SCRANTON, Pa., Oct. 30,
2023 /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 and nine months ended September 30, 2023.
Peoples reported net income of $6.7
million, or $0.95 per diluted
share for the three months ended September
30, 2023, a 32.3% decrease when compared to $10.0 million, or $1.38 per share for the comparable period of
2022. Quarterly net income included lower net interest income of
$3.7 million due to higher deposit
costs, and higher operating expenses of $1.1
million mainly due to acquisition related expenses as noted
below, partially offset by a lower provision for credit losses of
$0.6 million and higher noninterest
income of $0.4 million.
For the nine months ended September 30,
2023, net income was $23.8
million, or $3.31 per diluted
share, a 17.5% decrease when compared to $29.0 million, or $4.01 per diluted share for the comparable period
of 2022. Net interest income for the current period decreased
$4.9 million when compared to the
nine months ended September 30, 2022
as higher interest income due to increased rates was more than
offset by increased funding costs. Higher operating expenses
of $4.5 million were partially offset
by a $2.8 million decrease to the
provision for credit losses and a $0.3
million increase in noninterest income.
Core net income, a non-GAAP measure1, excludes
acquisition related expenses from the previously announced
combination further discussed below, of $869
thousand and $990 thousand
incurred during the three and nine months ended September 30, 2023, respectively. Core net
income totaled $7.5 million or
$1.05 per diluted share for the three
months ended September 30, 2023
compared to $10.0 million, or
$1.38 per share for the comparable
period of 2022. For the nine months ended September 30, 2023, core net income was
$24.5 million and $3.42 per diluted share, compared to $29.0 million and $4.01 per diluted share in the year ago
period.
STRATEGIC COMBINATION WITH FNCB BANCORP, INC.
On September 27, 2023, Peoples
announced it had entered into a definitive agreement to
strategically combine with FNCB Bancorp, Inc., the parent company
of FNCB Bank ("FNCB"). The transaction is expected to close
in the first half of 2024, subject to satisfaction of customary
closing conditions, including regulatory approvals and shareholder
approval from both Peoples and FNCB shareholders. Highlights
of the proposed transaction include:
- Strategic merger that creates a bank holding company with
nearly $5.5 billion in assets.
- #2 ranked deposit market share in the Scranton-Wilkes
Barre metro statistical area and #5 ranked Pennsylvania-headquartered community bank
under $20 billion in total
assets.
- The proposed transaction is projected to deliver estimated 59%
EPS accretion to Peoples in 2025, inclusive of all merger
synergies, and a 51% dividend increase to Peoples
shareholders.
FINANCIAL HIGHLIGHTS
- Net income for the nine months ended September 30, 2023 was $23.8 million or $3.31 per diluted share.
- Dividends paid during the nine months ended September 30, 2023 totaled $1.23 per share representing a 4.2% increase from
the comparable period in 2022.
- Net loan growth for the three and nine months ended
September 30, 2023 was $27.7 million and $140.9
million and consisted primarily of commercial real estate
loans.
- Total deposits grew $318.5
million to $3.4 billion during
the first nine months of 2023 with core deposits, excluding
brokered deposits, increasing $70.5
million or 2.3% during the same period. Core deposits
increased $135.6 million during the
three months ended September 30, 2023
due in part to seasonal inflows of municipal deposits.
- At September 30, 2023, the
Company had $254.5 million in cash
and cash equivalents, an increase of $216.7
million from December 31,
2022. Additional contingent sources of available liquidity
total $1.6 billion and include lines
of credit at the Federal Reserve Bank and Federal Home Loan Bank of
Pittsburgh (FHLB), brokered
deposit capacity and unencumbered securities that may be pledged as
collateral. The Company's cash and cash equivalents balance and
available liquidity represent 48.5% of total assets and 55.1% of
total deposits.
- At September 30, 2023, total
estimated insured deposits, were approximately $2.4 billion, or 71.6% of total deposits; as
compared to approximately $1.9
billion, or 63.1% of total deposits at December 31, 2022. Included in the uninsured
total at September 30, 2023 is
$475.7 million of municipal deposits
collateralized by letters of credit issued by the FHLB and pledged
investment securities, and $0.2
million of affiliate company deposits. Total insured and
collateralized deposits represent 85.7% and 77.9% of total deposits
at September 30, 2023 and
December 31, 2022, respectively.
- 89,558 shares were repurchased during the three months ended
September 30, 2023 at an average
price per share of $43.95 and retired
under the Company's common stock repurchase plan, which was
terminated during the quarter.
- Tangible book value increased 5.3% to $37.07 at September 30,
2023 from $35.19 at
December 31, 2022.
- Asset quality remained strong as nonperforming assets as a
percentage of total assets at September 30,
2023 was 0.10%, compared to 0.12% and 0.12% at December 31, 2022 and September 30, 2022.
INCOME STATEMENT REVIEW
- Calculated on a fully taxable equivalent basis, a non-GAAP
measure1, our net interest margin for the three months
ended September 30, 2023 was 2.44%, a
decrease of 17 basis points when compared to the 2.61% for the
three months ended June 30, 2023 and
64 basis points when compared to 3.08% for the same three month
period in 2022. The decrease in net interest margin from the prior
three month period and year ago period was due to higher funding
costs offsetting the increased yield and balance of earning
assets.
- The tax-equivalent yield on interest-earning assets increased 9
basis points to 4.40% during the three months ended September 30, 2023 from 4.31% during the three
months ended June 30, 2023, and
increased 81 basis points when compared to 3.59% for the three
months ended September 30, 2022.
- Our cost of funds, which represents our average rate paid on
total interest-bearing liabilities, increased 32 basis points to
2.61% for the three months ended September
30, 2023 when compared to 2.29% during the three months
ended June 30, 2023 and increased 189
basis points compared to 0.72% in the prior year period. We
continued to increase interest rates paid on deposits during the
quarter to attract new deposits, retain current balances and
maintain liquidity.
- Our cost of interest-bearing deposits increased 32 basis points
during the current three month period to 2.53% from 2.21% in the
prior three month period ended June 30,
2023, and increased 194 basis points compared to 0.59% for
the three months ended September 30,
2022.
- Our cost of total deposits for the three months ended
September 30, 2023 increased 28 basis
points to 2.00% from 1.72% during the three months ended
June 30, 2023, and increased 156
basis points compared to 0.44% for the three months ended
September 30, 2022.
Third Quarter 2023 Results – Comparison to Prior-Year
Quarter
Tax-equivalent net interest income, a non-GAAP
measure1, for the three months ended September 30, decreased $3.7 million or 14.5% to $21.8 million in 2023 from $25.5 million in 2022. The decrease in tax
equivalent net interest income was due to higher tax-equivalent
interest income of $9.5 million less
elevated interest expense of $13.2
million.
The higher interest income was the result of an increase in
yield and average balance of earning assets. Average earning
assets were $255.6 million higher in
the three month period ended September 30,
2023 when compared to the year ago period. The
tax-equivalent yield on the loan portfolio was 4.85% and 4.09% for
the three months ended September 30,
2023 and 2022, respectively. This increase was due to
the higher rates on adjustable and floating rate loans, and new
loan originations. Loans, net, averaged $2.9 billion for the three months ended
September 30, 2023 and $2.6 billion for the comparable period in 2022.
For the three months ended September
30, the tax-equivalent yield on total investments increased
to 1.75% in 2023 from 1.67% in 2022. Average investments totaled
$542.5 million in the three months
ended September 30, 2023 and
$656.4 million in the three months
ended September 30, 2022.
The increased interest expense in the three months ended
September 30, 2023 was due primarily
to higher rates on consumer, business and municipal deposits driven
by the higher interest rate environment. The Company's total
cost of deposits increased during the three months ended
September 30, 2023 compared to the
year ago period by 156 basis points to 2.00%, and the cost of
interest-bearing deposits increased 194 basis points to 2.53% from
0.59% in the previous year three month period. Short-term
borrowings averaged $21.8 million in
the current period and added $0.3
million of interest expense at an average cost of 5.31%
compared to $78.9 million in
short-term borrowings and interest expense of $0.5 million in the year ago period at an average
cost of 2.30%.
Average interest-bearing liabilities increased $319.3 million for the three months ended
September 30, 2023, compared to the
corresponding period last year due primarily to an increase in
non-maturity and brokered certificate of deposits. Average
noninterest-bearing deposits decreased $82.5
million or 10.7% from the prior period and represented 21.0%
of total average deposits in the period, due in part to a shift to
interest-bearing accounts.
For the three months ended September 30,
2023, a credit of $0.2 million
was recorded to the provision for credit losses compared to a
provision of $0.5 million in the year
ago period. The current period provision credit was due to
the impact of various factors such as updated economic assumptions
as well as changes in qualitative adjustments, portfolio
composition and asset quality. Changes to qualitative factors
related to lower loan growth. The year ago period included a
provision for credit losses of $0.5
million based on our previous allowance for credit losses
methodology and then current conditions.
Noninterest income for the three months ended September 30, 2023 was $3.7 million, a $0.4
million increase from the prior year's quarter. Higher
retail and commercial account service charges and swap related
revenue, was partially offset by lower mortgage banking fees.
Noninterest expense increased $1.1
million or 7.0% to $17.1
million for the three months ended September 30, 2023, from $15.9 million for the three months ended
September 30, 2022. Acquisition
related expenses, including legal and consulting and advisory fees,
totaled $0.9 million. Salaries and
employee benefits increased $0.3
million or 3.7% due to annual merit increases; new hires;
lower deferred loan origination costs; and higher employee benefit
costs. Occupancy and equipment expenses were higher by
$0.3 million in the current period
due to the increase in information technology expenses and higher
facilities maintenance costs. Other expenses decreased
$0.2 million due primarily to lower
Pennsylvania shares taxes,
partially offset by higher FDIC assessments and loan account
processing fees.
