Filed by Peoples Financial Services Corp.
Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934
 
Subject Company: Penseco Financial Services Corporation
Commission File No. 000-23777
 
NEWS RELEASE
TO BUSINESS EDITOR:
 
PEOPLES FINANCIAL SERVICES CORP. REPORTS EARNINGS
 
Hallstead, PA, July 12 – Peoples Financial Services Corp. (OTCBB:PFIS) today reported earnings for the six months ended June 30, 2013, of $4,562 thousand or $1.48 per share, a decrease of $142 thousand or 3.0%, compared to $4,704 thousand or $1.51 per share for the same period last year. Earnings for the second quarter 2013 totaled $2,282 thousand or $0.74 per share compared to $2,284 thousand or $0.73 per share for the second quarter of 2012.
 
Return on average assets was 1.34% for the second quarter and 1.37% for the first half of 2013, compared to 1.46% and 1.51% for the respective periods of 2012. Return on average stockholders’ equity was 13.78% and 14.02%, respectively, for the second quarter and year-to-date 2013, compared to 15.36% and 16.02% for the same periods of 2012.
 
“The slight decrease in comparable first half earnings were caused primarily by higher levels of noninterest expense and income taxes which more than offset the improvement in our net interest income and the reduction in the provision for loan losses,” stated Alan W. Dakey, President and Chief Executive Officer. “We look for improved financial performance with the completion of our pending merger with Penseco Financial Services Corporation expected to take effect in the fourth quarter of 2013 provided all approvals are received. This business combination is unique as it brings together two strong community banks that were each founded in Northeastern Pennsylvania as opposed to recent takeovers of local community banks by out of market financial institutions. We believe our ability to continue to operate as a local community bank after the completion of the transaction will benefit the communities of Northeastern Pennsylvania and Southern New York through offering exceptional personalized service and a significantly enhanced product and service line. Moreover, we believe this transaction improves the prospects for increased long-term shareholder value by increasing the potential of share liquidity through the planned post closing NASDAQ listing and raising the dividend by approximately 35%,” concluded Dakey.
 
HIGHLIGHTS

  • Net interest income for the first six months improved 5.1% over the prior year.
 
  • Dividends per share increased 9.5% in 2013.
 
  • Year-to-year loan growth approximated 7.7%.
 
  • Deposits grew $22.6 million in the first half of 2013.
 
  • Nonperforming assets decreased 6.3% in the second quarter 2013.
 
INCOME STATEMENT REVIEW
 
Tax-equivalent net interest income for the six months ended June 30, improved $471 thousand or 3.9% to $12,625 thousand in 2013 from $12,154 thousand in 2012. A slight improvement of $46 thousand in tax-equivalent interest revenue was supplemented by a material decrease in interest expense of $425 thousand. Growth in average earning assets of $41.0 million offset partially by a 29 basis point decrease in the tax-equivalent yield on earning assets were the primary factors contributing to the increase in interest revenue. Specifically, the tax-equivalent yield on the loan portfolio decreased 18 basis points to 5.27% for the first half of 2013 from 5.45% for the same period of 2012. In addition, average loans increased $20.8 million or 4.5% comparing the six months ended June 30, 2013 and 2012.  The tax-equivalent yield on the investment portfolio decreased 32 basis points to 3.08% in 2013 from 3.40% in 2012. Average investments increased $10.7 million or 7.9% in 2013. Partially offsetting the negative effects of the yield decrease and aiding the positive effects of earning asset growth was a decrease of 23 basis points in the cost of funds, which was the primary factor leading to the decreased interest expense. The tax-equivalent net interest margin for the six months ended June 30, decreased 11 basis points to 3.99% in 2013 from 4.10% in 2012. The net interest margin for the second quarter of 2013 was 4.03%, compared to 3.96% the previous quarter.
 
The provision for loan losses was $330 thousand for the six months ended June 30, 2013, and $1,035 thousand for the same six months of 2012.  The provision for loan losses was $165 thousand for the second quarter of 2013 compared to $390 thousand for the same period last year.
 
Noninterest income totaled $2,348 thousand for the six months ended June 30, 2013, a decrease of $225 thousand or 8.7% from $2,573 thousand for the same six months of last year.  Mortgage banking income increased 9.8% to $413 thousand in 2013 from $376 thousand in 2012.  For the second quarter, noninterest income decreased $214 thousand to $1,123 thousand in 2013, from $1,337 thousand in 2012.
 
