SCRANTON, Pa., July 25,
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 six months ended June 30, 2023.
Peoples reported net income of $9.4
million, or $1.31 per diluted
share for the three months ended June 30,
2023, a 0.8% increase when compared to $9.4 million, or $1.30 per share for the comparable period of
2022. Quarterly net income included lower net interest income of
$1.6 million due to higher funding
costs, reduced noninterest income of $0.3
million and higher operating expenses of $1.1 million, offset by a lower provision for
credit losses of $3.2 million.
The $2.2 million credit to the
provision for credit losses in the current period included 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 were partially offset by banking industry concerns
which resulted in lower expected credit losses. The year ago
period included a provision for credit losses of $1.0 million based on our legacy allowance for
credit losses methodology and then current conditions.
For the six months ended June 30,
2023, net income was $17.0
million, or $2.37 per diluted
share, a 10.4% decrease when compared to $19.0 million, or $2.63 per diluted share for the comparable period
of 2022. Net interest income for the current period decreased
$1.1 million when compared to the six
months ended June 30, 2022 as higher
interest income due to increased rates was more than offset by
increased funding costs. Lower net interest income combined
with higher operating expenses of $3.4
million were partially offset by a $2.2 million decrease to the provision for credit
losses.
FINANCIAL HIGHLIGHTS
- Net income for the six months ended June
30, 2023 was $17.0 million or
$2.37 per diluted share.
- Dividends paid during the first six months ended June 30, 2023 totaled $0.82 per share representing a 5.1% increase from
the comparable period in 2022.
- Net loan growth for the six months ended June 30, 2023 was $113.1
million or 8.4% annualized and consisted primarily of
commercial real estate loans.
- Total deposits grew $182.9
million to $3.2 billion during
the first six months of 2023. Core deposits, excluding
brokered deposits, declined $65.1
million or 2.2%.
- At June 30, 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 46.2% of total assets and 52.6% of total deposits.
- At June 30, 2023, total estimated
uninsured deposits, were approximately $820.6 million, or approximately 25.4% of total
deposits; as compared to approximately $1.1
billion, or 36.9% of total deposits at December 31, 2022. Included in the
uninsured total at June 30, 2023 is
$344.6 million of municipal deposits
collateralized by letters of credit issued by the Federal Home Loan
Bank of Pittsburgh and pledged
investment securities, and $1.7
million of affiliate company deposits.
- 25,555 shares were purchased during the three months ended
June 30, 2023 at an average price per
share of $41.89 and retired under the
Company's common stock repurchase plan which was restarted in the
current three month period.
- Tangible book value increased 7.0% to $37.64 at June 30,
2023 from $35.19 at
December 31, 2022.
- Asset quality remained strong as nonperforming assets as a
percentage of total assets at June 30,
2023 was 0.06%, compared to 0.12% and 0.13% at December 31, 2022 and June
30, 2022.
NOTABLES
- On July 10, 2023, Peoples
Security Bank and Trust Company completed the relocation of its
North Allegheny, Pennsylvania
branch to a newly constructed full-service community office serving
the Greater Pittsburgh Market.
- On July 17, 2023, Peoples
Security Bank and Trust Company relocated its King of Prussia, Pennsylvania branch to a
larger, more visible full-service location on DeKalb Pike to
better serve the Greater Delaware Valley market.
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 ten rate increases, totaling 500 basis points. There
were seven rate hikes in 2022 and three additional increases in
2023 before the FOMC paused at its June
2023 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 June 30,
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 local competition for deposits and the cost
of alternative funding.
Calculated on a fully taxable equivalent basis, a non-GAAP
measure[1], our net interest margin for the three months ended
June 30, 2023 was 2.61%, a decrease
of 21 basis points when compared to the 2.82% for the three months
ended March 31, 2023 and 45 basis
points when compared to 3.06% 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 15
basis points to 4.31% during the three months ended June 30, 2023 from 4.16% during the three months
ended March 31, 2023, and increased
97 basis points when compared to 3.34% for the three months ended
June 30, 2022. Our cost of
funds, which represents our average rate paid on total
interest-bearing liabilities, increased 45 basis points to 2.29%
for the three months ended June 30,
2023 when compared to 1.84% during the three months ended
March 31, 2023 and increased 190
basis points compared to 0.39% in the prior year period. We
continued to increase interest rates paid on deposits during the
quarter to attract new deposits and retain current balances.
Our cost of interest-bearing deposits increased 54 basis points
during the current three month period to 2.21% from 1.67% in the
prior three month period ended March
31, 2023. Our cost of total deposits for the three
months ended June 30, 2023 increased
46 basis points to 1.72% from 1.26% during the three months ended
March 31, 2023.
On a trailing twelve month basis, our average cost of
interest-bearing deposits increased 191 basis points, from 0.30% at
June 30, 2022 to 2.21% at
June 30, 2023, representing a beta on
interest-bearing deposits of approximately 54.6%. Our overall cost
of total deposits increased 150 basis points from 0.22% at
June 30, 2022 to 1.72%, representing
a beta on total deposits of approximately 42.9%.
Second Quarter 2023 Results – Comparison to Prior-Year
Quarter
Tax-equivalent net interest income, a non-GAAP
measure1, for the three months ended June 30, decreased $1.6
million or 6.6% to $22.6
million in 2023 from $24.2
million in 2022. The decrease in tax equivalent net interest
income was due to higher tax-equivalent interest income of
$10.9 million less elevated interest
expense of $12.5 million.
The higher interest income was the result of an increase in
yield and average balance of earning assets. Average earning
assets were $301.8 million higher in
the three month period ended June 30,
2023 when compared to the year ago period. The
tax-equivalent yield on the loan portfolio was 4.79% and 3.83% for
the three months ended June 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 $2.8 billion for the three months ended
June 30, 2023 and $2.5 billion for the comparable period in 2022.
For the three months ended June 30,
the tax-equivalent yield on total investments increased to 1.73% in
2023 from 1.67% in 2022. Average investments totaled $558.1 million in the three months ended
June 30, 2023 and $664.2 million in the three months ended
June 30, 2022.
The increased interest expense in the three months ended
June 30, 2023 was due primarily to
higher rates on consumer, business and municipal deposits driven by
the higher interest rate environment. In addition, as part of
the Company's strategy to improve on-balance sheet liquidity,
$92.2 million of higher-cost brokered
deposits were added. The Company's total cost of
deposits increased during the three months ended June 30, 2023 compared to the year ago period by
150 basis points to 1.72%, and the cost of interest-bearing
deposits increased 191 basis points to 2.21% from 0.30% in the
previous year three month period. Short-term borrowings averaged
$16.9 million in the current period
and added $0.2 million of interest
expense at an average cost of 5.07% compared to $35.0 million in short-term borrowings in the
year ago period at an average cost of 1.40%.
Average interest-bearing liabilities increased $331.1 million for the three months ended
June 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 $44.5
million or 5.9% from the prior period and now represent
22.2% of total deposits.
For the three months ended June 30,
2023, a reversal of $2.2
million was posted to the provision for credit losses
compared to a provision of $1.0
million in the year ago period. The current period
provision reversal 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 were offset by
banking industry concerns which resulted in a lower expected credit
losses. The year ago period included a provision for credit losses
of $1.0 million based on our legacy
allowance for credit losses methodology and then current
conditions.
Noninterest income for the three months ended June 30, 2023 was $3.6
million, a $0.3 million
decrease from the prior year's quarter. Higher retail and
commercial account service charges and a higher FHLB dividend, were
offset by lower merchant services and swap related revenue.
Noninterest expense increased $1.1
million or 7.2% to $16.6
million for the three months ended June 30, 2023, from $15.5
million for the three months ended June 30, 2022. Salaries and employee benefits
increased $0.6 million or 8.0% due to
annual merit increases; new hires; lower deferred loan origination
costs; and higher employee benefit costs. Occupancy and
equipment expenses were higher by $0.2
million in the current period due to the increase in
transactional costs relating to our expansion market volume. Other
expenses increased $0.3 million due
primarily to higher FDIC assessments and loan account processing
fees.
