Attached files
| file | filename |
|---|---|
| 8-K - 8-K - PEOPLES FINANCIAL SERVICES CORP. | f8-k.htm |
Exhibit 99.1
NEWS RELEASE
TO BUSINESS EDITOR:
PEOPLES FINANCIAL SERVICES CORP. Reports Fourth Quarter 2017 Earnings
Scranton, PA, February 2, 2018/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 twelve months ended December 31, 2017. Peoples reported net income of $2.7 million, or $0.36 per share for the fourth quarter of 2017, compared to $4.7 million, or $0.64 per share for the comparable period of 2016.
Net income for the twelve months ended December 31, 2017, totaled $18.5 million or $2.50 per share compared to $19.6 million or $2.65 per share for the same period last year.
On December 22, 2017, President Donald Trump signed into law H.R. 1, also known as the Tax Cuts and Jobs Act, which among other things reduced the federal corporate income tax rate to 21% effective January 1, 2018. As a result, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company concluded that its deferred tax assets, net had to be revalued. The Company’s deferred tax assets, net represents expected corporate tax benefits anticipated to be realized in the future. The reduction in the federal corporate income tax rate reduces these anticipated future benefits. The revaluation of the Company’s deferred tax assets, net at December 31, 2017 resulted in a reduction of these net assets and a corresponding increase in income tax expense of $2.6 million or $0.35 per share, which was recorded in the fourth quarter of 2017.
In addition to evaluating its results of operations in accordance with 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 included herein contain items, which Peoples considers non-core, namely gains on sales of investment securities available-for-sale, gains on the sale of our merchant services portfolio and the non-recurring tax provision related to the Tax Cuts and Jobs Act of 2017. 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.
Core net income, which excludes the $2.6 million non-recurring charge to tax expense related to the revaluation of our deferred tax assets, for the three months ended December 31, 2017, was $5.3 million or $0.71 per share, an increase of $0.6 million or 11.5% from $4.7 million for the same period in 2016. The results in the fourth quarter of 2016 did not include any items considered non-core.
Core net income, which we have defined to exclude gains on the sale of investment securities available-for-sale, the gain on the sale of our merchant services portfolio, net of tax, and the non-recurring charge to income tax expense related to the revaluation of our deferred tax assets, for the twelve months ended December 31, totaled $19.8 million and $19.2 million in 2017 and 2016, respectively. Core net income per share for the twelve months ended December 31, 2017 was $2.67, an increase from $2.59 for the same period in 2016. The results in 2017 include a gain on the sale of our merchant services portfolio of $2.3 million and a charge to income tax expense of $2.6 million for the revaluing of our deferred tax assets, net, while the results for 2016 include net gains on the sale of investment securities of $623 thousand.
NOTABLES
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· |
Loans, net growth of $60.6 million in the fourth quarter of 2017 (14.7% annualized rate), with total growth during 2017 of $160.1 million, or 10.4%. |
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· |
Deposit growth of $31.2 million in the fourth quarter of 2017 (7.3% annualized rate), with total deposit growth during 2017 of $130.3 million or 8.2%. |
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· |
Book value per share improved to $35.82 at December 31, 2017 from $34.71 at December 31, 2016. |
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· |
Tangible book value per share improved to $26.83 at December 31, 2017 from $25.57 at December 31, 2016. |
1
|
· |
Tax-equivalent net interest income increased to $17.8 million for the fourth quarter of 2017 compared to $17.5 million for the third quarter of 2017, and $16.6 million for the fourth quarter of 2016. |
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· |
Tax-equivalent net interest margin decreased 10 basis points in the fourth quarter of 2017 to 3.63%, compared to 3.73% for the quarter ended September 30, 2017 and decreased four basis points compared to 3.67% for the quarter ended December 31, 2016. |
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· |
Nonperforming assets to loans, net, and foreclosed assets decreased to 0.68% at December 31, 2017, from 0.83% at September 30, 2017 and 0.93% at December 31, 2016. |
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· |
The allowance for loan losses to loans, net was 1.12 % at December 31, 2017, an increase from 1.04% at December 31, 2016. |
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· |
With the passage of “H.R.1.”, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”), we took a non-recurring charge to income tax expense of $2.6 million due to the revaluation of our deferred tax assets, net in the fourth quarter of 2017. The Tax Act, among other items, reduces the federal corporate income tax rate from 35% to 21% commencing in 2018. |
INCOME STATEMENT REVIEW
The tax-equivalent net interest margin for the three and twelve months ended December 31, were 3.63% and 3.69% respectively in 2017, compared to 3.67% and 3.77% for the same periods in 2016.
Tax-equivalent net interest income for the twelve months ended December 31, increased $5.1 million to $77.6 million in 2017 from $72.5 million in 2016. The increase in tax equivalent net interest income was primarily due to a $135.9 million increase in average earning assets for the twelve months ended December 31, 2017 when compared to the same period in 2016. The tax-equivalent yield on the loan portfolio decreased to 4.39% for the twelve months ended December 31, 2017 compared to 4.43% for the comparable period in 2016. Loans, net averaged $1.6 billion for the twelve months ended December 31, 2017 and $1.5 billion for the comparable period in 2016. For the twelve months ended December 31, the tax-equivalent yield on total investments decreased to 2.84% in 2017 from 2.89% in 2016. Average investments totaled $272.4 million in 2017 and $271.3 million in 2016. Average interest-bearing liabilities increased $104.2 million for the twelve months ended December 31, 2017, compared to the corresponding period last year. The cost of funds, which represents our average rate paid on total interest-bearing liabilities, increased to 0.61% in the twelve months ended December 31, 2017 from 0.55% for the same period of 2016.
