# EDGAR Filing Document

**Accession Number:** 0001056943
**File Stem:** 0001104659-25-104365
**Filing Date:** 2025-10
**Character Count:** 87449
**Document Hash:** 18c32300ef8fe524828153b1afacce5c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-104365.hdr.sgml**: 20251030

**ACCESSION NUMBER**: 0001104659-25-104365

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251030

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251030

**DATE AS OF CHANGE**: 20251030

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PEOPLES FINANCIAL SERVICES CORP.
- **CENTRAL INDEX KEY:** 0001056943
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 232391852
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36388
- **FILM NUMBER:** 251435488

**BUSINESS ADDRESS:**
- **STREET 1:** 30 E D PREATE DRIVE
- **CITY:** MOOSIC
- **STATE:** PA
- **ZIP:** 18507
- **BUSINESS PHONE:** 570-346-7741

**MAIL ADDRESS:**
- **STREET 1:** 30 E D PREATE DRIVE
- **CITY:** MOOSIC
- **STATE:** PA
- **ZIP:** 18507

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PEOPLES FINANCIAL SERVICES CORP/
- **DATE OF NAME CHANGE:** 19980303

?xml version='1.0' encoding='ASCII'? PEOPLES FINANCIAL SERVICES CORP._October 30, 2025

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 8-K**

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934** 

**Date of Report: October 30, 2025** 

**(Date of earliest event reported)** 

## PEOPLES FINANCIAL SERVICES CORP.
**(Exact name of registrant as specified in its charter)** 

**001-36388**

**(Commission**

**File Number)**

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| | |
|:---|:---|
| **PA** | **23-2391852** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(IRS Employer of**<br>**Identification No.)** |

---

**30 E D Preate Drive, Moosic, Pennsylvania 18507**

**(Address of principal executive offices) (Zip Code)** 

**(570) 346-7741**

**(Registrant's telephone number, including area code)** 

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading Symbol** | **Name of each exchange on which registered:** |
| Common stock, $2.00 par value | PFIS | The Nasdaq Stock Market |

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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 **Item 2.02 Results of Operations and Financial Condition.** 

On October 30, 2025, Peoples Financial Services Corp. issued a press release announcing unaudited results of operations for the three and nine month periods ended September 30, 2025 and financial condition at September 30, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits

The following exhibits are filed with this Form 8-K:

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| | |
|:---|:---|
| ('Unnamed: 0_level_0', 'Exhibit<br>No. <br>') | ('&nbsp;&nbsp;<br>', '&nbsp;&nbsp;&nbsp;Description <br>') |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[Press release dated October 30, 2025 announcing results of operations and financial condition.](pfis-20251030xex99d1.htm) |

---

**Exhibit Index**

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| | |
|:---|:---|
| Exhibit<br>No.  | &nbsp;&nbsp;&nbsp;Description  |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[Press release dated October 30, 2025 announcing results of operations and financial condition.](pfis-20251030xex99d1.htm) |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| PEOPLES FINANCIAL SERVICES CORP. | PEOPLES FINANCIAL SERVICES CORP. |
| By: | /s/ Gerard A. Champi |
|  | Gerard A. Champi |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| By: | /s/James M. Bone, Jr. |
|  | James M. Bone, Jr., CPA |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer) |

---

Date: October 30, 2025

## Exhibit 99.1

**Exhibit 99.1** 

NEWS RELEASE

TO BUSINESS EDITOR:

PEOPLES FINANCIAL SERVICES CORP.

Reports Unaudited Third Quarter and Year to Date 2025 Earnings

Moosic, PA, October 30, 2025/PRNEWSWIRE/ – Peoples Financial Services Corp. ("Peoples" or the "Company") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company (the "Bank"), today reported unaudited financial results at and for the three and nine months ended September 30, 2025.

Peoples reported net income of $15.2 million, or $1.51 per diluted share for the three months ended September 30, 2025, compared to net income of $17.0 million, or $1.68 per diluted share for the three months ended June 30, 2025 and a net loss of $4.3 million, or $0.43 per diluted share for the three months ended September 30, 2024. Return on average assets ("ROAA") and return on average equity ("ROAE") on an annualized basis for the three months ended September 30, 2025, was 1.19% and 12.02% compared to 1.36% and 13.87% for the three months ended June 30, 2025, and (0.33)% and (3.58)% for the three months ended September 30, 2024. Net income in the current quarter was negatively impacted by the recognition of a $0.6 million pre-tax loss on the pending sale of several administrative properties along with higher occupancy expenses associated with the Company's transition into its new headquarters. Net income in the third quarter of 2024 included $9.7 million in acquisition-related expenses.

For the nine months ended September 30, 2025, net income was $47.2 million, or $4.69 per diluted share, compared to $2.4 million, or $0.30 per diluted share for the comparable period of 2024. The increase in net income for the current year to date period of $44.8 million was due primarily to higher net interest income and noninterest income, and a lower provision for credit losses which more than offset an increase in noninterest expenses. On July 1, 2024, the Company completed its merger with FNCB Bancorp, Inc. ("FNCB," such merger the "FNCB merger"). Higher levels of interest-earning assets, higher transaction volumes and purchase accounting related accretion resulting from the FNCB merger resulted in the increase in net interest income and noninterest income when compared to the prior year period.

"We are extremely pleased with another strong quarter driven by disciplined credit quality and balance sheet management," stated Gerard A. Champi, Chief Executive Officer. "We are building for the future with a focus on efficiency, enhanced customer service and long-term growth as we centralize operations in our new corporate headquarters."

The Company's consolidated financial results for any periods ended or including periods prior to July 1, 2024, do not reflect the financial results of FNCB and its subsidiaries.

In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity, core net income and pre-provision revenue ratios, and tax-equivalent net interest income and related ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely acquisition-related expenses and merger-related adjustments to the allowance for credit losses ("ACL") for nonrecurring provisions for purchase credit deteriorated ("PCD") and non-PCD loans. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

**NOTABLES IN THE QUARTER**

● Non-performing assets to total assets improved to 0.33% at September 30, 2025 compared to 0.34% at June 30, 2025 and 0.45% at December 31, 2024, and non-performing assets to total loans, net and foreclosed assets improved to 0.42% at September 30, 2025 compared to 0.44% at June 30, 2025 and 0.58% at December 31, 2024.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● ROAE on an annualized basis was 12.02% for the three months ended September 30, 2025 compared to 13.87% for the three months ended June 30, 2025, and (3.58)% for the three months ended September 30, 2024.

● ROAA on an annualized basis was 1.19% for the three months ended September 30, 2025 compared to 1.36% for the three months ended June 30, 2025, and (0.33)% for the three months ended September 30, 2024.

● Book value per common share at September 30, 2025 increased to $50.95 as compared to $49.44 and $47.53 at June 30, 2025, and September 30, 2024, respectively.

● Tangible book value per common share, a non-GAAP measure <sup>[1](#footnote-2)</sup> , increased to $40.43 on September 30, 2025, compared to $38.75 and $36.24 at June 30, 2025, and September 30, 2024, respectively.

● Loans increased $18.8 million, or 1.9%, on an annualized basis during the three months ended September 30, 2025.

● The Company completed its move to new corporate headquarters in Moosic, PA.

**INCOME STATEMENT REVIEW** 

● Net interest margin ("NIM"), calculated on a fully taxable equivalent ("FTE") basis, a non-GAAP measure <sup>1</sup> , for the three months ended September 30, 2025, was 3.54%, an increase of 28 basis points compared to 3.26% for the three months ended September 30, 2024.

● The tax-equivalent yield on interest-earning assets, a non-GAAP measure <sup>1</sup> , decreased 7 basis points to 5.56% for the three months ended September 30, 2025, from 5.63% for the three months ended September 30, 2024.

● The cost of funds, which represents the average rate paid on total interest-bearing liabilities, decreased 28 basis points to 2.64% for the three months ended September 30, 2025, when compared to 2.89% for the three months ended September 30, 2024.

● The cost of interest-bearing deposits decreased 37 basis points for the three months ended September 30, 2025 to 2.39% from 2.76% in the three months ended September 30, 2024.

● The cost of total deposits, which includes the impact of noninterest-bearing deposits was 1.88% for the three months ended September 30, 2025, a decrease of 45 basis points from 2.33% for the three months ended September 30, 2024.

● The efficiency ratio <sup>1</sup> was 56.52% for the three months ended September 30, 2025, compared to 53.14% for the three months ended September 30, 2024.

