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

Insights

Bank financial analyst

Peoples delivered a materially improved quarter year‑over‑year with positive profitability and stronger capital metrics, though some efficiency and funding costs warrant monitoring.

On a business level, Peoples Financial Services Corp. reported quarterly net income of $15.2 million ($1.51 per diluted share) for the quarter ended September 30, 2025, reversing a loss a year earlier and producing year‑to‑date net income of $47.2 million ($4.69 per diluted share). Key drivers disclosed include higher net interest income and noninterest income, lower provision for credit losses (a credit of $0.8 million in the quarter versus a $14.5 million expense prior year), and balance sheet growth tied to the completed July 1, 2024 merger. Asset quality metrics improved with non‑performing assets to total assets at 0.33%, and book value per share rose to $50.95 with tangible book value at $40.43.

Dependencies and near‑term risks are factual and explicit: the quarter included a $0.6 million pre‑tax loss on the pending sale of administrative properties and higher occupancy costs from the move to a new headquarters; the efficiency ratio widened to 56.52% and subordinated debt issuance raised average subordinated cost to 8.34% for the quarter. Funding mix shifted toward more noninterest deposits and lower brokered deposits, while borrowing costs rose due to new subordinated debt. These items temper margin and expense trends despite higher FTE net interest income and a NIM of 3.54%.

Concrete items to watch over the next 1–12 months include realized gains or losses on the pending property sales and whether occupancy costs normalize after the headquarters move, the run‑rate for the efficiency ratio versus the reported 56.52%, quarterly trends in the provision for credit losses and nonperforming assets, and the cost and composition of borrowings given the recent subordinated issuance; review results each quarter to assess whether improvement in core earnings sustains under current funding costs.

MOOSIC, Pa., Oct. 30, 2025 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples" or the "Company") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the "Bank"), today reported unaudited financial results at and for the three and nine months ended September 30, 2025.  

Peoples reported net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025, compared to net income of $17.0 million, or $1.68 per diluted share for the three months ended June 30, 2025 and a net loss of $4.3 million, or $0.43 per diluted share for the three months ended September 30, 2024.  Return on average assets ("ROAA") and return on average equity ("ROAE") on an annualized basis for the three months ended September 30, 2025, was 1.19% and 12.02% compared to 1.36% and 13.87% for the three months ended June 30, 2025, and (0.33)% and (3.58)% for the three months ended September 30, 2024. Net income in the current quarter was negatively impacted by the recognition of a $0.6 million pre-tax loss on the pending sale of several administrative properties along with higher occupancy expenses associated with the Company's transition into its new headquarters. Net income in the third quarter of 2024 included $9.7 million in acquisition-related expenses.

For the nine months ended September 30, 2025, net income was $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the comparable period of 2024. The increase in net income for the current year to date period of $44.8 million was due primarily to higher net interest income and noninterest income, and a lower provision for credit losses which more than offset an increase in noninterest expenses.  On July 1, 2024, the Company completed its merger with FNCB Bancorp, Inc. ("FNCB," such merger the "FNCB merger").  Higher levels of interest-earning assets, higher transaction volumes and purchase accounting related accretion resulting from the FNCB merger resulted in the increase in net interest income and noninterest income when compared to the prior year period.

"We are extremely pleased with another strong quarter driven by disciplined credit quality and balance sheet management," stated Gerard A. Champi, Chief Executive Officer.  "We are building for the future with a focus on efficiency, enhanced customer service and long-term growth as we centralize operations in our new corporate headquarters."

The Company's consolidated financial results for any periods ended or including periods prior to July 1, 2024, do not reflect the financial results of FNCB and its subsidiaries. 

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

NOTABLES IN THE QUARTER

• Non-performing assets to total assets improved to 0.33% at September 30, 2025 compared to 0.34% at June 30, 2025 and 0.45% at December 31, 2024, and non-performing assets to total loans, net and foreclosed assets improved to 0.42% at September 30, 2025 compared to 0.44% at June 30, 2025 and 0.58% at December 31, 2024.
• ROAE on an annualized basis was 12.02% for the three months ended September 30, 2025 compared to 13.87% for the three months ended June 30, 2025, and (3.58)% for the three months ended September 30, 2024.
• ROAA on an annualized basis was 1.19% for the three months ended September 30, 2025 compared to 1.36% for the three months ended June 30, 2025, and (0.33)% for the three months ended September 30, 2024.
• Book value per common share at September 30, 2025 increased to $50.95 as compared to $49.44 and $47.53 at June 30, 2025, and September 30, 2024, respectively.
• Tangible book value per common share, a non-GAAP measure¹, increased to $40.43 on September 30, 2025, compared to $38.75 and $36.24 at June 30, 2025, and September 30, 2024, respectively.
• Loans increased $18.8 million, or 1.9%, on an annualized basis during the three months ended September 30, 2025.
• The Company completed its move to new corporate headquarters in Moosic, PA.

INCOME STATEMENT REVIEW

• Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure¹, for the three months ended September 30, 2025, was 3.54%, an increase of 28 basis points compared to 3.26% for the three months ended September 30, 2024.
• The tax-equivalent yield on interest-earning assets, a non-GAAP measure¹, decreased 7 basis points to 5.56% for the three months ended September 30, 2025, from 5.63% for the three months ended September 30, 2024.
• The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 28 basis points to 2.64% for the three months ended September 30, 2025, when compared to 2.89% for the three months ended September 30, 2024.
• The cost of interest-bearing deposits decreased 37 basis points for the three months ended September 30, 2025 to 2.39% from 2.76% in the three months ended September 30, 2024.
• The cost of total deposits, which includes the impact of noninterest-bearing deposits was 1.88% for the three months ended September 30, 2025, a decrease of 45 basis points from 2.33% for the three months ended September 30, 2024.
• The efficiency ratio¹ was 56.52% for the three months ended September 30, 2025, compared to 53.14% for the three months ended September 30, 2024.

Third Quarter 2025 Results – Comparison to Third Quarter 2024

Net interest income on an FTE basis for the three months ended September 30, 2025 increased $1.9 million to $41.9 million from $40.0 million for the three months ended September 30, 2024.  The increase in FTE net interest income was due to a $3.1 million decrease in tax-equivalent interest income, a non-GAAP measure¹, that was more than offset by a $5.0 million decrease in interest expense.

The reduction in FTE interest income resulted primarily from decreases in average loan, investment and federal funds sold balances, coupled with a reduction in accretion associated with purchase accounting fair value discounts.  Average loans, net, decreased $62.6 million for the three months ended September 30, 2025, compared to the prior year three-month period ended September 30, 2024.  Average investments totaled $651.8 million in the three months ended September 30, 2025, and $700.6 million in the three months ended September 30, 2024, a decrease of $48.8 million.  Average federal funds sold decreased $58.7 million to $33.5 million for the three months ended September 30, 2025, from $92.2 million for the three months ended September 30, 2024.  Accretion associated with purchase accounting fair value discounts on purchased loans was $3.7 million for the three months ended September 30, 2025, a decrease of $1.0 million from $4.7 million for the same period of 2024.

