As
filed with the Securities and Exchange Commission on July 29, 2020
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER THE SECURITIES ACT OF 1933
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CODORUS
VALLEY BANCORP, INC.
(Exact
name of registrant as specified in its charter)
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Pennsylvania
(State or other jurisdiction of incorporation
or organization)
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23-2428543
(IRS Employer Identification Number)
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105 Leader
Heights Road
P.O.
Box 2887
York,
PA 17405
(717)
747-1519
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(Address,
including zip code, and telephone number, including area code, of registrant’s principal executive
offices)
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Larry J.
Miller
Chairman,
President and Chief Executive Officer
105 Leader
Heights Road
P.O.
Box 2887
York,
PA 17405
(717)
747-1519
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With
Copies To:
Charles J.
Ferry, Esq.
Stevens &
Lee, P.C.
17
North Second Street, 16th Floor
Harrisburg,
PA 17101
(717)
255-7380
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(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Approximate
date of commencement of proposed sale to the public: From time to time after the Registration Statement becomes effective.
If
the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please
check the following box. ☒
If
any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans,
check the following box. ☐
If
this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please
check the following box and list the Securities Act registration statement number of earlier effective registration statement
for the same offering. ☐
If
this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ☐
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register
additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following
box. ☐
Indicate
by check mark whether the registration is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated
filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange
Act.
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Large
accelerated filer ☐
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Accelerated
filer ☒
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Non-accelerated
filer ☐
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Smaller
reporting company ☒
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Emerging growth
company ☐
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If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities
Act. ☐
CALCULATION
OF REGISTRATION FEE
Title
of Each Class of Securities to be Registered
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Amount
to be
Registered(1)
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Proposed
Maximum Offering Share Price (2)
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Proposed
Maximum Aggregate Offering Price (2)
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Amount
of
Registration Fee
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Common
Stock, $2.50 par value
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250,000
shares
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$12.75
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$3,187,500.00
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$413.74
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(1) On
July 14, 2020, the board of directors authorized the issuance of an additional 250,000 shares under the Plan. The
shares being registered hereby do not include shares of common stock previously registered on Registration Statement No.
333-179179 on Form S-3.
(2) Estimated
solely for the purpose of determining the registration fee in accordance with Rule 457(c). Based upon
the average of the high and low price, as reported by NASDAQ, as of July 24, 2020.
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PROSPECTUS
CODORUS
VALLEY BANCORP, INC.
Dividend Reinvestment and Stock Purchase Plan
Cusip
No. 192025 10 4
250,000
Shares of Common Stock
$2.50 Par Value
This
Prospectus relates to 250,000 shares of the $2.50 par value common stock of Codorus Valley Bancorp, Inc. (“Codorus Valley”
or the “Corporation”) which may be issued under the Codorus Valley Bancorp, Inc. Dividend Reinvestment and Stock Purchase
Plan (the “Plan”) which Plan was adopted on February 25, 1992, and amended on December 16, 1994, January 12,
1999, July 23, 2004, January 26, 2012 and July 14, 2020.
The
Plan provides shareholders of the Corporation’s common stock with a simple and convenient method of investing cash dividends
in additional shares of common stock. Shareholders who elect to enroll in the Plan (“participants”) will, if they
so desire, direct any cash dividends paid on their shares of common stock toward automatic investment in additional shares of
common stock. The Plan also provides each participant with a convenient and economical way to voluntarily purchase additional
shares of common stock within the limitations provided in the Plan.
Shares
acquired for the Plan will be purchased in the open market, in negotiated transactions or from the Corporation. The purchase price
of shares purchased from the Corporation will be the fair market value per share, as defined, at the purchase date. As of July 24,
2020, the market price of the Corporation’s common stock was $12.75. The purchase price of shares purchased in the
open market or in negotiated transactions will be the price paid for the shares, excluding all fees, brokerage commissions and
expenses. Shareholders who do not elect to participate in the Plan will receive dividends, as declared and paid, by check.
The
Corporation is listed on the NASDAQ Global Market under the symbol “CVLY.”
Reference
is made to the “Explanation of Dividend Reinvestment and Stock Purchase Plan” section, which is considered part of
this Prospectus, for further information on the Plan.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
See
“Risk Factors” beginning on page 1 for a discussion of various factors that shareholders should consider about
an investment in our common stock.
The
date of this Prospectus is July 29, 2020.
TABLE
OF CONTENTS
PROSPECTUS
SUMMARY
The
Corporation
Codorus
Valley Bancorp, Inc. (“Codorus Valley” or the “Corporation”), a Pennsylvania business corporation, is
a bank holding company registered with and supervised by the Board of Governors of the Federal Reserve System. The Corporation
was formed in 1986 for the purpose of becoming the parent holding company of PeoplesBank, A Codorus Valley Company, formerly named
Peoples Bank of Glen Rock (“PeoplesBank” or the “Bank”). The formation was effective March 2, 1987.
The Bank, a state-chartered institution, is a full service commercial bank and provides a wide range of services to individuals
and small to medium-sized businesses in its York County, Pennsylvania and northern Maryland market areas.
The
principal executive offices of the Corporation are located at Codorus Valley Corporate Center, 105 Leader Heights Road, P.O.
Box 2887, York, Pennsylvania 17405-2887. The telephone number of the Corporation is (717) 747-1519.
The
Offering; The Plan; Use of Proceeds
The
securities offered hereby are a maximum of 250,000 shares of the Corporation’s common stock, par value $2.50 per share.
The purpose of the offering is to provide holders of the Corporation’s common stock with a simple and convenient method
of investing cash dividends and voluntary cash payments in additional shares of common stock, without incurring brokerage commissions,
through the Corporation's Dividend Reinvestment and Stock Purchase Plan (the “Plan”).
Detailed
information concerning the Plan is provided under “Explanation of the Dividend Reinvestment and Stock Purchase Plan,”
which should be reviewed carefully.
Shares
may be acquired for issuance pursuant to the Plan through open market purchases, through negotiated transactions or from the Corporation.
Open market purchases will be made by an independent purchasing agent retained to act as agent for Plan participants, and the
purchase price to participants will be the actual price paid, excluding brokerage commissions and other expenses, which commissions
and expenses will be paid by the Corporation. The Corporation will receive none of the proceeds from shares acquired for issuance
pursuant to the Plan unless the acquisitions involve the purchase of shares from the Corporation. To the extent any shares are
purchased from the Corporation, the proceeds of such sales will be added to the general funds of the Corporation and will be available
for its general corporate purposes, including working capital requirements and contributions to the Corporation's banking subsidiary
to support its anticipated growth and expansion.
RISK
FACTORS
The
purpose of the Plan is to provide a simple and convenient method of investing cash dividends in additional shares of common stock.
Nothing in this Prospectus represents a recommendation by the Corporation or anyone else that a person buy or sell the Corporation’s
common stock. We urge you to read this Prospectus thoroughly before you make your investment decision regarding participation
in the plan.
Before
investing in the Corporation’s common stock, you should be aware that an investment in our common stock involves a variety
of risks, including those described below. You should carefully read and consider the risks described below, in addition to the
other information contained in this Prospectus and in our other filings with the SEC, before you decide whether to purchase Codorus
Valley common stock. Unless the context otherwise requires, references to “we,” “us,” “our,”
“Codorus Valley Bancorp, Inc.,” “Codorus Valley” or the “Corporation” refer to Codorus Valley
Bancorp, Inc. and its direct or indirect owned subsidiaries, and references to the “Bank” refer to PeoplesBank, a
Codorus Valley Company, the wholly-owned banking subsidiary of the Corporation.
The
risks and uncertainties described below are not the only ones facing the Corporation. Additional risks and uncertainties that
we are not aware of or focused on, or that we currently deem immaterial, may also impact our business and results of operations.
If any of these known or unknown risks or uncertainties actually occurs, our business, financial condition and results of operations
could be materially and adversely affected. If this were to happen, the market price of our common stock could decline significantly,
and you could lose all or part of your investment.
The
effect of COVID-19 and related events could have a negative effect on the Corporation's business prospects, financial condition
and results of operations.
In
December 2019, a coronavirus (COVID-19) was reported in China, and, in March 2020, the World Health Organization declared
it a pandemic. Since first being reported in China, the coronavirus has spread to additional countries including the United
States.
On March 13, 2020, President Trump declared the ongoing COVID–19 pandemic of sufficient severity and magnitude to warrant
an emergency declaration for all states, territories, and the District of Columbia.
In
response, many state and local governments, including the Commonwealth of Pennsylvania and the State of Maryland, have instituted
emergency restrictions that have substantially limited the operation of non-essential businesses and the activities of individuals.
It has been widely reported that these restrictions have resulted in significant adverse effects for many different types of businesses,
particularly those in the travel, hospitality and food and beverage industries, among many others, and has resulted in a significant
number of layoffs and furloughs of employees nationwide and in the regions in which the Corporation operates. The ultimate effect
of COVID-19 on the local or broader economy is not known nor is the ultimate length of the restrictions described and any accompanying
effects. Moreover, the Federal Reserve has taken action to lower the Federal Funds rate, which may negatively affect interest
income and, therefore, earnings. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the impact
of the coronavirus outbreak, and there is no guarantee that the Corporation’s efforts to address the adverse impacts of
the coronavirus will be effective. The extent of such impact will depend on future developments, which are highly uncertain and
cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and actions taken to
contain the coronavirus or its impact, among others.
The
effect of COVID-19 and related events, including those described above and those not yet known or knowable, could have a negative
effect on the Corporation's business prospects, financial condition and results of operations, as a result of quarantines; market
volatility; market downturns; changes in consumer behavior; business closures; deterioration in the credit quality of borrowers
or the inability of borrowers to satisfy their obligations (and any related forbearances or restructurings that may be implemented);
changes in the value of collateral securing outstanding loans; changes in the value of the investment securities portfolio; effects
on key employees, including operational management personnel and those charged with preparing, monitoring and evaluating the Corporation's
financial reporting and internal controls; declines in the demand for loans and other banking services and products; declines
in demand resulting from adverse impacts of the disease on businesses deemed to be "non-essential" by governments; and
branch or office closures and business interruptions.
Risks
Related to Our Business and Industry
Weakness
in the economy may materially adversely affect our business and results of operations.
Our
results of operations are materially affected by conditions in the economy generally, which continue to be uncertain and include
uneven economic growth, accompanied by low interest rates. Dramatic declines in the housing market following the 2008 financial
crisis, with falling home prices and increasing foreclosures and unemployment, resulted in significant write-downs of asset values
by financial institutions. While conditions have improved, a return to a recessionary or excessive inflationary economy could
result in financial stress on our borrowers that would adversely affect consumer confidence, a reduction in general business activity
and increased market volatility. The resulting economic pressure on consumers and businesses and the lack of confidence in the
financial markets could adversely affect our business, financial condition, results of operations and stock price. Our ability
to properly assess the creditworthiness of our clients and to estimate the losses inherent in our credit exposure would be made
more complex by these difficult market and economic conditions. Accordingly, if market conditions worsen, we may experience increases
in foreclosures, delinquencies, write-offs and client bankruptcies, as well as more restricted access to funds.
Deterioration
in our local and regional economy or real estate market may adversely affect our business.
Substantially
all of our business is with clients located within South Central Pennsylvania, principally York and Lancaster Counties and North
Central Maryland, principally Harford County, Baltimore County and Baltimore City. As a result of this geographic concentration,
our results depend largely on economic conditions in these and surrounding areas. Deterioration in economic conditions in these
markets could:
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increase
loan delinquencies;
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increase
problem assets and foreclosures;
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increase
claims and lawsuits;
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decrease
the demand for our products and services; and
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decrease
the value of collateral for loans, especially real estate, in turn reducing clients’
borrowing power, the value of assets associated with nonperforming loans and collateral
coverage.
