Exhibit 99.1
NEWS RELEASE
TO BUSINESS EDITOR:
PEOPLES FINANCIAL SERVICES CORP. REPORTS EARNINGS
Hallstead, PA, October 16 – Peoples Financial Services Corp. (OTCBB:PFIS) today reported earnings for the nine months ended September 30, 2013, of $6,305 thousand or $2.04 per share, a decrease of $639 thousand or 9.2%, compared to $6,944 thousand or $2.23 per share for the same period last year. Earnings for the third quarter 2013 totaled $1,743 thousand or $0.56 per share, a decrease of $497 thousand or 22.2%, compared to $2,240 thousand or $0.72 per share for the third quarter of 2012. The decreases in both year-to-date and quarter-to-date earnings were caused primarily by the recognition of costs associated with the pending merger between and amongst Peoples Financial Services Corp. and Penseco Financial Services Corporation.
Return on average assets was 0.98% for the third quarter and 1.23% for the nine months ended September 30, 2013, compared to 1.38% and 1.46% for the respective periods of 2012. Return on average stockholders’ equity was 10.44% and 12.81%, respectively, for the third quarter and year-to-date 2013, compared to 14.26% and 15.41% for the same periods of 2012.
“Despite us continuing to incur necessary costs to consummate the business combination expected to be completed in the fourth quarter of 2013, our core earnings continued to improve as evidenced by a 7.0% improvement in our net interest income in 2013. We are confident that the shareholders of both entities will recognize the exceptional value created through the combination of two local community banks having long established histories of providing excellent service and extensive community support to Northeastern Pennsylvania and the Southern Tier of New York State. Our Board of Directors unanimously supports the merger and recommends that shareholders vote in favor of all of the proposals presented in the joint proxy statement,” stated Alan W. Dakey, President and Chief Executive Officer. “With respect to Peoples Financial Services Corp. specifically, we are very pleased with the growth in our balance sheet in 2013. We continued to generate strong growth in deposits and our loan portfolio grew significantly in the commercial sector. We look forward to the pending merger and will continue to remain steadfast to our objectives to improve our noninterest revenue sources as well as maintaining a favorable net interest margin,” concluded Dakey.
HIGHLIGHTS
| Ÿ | Net interest income improved 7.0% in 2013 over the prior year. |
| Ÿ | Year-over-year loan growth approximated 11.3% annualized in 2013. |
| Ÿ | Deposits grew $47.5 million or 11.1% annualized in 2013. |
| Ÿ | Nonperforming assets decreased 11.8% from year-end 2012. |
INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the nine months ended September 30, improved $1,071 thousand or 5.9% to $19,164 thousand in 2013 from $18,093 thousand in 2012. A $439 thousand increase in tax-equivalent interest revenue was aided by a decrease in interest expense of $632 thousand. Growth in average earning assets of $49.2 million offset partially by a 28 basis point decrease in the tax-equivalent yield on earning assets were the primary factors contributing to the increase in interest revenue. Specifically, the tax-equivalent yield on the loan portfolio decreased 19 basis points to 5.22% in 2013 from 5.41% in 2012. In addition, average loans increased $26.7 million or 5.8% comparing the nine months ended September 30, 2013 and 2012. The tax-equivalent yield on the investment portfolio decreased 30 basis points to 3.08% in 2013 from 3.38% in 2012. Average investments increased $14.8 million or 11.2% in 2013. Partially offsetting the negative effects of the yield decrease and aiding the positive effects of earning asset growth was a decrease of 24 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 nine months ended September 30 decreased 9 basis points to 3.94% in 2013 from 4.03% in 2012. The net interest margin for the third quarter of 2013 decreased to 3.86% compared to the third quarter of 2012 at 3.89%.
The provision for loan losses was $495 thousand for the nine months ended September 30, 2013, and $1,365 thousand for the same nine months of 2012. The provision for loan losses was $165 thousand for the third quarter of 2013 compared to $330 thousand for the same period last year.
