Peoples Financial Services Corp. (“Peoples” or the “Company”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the “Bank”), today reported unaudited financial results at and for the three months ended March 31, 2025.
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Peoples reported net income of $15.0 million, or $1.49 per diluted share for the three months ended March 31, 2025, compared to a net income of $6.1 million, or $0.61 per diluted share for the three months ended December 31, 2024. Return on average assets and return on average equity for the three months ended March 31, 2025 was 1.22% and 12.70% on an annualized basis compared to 0.47% and 5.07% for the three months ended December 31, 2024.
Net income on a linked-quarter basis, increased primarily due to higher net interest income, a lower provision for credit losses and reduced noninterest expenses. On July 1, 2024, Peoples consummated the merger of FNCB Bancorp, Inc. (“FNCB”) into Peoples and the merger of FNCB Bank into the Bank (collectively referred to as the “FNCB merger”). Non-recurring acquisition related expenses totaled $0.2 million in the quarter ended March 31, 2025 compared to $5.0 million in the three months ended December 31, 2024.
In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles (“GAAP”), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity, core net income and pre-provision revenue ratios, and tax-equivalent net interest income and related ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely acquisition related expenses, nonrecurring provisions for non-purchase credit deteriorated (“non-PCD”) loans and gain or loss on the sale of securities available for sale. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.
Core net income and core earnings per diluted share1, non-GAAP measures, exclude the non-recurring acquisition related expenses of $0.2 million and $5.0 million incurred during the three months ended March 31, 2025 and December 31, 2024, respectively, and totaled $15.1 million or $1.51 per diluted share for the three months ended March 31, 2025 compared to $10.0 million, or $0.99 per diluted share for the three months ended December 31, 2024.
Income before income taxes was $18.3 million and $5.8 million for the three months ended March 31, 2025 and December 31, 2024, respectively. Pre-provision net revenue (PPNR)1 and PPNR per diluted share1, non-GAAP measures, for the three months ended March 31, 2025 were $18.3 million or $1.82 per diluted share. The PPNR and PPNR diluted earnings per share for the prior quarter were $9.6 million or $0.96 per diluted share. Core pre-provision net revenue (PPNR)1 and core PPNR per diluted share1, non-GAAP measures, which exclude acquisition related expenses, the provision for credit losses and the provision for credit losses on unfunded commitments from income before taxes, for the three months ended March 31, 2025 were $18.4 million or $1.83 per diluted share. The core PPNR and core PPNR diluted earnings per share for the prior quarter were $14.6 million or $1.46 per diluted share.
Merger with FNCB
Peoples acquired FNCB and its wholly-owned subsidiary FNCB Bank by merger on July 1, 2024. The merger and acquisition method of accounting was used to account for the transaction with Peoples as the acquirer. The Company recorded the assets and liabilities of FNCB at their respective fair values as of July 1, 2024. The transaction was valued at approximately $133.7 million. Primary reasons for the merger included: expansion of the branch network and enhancing market share positions in northeastern Pennsylvania; attractive low-cost funding base; strong cultural alignment and a deep commitment to shareholders, customers, employees, and communities served by Peoples and FNCB, meaningful value creation to shareholders; increased trading liquidity for both companies and increased dividends for Peoples shareholders.
At the time of the merger, FNCB contributed, after fair value purchase accounting adjustments, approximately $1.8 billion in assets, $421.9 million in investments, $1.2 billion in loans, $1.4 billion in deposits, $226.3 million in Federal Home Loan Bank (“FHLB”) advances and other borrowings, and $8.0 million in junior subordinated debt. The excess of the merger consideration over the fair value of the net FNCB assets acquired and liabilities assumed resulted in $12.6 million of goodwill. The FNCB merger also resulted in a core deposit intangible valued at $36.6 million or 5.1% of core deposits.
The Company's financial results for any periods ended prior to July 1, 2024 only reflect Peoples results on a stand-alone basis. As a result of the FNCB merger and the below listed adjustments related to the FNCB merger, the Company's financial results for the three months ended March 31, 2025 may not be directly comparable to prior reported periods. The following schedule highlights specific merger related activity for the three months ended March 31, 2025 and December 31, 2024:
Schedule of Merger & Acquisition Costs and Non-Recurring Merger Related Activity (Unaudited) Quarter Ended Quarter Ended(Dollars in thousands) March 31, 2025 December 31, 2024Acquisition related expenses $ 154 $ 4,990Total net M&A costs and non-recurring transaction costs $ 154 $ 4,990
NOTABLES IN THE QUARTER
— Paid a first quarter dividend of $0.6175 per share, representing an increase of 50.6% over the March 31, 2024 dividend.
— Allowance for credit losses to loans was 1.03% at March 31, 2025 compared to 1.05% and 0.79% at December 31, 2024 and March 31, 2024, respectively.
— Return on average equity for the three months ended March 31, 2025 was 12.70% on an annualized basis compared to 5.07% for the three months ended December 31, 2024; excluding the non-recurring charges, core return on average equity1, a non-GAAP measure, was 12.80% on an annualized basis for the three months ended March 31, 2025 compared to 8.31% for the three months ended December 31, 2024.
— Return on average assets for the three months ended March 31, 2025 was 1.22% on an annualized basis compared to 0.47% for the three months ended December 31, 2024; excluding the non-recurring charges, core return on average assets1, a non-GAAP measure, was 1.23% on an annualized basis for the three months ended March 31, 2025 compared to 0.76% for the three months ended December 31, 2024.
— The efficiency ratio1, a non-GAAP measure, was 55.77% for the three months ended March 31, 2025, compared to 63.03% for the three months ended December 31, 2024
— Book value per common share at March 31, 2025 was $48.21 compared to $46.94 and $48.18 at December 31, 2024 and March 31, 2024, respectively.
— Tangible book value per common share1, a non-GAAP measure, was $37.35 at March 31, 2025 compared to $35.88 and $39.20 at December 31, 2024 and March 31, 2024, respectively.
