SCRANTON, Pa., April 23, 2021 /PRNewswire/ -- Peoples Financial
Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company
for Peoples Security Bank and Trust Company, today reported
unaudited financial results at and for the three months ended
March 31, 2021. Peoples reported net
income of $9.5 million, or
$1.31 per diluted share for the three
months ended March 31, 2021, a 79.5%
increase when compared to $5.3
million, or $0.71 per share
for the comparable period of 2020. The increase in earnings over
the year ago period is a result of a $4.0
million decrease to the provision for loan losses, a
$1.2 million increase to
pre-provision net interest income from lower interest expense, and
a $1.0 million decrease to
noninterest expenses, offset by a higher income tax provision of
$2.0 million.
In addition to evaluating its results of operations in
accordance with GAAP, Peoples routinely supplements its evaluation
with an analysis of certain non-GAAP financial measures, such as
tangible stockholders' equity and core net income ratios. The
reported results included in this release contain items, which
Peoples considers non-core, namely gains and losses incurred within
the investment securities portfolio. 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.
Core net income, which we have defined to exclude gains or
losses from our investment securities portfolio, for the three
months ended March 31, totaled
$9.5 million and $5.2 million in 2021 and 2020, respectively. Core
net income per share for the three months ended March 31, 2021 was $1.31, an 87.1% increase from $0.70 reported for the same period in 2020. Core
net income in the current period excludes a pre-tax $21 thousand unrealized gain on our equity
investment portfolio. Core net income for the 2020 period excludes
a $267 thousand realized gain on the
sale of a pool of municipal securities and an unrealized loss of
$123 thousand on our equity
investment portfolio.
NOTABLES
- Record quarterly net income of $9.5
million or $1.31 per diluted
share.
- First quarter dividend of $0.37
per share represents a 2.8% increase from the first quarter of
2020.
- Return on average assets was 1.32% for the three months ended
March 31, 2021 compared to 1.13% for
the three months ended December 31,
2020, and 0.86% for the comparable period in 2020. Return on
average equity was 12.00% for the three months ended March 31, 2021 compared to 10.32% for the three
months ended December 31, 2020 and
7.05% for the comparable period in 2020.
- Paycheck Protection Program ("PPP") commercial loans
outstanding at March 31, 2021 total
$200.8 million, including
$100.8 million remaining from round
one of the program and $100.0 million
originated in 2021 under round two.
- Loans in deferral at March 31,
2021 totaled $1.3 million or
0.1% of total outstanding loan balances, excluding PPP loans. At
December 31, 2020 loans in deferral
totaled $6.1 million or 0.3% of total
outstanding loans, excluding PPP loans. At June 30, 2020 loans in deferral totaled
$330.1 million or 16.7% of total
outstanding loan balances, excluding PPP loans.
- Deposits grew $540.4 million or
26.9% for the twelve months ended March 31,
2021 and grew $113.3 million
during the three months ended March 31,
2021.
- Tax-equivalent net interest income increased $1.2 million or 6.0% to $21.1 million for the three months ended
March 31, 2021 compared to
$19.9 million for the same period in
2020.
- Provision for loan losses decreased $4.0
million from the comparable period in 2020, the product of a
$0.5 million release from the
allowance for loan losses in the current period and a $3.5 million provision for loan losses in the
year ago period.
- Efficiency ratio improved to 50.8% for the three months ended
March 31, 2021, compared to 57.9% in
the year ago period.
INCOME STATEMENT REVIEW
Calculated on a fully taxable equivalent basis ("FTE"), our
tax-equivalent net interest margin for the three months ended
March 31, 2021 was 3.15%, an increase
of 15 basis points when compared to the three months ended
December 31, 2020, and a decrease of
35 basis points when compared to 3.50% for the same three month
period in 2020. The increase in net interest margin from the
prior three month period is primarily due to interest and fees on
PPP loans and lower deposit costs. The tax-equivalent yield
on interest-earning assets increased 6 basis points to 3.55% during
the three months ended March 31, 2021
from 3.49% during the three months ended December 31, 2020, and decreased 70 basis points
when compared to 4.25% for the three months ended March 31, 2020. The decrease in
net interest margin and yield from the year ago period is due to
lower market rates, the result of the Federal Open Market Committee
("FOMC") cutting the federal funds rate 150 basis points in the
first three months of 2020 resulting from the uncertain economic
impact of the coronavirus pandemic. The decrease in market rates
resulted in lower rates on our existing adjustable rate loans and
affected rates on new originations. However, we have experienced
lower interest-bearing liability costs due to lower market rates,
partially offset, however, by the additional interest expense on
subordinated debt we issued during the second quarter of 2020. Our
cost of funds, which represents our average rate paid on total
interest-bearing liabilities, decreased 10 basis points to 0.57%
for the three months ended March 31,
2021 when compared to 0.67% during the three months ended
December 31, 2020, and has decreased
44 basis points when compared to the same three month period in
2020.
First Quarter 2021 Results – Comparison to Prior-Year
Quarter
Tax-equivalent net interest income for the three months ended
March 31, increased $1.2 million or 6.0% to $21.1 million in 2021 from $19.9 million in 2020. The increase in tax
equivalent net interest income was largely due to lower interest
expense of $1.6 million, as continued
focus has been on lowering deposit and borrowing costs in the
current and expected low market rate environment. Partially
offsetting the lower interest expense, was lower interest income of
$0.4 due to a negative rate variance,
as asset yields continued to reprice lower. The increase to total
average earning assets of $426.7
million partially offset the lower yields. PPP loans
averaged $195.5 million in the
three-month period ended March 31,
2021 with interest and net fees totaling approximately
$2.5 million. The tax-equivalent
yield on the loan portfolio decreased to 4.09% for the three months
ended March 31, 2021, compared to
4.55% for the comparable period in 2020 due to lower market rates.
Loans, net averaged $2.2 billion for
the three months ended March 31, 2021
and $2.0 billion for the comparable
period in 2020. For the three months ended March 31, the tax-equivalent yield on total
investments decreased to 2.15% in 2021 from 2.48% in 2020. Average
investments totaled $332.4 million in
2021 and $316.2 million in 2020.
Average interest-bearing liabilities increased $232.8 million for the three months ended
March 31, 2021, compared to the
corresponding period last year due primarily to deposit growth from
higher customer savings rates, strong organic deposit growth of new
customer relationships and the federal governments' stimulus
funding.
For the three months ended March 31,
2021, the provision for loan losses was negative
$0.5 million, due to improved credit
quality and a slight decrease in non-PPP loan balances, and was
$4.0 million less than the provision
for loan losses in the year ago period, which reflected an
adjustment of qualitative factors in our allowance for loan losses
methodology due to the onset of the coronavirus pandemic and its
uncertain economic impact.
