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Peoples Financial Services Corp. Reports First Quarter 2017 Earnings

SCRANTON, Pa., April 24, 2017 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples") (PFIS), the bank holding company for Peoples Security Bank and Trust Company, today reported unaudited financial results at and for the three months ended March 31, 2017.  Peoples reported net income of $4.8 million, or $0.65 per share for the first quarter of 2017, compared to $4.9 million, or $0.66 per share for the comparable period of 2016.

Our results for the three months ended March 31, 2017 did not include any items we consider to be non-core, however our results for the corresponding period in 2016 do include non-core items. Core net income, which we have defined to exclude net gains on the sale of investment securities available-for-sale, net of tax, for the three months ended March 31, 2017 was $4.8 million, a $75 thousand increase from $4.7 million for the same period in 2016. Core net income per share for the three months ended March 31, 2017 was $0.65, compared to $0.64 for the same period in 2016.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and core net income ratios. The reported results for 2016 included herein contain items which Peoples considers non-core, namely net gains on sales of investment securities available-for-sale. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

NOTABLES

  • Loans, net grew $26.9 million, or 7.1% annualized in the first quarter of 2017.
  • Deposits grew $26.8 million or 6.8% annualized in the first quarter of 2017.
  • Book value per share improved to $35.07 at March 31, 2017 from $34.71 at December 31, 2016, and $33.98 at March 31, 2016.
  • Tangible book value per share improved to $25.97 at March 31, 2017 from $25.57 at December 31, 2016, and $24.73 at March 31, 2016.
  • Tax-equivalent net interest margin increased 6 basis points in the first quarter of 2017 to 3.73%, compared to 3.67% for the quarter ended December 31, 2016, and decreased 8 basis points compared to 3.81% for the quarter ended March 31, 2016.
  • Tax-equivalent net interest income increased to $16.7 million for the first quarter of 2017 compared to $16.6 million for the fourth quarter of 2016, and $15.8 million for the first quarter of 2016.
  • Opened a regional business center on Emrick Boulevard, Bethlehem, PA serving the Lehigh Valley.
  • The allowance for loan losses to loans, net increased to 1.09% at March 31, 2017, from 1.04% at December 31, 2016, and 1.00% at March 31, 2016.

INCOME STATEMENT REVIEW

The tax-equivalent net interest margin for the three months ended March 31, was 3.73% in 2017, compared to 3.81% in 2016. Loan accretion included in loan interest income for the three months ended March 31, 2017 was $187 thousand, resulting in an increase in the tax-equivalent net interest margin of 4 basis points. Comparatively, loan accretion included in loan interest income for the three months ended March 31, 2016 was $215 thousand, resulting in an increase in the tax-equivalent net interest margin of 5 basis points.

Tax-equivalent net interest income for the quarter ended March 31, increased $0.9 million to $16.7 million in 2017 from $15.8 million in 2016. The increase in tax equivalent net interest income was primarily due to a $137.3 million increase in average interest-bearing assets for the three months ended March 31, 2017 when compared to the same period in 2016. The tax-equivalent yield on the loan portfolio decreased to 4.40% for the three months ended March 31, 2017 compared to 4.52% for the comparable period in 2016. Loans, net averaged $1.5 billion for the quarter ended March 31, 2017 and $1.4 billion for the comparable period in 2016. For the three months ended March 31, the tax-equivalent yield on total investments increased to 2.89% in 2017 from 2.86% in 2016. Average investments totaled $274.9 million in the first quarter of 2017 and $287.2 million in the first quarter of 2016. Average interest-bearing liabilities increased $111.0 million for the three months ended March 31, 2017, compared to the corresponding period last year. The cost of funds increased to 0.57% in the three months ended March 31, 2017 from 0.54% for the same period of 2016.

For the quarter ended March 31, the provision for loan losses was $1.2 million in both 2017 and 2016.

For the three months ended March 31, 2017 and 2016, noninterest income totaled $3.8 million and $3.9 million, respectively. No gain or loss from the sale of investment securities available-for-sale was recognized during the three months ended March 31, 2017 while a gain from the sale of investment securities of $242 thousand was recognized during the corresponding period last year.

For the first quarter of 2017, noninterest expense increased to $12.4 million from $11.6 million for the same period in 2016, an increase of $0.8 million or 6.4%. The buildout of our expansion plan led to increases in salaries and employee benefit expense when comparing the two periods. Additionally, the year ago period included a one-time $208 thousand credit to salary and employee benefits for mortgage servicing rights retained by the bank that were not previously recorded.