**Third Quarter 2025 Results – Comparison to Third Quarter 2024**

Net interest income on an FTE basis for the three months ended September 30, 2025 increased $1.9 million to $41.9 million from $40.0 million for the three months ended September 30, 2024. The increase in FTE net interest income was due to a $3.1 million decrease in tax-equivalent interest income, a non-GAAP measure<sup>1</sup>, that was more than offset by a $5.0 million decrease in interest expense.

The reduction in FTE interest income resulted primarily from decreases in average loan, investment and federal funds sold balances, coupled with a reduction in accretion associated with purchase accounting fair value discounts. Average loans, net, decreased $62.6 million for the three months ended September 30, 2025, compared to the prior year three-month period ended September 30, 2024. Average investments totaled $651.8 million in the three months ended September 30, 2025, and $700.6 million in the three months ended September 30, 2024, a decrease of $48.8 million. Average federal funds sold decreased $58.7 million to $33.5 million for the three months ended September 30, 2025, from $92.2 million for the three months ended September 30, 2024. Accretion associated with purchase accounting fair

<sup>1</sup> See reconciliation of non-GAAP financial measures on pg.18-20.

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value discounts on purchased loans was $3.7 million for the three months ended September 30, 2025, a decrease of $1.0 million from $4.7 million for the same period of 2024.

The decrease in interest expense, comparing the three month periods ended September 30, 2025, and September 30, 2024, was due primarily to decreases in average deposit rates, coupled with a reduction in higher cost brokered deposits, partially offset by increases in average volumes and rates on borrowed funds, which were largely related to the net new issuance of subordinated debt in the second quarter of 2025. Average interest-bearing deposits decreased $448.8 million and represented 78.7% of total average deposits for the three months ended September 30, 2025, as compared to 84.2% for the three months ended September 30, 2024. Average brokered deposits decreased $210.9 million to $178.6 million for the three months ended September 30, 2025, from $389.5 million for the comparable three-month period of 2024. Average noninterest bearing deposits increased $191.6 million and represented 21.3% of total average deposits in the three months ended September 30, 2025, as compared to 15.8% in the three months ended September 30, 2024.

Average total borrowings increased $53.3 million for the three months ended September 30, 2025, as compared to the same period of 2024, which was primarily due to the new issuance of subordinated debt which occurred in the second quarter of 2025. Additionally, the Company's cost of borrowings increased 67 basis points to 6.01% for the three months ended September 30, 2025, compared to 5.34% for the same three months of 2024. In June 2025, the Company called and redeemed $33 million of its subordinated notes due in June 2030 that repriced to 9.08% and issued $85 million in fixed-to-floating rate subordinated notes due June 2035 at an initial fixed rate through June 2030 of 7.75%.

Short-term borrowings averaged $29.2 million for the three-month period ended September 30, 2025, at an average cost of 4.63% compared to $43.9 million at an average cost of 4.98% during the comparable three-month period in 2024. Long-term debt averaged $129.5 million for the three-month period ended September 30, 2025, at an average cost of 4.62% compared to $111.8 million at an average cost of 4.94% for the three months ended September 30, 2024. Subordinated debt averaged $83.1 million for the three-month period ended September 30, 2025, at an average cost of 8.34% compared to $33.0 million at an average cost of 5.34% for the three months ended September 30, 2024.

For the three months ended September 30, 2025, $0.8 million was credited to the provision for credit losses compared to an expense of $14.5 million in the prior year's same quarter. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The provision for the third quarter of 2024 included a non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger.

Noninterest income was $5.5 million and $5.7 million for the three months ended September 30, 2025, and 2024, respectively. The current year quarter includes a $0.6 million loss on the pending sale of administrative offices, as the Company has commenced consolidating operations to a new corporate center. The prior year quarter included gains of $0.2 million on equity investments versus a negligible loss in the current year's quarter. Wealth management income increased $0.2 million and interest rate swap income increased $0.2 million due to an increase in transactions.

Noninterest expense decreased $6.8 million to $28.7 million for the three months ended September 30, 2025, from $35.5 million for the three months ended September 30, 2024, which primarily reflected a reduction in acquisition-related expenses partially offset by increases in salaries and employee benefits, occupancy and equipment expenses and other expenses. Acquisition-related expenses were $9.7 million in the quarter ended September 30, 2024, with only negligible expenses in the current year's quarter. Salaries and employee benefits increased $0.9 million to $14.1 million for the three months ended September 30, 2025 from $13.2 million for the same three months of 2024 due primarily to higher incentive compensation accruals. Net occupancy and equipment expenses increased $0.8 million from the prior year's quarter, which included higher lease and maintenance expenses. Other expenses increased $1.4 million to $5.2 million for the quarter ending September 30, 2025, from $3.8 million for the prior year's quarter. The increase in other expenses was primarily related to an increase in the provision for unfunded commitments. The Company recorded a provision for unfunded commitments of $0.2 million in the third quarter of 2025 compared to a credit to the provision for unfunded commitments of $0.8 million for the same quarter of 2024.

Income tax expense was $3.6 million for the three months ended September 30, 2025, compared to a benefit of $0.7 million for the three months ended September 30, 2024. The effective tax rate was 19.1% for the three months ended September 30, 2025, and 13.2% of pre-tax loss for the three months ended September 30, 2024, respectively.

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**Nine-Month Results – Comparison to Prior Year First Nine Months**

Net interest income for the nine months ended September 30, 2025 increased $45.4 million to $122.9 million from $77.5 million for the nine months ended September 30, 2024. FTE net interest income, a non-GAAP measure<sup>[1](#footnote-3)</sup>, for the nine months ended September 30, 2025 increased $45.9 million to $125.0 million from $79.1 million for the nine months ended September 30, 2024.

Tax-equivalent interest income, a non-GAAP measure<sup>1</sup>, increased $47.7 million to $195.1 million due to higher levels of interest-earning assets such as loans and investments and an additional $7.4 million from accretion of purchase accounting marks on loans. Average loans increased $726.4 million and average investments increased $52.0 million comparing the nine months ended September 30, 2025 and 2024, primarily due to assets the Company acquired in the FNCB merger. The tax-equivalent yield on interest-earning assets, a non-GAAP measure<sup>1</sup> was 5.58% for the first nine months of 2025 compared to 5.01% for the nine months ended September 30, 2024. Loan yields increased 49 basis points to 5.99% while investment yields increased 82 basis points to 3.11% for the nine months ended September 30, 2025.

Partially offsetting the increase in tax-equivalent interest income was a $1.8 million increase in interest expense to $70.0 million for the nine months ended September 30, 2025, from $68.2 million for the nine months ended September 30, 2024, which was primarily caused by higher volumes of interest-bearing liabilities, partially offset by a reduction in funding costs. Average interest-bearing liabilities increased $498.0 million to $3.6 billion from $3.1 billion comparing the year-to-date periods of 2025 and 2024, which reflected higher volumes of both deposits and borrowings. The cost of interest-bearing liabilities during the nine-month period ended September 30, 2025 decreased 33 basis points to 2.61% from 2.94% for the nine months ended September 30, 2024. The cost of interest-bearing deposit products decreased 43 basis points to 2.42% for the nine months ended September 30, 2025 from 2.85% for the comparable prior year period, while borrowing costs increased 44 basis points to 5.69% from 5.25% for the nine months ended September 30, 2024. The increase in the cost of borrowed funds was largely due to the previously mentioned issuance of new subordinated debt, partially offset by a reduction in market rates for short-term borrowings.

For the nine months ended September 30, 2025, a credit to the provision for credit losses of $0.9 million was recorded compared to a prior year provision of $15.8 million. The current year credit was due primarily to a reduction in specific reserves on individually evaluated loans associated with a reduction in nonperforming loans coupled with a decline in the overall model loss rate. The prior year provision included non-recurring provision of $14.3 million for non-PCD loans acquired in the FNCB merger.

Noninterest income was $18.0 million for the nine months ended September 30, 2025 and $12.7 million for the comparable period ended September 30, 2024. The increase in non-interest income was attributable to the increased size and scale of the Company following the merger. Comparing the year-to-date periods of 2025 and 2024, service charges and fees increased $3.2 million. Wealth management income increased $0.7 million, BOLI cash surrender value increased $0.5 million and merchant services income increased $0.5 million.

Noninterest expense for the nine months ended September 30, 2025 was $84.3 million, an increase of $12.6 million from $71.7 million for the nine months ended September 30, 2024. Almost all noninterest expense line items increased as a result of the FNCB merger and the expanded operations of the combined Company. Salaries and employee benefits expenses increased $10.9 million compared to the year ago period due to the addition of 195 full-time employees from the FNCB merger. Occupancy and equipment expenses were higher by $4.4 million in the current period due to increased technology costs related to system integration and increased account and transaction volumes, and higher facilities costs. Amortization of intangible assets increased $3.2 million in the nine months ended September 30, 2025, on the amortization of merger-related intangibles, primarily core deposit intangibles. Partially offsetting these increases was a decrease in merger-related expenses to $0.2 million for the nine months ended September 30, 2025 from $11.2 million for the nine months ended September 30, 2024. The efficiency ratio a non-GAAP, measure<sup>1</sup>, improved to 55.38% for the nine months ended September 30, 2025 compared to 64.21% for the respective nine months of 2024.

The provision for income taxes for the nine months ended September 30, 2025 totaled $10.3 million and the effective tax rate was 17.9% as compared to $0.2 million and 9.1% in the prior period.

<sup>1</sup> See reconciliation of non-GAAP financial measures on pg.18-20.

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**BALANCE SHEET REVIEW** 

At September 30, 2025, total assets, loans, and deposits were $5.2 billion, $4.0 billion, and $4.3 billion, respectively.

Total loans, which were $4.0 billion at September 30, 2025, increased $22.9 million as compared to December 31, 2024. Increases in commercial loans and residential real estate loans were partially offset by reductions in commercial real estate, equipment financing, and indirect auto loans.

Total investments were $610.3 million at September 30, 2025, compared to $606.9 million at December 31, 2024. At September 30, 2025, the available for sale securities totaled $534.5 million and the held to maturity securities totaled $73.3 million. The unrealized loss on the available for sale securities decreased $14.9 million from $49.0 million at December 31, 2024, to $34.1 million at September 30, 2025. The unrealized losses on the held to maturity portfolio totaled $9.7 million and $13.0 million at September 30, 2025, and December 31, 2024, respectively.

Total deposits decreased $117.8 million to $4.3 billion at September 30, 2025, due primarily to reductions in brokered CDs. Noninterest-bearing deposits decreased $23.5 million to $912.0 million at September 30, 2025, from $935.5 million at December 31, 2024, and interest-bearing deposits decreased $94.3 million to $3.4 billion at September 30, 2025, from $3.5 billion at December 31, 2024. Additionally, the Company had $162.2 million and $256.4 million of longer-term brokered CDs at September 30, 2025, and December 31, 2024, respectively. As part of strategic balance sheet management initiatives, the Company reduced its higher rate brokered CD portfolio by $94.2 million during the first nine months of 2025.

The Company's deposit base is diversified and consisted of 40.9% retail accounts, 36.4% commercial accounts, 18.9% municipal relationships and 3.8% brokered deposits at September 30, 2025. At September 30, 2025, total uninsured deposits were approximately $1.4 billion, or 32.3% of total deposits. Included in the uninsured total at September 30, 2025, were $398.6 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $1.4 million of affiliate company deposits.

In addition to deposit gathering and current long-term debt, the Company has additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve's Discount Window, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities. At September 30, 2025, available borrowing capacity totaled $1.1 billion at the FHLB and $388.3 million at the Federal Reserve's Discount Window. At September 30, 2025, the Company had $179.9 million in cash and cash equivalents, an increase of $44.1 million from $135.8 million at December 31, 2024. For additional information on the deposit portfolio and additional sources of liquidity, see the tables on page 16.

The Company maintained its well capitalized position at September 30, 2025. Stockholders' equity equaled $509.3 million or $50.95 per share at September 30, 2025, compared to $469.0 million or $46.94 per share at December 31, 2024. The increase in stockholders' equity from December 31, 2024, is primarily attributable to net income less dividends to shareholders and an $11.5 million decrease to accumulated other comprehensive loss ("AOCL") resulting primarily from a reduction in the unrealized loss on available for sale securities. The net after tax unrealized loss on available for sale securities included in AOCL at September 30, 2025, and December 31, 2024, was $26.7 million and $38.3 million, respectively.

Tangible book value, a non-GAAP measure<sup>[1](#footnote-4)</sup>, increased to $40.43 per share at September 30, 2025, from $35.88 per share at December 31, 2024. Dividends declared for the nine months ended September 30, 2025 amounted to $1.86 per share.

**ASSET QUALITY REVIEW** 

Nonperforming assets, which include nonperforming loans, loans past due 90 days or more and still accruing, and foreclosed assets, were $16.8 million or 0.42% of loans, net, and foreclosed assets at September 30, 2025, compared to $23.0 million or 0.58% of loans, net, and foreclosed assets at December 31, 2024. As a percentage of total assets, nonperforming assets were 0.33% at September 30, 2025, compared to 0.45% at December 31, 2024. At September 30,

<sup>1</sup> See reconciliation of non-GAAP financial measures on pg.18-20.

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2025, the Company had one foreclosed commercial property recorded at $1.5 million compared to one foreclosed residential property recorded at $27 thousand at December 31, 2024.

During the nine months ended September 30, 2025, net charge-offs totaled $1.1 million and the Company recognized a credit to the provision for credit losses of $0.9 million. During the three months ended September 30, 2025, net charge-offs were $0.2 million and the credit to the provision for credit losses was $0.8 million. The allowance for credit losses equaled $39.8 million or 0.99% of loans, net, at September 30, 2025, compared to $41.8 million or 1.05% of loans, net, at December 31, 2024.

**About Peoples:**

Peoples Financial Services Corp. is the bank holding company of Peoples Security Bank and Trust Company, an independent community bank serving its retail and commercial customers through 39 full-service community banking offices located within Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations, and government entities. Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, and local and timely decision making. For more information visit psbt.com.

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| | |
|:---|:---|
| In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity, core net income and pre-provision revenue ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely acquisition related expenses and gain or loss on the sale of securities available for sale. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions. <br>|  |
| SOURCE: Peoples Financial Services Corp.  | SOURCE: Peoples Financial Services Corp.  |
| /Contact:  | MEDIA/INVESTORS, Marie L. Luciani, Investor Relations Officer, <br>570.346.7741 or marie.luciani@psbt.com |
| Co: | Peoples Financial Services Corp.  |
| St: | Pennsylvania  |
| In: | Fin  |

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**Safe Harbor Forward-Looking Statements:**

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples Financial Services Corp. and its subsidiaries (collectively, "Peoples") and other statements that are not historical facts that are considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.

Peoples cautions you that undue reliance should not be placed on forward-looking statements and that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: macroeconomic trends, including interest rates and inflation and their effect on our investment values; the effects of any recession in the United States; political instability and the consequences thereof, such as the recent shutdown of the U.S. federal government; the impact on financial markets from geopolitical conflict, including from wars, military conflict or trade policies, including tariffs, retaliatory tariffs, tariff counter-measures, or the threat of such actions; impairment charges relating to our investment portfolio; credit risks in connection with our lending activities; the economic health of our market area; our exposure to commercial and industrial, construction, commercial real estate, and equipment finance loans; our ability to maintain an adequate allowance for credit losses; access to liquidity; the strength of our customer deposit levels; unrealized losses; reliance on our subsidiaries; accounting procedures, policies and requirements; changes in the value of goodwill; future pension plan costs; our ability to retain key personnel; the strength of our disclosure controls and procedures; environmental liabilities; reliance on third-party vendors and service providers; competition from non-bank entities; the development and us of AI in business processes, services, and products; our ability to prevent, detect and respond to cybersecurity threats and incidents; a failure of information technology, whether due to a breach, cybersecurity incident, or ability to keep pace with growth and developments; our ability to comply with privacy and data protection requirements; changes in U.S. or regional economic conditions; our ability to compete effectively in our industry; the soundness of other financial institutions; adverse changes (or the threat of such changes) in laws and regulations; fiscal and monetary policies of the federal government and its agencies; a failure to meet minimum capital requirements; our ability to realize the anticipated benefits of the FNCB merger; future acquisitions or a change in control; and other factors that may be described in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

The forward-looking statements are made as of the date of this release, and, except as may be required by

applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 **[TABULAR MATERIAL FOLLOWS]** 

