EXHIBIT 99.1
NEWS RELEASE
TO BUSINESS EDITOR:
PEOPLES FINANCIAL SERVICES CORP. Reports 33% increase in Third Quarter Earnings
Hallstead, PA, October 19 –Peoples Financial Services Corp. (OTCBB:PFIS) today reported third quarter 2011 earnings of $1,859 thousand or $0.60 per share. Year-to-date earnings totaled $6,017 thousand or $1.92 per share. For 2010, comparable earnings were $1,400 thousand or $0.45 per share for the third quarter and $4,442 thousand or $1.42 per share year-to-date.
For the three months and nine months ended September 30, return on average assets was 1.24% and 1.39%, respectively, in 2011, compared to 0.99% and 1.09% for the comparable 2010 periods. Return on average stockholders’ equity was 13.62% and 15.63%, respectively, for the third quarter and year-to-date 2011, compared to 11.72% and 13.14% for the same periods of 2010.
“Higher comparable recorded levels of net interest income continued to be the primary cause for the improvement in our third quarter and year-to-date earnings,” stated Alan W. Dakey, President and Chief Executive Officer. “Despite such improvements, we continually monitor the pressure on our net interest margin given the long period of low interest rates. As a result of the challenging interest rate environment, management will attempt to modify the balance sheet structure, increase noninterest income and maintain efficiency ratios,” continued Dakey. “At the end of the third quarter, we rolled out our new product, Card Cash™, a debit card rewards program, which will enhance relationships with our debit card users and offer an attractive alternative to our large competitors that are now charging debit card fees.” Dakey concluded.
HIGHLIGHTS
| · | Year-to-date and quarter-to date net income improved by 35.5% and 32.8% in 2011. |
| · | Total assets surpassed the $600 million level at September 30, 2011. |
| · | Loans grew at an annualized rate of 12.5% from year-end 2010. |
| · | Deposits grew 15.7% compared to the third quarter 2010. |
| · | Efficiency ratio improved to 54.7% in 2011 compared to 57.9% in 2010. |
INCOME STATEMENT REVIEW
For the three months ended September 30, tax-equivalent net interest income increased $702 thousand or 13.7% to $5,821 thousand in 2011 from $5,119 thousand in 2010. An improvement in tax-equivalent interest revenue of $519 thousand or 7.7% was the primary cause of the increase in net interest income for the third quarter of 2011. Also causing the favorable change was a decrease of $183 thousand or 11.2% in interest expense as a result of the sustained low interest rate environment. Comparing the third quarters of 2011 and 2010, the growth of average earning assets of $38.1 million outpacing the growth of average interest-bearing liabilities of $19.8 million helped to improve net interest income. Also assisting in the third quarter improvement was an increase in the tax-equivalent yield on earning assets of 2 basis points and a reduction in the cost of funds of 22 basis points. The tax-equivalent net interest margin for the third quarter improved 23 basis points to 4.07% in 2011 compared to 3.84% for the same period in 2010.
For the nine months ended September 30, tax-equivalent net interest income rose $2 million or 13.5% to $17.3 million in 2011 from $15.2 million in 2010. Favorably affecting net interest income was a 6.4% increase in tax-equivalent interest revenue. Supplementing the higher interest revenue was a 14.9% decrease in interest expense. Year-to-date tax-equivalent interest revenue rose $1.3 million, in spite of a 4 basis point decrease in the yield on earning assets. Loan yields decreased 16 basis points to 5.67%, while the yield on the investment portfolio decreased 10 basis points to 4.50%. Favorably impacting interest revenue was a $36.3 million increase in average earning assets. Average loan growth of $55.3 million was partially reduced by a decline of $19.0 million in average investments and federal funds sold. The decrease in interest expense was due largely to a 31 basis point increase in the cost of funds. For the nine months ended September 30, the tax-equivalent net interest margin widened 23 basis points to 4.20% in 2011 compared to 3.97% in 2010.
