Peoples Financial Services Corp. Reports First Quarter 2015 Earnings
SCRANTON, Pa., April 22, 2015 /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 months ended March 31, 2015. Peoples reported net income of $5.0 million, or $0.67 per basic and diluted weighted average share for the first quarter of 2015, compared to net income of $4.7 million, or $0.62 per share, for the comparable period of 2014. The results for the three months ended March 31, 2014, include pre-tax acquisition related expenses of $608 thousand. Gains on sale of investment securities were $832 thousand for the three months ended March 31, 2015, while there were no gains recognized for the comparable period in 2014.
Core net income for the three months ended March 31, 2015 was $4.5 million, a $590 thousand decrease from $5.1 million for the same period in 2014. Core net income per share for the three months ended March 31, 2015 was $0.60, compared to $0.67 for the same period in 2014.
In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("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 for 2015 and 2014 contained items which Peoples considers non-core, namely net gains on sales of investment securities available-for-sale and one-time acquisition related expenses. 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.
FIRST QUARTER NOTABLES
- Entrance into Luzerne County market through the acquisition of a commercial property located in Kingston, PA. The office is expected to be fully operational by the first quarter 2016.
- Successful first full quarter of operations in newly established Lehigh Valley market through the origination of $36.5 million in loans and acquisition of $3.2 million in deposits at March 31, 2015.
- Initiated process of reconstitution of the Wealth Management Division and Trust Department of Peoples Security Bank and Trust Company under the direction of a professional with 31 years of experience in reengineering fiduciary and investment advisory service functions.
- Nonperforming assets to loans, net, and foreclosed assets was relatively constant at 0.91% at the end of the first quarter of 2015 compared to the end of the prior quarter and improved significantly from 1.30% at quarter end March 31, 2014.
- Loans, net grew $27.3 million or 9.1% on an annualized basis in the first quarter of 2015 following growth of $30.0 million or 10.0% on an annualized basis in the fourth quarter of 2014.
- Tangible book value per share improved $1.08 to $23.96 at the end of the first quarter of 2015 compared to $22.88 at March 31, 2014.
INCOME STATEMENT REVIEW
The tax-equivalent net interest margin for the quarter ended March 31, 2015 was 3.88% compared to 4.09% in 2014. Loan accretion included in loan interest income in the first quarter of 2015, related to loans acquired in the fourth quarter of 2013, was $225 thousand, resulting in an increase in the tax-equivalent net interest margin of 6 basis points. For the first quarter of 2014, loan accretion related to loans acquired was $1.1 million including accretion recognized on loan payoffs, resulting in an increase in the tax-equivalent net interest margin of 29 basis points.
Tax-equivalent net interest income for the quarter ended March 31, decreased $706 thousand to $14.8 million in 2015 from $15.5 million in 2014. The decrease in tax equivalent net interest income was primarily due to the decrease in loan accretion for the first quarter of 2015, compared to the same period of 2014. The tax-equivalent yield on the loan portfolio decreased to 4.70% for the first quarter of 2015 compared to 5.14%, for the comparable period in 2014. For the first quarter, loans, net averaged $1.2 billion in both 2015 and 2014. For the quarter ended March 31, the tax-equivalent yield on total investments decreased to 2.78% in 2015, from 2.81% in 2014. Average investments totaled $313.1 million in the first quarter of 2015 and $319.8 million in the first quarter of 2014. The cost of funds declined to 0.54% in the three months ended March 31, 2015 from 0.59%, for the same period of 2014. Average interest-bearing liabilities were constant at $1.2 billion for the quarters ended March 31, 2015 and 2014.
The provision for loan losses was $750 thousand for the quarter ended March 31, 2015, compared to $857 thousand for the same period last year. The reduction in the provision for loan losses in 2015 was due to the application of our allowance for loan losses methodology, which was primarily influenced by reporting a lower level of nonperforming assets as a percentage of loans and foreclosed assets compared to the prior year period.
For the quarter ended March 31, noninterest income totaled $4.3 million in 2015 and $3.6 million in 2014. Increases in wealth management services and mortgage banking activities offset decreases in service charges, fees and commissions, revenues from merchant services and income from fiduciary activities. Net gains on sale of investment securities were $832 thousand, for the three months ended March 31, 2015, compared to no gains for the comparable period in 2014.