Noninterest income for the three months ended March 31, 2021 and 2020 was $3.5 million. Mortgage banking revenue was
$0.2 million higher in the current
period due to increased refinance activity from low market rates
which resulted in a higher volume of loans sold into the secondary
market. Revenue from commercial loan interest rate swap
transactions was $0.3 million higher
in the current period due to a higher credit valuation
adjustment. Service charges, fees, commissions and other are
lower in the current period by $0.4
million due to lower service charges on consumer and
commercial deposit accounts and an accrual adjustment to a bank
owned life insurance benefit. The year ago period included a
net gain of $0.1 million from a sale
of a pool of municipal securities, offset by an unrealized loss
related to our equity portfolio.
Noninterest expense decreased $1.0
million or 7.5% to $12.6
million for the three months ended March 31, 2021, from $13.6
million for the three months ended March 31, 2020. Salaries and employee benefits
decreased $1.3 million or 16.4% as
higher salaries were more than offset by lower benefits expenses
and deferred costs on loan originations which are recorded as a
contra-salary expense. Occupancy and equipment expenses were
higher by $0.2 million due to
information technology investments related to mobile/digital
banking solutions in the current period. Other expenses were higher
by $0.1 million due primarily to an
increase in FDIC insurance assessments in the current period
primarily attributed to the receipt of a credit in the year ago
period related to the Deposit Insurance Fund's (DIF) minimum
reserve ratio assessment.
The provision for income tax expense increased $2.0 million for the three months ended
March 31, 2021 compared to the year
ago period due to higher levels of book taxable income and a
$0.6 million deferred tax adjustment
related to prior periods.
BALANCE SHEET REVIEW
At March 31, 2021, total assets,
loans and deposits were $3.0 billion,
$2.2 billion and $2.5 billion, respectively. Loans balances
increased slightly from December 31,
2020 as loan demand, exclusive of PPP loans, was soft to
begin the year. The slight growth in loans was primarily due to a
net increase in PPP loans resulting from our participation in the
second round of the Small Business Administration ("SBA")
administered PPP, and to a lesser extent in commercial real estate
loans. During the first quarter of 2021, we funded an
additional 885 loans totaling $100.0
million under the SBA's second PPP loan program.
Total deposits increased $113.3
million or 4.6% from December 31,
2020 due to organic growth of customer relationships
throughout all our markets, PPP loan proceeds retained coupled with
additional deposits by our commercial borrowers and federal
government stimulus payments. Non-interest bearing deposits
increased $38.8 million or 6.2% and
interest-bearing deposits increased $74.5
million or 4.1% during the three months ended March 31, 2021. Total investments were
$341.1 million at March 31, 2021, including $333.8 million securities classified as
available-for-sale and $7.2 million
classified as held-to-maturity.
Stockholders' equity equaled $317.3
million or $44.00 per share at
March 31, 2021, and $316.9 million or $43.92 per share at December 31, 2020. The increase in stockholders'
equity from December 31, 2020 is
attributable to net income, partially offset by a decrease to
accumulated other comprehensive income ("AOCI") resulting from a
decrease to the unrealized gain on investment securities and
dividends paid to shareholders. Tangible stockholders' equity
improved to $35.10 per share at
March 31, 2021, from $35.00 per share at December 31, 2020. Dividends declared for the
three months ended March 31, 2021
amounted to $0.37 per share, a 2.8%
increase from the 2020 period, representing a dividend payout ratio
of 28.2%.
ASSET QUALITY REVIEW
Nonperforming assets were $8.4
million or 0.38% of loans, net and foreclosed assets at
March 31, 2021, compared to
$10.5 million or 0.48% of loans, net
and foreclosed assets at December 31,
2020. The decrease in non-performing assets from the
previous quarter was primarily due to the payoff of a non-accrual
commercial loan and the sale of a foreclosed property. The
Company's allowance for loan losses decreased $0.6 million or 2.1% in the first quarter of
2021, due to a $0.5 million release
from the allowance for loan losses in the current period resulting
from improved credit quality and a slight decrease in non-PPP loan
balances. The allowance for loan losses at March 31, 2021 continued to reflect the
provisions added during 2020 from our adjustment of qualitative
factors in our allowance for loan losses methodology, due to
economic decline and expectation of increased credit losses from
COVID-19's adverse impact on economic and business operating
conditions. The allowance for loan losses equaled $26.8 million or 1.23% of loans, net at
March 31, 2021 compared to
$27.3 million or 1.26% of loans, net,
at December 31, 2020. Excluding PPP loans which do
not carry an allowance for losses due to a 100% government
guarantee, the ratio equaled 1.35% at March
31, 2021. Loans charged-off, net of recoveries, for
the three months ended March 31,
2021, equaled $0.1 million or
0.01% of average loans, compared to $0.5
million or 0.10% of average loans for the comparable period
last year.
Impact of COVID-19
Operationally, as COVID-19 events unfold, our continued priority
is the health and safety of our customers and employees. We
recently worked with local government and health professionals and
have had opportunities to offer our eligible employees and their
family members appointments to receive the COVID-19 vaccine.
We continue to follow the recommendations of our state governments
as to conducting business and have maintained safety protocols.
Currently all our offices have returned to pre-pandemic operating
hours with limited lobby access.
From a lending perspective, organic loan growth, with the
exception of PPP loans, was soft as we began 2021, however, loan
activity improved at the end of the quarter. We participated
in the Coronavirus Aid, Relief and Economic Security Act ("CARES
Act"), PPP, a $350 billion
specialized low-interest loan program funded by the U.S.
Treasury Department and administered by the SBA. During 2020,
we had approved 1,450 PPP loans totaling $217.5 million. Substantially all of the loans
were made to existing customers, funded under the two year PPP loan
program, and the loan proceeds initially were deposited with our
institution. PPP loan forgiveness commenced during the fourth
quarter of 2020 and we continue to process loan forgiveness
applications. At March 31,
2021, we have 468 loans totaling $100.8 million remaining compared to 1,304 loans
totaling $189.7 million at
December 31, 2020. We expect the
majority of the remaining $100.8
million to be forgiven during 2021. During the first quarter
of 2021, we funded an additional 885 loans totaling $100.0 million under the SBA's second PPP loan
program. The application process for the second PPP
loan program ends May 31,
2021.
