EXHIBIT 99.1
NEWS RELEASE
TO BUSINESS EDITOR:
PEOPLES FINANCIAL SERVICES CORP. REPORTS 21% EARNINGS INCREASE
Hallstead, PA, January 20 – Peoples Financial Services Corp. (OTCBB:PFIS) today reported record 2011 earnings of $7.8 million or $2.49 per share, an increase of $1.3 million or 20.5% from $6.5 million or $2.07 per share for 2010. Earnings for the fourth quarter were $1.8 millions or $0.57 per share in 2011 and $2.0 million or $0.65 per share in 2010.
Return on average assets was 1.17% and 1.33% for the fourth quarter and year ended December 31, 2011, compared to 1.45% and 1.18% for the respective periods of 2010. Return on average equity was 12.54% for the fourth quarter and 14.80% for the year in 2011 compared to 15.77% and 13.87% for the same periods of 2010.
"I am extremely pleased with our Company's performance in 2011," stated Alan W. Dakey, President and Chief Executive Officer. "We achieved record earnings and exceeded our goals for profitability and asset growth. Despite a very challenging interest rate and competitive environment, our net interest margin increased which was the driving force behind the earnings improvement. The past year, characterized by historically low interest rates, proved extremely challenging for interest rate risk management. As a result, many banks experienced margin compression. We were able to effectively manage our rate-sensitive assets and liabilities through strong loan growth and prudent pricing practices which directly led to a 13.8% increase in net interest income and a 17 basis point improvement in the net interest margin. In addition, improvements in noninterest income and the retention of a top level efficiency ratio favorably impacted our bottom line," continued Dakey. "We look forward to continued financial strength in 2012 as the economy continues to improve," concluded Dakey.
HIGHLIGHTS
| · | Year-to-date earnings increased $0.42 per share in 2011. |
| · | Net interest margin widened 17 basis points over 2010. |
| · | Loans, net grew $54.3 million or 14% from year-end 2010. |
| · | Deposits increased $55.6 million or 13% in 2011. |
| · | Nonperforming assets declined 13% comparing 2011 and 2010. |
INCOME STATEMENT REVIEW
Tax-equivalent net interest income increased $2.6 million or 12.6% to $23.3 million in 2011 from $20.7 million in 2010. A $1.7 million or 6.3% increase in tax-equivalent interest revenue coupled with a $0.9 million or 13.2% reduction in interest expense resulted in the increase. Growth of $40.2 million in average earning assets partially offset by a 7 basis point decline in the tax-equivalent yield led to the increase in interest revenue. The tax-equivalent yield on earning assets was 5.19% in 2011 compared to 5.26% in 2010. Specifically, the tax-equivalent yield on the loan portfolio decreased 15 basis points, as the repricing of existing adjustable-rate loans and loan originations were impacted by the historically low interest rate environment in 2011. Similarly, the yield on the investment portfolio declined 32 basis points. Repayments and maturities, not used to fund loans, were reinvested at lower rates. The growth in earning assets primarily resulted from an increase of $56.4 million or 15.5% in average loans. Partially offsetting the loan growth was a decrease in investments, interest-bearing balances and federal funds sold of $16.2 million or 10.6%. The reduction in interest expense resulted from a 28 basis point decrease in the cost of funds partially offset by a $24.7 million increase in the average volume of interest-bearing liabilities. The cost of funds was impacted by proactive pricing practices in light of the low interest rate environment, as well as a shift from higher-cost certificates of deposit to lower-cost interest-bearing transaction accounts. The tax equivalent net interest spread improved 20 basis points from 3.73% in 2010 to 3.93% in 2011, while the tax-equivalent net interest margin widened 17 basis points from 4.00% in 2010 to 4.17% in 2011. In addition, the net interest margin for the fourth quarter improved 2 basis points in comparison to the previous quarter.
