SCRANTON, Pa., April 27,
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 months ended March 31, 2023.
Peoples reported net income of $7.6
million, or $1.05 per diluted
share for the three months ended March 31,
2023, a 21.3% decrease when compared to $9.6 million, or $1.33 per share for the comparable period of
2022. The decrease in earnings for the three months ended
March 31, 2023 was due to a higher
provision for credit losses and higher operating expenses which
more than offset an increase in net interest income and noninterest
income.
Net interest income for the current period increased
$0.4 million when compared to the
three months ended March 31, 2022 on
strong loan growth resulting in higher interest income partially
offset by increased costs of funds. The provision for credit losses
increased $1.0 million due to loan
growth and our Current Expected Credit Losses (CECL) related model
impact from updated forecasted economic conditions. The year
ago period included a provision for credit losses of $0.3 million based on our allowance for credit
losses methodology and then current conditions. Noninterest
expenses for the three months ended March
31, 2023 increased $2.2
million compared to the prior year's period due to higher
salaries and benefits, other expenses, including an increase in
FDIC assessments and loan account processing fees, and gains on
other real estate owned in the year ago period.
During the quarter ended March 31,
2023, $65.6 million in
securities were sold at a net gain of $81
thousand as part of our strategy to add liquidity and reduce
short-term borrowings. Core net income, a non-GAAP
measure1, which we defined as excluding the gains or
losses from sales of our investment securities portfolio, for the
three months ended March 31, totaled
$7.5 million and $9.6 million in 2023 and 2022, respectively. Core
net income per share, a non-GAAP measure1, for the three
months ended March 31, 2023 was
$1.04, a 21.8% decrease from
$1.33 reported for the same period in
2022.
FINANCIAL HIGHLIGHTS
- Net income for the three months ended March 31, 2023 was $7.6
million or $1.05 per diluted
share.
- Dividends paid during the three months ended March 31, 2023 totaled $0.41 per share representing a 5.1% increase from
2022.
- Sold $65.6 million of investment
securities, including U.S. Treasury bonds, tax-exempt municipals
and mortgage-backed securities at a net gain of $81 thousand. The proceeds were used to pay-down
higher cost short-term borrowings.
- Adopted the CECL accounting standard effective January 1, 2023, which resulted in a decrease to
the Allowance for Credit Losses (ACL) of $3.3 million and an increase to the reserve for
unfunded commitments of $0.3 million.
The adoption also resulted in an increase to retained earnings of
$2.3 million, net of tax.
- Net loan growth for the three months ended March 31, 2023 was $90.0
million or 13.5% annualized and consisted primarily of
commercial real estate loans.
- The provision for credit losses was $1.3
million for the three months ended March 31, 2023 due to loan growth and CECL
related model impact from updated forecasted economic
conditions.
- Core deposit growth for the three months ended March 31, 2023 totaled $28.0 million. In addition, to improve on-balance
sheet liquidity, brokered deposits were increased $161.4 million, which included $166.9 million of longer-term Callable CDs at a
weighted average cost of 5.18%. Overall, total deposits grew by
$189.4 million to $3.2 billion.
- At March 31, 2023, the Company
had $1.7 billion in additional
liquidity available in the form of 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,
representing 45.7% of total assets and 51.9% of total
deposits.
- At March 31, 2023, the Company
was well capitalized as evidenced by the following capital ratios:
leverage ratio of 9.66%, common equity tier 1 capital ratio of
12.00% , tier 1 capital ratio of 12.00% and total capital ratio of
12.88%
- 16,573 shares were purchased at an average price per share of
$49.79 and retired under the
Company's common stock repurchase plan. The Company, in response to
market volatility and economic uncertainty caused by the two large
bank failures, has temporarily suspended its stock repurchase plan
to preserve capital.
- Asset quality remained strong as nonperforming assets as a
percentage of total assets at March 31,
2023 was 0.05%, compared to 0.12% and 0.14% at December 31, 2022 and March 31, 2022.
1 See reconciliation of non-GAAP
financial measures on p. 16 - 17
INCOME STATEMENT REVIEW
In March 2022, the Federal Open
Market Committee ("FOMC") began increasing the federal funds rate
in an attempt to curb inflation. Since then, there have
been nine rate increases, totaling 475 basis points. There
were seven rate hikes in 2022, two increases during the first three
months of 2023 and an additional rate hike is anticipated at the
May 2023 FOMC meeting. These
increases directly impact our core source of income, net interest
income through yields on investments and loans and the cost of
funding via deposits and borrowings. Through March 31, 2023, we have realized higher rates on
our existing adjustable and variable rate loans and new
originations. The benefit of higher asset yields however, has
been offset by higher funding costs as rate-sensitive depositors
seek higher rates. We anticipate that funding costs will
continue to increase in the future as a result of the FOMC rate
adjustments, local competition for deposits and the cost of
alternative funding.
Calculated on a fully taxable equivalent basis, a non-GAAP
measure1, our net interest margin for the three months
ended March 31, 2023 was 2.81%, a
decrease of 16 basis points when compared to the 2.97% for the
three months ended December 31, 2022
and March 31, 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 32 basis points to 4.16%
during the three months ended March 31,
2023 from 3.84% during the three months ended December 31, 2022, and increased 94 basis points
when compared to 3.22% for the three months ended March 31, 2022. Our cost of funds, which
represents our average rate paid on total interest-bearing
liabilities, increased 65 basis points to 1.85% for the three
months ended March 31, 2023 when
compared to 1.20% during the three months ended December 31, 2022 and increased 150 basis points
compared to 0.35% in the prior year period. We continued to
increase interest rates paid on deposits during the quarter in
order to pay competitive rates to attract new deposits and retain
current balances. Our cost of interest-bearing deposits
increased 60 basis points during the current three month period to
1.68% from 1.08% in the prior three month period ended December 31, 2022. Our cost of total
deposits for the three months ended March
31, 2023 increased 46 basis points to 1.27% from 0.81%
during the three months ended December 31,
2022.
On a trailing twelve month basis, our average cost of
interest-bearing deposits increased 141 basis points, from 0.27% at
March 31, 2022 to 1.68% at
March 31, 2023, representing a beta
on interest-bearing deposits of approximately 31.3%. Our overall
cost of total deposits increased 107 basis points from 0.20% at
March 31, 2022 to 1.27%, representing
a beta on total deposits of approximately 23.8%. Each of
these increases was due to the higher costs of deposits and
short-term borrowings used to fund loan growth.
First Quarter 2023 Results – Comparison to Prior-Year
Quarter
Tax-equivalent net interest income, a non-GAAP
measure1, for the three months ended March 31, increased $0.4
million or 2.0% to $23.5
million in 2023 from $23.1
million in 2022. The increase in tax equivalent net interest
income was due to higher tax-equivalent interest income of
$9.7 million less elevated interest
expense of $9.3 million.
