$PFIS

PEOPLES FINANCIAL SERVICES CORP.

CIK:0001056943|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest and fees on loans:
Taxable	$ 59,483	$ 57,459	$ 115,799	$ 112,671
Tax-exempt	2,155	2,302	4,223	4,547
Interest and dividends on investment securities:
Taxable	3,926	4,604	7,961	8,738
Tax-exempt	1,261	399	2,394	795
Dividends	305	40	564	81
Interest on interest-bearing deposits in other banks	622	531	1,515	929
Total interest income	67,752	65,335	132,456	127,761
Interest expense:
Interest on deposits	18,188	20,303	36,327	41,150
Interest on short-term borrowings	536	410	908	635
Interest on long-term debt	1,500	1,211	2,904	2,388
Interest on subordinated debt	1,750	1,026	3,499	1,469
Interest on junior subordinated debt	174	188	347	374
Total interest expense	22,148	23,138	43,985	46,016
Net interest income	45,604	42,197	88,471	81,745
Provision (benefit) for credit losses	3,105	(239)	4,492	(39)
Net interest income after provision (benefit) for credit losses	42,499	42,436	83,979	81,784
Noninterest income:
Mortgage banking income	302	125	543	239
Increase in cash surrender value of life insurance	500	535	997	1,061
Interest rate swap gain	187	164	847	207
Net gains (losses) on equity investment securities	33	(7)	489	64
Net gains on sale of investment securities available for sale			510
Net gains on sale of fixed assets	271		271	680
Total noninterest income	6,534	6,247	13,432	12,503
Noninterest expense:
Salaries and employee benefits expense	15,087	13,761	29,604	27,242
Net occupancy and equipment expense	7,338	6,284	15,013	12,894
Acquisition related expenses		66		220
Amortization of intangible assets	1,518	1,684	3,035	3,367
Professional fees and outside services	1,068	1,168	2,154	2,179
FDIC insurance and assessments	709	976	1,465	1,998
Advertising and corporate business development	1,449	1,074	2,753	1,933
Other expenses	3,441	3,249	6,449	5,782
Total noninterest expense	30,610	28,262	60,473	55,615
Income before income taxes	18,423	20,421	36,938	38,672
Income tax expense	3,618	3,465	7,386	6,707
Net income	14,805	16,956	29,552	31,965
Other comprehensive income:
Unrealized gains (losses) on investment securities available for sale	2,431	1,859	(952)	7,431
Reclassification adjustment for net gains on available for sale securities included in net income			(510)
Change in derivative fair value	80	16	236	(132)
Other comprehensive income (loss) before taxes	2,511	1,875	(1,226)	7,299
Income tax expense (benefit) related to other comprehensive income (loss)	551	409	(269)	1,592
Other comprehensive income (loss), net of income tax expense (benefit)	1,960	1,466	(957)	5,707
Comprehensive income	$ 16,765	$ 18,422	$ 28,595	$ 37,672
Per share data:
Basic	$ 1.48	$ 1.7	$ 2.95	$ 3.2
Diluted	1.48	1.68	2.95	3.18
Dividends declared	$ 0.625	$ 0.6175	$ 1.25	$ 1.235
Weighted average common shares outstanding:
Basic	10,010,529	9,994,955	10,006,737	9,993,944
Diluted	10,036,037	10,082,260	10,033,374	10,062,831
Service charges, fees, commissions and other
Noninterest income:
Revenue from contracts with customers	$ 3,411	$ 3,664	$ 6,568	$ 7,068
Merchant services income
Noninterest income:
Revenue from contracts with customers	489	584	669	815
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	588	563	1,139	1,100
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 753	$ 619	$ 1,399	$ 1,269

