Back to GetFilings.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
[ x ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2000
OR
[ ] 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 _______ 0-19214 ____________
UNION NATIONAL FINANCIAL CORPORATION
____________________________________
(Exact Name of Registrant as Specified in its Charter)
Pennsylvania 23-2415179
____________ __________
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
101 East Main Street, P.O. Box 567
Mount Joy, Pennsylvania 17552
_______________________ _____
(Address of Principal Executive Offices) (Zip Code)
(717) 653-1441
______________
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.25 Par Value
(Title of Class)
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 X No ___
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]
The aggregate market value of the shares of Common Stock of
the Registrant held by nonaffiliates of the Registrant was
$28,658,431.97 as of March 26, 2001. As of March 26, 2001, the
Registrant had 2,579,542.50573 shares of Common Stock
outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:
Excerpts from Union National Financial Corporation's 2000
Annual Report to Stockholders are incorporated by reference into
Parts I, II and IV, hereof. Union National Financial
Corporation's Proxy Statement for its 2001 Annual Meeting is
incorporated by reference in response to Parts III and IV,
hereof.
UNION NATIONAL FINANCIAL CORPORATION
FORM 10-K
INDEX
PAGE NO.
PART I
Item 1 - Business . . . . . . . . . . . . . . . . . . . . 1
Item 2 - Properties . . . . . . . . . . . . . . . . . . . 7
Item 3 - Legal Proceedings . . . . . . . . . . . . . . . .9
Item 4 - Submission of Matters to a Vote of Security
Holders . . . . . . . . . . . . . . . . . . . . 9
PART II
Item 5 - Market for Registrant's Common Equity and Related
Shareholder Matters . . . . . . . . . . . . . . 10
Item 6 - Selected Financial Data . . . . . . . . . . . . 10
Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operation . .11
Item 7A- Quantitative and Qualitative Disclosure About
Market Risk . . . . . . . . . . . . . . . . . .11
Item 8 - Financial Statements and Supplementary Data . . 11
Item 9 - Changes In and Disagreements With Accountants
on Accounting and Financial Disclosure . . . . .11
PART III
Item 10 - Directors and Executive Officers of the
Registrant . . . . . . . . . . . . .. . . . . . 12
Item 11 - Executive Compensation . . . . . . . . . . . . .12
Item 12 - Security Ownership of Certain Beneficial Owners
and Management . . . . . . . . . . . . . . . . .12
Item 13 - Certain Relationships and Related Transactions .12
PART IV
Item 14 - Exhibits, Financial Statements, Schedules and
Reports on Form 8-K . . . . . . . . . . . . . . . . . . . 13
Signatures . . . . . . . . . . . . . . . . . . . . . . . .16
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . 18
PART I
______
Union National's management has made forward-looking
statements in this document, and in documents that it
incorporates by reference, that are subject to risks and
uncertainties. Forward-looking statements include the
information concerning possible or assumed future results of
operations of Union National Financial Corporation, Union
National Community Bank or the combined company. When management
uses words such as "believes," "expects," "anticipates" or
similar expressions, management is making forward-looking
statements.
Readers should note that many factors, some of which are
discussed elsewhere in this document and in the documents that
management incorporates by reference, could affect the future
financial results of Union National Financial Corporation, Union
National Community Bank or the combined company and could cause
those results to differ materially from those expressed in the
forward-looking statements contained or incorporated by reference
in this document. These factors include the following:
* operating, legal and regulatory risks;
* economic, political, and competitive forces;
* rapidly changing technology; and
* the risk that our analyses of these risks and forces
could be incorrect and/or that the strategies developed to
address them could be unsuccessful.
ITEM 1. BUSINESS.
_______ _________
Union National Financial Corporation, a Pennsylvania
business corporation, is a bank holding company registered under
the Bank Holding Company Act of 1956 and is supervised by the
Board of Governors of the Federal Reserve System. Union National
Financial Corporation was incorporated on June 26, 1986, under
the Business Corporation Law of the Commonwealth of Pennsylvania.
