Peoples Financial Services (US:PFIS)2025-02-06 22:15Financial Performance - Peoples reported net income of $6.1 million, or $0.61 per diluted share for Q4 2024, a significant recovery from a net loss of $4.3 million in Q3 2024[2]. - Core net income for Q4 2024 was $10.0 million, or $0.99 per diluted share, compared to $16.5 million, or $1.64 per diluted share in Q3 2024[4]. - For the twelve months ended December 31, 2024, net income decreased to $8.5 million, or $0.99 per diluted share, from $27.4 million, or $3.83 per diluted share in 2023, primarily due to $30.5 million in non-recurring charges[6]. - Net income for Q4 2024 was $8.498 million, a decrease from $27.380 million in Q4 2023[53]. - Core net income for Q4 2024 was $9,988,000, translating to a core net income per share of $0.99, a decrease from $1.64 in Q3 2024[71]. - Core net income per share for 2024 is $3.77, down from $4.03 in 2023, reflecting a decrease of 6.45%[72]. - Core net income for 2024 is $32,365, compared to $28,854 in 2023, reflecting a growth of 12.00%[72]. Mergers and Acquisitions - The FNCB merger, completed on July 1, 2024, was valued at approximately $133.7 million and contributed approximately $1.8 billion in assets[10][11]. - Non-recurring acquisition-related expenses totaled $5.0 million in Q4 2024, down from $24.0 million in Q3 2024[2][12]. - The company incurred acquisition-related expenses of $4,990,000 in Q4 2024, with a tax adjustment of $1,089,000[71]. Asset and Loan Management - Total assets, loans, and deposits as of December 31, 2024 were $5.1 billion, $4.0 billion, and $4.4 billion, respectively[31]. - Total loans reached $4,035,702 thousand, with interest income of $59,882 thousand and a yield of 5.90% for the three months ended December 31, 2024, compared to $2,860,665 thousand, $35,531 thousand, and 4.93% respectively in 2023[56]. - Loan growth for the twelve months ended December 31, 2024 was $1.1 billion, representing a 40.1% increase, primarily due to loans acquired in the FNCB merger[31]. - Total loans decreased to $3,993,505,000 in Q4 2024 from $4,069,683,000 in Q3 2024, a decline of 1.9%[65]. - Total loans, net stood at $4,035,702 million as of December 31, 2024, slightly down from $4,068,634 million at September 30, 2024, reflecting a decrease of about 0.8%[69]. Credit Quality and Loss Provisions - The allowance for credit losses to loans increased to 1.05% at December 31, 2024, up from 0.97% at September 30, 2024[17]. - The provision for credit losses totaled $19.1 million for the twelve months ended December 31, 2024, including a $14.3 million day-one provision related to the FNCB merger[28]. - Provision for credit losses was $3,369,000 in Q4 2024, significantly lower than $14,458,000 in Q3 2024, indicating improved credit quality[54]. - Nonperforming assets increased to $23.0 million or 0.58% of loans at December 31, 2024, compared to $4.9 million or 0.17% at the end of 2023[39]. - Nonperforming assets increased to $23,002,000 in Q4 2024 from $21,545,000 in Q3 2024, an increase of 6.8%[65]. - The allowance for credit losses at the end of Q4 2024 was $41,776,000, up from $39,341,000 at the end of Q3 2024, an increase of 6.0%[65]. Income and Expense Analysis - Net interest income for the twelve months ended December 31, 2024 increased by $29.2 million to $116.0 million, a 33.5% increase in tax-equivalent net interest income compared to 2023[27]. - Noninterest income for the twelve months ended December 31, 2024 was $18.3 million, an increase of $4.2 million or 29.8% from the prior year[29]. - Noninterest expense for the twelve months ended December 31, 2024 was $106.7 million, an increase of $38.9 million or 57.3% from the previous year, largely due to acquisition-related expenses[30]. - Total interest income increased to $211.460 million in 2024 from $149.851 million in 2023, representing a 41.1% growth[53]. - Noninterest expense rose to $106.726 million in 2024, up from $67.820 million in 2023, indicating a 57.2% increase[53]. - Total interest income decreased to $66,504,000 in Q4 2024 from $69,004,000 in Q3 2024, reflecting a decline of 3.6%[61]. Equity and Market Capitalization - Stockholders' equity increased to $469.0 million or $46.94 per share at December 31, 2024, up from $340.4 million or $48.35 per share a year earlier[37]. - Market capitalization increased to $511.325 billion in Q4 2024, compared to $468.549 billion in Q3 2024, reflecting an 9.2% growth[49]. - Total stockholders' equity as of December 31, 2024, was $468,950,000, with tangible book value per share at $35.88, down from $36.24 in the previous quarter[71]. - The company reported a total stockholders' equity of $468,950,000 as of December 31, 2024, down from $475,051,000 at the end of Q3 2024, a decrease of 1.2%[63]. Operational Efficiency - Return on average equity for Q4 2024 was 5.07%, compared to negative 3.58% in Q3 2024; core return on average equity was 8.31%[17]. - Efficiency ratio for Q4 2024 was 63.03%, up from 53.14% in Q3 2024, indicating a decline in operational efficiency[49]. - Pre-provision net revenue (PPNR) for Q4 2024 was $9,636,000, with PPNR per share at $0.96, up from $0.86 in Q3 2024[71]. - Core PPNR (non-GAAP) for Q4 2024 was $14,626,000, with core PPNR per share at $1.46, a decrease from $1.83 in Q3 2024[71]. - Efficiency ratio for the three months ended December 31, 2024, improved to 63.03% from 69.94% in 2023, indicating enhanced operational efficiency[74].