Le Lézard
Classified in: Business
Subject: ERN

Peoples Financial Services Corp. Reports Fourth Quarter 2019 Earnings


SCRANTON, Pa., Jan. 24, 2020 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, today reported unaudited financial results at and for the three and twelve months ended December 31, 2019.  Peoples reported net income of $6.8 million, or $0.92 per share for the three months ended December 31, 2019, a 7.0% increase when compared to $6.4 million, or $0.86 per share for the comparable period of 2018. The increase in earnings for the three months ended December 31, 2019 was the product of higher net interest income of $0.7 million due to growth of $137.7 million in our average earning assets from the year ago period and higher noninterest income of $0.7 million when comparing the three months ended December 31, 2019 to the same period in 2018, partially offset by higher noninterest expense of $0.6 million and an increase of $0.3 million in the provision for loan losses in the 2019 period.

Peoples Financial Services Corp. Logo. (PRNewsFoto/Peoples Financial Services Corp.) (PRNewsFoto/PEOPLES FINANCIAL SERVICES CORP_)

Net income for the twelve months ended December 31, 2019, totaled $27.5 million or $3.72 per share, a 10.5% increase when compared to $24.9 million or $3.37 per share for 2018.  The increase in earnings in 2019 was the result of higher net interest income of $4.2 million due to our earning asset growth and higher noninterest income of $1.5 million combined with a $0.7 million decrease in the provision for loan losses when comparing the twelve months ended December 31, 2019 to the same period in 2018. These positives were partially offset by an increase of $3.3 million in salaries and employee benefit expenses and $1.0 million in occupancy and equipment expenses in support of our growth initiative.

In addition to evaluating its results of operations in accordance with GAAP, Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and core net income ratios. The reported results included in this release contain items, which Peoples considers non-core, namely gains and losses incurred within the investment securities portfolio and gains on the sale of other business lines. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

Core net income, which we have defined to exclude losses or gains on investment securities and gains from other nonrecurring sources, for the three months ended December 31, totaled $6.7 million and $6.4 million in 2019 and 2018, respectively. Core net income per share for the three months ended December 31, 2019 was $0.91, an increase from $0.86 for the same period in 2018. The results in 2019 exclude a pre-tax $126 thousand gain in the value of our equity investment securities portfolio. The 2018 results for the three months ended December 31 do not include any income items considered to be non-core.  

Core net income for the twelve months ended December 31, 2019 was $27.4 million or $3.71 per share, an increase of 11.0% compared to $24.7 million or $3.34 per share for the same period of 2018. Results for the twelve months ended December 31, 2019 exclude a pre-tax $132 thousand gain in the value of our equity investment securities portfolio as well as a pre-tax $23 thousand gain from the sale of investment securities. The 2018 results were impacted by a pre-tax $14 thousand gain in the value of our equity investment securities portfolio and a pre-tax gain of $291 thousand from the sale of our credit card portfolio. 

NOTABLES

INCOME STATEMENT REVIEW

Calculated on a fully taxable equivalent basis ("FTE"), our tax-equivalent net interest margin for the three and twelve months ended December 31 was 3.52% and 3.58% respectively in 2019, compared to 3.63% and 3.59% respectively for the same periods in 2018. The tax-equivalent yield on earning assets decreased 8 basis points to 4.30% during the three months ended December 31, 2019 from 4.38% during the prior year period.  The decrease in yield was primarily due to decreases in prime loan rates during the second half of 2019 driven by the current interest rate environment and action of the Federal Open Market Committee (FOMC), which affected new originations and refinancing activity, as well as existing adjustable rate loans.   For the twelve months ended December 31, 2019, the tax-equivalent yield on earning assets increased 17 basis points to 4.41% from 4.24% in the prior year period.  The increase is due to loan yields on variable rate loans re-setting higher and new originations moving higher as the FOMC was raising the federal funds rate target during 2018.  During the same periods, we experienced higher interest-bearing liability costs due to higher short-term market rates. Our cost of funds, which represents our average rate paid on total interest-bearing liabilities, increased 7 and 26 basis points to 1.06% and 1.12% respectively for the three and twelve months ended December 31, 2019 when compared to 0.99% and 0.86% respectively for the same periods in 2018. Although the Federal Open Market Committee (FOMC) has decreased the federal funds rate target 75 basis points to a target range of 1.50% to 1.75%, the short end of the yield curve has remained elevated, resulting in slower decreases to deposit and funding costs.