The higher interest income was the result of an increase in
yield and average balance of earning assets. Average earning
assets were $236.6 million higher in
the three month period ended March 31,
2023 when compared to the year ago period. PPP loans
averaged $22.2 million in the
three-month period ended March 31,
2023 with interest and net fees totaling approximately
$73 thousand compared to average
balances of $49.0 million with
interest and net fees totaling $1.0
million in the year ago period. The tax-equivalent yield on
the loan portfolio was 4.66% and 3.85% for the three months ended
March 31, 2023 and 2022. Excluding
PPP loans, the tax-equivalent yield of the loan portfolio was 4.68%
and 3.75% for the three months ended March
31, 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 $2.8 billion for the three months ended
March 31, 2023 and $2.4 billion for the comparable period in 2022.
For the three months ended March 31,
the tax-equivalent yield on total investments increased to 1.83% in
2023 from 1.68% in 2022. Average investments totaled $599.7 million in the first three months of 2023
and $633.7 million in the first three
months of 2022.
The increased interest expense in the three months ended
March 31, 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
March 31, 2023 compared to the year
ago period by 107 basis points to 1.27%, and the cost of
interest-bearing deposits increased 141 basis points to 1.68% from
0.27% in the previous year three month period. Short-term FHLB
borrowings were utilized in the current period to fund loan growth;
short term borrowings averaged $91.5
million in the current period and added $1.1 million of interest expense at an average
cost of 4.81% compared to no short-term borrowings in the year ago
period.
Average interest-bearing liabilities also increased $217.9 million for the three months ended
March 31, 2023, compared to the
corresponding period last year due to an increase in non-maturity
and brokered deposits and short-term borrowings. Average
noninterest-bearing deposits increased $10.5
million or 1.4% from the prior period and now represent
24.2% of total deposits.
For the three months ended March 31,
2023, the provision for credit losses was $1.3 million compared to $0.3 million in the year ago period. The
current period provision increase was due to loan growth and the
impact of the economic forecast on portfolio loss rates.
Noninterest income for the three months ended March 31, 2023 was $3.7
million, a $0.3 million
increase from the prior year's quarter due primarily to higher
retail and commercial account service charges, increased debit card
interchange revenue and a higher FHLB dividend, partially offset by
lower swap related revenue.
Noninterest expense increased $2.2
million or 15.4% to $16.5
million for the three months ended March 31, 2023, from $14.3
million for the three months ended March 31, 2022. Salaries and employee benefits
increased $1.0 million or 12.9% 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 transactional costs relating to our expansion market
volume. Other expenses increased $0.5
million due primarily to higher FDIC assessments and loan
account processing fees. The year ago period included gains
on the sale of other real estate owned of $0.5 million which we classify in noninterest
expense; the current year period included no gains.
The provision for income tax expense decreased $0.4 million for the three months ended
March 31, 2023 compared to the year
ago period due to lower taxable income in the current year's
period. The effective tax rate for the quarter ended
March 31, 2023 was 15.5% compared to
16.0% in the year ago period.
BALANCE SHEET REVIEW
At March 31, 2023, total assets,
loans and deposits were $3.7 billion,
$2.8 billion and $3.2 billion, respectively. During the quarter,
investment sales, deposit growth and FHLB term borrowings were
utilized to fund loan growth and repay short-term borrowings.
Loan growth for the three months ended March 31, 2023, excluding PPP loans, was
$88.0 million or 13.1%
annualized. This represents a reduction in growth compared to
the three months ended December 31,
2022, in which loan growth was $106.4
million. Higher interest rates and economic
uncertainty may result in lower loan demand and lower growth over
the near-term. Commercial real estate loans made up the
majority of the growth with residential real estate loans also
increasing. At March 31, 2023,
gross PPP loans remaining totaled $22.2
million and net deferred PPP fees remaining totaled
$0.2 million and are expected to be
earned during 2023 as the remaining SBA PPP loans are forgiven or
repaid.
Total investments were $507.9
million at March 31, 2023,
compared to $569.0 million at
December 31, 2022. At
March 31, 2023, the
available-for-sale securities totaled $418.1
million and the held-to-maturity securities totaled
$89.7 million and comprised 82.3% and
17.7% of the overall portfolio, respectively. The unrealized
losses on the held-to-maturity portfolio totaled $12.6 million and $14.6
million at March 31, 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 $189.4
million during the three months ending March 31, 2023. Noninterest-bearing
deposits decreased $26.7 million and
interest-bearing deposits increased $216.0
million during the three months ended March 31, 2023. The increase in deposits
was due to a $161.4 million net
increase in brokered deposits and a $123.3
million increase in retail and commercial accounts partially
offset by a $95.3 million seasonal
decrease in municipal deposits. During the three months ended
March 31, 2023, the Company utilized
a portion of its contingency funding sources and added $166.9 million of longer-term callable brokered
CDs to improve its on-balance sheet liquidity position and mitigate
risk to higher rates. The Company has the option to call the
CDs after an initial three or six month period.
The deposit base consisted of 48.6% retail accounts, 33.2%
commercial accounts, 12.5% municipal relationships and 5.7%
brokered deposits at March 31,
2023. At March 31, 2023, 76.6%
of deposits were fully insured by the FDIC while $757.4 million or 23.4% of total deposits were
not insured by the FDIC. In addition, at March 31, 2023 $292.0
million in letters of credit were pledged as collateral for
municipal 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 three months ended March 31,
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 overnight borrowings from the FHLB, the Federal Reserve's
Discount Window and Borrower-in-Custody (BIC) program,
correspondent bank lines of credit, brokered deposit capacity and
unencumbered securities. Although we do not plan to access
the Federal Reserve's Bank Term Funding Program (BTFP), we have
$391.0 million of borrowing capacity
based on the par value of unencumbered securities available as
collateral under this line. At March
31, 2023, we had $1.7 billion
in additional liquidity representing 45.7% of total assets and
51.9% of total deposits. For additional information on our
deposit portfolio and additional sources of liquidity see the
tables on page 14.
The Company maintained its well capitalized position at
March 31, 2023. Stockholders'
equity equaled $328.6 million or
$45.96 per share at March 31, 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 and a decrease
to accumulated other comprehensive loss ("AOCI") resulting from a
reduction in the unrealized loss on available for sale securities.
The net after tax unrealized loss on available for sale
securities included in AOCI at March 31,
2023 and December 31, 2022 was
$43.5 million and $52.0 million, respectively.
Tangible stockholders' equity, a non-GAAP measure1,
increased to $37.09 per share at
March 31, 2023, from $35.19 per share at December 31, 2022. Dividends declared for
the three months ended March 31, 2023
amounted to $0.41 per share, a 5.1%
increase from the 2022 period, representing a dividend payout ratio
of 39.0%. During the three months ended March 31, 2023, 16,573 shares were purchased and
retired under the Company's common stock repurchase plan at an
average price per share of $49.79. In response to market volatility
and economic uncertainty, the Company has temporarily suspended its
stock repurchase plan to preserve capital.