BALANCE SHEET REVIEW

At March 31, 2017, total assets, loans and deposits were $2.0 billion, $1.6 billion and $1.6 billion, respectively. Loans, net grew $26.9 million or 7.1% annualized in the first quarter of 2017. Loans, net grew $150.2 million or 10.7% from March 31, 2016 to March 31, 2017. Deposits grew $26.8 million or 6.8% annualized in the first quarter of 2017. Total deposits grew $140.1 million or 9.5% from March 31, 2016 to March 31, 2017. Noninterest-bearing deposits increased $4.9 million or 5.6% annualized while interest-bearing deposits increased $21.9 million or 7.2% annualized in the first quarter of 2017. Total investments were $274.8 million at March 31, 2017, including $264.6 million securities classified as available-for-sale and $10.2 million classified as held-to-maturity.

Stockholders' equity equaled $259.3 million or $35.07 per share at March 31, 2017, and $256.6 million or $34.71 per share at December 31, 2016. Tangible stockholders' equity improved to $25.97 per share at March 31, 2017, from $25.57 per share at December 31, 2016. Dividends declared for the three months ended March 31, 2017 amounted to $0.31 per share representing a dividend payout ratio of 47.7%.

ASSET QUALITY REVIEW

Nonperforming assets were $12.1 million or 0.78% of loans, net and foreclosed assets at March 31, 2017, compared to $14.2 million or 0.93% of loans, net and foreclosed assets at December 31, 2016. The allowance for loan losses equaled $17.0 million or 1.09% of loans, net at March 31, 2017 compared to $16.0 million or 1.04% of loans, net, at December 31, 2016. Loans charged-off, net of recoveries, for the three months ended March 31, 2017, equaled $192 thousand or 0.05% of average loans, compared to $17 thousand or 0.01% of average loans for the comparable period last year.

About Peoples:

Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving Bucks, Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 26 offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp., Peoples Security Bank and Trust Company, and its subsidiaries (collectively, "Peoples") that are considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.

Peoples cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; our ability to identify and address cyber-security risks and other economic, competitive, governmental, regulatory and technological factors affecting Peoples' operations, pricing, products and services and other factors that may be described in Peoples' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

In addition to these risks, acquisitions and business combinations, present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

[TABULAR MATERIAL FOLLOWS]

Summary Data

Peoples Financial Services Corp.

Five Quarter Trend

(In thousands, except share and per share data)


















Mar 31


Dec 31


Sept 30


June 30


Mar 31



2017


2016


2016


2016


2016


Key performance data:
















Per share data:
















Net income

$

0.65


$

0.64


$

0.69


$

0.66


$

0.66


Core net income (1)

$

0.65


$

0.64


$

0.69


$

0.62


$

0.64


Cash dividends declared

$

0.31


$

0.31


$

0.31


$

0.31


$

0.31


Book value

$

35.07


$

34.71


$

34.68


$

34.40


$

33.98


Tangible book value (1)

$

25.97


$

25.57


$

25.50


$

25.18


$

24.73


Market value:
















High

$

49.57


$

50.54


$

40.76


$

40.55


$

38.77


Low

$

39.66


$

38.41


$

37.93


$

35.56


$

33.22


Closing

$

41.80


$

48.70


$

40.76


$

39.14


$

37.20


Market capitalization

$

309,075


$

360,095


$

301,385


$

289,407


$

275,254


Common shares outstanding


7,394,143



7,394,143



7,394,143



7,394,143



7,399,298


Selected ratios:
















Return on average stockholders' equity


7.51

%


7.29

%


7.95

%


7.72

%


7.85

%

Core return on average stockholders' equity (1)


7.51

%


7.29

%


7.95

%


7.33

%


7.62

%

Return on average tangible stockholders' equity (1)


10.15

%


9.88

%


10.82

%


10.59

%


10.87

%

Core return on average tangible stockholders' equity (1)


10.15

%


9.88

%


10.82

%


10.05

%


10.52

%

Return on average assets


0.97

%


0.94

%


1.05

%


1.03

%


1.06

%

Core return on average assets (1)


0.97

%


0.94

%


1.05

%


0.98

%


1.03

%

Stockholders' equity to total assets


12.82

%


12.83

%


13.01

%


13.30

%


13.50

%

Efficiency ratio (2)