Noninterest income totaled $3,573 thousand for the nine months ended September 30, 2013, a decrease of $268 thousand or 7.0% from $3,841 thousand for the same nine months of last year. Noninterest income in 2012 included a $383 thousand gain on the sale of investment securities available-for-sale. Mortgage banking income decreased 29.9% to $458 thousand in 2013 from $653 thousand in 2012 while wealth management income increased 27.8% to $589 thousand in 2013 from $461 thousand in 2012. For the third quarter, noninterest income decreased $126 thousand to $1,135 thousand in 2013, from $1,261 thousand in 2012.
Noninterest expense for the nine months ended September 30, increased $2,202 thousand or 19.9% to $13,259 thousand in 2013 from $11,057 thousand in 2012. Employee-related costs rose $994 thousand or 18.9% as a result of increases in staffing, higher health insurance costs and normal merit increases. Additional equipment-related costs resulted in a $230 thousand or 10.0% increase in net occupancy and equipment expense. The main contributor to the $978 thousand or 28.0% increase in other expenses was various legal and professional fees incurred in conjunction with merger related costs. For the third quarter, noninterest expense totaled $5,060 thousand in 2013, an increase of $1,222 thousand or 31.8% from $3,838 thousand in 2012.
BALANCE SHEET REVIEW
Total assets equaled $714.4 million at September 30, 2013, an increase of $65.0 million compared to $649.4 million at September 30, 2012. Strong loan demand resulted in an increase of $34.7 million or 7.4% in loans, net of unearned income, to $505.1 million at the close of the third quarter of 2013 from $470.4 million one year earlier. There were $11.8 million in federal funds sold as of the end of the third quarter of 2013 compared to $3.5 million at the same point in 2013 as deposit growth outpaced loan growth thus far in 2013. Investment securities available-for-sale amounted to $155.0 million at September 30, 2013, and $139.1 million at September 30, 2012. Despite strong competition for deposits within our market area, total deposits increased $67.4 million comparing September 30, 2013 and 2012.
Stockholders’ equity equaled $68.3 million or $22.12 per share at September 30, 2013, and $65.6 million or $21.05 per share at September 30, 2012. Included in stockholders’ equity was accumulated other comprehensive income related entirely to net unrealized holding gains on available-for-sale investment securities of $2,694 thousand at September 30, 2013, compared to accumulated other comprehensive income of $4,771 thousand at the end of the same period of 2012. Dividends declared for the first nine months were $0.69 per share in 2013 and $0.64 per share in 2012.
Nonperforming assets equaled $11.0 million or 2.17% of loans, net and foreclosed assets at September 30, 2013, compared to $10.6 million or 2.23% one year earlier. Increases in nonaccrual loans and past due accruing loans exceeded the reductions in foreclosed assets.
The allowance for loan losses equaled $6.8 million or 1.35% of loans, net of unearned income, at September 30, 2013, compared to $6.7 million or 1.37% at June 30, 2013, and $6.6 million or 1.41% at December 31, 2012. The allowance for loan losses covered 62.3% of nonperforming assets at the end of the third quarter of 2013, compared to 57.1% at the end of the second quarter and 52.9% at year-end 2012. Loans charged-off, net of recoveries, for the nine months ended September 30, equaled $241 thousand or 0.07% of average loans outstanding in 2013 compared to $417 thousand or 0.12% of average loans outstanding in 2012.
Peoples Financial Services Corporation is the parent company of Peoples Neighborhood Bank (the “Bank”), an independent community bank serving Lackawanna, Wyoming and Susquehanna Counties in Pennsylvania and Broome County in New York through twelve 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, a division of the Bank’s subsidiary Peoples Advisors LLC, provides 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.
ADDITIONAL INFORMATION ABOUT THE MERGER:
Peoples Financial Services Corp. filed a registration statement on October 10, 2013, which included a joint proxy statement/prospectus of Penseco Financial Services Corporation and Peoples Financial Services Corp., and other relevant documents concerning the merger with the SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain these documents free of charge at the SEC’s website, http://www.sec.gov/. In addition, documents filed with the SEC by Peoples Financial Services Corp. will be available free of charge by written request to Mr. Scott A. Seasock, Senior Vice President and Chief Financial Officer, Peoples Financial Services Corp., 82 Franklin Avenue, Hallstead, Pennsylvania 18822 or oral request to Mr. Seasock at (570)879-6122.
