PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Third Quarter and Year to Date 2024 Earnings
Peoples Financial Services Corp reported a net loss of $4.3 million ($0.43 per diluted share) for Q3 2024, compared to net income of $6.7 million ($0.95 per diluted share) in Q3 2023. The decrease was primarily due to non-recurring charges related to the July 1, 2024 merger with FNCB Bancorp. Net interest income increased $18.0 million to $39.2 million, with tax-equivalent net interest margin rising 97 basis points to 3.26%. The merger contributed $1.8 billion in assets, $1.2 billion in loans, and $1.4 billion in deposits. Non-recurring charges included a $14.3 million provision for credit losses and $9.6 million in acquisition-related expenses.
Peoples Financial Services Corp ha registrato una perdita netta di 4,3 milioni di dollari (0,43 dollari per azione diluita) per il terzo trimestre del 2024, rispetto a un utile netto di 6,7 milioni di dollari (0,95 dollari per azione diluita) nel terzo trimestre del 2023. La diminuzione è stata principalmente dovuta a spese non ricorrenti legate alla fusione con FNCB Bancorp avvenuta il 1 luglio 2024. Il reddito netto da interessi è aumentato di 18,0 milioni di dollari a 39,2 milioni di dollari, con un margine di interesse netto equivalente fiscale che è salito di 97 punti base al 3,26%. La fusione ha contribuito con 1,8 miliardi di dollari in attivi, 1,2 miliardi di dollari in prestiti e 1,4 miliardi di dollari in depositi. Le spese non ricorrenti hanno incluso una provvista per perdite su crediti di 14,3 milioni di dollari e 9,6 milioni di dollari in spese relative all'acquisizione.
Peoples Financial Services Corp reportó una pérdida neta de 4,3 millones de dólares (0,43 dólares por acción diluida) para el tercer trimestre de 2024, en comparación con una utilidad neta de 6,7 millones de dólares (0,95 dólares por acción diluida) en el tercer trimestre de 2023. La disminución se debió principalmente a cargos no recurrentes relacionados con la fusión del 1 de julio de 2024 con FNCB Bancorp. Los ingresos netos por intereses aumentaron 18,0 millones de dólares a 39,2 millones de dólares, con un margen de interés neto equivalente fiscal que aumentó 97 puntos básicos al 3,26%. La fusión contribuyó con 1,8 mil millones de dólares en activos, 1,2 mil millones de dólares en préstamos y 1,4 mil millones de dólares en depósitos. Los cargos no recurrentes incluyeron una provisión de 14,3 millones de dólares por pérdidas crediticias y 9,6 millones de dólares en gastos relacionados con la adquisición.
Peoples Financial Services Corp는 2024년 3분기에 430만 달러(희석주당 0.43달러)의 순손실을 보고했으며, 이는 2023년 3분기의 순이익 670만 달러(희석주당 0.95달러)와 비교되는 수치입니다. 감소는 2024년 7월 1일 FNCB Bancorp와의 합병과 관련된 비경상적 비용 때문이었습니다. 순이자 수익은 1,800만 달러 증가하여 3,920만 달러에 달했으며, 세금 등가 순이자 마진은 97bp 상승하여 3.26%에 이르렀습니다. 합병은 18억 달러의 자산, 12억 달러의 대출 및 14억 달러의 예금을 기여했습니다. 비경상적 비용에는 1,430만 달러의 신용 손실 충당금과 960만 달러의 인수 관련 비용이 포함되었습니다.
Peoples Financial Services Corp a signalé une perte nette de 4,3 millions de dollars (0,43 dollar par action diluée) pour le troisième trimestre de 2024, comparativement à un bénéfice net de 6,7 millions de dollars (0,95 dollar par action diluée) au troisième trimestre de 2023. La baisse était principalement due à des frais non récurrents liés à la fusion avec FNCB Bancorp, qui a eu lieu le 1er juillet 2024. Le revenu net d’intérêts a augmenté de 18,0 millions de dollars pour atteindre 39,2 millions de dollars, tandis que la marge d’intérêt net équivalente fiscale a augmenté de 97 points de base pour s’établir à 3,26%. La fusion a apporté 1,8 milliard de dollars d'actifs, 1,2 milliard de dollars de prêts et 1,4 milliard de dollars de dépôts. Les frais non récurrents comprenaient une provision de 14,3 millions de dollars pour pertes de crédit et 9,6 millions de dollars de frais liés à l'acquisition.
Peoples Financial Services Corp meldete im dritten Quartal 2024 einen Nettoverlust von 4,3 Millionen Dollar (0,43 Dollar pro verwässerter Aktie), verglichen mit einem Nettogewinn von 6,7 Millionen Dollar (0,95 Dollar pro verwässerter Aktie) im dritten Quartal 2023. Der Rückgang war hauptsächlich auf einmalige Kosten im Zusammenhang mit der Fusion mit FNCB Bancorp am 1. Juli 2024 zurückzuführen. Das Nettozinseinkommen stieg um 18,0 Millionen Dollar auf 39,2 Millionen Dollar, wobei die steuerlich äquivalente Nettozinsspanne um 97 Basispunkte auf 3,26% anstieg. Die Fusion trug mit 1,8 Milliarden Dollar an Vermögenswerten, 1,2 Milliarden Dollar an Krediten und 1,4 Milliarden Dollar an Einlagen bei. Die einmaligen Kosten umfassten eine Rückstellung für Kreditverluste in Höhe von 14,3 Millionen Dollar sowie 9,6 Millionen Dollar an akquisitionsbezogenen Ausgaben.
- Net interest income increased by $18.0 million to $39.2 million
- Tax-equivalent net interest margin increased 97 basis points to 3.26%
- Core net income increased to $16.5 million ($1.64 per share) from $7.5 million ($1.05 per share) YoY
- Merger added $1.8 billion in assets and expanded market presence
- Net loss of $4.3 million in Q3 2024 compared to $6.7 million profit in Q3 2023
- $14.3 million provision for credit losses on acquired loans
- $9.6 million in acquisition-related expenses
- Tangible book value per share decreased to $36.24 from $39.31
Insights
The Q3 2024 results show significant changes due to the
Core metrics paint a more positive picture: Core net income increased to
Key positives include improved NIM at
Peoples reported a net loss of
Core net income and core earnings per share1, non-GAAP measures, exclude non-recurring transactions of
Core pre-provision net revenue (PPNR) and core PPNR per share1, non-GAAP measures, which exclude acquisition related expenses, the provision for credit losses and the provision for credit losses on unfunded commitments from income before taxes, for the three months ended September 30, 2024 was
For the nine months ended September 30, 2024, net income was
Core net income and core earnings per share1, non-GAAP measures, totaled
Core pre-provision net revenue (PPNR) and core PPNR per share1, non-GAAP measures, for the nine months ended September 30, 2024 were
Merger with FNCB
Peoples acquired FNCB and its wholly-owned subsidiary FNCB Bank by merger on July 1 2024. The merger and acquisition method of accounting was used to account for the transaction with Peoples as the acquirer. The Company recorded the assets and liabilities of FNCB at their respective fair values as of July 1, 2024. The transaction was valued at approximately
At the time of the merger, FNCB contributed, after fair value purchase accounting adjustments, approximately
Subsequent to the FNCB merger, through September 30, 2024, the Company sold
The Company incurred non-recurring expenses of
The Company's financial results for any periods ended prior to July 1, 2024 reflect Peoples results only on a standalone basis. As a result of this factor and the below listed adjustments related to the FNCB merger, the Company's financial results for the third quarter of 2024 may not be directly comparable to prior reported periods. The following schedule highlights specific merger related activity for the three and nine months ended September 30, 2024:
Schedule of Merger & Acquisition Cost and Non-Recurring Merger Related Activity (Unaudited)
Quarter Ended | Nine Months Ended | |||||
(dollars in thousands) | September 30, 2024 | September 30, 2024 | ||||
M&A costs and merger related expenses | $ | 9,653 | $ | 11,210 | ||
ACL provision for FNCB acquired legacy loans | 14,328 | 14,328 | ||||
Total net M&A costs and non-recurring transaction costs | $ | 23,981 | $ | 25,538 |
NOTABLES IN THE QUARTER
- Allowance for credit losses to loans, net increased to
0.97% at September 30, 2024 from0.81% and0.80% at June 30, 2024 and September 30, 2023, respectively. - Return on average equity for the three months ended September 30, 2024 was negative
3.58% compared to8.05% for the three months ended September 30, 2023; excluding the non-recurring charges, core return on average equity1, a non-GAAP measure, was13.61% for the three months ended September 30, 2024 compared to8.91% for the three months ended September 30, 2023. - Return on average assets for the three months ended September 30, 2024 was negative
0.33% compared to0.72% for the three months ended September 30, 2023; excluding the non-recurring charges, core return on average assets1, a non-GAAP measure, was1.24% for the three months ended September 30, 2024 compared to0.79% for the three months ended September 30, 2023. - Tangible book value per common share1, a non-GAAP measure, decreased to
per share at September 30, 2024 compared to$36.24 per share at June 30, 2024; this decrease was primarily due to the impact of loan marks associated with the FNCB merger and the net loss incurred for the third quarter of 2024.$39.31 - At September 30, 2024, the Company had
in cash and cash equivalents, an increase of$285.5 million from December 31, 2023. Additional contingent sources of available liquidity total$98.1 million and include lines of credit at the Federal Reserve Bank and Federal Home Loan Bank of$2.2 billion Pittsburgh (FHLB), brokered deposit capacity and unencumbered securities that may be pledged as collateral. The Company's cash and cash equivalents balance and available liquidity represent47.2% of total assets and54.5% of total deposits. - At September 30, 2024, estimated total insured deposits were approximately
, or$3.1 billion 66.2% of total deposits. Included in the uninsured total at September 30, 2024 is of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and$372.5 million of affiliate company deposits. Total insured and collateralized deposits represent$1.7 million 74.3% of total deposits at September 30, 2024.