From a credit risk perspective, we took actions to identify and
assess our COVID-19 related credit exposures based on asset class
and borrower type. From the onset of the crisis, we worked to
proactively monitor our loan portfolio by contacting many of our
borrowers to evaluate the impact of the pandemic on them, their
businesses and the underlying collateral for our loans. The Company
implemented a customer payment deferral program to assist both
consumer and business borrowers that may be experiencing financial
hardship due to COVID-19 related challenges. At the start of
the pandemic, the Company granted payment deferral requests for up
to six months to a total of 481 commercial loans with outstanding
loan balances of $306.9 million and
to 505 consumer loans with outstanding balances of $23.3 million. At March
31, 2021, the majority of loans are no longer in deferral as
borrowers have begun to make their regular payments. Outstanding
loan balances remaining in deferral at March
31, 2021 totaled $1.3 million,
a decrease of $4.8 million from the
$6.1 million at December 31, 2020, and a decrease of $328.8 million from the $330.1 million in deferral at June 30, 2020. As a percentage of total loan
balances, excluding PPP loans, loans in deferral represented less
than 0.1% of loans outstanding at March 31,
2021 compared to 0.3% of loans outstanding at December 31, 2020, and 16.7% of loans outstanding
at June 30, 2020. At March 31, 2021, commercial loan balances
remaining in deferral total $1.0
million while consumer loans total $0.3 million. Loan deferrals and modifications
have been executed consistent with the guidelines of the CARES Act.
Pursuant to the CARES Act, loan deferrals are not included in our
nonperforming loans disclosed above. Loans in deferral status will
continue to accrue interest during the deferral period unless
otherwise classified as nonperforming.
About Peoples:
Peoples Financial Services Corp. is the parent company of
Peoples Security Bank and Trust Company, a community bank serving
Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, and Wyoming Counties in Pennsylvania and Broome County in New York through 26 offices. 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, local and timely decision making, flexible and
reasonable operating procedures and consistently applied credit
policies.
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 Peoples
Security Bank and Trust Company (collectively, "Peoples") 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 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: prevailing economic and political
conditions, particularly in our market area; the COVID-19 crisis
and the governmental responses to the crisis; credit risk
associated with our lending activities; changes in interest rates,
loan demand, real estate values and competition; changes in
accounting principles, policies, and guidelines; changes in any
applicable law, rule, regulation or practice with respect to tax or
legal issues; our ability to identify and address cyber-security
risks and other economic, competitive, governmental, regulatory and
technological factors affecting Peoples' operations, pricing,
products and services and other factors that may be described in
Peoples' 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.
In addition to these risks, acquisitions and business
combinations, present risks other than those presented by the
nature of the business acquired. Acquisitions and business
combinations may be substantially more expensive to complete than
originally anticipated, and the anticipated benefits may be
significantly harder-or take longer-to achieve than expected. As
regulated financial institutions, our pursuit of attractive
acquisition and business combination opportunities could be
negatively impacted by regulatory delays or other regulatory
issues. Regulatory and/or legal issues related to the
pre-acquisition operations of an acquired or combined business may
cause reputational harm to Peoples following the acquisition or
combination, and integration of the acquired or combined business
with ours may result in additional future costs arising as a result
of those issues.
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
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Key performance
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1.31
|
|
$
|
1.13
|
|
$
|
1.14
|
|
$
|
1.03
|
|
$
|
0.71
|
|
Core net income
(1)
|
|
$
|
1.31
|
|
$
|
1.10
|
|
$
|
1.09
|
|
$
|
1.03
|
|
$
|
0.70
|
|
Cash dividends
declared
|
|
$
|
0.37
|
|
$
|
0.36
|
|
$
|
0.36
|
|
$
|
0.36
|
|
$
|
0.36
|
|
Book value
|
|
$
|
44.00
|
|
$
|
43.92
|
|
$
|
43.30
|
|
$
|
42.55
|
|
$
|
41.68
|
|
Tangible book value
(1)
|
|
$
|
35.10
|
|
$
|
35.00
|
|
$
|
34.40
|
|
$
|
33.74
|
|
$
|
32.86
|
|
Market
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
47.34
|
|
$
|
40.40
|
|
$
|
39.38
|
|
$
|
39.40
|
|
$
|
50.10
|
|
Low
|
|
$
|
36.02
|
|
$
|
34.47
|
|
$
|
32.51
|
|
$
|
30.24
|
|
$
|
35.60
|
|
Closing
|
|
$
|
42.24
|
|
$
|
36.76
|
|
$
|
34.76
|
|
$
|
38.19
|
|
$
|
39.74
|
|
Market
capitalization
|
|
$
|
304,605
|
|
$
|
265,231
|
|
$
|
251,743
|
|
$
|
280,042
|
|
$
|
291,820
|
|
Common shares
outstanding
|
|
|
7,211,293
|
|
|
7,215,202
|
|
|
7,242,326
|
|
|
7,332,856
|
|
|
7,343,240
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
|
|
12.00
|
%
|
|
10.32
|
%
|
|
10.58
|
%
|
|
9.87
|
%
|
|
7.05
|
%
|
Core return on
average stockholders'
equity (1)
|
|
|
11.98
|
%
|
|
10.05
|
%
|
|
10.12
|
%
|
|
9.83
|
%
|
|
6.90
|
%
|
Return on average
tangible
stockholders' equity
|
|
|
15.02
|
%
|
|
12.96
|
%
|
|
13.34
|
%
|
|
12.49
|
%
|
|
8.99
|
%
|
Core return on
average tangible
stockholders' equity (1)
|
|
|
14.99
|
%
|
|
12.62
|
%
|
|
12.76
|
%
|
|
12.44
|
%
|
|
8.79
|
%
|
Return on average
assets
|
|
|
1.32
|
%
|
|
1.13
|
%
|
|
1.21
|
%
|
|
1.13
|
%
|
|
0.86
|
%
|
Core return on
average assets (1)
|
|
|
1.32
|
%
|
|
1.10
|
%
|
|
1.16
|
%
|
|
1.12
|
%
|
|
0.84
|
%
|
Stockholders' equity
to total assets
|
|
|
10.59
|
%
|
|
10.99
|
%
|
|
11.18
|
%
|
|
11.56
|
%
|
|
12.03
|
%
|
Efficiency ratio
(2)
|
|
|
50.83
|
%
|
|
56.35
|
%
|
|
55.94
|
%
|
|
54.01
|
%
|
|
57.88
|
%
|
Nonperforming assets
to loans, net, and
foreclosed assets
|
|
|
0.38
|
%
|
|
0.48
|
%
|
|
0.52
|
%
|
|
0.62
|
%
|
|
0.60
|
%
|
Net charge-offs to
average loans, net
|
|
|
0.01
|
%
|
|
0.05
|
%
|
|
0.26
|
%
|
|
0.10
|
%
|
|
0.10
|
%
|
Allowance for loan
losses to loans, net
|
|
|
1.23
|
%
|
|
1.26
|
%
|
|
1.21
|
%
|
|
1.24
|
%
|
|
1.27
|
%
|
Interest-bearing
assets yield (FTE) (3)
|
|
|
3.55
|
%
|
|
3.49
|
%
|
|
3.73
|
%
|
|
3.90
|
%
|
|
4.25
|
%
|
Cost of
funds
|
|
|
0.57
|
%
|
|
0.67
|
%
|
|
0.76
|
%
|
|
0.75
|
%
|
|
1.01
|
%
|
Net interest spread
(FTE) (3)
|
|
|
2.99
|
%
|
|
2.81
|
%
|
|
2.97
|
%
|
|
3.15
|
%
|
|
3.24
|
%
|
Net interest margin
(FTE) (3)
|
|
|
3.15
|
%
|
|
3.00
|
%
|
|
3.19
|
%
|
|
3.36
|
%
|
|
3.50
|
%
|
|
|
(1)
|
See Reconciliation of
Non-GAAP financial measures.