The decrease in interest expense, comparing the three month periods ended September 30, 2025, and September 30, 2024, was due primarily to decreases in average deposit rates, coupled with a reduction in higher cost brokered deposits, partially offset by increases in average volumes and rates on borrowed funds, which were largely related to the net new issuance of subordinated debt in the second quarter of 2025. Average interest-bearing deposits decreased $448.8 million and represented 78.7% of total average deposits for the three months ended September 30, 2025, as compared to 84.2% for the three months ended September 30, 2024.  Average brokered deposits decreased $210.9 million to $178.6 million for the three months ended September 30, 2025, from $389.5 million for the comparable three-month period of 2024. Average noninterest bearing deposits increased $191.6 million and represented 21.3% of total average deposits in the three months ended September 30, 2025, as compared to 15.8% in the three months ended September 30, 2024.

Average total borrowings increased $53.3 million for the three months ended September 30, 2025, as compared to the same period of 2024, which was primarily due to the new issuance of subordinated debt which occurred in the second quarter of 2025.  Additionally, the Company's cost of borrowings increased 67 basis points to 6.01% for the three months ended September 30, 2025, compared to 5.34% for the same three months of 2024. In June 2025, the Company called and redeemed $33 million of its subordinated notes due in June 2030 that repriced to 9.08% and issued $85 million in fixed-to-floating rate subordinated notes due June 2035 at an initial fixed rate through June 2030 of 7.75%.

Short-term borrowings averaged $29.2 million for the three-month period ended September 30, 2025, at an average cost of 4.63% compared to $43.9 million at an average cost of 4.98% during the comparable three-month period in 2024.  Long-term debt averaged $129.5 million for the three-month period ended September 30, 2025, at an average cost of 4.62% compared to $111.8 million at an average cost of 4.94% for the three months ended September 30, 2024. Subordinated debt averaged $83.1 million for the three-month period ended September 30, 2025, at an average cost of 8.34% compared to $33.0 million at an average cost of 5.34% for the three months ended September 30, 2024.

For the three months ended September 30, 2025, $0.8 million was credited to the provision for credit losses compared to an expense of $14.5 million in the prior year's same quarter. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The provision for the third quarter of 2024 included a non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger. 

Noninterest income was $5.5 million and $5.7 million for the three months ended September 30, 2025, and 2024, respectively.  The current year quarter includes a $0.6 million loss on the pending sale of administrative offices, as the Company has commenced consolidating operations to a new corporate center.  The prior year quarter included gains of $0.2 million on equity investments versus a negligible loss in the current year's quarter.  Wealth management income increased $0.2 million and interest rate swap income increased $0.2 million due to an increase in transactions.

Noninterest expense decreased $6.8 million to $28.7 million for the three months ended September 30, 2025, from $35.5 million for the three months ended September 30, 2024, which primarily reflected a reduction in acquisition-related expenses partially offset by increases in salaries and employee benefits, occupancy and equipment expenses and other expenses. Acquisition-related expenses were $9.7 million in the quarter ended September 30, 2024, with only negligible expenses in the current year's quarter. Salaries and employee benefits increased $0.9 million to $14.1 million for the three months ended September 30, 2025 from $13.2 million for the same three months of 2024 due primarily to higher incentive compensation accruals.  Net occupancy and equipment expenses increased $0.8 million from the prior year's quarter, which included higher lease and maintenance expenses.  Other expenses increased $1.4 million to $5.2 million for the quarter ending September 30, 2025, from $3.8 million for the prior year's quarter. The increase in other expenses was primarily related to an increase in the provision for unfunded commitments. The Company recorded a provision for unfunded commitments of $0.2 million in the third quarter of 2025 compared to a credit to the provision for unfunded commitments of $0.8 million for the same quarter of 2024. 

Income tax expense was $3.6 million for the three months ended September 30, 2025, compared to a benefit of $0.7 million for the three months ended September 30, 2024.  The effective tax rate was 19.1% for the three months ended September 30, 2025, and 13.2% of pre-tax loss for the three months ended September 30, 2024, respectively. 

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

Net interest income for the nine months ended September 30, 2025 increased $45.4 million to $122.9 million from $77.5 million for the nine months ended September 30, 2024. FTE net interest income, a non-GAAP measure¹, for the nine months ended September 30, 2025 increased $45.9 million to $125.0 million from $79.1 million for the nine months ended September 30, 2024. 

Tax-equivalent interest income, a non-GAAP measure¹, increased $47.7 million to $195.1 million due to higher levels of interest-earning assets such as loans and investments and an additional $7.4 million from accretion of purchase accounting marks on loans. Average loans increased $726.4 million and average investments increased $52.0 million comparing the nine months ended September 30, 2025 and 2024, primarily due to assets the Company acquired in the FNCB merger.  The tax-equivalent yield on interest-earning assets, a non-GAAP measure¹ was 5.58% for the first nine months of 2025 compared to 5.01% for the nine months ended September 30, 2024.  Loan yields increased 49 basis points to 5.99% while investment yields increased 82 basis points to 3.11% for the nine months ended September 30, 2025. 

Partially offsetting the increase in tax-equivalent interest income was a $1.8 million increase in interest expense to $70.0 million for the nine months ended September 30, 2025, from $68.2 million for the nine months ended September 30, 2024, which was primarily caused by higher volumes of interest-bearing liabilities, partially offset by a reduction in funding costs. Average interest-bearing liabilities increased $498.0 million to $3.6 billion from $3.1 billion comparing the year-to-date periods of 2025 and 2024, which reflected higher volumes of both deposits and borrowings. The cost of interest-bearing liabilities during the nine-month period ended September 30, 2025 decreased 33 basis points to 2.61% from 2.94% for the nine months ended September 30, 2024.  The cost of interest-bearing deposit products decreased 43 basis points to 2.42% for the nine months ended September 30, 2025 from 2.85% for the comparable prior year period, while borrowing costs increased 44 basis points to 5.69% from 5.25% for the nine months ended September 30, 2024. The increase in the cost of borrowed funds was largely due to the previously mentioned issuance of new subordinated debt, partially offset by a reduction in market rates for short-term borrowings.

For the nine months ended September 30, 2025, a credit to the provision for credit losses of $0.9 million was recorded compared to a prior year provision of $15.8 million. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The prior year provision included non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger.

Noninterest income was $18.0 million for the nine months ended September 30, 2025 and $12.7 million for the comparable period ended September 30, 2024.  The increase in non-interest income was attributable to the increased size and scale of the Company following the merger. Comparing the year-to-date periods of 2025 and 2024, service charges and fees increased $3.2 million. Wealth management income increased $0.7 million, BOLI cash surrender value increased $0.5 million and merchant services income increased $0.5 million.

Noninterest expense for the nine months ended September 30, 2025 was $84.3 million, an increase of $12.6 million from $71.7 million for the nine months ended September 30, 2024. Almost all noninterest expense line items increased as a result of the FNCB merger and the expanded operations of the combined Company. Salaries and employee benefits expenses increased $10.9 million compared to the year ago period due to the addition of 195 full-time employees from the FNCB merger.  Occupancy and equipment expenses were higher by $4.4 million in the current period due to increased technology costs related to system integration and increased account and transaction volumes, and higher facilities costs. Amortization of intangible assets increased $3.2 million in the nine months ended September 30, 2025, on the amortization of merger-related intangibles, primarily core deposit intangibles. Partially offsetting these increases was a decrease in merger-related expenses to $0.2 million for the nine months ended September 30, 2025 from $11.2 million for the nine months ended September 30, 2024. The efficiency ratio a non-GAAP, measure¹, improved to 55.38% for the nine months ended September 30, 2025 compared to 64.21% for the respective nine months of 2024.

The provision for income taxes for the nine months ended September 30, 2025 totaled $10.3 million and the effective tax rate was 17.9% as compared to $0.2 million and 9.1% in the prior period.  

BALANCE SHEET REVIEW

At September 30, 2025, total assets, loans, and deposits were $5.2 billion, $4.0 billion, and $4.3 billion, respectively.

Total loans, which were $4.0 billion at September 30, 2025, increased $22.9 million as compared to December 31, 2024. Increases in commercial loans and residential real estate loans were partially offset by reductions in commercial real estate, equipment financing, and indirect auto loans.

Total investments were $610.3 million at September 30, 2025, compared to $606.9 million at December 31, 2024.  At September 30, 2025, the available for sale securities totaled $534.5 million and the held to maturity securities totaled $73.3 million.  The unrealized loss on the available for sale securities decreased $14.9 million from $49.0 million at December 31, 2024, to $34.1 million at September 30, 2025.  The unrealized losses on the held to maturity portfolio totaled $9.7 million and $13.0 million at September 30, 2025, and December 31, 2024, respectively.

Total deposits decreased $117.8 million to $4.3 billion at September 30, 2025, due primarily to reductions in brokered CDs.  Noninterest-bearing deposits decreased $23.5 million to $912.0 million at September 30, 2025, from $935.5 million at December 31, 2024, and interest-bearing deposits decreased $94.3 million to $3.4 billion at September 30, 2025, from $3.5 billion at December 31, 2024. Additionally, the Company had $162.2 million and $256.4 million of longer-term brokered CDs at September 30, 2025, and December 31, 2024, respectively. As part of strategic balance sheet management initiatives, the Company reduced its higher rate brokered CD portfolio by $94.2 million during the first nine months of 2025.  

The Company's deposit base is diversified and consisted of 40.9% retail accounts, 36.4% commercial accounts, 18.9% municipal relationships and 3.8% brokered deposits at September 30, 2025.  At September 30, 2025, total uninsured deposits were approximately $1.4 billion, or 32.3% of total deposits.  Included in the uninsured total at September 30, 2025, were $398.6 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $1.4 million of affiliate company deposits. 

In addition to deposit gathering and current long-term debt, the Company has additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities.  At September 30, 2025, available borrowing capacity totaled $1.1 billion at the FHLB and $388.3 million at the Federal Reserve's Discount Window.  At September 30, 2025, the Company had $179.9 million in cash and cash equivalents, an increase of $44.1 million from $135.8 million at December 31, 2024.  For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 16.

The Company maintained its well capitalized position at September 30, 2025.  Stockholders' equity equaled $509.3 million or $50.95 per share at September 30, 2025, compared to $469.0 million or $46.94 per share at December 31, 2024.  The increase in stockholders' equity from December 31, 2024, is primarily attributable to net income less dividends to shareholders and an $11.5 million decrease to accumulated other comprehensive loss ("AOCL") resulting primarily from a reduction in the unrealized loss on available for sale securities.  The net after tax unrealized loss on available for sale securities included in AOCL at September 30, 2025, and December 31, 2024, was $26.7 million and $38.3 million, respectively.

Tangible book value, a non-GAAP measure¹, increased to $40.43 per share at September 30, 2025, from $35.88 per share at December 31, 2024.  Dividends declared for the nine months ended September 30, 2025 amounted to $1.86 per share.  

ASSET QUALITY REVIEW

Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $16.8 million or 0.42% of loans, net, and foreclosed assets at September 30, 2025, compared to $23.0 million or 0.58% of loans, net, and foreclosed assets at December 31, 2024.  As a percentage of total assets, nonperforming assets were 0.33% at September 30, 2025, compared to 0.45% at December 31, 2024.  At September 30, 2025, the Company had one foreclosed commercial property recorded at $1.5 million compared to one foreclosed residential property recorded at $27 thousand at December 31, 2024.

During the nine months ended September 30, 2025, net charge-offs totaled $1.1 million and the Company recognized a credit to the provision for credit losses of $0.9 million.  During the three months ended September 30, 2025, net charge-offs were $0.2 million and the credit to the provision for credit losses was $0.8 million.  The allowance for credit losses equaled $39.8 million or 0.99% of loans, net, at September 30, 2025, compared to $41.8 million or 1.05% of loans, net, at December 31, 2024.

_____________________________
1	See reconciliation of non-GAAP financial measures on pg.18-20.

About Peoples:

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

Safe Harbor Forward-Looking Statements:

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

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

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 [TABULAR MATERIAL FOLLOWS]

 

Summary Data Peoples Financial Services Corp. Five Quarter Trend (Unaudited) (In thousands, except share and per share data)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
		2025			2025			2025			2024			2024
Key performance data:
Share and per share amounts:
Net income (loss)		$	1.51		$	1.68		$	1.49		$	0.61		$	(0.43)
Core net income (1)		$	1.51		$	1.69		$	1.51		$	0.99		$	1.64
Core net income (PPNR) (1)		$	1.81		$	2.03		$	1.83		$	1.46		$	1.83
Cash dividends declared		$	0.62		$	0.62		$	0.62		$	0.62		$	0.62
Book value		$	50.95		$	49.44		$	48.21		$	46.94		$	47.53
Tangible book value (1)		$	40.43		$	38.75		$	37.35		$	35.88		$	36.24
Market value:
High		$	53.69		$	51.21		$	53.70		$	58.76		$	50.49
Low		$	46.90		$	40.67		$	44.47		$	44.73		$	41.44
Closing		$	48.61		$	49.37		$	44.47		$	51.18		$	46.88
Market capitalization		$	485,837		$	493,438		$	444,499		$	511,325		$	468,549
Common shares outstanding			9,994,595			9,994,696			9,995,483			9,990,724			9,994,648
Selected ratios:
Return on average stockholders' equity			12.02	%		13.87	%		12.70	%		5.07	%		(3.58)	%
Core return on average stockholders' equity (1)			12.03	%		13.92	%		12.80	%		8.31	%		13.61	%
Return on average tangible stockholders' equity (1)			15.24	%		17.73	%		16.46	%		6.62	%		(4.67)	%
Core return on average tangible stockholders' equity (1)			15.25	%		17.79	%		16.59	%		10.87	%		17.77	%
Return on average assets			1.19	%		1.36	%		1.22	%		0.47	%		(0.33)	%
Core return on average assets (1)			1.19	%		1.36	%		1.23	%		0.76	%		1.24	%
Stockholders' equity to total assets			9.87	%		9.67	%		9.64	%		9.21	%		8.86	%
Efficiency ratio (1)(2)			56.52	%		53.92	%		55.77	%		63.03	%		53.14	%
Nonperforming assets to loans, net, and foreclosed assets			0.42	%		0.44	%		0.59	%		0.58	%		0.53	%
Nonperforming assets to total assets			0.33	%		0.34	%		0.47	%		0.45	%		0.41	%
Net charge-offs to average loans, net			0.02	%		0.00	%		0.09	%		0.09	%		0.01	%
Allowance for credit losses to loans, net			0.99	%		1.02	%		1.03	%		1.05	%		0.97	%
Interest-bearing assets yield (FTE) (3)			5.56	%		5.68	%		5.50	%		5.51	%		5.63	%
Cost of funds			2.64	%		2.60	%		2.58	%		2.88	%		2.89	%
Net interest spread (FTE) (3)			2.92	%		3.08	%		2.92	%		2.62	%		2.74	%
Net interest margin (FTE) (1)(3)			3.54	%		3.69	%		3.50	%		3.25	%		3.26	%

(1)	See Reconciliation of Non-GAAP financial measures on pages 18-20.
(2)	Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment securities available for sale and net gains (losses) on sales of fixed assets.
(3)	Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.

 

Peoples Financial Services Corp. Consolidated Statements of Income (Unaudited) (In thousands, except per share data)
		Sept 30			Sept 30
Nine months ended		2025			2024
Interest income:
Interest and fees on loans:
Taxable		$	170,292		$	127,859
Tax-exempt			6,698			5,116
Interest and dividends on investment securities:
Taxable			13,073			8,561
Tax-exempt			1,332			1,153
Dividends			128			59
Interest on interest-bearing deposits in other banks			310			385
Interest on federal funds sold			1,092			2,524
Total interest income			192,925			145,657
Interest expense:
Interest on deposits			61,344			63,216
Interest on short-term borrowings			976			1,444
Interest on long-term debt			3,897			1,929
Interest on subordinated debt			3,217			1,330
Interest on junior subordinated debt			563			260
Total interest expense			69,997			68,179
Net interest income			122,928			77,478
(Credit to) provision for credit losses			(877)			15,762
Net interest income after (credit to) provision for credit losses			123,805			61,716
Noninterest income:
Service charges, fees, commissions and other			10,454			7,304
Merchant services income			1,136			598
Commissions and fees on fiduciary activities			1,707			1,717
Wealth management income			2,219			1,486
Mortgage banking income			387			263
Increase in cash surrender value of life insurance			1,604			1,116
Interest rate swap income			389			25
Net gains on equity investments			43			155
Net gains on sale of fixed assets			65			1
Total noninterest income			18,004			12,665
Noninterest expense:
Salaries and employee benefits expense			41,370			30,459
Net occupancy and equipment expense			20,115			15,745
Acquisition related expenses			236			11,210
Amortization of intangible assets			4,882			1,665
FDIC insurance and assessments			2,605			1,907
Other expenses			15,085			10,742
Total noninterest expense			84,293			71,728
Income before income taxes			57,516			2,653
Provision for income tax expense			10,305			242
Net income		$	47,211		$	2,411
Other comprehensive income:
Unrealized gains on investment securities available for sale		$	14,846		$	12,744
Reclassification adjustment for gains on available for sale securities included in net income						(1)
Change in derivative fair value			(114)			(185)
Income tax expense related to other comprehensive income			3,213			2,748
Other comprehensive income, net of income tax expense			11,519			9,810
Comprehensive income		$	58,730		$	12,221
Share and per share amounts:
Net income - basic		$	4.72		$	0.30
Net income - diluted			4.69			0.30
Cash dividends declared		$	1.86		$	1.44
Average common shares outstanding - basic			9,994,175			8,039,734
Average common shares outstanding - diluted			10,070,947			8,094,036

 

Peoples Financial Services Corp. Consolidated Statements of Income (Loss) (Unaudited) (In thousands, except per share data)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
Three months ended		2025			2025			2025			2024			2024
Interest income:
Interest and fees on loans:
Taxable		$	57,621		$	57,459		$	55,212		$	57,048		$	59,411
Tax-exempt			2,151			2,302			2,245			2,238			2,299
Interest and dividends on investment securities:
Taxable			4,335			4,604			4,134			4,359			4,739
Tax-exempt			537			399			396			397			411
Dividends			47			40			41			40			55
Interest on interest-bearing deposits in other banks			101			96			113			113			150
Interest on federal funds sold			372			435			285			1,608			1,218
Total interest income			65,164			65,335			62,426			65,803			68,283
Interest expense:
Interest on deposits			20,194			20,303			20,847			24,718			26,398
Interest on short-term borrowings			341			410			225			474			550
Interest on long-term debt			1,509			1,211			1,177			1,389			1,389
Interest on subordinated debt			1,748			1,026			443			444			443
Interest on junior subordinated debt			189			188			186			267			260
Total interest expense			23,981			23,138			22,878			27,292			29,040
Net interest income			41,183			42,197			39,548			38,511			39,243
(Credit to) provision for credit losses			(838)			(239)			200			3,369			14,458
Net interest income after (credit to) provision for credit losses			42,021			42,436			39,348			35,142			24,785
Noninterest income:
Service charges, fees, commissions and other			3,386			3,664			3,404			3,368			3,384
Merchant services income			321			584			231			298			223
Commissions and fees on fiduciary activities			607			563			537			553			649
Wealth management income			950			619			650			633			708
Mortgage banking income			148			125			114			126			84
Increase in cash surrender value of life insurance			543			535			526			456			551
Interest rate swap income (loss)			182			164			43			260			(53)
Net (losses) gains on equity investments			(21)			(7)			71			(23)			175
Net gains on sale of investment securities available for sale															1
Net (losses) gains on sale of fixed assets			(615)						680			(165)			(3)
Total noninterest income			5,501			6,247			6,256			5,506			5,719
Noninterest expense:
Salaries and employee benefits expense			14,128			13,761			13,481			15,287			13,170
Net occupancy and equipment expense			7,221			6,284			6,610			6,386			6,433
Acquisition related expenses			16			66			154			4,990			9,653
Amortization of intangible assets			1,515			1,684			1,683			1,702			1,665
FDIC insurance and assessments			607			976			1,022			1,251			809
Other expenses			5,191			5,491			4,403			5,217			3,768
Total noninterest expense			28,678			28,262			27,353			34,833			35,498
Income (loss) before income taxes			18,844			20,421			18,251			5,815			(4,994)
Income tax expense (benefit)			3,598			3,465			3,242			(272)			(657)
Net income (loss)		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale		$	7,415		$	1,859		$	5,572		$	(10,175)		$	15,167
Reclassification adjustment for gains on available for sale securities included in net income															(1)
Change in benefit plan liabilities												1,518
Change in derivative fair value			18			16			(148)			817			(1,424)
Income tax expense (benefit) related to other comprehensive (loss) income			1,621			409			1,183			(1,686)			3,008
Other comprehensive income (loss), net of income tax expense  (benefit)			5,812			1,466			4,241			(6,154)			10,734
Comprehensive income (loss)		$	21,058		$	18,422		$	19,250		$	(67)		$	6,397
Share and per share amounts:
Net income - basic		$	1.53		$	1.70		$	1.50		$	0.61		$	(0.43)
Net income - diluted			1.51			1.68			1.49			0.61			(0.43)
Cash dividends declared		$	0.62		$	0.62		$	0.62		$	0.62		$	0.62
Average common shares outstanding - basic			9,994,629			9,994,955			9,992,922			9,994,605			9,987,627
Average common shares outstanding - diluted			10,086,915			10,082,260			10,043,186			10,051,337			10,044,449

