UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
X ANNUAL REPORT PURUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the fiscal year ended December 31, 2000
_TRANSITION REPORT PURSUANT TO 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from ________ to_______.
Commission file number 0-12126
Farmers and Merchants Trust Company
PROFIT-SHARING PLAN
-------------------
(Full title of the plan)
Franklin Financial Services Corporation
20 South Main Street
P.O. Box 6010
CHAMBERSBURG, PA 17201-0819
---------------------------
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office.)
Registrant's telephone number, including area code (717) 264-6116
Notices and communications from the Securities and Exchange
Commission relating to this report should be forwarded to:
Franklin Financial Services Corporation
20 South Main Street
P.O. Box 6010
CHAMBERSBURG, PA 17201-0819
---------------------------
Attention: Elaine G. Meyers
Item 1. FINANCIAL STATEMENTS AND EXHIBITS
a. Financial Statements
1. Statements of Net Assets Available for Plan Benefits as
of December 31, 2000 and 1999.
2. Statement of Changes in Net Assets Available for Plan
Benefits for the year ended December 31, 2000.
b. Exhibits
1. Consent of Beard Miller Company LLP
FARMERS AND MERCHANTS TRUST COMPANY
PROFIT-SHARING PLAN
FINANCIAL REPORT
DECEMBER 31, 2000
C O N T E N T S
Page
INDEPENDENT AUDITOR'S REPORT
ON THE FINANCIAL STATEMENTS AND
SCHEDULE 1 and 2
FINANCIAL STATEMENTS
Statements of net assets available for benefits 3 and 4
Statements of changes in net assets available for benefits 5 and 6
Notes to financial statements 7-12
SCHEDULE
Schedule of assets held for investment purposes 13-19
INDEPENDENT AUDITOR'S REPORT
To the Plan Administrator
Farmers and Merchants Trust Company
Profit-Sharing Plan
Chambersburg, Pennsylvania
We have audited the accompanying statements of net assets available for
benefits of the Farmers and Merchants Trust Company Profit-Sharing Plan (the
"Plan") as of December 31, 2000 and 1999, and related statement of changes in
net assets available for benefits for the years then ended. These financial
statements and schedule referred to below are the responsibility of the Plan's
administrator. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by the Plan's administrator, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for benefits as of
December 31, 2000 and 1999, and the changes in net assets available for benefits
for the years then ended, in conformity with accounting principles generally
accepted in the United States of America.
-3-
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedule of assets
held for investment purposes is presented for purposes of additional analysis
and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedule has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ BEARD MILLER COMPANY LLP
Harrisburg, Pennsylvania
May 22, 2001
-4-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
--------------------------------------------------------------------------------
December 31, 2000 and 1999
--------------------------------------------------------------------------------
2000
------------------------------------------
PARTICIPANT NON- TOTAL
DIRECTED PARTICIPANT
DIRECTED
------------------------------------------
ASSETS
Investments, at fair value:
Franklin Financial Services Corporation
(FFSC) common stock $ - $ 301,405 $ 301,405
Corporate debt and equity securities 2,305,297 85,073 2,390,370
Mutual funds 2,785,072 - 2,785,072
Dreyfus Treasury Prime Cash Management
Fund 443,737 11,815 455,552
SEI - Institutional Cash 14,401 - 14,401
Government securities 740,390 93,763 834,153
Certificates of deposit 24,000 - 24,000
------------------------------------------
Total investments 6,312,897 492,056 6,804,953
------------------------------------------
Participant loan receivable 3,293 12 3,305
Employer's contribution receivable 6,584 607 7,191
Employees' contribution receivable 12,363 1,025 13,388
Income receivable 40,741 3,513 44,254
------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 6,375,878 $ 497,213 $ 6,873,091
==========================================
See Notes to Financial Statements.
