Merger and Acquisition - On September 27, 2023, Peoples Financial Services Corp. entered into a merger agreement with FNCB Bancorp, Inc., with a fixed exchange ratio of 0.1460 shares of Peoples' common stock for each share of FNCB's common stock[144]. - The merger is expected to be completed in the first half of 2024, pending regulatory and shareholder approvals[145]. - The proposed merger with FNCB is expected to create a bank holding company with nearly $5.5 billion in assets and deliver 59% EPS accretion to Peoples' 2025 estimated EPS[219][220]. - Acquisition-related expenses totaled $1,000 thousand for the nine months ended September 30, 2023, reflecting costs associated with the proposed merger with FNCB[248]. Financial Performance - Net income for the nine months ended September 30, 2023, was $23.8 million, a decrease of 17.5% compared to $29.0 million for the same period in 2022[218]. - Quarterly net income for the three months ended September 30, 2023, was $6.7 million, a 32.3% decrease from $10.0 million in the comparable period of 2022[217]. - Noninterest income for the three months ended September 30, 2023, was $3,700 thousand, an increase of 11.3% from $3,300 thousand in the same quarter a year ago[243]. - Noninterest expense for the nine months ended September 30, 2023, was $50,200 thousand, an increase of 9.8% from $45,700 thousand for the same period in 2022[248]. - The provision for credit losses for the nine months ended September 30, 2023, recorded a credit of $1,100 thousand compared to a provision of $1,700 thousand in the prior year, indicating improved asset quality[242]. Asset and Loan Growth - Total assets increased by $272.3 million or 10.2% annualized, reaching $3.8 billion at September 30, 2023, compared to $3.6 billion at December 31, 2022[165]. - Total loans rose to $2.9 billion at September 30, 2023, an increase of $140.9 million from $2.7 billion at December 31, 2022[172]. - Commercial real estate loans increased by $136.5 million or 10.7% annualized, reaching $1.8 billion at September 30, 2023[173]. - Total loans for the nine months ended September 30, 2023, amounted to $2,822,026 thousand, up from $2,474,796 thousand in the prior year, representing a growth of 14.0%[238]. Deposits and Funding - Deposits increased by $318.5 million to $3.4 billion at September 30, 2023, driven by net growth in brokered deposits of $248.0 million[166]. - Total deposits increased by $318.5 million, or 14.0% annualized, to $3.4 billion as of September 30, 2023, compared to $3.0 billion at December 31, 2022[188]. - Interest-bearing deposits averaged $2.5 billion in 2023, an increase of $269.3 million or 16.3% annualized compared to $2.2 billion in 2022[192]. - The Company’s net noncore funding dependence ratio was 11.3% at September 30, 2023, indicating an increase in reliance on noncore funds compared to 9.6% at year-end 2022[205]. Interest Income and Expense - Total interest income of $111,219 thousand for the nine months ended September 30, 2023, compared to $81,092 thousand for the same period in 2022, marking a significant increase[238]. - Total interest expense increased to $17.5 million for the three months ended September 30, 2023, from $4.2 million in the same period of 2022[227]. - Net interest income adjusted to FTE for the nine months ended September 30, 2023, was $67.9 million, down from $72.7 million in 2022[222]. - The yield on the loan portfolio increased by 84 basis points to 4.77%, contributing an additional $16.7 million to interest income[232]. Economic Environment - The banking industry faced significant volatility in 2023, with notable bank failures leading to concerns about liquidity and deposit outflows[155]. - Core inflation was reported at 4.1% for the 12 months ended September 30, 2023, while the Consumer Price Index (CPI) increased by 3.7% during the same period[158]. - The Federal Open Market Committee (FOMC) raised the federal funds rate four times in 2023, totaling 525 basis points, which is expected to negatively impact the company's investment portfolio[159]. - Economic uncertainty may lead to reduced loan demand and increased loan delinquencies in the near term[163]. Interest Rate Risk Management - The interest rate risk position is more asset-sensitive as of September 30, 2023, compared to December 31, 2022, due to an increase in floating rate overnight federal funds sold[257]. - The Company utilizes various financial instruments, including interest rate swaps, to manage interest rate risk[253]. - The ALCO regularly reviews interest rate shift scenarios, including changes of up to 400 basis points[258]. - The economic value of equity is projected to decrease by 20.0% under a +400 basis points interest rate scenario[260].