Noninterest expense for the first quarter of 2015 decreased to $11.1 million from $11.3 million for the same period in 2014. The recognition of acquisition related expense of $608 thousand, in the first quarter of 2014, was the primary cause for this decrease as there was no comparable expense for the first quarter of 2015. The remaining categories of noninterest expense increased in total by $415 thousand. Increases in employee related costs and net occupancy expenses were partially offset by decreases in merchant services expense, amortization of intangible assets and other expenses.
BALANCE SHEET REVIEW
Total assets decreased $27.5 million or 6.4% on an annualized basis for the quarter ended March 31, 2015. Strong loan demand resulted in an increase in loans, net of $27.3 million or 9.1% on an annualized basis in the first quarter of 2015. The increase was attributable to organic growth fostered through our entrance into the Lehigh Valley market as well as renewed interest in business lending in existing markets. The loan growth was funded through the sale of certain investment securities available for sale. Total investments declined to $294.5 million at March 31, 2015 from $354.3 million at the end of 2014. Along with the increase in loans and the decrease to investment securities, deposits decreased $9.3 million for the first quarter of 2015 while short-term, overnight borrowings decreased $19.6 million. The majority of the decline in deposits was in noninterest bearing deposits, which decreased 10.9% on an annualized basis to $305.0 million at March 31, 2015 compared to $313.5 million at the end of 2014.
Stockholders' equity equaled $249.5 million or $33.05 per share at March 31, 2015, and $246.8 million or $32.69 per share at December 31, 2014. Total tangible stockholders' equity improved to $180.9 million or $23.96 per share at March 31, 2015, compared to $177.9 million or $23.57 per share at December 31, 2014. Stockholders' equity grew $2.7 million in the first quarter of 2015 as net income was partially offset by dividends and an increase in accumulated other comprehensive loss. Dividends declared for the three months ended March 31, 2015 amounted to $0.31 per share. The dividend payout ratio was of 46.4% in the first quarter of 2015.
ASSET QUALITY REVIEW
Nonperforming assets were $11.3 million or 0.91% of loans, net and foreclosed assets at March 31, 2015, a slight degradation from $10.9 million or 0.90% at December 31, 2014, and an improvement from $15.3 million or 1.30% at March 31, 2014. The allowance for loan losses equaled $10.8 million or 0.87% of loans, net at March 31, 2015, compared to $10.3 million or 0.85% of loans, net, at December 31, 2014, and $8.9 million or 0.75% of loans, net, at March 31, 2014. Loans charged-off, net of recoveries, for the three months ended March 31, 2015, equaled $285 thousand or 0.09% of average loans, compared to $649 thousand or 0.22% of average loans for the comparable period last year.
Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving Lackawanna, Lehigh, Luzerne, Monroe, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 26 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; 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 per share data) |
|||||
| Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
Mar 31 |
|
| 2015 |
2014 |
2014 |
2014 |
2014 |
|
| Key performance data: |
