Peoples Financial Services Corp. Reports Unaudited First Quarter 2025 Earnings

Rhea-AI Summary

Peoples Financial Services Corp. (NASDAQ: PFIS) reported strong Q1 2025 financial results with net income of $15.0 million ($1.49 per diluted share), compared to $6.1 million ($0.61 per diluted share) in Q4 2024. The company saw significant improvements in key metrics, with Return on Average Assets at 1.22% and Return on Average Equity at 12.70%. The performance boost was primarily driven by higher net interest income, lower provision for credit losses, and reduced noninterest expenses. The results reflect the successful integration of FNCB Bancorp merger (completed July 2024), with merger-related expenses decreasing to $0.2 million from $5.0 million in Q4 2024. Notable achievements include a 50.6% increase in quarterly dividend to $0.6175 per share and improved efficiency ratio of 55.77%.

Positive

• Net income increased significantly to $15.0 million from $6.1 million in Q4 2024
• Return on Average Equity improved to 12.70% from 5.07% in Q4 2024
• Quarterly dividend increased by 50.6% compared to March 2024
• Efficiency ratio improved to 55.77% from 63.03% in Q4 2024
• Merger-related expenses decreased substantially to $0.2M from $5.0M in Q4 2024
• Book value per share increased to $48.21 from $46.94 in Q4 2024

Negative

• Total loans declined by $2.0 million during Q1 2025
• Total deposits decreased by $90.6 million due to seasonal outflows
• Noninterest-bearing deposits decreased by $34.1 million
• Available for sale securities show unrealized losses of $43.4 million

Insights

Financial Analyst

Peoples Financial Services reported stellar Q1 2025 earnings with net income soaring 146% to $15M, driven by successful merger integration and efficient operations.

Peoples Financial Services Corp. has delivered exceptional first quarter results, with net income surging to $15.0 million ($1.49 per diluted share) from $6.1 million ($0.61 per diluted share) in Q4 2024 - a remarkable 146% increase. Looking at core performance (excluding acquisition expenses), earnings improved to $15.1 million ($1.51 per share), up 51% from the prior quarter's $10.0 million.

Profitability metrics show dramatic improvement across all key indicators. Return on average assets climbed to 1.22% (from 0.47%), while return on average equity jumped to 12.70% (from 5.07%). The efficiency ratio improved substantially to 55.77% from 63.03%, demonstrating enhanced operational effectiveness following merger integration activities.

The quarter's performance benefited from several notable factors: a significantly reduced provision for credit losses ($0.2 million versus $3.4 million previously), a $0.2 million credit to reserves for unfunded commitments, and a $680 thousand gain on the sale of their former headquarters. These elements contributed approximately $4.1 million pre-tax to quarterly results.

Balance sheet metrics remain solid with total assets at $5.0 billion, loans at $4.0 billion, and deposits at $4.3 billion. Book value per share increased to $48.21 from $46.94, while tangible book value per share improved to $37.35 from $35.88 in the previous quarter, showing gradual recovery from merger-related dilution.

Banking Industry Specialist

PFIS demonstrates excellent margin expansion and successful FNCB merger integration, while strategically managing its deposit base in a declining rate environment.

The Q1 2025 results reflect remarkably successful integration of the FNCB acquisition, with merger-related expenses plummeting to just $0.2 million from $5.0 million in the previous quarter. This reduction has allowed the true earnings potential of the combined entity to emerge, with core pre-provision revenue reaching $18.4 million, up significantly from $14.6 million in Q4 2024.

The bank's net interest margin expanded impressively by 25 basis points to 3.50%, outperforming many peers in a challenging interest rate environment. This figure includes 32 basis points (approximately $3.7 million) from purchase accounting accretion, meaning the "core" margin is closer to 3.18%. As this accretion benefit gradually diminishes, maintaining margin performance will require continued disciplined balance sheet management.

Following the Federal Reserve's 100 basis point reduction in rates since September 2024, Peoples demonstrated exceptional liability management. While earning asset yields decreased only 1 basis point to 5.50%, the cost of deposits fell 24 basis points to 1.96%, creating favorable repricing asymmetry that drove margin expansion.

The 50.6% increase in quarterly dividend to $0.6175 per share signals management's confidence in sustainable earnings power. The deposit composition remains healthy with noninterest-bearing deposits representing 20.3% of the total, while the seasonal $90.6 million reduction in total deposits reflects prudent management of higher-cost funding sources. This strategic approach to managing the liability side of the balance sheet has positioned the bank well for the evolving interest rate environment.

DUNMORE, Pa., May 1, 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 months ended March 31, 2025.

Peoples reported net income of $15.0 million, or $1.49 per diluted share for the three months ended March 31, 2025, compared to a net income of $6.1 million, or $0.61 per diluted share for the three months ended December 31, 2024.  Return on average assets and return on average equity for the three months ended March 31, 2025 was 1.22% and 12.70% on an annualized basis compared to 0.47% and 5.07% for the three months ended December 31, 2024.

Net income on a linked-quarter basis, increased primarily due to higher net interest income, a lower provision for credit losses and reduced noninterest expenses. On July 1, 2024, Peoples consummated the merger of FNCB Bancorp, Inc. ("FNCB") into Peoples and the merger of FNCB Bank into the Bank (collectively referred to as the "FNCB merger").  Non-recurring acquisition related expenses totaled $0.2 million in the quarter ended March 31, 2025 compared to $5.0 million in the three months ended December 31, 2024.

In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity, core net income and pre-provision revenue ratios, and tax-equivalent net interest income and related ratios, among others.  The reported results included in this release contain items, which Peoples considers non-core, namely acquisition related expenses, nonrecurring provisions for non-purchase credit deteriorated ("non-PCD") loans and gain or loss on the sale of securities available for sale.  Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends.  Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables.  The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

Core net income and core earnings per diluted share¹, non-GAAP measures, exclude the non-recurring acquisition related expenses of $0.2 million and $5.0 million incurred during the three months ended March 31, 2025 and December 31, 2024, respectively, and totaled $15.1 million or $1.51 per diluted share for the three months ended March 31, 2025 compared to $10.0 million, or $0.99 per diluted share for the three months ended December 31, 2024.