Financial Performance - The company reported net income of $9.4 million or $1.31 per diluted share for Q2 2023, a slight increase of 0.8% compared to $9.4 million or $1.30 per share in Q2 2022[203]. - Peoples reported net income of $17.0 million, or $2.37 per diluted share for the six months ended June 30, 2023, a decrease of 10.4% compared to $19.0 million, or $2.63 per diluted share for the same period in 2022[205]. - Annualized return on average assets (ROA) was 1.04% for Q2 2023, down from 1.12% in Q2 2022; annualized return on average equity (ROE) was 11.42% for Q2 2023, compared to 11.71% for the same period in 2022[206]. Asset and Loan Growth - Total assets increased by $128.3 million or 7.3% annualized, reaching $3.7 billion at June 30, 2023, compared to $3.6 billion at December 31, 2022[152]. - Total loans rose to $2.8 billion at June 30, 2023, an increase of $113.1 million from $2.7 billion at December 31, 2022[152]. - Total loans increased to $2.8 billion at June 30, 2023, up $113.1 million from December 31, 2022, with a loan growth of $25.3 million in the second quarter[160]. - Commercial real estate loans rose by $84.5 million, or 10.0% annualized, to $1.8 billion at June 30, 2023, compared to $1.7 billion at December 31, 2022[161]. - Residential real estate loans increased by $18.2 million, or 11.1% annualized, to $348.9 million at June 30, 2023, driven by higher home equity loan activity[163]. Deposit Trends - Deposits increased by $182.9 million to $3.2 billion at June 30, 2023, driven by a $248.0 million rise in brokered deposits[153]. - Total deposits grew by $182.9 million, or 12.1% annualized, to $3.2 billion from $3.0 billion at December 31, 2022, with a significant increase in interest-bearing deposits[175]. Interest Rates and Income - The tax-equivalent yield on the investment portfolio increased by 11 basis points to 1.78% for the six months ended June 30, 2023, compared to 1.67% for the same period in 2022[157]. - Tax-equivalent net interest income decreased by $1.6 million to $22.6 million in Q2 2023 from $24.2 million in Q2 2022, with a net interest spread decreasing to 2.02% from 2.95%[214]. - Total interest expense increased by $12.5 million to $14.6 million for Q2 2023 from $2.2 million in Q2 2022, with the total cost of funds rising to 2.29% from 0.39%[216]. - Tax-equivalent yield on earning assets increased by 95 basis points to 4.23% in the six months ended June 30, 2023, compared to 3.28% in 2022, resulting in an increase in interest income of $13.5 million[221]. Credit Losses and Allowance - The allowance for credit losses was decreased by $3.0 million upon the adoption of the CECL model, resulting in a cumulative effect adjustment that increased stockholders' equity by $2.4 million, net of tax[140]. - The allowance for credit losses was $23.2 million, or 0.82% of loans, at June 30, 2023, compared to $27.5 million, or 1.01% of loans, at December 31, 2022[173]. - Loans charged-off, net of recoveries, for the six months ended June 30, 2023, were $34 thousand, significantly lower than $259 thousand for the same period last year[173]. - The provision for credit losses decreased by $2.2 million, partially offsetting the impact of higher operating expenses of $3.4 million[205]. Economic and Market Conditions - The Federal Open Market Committee increased the federal funds rate four times in 2023, totaling 525 basis points, which is expected to negatively impact loan demand and deposit flows[146]. - Real GDP increased at a seasonally adjusted annual rate of 2.4% during the three months ended June 30, 2023, reflecting increases in consumer spending and nonresidential fixed investment[149]. - The company continues to monitor balance sheet trends and liquidity needs in light of recent banking industry volatility and economic uncertainty[144]. Investment Portfolio - The investment portfolio decreased by $81.9 million or 17.1% to $395.8 million at June 30, 2023, primarily due to the sale of $65.6 million in securities[155]. - The company reported net unrealized losses of $47.6 million, net of deferred income taxes, at June 30, 2023, compared to $52.0 million at December 31, 2022[158]. - The net unrealized losses on the available-for-sale investment securities portfolio were $60.6 million as of June 30, 2023[191]. Capital and Equity - At June 30, 2023, stockholders' equity totaled $331.8 million or $46.53 per share, an increase from $315.4 million or $44.06 per share at December 31, 2022[199]. - The Bank's Tier 1 capital to total average assets was 9.61% at June 30, 2023, compared to 9.69% at December 31, 2022, meeting all capital adequacy requirements[202]. Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2023 was $3.6 million, a decrease of $0.3 million or 8.5% from $3.9 million in the same quarter a year ago[232]. - Noninterest expense increased $1.1 million or 7.2% to $16.6 million for the three months ended June 30, 2023, from $15.5 million for the same period a year ago[235]. - Noninterest expense for the six months ended June 30, 2023 was $33.2 million, an increase of $3.4 million from $29.8 million for the same period in 2022[237]. Interest Rate Risk Management - The ALCO reported that exposure to changing interest rates over the simulation horizons remained within tolerance levels established by the Company as of June 30, 2023[244]. - The projected net interest income for the 12 months ending June 30, 2023, would decrease by 0.7% with a 100 basis point increase in interest rates[249]. - The Company’s exposure to changing interest rates remains within established tolerance levels, with simulations indicating stability in net interest income[244]. - The Company has transitioned its LIBOR-indexed loans to alternative indexes, including prime and Term SOFR, following the discontinuation of the LIBOR index effective June 30, 2023[250].