The directors, executive officers, and certain other members of management and employees of Penseco Financial Services Corporation and Peoples Financial Services Corp. are participants in the solicitation of proxies in favor of the merger from the shareholders of Penseco Financial Services Corporation and Peoples Financial Services Corp. Information about the directors and executive officers of Penseco Financial Services Corporation is set forth in its Annual Report on Form 10-K filed on March 14, 2013 for the year ended December 31, 2012 (including the definitive proxy statement filed on April 1, 2013, and incorporated by reference therein). Additional information regarding the interests of such participants, as well as information about the directors and executive officers of Peoples Financial Services Corp. are included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC if and when they become available.
This document is not an offer to sell shares of Peoples Financial Services Corp. securities which may be issued in the proposed transaction. Such securities are offered only by means of the joint proxy statement/prospectus referred to above.
[TABULAR MATERIAL FOLLOWS]
Peoples Financial Services Corp.
Five Quarter Trend
(In thousands, except per share data)
| | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Key performance data: | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | |
| Net income | | $ | 0.56 | | | $ | 0.74 | | | $ | 0.74 | | | $ | 0.70 | | | $ | 0.72 | |
| Cash dividends declared | | $ | 0.23 | | | $ | 0.23 | | | $ | 0.23 | | | $ | 0.22 | | | $ | 0.22 | |
| Book value | | $ | 22.12 | | | $ | 21.89 | | | $ | 21.98 | | | $ | 21.46 | | | $ | 21.05 | |
| Tangible book value | | $ | 21.96 | | | $ | 21.73 | | | $ | 21.80 | | | $ | 21.28 | | | $ | 20.86 | |
| Market value: | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 35.50 | | | $ | 39.90 | | | $ | 34.00 | | | $ | 31.00 | | | $ | 31.00 | |
| Low | | $ | 33.50 | | | $ | 33.00 | | | $ | 30.05 | | | $ | 29.50 | | | $ | 28.80 | |
| Closing | | $ | 34.00 | | | $ | 35.25 | | | $ | 33.00 | | | $ | 30.50 | | | $ | 29.85 | |
| Market capitalization | | $ | 104,972 | | | $ | 108,824 | | | $ | 101,795 | | | $ | 94,070 | | | $ | 93,083 | |
| Common shares outstanding | | | 3,087,406 | | | | 3,087,206 | | | | 3,084,706 | | | | 3,084,256 | | | | 3,118,356 | |
| | | | | | | | | | | | | | | | | | | | |
| Selected ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Return on average stockholders' equity | | | 10.44 | % | | | 13.78 | % | | | 14.26 | % | | | 13.51 | % | | | 14.26 | % |
| | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.98 | % | | | 1.34 | % | | | 1.40 | % | | | 1.31 | % | | | 1.38 | % |
| | | | | | | | | | | | | | | | | | | | |
| Stockholders' equity to total assets | | | 9.56 | % | | | 9.81 | % | | | 10.00 | % | | | 9.86 | % | | | 10.11 | % |
| | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 68.82 | % | | | 57.37 | % | | | 56.48 | % | | | 56.90 | % | | | 55.87 | % |
| | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets to loans, net, and foreclosed assets | | | 2.17 | % | | | 2.39 | % | | | 2.61 | % | | | 2.66 | % | | | 2.23 | % |
| | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans, net | | | 0.05 | % | | | 0.05 | % | | | 0.10 | % | | | 0.04 | % | | | -0.04 | % |
| | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses to loans, net | | | 1.35 | % | | | 1.37 | % | | | 1.38 | % | | | 1.41 | % | | | 1.34 | % |
| | | | | | | | | | | | | | | | | | | | |
| Earning assets yield (FTE) | | | 4.50 | % | | | 4.69 | % | | | 4.65 | % | | | 4.57 | % | | | 4.75 | % |
| | | | | | | | | | | | | | | | | | | | |
| Cost of funds | | | 0.84 | % | | | 0.85 | % | | | 0.90 | % | | | 0.99 | % | | | 1.08 | % |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread (FTE) | | | 3.66 | % | | | 3.84 | % | | | 3.75 | % | | | 3.58 | % | | | 3.67 | % |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.86 | % | | | 4.03 | % | | | 3.95 | % | | | 3.79 | % | | | 3.89 | % |
Peoples Financial Services Corp.