Union National Financial Corporation commenced operations on
January 2, 1987, upon consummation of the acquisition of all of
the outstanding shares of The Union National Mount Joy Bank,
which effective February 6, 1998, changed its name to Union
National Community Bank. Union National Financial Corporation's
business consists primarily of managing and supervising Union
National Community Bank, and its principal source of income is
dividends paid by Union National Community Bank. Union National
Financial Corporation has one wholly-owned subsidiary, Union
National Community Bank.
Union National Community Bank was organized in 1865 under a
national charter. Union National Community Bank is a national
banking association and a member of the Federal Reserve System.
The deposits of Union National Community Bank are insured by the
Federal Deposit Insurance Corporation to the maximum extent
permitted by law. Union National Community Bank has one main
office with an annex and seven branch locations within Lancaster
County, Pennsylvania. It is a full service commercial bank,
providing a wide range of
services to individuals and small to medium-sized businesses in
its south central Pennsylvania market area. Union National
Community Bank accepts time, demand, and savings deposits and
makes secured and unsecured commercial, real estate and consumer
loans. Union National Community Bank also has a full-service
trust department, the Wealth Management Group located in
Lancaster City.
Union National Financial Corporation's executive offices are
located at 101 East Main Street, P.O. Box 567, Mount Joy,
Pennsylvania 17552. Its telephone number is (717) 653-1441.
Union National Financial Corporation experiences substantial
competition in attracting and retaining deposits and in lending
funds. Financial institutions compete for deposits by offering
attractive rates and the convenient office locations. Direct
competition for deposits comes primarily from other commercial
banks and thrift institutions. Competition for deposits also
comes from money market mutual funds, corporate and government
securities and credit unions. The primary factors in the
competition for loans are interest rates, loan origination fees
and the range of products and services offered. Competition for
origination of real estate loans normally comes from other
commercial banks, thrift institutions, mortgage bankers, mortgage
brokers and insurance companies.
For additional information concerning Union National
Financial Corporation's business activities, see Part II, Item 7
of this Annual Report on Form 10-K.
Supervision and Regulation - Union National Financial Corporation
_________________________________________________________________
Union National Financial Corporation operates in a heavily
regulated environment. Changes in laws and regulations affecting
Union National Financial Corporation and its subsidiary, Union
National Community Bank, may have an impact on operations. See
"Supervision and Regulation Union National Financial Corporation"
and "Supervision and Regulation Union National Community Bank"
below and pages 31 and 32 of the 2000 Annual Report to
Stockholders. The annual report is included in Exhibit 13 to
this report and is incorporated here by reference.
The Bank Holding Company Act prohibits Union National
Financial Corporation from acquiring:
* direct or indirect control of more than 5% of the voting
stock of any bank; or
* substantially all of the assets of any bank; or
* merging with another bank holding company;
without the prior approval of the Federal Reserve. The
Pennsylvania Department of Banking also must approve any similar
consolidation. Pennsylvania law permits Pennsylvania bank
holding companies to control an unlimited number of banks.
The Bank Holding Company Act restricts Union National
Financial Corporation from engaging in activities to other than
those that the Federal Reserve has found:
* to be closely related to banking; and
* which are expected to produce benefits for the public
that will outweigh any potentially adverse effects.
To this end, the Bank Holding Company Act prohibits Union
National Financial Corporation from:
* engaging in most non-banking businesses; or
* acquiring ownership or control of more than 5% of the
outstanding voting stock of any company engaged in a non-banking
business; unless
* the Federal Reserve has determined that the non-banking
business is closely related to banking.
Under the Bank Holding Company Act, the Federal Reserve may
require a bank holding company to end a non-banking business if
it constitutes a serious risk to the financial soundness and
stability of any bank subsidiary of the bank holding company.
Other than making equity investments in low to moderate
income housing limited partnerships, Union National Financial
Corporation does not at this time engage in any other permissible
activities, nor does Union National Financial Corporation have
any current plans to engage in any other permissible activities
in the foreseeable future.
Subsidiary banks of a bank holding company are subject to
restrictions imposed by the Federal Reserve Act on any extensions
of credit to the bank holding company or any of its subsidiaries,
on investments in the stock or other securities of the bank
holding company and on taking of such stock or securities as
collateral for loans to any borrower.
