Peoples Financial Services Corp. · NASDAQ:PFIS
Peoples Financial Services — Q3 2024 Earnings Presentation
22 slides from Peoples Financial Services's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation: 2024 Third Quarter Earnings
Nasdaq: PFIS INVESTOR PRESENTATION 2024 Third Quarter Earnings psbt.com
Slide 2: Cautionary Note About Forward-Looking Statements
Nasdaq: PFIS 2 CAUTIONARY NOTE ABOUT FORWARD - LOOKING STATEMENTS: We make statements in this presentation, and we may from time to time make other statements regarding our outlook or expectat ion s for future financial or operating results and/or other matters regarding or affecting Peoples Financi
Slide 3: Presentation Agenda
Nasdaq: PFIS I. Corporate Profile II. Investor Thesis A. Transformational Strategic Transaction B. Consistently Strong Performance Even During the Great Recession C. Strong Core Deposit Franchise D. Strong Credit Quality E. High Dividend Payer III. Appendix A. Financials B. Asset Quality PRESENTATIO
Slide 4: Corporate Profile as of September 30, 2024
Nasdaq: PFIS Peoples Financial Services Corp. Corporate Profile as of September 30, 2024 • Banking Subsidiary Founded in 1905 • Total Assets: $5.36 billion • Total Deposits: $4.64 billion • Total Loans: $4.07 billion • Listed on NASDAQ under ticker: PFIS • Shares Outstanding: 9,994,648 • Market Cap:
Slide 5: Corporate Profile: Management
Nasdaq: PFIS 5 Corporate Profile Management Craig W. Best CEO & Director Gerard A. Champi President John R. Anderson III EVP & CFO Neal D. Koplin Sr. EVP, Chief Banking Officer Mr . Best has served as the CEO of the Bank since its 2013 merger with Penseco Financial Services Corporation where he serv
Slide 6: Corporate Profile: Management
Nasdaq: PFIS 6 Corporate Profile Management Jeffrey A. Drobins EVP, Chief Lending Officer Amy E. Vieney SVP, Chief Human Resources Officer Mr . Drobins has served as EVP, Chief Lending Officer of the Bank since 2022 . Prior to that, he served as the Lehigh Valley Market President of the Bank . Mr .
Slide 7: Corporate Profile: Market Area
Nasdaq: PFIS • 39 Community branch offices located in twelve counties in Pennsylvania, one county in New Jersey and one county in New York • Corporate headquarters in Scranton, Lackawanna County, Pennsylvania • 7 th Largest bank headquartered in Pennsylvania • Expanded into larger and faster growing
Slide 8: Purchase Accounting Adjustments
Nasdaq: PFIS Actual Close July 1, 2024 Updated as of March 31, 2024 & June 30, 2024 Close $ in millions $(69.1) $(52.6) Loans Fair value marks (4.2) --- Securities (AFS and HTM) (2.4) (1.5) Time deposits (3.1) (2.5) Borrowings/Trust Preferred (14.3) (10.2) Reserve on non - PCD loans CECL Reserves 36
Slide 9: Purchase Accounting Projections
Nasdaq: PFIS 9 Projected Actuals Total Thereafter 2029 2028 2027 2026 2025 4Q24 3Q24 $ thousands 66,160 13,005 3,772 5,339 8,448 11,485 15,055 4,342 4,654 Accretion of loan marks 2,405 0 4 43 134 199 697 494 834 Accretion of CD mark 3,168 1,641 154 150 170 199 484 191 179 Borrowing 60,587 11,364 3,6
Slide 10: Merger Financials
Nasdaq: PFIS Merger Financials Comments Actual Results Updated as of March 31, 2024 & June 30, 2024 Close Metric Total merger consideration based on $45.54 PFIS closing price on June 28, 2024 versus $48.40 at December 31, 2023 $133.7 million $142.5 million Deal Value Consideration Each FNCB share ex
Slide 11: Third Quarter 2024 Results
Nasdaq: PFIS 11 Third Quarter 2024 Results ($ in thousands except per share data) 3Q 2024 2Q 2024 3Q2023 Net Interest Income 39,244$ 18,916$ 21,277$ Provision for (credit to) credit losses 14,458$ 596$ (166)$ Net Income (4,337)$ 3,282$ 6,746$ Earnings per average diluted common share (0.43)$ 0.46$ 0