Consolidated Statements of Income
(In thousands, except per share data)
| Nine Months Ended | | Sept 30 | | | Sept 30 | |
| | 2013 | | | 2012 | |
| Interest income: | | | | | | |
| Interest and fees on loans: | | | | | | |
| Taxable | | $ | 17,675 | | | $ | 16,895 | |
| Tax-exempt | | | 867 | | | | 1,128 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | |
| Taxable | | | 1,795 | | | | 1,797 | |
| Tax-exempt | | | 1,041 | | | | 1,012 | |
| Dividends | | | 17 | | | | 21 | |
| Interest on interest-bearing balances with banks | | | 2 | | | | 7 | |
| Interest on federal funds sold | | | 32 | | | | 11 | |
| Total interest income | | | 21,429 | | | | 20,871 | |
| | | | | | | | |
| Interest expense: | | | | | | | | |
| Interest on deposits | | | 3,004 | | | | 3,234 | |
| Interest on short-term borrowings | | | 100 | | | | 140 | |
| Interest on long-term debt | | | 144 | | | | 506 | |
| Total interest expense | | | 3,248 | | | | 3,880 | |
| Net interest income | | | 18,181 | | | | 16,991 | |
| Provision for loan losses | | | 495 | | | | 1,365 | |
| Net interest income after provision for loan losses | | | 17,686 | | | | 15,626 | |
| | | | | | | | |
| Noninterest income: | | | | | | | | |
| Service charges, fees, commissions and others | | | 2,527 | | | | 2,344 | |
| Wealth management income | | | 589 | | | | 461 | |
| Mortgage banking income | | | 458 | | | | 653 | |
| Net gains (losses) on sale of investment securities available-for-sale | | | (1 | ) | | | 383 | |
| Total noninterest income | | | 3,573 | | | | 3,841 | |
| | | | | | | | |
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits expense | | | 6,265 | | | | 5,271 | |
| Net occupancy and equipment expense | | | 2,520 | | | | 2,290 | |
| Other expenses | | | 4,474 | | | | 3,496 | |
| Total noninterest expense | | | 13,259 | | | | 11,057 | |
| Income before income taxes | | | 8,000 | | | | 8,410 | |
| Provision for income tax expense | | | 1,695 | | | | 1,466 | |
| Net income | | $ | 6,305 | | | $ | 6,944 | |
| | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | |
| Unrealized holding gains (losses) on investment securities available-for-sale | | $ | (3,306 | ) | | $ | 2,089 | |
| Reclassification adjustment for gains included in net income | | | 1 | | | | (383 | ) |
| Income tax expense (benefit) related to other comprehensive income | | | (1,123 | ) | | | 580 | |
| Other comprehensive income (loss), net of income taxes | | | (2,182 | ) | | | 1,126 | |
| Comprehensive income | | $ | 4,123 | | | $ | 8,070 | |
| | | | | | | | |
| Per share data: | | | | | | | | |
| Net income | | $ | 2.04 | | | $ | 2.23 | |
| Cash dividends declared | | $ | 0.69 | | | $ | 0.64 | |
| Average common shares outstanding | | | 3,085,901 | | | | 3,118,298 | |
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 | |
| | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | | |
| Interest and fees on loans: | | | | | | | | | | | | | | | |
| Taxable | | $ | 6,042 | | | $ | 6,003 | | | $ | 5,630 | | | $ | 5,732 | | | $ | 5,698 | |
| Tax-exempt | | | 278 | | | | 291 | | | | 298 | | | | 299 | | | | 316 | |
| Interest and dividends on investment securities available-for-sale: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 630 | | | | 580 | | | | 585 | | | | 528 | | | | 558 | |
