FT Markets Data
Peoples Financial Services Corp

PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Third Quarter and Year to Date 2025 Earnings

MOOSIC, Pa. , Oct. 30, 2025 /PRNewswire/ -- 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.  

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 ratio a 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 December 31, 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 by applicable 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 Data

Peoples Financial Services Corp.

Five Quarter Trend (Unaudited)

(In thousands, except share and per share data)






Sept 30


June 30


Mar 31


Dec 31


Sept 30




2025


2025


2025


2024


2024


Key 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


$

1.64


Core net income (PPNR) (1)


$

1.81


$

2.03


$

1.83


$

1.46


$

1.83


Cash dividends declared


$

0.62


$

0.62


$

0.62


$

0.62


$

0.62


Book value


$

50.95


$

49.44


$

48.21


$

46.94


$

47.53


Tangible book value (1)


$

40.43


$

38.75


$

37.35


$

35.88


$

36.24


Market value:

















High


$

53.69


$

51.21


$

53.70


$

58.76


$

50.49


Low


$

46.90


$

40.67


$

44.47


$

44.73


$

41.44


Closing


$

48.61


$

49.37


$

44.47


$

51.18


$

46.88


Market capitalization


$

485,837


$

493,438


$

444,499


$

511,325


$

468,549


Common shares outstanding



9,994,595



9,994,696



9,995,483



9,990,724



9,994,648


Selected 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)




Sept 30


Sept 30

Nine months ended


2025


2024

Interest income:







Interest and fees on loans:







Taxable


$

170,292


$

127,859

Tax-exempt



6,698



5,116

Interest and dividends on investment securities:







Taxable



13,073



8,561

Tax-exempt



1,332



1,153

Dividends



128



59

Interest on interest-bearing deposits in other banks



310



385

Interest on federal funds sold



1,092



2,524

Total interest income



192,925



145,657

Interest expense:







Interest on deposits



61,344



63,216

Interest on short-term borrowings



976



1,444

Interest on long-term debt



3,897



1,929

Interest on subordinated debt



3,217



1,330

Interest on junior subordinated debt



563



260

Total interest expense



69,997



68,179

Net interest income



122,928



77,478

(Credit to) provision for credit losses



(877)



15,762

Net interest income after (credit to) provision for credit losses



123,805



61,716

Noninterest income:







Service charges, fees, commissions and other



10,454



7,304

Merchant services income



1,136



598

Commissions and fees on fiduciary activities



1,707



1,717

Wealth management income



2,219



1,486

Mortgage banking income



387



263

Increase in cash surrender value of life insurance



1,604



1,116

Interest rate swap income



389



25

Net gains on equity investments



43



155

Net gains on sale of fixed assets



65



1

Total noninterest income



18,004



12,665

Noninterest expense:







Salaries and employee benefits expense



41,370



30,459

Net occupancy and equipment expense



20,115



15,745

Acquisition related expenses



236



11,210

Amortization of intangible assets



4,882



1,665

FDIC insurance and assessments



2,605



1,907

Other expenses



15,085



10,742

Total noninterest expense



84,293



71,728

Income before income taxes



57,516



2,653

Provision for income tax expense



10,305



242

Net income


$

47,211


$

2,411

Other comprehensive income:







Unrealized gains on investment securities available for sale


$

14,846


$

12,744

Reclassification 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



2,748

Other comprehensive income, net of income tax expense



11,519



9,810

Comprehensive income


$

58,730


$

12,221

Share and per share amounts:







Net income - basic


$

4.72


$

0.30

Net income - diluted



4.69



0.30

Cash dividends declared


$

1.86


$

1.44

Average common shares outstanding - basic



9,994,175



8,039,734

Average 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)




Sept 30


June 30


Mar 31


Dec 31


Sept 30

Three months ended


2025


2025


2025


2024


2024

Interest income:
















Interest and fees on loans:
















Taxable


$

57,621


$

57,459


$

55,212


$

57,048


$

59,411

Tax-exempt



2,151



2,302



2,245



2,238



2,299

Interest and dividends on investment securities:
















Taxable



4,335



4,604



4,134



4,359



4,739

Tax-exempt



537



399



396



397



411

Dividends



47



40



41



40



55

Interest on interest-bearing deposits in other banks



101



96



113



113



150

Interest on federal funds sold



372



435



285



1,608



1,218

Total interest income



65,164



65,335



62,426



65,803



68,283

Interest expense:
