INCOME STATEMENT REVIEW
- NIM, calculated on a fully taxable equivalent basis, a non-GAAP measure1, for the three months ended September 30, 2024 was
3.26% , an increase of 97 basis points compared to2.29% for the prior quarter and an increase of 82 basis points when compared to2.44% for the corresponding three month period in 2023. The increase in tax-equivalent NIM from the year ago period was primarily from a higher volume of earning assets and the net accretion impact of purchase accounting marks on loans, deposits and borrowings acquired and assumed in the FNCB merger, which totaled of net interest income, and represented 30 basis points of tax-equivalent NIM.$3.7 million - The tax-equivalent yield on interest-earning assets, a non-GAAP measure2 , increased 105 basis points to
5.63% during the three months ended September 30, 2024 from4.58% during the three months ended June 30, 2024, and increased 123 basis points when compared to4.40% for the three months ended September 30, 2023. - The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 12 basis points to
2.89% for the three months ended September 30, 2024 when compared to3.01% during the three months ended June 30, 2024 and increased 28 basis points compared to2.61% in the prior year period. - The cost of interest-bearing deposits decreased 16 basis points during the three months ended September 30, 2024 to
2.76% from2.92% in the three months ended June 30, 2024, and increased 23 basis points compared to2.53% for the three months ended September 30, 2023. - The cost of total deposits for the three months ended September 30, 2024 was
2.33% , a decrease of 1 basis point from2.34% for the three months ended June 30, 2024, an increase of 33 basis points compared to2.00% for the three months ended September 30, 2023.
Third Quarter 2024 Results – Comparison to Prior-Year Quarter
Tax-equivalent net interest income, a non-GAAP measure3, for the three months ended September 30, increased
Higher interest income was the result of increases in the volume of earning assets due to the FNCB merger and net accretion from purchase accounting loan marks which totaled
The increase in interest expense in the three months ended September 30, 2024 was
Average interest-bearing liabilities increased
For the three months ended September 30, 2024,
Noninterest income for the three months ended September 30, 2024 and 2023 was
Noninterest expense increased
The income tax benefit was
Nine-Month Results – Comparison to Prior Year First Nine months
The tax-equivalent NIM, a non-GAAP measure4, for the nine months ended September 30, 2024 was
For the nine months ended September 30, 2024, a provision for credit losses of
Noninterest income was
Noninterest expense for the nine months ended September 30, 2024, was
BALANCE SHEET REVIEW
At September 30, 2024, total assets, loans and deposits were
Loan growth for the nine months ended September 30, 2024 was
Total investments were
Total deposits increased
The Company's deposit base consisted of
In addition to deposit gathering and current long-term debt, we have additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window and Borrower-in-Custody program, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities. At September 30, 2024, the Company had
The Company maintained its well capitalized position at September 30, 2024. Stockholders' equity equaled
Tangible book value5, a non-GAAP measure, decreased to
ASSET QUALITY REVIEW
Nonperforming assets were
During the nine months ended September 30, 2024, net charge-offs were
About Peoples:
Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving
In addition to evaluating its results of operations in accordance with
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; the effects of any recession in
In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations and, specifically, the FNCB merger may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder - or take longer - to achieve than expected, if they are achieved at all. As a regulated financial institution, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.
The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
[TABULAR MATERIAL FOLLOWS]
Summary Data Peoples Financial Services Corp. Five Quarter Trend (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||
Key performance data: | ||||||||||||||||
Share and per share amounts: | ||||||||||||||||
Net (loss) income | $ | (0.43) | $ | 0.46 | $ | 0.49 | $ | 0.51 | $ | 0.95 | ||||||
Core net income (1) | $ | 1.64 | $ | 0.59 | $ | 0.55 | $ | 0.61 | $ | 1.05 | ||||||
Core net income (PPNR) (1) | $ | 1.83 | $ | 0.73 | $ | 0.79 | $ | 0.95 | $ | 1.23 | ||||||
Cash dividends declared | $ | 0.62 | $ | 0.41 | $ | 0.41 | $ | 0.41 | $ | 0.41 | ||||||
Book value | $ | 47.53 | $ | 48.29 | $ | 48.18 | $ | 48.35 | $ | 46.07 | ||||||
Tangible book value (1) | $ | 36.24 | $ | 39.31 | $ | 39.20 | $ | 39.35 | $ | 37.07 | ||||||
Market value: | ||||||||||||||||
High | $ | 50.49 | $ | 46.25 | $ | 48.84 | $ | 49.99 | $ | 48.19 | ||||||
Low | $ | 41.44 | $ | 36.26 | $ | 38.09 | $ | 38.58 | $ | 40.04 | ||||||
Closing | $ | 46.88 | $ | 45.54 | $ | 43.11 | $ | 48.70 | $ | 40.10 | ||||||
Market capitalization | $ | 468,549 | $ | 321,388 | $ | 304,238 | $ | 342,889 | $ | 282,338 | ||||||
Common shares outstanding | 9,994,648 | 7,057,258 | 7,057,258 | 7,040,852 | 7,040,852 | |||||||||||
Selected ratios: | ||||||||||||||||
Return on average stockholders' equity | (3.58) | % | 3.87 | % | 4.09 | % | 4.40 | % | 8.05 | % | ||||||
Core return on average stockholders' equity (1) | 13.61 | % | 5.00 | % | 4.59 | % | 5.26 | % | 8.91 | % | ||||||
Return on average tangible stockholders' equity | (4.67) | % | 4.76 | % | 5.02 | % | 5.46 | % | 9.95 | % | ||||||
Core return on average tangible stockholders' equity (1) | 17.77 | % | 6.14 | % | 5.64 | % | 6.53 | % | 11.01 | % | ||||||
Return on average assets | (0.33) | % | 0.37 | % | 0.38 | % | 0.38 | % | 0.72 | % | ||||||
Core return on average assets (1) | 1.24 | % | 0.47 | % | 0.43 | % | 0.46 | % | 0.79 | % | ||||||
Stockholders' equity to total assets | 8.86 | % | 9.42 | % | 9.27 | % | 9.10 | % | 8.48 | % | ||||||
Efficiency ratio (1)(2) | 53.14 | % | 74.49 | % | 75.77 | % | 69.94 | % | 63.50 | % | ||||||
Nonperforming assets to loans, net, and foreclosed assets | 0.53 | % | 0.25 | % | 0.27 | % | 0.17 | % | 0.13 | % | ||||||
Nonperforming assets to total assets | 0.41 | % | 0.20 | % | 0.21 | % | 0.13 | % | 0.10 | % | ||||||
Net charge-offs to average loans, net | 0.01 | % | 0.01 | % | 0.00 | % | 0.39 | % | 0.01 | % | ||||||
Allowance for credit losses to loans, net | 0.97 | % | 0.81 | % | 0.79 | % | 0.77 | % | 0.80 | % | ||||||