The provision for income tax expense was $1.3 million for the three months ended
September 30, 2023 and $2.0 million for the three months ended
September 30, 2022, a decrease of
$0.7 million due to lower taxable
income.
Nine-Month Results – Comparison to Prior Year First Nine
Months
Our net interest margin, a non-GAAP measure1, for the
nine months ended September 30, 2023
was 2.62%, a decrease of 42 basis points over the prior year's
period of 3.04%. Tax-equivalent net interest income, a
non-GAAP measure1, for the nine months ended
September 30 decreased $4.8 million, or 6.6%, to $67.9 million in 2023 from $72.7 million in 2022. The decrease in net
interest income was the result of higher loan interest income due
to increased volume and rates on new loans and those that are
repricing, offset by the higher cost of deposit funding. In
addition, the 2023 period included $0.2
million in Small Business Administration Paycheck Protection
Program (PPP) interest and fees, compared to the $1.7 million in the year ago period. Investments
decreased $85.0 million compared to
September 30, 2022, as the Company
engaged in investment sales during the first three months of 2023
to, in part, fund loan growth and repay short-term
borrowings. The yield on earning assets was 4.29% for the
first nine months of 2023 compared to 3.39% for the nine month
period ended September 30,
2022. The cost of interest bearing liabilities during the
nine month period ended September 30,
2023 increased 177 basis points to 2.26% from 0.49% for the
nine months ended September 30, 2022
as the cost of all deposit products and short-term borrowing costs
increased. Furthermore, the Company, as part of its strategy
to improve on-balance sheet liquidity, added $259.0 million of brokered certificate of
deposits at an average cost of 5.16% during the first nine months
of 2023.
For the nine months ended September 30,
2023, a credit to the provision for credit losses of
$1.1 million was recorded due to
various factors including updated economic assumptions as well as
changes in qualitative factors, portfolio composition and improved
asset quality.
Noninterest income was $10.9
million for the nine months ended September 30, 2023 and $10.6 million for the comparable period ended
September 30, 2022. During the
period, service charges, fees and commissions increased
$0.6 million, due in part to a
$0.4 million increase in consumer and
commercial deposit service charges and increased dividends on FHLB
stock. Merchant services income decreased $0.3 million during the nine months ended
September 30, 2023 compared to the
prior year on lower transaction volume incentives. Interest
rate swap revenue decreased $0.2
million on lower origination volume and market value
adjustments.
Noninterest expense for the nine months ended September 30, 2023, was $50.2 million, an increase of $4.5 million from $45.7
million for the nine months ended September 30, 2022. The increase was due
primarily to $2.0 million in higher
salaries and benefits expense due to annual merit increases,
expansion market investments and lower deferred loan origination
costs, which are recorded as a contra-salary expense, of
$0.7 million due to lower loan
origination volume compared to the year ago period. Occupancy
and equipment expenses were higher by $0.6
million in the current period due to higher technology costs
related to increased account and transaction volumes and increased
facility expenses. The year ago period included $0.5 million of gains from the sale of other real
estate owned, which is included in noninterest expense.
Acquisition related expenses totaled $1.0 million. Other expenses including
professional fees, loan account processing fees, Pennsylvania shares tax and FDIC assessments
accounted for an increase of $0.7
million.
The provision for income taxes for the nine months ended
September 30, 2023 decreased
$1.1 million and the effective tax
rate was 16.0% as compared to 16.2% in the prior period.
BALANCE SHEET REVIEW
At September 30, 2023, total
assets, loans and deposits were $3.8
billion, $2.9 billion and
$3.4 billion, respectively. During
the nine month period, investment sales, deposit growth and FHLB
term borrowings were utilized to fund loan growth and repay
short-term borrowings.
Loan growth for nine months ended September 30, 2023 was $140.9 million or 6.9% annualized. Growth
slowed during the three months ended September 30, 2023 and June 30, 2023, totaling $27.7 million and $25.2
million, respectively, when compared to loan growth of
$88.0 million during the first three
months of 2023. The Company has intentionally slowed loan
growth and has focused on building liquidity due to economic
uncertainty. Commercial real estate loans made up the
majority of the growth with residential real estate loans also
increasing. At September 30,
2023, gross PPP loans remaining totaled $22.0 million and net deferred PPP fees remaining
totaled $0.2 million.
Total investments were $468.6
million at September 30, 2023,
compared to $569.0 million at
December 31, 2022. At
September 30, 2023, the
available-for-sale securities totaled $382.2
million and the held-to-maturity securities totaled
$86.2 million. The unrealized
losses on the held-to-maturity portfolio totaled $17.4 million and $14.6
million at September 30, 2023
and December 31, 2022,
respectively. During the three month period ended
March 31, 2023, $65.6 million in U.S. Treasury, tax-exempt
municipals and mortgage-backed securities were sold at a net gain
of $81 thousand. The proceeds
were used to pay-down higher cost short-term borrowings.
Total deposits increased $318.5
million during the nine months ending September 30, 2023. Noninterest-bearing
deposits decreased $81.7 million and
interest-bearing deposits increased $400.2
million during the nine months ended September 30, 2023. The increase in
deposits was due to a $248.0 million
net increase in brokered deposits, $135.3
million in commercial deposits and a $53.7 million increase in municipal deposits,
partially offset by $118.4 million in
reduced retail deposits. The Company added $259.0 million of longer-term callable brokered
CDs during the first six months of 2023 to improve its on-balance
sheet liquidity position and mitigate risk of higher rates.
The Company has the option to call the CDs after an initial three
or six month period.
The deposit base consisted of 41.0% retail accounts, 32.8%
commercial accounts, 18.1% municipal relationships and 8.1%
brokered deposits at September 30,
2023. At September 30, 2023,
total estimated uninsured deposits, were $955.9 million, or approximately 28.4% of total
deposits as compared to $1.1 billion,
or 36.9% of total deposits at December
31, 2022. Included in the uninsured total at
September 30, 2023 is $475.7 million of municipal deposits
collateralized by letters of credit issued by the FHLB and pledged
investment securities, and $0.2
million of affiliate company deposits. As an
additional resource to our uninsured depositors, we offer all
depositors access to IntraFi's CDARS and ICS programs which allows
deposit customers to obtain full FDIC deposit insurance while
maintaining their relationship with our Bank.
During the nine months ended September
30, 2023, the Company utilized a portion of its available
line at the FHLB and increased its long-term debt $25.0 million due to favorable pricing on the
borrowings versus alternative funding sources.
In addition to deposit gathering and our current long term
borrowings, we have additional sources of liquidity available such
as cash and cash equivalents, overnight borrowings from the FHLB,
the Federal Reserve's Discount Window and Borrower-in-Custody
program, correspondent bank lines of credit, brokered deposit
capacity and unencumbered securities. At September 30, 2023, the Company had $254.5 million in cash and cash equivalents, an
increase of $216.7 million from
December 31, 2022. Although we
do not plan to access the Federal Reserve's Bank Term Funding
Program (BTFP), we have $4.0 million
in collateral availability and an additional $371.4 million of borrowing capacity based on the
par value of unencumbered securities available as collateral under
this line. At September 30,
2023, we had $1.6 billion in
available additional liquidity representing 41.8% of total assets,
47.5% of total deposits and 167.3% of uninsured deposits. For
additional information on our deposit portfolio and additional
sources of liquidity, see the tables on page 16.
The Company maintained its well capitalized position at
September 30, 2023.
Stockholders' equity equaled $324.4
million or $46.07 per share at
September 30, 2023, and $315.4 million or $44.06 per share at December 31, 2022. The increase in stockholders'
equity from December 31, 2022 is
primarily attributable to net income offset in part by an increase
to accumulated other comprehensive loss ("AOCI") resulting from an
increase in the unrealized loss on available for sale
securities. The net after tax unrealized loss on available
for sale securities included in AOCI at September 30, 2023 and December 31, 2022 was $55.7 million and $52.0
million, respectively.
Tangible stockholders' equity, a non-GAAP measure1,
increased to $37.07 per share at
September 30, 2023, from $35.19 per share at December 31, 2022. Dividends declared for
the nine months ended September 30,
2023 amounted to $1.23 per
share, a 4.2% increase from the 2022 period, representing a
dividend payout ratio of 37.2% of net income. During the nine
months ended September 30, 2023,
131,686 shares were purchased and retired under the Company's
common stock repurchase plan at an average price per share of
$44.29.
ASSET QUALITY REVIEW
Asset quality metrics remained strong and continued to
improve. Nonperforming assets were $3.8 million or 0.13% of loans, net and
foreclosed assets at September 30,
2023, compared to $4.1 million
or 0.15% of loans, net and foreclosed assets at December 31, 2022. As a percentage of total
assets, nonperforming assets improved to 0.10% at September 30, 2023 compared to 0.12% at
December 31, 2022. The decrease
in nonperforming assets was due to the reclassification of accruing
troubled debt restructurings due to the January 1, 2023 change in accounting guidance
noted below, reduced levels of loans 90 days or more past due and
still accruing and collection activities. At
September 30, 2023, the Company had
no foreclosed properties.