Interest on deposits



20,194



20,303



20,847



24,718



26,398

Interest on short-term borrowings



341



410



225



474



550

Interest on long-term debt



1,509



1,211



1,177



1,389



1,389

Interest on subordinated debt



1,748



1,026



443



444



443

Interest on junior subordinated debt



189



188



186



267



260

Total interest expense



23,981



23,138



22,878



27,292



29,040

Net interest income



41,183



42,197



39,548



38,511



39,243

(Credit to) provision for credit losses



(838)



(239)



200



3,369



14,458

Net interest income after (credit to) provision for credit losses



42,021



42,436



39,348



35,142



24,785

Noninterest income:
















Service charges, fees, commissions and other



3,386



3,664



3,404



3,368



3,384

Merchant services income



321



584



231



298



223

Commissions and fees on fiduciary activities



607



563



537



553



649

Wealth management income



950



619



650



633



708

Mortgage banking income



148



125



114



126



84

Increase in cash surrender value of life insurance



543



535



526



456



551

Interest rate swap income (loss)



182



164



43



260



(53)

Net (losses) gains on equity investments



(21)



(7)



71



(23)



175

Net gains on sale of investment securities available for sale















1

Net (losses) gains on sale of fixed assets



(615)






680



(165)



(3)

Total noninterest income



5,501



6,247



6,256



5,506



5,719

Noninterest expense:
















Salaries and employee benefits expense



14,128



13,761



13,481



15,287



13,170

Net occupancy and equipment expense



7,221



6,284



6,610



6,386



6,433

Acquisition related expenses



16



66



154



4,990



9,653

Amortization of intangible assets



1,515



1,684



1,683



1,702



1,665

FDIC insurance and assessments



607



976



1,022



1,251



809

Other expenses



5,191



5,491



4,403



5,217



3,768

Total noninterest expense



28,678



28,262



27,353



34,833



35,498

Income (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)


$

15,167

Reclassification adjustment for gains on available for sale securities included in net income















(1)

Change in benefit plan liabilities












1,518




Change 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)



3,008

Other comprehensive income (loss), net of income tax expense  (benefit)



5,812



1,466



4,241



(6,154)



10,734

Comprehensive income (loss)


$

21,058


$

18,422


$

19,250


$

(67)


$

6,397

Share 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


$

0.62

Average common shares outstanding - basic



9,994,629



9,994,955



9,992,922



9,994,605



9,987,627

Average 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


Interest Income/


Yield/



Average


Interest Income/


Yield/




Balance  


Expense


Rate  



Balance  


Expense


Rate  


Assets:



















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


4.16


Total loans



4,006,026



60,343


5.98




4,068,634



62,321


6.09


Investments:



















Taxable



553,151



4,382


3.14




611,032



4,794


3.12


Tax-exempt



98,608



680


2.74




89,532



520


2.31


Total investments



651,759



5,062


3.08




700,564



5,314


3.02


Interest-bearing deposits



9,441



101


4.24




10,820



150


5.55


Federal funds sold



33,443



372


4.41




92,171



1,218


5.26


Total earning assets



4,700,669



65,878


5.56

%



4,872,189



69,003


5.63

%

Less: allowance for credit losses



41,576









37,535







Other assets



408,385









456,540







Total assets


$

5,067,478


$

65,878





$

5,291,194


$

69,003




Liabilities 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


1.94


Savings accounts



496,256



389


0.31




518,038



392


0.30


Time deposits less than $100



341,825



2,923


3.39




687,511



6,279


3.63


Time deposits $100 or more



347,723



3,069


3.50




275,786



4,608


6.65


Total interest-bearing deposits



3,353,559



20,194


2.39




3,802,405



26,398


2.76


Short-term borrowings



29,208



341


4.63




43,895



550


4.98


Long-term debt



129,524



1,509


4.62




111,804



1,389


4.94


Subordinated debt



83,149



1,748


8.34




33,000



443


5.34


Junior subordinated debt



8,098



189


9.26




8,000



260


12.93


Total borrowings



249,979



3,787


6.01




196,699



2,642


5.34


Total interest-bearing liabilities



3,603,538



23,981


2.64

%



3,999,104



29,040


2.89

%

Noninterest-bearing deposits



905,385









713,776







Other liabilities



55,530









96,177







Stockholders' equity



503,025









482,137







Total liabilities and stockholders' equity


$

5,067,478








$

5,291,194







Net interest income/spread





$

41,897


2.92

%





$

39,963


2.74

%

Net interest margin








3.54

%








3.26

%

Tax-equivalent adjustments:



















Loans





$

571








$

611




Investments






143









109




Total 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


Interest Income/


Yield/


Average


Interest Income/


Yield/




Balance  


Expense


Rate  


Balance  


Expense


Rate  


Assets:


















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


3.57


Total loans



3,991,686



178,770


5.99



3,265,281



134,335


5.50


Investments:


















Taxable



549,818



13,201


3.21



501,100



8,620


2.30


Tax-exempt



90,902



1,686


2.48



87,612



1,459


2.22


Total investments



640,720



14,887


3.11



588,712



10,079


2.29


Interest-bearing deposits



9,935



310


4.17



9,541



385


5.39


Federal funds sold



32,863



1,092


4.44



61,635



2,524


5.47


Total earning assets



4,675,204



195,059


5.58

%


3,925,169



147,323


5.01

%

Less: allowance for credit losses



41,830








27,660







Other assets



399,098








294,186







Total assets


$

5,032,472


$

195,059




$

4,191,695


$

147,323




Liabilities 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


2.20


Savings accounts



498,998



1,127


0.30



450,161



947


0.28


Time deposits less than $100



389,807



11,142


3.82



475,194



19,420


5.46


Time deposits $100 or more



353,753



9,403


3.55



271,765



4,608


2.26


Total interest-bearing deposits



3,387,970



61,344


2.42



2,967,233



63,216


2.85


Short-term borrowings



28,357



976


4.60



36,349



1,446


5.31


Long-term debt



109,569



3,897


4.76



54,147



1,928


4.76


Subordinated debt



57,440



3,217


7.49



33,000



1,330


5.38


Junior subordinated debt



8,075



563


9.32



2,692



260


12.90


Total borrowings



203,441



8,653


5.69



126,188



4,964


5.25


Total interest-bearing liabilities



3,591,411



69,997


2.61

%


3,093,421



68,180


2.94

%

Noninterest-bearing deposits



892,661








650,446







Other liabilities



57,466








59,622







Stockholders' equity



490,934








388,206







Total liabilities and stockholders' equity


$

5,032,472







$

4,191,695







Net interest income/spread





$

125,062


2.97

%




$

79,143


2.07

%

Net interest margin








3.58

%







2.69

%

Tax-equivalent adjustments:


















Loans





$

1,780







$

1,360




Investments






354








306




Total 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)























Sept 30


June 30


Mar 31


Dec 31


Sept 30


Three months ended


2025


2025


2025


2024


2024


Net interest income:

















Interest income:

















Loans, net:

















Taxable


$

57,621


$

57,459


$

55,212


$

57,048


$

59,411


Tax-exempt



2,722



2,914



2,842



2,834



2,910


Total loans, net



60,343



60,373



58,054



59,882



62,321


Investments:

















Taxable



4,382



4,644



4,175



4,399



4,794


Tax-exempt



680



505



501



502



520


Total investments



5,062



5,149



4,676



4,901



5,314


Interest on interest-bearing balances in other banks



101



96



113



113



150


Federal funds sold



372



435



285



1,608



1,218


Total interest income



65,878



66,053



63,128



66,504



69,003


Interest expense:

















Deposits



20,194



20,303



20,847



24,718



26,398


Short-term borrowings



341



410



225



474



550


Long-term debt



1,509



1,211



1,177



1,389



1,389


Subordinated debt



1,748



1,026



443



444



443


Junior subordinated debt



189



188



186



267



260


Total interest expense



23,981



23,138



22,878



27,292



29,040


Net interest income


$

41,897


$

42,915


$

40,250


$

39,212


$

39,963


Loans, 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)





















Sept 30


June 30


Mar 31


Dec 31


Sept 30


At period end


2025


2025


2025


2024


2024


Assets:

















Cash and due from banks


$

62,133


$

60,173


$

60,125


$

47,029


$

97,090


Interest-bearing balances in other banks



9,492



9,646



9,196



8,593



10,286


Federal funds sold



108,298



105,920



7,781



80,229



178,093


Investment securities:

















Available for sale



534,521



505,181



503,043



526,329



562,486


Held to maturity



73,286



75,137



76,689



78,184



79,861


Equity investments carried at fair value



2,473



2,494



2,500



2,430



3,921


Total investments



610,280



582,812



582,232



606,943



646,268


Loans held for sale



816



547



420






803


Loans



4,016,367



3,997,525



3,991,539



3,993,505



4,069,683


Less: allowance for credit losses



39,843



40,890



41,054



41,776



39,341


Net loans



3,976,524



3,956,635



3,950,485



3,951,729



4,030,342


Goodwill



75,986



75,986



75,986



75,986



76,958


Premises and equipment, net



77,009



76,896



72,492



73,283



75,877


Bank owned life insurance



88,175



87,635



87,953



87,429



87,401


Deferred tax assets



30,025



31,647



32,628



35,688



33,078


Accrued interest receivable



16,995



15,854



16,436



15,632



17,979


Other intangible assets, net



29,239



30,778



32,488



34,197



35,907


Other assets



74,664



73,350



71,136



74,919



70,056


Total assets


$

5,159,636


$

5,107,879


$

4,999,358


$

5,091,657


$

5,360,138


Liabilities:

















Deposits:

















Noninterest-bearing


$

912,044


$

899,597


$

901,398


$

935,516


$

927,864


Interest-bearing



3,377,687



3,387,752



3,415,529



3,472,036



3,710,000


Total deposits



4,289,731



4,287,349



4,316,927



4,407,552



4,637,864


Short-term borrowings



76,310



76,340



14,840



15,900



37,346


Long-term debt



137,029



103,449



88,403



98,637



111,489


Subordinated debt



83,111



83,164



33,000



33,000



33,000


Junior subordinated debt



8,114



8,088



8,063



8,039



8,015


Accrued interest payable



7,976



4,640



5,439



5,503



6,829


Other liabilities



48,105



50,753



50,832



54,076



50,544


Total liabilities



4,650,376



4,613,783



4,517,504



4,622,707



4,885,087


Stockholders' equity:

















Common stock



20,015



20,015



20,014



19,995



19,993


Capital surplus



250,735



250,468



250,488



250,695



250,578


Retained earnings



267,686



258,601



247,806



238,955



239,021


Accumulated other comprehensive loss



(29,176)



(34,988)



(36,454)



(40,695)



(34,541)


Total stockholders' equity



509,260



494,096



481,854



468,950



475,051


Total 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 30

At period end


2025


2025


2025


2024


2024

Commercial
















Taxable


$

597,163


$

595,042


$

570,966


$

556,630


$

616,369

Non-taxable



263,921



278,026



282,031



279,390



273,710

Total



861,084



873,068



852,997



836,020



890,079

Real estate
















Commercial real estate



2,278,745



2,252,574



2,275,241



2,294,113



2,309,588

Residential



588,520



573,864



560,067



551,383



550,590

Total



2,867,265



2,826,438



2,835,308



2,845,496



2,860,178

Consumer
















Indirect Auto



100,298



104,618



108,819



117,914



130,380

Consumer Other



14,212



13,929



14,209



14,955



15,580

Total



114,510



118,547



123,028



132,869



145,960

Equipment Financing



173,508



179,472



180,206



179,120



173,466

Total


$

4,016,367


$

3,997,525


$

3,991,539


$

3,993,505


$

4,069,683




















Sept 30


June 30


Mar 31


Dec 31


Sept 30

At quarter end


2025


2025


2025


2024


2024

Nonperforming assets:

















Nonaccrual/restructured loans


$

14,386


$

17,390


$

23,002


$

22,499


$

20,949

Accruing loans past due 90 days or more



886



72



655



458



569

Foreclosed assets



1,541






27



27



27

Total nonperforming assets


$

16,813


$

17,462


$

23,684


$

22,984


$

21,545




















Sept 30


June 30


Mar 31


Dec 31


Sept 30

Three months ended


2025


2025


2025


2024


2024

Allowance for credit losses:

















Beginning balance


$

40,890


$

41,054


$

41,776


$

39,341


$

23,123

Merger-related adjustments - Non PCD Loans















14,328

Merger-related adjustments - PCD Loans















1,841

Charge-offs



491



1,151



1,233



1,108



534

Recoveries



282



1,226



311



174



453

(Credit to) provision for credit losses



(838)



(239)