The provision for loan losses totaled $4.8 million for the twelve months ended December 31, 2017 and $5.0 million for the twelve months ended December 31, 2016. For the quarter ended December 31, the provision for loan losses was $1.2 million in 2017 and $1.4 million in 2016.
For the twelve months ended December 31, noninterest income totaled $17.2 million in 2017, an increase from $15.9 million in 2016. The gain on sale of our merchant services portfolio was $2.3 million in 2017 compared to the same period in 2016 when we recognized gains of $623 thousand from the sale of available-for-sale investment securities. Increases in service charges, fees and commissions, income from fiduciary activities and wealth management services more than offset decreases in income generated from merchant services, income from mortgage banking activities and life insurance investment income. For the three months ended December 31, 2017 and 2016, noninterest income totaled $3.4 million and $3.9 million, respectively. The decrease was primarily due to lower merchant services income in the current period due to the sale of our merchant business in the second quarter of 2017 as well as lower revenues generated from mortgage banking activities and life insurance investment income. Offsetting the decrease was higher service charges, fees and commissions, income from fiduciary activities and wealth management services.
Noninterest expense increased $3.3 million or 6.8% to $51.3 million for the twelve months ended December 31, 2017, from $48.0 million for the twelve months ended December 31, 2016. Salaries and employee benefits increased $4.2 million or 18.9% due to merit increases and continued investment in our expansion markets in the Lehigh Valley and King of Prussia. Partially offsetting the increase in salaries, merchant services related expenses decreased $1.2 million for the twelve months ended December 31, 2017 due to the sale of our merchant business in the second quarter of 2017. For the fourth quarter of 2017, noninterest expense increased to $12.5 million from $12.3 million for the same period in 2016, an increase of $173 thousand or 1.4%. Salaries and employee benefits were the key driver increasing to $6.8 million in the fourth quarter of 2017 compared to $5.7 million for the comparable period in 2016, an increase of $1.1 million or 19.0%. As with the results for the twelve months ended December 31, 2017, the buildout of our
2
expansion plan led to the increases in salaries and employee benefit expense. Partially offsetting the increase to salaries and benefits was a decrease of $711 thousand or 98.3% in merchant services expense due to the sale of our merchant services portfolio during the second quarter of 2017.
BALANCE SHEET REVIEW
At December 31, 2017, total assets, loans and deposits were $2.2 billion, $1.7 billion and $1.7 billion, respectively. Loans, net grew $160.1 million or 10.4% from December 31, 2016 to December 31, 2017. Total deposits grew $130.3 million or 8.2% from December 31, 2016 to December 31, 2017. Noninterest bearing deposits increased $27.1 million or 7.7% while interest-bearing deposits increased $103.2 million or 8.4% in 2017. Total investments were $281.8 million at December 31, 2017, including $272.5 million securities classified as available-for-sale and $9.3 million classified as held-to-maturity.
Stockholders’ equity equaled $265.0 million or $35.82 per share at December 31, 2017, and $256.6 million or $34.71 per share at December 31, 2016. Tangible stockholders’ equity improved to $26.83 per share at December 31, 2017, from $25.57 per share at December 31, 2016. Dividends declared for the twelve months ended December 31, 2017 amounted to $1.26 per share representing a dividend payout ratio of 50.4%.
ASSET QUALITY REVIEW
Nonperforming assets were $11.6 million or 0.68% of loans, net and foreclosed assets at December 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 $19.0 million or 1.12% of loans, net at December 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 twelve months ended December 31, 2017, equaled $1.8 million or 0.11% of average loans, compared to $2.0 million or 0.14% 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 27 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.
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SOURCE: Peoples Financial Services Corp. |
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/Contact: |
MEDIA/INVESTORS, Marie L. Luciani, Investor Relations Officer, 570.346.7741 or marie.luciani@psbt.com |
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Co: |
Peoples Financial Services Corp. |
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St: |
Pennsylvania |
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In: |
Fin |
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
3
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]
4
Summary Data
Peoples Financial Services Corp.
Five Quarter Trend
(In thousands, except share and per share data)
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Dec 31 |
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Sept 30 |
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June 30 |
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Mar 31 |
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Dec 31 |
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2017 |
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2017 |
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2017 |
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2017 |
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2016 |
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Key performance data: |
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|
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|
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Per share data: |
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|
|
|
|
|
|
|
|
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|
|
|
|
|
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Net income |
|
$ |
0.36 |
|
$ |
0.72 |
|
$ |
0.77 |
|
$ |
0.65 |
|
$ |
0.64 |
|
|
Core net income (1) |
|
$ |
0.71 |
|
$ |
0.72 |
|
$ |
0.59 |
|
$ |
0.65 |
|
$ |
0.64 |
|
|
Cash dividends declared |
|
$ |
0.32 |
|
$ |
0.32 |
|
$ |
0.31 |
|
$ |
0.31 |
|
$ |
0.31 |
|
|
Book value |
|
$ |
35.82 |
|
$ |
36.00 |
|
$ |
35.63 |
|
$ |
35.07 |
|
$ |
34.71 |
|
|
Tangible book value (1) |
|
$ |
26.83 |
|
$ |
26.97 |
|
$ |
26.56 |
|
$ |
25.97 |
|
$ |
25.57 |
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Market value: |
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|
|
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|
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High |
|
$ |
51.06 |
|
$ |
49.00 |
|
$ |
45.73 |
|
$ |
49.57 |
|
$ |
50.54 |
|
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Low |
|
$ |
44.04 |
|
$ |
39.25 |
|
$ |
39.25 |
|
$ |
39.66 |
|
$ |
38.41 |
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Closing |
|
$ |
46.58 |
|
$ |
47.80 |
|
$ |
43.73 |
|
$ |
41.80 |
|
$ |
48.70 |
|
|
Market capitalization |
|
$ |
344,529 |
|
$ |
353,553 |
|
$ |
323,434 |
|
$ |
309,075 |
|
$ |
360,095 |
|
|
Common shares outstanding |
|
|
7,396,505 |
|
|
7,396,505 |
|
|
7,396,163 |
|
|
7,394,143 |
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|
7,394,143 |
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Selected ratios: |
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Return on average stockholders’ equity |
|
|
3.92 |
% |
|
8.00 |
% |
|
8.71 |
% |
|
7.51 |
% |
|
7.29 |
% |
|
Core return on average stockholders’ equity (1) |
|
|
7.81 |
% |
|
8.00 |
% |
|
6.70 |
% |
|
7.51 |
% |
|
7.29 |
% |
|
Return on average tangible stockholders’ equity |
|
|
5.22 |
% |
|
10.70 |
% |
|
11.73 |
% |
|
10.15 |
% |
|
9.88 |
% |
|
Core return on average tangible stockholders’ equity (1) |
|
|
10.39 |
% |
|
10.70 |
% |
|
9.03 |
% |
|
10.15 |
% |
|
9.88 |
% |
|
Return on average assets |
|
|
0.49 |
% |
|
1.03 |
% |
|
1.11 |
% |
|
0.97 |
% |
|
0.94 |
% |
|
Core return on average assets (1) |
|
|
0.98 |
% |
|
1.03 |
% |
|
0.85 |
% |
|
0.97 |
% |
|
0.94 |
% |
|
Stockholders’ equity to total assets |
|
|
12.21 |
% |
|
12.73 |
% |
|
12.76 |
% |
|
12.82 |
% |
|
12.83 |
% |
|
Efficiency ratio (2) |
|
|
57.81 |
% |
|
57.81 |
% |
|
63.95 |
% |
|
59.13 |
% |
|
58.59 |
% |
|
Nonperforming assets to loans, net, and foreclosed assets |
|
|
0.68 |
% |
|
0.83 |
% |
|
0.73 |
% |
|
0.78 |
% |
|
0.93 |
% |
|
Net charge-offs to average loans, net |
|
|
0.26 |
% |
|
0.04 |
% |
|
0.09 |
% |
|
0.05 |
% |
|
0.30 |
% |
|
Allowance for loan losses to loans, net |
|
|
1.12 |
% |
|
1.15 |
% |
|
1.11 |
% |
|
1.09 |
% |
|
1.04 |
% |
|
Interest-bearing assets yield (FTE) (3) |
|
|
4.13 |
% |
|
4.19 |
% |
|
4.14 |
% |
|
4.17 |
% |
|
4.10 |
% |
|
Cost of funds |
|
|
0.66 |
% |
|
0.61 |
% |
|
0.60 |
% |
|
0.57 |
% |
|
0.56 |
% |
|
Net interest spread (FTE) (3) |
|
|
3.47 |
% |
|
3.58 |
% |
|
3.54 |
% |
|
3.60 |
% |
|
3.54 |
% |
|
Net interest margin (FTE) (3) |
|
|
3.63 |
% |
|
3.73 |
% |
|
3.68 |
% |
|
3.73 |
% |
|
3.67 |
% |
|
(1) |
See Reconciliation of Non-GAAP financial measures. |
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(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. |
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(3) |
Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 35%. |
5
Peoples Financial Services Corp.
Consolidated Statements of Income
(In thousands, except per share data)
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Dec 31 |
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Dec 31 |
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Year Ended |
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2017 |
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2016 |
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Interest income: |
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|
|
|
|
|
|
|
Interest and fees on loans: |
|
|
|
|
|
|
|
|
Taxable |
|
$ |
64,946 |
|
$ |
59,902 |
|
|
Tax-exempt |
|
|
3,163 |
|
|
3,031 |
|
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
2,949 |
|
|
2,515 |
|
|
Tax-exempt |
|
|
2,999 |
|
|
3,438 |
|
|
Dividends |
|
|
52 |
|
|
48 |
|
|
Interest on interest-bearing deposits in other banks |
|
|
133 |
|
|
50 |
|
|
Interest on federal funds sold |
|
|
|
|
|
|
|
|
Total interest income |
|
|
74,242 |
|
|
68,984 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
6,450 |
|
|
5,429 |
|
|
Interest on short-term borrowings |
|
|
900 |
|
|
402 |
|
|
Interest on long-term debt |
|
|
1,348 |
|
|
1,420 |
|
|
Total interest expense |
|
|
8,698 |
|
|
7,251 |
|
|
Net interest income |
|
|
65,544 |
|
|
61,733 |
|
|
Provision for loan losses |
|
|
4,800 |
|
|
5,000 |
|
|
Net interest income after provision for loan losses |
|
|
60,744 |
|
|
56,733 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
Service charges, fees, commissions |
|
|
7,344 |
|
|
6,116 |
|
|
Merchant services income |
|
|
2,543 |
|
|
4,199 |
|
|
Commissions and fees on fiduciary activities |
|
|
2,057 |
|
|
1,976 |
|
|
Wealth management income |
|
|
1,411 |
|
|
1,298 |
|
|
Mortgage banking income |
|
|
784 |
|
|
885 |
|
|
Life insurance investment income |
|
|
769 |
|
|
791 |
|
|
Net gains on sale of investment securities available-for-sale |
|
|
|
|
|
623 |
|
|
Net gains on sale of merchant services business |
|
|
2,278 |
|
|
|
|
|
Total noninterest income |
|
|
17,186 |
|
|
15,888 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits expense |
|
|
26,670 |
|
|
22,434 |
|
|
Net occupancy and equipment expense |
|
|
9,975 |
|
|
9,422 |
|
|
Merchant services expense |
|
|
1,808 |
|
|
2,993 |
|
|
Amortization of intangible assets |
|
|
1,034 |
|
|
1,186 |
|
|
Other expenses |
|
|
11,806 |
|
|
11,995 |
|
|
Total noninterest expense |
|
|
51,293 |
|
|
48,030 |
|
|
Income before income taxes |
|
|
26,637 |
|
|
24,591 |
|
|
Provision for income tax expense |
|
|
8,180 |
|
|
5,008 |
|
|
Net income |
|
$ |
18,457 |
|
$ |
19,583 |
|
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Unrealized loss on investment securities available-for-sale |
|
$ |
(1,790) |
|
$ |
(3,417) |
|
|
Reclassification adjustment for gains included in net income |
|
|
|
|
|
(623) |
|
|
Change in pension liability |
|
|
318 |
|
|
917 |
|
|
Income tax expense related to other comprehensive income |
|
|
(515) |
|
|
(1,093) |
|
|
Reclassification related to tax reform legislation (4) |
|
|
(1,101) |
|
|
|
|
|
Other comprehensive loss, net of income taxes |
|
|
(2,058) |
|
|
(2,030) |
|
|
Comprehensive income |
|
$ |
16,399 |
|
$ |
17,553 |
|
|
Per share data: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2.50 |
|
$ |
2.65 |
|
|
Cash dividends declared |
|
$ |
1.26 |
|
$ |
1.24 |
|
|
Average common shares outstanding |
|
|
7,395,837 |
|
|
7,396,716 |
|
|
(4) |
Based on proposed guidance from the Financial Accounting Standards Board. |
6
Peoples Financial Services Corp.
Consolidated Statements of Income
(In thousands, except per share data)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
Three months ended |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
16,925 |
|
$ |
16,535 |
|
$ |
15,945 |
|
$ |
15,541 |
|
$ |
15,502 |
|
|
Tax-exempt |
|
|
829 |
|
|
813 |
|
|
795 |
|
|
726 |
|
|
730 |
|
|
Interest and dividends on investment securities available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
819 |
|
|
714 |
|
|
719 |
|
|
697 |
|
|
636 |
|
|
Tax-exempt |
|
|
737 |
|
|
716 |
|
|
752 |
|
|
794 |
|
|
827 |
|
|
Dividends |
|
|
15 |
|
|
13 |
|
|
12 |
|
|
12 |
|
|
17 |
|
|
Interest on interest-bearing deposits in other banks |
|
|
26 |
|
|
40 |
|
|
38 |
|
|
29 |
|
|
3 |
|
|
Total interest income |
|
|
19,351 |
|
|
18,831 |
|
|
18,261 |
|
|
17,799 |
|
|
17,715 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
1,833 |
|
|
1,654 |
|
|
1,529 |
|
|
1,434 |
|
|
1,468 |
|
|
Interest on short-term borrowings |
|
|
301 |
|
|
177 |
|
|
248 |
|
|
174 |
|
|
120 |
|
|
Interest on long-term debt |
|
|
307 |
|
|
344 |
|
|
349 |
|
|
348 |
|
|
353 |
|
|
Total interest expense |
|
|
2,441 |
|
|
2,175 |
|
|
2,126 |
|
|
1,956 |
|
|
1,941 |
|
|
Net interest income |
|
|
16,910 |
|
|
16,656 |
|
|
16,135 |
|
|
15,843 |
|
|
15,774 |
|
|
Provision for loan losses |
|
|
1,200 |
|
|
1,200 |
|
|
1,200 |
|
|
1,200 |
|
|
1,400 |
|
|
Net interest income after provision for loan losses |
|
|
15,710 |
|
|
15,456 |
|
|
14,935 |
|
|
14,643 |
|
|
14,374 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, fees, commissions |
|
|
1,934 |
|
|
2,156 |
|
|
1,682 |
|
|
1,572 |
|
|
1,603 |
|
|
Merchant services income |
|
|
185 |
|
|
165 |
|
|
1,178 |
|
|
1,015 |
|
|
990 |
|
|
Commissions and fees on fiduciary activities |
|
|
515 |
|
|
540 |
|
|
494 |
|
|
508 |
|
|
481 |
|
|
Wealth management income |
|
|
330 |
|
|
414 |
|
|
348 |
|
|
319 |
|
|
319 |
|
|
Mortgage banking income |
|
|
208 |
|
|
193 |
|
|
204 |
|
|
179 |
|
|
269 |
|
|
Life insurance investment income |
|
|
192 |
|
|
193 |
|
|
195 |
|
|
189 |
|
|
197 |
|
|
Net gains on sale of investment securities available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on sale of merchant services business |
|
|
|
|
|
|
|
|
2,278 |
|
|
|
|
|
|
|
|
Total noninterest income |
|
|
3,364 |
|
|
3,661 |
|
|
6,379 |
|
|
3,782 |
|
|
3,859 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits expense |
|
|
6,819 |
|
|
6,550 |
|
|
7,026 |
|
|
6,275 |
|
|
5,732 |
|
|
Net occupancy and equipment expense |
|
|
2,648 |
|
|
2,483 |
|
|
2,450 |
|
|
2,394 |
|
|
2,424 |
|
|
Merchant services expense |
|
|
12 |
|
|
33 |
|
|
1,033 |
|
|
730 |
|
|
723 |
|
|
Amortization of intangible assets |
|
|
249 |
|
|
259 |
|
|
258 |
|
|
268 |
|
|
287 |
|
|
Other expenses |
|
|
2,727 |
|
|
3,155 |
|
|
3,235 |
|
|
2,689 |
|
|
3,116 |
|
|
Total noninterest expense |
|
|
12,455 |
|
|
12,480 |
|
|
14,002 |
|
|
12,356 |
|
|
12,282 |
|
|
Income before income taxes |
|
|
6,619 |
|
|
6,637 |
|
|
7,312 |
|
|
6,069 |
|
|
5,951 |
|
|
Income tax expense |
|
|
3,971 |
|
|
1,287 |
|
|
1,653 |
|
|
1,269 |
|
|
1,223 |
|
|
Net income |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Other comprehensive (loss) income : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (losses) gains on investment securities available-for-sale |
|
$ |
(2,866) |
|
$ |
(381) |
|
$ |
1,184 |
|
$ |
273 |
|
$ |
(4,420) |
|
|