INCOME STATEMENT REVIEW
— Net interest margin (“NIM”), calculated on a fully taxable equivalent (“FTE”) basis, a non-GAAP measure1, for the three months ended March 31, 2025 was 3.50%, an increase of 25 basis points compared to 3.25% for the three months ended December 31, 2024. The net accretion impact of purchase accounting marks was $3.7 million of net interest income in each period, which represented 32 basis points and 30 basis points of NIM for the three months ended March 31, 2025 and December 31, 2024, respectively.
— The tax-equivalent yield on interest-earning assets, a non-GAAP measure1, decreased 1 basis point to 5.50% during the three months ended March 31, 2025 from 5.51% during the three months ended December 31, 2024.
— The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 30 basis points to 2.58% for the three months ended March 31, 2025 when compared to 2.88% during the three months ended December 31, 2024.
— The cost of interest-bearing deposits decreased 29 basis points during the three months ended March 31, 2025 to 2.46% from 2.75% in the three months ended December 31, 2024.
— The cost of total deposits for the three months ended March 31, 2025 was 1.96%, a decrease of 24 basis points from 2.20% for the three months ended December 31, 2024.
First Quarter 2025 Results – Comparison to Fourth Quarter 2024
Net interest income for the three months ended March 31, 2025 increased $1.0 million to $39.5 million from $38.5 million for the three months ended December 31, 2024. Tax-equivalent net interest income, a non-GAAP measure1, for the three months ended March 31, 2025 increased $1.0 million or 2.6% to $40.2 million from $39.2 million for the three months ended December 31, 2024. The increase in tax-equivalent net interest income was due to a $4.4 million decrease in interest expense that was partially offset by a $3.4 million decrease in tax-equivalent interest income.
Lower interest income was the result of decreases in the volume of earning assets and lower rates on floating rate assets resulting from the Federal Open Market Committee's (“FOMC”) 100 basis point cut to the federal funds rate since September 2024. Average loans, net, decreased $57.0 million when comparing the three months ended March 31, 2025 to the prior three month period ended December 31, 2024. Average investments totaled $643.0 million in the three months ended March 31, 2025 and $628.9 million in the three months ended December 31, 2024 an increase of $14.1 million. Average federal funds sold decreased $103.5 million to $26.0 million for the three months ended March 31, 2025 as funds were used for seasonal deposit outflows.
The decrease in interest expense for the three months ended March 31, 2025 was due primarily to lowering rates paid on consumer, business, and municipal deposit accounts in response to the FOMC's aforementioned cut to the federal funds rate, coupled with the reduced balances. The Company's total cost of deposits decreased 24 basis points to 1.96% during the three months ended March 31, 2025 compared to 2.20 % for the prior quarter. The cost of interest-bearing deposits decreased 29 basis point to 2.46% from 2.75% in the prior quarter.
Average interest-bearing liabilities decreased $168.5 million for the three months ended March 31, 2025, compared to the three months ended December 31, 2024. Average interest-bearing deposits decreased $136.0 million and represented 79.7% of total average deposits in the three months ended March 31, 2025 as compared to 79.8% in the three months ended December 31, 2024. Average noninterest-bearing deposits decreased $29.2 million and represented 20.3% of total average deposits in the three months ended March 31, 2025 as compared to 20.2% in the three months ended December 31, 2024. Short-term borrowings averaged $20.2 million in the three month period ended March 31, 2025 at an average cost of 4.52% compared to $39.3 million in short-term borrowings at an average cost of 4.80% during the three months ended December 31, 2024. Long-term debt averaged $97.8 million in the three month period ended March 31, 2025 at an average cost of 4.88% compared to $111.1 million at an average cost of 4.97% in the three months ended December 31, 2024.
For the three months ended March 31, 2025, $0.2 million was recorded to the provision for credit losses compared to $3.4 million in the prior quarter. The provision for the 1st quarter of 2025 declined from the previous quarter due mainly to a reduction in qualitative factors for the equipment financing loan portfolio as a result of stabilized loan balances along with a decline in the model loss rate primarily driven by a change in economic forecasting during the quarter.
Noninterest income was $6.3 million and $5.5 million for the three months ended March 31, 2025 and December 31, 2024, respectively. Higher noninterest income was due to a $680 thousand gain on the sale of fixed assets due to the sale of the Company's former corporate headquarters in Scranton, PA, coupled with net gains on equity investments and an increased cash surrender value of life insurance, partially offset by lower interest rate swap revenue during the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024.
Noninterest expense decreased $7.4 million to $27.4 million for the three months ended March 31, 2025, from $34.8 million for the three months ended December 31, 2024. Excluding acquisition related expenses, which included legal and consulting, core system deconversion fees and severance payments, of $0.2 million in the quarter ended March 31, 2025 and $5.0 million in the prior quarter, noninterest expenses decreased $2.6 million.
Salaries and employee benefits were $1.8 million lower due to the prior period accrual of $1.8 million for year-end cash incentives and a current period $0.5 million accrual adjustment related to the Company's long-term equity incentive plan which was offset by higher payroll taxes of $0.5 million.
Net occupancy and equipment expense increased $0.2 million from the prior quarter due to higher seasonal snow removal and utility expenses. Acquisition related expenses decreased $4.8 million to $0.2 million. Other expenses decreased $1.0 million to $5.4 million for the first quarter which included a $0.2 million credit to the reserve on unfunded commitments. Additionally, the prior period included a $0.4 million write-down of a former branch property and an additional $0.4 million in check and debit card losses. These reductions to other expenses, were partially offset by an increase to Pennsylvania bank and trust company shares tax expense and accounting and auditing expenses..
Income tax expense was $3.2 million for the three months ended March 31, 2025, compared to a benefit of $0.3 million for the three months ended December 31, 2024. The higher tax rate was due to higher pre-tax income. The prior quarter's lower tax rate was due to the impact of merger-related non-recurring permanent tax adjustments, such as tax-exempt income and BOLI income, on a lower pre-tax income base.
BALANCE SHEET REVIEW
At March 31, 2025, total assets, loans, and deposits were $5.0 billion, $4.0 billion, and $4.3 billion, respectively.