Noninterest expense for the six months ended June 30, increased $897 thousand or 12.4% to $8,109 thousand in 2013 from $7,212 thousand in 2012. Employee-related costs rose $479 thousand or 13.8% as a result of increases in staffing, higher health insurance costs and normal merit increases. Additional equipment-related costs resulted in a $126 thousand or 8.1% increase in net occupancy and equipment expense. Other expenses increased $292 thousand or 13.3% comparing the six months ended June 30, 2013 and 2012. For the second quarter, noninterest expense totaled $4,158 thousand in 2013, an increase of $260 thousand or 6.7% from $3,898 thousand in 2012.
 
BALANCE SHEET REVIEW
 
Total assets equaled $689.0 million at June 30, 2013, an increase of $50.3 million compared to $638.7 million at June 30, 2012. Strong loan demand resulted in an increase of $35.1 million or 7.7% in loans, net of unearned income, to $492.2 million at the close of the second quarter of 2013 from $457.1 million one year earlier. There were $19.6 million in federal funds sold as of the end of the second quarter of 2013 compared to $13.1 million at the same point in 2012 as deposit growth ramped up in the second quarter of 2013. Investment securities available-for-sale amounted to $138.8 million at June 30, 2013, and $128.6 million at June 30, 2012. Despite strong competition for deposits within our market area, total deposits increased $58.8 million comparing June 30, 2013 and 2012.
 
Stockholders’ equity equaled $67.6 million or $21.89 per share at June 30, 2013, and $63.9 million or $20.48 per share at June 30, 2012. Included in stockholders’ equity was accumulated other comprehensive income related entirely to net unrealized holding gains on available-for-sale investment securities of $3,038 thousand at June 30, 2013, compared to accumulated other comprehensive income of $4,559 thousand at the end of the same period of 2012. Dividends declared for the first six months were $0.46 per share in 2013 and $0.42 per share in 2012.

Nonperforming assets equaled $11.8 million or 2.39% of loans, net of unearned income and foreclosed assets at June 30, 2013, compared to $9.8 million or 2.14% one year earlier. The slight deterioration in asset quality resulted from an increase in nonaccrual loans and foreclosed assets partially offset by a decrease in accruing loans past due 90 days or more.
 
The allowance for loan losses equaled $6.7 million or 1.37% of loans, net of unearned income, at June 30, 2013, compared to $5.9 million or 1.29% at June 30, 2012. The allowance for loan losses covered 57.1% of nonperforming assets at the end of the second quarter of 2013, compared to 60.3% at the same time last year. Loans charged-off, net of recoveries, for the six months ended June 30, equaled $176 thousand or 0.07% of average loans outstanding in 2013 compared to $468 thousand or 0.21% of average loans outstanding in 2012.

Peoples Financial Services Corporation is the parent company of Peoples Neighborhood Bank (the “Bank”), an independent community bank serving Lackawanna, Wyoming and Susquehanna Counties in Pennsylvania and Broome County in New York through twelve offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. In addition, customers can take advantage of PNB Online Banking services by accessing the Company's website at http://www.peoplesnatbank.com. Peoples Wealth Management, a division of the Bank’s subsidiary Peoples Advisors LLC, provides investment advisory services to the general public. The Company's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies.

ADDITIONAL INFORMATION ABOUT THE MERGER:

Peoples Financial Services Corp. will be filing a registration statement, which will include a joint proxy statement/prospectus of Penseco Financial Services Corporation and Peoples Financial Services Corp., and other relevant documents concerning the merger with the SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENTS/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain these documents free of charge at the SEC’s website, http://www.sec.gov/. In addition, documents filed with the SEC by Penseco Financial Services Corporation will be available free of charge by written request to Mr. Patrick M. Scanlon, Senior Vice President, Finance Division Head, Penn Security Bank & Trust Company, 150 North Washington Avenue, Scranton, Pennsylvania 18503 or oral request to Mr. Scanlon at (570)346-7741, extension 2316.

Documents filed with the SEC by Peoples Financial Services Corp. will be available free of charge by written request to Mr. Scott A. Seasock, Senior Vice President and Chief Financial Officer, Peoples Financial Services Corp., 82 Franklin Avenue, Hallstead, Pennsylvania 18822 or oral request to Mr. Seasock at (570)879-6122.