The provision for loan losses totaled $1.8 million in 2011 compared to $2.2 million in 2010. For the fourth quarter of 2011 and 2010, the provision for loan losses amounted to $300 thousand and $180 thousand, respectively.
Noninterest revenue increased $1.3 million or 29.8% to $5.6 million in 2011 from $4.3 million in 2010. Revenue received from our Wealth Management Division increased $352 thousand or 115.4% as a result of acquiring an existing investment advisory business in the fourth quarter of 2010. Included in noninterest revenue in 2011 was a $1.7 million gain on the sale of a commercial property held as other real estate. Service charges, fees and commissions declined $487 thousand, while continued weakness in the housing market contributed to a $71 thousand reduction in mortgage banking income. For the fourth quarter, noninterest revenue totaled $1,093 thousand in 2011 and $952 thousand in 2010.
Noninterest expense increased $2.1 million or 15.6% to $15.3 million in 2011 from $13.2 million in 2010. Payroll-related expenses rose $937 thousand or 17.0% as a result of additional staffing and normal merit increases. In addition, we experienced a $378 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 increased $750 thousand or 14.3% comparing 2011 and 2010. Year-to-date operating efficiency improved as evidenced by a reduction in the operating efficiency ratio to 56.1% in 2011 compared to 56.7% in 2010. For the fourth quarter, noninterest expense increased $893 thousand or 27.9% in comparison to the same period last year. The increase was primarily a result of additional staffing and flood related expenses.
BALANCE SHEET REVIEW
Total assets increased $62.8 million or 11.2% to $621.4 million at December 31, 2011, from $558.6 million at December 31, 2010. The balance sheet growth was driven by an increase in total deposits of $55.6 million or 12.7% to $494.3 million at the end of 2011, from $438.7 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 $54.3 million or 13.9% to $445.1 million at December 31, 2011, from $390.8 million at year-end 2010. Available-for-sale investment securities increased $18.1 million or 14.9% to $139.9 million from $121.8 million comparing December 31, 2011 and 2010.
Stockholders' equity equaled $59.6 million or $19.11 per share at December 31, 2011, and $50.5 million or $16.07 per share at December 31, 2010. Record earnings and the recognition of a net improvement in other comprehensive income more than offset the impact of stock repurchases and dividends. Our capital to assets was 9.59% at the close of the fourth quarter of 2011, an improvement compared to 9.04% one year earlier. All of our capital ratios significantly exceeded regulatory standards for well capitalized institutions at December 31, 2011. Dividends declared were $0.20 per share for the fourth quarter and $0.80 per share year-to-date in 2011. As a percentage of net income, dividends declared amounted to 32.1% in 2011. Accumulated other comprehensive income increased $4.5 million from year-end 2010, which resulted directly from an increase in the market value of available-for-sale investment securities.
Nonperforming assets equaled $9.0 million or 2.02% of loans, net of unearned income and foreclosed assets at December 31, 2011, compared to $10.3 million or 2.61% one year earlier. The improvement in asset quality resulted from a reduction in foreclosed assets offset partially by increases in nonaccrual loans and accruing loans past due 90 days or more. Loans charged-off, net of recoveries, decreased $894 thousand to $545 thousand in 2011, from $1,439 thousand in 2010. The provision for loan losses was $300 thousand and $1.8 million for the fourth quarter and year ended December 31, 2011, compared to $180 thousand and $2.2 million for the respective periods of 2010. The allowance for loan losses equaled $5.3 million or 1.20% of loans, net of unearned income, at December 31, 2011, compared to $4.1 million or 1.05% at year-end 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.