The provision for income tax expense was $1.8 million for the three months ended
June 30, 2023 and June 30, 2022 with an effective tax rate of 16.1%
for each quarter.
Six-Month Results – Comparison to Prior Year First Six
Months
Our net interest margin, a non-GAAP measure1, for the
six months ended June 30, 2023 was
2.72%, a decrease of 29 basis points over the prior year's period
of 3.01%. Tax-equivalent net interest income, a non-GAAP
measure1 for the six months ended June 30, decreased $1.1
million, or 2.3%, to $46.2
million in 2023 from $47.2
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 SBA PPP
interest and fees, compared to the $1.5
million in the year ago period. Investments decreased
$70.3 million compared to
June 30, 2022, as the Company engaged
in investment sales to, in part, fund loan growth and repay
short-term borrowings. The yield on earning assets was 4.23%
for the first half of 2023 compared to 3.28% for the six month
period ended June 30, 2022. The
cost of interest bearing liabilities during the six month period
ended June 30, 2023 increased 170
basis points to 2.07% from 0.37% for the six months ended
June 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 six months of 2023.
For the six months ended June 30,
2023, a credit to the provision for credit losses of
$0.9 million was posted due to
various factors including updated economic assumptions as well as
changes in qualitative factors, portfolio composition and asset
quality.
Noninterest income was $7.2
million for the six months ended June
30, 2023 and $7.3 million for
the comparable period ended June 30,
2022. During the period, service charges, fees and
commissions increased $0.4 million,
due in part to a $0.3 million
increase in consumer and commercial deposit service charges, higher
revenue related to debit card activity and increased dividends on
FHLB stock. Merchant services income decreased $0.3 million during the six months ended
June 30, 2023 compared to the prior
year on lower transaction volume incentives. Interest rate
swap revenue decreased $0.4 million
on lower origination volume and market value adjustments.
Noninterest expense for the six months ended June 30, 2023, was $33.2
million, an increase of $3.4
million from $29.8 million for
the six months ended June 30,
2022. The increase was due primarily to $1.7 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 $0.6
million due to lower loan origination volume compared
to the year ago period. Occupancy and equipment expenses were
higher by $0.3 million in the current
period due to transaction cost increases. The year ago period
included $0.5 million of gains from
the sale of other real estate owned, which is included in
noninterest expense, with no comparable transaction in the current
period. Other expenses including professional fees, loan
account processing fees, Pennsylvania shares tax and FDIC assessments
accounted for an increase of $1.0
million.
The provision for income taxes for the six months ended
June 30, 2023 decreased $0.4 million and the effective tax rate was 15.8%
as compared to 16.0% in the prior period.
BALANCE SHEET REVIEW
At June 30, 2023, total assets,
loans and deposits were $3.7 billion,
$2.8 billion and $3.2 billion, respectively. During the six month
period, investment sales, deposit growth and FHLB term borrowings
were utilized to fund loan growth and repay short-term
borrowings.
Loan growth for the six months ended June
30, 2023 was $113.1 million or
8.4% annualized. Growth slowed during the three months ended
June 30, 2023 totaling $25.3 million as compared to loan growth of
$88.0 million during the first three
months of 2023. 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 June 30, 2023,
gross PPP loans remaining totaled $22.1
million and net deferred PPP fees remaining totaled
$0.2 million.
Total investments were $484.1
million at June 30, 2023,
compared to $569.0 million at
December 31, 2022. At
June 30, 2023, the available-for-sale
securities totaled $395.9 million and
the held-to-maturity securities totaled $88.2 million. The unrealized losses on the
held-to-maturity portfolio totaled $14.2
million and $14.6 million at
June 30, 2023 and December 31, 2022, respectively. During the
six month period ended June 30, 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 $182.9
million during the six months ending June 30, 2023. Noninterest-bearing deposits
decreased $59.4 million and
interest-bearing deposits increased $242.3
million during the six months ended June 30, 2023. The increase in deposits was
due to a $248.0 million net increase
in brokered deposits and a $25.0
million increase in retail and commercial accounts partially
offset by a $90.2 million seasonal
decrease in municipal deposits. During the six months ended
June 30, 2023, the Company added
$259.0 million of longer-term
callable brokered CDs 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 43.9% retail accounts, 33.4%
commercial accounts, 14.4% municipal relationships and 8.4%
brokered deposits at June 30, 2023.
At June 30, 2023, total estimated
uninsured deposits, were approximately $820.6 million, or approximately 25.4% 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
June 30, 2023 is $344.6 million of municipal deposits
collateralized by letters of credit issued by the Federal Home Loan
Bank of Pittsburgh and pledged
investment securities, and $1.7
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 six months ended June 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 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
$384.8 million of borrowing capacity
based on the par value of unencumbered securities available as
collateral under this line. At June 30,
2023, we had $1.7 billion in
additional liquidity representing 46.2% of total assets, 52.6% of
total deposits and 300.4% of uninsured deposits. For
additional information on our deposit portfolio and additional
sources of liquidity see the tables on page 15.
The Company maintained its well capitalized position at
June 30, 2023. Stockholders'
equity equaled $331.8 million or
$46.53 per share at June 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 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 June
30, 2023 and December 31, 2022
was $47.6 million and $52.0 million, respectively.
Tangible stockholders' equity, a non-GAAP measure1,
increased to $37.64 per share at
June 30, 2023, from $35.19 per share at December 31, 2022. Dividends declared for
the six months ended June 30, 2023
amounted to $0.82 per share, a 5.1%
increase from the 2022 period, representing a dividend payout ratio
of 34.6% of net income. During the six months ended
June 30, 2023, 42,128 shares were
purchased and retired under the Company's common stock repurchase
plan at an average price per share of $45.00. The Company restarted the
repurchase plan in the second quarter of 2023, which had been
temporarily suspended in response to market volatility and economic
uncertainty.
ASSET QUALITY REVIEW
Asset quality metrics remained strong and continued to
improve. Nonperforming assets were $2.1 million or 0.07% of loans, net and
foreclosed assets at June 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 0.06% at June 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 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 due in part to a $0.5 million
principal reduction on a commercial real estate loan. At
June 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 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.
In addition to the transition adjustment during the six month
period ended June 30, 2023, a
$0.9 million credit to loan losses
and net charge-offs of $34 thousand
were recorded. The allowance for credit losses equaled $23.2 million or 0.82% of loans, net at
June 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 six months ended June
30, 2023 were minimal at $34
thousand, compared to $0.3
million 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 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;
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
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.