 

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Three Months Ended
		September 30, 2025									September 30, 2024
		Average			Interest Income/			Yield/			Average			Interest Income/			Yield/
		Balance			Expense			Rate			Balance			Expense			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,736,269		$	57,621		6.12	%		$	3,790,138		$	59,411		6.24	%
Tax-exempt			269,757			2,722		4.00				278,496			2,910		4.16
Total loans			4,006,026			60,343		5.98				4,068,634			62,321		6.09
Investments:
Taxable			553,151			4,382		3.14				611,032			4,794		3.12
Tax-exempt			98,608			680		2.74				89,532			520		2.31
Total investments			651,759			5,062		3.08				700,564			5,314		3.02
Interest-bearing deposits			9,441			101		4.24				10,820			150		5.55
Federal funds sold			33,443			372		4.41				92,171			1,218		5.26
Total earning assets			4,700,669			65,878		5.56	%			4,872,189			69,003		5.63	%
Less: allowance for credit losses			41,576									37,535
Other assets			408,385									456,540
Total assets		$	5,067,478		$	65,878					$	5,291,194		$	69,003
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market accounts		$	986,100		$	7,542		3.03	%		$	906,842		$	8,231		3.61	%
Interest-bearing demand and NOW accounts			1,181,655			6,271		2.11				1,414,228			6,888		1.94
Savings accounts			496,256			389		0.31				518,038			392		0.30
Time deposits less than $100			341,825			2,923		3.39				687,511			6,279		3.63
Time deposits $100 or more			347,723			3,069		3.50				275,786			4,608		6.65
Total interest-bearing deposits			3,353,559			20,194		2.39				3,802,405			26,398		2.76
Short-term borrowings			29,208			341		4.63				43,895			550		4.98
Long-term debt			129,524			1,509		4.62				111,804			1,389		4.94
Subordinated debt			83,149			1,748		8.34				33,000			443		5.34
Junior subordinated debt			8,098			189		9.26				8,000			260		12.93
Total borrowings			249,979			3,787		6.01				196,699			2,642		5.34
Total interest-bearing liabilities			3,603,538			23,981		2.64	%			3,999,104			29,040		2.89	%
Noninterest-bearing deposits			905,385									713,776
Other liabilities			55,530									96,177
Stockholders' equity			503,025									482,137
Total liabilities and stockholders' equity		$	5,067,478								$	5,291,194
Net interest income/spread					$	41,897		2.92	%					$	39,963		2.74	%
Net interest margin								3.54	%								3.26	%
Tax-equivalent adjustments:
Loans					$	571								$	611
Investments						143									109
Total adjustments					$	714								$	720

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

Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Nine Months Ended
		September 30, 2025								September 30, 2024
		Average			Interest Income/			Yield/		Average			Interest Income/			Yield/
		Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Earning assets:
Loans:
Taxable		$	3,714,153		$	170,292		6.13	%	$	3,022,988		$	127,859		5.65	%
Tax-exempt			277,533			8,478		4.08			242,293			6,476		3.57
Total loans			3,991,686			178,770		5.99			3,265,281			134,335		5.50
Investments:
Taxable			549,818			13,201		3.21			501,100			8,620		2.30
Tax-exempt			90,902			1,686		2.48			87,612			1,459		2.22
Total investments			640,720			14,887		3.11			588,712			10,079		2.29
Interest-bearing deposits			9,935			310		4.17			9,541			385		5.39
Federal funds sold			32,863			1,092		4.44			61,635			2,524		5.47
Total earning assets			4,675,204			195,059		5.58	%		3,925,169			147,323		5.01	%
Less: allowance for credit losses			41,830								27,660
Other assets			399,098								294,186
Total assets		$	5,032,472		$	195,059				$	4,191,695		$	147,323
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Money market accounts		$	953,679		$	21,104		2.96	%	$	792,391		$	22,116		3.73	%
Interest-bearing demand and NOW accounts			1,191,733			18,568		2.08			977,722			16,125		2.20
Savings accounts			498,998			1,127		0.30			450,161			947		0.28
Time deposits less than $100			389,807			11,142		3.82			475,194			19,420		5.46
Time deposits $100 or more			353,753			9,403		3.55			271,765			4,608		2.26
Total interest-bearing deposits			3,387,970			61,344		2.42			2,967,233			63,216		2.85
Short-term borrowings			28,357			976		4.60			36,349			1,446		5.31
Long-term debt			109,569			3,897		4.76			54,147			1,928		4.76
Subordinated debt			57,440			3,217		7.49			33,000			1,330		5.38
Junior subordinated debt			8,075			563		9.32			2,692			260		12.90
Total borrowings			203,441			8,653		5.69			126,188			4,964		5.25
Total interest-bearing liabilities			3,591,411			69,997		2.61	%		3,093,421			68,180		2.94	%
Noninterest-bearing deposits			892,661								650,446
Other liabilities			57,466								59,622
Stockholders' equity			490,934								388,206
Total liabilities and stockholders' equity		$	5,032,472							$	4,191,695
Net interest income/spread					$	125,062		2.97	%				$	79,143		2.07	%
Net interest margin								3.58	%							2.69	%
Tax-equivalent adjustments:
Loans					$	1,780							$	1,360
Investments						354								306
Total adjustments					$	2,134							$	1,666

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

Peoples Financial Services Corp. Details of Net Interest Income and Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
Three months ended		2025			2025			2025			2024			2024
Net interest income:
Interest income:
Loans, net:
Taxable		$	57,621		$	57,459		$	55,212		$	57,048		$	59,411
Tax-exempt			2,722			2,914			2,842			2,834			2,910
Total loans, net			60,343			60,373			58,054			59,882			62,321
Investments:
Taxable			4,382			4,644			4,175			4,399			4,794
Tax-exempt			680			505			501			502			520
Total investments			5,062			5,149			4,676			4,901			5,314
Interest on interest-bearing balances in other banks			101			96			113			113			150
Federal funds sold			372			435			285			1,608			1,218
Total interest income			65,878			66,053			63,128			66,504			69,003
Interest expense:
Deposits			20,194			20,303			20,847			24,718			26,398
Short-term borrowings			341			410			225			474			550
Long-term debt			1,509			1,211			1,177			1,389			1,389
Subordinated debt			1,748			1,026			443			444			443
Junior subordinated debt			189			188			186			267			260
Total interest expense			23,981			23,138			22,878			27,292			29,040
Net interest income		$	41,897		$	42,915		$	40,250		$	39,212		$	39,963
Loans, net:
Taxable			6.12	%		6.22	%		6.05	%		6.04	%		6.24	%
Tax-exempt			4.00	%		4.14	%		4.11	%		4.05	%		4.16	%
Total loans, net			5.98	%		6.07	%		5.92	%		5.90	%		6.09	%
Investments:
Taxable			3.14	%		3.45	%		3.05	%		3.23	%		3.12	%
Tax-exempt			2.74	%		2.33	%		2.33	%		2.29	%		2.31	%
Total investments			3.08	%		3.29	%		2.95	%		3.10	%		3.02	%
Interest-bearing balances with banks			4.24	%		4.19	%		4.09	%		4.93	%		5.55	%
Federal funds sold			4.41	%		4.46	%		4.45	%		4.94	%		5.26	%
Total interest-earning assets			5.56	%		5.68	%		5.50	%		5.51	%		5.63	%
Interest expense:
Deposits			2.39	%		2.41	%		2.46	%		2.75	%		2.76	%
Short-term borrowings			4.63	%		4.62	%		4.52	%		4.80	%		4.98	%
Long-term debt			4.62	%		4.81	%		4.88	%		4.97	%		4.94	%
Subordinated debt			8.34	%		7.40	%		5.44	%		5.35	%		5.34	%
Junior subordinated debt			9.26	%		9.34	%		9.37	%		13.23	%		12.93	%
Total interest-bearing liabilities			2.64	%		2.60	%		2.58	%		2.88	%		2.89	%
Net interest spread			2.92	%		3.08	%		2.92	%		2.62	%		2.74	%
Net interest margin			3.54	%		3.69	%		3.50	%		3.25	%		3.26	%

