PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Second Quarter and Year to Date 2026 Earnings

Rhea-AI Summary

Peoples Financial Services (NASDAQ: PFIS) reported unaudited results for the three and six months ended June 30, 2026. Second-quarter 2026 net income was $14.8 million, or $1.48 per diluted share, down from $17.0 million, or $1.68, a year earlier. Six‑month net income was $29.6 million, or $2.95 per diluted share, versus $32.0 million, or $3.18, in 2025. Annualized ROAA for the quarter was 1.13% and ROAE 11.10%, both below prior‑year levels.

According to Peoples, lower earnings primarily reflected a higher provision for credit losses tied to strong loan growth, along with higher noninterest and income tax expense, partly offset by higher net interest and noninterest income. Total loans reached $4.3 billion, up $112.6 million from March 31, 2026 and $305.3 million year over year. Total deposits rose to $4.5 billion, up $83.5 million sequentially and $221.5 million year over year. Book value per share increased to $53.56 and tangible book value per share to $43.51 versus June 30, 2025. The fully tax‑equivalent net interest margin improved to 3.82% in the quarter, while the efficiency ratio was 55.16%.

Positive

• Loan growth to $4.3 billion, up $305.3 million year over year
• Deposit growth to $4.5 billion, up $221.5 million year over year
• Net interest income up $3.4 million versus Q2 2025 to $45.6 million
• FTE net interest margin increased to 3.82% in Q2 2026, up 15 bps sequentially
• Book value per share up to $53.56 from $49.44 year over year
• Tangible book value per share up to $43.51 from $38.75 year over year

Negative

• Quarterly net income declined $2.2 million year over year to $14.8 million
• Six‑month net income declined $2.4 million year over year to $29.6 million
• Provision for credit losses rose to $3.1 million in Q2 2026 from a $0.2 million benefit
• Year‑to‑date credit loss provision increased to $4.5 million from a $39 thousand benefit
• Noninterest expense rose $2.3 million year over year in Q2 2026 to $30.6 million
• Efficiency ratio worsened year over year to 55.16% from 53.92% in Q2

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MOOSIC, Pa., July 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 and six months ended June 30, 2026.  

Peoples reported net income of $14.8 million, or $1.48 per diluted share for the three months ended June 30, 2026, a decrease of $2.2 million compared to net income of $17.0 million, or $1.68 per diluted share for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026 totaled $29.6 million, or $2.95 per diluted share, a decrease of $2.4 million, compared to $32.0 million, or $3.18 per diluted share for the same six months of 2025. Return on average assets ("ROAA") and return on average equity ("ROAE") on an annualized basis for the three months ended June 30, 2026, was 1.13% and 11.10% compared to 1.36% and 13.87% for the three months ended June 30, 2025. For the six months ended June 30, annualized ROAA and ROAE were 1.14% and 11.18%, respectively, in 2026 compared to 1.29% and 13.30%, respectively, in 2025. The decrease in net income for both the quarterly and year-to-date periods was primarily attributable to a higher provision for credit losses, reflecting strong loan growth, along with increases in noninterest expense and income tax expense, partially offset by higher net interest income and noninterest income.

"Our second quarter and year to date results reflect both the strength of our underlying business and the disciplined growth strategy we continue to execute" commented Gerard A. Champi, President and CEO. "While net income declined compared to last year, our performance was driven by robust loan growth, higher net interest income, and solid noninterest income. The increase in our provision for credit losses and higher operating expenses were consistent with the expansion of our balance sheet and ongoing investments in our franchise. Even with these pressures, we delivered healthy returns for the quarter. As we move forward, we remain focused on prudent risk management, operational efficiency, and delivering long term value for our shareholders." concluded Mr. 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 and core net income, 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 available for sale ("AFS") investment securities and acquisition-related expenses. 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

• On a linked quarter basis, total loans increased $112.6 million, or 10.8% annualized, to $4.3 billion at June 30, 2026 from $4.2 billion at March 31, 2026 and increased $305.3 million, or 7.6%, from $4.0 billion at June 30, 2025.
• On a linked quarter basis, total deposits increased $83.5 million, or 7.6% annualized to $4.5 billion at June 30, 2026 from $4.4 billion at March 31, 2026, and increased $221.5 million, or 5.2%, from $4.3 billion at June 30, 2025.
• Book value per common share at June 30, 2026, increased to $53.56 from $49.44 at June 30, 2025. Tangible book value per common share, a non-GAAP measure¹, increased to $43.51 at June 30, 2026, compared to $38.75 at June 30, 2025.

INCOME STATEMENT REVIEW

• Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure¹, for the three months ended June 30, 2026, improved 15 basis points to 3.82% from 3.67% for the three months ended March 31, 2026, and 13 basis points as compared to 3.69% for the three months ended June 30, 2025. For the six months ended June 30, the FTE NIM, a non-GAAP measure¹, improved 15 basis points to 3.75% in 2026 from 3.60% in 2025.
• The FTE yield on interest-earning assets, a non-GAAP measure¹, increased 13 basis points to 5.64% for the three months ended June 30, 2026, from 5.51% for the three months ended March 31, 2026, but decreased 4 basis points from 5.68% for the same three months ended June 30, 2025. For the six months ended June 30, 2026, the FTE yield on interest-earning assets, a non-GAAP measure¹, was 5.57%, a decrease of 2 basis points from 5.59% for the same period of 2025.
• The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 1 basis point to 2.40% for the three months ended June 30, 2026, from 2.41% for the three months ended March 31, 2026, and 20 basis points from 2.60% for the three months ended June 30, 2025. For the year-to-date period, the cost of funds was 2.41% in 2026, a reduction of 18 basis points compared to 2.59% for 2025.
• The cost of interest-bearing deposits decreased 2 basis points for the three months ended June 30, 2026, to 2.14% from 2.16% for the three months ended March 31, 2026, and 27 basis points from 2.41% for the three months ended June 30, 2025. For the six months ended June 30, 2026, the cost of interest-bearing deposits decreased 29 basis points to 2.15% from 2.44% for the six months of 2025.
• The cost of total deposits, which includes the impact of noninterest-bearing deposits, was 1.68% for the second quarter of 2026, a decrease of 2 basis points compared to 1.70% for the first quarter of 2026, and a decrease of 23 basis points from 1.91% for the second quarter of 2025. The cost of deposits for the six months ended June 30, 2026 was 1.69%, a decrease of 24 basis points from 1.93% for the comparable period of 2025.
• The efficiency ratio, a non-GAAP measure¹, was 55.16% for the quarter ended June 30, 2026, an increase, as compared to 53.92% for the same quarter of 2025, but an improvement as compared to 57.09% for the quarter ended March 31, 2026. For the six months ended June 30, the efficiency ratio, a non-GAAP measure¹, was 56.10% in 2026 and 54.81% in 2025.