For the three months and nine months ended September 30, 2011, the provision for loan losses totaled $269 thousand and $1,494 thousand. For the respective periods of 2010, the provision for loan losses amounted to $445 thousand and $2,022 thousand. The decrease in the provision from 2011 was due to decreases in net charge-offs.
Noninterest revenue for the third quarter rose $107 thousand or 11.7% to $1,022 thousand in 2011 from $915 thousand in 2010. For the nine months ended September 30, 2011, noninterest revenue totaled $4,474 thousand, an increase of $1,136 thousand or 34.0% from $3,338 thousand for the comparable period of 2010. Revenue received from our Wealth Management Division increased $277 thousand or 115.4% as a result of acquiring an existing investment advisory business in the fourth quarter of 2010. In addition, year-to-date noninterest revenue includes a $1,673 gain realized on the sale of a commercial property held as other real estate.
For the third quarter, noninterest expense increased $254 thousand or 7.3% to $3,757 thousand in 2011 from $3,503 thousand in 2010. Payroll-related expenses rose $158 thousand or 10.6% as a result of additional staffing and normal merit increases. In addition, we experienced a $97 thousand or 15.1% increase in occupancy and equipment expense which resulted from expenses related to flooding issues in four of our branch offices. Other expenses were unchanged comparing the third quarters of 2011 and 2010. Comparing the nine months ended September 30, 2011 and 2010, noninterest expense increased $1,172 thousand or 11.7%.
BALANCE SHEET REVIEW
Total assets increased $42.6 million to $607.2 million at September 30, 2011, from $564.6 million at September 30, 2010. The balance sheet growth was driven by an increase in total deposits of $50.1 million or 11.5% to $486.2 million at the close of the third quarter of 2011, from $436.1 million one year ago. Due to the uncertainty in financial markets and perceived risk involved in investing in nonbank products, customers opted to invest excess funds into traditional bank products. In addition, an increase in the flow of funds from natural gas drilling impacted our deposit gathering. Loans, net of unearned income, rose $56.0 million to $427.2 million at September 30, 2011, from $371.2 million at September 30, 2010. Available-for-sale investment securities decreased $6.1 million to $129.0 million from $135.1 million comparing September 30, 2011 and 2010.
Stockholders' equity equaled $59.0 million or $18.86 per share at September 30, 2011, and $53.0 million or $16.86 per share at September 30, 2010. Our capital to assets was 9.72% at the close of the third quarter of 2011, an improvement compared to 9.38% one year earlier. All of our capital ratios significantly exceeded regulatory standards for well capitalized institutions at September 30, 2011. Dividends declared were $0.20 per share for the third quarter and $0.60 per share year-to-date in 2011. Accumulated other comprehensive income increased $4,779 thousand from year-end 2010, which resulted directly from an increase in the market value of available-for-sale investment securities.
Nonperforming assets equaled $8.8 million or 2.06% of loans, net of unearned income and foreclosed assets at September 30, 2011, compared to $10.4 million or 2.76% one year earlier. The improvement in asset quality resulted from a reduction in foreclosed assets. Loans charged-off, net of recoveries, decreased $956 thousand to $475 thousand for the nine months ended September 30, 2011, from $1,431 thousand for the same period last year. The provision for loan losses decreased $528 thousand comparing the nine months ended September 30, 2011 and 2010, corresponding with the decrease in net charge-offs. The allowance for loan losses equaled $5.1 million or 1.20% of loans, net of unearned income, at September 30, 2011, compared to $3.9 million or 1.06% one year ago.
