UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2008
 OR
 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 0-17455
 Comm Bancorp, Inc.
 
 Pennsylvania
(State or other jurisdiction of incorporation 
or organization)
    
    23-2242292
(I.R.S. Employer Identification Number)125 North State Street, Clarks Summit, PA
(Address of principal executive offices)
    
    18411
(Zip Code)
 (570) 586-0377
 
 
  þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



COMM BANCORP, INC.
FORM 10-Q
 March 31, 2008
 INDEX
 Contents
    
    Page No.Part I. Financial Information:Item 1. Financial Statements.Consolidated Statements of Income and Comprehensive Income 
for the Three Months Ended March 31, 2008 and 2007
    
    
    3Consolidated Balance Sheets  March 31, 2008, and December
31, 2007
    
    
    4Consolidated Statements of Changes in Stockholders Equity
for the Three Months Ended March 31, 2008 and 2007
    
    
    5Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 2008 and 2007
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    10Item 3. Quantitative and Qualitative Disclosures About Market
Risk
    
    
    *Item 4. Controls and Procedures
    
    
    44Item 4T. Controls and Procedures
    
    
    *Part II. Other Information:Item 1. Legal Proceedings
    
    
    45Item 1A. Risk Factors
    
    
    *Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    .        45Item 3. Defaults Upon Senior Securities
    
    
    45Item 4. Submission of Matters to a Vote of Security Holders
    
    
    45Item 5. Other Information.
    
    
    45Item 6. Exhibits
    
    
    45Signatures
    
    
    46Exhibit Index
    
    
    47
 
 *
    
    Not Applicable 2




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##### 



Comm Bancorp, Inc.  CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME  (Dollars in thousands, except per share data)
 For the Three Months Ended March 31
    
    2008
    
    
    2007Interest income:Interest and fees on loans:Taxable
    
    $
    7,568
    
    
    $
    7,301Tax-exempt
    
    
    571
    
    
    
    400Interest and dividends on investment securities
available-for-sale:Taxable
    
    
    43
    
    
    
    573Tax-exempt
    
    
    364
    
    
    
    371Dividends
    
    
    12
    
    
    
    11Interest on federal funds sold
    
    
    2
    
    
    
    3Total interest income
    
    
    8,560
    
    
    
    8,659Interest expense:Interest on deposits
    
    
    3,270
    
    
    
    3,434Interest on short-term borrowings
    
    
    128
    
    
    
    144Total interest expense
    
    
    3,398
    
    
    
    3,578Net interest income
    
    
    5,162
    
    
    
    5,081Provision for loan losses
    
    
    330
    
    
    
    225Net interest income after provision for
loan losses
    
    
    4,832
    
    
    
    4,856Noninterest income:Service charges, fees and commissions
    
    
    798
    
    
    
    705Mortgage banking income
    
    
    170
    
    
    
    75Total noninterest income
    
    
    968
    
    
    
    780Noninterest expense:Salaries and employee benefits expense
    
    
    2,130
    
    
    
    1,879Net occupancy and equipment expense
    
    
    638
    
    
    
    634Other expenses
    
    
    1,231
    
    
    
    1,240Total noninterest expense
    
    
    3,999
    
    
    
    3,753Income before income taxes
    
    
    1,801
    
    
    
    1,883Provision for income tax expense
    
    
    236
    
    
    
    378Net income
    
    
    1,565
    
    
    
    1,505Other comprehensive income (loss):Unrealized holding gains (losses) on investment
securities available-for-sale
    
    
    244
    
    
    
    (4
    )Income tax expense (benefit) related to other
comprehensive income (loss)
    
    
    83
    
    
    
    (1
    )Other comprehensive income (loss), net of
income taxes
    
    
    161
    
    
    
    (3
    )Comprehensive income
    
    $
    1,726
    
    
    $
    1,502Per share data:Net income
    
    $
    0.89
    
    
    $
    0.81Cash dividends declared
    
    $
    0.27
    
    
    $
    0.26Average common shares outstanding
    
    
    1,753,376
    
    
    
    1,851,518
  3




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##### 



Comm Bancorp, Inc.  CONSOLIDATED BALANCE SHEETS  (Dollars in thousands, except per share data)
 March 31,
    
    
    December 31,2008
    
    
    2007Assets:Cash and due from banks
    
    $
    12,870
    
    
    $
    13,125Federal funds sold
    
    
    
    
    
    
    8,751Investment securities available-for-sale
    
    
    37,915
    
    
    
    39,407Loans held-for-sale, net
    
    
    2,034
    
    
    
    1,248Loans, net of unearned income
    
    
    497,668
    
    
    
    471,344Less: allowance for loan losses
    
    
    4,934
    
    
    
    4,624Net loans
    
    
    492,734
    
    
    
    466,720Premises and equipment, net
    
    
    10,784
    
    
    
    10,891Accrued interest receivable
    
    
    2,710
    
    
    
    2,634Other assets
    
    
    6,561
    
    
    
    6,211Total assets
    
    $
    565,608
    
    
    $
    548,987Liabilities:Deposits:Noninterest-bearing
    
    $
    74,499
    
    
    $
    75,232Interest-bearing
    
    
    413,540
    
    
    
    416,125Total deposits
    
    
    488,039
    
    
    
    491,357Short-term borrowings
    
    
    18,100Accrued interest payable
    
    
    1,423
    
    
    