Second Quarter 2026 Results – Comparison to First Quarter 2026 and Second Quarter 2025

Net interest income was $45.6 million for the second quarter of 2026, an increase of $2.7 million from the first quarter of 2026 and $3.4 million from the second quarter of 2025. Interest income rose to $67.8 million, compared with $64.7 million in the linked quarter and $65.3 million in the prior-year quarter. On an FTE basis, interest income was $68.7 million, compared with $65.6 million in the first quarter of 2026 and $66.1 million in the second quarter of 2025. The increase was primarily attributable to loan growth and higher investment income resulting from the Company's investment portfolio repositioning strategy, which commenced in the fourth quarter of 2025 and was completed in the first quarter of 2026. Interest expense was $22.1 million for the second quarter of 2026, an increase of $0.3 million compared with $21.8 million in the linked quarter, which primarily reflected increased utilization of FHLB of Pittsburgh advances. Conversely, interest expense decreased $1.0 million from $23.1 million for the comparable prior-year quarter, primarily reflecting lower deposit and borrowing rates. The decrease in rates was partially offset by increased utilization of short-term and long-term borrowings through the FHLB of Pittsburgh and subordinated debt costs associated with the Company's June 2025 issuance of $85 million of subordinated notes, which carry an initial fixed rate of 7.75% through June 2030, as well as the redemption of $33.0 million of subordinated notes due in June 2030 that had repriced to 9.08%.

For the three months ended June 30, 2026, the provision for credit losses was $3.1 million, compared with a benefit of $0.2 million for the same period in 2025, an increase of $3.3 million. The increase in the current quarter was primarily attributable to significant loan growth, while the prior-year quarter benefited from lower specific reserves associated with reductions in nonperforming loans. On a linked quarter basis, the provision increased $1.7 million from $1.4 million, which also primarily reflected strong loan growth.

Noninterest income was $6.5 million and $6.2 million for the three months ended June 30, 2026, and 2025, respectively. The $0.3 million increase in noninterest income was primarily due to a gain of $0.3 million on the sale of a branch property that was part of a sale/leaseback transaction, coupled with increases in wealth management and mortgage banking income, which includes gains on the sale of residential mortgage loans, partially offset by decreases in service charges, fees and commissions and merchant services income. 

Noninterest income decreased $0.4 million from $6.9 million for the first quarter of 2026, primarily due to a $0.5 million reduction in interest rate swap income, partially offset by higher service charges, fees and commissions, merchant services income, and a $0.3 million gain on the sale of a branch property that was part of the aforementioned sale/leaseback transaction. The first quarter of 2026 included a $0.5 million gain on the sale of investment securities related to the Company's portfolio repositioning efforts and $0.5 million in gains on equity investments. There were no sales of available for sale investment securities during the second quarter of 2026.

Noninterest expense was $30.6 million for the second quarter of 2026, an increase of $2.3 million from $28.3 million for the three months ended June 30, 2025, which primarily reflected increases in salaries and employee benefits, due to annual merit increases and higher benefit costs, coupled with an increase in occupancy and equipment expense resulting from higher leasing costs and data processing expenses. Salaries and employee benefits expense was $15.1 million for the three months ended June 30, 2026, compared to $13.8 million for the same three months in 2025. Net occupancy and equipment expenses were $7.3 million for the second quarter of 2026, an increase of $1.0 million from $6.3 million for the same quarter of 2025. On a linked basis, noninterest expense increased $0.7 million from $29.9 million for the quarter ended March 31, 2026, which reflected increases in salaries and employee benefits expenses and other expenses, partially offset by a reduction in occupancy and equipment expense.

Income tax expense was $3.6 million for the three months ended June 30, 2026, compared to $3.8 million for the three months ending March 31, 2026, and $3.5 million for the three months ended June 30, 2025. The effective tax rate was 19.6% for the three months ended June 30, 2026, 20.4% for the three months ended March 31, 2026 and 17.0% for the quarter ended June 30, 2025. The increase in the effective tax rate was largely due to an increase in amortization associated with the Company's low-income housing tax credit investments, coupled with an increase in the provision for state income taxes.

Six-Month Results – Comparison to Prior Year First Six Months

Net interest income for the six months ended June 30, 2026, increased $6.7 million to $88.5 million from $81.7 million for the six months ended June 30, 2025. On an FTE basis, net interest income for the six months ended June 30, 2026, increased $7.0 million to $90.2 million from $83.2 million for the six months ended June 30, 2025. The increase in FTE net interest income was due to a $5.0 million increase in tax-equivalent interest income, a non-GAAP measure¹, coupled with a $2.0 million decrease in interest expense. The Company's net interest spread widened 16 basis points to 3.16 % for the first six months of 2026 from 3.00 % for the same six-month period of 2025. Additionally, comparing the first six months of 2026 and 2025, the Company's FTE net interest margin widened 15 basis points to 3.75% from 3.60%, respectively.