ASSET QUALITY REVIEW
Asset quality metrics remained strong and continued to
improve. Nonperforming assets were $1.9 million or 0.07% of loans, net and
foreclosed assets at March 31, 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 0.05% at March 31, 2023 compared to 0.12% at December 31, 2022. The decrease in
nonperforming assets was due to the reclassification of troubled
debt restructurings due to a change in accounting guidance, reduced
levels of loans 90 days or more past due and still accruing,
collection activities, and a decline in nonaccrual loans as a
result of a sizable principal reduction on a commercial real estate
loan. At March 31, 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 CECL. As a result
of the transition to CECL, the allowance for credit losses was
reduced $3.3 million to $24.2 million and the reserve for unfunded
commitments was increased $270
thousand to $450
thousand. The cumulative adjustment, net of tax, was
offset to retained earnings. In addition to the transition
adjustment, a $1.3 million provision
and net charge-offs of $9 thousand
were applied. The allowance for credit losses equaled $25.4 million or 0.90% of loans, net at
March 31, 2023 compared to
$27.5 million or 1.01% of loans, net,
at December 31, 2022. Loans charged-off, net of
recoveries, for the three months ended March 31, 2023 were minimal at $9 thousand, compared to $0.3 million or 0.05% 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 the 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; 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; the
soundness of other financial institutions and any indirect exposure
related to the closings of Silicon Valley Bank ("SVB"), Signature
Bank and Silvergate Bank and their impact on the broader market
through other customers, suppliers and partners or that the
conditions which resulted in the liquidity concerns with SVB,
Signature Bank and Silvergate Bank may also adversely impact,
directly or indirectly, other financial institutions and market
participants with which the Company has commercial or deposit
relationships 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
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Key performance
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1.05
|
|
$
|
1.27
|
|
$
|
1.38
|
|
$
|
1.30
|
|
$
|
1.33
|
|
Core net income
(1)
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
$
|
1.30
|
|
$
|
1.33
|
|
Cash dividends
declared
|
|
$
|
0.41
|
|
$
|
0.40
|
|
$
|
0.40
|
|
$
|
0.39
|
|
$
|
0.39
|
|
Book value
|
|
$
|
45.96
|
|
$
|
44.06
|
|
$
|
42.14
|
|
$
|
43.50
|
|
$
|
44.64
|
|
Tangible book value
(1)
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
$
|
34.62
|
|
$
|
35.76
|
|
Market
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
53.48
|
|
$
|
57.60
|
|
$
|
56.09
|
|
$
|
56.99
|
|
$
|
52.99
|
|
Low
|
|
$
|
42.52
|
|
$
|
47.00
|
|
$
|
46.84
|
|
$
|
47.41
|
|
$
|
46.35
|
|
Closing
|
|
$
|
43.35
|
|
$
|
51.84
|
|
$
|
46.84
|
|
$
|
55.84
|
|
$
|
50.48
|
|
Market
capitalization
|
|
$
|
309,985
|
|
$
|
371,072
|
|
$
|
335,503
|
|
$
|
400,410
|
|
$
|
362,398
|
|
Common shares
outstanding
|
|
|
7,150,757
|
|
|
7,158,018
|
|
|
7,162,750
|
|
|
7,170,661
|
|
|
7,179,037
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
|
|
9.43
|
%
|
|
11.79
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
|
11.82
|
%
|
Core return on average
stockholders' equity (1)
|
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
|
11.82
|
%
|
Return on average
tangible stockholders' equity
|
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
14.65
|
%
|
Core return on average
tangible stockholders' equity (1)
|
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
14.65
|
%
|
Return on average
assets
|
|
|
0.86
|
%
|
|
1.04
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
|
1.17
|
%
|
Core return on average
assets (1)
|
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
|
1.17
|
%
|
Stockholders' equity to
total assets
|
|
|
8.93
|
%
|
|
8.87
|
%
|
|
8.58
|
%
|
|
9.12
|
%
|
|
9.56
|
%
|
Efficiency ratio
(1)(2)
|
|
|
60.61
|
%
|
|
60.07
|
%
|
|
54.95
|
%
|
|
54.89
|
%
|
|
53.57
|
%
|
Nonperforming assets to
loans, net, and foreclosed assets
|
|
|
0.07
|
%
|
|
0.15
|
%
|
|
0.16
|
%
|
|
0.18
|
%
|
|
0.20
|
%
|
Nonperforming assets to
total assets
|
|
|
0.05
|
%
|
|
0.12
|
%
|
|
0.12
|
%
|
|
0.13
|
%
|
|
0.14
|
%
|
Net charge-offs to
average loans, net
|
|
|
0.00
|
%
|
|
0.03
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.05
|
%
|
Allowance for credit
losses to loans, net
|
|
|
0.90
|
%
|
|
1.01
|
%
|
|
1.14
|
%
|
|
1.14
|
%
|
|
1.18
|
%
|
Interest-bearing assets
yield (FTE) (3)
|
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
|
3.34
|
%
|
|
3.22
|
%
|
Cost of
funds
|
|
|
1.85
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
|
0.39
|
%
|
|
0.35
|
%
|
Net interest spread
(FTE) (3)
|
|
|
2.31
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
|
2.95
|
%
|
|
2.87
|
%
|
Net interest margin
(FTE) (3)
|
|
|
2.81
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
|
3.06
|
%
|
|
2.97
|
%
|
|
|
(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 (Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Mar 31
|
|
Three months
ended
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
30,049
|
|
$
|
20,853
|
|
Tax-exempt
|
|
|
1,389
|
|
|
1,161
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
2,124
|
|
|
1,972
|
|
Tax-exempt
|
|
|
457
|
|
|
510
|
|
Dividends
|
|
|
2
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
14
|
|
|
2
|
|
Interest on federal
funds sold
|
|
|
243
|
|
|
73
|
|
Total interest
income
|
|
|
34,278
|
|
|
24,571
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
9,678
|
|
|
1,468
|
|
Interest on short-term
borrowings
|
|
|
1,086
|
|
|
|
|
Interest on long-term
debt
|
|
|
27
|
|
|
28
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
444
|
|
Total interest
expense
|
|
|
11,234
|
|
|
1,940
|
|
Net interest
income
|
|
|
23,044
|
|
|
22,631
|
|
Provision for credit
losses
|
|
|
1,264
|
|
|
300
|
|
Net interest income
after provision for credit losses
|
|
|
21,780
|
|
|
22,331
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
1,965
|
|
|
1,692
|
|
Merchant services
income
|
|
|
118
|
|
|
114
|
|
Commissions and fees on
fiduciary activities
|
|
|
557
|
|
|
555
|
|
Wealth management
income
|
|
|
398
|
|
|
351
|
|
Mortgage banking
income
|
|
|
103
|
|
|
144
|
|
Increase in cash
surrender value of life insurance
|
|
|
258
|
|
|
218
|
|
Interest rate swap
revenue
|
|
|
223
|
|
|
343
|
|
Net (losses) gains on
equity investment securities
|
|
|
(29)
|
|
|
4
|
|
Net gains on sale of
investment securities available for sale
|
|
|
81
|
|
|
|
|
Total noninterest
income
|
|
|
3,674
|
|
|
3,421
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
9,080
|
|
|
8,040
|
|
Net occupancy and
equipment expense
|
|
|
4,103
|
|
|
3,825
|
|
Amortization of
intangible assets
|
|
|
29
|
|
|
96
|
|
Net losses (gains) on
sale of other real estate owned
|
|
|
|
|
|
(458)
|
|
Other
expenses
|
|
|
3,274
|
|
|
2,786
|
|
Total noninterest
expense
|
|
|
16,486
|
|
|
14,289
|
|
Income before income
taxes
|
|
|
8,968
|
|
|
11,463
|
|
Provision for income
tax expense
|
|
|
1,389
|
|
|
1,833
|
|
Net income
|
|
$
|
7,579
|
|
$
|
9,630
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on investment securities available for sale
|
|
$
|
10,836
|
|
$
|
(32,612)
|
|
Reclassification
adjustment for gains on available for sale securities included in
net income
|
|
|
(81)
|
|
|
|
|
Change in derivative
fair value
|
|
|
(1,970)
|
|
|
(493)
|
|
Income tax expense
(benefit) related to other comprehensive income (loss)
|
|
|
1,891
|
|
|
(6,952)
|
|
Other comprehensive
income (loss), net of income tax expense (benefit)
|
|
|
6,894
|
|
|
(26,153)
|
|
Comprehensive income
(loss)
|
|
$
|
14,473
|
|
$
|
(16,523)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.06
|
|
$
|
1.34
|
|
Net income -
diluted
|
|
|
1.05
|
|
|
1.33
|
|
Cash dividends
declared
|
|
|
0.41
|
|
|
0.39
|
|
Average common shares
outstanding - basic
|
|
|
7,157,553
|
|
|
7,172,455
|
|
Average common shares
outstanding - diluted
|
|
|
7,198,970
|
|
|
7,216,421
|
|
Peoples Financial
Services Corp.
