431 |
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1,186 |
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1,387 |
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Dividends |
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61 |
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61 |
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169 |
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207 |
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Total interest income |
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6,894 |
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7,811 |
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20,643 |
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24,077 |
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INTEREST EXPENSE |
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Interest on deposits |
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1,929 |
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2,912 |
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6,018 |
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9,444 |
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Interest on securities sold under agreements to repurchase |
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197 |
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396 |
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546 |
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1,321 |
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Interest on short term borrowings |
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— |
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— |
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1 |
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— |
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Interest on long term debt |
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849 |
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679 |
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2,494 |
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1,748 |
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