SCRANTON, Pa., Oct. 22, 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
and nine months ended September 30,
2021. Peoples reported net income of $9.1 million, or $1.26 per diluted share for the three months
ended September 30, 2021, an increase
of 10.5% when compared to $8.3
million, or $1.14 per diluted
share for the comparable period of 2020. The increase in
earnings for the three months ended September 30, 2021 is primarily the result of a
$2.1 million increase to
pre-provision net interest income and a $0.6
million decrease to the provision for loan losses, partially
offset by a $1.5 million decrease to
noninterest income, primarily from lower interest rate swap
revenue, and an increase to noninterest expense of $0.3 million.
Net income for the nine months ended September 30, 2021, totaled $27.1 million or $3.74 per diluted share, a 30.3% increase when
compared to $21.2 million or
$2.87 per diluted share for the
comparable period of 2020. The increase in earnings in the
2021 nine month period is the product of a decrease to our
provision for loan losses of $6.3
million, primarily due to an adjustment in the year ago
period to the economic qualitative factors included in our
allowance for loan losses methodology relating to the impact of
COVID-19, an increase to pre-provision net interest income of
$3.1 million and a decrease to
noninterest expense of $0.4
million. Partially offsetting the increase were a
higher income tax provision of $2.3
million and a decrease in noninterest income of $1.6 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 September 30, totaled
$9.1 million and $7.9 million in 2021 and 2020,
respectively. Core net income per share for the three months
ended September 30, 2021 was
$1.26, a 15.6% increase from
$1.09 reported for the same period in
2020. Core net income in the 2021 third quarter excludes a
pre-tax $5 thousand unrealized gain
on our equity investment portfolio. Core net income for 2020
excludes a $2 thousand unrealized
gain on our equity investment portfolio and a $457 thousand gain on the sale of investment
securities.
Core net income for the nine months ended September 30, 2021 was $27.1 million or $3.74 per diluted share, a 33.1% increase when
compared to $20.7 million or
$2.81 per diluted share for the same
period of 2020. Core net income for the current period
excludes a pre-tax unrealized gain of $9
thousand on our equity investment portfolio. Core net
income for 2020 was impacted by a pre-tax gain of $724 thousand on the sale of debt securities and
a $82 thousand unrealized loss on our
equity investment securities portfolio
NOTABLES
- Record first nine month earnings of $27.1 million or $3.74 per diluted share.
- Dividends declared for nine months ended September 30, 2021 of $1.12 per share represents a 3.7% increase from
the same period in 2020.
- Core return on average assets was 1.17% and 1.21% for the three
and nine months ended September 30,
2021 compared to 1.16% and 1.05% for the three and nine
months ended September 30, 2020.
- Core return on average equity was 11.01% and 11.23% for the
three and nine months ended September 30,
2021 compared to 10.12% and 8.98% for the three and nine
months ended September 30, 2020.
- Loan growth during 2021, excluding Paycheck Protection Program
("PPP") loans, totaled $133.9
million, or 6.7%. PPP loan balances at September 30, 2021 total $83.5 million.
- Assisted our small business customers secure $227.8 million of PPP loan forgiveness during the
first nine months of 2021.
- Deposits grew $403.8 million or
16.6% for the nine months ended September
30, 2021 and grew $229.2
million or 8.8% during the three months ended September 30, 2021.
- Book value per share improved to $45.66 at September 30,
2021 from $43.30 at
September 30, 2020, a 5.5%
increase.
- Tangible book value per share, a non-GAAP measure, increased
6.8% to $36.75 at September 30, 2021 from $34.40 at September 30,
2020.
- Tax-equivalent net interest income increased $3.1 million or 5.2% to $64.1 million for the nine months ended
September 30, 2021 compared to
$61.0 million for the same period in
2020.
- Provision for loan losses for the nine months ended
September 30, 2021 decreased
$6.3 million from the comparable nine
month period in 2020.
- Nonperforming assets as a percentage of loans and foreclosed
assets at September 30, 2021 improved
to 0.28% from 0.52% at September 30,
2020, and from 0.33% at June 30,
2021.
- Received regulatory approvals to establish de novo branches in
Warrendale, Allegheny County, PA to serve the Greater Pittsburgh market and in Piscataway, Middlesex County, NJ to serve the central
New Jersey market.
- Relocated our Binghamton, New
York West Side Office due to its growth to a new branch
office at 24 Mary Street, Binghamton to better serve our customers and
provide an aesthetic addition to the local community.
Visa Class B Common Stock Sale
On October 8, 2021, Peoples'
banking subsidiary, Peoples Security Bank and Trust Company (the
"Bank"), agreed to sell 44,982 shares of the Class B common stock
of Visa Inc. for a purchase price of $12.2
million. The shares had no carrying value on the Bank's
balance sheet and, as the Bank had no historical cost basis in the
shares, the entire purchase price will be realized as a pretax
gain. The transaction will have a positive impact on the Bank's
regulatory capital, which will be used for capital management and
to support the Company's organic growth.
The Bank received 73,333 Class B shares of Visa Inc. as part of
its membership interest in March
2008, and 28,351 shares were redeemed in connection with
Visa's initial public offering in 2008. The sale of the remaining
44,982 Class B shares is expected to settle in October, 2021 and be
included in our 2021 fourth-quarter and year-end results as an
after-tax gain of $9.6 million. The
gain on the sale of the Class B shares is not indicative of the
expected results of consolidated operations for those periods.
INCOME STATEMENT REVIEW
Calculated on a fully taxable equivalent basis ("FTE"), our
tax-equivalent net interest margin for the three months ended
September 30, 2021 was 3.07%, a
decrease of 12 basis points when compared to 3.19% for the same
period in 2020. Our tax equivalent net interest margin for
the nine months ended September 30,
2021 was 3.06%, a decrease of 29 basis points when compared
to 3.35% for the nine month period in 2020. The
tax-equivalent yield on interest-earning assets decreased 36 basis
points to 3.37% during the three months ended September 30, 2021 from 3.73% during the year ago
period. For the nine months ended September 30, 2021, the tax-equivalent yield on
interest-earning assets decreased 55 basis points to 3.41% from
3.96% during the corresponding period of 2020. The decrease
in yield is due to lower market rates, a result of the Federal Open
Market Committee ("FOMC") cutting the federal funds rate by 150
basis points in the first three months of 2020. The decrease
in market rates resulted in lower rates on our existing adjustable
rate loans and affected rates on new originations.
Additionally, higher levels of federal funds sold at
historically low rates contributed to the decrease in net interest
margin. At the same time, we experienced lower
interest-bearing liability costs due to lower market rates and our
actions to reduce deposit rates. This was 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 34 basis points to 0.42% for the three
months ended September 30, 2021 when
compared to 0.76% during the year ago period. For the nine
months ended September 30, 2021 our
average rate paid on total interest-bearing liabilities was 0.50% a
decrease of 34 basis points when compared to 0.84% for the same
period in 2020.