59.13

%


58.59

%


56.89

%


59.33

%


58.05

%

Nonperforming assets to loans, net, and foreclosed assets


0.78

%


0.93

%


0.93

%


0.90

%


0.88

%

Net charge-offs to average loans, net


0.05

%


0.30

%


0.08

%


0.16

%


0.01

%

Allowance for loan losses to loans, net


1.09

%


1.04

%


1.03

%


1.01

%


1.00

%

Interest-bearing assets yield (FTE) (3)


4.17

%


4.10

%


4.17

%


4.23

%


4.22

%

Cost of funds


0.57

%


0.56

%


0.54

%


0.55

%


0.54

%

Net interest spread (FTE) (3)


3.60

%


3.54

%


3.63

%


3.68

%


3.68

%

Net interest margin (FTE) (3)


3.73

%


3.67

%


3.76

%


3.81

%


3.81

%

 

(1)

See Reconciliation of Non-GAAP financial measures.

(2)

Total noninterest expense less amortization of intangible assets divided by tax-equivalent net interest income and noninterest income less net gains(losses) on investment securities available-for-sale.

(3)

Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate of 35%.


 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)








Mar 31


Mar 31

Three Months Ended

2017


2016

Interest income:






Interest and fees on loans:






Taxable

$

15,541


$

14,346

Tax-exempt


726



751

Interest and dividends on investment securities:






Taxable


697



687

Tax-exempt


794



875

Dividends


12



10

Interest on interest-bearing deposits in other banks


29



17

Interest on federal funds sold






Total interest income


17,799



16,686

Interest expense:






Interest on deposits


1,434



1,283

Interest on short-term borrowings


174



77

Interest on long-term debt


348



360

Total interest expense


1,956



1,720

Net interest income


15,843



14,966

Provision for loan losses


1,200



1,200

Net interest income after provision for loan losses


14,643



13,766

Noninterest income:






Service charges, fees, commissions


1,572



1,444

Merchant services income


1,015



914

Commissions and fees on fiduciary activities


508



482

Wealth management income


319



412

Mortgage banking income


179



204

Life insurance investment income


189



193

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





242

Total noninterest income


3,782



3,891

Noninterest expense:






Salaries and employee benefits expense


6,275



5,332

Net occupancy and equipment expense


2,394



2,437

Merchant services expense


730



632

Amortization of intangible assets


268



305

Other expenses


2,689



2,912

Total noninterest expense


12,356



11,618

Income before income taxes


6,069



6,039

Provision for income tax expense


1,269



1,157

Net income

$

4,800


$

4,882

Other comprehensive income (loss):






Unrealized gains on investment securities available-for-sale

$

273


$

995

Reclassification adjustment for gains included in net income





(242)

Change in pension liability






Income tax expense related to other comprehensive income


96



264

Other comprehensive income, net of income taxes


177



489

Comprehensive income

$

4,977


$

5,371

Per share data:






Net income

$

0.65


$

0.66

Cash dividends declared

$

0.31


$

0.31

Average common shares outstanding


7,394,143



7,403,510


 

 

Peoples Financial Services Corp.

Consolidated Statements of Income

(In thousands, except per share data)

















Mar 31


Dec 31


Sept 30


June 30


Mar 31

Three months ended

2017


2016


2016


2016


2016

Interest income:















Interest and fees on loans:















Taxable

$

15,541


$

15,502


$

15,294


$

14,760


$

14,346

Tax-exempt


726



730



770



780



751

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















Taxable


697



636



575



617



687

Tax-exempt


794



827



861



875



875

Dividends


12



17



10



11



10

Interest on interest-bearing deposits in other banks


29



3



15



15



17

Total interest income


17,799



17,715



17,525



17,058



16,686

Interest expense:















Interest on deposits


1,434



1,468



1,356



1,322



1,283

Interest on short-term borrowings


174



120



116



89



77

Interest on long-term debt


348



353



353



354



360

Total interest expense


1,956



1,941



1,825



1,765



1,720

Net interest income


15,843



15,774



15,700



15,293



14,966

Provision for loan losses


1,200



1,400



1,200



1,200



1,200

Net interest income after provision for loan losses


14,643



14,374



14,500



14,093



13,766

Noninterest income:















Service charges, fees, commissions


1,572



1,603



1,542



1,527



1,444

Merchant services income


1,015



990



1,257



1,038



914

Commissions and fees on fiduciary activities


508



481



539



474



482

Wealth management income


319



319



271



296



412

Mortgage banking income


179



269



217



195



204

Life insurance investment income


189



197



199



202



193

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











381



242

Total noninterest income


3,782



3,859



4,025



4,113



3,891

Noninterest expense:















Salaries and employee benefits expense


6,275



5,732



5,466



5,904



5,332

Net occupancy and equipment expense


2,394



2,424



2,316



2,245



2,437

Merchant services expense


730



723



890



748



632

Amortization of intangible assets


268



287



297



297



305

Other expenses


2,689



3,116



3,048



2,919



2,912

Total noninterest expense


12,356



12,282



12,017



12,113



11,618

Income before income taxes


6,069



5,951



6,508



6,093



6,039

Income tax expense


1,269



1,223



1,390



1,238



1,157

Net income

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882

Other comprehensive (loss) income :















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

$

273


$

(4,420)


$

(1,120)


$

1,128


$

995

Reclassification adjustment for gains included in net income











(381)



(242)

Change in pension liability





917










Income tax expense (benefit) related to other comprehensive income (loss)


96



(1,226)



(392)



262



264

Other comprehensive income (loss), net of income taxes


177



(2,277)



(728)



485



489

Comprehensive income

$

4,977


$

2,451


$

4,390


$

5,340


$

5,371

Per share data:















Net income

$

0.65


$

0.64


$

0.69


$

0.66


$

0.66

Cash dividends declared

$

0.31


$

0.31


$

0.31


$

0.31


$

0.31

Average common shares outstanding


7,394,143



7,394,143



7,394,143



7,395,127



7,403,510


 

 

Peoples Financial Services Corp.

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)


















Mar 31


Dec 31


Sept 30


June 30


Mar 31


Three months ended

2017


2016


2016


2016


2016


Net interest income:
















Interest income
















Loans, net:
















Taxable

$

15,541


$

15,502


$

15,294


$

14,760


$

14,346


Tax-exempt


1,117



1,123



1,184



1,200



1,155


Total loans, net


16,658



16,625



16,478



15,960



15,501


Investments:
















Taxable


709



653



585



628



697


Tax-exempt


1,222



1,272



1,325



1,346



1,346


Total investments


1,931



1,925



1,910



1,974



2,043


Interest on interest-bearing balances in other banks


29



3



15



15



17


Federal funds sold
















Total interest income


18,618



18,553



18,403



17,949



17,561


Interest expense:
















Deposits


1,434



1,468



1,356



1,322



1,283


Short-term borrowings


174



120



116



89



77


Long-term debt


348



353



353



354



360


Total interest expense


1,956



1,941



1,825



1,765



1,720


Net interest income

$

16,662


$

16,612


$

16,578


$

16,184


$

15,841


Loans, net:
















Taxable


4.41

%


4.33

%


4.39

%


4.47

%


4.52

%

Tax-exempt


4.30

%


4.25

%


4.36

%


4.40

%


4.45

%

Total loans, net


4.40

%


4.33

%


4.39

%


4.47

%


4.52

%

Investments:
















Taxable


1.87

%


1.72

%


1.74

%


1.79

%


1.76

%

Tax-exempt


4.30

%


4.22

%


4.28

%


4.28

%


4.24

%

Total investments


2.89

%


2.83

%


2.94

%


2.95

%


2.86

%

Interest-bearing balances with banks


1.16

%


3.58

%


1.93

%


2.16

%


1.46

%

Federal funds sold
















Total interest-bearing assets


4.17

%


4.10

%


4.17

%


4.23

%


4.22

%

Interest expense:
















Deposits


0.47

%


0.47

%


0.45

%


0.45

%


0.45

%

Short-term borrowings


0.86

%


0.63

%


0.58

%


0.57

%


0.58

%

Long-term debt


2.44

%


2.40

%


2.38

%


2.39

%


2.41

%

Total interest-bearing liabilities


0.57

%


0.56

%


0.54

%


0.55

%


0.54

%

Net interest spread


3.60

%


3.54

%


3.63

%


3.68

%


3.68

%

Net interest margin


3.73

%


3.67

%


3.76

%


3.81

%


3.81

%


 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands)

















Mar 31


Dec 31


Sept 30


June 30


Mar 31

At period end

2017


2016


2016


2016


2016

Assets:















Cash and due from banks

$

31,511


$

39,496


$

31,620


$

29,805


$

23,699

Interest-bearing balances in other banks


304



445



294



272



299

Federal funds sold















Investment securities:















Available-for-sale


264,644



259,410



249,913



251,382



264,175

Held-to-maturity


10,180



10,517



10,864



11,262



11,681

Total investments


274,824



269,927



260,777



262,644



275,856

Loans held for sale


444






360






78

Loans, net


1,559,867



1,532,965



1,522,391



1,464,808



1,409,691

Less: allowance for loan losses


16,969



15,961



15,712



14,799



14,158

Net loans


1,542,898



1,517,004



1,506,679



1,450,009



1,395,533

Premises and equipment, net


34,967



33,260



33,049



29,510



29,386

Accrued interest receivable


5,604



6,228



5,309



5,952



5,455

Goodwill


63,370



63,370



63,370



63,370



63,370

Other intangible assets, net


3,944



4,211



4,498



4,795



5,091

Other assets


65,640



65,501



65,283



65,253



63,603

Total assets

$

2,023,506


$

1,999,442


$

1,971,239


$

1,911,610


$

1,862,370

Liabilities:















Deposits:















Noninterest-bearing

$

358,538


$

353,686


$

342,782


$

323,785


$

323,456

Interest-bearing


1,257,006



1,235,071



1,223,028



1,173,078



1,152,003

Total deposits


1,615,544



1,588,757



1,565,810



1,496,863



1,475,459

Short-term borrowings


77,475



82,700



75,300



86,300



60,350

Long-term debt


57,615



58,134



58,685



59,232



59,773

Accrued interest payable


457



462



434



453



506

Other liabilities


13,096



12,771



14,570



14,437



14,837

Total liabilities


1,764,187



1,742,824



1,714,799



1,657,285



1,610,925

Stockholders' equity:















Common stock


14,788



14,788



14,788



14,788



14,799

Capital surplus


134,888



134,871



134,853



134,835



134,994

Retained earnings


113,621



111,114



108,677



105,852



103,288

Accumulated other comprehensive loss


(3,978)



(4,155)



(1,878)



(1,150)



(1,636)

Total stockholders' equity


259,319



256,618



256,440



254,325



251,445

Total liabilities and stockholders' equity

$

2,023,506


$

1,999,442


$

1,971,239


$

1,911,610


$

1,862,370


 

 

Peoples Financial Services Corp.

Consolidated Balance Sheets

(In thousands)

















Mar 31


Dec 31


Sept 30


June 30


Mar 31

Average quarterly balances

2017


2016


2016


2016


2016

Assets:















Loans, net:















Taxable

$

1,429,323


$

1,422,725


$

1,385,800


$

1,327,003


$

1,276,491

Tax-exempt


105,442



105,119



108,105



109,770



104,326

Total loans, net


1,534,765



1,527,844



1,493,905



1,436,773



1,380,817

Investments:















Taxable


159,593



150,697



136,645



144,223



159,584

Tax-exempt


115,347



119,805



123,177



126,620



127,623

Total investments


274,940



270,502



259,822



270,843



287,207

Interest-bearing balances with banks


349



333



412



372



4,686

Total interest-bearing assets


1,810,054



1,798,679



1,754,139



1,707,988



1,672,710

Other assets


194,499



192,266



188,256



184,714



178,933

Total assets

$

2,004,553


$

1,990,945


$

1,942,395


$

1,892,702


$

1,851,643

Liabilities and stockholders' equity:















Deposits:















Interest-bearing

$

1,244,021


$

1,241,586


$

1,195,645


$

1,174,686


$

1,159,159

Noninterest-bearing


346,567



341,795



337,337



327,937



313,908

Total deposits


1,590,588



1,583,381



1,532,982



1,502,623



1,473,067

Short-term borrowings


82,002



75,518



78,974



62,659



53,436

Long-term debt


57,856



58,404



58,960



59,504



60,064

Other liabilities


14,872



15,616



15,349



15,131



15,755

Total liabilities


1,745,318



1,732,919



1,686,265



1,639,917



1,602,322

Stockholders' equity


259,235



258,026



256,130



252,785



249,321

Total liabilities and stockholders' equity

$

2,004,553


$

1,990,945


$

1,942,395


$

1,892,702


$

1,851,643


 

 

Peoples Financial Services Corp.