200



3,369



130

Ending 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 30

At period end


2025


2025


2025


2024


2024

Interest-bearing deposits:
















Money market accounts


$

1,026,725


$

971,136


$

967,661


$

936,239


$

1,018,575

Interest-bearing demand and NOW accounts



1,186,342



1,200,911



1,177,507



1,238,853



1,229,083

Savings accounts



493,957



500,680



502,851



492,180



509,412

Time deposits less than $250



497,131



543,257



599,127



620,725



824,791

Time deposits $250 or more



173,532



171,768



168,383



184,039



128,139

Total interest-bearing deposits



3,377,687



3,387,752



3,415,529



3,472,036



3,710,000

Noninterest-bearing deposits



912,044



899,597



901,398



935,516



927,864

Total deposits


$

4,289,731


$

4,287,349


$

4,316,927


$

4,407,552


$

4,637,864

 

September 30, 2025

At period end



Amount


Percent of Total



Number of accounts


Average Balance

Deposit Detail:











Retail


$

1,756,627


40.9

%


94,579

$

19

Commercial



1,560,214


36.4



18,475


84

Municipal



810,678


18.9



2,512


323

Brokered



162,212


3.8



14


11,587

Total Deposits


$

4,289,731


100.0

%


115,580

$

37












Uninsured


$

1,387,652


32.3

%





Insured



2,902,079


67.7




















December 31, 2024

At period end



Amount


Percent of Total



Number of accounts


Average Balance

Deposit Detail:











Retail


$

1,779,729


40.4

%


98,583

$

18

Commercial



1,538,757


34.9



18,675


82

Municipal



832,665


18.9



2,427


343

Brokered



256,401


5.8



28


9,157

Total Deposits


$

4,407,552


100.0

%


119,713

$

37












Uninsured


$

1,381,492


31.3

%





Insured



3,026,060


68.7






 




Total Available

At September 30, 2025



Total Available



Outstanding



for Future Liquidity

FHLB advances (1)


$

1,666,431


$

606,906


$

1,059,525

Federal Reserve - Discount Window



388,269






388,269

Correspondent bank lines of credit



18,000






18,000

Other sources of liquidity:










Brokered deposits



773,945



162,212



611,733

Unencumbered securities



184,206






184,206

Total 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)



















Sept 30


June 30


Mar 31


Dec 31


Sept 30

Average quarterly balances


2025


2025


2025


2024


2024

Assets:
















Loans, net:
















Taxable


$

3,736,269


$

3,707,650


$

3,698,124


$

3,757,273


$

3,790,138

Tax-exempt



269,757



282,406



280,555



278,429



278,496

Total loans, net



4,006,026



3,990,056



3,978,679



4,035,702



4,068,634

Investments:
















Taxable



553,151



540,424



555,910



541,526



611,032

Tax-exempt



98,608



86,899



87,072



87,419



89,532

Total investments



651,759



627,323



642,982



628,945



700,564

Interest-bearing balances with banks



9,441



9,186



11,197



9,116



10,820

Federal funds sold



33,443



39,084



25,979



129,517



92,171

Total interest-earning assets



4,700,669



4,665,649



4,658,837



4,803,280



4,872,189

Other assets



366,809



348,685



349,840



400,179



419,005

Total assets


$

5,067,478


$

5,014,334


$

5,008,677


$

5,203,459


$

5,291,194

Liabilities and stockholders' equity:
















Deposits:
















Interest-bearing


$

3,353,559


$

3,373,916


$

3,437,355


$

3,573,321


$

3,607,405

Noninterest-bearing



905,385



897,212



875,053



904,274



908,776

Total deposits



4,258,944



4,271,128



4,312,408



4,477,595



4,516,181

Short-term borrowings



29,208



35,587



20,176



39,319



43,895

Long-term debt



129,524



101,066



97,769



111,135



111,804

Subordinated debt



83,149



55,622



33,000



33,000



33,000

Junior subordinated debt



8,098



8,075



8,050



8,026



8,000

Other liabilities



55,530



52,608



58,018



56,445



96,177

Total liabilities



4,564,453



4,524,086



4,529,421



4,725,520



4,809,057

Stockholders' equity



503,025



490,248



479,256



477,939



482,137

Total 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)





