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.
| |
| Peoples Financial Services Corp. | |
| Five Quarter Trend | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Key performance data: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | |
| Net income | | $ | 0.60 | | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | | | $ | 0.45 | |
| Cash dividends declared | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Book value | | $ | 18.86 | | | $ | 17.90 | | | $ | 16.70 | | | $ | 16.07 | | | $ | 16.86 | |
| Tangible book value | | $ | 18.59 | | | $ | 17.62 | | | $ | 16.39 | | | $ | 15.74 | | | $ | 16.74 | |
| Market value: | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 28.25 | | | $ | 27.50 | | | $ | 28.00 | | | $ | 28.00 | | | $ | 28.00 | |
| Low | | $ | 26.90 | | | $ | 25.50 | | | $ | 26.31 | | | $ | 26.60 | | | $ | 26.00 | |
| Closing | | $ | 27.55 | | | $ | 27.05 | | | $ | 26.31 | | | $ | 26.60 | | | $ | 28.00 | |
| Market capitalization | | $ | 86,205 | | | $ | 85,036 | | | $ | 82,700 | | | $ | 83,570 | | | $ | 87,950 | |
| Common shares outstanding | | | 3,129,056 | | | | 3,143,656 | | | | 3,143,281 | | | | 3,141,731 | | | | 3,141,056 | |
| | | | | | | | | | | | | | | | | | | | | |
| Selected ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average stockholders' equity | | | 13.62 | % | | | 18.56 | % | | | 14.84 | % | | | 15.77 | % | | | 11.72 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.24 | % | | | 1.63 | % | | | 1.30 | % | | | 1.45 | % | | | 0.99 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity to total assets | | | 9.72 | % | | | 9.59 | % | | | 9.20 | % | | | 9.04 | % | | | 9.38 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 58.09 | % | | | 50.98 | % | | | 55.82 | % | | | 53.03 | % | | | 62.33 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to loans, net, and foreclosed assets | | | 2.06 | % | | | 2.05 | % | | | 2.56 | % | | | 2.61 | % | | | 2.76 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans, net | | | 0.28 | % | | | 0.01 | % | | | 0.17 | % | | | 0.01 | % | | | 1.40 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses to loans, net | | | 1.20 | % | | | 1.21 | % | | | 1.07 | % | | | 1.05 | % | | | 1.06 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earning assets yield (FTE) | | | 5.08 | % | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % | | | 5.06 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Cost of funds | | | 1.27 | % | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % | | | 1.49 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest spread (FTE) | | | 3.81 | % | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % | | | 3.57 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 4.07 | % | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % | | | 3.84 | % |
Peoples Financial Services Corp. |
| Consolidated Statements of Income |
| (In thousands, except per share data) |
| | | | | | | |
| Nine Months Ended | | Sept 30 | | | Sept 30 | |
| | | 2011 | | | 2010 | |
| | | | | | | |
| Interest income: | | | | | | |
| Interest and fees on loans: | | | | | | |
| Taxable | | $ | 16,054 | | | $ | 14,456 | |
| Tax-exempt | | | 1,034 | | | | 823 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | |
| Taxable | | | 1,938 | | | | 2,227 | |
| Tax-exempt | | | 1,283 | | | | 1,507 | |
| Dividends | | | 26 | | | | 35 | |
| Interest on interest-bearing balances with banks | | | 8 | | | | 3 | |
| Interest on federal funds sold | | | 26 | | | | 20 | |