Effective January 1, 2023, the
Company transitioned to ASU 2016-13 Financial Instruments – Credit
Losses (Topic 326), commonly referred to as Current Expected Credit
Losses (CECL). As a result of the transition to CECL, the
allowance for credit losses was reduced $3.3
million to $24.2 million
effective January 1, 2023 and the
reserve for unfunded commitments was increased $270 thousand to $450
thousand. The cumulative adjustment, net of tax, was
recorded as an adjustment to retained earnings effective
January 1, 2023.
During the nine month period ended September 30, 2023, a $1.1
million credit to loan losses and net charge-offs of
$76 thousand were recorded. The
allowance for credit losses equaled $23.0
million or 0.80% of loans, net at September 30, 2023 compared to $27.5 million or 1.01% of loans, net, at
December 31, 2022. Loans charged-off, net of
recoveries, for the nine months ended September 30, 2023 were minimal at $76 thousand, compared to $261 thousand or 0.02% 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.
In addition to evaluating its results of operations in
accordance with U.S. generally accepted accounting principles
("GAAP"), Peoples routinely supplements its evaluation with an
analysis of certain non-GAAP financial measures, such as tangible
stockholders' equity and core net income ratios. The reported
results included in this release contain items, which Peoples
considers non-core, namely acquisition related expenses and gain or
loss on the sale of securities available for sale. 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.
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 impact on
financial markets from geopolitical conflicts such as the military
conflict between Russia and
Ukraine and the developing
conflict in Israel; credit risk
associated with our lending activities; changes in interest rates,
loan demand, deposit flows, real estate values and competition;
changes in customer behaviors, including consumer spending,
borrowing and savings habits; changes in accounting
principles, policies, and guidelines including our adoption of
Current Expected Credit Losses (CECL) methodology, and any
potential volatility in the Company's operating results due to
application of the CECL methodology; 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; adverse developments in the financial industry generally,
such as recent bank failures, responsive measures to mitigate and
manage such developments, related supervisory and regulatory
actions and costs, and related impacts on customer and client
behavior 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
and, specifically, the pending strategic combination involving the
merger of FNCB with and into Peoples (the "Merger") 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.
Additional Information regarding the Merger
and Where to Find It
In connection with the proposed Merger, Peoples will file a
registration statement on Form S-4 with the SEC. The
registration statement will include a joint proxy statement of
Peoples and FNCB, which also constitutes a prospectus of Peoples,
that will be sent to shareholders of Peoples and shareholders of
FNCB seeking certain approvals related to the proposed
transaction.
The information contained in this release does not constitute an
offer to sell or a solicitation of an offer to buy any securities
or a solicitation of any vote or approval, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any
such jurisdiction. INVESTORS AND
SHAREHOLDERS OF PEOPLES AND FNCB AND THEIR
RESPECTIVE AFFILIATES ARE URGED TO
READ, WHEN AVAILABLE, THE REGISTRATION STATEMENT ON FORM S-4,
THE JOINT PROXY STATEMENT/PROSPECTUS TO BE INCLUDED WITHIN THE
REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS
FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED
TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE
DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
PEOPLES, FNCB AND THE PROPOSED TRANSACTION.
Investors and shareholders will be able to obtain a free copy of
the registration statement, including the joint proxy
statement/prospectus as well as other relevant documents filed with
the SEC containing information about Peoples and FNCB without
charge, at the SEC s website www.sec.gov. Copies of documents
filed with the SEC by Peoples will be made available free of charge
in the "Investor Relations" section of Peoples' website,
www.psbt.com under the heading "SEC Filings." Copies of documents
filed with the SEC by FNCB will be made available free of charge in
the "About FNCB" section of FNCB's website,www.fncb.com.
______________________
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1 See
reconciliation of non-GAAP financial measures on
pp.18-20
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[TABULAR MATERIAL FOLLOWS]
Summary
Data
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Peoples Financial
Services Corp.
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Five Quarter Trend
(Unaudited)
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(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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2023
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2023
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2023
|
|
2022
|
|
2022
|
|
Key performance
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.95
|
|
$
|
1.31
|
|
$
|
1.05
|
|
$
|
1.27
|
|
$
|
1.38
|
|
Core net income
(1)
|
|
$
|
1.05
|
|
$
|
1.31
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
Cash dividends
declared
|
|
$
|
0.41
|
|
$
|
0.41
|
|
$
|
0.41
|
|
$
|
0.40
|
|
$
|
0.40
|
|
Book value
|
|
$
|
46.07
|
|
$
|
46.53
|
|
$
|
45.96
|
|
$
|
44.06
|
|
$
|
42.14
|
|
Tangible book value
(1)
|
|
$
|
37.07
|
|
$
|
37.64
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
Market
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
48.19
|
|
$
|
44.60
|
|
$
|
53.48
|
|
$
|
57.60
|
|
$
|
56.09
|
|
Low
|
|
$
|
40.04
|
|
$
|
30.60
|
|
$
|
42.52
|
|
$
|
47.00
|
|
$
|
46.84
|
|
Closing
|
|
$
|
40.10
|
|
$
|
43.79
|
|
$
|
43.35
|
|
$
|
51.84
|
|
$
|
46.84
|
|
Market
capitalization
|
|
$
|
282,338
|
|
$
|
312,241
|
|
$
|
309,985
|
|
$
|
371,072
|
|
$
|
335,503
|
|
Common shares
outstanding
|
|
|
7,040,852
|
|
|
7,130,409
|
|
|
7,150,757
|
|
|
7,158,017
|
|
|
7,162,750
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
|
|
8.05
|
%
|
|
11.42
|
%
|
|
9.43
|
%
|
|
11.79
|
%
|
|
12.69
|
%
|
Core return on average
stockholders' equity (1)
|
|
|
8.91
|
%
|
|
11.54
|
%
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
Return on average
tangible stockholders' equity
|
|
|
9.95
|
%
|
|
14.12
|
%
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
Core return on average
tangible stockholders' equity (1)
|
|
|
11.01
|
%
|
|
14.28
|
%
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
Return on average
assets
|
|
|
0.72
|
%
|
|
1.04
|
%
|
|
0.86
|
%
|
|
1.04
|
%
|
|
1.14
|
%
|
Core return on average
assets (1)
|
|
|
0.79
|
%
|
|
1.05
|
%
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
Stockholders' equity to
total assets
|
|
|
8.48
|
%
|
|
9.01
|
%
|
|
8.93
|
%
|
|
8.87
|
%
|
|
8.58
|
%
|
Efficiency ratio
(1)(2)
|
|
|
63.50
|
%
|
|
63.51
|
%
|
|
60.61
|
%
|
|
60.07
|
%
|
|
54.95
|
%
|
Nonperforming assets to
loans, net, and foreclosed assets
|
|
|
0.13
|
%
|
|
0.07
|
%
|
|
0.07
|
%
|
|
0.15
|
%
|
|
0.16
|
%
|
Nonperforming assets to
total assets
|
|
|
0.10
|
%
|
|
0.06
|
%
|
|
0.05
|
%
|
|
0.12
|
%
|
|
0.12
|
%
|
Net charge-offs to
average loans, net
|
|
|
0.01
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.03
|
%
|
|
0.00
|
%
|
Allowance for credit
losses to loans, net
|
|
|
0.80
|
%
|
|
0.82
|
%
|
|
0.90
|
%
|
|
1.01
|
%
|
|
1.14
|
%
|
Interest-bearing assets
yield (FTE) (3)
|
|
|
4.40
|
%
|
|
4.31
|
%
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
Cost of
funds
|
|
|
2.61
|
%
|
|
2.29
|
%
|
|
1.84
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
Net interest spread
(FTE) (3)
|
|
|
1.79
|
%
|
|
2.02
|
%
|
|
2.32
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
Net interest margin
(FTE) (3)
|
|
|
2.44
|
%
|
|
2.61
|
%
|
|
2.82
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
|
|
(1)
|
See Reconciliation of
Non-GAAP financial measures on pages 18-20.
|
(2)
|
Total noninterest
expense less amortization of intangible assets and acquisition
related expenses, divided by tax-equivalent net interest income and
noninterest income less net gains (losses) on investment securities
available for sale.
|
(3)
|
Tax-equivalent
adjustments were calculated using the federal statutory tax rate
prevailing during the indicated periods of 21%.
|
Peoples Financial
Services Corp.
