Peoples Financial Services Corp. Reports Second Quarter 2015 Earnings

Jul 21, 2015, 15:35 ET from Peoples Financial Services Corp.

SCRANTON, Pa., July 21, 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 and six months ended June 30, 2015.  Peoples reported net income of $4.4 million, or $0.59 per basic and diluted weighted average share for the second quarter of 2015, compared to $3.3 million, or $0.44 per share, for the comparable period of 2014.

Core net income for the three months ended June 30, 2015 was $4.4 million, a decrease of 1.6% from $4.5 million for the first quarter of 2015 and an increase of 14.1% from $3.9 million for the same period in 2014. The results for the three months ended June 30, 2014, include pre-tax acquisition related expenses of approximately $1.0 million. Core net income per share for the three months ended June 30, 2015 was $0.59, compared to $0.60 for the first quarter of 2015 and $0.51 for the same period in 2014.

Net income for the six months ended June 30, 2015, totaled $9.5 million or $1.26 per share compared to $8.0 million or $1.06 per share for the same period last year.

Core net income for the six months ended June 30, 2015 was $8.9 million, down 0.5% from $9.0 million for the same period in 2014. Core net income per share for the six months ended June 30, 2015 was $1.18, a decrease from $1.19 for the same period in 2014. The results for the six months ended June 30, 2015 include net gains on sale of investment securities of $832.0 thousand compared to $160.0 thousand in the first six months of 2014. Pre-tax acquisition related expenses recognized in the first half of 2014 approximated $1.6 million.

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 six months ended June 30, 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.

SECOND QUARTER NOTABLES

  • Core net income per share increased to $0.59 in the second quarter of 2015 versus $0.51 for the same period in 2014.
  • For the second quarter of 2015, return on average assets and core return on average assets were both 1.03% compared to 0.78% and 0.91%, respectively for the same period in 2014.
  • At the end of the second quarter of 2015, loans, net grew $21.6 million from December 31, 2014.
  • Nonperforming assets decreased to $10.5 million at the end of the second quarter of 2015 from $11.3 million at the end of the first quarter 2015 and $10.3 million at December 31, 2014.
  • Tangible book value per share improved $0.18 to $24.14 at the end of the second quarter of 2015 compared to $23.96 at March 31, 2015 and $23.57 at December 31, 2014.

INCOME STATEMENT REVIEW

The tax-equivalent net interest margins for the three and six months ended June 30, were 3.84% and 3.86% in 2015, compared to 3.73% and 3.90% in 2014, respectively. Loan accretion included in loan interest income for the six months ended June 30, 2015 related to loans acquired in the fourth quarter of 2013 was $347.0 thousand, resulting in an increase in the tax-equivalent net interest margin of 4 basis points. For the second quarter of 2015, loan accretion included in loan interest income related to loans acquired was $122.0 thousand. Loan accretion included in loan interest income in the first half of 2014 related to loans acquired in the fourth quarter of 2013 was $1.4 million, resulting in an increase in the tax-equivalent net interest margin of 18 basis points. For the second quarter of 2014, loan accretion included in loan interest income related to loans acquired was $526.0 thousand.

Tax-equivalent net interest income for the six months ended June 30, decreased $227 thousand to $29.8 million in 2015 from $30.0 million in 2014.  The decrease in tax equivalent net interest income was primarily due to a 4 basis point decrease in the tax-equivalent net interest margin caused by a $1.1 million decrease in loan accretion recognized in the first half of 2015 when compared to the same period in 2014. The tax-equivalent yield on the loan portfolio decreased to 4.66% for the six months ended June 30, 2015 compared to 4.92% for the comparable period in 2014. Loans, net averaged $1.2 billion in 2015 and 2014. For the six months ended June 30, the tax-equivalent yield on total investments decreased to 2.76% in 2015 from 2.79% in 2014. Average investments totaled $310.5 million in 2015 and $320.5 million in 2014. Average interest-bearing liabilities decreased slightly for the six months ended June 30, 2015, compared to the corresponding period last year. The cost of funds declined to 0.52% in the six months ended June 30, 2015 from 0.59% for the same period of 2014. Tax-equivalent net interest income for the three months ended June 30, increased to $14.9 million in 2015 from $14.5 million in 2014.

The provision for loan losses totaled $1.5 million for the six months ended June 30, 2015, compared to $2.1 million for the same period last year. The decrease 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 and a lower net charge-off ratio compared to the prior year period. For the quarter ended June 30, the provision for loan losses was $750.0 thousand in 2015 and $1.2 million in 2014.