| Tax-exempt | | | 345 | | | | 347 | | | | 349 | | | | 330 | | | | 325 | |
| Dividends | | | 5 | | | | 6 | | | | 6 | | | | 4 | | | | 6 | |
| Interest on interest-bearing balances with banks | | | | | | | 1 | | | | 1 | | | | 3 | | | | 2 | |
| Interest on federal funds sold | | | 18 | | | | 7 | | | | 7 | | | | 12 | | | | 11 | |
| Total interest income | | | 7,318 | | | | 7,235 | | | | 6,876 | | | | 6,908 | | | | 6,916 | |
| | | | | | | | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 1,032 | | | | 986 | | | | 986 | | | | 1,086 | | | | 1,115 | |
| Interest on short-term borrowings | | | 36 | | | | 37 | | | | 27 | | | | 26 | | | | 29 | |
| Interest on long-term debt | | | 32 | | | | 35 | | | | 77 | | | | 120 | | | | 163 | |
| Total interest expense | | | 1,100 | | | | 1,058 | | | | 1,090 | | | | 1,232 | | | | 1,307 | |
| Net interest income | | | 6,218 | | | | 6,177 | | | | 5,786 | | | | 5,676 | | | | 5,609 | |
| Provision for loan losses | | | 165 | | | | 165 | | | | 165 | | | | 330 | | | | 330 | |
| Net interest income after provision for loan losses | | | 6,053 | | | | 6,012 | | | | 5,621 | | | | 5,346 | | | | 5,279 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Service charges, fees, commissions and others | | | 895 | | | | 824 | | | | 808 | | | | 882 | | | | 804 | |
| Wealth management income | | | 195 | | | | 197 | | | | 197 | | | | 164 | | | | 180 | |
| Mortgage banking income | | | 45 | | | | 173 | | | | 240 | | | | 297 | | | | 277 | |
| Net losses on sale of investment securities available-for-sale | | | | | | | (1 | ) | | | | | | | | | | | | |
| Total noninterest income | | | 1,135 | | | | 1,193 | | | | 1,245 | | | | 1,343 | | | | 1,261 | |
| | | | | | | | | | | | | | | | | | | | |
| Noninterest expense: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits expense | | | 2,307 | | | | 2,090 | | | | 1,868 | | | | 1,776 | | | | 1,792 | |
| Net occupancy and equipment expense | | | 851 | | | | 830 | | | | 839 | | | | 790 | | | | 747 | |
| Other expenses | | | 1,902 | | | | 1,308 | | | | 1,264 | | | | 1,428 | | | | 1,299 | |
| Total noninterest expense | | | 5,060 | | | | 4,228 | | | | 3,971 | | | | 3,994 | | | | 3,838 | |
| Income before income taxes | | | 2,128 | | | | 2,977 | | | | 2,895 | | | | 2,695 | | | | 2,702 | |
| Provision for income tax expense | | | 385 | | | | 695 | | | | 615 | | | | 519 | | | | 462 | |
| Net income | | $ | 1,743 | | | $ | 2,282 | | | $ | 2,280 | | | $ | 2,176 | | | $ | 2,240 | |
| | | | | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | |
| Unrealized holding gains (losses) on investment securities available-for-sale | | $ | (520 | ) | | $ | (2,806 | ) | | $ | 20 | | | $ | 159 | | | $ | 321 | |
| Reclassification adjustment for losses included in net income | | | | | | | 1 | | | | | | | | | | | | | |
| Income tax expense (benefit) related to other comprehensive income | | | (176 | ) | | | (954 | ) | | | 7 | | | | 54 | | | | 109 | |
| Other comprehensive income (loss), net of income taxes | | | (344 | ) | | | (1,851 | ) | | | 13 | | | | 105 | | | | 212 | |
| Comprehensive income | | $ | 1,399 | | | $ | 431 | | | $ | 2,293 | | | $ | 2,281 | | | $ | 2,452 | |
| | | | | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 0.56 | | | $ | 0.74 | | | $ | 0.74 | | | $ | 0.70 | | | $ | 0.72 | |