Income before income taxes was $18.3 million and $5.8 million for the three months ended March 31, 2025 and December 31, 2024, respectively.  Pre-provision net revenue (PPNR)¹ and PPNR per diluted share¹, non-GAAP measures, for the three months ended March 31, 2025 were $18.3 million or $1.82 per diluted share.  The PPNR and PPNR diluted earnings per share for the prior quarter were $9.6 million or $0.96 per diluted share.  Core pre-provision net revenue (PPNR)¹ and core PPNR per diluted share¹, non-GAAP measures, which exclude acquisition related expenses, the provision for credit losses and the provision for credit losses on unfunded commitments from income before taxes, for the three months ended March 31, 2025 were $18.4 million or $1.83 per diluted share.  The core PPNR and core PPNR diluted earnings per share for the prior quarter were $14.6 million or $1.46 per diluted share.

Merger with FNCB

Peoples acquired FNCB and its wholly-owned subsidiary FNCB Bank by merger on July 1, 2024.  The merger and acquisition method of accounting was used to account for the transaction with Peoples as the acquirer.  The Company recorded the assets and liabilities of FNCB at their respective fair values as of July 1, 2024.  The transaction was valued at approximately $133.7 million.  Primary reasons for the merger included: expansion of the branch network and enhancing market share positions in northeastern Pennsylvania; attractive low-cost funding base; strong cultural alignment and a deep commitment to shareholders, customers, employees, and communities served by Peoples and FNCB, meaningful value creation to shareholders; increased trading liquidity for both companies and increased dividends for Peoples shareholders.

At the time of the merger, FNCB contributed, after fair value purchase accounting adjustments, approximately $1.8 billion in assets, $421.9 million in investments, $1.2 billion in loans, $1.4 billion in deposits, $226.3 million in Federal Home Loan Bank ("FHLB") advances and other borrowings, and $8.0 million in junior subordinated debt.  The excess of the merger consideration over the fair value of the net FNCB assets acquired and liabilities assumed resulted in $12.6 million of goodwill.  The FNCB merger also resulted in a core deposit intangible valued at $36.6 million or 5.1% of core deposits.

The Company's financial results for any periods ended prior to July 1, 2024 only reflect Peoples results on a stand-alone basis.  As a result of the FNCB merger and the below listed adjustments related to the FNCB merger, the Company's financial results for the three months ended March 31, 2025 may not be directly comparable to prior reported periods. The following schedule highlights specific merger related activity for the three months ended March 31, 2025 and December 31, 2024:

Schedule of Merger & Acquisition Costs and Non-Recurring Merger Related Activity (Unaudited)
			Quarter Ended			Quarter Ended
(Dollars in thousands)			March 31, 2025			December 31, 2024
Acquisition related expenses		$	154		$	4,990
Total net M&A costs and non-recurring transaction costs		$	154		$	4,990

NOTABLES IN THE QUARTER

• Paid a first quarter dividend of $0.6175 per share, representing an increase of 50.6% over the March 31, 2024 dividend.
• Allowance for credit losses to loans was 1.03% at March 31, 2025 compared to 1.05% and 0.79% at December 31, 2024 and March 31, 2024, respectively.
• Return on average equity for the three months ended March 31, 2025 was 12.70% on an annualized basis compared to 5.07% for the three months ended December 31, 2024; excluding the non-recurring charges, core return on average equity¹, a non-GAAP measure, was 12.80% on an annualized basis for the three months ended March 31, 2025 compared to 8.31% for the three months ended December 31, 2024.
• Return on average assets for the three months ended March 31, 2025 was 1.22% on an annualized basis compared to 0.47% for the three months ended December 31, 2024; excluding the non-recurring charges, core return on average assets¹, a non-GAAP measure, was 1.23% on an annualized basis for the three months ended March 31, 2025 compared to 0.76% for the three months ended December 31, 2024.
• The efficiency ratio¹, a non-GAAP measure, was 55.77% for the three months ended March 31, 2025, compared to 63.03% for the three months ended December 31, 2024
• Book value per common share at March 31, 2025 was $48.21 compared to $46.94 and $48.18 at December 31, 2024 and March 31, 2024, respectively.
• Tangible book value per common share¹, a non-GAAP measure, was $37.35 at March 31, 2025 compared to $35.88 and $39.20 at December 31, 2024 and March 31, 2024, respectively.

INCOME STATEMENT REVIEW

• Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure¹, for the three months ended March 31, 2025 was 3.50%, an increase of 25 basis points compared to 3.25% for the three months ended December 31, 2024. The net accretion impact of purchase accounting marks was $3.7 million of net interest income in each period, which represented 32 basis points and 30 basis points of NIM for the three months ended March 31, 2025 and December 31, 2024, respectively.
• The tax-equivalent yield on interest-earning assets, a non-GAAP measure¹, decreased 1 basis point to 5.50% during the three months ended March 31, 2025 from 5.51% during the three months ended December 31, 2024.
• The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 30 basis points to 2.58% for the three months ended March 31, 2025 when compared to 2.88% during the three months ended December 31, 2024.
• The cost of interest-bearing deposits decreased 29 basis points during the three months ended March 31, 2025 to 2.46% from 2.75% in the three months ended December 31, 2024.
• The cost of total deposits for the three months ended March 31, 2025 was 1.96%, a decrease of 24 basis points from 2.20% for the three months ended December 31, 2024.

First Quarter 2025 Results – Comparison to Fourth Quarter 2024

Net interest income for the three months ended March 31, 2025 increased $1.0 million to $39.5 million from $38.5 million for the three months ended December 31, 2024.  Tax-equivalent net interest income, a non-GAAP measure¹, for the three months ended March 31, 2025 increased $1.0 million or 2.6% to $40.2 million from $39.2 million for the three months ended December 31, 2024.  The increase in tax-equivalent net interest income was due to a $4.4 million decrease in interest expense that was partially offset by a $3.4 million decrease in tax-equivalent interest income.

Lower interest income was the result of decreases in the volume of earning assets and lower rates on floating rate assets resulting from the Federal Open Market Committee's ("FOMC") 100 basis point cut to the federal funds rate since September 2024.  Average loans, net, decreased $57.0 million when comparing the three months ended March 31, 2025 to the prior three month period ended December 31, 2024.  Average investments totaled $643.0 million in the three months ended March 31, 2025 and $628.9 million in the three months ended December 31, 2024 an increase of $14.1 million.  Average federal funds sold decreased $103.5 million to $26.0 million for the three months ended March 31, 2025 as funds were used for seasonal deposit outflows.

The decrease in interest expense for the three months ended March 31, 2025 was due primarily to lowering rates paid on consumer, business, and municipal deposit accounts in response to the FOMC's aforementioned cut to the federal funds rate, coupled with the reduced balances.  The Company's total cost of deposits decreased 24 basis points to 1.96% during the three months ended March 31, 2025 compared to 2.20 % for the prior quarter.  The cost of interest-bearing deposits decreased 29 basis point to 2.46% from 2.75% in the prior quarter.

