##### Table of Contents



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, 2007
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number 0-30050
 PEOPLES FINANCIAL CORPORATION
  Mississippi
    
    64-0709834(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)Lameuse and Howard Avenues, Biloxi, Mississippi
    
    39533(Address of principal executive offices)
    
    (Zip Code)
  (Registrants telephone number, including area code)
 þ o
  o þ o
 o þ




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TABLE OF CONTENTS  PART IItem 2  Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 4: Controls and ProceduresPART IIItem 1  Legal ProceedingsItem 4  Submission of Matters to a Vote of Security HoldersItem 5  Other InformationItem 6  Exhibits and Reports on Form 8-KSIGNATURESCertification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to 18 U.S.C. Section 1350Certification of CFO Pursuant to 18 U.S.C. Section 1350    Table of Contents  
     (Unaudited)
    
    
    (Audited)
    
    
    (Unaudited)March 31, December 31, and March 31,
    
    2007
    
    
    2006
    
    
    2006AssetsCash and due from banks
    
    $
    40,476,666
    
    
    $
    37,793,493
    
    
    $
    64,765,168Federal funds sold
    
    
    4,440,000
    
    
    
    6,400,000
    
    
    
    23,870,000Held to maturity securities, market value of
$43,798,000 - March 31, 2007;
$85,519,000 - December 31, 2006;
$209,672,000 - March 31, 2006
    
    
    43,822,161
    
    
    
    85,574,260
    
    
    
    209,973,869Available for sale securities, at market value
    
    
    438,434,671
    
    
    
    397,207,489
    
    
    
    204,959,326Federal Home Loan Bank stock, at cost
    
    
    1,143,200
    
    
    
    1,128,500
    
    
    
    1,089,800Loans
    
    
    422,702,259
    
    
    
    401,194,010
    
    
    
    354,706,547Less: Allowance for loan losses
    
    
    10,854,058
    
    
    
    10,841,367
    
    
    
    10,975,126Loans, net
    
    
    411,848,201
    
    
    
    390,352,643
    
    
    
    343,731,421Bank premises and equipment, net of
accumulated depreciation
    
    
    20,961,878
    
    
    
    19,658,585
    
    
    
    19,453,383Accrued interest receivable
    
    
    7,547,823
    
    
    
    8,142,230
    
    
    
    4,358,496Other assets
    
    
    18,087,037
    
    
    
    17,765,868
    
    
    
    19,073,435Total assets
    
    $
    986,761,637
    
    
    $
    964,023,068
    
    
    $
    891,274,898
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##### Table of Contents



(Unaudited)
    
    
    (Audited)
    
    
    (Unaudited)March 31, December 31, and March 31,
    
    2007
    
    
    2006
    
    
    2006Liabilities & Shareholders EquityLiabilities:Deposits:Demand, non-interest bearing
    
    $
    148,453,991
    
    
    $
    148,455,754
    
    
    $
    181,777,595Savings and demand, interest bearing
    
    
    277,213,793
    
    
    
    271,331,272
    
    
    
    319,689,203Time, $100,000 or more
    
    
    137,112,142
    
    
    
    132,846,509
    
    
    
    62,405,284Other time deposits
    
    
    59,685,277
    
    
    
    60,536,259
    
    
    
    65,540,357Total deposits
    
    
    622,465,203
    
    
    
    613,169,794
    
    
    
    629,412,439Federal funds purchased and securities
sold under agreements to
repurchase
    
    
    238,264,001
    
    
    
    226,032,370
    
    
    
    155,434,163Borrowings from Federal Home Loan Bank
    
    
    7,224,546
    
    
    
    7,267,349
    
    
    
    7,310,139Other liabilities
    
    
    17,648,310
    
    
    
    19,320,860
    
    
    
    9,314,809Total liabilities
    
    
    885,602,060
    
    
    
    865,790,373
    
    
    
    801,471,550Shareholders Equity:Common Stock, $1 par value, 15,000,000
shares authorized, 5,548,199,
5,548,199 and 5,548,399 shares
issued and outstanding at March 31,
2007, December 31, 2006 and
March 31, 2006, respectively
    
