Peoples Financial Services (NASDAQ: PFIS) Q2 net income declines to $14.8M

Rhea-AI Filing Summary

Peoples Financial Services Corp. reported unaudited results for the three and six months ended June 30, 2026. Net income was $14.8 million, or $1.48 per diluted share, for the quarter, down from $17.0 million, or $1.68 per diluted share, a year earlier. Six-month net income was $29.6 million, or $2.95 per diluted share, compared with $32.0 million, or $3.18 per share, in 2025. Annualized ROAA and ROAE for the quarter were 1.13% and 11.10%.

Quarterly net interest income rose to $45.6 million, helped by loan growth and higher investment income following an investment portfolio repositioning. The provision for credit losses increased to $3.1 million, reflecting significant loan growth, and noninterest expense climbed to $30.6 million, mainly from higher salaries, benefits, and occupancy costs. Total loans reached $4.3 billion and deposits $4.5 billion at June 30, 2026. Asset quality metrics remained solid, with nonperforming assets at $14.7 million, or 0.27% of total assets, and the allowance for credit losses at $42.3 million, or 0.98% of loans, net. Stockholders’ equity was $536.2 million, equal to book value of $53.56 and tangible book value of $43.51 per share.

Filing Explained

At June 30, brokered deposits were 7.7% of deposits, while one commercial relationship drove the quarter’s increase in nonperforming assets.

As a Form 8-K, this filing reports a specified material event; the company reports unaudited second-quarter and year-to-date results and its financial condition as of June 30, 2026. The new structural detail is in funding and credit exposure rather than ownership: deposits included more brokered funding, while one commercial relationship accounted for the quarter’s increase in nonperforming assets.

Brokered deposits were 7.7% of total deposits at June 30, 2026, versus 2.5% at March 31, 2026 and 4.6% a year earlier. The company also reported that approximately 31% of deposits were uninsured, so the disclosed balance sheet relies on a mix that includes both brokered and uninsured deposits.

Nonperforming assets were $14.7 million, or 0.34% of loans, net and foreclosed assets, at June 30, 2026; the filing attributes the linked-quarter increase to two loans in one commercial relationship being placed on nonaccrual status. The allowance for credit losses was $42.3 million, or 0.98% of loans, net, providing the reported reserve position against the loan book.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income Q2 2026: $14.8 million Diluted EPS Q2 2026: $1.48 Net interest income Q2 2026: $45.6 million +5 more

8 metrics

Net income Q2 2026 $14.8 million For the three months ended June 30, 2026

Diluted EPS Q2 2026 $1.48 Net income per diluted share for the quarter ended June 30, 2026

Net interest income Q2 2026 $45.6 million Quarter ended June 30, 2026

Total loans $4.3 billion Loans outstanding at June 30, 2026

Total deposits $4.5 billion Deposits at June 30, 2026

Return on average assets 1.13% Annualized ROAA for the three months ended June 30, 2026

Tangible book value per share $43.51 At June 30, 2026, non-GAAP measure

Nonperforming assets to total assets 0.27% At June 30, 2026

Key Terms

provision for credit losses, net interest margin, brokered deposits, tangible book value, +2 more

6 terms

provision for credit losses financial

"For the three months ended June 30, 2026, the provision for credit losses was $3.1 million"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

net interest margin financial

"the Company’s FTE net interest margin widened 15 basis points to 3.75% from 3.60%"

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.

brokered deposits financial

"brokered deposits represented 7.7% of total deposits at June 30, 2026"

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

tangible book value financial

"Tangible book value, a non-GAAP measure, increased to $43.51 per share at June 30, 2026"

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

nonperforming assets financial

"Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

sale/leaseback transaction financial

"a gain of $0.3 million on the sale of a branch property that was part of a sale/leaseback transaction"

Earnings Snapshot

Net income Q2 2026: $14.8 million

three and six months ended June 30, 2026

Net income Q2 2026 $14.8 million From $17.0 million in Q2 2025, a $2.2 million decrease

Diluted EPS Q2 2026 $1.48 Compared with $1.68 in Q2 2025

Net income six months 2026 $29.6 million From $32.0 million in the first six months of 2025, a $2.4 million decrease

Diluted EPS six months 2026 $2.95 Compared with $3.18 in the first six months of 2025

Net interest income six months 2026 $88.5 million Increased by $6.7 million from $81.7 million in the first six months of 2025

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Available on EDGAR 07/30/2026 - 04:15 PM Accepted by SEC EDGAR 07/30/2026 - 04:15 PM Learn about SEC filing dates

FAQ

What were Peoples Financial Services (PFIS) Q2 2026 earnings and EPS?

Peoples reported Q2 2026 net income of $14.8 million, or $1.48 per diluted share, compared with $17.0 million, or $1.68 per diluted share, for Q2 2025. For the first six months of 2026, net income was $29.6 million, or $2.95 per diluted share.

How did net interest income and margin trend for PFIS in Q2 and year-to-date 2026?

Net interest income was $45.6 million in Q2 2026, up from $42.2 million a year earlier. For the first six months, it rose to $88.5 million from $81.7 million. The fully tax-equivalent net interest margin widened to 3.82% in Q2 and 3.75% year-to-date.