| |
| Peoples Financial Services Corp. | |
| Five Quarter Trend | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Key performance data: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | |
| Net income | | $ | 0.57 | | | $ | 0.60 | | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | |
| Cash dividends declared | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Book value | | $ | 19.11 | | | $ | 18.86 | | | $ | 17.90 | | | $ | 16.70 | | | $ | 16.07 | |
| Tangible book value | | $ | 18.89 | | | $ | 18.59 | | | $ | 17.62 | | | $ | 16.39 | | | $ | 15.74 | |
| Market value: | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 28.25 | | | $ | 28.25 | | | $ | 27.50 | | | $ | 28.00 | | | $ | 28.00 | |
| Low | | $ | 27.05 | | | $ | 26.90 | | | $ | 25.50 | | | $ | 26.31 | | | $ | 26.60 | |
| Closing | | $ | 28.25 | | | $ | 27.55 | | | $ | 27.05 | | | $ | 26.31 | | | $ | 26.60 | |
| Market capitalization | | $ | 88,108 | | | $ | 86,205 | | | $ | 85,036 | | | $ | 82,700 | | | $ | 83,570 | |
| Common shares outstanding | | | 3,118,856 | | | | 3,129,056 | | | | 3,143,656 | | | | 3,143,281 | | | | 3,141,731 | |
| | | | | | | | | | | | | | | | | | | | | |
| Selected ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average stockholders' equity | | | 12.54 | % | | | 13.62 | % | | | 18.56 | % | | | 14.84 | % | | | 15.77 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.17 | % | | | 1.24 | % | | | 1.63 | % | | | 1.30 | % | | | 1.45 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity to total assets | | | 9.59 | % | | | 9.72 | % | | | 9.59 | % | | | 9.20 | % | | | 9.04 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 60.61 | % | | | 58.09 | % | | | 50.98 | % | | | 55.82 | % | | | 53.03 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to loans, net, and foreclosed assets | | | 2.02 | % | | | 2.06 | % | | | 2.05 | % | | | 2.56 | % | | | 2.61 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans, net | | | 0.06 | % | | | 0.28 | % | | | 0.01 | % | | | 0.17 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses to loans, net | | | 1.20 | % | | | 1.20 | % | | | 1.21 | % | | | 1.07 | % | | | 1.05 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Earning assets yield (FTE) | | | 5.00 | % | | | 5.08 | % | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Cost of funds | | | 1.14 | % | | | 1.27 | % | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest spread (FTE) | | | 3.86 | % | | | 3.81 | % | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 4.09 | % | | | 4.07 | % | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % |
Peoples Financial Services Corp. | |
| Consolidated Statements of Income | |
| (In thousands, except per share data) | |
| | | | | | | |
| Year Ended | | Dec 31 | | | Dec 31 | |
| | | 2011 | | | 2010 | |
| | | | | | | |
| Interest income: | | | | | | |
| Interest and fees on loans: | | | | | | |
| Taxable | | $ | 21,639 | | | $ | 19,417 | |
| Tax-exempt | | | 1,362 | | | | 1,116 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | |
| Taxable | | | 2,610 | | | | 2,943 | |
| Tax-exempt | | | 1,660 | | | | 2,027 | |
| Dividends | | | 33 | | | | 44 | |
| Interest on interest-bearing balances with banks | | | 12 | | | | 4 | |
| Interest on federal funds sold | | | 34 | | | | 26 | |
| Total interest income | | | 27,350 | | | | 25,577 | |
| | | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits | | | 4,423 | | | | 4,696 | |
| Interest on short-term borrowings | | | 310 | | | | 389 | |
| Interest on long-term debt | | | 906 | | | | 1,413 | |
| Total interest expense | | | 5,639 | | | | 6,498 | |
| Net interest income | | | 21,711 | | | | 19,079 | |
| Provision for loan losses | | | 1,794 | | | | 2,202 | |
| Net interest income after provision for loan losses | | | 19,917 | | | | 16,877 | |
| | | | | | | | | |
| Noninterest income: | | | | | | | | |
| Service charges, fees and commissions | | | 2,955 | | | | 3,442 | |
| Wealth management income | | | 657 | | | | 305 | |
| Mortgage banking income | | | 346 | | | | 417 | |
| Net gains on sale of investment securities available-for-sale | | | 25 | | | | 346 | |
| Other than temporary investment securities impairment | | | (87 | ) | | | (164 | ) |
| Net gains on sale of other real estate | | | 1,671 | | | | (56 | ) |
| Total noninterest income | | | 5,567 | | | | 4,290 | |
| | | | | | | | | |
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits expense | | | 6,435 | | | | 5,498 | |
| Net occupancy and equipment expense | | | 2,879 | | | | 2,501 | |
| Other expenses | | | 5,996 | | | | 5,246 | |
| Total noninterest expense | | | 15,310 | | | | 13,245 | |
| Income before income taxes | | | 10,174 | | | | 7,922 | |
| Provision for income tax expense | | | 2,357 | | | | 1,437 | |
| Net income | | $ | 7,817 | | | $ | 6,485 | |
| | | | | | | | | |
| Other comprehensive income: | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | | $ | 6,725 | | | $ | 2,339 | |
| Reclassification adjustment for gains included in net income | | | (25 | ) | | | (346 | ) |
| Reclassification adjustment for other than temporary impairment charges | | | 87 | | | | 164 | |
| Income tax expense related to other comprehensive income | | | 2,308 | | | | 733 | |
| Other comprehensive income, net of income taxes | | | 4,479 | | | | 1,424 | |
| Comprehensive income | | $ | 12,296 | | | $ | 7,909 | |
| | | | | | | | | |
| Per share data: | | | | | | | | |
| Net income | | $ | 2.49 | | | $ | 2.07 | |
| Cash dividends declared | | $ | 0.80 | | | $ | 0.79 | |
| Average common shares outstanding | | | 3,136,663 | | | | 3,139,606 | |
| Peoples Financial Services Corp. | |
| Consolidated Statements of Income | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | |
| Three months ended | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | |
| Interest and fees on loans: | | | | | | | | | | | | | | |
| Taxable | $ | 5,585 | | | $ | 5,505 | | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | |
| Tax-exempt | | 328 | | | | 331 | | | | 346 | | | | 357 | | | | 293 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | | | | | | | | | | | | |
| Taxable | | 672 | | | | 639 | | | | 633 | | | | 666 | | | | 716 | |
| Tax-exempt | | 377 | | | | 397 | | | | 411 | | | | 475 | | | | 520 | |
| Dividends | | 7 | | | | 9 | | | | 8 | | | | 9 | | | | 9 | |
| Interest on interest-bearing balances with banks | | 4 | | | | 3 | | | | 3 | | | | 2 | | | | 1 | |
| Interest on federal funds sold | | 8 | | | | 13 | | | | 11 | | | | 2 | | | | 6 | |
| Total interest income | | 6,981 | | | | 6,897 | | | | 6,825 | | | | 6,647 | | | | 6,506 | |
| | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | 1,079 | | | | 1,168 | | | | 1,132 | | | | 1,044 | | | | 1,058 | |