    
    5,548,199
    
    
    
    5,548,199
    
    
    
    5,548,399Surplus
    
    
    65,780,254
    
    
    
    65,780,254
    
    
    
    65,780,254Undivided profits
    
    
    31,969,148
    
    
    
    29,253,825
    
    
    
    21,464,032Accumulated other comprehensive income
    
    
    (2,138,024
    )
    
    
    (2,349,583
    )
    
    
    (2,989,337
    )Total shareholders equity
    
    
    101,159,577
    
    
    
    98,232,695
    
    
    
    89,803,348Total liabilities and shareholders equity
    
    $
    986,761,637
    
    
    $
    964,023,068
    
    
    $
    891,274,898
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For the Quarter Ended March 31,
    
    2007
    
    
    2006Interest income:Interest and fees on loans
    
    $
    7,789,889
    
    
    $
    6,183,077Interest and dividends on investments:U. S. Treasury
    
    
    1,315,311
    
    
    
    1,828,082U. S. Government agencies and corporations
    
    
    4,271,533
    
    
    
    1,758,533States and political subdivisions
    
    
    223,162
    
    
    
    208,601Other investments
    
    
    143,548
    
    
    
    85,974Interest on federal funds sold
    
    
    51,109
    
    
    
    440,490Total interest income
    
    
    13,794,552
    
    
    
    10,504,757Interest expense:Deposits
    
    
    3,526,334
    
    
    
    2,218,270Borrowings from Federal Home Loan Bank
    
    
    114,543
    
    
    
    115,866Federal funds purchased and securities sold under
agreements to repurchase
    
    
    2,725,052
    
    
    
    663,245Total interest expense
    
    
    6,365,929
    
    
    
    2,997,381Net interest income
    
    
    7,428,623
    
    
    
    7,507,376Provision for losses on loans
    
    
    49,000
    
    
    
    35,000Net interest income after provision for losses on loans
    
    $
    7,379,623
    
    
    $
    7,472,376
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For the Quarter Ended March 31,
    
    2007
    
    
    2006Other operating income:Trust department income and fees
    
    $
    448,620
    
    
    $
    356,017Service charges on deposit accounts
    
    
    1,671,861
    
    
    
    1,060,487Other service charges, commissions and fees
    
    
    57,530
    
    
    
    74,507Other income
    
    
    471,960
    
    
    
    179,529Total other operating income
    
    
    2,649,971
    
    
    
    1,670,540Other operating expense:Salaries and employee benefits
    
    
    3,387,175
    
    
    
    3,033,019Net occupancy
    
    
    377,705
    
    
    
    343,002Equipment rentals, depreciation and maintenance
    
    
    783,670
    
    
    
    661,205Other expense
    
    
    1,477,721
    
    
    
    1,282,240Total other operating expense
    
    
    6,026,271
    
    
    
    5,319,466Income before income taxes
    
    
    4,003,323
    
    
    
    3,823,450Income taxes
    
    
    1,288,000
    
    
    
    1,290,000Net income
    
    $
    2,715,323
    
    
    $
    2,533,450Basic and diluted earnings per share
    
    $
    .49
    
    
    $
    .46
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Accumu-lated Other# of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Compre
    
    
    CompreCommon
    
    
    Common
    
    
    
    
    
    
    Undivided
    
    
    -hensive
    
    
    -hensiveShares
    
    
    Stock
    
    
    Surplus
    
    
    Profits
    
    
    Income
    
    
    Income
    
    
    TotalBalance, January 1,
2006
    
    
    5,549,128
    
    
    $
    5,549,128
    
    
    $
    65,780,254
    
    
    $
    18,942,855
    
    
    $
    (2,769,106
    )
    
    
    
    
    
    $
    87,503,131Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,533,450
    
    
    
    
    
    
    $
    2,533,450
    
    
    
    2,533,450Net unrealized
loss on available
for sale
securities, net of
tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (220,231
    )
    
