Peoples Financial Services Corp. Reports Fourth Quarter 2015 Earnings

Feb 02, 2016, 16:15 ET from Peoples Financial Services Corp.

SCRANTON, Pa., Feb. 2, 2016 /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 and year ended December 31, 2015. Peoples reported net income of $3.8 million, or $0.52 per basic and diluted weighted average share for the fourth quarter of 2015, compared to $4.4 million, or $0.58 per share, for each of the third quarter of 2015 and fourth quarter of 2014. Other expenses in the fourth quarter of 2015 included a charge for the disposal of a nonrecoverable asset attributable to the dissolution of Penseco Realty, Inc. which reduced net income by $440.7 thousand or $0.06 per share.

Core net income, excluding net gains on sale of investment securities available-for-sale, for the three months ended December 31, 2015 was $3.7 million, a decrease from $4.3 million for the third quarter of 2015 and $4.4 million for the fourth quarter of 2014. Core net income per share for the three months ended December 31, 2015 was $0.50, compared to $0.57 for the third quarter of 2015 and $0.58 for the fourth quarter of 2014.

Net income for the year ended December 31, 2015, totaled $17.7 million or $2.36 per share compared to $17.6 million or $2.34 per share for 2014. The results for 2015 include net gains on sale of investment securities of $1.2 million compared to $0.9 million during 2014. Pre-tax acquisition related expenses recognized for the year ended December 31, 2014 approximated $1.7 million. Core net income for 2015 was $17.0 million, compared to $18.2 million for 2014. Core net income per share for 2015 was $2.26, a decrease from $2.41 for 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 three and twelve month periods included herein contain 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.

NOTABLES

  • Loans, net grew $70.3 million in the fourth quarter of 2015 as demand increased throughout all markets.
  • Deposits grew $11.2 million in the fourth quarter of 2015.
  • Tangible book value per share increased to $24.29 at December 31, 2015 from $23.57 at December 31, 2014.
  • Tax-equivalent net interest margin increased 5 basis points in the fourth quarter of 2015 to 3.79% compared to 3.74% for the quarter ended September 30, 2015 and was unchanged from the fourth quarter of 2014 at 3.79%.
  • Tax-equivalent net interest income increased $538.0 thousand for the fourth quarter of 2015 to $15.4 million compared to $14.9 million for the third quarter of 2015 and increased $375.0 thousand compared to $15.1 million for the fourth quarter of 2014.
  • The effective tax rate for the year ended December 31, 2015 decreased to 20.3% from 23.6% in 2014.
  • The Company established a loan production office located in King of Prussia, Montgomery County, Pennsylvania in the fourth quarter of 2015.
  • Peoples Security Wealth Management Group acquired Gilmartin Associates, an asset management and retirement plan services company with $120.0 million of assets under management in the fourth quarter of 2015.

INCOME STATEMENT REVIEW

The tax-equivalent net interest margins for the three and twelve months ended December 31, were 3.79% and 3.81% in 2015, compared to 3.79% and 3.86% in 2014, respectively. Loan accretion included in loan interest income for the three and twelve months ended December 31, 2015 related to loans acquired in the fourth quarter of 2013 was $190.6 thousand and $665.5 thousand, resulting in an increase in the tax-equivalent net interest margin of 5 and 4 basis points, respectively. Comparatively, loan accretion included in loan interest income for the three and twelve months ended December 31, 2014 was $240.0 thousand and $2.1 million, resulting in an increase in the tax-equivalent net interest margin of 6 and 14 basis points, respectively.

