Peoples Financial Services Corp. reports Q2 net income of $17mln, up 13.4% YoY.

• Peoples Financial Services Corp reports Q2 2025 net income of $17.0 million, up from $15.0 million in Q1 2025. • Diluted earnings per share increased to $1.68 from $1.49. • ROAA and ROAE rose to 1.36% and 13.87% from 1.22% and 12.70%. • Digital data not specifically mentioned in the article.

Peoples Financial Services Corp (NASDAQ: PFIS) reported its unaudited financial results for the second quarter (Q2) and year-to-date (YTD) 2025, showcasing significant improvements in key financial metrics. The bank holding company, which includes Peoples Security Bank and Trust Company, reported a net income of $17.0 million for the three months ended June 30, 2025, marking a 13.3% increase from $15.0 million in the first quarter (Q1) 2025. This growth can be attributed to higher net interest income and lower provisions for credit losses.

The diluted earnings per share (EPS) increased to $1.68 from $1.49 in Q1 2025, indicating a 12.1% year-over-year (YoY) growth. This improvement was driven by the company's merger with FNCB Bancorp, Inc., which resulted in higher levels of interest-earning assets and increased transaction volumes.

Return on average assets (ROAA) and return on average equity (ROAE) also showed notable improvements. ROAA rose to 1.36% on an annualized basis from 1.22% in Q1 2025, while ROAE increased to 13.87% from 12.70%. These metrics reflect the company's enhanced operational efficiency and profitability.

The efficiency ratio, a non-GAAP measure, decreased to 53.92% from 55.77% in Q1 2025, indicating improved operational efficiency. The book value per common share increased to $49.44 from $48.21 in Q1 2025, while the tangible book value per common share rose to $38.75 from $37.35.

The company also paid a second quarter dividend of $0.6175 per share, representing a 50.6% increase over the previous year's per share dividend. The allowance for credit losses to loans decreased to 1.02% from 1.03% in Q1 2025, reflecting improved credit quality.

Peoples Financial Services Corp's financial results for the second quarter 2025 demonstrate a strong performance, driven by the company's strategic merger and enhanced operational efficiency. The company's focus on increasing interest-earning assets and reducing credit losses has resulted in significant improvements in key financial metrics.

References:
[1] https://www.marketscreener.com/news/peoples-financial-services-corp-reports-unaudited-second-quarter-and-year-to-date-2025-earnings-ce7c5fdddb8eff26