__________________
|
1 See
reconciliation of non-GAAP financial measures on p.18-19
|
[TABULAR MATERIAL FOLLOWS]
Summary
Data Peoples Financial Services
Corp. Five Quarter Trend (Unaudited) (In
thousands, except share and per share data)
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Key performance
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1.31
|
|
$
|
1.05
|
|
$
|
1.27
|
|
$
|
1.38
|
|
$
|
1.30
|
|
Core net income
(1)
|
|
$
|
1.31
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
$
|
1.30
|
|
Cash dividends
declared
|
|
$
|
0.41
|
|
$
|
0.41
|
|
$
|
0.40
|
|
$
|
0.40
|
|
$
|
0.39
|
|
Book value
|
|
$
|
46.53
|
|
$
|
45.96
|
|
$
|
44.06
|
|
$
|
42.14
|
|
$
|
43.50
|
|
Tangible book value
(1)
|
|
$
|
37.64
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
$
|
34.62
|
|
Market
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
44.60
|
|
$
|
53.48
|
|
$
|
57.60
|
|
$
|
56.09
|
|
$
|
56.99
|
|
Low
|
|
$
|
30.60
|
|
$
|
42.52
|
|
$
|
47.00
|
|
$
|
46.84
|
|
$
|
47.41
|
|
Closing
|
|
$
|
43.79
|
|
$
|
43.35
|
|
$
|
51.84
|
|
$
|
46.84
|
|
$
|
55.84
|
|
Market
capitalization
|
|
$
|
312,241
|
|
$
|
309,985
|
|
$
|
371,072
|
|
$
|
335,503
|
|
$
|
400,410
|
|
Common shares
outstanding
|
|
|
7,130,409
|
|
|
7,150,757
|
|
|
7,158,018
|
|
|
7,162,750
|
|
|
7,170,661
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
|
|
11.42
|
%
|
|
9.43
|
%
|
|
11.79
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
Core return on average
stockholders'
equity (1)
|
|
|
11.42
|
%
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
Return on average
tangible
stockholders' equity
|
|
|
14.12
|
%
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
Core return on average
tangible
stockholders' equity (1)
|
|
|
14.12
|
%
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
Return on average
assets
|
|
|
1.04
|
%
|
|
0.86
|
%
|
|
1.04
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
Core return on average
assets (1)
|
|
|
1.04
|
%
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
Stockholders' equity to
total assets
|
|
|
9.01
|
%
|
|
8.93
|
%
|
|
8.87
|
%
|
|
8.58
|
%
|
|
9.12
|
%
|
Efficiency ratio
(1)(2)
|
|
|
63.51
|
%
|
|
60.61
|
%
|
|
60.07
|
%
|
|
54.95
|
%
|
|
54.89
|
%
|
Nonperforming assets to
loans, net, and
foreclosed assets
|
|
|
0.07
|
%
|
|
0.07
|
%
|
|
0.15
|
%
|
|
0.16
|
%
|
|
0.18
|
%
|
Nonperforming assets to
total assets
|
|
|
0.06
|
%
|
|
0.05
|
%
|
|
0.12
|
%
|
|
0.12
|
%
|
|
0.13
|
%
|
Net charge-offs to
average loans, net
|
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.03
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
Allowance for credit
losses to loans, net
|
|
|
0.82
|
%
|
|
0.90
|
%
|
|
1.01
|
%
|
|
1.14
|
%
|
|
1.14
|
%
|
Interest-bearing assets
yield (FTE) (3)
|
|
|
4.31
|
%
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
|
3.34
|
%
|
Cost of
funds
|
|
|
2.29
|
%
|
|
1.84
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
|
0.39
|
%
|
Net interest spread
(FTE) (3)
|
|
|
2.02
|
%
|
|
2.32
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
|
2.95
|
%
|
Net interest margin
(FTE) (3)
|
|
|
2.61
|
%
|
|
2.82
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
|
3.06
|
%
|
|
|
(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)
|
|
|
|
June 30
|
|
June 30
|
|
Six months
ended
|
|
2023
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
62,188
|
|
$
|
42,862
|
|
Tax-exempt
|
|
|
2,794
|
|
|
2,379
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
Taxable
|
|
|
4,053
|
|
|
4,080
|
|
Tax-exempt
|
|
|
835
|
|
|
1,025
|
|
Dividends
|
|
|
4
|
|
|
2
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
99
|
|
|
20
|
|
Interest on federal
funds sold
|
|
|
1,041
|
|
|
95
|
|
Total interest
income
|
|
|
71,014
|
|
|
50,463
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
23,324
|
|
|
3,065
|
|
Interest on short-term
borrowings
|
|
|
1,299
|
|
|
122
|
|
Interest on long-term
debt
|
|
|
296
|
|
|
51
|
|
Interest on
subordinated debt
|
|
|
887
|
|
|
887
|
|
Total interest
expense
|
|
|
25,806
|
|
|
4,125
|
|
Net interest
income
|
|
|
45,208
|
|
|
46,338
|
|
(Credit to) provision
for credit losses
|
|
|
(937)
|
|
|
1,250
|
|
Net interest income
after (credit to) provision for credit losses
|
|
|
46,145
|
|
|
45,088
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
3,947
|
|
|
3,453
|
|
Merchant services
income
|
|
|
372
|
|
|
676
|
|
Commissions and fees on
fiduciary activities
|
|
|
1,085
|
|
|
1,106
|
|
Wealth management
income
|
|
|
784
|
|
|
725
|
|
Mortgage banking
income
|
|
|
208
|
|
|
272
|
|
Increase in cash
surrender value of life insurance
|
|
|
520
|
|
|
462
|
|
Interest rate swap
revenue
|
|
|
246
|
|
|
627
|
|
Net (losses) on equity
investment securities
|
|
|
(17)
|
|
|
(19)
|
|
Net gains on sale of
investment securities available for sale
|
|
|
81
|
|
|
|
|
Total noninterest
income
|
|
|
7,226
|
|
|
7,302
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
17,562
|
|
|
15,891
|
|
Net occupancy and
equipment expense
|
|
|
8,380
|
|
|
8,036
|
|
Amortization of
intangible assets
|
|
|
57
|
|
|
193
|
|
Net gains on sale of
other real estate owned
|
|
|
|
|
|
(478)
|
|
Other
expenses
|
|
|
7,169
|
|
|
6,140
|
|
Total noninterest
expense
|
|
|
33,168
|
|
|
29,782
|
|
Income before income
taxes
|
|
|
20,203
|
|
|
22,608
|
|
Provision for income
tax expense
|
|
|
3,199
|
|
|
3,625
|
|
Net income
|
|
$
|
17,004
|
|
$
|
18,983
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on investment securities available for sale
|
|
$
|
5,688
|
|
$
|
(51,281)
|
|
Reclassification
adjustment for gains on available for sale securities included in
net income
|
|
|
(81)
|
|
|
|
|
Change in derivative
fair value
|
|
|
79
|
|
|
(694)
|
|
Income tax expense
(benefit) related to other comprehensive income (loss)
|
|
|
1,223
|
|
|
(10,915)
|
|
Other comprehensive
income (loss), net of income tax expense (benefit)
|
|
|
4,463
|
|
|
(41,060)
|
|
Comprehensive income
(loss)
|
|
$
|
21,467
|
|
$
|
(22,077)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
2.38
|
|
$
|
2.65
|
|
Net income -
diluted
|
|
|
2.37
|
|
|
2.63
|
|
Cash dividends
declared
|
|
|
0.82
|
|
|
0.78
|
|
Average common shares
outstanding - basic
|
|
|
7,151,732
|
|
|
7,172,181
|
|
Average common shares
outstanding - diluted
|
|
|
7,188,384
|
|
|
7,215,890
|
|
Peoples Financial
Services Corp. Consolidated Statements of Income
(Unaudited) (In thousands, except per share
data)
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
32,139
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
$
|
22,009
|
|
Tax-exempt
|
|
|
1,405
|
|
|
1,389
|
|
|
1,367
|
|
|
1,338
|
|
|
1,218
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,929
|
|
|
2,124
|
|
|
2,058
|
|
|
2,096
|
|
|
2,108
|
|
Tax-exempt
|
|
|
378
|
|
|
457
|
|
|
520
|
|
|
521
|
|
|
515
|
|
Dividends
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
Interest on
interest-bearing deposits in other banks
|
|
|
85
|
|
|
14
|
|
|
40
|
|
|
41
|
|
|
18
|
|
Interest on federal
funds sold
|
|
|
798
|
|
|
243
|
|
|
141
|
|
|
106
|
|
|
22
|
|
Total interest
income
|
|
|
36,736
|
|
|
34,278
|
|
|
31,641
|
|
|
29,230
|
|
|
25,892
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
13,714
|
|
|
9,610
|
|
|
6,251
|
|
|
3,316
|
|
|
1,597
|
|
Interest on short-term
borrowings
|
|
|
213
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
|
122
|
|
Interest on long-term
debt
|
|
|
269
|
|
|
27
|
|
|
9
|
|
|
16
|
|
|
23
|
|
Interest on
subordinated debt
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
443
|
|
Total interest
expense
|
|
|
14,640
|
|
|
11,166
|
|
|
7,228
|
|
|
4,232
|
|
|
2,185
|
|
Net interest
income
|
|
|
22,096
|
|
|
23,112
|
|
|
24,413
|
|
|
24,998
|
|
|
23,707
|
|
(Credit to) provision
for credit losses
|
|
|
(2,201)
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
|
950
|
|
Net interest income
after (credit to) provision for credit
losses
|
|
|
24,297
|
|
|
21,848
|
|
|
26,562
|
|
|
24,548
|
|
|
22,757
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, fees,
commissions and other
|
|
|
1,982
|
|
|
1,965
|
|
|
1,909
|
|
|
1,714
|
|
|
1,761
|
|
Merchant services
income
|
|
|
254
|
|
|
118
|
|
|
131
|
|
|
157
|
|
|
562
|
|
Commissions and fees on
fiduciary activities
|
|
|
528
|
|
|
557
|
|
|
532
|
|
|
591
|
|
|
551
|
|
Wealth management
income
|
|
|
386
|
|
|
398
|
|
|
366
|
|
|
339
|
|
|
374
|
|
Mortgage banking
income
|
|
|
105
|
|
|
103
|
|
|
104
|
|
|
135
|
|
|
128
|
|
Increase in cash
surrender value of life insurance
|
|
|
262
|
|
|
258
|
|
|
289
|
|
|
269
|
|
|
244
|
|
Interest rate swap
revenue
|
|
|
23
|
|
|
223
|
|
|
(135)
|
|
|
130
|
|
|
284
|
|
Net gains (losses) on
investment equity securities
|
|
|
12
|
|
|
(29)
|
|
|
6
|
|
|
(18)
|
|
|
(23)
|
|
Net gains (losses) on
sale of investment securities available for sale
|
|
|
|
|
|
81
|
|
|
(1,976)
|
|
|
|
|
|
|
|
Total noninterest
income
|
|
|
3,552
|
|
|
3,674
|
|
|
1,226
|
|
|
3,317
|
|
|
3,881
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
|
|
8,482
|
|
|
9,080
|
|
|
9,188
|
|
|
8,474
|
|
|
7,851
|
|
Net occupancy and
equipment expense
|
|
|
4,277
|
|
|
4,103
|
|
|
5,045
|
|
|
4,025
|
|
|
4,083
|
|
Amortization of
intangible assets
|
|
|
28
|
|
|
29
|
|
|
74
|
|
|
96
|
|
|
97
|
|
Net gains on sale of
other real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
Other
expenses
|
|
|
3,827
|
|
|
3,342
|
|
|
2,653
|
|
|
3,340
|
|
|
3,482
|
|
Total noninterest
expense
|
|
|
16,614
|
|
|
16,554
|
|
|
16,960
|
|
|
15,935
|
|
|
15,493
|
|
Income before income
taxes
|
|
|
11,235
|
|
|
8,968
|
|
|
10,828
|
|
|
11,930
|
|
|
11,145
|
|
Income tax
expense
|
|
|
1,810
|
|
|
1,389
|
|
|
1,689
|
|
|
1,962
|
|
|
1,792
|
|
Net income
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain
on investment securities available for sale
|
|
$
|
(5,148)
|
|
$
|
10,836
|
|
$
|
6,356
|
|
$
|
(21,510)
|
|
$
|
(18,669)
|
|
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
|
|
|
2,049
|
|
|
(1,970)
|
|
|
12
|
|
|
(46)
|
|
|
(201)
|
|
Income tax (benefit)
expense related to other comprehensive (loss)
income
|
|
|
(668)
|
|
|
1,891
|
|
|
1,447
|
|
|
(4,527)
|
|
|
(3,963)
|
|
Other comprehensive
(loss) income, net of income tax
(benefit) expense
|
|
|
(2,431)
|
|
|
6,894
|
|
|
7,267
|
|
|
(17,029)
|
|
|
(14,907)
|
|
Comprehensive (loss)
income
|
|
$
|
6,994
|
|
$
|
14,473
|
|
$
|
16,406
|
|
$
|
(7,061)
|
|
$
|
(5,554)
|
|
Share and per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income -
basic
|
|
$
|
1.32
|
|
$
|
1.06
|
|
$
|
1.28
|
|
$
|
1.39
|
|
$
|
1.30
|
|
Net income -
diluted
|
|
|
1.31
|
|
|
1.05
|
|
|
1.27
|
|
|
1.38
|
|
|
1.30
|
|
Cash dividends
declared
|
|
|
0.41
|
|
|
0.41
|
|
|
0.40
|
|
|
0.40
|
|
|
0.39
|
|
Average common shares
outstanding - basic
|
|
|
7,145,975
|
|
|
7,157,553
|
|
|
7,158,329
|
|
|
7,169,809
|
|
|
7,171,909
|
|
Average common shares
outstanding - diluted
|
|
|
7,177,915
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
|
7,215,365
|
|
Peoples Financial
Services Corp. Net Interest Margin
(Unaudited) (In thousands, fully taxable equivalent
basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,615,881
|
|
$
|
32,139
|
|
4.93
|
%
|
|
$
|
2,254,405
|
|
$
|
22,009
|
|
3.92
|
%
|
Tax-exempt
|
|
|
224,960
|
|
|
1,780
|
|
3.17
|
|
|
|
211,885
|
|
|
1,542
|
|
2.92
|
|
Total loans
|
|
|
2,840,841
|
|
|
33,919
|
|
4.79
|
|
|
|
2,466,290
|
|
|
23,551
|
|
3.83
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
469,712
|
|
|
1,931
|
|
1.65
|
|
|
|
553,078
|
|
|
2,110
|
|
1.53
|
|
Tax-exempt
|
|
|
88,371
|
|
|
481
|
|
2.18
|
|
|
|
111,138
|
|
|
652
|
|
2.35
|
|
Total
investments
|
|
|
558,083
|
|
|
2,412
|
|
1.73
|
|
|
|
664,216
|
|
|
2,762
|
|
1.67
|
|
Interest-bearing
deposits
|
|
|
6,839
|
|
|
85
|
|
4.99
|
|
|
|
10,694
|
|
|
18
|
|
0.68
|
|
Federal funds
sold
|
|
|
61,093
|
|
|
798
|
|
5.24
|
|
|
|
23,920
|
|
|
22
|
|
0.37
|
|
Total earning
assets
|
|
|
3,466,856
|
|
|
37,214
|
|
4.31
|
%
|
|
|
3,165,120
|
|
|
26,353
|
|
3.34
|
%
|
Less: allowance for
credit losses
|
|
|
25,895
|
|
|
|
|
|
|
|
|
28,839
|
|
|
|
|
|
|
Other assets
|
|
|
209,915
|
|
|
|
|
|
|
|
|
210,739
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,650,876
|
|
$