| Cash dividends declared | | $ | 0.23 | | | $ | 0.23 | | | $ | 0.23 | | | $ | 0.22 | | | $ | 0.22 | |
| Average common shares outstanding | | | 3,087,249 | | | | 3,085,937 | | | | 3,084,487 | | | | 3,113,524 | | | | 3,118,356 | |
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 | |
| | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Net interest income: | | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 6,042 | | | $ | 6,003 | | | $ | 5,630 | | | $ | 5,732 | | | $ | 5,698 | |
| Tax-exempt | | | 422 | | | | 440 | | | | 452 | | | | 453 | | | | 479 | |
| Total loans, net | | | 6,464 | | | | 6,443 | | | | 6,082 | | | | 6,185 | | | | 6,177 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 635 | | | | 586 | | | | 591 | | | | 532 | | | | 564 | |
| Tax-exempt | | | 522 | | | | 526 | | | | 529 | | | | 500 | | | | 492 | |
| Total investments | | | 1,157 | | | | 1,112 | | | | 1,120 | | | | 1,032 | | | | 1,056 | |
| Interest-bearing balances with banks | | | | | | | 1 | | | | 1 | | | | 3 | | | | 2 | |
| Federal funds sold | | | 18 | | | | 7 | | | | 7 | | | | 12 | | | | 11 | |
| Total interest income | | | 7,639 | | | | 7,563 | | | | 7,210 | | | | 7,232 | | | | 7,246 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,032 | | | | 986 | | | | 986 | | | | 1,086 | | | | 1,115 | |
| Short-term borrowings | | | 36 | | | | 37 | | | | 27 | | | | 26 | | | | 29 | |
| Long-term debt | | | 32 | | | | 35 | | | | 77 | | | | 120 | | | | 163 | |
| Total interest expense | | | 1,100 | | | | 1,058 | | | | 1,090 | | | | 1,232 | | | | 1,307 | |
| Net interest income | | $ | 6,539 | | | $ | 6,505 | | | $ | 6,120 | | | $ | 6,000 | | | $ | 5,939 | |
| | | | | | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 5.12 | % | | | 5.29 | % | | | 5.21 | % | | | 5.22 | % | | | 5.31 | % |
| Tax-exempt | | | 5.40 | % | | | 5.39 | % | | | 5.52 | % | | | 5.49 | % | | | 5.59 | % |
| Total loans, net | | | 5.14 | % | | | 5.30 | % | | | 5.23 | % | | | 5.24 | % | | | 5.34 | % |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 2.47 | % | | | 2.42 | % | | | 2.37 | % | | | 2.07 | % | | | 2.42 | % |
| Tax-exempt | | | 4.42 | % | | | 4.48 | % | | | 4.55 | % | | | 5.41 | % | | | 5.90 | % |
| Total investments | | | 3.08 | % | | | 3.10 | % | | | 3.06 | % | | | 2.95 | % | | | 3.33 | % |
| Interest-bearing balances with banks | | | | | | | 1.40 | % | | | 0.48 | % | | | 0.93 | % | | | 0.52 | % |
| Federal funds sold | | | 0.29 | % | | | 0.20 | % | | | 0.37 | % | | | 0.25 | % | | | 0.23 | % |
| Total earning assets | | | 4.50 | % | | | 4.69 | % | | | 4.65 | % | | | 4.57 | % | | | 4.75 | % |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 0.82 | % | | | 0.82 | % | | | 0.86 | % | | | 0.93 | % | | | 0.99 | % |
| Short-term borrowings | | | 0.81 | % | | | 0.81 | % | | | 0.77 | % | | | 0.77 | % | | | 0.85 | % |
| Long-term debt | | | 4.85 | % | | | 4.96 | % | | | 3.97 | % | | | 3.61 | % | | | 3.66 | % |
| Total interest-bearing liabilities | | | 0.84 | % | | | 0.85 | % | | | 0.90 | % | | | 0.99 | % | | | 1.08 | % |
| Net interest spread | | | 3.66 | % | | | 3.84 | % | | | 3.75 | % | | | 3.58 | % | | | 3.67 | % |
| Net interest margin | | | 3.86 | % | | | 4.03 | % | | | 3.95 | % | | | 3.79 | % | | | 3.89 | % |
