Company: PFIS
Filing Date: 2025-12-29
Form Type: 8-K
Source: 0001104659-25-124540
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Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-12-29
Form: 8-K
Item: Item 8.01
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Item 8.01      Other Events.  

On December 23, 2025, Peoples Financial Services
Corp. (the “ Company”), bank holding company for Peoples Security Bank and Trust Company, completed a repositioning of a portion
of its investment securities portfolio. The Company sold lower-yielding, available-for-sale (“ AFS”) U. S. treasury bonds with
a book value of approximately $78.6 million, a weighted average yield of 1.18% and weighted average life of approximately 1.2 years. The
sale of the bonds resulted in a realized after-tax loss of approximately $1.85 million which will be recognized during the fourth quarter
of 2025. Net proceeds of approximately $76.1 million from the sale were used to purchase higher-yielding investment securities that have
been classified as AFS. The investment securities purchased consisted of approximately $38.2 million of U. S. agency mortgage-backed securities
and approximately $37.9 million of discounted tax-exempt municipal bonds. The AFS investment securities purchased had an average book
yield of approximately 4.67% and duration of 10.5 years as of the date of purchase.

The repositioning is estimated to improve interest
income from the securities portfolio by approximately $2.8 million over the next 12 next months. The Company currently expects to recover
the approximately $1.85 million after-tax loss on the sale of investment securities in approximately 10 months. The transaction had no
impact on stockholders’ equity or book value per share as of the date of the sale, as unrealized losses on the AFS investment securities
are accounted for as a deduction to stockholders’ equity. The capital levels of the Company and Peoples Security Bank and Trust
Company remain well in excess of those required to be categorized as well-capitalized by their bank regulators.

Cautionary Note Regarding Forward-Looking Statements: