PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Fourth Quarter and Full Year 2025 Earnings

Q: What were Peoples Financial (PFIS) Q4 2025 earnings and EPS?

Peoples reported $12.0 million net income and $1.19 diluted EPS for Q4 2025. According to the company, core net income for the quarter was $13.7 million , excluding a strategic $2.2 million pre-tax securities sale loss.

Q: How did Peoples Financial (PFIS) perform for full-year 2025?

For full-year 2025, Peoples reported $59.2 million net income and $5.88 diluted EPS. According to the company, performance benefited from higher earning assets, merger accretion, and a lower provision for credit losses.

Q: Why did PFIS record a loss on investment securities in Q4 2025?

PFIS recorded a $2.2 million pre-tax loss after selling lower-yielding treasuries to reposition its portfolio. According to the company, proceeds funded higher-yielding AFS purchases expected to recover the loss within ~10 months.

Q: What happened to Peoples Financial's net interest margin (NIM) in 2025?

NIM improved to 3.60% in Q4 2025 and FTE NIM averaged 3.58% for 2025. According to the company, NIM expansion reflected higher yields on earning assets and lower cost of deposits.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Peoples Financial Services Corp. (NASDAQ: PFIS) reported unaudited results for Q4 and full-year 2025. Net income was $12.0M (Q4) and $59.2M (FY), or $1.19 and $5.88 per diluted share, respectively. Core net income was $13.7M (Q4) and $61.1M (FY).

The quarter included a $2.2M pre-tax loss on the sale of AFS treasuries; the company sold $78.6M of treasuries and purchased higher-yielding AFS securities with ~4.67% book yield. NIM was 3.60% (Q4) and FTE NIM 3.58% (FY). Total loans were $4.1B; book value per share rose to $52.01.

Positive

Net income rose to $59.2M for 2025 (annual)
Core net income $61.1M for 2025
FTE NIM expanded 74 bps to 3.58% for 2025
Book value per share increased to $52.01
Non-performing assets improved to 0.23%

Negative

Q4 pre-tax loss of $2.2M from AFS treasury sales
Quarterly EPS fell 21% QoQ to $1.19
Subordinated debt cost increased to 8.35% average

Key Figures

Q4 2025 net income: $12.0M Q4 2025 diluted EPS: $1.19 Full-year 2025 net income: $59.2M +5 more

8 metrics

Q4 2025 net income $12.0M Three months ended December 31, 2025

Q4 2025 diluted EPS $1.19 Three months ended December 31, 2025

Full-year 2025 net income $59.2M Year ended December 31, 2025

Full-year 2025 diluted EPS $5.88 Year ended December 31, 2025

Core net income 2025 $61.1M Non-GAAP, year ended December 31, 2025

Book value per share $52.01 At December 31, 2025

Tangible book value/share $41.64 Non-GAAP, at December 31, 2025

Q4 2025 NIM (FTE) 3.60% Three months ended December 31, 2025

Market Reality Check

Price: $52.10 Vol: Volume 23,589 is modestly...

normal vol

$52.10 Last Close

Volume Volume 23,589 is modestly above the 20-day average of 20,195, indicating slightly elevated interest around the earnings release. normal

Technical Trading above the 200-day MA at 49.09 and about 3.87% below the 52-week high of 54.2, reflecting a strong pre-news positioning.

Peers on Argus

PFIS is up 1.62%, while several regional bank peers (e.g., AROW +2.33%, NRIM +2....

PFIS is up 1.62%, while several regional bank peers (e.g., AROW +2.33%, NRIM +2.35%, UNTY +2.00%) also show gains, but scanner data does not flag a coordinated sector momentum move.

Previous Earnings Reports

5 past events · Latest: Jul 31 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jul 31	Q2 2025 earnings	Positive	+0.5%	Strong Q2 2025 earnings with higher net income and improved efficiency metrics.
May 01	Q1 2025 earnings	Positive	+2.2%	Robust Q1 2025 results with higher ROAA/ROAE and lower merger expenses.
Feb 06	Q4 2024 earnings	Neutral	-5.1%	Return to profitability in Q4 2024 but still impacted by merger-related items.
Nov 05	Q3 2024 earnings	Negative	+13.0%	Q3 2024 net loss driven by large merger-related credit and expense charges.
Jul 25	Q2 2024 earnings	Negative	+0.7%	Weak 2024 earnings with lower margins ahead of the FNCB merger close.

Pattern Detected

Earnings releases often see positive price reactions, but there is a mixed pattern with several instances where weak or complex earnings led to strong positive moves, indicating occasional divergence between fundamentals and near-term price response.

Recent Company History

Over the past few quarters, PFIS has transitioned from merger-related volatility in 2024 to stronger earnings in 2025. Earlier reports highlighted the FNCB merger’s drag from one-time charges, followed by improving net income, higher net interest margins, and better efficiency. This latest Q4 and full-year 2025 update extends that narrative with higher core earnings, improved ROAA/ROAE, and stronger asset quality, building on the integration benefits described in prior earnings releases.

Historical Comparison

earnings

+4.3 %

Average Historical Move

Historical Analysis

Past earnings headlines for PFIS saw an average move of about 4.31%. Today’s 1.62% gain is more muted, suggesting the market viewed these Q4 and full-year 2025 results as incrementally positive but not a major surprise.

Typical Pattern

Earnings releases show a progression from pressured 2024 results with heavy merger-related charges to stronger, cleaner profitability in 2025, as integration of the FNCB Bancorp transaction and margin expansion increasingly support ROAA, ROAE, and core net income.

Market Pulse Summary

This announcement details solid Q4 and full-year 2025 performance, with net income of $59.2M, strong...

Analysis

This announcement details solid Q4 and full-year 2025 performance, with net income of $59.2M, stronger core earnings, and improved ROAA/ROAE. Management also executed a securities portfolio repositioning, realizing a $2.2M loss to reinvest at higher yields. Compared with prior, merger-impacted periods, results show cleaner profitability and better asset quality. Investors may watch future net interest margin trends, loan growth, and any additional non-core items.

Key Terms

afS, non-gaap, roaa, roae, +4 more

8 terms

afS financial

"pre-tax loss ($1.8 million after tax) on the sale of available for sale ("AFS") investment securities"

AFS stands for "available-for-sale" and describes investments a company holds that it does not intend to trade frequently or hold until a promised payoff, but might sell in the future. Like items you keep in a garage waiting for the right buyer, their market values can swing and those gains or losses usually appear in a separate part of the company's equity until realized; investors watch AFS balances for hidden exposure to market risk and potential future gains or losses.

non-gaap financial

"Core net income, a non-GAAP measure[1], was $13.7 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

roaa financial

"Return on average assets ("ROAA") and return on average equity"

Return on Average Assets (ROAA) measures how efficiently a company turns its assets into profit by dividing net profit over a period by the average total assets it held during that period. It matters to investors because it shows whether a business is getting a good return from what it owns—like judging a car’s fuel efficiency by miles per gallon—helping compare profitability across companies of different sizes.

roae financial

"ROAA and return on average equity ("ROAE") on an annualized basis"

ROAE stands for Return on Average Equity, a profitability ratio that shows how much net income a company generates for its owners relative to the average amount of shareholder equity invested over a period. It’s like measuring the interest rate a business pays its owners on the capital they’ve left in the company, with the ‘average’ smoothing out swings in equity during the year. Investors use ROAE to compare how efficiently different companies turn owner capital into profits and to assess management’s ability to deliver returns over time.

tangible book value financial

"Tangible book value per common share, a non-GAAP measure1, increased to $41.64"

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

net interest margin financial

"Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

federal funds sold financial

"Average federal funds sold increased $5.2 million to $134.7 million"

Federal funds sold are short-term loans that a bank makes to other banks, usually overnight, using excess reserves it holds. Think of it as parking spare cash in a neighbor’s account for a night to earn a small return; it appears as an asset on the lender’s balance sheet. Investors watch this number because it signals a bank’s liquidity, how it manages short-term funding, and its exposure to changes in overnight interest rates.

efficiency ratio financial

"The efficiency ratio, a non-GAAP measure[3], was 59.53% and 56.45%"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

AI-generated analysis. Not financial advice.

01/30/2026 - 06:44 PM

MOOSIC, Pa., Jan. 30, 2026 /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 and year ended December 31, 2025.