Total loans declined $2.0 million during the first quarter to $4.0 billion at March 31, 2025. Reductions in commercial real estate, indirect auto, and other consumer loans, were partially offset by growth in commercial loans, residential real estate loans and equipment financing loans.
Total investments were $582.2 million at March 31, 2025, compared to $606.9 million at December 31, 2024. At March 31, 2025, the available for sale securities totaled $503.0 million and the held to maturity securities totaled $76.7 million. The unrealized loss on the available for sale securities decreased $5.6 million from $49.0 million at December 31, 2024, to $43.4 million at March 31, 2025. The unrealized losses on the held to maturity portfolio totaled $11.9 million and $13.0 million at March 31, 2025, and December 31, 2024, respectively.
Total deposits decreased $90.6 million during the three months ended March 31, 2025, due primarily to seasonal outflows of non-maturity deposits and reductions in brokered CDs. Noninterest-bearing deposits decreased $34.1 million and interest-bearing deposits decreased $56.5 million during the three months ended March 31, 2025. The Company had $235.3 million and $256.4 million of longer-term brokered CDs at March 31, 2025, and December 31, 2024, respectively.
The Company's deposit base consisted of 42.0% retail accounts, 35.7% commercial accounts, 16.8% municipal relationships and 5.5% brokered deposits at March 31, 2025. At March 31, 2025, total estimated uninsured deposits were $1.3 billion, or approximately 30.0% of total deposits. Included in the uninsured total at March 31, 2025, is $497.3 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $2.0 million of affiliate company deposits. The Bank also offers customers access to CDARS and ICS programs through which their deposits may be allocated to separate FDIC-insured institutions, while they are able to maintain their relationship with the Bank.
In addition to deposit gathering and current long-term debt, the Company has additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities. At March 31, 2025, available borrowing capacity totaled $1.1 billion at the FHLB and $583.2 million at the Federal Reserve's Discount Window. At March 31, 2025, the Company had $77.1 million in cash and cash equivalents, a decrease of $58.8 million from $135.9 million at December 31, 2024. For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 14.
The Company maintained its well capitalized position at March 31, 2025. Stockholders' equity equaled $481.9 million or $48.21 per share at March 31, 2025, and $469.0 million or $46.94 per share at December 31, 2024. The increase in stockholders' equity from December 31, 2024, is primarily attributable to net income less dividends to shareholders and a $4.2 million decrease to accumulated other comprehensive loss (“AOCL”) resulting from a reduction in the unrealized loss on available for sale securities. The net after tax unrealized loss on available for sale securities included in AOCL at March 31, 2025, and December 31, 2024, was $33.9 million and $38.3 million, respectively.
Tangible book value1, a non-GAAP measure, increased to $37.35 per share at March 31, 2025, from $35.88 per share at December 31, 2024. Dividends declared for the three months ended March 31, 2025 amounted to $0.6175 per share.
ASSET QUALITY REVIEW
Nonperforming assets were $23.7 million or 0.59% of loans, net, and foreclosed assets at March 31, 2025, compared to $23.0 million or 0.58% of loans, net, and foreclosed assets at December 31, 2024. As a percentage of total assets, nonperforming assets were 0.47% at March 31, 2025, compared to 0.45% at December 31, 2024. At March 31, 2025, and December 31, 2024, the Company had one foreclosed property recorded at $27 thousand.
During the three months ended March 31, 2025, net charge-offs were $0.9 million and the provision for credit losses totaled $0.2 million. The allowance for credit losses equaled $41.1 million or 1.03% of loans, net, at March 31, 2025, compared to $41.8 million or 1.05% of loans, net, at December31, 2024.
1 See reconciliation of non-GAAP financial measures on pg.16-17.
About Peoples:
Peoples Financial Services Corp. is the bank holding company of Peoples Security Bank and Trust Company, an independent community bank serving its retail and commercial customers through 39 full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations, and government entities. Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, and local and timely decision making. For more information visit psbt.com.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp. and its subsidiaries (collectively, “Peoples”) and other statements that are not historical facts that are considered “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential.” For these statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.
Peoples cautions you that undue reliance should not be placed on forward-looking statements and that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: macroeconomic trends, including interest rates and inflation and their effect on our investment values; the effects of any recession in the United States; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs or retaliatory tariffs; impairment charges relating to our investment portfolio; credit risks in connection with our lending activities; the economic health of our market area; our exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; our ability to maintain an adequate allowance for credit losses; access to liquidity; the strength of our customer deposit levels; unrealized losses; reliance on our subsidiaries; accounting procedures, policies and requirements; changes in the value of goodwill; future pension plan costs; our ability to retain key personnel; the strength of our disclosure controls and procedures; environmental liabilities; reliance on third-party vendors and service providers; competition from non-bank entities; the development and us of AI in business processes, services, and products; our ability to prevent, detect and respond to cybersecurity threats and incidents; a failure of information technology, whether due to a breach, cybersecurity incident, or ability to keep pace with growth and developments; our ability to comply with privacy and data protection requirements; changes in U.S. or regional economic conditions; our ability to compete effectively in our industry; the soundness of other financial institutions; adverse changes in laws and regulations; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; our ability to realize the anticipated benefits of our merger with FNCB Bancorp, Inc.; future acquisitions or a change in control; and other factors that may be described in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.