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Generally,
we make loans to small and mid-sized businesses whose success depends on the regional economy. These businesses generally have
fewer financial resources in terms of capital or borrowing capacity than larger entities. Adverse economic and business conditions
in our market area could reduce our growth rate, affect our borrowers’ ability to repay their loans and, consequently, adversely
affect our financial condition and performance. For example, we place substantial reliance on real estate as collateral for our
loan portfolio. A sharp downturn in real estate values in our market area could leave many of our loans inadequately collateralized.
If we are required to liquidate the collateral securing a loan to satisfy the debt during a period of reduced real estate values,
our earnings could be adversely affected.
If
our allowance for loan and lease losses is not sufficient to cover actual loan and lease losses, our earnings would decrease.
We
are exposed to the risk that our borrowers may default on their obligations. To absorb probable, incurred loan and lease losses
that we may realize, we recognize an allowance for loan and lease losses based on, among other things, national and regional economic
conditions, historical loss experience, and delinquency trends. However, we cannot estimate loan and lease losses with certainty,
and we cannot assure you that charge-offs in future periods will not exceed the allowance for loan and lease losses. If charge-offs
exceed our allowance, our earnings would decrease. In addition, regulatory agencies, as an integral part of their examination
process, review our allowance for loan and lease losses and may require additions to the allowance based on their judgment about
information available to them at the time of their examination. Factors that require an increase in our allowance for loan and
lease losses, such as a prolonged economic downturn or continued weakening in general economic conditions such as inflation, recession,
unemployment or other factors beyond our control, could reduce our earnings.
Our
exposure to credit risk, which is heightened by our focus on commercial lending, could adversely affect our earnings and financial
condition.
There
are certain risks inherent in making loans. These risks include interest rate changes over the time period in which loans may
be repaid, risks resulting from changes in the economy, risks inherent in dealing with borrowers and, in the case of a loan backed
by collateral, risks resulting from uncertainties about the future value of the collateral if a disposition is necessary.
Commercial
loans, including commercial real estate, are generally viewed as having a higher credit risk than residential real estate or consumer
loans because they usually involve larger loan balances to a single borrower and are more susceptible to a risk of default during
an economic downturn. Our consolidated commercial lending operations include commercial, financial and agricultural lending, real
estate construction lending, and commercial mortgage lending. Construction financing typically involves a higher degree of credit
risk than commercial mortgage lending. Risk of loss on a construction loan depends largely on the accuracy of the initial estimate
of the property’s value at completion of construction compared to the estimated cost (including interest) of construction.
If the estimated property value proves to be inaccurate, the loan may be inadequately collateralized.
Because
our loan portfolio contains a significant number of commercial real estate, commercial and industrial loans, and construction
loans, the deterioration of these loans may cause a significant increase in nonperforming loans. An increase in nonperforming
loans could cause an increase in loan related legal fees and expenses, loan charge-offs and a corresponding increase in the provision
for loan losses, which could adversely impact our financial condition and results of operations.
We
depend primarily on net interest income for our earnings, and changes in interest rates could adversely impact our financial condition
and results of operations.
Our
ability to make a profit, like that of most financial institutions, substantially depends upon our net interest income, which
is the difference between the interest income earned on interest earning assets, such as loans and investment securities, and
the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. Changes in interest rates can increase
or reduce net interest income and net income.
Different
types of assets and liabilities may react differently, and at different times, to changes in market interest rates. When interest-bearing
liabilities mature or reprice more quickly than interest-earning assets in a period, an increase in market rates of interest could
reduce net interest income. When interest-earning assets mature or reprice more quickly than interest-bearing liabilities, falling
interest rates could reduce net interest income. Changes in market interest rates are affected by many factors beyond our control,
including inflation, unemployment, money supply, international events, and events in the United States and other financial markets.
We
attempt to manage risk from changes in market interest rates, in part, by controlling the mix of interest rate sensitive assets
and interest rate sensitive liabilities. However, interest rate risk management techniques are not exact and a rapid increase
or decrease in interest rates could adversely affect our financial performance. In the event that one or more of these factors
were to result
in a decrease in our net interest income, we do not have significant sources of fee income to make up for decreases
in net interest income.
The
planned phasing out of LIBOR as a financial benchmark presents risks to the financial instruments originated or held by the Corporation.
The
London Interbank Offered Rate (“LIBOR”) is the reference rate used for many of the Corporation’s transactions,
including variable and adjustable rate loans and borrowings. However, a reduced volume of interbank unsecured term borrowing,
coupled with recent legal and regulatory proceedings related to rate manipulation by certain financial institutions, has led to
international reconsideration of LIBOR as a financial benchmark. The United Kingdom Financial Conduct Authority (“FCA”),
which regulates the process for establishing LIBOR, announced in July 2017 that the sustainability of LIBOR cannot be guaranteed.
Accordingly, the FCA intends to stop persuading, or compelling, banks to submit rates for the calculation of LIBOR after 2021.
Regulators,
industry groups and certain communities (e.g., the Alternative Reference Rates Committee) have, among other things, published
recommended fallback language LIBOR-linked financial instruments, identified recommended alternatives for certain LIBOR rates
(e.g., the Secured Overnight Financing Rate as the recommended alternative to U.S. Dollar LIBOR), and proposed implementations
of the recommended alternatives in floating rate instruments. At this time, it is not possible to predict whether these recommendations
and proposals will be broadly accepted, whether they will continue to evolve, and what the effect of their implantation may be
on the markets for floating rate financial instruments. The uncertainty surrounding potential reforms, including the use of alternative
reference rates and changes to the methods and processes used to calculate rates, may have an adverse effect on the trading market
for LIBOR-based securities, loan yields, and the amount received and paid on derivative contracts and other financial instruments.
In addition, the implementation of LIBOR reform proposals may result in increased compliance and operational costs.
We
operate in a highly regulated environment and may be adversely affected by changes in laws and regulations.
The
banking industry is heavily regulated, and such regulations are intended primarily for the protection of depositors and the federal
deposit insurance fund, not shareholders. As a bank holding company, we are subject to regulation by the Federal Reserve. Our
bank subsidiary is also regulated by the Federal Deposit Insurance Corporation, or FDIC, and is subject to regulation by the Pennsylvania
Department of Banking and Securities and recently, by regulations promulgated by the Consumer Financial Protection Bureau (CFPB)
as to consumer financial services and products. These regulations affect lending practices, capital structure, investment practices,
dividend policy, and growth. In addition, we have non-bank operating subsidiaries from which we derive income. One of these non-bank
subsidiaries, Codorus Valley Financial Advisors, Inc. d/b/a PeoplesWealth Advisors, engages in providing investment management
and insurance brokerage services, industries that are also heavily regulated on both a state and federal level. In addition, newly
enacted and amended laws, regulations, and regulatory practices affecting the financial service industry may result in higher
capital requirements, higher insurance premiums and limit the manner in which we may conduct our business. Such changes may adversely
affect us, including our ability to offer new products and services, obtain financing, attract deposits, make loans and leases
and achieve satisfactory spreads, and may also result in the imposition of additional costs on us. As a public corporation, we
are also subject to the corporate governance standards set forth in the Sarbanes-Oxley Act of 2002, as well as any applicable
rules or regulations promulgated by the SEC and The NASDAQ Global Market.
Compliance
with such current and potential regulation and scrutiny may significantly increase our costs, impede the efficiency of our internal
business processes, affect retention of key personnel, require us to increase our regulatory capital, require us to invest significant
management attention and resources and limit our ability to pursue business opportunities in an efficient manner.
Additional
requirements imposed by the Dodd-Frank Act could increase our costs of operations.
The
Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, has significantly changed the current bank regulatory
structure and affected the lending, deposit, investment, trading and operating activities of financial institutions and their
holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new rules and regulations, and
to prepare numerous studies and reports for Congress. The federal agencies are given significant discretion in drafting the implementing
rules and regulations, and consequently, some of the details and impact of the Dodd-Frank Act may not yet be known. Our operating
and compliance costs have materially increased and it is expected that the legislation and implementing regulations will continue
to increase our operating and compliance costs.
The
Dodd-Frank Act created the Consumer Financial Protection Bureau, or CFPB, as an independent bureau of the Federal Reserve with
broad powers to supervise and enforce consumer protection laws. In addition, the CFPB has rule-making authority for a wide range
of consumer protection laws that apply to all banks and savings institutions, including the authority to prohibit “unfair,
deceptive or abusive” acts and practices. The CFPB’s qualified mortgage rule, or “QM Rule,” became effective
on January 10, 2014. The QM Rule is designed to clarify how lenders can manage the potential legal liability under the Dodd-Frank
Act, which would hold lenders accountable for insuring a borrower’s ability to repay a mortgage. Loans that meet the definition
of “qualified mortgage” will be presumed to have complied with the new ability-to-repay standard. The QM Rule and
similar rules could limit the Bank’s ability to make certain types of loans or loans to certain borrowers, or could make
it more expensive and time-consuming to make these loans, which could limit the Bank’s growth or profitability.
The
Dodd-Frank Act requires publicly traded companies to give stockholders a non-binding vote on executive compensation and so-called
“golden parachute” payments. It also provides that the listing standards of the national securities exchanges shall
require listed companies to implement and disclose “clawback” policies mandating the recovery of incentive compensation
paid to executive officers in connection with accounting restatements. The Dodd-Frank Act also directs the Federal Reserve to
promulgate rules prohibiting excessive compensation paid to bank holding company executives. Compliance with these rules will
likely increase our overall regulatory compliance costs and may have an adverse effect on our ability to recruit and retain executive
officers for the Corporation and the Bank.
We
recently became subject to more stringent capital requirements.
The
Dodd-Frank Act required the federal banking agencies to establish minimum leverage and risk-based capital requirements for insured
banks and their holding companies. The federal banking agencies issued a joint final rule, or the Final Capital Rule, that implements
the Basel III capital standards and establishes the minimum capital levels required under the Dodd-Frank Act. Certain capital
requirements mandated by the Final Capital Rule became effective January 1, 2015. The Final Capital Rule establishes a minimum
common equity Tier I capital ratio of 6.5 percent of risk-weighted assets for a “well capitalized” institution
and increases the minimum Tier I capital ratio for a “well capitalized” institution from 6 percent to 8 percent.
Additionally, the Final Capital Rule requires an institution to maintain a 2.5 percent common equity Tier I capital
conservation buffer over the 6.5 percent minimum risk-based capital requirement for “adequately capitalized”
institutions, or face restrictions on the ability to pay dividends, discretionary bonuses, and engage in share repurchases. For
bank holding companies under $15 billion in assets as of December 31, 2009, the Final Capital Rule permanently grandfathers
trust preferred securities issued before May 19, 2010, subject to a limit of 25 percent of Tier I capital. The
Final Capital Rule increases the required capital for certain categories of assets, including high-volatility construction real
estate loans and certain exposures related to securitizations; however, the Final Capital Rule retains the current capital treatment
of residential mortgages. Implementation of these standards, or any other new regulations, may adversely affect our ability to
pay dividends, or require us to reduce business levels or raise capital, including in ways that may adversely affect our results
of operations or financial condition.
The
soundness of other financial services institutions may adversely affect our credit risk.
Our
ability to engage in funding transactions could be adversely affected by the actions and failure of other financial institutions.
Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships. We have
exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial
services industry, including brokers and dealers, commercial banks, investment banks, mutual funds, and other institutional clients.
As a result, defaults by, or even questions or rumors about, one or more financial services institutions, or the financial services
industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or other institutions.
Many of these transactions expose us to operational and credit risk in the event of default of our counterparty or client. In
addition, our credit risk may be exacerbated when the collateral held by us cannot be realized upon or is liquidated at prices
not sufficient to recover the full amount of the loan or derivative exposure due us. Losses related to these credit risks could
materially and adversely affect our results of operations or earnings.
We
are required to make a number of judgments in applying accounting policies and different estimates and assumptions in the application
of these policies could result in a decrease in capital and/or other material changes to our reports of financial condition and
results of operations.
Material
estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses
and reserve for unfunded lending commitments, the effectiveness of derivatives and other hedging activities, and the fair value
of certain financial instruments (securities, derivatives, and privately held investments), income tax assets or liabilities (including
deferred tax assets and any related valuation allowance), and share-based compensation. While we have identified those accounting
policies that are considered critical and have procedures in place to facilitate the associated judgments, different assumptions
in the application of these policies could result in a decrease to net income and, possibly, capital and may have a material adverse
effect on our financial condition and results of operations.
From
time to time, the Financial Accounting Standards Board, or FASB, and the SEC change the financial accounting and reporting guidance
that governs the preparation of our financial statements. These changes are beyond our control, can be difficult to predict, and
could materially impact how we report our financial condition and results of operations. We could be required to apply new or
revised guidance retrospectively, which may result in the revision of prior financial statements by material amounts. The implementation
of new or revised guidance could result in material adverse effects to our reported capital.
We
may elect or need to seek additional capital in the future, but that capital may not be available when needed.
We
are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. In
the future, we may elect or need to raise additional capital. Our ability to raise additional capital, if needed, will depend
on conditions in the capital markets at that time, which are outside our control, and on our financial performance. Accordingly,
we cannot assure you of our ability to raise additional capital if needed on acceptable terms. If we cannot raise additional capital
when needed, our ability to expand our operations through internal growth or acquisitions could be materially impaired.
Risks
associated with system failures, interruptions, or breaches of security could negatively affect our earnings. Information technology
systems are critical to our business.
We
use various technology systems to manage our client relationships, general ledger, securities investments, deposits, and loans.
Business disruptions can occur due to forces beyond our control such as severe weather, power or telecommunications loss, accidents,
cyberattacks, terrorism, health emergencies, the spread of infectious diseases or pandemics. We have established policies and
procedures to prevent or limit the impact of system failures, interruptions, and security breaches (including privacy breaches
and cyber-attacks), but such events may still occur or may not be adequately addressed if they do occur. In addition, any compromise
of our systems could deter clients from using our products and services. Although we take protective measures, the security of
our computer systems, software, and networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses, or
other malicious code and cyber-attacks that could have an impact on information security.
In
addition, we outsource a significant amount of our data processing to certain third-party providers. If these third-party providers
encounter difficulties, or if we have difficulty communicating with them, our ability to adequately process and account for transactions
could be affected, and our business operations could be adversely affected. While we have selected these third party vendors carefully,
we do not control their actions. Any problems caused by these third parties, including as a result of their not providing us their
services for any reason or their performing their services poorly, could adversely affect our ability to deliver products and
services to our clients or otherwise conduct our business efficiently and effectively. Replacing these third party vendors could
also entail significant delay and expense. Threats to information security also exist in the processing of client information
through various other vendors and their personnel.
There
have been increasing efforts on the part of third parties, including through cyber-attacks, to breach data security at financial
institutions or with respect to financial transactions. There have been several recent instances involving financial services
and consumer-based companies reporting the unauthorized disclosure of client or customer information or the destruction or theft
of corporate data. In addition, because the techniques used to cause such security breaches change frequently, often are not recognized
until launched against a target and may originate from less regulated and remote areas around the world, we may be unable to proactively
address these techniques or to implement adequate preventative measures. The ability of our clients to bank remotely, including
online and through mobile devices, requires secure transmission of confidential information and increases the risk of data security
breaches.
The
occurrence of any system failures, interruption, or breach of security could damage our reputation and result in a loss of clients
and business thereby subjecting us to additional regulatory scrutiny, or could expose us to litigation and possible financial
liability. Any of these events could have a material adverse effect on our financial condition and results of operations.
Our
controls and procedures may fail or could be circumvented.
Management
regularly reviews and updates our internal controls, disclosure controls and procedures, and corporate governance policies and
procedures in order to ensure accurate financial control and reporting. Any system of controls, no matter how well designed and
operated, can only provide reasonable, not absolute assurance that the objectives of the system are met. Any failure or circumvention
of our controls and/or procedures could have a material adverse effect on our business and results of operation and financial
condition.
We
may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional
violations.
We
maintain systems and procedures designed to ensure that we comply with applicable laws and regulations. However, some legal/regulatory
frameworks provide for the imposition of fines or penalties for noncompliance even though the noncompliance was inadvertent or
unintentional and even though there was in place at the time systems and procedures designed to ensure compliance. For example,
we are subject to regulations issued by the Office of Foreign Assets Control, or OFAC, that prohibit financial institutions from
participating in the transfer of property belonging to the governments of certain foreign countries and designated nationals of
those countries. OFAC may impose penalties for inadvertent or unintentional violations even if reasonable processes are in place
to prevent the violations. There may be other negative consequences resulting from a finding of noncompliance, including restrictions
on certain activities. Such a finding may also damage our reputation as described below and could restrict the ability of institutional
investment managers to invest in our securities.
The
inability to hire or retain key personnel could adversely affect our business.
Our
success is dependent upon our ability to attract and retain highly skilled individuals. We face intense competition from various
other financial institutions, as well as from non-bank providers of financial services, such as credit unions, brokerage firms,
insurance agencies, consumer finance companies and government organizations, for the attraction and retention of key personnel,
specifically those who generate and maintain our client relationships and serve in other key operation positions in the areas
of finance, credit oversight and administration, and wealth management. These competitors may offer greater compensation and benefits,
which could result in the loss of potential and/or existing substantial client relationships and may adversely affect our ability
to compete effectively. The unexpected loss of services of one or more of these or other key personnel could have a material adverse
impact on our business because of their skills, knowledge of the markets in which we operate, years of industry experience and
the difficulty of promptly finding qualified replacement personnel.
Damage
to our reputation could significantly harm our business, including our competitive position and business prospects.
We
are dependent on our reputation within our market area, as a trusted and responsible financial corporation, for all aspects of
our relationships with clients, employees, vendors, third-party service providers, and others, with whom we conduct business or
potential future business. Our ability to attract and retain clients and employees could be adversely affected if our reputation
is damaged. Our actual or perceived failure to address various issues could give rise to reputational risk that could cause harm
to us and our business prospects. These issues also include, but are not limited to, legal and regulatory requirements; properly
maintaining client and employee personal information; record keeping; money-laundering; sales and trading practices; ethical issues;
appropriately addressing potential conflicts of interest; and the proper identification of the legal, reputational, credit, liquidity
and market risks inherent in our products. Failure to appropriately address any of these issues could also give rise to additional
regulatory restrictions and legal risks, which could, among other consequences, increase the size and number of litigation claims
and damages asserted or subject us to enforcement actions, fines and penalties and incur related costs and expenses.
We
continually encounter technological change, and we may have fewer resources than our competitors to continue to invest in technological
improvements, which could reduce our ability to effectively compete.
Our
future success depends, in part, on our ability to effectively embrace technological efficiencies to better serve clients and
reduce costs. Many of our competitors have substantially greater resources to invest in technological improvements. There can
be no assurance that we will be able to effectively implement new technology-driven products and services, which could reduce
our ability to effectively compete. Failure to keep pace with technological change could potentially have an adverse effect on
our business operations and financial condition.
Competition
from other financial institutions in originating loans, attracting deposits and providing various financial services may adversely
affect our profitability.
Our
banking subsidiary faces substantial competition in originating loans, both commercial and consumer. This competition comes principally
from other banks, savings institutions, mortgage banking companies, and other lenders. Many of our competitors enjoy advantages
over us, including greater financial resources and higher lending limits, a wider geographic presence, more accessible branch
office locations, the ability to offer a wider array of services or more favorable pricing alternatives, as well as lower origination
and operating costs. This competition could reduce our net income by decreasing the number and size of loans that our banking
subsidiary originates and the interest rates it may charge on these loans.
In
attracting business and consumer deposits, our bank subsidiary faces substantial competition from other insured depository institutions
such as banks, savings institutions and credit unions, as well as institutions offering uninsured investment alternatives, including
money market funds. Many of our competitors enjoy advantages over us, including greater financial resources, more aggressive marketing
campaigns and better brand recognition and more branch locations. These competitors may offer higher interest rates than we do,
which could decrease the deposits that we attract or require us to increase our rates to retain existing deposits or attract new
deposits. Increased deposit competition could adversely affect our ability to generate the funds necessary for lending operations.
As a result, we may need to seek other sources of funds that may be more expensive to obtain and could increase our cost of funds.
Our
banking and non-banking subsidiaries also compete with non-bank providers of financial services, such as brokerage firms, consumer
finance companies, credit unions, insurance companies and governmental organizations which may offer more favorable terms. Some
of our non-bank competitors are not subject to the same extensive regulations that govern our banking operations. As a result,
such non-bank competitors may have advantages over our banking and non-banking subsidiaries in providing certain products and
services. This competition may reduce or limit our margins on banking and non-banking services, reduce our market share, and adversely
affect our earnings and financial condition.
We
may not be able to successfully maintain and manage our growth.
We
continue to execute on our acquisition and organic branching initiatives, which are intended to develop our branch infrastructure
in a manner more consistent with the expansion of lending markets and to fill in and grow our branch footprint. As we continue
to grow through our acquisitions, branching and other strategic initiatives, we cannot be certain as to our ability to manage
increased levels of assets and liabilities. We may be required to make additional investments in equipment and personnel to manage
higher asset levels and loans balances, which may adversely impact our efficiency ratio, earnings and shareholder returns.
The
financial impact and difficulties in integrating future acquisitions could adversely affect our business.
The
efficient and effective integration of any businesses we acquire into our organization is critical to the financial success of
an acquisition transaction. Any future acquisitions involve numerous risks, including difficulties in integrating the culture,
operations, technologies and personnel of the acquired companies, the diversion of management’s attention from other business
concerns and the potential loss of clients. Failure to successfully integrate the operations of any future acquisitions could
also harm our business, results of operations and cash flows.
Risks
Related to Our Common Stock
The
market price of our common stock may fluctuate significantly, and this may make it difficult for you to resell shares of common
stock owned by you at times or at prices you find attractive.
The
market price of our common stock on the NASDAQ Global Market constantly changes. We expect that the market price of our common
stock will continue to fluctuate and there can be no assurance about the market prices for our common stock.