For the six months ended June 30, noninterest income totaled $7.9 million in 2015, an increase from $7.3 million in 2014. Net gains on sale of investment securities were $832 thousand in 2015 compared to $160 thousand in 2014. Increases in wealth management services and mortgage banking activities more than offset a decrease in service charges, fees and commissions, revenues from merchant services, income from fiduciary activities, and life insurance investment income. For the three months ended June 30, noninterest income totaled $3.6 million in 2015 and $3.8 million in 2014.

Noninterest expense decreased $921.0 thousand or 3.9% to $22.6 million for the six months ended June 30, 2015, from $23.5 million for the six months ended June 30, 2014. The recognition of acquisition related expense of $1.6 million in 2014 was the primary cause for the decrease. There were no similar charges recognized in 2015. For the second quarter, noninterest expense amounted to $11.5 million in 2015 and $12.2 million in 2014.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $1.7 billion, $1.2 billion and $1.4 billion, respectively, at June 30, 2015. Loans, net increased $21.6 million or 1.8% comparing the end of the second quarter 2015 to year-end 2014. Total deposits were unchanged through six months of 2015. Noninterest-bearing deposits decreased $16.7 million or 10.7% on an annualized basis while interest-bearing deposits increased $15.9 million or 2.8% on an annualized basis in 2015. Total investments were $332.4 million at June 30, 2015, including $318.8 million securities classified as available-for-sale and $13.6 million classified as held-to-maturity.

Stockholders' equity equaled $250.4 million or $33.20 per share at June 30, 2015, and $246.8 million or $32.69 per share at December 31, 2014. Total tangible stockholders' equity improved to $182.1 million or $24.14 per share at June 30, 2015, compared to $177.9 million or $23.57 per share at year-end 2014. Dividends declared for the six months ended June 30, 2015 amounted to $0.62 per share representing a dividend payout ratio of 49.2%.

ASSET QUALITY REVIEW

Nonperforming assets were $10.5 million or 0.86% of loans, net and foreclosed assets at June 30, 2015, an improvement from $11.3 million or 0.91% at March 31, 2015, and $10.9 million or 0.90% at December 31, 2014. The allowance for loan losses equaled $11.4 million or 0.93% of loans, net at June 30, 2015 compared to $10.3 million or 0.85% of loans, net, at December 31, 2014. The allowance for loan losses as a percentage of loans, net increased from 0.82% at June 30, 2014 to 0.93% at June 30, 2015. Loans charged-off, net of recoveries, for the six months ended June 30, 2015, equaled $410.0 thousand or 0.07% of average loans, compared to $918.0 thousand or 0.15% of average loans for the six months ended June 30, 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 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.

 

Summary Data

Peoples Financial Services Corp.

Five Quarter Trend

(In thousands, except per share data)

June 30

Mar 31

Dec 31

Sept 30

June 30

2015

2015

2014

2014

2014

Key performance data:

Per share data:

Net income

$   0.59

$   0.67

$   0.58

$   0.70

$   0.44

Core net income (1)

$   0.59

$   0.60

$   0.58

$   0.65

$   0.51

Cash dividends declared

$   0.31

$   0.31

$   0.31

$   0.31

$   0.31

Book value

$ 33.20

$ 33.05

$ 32.69

$ 32.60

$ 32.35

Tangible book value (1)

$ 24.14

$ 23.96

$ 23.57

$ 23.43

$ 23.14

Market value:

High

$ 43.76

$ 49.26

$ 52.52

$ 52.52

$ 53.05

Low

$ 36.89

$ 39.35

$ 44.17

$ 45.99

$ 42.50

Closing

$ 39.61

$ 44.87

$ 49.68

$ 45.99

$ 51.39

Market capitalization

$ 298,767

$ 338,695

$ 375,002

$ 347,149

$ 387,910

Common shares outstanding

7,542,725

7,548,358

7,548,358

7,548,358

7,548,358

Selected ratios:

Return on average stockholders' equity

7.14%

8.28%

7.06%

8.49%

5.60%

Core return on average stockholders' equity (1)

7.14%

7.40%

7.06%

7.87%

6.52%

Return on average tangible stockholders' equity (1)

9.84%

11.48%

9.81%

11.85%

7.90%

Core return on average tangible stockholders' equity (1)