Consolidated
Statements of Income (Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
$
|
22,009
|
|
$
|
20,853
|
|
Tax-exempt
|
|
|
1,389
|
|
|
1,367
|
|
|
1,338
|
|
|
1,218
|
|
|
1,161
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
2,124
|
|
|
2,058
|
|
|
2,096
|
|
|
2,108
|
|
|
1,972
|
|
Tax-exempt
|
|
|
457
|
|
|
520
|
|
|
521
|
|
|
515
|
|
|
510
|
|
Dividends
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
14
|
|
|
40
|
|
|
41
|
|
|
18
|
|
|
2
|
|
Interest on federal
funds sold
|
|
|
243
|
|
|
141
|
|
|
106
|
|
|
22
|
|
|
73
|
|
Total interest
income
|
|
|
34,278
|
|
|
31,641
|
|
|
29,230
|
|
|
25,892
|
|
|
24,571
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
9,678
|
|
|
6,251
|
|
|
3,316
|
|
|
1,597
|
|
|
1,468
|
|
Interest on short-term
borrowings
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
|
122
|
|
|
|
|
Interest on long-term
debt
|
|
|
27
|
|
|
9
|
|
|
16
|
|
|
23
|
|
|
28
|
|
Interest on
subordinated debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
443
|
|
|
444
|
|
Total interest
expense
|
|
|
11,234
|
|
|
7,228
|
|
|
4,232
|
|
|
2,185
|
|
|
1,940
|
|
Net interest
income
|
|
|
23,044
|
|
|
24,413
|
|
|
24,998
|
|
|
23,707
|
|
|
22,631
|
|
Provision for (reversal
of) credit losses
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
|
950
|
|
|
300
|
|
Net interest income
after provision for (reversal of) credit losses
|
|
|
21,780
|
|
|
26,562
|
|
|
24,548
|
|
|
22,757
|
|
|
22,331
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
1,965
|
|
|
1,909
|
|
|
1,714
|
|
|
1,761
|
|
|
1,692
|
|
Merchant services
income
|
|
|
118
|
|
|
131
|
|
|
157
|
|
|
562
|
|
|
114
|
|
Commissions and fees on
fiduciary activities
|
|
|
557
|
|
|
532
|
|
|
591
|
|
|
551
|
|
|
555
|
|
Wealth management
income
|
|
|
398
|
|
|
366
|
|
|
339
|
|
|
374
|
|
|
351
|
|
Mortgage banking
income
|
|
|
103
|
|
|
104
|
|
|
135
|
|
|
128
|
|
|
144
|
|
Increase in cash
surrender value of life insurance
|
|
|
258
|
|
|
289
|
|
|
269
|
|
|
244
|
|
|
218
|
|
Interest rate swap
revenue
|
|
|
223
|
|
|
(135)
|
|
|
130
|
|
|
284
|
|
|
343
|
|
Net gains (losses) on
investment equity securities
|
|
|
(29)
|
|
|
6
|
|
|
(18)
|
|
|
(23)
|
|
|
4
|
|
Net gains (losses) on
sale of investment securities available-for-sale
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
income
|
|
|
3,674
|
|
|
1,226
|
|
|
3,317
|
|
|
3,881
|
|
|
3,421
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
9,080
|
|
|
9,188
|
|
|
8,474
|
|
|
7,851
|
|
|
8,040
|
|
Net occupancy and
equipment expense
|
|
|
4,103
|
|
|
4,905
|
|
|
3,898
|
|
|
3,950
|
|
|
3,825
|
|
Amortization of
intangible assets
|
|
|
29
|
|
|
74
|
|
|
96
|
|
|
97
|
|
|
96
|
|
Net losses (gains) on
sale of other real estate
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
|
(458)
|
|
Other
expenses
|
|
|
3,274
|
|
|
2,793
|
|
|
3,467
|
|
|
3,615
|
|
|
2,786
|
|
Total noninterest
expense
|
|
|
16,486
|
|
|
16,960
|
|
|
15,935
|
|
|
15,493
|
|
|
14,289
|
|
Income before income
taxes
|
|
|
8,968
|
|
|
10,828
|
|
|
11,930
|
|
|
11,145
|
|
|
11,463
|
|
Income tax
expense
|
|
|
1,389
|
|
|
1,689
|
|
|
1,962
|
|
|
1,792
|
|
|
1,833
|
|
Net income
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss)
on investment securities available for sale
|
|
$
|
10,836
|
|
$
|
6,356
|
|
$
|
(21,510)
|
|
$
|
(18,669)
|
|
$
|
(32,612)
|
|
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
|
|
|
(1,970)
|
|
|
12
|
|
|
(46)
|
|
|
(201)
|
|
|
(493)
|
|
Income tax expense
(benefit) related to other comprehensive income
(loss)
|
|
|
1,891
|
|
|
1,447
|
|
|
(4,527)
|
|
|
(3,963)
|
|
|
(6,952)
|
|
Other comprehensive
income (loss), net of income tax expense (benefit)
|
|
|
6,894
|
|
|
7,267
|
|
|
(17,029)
|
|
|
(14,907)
|
|
|
(26,153)
|
|
Comprehensive income
(loss)
|
|
$
|
14,473
|
|
$
|
16,406
|
|
$
|
(7,061)
|
|
$
|
(5,554)
|
|
$
|
(16,523)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.06
|
|
$
|
1.28
|
|
$
|
1.39
|
|
$
|
1.30
|
|
$
|
1.34
|
|
Net income -
diluted
|
|
|
1.05
|
|
|
1.27
|
|
|
1.38
|
|
|
1.30
|
|
|
1.33
|
|
Cash dividends
declared
|
|
|
0.41
|
|
|
0.40
|
|
|
0.40
|
|
|
0.39
|
|
|
0.39
|
|
Average common shares
outstanding - basic
|
|
|
7,157,553
|
|
|
7,158,329
|
|
|
7,169,809
|
|
|
7,172,181
|
|
|
7,172,455
|
|
Average common shares
outstanding - diluted
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
|
7,215,890
|
|
|
7,216,421
|
|
Peoples Financial
Services Corp.