Stock
price volatility may make it difficult for you to resell your common stock when you want and at prices you find attractive. Our
stock price may fluctuate significantly as a result of a variety of factors, many of which are beyond our control. These factors
include, among others:
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actual
or anticipated variations in quarterly results of operations or quality of our assets;
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recommendations
by securities analysts;
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operating
and stock price performance of other companies that investors deem comparable to us;
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any
failure to pay dividends on our common stock or a reduction in cash dividends;
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continued
levels of loan quality and volume origination;
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the
adequacy of loan loss reserves;
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the
willingness of clients to substitute competitors’ products and services for our
products and services and vice versa, based on price, quality, relationship or otherwise;
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interest
rate, market and monetary fluctuations;
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declines
in the fair value of our available-for-sale securities that are deemed to be other-than-temporarily
impaired;
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the
timely development of competitive new products and services by us and the acceptance
of such products and services by clients;
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changes
in consumer spending and saving habits relative to the financial services we provide;
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relationships
with major clients;
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our
ability to continue to grow our business internally and through acquisition and successful
integration of new or acquired entities while controlling costs;
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news
reports relating to trends, concerns and other issues in the financial services industry,
including the failures of other financial institutions in the current economic downturn;
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perceptions
in the marketplace regarding us and/or our competitors;
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rapidly
changing technology, or new technology used, or services offered, by competitors;
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changes
in accounting principles, policies and guidelines;
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significant
acquisitions or business combinations, strategic partnerships, joint ventures or capital
commitments by or involving us or our competitors;
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failure
to integrate acquisitions or realize anticipated benefits from acquisitions;
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changes
in and compliance with laws and government regulations of federal, state and local agencies;
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effects
of climate change;
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geopolitical
conditions such as acts or threats of terrorism or military conflicts;
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natural
disasters or severe weather conditions;
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health
emergencies, the spread of infectious diseases or pandemics;
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cyber
breaches or breaches of physical premises, including data centers;
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failure
to retain or attract key personnel;
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operating
results that vary from the expectations of management, analysts and investors;
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future
sales of our equity or equity-related securities;
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the
credit, mortgage and housing markets, the markets for securities relating to mortgages
or housing, and developments with respect to financial institutions generally; and
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the
relatively low trading volume of our common stock.
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General
market fluctuations, industry factors and general economic and political conditions and events, such as economic slowdowns or
recessions, interest rate changes or credit loss trends, could also cause our stock price to decrease regardless of operating
results as evidenced by the current volatility and disruption of capital and credit markets.
The
trading volume of our common stock may not provide adequate liquidity for investors and is less than that of other financial services
companies.
Our
common stock is listed under the symbol “CVLY” on the NASDAQ Global Market. The average daily trading volume for shares
of our common stock is less than larger financial institutions. As a result, sales of our common stock may place significant downward
pressure on the market price of our common stock. Furthermore, it may be difficult for holders to resell their shares at prices
they find attractive, or at all.
We
may issue additional common stock or other equity securities in the future which could dilute the ownership interest of existing
shareholders.
In
order to maintain our capital at desired or regulatory-required levels or to replace existing capital, we may be required to issue
additional shares of common stock, or securities convertible into, exchangeable for or representing rights to acquire shares of
common stock. Generally, we are not restricted from issuing such additional shares. We may sell any shares that we issue at prices
below the current market price of our common stock, and the sale of these shares may significantly dilute shareholder ownership.
We could also issue additional shares in connection with acquisitions of other financial institutions or in connection with our
equity compensation plans. Additional equity offerings may dilute the holdings of our existing shareholders or reduce the market
price of our common stock, or both.
Offerings
of debt and/or preferred equity securities may adversely affect the market price of our common stock.
We
may attempt to increase our capital resources or, if our or our subsidiary bank’s capital ratios fall below the required
minimums, we could be forced to raise additional capital by making additional offerings of debt or preferred equity securities,
including medium-term notes, trust preferred securities, senior or subordinated notes and preferred stock. Upon liquidation, holders
of our debt securities and shares of preferred stock and lenders with respect to other borrowings are likely to receive distributions
of our available assets prior to the holders of our common stock. Additional equity offerings may dilute the holdings of our existing
shareholders or reduce the market price of our common stock, or both. Holders of our common stock are not entitled to preemptive
rights or other protections against dilution.
Our
board of directors is authorized to issue one or more classes or series of preferred stock from time to time without any action
on the part of the shareholders. Our board of directors also has the power, without shareholder approval, to set the terms of
any such classes or series of preferred stock that may be issued, including voting rights, dividend rights, and preferences over
our common stock with respect to dividends or upon our dissolution, winding up and liquidation and other terms. If we issue preferred
stock in the future that has a preference over our common stock with respect to the payment of dividends or upon our liquidation,
dissolution or winding up, or if we issue preferred stock with voting rights that dilute the voting power of our common stock,
the rights of holders of our common stock or the market price of our common stock could be adversely affected.
Our
common stock is subordinate to our existing and future indebtedness and preferred stock, and effectively subordinated to all the
indebtedness and other non-common equity claims against our subsidiaries.
Shares
of our common stock are equity interests in us and do not constitute indebtedness. As such, shares of our common stock rank junior
to all of our indebtedness and to other non-equity claims against us and our assets available to satisfy claims against us, including
in our liquidation. Additionally, holders of our common stock could be subject to the prior dividend and liquidation rights of
holders of our preferred stock. Furthermore, our right to participate in a distribution of assets upon any of our subsidiaries’
liquidation or reorganization is subject to the prior claims of that subsidiary’s creditors.
We
may attempt to increase our capital resources or, if our or the Bank’s capital ratios fall below the required minimums,
we could be forced to raise additional capital by making additional offerings of debt or preferred equity securities, including
medium-term notes, trust-preferred securities, senior or subordinated notes and preferred stock. Upon liquidation, holders of
our debt securities and shares of preferred stock and lenders with respect to other borrowings are likely to receive distributions
of our available assets prior to the holders of our common stock.
We
are currently authorized to issue up to 30,000,000 shares of common stock of which 9,763,713 shares were outstanding
as of April 24, 2020, and up to 1,000,000 shares of preferred stock, none of which were outstanding as of April 24,
2020. Our board of directors has authority, without action or vote of the shareholders of common stock, to issue all or part of
the authorized but unissued shares. Authorized but unissued shares of our common stock or preferred stock could be issued on terms
or in circumstances that could dilute the interests of other shareholders.
Regulatory
and contractual restrictions may limit or prevent us from paying dividends or repurchasing, or we may choose not to pay dividends
on or repurchase, our common stock.
The
Corporation is an entity separate and distinct from its principal subsidiary, PeoplesBank, and we derive substantially all of
our revenue in the form of dividends from that subsidiary. Accordingly, we are and will be dependent upon dividends from PeoplesBank
to pay the principal of and interest on our indebtedness, to satisfy our other cash needs and to pay dividends on our common and
preferred stock. The Bank’s ability to pay dividends is subject to its ability to earn net income and to meet certain regulatory
requirements. In the event PeoplesBank is unable to pay dividends to us, we may not be able to pay dividends on our common or
preferred stock. Also, our right to participate in a distribution of assets upon a subsidiary’s liquidation or reorganization
is subject to the prior claims of the subsidiary’s creditors, including those of its depositors.
As
described below in the next risk factor, the terms of our outstanding junior subordinated debt securities prohibit us from paying
dividends on or repurchasing our common stock at any time when we have elected to defer the payment of interest on such debt securities
or certain events of default under the terms of those debt securities have occurred and are continuing. These restrictions could
have a negative effect on the value of our common stock. Moreover, holders of our common stock are entitled to receive dividends
only when, as and if declared by our board of directors.
Although
we have historically paid cash dividends on our common stock, we are not required to do so and our board of directors could reduce,
suspend or eliminate our common stock cash dividend in the future. No determination has been made by our board of directors regarding
whether or what amount of dividends will be paid in future quarters. Additionally, there can be no assurance that regulatory approval
will be granted by the Federal Reserve Board to pay dividends. Future payment of cash dividends, if any, will be at the discretion
of our board of directors and will be dependent upon our financial condition, results of operations, capital requirements and
such other factors as the board may deem relevant and will be subject to applicable federal and state laws that impose restrictions
on our and our bank subsidiary’s ability to pay dividends, as well as guidance issued from time to time by regulatory authorities.
Under
guidance issued by the Federal Reserve, as a bank holding company we are to consult the Federal Reserve before declaring dividends
and are to strongly consider eliminating, deferring, or reducing dividends we pay to our shareholders if (1) our net income
available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to
fully fund the dividends, (2) our prospective rate of earnings retention is not consistent with our capital needs and overall
current and prospective financial condition, or (3) we will not meet, or are in danger of not meeting, our minimum regulatory
capital adequacy ratios.
Under
additional supervisory guidance issued by the Federal Reserve in June, 2020, in response to the ongoing COVID-19 pandemic, the
Federal Reserve is requiring large banks ($100 billion or more in assets) for the third quarter of 2020 to preserve capital by
suspending share repurchases, capping dividend payments to the amount paid in the second quarter and is further limiting dividends
to an amount based on recent earnings. While the Corporation and PeoplesBank are not subject to this supervisory guidance, we
cannot predict whether guidance of this type will become applicable to the Corporation and PeoplesBank in the future.
If
we defer payments of interest on our outstanding junior subordinated debt securities or if certain defaults relating to those
debt securities occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation
payments with respect to, our common stock.
As
of March 31, 2020, we had $10,310,000 outstanding aggregate principal amount of junior subordinated debt securities issued
in connection with the sale of trust preferred securities by certain of our subsidiaries that are statutory business trusts. We
have also guaranteed those trust preferred securities. There are currently two separate series of these junior subordinated debt
securities outstanding, each series having been issued under a separate indenture and with a separate guarantee. Each of these
indentures, together with the related guarantee, prohibits us, subject to limited exceptions, from declaring or paying any dividends
or distributions on, or redeeming, repurchasing, acquiring or making any liquidation payments with respect to, any of our capital
stock at any time when (i) there shall have occurred and be continuing an event of default under the indenture or any event,
act or condition that with notice or lapse of time or both would constitute an event of default under the indenture; or (ii) we
are in default with respect to payment of any obligations under the related guarantee; or (iii) we have deferred payment
of interest on the junior subordinated debt securities outstanding under that indenture. In that regard, we are entitled, at our
option but subject to certain conditions, to defer payments of interest on the junior subordinated debt securities of each series
from time to time for up to five years.
Events
of default under each indenture generally consist of our failure to pay interest on the junior subordinated debt securities outstanding
under that indenture under certain circumstances, our failure to pay any principal of or premium on such junior
subordinated debt
securities when due, our failure to comply with certain covenants under the indenture, and certain events of bankruptcy, insolvency
or liquidation relating to us or the Bank.
As
a result of these provisions, if we were to elect to defer payments of interest on any series of junior subordinated debt securities,
or if any of the other events described in clause (i) or (ii) of the first paragraph of this risk factor were to occur, we
would be prohibited from declaring or paying any dividends on our common stock, from redeeming, repurchasing or otherwise acquiring
any of our common stock, and from making any payments to holders of our common stock in the event of our liquidation, which would
likely have a material adverse effect on the market value of our common stock. Moreover, without notice to or consent from the
holders of our common stock, we may issue additional series of junior subordinated debt securities in the future with terms similar
to those of our existing junior subordinated debt securities or enter into other financing agreements that limit our ability to
purchase or to pay dividends or distributions on our capital stock, including our common stock.
Our
common stock is not insured by any governmental entity.
Our
common stock is not a deposit account or other obligation of any bank and, therefore, is not insured against loss by the FDIC,
any other deposit insurance fund, any other governmental entity or by any other public or private entity. Investment in our common
stock is inherently risky for the reasons described in this “Risk Factors” section and elsewhere in this document
and our other filings with the SEC, and is subject to the same market forces that affect the price of common stock in any company.
As a result, if you acquire our common stock, you may lose some or all of your investment.
Anti-takeover
provisions and restrictions on ownership could negatively impact our shareholders.
