##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 MARK ONE
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005
 OR
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR
THE TRANSITION PERIOD FROM  TO
 Commission File Number 2-90200
 FIRST
MCMINNVILLE CORPORATION
  Tennessee
    
    62-1198119(State or Other Jurisdiction of
Incorporation or Organization)
    
    (IRS Employer Identification
Number)
 (Address of Principal Executive Offices and Zip Code)
 (Registrants Telephone Number, Including Area Code)
  þ o
  o þ
  o þ




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FIRST MCMINNVILLE CORPORATION
 FORM 10Q
 PART 1
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsThe unaudited consolidated financial statements of the registrant and its wholly-owned subsidiary,
First National Bank of McMinnville (Bank) and the Banks wholly-owned subsidiary, First Community
Title & Escrow Company are as follows:Consolidated Balance Sheets  September 30, 2005 and December 31, 2004.Consolidated Statements of Earnings  For the three months and nine months ended September 30, 2005
and 2004.Consolidated Statements of Comprehensive Earnings  For the three months and nine months ended
September 30, 2005 and 2004.Consolidated Statements of Cash Flows  For the nine months ended September 30, 2005 and 2004.Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of OperationItem 3.
    
    Quantitative and Qualitative Disclosures about Market Risk** Certain of the disclosures required by Item 3 are incorporated by
reference to Managements Discussion and Analysis of Financial Condition and
Results of Operations.Item 4.
    
    Controls and ProceduresPART II  OTHER INFORMATIONItem 1.
    
    Legal ProceedingsItem 2.
    
    Unregistered Sales of Equity Securities and Use of ProceedsItem 3.
    
    Defaults Upon Senior SecuritiesItem 4.
    
    Submission of Matters to a Vote of Security HoldersItem 5.
    
    Other InformationItem 6.
    
    ExhibitsSignaturesEX-31.1  SECTION 302 CEO CERTIFICATIONEX-31.2  SECTION 302 CFO CERTIFICATIONEX-32.1  SECTION 906 CEO CERTIFICATIONEX-32.2  SECTION 906 CFO CERTIFICATION
  2




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 
 Consolidated Balance Sheets
 September 30, 2005 and December 31, 2004
 (Unaudited)
 September 30,
    
    
    December 31,2005
    
    
    2004(In Thousands)AssetsLoans
    
    $
    142,090
    
    
    
    149,116Less: Allowance for loan losses
    
    
    (1,914
    )
    
    
    (1,816
    )Net loans
    
    
    140,176
    
    
    
    147,300Securities:Held to maturity, at cost (market value $60,668,000 and $58,547,000,
respectively)
    
    
    59,702
    
    
    
    57,126Available-for-sale, at market (amortized cost $91,570,000 and $88,796,000,
respectively)
    
    
    90,243
    
    
    
    88,199Restricted equity securities
    
    
    1,344
    
    
    
    1,303Federal funds sold
    
    
    9,100
    
    
    
    6,000Interest-bearing deposits in financial institutions
    
    
    45
    
    
    
    25Total earning assets
    
    
    300,610
    
    
    
    299,953Cash and due from banks
    
    
    5,628
    
    
    
    4,220Bank premises and equipment, net of accumulated depreciation
    
    
    1,878
    
    
    
    1,782Accrued interest receivable
    
    
    1,822
    
    
    
    1,713Deferred tax asset, net
    
    
    547
    
    
    
    267Other real estate
    
    
    133
    
    
    
    190Other assets
    
    
    477
    
    
    
    409Total assets
    
    $
    311,095
    
    
    
    308,534Liabilities and Stockholders EquityDeposits
    
    $
    235,625
    
    
    
    226,588Securities sold under repurchase agreements
    
    
    20,914
    
    
    
    28,633Advances from Federal Home Loan Bank
    
    
    1,000
    
    
    
    1,000Accrued interest and other liabilities
    
    
    1,562
    
    
    
    2,234Total liabilities
    
    
    259,101
    
    
    
