Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 79

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 79
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 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.

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 it to related persons. In accordance with these procedures, all transactions
with related persons must be approved or ratified by disinterested members of board of directors. All loans and commitments to lend included
in such transactions were made under substantially the same terms, including interest rates, collateral, and repayment terms as those
prevailing at the time for comparable transactions with other persons not related to the Bank and do not involve more than the normal
risk of collection or present other unfavorable features.

<div align='center'>53</div>

Our code of business conduct
and ethics, audit committee charter, and loan policy and procedures related to the approval of loans set forth our policies and procedures
for the review, approval, or ratification of any transactions with related persons