PEOPLES FINANCIAL SERVICES CORP. Reports Third Quarter 2016 Earnings
Freitag, 21.10.2016 15:04 von PR Newswire
PR Newswire
SCRANTON, Pa., Oct. 21, 2016
SCRANTON, Pa., Oct. 21, 2016 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, today reported unaudited financial results at and for the three and nine months ended September 30, 2016. Peoples reported net income of $5.1 million, or $0.69 per share for the third quarter of 2016, compared to $4.4 million, or $0.58 per share, for the comparable period of 2015.
Core net income, excluding net gains on sale of investment securities available-for-sale, net of tax for the three months ended September 30, 2016 was $5.1 million, a $805 thousand increase from $4.3 million for the same period in 2015. Core net income per share for the three months ended September 30, 2016 was $0.69, compared to $0.57 for the same period in 2015.
Net income for the nine months ended September 30, 2016, totaled $14.9 million or $2.01 per share compared to $13.9 million or $1.84 per share for the same period last year.
Core net income for the nine months ended September 30, 2016 was $14.5 million, an increase of 9.1% from $13.2 million for the same period in 2015. Core net income per share for the nine months ended September 30, 2016 was $1.95, an increase from $1.76 for the same period in 2015. The results for the nine months ended September 30, 2016 include net gains on sale of investment securities of $623 thousand compared to $979 thousand in the comparable period of 2015.
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 and 2015 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.
THIRD QUARTER NOTABLES
- Loans, net grew $181.5 million, or 18.1% on an annualized basis for the nine months ended September 30, 2016.
- Deposits grew $110.0 million, or 10.1% on an annualized basis for the nine months ended September 30, 2016.
- Book value per share improved $1.11 to $34.68 at September 30, 2016 from $33.57 at December 31, 2016, and $1.15 from $33.53 at September 30, 2015.
- Tangible book value per share improved $1.21 to $25.50 at September 30, 2016 from $24.29 at December 31, 2015 and $1.01 from $24.49 at September 30, 2015.
- Tax-equivalent net interest margin increased to 3.76% in the third quarter of 2016 when compared to 3.74% for the third quarter of 2015. Tax-equivalent net interest margin decreased 5 basis points compared to 3.81% for the quarter ended June 30, 2016.
- Tax-equivalent net interest income increased $394 thousand to $16.6 million for the third quarter of 2016 compared to $16.2 million for the second quarter of 2016, and increased $1.7 million when compared to $14.9 million for the third quarter of 2015.
- Regulatory approval was granted to establish branch offices in Bethlehem, Pennsylvania and King of Prussia, Pennsylvania.
INCOME STATEMENT REVIEW
The tax-equivalent net interest margins for the three and nine months ended September 30, were 3.76% and 3.79% in 2016, compared to 3.74% and 3.82% in 2015, respectively. Loan accretion included in loan interest income for the three and nine months ended September 30, 2016 was $189 thousand and $561 thousand, resulting in an increase in the tax-equivalent net interest margin of 4 basis points for each respective period. Comparatively, loan accretion included in loan interest income for the three and nine months ended September 30, 2015 was $128 thousand and $475 thousand, also resulting in an increase in the tax-equivalent net interest margin of 4 basis points for each respective period.
Tax-equivalent net interest income for the nine months ended September 30, increased $3.9 million to $48.6 million in 2016 from $44.7 million in 2015. The increase in tax equivalent net interest income was primarily due to a $148.1 million increase in earning assets for the nine months ended September 30, 2016 when compared to the same period in 2015. The tax-equivalent yield on the loan portfolio decreased to 4.45% for the nine months ended September 30, 2016 compared to 4.61% for the comparable period in 2015. Loans, net averaged $1.4 billion in 2016 and $1.2 billion in 2015. For the nine months ended September 30, the tax-equivalent yield on total investments increased to 2.89% in 2016 from 2.70% in 2015. Average investments totaled $272.5 million in 2016 and $314.9 million in 2015. Average interest-bearing liabilities increased $136.0 million for the nine months ended September 30, 2016, compared to the corresponding period last year. The cost of funds increased to 0.55% in the nine months ended September 30, 2016 from 0.51% for the same period of 2015. Tax-equivalent net interest income for the three months ended September 30, increased to $16.6 million in 2016 from $14.9 million in 2015.
The provision for loan losses totaled $3.6 million for the nine months ended September 30, 2016, compared to $2.4 million for the same period last year. For the quarter ended September 30, the provision for loan losses was $1.2 million in 2016 and $900 thousand in 2015. The increase in the provision for loan losses in 2016 was primarily the result of increased loan growth.
For the nine months ended September 30, 2016 and 2015, noninterest income totaled $12.0 million. Net gains on sale of investment securities were $623 thousand in 2016 compared to $979 thousand in 2015. Increases in revenues from merchant services, income from fiduciary activities, wealth management services and life insurance investment income offset decreases in service charges, fees and commissions and income from mortgage banking activities. For the three months ended September 30, 2016 and 2015, noninterest income totaled $4.0 million. No gain or loss from the sale of investment securities available-for-sale was recognized during the three months ended September 30, 2016; a gain from the sale of investment securities of $147 thousand was recognized during the same period last year.