    258,455Stockholders equity:Common stock, no par value; authorized 5,000,000 shares issued
1,235,652 shares and 1,233,922 shares, respectively
    
    
    3,796
    
    
    
    3,745Retained earnings
    
    
    53,878
    
    
    
    51,033Net unrealized losses on available-for-sale securities, net of income
taxes of $508,000 and $229,000, respectively
    
    
    (819
    )
    
    
    (369
    )56,855
    
    
    
    54,409Less cost of treasury stock of 203,700 shares and 193,062 shares,
respectively
    
    
    (4,861
    )
    
    
    (4,330
    )Total stockholders equity
    
    
    51,994
    
    
    
    50,079Total liabilities and stockholders equity
    
    $
    311,095
    
    
    
    308,534
  3




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 
 Consolidated Statements of Earnings
 Three Months and Nine Months Ended
September 30, 2005 and 2004
(Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Dollars In Thousands, Except Per Share Amount)Interest income:Interest and fees on loans
    
    $
    2,462
    
    
    
    2,441
    
    
    $
    7,300
    
    
    
    7,334Interest and dividends on securities:Taxable securities
    
    
    1,009
    
    
    
    894
    
    
    
    2,878
    
    
    
    2,595Exempt from Federal income taxes
    
    
    361
    
    
    
    395
    
    
    
    1,098
    
    
    
    1,184Interest on federal funds sold
    
    
    89
    
    
    
    43
    
    
    
    185
    
    
    
    106Interest on interest-bearing deposits in other banks and
other interest
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    Total interest income
    
    
    3,921
    
    
    
    3,773
    
    
    
    11,462
    
    
    
    11,219Interest expense:Interest on negotiable order of withdrawal accounts
    
    
    58
    
    
    
    56
    
    
    
    170
    
    
    
    162Interest on money market demand and savings accounts
    
    
    131
    
    
    
    89
    
    
    
    352
    
    
    
    266Interest on certificates of deposit
    
    
    1,089
    
    
    
    841
    
    
    
    2,981
    
    
    
    2,461Interest on securities sold under repurchase agreements
and short term borrowings
    
    
    99
    
    
    
    84
    
    
    
    277
    
    
    
    238Interest on advances from Federal Home Loan Bank
    
    
    14
    
    
    
    14
    
    
    
    42
    
    
    
    42Total interest expense
    
    
    1,391
    
    
    
    1,084
    
    
    
    3,822
    
    
    
    3,169Net interest income
    
    
    2,530
    
    
    
    2,689
    
    
    
    7,640
    
    
    
    8,050Provision for loan losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net interest Income after provision for
loan losses
    
    
    2,530
    
    
    
    2,689
    
    
    
    7,640
    
    
    
    8,050Other income:Service charges on deposit accounts
    
    
    122
    
    
    
    120
    
    
    
    363
    
    
    
    344Other fees and commissions
    
    
    46
    
    
    
    31
    
    
    
    140
    
    
    
    105Commissions and fees on fiduciary activities
    
    
    21
    
    
    
    32
    
    
    
    44
    
    
    
    67Securities gains
    
    
    2
    
    
    
    4
    
    
    
    6
    
    
    
    25Total other income
    
    
    191
    
    
    
    187
    
    
    
    553
    
    
    
    541Other expenses:Salaries and employee benefits
    
    
    732
    
    
    
    748
    
    
    
    2,266
    
    
    
    2,341Occupancy expenses, net
    
    
    52
    
    
    
    54
    
    
    
    159
    
    
    
    155Furniture and equipment expense
    
    
    24
    
    
    
    28
    
    
    
    76
    
    
    
    81Data processing expense
    
    
    43
    
    
    
    83
    
    
    
    185
    
    
    
    232FDIC insurance
    
    
    7
    
    
    
    8
    
    
    
    23
    
    
    
    25Other operating expenses
    
    
    193
    
    
    
    248
    
    
    
    653
    
    
    
    774Total other expenses
    
    
    1,051
    
    
    