Net Interest Margin
(Unaudited)
(In thousands, fully
taxable equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2023
|
|
|
March 31, 2022
|
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,546,068
|
|
$
|
30,049
|
|
4.79
|
%
|
|
$
|
2,148,251
|
|
$
|
20,853
|
|
3.94
|
%
|
Tax-exempt
|
|
|
223,917
|
|
|
1,757
|
|
3.18
|
|
|
|
203,645
|
|
|
1,470
|
|
2.93
|
|
Total loans
|
|
|
2,769,985
|
|
|
31,806
|
|
4.66
|
|
|
|
2,351,896
|
|
|
22,323
|
|
3.85
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
499,327
|
|
|
2,126
|
|
1.73
|
|
|
|
523,301
|
|
|
1,972
|
|
1.53
|
|
Tax-exempt
|
|
|
100,368
|
|
|
576
|
|
2.33
|
|
|
|
110,394
|
|
|
646
|
|
2.37
|
|
Total
investments
|
|
|
599,695
|
|
|
2,702
|
|
1.83
|
|
|
|
633,695
|
|
|
2,618
|
|
1.68
|
|
Interest-bearing
deposits
|
|
|
1,218
|
|
|
14
|
|
4.66
|
|
|
|
5,888
|
|
|
2
|
|
0.14
|
|
Federal funds
sold
|
|
|
19,353
|
|
|
243
|
|
5.09
|
|
|
|
162,218
|
|
|
73
|
|
0.18
|
|
Total earning
assets
|
|
|
3,390,251
|
|
|
34,765
|
|
4.16
|
%
|
|
|
3,153,697
|
|
|
25,016
|
|
3.22
|
%
|
Less: allowance for
credit losses
|
|
|
24,557
|
|
|
|
|
|
|
|
|
28,717
|
|
|
|
|
|
|
Other assets
|
|
|
209,151
|
|
|
|
|
|
|
|
|
216,581
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,574,845
|
|
$
|
34,765
|
|
|
|
|
$
|
3,341,561
|
|
$
|
25,016
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
721,864
|
|
$
|
4,588
|
|
2.58
|
%
|
|
$
|
595,991
|
|
$
|
385
|
|
0.26
|
%
|
Interest bearing demand
and NOW accounts
|
|
|
731,398
|
|
|
2,806
|
|
1.56
|
|
|
|
820,016
|
|
|
488
|
|
0.24
|
|
Savings
accounts
|
|
|
512,655
|
|
|
216
|
|
0.17
|
|
|
|
505,816
|
|
|
93
|
|
0.07
|
|
Time deposits less than
$100
|
|
|
192,519
|
|
|
1,181
|
|
2.49
|
|
|
|
127,610
|
|
|
302
|
|
0.96
|
|
Time deposits $100 or
more
|
|
|
179,515
|
|
|
887
|
|
2.00
|
|
|
|
162,196
|
|
|
200
|
|
0.50
|
|
Total interest-bearing
deposits
|
|
|
2,337,951
|
|
|
9,678
|
|
1.68
|
|
|
|
2,211,629
|
|
|
1,468
|
|
0.27
|
|
Short-term
borrowings
|
|
|
91,530
|
|
|
1,086
|
|
4.81
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,482
|
|
|
27
|
|
4.41
|
|
|
|
2,474
|
|
|
28
|
|
4.59
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
443
|
|
5.44
|
|
|
|
33,000
|
|
|
444
|
|
5.38
|
|
Total
borrowings
|
|
|
127,012
|
|
|
1,556
|
|
4.97
|
|
|
|
35,474
|
|
|
472
|
|
5.32
|
|
Total interest-bearing
liabilities
|
|
|
2,464,963
|
|
|
11,234
|
|
1.85
|
|
|
|
2,247,103
|
|
|
1,940
|
|
0.35
|
|
Noninterest-bearing
deposits
|
|
|
744,931
|
|
|
|
|
|
|
|
|
734,348
|
|
|
|
|
|
|
Other
liabilities
|
|
|
38,917
|
|
|
|
|
|
|
|
|
29,816
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
326,034
|
|
|
|
|
|
|
|
|
330,294
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,574,845
|
|
|
11,234
|
|
|
|
|
$
|
3,341,561
|
|
|
1,940
|
|
|
|
Net interest
income/spread
|
|
|
|
|
$
|
23,531
|
|
2.31
|
%
|
|
|
|
|
$
|
23,076
|
|
2.87
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
2.81
|
%
|
|
|
|
|
|
|
|
2.97
|
%
|
Tax-equivalent
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
368
|
|
|
|
|
|
|
|
$
|
309
|
|
|
|
Investments
|
|
|
|
|
|
119
|
|
|
|
|
|
|
|
|
136
|
|
|
|
Total
adjustments
|
|
|
|
|
$
|
487
|
|
|
|
|
|
|
|
$
|
445
|
|
|
|
Peoples Financial
Services Corp.