 

Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
At period end		2025			2025			2025			2024			2024
Assets:
Cash and due from banks		$	62,133		$	60,173		$	60,125		$	47,029		$	97,090
Interest-bearing balances in other banks			9,492			9,646			9,196			8,593			10,286
Federal funds sold			108,298			105,920			7,781			80,229			178,093
Investment securities:
Available for sale			534,521			505,181			503,043			526,329			562,486
Held to maturity			73,286			75,137			76,689			78,184			79,861
Equity investments carried at fair value			2,473			2,494			2,500			2,430			3,921
Total investments			610,280			582,812			582,232			606,943			646,268
Loans held for sale			816			547			420						803
Loans			4,016,367			3,997,525			3,991,539			3,993,505			4,069,683
Less: allowance for credit losses			39,843			40,890			41,054			41,776			39,341
Net loans			3,976,524			3,956,635			3,950,485			3,951,729			4,030,342
Goodwill			75,986			75,986			75,986			75,986			76,958
Premises and equipment, net			77,009			76,896			72,492			73,283			75,877
Bank owned life insurance			88,175			87,635			87,953			87,429			87,401
Deferred tax assets			30,025			31,647			32,628			35,688			33,078
Accrued interest receivable			16,995			15,854			16,436			15,632			17,979
Other intangible assets, net			29,239			30,778			32,488			34,197			35,907
Other assets			74,664			73,350			71,136			74,919			70,056
Total assets		$	5,159,636		$	5,107,879		$	4,999,358		$	5,091,657		$	5,360,138
Liabilities:
Deposits:
Noninterest-bearing		$	912,044		$	899,597		$	901,398		$	935,516		$	927,864
Interest-bearing			3,377,687			3,387,752			3,415,529			3,472,036			3,710,000
Total deposits			4,289,731			4,287,349			4,316,927			4,407,552			4,637,864
Short-term borrowings			76,310			76,340			14,840			15,900			37,346
Long-term debt			137,029			103,449			88,403			98,637			111,489
Subordinated debt			83,111			83,164			33,000			33,000			33,000
Junior subordinated debt			8,114			8,088			8,063			8,039			8,015
Accrued interest payable			7,976			4,640			5,439			5,503			6,829
Other liabilities			48,105			50,753			50,832			54,076			50,544
Total liabilities			4,650,376			4,613,783			4,517,504			4,622,707			4,885,087
Stockholders' equity:
Common stock			20,015			20,015			20,014			19,995			19,993
Capital surplus			250,735			250,468			250,488			250,695			250,578
Retained earnings			267,686			258,601			247,806			238,955			239,021
Accumulated other comprehensive loss			(29,176)			(34,988)			(36,454)			(40,695)			(34,541)
Total stockholders' equity			509,260			494,096			481,854			468,950			475,051
Total liabilities and stockholders' equity		$	5,159,636		$	5,107,879		$	4,999,358		$	5,091,657		$	5,360,138

 

Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
At period end		2025			2025			2025			2024			2024
Commercial
Taxable		$	597,163		$	595,042		$	570,966		$	556,630		$	616,369
Non-taxable			263,921			278,026			282,031			279,390			273,710
Total			861,084			873,068			852,997			836,020			890,079
Real estate
Commercial real estate			2,278,745			2,252,574			2,275,241			2,294,113			2,309,588
Residential			588,520			573,864			560,067			551,383			550,590
Total			2,867,265			2,826,438			2,835,308			2,845,496			2,860,178
Consumer
Indirect Auto			100,298			104,618			108,819			117,914			130,380
Consumer Other			14,212			13,929			14,209			14,955			15,580
Total			114,510			118,547			123,028			132,869			145,960
Equipment Financing			173,508			179,472			180,206			179,120			173,466
Total		$	4,016,367		$	3,997,525		$	3,991,539		$	3,993,505		$	4,069,683
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
At quarter end		2025			2025			2025			2024			2024
Nonperforming assets:
Nonaccrual/restructured loans		$	14,386		$	17,390		$	23,002		$	22,499		$	20,949
Accruing loans past due 90 days or more			886			72			655			458			569
Foreclosed assets			1,541						27			27			27
Total nonperforming assets		$	16,813		$	17,462		$	23,684		$	22,984		$	21,545
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
Three months ended		2025			2025			2025			2024			2024
Allowance for credit losses:
Beginning balance		$	40,890		$	41,054		$	41,776		$	39,341		$	23,123
Merger-related adjustments - Non PCD Loans															14,328
Merger-related adjustments - PCD Loans															1,841
Charge-offs			491			1,151			1,233			1,108			534
Recoveries			282			1,226			311			174			453
(Credit to) provision for credit losses			(838)			(239)			200			3,369			130
Ending balance		$	39,843		$	40,890		$	41,054		$	41,776		$	39,341

 

Peoples Financial Services Corp. Deposit and Liquidity Detail (Unaudited) (In thousands)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
At period end		2025			2025			2025			2024			2024
Interest-bearing deposits:
Money market accounts		$	1,026,725		$	971,136		$	967,661		$	936,239		$	1,018,575
Interest-bearing demand and NOW accounts			1,186,342			1,200,911			1,177,507			1,238,853			1,229,083
Savings accounts			493,957			500,680			502,851			492,180			509,412
Time deposits less than $250			497,131			543,257			599,127			620,725			824,791
Time deposits $250 or more			173,532			171,768			168,383			184,039			128,139
Total interest-bearing deposits			3,377,687			3,387,752			3,415,529			3,472,036			3,710,000
Noninterest-bearing deposits			912,044			899,597			901,398			935,516			927,864
Total deposits		$	4,289,731		$	4,287,349		$	4,316,927		$	4,407,552		$	4,637,864

 