|
Consolidated
Statements of Income (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
Sept 30
|
|
Sept 30
|
|
Nine months
ended
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
95,283
|
|
$
|
67,990
|
|
Tax-exempt
|
|
|
4,205
|
|
|
3,717
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
5,973
|
|
|
6,176
|
|
Tax-exempt
|
|
|
1,210
|
|
|
1,546
|
|
Dividends
|
|
|
4
|
|
|
2
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
190
|
|
|
61
|
|
Interest on federal
funds sold
|
|
|
2,914
|
|
|
201
|
|
Total interest
income
|
|
|
109,779
|
|
|
79,693
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
39,805
|
|
|
6,381
|
|
Interest on short-term
borrowings
|
|
|
1,590
|
|
|
579
|
|
Interest on long-term
debt
|
|
|
569
|
|
|
67
|
|
Interest on
subordinated debt
|
|
|
1,330
|
|
|
1,330
|
|
Total interest
expense
|
|
|
43,294
|
|
|
8,357
|
|
Net interest
income
|
|
|
66,485
|
|
|
71,336
|
|
(Credit to) provision
for credit losses
|
|
|
(1,103)
|
|
|
1,700
|
|
Net interest income
after (credit to) provision for credit losses
|
|
|
67,588
|
|
|
69,636
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
5,847
|
|
|
5,167
|
|
Merchant services
income
|
|
|
542
|
|
|
833
|
|
Commissions and fees on
fiduciary activities
|
|
|
1,691
|
|
|
1,697
|
|
Wealth management
income
|
|
|
1,177
|
|
|
1,064
|
|
Mortgage banking
income
|
|
|
295
|
|
|
407
|
|
Increase in cash
surrender value of life insurance
|
|
|
790
|
|
|
731
|
|
Interest rate swap
revenue
|
|
|
512
|
|
|
757
|
|
Net (losses) on equity
investment securities
|
|
|
(17)
|
|
|
(37)
|
|
Net gains on sale of
investment securities available for sale
|
|
|
81
|
|
|
|
|
Total noninterest
income
|
|
|
10,918
|
|
|
10,619
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
26,346
|
|
|
24,365
|
|
Net occupancy and
equipment expense
|
|
|
12,678
|
|
|
12,061
|
|
Acquisition related
expenses
|
|
|
990
|
|
|
|
|
Amortization of
intangible assets
|
|
|
86
|
|
|
289
|
|
Net gains on sale of
other real estate owned
|
|
|
(18)
|
|
|
(478)
|
|
Other
expenses
|
|
|
10,140
|
|
|
9,480
|
|
Total noninterest
expense
|
|
|
50,222
|
|
|
45,717
|
|
Income before income
taxes
|
|
|
28,284
|
|
|
34,538
|
|
Provision for income
tax expense
|
|
|
4,534
|
|
|
5,587
|
|
Net income
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
Unrealized losses on
investment securities available for sale
|
|
$
|
(4,690)
|
|
$
|
(72,791)
|
|
Reclassification
adjustment for (gains) on available for sale securities included in
net income
|
|
|
(81)
|
|
|
|
|
Change in derivative
fair value
|
|
|
826
|
|
|
(740)
|
|
Income tax benefit
related to other comprehensive (loss)
|
|
|
(851)
|
|
|
(15,442)
|
|
Other comprehensive
loss, net of income tax benefit
|
|
|
(3,094)
|
|
|
(58,089)
|
|
Comprehensive income
(loss)
|
|
$
|
20,656
|
|
$
|
(29,138)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
3.33
|
|
$
|
4.04
|
|
Net income -
diluted
|
|
|
3.31
|
|
|
4.01
|
|
Cash dividends
declared
|
|
|
1.23
|
|
|
1.18
|
|
Average common shares
outstanding - basic
|
|
|
7,130,506
|
|
|
7,171,382
|
|
Average common shares
outstanding - diluted
|
|
|
7,165,570
|
|
|
7,214,966
|
|
Peoples Financial
Services Corp.
|
Consolidated
Statements of Income (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
33,095
|
|
$
|
32,139
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
Tax-exempt
|
|
|
1,411
|
|
|
1,405
|
|
|
1,389
|
|
|
1,367
|
|
|
1,338
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,920
|
|
|
1,929
|
|
|
2,124
|
|
|
2,058
|
|
|
2,096
|
|
Tax-exempt
|
|
|
375
|
|
|
378
|
|
|
457
|
|
|
520
|
|
|
521
|
|
Dividends
|
|
|
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
91
|
|
|
85
|
|
|
14
|
|
|
40
|
|
|
41
|
|
Interest on federal
funds sold
|
|
|
1,873
|
|
|
798
|
|
|
243
|
|
|
141
|
|
|
106
|
|
Total interest
income
|
|
|
38,765
|
|
|
36,736
|
|
|
34,278
|
|
|
31,641
|
|
|
29,230
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
16,481
|
|
|
13,714
|
|
|
9,610
|
|
|
6,251
|
|
|
3,316
|
|
Interest on short-term
borrowings
|
|
|
291
|
|
|
213
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
Interest on long-term
debt
|
|
|
273
|
|
|
269
|
|
|
27
|
|
|
9
|
|
|
16
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
Total interest
expense
|
|
|
17,488
|
|
|
14,640
|
|
|
11,166
|
|
|
7,228
|
|
|
4,232
|
|
Net interest
income
|
|
|
21,277
|
|
|
22,096
|
|
|
23,112
|
|
|
24,413
|
|
|
24,998
|
|
(Credit to) provision
for credit losses
|
|
|
(166)
|
|
|
(2,201)
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
Net interest income
after (credit to) provision for credit losses
|
|
|
21,443
|
|
|
24,297
|
|
|
21,848
|
|
|
26,562
|
|
|
24,548
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
1,900
|
|
|
1,982
|
|
|
1,965
|
|
|
1,909
|
|
|
1,714
|
|
Merchant services
income
|
|
|
170
|
|
|
254
|
|
|
118
|
|
|
131
|
|
|
157
|
|
Commissions and fees on
fiduciary activities
|
|
|
606
|
|
|
528
|
|
|
557
|
|
|
532
|
|
|
591
|
|
Wealth management
income
|
|
|
393
|
|
|
386
|
|
|
398
|
|
|
366
|
|
|
339
|
|
Mortgage banking
income
|
|
|
87
|
|
|
105
|
|
|
103
|
|
|
104
|
|
|
135
|
|
Increase in cash
surrender value of life insurance
|
|
|
270
|
|
|
262
|
|
|
258
|
|
|
289
|
|
|
269
|
|
Interest rate swap
revenue
|
|
|
266
|
|
|
23
|
|
|
223
|
|
|
(135)
|
|
|
130
|
|
Net gains (losses) on
investment equity securities
|
|
|
|
|
|
12
|
|
|
(29)
|
|
|
6
|
|
|
(18)
|
|
Net gains (losses) on
sale of investment securities available for sale
|
|
|
|
|
|
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
Total noninterest
income
|
|
|
3,692
|
|
|
3,552
|
|
|
3,674
|
|
|
1,226
|
|
|
3,317
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
8,784
|
|
|
8,482
|
|
|
9,080
|
|
|
9,188
|
|
|
8,474
|
|
Net occupancy and
equipment expense
|
|
|
4,298
|
|
|
4,277
|
|
|
4,103
|
|
|
5,045
|
|
|
4,025
|
|
Acquisition related
expenses
|
|
|
869
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
|
29
|
|
|
28
|
|
|
29
|
|
|
74
|
|
|
96
|
|
Net gains on sale of
other real estate
|
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expenses
|
|
|
3,092
|
|
|
3,706
|
|
|
3,342
|
|
|
2,653
|
|
|
3,340
|
|
Total noninterest
expense
|
|
|
17,054
|
|
|
16,614
|
|
|
16,554
|
|
|
16,960
|
|
|
15,935
|
|
Income before income
taxes
|
|
|
8,081
|
|
|
11,235
|
|
|
8,968
|
|
|
10,828
|
|
|
11,930
|
|
Income tax
expense
|
|
|
1,335
|
|
|
1,810
|
|
|
1,389
|
|
|
1,689
|
|
|
1,962
|
|
Net income
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain
on investment securities available for sale
|
|
$
|
(10,378)
|
|
$
|
(5,148)
|
|
$
|
10,836
|
|
$
|
6,356
|
|
$
|
(21,510)
|
|
Reclassification
adjustment for (gains) losses on available for sale securities
included in net income
|
|
|
|
|
|
|
|
|
(81)
|
|
|
1,976
|
|
|
|
|
Change in benefit plan
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
370
|
|
|
|
|
Change in derivative
fair value
|
|
|
747
|
|
|
2,049
|
|
|
(1,970)
|
|
|
12
|
|
|
(46)
|
|
Income tax (benefit)
expense related to other comprehensive (loss)
income
|
|
|
(2,074)
|
|
|
(668)
|
|
|
1,891
|
|
|
1,447
|
|
|
(4,527)
|
|
Other comprehensive
(loss) income, net of income tax (benefit) expense
|
|
|
(7,557)
|
|
|
(2,431)
|
|
|
6,894
|
|
|
7,267
|
|
|
(17,029)
|
|
Comprehensive (loss)
income
|
|
$
|
(811)
|
|
$
|
6,994
|
|
$
|
14,473
|
|
$
|
16,406
|
|
$
|
(7,061)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
0.95
|
|
$
|
1.32
|
|
$
|
1.06
|
|
$
|
1.28
|
|
$
|
1.39
|
|
Net income -
diluted
|
|
|
0.95
|
|
|
1.31
|
|
|
1.05
|
|
|
1.27
|
|
|
1.38
|
|
Cash dividends
declared
|
|
|
0.41
|
|
|
0.41
|
|
|
0.41
|
|
|
0.40
|
|
|
0.40
|
|
Average common shares
outstanding - basic
|
|
|
7,088,745
|
|
|
7,145,975
|
|
|
7,157,553
|
|
|
7,158,329
|
|
|
7,169,809
|
|
Average common shares
outstanding - diluted
|
|
|
7,120,685
|
|
|
7,177,915
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
Peoples Financial
Services Corp.