Peoples reported net income of $12.0 million, or $1.19 per diluted share for the three months ended December 31, 2025, compared to net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025, and net income of $6.1 million, or $0.61 per diluted share for the three months ended December 31, 2024. Return on average assets ("ROAA") and return on average equity ("ROAE") on an annualized basis for the three months ended December 31, 2025, was 0.92% and 9.16% compared to 1.19% and 12.02% for the three months ended September 30, 2025, and 0.47% and 5.07% for the three months ended December 31, 2024. Net income in the current quarter was negatively impacted by the recognition of a $2.2 million pre-tax loss ($1.8 million after tax) on the sale of available for sale ("AFS") investment securities associated with a strategic portfolio repositioning. Net income in the fourth quarter of 2024 included $5.0 million in acquisition-related expenses. Core net income, a non-GAAP measure[1], was $13.7 million, or $1.36 per diluted share for the three months ended December 31, 2025, and $10.0 million, or $0.99 per diluted share for the comparable three-month period of 2024.

For the year ended December 31, 2025, net income was $59.2 million, or $5.88 per diluted share an increase of $50.7 million compared to $8.5 million, or $0.99 per diluted share for 2024, which was primarily due to a full year of combined operations following the merger with FNCB Bancorp, Inc. ("FNCB" or "FNCB merger") on July 1, 2024, coupled with a reduction in the provision for credit losses. 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, noninterest income and noninterest expense when compared to the prior year. Net income in 2024 included acquisition-related expenses of $16.2 million compared to $0.2 million in 2025, and a non-recurring provision of $14.3 million for non-purchase credit deteriorated ("PDC") loans acquired in the FNCB merger. Core net income, a non-GAAP measure¹ was $61.1 million, or $6.07 per diluted share for the year ended December 31, 2025, and $32.4 million, or $3.77 per diluted share for the year ended December 31, 2024. 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.

"We delivered solid full-year results in 2025, with net income of $59.2 million driven by strong net interest income and a lower provision for credit losses, reflecting the benefits of our expanded balance sheet and disciplined credit performance," said Gerard Champi, Chief Executive Officer of Peoples. "While fourth-quarter earnings were impacted by a strategic $2.2 million pre-tax loss related to the repositioning of our available-for-sale securities portfolio, this action strengthens our balance sheet and positions us well for future periods. Excluding this item, core earnings demonstrated continued momentum, supported by higher earning asset levels, increased transaction activity, and ongoing accretion from the FNCB merger. As we move forward, we remain focused on disciplined growth, operating efficiency, and delivering long-term value for our shareholders," concluded Champi.

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 net gains and losses on the sale of AFS investment securities, 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 and should not be viewed as a substitute for GAAP.

NOTABLES

The Company completed a repositioning of a portion of its investment securities portfolio at the end of the fourth quarter of 2025. As part of the repositioning, the Company sold $78.6 million of lower-yielding, U.S. treasury bonds with a weighted average yield of 1.18%, resulting in an after-tax loss of approximately $1.8 million. The net proceeds of approximately $76.1 million from the sale were used to purchase higher-yielding investment securities that have been classified as AFS including $38.2 million of U.S. agency mortgage-backed securities and $37.9 million of tax-exempt municipal bonds. The purchased securities, which have been classified as AFS, have a weighted average book yield of approximately 4.67%. The Company expects to recover the after-tax loss recorded on the sale within approximately 10 months.
Core net income, a non-GAAP measure¹ was $13.7 million, or $1.36 per diluted share for the three months ended December 31, 2025, and $10.0 million, or $0.99 per diluted share for the comparable three-month period of 2024. For the year ended December 31, 2025, core net income, a non-GAAP measure¹ was $61.1 million, or $6.07 per diluted share, and $32.4 million, or $3.77 per diluted share for the year ended December 31, 2024.
ROAE for the three months annualized and year ended December 31, 2025, was 9.16% and 11.89% respectively, and 5.07% and 2.07% for the corresponding periods of 2024. Core ROAE, a non-GAAP measure¹ was 10.49% and 12.27% for the three months annualized and year ended December 31, 2025, compared to 8.31% and 7.88% for the corresponding periods of 2024.
ROAA for the three months annualized and year ended December 31, 2025, was 0.92% and 1.17% respectively, and 0.47% and 0.19% for the corresponding periods of 2024. Core ROAA, a non-GAAP measure¹, was 1.05% and 1.21% for the three months annualized and year ended December 31, 2025, compared to 0.76% and 0.72% for the three months annualized and year ended December 31, 2024.
Book value per common share at December 31, 2025, increased to $52.01 from $46.94 at December 31, 2024. Tangible book value per common share, a non-GAAP measure¹, increased to $41.64 at December 31, 2025, compared to $35.88 at December 31, 2024.
Total loans increased $50.5 million or 5.0% annualized during the three months ended December 31, 2025; for the year ended December 31, 2025, total loans increased $73.4 million, or 1.8% to $4.1 billion.
Non-performing assets to total assets improved to 0.23% at December 31, 2025, compared to 0.45% at December 31, 2024, and non-performing assets to total loans, net and foreclosed assets improved to 0.30% at December 31, 2025, compared to 0.58% at December 31, 2024.

INCOME STATEMENT REVIEW

Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure¹, for the three months ended December 31, 2025, improved 35 basis points to 3.60% compared to 3.25% for the three months ended December 31, 2024. For the full year, the FTE NIM expanded 74 basis points to 3.58% in 2025 compared to 2.84% in 2024.
The FTE yield on interest-earning assets, a non-GAAP measure[2], increased 5 basis points to 5.56% for the fourth quarter of 2025, from 5.51% for the same quarter of 2024, and increased 43 basis points to 5.57% for the year ended December 31, 2025, from 5.14% for the year ended December 31, 2024.
The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 33 basis points to 2.55% for the three months ended December 31, 2025, from 2.88% for the three months ended December 31, 2024, and decreased 34 basis points to 2.59% for the year ended December 31, 2025, from 2.93% for the year ended December 31, 2024.
The cost of interest-bearing deposits decreased 45 basis points for the three months ended December 31, 2025, to 2.30% from 2.75% in the three months ended December 31, 2024, and decreased 43 basis points to 2.39% for the year ended December 31, 2025, from 2.82% for the year ended December 31, 2024.
The cost of total deposits, which includes the impact of noninterest-bearing deposits was 1.82% for the fourth quarter of 2025, a decrease of 38 basis points from 2.20% for the same quarter of 2024. For the full year, the cost of total deposits decreased 40 basis points to 1.89% in 2025 from 2.29% in 2024.
The efficiency ratio, a non-GAAP measure[3], was 59.53% and 56.45% for the three months and year ended December 31, 2025, respectively, compared to 62.67% and 63.83% for the respective periods of 2024.

Fourth Quarter 2025 Results – Comparison to Fourth Quarter 2024

Net interest income on a FTE basis for the three months ended December 31, 2025, increased $4.5 million to $43.7 million from $39.2 million for the three months ended December 31, 2024. The increase in FTE net interest income was due to a $0.9 million increase in tax-equivalent interest income, a non-GAAP measure¹, coupled with a $3.6 million decrease in interest expense.

The $0.9 million increase in FTE interest income was largely due to an increase in the FTE yield on earning assets, primarily taxable loans and taxable and tax-exempt investments, coupled with an increase in total average earning assets. The FTE yield on earning assets increased 5 basis points to 5.56% for the fourth quarter of 2025 from 5.51% for the comparable quarter of 2024. The yield on taxable loans increased 15 basis points to 6.19% from 6.04% comparing the fourth quarters of 2025 and 2024, respectively. The yield on the total investment securities portfolio increased 17 basis points to 3.27% for the three months ended December 31, 2025, from 3.10% for the same three months of 2024 as new purchases were added at yields higher than existing portfolio yields. Total average earning assets increased $2.2 million comparing the fourth quarters of 2025 and 2024, due primarily to increases in average investments and federal funds sold, partially offset by a reduction in average loans. Accretion associated with purchase accounting fair value discounts on purchased loans was $4.1 million for the three months ended December 31, 2025, and $4.4 million for the same period of 2024. Average investments totaled $643.1 million in the three months ended December 31, 2025, and $628.9 million in the three months ended December 31, 2024, an increase of $14.2 million. Average federal funds sold increased $5.2 million to $134.7 million for the three months ended December 31, 2025, from $129.5 million for the three months ended December 31, 2024. Average loans, net, decreased $17.8 million for the three months ended December 31, 2025, compared to the prior year three-month period ended December 31, 2024.