Noninterest expense increased $1.4 million or 4.2% to $35.7 million for the nine months ended September 30, 2016, from $34.3 million for the nine months ended September 30, 2015. For the third quarter, noninterest expense amounted to $12.0 million in 2016 and $11.7 million in 2015. The buildout of our expansion plan, wealth management platform as well as severance costs led to increases in salaries and employee benefit expense.
BALANCE SHEET REVIEW
Total assets, loans and deposits totaled $2.0 billion, $1.5 billion and $1.6 billion, respectively, at September 30, 2016. Loans, net grew $181.5 million or 18.1% on an annualized basis in the nine months ended September 30, 2016. Loans, net increased $251.8 million or 19.8% from September 30, 2015 to September 30, 2016. Deposits grew $110.0 million or 10.1% on an annualized basis in the nine months ended September 30, 2016. Total deposits increased $121.2 million or 8.4% at September 30, 2016 when compared to September 30, 2015. Noninterest-bearing deposits increased $21.8 million or 9.1% on an annualized basis while interest-bearing deposits increased $88.2 million or 10.4% on an annualized basis for the nine months ended September 30, 2016. Total investments were $260.8 million at September 30, 2016, including $249.9 million securities classified as available-for-sale and $10.9 million classified as held-to-maturity.
Stockholders' equity equaled $256.4 million or $34.68 per share at September 30, 2016, and $248.8 million or $33.57 per share at December 31, 2015. Tangible stockholders' equity improved to $25.50 per share at September 30, 2016, from $24.29 per share at December 31, 2015. Dividends declared for the nine months ended September 30, 2016 amounted to $0.93 per share representing a dividend payout ratio of 46.3%.
ASSET QUALITY REVIEW
Nonperforming assets were $14.2 million or 0.93% of loans, net and foreclosed assets at September 30, 2016, compared to $12.5 million or 0.93% at December 31, 2015. The allowance for loan losses equaled $15.7 million or 1.03% of loans, net at September 30, 2016 compared to $13.0 million or 0.97% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the nine months ended September 30, 2016, equaled $863 thousand or 0.08% of average loans, compared to $695 thousand or 0.08% of average loans for 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, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 24 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 per share data) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
2016 |
2016 |
2016 |
2015 |
2015 |
||||||||||||
|
Key performance data: |
||||||||||||||||
|
Per share data: |
||||||||||||||||
|
Net income |
$ |
0.69 |
$ |
0.66 |
$ |
0.66 |
$ |
0.52 |
$ |
0.58 |
||||||
|
Core net income (1) |
$ |
0.69 |
$ |
0.62 |
$ |
0.64 |
$ |
0.50 |
$ |
0.57 |
||||||
|
Cash dividends declared |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
||||||
|
Book value |
$ |
34.68 |
$ |
34.40 |
$ |
33.98 |
$ |
33.57 |
$ |
33.53 |
||||||
|
Tangible book value (1) |
$ |
25.50 |
$ |
25.18 |
$ |
24.73 |
$ |
24.29 |
$ |
24.49 |
||||||
|
Market value: |
||||||||||||||||
|
High |
$ |
40.76 |
$ |
40.55 |
$ |
38.77 |
$ |
41.96 |
$ |
41.60 |
||||||
|
Low |
$ |
37.93 |
$ |
35.56 |
$ |
33.22 |
$ |
34.43 |
$ |
34.56 |
||||||
|
Closing |
$ |
40.76 |
$ |
39.14 |
$ |
37.20 |
$ |
38.08 |
$ |
34.93 |
||||||
|
Market capitalization |
$ |
301,385 |
$ |
289,407 |
$ |
275,254 |
$ |
282,196 |
$ |
262,642 |
||||||
|
Common shares outstanding |
7,394,143 |
7,394,143 |
7,399,298 |
7,410,606 |
7,519,109 |
|||||||||||
|
Selected ratios: |
||||||||||||||||
|
Return on average stockholders' equity |
7.95 |
% |
7.72 |
% |
7.85 |
% |
6.12 |
% |