Provisions
of federal and Pennsylvania law and our amended and restated articles of incorporation and bylaws could make it more difficult
for a third party to acquire control of us or have the effect of discouraging a third party from attempting to acquire control
of us. These provisions could make it more difficult for a third party to acquire us even if an acquisition might be in the best
interest of our shareholders. In addition, the Bank Holding Company Act of 1956, as amended, or the BHCA, requires any bank holding
company to obtain the approval of the Federal Reserve prior to acquiring more than 5 percent of our outstanding common stock.
Any person other than a bank holding company is required to obtain prior approval of the Federal Reserve to acquire 10 percent
or more of our outstanding common stock under the Change in Bank Control Act. Any holder of 25 percent or more of our outstanding
common stock, other than an individual, is subject to regulation as a bank holding company under the BHCA.
Our
articles of incorporation and bylaws contain certain provisions that may have the effect of deterring or discouraging an attempt
to take control of the Corporation. Among other things, these provisions:
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empower
our board of directors, without shareholder approval, to issue shares of our preferred
stock the terms of which, including voting power, are set by our board;
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divide
our board of directors into three classes serving staggered three year terms;
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authorize
our board of directors to oppose a tender or other offer for the Corporation’s
securities if the board determines that such an offer should be rejected;
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require
the affirmative vote of holders of at least 75 percent of the outstanding shares
of our common stock to approve a merger, consolidation, liquidation or dissolution of
the Corporation, or any sale or other disposition of all or substantially all of the
assets of the Corporation, excepting transactions described above that are approved by
at least 80 percent of the members of the Board of Directors, where such transactions
shall require only such shareholder approval, if any, as may be required pursuant to
the Pennsylvania Business Corporation Law as in effect from time to time.
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eliminate
cumulative voting in the election of directors; and
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require
advance notice of nominations for the election of directors and the presentation of shareholder
proposals at meetings of shareholders.
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Risks
Related to the Offering
You
will have a minimal influence on shareholder decisions.
Together,
our directors and executive officers beneficially hold 493,602 shares, representing 5.00% of the total number of shares outstanding
as of February 26, 2020. Further, this percentage of ownership could increase if our directors and officers participate in
the Plan. Our directors and officers are able to significantly influence our management policies and decisions as well as issues
that require a shareholder vote. If our directors and executive officers vote together, they could influence the outcome of certain
corporate actions requiring shareholder approval, including the election of directors and the approval or non-approval of significant
corporate transactions, such as the merger or sale of all of substantially all of our assets. Their interests may differ from
the interests of other shareholders with respect to management issues.
Possible
future sales of our common stock by our directors and executive officers could cause the market value of our common stock to decline.
Sales
of additional shares of our stock, or the perception that shares may be sold by directors and executive officers of the Corporation,
could negatively affect the market price of our stock.
Our
issuance of additional shares of common stock could dilute or depress the value of your shares.
The
Corporation’s Articles of Incorporation authorize the issuance of up to 30,000,000 shares of common stock and up to
1,000,000 shares of preferred stock. The issuance of additional stock within these limits will not require prior shareholder
approval. Sales of additional shares of stock, or the perception that shares may be sold, could negatively affect the market price
of the Corporation’s stock. The issuance of additional shares could also dilute the percentage ownership interest and corresponding
voting power of the prior shareholders.
The
price of common stock may fluctuate.
You
do not have control or authority to direct the price or time at which common stock is purchased or sold for Plan accounts. Therefore,
you bear the market risk associated with fluctuations in the price of common stock. The Plan Administrator will allocate shares
purchased to 3 decimal places; thus, there will likely always be a partial share in your plan account. This practice allows
maximum investment of your dividends.
EXPLANATION
OF THE DIVIDEND REINVESTMENT
AND STOCK PURCHASE PLAN
An
explanation of the Plan follows. The Plan is contained in a written Plan instrument, a copy of which is maintained at the offices
of the Corporation, as well as at the offices of the Plan Administrator. In the event of any inconsistency between that Plan instrument
and this explanation, the Plan instrument will control. The Plan does not represent a change in our dividend policy, which will
continue to depend upon earnings, financial and regulatory requirements and other factors, and which will be determined by our
Board of Directors from time to time. Shareholders who do not wish to participate in this Plan will continue to receive cash dividends
when and as declared. We cannot provide any assurance whether, or at what rate, we will continue to pay dividends.
Purpose
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1.
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What
is the purpose of the Plan?
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The
purpose of the Plan is to provide holders of the Corporation’s common stock with a convenient and economical method of investing
cash dividends payable upon their common stock and voluntary cash payments in additional shares of common stock. To the extent
that the additional shares are purchased directly from the Corporation under the Plan, the Corporation will receive additional
funds for its general corporate purposes.
Advantages
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2.
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What
are the advantages of the Plan?
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Participation
in the Plan offers a number of advantages:
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The
Plan enables the shareholders to acquire additional shares of common stock without the
payment of brokerage commissions.
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The
Plan provides shareholders of the Corporation with the opportunity to reinvest their
dividends automatically in additional shares of common stock. The Plan also provides
shareholders with the opportunity to make additional voluntary cash payments, within
specified limits, to purchase additional shares of common stock without the payment of
any service charges or brokerage commissions.
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Participants
may deposit their physically held common stock certificate(s), at no cost, with the Plan
Administrator.
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Participants’
funds will be fully utilized through the crediting of fractional shares of stock to their
accounts under the Plan. Because the shares of stock are held in their Plan account,
participants avoid cumbersome safekeeping and record keeping costs through the free custodial
and reporting services furnished under the Plan.
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Participants
will receive periodic statements of the transactions for their accounts under the Plan.
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Administration
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3.
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Who
administers the Plan for participants?
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Equiniti
Trust Company d/b/a EQ Shareowner Services (the “Plan Administrator”) administers the Plan as agent for the participants.
In such capacity, the Plan Administrator will send periodic statements of account to participants and perform other administrative
duties relating to the Plan. Shares purchased for a participant under the Plan will be held by the Plan Administrator and registered
in its name or the name of its nominee.
Any
notices, questions or other communications relating to the Plan should include the participant’s account number and should
be addressed to one of the following:
Contact
Information:
Internet:
shareowneronline.com
Available
24 hours a day, 7 days a week for access to account information and answers to many common questions and general inquiries.
To
enroll in the Plan:
For
existing registered shareowners:
1. Go
to shareowneronline.com
2. Select
Register then Register for Online Access
3. Enter
your Company Name, Authentication ID* and Account Number
*If
you do not have your Authentication ID, select I don’t know and complete the online form to have it sent to you.
For security, this number is required for first time sign on.
Email:
Go
to shareowneronline.com and select Contact Us.
Telephone:
1-800-468-9716
Toll-Free
651-450-4064
outside the United States
Customer
Care Specialists are available Monday through Friday, from 7:00 a.m. to 7:00 p.m. Central Time.
You
may also access your account information 24 hours a day, 7 days a week using our automated voice response system.
Written
correspondence and deposit of certificated shares*:
EQ
Shareowner Services
P.O.
Box 64856
St.
Paul, MN 55164-0856
Certified
and Overnight delivery:
EQ
Shareowner Services
1110
Centre Pointe Curve, Suite 101
Mendota
Heights, MN 55120-4100
*If
sending in a certificate for deposit, see the Certificate Deposit and Withdrawal information,
Participation
|
4.
|
Who
is eligible to participate in the Plan?
|
Generally,
holders of common stock of the Corporation will be eligible to participate in the Plan. However, the Corporation may refuse to
offer the Plan to various shareholders of the Corporation for any reason, including for the reason that the state in which the
shareholder resides may require registration, qualification or exemption of the common stock to be issued under the Plan, or registration
or qualification of the Corporation or any of its officers or employees as a broker, dealer, salesman or agent. Also, persons,
other than the Bank or the Bank’s Trust Department, who beneficially own four percent (4%) or more of the Corporation’s
common stock are prohibited from enrolling in the Plan. Participants, other than the Bank or the Bank’s Trust Department,
who become beneficial owners of four percent (4%) or more of the Corporation’s common stock will be terminated from further
participation in the Plan.
Subject
to the limitations, participants in the Plan may make voluntary cash payments of not less than $25.00 per payment or more than
$25,000.00 per quarter.
|
5.
|
How
does an eligible shareholder become a participant in the Plan?
|
If
your shares are currently registered in your name with Codorus Valley, not held by your broker or bank in their name, you can
enroll through shareowneronline.com or by submitting an Account Authorization Card by mail (see Contact Information).
|
6.
|
Must
a shareholder authorize dividend reinvestment on a minimum number of shares?
|
No.
There is no minimum number of shares required for participation in the Plan. However, a shareholder may participate in the Plan
only with respect to all of his or her shares of the Corporation’s common stock; that is, a shareholder may not participate
in the Plan with respect to fewer than all of his or her shares of common stock.
Purchases
|
7.
|
How
are shares of common stock acquired under the Plan?
|
Cash
dividends payable upon the Corporation’s common stock held by persons participating in the Plan will be paid to the Plan
Administrator. The dividends paid to the Plan Administrator will not include any applicable taxes withheld by the Corporation.
The Plan Administrator will pool these cash dividends together with all voluntary cash payments received and, with respect to
shares to be purchased on the open market, will transfer them to an independent purchasing agent (the “Plan Purchasing Agent”),
which will be a broker-dealer registered under the Securities Exchange Act of 1934. The Plan Purchasing Agent will use the funds
to purchase shares of the Corporation’s common stock on the open market for the Plan accounts of the participants. Alternatively,
the Plan Administrator will acquire shares directly from the Corporation or pursuant to certain negotiated transactions, a combination
of the foregoing methods may be used as the Corporation directs. In any event, each participant’s account will be credited
with the purchased shares. Shares purchased from the Corporation will be authorized but unissued shares of its common stock.
|
8.
|
When
will shares of common stock be purchased under the Plan?
|
The
Plan Administrator will invest Codorus Valley dividend funds as soon as administratively possible and no later than 30 trading
days, following the dividend payable date.
Voluntary
cash payments will be accepted for investment, and will be invested only in connection with a dividend payment date. Because participants
will not be credited with interest on their voluntary cash payments prior to investment and because the Plan Administrator is
prohibited from holding voluntary cash payments for extended periods of time prior to investing them, participants are strongly
encouraged to submit their voluntary cash payments as near as possible to the applicable dividend payment date. For investment
of a voluntary cash payment to occur on a particular investment date, the voluntary cash payment must be received by the Plan
Administrator no earlier than 30 days prior to the corresponding dividend payment date, allowing adequate time for the checks
to clear prior to the corresponding dividend payment date. Historically, the Corporation has declared regular, quarterly cash
dividends to shareholders of record as of the second Tuesday of each of January, April, July and October and has paid the dividends
two weeks after the respective record date.
Purchases
of common stock in the open market or in negotiated transactions may occur over one or more trading days.
|
9.
|
What
will be the price of stock purchased under the Plan?
|
For
purchases of shares of common stock on the open market or in negotiated transactions, the purchase price will be the pro rata
share of the prices actually paid for the shares (excluding brokerage commissions, if any) at the time such purchases are made.
