Peoples Financial Services Corp. Reports $17M Net Income and Improved Financial Performance for Q2 2025

Peoples Financial Services Corp. reported significant financial performance improvements in its quarterly filing for the period ending June 30, 2025. The company achieved a net income of $17.0 million, or $1.68 per diluted share, compared to $3.3 million, or $0.46 per diluted share, in the same quarter of the previous year. This increase was driven by a rise in net interest income, which reached $42.9 million, up from $19.4 million in the prior year, largely due to the acquisition of FNCB Bancorp, which expanded the company's earning assets. The net interest margin also improved to 3.69%, reflecting a favorable shift in the yield on earning assets.

In terms of overall financial position, total assets increased to $5.1 billion, a modest rise of $16.2 million from the end of 2024. This growth was primarily attributed to a $39.9 million increase in cash and cash equivalents, which reached $175.7 million. However, total loans remained relatively stable at $4.0 billion, with slight fluctuations across various loan categories. Notably, commercial and industrial loans increased by $37.1 million, while commercial real estate loans decreased by $41.5 million.

The company also experienced a decrease in total deposits, which fell by $120.2 million to $4.3 billion, primarily due to seasonal reductions in municipal deposits and a decline in time deposits. Interest-bearing deposits decreased by $84.3 million, while noninterest-bearing deposits dropped by $35.9 million. In contrast, total borrowings rose significantly to $271.0 million, up from $155.6 million at the end of 2024, driven by an increase in short-term borrowings and the issuance of new subordinated debt.

Peoples Financial Services Corp. continues to focus on strategic growth and operational efficiency. The company has maintained a strong capital position, with total stockholders' equity increasing to $494.1 million, supported by net income and a reduction in accumulated other comprehensive loss. The company’s capital ratios remain well above regulatory requirements, indicating a solid foundation for future growth. Looking ahead, management anticipates continued benefits from the FNCB merger, with expectations for further improvements in net interest income and overall financial performance as market conditions evolve.