    1,308Other liabilities
    
    
    2,468
    
    
    
    1,949Total liabilities
    
    
    510,030
    
    
    
    494,614Stockholders equity:Common stock, par value $0.33, authorized 12,000,000
shares, issued and outstanding:March 31, 2008, 1,752,457 shares; December 31, 2007,
1,753,622 shares
    
    
    578
    
    
    
    579Capital surplus
    
    
    7,440
    
    
    
    7,326Retained earnings
    
    
    46,284
    
    
    
    45,353Accumulated other comprehensive income
    
    
    1,276
    
    
    
    1,115Total stockholders equity
    
    
    55,578
    
    
    
    54,373Total liabilities and stockholders equity
    
    $
    565,608
    
    
    $
    548,987
  4




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##### 



Comm Bancorp, Inc.  CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY  (Dollars in thousands, except per share data)
 AccumulatedOther
    
    
    TotalCommon
    
    
    Capital
    
    
    Retained
    
    
    Comprehensive
    
    
    StockholdersStock
    
    
    Surplus
    
    
    Earnings
    
    
    Income
    
    
    EquityBalance, December 31, 2007
    
    $
    579
    
    
    $
    7,326
    
    
    $
    45,353
    
    
    $
    1,115
    
    
    $
    54,373Net income
    
    
    
    
    
    
    
    
    
    
    1,565
    
    
    
    
    
    
    
    1,565Dividends declared: $0.27
per share
    
    
    
    
    
    
    
    
    
    
    (473
    )
    
    
    
    
    
    
    (473
    )Dividend reinvestment
plan: 2,621 shares issued
    
    
    1
    
    
    
    125
    
    
    
    
    
    
    
    
    
    
    
    126Repurchase and
retirement: 3,786 shares
    
    
    (2
    )
    
    
    (11
    )
    
    
    (161
    )
    
    
    
    
    
    
    (174
    )Other comprehensive
income, net of income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    161
    
    
    
    161Balance, March 31, 2008
    
    $
    578
    
    
    $
    7,440
    
    
    $
    46,284
    
    
    $
    1,276
    
    
    $
    55,578Balance, December 31, 2006
    
    $
    610
    
    
    $
    7,146
    
    
    $
    45,405
    
    
    $
    957
    
    
    $
    54,118Net income
    
    
    
    
    
    
    
    
    
    
    1,505
    
    
    
    
    
    
    
    1,505Dividends declared: $0.26
per share
    
    
    
    
    
    
    
    
    
    
    (481
    )
    
    
    
    
    
    
    (481
    )Dividend reinvestment
plan: 2,831 shares issued
    
    
    1
    
    
    
    120
    
    
    
    
    
    
    
    
    
    
    
    121Other comprehensive loss,
net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3
    )
    
    
    (3
    )Balance, March 31, 2007
    
    $
    611
    
    
    $
    7,266
    
    
    $
    46,429
    
    
    $
    954
    
    
    $
    55,260
  5




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##### 



Comm Bancorp, Inc.  CONSOLIDATED STATEMENTS OF CASH FLOWS  (Dollars in thousands, except per share data)
 For the Three Months Ended March 31
    
    2008
    
    
    2007Cash flows from operating activities:Net income
    
    $
    1,565
    
    
    $
    1,505Adjustments to reconcile net income to net cash provided by
operating activities:Provision for loan losses
    
    
    330
    
    
    
    225Depreciation and amortization of premises and equipment
    
    
    237
    
    
    
    272Net amortization (accretion) of investment securities
    
    
    24
    
    
    
    (41
    )Amortization of net loan costs
    
    
    98
    
    
    
    91Amortization of mortgage servicing rights
    
    
    58
    
    
    
    32Deferred income tax expense (benefit)
    
    
    174
    
    
    
    (59
    )Net gains on sale of loans
    
    
    (141
    )
    
    
    (43
    )Losses on foreclosed assets
    
    
    6Changes in:Loans held for sale, net
    
    
    (645
    )
    
    
    (1,352
    )Accrued interest receivable
    
    
    (76
    )
    
    
    (162
    )Other assets
    
    
    (662
    )
    
    
    (299
    )Accrued interest payable
    
    
    115
    
    
    
    105Other liabilities
    
    
    420
    
    
    
    283Net cash provided by operating activities
    
    
    1,503
    
    
    
    557Cash flows from investing activities:Proceeds from repayments of investment securities
available-for-sale
    
    
    3,084
    
    
    
    18,039Purchases of investment securities available-for-sale
    
    
    (1,372
    )
    
    
    (10,401
    )Proceeds from sale of foreclosed assets
    
    
    74Net increase in lending activities
    
    
    (26,442
    )
    
    
    (44,015
    )Purchases of premises and equipment
    
    
    (130
    )
    
    
    (85
    )Net cash used in investing activities
    
    
    (24,786
    )
    
    
    (36,462
    )Cash flows from financing activities:Net changes in:Money market, NOW, savings and noninterest-bearing
accounts
    
    
    (15,372
    )
    
    
    (6,408
    )Time deposits
    
    
    12,054
    
    
    
    8,646Short-term borrowings
    
    
    18,100
    
    
    
    17,100Proceeds from the issuance of common shares
    
    
    126
    
    
    
    121Repurchase and retirement of common shares
    
    
    (174
    )Cash dividends paid
    
    
    (457
    )
    
    
    (463
    )Net cash provided by financing activities
    
    
    14,277
    
    
    