|
(2)
|
Total noninterest
expense less amortization of intangible assets divided by
tax-equivalent net interest income and noninterest income less net
gains(losses) on investment securities
available-for-sale.
|
(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
(In thousands,
except per share data)
|
|
|
|
|
|
|
Mar 31
|
|
Mar 31
|
|
Three Months
Ended
|
|
2021
|
|
2020
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
20,900
|
|
$
|
20,917
|
|
Tax-exempt
|
|
|
870
|
|
|
1,031
|
|
Interest and
dividends on investment securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,243
|
|
|
1,548
|
|
Tax-exempt
|
|
|
390
|
|
|
299
|
|
Dividends
|
|
|
23
|
|
|
23
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
2
|
|
|
24
|
|
Interest on federal
funds sold
|
|
|
49
|
|
|
|
|
Total interest
income
|
|
|
23,477
|
|
|
23,842
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,092
|
|
|
3,503
|
|
Interest on
short-term borrowings
|
|
|
71
|
|
|
573
|
|
Interest on long-term
debt
|
|
|
103
|
|
|
205
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
|
|
Total interest
expense
|
|
|
2,709
|
|
|
4,281
|
|
Net interest
income
|
|
|
20,768
|
|
|
19,561
|
|
Provision for loan
losses
|
|
|
(500)
|
|
|
3,500
|
|
Net interest income
after provision for loan losses
|
|
|
21,268
|
|
|
16,061
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service charges,
fees, commissions and other
|
|
|
1,184
|
|
|
1,605
|
|
Merchant services
income
|
|
|
93
|
|
|
114
|
|
Commissions and fees
on fiduciary activities
|
|
|
533
|
|
|
506
|
|
Wealth management
income
|
|
|
358
|
|
|
387
|
|
Mortgage banking
income
|
|
|
312
|
|
|
137
|
|
Increase in cash
surrender value of life insurance
|
|
|
219
|
|
|
187
|
|
Interest rate swap
revenue
|
|
|
797
|
|
|
470
|
|
Net gain (loss) on
investment securities
|
|
|
21
|
|
|
(123)
|
|
Net gain on sale of
investment securities available-for-sale
|
|
|
|
|
|
267
|
|
Total noninterest
income
|
|
|
3,517
|
|
|
3,550
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
6,570
|
|
|
7,856
|
|
Net occupancy and
equipment expense
|
|
|
3,267
|
|
|
3,079
|
|
Amortization of
intangible assets
|
|
|
125
|
|
|
154
|
|
Other
expenses
|
|
|
2,667
|
|
|
2,562
|
|
Total noninterest
expense
|
|
|
12,629
|
|
|
13,651
|
|
Income before income
taxes
|
|
|
12,156
|
|
|
5,960
|
|
Provision for income
tax expense
|
|
|
2,678
|
|
|
679
|
|
Net income
|
|
$
|
9,478
|
|
$
|
5,281
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
|
$
|
(7,749)
|
|
$
|
7,629
|
|
Reclassification
adjustment for gains included in net income
|
|
|
|
|
|
(267)
|
|
Change in derivative
fair value
|
|
|
242
|
|
|
1,036
|
|
Income tax related to
other comprehensive income
|
|
|
(1,576)
|
|
|
1,765
|
|
Other comprehensive
income, net of income taxes
|
|
|
(5,931)
|
|
|
6,633
|
|
Comprehensive
income
|
|
$
|
3,547
|
|
$
|
11,914
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.31
|
|
$
|
0.72
|
|
Net income -
diluted
|
|
|
1.31
|
|
|
0.71
|
|
Cash dividends
declared
|
|
$
|
0.37
|
|
$
|
0.36
|
|
Average common shares
outstanding - basic
|
|
|
7,210,952
|
|
|
7,379,438
|
|
Average common shares
outstanding - diluted
|
|
|
7,246,016
|
|
|
7,405,703
|
|
Peoples Financial
Services Corp.