LEGISLATION AND REGULATORY CHANGES. From time to time,
Congress or the Pennsylvania legislature enacts legislation
which has the effect of increasing the cost of doing business,
limiting or expanding permissible activities or affecting the
competitive balance between banks and other financial
institutions. Proposals to change the laws and regulations
governing the operations and taxation of banks, bank holding
companies and other financial institutions are frequently made in
Congress, and before various bank regulatory agencies.
Management cannot predict the likelihood of any major changes or
the impact such changes might have on Union National Financial
Corporation and its subsidiary. The following paragraphs discuss
legislative or regulatory changes of potential significance to
Union National Financial Corporation which Congress has recently
enacted and others which Congress or various regulatory or
professional agencies currently are discussing.
The Federal Reserve Board, the Federal Deposit Insurance
Corporation and the Comptroller of the Currency have issued
certain risk-based capital guidelines, which supplement existing
capital requirements. The guidelines require all United States
banks and bank holding companies to maintain a minimum risk-based
capital ratio of 8%, of which at least 4% must be in the form of
common stockholders' equity. Assets are assigned to five risk
categories, with higher levels of capital required for the
categories perceived as representing greater risk. The required
capital will represent equity and (to the extent permitted)
nonequity capital as a percentage of total risk-weighted assets.
The risk-based capital rules are designed to make regulatory
capital requirements more sensitive to differences in risk
profiles among banks and bank holding companies and to minimize
disincentives for holding liquid assets. On the basis of an
analysis of the rules and the projected composition of Union
National Financial Corporation's consolidated assets, management
does not believe that the risk-based capital rules have a
material effect on Union National Financial Corporation's
business and capital plans. Union National Community Bank has
capital ratios exceeding the regulatory requirements. See pages
13, 31, and 32 of Union National Financial Corporation's 2000
Annual Report to Stockholders for information concerning Union
National Financial Corporation's capital ratios which are
included in Exhibit 13 and incorporated here by reference.
PENDING LEGISLATION. Management cannot anticipate what
changes Congress may enact or, if enacted, their impact on Union
National Financial Corporation's financial position and reported
results of operation. As a consequence of the extensive
regulation of commercial banking activities in the United States,
Union National Financial Corporation's and Union National
Community Bank's businesses may be adversely affected by federal
and state legislation and regulations that may increase the costs
of doing business. See also page 32 of Union National Financial
Corporation's 2000 Annual Report to Stockholders, which pages are
included in Exhibit 13 and incorporated here by reference.
EFFECTS OF INFLATION. Inflation has some impact on Union
National Financial Corporation's and Union National Community
Bank's operating costs. Unlike many industrial companies,
however, substantially all of Union National Community Bank's
assets and liabilities are monetary in nature. As a result,
interest rates have a more significant impact on Union National
Financial Corporation's and Union National Community Bank's
performance than the general level of inflation. Over short
periods of time, interest rates may not necessarily move in the
same direction or in the same magnitude as prices of goods and
services.
MONETARY POLICY. Domestic economic conditions and the
monetary and fiscal policies of the United States Government and
its agencies affect the earnings of Union National Financial
Corporation and Union National Community Bank. An important
function of the Federal Reserve System is to regulate the money
supply and interest rates. Among the instruments used to
implement those objectives are open market operations in United
States government securities and changes in reserve requirements
against member bank deposits. The Federal Reserve uses these
instruments in varying combinations to influence overall growth
and distribution of bank loans, investments and deposits, and
their use may also affect rates charged on loans or paid for
deposits.
Union National Community Bank is a member of the Federal
Reserve System. The policies and regulations of the Federal
Reserve Board have a significant effect on its deposits, loans
and investment growth, as well as the rate of interest earned and
paid, and are expected to affect Union National Community Bank's
operations in the future. The effect of Federal Reserve Board
policies and regulations upon the future business and earnings of
Union National Financial Corporation and Union National Community
Bank cannot be predicted.