|
37,214
|
|
|
|
|
$
|
3,347,020
|
|
$
|
26,353
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
664,451
|
|
$
|
4,958
|
|
2.99
|
%
|
|
$
|
588,222
|
|
$
|
448
|
|
0.31
|
%
|
Interest bearing demand
and NOW
accounts
|
|
|
771,690
|
|
|
3,537
|
|
1.84
|
|
|
|
782,501
|
|
|
577
|
|
0.30
|
|
Savings
accounts
|
|
|
483,385
|
|
|
239
|
|
0.20
|
|
|
|
518,847
|
|
|
99
|
|
0.08
|
|
Time deposits less than
$100
|
|
|
375,799
|
|
|
3,620
|
|
3.86
|
|
|
|
125,653
|
|
|
306
|
|
0.98
|
|
Time deposits $100 or
more
|
|
|
198,355
|
|
|
1,360
|
|
2.75
|
|
|
|
152,346
|
|
|
167
|
|
0.44
|
|
Total
interest-bearing
deposits
|
|
|
2,493,680
|
|
|
13,714
|
|
2.21
|
|
|
|
2,167,569
|
|
|
1,597
|
|
0.30
|
|
Short-term
borrowings
|
|
|
16,854
|
|
|
213
|
|
5.07
|
|
|
|
34,953
|
|
|
122
|
|
1.40
|
|
Long-term
debt
|
|
|
25,000
|
|
|
269
|
|
4.32
|
|
|
|
1,901
|
|
|
23
|
|
4.85
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
444
|
|
5.40
|
|
|
|
33,000
|
|
|
443
|
|
5.38
|
|
Total
borrowings
|
|
|
74,854
|
|
|
926
|
|
4.96
|
|
|
|
69,854
|
|
|
588
|
|
3.33
|
|
Total
interest-bearing
liabilities
|
|
|
2,568,534
|
|
|
14,640
|
|
2.29
|
|
|
|
2,237,423
|
|
|
2,185
|
|
0.39
|
|
Noninterest-bearing
deposits
|
|
|
711,729
|
|
|
|
|
|
|
|
|
756,226
|
|
|
|
|
|
|
Other
liabilities
|
|
|
39,494
|
|
|
|
|
|
|
|
|
33,079
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
331,119
|
|
|
|
|
|
|
|
|
320,292
|
|
|
|
|
|
|
Total liabilities
and
stockholders' equity
|
|
$
|
3,650,876
|
|
|
|
|
|
|
|
$
|
3,347,020
|
|
|
|
|
|
|
Net interest
income/spread
|
|
|
|
|
$
|
22,574
|
|
2.02
|
%
|
|
|
|
|
$
|
24,168
|
|
2.95
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
2.61
|
%
|
|
|
|
|
|
|
|
3.06
|
%
|
Tax-equivalent
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
375
|
|
|
|
|
|
|
|
$
|
324
|
|
|
|
Investments
|
|
|
|
|
|
103
|
|
|
|
|
|
|
|
|
137
|
|
|
|
Total
adjustments
|
|
|
|
|
$
|
478
|
|
|
|
|
|
|
|
$
|
461
|
|
|
|
Peoples Financial
Services Corp. Net Interest Margin
(Unaudited) (In thousands, fully taxable equivalent
basis)
|
|
|
|
For the Six Months
Ended
|
|
|
|
June 30,
2023
|
|
June 30,
2022
|
|
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
Average
|
|
Interest Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,581,167
|
|
$
|
62,188
|
|
4.86
|
%
|
$
|
2,201,621
|
|
$
|
42,862
|
|
3.93
|
%
|
Tax-exempt
|
|
|
224,442
|
|
|
3,537
|
|
3.18
|
|
|
207,788
|
|
|
3,011
|
|
2.92
|
|
Total loans
|
|
|
2,805,609
|
|
|
65,725
|
|
4.72
|
|
|
2,409,409
|
|
|
45,873
|
|
3.84
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
484,437
|
|
|
4,057
|
|
1.69
|
|
|
538,342
|
|
|
4,082
|
|
1.53
|
|
Tax-exempt
|
|
|
94,337
|
|
|
1,057
|
|
2.26
|
|
|
110,768
|
|
|
1,298
|
|
2.36
|
|
Total
investments
|
|
|
578,774
|
|
|
5,114
|
|
1.78
|
|
|
649,110
|
|
|
5,380
|
|
1.67
|
|
Interest-bearing
deposits
|
|
|
4,044
|
|
|
99
|
|
4.94
|
|
|
10,185
|
|
|
20
|
|
0.40
|
|
Federal funds
sold
|
|
|
40,338
|
|
|
1,041
|
|
5.20
|
|
|
92,687
|
|
|
95
|
|
0.21
|
|
Total earning
assets
|
|
|
3,428,765
|
|
|
71,979
|
|
4.23
|
%
|
|
3,161,391
|
|
|
51,368
|
|
3.28
|
%
|
Less: allowance for
credit losses
|
|
|
25,230
|
|
|
|
|
|
|
|
28,779
|
|
|
|
|
|
|
Other assets
|
|
|
209,535
|
|
|
|
|
|
|
|
211,608
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,613,070
|
|
$
|
71,979
|
|
|
|
$
|
3,344,220
|
|
$
|
51,368
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
692,999
|
|
$
|
9,514
|
|
2.77
|
%
|
$
|
592,085
|
|
$
|
833
|
|
0.28
|
%
|
Interest bearing demand
and NOW
accounts
|
|
|
751,655
|
|
|
6,326
|
|
1.70
|
|
|
801,155
|
|
|
1,064
|
|
0.27
|
|
Savings
accounts
|
|
|
497,939
|
|
|
455
|
|
0.18
|
|
|
512,367
|
|
|
192
|
|
0.08
|
|
Time deposits less than
$100
|
|
|
284,659
|
|
|
4,746
|
|
3.36
|
|
|
126,626
|
|
|
608
|
|
0.97
|
|
Time deposits $100 or
more
|
|
|
188,993
|
|
|
2,283
|
|
2.44
|
|
|
157,243
|
|
|
368
|
|
0.47
|
|
Total
interest-bearing
deposits
|
|
|
2,416,245
|
|
|
23,324
|
|
1.95
|
|
|
2,189,476
|
|
|
3,065
|
|
0.28
|
|
Short-term
borrowings
|
|
|
53,985
|
|
|
1,299
|
|
4.85
|
|
|
19,135
|
|
|
122
|
|
1.29
|
|
Long-term
debt
|
|
|
13,803
|
|
|
296
|
|
4.32
|
|
|
2,186
|
|
|
51
|
|
4.70
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
887
|
|
5.42
|
|
|
33,000
|
|
|
887
|
|
5.42
|
|
Total
borrowings
|
|
|
100,788
|
|
|
2,482
|
|
4.97
|
|
|
54,321
|
|
|
1,060
|
|
3.94
|
|
Total
interest-bearing
liabilities
|
|
|
2,517,033
|
|
|
25,806
|
|
2.07
|
|
|
2,243,797
|
|
|
4,125
|
|
0.37
|
|
Noninterest-bearing
deposits
|
|
|
728,238
|
|
|
|
|
|
|
|
745,348
|
|
|
|
|
|
|
Other
liabilities
|
|
|
39,208
|
|
|
|
|
|
|
|
30,816
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
328,591
|
|
|
|
|
|
|
|
324,259
|
|
|
|
|
|
|
Total liabilities
and
stockholders' equity
|
|
$
|
3,613,070
|
|
|
|
|
|
|
$
|
3,344,220
|
|
|
|
|
|
|
Net interest
income/spread
|
|
|
|
|
$
|
46,173
|
|
2.16
|
%
|
|
|
|
$
|
47,243
|
|
2.91
|
%
|
Net interest
margin
|
|
|
|
|
|
|
|
2.72
|
%
|
|
|
|
|
|
|
3.01
|
%
|
Tax-equivalent
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
$
|
743
|
|
|
|
|
|
|
$
|
632
|
|
|
|
Investments
|
|
|
|
|
|
222
|
|
|
|
|
|
|
|
273
|
|
|
|
Total
adjustments
|
|
|
|
|
$
|
965
|
|
|
|
|
|
|
$
|
905
|
|
|
|
Peoples Financial
Services Corp. Details of Net Interest Income and Net
Interest Margin (Unaudited) (In thousands, fully taxable
equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
32,139
|
|
$
|
30,049
|
|
$
|
27,515
|
|
$
|
25,128
|
|
$
|
22,009
|
|
Tax-exempt
|
|
|
1,780
|
|
|
1,757
|
|
|
1,730
|
|
|
1,694
|
|
|
1,542
|
|
Total loans,
net
|
|
|
33,919
|
|
|
31,806
|
|
|
29,245
|
|
|
26,822
|
|
|
23,551
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1,931
|
|
|
2,126
|
|
|
2,058
|
|
|
2,096
|
|
|
2,110
|
|
Tax-exempt
|
|
|
481
|
|
|
576
|
|
|
658
|
|
|
659
|
|
|
652
|
|
Total
investments
|
|
|
2,412
|
|
|
2,702
|
|
|
2,716
|
|
|
2,755
|
|
|
2,762
|
|
Interest on
interest-bearing balances in other banks
|
|
|
85
|
|
|
14
|
|
|
40
|
|
|
41
|
|
|
18
|
|
Federal funds
sold
|
|
|
798
|
|
|
243
|
|
|
141
|
|
|
106
|
|
|
22
|
|
Total interest
income
|
|
|
37,214
|
|
|