Financial Performance - Net income for the three months ended March 31, 2023, was $7.6 million or $1.05 per diluted share, a 21.3% decrease from $9.6 million or $1.33 per share for the same period in 2022[203]. - Noninterest income for the same period was $3.7 million, an increase of $0.3 million or 7.4% from $3.4 million a year ago, driven by higher retail and commercial account service charges[226]. - Noninterest expenses rose by $2.2 million or 15.4% to $16.5 million for the three months ended March 31, 2023, compared to $14.3 million in the prior year, with salaries and employee benefits increasing by $1.0 million or 12.9%[228]. - The company recorded an income tax expense of $1.4 million, representing 15.5% of pre-tax income for the three months ended March 31, 2023, down from 16.0% in the same period last year[229]. Asset and Loan Growth - Total assets increased by $125.0 million or 14.3% annualized, reaching $3.7 billion at March 31, 2023, compared to $3.6 billion at December 31, 2022[149]. - Total loans rose to $2.8 billion at March 31, 2023, an increase of $88.0 million from $2.7 billion at December 31, 2022[149]. - Commercial real estate loans increased by $73.1 million or 17.3% annualized, reaching $1.8 billion at March 31, 2023[157]. - Consumer loans increased by $3.0 million or 13.4% annualized, totaling $93.3 million at March 31, 2023[158]. - Residential real estate loans rose by $11.7 million or 14.4% annualized, reaching $342.5 million at March 31, 2023[159]. - For the three months ended March 31, 2023, total loans averaged $2.8 billion, an increase of $418.1 million or 17.8% compared to the same period in 2022[160]. Deposit Changes - Deposits increased by $189.4 million to $3.2 billion at March 31, 2023, with a $161.4 million increase in brokered deposits[150]. - Total deposits increased by $189.4 million or 25.2% annualized to $3.2 billion from $3.0 billion at December 31, 2022[170]. - Noninterest-bearing deposits decreased by $26.7 million or 14.0% annualized, while interest-bearing deposits increased by $216.1 million or 38.5% annualized during the same period[170]. Investment Portfolio - The investment portfolio decreased by $59.6 million or 12.5% to $418.1 million at March 31, 2023, primarily due to the sale of $65.6 million in securities[151]. - The tax-equivalent yield on the investment portfolio increased by 15 basis points to 1.83% for the three months ended March 31, 2023[154]. Equity and Capital - Total stockholders' equity increased by $13.3 million to $328.6 million at March 31, 2023, due to net income and a decrease in accumulated other comprehensive loss[149]. - Stockholders' equity totaled $328.6 million or $45.96 per share at March 31, 2023, an increase from $315.4 million or $44.06 per share at December 31, 2022[197]. - The Bank's Tier 1 capital to risk-weighted asset ratio was 12.00% at March 31, 2023, compared to 12.27% at December 31, 2022, meeting all capital adequacy requirements[202]. Interest Income and Expense - Net interest income adjusted to FTE for Q1 2023 was $23.5 million, compared to $23.1 million for Q1 2022, reflecting an increase in interest income[206]. - Total interest expense rose by $9.3 million to $11.2 million for the three months ended March 31, 2023, compared to $1.9 million in the same period in 2022[212]. - The overall yield on earning assets increased by 94 basis points to 4.16% for the three months ended March 31, 2023, compared to 3.22% in 2022[211]. - The tax-equivalent yield on the entire loan portfolio was 4.66% for the three months ended March 31, 2023, an increase of 81 basis points from the comparable period last year[160]. Credit Losses and Provisions - The allowance for credit losses equaled $25.4 million or 0.90% of loans, net at March 31, 2023, compared to $27.5 million or 1.01% at December 31, 2022[168]. - Loans charged-off, net of recoveries, for the three months ended March 31, 2023, equaled $9 thousand, less than 0.01% of average loans, compared to $276 thousand or 0.05% for the same period last year[168]. - For the three months ended March 31, 2023, the provision for credit losses increased by $1.0 million to $1.3 million from $0.3 million in the same period last year, primarily due to loan growth and changes in projected portfolio loss rates[225]. Interest Rate Risk and Funding Costs - The Federal Open Market Committee (FOMC) has increased the federal funds target rate by 500 basis points since March 2022, impacting funding costs which increased by 65 basis points compared to the previous quarter[237]. - The