Reclassification adjustment for gains included in net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in pension liability |
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
917 |
|
|
Income tax (benefit) expense related to other comprehensive income (loss) |
|
|
(892) |
|
|
(133) |
|
|
414 |
|
|
96 |
|
|
(1,226) |
|
|
Reclassification related to tax reform legislation (5) |
|
|
(1,101) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income, net of income taxes |
|
|
(2,757) |
|
|
(248) |
|
|
770 |
|
|
177 |
|
|
(2,277) |
|
|
Comprehensive income |
|
$ |
(109) |
|
$ |
5,102 |
|
$ |
6,429 |
|
$ |
4,977 |
|
$ |
2,451 |
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
0.36 |
|
$ |
0.72 |
|
$ |
0.77 |
|
$ |
0.65 |
|
$ |
0.64 |
|
|
Cash dividends declared |
|
$ |
0.32 |
|
$ |
0.32 |
|
$ |
0.31 |
|
$ |
0.31 |
|
$ |
0.31 |
|
|
Average common shares outstanding |
|
|
7,396,505 |
|
|
7,396,505 |
|
|
7,396,163 |
|
|
7,394,143 |
|
|
7,394,143 |
|
|
(5) |
Based on proposed guidance from the Financial Accounting Standards Board. |
7
Peoples Financial Services Corp.
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
Three months ended |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
Net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
16,925 |
|
$ |
16,535 |
|
$ |
15,945 |
|
$ |
15,541 |
|
$ |
15,502 |
|
|
Tax-exempt |
|
|
1,274 |
|
|
1,250 |
|
|
1,223 |
|
|
1,117 |
|
|
1,123 |
|
|
Total loans, net |
|
|
18,199 |
|
|
17,785 |
|
|
17,168 |
|
|
16,658 |
|
|
16,625 |
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
859 |
|
|
766 |
|
|
768 |
|
|
709 |
|
|
653 |
|
|
Tax-exempt |
|
|
1,132 |
|
|
1,102 |
|
|
1,156 |
|
|
1,222 |
|
|
1,272 |
|
|
Total investments |
|
|
1,991 |
|
|
1,868 |
|
|
1,924 |
|
|
1,931 |
|
|
1,925 |
|
|
Interest on interest-bearing balances in other banks |
|
|
2 |
|
|
1 |
|
|
1 |
|
|
29 |
|
|
3 |
|
|
Federal funds sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
20,192 |
|
|
19,654 |
|
|
19,093 |
|
|
18,618 |
|
|
18,553 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,833 |
|
|
1,654 |
|
|
1,529 |
|
|
1,434 |
|
|
1,468 |
|
|
Short-term borrowings |
|
|
301 |
|
|
177 |
|
|
248 |
|
|
174 |
|
|
120 |
|
|
Long-term debt |
|
|
307 |
|
|
344 |
|
|
349 |
|
|
348 |
|
|
353 |
|
|
Total interest expense |
|
|
2,441 |
|
|
2,175 |
|
|
2,126 |
|
|
1,956 |
|
|
1,941 |
|
|
Net interest income |
|
$ |
17,751 |
|
$ |
17,479 |
|
$ |
16,967 |
|
$ |
16,662 |
|
$ |
16,612 |
|
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
4.36 |
% |
|
4.43 |
% |
|
4.37 |
% |
|
4.41 |
% |
|
4.33 |
% |
|
Tax-exempt |
|
|
4.36 |
% |
|
4.33 |
% |
|
4.29 |
% |
|
4.30 |
% |
|
4.25 |
% |
|
Total loans, net |
|
|
4.36 |
% |
|
4.42 |
% |
|
4.36 |
% |
|
4.40 |
% |
|
4.33 |
% |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2.01 |
% |
|
1.93 |
% |
|
1.93 |
% |
|
1.87 |
% |
|
1.72 |
% |
|
Tax-exempt |
|
|
4.08 |
% |
|
4.09 |
% |
|
4.17 |
% |
|
4.30 |
% |
|
4.22 |
% |
|
Total investments |
|
|
2.82 |
% |
|
2.81 |
% |
|
2.85 |
% |
|
2.89 |
% |
|
2.83 |
% |
|
Interest-bearing balances with banks |
|
|
0.74 |
% |
|
1.46 |
% |
|
1.31 |
% |
|
1.16 |
% |
|
3.58 |
% |
|
Federal funds sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing assets |
|
|
4.13 |
% |
|
4.19 |
% |
|
4.14 |
% |
|
4.17 |
% |
|
4.10 |
% |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
0.54 |
% |
|
0.50 |
% |
|
0.48 |
% |
|
0.47 |
% |
|
0.47 |
% |
|
Short-term borrowings |
|
|
1.43 |
% |
|
1.30 |