| Total interest income | | | 20,369 | | | | 19,071 | |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits | | | 3,344 | | | | 3,638 | |
| Interest on short-term borrowings | | | 238 | | | | 287 | |
| Interest on long-term debt | | | 728 | | | | 1,140 | |
| Total interest expense | | | 4,310 | | | | 5,065 | |
| Net interest income | | | 16,059 | | | | 14,006 | |
| Provision for loan losses | | | 1,494 | | | | 2,022 | |
| Net interest income after provision for loan losses | | | 14,565 | | | | 11,984 | |
| | | | | | | | | |
| Noninterest income: | | | | | | | | |
| Service charges, fees and commissions | | | 2,156 | | | | 2,752 | |
| Wealth management income | | | 517 | | | | 240 | |
| Mortgage banking income | | | 178 | | | | 308 | |
| Net gains on sale of investment securities available-for-sale | | | 37 | | | | 223 | |
| Other than temporary investment securities impairment | | | (87 | ) | | | (140 | ) |
| Net gains on sale of other real estate | | | 1,673 | | | | (45 | ) |
| Total noninterest income | | | 4,474 | | | | 3,338 | |
| | | | | | | | | |
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits expense | | | 4,722 | | | | 4,196 | |
| Net occupancy and equipment expense | | | 2,113 | | | | 1,877 | |
| Other expenses | | | 4,387 | | | | 3,977 | |
| Total noninterest expense | | | 11,222 | | | | 10,050 | |
| Income before income taxes | | | 7,817 | | | | 5,272 | |
| Provision for income tax expense | | | 1,800 | | | | 830 | |
| Net income | | $ | 6,017 | | | $ | 4,442 | |
| | | | | | | | | |
| Other comprehensive income: | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | | $ | 7,191 | | | $ | 8,115 | |
| Reclassification adjustment for gains included in net income | | | (37 | ) | | | (223 | ) |
| Reclassification adjustment for other than temporary impairment charges | | | 87 | | | | 140 | |
| Income tax expense related to other comprehensive income | | | 2,462 | | | | 2,731 | |
| Other comprehensive income, net of income taxes | | | 4,779 | | | | 5,301 | |
| Comprehensive income | | $ | 10,796 | | | $ | 9,743 | |
| | | | | | | | | |
| Per share data: | | | | | | | | |
| Net income | | $ | 1.92 | | | $ | 1.42 | |
| Cash dividends declared | | $ | 0.60 | | | $ | 0.59 | |
| Average common shares outstanding | | | 3,141,085 | | | | 3,138,989 | |
| Peoples Financial Services Corp. | |
| Consolidated Statements of Income | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | |
| Three months ended | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | |
| Interest and fees on loans: | | | | | | | | | | | | | | |
| Taxable | $ | 5,505 | | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | | | $ | 4,787 | |
| Tax-exempt | | 331 | | | | 346 | | | | 357 | | | | 293 | | | | 279 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | | | | | | | | | | | | |
| Taxable | | 639 | | | | 633 | | | | 666 | | | | 716 | | | | 731 | |
| Tax-exempt | | 397 | | | | 411 | | | | 475 | | | | 520 | | | | 525 | |
| Dividends | | 9 | | | | 8 | | | | 9 | | | | 9 | | | | 9 | |
| Interest on interest-bearing balances with banks | | 3 | | | | 3 | | | | 2 | | | | 1 | | | | 1 | |
| Interest on federal funds sold | | 13 | | | | 11 | | | | 2 | | | | 6 | | | | 8 | |
| Total interest income | | 6,897 | | | | 6,825 | | | | 6,647 | | | | 6,506 | | | | 6,340 | |
| | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 1,168 | | | | 1,132 | | | | 1,044 | | | | 1,058 | | | | 1,165 | |
| Interest on short-term borrowings | | 76 | | | | 76 | | | | 86 | | | | 102 | | | | 115 | |
| Interest on long-term debt | | 208 | | | | 263 | | | | 257 | | | | 273 | | | | 355 | |