Third Quarter 2021 Results – Comparison to Prior-Year
Quarter
Tax-equivalent net interest income for the three months ended
September 30, increased $2.1 million or 10.6% to $22.4 million in 2021 from $20.3 million in 2020. The increase in tax
equivalent net interest income was largely due to lower deposit
costs of $1.1 million due to our
focus to decrease deposit rates in the current low market rate
environment. Also contributing to the increase was higher
loan income of $0.6 million from a
higher rate variance due to Small Business Administration ("SBA")
accelerated forgiveness of PPP loans in the current quarter which
offset the lower rates on the non-PPP loan portfolio, and higher
investment and federal funds sold income due to a higher volume
variance. Total average earning assets increased $365.8 million or 14.5% from the year ago period
due primarily from an increase of $265.6
million in federal funds sold balances resulting from strong
deposit growth. PPP loans averaged $122.3
million in the three-month period ended September 30, 2021 with interest and net fees
totaling $2.5 million compared to
average balances of $216.9 million
and interest and fees totaling $1.2
million in the prior period. The tax-equivalent yield
on the loan portfolio increased to 4.06% for the three months ended
September 30, 2021, compared to 4.02%
for the comparable period in 2020 due to $70.8 million of SBA PPP loan forgiveness and the
resulting acceleration of the remaining unamortized net fees
realized into income. Excluding the PPP loans, the
tax-equivalent yield of the loan portfolio was 3.83% and 4.21% at
September 30, 2021 and 2020,
respectively. Loans, net averaged $2.2
billion for the three months ended September 30, 2021 and 2020. For the three
months ended September 30, the
tax-equivalent yield on total investments decreased to 2.02% in
2021 from 2.30% in 2020. Average investments totaled
$365.5 million in 2021 and
$281.5 million in 2020. Average
interest-bearing liabilities increased $249.5 million for the three months ended
September 30, 2021, compared to the
corresponding period last year the result of higher non-maturity
deposits due to strong organic deposit growth and growth of public
fund deposits which resulted in lowering our short-term and
long-term borrowings.
For the three months ended September 30,
2021, the provision for loan losses decreased $0.6 million to $0.4
million from $1.0 million in
the year ago period which reflected an increase to the asset
quality qualitative factors in our allowance for loan losses
methodology due to deferments requested on commercial loans and
resulting risk rating migration. The provision for loan
losses in the three month period ended September 30, 2021 is the result of growth of
non-PPP loans and improved asset quality.
Noninterest income for the three months ended September 30, 2021 decreased to $3.4 million, a $1.5
million decrease from $4.9
million for the three months ended September 30, 2020. The decrease was
primarily due to a decrease in revenue generated from our
commercial loan interest rate swaps of $1.1
million due to lower transaction volume due to increased
market rates. During the year ago period gains of
$0.5 million were recognized from the
sale of investment securities with no comparable gains recorded in
the current period. Mortgage banking revenue decreased
$0.2 million in the three month
period ended September 30, 2021 from
lower volumes of mortgages sold into the secondary market.
Services charges, fees, commissions and other were higher in the
current period by $0.1 million due to
increased debit card interchange revenue and slightly higher
service charges on consumer and commercial deposit accounts.
Wealth management revenue increased $0.1
million in the three month period ended September 30, 2021 due to an increase to the
number of transactions.
Noninterest expense increased $0.3
million or 2.3% to $14.3
million for the three months ended September 30, 2021, from $14.0 million for the three months ended
September 30, 2020. Other
expenses increased $0.3 million or
11.5% due primarily to higher Pennsylvania shares tax expense, an increase
to our FDIC assessment and an increase to losses on bad checks.
Nine-Month Results – Comparison to Prior Year First Nine
Months
Tax-equivalent net interest income for the nine months ended
September 30, increased $3.1 million or 5.2% to $64.1 million in 2021 from $61.0 million in 2020. The increase in tax
equivalent net interest income was largely due to lower interest
bearing deposit costs of $3.4
million, as deposit rates were lowered in the historically
low market rate environment. Partially offsetting the lower
interest-bearing liability costs was a decrease of $0.5 million to our tax equivalent interest
income primarily from a $0.8 million
decrease in loan interest, as loans continue to reprice lower
during the current low market rate environment. The increase
to total average earning assets of $373.5
million partially offset the lower yields. PPP loans
averaged $179.0 million in the
nine-month period ended September 30,
2021 with interest and fees totaling $6.3 million. The tax-equivalent yield on
the loan portfolio decreased to 4.00% for the nine months ended
September 30, 2021, compared to 4.25%
for the comparable period in 2020 due to lower market rates. PPP
loan balances yielded 4.69% in the current nine month period
compared to 2.32% in the year ago period. The higher yield is
the result of SBA PPP loan forgiveness totaling $227.8 million in the current period. The
loan yield excluding PPP loans was 3.93% in the current period
compared to 4.37% in the year ago period. Loans, net averaged
$2.2 billion for the nine months
ended September 30, 2021 and
$2.1 billion for the nine months
ended September 30, 2020,
respectively. For the nine months ended September 30, the tax-equivalent yield on total
investments decreased to 2.09% in 2021 from 2.41% in 2020.
Average investments totaled $347.1
million in 2021 and $299.2
million in 2020. Average interest-bearing deposits
increased $320.1 million for the nine
months ended September 30, 2021,
compared to the corresponding period last year due to strong
organic deposit growth of new customer relationships and increased
public funds. Total average non-interest bearing deposits
increased $129.2 million for the nine
months ended September 30, 2021,
compared to the comparable period last year which resulted in
lowering our higher costing short-term and long-term
borrowings.
There was no provision for loan losses for the nine months ended
September 30, 2021, a decrease of
$6.3 million from the $6.3 million provision for the comparable period
of 2020. The lower provision in the nine month period ended
September 30, 2021 is due to improved
credit quality and the resulting reversal of the COVID-related
asset quality qualitative factor adjustment made in the year ago
period in our allowance for loan losses methodology. The
higher provision in the year ago period reflects changes made to
the qualitative factors related to economic and credit quality
declines resulting from the onset of the coronavirus pandemic and
its uncertain economic impact.
Noninterest income for the nine months ended September 30, 2021 was $10.4 million compared with $11.9 million for the year ago period, a decrease
of $1.5 million or 13.1%. The
year ago period included a net gain of $0.7
million from the sale of available-for-sale securities,
offset by a $0.1 unrealized loss
related to our equity security. Service charges, fees,
commissions and other are lower in the nine month period ended
September 30, 2021 by $0.1 million as an accrual adjustment to a bank
owned life insurance benefit, a lower Federal Home Loan Bank
dividend and a decrease to service charges on consumer and
commercial deposit accounts were partially offset by an increase to
our debit card interchange revenue. Wealth management revenue
increased $0.3 million in the nine
month period ended September 30, 2021
due to a higher number of transactions and commissions while fees
on fiduciary activities increased $0.2
million due primarily to market appreciation. Revenue
generated from commercial loan interest rate swap transactions
decreased $1.2 million in the nine
month period ended September 30, 2021
due to a decrease in the number of transactions resulting from
unfavorable market rates.