The directors, executive officers, and certain other members of management and employees of Penseco Financial Services Corporation and Peoples Financial Services Corp. are participants in the solicitation of proxies in favor of the merger from the shareholders of Penseco Financial Services Corporation and Peoples Financial Services Corp. Information about the directors and executive officers of Penseco Financial Services Corporation is set forth in its Annual Report on Form 10-K filed on March 14, 2013 for the year ended December 31, 2012 (including the definitive proxy statement filed on April 1, 2013, and incorporated by reference therein). Additional information regarding the interests of such participants, as well as information about the directors and executive officers of Peoples Financial Services Corp. will be included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC if and when they become available.

This document is not an offer to sell shares of Peoples Financial Services Corp. securities which may be issued in the proposed transaction. Such securities are offered only by means of the joint proxy statement/prospectus referred to above.
Summary Data
Peoples Financial Services Corp.
Five Quarter Trend
(In thousands, except per share data)

 
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
 
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Key performance data:
  
   
   
   
   
 
 
  
   
   
   
   
 
Per share data:
  
   
   
   
   
 
Net income
  
$
0.74
    
$
0.74
    
$
0.70
    
$
0.72
    
$
0.73
  
Cash dividends declared
  
$
0.23
    
$
0.23
    
$
0.22
    
$
0.22
    
$
0.21
  
Book value
  
$
21.89
    
$
21.98
    
$
21.46
    
$
21.05
    
$
20.48
  
Tangible book value
  
$
21.74
    
$
21.81
    
$
21.29
    
$
20.87
    
$
20.29
  
Market value:
                                        
High
  
$
39.90
    
$
34.00
    
$
31.00
    
$
31.00
    
$
30.00
  
Low
  
$
33.00
    
$
30.05
    
$
29.50
    
$
28.80
    
$
28.00
  
Closing
  
$
35.25
    
$
33.00
    
$
30.50
    
$
29.85
    
$
29.00
  
Market capitalization
  
$
108,824
    
$
101,795
    
$
94,070
    
$
93,083
    
$
90,432
  
Common shares outstanding
    
3,087,206
      
3,084,706
      
3,084,256
      
3,118,356
      
3,118,356
  
 
                                        
Selected ratios:
                                        
 
                                        
Return on average stockholders' equity
    
13.78
%
    
14.26
%
    
13.51
%
    
14.26
%
    
15.36
%
 
                                        
Return on average assets
    
1.34
%
    
1.40
%
    
1.31
%
    
1.38
%
    
1.46
%
 
                                        
Stockholders' equity to total assets
    
9.81
%
    
10.00
%
    
9.86
%
    
10.11
%
    
10.00
%
 
                                        
Efficiency ratio
    
56.96
%
    
56.35
%
    
54.77
%
    
55.87
%
    
55.20
%
 
                                        
Nonperforming assets to loans, net, and foreclosed assets
    
2.39
%
    
2.61
%
    
2.66
%
    
2.23
%
    
2.14
%
 
                                        
Net charge-offs to average loans, net
    
0.05
%
    
0.10
%
    
0.04
%
    
-0.04
%
    
0.05
%
 
                                        
Allowance for loan losses to loans, net
    
1.37
%
    
1.38
%
    
1.41
%
    
1.34
%
    
1.29
%
 
                                        
Earning assets yield (FTE)
    
4.69
%
    
4.67
%
    
4.57
%
    
4.75
%
    
4.96
%
 
                                        
Cost of funds
    
0.85
%
    
0.91
%
    
0.99
%
    
1.08
%
    
1.10
%
 
                                        
Net interest spread (FTE)
    
3.84
%
    
3.76
%
    
3.58
%
    
3.67
%
    
3.86
%
 
                                        
Net interest margin (FTE)
    
4.03
%
    
3.96
%
    
3.79
%
    
3.89
%
    
4.09
%

Peoples Financial Services Corp.
Consolidated Statements of Income
(In thousands, except per share data)

Six Months Ended
  
June 30
    
June 30
  
 
  
2013
    
2012
  
 
  
   
 
Interest income:
  
   
 
Interest and fees on loans:
  
   
 
Taxable
  
$
11,633
    
$
11,197
  
Tax-exempt
    
589
      
812
  
Interest and dividends on investment securities available-for-sale:
                
