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 and nine months ended September 30, 2025.
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Peoples reported net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025, compared to net income of $17.0 million, or $1.68 per diluted share for the three months ended June 30, 2025 and a net loss of $4.3 million, or $0.43 per diluted share for the three months ended September 30, 2024. Return on average assets (“ROAA”) and return on average equity (“ROAE”) on an annualized basis for the three months ended September 30, 2025, was 1.19% and 12.02% compared to 1.36% and 13.87% for the three months ended June 30, 2025, and (0.33)% and (3.58)% for the three months ended September 30, 2024. Net income in the current quarter was negatively impacted by the recognition of a $0.6 million pre-tax loss on the pending sale of several administrative properties along with higher occupancy expenses associated with the Company's transition into its new headquarters. Net income in the third quarter of 2024 included $9.7 million in acquisition-related expenses.
For the nine months ended September 30, 2025, net income was $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the comparable period of 2024. The increase in net income for the current year to date period of $44.8 million was due primarily to higher net interest income and noninterest income, and a lower provision for credit losses which more than offset an increase in noninterest expenses. On July 1, 2024, the Company completed its merger with FNCB Bancorp, Inc. (“FNCB,” such merger the “FNCB merger”). Higher levels of interest-earning assets, higher transaction volumes and purchase accounting related accretion resulting from the FNCB merger resulted in the increase in net interest income and noninterest income when compared to the prior year period.
“We are extremely pleased with another strong quarter driven by disciplined credit quality and balance sheet management,” stated Gerard A. Champi, Chief Executive Officer. “We are building for the future with a focus on efficiency, enhanced customer service and long-term growth as we centralize operations in our new corporate headquarters.”
The Company's consolidated financial results for any periods ended or including periods prior to July 1, 2024, do not reflect the financial results of FNCB and its subsidiaries.
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 and merger-related adjustments to the allowance for credit losses (“ACL”) for nonrecurring provisions for purchase credit deteriorated (“PCD”) and non-PCD loans. 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.
NOTABLES IN THE QUARTER
— Non-performing assets to total assets improved to 0.33% at September 30, 2025 compared to 0.34% at June 30, 2025 and 0.45% at December 31, 2024, and non-performing assets to total loans, net and foreclosed assets improved to 0.42% at September 30, 2025 compared to 0.44% at June 30, 2025 and 0.58% at December 31, 2024.
— ROAE on an annualized basis was 12.02% for the three months ended September 30, 2025 compared to 13.87% for the three months ended June 30, 2025, and (3.58)% for the three months ended September 30, 2024.
— ROAA on an annualized basis was 1.19% for the three months ended September 30, 2025 compared to 1.36% for the three months ended June 30, 2025, and (0.33)% for the three months ended September 30, 2024.
— Book value per common share at September 30, 2025 increased to $50.95 as compared to $49.44 and $47.53 at June 30, 2025, and September 30, 2024, respectively.
— Tangible book value per common share, a non-GAAP measure1, increased to $40.43 on September 30, 2025, compared to $38.75 and $36.24 at June 30, 2025, and September 30, 2024, respectively.
— Loans increased $18.8 million, or 1.9%, on an annualized basis during the three months ended September 30, 2025.
— The Company completed its move to new corporate headquarters in Moosic, PA.
INCOME STATEMENT REVIEW
— Net interest margin (“NIM”), calculated on a fully taxable equivalent (“FTE”) basis, a non-GAAP measure1, for the three months ended September 30, 2025, was 3.54%, an increase of 28 basis points compared to 3.26% for the three months ended September 30, 2024.
— The tax-equivalent yield on interest-earning assets, a non-GAAP measure1, decreased 7 basis points to 5.56% for the three months ended September 30, 2025, from 5.63% for the three months ended September 30, 2024.
— The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 28 basis points to 2.64% for the three months ended September 30, 2025, when compared to 2.89% for the three months ended September 30, 2024.
— The cost of interest-bearing deposits decreased 37 basis points for the three months ended September 30, 2025 to 2.39% from 2.76% in the three months ended September 30, 2024.
— The cost of total deposits, which includes the impact of noninterest-bearing deposits was 1.88% for the three months ended September 30, 2025, a decrease of 45 basis points from 2.33% for the three months ended September 30, 2024.
— The efficiency ratio1 was 56.52% for the three months ended September 30, 2025, compared to 53.14% for the three months ended September 30, 2024.
Third Quarter 2025 Results – Comparison to Third Quarter 2024
Net interest income on an FTE basis for the three months ended September 30, 2025 increased $1.9 million to $41.9 million from $40.0 million for the three months ended September 30, 2024. The increase in FTE net interest income was due to a $3.1 million decrease in tax-equivalent interest income, a non-GAAP measure1, that was more than offset by a $5.0 million decrease in interest expense.
The reduction in FTE interest income resulted primarily from decreases in average loan, investment and federal funds sold balances, coupled with a reduction in accretion associated with purchase accounting fair value discounts. Average loans, net, decreased $62.6 million for the three months ended September 30, 2025, compared to the prior year three-month period ended September 30, 2024. Average investments totaled $651.8 million in the three months ended September 30, 2025, and $700.6 million in the three months ended September 30, 2024, a decrease of $48.8 million. Average federal funds sold decreased $58.7 million to $33.5 million for the three months ended September 30, 2025, from $92.2 million for the three months ended September 30, 2024. Accretion associated with purchase accounting fair value discounts on purchased loans was $3.7 million for the three months ended September 30, 2025, a decrease of $1.0 million from $4.7 million for the same period of 2024.
The decrease in interest expense, comparing the three month periods ended September 30, 2025, and September 30, 2024, was due primarily to decreases in average deposit rates, coupled with a reduction in higher cost brokered deposits, partially offset by increases in average volumes and rates on borrowed funds, which were largely related to the net new issuance of subordinated debt in the second quarter of 2025. Average interest-bearing deposits decreased $448.8 million and represented 78.7% of total average deposits for the three months ended September 30, 2025, as compared to 84.2% for the three months ended September 30, 2024. Average brokered deposits decreased $210.9 million to $178.6 million for the three months ended September 30, 2025, from $389.5 million for the comparable three-month period of 2024. Average noninterest bearing deposits increased $191.6 million and represented 21.3% of total average deposits in the three months ended September 30, 2025, as compared to 15.8% in the three months ended September 30, 2024.
Average total borrowings increased $53.3 million for the three months ended September 30, 2025, as compared to the same period of 2024, which was primarily due to the new issuance of subordinated debt which occurred in the second quarter of 2025. Additionally, the Company's cost of borrowings increased 67 basis points to 6.01% for the three months ended September 30, 2025, compared to 5.34% for the same three months of 2024. In June 2025, the Company called and redeemed $33 million of its subordinated notes due in June 2030 that repriced to 9.08% and issued $85 million in fixed-to-floating rate subordinated notes due June 2035 at an initial fixed rate through June 2030 of 7.75%.