% |
|
1.13 |
% |
|
0.86 |
% |
|
0.63 |
% |
|
Long-term debt |
|
|
2.44 |
% |
|
2.43 |
% |
|
2.44 |
% |
|
2.44 |
% |
|
2.40 |
% |
|
Total interest-bearing liabilities |
|
|
0.66 |
% |
|
0.61 |
% |
|
0.60 |
% |
|
0.57 |
% |
|
0.56 |
% |
|
Net interest spread |
|
|
3.47 |
% |
|
3.58 |
% |
|
3.54 |
% |
|
3.60 |
% |
|
3.54 |
% |
|
Net interest margin |
|
|
3.63 |
% |
|
3.73 |
% |
|
3.68 |
% |
|
3.73 |
% |
|
3.67 |
% |
8
Peoples Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
At period end |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
36,336 |
|
$ |
31,839 |
|
$ |
41,026 |
|
$ |
31,511 |
|
$ |
39,496 |
|
|
Interest-bearing balances in other banks |
|
|
1,152 |
|
|
1,067 |
|
|
375 |
|
|
304 |
|
|
445 |
|
|
Federal funds sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
272,548 |
|
|
259,138 |
|
|
256,774 |
|
|
264,644 |
|
|
259,410 |
|
|
Held-to-maturity |
|
|
9,274 |
|
|
9,564 |
|
|
9,868 |
|
|
10,180 |
|
|
10,517 |
|
|
Total investments |
|
|
281,822 |
|
|
268,702 |
|
|
266,642 |
|
|
274,824 |
|
|
269,927 |
|
|
Loans held for sale |
|
|
106 |
|
|
460 |
|
|
|
|
|
444 |
|
|
|
|
|
Loans, net |
|
|
1,693,065 |
|
|
1,632,515 |
|
|
1,597,362 |
|
|
1,559,867 |
|
|
1,532,965 |
|
|
Less: allowance for loan losses |
|
|
18,960 |
|
|
18,831 |
|
|
17,802 |
|
|
16,969 |
|
|
15,961 |
|
|
Net loans |
|
|
1,674,105 |
|
|
1,613,684 |
|
|
1,579,560 |
|
|
1,542,898 |
|
|
1,517,004 |
|
|
Premises and equipment, net |
|
|
37,557 |
|
|
37,373 |
|
|
35,892 |
|
|
34,967 |
|
|
33,260 |
|
|
Accrued interest receivable |
|
|
6,936 |
|
|
5,908 |
|
|
6,206 |
|
|
5,604 |
|
|
6,228 |
|
|
Goodwill |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
Other intangible assets, net |
|
|
3,178 |
|
|
3,427 |
|
|
3,685 |
|
|
3,944 |
|
|
4,211 |
|
|
Other assets |
|
|
65,712 |
|
|
66,406 |
|
|
68,002 |
|
|
65,640 |
|
|
65,501 |
|
|
Total assets |
|
$ |
2,170,274 |
|
$ |
2,092,236 |
|
$ |
2,064,758 |
|
$ |
2,023,506 |
|
$ |
1,999,442 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
380,729 |
|
$ |
372,146 |
|
$ |
356,435 |
|
$ |
358,538 |
|
$ |
353,686 |
|
|
Interest-bearing |
|
|
1,338,289 |
|
|
1,315,709 |
|
|
1,282,998 |
|
|
1,257,006 |
|
|
1,235,071 |
|
|
Total deposits |
|
|
1,719,018 |
|
|
1,687,855 |
|
|
1,639,433 |
|
|
1,615,544 |
|
|
1,588,757 |
|
|
Short-term borrowings |
|
|
123,675 |
|
|
71,900 |
|
|
91,500 |
|
|
77,475 |
|
|
82,700 |
|
|
Long-term debt |
|
|
49,734 |
|
|
50,199 |
|
|
57,160 |
|
|
57,615 |
|
|
58,134 |
|
|
Accrued interest payable |
|
|
497 |
|
|
481 |
|
|
431 |
|
|
457 |
|
|
462 |
|
|
Other liabilities |
|
|
12,374 |
|
|
15,505 |
|
|
12,725 |
|
|
13,096 |
|
|
12,771 |
|
|
Total liabilities |
|
|
1,905,298 |
|
|
1,825,940 |
|
|
1,801,249 |
|
|
1,764,187 |
|
|
1,742,824 |
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
14,793 |
|
|
14,793 |
|
|
14,792 |
|
|
14,788 |
|
|
14,788 |
|
|
Capital surplus |
|
|
135,043 |
|
|
134,988 |
|
|
134,937 |
|
|
134,888 |
|
|
134,871 |
|
|
Retained earnings |
|
|
121,353 |
|
|
119,971 |
|
|
116,988 |
|
|
113,621 |
|
|
111,114 |
|
|
Accumulated other comprehensive loss |
|
|
(6,213) |
|
|
(3,456) |
|
|
(3,208) |
|
|
(3,978) |
|
|
(4,155) |
|
|
Total stockholders’ equity |
|
|
264,976 |
|
|
266,296 |
|
|
263,509 |
|
|
259,319 |
|
|
256,618 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,170,274 |
|
$ |
2,092,236 |
|
$ |
2,064,758 |
|
$ |
2,023,506 |
|
$ |
1,999,442 |
|
9
Peoples Financial Services Corp.
