Peoples Financial Services (US:PFIS)2025-10-30 20:05Financial 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]