UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2004
o 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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes o No ý
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 2,693,066 outstanding shares of the Registrant’s common stock as of April 30, 2004.
INDEX
2
(Amounts in thousands, except per share data)
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March 31 |
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December
31 |
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Assets |
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Cash and due from banks |
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$ |
12,865 |
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$ |
15,360 |
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Interest bearing deposits in other banks and fed funds sold |
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325 |
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256 |
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Total cash and cash equivalents |
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13,190 |
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15,616 |
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Investment securities available for sale |
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151,399 |
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152,381 |
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Restricted stock |
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5,012 |
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4,753 |
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Loans held for sale |
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17,235 |
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12,113 |
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Loans |
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334,477 |
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333,946 |
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Allowance for loan losses |
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(4,312 |
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(3,750 |
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Net Loans |
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330,165 |
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330,196 |
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Premises and equipment, net |
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9,752 |
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9,564 |
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Bank owned life insurance |
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10,444 |
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10,319 |
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Other assets |
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13,730 |
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13,760 |
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Total Assets |
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$ |
550,927 |
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$ |
548,702 |
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Liabilities |
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Deposits |
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Demand (non-interest bearing) |
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$ |
60,728 |
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$ |
59,547 |
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Savings and Interest checking |
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205,220 |
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201,715 |
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Time |
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111,680 |
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111,169 |
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Total Deposits |
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377,628 |
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372,431 |
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Securities sold under agreements to repurchase |
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39,267 |
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38,311 |
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Short term borrowings |
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17,400 |
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25,200 |
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Long term debt |
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56,170 |
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56,467 |
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Other liabilities |
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6,812 |
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5,435 |
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Total Liabilities |
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497,277 |
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497,844 |
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Shareholders’ equity |
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Common stock $1 par value per share, 15,000 shares authorized with 3,807 and 3,045 shares issued and 3,366 and 2,692 shares outstanding at March 31, 2004 and December 31, 2003, respectively. |
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3,807 |
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3,045 |
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Capital stock without par value, 5,000 shares authorized with no shares issued or outstanding |
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— |
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— |
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Additional paid in capital |
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19,828 |
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19,819 |
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Retained earnings |
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34,058 |
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34,251 |
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Accumulated other comprehensive income |
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2,960 |
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1,767 |
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Treasury stock, 441 shares and 353 shares at cost at March 31, 2004 and December 31, 2003, respectively |
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(7,003 |
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(7,024 |
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Total shareholders’ equity |
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53,650 |
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51,858 |
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Total Liabilities and Shareholders’ Equity |
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$ |
550,927 |
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$ |
549,702 |
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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)
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For the
Three Months Ended |
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2004 |
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2003 |
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Interest Income |
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Loans |
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$ |
4,724 |
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$ |
4,983 |
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Interest and dividends on investments: |
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Taxable interest |
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820 |
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897 |
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Tax exempt interest |
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393 |
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393 |
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Dividend income |
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54 |
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58 |
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Deposits and obligations of other banks |
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1 |
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13 |
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Total interest income |
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5,992 |
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6,344 |
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Interest Expense |
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Deposits |
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1,158 |
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1,496 |
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Securities sold under agreements to repurchase |
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67 |
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85 |
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Short term borrowings |
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69 |
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7 |
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Long term debt |
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779 |
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849 |
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Total interest expense |
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2,073 |
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2,437 |
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Net interest income |
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3,919 |
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3,907 |
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Provision for loan losses |
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240 |
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269 |
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Net interest income after provision for loan losses |
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3,679 |
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3,638 |
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Noninterest Income |
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