MOOSIC, Pa., Jan. 30, 2026 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples" or the "Company") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the "Bank"), today reported unaudited financial results at and for the three months and year ended December 31, 2025.
Peoples reported net income of $12.0 million, or $1.19 per diluted share for the three months ended December 31, 2025, compared to net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025, and net income of $6.1 million, or $0.61 per diluted share for the three months ended December 31, 2024. Return on average assets ("ROAA") and return on average equity ("ROAE") on an annualized basis for the three months ended December 31, 2025, was 0.92% and 9.16% compared to 1.19% and 12.02% for the three months ended September 30, 2025, and 0.47% and 5.07% for the three months ended December 31, 2024. Net income in the current quarter was negatively impacted by the recognition of a $2.2 million pre-tax loss ($1.8 million after tax) on the sale of available for sale ("AFS") investment securities associated with a strategic portfolio repositioning. Net income in the fourth quarter of 2024 included $5.0 million in acquisition-related expenses. Core net income, a non-GAAP measure[1], was $13.7 million, or $1.36 per diluted share for the three months ended December 31, 2025, and $10.0 million, or $0.99 per diluted share for the comparable three-month period of 2024.
For the year ended December 31, 2025, net income was $59.2 million, or $5.88 per diluted share an increase of $50.7 million compared to $8.5 million, or $0.99 per diluted share for 2024, which was primarily due to a full year of combined operations following the merger with FNCB Bancorp, Inc. ("FNCB" or "FNCB merger") on July 1, 2024, coupled with a reduction in the provision for credit losses. Higher levels of interest-earning assets, higher transaction volumes and purchase accounting related accretion resulting from the FNCB merger resulted in the increase in net interest income, noninterest income and noninterest expense when compared to the prior year. Net income in 2024 included acquisition-related expenses of $16.2 million compared to $0.2 million in 2025, and a non-recurring provision of $14.3 million for non-purchase credit deteriorated ("PDC") loans acquired in the FNCB merger. Core net income, a non-GAAP measure1 was $61.1 million, or $6.07 per diluted share for the year ended December 31, 2025, and $32.4 million, or $3.77 per diluted share for the year ended December 31, 2024. The Company's consolidated financial results for any periods ended or including periods prior to July 1, 2024, do not reflect the financial results of FNCB and its subsidiaries.
"We delivered solid full-year results in 2025, with net income of $59.2 million driven by strong net interest income and a lower provision for credit losses, reflecting the benefits of our expanded balance sheet and disciplined credit performance," said Gerard Champi, Chief Executive Officer of Peoples. "While fourth-quarter earnings were impacted by a strategic $2.2 million pre-tax loss related to the repositioning of our available-for-sale securities portfolio, this action strengthens our balance sheet and positions us well for future periods. Excluding this item, core earnings demonstrated continued momentum, supported by higher earning asset levels, increased transaction activity, and ongoing accretion from the FNCB merger. As we move forward, we remain focused on disciplined growth, operating efficiency, and delivering long-term value for our shareholders," concluded Champi.
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, core net income and pre-provision revenue ratios, and tax-equivalent net interest income and related ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely net gains and losses on the sale of AFS investment securities, acquisition-related expenses and merger-related adjustments to the allowance for credit losses ("ACL") for nonrecurring provisions for purchase credit deteriorated ("PCD") and non-PCD loans. 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 and should not be viewed as a substitute for GAAP.
NOTABLES
- The Company completed a repositioning of a portion of its investment securities portfolio at the end of the fourth quarter of 2025. As part of the repositioning, the Company sold $78.6 million of lower-yielding, U.S. treasury bonds with a weighted average yield of 1.18%, resulting in an after-tax loss of approximately $1.8 million. The net proceeds of approximately $76.1 million from the sale were used to purchase higher-yielding investment securities that have been classified as AFS including $38.2 million of U.S. agency mortgage-backed securities and $37.9 million of tax-exempt municipal bonds. The purchased securities, which have been classified as AFS, have a weighted average book yield of approximately 4.67%. The Company expects to recover the after-tax loss recorded on the sale within approximately 10 months.
- Core net income, a non-GAAP measure1 was $13.7 million, or $1.36 per diluted share for the three months ended December 31, 2025, and $10.0 million, or $0.99 per diluted share for the comparable three-month period of 2024. For the year ended December 31, 2025, core net income, a non-GAAP measure1 was $61.1 million, or $6.07 per diluted share, and $32.4 million, or $3.77 per diluted share for the year ended December 31, 2024.
- ROAE for the three months annualized and year ended December 31, 2025, was 9.16% and 11.89% respectively, and 5.07% and 2.07% for the corresponding periods of 2024. Core ROAE, a non-GAAP measure1 was 10.49% and 12.27% for the three months annualized and year ended December 31, 2025, compared to 8.31% and 7.88% for the corresponding periods of 2024.
- ROAA for the three months annualized and year ended December 31, 2025, was 0.92% and 1.17% respectively, and 0.47% and 0.19% for the corresponding periods of 2024. Core ROAA, a non-GAAP measure1, was 1.05% and 1.21% for the three months annualized and year ended December 31, 2025, compared to 0.76% and 0.72% for the three months annualized and year ended December 31, 2024.
- Book value per common share at December 31, 2025, increased to $52.01 from $46.94 at December 31, 2024. Tangible book value per common share, a non-GAAP measure1, increased to $41.64 at December 31, 2025, compared to $35.88 at December 31, 2024.
- Total loans increased $50.5 million or 5.0% annualized during the three months ended December 31, 2025; for the year ended December 31, 2025, total loans increased $73.4 million, or 1.8% to $4.1 billion.
- Non-performing assets to total assets improved to 0.23% at December 31, 2025, compared to 0.45% at December 31, 2024, and non-performing assets to total loans, net and foreclosed assets improved to 0.30% at December 31, 2025, compared to 0.58% at December 31, 2024.
INCOME STATEMENT REVIEW
- Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure1, for the three months ended December 31, 2025, improved 35 basis points to 3.60% compared to 3.25% for the three months ended December 31, 2024. For the full year, the FTE NIM expanded 74 basis points to 3.58% in 2025 compared to 2.84% in 2024.
- The FTE yield on interest-earning assets, a non-GAAP measure[2], increased 5 basis points to 5.56% for the fourth quarter of 2025, from 5.51% for the same quarter of 2024, and increased 43 basis points to 5.57% for the year ended December 31, 2025, from 5.14% for the year ended December 31, 2024.
- The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 33 basis points to 2.55% for the three months ended December 31, 2025, from 2.88% for the three months ended December 31, 2024, and decreased 34 basis points to 2.59% for the year ended December 31, 2025, from 2.93% for the year ended December 31, 2024.
- The cost of interest-bearing deposits decreased 45 basis points for the three months ended December 31, 2025, to 2.30% from 2.75% in the three months ended December 31, 2024, and decreased 43 basis points to 2.39% for the year ended December 31, 2025, from 2.82% for the year ended December 31, 2024.
- The cost of total deposits, which includes the impact of noninterest-bearing deposits was 1.82% for the fourth quarter of 2025, a decrease of 38 basis points from 2.20% for the same quarter of 2024. For the full year, the cost of total deposits decreased 40 basis points to 1.89% in 2025 from 2.29% in 2024.
- The efficiency ratio, a non-GAAP measure[3], was 59.53% and 56.45% for the three months and year ended December 31, 2025, respectively, compared to 62.67% and 63.83% for the respective periods of 2024.
Fourth Quarter 2025 Results - Comparison to Fourth Quarter 2024
Net interest income on a FTE basis for the three months ended December 31, 2025, increased $4.5 million to $43.7 million from $39.2 million for the three months ended December 31, 2024. The increase in FTE net interest income was due to a $0.9 million increase in tax-equivalent interest income, a non-GAAP measure1, coupled with a $3.6 million decrease in interest expense.