Slide 12: Income Statement Comparison
Nasdaq: PFIS Income Statement Comparison Financials For the Nine Months Ended September 30, 2024 Financial Results 12 9/30/2024 9/30/2023 ($) (%) (1) Net interest income 77,478$ 66,485$ 10,993$ 16.5% (2) Provision for (credit to) credit losses 15,762 (1,103) 16,865 -1529.0% (3) Net interest income a
Slide 13: Consistent High Performance Even During the Great Recession
Nasdaq: PFIS PFIS Source: Earnings Release, 10K Peer Source: S&P Global Mid - Atlantic: DE, NJ, NY, MD, PA banks $5 - 10 Billion in Assets * Merger of PFIS and PFNS Consistent High Performance Even During the Great Recession 0.00% 0.50% 1.00% 1.50% 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015
Slide 14: Financials: Assets, Loans, Deposits
Nasdaq: PFIS Financials $926 $918 $1,688 $1,742 $1,819 $1,999 $2,169 $2,289 $2,475 $2,884 $3,369 $3,554 $3,742 $5,360 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 09 30 24 Total Assets ($ Million
Slide 15: Net Income, EPS and Return on Tangible Common Equity
Nasdaq: PFIS $17,649 $17,723 $19,583 $18,457 $24,920 $25,736 $29,354 $43,519 $33,917 $38,090 $27,380 $17,411 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2014 2015 2016 2017* 2018 2019 2020 2
Slide 16: Sources of Liquidity at September 30, 2024
Nasdaq: PFIS Sources of Liquidity at September 30, 2024 16 Financials Total Available At September 30, 2024 Total Available Outstanding for Future Liquidity FHLB advances 1,446,345$ 477,617$ 968,728$ Federal Reserve - Discount Window & Bank Term Funding Program 569,771 25,000 544,771 Correspondent b
Slide 17: Peoples Security Bank Capital
Nasdaq: PFIS Peoples Security Bank Capital 17 11.64% 13.74% 13.76% 12.27% 13.01% 10.68% 6.50% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2019 Y 2020 Y 2021 Y 2022 Y 2023 Y 09 30 24 Common Equity Tier 1 Capital to Risk Weighted Assets (%) Common Equity Tier 1 Capital to Risk Weighted A
Slide 18: Asset Quality
Nasdaq: PFIS 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 09 30 24 Net Charge - Offs (NCOs) to Average Loans PFIS PEER Asset Quality PFIS Source: Earnings Release, 10K Peer Source: S&P Global Mid - Atlantic: DE, NJ, NY, MD, PA banks $5 - 10 Billio
Slide 19: Pre-Provision Net Revenue (Non-GAAP Reconciliation)
Nasdaq: PFIS Pre - provision net revenue (PPNR) (non - GAAP reconciliation) 19 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 2024 2024 2024 2023 2023 Pre-provision net revenue to average assets: Income before taxes (GAAP) $ -4,994$ 3,703$ 3,944$ 4,217$ 8,081 Plus: Provision for (credit to) credit losses 14,4
Slide 20: Non-GAAP Reconciliation
Nasdaq: PFIS Non - GAAP Reconciliation 20 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 2024 2024 2024 2023 2023 Core net income per share: Net income GAAP $ -4,337$ 3,282$ 3,466$ 3,630$ 6,746 Adjustments: Add: ACL provision for FNCB acquired legacy loans 14,328 Less: ACL provision for FNCB acquired legacy l
Slide 21: Non-Owner Occupied CRE Loans
Nasdaq: PFIS Non - Owner Occupied CRE Loans (June 30, 2024 – PFIS only) CRE Loans (June 30, 2024 – PFIS only) Classified Balance # of Loans Avg Int Rate % of Total Loans Balance ($millions) Classified Balance # of Loans Avg Int Rate % of Total Loans Balance ($millions) Category 233 5.0% 14.7% $422.0
Slide 22: Loan Portfolio Maturity / Re-Pricing
Nasdaq: PFIS 22 Loan Portfolio Maturity / Re - Pricing* As of June 30, 2024 $34 $25 $117 $142 $251 $209 $106 $39 $529 $160 $23 $86 $126 $238 $115 $103 $16 $131 $- $100 $200 $300 $400 $500 $600 $700 3Q24 4Q24 2025 2026 2027 2028 2029 2030 >2030 Loan Balance (in Millions) Fixed Adjustable $194 $203 $4
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