company anticipates that funding costs will continue to increase due to FOMC rate adjustments and local competition for deposits[173]. - The total cost of funds increased by 150 basis points to 1.85% for the three months ended March 31, 2023, compared to 0.35% in the prior year[212]. - The interest rate risk position is more asset-sensitive as of March 31, 2023, compared to December 31, 2022, due to an increase in floating rate overnight federal funds sold[235]. Dividends - Dividends declared were $0.41 per share for the three months ended March 31, 2023, compared to $0.39 per share for the same period in 2022, with a payout ratio of 39.0%[200]. - The Company plans to continue its dividend payment policy, with a second quarter dividend of $0.41 per share declared on April 28, 2023[200].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark One) ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36388 Peoples Financial Services Corp. (Exact name of registrant as specified in its charter) Pennsylvania 23-2391852 ...

Financial Performance - For the three months ended September 30, 2022, net income was $10.0 million or $1.38 per diluted share, a 9.6% increase from $9.1 million or $1.26 per share in the same period of 2021[176]. - For the nine months ended September 30, 2022, net income was $29.0 million or $4.01 per diluted share, a 6.8% increase from $27.1 million or $3.74 per diluted share in the same period of 2021[177]. - Net interest income increased by $3.0 million for the three months and $8.3 million for the nine months ended September 30, 2022, compared to the same periods in 2021[176][177]. - Noninterest expenses increased by $1.8 million for the three months and $5.5 million for the nine months ended September 30, 2022, primarily due to higher salaries, benefits, and costs related to market expansion and technology upgrades[176][177]. Asset and Loan Growth - Total assets increased by $147.3 million or 5.9% annualized, reaching $3.5 billion at September 30, 2022[122]. - Total loans rose to $2.6 billion at September 30, 2022, an increase of $294.5 million from December 31, 2021, with loan growth excluding PPP loans totaling $340.7 million or 20.2% annualized[122][130]. - Commercial real estate loans increased by $276.6 million or 27.5% annualized, totaling $1.6 billion at September 30, 2022[131]. - Consumer loans increased by $6.6 million or 11.7% annualized, reaching $81.4 million at September 30, 2022[132]. - Residential real estate loans increased by $28.6 million or 12.8% annualized, totaling $326.2 million at September 30, 2022[133]. Equity and Deposits - Total stockholders' equity decreased by $38.3 million or 11.3%, from $340.1 million at year-end 2021 to $301.8 million at September 30, 2022[122]. - Total deposits increased by $160.7 million or 5.4% to $3.1 billion from $3.0 billion at December 31, 2021[145]. - Noninterest-bearing deposits increased to $770,833 thousand as of September 30, 2022, compared to $696,331 thousand in the previous year[199]. Interest Rates and Income - The tax-equivalent yield on the entire loan portfolio was 3.93% for the nine months ended September 30, 2022, a decrease of 7 basis points from the comparable period last year[134]. - The net interest spread decreased to 2.87% for the three months ended September 30, 2022, down from 2.95% in the same period of 2021[186]. - The overall yield on earning assets increased by 22 basis points to 3.59% for the three months ended September 30, 2022, compared to 3.37% in 2021[187]. - The cost of funds increased by 30 basis points to 0.72% for the three months ended September 30, 2022, compared to 0.42% in the prior year[188]. Loan Losses and Provisions - The allowance for loan losses increased by $1.4 million or 5.1% during the first nine months of 2022, totaling $29.8 million or 1.14% of loans, net[144]. - Loans charged-off, net of recoveries, for the nine months ended September 30, 2022, were $261 thousand, significantly lower than $651 thousand for the same period last year[144]. - The provision for loan losses for the three months ended September 30, 2022, increased to $450 thousand from $400 thousand in the prior year due to improving credit trends[204]. - For the nine months ended September 30, 2022, the provision for loan losses was $1.7 million, compared to no provision in the same period of 2021, attributed to $340.7 million in non-PPP loan growth[205]. Market Conditions - Core inflation was 6.6% for the 12 months ended September 30, 2022, the largest increase since August 1982[116]. - The