Peoples Financial Services Corp. · NASDAQ:PFIS
Peoples Financial Services — Q1 2024 Earnings Presentation
25 slides from Peoples Financial Services's earnings presentation, Jun 20, 2024
Slide 1: First Quarter Earnings Investor Presentation 2024
Nasdaq: PFIS INVESTOR PRESENTATION 2024 First Quarter Earnings psbt.com
Slide 2: Cautionary Note About Forward-Looking Statements
Nasdaq: PFIS 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 expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Ser
Slide 3: Presentation Agenda
Nasdaq: PFIS I. Corporate Profile II. Investor Thesis A. Transformational Strategic Transaction B. Consistently High Performance Even During the Great Recession C. Effective Growth Strategy D. High Dividend Payer III. Appendix A. Financials B. Asset Quality PRESENTATION AGENDA 3
Slide 4: Corporate Profile as of March 31, 2024
Nasdaq: PFIS Peoples Financial Services Corp. Corporate Profile as of March 31, 2024 •Banking Subsidiary Founded in 1905 •Total Assets: $3.67 billion •Total Deposits: $3.20 billion •Total Loans: $2.86 billion •Listed on NASDAQ under ticker: PFIS •Shares Outstanding: 7,057,258 •Market Cap: $304 milli
Slide 5: Corporate Profile: Management
Nasdaq: PFIS 5 Corporate Profile Management Craig W. Best CEO & Director Thomas P. Tulaney President & COO John R. Anderson III EVP & CFO Neal D. Koplin Sr. EVP, Chief Banking Officer Timothy H. Kirtley EVP, CRO & Secretary Susan L. Hubble EVP, CIO Mr. Best has served as the CEO of the Bank since it
Slide 6: Corporate Profile: Management
Nasdaq: PFIS 6 Corporate Profile Management Jeffrey A. Drobins EVP, Chief Lending Officer Amy E. Vieney SVP, Chief Human Resources Officer Mr. Drobins has served as Executive Vice President, Chief Lending Officer of the Bank since October, 2022. Prior to that, he served as the Lehigh Valley Market P
Slide 7: Corporate Profile: Market Area
Nasdaq: PFIS • 28 Community branch offices located in eleven counties in Pennsylvania, one county in New Jersey and one county in New York • Corporate headquarters in Scranton, Lackawanna County, Pennsylvania • 16th Largest bank headquartered in Pennsylvania • Expanded into larger and faster growing
Slide 8: Pennsylvania bank rankings and deposit market share
# Company Assets ($B) 1 First Commonwealth Financial $11.3 2 S&T Bancorp Inc. 9.3 3 Univ est Financial Corp. 7.6 4 CNB Financial Corp. 5.7 Pro Forma Combined 5.5 5 Mid Penn Bancorp Inc. 5.1 6 Peoples Financial Services 3.7 7 Orrstown Financial Serv ices 3.0 8 Citizens Financial Serv ices 2.9 9 Citiz
Slide 9: Pending Merger with FNCB Bancorp, Inc.