------

**Summary Data**

**Peoples Financial Services Corp.** 

**Five Quarter Trend (Unaudited)**

**(In thousands, except share and per share data)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30<br>2025 | June 30<br>2025 | Mar 31<br>2025 | Dec 31<br>2024 | Sept 30<br>2024 |
| Key performance data: |  |  |  |  |  |
| Share and per share amounts: |  |  |  |  |  |
| Net income (loss) | $1.51 | $1.68 | $1.49 | $0.61 | $(0.43) |
| Core net income (1) | $1.51 | $1.69 | $1.51 | $0.99 | $1.64 |
| Core net income (PPNR) (1) | $1.81 | $2.03 | $1.83 | $1.46 | $1.83 |
| Cash dividends declared | $0.62 | $0.62 | $0.62 | $0.62 | $0.62 |
| Book value | $50.95 | $49.44 | $48.21 | $46.94 | $47.53 |
| Tangible book value (1) | $40.43 | $38.75 | $37.35 | $35.88 | $36.24 |
| Market value: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High | $53.69 | $51.21 | $53.70 | $58.76 | $50.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low | $46.90 | $40.67 | $44.47 | $44.73 | $41.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closing | $48.61 | $49.37 | $44.47 | $51.18 | $46.88 |
| Market capitalization | $485837 | $493438 | $444499 | $511325 | $468549 |
| Common shares outstanding | 9994595 | 9994696 | 9995483 | 9990724 | 9994648 |
| Selected ratios: |  |  |  |  |  |
| Return on average stockholders' equity | 12.02% | 13.87% | 12.70% | 5.07% | (3.58)% |
| Core return on average stockholders' equity (1) | 12.03% | 13.92% | 12.80% | 8.31% | 13.61% |
| Return on average tangible stockholders' equity (1) | 15.24% | 17.73% | 16.46% | 6.62% | (4.67)% |
| Core return on average tangible stockholders' equity (1) | 15.25% | 17.79% | 16.59% | 10.87% | 17.77% |
| Return on average assets | 1.19% | 1.36% | 1.22% | 0.47% | (0.33)% |
| Core return on average assets (1) | 1.19% | 1.36% | 1.23% | 0.76% | 1.24% |
| Stockholders' equity to total assets | 9.87% | 9.67% | 9.64% | 9.21% | 8.86% |
| Efficiency ratio (1)(2) | 56.52% | 53.92% | 55.77% | 63.03% | 53.14% |
| Nonperforming assets to loans, net, and foreclosed assets | 0.42% | 0.44% | 0.59% | 0.58% | 0.53% |
| Nonperforming assets to total assets | 0.33% | 0.34% | 0.47% | 0.45% | 0.41% |
| Net charge-offs to average loans, net | 0.02% | 0.00% | 0.09% | 0.09% | 0.01% |
| Allowance for credit losses to loans, net | 0.99% | 1.02% | 1.03% | 1.05% | 0.97% |
| Interest-bearing assets yield (FTE) (3) | 5.56% | 5.68% | 5.50% | 5.51% | 5.63% |
| Cost of funds | 2.64% | 2.60% | 2.58% | 2.88% | 2.89% |
| Net interest spread (FTE) (3) | 2.92% | 3.08% | 2.92% | 2.62% | 2.74% |
| Net interest margin (FTE) (1)(3) | 3.54% | 3.69% | 3.50% | 3.25% | 3.26% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See Reconciliation of Non-GAAP financial measures on pages 18-20.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Total noninterest expense less amortization of intangible assets and acquisition related expenses, divided by tax-equivalent net interest income and noninterest income less net gains (losses) on investment securities available for sale and net gains (losses) on sales of fixed assets.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Tax-equivalent adjustments were calculated using the federal statutory tax rate prevailing during the indicated periods of 21%.

------

**Peoples Financial Services Corp.**

**Consolidated Statements of Income (Unaudited)**

**(In thousands, except per share data)** 

---

| | | |
|:---|:---|:---|
|  | Sept 30 | Sept 30 |
| Nine months ended | 2025 | 2024 |
| Interest income: |  |  |
| Interest and fees on loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $170292 | $127859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 6698 | 5116 |
| Interest and dividends on investment securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 13073 | 8561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 1332 | 1153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends | 128 | 59 |
| Interest on interest-bearing deposits in other banks | 310 | 385 |
| Interest on federal funds sold | 1092 | 2524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 192925 | 145657 |
| Interest expense: |  |  |
| Interest on deposits | 61344 | 63216 |
| Interest on short-term borrowings | 976 | 1444 |
| Interest on long-term debt | 3897 | 1929 |
| Interest on subordinated debt | 3217 | 1330 |
| Interest on junior subordinated debt | 563 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 69997 | 68179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 122928 | 77478 |
| (Credit to) provision for credit losses | (877) | 15762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after (credit to) provision for credit losses | 123805 | 61716 |
| Noninterest income: |  |  |
| Service charges, fees, commissions and other | 10454 | 7304 |
| Merchant services income | 1136 | 598 |
| Commissions and fees on fiduciary activities | 1707 | 1717 |
| Wealth management income | 2219 | 1486 |
| Mortgage banking income | 387 | 263 |
| Increase in cash surrender value of life insurance | 1604 | 1116 |
| Interest rate swap income | 389 | 25 |
| Net gains on equity investments | 43 | 155 |
| Net gains on sale of fixed assets | 65 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 18004 | 12665 |
| Noninterest expense: |  |  |
| Salaries and employee benefits expense | 41370 | 30459 |
| Net occupancy and equipment expense | 20115 | 15745 |
| Acquisition related expenses | 236 | 11210 |
| Amortization of intangible assets | 4882 | 1665 |
| FDIC insurance and assessments | 2605 | 1907 |
| Other expenses | 15085 | 10742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 84293 | 71728 |
| Income before income taxes | 57516 | 2653 |
| Provision for income tax expense | 10305 | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $47211 | $2411 |
| Other comprehensive income: |  |  |
| Unrealized gains on investment securities available for sale | $14846 | $12744 |
| Reclassification adjustment for gains on available for sale securities included in net income |  | (1) |
| Change in derivative fair value | (114) | (185) |
| Income tax expense related to other comprehensive income | 3213 | 2748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of income tax expense | 11519 | 9810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income | $58730 | $12221 |
| Share and per share amounts: |  |  |
| Net income - basic | $4.72 | $0.30 |
| Net income - diluted | 4.69 | 0.30 |
| Cash dividends declared | $1.86 | $1.44 |
| Average common shares outstanding - basic | 9994175 | 8039734 |
| Average common shares outstanding - diluted | 10070947 | 8094036 |

---

------

**Peoples Financial Services Corp.**

**Consolidated Statements of Income (Loss) (Unaudited)**

**(In thousands, except per share data)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| Three months ended | 2025 | 2025 | 2025 | 2024 | 2024 |
| Interest income: |  |  |  |  |  |
| Interest and fees on loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $57621 | $57459 | $55212 | $57048 | $59411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 2151 | 2302 | 2245 | 2238 | 2299 |
| Interest and dividends on investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 4335 | 4604 | 4134 | 4359 | 4739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 537 | 399 | 396 | 397 | 411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends | 47 | 40 | 41 | 40 | 55 |
| Interest on interest-bearing deposits in other banks | 101 | 96 | 113 | 113 | 150 |
| Interest on federal funds sold | 372 | 435 | 285 | 1608 | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 65164 | 65335 | 62426 | 65803 | 68283 |
| Interest expense: |  |  |  |  |  |
| Interest on deposits | 20194 | 20303 | 20847 | 24718 | 26398 |
| Interest on short-term borrowings | 341 | 410 | 225 | 474 | 550 |
| Interest on long-term debt | 1509 | 1211 | 1177 | 1389 | 1389 |
| Interest on subordinated debt | 1748 | 1026 | 443 | 444 | 443 |
| Interest on junior subordinated debt | 189 | 188 | 186 | 267 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 23981 | 23138 | 22878 | 27292 | 29040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 41183 | 42197 | 39548 | 38511 | 39243 |
| (Credit to) provision for credit losses | (838) | (239) | 200 | 3369 | 14458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after (credit to) provision for credit losses | 42021 | 42436 | 39348 | 35142 | 24785 |
| Noninterest income: |  |  |  |  |  |
| Service charges, fees, commissions and other | 3386 | 3664 | 3404 | 3368 | 3384 |
| Merchant services income | 321 | 584 | 231 | 298 | 223 |
| Commissions and fees on fiduciary activities | 607 | 563 | 537 | 553 | 649 |
| Wealth management income | 950 | 619 | 650 | 633 | 708 |
| Mortgage banking income | 148 | 125 | 114 | 126 | 84 |
| Increase in cash surrender value of life insurance | 543 | 535 | 526 | 456 | 551 |
| Interest rate swap income (loss) | 182 | 164 | 43 | 260 | (53) |
| Net (losses) gains on equity investments | (21) | (7) | 71 | (23) | 175 |
| Net gains on sale of investment securities available for sale |  |  |  |  | 1 |
| Net (losses) gains on sale of fixed assets | (615) |  | 680 | (165) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 5501 | 6247 | 6256 | 5506 | 5719 |
| Noninterest expense: |  |  |  |  |  |
| Salaries and employee benefits expense | 14128 | 13761 | 13481 | 15287 | 13170 |
| Net occupancy and equipment expense | 7221 | 6284 | 6610 | 6386 | 6433 |
| Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| Amortization of intangible assets | 1515 | 1684 | 1683 | 1702 | 1665 |
| FDIC insurance and assessments | 607 | 976 | 1022 | 1251 | 809 |
| Other expenses | 5191 | 5491 | 4403 | 5217 | 3768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 28678 | 28262 | 27353 | 34833 | 35498 |
| Income (loss) before income taxes | 18844 | 20421 | 18251 | 5815 | (4994) |
| Income tax expense (benefit)  | 3598 | 3465 | 3242 | (272) | (657) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Other comprehensive income (loss): |  |  |  |  |  |
| Unrealized gain (loss) on investment securities available for sale | $7415 | $1859 | $5572 | $(10175) | $15167 |
| Reclassification adjustment for gains on available for sale securities included in net income |  |  |  |  | (1) |
| Change in benefit plan liabilities |  |  |  | 1518 |  |
| Change in derivative fair value | 18 | 16 | (148) | 817 | (1424) |
| Income tax expense (benefit) related to other comprehensive (loss) income | 1621 | 409 | 1183 | (1686) | 3008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of income tax expense (benefit) | 5812 | 1466 | 4241 | (6154) | 10734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | $21058 | $18422 | $19250 | $(67) | $6397 |
| Share and per share amounts: |  |  |  |  |  |
| Net income - basic | $1.53 | $1.70 | $1.50 | $0.61 | $(0.43) |
| Net income - diluted | 1.51 | 1.68 | 1.49 | 0.61 | (0.43) |
| Cash dividends declared | $0.62 | $0.62 | $0.62 | $0.62 | $0.62 |
| Average common shares outstanding - basic | 9994629 | 9994955 | 9992922 | 9994605 | 9987627 |
| Average common shares outstanding - diluted | 10086915 | 10082260 | 10043186 | 10051337 | 10044449 |