|||||
| Per share data: |
|||||
| Net income |
$ 0.67 |
$ 0.58 |
$ 0.70 |
$ 0.44 |
$ 0.62 |
| Core net income (1) |
$ 0.60 |
$ 0.58 |
$ 0.65 |
$ 0.51 |
$ 0.67 |
| Cash dividends declared |
$ 0.31 |
$ 0.31 |
$ 0.31 |
$ 0.31 |
$ 0.31 |
| Book value |
$33.05 |
$32.69 |
$32.60 |
$32.35 |
$32.13 |
| Tangible book value (1) |
$23.96 |
$23.57 |
$23.43 |
$23.14 |
$22.88 |
| Market value: |
|||||
| High |
$49.26 |
$52.52 |
$52.52 |
$53.05 |
$42.26 |
| Low |
$39.35 |
$44.17 |
$45.99 |
$42.50 |
$37.85 |
| Closing |
$44.87 |
$49.68 |
$45.99 |
$51.39 |
$41.62 |
| Market capitalization |
$338,695 |
$375,002 |
$347,149 |
$387,910 |
$314,163 |
| Common shares outstanding |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
| Selected ratios: |
|||||
| Return on average stockholders' equity |
8.28% |
7.06% |
8.49% |
5.60% |
8.01% |
| Core return on average stockholders' equity (1) |
7.40% |
7.06% |
7.87% |
6.52% |
8.68% |
| Return on average tangible stockholders' equity (1) |
11.93% |
10.28% |
12.34% |
8.42% |
11.89% |
| Core return on average tangible stockholders' equity (1) |
10.25% |
9.81% |
10.98% |
9.21% |
12.30% |
| Return on average assets |
1.20% |
1.01% |
1.20% |
0.78% |
1.12% |
| Core return on average assets (1) |
1.07% |
1.01% |
1.11% |
0.91% |
1.22% |
| Stockholders' equity to total assets |
14.55% |
14.17% |
14.27% |
14.10% |
14.12% |
| Efficiency ratio (2) |
58.63% |
61.81% |
56.79% |
67.91% |
59.79% |
| Nonperforming assets to loans, net, and foreclosed assets |
0.91% |
0.90% |
1.11% |
1.35% |
1.30% |
| Net charge-offs to average loans, net |
0.09% |
0.21% |
0.04% |
0.15% |
0.22% |
| Allowance for loan losses to loans, net |
0.87% |
0.85% |
0.86% |
0.82% |
0.75% |
| Earning assets yield (FTE) (3) |
4.28% |
4.19% |
4.25% |
4.17% |
4.53% |
| Cost of funds |
0.54% |
0.54% |
0.56% |
0.59% |
0.59% |
| Net interest spread (FTE) (3) |
3.74% |
3.65% |
3.69% |
3.58% |
3.94% |
| Net interest margin (FTE) (3) |
3.88% |
3.79% |
3.84% |
3.73% |
4.09% |
| (1) See Reconciliation of Non-GAAP financial measures. |
|||||
| (2) Total noninterest expense less amortization of intangible assets divided by net interest income and noninterest income. |
|||||
| (3) Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate. |
|||||
| Peoples Financial Services Corp. |
||
| Consolidated Statements of Income |
||
| (In thousands, except per share data) |
||
| Three Months Ended |
Mar 31 |
Mar 31 |
| 2015 |
2014 |
|
| Interest income: |
||
| Interest and fees on loans: |
||
| Taxable |
$13,340 |
$14,000 |
| Tax-exempt |
559 |
635 |
| Interest and dividends on investment securities: |
||
| Taxable |
900 |
928 |
| Tax-exempt |
805 |
829 |
| Dividends |
9 |
16 |
| Interest on interest-bearing deposits in other banks |
8 |
10 |
| Interest on federal funds sold |
7 |
14 |
| Total interest income |
15,628 |
16,432 |
| Interest expense: |
||
| Interest on deposits |
1,268 |
1,357 |
| Interest on short-term borrowings |
8 |
34 |
| Interest on long-term debt |
259 |
296 |
| Total interest expense |
1,535 |
1,687 |
| Net interest income |
14,093 |
14,745 |
| Provision for loan losses |
750 |
857 |
| Net interest income after provision for loan losses |
13,343 |
13,888 |
| Noninterest income: |
||
| Service charges, fees, commissions |
1,612 |
1,624 |
| Merchant services income |
790 |
894 |
| Commissions and fees on fiduciary activities |
459 |
567 |
| Wealth management income |
