Peoples Financial Services Corp. Reports Decrease in Net Income Amid Increased Credit Losses for Quarter Ended June 30, 2026

Peoples Financial Services Corp. reported its financial results for the quarter ended June 30, 2026, revealing a net income of $14.8 million, or $1.48 per diluted share, a decrease from $17.0 million, or $1.68 per diluted share, in the same period of 2025. The decline in profitability was attributed to a significant increase in the provision for credit losses, which rose to $3.1 million from a benefit of $0.2 million in the prior year, reflecting strong loan growth. Additionally, noninterest expenses increased by $2.3 million, primarily due to higher salaries and benefits, occupancy costs, and advertising expenses. Despite these challenges, net interest income increased to $45.6 million from $42.2 million year-over-year, driven by a larger earning asset base.

Total assets for the company grew by $170 million, or 6.5% annualized, reaching $5.4 billion as of June 30, 2026. This growth was primarily fueled by an increase in net loans, which rose by $235.9 million, or 11.7% annualized, to $4.3 billion. However, total investment securities decreased by $57.6 million to $529.6 million, and cash and cash equivalents also saw a decline of $12.7 million. The company’s total liabilities increased by $153.6 million to $4.9 billion, largely due to a rise in interest-bearing deposits and borrowings.

In terms of operational metrics, the company reported a total of 10,010,367 shares outstanding as of August 1, 2026. The total deposits increased by $74.8 million to $4.5 billion, with interest-bearing deposits rising by $82.7 million. However, noninterest-bearing deposits decreased by $8 million. The company’s allowance for credit losses stood at $42.3 million, representing 0.98% of loans held for investment, compared to 0.96% at the end of 2025. Nonperforming assets increased to $14.7 million, or 0.27% of total assets, up from $12.1 million, or 0.23%, at the end of the previous year.

Looking ahead, Peoples Financial Services Corp. remains focused on maintaining its capital adequacy and liquidity. The company reported that it met all regulatory capital requirements, with a common equity tier 1 capital ratio of 10.87% as of June 30, 2026. The board of directors declared a dividend of $0.625 per share for the third quarter of 2026, consistent with previous dividends. The company anticipates that its current liquidity position, bolstered by a strong deposit base and available borrowing capacity, will enable it to meet future financial obligations and support continued growth.