The $0.9 million increase in FTE interest income was largely due to an increase in the FTE yield on earning assets, primarily taxable loans and taxable and tax-exempt investments, coupled with an increase in total average earning assets. The FTE yield on earning assets increased 5 basis points to 5.56% for the fourth quarter of 2025 from 5.51% for the comparable quarter of 2024. The yield on taxable loans increased 15 basis points to 6.19% from 6.04% comparing the fourth quarters of 2025 and 2024, respectively. The yield on the total investment securities portfolio increased 17 basis points to 3.27% for the three months ended December 31, 2025, from 3.10% for the same three months of 2024 as new purchases were added at yields higher than existing portfolio yields. Total average earning assets increased $2.2 million comparing the fourth quarters of 2025 and 2024, due primarily to increases in average investments and federal funds sold, partially offset by a reduction in average loans. Accretion associated with purchase accounting fair value discounts on purchased loans was $4.1 million for the three months ended December 31, 2025, and $4.4 million for the same period of 2024. Average investments totaled $643.1 million in the three months ended December 31, 2025, and $628.9 million in the three months ended December 31, 2024, an increase of $14.2 million. Average federal funds sold increased $5.2 million to $134.7 million for the three months ended December 31, 2025, from $129.5 million for the three months ended December 31, 2024. Average loans, net, decreased $17.8 million for the three months ended December 31, 2025, compared to the prior year three-month period ended December 31, 2024.
The decrease in interest expense, comparing the three month periods ended December 31, 2025, and December 31, 2024, was due primarily to decreases in average deposit rates, coupled with a reduction in higher cost brokered deposits, partially offset by increases in average volumes and rates on borrowed funds, which were largely related to the net new issuance of subordinated debt in the second quarter of 2025 in the amount of $52.0 million. Average interest-bearing deposits decreased $153.4 million to $3.4 billion, or 78.9% of total average deposits for the three months ended December 31, 2025, from $3.6 billion, or 79.8% of average total deposits, for the three months ended December 31, 2024. Average brokered deposits decreased $140.0 million to $158.5 million for the three months ended December 31, 2025, from $298.5 million for the comparable three-month period of 2024. Average noninterest bearing deposits increased $9.7 million to $914.0 million, or 21.1% of total average deposits for the three months ended December 31, 2025, from $904.3 million, or 20.2% of total average deposits for the three months ended December 31, 2024.
Average total borrowings increased $77.1 million for the three months ended December 31, 2025, as compared to the same period of 2024, which was primarily due to a combination of increases in long-term borrowings and the new issuance of subordinated debt, which occurred in the second quarter of 2025. Additionally, the Company's cost of borrowings increased 42 basis points to 5.77% for the three months ended December 31, 2025, compared to 5.35% for the same three months of 2024. In June 2025, the Company called and redeemed $33.0 million of its subordinated notes due in June 2030 that repriced to 9.08% and issued $85.0 million in fixed-to-floating rate subordinated notes due June 2035 at an initial fixed rate through June 2030 of 7.75%.
Short-term borrowings averaged $31.8 million for the three-month period ended December 31, 2025, at an average cost of 3.87% compared to $39.3 million at an average cost of 4.80% for the comparable three-month period in 2024. Long-term debt, which includes term borrowings from the FHLB of Pittsburgh, averaged $145.4 million for the three-month period ended December 31, 2025, at an average cost of 4.54% compared to $111.1 million at an average cost of 4.97% for the three months ended December 31, 2024. Subordinated debt averaged $83.1 million for the three-month period ended December 31, 2025, at an average cost of 8.35% compared to $33.0 million at an average cost of 5.35% for the three months ended December 31, 2024.
For the three months ended December 31, 2025, the provision for credit losses was $1.0 million, a decrease of $2.4 million from the $3.4 million recorded in the year ago period. The decrease was due primarily to downward adjustments to qualitative factors on pooled loans, partially offset by an increase of $384 thousand in specific reserves on individually evaluated loans, while model loss rates were substantially unchanged.
Noninterest income was $3.7 million and $5.5 million for the three months ended December 31, 2025, and 2024, respectively. The quarter ended December 31, 2025 includes a $2.2 million loss on the sale of AFS treasury securities as part of a strategy to restructure the portfolio with higher-yielding securities. Interest rate swap income increased to $0.7 million from $0.3 million due to increased commercial loan volume.
Noninterest expense decreased $3.8 million to $31.1 million for the three months ended December 31, 2025, from $34.8 million for the three months ended December 31, 2024, which primarily reflected the absence of acquisition related expenses, partially offset by increased occupancy and equipment expenses due to the corporate office relocation and higher maintenance costs, and increased professional services including loan review services for a larger combined loan portfolio and consulting services related to SOX control enhancement, process improvement and implementation of a new on-line account opening platform. Acquisition-related expenses were $5.0 million in the quarter ended December 31, 2024, with no comparable expenses in the quarter ended December 31, 2025. Occupancy and equipment expenses were $7.3 million for the three months ended December 31, 2025, and $6.4 million for the same three months of 2024. Professional services totaled $1.9 million for the three months ended December 31, 2025, and $0.8 million for the same three months of 2024.
Income tax expense was $2.7 million for the three months ended December 31, 2025, compared to a benefit of $0.3 million for the three months ended December 31, 2024. The effective tax rate was 18.6% for the three months ended December 31, 2025, while the prior year's quarter resulted in a tax benefit rate of 4.7%.
Full Year Results - 2025 vs. 2024
Net interest income for the year ended December 31, 2025, increased $50.0 million to $166.0 million from $116.0 million for the year ended December 31, 2024. FTE net interest income, a non-GAAP measure[4], for year ended December 31, 2025, increased $50.3 million to $168.7 million from $118.4 million for the year ended December 31, 2024.
Tax-equivalent interest income, a non-GAAP measure1, increased $48.7 million to $262.5 million in 2025 from $213.8 million in 2024, due to higher levels of interest-earning assets such as loans and investments and an additional $7.2 million from accretion of purchase accounting marks on acquired loans. Average loans increased $541.4 million and average investments increased $24.1 million comparing the years ended December 31, 2025, and 2024. The tax-equivalent yield on interest-earning assets, a non-GAAP measure1, was 5.57% for the year ended December 31, 2025, compared to 5.14% for the year ended December 31, 2024. Loan yields increased 37 basis points to 5.99% while investment yields increased 72 basis points to 3.15% for the year ended December 31, 2025. Average federal funds sold decreased $20.2 million to $58.5 million for the year ended December 31, 2025, from $78.7 million for the same period of 2024. Additionally, the average rate on federal funds sold decreased 111 basis points reflecting the 75-basis point cut to the federal funds rate by the Federal Open Market Committee in 2025.
Interest expense decreased $1.7 million to $93.7 million for the year ended December 31, 2025, from $95.5 million for the year ended December 31, 2024, which was primarily driven by a reduction in funding costs that outweighed increases to average balances. Average interest-bearing liabilities increased $354.8 million to $3.6 billion from $3.3 billion comparing the years ended December 31, 2025, and 2024, which reflected higher volumes of both deposits and borrowings. The cost of interest-bearing liabilities during the year ended December 31, 2025, decreased 34 basis points to 2.59% from 2.93% for the year ended December 31, 2024. The cost of interest-bearing deposit products decreased 43 basis points to 2.39% for the year ended December 31, 2025, from 2.82% for the prior year, while borrowing costs increased 42 basis points to 5.71% from 5.29% for the year ended December 31, 2024. The increase in the cost of borrowed funds was largely due to the previously mentioned issuance of new subordinated debt, partially offset by a reduction in market rates for short-term borrowings.