Short-term borrowings averaged $29.2 million for the three-month period ended September 30, 2025, at an average cost of 4.63% compared to $43.9 million at an average cost of 4.98% during the comparable three-month period in 2024. Long-term debt averaged $129.5 million for the three-month period ended September 30, 2025, at an average cost of 4.62% compared to $111.8 million at an average cost of 4.94% for the three months ended September 30, 2024. Subordinated debt averaged $83.1 million for the three-month period ended September 30, 2025, at an average cost of 8.34% compared to $33.0 million at an average cost of 5.34% for the three months ended September 30, 2024.
For the three months ended September 30, 2025, $0.8 million was credited to the provision for credit losses compared to an expense of $14.5 million in the prior year's same quarter. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The provision for the third quarter of 2024 included a non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger.
Noninterest income was $5.5 million and $5.7 million for the three months ended September 30, 2025, and 2024, respectively. The current year quarter includes a $0.6 million loss on the pending sale of administrative offices, as the Company has commenced consolidating operations to a new corporate center. The prior year quarter included gains of $0.2 million on equity investments versus a negligible loss in the current year's quarter. Wealth management income increased $0.2 million and interest rate swap income increased $0.2 million due to an increase in transactions.
Noninterest expense decreased $6.8 million to $28.7 million for the three months ended September 30, 2025, from $35.5 million for the three months ended September 30, 2024, which primarily reflected a reduction in acquisition-related expenses partially offset by increases in salaries and employee benefits, occupancy and equipment expenses and other expenses. Acquisition-related expenses were $9.7 million in the quarter ended September 30, 2024, with only negligible expenses in the current year's quarter. Salaries and employee benefits increased $0.9 million to $14.1 million for the three months ended September 30, 2025 from $13.2 million for the same three months of 2024 due primarily to higher incentive compensation accruals. Net occupancy and equipment expenses increased $0.8 million from the prior year's quarter, which included higher lease and maintenance expenses. Other expenses increased $1.4 million to $5.2 million for the quarter ending September 30, 2025, from $3.8 million for the prior year's quarter. The increase in other expenses was primarily related to an increase in the provision for unfunded commitments. The Company recorded a provision for unfunded commitments of $0.2 million in the third quarter of 2025 compared to a credit to the provision for unfunded commitments of $0.8 million for the same quarter of 2024.
Income tax expense was $3.6 million for the three months ended September 30, 2025, compared to a benefit of $0.7 million for the three months ended September 30, 2024. The effective tax rate was 19.1% for the three months ended September 30, 2025, and 13.2% of pre-tax loss for the three months ended September 30, 2024, respectively.
Nine-Month Results – Comparison to Prior Year First Nine Months
Net interest income for the nine months ended September 30, 2025 increased $45.4 million to $122.9 million from $77.5 million for the nine months ended September 30, 2024. FTE net interest income, a non-GAAP measure1, for the nine months ended September 30, 2025 increased $45.9 million to $125.0 million from $79.1 million for the nine months ended September 30, 2024.
Tax-equivalent interest income, a non-GAAP measure1, increased $47.7 million to $195.1 million due to higher levels of interest-earning assets such as loans and investments and an additional $7.4 million from accretion of purchase accounting marks on loans. Average loans increased $726.4 million and average investments increased $52.0 million comparing the nine months ended September 30, 2025 and 2024, primarily due to assets the Company acquired in the FNCB merger. The tax-equivalent yield on interest-earning assets, a non-GAAP measure1 was 5.58% for the first nine months of 2025 compared to 5.01% for the nine months ended September 30, 2024. Loan yields increased 49 basis points to 5.99% while investment yields increased 82 basis points to 3.11% for the nine months ended September 30, 2025.
Partially offsetting the increase in tax-equivalent interest income was a $1.8 million increase in interest expense to $70.0 million for the nine months ended September 30, 2025, from $68.2 million for the nine months ended September 30, 2024, which was primarily caused by higher volumes of interest-bearing liabilities, partially offset by a reduction in funding costs. Average interest-bearing liabilities increased $498.0 million to $3.6 billion from $3.1 billion comparing the year-to-date periods of 2025 and 2024, which reflected higher volumes of both deposits and borrowings. The cost of interest-bearing liabilities during the nine-month period ended September 30, 2025 decreased 33 basis points to 2.61% from 2.94% for the nine months ended September 30, 2024. The cost of interest-bearing deposit products decreased 43 basis points to 2.42% for the nine months ended September 30, 2025 from 2.85% for the comparable prior year period, while borrowing costs increased 44 basis points to 5.69% from 5.25% for the nine months ended September 30, 2024. The increase in the cost of borrowed funds was largely due to the previously mentioned issuance of new subordinated debt, partially offset by a reduction in market rates for short-term borrowings.
For the nine months ended September 30, 2025, a credit to the provision for credit losses of $0.9 million was recorded compared to a prior year provision of $15.8 million. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The prior year provision included non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger.
Noninterest income was $18.0 million for the nine months ended September 30, 2025 and $12.7 million for the comparable period ended September 30, 2024. The increase in non-interest income was attributable to the increased size and scale of the Company following the merger. Comparing the year-to-date periods of 2025 and 2024, service charges and fees increased $3.2 million. Wealth management income increased $0.7 million, BOLI cash surrender value increased $0.5 million and merchant services income increased $0.5 million.
Noninterest expense for the nine months ended September 30, 2025 was $84.3 million, an increase of $12.6 million from $71.7 million for the nine months ended September 30, 2024. Almost all noninterest expense line items increased as a result of the FNCB merger and the expanded operations of the combined Company. Salaries and employee benefits expenses increased $10.9 million compared to the year ago period due to the addition of 195 full-time employees from the FNCB merger. Occupancy and equipment expenses were higher by $4.4 million in the current period due to increased technology costs related to system integration and increased account and transaction volumes, and higher facilities costs. Amortization of intangible assets increased $3.2 million in the nine months ended September 30, 2025, on the amortization of merger-related intangibles, primarily core deposit intangibles. Partially offsetting these increases was a decrease in merger-related expenses to $0.2 million for the nine months ended September 30, 2025 from $11.2 million for the nine months ended September 30, 2024. The efficiency ratioa non-GAAP, measure1, improved to 55.38% for the nine months ended September 30, 2025 compared to 64.21% for the respective nine months of 2024.
The provision for income taxes for the nine months ended September 30, 2025 totaled $10.3 million and the effective tax rate was 17.9% as compared to $0.2 million and 9.1% in the prior period.
BALANCE SHEET REVIEW
At September 30, 2025, total assets, loans, and deposits were $5.2 billion, $4.0 billion, and $4.3 billion, respectively.