Noninterest expense decreased $0.4
million or 1.0% to $40.4
million for the nine months ended September 30, 2021, from $40.8 million for the nine months ended
September 30, 2020. Salaries
and employee benefits decreased $1.1
million or 4.8% due to higher deferred costs from an
increase in total loan originations which are recorded as a
contra-salary expense and lower health insurance costs.
Occupancy and equipment expenses were higher by $0.2 million due to information technology
investments related to mobile/digital banking solutions in the nine
month period ended September 30,
2021. Other expenses were higher by $0.5 million due primarily to higher Pennsylvania shares tax expense and an
increase in FDIC insurance assessments in the nine month period
ended September 30, 2021 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 $2.3 million for the nine months ended
September 30, 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 September 30, 2021, total
assets, loans and deposits were $3.2
billion, $2.2 billion and
$2.8 billion, respectively. Loan
balances increased from December 31,
2020 as loan demand, exclusive of PPP loans, improved as the
economy recovers from COVID-19. Loan growth during the first
nine months was $133.9 million when
excluding a net decrease of $106.2
million of Small Business Administration ("SBA") PPP
loans. Commercial real estate and tax-exempt loans made up
the majority of growth. During the first nine months of 2021,
$227.8 million of PPP loans were
forgiven by the SBA. Total investments were $494.4 million at September 30, 2021, an increase of $191.1 million from $303.3
million at December 31,
2021. The increase to the investment portfolio results from
investing a portion of our low-yielding federal funds balance into
higher-yielding earning assets. Federal funds sold balance at
September 30, 2021 was $319.5 million, an increase of $136.5 million during the first nine months of
2020 resulting from strong deposit growth. Total deposits increased
$403.8 million or 16.6% from
December 31, 2020 due to organic
growth of customer relationships throughout all our markets,
additional deposits by our commercial customers and seasonal
inflows of municipal deposits. Non-interest bearing deposits
increased $90.1 million or 14.5% and
interest-bearing deposits increased $313.7
million or 17.3% during the nine months ended September 30, 2021.
Stockholders' equity equaled $327.7
million or $45.66 per share at
September 30, 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 $36.75 per share at September 30, 2021, from $35.00 per share at December 31, 2020. Dividends declared for
the nine months ended September 30,
2021 amounted to $1.12 per
share, a 3.7% increase from the 2020 period, representing a
dividend payout ratio of 29.9%.
ASSET QUALITY REVIEW
Nonperforming assets were $6.1
million or 0.28% of loans, net and foreclosed assets at
September 30, 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 year
end was due to improving credit trends, the payoff of two
non-accrual commercial loans and charge-off of a small business
line of credit. The Company's allowance for loan losses
decreased $0.7 million or 2.4% during
the first nine months of 2021. The allowance for loan losses
at September 30, 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
$26.7 million or 1.21% of loans, net
at September 30, 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 1.26% at September
30, 2021. Loans charged-off, net of recoveries, for
the nine months ended September 30,
2021, equaled $0.7 million or
0.04% of average loans, compared to $2.4
million or 0.16% of average loans for the comparable period
last year.
About Peoples:
Peoples Financial Services Corp. is the parent company of
Peoples Security Bank and Trust Company, a community bank serving
Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New
York through 28 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)
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Sept 30
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June 30
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Mar 31
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Dec 31
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Sept 30
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2021
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2021
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2021
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2020
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2020
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Key performance
data:
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Share and per share
amounts:
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Net income
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$
|
1.26
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$
|
1.18
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$
|
1.31
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$
|
1.13
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$
|
1.14
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Core net income
(1)
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$
|
1.26
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$
|
1.18
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$
|
1.31
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$
|
1.10
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$
|
1.09
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Cash dividends
declared
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$
|
0.38
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$
|
0.37
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$
|
0.37
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$
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0.36
