EXHIBIT 99
NEWS RELEASE
TO BUSINESS EDITOR:
PEOPLES FINANCIAL SERVICES CORP. Reports Increased Second Quarter Earnings
Hallstead, PA, July 19/-Peoples Financial Services Corp. (OTCBB:PFIS) today reported second quarter 2011 earnings of $2,359 thousand or $0.75 per share, an increase of $835 thousand or 54.8% compared to $1,524 thousand or $0.49 per share for the same quarter of 2010. Earnings for the six months ended June 30, improved $1,116 thousand or 36.7% to $4,158 thousand or $1.32 per share in 2011 compared to $3,042 thousand or $0.97 per share in 2010.
Return on average assets was 1.63% for the second quarter and 1.47% for the first half of 2011, compared to 1.12% and 1.14% for the respective periods of 2010. Return on average stockholders’ equity was 18.56% and 16.74%, respectively, for the second quarter and year-to-date 2011, compared to 13.59% and 13.91% for the same periods of 2010.
“I am extremely pleased with our Company’s financial success during the second quarter of 2011,” stated Alan W. Dakey, President and Chief Executive Officer. “Despite the challenging economy and interest rate environment, we were able to improve our net interest income from the previous quarter. We also experienced a significant increase in noninterest revenue from the first quarter. Solid growth in our loan portfolio favorably impacted net interest income, while a gain realized on the disposition of a commercial property held as other real estate strengthened noninterest income. In addition to these financial accomplishments, we have experience strong demand for our wealth management services in the second quarter. I believe the addition of these services aimed at coordinating and supporting all the financial and wealth management needs of our customers will strengthen stockholder value over the long term,” Dakey continued. “We look forward to a strong second half of the year as the favorable economic effects derived from the natural gas industry activities continues to impact the markets we serve,” concluded Dakey.
HIGHLIGHTS
| | • | | Earnings per share increased $0.35 or 36.1% comparing 2011 to 2010. |
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| | • | | Net gain on sale of other real estate totaled $1.6 million in second quarter 2011. |
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| | • | | Loans grew at an annual rate of 18.52% in 2011. |
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| | • | | Net interest margin increased 19 basis points from the comparable second quarter 2010. |
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| | • | | Efficiency ratio improved to 51.0% in second quarter 2011. |
INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the six months ended June 30, improved $1,345 thousand or 13.3% to $11,432 thousand in 2011 from $10,087 thousand in 2010. A $773 thousand increase in tax-equivalent interest income was supplemented by a decrease in interest expense of $572 thousand. Growth in average earning assets of $35.4 million was the primary factor contributing to the increase in interest revenue. Negatively impacting interest revenue was a 6 basis point decrease in the tax-equivalent yield on earning assets. Specifically, the tax-equivalent yield on the loan portfolio decreased 25 basis points to 5.71% for the first half of 2011 from 5.96% for the same period of 2010. In addition, loans, net of unearned income averaged $410.4 million or 15.7% higher comparing the six months ended June 30, 2011 and 2010. The tax-equivalent yield on the investment portfolio increased 8 basis points to 4.70% in 2011 from 4.62% in 2010. Average investments decreased $17.3 million or 13.1%. Partially offsetting the negative effects of the yield decrease and aiding the positive effects of earning asset growth was a decrease of 35 basis points in the cost of funds, which was the primary factor leading to the decreased interest expense. The tax-equivalent net interest margin for the six months ended June 30, increased 24 basis points to 4.28% in 2011, compared to 4.04% in 2010. The net interest margin for the second quarter of 2011 was 4.20%, 16 basis points lower than the previous quarter.
The provision for loan losses was $1,225 thousand for the six months ended June 30, 2011, and $1,577 thousand for the same six months of 2010. The provision for loan losses was $804 thousand for the second quarter of 2011 compared to $682 thousand for the same period last year. During the second quarter of 2011, we experienced an increase in the specific reserve required as part of our evaluation of one commercial loan relationship.