Total loans, which were $4.0 billion at September 30, 2025, increased $22.9 million as compared to December 31, 2024. Increases in commercial loans and residential real estate loans were partially offset by reductions in commercial real estate, equipment financing, and indirect auto loans.
Total investments were $610.3 million at September 30, 2025, compared to $606.9 million at December 31, 2024. At September 30, 2025, the available for sale securities totaled $534.5 million and the held to maturity securities totaled $73.3 million. The unrealized loss on the available for sale securities decreased $14.9 million from $49.0 million at December 31, 2024, to $34.1 million at September 30, 2025. The unrealized losses on the held to maturity portfolio totaled $9.7 million and $13.0 million at September 30, 2025, and December 31, 2024, respectively.
Total deposits decreased $117.8 million to $4.3 billion at September 30, 2025, due primarily to reductions in brokered CDs. Noninterest-bearing deposits decreased $23.5 million to $912.0 million at September 30, 2025, from $935.5 million at December 31, 2024, and interest-bearing deposits decreased $94.3 million to $3.4 billion at September 30, 2025, from $3.5 billion at December 31, 2024. Additionally, the Company had $162.2 million and $256.4 million of longer-term brokered CDs at September 30, 2025, and December 31, 2024, respectively. As part of strategic balance sheet management initiatives, the Company reduced its higher rate brokered CD portfolio by $94.2 million during the first nine months of 2025.
The Company's deposit base is diversified and consisted of 40.9% retail accounts, 36.4% commercial accounts, 18.9% municipal relationships and 3.8% brokered deposits at September 30, 2025. At September 30, 2025, total uninsured deposits were approximately $1.4 billion, or 32.3% of total deposits. Included in the uninsured total at September 30, 2025, were $398.6 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $1.4 million of affiliate company deposits.
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 September 30, 2025, available borrowing capacity totaled $1.1 billion at the FHLB and $388.3 million at the Federal Reserve's Discount Window. At September 30, 2025, the Company had $179.9 million in cash and cash equivalents, an increase of $44.1 million from $135.8 million at December 31, 2024. For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 16.
The Company maintained its well capitalized position at September 30, 2025. Stockholders' equity equaled $509.3 million or $50.95 per share at September 30, 2025, compared to $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 an $11.5 million decrease to accumulated other comprehensive loss (“AOCL”) resulting primarily 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 September 30, 2025, and December 31, 2024, was $26.7 million and $38.3 million, respectively.
Tangible book value, a non-GAAP measure1, increased to $40.43 per share at September 30, 2025, from $35.88 per share at December 31, 2024. Dividends declared for the nine months ended September 30, 2025 amounted to $1.86 per share.
ASSET QUALITY REVIEW
Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $16.8 million or 0.42% of loans, net, and foreclosed assets at September 30, 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 0.33% at September 30, 2025, compared to 0.45% at December 31, 2024. At September 30, 2025, the Company had one foreclosed commercial property recorded at $1.5 million compared to one foreclosed residential property recorded at $27 thousand at December 31, 2024.
During the nine months ended September 30, 2025, net charge-offs totaled $1.1 million and the Company recognized a credit to the provision for credit losses of $0.9 million. During the three months ended September 30, 2025, net charge-offs were $0.2 million and the credit to the provision for credit losses was $0.8 million. The allowance for credit losses equaled $39.8 million or 0.99% of loans, net, at September 30, 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.18-20.
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; political instability and the consequences thereof, such as the recent shutdown of the U.S. federal government; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs, retaliatory tariffs, tariff counter-measures, or the threat of such actions; 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 (or the threat of such 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 the FNCB merger; 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.
[TABULAR MATERIAL FOLLOWS]
Summary DataPeoples Financial Services Corp.Five Quarter Trend (Unaudited)(In thousands, except share and per share data) Sept30 June30 Mar31 Dec31 Sept30 2025 2025 2025 2024 2024Key performance data:Share and per share amounts:Net income (loss) $ 1.51 $ 1.68 $ 1.49 $ 0.61 $ (0.43)Core net income (1) $ 1.51 $ 1.69 $ 1.51 $ 0.99 $ 1.64Core net income (PPNR) (1) $ 1.81 $ 2.03 $ 1.83 $ 1.46 $ 1.83Cash dividends declared $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62Book value $ 50.95 $ 49.44 $ 48.21 $ 46.94 $ 47.53Tangible book value (1) $ 40.43 $ 38.75 $ 37.35 $ 35.88 $ 36.24Market value:High $ 53.69 $ 51.21 $ 53.70 $ 58.76 $ 50.49Low $ 46.90 $ 40.67 $ 44.47 $ 44.73 $ 41.44Closing $ 48.61 $ 49.37 $ 44.47 $ 51.18 $ 46.88Market capitalization $ 485,837 $ 493,438 $ 444,499 $ 511,325 $ 468,549Common shares outstanding 9,994,595 9,994,696 9,995,483 9,990,724 9,994,648Selected ratios:Return on average stockholders' equity 12.02 % 13.87 % 12.70 % 5.07 % (3.58) %Core return on average stockholders' equity(1) 12.03 % 13.92 % 12.80 % 8.31 % 13.61 %Return on average tangible stockholders' equity (1) 15.24 % 17.73 % 16.46 % 6.62 % (4.67) %Core return on average tangible stockholders' equity (1) 15.25 % 17.79 % 16.59 % 10.87 % 17.77 %Return on average assets 1.19 % 1.36 % 1.22 % 0.47 % (0.33) %Core return on average assets (1) 1.19 % 1.36 % 1.23 % 0.76 % 1.24 %Stockholders' equity to total assets 9.87 % 9.67 % 9.64 % 9.21 % 8.86 %Efficiency ratio (1)(2) 56.52 % 53.92 % 55.77 % 63.03 % 53.14 %Nonperforming assets to loans, net, and foreclosed assets 0.42 % 0.44 % 0.59 % 0.58 % 0.53 %Nonperforming assets to total assets 0.33 % 0.34 % 0.47 % 0.45 % 0.41 %Net charge-offs to average loans, net 0.02 % 0.00 % 0.09 % 0.09 % 0.01 %Allowance for credit losses to loans, net 0.99 % 1.02 % 1.03 % 1.05 % 0.97 %Interest-bearing assets yield (FTE) (3) 5.56 % 5.68 % 5.50 % 5.51 % 5.63 %Cost of funds 2.64 % 2.60 % 2.58 % 2.88 % 2.89 %Net interest spread (FTE) (3) 2.92 % 3.08 % 2.92 % 2.62 % 2.74 %Net interest margin (FTE) (1)(3) 3.54 % 3.69 % 3.50 % 3.25 % 3.26 %