-5-
-------------------------------------------
-------------------------------------------
1999
-------------------------------------------
Participant Non- Total
Directed Participant
Directed
-------------------------------------------
$ - $ 385,102 $ 385,102
2,156,420 90,197 2,246,617
2,951,047 - 2,951,047
169,597 9,201 178,798
5,508 - 5,508
637,222 173,804 811,026
24,000 - 24,000
-------------------------------------------
5,943,794 658,304 6,602,098
-------------------------------------------
- - -
28,680 5,155 33,835
11,592 2,040 13,632
18,339 7,966 26,305
-------------------------------------------
$ 6,002,405 $ 673,465 $ 6,675,870
===========================================
-6-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
--------------------------------------------------------------------------------
Years Ended December 31, 2000 and 1999
--------------------------------------------------------------------------------
2000
------------------------------------------
PARTICIPANT NON- TOTAL
DIRECTED PARTICIPANT
DIRECTED
------------------------------------------
Additions to net assets:
Net realized and unrealized appreciation
(depreciation) in value of
investments $ (229,614) $ (80,602) $ (310,216)
Interest and dividend income 306,156 24,752 330,908
Contribution from employer 171,191 20,417 191,608
Contribution from employees 382,828 32,365 415,193
Rollover contribution 15,953 - 15,953
------------------------------------------
Total additions 646,514 (3,068) 643,446
------------------------------------------
Deductions from net assets:
Benefit payments 405,197 18,116 423,313
Administrative expenses 20,901 2,011 22,912
------------------------------------------
Total deductions 426,098 20,127 446,225
------------------------------------------
Net interfund transfers 153,057 (153,057) -
------------------------------------------
Net increase (decrease) 373,473 (176,252) 197,221
Net assets available for benefits:
Beginning of year 6,002,405 673,465 6,675,870
------------------------------------------
End of year $ 6,375,878 $ 497,213 $6,873,091
==========================================
See Notes to Financial Statements.
-7-
-------------------------------------------
-------------------------------------------
1999
------------------------------------------
Participant Non- Total
Directed Participant
Directed
------------------------------------------
$ 92,133 $ (179,068) $ (86,935)
356,475 37,344 393,819
175,742 34,620 210,362
346,982 55,977 402,959
2,845 - 2,845
-------------------------------------------
974,177 (51,127) 923,050
-------------------------------------------
286,387 39,192 325,579
20,387 3,193 23,580
-------------------------------------------
306,774 42,385 349,159
-------------------------------------------
54,245 (54,245) -
-------------------------------------------
721,648 (147,757) 573,891
5,280,757 821,222 6,101,979
-------------------------------------------
$ 6,002,405 $ 673,465 $ 6,675,870
===========================================
-8-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
1
--------------------------------------------------------------------------------
DESCRIPTION OF PLAN
The following description of the Farmers and Merchants Trust Company
Profit-Sharing Plan (the "Plan") provides only general information.
Participants should refer to the Plan document for more complete
information.
General:
The Plan is a defined contribution plan established by Farmers and
Merchants Trust Company (the "Company") under the provisions of
Section 401(a) of the Internal Revenue Code ("Code"), which includes
a qualified deferred arrangement as described in Section 401(k) of
the Code for the benefit of eligible employees of the Company. All
employees who have completed one year of service, as defined, are
eligible to participate. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 ("ERISA"), as
amended.
Contributions:
Eligible employees can contribute an amount up to 19% of
compensation as defined by the Plan, limited by requirements of the
IRC. The Company, at its discretion, may match a percentage of each
Plan participant's deferrals up to a maximum of 5% of compensation.
The percentage of such discretionary matching contributions is
determined annually by the Company. In 2000 and 1999, the Company
matched 100% of Plan participants' first 3% deferral and 50% of the
next 2% deferral.
In addition, the Company may elect to contribute an additional
percentage of Plan participants' compensation. In 2000, the Company
declined to make an additional discretionary contribution. In 1999,
the Company made a 2% discretionary contribution.
The Plan may refund any excess deferrals in order to bring the plan
in compliance with code limitations.