Sept 30


June 30


Mar 31


Dec 31


Sept 30


Three months ended


2025


2025


2025


2024


2024


Core 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















14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment















1,885


Add: Acquisition related expenses



16



66



154



4,990



9,653


Less: Acquisition related expenses tax adjustment



3



14



34



1,089



1,270


Core net income


$

15,259


$

17,008


$

15,129


$

9,988


$

16,489


Average common shares outstanding - diluted



10,086,915



10,082,260



10,043,186



10,051,337



10,044,449


Core net income per diluted share


$

1.51


$

1.69


$

1.51


$

0.99


$

1.64



















Tangible book value:

















Total stockholders' equity


$

509,260


$

494,096


$

481,854


$

468,950


$

475,051


Less: Goodwill



75,986



75,986



75,986



76,325



76,958


Less: Other intangible assets, net



29,239



30,778



32,488



34,197



35,907


Total tangible stockholders' equity


$

404,035


$

387,332


$

373,380


$

358,428


$

362,186


Common shares outstanding



9,994,595



9,994,696



9,995,483



9,990,724



9,994,648


Tangible book value per share


$

40.43


$

38.75


$

37.35


$

35.88


$

36.24



















Core 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















14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment















1,885


Add: Acquisition related expenses



16



66



154



4,990



9,653


Less: Acquisition related expenses tax adjustment



3



14



34



1,089



1,270


Core net income


$

15,259


$

17,008


$

15,129


$

9,988


$

16,489


Average stockholders' equity


$

503,025


$

490,248


$

479,256


$

477,939


$

482,137


Core 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


$

482,137


Less: average intangibles



106,111



106,764



109,386



112,399



113,032


Average tangible stockholders' equity


$

396,914


$

383,484


$

369,870


$

365,540


$

369,105


Return 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















14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment















1,885


Add: Acquisition related expenses



16



66



154



4,990



9,653


Less: Acquisition related expenses tax adjustment



3



14



34



1,089



1,270


Core net income


$

15,259


$

17,008


$

15,129


$

9,988


$

16,489


Average stockholders' equity


$

503,025


$

490,248


$

479,256


$

477,939


$

482,137


Less: average intangibles



106,111



106,764



109,386



112,399



113,032


Average tangible stockholders' equity


$

396,914


$

383,484


$

369,870


$

365,540


$

369,105


Core 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















14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment















1,885


Add: Acquisition related expenses



16



66



154



4,990



9,653


Less: Acquisition related expenses tax adjustment



3



14



34



1,089



1,270


Core net income


$

15,259


$

17,008


$

15,129


$

9,988


$

16,489


Average assets


$

5,067,478


$

5,014,334


$

5,008,677


$

5,203,459


$

5,291,194


Core 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















14,328


Add: (Credit to) provision for credit losses



(838)



(239)



200



3,369



130


Add: 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


$

8,679


Average common shares outstanding-diluted



10,086,915



10,082,260



10,043,186



10,051,337



10,044,449


PPNR per share (non-GAAP)


$

1.81


$

2.02


$

1.82


$

0.96


$

0.86



















Core 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



9,653


Add: ACL provision for FNCB acquired legacy loans















14,328


Add: (Credit to) provision for credit losses



(838)



(239)



200



3,369



130


Add: 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


$

18,332


Average common shares outstanding-diluted



10,086,915



10,082,260



10,043,186



10,051,337



10,044,449


Core 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)












Sept 30


Sept 30


Nine months ended


2025


2024


Core net income per share:








Net income GAAP


$

47,211


$

2,411


Adjustments:








Add: ACL provision for FNCB acquired legacy loans






14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment






1,307


Add: Acquisition related expenses



236



11,210


Less: Acquisition related expenses tax adjustment



51



1,023


Core net income


$

47,396


$

25,619


Average common shares outstanding - diluted



10,070,947



8,094,036


Core net income per diluted share


$

4.71


$

3.17










Core return on average stockholders' equity:








Net income GAAP


$

47,211


$

2,411


Adjustments:








Add: ACL provision for FNCB acquired legacy loans






14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment






1,307


Add: Acquisition related expenses



236



11,210


Less: Acquisition related expenses tax adjustment



51



1,023


Core net income


$

47,396


$

25,619


Average stockholders' equity



490,934



388,206


Core return on average stockholders' equity



12.91

%


8.82

%









Return on average tangible stockholders' equity:








Net income GAAP


$

47,211


$

2,411


Average stockholders' equity



490,934



388,206


Less: average intangibles



107,736



79,924


Average tangible stockholders' equity


$

383,198


$

308,282


Return on average tangible stockholders' equity



16.47

%


1.04

%









Core return on average tangible stockholders' equity:








Net income GAAP


$

47,211


$

2,411


Adjustments:








Add: ACL provision for FNCB acquired legacy loans






14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment






1,307


Add: Acquisition related expenses



236



11,210


Less: Acquisition related expenses tax adjustment



51



1,023


Core net income


$

47,396


$

25,619


Average stockholders' equity



490,934



388,206


Less: average intangibles



107,736



79,924


Average tangible stockholders' equity


$

383,198


$

308,282


Core return on average tangible stockholders' equity



16.54

%


11.10

%









Core return on average assets:








Net income GAAP


$

47,211


$

2,411


Adjustments:








Add: ACL provision for FNCB acquired legacy loans






14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment






1,307


Add: Acquisition related expenses



236



11,210


Less: Acquisition related expenses tax adjustment



51



1,023


Core net income


$

47,396


$

25,619


Average assets



5,032,472



4,191,695


Core return on average assets



1.26

%


0.82

%









Pre-provision net revenue (PPNR) per share:








Income before taxes (GAAP)


$

57,516


$

2,653


Add: ACL provision for FNCB acquired legacy loans






14,328


Less: ACL provision for FNCB acquired legacy loans tax adjustment






1,307


Add: (Credit to) provision for credit losses



(877)



1,434


Add: (Credit to) provision for credit losses on unfunded commitments



222



(495)


PPNR (non-GAAP)


$

56,861


$

17,603


Average common shares outstanding-diluted



10,070,947



8,094,036


PPNR per share (non-GAAP)


$

5.65


$

2.17










Core pre-provision net revenue (PPNR) per share:








Income before taxes (GAAP)


$

57,516


$

2,653


Add: ACL provision for FNCB acquired legacy loans






14,328


Add: Acquisition related expenses



236



11,210


Add: (Credit to) provision for credit losses



(877)



1,434


Add: (Credit to) provision for credit losses on unfunded commitments



222



(495)


Core PPNR (non-GAAP)


$

57,097


$

29,130


Average common shares outstanding-diluted



10,070,947



8,094,036


Core 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


2024

Interest income (GAAP)


$

65,164


$

68,284

Adjustment to FTE



714



720

Interest income adjusted to FTE (non-GAAP)



65,878



69,004

Interest expense



23,981



29,040

Net interest income adjusted to FTE (non-GAAP)


$

41,897


$

39,964








Nine months ended September 30


2025


2024

Interest income (GAAP)


$

192,925


$

145,657

Adjustment to FTE



2,134



1,666

Interest income adjusted to FTE (non-GAAP)



195,059



147,323

Interest expense



69,997



68,179

Net 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


2024


Efficiency ratio (non-GAAP):








Noninterest expense (GAAP)


$

28,678


$

35,499


Less: Amortization of intangible assets expense



1,515



1,665


Less: Acquisition related expenses



16



9,653


Noninterest expense (non-GAAP)



27,147



24,181










Net interest income (GAAP)



41,183



39,244


Plus: Taxable equivalent adjustment



714



720


Noninterest income (GAAP)



5,501



5,719


Less: Net (losses) gains on equity securities



(21)



175


Less: (Losses) gains on sale of fixed assets



(615)



(3)


Net interest income (FTE) plus noninterest income (non-GAAP)


$

48,034


$

45,511


Efficiency ratio (non-GAAP)



56.52

%


53.13

%









Nine months ended September 30


2025


2024


Efficiency ratio (non-GAAP):








Noninterest expense (GAAP)


$

84,293


$

71,728


Less: Amortization of intangible assets expense



4,882



1,665


Less: Acquisition related expenses



236



11,210


Noninterest expense  (non-GAAP)



79,175



58,853










Net interest income (GAAP)



122,928



77,478


Plus: Taxable equivalent adjustment



2,134



1,666


Noninterest income (GAAP)



18,004



12,665


Less: Net gains (losses) on equity securities



43



155


Less: Gains on sale of fixed assets



65



1


Net interest income (FTE) plus noninterest income (non-GAAP)


$

142,958


$

91,653


Efficiency ratio (non-GAAP)



55.38

%


64.21

%

 

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SOURCE Peoples Financial Services Corp.