			September 30, 2025
At period end			Amount		Percent of Total			Number of accounts		Average Balance
Deposit Detail:
Retail		$	1,756,627		40.9	%		94,579	$	19
Commercial			1,560,214		36.4			18,475		84
Municipal			810,678		18.9			2,512		323
Brokered			162,212		3.8			14		11,587
Total Deposits		$	4,289,731		100.0	%		115,580	$	37
Uninsured		$	1,387,652		32.3	%
Insured			2,902,079		67.7
			December 31, 2024
At period end			Amount		Percent of Total			Number of accounts		Average Balance
Deposit Detail:
Retail		$	1,779,729		40.4	%		98,583	$	18
Commercial			1,538,757		34.9			18,675		82
Municipal			832,665		18.9			2,427		343
Brokered			256,401		5.8			28		9,157
Total Deposits		$	4,407,552		100.0	%		119,713	$	37
Uninsured		$	1,381,492		31.3	%
Insured			3,026,060		68.7

 

								Total Available
At September 30, 2025			Total Available			Outstanding			for Future Liquidity
FHLB advances (1)		$	1,666,431		$	606,906		$	1,059,525
Federal Reserve - Discount Window			388,269						388,269
Correspondent bank lines of credit			18,000						18,000
Other sources of liquidity:
Brokered deposits			773,945			162,212			611,733
Unencumbered securities			184,206						184,206
Total sources of liquidity		$	3,030,851		$	769,118		$	2,261,733

(1)	Outstanding balance of FHLB advances includes letters of credit used to collateralize public fund deposits.

 

Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
Average quarterly balances		2025			2025			2025			2024			2024
Assets:
Loans, net:
Taxable		$	3,736,269		$	3,707,650		$	3,698,124		$	3,757,273		$	3,790,138
Tax-exempt			269,757			282,406			280,555			278,429			278,496
Total loans, net			4,006,026			3,990,056			3,978,679			4,035,702			4,068,634
Investments:
Taxable			553,151			540,424			555,910			541,526			611,032
Tax-exempt			98,608			86,899			87,072			87,419			89,532
Total investments			651,759			627,323			642,982			628,945			700,564
Interest-bearing balances with banks			9,441			9,186			11,197			9,116			10,820
Federal funds sold			33,443			39,084			25,979			129,517			92,171
Total interest-earning assets			4,700,669			4,665,649			4,658,837			4,803,280			4,872,189
Other assets			366,809			348,685			349,840			400,179			419,005
Total assets		$	5,067,478		$	5,014,334		$	5,008,677		$	5,203,459		$	5,291,194
Liabilities and stockholders' equity:
Deposits:
Interest-bearing		$	3,353,559		$	3,373,916		$	3,437,355		$	3,573,321		$	3,607,405
Noninterest-bearing			905,385			897,212			875,053			904,274			908,776
Total deposits			4,258,944			4,271,128			4,312,408			4,477,595			4,516,181
Short-term borrowings			29,208			35,587			20,176			39,319			43,895
Long-term debt			129,524			101,066			97,769			111,135			111,804
Subordinated debt			83,149			55,622			33,000			33,000			33,000
Junior subordinated debt			8,098			8,075			8,050			8,026			8,000
Other liabilities			55,530			52,608			58,018			56,445			96,177
Total liabilities			4,564,453			4,524,086			4,529,421			4,725,520			4,809,057
Stockholders' equity			503,025			490,248			479,256			477,939			482,137
Total liabilities and stockholders' equity		$	5,067,478		$	5,014,334		$	5,008,677		$	5,203,459		$	5,291,194

 

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
		Sept 30			June 30			Mar 31			Dec 31			Sept 30
Three months ended		2025			2025			2025			2024			2024
Core net income per share:
Net income (loss) GAAP		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Adjustments:
Add: ACL provision for FNCB acquired legacy loans															14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment															1,885
Add: Acquisition related expenses			16			66			154			4,990			9,653
Less: Acquisition related expenses tax adjustment			3			14			34			1,089			1,270
Core net income		$	15,259		$	17,008		$	15,129		$	9,988		$	16,489
Average common shares outstanding - diluted			10,086,915			10,082,260			10,043,186			10,051,337			10,044,449
Core net income per diluted share		$	1.51		$	1.69		$	1.51		$	0.99		$	1.64
Tangible book value:
Total stockholders' equity		$	509,260		$	494,096		$	481,854		$	468,950		$	475,051
Less: Goodwill			75,986			75,986			75,986			76,325			76,958
Less: Other intangible assets, net			29,239			30,778			32,488			34,197			35,907
Total tangible stockholders' equity		$	404,035		$	387,332		$	373,380		$	358,428		$	362,186
Common shares outstanding			9,994,595			9,994,696			9,995,483			9,990,724			9,994,648
Tangible book value per share		$	40.43		$	38.75		$	37.35		$	35.88		$	36.24
Core return on average stockholders' equity:
Net income (loss) GAAP		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Adjustments:
Add: ACL provision for FNCB acquired legacy loans															14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment															1,885
Add: Acquisition related expenses			16			66			154			4,990			9,653
Less: Acquisition related expenses tax adjustment			3			14			34			1,089			1,270
Core net income		$	15,259		$	17,008		$	15,129		$	9,988		$	16,489
Average stockholders' equity		$	503,025		$	490,248		$	479,256		$	477,939		$	482,137
Core return on average stockholders' equity			12.03	%		13.92	%		12.80	%		8.31	%		13.61	%
Return on average tangible stockholders' equity:
Net income (loss) GAAP		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Average stockholders' equity		$	503,025		$	490,248		$	479,256		$	477,939		$	482,137
Less: average intangibles			106,111			106,764			109,386			112,399			113,032
Average tangible stockholders' equity		$	396,914		$	383,484		$	369,870		$	365,540		$	369,105
Return on average tangible stockholders' equity			15.24	%		17.73	%		16.46	%		6.62	%		(4.67)	%
Core return on average tangible stockholders' equity:
Net income (loss) GAAP		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Adjustments:
Add: ACL provision for FNCB acquired legacy loans															14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment															1,885
Add: Acquisition related expenses			16			66			154			4,990			9,653
Less: Acquisition related expenses tax adjustment			3			14			34			1,089			1,270
Core net income		$	15,259		$	17,008		$	15,129		$	9,988		$	16,489
Average stockholders' equity		$	503,025		$	490,248		$	479,256		$	477,939		$	482,137
Less: average intangibles			106,111			106,764			109,386			112,399			113,032
Average tangible stockholders' equity		$	396,914		$	383,484		$	369,870		$	365,540		$	369,105
Core return on average tangible stockholders' equity			15.25	%		17.79	%		16.59	%		10.87	%		17.77	%
Core return on average assets:
Net income (loss) GAAP		$	15,246		$	16,956		$	15,009		$	6,087		$	(4,337)
Adjustments:
Add: ACL provision for FNCB acquired legacy loans															14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment															1,885
Add: Acquisition related expenses			16			66			154			4,990			9,653
Less: Acquisition related expenses tax adjustment			3			14			34			1,089			1,270
Core net income		$	15,259		$	17,008		$	15,129		$	9,988		$	16,489
Average assets		$	5,067,478		$	5,014,334		$	5,008,677		$	5,203,459		$	5,291,194
Core return on average assets			1.19	%		1.36	%		1.23	%		0.76	%		1.24	%
Pre-provision net revenue (PPNR) per share:
Income (Loss) before taxes (GAAP)		$	18,844		$	20,421		$	18,251		$	5,815		$	(4,994)
Add: ACL provision for FNCB acquired legacy loans															14,328
Add: (Credit to) provision for credit losses			(838)			(239)			200			3,369			130
Add: Provision for (credit to) credit losses on unfunded commitments			252			172			(202)			452			(785)
PPNR (non-GAAP)		$	18,258		$	20,354		$	18,249		$	9,636		$	8,679
Average common shares outstanding-diluted			10,086,915			10,082,260			10,043,186			10,051,337			10,044,449
PPNR per share (non-GAAP)		$	1.81		$	2.02		$	1.82		$	0.96		$	0.86
Core pre-provision net revenue (PPNR) per share:
Income (Loss) before taxes (GAAP)		$	18,844		$	20,421		$	18,251		$	5,815		$	(4,994)
Add: Acquisition related expenses			16			66			154			4,990			9,653
Add: ACL provision for FNCB acquired legacy loans															14,328
Add: (Credit to) provision for credit losses			(838)			(239)			200			3,369			130
Add: Provision for (credit to) credit losses on unfunded commitments			252			172			(202)			452			(785)
Core PPNR (non-GAAP)		$	18,274		$	20,420		$	18,403		$	14,626		$	18,332
Average common shares outstanding-diluted			10,086,915			10,082,260			10,043,186			10,051,337			10,044,449
Core PPNR per share (non-GAAP)		$	1.81		$	2.03		$	1.83		$	1.46		$	1.83

