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PEOPLES
FINANCIAL SERVICES CORP.
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(Exact
name of registrant as specified in its charter)
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PENNSYLVANIA
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23-2391852
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(State
of incorporation)
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(IRS
Employer Identification No.)
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50
MAIN STREET, HALLSTEAD, PA
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18822
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(Address
of principal executive offices)
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(Zip
code)
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(570)
879-2175
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(Registrant’s
telephone number including area code)
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Item
2.06
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Material
Impairments
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Peoples
Financial Services Corp. (the “Company”) has determined that, as a result
of actions taken by the United States Treasury Department and the Federal
Housing Finance Agency with respect to the Federal Home Loan Mortgage
Corporation (“Freddie Mac”), it will record an other-than-temporary
impairment and take a non-cash charge to its earnings for the third
quarter of 2008 related to its investments in preferred equity securities
issued by Freddie Mac. The value of these securities has
decreased materially and it is unclear if, or when, their financial
condition will improve. The Company will record a non-cash,
other-than-temporary impairment charge of approximately $2,230,000, from
the current book value of $2,367,000, in the third quarter
relating to its investments in these preferred stocks. This
represents an after-tax amount of $1,472,000 or $0.47 per
share. Even if the Company determines that the full value of
the securities must be written down, the Company and its subsidiary,
Peoples National Bank, will both remain “well-capitalized” under
regulatory standards.
The
information in this Form 8-K shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, nor shall they be
deemed incorporated by reference in any filing under the Securities
Exchange Act of 1934, except as shall be expressly set forth by specific
reference in such filing.
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/s/
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Richard
S. Lochen, Jr.
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Dated:
September 11, 2008
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By:
Richard S. Lochen, Jr.
President
& CEO
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/s/
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Debra
E. Dissinger
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Dated:
September 11, 2008
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By:
Debra E. Dissinger
Executive
Vice President/COO
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/s/
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Joseph
M. Ferretti
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Dated:
September 11, 2008
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By:
Joseph M. Ferretti
Vice
President/CCO
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/s/
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Frederick
J. Malloy
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Dated:
September 11, 2008
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By:
Frederick J. Malloy
Vice
President/Controller
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