|
Net Interest Margin
(Unaudited)
|
(In thousands, fully
taxable equivalent basis)
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2023
|
|
|
September 30,
2022
|
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,627,700
|
|
$
|
33,095
|
|
5.00
|
%
|
|
$
|
2,377,803
|
|
$
|
25,128
|
|
4.19
|
%
|
Tax-exempt
|
|
|
226,628
|
|
|
1,786
|
|
3.13
|
|
|
|
225,637
|
|
|
1,694
|
|
2.98
|
|
Total loans
|
|
|
2,854,328
|
|
|
34,881
|
|
4.85
|
|
|
|
2,603,440
|
|
|
26,822
|
|
4.09
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
454,727
|
|
|
1,920
|
|
1.68
|
|
|
|
544,782
|
|
|
2,096
|
|
1.53
|
|
Tax-exempt
|
|
|
87,731
|
|
|
475
|
|
2.15
|
|
|
|
111,578
|
|
|
659
|
|
2.34
|
|
Total
investments
|
|
|
542,458
|
|
|
2,395
|
|
1.75
|
|
|
|
656,360
|
|
|
2,755
|
|
1.67
|
|
Interest-bearing
deposits
|
|
|
6,893
|
|
|
91
|
|
5.24
|
|
|
|
9,180
|
|
|
41
|
|
1.77
|
|
Federal funds
sold
|
|
|
134,583
|
|
|
1,873
|
|
5.52
|
|
|
|
13,665
|
|
|
106
|
|
3.08
|
|
Total earning
assets
|
|
|
3,538,262
|
|
|
39,240
|
|
4.40
|
%
|
|
|
3,282,645
|
|
|
29,724
|
|
3.59
|
%
|
Less: allowance for
credit losses
|
|
|
23,691
|
|
|
|
|
|
|
|
|
29,863
|
|
|
|
|
|
|
Other assets
|
|
|
215,472
|
|
|
|
|
|
|
|
|
210,724
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,730,043
|
|
$
|
39,240
|
|
|
|
|
$
|
3,463,506
|
|
$
|
29,724
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
697,387
|
|
$
|
5,945
|
|
3.38
|
%
|
|
$
|
630,165
|
|
$
|
1,228
|
|
0.77
|
%
|
Interest-bearing demand
and NOW accounts
|
|
|
800,978
|
|
|
4,335
|
|
2.15
|
|
|
|
770,582
|
|
|
1,184
|
|
0.61
|
|
Savings
accounts
|
|
|
462,468
|
|
|
272
|
|
0.23
|
|
|
|
527,244
|
|
|
123
|
|
0.09
|
|
Time deposits less than
$100
|
|
|
412,705
|
|
|
4,234
|
|
4.07
|
|
|
|
132,599
|
|
|
358
|
|
1.07
|
|
Time deposits $100 or
more
|
|
|
208,153
|
|
|
1,695
|
|
3.23
|
|
|
|
168,239
|
|
|
423
|
|
1.00
|
|
Total interest-bearing
deposits
|
|
|
2,581,691
|
|
|
16,481
|
|
2.53
|
|
|
|
2,228,829
|
|
|
3,316
|
|
0.59
|
|
Short-term
borrowings
|
|
|
21,759
|
|
|
291
|
|
5.31
|
|
|
|
78,922
|
|
|
457
|
|
2.30
|
|
Long-term
debt
|
|
|
25,000
|
|
|
273
|
|
4.33
|
|
|
|
1,369
|
|
|
16
|
|
4.64
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
443
|
|
5.33
|
|
|
|
33,000
|
|
|
443
|
|
5.33
|
|
Total
borrowings
|
|
|
79,759
|
|
|
1,007
|
|
5.01
|
|
|
|
113,291
|
|
|
916
|
|
3.21
|
|
Total interest-bearing
liabilities
|
|
|
2,661,450
|
|
|
17,488
|
|
2.61
|
|
|
|
2,342,120
|
|
|
4,232
|
|
0.72
|
|
Noninterest-bearing
deposits
|
|
|
688,301
|
|
|
|
|
|
|
|
|
770,833
|
|
|
|
|
|
|
Other
liabilities
|
|
|
47,788
|
|
|
|
|
|
|
|
|
38,840
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
332,504
|
|
|
|
|
|
|
|
|
311,713
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,730,043
|
|
|
|
|
|
|
|
$
|
3,463,506
|
|
|
|
|
|
|
Net interest
income/spread
|
|
|
|
|
$
|
21,752
|
|
1.79
|
%
|
|
|
|
|
$
|
25,492
|
|
2.87
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
2.44
|
%
|
|
|
|
|
|
|
|
3.08
|
%
|
Tax-equivalent
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
375
|
|
|
|
|
|
|
|
$
|
356
|
|
|
|
Investments
|
|
|
|
|
|
100
|
|
|
|
|
|
|
|
|
138
|
|
|
|
Total
adjustments
|
|
|
|
|
$
|
475
|
|
|
|
|
|
|
|
$
|
494
|
|
|
|
|
The average balances of
assets and liabilities, corresponding interest income and expense
and resulting average yields or rates paid are summarized as
follows. Averages for earning assets include nonaccrual loans.
Investment averages include available for sale securities at
amortized cost. Income on investment securities and loans is
adjusted to a tax equivalent basis using the prevailing federal
statutory tax rate of 21%.
|
Peoples Financial
Services Corp.
|
Net Interest Margin
(Unaudited)
|
(In thousands, fully
taxable equivalent basis)
|
|
|
|
For the Nine Months
Ended
|
|
|
|
September 30,
2023
|
|
September 30,
2022
|
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,596,848
|
|
$
|
95,283
|
|
4.91
|
%
|
$
|
2,260,993
|
|
$
|
67,990
|
|
4.02
|
%
|
Tax-exempt
|
|
|
225,178
|
|
|
5,323
|
|
3.16
|
|
|
213,803
|
|
|
4,705
|
|
2.94
|
|
Total loans
|
|
|
2,822,026
|
|
|
100,606
|
|
4.77
|
|
|
2,474,796
|
|
|
72,695
|
|
3.93
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
474,425
|
|
|
5,977
|
|
1.68
|
|
|
540,512
|
|
|
6,178
|
|
1.53
|
|
Tax-exempt
|
|
|
92,111
|
|
|
1,532
|
|
2.22
|
|
|
111,041
|
|
|
1,957
|
|
2.36
|
|
Total
investments
|
|
|
566,536
|
|
|
7,509
|
|
1.77
|
|
|
651,553
|
|
|
8,135
|
|
1.67
|
|
Interest-bearing
deposits
|
|
|
5,004
|
|
|
190
|
|
5.08
|
|
|
9,846
|
|
|
61
|
|
0.83
|
|
Federal funds
sold
|
|
|
72,098
|
|
|
2,914
|
|
5.40
|
|
|
66,057
|
|
|
201
|
|
0.41
|
|
Total earning
assets
|
|
|
3,465,664
|
|
|
111,219
|
|
4.29
|
%
|
|
3,202,252
|
|
|
81,092
|
|
3.39
|
%
|
Less: allowance for
credit losses
|
|
|
24,711
|
|
|
|
|
|
|
|
29,144
|
|
|
|
|
|
|
Other assets
|
|
|
211,537
|
|
|
|
|
|
|
|
216,960
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,652,490
|
|
$
|
111,219
|
|
|
|
$
|
3,390,068
|
|
$
|
81,092
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
694,478
|
|
$
|
15,459
|
|
2.98
|
%
|
$
|
604,918
|
|
$
|
2,061
|
|
0.46
|
%
|
Interest bearing demand
and NOW accounts
|
|
|
768,277
|
|
|
10,661
|
|
1.86
|
|
|
790,852
|
|
|
2,248
|
|
0.38
|
|
Savings
accounts
|
|
|
485,985
|
|
|
727
|
|
0.20
|
|
|
517,381
|
|
|
316
|
|
0.08
|
|
Time deposits less than
$100
|
|
|
327,810
|
|
|
8,980
|
|
3.66
|
|
|
128,639
|
|
|
965
|
|
1.00
|
|
Time deposits $100 or
more
|
|
|
195,450
|
|
|
3,978
|
|
2.72
|
|
|
160,949
|
|
|
791
|
|
0.66
|
|
Total interest-bearing
deposits
|
|
|
2,472,000
|
|
|
39,805
|
|
2.15
|
|
|
2,202,739
|
|
|
6,381
|
|
0.39
|
|
Short-term
borrowings
|
|
|
43,125
|
|
|
1,590
|
|
4.93
|
|
|
40,401
|
|
|
579
|
|
1.92
|
|
Long-term
debt
|
|
|
17,576
|
|
|
569
|
|
4.33
|
|
|
1,911
|
|
|
67
|
|
4.69
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
1,330
|
|
5.39
|
|
|
33,000
|
|
|
1,330
|
|
5.39
|
|
Total
borrowings
|
|
|
93,701
|
|
|
3,489
|
|
4.98
|
|
|
75,312
|
|
|
1,976
|
|
3.51
|
|
Total interest-bearing
liabilities
|
|
|
2,565,701
|
|
|
43,294
|
|
2.26
|
|
|
2,278,051
|
|
|
8,357
|
|
0.49
|
|
Noninterest-bearing
deposits
|
|
|
714,779
|
|
|
|
|
|
|
|
751,549
|
|
|
|
|
|
|
Other
liabilities
|
|
|
42,101
|
|
|
|
|
|
|
|
35,947
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
329,909
|
|
|
|
|
|
|
|
324,521
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,652,490
|
|
|
|
|
|
|
$
|
3,390,068
|
|
|
|
|
|
|
Net interest
income/spread
|
|
|
|
|
$
|
67,925
|
|
2.03
|
%
|
|
|
|
$
|
72,735
|
|
2.90
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
2.62
|
%
|
|
|
|
|
|
|
3.04
|
%
|
Tax-equivalent
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
1,118
|
|
|
|
|
|
|
$
|
988
|
|
|
|
Investments
|
|
|
|
|
|
322
|
|
|
|
|
|
|
|
411
|
|
|
|
Total
adjustments
|
|
|
|
|
$
|
1,440
|
|
|
|
|
|
|
$
|
1,399
|
|
|
|
|
The average balances of
assets and liabilities, corresponding interest income and expense
and resulting average yields or rates paid are summarized as
follows. Averages for earning assets include nonaccrual loans.