Interest-bearing assets yield (FTE) (3) | 5.63 | % | 4.58 | % | 4.56 | % | 4.49 | % | 4.40 | % | ||||||
Cost of funds | 2.89 | % | 3.01 | % | 2.96 | % | 2.86 | % | 2.61 | % | ||||||
Net interest spread (FTE) (3) | 2.74 | % | 1.57 | % | 1.60 | % | 1.63 | % | 1.79 | % | ||||||
Net interest margin (FTE) (3) | 3.26 | % | 2.29 | % | 2.29 | % | 2.30 | % | 2.44 | % |
(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 available for sale. |
(3) | Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of |
Peoples Financial Services Corp. Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | ||||||
Sept 30 | Sept 30 | |||||
Nine months ended | 2024 | 2023 | ||||
Interest income: | ||||||
Interest and fees on loans: | ||||||
Taxable | $ | 127,859 | $ | 95,283 | ||
Tax-exempt | 5,116 | 4,205 | ||||
Interest and dividends on investment securities: | ||||||
Taxable | 8,561 | 5,973 | ||||
Tax-exempt | 1,153 | 1,210 | ||||
Dividends | 59 | 4 | ||||
Interest on interest-bearing deposits in other banks | 632 | 190 | ||||
Interest on federal funds sold | 2,277 | 2,914 | ||||
Total interest income | 145,657 | 109,779 | ||||
Interest expense: | ||||||
Interest on deposits | 63,216 | 39,805 | ||||
Interest on short-term borrowings | 1,444 | 1,590 | ||||
Interest on long-term debt | 1,929 | 569 | ||||
Interest on subordinated debt | 1,330 | 1,330 | ||||
Interest on junior subordinated debt | 260 | |||||
Total interest expense | 68,179 | 43,294 | ||||
Net interest income | 77,478 | 66,485 | ||||
Provision for (credit to) credit losses | 15,762 | (1,103) | ||||
Net interest income after provision for (credit to) credit losses | 61,716 | 67,588 | ||||
Noninterest income: | ||||||
Service charges, fees, commissions and other | 7,304 | 5,847 | ||||
Merchant services income | 598 | 542 | ||||
Commissions and fees on fiduciary activities | 1,717 | 1,691 | ||||
Wealth management income | 1,486 | 1,177 | ||||
Mortgage banking income | 263 | 295 | ||||
Increase in cash surrender value of life insurance | 1,116 | 790 | ||||
Interest rate swap revenue | 25 | 512 | ||||
Net gains (losses) on equity investment securities | 155 | (17) | ||||
Net gains on sale of investment securities available for sale | 1 | 81 | ||||
Total noninterest income | 12,665 | 10,918 | ||||
Noninterest expense: | ||||||
Salaries and employee benefits expense | 30,459 | 26,346 | ||||
Net occupancy and equipment expense | 15,745 | 12,678 | ||||
Acquisition related expenses | 11,210 | 990 | ||||
Amortization of intangible assets | 1,665 | 86 | ||||
Net gains on sale of other real estate owned | (18) | |||||
Other expenses | 12,649 | 10,140 | ||||
Total noninterest expense | 71,728 | 50,222 | ||||
Income before income taxes | 2,653 | 28,284 | ||||
Provision for income tax expense | 242 | 4,534 | ||||
Net income | $ | 2,411 | $ | 23,750 | ||
Other comprehensive income (loss) : | ||||||
Unrealized gains (losses) on investment securities available for sale | $ | 12,744 | $ | (4,690) | ||
Reclassification adjustment for gains on available for sale securities included in net income | (1) | (81) | ||||
Change in derivative fair value | (185) | 826 | ||||
Income tax expense (benefit) related to other comprehensive income (loss) | 2,748 | (851) | ||||
Other comprehensive income (loss), net of income tax expense (benefit) | 9,810 | (3,094) | ||||
Comprehensive income | $ | 12,221 | $ | 20,656 | ||
Share and per share amounts: | ||||||
Net income - basic | $ | 0.30 | $ | 3.33 | ||
Net income - diluted | 0.30 | 3.31 | ||||
Cash dividends declared | 1.44 | 1.23 | ||||
Average common shares outstanding - basic | 8,039,734 | 7,130,506 | ||||
Average common shares outstanding - diluted | 8,094,036 | 7,165,570 |
Peoples Financial Services Corp. Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | |||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | |||||||||||
Three months ended | 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans: | |||||||||||||||
Taxable | $ | 59,412 | $ | 34,406 | $ | 34,041 | $ | 33,730 | $ | 33,095 | |||||
Tax-exempt | 2,299 | 1,399 | 1,418 | 1,423 | 1,411 | ||||||||||
Interest and dividends on investment securities: | |||||||||||||||
Taxable | 4,739 | 1,904 | 1,918 | 1,939 | 1,920 | ||||||||||
Tax-exempt | 411 | 371 | 371 | 372 | 375 | ||||||||||
Dividends | 55 | 2 | 2 | ||||||||||||
Interest on interest-bearing deposits in other banks | 397 | 115 | 120 | 145 | 91 | ||||||||||
Interest on federal funds sold | 971 | 179 | 1,127 | 2,463 | 1,873 | ||||||||||
Total interest income | 68,284 | 38,376 | 38,997 | 40,072 | 38,765 | ||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 26,398 | 18,114 | 18,704 | 18,756 | 16,481 | ||||||||||
Interest on short-term borrowings | 550 | 633 | 262 | 330 | 291 | ||||||||||
Interest on long-term debt | 1,389 | 269 | 270 | 273 | 273 | ||||||||||
Interest on subordinated debt | 443 | 444 | 443 | 444 | 443 | ||||||||||
Interest on junior subordinated debt | 260 | ||||||||||||||
Total interest expense | 29,040 | 19,460 | 19,679 | 19,803 | 17,488 | ||||||||||
Net interest income | 39,244 | 18,916 | 19,318 | 20,269 | 21,277 | ||||||||||
Provision for (credit to) credit losses | 14,458 | 596 | 708 | 1,669 | (166) | ||||||||||
Net interest income after provision for (credit to) credit losses | 24,786 | 18,320 | 18,610 | 18,600 | 21,443 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges, fees, commissions and other | 3,384 | 1,885 | 2,036 | 1,881 | 1,900 | ||||||||||
Merchant services income | 223 | 260 | 115 | 151 | 170 | ||||||||||
Commissions and fees on fiduciary activities | 649 | 517 | 551 | 528 | 606 | ||||||||||
Wealth management income | 708 | 416 | 361 | 399 | 393 | ||||||||||
Mortgage banking income | 84 | 87 | 92 | 95 | 87 | ||||||||||
Increase in cash surrender value of life insurance | 551 | 286 | 279 | 277 | 270 | ||||||||||
Interest rate swap revenue | (53) | 102 | (24) | (122) | 266 | ||||||||||
Net gains (losses) on investment equity securities | 175 | (12) | (8) | 6 | |||||||||||
Net gains on sale of investment securities available for sale | 1 | ||||||||||||||
Total noninterest income | 5,722 | 3,541 | 3,402 | 3,215 | 3,692 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits expense | 13,170 | 8,450 | 8,839 | 8,939 | 8,784 | ||||||||||
Net occupancy and equipment expense | 6,436 | 4,576 | 4,725 | 4,468 | 4,298 | ||||||||||
Acquisition related expenses | 9,653 | 1071 | 486 | 826 | 869 | ||||||||||
Amortization of intangible assets | 1,665 | 19 | 29 | ||||||||||||
Net gains on sale of other real estate | (18) | ||||||||||||||
Other expenses | 4,578 | 4,061 | 4,018 | 3,346 | 3,092 | ||||||||||
