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.

• Decline in net income was driven by higher provision for credit losses, increased noninterest and income tax expenses, partially offset by higher net interest and noninterest income.

• 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.

• Annualized return on average assets was 1.13% for Q2 2026 (vs. 1.36% in Q2 2025); annualized return on average equity was 11.10% (vs. 13.87%).

Financial highlights

• Total assets grew to $5.4 billion at June 30, 2026, up $170 million from December 31, 2025, driven by strong loan growth.

• Loans, net increased $235.9 million (11.7% annualized) to $4.3 billion; investment securities decreased $57.6 million to $529.6 million.

• Total deposits rose $74.8 million to $4.5 billion; interest-bearing deposits increased $82.7 million, while noninterest-bearing deposits fell $8.0 million.

• Net interest income for Q2 2026 was $45.6 million, up $3.4 million year-over-year; for the six months, net interest income was $88.5 million, up from $81.7 million.

• Noninterest income for Q2 2026 was $6.5 million, up $0.3 million, including a $0.3 million gain on a branch sale.

• Noninterest expense for Q2 2026 was $30.6 million, up $2.3 million, mainly due to higher salaries, benefits, and occupancy costs.

• Provision for credit losses was $3.1 million in Q2 2026, up from a $0.2 million benefit in Q2 2025; six-month provision was $4.5 million, up from a negligible benefit.

• Book value per share rose to $53.56 and tangible book value per share to $43.51 at June 30, 2026.

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.

• Management remains focused on prudent risk management, operational efficiency, and long-term shareholder value.

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