    18,996Net decrease in cash and cash equivalents
    
    
    (9,006
    )
    
    
    (16,909
    )Cash and cash equivalents at beginning of year
    
    
    21,876
    
    
    
    27,634Cash and cash equivalents at end of period
    
    $
    12,870
    
    
    $
    10,725Supplemental disclosures:Cash paid during the period for:Interest
    
    $
    3,283
    
    
    $
    3,473Income taxes
    
    
    420Noncash items:Unrealized losses (gains) on investment securities
available-for-sale, net
    
    $
    (161
    )
    
    $
    3
  6




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##### 



Comm Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 1. Basis of presentation:
   2. Earnings per common share:
  3. Fair values of financial instruments:
   7




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##### 



Comm Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Dollars in thousands, except per share data)
 
    
    Level 1: Unadjusted quoted prices or identical assets or
liabilities in active markets that the entity has the ability to
access as of the measurement date.
    
    Level 2: Significant other observable inputs other than Level 1
prices such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other inputs
that are observable or can be corroborated by observable market
data.
    
    Level 3: Significant unobservable inputs that reflect a reporting
entitys own assumptions about the assumptions that market
participants would use in pricing an asset or liability.
  Fair Value Measurements UsingQuoted Prices inActive Markets for
    
    Significant Other
    
    SignificantIdentical Assets
    
    Observable Inputs
    
    Unobservable InputsMarch 31, 2008
    
    Amount
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Investment securities
available-for-sale.
    
    $
    37,915
    
    
    
    
    
    
    $
    37,915
   Fair Value Measurements UsingQuoted Prices inActive Markets for
    
    Significant Other
    
    SignificantIdentical Assets
    
    Observable Inputs
    
    Unobservable InputsMarch 31, 2008
    
    Amount
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Impaired loans
    
    $
    9,539
    
    
    
    
    
    
    
    
    
    
    $
    9,539Foreclosed assets
    
    $
    45
    
    
    
    
    
    
    
    
    
    
    $
    45
   8




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##### 



Comm Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Dollars in thousands, except per share data)
 4. Disclosures about Derivative Instruments and Hedging Activities:
  9




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS
(Dollars in thousands, except per share data)
 Forward-Looking Discussion:
      10




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Critical Accounting Policies:
     11




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
       12




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Operating Environment:
  Review of Financial Position:
  K
 13




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Investment Portfolio:
   Distribution of investment securities available-for-sale
 March 31,
    
    
    December 31,2008
    
    
    2007Amount
    
    
    %
    
    
    Amount
    
    
    %State and municipals:Taxable
    
    $
    3,638
    
    
    
    9.60
    %
    
    $
    5,227
    
    
    
    13.26
    %Tax-exempt
    
    
    31,009
    
    
    
    81.79
    
    
    
    30,897
    
    
    
    78.41Mortgage-backed securities
    
    
    1,411
    
    
    
    3.72
    
    
    
    1,904
    
    
    
    4.83Equity securities:Restricted
    
    
    1,596
    
    
    
    4.21
    
    
    
    1,128
    
    
    
    2.86Other
    
    
    261
    
    
    
    0.68
    
    
    
    251
    
    
    
    0.64Total
    
    $
    37,915
    
    
    
    100.00
    %
    
    $
    39,407
    
    
    
    100.00
    %
  14




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Maturity distribution of available-for-sale portfolio
 After one
    
    
    After fiveWithin
    
    
    but within
    
    
    but within
    
    
    Afterone year
    
    
    five years
    
    
    ten years
    
    
    ten years
    
    
    TotalMarch 31, 2008
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    YieldAmortized cost:State and municipals:Taxable
    
    $
    3,644
    
    
    
    2.74
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    3,644
    
    
    
    2.74
    %Tax-exempt
    
    
    675
    
    
    
    5.84
    
    
    $
    6,235
    
    
    
    7.85
    %
    
    $
    20,368
    
    
    
    7.50
    %
    
    $
    1,937
    
    
    
    7.45
    %
    
    
    29,215
    
    
    
    7.53Mortgage-backed securities
    
    
    545
    
    
    
    5.01
    
    
    
    799
    
    
    
    5.02
    
    
    
    45
    
    
    
    6.65
    
    
    
    
    
    
    
    
    
    
    
    1,389
    
    
    
    5.07Equity securities:Restricted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,596
    
    
    
    2.46
    
    
    
    1,596
    
    
    
    2.46Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    138
    
    
    
    5.28
    
    
    
    138
    
    
    
    5.28Total
    
    $
    4,864
    
    
    
    3.42
    %
    
    $
    7,034
    
    
    
    7.53
    %
    
    $
    20,413
    
    
    
    7.50
    %
    
    $
    3,671
    
    
    
    5.20
    %
    
    $
    35,982
    
    
    
    6.72
    %Fair value:State and municipals:Taxable
    
    $
    3,638
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    3,638Tax-exempt
    
    
    687
    
    
    
    
    
    
    $
    6,542
    
    
    
    
    
    
    $
    21,704
    
    
    
    
    
    
    $
    2,076
    
    
    
    
    
    
    
    31,009Mortgage-backed securities
    
    
    554
    
    
    
    
    
    
    
    811
    
    
    
    
    
    
    
    46
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,411Equity securities:Restricted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,596
    
    
    
    
    
    
    
    1,596Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    261
    
    
    
    
    
    
    