34,765
|
|
|
32,142
|
|
|
29,724
|
|
|
26,353
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
13,714
|
|
|
9,610
|
|
|
6,251
|
|
|
3,316
|
|
|
1,597
|
|
Short-term
borrowings
|
|
|
213
|
|
|
1,086
|
|
|
524
|
|
|
457
|
|
|
122
|
|
Long-term
debt
|
|
|
269
|
|
|
27
|
|
|
9
|
|
|
16
|
|
|
23
|
|
Subordinated
debt
|
|
|
444
|
|
|
443
|
|
|
444
|
|
|
443
|
|
|
443
|
|
Total interest
expense
|
|
|
14,640
|
|
|
11,166
|
|
|
7,228
|
|
|
4,232
|
|
|
2,185
|
|
Net interest
income
|
|
$
|
22,574
|
|
$
|
23,599
|
|
$
|
24,914
|
|
$
|
25,492
|
|
$
|
24,168
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
4.93
|
%
|
|
4.79
|
%
|
|
4.47
|
%
|
|
4.19
|
%
|
|
3.92
|
%
|
Tax-exempt
|
|
|
3.17
|
%
|
|
3.18
|
%
|
|
3.08
|
%
|
|
2.98
|
%
|
|
2.92
|
%
|
Total loans,
net
|
|
|
4.79
|
%
|
|
4.66
|
%
|
|
4.35
|
%
|
|
4.09
|
%
|
|
3.83
|
%
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
1.65
|
%
|
|
1.73
|
%
|
|
1.54
|
%
|
|
1.53
|
%
|
|
1.53
|
%
|
Tax-exempt
|
|
|
2.18
|
%
|
|
2.33
|
%
|
|
2.35
|
%
|
|
2.34
|
%
|
|
2.35
|
%
|
Total
investments
|
|
|
1.73
|
%
|
|
1.83
|
%
|
|
1.68
|
%
|
|
1.67
|
%
|
|
1.67
|
%
|
Interest-bearing
balances with banks
|
|
|
5.04
|
%
|
|
4.66
|
%
|
|
3.41
|
%
|
|
1.77
|
%
|
|
0.68
|
%
|
Federal funds
sold
|
|
|
5.24
|
%
|
|
5.09
|
%
|
|
3.86
|
%
|
|
3.08
|
%
|
|
0.37
|
%
|
Total interest-earning
assets
|
|
|
4.31
|
%
|
|
4.16
|
%
|
|
3.84
|
%
|
|
3.59
|
%
|
|
3.34
|
%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2.21
|
%
|
|
1.67
|
%
|
|
1.08
|
%
|
|
0.59
|
%
|
|
0.30
|
%
|
Short-term
borrowings
|
|
|
5.07
|
%
|
|
4.81
|
%
|
|
4.20
|
%
|
|
2.30
|
%
|
|
1.40
|
%
|
Long-term
debt
|
|
|
4.32
|
%
|
|
4.41
|
%
|
|
4.87
|
%
|
|
4.64
|
%
|
|
4.85
|
%
|
Subordinated
debt
|
|
|
5.40
|
%
|
|
5.44
|
%
|
|
5.33
|
%
|
|
5.33
|
%
|
|
5.38
|
%
|
Total interest-bearing
liabilities
|
|
|
2.29
|
%
|
|
1.84
|
%
|
|
1.20
|
%
|
|
0.72
|
%
|
|
0.39
|
%
|
Net interest
spread
|
|
|
2.02
|
%
|
|
2.32
|
%
|
|
2.64
|
%
|
|
2.87
|
%
|
|
2.95
|
%
|
Net interest
margin
|
|
|
2.61
|
%
|
|
2.82
|
%
|
|
2.97
|
%
|
|
3.08
|
%
|
|
3.06
|
%
|
Peoples Financial
Services Corp. Consolidated Balance Sheets
(Unaudited) (In thousands)
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
At period end
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
37,774
|
|
$
|
31,354
|
|
$
|
37,675
|
|
$
|
35,000
|
|
$
|
39,693
|
|
Interest-bearing
balances in other banks
|
|
|
5,814
|
|
|
7,129
|
|
|
193
|
|
|
8,410
|
|
|
8,040
|
|
Federal funds
sold
|
|
|
93,100
|
|
|
102,100
|
|
|
|
|
|
69,600
|
|
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale
|
|
|
395,826
|
|
|
418,125
|
|
|
477,703
|
|
|
477,590
|
|
|
513,911
|
|
Equity investments
carried at fair value
|
|
|
92
|
|
|
81
|
|
|
110
|
|
|
103
|
|
|
121
|
|
Held to
maturity
|
|
|
88,211
|
|
|
89,705
|
|
|
91,179
|
|
|
92,771
|
|
|
94,446
|
|
Total
investments
|
|
|
484,129
|
|
|
507,911
|
|
|
568,992
|
|
|
570,464
|
|
|
608,478
|
|
Loans held for
sale
|
|
|
|
|
|
|
|
|
|
|
|
653
|
|
|
681
|
|
Loans
|
|
|
2,843,238
|
|
|
2,818,043
|
|
|
2,730,116
|
|
|
2,623,706
|
|
|
2,565,579
|
|
Less: allowance for
credit losses
|
|
|
23,218
|
|
|
25,444
|
|
|
27,472
|
|
|
29,822
|
|
|
29,374
|
|
Net loans
|
|
|
2,820,020
|
|
|
2,792,599
|
|
|
2,702,644
|
|
|
2,593,884
|
|
|
2,536,205
|
|
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Premises and equipment,
net
|
|
|
57,712
|
|
|
56,561
|
|
|
55,667
|
|
|
54,394
|
|
|
53,094
|
|
Bank owned life
insurance
|
|
|
48,857
|
|
|
48,598
|
|
|
48,344
|
|
|
48,235
|
|
|
47,968
|
|
Deferred tax
assets
|
|
|
16,258
|
|
|
16,015
|
|
|
18,739
|
|
|
20,796
|
|
|
16,269
|
|
Accrued interest
receivable
|
|
|
11,406
|
|
|
11,678
|
|
|
11,715
|
|
|
10,082
|
|
|
9,303
|
|
Other intangible
assets, net
|
|
|
48
|
|
|
77
|
|
|
105
|
|
|
179
|
|
|
276
|
|
Other assets
|
|
|
43,287
|
|
|
41,079
|
|
|
46,071
|
|
|
41,739
|
|
|
38,162
|
|
Total
assets
|
|
$
|
3,681,775
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
$
|
3,421,539
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
713,375
|
|
$
|
746,089
|
|
$
|
772,765
|
|
$
|
769,935
|
|
$
|
747,558
|
|
Interest-bearing
|
|
|
2,516,106
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
|
|
2,163,725
|
|
Total
deposits
|
|
|
3,229,481
|
|
|
3,235,967
|
|
|
3,046,598
|
|
|
3,124,140
|
|
|
2,911,283
|
|
Short-term
borrowings
|
|
|
19,530
|
|
|
17,280
|
|
|
114,930
|
|
|
14,700
|
|
|
129,170
|
|
Long-term
debt
|
|
|
25,000
|
|
|
25,000
|
|
|
555
|
|
|
1,104
|
|
|
1,646
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Accrued interest
payable
|
|
|
4,701
|
|
|
2,304
|
|
|
903
|
|
|
1,129
|
|
|
1,269
|
|
Other
liabilities
|
|
|
38,276
|
|
|
36,286
|
|
|
42,179
|
|
|
40,923
|
|
|
33,274
|
|
Total
liabilities
|
|
|
3,349,988
|
|
|
3,349,837
|
|
|
3,238,165
|
|
|
3,214,996
|
|
|
3,109,642
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
14,272
|
|
|
14,323
|
|
|
14,321
|
|
|
14,330
|
|
|
14,346
|
|
Capital
surplus
|
|
|
125,371
|
|
|
126,231
|
|
|
126,850
|
|
|
126,845
|
|
|
126,986
|
|
Retained
earnings
|
|
|
244,017
|
|
|
237,522
|
|
|
230,515
|
|
|
224,238
|
|
|
217,139
|
|
Accumulated other
comprehensive loss
|
|
|
(51,873)
|
|
|
(49,442)
|
|
|
(56,336)
|
|
|
(63,603)
|
|
|
(46,574)
|
|
Total stockholders'
equity
|
|
|
331,787
|
|
|
328,634
|
|
|
315,350
|
|
|
301,810
|
|
|
311,897
|
|
Total liabilities and
stockholders'
equity
|
|
$
|
3,681,775
|
|
$
|
3,678,471
|
|
$
|
3,553,515
|
|
$
|
3,516,806
|
|
$
|
3,421,539
|
|
Peoples Financial
Services Corp. Loan and Asset Quality Data
(Unaudited) (In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At period
end
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
384,091
|
|
$
|
375,033
|
|
$
|
377,215
|
|
$
|
371,164
|
|
$
|
371,153
|
Non-taxable
|
|
|
225,796
|
|
|
224,343
|
|
|
222,043
|
|
|
224,764
|
|
|
225,656
|
Total
|
|
|
609,887
|
|
|
599,376
|
|
|
599,258
|
|
|
595,928
|
|
|
596,809
|
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
|
1,794,355
|
|
|
1,782,911
|
|
|
1,709,827
|
|
|
1,620,116
|
|
|
1,569,658
|
Residential
|
|
|
348,911
|
|
|
342,459
|
|
|
330,728
|
|
|
326,223