The decrease in interest expense, comparing the three month periods ended December 31, 2025, and December 31, 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 in the amount of $52.0 million. Average interest-bearing deposits decreased $153.4 million to $3.4 billion, or 78.9% of total average deposits for the three months ended December 31, 2025, from $3.6 billion, or 79.8% of average total deposits, for the three months ended December 31, 2024. Average brokered deposits decreased $140.0 million to $158.5 million for the three months ended December 31, 2025, from $298.5 million for the comparable three-month period of 2024. Average noninterest bearing deposits increased $9.7 million to $914.0 million, or 21.1% of total average deposits for the three months ended December 31, 2025, from $904.3 million, or 20.2% of total average deposits for the three months ended December 31, 2024.

Average total borrowings increased $77.1 million for the three months ended December 31, 2025, as compared to the same period of 2024, which was primarily due to a combination of increases in long-term borrowings and the new issuance of subordinated debt, which occurred in the second quarter of 2025. Additionally, the Company's cost of borrowings increased 42 basis points to 5.77% for the three months ended December 31, 2025, compared to 5.35% for the same three months of 2024. In June 2025, the Company called and redeemed $33.0 million of its subordinated notes due in June 2030 that repriced to 9.08% and issued $85.0 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 $31.8 million for the three-month period ended December 31, 2025, at an average cost of 3.87% compared to $39.3 million at an average cost of 4.80% for the comparable three-month period in 2024. Long-term debt, which includes term borrowings from the FHLB of Pittsburgh, averaged $145.4 million for the three-month period ended December 31, 2025, at an average cost of 4.54% compared to $111.1 million at an average cost of 4.97% for the three months ended December 31, 2024. Subordinated debt averaged $83.1 million for the three-month period ended December 31, 2025, at an average cost of 8.35% compared to $33.0 million at an average cost of 5.35% for the three months ended December 31, 2024.

For the three months ended December 31, 2025, the provision for credit losses was $1.0 million, a decrease of $2.4 million from the $3.4 million recorded in the year ago period. The decrease was due primarily to downward adjustments to qualitative factors on pooled loans, partially offset by an increase of $384 thousand in specific reserves on individually evaluated loans, while model loss rates were substantially unchanged.

Noninterest income was $3.7 million and $5.5 million for the three months ended December 31, 2025, and 2024, respectively. The quarter ended December 31, 2025 includes a $2.2 million loss on the sale of AFS treasury securities as part of a strategy to restructure the portfolio with higher-yielding securities. Interest rate swap income increased to $0.7 million from $0.3 million due to increased commercial loan volume.

Noninterest expense decreased $3.8 million to $31.1 million for the three months ended December 31, 2025, from $34.8 million for the three months ended December 31, 2024, which primarily reflected the absence of acquisition related expenses, partially offset by increased occupancy and equipment expenses due to the corporate office relocation and higher maintenance costs, and increased professional services including loan review services for a larger combined loan portfolio and consulting services related to SOX control enhancement, process improvement and implementation of a new on-line account opening platform. Acquisition-related expenses were $5.0 million in the quarter ended December 31, 2024, with no comparable expenses in the quarter ended December 31, 2025. Occupancy and equipment expenses were $7.3 million for the three months ended December 31, 2025, and $6.4 million for the same three months of 2024. Professional services totaled $1.9 million for the three months ended December 31, 2025, and $0.8 million for the same three months of 2024.

Income tax expense was $2.7 million for the three months ended December 31, 2025, compared to a benefit of $0.3 million for the three months ended December 31, 2024. The effective tax rate was 18.6% for the three months ended December 31, 2025, while the prior year's quarter resulted in a tax benefit rate of 4.7%.

Full Year Results – 2025 vs. 2024

Net interest income for the year ended December 31, 2025, increased $50.0 million to $166.0 million from $116.0 million for the year ended December 31, 2024. FTE net interest income, a non-GAAP measure[4], for year ended December 31, 2025, increased $50.3 million to $168.7 million from $118.4 million for the year ended December 31, 2024.

Tax-equivalent interest income, a non-GAAP measure¹, increased $48.7 million to $262.5 million in 2025 from $213.8 million in 2024, due to higher levels of interest-earning assets such as loans and investments and an additional $7.2 million from accretion of purchase accounting marks on acquired loans. Average loans increased $541.4 million and average investments increased $24.1 million comparing the years ended December 31, 2025, and 2024. The tax-equivalent yield on interest-earning assets, a non-GAAP measure¹, was 5.57% for the year ended December 31, 2025, compared to 5.14% for the year ended December 31, 2024. Loan yields increased 37 basis points to 5.99% while investment yields increased 72 basis points to 3.15% for the year ended December 31, 2025. Average federal funds sold decreased $20.2 million to $58.5 million for the year ended December 31, 2025, from $78.7 million for the same period of 2024. Additionally, the average rate on federal funds sold decreased 111 basis points reflecting the 75-basis point cut to the federal funds rate by the Federal Open Market Committee in 2025.

Interest expense decreased $1.7 million to $93.7 million for the year ended December 31, 2025, from $95.5 million for the year ended December 31, 2024, which was primarily driven by a reduction in funding costs that outweighed increases to average balances. Average interest-bearing liabilities increased $354.8 million to $3.6 billion from $3.3 billion comparing the years ended December 31, 2025, and 2024, which reflected higher volumes of both deposits and borrowings. The cost of interest-bearing liabilities during the year ended December 31, 2025, decreased 34 basis points to 2.59% from 2.93% for the year ended December 31, 2024. The cost of interest-bearing deposit products decreased 43 basis points to 2.39% for the year ended December 31, 2025, from 2.82% for the prior year, while borrowing costs increased 42 basis points to 5.71% from 5.29% for the year ended December 31, 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 year ended December 31, 2025, a provision for credit losses of $98 thousand was recorded compared to a prior year provision of $19.1 million. The prior year provision included a non-recurring, Day 1 provision of $14.3 million for non-PCD loans acquired in the FNCB merger. The 2025 provision was due primarily to improvement in qualitative factors driven by a reduction in commercial real estate concentration levels and a seasoning of the equipment financing portfolio, while overall model loss rates were substantially unchanged. Specific reserves on individually evaluated loans increased $384 thousand.

Noninterest income was $21.7 million for the year ended December 31, 2025, and $18.3 million for the year ended December 31, 2024. The increase in non-interest income was primarily attributable to the increased size and scale of the Company following the FNCB merger. Comparing the years ended December 31, 2025, and 2024, service charges and fees increased $2.9 million, wealth management income increased $0.8 million, income from interest rate swap transactions increased $0.8 million, bank owned life insurance cash surrender value increased $0.5 million and merchant services income increased $0.4 million. Partially offsetting the increases was the net loss on the sale of AFS investment securities of $2.2 million resulting from the Company's partial investment portfolio repositioning.

Noninterest expense for the year ended December 31, 2025, was $115.4 million, an increase of $8.7 million from $106.7 million for the year ended December 31, 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 $10.6 million compared to 2024 due to the addition of staff associated with the FNCB merger. Occupancy and equipment expenses were higher by $5.2 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 $3.0 million in the year ended December 31, 2025, on the amortization of merger-related intangibles, primarily core deposit intangibles. Partially offsetting these increases was a decrease of $16.0 million in merger-related expenses to $0.2 million for the year ended December 31, 2025. The efficiency ratio, a non-GAAP measure[5], improved to 56.45% for the year ended December 31, 2025, compared to 63.83% for the year ended December 31, 2024.

The provision for income taxes for the year ended December 31, 2025, totaled $13.0 million and the effective tax rate was 18.1% as compared to a tax benefit of $30 thousand, or 0.4% for the year ended December 31, 2024.

BALANCE SHEET REVIEW

At December 31, 2025, total assets, loans, and deposits were $5.3 billion, $4.1 billion, and $4.4 billion, respectively.

Total loans, which were $4.1 billion at December 31, 2025, increased $73.4 million as compared to December 31, 2024. Increases in commercial loans, commercial and residential real estate loans, and consumer loans were partially offset by reductions to equipment financing, and indirect auto loans.