7.00 |
% | ||||||
|
Core return on average stockholders' equity (1) |
7.95 |
% |
7.33 |
% |
7.62 |
% |
5.90 |
% |
6.85 |
% | ||||||
|
Return on average tangible stockholders' equity (1) |
10.82 |
% |
10.59 |
% |
10.87 |
% |
8.43 |
% |
9.62 |
% | ||||||
|
Core return on average tangible stockholders' equity (1) |
10.82 |
% |
10.05 |
% |
10.52 |
% |
8.14 |
% |
9.41 |
% | ||||||
|
Return on average assets |
1.05 |
% |
1.03 |
% |
1.06 |
% |
0.85 |
% |
1.00 |
% | ||||||
|
Core return on average assets (1) |
1.05 |
% |
0.98 |
% |
1.03 |
% |
0.82 |
% |
0.98 |
% | ||||||
|
Stockholders' equity to total assets |
13.01 |
% |
13.30 |
% |
13.50 |
% |
13.68 |
% |
14.22 |
% | ||||||
|
Efficiency ratio (2) |
56.89 |
% |
59.33 |
% |
58.05 |
% |
64.16 |
% |
60.82 |
% | ||||||
|
Nonperforming assets to loans, net, and foreclosed assets |
0.93 |
% |
0.90 |
% |
0.88 |
% |
0.93 |
% |
0.92 |
% | ||||||
|
Net charge-offs to average loans, net |
0.08 |
% |
0.16 |
% |
0.01 |
% |
0.11 |
% |
0.09 |
% | ||||||
|
Allowance for loan losses to loans, net |
1.03 |
% |
1.01 |
% |
1.00 |
% |
0.97 |
% |
0.95 |
% | ||||||
|
Earning assets yield (FTE) (3) |
4.17 |
% |
4.23 |
% |
4.22 |
% |
4.17 |
% |
4.11 |
% | ||||||
|
Cost of funds |
0.54 |
% |
0.55 |
% |
0.54 |
% |
0.51 |
% |
0.50 |
% | ||||||
|
Net interest spread (FTE) (3) |
3.63 |
% |
3.68 |
% |
3.68 |
% |
3.66 |
% |
3.61 |
% | ||||||
|
Net interest margin (FTE) (3) |
3.76 |
% |
3.81 |
% |
3.81 |
% |
3.79 |
% |
3.74 |
% | ||||||
|
(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) | |||||||
|
Sept 30 |
Sept 30 |
||||||
|
Nine Months Ended |
2016 |
2015 |
|||||
|
Interest income: |
|||||||
|
Interest and fees on loans: |
|||||||
|
Taxable |
$ |
44,400 |
$ |
40,072 |
|||
|
Tax-exempt |
2,301 |
1,714 |
|||||
|
Interest and dividends on investment securities: |
|||||||
|
Taxable |
1,879 |
2,508 |
|||||
|
Tax-exempt |
2,611 |
2,498 |
|||||
|
Dividends |
31 |
24 |
|||||
|
Interest on interest-bearing deposits in other banks |
47 |
39 |
|||||
|
Interest on federal funds sold |
9 |
||||||
|
Total interest income |
51,269 |
46,864 |
|||||
|
Interest expense: |
|||||||
|
Interest on deposits |
3,961 |
3,689 |
|||||
|
Interest on short-term borrowings |
282 |
23 |
|||||
|
Interest on long-term debt |
1,067 |
756 |
|||||
|
Total interest expense |
5,310 |
4,468 |
|||||
|
Net interest income |
45,959 |
42,396 |
|||||
|
Provision for loan losses |
3,600 |
2,400 |
|||||
|
Net interest income after provision for loan losses |
42,359 |
39,996 |
|||||
|
Noninterest income: |
|||||||
|
Service charges, fees, commissions |
4,513 |
4,685 |
|||||
|
Merchant services income |
3,209 |
2,936 |
|||||
|
Commissions and fees on fiduciary activities |
1,495 |
1,487 |
|||||
|
Wealth management income |
979 |
627 |
|||||
|
Mortgage banking income |
616 |
667 |
|||||
|
Life insurance investment income |
594 |
569 |
|||||
|
Net gains on sale of investment securities available-for-sale |
623 |
979 |
|||||
|
Total noninterest income |
12,029 |
11,950 |
|||||
|
Noninterest expense: |
|||||||
|
Salaries and employee benefits expense |
16,702 |
16,243 |
|||||
|
Net occupancy and equipment expense |
6,998 |
6,863 |
|||||
|
Merchant services expense |
2,270 |
2,006 |
|||||
|
Amortization of intangible assets |
899 |
896 |
|||||
|
Other expenses |
8,879 |
8,303 |
|||||
|
Total noninterest expense |
35,748 |
34,311 |
|||||
|
Income before income taxes |
18,640 |
17,635 |
|||||
|
Provision for income tax expense |
3,785 |
3,751 |
|||||
|
Net income |
$ |
14,855 |
$ |
13,884 |
|||
|
Other comprehensive income: |
|||||||
|
Unrealized gain (loss) on investment securities available-for-sale |
$ |
1,003 |
$ |
134 |
|||
|
Reclassification adjustment for gains included in net income |