---

------

**Peoples Financial Services Corp.**

**Net Interest Margin (Unaudited)**

**(In thousands, fully taxable equivalent basis)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
|  | **Average**<br>**Balance**  | **Interest Income/**<br>**Expense** | **Yield/**<br>**Rate**  | **Average**<br>**Balance**  | **Interest Income/**<br>**Expense** | **Yield/**<br>**Rate**  |
| Assets: |  |  |  |  |  |  |
| Earning assets: |  |  |  |  |  |  |
| Loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $3736269 | $57621 | 6.12% | $3790138 | $59411 | 6.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 269757 | 2722 | 4.00 | 278496 | 2910 | 4.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 4006026 | 60343 | 5.98 | 4068634 | 62321 | 6.09 |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 553151 | 4382 | 3.14 | 611032 | 4794 | 3.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 98608 | 680 | 2.74 | 89532 | 520 | 2.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 651759 | 5062 | 3.08 | 700564 | 5314 | 3.02 |
| Interest-bearing deposits | 9441 | 101 | 4.24 | 10820 | 150 | 5.55 |
| Federal funds sold | 33443 | 372 | 4.41 | 92171 | 1218 | 5.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 4700669 | 65878 | 5.56% | 4872189 | 69003 | 5.63% |
| Less: allowance for credit losses | 41576 |  |  | 37535 |  |  |
| Other assets | 408385 |  |  | 456540 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5067478 | $65878 |  | $5291194 | $69003 |  |
| Liabilities and Stockholders' Equity: |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| Money market accounts | $986100 | $7542 | 3.03% | $906842 | $8231 | 3.61% |
| Interest-bearing demand and NOW accounts | 1181655 | 6271 | 2.11 | 1414228 | 6888 | 1.94 |
| Savings accounts | 496256 | 389 | 0.31 | 518038 | 392 | 0.30 |
| Time deposits less than $100 | 341825 | 2923 | 3.39 | 687511 | 6279 | 3.63 |
| Time deposits $100 or more | 347723 | 3069 | 3.50 | 275786 | 4608 | 6.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 3353559 | 20194 | 2.39 | 3802405 | 26398 | 2.76 |
| Short-term borrowings | 29208 | 341 | 4.63 | 43895 | 550 | 4.98 |
| Long-term debt | 129524 | 1509 | 4.62 | 111804 | 1389 | 4.94 |
| Subordinated debt | 83149 | 1748 | 8.34 | 33000 | 443 | 5.34 |
| Junior subordinated debt | 8098 | 189 | 9.26 | 8000 | 260 | 12.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 249979 | 3787 | 6.01 | 196699 | 2642 | 5.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 3603538 | 23981 | 2.64% | 3999104 | 29040 | 2.89% |
| Noninterest-bearing deposits | 905385 |  |  | 713776 |  |  |
| Other liabilities | 55530 |  |  | 96177 |  |  |
| Stockholders' equity | 503025 |  |  | 482137 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5067478 |  |  | $5291194 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income/spread |  | $41897 | 2.92% |  | $39963 | 2.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin |  |  | 3.54% |  |  | 3.26% |
| Tax-equivalent adjustments: |  |  |  |  |  |  |
| Loans |  | $571 |  |  | $611 |  |
| Investments |  | 143 |  |  | 109 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments |  | $714 |  |  | $720 |  |

---

The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.

------

**Peoples Financial Services Corp.**

**Net Interest Margin (Unaudited)**

**(In thousands, fully taxable equivalent basis)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
|  | **Average**<br>**Balance**  | **Interest Income/**<br>**Expense** | **Yield/**<br>**Rate**  | **Average**<br>**Balance**  | **Interest Income/**<br>**Expense** | **Yield/**<br>**Rate**  |
| Assets: |  |  |  |  |  |  |
| Earning assets: |  |  |  |  |  |  |
| Loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $3714153 | $170292 | 6.13% | $3022988 | $127859 | 5.65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 277533 | 8478 | 4.08 | 242293 | 6476 | 3.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 3991686 | 178770 | 5.99 | 3265281 | 134335 | 5.50 |
| Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 549818 | 13201 | 3.21 | 501100 | 8620 | 2.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 90902 | 1686 | 2.48 | 87612 | 1459 | 2.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 640720 | 14887 | 3.11 | 588712 | 10079 | 2.29 |
| Interest-bearing deposits | 9935 | 310 | 4.17 | 9541 | 385 | 5.39 |
| Federal funds sold | 32863 | 1092 | 4.44 | 61635 | 2524 | 5.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 4675204 | 195059 | 5.58% | 3925169 | 147323 | 5.01% |
| Less: allowance for credit losses | 41830 |  |  | 27660 |  |  |
| Other assets | 399098 |  |  | 294186 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5032472 | $195059 |  | $4191695 | $147323 |  |
| Liabilities and Stockholders' Equity: |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| Money market accounts | $953679 | $21104 | 2.96% | $792391 | $22116 | 3.73% |
| Interest-bearing demand and NOW accounts | 1191733 | 18568 | 2.08 | 977722 | 16125 | 2.20 |
| Savings accounts | 498998 | 1127 | 0.30 | 450161 | 947 | 0.28 |
| Time deposits less than $100 | 389807 | 11142 | 3.82 | 475194 | 19420 | 5.46 |
| Time deposits $100 or more | 353753 | 9403 | 3.55 | 271765 | 4608 | 2.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 3387970 | 61344 | 2.42 | 2967233 | 63216 | 2.85 |
| Short-term borrowings | 28357 | 976 | 4.60 | 36349 | 1446 | 5.31 |
| Long-term debt | 109569 | 3897 | 4.76 | 54147 | 1928 | 4.76 |
| Subordinated debt | 57440 | 3217 | 7.49 | 33000 | 1330 | 5.38 |
| Junior subordinated debt | 8075 | 563 | 9.32 | 2692 | 260 | 12.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | 203441 | 8653 | 5.69 | 126188 | 4964 | 5.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 3591411 | 69997 | 2.61% | 3093421 | 68180 | 2.94% |
| Noninterest-bearing deposits | 892661 |  |  | 650446 |  |  |
| Other liabilities | 57466 |  |  | 59622 |  |  |
| Stockholders' equity | 490934 |  |  | 388206 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5032472 |  |  | $4191695 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income/spread |  | $125062 | 2.97% |  | $79143 | 2.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin |  |  | 3.58% |  |  | 2.69% |
| Tax-equivalent adjustments: |  |  |  |  |  |  |
| Loans |  | $1780 |  |  | $1360 |  |
| Investments |  | 354 |  |  | 306 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments |  | $2134 |  |  | $1666 |  |

---

The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%.