Consolidated
Statements of Income
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
20,900
|
|
$
|
20,705
|
|
$
|
20,901
|
|
$
|
21,160
|
|
$
|
20,917
|
|
Tax-exempt
|
|
|
870
|
|
|
888
|
|
|
876
|
|
|
941
|
|
|
1,031
|
|
Interest and
dividends on investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,243
|
|
|
1,111
|
|
|
1,250
|
|
|
1,420
|
|
|
1,548
|
|
Tax-exempt
|
|
|
390
|
|
|
304
|
|
|
280
|
|
|
295
|
|
|
299
|
|
Dividends
|
|
|
23
|
|
|
26
|
|
|
23
|
|
|
25
|
|
|
23
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
24
|
|
Interest on federal
funds sold
|
|
|
49
|
|
|
47
|
|
|
12
|
|
|
6
|
|
|
|
|
Total interest
income
|
|
|
23,477
|
|
|
23,085
|
|
|
23,346
|
|
|
23,852
|
|
|
23,842
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
2,092
|
|
|
2,614
|
|
|
2,758
|
|
|
2,864
|
|
|
3,503
|
|
Interest on
short-term borrowings
|
|
|
71
|
|
|
91
|
|
|
82
|
|
|
102
|
|
|
573
|
|
Interest on long-term
debt
|
|
|
103
|
|
|
127
|
|
|
139
|
|
|
231
|
|
|
205
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
148
|
|
|
|
|
Total interest
expense
|
|
|
2,709
|
|
|
3,276
|
|
|
3,422
|
|
|
3,345
|
|
|
4,281
|
|
Net interest
income
|
|
|
20,768
|
|
|
19,809
|
|
|
19,924
|
|
|
20,507
|
|
|
19,561
|
|
Provision for loan
losses
|
|
|
(500)
|
|
|
1,050
|
|
|
1,050
|
|
|
1,800
|
|
|
3,500
|
|
Net interest income
after provision for loan losses
|
|
|
21,268
|
|
|
18,759
|
|
|
18,874
|
|
|
18,707
|
|
|
16,061
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges,
fees, commissions and other
|
|
|
1,184
|
|
|
2,187
|
|
|
1,584
|
|
|
1,433
|
|
|
1,605
|
|
Merchant services
income
|
|
|
93
|
|
|
101
|
|
|
137
|
|
|
472
|
|
|
114
|
|
Commissions and fees
on fiduciary activities
|
|
|
533
|
|
|
551
|
|
|
575
|
|
|
493
|
|
|
506
|
|
Wealth management
income
|
|
|
358
|
|
|
392
|
|
|
272
|
|
|
231
|
|
|
387
|
|
Mortgage banking
income
|
|
|
312
|
|
|
658
|
|
|
488
|
|
|
312
|
|
|
137
|
|
Increase in cash
surrender value of life insurance
|
|
|
219
|
|
|
202
|
|
|
192
|
|
|
193
|
|
|
187
|
|
Interest rate swap
revenue
|
|
|
797
|
|
|
374
|
|
|
1,228
|
|
|
249
|
|
|
470
|
|
Net gain (loss) on
investment securities
|
|
|
21
|
|
|
76
|
|
|
2
|
|
|
39
|
|
|
(123)
|
|
Net gain on sale of
investment securities available-for-sale
|
|
|
|
|
|
194
|
|
|
457
|
|
|
|
|
|
267
|
|
Total noninterest
income
|
|
|
3,517
|
|
|
4,735
|
|
|
4,935
|
|
|
3,422
|
|
|
3,550
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
6,570
|
|
|
7,400
|
|
|
7,831
|
|
|
7,048
|
|
|
7,856
|
|
Net occupancy and
equipment expense
|
|
|
3,267
|
|
|
3,588
|
|
|
3,131
|
|
|
3,042
|
|
|
3,079
|
|
Amortization of
intangible assets
|
|
|
125
|
|
|
144
|
|
|
154
|
|
|
154
|
|
|
154
|
|
Other
expenses
|
|
|
2,667
|
|
|
2,869
|
|
|
2,858
|
|
|
2,998
|
|
|
2,562
|
|
Total noninterest
expense
|
|
|
12,629
|
|
|
14,001
|
|
|
13,974
|
|
|
13,242
|
|
|
13,651
|
|
Income before income
taxes
|
|
|
12,156
|
|
|
9,493
|
|
|
9,835
|
|
|
8,887
|
|
|
5,960
|
|
Income tax
expense
|
|
|
2,678
|
|
|
1,308
|
|
|
1,523
|
|
|
1,311
|
|
|
679
|
|
Net income
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
|
$
|
(7,749)
|
|
$
|
(305)
|
|
$
|
(639)
|
|
$
|
2,094
|
|
$
|
7,629
|
|
Reclassification
adjustment for gains included in net income
|
|
|
|
|
|
(194)
|
|
|
(457)
|
|
|
|
|
|
(267)
|
|
Change in benefit
plan liabilities
|
|
|
|
|
|
(1,398)
|
|
|
|
|
|
|
|
|
|
|
Change in derivative
fair value
|
|
|
242
|
|
|
(41)
|
|
|
(137)
|
|
|
(543)
|
|
|
1,036
|
|
Income tax related to
other comprehensive income
|
|
|
(1,576)
|
|
|
(407)
|
|
|
(260)
|
|
|
326
|
|
|
1,765
|
|
Other comprehensive
income, net of income taxes
|
|
|
(5,931)
|
|
|
(1,531)
|
|
|
(973)
|
|
|
1,225
|
|
|
6,633
|
|
Comprehensive
income
|
|
$
|
3,547
|
|
$
|
6,654
|
|
$
|
7,339
|
|
$
|
8,801
|
|
$
|
11,914
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.31
|
|
$
|
1.13
|
|
$
|
1.14
|
|
$
|
1.03
|
|
$
|
0.72
|
|
Net income -
diluted
|
|
|
1.31
|
|
|
1.13
|
|
|
1.14
|
|
|
1.03
|
|
|
0.71
|
|
Cash dividends
declared
|
|
$
|
0.37
|
|
$
|
0.36
|
|
$
|
0.36
|
|
$
|
0.36
|
|
$
|
0.36
|
|
Average common shares
outstanding - basic
|
|
|
7,210,952
|
|
|
7,222,810
|
|
|
7,277,189
|
|
|
7,341,636
|
|
|
7,379,438
|
|
Average common shares
outstanding - diluted
|
|
|
7,246,016
|
|
|
7,257,874
|
|
|
7,312,253
|
|
|
7,376,700
|
|
|
7,405,703
|
|
Peoples Financial
Services Corp.