Tax-equivalent net interest income for the quarter ended December 31, increased $375.0 thousand to $15.4 million in 2015 from $15.1 million in 2014.  The tax-equivalent yield on the loan portfolio decreased to 4.52% for the fourth quarter of 2015 compared to 4.74% for the comparable period in 2014. For the fourth quarter, loans, net averaged $1.3 billion in 2015 compared to $1.2 billion in 2014. For the quarter ended December 31, the tax-equivalent yield on total investments increased to 2.74% in 2015 from 2.57% in 2014. Average investments totaled $300.3 million in the fourth quarter of 2015 and $360.0 million in the fourth quarter of 2014. The cost of funds declined to 0.51% in the three months ended December 31, 2015 from 0.54% for the same period of 2014. Average interest-bearing liabilities were $1.2 billion for the quarters ended December 31, 2015 and 2014. Tax-equivalent net interest income for the twelve months ended December 31, decreased $202.0 thousand to $60.1 million in 2015 from $60.3 million in 2014. The tax-equivalent yield on the loan portfolio decreased to 4.59% in 2015 compared to 4.87% in 2014. Loans, net averaged $1.3 billion in 2015 and $1.2 billion in 2014. For the twelve months ended December 31, the tax-equivalent yield on investments was 2.71% in 2015 compared to 2.67% in 2014. Average investments totaled $311.2 million in 2015 and $338.5 million in 2014. Average interest-bearing liabilities increased slightly for the twelve months ended December 31, 2015, compared to the corresponding period last year. The cost of funds declined to 0.51% in 2015 from 0.57% in 2014.

For the quarter ended December 31, the provision for loan losses was $1.3 million in 2015 and $800.0 thousand in 2014. The provision for loan losses totaled $3.7 million for the twelve months ended December 31, 2015, compared to $3.5 million for the same period last year. The increase in the provision for loan losses in 2015 was a result of loan growth and an increase in the level of nonperforming loans.

For the three months ended December 31, noninterest income totaled $3.8 million in 2015 and $3.5 million in 2014. For the twelve months ended December 31, noninterest income totaled $15.7 million in 2015, an increase from $15.3 million in 2014. Net gains on sale of investment securities were $1.2 million in 2015 compared to $861.0 thousand in 2014. Increases in revenues from merchant services income, wealth management services and mortgage banking activities more than offset a decrease in service charges, fees and commissions, income from fiduciary activities and life insurance investment income.

For the fourth quarter, noninterest expense amounted to $12.5 million in 2015 and $11.3 million in 2014. The fourth quarter of 2015 included a $678.0 thousand charge for the disposal of a nonrecoverable asset. Noninterest expense increased $0.9 million or 1.8% to $46.8 million for the twelve months ended December 31, 2015, from $45.9 million for the twelve months ended December 31, 2014. Increases in salaries and employee benefits, net occupancy and equipment, merchant services expense and other expenses were partially offset by decreases in amortization of intangible assets and acquisition related expenses. The market expansion into Lehigh Valley and King of Prussia along with the buildout of our wealth management platform led to the increases in salaries and employee benefit and occupancy expenses.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $1.8 billion, $1.3 billion and $1.5 billion, respectively, at December 31, 2015. Loans, net grew $70.3 million or 22.0% on an annualized basis in the fourth quarter of 2015. Loans, net increased $131.0 million or 10.8% from December 31, 2014 to 2015. Deposits grew $11.2 million or 3.1% on an annualized basis in the fourth quarter of 2015. Total deposits increased $30.3 million or 2.1% in 2015 when compared to year-end 2014. Noninterest-bearing deposits increased $7.5 million or 2.4% while interest-bearing deposits increased $22.8 million or 2.0% in 2015. Total investments were $297.0 million at December 31, 2015, including $284.9 million securities classified as available-for-sale and $12.1 million classified as held-to-maturity.

Stockholders' equity equaled $248.8 million or $33.57 per share at December 31, 2015, and $246.8 million or $32.69 per share at December 31, 2014. Tangible stockholders' equity improved to $24.29 per share at December 31, 2015, from $23.57 per share at year-end 2014. Dividends declared for the twelve months ended December 31, 2015 amounted to $1.24 per share representing a dividend payout ratio of 52.5%.