Taxable
    
1,165
      
1,239
  
Tax-exempt
    
696
      
687
  
Dividends
    
12
      
15
  
Interest on interest-bearing balances with banks
    
2
      
5
  
Interest on federal funds sold
    
14
          
Total interest income
    
14,111
      
13,955
  
 
                
Interest expense:
                
Interest on deposits
    
1,972
      
2,119
  
Interest on short-term borrowings
    
64
      
111
  
Interest on long-term debt
    
112
      
343
  
Total interest expense
    
2,148
      
2,573
  
Net interest income
    
11,963
      
11,382
  
Provision for loan losses
    
330
      
1,035
  
Net interest income after provision for loan losses
    
11,633
      
10,347
  
 
                
Noninterest income:
                
Service charges, fees and commissions
    
1,632
      
1,540
  
Wealth management income
    
394
      
281
  
Mortgage banking income
    
413
      
376
  
Net gains (losses) on sale of investment securities available-for-sale
    
(1
)
    
383
  
Net gains (losses) on sale of other real estate
    
(90
)
    
(7
)
Total noninterest income
    
2,348
      
2,573
  
 
                
Noninterest expense:
                
Salaries and employee benefits expense
    
3,958
      
3,479
  
Net occupancy and equipment expense
    
1,669
      
1,543
  
Other expenses
    
2,482
      
2,190
  
Total noninterest expense
    
8,109
      
7,212
  
Income before income taxes
    
5,872
      
5,708
  
Provision for income tax expense
    
1,310
      
1,004
  
Net income
  
$
4,562
    
$
4,704
  
 
                
Other comprehensive income (loss):
                
Unrealized holding gains (losses) on investment securities available-for-sale
  
$
(2,786
)
  
$
1,768
  
Reclassification adjustment for losses (gains) included in net income
    
1
      
(383
)
Income tax expense (benefit) related to other comprehensive income
    
(947
)
    
471
  
Other comprehensive income (loss), net of income taxes
    
(1,838
)
    
914
  
Comprehensive income
  
$
2,724
    
$
5,618
  
 
                
Per share data:
                
Net income
  
$
1.48
    
$
1.51
  
Cash dividends declared
  
$
0.46
    
$
0.42
  
Average common shares outstanding
    
3,085,216
      
3,118,269
  

Peoples Financial Services Corp.
Consolidated Statements of Income
(In thousands, except per share data)

Three months ended
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
 
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Interest income:
  
   
   
   
   
 
Interest and fees on loans:
  
   
   
   
   
 
Taxable
  
$
6,003
    
$
5,630
    
$
5,732
    
$
5,698
    
$
5,682
  
Tax-exempt
    
291
      
298
      
299
      
316
      
393
  
Interest and dividends on investment securities available-for-sale:
                                        
Taxable
    
580
      
585
      
528
      
558
      
603
  
Tax-exempt
    
347
      
349
      
330
      
325
      
328
  
Dividends
    
6
      
6
      
4
      
6
      
8
  
Interest on interest-bearing balances with banks
    
1
      
1
      
3
      
2
      
1
  
Interest on federal funds sold
    
7
      
7
      
12
      
11
          
Total interest income
    
7,235
      
6,876
      
6,908
      
6,916
      
7,015
  
 
                                        
Interest expense:
                                        
Interest on deposits
    
986
      
986
      
1,086
      
1,115
      
1,071
  
Interest on short-term borrowings
    
37
      
27
      
26
      
29
      
49
  
Interest on long-term debt
    
35
      
77
      
120
      
163
      
170
  
Total interest expense
    
1,058
      
1,090
      
1,232
      
1,307
      
1,290
  
Net interest income
    
6,177
      
5,786
      
5,676
      
5,609
      
5,725
  
Provision for loan losses
    
165
      
165
      
330
      
330
      
390
  
Net interest income after provision for loan losses
    
6,012
      
5,621
      
5,346
      
5,279
      
5,335
  
 
                                        
Noninterest income:
                                        
Service charges, fees and commissions
    
824
      
808
      
882
      
804
      
797
  
Wealth management income
    
197
      
197
      
164
      
180
      
138
  
Mortgage banking income
    
173
      
240
      
297
      
277
      
302
  
Net gains (losses) on sale of investment securities available-for-sale
    
(1
)
                            
