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. "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 balan ...

NEWS RELEASE TO BUSINESS EDITOR: PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Fourth Quarter and Full Year 2025 Earnings Moosic, PA, January 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 ...

Core Viewpoint - Peoples Financial Services Corp. has declared a first quarter cash dividend of $0.6250 per share, marking a 1.2% increase from the previous quarter's dividend [1] Company Overview - Peoples Financial Services Corp. is the bank holding company for Peoples Security Bank and Trust Company, which operates 40 full-service community banking offices across Pennsylvania, New Jersey, and New York [2] - The bank serves retail and commercial customers, offering a wide range of financial products and services, and emphasizes direct access to senior management and friendly service [2]

Core Viewpoint - Thomas P. Tulaney will retire as President of Peoples Financial Services Corp. and the Bank effective April 3, 2026, after a brief tenure starting January 1, 2025, during which he focused on enhancing financial performance and shareholder value [1][2]. Leadership Transition - Following Tulaney's retirement, Gerard A. Champi, the current CEO, is expected to take over as President of both the Company and the Bank, pending review by the Nominating and Corporate Governance Committee [5]. Experience and Contributions - Tulaney has over 40 years of banking experience and has been instrumental in developing the Bank's brand, culture, and reputation, demonstrating professionalism and integrity throughout his career [3]. Future Role - Post-retirement, Tulaney will continue to serve as a Senior Advisor, assisting in leadership transition and maintaining involvement in customer relationships and community development [4]. Company Overview - Peoples Financial Services Corp. operates as a bank holding company for Peoples Security Bank and Trust Company, providing a range of financial products and services through 40 community banking offices across Pennsylvania, New Jersey, and New York [6].

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Financial Performance - For the nine months ended September 30, 2025, net income was $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the same period in 2024, reflecting a significant increase in net interest income[222]. - The company's net interest income for the nine months ended September 30, 2025, increased by $45.4 million to $122.9 million, primarily due to the FNCB merger and net accretion impact of $11.2 million[222]. - Noninterest income for the nine months ended September 30, 2025, was $18.0 million, an increase of $5.3 million from $12.7 million in the same period of 2024[222]. - For the three months ended September 30, 2025, net interest income increased by $1.9 million to $41.9 million compared to $40.0 million in 2024[233]. - Net interest income for the three months ended September 30, 2025, was $41,897 thousand, with a net interest margin of 3.54%[246]. Asset and Liability Management - Total assets increased by $68.0 million, or 1.8% annualized, totaling $5.2 billion at September 30, 2025[168]. - Total loans increased by $22.9 million, or 0.8% annualized, totaling $4.0 billion at September 30, 2025[179]. - Total deposits decreased by $117.8 million, or 3.6% annualized, to $4.3 billion at September 30, 2025, from $4.4 billion at December 31, 2024[191]. - Total borrowings increased by $149.0 million to $304.6 million at September 30, 2025, compared to $155.6 million at December 31, 2024[196]. - Total short-term borrowings increased by $60.4 million to $76.3 million at September 30, 2025[170]. Equity and Capital - Total stockholders' equity increased by $40.3 million to $509.3 million at September 30, 2025, largely due to net income[171]. - Stockholders' equity increased to $509.3 million, or $50.95 per share, as of September 30, 2025, up from $469.0 million, or $46.94 per share at December 31, 2024[217]. - The company's Tier 1 capital to total average assets ratio was 10.31% as of September 30, 2025, compared to 8.37% at December 31, 2024, indicating improved capital adequacy[220]. Interest Rate Risk Management - The company's interest rate risk position is well-matched for both rising and falling interest rate environments in the first twelve months, with a sustained falling rate presenting the greatest potential risk to NII over the long term[264]. - The ALCO reported that exposure to changing interest rates remained within established tolerance levels as of September 30, 2025[262]. - A 100 basis point increase in interest rates is projected to decrease NII by 0.1% for the 12 months ending September 30, 2025[267]. - The company’s strategy includes managing interest rate risk through the pricing and structure of loans and deposits, as well as off-balance sheet interest rate contracts[260]. - The ALCO regularly reviews interest rate shift scenarios, including changes of up to 400 basis points, to evaluate interest rate risk exposure[265]. Credit Quality - Total nonperforming assets decreased by $6.2 million to $16.8 million, or 0.33% of total assets, at September 30, 2025, down from $23.0 million, or 0.45% at December 31, 2024[185]. - Nonaccrual loans decreased by $8.1 million to $14.4 million at September 30, 2025, from $22.5 million at December 31, 2024[186]. - The allowance for credit losses was $39.8 million, or 0.99% of loans, net, at September 30, 2025, down from $41.8 million, or 1.05% at December 31, 2024[188]. - The provision for credit losses recorded a credit of $0.8 million in Q3 2025, a positive variance of $15.3 million compared to a provision of $14.5 million in Q3 2024[221]. Operational Efficiency - The efficiency ratio improved to 55.4% for the nine months ended September 30, 2025, compared to 64.2% for the same period in 2024[255]. - The efficiency ratio (non-GAAP) for the three months ended September 30, 2025, was 56.52%, an increase from 53.13% in 2024[230]. - Noninterest expense decreased by $6.8 million to $28.7 million for the three months ended September 30, 2025, from $35.5 million for the same period in 2024, primarily due to reduced acquisition-related expenses[253]. Investment Portfolio - Average investments for the nine months ended September 30, 2025, increased by $52.0 million, or 8.8%, to $640.7 million compared to the same period last year[176]. - The FTE yield on the investment portfolio increased by 82 basis points to 3.11% for the nine months ended September 30, 2025[176]. - The yield on the taxable investment portfolio increased by 91 basis points to 3.21% during the nine months ended September 30, 2025, resulting in an increase of $3.7 million in interest income[242]. Dividends and Shareholder Returns - The company declared dividends of $1.86 per share for the nine months ended September 30, 2025, up from $1.44 per share for the same period in 2024[218].