    261Total
    
    $
    4,879
    
    
    
    
    
    
    $
    7,353
    
    
    
    
    
    
    $
    21,750
    
    
    
    
    
    
    $
    3,933
    
    
    
    
    
    
    $
    37,915
 Loan Portfolio:
  15




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
     16




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
   Distribution of loan portfolio
 March 31,
    
    
    December 31,2008
    
    
    2007Amount
    
    
    %
    
    
    Amount
    
    
    %Commercial, financial and others
    
    $
    207,113
    
    
    
    41.62
    %
    
    $
    187,147
    
    
    
    39.70
    %Real estate:Construction
    
    
    11,383
    
    
    
    2.29
    
    
    
    12,810
    
    
    
    2.72Mortgage
    
    
    242,087
    
    
    
    48.64
    
    
    
    233,755
    
    
    
    49.59Consumer, net
    
    
    34,364
    
    
    
    6.91
    
    
    
    35,149
    
    
    
    7.46Lease financing, net
    
    
    2,721
    
    
    
    0.54
    
    
    
    2,483
    
    
    
    0.53Loans, net of unearned income
    
    
    497,668
    
    
    
    100.00
    %
    
    
    471,344
    
    
    
    100.00
    %Less: allowance for loan losses
    
    
    4,934
    
    
    
    
    
    
    
    4,624Net loans
    
    $
    492,734
    
    
    
    
    
    
    $
    466,720
  17




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
  Maturity distribution and interest sensitivity of loan portfolio
 After oneWithin
    
    
    but within
    
    
    AfterMarch 31, 2008
    
    one year
    
    
    five years
    
    
    five years
    
    
    TotalMaturity schedule:Commercial, financial and others
    
    $
    102,243
    
    
    $
    48,976
    
    
    $
    55,894
    
    
    $
    207,113Real estate:Construction
    
    
    11,383
    
    
    
    
    
    
    
    
    
    
    
    11,383Mortgage
    
    
    27,725
    
    
    
    93,722
    
    
    
    120,640
    
    
    
    242,087Consumer, net
    
    
    4,824
    
    
    
    23,254
    
    
    
    6,286
    
    
    
    34,364Lease financing, net
    
    
    545
    
    
    
    2,176
    
    
    
    
    
    
    
    2,721Total
    
    $
    146,720
    
    
    $
    168,128
    
    
    $
    182,820
    
    
    $
    497,668Sensitivity schedule:Predetermined interest rates
    
    $
    74,000
    
    
    $
    95,375
    
    
    $
    79,348
    
    
    $
    248,723Floating or adjustable interest
rates
    
    
    72,720
    
    
    
    72,753
    
    
    
    103,472
    
    
    
    248,945Total
    
    $
    146,720
    
    
    $
    168,128
    
    
    $
    182,820
    
    
    $
    497,668
    18




---



##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
    Distribution of off-balance sheet commitments
 March 31,
    
    
    December 31,2008
    
    
    2007Commitments to extend credit
    
    $
    75,285
    
    
    $
    80,675Unused portions of lines of credit
    
    
    18,692
    
    
    
    17,901Commercial letters of credit
    
    
    19,575
    
    
    
    19,634Total
    
    $
    113,552
    
    
    $
    118,210
  Asset Quality:
  19




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
    Distribution of nonperforming assets
 March 31,
    
    
    December 31,2008
    
    
    2007Nonaccrual loans:Commercial, financial and others
    
    $
    2,363
    
    
    $
    2,444Real estate:ConstructionMortgage
    
    
    5,953
    
    
    
    2,812Consumer, net
    
    
    57
    
    
    
    77Lease financing, netTotal nonaccrual loans
    
    
    8,373
    
    
    
    5,333Accruing loans past due 90 days or more:Commercial, financial and others
    
    
    129
    
    
    
    1,837Real estate:ConstructionMortgage
    
    
    593
    
    
    
    295Consumer, net
    
    
    86
    
    
    
    85Lease financing, net
    
    
    32
    
    
    
    17Total accruing loans past due 90 days or more
    
    
    840
    
    
    
    2,234Total nonperforming loans
    
    
    9,213
    
    
    
    7,567Foreclosed assets
    
    
    45
    
    
    
    125Total nonperforming assets
    
    $
    9,258
    
    
    $
    7,692Ratios:Nonperforming loans as a percentage of loans, net
    
    
    1.85
    %
    
    
    1.61
    %Nonperforming assets as a percentage of loans, net, and
foreclosed assets
    
    
    1.86
    %
    
    
    1.63
    %
 20




---



##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
   21




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
  Distribution of impaired loans
 March 31,
    
    
    December 31,2008
    
    
    2007Nonaccrual loans:Commercial, financial and others
    
    $
    2,363
    
    
    $
    2,444Real estate:ConstructionMortgage
    
    
    5,953
    
    
    
    2,812Consumer, net
    
    
    57
    
    
    
    77Lease financing, netTotal nonaccrual loans
    
    
    8,373
    
    
    
    5,333Accruing loans:Commercial, financial and others
    
    
    12,931
    
    
    
    2,338Real estate:ConstructionMortgage
    
    
    9,105
    
    
    
    7,247Consumer, netLease financing, netTotal accruing loans
    
    
    22,036
    
    
    
