Peoples Financial Services (PFIS) investor relations material

Executive summary

• Q3 2026 net income rose 25.5% YoY to $19.1M, or $1.90 diluted EPS, as higher net interest income and a $1.1M credit-loss benefit outweighed higher expenses.

• Nine-month net income was $48.7M, or $4.85 diluted EPS, versus $47.2M and $4.69 in 2025; loan growth supported higher net interest income.

Financial highlights

• Q3 net interest income rose to $47.3M from $41.2M YoY; noninterest income was $5.7M versus $5.5M, and noninterest expense increased to $31.7M from $28.7M.

• Nine-month net interest income was $135.8M versus $122.9M; noninterest income was $19.1M versus $18.0M, and noninterest expense was $92.2M versus $84.3M.

• Assets increased 5.5% to $5.6B from year-end 2025; loans rose 7.3% to $4.4B and deposits grew $382.4M YoY to $4.7B.

• Q3 income tax expense was $3.3M; purchased 2025 federal tax credits reduced expense by $1.2M and lowered the effective tax rate to 14.6%.

• Nine-month cash from operating activities was $37.0M; investing used $232.4M and financing provided $231.4M, with cash and equivalents at $305.0M.

Outlook and guidance

• Liquidity was assessed as sufficient for current and anticipated obligations; remaining capacity included $1.1B at FHLB, $587.6M at the Federal Reserve Discount Window and $27.0M in correspondent lines.

• Interest-rate simulations projected NII up 3.3% under an instantaneous +100 bps shift and down 3.8% under a -100 bps shift for the 12 months ending September 30, 2027.

• Sustained high rates or further increases could pressure NII if deposit and wholesale funding costs rise faster than asset yields; a sustained rate decline was the greatest modeled longer-term NII risk.