Average interest-bearing liabilities decreased $168.5 million for the three months ended March 31, 2025, compared to the three months ended December 31, 2024.  Average interest-bearing deposits decreased $136.0 million and represented 79.7% of total average deposits in the three months ended March 31, 2025 as compared to 79.8% in the three months ended December 31, 2024.  Average noninterest-bearing deposits decreased $29.2 million and represented 20.3% of total average deposits in the three months ended March 31, 2025 as compared to 20.2% in the three months ended December 31, 2024.  Short-term borrowings averaged $20.2 million in the three month period ended March 31, 2025 at an average cost of 4.52% compared to $39.3 million in short-term borrowings at an average cost of 4.80% during the three months ended December 31, 2024.  Long-term debt averaged $97.8 million in the three month period ended March 31, 2025 at an average cost of 4.88% compared to $111.1 million at an average cost of 4.97% in the three months ended December 31, 2024.

For the three months ended March 31, 2025, $0.2 million was recorded to the provision for credit losses compared to $3.4 million in the prior quarter.  The provision for the 1st quarter of 2025 declined from the previous quarter due mainly to a reduction in qualitative factors for the equipment financing loan portfolio as a result of stabilized loan balances along with a decline in the model loss rate primarily driven by a change in economic forecasting during the quarter.

Noninterest income was $6.3 million and $5.5 million for the three months ended March 31, 2025 and December 31, 2024, respectively.  Higher noninterest income was due to a $680 thousand gain on the sale of fixed assets due to the sale of the Company's former corporate headquarters in Scranton, PA, coupled with net gains on equity investments and an increased cash surrender value of life insurance, partially offset by lower interest rate swap revenue during the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024.

Noninterest expense decreased $7.4 million to $27.4 million for the three months ended March 31, 2025, from $34.8 million for the three months ended December 31, 2024.  Excluding acquisition related expenses, which included legal and consulting, core system deconversion fees and severance payments, of $0.2 million in the quarter ended March 31, 2025 and $5.0 million in the prior quarter, noninterest expenses decreased $2.6 million.

Salaries and employee benefits were $1.8 million lower due to the prior period accrual of $1.8 million for year-end cash incentives and a current period $0.5 million accrual adjustment related to the Company's long-term equity incentive plan which was offset by higher payroll taxes of $0.5 million.  

Net occupancy and equipment expense increased $0.2 million from the prior quarter due to higher seasonal snow removal and utility expenses.  Acquisition related expenses decreased $4.8 million to $0.2 million.  Other expenses decreased $1.0 million to $5.4 million for the first quarter which included a $0.2 million credit to the reserve on unfunded commitments.  Additionally, the prior period included a $0.4 million write-down of a former branch property and an additional $0.4 million in check and debit card losses.  These reductions to other expenses, were partially offset by an increase to Pennsylvania bank and trust company shares tax expense and accounting and auditing expenses..

Income tax expense was $3.2 million for the three months ended March 31, 2025, compared to a benefit of $0.3 million for the three months ended December 31, 2024.  The higher tax rate was due to higher pre-tax income.  The prior quarter's lower tax rate was due to the impact of merger-related non-recurring permanent tax adjustments, such as tax-exempt income and BOLI income, on a lower pre-tax income base.

BALANCE SHEET REVIEW

At March 31, 2025, total assets, loans, and deposits were $5.0 billion, $4.0 billion, and $4.3 billion, respectively.

Total loans declined $2.0 million during the first quarter to $4.0 billion at March 31, 2025.  Reductions in commercial real estate, indirect auto, and other consumer loans, were partially offset by growth in commercial loans, residential real estate loans and equipment financing loans. 

Total investments were $582.2 million at March 31, 2025, compared to $606.9 million at December 31, 2024.  At March 31, 2025, the available for sale securities totaled $503.0 million and the held to maturity securities totaled $76.7 million.  The unrealized loss on the available for sale securities decreased $5.6 million from $49.0 million at December 31, 2024, to $43.4 million at March 31, 2025.  The unrealized losses on the held to maturity portfolio totaled $11.9 million and $13.0 million at March 31, 2025, and December 31, 2024, respectively.

Total deposits decreased $90.6 million during the three months ended March 31, 2025, due primarily to seasonal outflows of non-maturity deposits and reductions in brokered CDs.  Noninterest-bearing deposits decreased $34.1 million and interest-bearing deposits decreased $56.5 million during the three months ended March 31, 2025.  The Company had $235.3 million and $256.4 million of longer-term brokered CDs at March 31, 2025, and December 31, 2024, respectively.

The Company's deposit base consisted of 42.0% retail accounts, 35.7% commercial accounts, 16.8% municipal relationships and 5.5% brokered deposits at March 31, 2025.  At March 31, 2025, total estimated uninsured deposits were $1.3 billion, or approximately 30.0% of total deposits.  Included in the uninsured total at March 31, 2025, is $497.3 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $2.0 million of affiliate company deposits.  The Bank also offers customers access to CDARS and ICS programs through which their deposits may be allocated to separate FDIC-insured institutions, while they are able to maintain their relationship with the Bank.

In addition to deposit gathering and current long-term debt, the Company has additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities.  At March 31, 2025, available borrowing capacity totaled $1.1 billion at the FHLB and $583.2 million at the Federal Reserve's Discount Window.  At March 31, 2025, the Company had $77.1 million in cash and cash equivalents, a decrease of $58.8 million from $135.9 million at December 31, 2024.  For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 14.

The Company maintained its well capitalized position at March 31, 2025.  Stockholders' equity equaled $481.9 million or $48.21 per share at March 31, 2025, and $469.0 million or $46.94 per share at December 31, 2024.  The increase in stockholders' equity from December 31, 2024, is primarily attributable to net income less dividends to shareholders and a $4.2 million decrease to accumulated other comprehensive loss ("AOCL") resulting from a reduction in the unrealized loss on available for sale securities.  The net after tax unrealized loss on available for sale securities included in AOCL at March 31, 2025, and December 31, 2024, was $33.9 million and $38.3 million, respectively.

Tangible book value¹, a non-GAAP measure, increased to $37.35 per share at March 31, 2025, from $35.88 per share at December 31, 2024.  Dividends declared for the three months ended March 31, 2025 amounted to $0.6175 per share.  