    
    (220,231
    )
    
    
    (220,231
    )Total
comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,313,219Retirement of
common stock
    
    
    (729
    )
    
    
    (729
    )
    
    
    
    
    
    
    (12,273
    )
    
    
    
    
    
    
    
    
    
    
    (13,002
    )Balance, March 31,
2006
    
    
    5,548,399
    
    
    $
    5,548,399
    
    
    $
    65,780,254
    
    
    $
    21,464,032
    
    
    $
    (2,989,337
    )
    
    
    
    
    
    $
    89,803,348
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Accumu-
lated Other# of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Compre-
    
    
    Compre-Common
    
    
    Common
    
    
    
    
    
    
    Undivided
    
    
    hensive
    
    
    hensiveShares
    
    
    Stock
    
    
    Surplus
    
    
    Profits
    
    
    Income
    
    
    Income
    
    
    TotalBalance, January 1,
2007
    
    
    5,548,199
    
    
    $
    5,548,199
    
    
    $
    65,780,254
    
    
    $
    29,253,825
    
    
    $
    (2,349,583
    )
    
    
    
    
    
    $
    98,232,695Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,715,323
    
    
    
    
    
    
    $
    2,715,323
    
    
    
    2,715,323Net unrealized gain
on available for
sale securities,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    199,490
    
    
    
    199,490
    
    
    
    199,490Reclassification
adjustment for
available for sale
securities called
or sold in current
year, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,069
    
    
    
    12,069
    
    
    
    12,069Total
comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,926,882Balance, March 31,
2007
    
    
    5,548,199
    
    
    $
    5,548,199
    
    
    $
    65,780,254
    
    
    $
    31,969,148
    
    
    $
    (2,138,024
    )
    
    
    
    
    
    $
    101,159,577
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For the Quarter Ended March 31,
    
    2007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    2,715,323
    
    
    $
    2,533,450Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation
    
    
    435,000
    
    
    
    369,000Provision for losses on loans
    
    
    49,000
    
    
    
    35,000Gain on sale of Other Real Estate
    
    
    (10,470
    )Loss on sales, calls and liquidation of securities
    
    
    15,993Changes in assets and liabilities:Accrued interest receivable
    
    
    594,407
    
    
    
    (43,138
    )Other assets
    
    
    (319,586
    )
    
    
    (241,443
    )Other liabilities
    
    
    (400,414
    )
    
    
    1,439,831Net cash provided by operating activities
    
    
    3,079,253
    
    
    
    4,092,700Cash flows from investing activities:Proceeds from maturities and calls of held to maturity
securities
    
    
    47,090,000
    
    
    
    62,000,000Proceeds
from maturities, sales and calls of available for sale securities
    
    
    43,077,975
    
    
    
    3,100,292Purchases of investments in held to maturity securities
    
    
    (5,337,901
    )
    
    
    (137,926,910
    )Purchases of investments in available for sale securities
    
    
    (83,995,457
    )
    
    
    (29,999,197
    )Purchases of investments in Federal Home Loan Bank
    
    
    (14,700
    )
    
    
    (13,200
    )Proceeds from sales of other real estate
    
    
    55,000
    
    
    
    6,000Loans, net increase
    
    
    (21,544,558
    )
    
    
    (5,386,103
    )Acquisition of premises and equipment
    
    
    (1,738,294
    )
    
    
    (1,934,476
    )Other assets
    
    
    (156,296
    )
    
    
    (118,278
    )Net cash used in investing activities
    
    $
    (22,564,231
    )
    
    $
    (110,271,872
    )
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For the Quarter Ended March 31,
    
    2007
    
    
    2006Cash flows from financing activities:Demand and savings deposits, net increase
    
    $
    5,880,758
    
    
    $
    23,786,863Time deposits, net increase
    
    
    3,414,651
    
    
    
    13,408,234Borrowings from Federal Home Loan Bank
    
    
    4,150,000
    
    
    
    4,600,000Repayments to Federal Home Loan Bank
    
    
    (4,192,803
    )
    