Details of Net
Interest Income and Net Interest Margin (Unaudited)
(In thousands, fully
taxable equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
$
|
22,009
|
|
$
|
20,853
|
|
Tax-exempt
|
|
|
1,757
|
|
|
1,730
|
|
|
1,694
|
|
|
1,542
|
|
|
1,470
|
|
Total loans,
net
|
|
|
31,806
|
|
|
29,245
|
|
|
26,822
|
|
|
23,551
|
|
|
22,323
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
2,126
|
|
|
2,058
|
|
|
2,096
|
|
|
2,110
|
|
|
1,972
|
|
Tax-exempt
|
|
|
576
|
|
|
658
|
|
|
659
|
|
|
652
|
|
|
646
|
|
Total
investments
|
|
|
2,702
|
|
|
2,716
|
|
|
2,755
|
|
|
2,762
|
|
|
2,618
|
|
Interest on
interest-bearing balances in other banks
|
|
|
14
|
|
|
40
|
|
|
41
|
|
|
18
|
|
|
2
|
|
Federal funds
sold
|
|
|
243
|
|
|
141
|
|
|
106
|
|
|
22
|
|
|
73
|
|
Total interest
income
|
|
|
34,765
|
|
|
32,142
|
|
|
29,724
|
|
|
26,353
|
|
|
25,016
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
9,678
|
|
|
6,251
|
|
|
3,316
|
|
|
1,597
|
|
|
1,468
|
|
Short-term
borrowings
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
|
122
|
|
|
|
|
Long-term
debt
|
|
|
27
|
|
|
9
|
|
|
16
|
|
|
23
|
|
|
28
|
|
Subordinated
debt
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
443
|
|
|
444
|
|
Total interest
expense
|
|
|
11,234
|
|
|
7,228
|
|
|
4,232
|
|
|
2,185
|
|
|
1,940
|
|
Net interest
income
|
|
$
|
23,531
|
|
$
|
24,914
|
|
$
|
25,492
|
|
$
|
24,168
|
|
$
|
23,076
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
4.79
|
%
|
|
4.47
|
%
|
|
4.19
|
%
|
|
3.92
|
%
|
|
3.94
|
%
|
Tax-exempt
|
|
|
3.18
|
%
|
|
3.08
|
%
|
|
2.98
|
%
|
|
2.92
|
%
|
|
2.93
|
%
|
Total loans,
net
|
|
|
4.66
|
%
|
|
4.35
|
%
|
|
4.09
|
%
|
|
3.83
|
%
|
|
3.85
|
%
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1.73
|
%
|
|
1.54
|
%
|
|
1.53
|
%
|
|
1.53
|
%
|
|
1.53
|
%
|
Tax-exempt
|
|
|
2.33
|
%
|
|
2.35
|
%
|
|
2.34
|
%
|
|
2.35
|
%
|
|
2.37
|
%
|
Total
investments
|
|
|
1.83
|
%
|
|
1.68
|
%
|
|
1.67
|
%
|
|
1.67
|
%
|
|
1.68
|
%
|
Interest-bearing
balances with banks
|
|
|
4.66
|
%
|
|
3.41
|
%
|
|
1.77
|
%
|
|
0.68
|
%
|
|
0.14
|
%
|
Federal funds
sold
|
|
|
5.09
|
%
|
|
3.86
|
%
|
|
3.08
|
%
|
|
0.37
|
%
|
|
0.18
|
%
|
Total interest-earning
assets
|
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
|
3.34
|
%
|
|
3.22
|
%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1.68
|
%
|
|
1.08
|
%
|
|
0.59
|
%
|
|
0.30
|
%
|
|
0.27
|
%
|
Short-term
borrowings
|
|
|
4.81
|
%
|
|
4.20
|
%
|
|
2.30
|
%
|
|
1.40
|
%
|
|
|
|
Long-term
debt
|
|
|
4.41
|
%
|
|
4.87
|
%
|
|
4.64
|
%
|
|
4.85
|
%
|
|
4.59
|
%
|
Subordinated
debt
|
|
|
5.44
|
%
|
|
5.33
|
%
|
|
5.33
|
%
|
|
5.38
|
%
|
|
5.38
|
%
|
Total interest-bearing
liabilities
|
|
|
1.85
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
|
0.39
|
%
|
|
0.35
|
%
|
Net interest
spread
|
|
|
2.31
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
|
2.95
|
%
|
|
2.87
|
%
|
Net interest
margin
|
|
|
2.81
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
|
3.06
|
%
|
|
2.97
|
%
|
Peoples Financial
Services Corp.
Consolidated Balance
Sheets (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
At period end
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
31,354
|
|
$
|
37,675
|
|
$
|
35,000
|
|
$
|
39,693
|
|
$
|
35,863
|
|
Interest-bearing
balances in other banks
|
|
|
7,129
|
|
|
193
|
|
|
8,410
|
|
|
8,040
|
|
|
4,440
|
|
Federal funds
sold
|
|
|
102,100
|
|
|
|
|
|
69,600
|
|
|
|
|
|
101,200
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
|
418,125
|
|
|
477,703
|
|
|
477,590
|
|
|
513,911
|
|
|
535,482
|
|
Equity investments
carried at fair value
|
|
|
81
|
|
|
110
|
|
|
103
|
|
|
121
|
|
|
144
|
|
Held to
maturity
|
|
|
89,705
|
|
|
91,179
|
|
|
92,771
|
|
|
94,446
|
|
|
95,829
|
|
Total
investments
|
|
|
507,911
|
|
|
568,992
|
|
|
570,464
|
|
|
608,478
|
|
|
631,455
|
|
Loans held for
sale
|
|
|
|
|
|
|
|
|
653
|
|
|
681
|
|
|
161
|
|
Loans
|
|
|
2,818,043
|
|
|
2,730,116
|
|
|
2,623,706
|
|
|
2,565,579
|
|
|
2,397,681
|
|
Less: allowance for
credit losses
|
|
|
25,444
|
|
|
27,472
|
|
|
29,822
|
|
|
29,374
|
|
|
28,407
|
|
Net loans
|
|
|
2,792,599
|
|
|
2,702,644
|
|
|
2,593,884
|
|
|
2,536,205
|
|
|
2,369,274
|
|
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Premises and equipment,
net
|
|
|
56,561
|
|
|
55,667
|
|
|
54,394
|
|
|
53,094
|
|
|
51,977
|
|
Bank owned life
insurance
|
|
|
48,598
|
|
|
48,344
|
|
|
48,235
|
|
|
47,968
|
|
|
43,828
|
|
Deferred tax
assets
|
|
|
16,015
|
|
|
18,739
|
|
|
20,796
|
|
|
16,269
|
|
|
12,306
|
|
Accrued interest
receivable
|
|
|
11,678
|
|
|
11,715
|
|
|
10,082
|
|
|
9,303
|
|
|
9,221
|
|
Other intangible
assets, net
|
|
|
77
|
|
|
105
|
|
|
179
|
|
|
276
|
|
|
372
|
|
Other assets
|
|
|
41,079
|
|
|
46,071
|
|
|
41,739
|
|
|
38,162
|
|
|
29,334
|
|
Total
assets
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
$
|
3,421,539
|
|
$
|
3,352,801
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
746,089
|
|
$
|
772,765
|
|
$
|
769,935
|
|
$
|
747,558
|
|
$
|
759,986
|
|
Interest-bearing
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
|
|
2,163,725
|
|
|
2,204,878
|
|
Total
deposits
|
|
|
3,235,967
|
|
|
3,046,598
|
|
|
3,124,140
|
|
|
2,911,283
|
|
|
2,964,864
|
|
Short-term
borrowings
|
|
|
17,280
|
|
|
114,930
|
|
|
14,700
|
|
|
129,170
|
|
|
|
|
Long-term
debt
|
|
|
25,000
|
|
|
555
|
|
|
1,104
|
|
|
1,646
|
|
|
2,182
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Accrued interest
payable
|
|
|
2,304
|
|
|
903
|
|
|
1,129
|
|
|
1,269
|
|
|
844
|
|
Other
liabilities
|
|
|
36,286
|
|
|
42,179
|
|
|
40,923
|
|
|
33,274
|
|
|
31,450
|
|
Total
liabilities
|
|
|
3,349,837
|
|
|
3,238,165
|
|
|
3,214,996
|
|
|
3,109,642
|
|
|
3,032,340
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
14,323
|
|
|
14,321
|
|
|
14,330
|
|
|
14,346
|
|
|
14,352
|
|
Capital
surplus
|
|
|
126,231
|
|
|
126,850
|
|
|
126,845
|
|
|
126,986
|
|
|
127,192
|
|
Retained
earnings
|
|
|
237,522
|
|
|
230,515
|
|
|
224,238
|
|
|
217,139
|
|
|
210,584
|
|
Accumulated other
comprehensive loss
|
|
|
(49,442)
|
|
|
(56,336)
|
|
|
(63,603)
|
|
|
(46,574)
|
|
|
(31,667)
|
|
Total stockholders'
equity
|
|
|
328,634
|
|
|
315,350
|
|
|
301,810
|
|
|
311,897
|
|
|
320,461
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
$
|
3,421,539
|
|
$
|
3,352,801
|
|
Peoples Financial
Services Corp.