Tax-equivalent net interest income for the twelve months ended December 31, increased $4.2 million or 5.7% to $77.2 million in 2019 from $73.0 million in 2018. The increase in tax equivalent net interest income was primarily due to a $112.4 million increase in average loans for the twelve months ended December 31, 2019 when compared to the same period in 2018. The tax-equivalent yield on the loan portfolio increased to 4.71% for the twelve months ended December 31, 2019, compared to 4.51% for the comparable period in 2018. Loans, net averaged $1.9 billion for the twelve months ended December 31, 2019 and $1.8 billion for the comparable period in 2018. For the twelve months ended December 31, the tax-equivalent yield on total investments decreased to 2.47% in 2019 from 2.60% in 2018. Average investments totaled $279.4 million in 2019 and $281.7 million in 2018. Average interest-bearing liabilities increased $52.5 million for the twelve months ended December 31, 2019, compared to 2018 due to growth in average deposits of $126.3 million in the period which was offset by a $73.8 million decrease in average borrowings.

The provision for loan losses totaled $3.5 million for the twelve months ended December 31, 2019 and $4.2 million for the twelve months ended December 31, 2018.  For the quarter ended December 31, the provision for loan losses was $1.4 million in 2019, an increase of $0.3 million from $1.1 million in 2018 due to higher commercial loan charge offs.

For the twelve months ended December 31, noninterest income totaled $15.1 million in 2019, an increase of $1.4 million or 10.7% from $13.7 million in 2018. The increased non-interest income in 2019 was driven primarily by higher fee income generated from commercial loan interest rate swap transactions which totaled $1.7 million in 2019, and gains of $0.2 million from the equity investment portfolio.  The results for 2018 include fee income from commercial loan interest rate swap transactions of $0.1 million, a gain on the sale of our credit card portfolio of $0.3 million and income of $0.4 million from the proceeds of a bank owned life insurance policy. Increases in revenues from merchant services, fiduciary activities, and wealth management services more than offset decreases in income from mortgage banking activities. For the three months ended December 31, noninterest income totaled $3.9 million in 2019, an increase from $3.2 million in 2018. The largest increases were related to fee income from commercial loan interest rate swap transactions which was higher by $0.7 million and unrealized gains from our equity investment portfolio of $0.1 million.  Lesser increases were recognized from merchant services and fiduciary activities offset by decreases in revenue generated from wealth management services and mortgage banking.

Noninterest expense increased $3.5 million or 6.6% to $56.0 million for the twelve months ended December 31, 2019, from $52.5 million for the twelve months ended December 31, 2018. Salaries and employee benefits increased $3.3 million or 11.6% due primarily to annual merit increases and additional staffing in support of our organic growth strategy.  Occupancy and equipment expenses increased due to our market expansion and investment in technology when comparing the twelve months ended December 31, 2019 and 2018 as those expenses increased $1.0 million or 9.3%. In addition, during the twelve months ended December 31, 2019, increases to other expenses and donations, were more than offset by decreases in professional fees and outside services, amortization expense recognized and FDIC insurance premiums and assessments. Noninterest expense increased $0.6 million or 4.4% to $14.0 million for the three months ended December 31, 2019, from $13.4 million for the three months ended December 31, 2018. Salaries and employee benefits increased $0.9 million or 12.5% due to annual merit increases and continued investment in our expansion. Occupancy and equipment expenses also increased due to our market expansion when comparing the three months ending December 31, 2019 and 2018 as those expenses increased $0.4 million or 15.7%. In the other noninterest expense categories, increases in donations and other expenses were partially offset by decreases in professional fees and outside services, amortization expense and FDIC insurance and assessments.

BALANCE SHEET REVIEW

At December 31, 2019, total assets, loans and deposits were $2.5 billion, $1.9 billion and $2.0 billion, respectively. Loans, net increased $117.2 million or 6.4% from December 31, 2018. The growth in loans was primarily from commercial real estate and commercial and industrial loans. Total deposits increased $96.5 million or 5.1% from December 31, 2018 due in part to growth in commercial balances. Non-interest bearing deposits increased $53.0 million or 12.9% while interest-bearing deposits increased $43.5 million or 3.0% during the twelve months ended December 31, 2019. Total investments were $338.6 million at December 31, 2019, including $330.5 million securities classified as available-for-sale and $7.7 million classified as held-to-maturity.