Vesting:
A participant is immediately vested in his or her entire account
balance, including Company contributions.
Payment of benefits:
Upon retirement, death, disability or termination, a participant may
elect to receive distributions in the form of an annuity or lump-sum
amount, as defined.
Benefits due to terminated participants, which are included in net
assets for plan benefits in the accompanying statements, totaled $
-0- at December 31, 2000 and 1999, respectively.
-9-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
1
--------------------------------------------------------------------------------
DESCRIPTION OF PLAN (CONTINUED)
Participant accounts:
Individual accounts are maintained for each of the Plan's
participants to reflect the participant's share of the Plan's
income, the Company's contribution and the participant's
contribution. Allocations are based on participant account balances,
as defined.
Investment options:
All funds are participant directed except for the FFSC Stock and
Fixed Income Fund. Election changes can be made quarterly. The
Company administers the Plan and makes decisions related to its
investments.
The investment options available under the Plan are:
Equities and fixed income fund:
This fund invests primarily in cash equivalents and money
markets, government agency notes and bonds, common stocks and
domestic equity mutual funds.
FFSC stock and fixed income fund:
This fund invests primarily in government agency notes and
bonds and in employer common stock.
Fixed income fund:
This fund invests primarily in cash equivalents, money markets
and government agency notes and bonds.
Equities mutual fund:
This fund invests primarily in cash equivalents, money markets
and domestic equity mutual funds.
Money market fund:
This fund invests solely in the Dreyfus Treasury Prime Cash
Management Fund.
Global equity fund:
This fund invests primarily in diversified global equity
mutual funds.
Index 500 fund:
This fund invests primarily in cash equivalents and domestic
equity mutual funds.
-10-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
1
--------------------------------------------------------------------------------
DESCRIPTION OF PLAN (CONTINUED)
Participant loans:
Under the terms of the Plan, participants may request loans not to
exceed the lesser of $ 50,000 or 50% of their vested account balance
for payment of post-secondary education for the participant, spouse,
children or dependents, or the purchase of a principal residence for
the participant. Loans will have a market rate of interest, as
defined. Education loans and principal residence loans must be
repaid over a period of not longer than five years and in
installments not less frequently than quarterly. Additionally, no
loan may be less than $ 1,000 and no more than one loan may be
issued to a participant during the year. As of December 31, 2000 and
1999, outstanding loans totaled $ 3,305 and $ -0-, respectively.
2
--------------------------------------------------------------------------------
SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting:
The accompanying financial statements are prepared on the accrual basis
of accounting.
Income recognition:
Interest income is recorded as earned on the accrual basis. Dividend
income is recorded when declared.
Investment valuation:
Investments of the Plan are stated at fair value by reference to quoted
market prices. Because of the volatility of the financial markets in
which investments are traded, there is the risk that any future
determination of fair value could be significantly less than that
recorded in the accompanying financial statements. Purchases and sales
of securities are reflected on a trade-date basis. Realized gains and
losses are based on securities sold.
Use of estimates:
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of net assets available for plan benefits and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of changes in net assets available
for plan benefits during the reporting period. Actual results could
differ from those estimates.
-11-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
2
--------------------------------------------------------------------------------
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Administrative expenses:
All expenses are paid out of the Plan's assets.
New accounting standard:
In September 1999, the AICPA issued Statement of Position No. 99-3,
"Accounting for and Reporting of Certain Defined Contribution Plan
Investments and Other Disclosure Matters". This statement established
standards for simplified disclosures for certain investments. The Plan
adopted provisions of this statement for the Plan year ended December
31, 2000. As a result, disclosures made in the prior year for the
separate fund information have been eliminated in these financial
statements to be consistent with the current year presentation.
3
--------------------------------------------------------------------------------
INVESTMENTS
The Trust Department of the Company, trustee of the Plan, maintains all of
the Plan's investments and executes transactions therein.