Investment averages include available for sale securities at
amortized cost. Income on investment securities and loans is
adjusted to a tax equivalent basis using the prevailing federal
statutory tax rate of 21%.
|
Peoples Financial
Services Corp.
|
Details of Net
Interest Income and Net Interest Margin (Unaudited)
|
(In thousands, fully
taxable equivalent basis)
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
33,095
|
|
$
|
32,139
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
Tax-exempt
|
|
|
1,786
|
|
|
1,780
|
|
|
1,757
|
|
|
1,730
|
|
|
1,694
|
|
Total loans,
net
|
|
|
34,881
|
|
|
33,919
|
|
|
31,806
|
|
|
29,245
|
|
|
26,822
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,920
|
|
|
1,931
|
|
|
2,126
|
|
|
2,058
|
|
|
2,096
|
|
Tax-exempt
|
|
|
475
|
|
|
481
|
|
|
576
|
|
|
658
|
|
|
659
|
|
Total
investments
|
|
|
2,395
|
|
|
2,412
|
|
|
2,702
|
|
|
2,716
|
|
|
2,755
|
|
Interest on
interest-bearing balances in other banks
|
|
|
91
|
|
|
85
|
|
|
14
|
|
|
40
|
|
|
41
|
|
Federal funds
sold
|
|
|
1,873
|
|
|
798
|
|
|
243
|
|
|
141
|
|
|
106
|
|
Total interest
income
|
|
|
39,240
|
|
|
37,214
|
|
|
34,765
|
|
|
32,142
|
|
|
29,724
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
16,481
|
|
|
13,714
|
|
|
9,610
|
|
|
6,251
|
|
|
3,316
|
|
Short-term
borrowings
|
|
|
291
|
|
|
213
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
Long-term
debt
|
|
|
273
|
|
|
269
|
|
|
27
|
|
|
9
|
|
|
16
|
|
Subordinated
debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
Total interest
expense
|
|
|
17,488
|
|
|
14,640
|
|
|
11,166
|
|
|
7,228
|
|
|
4,232
|
|
Net interest
income
|
|
$
|
21,752
|
|
$
|
22,574
|
|
$
|
23,599
|
|
$
|
24,914
|
|
$
|
25,492
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
5.00
|
%
|
|
4.93
|
%
|
|
4.79
|
%
|
|
4.47
|
%
|
|
4.19
|
%
|
Tax-exempt
|
|
|
3.13
|
%
|
|
3.17
|
%
|
|
3.18
|
%
|
|
3.08
|
%
|
|
2.98
|
%
|
Total loans,
net
|
|
|
4.85
|
%
|
|
4.79
|
%
|
|
4.66
|
%
|
|
4.35
|
%
|
|
4.09
|
%
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1.68
|
%
|
|
1.65
|
%
|
|
1.73
|
%
|
|
1.54
|
%
|
|
1.53
|
%
|
Tax-exempt
|
|
|
2.15
|
%
|
|
2.18
|
%
|
|
2.33
|
%
|
|
2.35
|
%
|
|
2.34
|
%
|
Total
investments
|
|
|
1.75
|
%
|
|
1.73
|
%
|
|
1.83
|
%
|
|
1.68
|
%
|
|
1.67
|
%
|
Interest-bearing
balances with banks
|
|
|
5.24
|
%
|
|
5.04
|
%
|
|
4.66
|
%
|
|
3.41
|
%
|
|
1.77
|
%
|
Federal funds
sold
|
|
|
5.52
|
%
|
|
5.24
|
%
|
|
5.09
|
%
|
|
3.86
|
%
|
|
3.08
|
%
|
Total interest-earning
assets
|
|
|
4.40
|
%
|
|
4.31
|
%
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2.53
|
%
|
|
2.21
|
%
|
|
1.67
|
%
|
|
1.08
|
%
|
|
0.59
|
%
|
Short-term
borrowings
|
|
|
5.31
|
%
|
|
5.07
|
%
|
|
4.81
|
%
|
|
4.20
|
%
|
|
2.30
|
%
|
Long-term
debt
|
|
|
4.33
|
%
|
|
4.32
|
%
|
|
4.41
|
%
|
|
4.87
|
%
|
|
4.64
|
%
|
Subordinated
debt
|
|
|
5.33
|
%
|
|
5.40
|
%
|
|
5.44
|
%
|
|
5.33
|
%
|
|
5.33
|
%
|
Total interest-bearing
liabilities
|
|
|
2.61
|
%
|
|
2.29
|
%
|
|
1.84
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
Net interest
spread
|
|
|
1.79
|
%
|
|
2.02
|
%
|
|
2.32
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
Net interest
margin
|
|
|
2.44
|
%
|
|
2.61
|
%
|
|
2.82
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
Peoples Financial
Services Corp.
|
Consolidated Balance
Sheets (Unaudited)
|
(In
thousands)
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
At period end
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
39,285
|
|
$
|
37,774
|
|
$
|
31,354
|
|
$
|
37,675
|
|
$
|
35,000
|
|
Interest-bearing
balances in other banks
|
|
|
9,550
|
|
|
5,814
|
|
|
7,129
|
|
|
193
|
|
|
8,410
|
|
Federal funds
sold
|
|
|
205,700
|
|
|
93,100
|
|
|
102,100
|
|
|
|
|
|
69,600
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
|
382,227
|
|
|
395,826
|
|
|
418,125
|
|
|
477,703
|
|
|
477,590
|
|
Equity investments
carried at fair value
|
|
|
92
|
|
|
92
|
|
|
81
|
|
|
110
|
|
|
103
|
|
Held to
maturity
|
|
|
86,246
|
|
|
88,211
|
|
|
89,705
|
|
|
91,179
|
|
|
92,771
|
|
Total
investments
|
|
|
468,565
|
|
|
484,129
|
|
|
507,911
|
|
|
568,992
|
|
|
570,464
|
|
Loans held for
sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
653
|
|
Loans
|
|
|
2,870,969
|
|
|
2,843,238
|
|
|
2,818,043
|
|
|
2,730,116
|
|
|
2,623,706
|
|
Less: allowance for
credit losses
|
|
|
23,010
|
|
|
23,218
|
|
|
25,444
|
|
|
27,472
|
|
|
29,822
|
|
Net loans
|
|
|
2,847,959
|
|
|
2,820,020
|
|
|
2,792,599
|
|
|
2,702,644
|
|
|
2,593,884
|
|
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Premises and equipment,
net
|
|
|
61,936
|
|
|
57,712
|
|
|
56,561
|
|
|
55,667
|
|
|
54,394
|
|
Bank owned life
insurance
|
|
|
49,123
|
|
|
48,857
|
|
|
48,598
|
|
|
48,344
|
|
|
48,235
|
|
Deferred tax
assets
|
|
|
17,956
|
|
|
16,258
|
|
|
16,015
|
|
|
18,739
|
|
|
20,796
|
|
Accrued interest
receivable
|
|
|
12,769
|
|
|
11,406
|
|
|
11,678
|
|
|
11,715
|
|
|
10,082
|
|
Other intangible
assets, net
|
|
|
19
|
|
|
48
|
|
|
77
|
|
|
105
|
|
|
179
|
|
Other assets
|
|
|
49,567
|
|
|
43,287
|
|
|
41,079
|
|
|
46,071
|
|
|
41,739
|
|
Total
assets
|
|
$
|
3,825,799
|
|
$
|
3,681,775
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
691,071
|
|
$
|
713,375
|
|
$
|
746,089
|
|
$
|
772,765
|
|
$
|
769,935
|
|
Interest-bearing
|
|
|
2,674,012
|
|
|
2,516,106
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
|
Total
deposits
|
|
|
3,365,083
|
|
|
3,229,481
|
|
|
3,235,967
|
|
|
3,046,598
|
|
|
3,124,140
|
|
Short-term
borrowings
|
|
|
27,020
|
|
|
19,530
|
|
|
17,280
|
|
|
114,930
|
|
|
14,700
|
|
Long-term
debt
|
|
|
25,000
|
|
|
25,000
|
|
|
25,000
|
|
|
555
|
|
|
1,104
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Accrued interest
payable
|
|
|
4,777
|
|
|
4,701
|
|
|
2,304
|
|
|
903
|
|
|
1,129
|
|
Other
liabilities
|
|
|
46,529
|
|
|
38,276
|
|
|
36,286
|
|
|
42,179
|
|
|
40,923
|
|
Total
liabilities
|
|
|
3,501,409
|
|
|
3,349,988
|
|
|
3,349,837
|
|
|
3,238,165
|
|
|
3,214,996
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
14,093
|
|
|
14,272
|
|
|
14,323
|
|
|
14,321
|
|
|
14,330
|
|
Capital
surplus
|
|
|
121,870
|
|
|
125,371
|
|
|
126,231
|
|
|
126,850
|
|
|
126,845
|
|
Retained
earnings
|
|
|
247,857
|
|
|
244,017
|
|
|
237,522
|
|
|
230,515
|
|
|
224,238
|
|
Accumulated other
comprehensive loss
|
|
|
(59,430)
|
|
|
(51,873)
|
|
|
(49,442)
|
|
|
(56,336)
|
|
|
(63,603)
|
|
Total stockholders'
equity
|
|
|
324,390
|
|
|
331,787
|
|
|
328,634
|
|
|
315,350
|
|
|
301,810
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,825,799
|
|
$
|
3,681,775
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
Peoples Financial
Services Corp.