205 |
187 |
| Mortgage banking income |
222 |
99 |
| Life insurance investment income |
189 |
189 |
| Net gains on sale of investment securities available-for-sale |
832 |
|
| Total noninterest income |
4,309 |
3,560 |
| Noninterest expense: |
||
| Salaries and employee benefits expense |
5,233 |
5,168 |
| Net occupancy and equipment expense |
2,468 |
1,733 |
| Merchant services expense |
533 |
565 |
| Amortization of intangible assets |
305 |
343 |
| Acquisition related expenses |
608 |
|
| Other expenses |
2,555 |
2,870 |
| Total noninterest expense |
11,094 |
11,287 |
| Income before income taxes |
6,558 |
6,161 |
| Provision for income tax expense |
1,514 |
1,463 |
| Net income |
$5,044 |
$4,698 |
| Other comprehensive income (loss): |
||
| Unrealized gains (losses) on investment securities available-for-sale |
$767 |
$2,394 |
| Reclassification adjustment for gains included in net income |
(832) |
|
| Income tax expense (benefit) related to other comprehensive income |
(23) |
838 |
| Other comprehensive income (loss), net of income taxes |
(42) |
1,556 |
| Comprehensive income |
$5,002 |
$6,254 |
| Per share data: |
||
| Net income |
$0.67 |
$0.62 |
| Cash dividends declared |
$0.31 |
$0.31 |
| Average common shares outstanding |
7,548,358 |
7,550,253 |
| Peoples Financial Services Corp. |
|||||
| Consolidated Statements of Income |
|||||
| (In thousands, except per share data) |
|||||
| Three months ended |
Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
March 31 |
| 2015 |
2014 |
2014 |
2014 |
2014 |
|
| Interest income: |
|||||
| Interest and fees on loans: |
|||||
| Taxable |
$13,340 |
$13,281 |
$13,876 |
$13,159 |
$14,000 |
| Tax-exempt |
559 |
658 |
465 |
507 |
635 |
| Interest and dividends on investment securities available-for-sale: |
|||||
| Taxable |
900 |
1,069 |
1,007 |
942 |
928 |
| Tax-exempt |
805 |
809 |
816 |
817 |
829 |
| Dividends |
9 |
18 |
2 |
14 |
16 |
| Interest on interest-bearing deposits in other banks |
8 |
9 |
10 |
9 |
10 |
| Interest on federal funds sold |
7 |
6 |
16 |
34 |
14 |
| Total interest income |
15,628 |
15,850 |
16,192 |
15,482 |
16,432 |
| Interest expense: |
|||||
| Interest on deposits |
1,268 |
1,306 |
1,354 |
1,414 |
1,357 |
| Interest on short-term borrowings |
8 |
4 |
9 |
24 |
34 |
| Interest on long-term debt |
259 |
276 |
279 |
289 |
296 |
| Total interest expense |
1,535 |
1,586 |
1,642 |
1,727 |
1,687 |
| Net interest income |
14,093 |
14,264 |
14,550 |
13,755 |
14,745 |
| Provision for loan losses |
750 |
800 |
666 |
1,201 |
857 |
| Net interest income after provision for loan losses |
13,343 |
13,464 |
13,884 |
12,554 |
13,888 |
| Noninterest income: |
|||||
| Service charges, fees, commissions |
1,612 |
1,669 |
1,634 |
1,557 |
1,624 |
| Merchant services income |
790 |
765 |
1,002 |
888 |
894 |
| Commissions and fees on fiduciary activities |
459 |
489 |
575 |
548 |
567 |
| Wealth management income |
205 |
183 |
217 |
165 |
187 |
| Mortgage banking income |
222 |
214 |
142 |
193 |
99 |
| Life insurance investment income |
189 |
213 |
109 |
267 |
189 |
| Net gains on sale of investment securities available-for-sale |
832 |
701 |
160 |
||
| Total noninterest income |
4,309 |
3,533 |
4,380 |
3,778 |
3,560 |
| Noninterest expense: |
|||||
| Salaries and employee benefits expense |
5,233 |
5,769 |
4,754 |
4,961 |
5,168 |
| Net occupancy and equipment expense |
2,468 |
2,022 |
2,020 |
