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Peoples Financial Services Corp. Reports Fourth Quarter and Full Year 2025 Earnings

Peoples Financial Services Corp., the parent company of Peoples Security Bank and Trust, has recently published its earnings report for the fourth quarter and the entire year ending December 31, 2025. The company disclosed a net income of $12 million, translating to $1.19 per diluted share for the quarter. In comparison, this marks a decline from the $15.2 million, or $1.51 per diluted share, reported for the third quarter of the same year.

Notably, the year ended with a substantial total net income of $59.2 million, or $5.88 per diluted share, showcasing a remarkable increase from $8.5 million, or $0.99 per diluted share, experienced in 2024. This growth primarily stems from a full-year consolidation following the merger with FNCB Bancorp, significantly augmenting the company's operational portfolio.

The Chief Executive Officer, Gerard Champi, highlighted that while the earnings for the fourth quarter faced challenges, notably due to a pre-tax loss of $2.2 million related to strategic portfolio adjustments, the company's balance sheet has been reinforced for future periods. He mentioned that despite this, the core earnings have shown resilience bolstered by higher levels of earning assets and increased transaction volumes.

Key Financial Indicators for Q4 2025

• - Net Income: $12 million; down from $15.2 million in Q3 2025.
• - Core Net Income: $13.7 million, or $1.36 per diluted share, in Q4 2025, up from $10.0 million in the same quarter last year.
• - Return on Average Assets (ROAA): 0.92%, compared to 0.47% a year ago.
• - Return on Average Equity (ROAE): 9.16%, improved from 5.07% year-on-year.

In reflecting on 2025 as a whole, net interest income rose to $166 million, a significant increase from $116 million in 2024, driven by higher interest-earning assets and reduced provisions for credit losses. The combined results from the merger have positively influenced the company's financial standing, as the total loans climbed to $4.1 billion, receiving an uptick of $73.4 million from 2024.

Strategic Developments

The earnings report also unveiled a reallocation of parts of the investment securities portfolio, where the company sold $78.6 million worth of U.S. treasury bonds to invest in higher-yield municipal bonds and agency mortgage-backed securities. This strategic move is expected to recover the losses incurred in approximately ten months, thereby enhancing overall yield prospects for the future.

This year, Peoples Financial also showed improvement in asset quality with non-performing loans decreasing significantly from 0.58% in 2024 to 0.30% in 2025, reflecting proactive management in underwriting and collections.

The financial results emphasize not just the company's immediate fiscal health but signal ongoing strategic positioning for sustained growth and risk management in the volatile financial landscape. As the company eyes the future, its leadership stresses the importance of maintaining realized efficiency and disciplined growth initiatives.

In conclusion, Peoples Financial Services Corp. stands poised to leverage its recent operational expansions and strategic decisions as it eyes opportunities for continued growth and shareholder value creation in the years ahead.