| Interest on short-term borrowings | | 72 | | | | 76 | | | | 76 | | | | 86 | | | | 102 | |
| Interest on long-term debt | | 178 | | | | 208 | | | | 263 | | | | 257 | | | | 273 | |
| Total interest expense | | 1,329 | | | | 1,452 | | | | 1,471 | | | | 1,387 | | | | 1,433 | |
| Net interest income | | 5,652 | | | | 5,445 | | | | 5,354 | | | | 5,260 | | | | 5,073 | |
| Provision for loan losses | | 300 | | | | 269 | | | | 804 | | | | 421 | | | | 180 | |
| Net interest income after provision for loan losses | | 5,352 | | | | 5,176 | | | | 4,550 | | | | 4,839 | | | | 4,893 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | |
| Service charges, fees and commissions | | 799 | | | | 736 | | | | 711 | | | | 709 | | | | 690 | |
| Wealth management income | | 140 | | | | 142 | | | | 236 | | | | 139 | | | | 65 | |
| Mortgage banking income | | 168 | | | | 32 | | | | 98 | | | | 48 | | | | 109 | |
| Net gains on sale of investment securities available-for-sale | | (12 | ) | | | 25 | | | | 2 | | | | 10 | | | | 123 | |
| Other than temporary investment securities impairment | | | | | | (3 | ) | | | | | | | (84 | ) | | | (24 | ) |
| Net gains on sale of other real estate | | (2 | ) | | | 90 | | | | 1,583 | | | | | | | | (11 | ) |
| Total noninterest income | | 1,093 | | | | 1,022 | | | | 2,630 | | | | 822 | | | | 952 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits expense | | 1,713 | | | | 1,648 | | | | 1,628 | | | | 1,446 | | | | 1,302 | |
| Net occupancy and equipment expense | | 766 | | | | 738 | | | | 699 | | | | 676 | | | | 624 | |
| Other expenses | | 1,609 | | | | 1,371 | | | | 1,743 | | | | 1,273 | | | | 1,269 | |
| Total noninterest expense | | 4,088 | | | | 3,757 | | | | 4,070 | | | | 3,395 | | | | 3,195 | |
| Income before income taxes | | 2,357 | | | | 2,441 | | | | 3,110 | | | | 2,266 | | | | 2,650 | |
| Provision for income tax expense | | 557 | | | | 582 | | | | 751 | | | | 467 | | | | 607 | |
| Net income | $ | 1,800 | | | $ | 1,859 | | | $ | 2,359 | | | $ | 1,799 | | | $ | 2,043 | |
| | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income: | | | | | | | | | | | | | | | | | | | |
| Unrealized holding gains on investment securities available-for-sale | $ | (466 | ) | | $ | 2,908 | | | $ | 3,183 | | | $ | 1,100 | | | $ | (5,775 | ) |
| Reclassification adjustment for gains included in net income | | 12 | | | | (25 | ) | | | (2 | ) | | | (10 | ) | | | (123 | ) |
| Reclassification adjustment for other than temporary impairment charges | | | | | | 3 | | | | | | | | 84 | | | | 24 | |
| Income tax expense related to other comprehensive income | | (154 | ) | | | 981 | | | | 1,082 | | | | 399 | | | | (1,997 | ) |
| Other comprehensive income, net of income taxes | | (300 | ) | | | 1,905 | �� | | | 2,099 | | | | 775 | | | | (3,877 | ) |
| Comprehensive income | $ | 1,500 | | | $ | 3,764 | | | $ | 4,458 | | | $ | 2,574 | | | $ | (1,834 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | | | | |
| Net income | $ | 0.57 | | | $ | 0.60 | | | $ | 0.75 | | | $ | 0.57 | | | $ | 0.65 | |
| Cash dividends declared | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | |
| Average common shares outstanding | | 3,123,569 | | | | 3,134,591 | | | | 3,146,611 | | | | 3,142,137 | | | | 3,141,438 | |
| Peoples Financial Services Corp. | |
| Details of Net Interest and Net Interest Margin | |
| (In thousands, fully taxable equivalent basis) | |
| | | | | | | | | | | | | | | | |
| Three months ended | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| | | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Net interest income: | | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 5,585 | | | $ | 5,505 | | | $ | 5,413 | | | $ | 5,136 | | | $ | 4,961 | |
| Tax-exempt | | | 497 | | | | 502 | | | | 524 | | | | 541 | | | | 444 | |
| Total loans, net | | | 6,082 | | | | 6,007 | | | | 5,937 | | | | 5,677 | | | | 5,405 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 679 | | | | 648 | | | | 641 | | | | 675 | | | | 725 | |
| Tax-exempt | | | 571 | | | | 602 | | | | 623 | | | | 720 | | | | 788 | |
| Total investments | | | 1,250 | | | | 1,250 | | | | 1,264 | | | | 1,395 | | | | 1,513 | |
| Interest-bearing balances with banks | | | 4 | | | | 3 | | | | 3 | | | | 2 | | | | 1 | |
| Federal funds sold | | | 8 | | | | 13 | | | | 11 | | | | 2 | | | | 6 | |
| Total interest income | | | 7,344 | | | | 7,272 | | | | 7,215 | | | | 7,076 | | | | 6,925 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,079 | | | | 1,168 | | | | 1,132 | | | | 1,044 | | | | 1,058 | |
| Short-term borrowings | | | 72 | | | | 76 | | | | 76 | | | | 86 | | | | 102 | |
| Long-term debt | | | 178 | | | | 208 | | | | 263 | | | | 257 | | | | 273 | |
| Total interest expense | | | 1,329 | | | | 1,452 | | | | 1,471 | | | | 1,387 | | | | 1,433 | |
| Net interest income | | $ | 6,015 | | | $ | 5,820 | | | $ | 5,744 | | | $ | 5,689 | | | $ | 5,492 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 5.51 | % | | | 5.59 | % | | | 5.71 | % | | | 5.70 | % | | | 5.64 | % |
| Tax-exempt | | | 5.83 | % | | | 5.74 | % | | | 5.73 | % | | | 5.77 | % | | | 6.35 | % |
| Total loans, net | | | 5.53 | % | | | 5.61 | % | | | 5.71 | % | | | 5.70 | % | | | 5.70 | % |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 2.71 | % | | | 3.20 | % | | | 3.75 | % | | | 3.87 | % | | | 3.43 | % |
| Tax-exempt | | | 5.93 | % | | | 5.95 | % | | | 6.03 | % | | | 6.15 | % | | | 6.04 | % |
| Total investments | | | 3.61 | % | | | 4.12 | % | | | 4.61 | % | | | 4.78 | % | | | 4.42 | % |
| Interest-bearing balances with banks | | | 1.28 | % | | | 0.86 | % | | | 0.88 | % | | | 1.14 | % | | | 1.25 | % |
| Federal funds sold | | | 0.40 | % | | | 0.25 | % | | | 0.22 | % | | | 0.13 | % | | | 0.13 | % |
| Total earning assets | | | 5.00 | % | | | 5.08 | % | | | 5.27 | % | | | 5.43 | % | | | 5.17 | % |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1.07 | % | | | 1.17 | % | | | 1.17 | % | | | 1.15 | % | | | 1.16 | % |
| Short-term borrowings | | | 0.68 | % | | | 0.81 | % | | | 0.89 | % | | | 0.91 | % | | | 0.98 | % |
| Long-term debt | | | 3.69 | % | | | 3.79 | % | | | 3.92 | % | | | 3.83 | % | | | 3.93 | % |
| Total interest-bearing liabilities | | | 1.14 | % | | | 1.27 | % | | | 1.31 | % | | | 1.30 | % | | | 1.32 | % |
| Net interest spread | | | 3.86 | % | | | 3.82 | % | | | 3.96 | % | | | 4.13 | % | | | 3.85 | % |
| Net interest margin | | | 4.09 | % | | | 4.07 | % | | | 4.20 | % | | | 4.36 | % | | | 4.10 | % |
Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Dec. 31, | | | Sept 30 | | | June 30 | | | March 31 | | | Dec. 31, | |
