Peoples Financial Services Corp. reported unaudited third‑quarter and year‑to‑date 2025 earnings, posting net income of $15.2 million or $1.51 per diluted share for the three months ended September 30, 2025. This represents a decline from the $17.0 million, $1.68 per share reported for the June quarter, and a net loss of $4.3 million, $0.43 per share for the same period in 2024.
The decline in sequential net income was driven by a $0.6 million pre‑tax loss on the sale of administrative properties and higher occupancy expenses associated with the company’s transition to a new headquarters. Net interest income increased $1.9 million to $41.9 million for the quarter, while year‑to‑date net interest income rose $45.4 million to $122.9 million. Noninterest income was $5.5 million, slightly down from $5.7 million in the prior year quarter, and noninterest expense fell $6.8 million to $28.7 million from $35.5 million, reflecting lower acquisition‑related costs.
The cost of borrowings climbed 67 basis points to 6.01 % versus 5.34 % in 2024. Provision for credit losses turned to a credit of $0.8 million, compared with an expense of $14.5 million a year earlier. Tax‑equivalent net interest margin expanded to 3.50 % from 2.29 % in the prior year quarter; net interest margin was 3.54 % versus 3.26 % last year. Allowance for credit losses was 1.02 % of net loans, down from 1.05 % at year‑end 2024.
Year‑to‑date earnings were $47.2 million, $4.69 per diluted share, up from $2.4 million, $0.30 per share in 2024. Return on average assets for the nine months was 1.19 %, down from 1.36 % in the June quarter; return on average equity was 12.02 %, compared with 13.87 % in the prior year quarter. The decline in profitability ratios reflects higher operating expenses and the impact of the new headquarters transition.
The results follow the July 1, 2024 merger with FNCB Bancorp, which expanded the balance sheet and contributed to higher net interest income. A subordinated debt issuance in Q2 2025 increased average borrowings and the cost of subordinated debt. Asset quality improved, with non‑performing assets at 0.33 % of total assets. Management noted continued focus on efficiency, customer service, and long‑term growth, and the company increased its dividend to $0.6175 per share for the second quarter, a 50.6 % rise over the same quarter in 2024. No forward guidance was provided.
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