2,327 |
1,733 |
| Merchant services expense |
533 |
514 |
662 |
495 |
565 |
| Amortization of intangible assets |
305 |
324 |
334 |
333 |
343 |
| Acquisition related expenses |
109 |
1,008 |
608 |
||
| Other expenses |
2,555 |
2,694 |
3,205 |
3,115 |
2,870 |
| Total noninterest expense |
11,094 |
11,323 |
11,084 |
12,239 |
11,287 |
| Income before income taxes |
6,558 |
5,674 |
7,180 |
4,093 |
6,161 |
| Income tax expense |
1,514 |
1,290 |
1,944 |
762 |
1,463 |
| Net income |
5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Other comprehensive income (loss): |
|||||
| Unrealized gains (losses) on investment securities available-for-sale |
767 |
$1,532 |
$ (825) |
$1,242 |
$2,394 |
| Reclassification adjustment for gains included in net income |
(832) |
(701) |
(160) |
||
| Change in pension liability |
(3,684) |
||||
| Income tax expense (benefit) related to other comprehensive income (loss) |
(23) |
(753) |
(534) |
378 |
838 |
| Other comprehensive income (loss), net of income taxes |
(42) |
(1,399) |
(992) |
704 |
1,556 |
| Comprehensive income (loss) |
$5,002 |
$2,985 |
$4,244 |
$4,035 |
$6,254 |
| Per share data: |
|||||
| Net income |
$0.67 |
$0.58 |
$0.70 |
$0.44 |
$0.62 |
| Cash dividends declared |
$0.31 |
$0.31 |
$0.31 |
$0.31 |
$0.31 |
| Average common shares outstanding |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
7,550,253 |
| Peoples Financial Services Corp. |
|||||
| Details of Net Interest and Net Interest Margin |
|||||
| (In thousands, fully taxable equivalent basis) |
|||||
| Three months ended |
Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
March 31 |
| 2015 |
2014 |
2014 |
2014 |
2014 |
|
| Net interest income: |
|||||
| Interest income |
|||||
| Loans, net: |
|||||
| Taxable |
$13,340 |
$13,281 |
$13,876 |
$13,159 |
$14,000 |
| Tax-exempt |
860 |
1,013 |
715 |
779 |
978 |
| Total loans, net |
14,200 |
14,294 |
14,591 |
13,938 |
14,978 |
| Investments: |
|||||
| Taxable |
909 |
1,087 |
1,009 |
956 |
944 |
| Tax-exempt |
1,238 |
1,244 |
1,256 |
1,258 |
1,274 |
| Total investments |
2,147 |
2,331 |
2,265 |
2,214 |
2,218 |
| Interest on interest-bearing balances in other banks |
8 |
9 |
10 |
9 |
10 |
| Federal funds sold |
7 |
6 |
16 |
34 |
14 |
| Total interest income |
16,362 |
16,640 |
16,882 |
16,195 |
17,220 |
| Interest expense: |
|||||
| Deposits |
1,268 |
1,306 |
1,354 |
1,414 |
1,357 |
| Short-term borrowings |
8 |
4 |
9 |
24 |
34 |
| Long-term debt |
259 |
276 |
279 |
289 |
296 |
| Total interest expense |
1,535 |
1,586 |
1,642 |
1,727 |
1,687 |
| Net interest income |
$14,827 |
$15,054 |
$15,240 |
$14,468 |
$15,533 |
| Loans, net: |
|||||
| Taxable |
4.68% |
4.67% |
4.88% |
4.69% |
5.18% |
| Tax-exempt |
4.96% |
5.85% |
5.05% |
4.94% |
4.69% |
| Total loans, net |
4.70% |
4.74% |
4.89% |
4.71% |
5.14% |
| Investments: |
|||||
| Taxable |
1.68% |
1.63% |
1.57% |
1.72% |
1.77% |
| Tax-exempt |
5.36% |
5.20% |
5.10% |
5.15% |
4.99% |
| Total investments |
2.78% |
2.57% |
2.55% |
2.77% |
2.81% |
| Interest-bearing balances with banks |
1.19% |
0.34% |
0.68% |
0.83% |
0.55% |
| Federal funds sold |
0.33% |
0.31% |
0.19% |
0.31% |
0.18% |
| Total earning assets |
4.28% |
4.19% |
4.25% |
4.17% |
4.53% |
| Interest expense: |
|||||
| Deposits |
0.46% |
0.46% |
0.48% |
0.51% |
0.50% |
| Short-term borrowings |
0.31% |
0.14% |
0.42% |
0.51% |
0.65% |
| Long-term debt |
3.21% |
3.26% |
3.21% |
3.27% |