Noninterest income totaled $3,452 thousand for the six months ended June 30, 2011, an increase of $1,029 thousand or 42.5% from $2,423 thousand for the same six months of last year. Wealth management income increased 135.8% to $375 thousand in 2011 from $159 thousand in 2010. For the second quarter, noninterest income increased $1,319 thousand to $2,630 thousand in 2011, from $1,311 thousand in 2010. Included in noninterest income in the second quarter of 2011 was a $1,583 thousand gain on the sale of a commercial property held as other real estate owned.
Noninterest expense for the six months ended June 30, increased $918 thousand or 14.0% to $7,465 thousand in 2011 from $6,547 thousand in 2010. Employee-related costs rose $368 thousand or 13.6% as a result of increases in staffing, higher health insurance costs and normal merit increases. Additional equipment-related costs resulted in a $139 thousand or 11.3% increase in net occupancy and equipment expense. The $411 thousand or 15.8% increase in other expenses resulted from incurring a $509 thousand prepayment penalty on the extinguishment of a $5.0 million long-term debt with the Federal Home Loan Bank. For the second quarter, noninterest expense totaled $4,070 thousand in 2011, an increase of $560 thousand or 16.0% from $3,510 thousand in 2010.
BALANCE SHEET REVIEW
Total assets grew $28.0 million or at an annual rate of 10.1% to $586.6 million at June 30, 2011, from $558.6 million at December 31, 2010. Strong loan demand was the driving force behind the growth. Loans, net of unearned income, increased $35.9 million or at an annual rate of 18.5% to $426.7 million at the close of the second quarter from $390.8 million at the end of 2010. Available-for-sale investment securities declined $7.7 million to $114.1 million at June 30, 2011, from $121.8 million at December 31, 2010. Total deposits equaled $470.6 million at June 30, 2011, an increase of $31.9 million from $438.7 million at December 31, 2010. Noninterest-bearing deposits increased $4.6 million, while interest-bearing deposits grew $27.3 million.
Stockholders’ equity increased $5.8 million to $56.3 million or $17.90 per share at June 30, 2011, from $50.5 million or $16.07 per share at December 31, 2010. During the second quarter of 2011, we repurchased 5,500 shares for $150 thousand during the first half of 2011 under our on-going stock repurchase program. Stockholders’ equity was also impacted by net income of $4,158 thousand, net cash dividends declared of $1,268 thousand and other comprehensive income of $2,874 thousand related entirely to the change in net unrealized holding gains on available-for-sale investment securities. Dividends declared for the three months and six months ended June 30, 2011, equaled $0.20 per share and $0.40 per share compared to $0.20 per share and $0.39 per share for the respective periods of 2010.
We experienced an improvement in our asset quality over the first half of 2011. Nonperforming assets equaled $8.7 million or 2.05% of loans, net of unearned income and foreclosed assets at June 30, 2011, compared to $10.5 million or 2.56% at March 31, 2011, and $10.3 million or 2.61% at December 31, 2010. The decrease in nonperforming assets resulted primarily from the sale of the commercial property held as other real estate owned.
The allowance for loan losses equaled $5.2 million or 1.21% of loans, net of unearned income, at June 30, 2011, compared to $4.4 million or 1.07% at March 31, 2011, and $4.1 million or 1.05% at December 31, 2010. The allowance for loan losses covered 61.8% of nonperforming assets at the end of the second quarter of 2011, compared to 41.3% at the end of the first quarter and 39.8% at year-end 2010. Loans charged-off, net of recoveries, for the six months ended June 30, equaled $172 thousand or 0.04% of average loans outstanding in 2011 compared to $123 thousand or 0.03% of average loans outstanding in 2010.
Peoples Financial Services Corporation is the parent company of Peoples Neighborhood Bank, an independent community bank serving Lackawanna, Wyoming and Susquehanna Counties in Pennsylvania and Broome County in New York through eleven 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. In addition, customers can take advantage of PNB Online Banking services by accessing the Company's website at http://www.peoplesnatbank.com. Peoples Wealth Management is a member managed limited liability company for the purpose of providing investment advisory services to the general public. The Company's 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.