Details of Net
Interest and Net Interest Margin
(In thousands,
fully taxable equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
20,900
|
|
$
|
20,705
|
|
$
|
20,901
|
|
$
|
21,160
|
|
$
|
20,917
|
|
Tax-exempt
|
|
|
1,101
|
|
|
1,124
|
|
|
1,109
|
|
|
1,191
|
|
|
1,305
|
|
Total loans,
net
|
|
|
22,001
|
|
|
21,829
|
|
|
22,010
|
|
|
22,351
|
|
|
22,222
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,266
|
|
|
1,137
|
|
|
1,273
|
|
|
1,445
|
|
|
1,571
|
|
Tax-exempt
|
|
|
494
|
|
|
385
|
|
|
354
|
|
|
374
|
|
|
378
|
|
Total
investments
|
|
|
1,760
|
|
|
1,522
|
|
|
1,627
|
|
|
1,819
|
|
|
1,949
|
|
Interest on
interest-bearing balances in other banks
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
24
|
|
Federal funds
sold
|
|
|
49
|
|
|
47
|
|
|
12
|
|
|
6
|
|
|
|
|
Total interest
income
|
|
|
23,812
|
|
|
23,402
|
|
|
23,653
|
|
|
24,181
|
|
|
24,195
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,092
|
|
|
2,614
|
|
|
2,758
|
|
|
2,864
|
|
|
3,503
|
|
Short-term
borrowings
|
|
|
71
|
|
|
91
|
|
|
82
|
|
|
102
|
|
|
573
|
|
Long-term
debt
|
|
|
103
|
|
|
127
|
|
|
139
|
|
|
231
|
|
|
205
|
|
Subordinated
debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
148
|
|
|
|
|
Total interest
expense
|
|
|
2,709
|
|
|
3,276
|
|
|
3,422
|
|
|
3,345
|
|
|
4,281
|
|
Net interest
income
|
|
$
|
21,103
|
|
$
|
20,126
|
|
$
|
20,231
|
|
$
|
20,836
|
|
$
|
19,914
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
4.13
|
%
|
|
3.98
|
%
|
|
4.04
|
%
|
|
4.19
|
%
|
|
4.60
|
%
|
Tax-exempt
|
|
|
3.56
|
%
|
|
3.80
|
%
|
|
3.70
|
%
|
|
3.75
|
%
|
|
3.88
|
%
|
Total loans,
net
|
|
|
4.09
|
%
|
|
3.97
|
%
|
|
4.02
|
%
|
|
4.16
|
%
|
|
4.55
|
%
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1.97
|
%
|
|
2.03
|
%
|
|
2.09
|
%
|
|
2.24
|
%
|
|
2.36
|
%
|
Tax-exempt
|
|
|
2.78
|
%
|
|
3.30
|
%
|
|
3.56
|
%
|
|
3.46
|
%
|
|
3.10
|
%
|
Total
investments
|
|
|
2.15
|
%
|
|
2.25
|
%
|
|
2.30
|
%
|
|
2.41
|
%
|
|
2.48
|
%
|
Interest-bearing
balances with banks
|
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.08
|
%
|
|
0.16
|
%
|
|
1.17
|
%
|
Federal funds
sold
|
|
|
0.10
|
%
|
|
0.10
|
%
|
|
0.11
|
%
|
|
0.14
|
%
|
|
|
|
Total interest-bearing
assets
|
|
|
3.55
|
%
|
|
3.49
|
%
|
|
3.73
|
%
|
|
3.90
|
%
|
|
4.25
|
%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
0.46
|
%
|
|
0.57
|
%
|
|
0.65
|
%
|
|
0.72
|
%
|
|
0.92
|
%
|
Short-term
borrowings
|
|
|
0.57
|
%
|
|
0.72
|
%
|
|
0.65
|
%
|
|
0.44
|
%
|
|
1.62
|
%
|
Long-term
debt
|
|
|
2.88
|
%
|
|
2.70
|
%
|
|
2.59
|
%
|
|
1.13
|
%
|
|
2.54
|
%
|
Subordinated
debt
|
|
|
5.38
|
%
|
|
5.38
|
%
|
|
5.37
|
%
|
|
5.38
|
%
|
|
|
|
Total interest-bearing
liabilities
|
|
|
0.57
|
%
|
|
0.67
|
%
|
|
0.76
|
%
|
|
0.75
|
%
|
|
1.01
|
%
|
Net interest
spread
|
|
|
2.98
|
%
|
|
2.81
|
%
|
|
2.97
|
%
|
|
3.15
|
%
|
|
3.24
|
%
|
Net interest
margin
|
|
|
3.15
|
%
|
|
3.00
|
%
|
|
3.19
|
%
|
|
3.36
|
%
|
|
3.50
|
%
|
Peoples Financial
Services Corp.
Consolidated
Balance Sheets
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
At period end
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
30,786
|
|
$
|
29,287
|
|
$
|
42,940
|
|
$
|
27,146
|
|
$
|
22,181
|
|
Interest-bearing
balances in other banks
|
|
|
8,432
|
|
|
15,905
|
|
|
20,972
|
|
|
14,788
|
|
|
13,146
|
|
Federal funds
sold
|
|
|
264,100
|
|
|
183,000
|
|
|
102,300
|
|
|
10,000
|
|
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
333,753
|
|
|
295,911
|
|
|
247,404
|
|
|
287,709
|
|
|
302,884
|
|
Equity investments
carried at fair value
|
|
|
159
|
|
|
138
|
|
|
341
|
|
|
338
|
|
|
299
|
|
Held-to-maturity
|
|
|
7,166
|
|
|
7,225
|
|
|
7,297
|
|
|
7,401
|
|
|
7,520
|
|
Loans held for
sale
|
|
|
458
|
|
|
837
|
|
|
2,161
|
|
|
1,939
|
|
|
270
|
|
Loans, net
|
|
|
2,179,534
|
|
|
2,177,982
|
|
|
2,188,463
|
|
|
2,181,909
|
|
|
2,023,155
|
|
Less: allowance for
loan losses
|
|
|
26,783
|
|
|
27,344
|
|
|
26,584
|
|
|
26,957
|
|
|
25,686
|
|
Net loans
|
|
|
2,152,751
|
|
|
2,150,638
|
|
|
2,161,879
|
|
|
2,154,952
|
|
|
1,997,469
|
|
Premises and
equipment, net
|
|
|
46,777
|
|
|
47,045
|
|
|
47,926
|
|
|
48,378
|
|
|
48,619
|
|
Accrued interest
receivable
|
|
|
8,206
|
|
|
8,255
|
|
|
8,595
|
|
|
8,368
|
|
|
7,283
|
|
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Other intangible
assets, net
|
|
|
835
|
|
|
960
|
|
|
1,104
|
|
|
1,257
|
|
|
1,411
|
|
Bank owned life
insurance
|
|
|
42,530
|
|
|
42,316
|
|
|
37,099
|
|
|
35,412
|
|
|
35,224
|
|
Other
assets
|
|
|
36,146
|
|
|
38,915
|
|
|
62,274
|
|
|
39,366
|
|
|
44,096
|
|
Total
assets
|
|
$
|
2,995,469
|
|
$
|
2,883,802
|
|
$
|
2,805,662
|
|
$
|
2,700,424
|
|
$
|
2,543,772
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
661,262
|
|
$
|
622,475
|
|
$
|
579,196
|
|
$
|
575,206
|
|
$
|
467,315
|
|
Interest-bearing
|
|
|
1,889,154
|
|
|
1,814,638
|
|
|
1,777,688
|
|
|
1,634,918
|
|
|
1,542,680
|
|
Total
deposits
|
|
|
2,550,416
|
|
|
2,437,113
|
|
|
2,356,884
|
|
|
2,210,124
|
|
|
2,009,995
|
|
Short-term
borrowings
|
|
|
51,980
|
|
|
50,000
|
|
|
50,000
|
|
|
50,000
|
|
|
164,150
|
|
Long-term
debt
|
|
|
14,264
|
|
|
14,769
|
|
|
20,269
|
|
|
60,938
|
|
|
32,250
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
|
|
Accrued interest
payable
|
|
|
1,120
|
|
|
736
|
|
|
1,289
|
|
|
872
|
|
|
1,336
|
|
Other
liabilities
|
|
|
27,358
|
|
|
31,307
|
|
|
30,597
|
|
|
33,446
|
|
|
29,978
|
|
Total
liabilities
|
|
|
2,678,138
|
|
|
2,566,925
|
|
|
2,492,039
|
|
|
2,388,380
|
|
|
2,237,709
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
14,423
|
|
|
14,414
|
|
|
14,468
|
|
|
14,649
|
|
|
14,670
|
|
Capital
surplus
|
|
|
128,854
|
|
|
129,291
|
|
|
130,038
|
|
|
133,002
|
|
|
133,159
|
|
Retained
earnings
|
|
|
177,836
|
|
|
171,023
|
|
|
165,437
|
|
|
159,739
|
|
|
154,806
|
|
Accumulated other
comprehensive gain (loss)
|
|
|
(3,782)
|
|
|
2,149
|
|
|
3,680
|
|
|
4,654
|
|
|
3,428
|
|
Total stockholders'
equity
|
|
|
317,331
|
|
|
316,877
|
|
|
313,623
|
|
|
312,044
|
|
|
306,063
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,995,469
|
|
$
|
2,883,802
|
|
$
|
2,805,662
|
|
$
|
2,700,424
|
|
$
|
2,543,772
|
|
Peoples Financial
Services Corp.