Total noninterest expense | 35,502 | 18,158 | 18,068 | 17,598 | 17,054 | ||||||||||
Income before income taxes | (4,994) | 3,703 | 3,944 | 4,217 | 8,081 | ||||||||||
Income tax (benefit) expense | (657) | 421 | 478 | 587 | 1,335 | ||||||||||
Net (loss) income | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | |||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gain (loss) on investment securities available for sale | $ | 15,167 | $ | 18 | $ | (2,441) | $ | 19,494 | $ | (10,378) | |||||
Reclassification adjustment for gains on available for sale securities included in net income | (1) | ||||||||||||||
Change in benefit plan liabilities | 1,129 | ||||||||||||||
Change in derivative fair value | (1,424) | 160 | 1,079 | (1,650) | 747 | ||||||||||
Income tax expense (benefit) related to other comprehensive income (loss) | 3,008 | 38 | (298) | 3,894 | (2,074) | ||||||||||
Other comprehensive income (loss), net of income tax expense (benefit) | 10,734 | 140 | (1,064) | 15,079 | (7,557) | ||||||||||
Comprehensive income (loss) | $ | 6,397 | $ | 3,422 | $ | 2,402 | $ | 18,709 | $ | (811) | |||||
Share and per share amounts: | |||||||||||||||
Net income - basic | $ | (0.43) | $ | 0.47 | $ | 0.49 | $ | 0.52 | $ | 0.95 | |||||
Net income - diluted | (0.43) | 0.46 | 0.49 | 0.51 | 0.95 | ||||||||||
Cash dividends declared | 0.62 | 0.41 | 0.41 | 0.41 | 0.41 | ||||||||||
Average common shares outstanding - basic | 9,987,627 | 7,057,258 | 7,052,912 | 7,040,852 | 7,088,745 | ||||||||||
Average common shares outstanding - diluted | 10,044,449 | 7,114,115 | 7,102,112 | 7,091,015 | 7,120,685 |
Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||||||||
Average | Interest Income/ | Yield/ | Average | Interest Income/ | Yield/ | |||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
Assets: | ||||||||||||||||||
Earning assets: | ||||||||||||||||||
Loans: | ||||||||||||||||||
Taxable | $ | 3,790,138 | $ | 59,412 | 6.24 | % | $ | 2,627,700 | $ | 33,095 | 5.00 | % | ||||||
Tax-exempt | 278,496 | 2,910 | 4.16 | 226,628 | 1,786 | 3.13 | ||||||||||||
Total loans | 4,068,634 | 62,322 | 6.09 | 2,854,328 | 34,881 | 4.85 | ||||||||||||
Investments: | ||||||||||||||||||
Taxable | 611,032 | 4,794 | 3.12 | 454,727 | 1,920 | 1.68 | ||||||||||||
Tax-exempt | 89,532 | 520 | 2.31 | 87,731 | 475 | 2.15 | ||||||||||||
Total investments | 700,564 | 5,314 | 3.02 | 542,458 | 2,395 | 1.75 | ||||||||||||
Interest-bearing deposits | 10,820 | 150 | 5.55 | 6,893 | 91 | 5.24 | ||||||||||||
Federal funds sold | 92,171 | 1,218 | 5.26 | 134,583 | 1,873 | 5.52 | ||||||||||||
Total earning assets | 4,872,189 | 69,004 | 5.63 | % | 3,538,262 | 39,240 | 4.40 | % | ||||||||||
Less: allowance for credit losses | 37,535 | 23,691 | ||||||||||||||||
Other assets | 456,540 | 215,472 | ||||||||||||||||
Total assets | $ | 5,291,194 | $ | 69,004 | $ | 3,730,043 | $ | 39,240 | ||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
Money market accounts | $ | 906,842 | $ | 8,231 | 3.61 | % | $ | 697,387 | $ | 5,945 | 3.38 | % | ||||||
Interest-bearing demand and NOW accounts | 1,414,228 | 6,888 | 1.94 | 800,978 | 4,335 | 2.15 | ||||||||||||
Savings accounts | 518,038 | 3,420 | 2.63 | 462,468 | 272 | 0.23 | ||||||||||||
Time deposits less than | 687,511 | 4,637 | 2.68 | 412,705 | 4,234 | 4.07 | ||||||||||||
Time deposits | 275,786 | 3,222 | 4.65 | 208,153 | 1,695 | 3.23 | ||||||||||||
Total interest-bearing deposits | 3,802,405 | 26,398 | 2.76 | 2,581,691 | 16,481 | 2.53 | ||||||||||||
Short-term borrowings | 43,895 | 550 | 4.98 | 21,759 | 291 | 5.31 | ||||||||||||
Long-term debt | 111,804 | 1,389 | 4.94 | 25,000 | 273 | 4.33 | ||||||||||||
Subordinated debt | 33,000 | 443 | 5.34 | 33,000 | 443 | 5.33 | ||||||||||||
Junior subordinated debt | 8,000 | 260 | 12.93 | |||||||||||||||
Total borrowings | 196,699 | 2,642 | 5.34 | 79,759 | 1,007 | 5.01 | ||||||||||||
Total interest-bearing liabilities | 3,999,104 | 29,040 | 2.89 | 2,661,450 | 17,488 | 2.61 | ||||||||||||
Noninterest-bearing deposits | 713,776 | 688,301 | ||||||||||||||||
Other liabilities | 96,177 | 47,788 | ||||||||||||||||
Stockholders' equity | 482,137 | 332,504 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 5,291,194 | $ | 3,730,043 | ||||||||||||||
Net interest income/spread | $ | 39,964 | 2.74 | % | $ | 21,752 | 1.79 | % | ||||||||||
Net interest margin | 3.26 | % | 2.44 | % | ||||||||||||||
Tax-equivalent adjustments: | ||||||||||||||||||
Loans | $ | 611 | $ | 375 | ||||||||||||||
Investments | 109 | 100 | ||||||||||||||||
Total adjustments | $ | 720 | $ | 475 |
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 |
Peoples Financial Services Corp. Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis) | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||||||||
Average | Interest Income/ | Yield/ | Average | Interest Income/ | Yield/ | ||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
Assets: | |||||||||||||||||
Earning assets: | |||||||||||||||||
Loans: | |||||||||||||||||
Taxable | $ | 3,022,988 | $ | 127,859 | 5.65 | % | $ | 2,596,848 | $ | 95,283 | 4.91 | % | |||||
Tax-exempt | 242,293 | 6,476 | 3.57 | 225,178 | 5,323 | 3.16 | |||||||||||
Total loans | 3,265,281 | 134,335 | 5.50 | 2,822,026 | 100,606 | 4.77 | |||||||||||
Investments: | |||||||||||||||||
Taxable | 501,100 | 8,620 | 2.30 | 474,425 | 5,977 | 1.68 | |||||||||||
Tax-exempt | 87,612 | 1,459 | 2.22 | 92,111 | 1,532 | 2.22 | |||||||||||
Total investments | 588,712 | 10,079 | 2.29 | 566,536 | 7,509 | 1.77 | |||||||||||
Interest-bearing deposits | 9,541 | 385 | 5.39 | 5,004 | 190 | 5.08 | |||||||||||
Federal funds sold | 61,635 | 2,524 | 5.47 | 72,098 | 2,914 | 5.40 | |||||||||||
Total earning assets | 3,925,169 | 147,323 | 5.01 | % | 3,465,664 | 111,219 | 4.29 | % | |||||||||
Less: allowance for credit losses | 27,660 | 24,711 | |||||||||||||||
Other assets | 294,186 | 211,537 | |||||||||||||||
Total assets | $ | 4,191,695 | $ | 147,323 | $ | 3,652,490 | $ | 111,219 | |||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Money market accounts | $ | 792,391 | $ | 22,116 | 3.73 | % | $ | 694,478 | $ | 15,459 | 2.98 | % | |||||
Interest-bearing demand and NOW accounts | 977,722 | 16,125 | 2.20 | 768,277 | 10,661 | 1.86 | |||||||||||
Savings accounts | 450,161 | 3,975 | 1.18 | 485,985 | 727 | 0.20 | |||||||||||
Time deposits less than | 475,194 | 17,778 | 5.00 | 327,810 | 8,980 | 3.66 | |||||||||||
Time deposits | 271,765 | 3,222 | 1.58 | 195,450 | 3,978 | 2.72 | |||||||||||
Total interest-bearing deposits | 2,967,233 | 63,216 | 2.85 | 2,472,000 | 39,805 | 2.15 | |||||||||||
Short-term borrowings | 36,349 | 1,444 | 5.31 | 43,125 | 1,590 | 4.93 | |||||||||||
