PFIS · Peoples Financial Services Corp.

Peoples Financial Services Corp. delivered a stable first quarter in 2026, with net income of $14.7 million, or $1.47 per diluted share, down slightly from $15.0 million in the prior year. The reduction was primarily driven by a $1.2 million increase in the provision for credit losses, necessitated by robust loan growth of $123.3 million, or 12.3% on an annualized basis. Non-interest expense also rose $2.5 million to $29.9 million, largely due to higher salaries and employee benefits, which management attributed to annual merit increases and rising health insurance costs. These headwinds were partially offset by strong top-line performance; net interest income increased $3.4 million to $42.9 million. The net interest margin (FTE) expanded 17 basis points year-over-year to 3.67%, driven by a significant 30 basis point reduction in the cost of interest-bearing deposits, which fell to 2.16%. Asset quality remained a highlight, with the ratio of non-performing assets to total loans improving to 0.29% from 0.59% a year ago. Additionally, the bank successfully repositioned its investment portfolio, selling $31.9 million in securities to fund loan demand and reinvest in higher-yielding assets. Management expressed optimism regarding the company's positioning for the remainder of 2026, emphasizing disciplined expense management and credit oversight.