Business
PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Second Quarter 2023 Earnings
SCRANTON, Pa., July 25, 2023 /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., July 25, 2023 /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 six months ended June 30, 2023.\n\n \n \n \n \n \n \n\n \nPeoples reported net income of $9.4 million, or $1.31 per diluted share for the three months ended June 30, 2023, a 0.8% increase when compared to $9.4 million, or $1.30 per share for the comparable period of 2022. Quarterly net income included lower net interest income of $1.6 million due to higher funding costs, reduced noninterest income of $0.3 million and higher operating expenses of $1.1 million, offset by a lower provision for credit losses of $3.2 million.\nThe $2.2 million credit to the provision for credit losses in the current period included the impact of various factors such as updated economic assumptions as well as changes in qualitative adjustments, portfolio composition and asset quality. Changes to qualitative factors related to lower loan growth were partially offset by banking industry concerns which resulted in lower expected credit losses. The year ago period included a provision for credit losses of $1.0 million based on our legacy allowance for credit losses methodology and then current conditions.\nFor the six months ended June 30, 2023, net income was $17.0 million, or $2.37 per diluted share, a 10.4% decrease when compared to $19.0 million, or $2.63 per diluted share for the comparable period of 2022. Net interest income for the current period decreased $1.1 million when compared to the six months ended June 30, 2022 as higher interest income due to increased rates was more than offset by increased funding costs. Lower net interest income combined with higher operating expenses of $3.4 million were partially offset by a $2.2 million decrease to the provision for credit losses. \nFINANCIAL HIGHLIGHTS\nNet income for the six months ended June 30, 2023 was $17.0 million or $2.37 per diluted share.Dividends paid during the first six months ended June 30, 2023 totaled $0.82 per share representing a 5.1% increase from the comparable period in 2022.Net loan growth for the six months ended June 30, 2023 was $113.1 million or 8.4% annualized and consisted primarily of commercial real estate loans.Total deposits g...