Source: Company Documents, Pro forma financials are based on June 30, 2024 estimated closing date and include the impact of purchase accounting adjustments and balance sheet strategies. Pending Merger with FNCB Bancorp, Inc. Pro Forma Key Highlights(1) $5.5 B Assets $2.47 Projected Annual Per Share
Slide 10: 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 $1 - 5 Billion in Assets * Merger of PFIS and PFNS Consistent High Performance Even During the Great Recession 0.00% 1.00% 2.00% 2006 2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016 2017
Slide 11: Effective Growth Strategy (Currently on Hold)
Nasdaq: PFIS Effective Growth Strategy (Currently on Hold) I. Market expansion strategy -Recruit high performing, market respected team -Build brand, one interaction, one employee, one deal, one location at a time -Take advantage of market disruption II. Provide high functioning mobile/digital banki
Slide 12: Expansion market deposits and loans growth
Nasdaq: PFIS $1 $24 $60 $151 $226 $280 $413 $636 $718 $780 $707 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 03 31 24 Millions Expansion Mkt Deposits 12 03 31 24 Lehigh Valley, PA LPO opened in Bethlehem, PA October 2014 Lehigh Valley, PA Branch o
Slide 13: Investor Relations Contacts and Information Sources
Nasdaq: PFIS Investor Relations Contacts and Information Sources INVESTOR SERVICES: •Transfer Agent: Equiniti Trust Company, LLC (800) 937-5449 –Dividend Reinvestment –Direct Deposit –Stock Purchase Plan •Market Makers Griffin Financial Group (757) 955-8444 Janney Montgomery Scott, LLC (215) 665-600
Slide 14: Appendix
i)» Peoples Financial SERVICES CORP. Q APPENDIX Nasdaq: PFIS
Slide 15: Income Statement Comparison
Nasdaq: PFIS Income Statement Comparison Financials For the Three Months Ended March 31, 2024 Financial Results 15 Net Interest Margin 2.29% vs. 2.81% Interest expense $8.5mm higher Lower loan growth/decline in model loss rates Lower swap origination volume Lower FTE’s IT upgrades & facility costs P
Slide 16: Total 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 $3,669 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 03 31 24 Total Assets ($ Millions) Assets $632 $624 $1,177 $1,21
Slide 17: Net Income, Return on Tangible Equity, Efficiency
Nasdaq: PFIS $17,649$17,723 $19,583 $18,457 $24,920 $25,736 $29,354 $43,519 $33,917 $38,090 $27,380 $13,940 $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 20
Slide 18: Tier One Risk Based Capital Ratio
Nasdaq: PFIS 8% 10% 12% 14% 16% 18% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Tier One Risk Based Capital Ratio PFIS PEER Financials PFIS Source: Earnings Release, 10K Peer Source: S&P Global Mid-Atlantic: DE, NJ, NY, MD, PA banks $1 - 5 Billion in Assets 18
Slide 19: Deposit Breakout – Insured & Uninsured
Nasdaq: PFIS Deposit Breakout – Insured & Uninsured 19 Financials March 31, 2024 At period end Amount Percent of Total Number of accounts Average Balance Deposit Detail: Retail $ 1,370,187 42.8 % 70,081 $ 20 Commercial 1,072,263 33.5 13,327 80 Municipal 500,493 15.6 1,892 265 Brokered 260,995 8.1 24
Slide 20: Sources of Liquidity at March 31, 2024
Nasdaq: PFIS Sources of Liquidity at March 31, 2024 20 Financials Total Available At March 31, 2024 Total Available Outstanding for Future Liquidity FHLB advances $ 1,246,143 $ 304,954 $ 941,189 Federal Reserve - Discount Window 452,613 452,613 Correspondent bank lines of credit 18,000 18,000 Other
Slide 21: First Quarter 2024 Results
Nasdaq: PFIS First Quarter 2024 Results 21 ($ in thousands except per share data) 1Q 2024 4Q 2023 1Q 2023 Net Interest Income $ 19,318 $ 20,269 $ 23,112 Provision for (credit to) credit losses $ 708 $ 1,669 $ 1,264 Net Income $ 3,466 $ 3,630 $ 7,579 Earnings per average diluted common share $ 0.49 $
Slide 22: Peoples Security Bank Capital
Nasdaq: PFIS Peoples Security Bank Capital 22 11.64% 13.74% 13.76% 12.27% 13.01% 12.94% 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 03 31 24 Common Equity Tier 1 Capital to Risk Weighted Assets (%) Common Equity Tier 1 Capital to Risk Weighted A
Slide 23: 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 03 31 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 $1 - 5 Billion in
Slide 24: Pre-provision net revenue (PPNR) non-GAAP reconciliation
Nasdaq: PFIS Pre-provision net revenue (PPNR) (non-GAAP reconciliation) 24 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 2024 2023 2023 2023 2023 Pre-provision net revenue to average assets Income before taxes (GAAP) $ 3,944 $ 4,217 $ 8,081 $ 11,235 $ 8,968 Plus: Provision for (credit to) credit losses 708 1,
Slide 25: Non-GAAP reconciliation
Nasdaq: PFIS Non-GAAP reconciliation 25 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 2024 2023 2023 2023 2023 Core net income per share: Net income GAAP $ 3,466 $ 3,630 $ 6,746 $ 9,425 $ 7,579 Adjustments: Less: Gain (loss) on sale of available for sale securities 81 Add: Gain (loss) on sale of available for
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