Long-term debt | 54,147 | 1,929 | 4.76 | 17,576 | 569 | 4.33 | |||||||||||
Subordinated debt | 33,000 | 1,330 | 5.38 | 33,000 | 1,330 | 5.39 | |||||||||||
Junior subordinated debt | 2,692 | 260 | 12.90 | ||||||||||||||
Total borrowings | 126,188 | 4,963 | 5.25 | 93,701 | 3,489 | 4.98 | |||||||||||
Total interest-bearing liabilities | 3,093,421 | 68,179 | 2.94 | 2,565,701 | 43,294 | 2.26 | |||||||||||
Noninterest-bearing deposits | 650,446 | 714,779 | |||||||||||||||
Other liabilities | 59,622 | 42,101 | |||||||||||||||
Stockholders' equity | 388,206 | 329,909 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 4,191,695 | $ | 3,652,490 | |||||||||||||
Net interest income/spread | $ | 79,144 | 2.07 | % | $ | 67,925 | 2.03 | % | |||||||||
Net interest margin | 2.69 | % | 2.62 | % | |||||||||||||
Tax-equivalent adjustments: | |||||||||||||||||
Loans | $ | 1,360 | $ | 1,118 | |||||||||||||
Investments | 306 | 322 | |||||||||||||||
Total adjustments | $ | 1,666 | $ | 1,440 |
Peoples Financial Services Corp. Details of Net Interest Income and Net Interest Margin (Unaudited) (In thousands, fully taxable equivalent basis) | ||||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
Three months ended | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Net interest income: | ||||||||||||||||
Interest income: | ||||||||||||||||
Loans, net: | ||||||||||||||||
Taxable | $ | 59,412 | $ | 34,406 | $ | 34,041 | $ | 33,730 | $ | 33,095 | ||||||
Tax-exempt | 2,910 | 1,771 | 1,795 | 1,801 | 1,786 | |||||||||||
Total loans, net | 62,322 | 36,177 | 35,836 | 35,531 | 34,881 | |||||||||||
Investments: | ||||||||||||||||
Taxable | 4,794 | 1,906 | 1,920 | 1,939 | 1,920 | |||||||||||
Tax-exempt | 520 | 469 | 470 | 471 | 475 | |||||||||||
Total investments | 5,314 | 2,375 | 2,390 | 2,410 | 2,395 | |||||||||||
Interest on interest-bearing balances in other banks | 150 | 115 | 120 | 145 | 91 | |||||||||||
Federal funds sold | 1,218 | 179 | 1,127 | 2,463 | 1,873 | |||||||||||
Total interest income | 69,004 | 38,846 | 39,473 | 40,549 | 39,240 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits | 26,398 | 18,114 | 18,704 | 18,756 | 16,481 | |||||||||||
Short-term borrowings | 550 | 633 | 262 | 330 | 291 | |||||||||||
Long-term debt | 1,389 | 269 | 270 | 273 | 273 | |||||||||||
Subordinated debt | 443 | 444 | 443 | 444 | 443 | |||||||||||
Junior subordinated debt | 260 | |||||||||||||||
Total interest expense | 29,040 | 19,460 | 19,679 | 19,803 | 17,488 | |||||||||||
Net interest income | $ | 39,964 | $ | 19,386 | $ | 19,794 | $ | 20,746 | $ | 21,752 | ||||||
Loans, net: | ||||||||||||||||
Taxable | 6.24 | % | 5.25 | % | 5.20 | % | 5.08 | % | 5.00 | % | ||||||
Tax-exempt | 4.16 | % | 3.20 | % | 3.20 | % | 3.14 | % | 3.13 | % | ||||||
Total loans, net | 6.09 | % | 5.09 | % | 5.04 | % | 4.93 | % | 4.85 | % | ||||||
Investments: | ||||||||||||||||
Taxable | 3.12 | % | 1.73 | % | 1.73 | % | 1.71 | % | 1.68 | % | ||||||
Tax-exempt | 2.31 | % | 2.19 | % | 2.18 | % | 2.14 | % | 2.15 | % | ||||||
Total investments | 3.02 | % | 1.80 | % | 1.80 | % | 1.78 | % | 1.75 | % | ||||||
Interest-bearing balances with banks | 5.55 | % | 5.28 | % | 5.35 | % | 5.51 | % | 5.24 | % | ||||||
Federal funds sold | 5.26 | % | 5.68 | % | 5.60 | % | 5.52 | % | 5.52 | % | ||||||
Total interest-earning assets | 5.63 | % | 4.58 | % | 4.56 | % | 4.49 | % | 4.40 | % | ||||||
Interest expense: | ||||||||||||||||
Deposits | 2.76 | % | 2.92 | % | 2.90 | % | 2.80 | % | 2.53 | % | ||||||
Short-term borrowings | 4.98 | % | 5.61 | % | 5.35 | % | 5.43 | % | 5.31 | % | ||||||
Long-term debt | 4.94 | % | 4.33 | % | 4.34 | % | 4.33 | % | 4.33 | % | ||||||
Subordinated debt | 5.34 | % | 5.41 | % | 5.40 | % | 5.34 | % | 5.33 | % | ||||||
Junior subordinated debt | 12.93 | % | ||||||||||||||
Total interest-bearing liabilities | 2.89 | % | 3.01 | % | 2.96 | % | 2.86 | % | 2.61 | % | ||||||
Net interest spread | 2.74 | % | 1.57 | % | 1.60 | % | 1.63 | % | 1.79 | % | ||||||
Net interest margin | 3.26 | % | 2.29 | % | 2.29 | % | 2.30 | % | 2.44 | % |
Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
At period end | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Assets: | ||||||||||||||||
Cash and due from banks | $ | 97,090 | $ | 41,234 | $ | 32,009 | $ | 33,524 | $ | 39,285 | ||||||
Interest-bearing balances in other banks | 10,286 | 8,722 | 8,259 | 9,141 | 9,550 | |||||||||||
Federal funds sold | 178,093 | 69,700 | 144,700 | 205,700 | ||||||||||||
Investment securities: | ||||||||||||||||
Available for sale | 562,486 | 385,240 | 394,413 | 398,927 | 382,227 | |||||||||||
Equity investments carried at fair value | 3,921 | 78 | 91 | 98 | 92 | |||||||||||
Held to maturity | 79,861 | 81,598 | 83,306 | 84,851 | 86,246 | |||||||||||
Total investments | 646,268 | 466,916 | 477,810 | 483,876 | 468,565 | |||||||||||
Loans held for sale | 803 | 300 | 250 | |||||||||||||
Loans | 4,069,683 | 2,869,553 | 2,858,412 | 2,849,897 | 2,870,969 | |||||||||||
Less: allowance for credit losses | 39,341 | 23,123 | 22,597 | 21,895 | 23,010 | |||||||||||
Net loans | 4,030,342 | 2,846,430 | 2,835,815 | 2,828,002 | 2,847,959 | |||||||||||
Goodwill | 76,958 | 63,370 | 63,370 | 63,370 | 63,370 | |||||||||||
Premises and equipment, net | 75,877 | 58,565 | 59,097 | 61,276 | 61,936 | |||||||||||
Bank owned life insurance | 87,401 | 49,955 | 49,673 | 49,397 | 49,123 | |||||||||||
Deferred tax assets | 33,078 | 14,460 | 14,241 | 13,770 | 17,956 | |||||||||||
Accrued interest receivable | 17,979 | 13,326 | 13,565 | 12,734 | 12,769 | |||||||||||
Other intangible assets, net | 35,907 | 19 | ||||||||||||||
Other assets | 70,056 | 53,077 | 45,299 | 42,249 | 49,567 | |||||||||||
Total assets | $ | 5,360,138 | $ | 3,616,055 | $ | 3,669,138 | $ | 3,742,289 | $ | 3,825,799 | ||||||
Liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 717,565 | $ | 620,971 | $ | 623,408 | $ | 644,683 | $ | 691,071 | ||||||
Interest-bearing | 3,920,299 | 2,443,988 | 2,580,530 | 2,634,354 | 2,674,012 | |||||||||||
Total deposits | 4,637,864 | 3,064,959 | 3,203,938 | 3,279,037 | 3,365,083 | |||||||||||
Short-term borrowings | 37,346 | 104,250 | 20,260 | 17,590 | 27,020 | |||||||||||
Long-term debt | 111,489 | 25,000 | 25,000 | 25,000 | 25,000 | |||||||||||
Subordinated debt | 33,000 | 33,000 | 33,000 | 33,000 | 33,000 | |||||||||||
Junior subordinated debt | 8,015 | |||||||||||||||
Accrued interest payable | 6,829 | 5,507 | 5,327 | 5,765 | 4,777 | |||||||||||
Other liabilities | 50,544 | 42,532 | 41,621 | 41,475 | 46,529 | |||||||||||
Total liabilities | 4,885,087 | 3,275,248 | 3,329,146 | 3,401,867 | 3,501,409 | |||||||||||
Stockholders' equity: | ||||||||||||||||