For the year ended December 31, 2025, a provision for credit losses of $98 thousand was recorded compared to a prior year provision of $19.1 million. The prior year provision included a non-recurring, Day 1 provision of $14.3 million for non-PCD loans acquired in the FNCB merger. The 2025 provision was due primarily to improvement in qualitative factors driven by a reduction in commercial real estate concentration levels and a seasoning of the equipment financing portfolio, while overall model loss rates were substantially unchanged. Specific reserves on individually evaluated loans increased $384 thousand.
Noninterest income was $21.7 million for the year ended December 31, 2025, and $18.3 million for the year ended December 31, 2024. The increase in non-interest income was primarily attributable to the increased size and scale of the Company following the FNCB merger. Comparing the years ended December 31, 2025, and 2024, service charges and fees increased $2.9 million, wealth management income increased $0.8 million, income from interest rate swap transactions increased $0.8 million, bank owned life insurance cash surrender value increased $0.5 million and merchant services income increased $0.4 million. Partially offsetting the increases was the net loss on the sale of AFS investment securities of $2.2 million resulting from the Company's partial investment portfolio repositioning.
Noninterest expense for the year ended December 31, 2025, was $115.4 million, an increase of $8.7 million from $106.7 million for the year ended December 31, 2024. Almost all noninterest expense line items increased as a result of the FNCB merger and the expanded operations of the combined Company. Salaries and employee benefits expenses increased $10.6 million compared to 2024 due to the addition of staff associated with the FNCB merger. Occupancy and equipment expenses were higher by $5.2 million in the current period due to increased technology costs related to system integration and increased account and transaction volumes, and higher facilities costs. Amortization of intangible assets increased $3.0 million in the year ended December 31, 2025, on the amortization of merger-related intangibles, primarily core deposit intangibles. Partially offsetting these increases was a decrease of $16.0 million in merger-related expenses to $0.2 million for the year ended December 31, 2025. The efficiency ratio, a non-GAAP measure[5], improved to 56.45% for the year ended December 31, 2025, compared to 63.83% for the year ended December 31, 2024.
The provision for income taxes for the year ended December 31, 2025, totaled $13.0 million and the effective tax rate was 18.1% as compared to a tax benefit of $30 thousand, or 0.4% for the year ended December 31, 2024.
BALANCE SHEET REVIEW
At December 31, 2025, total assets, loans, and deposits were $5.3 billion, $4.1 billion, and $4.4 billion, respectively.
Total loans, which were $4.1 billion at December 31, 2025, increased $73.4 million as compared to December 31, 2024. Increases in commercial loans, commercial and residential real estate loans, and consumer loans were partially offset by reductions to equipment financing, and indirect auto loans.
Total investments were $587.2 million at December 31, 2025, compared to $606.9 million at December 31, 2024. At December 31, 2025, AFS securities totaled $512.6 million and the held to maturity securities totaled $72.0 million. The unrealized loss on AFS securities decreased $19.9 million from $49.0 million at December 31, 2024, to $29.1 million at December 31, 2025. The unrealized losses on the held to maturity portfolio totaled $9.2 million and $13.0 million at December 31, 2025, and December 31, 2024, respectively.
Total deposits increased $26.5 million to $4.4 billion at December 31, 2025. Noninterest-bearing deposits increased $19.0 million to $954.5 million at December 31, 2025, from $935.5 million at December 31, 2024. Interest-bearing deposits increased $7.5 million comparing December 31, 2025, and 2024, which largely reflected increases in interest-bearing demand, money market accounts and retail time deposits, partially offset by a reduction in brokered deposits. The Company had $152.2 million and $256.4 million of longer-term brokered CDs at December 31, 2025, and December 31, 2024, respectively. As part of strategic balance sheet management initiatives, the Company reduced its higher rate brokered CD portfolio by $104.2 million during 2025. Total retail deposits, which exclude brokered deposits, increased $130.7 million to $4.3 billion at December 31, 2025, from $4.2 billion at December 31, 2024.
The Company's deposit base is diversified and consisted of 40.6% retail accounts, 35.6% commercial accounts, 20.4% municipal relationships and 3.4% brokered deposits at December 31, 2025. At December 31, 2025, total uninsured deposits were approximately $1.5 billion, or 34.3% of total deposits. Included in the uninsured total at December 31, 2025, were $494.3 million of municipal deposits collateralized by letters of credit issued by the FHLB, and $2.9 million of affiliate company deposits.
In addition to deposit gathering and current long-term debt, the Company has additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities. At December 31, 2025, available borrowing capacity totaled $1.0 billion at the FHLB and $349.0 million at the Federal Reserve's Discount Window. At December 31, 2025, the Company had $269.0 million in cash and cash equivalents, an increase of $133.1 million from $135.9 million at December 31, 2024. For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 17.
The Company maintained its well capitalized position at December 31, 2025. Stockholders' equity equaled $519.8 million or $52.01 per share at December 31, 2025, compared to $469.0 million or $46.94 per share at December 31, 2024. The increase in stockholders' equity from December 31, 2024, is primarily attributable to net income and a $16.0 million decrease to accumulated other comprehensive loss ("AOCL") resulting primarily from a reduction in the unrealized loss on AFS securities, partially offset by dividends to shareholders. The net after tax unrealized loss on AFS securities included in AOCL at December 31, 2025, and December 31, 2024, was $22.8 million and $38.3 million, respectively.
Tangible book value, a non-GAAP measure[6], increased to $41.64 per share at December 31, 2025, from $35.88 per share at December 31, 2024. Dividends declared for the year ended December 31, 2025, amounted to $2.47 per share.
ASSET QUALITY REVIEW
Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $12.1 million or 0.30% of loans, net, and foreclosed assets at December 31, 2025, compared to $23.0 million or 0.58% of loans, net, and foreclosed assets at December 31, 2024. As a percentage of total assets, nonperforming assets were 0.23% at December 31, 2025, compared to 0.45% at December 31, 2024. The reduction in nonperforming assets was largely due to an $11.7 million decrease in nonaccrual loans following the resolution of several large commercial credit relationships. At December 31, 2025, the Company had one foreclosed commercial property recorded at $0.8 million compared to one foreclosed residential property recorded at $27 thousand at December 31, 2024.
During the three months ended December 31, 2025, net charge-offs were $1.8 million and the provision for credit losses was $1.0 million, compared to net charge-offs of $0.9 million and a provision for credit losses of $3.4 million for the same period of 2024. Net charge-offs in the current quarter included a valuation adjustment of $0.8 million related to a commercial property foreclosure. During the year ended December 31, 2025, net charge-offs totaled $2.9 million and the Company recognized a provision for credit losses of $98 thousand. The allowance for credit losses equaled $39.0 million or 0.96% of loans, net, at December 31, 2025, compared to $41.8 million or 1.05% of loans, net, at December 31, 2024.
_____________________________
(1) See reconciliation of non-GAAP financial measures on pg.18-20.
About Peoples:
Peoples Financial Services Corp. is the bank holding company of Peoples Security Bank and Trust Company, an independent community bank serving its retail and commercial customers through 40 full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York. 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, and local and timely decision making. For more information visit psbt.com.
