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Stocks On The Run: Peoples Financial Services Corp (NASDAQ:PFIS)

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On Monday, Shares of Peoples Financial Services Corp (NASDAQ:PFIS), added 0.32% and closed at $44.13 in the last trading session. The last trading range of the stock ranges between $44.13 and $45.08.

Peoples Financial Services Corp. (“Peoples”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, recently stated unaudited financial results at and for the three months finished March 31, 2017.  Peoples stated net income of $4.80M, or $0.650 per share for the 1st– quarter of 2017, contrast to $4.90M, or $0.660 per share for the comparable period of 2016.

Our results for the three months finished March 31, 2017 did not comprise any goods we consider to be non-core, however our results for the corresponding period in 2016 do include non-core items. Core net income, which we have defined to keep out net gains on the sale of investment securities accessible-for-sale, net of tax, for the quarter finished March 31, 2017 was $4.80M, a $75.00 thousand boost from $4.70M for the similar period in 2016. Core net income per share for the quarter ended March 31, 2017 was $0.650, contrast to $0.640 for the similar period in 2016.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the USA (“GAAP”), Peoples routinely supplements its evaluation with an study of certain non-GAAP financial measures, such as tangible stockholders’ equity and core net income ratios. The stated results for 2016 built-in herein contain things which Peoples considers non-core, namely net gains on sales of investment securities obtainable-for-sale. Peoples trusts the stated non-GAAP financial measures give data useful to investors in understanding its operating execution and trends. Where non-GAAP disclosures are utilized a reconciliation to the comparable GAAP measure is offered in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

NOTABLES:

Loans, net grew $26.90M, or 7.10 percent annualized in the first quarter of 2017.

Deposits grew $26.80M or 6.80 percent annualized in the first quarter of 2017.

Book value per share enhanced to $35.070 at March 31, 2017 from $34.710 at December 31, 2016, and $33.980 at March 31, 2016.

Tangible book value per share enhanced to $25.970 at March 31, 2017 from $25.570 at December 31, 2016, and $24.730 at March 31, 2016.

Tax-equivalent net interest margin raised 6.00 basis points in the first quarter of 2017 to 3.730 percent, contrast to 3.670 percent for the quarter finished December 31, 2016, and decreased 8.00 basis points contrast to 3.810 percent for the quarter finished March 31, 2016.

Tax-equivalent net interest income raised to $16.70M for the first quarter of 2017 contrast to $16.60M for the final quarter of 2016, and $15.80M for the first quarter of 2016.

Opened a regional business center on Emrick Boulevard, Bethlehem, PA serving the Lehigh Valley.

The allowance for loan losses to loans, net raised to 1.090 percent at March 31, 2017, from 1.04 percent at December 31, 2016, and one percent at March 31, 2016.

INCOME STATEMENT REVIEW:

The tax-equivalent net interest margin for the quarter finished March 31, was 3.730 percent in 2017, contrast to 3.810 percent in 2016. Loan accretion included in loan interest income for the quarter finished March 31, 2017 was $187.00 thousand, resulting in a boost in the tax-equivalent net interest margin of 4.00 basis points. Comparatively, loan accretion included in loan interest income for the quarter finished March 31, 2016 was $215.00 thousand, resulting in a boost in the tax-equivalent net interest margin of 5.00 basis points.

Tax-equivalent net interest income for the quarter finished March 31, raised $0.9.0M to $16.70M in 2017 from $15.80M in 2016. The boost in tax equivalent net interest income was mainly because of a $137.30M boost in average interest-bearing assets for the quarter finished March 31, 2017 when contrast to the similar period in 2016. The tax-equivalent yield on the loan portfolio dcreased to 4.400 percent for the quarter finished March 31, 2017 contrast to 4.520 percent for the comparable period in 2016. Loans, net averaged $1.50B for the quarter finished March 31, 2017 and $1.40B for the comparable period in 2016. For the quarter finished March 31, the tax-equivalent yield on total investments raised to 2.890 percent in 2017 from 2.860 percent in 2016. Average investments totaled $274.90 M in the first quarter of 2017 and $2872 M in the first quarter of 2016. Average interest-bearing liabilities raised $111.0M for the quarter finished March 31, 2017, contrast to the corresponding period last year. The cost of funds raised to 0.570 percent in the quarter finished March 31, 2017 from 0.540 percent for the same period of 2016.

For the quarter finished March 31, the provision for loan losses was $1.20M in both 2017 and 2016.

For the quarter finished March 31, 2017 and 2016, noninterest income totaled $3.80M and $3.90M, respectively. No gain or loss from the sale of investment securities obtainable-for-sale was recognized throughout the quarter finished March 31, 2017 while a gain from the sale of investment securities of $242.00 thousand was recognized during the corresponding period a year ago.

For the first quarter of 2017, noninterest cost raised to $12.40M from $11.60M for the similar period in 2016, a boost of $0.80M or 6.40 percent. The buildout of our development plan led to boosts in salaries and worker benefit cost when comparing the two periods. In Addition To, the year ago period included a one-time $208.00 thousand credit to pay and worker benefits for mortgage servicing rights retained by the bank that were not previously recorded.

BALANCE SHEET REVIEW:

At March 31, 2017, total assets, loans and deposits were $2.00B, $1.60B and $1.60B, respectively. Loans, net grew $26.90M or 7.10 percent annualized in the first quarter of 2017. Loans, net grew $150.20M or 10.70 percent from March 31, 2016 to March 31, 2017. Deposits grew $26.80M or 6.80 percent annualized in the first quarter of 2017. Total deposits grew $140.10 M or 9.50 percent from March 31, 2016 to March 31, 2017. Noninterest-bearing deposits raised $4.90M or 5.60 percent annualized while interest-bearing deposits raised $21.90M or 7.20 percent annualized in the first quarter of 2017. Total investments were $274.80M at March 31, 2017, numbering $264.60M securities classified as accessible-for-sale and $10.20M classified as held-to-maturity.

Stockholders’ equity equaled $259.30M or $35.070 per share at March 31, 2017, and $256.60M or $34.710 per share at December 31, 2016. Tangible investors’ equity enhanced to $25.970 per share at March 31, 2017, from $25.570 per share at December 31, 2016. Dividends declared for the quarter ended March 31, 2017 amounted to $0.310 per share representing a dividend payout ratio of 47.70 percent.

ASSET QUALITY REVIEW:

Nonperforming assets were $12.10M or 0.780 percent of loans, net and foreclosed assets at March 31, 2017, contrast to $14.20M or 0.930 percent of loans, net and foreclosed assets at December 31, 2016. The allowance for loan losses equaled $17.00M or 1.090 percent of loans, net at March 31, 2017 contrast to $16.00M or 1.040 percent of loans, net, at December 31, 2016. Loans charged-off, net of recoveries, for the quarter finished March 31, 2017, equaled $192.00 thousand or 0.050 percent of average loans, contrast to $17.00 thousand or 0.010 percent of average loans for the comparable period a year ago.

Analyst recommendation for this stock stands at N/A.