Stockholders' equity equaled $300.8 million or $40.71 per share at December 31, 2019, and $278.6 million or $37.66 per share at December 31, 2018. Tangible stockholders' equity improved to $31.93 per share at December 31, 2019, from $28.78 per share at December 31, 2018. Dividends declared for the twelve months ended December 31, 2019 amounted to $1.37 per share, a 4.6% increase from 2018, representing a dividend payout ratio of 36.8%.

ASSET QUALITY REVIEW

Nonperforming assets were $10.2 million or 0.53% of loans, net and foreclosed assets at December 31, 2019, compared to $10.0 million or 0.55% of loans, net and foreclosed assets at December 31, 2018. The allowance for loan losses equaled $22.3 million or 1.15% of loans, net at December 31, 2019 compared to $21.4 million or 1.17% of loans, net, at December 31, 2018. Loans charged-off, net of recoveries, for the twelve months ended December 31, 2019, equaled $2.6 million or 0.14% of average loans, compared to $1.8 million or 0.10% of average loans for the comparable period last year.

About Peoples:

Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 28 offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp., Peoples Security Bank and Trust Company, and its subsidiaries (collectively, "Peoples") that are considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.

Peoples cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; our ability to identify and address cyber-security risks and other economic, competitive, governmental, regulatory and technological factors affecting Peoples' operations, pricing, products and services and other factors that may be described in Peoples' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

In addition to these risks, acquisitions and business combinations, present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 

 [TABULAR MATERIAL FOLLOWS]

 


Summary Data

Peoples Financial Services Corp.

Five Quarter Trend

(In thousands, except share and per share data)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31




2019


2019


2019


2019


2018


Key performance data:

















Per share data:

















Net income


$

0.92


$

0.97


$

0.96


$

0.87


$

0.86


Core net income (1)


$

0.91


$

0.97


$

0.96


$

0.87


$

0.86


Cash dividends declared


$

0.35


$

0.34


$

0.34


$

0.34


$

0.33


Book value


$

40.71


$

40.08


$

39.41


$

38.46


$

37.66


Tangible book value (1)


$

31.93


$

31.27


$

30.58


$

29.61


$

28.78


Market value:

















High


$

53.43


$

48.38


$

45.41


$

46.74


$

44.06


Low


$

44.46


$

42.90


$

42.00


$

40.34


$

40.00


Closing


$

50.35


$

45.29


$

44.99


$

45.24


$

44.06


Market capitalization


$

372,010


$

334,637


$

332,885


$

334,733


$

326,002


Common shares outstanding



7,388,480



7,388,759



7,399,078



7,399,054



7,399,054


Selected ratios:

















Return on average stockholders' equity



9.09

%


9.65

%


9.98

%


9.26

%


9.21

%

Core return on average stockholders' equity (1)



8.95

%


9.63

%


9.97

%


9.26

%


9.21

%

Return on average tangible stockholders' equity



11.62

%


12.40

%


12.93

%


12.08

%


12.10

%

Core return on average tangible stockholders' equity (1)



11.45

%


12.38

%


12.91

%


12.08

%


12.10

%

Return on average assets



1.13

%


1.21

%


1.24

%


1.13

%


1.12

%

Core return on average assets (1)



1.11

%


1.21

%


1.24

%


1.13

%


1.12

%

Stockholders' equity to total assets



12.14

%


12.48

%


12.55

%


12.28

%


12.17

%

Efficiency ratio (2)



58.99

%


59.65

%


61.15

%


60.03

%


59.42

%

Nonperforming assets to loans, net, and foreclosed assets



0.53

%


0.61

%


0.68

%


0.76

%


0.55

%

Net charge-offs to average loans, net



0.31

%


0.05

%


0.11

%


0.07

%


0.02

%

Allowance for loan losses to loans, net



1.15

%


1.19

%


1.18

%


1.20

%


1.17

%

Interest-bearing assets yield (FTE) (3)



4.30

%


4.42

%


4.49

%


4.44

%


4.38

%

Cost of funds



1.06

%


1.10

%


1.17

%


1.14

%


0.99

%

Net interest spread (FTE) (3)



3.24

%


3.32

%


3.32

%


3.30

%


3.39

%

Net interest margin (FTE) (3)



3.52

%


3.61

%


3.62

%


3.58

%


3.63

%


(1)  See Reconciliation of Non-GAAP financial measures.