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$
|
0.36
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Book value
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$
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45.66
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$
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45.11
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$
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44.00
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$
|
43.92
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$
|
43.30
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Tangible book value
(1)
|
|
$
|
36.75
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$
|
36.21
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$
|
35.10
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$
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35.00
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$
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34.40
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Market
value:
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High
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$
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46.92
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$
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45.38
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$
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47.34
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$
|
40.40
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$
|
39.38
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|
Low
|
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$
|
41.91
|
|
$
|
41.10
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$
|
36.02
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$
|
34.47
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$
|
32.51
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Closing
|
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$
|
45.57
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|
$
|
42.60
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$
|
42.24
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$
|
36.76
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$
|
34.76
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Market
capitalization
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$
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327,057
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$
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306,836
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$
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304,605
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$
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265,231
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$
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251,743
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Common shares
outstanding
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7,177,028
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7,202,728
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7,211,293
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7,215,202
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7,242,326
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Selected
ratios:
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Return on average
stockholders' equity
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11.01
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%
|
|
10.71
|
%
|
|
12.00
|
%
|
|
10.32
|
%
|
|
10.58
|
%
|
Core return on
average stockholders' equity (1)
|
|
|
11.01
|
%
|
|
10.72
|
%
|
|
11.98
|
%
|
|
10.05
|
%
|
|
10.12
|
%
|
Return on average
tangible stockholders' equity
|
|
|
13.69
|
%
|
|
13.39
|
%
|
|
15.02
|
%
|
|
12.96
|
%
|
|
13.34
|
%
|
Core return on
average tangible stockholders' equity (1)
|
|
|
13.68
|
%
|
|
13.41
|
%
|
|
14.99
|
%
|
|
12.62
|
%
|
|
12.76
|
%
|
Return on average
assets
|
|
|
1.17
|
%
|
|
1.14
|
%
|
|
1.32
|
%
|
|
1.13
|
%
|
|
1.21
|
%
|
Core return on
average assets (1)
|
|
|
1.17
|
%
|
|
1.14
|
%
|
|
1.32
|
%
|
|
1.10
|
%
|
|
1.16
|
%
|
Stockholders' equity
to total assets
|
|
|
10.14
|
%
|
|
10.84
|
%
|
|
10.59
|
%
|
|
10.99
|
%
|
|
11.18
|
%
|
Efficiency ratio
(2)
|
|
|
54.87
|
%
|
|
55.71
|
%
|
|
50.83
|
%
|
|
56.35
|
%
|
|
55.94
|
%
|
Nonperforming assets
to loans, net, and foreclosed assets
|
|
|
0.28
|
%
|
|
0.33
|
%
|
|
0.38
|
%
|
|
0.48
|
%
|
|
0.52
|
%
|
Net charge-offs to
average loans, net
|
|
|
0.08
|
%
|
|
0.03
|
%
|
|
0.01
|
%
|
|
0.05
|
%
|
|
0.26
|
%
|
Allowance for loan
losses to loans, net
|
|
|
1.21
|
%
|
|
1.20
|
%
|
|
1.23
|
%
|
|
1.26
|
%
|
|
1.21
|
%
|
Interest-bearing
assets yield (FTE) (3)
|
|
|
3.37
|
%
|
|
3.32
|
%
|
|
3.55
|
%
|
|
3.49
|
%
|
|
3.73
|
%
|
Cost of
funds
|
|
|
0.42
|
%
|
|
0.50
|
%
|
|
0.57
|
%
|
|
0.67
|
%
|
|
0.76
|
%
|
Net interest spread
(FTE) (3)
|
|
|
2.95
|
%
|
|
2.81
|
%
|
|
2.99
|
%
|
|
2.81
|
%
|
|
2.97
|
%
|
Net interest margin
(FTE) (3)
|
|
|
3.07
|
%
|
|
2.96
|
%
|
|
3.15
|
%
|
|
3.00
|
%
|
|
3.19
|
%
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
Sept 30
|
|
Nine Months
Ended
|
|
2021
|
|
2020
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
62,205
|
|
$
|
62,978
|
|
Tax-exempt
|
|
|
2,859
|
|
|
2,848
|
|
Interest and
dividends on investment securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
3,804
|
|
|
4,223
|
|
Tax-exempt
|
|
|
1,233
|
|
|
874
|
|
Dividends
|
|
|
72
|
|
|
71
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
6
|
|
|
27
|
|
Interest on federal
funds sold
|
|
|
228
|
|
|
19
|
|
Total interest
income
|
|
|
70,407
|
|
|
71,040
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
5,731