    9,585Total impaired loans
    
    $
    30,409
    
    
    $
    14,918Ratio:Impaired loans as a percentage of loans, net
    
    
    6.11
    %
    
    
    3.16
    %
  22




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
  March 31, 2008
    
    
    December 31, 2007Recorded
    
    
    Related
    
    
    Recorded
    
    
    RelatedInvestment
    
    
    Allowance
    
    
    Investment
    
    
    AllowanceImpaired loans:With a related allowance
    
    $
    12,733
    
    
    $
    3,194
    
    
    $
    7,575
    
    
    $
    3,216With no related allowance
    
    
    17,676
    
    
    
    
    
    
    
    7,343Total
    
    $
    30,409
    
    
    $
    3,194
    
    
    $
    14,918
    
    
    $
    3,216
  Three Months Ended March 31
    
    2008
    
    
    2007Gross interest due under terms
    
    $
    563
    
    
    $
    203Interest income recognized
    
    
    478
    
    
    
    212Interest income not recognized (recognized in excess of due)
    
    $
    85
    
    
    $
    (9
    )Interest income recognized (cash-basis)
    
    $
    478
    
    
    $
    212Average recorded investment in impaired loans
    
    $
    30,200
    
    
    $
    10,771
  23




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Allocation of the allowance for loan losses
 March 31,
    
    
    December 31,2008
    
    
    2007Category
    
    
    
    
    
    
    Categoryas a
    
    
    
    
    
    
    as a% of
    
    
    
    
    
    
    % ofAmount
    
    
    loans
    
    
    Amount
    
    
    loansAllocated allowance:Specific:Commercial, financial and others
    
    $
    1,808
    
    
    
    3.07
    %
    
    $
    2,216
    
    
    
    1.01
    %Real estate:ConstructionMortgage
    
    
    1,329
    
    
    
    3.03
    
    
    
    923
    
    
    
    2.13Consumer, net
    
    
    57
    
    
    
    0.01
    
    
    
    77
    
    
    
    0.02Lease financing, netTotal specific
    
    
    3,194
    
    
    
    6.11
    
    
    
    3,216
    
    
    
    3.16Formula:Commercial, financial and others
    
    
    201
    
    
    
    38.55
    
    
    
    247
    
    
    
    38.69Real estate:Construction
    
    
    
    
    
    
    2.29
    
    
    
    
    
    
    
    2.72Mortgage
    
    
    521
    
    
    
    45.61
    
    
    
    226
    
    
    
    47.46Consumer, net
    
    
    369
    
    
    
    6.90
    
    
    
    344
    
    
    
    7.44Lease financing, net
    
    
    1
    
    
    
    0.54
    
    
    
    
    
    
    
    0.53Total formula
    
    
    1,092
    
    
    
    93.89
    
    
    
    817
    
    
    
    96.84Total allocated allowance
    
    
    4,286
    
    
    
    100.00
    %
    
    
    4,033
    
    
    
    100.00
    %Unallocated allowance
    
    
    648
    
    
    
    
    
    
    
    591Total allowance for loan losses
    
    $
    4,934
    
    
    
    
    
    
    $
    4,624
  24




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
   Reconciliation of allowance for loan losses
 March 31,2008Allowance for loan losses at beginning of period
    
    $
    4,624Loans charged-off:Commercial, financial and others
    
    
    15Real estate:ConstructionMortgageConsumer, net
    
    
    31Lease financing, netTotal
    
    
    46Loans recovered:Commercial, financial and others
    
    
    3Real estate:ConstructionMortgage
    
    
    1Consumer, net
    
    
    22Lease financing, netTotal
    
    
    26Net loans charged-off
    
    
    20Provision charged to operating expense
    
    
    330Allowance for loan losses at end of period
    
    $
    4,934Ratios:Net loans charged-off as a percentage of average loans outstanding
    
    
    0.01
    %Allowance for loan losses as a percentage of period end loans
    
    
    0.99
    %
  25




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Deposits:
  26




---



##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Deposit distribution
 March 31,
    
    
    March 31,2008
    
    
    2007Average
    
    
    Average
    
    
    Average
    
    
    AverageBalance
    
    
    Rate
    
    
    Balance
    
    
    RateInterest-bearing:Money market accounts
    
    $
    28,650
    
    
    
    2.23
    %
    
    $
    29,314
    
    
    
    3.00
    %NOW accounts
    
    
    71,707
    
    
    
    2.89
    
    
    
    64,371
    
    
    
    3.15Savings accounts
    
    
    98,602
    
    
    
    1.24
    
    
    
    99,502
    
    
    
    1.40Time deposits less than $100
    
    
    167,407
    
    
    
    4.29
    
    
    
    178,635
    
    
    
    4.37Time deposits $100 or more
    
    
    44,561
    
    
    
    4.57
    
    
    
    38,102
    
    
    
    4.78Total interest-bearing
    
    
    410,927
    
    
    
    3.20
    %
    
    
    409,924
    
    
    
    3.40
    %Noninterest-bearing
    
    
    72,666
    
    
    
    
    
    
    
    71,670Total deposits
    
    $
    483,593
    
    
    
    
    
    
    $
    481,594
  .
 27




---



##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Maturity distribution of time deposits of $100 or more
 March 31,
    
    
    December 31,2008
    
    
    2007Within three months
    
    $
    14,476
    
    
    $
    11,336After three months but within six months
    
    
    12,967
    
    
    
    8,040After six months but within twelve months
    
    
    8,933
    
    
    
    12,702After twelve months
    
    
    12,085
    
    
    
