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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 þ
    
    Annual Report pursuant to Section 13 or 15 (d) of the Securities and Exchange Act of 1934
 for the fiscal year ended December 31, 2007.
 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 # 0-32605
 NEFFS BANCORP, INC.
  Pennsylvania
    
    23-2400383(State or other jurisdiction of
    
    (I.R.S. Employer Identificationincorporation or organization)
    
    Number)
 5629 Route 873, P.O. Box 10, Neffs, PA 18065-0010
  Registrants telephone number including area code: 610-767-3875
 None
 Common Stock, $1.00 par value
 o þ
 o þ
 þ o
 o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer   o
(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
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 (1)
    (1)




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PagePart 1.Item 1 Business
    
    
    1Item 1A Risk Factors
    
    
    7Item 1B Unresolved Staff Comments
    
    
    9Item 2 Properties
    
    
    9Item 3 Legal Proceedings
    
    
    9Item 4 Submission of Matters to a Vote of Security Holders
    
    
    9Part II.Item 5 Market for Registrants Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities
    
    
    10Item 6 Selected Financial Data
    
    
    12Item 7 Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    12Item 7A Quantitative and Qualitative Disclosures about
Market Risk
    
    
    12Item 8 Financial Statements and Supplementary Data
    
    
    13Item 9 Changes In and Disagreements with Accountants on
Accounting and Financial Disclosure
    
    
    13Item 9A Controls and Procedures
    
    
    13Item 9A(T) Controls and Procedures
    
    
    13Item 9B Other Information
    
    
    14Part III.Item 10 Directors, Executive Officers and Corporate Governance
    
    
    14Item 11 Executive Compensation
    
    
    14Item 12 Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters
    
    
    15Item 13 Certain Relationships and Related Transactions, and
Director Independence
    
    
    15Item 14 Principal Accountant Fees and Services
    
    
    15Part IV.Item 15 Exhibits and Financial Statement Schedules
    
    
    15




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Part I
 
 Item I. Business
 Forward-Looking Statements
    General
    1




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www.neffsnatl.com
 Service Area
  Retail and Commercial Banking Activities
     2




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Competitive Business Conditions/Competitive Position
       Supervision and Regulations
  The Corporation
  3




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The Bank
     4




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Recent Legislation
 USA Patriot Act.
  §
    
    To conduct enhanced scrutiny of account relationships to guard against money laundering
and report any suspicious transactions;§
    
    To ascertain the identity of the nominal and beneficial owners of and the source of
funds deposited into, each account as needed to guard against money laundering and report
any suspicious transactions;§
    
    To ascertain regarding any foreign bank, the shares of which are not publicly traded,
the identity of the owners of the foreign bank, and the nature and extent of the ownership
interest of each such owners; and§
    
    To ascertain whether any foreign bank provides correspondent accounts to other foreign
banks and if so, the identity of those foreign banks and related due diligence information.
  §
    
    The development of internal policies, procedures, and controls;§
    
    The designation of a compliance officer;§
    
    An ongoing employee training program; and§
    
    An independent audit function to test the programs.
  5




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Sarbanes-Oxley Act of 2002
   National Monetary Policy
   Effect of Inflation
  Environmental Laws
  6




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Item 1A. Risk Factors
 The Corporation is Subject to Interest Rate Risk
  The Corporations Profitability Depends Significantly on Economic Conditions in the Commonwealth of
Pennsylvania
  The Corporations Allowance for Loan Losses May be Insufficient
  7




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The Corporation Operates in a Highly Competitive Industry and Market Area
   The Corporation is Subject to Extensive Government Regulation and Supervision
  The Corporation May Not be Able to Attract and Retain Skilled People
  The Corporation is Subject to Environmental Liability Risk Associated with Lending Activities
  8




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The Corporation Continually Encounters Technological Change
  The Corporations ability to pay dividends depends primarily on dividends from its banking
subsidiary, which is subject to regulatory limits.
  
 Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
 Main Office
  1 2
 
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  9




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Part II.
 
 Item 5. Market For Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
   Sales PricesQuarter Ended:
    
    High
    
    LowMarch 31, 2007
    
    $
    256.00
    
    
    $
    256.00June 30, 2007
    
    
    262.00
    
    
    
    262.00September 30, 2007
    
    
    263.00
    
    
    
    263.00December 31, 2007
    
    
    263.00
    
    
    
    263.00March 31, 2006
    
    $
    245.00
    
    
    $
    245.00June 30, 2006
    
    
    253.00
    
    
    
    253.00September 30, 2006
    
    
    253.00
    
    
    
    253.00December 31, 2006
    
    
    256.00
    
    
    
    256.00
  Maximum numberTotal number of
    
    (or dollar value) ofshares purchased
    
    shares that mayas part of publicly
    
    yet be purchasedTotal number of
    
    Price paid per
    
    announced plans
    
    under the plans orPeriod
    
    shares purchased
    
    share
    
    or programs
    
    programsSeptember 18, 2007
    
    
    7,186
    
    
    $
    263.00
    
    
    
    N/A
    
    
    
    N/A
 Dividends and Dividend History
 th th
   10




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Shareholder Return Performance Graph
  
 Period EndingIndex
    
    12/31/02
    
    12/31/03
    
    12/31/04
    
    12/31/05
    
    12/31/06
    
    12/31/07Neffs Bancorp, Inc.
    
    
    100.00
    
    
    
    114.83
    
    
    
    121.83
    
    
    
    129.86
    
    
    
    135.45
    
    
    
    145.61NASDAQ Composite
    
    
    100.00
    
    
    
    150.01
    
    
    
    162.89
    
    
    
    165.13
    
    
    
    180.85
    
    
    
    198.60Neffs Bancorp 2006 Peer Group
    
    
    100.00
    
    
    
    122.52
    
    
    
    125.56
    
    
    
    132.55
    
    
    
    129.60
    
    
    
    133.95Neffs Bancorp 2007 Peer Group
    
    
    100.00
    
    
    
    112.96
    
    
    
    117.10
    
    
    
    123.24
    
    
    
    122.90
    
    
    
    106.73
   Source: SNL Financial LC Charlottesville. VA
@2008
    
    (434)977-1600
WWW.snl.com
 11




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Item 6. Selected Financial Data
  
 Item 7. Managements Discussion and Analysis of Financial Condition and
Results of Operations
  
 Item 7A. Quantitative and Qualitative Disclosures about Market Risk
     12




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2007
    
    2006Change in
    
    
    
    
    
    Change inNet Interest
    
    Percentage
    
    Net Interest
    
    Percentage(dollars in thousands)
    
    Income
    
    Change
    
    Income
    
    ChangePolicy Limit
    
    
    
    
    
    
    ±5.0
    %
    
    
    
    
    
    
    ±5.0
    %Down 200 basis points
    
    
    $(4
    )
    
    
    (0.1
    %)
    
    
    $(6
    )
    
    
    (0.1
    %)Down 100 basis points
    
    
    15
    
    
    
    0.2
    %
    
    
    19
    
    
    
    0.3
    %Up 100 basis points
    
    
    25
    
    
    
    0.4
    %
    
    
    2
    
    
    
    0.0
    %Up 200 basis points
    
    
    (19
    )
    
    
    (0.3
    %)
    
    
    (7
    )
    
    
    (0.1
    %)
 
 Item 8. Financial Statements and Supplementary Data
  
 Item 9. Changes In and Disagreements with Accountants on Accounting and
Financial Disclosure
  
 Item 9A. Controls and Procedures
 Disclosure Controls and Procedures
  Internal Controls Over Financial Reporting
  
 Item 9A(T). Controls and Procedures
 Report of Managements Assessment of Internal Control over Financial Reporting
  §
    
    maintain records that accurately reflect the companys transactions;§
    
    prepare financial statement and footnote disclosures in accordance with GAAP that can be
relied upon by external users;§
    
    prevent and detect unauthorized acquisition, use or disposition of the companys assets
that could have a material effect on the financial statements.
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Internal Control-Integrated Framework
    /s/ John J. Remaley

President & CEO
    
    
    
    /s/ Kevin A. Schmidt

Principle Financial Officer
 
 Item 9B. Other Information
  
 Part III.
 