Total investments were $587.2 million at December 31, 2025, compared to $606.9 million at December 31, 2024. At December 31, 2025, AFS securities totaled $512.6 million and the held to maturity securities totaled $72.0 million. The unrealized loss on AFS securities decreased $19.9 million from $49.0 million at December 31, 2024, to $29.1 million at December 31, 2025. The unrealized losses on the held to maturity portfolio totaled $9.2 million and $13.0 million at December 31, 2025, and December 31, 2024, respectively.

Total deposits increased $26.5 million to $4.4 billion at December 31, 2025. Noninterest-bearing deposits increased $19.0 million to $954.5 million at December 31, 2025, from $935.5 million at December 31, 2024. Interest-bearing deposits increased $7.5 million comparing December 31, 2025, and 2024, which largely reflected increases in interest-bearing demand, money market accounts and retail time deposits, partially offset by a reduction in brokered deposits. The Company had $152.2 million and $256.4 million of longer-term brokered CDs at December 31, 2025, and December 31, 2024, respectively. As part of strategic balance sheet management initiatives, the Company reduced its higher rate brokered CD portfolio by $104.2 million during 2025. Total retail deposits, which exclude brokered deposits, increased $130.7 million to $4.3 billion at December 31, 2025, from $4.2 billion at December 31, 2024.

The Company's deposit base is diversified and consisted of 40.6% retail accounts, 35.6% commercial accounts, 20.4% municipal relationships and 3.4% brokered deposits at December 31, 2025. At December 31, 2025, total uninsured deposits were approximately $1.5 billion, or 34.3% of total deposits. Included in the uninsured total at December 31, 2025, were $494.3 million of municipal deposits collateralized by letters of credit issued by the FHLB, and $2.9 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 December 31, 2025, available borrowing capacity totaled $1.0 billion at the FHLB and $349.0 million at the Federal Reserve's Discount Window. At December 31, 2025, the Company had $269.0 million in cash and cash equivalents, an increase of $133.1 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 17.

The Company maintained its well capitalized position at December 31, 2025. Stockholders' equity equaled $519.8 million or $52.01 per share at December 31, 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 and a $16.0 million decrease to accumulated other comprehensive loss ("AOCL") resulting primarily from a reduction in the unrealized loss on AFS securities, partially offset by dividends to shareholders. The net after tax unrealized loss on AFS securities included in AOCL at December 31, 2025, and December 31, 2024, was $22.8 million and $38.3 million, respectively.

Tangible book value, a non-GAAP measure[6], increased to $41.64 per share at December 31, 2025, from $35.88 per share at December 31, 2024. Dividends declared for the year ended December 31, 2025, amounted to $2.47 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 $12.1 million or 0.30% of loans, net, and foreclosed assets at December 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 0.23% at December 31, 2025, compared to 0.45% at December 31, 2024. The reduction in nonperforming assets was largely due to an $11.7 million decrease in nonaccrual loans following the resolution of several large commercial credit relationships. At December 31, 2025, the Company had one foreclosed commercial property recorded at $0.8 million compared to one foreclosed residential property recorded at $27 thousand at December 31, 2024.

During the three months ended December 31, 2025, net charge-offs were $1.8 million and the provision for credit losses was $1.0 million, compared to net charge-offs of $0.9 million and a provision for credit losses of $3.4 million for the same period of 2024. Net charge-offs in the current quarter included a valuation adjustment of $0.8 million related to a commercial property foreclosure. During the year ended December 31, 2025, net charge-offs totaled $2.9 million and the Company recognized a provision for credit losses of $98 thousand. The allowance for credit losses equaled $39.0 million or 0.96% of loans, net, at December 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.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 40 full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lancaster, 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 any 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 use 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)

	Dec 31			Sept 30			June 30			Mar 31			Dec 31
	2025			2025			2025			2025			2024
Key performance data:
Share and per share amounts:
Net income	$	1.19		$	1.51		$	1.68		$	1.49		$	0.61
Core net income (1)	$	1.36		$	1.51		$	1.69		$	1.51		$	0.99
Core net income (PPNR) (1)	$	1.80		$	1.81		$	2.03		$	1.83		$	1.46
Cash dividends declared	$	0.6175		$	0.6175		$	0.6175		$	0.6175		$	0.6175
Book value	$	52.01		$	50.95		$	49.44		$	48.21		$	46.94
Tangible book value (1)	$	41.64		$	40.43		$	38.75		$	37.35		$	35.88
Market value:
High	$	53.22		$	53.69		$	51.21		$	53.70		$	58.76
Low	$	44.54		$	46.90		$	40.67		$	44.47		$	44.73
Closing	$	48.71		$	48.61		$	49.37		$	44.47		$	51.18
Market capitalization	$	486,837		$	485,837		$	493,438		$	444,499		$	511,325
Common shares outstanding		9,994,595			9,994,595			9,994,696			9,995,483			9,990,724
Selected ratios:
Return on average stockholders' equity		9.16	%		12.02	%		13.87	%		12.70	%		5.07	%
Core return on average stockholders' equity (1)		10.49	%		12.03	%		13.92	%		12.80	%		8.31	%
Return on average tangible stockholders' equity (1)		11.47	%		15.24	%		17.73	%		16.46	%		6.62	%
Core return on average tangible stockholders' equity (1)		13.14	%		15.25	%		17.79	%		16.59	%		10.87	%
Return on average assets		0.92	%		1.19	%		1.36	%		1.22	%		0.47	%
Core return on average assets (1)		1.05	%		1.19	%		1.36	%		1.23	%		0.76	%
Stockholders' equity to total assets		9.86	%		9.87	%		9.67	%		9.64	%		9.21	%
Efficiency ratio (1)(2)		59.53	%		56.52	%		53.92	%		55.77	%		62.67	%
Nonperforming assets to loans, net, and foreclosed assets		0.30	%		0.42	%		0.44	%		0.59	%		0.58	%
Nonperforming assets to total assets		0.23	%		0.33	%		0.34	%		0.47	%		0.45	%
Net charge-offs to average loans, net		0.18	%		0.02	%		0.00	%		0.09	%		0.09	%
Allowance for credit losses to loans, net		0.96	%		0.99	%		1.02	%		1.03	%		1.05	%
Interest earning assets yield (FTE) (3)		5.56	%		5.56	%		5.68	%		5.50	%		5.51	%
Cost of funds		2.55	%		2.64	%		2.60	%		2.58	%		2.88	%
Net interest spread (FTE) (3)		3.01	%		2.92	%		3.08	%		2.92	%		2.63	%
Net interest margin (FTE) (1)(3)		3.60	%		3.54	%		3.69	%		3.50	%		3.25	%


(1)	See Reconciliation of Non-GAAP financial measures on pages 19-21.
(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 AFS 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)

	Dec 31		Dec 31
Year ended	2025		2024
Interest income:
Interest and fees on loans:
Taxable	$	228,868	$	184,907
Tax-exempt		8,356		7,354
Interest and dividends on investment securities:
Taxable		17,444		12,930
Tax-exempt		2,040		1,550
Dividends		160		89
Interest on interest-bearing deposits in other banks		405		498
Interest on federal funds sold		2,424		4,132
Total interest income		259,697		211,460
Interest expense:
Interest on deposits		81,174		87,934
Interest on short-term borrowings		1,287		2,031
Interest on long-term debt		5,562		3,317
Interest on subordinated debt		4,967		1,774
Interest on junior subordinated debt		745		415
Total interest expense		93,735		95,471
Net interest income		165,962		115,989
Provision for credit losses		98		19,131
Net interest income after provision for credit losses		165,864		96,858
Noninterest income:
Service charges, fees, commissions and other		13,618		10,673
Merchant services income		1,299		896
Commissions and fees on fiduciary activities		2,267		2,270
Wealth management income		2,958		2,118
Mortgage banking income		549		389
Increase in cash surrender value of life insurance		2,076		1,572
Interest rate swap income		1,107		285
Net gains on equity investments		168		132
Net (losses) gains on sale of investment securities available for sale		(2,241)		1
Net loss on sale of fixed assets		(74)
Total noninterest income		21,727		18,336
Noninterest expense:
Salaries and employee benefits expense		56,341		45,746
Net occupancy and equipment expense		27,448		22,296
Acquisition related expenses		236		16,200
Amortization of intangible assets		6,397		3,367
FDIC insurance and assessments		3,288		3,158
Other expenses		21,647		15,959
Total noninterest expense		115,357		106,726
Income before income taxes		72,234		8,468
Income tax expense (benefit)		13,047		(30)
Net income	$	59,187	$	8,498
Other comprehensive income:
Unrealized gains on investment securities available for sale	$	17,574	$	2,569
Reclassification adjustment for losses (gains) on available for sale securities included in net income		2,241		(1)
Change in pension liability		674		1,518
Change in derivative fair value		(64)		632
Income tax expense related to other comprehensive income		4,421		1,062
Other comprehensive income, net of income tax expense		16,004		3,656
Comprehensive income	$	75,191	$	12,154
Share and per share amounts:
Net income - basic	$	5.92	$	1.00
Net income - diluted		5.88		0.99
Cash dividends declared	$	2.47	$	2.06
Average common shares outstanding - basic		9,994,281		8,531,122
Average common shares outstanding - diluted		10,073,996		8,586,035

