Peoples Financial Services (US:PFIS) Prnewswireยท2025-02-06 23:17Core Points - Peoples Financial Services Corp. reported a 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, or $0.43 per diluted share in Q3 2024, primarily due to lower provisions for credit losses and noninterest expenses [2][6][20] - The company completed the merger with FNCB Bancorp, Inc. on July 1, 2024, which contributed approximately $1.8 billion in assets and $1.4 billion in deposits, enhancing its market position in northeastern Pennsylvania [9][10][32] - For the full year 2024, net income decreased to $8.5 million, or $0.99 per diluted share, compared to $27.4 million, or $3.83 per diluted share in 2023, largely due to $30.5 million in non-recurring charges related to the merger [6][30] Financial Performance - Core net income for Q4 2024 was $10.0 million, or $0.99 per diluted share, down from $16.5 million, or $1.64 per diluted share in Q3 2024 [4][5] - Pre-provision net revenue (PPNR) for Q4 2024 was $9.6 million, or $0.96 per diluted share, compared to $8.7 million, or $0.86 per diluted share in Q3 2024 [5][20] - Total interest income for the twelve months ended December 31, 2024, increased to $211.5 million from $149.9 million in 2023, driven by higher loan interest income [27][53] Asset Quality - Nonperforming assets increased to $23.0 million, or 0.58% of loans, net and foreclosed assets at December 31, 2024, compared to $4.9 million, or 0.17% at the end of 2023 [40][41] - The allowance for credit losses was $41.8 million, or 1.05% of loans, net, at December 31, 2024, up from $21.9 million, or 0.77% at the end of 2023 [41][50] Balance Sheet Highlights - As of December 31, 2024, total assets were $5.1 billion, with loans at $4.0 billion and deposits at $4.4 billion, reflecting a loan growth of $1.1 billion or 40.1% year-over-year [32][35] - The company had $135.9 million in cash and cash equivalents, a decrease from $187.4 million at the end of 2023, with additional liquidity sources totaling $2.4 billion [20][37] - Total deposits increased by $1.1 billion during 2024, primarily due to the merger, with noninterest-bearing deposits rising by $290.8 million [35][36] Merger Impact - The FNCB merger resulted in $13.0 million of goodwill and a core deposit intangible valued at $36.6 million, enhancing the company's operational scale and market presence [10][11] - The merger-related expenses totaled $30.5 million for the year, impacting net income but expected to yield long-term benefits through increased market share and operational efficiencies [11][30]