(2)  Total noninterest expense less amortization of intangible assets divided by tax-equivalent net interest income and noninterest income less net gains(losses) on investment securities available-for-sale.

(3)  Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.


 

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)












Dec 31


Dec 31


Year Ended


2019


2018


Interest income:








Interest and fees on loans:








Taxable


$

82,495


$

74,352


Tax-exempt



4,309



3,666


Interest and dividends on investment securities:








Taxable



4,435



3,799


Tax-exempt



1,878



2,621


Dividends



84



72


Interest on interest-bearing deposits in other banks



65



151


Interest on federal funds sold



122





Total interest income



93,388



84,661


Interest expense:








Interest on deposits



14,995



9,346


Interest on short-term borrowings



1,642



2,738


Interest on long-term debt



1,231



1,238


Total interest expense



17,868



13,322


Net interest income



75,520



71,339


Provision for loan losses



3,500



4,200


Net interest income after provision for loan losses



72,020



67,139


Noninterest income:








Service charges, fees, commissions



9,026



7,678


Merchant services income



973



809


Commissions and fees on fiduciary activities



2,087



2,036


Wealth management income



1,524



1,447


Mortgage banking income



600



627


Life insurance investment income



755



757


Net gain on investment securities



155



14


Net gains on sale of credit card loans






291


Total noninterest income



15,120



13,659


Noninterest expense:








Salaries and employee benefits expense



31,694



28,407


Net occupancy and equipment expense



11,911



10,897


Amortization of intangible assets



730



881


Other expenses



11,627



12,302


Total noninterest expense



55,962



52,487


Income before income taxes



31,178



28,311


Provision for income tax expense



3,635



3,391


Net income


$

27,543


$

24,920


Other comprehensive income (loss):








Unrealized gain (loss) on investment securities available-for-sale


$

5,109


$

(2,014)


Reclassification adjustment for gains included in net income



(23)





Change in pension liability



639



(591)


Change in derivative fair value



441



246


Income tax related to other comprehensive income (loss)



1,295



(496)


Other comprehensive income (loss), net of income taxes



4,871



(1,863)


Comprehensive income


$

32,414


$

23,057


Per share data:








Net income


$

3.72


$

3.37


Cash dividends declared


$

1.37


$

1.31


Average common shares outstanding



7,395,429



7,397,797


 

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31


Three months ended


2019


2019


2019


2019


2018


Interest income:

















Interest and fees on loans:

















Taxable


$

20,811


$

20,940


$

20,641


$

20,103


$

19,806


Tax-exempt



1,035



1,066



1,109



1,099



1,006


Interest and dividends on investment securities available-for-sale:

















Taxable



1,308



1,092



1,025



1,012



1,009


Tax-exempt



385



411



520



562



620


Dividends



24



19



22



19



21


Interest on interest-bearing deposits in other banks



15



27



15



6



20


Interest on federal funds sold



45



77











Total interest income



23,623



23,632



23,332



22,801



22,482


Interest expense:

















Interest on deposits



3,905



3,966



3,713



3,411



3,211


Interest on short-term borrowings



151



83



595



813



421


Interest on long-term debt



308



347



296



280



302


Total interest expense



4,364



4,396



4,604



4,504



3,934


Net interest income



19,259



19,236



18,728



18,297



18,548


Provision for loan losses



1,400



700



350



1,050



1,050


Net interest income after provision for loan losses



17,859



18,536



18,378



17,247



17,498


Noninterest income:

















Service charges, fees, commissions



2,376



2,161



2,490



1,999



1,822


Merchant services income



136



182



457



198



122


Commissions and fees on fiduciary activities



519



569



492



507



484


Wealth management income



382



395



370



377



399


Mortgage banking income



143



172



137



148



155


Life insurance investment income



188



189



192



186



189


Net gain on investment securities



126



14



14



1





Total noninterest income



3,870



3,682



4,152



3,416



3,171


Noninterest expense:

