What drove the higher provision for credit losses at PFIS in 2026?

The provision for credit losses was $3.1 million in Q2 2026 and $4.5 million for six months, compared with a $0.2 million quarterly benefit and a negligible $39 thousand six-month benefit in 2025. Management attributes the increase primarily to significant loan growth.

How did PFIS’s loan and deposit balances change by June 30, 2026?

Total loans reached $4.3 billion at June 30, 2026, up from $4.0 billion a year earlier. Total deposits were $4.5 billion, compared with $4.3 billion at June 30, 2025. Brokered deposits rose to 7.7% of total deposits, partly offsetting municipal deposit outflows.

What is PFIS’s current asset quality and reserve position?

Nonperforming assets were $14.7 million, or 0.27% of total assets, at June 30, 2026, down from $17.5 million, or 0.34%, a year earlier. The allowance for credit losses stood at $42.3 million, representing 0.98% of loans, net.

What capital and book value metrics did PFIS report at June 30, 2026?

Stockholders’ equity totaled $536.2 million, equal to book value of $53.56 per share at June 30, 2026, up from $49.44 a year earlier. Tangible book value per share, a non-GAAP measure, increased to $43.51 from $38.75.

0001056943false00010569432026-07-302026-07-30

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report: July 30, 2026

(Date of earliest event reported)

PEOPLES FINANCIAL SERVICES CORP.

(Exact name of registrant as specified in its charter)

001-36388

(Commission

File Number)

PA	23-2391852
(State or other jurisdiction of incorporation)	(IRS Employer of Identification No.)

30 E D Preate Drive, Moosic, Pennsylvania 18507

(Address of principal executive offices) (Zip Code)

(570) 346-7741

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

​	​	​	​	​
Title of each class:	​ ​ ​	Trading Symbol	​ ​ ​	Name of each exchange on which registered:
Common stock, $2.00 par value	​	PFIS	​	The Nasdaq Stock Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 

Emerging growth company ☐

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

​

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 Item 2.02 Results of Operations and Financial Condition.

On July 30, 2026, Peoples Financial Services Corp. issued a press release announcing unaudited results of operations for the three and six months ended June 30, 2026 and financial condition at June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are filed with this Form 8-K:

	​
Exhibit No.	​	Description
	​
99.1	​	Press release dated July 30, 2026 announcing results of operations and financial condition.

​

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2

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Exhibit Index

	​
Exhibit No.	​	Description
	​
99.1	​	Press release dated July 30, 2026 announcing results of operations and financial condition.
104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document).

​

​

​

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3

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​	​	​
​	PEOPLES FINANCIAL SERVICES CORP.
​	​
​	By:		/s/ Gerard A. Champi
​	​		Gerard A. Champi
​	​		President and Chief Executive Officer
​	​		(Principal Executive Officer)
​	​		​
​	By:		/s/James M. Bone, Jr.
​	​		James M. Bone, Jr., CPA
​	​		Executive Vice President and Chief Financial Officer
​	​		(Principal Financial Officer)

​

Date: July 30, 2026

​

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​

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Exhibit 99.1

NEWS RELEASE

TO BUSINESS EDITOR:

PEOPLES FINANCIAL SERVICES CORP.

Reports Unaudited Second Quarter and Year to Date 2026 Earnings

Moosic, PA, July 30, 2026/PRNEWSWIRE/ – Peoples Financial Services Corp. (“Peoples” or the “Company”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the “Bank”), today reported unaudited financial results at and for the three and six months ended June 30, 2026.

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

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

In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles (“GAAP”), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders’ equity and core net income, and tax-equivalent net interest income and related ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely net gains and losses on the sale of available for sale (“AFS”) investment securities and acquisition-related expenses. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions and should not be viewed as a substitute for GAAP.

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NOTABLES

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● On a linked quarter basis, total loans increased $112.6 million, or 10.8% annualized, to $4.3 billion at June 30, 2026 from $4.2 billion at March 31, 2026 and increased $305.3 million, or 7.6%, from $4.0 billion at June 30, 2025.

● On a linked quarter basis, total deposits increased $83.5 million, or 7.6% annualized to $4.5 billion at June 30, 2026 from $4.4 billion at March 31, 2026, and increased $221.5 million, or 5.2%, from $4.3 billion at June 30, 2025.

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● Book value per common share at June 30, 2026, increased to $53.56 from $49.44 at June 30, 2025. Tangible book value per common share, a non-GAAP measure¹, increased to $43.51 at June 30, 2026, compared to $38.75 at June 30, 2025.

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INCOME STATEMENT REVIEW

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● Net interest margin (“NIM”), calculated on a fully taxable equivalent (“FTE”) basis, a non-GAAP measure¹, for the three months ended June 30, 2026, improved 15 basis points to 3.82% from 3.67% for the three months ended March 31, 2026, and 13 basis points as compared to 3.69% for the three months ended June 30, 2025. For the six months ended June 30, the FTE NIM, a non-GAAP measure¹, improved 15 basis points to 3.75% in 2026 from 3.60% in 2025.