The increase in fully tax-equivalent interest income was primarily driven by higher earning asset balances, particularly taxable loans. This benefit was partially offset by lower overall FTE yields, primarily on taxable loans. Higher balances and yields on tax-exempt investment securities also contributed to the increase.

Total average earning assets increased $195.0 million to $4.9 billion for the six months ended June 30, 2026 from $4.7 billion for the same six months of 2025. Average taxable loans increased $214.0 million to $3.9 billion from $3.7 billion comparing the six months ended June 30, 2026, and 2025, respectively. The yield on taxable loans decreased 18 basis points to 5.96% from 6.14%, respectively, comparing the first six months of 2026 and 2025, which primarily reflected a 75-basis point reduction in the prime rate during the second half of 2025. Accretion associated with purchase accounting fair value discounts on purchased loans was $6.5 million for the six months ended June 30, 2026, compared to $8.5 million for the same period of 2025. Average tax-exempt investments totaled $155.0 million for the six months ended June 30, 2026, an increase of $68.0 million from $87.0 million for the same six-month period ended June 30, 2025. The FTE yield on the tax-exempt investment securities portfolio increased 161 basis points to 3.94% for the six months ended June 30, 2026, from 2.33% for the same six months of 2025. The increase in yield was predominantly due to strategic portfolio repositioning beginning in the fourth quarter of 2025, as new purchases were added at yields higher than existing portfolio yields.

Interest expense decreased $2.0 million to $44.0 million for the six months ended June 30, 2026, compared with $46.0 million for the same period in 2025, primarily due to lower average deposit rates and balances on small-dollar time deposits. These benefits were partially offset by higher average rates and balances on subordinated debt. The average rate paid on interest-bearing deposits decreased 29 basis points to 2.15% from 2.44%, largely reflecting lower market rates.

Average small dollar time deposits, which include brokered deposits, decreased $134.0 million to $280.2 million, for the six months ended June 30, 2026, from $414.2 million for the six months ended June 30, 2025. Average brokered deposits decreased $82.3 million comparing the six months ended June 30, 2026, and 2025. The Company let these higher-costing deposits roll off at maturity and were replaced with lower-costing non-maturity deposits and borrowings. Additionally, the average rate paid for small dollar time deposits decreased 83 basis points to 3.17% from 4.00% for the six months ended June 30, 2026, and 2025, respectively. Average subordinated debt increased $38.9 million to $83.3 million for the six months ended June 30, 2026, from $44.4 million for the same period in 2025, while the average rate paid on subordinated debt increased 179 basis points to 8.47% from 6.68% for the periods ended June 30, 2026, and 2025, respectively, due to a net new issuance of subordinated debt in the second quarter of 2025 in the amount of $52 million.

For the six months ended June 30, 2026, the provision for credit losses was $4.5 million, an increase of $4.5 million from a negligible $39 thousand benefit recorded for the same six months of 2025. The increase in loan provisioning for the year-to-date period of 2026 was primarily impacted by significant loan growth. 

Noninterest income was $13.4 million and $12.5 million for the six months ended June 30, 2026, and 2025, respectively. The $0.9 million increase in noninterest income was primarily due to increases in interest rate swap income of $0.6 million, along with combined gains of $1.0 million on the sale of investment securities available for sale and on the sale and market value appreciation of equity securities and a $0.3 million increase in mortgage banking income, partially offset by a decrease in service charge, fee, and commission income of $0.5 million. The current six-month period ended June 30, 2026, includes a gain on the sale of a branch property of $0.3 million that was part of the aforementioned sale/leaseback transaction. Additionally, the comparable prior year period included a gain of $0.7 million on the sale of the Company's former corporate headquarters in Scranton, PA.

Noninterest expense increased $4.9 million to $60.5 million for the six months ended June 30, 2026, from $55.6 million for the six months ended June 30, 2025, which primarily reflected increases in salaries and employee benefits expenses, and occupancy and equipment expenses. Salaries and employee benefits expense was $29.6 million for the six months ended June 30, 2026, compared to $27.2 million for the same six months in 2025. The $2.4 million increase resulted primarily from annual merit increases and higher health insurance costs. Net occupancy and equipment expenses were $15.0 million for the first six months of 2026, an increase of $2.1 million from $12.9 million for the same six-month period in 2025. The increase was largely caused by higher rent expense associated with the new corporate headquarters and increases in data processing expenses related to the implementation of an on-line account opening platform.

Income tax expense was $7.4 million for the six months ended June 30, 2026, compared to $6.7 million for the six months ended June 30, 2025. The effective tax rate was 20.0% for the six months ended June 30, 2026, and 17.3% in the prior year's same six-month period. The increase in the effective tax rate was largely due to an increase in amortization associated with the Company's low-income housing tax credits investments, coupled with an increase in the provision for state income taxes.

BALANCE SHEET REVIEW

Total loans were $4.3 billion at June 30, 2026, an increase of $112.6 million compared to $4.2 billion at March 31, 2026, and an increase of $305.3 million compared to $4.0 billion at June 30, 2025. Strong demand in all markets for commercial and residential real estate loans were partially offset by reductions to indirect auto, equipment financing and municipal loans.

Total investments were $529.6 million at June 30, 2026, compared to $542.9 million at March 31, 2026, and $582.8 million at June 30, 2025. At June 30, 2026, available for sale securities totaled $458.1 million, a decrease of $11.2 million from $469.3 million at March 31, 2026, and a decrease of $47.1 million from $505.2 million at June 30, 2025. Beginning in the fourth quarter of 2025, the Company began a repositioning of its investment securities portfolio, which was completed in the first quarter of 2026. Proceeds of the sales of U.S. government agency and sponsored agency mortgage-backed securities were used in part to purchase higher yielding US agency mortgage-backed securities and tax-exempt bonds. The Company used the remaining proceeds and the majority of the principal cash flows received during the first half of 2026 to fund loan growth. Held to maturity ("HTM") securities totaled $68.7 million at June 30, 2026, a decrease of $1.9 million from $70.6 million at March 31, 2026, and a decrease of $6.4 million from $75.1 million at June 30, 2025.