|
|
|
9,125
|
|
Interest on
short-term borrowings
|
|
|
78
|
|
|
757
|
|
Interest on long-term
debt
|
|
|
225
|
|
|
575
|
|
Interest on
subordinated debt
|
|
|
1,330
|
|
|
591
|
|
Total interest
expense
|
|
|
7,364
|
|
|
11,048
|
|
Net interest
income
|
|
|
63,043
|
|
|
59,992
|
|
Provision for loan
losses
|
|
|
|
|
|
6,350
|
|
Net interest income
after provision for loan losses
|
|
|
63,043
|
|
|
53,642
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service charges,
fees, commissions and other
|
|
|
4,476
|
|
|
4,622
|
|
Merchant services
income
|
|
|
759
|
|
|
723
|
|
Commissions and fees
on fiduciary activities
|
|
|
1,725
|
|
|
1,574
|
|
Wealth management
income
|
|
|
1,207
|
|
|
890
|
|
Mortgage banking
income
|
|
|
764
|
|
|
937
|
|
Increase in cash
surrender value of life insurance
|
|
|
669
|
|
|
572
|
|
Interest rate swap
revenue
|
|
|
744
|
|
|
1,947
|
|
Net gain (loss) on
investment securities
|
|
|
9
|
|
|
(82)
|
|
Net gain on sale of
investment securities available-for-sale
|
|
|
|
|
|
724
|
|
Total noninterest
income
|
|
|
10,353
|
|
|
11,907
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
21,649
|
|
|
22,735
|
|
Net occupancy and
equipment expense
|
|
|
9,464
|
|
|
9,252
|
|
Amortization of
intangible assets
|
|
|
375
|
|
|
462
|
|
Other
expenses
|
|
|
8,960
|
|
|
8,418
|
|
Total noninterest
expense
|
|
|
40,448
|
|
|
40,867
|
|
Income before income
taxes
|
|
|
32,948
|
|
|
24,682
|
|
Provision for income
tax expense
|
|
|
5,843
|
|
|
3,513
|
|
Net income
|
|
$
|
27,105
|
|
$
|
21,169
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
|
$
|
(8,409)
|
|
$
|
9,084
|
|
Reclassification
adjustment for gains included in net income
|
|
|
|
|
|
(724)
|
|
Change in derivative
fair value
|
|
|
(22)
|
|
|
356
|
|
Income tax related to
other comprehensive income
|
|
|
(1,771)
|
|
|
1,830
|
|
Other comprehensive
income, net of income taxes
|
|
|
(6,660)
|
|
|
6,886
|
|
Comprehensive
income
|
|
$
|
20,445
|
|
$
|
28,055
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
3.76
|
|
$
|
2.89
|
|
Net income -
diluted
|
|
|
3.74
|
|
|
2.87
|
|
Cash dividends
declared
|
|
$
|
1.12
|
|
$
|
1.08
|
|
Average common shares
outstanding - basic
|
|
|
7,204,399
|
|
|
7,332,539
|
|
Average common shares
outstanding - diluted
|
|
|
7,239,463
|
|
|
7,364,693
|
|
Peoples Financial
Services Corp. Consolidated Statements of Income
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
21,276
|
|
$
|
20,029
|
|
$
|
20,900
|
|
$
|
20,705
|
|
$
|
20,901
|
|
Tax-exempt
|
|
|
1,024
|
|
|
965
|
|
|
870
|
|
|
888
|
|
|
876
|
|
Interest and
dividends on investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,285
|
|
|
1,276
|
|
|
1,243
|
|
|
1,111
|
|
|
1,250
|
|
Tax-exempt
|
|
|
432
|
|
|
411
|
|
|
390
|
|
|
304
|
|
|
280
|
|
Dividends
|
|
|
24
|
|
|
25
|
|
|
23
|
|
|
26
|
|
|
23
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
Interest on federal
funds sold
|
|
|
124
|
|
|
55
|
|
|
49
|
|
|
47
|
|
|
12
|
|
Total interest
income
|
|
|
24,167
|
|
|
22,763
|
|
|
23,477
|
|
|
23,085
|
|
|
23,346
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
1,698
|
|
|
1,941
|
|
|
2,092
|
|
|
2,614
|
|
|
2,758
|
|
Interest on
short-term borrowings
|
|
|
|
|
|
6
|
|
|
71
|
|
|
91
|
|
|
82
|
|
Interest on long-term
debt
|
|
|
41
|
|
|
82
|
|
|
103
|
|
|
127
|
|
|
139
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
Total interest
expense
|
|
|
2,182
|
|
|
2,473
|
|
|
2,709
|
|
|
3,276
|
|
|
3,422
|
|
Net interest
income
|
|
|
21,985
|
|
|
20,290
|
|
|
20,768
|
|
|
19,809
|
|
|
19,924
|
|
Provision (credit)
for loan losses
|
|
|
400
|
|
|
100
|
|
|
(500)
|
|
|
1,050
|
|
|
1,050
|
|
Net interest income
after provision (credit) for loan losses
|
|
|
21,585
|
|
|
20,190
|
|
|
21,268
|
|
|
18,759
|
|
|
18,874
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges,
fees, commissions and other
|
|
|
1,667
|
|
|
1,625
|
|
|
1,184
|
|
|
2,187
|
|
|
1,584
|
|
Merchant services
income
|
|
|
158
|
|
|
508
|
|
|
93
|
|
|
101
|
|
|
137
|
|
Commissions and fees
on fiduciary activities
|
|
|
639
|
|
|
553
|
|
|
533
|
|
|
551
|
|
|
575
|
|
Wealth management
income
|
|
|
432
|
|
|
417
|
|
|
358
|
|
|
392
|
|
|
272
|
|
Mortgage banking
income
|
|
|
244
|
|
|
208
|
|
|
312
|
|
|
658
|
|
|
488
|
|
Increase in cash
surrender value of life insurance
|
|
|
225
|
|
|
225
|
|
|
219
|
|
|
202
|
|
|
192
|
|
Interest rate swap
revenue (expense)
|
|
|
79
|
|
|
(132)
|
|
|
797
|
|
|
374
|
|
|
1,228
|
|
Net gain (loss) on
investment securities
|
|
|
5
|
|
|
(17)
|
|
|
21
|
|
|
76
|
|
|
2
|
|
Net gain on sale of
investment securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
194
|
|
|
457
|
|
Total noninterest
income
|
|
|
3,449
|
|
|
3,387
|
|
|
3,517
|
|
|
4,735
|
|
|
4,935
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
7,829
|
|
|
7,250
|
|
|
6,570
|
|
|
7,400
|
|
|
7,831
|
|
Net occupancy and
equipment expense
|
|
|
3,150
|
|
|
3,047
|
|
|
3,267
|
|
|
3,588
|
|
|
3,131
|
|
Amortization of
intangible assets
|
|
|
125
|
|
|
125
|
|
|
125
|
|
|
144
|
|
|
154
|
|
Other
expenses
|
|
|
3,187
|
|
|
3,106
|
|
|
2,667
|
|
|
2,869
|
|
|
2,858
|
|
Total noninterest
expense
|
|
|
14,291
|
|
|
13,528
|
|
|
12,629
|
|
|
14,001
|
|
|
13,974
|
|
Income before income
taxes
|
|
|
10,743
|
|
|
10,049
|
|
|
12,156
|
|
|
9,493
|
|
|
9,835
|
|
Income tax
expense
|
|
|
1,647
|
|
|
1,518
|
|
|
2,678
|
|
|
1,308
|
|
|
1,523
|
|
Net income
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
|
$
|
(3,130)
|
|
$
|
2,470
|
|
$
|
(7,749)
|
|
$
|
(305)
|
|
$
|
(639)
|
|
Reclassification
adjustment for gains included in net income
|
|
|
|
|
|
|
|
|
|
|
|
(194)
|
|
|
(457)
|
|
Change in benefit
plan liabilities
|
|
|
|
|
|
|
|
|
|
|
|
(1,398)
|
|
|
|
|
Change in derivative
fair value
|
|
|
(128)
|
|
|
(135)
|
|
|
242
|
|
|
(41)
|
|
|
(137)
|
|
Income tax related to
other comprehensive income