Consolidated Balance Sheets
(In thousands)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
Average quarterly balances |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
1,540,356 |
|
$ |
1,482,215 |
|
$ |
1,464,401 |
|
$ |
1,429,323 |
|
$ |
1,422,725 |
|
|
Tax-exempt |
|
|
116,055 |
|
|
114,455 |
|
|
114,287 |
|
|
105,442 |
|
|
105,119 |
|
|
Total loans, net |
|
|
1,656,411 |
|
|
1,596,670 |
|
|
1,578,688 |
|
|
1,534,765 |
|
|
1,527,844 |
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
169,973 |
|
|
157,104 |
|
|
159,841 |
|
|
159,593 |
|
|
150,697 |
|
|
Tax-exempt |
|
|
109,979 |
|
|
106,865 |
|
|
111,061 |
|
|
115,347 |
|
|
119,805 |
|
|
Total investments |
|
|
279,952 |
|
|
263,969 |
|
|
270,902 |
|
|
274,940 |
|
|
270,502 |
|
|
Interest-bearing balances with banks |
|
|
1,069 |
|
|
272 |
|
|
307 |
|
|
349 |
|
|
333 |
|
|
Federal funds sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing assets |
|
|
1,937,432 |
|
|
1,860,911 |
|
|
1,849,897 |
|
|
1,810,054 |
|
|
1,798,679 |
|
|
Other assets |
|
|
195,815 |
|
|
195,773 |
|
|
196,913 |
|
|
194,499 |
|
|
192,266 |
|
|
Total assets |
|
$ |
2,133,247 |
|
$ |
2,056,684 |
|
$ |
2,046,810 |
|
$ |
2,004,553 |
|
$ |
1,990,945 |
|
|
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
|
$ |
1,338,282 |
|
$ |
1,299,661 |
|
$ |
1,270,459 |
|
$ |
1,244,021 |
|
$ |
1,241,586 |
|
|
Noninterest-bearing |
|
|
376,888 |
|
|
366,610 |
|
|
356,282 |
|
|
346,567 |
|
|
341,795 |
|
|
Total deposits |
|
|
1,715,170 |
|
|
1,666,271 |
|
|
1,626,741 |
|
|
1,590,588 |
|
|
1,583,381 |
|
|
Short-term borrowings |
|
|
83,791 |
|
|
54,084 |
|
|
87,739 |
|
|
82,002 |
|
|
75,518 |
|
|
Long-term debt |
|
|
49,949 |
|
|
56,270 |
|
|
57,372 |
|
|
57,856 |
|
|
58,404 |
|
|
Other liabilities |
|
|
16,411 |
|
|
14,820 |
|
|
14,305 |
|
|
14,872 |
|
|
15,616 |
|
|
Total liabilities |
|
|
1,865,321 |
|
|
1,791,445 |
|
|
1,786,157 |
|
|
1,745,318 |
|
|
1,732,919 |
|
|
Stockholders’ equity |
|
|
267,926 |
|
|
265,239 |
|
|
260,653 |
|
|
259,235 |
|
|
258,026 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,133,247 |
|
$ |
2,056,684 |
|
$ |
2,046,810 |
|
$ |
2,004,553 |
|
$ |
1,990,945 |
|
10
Peoples Financial Services Corp.
Asset Quality Data
(In thousands)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
At quarter end |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual/restructured loans |
|
$ |
10,559 |
|
$ |
11,714 |
|
$ |
10,429 |
|
$ |
11,446 |
|
$ |
12,974 |
|
|
Accruing loans past due 90 days or more |
|
|
735 |
|
|
1,509 |
|
|
835 |
|
|
462 |
|
|
844 |
|
|
Foreclosed assets |
|
|
284 |
|
|
358 |
|
|
384 |
|
|
236 |
|
|
393 |
|
|
Total nonperforming assets |
|
$ |
11,578 |
|
$ |
13,581 |
|
$ |
11,648 |
|
$ |
12,144 |
|
$ |
14,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
18,831 |
|
$ |
17,802 |
|
$ |
16,969 |
|
$ |
15,961 |
|
$ |
15,712 |
|
|
Charge-offs |
|
|
1,139 |
|
|
268 |
|
|
431 |
|
|
311 |
|
|
1,358 |
|
|
Recoveries |
|
|
68 |
|
|
97 |
|
|
64 |
|
|
119 |
|
|
207 |
|
|
Provision for loan losses |
|
|
1,200 |
|
|
1,200 |
|
|
1,200 |
|
|
1,200 |
|
|
1,400 |
|
|
Ending balance |
|
$ |
18,960 |
|
$ |
18,831 |
|
$ |
17,802 |
|
$ |
16,969 |
|
$ |
15,961 |
|
11
Peoples Financial Services Corp.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share data)
|
|
|
Dec 31 |
|
Sept 30 |
|
June 30 |
|
Mar 31 |
|
Dec 31 |
|
|||||
|
Three months ended |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|||||
|
Core net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain on sale of merchant services business |
|
|
|
|
|
|
|
|
2,278 |
|
|
|
|
|
|
|
|
Add: Expenses related to sale of merchant services business |
|
|
|
|
|
|
|
|
271 |
|
|
|
|
|
|
|
|
Add: Gain on sale of merchant services business tax adjustment |
|
|
|
|
|
|
|
|
702 |
|
|
|
|
|
|
|
|
Add: Tax expense from the Tax Cuts and Jobs Act of 2017 |
|
|
2,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Core |
|
$ |
5,271 |
|
$ |
5,350 |
|
$ |
4,354 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Average common shares outstanding |
|
|
7,396,505 |
|
|
7,396,505 |
|
|
7,396,163 |
|
|
7,394,143 |
|
|
7,394,143 |
|
|
Core net income per share |
|
$ |
0.71 |
|
$ |
0.72 |
|
$ |
0.59 |
|
$ |
0.65 |
|
$ |
0.64 |
|
|
Tangible book value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
$ |
264,976 |
|
$ |
266,296 |
|
$ |
263,509 |
|
$ |
259,319 |
|
$ |
256,618 |
|
|
Less: Goodwill |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
63,370 |
|
|
Less: Other intangible assets, net |
|
|
3,178 |
|
|
3,427 |
|
|
3,685 |
|
|
3,944 |
|
|
4,211 |
|
|