unemployment rate was 3.5% in September 2022, indicating a strong labor market[119]. Regulatory and Risk Management - The Federal Open Market Committee (FOMC) increased the federal funds target rate by 375 basis points through November 2, 2022, impacting funding costs which increased by 33 basis points compared to the previous quarter[221]. - The Asset Liability Committee (ALCO) regularly reviews interest rate risk exposure and has established policy guidelines to manage liquidity and interest rate risk[215]. - The company is transitioning LIBOR-indexed loans to alternative indexes, including prime and Term SOFR, in response to the discontinuation of LIBOR effective June 30, 2023[223]. - As of September 30, 2022, net interest income simulations indicated that exposure to changing interest rates remained within established tolerance levels[218]. Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2022, was $3.3 million, a decrease of $132 thousand or 3.8% from $3.4 million in the same quarter a year ago, primarily due to declines in mortgage banking revenue and Wealth Management fees[206]. - For the nine months ended September 30, 2022, noninterest income increased to $10.6 million, an increase of $266 thousand or 2.6% from $10.3 million in the same period a year ago, driven by higher service charges and fees[207]. - Noninterest expense for the three months ended September 30, 2022, increased by $1.8 million or 12.6% to $15.9 million from $14.1 million for the same period a year ago, with salaries and employee benefits rising by $645 thousand or 8.2%[209]. - For the nine months ended September 30, 2022, noninterest expense increased by $5.5 million or 13.6% to $45.7 million from $40.2 million for the same period in 2021, largely due to increased salaries and employee benefits and occupancy expenses[211]. Capital and Funding - The Tier 1 capital to total average assets ratio was 9.63% as of September 30, 2022, compared to 9.58% at December 31, 2021[175]. - The net noncore funding dependence ratio was 4.5% as of September 30, 2022, indicating an increase in reliance on noncore funds compared to a negative 3.0% at year-end 2021[164]. - Total borrowings increased to $48.8 million at September 30, 2022, up from $35.7 million at December 31, 2021[150].

Financial Performance - For the six months ended June 30, 2022, net income was $18,983, or $2.63 per diluted share, a 5.6% increase compared to $18,009, or $2.49 per diluted share for the same period in 2021[174]. - The company reported a net interest income increase of $5,280 for the six months ended June 30, 2022, compared to the same period in 2021[174]. - For the three months ended June 30, 2022, net interest income increased to $24,168, representing a net interest margin of 3.06% compared to $20,656 and 2.82% in the same period last year[200]. - Noninterest income for the three months ended June 30, 2022 was $3,881, an increase of $494 or 14.6% from $3,387 in 2021, primarily due to higher revenue from commercial loan interest rate swaps[205]. - Noninterest income for the six months ended June 30, 2022 was $7,302, an increase of $398 or 5.8% from $6,904 in the year-ago period[206]. Asset and Loan Growth - Total assets increased by $52,056 or 3.1% annualized, reaching $3,421,539 at June 30, 2022, compared to $3,369,483 at December 31, 2021[121]. - Total loans rose to $2,565,579 at June 30, 2022, an increase of $236,406 from $2,329,173 at December 31, 2021, with loan growth excluding PPP loans totaling $278,263 or 24.8% annualized[123][130]. - Commercial real estate loans increased by $226,119 or 33.9% annualized, reaching $1,569,657 at June 30, 2022, compared to $1,343,539 at December 31, 2021[130]. - Consumer loans increased by $6,557 or 17.7% annualized, totaling $81,440 at June 30, 2022, compared to $74,883 at December 31, 2021[131]. - Residential real estate loans increased by $20,048 or 13.6% annualized, reaching $317,672 at June 30, 2022, compared to $297,624 at December 31, 2021[132]. Equity and Capital - Total stockholders' equity decreased by $28,229 or 8.3%, from $340,126 at year-end 2021 to $311,897 at June 30, 2022[121]. - The Tier 1 capital to total average assets ratio was 9.78% as of June 30, 2022, compared to 9.58% at December 31, 2021[172]. - The company's return on average equity (ROE) was 11.71% for the second quarter of 2022, up from 10.71% for the same period in 2021[175]. Interest Rates and Income - The tax-equivalent yield on the entire loan portfolio was 3.84% for the six months ended June 30, 2022, a 12 basis point