| Total interest expense | | 1,452 | | | | 1,471 | | | | 1,387 | | | | 1,433 | | | | 1,635 | |
| Net interest income | | 5,445 | | | | 5,354 | | | | 5,260 | | | | 5,073 | | | | 4,705 | |
| Provision for loan losses | | 269 | | | | 804 | | | | 421 | | | | 180 | | | | 445 | |
| Net interest income after provision for loan losses | | 5,176 | | | | 4,550 | | | | 4,839 | | | | 4,893 | | | | 4,260 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | |
| Service charges, fees and commissions | | 736 | | | | 711 | | | | 709 | | | | 690 | | | | 782 | |
| Wealth management income | | 142 | | | | 236 | | | | 139 | | | | 65 | | | | 81 | |
| Mortgage banking income | | 32 | | | | 98 | | | | 48 | | | | 109 | | | | 168 | |
| Net gains on sale of investment securities available-for-sale | | 25 | | | | 2 | | | | 10 | | | | 123 | | | | 22 | |
| Other than temporary investment securities impairment | | (3 | ) | | | | | | | (84 | ) | | | (24 | ) | | | (140 | ) |
| Net gains on sale of other real estate | | 90 | | | | 1,583 | | | | | | | | (11 | ) | | | 2 | |
| Total noninterest income | | 1,022 | | | | 2,630 | | | | 822 | | | | 952 | | | | 915 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits expense | | 1,648 | | | | 1,628 | | | | 1,446 | | | | 1,302 | | | | 1,490 | |
| Net occupancy and equipment expense | | 738 | | | | 699 | | | | 676 | | | | 624 | | | | 641 | |
| Other expenses | | 1,371 | | | | 1,743 | | | | 1,273 | | | | 1,269 | | | | 1,372 | |
| Total noninterest expense | | 3,757 | | | | 4,070 | | | | 3,395 | | | | 3,195 | | | | 3,503 | |
| Income before income taxes | | 2,441 | | | | 3,110 | | | | 2,266 | | | | 2,650 | | | | 1,672 | |
| Provision for income tax expense | | 582 | | | | 751 | | | | 467 | | | | 607 | | | | 272 | |
| Net income | $ | 1,859 | | | $ | 2,359 | | | $ | 1,799 | | | $ | 2,043 | | | $ | 1,400 | |
| | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income: | | | | | | | | | | | | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | $ | 2,908 | | | $ | 3,183 | | | $ | 1,100 | | | $ | (5,775 | ) | | $ | 4,525 | |
| Reclassification adjustment for gains included in net income | | (25 | ) | | | (2 | ) | | | (10 | ) | | | (123 | ) | | | (22 | ) |
| Reclassification adjustment for other than temporary impairment charges | | 3 | | | | | | | | 84 | | | | 24 | | | | 140 | |
| Income tax expense related to other comprehensive income | | 981 | | | | 1,082 | | | | 399 | | | | (1,997 | ) | | | 1,579 | |
| Other comprehensive income, net of income taxes | | 1,905 | | | | 2,099 | | | | 775 | | | | (3,877 | ) | | | 3,064 | |
| Comprehensive income | $ | 3,764 | | | $ | 4,458 | | | $ | 2,574 | | | $ | (1,834 | ) | | $ | 4,464 | |
| | | | | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | | | | |
| Net income | $ | 0.60 | | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | | | $ | 0.45 | |
| Cash dividends declared | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Average common shares outstanding | | 3,134,591 | | | | 3,146,611 | | | | 3,142,137 | | | | 3,141,438 | | | | 3,141,056 | |
| Peoples Financial Services Corp. | |
| Details of Net Interest and Net Interest Margin | |
| (In thousands, fully taxable equivalent basis) | |
| | | | | | | | | | | | | | | | |
| Three months ended | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Net interest income: | | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 5,505 | | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | | | $ | 4,787 | |