(623) |
(979) |
|||||
|
Income tax expense (benefit) related to other comprehensive income |
133 |
(296) |
|||||
|
Other comprehensive income (loss), net of income taxes |
247 |
(549) |
|||||
|
Comprehensive income |
$ |
15,102 |
$ |
13,335 |
|||
|
Per share data: |
|||||||
|
Net income |
$ |
2.01 |
$ |
1.84 |
|||
|
Cash dividends declared |
$ |
0.93 |
$ |
0.93 |
|||
|
Average common shares outstanding |
7,397,581 |
7,543,751 |
|||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Consolidated Statements of Income | ||||||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
Three months ended |
2016 |
2016 |
2016 |
2015 |
2015 |
|||||||||||
|
Interest income: |
||||||||||||||||
|
Interest and fees on loans: |
||||||||||||||||
|
Taxable |
$ |
15,294 |
$ |
14,760 |
$ |
14,346 |
$ |
13,932 |
$ |
13,341 |
||||||
|
Tax-exempt |
770 |
780 |
751 |
637 |
585 |
|||||||||||
|
Interest and dividends on investment securities available-for-sale: |
||||||||||||||||
|
Taxable |
575 |
617 |
687 |
699 |
792 |
|||||||||||
|
Tax-exempt |
861 |
875 |
875 |
887 |
858 |
|||||||||||
|
Dividends |
10 |
11 |
10 |
11 |
9 |
|||||||||||
|
Interest on interest-bearing deposits in other banks |
15 |
15 |
17 |
10 |
13 |
|||||||||||
|
Interest on federal funds sold |
1 |
|||||||||||||||
|
Total interest income |
17,525 |
17,058 |
16,686 |
16,177 |
15,598 |
|||||||||||
|
Interest expense: |
||||||||||||||||
|
Interest on deposits |
1,356 |
1,322 |
1,283 |
1,264 |
1,229 |
|||||||||||
|
Interest on short-term borrowings |
116 |
89 |
77 |
30 |
11 |
|||||||||||
|
Interest on long-term debt |
353 |
354 |
360 |
275 |
245 |
|||||||||||
|
Total interest expense |
1,825 |
1,765 |
1,720 |
1,569 |
1,485 |
|||||||||||
|
Net interest income |
15,700 |
15,293 |
14,966 |
14,608 |
14,113 |
|||||||||||
|
Provision for loan losses |
1,200 |
1,200 |
1,200 |
1,300 |
900 |
|||||||||||
|
Net interest income after provision for loan losses |
14,500 |
14,093 |
13,766 |
13,308 |
13,213 |
|||||||||||
|
Noninterest income: |
||||||||||||||||
|
Service charges, fees, commissions |
1,542 |
1,527 |
1,444 |
1,560 |
1,531 |
|||||||||||
|
Merchant services income |
1,257 |
1,038 |
914 |
919 |
1,183 |
|||||||||||
|
Commissions and fees on fiduciary activities |
539 |
474 |
482 |
459 |
541 |
|||||||||||
|
Wealth management income |
271 |
296 |
412 |
218 |
224 |
|||||||||||
|
Mortgage banking income |
217 |
195 |
204 |
205 |
197 |
|||||||||||
|
Life insurance investment income |
199 |
202 |
193 |
198 |
192 |
|||||||||||
|
Net gains on sale of investment securities available-for-sale |
381 |
242 |
210 |
147 |
||||||||||||
|
Total noninterest income |
4,025 |
4,113 |
3,891 |
3,769 |
4,015 |
|||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits expense |
5,466 |
5,904 |
5,332 |
5,290 |
5,397 |
|||||||||||
|
Net occupancy and equipment expense |
2,316 |
2,245 |
2,437 |
2,241 |
2,246 |
|||||||||||
|
Merchant services expense |
890 |
748 |
632 |
637 |
823 |
|||||||||||
|
Amortization of intangible assets |
297 |
297 |
305 |
286 |
296 |
|||||||||||
|
Other expenses |
3,048 |
2,919 |
2,912 |
4,014 |
2,944 |
|||||||||||
|
Total noninterest expense |
12,017 |
12,113 |
11,618 |
12,468 |
11,706 |
|||||||||||
|
Income before income taxes |
6,508 |
6,093 |
6,039 |
4,609 |
5,522 |
|||||||||||
|
Income tax expense |
1,390 |
1,238 |
1,157 |
770 |
1,113 |
|||||||||||
|
Net income |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Other comprehensive (loss) income : |
||||||||||||||||
|
Unrealized (losses) gains on investment securities available-for-sale |
$ |
(1,120) |
$ |
1,128 |
$ |
995 |
$ |
(644) |
$ |
826 |
||||||
|
Reclassification adjustment for gains included in net income |