    1,169
    
    
    
    3,362
    
    
    
    3,608Earnings before income taxes
    
    
    1,670
    
    
    
    1,707
    
    
    
    4,831
    
    
    
    4,983Income taxes
    
    
    521
    
    
    
    512
    
    
    
    1,540
    
    
    
    1,544Net earnings
    
    $
    1,149
    
    
    
    1,195
    
    
    $
    3,291
    
    
    
    3,439Basic earnings per common share
    
    $
    1.11
    
    
    
    1.15
    
    
    $
    3.17
    
    
    
    3.29Diluted earnings per common share
    
    $
    1.09
    
    
    
    1.13
    
    
    $
    3.11
    
    
    
    3.24Dividends per share
    
    $
    
    
    
    
    
    
    
    $
    .43
    
    
    
    .43
  4




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FIRST MCMINNVILLE CORPORATION
 
 Consolidated Statements of Comprehensive Earnings
 Three Months and Nine Months Ended September 30, 2005 and 2004
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(In Thousands)Net earnings
    
    $
    1,149
    
    
    
    1,195
    
    
    $
    3,291
    
    
    
    3,439Other comprehensive earnings (losses), net of tax:Unrealized gains (losses) on available-for-sale
securities arising during period, net of income
taxes of $93,000, $573,000, $277,000 and
$97,000, respectively
    
    
    (149
    )
    
    
    926
    
    
    
    (446
    )
    
    
    (157
    )Reclassification adjustment for gains included
in net earnings, net of taxes of $1,000, $1,000,
$2,000 and $10,000, respectively
    
    
    (1
    )
    
    
    (3
    )
    
    
    (4
    )
    
    
    (15
    )Other comprehensive earnings (loss)
    
    
    (150
    )
    
    
    923
    
    
    
    (450
    )
    
    
    (172
    )Comprehensive earnings
    
    $
    999
    
    
    
    2,118
    
    
    
    2,841
    
    
    
    3,267
  5




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 
 Consolidated Statements of Cash Flows
 Nine Months Ended September 30, 2005 and 2004
 Increase (Decrease) in Cash and Cash Equivalents
 2005
    
    
    2004(In Thousands)Cash flows from operating activities:Interest received
    
    $
    11,014
    
    
    
    10,857Fees and commissions received
    
    
    547
    
    
    
    516Interest paid
    
    
    (3,409
    )
    
    
    (3,262
    )Cash paid to suppliers and employees
    
    
    (3,023
    )
    
    
    (3,029
    )Income taxes paid
    
    
    (1,483
    )
    
    
    (1,562
    )Net cash provided by operating activities
    
    
    3,646
    
    
    
    3,520Cash flows from investing activities:Proceeds from maturities of held-to-maturity securities
    
    
    2,501
    
    
    
    7,419Proceeds from maturities of available-for-sale securities
    
    
    14,204
    
    
    
    27,654Purchase of available-for-sale securities
    
    
    (17,000
    )
    
    
    (30,960
    )Purchase of held-to-maturity securities
    
    
    (4,750
    )
    
    
    (7,500
    )Loans made to customers, net of repayments
    
    
    7,099
    
    
    
    2,090Purchase of premises and equipment
    
    
    (284
    )
    
    
    (22
    )Decrease (increase) in interest bearing deposits in financial
institutions
    
    
    (20
    )
    
    
    54Proceeds from sale of other real estate
    
    
    96
    
    
    
    24Net cash provided by (used in) investing activities
    
    
    1,846
    
    
    
    (1,241
    )Cash flows from financing activities:Net increase in non-interest bearing, savings and NOW
deposit accounts
    
    
    4,171
    
    
    
    708Net increase in time deposits
    
    
    4,866
    
    
    
    4,153Increase (decrease) in securities sold under repurchase agreement
    
    
    (7,719
    )
    
    
    1,488Dividends paid
    
    
    (1,822
    )
    