ASSET QUALITY REVIEW

Nonperforming assets were $23.7 million or 0.59% of loans, net, and foreclosed assets at March 31, 2025, compared to $23.0 million or 0.58% of loans, net, and foreclosed assets at December 31, 2024.  As a percentage of total assets, nonperforming assets were 0.47% at March 31, 2025, compared to 0.45% at December 31, 2024.  At March 31, 2025, and December 31, 2024, the Company had one foreclosed property recorded at $27 thousand.

During the three months ended March 31, 2025, net charge-offs were $0.9 million and the provision for credit losses totaled $0.2 million.  The allowance for credit losses equaled $41.1 million or 1.03% of loans, net, at March 31, 2025, compared to $41.8 million or 1.05% of loans, net, at December 31, 2024.

1	See reconciliation of non-GAAP financial measures on pg.16-17.

About Peoples:

Peoples Financial Services Corp. is the bank holding company of Peoples Security Bank and Trust Company, an independent community bank serving its retail and commercial customers through 39 full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York.  Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations, and government entities.  Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, and local and timely decision making.  For more information visit psbt.com.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp. and its subsidiaries (collectively, "Peoples") and other statements that are not historical facts that are considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.

Peoples cautions you that undue reliance should not be placed on forward-looking statements and that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: macroeconomic trends, including interest rates and inflation and their effect on our investment values; the effects of any recession in the United States; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs or retaliatory tariffs; impairment charges relating to our investment portfolio; credit risks in connection with our lending activities; the economic health of our market area; our exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; our ability to maintain an adequate allowance for credit losses; access to liquidity; the strength of our customer deposit levels; unrealized losses; reliance on our subsidiaries; accounting procedures, policies and requirements; changes in the value of goodwill; future pension plan costs; our ability to retain key personnel; the strength of our disclosure controls and procedures; environmental liabilities; reliance on third-party vendors and service providers; competition from non-bank entities; the development and us of AI in business processes, services, and products; our ability to prevent, detect and respond to cybersecurity threats and incidents; a failure of information technology, whether due to a breach, cybersecurity incident, or ability to keep pace with growth and developments; our ability to comply with privacy and data protection requirements; changes in U.S. or regional economic conditions; our ability to compete effectively in our industry; the soundness of other financial institutions; adverse changes in laws and regulations; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; our ability to realize the anticipated benefits of our merger with FNCB Bancorp, Inc.; future acquisitions or a change in control; and other factors that may be described in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

The forward-looking statements are made as of the date of this release, and, except as may be required 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)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
		2025			2024			2024			2024			2024
Key performance data:
Share and per share amounts:
Net income (loss)		$	1.49		$	0.61		$	(0.43)		$	0.46		$	0.49
Core net income (1)		$	1.51		$	0.99		$	1.64		$	0.59		$	0.55
Core net income (PPNR) (1)		$	1.83		$	1.46		$	1.83		$	0.73		$	0.79
Cash dividends declared		$	0.62		$	0.62		$	0.62		$	0.41		$	0.41
Book value		$	48.21		$	46.94		$	47.53		$	48.29		$	48.18
Tangible book value (1)		$	37.35		$	35.88		$	36.24		$	39.31		$	39.20
Market value:
High		$	53.70		$	58.76		$	50.49		$	46.25		$	48.84
Low		$	44.47		$	44.73		$	41.44		$	36.26		$	38.09
Closing		$	44.47		$	51.18		$	46.88		$	45.54		$	43.11
Market capitalization		$	444,499		$	511,325		$	468,549		$	321,388		$	304,238
Common shares outstanding			9,995,483			9,990,724			9,994,648			7,057,258			7,057,258
Selected ratios:
Return on average stockholders' equity			12.70	%		5.07	%		(3.58)	%		3.87	%		4.09	%
Core return on average stockholders' equity (1)			12.80	%		8.31	%		13.61	%		5.00	%		4.59	%
Return on average tangible stockholders' equity			16.46	%		6.62	%		(4.67)	%		4.76	%		5.02	%
Core return on average tangible stockholders' equity (1)			16.59	%		10.87	%		17.77	%		6.14	%		5.64	%
Return on average assets			1.22	%		0.47	%		(0.33)	%		0.37	%		0.38	%
Core return on average assets (1)			1.23	%		0.76	%		1.24	%		0.47	%		0.43	%
Stockholders' equity to total assets			9.64	%		9.21	%		8.86	%		9.42	%		9.27	%
Efficiency ratio (1)(2)			55.77	%		63.03	%		53.14	%		74.49	%		75.73	%
Nonperforming assets to loans, net, and foreclosed assets			0.59	%		0.58	%		0.53	%		0.25	%		0.27	%
Nonperforming assets to total assets			0.47	%		0.45	%		0.41	%		0.20	%		0.21	%
Net charge-offs to average loans, net			0.09	%		0.09	%		0.01	%		0.01	%		0.00	%
Allowance for credit losses to loans, net			1.03	%		1.05	%		0.97	%		0.81	%		0.79	%
Interest-bearing assets yield (FTE) (3)			5.50	%		5.51	%		5.63	%		4.58	%		4.56	%
Cost of funds			2.58	%		2.88	%		3.04	%		3.01	%		2.96	%
Net interest spread (FTE) (3)			2.92	%		2.62	%		2.59	%		1.57	%		1.60	%
Net interest margin (FTE) (3)			3.50	%		3.25	%		3.26	%		2.29	%		2.29	%

(1)	See Reconciliation of Non-GAAP financial measures on pages 16-17.
(2)	Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment securities available for sale and net gains (losses) on sales of fixed assets.
(3)	Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.

 