Peoples Financial Services Corp. Consolidated Statements of Income (Loss) (Unaudited) (In thousands, except per share data)

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
Three months ended	2025		2025		2025		2025		2024
Interest income:
Interest and fees on loans:
Taxable	$	58,576	$	57,621	$	57,459	$	55,212	$	57,048
Tax-exempt		1,658		2,151		2,302		2,245		2,238
Interest and dividends on investment securities:
Taxable		4,371		4,335		4,604		4,134		4,359
Tax-exempt		708		537		399		396		397
Dividends		32		47		40		41		40
Interest on interest-bearing deposits in other banks		95		101		96		113		113
Interest on federal funds sold		1,332		372		435		285		1,608
Total interest income		66,772		65,164		65,335		62,426		65,803
Interest expense:
Interest on deposits		19,830		20,194		20,303		20,847		24,718
Interest on short-term borrowings		311		341		410		225		474
Interest on long-term debt		1,665		1,509		1,211		1,177		1,389
Interest on subordinated debt		1,750		1,748		1,026		443		444
Interest on junior subordinated debt		182		189		188		186		267
Total interest expense		23,738		23,981		23,138		22,878		27,292
Net interest income		43,034		41,183		42,197		39,548		38,511
Provision (benefit) for credit losses		975		(838)		(239)		200		3,369
Net interest income after provision (benefit) for credit losses		42,059		42,021		42,436		39,348		35,142
Noninterest income:
Service charges, fees, commissions and other		3,164		3,386		3,664		3,404		3,368
Merchant services income		163		321		584		231		298
Commissions and fees on fiduciary activities		560		607		563		537		553
Wealth management income		739		950		619		650		633
Mortgage banking income		162		148		125		114		126
Increase in cash surrender value of life insurance		472		543		535		526		456
Interest rate swap income		718		182		164		43		260
Net gains (losses) on equity investments		125		(21)		(7)		71		(23)
Net (losses) on sale of investment securities available for sale		(2,241)
Net (losses) gains on sale of fixed assets		(139)		(615)				680		(165)
Total noninterest income		3,723		5,501		6,247		6,256		5,506
Noninterest expense:
Salaries and employee benefits expense		14,971		14,128		13,761		13,481		15,287
Net occupancy and equipment expense		7,333		7,221		6,284		6,610		6,386
Acquisition related expenses				16		66		154		4,990
Amortization of intangible assets		1,515		1,515		1,684		1,683		1,702
FDIC insurance and assessments		683		607		976		1,022		1,251
Other expenses		6,562		5,191		5,491		4,403		5,217
Total noninterest expense		31,064		28,678		28,262		27,353		34,833
Income before income taxes		14,718		18,844		20,421		18,251		5,815
Income tax expense (benefit)		2,742		3,598		3,465		3,242		(272)
Net income	$	11,976	$	15,246	$	16,956	$	15,009	$	6,087
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale	$	2,728	$	7,415	$	1,859	$	5,572	$	(10,175)
Reclassification adjustment for gains on available for sale securities included in net income		2,241
Change in benefit plan liabilities		674								1,518
Change in derivative fair value		50		18		16		(148)		817
Income tax expense (benefit) related to other comprehensive income (loss)		1,208		1,621		409		1,183		(1,686)
Other comprehensive income (loss), net of income tax expense (benefit)		4,485		5,812		1,466		4,241		(6,154)
Comprehensive income (loss)	$	16,461	$	21,058	$	18,422	$	19,250	$	(67)
Share and per share amounts:
Net income - basic	$	1.20	$	1.53	$	1.70	$	1.50	$	0.61
Net income - diluted		1.19		1.51		1.68		1.49		0.61
Cash dividends declared	$	0.6175	$	0.6175	$	0.6175	$	0.6175	$	0.6175
Average common shares outstanding - basic		9,994,595		9,994,629		9,994,955		9,992,922		9,994,605
Average common shares outstanding - diluted		10,083,044		10,086,915		10,082,260		10,043,186		10,051,337

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)

	Three Months Ended
	December 31, 2025						December 31, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Earning assets:
Loans:
Taxable	$	3,756,872	$	58,576	6.19	%	$	3,757,273	$	57,048	6.04	%
Tax-exempt		261,029		2,099	3.19			278,429		2,834	4.05
Total loans		4,017,901		60,675	5.99			4,035,702		59,882	5.90
Investments:
Taxable		529,838		4,403	3.30			541,526		4,399	3.23
Tax-exempt		113,302		896	3.14			87,419		502	2.29
Total investments		643,140		5,299	3.27			628,945		4,901	3.10
Interest-bearing deposits		9,683		95	3.89			9,116		113	4.93
Federal funds sold		134,742		1,332	3.92			129,517		1,608	4.94
Total earning assets		4,805,466		67,401	5.56	%		4,803,280		66,504	5.51	%
Less: allowance for credit losses		40,117						39,850
Other assets		414,296						440,029
Total assets	$	5,179,645					$	5,203,459
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts	$	972,871	$	6,780	2.76	%	$	945,644	$	7,526	3.17	%
Interest-bearing demand and NOW accounts		1,248,045		6,520	2.07			1,276,206		7,549	2.35
Savings accounts		495,001		403	0.32			502,028		651	0.52
Time deposits less than $100		316,533		2,670	3.35			497,473		5,428	4.34
Time deposits $100 or more		387,476		3,457	3.54			351,970		3,564	4.03
Total interest-bearing deposits		3,419,926		19,830	2.30			3,573,321		24,718	2.75
Short-term borrowings		31,862		311	3.87			39,319		474	4.80
Long-term debt		145,447		1,665	4.54			111,135		1,389	4.97
Subordinated debt		83,137		1,750	8.35			33,000		444	5.35
Junior subordinated debt		8,125		182	8.89			8,026		267	13.23
Total borrowings		268,571		3,908	5.77			191,480		2,574	5.35
Total interest-bearing liabilities		3,688,497		23,738	2.55	%		3,764,801		27,292	2.88	%
Noninterest-bearing deposits		914,014						904,274
Other liabilities		58,201						56,445
Stockholders' equity		518,933						477,939
Total liabilities and stockholders' equity	$	5,179,645					$	5,203,459
Net interest income/spread			$	43,663	3.01	%			$	39,212	2.63	%
Net interest margin					3.60	%					3.25	%
Tax-equivalent adjustments:
Loans			$	441					$	596
Investments				188						105
Total adjustments			$	629					$	701

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)