    
    (1,806
    )Payments to acquire treasury stock
    
    
    (530
    )
    
    
    (173
    )Proceeds from sales of common stock
    
    
    50
    
    
    
    46Net cash provided by (used in) financing activities
    
    
    (984
    )
    
    
    4,416Net increase in cash and cash equivalents
    
    
    4,508
    
    
    
    6,695Cash and cash equivalents at beginning of period
    
    
    10,220
    
    
    
    13,084Cash and cash equivalents at end of period
    
    $
    14,728
    
    
    
    19,779
  6




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FIRST MCMINNVILLE CORPORATION
 Consolidated Statements of Cash Flows, Continued
 Nine Months Ended September 30, 2005 and 2004
 Increase (Decrease) in Cash and Cash Equivalents
 (Unaudited)
 2005
    
    
    2004(In Thousands)Reconciliation of net earnings to net cash provided by
operating activities:Net earnings
    
    $
    3,291
    
    
    
    3,439Adjustments to reconcile net earnings to net cash
provided by operating activities:Depreciation
    
    
    188
    
    
    
    228Amortization and accretion, net
    
    
    (298
    )
    
    
    (357
    )Securities gains
    
    
    (6
    )
    
    
    (25
    )Loss (gain) on sales of other real estate
    
    
    (14
    )
    
    
    5FHLB dividend reinvestment
    
    
    (41
    )
    
    
    (35
    )Decrease (increase) in interest receivable
    
    
    (109
    )
    
    
    31Decrease (increase) in other assets, net
    
    
    (69
    )
    
    
    64Increase (decrease) in interest payable
    
    
    413
    
    
    
    (92
    )Increase (decrease) in other liabilities, net
    
    
    291
    
    
    
    262Total adjustments
    
    
    355
    
    
    
    81Net cash provided by operating activities
    
    $
    3,646
    
    
    
    3,520Supplemental schedule of non-cash activities:Unrealized loss in value of securities available-for-sale,
net of income taxes of $279,000 and $107,000, respectively
    
    $
    (450
    )
    
    
    (172
    )Transfer of loans to other real estate
    
    $
    120
    
    
    
    380Other real estate transferred to loans
    
    $
    95
    
    
    
    489
  7




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 Notes to Consolidated Financial Statements
 (Unaudited)
 Basis of Presentation
    8




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 
 Item 2 . Managements Discussion and Analysis of Financial Condition and Results of
Operations
  Cautionary Note Concerning Forward  Looking Statements
  Liquidity and Interest Rate Sensitivity Management
  9




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Liquidity and Interest Rate Sensitivity Management, Continued
      10




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Liquidity and Interest Rate Sensitivity Management, Continued
       11




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Capital Resources
    12




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Capital Resources, Continued
  Results of Operations
      13




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
  September 30,
    
    
    December 31,2005
    
    
    2004(In Thousands)Commercial, financial and agricultural
    
    $
    23,467
    
    
    
    21,946Real estate  construction
    
    
    9,489
    
    
    
    6,563Real estate  mortgage
    
    
    106,257
    
    
    
    117,960Consumer
    
    
    2,877
    
    
    
    2,647$
    142,090
    
    
    
    149,116
    14




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
      15




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
  September 30,
    
    
    December 31,2005
    
    
    2004Recorded
    
    
    Recorded(In Thousands)
    
    Investment
    
    
    InvestmentRecorded investment
    
    $
    1,057
    
    
    $
    1,097Allowance for loan losses
    
    $
    371
    
    
    $
    357
    September 30, 2005
    
    
    December 31, 2004Past Due
    
    
    
    
    
    
    Past Due90 Days
    
    
    Non-Accrual
    
    
    90 Days
    
    
    Non-Accrual(In Thousands)
    
    
    (In Thousands)Real estate mortgage
    
    $
    11
    
    
    
    
    
    
    $
    8
    
    
    
    Consumer
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    Commercial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    14
    
    
    
    
    
    
    $
    8
    
    
    