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| Peoples Financial Services Corp. | |
| Five Quarter Trend | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | | | June 30 | |
| | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Key performance data: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | |
| Net income | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | | | $ | 0.45 | | | $ | 0.49 | |
| Cash dividends declared | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Book value | | $ | 17.90 | | | $ | 16.70 | | | $ | 16.07 | | | $ | 16.86 | | | $ | 15.64 | |
| Tangible book value | | $ | 17.62 | | | $ | 16.39 | | | $ | 15.74 | | | $ | 16.74 | | | $ | 15.50 | |
| Market value: | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 27.50 | | | $ | 28.00 | | | $ | 28.00 | | | $ | 28.00 | | | $ | 29.00 | |
| Low | | $ | 25.50 | | | $ | 26.31 | | | $ | 26.60 | | | $ | 26.00 | | | $ | 21.65 | |
| Closing | | $ | 27.05 | | | $ | 26.31 | | | $ | 26.60 | | | $ | 28.00 | | | $ | 26.00 | |
| Market capitalization | | $ | 85,036 | | | $ | 82,700 | | | $ | 83,570 | | | $ | 87,950 | | | $ | 81,667 | |
| Common shares outstanding | | | 3,143,656 | | | | 3,143,281 | | | | 3,141,731 | | | | 3,141,056 | | | | 3,141,056 | |
| | | | | | | | | | | | | | | | | | | | | |
| Selected ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average stockholders' equity | | | 18.56 | % | | | 14.84 | % | | | 15.77 | % | | | 11.72 | % | | | 13.59 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.63 | % | | | 1.30 | % | | | 1.45 | % | | | 0.99 | % | | | 1.12 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity to total assets | | | 9.59 | % | | | 9.20 | % | | | 9.04 | % | | | 9.38 | % | | | 8.79 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 50.98 | % | | | 55.82 | % | | | 53.03 | % | | | 62.33 | % | | | 57.76 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to loans, net, and foreclosed assets | | | 2.05 | % | | | 2.56 | % | | | 2.61 | % | | | 2.76 | % | | | 1.85 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans, net | | | 0.01 | % | | | 0.17 | % | | | 0.01 | % | | | 1.40 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses to loans, net | | | 1.21 | % | | | 1.07 | % | | | 1.05 | % | | | 1.06 | % | | | 1.30 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earning assets yield (FTE) | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % | | | 5.06 | % | | | 5.34 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Cost of funds | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % | | | 1.49 | % | | | 1.61 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest spread (FTE) | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % | | | 3.57 | % | | | 3.73 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % | | | 3.84 | % | | | 4.01 | % |
Peoples Financial Services Corp. | |
| Consolidated Statements of Income | |
| (In thousands, except per share data) | |
| | | | | | | |
| Six Months Ended | | June 30 | | | June 30 | |
| | | 2011 | | | 2010 | |
| | | | | | | |
| Interest income: | | | | | | |
| Interest and fees on loans: | | | | | | |
| Taxable | | $ | 10,549 | | | $ | 9,669 | |
| Tax-exempt | | | 703 | | | | 544 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | |
| Taxable | | | 1,299 | | | | 1,496 | |
| Tax-exempt | | | 886 | | | | 982 | |
| Dividends | | | 17 | | | | 26 | |
| Interest on interest-bearing balances with banks | | | 5 | | | | 2 | |
| Interest on federal funds sold | | | 13 | | | | 12 | |