    11,148Total
    
    $
    48,461
    
    
    $
    43,226
 Market Risk Sensitivity:
   28




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
   29




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
  Interest rate sensitivity
 Due after
    
    
    Due afterthree months
    
    
    one yearDue within
    
    
    but within
    
    
    but within
    
    
    Due afterMarch 31, 2008
    
    three months
    
    
    twelve months
    
    
    five years
    
    
    five years
    
    
    TotalRate sensitive
assets:Investment
securities
    
    $
    3,773
    
    
    $
    1,106
    
    
    $
    7,353
    
    
    $
    25,683
    
    
    $
    37,915Loans held for
sale, net
    
    
    2,034
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,034Loans, net of
unearned income
    
    
    131,197
    
    
    
    93,917
    
    
    
    187,982
    
    
    
    84,572
    
    
    
    497,668Total
    
    $
    137,004
    
    
    $
    95,023
    
    
    $
    195,335
    
    
    $
    110,255
    
    
    $
    537,617Rate sensitive
liabilities:Money market
accounts
    
    $
    19,838
    
    
    $
    6,574
    
    
    
    
    
    
    
    
    
    
    $
    26,412NOW accounts
    
    
    54,212
    
    
    
    14,456
    
    
    
    
    
    
    
    
    
    
    
    68,668Savings accounts
    
    
    14,979
    
    
    
    
    
    
    $
    84,946
    
    
    
    
    
    
    
    99,925Time deposits less
than $100
    
    
    45,345
    
    
    
    47,503
    
    
    
    66,008
    
    
    $
    11,219
    
    
    
    170,075Time deposits $100
or more
    
    
    14,476
    
    
    
    21,900
    
    
    
    9,872
    
    
    
    2,213
    
    
    
    48,461Short-term
borrowings
    
    
    18,100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,100Total
    
    $
    166,950
    
    
    $
    90,433
    
    
    $
    160,826
    
    
    $
    13,432
    
    
    $
    431,641Rate sensitivity
gap:Period
    
    $
    (29,946
    )
    
    $
    4,590
    
    
    $
    34,509
    
    
    $
    96,823Cumulative
    
    $
    (29,946
    )
    
    $
    (25,356
    )
    
    $
    9,153
    
    
    $
    105,976
    
    
    $
    105,976RSA/RSL ratio:Period
    
    


    0.82
    
    
    
    1.05
    
    
    
    1.21
    
    
    
    8.21Cumulative
    
    
    0.82
    
    
    
    0.90
    
    
    
    1.02
    
    
    
    1.25
    
    
    
    1.25
  30




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
     31




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
   Liquidity:
  
    
    Funding new and existing loan commitments;
    
    Payment of deposits on demand or at their contractual maturity;
    
    Repayment of borrowings as they mature;
    
    Payment of lease obligations; and
    
    Payment of operating expenses.
  32




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
      33




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
 Capital Adequacy:
     34




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
   Regulatory capital
 Minimum to be WellCapitalized underMinimum for Capital
    
    
    Prompt CorrectiveActual
    
    
    Adequacy Purposes
    
    
    Action ProvisionsMarch 31
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Basis for ratios:Tier I capital to
risk-weighted assets:Consolidated
    
    $
    53,897
    
    
    $
    53,894
    
    
    $
    19,925
    
    
    $
    18,539Community Bank
    
    
    48,859
    
    
    
    52,006
    
    
    
    19,781
    
    
    
    18,510
    
    
    $
    29,671
    
    
    $
    27,765Total capital to
risk-weighted assets:Consolidated
    
    
    58,831
    
    
    
    58,529
    
    
    
    39,851
    
    
    
    37,078Community Bank
    
    
    53,793
    
    
    
    56,641
    
    
    
    39,562
    
    
    
    37,021
    
    
    
    49,452
    
    
    
    46,276Tier I capital to total
average assets
less intangibles assets:Consolidated
    
    
    53,897
    
    
    
    53,894
    
    
    
    22,317
    
    
    
    21,977Community Bank
    
    
    48,859
    
    
    
    52,006
    
    
    $
    22,163
    
    
    $
    21,940
    
    
    $
    27,704
    
    
    $
    27,425Risk-weighted assets:Consolidated
    
    
    484,269
    
    
    
    450,157Community Bank
    
    
    480,653
    
    
    
    449,434Risk-weighted
off-balance sheet
items:Consolidated
    
    
    13,866
    
    
    
    13,323Community Bank
    
    
    13,866
    
    
    
    13,323Average assets for
Leverage ratio:Consolidated
    
    
    557,927
    
    
    
    549,421Community Bank
    
    $
    554,076
    
    
    $
    548,496Ratios:Tier I capital as a
percentage of risk-
weighted assets and
off-balance sheet
items:Consolidated
    
    
    10.8
    %
    
    
    11.6
    %
    
    
    4.0
    %
    
    
    4.0
    %Community Bank
    
    
    9.9
    
    
    
    11.2
    
    
    
    4.0
    
    
    
    4.0
    
    
    
    6.0
    %
    
    
    6.0
    %Total of Tier I and
Tier II capital as a
percentage of
risk-weighted assets
and
off-balance sheet items:Consolidated
    
    
    11.8
    
    
    
    12.6
    
    
    
    8.0
    
    
    
    8.0Community Bank
    
    
    10.9
    
    
    
    12.2
    
    
    
