Peoples Financial Services Corp. Reports Unaudited Third Quarter and Year to Date 2026 Earnings

Federal tax credits reduced third-quarter income tax expense by $1.2 million.

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MOOSIC, Pa.--(BUSINESS WIRE)-- Peoples Financial Services Corp. (“Peoples” or the “Company”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the “Bank”), today reported unaudited financial results at and for the three and nine months ended September 30, 2026.

Peoples reported net income of $19.1 million, or $1.90 per diluted share for the three months ended September 30, 2026, an increase of $3.9 million compared to net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025. Net income for the nine months ended September 30, 2026 totaled $48.7 million, or $4.85 per diluted share, an increase of $1.5 million, compared to $47.2 million, or $4.69 per diluted share for the same nine months of 2025. Return on average assets (“ROAA”) and return on average equity (“ROAE”) on an annualized basis for the three months ended September 30, 2026, were 1.41% and 14.07%, respectively, compared to 1.19% and 12.02%, respectively, for the three months ended September 30, 2025. For the nine months ended September 30, 2026, annualized ROAA and ROAE were 1.23% and 12.16%, respectively, compared to 1.25% and 12.86%, respectively, for the nine months ended September 30, 2025. The increase in net income for both the three- and nine-month periods was primarily attributable to higher net interest income and non-interest income, partially offset by increases in non-interest expense. For the three-month period ending September 30, 2026, there was a benefit of credit losses whereas the nine-month period recognized a provision of credit losses that partially offset the increase in net income for the year-to-date period.

“We are pleased with our strong third-quarter performance, highlighted by meaningful growth in net income and improved returns on both assets and equity. Higher net interest income and non-interest income reflect the strength of our core business, the dedication of our team, and our disciplined execution” commented Gerard A. Champi, President & CEO. “These results underscore the resilience and strength of our franchise and our continued focus on creating long-term value for our shareholders. As we move forward, we remain committed on delivering consistent financial performance while continuing to invest in our customers, employees, and the communities we serve.” 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, 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 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 $60.7 million, or 5.6% annualized, to $4.4 billion as of September 30, 2026, from $4.3 billion as of June 30, 2026, and increased $347.1 million, or 8.6% annualized, from $4.0 billion as of September 30, 2025.
• Nonperforming assets were $10.3 million as of September 30, 2026, an improvement of $4.4 million from $14.7 million as of June 30, 2026, and $6.5 million from $16.8 million at September 30, 2025. Nonperforming assets represented 0.24% of loans, net and foreclosed assets as of September 30, 2026, versus 0.34% and 0.42% of loans, net and foreclosed assets as of June 30, 2026 and September 30, 2025, respectively.
• On a linked quarter basis, total deposits increased $163.3 million, or 14.4% annualized, to $4.7 billion as of September 30, 2026, from $4.5 billion as of June 30, 2026, and increased $382.4 million, or 8.9%, from $4.3 billion as of September 30, 2025.
• Book value per common share at September 30, 2026, increased $1.92 to $52.87 from $50.95 at September 30, 2025. Tangible book value per common share, a non-GAAP measure¹, increased $2.52 to $42.95 at September 30, 2026, compared to $40.43 at September 30, 2025.

INCOME STATEMENT REVIEW

• Net income increased $3.9 million, or 25.5%, to $19.1 million from $15.2 million in the year ago quarter and $4.3 million, or 29.2%, from $14.8 million for the three months ending June 30, 2026. Net income increased to $48.7 million, or 3.1%, from $47.2 million for the nine months ending September 30, 2026, and 2025, respectively.
• Net interest margin (“NIM”), calculated on a fully taxable equivalent (“FTE”) basis, a non-GAAP measure¹, for the three months ended September 30, 2026, improved 26 basis points to 3.80% as compared to 3.54% for the three months ended September 30, 2025, but contracted 2 basis points from 3.82% for the three months ended June 30, 2026. For the nine months ended September 30, the FTE NIM, a non-GAAP measure¹, improved 19 basis points to 3.77% in 2026 from 3.58% in 2025.
• The FTE yield on interest-earning assets, a non-GAAP measure¹, for the three months ended September 30, 2026, increased 15 basis points to 5.71% from 5.56% from the three months ended September 30, 2025, and increased 7 basis points from 5.64% for the three months ended June 30, 2026. For the nine months ended September 30, 2026, the FTE yield on interest-earning assets, a non-GAAP measure¹, was 5.62%, an increase of 4 basis points from 5.58% for the nine months ended September 30, 2025.
• The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 15 basis points to 2.49% from 2.64% for the three months ended September 30, 2026, and 2025 respectively. The cost of funds increased 9 basis points from 2.40% from the three months ended June 30, 2026. For the nine-month periods ended September 30, the cost of funds was 2.43% in 2026, a reduction of 18 basis points compared to 2.61% for 2025.
• The cost of interest-bearing deposits decreased 13 basis points to 2.26% for the three months ended September 30, 2026, from 2.39% as of the three months ended September 30, 2025, but increased 12 basis points from 2.14% for the three months ended June 30, 2026. For the nine months ended September 30, 2026, the cost of interest-bearing deposits decreased 23 basis points to 2.19% from 2.42% for the same nine months of 2025.
• The cost of total deposits, which includes the impact of noninterest-bearing deposits, was 1.79% for the third quarter of 2026, a decrease of 9 basis points from 1.88% for the third quarter of 2025. However, the cost of total deposits increased 11 basis points compared to 1.68% for the second quarter of 2026. The cost of deposits for the nine months ended September 30, 2026, was 1.72%, a decrease of 20 basis points from 1.92% for the comparable period of 2025.

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

Net interest income increased $6.1 million to $47.3 million for the third quarter of 2026, compared to $41.2 million for the prior year third quarter. FTE net interest income, a non-GAAP measure¹, increased $6.4 million to $48.3 million as of September 30, 2026, from $41.9 million at September 30, 2025. Specifically, the increase in FTE net interest income, a non-GAAP measure¹, resulted largely from a $6.5 million increase in FTE interest income, while interest expense increased modestly by $0.2 million. The increase in interest income reflected improved earning asset yields and an increase in loan volume, while lower deposit and borrowing costs almost entirely offset the impact of growth in interest-bearing liabilities on interest expense. Linked quarter net interest income increased $1.7 million from $45.6 million at June 30, 2026. FTE net interest income for the linked quarters increased $1.8 million from $46.5 million in June 2026, which was due to a $3.8 million increase in FTE interest income, partially offset by a $2.0 million increase in interest expense. The linked quarters saw increases in funding costs as the Company utilized CD specials, brokered deposits and FHLB advances to fund loan growth.

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1 See reconciliation of non-GAAP financial measures below.

For the three months ended September 30, 2026, the Company recorded a benefit for credit losses of $1.1 million, compared to a benefit of $0.8 million for the same period in 2025, and a provision of $3.1 million for the second quarter of 2026. The reduction in credit provisioning reflected improved asset quality metrics, seasoning of the equipment loan segment and lower specific reserves resulting from the successful resolution of nonperforming loans.

Noninterest income was $5.7 million and $5.5 million for the three months ended September 30, 2026, and 2025, respectively. The Company recorded a loss on the sales of administrative offices of $0.6 million in the third quarter of 2025. There were no such losses recorded during the third quarter of 2026. Non-interest income decreased $0.8 million from $6.5 million for the linked quarter ending June 30, 2026, primarily due to decreases in merchant services and service charges and the absence of the $0.3 million gain on the sale of a branch property that was part of a sale/leaseback transaction in the second quarter of 2026.

The current quarter’s non-interest expense increased $3.0 million to $31.7 million from the prior year’s same quarter non-interest expense of $28.7 million. Salaries and employee benefits increased $1.5 million associated with merit increases, staff additions, and higher benefit costs. Other expenses increased $1.1 million primarily due to increases in corporate business development and professional fees. Noninterest expense increased by $1.1 million from $30.6 million for the quarter ended June 30, 2026. Salaries increased $0.5 million, which primarily reflected staff additions and higher stock-based compensation expenses. Occupancy and equipment expenses increased $0.4 million resulting from higher data processing expenses. The efficiency ratio, a non-GAAP measure¹, was 56.12% for the quarter ended September 30, 2026, an increase as compared to 55.16% for the linked quarter ended June 30, 2026, but an improvement from 56.52% from the prior year quarter ended September 30, 2025.

Income tax expense was $3.3 million for the three months ended September 30, 2026, compared to $3.6 million for the three months ended September 30, 2025, and $3.6 million for the three months ended June 30, 2026. The effective tax rate was 14.6% for the three months ended September 30, 2026, 19.1% for the quarter ended September 30, 2025, and 19.6% for the three months ended June 30, 2026. The decrease in the effective tax rate for the current quarter was largely due to the purchase of 2025 federal tax credits during the three months ended September 30, 2026, which reduced income tax expense by $1.2 million.

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

Net interest income for the nine months ended September 30, 2026, increased $12.9 million to $135.8 million from $122.9 million for the nine months ended September 30, 2025. On an FTE basis, net interest income for the nine months ended September 30, 2026, increased $13.4 million to $138.5 million from $125.1 million for the nine months ended September 30, 2025. The increase in FTE net interest income was due to an $11.6 million increase in tax-equivalent interest income, a non-GAAP measure¹, coupled with a $1.8 million decrease in interest expense. The Company’s net interest spread widened 22 basis points to 3.19% for the nine months ended September 30, 2026 from 2.97% for the same nine-month period of 2025. Additionally, comparing the nine months ended September 30, 2026 and 2025, the Company’s FTE net interest margin improved by 19 basis points to 3.77% from 3.58%, respectively.

The increase in fully tax-equivalent interest income was driven primarily by higher earning asset balances, particularly taxable loans, and by higher balances and yields on tax-exempt investment securities. Lower overall FTE yields, mainly on taxable investments, partially offset these benefits.

Total average earning assets increased $241.4 million to $4.9 billion for the nine months ended September 30, 2026, from $4.7 billion for the same nine months of 2025. Average taxable loans increased $245.4 million to $4.0 billion from $3.7 billion comparing the nine months ended September 30, 2026, and 2025, respectively. The yield on taxable loans decreased 10 basis points to 6.03% from 6.13% between the two periods, which primarily reflected a 75 basis point reduction in the prime rate during the second half of 2025 offset slightly by the increase of 25 basis points in September 2026. Accretion associated with purchase accounting fair value discounts on purchased loans was $9.5 million for the nine months ended September 30, 2026, compared to $12.2 million for the same period of 2025. Average tax-exempt investments totaled $157.6 million for the nine months ended September 30, 2026, an increase of $66.7 million from $90.9 million for the same nine-month period ended September 30, 2025, while taxable investments averaged $430.9 million at September 30, 2026, compared to $549.8 million at September 30, 2025. Average interest earning deposits increased by $58.1 million to $100.9 million at September 30, 2026, from $42.8 million at September 30, 2025. The FTE yield on investments increased 76 basis points to 3.87% for the nine months ended September 30, 2026, from 3.11% for the same nine months of 2025.

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1 See reconciliation of non-GAAP financial measures below.

Interest expense decreased $1.8 million to $68.2 million for the nine months ended September 30, 2026, compared with $70.0 million for the same period in 2025, primarily due to lower average deposit rates overall, coupled with a reduction in average small dollar time deposits, which offset net balance increases in the non-maturing deposit portfolio. These benefits were partially offset by higher average balances on borrowings and subordinated debt exceeding reductions in borrowing rates. The average rate paid on interest-bearing deposits decreased 23 basis points to 2.19% from 2.42%, reflecting lower market rates in 2026 in addition to lower costs related to interest bearing demand accounts when compared to 2025.

Average small dollar time deposits, which include brokered deposits, decreased $68.5 million to $321.3 million, for the nine months ended September 30, 2026, from $389.8 million for the nine months ended September 30, 2025. The average rate paid for small dollar time deposits decreased 53 basis points to 3.29% from 3.82% for the nine months ended September 30, 2026, and 2025, respectively, partially the result of a reduction of $50.9 million in average brokered deposits, which the Company let roll off at maturity. These higher-costing deposits were replaced with lower cost non-maturing deposits and borrowings. Average subordinated debt increased $25.9 million to $83.3 million for the nine months ended September 30, 2026, from $57.4 million for the same period in 2025, while the average rate paid on subordinated debt increased 93 basis points to 8.42% from 7.49% for the periods ended September 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 nine months ended September 30, 2026, the provision for credit losses was $3.3 million, an increase of $4.2 million from a $0.9 million benefit recorded for the same nine months of 2025. The increase in loan provisioning in the first nine months of 2026 was primarily impacted by significant loan growth, while the benefit in the first nine months of the prior year reflected reductions in non-accrual assets and declines in model loss rates.

Noninterest income was $19.1 million and $18.0 million for the nine months ended September 30, 2026, and 2025, respectively. The $1.1 million increase in noninterest income was primarily due to increases in interest rate swap income of $0.6 million, along with combined net gains of $0.5 million on the sale of investment securities available for sale, a $0.3 million gain on the sale and market value appreciation of equity securities and a $0.4 million increase in mortgage banking income, partially offset by a decrease in service charge, fee, and commission income of $0.7 million. The current nine-month period ended September 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. The comparable prior year period included a loss of $0.6 million on the sales of administrative offices, offset by gain of $0.7 million on the sale of the Company’s former corporate headquarters in Scranton, PA.

Noninterest expense increased $7.9 million to $92.2 million for the nine months ended September 30, 2026, from $84.3 million for the nine months ended September 30, 2025. This increase is primarily due to increases in salaries and employee benefits expenses, occupancy and equipment expenses, and other expenses. Salaries and employee benefits expense was $45.2 million for the nine months ended September 30, 2026, compared to $41.4 million for the same nine months in 2025. The $3.8 million increase resulted primarily from annual merit increases, staff additions and higher health insurance costs. Net occupancy and equipment expenses were $22.7 million for the first nine months of 2026, an increase of $2.6 million from $20.1 million for the same nine-month period in 2025. The increase was largely caused by higher rent expenses associated with the new corporate headquarters and increases in data processing expenses related to the implementation of an on-line account opening platform. Other expenses increased $2.6 million to $17.7 million from $15.1 million for the nine months ending September 30, 2025. This increase in other expenses includes an increase in advertising, corporate business development, and legal expenses. The efficiency ratio, a non-GAAP measure¹, was 56.10% in 2026 and 55.38% for the nine months ended September 30, 2026, and 2025, respectively.

Income tax expense was $10.7 million for the nine months ended September 30, 2026, compared to $10.3 million for the nine months ended September 30, 2025. The effective tax rate was 18.0% for the nine months ended September 30, 2026, and 17.9% in the prior year’s same nine-month period.

BALANCE SHEET REVIEW

Total loans were $4.4 billion at September 30, 2026, an increase of $60.7 million compared to $4.3 billion at June 30, 2026, and an increase of $347.1 million compared to $4.0 billion at September 30, 2025. Comparing September 30, 2026, and 2025, the Company saw strong demand in all markets for commercial and residential real estate loans, commercial and industrial loans, and municipal loans, with decreases seen in the Company’s equipment financing and indirect auto loan portfolio. Comparing September 30, 2026, to June 30, 2026, increases were observed in the commercial and industrial portfolio and in the commercial and residential real estate portfolio. Consumer loans and the equipment financing portfolios were relatively flat, while the indirect auto portfolio decreased.

Total investments were $510.2 million at September 30, 2026, compared to $529.6 million at June 30, 2026, and $610.3 million at September 30, 2025. At September 30, 2026, available for sale securities totaled $440.8 million, a decrease of $17.3 million from $458.1 million at June 30, 2026, and a decrease of $93.7 million from $534.5 million at September 30, 2025. Held to maturity securities totaled $66.7 million at September 30, 2026, a decrease of $2.1 million from $68.8 million at June 30, 2026, and a decrease of $6.6 million from $73.3 million at September 30, 2025. Due to strong loan demand, cash flows from repayments of investment securities and a portion of the proceeds from sales of investments during the first three months of 2026 were redirected and used to fund loan growth.

Total deposits were $4.7 billion at September 30, 2026, an increase of $163.3 million from $4.5 billion at June 30, 2026, and an increase of $382.4 million from $4.3 billion at September 30, 2025. Noninterest-bearing deposits increased $24.5 million to $971.0 million at September 30, 2026, from $946.5 million at June 30, 2026, and increased $59.1 million from $912.0 million at September 30, 2025. Interest-bearing deposits increased $138.7 million to $3.7 billion from $3.6 billion at June 30, 2026, and increased $323.4 million from $3.4 billion at September 30, 2025, primarily reflecting a strategic deposit growth effort which offset a decrease in brokered deposits. Brokered deposits represented 5.4% of total deposits at September 30, 2026, and 7.7% of total deposits at June 30, 2026, compared with 3.9% at September 30, 2025. Approximately 34.8% of deposits were uninsured at September 30, 2026, compared with 31.0% uninsured at June 30, 2026, and 32.3% at September 30, 2025.

The Company maintained a strong capital position at September 30, 2026. Stockholders’ equity equaled $529.3 million or $52.87 per share at September 30, 2026, compared to $536.2 million or $53.56 per share at June 30, 2026, and $509.3 million, or $50.95 per share at September 30, 2025. Stockholders’ equity was impacted by net income, offset by dividends to shareholders and an increase in accumulated other comprehensive loss primarily due to market rate adjustments related to available for sale investments.

Tangible book value, a non-GAAP measure¹ was $42.95 per share at September 30, 2026, $43.51 per share at June 30, 2026, and $40.43 at September 30, 2025. The Company declared quarterly dividends of $0.625 for each quarter of 2026 and $0.6175 for the quarter ending September 30, 2025. Dividends for the year totaled $1.875 per share for 2026 and $1.853 per share for 2025.

ASSET QUALITY REVIEW

The Company experienced strong improvement in asset quality during the three- and nine-month periods of 2026. Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $10.3 million or 0.24% of loans, net and foreclosed assets, at September 30, 2026, a $4.4 million decrease compared to $14.7 million, or 0.34% of loans, net and foreclosed assets at June 30, 2026. The linked-quarter decrease was primarily due to favorable resolutions of several nonaccrual assets during the third quarter of 2026. In comparison to the prior year period, nonperforming assets decreased $6.5 million from $16.8 million, or 0.42% of loans, net and foreclosed assets at September 30, 2025, primarily reflecting a $4.3 million reduction in nonaccrual loans and the final resolution of a foreclosed property. Nonperforming assets represented 0.19% of total assets at September 30, 2026, compared to 0.27% at June 30, 2026, and 0.33% at September 30, 2025.

During the three months ended September 30, 2026, net charge-offs were $0.4 million and the benefit for credit losses was $1.1 million, compared to net charge-offs of $0.2 million and a benefit for credit losses of $0.8 million for the same period of 2025. For the nine months ended September 30, 2026, net charge-offs were $1.6 million and the provision for credit losses was $3.3 million, compared to net charge-offs of $1.1 million and a benefit for credit losses of $0.9 million for the same nine months of 2025. The allowance for credit losses equaled $40.8 million or 0.93% of loans, net, as of September 30, 2026, compared to $42.3 million or 0.98% of loans, net, as of June 30, 2026, and $39.8 million or 0.99% of loans, net as of September 30, 2025.

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1 See reconciliation of non-GAAP financial measures below.

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.

[TABULAR MATERIAL FOLLOWS]

Summary Data Peoples Financial Services Corp. Three Quarter and Nine-Month Trend (Unaudited) (In thousands, except share and per share data)
			Three Months Ended											Nine Months Ended
		Sept 30				June 30				Sept 30			Sept 30				Sept 30
		2026				2026				2025			2026				2025
Key performance data:
Share and per share amounts:
Net income - diluted		$	1.90			$	1.48			$	1.51		$	4.85			$	4.69
Core net income (1)		$	1.90			$	1.48			$	1.51		$	4.81			$	4.71
Cash dividends declared		$	0.6250			$	0.6250			$	0.6175		$	1.8750			$	1.8525
Book value		$	52.87			$	53.56			$	50.95		$	52.87			$	50.95
Tangible book value (1)		$	42.95			$	43.51			$	40.43		$	42.95			$	40.43
Market value:
High		$	73.37			$	67.75			$	53.69		$	73.37			$	54.20
Low		$	64.85			$	52.63			$	46.90		$	47.39			$	38.90
Closing		$	67.36			$	66.37			$	48.61		$	67.36			$	48.61
Market capitalization		$	674,423			$	664,388			$	485,837		$	674,423			$	485,837
Common shares outstanding			10,012,216				10,010,367				9,994,595			10,012,216				9,994,595
Selected ratios:
Return on average stockholders’ equity (2)			14.07	%			11.10	%			12.02	%		12.16	%			12.86	%
Core return on average stockholders’ equity (1)(2)			14.07	%			11.10	%			12.03	%		12.06	%			12.91	%
Return on average tangible stockholders’ equity (1)(2)			17.28	%			13.70	%			15.24	%		15.01	%			16.47	%
Core return on average tangible stockholders’ equity (1)(2)			17.28	%			13.70	%			15.25	%		14.88	%			16.54	%
Return on average assets (2)			1.41	%			1.13	%			1.19	%		1.23	%			1.25	%
Core return on average assets (1)(2)			1.41	%			1.13	%			1.19	%		1.22	%			1.26	%
Stockholders’ equity to total assets			9.52	%			9.86	%			9.87	%		9.52	%			9.87	%
Efficiency ratio (1)(3)			56.12	%			55.16	%			56.52	%		56.10	%			55.38	%
Nonperforming assets to loans, net, and foreclosed assets			0.24	%			0.34	%			0.42	%		0.24	%			0.42	%
Nonperforming assets to total assets			0.19	%			0.27	%			0.33	%		0.19	%			0.33	%
Net charge-offs to average loans, net (2)			0.04	%			0.04	%			0.02	%		0.05	%			0.04	%
Allowance for credit losses to loans, net			0.93	%			0.98	%			0.99	%		0.93	%			0.99	%
Interest earning assets yield (FTE) (4)			5.71	%			5.64	%			5.56	%		5.62	%			5.58	%
Cost of funds			2.49	%			2.40	%			2.64	%		2.43	%			2.61	%
Net interest spread (FTE) (4)			3.22	%			3.24	%			2.92	%		3.19	%			2.97	%
Net interest margin (FTE) (1)(4)			3.80	%			3.82	%			3.54	%		3.77	%			3.58	%

(1)	See Reconciliation of Non-GAAP Financial Measures below.
(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											Nine Months Ended
		Sept 30				June 30			Sept 30					Sept 30				Sept 30
		2026				2026			2025					2026				2025
Interest income:
Interest and fees on loans:
Taxable		$	62,663			$	59,483		$	57,621			$	178,462			$	170,292
Tax-exempt			2,345				2,155			2,151				6,568				6,698
Interest and dividends on investment securities:
Taxable			3,497				3,926			4,335				11,458				13,073
Tax-exempt			1,301				1,261			537				3,695				1,332
Dividends			342				305			47				906				128
Interest on interest-bearing deposits in other banks			1,308				622			473				2,823				1,402
Total interest income			71,456				67,752			65,164				203,912				192,925
Interest expense:
Interest on deposits			20,461				18,188			20,194				56,788				61,344
Interest on short-term borrowings			149				536			341				1,057				976
Interest on long-term debt			1,633				1,500			1,509				4,537				3,897
Interest on subordinated debt			1,749				1,750			1,748				5,248				3,217
Interest on junior subordinated debt			177				174			189				524				563
Total interest expense			24,169				22,148			23,981				68,154				69,997
Net interest income			47,287				45,604			41,183				135,758				122,928
(Benefit) provision for credit losses			(1,148	)			3,105			(838	)			3,344				(877	)
Net interest income after (benefit) provision for credit losses			48,435				42,499			42,021				132,414				123,805
Noninterest income:
Service charges, fees, commissions and other			3,190				3,411			3,386				9,758				10,454
Merchant services income			217				489			321				886				1,136
Commissions and fees on fiduciary activities			644				588			607				1,783				1,707
Wealth management income			875				753			950				2,274				2,219
Mortgage banking income			213				302			148				756				387
Increase in cash surrender value of life insurance			525				500			543				1,522				1,604
Interest rate swap income			170				187			182				1,017				389
Net (losses) gains on equity investments			(155	)			33			(21	)			334				43
Net gains on sale of investment securities available for sale														510
Net gains (losses) on sale of fixed assets							271			(615	)			271				65
Total noninterest income			5,679				6,534			5,501				19,111				18,004
Noninterest expense:
Salaries and employee benefits expense			15,616				15,087			14,128				45,220				41,370
Net occupancy and equipment expense			7,672				7,338			7,221				22,685				20,115
Acquisition related expenses										16								236
Amortization of intangible assets			1,349				1,518			1,515				4,384				4,882
FDIC insurance and assessments			744				709			607				2,209				2,605
Other expenses			6,323				5,958			5,191				17,679				15,085
Total noninterest expense			31,704				30,610			28,678				92,177				84,293
Income before income taxes			22,410				18,423			18,844				59,348				57,516
Income tax expense			3,279				3,618			3,598				10,665				10,305
Net income		$	19,131			$	14,805		$	15,246			$	48,683			$	47,211
Other comprehensive (loss) income:
Unrealized (losses) gains on investment securities available for sale		$	(26,009	)		$	2,431		$	7,415			$	(26,961	)		$	14,846
Reclassification adjustment for net gains on available for sale securities included in net income														(510	)
Change in derivative fair value			53				80			18				289				(114	)
Income tax (benefit) expense related to other comprehensive (loss) income			(5,691	)			551			1,621				(5,960	)			3,213
Other comprehensive (loss) income, net of income tax (benefit) expense			(20,265	)			1,960			5,812				(21,222	)			11,519
Comprehensive (loss) income		$	(1,134	)		$	16,765		$	21,058			$	27,461			$	58,730
Share and per share amounts:
Net income - basic		$	1.91			$	1.48		$	1.53			$	4.86			$	4.72
Net income - diluted			1.90				1.48			1.51				4.85				4.69
Cash dividends declared		$	0.6250			$	0.6250		$	0.6175			$	1.8750			$	1.8525
Average common shares outstanding - basic			10,011,287				10,010,529			9,994,629				10,008,270				9,994,175
Average common shares outstanding - diluted			10,050,247				10,036,037			10,086,915				10,042,560				10,070,947

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Three Months Ended
		September 30, 2026									June 30, 2026									September 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		$	4,043,501		$	62,663		6.15	%		$	3,973,583		$	59,483		6.00	%		$	3,736,269		$	57,621		6.12	%
Tax-exempt			280,483			2,968		4.20				263,731			2,728		4.15				269,757			2,722		4.00
Total loans			4,323,984			65,631		6.02				4,237,314			62,211		5.89				4,006,026			60,343		5.98
Investments:
Taxable			409,260			3,839		3.72				422,646			4,231		4.02				553,151			4,382		3.14
Tax-exempt			162,824			1,647		4.01				160,117			1,596		4.00				98,608			680		2.74
Total investments			572,084			5,486		3.80				582,763			5,827		4.01				651,759			5,062		3.08
Interest-earning deposits			137,421			1,308		3.78				67,064			622		3.72				42,884			473		4.38
Total earning assets			5,033,489			72,425		5.71	%			4,887,141			68,660		5.64	%			4,700,669			65,878		5.56	%
Less: allowance for credit losses			43,258									40,521									41,576
Other assets			410,309									401,762									408,385
Total assets		$	5,400,540								$	5,248,382								$	5,067,478
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Money market accounts		$	1,029,932		$	6,911		2.66	%		$	1,034,838		$	6,673		2.59	%		$	986,100		$	7,542		3.03	%
Interest-bearing demand and NOW accounts			1,213,719			5,906		1.93				1,213,141			5,825		1.93				1,181,655			6,271		2.11
Savings accounts			508,203			498		0.39				511,202			466		0.37				496,256			389		0.31
Time deposits less than $100			402,067			3,509		3.46				290,045			2,297		3.18				341,825			2,923		3.39
Time deposits $100 or more			430,194			3,637		3.35				365,167			2,927		3.22				347,723			3,069		3.50
Total interest-bearing deposits			3,584,115			20,461		2.26				3,414,393			18,188		2.14				3,353,559			20,194		2.39
Short-term borrowings			15,816			149		3.74				56,166			536		3.83				29,208			341		4.63
Long-term debt			158,373			1,633		4.09				145,346			1,500		4.14				129,524			1,509		4.62
Subordinated debt			83,440			1,749		8.32				83,334			1,750		8.42				83,149			1,748		8.34
Junior subordinated debt			8,205			177		8.56				8,177			174		8.54				8,098			189		9.26
Total borrowings			265,834			3,708		5.53				293,023			3,960		5.42				249,979			3,787		6.01
Total interest-bearing liabilities			3,849,949			24,169		2.49	%			3,707,416			22,148		2.40	%			3,603,538			23,981		2.64	%
Noninterest-bearing deposits			943,352									940,512									905,385
Other liabilities			67,964									65,432									55,530
Stockholders’ equity			539,275									535,022									503,025
Total liabilities and stockholders’ equity		$	5,400,540								$	5,248,382								$	5,067,478
Net interest income/spread					$	48,256		3.22	%					$	46,512		3.24	%					$	41,897		2.92	%
Net interest margin								3.80	%								3.82	%								3.54	%
Tax-equivalent adjustments:
Loans					$	623								$	573								$	571
Investments						346									335									143
Total adjustments					$	969								$	908								$	714

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

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Nine Months Ended
		September 30, 2026								September 30, 2025
		Average			Interest Income/			Yield/		Average			Interest Income/			Yield/
		Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,959,564		$	178,462		6.03	%	$	3,714,153		$	170,292		6.13	%
Tax-exempt			267,733			8,314		4.15			277,533			8,478		4.08
Total loans			4,227,297			186,776		5.91			3,991,686			178,770		5.99
Investments:
Taxable			430,876			12,364		3.84			549,818			13,201		3.21
Tax-exempt			157,595			4,677		3.97			90,902			1,686		2.48
Total investments			588,471			17,041		3.87			640,720			14,887		3.11
Interest-earning deposits			100,859			2,823		3.74			42,798			1,402		4.38
Total earning assets			4,916,627			206,640		5.62	%		4,675,204			195,059		5.58	%
Less: allowance for credit losses			41,097								41,830
Other assets			404,000								399,098
Total assets		$	5,279,530							$	5,032,472
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Money market accounts		$	1,028,456		$	20,055		2.61	%	$	953,679		$	21,104		2.96	%
Interest-bearing demand and NOW accounts			1,216,929			17,669		1.94			1,191,733			18,568		2.08
Savings accounts			507,872			1,385		0.36			498,998			1,127		0.30
Time deposits less than $100			321,281			7,915		3.29			389,807			11,142		3.82
Time deposits $100 or more			393,232			9,764		3.32			353,753			9,403		3.55
Total interest-bearing deposits			3,467,770			56,788		2.19			3,387,970			61,344		2.42
Short-term borrowings			36,968			1,057		3.82			28,357			976		4.60
Long-term debt			145,992			4,537		4.15			109,569			3,897		4.76
Subordinated debt			83,333			5,248		8.42			57,440			3,217		7.49
Junior subordinated debt			8,178			524		8.57			8,075			563		9.32
Total borrowings			274,471			11,366		5.54			203,441			8,653		5.69
Total interest-bearing liabilities			3,742,241			68,154		2.43	%		3,591,411			69,997		2.61	%
Noninterest-bearing deposits			937,900								892,661
Other liabilities			64,147								57,466
Stockholders’ equity			535,242								490,934
Total liabilities and stockholders’ equity		$	5,279,530							$	5,032,472
Net interest income/spread					$	138,486		3.19	%				$	125,062		2.97	%
Net interest margin								3.77	%							3.58	%
Tax-equivalent adjustments:
Loans					$	1,746							$	1,780
Investments						982								354
Total adjustments					$	2,728							$	2,134