| Total interest income | | | 13,472 | | | | 12,731 | |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits | | | 2,176 | | | | 2,473 | |
| Interest on short-term borrowings | | | 162 | | | | 172 | |
| Interest on long-term debt | | | 520 | | | | 785 | |
| Total interest expense | | | 2,858 | | | | 3,430 | |
| Net interest income | | | 10,614 | | | | 9,301 | |
| Provision for loan losses | | | 1,225 | | | | 1,577 | |
| Net interest income after provision for loan losses | | | 9,389 | | | | 7,724 | |
| | | | | | | | | |
| Noninterest income: | | | | | | | | |
| Service charges, fees and commissions | | | 1,420 | | | | 1,923 | |
| Wealth management income | | | 375 | | | | 159 | |
| Mortgage banking income | | | 146 | | | | 140 | |
| Net gains on sale of investment securties available-for-sale | | | 12 | | | | 201 | |
| Other than temporary investment securities impaiment | | | (84 | ) | | | | |
| Net gains on sale of other real estste | | | 1,583 | | | | | |
| Total noninterest income | | | 3,452 | | | | 2,423 | |
| | | | | | | | | |
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits expense | | | 3,074 | | | | 2,706 | |
| Net occupancy and equipment expense | | | 1,375 | | | | 1,236 | |
| Other expenses | | | 3,016 | | | | 2,605 | |
| Total noninterest expense | | | 7,465 | | | | 6,547 | |
| Income before income taxes | | | 5,376 | | | | 3,600 | |
| Provision for income tax expense | | | 1,218 | | | | 558 | |
| Net income | | $ | 4,158 | | | $ | 3,042 | |
| | | | | | | | | |
| Other comprehensive income: | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | | $ | 4,283 | | | $ | 3,590 | |
| Reclassification adjustment for gains included in net income | | | (12 | ) | | | (201 | ) |
| Reclassification adjustment for other than temporary impairment charges | | | 84 | | | | | |
| Income tax expense related to other comprehensive income | | | 1,481 | | | | 1,152 | |
| Other comprehensive income, net of income taxes | | | 2,874 | | | | 2,237 | |
| Comprehensive income | | $ | 7,032 | | | $ | 5,279 | |
| | | | | | | | | |
| Per share data: | | | | | | | | |
| Net income | | $ | 1.32 | | | $ | 0.97 | |
| Cash dividends declared | | $ | 0.40 | | | $ | 0.39 | |
| Average common shares outstanding | | | 3,144,386 | | | | 3,137,939 | |
Peoples Financial Services Corp. | |
| Consolidated Statements of Income | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| Three months ended | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | | | June 30 | |
| | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | | |
| Interest and fees on loans: | | | | | | | | | | | | | | | |
| Taxable | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | | | $ | 4,787 | | | $ | 4,952 | |
| Tax-exempt | | | 346 | | | | 357 | | | | 293 | | | | 279 | | | | 274 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 633 | | | | 666 | | | | 716 | | | | 731 | | | | 745 | |
| Tax-exempt | | | 411 | | | | 475 | | | | 520 | | | | 525 | | | | 488 | |
| Dividends | | | 8 | | | | 9 | | | | 9 | | | | 9 | | | | 13 | |
| Interest on interest-bearing balances with banks | | | 3 | | | | 2 | | | | 1 | | | | 1 | | | | 1 | |
| Interest on federal funds sold | | | 11 | | | | 2 | | | | 6 | | | | 8 | | | | 8 | |
| Total interest income | | | 6,825 | | | | 6,647 | | | | 6,506 | | | | 6,340 | | | | 6,481 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 1,132 | | | | 1,044 | | | | 1,058 | | | | 1,165 | | | | 1,221 | |
| Interest on short-term borrowings | | | 76 | | | | 86 | | | | 102 | | | | 115 | | | | 101 | |