    8.0
    
    
    
    8.0
    
    
    
    10.0
    
    
    
    10.0Tier I capital as a
percentage of total
average assets less
intangibles assets:Consolidated
    
    
    9.7
    
    
    
    9.8
    
    
    
    4.0
    
    
    
    4.0Community Bank
    
    
    8.8
    %
    
    
    9.5
    %
    
    
    4.0
    %
    
    
    4.0
    %
    
    
    5.0
    %
    
    
    5.0
    %
 35




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
  Review of Financial Performance:
  Net Interest Income:
  
    
    Variations in the volume, rate and composition of earning assets and interest-bearing
liabilities;
    
    Changes in general market rates; and
    
    The level of nonperforming assets.
  36




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
   Net interest income changes due to rate and volume
 March 31,2008 vs. 2007Increase (decrease)attributable toTotalChange
    
    
    Rate
    
    
    VolumeInterest income:Loans:Taxable
    
    $
    267
    
    
    $
    (441
    )
    
    $
    708Tax-exempt
    
    
    259
    
    
    
    60
    
    
    
    199Investments:Taxable
    
    
    (529
    )
    
    
    (137
    )
    
    
    (392
    )Tax-exempt
    
    
    (11
    )
    
    
    (3
    )
    
    
    (8
    )Federal funds sold
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Total interest income
    
    
    (15
    )
    
    
    (521
    )
    
    
    506Interest expense:Money market accounts
    
    
    (58
    )
    
    
    (53
    )
    
    
    (5
    )NOW accounts
    
    
    15
    
    
    
    (39
    )
    
    
    54Savings accounts
    
    
    (40
    )
    
    
    (37
    )
    
    
    (3
    )Time deposits less than $100
    
    
    (138
    )
    
    
    (18
    )
    
    
    (120
    )Time deposits $100 or more
    
    
    57
    
    
    
    (17
    )
    
    
    74Short-term borrowings
    
    
    (16
    )
    
    
    (72
    )
    
    
    56Total interest expense
    
    
    (180
    )
    
    
    (236
    )
    
    
    56Net interest income
    
    $
    165
    
    
    $
    (285
    )
    
    $
    450
 37




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
     38




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
   39




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##### 



Comm Bancorp, Inc.
MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)
Dollars in thousands, except per share data
  Summary of net interest income
 March 31, 2008
    
    
    March 31, 2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Income/
    
    
    Interest
    
    
    Average
    
    
    Income/
    
    
    InterestBalance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateASSETS:Earning assets:Loans:Taxable
    
    $
    442,334
    
    
    $
    7,568
    
    
    
    6.88
    %
    
    $
    401,864
    
    
    $
    7,301
    
    
    
    7.37
    %Tax-exempt
    
    
    51,601
    
    
    
    865
    
    
    
    6.74
    
    
    
    39,463
    
    
    
    606
    
    
    
    6.23Investments:Taxable
    
    
    7,423
    
    
    
    55
    
    
    
    2.98
    
    
    
    54,897
    
    
    
    584
    
    
    
    4.31Tax-exempt
    
    
    29,270
    
    
    
    551
    
    
    
    7.57
    
    
    
    29,701
    
    
    
    562
    
    
    
    7.67Federal funds sold
    
    
    247
    
    
    
    2
    
    
    
    3.26
    
    
    
    251
    
    
    
    3
    
    
    
    4.85Total earning assets
    
    
    530,875
    
    
    
    9,041
    
    
    
    6.85
    %
    
    
    526,176
    
    
    
    9,056
    
    
    
    6.98
    %Less: allowance for loan losses
    
    
    4,777
    
    
    
    
    
    
    
    
    
    
    
    4,560Other assets
    
    
    32,234
    
    
    
    
    
    
    
    
    
    
    
    28,217Total assets
    
    $
    558,332
    
    
    
    
    
    
    
    
    
    
    $
    549,833LIABILITIES AND STOCKHOLDERS EQUITY:Interest-bearing liabilities:Money market accounts
    
    $
    28,650
    
    
    
    159
    
    
    
    2.23
    %
    
    $
    29,314
    
    
    
    217
    
    
    
    3.00
    %NOW accounts
    
    
    71,707
    
    
    
    515
    
    
    
    2.89
    
    
    
    64,371
    
    
    
    500
    
    
    
    3.15Savings accounts
    
    
    98,602
    
    
    
    304
    
    
    
    1.24
    
    
    
    99,502
    
    
    
    344
    
    
    
    1.40Time deposits less than $100
    
    
    167,407
    
    
    
    1,786
    
    
    
    4.29
    
    
    
    178,635
    
    
    
    1,924
    
    
    
    4.37Time deposits $100 or more
    
    
    44,561
    
    
    
    506
    
    
    
    4.57
    
    
    
    38,102
    
    
    
    449
    
    
    
    4.78Short-term borrowings
    
    
    16,085
    
    
    
    128
    
    
    
    3.20
    
    
    
    10,684
    
    
    
    144
    
    
    
    5.47Total interest-bearing liabilities
    
    
    427,012
    
    
    
    3,398
    
    
    
    3.20
    %
    
    
    420,608
    
    
    
    3,578
    
    
    
    3.45
    %Noninterest-bearing deposits
    
    
    72,666
    
    
    
    
    
    
    
    
    
    
    
    71,670Other liabilities
    
    
    3,353
    
    
    
    
    
    
    
    
    
    
    