Total deposits were $4.5 billion at June 30, 2026, an increase of $83.5 million from $4.4 billion at March 31, 2026, and an increase of $221.5 million from $4.3 billion at June 30, 2025. Noninterest-bearing deposits decreased $22.8 million to $946.5 million at June 30, 2026, from $969.3 million at March 31, 2026, but increased $46.9 million from $899.6 million at June 30, 2025. Interest-bearing deposits increased $106.3 million from $3.5 billion at March 31, 2026, and $174.6 million from $3.4 billion at June 30, 2025, primarily reflecting an increase in brokered deposits. The Company increased its utilization of short-term and longer-term callable brokered deposits during the second quarter of 2026 to offset cyclical outflows of municipal deposits. As a result, brokered deposits represented 7.7% of total deposits at June 30, 2026, compared with 2.5% at March 31, 2026, and 4.6% at June 30, 2025. Approximately 31% of deposits were uninsured at June 30, 2026, compared with 34.5% at March 31, 2026 and 30.7% at June 30, 2025. 

The Company maintained a strong capital position at June 30, 2026. Stockholders' equity equaled $536.2 million or $53.56 per share at June 30, 2026, compared to $525.5 million or $52.50 per share at March 31, 2026, and $494.1 million, or $49.44 per share at June 30, 2025. The increase in stockholders' equity in all periods is primarily attributable to net income, partially offset by dividends paid to shareholders.

Tangible book value, a non-GAAP measure¹, increased to $43.51 per share at June 30, 2026, from $42.29 per share at March 31, 2026, and $38.75 at June 30, 2025. The Company declared dividends of $0.625 for the first and second quarters of 2026 and $0.6175 for the quarter ending June 30, 2025. 

ASSET QUALITY REVIEW

Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $14.7 million or 0.34% of loans, net and foreclosed assets, at June 30, 2026, a $2.4 million increase compared to $12.3 million, or 0.29% of loans, net and foreclosed assets at March 31, 2026.  The linked-quarter increase was primarily due to one commercial relationship involving two loans placed on nonaccrual status at the end of the second quarter of 2026. In comparison to the year ago period, nonperforming assets decreased $2.8 million from $17.5 million, or 0.44% of loans, net and foreclosed assets at June 30, 2025, primarily reflecting a $3.7 million reduction in nonaccrual loans. Nonperforming assets represented 0.27% of total assets at June 30, 2026, compared to 0.23% at March 31, 2026 and 0.34% at June 30, 2025. At June 30, 2026, the Company held one foreclosed commercial property with a carrying value of $0.6 million. The carrying value of this property was $0.8 million at March 31, 2026. The property went under a sales agreement during the second quarter, and it was written down to the sales price less estimated selling costs. The Company had no foreclosed assets at June 30, 2025.

During the three months ended June 30, 2026, net charge-offs were $0.4 million and the provision for credit losses was $3.1 million, compared to net recoveries of $0.1 million and a benefit for credit losses of $0.2 million for the same period of 2025. The allowance for credit losses equaled $42.3 million or 0.98% of loans, net, at June 30, 2026, compared to $39.6 million or 0.94% of loans, net, at March 31, 2026, and $40.9 million or 1.02% of loans, net at June 30, 2025.

^{_________________________________
1} See reconciliation of non-GAAP financial measures on pg.14-15.

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:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to risks and uncertainties. These statements are based on assumptions and may describe future plans, strategies and expectations of Peoples Financial Services Corp. and its subsidiaries (the "Company") that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Company's control). These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. All statements in this release, other than statements of historical facts, are forward-looking statements.

The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Important factors that could cause the Company's actual results to differ materially from those in the forward-looking statements include, but are not limited to: changes in interest rates, including their effect on the Company's investment values; impairment charges relating to the Company's investment portfolio; credit risks in connection with the Company's lending activities; the Company's exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; the Company's ability to maintain an adequate allowance for credit losses; access to liquidity; the strength of the Company's customer deposit levels; unrealized losses; reliance on the Company's subsidiaries; accounting procedures, policies and requirements; changes in the value of goodwill; the Company's ability to attract and retain key personnel; the strength of the Company's disclosure controls and procedures and internal controls over financial reporting; potential for errors, omissions or fraud; environmental liabilities; reliance on third-party vendors and service providers; the Company's ability to compete effectively in the Company's industry and within the Company's market area, including with respect to competition from financial technology companies and non-bank entities; the development and use of artificial intelligence ("AI") in business processes, services, and products, including emerging focus among regulators and other officials related to risks in connection with the development and use of AI; the Company's 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; the Company's ability to comply with privacy and data protection requirements; changes in U.S. or regional economic conditions; the soundness of other financial institutions; changes in laws and regulations; geopolitical instability, including wars and other conflicts; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; the Company's ability to realize the anticipated benefits of future acquisitions or a change in control; and the Company's ability to pay dividends. Additional factors that may affect the Company's results are discussed in the Company's 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.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