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 29,552	$ 31,965
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	1,838	1,610
Amortization of right-of-use lease asset	373	437
Amortization of net deferred loan fees	(251)	(307)
Amortization of debt issuance costs	204	31
Amortization of CDI and other intangibles	3,078	3,419
Amortization expense related to acquired borrowings	110	230
Accretion income related to acquired loans	(6,463)	(8,463)
Amortization expense related to acquired deposits	111	528
Amortization of low-income housing partnerships	1,855	868
Provision (benefit) for credit losses	4,492	(39)
Net unrealized gain on equity investments	(385)	(64)
Net (gain) loss on sale of other real estate owned	(14)	5
Net gain on sale of equity securities	(104)
Valuation allowance on other real estate	120
Loans originated for sale	(9,061)	(2,050)
Proceeds from sale of loans originated for sale	9,330	1,504
Net gain on sale of loans originated for sale	(182)	(1)
Net accretion of investment securities	(1,662)	(1,936)
Net gain on sale of investment securities available for sale	(510)
Net gain on sale of premises and equipment	(271)	(680)
Increase in cash surrender value of life insurance	(997)	(1,061)
Gain from bank owned life insurance settlement	(280)	(118)
Deferred income tax expense	919	2,449
Stock compensation, including tax effects and expenses	655	(207)
Net change in:
Accrued interest receivable	(137)	(222)
Other assets	(16,069)	2,170
Accrued interest payable	(2,065)	(863)
Other liabilities	7,976	(6,241)
Net cash provided by operating activities	22,162	22,964
Cash flows from investing activities:
Proceeds from sales of investment securities available for sale	32,404
Proceeds from sales of equity investments	340
Proceeds from repayments of investment securities:
Available for sale	45,724	58,794
Held to maturity	3,277	2,997
Purchases of investment securities:
Available for sale	(22,952)	(28,229)
Net purchase of restricted equity securities	(1,874)	(1,491)
(Purchase) redemption of equity securities without readily determinable fair value	(92)	22
Net (increase) decrease in loans	(230,398)	3,903
Purchases of premises and equipment	(3,517)	(5,890)
Proceeds from the sale of premises and equipment	733	3,696
Proceeds from bank owned life insurance	6,790	968
Proceeds from sale of other real estate owned	235
Net cash (used in) provided by investing activities	(169,330)	34,770
Cash flows from financing activities:
Increase (decrease) in deposits	74,672	(120,731)
Proceeds from long-term debt	45,045	15,284
Repayment of long-term debt	(24,981)	(10,653)
Net proceeds from short-term borrowings	52,610	60,440
Proceeds from the issuance of subordinated debt, net of issuance costs		83,133
Repayment of subordinated debt		(33,000)
Cash paid for shares withheld for taxes on compensation	(416)
Cash dividends paid	(12,496)	(12,319)
Net cash provided by (used in) financing activities	134,434	(17,846)
Net (decrease) increase in cash and cash equivalents	(12,734)	39,888
Cash and cash equivalents at beginning of period	268,984	135,851
Cash and cash equivalents at end of period	256,250	175,739
Supplemental disclosures:
Interest	46,050	46,879
Income taxes	4,178	3,683
Noncash items:
Origination of mortgage servicing rights	135	19
Initial recognition of right-of-use assets	183	2,786
Initial recognition of lease liability	$ 183	$ 2,786

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Cash and cash equivalents
Cash and due from banks	$ 74,930	$ 58,420
Interest-bearing deposits in other banks	181,320	210,564
Total cash and cash equivalents	256,250	268,984
Investment securities:
Available for sale: Amortized cost of $488,750 and $541,707, respectively, net of allowance for credit losses of $0 at June 30, 2026, and December 31, 2025	458,144	512,563
Held to maturity: Fair value of $59,311 and $62,798, respectively, net of allowance for credit losses of $0 at June 30, 2026, and December 31, 2025	68,723	72,047
Equity investments carried at fair value	2,748	2,598
Total investment securities	529,615	587,208
Loans	4,302,821	4,066,896
Less: allowance for credit losses	42,311	39,007
Net loans	4,260,510	4,027,889
Loans held for sale	718	805
Goodwill	75,986	75,986
Premises and equipment, net	79,523	78,496
Bank owned life insurance	83,124	88,645
Deferred tax assets	25,905	26,555
Accrued interest receivable	17,770	17,633
Intangible assets, net	24,622	27,700
Other assets	86,523	70,677
Total assets	5,440,546	5,270,578
Deposits:
Noninterest-bearing	946,528	954,485
Interest-bearing	3,562,324	3,479,584
Total deposits	4,508,852	4,434,069
Short-term borrowings	85,331	32,721
Long-term debt	154,472	134,352
Subordinated debt	83,392	83,187
Junior subordinated debt	8,194	8,140
Accrued interest payable	4,727	6,792
Other liabilities	59,393	51,470
Total liabilities	4,904,361	4,750,731
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 10,010,367, shares at June 30, 2026, and 9,994,595 shares at December 31, 2025	20,053	20,015
Capital surplus	251,224	251,023
Retained earnings	290,556	273,500
Accumulated other comprehensive loss	(25,648)	(24,691)
Total stockholders' equity	536,185	519,847
Total liabilities and stockholders' equity	$ 5,440,546	$ 5,270,578