Peoples Financial Services Corp. reported a net loss of $4.3 million, or $0.43 per diluted share, for the three months ended September 30, 2024. This compares to net income of $6.7 million, or $0.95 per diluted share, for the comparable period of 2023. The net loss was primarily due to non-recurring charges related to the July 1, 2024 FNCB merger.
Net interest income increased by $18.0 million to $39.2 million, and the tax-equivalent net interest margin increased by 97 basis points to 3.26%. This growth was driven by the higher level of earning assets from the FNCB merger and a $3.7 million net accretion impact from purchase accounting marks.
Non-recurring charges totaled $24.0 million, including a $14.3 million provision for credit losses on non-purchase credit deteriorated loans acquired in the FNCB merger and $9.6 million in acquisition-related expenses. Excluding these non-recurring items, core net income was $16.5 million, or $1.64 per diluted share, for the quarter, compared to $7.5 million, or $1.05 per diluted share, in the prior year.
Total assets stood at $5.4 billion, loans at $4.1 billion, and deposits at $4.6 billion as of September 30, 2024, reflecting the significant expansion from the FNCB merger. Loan growth for the nine months ended September 30, 2024, was $1.2 billion, or 42.8%.
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