| Tax-exempt | | | 502 | | | | 524 | | | | 541 | | | | 444 | | | | 423 | |
| Total loans, net | | | 6,007 | | | | 5,937 | | | | 5,677 | | | | 5,405 | | | | 5,210 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 648 | | | | 641 | | | | 675 | | | | 725 | | | | 740 | |
| Tax-exempt | | | 602 | | | | 623 | | | | 720 | | | | 788 | | | | 795 | |
| Total investments | | | 1,250 | | | | 1,264 | | | | 1,395 | | | | 1,513 | | | | 1,535 | |
| Interest-bearing balances with banks | | | 3 | | | | 3 | | | | 2 | | | | 1 | | | | 1 | |
| Federal funds sold | | | 13 | | | | 11 | | | | 2 | | | | 6 | | | | 8 | |
| Total interest income | | | 7,273 | | | | 7,215 | | | | 7,076 | | | | 6,925 | | | | 6,754 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
Deposits | | | 1,168 | | | | 1,132 | | | | 1,044 | | | | 1,058 | | | | 1,165 | |
| Short-term borrowings | | | 76 | | | | 76 | | | | 86 | | | | 102 | | | | 115 | |
| Long-term debt | | | 208 | | | | 263 | | | | 257 | | | | 273 | | | | 355 | |
| Total interest expense | | | 1,452 | | | | 1,471 | | | | 1,387 | | | | 1,433 | | | | 1,635 | |
| Net interest income | | $ | 5,821 | | | $ | 5,744 | | | $ | 5,689 | | | $ | 5,492 | | | $ | 5,119 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 5.59 | % | | | 5.71 | % | | | 5.70 | % | | | 5.64 | % | | | 5.52 | % |
| Tax-exempt | | | 5.74 | % | | | 5.73 | % | | | 5.77 | % | | | 6.35 | % | | | 6.32 | % |
| Total loans, net | | | 5.61 | % | | | 5.71 | % | | | 5.70 | % | | | 5.70 | % | | | 5.58 | % |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 3.20 | % | | | 3.75 | % | | | 3.87 | % | | | 3.43 | % | | | 3.62 | % |
| Tax-exempt | | | 5.96 | % | | | 6.03 | % | | | 6.15 | % | | | 6.04 | % | | | 6.06 | % |
| Total investments | | | 4.12 | % | | | 4.61 | % | | | 4.78 | % | | | 4.42 | % | | | 4.57 | % |
| Interest-bearing balances with banks | | | 0.86 | % | | | 0.88 | % | | | 1.14 | % | | | 1.25 | % | | | 1.42 | % |
| Federal funds sold | | | 0.25 | % | | | 0.22 | % | | | 0.13 | % | | �� | 0.13 | % | | | 0.12 | % |
| Total earning assets | | | 5.08 | % | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % | | | 5.06 | % |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
Deposits | | | 1.17 | % | | | 1.17 | % | | | 1.15 | % | | | 1.16 | % | | | 1.28 | % |
| Short-term borrowings | | | 0.81 | % | | | 0.89 | % | | | 0.91 | % | | | 0.98 | % | | | 1.17 | % |
| Long-term debt | | | 3.79 | % | | | 3.92 | % | | | 3.83 | % | | | 3.93 | % | | | 4.03 | % |
| Total interest-bearing liabilities | | | 1.27 | % | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % | | | 1.49 | % |
| Net interest spread | | | 3.81 | % | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % | | | 3.57 | % |
| Net interest margin | | | 4.07 | % | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % | | | 3.84 | % |
| Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Sept 30 | | | June 30 | | | March 31 | | | Dec. 31, | | | Sept 30 | |
| At period end | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
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| Assets: | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 9,787 | | | $ | 12,736 | | | $ | 9,661 | | | $ | 6,731 | | | $ | 10,459 | |
| Interest-bearing balances with banks | | | 1,007 | | | | 1,007 | | | | 1,110 | | | | 107 | | | | 70 | |
| Federal funds sold | | | 17,174 | | | | 9,357 | | | | 15,791 | �� | | | 11,003 | | | | 20,678 | |
| Investment securities available-for-sale | | | 128,956 | | | | 114,096 | | | | 107,091 | | | | 121,772 | | | | 135,052 | |
