Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 24

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 24
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 officers, or the adoption of any other bylaw or
articles provision that has the effect of increasing director or officer liability will only operate prospectively.

New Article 25 will become
effective, if at all, upon approval by Peoples shareholders. The full text of the proposed bylaw amendment, which is the proposed adoption
of a new Article 25, is attached to this proxy statement as Annex A. This summary is qualified in its entirety by reference to the
proposed Article 25 and, to the extent it differs from the text of the proposed Article 25, the text of the proposed Article 25
will control.

Recommendation

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FORTHE PROPOSAL TO AMEND THE COMPANY’S BYLAWS BY ADDING A NEW ARTICLE 25, TO LIMIT THE PERSONAL LIABILITY OF DIRECTORS AND OFFICERS FOR MONETARY DAMAGES TO THE EXTENT PERMITTED BY PENNSYLVANIA LAW.

<div align='center'>Proposal 4 – Ratification of the Appointment of Baker Tilly US, LLP as the Company’s Independent Registered Public Accounting Firm for the Fiscal Year Ending December 31, 2025</div>

The Audit Committee of the
Board has concluded that the continued retention of Baker Tilly US, LLP or “Baker Tilly,” is in the best interests of the
Company and its shareholders. As such, the audit committee of our board of directors has appointed Baker Tilly to serve as our independent
registered public accounting firm for the year ending December 31, 2025.

The audit committee has determined
to afford our shareholders the opportunity to express their opinions on the matter of auditors and, accordingly, is submitting to the
shareholders this proposal to ratify the appointment of Baker Tilly. Baker Tilly served as our independent registered public accounting
firm for the Company for the fiscal years ended December 31, 2024 and 2023. Representatives of the firm are expected to participate
in the virtual annual meeting and will have an opportunity to make a statement if they so desire and will be available to respond to appropriate
questions.

<div align='center'>14</div>

The following table presents
the aggregate fees billed or expected to be billed to us by our principal independent registered public accounting firm for the fiscal
years ended December 31, 2024 and 2023.

| Fee Category          |     | 2024 |           |     | 2023