(381) |
(242) |
(210) |
(147) |
||||||||||||
|
Change in pension liability |
(296) |
|||||||||||||||
|
Income tax (benefit) expense related to other comprehensive (loss) income |
(392) |
262 |
264 |
(404) |
237 |
|||||||||||
|
Other comprehensive (loss) income, net of income taxes |
(728) |
485 |
489 |
(746) |
442 |
|||||||||||
|
Comprehensive income |
$ |
4,390 |
$ |
5,340 |
$ |
5,371 |
$ |
3,093 |
$ |
4,851 |
||||||
|
Per share data: |
||||||||||||||||
|
Net income |
$ |
0.69 |
$ |
0.66 |
$ |
0.66 |
$ |
0.52 |
$ |
0.58 |
||||||
|
Cash dividends declared |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
$ |
0.31 |
||||||
|
Average common shares outstanding |
7,394,143 |
7,395,127 |
7,403,510 |
7,435,440 |
7,536,824 |
|||||||||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Details of Net Interest and Net Interest Margin | ||||||||||||||||
|
(In thousands, fully taxable equivalent basis) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
Three months ended |
2016 |
2016 |
2016 |
2015 |
2015 |
|||||||||||
|
Net interest income: |
||||||||||||||||
|
Interest income |
||||||||||||||||
|
Loans, net: |
||||||||||||||||
|
Taxable |
$ |
15,294 |
$ |
14,760 |
$ |
14,346 |
$ |
13,932 |
$ |
13,341 |
||||||
|
Tax-exempt |
1,184 |
1,200 |
1,155 |
979 |
901 |
|||||||||||
|
Total loans, net |
16,478 |
15,960 |
15,501 |
14,911 |
14,242 |
|||||||||||
|
Investments: |
||||||||||||||||
|
Taxable |
585 |
628 |
697 |
710 |
801 |
|||||||||||
|
Tax-exempt |
1,325 |
1,346 |
1,346 |
1,366 |
1,320 |
|||||||||||
|
Total investments |
1,910 |
1,974 |
2,043 |
2,076 |
2,121 |
|||||||||||
|
Interest on interest-bearing balances in other banks |
15 |
15 |
17 |
10 |
13 |
|||||||||||
|
Federal funds sold |
1 |
|||||||||||||||
|
Total interest income |
18,403 |
17,949 |
17,561 |
16,998 |
16,376 |
|||||||||||
|
Interest expense: |
||||||||||||||||
|
Deposits |
1,356 |
1,322 |
1,283 |
1,264 |
1,229 |
|||||||||||
|
Short-term borrowings |
116 |
89 |
77 |
30 |
11 |
|||||||||||
|
Long-term debt |
353 |
354 |
360 |
275 |
245 |
|||||||||||
|
Total interest expense |
1,825 |
1,765 |
1,720 |
1,569 |
1,485 |
|||||||||||
|
Net interest income |
$ |
16,578 |
$ |
16,184 |
$ |
15,841 |
$ |
15,429 |
$ |
14,891 |
||||||
|
Loans, net: |
||||||||||||||||
|
Taxable |
4.39 |
% |
4.47 |
% |
4.52 |
% |
4.51 |
% |
4.50 |
% | ||||||
|
Tax-exempt |
4.36 |
% |
4.40 |
% |
4.45 |
% |
4.67 |
% |
4.82 |
% | ||||||
|
Total loans, net |
4.39 |
% |
4.47 |
% |
4.52 |
% |
4.52 |
% |
4.52 |
% | ||||||
|
Investments: |
||||||||||||||||
|
Taxable |
1.74 |
% |
1.79 |
% |
1.76 |
% |
1.60 |
% |
1.54 |
% | ||||||
|
Tax-exempt |
4.28 |
% |
4.28 |
% |
4.24 |
% |
4.34 |
% |
4.46 |
% | ||||||
|
Total investments |
2.94 |
% |
2.95 |
% |
2.86 |
% |
2.74 |
% |
2.60 |
% | ||||||
|
Interest-bearing balances with banks |
1.93 |
% |
2.16 |
% |
1.46 |
% |
0.83 |
% |
0.85 |
% | ||||||
|
Federal funds sold |
0.54 |
% |
||||||||||||||
|
Total earning assets |
4.17 |
% |
4.23 |
% |
4.22 |
% |
4.17 |
% |
4.11 |
% | ||||||
|
Interest expense: |
||||||||||||||||
|
Deposits |
0.45 |
% |
0.45 |
% |
0.45 |
% |
0.44 |
% |
0.43 |
% | ||||||
|
Short-term borrowings |
0.58 |
% |
0.57 |
% |
0.58 |
% |
0.42 |
% |
0.39 |
% | ||||||
|
Long-term debt |
2.38 |
% |
2.39 |
% |
2.41 |
% |
2.83 |
% |
3.10 |
% | ||||||
|
Total interest-bearing liabilities |
0.54 |
% |
0.55 |
% |
0.54 |
% |
0.51 |
% |
0.50 |
% | ||||||
|
Net interest spread |
3.63 |
% |
3.68 |
% |
3.68 |
% |
3.66 |
% |
3.61 |
% | ||||||
|
Net interest margin |
3.76 |
% |
3.81 |
% |
3.81 |
% |
3.79 |
% |
3.74 |
% | ||||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Consolidated Balance Sheets | ||||||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
At period end |