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)
		Sept 30			June 30			Sept 30
At period end		2026			2026			2025
Assets:
Cash and due from banks		$	76,557		$	74,930		$	62,133
Interest-bearing balances in other banks			228,404			181,320			117,790
Investment securities:
Available for sale			440,827			458,144			534,521
Held to maturity			66,739			68,723			73,286
Equity investments at fair value			2,592			2,748			2,473
Total investments			510,158			529,615			610,280
Loans held for sale			1,412			718			816
Loans			4,363,480			4,302,821			4,016,367
Less: allowance for credit losses			40,780			42,311			39,843
Net loans			4,322,700			4,260,510			3,976,524
Goodwill			75,986			75,986			75,986
Premises and equipment, net			88,635			79,523			77,009
Bank owned life insurance			83,644			83,124			88,175
Deferred tax assets			30,589			25,905			30,025
Accrued interest receivable			18,316			17,770			16,995
Other intangible assets, net			23,254			24,622			29,239
Other assets			99,655			86,523			74,664
Total assets		$	5,559,310		$	5,440,546		$	5,159,636
Liabilities:
Deposits:
Noninterest-bearing		$	971,070		$	946,528		$	912,044
Interest-bearing			3,701,067			3,562,324			3,377,687
Total deposits			4,672,137			4,508,852			4,289,731
Short-term borrowings			19,720			85,331			76,310
Long-term debt			160,139			154,472			137,029
Subordinated debt			83,494			83,392			83,111
Junior subordinated debt			8,223			8,194			8,114
Accrued interest payable			8,619			4,727			7,976
Other liabilities			77,678			59,393			48,105
Total liabilities			5,030,010			4,904,361			4,650,376
Stockholders’ equity:
Common stock			20,057			20,053			20,015
Capital surplus			251,720			251,224			250,735
Retained earnings			303,436			290,556			267,686
Accumulated other comprehensive loss			(45,913)			(25,648)			(29,176)
Total stockholders’ equity			529,300			536,185			509,260
Total liabilities and stockholders’ equity		$	5,559,310		$	5,440,546		$	5,159,636
Book value per common share		$	52.87		$	53.56		$	50.95
Tangible book value per common share (1)		$	42.95		$	43.51		$	40.43

(1)	See Reconciliation of Non-GAAP Financial Measures below.

Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands)
		Sept 30			June 30			Sept 30
At period end		2026			2026			2025
Commercial and industrial		$	729,735		$	712,705		$	664,615
Municipal			205,792			200,552			196,469
Real estate
Commercial			2,512,967			2,490,510			2,278,746
Residential			658,698			640,000			588,519
Total real estate			3,171,665			3,130,510			2,867,265
Consumer
Indirect auto			81,023			82,721			100,298
Consumer other			16,172			16,775			14,212
Total consumer			97,195			99,496			114,510
Equipment financing			159,093			159,558			173,508
Total		$	4,363,480		$	4,302,821		$	4,016,367

		Sept 30			June 30			Sept 30
At period end		2026			2026			2025
Nonperforming assets:
Nonaccrual/restructured loans		$	10,069		$	13,667		$	14,386
Accruing loans past due 90 days or more			230			451			886
Foreclosed assets						630			1,541
Total nonperforming assets		$	10,299		$	14,748		$	16,813

			Sept 30				June 30			Sept 30
Three months ended			2026				2026			2025
Allowance for credit losses:
Beginning balance		$	42,311			$	39,586		$	40,890
Charge-offs			541				697			489
Recoveries			158				317			280
(Benefit) provision for credit losses			(1,148	)			3,105			(838	)
Ending balance		$	40,780			$	42,311		$	39,843