------

**Peoples Financial Services Corp.**

**Details of Net Interest Income and Net Interest Margin (Unaudited)**

**(In thousands, fully taxable equivalent basis)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| Three months ended | 2025 | 2025 | 2025 | 2024 | 2024 |
| Net interest income: |  |  |  |  |  |
| Interest income: |  |  |  |  |  |
| Loans, net: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | $57621 | $57459 | $55212 | $57048 | $59411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 2722 | 2914 | 2842 | 2834 | 2910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | 60343 | 60373 | 58054 | 59882 | 62321 |
| Investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 4382 | 4644 | 4175 | 4399 | 4794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 680 | 505 | 501 | 502 | 520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 5062 | 5149 | 4676 | 4901 | 5314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on interest-bearing balances in other banks | 101 | 96 | 113 | 113 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 372 | 435 | 285 | 1608 | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 65878 | 66053 | 63128 | 66504 | 69003 |
| Interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 20194 | 20303 | 20847 | 24718 | 26398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 341 | 410 | 225 | 474 | 550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 1509 | 1211 | 1177 | 1389 | 1389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | 1748 | 1026 | 443 | 444 | 443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debt | 189 | 188 | 186 | 267 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 23981 | 23138 | 22878 | 27292 | 29040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $41897 | $42915 | $40250 | $39212 | $39963 |
| Loans, net: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 6.12% | 6.22% | 6.05% | 6.04% | 6.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 4.00% | 4.14% | 4.11% | 4.05% | 4.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | 5.98% | 6.07% | 5.92% | 5.90% | 6.09% |
| Investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 3.14% | 3.45% | 3.05% | 3.23% | 3.12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 2.74% | 2.33% | 2.33% | 2.29% | 2.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 3.08% | 3.29% | 2.95% | 3.10% | 3.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing balances with banks | 4.24% | 4.19% | 4.09% | 4.93% | 5.55% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 4.41% | 4.46% | 4.45% | 4.94% | 5.26% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 5.56% | 5.68% | 5.50% | 5.51% | 5.63% |
| Interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 2.39% | 2.41% | 2.46% | 2.75% | 2.76% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 4.63% | 4.62% | 4.52% | 4.80% | 4.98% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 4.62% | 4.81% | 4.88% | 4.97% | 4.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | 8.34% | 7.40% | 5.44% | 5.35% | 5.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debt | 9.26% | 9.34% | 9.37% | 13.23% | 12.93% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2.64% | 2.60% | 2.58% | 2.88% | 2.89% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest spread | 2.92% | 3.08% | 2.92% | 2.62% | 2.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | 3.54% | 3.69% | 3.50% | 3.25% | 3.26% |

---

------

**Peoples Financial Services Corp.**

**Consolidated Balance Sheets (Unaudited)**

**(In thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| At period end | 2025 | 2025 | 2025 | 2024 | 2024 |
| Assets: |  |  |  |  |  |
| Cash and due from banks | $62133 | $60173 | $60125 | $47029 | $97090 |
| Interest-bearing balances in other banks | 9492 | 9646 | 9196 | 8593 | 10286 |
| Federal funds sold | 108298 | 105920 | 7781 | 80229 | 178093 |
| Investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available for sale | 534521 | 505181 | 503043 | 526329 | 562486 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held to maturity | 73286 | 75137 | 76689 | 78184 | 79861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments carried at fair value | 2473 | 2494 | 2500 | 2430 | 3921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 610280 | 582812 | 582232 | 606943 | 646268 |
| Loans held for sale | 816 | 547 | 420 |  | 803 |
| Loans | 4016367 | 3997525 | 3991539 | 3993505 | 4069683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: allowance for credit losses | 39843 | 40890 | 41054 | 41776 | 39341 |
| Net loans | 3976524 | 3956635 | 3950485 | 3951729 | 4030342 |
| Goodwill | 75986 | 75986 | 75986 | 75986 | 76958 |
| Premises and equipment, net | 77009 | 76896 | 72492 | 73283 | 75877 |
| Bank owned life insurance | 88175 | 87635 | 87953 | 87429 | 87401 |
| Deferred tax assets | 30025 | 31647 | 32628 | 35688 | 33078 |
| Accrued interest receivable | 16995 | 15854 | 16436 | 15632 | 17979 |
| Other intangible assets, net | 29239 | 30778 | 32488 | 34197 | 35907 |
| Other assets | 74664 | 73350 | 71136 | 74919 | 70056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5159636 | $5107879 | $4999358 | $5091657 | $5360138 |
| Liabilities: |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $912044 | $899597 | $901398 | $935516 | $927864 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 3377687 | 3387752 | 3415529 | 3472036 | 3710000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4289731 | 4287349 | 4316927 | 4407552 | 4637864 |
| Short-term borrowings | 76310 | 76340 | 14840 | 15900 | 37346 |
| Long-term debt | 137029 | 103449 | 88403 | 98637 | 111489 |
| Subordinated debt | 83111 | 83164 | 33000 | 33000 | 33000 |
| Junior subordinated debt | 8114 | 8088 | 8063 | 8039 | 8015 |
| Accrued interest payable | 7976 | 4640 | 5439 | 5503 | 6829 |
| Other liabilities | 48105 | 50753 | 50832 | 54076 | 50544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 4650376 | 4613783 | 4517504 | 4622707 | 4885087 |
| Stockholders' equity: |  |  |  |  |  |
| Common stock | 20015 | 20015 | 20014 | 19995 | 19993 |
| Capital surplus | 250735 | 250468 | 250488 | 250695 | 250578 |
| Retained earnings | 267686 | 258601 | 247806 | 238955 | 239021 |
| Accumulated other comprehensive loss | (29176) | (34988) | (36454) | (40695) | (34541) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 509260 | 494096 | 481854 | 468950 | 475051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5159636 | $5107879 | $4999358 | $5091657 | $5360138 |

---

------

**Peoples Financial Services Corp.**

**Loan and Asset Quality Data (Unaudited)**

**(In thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| At period end  | 2025 | 2025 | 2025 | 2024 | 2024 |
| Commercial |  |  |  |  |  |
| &nbsp;&nbsp;Taxable | $597163 | $595042 | $570966 | $556630 | $616369 |
| &nbsp;&nbsp;Non-taxable | 263921 | 278026 | 282031 | 279390 | 273710 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 861084 | 873068 | 852997 | 836020 | 890079 |
| Real estate |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | 2278745 | 2252574 | 2275241 | 2294113 | 2309588 |
| &nbsp;&nbsp;Residential | 588520 | 573864 | 560067 | 551383 | 550590 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 2867265 | 2826438 | 2835308 | 2845496 | 2860178 |
| Consumer |  |  |  |  |  |
| &nbsp;&nbsp;Indirect Auto | 100298 | 104618 | 108819 | 117914 | 130380 |
| &nbsp;&nbsp;Consumer Other | 14212 | 13929 | 14209 | 14955 | 15580 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 114510 | 118547 | 123028 | 132869 | 145960 |
| Equipment Financing | 173508 | 179472 | 180206 | 179120 | 173466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4016367 | $3997525 | $3991539 | $3993505 | $4069683 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| At quarter end | 2025 | 2025 | 2025 | 2024 | 2024 |
| Nonperforming assets: |  |  |  |  |  |
| &nbsp;&nbsp;Nonaccrual/restructured loans | $14386 | $17390 | $23002 | $22499 | $20949 |
| &nbsp;&nbsp;Accruing loans past due 90 days or more | 886 | 72 | 655 | 458 | 569 |
| &nbsp;&nbsp;Foreclosed assets | 1541 |  | 27 | 27 | 27 |
| Total nonperforming assets | $16813 | $17462 | $23684 | $22984 | $21545 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| Three months ended | 2025 | 2025 | 2025 | 2024 | 2024 |
| Allowance for credit losses: |  |  |  |  |  |
| Beginning balance | $40890 | $41054 | $41776 | $39341 | $23123 |
| &nbsp;&nbsp;Merger-related adjustments - Non PCD Loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;Merger-related adjustments - PCD Loans |  |  |  |  | 1841 |
| &nbsp;&nbsp;Charge-offs | 491 | 1151 | 1233 | 1108 | 534 |
| &nbsp;&nbsp;Recoveries | 282 | 1226 | 311 | 174 | 453 |
| &nbsp;&nbsp;(Credit to) provision for credit losses | (838) | (239) | 200 | 3369 | 130 |
| Ending balance | $39843 | $40890 | $41054 | $41776 | $39341 |