|
|
|
(684)
|
|
|
490
|
|
|
(1,576)
|
|
|
(407)
|
|
|
(260)
|
|
Other comprehensive
income, net of income taxes
|
|
|
(2,574)
|
|
|
1,845
|
|
|
(5,931)
|
|
|
(1,531)
|
|
|
(973)
|
|
Comprehensive
income
|
|
$
|
6,522
|
|
$
|
10,376
|
|
$
|
3,547
|
|
$
|
6,654
|
|
$
|
7,339
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.26
|
|
$
|
1.18
|
|
$
|
1.31
|
|
$
|
1.13
|
|
$
|
1.14
|
|
Net income -
diluted
|
|
|
1.26
|
|
|
1.18
|
|
|
1.31
|
|
|
1.13
|
|
|
1.14
|
|
Cash dividends
declared
|
|
$
|
0.38
|
|
$
|
0.37
|
|
$
|
0.37
|
|
$
|
0.36
|
|
$
|
0.36
|
|
Average common shares
outstanding - basic
|
|
|
7,198,125
|
|
|
7,204,261
|
|
|
7,210,952
|
|
|
7,222,810
|
|
|
7,277,189
|
|
Average common shares
outstanding - diluted
|
|
|
7,233,189
|
|
|
7,239,325
|
|
|
7,246,016
|
|
|
7,257,874
|
|
|
7,312,253
|
|
Peoples Financial
Services Corp. Details of Net Interest and Net Interest
Margin (In thousands, fully taxable equivalent
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
21,276
|
|
$
|
20,029
|
|
$
|
20,900
|
|
$
|
20,705
|
|
$
|
20,901
|
|
Tax-exempt
|
|
|
1,296
|
|
|
1,222
|
|
|
1,101
|
|
|
1,124
|
|
|
1,109
|
|
Total loans,
net
|
|
|
22,572
|
|
|
21,251
|
|
|
22,001
|
|
|
21,829
|
|
|
22,010
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,310
|
|
|
1,301
|
|
|
1,266
|
|
|
1,137
|
|
|
1,273
|
|
Tax-exempt
|
|
|
547
|
|
|
520
|
|
|
494
|
|
|
385
|
|
|
354
|
|
Total
investments
|
|
|
1,857
|
|
|
1,821
|
|
|
1,760
|
|
|
1,522
|
|
|
1,627
|
|
Interest on
interest-bearing balances in other banks
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
Federal funds
sold
|
|
|
124
|
|
|
55
|
|
|
49
|
|
|
47
|
|
|
12
|
|
Total interest
income
|
|
|
24,555
|
|
|
23,129
|
|
|
23,812
|
|
|
23,402
|
|
|
23,653
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,698
|
|
|
1,941
|
|
|
2,092
|
|
|
2,614
|
|
|
2,758
|
|
Short-term
borrowings
|
|
|
|
|
|
6
|
|
|
71
|
|
|
91
|
|
|
82
|
|
Long-term
debt
|
|
|
41
|
|
|
82
|
|
|
103
|
|
|
127
|
|
|
139
|
|
Subordinated
debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
Total interest
expense
|
|
|
2,182
|
|
|
2,473
|
|
|
2,709
|
|
|
3,276
|
|
|
3,422
|
|
Net interest
income
|
|
$
|
22,373
|
|
$
|
20,656
|
|
$
|
21,103
|
|
$
|
20,126
|
|
$
|
20,231
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
4.15
|
%
|
|
3.87
|
%
|
|
4.13
|
%
|
|
3.98
|
%
|
|
4.04
|
%
|
Tax-exempt
|
|
|
3.04
|
%
|
|
3.30
|
%
|
|
3.56
|
%
|
|
3.80
|
%
|
|
3.70
|
%
|
Total loans,
net
|
|
|
4.06
|
%
|
|
3.83
|
%
|
|
4.09
|
%
|
|
3.97
|
%
|
|
4.02
|
%
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1.85
|
%
|
|
1.97
|
%
|
|
1.97
|
%
|
|
2.03
|
%
|
|
2.09
|
%
|
Tax-exempt
|
|
|
2.56
|
%
|
|
2.66
|
%
|
|
2.78
|
%
|
|
3.30
|
%
|
|
3.56
|
%
|
Total
investments
|
|
|
2.02
|
%
|
|
2.13
|
%
|
|
2.15
|
%
|
|
2.25
|
%
|
|
2.30
|
%
|
Interest-bearing
balances with banks
|
|
|
0.07
|
%
|
|
0.08
|
%
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.08
|
%
|
Federal funds
sold
|
|
|
0.16
|
%
|
|
0.10
|
%
|
|
0.10
|
%
|
|
0.10
|
%
|
|
0.11
|
%
|
Total interest-bearing
assets
|
|
|
3.37
|
%
|
|
3.32
|
%
|
|
3.55
|
%
|
|
3.49
|
%
|
|
3.73
|
%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
0.34
|
%
|
|
0.41
|
%
|
|
0.46
|
%
|
|
0.57
|
%
|
|
0.65
|
%
|
Short-term
borrowings
|
|
|
|
|
|
0.33
|
%
|
|
0.57
|
%
|
|
0.72
|
%
|
|
0.65
|
%
|
Long-term
debt
|
|
|
4.68
|
%
|
|
2.98
|
%
|
|
2.88
|
%
|
|
2.70
|
%
|
|
2.59
|
%
|
Subordinated
debt
|
|
|
5.37
|
%
|
|
5.38
|
%
|
|
5.38
|
%
|
|
5.38
|
%
|
|
5.37
|
%
|
Total interest-bearing
liabilities
|
|
|
0.42
|
%
|
|
0.50
|
%
|
|
0.57
|
%
|
|
0.67
|
%
|
|
0.76
|
%
|
Net interest
spread
|
|
|
2.95
|
%
|
|
2.81
|
%
|
|
2.98
|
%
|
|
2.81
|
%
|
|
2.97
|
%
|
Net interest
margin
|
|
|
3.07
|
%
|
|
2.96
|
%
|
|
3.15
|
%
|
|
3.00
|
%
|
|
3.19
|
%
|
Peoples Financial
Services Corp. Consolidated Balance Sheets (In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
At period end
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
33,662
|
|
$
|
41,789
|
|
$
|
30,786
|
|
$
|
29,287
|
|
$
|
42,940
|
|
Interest-bearing
balances in other banks
|
|
|
7,425
|
|
|
10,262
|
|
|
8,432
|
|
|
15,905
|
|
|
20,972
|
|
Federal funds
sold
|
|
|
319,500
|
|
|
196,000
|
|
|
264,100
|
|
|
183,000
|
|
|
102,300
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
461,372
|
|
|
336,449
|
|
|
333,753
|
|
|
295,911
|
|
|
247,404
|
|
Equity investments
carried at fair value
|
|
|
147
|
|
|
142
|
|
|
159
|
|
|
138
|
|
|
341
|
|
Held-to-maturity
|
|
|
32,848
|
|
|
7,104
|
|
|
7,166
|
|
|
7,225
|
|
|
7,297
|
|
Loans held for
sale
|
|
|
997
|
|
|
1,545
|
|
|
458
|
|
|
837
|
|
|
2,161
|
|
Loans, net
|
|
|
2,205,661
|
|
|
2,236,826
|
|
|
2,179,534
|
|
|
2,177,982
|
|
|
2,188,463
|
|
Less: allowance for
loan losses
|
|
|
26,693
|
|
|
26,739
|
|
|
26,783
|
|
|
27,344
|
|
|
26,584
|
|
Net loans
|
|
|
2,178,968
|
|
|
2,210,087
|
|
|
2,152,751
|
|
|
2,150,638
|
|
|
2,161,879
|
|
Premises and
equipment, net
|
|
|
50,682
|
|
|
46,305
|
|
|
46,777
|
|
|
47,045
|
|
|
47,926
|
|
Accrued interest
receivable
|
|
|
8,280
|
|
|
7,844
|
|
|
8,206
|
|
|
8,255
|
|
|
8,595
|
|
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Other intangible
assets, net
|
|
|
584
|
|
|
710
|
|
|
835
|
|
|
960
|
|
|
1,104
|
|
Bank owned life
insurance
|
|
|
42,734
|
|
|
42,750
|
|
|
42,530
|
|
|
42,316
|
|
|
37,099
|
|
Other
assets
|
|
|
32,956
|
|
|
33,379
|
|
|
36,146
|
|
|
38,915
|
|
|
62,274
|
|
Total
assets
|
|
$
|
3,233,525
|
|
$
|
2,997,736
|
|
$
|
2,995,469
|
|
$
|
2,883,802
|
|
$
|
2,805,662
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
712,601
|
|
$
|
672,274
|
|
$
|
661,262
|
|
$
|
622,475
|
|
$
|
579,196
|
|
Interest-bearing
|
|
|
2,128,318
|
|
|
1,939,492
|
|
|
1,889,154
|
|
|
1,814,638
|
|
|
1,777,688
|
|
Total
deposits
|
|
|
2,840,919
|
|
|
2,611,766
|
|
|
2,550,416
|
|
|
2,437,113
|
|
|
2,356,884
|
|
Short-term
borrowings
|
|
|