|
Loan and Asset
Quality Data (Unaudited)
|
(In
thousands)
|
|
At period
end
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
351,545
|
|
$
|
384,091
|
|
$
|
375,033
|
|
$
|
377,215
|
|
$
|
371,164
|
Non-taxable
|
|
|
229,635
|
|
|
225,796
|
|
|
224,343
|
|
|
222,043
|
|
|
224,764
|
Total
|
|
|
581,180
|
|
|
609,887
|
|
|
599,376
|
|
|
599,258
|
|
|
595,928
|
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
|
1,846,350
|
|
|
1,794,355
|
|
|
1,782,911
|
|
|
1,709,827
|
|
|
1,620,116
|
Residential
|
|
|
357,647
|
|
|
348,911
|
|
|
342,459
|
|
|
330,728
|
|
|
326,223
|
Total
|
|
|
2,203,997
|
|
|
2,143,266
|
|
|
2,125,370
|
|
|
2,040,555
|
|
|
1,946,339
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
Auto
|
|
|
78,953
|
|
|
83,348
|
|
|
86,587
|
|
|
76,491
|
|
|
70,006
|
Consumer
Other
|
|
|
6,839
|
|
|
6,737
|
|
|
6,710
|
|
|
13,812
|
|
|
11,433
|
Total
|
|
|
85,792
|
|
|
90,085
|
|
|
93,297
|
|
|
90,303
|
|
|
81,439
|
Total
|
|
$
|
2,870,969
|
|
$
|
2,843,238
|
|
$
|
2,818,043
|
|
$
|
2,730,116
|
|
$
|
2,623,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
At quarter end
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans
|
|
$
|
3,060
|
|
$
|
1,900
|
|
$
|
1,798
|
|
$
|
3,386
|
|
$
|
3,938
|
|
Accruing loans past
due 90 days or more
|
|
|
700
|
|
|
181
|
|
|
59
|
|
|
748
|
|
|
280
|
|
Foreclosed
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
3,760
|
|
$
|
2,081
|
|
$
|
1,857
|
|
$
|
4,134
|
|
$
|
4,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months
ended
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Allowance for credit
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
|
23,218
|
|
$
|
25,444
|
|
$
|
27,472
|
|
$
|
29,822
|
|
$
|
29,374
|
|
ASU 2016-13 Transition
Adjustment
|
|
|
|
|
|
|
|
|
(3,283)
|
|
|
|
|
|
|
|
Adjusted beginning
balance
|
|
|
23,218
|
|
|
25,444
|
|
|
24,189
|
|
|
29,822
|
|
|
29,374
|
|
Charge-offs
|
|
|
65
|
|
|
77
|
|
|
75
|
|
|
233
|
|
|
101
|
|
Recoveries
|
|
|
23
|
|
|
52
|
|
|
66
|
|
|
32
|
|
|
99
|
|
(Credit to) provision
for credit losses
|
|
|
(166)
|
|
|
(2,201)
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
Ending
balance
|
|
$
|
23,010
|
|
$
|
23,218
|
|
$
|
25,444
|
|
$
|
27,472
|
|
$
|
29,822
|
|
Peoples Financial
Services Corp.
|
Deposit and
Liquidity Detail (Unaudited)
|
(In
thousands)
|
|
At period
end
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
767,868
|
|
$
|
670,669
|
|
$
|
775,511
|
|
$
|
685,323
|
|
$
|
706,947
|
Interest bearing demand
and NOW accounts
|
|
|
825,066
|
|
|
760,690
|
|
|
698,888
|
|
|
772,712
|
|
|
813,743
|
Savings
accounts
|
|
|
447,684
|
|
|
470,340
|
|
|
500,709
|
|
|
523,931
|
|
|
530,124
|
Time deposits less than
$250
|
|
|
512,646
|
|
|
504,672
|
|
|
400,327
|
|
|
199,136
|
|
|
224,517
|
Time deposits $250 or
more
|
|
|
120,748
|
|
|
109,735
|
|
|
114,443
|
|
|
92,731
|
|
|
78,874
|
Total interest-bearing
deposits
|
|
|
2,674,012
|
|
|
2,516,106
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
Noninterest-bearing
deposits
|
|
|
691,071
|
|
|
713,375
|
|
|
746,089
|
|
|
772,765
|
|
|
769,935
|
Total
deposits
|
|
$
|
3,365,083
|
|
$
|
3,229,481
|
|
$
|
3,235,967
|
|
$
|
3,046,598
|
|
$
|
3,124,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
At period
end
|
|
|
Amount
|
|
Percent of
Total
|
|
|
Number of
accounts
|
|
Average
Balance
|
Deposit
Detail:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,383,211
|
|
41.0
|
%
|
|
70,835
|
$
|
20
|
Commercial
|
|
|
1,102,473
|
|
32.8
|
|
|
13,288
|
|
83
|
Municipal
|
|
|
607,785
|
|
18.1
|
|
|
1,811
|
|
336
|
Brokered
|
|
|
271,614
|
|
8.1
|
|
|
28
|
|
9,701
|
Total
Deposits
|
|
$
|
3,365,083
|
|
100.0
|
|
|
85,962
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured
|
|
|
955,942
|
|
28.4
|
%
|
|
|
|
|
Insured
|
|
|
2,409,141
|
|
71.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022
|
At period
end
|
|
|
Amount
|
|
Percent of
Total
|
|
|
Number of
accounts
|
|
Average
Balance
|
Deposit
Detail:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,501,641
|
|
49.3
|
%
|
|
71,039
|
$
|
21
|
Commercial
|
|
|
967,244
|
|
31.7
|
|
|
11,891
|
|
81
|
Municipal
|
|
|
554,099
|
|
18.2
|
|
|
1,623
|
|
341
|
Brokered
|
|
|
23,614
|
|
0.8
|
|
|
30
|
|
787
|
Total
Deposits
|
|
$
|
3,046,598
|
|
100.00
|
|
|
84,583
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured
|
|
|
1,125,252
|
|
36.9
|
%
|
|
|
|
|
Insured
|
|
|
1,921,346
|
|
63.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Available
|
At September 30,
2023
|
|
|
Total
Available
|
|
|
Outstanding
|
|
|
for Future
Liquidity
|
FHLB
advances
|
|
$
|
1,234,264
|
|
$
|
405,951
|
|
$
|
828,313
|
Federal Reserve -
Discount Window
|
|
|
266,519
|
|
|
|
|
|
266,519
|
Correspondent bank
lines of credit
|
|
|
18,000
|
|
|
|
|
|
18,000
|
Federal Reserve - Bank
Term Funding Program
|
|
|
4,000
|
|
|
|
|
|
4,000
|
Other sources of
liquidity:
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
|
382,580
|
|
|
271,614
|
|
|
110,966
|
Unencumbered
securities
|
|
|
371,444
|
|
|
|
|
|
371,444
|
Total sources of
liquidity
|
|
$
|
2,276,807
|
|
$
|
677,565
|
|
$
|
1,599,242
|
Peoples Financial
Services Corp.
