Peoples Financial Services (US:PFIS)2024-04-25 20:26Financial Performance - Peoples Financial Services Corp. reported a net income of $3.5 million, or $0.49 per diluted share for Q1 2024, a 54.3% decrease from $7.6 million, or $1.05 per diluted share in Q1 2023[3] - Core net income for Q1 2024 was $3.9 million, or $0.55 per diluted share, compared to $7.5 million, or $1.04 per share in the same period last year[4] - Net income for the three months ended March 31, 2024 was $0.49 per share, down from $0.51 per share for the previous quarter[44] - Core net income for the same period was $0.55 per share, compared to $0.61 per share in the prior quarter[44] - Comprehensive income for Q1 2024 was $2,402,000, significantly lower than $14,473,000 in Q1 2023[47] - Core net income for the quarter was $3,893 thousand, down from $4,341 thousand, a decrease of 10.3%[62] - Core net income per share decreased to $0.55 from $0.61, a decline of 9.8%[62] Income and Expenses - Tax-equivalent net interest income decreased by $3.7 million, or 15.9%, to $19.8 million in Q1 2024 from $23.5 million in Q1 2023[10] - Noninterest income for Q1 2024 was $3.4 million, a decrease of $0.3 million from the prior year's quarter, mainly due to lower swap income[16] - Total noninterest expense increased to $18,068,000 in Q1 2024, up 9.0% from $16,486,000 in Q1 2023[47] - Noninterest income totaled $3,402,000 in Q1 2024, a decrease of 7.4% compared to $3,674,000 in Q1 2023[47] - Noninterest expense (GAAP) rose to $18,068,000 in Q1 2024 from $16,486,000 in Q1 2023, an increase of 9.6%[63] Asset and Deposit Trends - Total deposits decreased by $75.1 million to $3.2 billion during Q1 2024, attributed to seasonal outflows of municipal deposits[12] - Total assets as of March 31, 2024, were $3,676,750,000, up from $3,574,845,000 in the previous year[54] - Total deposits decreased to $3,203,938 thousand, down from $3,279,037 thousand, a decline of 2.29%[59] - Noninterest-bearing deposits decreased to $616,610,000 from $744,931,000 year-over-year[54] - Total deposits decreased to $3,210,423 thousand from $3,312,338 thousand, a decline of 3.1%[61] Loan and Credit Quality - Net loan growth for Q1 2024 was $8.5 million, or 1.2% annualized, primarily driven by growth in commercial loans[20] - The provision for credit losses was $0.7 million in Q1 2024, down from $1.3 million in the prior year, reflecting a lower calculated allowance for credit losses[15] - Nonperforming assets increased to $7.7 million or 0.27% of loans, net and foreclosed assets at March 31, 2024, compared to $4.9 million or 0.17% at December 31, 2023[28] - The allowance for credit losses equaled $22.6 million or 0.79% of loans, net, at March 31, 2024, compared to $21.9 million or 0.77% at December 31, 2023[29] - The allowance for credit losses was $22,290,000 as of March 31, 2024, compared to $24,557,000 in the previous year[54] Equity and Market Capitalization - Stockholders' equity at March 31, 2024, was $340.0 million, or $48.18 per share, reflecting a decrease due to an increase in unrealized losses on available-for-sale securities[26] - Tangible stockholders' equity decreased to $39.20 per share at March 31, 2024, from $39.35 per share at December 31, 2023[27] - Market capitalization decreased to $304.24 million at March 31, 2024, from $342.89 million at December 31, 2023[44] - The total stockholders' equity slightly decreased to $339,992 thousand from $340,422 thousand, a decrease of 0.13%[55] Strategic Developments - The company announced a strategic merger with FNCB Bancorp, expected to close in the second half of 2024, creating a bank holding company with nearly $5.5 billion in assets[6] Efficiency Metrics - The efficiency ratio increased to 75.77% for the three months ended March 31, 2024, compared to 69.94% in the previous quarter[44] - The efficiency ratio (non-GAAP) increased to 75.77% in Q1 2024 compared to 60.61% in Q1 2023, indicating a decline in operational efficiency[63]