 Item 10. Directors, Executive Officers and Corporate Governance
   14




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Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters.
   
 Item 13. Certain Relationships and Related Transactions, and Director Independence
  
 Item 14. Principal Accountant Fees and Services
  
 Part IV
 
 Item 15. Exhibits and Financial Statement Schedules
 No.
    
    
    
    
    
    Description(a)
    
    
    (1
    )
    
    Financial Statements are incorporated by reference from the 2007 Annual
Report.Report of Independent Registered Public Accounting FirmConsolidated Statements of Financial ConditionConsolidated Statements of IncomeConsolidated Statements of Stockholders EquityConsolidated Statements of Cash FlowsNotes to Consolidated Financial Statements(2
    )
    
    Financial Statements Schedules (This item is omitted since
information required is either not applicable or is included in the footnotes to
the Annual Financial Statements.)(3
    )
    
    The following exhibits are filed as part of this Form 10-K, and
this list includes the Exhibits Index.3
    (i)
    
    Amended and Restated Articles of Incorporation of Neffs Bancorp, Inc.
(Incorporated by reference to Exhibit 3(i) of the Registration Statement on Form
10 dated and as filed with Commission on April 27, 2001.)
 15




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No.
    
    
    
    
    
    Description3 (ii)
    
    Amended and Restated Bylaws of Neffs Bancorp, Inc. (Incorporated by reference to
Exhibit 99.1 of the Current Report on Form 8-K dated and as filed with the Commission on February 27, 2002.)11
    
    
    Statement re: computation of per share earnings. See Consolidated Statements
of Income and Note 1 to the Consolidated Financial Statements included in the
Annual Report set forth as Exhibit 13 hereto.13
    
    
    Excerpts from Neffs Bancorp, Inc. Annual Report to Stockholders.14
    
    
    Code of Ethics (incorporated by reference to Exhibit 14 to the Form 10-K of the
registrant filed on April 1, 2002.)21
    
    
    Subsidiary of the Registrant (incorporated by reference to Exhibit 21 to the
Form 10-K of the registrant filed on April 1, 2002.)31.1
    
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)31.2
    
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)32.1
    
    
    Certification of Chief Executive Officer pursuant to Section 1350 of the
Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification of Principal Financial Officer pursuant to Section 1350 of the
Sarbanes-Oxley Act of 2002.(b)
    
    
    
    
    
    Exhibits required by item 601 of Regulation SK.See Item 15(a) (3) above.
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Signatures
  Neffs Bancorp, Inc.Date:  March 31, 2008
    By:
    /s/ John J. RemaleyJohn J. RemaleyPresident and
Chief Executive Officer  Signatures
    
    Title
    
    Date/s/ John J. Remaley

John J. Remaley
    
    President, Chief Executive
Officer and Director
    
    March 31,
2008/s/Herman P. Snyder

Herman P. Snyder
    
    Vice President and Director
    
    March 31,
2008/s/Robert B. Heintzelman

Robert B. Heintzelman
    
    Director
    
    March 31,
2008/s/Mary Ann Wagner

Mary Ann Wagner
    
    Director
    
    March 31,
2008/s/John F. Simock

John F. Simock
    
    Director
    
    March 31,
2008/s/Kevin A. Schmidt

Kevin A. Schmidt
    
    Treasurer and Director
    
    March 31,
2008/s/John F. Sharkey, Jr.

John F. Sharkey, Jr.
    
    Director
    
    March 31,
2008/s/Duane A. Schleicher

Duane A. Schleicher
    
    Director
    
    March 31,
2008
 17