Summary Data Peoples Financial Services Corp.  Three Quarter and Six-Month Trend (Unaudited) (In thousands, except share and per share data)
			Three Months Ended												Six Months Ended
		June 30				Mar 31				June 30				June 30				June 30
		2026				2026				2025				2026				2025
Key performance data:
Share and per share amounts:
Net income - diluted		$	1.48			$	1.47			$	1.68			$	2.95			$	3.18
Core net income (1)		$	1.48			$	1.43			$	1.69			$	2.91			$	3.19
Cash dividends declared		$	0.6250			$	0.6250			$	0.6175			$	1.2500			$	1.2350
Book value		$	53.56			$	52.50			$	49.44			$	53.56			$	49.44
Tangible book value (1)		$	43.51			$	42.29			$	38.75			$	43.51			$	38.75
Market value:
High		$	67.75			$	57.17			$	51.21			$	67.75			$	53.70
Low		$	52.63			$	47.82			$	40.67			$	47.39			$	40.67
Closing		$	66.37			$	53.33			$	49.37			$	66.37			$	49.37
Market capitalization		$	664,388			$	533,859			$	493,438			$	664,388			$	493,438
Common shares outstanding			10,010,367				10,010,488				9,994,696				10,010,367				9,994,696
Selected ratios:
Return on average stockholders' equity (2)			11.10	%			11.26	%			13.87	%			11.18	%			13.30	%
Core return on average stockholders' equity (1)(2)			11.10	%			10.95	%			13.92	%			11.03	%			13.37	%
Return on average tangible stockholders' equity (1)(2)			13.70	%			13.97	%			17.73	%			13.83	%			17.13	%
Core return on average tangible stockholders' equity (1)(2)			13.70	%			13.59	%			17.79	%			13.64	%			17.23	%
Return on average assets (2)			1.13	%			1.15	%			1.36	%			1.14	%			1.29	%
Core return on average assets (1)(2)			1.13	%			1.12	%			1.36	%			1.13	%			1.29	%
Stockholders' equity to total assets			9.86	%			9.69	%			9.67	%			9.86	%			9.67	%
Efficiency ratio (1)(3)			55.16	%			57.09	%			53.92	%			56.10	%			54.81	%
Nonperforming assets to loans, net, and foreclosed assets			0.34	%			0.29	%			0.44	%			0.34	%			0.44	%
Nonperforming assets to total assets			0.27	%			0.23	%			0.34	%			0.27	%			0.34	%
Net charge-offs to average loans, net (2)			0.04	%			0.08	%			0.00	%			0.06	%			0.00	%
Allowance for credit losses to loans, net			0.98	%			0.94	%			1.02	%			0.98	%			1.02	%
Interest earning assets yield (FTE) (4)			5.64	%			5.51	%			5.68	%			5.57	%			5.59	%
Cost of funds			2.40	%			2.41	%			2.60	%			2.41	%			2.59	%
Net interest spread (FTE) (4)			3.24	%			3.10	%			3.08	%			3.16	%			3.30	%
Net interest margin (FTE) (1)(4)			3.82	%			3.67	%			3.69	%			3.75	%			3.60	%

(1)	See Reconciliation of Non-GAAP financial measures on pages 14-15.
(2)	Presented on an annualized basis.
(3)	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 (losses) gains on sales of fixed assets.
(4)	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 and Comprehensive Income (Unaudited) (In thousands, except per share data)
		Three Months Ended									Six Months Ended
		June 30			Mar 31			June 30				June 30			June 30
		2026			2026			2025				2026			2025
Interest income:
Interest and fees on loans:
Taxable		$	59,483		$	56,316		$	57,459		$	115,799		$	112,671
Tax-exempt			2,155			2,068			2,302			4,223			4,547
Interest and dividends on investment securities:
Taxable			3,926			4,035			4,604			7,961			8,738
Tax-exempt			1,261			1,133			399			2,394			795
Dividends			305			259			40			564			81
Interest on interest-bearing deposits in other banks			622			893			531			1,515			929
Total interest income			67,752			64,704			65,335			132,456			127,761
Interest expense:
Interest on deposits			18,188			18,139			20,303			36,327			41,150
Interest on short-term borrowings			536			372			410			908			635
Interest on long-term debt			1,500			1,404			1,211			2,904			2,388
Interest on subordinated debt			1,750			1,749			1,026			3,499			1,469
Interest on junior subordinated debt			174			173			188			347			374
Total interest expense			22,148			21,837			23,138			43,985			46,016
Net interest income			45,604			42,867			42,197			88,471			81,745
Provision (benefit) for credit losses			3,105			1,387			(239)			4,492			(39)
Net interest income after provision (benefit) for credit losses			42,499			41,480			42,436			83,979			81,784
Noninterest income:
Service charges, fees, commissions and other			3,411			3,157			3,664			6,568			7,068
Merchant services income			489			180			584			669			815
Commissions and fees on fiduciary activities			588			551			563			1,139			1,100
Wealth management income			753			646			619			1,399			1,269
Mortgage banking income			302			241			125			543			239
Increase in cash surrender value of life insurance			500			497			535			997			1,061
Interest rate swap income			187			660			164			847			207
Net gains (losses) on equity investments			33			456			(7)			489			64
Net gains on sale of investment securities available for sale						510						510
Net gains on sale of fixed assets			271									271			680
Total noninterest income			6,534			6,898			6,247			13,432			12,503
Noninterest expense:
Salaries and employee benefits expense			15,087			14,517			13,761			29,604			27,242
Net occupancy and equipment expense			7,338			7,675			6,284			15,013			12,894
Acquisition related expenses									66						220
Amortization of intangible assets			1,518			1,517			1,684			3,035			3,367
FDIC insurance and assessments			709			756			976			1,465			1,998
Other expenses			5,958			5,398			5,491			11,356			9,894
Total noninterest expense			30,610			29,863			28,262			60,473			55,615
Income before income taxes			18,423			18,515			20,421			36,938			38,672
Income tax expense			3,618			3,768			3,465			7,386			6,707
Net income		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Other comprehensive income:
Unrealized gains (losses) on investment securities available for sale		$	2,431		$	(3,383)		$	1,859		$	(952)		$	7,431
Reclassification adjustment for net gains on available for sale securities included in net income						(510)						(510)
Change in derivative fair value			80			156			16			236			(132)
Income tax expense (benefit) related to other comprehensive income (loss)			551			(820)			409			(269)			1,592
Other comprehensive income (loss), net of income tax expense (benefit)			1,960			(2,917)			1,466			(957)			5,707
Comprehensive income		$	16,765		$	11,830		$	18,422		$	28,595		$	37,672
Share and per share amounts:
Net income - basic		$	1.48		$	1.47		$	1.70		$	2.95		$	3.20
Net income - diluted			1.48			1.47			1.68			2.95			3.18
Cash dividends declared		$	0.6250		$	0.6250		$	0.6175		$	1.2500		$	1.2350
Average common shares outstanding - basic			10,010,529			10,002,903			9,994,955			10,006,737			9,993,944
Average common shares outstanding - diluted			10,036,037			10,029,213			10,082,260			10,033,374			10,062,831