For shares of common stock purchased by the Plan Administrator directly from the Corporation, the purchase price will be the average
of the high and low price on the applicable investment date or the next trading day. The common stock is currently listed in the
Global Market of the National Association of Securities Dealers Automated Quotation System (“NASDAQ”).
|
10.
|
How
many shares will be purchased for participants?
|
The
number of shares that will be purchased for each participant will depend upon the amount of cash dividends to be reinvested for
the participant, the amount of any voluntary cash payments and the actual trading price of the shares purchased. Each participant’s
account will be credited with the whole and fractional shares (calculated to three (3) decimal places) equal to the amount invested
for the respective participant, divided by the applicable purchase price per share. The applicable purchase price per share will
be the total amount of dividends invested divided by the total shares purchased.
|
11.
|
Will
dividends on shares in participants’ accounts be used to purchase shares?
|
Yes.
Dividends subsequently paid on shares that have been purchased under the Plan will also be used to purchase the Corporation’s
common stock, thereby compounding each participant’s investment. Fractional shares held under the Plan for a participant’s
account will receive dividends in the same way as a whole share.
|
12.
|
Are
there any expenses to participants in connection with purchases under the Plan?
|
The
Corporation will pay all costs of administration of the Plan. The Corporation will also pay all brokerage fees incurred pursuant
to purchases of common stock made under the Plan.
Voluntary
Cash Payments
|
13.
|
Who
will be eligible to make voluntary cash payments?
|
All
holders of common stock who elect to have dividends reinvested and who are eligible to participate in accordance with the provisions
of this Plan may also elect to make voluntary cash payments.
|
14.
|
What
are the limitations on voluntary cash payments?
|
Participants
are strongly encouraged to submit any voluntary cash payments as near as possible to the applicable dividend payment date. Voluntary
cash payments received too early or too late will be returned to participants.
Voluntary
cash payments may not be less than $25.00 per payment or total more than $25,000.00 per quarter.
|
15.
|
How
does the voluntary cash payment option work?
|
You
can make additional cash investments in Codorus Valley at any time by check or by authorizing one-time or recurring automatic
bank withdrawals from a U.S. or Canadian financial institution. The dollars you invest (less any applicable fees) will go towards
purchasing whole and fractional shares (see Investment Summary and Fees, Minimum and Maximum Cash Investments).
Checks
-- To make an investment by mail, payments must be in U.S. dollars and drawn on a U.S. or Canadian financial institution. Cash,
money orders, traveler’s checks or third party checks are not accepted.
Automatic
investments — A participant may setup a one-time or monthly automatic withdrawal from a designated bank account. The
request may be submitted online, by telephone or by sending an Account Authorization Card by mail (see Contact Information).
Requests are processed and become effective as promptly as administratively possible. Once the automatic withdrawal is initiated,
funds will be debited from the participant’s designated bank account on or about five business days before the dividend
payable date and will be invested in Codorus Valley common stock. Changes or a discontinuation of automatic withdrawals can be
made online, by telephone or by using the Transaction Request Form attached to the participant’s statement. To be
effective with respect to a particular investment date, a change request must be received by the Plan Administrator at least 15
trading days prior to the investment date.
If
any optional cash contribution, including payments by check or automatic withdrawal, is returned for any reason, EQ will remove
from the participant’s account any shares purchased upon prior credit of such funds, and will sell these shares. EQ may
sell other shares in the account to recover a returned funds fee for each optional cash contribution returned unpaid for any reason
and may sell additional shares as necessary, to cover any market loss incurred by EQ.
A
refund request for an optional cash investment made by check must be received in writing by the Plan Administrator not less than
two (2) trading days before such amount is to be invested.
Participants
will not earn interest on funds held by the Plan Administrator. During the period that an optional cash investment is pending,
the collected funds in the possession of the Plan Administrator may be invested in certain Permitted Investments. For purposes
of this Plan, “Permitted Investments” shall mean the Plan Administrator may hold the funds uninvested or invested
in select Wells Fargo deposit products. The risk of any loss from such Permitted Investments shall be the responsibility of the
Plan Administrator. Investment income from such Permitted Investments shall be retained by the Plan Administrator.
A
participant may elect to deposit physical Codorus Valley common stock certificate(s) for safekeeping, by sending the certificate(s)
to the Plan Administrator together with instructions to deposit the certificate(s). The certificate(s) will show as surrendered
with the corresponding credit to Plan shares. The transaction will appear on the Plan account statement, and shares will be held
by the Plan Administrator in its name or nominee name. These shares will be held until the participant sells, withdraws or terminates
participation in the Plan. Because the participant bears the risk of loss in sending stock certificate(s), it is recommended that
the participant sends them registered, insured for at least 3% of the current market value and request a return receipt. Please
do not endorse certificates.
Optional
Mail Loss Insurance
The
participant is advised that choosing registered, express or certified mail alone will not provide full protection, should the
certificates become lost or stolen. Mail loss insurance, provides the coverage needed to replace and reissue the shares should
they become lost or stolen through the mail. As the Plan Administrator, we can provide low-cost loss insurance for certificates
being returned for conversion to book-entry form. Replacement transaction fees may also apply.
To
take advantage of the optional mail loss insurance, simply include a check in the amount of $10.00, made payable to “EQ
Surety Program”, along with the certificates and instructions. Choose an accountable mail delivery service such as Federal
Express, United Parcel Service, DHL, Express Mail, Purolator, TNT, or United States Postal Service Registered Mail. Any one shipping
package may not contain certificates exceeding a total value of $100,000. The value of certificate shares is based on the closing
market price of the common stock on the trading day prior to the documented mail date.
Claims
related to lost certificates under this service must be made within 60 days of the documented delivery service mail date. A copy
of the certificate(s) mailed, along with proof that it was sent by trackable mail should be submitted with the claim, This is
specific coverage for the purpose of converting shares to book-entry form and the surety is not intended to cover certificates
being tendered for certificate breakdown or exchange for other certificates.
Certificate(s)
will be issued to a participant for Codorus Valley common stock in the participant’s account upon written request to the
Plan Administrator. No certificate for a fractional share will be issued.
Reports
to Participants
|
16.
|
What
reports will participants in the Plan receive?
|
A
statement confirming each transaction will be sent to the participant promptly after the account activity occurs. The statement
will show detail of the activity including, date, price, shares and any applicable fees.
These
statements contain information to record the cost basis of your shares for tax reporting purposes. It is important that you keep
the statements to fulfill any tax obligations. The Plan Administrator will capture and track the cost basis for covered securities
as defined in the Federal tax regulations. If your statement becomes lost, a written request stating the information required
may be sent to the Plan Administrator at the address contained in this prospectus. A fee may be charged for retrieval of past
account information (see Investment Summary and Fees for additional information).
|
17.
|
How
will a participant’s shares be voted at meetings of shareholders?
|
Participants
in the Plan will receive voting materials and have the sole right to vote the common stock of Codorus Valley represented by the
shares held for them in the Plan. In the event the Participant does not provide direction for voting, the Plan shares will not
be voted,
The
participant is encouraged to read the information carefully. Votes may be submitted online, by telephone or by returning the signed,
dated proxy card. A participant’s shares will he voted in accordance with the most recent submitted instructions,
Federal
Income Tax Information
|
18.
|
What
are the federal income tax consequences of participating in the Plan?
|
For
federal income tax purposes, a participant in the Plan will be treated as having received on the dividend payment date the full
amount of dividends allocable to the participant, regardless of whether the dividends are actually paid in cash, withheld for
the payment of taxes or invested in additional shares of common stock pursuant to the Plan. Additionally, the participant will
be deemed
to have received taxable income in the amount of commissions and other brokerage expenses paid in purchasing shares
on the participant’s behalf. The per share tax basis of shares acquired for a participant under the Plan will be the price
per share reported on the periodic statement of account supplied to each participant after each applicable investment date and
will include the amount of brokerage commissions paid on behalf of the participant.
Compliance
with Emergency Economic Stabilization Act of 2008
Effective
January 1, 2012, the Plan qualified as a Dividend Reinvestment Plan (DRP) under the meaning of Treasury Regulation 1.1012-1(e)(6)(i),
which enables participants to use the “average basis method” when determining the tax basis of any shares sold.
This
Plan assumes that each participant will use the first-in, first-out “FIFO” method when determining the tax basis of
any shares sold. Participants may designate their preference for a different method of determining the tax basis of shares by
identifying this preference in writing to the Plan Administrator. Participants may designate their preference for “specific
identification” cost basis at any time or, effective January 1, 2012, may designate their preference for the “average
basis method” effective for sales occurring after the election. Federal tax regulations require the FIFO tax lot selection
method after the average cost basis election has been made.
The
holding period for shares acquired pursuant to the Plan will begin on the day after the date the shares are acquired for a participant’s
account. In the case of any participant as to whom federal income tax withholding on dividends is required, and in the case of
a foreign participant whose taxable income under the Plan is subject to federal income tax withholding, dividends will be reinvested
net of the amount of tax withheld under applicable law.
A
foreign person (nonresident alien individual or foreign entity) is subject to tax withholding at a 30% rate on the gross amount
of certain payments of U.S. source income including dividends, unless the beneficial owner of the payment is entitled to a reduced
rate of, or exemption from, withholding tax under an income tax treaty. Foreign Entity owned accounts may also be subject to 30%
withholding on all applicable U.S. sourced income, including, dividends, as required by the Foreign Account Tax Compliance Act
(“FATCA”). Gross proceeds received from the sale, maturity or exchange of securities that can produce U.S. sourced
dividends or interest were scheduled to be subject to potential FATCA withholding effective on January 1, 2019, but the Internal
Revenue Service issued proposed regulations that eliminate FATCA withholding with respect to gross proceeds and can be relied
upon unless and until alternative guidance is issued. Foreign persons should consult with their tax advisors or counsel as to
which tax certification form they are required to provide and for more specific information regarding the withholding requirements
under Chapters 3 and 4 (FATCA) of the U.S. Internal Revenue Code.
A
participant will not realize any taxable income upon receipt of certificates for whole shares credited to the participant’s
account, either upon the participant’s withdrawal of those shares from the Plan or upon termination of participation in
the Plan. A participant who sells or exchanges shares previously received from the Plan or who directs the Plan Administrator
to sell his or her Plan shares may, however, recognize gain or loss. A participant also will recognize gain or loss upon the receipt
of a cash payment for a fractional share credited to the participant’s account upon termination of participation in the
Plan. The amount of gain or loss in either case will be the difference between the amount the participant receives for the Plan
shares or fractional share and the participant’s tax basis in such shares or fractional share.
Participants
who purchase common stock under the Plan with voluntary cash payments should not be required to recognize income in connection
with the purchases, aside from the commissions and other brokerage expenses paid on behalf of the participant which amounts will
be taxable. The tax basis of shares purchased under these circumstances will be equal to the purchase price, adjusted for the
amount of commission expenses paid on behalf of participants. The holding period for the shares commences on the day after the
shares are acquired.
The
foregoing summary is based upon an interpretation of current federal income tax laws and assumes that dividends paid by the Corporation
will be from its earnings and profits. PARTICIPANTS SHOULD CONSULT THEIR OWN TAX ADVISORS TO DETERMINE PARTICULAR TAX CONSEQUENCES,
INCLUDING STATE TAX CONSEQUENCES, WHICH MAY RESULT FROM PARTICIPATION IN THE PLAN AND ANY SUBSEQUENT DISPOSAL OF SHARES ACQUIRED
PURSUANT TO THE PLAN.
Withdrawal
of Shares from Plan Accounts
|
19.
|
How
may a participant withdraw shares purchased under the Plan?
|
A
participant may withdraw all or a portion of the whole shares of common stock credited to his or her account by notifying the
Plan Administrator in writing to that effect and by specifying in the notice the number of shares to be withdrawn. Certificates
for whole shares of common stock so withdrawn from the Plan will be registered in the name of the participant and mailed to the
participant’s address of record. No certificates for fractional shares will be issued under any circumstance.