Peoples Financial Services Corp. Consolidated Statements of Income (Unaudited) (In thousands, except per share data)
		Mar 31			Mar 31
Three months ended		2025			2024
Interest income:
Interest and fees on loans:
Taxable		$	55,212		$	34,041
Tax-exempt			2,245			1,418
Interest and dividends on investment securities:
Taxable			4,134			1,918
Tax-exempt			396			371
Dividends			41			2
Interest on interest-bearing deposits in other banks			113			120
Interest on federal funds sold			285			1,127
Total interest income			62,426			38,997
Interest expense:
Interest on deposits			20,847			18,704
Interest on short-term borrowings			225			262
Interest on long-term debt			1,177			270
Interest on subordinated debt			443			443
Interest on junior subordinated debt			186
Total interest expense			22,878			19,679
Net interest income			39,548			19,318
Provision for credit losses			200			708
Net interest income after provision for credit losses			39,348			18,610
Noninterest income:
Service charges, fees, commissions and other			3,404			2,036
Merchant services income			231			115
Commissions and fees on fiduciary activities			537			551
Wealth management income			650			361
Mortgage banking income			114			92
Increase in cash surrender value of life insurance			526			279
Interest rate swap income (loss)			43			(24)
Net gains (losses) on equity investments			71			(8)
Net gains (losses) on sale of fixed assets			680			(9)
Total noninterest income			6,256			3,393
Noninterest expense:
Salaries and employee benefits expense			13,481			8,839
Net occupancy and equipment expense			6,610			4,716
Acquisition related expenses			154			486
Amortization of intangible assets			1,683
Other expenses			5,425			4,018
Total noninterest expense			27,353			18,059
Income before income taxes			18,251			3,944
Provision for income tax expense			3,242			478
Net income		$	15,009		$	3,466
Other comprehensive income:
Unrealized gains (losses) on investment securities available for sale		$	5,572		$	(2,441)
Change in derivative fair value			(148)			1,079
Income tax expense (benefit) related to other comprehensive income (loss)			1,183			(298)
Other comprehensive income (loss), net of income tax expense (benefit)			4,241			(1,064)
Comprehensive income		$	19,250		$	2,402
Share and per share amounts:
Net income - basic		$	1.50		$	0.49
Net income - diluted			1.49			0.49
Cash dividends declared		$	0.62		$	0.41
Average common shares outstanding - basic			9,992,922			7,052,912
Average common shares outstanding - diluted			10,043,186			7,102,112

 

Peoples Financial Services Corp. Consolidated Statements of Income (Loss) (Unaudited) (In thousands, except per share data)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
Three months ended		2025			2024			2024			2024			2024
Interest income:
Interest and fees on loans:
Taxable		$	55,212		$	57,048		$	59,412		$	34,406		$	34,041
Tax-exempt			2,245			2,238			2,299			1,399			1,418
Interest and dividends on investment securities:
Taxable			4,134			4,359			4,732			1,904			1,918
Tax-exempt			396			397			411			371			371
Dividends			41			40			62			2			2
Interest on interest-bearing deposits in other banks			113			113			150			115			120
Interest on federal funds sold			285			1,608			1,218			179			1,127
Total interest income			62,426			65,803			68,284			38,376			38,997
Interest expense:
Interest on deposits			20,847			24,718			26,398			18,114			18,704
Interest on short-term borrowings			225			474			550			633			262
Interest on long-term debt			1,177			1,389			1,389			269			270
Interest on subordinated debt			443			444			443			444			443
Interest on junior subordinated debt			186			267			260
Total interest expense			22,878			27,292			29,040			19,460			19,679
Net interest income			39,548			38,511			39,244			18,916			19,318
Provision for credit losses			200			3,369			14,458			596			708
Net interest income after provision for credit losses			39,348			35,142			24,786			18,320			18,610
Noninterest income:
Service charges, fees, commissions and other			3,404			3,368			3,384			1,885			2,036
Merchant services income			231			298			223			260			115
Commissions and fees on fiduciary activities			537			553			649			517			551
Wealth management income			650			633			708			416			361
Mortgage banking income			114			126			84			87			92
Increase in cash surrender value of life insurance			526			456			551			286			279
Interest rate swap income (loss)			43			260			(53)			102			(24)
Net gains (losses) on equity investments			71			(23)			175			(12)			(8)
Net gains on sale of investment securities available for sale									1
Net gains (losses) on sale of fixed assets			680			(165)			(3)			13			(9)
Total noninterest income			6,256			5,506			5,719			3,554			3,393
Noninterest expense:
Salaries and employee benefits expense			13,481			15,287			13,170			8,450			8,839
Net occupancy and equipment expense			6,610			6,386			6,433			4,589			4,716
Acquisition related expenses			154			4,990			9,653			1,071			486
Amortization of intangible assets			1,683			1,702			1,665
Other expenses			5,425			6,468			4,578			4,061			4,018
Total noninterest expense			27,353			34,833			35,499			18,171			18,059
Income (loss) before income taxes			18,251			5,815			(4,994)			3,703			3,944
Income tax expense (benefit)			3,242			(272)			(657)			421			478
Net income (loss)		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale		$	5,572		$	(10,175)		$	15,167		$	18		$	(2,441)
Reclassification adjustment for gains on available for sale securities included in net income									(1)
Change in benefit plan liabilities						1,518
Change in derivative fair value			(148)			817			(1,424)			160			1,079
Income tax expense (benefit) related to other comprehensive (loss) income			1,183			(1,686)			3,008			38			(298)
Other comprehensive income (loss), net of income tax expense  (benefit)			4,241			(6,154)			10,734			140			(1,064)
Comprehensive income (loss)		$	19,250		$	(67)		$	6,397		$	3,422		$	2,402
Share and per share amounts:
Net income - basic		$	1.50		$	0.61		$	(0.43)		$	0.47		$	0.49
Net income - diluted			1.49			0.61			(0.43)			0.46			0.49
Cash dividends declared		$	0.62		$	0.62		$	0.62		$	0.41		$	0.41
Average common shares outstanding - basic			9,992,922			9,994,605			9,987,627			7,057,258			7,052,912
Average common shares outstanding - diluted			10,043,186			10,051,337			10,044,449			7,114,115			7,102,112

 

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Three Months Ended
		March 31, 2025									March 31, 2024
		Average			Interest Income/			Yield/			Average			Interest Income/			Yield/
		Balance			Expense			Rate			Balance			Expense			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,698,124		$	55,212		6.05	%		$	2,632,554		$	34,041		5.20	%
Tax-exempt			280,555			2,842		4.11				225,293			1,795		3.20
Total loans			3,978,679			58,054		5.92				2,857,847			35,836		5.04
Investments:
Taxable			555,910			4,175		3.05				446,996			1,920		1.73
Tax-exempt			87,072			501		2.33				86,864			470		2.18
Total investments			642,982			4,676		2.95				533,860			2,390		1.80
Interest-bearing deposits			11,197			113		4.09				9,025			120		5.35
Federal funds sold			25,979			285		4.45				80,955			1,127		5.60
Total earning assets			4,658,837			63,128		5.50	%			3,481,687			39,473		4.56	%
Less: allowance for credit losses			42,084									22,290
Other assets			391,924									217,353
Total assets		$	5,008,677		$	63,128					$	3,676,750		$	39,473
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market accounts		$	687,522		$	6,570		3.88	%		$	754,889		$	7,135		3.80	%
Interest-bearing demand and NOW accounts			1,465,210			6,416		1.78				784,458			4,837		2.48
Savings accounts			498,791			361		0.29				422,815			275		0.26
Time deposits less than $100			424,363			4,228		4.04				409,192			4,337		4.26
Time deposits $100 or more			361,469			3,272		3.67				222,459			2,120		3.83
Total interest-bearing deposits			3,437,355			20,847		2.46				2,593,813			18,704		2.90
Short-term borrowings			20,176			225		4.52				19,687			262		5.35
Long-term debt			97,769			1,177		4.88				25,000			270		4.34
Subordinated debt			33,000			443		5.44				33,000			443		5.40
Junior subordinated debt			8,050			186		9.37
Total borrowings			158,995			2,031		5.18				77,687			975		5.05
Total interest-bearing liabilities			3,596,350			22,878		2.58	%			2,671,500			19,679		2.96	%
Noninterest-bearing deposits			875,053									616,610
Other liabilities			58,018									47,688
Stockholders' equity			479,256									340,952
Total liabilities and stockholders' equity		$	5,008,677								$	3,676,750
Net interest income/spread					$	40,250		2.92	%					$	19,794		1.60	%
Net interest margin								3.50	%								2.29	%
Tax-equivalent adjustments:
Loans					$	597								$	377
Investments						105									99
Total adjustments					$	702								$	476