The fair market values of individual assets that represent 5% or more of
the Plan's net assets as of December 31, 2000 and 1999 are as follows:
2000 1999
----------------------------
Franklin Financial Services Corporation Common $ - $ 385,102
Stock
Vanguard Windsor II Mutual Fund 1,562,131 2,192,353
SEI Large Cap Growth Fund 386,709 -
During the years ended December 31, 2000 and 1999, the Plan's investments
depreciated in fair value by $ (310,216) and $ (86,935), respectively, as
follows:
2000 1999
----------------------------
Common stock $ (308,770) $ 243,746
Corporate debt and equity securities 16,523 (12,409)
Mutual funds (45,090) (281,100)
Government securities 27,121 (37,172)
----------------------------
$ (310,216) $ (86,935)
============================
-12-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
4
--------------------------------------------------------------------------------
INCOME TAX STATUS
Although the Plan has received a favorable determination letter dated
January 20, 1993, from the Internal Revenue Service, it has not been
updated for the latest plan amendments. However, the Plan administrator
and the Plan's tax counsel believe that the Plan is currently designed and
being operated in compliance with the applicable requirements of the IRC.
Therefore, they believe that the Plan was qualified and the related trust
was tax-exempt through the year ended December 31, 2000.
5
--------------------------------------------------------------------------------
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA.
6
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
During the years ended December 31, 2000 and 1999, the Plan engaged in
transactions with the Company's parent, Franklin Financial Services
Corporation. During 2000 and 1999, the transactions included the purchase
of the parent's stock in the amount of $ 28,604 and $ 50,063,
respectively, and the sale of the parent's stock in the amount of $ 26,079
and $ 0, respectively. Also, the Plan held investments in Farmers and
Merchants Trust Company (F&M) certificates of deposits totaling $ 24,000
as of December 31, 2000 and 1999.
-13-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
7
--------------------------------------------------------------------------------
RECONCILIATION OF FINANCIAL STATEMENTS TO 5500
DECEMBER 31,
2000 1999
----------------------------
Investments:
Corporate debt and equity securities $ 2,390,370 $2,246,617
============================
Form 5500, Schedule H, Part I:
Item c(3)(B) $ 459,795 $ 319,191
Item c(4)(B) 1,930,575 1,927,426
----------------------------
2,390,370 $2,246,617
============================
Realized/unrealized gain and interest/
dividend income:
Net realized and unrealized appreciation in
value of investments $ (310,216) $ (86,935)
Interest and dividend income 330,908 393,819
----------------------------
$ 20,692 $ 306,884
============================
Form 5500, Schedule H, Part II:
Item b(1)(G) $ 97,186 $ 73,557
Item b(2)(C) 37,221 48,072
Item b(4)(C) 1,752 58,324
Item b(5)(c) (266,587) 149,082
Item b(10) 151,120 (22,151)
----------------------------
$ 20,692 $ 306,884
============================
Cash and short-term investments:
Dreyfus Treasury Prime Cash Management Fund $ 455,552 $ 178,798
SEI - Institutional Cash 14,401 5,508
Certificates of deposit 24,000 24,000
----------------------------
$ 493,953 $ 208,306
