Peoples Financial Services reported higher third-quarter earnings, with growth in net interest and non-interest income lifting profit from a year earlier. The Pennsylvania-based bank holding company also recorded growth in loans and deposits and a decline in nonperforming assets.
For the nine months through September, earnings were modestly higher than a year ago. The company said that higher income was partly offset by increased expenses; credit-loss effects also differed between the quarter and the year-to-date period.
Earnings and returns
– Third-quarter net income rose 25.5% to $19.1 million from $15.2 million a year earlier. Diluted earnings per share increased to $1.90 from $1.51.
– Compared with the second quarter of 2026, net income increased $4.3 million, or 29.2%, from $14.8 million.
– For the first nine months, net income reached $48.7 million, up 3.1% from $47.2 million. Diluted earnings per share rose to $4.85 from $4.69.
– Annualized return on average assets was 1.41% in the third quarter, versus 1.19% a year earlier; return on average equity was 14.07%, up from 12.02%. For the nine-month period, those returns were 1.23% and 12.16%, respectively, compared with 1.25% and 12.86% a year earlier.
– The company attributed the earnings increase in both periods mainly to higher net interest income and non-interest income, partly offset by higher non-interest expenses. The third quarter included a benefit related to credit losses, while the nine-month period included a provision that partly offset earnings growth.
Lending, deposits and credit quality
– Total loans reached $4.4 billion at September 30, up $60.7 million from the end of June, equivalent to 5.6% annualized growth. Loans were up $347.1 million, or 8.6% annualized, from a year earlier.
– Deposits totaled $4.7 billion, an increase of $163.3 million from June 30, or 14.4% annualized. They were $382.4 million higher than a year earlier, an increase of 8.9%.
– Nonperforming assets fell to $10.3 million from $14.7 million at the end of June and $16.8 million a year earlier. They represented 0.24% of loans, net, and foreclosed assets, down from 0.34% and 0.42%, respectively.
Margins and per-share value
– Net interest margin on a fully taxable-equivalent basis was 3.80% in the third quarter, up 26 basis points from a year earlier but down 2 basis points from the second quarter. For the first nine months, it was 3.77%, up 19 basis points from the same period in 2025.
– Book value per common share rose to $52.87 from $50.95 a year earlier. Tangible book value per share, a non-GAAP measure, increased to $42.95 from $40.43.
The results show stronger quarterly profitability alongside expanding loans and deposits and lower nonperforming assets. The margin comparison was mixed: it improved year over year but edged down from the prior quarter. The company also uses non-GAAP measures, including tangible book value and fully taxable-equivalent net interest margin, alongside its GAAP results.