{"id":516085,"date":"2021-07-21T17:58:14","date_gmt":"2021-07-21T21:58:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/peoples-financial-services-corp-reports-second-quarter-2021-earnings\/"},"modified":"2021-07-21T17:58:14","modified_gmt":"2021-07-21T21:58:14","slug":"peoples-financial-services-corp-reports-second-quarter-2021-earnings","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/peoples-financial-services-corp-reports-second-quarter-2021-earnings\/","title":{"rendered":"PEOPLES FINANCIAL SERVICES CORP. Reports Second Quarter 2021 Earnings"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n SCRANTON, Pa.<\/span>, July 21, 2021<\/span> \/PRNewswire\/ —\u00a0Peoples Financial Services Corp. (“Peoples”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, today reported unaudited financial results at and for the three months and six months ended June 30, 2021<\/span>. \u00a0Peoples reported net income of $8.5 million<\/span>, or $1.18<\/span> per diluted share for the three months ended June 30, 2021<\/span>, an increase of 12.6% when compared to $7.6 million<\/span>, or $1.03<\/span> per diluted share for the comparable period of 2020.\u00a0 The increase in earnings for the three months ended June 30, 2021<\/span> is primarily the result of a $1.7 million<\/span> decrease to the provision for loan losses, partially offset by a $0.2 million<\/span> decrease to pre-provision net interest income, an increase to noninterest expense of $0.3 million<\/span> and a higher income tax provision of $0.2 million<\/span>. <\/p>\n

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Net income for the six months ended June 30, 2021<\/span>, totaled $18.0 million<\/span> or $2.49<\/span> per diluted share, a 40.1% increase when compared to $12.9 million<\/span> or $1.74<\/span> per diluted share for the comparable period of 2020.\u00a0 The increase in earnings in the 2021 six month period is the product of a decrease to our provision for loan losses of $5.7 million<\/span>, primarily due to an adjustment in the year ago period to the economic qualitative factors included in our allowance for loan losses methodology relating to the impact of COVID-19, an increase to pre-provision net interest income of $1.0 million<\/span> and a decrease to noninterest expense of $0.7 million<\/span>.\u00a0 Partially offsetting the increase were a higher income tax provision of $2.2 million<\/span> and slightly lower noninterest income of $0.1 million<\/span>.<\/p>\n

In addition to evaluating its results of operations in accordance with GAAP, Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders’ equity and core net income ratios. \u00a0The reported results included in this release contain items, which Peoples considers non-core, namely gains and losses incurred within the investment securities portfolio. \u00a0Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. \u00a0Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. \u00a0The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions. <\/p>\n

Core net income, which we have defined to exclude gains or losses from our investment securities portfolio, for the three months ended June 30<\/span>, totaled $8.5 million<\/span> and $7.5 million<\/span> in 2021 and 2020, respectively.\u00a0 Core net income per share for the three months ended June 30, 2021<\/span> was $1.18<\/span>, a 15.7% increase from $1.02<\/span> reported for the same period in 2020. \u00a0Core net income in the 2021 second quarter excludes a pre-tax $17 thousand<\/span> unrealized loss on our equity investment portfolio.\u00a0 Core net income for 2020 excludes a $39 thousand<\/span> unrealized gain on our equity investment portfolio.<\/p>\n

Core net income for the six months ended June 30, 2021<\/span> was $18.0 million<\/span> or $2.49<\/span> per diluted share, a 41.6% increase when compared to $12.7 million<\/span> or $1.72<\/span> per diluted share for the same period of 2020. \u00a0Core net income for the current period excludes a pre-tax unrealized gain of $4 thousand<\/span> on our equity investment portfolio. \u00a0Core net income for 2020 was impacted by a pre-tax gain of $267 thousand<\/span> on the sale of debt securities and a $84 thousand<\/span> unrealized loss on our equity investment securities portfolio<\/p>\n

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