2016 |
2016 |
2016 |
2015 |
2015 |
|||||||||||
|
Assets: |
||||||||||||||||
|
Cash and due from banks |
$ |
31,620 |
$ |
29,805 |
$ |
23,699 |
$ |
28,218 |
$ |
36,015 |
||||||
|
Interest-bearing balances in other banks |
294 |
272 |
299 |
4,699 |
4,970 |
|||||||||||
|
Federal funds sold |
||||||||||||||||
|
Investment securities: |
||||||||||||||||
|
Available-for-sale |
249,913 |
251,382 |
264,175 |
284,935 |
299,832 |
|||||||||||
|
Held-to-maturity |
10,864 |
11,262 |
11,681 |
12,109 |
13,107 |
|||||||||||
|
Total investments |
260,777 |
262,644 |
275,856 |
297,044 |
312,939 |
|||||||||||
|
Loans held for sale |
360 |
78 |
3,439 |
|||||||||||||
|
Loans, net |
1,522,391 |
1,464,808 |
1,409,691 |
1,340,865 |
1,270,545 |
|||||||||||
|
Less: allowance for loan losses |
15,712 |
14,799 |
14,158 |
12,975 |
12,043 |
|||||||||||
|
Net loans |
1,506,679 |
1,450,009 |
1,395,533 |
1,327,890 |
1,258,502 |
|||||||||||
|
Premises and equipment, net |
33,049 |
29,510 |
29,386 |
28,157 |
27,002 |
|||||||||||
|
Accrued interest receivable |
5,309 |
5,952 |
5,455 |
5,796 |
5,327 |
|||||||||||
|
Goodwill |
63,370 |
63,370 |
63,370 |
63,370 |
63,370 |
|||||||||||
|
Other intangible assets, net |
4,498 |
4,795 |
5,091 |
5,397 |
4,606 |
|||||||||||
|
Other assets |
65,283 |
65,253 |
63,603 |
58,487 |
56,600 |
|||||||||||
|
Total assets |
$ |
1,971,239 |
$ |
1,911,610 |
$ |
1,862,370 |
$ |
1,819,058 |
$ |
1,772,770 |
||||||
|
Liabilities: |
||||||||||||||||
|
Deposits: |
||||||||||||||||
|
Noninterest-bearing |
$ |
342,782 |
$ |
323,785 |
$ |
323,456 |
$ |
320,978 |
$ |
303,741 |
||||||
|
Interest-bearing |
1,223,028 |
1,173,078 |
1,152,003 |
1,134,832 |
1,140,909 |
|||||||||||
|
Total deposits |
1,565,810 |
1,496,863 |
1,475,459 |
1,455,810 |
1,444,650 |
|||||||||||
|
Short-term borrowings |
75,300 |
86,300 |
60,350 |
38,325 |
30,250 |
|||||||||||
|
Long-term debt |
58,685 |
59,232 |
59,773 |
60,354 |
31,000 |
|||||||||||
|
Accrued interest payable |
434 |
453 |
506 |
560 |
496 |
|||||||||||
|
Other liabilities |
14,570 |
14,437 |
14,837 |
15,241 |
14,286 |
|||||||||||
|
Total liabilities |
1,714,799 |
1,657,285 |
1,610,925 |
1,570,290 |
1,520,682 |
|||||||||||
|
Stockholders' equity: |
||||||||||||||||
|
Common stock |
14,788 |
14,788 |
14,799 |
14,821 |
15,038 |
|||||||||||
|
Capital surplus |
134,853 |
134,835 |
134,994 |
135,371 |
139,263 |
|||||||||||
|
Retained earnings |
108,677 |
105,852 |
103,288 |
100,701 |
99,165 |
|||||||||||
|
Accumulated other comprehensive loss |
(1,878) |
(1,150) |
(1,636) |
(2,125) |
(1,378) |
|||||||||||
|
Total stockholders' equity |
256,440 |
254,325 |
251,445 |
248,768 |
252,088 |
|||||||||||
|
Total liabilities and stockholders' equity |
$ |
1,971,239 |
$ |
1,911,610 |
$ |
1,862,370 |
$ |
1,819,058 |
$ |
1,772,770 |
||||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Consolidated Balance Sheets | ||||||||||||||||
|
(In thousands except per share data) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
Average quarterly balances |
2016 |
2016 |
2016 |
2015 |
2015 |
|||||||||||
|
Assets: |
||||||||||||||||
|
Loans, net: |
||||||||||||||||
|
Taxable |
$ |
1,385,800 |
$ |
1,327,003 |
$ |
1,276,491 |
$ |
1,226,295 |
$ |
1,176,533 |
||||||
|
Tax-exempt |
108,105 |
109,770 |
104,326 |
83,176 |
74,203 |
|||||||||||
|
Total loans, net |
1,493,905 |
1,436,773 |
1,380,817 |
1,309,471 |
1,250,736 |
|||||||||||
|
Investments: |
||||||||||||||||
|
Taxable |
136,645 |
144,223 |
159,584 |
175,620 |
206,153 |
|||||||||||
|
Tax-exempt |
123,177 |
126,620 |
127,623 |
124,694 |
117,497 |
|||||||||||
|
Total investments |
259,822 |
270,843 |
287,207 |
300,314 |
323,650 |
|||||||||||
|
Interest-bearing balances with banks |
412 |