(1)	Current year quarters and fourth quarter 2024 tax adjustments use a rate of 21.8%, prior quarters use the effective tax rate for the quarter.

 

Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
		Sept 30			Sept 30
Nine months ended		2025			2024
Core net income per share:
Net income GAAP		$	47,211		$	2,411
Adjustments:
Add: ACL provision for FNCB acquired legacy loans						14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment						1,307
Add: Acquisition related expenses			236			11,210
Less: Acquisition related expenses tax adjustment			51			1,023
Core net income		$	47,396		$	25,619
Average common shares outstanding - diluted			10,070,947			8,094,036
Core net income per diluted share		$	4.71		$	3.17
Core return on average stockholders' equity:
Net income GAAP		$	47,211		$	2,411
Adjustments:
Add: ACL provision for FNCB acquired legacy loans						14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment						1,307
Add: Acquisition related expenses			236			11,210
Less: Acquisition related expenses tax adjustment			51			1,023
Core net income		$	47,396		$	25,619
Average stockholders' equity			490,934			388,206
Core return on average stockholders' equity			12.91	%		8.82	%
Return on average tangible stockholders' equity:
Net income GAAP		$	47,211		$	2,411
Average stockholders' equity			490,934			388,206
Less: average intangibles			107,736			79,924
Average tangible stockholders' equity		$	383,198		$	308,282
Return on average tangible stockholders' equity			16.47	%		1.04	%
Core return on average tangible stockholders' equity:
Net income GAAP		$	47,211		$	2,411
Adjustments:
Add: ACL provision for FNCB acquired legacy loans						14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment						1,307
Add: Acquisition related expenses			236			11,210
Less: Acquisition related expenses tax adjustment			51			1,023
Core net income		$	47,396		$	25,619
Average stockholders' equity			490,934			388,206
Less: average intangibles			107,736			79,924
Average tangible stockholders' equity		$	383,198		$	308,282
Core return on average tangible stockholders' equity			16.54	%		11.10	%
Core return on average assets:
Net income GAAP		$	47,211		$	2,411
Adjustments:
Add: ACL provision for FNCB acquired legacy loans						14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment						1,307
Add: Acquisition related expenses			236			11,210
Less: Acquisition related expenses tax adjustment			51			1,023
Core net income		$	47,396		$	25,619
Average assets			5,032,472			4,191,695
Core return on average assets			1.26	%		0.82	%
Pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)		$	57,516		$	2,653
Add: ACL provision for FNCB acquired legacy loans						14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment						1,307
Add: (Credit to) provision for credit losses			(877)			1,434
Add: (Credit to) provision for credit losses on unfunded commitments			222			(495)
PPNR (non-GAAP)		$	56,861		$	17,603
Average common shares outstanding-diluted			10,070,947			8,094,036
PPNR per share (non-GAAP)		$	5.65		$	2.17
Core pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP)		$	57,516		$	2,653
Add: ACL provision for FNCB acquired legacy loans						14,328
Add: Acquisition related expenses			236			11,210
Add: (Credit to) provision for credit losses			(877)			1,434
Add: (Credit to) provision for credit losses on unfunded commitments			222			(495)
Core PPNR (non-GAAP)		$	57,097		$	29,130
Average common shares outstanding-diluted			10,070,947			8,094,036
Core PPNR per share (non-GAAP)		$	5.67		$	3.60

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

The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three and nine months ended September 30, 2025 and 2024:

Three months ended September 30		2025			2024
Interest income (GAAP)		$	65,164		$	68,284
Adjustment to FTE			714			720
Interest income adjusted to FTE (non-GAAP)			65,878			69,004
Interest expense			23,981			29,040
Net interest income adjusted to FTE (non-GAAP)		$	41,897		$	39,964
Nine months ended September 30		2025			2024
Interest income (GAAP)		$	192,925		$	145,657
Adjustment to FTE			2,134			1,666
Interest income adjusted to FTE (non-GAAP)			195,059			147,323
Interest expense			69,997			68,179
Net interest income adjusted to FTE (non-GAAP)		$	125,062		$	79,144

The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three and nine months ended September 30, 2025 and 2024:

Three months ended September 30		2025			2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)		$	28,678		$	35,499
Less: Amortization of intangible assets expense			1,515			1,665
Less: Acquisition related expenses			16			9,653
Noninterest expense (non-GAAP)			27,147			24,181
Net interest income (GAAP)			41,183			39,244
Plus: Taxable equivalent adjustment			714			720
Noninterest income (GAAP)			5,501			5,719
Less: Net (losses) gains on equity securities			(21)			175
Less: (Losses) gains on sale of fixed assets			(615)			(3)
Net interest income (FTE) plus noninterest income (non-GAAP)		$	48,034		$	45,511
Efficiency ratio (non-GAAP)			56.52	%		53.13	%
Nine months ended September 30		2025			2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP)		$	84,293		$	71,728
Less: Amortization of intangible assets expense			4,882			1,665
Less: Acquisition related expenses			236			11,210
Noninterest expense  (non-GAAP)			79,175			58,853
Net interest income (GAAP)			122,928			77,478
Plus: Taxable equivalent adjustment			2,134			1,666
Noninterest income (GAAP)			18,004			12,665
Less: Net gains (losses) on equity securities			43			155
Less: Gains on sale of fixed assets			65			1
Net interest income (FTE) plus noninterest income (non-GAAP)		$	142,958		$	91,653
Efficiency ratio (non-GAAP)			55.38	%		64.21	%

 

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SOURCE Peoples Financial Services Corp.