Peoples Financial Services Corp. ( (PFIS) ) has released its Q3 earnings. Here is a breakdown of the information Peoples Financial Services Corp. presented to its investors.
Peoples Financial Services Corp. is a bank holding company for Peoples Security Bank and Trust Company, operating primarily in Pennsylvania, New Jersey, and New York, offering a range of financial services through its 39 offices.
In its latest earnings report, Peoples Financial Services Corp. revealed a significant financial downturn for the third quarter of 2024, reporting a net loss due to non-recurring merger-related charges despite an increase in net interest income.
Key financial metrics showed a decrease in net income, primarily attributed to the merger with FNCB Bancorp, Inc. This merger resulted in non-recurring charges that overshadowed the increased net interest income. The merger expanded Peoples’ assets and deposits significantly, contributing to a higher net interest margin. However, it also led to substantial acquisition costs and an increased provision for credit losses.
Despite these challenges, core net income and core pre-provision net revenue showed a positive trend when excluding non-recurring expenses, reflecting improved operational performance. The company also saw an increase in noninterest income due to the merger, with higher service charges and fees.
Looking ahead, Peoples Financial Services Corp. remains focused on integrating FNCB Bancorp’s operations and optimizing its expanded asset base, while managing the merger’s financial impact. The management is committed to leveraging the merger’s benefits to enhance shareholder value and operational efficiency.