| Interest on long-term debt | | | 263 | | | | 257 | | | | 273 | | | | 355 | | | | 393 | |
| Total interest expense | | | 1,471 | | | | 1,387 | | | | 1,433 | | | | 1,635 | | | | 1,715 | |
| Net interest income | | | 5,354 | | | | 5,260 | | | | 5,073 | | | | 4,705 | | | | 4,766 | |
| Provision for loan losses | | | 804 | | | | 421 | | | | 180 | | | | 445 | | | | 682 | |
| Net interest income after provision for loan losses | | | 4,550 | | | | 4,839 | | | | 4,893 | | | | 4,260 | | | | 4,084 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Service charges, fees and commissions | | | 711 | | | | 709 | | | | 679 | | | | 784 | | | | 970 | |
| Wealth management income | | | 236 | | | | 139 | | | | 65 | | | | 81 | | | | 99 | |
| Mortgage banking income | | | 98 | | | | 48 | | | | 109 | | | | 168 | | | | 63 | |
| Net gains on sale of investment securties available-for-sale | | | 2 | | | | 10 | | | | 123 | | | | 22 | | | | 179 | |
| Other than temporary investment securities impaiment | | | 0 | | | | (84 | ) | | | (24 | ) | | | (140 | ) | | | | |
| Net gains on sale of other real estate | | | 1,583 | | | | | | | | | | | | | | | | | |
| Total noninterest income | | | 2,630 | | | | 822 | | | | 952 | | | | 915 | | | | 1,311 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits expense | | | 1,628 | | | | 1,446 | | | | 1,302 | | | | 1,490 | | | | 1,395 | |
| Net occupancy and equipment expense | | | 699 | | | | 676 | | | | 624 | | | | 641 | | | | 614 | |
| Other expenses | | | 1,743 | | | | 1,273 | | | | 1,269 | | | | 1,372 | | | | 1,501 | |
| Total noninterest expense | | | 4,070 | | | | 3,395 | | | | 3,195 | | | | 3,503 | | | | 3,510 | |
| Income before income taxes | | | 3,110 | | | | 2,266 | | | | 2,650 | | | | 1,672 | | | | 1,885 | |
| Provision for income tax expense | | | 751 | | | | 467 | | | | 607 | | | | 272 | | | | 361 | |
| Net income | | $ | 2,359 | | | $ | 1,799 | | | $ | 2,043 | | | $ | 1,400 | | | $ | 1,524 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income: | | | | | | | | | | | | | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | | $ | 3,183 | | | $ | 1,100 | | | $ | (5,775 | ) | | $ | 4,525 | | | $ | 2,418 | |
| Reclassification adjustment for gains included in net income | | | (2 | ) | | | (10 | ) | | | (123 | ) | | | (22 | ) | | | (179 | ) |
| Reclassification adjustment for other than temporary impairment charges | | | | | | | 84 | | | | 24 | | | | 140 | | | | | |
| Income tax expense related to other comprehensive income | | | 1,082 | | | | 399 | | | | (1,997 | ) | | | 1,579 | | | | 761 | |
| Other comprehensive income, net of income taxes | | | 2,099 | | | | 775 | | | | (3,877 | ) | | | 3,064 | | | | 1,478 | |
| Comprehensive income | | $ | 4,458 | | | $ | 2,574 | | | $ | (1,834 | ) | | $ | 4,464 | | | $ | 3,002 | |
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| Per share data: | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | | | $ | 0.45 | | | $ | 0.49 | |
| Cash dividends declared | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Average common shares outstanding | | | 3,146,611 | | | | 3,142,137 | | | | 3,141,438 | | | | 3,141,056 | | | | 3,139,631 | |
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| Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | Dec. 31, | | | Sept 30 | | | June 30 | |
| At period end | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 12,736 | | | $ | 9,661 | | | $ | 6,731 | | | $ | 10,459 | | | $ | 7,447 | |