Consolidated
Balance Sheets
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Average quarterly balances
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,054,120
|
|
$
|
2,068,600
|
|
$
|
2,059,357
|
|
$
|
2,032,852
|
|
$
|
1,830,455
|
|
Tax-exempt
|
|
|
125,352
|
|
|
117,650
|
|
|
119,202
|
|
|
127,624
|
|
|
135,260
|
|
Total loans,
net
|
|
|
2,179,472
|
|
|
2,186,250
|
|
|
2,178,559
|
|
|
2,160,476
|
|
|
1,965,715
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
260,238
|
|
|
223,333
|
|
|
241,904
|
|
|
260,160
|
|
|
267,179
|
|
Tax-exempt
|
|
|
72,177
|
|
|
46,361
|
|
|
39,591
|
|
|
43,466
|
|
|
49,046
|
|
Total
investments
|
|
|
332,415
|
|
|
269,694
|
|
|
281,495
|
|
|
303,626
|
|
|
316,225
|
|
Interest-bearing
balances with banks
|
|
|
13,260
|
|
|
26,232
|
|
|
20,250
|
|
|
12,595
|
|
|
8,263
|
|
Federal funds
sold
|
|
|
191,720
|
|
|
185,874
|
|
|
45,439
|
|
|
17,480
|
|
|
|
|
Total interest-bearing
assets
|
|
|
2,716,867
|
|
|
2,668,050
|
|
|
2,525,743
|
|
|
2,494,177
|
|
|
2,290,203
|
|
Other
assets
|
|
|
197,178
|
|
|
204,348
|
|
|
199,433
|
|
|
210,017
|
|
|
193,507
|
|
Total
assets
|
|
$
|
2,914,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
$
|
2,704,194
|
|
$
|
2,483,710
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
$
|
1,833,661
|
|
$
|
1,829,248
|
|
$
|
1,690,440
|
|
$
|
1,605,841
|
|
$
|
1,524,265
|
|
Noninterest-bearing
|
|
|
634,806
|
|
|
596,880
|
|
|
587,448
|
|
|
574,194
|
|
|
462,508
|
|
Total
deposits
|
|
|
2,468,467
|
|
|
2,426,128
|
|
|
2,277,888
|
|
|
2,180,035
|
|
|
1,986,773
|
|
Short-term
borrowings
|
|
|
50,470
|
|
|
50,000
|
|
|
50,038
|
|
|
93,447
|
|
|
142,121
|
|
Long-term
debt
|
|
|
14,509
|
|
|
18,699
|
|
|
21,354
|
|
|
82,117
|
|
|
32,477
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
11,074
|
|
|
|
|
Other
liabilities
|
|
|
23,371
|
|
|
28,946
|
|
|
30,454
|
|
|
28,798
|
|
|
21,096
|
|
Total
liabilities
|
|
|
2,589,817
|
|
|
2,556,773
|
|
|
2,412,734
|
|
|
2,395,471
|
|
|
2,182,467
|
|
Stockholders'
equity
|
|
|
320,228
|
|
|
315,625
|
|
|
312,442
|
|
|
308,723
|
|
|
301,243
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,910,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
$
|
2,704,194
|
|
$
|
2,483,710
|
|
Peoples Financial
Services Corp.
Asset Quality
Data
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
At quarter end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans
|
|
$
|
8,073
|
|
$
|
9,799
|
|
$
|
10,692
|
|
$
|
12,214
|
|
$
|
10,760
|
|
Accruing loans past
due 90 days or more
|
|
|
172
|
|
|
71
|
|
|
52
|
|
|
291
|
|
|
423
|
|
Foreclosed
assets
|
|
|
131
|
|
|
632
|
|
|
649
|
|
|
964
|
|
|
903
|
|
Total nonperforming
assets
|
|
$
|
8,376
|
|
$
|
10,502
|
|
$
|
11,393
|
|
$
|
13,469
|
|
$
|
12,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
|
27,344
|
|
$
|
26,584
|
|
$
|
26,957
|
|
$
|
25,686
|
|
$
|
22,677
|
|
Charge-offs
|
|
|
195
|
|
|
522
|
|
|
1,542
|
|
|
617
|
|
|
798
|
|
Recoveries
|
|
|
134
|
|
|
232
|
|
|
119
|
|
|
88
|
|
|
307
|
|
Provision for loan
losses
|
|
|
(500)
|
|
|
1,050
|
|
|
1,050
|
|
|
1,800
|
|
|
3,500
|
|
Ending
balance
|
|
$
|
26,783
|
|
$
|
27,344
|
|
$
|
26,584
|
|
$
|
26,957
|
|
$
|
25,686
|
|
Peoples Financial
Services Corp.