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 its subsidiaries (collectively, "Peoples") and other statements that are not historical facts 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 undue reliance should not be placed on forward-looking statements and 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: macroeconomic trends, including interest rates and inflation and their effect on our investment values; the effects of any recession in the United States; political instability and the consequences thereof, such as any shutdown of the U.S. federal government; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs, retaliatory tariffs, tariff counter-measures, or the threat of such actions; impairment charges relating to our investment portfolio; credit risks in connection with our lending activities; the economic health of our market area; our exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; our ability to maintain an adequate allowance for credit losses; access to liquidity; the strength of our customer deposit levels; unrealized losses; reliance on our subsidiaries; accounting procedures, policies and requirements; changes in the value of goodwill; future pension plan costs; our ability to retain key personnel; the strength of our disclosure controls and procedures; environmental liabilities; reliance on third-party vendors and service providers; competition from non-bank entities; the development and use of AI in business processes, services, and products; our ability to prevent, detect and respond to cybersecurity threats and incidents; a failure of information technology, whether due to a breach, cybersecurity incident, or ability to keep pace with growth and developments; our ability to comply with privacy and data protection requirements; changes in U.S. or regional economic conditions; our ability to compete effectively in our industry; the soundness of other financial institutions; adverse changes (or the threat of such changes) in laws and regulations; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; our ability to realize the anticipated benefits of the FNCB merger; future acquisitions or a change in control; and other factors that may be described in our 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.
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)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
2025 2025 2025 2025 2024
Key performance data:
Share and per share amounts:
Net income $
1.19 $
1.51 $
1.68 $
1.49 $
0.61
Core net income (1) $
1.36 $
1.51 $
1.69 $
1.51 $
0.99
Core net income (PPNR) (1) $
1.80 $
1.81 $
2.03 $
1.83 $
1.46
Cash dividends declared $
0.6175 $
0.6175 $
0.6175 $
0.6175 $
0.6175
Book value $
52.01 $
50.95 $
49.44 $
48.21 $
46.94
Tangible book value (1) $
41.64 $
40.43 $
38.75 $
37.35 $
35.88
Market value:
High $
53.22 $
53.69 $
51.21 $
53.70 $
58.76
Low $
44.54 $
46.90 $
40.67 $
44.47 $
44.73
Closing $
48.71 $
48.61 $
49.37 $
44.47 $
51.18
Market capitalization $
486,837 $
485,837 $
493,438 $
444,499 $
511,325
Common shares outstanding 9,994,595 9,994,595 9,994,696 9,995,483 9,990,724
Selected ratios:
Return on average stockholders' equity 9.16 12.02 13.87 12.70 5.07
% % % % %
Core return on average stockholders' equity (1) 10.49 12.03 13.92 12.80 8.31
% % % % %
Return on average tangible stockholders' equity (1) 11.47 15.24 17.73 16.46 6.62
% % % % %
Core return on average tangible stockholders' equity (1) 13.14 15.25 17.79 16.59 10.87
% % % % %
Return on average assets 0.92 1.19 1.36 1.22 0.47
% % % % %
Core return on average assets (1) 1.05 1.19 1.36 1.23 0.76
% % % % %
Stockholders' equity to total assets 9.86 9.87 9.67 9.64 9.21
% % % % %
Efficiency ratio (1)(2) 59.53 56.52 53.92 55.77 62.67
% % % % %
Nonperforming assets to loans, net, and foreclosed assets 0.30 0.42 0.44 0.59 0.58
% % % % %
Nonperforming assets to total assets 0.23 0.33 0.34 0.47 0.45
% % % % %
Net charge-offs to average loans, net 0.18 0.02 0.00 0.09 0.09
% % % % %
Allowance for credit losses to loans, net 0.96 0.99 1.02 1.03 1.05
% % % % %
Interest earning assets yield (FTE) (3) 5.56 5.56 5.68 5.50 5.51
% % % % %
Cost of funds 2.55 2.64 2.60 2.58 2.88
% % % % %
Net interest spread (FTE) (3) 3.01 2.92 3.08 2.92 2.63
% % % % %
Net interest margin (FTE) (1)(3) 3.60 3.54 3.69 3.50 3.25
% % % % %
(1)
See Reconciliation of Non-GAAP financial measures on pages 19-21.
(2) Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment
securities AFS and net gains (losses) on sales of fixed assets.
(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)
Dec 31 Dec 31
Year ended 2025 2024
Interest income:
Interest and fees on loans:
Taxable $
228,868 $
184,907
Tax-exempt 8,356 7,354
Interest and dividends on investment securities:
Taxable 17,444 12,930
Tax-exempt 2,040 1,550
Dividends 160 89
Interest on interest-bearing deposits in other banks 405 498
Interest on federal funds sold 2,424 4,132
Total interest income 259,697 211,460
Interest expense:
Interest on deposits 81,174 87,934
Interest on short-term borrowings 1,287 2,031
Interest on long-term debt 5,562 3,317
Interest on subordinated debt 4,967 1,774
Interest on junior subordinated debt 745 415
Total interest expense 93,735 95,471
Net interest income 165,962 115,989
Provision for credit losses 98 19,131
Net interest income after provision for credit losses 165,864 96,858
Noninterest income:
Service charges, fees, commissions and other 13,618 10,673
Merchant services income 1,299 896
Commissions and fees on fiduciary activities 2,267 2,270
Wealth management income 2,958 2,118
Mortgage banking income 549 389
Increase in cash surrender value of life insurance 2,076 1,572
Interest rate swap income 1,107 285
Net gains on equity investments 168 132
Net (losses) gains on sale of investment securities available for sale (2,241) 1
Net loss on sale of fixed assets (74)
Total noninterest income 21,727 18,336
Noninterest expense:
Salaries and employee benefits expense 56,341 45,746
Net occupancy and equipment expense 27,448 22,296
Acquisition related expenses 236 16,200
Amortization of intangible assets 6,397 3,367
FDIC insurance and assessments 3,288 3,158
Other expenses 21,647 15,959
Total noninterest expense 115,357 106,726
Income before income taxes 72,234 8,468
Income tax expense (benefit) 13,047 (30)
Net income $
59,187 $
8,498
Other comprehensive income:
Unrealized gains on investment securities available for sale $
17,574 $
2,569
Reclassification adjustment for losses (gains) on available for sale securities included in net income 2,241 (1)
Change in pension liability 674 1,518
Change in derivative fair value (64) 632
Income tax expense related to other comprehensive income 4,421 1,062
Other comprehensive income, net of income tax expense 16,004 3,656
Comprehensive income $
75,191 $
12,154
Share and per share amounts:
Net income - basic $
5.92 $
1.00
Net income - diluted 5.88 0.99
Cash dividends declared $
2.47 $
2.06
Average common shares outstanding - basic 9,994,281 8,531,122
Average common shares outstanding - diluted 10,073,996 8,586,035
Peoples Financial Services Corp.