|
|
|
|
|
|
51,980
|
|
|
50,000
|
|
|
50,000
|
|
Long-term
debt
|
|
|
3,235
|
|
|
3,752
|
|
|
14,264
|
|
|
14,769
|
|
|
20,269
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Accrued interest
payable
|
|
|
872
|
|
|
469
|
|
|
1,120
|
|
|
736
|
|
|
1,289
|
|
Other
liabilities
|
|
|
27,767
|
|
|
23,858
|
|
|
27,358
|
|
|
31,307
|
|
|
30,597
|
|
Total
liabilities
|
|
|
2,905,793
|
|
|
2,672,845
|
|
|
2,678,138
|
|
|
2,566,925
|
|
|
2,492,039
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
14,356
|
|
|
14,407
|
|
|
14,423
|
|
|
14,414
|
|
|
14,468
|
|
Capital
surplus
|
|
|
127,826
|
|
|
128,719
|
|
|
128,854
|
|
|
129,291
|
|
|
130,038
|
|
Retained
earnings
|
|
|
190,061
|
|
|
183,702
|
|
|
177,836
|
|
|
171,023
|
|
|
165,437
|
|
Accumulated other
comprehensive gain (loss)
|
|
|
(4,511)
|
|
|
(1,937)
|
|
|
(3,782)
|
|
|
2,149
|
|
|
3,680
|
|
Total stockholders'
equity
|
|
|
327,732
|
|
|
324,891
|
|
|
317,331
|
|
|
316,877
|
|
|
313,623
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,233,525
|
|
$
|
2,997,736
|
|
$
|
2,995,469
|
|
$
|
2,883,802
|
|
$
|
2,805,662
|
|
Peoples Financial
Services Corp. Consolidated Balance Sheets (In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Average quarterly balances
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,033,752
|
|
$
|
2,075,808
|
|
$
|
2,054,120
|
|
$
|
2,068,600
|
|
$
|
2,059,357
|
|
Tax-exempt
|
|
|
169,273
|
|
|
148,747
|
|
|
125,352
|
|
|
117,650
|
|
|
119,202
|
|
Total loans,
net
|
|
|
2,203,025
|
|
|
2,224,555
|
|
|
2,179,472
|
|
|
2,186,250
|
|
|
2,178,559
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
280,767
|
|
|
264,490
|
|
|
260,238
|
|
|
223,333
|
|
|
241,904
|
|
Tax-exempt
|
|
|
84,701
|
|
|
78,521
|
|
|
72,177
|
|
|
46,361
|
|
|
39,591
|
|
Total
investments
|
|
|
365,468
|
|
|
343,011
|
|
|
332,415
|
|
|
269,694
|
|
|
281,495
|
|
Interest-bearing
balances with banks
|
|
|
12,004
|
|
|
9,653
|
|
|
13,260
|
|
|
26,232
|
|
|
20,250
|
|
Federal funds
sold
|
|
|
311,015
|
|
|
220,247
|
|
|
191,720
|
|
|
185,874
|
|
|
45,439
|
|
Total interest-bearing
assets
|
|
|
2,891,512
|
|
|
2,797,466
|
|
|
2,716,867
|
|
|
2,668,050
|
|
|
2,525,743
|
|
Other
assets
|
|
|
202,456
|
|
|
199,082
|
|
|
197,178
|
|
|
204,348
|
|
|
199,433
|
|
Total
assets
|
|
$
|
3,093,968
|
|
$
|
2,996,548
|
|
$
|
2,914,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
$
|
2,007,868
|
|
$
|
1,921,754
|
|
$
|
1,833,661
|
|
$
|
1,829,248
|
|
$
|
1,690,440
|
|
Noninterest-bearing
|
|
|
696,331
|
|
|
680,431
|
|
|
634,806
|
|
|
596,880
|
|
|
587,448
|
|
Total
deposits
|
|
|
2,704,199
|
|
|
2,602,185
|
|
|
2,468,467
|
|
|
2,426,128
|
|
|
2,277,888
|
|
Short-term
borrowings
|
|
|
|
|
|
7,300
|
|
|
50,470
|
|
|
50,000
|
|
|
50,038
|
|
Long-term
debt
|
|
|
3,475
|
|
|
11,025
|
|
|
14,509
|
|
|
18,699
|
|
|
21,354
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Other
liabilities
|
|
|
25,635
|
|
|
23,420
|
|
|
27,371
|
|
|
28,946
|
|
|
30,454
|
|
Total
liabilities
|
|
|
2,766,309
|
|
|
2,676,930
|
|
|
2,593,817
|
|
|
2,556,773
|
|
|
2,412,734
|
|
Stockholders'
equity
|
|
|
327,659
|
|
|
319,618
|
|
|
320,228
|
|
|
315,625
|
|
|
312,442
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,093,968
|
|
$
|
2,996,548
|
|
$
|
2,914,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
Peoples Financial
Services Corp. Asset Quality Data (In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
At quarter end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans
|
|
$
|
5,559
|
|
$
|
7,216
|
|
$
|
8,073
|
|
$
|
9,799
|
|
$
|
10,692
|
|
Accruing loans past
due 90 days or more
|
|
|
78
|
|
|
49
|
|
|
172
|
|
|
71
|
|
|
52
|
|
Foreclosed
assets
|
|
|
487
|
|
|
29
|
|
|
131
|
|
|
632
|
|
|
649
|
|
Total nonperforming
assets
|
|
$
|
6,124
|
|
$
|
7,294
|
|
$
|
8,376
|
|
$
|
10,502
|
|
$
|
11,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
|
26,739
|
|
$
|
26,783
|
|
$
|
27,344
|
|
$
|
26,584
|
|
$
|
26,957
|
|
Charge-offs
|
|
|
466
|
|
|
190
|
|
|
195
|
|
|
522
|
|
|
1,542
|
|
Recoveries
|
|
|
20
|
|
|
46
|
|
|
134
|
|
|
232
|
|
|
119
|
|
Provision for loan
losses
|
|
|
400
|
|
|
100
|
|
|
(500)
|
|
|
1,050
|
|
|
1,050
|
|
Ending
balance
|
|
$
|
26,693
|
|
$
|
26,739
|
|
$
|
26,783
|
|
$
|
27,344
|
|
$
|
26,584
|
|
Peoples Financial
Services Corp. Reconciliation of Non-GAAP Financial
Measures (In thousands, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2020
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (gain) loss on
investment securities
|
|
|
(5)
|
|
|
17
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
Add: (gain) loss on
investment securities tax adjustment
|
|
|
1
|
|
|
(4)
|
|
|
4
|
|
|
57
|
|
|
96
|
|
Net income
Core
|
|
$
|
9,092
|
|
$
|
8,544
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
Average common shares
outstanding - diluted
|
|
|
7,233,189
|
|
|
7,239,325
|
|
|
7,246,016
|
|
|
7,257,874
|
|
|
7,312,253
|
|
Core net income per
share
|
|
$
|
1.26
|
|
$
|
1.18
|
|
$
|
1.31
|
|
$
|
1.10
|
|
$
|
1.09
|
|
Tangible book
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
327,732
|
|
$
|
324,891
|
|
$
|
317,331
|
|
$
|
316,877
|
|
$
|
313,623
|
|
Less:
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Less: Other
intangible assets, net
|
|
|
584
|
|
|
710
|
|
|
835
|
|
|
960
|
|
|
1,104
|
|
Total tangible
stockholders' equity
|
|
$
|
263,778
|
|
$
|
260,811
|
|
$
|
253,126
|
|
$
|
252,547
|
|
$
|
249,149
|
|
Common shares
outstanding
|
|
|
7,177,028
|
|
|
7,202,728
|
|
|
7,211,293
|
|
|
7,215,202
|
|
|
7,242,326
|
|
Tangible book value
per share
|
|
$
|
36.75
|
|
$
|
36.21
|
|
$
|
35.10
|
|
$
|
35.00
|
|
$
|
34.40
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (gain) loss on
investment securities
|
|
|
(5)
|
|
|
17
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
Add: (gain) loss on
investment securities tax adjustment
|
|
|
1
|
|
|
(4)
|
|
