Peoples Financial Services (US:PFIS) Prnewswireยท2025-07-31 12:00Core Viewpoint - Peoples Financial Services Corp. reported strong financial results for the second quarter and first half of 2025, driven by increased net interest income and successful integration following the merger with FNCB Bancorp, Inc. [2][3][4] Financial Performance Summary - For the three months ended June 30, 2025, net income was $17.0 million, or $1.68 per diluted share, up from $15.0 million, or $1.49 per diluted share in the previous quarter [2] - The return on average assets (ROAA) and return on average equity (ROAE) for the second quarter were 1.36% and 13.87%, respectively, compared to 1.22% and 12.70% in the first quarter of 2025 [2] - For the six months ended June 30, 2025, net income was $32.0 million, or $3.18 per diluted share, significantly higher than $6.7 million, or $0.95 per diluted share for the same period in 2024 [3] Income Statement Review - Net interest income for the second quarter increased by $2.7 million to $42.2 million, with a fully taxable equivalent (FTE) net interest income of $42.9 million, reflecting a 6.6% increase [8] - Noninterest income for the second quarter was $6.2 million, slightly down from $6.3 million in the previous quarter, with notable contributions from merchant servicing income and recovery of a pre-merger loss [14] - Noninterest expense rose to $28.3 million, an increase of $0.9 million from the previous quarter, primarily due to higher salaries and employee benefits [15] Balance Sheet Review - As of June 30, 2025, total assets were $5.1 billion, total loans were $4.0 billion, and total deposits were $4.3 billion [25] - The company experienced a decrease in total deposits by $120.2 million, attributed to seasonal outflows of non-maturity deposits [27] - The company maintained a well-capitalized position with stockholders' equity of $494.1 million, or $49.44 per share, an increase from $469.0 million at the end of 2024 [30] Asset Quality Review - Nonperforming assets decreased to $17.4 million, or 0.44% of loans, net, and foreclosed assets, down from $23.0 million, or 0.58% at the end of 2024 [32] - The allowance for credit losses was $40.9 million, or 1.02% of loans, net, compared to $41.8 million, or 1.05% at the end of 2024 [33] Notable Developments - The company declared a second-quarter dividend of $0.6175 per share, representing a 50.6% increase over the same quarter in 2024 [9] - The merger with FNCB Bancorp, completed on July 1, 2024, has positively impacted the company's financial performance, enhancing net interest income and noninterest income [3][4]