3.30% |
| Total interest-bearing liabilities |
0.54% |
0.54% |
0.56% |
0.59% |
0.59% |
| Net interest spread |
3.74% |
3.65% |
3.69% |
3.58% |
3.94% |
| Net interest margin |
3.88% |
3.79% |
3.84% |
3.73% |
4.09% |
| Peoples Financial Services Corp. |
|||||
| Consolidated Balance Sheets |
|||||
| (In thousands, except per share data) |
|||||
| Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
March 31 |
|
| At period end |
2015 |
2014 |
2014 |
2014 |
2014 |
| Assets: |
|||||
| Cash and due from banks |
$ 24,193 |
$ 24,656 |
$ 21,179 |
$ 51,416 |
$ 26,204 |
| Interest-bearing balances in other banks |
6,813 |
6,770 |
6,932 |
10,592 |
7,168 |
| Federal funds sold |
8,625 |
6,100 |
15,400 |
45,840 |
|
| Investment securities: |
|||||
| Available-for-sale |
280,300 |
339,586 |
350,825 |
312,323 |
302,226 |
| Held-to-maturity |
14,172 |
14,665 |
15,264 |
15,915 |
16,607 |
| Total investments |
294,472 |
354,251 |
366,089 |
328,238 |
318,833 |
| Loans held for sale |
3,101 |
3,486 |
2,961 |
2,757 |
1,816 |
| Loans, net |
1,237,168 |
1,209,894 |
1,179,942 |
1,179,847 |
1,177,122 |
| Less: allowance for loan losses |
10,803 |
10,338 |
10,171 |
9,622 |
8,859 |
| Net loans |
1,226,365 |
1,199,556 |
1,169,771 |
1,170,225 |
1,168,263 |
| Premises and equipment, net |
26,117 |
25,433 |
25,692 |
25,670 |
25,579 |
| Accrued interest receivable |
4,922 |
5,580 |
5,381 |
5,576 |
5,366 |
| Goodwill |
63,370 |
63,370 |
63,370 |
63,370 |
63,370 |
| Other intangible assets, net |
5,197 |
5,501 |
5,826 |
6,159 |
6,492 |
| Other assets |
50,966 |
53,066 |
51,477 |
51,703 |
49,330 |
| Total assets |
$1,714,141 |
$1,741,669 |
$1,724,778 |
$1,731,106 |
$1,718,261 |
| Liabilities: |
|||||
| Deposits: |
|||||
| Noninterest-bearing |
$ 305,037 |
$ 313,498 |
$ 302,279 |
$ 295,922 |
$ 282,060 |
| Interest-bearing |
1,111,241 |
1,112,060 |
1,123,349 |
1,126,880 |
1,122,006 |
| Total deposits |
1,416,278 |
1,425,558 |
1,425,628 |
1,422,802 |
1,404,066 |
| Short-term borrowings |
19,557 |
6,514 |
14,088 |
22,539 |
|
| Long-term debt |
32,318 |
33,140 |
34,020 |
34,925 |
35,838 |
| Accrued interest payable |
460 |
574 |
597 |
580 |
610 |
| Other liabilities |
15,627 |
16,061 |
11,950 |
14,546 |
12,643 |
| Total liabilities |
1,464,683 |
1,494,890 |
1,478,709 |
1,486,941 |
1,475,696 |
| Stockholders' equity: |
|||||
| Common stock |
15,097 |
15,097 |
15,097 |
15,097 |
15,607 |
| Capital surplus |
140,232 |
140,214 |
140,150 |
140,150 |
146,035 |
| Retained earnings |
95,000 |
92,297 |
90,252 |
87,356 |
86,365 |
| Accumulated other comprehensive income (loss) |
(871) |
(829) |
570 |
1,562 |
858 |
| Less: Treasury stock, at cost |
6,300 |
||||
| Total stockholders' equity |
249,458 |
246,779 |
246,069 |
244,165 |
242,565 |
| Total liabilities and stockholders' equity |
$1,714,141 |
$1,741,669 |
$1,724,778 |
$1,731,106 |
$1,718,261 |
| Peoples Financial Services Corp. |
|||||
| Consolidated Balance Sheets |
|||||
| (In thousands except per share data) |
|||||
| Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
March 31 |
|
| Average quarterly balances |
2015 |
2014 |
2014 |
2014 |
2014 |
| Assets: |
|||||
| Loans, net: |
|||||
| Taxable |
$1,155,435 |
$1,127,719 |
$1,127,888 |
$1,124,273 |
$1,096,793 |
| Tax-exempt |
70,334 |
68,731 |
56,214 |
63,295 |
84,688 |
| Total loans, net |
1,225,769 |
1,196,450 |
1,184,102 |
1,187,568 |
1,181,481 |
| Investments: |
|||||
| Taxable |