 

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Three Months Ended
		June 30, 2026									March 31, 2026									June 30, 2025
		Average			Interest			Yield/			Average			Interest			Yield/			Average			Interest			Yield/
		Balance			Inc./Exp.			Rate			Balance			Inc./Exp.			Rate			Balance			Inc./Exp.			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,973,583		$	59,483		6.00	%		$	3,859,588		$	56,316		5.92	%		$	3,707,650		$	57,459		6.22	%
Tax-exempt			263,731			2,728		4.15				258,745			2,618		4.10				282,406			2,914		4.14
Total loans			4,237,314			62,211		5.89				4,118,333			58,934		5.80				3,990,056			60,373		6.07
Investments:
Taxable			422,646			4,231		4.02				461,292			4,294		3.78				540,424			4,644		3.45
Tax-exempt			160,117			1,596		4.00				149,700			1,434		3.88				86,899			505		2.33
Total investments			582,763			5,827		4.01				610,992			5,728		3.80				627,323			5,149		3.29
Interest-bearing deposits			67,064			622		3.72				97,657			893		3.71				48,270			531		4.41
Total earning assets			4,887,141			68,660		5.64	%			4,826,982			65,555		5.51	%			4,665,649			66,053		5.68	%
Less: allowance for credit losses			40,521									39,470									41,837
Other assets			401,762									399,812									390,522
Total assets		$	5,248,382								$	5,187,324								$	5,014,334
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts		$	1,034,838		$	6,673		2.59	%		$	1,020,493		$	6,471		2.57	%		$	708,585		$	6,992		3.96	%
Interest-bearing demand and NOW accounts			1,213,141			5,825		1.93				1,224,040			5,938		1.97				1,406,998			5,882		1.68
Savings accounts			511,202			466		0.37				504,166			421		0.34				501,975			376		0.30
Time deposits less than $100			290,045			2,297		3.18				270,285			2,109		3.16				404,142			3,991		3.96
Time deposits $100 or more			365,167			2,927		3.22				383,825			3,200		3.38				352,216			3,062		3.49
Total interest-bearing deposits			3,414,393			18,188		2.14				3,402,809			18,139		2.16				3,373,916			20,303		2.41
Short-term borrowings			56,166			536		3.83				39,180			372		3.85				35,587			410		4.62
Long-term debt			145,346			1,500		4.14				133,990			1,404		4.25				101,066			1,211		4.81
Subordinated debt			83,334			1,750		8.42				83,222			1,749		8.52				55,622			1,026		7.40
Junior subordinated debt			8,177			174		8.54				8,150			173		8.61				8,075			188		9.34
Total borrowings			293,023			3,960		5.42				264,542			3,698		5.67				200,350			2,835		5.68
Total interest-bearing liabilities			3,707,416			22,148		2.40	%			3,667,351			21,837		2.41	%			3,574,266			23,138		2.60	%
Noninterest-bearing deposits			940,512									929,686									897,212
Other liabilities			65,432									58,944									52,608
Stockholders' equity			535,022									531,343									490,248
Total liabilities and stockholders' equity		$	5,248,382								$	5,187,324								$	5,014,334
Net interest income/spread					$	46,512		3.24	%					$	43,718		3.10	%					$	42,915		3.08	%
Net interest margin								3.82	%								3.67	%								3.69	%
Tax-equivalent adjustments:
Loans					$	573								$	550								$	612
Investments						335									301									106
Total adjustments					$	908								$	851								$	718

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)
		Six Months Ended
		June 30, 2026								June 30, 2025
		Average			Interest Income/			Yield/		Average			Interest Income/			Yield/
		Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,916,900		$	115,799		5.96	%	$	3,702,911		$	112,671		6.14	%
Tax-exempt			261,252			5,346		4.13			281,486			5,756		4.12
Total loans			4,178,152			121,145		5.85			3,984,397			118,427		5.99
Investments:
Taxable			441,862			8,525		3.89			548,124			8,819		3.24
Tax-exempt			154,937			3,030		3.94			86,985			1,006		2.33
Total investments			596,799			11,555		3.90			635,109			9,825		3.12
Interest-bearing deposits			82,275			1,515		3.71			42,754			929		4.38
Total earning assets			4,857,226			134,215		5.57	%		4,662,260			129,181		5.59	%
Less: allowance for credit losses			39,998								41,960
Other assets			400,794								391,221
Total assets		$	5,218,022							$	5,011,521
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts		$	1,027,706		$	13,144		2.58	%	$	698,111		$	13,562		3.92	%
Interest-bearing demand and NOW accounts			1,218,560			11,763		1.95			1,435,943			12,298		1.73
Savings accounts			507,704			888		0.35			500,392			737		0.30
Time deposits less than $100			280,219			4,406		3.17			414,197			8,219		4.00
Time deposits $100 or more			374,444			6,126		3.30			356,817			6,334		3.58
Total interest-bearing deposits			3,408,633			36,327		2.15			3,405,460			41,150		2.44
Short-term borrowings			47,720			908		3.84			27,925			635		4.59
Long-term debt			139,700			2,904		4.19			99,426			2,388		4.84
Subordinated debt			83,278			3,499		8.47			44,373			1,469		6.68
Junior subordinated debt			8,163			347		8.57			8,063			374		9.35
Total borrowings			278,861			7,658		5.54			179,787			4,866		5.46
Total interest-bearing liabilities			3,687,494			43,985		2.41	%		3,585,247			46,016		2.59	%
Noninterest-bearing deposits			935,129								886,193
Other liabilities			62,206								55,298
Stockholders' equity			533,193								484,783
Total liabilities and stockholders' equity		$	5,218,022							$	5,011,521
Net interest income/spread					$	90,230		3.16	%				$	83,165		3.00	%
Net interest margin								3.75	%							3.60	%
Tax-equivalent adjustments:
Loans					$	1,123							$	1,209
Investments						636								211
Total adjustments					$	1,759							$	1,420