ASSET QUALITY REVIEW

Nonperforming assets were $12.5 million or 0.93% of loans, net and foreclosed assets at December 31, 2015, compared to $11.7 million or 0.92% at September 30, 2015, and $10.9 million or 0.90% at December 31, 2014. The allowance for loan losses equaled $13.0 million or 0.97% of loans, net at December 31, 2015 compared to $10.3 million or 0.85% of loans, net, at December 31, 2014. Loans charged-off, net of recoveries, for the twelve months ended December 31, 2015, equaled $1.1 million or 0.08% of average loans, compared to $1.8 million or 0.15% of average loans for the twelve months ended December 31, 2014.

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 24 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 per share data)

Dec 31

Sept 30

June 30

Mar 31

Dec 31

2015

2015

2015

2015

2014

Key performance data:

Per share data:

Net income

$

0.52

$

0.58

$

0.59

$

0.67

$

0.58

Core net income (1)

$

0.50

$

0.57

$

0.59

$

0.60

$

0.58

Cash dividends declared

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

Book value

$

33.57

$

33.53

$

33.20

$

33.05

$

32.69

Tangible book value (1)

$

24.29

$

24.49

$

24.15

$

23.96

$

23.57

Market value:

High

$

41.96

$

41.60

$

43.76

$

49.26

$

52.52

Low

$

34.43

$

34.56

$

36.89

$

39.35

$

44.17

Closing

$

38.08

$

34.93

$

39.61

$

44.87

$

49.68

Market capitalization

$

282,196

$

262,642

$

298,767

$

338,695

$

375,002

Common shares outstanding

7,410,606

7,519,109

7,542,725

7,548,358

7,548,358

Selected ratios:

Return on average stockholders' equity

6.12

%

7.00

%

7.14

%

8.28

%

7.06

%

Core return on average stockholders' equity (1)

5.90

%

6.85

%

7.14

%

7.40

%

7.06

%

Return on average tangible stockholders' equity (1)

8.43

%

9.62

%

9.84

%

11.48

%

9.81

%

Core return on average tangible stockholders' equity (1)

8.14

%

9.41

%

9.84

%

10.25

%

9.81

%

Return on average assets

0.85

%

1.00

%

1.03

%

1.20

%

1.01

%

Core return on average assets (1)

0.82

%

0.98

%

1.03

%

1.07

%

1.01

%

Stockholders' equity to total assets

13.68

%

14.22

%

14.33

%

14.55

%

14.17

%

Efficiency ratio (2)

64.16

%

60.82

%

60.39

%

58.94

%

59.18

%

Nonperforming assets to loans, net, and foreclosed assets

0.93

%

0.92

%

0.86

%

0.91

%

0.90

%

Net charge-offs to average loans, net

0.11

%

0.09

%

0.04

%

0.09

%

0.21

%

Allowance for loan losses to loans, net

0.97

%

0.95

%

0.93

%

0.87

%

0.85

%

Earning assets yield (FTE) (3)

4.17

%

4.11

%

4.22

%

4.28

%

4.19

%

Cost of funds

0.51

%

0.50

%

0.50

%

0.54

%

0.54

%

Net interest spread (FTE) (3)

3.66

%

3.61

%

3.72

%

3.74

%

3.65

%

Net interest margin (FTE) (3)

3.79

%

3.74

%

3.84

%

3.88

%

3.79

%

(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 prevailing federal statutory tax rate of 35%.

 

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)

Dec 31

Dec 31

Year Ended

2015

2014

Interest income:

Interest and fees on loans:

Taxable

$

54,004

$

54,316

Tax-exempt

2,351

2,265

Interest and dividends on investment securities:

Taxable

3,207

3,946

Tax-exempt

3,385

3,271

Dividends

35

50

Interest on interest-bearing deposits in other banks

49

38

Interest on federal funds sold

10

70

Total interest income

63,041

63,956

Interest expense:

Interest on deposits

4,953

5,431

Interest on short-term borrowings

53

71

Interest on long-term debt

1,031

1,140

Total interest expense

6,037

6,642

Net interest income

57,004

57,314

Provision for loan losses

3,700

3,524

Net interest income after provision for loan losses

53,304

53,790

Noninterest income:

Service charges, fees, commissions

6,245

6,484

Merchant services income

3,855

3,549

Commissions and fees on fiduciary activities

1,946

2,179

Wealth management income

845

752

Mortgage banking income

872

648

Life insurance investment income

767

778

Net gains on sale of investment securities available-for-sale

1,189

861

Total noninterest income

15,719

15,251

Noninterest expense:

Salaries and employee benefits expense

21,533

20,652

Net occupancy and equipment expense

9,104

8,102

Merchant services expense

2,643

2,236

Amortization of intangible assets

1,182

1,334

Acquisition related expenses

1,725

Other expenses

12,317

11,884

Total noninterest expense

46,779

45,933

Income before income taxes

22,244

23,108

Provision for income tax expense

4,521

5,459

Net income

$

17,723

$

17,649

Other comprehensive income (loss):

Unrealized gains (losses) on investment securities available-for-sale

$

(510)

$

4,343

Reclassification adjustment for gains included in net income

(1,189)

(861)

Change in unfunded pension liability

(296)

(3,684)

Income tax expense (benefit) related to other comprehensive income

(699)

(71)

Other comprehensive income (loss), net of income taxes

(1,296)

(131)

Comprehensive income

$

16,427

$

17,518

Per share data:

Net income

$

2.36

$

2.34

Cash dividends declared

$

1.24

$

1.24

Average common shares outstanding

7,516,451

7,548,825

 

 

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

2015

2015

2015

2015

2014

Interest income:

Interest and fees on loans:

Taxable

$

13,932

$

13,341

$

13,391

$

13,340

$

13,281

Tax-exempt

637

585

570

559

658

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

Taxable

699

792

816

900

1,069

Tax-exempt

887

858

835

805

809

Dividends

11

9

6

9

18

Interest on interest-bearing deposits in other banks

10

13

15

11

9

Interest on federal funds sold

1

5

4

6

Total interest income

16,177

15,598

15,638

15,628

15,850

Interest expense:

Interest on deposits

1,264

1,229

1,192

1,268

1,306

Interest on short-term borrowings

30

11

4

8

4

Interest on long-term debt

275

245

252

259

276

Total interest expense

1,569

1,485

1,448

1,535

1,586

Net interest income

14,608

14,113

14,190

14,093

14,264

Provision for loan losses

1,300

900

750

750

800

Net interest income after provision for loan losses

13,308

13,213

13,440

13,343

13,464

Noninterest income:

Service charges, fees, commissions

1,560

1,531

1,542

1,612

1,669

Merchant services income

919

1,183

963

790

765

Commissions and fees on fiduciary activities

459

541

487

459

489

Wealth management income

218

224

198

205

183

Mortgage banking income

205

197

248

222

214

Life insurance investment income

198

192

188

189

213

Net gains on sale of investment securities available-for-sale

210

147

832

Total noninterest income

3,769

4,015

3,626

4,309

3,533

Noninterest expense:

Salaries and employee benefits expense

5,290

5,397

5,613

5,233

5,769

Net occupancy and equipment expense

2,241

2,246

2,149

2,468

2,022

Merchant services expense

637

823

650

533

514

Amortization of intangible assets

286

296

295

305

324

Acquisition related expenses

Other expenses

4,014

2,944

2,804

2,555

2,694

Total noninterest expense

12,468

11,706

11,511

11,094

11,323

Income before income taxes

4,609

5,522

5,555

6,558

5,674

Income tax expense

770

1,113

1,124

1,514

1,290

Net income

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Other comprehensive income (loss):

Unrealized gains (losses) on investment securities available-for-sale

$

(644)

$

826

$

(1,459)

$

767

$

1,532

Reclassification adjustment for gains included in net income

(210)

(147)

(832)

Change in pension liability

(296)

(3,684)

Income tax expense (benefit) related to other comprehensive income (loss)

(404)

237

(510)

(23)

(753)

Other comprehensive income (loss), net of income taxes

(746)

442

(949)

(42)

(1,399)