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
		Three Months Ended									Nine Months Ended
		Sept 30			June 30			Sept 30			Sept 30			Sept 30
		2026			2026			2025			2026			2025
Core net income per share:
Net income GAAP		$	19,131		$	14,805		$	15,246		$	48,683		$	47,211
Adjustments:
Less: net gains on sale of available for sale securities												510
Add: net gains on sale of available for sale securities tax adjustment (1)												112
Add: acquisition related expenses									16						236
Less: acquisition related expenses tax adjustment (1)									3						51
Core net income		$	19,131		$	14,805		$	15,259		$	48,285		$	47,396
Average common shares outstanding - diluted			10,050,247			10,036,037			10,086,915			10,042,560			10,070,947
Core net income per diluted share		$	1.90		$	1.48		$	1.51		$	4.81		$	4.71
Tangible book value:
Total stockholders’ equity		$	529,300		$	536,185		$	509,260		$	529,300		$	509,260
Less: goodwill			75,986			75,986			75,986			75,986			75,986
Less: other intangible assets, net			23,254			24,622			29,239			23,254			29,239
Total tangible stockholders’ equity		$	430,060		$	435,577		$	404,035		$	430,060		$	404,035
Common shares outstanding			10,012,216			10,010,367			9,994,595			10,012,216			9,994,595
Tangible book value per share		$	42.95		$	43.51		$	40.43		$	42.95		$	40.43
Core return on average stockholders’ equity:
Net income GAAP		$	19,131		$	14,805		$	15,246		$	48,683		$	47,211
Adjustments:
Less: net gains on sale of available for sale securities												510
Add: net gains on sale of available for sale securities tax adjustment (1)												112
Add: acquisition related expenses									16						236
Less: acquisition related expenses tax adjustment (1)									3						51
Core net income		$	19,131		$	14,805		$	15,259		$	48,285		$	47,396
Average stockholders’ equity		$	539,275		$	535,022		$	503,025		$	535,242		$	490,934
Core return on average stockholders’ equity			14.07	%		11.10	%		12.03	%		12.06	%		12.91	%
Return on average tangible stockholders' equity:
Net income GAAP		$	19,131		$	14,805		$	15,246		$	48,683		$	47,211
Average stockholders’ equity		$	539,275		$	535,022		$	503,025		$	535,242		$	490,934
Less: goodwill and intangibles			99,974			101,482			106,111			101,526			107,736
Average tangible stockholders’ equity		$	439,301		$	433,540		$	396,914		$	433,716		$	383,198
Return on average tangible stockholders’ equity			17.28	%		13.70	%		15.24	%		15.01	%		16.47	%
Core return on average tangible stockholders’ equity:
Net income GAAP		$	19,131		$	14,805		$	15,246		$	48,683		$	47,211
Adjustments:
Less: net gains on sale of available for sale securities												510
Add: net gains on sale of available for sale securities tax adjustment (1)												112
Add: acquisition related expenses									16						236
Less: acquisition related expenses tax adjustment (1)									3						51
Core net income		$	19,131		$	14,805		$	15,259		$	48,285		$	47,396
Average stockholders’ equity		$	539,275		$	535,022		$	503,025		$	535,242		$	490,934
Less: goodwill and intangibles			99,974			101,482			106,111			101,526			107,736
Average tangible stockholders’ equity		$	439,301		$	433,540		$	396,914		$	433,716		$	383,198
Core return on average tangible stockholders’ equity			17.28	%		13.70	%		15.25	%		14.88	%		16.54	%
Core return on average assets:
Net income GAAP		$	19,131		$	14,805		$	15,246		$	48,683		$	47,211
Adjustments:
Less: net gains on sale of available for sale securities												510
Add: net gains on sale of available for sale securities tax adjustment (1)												112
Add: acquisition related expenses									16						236
Less: acquisition related expenses tax adjustment (1)									3						51
Core net income		$	19,131		$	14,805		$	15,259		$	48,285		$	47,396
Average assets		$	5,400,540		$	5,248,382		$	5,067,478		$	5,279,530		$	5,032,472
Core return on average assets			1.41	%		1.13	%		1.19	%		1.22	%		1.26	%

(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 nine months ended:

			Three Months Ended											Nine Months Ended
		Sept 30				June 30				Sept 30				Sept 30				Sept 30
		2026				2026				2025				2026				2025
Interest income (GAAP)		$	71,456			$	67,752			$	65,164			$	203,912			$	192,925
Adjustment to FTE			969				908				714				2,728				2,134
Interest income adjusted to FTE (non-GAAP)			72,425				68,660				65,878				206,640				195,059
Interest expense			24,169				22,148				23,981				68,154				69,997
Net interest income adjusted to FTE (non-GAAP)		$	48,256			$	46,512			$	41,897			$	138,486			$	125,062

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

		Three Months Ended														Nine Months Ended
		Sept 30					June 30				Sept 30					Sept 30				Sept 30
		2026					2026				2025					2026				2025
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)		$	31,704				$	30,610			$	28,678				$	92,177			$	84,293
Less: amortization of intangible assets expense			1,349					1,518				1,515					4,384				4,882
Less: acquisition related expenses												16									236
Adjusted noninterest expense (non-GAAP)			30,355					29,092				27,147					87,793				79,175
Net interest income (GAAP)			47,287					45,604				41,183					135,758				122,928
Plus: taxable equivalent adjustment			969					908				714					2,728				2,134
Noninterest income (GAAP)			5,679					6,534				5,501					19,111				18,004
Less: net (losses) gains on equity securities			(155	)				33				(21	)				334				43
Less: net gains on sale of investment securities available for sale																	510
Less: net gains (losses) on sale of fixed assets								271				(615	)				271				65
Net interest income (FTE) plus noninterest income (non-GAAP)		$	54,090				$	52,742			$	48,034				$	156,482			$	142,958
Efficiency ratio (non-GAAP)			56.12		%			55.16	%			56.52		%			56.10	%			55.38	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261030159623/en/

MEDIA/INVESTORS, James M. Bone, Jr., CPA, Executive Vice President and Chief Financial Officer, 570.348.6419 or james.bone@psbt.com

Source: Peoples Financial Services Corp.

Key Terms

roaa financial

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

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.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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non-gaap financial

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.

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net interest margin financial

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.

fully taxable equivalent financial

A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.