Core Viewpoint - Peoples Financial Services Corp. declared a fourth quarter cash dividend of $0.6175 per share, payable on December 15, 2025, to shareholders of record on November 28, 2025 [1]. Company Overview - Peoples Financial Services Corp. is the bank holding company for Peoples Security Bank and Trust Company, operating 39 full-service community banking offices across Pennsylvania, New Jersey, and New York [2]. - The bank offers a comprehensive range of financial products and services to individuals, businesses, not-for-profit organizations, and government entities, emphasizing direct access to senior management and friendly service [2]. Financial Performance - The company has reported its unaudited earnings for the third quarter and year-to-date 2025, indicating ongoing financial activities and performance metrics [6].

Core Insights - Peoples Financial Services Corp. reported a net income of $15.2 million, or $1.51 per diluted share for Q3 2025, a decrease from $17.0 million, or $1.68 per diluted share in Q2 2025, but a significant improvement from a net loss of $4.3 million in Q3 2024 [1][2][3] - For the nine months ended September 30, 2025, net income was $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the same period in 2024, driven by higher net interest income and noninterest income [2][20] Financial Performance - The return on average assets (ROAA) for Q3 2025 was 1.19%, down from 1.36% in Q2 2025, while the return on average equity (ROAE) was 12.02%, down from 13.87% in Q2 2025 [1][6] - Non-performing assets to total assets improved to 0.33% at September 30, 2025, compared to 0.34% at June 30, 2025, and 0.45% at December 31, 2024 [6][26] - Book value per common share increased to $50.95 at September 30, 2025, from $49.44 at June 30, 2025 [6][25] Income Statement Analysis - Net interest income for Q3 2025 increased to $41.9 million from $40.0 million in Q3 2024, despite a decrease in tax-equivalent interest income [7][8] - Noninterest income for Q3 2025 was $5.5 million, slightly down from $5.7 million in Q3 2024, impacted by a $0.6 million loss on the pending sale of administrative offices [12][18] - Noninterest expense decreased to $28.7 million in Q3 2025 from $35.5 million in Q3 2024, primarily due to a reduction in acquisition-related expenses [13][19] Balance Sheet Overview - Total assets were $5.2 billion, with total loans at $4.0 billion and total deposits at $4.3 billion as of September 30, 2025 [20][21] - Total loans increased by $22.9 million compared to December 31, 2024, with growth in commercial and residential real estate loans [21] - Total deposits decreased by $117.8 million, primarily due to reductions in brokered CDs [24] Asset Quality and Credit Losses - The allowance for credit losses was $39.8 million, or 0.99% of loans, net, at September 30, 2025, down from $41.8 million, or 1.05% at December 31, 2024 [27] - Net charge-offs totaled $1.1 million for the nine months ended September 30, 2025, with a credit to the provision for credit losses of $0.9 million [17][27] Capital Position - Stockholders' equity increased to $509.3 million, or $50.95 per share, at September 30, 2025, compared to $469.0 million, or $46.94 per share at December 31, 2024 [25][26] - Tangible book value per share rose to $40.43 at September 30, 2025, from $35.88 at December 31, 2024 [26]