372 |
4,686 |
4,791 |
6,081 |
|||||||||||
|
Federal funds sold |
735 |
653 |
||||||||||||||
|
Total earning assets |
1,754,139 |
1,707,988 |
1,672,710 |
1,615,311 |
1,581,120 |
|||||||||||
|
Other assets |
188,256 |
184,714 |
178,933 |
171,839 |
171,390 |
|||||||||||
|
Total assets |
$ |
1,942,395 |
$ |
1,892,702 |
$ |
1,851,643 |
$ |
1,787,150 |
$ |
1,752,510 |
||||||
|
Liabilities and stockholders' equity: |
||||||||||||||||
|
Deposits: |
||||||||||||||||
|
Interest-bearing |
$ |
1,195,645 |
$ |
1,174,686 |
$ |
1,159,159 |
$ |
1,147,296 |
$ |
1,140,012 |
||||||
|
Noninterest-bearing |
337,337 |
327,937 |
313,908 |
309,665 |
305,753 |
|||||||||||
|
Total deposits |
1,532,982 |
1,502,623 |
1,473,067 |
1,456,961 |
1,445,765 |
|||||||||||
|
Short-term borrowings |
78,974 |
62,659 |
53,436 |
28,016 |
11,130 |
|||||||||||
|
Long-term debt |
58,960 |
59,504 |
60,064 |
38,494 |
31,330 |
|||||||||||
|
Other liabilities |
15,349 |
15,131 |
15,755 |
14,722 |
14,368 |
|||||||||||
|
Total liabilities |
1,686,265 |
1,639,917 |
1,602,322 |
1,538,193 |
1,502,593 |
|||||||||||
|
Stockholders' equity |
256,130 |
252,785 |
249,321 |
248,957 |
249,917 |
|||||||||||
|
Total liabilities and stockholders' equity |
$ |
1,942,395 |
$ |
1,892,702 |
$ |
1,851,643 |
$ |
1,787,150 |
$ |
1,752,510 |
||||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Asset Quality Data | ||||||||||||||||
|
(In thousands) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
2016 |
2016 |
2016 |
2015 |
2015 |
||||||||||||
|
At quarter end |
||||||||||||||||
|
Nonperforming assets: |
||||||||||||||||
|
Nonaccrual/restructured loans |
$ |
12,409 |
$ |
9,778 |
$ |
10,020 |
$ |
10,744 |
$ |
9,646 |
||||||
|
Accruing loans past due 90 days or more |
1,109 |
2,071 |
977 |
763 |
1,631 |
|||||||||||
|
Foreclosed assets |
703 |
1,353 |
1,409 |
957 |
458 |
|||||||||||
|
Total nonperforming assets |
$ |
14,221 |
$ |
13,202 |
$ |
12,406 |
$ |
12,464 |
$ |
11,735 |
||||||
|
Three months ended |
||||||||||||||||
|
Allowance for loan losses: |
||||||||||||||||
|
Beginning balance |
$ |
14,799 |
$ |
14,158 |
$ |
12,975 |
$ |
12,043 |
$ |
11,428 |
||||||
|
Charge-offs |
355 |
632 |
123 |
573 |
315 |
|||||||||||
|
Recoveries |
68 |
73 |
106 |
205 |
30 |
|||||||||||
|
Provision for loan losses |
1,200 |
1,200 |
1,200 |
1,300 |
900 |
|||||||||||
|
Ending balance |
$ |
15,712 |
$ |
14,799 |
$ |
14,158 |
$ |
12,975 |
$ |
12,043 |
||||||
|
Peoples Financial Services Corp. | ||||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Sept 30 |
June 30 |
Mar 31 |
Dec 31 |
Sept 30 |
||||||||||||
|
Three months ended |
2016 |
2016 |
2016 |
2015 |
2015 |
|||||||||||
|
Core net income per share: |
||||||||||||||||
|
Net income GAAP |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Adjustments: |
||||||||||||||||
|
Less: Gains on sale of investment securities |
381 |
242 |
210 |
147 |
||||||||||||
|
Add: Gains on sale of investment securities tax adjustment |
133 |
85 |
74 |
51 |
||||||||||||
|
Net income Core |
$ |
5,118 |
$ |
4,607 |
$ |
4,725 |
$ |
3,703 |
$ |
4,313 |
||||||
|
Average common shares outstanding |
7,394,143 |
7,395,127 |
7,403,510 |
7,435,440 |
7,536,824 |
|||||||||||
|
Core net income per share |
$ |
0.69 |
$ |
0.62 |
$ |
0.64 |
$ |
0.50 |
$ |
0.57 |
||||||
|
Tangible book value: |
||||||||||||||||
|
Total stockholders' equity |
$ |
256,440 |
$ |
254,325 |
$ |
251,445 |
$ |
248,768 |
$ |
252,088 |
||||||
|
Less: Goodwill |
63,370 |
63,370 |
63,370 |
63,370 |
63,370 |
|||||||||||
|
Less: Other intangible assets, net |
4,498 |
4,795 |
5,091 |
5,397 |
4,606 |
|||||||||||
|
Total tangible stockholders' equity |
$ |
188,572 |
$ |
186,160 |
$ |
182,984 |
$ |
180,001 |
$ |
184,112 |
||||||
|