Dividends
on shares withdrawn from a participant’s account will continue to be reinvested unless the participant otherwise notifies
the Plan Administrator in writing. A participant who withdraws all of the whole and fractional shares from his or her account
will be treated as having terminated participation in the Plan.
|
20.
|
May
a participant elect to sell their shares?
|
Yes.
Sales are usually made through a broker, who will receive trading commissions. Typically, the shares are sold through the exchange
on which the common shares of Codorus Valley are traded. Depending on the number of Codorus Valley shares to be sold and current
trading volume, sale transactions may be completed in multiple transactions and over the course of more than one day. All sales
are subject to market conditions, system availability, restrictions and other factors. The actual sale date, time or price received
for any shares sold through the Plan cannot be guaranteed.
Participants
may instruct the Plan Administrator to sell shares under the Plan through a Batch Order, Market Order, Day Limit Order, Good-’Til-Date/Canceled
Limit Order or Stop Order.
Batch
Order (Online, telephone, null) – The Plan Administrator will combine each request to sell through the Plan with
other Plan participant sale requests for a Batch Order. Shares are then periodically submitted in bulk to a broker for sale on
the open market, Shares will be sold no later than five business days (except where deferral is necessary under state or federal
regulations). Bulk sales may he executed in multiple transactions and over more than one day depending on the number of shares
being sold and current trading volumes. Once entered, a Batch Order request cannot be canceled.
Market
Order (online or telephone) – The participant’s request to sell shares in a Market Order will be at the prevailing
market price when the trade is executed. If such an order is placed during, market hours, the Plan Administrator will promptly
submit the shares to a broker for sale on the open market. Once entered, a Market Order request cannot be canceled. Sales requests
submitted near the close of the market may be executed on the next trading day, along with other requests received after market
close.
Day
Limit Order (online or telephone) – The participant’s request to sell shares in a Day Limit Order will be
promptly submitted by the Plan Administrator to a broker. The broker will execute as a Market Order when and if the stock reaches,
or exceeds the specified price on the day the order was placed (for orders placed outside of market hours, the next trading day).
The order is automatically canceled if the price is not met by the end of that trading day. Depending on the number of shares
being sold and current trading volumes, the order may only be partially filled and the remainder of the order canceled. Once entered,
a Day Limit Order request cannot be canceled by the participant.
Good-’Til-Date/Canceled
(GTD/GTC) Limit Order (online or telephone) – A GTD/GTC Limit Order request will be promptly submitted by the Plan
Administrator to a broker. The broker will execute as a Market Order when and if the stock reaches, or exceeds the specified price
at any time while the order remains open (up to the date requested or 90 days for GTC). Depending on the number of shares being
sold and current trading, volumes, sales may be executed in multiple transactions and may be traded on more than one day. The
order or any unexecuted portion will be automatically canceled if the price is not met by the end of the order period. The order
may also be canceled by the applicable stock exchange or the participant.
Stop
Order (online or telephone) – The Plan Administrator will promptly submit a participant’s request to sell
shares in a Stop Order to a broker. A sale will be executed when the stock reaches a specified price, at which time the Stop Order
becomes a Market Order and the sale will be at the prevailing market price when the trade is executed. The price specified in
the order must be below the current market price (generally used to limit a market loss).
Sales
proceeds will be net of any fees to be paid by the participant (see Investment Summary and Fees for details). The Plan Administrator
will deduct any fees or applicable tax withholding from the sale proceeds. Sales processed on accounts without a valid Form W-9
for U.S. citizens or Form W-8BEN for non-U.S. citizens will be subject to Federal Backup Withholding. This tax can be avoided
by furnishing the appropriate and valid form prior to the sale. Forms are available online at shareowneronline.com.
A
check for the proceeds of the sale of shares (in U.S. dollars), less applicable taxes and fees, will generally be mailed by first
class mail as soon as administratively possible after settlement date. If a participant submits a request to sell all or part
of the Plan shares, and the participant requests net proceeds to be automatically deposited to a checking or savings account,
the participant must provide a voided blank check for a checking account or blank savings deposit slip for a savings account.
If the participant is unable to provide a voided check or deposit slip, the participant’s written request must have the
participant’s signature(s) medallion guaranteed by an eligible financial institution for direct deposit, Requests for automatic
deposit of sale proceeds that do not provide the required documentation will not be processed and a check for the net proceeds
will be issued.
A
participant who wishes to sell shares currently held in certificate form may send them in for deposit to the Plan Administrator
and then proceed with the sale. To sell shares through a broker of their choice, the participant may request the broker to transfer
shares electronically from the Plan account to their brokerage account. Alternatively, a stock certificate can be requested that
the participant can deliver to their broker.
The
Corporation’s share price may fluctuate between the time the sale request is received and the time the sale is completed
on the open market. The Plan Administrator shall not be liable for any claim arising out of failure to sell on a certain date
or at a specific price. Neither the Plan Administrator nor any of its affiliates will provide any investment recommendations or
investment advice with respect to transactions made through the Plan. This risk should be evaluated by the participant and is
a risk that is borne solely by the participant.
The
Insider Trading Policy provides that the participant may not trade in the Corporation’s common stock if in possession of
material, non-public information about the company. Share sales by employees, Affiliates and Section 16 officers must be made
in compliance with the Corporation’s Insider Trading Policy.
Termination
of Participation
|
21.
|
How
does a participant terminate participation in the Plan?
|
A
participant may terminate participation in the Plan at any time by instruction to the Plan Administrator. Requests can be made
online, by telephone or through the mail (see Contact Information). A participant requesting termination may elect to retain Codorus
Valley shares or to sell all or a portion of the shares in the account. If a participant chooses to retain the Plan shares, they
will be converted and held in book-entry DRS. Any fractional shares will be sold and a check will be sent to the participant for
the proceeds. If a participant chooses to sell the Plan shares, the Plan Administrator will sell such shares at the current market
value and will send the proceeds to the participant, less fees and any applicable taxes. If no election is made in the request
for termination, whole Plan shares will be converted to book-entry DRS. Upon termination, any uninvested contributions will be
returned to the participant. Any future dividends will be paid in cash, unless the participant rejoins the Plan.
If
the participant’s request to terminate their participation in the Plan is received on or after a dividend record date, but
before the dividend payable date, the participant’s termination will be processed as soon as administratively possible,
and a separate dividend check will be mailed to the participant.
The
Plan Administrator reserves the right to terminate participation in the Plan if a participant does not have at least one whole
share in the Plan. Upon termination the participant may receive the cash proceeds from the sale of any fractional share less any
transaction fee and trading commission.
Certificates
for Shares
|
22.
|
Will
certificates be issued for shares purchased under the Plan?
|
No.
Certificates for shares purchased for a participant’s account under the Plan will not be issued unless the participant requests
in writing that the Plan Administrator issue a certificate.
|
23.
|
In
whose name will shares be registered when certificates are issued to participants?
|
Certificates
will be issued in the name or names that appear on the participant’s account under the Plan. If a participant requests a
certificate to be registered in a name other than that shown on the account, the request must be signed by all persons in whose
names the account appears, with signatures Medallion guaranteed and accompanied by such other documentation as the Plan Administrator
may require.
Other
Information
|
24.
|
May
a participant pledge shares held under the Plan or transfer rights under the Plan?
|
No.
Shares credited to a participant’s account under the Plan may not be pledged or assigned, nor may any rights or interests
under the Plan be transferred, pledged or assigned, and any purported pledge, assignment or transfer shall be void. A participant
who wishes to pledge or assign his or her shares held under the Plan must withdraw those shares from the Plan.
|
25.
|
May
a participant transfer or gift shares of common stock registered in his or her name?
|
To
authorize a transfer or gift of Codorus Valley shares, a participant must submit a Stock Power Form with instructions to
transfer ownership of shares, to the Plan Administrator. The Form can be found on our website at shareowneronline.com.
For additional assistance regarding the transfer of Plan shares, contact the Plan Administrator (see Contact Information). The
Form will require a “Medallion Signature Guarantee” by a financial institution. A Medallion Signature Guarantee is
a special guarantee for securities and may be obtained through a financial institution such as a broker, bank, savings and loan
association, or credit union who participates in the Medallion Signature Guarantee program. The guarantee ensures that the individual
requesting the transfer of securities is the owner of those securities. Most banks and brokers participate in the Medallion Signature
Guarantee program.
If
a participant’s request to transfer all Plan shares in an account is received between a dividend record date and payable
date, the request will be processed and a separate dividend check will be mailed to the participant.
A
participant can also gift shares by submitting an optional cash investment on behalf of an existing Plan participant (see Investment
Summary and Fees for Minimum and Maximum Cash Investment amounts), if a participant’s investments or transfers are made
to an existing account, dividends on the shares credited to such investments or transfers will be invested in accordance with
the elections made by the existing account owner.
|
26.
|
What
happens if the Corporation declares a stock dividend or a stock split?
|
It
is understood that any stock dividends or stock splits distributed by Codorus Valley on common stock held by the Plan Administrator
for the participant will he credited to the participant’s account. This will include all whole and fractional shares. Codorus
Valley has paid stock dividends at various times in the past.
|
27.
|
May
the Plan be modified or terminated?
|
Yes.
The Corporation reserves the right to suspend, modify or terminate the Plan at any time. Participants will receive notice of any
suspension, termination or material modification of the Plan. The Corporation also reserves the right to terminate, at its sole
discretion, any shareholder’s participation in the Plan at any time. The Corporation or Plan Administrator may adopt rules
and regulations from time to time to facilitate the administration of the Plan.
At
the direction of the Corporation, the Plan Administrator can terminate your participation in the Plan if the participant does
not own at least one full share in the participant’s name or held through the Plan.
|
28.
|
What
are the liabilities of the Corporation or the Plan Administrator under the Plan?
|
The
Codorus Valley common stock is not insured by the FDIC or any other government agency, are not deposits or other obligations of,
and are not guaranteed by, EQ Shareowners Services or Codorus Valley, and are subject to investment risks, including possible
loss of principal amount invested. Common stock held in the Plan is not subject to protection under the Securities Investor Protection
Act of 1970.
In
administering the Plan, neither the Corporation, the Plan Administrator nor the Plan Purchasing Agent is liable for any good faith
act or omission to act, including but not limited to any claim of liability (i) arising out of the failure to terminate a participant’s
account upon such participant’s death prior to receipt of a notice in writing of such death, (ii) with respect to the prices
or times at which shares are purchased or sold, or (iii) as to the value of the shares acquired for participants.
EQ
Shareowner Services, as the Plan Administrator, is authorized to choose a broker, at its sole discretion to facilitate purchases
and sales of common stock by Plan Participants. The Plan Administrator will furnish the name of the registered broker utilized
in share transactions within a reasonable time upon written request from the Participant.
The
Plan Administrator is acting solely as agent of the Corporation and owes no duties, fiduciary or otherwise, to any other person
by reason of this Plan, and no implied duties, fiduciary or otherwise, shall be read into this Plan.
The
Plan Administrator undertakes to perform such duties and only such duties as are expressly set forth herein, to be performed by
it, and no implied covenants or obligations shall be read into this Plan against the Plan Administrator or the Corporation.
In
the absence of negligence or willful misconduct on its part, the Plan Administrator, whether acting directly or through agents
or attorneys shall not be liable for any action taken, suffered, or omitted or for any error of judgment made by it in the performance
of its duties hereunder. In no event shall the Plan Administrator be liable for special, indirect or consequential loss or damage
of any kind whatsoever (including but not limited to lost profit), even if the Plan Administrator has been advised of the likelihood
of such loss or damage and regardless of the form of action.
