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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”) recorded a before tax other than
temporary impairment (OTTI) charge related to security positions in FHLMC
(“Freddie Mac”) preferred equity and debt securities issued by Lehman
Brothers Holdings (Lehman). The before tax loss on the Freddie Mac
preferred equity positions totals $2,289,000 and the before tax loss on
the Lehman debt totals $2,580,000. The net of tax effect to earnings is a
loss of $3,214,000 or $1.03 per share. The OTTI became necessary as the
result of recent Treasury Department actions as well as the overall credit
crisis and deterioration within the financial markets. At the present
time, management cannot determine if or when the financial condition of
Freddie Mac will improve, nor can it be reasonably determined if the value
of the Lehman debt will improve. The Company and its subsidiary Peoples
National Bank 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:
October 9, 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:
October 9, 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:
October 9, 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:
October 9, 2008
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By:
Frederick J. Malloy
Vice
President/Controller
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