● The FTE yield on interest-earning assets, a non-GAAP measure¹, increased 13 basis points to 5.64% for the three months ended June 30, 2026, from 5.51% for the three months ended March 31, 2026, but decreased 4 basis points from 5.68% for the same three months ended June 30, 2025. For the six months ended June 30, 2026, the FTE yield on interest-earning assets, a non-GAAP measure¹, was 5.57%, a decrease of 2 basis points from 5.59% for the same period of 2025.

● The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 1 basis point to 2.40% for the three months ended June 30, 2026, from 2.41% for the three months ended March 31, 2026, and 20 basis points from 2.60% for the three months ended June 30, 2025. For the year-to-date period, the cost of funds was 2.41% in 2026, a reduction of 18 basis points compared to 2.59% for 2025.

● The cost of interest-bearing deposits decreased 2 basis points for the three months ended June 30, 2026, to 2.14% from 2.16% for the three months ended March 31, 2026, and 27 basis points from 2.41% for the three months ended June 30, 2025. For the six months ended June 30, 2026, the cost of interest-bearing deposits decreased 29 basis points to 2.15% from 2.44% for the six months of 2025.

● The cost of total deposits, which includes the impact of noninterest-bearing deposits, was 1.68% for the second quarter of 2026, a decrease of 2 basis points compared to 1.70% for the first quarter of 2026, and a decrease of 23 basis points from 1.91% for the second quarter of 2025. The cost of deposits for the six months ended June 30, 2026 was 1.69%, a decrease of 24 basis points from 1.93% for the comparable period of 2025.

● The efficiency ratio, a non-GAAP measure¹, was 55.16% for the quarter ended June 30, 2026, an increase, as compared to 53.92% for the same quarter of 2025, but an improvement as compared to 57.09% for the quarter ended March 31, 2026. For the six months ended June 30, the efficiency ratio, a non-GAAP measure¹, was 56.10% in 2026 and 54.81% in 2025.

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

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

For the three months ended June 30, 2026, the provision for credit losses was $3.1 million, compared with a benefit of $0.2 million for the same period in 2025, an increase of $3.3 million. The increase in the current quarter was

¹ See reconciliation of non-GAAP financial measures on pg.14-15.

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primarily attributable to significant loan growth, while the prior-year quarter benefited from lower specific reserves associated with reductions in nonperforming loans. On a linked quarter basis, the provision increased $1.7 million from $1.4 million, which also primarily reflected strong loan growth.

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

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

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

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

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

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

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

Total average earning assets increased $195.0 million to $4.9 billion for the six months ended June 30, 2026 from $4.7 billion for the same six months of 2025. Average taxable loans increased $214.0 million to $3.9 billion from $3.7 billion comparing the six months ended June 30, 2026, and 2025, respectively. The yield on taxable loans decreased 18 basis points to 5.96% from 6.14%, respectively, comparing the first six months of 2026 and 2025, which primarily reflected a 75-basis point reduction in the prime rate during the second half of 2025. Accretion associated with purchase accounting fair value discounts on purchased loans was $6.5 million for the six months ended June 30, 2026, compared to $8.5 million for the same period of 2025. Average tax-exempt investments totaled $155.0 million for the six months

¹ See reconciliation of non-GAAP financial measures on pg.14-15.

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ended June 30, 2026, an increase of $68.0 million from $87.0 million for the same six-month period ended June 30, 2025. The FTE yield on the tax-exempt investment securities portfolio increased 161 basis points to 3.94% for the six months ended June 30, 2026, from 2.33% for the same six months of 2025. The increase in yield was predominantly due to strategic portfolio repositioning beginning in the fourth quarter of 2025, as new purchases were added at yields higher than existing portfolio yields.

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

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

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

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

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

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

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BALANCE SHEET REVIEW

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

4

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

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

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

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

ASSET QUALITY REVIEW

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

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

¹ See reconciliation of non-GAAP financial measures on pg.14-15.

5

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.

​	​
SOURCE: Peoples Financial Services Corp.
/Contact:	MEDIA/INVESTORS, Marie L. Luciani, Investor Relations Officer, 570.346.7741 or marie.luciani@psbt.com
Co:	Peoples Financial Services Corp.
St:	Pennsylvania
In:	Fin

​

​

​

6

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]

​

7

Summary Data

Peoples Financial Services Corp.

Three Quarter and Six-Month Trend (Unaudited)

(In thousands, except share and per share data)

​

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

​

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

(2) Presented on an annualized basis.

(3) Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment securities AFS and net (losses) gains on sales of fixed assets.

(4) Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.

​

​

8

Peoples Financial Services Corp.