Consolidated Statements of Income (Loss) (Unaudited)
(In thousands, except per share data)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
Three months ended 2025 2025 2025 2025 2024
Interest income:
Interest and fees on loans:
Taxable $
58,576 $
57,621 $
57,459 $
55,212 $
57,048
Tax-exempt 1,658 2,151 2,302 2,245 2,238
Interest and dividends on investment securities:
Taxable 4,371 4,335 4,604 4,134 4,359
Tax-exempt 708 537 399 396 397
Dividends 32 47 40 41 40
Interest on interest-bearing deposits in other banks 95 101 96 113 113
Interest on federal funds sold 1,332 372 435 285 1,608
Total interest income 66,772 65,164 65,335 62,426 65,803
Interest expense:
Interest on deposits 19,830 20,194 20,303 20,847 24,718
Interest on short-term borrowings 311 341 410 225 474
Interest on long-term debt 1,665 1,509 1,211 1,177 1,389
Interest on subordinated debt 1,750 1,748 1,026 443 444
Interest on junior subordinated debt 182 189 188 186 267
Total interest expense 23,738 23,981 23,138 22,878 27,292
Net interest income 43,034 41,183 42,197 39,548 38,511
Provision (benefit) for credit losses 975 (838) (239) 200 3,369
Net interest income after provision (benefit) for credit losses 42,059 42,021 42,436 39,348 35,142
Noninterest income:
Service charges, fees, commissions and other 3,164 3,386 3,664 3,404 3,368
Merchant services income 163 321 584 231 298
Commissions and fees on fiduciary activities 560 607 563 537 553
Wealth management income 739 950 619 650 633
Mortgage banking income 162 148 125 114 126
Increase in cash surrender value of life insurance 472 543 535 526 456
Interest rate swap income 718 182 164 43 260
Net gains (losses) on equity investments 125 (21) (7) 71 (23)
Net (losses) on sale of investment securities available for sale (2,241)
Net (losses) gains on sale of fixed assets (139) (615) 680 (165)
Total noninterest income 3,723 5,501 6,247 6,256 5,506
Noninterest expense:
Salaries and employee benefits expense 14,971 14,128 13,761 13,481 15,287
Net occupancy and equipment expense 7,333 7,221 6,284 6,610 6,386
Acquisition related expenses 16 66 154 4,990
Amortization of intangible assets 1,515 1,515 1,684 1,683 1,702
FDIC insurance and assessments 683 607 976 1,022 1,251
Other expenses 6,562 5,191 5,491 4,403 5,217
Total noninterest expense 31,064 28,678 28,262 27,353 34,833
Income before income taxes 14,718 18,844 20,421 18,251 5,815
Income tax expense (benefit) 2,742 3,598 3,465 3,242 (272)
Net income $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale $
2,728 $
7,415 $
1,859 $
5,572 $
(10,175)
Reclassification adjustment for gains on available for sale securities included in net income 2,241
Change in benefit plan liabilities 674 1,518
Change in derivative fair value 50 18 16 (148) 817
Income tax expense (benefit) related to other comprehensive income (loss) 1,208 1,621 409 1,183 (1,686)
Other comprehensive income (loss), net of income tax expense (benefit) 4,485 5,812 1,466 4,241 (6,154)
Comprehensive income (loss) $
16,461 $
21,058 $
18,422 $
19,250 $
(67)
Share and per share amounts:
Net income - basic $
1.20 $
1.53 $
1.70 $
1.50 $
0.61
Net income - diluted 1.19 1.51 1.68 1.49 0.61
Cash dividends declared $
0.6175 $
0.6175 $
0.6175 $
0.6175 $
0.6175
Average common shares outstanding - basic 9,994,595 9,994,629 9,994,955 9,992,922 9,994,605
Average common shares outstanding - diluted 10,083,044 10,086,915 10,082,260 10,043,186 10,051,337
Peoples Financial Services Corp.
Net Interest Margin (Unaudited)
(In thousands, fully taxable equivalent basis)
Three Months Ended
December 31, 2025 December 31, 2024
Average Interest Yield/ Average Interest
Income/ Income/ Yield/
Balance Expense Rate Balance Expense Rate
Assets:
Earning assets:
Loans:
Taxable $
3,756,872 $
58,576 6.19 $
3,757,273 $
57,048 6.04
% %
Tax-exempt 261,029 2,099 3.19 278,429 2,834 4.05
Total loans 4,017,901 60,675 5.99 4,035,702 59,882 5.90
Investments:
Taxable 529,838 4,403 3.30 541,526 4,399 3.23
Tax-exempt 113,302 896 3.14 87,419 502 2.29
Total investments 643,140 5,299 3.27 628,945 4,901 3.10
Interest-bearing deposits 9,683 95 3.89 9,116 113 4.93
Federal funds sold 134,742 1,332 3.92 129,517 1,608 4.94
Total earning assets 4,805,466 67,401 5.56 4,803,280 66,504 5.51
% %
Less: allowance for credit losses 40,117 39,850
Other assets 414,296 440,029
Total assets $
5,179,645 $
5,203,459
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts $
972,871 $
6,780 2.76 $
945,644 $
7,526 3.17
% %
Interest-bearing demand and NOW accounts 1,248,045 6,520 2.07 1,276,206 7,549 2.35
Savings accounts 495,001 403 0.32 502,028 651 0.52
Time deposits less than $100 316,533 2,670 3.35 497,473 5,428 4.34
Time deposits $100 or more 387,476 3,457 3.54 351,970 3,564 4.03
Total interest-bearing deposits 3,419,926 19,830 2.30 3,573,321 24,718 2.75
Short-term borrowings 31,862 311 3.87 39,319 474 4.80
Long-term debt 145,447 1,665 4.54 111,135 1,389 4.97
Subordinated debt 83,137 1,750 8.35 33,000 444 5.35
Junior subordinated debt 8,125 182 8.89 8,026 267 13.23
Total borrowings 268,571 3,908 5.77 191,480 2,574 5.35
Total interest-bearing liabilities 3,688,497 23,738 2.55 3,764,801 27,292 2.88
% %
Noninterest-bearing deposits 914,014 904,274
Other liabilities 58,201 56,445
Stockholders' equity 518,933 477,939
Total liabilities and stockholders' equity $
5,179,645 $
5,203,459
Net interest income/spread $
43,663 3.01 $
39,212 2.63
% %
Net interest margin 3.60 3.25
% %
Tax-equivalent adjustments:
Loans $
441 $
596
Investments 188 105
Total adjustments $
629 $
701
The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.
Peoples Financial Services Corp.
Net Interest Margin (Unaudited)
(In thousands, fully taxable equivalent basis)
Year Ended
December 31, 2025 December 31, 2024
Average Interest Yield/ Average Interest
Income/ Income/ Yield/
Balance Expense Rate Balance Expense Rate
Assets:
Earning assets:
Loans:
Taxable $
3,724,920 $
228,868 6.14 $
3,205,564 $
184,907 5.77
% %
Tax-exempt 273,373 10,577 3.87 251,300 9,309 3.70
Total loans 3,998,293 239,445 5.99 3,456,864 194,216 5.62
Investments:
Taxable 544,782 17,604 3.23 529,649 13,019 2.46
Tax-exempt 96,548 2,582 2.67 87,563 1,962 2.24
Total investments 641,330 20,186 3.15 617,212 14,981 2.43
Interest-bearing deposits 9,871 405 4.10 9,434 498 5.28
Federal funds sold 58,542 2,424 4.14 78,698 4,132 5.25
Total earning assets 4,708,036 262,460 5.57 4,162,208 213,827 5.14
% %
Less: allowance for credit losses 41,399 30,724
Other assets 402,931 362,130
Total assets $
5,069,568 $
4,493,614
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Money market accounts $
958,516 $
27,884 2.91 $
621,993 $
29,643 4.77
% %
Interest-bearing demand and NOW accounts 1,205,926 25,088 2.08 1,261,095 23,674 1.88
Savings accounts 497,991 1,530 0.31 463,199 4,625 1.00
Time deposits less than $100 371,339 13,812 3.72 480,737 18,124 3.77
Time deposits $100 or more 362,253 12,860 3.55 291,482 11,868 4.07
Total interest-bearing deposits 3,396,025 81,174 2.39 3,118,506 87,934 2.82
Short-term borrowings 29,241 1,287 4.40 37,083 2,031 5.48
Long-term debt 118,612 5,562 4.69 68,441 3,317 4.85
Subordinated debt 63,918 4,967 7.77 33,000 1,774 5.38
Junior subordinated debt 8,087 745 9.21 4,028 415 10.30
Total borrowings 219,858 12,561 5.71 142,552 7,537 5.29
Total interest-bearing liabilities 3,615,883 93,735 2.59 3,261,058 95,471 2.93
% %
Noninterest-bearing deposits 898,043 714,824
Other liabilities 57,651 106,970
Stockholders' equity 497,991 410,762
Total liabilities and stockholders' equity $
5,069,568 $
4,493,614
Net interest income/spread $
168,725 2.98 $
118,356 2.21
% %
Net interest margin 3.58 2.84
% %
Tax-equivalent adjustments:
Loans $
2,221 $
1,955
Investments 542 412
Total adjustments $
2,763 $
2,367
The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.