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. Consolidated Balance Sheets (Unaudited) (In thousands)
		June 30			Mar 31			June 30
At period end		2026			2026			2025
Assets:
Cash and due from banks		$	74,930		$	59,479		$	60,173
Interest-bearing balances in other banks			181,320			269,133			115,566
Investment securities:
Available for sale			458,144			469,261			505,181
Held to maturity			68,723			70,557			75,137
Equity investments carried at fair value			2,748			3,054			2,494
Total investments			529,615			542,872			582,812
Loans held for sale			718			1,181			547
Loans			4,302,821			4,190,202			3,997,525
Less: allowance for credit losses			42,311			39,586			40,890
Net loans			4,260,510			4,150,616			3,956,635
Goodwill			75,986			75,986			75,986
Premises and equipment, net			79,523			79,206			76,896
Bank owned life insurance			83,124			83,417			87,635
Deferred tax assets			25,905			26,264			31,647
Accrued interest receivable			17,770			17,991			15,854
Other intangible assets, net			24,622			26,161			30,778
Other assets			86,523			91,024			73,350
Total assets		$	5,440,546		$	5,423,330		$	5,107,879
Liabilities:
Deposits:
Noninterest-bearing		$	946,528		$	969,341		$	899,597
Interest-bearing			3,562,324			3,456,028			3,387,752
Total deposits			4,508,852			4,425,369			4,287,349
Short-term borrowings			85,331			179,321			76,340
Long-term debt			154,472			134,750			103,449
Subordinated debt			83,392			83,289			83,164
Junior subordinated debt			8,194			8,167			8,088
Accrued interest payable			4,727			7,890			4,640
Other liabilities			59,393			59,039			50,753
Total liabilities			4,904,361			4,897,825			4,613,783
Stockholders' equity:
Common stock			20,053			20,047			20,015
Capital surplus			251,224			251,065			250,468
Retained earnings			290,556			282,001			258,601
Accumulated other comprehensive loss			(25,648)			(27,608)			(34,988)
Total stockholders' equity			536,185			525,505			494,096
Total liabilities and stockholders' equity		$	5,440,546		$	5,423,330		$	5,107,879
Book value per common share		$	53.56		$	52.50		$	49.44
Tangible book value per common share (1)		$	43.51		$	42.29		$	38.75

(1)	See reconciliation of Non-GAAP financial measures on pages 14-15.

 

Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands)
		June 30			Mar 31			June 30
At period end		2026			2026			2025
Commercial and industrial		$	712,705		$	675,446		$	678,539
Municipal			200,552			212,586			194,529
Real estate
Commercial			2,490,510			2,423,027			2,252,574
Residential			640,000			618,156			573,864
Total real estate			3,130,510			3,041,183			2,826,438
Consumer
Indirect auto			82,721			85,726			104,618
Consumer other			16,775			15,592			13,929
Total consumer			99,496			101,318			118,547
Equipment financing			159,558			159,669			179,472
Total		$	4,302,821		$	4,190,202		$	3,997,525

		June 30			Mar 31			June 30
At period end		2026			2026			2025
Nonperforming assets:
Nonaccrual/restructured loans		$	13,667		$	11,437		$	17,390
Accruing loans past due 90 days or more			451			160			72
Foreclosed assets			630			750
Total nonperforming assets		$	14,748		$	12,347		$	17,462

			June 30			Mar 31			June 30
Three months ended			2026			2026			2025
Allowance for credit losses:
Beginning balance		$	39,586		$	39,007		$	41,054
Charge-offs			697			976			1,151
Recoveries			317			168			1,226
Provision for credit losses			3,105			1,387			(239)
Ending balance		$	42,311		$	39,586		$	40,890

 

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
		Three Months Ended									Six Months Ended
		June 30			Mar 31			June 30			June 30			June 30
		2026			2026			2025			2026			2025
Core net income per share:
Net income GAAP		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Adjustments:
Less: Net gains on sale of available for sale securities						510						510
Add: Net gains on sale of available for sale securities tax adjustment						112						112
Add: Acquisition related expenses									66						220
Less: Acquisition related expenses tax adjustment									14						48
Core net income		$	14,805		$	14,349		$	17,008		$	29,154		$	32,137
Average common shares outstanding - diluted			10,036,037			10,029,213			10,082,260			10,033,374			10,062,831
Core net income per diluted share		$	1.48		$	1.43		$	1.69		$	2.91		$	3.19
Tangible book value:
Total stockholders' equity		$	536,185		$	525,505		$	494,096		$	536,185		$	494,096
Less: Goodwill			75,986			75,986			75,986			75,986			75,986
Less: Other intangible assets, net			24,622			26,161			30,778			24,622			30,778
Total tangible stockholders' equity		$	435,577		$	423,358		$	387,332		$	435,577		$	387,332
Common shares outstanding			10,010,367			10,010,488			9,994,696			10,010,367			9,994,696
Tangible book value per share		$	43.51		$	42.29		$	38.75		$	43.51		$	38.75
Core return on average stockholders' equity:
Net income GAAP		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Adjustments:
Less: Net gains on sale of available for sale securities						510						510
Add: Net gains on sale of available for sale securities tax adjustment						112						112
Add: Acquisition related expenses									66						220
Less: Acquisition related expenses tax adjustment									14						48
Core net income		$	14,805		$	14,349		$	17,008		$	29,154		$	32,137
Average stockholders' equity		$	535,022		$	531,343		$	490,248		$	533,193		$	484,783
Core return on average stockholders' equity			11.10	%		10.95	%		13.92	%		11.03	%		13.37	%
Return on average tangible stockholders' equity:
Net income GAAP		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Average stockholders' equity		$	535,022		$	531,343		$	490,248		$	533,193		$	484,783
Less: goodwill and intangibles			101,482			103,156			106,764			102,315			108,562
Average tangible stockholders' equity		$	433,540		$	428,187		$	383,484		$	430,878		$	376,221
Return on average tangible stockholders' equity			13.70	%		13.97	%		17.73	%		13.83	%		17.13	%
Core return on average tangible stockholders' equity:
Net income GAAP		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Adjustments:
Less: Net gains on sale of available for sale securities						510						510
Add: Net gains on sale of available for sale securities tax adjustment						112						112
Add: Acquisition related expenses									66						220
Less: Acquisition related expenses tax adjustment									14						48
Core net income		$	14,805		$	14,349		$	17,008		$	29,154		$	32,137
Average stockholders' equity		$	535,022		$	531,343		$	490,248		$	533,193		$	484,783
Less: goodwill and intangibles			101,482			103,156			106,764			102,315			108,562
Average tangible stockholders' equity		$	433,540		$	428,187		$	383,484		$	430,878		$	376,221
Core return on average tangible stockholders' equity			13.70	%		13.59	%		17.79	%		13.64	%		17.23	%
Core return on average assets:
Net income GAAP		$	14,805		$	14,747		$	16,956		$	29,552		$	31,965
Adjustments:
Less: Net gains on sale of available for sale securities						510						510
Add: Net gains on sale of available for sale securities tax adjustment						112						112
Add: Acquisition related expenses									66						220
Less: Acquisition related expenses tax adjustment									14						48
Core net income		$	14,805		$	14,349		$	17,008		$	29,154		$	32,137
Average assets		$	5,248,382		$	5,187,324		$	5,014,334		$	5,218,022		$	5,011,521
Core return on average assets			1.13	%		1.12	%		1.36	%		1.13	%		1.29	%