Consolidated Statements of Income and Comprehensive Income (Unaudited)

(In thousands, except per share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​ ​ ​

June 30

​ ​ ​

Mar 31

​ ​ ​

June 30

​

June 30

​

​

June 30

​

​

2026

​

2026

​

2025

​

2026

​

​

2025

Interest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest and fees on loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

$

59,483

​

$

56,316

​

$

57,459

​

$

115,799

​

$

112,671

Tax-exempt

​

2,155

​

2,068

​

2,302

​

4,223

​

4,547

Interest and dividends on investment securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

3,926

​

4,035

​

4,604

​

7,961

​

8,738

Tax-exempt

​

1,261

​

1,133

​

399

​

2,394

​

795

Dividends

​

305

​

259

​

40

​

564

​

81

Interest on interest-bearing deposits in other banks

​

622

​

893

​

531

​

1,515

​

929

Total interest income

​

67,752

​

​

64,704

​

​

65,335

​

​

132,456

​

​

127,761

Interest expense:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest on deposits

​

18,188

​

18,139

​

20,303

​

36,327

​

41,150

Interest on short-term borrowings

​

536

​

372

​

410

​

908

​

635

Interest on long-term debt

​

1,500

​

1,404

​

1,211

​

2,904

​

2,388

Interest on subordinated debt

​

​

1,750

​

​

1,749

​

​

1,026

​

​

3,499

​

​

1,469

Interest on junior subordinated debt

​

​

174

​

​

173

​

​

188

​

​

347

​

​

374

Total interest expense

​

22,148

​

21,837

​

23,138

​

43,985

​

46,016

Net interest income

​

45,604

​

42,867

​

42,197

​

88,471

​

81,745

Provision (benefit) for credit losses

​

3,105

​

1,387

​

(239)

​

4,492

​

(39)

Net interest income after provision (benefit) for credit losses

​

42,499

​

​

41,480

​

​

42,436

​

​

83,979

​

​

81,784

Noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Service charges, fees, commissions and other

​

3,411

​

3,157

​

3,664

​

6,568

​

7,068

Merchant services income

​

489

​

180

​

584

​

669

​

815

Commissions and fees on fiduciary activities

​

588

​

551

​

563

​

1,139

​

1,100

Wealth management income

​

753

​

646

​

619

​

1,399

​

1,269

Mortgage banking income

​

302

​

241

​

125

​

543

​

239

Increase in cash surrender value of life insurance

​

500

​

497

​

535

​

997

​

1,061

Interest rate swap income

​

​

187

​

​

660

​

​

164

​

​

847

​

​

207

Net gains (losses) on equity investments

​

​

33

​

​

456

​

​

(7)

​

​

489

​

​

64

Net gains on sale of investment securities available for sale

​

​

​

​

​

510

​

​

​

​

​

510

​

​

​

Net gains on sale of fixed assets

​

​

271

​

​

​

​

​

​

​

​

271

​

​

680

Total noninterest income

​

6,534

​

​

6,898

​

​

6,247

​

​

13,432

​

​

12,503

Noninterest expense:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Salaries and employee benefits expense

​

15,087

​

14,517

​

13,761

​

29,604

​

27,242

Net occupancy and equipment expense

​

7,338

​

7,675

​

6,284

​

15,013

​

12,894

Acquisition related expenses

​

​

​

​

​

​

​

​

66

​

​

​

​

​

220

Amortization of intangible assets

​

1,518

​

1,517

​

1,684

​

3,035

​

3,367

FDIC insurance and assessments

​

​

709

​

​

756

​

​

976

​

​

1,465

​

​

1,998

Other expenses

​

5,958

​

5,398

​

5,491

​

11,356

​

9,894

Total noninterest expense

​

30,610

​

29,863

​

28,262

​

60,473

​

55,615

Income before income taxes

​

18,423

​

18,515

​

20,421

​

36,938

​

38,672

Income tax expense

​

3,618

​

3,768

​

3,465

​

7,386

​

6,707

Net income

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

Other comprehensive income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unrealized gains (losses) on investment securities available for sale

​

$

2,431

​

$

(3,383)

​

$

1,859

​

$

(952)

​

$

7,431

Reclassification adjustment for net gains on available for sale securities included in net income

​

​

​

​

​

(510)

​

​

​

​

​

(510)

​

​

​

Change in derivative fair value

​

​

80

​

​

156

​

​

16

​

​

236

​

​

(132)

Income tax expense (benefit) related to other comprehensive income (loss)

​

551

​

(820)

​

409

​

(269)

​

1,592

Other comprehensive income (loss), net of income tax expense (benefit)

​

1,960

​

(2,917)

​

1,466

​

(957)

​

5,707

Comprehensive income

​

$

16,765

​

$

11,830

​

$

18,422

​

$

28,595

​

$

37,672

Share and per share amounts:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income - basic

​

$

1.48

​

$

1.47

​

$

1.70

​

$

2.95

​

$

3.20

Net income - diluted

​

​

1.48

​

​

1.47

​

​

1.68

​

​

2.95

​

​

3.18

Cash dividends declared

​

$

0.6250

​

$

0.6250

​

$

0.6175

​

$

1.2500

​

$

1.2350

Average common shares outstanding - basic

​

10,010,529

​

10,002,903

​

9,994,955

​

10,006,737

​

9,993,944

Average common shares outstanding - diluted

​

10,036,037

​

10,029,213

​

10,082,260

​

10,033,374

​

10,062,831

​

9

Peoples Financial Services Corp.

Net Interest Margin (Unaudited)

(In thousands, fully taxable equivalent basis)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

June 30, 2026

​

​

March 31, 2026

​

​

June 30, 2025

​

​

​

Average

​

Interest

​

Yield/

​

​

Average

​

Interest

​

Yield/

​

​

Average

​

Interest

​

Yield/

​

​

​ ​ ​

Balance

​ ​ ​

Inc./Exp.