Peoples Financial Services Corp.
Details of Net Interest Income and Net Interest Margin (Unaudited)
(In thousands, fully taxable equivalent basis)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
Three months ended 2025 2025 2025 2025 2024
Net interest income:
Interest income:
Loans, net:
Taxable $
58,576 $
57,621 $
57,459 $
55,212 $
57,048
Tax-exempt 2,099 2,722 2,914 2,842 2,834
Total loans, net 60,675 60,343 60,373 58,054 59,882
Investments:
Taxable 4,403 4,382 4,644 4,175 4,399
Tax-exempt 896 680 505 501 502
Total investments 5,299 5,062 5,149 4,676 4,901
Interest on interest-bearing balances in other banks 95 101 96 113 113
Federal funds sold 1,332 372 435 285 1,608
Total interest income 67,401 65,878 66,053 63,128 66,504
Interest expense:
Deposits 19,830 20,194 20,303 20,847 24,718
Short-term borrowings 311 341 410 225 474
Long-term debt 1,665 1,509 1,211 1,177 1,389
Subordinated debt 1,750 1,748 1,026 443 444
Junior subordinated debt 182 189 188 186 267
Total interest expense 23,738 23,981 23,138 22,878 27,292
Net interest income $
43,663 $
41,897 $
42,915 $
40,250 $
39,212
Loans, net:
Taxable 6.19 6.12 6.22 6.05 6.04
% % % % %
Tax-exempt 3.19 4.00 4.14 4.11 4.05
% % % % %
Total loans, net 5.99 5.98 6.07 5.92 5.90
% % % % %
Investments:
Taxable 3.30 3.14 3.45 3.05 3.23
% % % % %
Tax-exempt 3.14 2.74 2.33 2.33 2.29
% % % % %
Total investments 3.27 3.08 3.29 2.95 3.10
% % % % %
Interest-bearing balances with banks 3.89 4.24 4.19 4.09 4.93
% % % % %
Federal funds sold 3.92 4.41 4.46 4.45 4.94
% % % % %
Total interest-earning assets 5.56 5.56 5.68 5.50 5.51
% % % % %
Interest expense:
Deposits 2.30 2.39 2.41 2.46 2.75
% % % % %
Short-term borrowings 3.87 4.63 4.62 4.52 4.80
% % % % %
Long-term debt 4.54 4.62 4.81 4.88 4.97
% % % % %
Subordinated debt 8.35 8.34 7.40 5.44 5.35
% % % % %
Junior subordinated debt 8.89 9.26 9.34 9.37 13.23
% % % % %
Total interest-bearing liabilities 2.55 2.64 2.60 2.58 2.88
% % % % %
Net interest spread 3.01 2.92 3.08 2.92 2.63
% % % % %
Net interest margin 3.60 3.54 3.69 3.50 3.25
% % % % %
Peoples Financial Services Corp.
Consolidated Balance Sheets (Unaudited)
(In thousands)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
At period end 2025 2025 2025 2025 2024
Assets:
Cash and due from banks $
58,420 $
62,133 $
60,173 $
60,125 $
47,029
Interest-bearing balances in other banks 9,321 9,492 9,646 9,196 8,593
Federal funds sold 201,243 108,298 105,920 7,781 80,229
Investment securities:
Available for sale 512,563 534,521 505,181 503,043 526,329
Held to maturity 72,047 73,286 75,137 76,689 78,184
Equity investments carried at fair value 2,598 2,473 2,494 2,500 2,430
Total investments 587,208 610,280 582,812 582,232 606,943
Loans held for sale 805 816 547 420
Loans 4,066,896 4,016,367 3,997,525 3,991,539 3,993,505
Less: allowance for credit losses 39,007 39,843 40,890 41,054 41,776
Net loans 4,027,889 3,976,524 3,956,635 3,950,485 3,951,729
Goodwill 75,986 75,986 75,986 75,986 75,986
Premises and equipment, net 78,496 77,009 76,896 72,492 73,283
Bank owned life insurance 88,645 88,175 87,635 87,953 87,429
Deferred tax assets 26,555 30,025 31,647 32,628 35,688
Accrued interest receivable 17,633 16,995 15,854 16,436 15,632
Other intangible assets, net 27,700 29,239 30,778 32,488 34,197
Other assets 70,677 74,664 73,350 71,136 74,919
Total assets $
5,270,578 $
5,159,636 $
5,107,879 $
4,999,358 $
5,091,657
Liabilities:
Deposits:
Noninterest-bearing $
954,485 $
912,044 $
899,597 $
901,398 $
935,516
Interest-bearing 3,479,584 3,377,687 3,387,752 3,415,529 3,472,036
Total deposits 4,434,069 4,289,731 4,287,349 4,316,927 4,407,552
Short-term borrowings 32,721 76,310 76,340 14,840 15,900
Long-term debt 134,352 137,029 103,449 88,403 98,637
Subordinated debt 83,187 83,111 83,164 33,000 33,000
Junior subordinated debt 8,140 8,114 8,088 8,063 8,039
Accrued interest payable 6,792 7,976 4,640 5,439 5,503
Other liabilities 51,470 48,105 50,753 50,832 54,076
Total liabilities 4,750,731 4,650,376 4,613,783 4,517,504 4,622,707
Stockholders' equity:
Common stock 20,015 20,015 20,015 20,014 19,995
Capital surplus 251,023 250,735 250,468 250,488 250,695
Retained earnings 273,500 267,686 258,601 247,806 238,955
Accumulated other comprehensive loss (24,691) (29,176) (34,988) (36,454) (40,695)
Total stockholders' equity 519,847 509,260 494,096 481,854 468,950
Total liabilities and stockholders' equity $
5,270,578 $
5,159,636 $
5,107,879 $
4,999,358 $
5,091,657
Peoples Financial Services Corp.
Loan and Asset Quality Data (Unaudited)
(In thousands)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
At period end 2025 2025 2025 2025 2024
Commercial
Taxable $
596,422 $
597,163 $
595,042 $
570,966 $
556,630
Non-taxable 257,657 263,921 278,026 282,031 279,390
Total 854,079 861,084 873,068 852,997 836,020
Real estate
Commercial real estate 2,330,282 2,278,745 2,252,574 2,275,241 2,294,113
Residential 602,309 588,520 573,864 560,067 551,383
Total 2,932,591 2,867,265 2,826,438 2,835,308 2,845,496
Consumer
Indirect Auto 93,742 100,298 104,618 108,819 117,914
Consumer Other 17,496 14,212 13,929 14,209 14,955
Total 111,238 114,510 118,547 123,028 132,869
Equipment Financing 168,988 173,508 179,472 180,206 179,120
Total $
4,066,896 $
4,016,367 $
3,997,525 $
3,991,539 $
3,993,505
Dec 31 Sept 30 June 30 Mar 31 Dec 31
At period end 2025 2025 2025 2025 2024
Nonperforming assets:
Nonaccrual/restructured loans $
10,796 $
14,386 $
17,390 $
23,002 $
22,499
Accruing loans past due 90 days or more 524 886 72 655 458
Foreclosed assets 750 1,541 27 27
Total nonperforming assets $
12,070 $
16,813 $
17,462 $
23,684 $
22,984
Dec 31 Sept 30 June 30 Mar 31 Dec 31
Three months ended 2025 2025 2025 2025 2024
Allowance for credit losses:
Beginning balance $
39,843 $
40,890 $
41,054 $
41,776 $
39,341
Charge-offs 1,960 489 1,151 1,233 1,108
Recoveries 149 280 1,226 311 174
Provision (benefit) for credit losses 975 (838) (239) 200 3,369
Ending balance $
39,007 $
39,843 $
40,890 $
41,054 $
41,776
Peoples Financial Services Corp.