	Year Ended
	December 31, 2025						December 31, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Earning assets:
Loans:
Taxable	$	3,724,920	$	228,868	6.14	%	$	3,205,564	$	184,907	5.77	%
Tax-exempt		273,373		10,577	3.87			251,300		9,309	3.70
Total loans		3,998,293		239,445	5.99			3,456,864		194,216	5.62
Investments:
Taxable		544,782		17,604	3.23			529,649		13,019	2.46
Tax-exempt		96,548		2,582	2.67			87,563		1,962	2.24
Total investments		641,330		20,186	3.15			617,212		14,981	2.43
Interest-bearing deposits		9,871		405	4.10			9,434		498	5.28
Federal funds sold		58,542		2,424	4.14			78,698		4,132	5.25
Total earning assets		4,708,036		262,460	5.57	%		4,162,208		213,827	5.14	%
Less: allowance for credit losses		41,399						30,724
Other assets		402,931						362,130
Total assets	$	5,069,568					$	4,493,614
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts	$	958,516	$	27,884	2.91	%	$	621,993	$	29,643	4.77	%
Interest-bearing demand and NOW accounts		1,205,926		25,088	2.08			1,261,095		23,674	1.88
Savings accounts		497,991		1,530	0.31			463,199		4,625	1.00
Time deposits less than $100		371,339		13,812	3.72			480,737		18,124	3.77
Time deposits $100 or more		362,253		12,860	3.55			291,482		11,868	4.07
Total interest-bearing deposits		3,396,025		81,174	2.39			3,118,506		87,934	2.82
Short-term borrowings		29,241		1,287	4.40			37,083		2,031	5.48
Long-term debt		118,612		5,562	4.69			68,441		3,317	4.85
Subordinated debt		63,918		4,967	7.77			33,000		1,774	5.38
Junior subordinated debt		8,087		745	9.21			4,028		415	10.30
Total borrowings		219,858		12,561	5.71			142,552		7,537	5.29
Total interest-bearing liabilities		3,615,883		93,735	2.59	%		3,261,058		95,471	2.93	%
Noninterest-bearing deposits		898,043						714,824
Other liabilities		57,651						106,970
Stockholders' equity		497,991						410,762
Total liabilities and stockholders' equity	$	5,069,568					$	4,493,614
Net interest income/spread			$	168,725	2.98	%			$	118,356	2.21	%
Net interest margin					3.58	%					2.84	%
Tax-equivalent adjustments:
Loans			$	2,221					$	1,955
Investments				542						412
Total adjustments			$	2,763					$	2,367

Peoples Financial Services Corp. Details of Net Interest Income and Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)

	Dec 31			Sept 30			June 30			Mar 31			Dec 31
Three months ended	2025			2025			2025			2025			2024
Net interest income:
Interest income:
Loans, net:
Taxable	$	58,576		$	57,621		$	57,459		$	55,212		$	57,048
Tax-exempt		2,099			2,722			2,914			2,842			2,834
Total loans, net		60,675			60,343			60,373			58,054			59,882
Investments:
Taxable		4,403			4,382			4,644			4,175			4,399
Tax-exempt		896			680			505			501			502
Total investments		5,299			5,062			5,149			4,676			4,901
Interest on interest-bearing balances in other banks		95			101			96			113			113
Federal funds sold		1,332			372			435			285			1,608
Total interest income		67,401			65,878			66,053			63,128			66,504
Interest expense:
Deposits		19,830			20,194			20,303			20,847			24,718
Short-term borrowings		311			341			410			225			474
Long-term debt		1,665			1,509			1,211			1,177			1,389
Subordinated debt		1,750			1,748			1,026			443			444
Junior subordinated debt		182			189			188			186			267
Total interest expense		23,738			23,981			23,138			22,878			27,292
Net interest income	$	43,663		$	41,897		$	42,915		$	40,250		$	39,212
Loans, net:
Taxable		6.19	%		6.12	%		6.22	%		6.05	%		6.04	%
Tax-exempt		3.19	%		4.00	%		4.14	%		4.11	%		4.05	%
Total loans, net		5.99	%		5.98	%		6.07	%		5.92	%		5.90	%
Investments:
Taxable		3.30	%		3.14	%		3.45	%		3.05	%		3.23	%
Tax-exempt		3.14	%		2.74	%		2.33	%		2.33	%		2.29	%
Total investments		3.27	%		3.08	%		3.29	%		2.95	%		3.10	%
Interest-bearing balances with banks		3.89	%		4.24	%		4.19	%		4.09	%		4.93	%
Federal funds sold		3.92	%		4.41	%		4.46	%		4.45	%		4.94	%
Total interest-earning assets		5.56	%		5.56	%		5.68	%		5.50	%		5.51	%
Interest expense:
Deposits		2.30	%		2.39	%		2.41	%		2.46	%		2.75	%
Short-term borrowings		3.87	%		4.63	%		4.62	%		4.52	%		4.80	%
Long-term debt		4.54	%		4.62	%		4.81	%		4.88	%		4.97	%
Subordinated debt		8.35	%		8.34	%		7.40	%		5.44	%		5.35	%
Junior subordinated debt		8.89	%		9.26	%		9.34	%		9.37	%		13.23	%
Total interest-bearing liabilities		2.55	%		2.64	%		2.60	%		2.58	%		2.88	%
Net interest spread		3.01	%		2.92	%		3.08	%		2.92	%		2.63	%
Net interest margin		3.60	%		3.54	%		3.69	%		3.50	%		3.25	%

Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands)

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
At period end	2025		2025		2025		2025		2024
Assets:
Cash and due from banks	$	58,420	$	62,133	$	60,173	$	60,125	$	47,029
Interest-bearing balances in other banks		9,321		9,492		9,646		9,196		8,593
Federal funds sold		201,243		108,298		105,920		7,781		80,229
Investment securities:
Available for sale		512,563		534,521		505,181		503,043		526,329
Held to maturity		72,047		73,286		75,137		76,689		78,184
Equity investments carried at fair value		2,598		2,473		2,494		2,500		2,430
Total investments		587,208		610,280		582,812		582,232		606,943
Loans held for sale		805		816		547		420
Loans		4,066,896		4,016,367		3,997,525		3,991,539		3,993,505
Less: allowance for credit losses		39,007		39,843		40,890		41,054		41,776
Net loans		4,027,889		3,976,524		3,956,635		3,950,485		3,951,729
Goodwill		75,986		75,986		75,986		75,986		75,986
Premises and equipment, net		78,496		77,009		76,896		72,492		73,283
Bank owned life insurance		88,645		88,175		87,635		87,953		87,429
Deferred tax assets		26,555		30,025		31,647		32,628		35,688
Accrued interest receivable		17,633		16,995		15,854		16,436		15,632
Other intangible assets, net		27,700		29,239		30,778		32,488		34,197
Other assets		70,677		74,664		73,350		71,136		74,919
Total assets	$	5,270,578	$	5,159,636	$	5,107,879	$	4,999,358	$	5,091,657
Liabilities:
Deposits:
Noninterest-bearing	$	954,485	$	912,044	$	899,597	$	901,398	$	935,516
Interest-bearing		3,479,584		3,377,687		3,387,752		3,415,529		3,472,036
Total deposits		4,434,069		4,289,731		4,287,349		4,316,927		4,407,552
Short-term borrowings		32,721		76,310		76,340		14,840		15,900
Long-term debt		134,352		137,029		103,449		88,403		98,637
Subordinated debt		83,187		83,111		83,164		33,000		33,000
Junior subordinated debt		8,140		8,114		8,088		8,063		8,039
Accrued interest payable		6,792		7,976		4,640		5,439		5,503
Other liabilities		51,470		48,105		50,753		50,832		54,076
Total liabilities		4,750,731		4,650,376		4,613,783		4,517,504		4,622,707
Stockholders' equity:
Common stock		20,015		20,015		20,015		20,014		19,995
Capital surplus		251,023		250,735		250,468		250,488		250,695
Retained earnings		273,500		267,686		258,601		247,806		238,955
Accumulated other comprehensive loss		(24,691)		(29,176)		(34,988)		(36,454)		(40,695)
Total stockholders' equity		519,847		509,260		494,096		481,854		468,950
Total liabilities and stockholders' equity	$	5,270,578	$	5,159,636	$	5,107,879	$	4,999,358	$	5,091,657

Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands)

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
At period end	2025		2025		2025		2025		2024
Commercial
Taxable	$	596,422	$	597,163	$	595,042	$	570,966	$	556,630
Non-taxable		257,657		263,921		278,026		282,031		279,390
Total		854,079		861,084		873,068		852,997		836,020
Real estate
Commercial real estate		2,330,282		2,278,745		2,252,574		2,275,241		2,294,113
Residential		602,309		588,520		573,864		560,067		551,383
Total		2,932,591		2,867,265		2,826,438		2,835,308		2,845,496
Consumer
Indirect Auto		93,742		100,298		104,618		108,819		117,914
Consumer Other		17,496		14,212		13,929		14,209		14,955
Total		111,238		114,510		118,547		123,028		132,869
Equipment Financing		168,988		173,508		179,472		180,206		179,120
Total	$	4,066,896	$	4,016,367	$	3,997,525	$	3,991,539	$	3,993,505

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
At period end	2025		2025		2025		2025		2024
Nonperforming assets:
Nonaccrual/restructured loans	$	10,796	$	14,386	$	17,390	$	23,002	$	22,499
Accruing loans past due 90 days or more		524		886		72		655		458
Foreclosed assets		750		1,541				27		27
Total nonperforming assets	$	12,070	$	16,813	$	17,462	$	23,684	$	22,984