(1) See Reconciliation of Non-GAAP financial measures on pages 18-20.(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) Sept30 Sept30Nine months ended 2025 2024Interest income:Interest and fees on loans:Taxable $ 170,292 $ 127,859Tax-exempt 6,698 5,116Interest and dividends on investment securities:Taxable 13,073 8,561Tax-exempt 1,332 1,153Dividends 128 59Interest on interest-bearing deposits in other banks 310 385Interest on federal funds sold 1,092 2,524Total interest income 192,925 145,657Interest expense:Interest on deposits 61,344 63,216Interest on short-term borrowings 976 1,444Interest on long-term debt 3,897 1,929Interest on subordinated debt 3,217 1,330Interest on junior subordinated debt 563 260Total interest expense 69,997 68,179Net interest income 122,928 77,478(Credit to) provision for credit losses (877) 15,762Net interest income after (credit to) provision for credit losses 123,805 61,716Noninterest income:Service charges, fees, commissions and other 10,454 7,304Merchant services income 1,136 598Commissions and fees on fiduciary activities 1,707 1,717Wealth management income 2,219 1,486Mortgage banking income 387 263Increase in cash surrender value of life insurance 1,604 1,116Interest rate swap income 389 25Net gains on equity investments 43 155Net gains on sale of fixed assets 65 1Total noninterest income 18,004 12,665Noninterest expense:Salaries and employee benefits expense 41,370 30,459Net occupancy and equipment expense 20,115 15,745Acquisition related expenses 236 11,210Amortization of intangible assets 4,882 1,665FDIC insurance and assessments 2,605 1,907Other expenses 15,085 10,742Total noninterest expense 84,293 71,728Income before income taxes 57,516 2,653Provision for income tax expense 10,305 242Net income $ 47,211 $ 2,411Other comprehensive income:Unrealized gains on investment securities available for sale $ 14,846 $ 12,744Reclassification adjustment for gains on available for sale securities included in net income (1)Change in derivative fair value (114) (185)Income tax expense related to other comprehensive income 3,213 2,748Other comprehensive income, net of income tax expense 11,519 9,810Comprehensive income $ 58,730 $ 12,221Share and per share amounts:Net income – basic $ 4.72 $ 0.30Net income – diluted 4.69 0.30Cash dividends declared $ 1.86 $ 1.44Average common shares outstanding – basic 9,994,175 8,039,734Average common shares outstanding – diluted 10,070,947 8,094,036
Peoples Financial Services Corp.Consolidated Statements of Income (Loss) (Unaudited)(In thousands, except per share data) Sept30 June30 Mar31 Dec31 Sept30Threemonthsended 2025 2025 2025 2024 2024Interest income:Interest and fees on loans:Taxable $ 57,621 $ 57,459 $ 55,212 $ 57,048 $ 59,411Tax-exempt 2,151 2,302 2,245 2,238 2,299Interest and dividends on investment securities:Taxable 4,335 4,604 4,134 4,359 4,739Tax-exempt 537 399 396 397 411Dividends 47 40 41 40 55Interest on interest-bearing deposits in other banks 101 96 113 113 150Interest on federal funds sold 372 435 285 1,608 1,218Total interest income 65,164 65,335 62,426 65,803 68,283Interest expense:Interest on deposits 20,194 20,303 20,847 24,718 26,398Interest on short-term borrowings 341 410 225 474 550Interest on long-term debt 1,509 1,211 1,177 1,389 1,389Interest on subordinated debt 1,748 1,026 443 444 443Interest on junior subordinated debt 189 188 186 267 260Total interest expense 23,981 23,138 22,878 27,292 29,040Net interest income 41,183 42,197 39,548 38,511 39,243(Credit to) provision for credit losses (838) (239) 200 3,369 14,458Net interest income after (credit to) provision for credit losses 42,021 42,436 39,348 35,142 24,785Noninterest income:Service charges, fees, commissions and other 3,386 3,664 3,404 3,368 3,384Merchant services income 321 584 231 298 223Commissions and fees on fiduciary activities 607 563 537 553 649Wealth management income 950 619 650 633 708Mortgage banking income 148 125 114 126 84Increase in cash surrender value of life insurance 543 535 526 456 551Interest rate swap income (loss) 182 164 43 260 (53)Net (losses) gains on equity investments (21) (7) 71 (23) 175Net gains on sale of investment securities available for sale 1Net (losses) gains on sale of fixed assets (615) 680 (165) (3)Total noninterest income 5,501 6,247 6,256 5,506 5,719Noninterest expense:Salaries and employee benefits expense 14,128 13,761 13,481 15,287 13,170Net occupancy and equipment expense 7,221 6,284 6,610 6,386 6,433Acquisition related expenses 16 66 154 4,990 9,653Amortization of intangible assets 1,515 1,684 1,683 1,702 1,665FDIC insurance and assessments 607 976 1,022 1,251 809Other expenses 5,191 5,491 4,403 5,217 3,768Total noninterest expense 28,678 28,262 27,353 34,833 35,498Income (loss) before income taxes 18,844 20,421 18,251 5,815 (4,994)Income tax expense (benefit) 3,598 3,465 3,242 (272) (657)Net income (loss) $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Other comprehensive income (loss):Unrealized gain (loss) on investment securities available for sale $ 7,415 $ 1,859 $ 5,572 $ (10,175) $ 15,167Reclassification adjustment for gains on available for sale securities included in net income (1)Change in benefit plan liabilities 1,518Change in derivative fair value 18 16 (148) 817 (1,424)Income tax expense (benefit) related to other comprehensive (loss) income 1,621 409 1,183 (1,686) 3,008Other comprehensive income (loss), net of income tax expense (benefit) 5,812 1,466 4,241 (6,154) 10,734Comprehensive income (loss) $ 21,058 $ 18,422 $ 19,250 $ (67) $ 6,397Share and per share amounts:Net income – basic $ 1.53 $ 1.70 $ 1.50 $ 0.61 $ (0.43)Net income – diluted 1.51 1.68 1.49 0.61 (0.43)Cash dividends declared $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62Average common shares outstanding – basic 9,994,629 9,994,955 9,992,922 9,994,605 9,987,627Average common shares outstanding – diluted 10,086,915 10,082,260 10,043,186 10,051,337 10,044,449