The forward-looking statements are made as of the date of this release, and, except as may be required byapplicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
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Summary DataPeoples Financial Services Corp.Five Quarter Trend (Unaudited)(In thousands, except share and per share data) Mar31 Dec31 Sept30 June30 Mar31 2025 2024 2024 2024 2024Key performance data:Share and per share amounts:Net income (loss) $ 1.49 $ 0.61 $ (0.43) $ 0.46 $ 0.49Core net income (1) $ 1.51 $ 0.99 $ 1.64 $ 0.59 $ 0.55Core net income (PPNR) (1) $ 1.83 $ 1.46 $ 1.83 $ 0.73 $ 0.79Cash dividends declared $ 0.62 $ 0.62 $ 0.62 $ 0.41 $ 0.41Book value $ 48.21 $ 46.94 $ 47.53 $ 48.29 $ 48.18Tangible book value (1) $ 37.35 $ 35.88 $ 36.24 $ 39.31 $ 39.20Market value:High $ 53.70 $ 58.76 $ 50.49 $ 46.25 $ 48.84Low $ 44.47 $ 44.73 $ 41.44 $ 36.26 $ 38.09Closing $ 44.47 $ 51.18 $ 46.88 $ 45.54 $ 43.11Market capitalization $ 444,499 $ 511,325 $ 468,549 $ 321,388 $ 304,238Common shares outstanding 9,995,483 9,990,724 9,994,648 7,057,258 7,057,258Selected ratios:Return on average stockholders' equity 12.70 % 5.07 % (3.58) % 3.87 % 4.09 %Core return on average stockholders' equity(1) 12.80 % 8.31 % 13.61 % 5.00 % 4.59 %Return on average tangible stockholders' equity 16.46 % 6.62 % (4.67) % 4.76 % 5.02 %Core return on average tangible stockholders' equity (1) 16.59 % 10.87 % 17.77 % 6.14 % 5.64 %Return on average assets 1.22 % 0.47 % (0.33) % 0.37 % 0.38 %Core return on average assets (1) 1.23 % 0.76 % 1.24 % 0.47 % 0.43 %Stockholders' equity to total assets 9.64 % 9.21 % 8.86 % 9.42 % 9.27 %Efficiency ratio (1)(2) 55.77 % 63.03 % 53.14 % 74.49 % 75.73 %Nonperforming assets to loans, net, and foreclosed assets 0.59 % 0.58 % 0.53 % 0.25 % 0.27 %Nonperforming assets to total assets 0.47 % 0.45 % 0.41 % 0.20 % 0.21 %Net charge-offs to average loans, net 0.09 % 0.09 % 0.01 % 0.01 % 0.00 %Allowance for credit losses to loans, net 1.03 % 1.05 % 0.97 % 0.81 % 0.79 %Interest-bearing assets yield (FTE) (3) 5.50 % 5.51 % 5.63 % 4.58 % 4.56 %Cost of funds 2.58 % 2.88 % 3.04 % 3.01 % 2.96 %Net interest spread (FTE) (3) 2.92 % 2.62 % 2.59 % 1.57 % 1.60 %Net interest margin (FTE) (3) 3.50 % 3.25 % 3.26 % 2.29 % 2.29 %
(1) See Reconciliation of Non-GAAP financial measures on pages 16-17.(2) Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment securities available for sale and net gains (losses) on sales of fixed assets.(3) Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.
Peoples Financial Services Corp.Consolidated Statements of Income (Unaudited)(In thousands, except per share data) Mar31 Mar31Three months ended 2025 2024Interest income:Interest and fees on loans:Taxable $ 55,212 $ 34,041Tax-exempt 2,245 1,418Interest and dividends on investment securities:Taxable 4,134 1,918Tax-exempt 396 371Dividends 41 2Interest on interest-bearing deposits in other banks 113 120Interest on federal funds sold 285 1,127Total interest income 62,426 38,997Interest expense:Interest on deposits 20,847 18,704Interest on short-term borrowings 225 262Interest on long-term debt 1,177 270Interest on subordinated debt 443 443Interest on junior subordinated debt 186Total interest expense 22,878 19,679Net interest income 39,548 19,318Provision for credit losses 200 708Net interest income after provision for credit losses 39,348 18,610Noninterest income:Service charges, fees, commissions and other 3,404 2,036Merchant services income 231 115Commissions and fees on fiduciary activities 537 551Wealth management income 650 361Mortgage banking income 114 92Increase in cash surrender value of life insurance 526 279Interest rate swap income (loss) 43 (24)Net gains (losses) on equity investments 71 (8)Net gains (losses) on sale of fixed assets 680 (9)Total noninterest income 6,256 3,393Noninterest expense:Salaries and employee benefits expense 13,481 8,839Net occupancy and equipment expense 6,610 4,716Acquisition related expenses 154 486Amortization of intangible assets 1,683Other expenses 5,425 4,018Total noninterest expense 27,353 18,059Income before income taxes 18,251 3,944Provision for income tax expense 3,242 478Net income $ 15,009 $ 3,466Other comprehensive income:Unrealized gains (losses) on investment securities available for sale $ 5,572 $ (2,441)Change in derivative fair value (148) 1,079Income tax expense (benefit) related to other comprehensive income (loss) 1,183 (298)Other comprehensive income (loss), net of income tax expense (benefit) 4,241 (1,064)Comprehensive income $ 19,250 $ 2,402Share and per share amounts:Net income – basic $ 1.50 $ 0.49Net income – diluted 1.49 0.49Cash dividends declared $ 0.62 $ 0.41Average common shares outstanding – basic 9,992,922 7,052,912Average common shares outstanding – diluted 10,043,186 7,102,112