Deposit and Liquidity Detail (Unaudited)
(In thousands)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
At period end 2025 2025 2025 2025 2024
Interest-bearing deposits:
Money market accounts $
989,230 $
1,026,725 $
971,136 $
967,661 $
936,239
Interest-bearing demand and NOW accounts 1,285,767 1,186,342 1,200,911 1,177,507 1,238,853
Savings accounts 497,523 493,957 500,680 502,851 492,180
Time deposits less than $250 477,115 497,131 543,257 599,127 620,725
Time deposits $250 or more 229,949 173,532 171,768 168,383 184,039
Total interest-bearing deposits 3,479,584 3,377,687 3,387,752 3,415,529 3,472,036
Noninterest-bearing deposits 954,485 912,044 899,597 901,398 935,516
Total deposits $
4,434,069 $
4,289,731 $
4,287,349 $
4,316,927 $
4,407,552
December 31, 2025
At period end Amount Percent of Number of Average
Total accounts Balance
Deposit Detail:
Retail $
1,797,539 40.6
% 94,166 $
19
Commercial 1,579,584 35.6 18,474 86
Municipal 904,725 20.4 2,531 357
Brokered 152,221 3.4 13 11,709
Total Deposits $
4,434,069 100.0
% 115,184 $
38
Uninsured $
1,519,528 34.3
%
Insured 2,914,541 65.7
December 31, 2024
At period end Amount Percent of Number of Average
Total accounts Balance
Deposit Detail:
Retail $
1,779,729 40.4
% 98,583 $
18
Commercial 1,538,757 34.9 18,675 82
Municipal 832,665 18.9 2,427 343
Brokered 256,401 5.8 28 9,157
Total Deposits $
4,407,552 100.0
% 119,713 $
37
Uninsured $
1,381,492 31.3
%
Insured 3,026,060 68.7
Total Available
At December 31, 2025 Total Outstanding for Future
Available Liquidity
FHLB advances (1) $
1,692,839 $
658,587 $
1,034,252
Federal Reserve - Discount Window 348,996 348,996
Correspondent bank lines of credit 27,000 27,000
Other sources of liquidity:
Brokered deposits 790,587 152,221 638,366
Unencumbered securities 221,170 221,170
Total sources of liquidity $
3,080,592 $
810,808 $
2,269,784
(1) Outstanding balance of FHLB advances includes letters of credit used to collateralize public fund deposits.
Peoples Financial Services Corp.
Consolidated Balance Sheets (Unaudited)
(In thousands)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
Average quarterly balances 2025 2025 2025 2025 2024
Assets:
Loans, net:
Taxable $
3,756,872 $
3,736,269 $
3,707,650 $
3,698,124 $
3,757,273
Tax-exempt 261,029 269,757 282,406 280,555 278,429
Total loans, net 4,017,901 4,006,026 3,990,056 3,978,679 4,035,702
Investments:
Taxable 529,838 553,151 540,424 555,910 541,526
Tax-exempt 113,302 98,608 86,899 87,072 87,419
Total investments 643,140 651,759 627,323 642,982 628,945
Interest-bearing balances with banks 9,683 9,441 9,186 11,197 9,116
Federal funds sold 134,742 33,443 39,084 25,979 129,517
Total interest-earning assets 4,805,466 4,700,669 4,665,649 4,658,837 4,803,280
Other assets 374,179 366,809 348,685 349,840 400,179
Total assets $
5,179,645 $
5,067,478 $
5,014,334 $
5,008,677 $
5,203,459
Liabilities and stockholders' equity:
Deposits:
Interest-bearing $
3,419,926 $
3,353,559 $
3,373,916 $
3,437,355 $
3,573,321
Noninterest-bearing 914,014 905,385 897,212 875,053 904,274
Total deposits 4,333,940 4,258,944 4,271,128 4,312,408 4,477,595
Short-term borrowings 31,862 29,208 35,587 20,176 39,319
Long-term debt 145,447 129,524 101,066 97,769 111,135
Subordinated debt 83,137 83,149 55,622 33,000 33,000
Junior subordinated debt 8,125 8,098 8,075 8,050 8,026
Other liabilities 58,201 55,530 52,608 58,018 56,445
Total liabilities 4,660,712 4,564,453 4,524,086 4,529,421 4,725,520
Stockholders' equity 518,933 503,025 490,248 479,256 477,939
Total liabilities and stockholders' equity $
5,179,645 $
5,067,478 $
5,014,334 $
5,008,677 $
5,203,459
Peoples Financial Services Corp.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In thousands, except share and per share data)
Dec 31 Sept 30 June 30 Mar 31 Dec 31
Three months ended 2025 2025 2025 2025 2024
Core net income per share:
Net income GAAP $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Adjustments:
Less: (Loss) on sale of available for sale securities (2,241)
Add: (Loss) on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 16 66 154 4,990
Less: Acquisition related expenses tax adjustment 3 14 34 1,089
Core net income $
13,726 $
15,259 $
17,008 $
15,129 $
9,988
Average common shares outstanding - diluted 10,083,044 10,086,915 10,082,260 10,043,186 10,051,337
Core net income per diluted share $
1.36 $
1.51 $
1.69 $
1.51 $
0.99
Tangible book value:
Total stockholders' equity $
519,847 $
509,260 $
494,096 $
481,854 $
468,950
Less: Goodwill 75,986 75,986 75,986 75,986 76,325
Less: Other intangible assets, net 27,700 29,239 30,778 32,488 34,197
Total tangible stockholders' equity $
416,161 $
404,035 $
387,332 $
373,380 $
358,428
Common shares outstanding 9,994,595 9,994,595 9,994,696 9,995,483 9,990,724
Tangible book value per share $
41.64 $
40.43 $
38.75 $
37.35 $
35.88
Core return on average stockholders' equity:
Net income GAAP $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Adjustments:
Less: (Loss) on sale of available for sale securities (2,241)
Add: (Loss) on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 16 66 154 4,990
Less: Acquisition related expenses tax adjustment 3 14 34 1,089
Core net income $
13,726 $
15,259 $
17,008 $
15,129 $
9,988
Average stockholders' equity $
518,933 $
503,025 $
490,248 $
479,256 $
477,939
Core return on average stockholders' equity 10.49 12.03 13.92 12.80 8.31
% % % % %
Return on average tangible stockholders' equity:
Net income GAAP $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Average stockholders' equity $
518,933 $
503,025 $
490,248 $
479,256 $
477,939
Less: average intangibles 104,550 106,111 106,764 109,386 112,399
Average tangible stockholders' equity $
414,383 $
396,914 $
383,484 $
369,870 $
365,540
Return on average tangible stockholders' equity 11.47 15.24 17.73 16.46 6.62
% % % % %
Core return on average tangible stockholders' equity:
Net income GAAP $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Adjustments:
Less: (Loss) on sale of available for sale securities (2,241)
Add: (Loss) on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 16 66 154 4,990
Less: Acquisition related expenses tax adjustment 3 14 34 1,089
Core net income $
13,726 $
15,259 $
17,008 $
15,129 $
9,988
Average stockholders' equity $
518,933 $
503,025 $
490,248 $
479,256 $
477,939
Less: average intangibles 104,550 106,111 106,764 109,386 112,399
Average tangible stockholders' equity $
414,383 $
396,914 $
383,484 $
369,870 $
365,540
Core return on average tangible stockholders' equity 13.14 15.25 17.79 16.59 10.87
% % % % %
Core return on average assets:
Net income GAAP $
11,976 $
15,246 $
16,956 $
15,009 $
6,087
Adjustments:
Less: (Loss) on sale of available for sale securities (2,241)
Add: (Loss) on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 16 66 154 4,990
Less: Acquisition related expenses tax adjustment 3 14 34 1,089
Core net income $
13,726 $
15,259 $
17,008 $
15,129 $
9,988
Average assets $
5,179,645 $
5,067,478 $
5,014,334 $
5,008,677 $
5,203,459
Core return on average assets 1.05 1.19 1.36 1.23 0.76
% % % % %
Pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP) $
14,718 $
18,844 $
20,421 $
18,251 $
5,815
Add: Provision (benefit) for credit losses 975 (838) (239) 200 3,369
Add: Provision (benefit) for credit losses on unfunded commitments 204 252 172 (202) 452
PPNR (non-GAAP) $
15,897 $
18,258 $
20,354 $
18,249 $
9,636
Average common shares outstanding-diluted 10,083,044 10,086,915 10,082,260 10,043,186 10,051,337
PPNR per share (non-GAAP) $
1.58 $
1.81 $
2.02 $
1.82 $
0.96
Core pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP) $
14,718 $
18,844 $
20,421 $
18,251 $
5,815
Add: Acquisition related expenses 16 66 154 4,990
Less: (Loss) on sale of available for sale securities (2,241)
Add: Provision (benefit) for credit losses 975 (838) (239) 200 3,369
Add: Provision (benefit) for credit losses on unfunded commitments 204 252 172 (202) 452
Core PPNR (non-GAAP) $
18,138 $
18,274 $
20,420 $
18,403 $
14,626
Average common shares outstanding-diluted 10,083,044 10,086,915 10,082,260 10,043,186 10,051,337
Core PPNR per share (non-GAAP) $
1.80 $
1.81 $
2.03 $
1.83 $
1.46
(1) Tax adjustments are calculated using the effective tax rate for the respective period.