    2,644Stockholders equity
    
    
    55,301
    
    
    
    
    
    
    
    
    
    
    
    54,911Total liabilities and stockholders equity
    
    $
    558,332
    
    
    
    
    
    
    
    
    
    
    $
    549,833Net interest income/spread
    
    
    
    
    
    $
    5,643
    
    
    
    3.65
    %
    
    
    
    
    
    $
    5,478
    
    
    
    3.53
    %Net interest margin
    
    
    
    
    
    
    
    
    
    
    4.28
    %
    
    
    
    
    
    
    
    
    
    
    4.22
    %Tax equivalent adjustments:Loans
    
    
    
    
    
    $
    294
    
    
    
    
    
    
    
    
    
    
    $
    206Investments
    
    
    
    
    
    
    187
    
    
    
    
    
    
    
    
    
    
    
    191Total adjustments
    
    
    
    
    
    $
    481
    
    
    
    
    
    
    
    
    
    
    $
    397
 
 Note:
    
    Average balances were calculated using average daily balances. Average balances for
loans include nonaccrual loans. Available-for-sale securities, included in investment
securities, are stated at amortized cost with the related average unrealized holding gains of
$1,999 and $1,424 for the first quarter of 2008 and 2007 included in other assets.
Tax-equivalent adjustments were calculated using the prevailing statutory tax rate of 34.0
percent.
 40




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
 Provision for Loan Losses:
  Noninterest Income:
  Noninterest Expense:
   41




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
   Noninterest expenses
 Three Months EndedMarch 31,2008
    
    
    2007Salaries and employee benefits expense:Salaries and payroll taxes
    
    $
    1,671
    
    
    $
    1,484Employee benefits
    
    
    459
    
    
    
    395Salaries and employee benefits expense
    
    
    2,130
    
    
    
    1,879Net occupancy and equipment expense:Net occupancy expense
    
    
    330
    
    
    
    321Equipment expense
    
    
    308
    
    
    
    313Net occupancy and equipment expense
    
    
    638
    
    
    
    634Other expenses:Marketing expense
    
    
    174
    
    
    
    159Other taxes
    
    
    124
    
    
    
    134Stationery and supplies
    
    
    72
    
    
    
    111Contractual services
    
    
    431
    
    
    
    453Insurance including FDIC assessment
    
    
    80
    
    
    
    51Other
    
    
    350
    
    
    
    332Other expenses
    
    
    1,231
    
    
    
    1,240Total noninterest expense
    
    $
    3,999
    
    
    $
    3,753
   42




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##### 



Comm Bancorp, Inc.  MANAGEMENTS DISCUSSION AND ANALYSIS (CONTINUED)  Dollars in thousands, except per share data
    Income Taxes:
   43




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##### 



Comm Bancorp, Inc.  CONTROLS AND PROCEDURES
 Evaluation of Controls and Procedures
  Internal Control Over Financial Reporting
  44




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##### 



Comm Bancorp, Inc.
OTHER INFORMATION
 Part II. Other Information
 Item 1. Legal Proceedings
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Number of
    
    
    Maximum NumberTotal Number
    
    
    Average
    
    
    Shares Purchased
    
    
    of Shares that mayof Shares
    
    
    Price Paid
    
    
    as Part of Publicly
    
    
    yet be PurchasedMonth Ending
    
    Purchased
    
    
    Per Share
    
    
    Announced Programs
    
    
    Under the ProgramsJanuary 31, 2008
    
    
    2,600
    
    
    $
    46.88
    
    
    
    2,600
    
    
    
    24,874February 29, 2008
    
    
    1,186
    
    
    
    44.04
    
    
    
    1,186
    
    
    
    23,688March 31, 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,688Total
    
    
    3,786
    
    
    $
    45.99
    
    
    
    3,786
 Item 3. Defaults upon Senior Securities
  Item 4. Submission of Matters to a Vote of Security Holders
  Item 5. Other Information
  Item 6. Exhibits
 31(i)
    
    CEO and CFO certifications pursuant to Rule 13a-14(a)/15d-14(a).32
    
    CEO and CFO certifications pursuant to Section 1350.99(i)
    
    Charter of the Joint Compensation Committee of the Boards of
Directors of Comm Bancorp, Inc. and Community Bank and Trust Company.
 45




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##### 



COMM BANCORP, INC.
FORM 10-Q
 SIGNATURE PAGE
  Registrant, Comm Bancorp, Inc.Date: May 12, 2008
    /s/ William F. Farber, Sr.William F. Farber, Sr.President and Chief Executive Officer
Chairman of the Board/Director
(Principal Executive Officer)Date: May 12, 2008
    /s/ Scott A. SeasockScott A. SeasockExecutive Vice President and
Chief Financial Officer
(Principal Financial Officer)Date: May 12, 2008
    /s/ Stephanie A. WestingtonStephanie A. Westington, CPAVice President of Finance
(Principal Accounting Officer) 46




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##### 



EXHIBIT INDEX
 Item Number
    
    Description
    
    Page31(i)
    
    CEO and CFO Certifications Pursuant to Rule
13a-14(a)/15d-14(a)
    
    
    4832
    
    CEO and CFO Certifications Pursuant to Section 1350
    
    
    5299(i)
    
    Charter of the Joint Compensation Committee of the
Boards of Directors of Comm Bancorp, Inc. and
Community Bank and Trust Company
    
    
    54
 47