| Loans held for sale | | | 1,206 | | | | 92 | | | | 517 | | | | 30 | | | | 423 | |
| Loans, net of unearned income | | | 427,249 | | | | 426,655 | | | | 407,842 | | | | 390,772 | | | | 371,244 | |
| Less: allowance for loan losses | | | 5,119 | | | | 5,153 | | | | 4,356 | | | | 4,100 | | | | 3,928 | |
| Net loans | | | 422,130 | | | | 421,502 | | | | 403,486 | | | | 386,672 | | | | 367,316 | |
| Premises and equipment, net | | | 8,039 | | | | 8,170 | | | | 8,361 | | | | 8,238 | | | | 8,215 | |
| Accrued interest receivable | | | 3,240 | | | | 3,272 | | | | 3,020 | | | | 3,003 | | | | 3,062 | |
| Other assets | | | 15,616 | | | | 16,348 | | | | 21,291 | | | | 21,031 | | | | 19,288 | |
| Total assets | | $ | 607,155 | | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | | | $ | 564,563 | |
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| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 84,572 | | | $ | 78,216 | | | $ | 76,958 | | | $ | 73,663 | | | $ | 73,805 | |
| Interest-bearing | | | 401,588 | | | | 392,353 | | | | 376,614 | | | | 365,071 | | | | 362,321 | |
| Total deposits | | | 486,160 | | | | 470,569 | | | | 453,572 | | | | 438,734 | | | | 436,126 | |
| Short-term borrowings | | | 38,892 | | | | 36,352 | | | | 35,293 | | | | 38,724 | | | | 42,014 | |
| Long-term debt | | | 21,620 | | | | 21,862 | | | | 27,100 | | | | 27,336 | | | | 30,569 | |
| Accrued interest payable | | | 282 | | | | 307 | | | | 398 | | | | 311 | | | | 373 | |
| Other liabilities | | | 1,178 | | | | 1,220 | | | | 1,471 | | | | 2,966 | | | | 2,516 | |
| Total liabilities | | | 548,132 | | | | 530,310 | | | | 517,834 | | | | 508,071 | | | | 511,598 | |
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| Stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Common stock, par value $2.00 authorized | | | | | | | | | | | | | | | | | | | | |
| 12,500,000, shares issued 3,341,251; | | | 6,642 | | | | 6,672 | | | | 6,683 | | | | 6,683 | | | | 6,683 | |
| Capital surplus | | | 3,141 | | | | 3,122 | | | | 3,122 | | | | 3,118 | | | | 3,116 | |
| Retained earnings | | | 50,173 | | | | 48,938 | | | | 47,219 | | | | 46,048 | | | | 44,634 | |
| Accumulated other comprehensive income (loss) | | | 3,945 | | | | 2,040 | | | | (59 | ) | | | (834 | ) | | | 3,043 | |
| Less: Treasury stock, at cost, shares held 212,195;197,595; | | | 4,878 | | | | 4,502 | | | | 4,471 | | | | 4,499 | | | | 4,511 | |
| 197,970;199,520; 200,195 | | | | | | | | | | | | | | | | | | | | |
| Total stockholders' equity | | | 59,023 | | | | 56,270 | | | | 52,494 | | | | 50,516 | | | | 52,965 | |
| Total liabilities and stockholders' equity | | $ | 607,155 | | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | | | $ | 564,563 | |
Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| Average quarterly balances | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
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| Assets: | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 390,478 | | | $ | 380,528 | | | $ | 365,573 | | | $ | 348,786 | | | $ | 343,908 | |
| Tax-exempt | | | 34,711 | | | | 36,685 | | | | 38,008 | | | | 27,739 | | | | 26,554 | |
| Total loans, net | | | 425,189 | | | | 417,213 | | | | 403,581 | | | | 376,525 | | | | 370,462 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 80,221 | | | | 68,614 | | | | 70,781 | | | | 83,974 | | | | 81,176 | |
| Tax-exempt | | | 40,105 | | | | 41,434 | | | | 47,488 | | | | 51,788 | | | | 52,060 | |
| Total investments | | | 120,326 | | | | 110,048 | | | | 118,269 | | | | 135,762 | | | | 133,236 | |