The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.

 

Peoples Financial Services Corp. Details of Net Interest Income and Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
Three months ended		2025			2024			2024			2024			2024
Net interest income:
Interest income:
Loans, net:
Taxable		$	55,212		$	57,048		$	59,412		$	34,406		$	34,041
Tax-exempt			2,842			2,834			2,910			1,771			1,795
Total loans, net			58,054			59,882			62,322			36,177			35,836
Investments:
Taxable			4,175			4,399			4,794			1,906			1,920
Tax-exempt			501			502			520			469			470
Total investments			4,676			4,901			5,314			2,375			2,390
Interest on interest-bearing balances in other banks			113			113			150			115			120
Federal funds sold			285			1,608			1,218			179			1,127
Total interest income			63,128			66,504			69,004			38,846			39,473
Interest expense:
Deposits			20,847			24,718			26,398			18,114			18,704
Short-term borrowings			225			474			550			633			262
Long-term debt			1,177			1,389			1,389			269			270
Subordinated debt			443			444			443			444			443
Junior subordinated debt			186			267			260
Total interest expense			22,878			27,292			29,040			19,460			19,679
Net interest income		$	40,250		$	39,212		$	39,964		$	19,386		$	19,794
Loans, net:
Taxable			6.05	%		6.04	%		6.24	%		5.25	%		5.20	%
Tax-exempt			4.11	%		4.05	%		4.16	%		3.20	%		3.20	%
Total loans, net			5.92	%		5.90	%		6.09	%		5.09	%		5.04	%
Investments:
Taxable			3.05	%		3.23	%		3.12	%		1.73	%		1.73	%
Tax-exempt			2.33	%		2.29	%		2.31	%		2.19	%		2.18	%
Total investments			2.95	%		3.10	%		3.02	%		1.80	%		1.80	%
Interest-bearing balances with banks			4.09	%		4.93	%		5.55	%		5.28	%		5.35	%
Federal funds sold			4.45	%		4.94	%		5.26	%		5.68	%		5.60	%
Total interest-earning assets			5.50	%		5.51	%		5.63	%		4.58	%		4.56	%
Interest expense:
Deposits			2.46	%		2.75	%		2.91	%		2.92	%		2.90	%
Short-term borrowings			4.52	%		4.80	%		4.98	%		5.61	%		5.35	%
Long-term debt			4.88	%		4.97	%		4.94	%		4.33	%		4.34	%
Subordinated debt			5.44	%		5.35	%		5.34	%		5.41	%		5.40	%
Junior subordinated debt			9.37	%		13.23	%		12.93	%
Total interest-bearing liabilities			2.58	%		2.88	%		3.04	%		3.01	%		2.96	%
Net interest spread			2.92	%		2.62	%		2.59	%		1.57	%		1.60	%
Net interest margin			3.50	%		3.25	%		3.26	%		2.29	%		2.29	%

 

Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
At period end		2025			2024			2024			2024			2024
Assets:
Cash and due from banks		$	60,125		$	47,029		$	97,090		$	41,234		$	32,009
Interest-bearing balances in other banks			9,196			8,593			10,286			8,722			8,259
Federal funds sold			7,781			80,229			178,093						69,700
Investment securities:
Available for sale			503,043			526,329			562,486			385,240			394,413
Held to maturity			76,689			78,184			79,861			81,598			83,306
Equity investments carried at fair value			2,500			2,430			3,921			78			91
Total investments			582,232			606,943			646,268			466,916			477,810
Loans held for sale			420						803						300
Loans			3,991,539			3,993,505			4,069,683			2,869,553			2,858,412
Less: allowance for credit losses			41,054			41,776			39,341			23,123			22,597
Net loans			3,950,485			3,951,729			4,030,342			2,846,430			2,835,815
Goodwill			75,986			75,986			76,958			63,370			63,370
Premises and equipment, net			72,492			73,283			75,877			58,565			59,097
Bank owned life insurance			87,953			87,429			87,401			49,955			49,673
Deferred tax assets			32,628			35,688			33,078			14,460			14,241
Accrued interest receivable			16,436			15,632			17,979			13,326			13,565
Other intangible assets, net			32,488			34,197			35,907
Other assets			71,136			74,919			70,056			53,077			45,299
Total assets		$	4,999,358		$	5,091,657		$	5,360,138		$	3,616,055		$	3,669,138
Liabilities:
Deposits:
Noninterest-bearing		$	901,398		$	935,516		$	927,864		$	620,971		$	623,408
Interest-bearing			3,415,529			3,472,036			3,710,000			2,443,988			2,580,530
Total deposits			4,316,927			4,407,552			4,637,864			3,064,959			3,203,938
Short-term borrowings			14,840			15,900			37,346			104,250			20,260
Long-term debt			88,403			98,637			111,489			25,000			25,000
Subordinated debt			33,000			33,000			33,000			33,000			33,000
Junior subordinated debt			8,063			8,039			8,015
Accrued interest payable			5,439			5,503			6,829			5,507			5,327
Other liabilities			50,832			54,076			50,544			42,532			41,621
Total liabilities			4,517,504			4,622,707			4,885,087			3,275,248			3,329,146
Stockholders' equity:
Common stock			20,014			19,995			19,993			14,122			14,122
Capital surplus			250,488			250,695			250,578			122,449			122,162
Retained earnings			247,806			238,955			239,021			249,511			249,123
Accumulated other comprehensive loss			(36,454)			(40,695)			(34,541)			(45,275)			(45,415)
Total stockholders' equity			481,854			468,950			475,051			340,807			339,992
Total liabilities and stockholders' equity		$	4,999,358		$	5,091,657		$	5,360,138		$	3,616,055		$	3,669,138