Common stock | 19,993 | 14,122 | 14,122 | 14,093 | 14,093 | |||||||||||
Capital surplus | 250,578 | 122,449 | 122,162 | 122,130 | 121,870 | |||||||||||
Retained earnings | 239,021 | 249,511 | 249,123 | 248,550 | 247,857 | |||||||||||
Accumulated other comprehensive loss | (34,541) | (45,275) | (45,415) | (44,351) | (59,430) | |||||||||||
Total stockholders' equity | 475,051 | 340,807 | 339,992 | 340,422 | 324,390 | |||||||||||
Total liabilities and stockholders' equity | $ | 5,360,138 | $ | 3,616,055 | $ | 3,669,138 | $ | 3,742,289 | $ | 3,825,799 |
Peoples Financial Services Corp. Loan and Asset Quality Data (Unaudited) (In thousands) | ||||||||||||||||
At period end | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||
Commercial | ||||||||||||||||
Taxable | $ | 616,369 | $ | 411,112 | $ | 400,439 | $ | 317,245 | $ | 351,545 | ||||||
Non-taxable | 273,710 | 220,893 | 224,083 | 226,470 | 229,635 | |||||||||||
Total | 890,079 | 632,005 | 624,522 | 543,715 | 581,180 | |||||||||||
Real estate | ||||||||||||||||
Commercial real estate | 2,309,588 | 1,793,652 | 1,794,086 | 1,863,118 | 1,846,350 | |||||||||||
Residential | 550,590 | 369,671 | 361,490 | 360,803 | 357,647 | |||||||||||
Total | 2,860,178 | 2,163,323 | 2,155,576 | 2,223,921 | 2,203,997 | |||||||||||
Consumer | ||||||||||||||||
Indirect Auto | 130,380 | 66,792 | 71,675 | 75,389 | 78,953 | |||||||||||
Consumer Other | 15,580 | 7,433 | 6,639 | 6,872 | 6,839 | |||||||||||
Total | 145,960 | 74,225 | 78,314 | 82,261 | 85,792 | |||||||||||
Equipment Financing | 173,466 | |||||||||||||||
Total | $ | 4,069,683 | $ | 2,869,553 | $ | 2,858,412 | $ | 2,849,897 | $ | 2,870,969 | ||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
At quarter end | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Nonperforming assets: | ||||||||||||||||
Nonaccrual/restructured loans | $ | 20,949 | $ | 7,116 | $ | 7,056 | $ | 3,961 | $ | 3,060 | ||||||
Accruing loans past due 90 days or more | 569 | 656 | 986 | 700 | ||||||||||||
Foreclosed assets | 27 | 27 | ||||||||||||||
Total nonperforming assets | $ | 21,545 | $ | 7,143 | $ | 7,712 | $ | 4,947 | $ | 3,760 | ||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
Three months ended | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance | $ | 23,123 | $ | 22,597 | $ | 21,895 | $ | 23,010 | $ | 23,218 | ||||||
Merger-related adjustments - Non PCD Loans | 14,328 | |||||||||||||||
Merger-related adjustments - PCD Loans | 1,842 | |||||||||||||||
Charge-offs | 534 | 135 | 108 | 2,808 | 65 | |||||||||||
Recoveries | 452 | 65 | 102 | 24 | 23 | |||||||||||
Provision for (credit to) credit losses | 130 | 596 | 708 | 1,669 | (166) | |||||||||||
Ending balance | $ | 39,341 | $ | 23,123 | $ | 22,597 | $ | 21,895 | $ | 23,010 |
Peoples Financial Services Corp. Deposit and Liquidity Detail (Unaudited) (In thousands) | |||||||||||||||
At period end | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||
Interest-bearing deposits: | |||||||||||||||
Money market accounts | $ | 1,018,575 | $ | 690,631 | $ | 759,305 | $ | 782,243 | $ | 767,868 | |||||
Interest-bearing demand and NOW accounts | 1,439,382 | 715,890 | 754,673 | 796,426 | 825,066 | ||||||||||
Savings accounts | 509,412 | 397,827 | 415,459 | 429,011 | 447,684 | ||||||||||
Time deposits less than | 824,791 | 504,879 | 517,009 | 505,409 | 512,646 | ||||||||||
Time deposits | 128,139 | 134,761 | 134,084 | 121,265 | 120,748 | ||||||||||
Total interest-bearing deposits | 3,920,299 | 2,443,988 | 2,580,530 | 2,634,354 | 2,674,012 | ||||||||||
Noninterest-bearing deposits | 717,565 | 620,971 | 623,408 | 644,683 | 691,071 | ||||||||||
Total deposits | $ | 4,637,864 | $ | 3,064,959 | $ | 3,203,938 | $ | 3,279,037 | $ | 3,365,083 |
September 30, 2024 | ||||||||||
At period end | Amount | Percent of Total | Number of accounts | Average Balance | ||||||
Deposit Detail: | ||||||||||
Retail | $ | 1,788,213 | 38.6 | % | 100,690 | $ | 18 | |||
Commercial | 1,544,269 | 33.3 | 19,496 | 79 | ||||||
Municipal | 913,822 | 19.7 | 2,578 | 354 | ||||||
Brokered | 391,560 | 8.4 | 50 | 7,831 | ||||||
Total Deposits | $ | 4,637,864 | 100.0 | 122,814 | $ | 38 | ||||
Uninsured | 1,566,710 | 33.8 | % | |||||||
Insured | 3,071,154 | 66.2 | ||||||||
December 31, 2023 | ||||||||||
At period end | Amount | Percent of Total | Number of accounts | Average Balance | ||||||
Deposit Detail: | ||||||||||
Retail | $ | 1,358,371 | 41.4 | % | 70,334 | $ | 19 | |||
Commercial | 1,096,547 | 33.4 | 13,433 | 82 | ||||||
Municipal | 563,124 | 17.2 | 1,856 | 303 | ||||||
Brokered | 260,995 | 8.0 | 24 | 10,875 | ||||||
Total Deposits | $ | 3,279,037 | 100.00 | 85,647 | $ | 38 | ||||
Uninsured | 883,530 | 26.9 | % | |||||||
Insured | 2,395,507 | 73.1 | ||||||||
Total Available | |||||||||
At September 30, 2024 | Total Available | Outstanding | for Future Liquidity | ||||||
FHLB advances | $ | 1,446,345 | $ | 477,617 | $ | 968,728 | |||
Federal Reserve - Discount Window & Bank Term Funding Program | 569,771 | 25,000 | 544,771 | ||||||
Correspondent bank lines of credit | 18,000 | 18,000 | |||||||
Other sources of liquidity: | |||||||||
Brokered deposits | 804,021 | 391,560 | 412,461 | ||||||
Unencumbered securities | 298,519 | 298,519 | |||||||
Total sources of liquidity | $ | 3,136,656 | $ | 894,177 | $ | 2,242,479 |
Peoples Financial Services Corp. Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
Average quarterly balances | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Assets: | ||||||||||||||||
Loans, net: | ||||||||||||||||
Taxable | $ | 3,790,138 | $ | 2,637,164 | $ | 2,632,554 | $ | 2,632,865 | $ | 2,627,700 | ||||||
Tax-exempt | 278,496 | 222,655 | 225,293 | 227,800 | 226,628 | |||||||||||
Total loans, net | 4,068,634 | 2,859,819 | 2,857,847 | 2,860,665 | 2,854,328 | |||||||||||
Investments: | ||||||||||||||||
Taxable | 611,032 | 443,146 | 446,996 | 450,533 | 454,727 | |||||||||||
Tax-exempt | 89,532 | 86,418 | 86,864 | 87,297 | 87,731 | |||||||||||
Total investments | 700,564 | 529,564 | 533,860 | 537,830 | 542,458 | |||||||||||
Interest-bearing balances with banks | 10,820 | 8,763 | 9,025 | 10,432 | 6,893 | |||||||||||
Federal funds sold | 92,171 | 12,672 | 80,955 | 176,983 | 134,583 | |||||||||||
Total interest-earning assets | 4,872,189 | 3,410,818 | 3,481,687 | 3,585,910 | 3,538,262 | |||||||||||
Other assets | 419,005 | 198,248 | 195,063 | 188,478 | 191,781 | |||||||||||
Total assets | $ | 5,291,194 | $ | 3,609,066 | $ | 3,676,750 | $ | 3,774,388 | $ | 3,730,043 | ||||||
Liabilities and stockholders' equity: | ||||||||||||||||
Deposits: | ||||||||||||||||
Interest-bearing | $ | 3,802,405 | $ | 2,496,298 | $ | 2,593,813 | $ | 2,661,156 | $ | 2,581,691 | ||||||