9.84%

10.25%

9.81%

10.98%

9.21%

Return on average assets

1.03%

1.20%

1.01%

1.20%

0.78%

Core return on average assets (1)

1.03%

1.07%

1.01%

1.11%

0.91%

Stockholders' equity to total assets

14.33%

14.55%

14.17%

14.27%

14.10%

Efficiency ratio (2)

62.95%

58.63%

61.80%

56.79%

67.91%

Nonperforming assets to loans, net, and foreclosed assets

0.86%

0.91%

0.90%

1.11%

1.35%

Net charge-offs to average loans, net

0.04%

0.09%

0.21%

0.04%

0.15%

Allowance for loan losses to loans, net

0.93%

0.87%

0.85%

0.86%

0.82%

Earning assets yield (FTE) (3)

4.22%

4.28%

4.19%

4.25%

4.17%

Cost of funds

0.50%

0.54%

0.54%

0.56%

0.59%

Net interest spread (FTE) (3)

3.72%

3.74%

3.65%

3.69%

3.58%

Net interest margin (FTE) (3)

3.84%

3.88%

3.79%

3.84%

3.73%

(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 of 35%.

 

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)

Six Months Ended

June 30

June 30

2015

2014

Interest income:

Interest and fees on loans:

Taxable

$ 26,731

$ 27,159

Tax-exempt

1,129

1,142

Interest and dividends on investment securities:

Taxable

1,716

1,870

Tax-exempt

1,640

1,646

Dividends

15

30

Interest on interest-bearing deposits in other banks

26

19

Interest on federal funds sold

9

48

Total interest income

31,266

31,914

Interest expense:

Interest on deposits

2,460

2,771

Interest on short-term borrowings

12

58

Interest on long-term debt

511

585

Total interest expense

2,983

3,414

Net interest income

28,283

28,500

Provision for loan losses

1,500

2,058

Net interest income after provision for loan losses

26,783

26,442

Noninterest income:

Service charges, fees, commissions

3,154

3,181

Merchant services income

1,753

1,782

Commissions and fees on fiduciary activities

946

1,115

Wealth management income

403

352

Mortgage banking income

470

292

Life insurance investment income

377

456

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

832

160

Total noninterest income

7,935

7,338

Noninterest expense:

Salaries and employee benefits expense

10,846

10,129

Net occupancy and equipment expense

4,617

4,060

Merchant services expense

1,183

1,060

Amortization of intangible assets

600

676

Acquisition related expenses

1,616

Other expenses

5,359

5,985

Total noninterest expense

22,605

23,526

Income before income taxes

12,113

10,254

Provision for income tax expense

2,638

2,225

Net income

$   9,475

$  8,029

Other comprehensive income (loss):

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

$    (692)

$  3,636

Reclassification adjustment for gains included in net income

(832)

(160)

Income tax expense (benefit) related to other comprehensive income

(533)

1,216

Other comprehensive income (loss), net of income taxes

(991)

2,260

Comprehensive income

$   8,484

$ 10,289

Per share data:

Net income

$ 1.26

$ 1.06

Cash dividends declared

$ 0.62

$ 0.62

Average common shares outstanding

7,547,272

7,549,300

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)

Three months ended

June 30

Mar 31

Dec 31

Sept 30

June 30

2015

2015

2014

2014

2014

Interest income:

Interest and fees on loans:

Taxable

$ 13,391

$ 13,340

$ 13,281

$ 13,876

$ 13,159

Tax-exempt

570

559

658

465

507

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

Taxable

816

900

1,069

1,007

942

Tax-exempt

835

805

809

816

817

Dividends

6

9

18

2

14

Interest on interest-bearing deposits  in other banks

15

11

9

10

9

Interest on federal funds sold

5

4

6

16

34

Total interest income

15,638

15,628

15,850

16,192

15,482

Interest expense:

Interest on deposits

1,192

1,268

1,306

1,354

1,414

Interest on short-term borrowings

4

8

4

9

24

Interest on long-term debt

252

259

276

279

289

Total interest expense

1,448

1,535

1,586

1,642

1,727

Net interest income

14,190

14,093

14,264

14,550

13,755

Provision for loan losses

750

750

800

666

1,201

Net interest income after provision for loan losses

13,440

13,343

13,464

13,884

12,554

Noninterest income:

Service charges, fees, commissions

1,542

1,612

1,669

1,634

1,557

Merchant services income

963

790

765

1,002

888

Commissions and fees on fiduciary activities

487

459

489

575

548

Wealth management income

198

205

183

217

165

Mortgage banking income

248

222

214

142

193

Life insurance investment income

188

189

213

109

267

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

832

701

160

Total noninterest income

3,626

4,309

3,533

4,380

3,778

Noninterest expense:

Salaries and employee benefits expense

5,613

5,233

5,769

4,754

4,961

Net occupancy and equipment expense

2,149

2,468

2,022

2,020

2,327

Merchant services expense

650

533

514

662

495

Amortization of intangible assets

295

305

324

334

333

Acquisition related expenses

109

1,008

Other expenses

2,804

2,555

2,694

3,205

3,115

Total noninterest expense

11,511

11,094

11,323

11,084

12,239

Income before income taxes

5,555

6,558

5,674

7,180

4,093

Income tax expense

1,124

1,514

1,290

1,944

762

Net income

$   4,431

$   5,044

$   4,384

$   5,236

$   3,331

Other comprehensive income (loss):

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

$ (1,459)

$      767

$    1,532

$    (825)

$   1,242

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)

(510)

(23)

(753)

(534)

378

Other comprehensive income (loss), net of income taxes

(949)

(42)

(1,399)

(992)

704

Comprehensive income

$   3,482

$   5,002

$   2,985

$   4,244

$   4,035

Per share data:

Net income

$ 0.59

$ 0.67

$ 0.58

$ 0.70

$ 0.44

Cash dividends declared

$ 0.31

$ 0.31

$ 0.31

$ 0.31

$ 0.31

Average common shares outstanding

7,546,198

7,548,358

7,548,358

7,548,358

7,548,358

 

Peoples Financial Services Corp.

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)

Three months ended

June 30

Mar 31

Dec 31

Sept 30

June 30

2015

2015

2014

2014

2014

Net interest income:

Interest income

Loans, net:

Taxable

$ 13,391

$ 13,340

$ 13,281

$ 13,876

$ 13,159

Tax-exempt

877

860

1,013

715

779

Total loans, net

14,268

14,200

14,294

14,591

13,938

Investments:

Taxable

822

909

1,087

1,009

956

Tax-exempt

1,285

1,238

1,244

1,256

1,258

Total investments

2,107

2,147

2,331

2,265

2,214

Interest on interest-bearing balances in other banks

15

11

9

10

9

Federal funds sold

5

4

6

16

34

Total interest income

16,395

16,362

16,640

16,882

16,195

Interest expense:

Deposits

1,192

1,268

1,306

1,354

1,414

Short-term borrowings

4

8

4

9

24

Long-term debt

252

259

276

279

289

Total interest expense

1,448

1,535

1,586

1,642

1,727

Net interest income

$ 14,947

$ 14,827

$ 15,054

$ 15,240

$ 14,468

Loans, net:

Taxable

4.62%

4.68%

4.67%

4.88%

4.69%

Tax-exempt

4.89%

4.96%

5.85%

5.05%

4.94%

Total loans, net

4.63%

4.70%

4.74%

4.89%

4.71%

Investments:

Taxable

1.60%

1.68%

1.63%

1.57%

1.72%

Tax-exempt

5.05%

5.36%

5.20%

5.10%

5.15%

Total investments

2.74%

2.78%

2.57%

2.55%

2.77%

Interest-bearing balances with banks

0.57%

1.64%

0.34%

0.68%

0.83%

Federal funds sold

0.35%

0.19%

0.31%

0.19%

0.31%

Total earning assets

4.22%

4.28%

4.19%

4.25%

4.17%

Interest expense:

Deposits

0.43%

0.46%

0.46%

0.48%

0.51%

Short-term borrowings

0.38%

0.31%

0.14%

0.42%

0.51%

Long-term debt

3.16%

3.21%

3.26%

3.21%

3.27%

Total interest-bearing liabilities

0.50%

0.54%

0.54%

0.56%

0.59%

Net interest spread

3.72%

3.74%

3.65%

3.69%

3.58%

Net interest margin

3.84%

3.88%

3.79%

3.84%

3.73%

 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands, except per share data)

June 30

Mar 31

Dec 31

Sept 30

June 30

At period end

2015

2015

2014

2014

2014

Assets:

Cash and due from banks

$     28,847

$     24,193

$     24,656

$     21,179

$     51,416

Interest-bearing balances in other banks

6,710

6,813

6,770

6,932

10,592

Federal funds sold

8,625

6,100

15,400

Investment securities:

Available-for-sale

318,790

280,300

339,586

350,825

312,323

Held-to-maturity

13,626

14,172

14,665

15,264

15,915

Total investments

332,416

294,472

354,251

366,089

328,238

Loans held for sale

2,879

3,101

3,486

2,961

2,757

Loans, net

1,231,541

1,237,168

1,209,894

1,179,942

1,179,847

Less: allowance for loan losses

11,428

10,803

10,338

10,171

9,622

Net loans

1,220,113

1,226,365

1,199,556

1,169,771

1,170,225

Premises and equipment, net

26,552

26,117

25,433

25,692

25,670

Accrued interest receivable

5,507

4,922

5,580

5,381

5,576

Goodwill

63,370

63,370

63,370

63,370

63,370

Other intangible assets, net

4,901

5,197

5,501

5,826

6,159

Other assets

56,460

50,786

53,066

51,477

51,703

Total assets

$1,747,755

$1,713,961

$1,741,669

$1,724,778

$1,731,106

Liabilities:

Deposits:

Noninterest-bearing

$    296,823

$    305,037

$   313,498

$   302,279

$   295,922

Interest-bearing

1,127,944

1,111,241

1,112,060

1,123,349

1,126,880

Total deposits

1,424,767

1,416,278

1,425,558

1,425,628

1,422,802

Short-term borrowings

25,860

19,557

6,514

14,088

Long-term debt

31,663

32,318

33,140

34,020

34,925

Accrued interest payable

443

460

574

597

580

Other liabilities

14,618

15,447

16,061

11,950

14,546

Total liabilities

1,497,351

1,464,503

1,494,890

1,478,709

1,486,941

Stockholders' equity:

Common stock

15,086

15,097

15,097

15,097

15,097

Capital surplus

140,045

140,232

140,214

140,150

140,150

Retained earnings

97,093

95,000

92,297

90,252

87,356

Accumulated other comprehensive income (loss)

(1,820)

(871)

(829)

570

1,562

Less: Treasury stock, at cost

Total stockholders' equity

250,404

249,458

246,779

246,069

244,165

Total liabilities and stockholders' equity

$1,747,755

$1,713,961

$1,741,669

$1,724,778

$1,731,106

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands except per share data)

June 30

Mar 31

Dec 31

Sept 30

June 30

Average quarterly balances

2015

2015

2014

2014

2014

Assets:

Loans, net:

Taxable

$1,163,445

$1,155,435

$1,127,719

$1,127,888

$1,124,273

Tax-exempt

71,978

70,334

68,731

56,214

63,295

Total loans, net

1,235,423

1,225,769

1,196,450

1,184,102

1,187,568

Investments:

Taxable

205,950

219,360

265,132

254,556

223,220

Tax-exempt

101,966

93,715

94,870

97,822

97,879

Total investments

307,916

313,075

360,002

352,378

321,099

Interest-bearing balances with banks

10,583

2,718

10,620

5,875

4,342

Federal funds sold

5,722

8,674

7,663

34,227

44,553

Total earning assets

1,559,644

1,550,236

1,574,735

1,576,582

1,557,562

Other assets

166,634

161,103

149,001

152,821

150,877

Total assets

$1,726,278

$1,711,339

$1,723,736

$1,729,403

$1,708,439

Liabilities and stockholders' equity:

Deposits:

Interest-bearing

$1,123,810

$1,109,914

$1,124,702

$1,126,915

$1,118,108

Noninterest-bearing

300,855

298,166

300,287

303,441

288,015

Total deposits

1,424,665

1,408,080

1,424,989

1,430,356

1,406,123

Short-term borrowings

4,232

10,373

11,046

8,511

18,759

Long-term debt

31,989

32,726

33,612

34,510

35,419

Other liabilities

16,438

13,240

7,693

11,330

9,381

Total liabilities

1,477,324

1,464,419

1,477,340

1,484,707

1,469,682

Stockholders' equity

248,954

246,920

246,396

244,696

238,757

Total liabilities and stockholders' equity

$1,726,278

$1,711,339

$1,723,736

$1,729,403

$1,708,439

 

 

Peoples Financial Services Corp.