Interest-bearing balances with banks | | | 1,386 | | | | 1,364 | | | | 714 | | | | 317 | | | | 280 | |
Federal funds sold | | | 20,693 | | | | 20,504 | | | | 6,028 | | | | 18,624 | | | | 25,507 | |
| Total earning assets | | | 567,594 | | | | 549,129 | | | | 528,592 | | | | 531,228 | | | | 529,485 | |
| Other assets | | | 28,378 | | | | 32,970 | | | | 32,316 | | | | 29,478 | | | | 31,630 | |
| Total assets | | $ | 595,972 | | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | | | $ | 561,115 | |
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| Liabilities and stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 395,354 | | | $ | 387,655 | | | $ | 366,632 | | | $ | 360,808 | | | $ | 360,498 | |
| Noninterest-bearing | | | 83,458 | | | | 78,959 | | | | 74,742 | | | | 75,411 | | | | 74,807 | |
| Total deposits | | | 478,812 | | | | 466,614 | | | | 441,374 | | | | 436,219 | | | | 435,305 | |
| Short-term borrowings | | | 37,231 | | | | 34,373 | | | | 38,532 | | | | 41,245 | | | | 38,978 | |
| Long-term debt | | | 21,749 | | | | 26,935 | | | | 27,227 | | | | 27,559 | | | | 34,960 | |
| Other liabilities | | | 4,014 | | | | 3,192 | | | | 4,613 | | | | 4,282 | | | | 4,467 | |
| Total liabilities | | | 541,806 | | | | 531,114 | | | | 511,746 | | | | 509,305 | | | | 513,710 | |
| Stockholders' equity | | | 54,166 | | | | 50,985 | | | | 49,162 | | | | 51,401 | | | | 47,405 | |
| Total liabilities and stockholders' equity | | $ | 595,972 | | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | | | $ | 561,115 | |
| Peoples Financial Services Corp. | |
| Asset Quality Data | |
| (In thousands) | |
| | | | | | | | | | | | | | | | |
| | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| At quarter end | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
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| Nonperforming assets: | | | | | | | | | | | | | | | |
| Nonaccrual/restructured loans | | $ | 7,977 | | | $ | 8,322 | | | $ | 6,751 | | | $ | 6,513 | | | $ | 6,290 | |
| Accruing loans past due 90 days or more | | | 429 | | | | 414 | | | | 542 | | | | 392 | | | | 146 | |
| Foreclosed assets | | | 399 | | | | | | | | 3,246 | | | | 3,387 | | | | 3,925 | |
| Total nonperforming assets | | $ | 8,805 | | | $ | 8,736 | | | $ | 10,539 | | | $ | 10,292 | | | $ | 10,361 | |
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| Three months ended | | | | | | | | | | | | | | | | | | | | |
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| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 5,153 | | | $ | 4,356 | | | $ | 4,100 | | | $ | 3,928 | | | $ | 4,791 | |
| Charge-offs | | | 317 | | | | 23 | | | | 176 | | | | 20 | | | | 1,312 | |
| Recoveries | | | 14 | | | | 16 | | | | 11 | | | | 12 | | | | 4 | |
| Provision for loan losses | | | 269 | | | | 804 | | | | 421 | | | | 180 | | | | 445 | |
| Ending balance | | $ | 5,119 | | | $ | 5,153 | | | $ | 4,356 | | | $ | 4,100 | | | $ | 3,928 | |
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| SOURCE Peoples Financial Services Corp. | | | | | | | | | | | | | | | | | | | | |
| /Contact: MEDIA/INVESTORS, Scott A. Seasock, 570.879.2175 or scotts@peoplesnatbank.com | | | | | |
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| Co: Peoples Financial Services Corp. | | | | | | | | | | | | | | | | | | | | |
| St: Pennsylvania | | | | | | | | | | | | | | | | | | | | |
| In: Fin | | | | | | | | | | | | | | | | | | | | |
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| 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. | |