---

------

**Peoples Financial Services Corp.**

**Deposit and Liquidity Detail (Unaudited)**

**(In thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| At period end  | 2025 | 2025 | 2025 | 2024 | 2024 |
| Interest-bearing deposits: |  |  |  |  |  |
| &nbsp;&nbsp;Money market accounts | $1026725 | $971136 | $967661 | $936239 | $1018575 |
| &nbsp;&nbsp;Interest-bearing demand and NOW accounts | 1186342 | 1200911 | 1177507 | 1238853 | 1229083 |
| &nbsp;&nbsp;Savings accounts | 493957 | 500680 | 502851 | 492180 | 509412 |
| &nbsp;&nbsp;Time deposits less than $250 | 497131 | 543257 | 599127 | 620725 | 824791 |
| &nbsp;&nbsp;Time deposits $250 or more | 173532 | 171768 | 168383 | 184039 | 128139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 3377687 | 3387752 | 3415529 | 3472036 | 3710000 |
| Noninterest-bearing deposits | 912044 | 899597 | 901398 | 935516 | 927864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $4289731 | $4287349 | $4316927 | $4407552 | $4637864 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| At period end | Amount | Percent of Total | Number of accounts | Average Balance |
| Deposit Detail: |  |  |  |  |
| Retail | $1756627 | 40.9% | 94579 | $19 |
| Commercial | 1560214 | 36.4 | 18475 | 84 |
| Municipal | 810678 | 18.9 | 2512 | 323 |
| Brokered | 162212 | 3.8 | 14 | 11587 |
| Total Deposits | $4289731 | 100.0% | 115580 | $37 |
| Uninsured | $1387652 | 32.3% |  |  |
| Insured | 2902079 | 67.7 |  |  |
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| At period end | Amount | Percent of Total | Number of accounts | Average Balance |
| Deposit Detail: |  |  |  |  |
| Retail | $1779729 | 40.4% | 98583 | $18 |
| Commercial | 1538757 | 34.9 | 18675 | 82 |
| Municipal | 832665 | 18.9 | 2427 | 343 |
| Brokered | 256401 | 5.8 | 28 | 9157 |
| Total Deposits | $4407552 | 100.0% | 119713 | $37 |
| Uninsured | $1381492 | 31.3% |  |  |
| Insured | 3026060 | 68.7 |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | Total Available |
| At September 30, 2025 | Total Available | Outstanding | for Future Liquidity |
| &nbsp;&nbsp;FHLB advances (1) | $1666431 | $606906 | $1059525 |
| &nbsp;&nbsp;Federal Reserve - Discount Window | 388269 |  | 388269 |
| &nbsp;&nbsp;Correspondent bank lines of credit | 18000 |  | 18000 |
| &nbsp;&nbsp;Other sources of liquidity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposits | 773945 | 162212 | 611733 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unencumbered securities | 184206 |  | 184206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total sources of liquidity | $3030851 | $769118 | $2261733 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Outstanding balance of FHLB advances includes letters of credit used to collateralize public fund deposits.

------

**Peoples Financial Services Corp.**

**Consolidated Balance Sheets (Unaudited)**

**(In thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| Average quarterly balances | 2025 | 2025 | 2025 | 2024 | 2024 |
| Assets: |  |  |  |  |  |
| Loans, net: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable | $3736269 | $3707650 | $3698124 | $3757273 | $3790138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 269757 | 282406 | 280555 | 278429 | 278496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | 4006026 | 3990056 | 3978679 | 4035702 | 4068634 |
| Investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable | 553151 | 540424 | 555910 | 541526 | 611032 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 98608 | 86899 | 87072 | 87419 | 89532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 651759 | 627323 | 642982 | 628945 | 700564 |
| Interest-bearing balances with banks | 9441 | 9186 | 11197 | 9116 | 10820 |
| Federal funds sold | 33443 | 39084 | 25979 | 129517 | 92171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 4700669 | 4665649 | 4658837 | 4803280 | 4872189 |
| Other assets | 366809 | 348685 | 349840 | 400179 | 419005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5067478 | $5014334 | $5008677 | $5203459 | $5291194 |
| Liabilities and stockholders' equity: |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | $3353559 | $3373916 | $3437355 | $3573321 | $3607405 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | 905385 | 897212 | 875053 | 904274 | 908776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4258944 | 4271128 | 4312408 | 4477595 | 4516181 |
| Short-term borrowings | 29208 | 35587 | 20176 | 39319 | 43895 |
| Long-term debt | 129524 | 101066 | 97769 | 111135 | 111804 |
| Subordinated debt | 83149 | 55622 | 33000 | 33000 | 33000 |
| Junior subordinated debt | 8098 | 8075 | 8050 | 8026 | 8000 |
| Other liabilities | 55530 | 52608 | 58018 | 56445 | 96177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 4564453 | 4524086 | 4529421 | 4725520 | 4809057 |
| Stockholders' equity | 503025 | 490248 | 479256 | 477939 | 482137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5067478 | $5014334 | $5008677 | $5203459 | $5291194 |

---

------

**Peoples Financial Services Corp.**

**Reconciliation of Non-GAAP Financial Measures (Unaudited)** 

**(In thousands, except share and per share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Sept 30 | June 30 | Mar 31 | Dec 31 | Sept 30 |
| Three months ended | 2025 | 2025 | 2025 | 2024 | 2024 |
| **Core net income per share:** |  |  |  |  |  |
| Net income (loss) GAAP | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  |  |  |  | 1885 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 3 | 14 | 34 | 1089 | 1270 |
| Core net income | $15259 | $17008 | $15129 | $9988 | $16489 |
| Average common shares outstanding - diluted | 10086915 | 10082260 | 10043186 | 10051337 | 10044449 |
| Core net income per diluted share | $1.51 | $1.69 | $1.51 | $0.99 | $1.64 |
| **Tangible book value:** |  |  |  |  |  |
| Total stockholders' equity | $509260 | $494096 | $481854 | $468950 | $475051 |
| &nbsp;&nbsp;&nbsp;Less: Goodwill | 75986 | 75986 | 75986 | 76325 | 76958 |
| &nbsp;&nbsp;&nbsp;Less: Other intangible assets, net | 29239 | 30778 | 32488 | 34197 | 35907 |
| Total tangible stockholders' equity | $404035 | $387332 | $373380 | $358428 | $362186 |
| Common shares outstanding | 9994595 | 9994696 | 9995483 | 9990724 | 9994648 |
| Tangible book value per share | $40.43 | $38.75 | $37.35 | $35.88 | $36.24 |
| **Core return on average stockholders' equity:** |  |  |  |  |  |
| Net income (loss) GAAP | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  |  |  |  | 1885 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 3 | 14 | 34 | 1089 | 1270 |
| Core net income | $15259 | $17008 | $15129 | $9988 | $16489 |
| Average stockholders' equity | $503025 | $490248 | $479256 | $477939 | $482137 |
| Core return on average stockholders' equity | 12.03% | 13.92% | 12.80% | 8.31% | 13.61% |
| **Return on average tangible stockholders' equity:** |  |  |  |  |  |
| Net income (loss) GAAP | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Average stockholders' equity | $503025 | $490248 | $479256 | $477939 | $482137 |
| &nbsp;&nbsp;&nbsp;Less: average intangibles | 106111 | 106764 | 109386 | 112399 | 113032 |
| Average tangible stockholders' equity | $396914 | $383484 | $369870 | $365540 | $369105 |
| Return on average tangible stockholders' equity | 15.24% | 17.73% | 16.46% | 6.62% | (4.67)% |
| **Core return on average tangible stockholders' equity:** |  |  |  |  |  |
| Net income (loss) GAAP | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  |  |  |  | 1885 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 3 | 14 | 34 | 1089 | 1270 |
| Core net income | $15259 | $17008 | $15129 | $9988 | $16489 |
| Average stockholders' equity | $503025 | $490248 | $479256 | $477939 | $482137 |
| &nbsp;&nbsp;&nbsp;Less: average intangibles | 106111 | 106764 | 109386 | 112399 | 113032 |
| Average tangible stockholders' equity | $396914 | $383484 | $369870 | $365540 | $369105 |
| Core return on average tangible stockholders' equity | 15.25% | 17.79% | 16.59% | 10.87% | 17.77% |
| **Core return on average assets:** |  |  |  |  |  |
| Net income (loss) GAAP | $15246 | $16956 | $15009 | $6087 | $(4337) |
| Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  |  |  |  | 1885 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 3 | 14 | 34 | 1089 | 1270 |
| Core net income | $15259 | $17008 | $15129 | $9988 | $16489 |
| Average assets | $5067478 | $5014334 | $5008677 | $5203459 | $5291194 |
| Core return on average assets | 1.19% | 1.36% | 1.23% | 0.76% | 1.24% |
| **Pre-provision net revenue (PPNR) per share:** |  |  |  |  |  |
| Income (Loss) before taxes (GAAP) | $18844 | $20421 | $18251 | $5815 | $(4994) |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses | (838) | (239) | 200 | 3369 | 130 |
| &nbsp;&nbsp;&nbsp;Add: Provision for (credit to) credit losses on unfunded commitments | 252 | 172 | (202) | 452 | (785) |
| PPNR (non-GAAP) | $18258 | $20354 | $18249 | $9636 | $8679 |
| Average common shares outstanding-diluted | 10086915 | 10082260 | 10043186 | 10051337 | 10044449 |
| PPNR per share (non-GAAP) | $1.81 | $2.02 | $1.82 | $0.96 | $0.86 |
| **Core pre-provision net revenue (PPNR) per share:** |  |  |  |  |  |
| Income (Loss) before taxes (GAAP) | $18844 | $20421 | $18251 | $5815 | $(4994) |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 16 | 66 | 154 | 4990 | 9653 |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  |  |  |  | 14328 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses | (838) | (239) | 200 | 3369 | 130 |
| &nbsp;&nbsp;&nbsp;Add: Provision for (credit to) credit losses on unfunded commitments | 252 | 172 | (202) | 452 | (785) |
| Core PPNR (non-GAAP) | $18274 | $20420 | $18403 | $14626 | $18332 |
| Average common shares outstanding-diluted | 10086915 | 10082260 | 10043186 | 10051337 | 10044449 |
| Core PPNR per share (non-GAAP) | $1.81 | $2.03 | $1.83 | $1.46 | $1.83 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Current year quarters and fourth quarter 2024 tax adjustments use a rate of 21.8%, prior quarters use the effective tax rate for the quarter.

