Company: PFIS
Filing Date: 2025-02-04
Form Type: 8-K
Source: 0001104659-25-009129
Chunk: 1

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-02-04
Form: 8-K
Item: Item 5.02
Chunk 1
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 and Trust Company since May 2011. Prior to that he was Assistant Vice President/Financial Reporting
Officer at Penn Security Bank since January 2006.

There are no family relationships between either
Mr. Bone and Mr. Anderson and any other person serving as a director or executive officer of PFIS. PSBT has made loans to PFIS’
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 were made in the ordinary course of business, were made on substantially the same terms, including
interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to PFIS, and did not involve
more than the normal risk of collectibility or present other unfavorable features. Neither Mr. Bone nor Mr. Anderson nor any of their
related persons has had since the beginning of PFIS’ last fiscal year, or will have, a direct or indirect material interest in any
transaction or any current proposed transaction that requires disclosure under Item 404(a) of Regulation S-K.

PFIS and PSBT are not entering into or amending
any material plan, contract or arrangement to which Mr. Bone or Mr. Anderson is a party or in which they participate in connection with
their change in positions, and are not making any grant or award or any modification thereto, under any such plan, contract or arrangement
in connection with any such event.

PFIS, PSBT and Mr. Bone are parties to an Amended
and Restated Employment Agreement dated November 27, 2024 (the “employment agreement”).

The employment agreement has an initial three-year
term commencing as of July 1, 2024, the date of the merger of FNCB Bancorp, Inc. with and into PFIS, with an automatic renewal right subject
to earlier termination, beginning on July 1, 2027 and continuing each July 1st thereafter. Mr. Bone shall be paid a base salary of $290,000
on an annualized basis that may be increased (but not decreased) from time to time. Mr. Bone will be entitled to participate in any PFIS
or PSBT annual bonus or incentive compensation plan, program, arrangement or award (collectively, the “ Executive Incentive Plan”)
as may be available from time to time. Mr. Bone will also be entitled to participate in any equity or equity-based compensation plans