|
|
|
317,672
|
Total
|
|
|
2,143,266
|
|
|
2,125,370
|
|
|
2,040,555
|
|
|
1,946,339
|
|
|
1,887,330
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect
Auto
|
|
|
83,348
|
|
|
86,587
|
|
|
76,491
|
|
|
70,006
|
|
|
69,161
|
Consumer
Other
|
|
|
6,737
|
|
|
6,710
|
|
|
13,812
|
|
|
11,433
|
|
|
12,279
|
Total
|
|
|
90,085
|
|
|
93,297
|
|
|
90,303
|
|
|
81,439
|
|
|
81,440
|
Total
|
|
$
|
2,843,238
|
|
$
|
2,818,043
|
|
$
|
2,730,116
|
|
$
|
2,623,706
|
|
$
|
2,565,579
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
At quarter end
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Nonperforming
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans
|
|
$
|
1,900
|
|
$
|
1,798
|
|
$
|
3,386
|
|
$
|
3,938
|
|
$
|
4,387
|
|
Accruing loans past
due 90 days or more
|
|
|
181
|
|
|
59
|
|
|
748
|
|
|
280
|
|
|
190
|
|
Foreclosed
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
2,081
|
|
$
|
1,857
|
|
$
|
4,134
|
|
$
|
4,218
|
|
$
|
4,577
|
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
Three months
ended
|
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
Allowance for credit
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
$
|
25,444
|
|
$
|
27,472
|
|
$
|
29,822
|
|
$
|
29,374
|
|
$
|
28,407
|
|
ASU 2016-13 Transition
Adjustment
|
|
|
|
|
|
(3,283)
|
|
|
|
|
|
|
|
|
|
|
Adjusted beginning
balance
|
|
|
25,444
|
|
|
24,189
|
|
|
29,822
|
|
|
29,374
|
|
|
28,407
|
|
Charge-offs
|
|
|
77
|
|
|
75
|
|
|
233
|
|
|
101
|
|
|
98
|
|
Recoveries
|
|
|
52
|
|
|
66
|
|
|
32
|
|
|
99
|
|
|
115
|
|
(Credit to) provision
for credit losses
|
|
|
(2,201)
|
|
|
1,264
|
|
|
(2,149)
|
|
|
450
|
|
|
950
|
|
Ending
balance
|
|
$
|
23,218
|
|
$
|
25,444
|
|
$
|
27,472
|
|
$
|
29,822
|
|
$
|
29,374
|
|
Peoples Financial
Services Corp. Deposit and Liquidity Detail
(Unaudited) (In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At period
end
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
|
June 30,
2022
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market
accounts
|
|
$
|
670,669
|
|
$
|
775,511
|
|
$
|
685,323
|
|
$
|
706,947
|
|
$
|
592,989
|
Interest bearing demand
and NOW
accounts
|
|
|
760,690
|
|
|
698,888
|
|
|
772,712
|
|
|
813,743
|
|
|
752,397
|
Savings
accounts
|
|
|
470,340
|
|
|
500,709
|
|
|
523,931
|
|
|
530,124
|
|
|
518,146
|
Time deposits less than
$250
|
|
|
504,672
|
|
|
400,327
|
|
|
199,136
|
|
|
224,517
|
|
|
219,690
|
Time deposits $250 or
more
|
|
|
109,735
|
|
|
114,443
|
|
|
92,731
|
|
|
78,874
|
|
|
80,503
|
Total interest-bearing
deposits
|
|
|
2,516,106
|
|
|
2,489,878
|
|
|
2,273,833
|
|
|
2,354,205
|
|
|
2,163,725
|
Noninterest-bearing
deposits
|
|
|
713,375
|
|
|
746,089
|
|
|
772,765
|
|
|
769,935
|
|
|
747,558
|
Total
deposits
|
|
$
|
3,229,481
|
|
$
|
3,235,967
|
|
$
|
3,046,598
|
|
$
|
3,124,140
|
|
$
|
2,911,283
|
|
|
|
June 30,
2023
|
At period
end
|
|
|
Amount
|
|
Percent of
Total
|
|
|
Number of
accounts
|
|
Average
Balance
|
Deposit
Detail:
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,416,652
|
|
43.9
|
%
|
|
71,122
|
$
|
20
|
Commercial
|
|
|
1,077,276
|
|
33.4
|
|
|
13,170
|
|
82
|
Municipal
|
|
|
463,939
|
|
14.4
|
|
|
1,752
|
|
265
|
Brokered
|
|
|
271,614
|
|
8.4
|
|
|
28
|
|
9,701
|
Total
Deposits
|
|
$
|
3,229,481
|
|
100.0
|
|
|
86,072
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured
|
|
|
820,642
|
|
25.4
|
%
|
|
|
|
|
Insured
|
|
|
2,408,839
|
|
74.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30,
2023
|
|
Total
Available
|
|
Outstanding
|
|
for Future
Liquidity
|
FHLB
advances
|
|
$
|
1,212,489
|
|
$
|
284,846
|
|
$
|
927,643
|
Federal Reserve
discount window
|
|
|
272,131
|
|
|
|
|
|
272,131
|
Correspondent bank
lines of credit
|
|
|
18,000
|
|
|
|
|
|
18,000
|
Other sources of
liquidity:
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
|
368,294
|
|
|
271,614
|
|
|
96,680
|
Unencumbered
securities
|
|
|
384,755
|
|
|
|
|
|
384,755
|
Total sources of
liquidity
|
|
$
|
2,255,669
|
|
$
|
556,460
|
|
$
|
1,699,209
|
Peoples Financial
Services Corp. Consolidated Balance Sheets
(Unaudited) (In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Average quarterly balances
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
2,615,881
|
|
$
|
2,546,068
|
|
$
|
2,441,358
|
|
$
|
2,377,803
|
|
$
|
2,254,405
|
|
Tax-exempt
|
|
|
224,960
|
|
|
223,917
|
|
|
223,293
|
|
|
225,637
|
|
|
211,885
|
|
Total loans,
net
|
|
|
2,840,841
|
|
|
2,769,985
|
|
|
2,664,651
|
|
|
2,603,440
|
|
|
2,466,290
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
469,712
|
|
|
499,327
|
|
|
528,826
|
|
|
544,782
|
|
|
553,078
|
|
Tax-exempt
|
|
|
88,371
|
|
|
100,368
|
|
|
111,206
|
|
|
111,578
|
|
|
111,138
|
|
Total
investments
|
|
|
558,083
|
|
|
599,695
|
|
|
640,032
|
|
|
656,360
|
|
|
664,216
|
|
Interest-bearing
balances with banks
|
|
|
6,839
|
|
|
1,218
|
|
|
4,649
|
|
|
9,180
|
|
|
10,694
|
|
Federal funds
sold
|
|
|
61,093
|
|
|
19,353
|
|
|
14,477
|
|
|
13,665
|
|
|
23,920
|
|
Total interest-earning
assets
|
|
|
3,466,856
|
|
|
3,390,251
|
|
|
3,323,809
|
|
|
3,282,645
|
|
|
3,165,120
|
|
Other assets
|
|
|
184,020
|
|
|
184,594
|
|
|
169,153
|
|
|
180,861
|
|
|
181,900
|
|
Total
assets
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
|
|
$
|
2,493,680
|
|
$
|
2,337,951
|
|
$
|
2,301,974
|
|
$
|
2,228,829
|
|
$
|
2,167,569
|
|
Noninterest-bearing
|
|
|
711,729
|
|
|
744,931
|
|
|
758,889
|
|
|
770,833
|
|
|
756,225
|
|
Total
deposits
|
|
|
3,205,409
|
|
|
3,082,882
|
|
|
3,060,863
|
|
|
2,999,662
|
|
|
2,923,794
|
|
Short-term
borrowings
|
|
|
16,854
|
|
|
91,530
|
|
|
49,444
|
|
|
78,922
|
|
|
34,953
|
|
Long-term
debt
|
|
|
25,000
|
|
|
2,482
|
|
|
814
|
|
|
1,369
|
|
|
1,901
|
|
Subordinated
debt
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
|
33,000
|
|
Other
liabilities
|
|
|
39,494
|
|
|
38,917
|
|
|
41,436
|
|
|
38,840
|
|
|
33,080
|
|
Total
liabilities
|
|
|
3,319,757
|
|
|
3,248,811
|
|
|
3,185,557
|
|
|
3,151,793
|
|
|
3,026,728
|
|
Stockholders'
equity
|
|
|
331,119
|
|
|
326,034
|
|
|
307,405
|
|
|
311,713
|
|
|
320,292
|
|
Total liabilities and