| At period end | | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 9,488 | | | $ | 9,787 | | | $ | 12,736 | | | $ | 9,661 | | | $ | 6,731 | |
| Interest-bearing balances with banks | | | 1,071 | | | | 1,007 | | | | 1,007 | | | | 1,110 | | | | 107 | |
| Federal funds sold | | | | | | | 17,174 | | | | 9,357 | | | | 15,791 | | | | 11,003 | |
| Investment securities available-for-sale | | | 139,899 | | | | 128,956 | | | | 114,096 | | | | 107,091 | | | | 121,772 | |
| Loans held for sale | | | 569 | | | | 1,206 | | | | 92 | | | | 517 | | | | 30 | |
| Loans, net of unearned income | | | 445,103 | | | | 427,249 | | | | 426,655 | | | | 407,842 | | | | 390,772 | |
| Less: allowance for loan losses | | | 5,349 | | | | 5,119 | | | | 5,153 | | | | 4,356 | | | | 4,100 | |
| Net loans | | | 439,754 | | | | 422,130 | | | | 421,502 | | | | 403,486 | | | | 386,672 | |
| Premises and equipment, net | | | 7,916 | | | | 8,039 | | | | 8,171 | | | | 8,361 | | | | 8,238 | |
| Accrued interest receivable | | | 3,448 | | | | 3,240 | | | | 3,272 | | | | 3,020 | | | | 3,003 | |
| Other assets | | | 19,259 | | | | 15,616 | | | | 16,347 | | | | 21,291 | | | | 21,031 | |
| Total assets | | $ | 621,404 | | | $ | 607,155 | | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 92,985 | | | $ | 84,572 | | | $ | 78,216 | | | $ | 76,958 | | | $ | 73,663 | |
| Interest-bearing | | | 401,298 | | | | 401,588 | | | | 392,353 | | | | 376,614 | | | | 365,071 | |
| Total deposits | | | 494,283 | | | | 486,160 | | | | 470,569 | | | | 453,572 | | | | 438,734 | |
| Short-term borrowings | | | 43,791 | | | | 38,892 | | | | 36,352 | | | | 35,293 | | | | 38,724 | |
| Long-term debt | | | 18,927 | | | | 21,620 | | | | 21,862 | | | | 27,100 | | | | 27,336 | |
| Accrued interest payable | | | 284 | | | | 282 | | | | 307 | | | | 398 | | | | 311 | |
| Other liabilities | | | 4,506 | | | | 1,178 | | | | 1,220 | | | | 1,471 | | | | 2,966 | |
| Total liabilities | | | 561,791 | | | | 548,132 | | | | 530,310 | | | | 517,834 | | | | 508,071 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Common stock, par value $2.00 authorized | | | | | | | | | | | | | | | | | | | | |
| 12,500,000, shares issued 3,341,251; | | | 6,683 | | | | 6,683 | | | | 6,683 | | | | 6,683 | | | | 6,683 | |
| Capital surplus | | | 3,141 | | | | 3,141 | | | | 3,122 | | | | 3,122 | | | | 3,118 | |
| Retained earnings | | | 51,342 | | | | 50,173 | | | | 48,938 | | | | 47,219 | | | | 46,048 | |
| Accumulated other comprehensive income (loss) | | | 3,645 | | | | 3,945 | | | | 2,040 | | | | (59 | ) | | | (834 | ) |
| Less: Treasury stock, at cost, shares held 222,395;212,195; | | | 5,198 | | | | 4,919 | | | | 4,513 | | | | 4,471 | | | | 4,499 | |
| 197,595;197,970; 197,520 | | | | | | | | | | | | | | | | | | | | |
| Total stockholders' equity | | | 59,613 | | | | 59,023 | | | | 56,270 | | | | 52,494 | | | | 50,516 | |
| Total liabilities and stockholders' equity | | $ | 621,404 | | | $ | 607,155 | | | $ | 586,580 | | | $ | 570,328 | | | $ | 558,587 | |
Peoples Financial Services Corp. | |
| Consolidated Balance Sheets | |
| (In thousands, except per share data) | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| Average quarterly balances | | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 402,315 | | | $ | 390,478 | | | $ | 380,528 | | | $ | 365,573 | | | $ | 348,786 | |