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**Peoples Financial Services Corp.**

**Reconciliation of Non-GAAP Financial Measures (Unaudited)** 

**(In thousands, except share and per share data)**

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| | | |
|:---|:---|:---|
|  | Sept 30 | Sept 30 |
| Nine months ended | 2025 | 2024 |
| **Core net income per share:** |  |  |
| Net income GAAP | $47211 | $2411 |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  | 1307 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 236 | 11210 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 51 | 1023 |
| &nbsp;&nbsp;&nbsp;Core net income | $47396  | $25619  |
| Average common shares outstanding - diluted | 10070947 | 8094036 |
| Core net income per diluted share | $4.71 | $3.17 |
| **Core return on average stockholders' equity:** |  |  |
| Net income GAAP | $47211 | $2411 |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  | 1307 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 236 | 11210 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 51 | 1023 |
| Core net income | $47396  | $25619  |
| Average stockholders' equity | 490934 | 388206 |
| Core return on average stockholders' equity | 12.91% | 8.82% |
| **Return on average tangible stockholders' equity:** |  |  |
| Net income GAAP | $47211 | $2411 |
| Average stockholders' equity | 490934 | 388206 |
| &nbsp;&nbsp;&nbsp;Less: average intangibles | 107736 | 79924 |
| Average tangible stockholders' equity | $383198 | $308282 |
| Return on average tangible stockholders' equity | 16.47% | 1.04% |
| **Core return on average tangible stockholders' equity:** |  |  |
| Net income GAAP | $47211 | $2411 |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  | 1307 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 236 | 11210 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 51 | 1023 |
| Core net income | $47396  | $25619  |
| Average stockholders' equity | 490934 | 388206 |
| &nbsp;&nbsp;&nbsp;Less: average intangibles | 107736 | 79924 |
| Average tangible stockholders' equity | $383198 | $308282 |
| Core return on average tangible stockholders' equity | 16.54% | 11.10% |
| **Core return on average assets:** |  |  |
| Net income GAAP | $47211 | $2411 |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  | 1307 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 236 | 11210 |
| &nbsp;&nbsp;&nbsp;Less: Acquisition related expenses tax adjustment | 51 | 1023 |
| Core net income | $47396  | $25619  |
| Average assets | 5032472  | 4191695  |
| Core return on average assets | 1.26% | 0.82% |
| **Pre-provision net revenue (PPNR) per share:** |  |  |
| Income before taxes (GAAP) | $57516 | $2653 |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Less: ACL provision for FNCB acquired legacy loans tax adjustment |  | 1307 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses | (877) | 1434 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses on unfunded commitments | 222 | (495) |
| PPNR (non-GAAP) | $56861 | $17603 |
| Average common shares outstanding-diluted | 10070947 | 8094036 |
| PPNR per share (non-GAAP) | $5.65 | $2.17 |
| **Core pre-provision net revenue (PPNR) per share:** |  |  |
| Income before taxes (GAAP) | $57516 | $2653 |
| &nbsp;&nbsp;&nbsp;Add: ACL provision for FNCB acquired legacy loans |  | 14328 |
| &nbsp;&nbsp;&nbsp;Add: Acquisition related expenses | 236 | 11210 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses | (877) | 1434 |
| &nbsp;&nbsp;&nbsp;Add: (Credit to) provision for credit losses on unfunded commitments | 222 | (495) |
| Core PPNR (non-GAAP) | $57097 | $29130 |
| Average common shares outstanding-diluted | 10070947 | 8094036 |
| Core PPNR per share (non-GAAP) | $5.67 | $3.60 |

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**Peoples Financial Services Corp.**

**Reconciliation of Non-GAAP Financial Measures (Unaudited)**

**(In thousands, except share and per share data)** 

The following tables reconcile the non-GAAP financial measures of FTE net interest income for the three and nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
| Three months ended September 30 | **2025** | **2024** |
| Interest income (GAAP) | $65164 | $68284 |
| Adjustment to FTE | 714 | 720 |
| Interest income adjusted to FTE (non-GAAP) | 65878 | 69004 |
| Interest expense | 23981 | 29040 |
| Net interest income adjusted to FTE (non-GAAP) | $41897 | $39964 |
| Nine months ended September 30 | **2025** | **2024** |
| Interest income (GAAP) | $192925 | $145657 |
| Adjustment to FTE | 2134 | 1666 |
| Interest income adjusted to FTE (non-GAAP) | 195059 | 147323 |
| Interest expense | 69997 | 68179 |
| Net interest income adjusted to FTE (non-GAAP) | $125062 | $79144 |

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The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three and nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
| Three months ended September 30 | **2025** | **2024** |
| Efficiency ratio (non-GAAP): |  |  |
| Noninterest expense (GAAP) | $28678 | $35499 |
| Less: Amortization of intangible assets expense | 1515 | 1665 |
| Less: Acquisition related expenses | 16 | 9653 |
| Noninterest expense (non-GAAP) | 27147 | 24181 |
| Net interest income (GAAP) | 41183 | 39244 |
| Plus: Taxable equivalent adjustment | 714 | 720 |
| Noninterest income (GAAP) | 5501 | 5719 |
| Less: Net (losses) gains on equity securities | (21) | 175 |
| Less: (Losses) gains on sale of fixed assets | (615) | (3) |
| Net interest income (FTE) plus noninterest income (non-GAAP) | $48034 | $45511 |
| Efficiency ratio (non-GAAP) | 56.52% | 53.13% |
| Nine months ended September 30 | **2025** | **2024** |
| Efficiency ratio (non-GAAP): |  |  |
| Noninterest expense (GAAP) | $84293 | $71728 |
| Less: Amortization of intangible assets expense | 4882 | 1665 |
| Less: Acquisition related expenses | 236 | 11210 |
| Noninterest expense (non-GAAP) | 79175 | 58853 |
| Net interest income (GAAP) | 122928 | 77478 |
| Plus: Taxable equivalent adjustment | 2134 | 1666 |
| Noninterest income (GAAP) | 18004 | 12665 |
| Less: Net gains (losses) on equity securities | 43 | 155 |
| Less: Gains on sale of fixed assets | 65 | 1 |
| Net interest income (FTE) plus noninterest income (non-GAAP) | $142958 | $91653 |
| Efficiency ratio (non-GAAP) | 55.38% | 64.21% |

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