 

Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
At period end		2025			2024			2024			2024			2024
Commercial
Taxable		$	570,966		$	556,630		$	616,369		$	411,112		$	400,439
Non-taxable			282,031			279,390			273,710			220,893			224,083
Total			852,997			836,020			890,079			632,005			624,522
Real estate
Commercial real estate			2,275,241			2,294,113			2,309,588			1,793,652			1,794,086
Residential			560,067			551,383			550,590			369,671			361,490
Total			2,835,308			2,845,496			2,860,178			2,163,323			2,155,576
Consumer
Indirect Auto			108,819			117,914			130,380			66,792			71,675
Consumer Other			14,209			14,955			15,580			7,433			6,639
Total			123,028			132,869			145,960			74,225			78,314
Equipment Financing			180,206			179,120			173,466
Total		$	3,991,539		$	3,993,505		$	4,069,683		$	2,869,553		$	2,858,412

 

		Mar 31			Dec 31			Sept 30			June 30			Mar 31
At quarter end		2025			2024			2024			2024			2024
Nonperforming assets:
Nonaccrual/restructured loans		$	23,002		$	22,499		$	20,949		$	7,116		$	7,056
Accruing loans past due 90 days or more			655			458			569						656
Foreclosed assets			27			27			27			27
Total nonperforming assets		$	23,684		$	22,984		$	21,545		$	7,143		$	7,712
			Mar 31			Dec 31			Sept 30			June 30			Mar 31
Three months ended			2025			2024			2024			2024			2024
Allowance for credit losses:
Beginning balance		$	41,776		$	39,341		$	23,123		$	22,597		$	21,895
Merger-related adjustments - Non PCD Loans									14,328
Merger-related adjustments - PCD Loans									1,841
Charge-offs			1,233			1,108			534			135			108
Recoveries			311			174			453			65			102
Provision for credit losses			200			3,369			130			596			708
Ending balance		$	41,054		$	41,776		$	39,341		$	23,123		$	22,597

 

Peoples Financial Services Corp. Deposit and Liquidity Detail (Unaudited) (In thousands)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
At period end		2025			2024			2024			2024			2024
Interest-bearing deposits:
Money market accounts		$	967,661		$	936,239		$	1,018,575		$	690,631		$	759,305
Interest-bearing demand and NOW accounts			1,177,507			1,238,853			1,229,083			715,890			754,673
Savings accounts			502,851			492,180			509,412			397,827			415,459
Time deposits less than $250			599,127			620,725			824,791			504,879			517,009
Time deposits $250 or more			168,383			184,039			128,139			134,761			134,084
Total interest-bearing deposits			3,415,529			3,472,036			3,710,000			2,443,988			2,580,530
Noninterest-bearing deposits			901,398			935,516			927,864			620,971			623,408
Total deposits		$	4,316,927		$	4,407,552		$	4,637,864		$	3,064,959		$	3,203,938

 

			March 31, 2025
At period end			Amount		Percent of Total			Number of accounts		Average Balance
Deposit Detail:
Retail		$	1,813,048		42.0	%		96,387	$	19
Commercial			1,540,565		35.7			18,472		83
Municipal			728,027		16.8			2,422		301
Brokered			235,287		5.5			26		9,050
Total Deposits		$	4,316,927		100.0	%		117,307	$	37
Uninsured		$	1,294,829		30.0	%
Insured			3,022,098		70.0
			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 March 31, 2025			Total Available			Outstanding			for Future Liquidity
FHLB advances (1)		$	1,623,698		$	507,127		$	1,116,571
Federal Reserve - Discount Window			583,213						583,213
Correspondent bank lines of credit			18,000						18,000
Other sources of liquidity:
Brokered deposits			749,904			235,287			514,617
Unencumbered securities			167,629						167,629
Total sources of liquidity		$	3,142,444		$	742,414		$	2,400,030

(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)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
Average quarterly balances		2025			2024			2024			2024			2024
Assets:
Loans, net:
Taxable		$	3,698,124		$	3,757,273		$	3,790,138		$	2,637,164		$	2,632,554
Tax-exempt			280,555			278,429			278,496			222,655			225,293
Total loans, net			3,978,679			4,035,702			4,068,634			2,859,819			2,857,847
Investments:
Taxable			555,910			541,526			611,032			443,146			446,996
Tax-exempt			87,072			87,419			89,532			86,418			86,864
Total investments			642,982			628,945			700,564			529,564			533,860
Interest-bearing balances with banks			11,197			9,116			10,820			8,763			9,025
Federal funds sold			25,979			129,517			92,171			12,672			80,955
Total interest-earning assets			4,658,837			4,803,280			4,872,189			3,410,818			3,481,687
Other assets			349,840			400,179			419,005			198,248			195,063
Total assets		$	5,008,677		$	5,203,459		$	5,291,194		$	3,609,066		$	3,676,750
Liabilities and stockholders' equity:
Deposits:
Interest-bearing		$	3,437,355		$	3,573,321		$	3,607,405		$	2,496,298		$	2,593,813
Noninterest-bearing			875,053			904,274			908,776			620,256			616,610
Total deposits			4,312,408			4,477,595			4,516,181			3,116,554			3,210,423
Short-term borrowings			20,176			39,319			43,895			45,383			19,687
Long-term debt			97,769			111,135			111,804			25,000			25,000
Subordinated debt			33,000			33,000			33,000			33,000			33,000
Junior subordinated debt			8,050			8,026			8,000
Other liabilities			58,018			56,445			96,177			48,630			47,688
Total liabilities			4,529,421			4,725,520			4,809,057			3,268,567			3,335,798
Stockholders' equity			479,256			477,939			482,137			340,499			340,952
Total liabilities and stockholders' equity		$	5,008,677		$	5,203,459		$	5,291,194		$	3,609,066		$	3,676,750

 