============================
Form 5500, Schedule H, Part I, Item c(1) $ 493,953 $ 208,306
============================
-14-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Equities and Fixed Income Fund:
Dreyfus Treasury Prime Cash Management Fund $ 80,960 $ 80,960
----------------------------
Certificates of deposit,
F&M Trust, 5.95%, due 11/05/02 20,000 20,000 *
----------------------------
Government securities:
U.S. Treasury note, 6.375%, due 3/31/01 5,000 5,011 5,005
U.S. Treasury note, 6.625%, due 7/31/01 10,000 10,066 10,053
U.S. Treasury note, 5.875%, due 11/30/01 25,000 24,844 25,070
U.S. Treasury note, 6.250%, due 1/31/02 50,000 50,000 50,406
U.S. Treasury note, 6.500%, due 5/31/02 25,000 25,125 25,383
U.S. Treasury note, 6.250%, due 6/30/02 10,000 9,994 10,131
U.S. Treasury note, 6.000%, due 7/31/02 10,000 9,941 10,106
U.S. Treasury note, 6.250%, due 8/31/02 20,000 19,987 20,307
U.S. Treasury note, 5.500%, due 5/31/03 20,000 19,462 20,163
U.S. Treasury note, 5.375%, due 6/30/03 90,000 87,244 90,506
U.S. Treasury note, 5.750%, due 8/15/03 25,000 24,476 25,375
U.S. Treasury note, 5.250%, due 5/15/04 50,000 47,891 50,156
U.S. Treasury note, 6.500%, due 5/15/05 75,000 75,000 79,125
U. S. Treasury note, 6.500%, due 8/15/05 10,000 9,900 10,575
U.S. Treasury note, 6.500%, due 10/15/06 65,000 64,789 69,367
Federal Home Loan Bank, 5.440%, due 10/15/03 70,000 66,762 69,716
Federal Home Loan Bank, 7.140%, due 6/06/01 5,000 5,041 5,020
Federal Home Loan Bank, 7.400%, due 9/21/06 25,000 24,664 25,195
FNMA, 6.340%, due 6/08/04 10,000 9,747 9,989
FNMA, 7.125%, due 3/15/07 10,000 9,975 10,669
FHLMC, 6.500%, due 1/15/23 9,188 8,465 8,930
----------------------------
608,384 631,247
----------------------------
-15-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Equities and Fixed Income Fund (Continued):
Corporate debt and equity securities:
Bank of America, 6.625%, due 6/15/04 $ 30,000 $ 29,504 $ 30,169
First Chicago NBD BankOne, 7.000%,
due 10/16/06 10,000 9,713 9,985
Ford Motor Credit, 7.500%, due 3/15/05 10,000 10,067 10,209
G.E. Corp., 6.500%, due 11/01/06 20,000 19,144 20,263
GMAC, 6.750%, due 6/15/06 25,000 24,164 24,919
GMAC, 7.125%, due 2/15/05 10,000 10,000 10,173
Household Financial Corp., 8.000%,
due 5/09/05 75,000 74,304 78,717
JP Morgan & Co., Inc., 5.750%, due
2/25/04 10,000 9,494 9,820
Nationsbank Corp., 6.500%, due
8/15/03 10,000 9,816 9,998
Phillip Morris, 7.625%, due 5/15/02 10,000 9,959 10,032
Phillip Morris, 7.000%, due 7/15/05 40,000 37,912 39,698
Sears Roebuck, 6.125%, due 1/15/06 15,000 13,730 14,328
Tele-Comm Inc., 7.250%, due 8/01/05 40,000 39,704 40,673
Wells Fargo & Co., 6.625%, due 7/15/04 35,000 34,234 35,486
America On-line 601 43,238 20,915
Anheuser-Busch Co. 600 22,643 27,300
Automatic Data Processing, Inc. 1,000 53,875 63,313
B P Amoco PLC 554 32,859 26,523
BankAmerica Corp. 505 25,345 23,167
Bristol Myers Squibb Co. 1,616 103,727 119,483
Cisco Systems 2,400 128,550 91,800
Citigroup Inc. 924 48,986 47,182
Compaq Computer Corp. 1,500 40,594 22,575
Delphi Automotive Systems Corp. 174 2,741 1,958
Duke Energy Corp. 175 8,772 14,919
EMC Corp. 1,000 54,280 66,500
E.I. Dupont DeNemours & Co. 900 59,288 43,481
Equifax Inc. 1,775 48,089 50,920
Exxon Mobil Corp. 650 52,366 56,509
General Electric Co. 2,700 139,275 129,431
General Motors Corp. 250 18,172 12,734
H. J. Heinz Co. 500 19,906 23,719