Financial Performance - Net income for Q3 2025 was $15.2 million, or $1.51 per diluted share, down from $17.0 million, or $1.68 per diluted share in Q2 2025, and a net loss of $4.3 million in Q3 2024[2][3] - For the nine months ended September 30, 2025, net income increased to $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the same period in 2024[3] - Noninterest income for Q3 2025 was $5.5 million, slightly down from $5.7 million in Q3 2024, impacted by a $0.6 million loss on the pending sale of administrative offices[16] - Net income for the nine months ended September 30, 2025, was $47.211 million, a significant increase from $2.411 million in the same period of 2024[47] - Cash dividends declared increased to $1.86 per share in 2025 from $1.44 per share in 2024, marking a growth of approximately 29.2%[47] Interest Income and Expenses - Net interest income for Q3 2025 was $41.9 million, an increase of $1.9 million from $40.0 million in Q3 2024, driven by a decrease in interest expense[8] - Total interest income rose to $192.925 million for the nine months ended September 30, 2025, compared to $145.657 million in 2024, reflecting a year-over-year increase of approximately 32.3%[47] - Total interest income for Q3 2025 was $65,164,000, a decrease of 0.3% from $65,335,000 in Q2 2025[48] - The total interest expense for Q3 2025 was $23,981,000, an increase from $23,138,000 in Q2 2025, representing a rise of 3.6%[57] Asset Quality - Non-performing assets to total assets improved to 0.33% at September 30, 2025, compared to 0.45% at December 31, 2024[6] - A credit to the provision for credit losses of $0.9 million was recorded for the current year, compared to a provision of $15.8 million in the prior year, reflecting a reduction in nonperforming loans[22] - Nonperforming assets decreased to $16.8 million, or 0.42% of loans, net, at September 30, 2025, down from $23.0 million, or 0.58%, at December 31, 2024[34] Efficiency and Ratios - The efficiency ratio for Q3 2025 was 56.52%, compared to 53.14% for Q3 2024[10] - The efficiency ratio improved to 55.38% for the nine months ended September 30, 2025, compared to 64.21% for the same period in 2024[24] - The return on average stockholders' equity was 12.02% for the latest quarter, down from 13.87% in the previous quarter, reflecting a decrease of approximately 13.3%[46] Capital and Equity - The Company maintained a well-capitalized position with stockholders' equity of $509.3 million, or $50.95 per share, as of September 30, 2025[32] - Tangible book value increased to $40.43 per share at September 30, 2025, up from $35.88 per share at December 31, 2024[33] - Total stockholders' equity increased to $509,260,000 in Q3 2025 from $494,096,000 in Q2 2025, marking a growth of 2.4%[66] Loans and Deposits - Average loans decreased by $62.6 million for Q3 2025 compared to Q3 2024, while average investments decreased by $48.8 million[9][12] - Total deposits decreased by $117.8 million to $4.3 billion, primarily due to reductions in brokered CDs[29] - Total loans decreased from $4,068,634 million in September 30, 2024 to $4,006,026 million in September 30, 2025, a decline of about 1.54%[50] Employee and Operational Changes - Noninterest expense rose to $84.3 million, an increase of $12.6 million from the previous year, largely due to the FNCB merger and the addition of 195 full-time employees[24] - The company completed its merger with FNCB Bancorp, Inc. on July 1, 2024, contributing to the increase in net interest income and noninterest income[3]