		Dec 31		Sept 30		June 30		Mar 31		Dec 31
Three months ended		2025		2025		2025		2025		2024
Allowance for credit losses:
Beginning balance	$	39,843	$	40,890	$	41,054	$	41,776	$	39,341
Charge-offs		1,960		489		1,151		1,233		1,108
Recoveries		149		280		1,226		311		174
Provision (benefit) for credit losses		975		(838)		(239)		200		3,369
Ending balance	$	39,007	$	39,843	$	40,890	$	41,054	$	41,776

Peoples Financial Services Corp. Deposit and Liquidity Detail (Unaudited) (In thousands)

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
At period end	2025		2025		2025		2025		2024
Interest-bearing deposits:
Money market accounts	$	989,230	$	1,026,725	$	971,136	$	967,661	$	936,239
Interest-bearing demand and NOW accounts		1,285,767		1,186,342		1,200,911		1,177,507		1,238,853
Savings accounts		497,523		493,957		500,680		502,851		492,180
Time deposits less than $250		477,115		497,131		543,257		599,127		620,725
Time deposits $250 or more		229,949		173,532		171,768		168,383		184,039
Total interest-bearing deposits		3,479,584		3,377,687		3,387,752		3,415,529		3,472,036
Noninterest-bearing deposits		954,485		912,044		899,597		901,398		935,516
Total deposits	$	4,434,069	$	4,289,731	$	4,287,349	$	4,316,927	$	4,407,552

		December 31, 2025
At period end		Amount	Percent of Total		Number of accounts		Average Balance
Deposit Detail:
Retail	$	1,797,539	40.6	%	94,166	$	19
Commercial		1,579,584	35.6		18,474		86
Municipal		904,725	20.4		2,531		357
Brokered		152,221	3.4		13		11,709
Total Deposits	$	4,434,069	100.0	%	115,184	$	38

Uninsured	$	1,519,528	34.3	%
Insured		2,914,541	65.7

		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 December 31, 2025		Total Available		Outstanding		for Future Liquidity
FHLB advances (1)	$	1,692,839	$	658,587	$	1,034,252
Federal Reserve - Discount Window		348,996				348,996
Correspondent bank lines of credit		27,000				27,000
Other sources of liquidity:
Brokered deposits		790,587		152,221		638,366
Unencumbered securities		221,170				221,170
Total sources of liquidity	$	3,080,592	$	810,808	$	2,269,784

(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)

	Dec 31		Sept 30		June 30		Mar 31		Dec 31
Average quarterly balances	2025		2025		2025		2025		2024
Assets:
Loans, net:
Taxable	$	3,756,872	$	3,736,269	$	3,707,650	$	3,698,124	$	3,757,273
Tax-exempt		261,029		269,757		282,406		280,555		278,429
Total loans, net		4,017,901		4,006,026		3,990,056		3,978,679		4,035,702
Investments:
Taxable		529,838		553,151		540,424		555,910		541,526
Tax-exempt		113,302		98,608		86,899		87,072		87,419
Total investments		643,140		651,759		627,323		642,982		628,945
Interest-bearing balances with banks		9,683		9,441		9,186		11,197		9,116
Federal funds sold		134,742		33,443		39,084		25,979		129,517
Total interest-earning assets		4,805,466		4,700,669		4,665,649		4,658,837		4,803,280
Other assets		374,179		366,809		348,685		349,840		400,179
Total assets	$	5,179,645	$	5,067,478	$	5,014,334	$	5,008,677	$	5,203,459
Liabilities and stockholders' equity:
Deposits:
Interest-bearing	$	3,419,926	$	3,353,559	$	3,373,916	$	3,437,355	$	3,573,321
Noninterest-bearing		914,014		905,385		897,212		875,053		904,274
Total deposits		4,333,940		4,258,944		4,271,128		4,312,408		4,477,595
Short-term borrowings		31,862		29,208		35,587		20,176		39,319
Long-term debt		145,447		129,524		101,066		97,769		111,135
Subordinated debt		83,137		83,149		55,622		33,000		33,000
Junior subordinated debt		8,125		8,098		8,075		8,050		8,026
Other liabilities		58,201		55,530		52,608		58,018		56,445
Total liabilities		4,660,712		4,564,453		4,524,086		4,529,421		4,725,520
Stockholders' equity		518,933		503,025		490,248		479,256		477,939
Total liabilities and stockholders' equity	$	5,179,645	$	5,067,478	$	5,014,334	$	5,008,677	$	5,203,459

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)

	Dec 31			Sept 30			June 30			Mar 31			Dec 31
Three months ended	2025			2025			2025			2025			2024
Core net income per share:
Net income GAAP	$	11,976		$	15,246		$	16,956		$	15,009		$	6,087
Adjustments:
Less: (Loss) on sale of available for sale securities		(2,241)
Add: (Loss) on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses					16			66			154			4,990
Less: Acquisition related expenses tax adjustment					3			14			34			1,089
Core net income	$	13,726		$	15,259		$	17,008		$	15,129		$	9,988
Average common shares outstanding - diluted		10,083,044			10,086,915			10,082,260			10,043,186			10,051,337
Core net income per diluted share	$	1.36		$	1.51		$	1.69		$	1.51		$	0.99

Tangible book value:
Total stockholders' equity	$	519,847		$	509,260		$	494,096		$	481,854		$	468,950
Less: Goodwill		75,986			75,986			75,986			75,986			76,325
Less: Other intangible assets, net		27,700			29,239			30,778			32,488			34,197
Total tangible stockholders' equity	$	416,161		$	404,035		$	387,332		$	373,380		$	358,428
Common shares outstanding		9,994,595			9,994,595			9,994,696			9,995,483			9,990,724
Tangible book value per share	$	41.64		$	40.43		$	38.75		$	37.35		$	35.88

Core return on average stockholders' equity:
Net income GAAP	$	11,976		$	15,246		$	16,956		$	15,009		$	6,087
Adjustments:
Less: (Loss) on sale of available for sale securities		(2,241)
Add: (Loss) on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses					16			66			154			4,990
Less: Acquisition related expenses tax adjustment					3			14			34			1,089
Core net income	$	13,726		$	15,259		$	17,008		$	15,129		$	9,988
Average stockholders' equity	$	518,933		$	503,025		$	490,248		$	479,256		$	477,939
Core return on average stockholders' equity		10.49	%		12.03	%		13.92	%		12.80	%		8.31	%

Return on average tangible stockholders' equity:
Net income GAAP	$	11,976		$	15,246		$	16,956		$	15,009		$	6,087
Average stockholders' equity	$	518,933		$	503,025		$	490,248		$	479,256		$	477,939
Less: average intangibles		104,550			106,111			106,764			109,386			112,399
Average tangible stockholders' equity	$	414,383		$	396,914		$	383,484		$	369,870		$	365,540
Return on average tangible stockholders' equity		11.47	%		15.24	%		17.73	%		16.46	%		6.62	%

Core return on average tangible stockholders' equity:
Net income GAAP	$	11,976		$	15,246		$	16,956		$	15,009		$	6,087
Adjustments:
Less: (Loss) on sale of available for sale securities		(2,241)
Add: (Loss) on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses					16			66			154			4,990
Less: Acquisition related expenses tax adjustment					3			14			34			1,089
Core net income	$	13,726		$	15,259		$	17,008		$	15,129		$	9,988
Average stockholders' equity	$	518,933		$	503,025		$	490,248		$	479,256		$	477,939
Less: average intangibles		104,550			106,111			106,764			109,386			112,399
Average tangible stockholders' equity	$	414,383		$	396,914		$	383,484		$	369,870		$	365,540
Core return on average tangible stockholders' equity		13.14	%		15.25	%		17.79	%		16.59	%		10.87	%

Core return on average assets:
Net income GAAP	$	11,976		$	15,246		$	16,956		$	15,009		$	6,087
Adjustments:
Less: (Loss) on sale of available for sale securities		(2,241)
Add: (Loss) on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses					16			66			154			4,990
Less: Acquisition related expenses tax adjustment					3			14			34			1,089
Core net income	$	13,726		$	15,259		$	17,008		$	15,129		$	9,988
Average assets	$	5,179,645		$	5,067,478		$	5,014,334		$	5,008,677		$	5,203,459
Core return on average assets		1.05	%		1.19	%		1.36	%		1.23	%		0.76	%

Pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)	$	14,718		$	18,844		$	20,421		$	18,251		$	5,815
Add: Provision (benefit) for credit losses		975			(838)			(239)			200			3,369
Add: Provision (benefit) for credit losses on unfunded commitments		204			252			172			(202)			452
PPNR (non-GAAP)	$	15,897		$	18,258		$	20,354		$	18,249		$	9,636
Average common shares outstanding-diluted		10,083,044			10,086,915			10,082,260			10,043,186			10,051,337
PPNR per share (non-GAAP)	$	1.58		$	1.81		$	2.02		$	1.82		$	0.96

Core pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)	$	14,718		$	18,844		$	20,421		$	18,251		$	5,815
Add: Acquisition related expenses					16			66			154			4,990
Less: (Loss) on sale of available for sale securities		(2,241)
Add: Provision (benefit) for credit losses		975			(838)			(239)			200			3,369
Add: Provision (benefit) for credit losses on unfunded commitments		204			252			172			(202)			452
Core PPNR (non-GAAP)	$	18,138		$	18,274		$	20,420		$	18,403		$	14,626
Average common shares outstanding-diluted		10,083,044			10,086,915			10,082,260			10,043,186			10,051,337
Core PPNR per share (non-GAAP)	$	1.80		$	1.81		$	2.03		$	1.83		$	1.46

(1) Tax adjustments are calculated using the effective tax rate for the respective period.

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)

	Dec 31			Dec 31
Year ended	2025			2024
Core net income per share:
Net income GAAP	$	59,187		$	8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment					3,126
Less: (Loss) gain on sale of available for sale securities		(2,241)			1
Add: (Loss) gain on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses		236			16,200
Less: Acquisition related expenses tax adjustment		52			3,534
Core net income	$	61,121		$	32,365
Average common shares outstanding - diluted		10,073,996			8,586,035
Core net income per diluted share	$	6.07		$	3.77

Core return on average stockholders' equity:
Net income GAAP	$	59,187		$	8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment					3,126
Less: (Loss) gain on sale of available for sale securities		(2,241)			1
Add: (Loss) gain on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses		236			16,200
Less: Acquisition related expenses tax adjustment		52			3,534
Core net income	$	61,121		$	32,365
Average stockholders' equity		497,991			410,762
Core return on average stockholders' equity		12.27	%		7.88	%

Return on average tangible stockholders' equity:
Net income GAAP	$	59,187		$	8,498
Average stockholders' equity		497,991			410,762
Less: average intangibles		106,933			88,043
Average tangible stockholders' equity	$	391,058		$	322,719
Return on average tangible stockholders' equity		15.14	%		2.63	%

Core return on average tangible stockholders' equity:
Net income GAAP	$	59,187		$	8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment					3,126
Less: (Loss) gain on sale of available for sale securities		(2,241)			1
Add: (Loss) gain on sale of available for sale securities tax adjustment		(491)
Add: Acquisition related expenses		236			16,200
Less: Acquisition related expenses tax adjustment		52			3,534
Core net income	$	61,121		$	32,365
Average stockholders' equity		497,991			410,762
Less: average intangibles		106,933			88,043
Average tangible stockholders' equity	$	391,058		$	322,719
Core return on average tangible stockholders' equity		15.63	%		10.03	%

Core return on average assets:
Net income GAAP	$	59,187		$	8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment					3,126
Less: (Loss) gain on sale of available for sale securities		(2,241)			1
Add: (Loss) gain on sale of available for sale securities tax adjustment		(491)			—
Add: Acquisition related expenses		236			16,200
Less: Acquisition related expenses tax adjustment		52			3,534
Core net income	$	61,121		$	32,365
Average assets		5,069,568			4,493,614
Core return on average assets		1.21	%		0.72	%

Pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)	$	72,234		$	8,468
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment					3,126
Add: Provision for credit losses		98			4,803
Add: Provision (benefit) for credit losses on unfunded commitments		426			(43)
PPNR (non-GAAP)	$	72,758		$	24,516
Average common shares outstanding-diluted		10,073,996			8,586,035
PPNR per share (non-GAAP)	$	7.22		$	2.86

Core pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)	$	72,234		$	8,468
Add: ACL provision for FNCB acquired legacy loans					14,328
Less: (Loss) gain on sale of available for sale securities		(2,241)			1
Add: Acquisition related expenses		236			16,200
Add: Provision for credit losses		98			4,803
Add: Provision (benefit) for credit losses on unfunded commitments		426			(43)
Core PPNR (non-GAAP)	$	75,235		$	43,755
Average common shares outstanding-diluted		10,073,996			8,586,035
Core PPNR per share (non-GAAP)	$	7.47		$	5.10

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 and year ended December 31, 2025, and 2024:

Three months ended December 31	2025		2024
Interest income (GAAP)	$	66,772	$	65,803
Adjustment to FTE		629		701
Interest income adjusted to FTE (non-GAAP)		67,401		66,504
Interest expense		23,738		27,292
Net interest income adjusted to FTE (non-GAAP)	$	43,663	$	39,212

Year ended December 31	2025		2024
Interest income (GAAP)	$	259,697	$	211,460
Adjustment to FTE		2,763		2,367
Interest income adjusted to FTE (non-GAAP)		262,460		213,827
Interest expense		93,735		95,471
Net interest income adjusted to FTE (non-GAAP)	$	168,725	$	118,356

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 and year ended December 31, 2025, and 2024:

Three months ended December 31	2025			2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)	$	31,064		$	34,833
Less: Amortization of intangible assets expense		1,515			1,702
Less: Acquisition related expenses					4,990
Noninterest expense (non-GAAP)		29,549			28,141

Net interest income (GAAP)		43,034			38,511
Plus: Taxable equivalent adjustment		629			701
Noninterest income (GAAP)		3,723			5,506
Less: Net gains (losses) on equity securities		125			(23)
Less: Net losses on sale of investment securities available for sale		(2,241)
Less: (Losses) on sale of fixed assets		(139)			(165)
Net interest income (FTE) plus noninterest income (non-GAAP)	$	49,641		$	44,906
Efficiency ratio (non-GAAP)		59.53	%		62.67	%

Year ended December 31	2025			2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)	$	115,357		$	106,726
Less: Amortization of intangible assets expense		6,397			3,367
Less: Acquisition related expenses		236			16,200
Noninterest expense (non-GAAP)		108,724			87,159

Net interest income (GAAP)		165,962			115,989
Plus: Taxable equivalent adjustment		2,763			2,367
Noninterest income (GAAP)		21,727			18,336
Less: Net gains on equity securities		168			132
Less: (Losses) gains on sale of available for sale securities		(2,241)			1
Less: (Losses) on sale of fixed assets		(74)
Net interest income (FTE) plus noninterest income (non-GAAP)	$	192,599		$	136,559
Efficiency ratio (non-GAAP)		56.45	%		63.83	%

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SOURCE Peoples Financial Services Corp.

FAQ

What were Peoples Financial (PFIS) Q4 2025 earnings and EPS?

Peoples reported $12.0 million net income and $1.19 diluted EPS for Q4 2025. According to the company, core net income for the quarter was $13.7 million, excluding a strategic $2.2 million pre-tax securities sale loss.

How did Peoples Financial (PFIS) perform for full-year 2025?

For full-year 2025, Peoples reported $59.2 million net income and $5.88 diluted EPS. According to the company, performance benefited from higher earning assets, merger accretion, and a lower provision for credit losses.

Why did PFIS record a loss on investment securities in Q4 2025?

PFIS recorded a $2.2 million pre-tax loss after selling lower-yielding treasuries to reposition its portfolio. According to the company, proceeds funded higher-yielding AFS purchases expected to recover the loss within ~10 months.

What happened to Peoples Financial's net interest margin (NIM) in 2025?

NIM improved to 3.60% in Q4 2025 and FTE NIM averaged 3.58% for 2025. According to the company, NIM expansion reflected higher yields on earning assets and lower cost of deposits.

How did the FNCB merger affect PFIS 2025 results?

The FNCB merger contributed to a larger balance sheet and purchase accounting accretion boosting 2025 results. According to the company, the combined operations and accretion materially increased net interest income and core earnings.

PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Fourth Quarter and Full Year 2025 Earnings