(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)

The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three and six months ended:

			Three Months Ended											Six Months Ended
		June 30				Mar 31				June 30				June 30				June 30
		2026				2026				2025				2026				2025
Interest income (GAAP)		$	67,752			$	64,704			$	65,335			$	132,456			$	127,761
Adjustment to FTE			908				851				718				1,759				1,420
Interest income adjusted to FTE (non-GAAP)			68,660				65,555				66,053				134,215				129,181
Interest expense			22,148				21,837				23,138				43,985				46,016
Net interest income adjusted to FTE (non-GAAP)		$	46,512			$	43,718			$	42,915			$	90,230			$	83,165

The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three and six months ended:

		Three Months Ended												Six Months Ended
		June 30				Mar 31				June 30				June 30				June 30
		2026				2026				2025				2026				2025
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)		$	30,610			$	29,863			$	28,262			$	60,473			$	55,615
Less: Amortization of intangible assets expense			1,518				1,517				1,684				3,035				3,367
Less: Acquisition related expenses											66								220
Adjusted Noninterest expense (non-GAAP)			29,092				28,346				26,512				57,438				52,028
Net interest income (GAAP)			45,604				42,867				42,197				88,471				81,745
Plus: Taxable equivalent adjustment			908				851				718				1,759				1,420
Noninterest income (GAAP)			6,534				6,898				6,247				13,432				12,503
Less: Net gains (losses) on equity securities			33				456				(7)				489				64
Less: Net gains on sale of investment securities available for sale							510								510
Less: Net gains on sale of fixed assets			271												271				680
Net interest income (FTE) plus noninterest income (non-GAAP)		$	52,742			$	49,650			$	49,169			$	102,392			$	94,924
Efficiency ratio (non-GAAP)			55.16	%			57.09	%			53.92	%			56.10	%			54.81	%

 

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SOURCE Peoples Financial Services Corp.

FAQ

How did Peoples Financial Services (PFIS) perform in Q2 2026?

Peoples reported Q2 2026 net income of $14.8 million, or $1.48 per diluted share, down from $17.0 million, or $1.68, in Q2 2025. According to Peoples Financial Services, results reflected higher credit loss provisioning and operating costs, partly offset by stronger net interest and noninterest income.

Why did PFIS earnings decline year over year in the second quarter of 2026?

PFIS earnings declined mainly due to a higher provision for credit losses, increased noninterest expense, and higher income tax expense. According to Peoples Financial Services, these impacts outweighed the benefits from higher net interest income, noninterest income, and balance sheet growth during the quarter.

What were the loan and deposit balances for PFIS at June 30, 2026?

At June 30, 2026, PFIS reported total loans of $4.3 billion and total deposits of $4.5 billion. According to Peoples Financial Services, loans rose $112.6 million sequentially and $305.3 million year over year, while deposits increased $83.5 million sequentially and $221.5 million year over year.

How did Peoples Financial Services' net interest margin change in Q2 2026?

The fully tax‑equivalent net interest margin rose to 3.82% in Q2 2026, up from 3.67% in Q1 2026 and 3.69% in Q2 2025. According to Peoples Financial Services, the improvement reflected loan growth, portfolio repositioning, and lower funding costs.

What happened to PFIS book value and tangible book value per share in 2026?

Book value per share increased to $53.56 and tangible book value per share to $43.51 at June 30, 2026. According to Peoples Financial Services, both measures were higher than at June 30, 2025, indicating growth in common equity and tangible common equity per share.

How large was the provision for credit losses for PFIS in Q2 and year to date 2026?

The provision for credit losses was $3.1 million in Q2 2026 and $4.5 million for the first six months. According to Peoples Financial Services, increases versus 2025 were primarily driven by significant loan growth and related allowance needs.

What were PFIS returns on average assets and equity in Q2 2026?

PFIS reported annualized ROAA of 1.13% and ROAE of 11.10% for Q2 2026, down from 1.36% and 13.87% a year earlier. According to Peoples Financial Services, higher provisioning and expenses contributed to the lower profitability ratios despite balance sheet growth.