​ ​ ​

Rate

​ ​ ​

​

Balance

​ ​ ​

Inc./Exp.

​ ​ ​

Rate

​ ​ ​

​

Balance

​ ​ ​

Inc./Exp.

​ ​ ​

Rate

​

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Earning assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

$

3,973,583

​

$

59,483

​

6.00

%

​

$

3,859,588

​

$

56,316

​

5.92

%

​

$

3,707,650

​

$

57,459

​

6.22

%

Tax-exempt

​

​

263,731

​

​

2,728

​

4.15

​

​

​

258,745

​

​

2,618

​

4.10

​

​

​

282,406

​

​

2,914

​

4.14

​

Total loans

​

​

4,237,314

​

​

62,211

​

5.89

​

​

​

4,118,333

​

​

58,934

​

5.80

​

​

​

3,990,056

​

​

60,373

​

6.07

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

​

422,646

​

​

4,231

​

4.02

​

​

​

461,292

​

​

4,294

​

3.78

​

​

​

540,424

​

​

4,644

​

3.45

​

Tax-exempt

​

​

160,117

​

​

1,596

​

4.00

​

​

​

149,700

​

​

1,434

​

3.88

​

​

​

86,899

​

​

505

​

2.33

​

Total investments

​

​

582,763

​

​

5,827

​

4.01

​

​

​

610,992

​

​

5,728

​

3.80

​

​

​

627,323

​

​

5,149

​

3.29

​

Interest-bearing deposits

​

​

67,064

​

​

622

​

3.72

​

​

​

97,657

​

​

893

​

3.71

​

​

​

48,270

​

​

531

​

4.41

​

Total earning assets

​

​

4,887,141

​

​

68,660

​

5.64

%

​

​

4,826,982

​

​

65,555

​

5.51

%

​

​

4,665,649

​

​

66,053

​

5.68

%

Less: allowance for credit losses

​

​

40,521

​

​

​

​

​

​

​

​

39,470

​

​

​

​

​

​

​

​

41,837

​

​

​

​

​

​

Other assets

​

​

401,762

​

​

​

​

​

​

​

​

399,812

​

​

​

​

​

​

​

​

390,522

​

​

​

​

​

​

Total assets

​

$

5,248,382

​

​

​

​

​

​

​

$

5,187,324

​

​

​

​

​

​

​

$

5,014,334

​

​

​

​

​

​

Liabilities and stockholders’ equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Money market accounts