| Interest-bearing balances with banks | | | 1,007 | | | | 1,110 | | | | 107 | | | | 70 | | | | 66 | |
| Federal funds sold | | | 9,357 | | | | 15,791 | | | | 11,003 | | | | 20,678 | | | | 33,615 | |
| Investment securities available-for-sale | | | 114,096 | | | | 107,091 | | | | 121,772 | | | | 135,052 | | | | 120,903 | |
| Loans held for sale | | | 92 | | | | 517 | | | | 30 | | | | 423 | | | | 483 | |
| Loans, net of unearned income | | | 426,655 | | | | 407,842 | | | | 390,772 | | | | 371,244 | | | | 369,954 | |
| Less: allowance for loan losses | | | 5,153 | | | | 4,356 | | | | 4,100 | | | | 3,928 | | | | 4,791 | |
| Net loans | | | 421,502 | | | | 403,486 | | | | 386,672 | | | | 367,316 | | | | 365,163 | |
| Premises and equipment, net | | | 8,170 | | | | 8,361 | | | | 8,238 | | | | 8,215 | | | | 8,116 | |
| Accrued interest receivable | | | 3,272 | | | | 3,020 | | | | 3,003 | | | | 3,062 | | | | 2,769 | |
| Other assets | | | 16,348 | | | | 21,291 | | | | 21,031 | | | | 19,288 | | | | 20,631 | |
| Total assets | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | | | $ | 564,563 | | | $ | 559,193 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 78,216 | | | $ | 76,958 | | | $ | 73,663 | | | $ | 73,805 | | | $ | 71,706 | |
| Interest-bearing | | | 392,353 | | | | 376,614 | | | | 365,071 | | | | 362,321 | | | | 362,843 | |
| Total deposits | | | 470,569 | | | | 453,572 | | | | 438,734 | | | | 436,126 | | | | 434,549 | |
| Short-term borrowings | | | 36,352 | | | | 35,293 | | | | 38,724 | | | | 42,014 | | | | 34,135 | |
| Long-term debt | | | 21,862 | | | | 27,100 | | | | 27,336 | | | | 30,569 | | | | 38,299 | |
| Accrued interest payable | | | 307 | | | | 398 | | | | 311 | | | | 373 | | | | 382 | |
| Other liabilities | | | 1,220 | | | | 1,471 | | | | 2,966 | | | | 2,516 | | | | 2,699 | |
| Total liabilities | | | 530,310 | | | | 517,834 | | | | 508,071 | | | | 511,598 | | | | 510,064 | |
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| | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Common stock, par value $2.00 authorized | | | | | | | | | | | | | | | | | | | | |
| 12,500,000, shares issued 3,341,251; | | | 6,672 | | | | 6,683 | | | | 6,683 | | | | 6,683 | | | | 6,683 | |
| Capital surplus | | | 3,122 | | | | 3,122 | | | | 3,118 | | | | 3,116 | | | | 3,116 | |
| Retained earnings | | | 48,938 | | | | 47,219 | | | | 46,048 | | | | 44,634 | | | | 43,862 | |
| Accumulated other comprehensive income (loss) | | | 2,040 | | | | (59 | ) | | | (834 | ) | | | 3,043 | | | | (21 | ) |
| Less: Treasury stock, at cost, shares held 197,595;197,970; | | | 4,502 | | | | 4,471 | | | | 4,499 | | | | 4,511 | | | | 4,511 | |
| 199,520; 200,195; 200,195 | | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity | | | 56,270 | | | | 52,494 | | | | 50,516 | | | | 52,965 | | | | 49,129 | |
| Total liabilities and stockholders' equity | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | | | $ | 564,563 | | | $ | 559,193 | |
| Peoples Financial Services Corp. | |
| Details of Net Interest and Net Interest Margin | |
| (In thousands, fully taxable equivalent basis) | |
| | | | | | | | | | | | | | | | |
| Three months ended | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | | | June 30 | |
| | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Net interest income: | | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | | | $ | 4,787 | | | $ | 4,952 | |
| Tax-exempt | | | 524 | | | | 541 | | | | 444 | | | | 423 | | | | 415 | |