    
    (4,641,866
    )Retirement of common stock
    
    
    
    
    
    
    (13,002
    )Cash dividends
    
    
    (1,276,086
    )
    
    
    (1,109,826
    )Federal funds purchased and securities sold under
agreements to repurchase, net increase
    
    
    12,231,631
    
    
    
    6,166,413Net cash provided by financing activities
    
    
    20,208,151
    
    
    
    42,196,816Net increase (decrease) in cash and cash equivalents
    
    
    723,173
    
    
    
    (63,982,356
    )Cash and cash equivalents, beginning of period
    
    
    44,193,493
    
    
    
    152,617,524Cash and cash equivalents, end of period
    
    $
    44,916,666
    
    
    $
    88,635,168
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Less Than TwelveMonths
    
    
    Over Twelve Months
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnreal-
    
    
    
    
    
    
    Unreal-
    
    
    Fair
    
    
    Unreal-March 31, 2007:
    
    Fair Value
    
    
    ized Loss
    
    
    Fair Value
    
    
    ized Loss
    
    
    Value
    
    
    ized LossU. S. Treasury
    
    $
    28,794
    
    
    $
    30
    
    
    $
    31,719
    
    
    $
    259
    
    
    $
    60,513
    
    
    $
    289U. S. Govt. Agencies
    
    
    99,887
    
    
    
    280
    
    
    
    117,020
    
    
    
    1,463
    
    
    
    216,907
    
    
    
    1,743States and
political
subdivisions
    
    
    3,780
    
    
    
    41
    
    
    
    8,028
    
    
    
    177
    
    
    
    11,808
    
    
    
    218Mortgage backed
securities
    
    
    9,735
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    9,735
    
    
    
    44FHLMC preferred
stock
    
    
    
    
    
    
    
    
    
    
    2,459
    
    
    
    616
    
    
    
    2,459
    
    
    
    616Total
    
    $
    142,196
    
    
    $
    395
    
    
    $
    159,226
    
    
    $
    2,515
    
    
    $
    301,422
    
    
    $
    2,910
 Less Than TwelveMonths
    
    
    Over Twelve Months
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossUnreal-
    
    
    
    
    
    
    Unreal-
    
    
    Fair
    
    
    Unreal-March 31, 2006:
    
    Fair Value
    
    
    ized Loss
    
    
    Fair Value
    
    
    ized Loss
    
    
    Value
    
    
    ized LossU. S. Treasury
    
    $
    157,410
    
    
    $
    382
    
    
    $
    22,564
    
    
    $
    413
    
    
    $
    179,974
    
    
    $
    795U. S. Govt. Agencies
    
    
    127,089
    
    
    
    887
    
    
    
    75,191
    
    
    
    2,286
    
    
    
    202,280
    
    
    
    3,173States and
political
subdivisions
    
    
    6,297
    
    
    
    64
    
    
    
    5,717
    
    
    
    219
    
    
    
    12,014
    
    
    
    283FHLMC preferred
stock
    
    
    
    
    
    
    
    
    
    
    2,276
    
    
    
    799
    
    
    
    2,276
    
    
    
    799Total
    
    $
    290,796
    
    
    $
    1,333
    
    
    $
    105,748
    
    
    $
    3,717
    
    
    $
    396,544
    
    
    $
    5,050
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For the Quarter
    
    
    For the Year
    
    
    For the QuarterEnded March
    
    
    Ended December
    
    
    Ended March31, 2007
    
    
    31, 2006
    
    
    31, 2006Balance, beginning of
period
    
    $
    10,841,367
    
    
    $
    10,966,022
    
    
    $
    10,966,022Provision for loan losses
    
    
    49,000
    
    
    
    141,000
    
    
    
    35,000Recoveries
    
    
    64,159
    
    
    
    463,345
    
    
    
    122,250Loans charged off
    
    
    (100,468
    )
    
    
    (729,000
    )
    