99
  
Net gains (losses) on sale of other real estate
    
(70
)
    
(20
)
    
(331
)
            
1
  
Total noninterest income
    
1,123
      
1,225
      
1,012
      
1,261
      
1,337
  
 
                                        
Noninterest expense:
                                        
Salaries and employee benefits expense
    
2,090
      
1,868
      
1,776
      
1,792
      
1,749
  
Net occupancy and equipment expense
    
830
      
839
      
790
      
747
      
753
  
Other expenses
    
1,238
      
1,244
      
1,097
      
1,299
      
1,396
  
Total noninterest expense
    
4,158
      
3,951
      
3,663
      
3,838
      
3,898
  
Income before income taxes
    
2,977
      
2,895
      
2,695
      
2,702
      
2,774
  
Provision for income tax expense
    
695
      
615
      
519
      
462
      
490
  
Net income
  
$
2,282
    
$
2,280
    
$
2,176
    
$
2,240
    
$
2,284
  
 
                                        
Other comprehensive income:
                                        
Unrealized holding gains (losses) on investment securities available-for-sale
  
$
(2,806
)
  
$
20
    
$
159
    
$
321
    
$
1,791
  
Reclassification adjustment for losses (gains) included in net income
    
1
                              
(99
)
Income tax expense  (benefit) related to other comprehensive income
    
(954
)
    
7
      
54
      
109
      
575
  
Other comprehensive income (loss), net of income taxes
    
(1,851
)
    
13
      
105
      
212
      
1,117
  
Comprehensive income
  
$
431
    
$
2,293
    
$
2,281
    
$
2,452
    
$
3,401
  
 
                                        
Per share data:
                                        
Net income
  
$
0.74
    
$
0.74
    
$
0.70
    
$
0.72
    
$
0.73
  
Cash dividends declared
  
$
0.23
    
$
0.23
    
$
0.22
    
$
0.22
    
$
0.21
  
Average common shares outstanding
    
3,085,937
      
3,084,487
      
3,113,524
      
3,118,356
      
3,118,429
  

Peoples Financial Services Corp.
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)

Three months ended
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
 
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Net interest income:
  
   
   
   
   
 
Interest income
  
   
   
   
   
 
Loans, net:
  
   
   
   
   
 
Taxable
  
$
6,003
    
$
5,630
    
$
5,732
    
$
5,698
    
$
5,682
  
Tax-exempt
    
440
      
452
      
453
      
479
      
595
  
Total loans, net
    
6,443
      
6,082
      
6,185
      
6,177
      
6,277
  
Investments:
                                        
Taxable
    
586
      
591
      
532
      
564
      
611
  
Tax-exempt
    
526
      
529
      
500
      
492
      
497
  
Total investments
    
1,112
      
1,120
      
1,032
      
1,056
      
1,108
  
Interest-bearing balances with banks
    
1
      
1
      
3
      
2
      
1
  
Federal funds sold
    
7
      
7
      
12
      
11
          
Total interest income
    
7,563
      
7,210
      
7,232
      
7,246
      
7,386
  
Interest expense:
                                        
Deposits
    
986
      
986
      
1,086
      
1,115
      
1,071
  
Short-term borrowings
    
37
      
27
      
26
      
29
      
49
  
Long-term debt
    
35
      
77
      
120
      
163
      
170
  
Total interest expense
    
1,058
      
1,090
      
1,232
      
1,307
      
1,290
  
Net interest income
  
$
6,505
    
$
6,120
    
$
6,000
    
$
5,939
    
$
6,096
  
 
                                        
Loans, net:
                                        
Taxable
    
5.29
%
    
5.23
%
    
5.22
%
    
5.31
%
    
5.43
%
Tax-exempt
    
5.39
%
    
5.53
%
    
5.49
%
    
5.59
%
    
5.65
%
Total loans, net
    
5.30
%
    
5.25
%
    
5.24
%
    
5.34
%
    
5.45
%
Investments:
                                        