ENVIRONMENTAL LAWS. Neither Union National Financial
Corporation nor Union National Community Bank anticipate that
compliance with environmental laws and regulations will have any
material effect on capital, expenditures, earnings, or on its
competitive position. However, environmentally related hazards
have become a source of high risk and potentially unlimited
liability for financial institutions. Environmentally
contaminated properties owned by an institution's borrowers may
result in a drastic reduction in the value of the collateral
securing the institution's loans to such borrowers, high
environmental clean up costs to the borrower affecting its
ability to repay the loans, the subordination of any lien in
favor of the institution to a state or federal lien securing
clean up costs, and liability to the institution for clean up
costs if it forecloses on the contaminated property or becomes
involved in the management of the borrower. To minimize this
risk, Union National Community Bank may require an environmental
examination of and report with respect to the property of any
borrower or prospective borrower if circumstances affecting the
property indicate a potential for contamination, taking into
consideration a potential loss to the institution in relation to
the borrower. Such examination must be performed by an
engineering firm experienced in environmental risk studies and
acceptable to the institution, and the cost of such examinations
and reports are the responsibility of the borrower. These costs
may be substantial and may deter a prospective borrower from
entering into a loan transaction with Union National Community
Bank. Union National Financial Corporation is not aware of any
borrower who is currently subject to any environmental
investigation or clean up proceeding that is likely to have a
material adverse effect on the financial condition or results of
operations of Union National Community Bank.
In 1995, the Pennsylvania General Assembly enacted the
Economic Development Agency, Fiduciary and Lender Environmental
Liability Protection Act which, among other things, provides
protection to lenders from environmental liability and
remediation costs under the environmental laws for releases and
contamination caused by others. A lender who engages in
activities involved in the routine practices of commercial
lending, including, but not limited to, the providing of
financial services, holding of security interests, workout
practices, foreclosure or the recovery of funds from the sale of
property shall not be liable under the environmental acts or
common law equivalents to the Pennsylvania Department of
Environmental Resources or to any other person by virtue of the
fact that the lender engages in such commercial lending practice.
A lender, however, will be liable if it, its employees or agents,
directly cause an immediate release or directly exacerbate a
release of regulated substances on or from the property, or
knowingly and willfully compelled the borrower to commit an
action which caused such release or violate an environmental act.
The Economic Development Agency, Fiduciary and Lender
Environmental Liability Protection Act, however, does not limit
federal liability which still exists under certain circumstances.
As discussed above, there are several federal and state
statutes that regulate the obligations and liabilities of
financial institutions pertaining to environmental issues. In
addition to the potential for attachment of liability resulting
from its own actions, a bank may be held liable under certain
circumstances for the actions of its borrowers, or third parties,
when such actions result in environmental problems on properties
that collateralize loans held by Union National Community Bank.
Further, the liability has the potential to far exceed the
original amount of the loan issued by Union National Community
Bank. Currently, neither Union National Financial Corporation
nor Union National Community Bank is a party to any pending legal
proceeding pursuant to any environmental statute, nor is Union
National Financial Corporation or Union National Community Bank
aware of any circumstances that may give rise to liability under
any such statute.
Supervision and Regulation - Union National Community Bank
___________________________________________________________
The operations of Union National Community Bank are subject
to federal and state statutes applicable to banks chartered under
the banking laws of the United States, to members of the Federal
Reserve System and to banks whose deposits are insured by the
FDIC. Bank operations are also subject to regulations of the
Comptroller of the Currency, the Federal Reserve Board and the
FDIC.
The primary supervisory authority of Union National
Community Bank is the Comptroller of the Currency, which
regulates and examines Union National Community Bank. The
Comptroller of the Currency has the authority under the
Financial Institutions Supervisory Act to prevent a national bank
from engaging in an unsafe or unsound practice in conducting its
business.
Federal and state banking laws and regulations govern, among
other things, the scope of a bank's business, the investments a
bank may make, the reserves against deposits a bank must
maintain, loans a bank makes and collateral it takes, the maximum
interest rates a bank may pay on deposits, the activities of a
bank with respect to mergers and consolidations and the
establishment of branches.