Peoples Financial Services Corp.Net Interest Margin (Unaudited)(In thousands, fully taxable equivalent basis) Three Months Ended September 30, 2025 September 30, 2024 Average InterestIncome/ Yield/ Average InterestIncome/ Yield/ Balance Expense Rate Balance Expense RateAssets:Earning assets:Loans:Taxable $ 3,736,269 $ 57,621 6.12 % $ 3,790,138 $ 59,411 6.24 %Tax-exempt 269,757 2,722 4.00 278,496 2,910 4.16Total loans 4,006,026 60,343 5.98 4,068,634 62,321 6.09Investments:Taxable 553,151 4,382 3.14 611,032 4,794 3.12Tax-exempt 98,608 680 2.74 89,532 520 2.31Total investments 651,759 5,062 3.08 700,564 5,314 3.02Interest-bearing deposits 9,441 101 4.24 10,820 150 5.55Federal funds sold 33,443 372 4.41 92,171 1,218 5.26Total earning assets 4,700,669 65,878 5.56 % 4,872,189 69,003 5.63 %Less: allowance for credit losses 41,576 37,535Other assets 408,385 456,540Total assets $ 5,067,478 $ 65,878 $ 5,291,194 $ 69,003Liabilities and Stockholders' Equity:Interest-bearing liabilities:Money market accounts $ 986,100 $ 7,542 3.03 % $ 906,842 $ 8,231 3.61 %Interest-bearing demand and NOW accounts 1,181,655 6,271 2.11 1,414,228 6,888 1.94Savings accounts 496,256 389 0.31 518,038 392 0.30Time deposits less than $100 341,825 2,923 3.39 687,511 6,279 3.63Time deposits $100 or more 347,723 3,069 3.50 275,786 4,608 6.65Total interest-bearing deposits 3,353,559 20,194 2.39 3,802,405 26,398 2.76Short-term borrowings 29,208 341 4.63 43,895 550 4.98Long-term debt 129,524 1,509 4.62 111,804 1,389 4.94Subordinated debt 83,149 1,748 8.34 33,000 443 5.34Junior subordinated debt 8,098 189 9.26 8,000 260 12.93Total borrowings 249,979 3,787 6.01 196,699 2,642 5.34Total interest-bearing liabilities 3,603,538 23,981 2.64 % 3,999,104 29,040 2.89 %Noninterest-bearing deposits 905,385 713,776Other liabilities 55,530 96,177Stockholders' equity 503,025 482,137Total liabilities and stockholders' equity $ 5,067,478 $ 5,291,194Net interest income/spread $ 41,897 2.92 % $ 39,963 2.74 %Net interest margin 3.54 % 3.26 %Tax-equivalent adjustments:Loans $ 571 $ 611Investments 143 109Total adjustments $ 714 $ 720
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.Net Interest Margin (Unaudited)(In thousands, fully taxable equivalent basis) Nine Months Ended September 30, 2025 September 30, 2024 Average InterestIncome/ Yield/ Average InterestIncome/ Yield/ Balance Expense Rate Balance Expense RateAssets:Earning assets:Loans:Taxable $ 3,714,153 $ 170,292 6.13 % $ 3,022,988 $ 127,859 5.65 %Tax-exempt 277,533 8,478 4.08 242,293 6,476 3.57Total loans 3,991,686 178,770 5.99 3,265,281 134,335 5.50Investments:Taxable 549,818 13,201 3.21 501,100 8,620 2.30Tax-exempt 90,902 1,686 2.48 87,612 1,459 2.22Total investments 640,720 14,887 3.11 588,712 10,079 2.29Interest-bearing deposits 9,935 310 4.17 9,541 385 5.39Federal funds sold 32,863 1,092 4.44 61,635 2,524 5.47Total earning assets 4,675,204 195,059 5.58 % 3,925,169 147,323 5.01 %Less: allowance for credit losses 41,830 27,660Other assets 399,098 294,186Total assets $ 5,032,472 $ 195,059 $ 4,191,695 $ 147,323Liabilities and Stockholders' Equity:Interest-bearing liabilities:Money market accounts $ 953,679 $ 21,104 2.96 % $ 792,391 $ 22,116 3.73 %Interest-bearing demand and NOW accounts 1,191,733 18,568 2.08 977,722 16,125 2.20Savings accounts 498,998 1,127 0.30 450,161 947 0.28Time deposits less than $100 389,807 11,142 3.82 475,194 19,420 5.46Time deposits $100 or more 353,753 9,403 3.55 271,765 4,608 2.26Total interest-bearing deposits 3,387,970 61,344 2.42 2,967,233 63,216 2.85Short-term borrowings 28,357 976 4.60 36,349 1,446 5.31Long-term debt 109,569 3,897 4.76 54,147 1,928 4.76Subordinated debt 57,440 3,217 7.49 33,000 1,330 5.38Junior subordinated debt 8,075 563 9.32 2,692 260 12.90Total borrowings 203,441 8,653 5.69 126,188 4,964 5.25Total interest-bearing liabilities 3,591,411 69,997 2.61 % 3,093,421 68,180 2.94 %Noninterest-bearing deposits 892,661 650,446Other liabilities 57,466 59,622Stockholders' equity 490,934 388,206Total liabilities and stockholders' equity $ 5,032,472 $ 4,191,695Net interest income/spread $ 125,062 2.97 % $ 79,143 2.07 %Net interest margin 3.58 % 2.69 %Tax-equivalent adjustments:Loans $ 1,780 $ 1,360Investments 354 306Total adjustments $ 2,134 $ 1,666
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) Sept30 June30 Mar31 Dec31 Sept30Threemonthsended 2025 2025 2025 2024 2024Net interest income:Interest income:Loans, net:Taxable $ 57,621 $ 57,459 $ 55,212 $ 57,048 $ 59,411Tax-exempt 2,722 2,914 2,842 2,834 2,910Total loans, net 60,343 60,373 58,054 59,882 62,321Investments:Taxable 4,382 4,644 4,175 4,399 4,794Tax-exempt 680 505 501 502 520Total investments 5,062 5,149 4,676 4,901 5,314Interest on interest-bearing balances in other banks 101 96 113 113 150Federal funds sold 372 435 285 1,608 1,218Total interest income 65,878 66,053 63,128 66,504 69,003Interest expense:Deposits 20,194 20,303 20,847 24,718 26,398Short-term borrowings 341 410 225 474 550Long-term debt 1,509 1,211 1,177 1,389 1,389Subordinated debt 1,748 1,026 443 444 443Junior subordinated debt 189 188 186 267 260Total interest expense 23,981 23,138 22,878 27,292 29,040Net interest income $ 41,897 $ 42,915 $ 40,250 $ 39,212 $ 39,963Loans, net:Taxable 6.12 % 6.22 % 6.05 % 6.04 % 6.24 %Tax-exempt 4.00 % 4.14 % 4.11 % 4.05 % 4.16 %Total loans, net 5.98 % 6.07 % 5.92 % 5.90 % 6.09 %Investments:Taxable 3.14 % 3.45 % 3.05 % 3.23 % 3.12 %Tax-exempt 2.74 % 2.33 % 2.33 % 2.29 % 2.31 %Total investments 3.08 % 3.29 % 2.95 % 3.10 % 3.02 %Interest-bearing balances with banks 4.24 % 4.19 % 4.09 % 4.93 % 5.55 %Federal funds sold 4.41 % 4.46 % 4.45 % 4.94 % 5.26 %Total interest-earning assets 5.56 % 5.68 % 5.50 % 5.51 % 5.63 %Interest expense:Deposits 2.39 % 2.41 % 2.46 % 2.75 % 2.76 %Short-term borrowings 4.63 % 4.62 % 4.52 % 4.80 % 4.98 %Long-term debt 4.62 % 4.81 % 4.88 % 4.97 % 4.94 %Subordinated debt 8.34 % 7.40 % 5.44 % 5.35 % 5.34 %Junior subordinated debt 9.26 % 9.34 % 9.37 % 13.23 % 12.93 %Total interest-bearing liabilities 2.64 % 2.60 % 2.58 % 2.88 % 2.89 %Net interest spread 2.92 % 3.08 % 2.92 % 2.62 % 2.74 %Net interest margin 3.54 % 3.69 % 3.50 % 3.25 % 3.26 %
