Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 79

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 79
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 plan currently
insures five directors. The director life insurance benefit of up to $100,000 per participating director is provided through a single
premium bank-owned life insurance, or “BOLI,” program, among other reasons, because BOLI is a cost-effective way of providing
the benefits. The eligible participating directors are not required to pay any premiums on the life insurance policy, but have the imputed
value of the insurance coverage included in their taxable income.

<div align='center'>Certain Relationships and Related Transactions</div>

The Bank has made, and expects
to continue to make, loans in the future to our directors and executive officers and their family members, and to firms, corporations,
and other entities in which they and their family members maintain interests. All such loans require the prior approval of our board of
directors. None of such loans are, as of the date of this proxy statement, or were at December 31, 2024, nonaccrual, past due, restructured
or potential problems, and all of such loans were made in the ordinary course of business, on substantially the same terms, including
interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to the Company or the Bank
and did not involve more than the normal risk of collectability or present other unfavorable features.

Prior to the consummation of the FNCB merger, Louis A. DeNaples, Sr.
and JJS Family Partnership, LP, a partnership controlled by Joseph Coccia, each acquired $1.5 million principal amount of the Company’s
Subordinated Notes due 2030. The notes bear interest at a rate of 5.375 percent per year through June 2025 and then float based on a benchmark
rate, provided that the interest rate will at no time be less the 4.75 percent. Mr. DeNaples and JJS Family Partnership, LP each received
$34,266 in interest on the notes during 2024.

Except for loan transactions
and deposits with the Bank, there were no transactions since the beginning of our last fiscal year, and there are no currently proposed
transactions, in which we were or are to be a participant, the amount involved exceeds $120,000, and in which any related person who is
also an executive officer had or will have a direct or indirect material interest.

The Bank has a formal process
with respect to the review and approval of loans extended by