Salaries and employee benefits expense



8,006



8,056



8,037



7,595



7,116


Net occupancy and equipment expense



3,104



2,997



2,849



2,961



2,682


Amortization of intangible assets



173



183



182



192



211


Other expenses



2,681



2,843



3,361



2,742



3,364


Total noninterest expense



13,964



14,079



14,429



13,490



13,373


Income before income taxes



7,765



8,139



8,101



7,173



7,296


Income tax expense



926



991



957



761



904


Net income


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Other comprehensive income (loss):

















Unrealized (loss) gain on investment securities available-for-sale


$

(102)


$

161


$

2,611


$

2,439


$

2,380


Reclassification adjustment for gains included in net income









(23)








Change in pension liability



639












(591)


Change in derivative fair value



(218)



153



443



63



246


Income tax related to other comprehensive income (loss)



67



66



637



525



429


Other comprehensive income, net of income taxes



252



248



2,394



1,977



1,606


Comprehensive income


$

7,091


$

7,396


$

9,538


$

8,389


$

7,998


Per share data:

















Net income


$

0.92


$

0.97


$

0.96


$

0.87


$

0.86


Cash dividends declared


$

0.35


$

0.34


$

0.34


$

0.34


$

0.33


Average common shares outstanding



7,388,488



7,394,992



7,399,302



7,399,054



7,399,054


 

 

Peoples Financial Services Corp.

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31


Three months ended


2019


2019


2019


2019


2018


Net interest income:

















Interest income

















Loans, net:

















Taxable


$

20,811


$

20,940


$

20,641


$

20,103


$

19,806


Tax-exempt



1,310



1,348



1,404



1,391



1,274


Total loans, net



22,121



22,288



22,045



21,494



21,080


Investments:

















Taxable



1,322



1,111



1,045



1,031



1,047


Tax-exempt



487



520



659



711



785


Total investments



1,809



1,631



1,704



1,742



1,832


Interest on interest-bearing balances in other banks



25



27



17



6



3


Federal funds sold



45



77











Total interest income



24,000



24,023



23,766



23,242



22,915


Interest expense:

















Deposits



3,905



3,966



3,713



3,411



3,211


Short-term borrowings



151



83



595



813



421


Long-term debt



308



347



296



280



302


Total interest expense



4,364



4,396



4,604



4,504



3,934


Net interest income


$

19,636


$

19,627


$

19,162


$

18,738


$

18,981


Loans, net:

















Taxable



4.67

%


4.80

%


4.85

%


4.79

%


4.73

%

Tax-exempt



3.88

%


3.94

%


3.96

%


3.91

%


3.80

%

Total loans, net



4.62

%


4.74

%


4.78

%


4.72

%


4.66

%

Investments:

















Taxable



2.27

%


2.20

%


2.21

%


2.25

%


2.25

%

Tax-exempt



2.88

%


2.93

%


3.20

%


3.17

%


3.25

%

Total investments



2.41

%


2.39

%


2.51

%


2.55

%


2.60

%

Interest-bearing balances with banks



1.87

%


2.14

%


2.67

%


2.37

%


2.28

%

Federal funds sold



1.85

%


2.14

%










Total interest-bearing assets



4.30

%


4.42

%


4.49

%


4.44

%


4.38

%

Interest expense:

















Deposits



1.00

%


1.03

%


1.03

%


0.96

%


0.87

%

Short-term borrowings



2.00

%


2.62

%


2.69

%


2.70

%


2.56

%

Long-term debt



2.52

%


2.61

%


2.83

%


3.02

%


2.63

%

Total interest-bearing liabilities



1.06

%


1.10

%


1.17

%


1.14

%


0.99

%

Net interest spread



3.24

%


3.32

%


3.32

%


3.30

%


3.39

%

Net interest margin



3.52

%


3.61

%


3.62

%


3.58

%


3.63

%

 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31


At period end


2019


2019


2019


2019


2018


Assets:

















Cash and due from banks


$

26,943


$

35,908


$

26,615


$

24,364


$

32,569


Interest-bearing balances in other banks



4,210



5,275



3,347



1,688



47


Federal funds sold






10,100











Investment securities:

