-16-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Equities and Fixed Income Fund (Continued):
Corporate debt and equity securities (continued):
Home Depot, Inc. 630 $ 31,050 $ 28,783
Intel Corp. 3,600 148,162 108,225
Lowe's Companies, Inc. 550 32,533 24,475
Lucent Technologies, Inc. 800 60,000 10,800
Marriott Intl Inc. 250 7,891 10,563
MBNA Corp. 900 24,525 33,244
McDonald's Corp 600 22,873 20,400
Medtronic Inc 300 16,417 18,112
Merck & Co., Inc. 1,200 80,625 112,350
Microsoft Corp. 1,500 175,125 65,062
Morgan Stanley, Dean Witter & Co. 1,500 107,062 118,875
Nokia Corporation 1,320 63,051 57,420
Nortel Networks Corp. 300 16,736 9,619
Omnicom Group 300 25,230 24,862
Oracle Corp. 2,000 64,916 58,125
Pepsico, Inc 350 13,767 17,347
Procter and Gamble Co. 500 45,706 39,219
SBC Communications, Inc. 600 29,250 28,650
Schlumberger LTD 200 11,225 15,987
Target Corp. 600 21,217 19,350
Transocean SedCo Forex, Inc 38 1,451 1,748
Tyco International Ltd. 975 44,299 54,112
Unilever N.V. 724 39,413 45,567
Verizon Communications, Inc. 1,000 61,562 50,125
Wal-Mart Stores, Inc. 1,000 52,966 53,125
Walt Disney Company 550 16,088 15,916
Wells Fargo & Co. 695 28,104 38,703
Worldcom, Inc. 525 28,153 7,383
----------------------------
2,503,848 2,275,046
----------------------------
-17-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Equities and Fixed Income Fund (Continued):
Mutual funds:
Brandywine Fund, Inc. 1,538.450 $ 58,076 $ 45,215
Eaton Vance Institutional Floating
Rate Fund 4,011.534 39,766 38,270
SEI International Equity Fund 2,189.711 31,131 24,941
Vanguard International Growth Fund 3,913.323 86,685 73,844
----------------------------
215,658 182,270
----------------------------
Total equities and fixed income fund 3,428,850 3,189,523
----------------------------
FFSC Stock and Fixed Income Fund:
Dreyfus Treasury Prime Cash Management Fund 11,815 11,815
----------------------------
Government securities:
U.S. Treasury note, 5.375%, due 6/30/03 10,000 9,694 10,056
Federal Home Loan Bank, 6.670%,
due 4/06/01 5,000 5,009 5,006
Federal Home Loan Bank, 5.710%,
due 10/01/03 10,000 9,600 9,925
Federal Home Loan Bank, 5.440%,
due 10/15/03 10,000 9,537 9,960
FHLMC, 6.000%, due 3/09/04 10,000 9,628 9,947
Federal Home Loan Bank, 5,625%,
due 5/10/04 25,000 23,758 24,758
Federal Home Loan Bank, 6.000%,
due 2/03/06 10,000 9,413 9,866
Federal Home Loan Bank, 7.400%,
due 9/21/06 10,000 9,866 10,078
FHLMC, 6.500%, due 1/15/23 4,287.950 3,950 4,167
----------------------------
90,455 93,763
----------------------------
-18-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
FFSC Stock and Fixed Income Fund
(Continued):
Corporate debt and equity securities:
Bank of America, 6.625%, due 6/15/04 20,000 $ 19,544 $ 20,113
Nationsbank Corp., 6.500%, due 8/18/03 10,000 9,816 9,998
Phillip Morris Global, 7.000%, due 7/15/05 10,000 9,478 9,924
Sears Roebuck, 6.125%, due 1/15/06 10,000 9,153 9,552
Wells Fargo & Co., 6.625%, due 7/15/04 35,000 34,234 35,486
----------------------------
82,225 85,073
----------------------------
Common stock,
Franklin Financial Services Corp. 18,548 378,795 301,405 *
----------------------------
Total FFSC stock and fixed income fund 563,290 492,056
----------------------------
Fixed Income Fund:
Dreyfus Treasury Prime Cash Management Fund 12,047 12,047
----------------------------
Certificate of deposit,
F&M Trust, 5.950%, due 11/05/02 4,000 4,000 *