Peoples Financial Services Corp.Consolidated Statements of Income (Loss) (Unaudited)(In thousands, except per share data) Mar31 Dec31 Sept30 June30 Mar31Threemonthsended 2025 2024 2024 2024 2024Interest income:Interest and fees on loans:Taxable $ 55,212 $ 57,048 $ 59,412 $ 34,406 $ 34,041Tax-exempt 2,245 2,238 2,299 1,399 1,418Interest and dividends on investment securities:Taxable 4,134 4,359 4,732 1,904 1,918Tax-exempt 396 397 411 371 371Dividends 41 40 62 2 2Interest on interest-bearing deposits in other banks 113 113 150 115 120Interest on federal funds sold 285 1,608 1,218 179 1,127Total interest income 62,426 65,803 68,284 38,376 38,997Interest expense:Interest on deposits 20,847 24,718 26,398 18,114 18,704Interest on short-term borrowings 225 474 550 633 262Interest on long-term debt 1,177 1,389 1,389 269 270Interest on subordinated debt 443 444 443 444 443Interest on junior subordinated debt 186 267 260Total interest expense 22,878 27,292 29,040 19,460 19,679Net interest income 39,548 38,511 39,244 18,916 19,318Provision for credit losses 200 3,369 14,458 596 708Net interest income after provision for credit losses 39,348 35,142 24,786 18,320 18,610Noninterest income:Service charges, fees, commissions and other 3,404 3,368 3,384 1,885 2,036Merchant services income 231 298 223 260 115Commissions and fees on fiduciary activities 537 553 649 517 551Wealth management income 650 633 708 416 361Mortgage banking income 114 126 84 87 92Increase in cash surrender value of life insurance 526 456 551 286 279Interest rate swap income (loss) 43 260 (53) 102 (24)Net gains (losses) on equity investments 71 (23) 175 (12) (8)Net gains on sale of investment securities available for sale 1Net gains (losses) on sale of fixed assets 680 (165) (3) 13 (9)Total noninterest income 6,256 5,506 5,719 3,554 3,393Noninterest expense:Salaries and employee benefits expense 13,481 15,287 13,170 8,450 8,839Net occupancy and equipment expense 6,610 6,386 6,433 4,589 4,716Acquisition related expenses 154 4,990 9,653 1,071 486Amortization of intangible assets 1,683 1,702 1,665Other expenses 5,425 6,468 4,578 4,061 4,018Total noninterest expense 27,353 34,833 35,499 18,171 18,059Income (loss) before income taxes 18,251 5,815 (4,994) 3,703 3,944Income tax expense (benefit) 3,242 (272) (657) 421 478Net income (loss) $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Other comprehensive income (loss):Unrealized gain (loss) on investment securities available for sale $ 5,572 $ (10,175) $ 15,167 $ 18 $ (2,441)Reclassification adjustment for gains on available for sale securities included in net income (1)Change in benefit plan liabilities 1,518Change in derivative fair value (148) 817 (1,424) 160 1,079Income tax expense (benefit) related to other comprehensive (loss) income 1,183 (1,686) 3,008 38 (298)Other comprehensive income (loss), net of income tax expense (benefit) 4,241 (6,154) 10,734 140 (1,064)Comprehensive income (loss) $ 19,250 $ (67) $ 6,397 $ 3,422 $ 2,402Share and per share amounts:Net income – basic $ 1.50 $ 0.61 $ (0.43) $ 0.47 $ 0.49Net income – diluted 1.49 0.61 (0.43) 0.46 0.49Cash dividends declared $ 0.62 $ 0.62 $ 0.62 $ 0.41 $ 0.41Average common shares outstanding – basic 9,992,922 9,994,605 9,987,627 7,057,258 7,052,912Average common shares outstanding – diluted 10,043,186 10,051,337 10,044,449 7,114,115 7,102,112
Peoples Financial Services Corp.Net Interest Margin (Unaudited)(In thousands, fully taxable equivalent basis) Three Months Ended March 31, 2025 March 31, 2024 Average InterestIncome/ Yield/ Average InterestIncome/ Yield/ Balance Expense Rate Balance Expense RateAssets:Earning assets:Loans:Taxable $ 3,698,124 $ 55,212 6.05 % $ 2,632,554 $ 34,041 5.20 %Tax-exempt 280,555 2,842 4.11 225,293 1,795 3.20Total loans 3,978,679 58,054 5.92 2,857,847 35,836 5.04Investments:Taxable 555,910 4,175 3.05 446,996 1,920 1.73Tax-exempt 87,072 501 2.33 86,864 470 2.18Total investments 642,982 4,676 2.95 533,860 2,390 1.80Interest-bearing deposits 11,197 113 4.09 9,025 120 5.35Federal funds sold 25,979 285 4.45 80,955 1,127 5.60Total earning assets 4,658,837 63,128 5.50 % 3,481,687 39,473 4.56 %Less: allowance for credit losses 42,084 22,290Other assets 391,924 217,353Total assets $ 5,008,677 $ 63,128 $ 3,676,750 $ 39,473Liabilities and Stockholders' Equity:Interest-bearing liabilities:Money market accounts $ 687,522 $ 6,570 3.88 % $ 754,889 $ 7,135 3.80 %Interest-bearing demand and NOW accounts 1,465,210 6,416 1.78 784,458 4,837 2.48Savings accounts 498,791 361 0.29 422,815 275 0.26Time deposits less than $100 424,363 4,228 4.04 409,192 4,337 4.26Time deposits $100 or more 361,469 3,272 3.67 222,459 2,120 3.83Total interest-bearing deposits 3,437,355 20,847 2.46 2,593,813 18,704 2.90Short-term borrowings 20,176 225 4.52 19,687 262 5.35Long-term debt 97,769 1,177 4.88 25,000 270 4.34Subordinated debt 33,000 443 5.44 33,000 443 5.40Junior subordinated debt 8,050 186 9.37Total borrowings 158,995 2,031 5.18 77,687 975 5.05Total interest-bearing liabilities 3,596,350 22,878 2.58 % 2,671,500 19,679 2.96 %Noninterest-bearing deposits 875,053 616,610Other liabilities 58,018 47,688Stockholders' equity 479,256 340,952Total liabilities and stockholders' equity $ 5,008,677 $ 3,676,750Net interest income/spread $ 40,250 2.92 % $ 19,794 1.60 %Net interest margin 3.50 % 2.29 %Tax-equivalent adjustments:Loans $ 597 $ 377Investments 105 99Total adjustments $ 702 $ 476
The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.