Peoples Financial Services Corp.Consolidated Balance Sheets (Unaudited)(In thousands) Sept30 June30 Mar31 Dec31 Sept30Atperiodend 2025 2025 2025 2024 2024Assets:Cash and due from banks $ 62,133 $ 60,173 $ 60,125 $ 47,029 $ 97,090Interest-bearing balances in other banks 9,492 9,646 9,196 8,593 10,286Federal funds sold 108,298 105,920 7,781 80,229 178,093Investment securities:Available for sale 534,521 505,181 503,043 526,329 562,486Held to maturity 73,286 75,137 76,689 78,184 79,861Equity investments carried at fair value 2,473 2,494 2,500 2,430 3,921Total investments 610,280 582,812 582,232 606,943 646,268Loans held for sale 816 547 420 803Loans 4,016,367 3,997,525 3,991,539 3,993,505 4,069,683Less: allowance for credit losses 39,843 40,890 41,054 41,776 39,341Net loans 3,976,524 3,956,635 3,950,485 3,951,729 4,030,342Goodwill 75,986 75,986 75,986 75,986 76,958Premises and equipment, net 77,009 76,896 72,492 73,283 75,877Bank owned life insurance 88,175 87,635 87,953 87,429 87,401Deferred tax assets 30,025 31,647 32,628 35,688 33,078Accrued interest receivable 16,995 15,854 16,436 15,632 17,979Other intangible assets, net 29,239 30,778 32,488 34,197 35,907Other assets 74,664 73,350 71,136 74,919 70,056Total assets $ 5,159,636 $ 5,107,879 $ 4,999,358 $ 5,091,657 $ 5,360,138Liabilities:Deposits:Noninterest-bearing $ 912,044 $ 899,597 $ 901,398 $ 935,516 $ 927,864Interest-bearing 3,377,687 3,387,752 3,415,529 3,472,036 3,710,000Total deposits 4,289,731 4,287,349 4,316,927 4,407,552 4,637,864Short-term borrowings 76,310 76,340 14,840 15,900 37,346Long-term debt 137,029 103,449 88,403 98,637 111,489Subordinated debt 83,111 83,164 33,000 33,000 33,000Junior subordinated debt 8,114 8,088 8,063 8,039 8,015Accrued interest payable 7,976 4,640 5,439 5,503 6,829Other liabilities 48,105 50,753 50,832 54,076 50,544Total liabilities 4,650,376 4,613,783 4,517,504 4,622,707 4,885,087Stockholders' equity:Common stock 20,015 20,015 20,014 19,995 19,993Capital surplus 250,735 250,468 250,488 250,695 250,578Retained earnings 267,686 258,601 247,806 238,955 239,021Accumulated other comprehensive loss (29,176) (34,988) (36,454) (40,695) (34,541)Total stockholders' equity 509,260 494,096 481,854 468,950 475,051Total liabilities and stockholders' equity $ 5,159,636 $ 5,107,879 $ 4,999,358 $ 5,091,657 $ 5,360,138
Peoples Financial Services Corp.Loan and Asset Quality Data (Unaudited)(In thousands) Sept 30 June 30 Mar 31 Dec 31 Sept 30At period end 2025 2025 2025 2024 2024CommercialTaxable $ 597,163 $ 595,042 $ 570,966 $ 556,630 $ 616,369Non-taxable 263,921 278,026 282,031 279,390 273,710Total 861,084 873,068 852,997 836,020 890,079Real estateCommercial real estate 2,278,745 2,252,574 2,275,241 2,294,113 2,309,588Residential 588,520 573,864 560,067 551,383 550,590Total 2,867,265 2,826,438 2,835,308 2,845,496 2,860,178ConsumerIndirect Auto 100,298 104,618 108,819 117,914 130,380Consumer Other 14,212 13,929 14,209 14,955 15,580Total 114,510 118,547 123,028 132,869 145,960Equipment Financing 173,508 179,472 180,206 179,120 173,466Total $ 4,016,367 $ 3,997,525 $ 3,991,539 $ 3,993,505 $ 4,069,683 Sept30 June30 Mar31 Dec31 Sept30Atquarterend 2025 2025 2025 2024 2024Nonperforming assets:Nonaccrual/restructured loans $ 14,386 $ 17,390 $ 23,002 $ 22,499 $ 20,949Accruing loans past due 90 days or more 886 72 655 458 569Foreclosed assets 1,541 27 27 27Total nonperforming assets $ 16,813 $ 17,462 $ 23,684 $ 22,984 $ 21,545 Sept30 June 30 Mar 31 Dec31 Sept 30Three months ended 2025 2025 2025 2024 2024Allowance for credit losses:Beginning balance $ 40,890 $ 41,054 $ 41,776 $ 39,341 $ 23,123Merger-related adjustments – Non PCD Loans 14,328Merger-related adjustments – PCD Loans 1,841Charge-offs 491 1,151 1,233 1,108 534Recoveries 282 1,226 311 174 453(Credit to) provision for credit losses (838) (239) 200 3,369 130Ending balance $ 39,843 $ 40,890 $ 41,054 $ 41,776 $ 39,341
Peoples Financial Services Corp.Deposit and Liquidity Detail (Unaudited)(In thousands) Sept 30 June 30 Mar 31 Dec 31 Sept 30At period end 2025 2025 2025 2024 2024Interest-bearing deposits:Money market accounts $ 1,026,725 $ 971,136 $ 967,661 $ 936,239 $ 1,018,575Interest-bearing demand and NOW accounts 1,186,342 1,200,911 1,177,507 1,238,853 1,229,083Savings accounts 493,957 500,680 502,851 492,180 509,412Time deposits less than $250 497,131 543,257 599,127 620,725 824,791Time deposits $250 or more 173,532 171,768 168,383 184,039 128,139Total interest-bearing deposits 3,377,687 3,387,752 3,415,529 3,472,036 3,710,000Noninterest-bearing deposits 912,044 899,597 901,398 935,516 927,864Total deposits $ 4,289,731 $ 4,287,349 $ 4,316,927 $ 4,407,552 $ 4,637,864
September 30, 2025At period end Amount Percent of Total Number of accounts Average BalanceDeposit Detail:Retail $ 1,756,627 40.9 % 94,579 $ 19Commercial 1,560,214 36.4 18,475 84Municipal 810,678 18.9 2,512 323Brokered 162,212 3.8 14 11,587Total Deposits $ 4,289,731 100.0 % 115,580 $ 37Uninsured $ 1,387,652 32.3 %Insured 2,902,079 67.7 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 September 30, 2025 Total Available Outstanding for Future LiquidityFHLB advances (1) $ 1,666,431 $ 606,906 $ 1,059,525Federal Reserve – Discount Window 388,269 388,269Correspondent bank lines of credit 18,000 18,000Other sources of liquidity:Brokered deposits 773,945 162,212 611,733Unencumbered securities 184,206 184,206Total sources of liquidity $ 3,030,851 $ 769,118 $ 2,261,733
(1) Outstanding balance of FHLB advances includes letters of credit used to collateralize public fund deposits.