Noninterest-bearing | 713,776 | 620,256 | 616,610 | 651,182 | 688,301 | |||||||||||
Total deposits | 4,516,181 | 3,116,554 | 3,210,423 | 3,312,338 | 3,269,992 | |||||||||||
Short-term borrowings | 43,895 | 45,383 | 19,687 | 24,103 | 21,759 | |||||||||||
Long-term debt | 111,804 | 25,000 | 25,000 | 25,000 | 25,000 | |||||||||||
Subordinated debt | 33,000 | 33,000 | 33,000 | 33,000 | 33,000 | |||||||||||
Other liabilities | 96,177 | 48,630 | 47,688 | 52,760 | 47,788 | |||||||||||
Total liabilities | 4,801,057 | 3,268,567 | 3,335,798 | 3,447,201 | 3,397,539 | |||||||||||
Stockholders' equity | 482,137 | 340,499 | 340,952 | 327,187 | 332,504 | |||||||||||
Total liabilities and stockholders' equity | $ | 5,283,194 | $ | 3,609,066 | $ | 3,676,750 | $ | 3,774,388 | $ | 3,730,043 |
Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||
Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 | ||||||||||||
Three months ended | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||
Core net income per share: | ||||||||||||||||
Net (loss) income GAAP | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | ||||||
Adjustments: | ||||||||||||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | |||||||||||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,885 | |||||||||||||||
Add: Acquisition related expenses | 9,653 | 1,071 | 486 | 826 | 869 | |||||||||||
Less: Acquisition related expenses tax adjustment | 1,270 | 122 | 59 | 115 | 144 | |||||||||||
Core net income | $ | 16,489 | $ | 4,231 | $ | 3,893 | $ | 4,341 | $ | 7,471 | ||||||
Average common shares outstanding - diluted | 10,044,449 | 7,114,115 | 7,102,112 | 7,091,015 | 7,120,685 | |||||||||||
Core net income per share | $ | 1.64 | $ | 0.59 | $ | 0.55 | $ | 0.61 | $ | 1.05 | ||||||
Tangible book value: | ||||||||||||||||
Total stockholders' equity | $ | 475,051 | $ | 340,807 | $ | 339,992 | $ | 340,422 | $ | 324,390 | ||||||
Less: Goodwill | 76,958 | 63,370 | 63,370 | 63,370 | 63,370 | |||||||||||
Less: Other intangible assets, net | 35,907 | 19 | ||||||||||||||
Total tangible stockholders' equity | $ | 362,186 | $ | 277,437 | $ | 276,622 | $ | 277,052 | $ | 261,001 | ||||||
Common shares outstanding | 9,994,648 | 7,057,258 | 7,057,258 | 7,040,852 | 7,040,852 | |||||||||||
Tangible book value per share | $ | 36.24 | $ | 39.31 | $ | 39.20 | $ | 39.35 | $ | 37.07 | ||||||
Core return on average stockholders' equity: | ||||||||||||||||
Net (loss) income GAAP | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | ||||||
Adjustments: | ||||||||||||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | |||||||||||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,885 | |||||||||||||||
Add: Acquisition related expenses | 9,653 | 1,071 | 486 | 826 | 869 | |||||||||||
Less: Acquisition related expenses tax adjustment | 1,270 | 122 | 59 | 115 | 144 | |||||||||||
Core net income | $ | 16,489 | $ | 4,231 | $ | 3,893 | $ | 4,341 | $ | 7,471 | ||||||
Average stockholders' equity | $ | 482,137 | $ | 340,499 | $ | 340,952 | $ | 327,187 | $ | 332,504 | ||||||
Core return on average stockholders' equity | 13.61 | % | 5.00 | % | 4.59 | % | 5.26 | % | 8.91 | % | ||||||
Return on average tangible equity: | ||||||||||||||||
Net (loss) income GAAP | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | ||||||
Average stockholders' equity | $ | 482,137 | $ | 340,499 | $ | 340,952 | $ | 327,187 | $ | 332,504 | ||||||
Less: average intangibles | 113,032 | 63,370 | 63,370 | 63,380 | 63,404 | |||||||||||
Average tangible stockholders' equity | $ | 369,105 | $ | 277,129 | $ | 277,582 | $ | 263,807 | $ | 269,100 | ||||||
Return on average tangible stockholders' equity | (4.67) | % | 4.76 | % | 5.02 | % | 5.46 | % | 9.95 | % | ||||||
Core return on average tangible stockholders' equity: | ||||||||||||||||
Net (loss) income GAAP | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | ||||||
Adjustments: | ||||||||||||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | |||||||||||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,885 | |||||||||||||||
Add: Acquisition related expenses | 9,653 | 1,071 | 486 | 826 | 869 | |||||||||||
Less: Acquisition related expenses tax adjustment | 1,270 | 122 | 59 | 115 | 144 | |||||||||||
Core net income | $ | 16,489 | $ | 4,231 | $ | 3,893 | $ | 4,341 | $ | 7,471 | ||||||
Average stockholders' equity | $ | 482,137 | $ | 340,499 | $ | 340,952 | $ | 327,187 | $ | 332,504 | ||||||
Less: average intangibles | 113,032 | 63,370 | 63,370 | 63,380 | 63,404 | |||||||||||
Average tangible stockholders' equity | $ | 369,105 | $ | 277,129 | $ | 277,582 | $ | 263,807 | $ | 269,100 | ||||||
Core return on average tangible stockholders' equity | 17.77 | % | 6.14 | % | 5.64 | % | 6.53 | % | 11.01 | % | ||||||
Core return on average assets: | ||||||||||||||||
Net (loss) income GAAP | $ | (4,337) | $ | 3,282 | $ | 3,466 | $ | 3,630 | $ | 6,746 | ||||||
Adjustments: | ||||||||||||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | |||||||||||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,885 | |||||||||||||||
Add: Acquisition related expenses | 9,653 | 1,071 | 486 | 826 | 869 | |||||||||||
Less: Acquisition related expenses tax adjustment | 1,270 | 122 | 59 | 115 | 144 | |||||||||||
Core net income | $ | 16,489 | $ | 4,231 | $ | 3,893 | $ | 4,341 | $ | 7,471 | ||||||
Average assets | $ | 5,291,194 | $ | 3,609,066 | $ | 3,676,750 | $ | 3,774,388 | $ | 3,730,043 | ||||||
Core return on average assets | 1.24 | % | 0.47 | % | 0.43 | % | 0.46 | % | 0.79 | % | ||||||
Core pre-provision net revenue (PPNR) per share: | ||||||||||||||||
(Loss) income before taxes (GAAP) | $ | (4,994) | $ | 3,703 | $ | 3,944 | $ | 4,217 | $ | 8,081 | ||||||
Add: Acquisition related expenses | 9,653 | 1,071 | 486 | 826 | 869 | |||||||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | |||||||||||||||
Add: Provision for (credit to) credit losses | 130 | 596 | 708 | 1,669 | (166) | |||||||||||
Add: Provision for (credit to) credit losses on unfunded commitments | (785) | (197) | 487 | (2) | (12) | |||||||||||
Core PPNR (non-GAAP) | $ | 18,332 | $ | 5,173 | $ | 5,625 | $ | 6,710 | $ | 8,772 | ||||||
Average common shares outstanding-diluted | 10,044,449 | 7,114,115 | 7,102,112 | 7,091,015 | 7,120,685 | |||||||||||
Core PPNR per share (non-GAAP) | $ | 1.83 | $ | 0.73 | $ | 0.79 | $ | 0.95 | $ | 1.23 |
Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) | |||||||
Sept 30 | Sept 30 | ||||||
Nine months ended | 2024 | 2023 | |||||
Core net income per share: | |||||||
Net income GAAP | $ | 2,411 | $ | 23,750 | |||
Adjustments: | |||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | ||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,307 | ||||||
