Peoples Financial Services Corp. reported net income of $6.1 million, or $0.61 per diluted share, for the three months ended December 31, 2024. This represents an increase from the net loss of $4.3 million, or $0.43 per diluted share, reported in the prior quarter. The improvement was primarily due to lower provisions for credit losses and reduced noninterest expenses.
For the full year 2024, net income was $8.5 million, or $0.99 per diluted share, compared to $27.4 million, or $3.83 per diluted share, for 2023. The decrease in full-year net income was attributed to $30.5 million in non-recurring charges, including $16.2 million of acquisition expenses and a $14.3 million provision for credit losses on non-PCD loans related to the FNCB merger.
The tax-equivalent net interest margin for the twelve months ended December 31, 2024, was 2.84%, an increase of 30 basis points over the prior year's 2.54%. Tax-equivalent net interest income for the full year increased by $29.7 million, or 33.5%, to $118.4 million, driven by increased earning assets from the FNCB merger.
Non-recurring acquisition related expenses decreased to $5.0 million in Q4 2024 from $24.0 million in Q3 2024, indicating a reduction in merger-related costs. The total cost of deposits decreased by 13 basis points to 2.20% during the fourth quarter, reflecting management's actions to lower deposit costs in response to federal funds rate cuts.
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