Peoples Financial Services Corp.Consolidated Balance Sheets (Unaudited)(In thousands) Sept30 June30 Mar31 Dec31 Sept30Averagequarterlybalances 2025 2025 2025 2024 2024Assets:Loans, net:Taxable $ 3,736,269 $ 3,707,650 $ 3,698,124 $ 3,757,273 $ 3,790,138Tax-exempt 269,757 282,406 280,555 278,429 278,496Total loans, net 4,006,026 3,990,056 3,978,679 4,035,702 4,068,634Investments:Taxable 553,151 540,424 555,910 541,526 611,032Tax-exempt 98,608 86,899 87,072 87,419 89,532Total investments 651,759 627,323 642,982 628,945 700,564Interest-bearing balances with banks 9,441 9,186 11,197 9,116 10,820Federal funds sold 33,443 39,084 25,979 129,517 92,171Total interest-earning assets 4,700,669 4,665,649 4,658,837 4,803,280 4,872,189Other assets 366,809 348,685 349,840 400,179 419,005Total assets $ 5,067,478 $ 5,014,334 $ 5,008,677 $ 5,203,459 $ 5,291,194Liabilities and stockholders' equity:Deposits:Interest-bearing $ 3,353,559 $ 3,373,916 $ 3,437,355 $ 3,573,321 $ 3,607,405Noninterest-bearing 905,385 897,212 875,053 904,274 908,776Total deposits 4,258,944 4,271,128 4,312,408 4,477,595 4,516,181Short-term borrowings 29,208 35,587 20,176 39,319 43,895Long-term debt 129,524 101,066 97,769 111,135 111,804Subordinated debt 83,149 55,622 33,000 33,000 33,000Junior subordinated debt 8,098 8,075 8,050 8,026 8,000Other liabilities 55,530 52,608 58,018 56,445 96,177Total liabilities 4,564,453 4,524,086 4,529,421 4,725,520 4,809,057Stockholders' equity 503,025 490,248 479,256 477,939 482,137Total liabilities and stockholders' equity $ 5,067,478 $ 5,014,334 $ 5,008,677 $ 5,203,459 $ 5,291,194
Peoples Financial Services Corp.Reconciliation of Non-GAAP Financial Measures (Unaudited)(In thousands, except share and per share data) Sept30 June30 Mar31 Dec31 Sept30Threemonthsended 2025 2025 2025 2024 2024Core net income per share:Net income (loss) GAAP $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 16 66 154 4,990 9,653Less: Acquisition related expenses tax adjustment 3 14 34 1,089 1,270Core net income $ 15,259 $ 17,008 $ 15,129 $ 9,988 $ 16,489Average common shares outstanding – diluted 10,086,915 10,082,260 10,043,186 10,051,337 10,044,449Core net income per diluted share $ 1.51 $ 1.69 $ 1.51 $ 0.99 $ 1.64Tangible book value:Total stockholders' equity $ 509,260 $ 494,096 $ 481,854 $ 468,950 $ 475,051Less: Goodwill 75,986 75,986 75,986 76,325 76,958Less: Other intangible assets, net 29,239 30,778 32,488 34,197 35,907Total tangible stockholders' equity $ 404,035 $ 387,332 $ 373,380 $ 358,428 $ 362,186Common shares outstanding 9,994,595 9,994,696 9,995,483 9,990,724 9,994,648Tangible book value per share $ 40.43 $ 38.75 $ 37.35 $ 35.88 $ 36.24Core return on average stockholders' equity:Net income (loss) GAAP $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 16 66 154 4,990 9,653Less: Acquisition related expenses tax adjustment 3 14 34 1,089 1,270Core net income $ 15,259 $ 17,008 $ 15,129 $ 9,988 $ 16,489Average stockholders' equity $ 503,025 $ 490,248 $ 479,256 $ 477,939 $ 482,137Core return on average stockholders' equity 12.03 % 13.92 % 12.80 % 8.31 % 13.61 %Return on average tangible stockholders' equity:Net income (loss) GAAP $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Average stockholders' equity $ 503,025 $ 490,248 $ 479,256 $ 477,939 $ 482,137Less: average intangibles 106,111 106,764 109,386 112,399 113,032Average tangible stockholders' equity $ 396,914 $ 383,484 $ 369,870 $ 365,540 $ 369,105Return on average tangible stockholders' equity 15.24 % 17.73 % 16.46 % 6.62 % (4.67) %Core return on average tangible stockholders' equity:Net income (loss) GAAP $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 16 66 154 4,990 9,653Less: Acquisition related expenses tax adjustment 3 14 34 1,089 1,270Core net income $ 15,259 $ 17,008 $ 15,129 $ 9,988 $ 16,489Average stockholders' equity $ 503,025 $ 490,248 $ 479,256 $ 477,939 $ 482,137Less: average intangibles 106,111 106,764 109,386 112,399 113,032Average tangible stockholders' equity $ 396,914 $ 383,484 $ 369,870 $ 365,540 $ 369,105Core return on average tangible stockholders' equity 15.25 % 17.79 % 16.59 % 10.87 % 17.77 %Core return on average assets:Net income (loss) GAAP $ 15,246 $ 16,956 $ 15,009 $ 6,087 $ (4,337)Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,885Add: Acquisition related expenses 16 66 154 4,990 9,653Less: Acquisition related expenses tax adjustment 3 14 34 1,089 1,270Core net income $ 15,259 $ 17,008 $ 15,129 $ 9,988 $ 16,489Average assets $ 5,067,478 $ 5,014,334 $ 5,008,677 $ 5,203,459 $ 5,291,194Core return on average assets 1.19 % 1.36 % 1.23 % 0.76 % 1.24 %Pre-provision net revenue (PPNR) per share:Income (Loss) before taxes (GAAP) $ 18,844 $ 20,421 $ 18,251 $ 5,815 $ (4,994)Add: ACL provision for FNCB acquired legacy loans 14,328Add: (Credit to) provision for credit losses (838) (239) 200 3,369 130Add: Provision for (credit to) credit losses on unfunded commitments 252 172 (202) 452 (785)PPNR (non-GAAP) $ 18,258 $ 20,354 $ 18,249 $ 9,636 $ 8,679Average common shares outstanding-diluted 10,086,915 10,082,260 10,043,186 10,051,337 10,044,449PPNR per share (non-GAAP) $ 1.81 $ 2.02 $ 1.82 $ 0.96 $ 0.86Core pre-provision net revenue (PPNR) per share:Income (Loss) before taxes (GAAP) $ 18,844 $ 20,421 $ 18,251 $ 5,815 $ (4,994)Add: Acquisition related expenses 16 66 154 4,990 9,653Add: ACL provision for FNCB acquired legacy loans 14,328Add: (Credit to) provision for credit losses (838) (239) 200 3,369 130Add: Provision for (credit to) credit losses on unfunded commitments 252 172 (202) 452 (785)Core PPNR (non-GAAP) $ 18,274 $ 20,420 $ 18,403 $ 14,626 $ 18,332Average common shares outstanding-diluted 10,086,915 10,082,260 10,043,186 10,051,337 10,044,449Core PPNR per share (non-GAAP) $ 1.81 $ 2.03 $ 1.83 $ 1.46 $ 1.83