|
4
|
|
|
57
|
|
|
96
|
|
Net income
Core
|
|
$
|
9,092
|
|
$
|
8,544
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
Average stockholders'
equity
|
|
$
|
327,659
|
|
$
|
319,618
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
Core return on
average stockholders' equity
|
|
|
11.01
|
%
|
|
10.72
|
%
|
|
11.98
|
%
|
|
10.05
|
%
|
|
10.12
|
%
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Average stockholders'
equity
|
|
$
|
327,659
|
|
$
|
319,618
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
Less: average
intangibles
|
|
|
64,017
|
|
|
64,143
|
|
|
64,268
|
|
|
64,402
|
|
|
64,551
|
|
Average tangible
stockholders' equity
|
|
$
|
263,642
|
|
$
|
255,475
|
|
$
|
255,960
|
|
$
|
251,223
|
|
$
|
247,891
|
|
Return on average
tangible stockholders' equity
|
|
|
13.69
|
%
|
|
13.39
|
%
|
|
15.02
|
%
|
|
12.96
|
%
|
|
13.34
|
%
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (gain) loss on
investment securities
|
|
|
(5)
|
|
|
17
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
Add: (gain) loss on
investment securities tax adjustment
|
|
|
1
|
|
|
(4)
|
|
|
4
|
|
|
57
|
|
|
96
|
|
Net income
Core
|
|
$
|
9,092
|
|
$
|
8,544
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
Average stockholders'
equity
|
|
$
|
327,659
|
|
$
|
319,618
|
|
$
|
320,228
|
|
$
|
315,625
|
|
$
|
312,442
|
|
Less: average
intangibles
|
|
|
64,017
|
|
|
64,143
|
|
|
64,268
|
|
|
64,402
|
|
|
64,551
|
|
Average tangible
stockholders' equity
|
|
$
|
263,642
|
|
$
|
225,475
|
|
$
|
255,960
|
|
$
|
251,223
|
|
$
|
247,891
|
|
Core return on
average tangible stockholders' equity
|
|
|
13.68
|
%
|
|
13.41
|
%
|
|
14.99
|
%
|
|
12.62
|
%
|
|
12.76
|
%
|
Core return on
average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,096
|
|
$
|
8,531
|
|
$
|
9,478
|
|
$
|
8,185
|
|
$
|
8,312
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (gain) loss on
investment securities
|
|
|
(5)
|
|
|
17
|
|
|
(21)
|
|
|
(270)
|
|
|
(459)
|
|
Add: (gain) loss on
investment securities tax adjustment
|
|
|
1
|
|
|
(4)
|
|
|
4
|
|
|
57
|
|
|
96
|
|
Net income
Core
|
|
$
|
9,092
|
|
$
|
8,544
|
|
$
|
9,461
|
|
$
|
7,972
|
|
$
|
7,949
|
|
Average
assets
|
|
$
|
3,093,968
|
|
$
|
2,996,548
|
|
$
|
2,914,045
|
|
$
|
2,872,398
|
|
$
|
2,725,176
|
|
Core return on
average assets
|
|
|
1.17
|
%
|
|
1.14
|
%
|
|
1.32
|
%
|
|
1.10
|
%
|
|
1.16
|
%
|
Peoples Financial
Services Corp. Reconciliation of Non-GAAP Financial
Measures (In thousands, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
Sept 30
|
|
Nine Months
Ended
|
|
2021
|
|
2020
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$
|
27,105
|
|
$
|
21,169
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on
investment securities
|
|
|
|
|
|
724
|
|
Less: Gain (loss) on
equity securities
|
|
|
9
|
|
|
(82)
|
|
Add: Gain on
investment securities tax adjustment
|
|
|
|
|
|
152
|
|
Add: Gain (loss) on
equity securites line tax adjustment
|
|
|
2
|
|
|
(17)
|
|
Net income
Core
|
|
$
|
27,098
|
|
$
|
20,662
|
|
Average basic common
shares outstanding
|
|
|
7,204,399
|
|
|
7,332,539
|
|
Average diluted
common shares outstanding
|
|
|
7,239,463
|
|
|
7,364,693
|
|
Core net income per
share - basic
|
|
$
|
3.76
|
|
$
|
2.82
|
|
Core net income per
share - diluted
|
|
$
|
3.74
|
|
$
|
2.81
|
|
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 nine months ended September 30, 2021 and
2020:
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30
|
|
2021
|
|
2020
|
|
Interest income
(GAAP)
|
|
$
|
24,167
|
|
$
|
23,346
|
|
Adjustment to
FTE
|
|
|
388
|
|
|
307
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
24,555
|
|
|
23,653
|
|
Interest
expense
|
|
|
2,182
|
|
|
3,422
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
22,373
|
|
$
|
20,231
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30
|
|
2021
|
|
2020
|
|
Interest income
(GAAP)
|
|
$
|
70,407
|
|
$
|
71,040
|
|
Adjustment to
FTE
|
|
|
1,089
|
|
|
989
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
71,496
|
|
|
72,029
|
|
Interest
expense
|
|
|
7,364
|
|
|
11,048
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
64,132
|
|
$
|
60,981
|
|
|
|
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 nine months ended
September 30, 2021 and 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30
|
|
2021
|
|
2020
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
14,291
|
|
$
|
13,974
|
|
Less: amortization of
intangible assets expense
|
|
|
125
|
|
|
154
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
14,166
|
|
|
13,820
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
21,985
|
|
|
19,924
|
|
Plus: taxable
equivalent adjustment
|
|
|
388
|
|
|
307
|
|
Noninterest income
(GAAP)
|
|
|
3,449
|
|
|
4,935
|
|
Less: net gains on
equity securities
|
|
|
5
|
|
|
2
|
|
Less: net gains on
sale of securities
|
|
|
|
|
|
457
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
25,817
|
|
$
|
24,707
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
54.87
|
%
|
|
55.94
|
%
|
|
|
|
|
|
|
|
|
Nine months ended
September 30
|
|
2021
|
|
2020
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
40,448
|
|
$
|
40,867
|
|
Less: amortization of
intangible assets expense
|
|
|
375
|
|
|
462
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
40,073
|
|
|
40,405
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
63,043
|
|
|
59,992
|
|
Plus: taxable
equivalent adjustment
|
|
|
1,089
|
|
|
989
|
|
Noninterest income
(GAAP)
|
|
|
10,353
|
|
|
11,907
|
|
Less: net gains
(losses) on equity securities
|
|
|
9
|
|
|
(82)
|
|
Less: net gains on
sale of investment securities
|
|
|
|
|
|
724
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
74,476
|
|
$
|
72,246
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
53.81
|
%
|
|
55.93
|
%
|
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SOURCE Peoples Financial Services Corp.