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 | | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 12,724 | | | $ | 9,459 | | | $ | 7,591 | | | $ | 9,777 | | | $ | 8,014 | |
| Interest-bearing balances with banks | | | 41 | | | | 298 | | | | 248 | | | | 1,126 | | | | 1,268 | |
| Federal funds sold | | | 11,755 | | | | 19,600 | | | | 15,410 | | | | 17,180 | | | | 3,525 | |
| Investment securities available-for-sale | | | 155,016 | | | | 138,758 | | | | 146,665 | | | | 147,780 | | | | 139,083 | |
| Loans held for sale | | | 3,616 | | | | 1,105 | | | | 785 | | | | 1,917 | | | | 1,204 | |
| Loans, net | | | 505,109 | | | | 492,213 | | | | 479,255 | | | | 465,773 | | | | 470,415 | |
| Less: allowance for loan losses | | | 6,835 | | | | 6,735 | | | | 6,635 | | | | 6,581 | | | | 6,297 | |
| Net loans | | | 498,274 | | | | 485,478 | | | | 472,620 | | | | 459,192 | | | | 464,118 | |
| Premises and equipment, net | | | 8,621 | | | | 8,748 | | | | 8,645 | | | | 8,685 | | | | 8,581 | |
| Accrued interest receivable | | | 3,395 | | | | 3,481 | | | | 3,433 | | | | 3,272 | | | | 3,391 | |
| Other assets | | | 20,984 | | | | 22,047 | | | | 22,385 | | | | 22,594 | | | | 20,232 | |
| Total assets | | $ | 714,426 | | | $ | 688,974 | | | $ | 677,782 | | | $ | 671,523 | | | $ | 649,416 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing | | $ | 117,170 | | | $ | 112,063 | | | $ | 106,516 | | | $ | 102,322 | | | $ | 97,950 | |
| Interest-bearing | | | 504,630 | | | | 484,872 | | | | 476,045 | | | | 471,989 | | | | 456,462 | |
| Total deposits | | | 621,800 | | | | 596,935 | | | | 582,561 | | | | 574,311 | | | | 554,412 | |
| Short-term borrowings | | | 17,854 | | | | 17,972 | | | | 19,975 | | | | 12,764 | | | | 13,598 | |
| Long-term debt | | | 2,507 | | | | 2,717 | | | | 2,925 | | | | 13,130 | | | | 13,333 | |
| Accrued interest payable | | | 219 | | | | 211 | | | | 204 | | | | 425 | | | | 263 | |
| Other liabilities | | | 3,760 | | | | 3,549 | | | | 4,324 | | | | 4,697 | | | | 2,171 | |
| Total liabilities | | | 646,140 | | | | 621,384 | | | | 609,989 | | | | 605,327 | | | | 583,777 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| 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 | | | 3,194 | | | | 3,191 | | | | 3,160 | | | | 3,155 | | | | 3,153 | |
| Retained earnings | | | 61,956 | | | | 60,923 | | | | 59,352 | | | | 57,781 | | | | 56,291 | |
| Accumulated other comprehensive income | | | 2,694 | | | | 3,038 | | | | 4,889 | | | | 4,876 | | | | 4,771 | |
| Less: Treasury stock, at cost, shares held 253,845; 254,045; 256,545; 256,995; 222,895 | | | 6,241 | | | | 6,245 | | | | 6,291 | | | | 6,299 | | | | 5,259 | |
| Total stockholders' equity | | | 68,286 | | | | 67,590 | | | | 67,793 | | | | 66,196 | | | | 65,639 | |
| Total liabilities and stockholders' equity | | $ | 714,426 | | | $ | 688,974 | | | $ | 677,782 | | | $ | 671,523 | | | $ | 649,416 | |
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 | | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Loans, net: | | | | | | | | | | | | | | | |
| Taxable | | $ | 467,992 | | | $ | 455,318 | | | $ | 438,073 | | | $ | 436,953 | | | $ | 426,500 | |
| Tax-exempt | | | 30,991 | | | | 32,703 | | | | 33,218 | | | | 32,844 | | | | 34,092 | |
| Total loans, net | | | 498,983 | | | | 488,021 | | | | 471,291 | | | | 469,797 | | | | 460,592 | |
