Peoples Financial Services (PFIS) Investor Presentation summary

Corporate profile and management

• Total assets reached $5.36 billion, with $4.64 billion in deposits and $4.07 billion in loans as of September 30, 2024.

• Operates 39 community branches across Pennsylvania, New Jersey, and New York, ranking as the 7th largest bank headquartered in Pennsylvania.

• Leadership team includes experienced executives with decades in banking, many joining after the FNCB merger.

• Listed on NASDAQ under PFIS, with a market cap of $469 million and annual dividend yield of 5.27%.

Strategic transactions and merger impact

• Completed a transformational merger with FNCB Bancorp, issuing 2.93 million shares and valuing the deal at $133.7 million at close.

• Achieved 30% annual cost savings and significant EPS accretion, with GAAP EPS up 52.7% and tangible book value per share supported by higher accretion.

• Purchase accounting adjustments included increased loan fair value marks and core deposit intangibles, and liquidation of $241 million in investments to pay off borrowings.

• Projected total pre-tax income impact from accretion and amortization is $22.97 million, with net NII impact of $60.6 million over the accretion period.

Financial performance and trends

• Net interest income for 3Q24 was $39.2 million, with core net income at $16.5 million and core EPS at $1.64.

• For the nine months ended September 30, 2024, net interest income rose 16.5% year-over-year, but reported net income dropped 89.8% due to merger-related provisions and expenses.

• Net interest margin improved to 3.26% in 3Q24, and allowance for credit losses coverage ratio increased to 0.97%.

• Noninterest expense rose 42.8% year-over-year, reflecting merger integration, increased headcount, and IT upgrades.