stockholders'
equity
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
Peoples Financial
Services Corp. Reconciliation of Non-GAAP Financial
Measures (Unaudited) (In thousands, except share and per
share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
Mar 31
|
|
Dec 31
|
|
Sept 30
|
|
June 30
|
|
Three months ended
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
Core net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
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
|
|
$
|
9,425
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Average common shares
outstanding - diluted
|
|
|
7,177,915
|
|
|
7,198,970
|
|
|
7,201,785
|
|
|
7,213,147
|
|
|
7,215,365
|
|
Core net income per
share
|
|
$
|
1.31
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
1.38
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
|
331,787
|
|
$
|
328,634
|
|
$
|
315,350
|
|
$
|
301,810
|
|
$
|
311,897
|
|
Less:
Goodwill
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
|
63,370
|
|
Less: Other intangible
assets, net
|
|
|
48
|
|
|
77
|
|
|
105
|
|
|
179
|
|
|
276
|
|
Total tangible
stockholders' equity
|
|
$
|
268,369
|
|
$
|
265,187
|
|
$
|
251,875
|
|
$
|
238,261
|
|
$
|
248,251
|
|
Common shares
outstanding
|
|
|
7,130,409
|
|
|
7,150,757
|
|
|
7,158,018
|
|
|
7,162,750
|
|
|
7,170,661
|
|
Tangible book value per
share
|
|
$
|
37.64
|
|
$
|
37.09
|
|
$
|
35.19
|
|
$
|
33.26
|
|
$
|
34.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
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
|
|
$
|
9,425
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Average stockholders'
equity
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
Core return on average
stockholders' equity
|
|
|
11.42
|
%
|
|
9.35
|
%
|
|
13.81
|
%
|
|
12.69
|
%
|
|
11.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Average stockholders'
equity
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
Less: average
intangibles
|
|
|
63,433
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
|
63,694
|
|
Average tangible
stockholders' equity
|
|
$
|
267,687
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
$
|
256,598
|
|
Return on average
tangible stockholders' equity
|
|
|
14.12
|
%
|
|
11.71
|
%
|
|
14.87
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
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
|
|
$
|
9,425
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Average stockholders'
equity
|
|
$
|
331,119
|
|
$
|
326,034
|
|
$
|
307,405
|
|
$
|
311,713
|
|
$
|
320,292
|
|
Less: average
intangibles
|
|
|
63,433
|
|
|
63,461
|
|
|
63,512
|
|
|
63,549
|
|
|
63,694
|
|
Average tangible
stockholders' equity
|
|
$
|
267,687
|
|
$
|
262,573
|
|
$
|
243,893
|
|
$
|
248,164
|
|
$
|
256,598
|
|
Core return on average
tangible stockholders' equity
|
|
|
14.12
|
%
|
|
11.61
|
%
|
|
17.41
|
%
|
|
15.94
|
%
|
|
14.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
GAAP
|
|
$
|
9,425
|
|
$
|
7,579
|
|
$
|
9,139
|
|
$
|
9,968
|
|
$
|
9,353
|
|
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
|
|
$
|
9,425
|
|
$
|
7,515
|
|
$
|
10,700
|
|
$
|
9,968
|
|
$
|
9,353
|
|
Average
assets
|
|
$
|
3,650,876
|
|
$
|
3,574,845
|
|
$
|
3,492,962
|
|
$
|
3,463,506
|
|
$
|
3,347,020
|
|
Core return on average
assets
|
|
|
1.04
|
%
|
|
0.85
|
%
|
|
1.22
|
%
|
|
1.14
|
%
|
|
1.12
|
%
|
Peoples Financial
Services Corp. Reconciliation of Non-GAAP Financial
Measures (Unaudited) (In thousands, except share and per
share data)
|
|
The following tables
reconcile the non-GAAP financial measures of FTE net interest
income for the three and six months
ended June 30, 2023 and 2022:
|
|
Three months ended June
30
|
|
2023
|
|
2022
|
|
Interest income
(GAAP)
|
|
$
|
36,736
|
|
$
|
25,892
|
|
Adjustment to
FTE
|
|
|
478
|
|
|
461
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
37,214
|
|
|
26,353
|
|
Interest
expense
|
|
|
14,640
|
|
|
2,185
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
22,574
|
|
$
|
24,168
|
|
|
|
|
|
|
|
|
|
Six months ended June
30
|
|
2023
|
|
2022
|
|
Interest income
(GAAP)
|
|
$
|
71,014
|
|
$
|
50,463
|
|
Adjustment to
FTE
|
|
|
965
|
|
|
905
|
|
Interest income
adjusted to FTE (non-GAAP)
|
|
|
71,979
|
|
|
51,368
|
|
Interest
expense
|
|
|
25,806
|
|
|
4,125
|
|
Net interest income
adjusted to FTE (non-GAAP)
|
|
$
|
46,173
|
|
$
|
47,243
|
|
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 and six months ended June 30, 2023 and
2022:
|
|
Three months ended June
30
|
|
2023
|
|
2022
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
16,614
|
|
$
|
15,493
|
|
Less: amortization of
intangible assets expense
|
|
|
28
|
|
|
97
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
16,586
|
|
|
15,396
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
22,096
|
|
|
23,707
|
|
Plus: taxable
equivalent adjustment
|
|
|
478
|
|
|
461
|
|
Noninterest income
(GAAP)
|
|
|
3,552
|
|
|
3,881
|
|
Less: Net gains
(losses) on equity securities
|
|
|
12
|
|
|
(23)
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
26,114
|
|
$
|
28,072
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
63.51
|
%
|
|
54.84
|
%
|
|
|
|
|
|
|
|
|
Six months ended June
30
|
|
2023
|
|
2022
|
|
Efficiency ratio
(non-GAAP):
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP)
|
|
$
|
33,168
|
|
$
|
29,782
|
|
Less: Amortization of
intangible assets expense
|
|
|
57
|
|
|
193
|
|
Noninterest expense
adjusted for amortization of assets expense (non-GAAP)
|
|
|
33,111
|
|
|
29,589
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
|
|
45,208
|
|
|
46,338
|
|
Plus: Taxable
equivalent adjustment
|
|
|
965
|
|
|
905
|
|
Noninterest income
(GAAP)
|
|
|
7,226
|
|
|
7,302
|
|
Less: Net losses on
equity securities
|
|
|
(17)
|
|
|
(19)
|
|
Less: Gains on sale of
available for sale securities
|
|
|
81
|
|
|
|
|
Net interest income
(FTE) plus noninterest income (non-GAAP)
|
|
$
|
53,335
|
|
$
|
54,564
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(non-GAAP)
|
|
|
62.08
|
%
|
|
54.23
|
%
|
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SOURCE Peoples Financial Services Corp.