Common shares outstanding |
7,394,143 |
7,394,143 |
7,399,298 |
7,410,606 |
7,519,109 |
|||||||||||
|
Tangible book value per share |
$ |
25.50 |
$ |
25.18 |
$ |
24.73 |
$ |
24.29 |
$ |
24.49 |
||||||
|
Core return on average stockholders' equity: |
||||||||||||||||
|
Net income GAAP |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Adjustments: |
||||||||||||||||
|
Less: Gains on sale of investment securities |
381 |
242 |
210 |
147 |
||||||||||||
|
Add: Gains on sale of investment securities tax adjustment |
133 |
85 |
74 |
51 |
||||||||||||
|
Net income Core |
$ |
5,118 |
$ |
4,607 |
$ |
4,725 |
$ |
3,703 |
$ |
4,313 |
||||||
|
Average stockholders' equity |
$ |
256,130 |
$ |
252,785 |
$ |
249,321 |
$ |
248,957 |
$ |
249,917 |
||||||
|
Core return on average stockholders' equity |
7.95 |
% |
7.33 |
% |
7.62 |
% |
5.90 |
% |
6.85 |
% | ||||||
|
Return on average tangible equity: |
||||||||||||||||
|
Net income GAAP |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Average stockholders' equity |
$ |
256,130 |
$ |
252,785 |
$ |
249,321 |
$ |
248,957 |
$ |
249,917 |
||||||
|
Less: average intangibles |
68,017 |
68,313 |
68,614 |
68,372 |
68,124 |
|||||||||||
|
Average tangible stockholders' equity |
$ |
188,113 |
$ |
184,472 |
$ |
180,707 |
$ |
180,585 |
$ |
181,793 |
||||||
|
Return on average tangible stockholders' equity |
10.82 |
% |
10.59 |
% |
10.87 |
% |
8.43 |
% |
9.62 |
% | ||||||
|
Core return on average tangible stockholders' equity: |
||||||||||||||||
|
Net income GAAP |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Adjustments: |
||||||||||||||||
|
Less: Gains on sale of investment securities |
381 |
242 |
210 |
147 |
||||||||||||
|
Add: Gains on sale of investment securities tax adjustment |
133 |
85 |
74 |
51 |
||||||||||||
|
Net income Core |
$ |
5,118 |
$ |
4,607 |
$ |
4,725 |
$ |
3,703 |
$ |
4,313 |
||||||
|
Average stockholders' equity |
$ |
256,130 |
$ |
252,785 |
$ |
249,321 |
$ |
248,957 |
$ |
249,917 |
||||||
|
Less: average intangibles |
68,017 |
68,313 |
68,614 |
68,372 |
68,124 |
|||||||||||
|
Average tangible stockholders' equity |
$ |
188,113 |
$ |
184,472 |
$ |
180,707 |
$ |
180,585 |
$ |
181,793 |
||||||
|
Core return on average tangible stockholders' equity |
10.82 |
% |
10.05 |
% |
10.52 |
% |
8.14 |
% |
9.41 |
% | ||||||
|
Core return on average assets: |
||||||||||||||||
|
Net income GAAP |
$ |
5,118 |
$ |
4,855 |
$ |
4,882 |
$ |
3,839 |
$ |
4,409 |
||||||
|
Adjustments: |
||||||||||||||||
|
Less: Gains on sale of investment securities |
381 |
242 |
210 |
147 |
||||||||||||
|
Add: Gains on sale of investment securities tax adjustment |
133 |
85 |
74 |
51 |
||||||||||||
|
Net income Core |
$ |
5,118 |
$ |
4,607 |
$ |
4,725 |
$ |
3,703 |
$ |
4,313 |
||||||
|
Average assets |
$ |
1,942,395 |
$ |
1,892,702 |
$ |
1,851,643 |
$ |
1,787,150 |
$ |
1,752,510 |
||||||
|
Core return on average assets |
1.05 |
% |
0.98 |
% |
1.03 |
% |
0.82 |
% |
0.98 |
% | ||||||
|
Peoples Financial Services Corp. | |||||||
|
Reconciliation of Non-GAAP Financial Measures | |||||||
|
(In thousands, except per share data) | |||||||
|
Sept 30 |
Sept 30 |
||||||
|
Nine Months Ended |
2016 |
2015 |
|||||
|
Core net income per share: |
|||||||
|
Net income GAAP |
$ |
14,855 |
$ |
13,884 |
|||
|
Adjustments: |
|||||||
|
Less: Gains on sale of investment securities |
623 |
979 |
|||||
|
Add: Gains on sale of investment securities tax adjustment |
218 |
343 |
|||||
|
Net income Core |
$ |
14,450 |
$ |
13,248 |
|||
|
Average common shares outstanding |
7,397,581 |
7,543,751 |
|||||
|
Core net income per share |
$ |
1.95 |
$ |
1.76 |
|||
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SOURCE Peoples Financial Services Corp.