As a subsidiary of a bank holding company, Union National
Community Bank is subject to certain restrictions imposed by the
Federal Reserve Act on any extensions of credit to the parent
bank holding company or its subsidiaries, on investments in the
stock or other securities of the bank holding company or its
subsidiaries and on taking such stock or securities as collateral
for loans. The Federal Reserve Act and Federal Reserve Board
regulations also place certain limitations and reporting
requirements on extensions of credit by a bank to principal
shareholders of its parent holding company, among others, and to
related interests of such principal shareholders. In addition,
such legislation and regulations may affect the terms upon which
any person becoming a principal shareholder of a holding company
may obtain credit from banks with which the subsidiary bank
maintains a correspondent relationship.
OTHER. From time to time, various types of federal and
state legislation have been proposed that could result in
additional regulation of, and restrictions on, the business of
Union National Community Bank. It cannot be predicted whether
any such legislation will be adopted or, if adopted, how such
legislation would affect the business of Union National Community
Bank. As a consequence of the extensive regulation of commercial
banking activities in the United States, Union National Community
Bank's business is particularly susceptible to being affected by
federal legislation and regulations that may increase the costs
of doing business.
STATISTICAL DATA. The information required by this Item is
incorporated by reference from pages 18 through 32 of Union
National Financial Corporation's 2000 Annual Report to
Stockholders.
EMPLOYEES. As of March 26, 2001, Union National Community
Bank had 114 full-time employees and 18 part-time employees.
None of these employees is represented by a collective
bargaining agent, and Union National Financial Corporation
believes it enjoys good relations with its personnel.
ITEM 2. PROPERTIES.
______ ___________
Union National Community Bank owns its main office, five
branch offices, the administration services center and certain
parking facilities related to its banking offices, all of which
are free and clear of any lien. Union National Community Bank's
main office is located in the central business district of Mount
Joy, Pennsylvania. Below is a table containing the location and
date of acquisition of Union National Community Bank's
properties. In addition, Union National Community Bank leases
office space for two branch offices located in Columbia and
Manheim, Pennsylvania. The bank also leases its Wealth
Management Group property in Lancaster.
PROPERTIES OWNED BY UNION NATIONAL COMMUNITY BANK
Office and Address Description of Property Date Acquired
Main Office Main Bank Office 1911
101 East Main Street Cut limestone and brick.
Mount Joy, PA 17552 1995 addition is concrete
over steel construction.
Containing approximately
a total of 22,251 sq. ft.
of space.
Main Office Annex Wood frame construction September, 1992
115 East Main Street with aluminum siding.
Mount Joy, PA 17552 Containing approximately
1,632 sq. ft. of space.
Maytown Branch Office Branch Bank April, 1972
100 West High Street Brick veneer, shingled roof
Maytown, PA 17550 with wood trusses. Containing
approximately 4,960 sq. ft.
of space.
Hempfield Branch Office Branch Bank June, 1979
190 Stony Battery Road Brick with wood shingle roof.
Salunga, PA 17538 Containing approximately
4,619 sq. ft. of space.
Elizabethtown Branch
Office Branch Bank January, 1988
1275 South Market Street Brick veneer, shingled roof
Elizabethtown, PA 17022 with wood trusses.
Containing approximately
6,668 sq. ft. of space.
Motor Bank Branch Office Drive-up Bank Branch November, 1972
21 North Barbara Street Brick on frame.
Mount Joy, PA 17552 Containing approximately
445 sq. ft. of space.
Administration
Services Center Brick on concrete block December, 1984
Bank Administration
Building with wood and steel frame.
25 North Barbara Street Containing approximately
Mount Joy, PA 17552 9,398 sq. ft. of space.
Columbia Branch Office Branch Bank October, 1992
921 Lancaster Avenue One story brick building
Columbia, PA 17512 containing approximately
2,257 sq. ft. of space.
PROPERTY LEASED BY THE BANK
Office and Address Description of Property Date Leased
__________________ _______________________ ______________
Manheim Branch Office Concrete block building January, 1995
701 Lancaster Road containing 4,266 sq. ft.
Manheim, PA 17545 of space of which approximately
2,600 sq. ft. of space is
currently used for banking
purposes.
Columbia Branch Office Branch Bank April 11, 2000
401 Locust Street Brick/Granite Building
Columbia, PA 17512 First floor of 3 story building
containing 2,120 sq. ft. of space
currently used for banking purposes.
No drive-up facilities.