Peoples Financial Services Corp.Details of Net Interest Income and Net Interest Margin (Unaudited)(In thousands, fully taxable equivalent basis) Mar31 Dec31 Sept30 June30 Mar31Threemonthsended 2025 2024 2024 2024 2024Net interest income:Interest income:Loans, net:Taxable $ 55,212 $ 57,048 $ 59,412 $ 34,406 $ 34,041Tax-exempt 2,842 2,834 2,910 1,771 1,795Total loans, net 58,054 59,882 62,322 36,177 35,836Investments:Taxable 4,175 4,399 4,794 1,906 1,920Tax-exempt 501 502 520 469 470Total investments 4,676 4,901 5,314 2,375 2,390Interest on interest-bearing balances in other banks 113 113 150 115 120Federal funds sold 285 1,608 1,218 179 1,127Total interest income 63,128 66,504 69,004 38,846 39,473Interest expense:Deposits 20,847 24,718 26,398 18,114 18,704Short-term borrowings 225 474 550 633 262Long-term debt 1,177 1,389 1,389 269 270Subordinated debt 443 444 443 444 443Junior subordinated debt 186 267 260Total interest expense 22,878 27,292 29,040 19,460 19,679Net interest income $ 40,250 $ 39,212 $ 39,964 $ 19,386 $ 19,794Loans, net:Taxable 6.05 % 6.04 % 6.24 % 5.25 % 5.20 %Tax-exempt 4.11 % 4.05 % 4.16 % 3.20 % 3.20 %Total loans, net 5.92 % 5.90 % 6.09 % 5.09 % 5.04 %Investments:Taxable 3.05 % 3.23 % 3.12 % 1.73 % 1.73 %Tax-exempt 2.33 % 2.29 % 2.31 % 2.19 % 2.18 %Total investments 2.95 % 3.10 % 3.02 % 1.80 % 1.80 %Interest-bearing balances with banks 4.09 % 4.93 % 5.55 % 5.28 % 5.35 %Federal funds sold 4.45 % 4.94 % 5.26 % 5.68 % 5.60 %Total interest-earning assets 5.50 % 5.51 % 5.63 % 4.58 % 4.56 %Interest expense:Deposits 2.46 % 2.75 % 2.91 % 2.92 % 2.90 %Short-term borrowings 4.52 % 4.80 % 4.98 % 5.61 % 5.35 %Long-term debt 4.88 % 4.97 % 4.94 % 4.33 % 4.34 %Subordinated debt 5.44 % 5.35 % 5.34 % 5.41 % 5.40 %Junior subordinated debt 9.37 % 13.23 % 12.93 %Total interest-bearing liabilities 2.58 % 2.88 % 3.04 % 3.01 % 2.96 %Net interest spread 2.92 % 2.62 % 2.59 % 1.57 % 1.60 %Net interest margin 3.50 % 3.25 % 3.26 % 2.29 % 2.29 %
Peoples Financial Services Corp.Consolidated Balance Sheets (Unaudited)(In thousands) Mar31 Dec31 Sept30 June30 Mar31Atperiodend 2025 2024 2024 2024 2024Assets:Cash and due from banks $ 60,125 $ 47,029 $ 97,090 $ 41,234 $ 32,009Interest-bearing balances in other banks 9,196 8,593 10,286 8,722 8,259Federal funds sold 7,781 80,229 178,093 69,700Investment securities:Available for sale 503,043 526,329 562,486 385,240 394,413Held to maturity 76,689 78,184 79,861 81,598 83,306Equity investments carried at fair value 2,500 2,430 3,921 78 91Total investments 582,232 606,943 646,268 466,916 477,810Loans held for sale 420 803 300Loans 3,991,539 3,993,505 4,069,683 2,869,553 2,858,412Less: allowance for credit losses 41,054 41,776 39,341 23,123 22,597Net loans 3,950,485 3,951,729 4,030,342 2,846,430 2,835,815Goodwill 75,986 75,986 76,958 63,370 63,370Premises and equipment, net 72,492 73,283 75,877 58,565 59,097Bank owned life insurance 87,953 87,429 87,401 49,955 49,673Deferred tax assets 32,628 35,688 33,078 14,460 14,241Accrued interest receivable 16,436 15,632 17,979 13,326 13,565Other intangible assets, net 32,488 34,197 35,907Other assets 71,136 74,919 70,056 53,077 45,299Total assets $ 4,999,358 $ 5,091,657 $ 5,360,138 $ 3,616,055 $ 3,669,138Liabilities:Deposits:Noninterest-bearing $ 901,398 $ 935,516 $ 927,864 $ 620,971 $ 623,408Interest-bearing 3,415,529 3,472,036 3,710,000 2,443,988 2,580,530Total deposits 4,316,927 4,407,552 4,637,864 3,064,959 3,203,938Short-term borrowings 14,840 15,900 37,346 104,250 20,260Long-term debt 88,403 98,637 111,489 25,000 25,000Subordinated debt 33,000 33,000 33,000 33,000 33,000Junior subordinated debt 8,063 8,039 8,015Accrued interest payable 5,439 5,503 6,829 5,507 5,327Other liabilities 50,832 54,076 50,544 42,532 41,621Total liabilities 4,517,504 4,622,707 4,885,087 3,275,248 3,329,146Stockholders' equity:Common stock 20,014 19,995 19,993 14,122 14,122Capital surplus 250,488 250,695 250,578 122,449 122,162Retained earnings 247,806 238,955 239,021 249,511 249,123Accumulated other comprehensive loss (36,454) (40,695) (34,541) (45,275) (45,415)Total stockholders' equity 481,854 468,950 475,051 340,807 339,992Total liabilities and stockholders' equity $ 4,999,358 $ 5,091,657 $ 5,360,138 $ 3,616,055 $ 3,669,138
Peoples Financial Services Corp.Loan and Asset Quality Data (Unaudited)(In thousands) Mar 31 Dec 31 Sept 30 June 30 Mar 31At period end 2025 2024 2024 2024 2024CommercialTaxable $ 570,966 $ 556,630 $ 616,369 $ 411,112 $ 400,439Non-taxable 282,031 279,390 273,710 220,893 224,083Total 852,997 836,020 890,079 632,005 624,522Real estateCommercial real estate 2,275,241 2,294,113 2,309,588 1,793,652 1,794,086Residential 560,067 551,383 550,590 369,671 361,490Total 2,835,308 2,845,496 2,860,178 2,163,323 2,155,576ConsumerIndirect Auto 108,819 117,914 130,380 66,792 71,675Consumer Other 14,209 14,955 15,580 7,433 6,639Total 123,028 132,869 145,960 74,225 78,314Equipment Financing 180,206 179,120 173,466Total $ 3,991,539 $ 3,993,505 $ 4,069,683 $ 2,869,553 $ 2,858,412