| Total loans, net | | | 5,937 | | | | 5,677 | | | | 5,405 | | | | 5,210 | | | | 5,367 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 641 | | | | 675 | | | | 725 | | | | 740 | | | | 758 | |
| Tax-exempt | | | 623 | | | | 720 | | | | 788 | | | | 795 | | | | 740 | |
| Total investments | | | 1,264 | | | | 1,395 | | | | 1,513 | | | | 1,535 | | | | 1,498 | |
| Interest-bearing balances with banks | | | 3 | | | | 2 | | | | 1 | | | | 1 | | | | 1 | |
| Federal funds sold | | | 11 | | | | 2 | | | | 6 | | | | 8 | | | | 8 | |
| Total interest income | | | 7,215 | | | | 7,076 | | | | 6,925 | | | | 6,754 | | | | 6,874 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,132 | | | | 1,044 | | | | 1,058 | | | | 1,165 | | | | 1,221 | |
| Short-term borrowings | | | 76 | | | | 86 | | | | 102 | | | | 115 | | | | 101 | |
| Long-term debt | | | 263 | | | | 257 | | | | 273 | | | | 355 | | | | 393 | |
| Total interest expense | | | 1,471 | | | | 1,387 | | | | 1,433 | | | | 1,635 | | | | 1,715 | |
| Net interest income | | $ | 5,744 | | | $ | 5,689 | | | $ | 5,492 | | | $ | 5,119 | | | $ | 5,159 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 5.71 | % | | | 5.70 | % | | | 5.64 | % | | | 5.52 | % | | | 5.88 | % |
| Tax-exempt | | | 5.73 | % | | | 5.77 | % | | | 6.35 | % | | | 6.32 | % | | | 6.28 | % |
| Total loans, net | | | 5.71 | % | | | 5.70 | % | | | 5.70 | % | | | 5.58 | % | | | 5.91 | % |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 3.75 | % | | | 3.87 | % | | | 3.43 | % | | | 3.62 | % | | | 3.76 | % |
| Tax-exempt | | | 6.03 | % | | | 6.15 | % | | | 6.04 | % | | | 6.06 | % | | | 6.18 | % |
| Total investments | | | 4.61 | % | | | 4.78 | % | | | 4.42 | % | | | 4.57 | % | | | 4.66 | % |
| Interest-bearing balances with banks | | | 0.88 | % | | | 1.14 | % | | | 1.25 | % | | | 1.42 | % | | | 0.40 | % |
| Federal funds sold | | | 0.22 | % | | | 0.13 | % | | | 0.13 | % | | | 0.12 | % | | | 0.15 | % |
| Total earning assets | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % | | | 5.06 | % | | | 5.34 | % |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1.17 | % | | | 1.15 | % | | | 1.16 | % | | | 1.28 | % | | | 1.36 | % |
| Short-term borrowings | | | 0.89 | % | | | 0.91 | % | | | 0.98 | % | | | 1.17 | % | | | 1.41 | % |
| Long-term debt | | | 3.92 | % | | | 3.83 | % | | | 3.93 | % | | | 4.03 | % | | | 4.10 | % |
| Total interest-bearing liabilities | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % | | | 1.49 | % | | | 1.61 | % |
| Net interest spread | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % | | | 3.57 | % | | | 3.73 | % |
| Net interest margin | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % | | | 3.84 | % | | | 4.01 | % |
Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | | | June 30 | |
| Average quarterly balances | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 380,528 | | | $ | 365,573 | | | $ | 348,786 | | | $ | 343,908 | | | $ | 338,025 | |
| Tax-exempt | | | 36,685 | | | | 38,008 | | | | 27,739 | | | | 26,554 | | | | 26,501 | |
| Total loans, net | | | 417,213 | | | | 403,581 | | | | 376,525 | | | | 370,462 | | | | 364,526 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 68,614 | | | | 70,781 | | | | 83,974 | | | | 81,176 | | | | 80,834 | |
| Tax-exempt | | | 41,434 | | | | 47,488 | | | | 51,788 | | | | 52,060 | | | | 48,042 | |
| Total investments | | | 110,048 | | | | 118,269 | | | | 135,762 | | | | 133,236 | | | | 128,876 | |
| Interest-bearing balances with banks | | | 1,364 | | | | 714 | | | | 317 | | | | 280 | | | | 995 | |