Wealth Management Group Brick/Steel Frame August 1, 2000
150 N. Queen Street Building Fifth floor of 7 story building
5th Floor, Suite 500 containing 5,080 sq. ft. of space
Lancaster, PA 17604 currently used for trust and asset
management purposes.
In management's opinion, the above properties are in good
condition and are adequate for Union National Community Bank's
purposes.
ITEM 3. LEGAL PROCEEDINGS.
______ __________________
Management, after consulting with Union National Financial
Corporation's legal counsel, is not aware of any litigation that
would have a material adverse effect on the consolidated
financial position of Union National Financial Corporation.
There are no proceedings pending other than ordinary routine
litigation incident to the business of Union National Financial
Corporation and its subsidiary, Union National Community Bank.
In addition, no material proceedings are known to be contemplated
by governmental authorities against Union National Financial
Corporation or Union National Community Bank.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
_______ ____________________________________________________
None.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.
_______ __________________________________________________
Market and dividend information required by this Item is
incorporated here by reference from the inside front cover of
Union National Financial Corporation's 2000 Annual Report to
Stockholders which is included in Exhibit 13 to this Annual
Report on Form 10-K. Union National Financial Corporation's
common stock is traded on a very limited basis in the local over-
the-counter market and on the OTC Bulletin Board under the symbol
UNNF. Bid and asked information is available on some internet
websites providing financial market news. Information concerning
actual trades is included on the inside front cover of Union
National Financial Corporation's 2000 Annual Report to
Stockholders and is also available on some internet websites.
This information represents a limited amount of share transfer
activity.
Union National Financial Corporation and, prior to Union
National Financial Corporation's organization as a bank holding
company, Union National Community Bank have paid regular cash
dividends on their common stock for more than thirty-five years.
Union National Financial Corporation expects to pay future
dividends; however, payment of such dividends will depend upon
earnings of Union National Financial Corporation and of Union
National Community Bank, their financial condition, capital
requirements and other factors, such as regulatory and legal
requirements. It is anticipated that substantially all of the
funds available for the payment of dividends by Union National
Financial Corporation will be derived from dividends paid to it
by Union National Community Bank.
Additional information required by this Item regarding
dividend restrictions is incorporated here by reference from
pages 31 and 32 of Union National Financial Corporation's 2000
Annual Report to Stockholders, which is included in Exhibit 13 to
this Form 10-K.
As of March 26, 2001, there were approximately 913 holders
of record of Union National Financial Corporation's common stock.
ITEM 6. SELECTED FINANCIAL DATA.
_______ ________________________
The information required by this Item is incorporated here
by reference from pages 18 and 19 of Union National Financial
Corporation's 2000 Annual Report to Stockholders which is
included in Exhibit 13 to this Annual Report on Form 10-K.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION.
_______ _________________________________________________
The information required by this Item is incorporated by
reference from pages 20 through 32 of Union National Financial
Corporation's 2000 Annual Report to Stockholders which are
included in Exhibit 13 to this Annual Report on Form 10-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET
RISK.
________ ____________________________________________________
The information required by this Item is incorporated here
by reference from pages 29 and 30 of Union National Financial
Corporation's 2000 Annual Report to Stockholders which pages are
included in Exhibit 13 to this Annual Report on Form 10-K.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
_______ ____________________________________________
The information required by this Item is incorporated here
by reference from pages 4 through 18 of Union National Financial
Corporation's 2000 Annual Report to Stockholders. which are
included in Exhibit 13 to this Annual Report on Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
_______ ________________________________________________
None.
PART III
________
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.
________ _______________________________________________
The information required by this Item is incorporated here
by reference from pages 3 through 13, 17, 18 and 28 of Union
National Financial Corporation's proxy statement for its 2001
Annual Meeting of Shareholders.
ITEM 11. EXECUTIVE COMPENSATION.
________ _______________________
The information required by this Item is incorporated here
by reference from pages 19 through 27 of Union National Financial
Corporation's proxy statement for its 2001 Annual Meeting of
Shareholders.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.