219,360 |
265,132 |
254,556 |
223,220 |
216,173 |
| Tax-exempt |
93,715 |
94,870 |
97,822 |
97,879 |
103,625 |
| Total investments |
313,075 |
360,002 |
352,378 |
321,099 |
319,798 |
| Interest-bearing balances with banks |
2,718 |
10,620 |
5,875 |
4,342 |
7,327 |
| Federal funds sold |
8,674 |
7,663 |
34,227 |
44,553 |
32,444 |
| Total earning assets |
1,550,236 |
1,574,735 |
1,576,582 |
1,557,562 |
1,541,050 |
| Other assets |
161,103 |
149,001 |
152,821 |
150,877 |
154,020 |
| Total assets |
$1,711,339 |
$1,723,736 |
$1,729,403 |
$1,708,439 |
$1,695,070 |
| Liabilities and stockholders' equity: |
|||||
| Deposits: |
|||||
| Interest-bearing |
$1,109,914 |
$1,124,702 |
$1,126,915 |
$1,118,108 |
$1,109,085 |
| Noninterest-bearing |
298,166 |
300,287 |
303,441 |
288,015 |
274,584 |
| Total deposits |
1,408,080 |
1,424,989 |
1,430,356 |
1,406,123 |
1,383,669 |
| Short-term borrowings |
10,373 |
11,046 |
8,511 |
18,759 |
21,351 |
| Long-term debt |
32,726 |
33,612 |
34,510 |
35,419 |
36,330 |
| Other liabilities |
13,240 |
7,693 |
11,330 |
9,381 |
15,767 |
| Total liabilities |
1,464,419 |
1,477,340 |
1,484,707 |
1,469,682 |
1,457,117 |
| Stockholders' equity |
246,920 |
246,396 |
244,696 |
238,757 |
237,953 |
| Total liabilities and stockholders' equity |
$1,711,339 |
$1,723,736 |
$1,729,403 |
$1,708,439 |
$1,695,070 |
| Peoples Financial Services Corp. |
|||||
| Asset Quality Data |
|||||
| (In thousands) |
|||||
| Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
March 31 |
|
| At quarter end |
2015 |
2014 |
2014 |
2014 |
2014 |
| Nonperforming assets: |
|||||
| Nonaccrual/restructured loans |
$ 9,736 |
$ 8,699 |
$11,324 |
$13,616 |
$12,922 |
| Accruing loans past due 90 days or more |
1,237 |
1,623 |
955 |
1,693 |
1,663 |
| Foreclosed assets |
324 |
561 |
840 |
626 |
678 |
| Total nonperforming assets |
$11,297 |
$10,883 |
$13,119 |
$15,935 |
$15,263 |
| Three months ended |
|||||
| Allowance for loan losses: |
|||||
| Beginning balance |
$10,338 |
$10,171 |
$ 9,622 |
$ 8,859 |
$ 8,651 |
| Charge-offs |
365 |
641 |
177 |
790 |
683 |
| Recoveries |
80 |
8 |
60 |
352 |
34 |
| Provision for loan losses |
750 |
800 |
666 |
1,201 |
857 |
| Ending balance |
$10,803 |
$10,338 |
$10,171 |
$ 9,622 |
$ 8,859 |
| Peoples Financial Services Corp. |
|||||
| Reconciliation of Non-GAAP Financial Measures |
|||||
| (In thousands, except per share data) |
|||||
| Mar 31 |
Dec 31 |
Sept 30 |
June 30 |
Mar 31 |
|
| 2015 |
2014 |
2014 |
2014 |
2014 |
|
| Three months ended |
|||||
| Core net income (loss) per share: |
|||||
| Net income (loss) GAAP |
$5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Adjustments: |
|||||
| Less: Gains on sale of investment securities, net of tax |
541 |
456 |
104 |
||
| Add: Acquisition related expenses, net of tax |
71 |
655 |
395 |
||
| Net income (loss) Core |
$4,503 |
$4,384 |
$4,851 |
$3,882 |
$5,093 |
| Average common shares outstanding |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
7,550,253 |
| Core net income (loss) per share |
$0.60 |
$0.58 |
$0.65 |
$0.51 |
$0.67 |
| Tangible book value: |
|||||
| Total stockholders' equity |
$249,458 |
$246,779 |
$246,069 |
$244,165 |
$242,565 |
| Less: Goodwill |
63,370 |
63,370 |
63,370 |
63,370 |
63,370 |
| Less: Other intangible assets, net |
5,197 |
5,501 |
5,826 |
6,159 |
6,492 |
| Total tangible stockholders' equity |
$180,891 |
$177,908 |
$176,873 |
$174,636 |