decrease from the comparable period last year[133]. - Tax-equivalent net interest income for the six months ended June 30, 2022, was $47,243, up from $41,759 in the comparable period last year, reflecting a positive volume variance[189]. - The tax-equivalent yield on earning assets decreased by 15 basis points to 3.28% in 2022 from 3.43% in 2021, resulting in a decrease in interest income of $4,652[193]. - The cost of interest-bearing deposits decreased to 0.28% in 2022 from 0.43% in 2021, reflecting actions taken to lower deposit rates amid net interest margin compression[145]. Asset Quality and Loan Losses - Total nonperforming assets decreased to $4,577 or 0.14% of total assets at June 30, 2022, down from $4,961 or 0.15% at December 31, 2021, indicating improved asset quality[136]. - The allowance for loan losses increased by $991 or 3.49% during the first six months of 2022, totaling $29,374 or 1.14% of loans, net, compared to $28,383 or 1.22% at year-end 2021[142]. - The allowance for loan losses was $28,779 as of June 30, 2022, compared to $27,426 a year earlier, indicating a proactive approach to managing credit risk[202]. - Loans charged-off, net of recoveries, for the six months ended June 30, 2022, were $259 or 0.02% of average loans, compared to $205 or 0.02% for the same period last year[142]. Deposits and Borrowings - Total deposits decreased by $52,114 or 1.76% to $2,911,283 as of June 30, 2022, from $2,963,397 at December 31, 2021, primarily due to outflows from public fund NOW accounts[143]. - Total borrowings increased significantly to $163,816 at June 30, 2022, from $35,711 at December 31, 2021, driven by the need to fund loan growth and replace deposit outflows[147]. - Interest-bearing transaction accounts decreased by $93,945 or 6.5% to $1,345,386 at June 30, 2022, while savings accounts increased by $26,350 to $518,146[144]. Noninterest Expenses - Noninterest expense increased by $2,035 or 15.1% to $15,493 for the three months ended June 30, 2022, compared to $13,458 for the same period in 2021[208]. - Salaries and employee benefits rose by $601 or 8.3% due to annual merit increases and the addition of lending teams in new markets[208]. - For the six months ended June 30, noninterest expense rose by $3,695 or 14.2% to $29,782 in 2022 from $26,087 in 2021[210]. Economic and Market Conditions - The personal consumption index (PCE) for June increased by 6.8% from one year ago, reflecting increases in both goods and services[119]. - The Federal Open Market Committee (FOMC) raised the federal funds target rate by 225 basis points since March 2022 to combat high inflation[220]. - The projected impact of a 100 basis point increase in interest rates would decrease net interest income by 1.7% for the 12 months ending June 30, 2022[221]. - Funding costs may increase in the future due to FOMC rate adjustments and local competition for deposits, potentially impacting net interest income[220]. LIBOR Transition - The company is transitioning LIBOR-indexed loans to alternative indexes, including prime and Term SOFR, in response to the discontinuation of LIBOR[222]. - The company has formed a LIBOR transition team to monitor the transition plan and ensure a smooth shift to alternative reference rates[222].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2022 or ☐ Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the transition period from 001-36388 (Commission File Number) PEOPLES FINANCIAL SERVICES CORP. (Exact name of registrant as specified in its charter) Pennsylvania 23-2391852 (Stat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | FORM | | --- | | 10- | | K | | (Mark One) | | ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF | | 1934 | | For the fiscal year ended December 31, 2021 | | ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT | | OF 1934 | | For the transition period from to | | Commission file number: 001-36388 | | Peoples Financial Services Corp. | | (Exact name of regist ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2021 or ☐ Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the transition period from 001-36388 (Commission File Number) PEOPLES FINANCIAL SERVICES CORP. (Exact name of registrant as specified in its charter) Pennsylvania 23-2391852 ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2021 or ☐ Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the transition period from 001-36388 (Commission File Number) PEOPLES FINANCIAL SERVICES CORP. (Exact name of registrant as specified in its charter) Pennsylvania 23-2391852 (State ...