Less: Gain on sale of available for sale securities | 81 | ||||||
Add: Gain on sale of available for sale securities tax adjustment | 17 | ||||||
Add: Acquisition related expenses | 11,210 | 990 | |||||
Less: Acquisition related expenses tax adjustment | 1,023 | 159 | |||||
Core net income | $ | 25,619 | $ | 24,517 | |||
Average common shares outstanding - diluted | 8,094,036 | 7,165,570 | |||||
Core net income per share | $ | 3.17 | $ | 3.42 | |||
Core return on average stockholders' equity: | |||||||
Net income GAAP | $ | 2,411 | $ | 23,750 | |||
Adjustments: | |||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | ||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,307 | ||||||
Less: Gain on sale of available for sale securities | 81 | ||||||
Add: Gain on sale of available for sale securities tax adjustment | 17 | ||||||
Add: Acquisition related expenses | 11,210 | 990 | |||||
Less: Acquisition related expenses tax adjustment | 1,023 | 159 | |||||
Core net income | $ | 25,619 | $ | 24,517 | |||
Average stockholders' equity | 388,206 | 329,909 | |||||
Core return on average stockholders' equity | 13.27 | % | 14.99 | % | |||
Return on average tangible equity: | |||||||
Net income GAAP | $ | 2,411 | $ | 23,750 | |||
Average stockholders' equity | 388,206 | 329,909 | |||||
Less: average intangibles | 79,924 | 63,694 | |||||
Average tangible stockholders' equity | $ | 308,282 | $ | 266,215 | |||
Return on average tangible stockholders' equity | 1.57 | % | 17.99 | % | |||
Core return on average tangible stockholders' equity: | |||||||
Net income GAAP | $ | 2,411 | $ | 23,750 | |||
Adjustments: | |||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | ||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,307 | ||||||
Less: Gain on sale of available for sale securities | 81 | ||||||
Add: Gain on sale of available for sale securities tax adjustment | 17 | ||||||
Add: Acquisition related expenses | 11,210 | 990 | |||||
Less: Acquisition related expenses tax adjustment | 1,023 | 159 | |||||
Core net income | $ | 25,619 | $ | 24,517 | |||
Average stockholders' equity | 388,206 | 329,909 | |||||
Less: average intangibles | 79,924 | 63,694 | |||||
Average tangible stockholders' equity | $ | 308,282 | $ | 266,215 | |||
Core return on average tangible stockholders' equity | 16.71 | % | 18.57 | % | |||
Core return on average assets: | |||||||
Net income GAAP | $ | 2,411 | $ | 23,750 | |||
Adjustments: | |||||||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | ||||||
Less: ACL provision for FNCB acquired legacy loans tax adjustment | 1,307 | ||||||
Less: Gain on sale of available for sale securities | 81 | ||||||
Add: Gain on sale of available for sale securities tax adjustment | 17 | ||||||
Add: Acquisition related expenses | 11,210 | 990 | |||||
Less: Acquisition related expenses tax adjustment | 1,023 | 159 | |||||
Core net income | $ | 25,619 | $ | 24,517 | |||
Average assets | 4,191,695 | 3,652,490 | |||||
Core return on average assets | 1.23 | % | 1.35 | % | |||
Core pre-provision net revenue (PPNR) per share: | |||||||
Income before taxes (GAAP) | $ | 2,653 | $ | 28,284 | |||
Add: ACL provision for FNCB acquired legacy loans | 14,328 | ||||||
Add: Acquisition related expenses | 11,210 | 990 | |||||
Add: Provision for (credit to) credit losses | 1,434 | (1,103) | |||||
Add: Provision for (credit to) credit losses on unfunded commitments | (495) | (197) | |||||
Core PPNR (non-GAAP) | $ | 29,130 | $ | 27,974 | |||
Average common shares outstanding-diluted | 8,094,036 | 7,165,570 | |||||
Core PPNR per share (non-GAAP) | $ | 3.60 | $ | 3.90 |
Peoples Financial Services Corp. Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data)
| ||||||
The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three and nine months ended September 30, 2024 and 2023: | ||||||
Three months ended September 30 | 2024 | 2023 | ||||
Interest income (GAAP) | $ | 68,284 | $ | 38,765 | ||
Adjustment to FTE | 720 | 475 | ||||
Interest income adjusted to FTE (non-GAAP) | 69,004 | 39,240 | ||||
Interest expense | 29,040 | 17,488 | ||||
Net interest income adjusted to FTE (non-GAAP) | $ | 39,964 | $ | 21,752 | ||
Nine months ended September 30 | 2024 | 2023 | ||||
Interest income (GAAP) | $ | 145,657 | $ | 109,779 | ||
Adjustment to FTE | 1,666 | 1,440 | ||||
Interest income adjusted to FTE (non-GAAP) | 147,323 | 111,219 | ||||
Interest expense | 68,179 | 43,294 | ||||
Net interest income adjusted to FTE (non-GAAP) | $ | 79,144 | $ | 67,925 |
The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus | |||||||
Three months ended September 30 | 2024 | 2023 | |||||
Efficiency ratio (non-GAAP): | |||||||
Noninterest expense (GAAP) | $ | 35,502 | $ | 17,054 | |||
Less: Amortization of intangible assets expense | 1,665 | 29 | |||||
Less: Acquisition related expenses | 9,653 | 869 | |||||
Noninterest expense (non-GAAP) | 24,184 | 16,156 | |||||
Net interest income (GAAP) | 39,244 | 21,277 | |||||
Plus: Taxable equivalent adjustment | 720 | 475 | |||||
Noninterest income (GAAP) | 5,722 | 3,692 | |||||
Less: Net gains (losses) on equity securities | 175 | ||||||
Less: Gain (loss) on sale of available for sale securities | 1 | ||||||
Net interest income (FTE) plus noninterest income (non-GAAP) | $ | 45,510 | $ | 25,444 | |||
Efficiency ratio (non-GAAP) | 53.14 | % | 63.50 | % | |||
Nine months ended September 30 | 2024 | 2023 | |||||
Efficiency ratio (non-GAAP): | |||||||
Noninterest expense (GAAP) | $ | 71,728 | $ | 50,222 | |||
Less: Amortization of intangible assets expense | 1,665 | 86 | |||||
Less: Acquisition related expenses | 11,210 | 990 | |||||
Noninterest expense (non-GAAP) | 58,853 | 49,146 | |||||
Net interest income (GAAP) | 77,478 | 66,485 | |||||
Plus: Taxable equivalent adjustment | 1,666 | 1,440 | |||||
Noninterest income (GAAP) | 12,665 | 10,918 | |||||
Less: Net losses on equity securities | 155 | (17) | |||||
Less: Gains on sale of available for sale securities | 1 | 81 | |||||
Net interest income (FTE) plus noninterest income (non-GAAP) | $ | 91,653 | $ | 78,779 | |||
Efficiency ratio (non-GAAP) | 64.21 | % | 62.38 | % |
1 See reconciliation of non-GAAP financial measures on pg.19-21. |
2 See reconciliation of non-GAAP financial measures on pg.19-21. |
3 See reconciliation of non-GAAP financial measures on pg.19-21. |
4 See reconciliation of non-GAAP financial measures on pg.19-21. |
5 See reconciliation of non-GAAP financial measures on pg.19-21. |
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SOURCE Peoples Financial Services Corp.
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