​

$

1,034,838

​

$

6,673

​

2.59

%

​

$

1,020,493

​

$

6,471

​

2.57

%

​

$

708,585

​

$

6,992

​

3.96

%

Interest-bearing demand and NOW accounts

​

​

1,213,141

​

​

5,825

​

1.93

​

​

​

1,224,040

​

​

5,938

​

1.97

​

​

​

1,406,998

​

​

5,882

​

1.68

​

Savings accounts

​

​

511,202

​

​

466

​

0.37

​

​

​

504,166

​

​

421

​

0.34

​

​

​

501,975

​

​

376

​

0.30

​

Time deposits less than $100

​

​

290,045

​

​

2,297

​

3.18

​

​

​

270,285

​

​

2,109

​

3.16

​

​

​

404,142

​

​

3,991

​

3.96

​

Time deposits $100 or more

​

​

365,167

​

​

2,927

​

3.22

​

​

​

383,825

​

​

3,200

​

3.38

​

​

​

352,216

​

​

3,062

​

3.49

​

Total interest-bearing deposits

​

​

3,414,393

​

​

18,188

​

2.14

​

​

​

3,402,809

​

​

18,139

​

2.16

​

​

​

3,373,916

​

​

20,303

​

2.41

​

Short-term borrowings

​

​

56,166

​

​

536

​

3.83

​

​

​

39,180

​

​

372

​

3.85

​

​

​

35,587

​

​

410

​

4.62

​

Long-term debt

​

​

145,346

​

​

1,500

​

4.14

​

​

​

133,990

​

​

1,404

​

4.25

​

​

​

101,066

​

​

1,211

​

4.81

​

Subordinated debt

​

​

83,334

​

​

1,750

​

8.42

​

​

​

83,222

​

​

1,749

​

8.52

​

​

​

55,622

​

​

1,026

​

7.40

​

Junior subordinated debt

​

​

8,177

​

​

174

​

8.54

​

​

​

8,150

​

​

173

​

8.61

​

​

​

8,075

​

​

188

​

9.34

​

Total borrowings

​

​

293,023

​

​

3,960

​

5.42

​

​

​

264,542

​

​

3,698

​

5.67

​

​

​

200,350

​

​

2,835

​

5.68

​

Total interest-bearing liabilities

​

​

3,707,416

​

​

22,148

​

2.40

%

​

​

3,667,351

​

​

21,837

​

2.41

%

​

​

3,574,266

​

​

23,138

​

2.60

%

Noninterest-bearing deposits

​

​

940,512

​

​

​

​

​

​

​

​

929,686

​

​

​

​

​

​

​

​

897,212

​

​

​

​

​

​

Other liabilities

​

​

65,432

​

​

​

​

​

​

​

​

58,944

​

​

​

​

​

​

​

​

52,608

​

​

​

​

​

​

Stockholders’ equity

​

​

535,022

​

​

​

​

​

​

​

​

531,343

​

​

​

​

​

​

​

​

490,248

​

​

​

​

​

​

Total liabilities and stockholders’ equity

​

$

5,248,382

​

​

​

​

​

​

​

$

5,187,324

​

​

​

​

​

​

​

$

5,014,334

​

​

​

​

​

​

Net interest income/spread

​

​

​

​

$

46,512

​

3.24

%

​

​

​

​

$

43,718

​

3.10

%

​

​

​

​

$

42,915

​

3.08

%

Net interest margin

​

​

​

​

​

​

​

3.82

%

​

​

​

​

​

​

​

3.67

%

​

​

​

​

​

​

​

3.69

%

Tax-equivalent adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

$

573

​

​

​

​

​

​

​

$

550

​

​

​

​

​

​

​

$

612

​

​

​

Investments

​

​

​

​

​

335

​

​

​

​

​

​

​

​

301

​

​

​

​

​

​

​

​

106

​

​

​

Total adjustments

​

​

​

​

$

908

​

​

​

​

​

​

​

$

851

​

​

​

​

​

​

​

$

718

​

​

​

​

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

​

​

​

​

​

​

​

10

Peoples Financial Services Corp.

Net Interest Margin (Unaudited)

(In thousands, fully taxable equivalent basis)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended

​

​

June 30, 2026

June 30, 2025

​

​

Average

​

Interest Income/

​

Yield/

Average

​

Interest Income/

​

Yield/

​

​ ​ ​

Balance

​ ​ ​

Expense

​ ​ ​

Rate

​ ​ ​

Balance

​ ​ ​

Expense

​ ​ ​

Rate

​ ​ ​

Assets:

​ ​ ​

​

​

​ ​ ​

​

​

​ ​ ​

​

​

​

​

​ ​ ​

​

​

​ ​ ​

​

​

Earning assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

$

3,916,900

​

$

115,799

​

5.96

%

$

3,702,911

​

$

112,671

​

6.14

%

Tax-exempt

​

261,252

​

​

5,346

​

4.13

​

​

281,486

​

​

5,756

​

4.12

​

Total loans

​

​

4,178,152

​

​

121,145

​

5.85

​

​

3,984,397

​

​

118,427

​

5.99

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Taxable

​

441,862

​

​

8,525

​

3.89

​

​

548,124

​

​

8,819

​

3.24

​

Tax-exempt

​

154,937

​

​

3,030

​

3.94

​

​

86,985

​

​

1,006

​

2.33

​

Total investments

​

​

596,799

​

​

11,555

​

3.90

​

​

635,109

​

​

9,825

​

3.12

​

Interest-bearing deposits

​

82,275

​

​

1,515

​

3.71

​

​

42,754

​

​

929

​

4.38

​

Total earning assets

​

4,857,226

​

​

134,215

​

5.57

%

​

4,662,260

​

​

129,181

​

5.59

%

Less: allowance for credit losses

​

39,998

​

​

​

​

​

​

​

41,960

​

​

​

​

​

​

Other assets

​

400,794

​

​

​

​

​

​

​

391,221

​

​

​

​

​

​

Total assets

​

$

5,218,022

​

​

​

​

​

​

$

5,011,521

​

​

​

​

​

​

Liabilities and stockholders’ equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Money market accounts