(1) Current year quarters and fourth quarter 2024 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) Sept30 Sept30Nine months ended 2025 2024Core net income per share:Net income GAAP $ 47,211 $ 2,411Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,307Add: Acquisition related expenses 236 11,210Less: Acquisition related expenses tax adjustment 51 1,023Core net income $ 47,396 $ 25,619Average common shares outstanding – diluted 10,070,947 8,094,036Core net income per diluted share $ 4.71 $ 3.17Core return on average stockholders' equity:Net income GAAP $ 47,211 $ 2,411Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,307Add: Acquisition related expenses 236 11,210Less: Acquisition related expenses tax adjustment 51 1,023Core net income $ 47,396 $ 25,619Average stockholders' equity 490,934 388,206Core return on average stockholders' equity 12.91 % 8.82 %Return on average tangible stockholders' equity:Net income GAAP $ 47,211 $ 2,411Average stockholders' equity 490,934 388,206Less: average intangibles 107,736 79,924Average tangible stockholders' equity $ 383,198 $ 308,282Return on average tangible stockholders' equity 16.47 % 1.04 %Core return on average tangible stockholders' equity:Net income GAAP $ 47,211 $ 2,411Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,307Add: Acquisition related expenses 236 11,210Less: Acquisition related expenses tax adjustment 51 1,023Core net income $ 47,396 $ 25,619Average stockholders' equity 490,934 388,206Less: average intangibles 107,736 79,924Average tangible stockholders' equity $ 383,198 $ 308,282Core return on average tangible stockholders' equity 16.54 % 11.10 %Core return on average assets:Net income GAAP $ 47,211 $ 2,411Adjustments:Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,307Add: Acquisition related expenses 236 11,210Less: Acquisition related expenses tax adjustment 51 1,023Core net income $ 47,396 $ 25,619Average assets 5,032,472 4,191,695Core return on average assets 1.26 % 0.82 %Pre-provision net revenue (PPNR) per share:Income before taxes (GAAP) $ 57,516 $ 2,653Add: ACL provision for FNCB acquired legacy loans 14,328Less: ACL provision for FNCB acquired legacy loans tax adjustment 1,307Add: (Credit to) provision for credit losses (877) 1,434Add: (Credit to) provision for credit losses on unfunded commitments 222 (495)PPNR (non-GAAP) $ 56,861 $ 17,603Average common shares outstanding-diluted 10,070,947 8,094,036PPNR per share (non-GAAP) $ 5.65 $ 2.17Core pre-provision net revenue (PPNR) per share:Income before taxes (GAAP) $ 57,516 $ 2,653Add: ACL provision for FNCB acquired legacy loans 14,328Add: Acquisition related expenses 236 11,210Add: (Credit to) provision for credit losses (877) 1,434Add: (Credit to) provision for credit losses on unfunded commitments 222 (495)Core PPNR (non-GAAP) $ 57,097 $ 29,130Average common shares outstanding-diluted 10,070,947 8,094,036Core PPNR per share (non-GAAP) $ 5.67 $ 3.60
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 of FTE net interest income for the three and nine months ended September 30, 2025 and 2024:
Three months ended September 30 2025 2024Interest income (GAAP) $ 65,164 $ 68,284Adjustment to FTE 714 720Interest income adjusted to FTE (non-GAAP) 65,878 69,004Interest expense 23,981 29,040Net interest income adjusted to FTE (non-GAAP) $ 41,897 $ 39,964Nine months ended September 30 2025 2024Interest income (GAAP) $ 192,925 $ 145,657Adjustment to FTE 2,134 1,666Interest income adjusted to FTE (non-GAAP) 195,059 147,323Interest expense 69,997 68,179Net interest income adjusted to FTE (non-GAAP) $ 125,062 $ 79,144
The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three and nine months ended September 30, 2025 and 2024:
Three months ended September 30 2025 2024Efficiency ratio (non-GAAP):Noninterest expense (GAAP) $ 28,678 $ 35,499Less: Amortization of intangible assets expense 1,515 1,665Less: Acquisition related expenses 16 9,653Noninterest expense (non-GAAP) 27,147 24,181Net interest income (GAAP) 41,183 39,244Plus: Taxable equivalent adjustment 714 720Noninterest income (GAAP) 5,501 5,719Less: Net (losses) gains on equity securities (21) 175Less: (Losses) gains on sale of fixed assets (615) (3)Net interest income (FTE) plus noninterest income (non-GAAP) $ 48,034 $ 45,511Efficiency ratio (non-GAAP) 56.52 % 53.13 %Nine months ended September 30 2025 2024Efficiency ratio (non-GAAP):Noninterest expense (GAAP) $ 84,293 $ 71,728Less: Amortization of intangible assets expense 4,882 1,665Less: Acquisition related expenses 236 11,210Noninterest expense (non-GAAP) 79,175 58,853Net interest income (GAAP) 122,928 77,478Plus: Taxable equivalent adjustment 2,134 1,666Noninterest income (GAAP) 18,004 12,665Less: Net gains (losses) on equity securities 43 155Less: Gains on sale of fixed assets 65 1Net interest income (FTE) plus noninterest income (non-GAAP) $ 142,958 $ 91,653Efficiency ratio (non-GAAP) 55.38 % 64.21 %
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