Taxable
    
2.42
%
    
2.37
%
    
2.07
%
    
2.42
%
    
2.49
%
Tax-exempt
    
4.48
%
    
4.56
%
    
5.41
%
    
5.90
%
    
5.94
%
Total investments
    
3.10
%
    
3.07
%
    
2.95
%
    
3.33
%
    
3.37
%
Interest-bearing balances with banks
    
1.41
%
    
0.48
%
    
0.93
%
    
0.52
%
    
0.37
%
Federal funds sold
    
0.20
%
    
0.37
%
    
0.25
%
    
0.23
%
        
Total earning assets
    
4.69
%
    
4.67
%
    
4.57
%
    
4.75
%
    
4.96
%
Interest expense:
                                        
Deposits
    
0.82
%
    
0.86
%
    
0.93
%
    
0.99
%
    
1.03
%
Short-term borrowings
    
0.81
%
    
0.77
%
    
0.77
%
    
0.85
%
    
0.61
%
Long-term debt
    
4.96
%
    
3.98
%
    
3.61
%
    
3.66
%
    
3.67
%
Total interest-bearing liabilities
    
0.85
%
    
0.91
%
    
0.99
%
    
1.08
%
    
1.10
%
Net interest spread
    
3.84
%
    
3.76
%
    
3.58
%
    
3.67
%
    
3.86
%
Net interest margin
    
4.03
%
    
3.96
%
    
3.79
%
    
3.89
%
    
4.09
%

Peoples Financial Services Corp.
Consolidated Balance Sheets
(In thousands, except per share data)

 
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
At period end
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Assets:
  
   
   
   
   
 
Cash and due from banks
  
$
9,459
    
$
7,591
    
$
9,777
    
$
8,014
    
$
8,084
  
Interest-bearing balances with banks
    
298
      
248
      
1,126
      
1,268
      
1,175
  
Federal funds sold
    
19,600
      
15,410
      
17,180
      
3,525
      
13,130
  
Investment securities available-for-sale
    
138,758
      
146,665
      
147,780
      
139,083
      
128,596
  
Loans held for sale
    
1,105
      
785
      
1,917
      
1,204
      
2,242
  
Loans, net
    
492,213
      
479,255
      
465,773
      
470,415
      
457,054
  
Less: allowance for loan losses
    
6,735
      
6,635
      
6,581
      
6,297
      
5,916
  
Net loans
    
485,478
      
472,620
      
459,192
      
464,118
      
451,138
  
Premises and equipment, net
    
8,748
      
8,645
      
8,685
      
8,581
      
8,716
  
Accrued interest receivable
    
3,481
      
3,433
      
3,272
      
3,391
      
2,903
  
Other assets
    
22,047
      
22,385
      
22,594
      
20,232
      
22,730
  
Total assets
  
$
688,974
    
$
677,782
    
$
671,523
    
$
649,416
    
$
638,714
  
 
                                        
 
                                        
Liabilities:
                                        
Deposits:
                                        
Noninterest-bearing
  
$
112,063
    
$
106,516
    
$
102,322
    
$
97,950
    
$
96,692
  
Interest-bearing
    
484,872
      
476,045
      
471,989
      
456,462
      
441,419
  
Total deposits
    
596,935
      
582,561
      
574,311
      
554,412
      
538,111
  
Short-term borrowings
    
17,972
      
19,975
      
12,764
      
13,598
      
13,233
  
Long-term debt
    
2,717
      
2,925
      
13,130
      
13,333
      
18,533
  
Accrued interest payable
    
211
      
204
      
425
      
263
      
248
  
Other liabilities
    
3,549
      
4,324
      
4,697
      
2,171
      
4,713
  
Total liabilities
    
621,384
      
609,989
      
605,327
      
583,777
      
574,838
  
 
                                        
 
                                        
 
                                        
Stockholders' equity:
                                        
 
                                        
Common stock, par value $2.00 authorized 12,500,000, shares issued 3,341,251;
    
6,683
      
6,683
      
6,683
      
6,683
      
6,683
  
Capital surplus
    
3,191
      
3,160
      
3,155
      
3,153
      
3,155
  
Retained earnings
    
60,923
      
59,352
      
57,781
      
56,291
      
54,738
  
Accumulated other comprehensive income
    
3,038
      
4,889
      
4,876
      
4,771
      
4,559
  
Less: Treasury stock, at cost, shares held 254,045; 256,545; 256,995; 222,895; 222,895
    
6,245
      
6,291
      
6,299
      
5,259
      
5,259
  
Total stockholders' equity
    
67,590
      
67,793
      
66,196
      
65,639
      
63,876
  
Total liabilities and stockholders' equity
  
$
688,974
    
$
677,782
    
$
671,523
    
$
649,416
    
$
638,714
  

Peoples Financial Services Corp.
Consolidated Balance Sheets
(In thousands, except per share data)