    
    (148,146
    )Balance, end of period
    
    $
    10,854,058
    
    
    $
    10,841,367
    
    
    $
    10,975,126
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Page 13




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Forward-Looking Information
  Overview
    For the quarters ended March 31,
    
    2007
    
    
    2006Net income per share
    
    $
    .49
    
    
    $
    .46Book value per share
    
    $
    18.23
    
    
    $
    16.19Return on average total assets
    
    
    1.10
    %
    
    
    1.15
    %Return on average shareholders equity
    
    
    10.89
    %
    
    
    8.85
    %Allowance for loan losses as a % of
loans, net of unearned
discount
    
    
    2.57
    %
    
    
    3.09
    %
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Financial Condition
 Held to Maturity Securities
   March 31,
    
    2007
    
    
    
    
    
    
    2006Amount
    
    
    %
    
    Amount
    
    
    %U. S. Treasury
    
    $
    4,997,361
    
    
    
    11
    %
    
    $
    134,819,398
    
    
    
    64
    %U. S. Government agencies
    
    
    10,000,000
    
    
    
    23
    %
    
    
    69,000,000
    
    
    
    33
    %State and political
subdivisions
    
    
    28,824,800
    
    
    
    66
    %
    
    
    6,154,471
    
    
    
    3
    %Totals
    
    $
    43,822,161
    
    
    
    100
    %
    
    $
    209,973,869
    
    
    
    100
    %
 Available for Sale Securities
   Page 15




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March 31,
    
    2007
    
    
    
    
    
    
    2006Amount
    
    
    %
    
    Amount
    
    
    %U. S. Treasury
    
    $
    82,883,488
    
    
    
    19
    %
    
    $
    47,320,217
    
    
    
    23
    %U. S. Government agencies
    
    
    322,783,121
    
    
    
    74
    %
    
    
    140,451,521
    
    
    
    69
    %State and political
subdivisions
    
    
    18,758,816
    
    
    
    4
    %
    
    
    14,095,381
    
    
    
    7
    %Mortgage back securities
    
    
    9,734,834
    
    
    
    2
    %Other securities
    
    
    4,274,412
    
    
    
    1
    %
    
    
    3,092,207
    
    
    
    1
    %Totals
    
    $
    438,434,671
    
    
    
    100
    %
    
    $
    204,959,326
    
    
    
    100
    %
 Loans
  Bank Premises and Equipment
  Accrued Interest Receivable
  Other Assets
  Deposits
  Page 16




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Federal Funds Purchased and Securities Sold Under Agreements to Repurchase
  Other Liabilities
  Shareholders Equity and Capital Adequacy
  RESULTS OF OPERATIONS
 Net Interest Income
  Page 17




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Page 18




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For the Quarter Ended March 31, 2007
    

For the Quarter Ended March 31, 2006Interest
    
    
    
    
    
    
    
    
    
    InterestAverage
    
    Earned/
    
    
    
    
    
    Average
    
    Earned/Balance
    
    Paid
    
    Yield
    
    Balance
    
    Paid
    
    YieldINTEREST INCOME:Loans (2)(3)
    
    $
    403,773
    
    
    $
    7,790
    
    
    
    7.72
    %
    
    $
    348,251
    
    
    $
    6,183
    
    
    
    7.10
    %Federal funds sold
    
    
    3,750
    
    
    
    51
    
    
    
    5.44
    %
    
    
    35,623
    
    
    
    440
    
    
    
    4.94
    %Held to maturity:Taxable
    
    
    54,407
    
    
    
    685
    
    
    
    5.04
    %
    
    
    179,996
    
    
    
    1,953
    
    
    
    4.34
    %Non-taxable (1)
    
    
    5,029
    
    
    
    80
    
    
    
    6.36
    %
    
    
    6,152
    
    
    
    110
    
    
    
    7.15
    %Available for sale:Taxable
    
    
    400,995
    
    
    
    4,901
    
    
    
    4.89
    %
    
    
    170,776
    
    
    
    1,634
    
    
    
    3.83
    %Non-taxable (1)
    
    
    17,520
    
    
    
    258
    
    
    