Mar31 Dec31 Sept30 June30 Mar31Atquarterend 2025 2024 2024 2024 2024Nonperforming assets:Nonaccrual/restructured loans $ 23,002 $ 22,499 $ 20,949 $ 7,116 $ 7,056Accruing loans past due 90 days or more 655 458 569 656Foreclosed assets 27 27 27 27Total nonperforming assets $ 23,684 $ 22,984 $ 21,545 $ 7,143 $ 7,712 Mar31 Dec31 Sept30 June30 Mar31Three months ended 2025 2024 2024 2024 2024Allowance for credit losses:Beginning balance $ 41,776 $ 39,341 $ 23,123 $ 22,597 $ 21,895Merger-related adjustments – Non PCD Loans 14,328Merger-related adjustments – PCD Loans 1,841Charge-offs 1,233 1,108 534 135 108Recoveries 311 174 453 65 102Provision for credit losses 200 3,369 130 596 708Ending balance $ 41,054 $ 41,776 $ 39,341 $ 23,123 $ 22,597
Peoples Financial Services Corp.Deposit and Liquidity Detail (Unaudited)(In thousands) Mar 31 Dec 31 Sept 30 June 30 Mar 31At period end 2025 2024 2024 2024 2024Interest-bearing deposits:Money market accounts $ 967,661 $ 936,239 $ 1,018,575 $ 690,631 $ 759,305Interest-bearing demand and NOW accounts 1,177,507 1,238,853 1,229,083 715,890 754,673Savings accounts 502,851 492,180 509,412 397,827 415,459Time deposits less than $250 599,127 620,725 824,791 504,879 517,009Time deposits $250 or more 168,383 184,039 128,139 134,761 134,084Total interest-bearing deposits 3,415,529 3,472,036 3,710,000 2,443,988 2,580,530Noninterest-bearing deposits 901,398 935,516 927,864 620,971 623,408Total deposits $ 4,316,927 $ 4,407,552 $ 4,637,864 $ 3,064,959 $ 3,203,938
March 31, 2025At period end Amount Percent of Total Number of accounts Average BalanceDeposit Detail:Retail $ 1,813,048 42.0 % 96,387 $ 19Commercial 1,540,565 35.7 18,472 83Municipal 728,027 16.8 2,422 301Brokered 235,287 5.5 26 9,050Total Deposits $ 4,316,927 100.0 % 117,307 $ 37Uninsured $ 1,294,829 30.0 %Insured 3,022,098 70.0 December 31, 2024At period end Amount Percent of Total Number of accounts Average BalanceDeposit Detail:Retail $ 1,779,729 40.4 % 98,583 $ 18Commercial 1,538,757 34.9 18,675 82Municipal 832,665 18.9 2,427 343Brokered 256,401 5.8 28 9,157Total Deposits $ 4,407,552 100.0 % 119,713 $ 37Uninsured $ 1,381,492 31.3 %Insured 3,026,060 68.7
Total AvailableAt March 31, 2025 Total Available Outstanding for Future LiquidityFHLB advances (1) $ 1,623,698 $ 507,127 $ 1,116,571Federal Reserve – Discount Window 583,213 583,213Correspondent bank lines of credit 18,000 18,000Other sources of liquidity:Brokered deposits 749,904 235,287 514,617Unencumbered securities 167,629 167,629Total sources of liquidity $ 3,142,444 $ 742,414 $ 2,400,030
(1) Outstanding balance ofFHLB advances includes letters of credit used to collateralize public fund deposits.
Peoples Financial Services Corp.Consolidated Balance Sheets (Unaudited)(In thousands) Mar31 Dec31 Sept30 June30 Mar31Averagequarterlybalances 2025 2024 2024 2024 2024Assets:Loans, net:Taxable $ 3,698,124 $ 3,757,273 $ 3,790,138 $ 2,637,164 $ 2,632,554Tax-exempt 280,555 278,429 278,496 222,655 225,293Total loans, net 3,978,679 4,035,702 4,068,634 2,859,819 2,857,847Investments:Taxable 555,910 541,526 611,032 443,146 446,996Tax-exempt 87,072 87,419 89,532 86,418 86,864Total investments 642,982 628,945 700,564 529,564 533,860Interest-bearing balances with banks 11,197 9,116 10,820 8,763 9,025Federal funds sold 25,979 129,517 92,171 12,672 80,955Total interest-earning assets 4,658,837 4,803,280 4,872,189 3,410,818 3,481,687Other assets 349,840 400,179 419,005 198,248 195,063Total assets $ 5,008,677 $ 5,203,459 $ 5,291,194 $ 3,609,066 $ 3,676,750Liabilities and stockholders' equity:Deposits:Interest-bearing $ 3,437,355 $ 3,573,321 $ 3,607,405 $ 2,496,298 $ 2,593,813Noninterest-bearing 875,053 904,274 908,776 620,256 616,610Total deposits 4,312,408 4,477,595 4,516,181 3,116,554 3,210,423Short-term borrowings 20,176 39,319 43,895 45,383 19,687Long-term debt 97,769 111,135 111,804 25,000 25,000Subordinated debt 33,000 33,000 33,000 33,000 33,000Junior subordinated debt 8,050 8,026 8,000Other liabilities 58,018 56,445 96,177 48,630 47,688Total liabilities 4,529,421 4,725,520 4,809,057 3,268,567 3,335,798Stockholders' equity 479,256 477,939 482,137 340,499 340,952Total liabilities and stockholders' equity $ 5,008,677 $ 5,203,459 $ 5,291,194 $ 3,609,066 $ 3,676,750