​

$

1,027,706

​

$

13,144

​

2.58

%

$

698,111

​

$

13,562

​

3.92

%

Interest-bearing demand and NOW accounts

​

1,218,560

​

​

11,763

​

1.95

​

​

1,435,943

​

​

12,298

​

1.73

​

Savings accounts

​

507,704

​

​

888

​

0.35

​

​

500,392

​

​

737

​

0.30

​

Time deposits less than $100

​

280,219

​

​

4,406

​

3.17

​

​

414,197

​

​

8,219

​

4.00

​

Time deposits $100 or more

​

374,444

​

​

6,126

​

3.30

​

​

356,817

​

​

6,334

​

3.58

​

Total interest-bearing deposits

​

​

3,408,633

​

​

36,327

​

2.15

​

​

3,405,460

​

​

41,150

​

2.44

​

Short-term borrowings

​

47,720

​

​

908

​

3.84

​

​

27,925

​

​

635

​

4.59

​

Long-term debt

​

139,700

​

​

2,904

​

4.19

​

​

99,426

​

​

2,388

​

4.84

​

Subordinated debt

​

​

83,278

​

​

3,499

​

8.47

​

​

44,373

​

​

1,469

​

6.68

​

Junior subordinated debt

​

​

8,163

​

​

347

​

8.57

​

​

8,063

​

​

374

​

9.35

​

Total borrowings

​

​

278,861

​

​

7,658

​

5.54

​

​

179,787

​

​

4,866

​

5.46

​

Total interest-bearing liabilities

​

3,687,494

​

​

43,985

​

2.41

%

3,585,247

​

​

46,016

​

2.59

%

Noninterest-bearing deposits

​

935,129

​

​

​

​

​

​

886,193

​

​

​

​

​

​

Other liabilities

​

62,206

​

​

​

​

​

​

55,298

​

​

​

​

​

​

Stockholders’ equity

​

533,193

​

​

​

​

​

​

484,783

​

​

​

​

​

​

Total liabilities and stockholders’ equity

​

$

5,218,022

​

​

​

​

​

​

$

5,011,521

​

​

​

​

​

​

Net interest income/spread

​

​

​

​

$

90,230

​

3.16

%

​

​

​

$

83,165

​

3.00

%

Net interest margin

​

​

​

​

​

​

​

3.75

%

​

​

​

​

​

​

3.60

%

Tax-equivalent adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

$

1,123

​

​

​

​

​

​

$

1,209

​

​

​

Investments

​

​

​

​

​

636

​

​

​

​

​

​

​

211

​

​

​

Total adjustments

​

​

​

​

$

1,759

​

​

​

​

​

​

$

1,420

​

​

​

​

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

​

​

11

Peoples Financial Services Corp.

Consolidated Balance Sheets (Unaudited)

(In thousands)

​

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

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

​

12

Peoples Financial Services Corp.

Loan and Asset Quality Data (Unaudited)

(In thousands)

​

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

​

​

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

​

​

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

​

13

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In thousands, except share and per share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

​ ​ ​

June 30

​ ​ ​

Mar 31

​

June 30

June 30

​

June 30

​

​

​

2026

​

2026

​

2025

2026

​

2025

​

Core net income per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income GAAP

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

​

Adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less: Net gains on sale of available for sale securities

​

​

​

​

​

510

​

​

​

​

​

510

​

​

​

​

Add: Net gains on sale of available for sale securities tax adjustment

​

​

​

​

​

112

​

​

​

​

​

112

​

​

​

​

Add: Acquisition related expenses

​

​

​

​

​

​

​

​

66

​

​

​

​

​

220

​

Less: Acquisition related expenses tax adjustment

​

​

​

​

​

​

​

​

14

​

​

​

​

​

48

​

Core net income

​

$

14,805

​

$

14,349

​

$

17,008

​

$

29,154

​

$

32,137

​

Average common shares outstanding - diluted

​

10,036,037

​

10,029,213

​

10,082,260

​

10,033,374

​

10,062,831

​

Core net income per diluted share

​

$

1.48

​

$

1.43

​

$

1.69

​

$

2.91

​

$

3.19

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tangible book value:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total stockholders’ equity

​

$

536,185

​

$

525,505

​

$

494,096

​

$

536,185

​

$

494,096

​

Less: Goodwill

​

75,986

​

75,986

​

75,986

​

75,986

​

75,986

​

Less: Other intangible assets, net

​

24,622

​

26,161

​

30,778

​

24,622

​

30,778

​

Total tangible stockholders’ equity

​

$

435,577

​

$

423,358

​

$

387,332

​

$

435,577

​

$

387,332

​

Common shares outstanding

​

10,010,367

​

10,010,488

​

9,994,696

​

10,010,367

​

9,994,696

​

Tangible book value per share

​

$

43.51

​

$

42.29

​

$

38.75

​

$

43.51

​

$

38.75

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Core return on average stockholders’ equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income GAAP

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

​

Adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less: Net gains on sale of available for sale securities

​

​

​

​

​

510

​

​

​

​

​

510

​

​

​

​

Add: Net gains on sale of available for sale securities tax adjustment

​

​

​

​

​

112

​

​

​

​

​

112

​

​

​

​

Add: Acquisition related expenses

​

​

​

​

​

​

​

​

66

​

​

​

​

​

220

​

Less: Acquisition related expenses tax adjustment

​

​

​

​

​

​

​

​

14

​

​

​

​

​

48

​

Core net income

​

$

14,805

​

$

14,349

​

$

17,008

​

$

29,154

​

$

32,137

​

Average stockholders’ equity

​

$

535,022

​

$

531,343

​

$

490,248

​

$

533,193

​

$

484,783

​

Core return on average stockholders’ equity

​

11.10

%

10.95

%

13.92

%

11.03

%

13.37

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average tangible stockholders' equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income GAAP

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

​

Average stockholders’ equity

​

$

535,022

​

$

531,343

​

$

490,248

​

$

533,193

​

$

484,783

​

Less: goodwill and intangibles

​

101,482

​

103,156

​

106,764

​

102,315

​

108,562

​

Average tangible stockholders’ equity

​

$

433,540

​

$

428,187

​

$

383,484

​

$

430,878

​

$

376,221

​

Return on average tangible stockholders’ equity

​

13.70

%

13.97

%

17.73

%

13.83

%

17.13

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Core return on average tangible stockholders’ equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income GAAP

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

​

Adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less: Net gains on sale of available for sale securities