$172,703 |
| Common shares outstanding |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
7,548,358 |
| Tangible book value per share |
$23.96 |
$23.57 |
$23.43 |
$23.14 |
$22.88 |
| Core return on average stockholders' equity: |
|||||
| Net income (loss) GAAP |
$5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Adjustments: |
|||||
| Less: Gains on sale of investment securities, net of tax |
541 |
456 |
104 |
||
| Add: Acquisition related expenses, net of tax |
71 |
655 |
395 |
||
| Net income (loss) Core |
$4,503 |
$4,384 |
$4,851 |
$3,882 |
$5,093 |
| Average stockholders' equity |
$246,920 |
$246,396 |
$244,696 |
$238,757 |
$237,953 |
| Core return on average stockholders' equity |
7.40% |
7.06% |
7.87% |
6.52% |
8.68% |
| Return on average tangible equity: |
|||||
| Net income (loss) GAAP |
$5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Amortization of intangibles, net of tax |
198 |
210 |
217 |
216 |
223 |
| Adjusted net income (loss) |
$5,242 |
$4,594 |
$5,453 |
$3,547 |
$4,921 |
| Average stockholders' equity |
$246,920 |
$246,396 |
$244,696 |
$238,757 |
$237,953 |
| Less: average intangibles |
68,719 |
69,034 |
69,363 |
69,696 |
70,034 |
| Average tangible stockholders' equity |
$178,201 |
$177,362 |
$175,333 |
$169,061 |
$167,919 |
| Return on average tangible stockholders' equity |
11.93% |
10.28% |
12.34% |
8.42% |
11.89% |
| Core return on average tangible stockholders' equity: |
|||||
| Net income (loss) GAAP |
$5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Adjustments: |
|||||
| Less: Gains on sale of investment securities, net of tax |
541 |
456 |
104 |
||
| Add: Acquisition related expenses, net of tax |
71 |
655 |
395 |
||
| Net income (loss) Core |
$4,503 |
$4,384 |
$4,851 |
$3,882 |
$5,093 |
| Average stockholders' equity |
$246,920 |
$246,396 |
$244,696 |
$238,757 |
$237,953 |
| Less: average intangibles |
68,719 |
69,034 |
69,363 |
69,696 |
70,034 |
| Average tangible stockholders' equity |
$178,201 |
$177,362 |
$175,333 |
$169,061 |
$167,919 |
| Core return on average tangible stockholders' equity |
10.25% |
9.81% |
10.98% |
9.21% |
12.30% |
| Core return on average assets: |
|||||
| Net income (loss) GAAP |
$5,044 |
$4,384 |
$5,236 |
$3,331 |
$4,698 |
| Adjustments: |
|||||
| Less: Gains on sale of investment securities, net of tax |
541 |
456 |
104 |
||
| Add: Acquisition related expenses, net of tax |
71 |
655 |
395 |
||
| Net income (loss) Core |
$4,503 |
$4,384 |
$4,851 |
$3,882 |
$5,093 |
| Average assets |
$1,711,339 |
$1,723,736 |
$1,729,403 |
$1,708,439 |
$1,695,070 |
| Core return on average assets |
1.07% |
1.01% |
1.11% |
0.91% |
1.22% |
| Peoples Financial Services Corp. |
|||
| Reconciliation of Non-GAAP Financial Measures |
|||
| (In thousands, except per share data) |
|||
| Mar 31 |
Mar 31 |
||
| 2015 |
2014 |
||
| Three months ended |
|||
| Core net income (loss) per share: |
|||
| Net income (loss) GAAP |
$5,044 |
$4,698 |
|
| Adjustments: |
|||
| Less: Gains on sale of investment securities, net of tax |
541 |
||
| Add: Acquisition related expenses, net of tax |
395 |
||
| Net income (loss) Core |
$4,503 |
$5,093 |
|
| Average common shares outstanding |
7,548,358 |
7,550,253 |
|
| Core net income (loss) per share |
$0.60 |
$0.67 |
|
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SOURCE Peoples Financial Services Corp.
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