| Tax-exempt | | | 33,812 | | | | 34,711 | | | | 36,685 | | | | 38,008 | | | | 27,739 | |
| Total loans, net | | | 436,127 | | | | 425,189 | | | | 417,213 | | | | 403,581 | | | | 376,525 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 99,252 | | | | 80,221 | | | | 68,614 | | | | 70,781 | | | | 83,974 | |
| Tax-exempt | | | 38,217 | | | | 40,105 | | | | 41,434 | | | | 47,488 | | | | 51,788 | |
| Total investments | | | 137,469 | | | | 120,326 | | | | 110,048 | | | | 118,269 | | | | 135,762 | |
| Interest-bearing balances with banks | | | 1,236 | | | | 1,386 | | | | 1,364 | | | | 714 | | | | 317 | |
| Federal funds sold | | | 8,010 | | | | 20,693 | | | | 20,504 | | | | 6,028 | | | | 18,624 | |
| Total earning assets | | | 582,842 | | | | 567,594 | | | | 549,129 | | | | 528,592 | | | | 531,228 | |
| Other assets | | | 27,950 | | | | 28,378 | | | | 32,970 | | | | 32,316 | | | | 29,478 | |
| Total assets | | $ | 610,792 | | | $ | 595,972 | | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | |
| | | | | | | | | | | | | | | | | | | | | |
| Liabilities and stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 400,678 | | | $ | 395,354 | | | $ | 387,655 | | | $ | 366,632 | | | $ | 360,808 | |
| Noninterest-bearing | | | 87,573 | | | | 83,458 | | | | 78,959 | | | | 74,742 | | | | 75,411 | |
| Total deposits | | | 488,251 | | | | 478,812 | | | | 466,614 | | | | 441,374 | | | | 436,219 | |
| Short-term borrowings | | | 42,290 | | | | 37,231 | | | | 34,373 | | | | 38,532 | | | | 41,245 | |
| Long-term debt | | | 19,140 | | | | 21,749 | | | | 26,935 | | | | 27,227 | | | | 27,559 | |
| Other liabilities | | | 4,176 | | | | 4,014 | | | | 3,192 | | | | 4,613 | | | | 4,282 | |
| Total liabilities | | | 553,857 | | | | 541,806 | | | | 531,114 | | | | 511,746 | | | | 509,305 | |
| Stockholders' equity | | | 56,935 | | | | 54,166 | | | | 50,985 | | | | 49,162 | | | | 51,401 | |
| Total liabilities and stockholders' equity | | $ | 610,792 | | | $ | 595,972 | | | $ | 582,099 | | | $ | 560,908 | | | $ | 560,706 | |
| Peoples Financial Services Corp. | |
| Asset Quality Data | |
| (In thousands) | |
| | | | | | | | | | | | | | | | |
| | | Dec 31 | | | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | |
| At quarter end | | 2011 | | | 2011 | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | | | | | | | |
| Nonaccrual/restructured loans | | $ | 7,930 | | | $ | 7,977 | | | $ | 8,322 | | | $ | 6,751 | | | $ | 6,513 | |
| Accruing loans past due 90 days or more | | | 660 | | | | 429 | | | | 443 | | | | 542 | | | | 392 | |
| Foreclosed assets | | | 399 | | | | 399 | | | | | | | | 3,246 | | | | 3,387 | |
| Total nonperforming assets | | $ | 8,989 | | | $ | 8,805 | | | $ | 8,765 | | | $ | 10,539 | | | $ | 10,292 | |
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 5,119 | | | $ | 5,153 | | | $ | 4,356 | | | $ | 4,100 | | | $ | 3,928 | |
| Charge-offs | | | 83 | | | | 317 | | | | 23 | | | | 176 | | | | 20 | |
| Recoveries | | | 13 | | | | 14 | | | | 16 | | | | 11 | | | | 12 | |
| Provision for loan losses | | | 300 | | | | 269 | | | | 804 | | | | 421 | | | | 180 | |
| Ending balance | | $ | 5,349 | | | $ | 5,119 | | | $ | 5,153 | | | $ | 4,356 | | | $ | 4,100 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 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. | |