Comprehensive income

$

3,093

$

4,851

$

3,482

$

5,002

$

2,985

Per share data:

Net income

$

0.52

$

0.58

$

0.59

$

0.67

$

0.58

Cash dividends declared

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

Average common shares outstanding

7,435,440

7,536,824

7,546,198

7,548,358

7,548,358

 

 

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

2015

2015

2015

2015

2014

Net interest income:

Interest income

Loans, net:

Taxable

$

13,932

$

13,341

$

13,391

$

13,340

$

13,281

Tax-exempt

979

901

877

860

1,013

Total loans, net

14,911

14,242

14,268

14,200

14,294

Investments:

Taxable

710

801

822

909

1,087

Tax-exempt

1,366

1,320

1,285

1,238

1,244

Total investments

2,076

2,121

2,107

2,147

2,331

Interest on interest-bearing balances in other banks

10

13

15

11

9

Federal funds sold

1

5

4

6

Total interest income

16,998

16,376

16,395

16,362

16,640

Interest expense:

Deposits

1,264

1,229

1,192

1,268

1,306

Short-term borrowings

30

11

4

8

4

Long-term debt

275

245

252

259

276

Total interest expense

1,569

1,485

1,448

1,535

1,586

Net interest income

$

15,429

$

14,891

$

14,947

$

14,827

$

15,054

Loans, net:

Taxable

4.51

%

4.50

%

4.62

%

4.68

%

4.67

%

Tax-exempt

4.67

%

4.82

%

4.89

%

4.96

%

5.85

%

Total loans, net

4.52

%

4.52

%

4.63

%

4.70

%

4.74

%

Investments:

Taxable

1.60

%

1.54

%

1.60

%

1.68

%

1.63

%

Tax-exempt

4.34

%

4.46

%

5.05

%

5.36

%

5.20

%

Total investments

2.74

%

2.60

%

2.74

%

2.78

%

2.57

%

Interest-bearing balances with banks

0.83

%

0.85

%

0.57

%

1.64

%

0.34

%

Federal funds sold

0.54

%

0.35

%

0.19

%

0.31

%

Total earning assets

4.17

%

4.11

%

4.22

%

4.28

%

4.19

%

Interest expense:

Deposits

0.44

%

0.43

%

0.43

%

0.46

%

0.46

%

Short-term borrowings

0.42

%

0.39

%

0.38

%

0.31

%

0.14

%

Long-term debt

2.83

%

3.10

%

3.16

%

3.21

%

3.26

%

Total interest-bearing liabilities

0.51

%

0.50

%

0.50

%

0.54

%

0.54

%

Net interest spread

3.66

%

3.61

%

3.72

%

3.74

%

3.65

%

Net interest margin

3.79

%

3.74

%

3.84

%

3.88

%

3.79

%

 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands, except per share data)

Dec 31

Sept 30

June 30

Mar 31

Dec 31

At period end

2015

2015

2015

2015

2014

Assets:

Cash and due from banks

$

28,218

$

36,015

$

28,847

$

24,193

$

24,656

Interest-bearing balances in other banks

4,699

4,970

6,710

6,813

6,770

Federal funds sold

8,625

Investment securities:

Available-for-sale

284,935

299,832

318,790

280,300

339,586

Held-to-maturity

12,109

13,107

13,626

14,172

14,665

Total investments

297,044

312,939

332,416

294,472

354,251

Loans held for sale

3,439

2,879

3,101

3,486

Loans, net

1,340,865

1,270,545

1,231,541

1,237,168

1,209,894

Less: allowance for loan losses

12,975

12,043

11,428

10,803

10,338

Net loans

1,327,890

1,258,502

1,220,113

1,226,365

1,199,556

Premises and equipment, net

28,157

27,002

26,552

26,117

25,433

Accrued interest receivable

5,796

5,327

5,507

4,922

5,580

Goodwill

63,370

63,370

63,370

63,370

63,370

Other intangible assets, net

5,397

4,606

4,901

5,197

5,501

Other assets

58,487

56,600

56,460

50,786

53,066

Total assets

$

1,819,058

$

1,772,770

$

1,747,755

$

1,713,961

$

1,741,669

Liabilities:

Deposits:

Noninterest-bearing

$

320,978

$

303,741

$

296,823

$

305,037

$

313,498

Interest-bearing

1,134,832

1,140,909

1,127,944

1,111,241

1,112,060

Total deposits

1,455,810

1,444,650

1,424,767

1,416,278

1,425,558

Short-term borrowings

38,325

30,250

25,860

19,557

Long-term debt

60,354

31,000

31,663

32,318

33,140

Accrued interest payable

560

496

443

460

574

Other liabilities

15,241

14,286

14,618

15,447

16,061

Total liabilities

1,570,290

1,520,682

1,497,351

1,464,503

1,494,890

Stockholders' equity:

Common stock

14,821

15,038

15,086

15,097

15,097

Capital surplus

135,371

139,263

140,045

140,232

140,214

Retained earnings

100,701

99,165

97,093

95,000

92,297

Accumulated other comprehensive income (loss)

(2,125)

(1,378)

(1,820)

(871)

(829)

Total stockholders' equity

248,768

252,088

250,404

249,458

246,779

Total liabilities and stockholders' equity

$

1,819,058

$

1,772,770

$

1,747,755

$

1,713,961

$

1,741,669

 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands except per share data)

Dec 31

Sept 30

June 30

Mar 31

Dec 31

Average quarterly balances

2015

2015

2015

2015

2014

Assets:

Loans, net:

Taxable

$

1,226,295

$

1,176,533

$

1,163,445

$

1,155,435

$

1,127,719

Tax-exempt

83,176

74,203

71,978

70,334

68,731

Total loans, net

1,309,471

1,250,736

1,235,423

1,225,769

1,196,450

Investments:

Taxable

175,620

206,153

205,949

219,360

265,132

Tax-exempt

124,694

117,497

101,967

93,715

94,870

Total investments

300,314

323,650

307,916

313,075

360,002

Interest-bearing balances with banks

4,791

6,081

10,583

2,718

10,620

Federal funds sold

735

653

5,722

8,674

7,663

Total earning assets

1,615,311

1,581,120

1,559,644

1,550,236

1,574,735

Other assets

171,839

171,390

166,634

161,103

149,001

Total assets

$

1,787,150

$

1,752,510

$

1,726,278

$

1,711,339

$

1,723,736

Liabilities and stockholders' equity:

Deposits:

Interest-bearing

$

1,147,296

$

1,140,012

$

1,123,810

$

1,109,914

$

1,124,702

Noninterest-bearing

309,665

305,753

300,855

298,166

300,287

Total deposits

1,456,961

1,445,765

1,424,665

1,408,080

1,424,989

Short-term borrowings

28,016

11,130

4,232

10,373

11,046

Long-term debt

38,494

31,330

31,989

32,726

33,612

Other liabilities

14,722

14,368

16,438

13,240

7,693

Total liabilities

1,538,193

1,502,593

1,477,324

1,464,419

1,477,340

Stockholders' equity

248,957

249,917

248,954

246,920

246,396

Total liabilities and stockholders' equity

$

1,787,150

$

1,752,510

$

1,726,278

$

1,711,339

$

1,723,736

 

 

Peoples Financial Services Corp.

Asset Quality Data

(In thousands)

Dec 31

Sept 30

June 30

Mar 31

Dec 31

2015

2015

2015

2015

2014

At quarter end

Nonperforming assets:

Nonaccrual/restructured loans

$

10,744

$

9,646

$

9,143

$

9,736

$

8,699

Accruing loans past due 90 days or more

763

1,631

1,072

1,237

1,623

Foreclosed assets

957

458

334

324

561

Total nonperforming assets

$

12,464

$

11,735

$

10,549

$

11,297

$

10,883

Three months ended

Allowance for loan losses:

Beginning balance

$

12,043

$

11,428

$

10,803

$

10,338

$

10,171

Charge-offs

573

315

174

365

641

Recoveries

205

30

49

80

8

Provision for loan losses

1,300

900

750

750

800

Ending balance

$

12,975

$

12,043

$

11,428

$

10,803

$

10,338

 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Dec 31

Sept 30

June 30

Mar 31

Dec 31

Three months ended

2015

2015

2015

2015

2014

Core net income per share:

Net income GAAP

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Adjustments:

Less: Gains on sale of investment securities, net of tax

136

96

541

Add: Acquisition related expenses, net of tax

Net income Core

$

3,703

$

4,313

$

4,431

$

4,503

$

4,384

Average common shares outstanding

7,435,440

7,536,824

7,546,198

7,548,358

7,548,358

Core net income per share

$

0.50

$

0.57

$

0.59

$

0.60

$

0.58

Tangible book value:

Total stockholders' equity

$

248,768

$

252,088

$

250,404

$

249,458

$

246,779

Less: Goodwill

63,370

63,370

63,370

63,370

63,370

Less: Other intangible assets, net

5,397

4,606

4,901

5,197

5,501

Total tangible stockholders' equity

$

180,001

$

184,112

$

182,133

$

180,891

$

177,908

Common shares outstanding

7,410,606

7,519,109

7,542,725

7,548,358

7,548,358

Tangible book value per share

$

24.29

$

24.49

$

24.15

$

23.96

$

23.57

Core return on average stockholders' equity:

Net income GAAP

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Adjustments:

Less: Gains on sale of investment securities, net of tax

136

96

541

Add: Acquisition related expenses, net of tax

Net income Core

$

3,703

$

4,313

$

4,431

$

4,503

$

4,384

Average stockholders' equity

$

248,957

$

249,917

$

248,954

$

246,920

$

246,396

Core return on average stockholders' equity

5.90

%

6.85

%

7.14

%

7.40

%

7.06

%

Return on average tangible equity:

Net income GAAP

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Average stockholders' equity

$

248,957

$

249,917

$

248,954

$

246,920

$

246,396

Less: average intangibles

68,372

68,124

68,419

68,719

69,034

Average tangible stockholders' equity

$

180,585

$

181,793

$

180,535

$

178,201

$

177,362

Return on average tangible stockholders' equity

8.43

%

9.62

%

9.84

%

11.48

%

9.81

%

Core return on average tangible stockholders' equity:

Net income GAAP

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Adjustments:

Less: Gains on sale of investment securities, net of tax

136

96

541

Add: Acquisition related expenses, net of tax

Net income Core

$

3,703

$

4,313

$

4,431

$

4,503

$

4,384

Average stockholders' equity

$

248,957

$

249,917

$

248,954

$

246,920

$

246,396

Less: average intangibles

68,372

68,124

68,419

68,719

69,034

Average tangible stockholders' equity

$

180,585

$

181,793

$

180,535

$

178,201

$

177,362

Core return on average tangible stockholders' equity

8.14

%

9.41

%

9.84

%

10.25

%

9.81

%

Core return on average assets:

Net income GAAP

$

3,839

$

4,409

$

4,431

$

5,044

$

4,384

Adjustments:

Less: Gains on sale of investment securities, net of tax

136

96

541

Add: Acquisition related expenses, net of tax

Net income Core

$

3,703

$

4,313

$

4,431

$

4,503

$

4,384

Average assets

$

1,787,150

$

1,752,510

$

1,726,278

$

1,711,339

$

1,723,736

Core return on average assets

0.82

%

0.98

%

1.03

%

1.07

%

1.01

%

 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Dec 31

Dec 31

Year Ended

2015

2014

Core net income per share:

Net income GAAP

$

17,723

$

17,649

Adjustments:

Less: Gains on sale of investment securities, net of tax

773

560

Add: Acquisition related expenses, net of tax

1,121

Net income Core

$

16,950

$

18,210

Average common shares outstanding

7,516,451

7,548,825

Core net income per share

$

2.26

$

2.41

 

 

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SOURCE Peoples Financial Services Corp.



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