Business
Peoples Financial Services Corp. Reports Third Quarter 2020 Earnings
SCRANTON, Pa., Nov. 3, 2020 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank
About this update from Peoples Financial Services Corp.
[{"type":"text","content":"SCRANTON, Pa., Nov. 3, 2020 /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, 2020. Peoples reported net income of $8.3 million, or $1.14 per diluted share for the three months ended September 30, 2020, an increase of 16.3% when compared to $7.1 million, or $0.96 per diluted share for the comparable period of 2019. The increase in earnings for the three months ended September 30, 2020 is the product of an increase in pre-provision net interest income of $0.7 million, due primarily to lower funding costs of $1.0 million, higher commercial loan interest rate swap revenue of $0.9 million, and higher gains of $0.5 million on the sale of investment securities. Partially offsetting the increases was a higher provision for loan losses of $0.4 million, resulting from the application of our allowance for loan losses methodology, and higher federal income tax expense of $0.5 million.\n\n \n \n \n \n \n \n\n \nNet income for the nine months ended September 30, 2020, totaled $21.2 million or $2.87 per diluted share, a 2.2% increase when compared to $20.7 million or $2.79 per diluted share for the same period last year. The increase in earnings in the 2020 nine-month period is the result of an increase in our pre-provision net interest income of $3.7 million, or 6.6%, the result of lower funding costs of $2.5 million and higher average earning assets of $294.1 million, an increase of $0.7 million from gains realized on the sale of debt securities, and lower noninterest expenses of $1.1 million. Partially offsetting the increase was a higher provision for loan losses of $4.3 million, primarily due to changes in several qualitative factors included in our allowance for loan losses methodology during the first half of 2020 relating to the impact of COVID-19.\nIn 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 in this release contain items, which Peoples considers non-core, namely gains and losses incurred within the investment se...