----------------------------
Government securities:
U.S. Treasury note, 6.375%, due 3/31/01 5,000 5,011 5,005
U.S. Treasury note, 5.000%, due 4/30/01 25,000 24,633 24,938
U.S. Treasury note, 6.625%, due 7/31/01 9,000 9,059 9,048
U.S. Treasury note, 6.500%, due 5/31/02 5,000 5,025 5,076
U.S. Treasury note, 6.000%, due 7/31/02 5,000 4,970 5,053
U.S. Treasury note, 5.250%, due 5/15/04 25,000 23,946 25,078
U.S. Treasury note, 5.875%, due 11/15/05 10,000 10,217 10,341
Federal Home Loan Mortgage, 6.220%,
due 3/24/03 10,000 9,933 10,131
Federal Home Loan Bank, 8.050%,
due 5/24/05 10,000 10,000 10,306
FHLMC, 6.500%, due 1/15/23 4,287.950 3,950 4,167
----------------------------
106,744 109,143
----------------------------
-19-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Fixed Income Fund (Continued):
Corporate debt and equity securities:
Bank of America, 6.625%, due 6/15/04 20,000 $ 19,544 $ 20,112
Wells Fargo & Co., 6.625%, due 7/15/04 10,000 9,781 10,139
----------------------------
29,325 30,251
----------------------------
Total fixed income fund 152,116 155,441
----------------------------
Equities Mutual Fund:
Dreyfus Treasury Prime Cash Management Fund 4,885 4,885
Vanguard Windsor II Mutual Fund 57,431.282 1,436,989 1,562,131
----------------------------
Total equities mutual fund 1,441,874 1,567,016
----------------------------
Money Market Fund,
Dreyfus Treasury Prime Cash Management Fund 337,900 337,900
----------------------------
Global Equity Fund:
SEI - Prime Obligation 14,401 14,401
----------------------------
Equity mutual funds:
SEI - Large Capital Growth 14,554.363 494,823 386,709
SEI - Large Capital Value 15,462.291 284,871 301,051
SEI - Small Capital Growth 2,877.358 72,265 50,843
SEI - Small Capital Value 1,910.462 27,701 31,217
SEI - International Equity Fund 17,045.298 230,763 194,146
----------------------------
1,110,423 963,966
----------------------------
Total global equity fund 1,124,824 978,367
----------------------------
-20-
FARMERS AND MERCHANTS TRUST COMPANY PROFIT-SHARING PLAN
SCHEDULE H, PART IV, LINE 4 - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES (CONTINUED)
EIN: 23-0570230
PN: 002
--------------------------------------------------------------------------------
December 31, 2000
--------------------------------------------------------------------------------
Number Of
Shares/
Description Par Value Cost Fair Value
------------------------------------------------------------------------------------------
Index 500 Fund:
Dreyfus Treasury Prime Cash Management Fund $ 7,945 $ 7,945
Vanguard 500 Index Fund 629.449 84,432 76,705
----------------------------
92,377 84,650
----------------------------
Participant loan, 9.75% - 3,305
----------------------------
Total assets held for investment purposes $ 7,141,231 $ 6,808,258
============================
* Represents parties-in-interest.
-21-
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee of the Farmers and Merchants Trust Company Profit
Sharing Plan has duly caused this annual report to be signed on its behalf by
the undersigned thereunto duly authorized.
FARMERS AND MERCHANTS TRUST
COMPANY PROFIT SHARING PLAN
Date: June 27, 2001 By /s/ Elaine G. Meyers
----------------------
Elaine G. Meyers
Chief Financial Officer
EXHIBIT INDEX
THE FOLLOWING EXHIBITS ARE FILED AS PART OF THIS REPORT:
1. Consent of Beard Miller Company LLP