________ ___________________________________________________
The information required by this Item is incorporated here
by reference from pages 3 through 5 and pages 17,18 and 25 of
Union National Financial Corporation's proxy statement for its
2001 Annual Meeting of Shareholders.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
________ _______________________________________________
The information required by this Item is incorporated here
by reference from page 28 of Union National Financial
Corporation's Proxy Statement for its 2001 Annual Meeting of
Shareholders.
PART IV
_______
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K.
________ ____________________________________________________
(a) 1. Financial Statements.
The following financial statements are included
by reference in Part II, Item 8 hereof.
Independent Auditor's Report.
Consolidated Balance Sheets.
Consolidated Statements of Income
Consolidated Statements of Cash Flows
Consolidated Statements of Changes in
Stockholders' Equity
Notes to Consolidated Financial Statements
2. The financial statement schedules required by
this Item are omitted because the information is either
inapplicable, not required or is in the consolidated financial
statements as a part of this Report.
3. The following Exhibits are filed herewith, or
incorporated by reference as a part of this Report:
3(i) Union National Community Bank's Amended
Articles of Incorporation. (Incorporated by reference to Exhibit
3(i) to Union National Financial Corporation's Registration
Statement No. 333-27837 on Form S-8, filed with the Commission on
May 27, 1997.)
3(ii) Union National Financial Corporation's
Amended and Restated By-laws. (Incorporated by reference to
Exhibit 3(ii) to Union National Financial Corporation's current
report on Form 8-K, filed with the Commission on March 30, 2001.)
10.1 Executive Employment Agreement dated as
of January 1, 1999, between Mark D. Gainer and Union National
Financial Corporation (Incorporated by Reference to Exhibit 10.1
to Union
National Financial Corporation's Annual
Report on Form 10-K for the Year Ended December 31, 1998).
10.2 Union National Financial Corporation
1988 Stock Incentive Plan. (Incorporated by reference to Exhibit
4.3 to Union National Financial Corporation's Registration
Statement No. 333-27837 on Form S-8, filed with the Commission on
May 27, 1997.)
10.3 Union National Financial Corporation
1997 Stock Incentive Plan. (Incorporated by reference to Exhibit
4.5 to Union National Financial Corporation's Registration
Statement No. 333-27837 on Form S-8, filed with the Commission on
May 27, 1997.)
10.4 Change of Control Agreement, dated June
17, 1999, between Michael A. Frey and Union National Financial
Corporation. (Incorporated by Reference to Union National
Financial Corporation's Annual Report on Form 10-K for the Year
Ended December 31, 1999.)
10.5 Union National Financial Corporation's
Employee Stock Purchase Plan (Incorporated by Reference to
Exhibit 4.4 to Union National Financial Corporation's
Registration Statement No. 333-27837 on Form S-8, filed with the
Commission on May 27, 1997).
11 Statement re: Computation of Earnings Per
Share. (Incorporated by Reference to page 19 of Union National
Financial Corporation's 2000 Annual Report to Stockholders, which
is included herein at Exhibit 13.)
12 Statement re: Computation of Ratios.
(Incorporated by Reference to page 19 of Union National Financial
Corporation's 2000 Annual Report to Stockholders, which is
included herein at Exhibit 13.)
13 Excerpts from Union National Financial
Corporation's 2000 Annual Report to Stockholders.
21 Subsidiaries of the Union National
Financial Corporation (Incorporated by Reference to Exhibit 21 to
Union National Financial Corporation's Annual Report on Form 10-K
for the Year Ended December 31, 1998).
23.1 Consent of Beard Miller & Company, LLP,
Independent Auditors.
23.2 Consent of Trout, Ebersole, & Groff,
LLP, Certified Public Accountants
(b) No Current Report on Form 8-K was filed by Union
National Financial Corporation during the fourth quarter of the
2000 fiscal year.
(c) The exhibits required to be filed by this Item are
listed under Item 14(a)3, above.
(d) NOT APPLICABLE.
SIGNATURES
__________
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
UNION NATIONAL FINANCIAL CORPORATION
(Registrant)
By /s/ Mark D. Gainer
__________________________
Mark D. Gainer
President and Chief Executive Officer
Date: March 22, 2001
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of Union National Financial Corporation and in
the capacities and on the dates indicated.
