Peoples Financial Services (US:PFIS)2024-11-05 21:45Financial Performance - Peoples reported a net loss of $4.3 million, or $0.43 per diluted share for Q3 2024, compared to net income of $6.7 million, or $0.95 per diluted share for Q3 2023[2]. - Core net income for Q3 2024 was $16.5 million, or $1.64 per diluted share, compared to $7.5 million, or $1.05 per diluted share for Q3 2023[3]. - For the nine months ended September 30, 2024, net income was $2.4 million, or $0.30 per diluted share, down from $23.8 million, or $3.31 per diluted share for the same period in 2023[5]. - The company reported a net loss of $4,337,000 for the three months ended September 30, 2024, compared to a net income of $3,282,000 in June 2024[78]. - Core net income for the nine months ended September 30, 2024, was $25,619,000, compared to $24,517,000 for the same period in 2023, reflecting an increase of 4.5%[80]. Interest Income and Expenses - Net interest income increased by $18.0 million to $39.2 million, with a tax-equivalent net interest margin (NIM) rising 97 basis points to 3.26% due to higher earning assets and a $3.7 million net accretion impact from the FNCB merger[2][21]. - Tax-equivalent net interest income for Q3 2024 increased by $18.2 million, or 83.7%, to $40.0 million compared to $21.8 million in Q3 2023[26]. - Total interest income for the nine months ended September 30, 2024, was $145.66 million, up from $109.78 million in the same period last year, reflecting a growth of approximately 32.7%[57]. - Interest income (GAAP) for the nine months ended September 30, 2024, was $145,657,000, an increase from $109,779,000 in 2023, marking a rise of 32.7%[81]. - Interest expense rose to $29,040 thousand, up from $19,460 thousand in the prior quarter, primarily driven by higher deposit costs[66]. Noninterest Income and Expenses - Noninterest income for Q3 2024 was $5.7 million, up from $3.7 million in Q3 2023, primarily due to the FNCB merger[31]. - Noninterest income for the nine months ended September 30, 2024, was $12.7 million, an increase of $1.8 million from $10.9 million in the comparable period in 2023[36]. - Noninterest expense increased by $18.4 million to $35.5 million for the three months ended September 30, 2024, compared to $17.1 million for the same period in 2023[32]. - Noninterest expense (GAAP) for the nine months ended September 30, 2024, was $71,728,000, compared to $50,222,000 in 2023, indicating an increase of 42.7%[82]. Asset and Liability Management - At September 30, 2024, total assets were $5.4 billion, with loans totaling $4.1 billion and deposits at $4.6 billion[38]. - Total deposits increased by $1.4 billion during the nine months ended September 30, 2024, primarily due to deposits acquired in the FNCB merger[40]. - The allowance for credit losses to loans, net increased to 0.97% at September 30, 2024, up from 0.81% at June 30, 2024[15]. - Total assets increased to $5,360,138 thousand as of September 30, 2024, up from $3,825,799 thousand a year earlier, representing a growth of 40.2%[68]. - Total liabilities of the company reached $4,801,057 thousand, an increase from $3,397,539 thousand a year ago, reflecting a growth of 41.4%[76]. Credit Quality and Provisions - The provision for credit losses for the nine months ended September 30, 2024, was $15.8 million, including a $14.3 million day-one provision for non-PCD loans acquired in the FNCB merger[35]. - Nonperforming assets were $21.5 million, or 0.53% of loans, net and foreclosed assets, at September 30, 2024, compared to $4.9 million, or 0.17%, at December 31, 2023[46]. - The provision for credit losses was $15.76 million for the nine months ended September 30, 2024, compared to a credit of $1.10 million in the same period last year[57]. - The company recorded charge-offs of $534 thousand for the quarter, compared to $65 thousand in the same quarter last year, indicating a rise in credit losses[71]. Shareholder Metrics - Stockholders' equity increased to $475.1 million, or $47.53 per share, at September 30, 2024, from $340.4 million, or $48.35 per share, at December 31, 2023[44]. - The company declared cash dividends of $0.62 per share for the latest quarter, an increase from $0.41 per share in the previous quarter[56]. - The market capitalization rose to $468.55 million, significantly up from $282.34 million a year ago, representing an increase of approximately 66%[56]. - Average common shares outstanding - basic increased to 9,987,627 from 7,088,745 year-over-year, reflecting a growth of 41.0%[59]. - Tangible book value per share decreased to $36.24 from $37.07 a year ago, reflecting a decline of approximately 2.2%[56].