| Federal funds sold | | | 20,504 | | | | 6,028 | | | | 18,624 | | | | 25,507 | | | | 21,495 | |
| Total earning assets | | | 549,129 | | | | 528,592 | | | | 531,228 | | | | 529,485 | | | | 515,892 | |
| Other assets | | | 32,970 | | | | 32,316 | | | | 29,478 | | | | 31,630 | | | | 31,653 | |
| Total assets | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | | | $ | 561,115 | | | $ | 547,545 | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities and stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 387,655 | | | $ | 366,632 | | | $ | 360,808 | | | $ | 360,498 | | | $ | 359,381 | |
| Noninterest-bearing | | | 78,959 | | | | 74,742 | | | | 75,411 | | | | 74,807 | | | | 71,951 | |
| Total deposits | | | 466,614 | | | | 441,374 | | | | 436,219 | | | | 435,305 | | | | 431,332 | |
| Short-term borrowings | | | 34,373 | | | | 38,532 | | | | 41,245 | | | | 38,978 | | | | 28,786 | |
| Long-term debt | | | 26,935 | | | | 27,227 | | | | 27,559 | | | | 34,960 | | | | 38,421 | |
| Other liabilities | | | 3,192 | | | | 4,613 | | | | 4,282 | | | | 4,467 | | | | 4,021 | |
| Total liabilities | | | 531,114 | | | | 511,746 | | | | 509,305 | | | | 513,710 | | | | 502,560 | |
| Stockholders' equity | | | 50,985 | | | | 49,162 | | | | 51,401 | | | | 47,405 | | | | 44,985 | |
| Total liabilities and stockholders' equity | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | | | $ | 561,115 | | | $ | 547,545 | |
Peoples Financial Services Corp. | |
| Asset Quality Data | |
| (In thousands) | |
| | | | | | | | | | | | | | | | |
| | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | | | June 30 | |
| At quarter end | | 2011 | | | 2011 | | | 2010 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | | | | | | | |
| Nonaccrual/restructured loans | | $ | 8,322 | | | $ | 6,751 | | | $ | 6,513 | | | $ | 6,290 | | | $ | 2,880 | |
| Accruing loans past due 90 days or more | | | 414 | | | | 542 | | | | 392 | | | | 146 | | | | 368 | |
| Foreclosed assets | | | | | | | 3,246 | | | | 3,387 | | | | 3,925 | | | | 3,650 | |
| Total nonperforming assets | | $ | 8,342 | | | $ | 10,539 | | | $ | 10,292 | | | $ | 10,361 | | | $ | 6,898 | |
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 4,356 | | | $ | 4,100 | | | $ | 3,928 | | | $ | 4,791 | | | $ | 4,110 | |
| Charge-offs | | | 23 | | | | 176 | | | | 20 | | | | 1,312 | | | | 29 | |
| Recoveries | | | 16 | | | | 11 | | | | 12 | | | | 4 | | | | 28 | |
| Provision for loan losses | | | 804 | | | | 421 | | | | 180 | | | | 445 | | | | 682 | |
| Ending balance | | $ | 5,153 | | | $ | 4,356 | | | $ | 4,100 | | | $ | 3,928 | | | $ | 4,791 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| SOURCE Peoples Financial Services Corp. | | | | | | | | | | | | | | | | | | | | |
| /Contact: MEDIA/INVESTORS, Scott A. Seasock, 570.879.2175 or scotts@peoplesnatbank.com | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Co: Peoples Financial Services Corp. | | | | | | | | | | | | | | | | | | | | |
| St: Pennsylvania | | | | | | | | | | | | | | | | | | | | |
| In: Fin | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Except for the historical information contained, herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties in the banking industry and overall economy. Such risks and uncertainties are detailed in the Company's Securities and Exchange Commission reports, including the Annual Report on Form 10-K and quarterly reports on Form 10-Q. | |
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