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
		Mar 31			Dec 31			Sept 30			June 30			Mar 31
Three months ended		2025			2024			2024			2024			2024
Core net income per share:
Net income (loss) GAAP		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
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			154			4,990			9,653			1,071			486
Less: Acquisition related expenses tax adjustment			34			1,089			1,270			122			59
Core net income		$	15,129		$	9,988		$	16,489		$	4,231		$	3,893
Average common shares outstanding - diluted			10,043,186			10,051,337			10,044,449			7,114,115			7,102,112
Core net income per share		$	1.51		$	0.99		$	1.64		$	0.59		$	0.55
Tangible book value:
Total stockholders' equity		$	481,854		$	468,950		$	475,051		$	340,807		$	339,992
Less: Goodwill			75,986			76,325			76,958			63,370			63,370
Less: Other intangible assets, net			32,488			34,197			35,907
Total tangible stockholders' equity		$	373,380		$	358,428		$	362,186		$	277,437		$	276,622
Common shares outstanding			9,995,483			9,990,724			9,994,648			7,057,258			7,057,258
Tangible book value per share		$	37.35		$	35.88		$	36.24		$	39.31		$	39.20
Core return on average stockholders' equity:
Net income (loss) GAAP		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
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			154			4,990			9,653			1,071			486
Less: Acquisition related expenses tax adjustment			34			1,089			1,270			122			59
Core net income		$	15,129		$	9,988		$	16,489		$	4,231		$	3,893
Average stockholders' equity		$	479,256		$	477,939		$	482,137		$	340,499		$	340,952
Core return on average stockholders' equity			12.80	%		8.31	%		13.61	%		5.00	%		4.59	%
Return on average tangible stockholders' equity:
Net income (loss) GAAP		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
Average stockholders' equity		$	479,256		$	477,939		$	482,137		$	340,499		$	340,952
Less: average intangibles			109,386			112,399			113,032			63,370			63,370
Average tangible stockholders' equity		$	369,870		$	365,540		$	369,105		$	277,129		$	277,582
Return on average tangible stockholders' equity			16.46	%		6.62	%		(4.67)	%		4.76	%		5.02	%
Core return on average tangible stockholders' equity:
Net income (loss) GAAP		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
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			154			4,990			9,653			1,071			486
Less: Acquisition related expenses tax adjustment			34			1,089			1,270			122			59
Core net income		$	15,129		$	9,988		$	16,489		$	4,231		$	3,893
Average stockholders' equity		$	479,256		$	477,939		$	482,137		$	340,499		$	340,952
Less: average intangibles			109,386			112,399			113,032			63,370			63,370
Average tangible stockholders' equity		$	369,870		$	365,540		$	369,105		$	277,129		$	277,582
Core return on average tangible stockholders' equity			16.59	%		10.87	%		17.77	%		6.14	%		5.64	%
Core return on average assets:
Net income (loss) GAAP		$	15,009		$	6,087		$	(4,337)		$	3,282		$	3,466
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			154			4,990			9,653			1,071			486
Less: Acquisition related expenses tax adjustment			34			1,089			1,270			122			59
Core net income		$	15,129		$	9,988		$	16,489		$	4,231		$	3,893
Average assets		$	5,008,677		$	5,203,459		$	5,291,194		$	3,609,066		$	3,676,750
Core return on average assets			1.23	%		0.76	%		1.24	%		0.47	%		0.43	%
Pre-provision net revenue (PPNR) per share:
Income (Loss) before taxes (GAAP)		$	18,251		$	5,815		$	(4,994)		$	3,703		$	3,944
Add: ACL provision for FNCB acquired legacy loans									14,328
Add: Provision for credit losses			200			3,369			130			596			708
Add: Provision for credit losses on unfunded commitments			(202)			452			(785)			(197)			487
PPNR (non-GAAP)		$	18,249		$	9,636		$	8,679		$	4,102		$	5,139
Average common shares outstanding-diluted			10,043,186			10,051,337			10,044,449			7,114,115			7,102,112
PPNR per share (non-GAAP)		$	1.82		$	0.96		$	0.86		$	0.58		$	0.72
Core pre-provision net revenue (PPNR) per share:
Income (Loss) before taxes (GAAP)		$	18,251		$	5,815		$	(4,994)		$	3,703		$	3,944
Add: Acquisition related expenses			154			4,990			9,653			1,071			486
Add: ACL provision for FNCB acquired legacy loans									14,328
Add: Provision for credit losses			200			3,369			130			596			708
Add: Provision for credit losses on unfunded commitments			(202)			452			(785)			(197)			487
Core PPNR (non-GAAP)		$	18,403		$	14,626		$	18,332		$	5,173		$	5,625
Average common shares outstanding-diluted			10,043,186			10,051,337			10,044,449			7,114,115			7,102,112
Core PPNR per share (non-GAAP)		$	1.83		$	1.46		$	1.83		$	0.73		$	0.79

(1)	Current quarter tax adjustments use a rate of 21.8%, prior quarters use the effective tax rate for the quarter.

 

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three months ended March 31, 2025 and 2024:
Three months ended March 31		2025			2024
Interest income (GAAP)		$	62,426		$	38,997
Adjustment to FTE			702			476
Interest income adjusted to FTE (non-GAAP)			63,128			39,473
Interest expense			22,878			19,679
Net interest income adjusted to FTE (non-GAAP)		$	40,250		$	19,794

 

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 months ended March 31, 2025 and 2024:
Three months ended March 31		2025			2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)		$	27,353		$	18,059
Less: Amortization of intangible assets expense			1,683
Less: Acquisition related expenses			154			486
Noninterest expense (non-GAAP)			25,516			17,573
Net interest income (GAAP)			39,548			19,318
Plus: Taxable equivalent adjustment			702			476
Noninterest income (GAAP)			6,256			3,393
Less: Net gains (losses) on equity securities			71			(8)
Less: Gains (losses) on sale of fixed assets			680			(9)
Net interest income (FTE) plus noninterest income (non-GAAP)		$	45,755		$	23,204
Efficiency ratio (non-GAAP)			55.77	%		75.73	%

 

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SOURCE Peoples Financial Services Corp.

FAQ

What was PFIS's earnings per share in Q1 2025?

Peoples Financial Services Corp. reported earnings of $1.49 per diluted share for Q1 2025, compared to $0.61 per diluted share in Q4 2024.

How much did PFIS increase its dividend in Q1 2025?

PFIS increased its quarterly dividend by 50.6% to $0.6175 per share compared to March 2024.

What was the impact of the FNCB merger on PFIS's Q1 2025 results?

Merger-related expenses decreased to $0.2 million in Q1 2025 from $5.0 million in Q4 2024, contributing to improved financial performance.

What was PFIS's Return on Average Equity in Q1 2025?

PFIS reported a Return on Average Equity of 12.70% for Q1 2025, up from 5.07% in Q4 2024.

How did PFIS's deposit base change in Q1 2025?

Total deposits decreased by $90.6 million during Q1 2025, with noninterest-bearing deposits declining by $34.1 million, primarily due to seasonal outflows.