Available-for-sale



330,478



268,823



261,665



270,384



269,682


Equity investments carried at fair value



423



297



283



292



291


Held-to-maturity



7,656



7,808



7,969



8,162



8,361


Loans held for sale



986



1,390



831






749


Loans, net



1,940,490



1,881,090



1,858,799



1,849,602



1,823,266


Less: allowance for loan losses



22,327



22,392



21,930



22,105



21,379


Net loans



1,918,163



1,858,698



1,836,869



1,827,497



1,801,887


Premises and equipment, net



47,932



47,437



46,468



44,728



38,889


Accrued interest receivable



6,987



6,655



7,303



7,211



7,115


Goodwill



63,370



63,370



63,370



63,370



63,370


Other intangible assets, net



1,565



1,738



1,921



2,104



2,296


Other assets



68,741



65,200



67,625



68,144



63,737


Total assets


$

2,477,454


$

2,372,699


$

2,324,266


$

2,317,944


$

2,288,993


Liabilities:

















Deposits:

















Noninterest-bearing


$

463,238


$

440,582


$

419,995


$

432,830


$

410,260


Interest-bearing



1,508,251



1,560,703



1,456,804



1,435,400



1,464,762


Total deposits



1,971,489



2,001,285



1,876,799



1,868,230



1,875,022


Short-term borrowings



152,150






82,700



109,000



86,500


Long-term debt



32,733



52,509



52,980



37,446



37,906


Accrued interest payable



1,277



1,461



1,058



878



1,195


Other liabilities



18,988



21,277



19,146



17,821



9,756


Total liabilities



2,176,637



2,076,532



2,032,683



2,033,375



2,010,379


Stockholders' equity:

















Common stock



14,777



14,778



14,798



14,798



14,798


Capital surplus



135,251



135,106



135,384



135,393



135,310


Retained earnings



153,994



149,740



145,106



140,478



136,582


Accumulated other comprehensive loss



(3,205)



(3,457)



(3,705)



(6,100)



(8,076)


Total stockholders' equity



300,817



296,167



291,583



284,569



278,614


Total liabilities and stockholders' equity


$

2,477,454


$

2,372,699


$

2,324,266


$

2,317,944


$

2,288,993


 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31


Average quarterly balances


2019


2019


2019


2019


2018


Assets:

















Loans, net:

















Taxable


$

1,766,373


$

1,729,741


$

1,707,730


$

1,701,737


$

1,662,290


Tax-exempt



134,040



135,580



142,310



144,119



133,100


Total loans, net



1,900,413



1,865,321



1,850,040



1,845,856



1,795,390


Investments:

















Taxable



231,079



200,444



189,265



185,696



184,345


Tax-exempt



67,208



70,381



82,565



90,961



95,698


Total investments



298,287



270,825



271,830



276,657



280,043


Interest-bearing balances with banks



5,317



5,006



2,554



1,028



523


Federal funds sold



9,629



14,267











Total interest-bearing assets



2,213,646



2,155,419



2,124,424



2,123,541



2,075,956


Other assets



192,121



193,041



190,583



187,537



186,491


Total assets


$

2,405,767


$

2,348,460


$

2,315,007


$

2,311,078


$

2,262,447


Liabilities and stockholders' equity:

















Deposits:

















Interest-bearing


$

1,549,978


$

1,521,047


$

1,449,665


$

1,445,861


$

1,459,155


Noninterest-bearing



459,248



445,238



426,791



406,733



403,488


Total deposits



2,009,226



1,966,285



1,876,456



1,852,594



1,862,643


Short-term borrowings



30,018



12,563



88,792



121,954



65,192


Long-term debt



48,468



52,731



41,948



37,663



45,503


Other liabilities



19,452



22,900



20,773



17,977



13,794


Total liabilities



2,107,164



2,054,479



2,027,969



2,030,188



1,987,132


Stockholders' equity



298,603



293,981



287,038



280,890



275,315


Total liabilities and stockholders' equity


$

2,405,767


$

2,348,460


$

2,315,007


$

2,311,078


$

2,262,447


 

 

Peoples Financial Services Corp.

Asset Quality Data

(In thousands)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31




2019


2019


2019


2019


2018


At quarter end

















Nonperforming assets:

















Nonaccrual/restructured loans


$

9,347


$

10,657


$

11,926


$

12,803


$

8,669


Accruing loans past due 90 days or more



430



387



341



829



923


Foreclosed assets



450



485



408



360



376


Total nonperforming assets


$

10,227


$

11,529


$

12,675


$

13,992


$

9,968



















Three months ended

















Allowance for loan losses:

