Loan and Asset
Quality Data (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At period
end
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
375,033
|
|
$
|
377,215
|
|
$
|
371,164
|
|
$
|
371,153
|
|
$
|
370,574
|
Non-taxable
|
|
|
224,343
|
|
|
222,043
|
|
|
224,764
|
|
|
225,656
|
|
|
210,184
|
Total
|
|
|
599,376
|
|
|
599,258
|
|
|
595,928
|
|
|
596,809
|
|
|
580,758
|
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
|
1,782,911
|
|
|
1,709,827
|
|
|
1,620,116
|
|
|
1,569,658
|
|
|
1,436,196
|
Residential
|
|
|
342,459
|
|
|
330,728
|
|
|
326,223
|
|
|
317,672
|
|
|
306,068
|
Total
|
|
|
2,125,370
|
|
|
2,040,555
|
|
|
1,946,339
|
|
|
1,887,330
|
|
|
1,742,264
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
Auto
|
|
|
86,587
|
|
|
76,491
|
|
|
70,006
|
|
|
69,161
|
|
|
64,870
|
Consumer
Other
|
|
|
6,710
|
|
|
13,812
|
|
|
11,433
|
|
|
12,279
|
|
|
9,789
|
Total
|
|
|
93,297
|
|
|
90,303
|
|
|
81,439
|
|
|
81,440
|
|
|
74,659
|
Total
|
|
$
|
2,818,043
|
|
$
|
2,730,116
|
|
$
|
2,623,706
|
|
$
|
2,565,579
|
|
$
|
2,397,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
At quarter end
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans
|
|
$
|
1,798
|
|
$
|
3,386
|
|
$
|
3,938
|
|
$
|
4,387
|
|
$
|
4,573
|
|
Accruing loans past
due 90 days or more
|
|
|
59
|
|
|
748
|
|
|
280
|
|
|
190
|
|
|
103
|
|
Foreclosed
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
1,857
|
|
$
|
4,134
|
|
$
|
4,218
|
|
$
|
4,577
|
|
$
|
4,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
Three months
ended
|
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
Allowance for credit
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
|
27,472
|
|
$
|
29,822
|
|
$
|
29,374
|
|
$
|
28,407
|
|
$
|
28,383
|
|
ASU 2016-13 Transition
Adjustment
|
|
|
(3,283)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted beginning
balance
|
|
|
24,189
|
|
|
29,822
|
|
|
29,374
|
|
|
28,407
|
|
|
28,383
|
|
Charge-offs
|
|
|
75
|
|
|
233
|
|
|
101
|
|
|
98
|
|
|
355
|
|
Recoveries
|
|
|
66
|
|
|
32
|
|
|
99
|
|
|
115
|
|
|
79
|
|
Provision for credit
losses
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
|
950
|
|
|
300
|
|
Ending
balance
|
|
$
|
25,444
|
|
$
|
27,472
|
|
$
|
29,822
|
|
$
|
29,374
|
|
$
|
28,407
|
|
Peoples Financial
Services Corp.
Deposit and
Liquidity Detail (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At period
end
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
775,511
|
|
$
|
685,323
|
|
$
|
706,947
|
|
$
|
592,989
|
|
$
|
605,686
|
Interest bearing demand
and NOW accounts
|
|
|
698,888
|
|
|
772,712
|
|
|
813,743
|
|
|
752,397
|
|
|
797,333
|
Savings
accounts
|
|
|
500,709
|
|
|
523,931
|
|
|
530,124
|
|
|
518,146
|
|
|
515,169
|
Time deposits less than
$250
|
|
|
400,327
|
|
|
199,136
|
|
|
224,517
|
|
|
219,690
|
|
|
200,345
|
Time deposits $250 or
more
|
|
|
114,443
|
|
|
92,731
|
|
|
78,874
|
|
|
80,503
|
|
|
86,345
|
Total interest-bearing
deposits
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
|
|
2,163,725
|
|
|
2,204,878
|
Noninterest-bearing
deposits
|
|
|
746,089
|
|
|
772,765
|
|
|
769,935
|
|
|
747,558
|
|
|
759,986
|
Total
deposits
|
|
$
|
3,235,967
|
|
$
|
3,046,598
|
|
$
|
3,124,140
|
|
$
|
2,911,283
|
|
$
|
2,964,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
At period
end
|
|
|
Amount
|
|
Percent of
Total
|
|
|
Number of
accounts
|
|
Average
Balance
|
Deposit
Detail:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,572,393
|
|
48.6
|
%
|
|
71,100
|
$
|
22
|
Commercial
|
|
|
1,076,060
|
|
33.3
|
|
|
11,659
|
|
93
|
Municipal
|
|
|
402,544
|
|
12.4
|
|
|
1,366
|
|
303
|
Brokered
|
|
|
184,970
|
|
5.7
|
|
|
18
|
|
10,276
|
Total
Deposits
|
|
$
|
3,235,967
|
|
100.0
|
|
|
84,143
|
$
|
10,695
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured
|
|
|
757,373
|
|
23.4
|
%
|
|
|
|
|
Insured
|
|
|
2,478,594
|
|
76.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022
|
At period
end
|
|
|
Amount
|
|
Percent of
Total
|
|
|
Number of
accounts
|
|
Average
Balance
|
Deposit
Detail:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,568,208
|
|
51.5
|
%
|
|
76,972
|
$
|
20
|
Commercial
|
|
|
956,969
|
|
31.4
|
|
|
11,560
|
|
84
|
Municipal
|
|
|
497,807
|
|
16.3
|
|
|
1,383
|
|
371
|
Brokered
|
|
|
23,614
|
|
0.8
|
|
|
11
|
|
2,147
|
Total
Deposits
|
|
$
|
3,046,598
|
|
100.00
|
|
|
89,926
|
$
|
2,623
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured
|
|
|
724,595
|
|
23.8
|
%
|
|
|
|
|
Insured
|
|
|
2,322,003
|
|
76.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Available
|
At March 31,
2023
|
|
|
Total
Available
|
|
|
Outstanding
|
|
|
for Future
Liquidity
|
FHLB
advances
|
|
$
|
1,180,971
|
|
$
|
317,149
|
|
$
|
863,822
|
Federal Reserve
discount window
|
|
|
225,037
|
|
|
|
|
|
225,037
|
Correspondent bank
lines of credit
|
|
|
18,000
|
|
|
|
|
|
18,000
|
Other sources of
liquidity:
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
|
367,847
|
|
|
184,970
|
|
|
182,877
|
Unencumbered
securities
|
|
|
391,116
|
|
|
|
|
|
391,116
|
Total sources of
liquidity
|
|
$
|
2,182,971
|
|
$
|
502,119
|
|
$
|
1,680,852
|
Peoples Financial
Services Corp.