Peoples Financial Services Corp.Reconciliation of Non-GAAP Financial Measures (Unaudited)(In thousands, except share and per share data) Mar31 Dec31 Sept30 June30 Mar31Threemonthsended 2025 2024 2024 2024 2024Core net income per share:Net income (loss) GAAP $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 154 4,990 9,653 1,071 486Less: Acquisition related expenses tax adjustment 34 1,089 1,270 122 59Core net income $ 15,129 $ 9,988 $ 16,489 $ 4,231 $ 3,893Average common shares outstanding – diluted 10,043,186 10,051,337 10,044,449 7,114,115 7,102,112Core net income per share $ 1.51 $ 0.99 $ 1.64 $ 0.59 $ 0.55Tangible book value:Total stockholders' equity $ 481,854 $ 468,950 $ 475,051 $ 340,807 $ 339,992Less: Goodwill 75,986 76,325 76,958 63,370 63,370Less: Other intangible assets, net 32,488 34,197 35,907Total tangible stockholders' equity $ 373,380 $ 358,428 $ 362,186 $ 277,437 $ 276,622Common shares outstanding 9,995,483 9,990,724 9,994,648 7,057,258 7,057,258Tangible book value per share $ 37.35 $ 35.88 $ 36.24 $ 39.31 $ 39.20Core return on average stockholders' equity:Net income (loss) GAAP $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 154 4,990 9,653 1,071 486Less: Acquisition related expenses tax adjustment 34 1,089 1,270 122 59Core net income $ 15,129 $ 9,988 $ 16,489 $ 4,231 $ 3,893Average stockholders' equity $ 479,256 $ 477,939 $ 482,137 $ 340,499 $ 340,952Core return on average stockholders' equity 12.80 % 8.31 % 13.61 % 5.00 % 4.59 %Return on average tangible stockholders' equity:Net income (loss) GAAP $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Average stockholders' equity $ 479,256 $ 477,939 $ 482,137 $ 340,499 $ 340,952Less: average intangibles 109,386 112,399 113,032 63,370 63,370Average tangible stockholders' equity $ 369,870 $ 365,540 $ 369,105 $ 277,129 $ 277,582Return on average tangible stockholders' equity 16.46 % 6.62 % (4.67) % 4.76 % 5.02 %Core return on average tangible stockholders' equity:Net income (loss) GAAP $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 154 4,990 9,653 1,071 486Less: Acquisition related expenses tax adjustment 34 1,089 1,270 122 59Core net income $ 15,129 $ 9,988 $ 16,489 $ 4,231 $ 3,893Average stockholders' equity $ 479,256 $ 477,939 $ 482,137 $ 340,499 $ 340,952Less: average intangibles 109,386 112,399 113,032 63,370 63,370Average tangible stockholders' equity $ 369,870 $ 365,540 $ 369,105 $ 277,129 $ 277,582Core return on average tangible stockholders' equity 16.59 % 10.87 % 17.77 % 6.14 % 5.64 %Core return on average assets:Net income (loss) GAAP $ 15,009 $ 6,087 $ (4,337) $ 3,282 $ 3,466Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 154 4,990 9,653 1,071 486Less: Acquisition related expenses tax adjustment 34 1,089 1,270 122 59Core net income $ 15,129 $ 9,988 $ 16,489 $ 4,231 $ 3,893Average assets $ 5,008,677 $ 5,203,459 $ 5,291,194 $ 3,609,066 $ 3,676,750Core return on average assets 1.23 % 0.76 % 1.24 % 0.47 % 0.43 %Pre-provision net revenue (PPNR) per share:Income (Loss) before taxes (GAAP) $ 18,251 $ 5,815 $ (4,994) $ 3,703 $ 3,944Add: ACL provision for FNCB acquired legacy loans 14,328Add: Provision for credit losses 200 3,369 130 596 708Add: Provision for credit losses on unfunded commitments (202) 452 (785) (197) 487PPNR (non-GAAP) $ 18,249 $ 9,636 $ 8,679 $ 4,102 $ 5,139Average common shares outstanding-diluted 10,043,186 10,051,337 10,044,449 7,114,115 7,102,112PPNR per share (non-GAAP) $ 1.82 $ 0.96 $ 0.86 $ 0.58 $ 0.72Core pre-provision net revenue (PPNR) per share:Income (Loss) before taxes (GAAP) $ 18,251 $ 5,815 $ (4,994) $ 3,703 $ 3,944Add: Acquisition related expenses 154 4,990 9,653 1,071 486Add: ACL provision for FNCB acquired legacy loans 14,328Add: Provision for credit losses 200 3,369 130 596 708Add: Provision for credit losses on unfunded commitments (202) 452 (785) (197) 487Core PPNR (non-GAAP) $ 18,403 $ 14,626 $ 18,332 $ 5,173 $ 5,625Average common shares outstanding-diluted 10,043,186 10,051,337 10,044,449 7,114,115 7,102,112Core PPNR per share (non-GAAP) $ 1.83 $ 1.46 $ 1.83 $ 0.73 $ 0.79
(1) Current quarter tax adjustments use a rate of 21.8%, prior quarters use the effective tax rate for the quarter.
Peoples Financial Services Corp.Reconciliation of Non-GAAP Financial Measures (Unaudited)(In thousands, except share and per share data)The following tables reconcile the non-GAAP financial measures ofFTEnet interest income for the three months ended March 31, 2025 and 2024:Three months ended March 31 2025 2024Interest income (GAAP) $ 62,426 $ 38,997Adjustment to FTE 702 476Interest income adjusted to FTE (non-GAAP) 63,128 39,473Interest expense 22,878 19,679Net interest income adjusted to FTE (non-GAAP) $ 40,250 $ 19,794
The efficiency ratio isnoninterestexpenses, less amortization of intangible assets and acquisition related costs, as a percentage ofFTEnet interest income plusnoninterestincome. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three months ended March 31, 2025 and 2024:Three months ended March 31 2025 2024Efficiency ratio (non-GAAP):Noninterest expense (GAAP) $ 27,353 $ 18,059Less: Amortization of intangible assets expense 1,683Less: Acquisition related expenses 154 486Noninterest expense (non-GAAP) 25,516 17,573Net interest income (GAAP) 39,548 19,318Plus: Taxable equivalent adjustment 702 476Noninterest income (GAAP) 6,256 3,393Less: Net gains (losses) on equity securities 71 (8)Less: Gains (losses) on sale of fixed assets 680 (9)Net interest income (FTE) plus noninterest income (non-GAAP) $ 45,755 $ 23,204Efficiency ratio (non-GAAP) 55.77 % 75.73 %
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