    Renegotiated loans
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
 16




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
  Nine Months EndedSeptember 30,2005
    
    
    2004(In Thousands)Balance, January 1, 2005 and 2004,
respectively
    
    $
    1,816
    
    
    
    1,909Add (deduct):Losses charged to allowance
    
    
    (27
    )
    
    
    (67
    )Recoveries credited to allowance
    
    
    125
    
    
    
    55Provision for loan losses
    
    
    
    
    
    
    Balance, September 30, 2005 and 2004,
respectively
    
    $
    1,914
    
    
    
    1,897
   17




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
  September 30, 2005(In Thousands)SpecialTotal
    
    
    Mention
    
    
    Substandard
    
    
    DoubtfulCommercial, financial and
agricultural
    
    $
    5,852
    
    
    
    5,015
    
    
    
    837
    
    
    
    Real estate mortgage
    
    
    2,787
    
    
    
    
    
    
    
    2,787
    
    
    
    Real estate construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    86
    
    
    
    
    
    
    
    86
    
    
    
    $
    8,725
    
    
    
    5,015
    
    
    
    3,710
    
    
    
    
 December 31, 2004(In Thousands)SpecialTotal
    
    
    Mention
    
    
    Substandard
    
    
    DoubtfulCommercial, financial and
agricultural
    
    $
    5,621
    
    
    
    4,001
    
    
    
    1,620
    
    
    
    Real estate mortgage
    
    
    2,525
    
    
    
    
    
    
    
    2,469
    
    
    
    56Real estate construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    38
    
    
    
    
    
    
    
    38
    
    
    
    $
    8,184
    
    
    
    4,001
    
    
    
    4,127
    
    
    
    56
   18




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
  September 30, 2005
    
    
    December 31, 2004Percent of
    
    
    
    
    
    
    Percent ofLoans In
    
    
    
    
    
    
    Loans InIn
    
    
    Each Category
    
    
    In
    
    
    Each CategoryThousands
    
    
    To Total Loans
    
    
    Thousands
    
    
    To Total LoansCommercial, financial and
agricultural
    
    $
    932
    
    
    
    16
    %
    
    $
    843
    
    
    
    15
    %Real estate construction
    
    
    24
    
    
    
    7
    
    
    
    16
    
    
    
    4Real estate mortgage
    
    
    907
    
    
    
    75
    
    
    
    914
    
    
    
    79Consumer
    
    
    51
    
    
    
    2
    
    
    
    43
    
    
    
    2$
    1,914
    
    
    
    100
    %
    
    $
    1,816
    
    
    
    100
    %
      19




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Results of Operations, Continued
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In Thousands, except share amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Basic EPS Computation:Numerator  income available to common
shareholders
    
    $
    1,149
    
    
    
    1,195
    
    
    $
    3,291
    
    
    
    3,439Denominator  weighted average number
of common shares outstanding
    
    
    1,034,909
    
    
    
    1,043,583
    
    
    
    1,038,498
    
    
    
    1,043,770Basic earnings per common share
    
    $
    1.11
    
    
    
    1.15
    
    
    $
    3.17
    
    
    
    3.29Diluted EPS Computation:Numerator
    
    $
    1,149
    
    
    
    1,195
    
    
    $
    3,291
    
    
    
    3,439Denominator:Weighted average number of common
shares outstanding
    
    
    1,034,909
    
    
    
    1,043,583
    
    
    
    1,038,498
    
    
    
    1,043,770Dilutive effect of stock options
    
    
    19,076
    
    
    
    18,349
    
    
    
    19,076
    
    
    
    18,3491,053,985
    
    
    
    1,061,932
    
    
    
    1,057,574
    
    
    
    1,062,119Diluted earnings per common share
    
    $
    1.09
    
    
    
    1.13
    
    
    $
    3.11
    
    
    
    3.24
 Stock Option Plan
    20




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations,
Continued
 Stock Option Plan, Continued
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In Thousands, except per share amounts))
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Net earnings:As Reported
    