 
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
Average quarterly balances
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Assets:
  
   
   
   
   
 
Loans, net:
  
   
   
   
   
 
Taxable
  
$
455,318
    
$
438,073
    
$
436,953
    
$
426,500
    
$
421,204
  
Tax-exempt
    
32,703
      
33,218
      
32,844
      
34,092
      
42,392
  
Total loans, net
    
488,021
      
471,291
      
469,797
      
460,592
      
463,596
  
Investments:
                                        
Taxable
    
97,014
      
101,328
      
102,244
      
92,860
      
98,659
  
Tax-exempt
    
47,066
      
47,197
      
36,785
      
33,180
      
33,624
  
Total investments
    
144,080
      
148,525
      
139,029
      
126,040
      
132,283
  
Interest-bearing balances with banks
    
286
      
841
      
1,282
      
1,523
      
1,078
  
Federal funds sold
    
14,238
      
7,652
      
18,898
      
19,168
      
1,936
  
Total earning assets
    
646,625
      
628,309
      
629,006
      
607,323
      
598,893
  
Other assets
    
34,432
      
34,081
      
34,297
      
40,111
      
31,073
  
Total assets
  
$
681,057
    
$
662,390
    
$
663,303
    
$
647,434
    
$
629,966
  
 
                                        
Liabilities and stockholders' equity:
                                        
Deposits:
                                        
Interest-bearing
  
$
480,084
    
$
467,597
    
$
466,604
    
$
449,946
    
$
419,987
  
Noninterest-bearing
    
108,037
      
102,126
      
100,685
      
98,725
      
94,920
  
Total deposits
    
588,121
      
569,723
      
567,289
      
548,671
      
514,907
  
Short-term borrowings
    
18,229
      
14,289
      
13,437
      
13,638
      
32,446
  
Long-term debt
    
2,828
      
7,868
      
13,239
      
17,735
      
18,641
  
Other liabilities
    
5,445
      
5,687
      
5,271
      
4,908
      
4,175
  
Total liabilities
    
614,623
      
597,567
      
599,236
      
584,952
      
570,169
  
Stockholders' equity
    
66,434
      
64,823
      
64,067
      
62,482
      
59,797
  
Total liabilities and stockholders' equity
  
$
681,057
    
$
662,390
    
$
663,303
    
$
647,434
    
$
629,966
  

Peoples Financial Services Corp.
Asset Quality Data
(In thousands)
 
 
  
June 30
    
March 31
    
Dec 31
    
Sept 30
    
June 30
  
At quarter end
  
2013
    
2013
    
2012
    
2012
    
2012
  
 
  
   
   
   
   
 
Nonperforming assets:
  
   
   
   
   
 
Nonaccrual/restructured loans
  
$
9,416
    
$
9,717
    
$
9,574
    
$
7,453
    
$
7,177
  
Accruing loans past due 90 days or more
    
419
      
850
      
861
      
804
      
737
  
Foreclosed assets
    
1,958
      
2,013
      
2,003
      
2,304
      
1,889
  
Total nonperforming assets
  
$
11,793
    
$
12,580
    
$
12,438
    
$
10,561
    
$
9,803
  
 
                                        
Three months ended
                                        
 
                                        
Allowance for loan losses:
                                        
Beginning balance
  
$
6,635
    
$
6,581
    
$
6,297
    
$
5,916
    
$
5,589
  
Charge-offs
    
105
      
169
      
62
      
35
      
84
  
Recoveries
    
40
      
58
      
16
      
86
      
21
  
Provision for loan losses
    
165
      
165
      
330
      
330
      
390
  
Ending balance
  
$
6,735
    
$
6,635
    
$
6,581
    
$
6,297
    
$
5,916
  
 
SOURCE Peoples Financial Services Corp.
/Contact: MEDIA/INVESTORS, Scott A. Seasock, 570.879.2175 or scotts@peoplesnatbank.com
 
Co:
Peoples Financial Services Corp.
St:
Pennsylvania
In:
Fin
 
Except for the historical information contained, herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties in the banking industry and overall economy. Such risks and uncertainties are detailed in the Company's Annual Report.