    5.89
    %
    
    
    14,188
    
    
    
    206
    
    
    
    5.81
    %Other
    
    
    5,401
    
    
    
    144
    
    
    
    10.66
    %
    
    
    4,037
    
    
    
    86
    
    
    
    8.52
    %Total
    
    $
    890,875
    
    
    $
    13,909
    
    
    
    6.25
    %
    
    $
    759,023
    
    
    $
    10,612
    
    
    
    5.59
    %INTEREST EXPENSE:Savings and
demand,
interest
bearing
    
    $
    287,874
    
    
    $
    1,438
    
    
    
    2.00
    %
    
    $
    317,422
    
    
    $
    1,262
    
    
    
    1.59
    %Time deposits
    
    
    195,716
    
    
    
    2,088
    
    
    
    4.27
    %
    
    
    121,827
    
    
    
    956
    
    
    
    3.14
    %Federal funds
purchased and
securities sold
under agreements to
repurchase
    
    
    231,234
    
    
    
    2,725
    
    
    
    4.71
    %
    
    
    129,192
    
    
    
    663
    
    
    
    2.05
    %Borrowings from FHLB
    
    
    7,249
    
    
    
    115
    
    
    
    6.35
    %
    
    
    8,050
    
    
    
    116
    
    
    
    5.76
    %Total
    
    $
    722,073
    
    
    $
    6,366
    
    
    
    3.53
    %
    
    $
    576,491
    
    
    $
    2,997
    
    
    
    2.08
    %Net tax-equivalent
yield on earnings
assets
    
    
    
    
    
    
    
    
    
    
    3.39
    %
    
    
    
    
    
    
    
    
    
    
    4.01
    %
 
 (1)
    
    All interest earned is reported on a taxable equivalent basis using a tax rate of 34% in 2007
and 2006.(2)
    
    Loan fees of $159 and $143 for 2007 and 2006, respectively, are included in these figures.(3)
    
    Includes nonaccrual loans.




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Provision for Loan Losses




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##### Table of Contents



Trust Department Income and Fees
  Service Charges on Deposit Accounts
  Other Income
  Salaries and Employee Benefits
  Net Occupancy
  Equipment Rentals, Depreciation and Maintenance
  Other Expense
  Page 21




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##### Table of Contents



LIQUIDITY
   
 Item 4: Controls and Procedures




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(
  Approve
    
    DisapproveDrew Allen
    
    
    4,994,210.750
    
    
    
    335.685Rex E. Kelly
    
    
    4,994,210.750
    
    
    
    335.685Dan Magruder
    
    
    4,994,210.750
    
    
    
    335.685Lyle M. Page
    
    
    4,860,615.750
    
    
    
    133,930.685Chevis C. Swetman
    
    
    4,613,582.750
    
    
    
    381,963.685
  
   President and CEO
    
    Chevis C. SwetmanExecutive Vice President
    
    A. Wes FulmerFirst Vice President
    
    Thomas J. SlimanSecond Vice President
    
    Jeannette E. RomeroVice President
    
    Robert M. TuceiVice President and Secretary
    
    Ann F. GuiceChief Financial Officer
    
    Lauri A. Wood
 
   Exhibit 31.1:
    
    Certification of Chief Executive Officer Pursuant to
Section 302 of the Sarbanes  Oxley Act of 2002Exhibit 31.2:
    
    Certification of Chief Financial Officer Pursuant
to Section 302 of the Sarbanes  Oxley Act of 2002Exhibit 32.1:
    
    Certification of Chief Executive Officer Pursuant
to 18 U.S.C. ss. 1350Exhibit 32.2:
    
    Certification of Chief Financial Officer Pursuant
to 18 U.S.C. ss. 1350




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##### Table of Contents



Date: May 9, 2007By:
    
    /s/ Chevis C. SwetmanChevis C. SwetmanChairman, President and Chief Executive OfficerDate: May 9, 2007By:
    
    /s/ Lauri A. WoodLauri A. WoodChief Financial Officer and Controller(principal financial and accounting officer)