    $
    1,149
    
    
    
    1,195
    
    
    $
    3,291
    
    
    
    3,439Proforma
    
    $
    1,145
    
    
    
    1,191
    
    
    $
    3,279
    
    
    
    3,430Basic earnings per common share:As Reported
    
    $
    1.11
    
    
    
    1.15
    
    
    $
    3.17
    
    
    
    3.29Proforma
    
    $
    1.11
    
    
    
    1.15
    
    
    $
    3.16
    
    
    
    3.29Diluted earnings per common share:As Reported
    
    $
    1.09
    
    
    
    1.13
    
    
    $
    3.11
    
    
    
    3.24Proforma
    
    $
    1.09
    
    
    
    1.12
    
    
    $
    3.10
    
    
    
    3.23
   Impact of Inflation
  21




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##### Table of Contents



FIRST MCMINNVILLE CORPORATION
 FORM 10-Q, CONTINUED
 
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
     
 Item 4.
    
    Controls and Procedures
    22




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##### Table of Contents



PART II. OTHER INFORMATION
 
 Item 1.
    
    LEGAL PROCEEDINGS
  
 Item 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    None.(b)
    
    Not Applicable.(c)
    
    The Issuer repurchased 4,376 of its common shares in the third quarter of
this fiscal year, which ended September 30, 2005.
 (c)
    
    
    (d)Total Number
    
    
    Maximumof Shares
    
    
    Number (orPeriod Covered
    
    
    
    
    
    
    
    
    
    (or Units)
    
    
    Approximateby this Report -
    
    (a)
    
    
    
    
    
    
    Purchased as
    
    
    Dollar Value)Third Fiscal
    
    Total Number
    
    
    (b)
    
    
    Part of Publicly
    
    
    of SharesQuarter of 2005
    
    of Shares
    
    
    Average Price
    
    
    Announced
    
    
    (or Units)(July 1 through
    
    (or Units)
    
    
    Paid Per
    
    
    Plans
    
    
    that May YetSeptember 30)
    
    Purchased
    
    
    Share (or Unit)
    
    
    or Programs
    
    
    Be PurchasedJuly 1  31
    
    
    
    *
    
    $
    
    
    
    
    *
    
    
    
    *August 1  31
    
    
    4,176
    
    
    
    50.40
    
    
    
    *
    
    
    
    *September 1  30
    
    
    200
    
    
    
    50.77
    
    
    
    *
    
    
    
    *Total
    
    
    4,376
    
    
    $
    50.42
    
    
    
    *
    
    
    
    *
 
 *
    
    The Issuer purchases shares of its stock from time to time in order to provide some liquidity in the
stock. The Issuer does not solicit such purchases. There is no preset number of shares that the Issuer
will purchase and no plan or program of purchases. Because there is no established public trading
market, the Issuer has historically acted as the purchaser of last resort to provide some liquidity in the
shares paying book value, as calculated by it, for shares based on the book value as of the
immediately preceding month end (unaudited). The Issuer does not encourage such sales to it and does not
compete in any manner in effecting such purchases.  
 Item 3.
    
    DEFAULTS UPON SENIOR SECURITIES
 (a)
    
    None.(b)
    
    Not applicable.
 23




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##### Table of Contents



PART II. OTHER INFORMATION, CONTINUED
 
 Item 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 (a)
    
    None(b)
    
    Not Applicable(c)
    
    Not Applicable(d)
    
    Not Applicable
 
 Item 5.
    
    OTHER INFORMATION
 (a)
    
    None(b)
    
    Not Applicable
 
 Item 6.
    
    EXHIBITS
   24




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##### Table of Contents



SIGNATURES
  FIRST MCMINNVILLE CORPORATION(Registrant)DATE: November 9, 2005
    
    /s/ Charles C. JacobsCharles C. JacobsChairman and Chief Executive OfficerDATE: November 9, 2005
    
    /s/ Kenny D. NealKenny D. NealChief Financial and Accounting Officer
 25