Beginning balance


$

22,392


$

21,930


$

22,105


$

21,379


$

20,413


Charge-offs



1,559



308



576



374



202


Recoveries



94



70



51



50



118


Provision for loan losses



1,400



700



350



1,050



1,050


Ending balance


$

22,327


$

22,392


$

21,930


$

22,105


$

21,379


 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except share and per share data)





















Dec 31


Sept 30


June 30


Mar 31


Dec 31


Three months ended


2019


2019


2019


2019


2018


Core net income per share:

















Net income GAAP


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Adjustments:

















Less: (gain) loss on investment securities



(126)



(14)



(14)



(1)





Add: (gain) loss on investment securities tax adjustment



(26)



(3)



(3)








Net income Core


$

6,739


$

7,137


$

7,133


$

6,411


$

6,392


Average common shares outstanding



7,388,488



7,394,992



7,399,302



7,399,054



7,399,054


Core net income per share


$

0.91


$

0.97


$

0.96


$

0.87


$

0.86


Tangible book value:

















Total stockholders' equity


$

300,817


$

296,167


$

291,583


$

284,569


$

278,614


Less: Goodwill



63,370



63,370



63,370



63,370



63,370


Less: Other intangible assets, net



1,565



1,738



1,921



2,104



2,296


Total tangible stockholders' equity


$

235,882


$

231,059


$

226,292


$

219,095


$

212,948


Common shares outstanding



7,388,480



7,388,759



7,399,078



7,399,054



7,399,054


Tangible book value per share


$

31.93


$

31.27


$

30.58


$

29.61


$

28.78


Core return on average stockholders' equity:

















Net income GAAP


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Adjustments:

















Less: (gain) loss on investment securities



(126)



(14)



(14)



(1)





Add: (gain) loss on investment securities tax adjustment



(26)



(3)



(3)








Net income Core


$

6,739


$

7,137


$

7,133


$

6,411


$

6,392


Average stockholders' equity


$

298,603


$

293,981


$

287,038


$

280,890


$

275,315


Core return on average stockholders' equity



8.95

%


9.63

%


9.97

%


9.26

%


9.21

%

Return on average tangible equity:

















Net income GAAP


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Average stockholders' equity


$

298,603


$

293,981


$

287,038


$

280,890


$

275,315


Less: average intangibles



65,022



65,200



65,406



65,570



65,772


Average tangible stockholders' equity


$

233,581


$

228,781


$

221,632


$

215,320


$

209,543


Return on average tangible stockholders' equity



11.62

%


12.40

%


12.93

%


12.08

%


12.10

%

Core return on average tangible stockholders' equity:

















Net income GAAP


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Adjustments:

















Less: (gain) loss on investment securities



(126)



(14)



(14)



(1)





Add: (gain) loss on investment securities tax adjustment



(26)



(3)



(3)








Net income Core


$

6,739


$

7,137


$

7,133


$

6,411


$

6,392


Average stockholders' equity


$

298,603


$

293,981


$

287,038


$

280,890


$

275,315


Less: average intangibles



65,022



65,200



65,406



65,570



65,772


Average tangible stockholders' equity


$

233,581


$

228,781


$

221,632


$

215,320


$

209,543


Core return on average tangible stockholders' equity



11.45

%


12.38

%


12.91

%


12.08

%


12.10

%

Core return on average assets:

















Net income GAAP


$

6,839


$

7,148


$

7,144


$

6,412


$

6,392


Adjustments:

















Less: (gain) loss on investment securities



(126)



(14)



(14)



(1)





Add: (gain) loss on investment securities tax adjustment



(26)



(3)



(3)








Net income Core


$

6,739


$

7,137


$

7,133


$

6,411


$

6,392


Average assets


$

2,405,767


$

2,348,460


$

2,315,007


$

2,311,078


$

2,262,447


Core return on average assets



1.11

%


1.21

%


1.24

%


1.13

%


1.12

%


 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except share and per share data)












Dec 31


Dec 31


Year Ended


2019


2018


Core net income per share:








Net income GAAP


$

27,543


$

24,920


Adjustments:








Less: Gain on sale of business line






291


Less: Gain on investment securities



(155)



14


Add: Gain on sale of business line tax adjustment






61


Add: Gain on investment securities tax adjustment



(33)



3


Net income Core


$

27,421


$

24,679


Average common shares outstanding



7,395,429



7,397,797


Core net income per share


$

3.71


$

3.34


 

 

SOURCE Peoples Financial Services Corp.


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