The
Plan Administrator shall: (i) not be required to and shall make no representations and have no responsibilities as to the validity,
accuracy, value or genuineness of any signatures or endorsements, other than its own; and (ii) not be obligated to take any legal
action hereunder that might, in its judgment, involve any expense or liability, unless it has been furnished with reasonable indemnity.
The
Plan Administrator shall not be responsible or liable for any failure or delay in the performance of its obligations under this
Plan arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation,
acts of God; earthquakes; fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots; interruptions, loss
or malfunctions of utilities; computer (hardware or software) or communications services; accidents; labor disputes; acts of civil
or military authority or governmental actions; it being understood that the Plan Administrator shall use reasonable efforts which
are consistent with accepted practices in the stock investment plan industry to resume performance as soon as administratively
possible under the circumstances.
29.
Investment Summary and Fees
Summary
|
|
Minimum
cash investments
|
|
Minimum
one-time optional cash purchase
|
$25.00
|
|
|
Minimum
recurring automatic investments
|
$25.00
|
Maximum
cash investments
|
|
Maximum
quarterly investment
|
$25,000.00
|
|
|
Dividend
reinvestment options
|
|
Reinvest
options
|
Full
|
|
|
Fees
|
|
Investment
fees
|
|
Dividend
reinvestment
|
Company
Paid
|
Check
investment
|
Company
Paid
|
One
time automatic investment
|
Company
Paid
|
Recurring
automatic investment
|
Company
Paid
|
Dividend
purchase trading commission per share
|
Company
Paid
|
Optional
cash purchase trading commission per share
|
Company
Paid
|
|
|
Sales
fees
|
|
Batch
Order
|
$15.00
|
Market
Order
|
$25.00
|
Limit
Order per transaction (Day/GTD/GTC)
|
$30.00
|
Stop
Order
|
$30.00
|
Sale
trading commissions per share
|
$0.12
|
Direct
deposit of sale proceeds
|
$5.00
|
Other
fees
|
|
Certificate
issuance
|
Company
Paid
|
Certificate
deposit
|
Company
Paid
|
Returned
check / Rejected automatic bank withdrawals
|
$35.00
per item
|
Prior
year duplicate statements
|
$20.00
per year
|
These
fees may change from time to time or the Corporation may incur additional fees for various reasons.
USE
OF PROCEEDS
The
Corporation does not know the number of shares of common stock that will be purchased from it under the Plan or the prices at
which such shares will be purchased. To the extent that shares are purchased from the Corporation, and not in the open market,
the Corporation intends to add proceeds it receives from the sales to its general funds to be used for general corporate purposes,
including, without limitation, investments in and advances to the Corporation’s subsidiaries. The amounts and timing of
the application of proceeds will depend upon the funding requirements of the Corporation and its subsidiaries and the availability
of other funds.
EXPERTS
The
Corporation’s consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the
period ended December 31, 2019 and management’s assessment of the effectiveness of internal control over financial reporting
as of December 31, 2019 incorporated by reference in this prospectus have been so incorporated in reliance on the reports of BDO
USA, LLP, an independent registered public accounting firm, incorporated herein by reference, given on the authority of said firm
as experts in auditing and accounting.
LEGAL
MATTERS
Stevens
& Lee, P.C., legal counsel to Codorus Valley, will pass upon the validity of the common stock offered pursuant to the Plan.
WHERE
TO FIND MORE INFORMATION
Codorus
Valley is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith
files reports and other information with the SEC. You may call the SEC at 1-800-SEC-0330 for further information on the public
reference room. Codorus Valley’s common stock is listed for trading on the NASDAQ Global Market. Reports, proxy and information
statements, and other information concerning Codorus Valley may also be inspected at the offices of NASDAQ at 1735 K Street, N.W.,
Washington, D.C. 20006. The SEC maintains a Web site that contains reports, proxy and information statements and other information
regarding registrants, like Codorus Valley, that file electronically with the SEC. The address of the SEC website is http.//www.sec.gov.
Codorus Valley operates a website at https://www.peoplesbanknet.com.
Codorus
Valley has filed with the SEC a Registration Statement on Form S-3 (together with all amendments and exhibits thereto, the “Registration
Statement”) under the Securities Act of 1933, as amended (the “Securities Act”), with respect to the securities
offered hereby. This document does not contain all the information set forth in the Registration Statement, certain portions of
which have been omitted as permitted by the rules and regulations of the SEC. For further information with respect to Codorus
Valley and the securities offered hereby, reference is made to the Registration Statement and the exhibits and the financial statements,
notes and schedules filed as a part thereof or incorporated by reference therein, which may be inspected at the public reference
facilities of the SEC at the addresses set forth above or through the SEC website. Statements made in this document concerning
the contents of any documents referred to herein are not necessarily complete, and in each instance are qualified in all respects
by reference to the copy of such document filed as an exhibit to the Registration Statement.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
Some
of the information that you may want to consider in deciding whether to purchase shares of common stock is not physically included
in this document, but rather is “incorporated by reference” to documents that have been filed by Codorus Valley with
the SEC. As permitted by the SEC, the following documents are incorporated by reference in this document:
|
1.
|
Codorus
Valley’s Annual Report on Form 10-K for the year ended December 31, 2019, filed March 11, 2020;
|
|
2.
|
Codorus
Valley’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed May 8, 2020, as amended on Form 10-Q/A
filed May 15, 2020;
|
|
3.
|
Codorus
Valley’s Current Reports on Form 8-K, filed January 15, January 16, February 14, March 12, March 16, April 13, April 14,
April 20, April 23, May 21, and July 15, 2020; and
|
|
4.
|
The
description of Codorus Valley’s common stock set forth in our Current Report on Form 8-K on October 13, 2016 (which Report
was filed solely to set forth a complete updated description of our common stock), including any amendment or reports filed under
the Exchange Act for the purpose of updating such description.
|
All
documents filed by Codorus Valley pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this document
and prior to the termination of the offering of the securities made by this document shall be deemed to be incorporated by reference
in this document and to be a part hereof from the date of filing of such documents. Any statement contained in a document incorporated
or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this document to
the extent that a statement contained herein or in any other subsequently filed document that also is or is deemed to be incorporated
by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this document.
Codorus
Valley hereby undertakes to provide without charge to each person, including any beneficial owner, to whom a copy of this document
has been delivered, on the written or oral request of any such person, a copy of any and all of the documents that have been incorporated
by reference in this document. Requests for such copies should be directed to Larry D. Pickett, CPA, Treasurer, Codorus Valley
Bancorp, Inc., 105 Leader Heights Road, P.O. Box 2887, York, Pennsylvania, 17405, telephone (717) 747-1519.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore unenforceable.
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
14. Other Expenses of Issuance and Distribution.
The
following table sets forth the estimated expenses to be incurred by Codorus Valley in connection with the issuance and distribution
of the shares being registered:
Registration
Fee
|
$415
|
Printing Expenses
|
800
|
Accounting Expenses
|
50,000
|
Legal Expenses
|
30,000
|
|
|
TOTAL
|
$81,215
|
Item
15. Indemnification of Directors and Officers.
Pennsylvania
law provides that a Pennsylvania corporation may indemnify directors, officers, employees and agents of the corporation against
liabilities they may incur in such capacities for any action taken or any failure to act, whether or not the corporation would
have the power to indemnify the person under any provision of law, unless such action or failure to act is determined by a court
to have constituted recklessness or willful misconduct. Pennsylvania law also permits the adoption of a bylaw amendment, approved
by shareholders, providing for the elimination of a director’s liability for monetary damages for any action taken or any
failure to take any action unless (1) the director has breached or failed to perform the duties of his office and (2) the breach
or failure to perform constitutes self-dealing, willful misconduct or recklessness.
The
organizational documents of Codorus Valley Bancorp, Inc. provide for (1) indemnification of directors, officers, employees and
agents of the registrant and its subsidiaries and (2) the elimination of a director’s liability for monetary damages, to
the fullest extent permitted by Pennsylvania law.
Directors
and officers are also insured against certain liabilities for their actions, as such, by an insurance policy obtained by Codorus
Valley Bancorp, Inc.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or controlling
persons, the registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is therefore unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by a registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant) is asserted be such directors, officer of controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
or appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
Item
16. Exhibits.
Item
17. Undertakings.
(a)
The undersigned registrant hereby undertakes as follows:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) (§230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change
in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective
registration statement;
(iii)
to include any material information with respect to the Plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
provided,
however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included
in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration
statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
(4)
The undersigned Registrant hereby undertakes that, for the purpose of determining liability under the Securities Act of 1933 to
any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other
than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to
be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however,
that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that
was made in the registration statement or prospectus that was part of the registration statement or made in any such document
immediately prior to such date of first use.
(b)
The undersigned Registrant hereby undertakes that, for purpose of determining any liability under the Securities Act of 1933,
each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934
(and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(c)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that
in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of York, Commonwealth of Pennsylvania, on July 29, 2020.
|
CODORUS VALLEY BANCORP, INC.
|
|
|
|
/s/ Larry J. Miller
|
|
|
By: Larry J. Miller
|
|
Chairman, President and Chief Executive Officer
|
POWER
OF ATTORNEY
KNOW
ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Larry J. Miller and
Larry D. Pickett, CPA, as their true and lawful attorney-in-fact and agent, each with full power of substitution and resubstitution,
for him or her and in his or her name, place and stead, in any and all capacities to sign the Form S-3 Registration Statement
and any and all amendments thereto, and to file the same, with all exhibits thereto, and other documents in connection therewith,
with the U.S. Securities and Exchange Commission, granting unto each said attorney-in-fact and agent full power and authority
to do and perform each and every act and thing requisite and necessary to be done as fully to all intents and purposes as he or
she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or either one of his
or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/
Larry J. Miller
|
|
President,
Chief Executive Officer,
|
|
|
Larry J. Miller
|
|
Chairman
of the Board of
|
|
July 29, 2020
|
(Principal Executive
Officer)
|
|
Directors
and Director
|
|
|
|
|
|
|
|
/s/Harry R. Swift, Esq
|
|
Vice-Chairman
of the Board of
|
|
|
Harry R. Swift,
Esq.
|
|
Directors
and Lead Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/Sarah M. Brown
|
|
|
|
|
Sarah M. Brown
|
|
Director
|
|
July
29, 2020
|
|
|
|
|
|
/s/Brian D. Brunner
|
|
|
|
|
Brian D. Brunner
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/Cynthia A. Dotzel,
CPA
|
|
|
|
|
Cynthia A. Dotzel,
CPA
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/John W. Giambalvo, Esq
|
|
|
|
|
John W. Giambalvo,
Esq.
|
|
Director
|
|
July 29, 2020
|
/s/Jeffrey R. Hines,
P.E.
|
|
|
|
|
Jeffrey R. Hines,
P.E.
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/MacGregor S. Jones
|
|
|
|
|
MacGregor S. Jones
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/Craig L. Kauffman
|
|
|
|
|
Craig L. Kauffman
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/J. Rodney Messick
|
|
|
|
|
J. Rodney Messick
|
|
Director
|
|
July 29, 2020
|
|
|
|
|
|
/s/Larry D. Pickett,
CPA
|
|
Treasurer
|
|
|
Larry D. Pickett,
CPA
|
|
(Principal
Financial and Accounting Officer)
|
|
July 29, 2020
|
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