Consolidated Balance
Sheets (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Average quarterly balances
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,546,068
|
|
$
|
2,441,358
|
|
$
|
2,377,803
|
|
$
|
2,254,405
|
|
$
|
2,148,251
|
|
Tax-exempt
|
|
|
223,917
|
|
|
223,293
|
|
|
225,637
|
|
|
211,885
|
|
|
203,645
|
|
Total loans,
net
|
|
|
2,769,985
|
|
|
2,664,651
|
|
|
2,603,440
|
|
|
2,466,290
|
|
|
2,351,896
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
499,327
|
|
|
528,826
|
|
|
544,782
|
|
|
553,078
|
|
|
523,301
|
|
Tax-exempt
|
|
|
100,368
|
|
|
111,206
|
|
|
111,578
|
|
|
111,138
|
|
|
110,394
|
|
Total
investments
|
|
|
599,695
|
|
|
640,032
|
|
|
656,360
|
|
|
664,216
|
|
|
633,695
|
|
Interest-bearing
balances with banks
|
|
|
1,218
|
|
|
4,649
|
|
|
9,180
|
|
|
10,694
|
|
|
5,888
|
|
Federal funds
sold
|
|
|
19,353
|
|
|
14,477
|
|
|
13,665
|
|
|
23,920
|
|
|
162,218
|
|
Total interest-earning
assets
|
|
|
3,390,251
|
|
|
3,323,809
|
|
|
3,282,645
|
|
|
3,165,120
|
|
|
3,153,697
|
|
Other assets
|
|
|
184,594
|
|
|
169,153
|
|
|
180,861
|
|
|
181,900
|
|
|
187,864
|
|
Total
assets
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
$
|
3,341,561
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
$
|
2,337,951
|
|
$
|
2,301,974
|
|
$
|
2,228,829
|
|
$
|
2,167,569
|
|
$
|
2,211,629
|
|
Noninterest-bearing
|
|
|
744,931
|
|
|
758,889
|
|
|
770,833
|
|
|
756,225
|
|
|
734,348
|
|
Total
deposits
|
|
|
3,082,882
|
|
|
3,060,863
|
|
|
2,999,662
|
|
|
2,923,794
|
|
|
2,945,977
|
|
Short-term
borrowings
|
|
|
91,530
|
|
|
49,444
|
|
|
78,922
|
|
|
34,953
|
|
|
|
|
Long-term
debt
|
|
|
2,482
|
|
|
814
|
|
|
1,369
|
|
|
1,901
|
|
|
2,474
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Other
liabilities
|
|
|
38,917
|
|
|
41,436
|
|
|
38,840
|
|
|
33,080
|
|
|
29,816
|
|
Total
liabilities
|
|
|
3,248,811
|
|
|
3,185,557
|
|
|
3,151,793
|
|
|
3,026,728
|
|
|
3,011,267
|
|
Stockholders'
equity
|
|
|
326,034
|
|
|
307,405
|
|
|
311,713
|
|
|
320,292
|
|
|
330,294
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
$
|
3,341,561
|
|
Peoples Financial
Services Corp.
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Mar 31
|
|
Three months ended
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
Core net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss on sale of
available for sale securities
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
|
|
|
Add: Loss on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Average common shares
outstanding - diluted
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
|
7,215,365
|
|
|
7,216,421
|
|
Core net income per
share
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
$
|
1.30
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
328,634
|
|
$
|
315,350
|
|
$
|
301,810
|
|
$
|
311,897
|
|
$
|
320,461
|
|
Less:
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Less: Other intangible
assets, net
|
|
|
77
|
|
|
105
|
|
|
179
|
|
|
276
|
|
|
372
|
|
Total tangible
stockholders' equity
|
|
$
|
265,187
|
|
$
|
251,875
|
|
$
|
238,261
|
|
$
|
248,251
|
|
$
|
256,719
|
|
Common shares
outstanding
|
|
|
7,150,757
|
|
|
7,158,018
|
|
|
7,162,750
|
|
|
7,170,661
|
|
|
7,179,037
|
|
Tangible book value per
share
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
$
|
34.62
|
|
$
|
35.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss on sale of
available for sale securities
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
|
|
|
Add: Loss on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Average stockholders'
equity
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
$
|
330,294
|
|
Core return on average
stockholders' equity
|
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
|
11.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Average stockholders'
equity
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
$
|
330,294
|
|
Less: average
intangibles
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
|
63,694
|
|
|
63,790
|
|
Average tangible
stockholders' equity
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
$
|
256,598
|
|
$
|
266,504
|
|
Return on average
tangible stockholders' equity
|
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
14.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average tangible stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss on sale of
available for sale securities
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
|
|
|
Add: Loss on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Average stockholders'
equity
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
$
|
330,294
|
|
Less: average
intangibles
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
|
63,694
|
|
|
63,790
|
|
Average tangible
stockholders' equity
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
$
|
256,598
|
|
$
|
266,504
|
|
Core return on average
tangible stockholders' equity
|
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
14.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss on sale of
available for sale securities
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
|
|
|
Add: Loss on sale of
available for sale securities tax adjustment
|
|
|
17
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
Core net
income
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
$
|
9,630
|
|
Average
assets
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
$
|
3,341,561
|
|
Core return on average
assets
|
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
|
1.17
|
%
|
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 months ended
March 31, 2023 and 2022:
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
2023
|
|
2022
|
|
Interest income
(GAAP)
|
|
$
|
34,278
|
|
$
|
24,571
|
|
Adjustment to
FTE
|
|
|
487
|
|
|
445
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
34,765
|
|
|
25,016
|
|
Interest
expense
|
|
|
11,234
|
|
|
1,940
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
23,531
|
|
$
|
23,076
|
|
|
|
|
|
|
|
|
|
The efficiency ratio is noninterest expenses, less
amortization of intangible assets, 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 months ended March 31,
2023 and 2022:
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
2023
|
|
2022
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
16,486
|
|
$
|
14,289
|
|
Less: amortization of
intangible assets expense
|
|
|
29
|
|
|
96
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
16,457
|
|
|
14,193
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
23,044
|
|
|
22,631
|
|
Plus: taxable
equivalent adjustment
|
|
|
487
|
|
|
445
|
|
Noninterest income
(GAAP)
|
|
|
3,674
|
|
|
3,421
|
|
Less: Net gains
(losses) on equity securities
|
|
|
(29)
|
|
|
4
|
|
Less: Gain on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
27,153
|
|
$
|
26,493
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
60.61
|
%
|
|
53.57
|
%
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/peoples-financial-services-corp-reports-unaudited-first-quarter-2023-earnings-301809114.html
SOURCE Peoples Financial Services Corp.