Peoples Financial Services (PFIS) investor relations material

Executive summary

• Net income for Q2 2026 was $14.8 million ($1.48 per diluted share), down from $17.0 million ($1.68 per share) in Q2 2025, mainly due to higher provision for credit losses and increased noninterest expenses, partially offset by higher net interest and noninterest income.

• For the six months ended June 30, 2026, net income was $29.6 million ($2.95 per share), compared to $32.0 million ($3.18 per share) in the prior year period.

• Robust loan and deposit growth, with total loans up $305.3 million (7.6%) and deposits up $221.5 million (5.2%) year-over-year.

• The merger with FNCB completed in July 2024 contributed to increased scale, diversified earnings, and improved liquidity.

• A branch property sale/leaseback in Q2 2026 resulted in a $0.3 million gain.

Financial highlights

• Total assets reached $5.44 billion, with net loans at $4.26 billion and deposits at $4.51 billion as of June 30, 2026.

• Net interest income for Q2 2026 was $45.6 million, up $3.4 million year-over-year; net interest margin (FTE) rose to 3.82%.

• Noninterest income for Q2 2026 was $6.5 million, up $0.3 million year-over-year; noninterest expense was $30.6 million, up $2.3 million.

• Tangible common equity to tangible assets increased to 8.16% quarter-over-quarter.

• Allowance for credit losses on loans was $42.3 million, or 0.98% of loans; nonperforming assets to total assets were 0.27%.

Outlook and guidance

• Management expects continued uncertainty in economic conditions due to ongoing geopolitical events and FOMC rate policy.

• The company remains asset-sensitive, with rising rates expected to benefit net interest income, but a sustained falling rate environment poses risk.

• Liquidity and capital positions are considered strong, with ample borrowing capacity and a diversified deposit base.

• Focus remains on maintaining strong asset quality and capital ratios amid evolving market conditions.

• Continued investment in franchise and balance sheet expansion expected to drive future performance.