​

​

​

​

​

510

​

​

​

​

​

510

​

​

​

​

Add: Net gains on sale of available for sale securities tax adjustment

​

​

​

​

​

112

​

​

​

​

​

112

​

​

​

​

Add: Acquisition related expenses

​

​

​

​

​

​

​

​

66

​

​

​

​

​

220

​

Less: Acquisition related expenses tax adjustment

​

​

​

​

​

​

​

​

14

​

​

​

​

​

48

​

Core net income

​

$

14,805

​

$

14,349

​

$

17,008

​

$

29,154

​

$

32,137

​

Average stockholders’ equity

​

$

535,022

​

$

531,343

​

$

490,248

​

$

533,193

​

$

484,783

​

Less: goodwill and intangibles

​

101,482

​

​

103,156

​

106,764

​

102,315

​

108,562

​

Average tangible stockholders’ equity

​

$

433,540

​

$

428,187

​

$

383,484

​

$

430,878

​

$

376,221

​

Core return on average tangible stockholders’ equity

​

13.70

%

13.59

%

17.79

%

13.64

%

17.23

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Core return on average assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income GAAP

​

$

14,805

​

$

14,747

​

$

16,956

​

$

29,552

​

$

31,965

​

Adjustments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less: Net gains on sale of available for sale securities

​

​

​

​

​

510

​

​

​

​

​

510

​

​

​

​

Add: Net gains on sale of available for sale securities tax adjustment

​

​

​

​

​

112

​

​

​

​

​

112

​

​

​

​

Add: Acquisition related expenses

​

​

​

​

​

​

​

​

66

​

​

​

​

​

220

​

Less: Acquisition related expenses tax adjustment

​

​

​

​

​

​

​

​

14

​

​

​

​

​

48

​

Core net income

​

$

14,805

​

$

14,349

​

$

17,008

​

$

29,154

​

$

32,137

​

Average assets

​

$

5,248,382

​

$

5,187,324

​

$

5,014,334

​

$

5,218,022

​

$

5,011,521

​

Core return on average assets

​

1.13

%

1.12

%

1.36

%

1.13

%

1.29

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

14

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In thousands, except share and per share data)

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Six Months Ended

​

​

June 30

​

​

Mar 31

​

​

June 30

​

​

June 30

​

​

June 30

​

​ ​ ​

2026

​

​ ​ ​

2026

​ ​ ​

​ ​ ​

2025

​ ​ ​

​ ​ ​

2026

​

​ ​ ​

2025

Interest income (GAAP)

​

$

67,752

​

​

$

64,704

​

​

$

65,335

​

​

$

132,456

​

​

$

127,761

Adjustment to FTE

​

908

​

​

851

​

​

718

​

​

​

1,759

​

​

1,420

Interest income adjusted to FTE (non-GAAP)

​

68,660

​

​

65,555

​

​

66,053

​

​

​

134,215

​

​

129,181

Interest expense

​

22,148

​

​

21,837

​

​

23,138

​

​

​

43,985

​

​

46,016

Net interest income adjusted to FTE (non-GAAP)

​

$

46,512

​

​

$

43,718

​

​

$

42,915

​

​

$

90,230

​

​

$

83,165

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

Six Months Ended

​

​

​

June 30

​

​

Mar 31

​

​

June 30

​

​

June 30

​

​

June 30

​

​

​ ​ ​

2026

​

​ ​ ​

2026

​ ​ ​

​ ​ ​

2025

​ ​ ​

​ ​ ​

2026

​

​ ​ ​

2025

​

Efficiency ratio (non-GAAP):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expense (GAAP)

​

$

30,610

​

​

$

29,863

​

​

$

28,262

​

​

$

60,473

​

​

$

55,615

​

Less: Amortization of intangible assets expense

​

1,518

​

​

​

1,517

​

​

1,684

​

​

​

3,035

​

​

3,367

​

Less: Acquisition related expenses

​

​

​

​

​

​

​

​

​

​

66

​

​

​

​

​

​

​

220

​

Adjusted Noninterest expense (non-GAAP)

​

​

29,092

​

​

​

28,346

​

​

​

26,512

​

​

​

57,438

​

​

​

52,028

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income (GAAP)

​

​

45,604

​

​

​

42,867

​

​

​

42,197

​

​

​

88,471

​

​

​

81,745

​

Plus: Taxable equivalent adjustment

​

​

908

​

​

​

851

​

​

​

718

​

​

​

1,759

​

​

​

1,420

​

Noninterest income (GAAP)

​

​

6,534

​

​

​

6,898

​

​

​

6,247

​

​

​

13,432

​

​

​

12,503

​

Less: Net gains (losses) on equity securities

​

​

33

​

​

​

456

​

​

​

(7)

​

​

​

489

​

​

​

64

​

Less: Net gains on sale of investment securities available for sale

​

​

​

​

​

​

510

​

​

​

​

​

​

​

510

​

​

​

​

​

Less: Net gains on sale of fixed assets

​

​

271

​

​

​

​

​

​

​

​

​

​

​

271

​

​

​

680

​

Net interest income (FTE) plus noninterest income (non-GAAP)

​

$

52,742

​

​

$

49,650

​

​

$

49,169

​

​

$

102,392

​

​

$

94,924

​

Efficiency ratio (non-GAAP)

​

​

55.16

%

​

​

57.09

%

​

​

53.92

%

​

​

56.10

%

​

​

54.81

%

​

15

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 1.7 MB

Other Documents

• EX-101 EX-101.SCH 2.9 KB
• EX-101 EX-101.LAB 15.0 KB
• EX-101 EX-101.PRE 10.1 KB