Asset Quality Data

(In thousands)

June 30

Mar 31

Dec 31

Sept 30

June 30

At quarter end

2015

2015

2014

2014

2014

Nonperforming assets:

Nonaccrual/restructured loans

$   9,143

$   9,736

$   8,699

$ 11,324

$ 13,616

Accruing loans past due 90 days or more

1,072

1,237

1,623

955

1,693

Foreclosed assets

334

324

561

840

626

Total nonperforming assets

$ 10,549

$ 11,297

$ 10,883

$ 13,119

$ 15,935

Three months ended

Allowance for loan losses:

Beginning balance

$10,803

$ 10,338

$ 10,171

$   9,622

$   8,859

Charge-offs

174

365

641

177

790

Recoveries

49

80

8

60

352

Provision for loan losses

750

750

800

666

1,201

Ending balance

$ 11,428

$ 10,803

$ 10,338

$ 10,171

$   9,622

 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

June 30

Mar 31

Dec 31

Sept 30

June 30

2015

2015

2014

2014

2014

Three months ended

Core net income per share:

Net income GAAP

$4,431

$5,044

$4,384

$5,236

$3,331

Adjustments:

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

541

456

104

Add: Acquisition related expenses, net of tax

71

655

Net income Core

$4,431

$4,503

$4,384

$4,851

$3,882

Average common shares outstanding

7,546,198

7,548,358

7,548,358

7,548,358

7,548,358

Core net income per share

$0.59

$0.60

$0.58

$0.65

$0.51

Tangible book value:

Total stockholders' equity

$250,404

$249,458

$246,779

$246,069

$244,165

Less: Goodwill

63,370

63,370

63,370

63,370

63,370

Less: Other intangible assets, net

4,901

5,197

5,501

5,826

6,159

Total tangible stockholders' equity

$182,133

$180,891

$177,908

$176,873

$174,636

Common shares outstanding

7,546,198

7,548,358

7,548,358

7,548,358

7,548,358

Tangible book value per share

$24.14

$23.96

$23.57

$23.43

$23.14

Core return on average stockholders' equity:

Net income GAAP

$4,431

$5,044

$4,384

$5,236

$3,331

Adjustments:

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

541

456

104

Add: Acquisition related expenses, net of tax

71

655

Net income Core

$4,431

$4,503

$4,384

$4,851

$3,882

Average stockholders' equity

$248,954

$246,920

$246,396

$244,696

$238,757

Core return on average stockholders' equity

7.14%

7.40%

7.06%

7.87%

6.52%

Return on average tangible equity:

Net income GAAP

$4,431

$5,044

$4,384

$5,236

$3,331

Average stockholders' equity

$248,954

$246,920

$246,396

$244,696

$238,757

Less: average intangibles

68,419

68,719

69,034

69,363

69,696

Average tangible stockholders' equity

$180,535

$178,201

$177,362

$175,333

$169,061

Return on average tangible stockholders' equity

9.84%

11.48%

9.81%

11.85%

7.90%

Core return on average tangible stockholders' equity:

Net income GAAP

$4,431

$5,044

$4,384

$5,236

$3,331

Adjustments:

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

541

456

104

Add: Acquisition related expenses, net of tax

71

655

Net income Core

$4,431

$4,503

$4,384

$4,851

$3,882

Average stockholders' equity

$248,954

$246,920

$246,396

$244,696

$238,757

Less: average intangibles

68,419

68,719

69,034

69,363

69,696

Average tangible stockholders' equity

$180,535

$178,201

$177,362

$175,333

$169,061

Core return on average tangible stockholders' equity

9.84%

10.25%

9.81%

10.98%

9.21%

Core return on average assets:

Net income GAAP

$4,431

$5,044

$4,384

$5,236

$3,331

Adjustments:

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

541

456

104

Add: Acquisition related expenses, net of tax

71

655

Net income Core

$4,431

$4,503

$4,384

$4,851

$3,882

Average assets

$1,726,278

$1,711,339

$1,723,736

$1,729,403

$1,708,439

Core return on average assets

1.03%

1.07%

1.01%

1.11%

0.91%

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

June 30

June 30

2015

2014

Six months ended

Core net income per share:

Net income GAAP

$ 9,475

$ 8,029

Adjustments:

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

541

104

Add: Acquisition related expenses, net of tax

1,050

Net income Core

$ 8,934

$ 8,975

Average common shares outstanding

7,547,272

7,549,300

Core net income per share

$ 1.18

$ 1.19

 

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SOURCE Peoples Financial Services Corp.