DATE
____
By /s/ Mark D. Gainer March 22, 2001
___________________________
Mark D. Gainer
President, Chief Executive Officer
and Director (principal executive officer)
By /s/ Donald H. Wolgemuth March 22, 2001
___________________________
Donald H. Wolgemuth
Chairman of the Board of Directors
and Director
By /s/ William E. Eby March 22, 2001
___________________________
William E. Eby, Director
By /s/ Clement M. Hoober March 22, 2001
___________________________
Clement M. Hoober, CPA,
Chief Financial Officer (principal
financial officer and principal
accounting officer)
By /s/ Frank R. Eichler March 22, 2001
____________________________
Franklin R. Eichler, Director
By /s/ Daniel C. Gohn March 22, 2001
____________________________
Daniel C. Gohn, Director
By /s/ Carl R. Hallgren March 22, 2001
____________________________
Carl R. Hallgren, Director
By /s/ David G. Heisey March 22, 2001
____________________________
David G. Heisey, Director
By /s/ William D. Linkous March 22, 2001
____________________________
William D. Linkous, Director
By /s/ Darwin A. Nissley March 22, 2001
____________________________
Darwin A. Nissley, Director
By /s/ Daniel H. Raffensperger March 22, 2001
____________________________
Daniel H. Raffensperger, Director
By /s/ Benjamin W. Piersol, Jr. March 22, 2001
____________________________
Benjamin W. Piersol, Jr., Director
EXHIBIT INDEX
Sequential Page
Number in Manually
Exhibit Number Signed Original
_______________ __________________
3(i) Union National Financial Corporation's Amended
Articles of Incorporation. (Incorporated by reference to Exhibit
3(i) to Union National Financial Corporation's Registration
Statement No. 333-27837 on Form S-8,filed with the Commission on
May 27, 1997.)
3(ii) Union National Financial Corporation's Amended and
Restated By-laws. (Incorporated by reference to Exhibit 3(ii) to
Union National Financial Corporation's current report on Form 8-
K, filed with the Commission on March 30, 2001.)
10.1 Executive Employment Agreement dated as of January
1,1999, between Mark D. Gainer and Union National Financial
Corporation (Incorporated by reference to Exhibit 10.1 to Union
National Financial Corporation's Annual Report on Form 10-K for
the Year Ended December 31, 1998.)
10.2 Union National Financial Corporation 1988 Stock
Incentive Plan. (Incorporated by Reference to Exhibit 4.3 to
Union National Financial Corporation's Registration
Statement No. 333-27837 on Form S-8, filed with the
Commission on May 27, 1997.)
10.3 Union National Financial Corporation's 1997 Stock
Incentive Plan. (Incorporated by Reference to Exhibit 4.5 to
Union National Financial Corporation's Registration Statement
No. 333-27837 on Form S-8, filed with the Commission on May 27,
1997.)
10.4 Change in Control Agreement, dated as of June 17,
1999, between Michael A. Frey and Union National Financial
Corporation. (Incorporated by Reference to Exhibit 10.4 to Union
National Financial Corporation's Annual Report on Form 10-K
for the Year Ended December 31, 1999.)
10.5 Union National Financial Corporation's Employee
Stock Purchase Plan. (Incorporated by Reference to Exhibit 4.4
to Union National Financial Corporation's Registration Statement
No. 333-27837 on Form S-8, filed with the Commission on
May 27, 1997.)
11 Statement re: Computation of Earnings Per Share.
(Incorporated by Reference to page 19 of Union National Financial
Corporation's 2000 Annual Report to Stockholders, which is
included herein at Exhibit 13.)
12 Statement re: Computation of Ratios. (Incorporated
by Reference to page 19 of Union National Financial Corporation's
2000 Annual Report, which is included herein at Exhibit 13.)
13 Excerpts from Union National Financial Corporation's
2000 Annual Report to Shareholders.
21 Subsidiaries of Union National Financial
Corporation. (Incorporated by Reference to Exhibit 21 to Union
National Financial Corporation's Annual Report on Form 10-K for
the Year Ended December 31, 1998.)
23.1 Consent of Beard Miller Company, LLP, Independent
Auditors.
23.2 Consent of Trout, Ebersole & Groff, LLP, Certified
Public Accountants.