Reconciliation of
Non-GAAP Financial Measures
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2021
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain on
investment securities
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
|
(39)
|
|
|
(144)
|
|
Add: gain on
investment securities tax adjustment
|
|
|
4
|
|
|
57
|
|
|
96
|
|
|
8
|
|
|
30
|
|
Net income
Core
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
$
|
7,545
|
|
$
|
5,167
|
|
Average common shares
outstanding - basic
|
|
|
7,210,952
|
|
|
7,222,810
|
|
|
7,277,189
|
|
|
7,341,636
|
|
|
7,379,438
|
|
Core net income per
share
|
|
$
|
1.31
|
|
$
|
1.10
|
|
$
|
1.09
|
|
$
|
1.03
|
|
$
|
0.70
|
|
Tangible book
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
317,331
|
|
$
|
316,877
|
|
$
|
313,623
|
|
$
|
312,044
|
|
$
|
306,063
|
|
Less:
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Less: Other
intangible assets, net
|
|
|
835
|
|
|
960
|
|
|
1,104
|
|
|
1,257
|
|
|
1,411
|
|
Total tangible
stockholders' equity
|
|
$
|
253,126
|
|
$
|
252,547
|
|
$
|
249,149
|
|
$
|
247,417
|
|
$
|
241,282
|
|
Common shares
outstanding
|
|
|
7,211,293
|
|
|
7,215,202
|
|
|
7,242,326
|
|
|
7,332,856
|
|
|
7,343,240
|
|
Tangible book value
per share
|
|
$
|
35.10
|
|
$
|
35.00
|
|
$
|
34.40
|
|
$
|
33.74
|
|
$
|
32.86
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain on
investment securities
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
|
(39)
|
|
|
(144)
|
|
Add: gain on
investment securities tax adjustment
|
|
|
4
|
|
|
57
|
|
|
96
|
|
|
8
|
|
|
30
|
|
Net income
Core
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
$
|
7,545
|
|
$
|
5,167
|
|
Average stockholders'
equity
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
$
|
308,723
|
|
$
|
301,243
|
|
Core return on
average stockholders' equity
|
|
|
11.98
|
%
|
|
10.05
|
%
|
|
10.12
|
%
|
|
9.83
|
%
|
|
6.90
|
%
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Average stockholders'
equity
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
$
|
308,723
|
|
$
|
301,243
|
|
Less: average
intangibles
|
|
|
64,268
|
|
|
64,402
|
|
|
64,551
|
|
|
64,704
|
|
|
64,879
|
|
Average tangible
stockholders' equity
|
|
$
|
255,960
|
|
$
|
251,223
|
|
$
|
247,891
|
|
$
|
244,019
|
|
$
|
236,364
|
|
Return on average
tangible stockholders' equity
|
|
|
15.02
|
%
|
|
12.96
|
%
|
|
13.34
|
%
|
|
12.49
|
%
|
|
8.99
|
%
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: gain on
investment securities
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
|
(39)
|
|
|
(144)
|
|
Add: gain on
investment securities tax adjustment
|
|
|
4
|
|
|
57
|
|
|
96
|
|
|
8
|
|
|
30
|
|
Net income
Core
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
$
|
7,545
|
|
$
|
5,167
|
|
Average stockholders'
equity
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
$
|
308,723
|
|
$
|
301,243
|
|
Less: average
intangibles
|
|
|
64,268
|
|
|
64,402
|
|
|
64,551
|
|
|
64,704
|
|
|
64,879
|
|
Average tangible
stockholders' equity
|
|
$
|
255,960
|
|
$
|
251,223
|
|
$
|
247,891
|
|
$
|
244,019
|
|
$
|
236,364
|
|
Core return on
average tangible stockholders' equity
|
|
|
14.99
|
%
|
|
12.62
|
%
|
|
12.76
|
%
|
|
12.44
|
%
|
|
8.79
|
%
|
Core return on
average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
$
|
7,576
|
|
$
|
5,281
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (gain) loss on
investment securities
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
|
(39)
|
|
|
(144)
|
|
Add: (gain) loss on
investment securities tax adjustment
|
|
|
4
|
|
|
57
|
|
|
96
|
|
|
8
|
|
|
30
|
|
Net income
Core
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
$
|
7,545
|
|
$
|
5,167
|
|
Average
assets
|
|
$
|
2,914,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
$
|
2,704,194
|
|
$
|
2,483,710
|
|
Core return on
average assets
|
|
|
1.32
|
%
|
|
1.10
|
%
|
|
1.16
|
%
|
|
1.12
|
%
|
|
0.84
|
%
|
Peoples Financial
Services Corp.
Reconciliation of
Non-GAAP Financial Measures
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Mar 31
|
|
Three Months
Ended
|
|
2021
|
|
2020
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
9,478
|
|
$
|
5,281
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on
investment securities
|
|
|
(21)
|
|
|
(144)
|
|
Add: Gain on
investment securities tax adjustment
|
|
|
4
|
|
|
30
|
|
Net income
Core
|
|
$
|
9,461
|
|
$
|
5,167
|
|
Average basic common
shares outstanding
|
|
|
7,210,952
|
|
|
7,379,438
|
|
Average diluted
common shares outstanding
|
|
|
7,246,016
|
|
|
7,405,703
|
|
Core net income per
share - basic
|
|
$
|
1.31
|
|
$
|
0.70
|
|
Core net income per
share - diluted
|
|
$
|
1.31
|
|
$
|
0.70
|
|
Peoples Financial
Services Corp.
Reconciliation of
Non-GAAP Financial Measures
(In thousands,
except share and per share data)
|
|
The following table
reconciles the non-GAAP financial measures of FTE net interest
income for the three and twelve
months ended December 31, 2020 and 2019:
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
2021
|
|
2020
|
|
Interest income
(GAAP)
|
|
$
|
23,477
|
|
$
|
23,842
|
|
Adjustment to
FTE
|
|
|
335
|
|
|
353
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
23,812
|
|
|
24,195
|
|
Interest
expense
|
|
|
2,709
|
|
|
4,281
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
21,103
|
|
$
|
19,914
|
|
|
|
|
|
|
|
|
|
The efficiency ratio
is noninterest expenses, less amortization of intangible assets, as
a percentage of FTE net interest
income plus noninterest income less gains on equity securities and
gains on sale of assets. The following table reconciles
the non-GAAP financial measures of the efficiency ratio to GAAP for
the three and twelve months ended December 31,
2020 and 2019:
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
2021
|
|
2020
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
12,629
|
|
$
|
13,651
|
|
Less: amortization of
intangible assets expense
|
|
|
125
|
|
|
154
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
12,504
|
|
|
13,497
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
20,768
|
|
|
19,561
|
|
Plus: taxable
equivalent adjustment
|
|
|
335
|
|
|
353
|
|
Noninterest income
(GAAP)
|
|
|
3,517
|
|
|
3,550
|
|
Less: net gains
(loss) on equity securities
|
|
|
21
|
|
|
(123)
|
|
Less: net gains on
sale of securities
|
|
|
|
|
|
267
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
24,599
|
|
$
|
23,320
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
50.83
|
%
|
|
57.88
|
%
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/peoples-financial-services-corp-reports-first-quarter-2021-earnings-301276060.html
SOURCE Peoples Financial Services Corp.