Asset Quality Data

(In thousands)

















Mar 31


Dec 31


Sept 30


June 30


Mar 31


2017


2016


2016


2016


2016

At quarter end















Nonperforming assets:















Nonaccrual/restructured loans

$

11,446


$

12,974


$

12,409


$

9,778


$

10,020

Accruing loans past due 90 days or more


462



844



1,109



2,071



977

Foreclosed assets


236



393



703



1,353



1,409

Total nonperforming assets

$

12,144


$

14,211


$

14,221


$

13,202


$

12,406
















Three months ended















Allowance for loan losses:















Beginning balance

$

15,961


$

15,712


$

14,799


$

14,158


$

12,975

Charge-offs


311



1,358



355



632



123

Recoveries


119



207



68



73



106

Provision for loan losses


1,200



1,400



1,200



1,200



1,200

Ending balance

$

16,969


$

15,961


$

15,712


$

14,799


$

14,158


 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except share and per share data)


















Mar 31


Dec 31


Sept 30


June 30


Mar 31


Three months ended

2017


2016


2016


2016


2016


Core net income per share:
















Net income GAAP

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882


Adjustments:
















Less: Gains on sale of investment securities











381



242


Add: Gains on sale of investment securities tax adjustment











133



85


Net income Core

$

4,800


$

4,728


$

5,118


$

4,607


$

4,725


Average common shares outstanding


7,394,143



7,394,143



7,394,143



7,395,127



7,403,510


Core net income per share

$

0.65


$

0.64


$

0.69


$

0.62


$

0.64


Tangible book value:
















Total stockholders' equity

$

259,319


$

256,618


$

256,440


$

254,325


$

251,445


Less: Goodwill


63,370



63,370



63,370



63,370



63,370


Less: Other intangible assets, net


3,944



4,211



4,498



4,795



5,091


Total tangible stockholders' equity

$

192,005


$

189,037


$

188,572


$

186,160


$

182,984


Common shares outstanding


7,394,143



7,394,143



7,394,143



7,394,143



7,399,298


Tangible book value per share

$

25.97


$

25.57


$

25.50


$

25.18


$

24.73


Core return on average stockholders' equity:
















Net income GAAP

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882


Adjustments:
















Less: Gains on sale of investment securities











381



242


Add: Gains on sale of investment securities tax adjustment











133



85


Net income Core

$

4,800


$

4,728


$

5,118


$

4,607


$

4,725


Average stockholders' equity

$

259,235


$

258,026


$

256,130


$

252,785


$

249,321


Core return on average stockholders' equity


7.51

%


7.29

%


7.95

%


7.33

%


7.62

%

Return on average tangible equity:
















Net income GAAP

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882


Average stockholders' equity

$

259,235


$

258,026


$

256,130


$

252,785


$

249,321


Less: average intangibles


67,448



67,725



68,017



68,313



68,614


Average tangible stockholders' equity

$

191,787


$

190,301


$

188,113


$

184,472


$

180,707


Return on average tangible stockholders' equity


10.15

%


9.88

%


10.82

%


10.59

%


10.87

%

Core return on average tangible stockholders' equity:
















Net income GAAP

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882


Adjustments:
















Less: Gains on sale of investment securities











381



242


Add: Gains on sale of investment securities tax adjustment











133



85


Net income Core

$

4,800


$

4,728


$

5,118


$

4,607


$

4,725


Average stockholders' equity

$

259,235


$

258,026


$

256,130


$

252,785


$

249,321


Less: average intangibles


67,448



67,725



68,017



68,313



68,614


Average tangible stockholders' equity

$

191,787


$

190,301


$

188,113


$

184,472


$

180,707


Core return on average tangible stockholders' equity


10.15

%


9.88

%


10.82

%


10.05

%


10.52

%

Core return on average assets:
















Net income GAAP

$

4,800


$

4,728


$

5,118


$

4,855


$

4,882


Adjustments:
















Less: Gains on sale of investment securities











381



242


Add: Gains on sale of investment securities tax adjustment











133



85


Net income Core

$

4,800


$

4,728


$

5,118


$

4,607


$

4,725


Average assets

$

2,004,553


$

1,990,945


$

1,942,395


$

1,892,702


$

1,851,643


Core return on average assets


0.97

%


0.94

%


1.05

%


0.98

%


1.03

%


 

 

Peoples Financial Services Corp.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except share and per share data)










Mar 31


Mar 31

Three Months Ended


2017


2016

Core net income per share:







Net income GAAP


$

4,800


$

4,882

Adjustments:







Less: Gains on sale of investment securities






242

Add: Gains on sale of investment securities tax adjustment






85

Net income Core


$

4,800


$

4,725

Average common shares outstanding



7,394,143



7,403,510

Core net income per share


$

0.65


$

0.64

 

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