Peoples Financial Services Corp.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In thousands, except share and per share data)
Dec 31 Dec 31
Year ended 2025 2024
Core net income per share:
Net income GAAP $
59,187 $
8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment 3,126
Less: (Loss) gain on sale of available for sale securities (2,241) 1
Add: (Loss) gain on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 236 16,200
Less: Acquisition related expenses tax adjustment 52 3,534
Core net income $
61,121 $
32,365
Average common shares outstanding - diluted 10,073,996 8,586,035
Core net income per diluted share $
6.07 $
3.77
Core return on average stockholders' equity:
Net income GAAP $
59,187 $
8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment 3,126
Less: (Loss) gain on sale of available for sale securities (2,241) 1
Add: (Loss) gain on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 236 16,200
Less: Acquisition related expenses tax adjustment 52 3,534
Core net income $
61,121 $
32,365
Average stockholders' equity 497,991 410,762
Core return on average stockholders' equity 12.27 7.88
% %
Return on average tangible stockholders' equity:
Net income GAAP $
59,187 $
8,498
Average stockholders' equity 497,991 410,762
Less: average intangibles 106,933 88,043
Average tangible stockholders' equity $
391,058 $
322,719
Return on average tangible stockholders' equity 15.14 2.63
% %
Core return on average tangible stockholders' equity:
Net income GAAP $
59,187 $
8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment 3,126
Less: (Loss) gain on sale of available for sale securities (2,241) 1
Add: (Loss) gain on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 236 16,200
Less: Acquisition related expenses tax adjustment 52 3,534
Core net income $
61,121 $
32,365
Average stockholders' equity 497,991 410,762
Less: average intangibles 106,933 88,043
Average tangible stockholders' equity $
391,058 $
322,719
Core return on average tangible stockholders' equity 15.63 10.03
% %
Core return on average assets:
Net income GAAP $
59,187 $
8,498
Adjustments:
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment 3,126
Less: (Loss) gain on sale of available for sale securities (2,241) 1
Add: (Loss) gain on sale of available for sale securities tax adjustment (491)
Add: Acquisition related expenses 236 16,200
Less: Acquisition related expenses tax adjustment 52 3,534
Core net income $
61,121 $
32,365
Average assets 5,069,568 4,493,614
Core return on average assets 1.21 0.72
% %
Pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP) $
72,234 $
8,468
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: ACL provision for FNCB acquired legacy loans tax adjustment 3,126
Add: Provision for credit losses 98 4,803
Add: Provision (benefit) for credit losses on unfunded commitments 426 (43)
PPNR (non-GAAP) $
72,758 $
24,516
Average common shares outstanding-diluted 10,073,996 8,586,035
PPNR per share (non-GAAP) $
7.22 $
2.86
Core pre-provision net revenue (PPNR) per share:
Income before taxes (GAAP) $
72,234 $
8,468
Add: ACL provision for FNCB acquired legacy loans 14,328
Less: (Loss) gain on sale of available for sale securities (2,241) 1
Add: Acquisition related expenses 236 16,200
Add: Provision for credit losses 98 4,803
Add: Provision (benefit) for credit losses on unfunded commitments 426 (43)
Core PPNR (non-GAAP) $
75,235 $
43,755
Average common shares outstanding-diluted 10,073,996 8,586,035
Core PPNR per share (non-GAAP) $
7.47 $
5.10
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 and year ended December 31, 2025, and 2024:
Three months ended December 31 2025 2024
Interest income (GAAP) $
66,772 $
65,803
Adjustment to FTE 629 701
Interest income adjusted to FTE (non-GAAP) 67,401 66,504
Interest expense 23,738 27,292
Net interest income adjusted to FTE (non-GAAP) $
43,663 $
39,212
Year ended December 31 2025 2024
Interest income (GAAP) $
259,697 $
211,460
Adjustment to FTE 2,763 2,367
Interest income adjusted to FTE (non-GAAP) 262,460 213,827
Interest expense 93,735 95,471
Net interest income adjusted to FTE (non-GAAP) $
168,725 $
118,356
The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three months and year ended December 31, 2025, and 2024:
Three months ended December 31 2025 2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP) $
31,064 $
34,833
Less: Amortization of intangible assets expense 1,515 1,702
Less: Acquisition related expenses 4,990
Noninterest expense (non-GAAP) 29,549 28,141
Net interest income (GAAP) 43,034 38,511
Plus: Taxable equivalent adjustment 629 701
Noninterest income (GAAP) 3,723 5,506
Less: Net gains (losses) on equity securities 125 (23)
Less: Net losses on sale of investment securities available for sale (2,241)
Less: (Losses) on sale of fixed assets (139) (165)
Net interest income (FTE) plus noninterest income (non-GAAP) $
49,641 $
44,906
Efficiency ratio (non-GAAP) 59.53 62.67
% %
Year ended December 31 2025 2024
Efficiency ratio (non-GAAP):
Noninterest expense (GAAP) $
115,357 $
106,726
Less: Amortization of intangible assets expense 6,397 3,367
Less: Acquisition related expenses 236 16,200
Noninterest expense (non-GAAP) 108,724 87,159
Net interest income (GAAP) 165,962 115,989
Plus: Taxable equivalent adjustment 2,763 2,367
Noninterest income (GAAP) 21,727 18,336
Less: Net gains on equity securities 168 132
Less: (Losses) gains on sale of available for sale securities (2,241) 1
Less: (Losses) on sale of fixed assets (74)
Net interest income (FTE) plus noninterest income (non-GAAP) $
192,599 $
136,559
Efficiency ratio (non-GAAP) 56.45 63.83
% %
View original content to download multimedia:https://www.prnewswire.com/news-releases/peoples-financial-services-corp-reports-unaudited-fourth-quarter-and-full-year-2025-earnings-302675487.html
SOURCE Peoples Financial Services Corp.
MEDIA/INVESTORS, Marie L. Luciani, Investor Relations Officer, 570.346.7741 or marie.luciani@psbt.com