Total tangible stockholders’ equity |
|
$ |
198,428 |
|
$ |
199,499 |
|
$ |
196,454 |
|
$ |
192,005 |
|
$ |
189,037 |
|
|
Common shares outstanding |
|
|
7,396,505 |
|
|
7,396,505 |
|
|
7,396,163 |
|
|
7,394,143 |
|
|
7,394,143 |
|
|
Tangible book value per share |
|
$ |
26.83 |
|
$ |
26.97 |
|
$ |
26.56 |
|
$ |
25.97 |
|
$ |
25.57 |
|
|
Core return on average stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain on sale of merchant services business |
|
|
|
|
|
|
|
|
2,278 |
|
|
|
|
|
|
|
|
Add: Expenses related to sale of merchant services business |
|
|
|
|
|
|
|
|
271 |
|
|
|
|
|
|
|
|
Add: Gain on sale of merchant services business tax adjustment |
|
|
|
|
|
|
|
|
702 |
|
|
|
|
|
|
|
|
Add: Tax expense from the Tax Cuts and Jobs Act of 2017 |
|
|
2,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Core |
|
$ |
5,271 |
|
$ |
5,350 |
|
$ |
4,354 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Average stockholders’ equity |
|
$ |
267,926 |
|
$ |
265,239 |
|
$ |
260,653 |
|
$ |
259,235 |
|
$ |
258,026 |
|
|
Core return on average stockholders’ equity |
|
|
7.81 |
% |
|
8.00 |
% |
|
6.70 |
% |
|
7.51 |
% |
|
7.29 |
% |
|
Return on average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Average stockholders’ equity |
|
$ |
267,926 |
|
$ |
265,239 |
|
$ |
260,653 |
|
$ |
259,235 |
|
$ |
258,026 |
|
|
Less: average intangibles |
|
|
66,673 |
|
|
66,926 |
|
|
67,185 |
|
|
67,448 |
|
|
67,725 |
|
|
Average tangible stockholders’ equity |
|
$ |
201,253 |
|
$ |
198,313 |
|
$ |
193,468 |
|
$ |
191,787 |
|
$ |
190,301 |
|
|
Return on average tangible stockholders’ equity |
|
|
5.22 |
% |
|
10.70 |
% |
|
11.73 |
% |
|
10.15 |
% |
|
9.88 |
% |
|
Core return on average tangible stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain on sale of merchant services business |
|
|
|
|
|
|
|
|
2,278 |
|
|
|
|
|
|
|
|
Add: Expenses related to sale of merchant services business |
|
|
|
|
|
|
|
|
271 |
|
|
|
|
|
|
|
|
Add: Gain on sale of merchant services business tax adjustment |
|
|
|
|
|
|
|
|
702 |
|
|
|
|
|
|
|
|
Add: Tax expense from the Tax Cuts and Jobs Act of 2017 |
|
|
2,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Core |
|
$ |
5,271 |
|
$ |
5,350 |
|
$ |
4,354 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Average stockholders’ equity |
|
$ |
267,926 |
|
$ |
265,239 |
|
$ |
260,653 |
|
$ |
259,235 |
|
$ |
258,026 |
|
|
Less: average intangibles |
|
|
66,673 |
|
|
66,926 |
|
|
67,185 |
|
|
67,448 |
|
|
67,725 |
|
|
Average tangible stockholders’ equity |
|
$ |
201,253 |
|
$ |
198,313 |
|
$ |
193,468 |
|
$ |
191,787 |
|
$ |
190,301 |
|
|
Core return on average tangible stockholders’ equity |
|
|
10.39 |
% |
|
10.70 |
% |
|
9.03 |
% |
|
10.15 |
% |
|
9.88 |
% |
|
Core return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
2,648 |
|
$ |
5,350 |
|
$ |
5,659 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain on sale of merchant services business |
|
|
|
|
|
|
|
|
2,278 |
|
|
|
|
|
|
|
|
Add: Expenses related to sale of merchant services business |
|
|
|
|
|
|
|
|
271 |
|
|
|
|
|
|
|
|
Add: Gain on sale of merchant services business tax adjustment |
|
|
|
|
|
|
|
|
702 |
|
|
|
|
|
|
|
|
Add: Tax expense from the Tax Cuts and Jobs Act of 2017 |
|
|
2,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income Core |
|
$ |
5,271 |
|
$ |
5,350 |
|
$ |
4,354 |
|
$ |
4,800 |
|
$ |
4,728 |
|
|
Average assets |
|
$ |
2,133,247 |
|
$ |
2,056,684 |
|
$ |
2,046,810 |
|
$ |
2,004,553 |
|
$ |
1,990,945 |
|
|
Core return on average assets |
|
|
0.98 |
% |
|
1.03 |
% |
|
0.85 |
% |
|
0.97 |
% |
|
0.94 |
% |
12
Peoples Financial Services Corp.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share data)
|
|
|
Dec 31 |
|
Dec 31 |
|
||
|
Year Ended |
|
2017 |
|
2016 |
|
||
|
Core net income per share: |
|
|
|
|
|
|
|
|
Net income GAAP |
|
$ |
18,457 |
|
$ |
19,583 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Less: Gain on sale of merchant services business |
|
|
2,278 |
|
|
|
|
|
Less: Gains on sale of investment securities |
|
|
|
|
|
623 |
|
|
Add: Expenses related to sale of merchant services business |
|
|
271 |
|
|
|
|
|
Add: Gain on sale of merchant services business tax adjustment |
|
|
702 |
|
|
|
|
|
Add: Gains on sale of investment securities tax adjustment |
|
|
|
|
|
218 |
|
|
Add: Tax expense from the Tax Cuts and Jobs Act of 2017 |
|
|
2,623 |
|
|
|
|
|
Net income Core |
|
$ |
19,775 |
|
$ |
19,178 |
|
|
Average common shares outstanding |
|
|
7,395,837 |
|
|
7,396,716 |
|
|
Core net income per share |
|
$ |
2.67 |
|
$ |
2.59 |
|
13