| Investments: | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 102,170 | | | | 97,014 | | | | 101,328 | | | | 102,244 | | | | 92,860 | |
| Tax-exempt | | | 46,862 | | | | 47,066 | | | | 47,197 | | | | 36,785 | | | | 33,180 | |
| Total investments | | | 149,032 | | | | 144,080 | | | | 148,525 | | | | 139,029 | | | | 126,040 | |
| Interest-bearing balances with banks | | | 220 | | | | 286 | | | | 841 | | | | 1,282 | | | | 1,523 | |
| Federal funds sold | | | 24,592 | | | | 14,238 | | | | 7,652 | | | | 18,898 | | | | 19,168 | |
| Total earning assets | | | 672,827 | | | | 646,625 | | | | 628,309 | | | | 629,006 | | | | 607,323 | |
| Other assets | | | 35,596 | | | | 34,432 | | | | 34,081 | | | | 34,297 | | | | 40,111 | |
| Total assets | | $ | 708,423 | | | $ | 681,057 | | | $ | 662,390 | | | $ | 663,303 | | | $ | 647,434 | |
| | | | | | | | | | | | | | | | | | | | |
| Liabilities and stockholders' equity: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing | | $ | 499,898 | | | $ | 480,084 | | | $ | 467,597 | | | $ | 466,604 | | | $ | 449,946 | |
| Noninterest-bearing | | | 116,204 | | | | 108,037 | | | | 102,126 | | | | 100,685 | | | | 98,725 | |
| Total deposits | | | 616,102 | | | | 588,121 | | | | 569,723 | | | | 567,289 | | | | 548,671 | |
| Short-term borrowings | | | 17,629 | | | | 18,229 | | | | 14,289 | | | | 13,437 | | | | 13,638 | |
| Long-term debt | | | 2,619 | | | | 2,828 | | | | 7,868 | | | | 13,239 | | | | 17,735 | |
| Other liabilities | | | 5,851 | | | | 5,445 | | | | 5,687 | | | | 5,271 | | | | 4,908 | |
| Total liabilities | | | 642,201 | | | | 614,623 | | | | 597,567 | | | | 599,236 | | | | 584,952 | |
| Stockholders' equity | | | 66,222 | | | | 66,434 | | | | 64,823 | | | | 64,067 | | | | 62,482 | |
| Total liabilities and stockholders' equity | | $ | 708,423 | | | $ | 681,057 | | | $ | 662,390 | | | $ | 663,303 | | | $ | 647,434 | |
Peoples Financial Services Corp.
Asset Quality Data
(In thousands)
| | Sept 30 | | | June 30 | | | March 31 | | | Dec 31 | | | Sept 30 | |
| At quarter end | | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
| | | | | | | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | | | | | | | |
| Nonaccrual/restructured loans | | $ | 9,429 | | | $ | 9,416 | | | $ | 9,717 | | | $ | 9,575 | | | $ | 7,453 | |
| Accruing loans past due 90 days or more | | | 497 | | | | 419 | | | | 850 | | | | 861 | | | | 804 | |
| Foreclosed assets | | | 1,043 | | | | 1,958 | | | | 2,013 | | | | 2,003 | | | | 2,304 | |
| Total nonperforming assets | | $ | 10,969 | | | $ | 11,793 | | | $ | 12,580 | | | $ | 12,439 | | | $ | 10,561 | |
| | | | | | | | | | | | | | | | | | | | |
| Three months ended | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 6,735 | | | $ | 6,635 | | | $ | 6,581 | | | $ | 6,297 | | | $ | 5,916 | |
| Charge-offs | | | 70 | | | | 105 | | | | 169 | | | | 62 | | | | 35 | |
| Recoveries | | | 5 | | | | 40 | | | | 58 | | | | 16 | | | | 86 | |
| Provision for loan losses | | | 165 | | | | 165 | | | | 165 | | | | 330 | | | | 330 | |
| Ending balance | | $ | 6,835 | | | $ | 6,735 | | | $ | 6,635 | | | $ | 6,581 | | | $ | 6,297 | |
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 including the Annual Report. |
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