|
Consolidated Balance
Sheets (Unaudited)
|
(In
thousands)
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Average quarterly balances
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,627,700
|
|
$
|
2,615,881
|
|
$
|
2,546,068
|
|
$
|
2,441,358
|
|
$
|
2,377,803
|
|
Tax-exempt
|
|
|
226,628
|
|
|
224,960
|
|
|
223,917
|
|
|
223,293
|
|
|
225,637
|
|
Total loans,
net
|
|
|
2,854,328
|
|
|
2,840,841
|
|
|
2,769,985
|
|
|
2,664,651
|
|
|
2,603,440
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
454,727
|
|
|
469,712
|
|
|
499,327
|
|
|
528,826
|
|
|
544,782
|
|
Tax-exempt
|
|
|
87,731
|
|
|
88,371
|
|
|
100,368
|
|
|
111,206
|
|
|
111,578
|
|
Total
investments
|
|
|
542,458
|
|
|
558,083
|
|
|
599,695
|
|
|
640,032
|
|
|
656,360
|
|
Interest-bearing
balances with banks
|
|
|
6,893
|
|
|
6,839
|
|
|
1,218
|
|
|
4,649
|
|
|
9,180
|
|
Federal funds
sold
|
|
|
134,583
|
|
|
61,093
|
|
|
19,353
|
|
|
14,477
|
|
|
13,665
|
|
Total interest-earning
assets
|
|
|
3,538,262
|
|
|
3,466,856
|
|
|
3,390,251
|
|
|
3,323,809
|
|
|
3,282,645
|
|
Other assets
|
|
|
191,781
|
|
|
184,020
|
|
|
184,594
|
|
|
169,153
|
|
|
180,861
|
|
Total
assets
|
|
$
|
3,730,043
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
$
|
2,581,691
|
|
$
|
2,493,680
|
|
$
|
2,337,951
|
|
$
|
2,301,974
|
|
$
|
2,228,829
|
|
Noninterest-bearing
|
|
|
688,301
|
|
|
711,729
|
|
|
744,931
|
|
|
758,889
|
|
|
770,833
|
|
Total
deposits
|
|
|
3,269,992
|
|
|
3,205,409
|
|
|
3,082,882
|
|
|
3,060,863
|
|
|
2,999,662
|
|
Short-term
borrowings
|
|
|
21,759
|
|
|
16,854
|
|
|
91,530
|
|
|
49,444
|
|
|
78,922
|
|
Long-term
debt
|
|
|
25,000
|
|
|
25,000
|
|
|
2,482
|
|
|
814
|
|
|
1,369
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Other
liabilities
|
|
|
47,788
|
|
|
39,494
|
|
|
38,917
|
|
|
41,436
|
|
|
38,840
|
|
Total
liabilities
|
|
|
3,397,539
|
|
|
3,319,757
|
|
|
3,248,811
|
|
|
3,185,557
|
|
|
3,151,793
|
|
Stockholders'
equity
|
|
|
332,504
|
|
|
331,119
|
|
|
326,034
|
|
|
307,405
|
|
|
311,713
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,730,043
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
Peoples Financial
Services Corp.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
(In thousands,
except share and per share data)
|
|
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on
sale of available for sale securities
|
|
|
|
|
|
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
Add: Gain (loss) on
sale of available for sale securities tax adjustment
|
|
|
|
|
|
|
|
|
17
|
|
|
(415)
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
869
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
144
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,471
|
|
$
|
9,527
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
Average common shares
outstanding - diluted
|
|
|
7,120,685
|
|
|
7,177,915
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
Core net income per
share
|
|
$
|
1.05
|
|
$
|
1.33
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
324,390
|
|
$
|
331,787
|
|
$
|
328,634
|
|
$
|
315,350
|
|
$
|
301,810
|
|
Less:
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Less: Other intangible
assets, net
|
|
|
19
|
|
|
48
|
|
|
77
|
|
|
105
|
|
|
179
|
|
Total tangible
stockholders' equity
|
|
$
|
261,001
|
|
$
|
268,369
|
|
$
|
265,187
|
|
$
|
251,875
|
|
$
|
238,261
|
|
Common shares
outstanding
|
|
|
7,040,851
|
|
|
7,130,409
|
|
|
7,150,757
|
|
|
7,158,017
|
|
|
7,162,750
|
|
Tangible book value per
share
|
|
$
|
37.07
|
|
$
|
37.64
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on
sale of available for sale securities
|
|
|
|
|
|
—
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
Add: Gain (loss) on
sale of available for sale securities tax adjustment
|
|
|
|
|
|
—
|
|
|
17
|
|
|
(415)
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
869
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
144
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,471
|
|
$
|
9,527
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
Average stockholders'
equity
|
|
$
|
332,504
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
Core return on average
stockholders' equity
|
|
|
8.91
|
%
|
|
11.54
|
%
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Average stockholders'
equity
|
|
$
|
332,504
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
Less: average
intangibles
|
|
|
63,404
|
|
|
63,433
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
Average tangible
stockholders' equity
|
|
$
|
269,101
|
|
$
|
267,686
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
Return on average
tangible stockholders' equity
|
|
|
9.95
|
%
|
|
14.12
|
%
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on
sale of available for sale securities
|
|
|
|
|
|
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
Add: Gain (loss) on
sale of available for sale securities tax adjustment
|
|
|
|
|
|
|
|
|
17
|
|
|
(415)
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
869
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
144
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,471
|
|
$
|
9,527
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
Average stockholders'
equity
|
|
$
|
332,504
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
Less: average
intangibles
|
|
|
63,404
|
|
|
63,433
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
Average tangible
stockholders' equity
|
|
$
|
269,101
|
|
$
|
267,686
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
Core return on average
tangible stockholders' equity
|
|
|
11.01
|
%
|
|
14.28
|
%
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
6,746
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain (loss) on
sale of available for sale securities
|
|
|
|
|
|
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
Add: Gain (loss) on
sale of available for sale securities tax adjustment
|
|
|
|
|
|
|
|
|
17
|
|
|
(415)
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
869
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
144
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,471
|
|
$
|
9,527
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
Average
assets
|
|
$
|
3,730,043
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
Core return on average
assets
|
|
|
0.79
|
%
|
|
1.05
|
%
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
Peoples Financial
Services Corp.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
(In thousands,
except share and per share data)
|
|
|
|
Sept 30
|
|
Sept 30
|
|
Nine months
ended
|
|
2023
|
|
2022
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Add: Gain on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
990
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
163
|
|
|
|
|
Core net
income
|
|
$
|
24,513
|
|
$
|
28,951
|
|
Average common shares
outstanding - diluted
|
|
|
7,165,570
|
|
|
7,214,966
|
|
Core net income per
share
|
|
$
|
3.42
|
|
$
|
4.01
|
|
|
|
|
|
|
|
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Add: Gain on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
990
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
163
|
|
|
|
|
Core net
income
|
|
$
|
24,513
|
|
$
|
28,951
|
|
Average stockholders'
equity
|
|
|
329,909
|
|
|
324,521
|
|
Core return on average
stockholders' equity
|
|
|
9.93
|
%
|
|
11.93
|
%
|
|
|
|
|
|
|
|
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Average stockholders'
equity
|
|
|
329,909
|
|
|
324,521
|
|
Less: average
intangibles
|
|
|
63,432
|
|
|
63,694
|
|
Average tangible
stockholders' equity
|
|
$
|
266,477
|
|
$
|
260,827
|
|
Return on average
tangible stockholders' equity
|
|
|
11.92
|
%
|
|
14.84
|
%
|
|
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Add: Gain on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
990
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
163
|
|
|
|
|
Core net
income
|
|
$
|
24,513
|
|
$
|
28,951
|
|
Average stockholders'
equity
|
|
|
329,909
|
|
|
324,521
|
|
Less: average
intangibles
|
|
|
63,432
|
|
|
63,694
|
|
Average tangible
stockholders' equity
|
|
$
|
266,477
|
|
$
|
260,827
|
|
Core return on average
tangible stockholders' equity
|
|
|
12.30
|
%
|
|
14.84
|
%
|
|
|
|
|
|
|
|
|
Core return on
average assets:
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
23,750
|
|
$
|
28,951
|
|
Adjustments:
|
|
|
|
|
|
|
|
Less: Gain on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Add: Gain on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
|
|
Add: Acquisition
related expenses
|
|
|
990
|
|
|
|
|
Less: Acquisition
related expenses tax adjustment
|
|
|
163
|
|
|
|
|
Core net
income
|
|
$
|
24,513
|
|
$
|
28,951
|
|
Average
assets
|
|
|
3,652,490
|
|
|
3,390,068
|
|
Core return on average
assets
|
|
|
0.90
|
%
|
|
1.14
|
%
|
Peoples Financial
Services Corp.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
(In thousands,
except share and per share data)
|
|
The following tables
reconcile the non-GAAP financial measures of FTE net
interest income for the three and nine months ended September 30,
2023 and 2022:
|
|
Three months ended
September 30
|
|
2023
|
|
2022
|
|
Interest income
(GAAP)
|
|
$
|
38,765
|
|
$
|
29,230
|
|
Adjustment to
FTE
|
|
|
475
|
|
|
494
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
39,240
|
|
|
29,724
|
|
Interest
expense
|
|
|
17,488
|
|
|
4,232
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
21,752
|
|
$
|
25,492
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30
|
|
2023
|
|
2022
|
|
Interest income
(GAAP)
|
|
$
|
109,779
|
|
$
|
79,693
|
|
Adjustment to
FTE
|
|
|
1,440
|
|
|
1,399
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
111,219
|
|
|
81,092
|
|
Interest
expense
|
|
|
43,294
|
|
|
8,357
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
67,925
|
|
$
|
72,735
|
|
|
The efficiency ratio
is noninterest expenses, less amortization of intangible
assets and acquisition related costs, as a percentage
of FTE net interest income
plus noninterest income. The following tables reconcile
the non-GAAP financial measures of the efficiency ratio to GAAP for
the three and nine months ended September 30, 2023 and
2022:
|
|
Three months ended
September 30
|
|
2023
|
|
2022
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
17,054
|
|
$
|
15,935
|
|
Less: Amortization of
intangible assets expense
|
|
|
29
|
|
|
96
|
|
Less: Acquisition
related expenses
|
|
|
869
|
|
|
|
|
Noninterest
expense (non-GAAP)
|
|
|
16,156
|
|
|
15,839
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
21,277
|
|
|
24,998
|
|
Plus: Taxable
equivalent adjustment
|
|
|
475
|
|
|
494
|
|
Noninterest income
(GAAP)
|
|
|
3,692
|
|
|
3,317
|
|
Less: Net gains
(losses) on equity securities
|
|
|
|
|
|
(18)
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
25,444
|
|
$
|
28,827
|
|
Efficiency ratio
(non-GAAP)
|
|
|
63.50
|
%
|
|
54.95
|
%
|
|
|
|
|
|
|
|
|
Nine months ended
September 30
|
|
2023
|
|
2022
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
50,222
|
|
$
|
45,717
|
|
Less: Amortization of
intangible assets expense
|
|
|
86
|
|
|
289
|
|
Less: Acquisition
related expenses
|
|
|
990
|
|
|
|
|
Noninterest
expense (non-GAAP)
|
|
|
49,146
|
|
|
45,428
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
66,485
|
|
|
71,336
|
|
Plus: Taxable
equivalent adjustment
|
|
|
1,440
|
|
|
1,399
|
|
Noninterest income
(GAAP)
|
|
|
10,918
|
|
|
10,619
|
|
Less: Net losses on
equity securities
|
|
|
(17)
|
|
|
(37)
|
|
Less: Gains on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
78,779
|
|
$
|
83,391
|
|
Efficiency ratio
(non-GAAP)
|
|
|
62.38
|
%
|
|
54.48
|
%
|
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SOURCE Peoples Financial Services Corp.