SCRANTON, Pa., March 11, 2020 /PRNewswire/ -- Peoples Financial
Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company
for Peoples Security Bank and Trust Company, is issuing this press
release to report revised unaudited net income for the year ended
December 31, 2019. The
unaudited results of operations for the three and twelve-month
periods ended December 31, 2019 and
financial condition at December 31,
2019 previously reported in the company's January 24, 2020 press release should no longer
be relied upon.
Beginning on or about March 2,
2020, management identified issues with certain small
business credits originated by one bank employee. As a
result, the bank undertook a credit review and determined that
certain actions were required with respect to eight credits
totaling approximately $2.6 million
in outstanding principal, including certain charge offs and an
additional provision for loan losses. As a result, Peoples
will be revising its previously reported results of operations for
the three- and twelve-months ended December
31, 2019 and financial condition at December 31, 2019.
Peoples' net income for the year ended December 31, 2019, totaled $25.7 million or $3.48 per share (revised from $27.5 million or $3.72 per share). The downward revision in
net income resulted primarily from a $6.1
million provision for loan losses (revised from $3.5 million), offset by related decreases in
income tax expense and performance-based salaries and employee
benefits expense. At December 31,
2019, loans, net totaled $1,938.2
million (revised from $1,940.5
million), and the allowance for loan losses was $22.7 million (revised from $22.3 million).
The Company will provide additional details and report its
results of operations and financial condition in its annual report
on Form 10-K, which is due to be filed with the Securities and
Exchange Commission on March 16,
2020.
About Peoples Financial Services Corp.
Peoples Financial Services Corp. is the parent company of
Peoples Security Bank and Trust Company, a community bank serving
Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 28 offices. Each
office, interdependent with the community, offers a comprehensive
array of financial products and services to individuals,
businesses, not-for-profit organizations and government entities.
Peoples' business philosophy includes offering direct access
to senior management and other officers and providing friendly,
informed and courteous service, local and timely decision making,
flexible and reasonable operating procedures and consistently
applied credit policies.
Co: Peoples Financial Services Corp.
St: Pennsylvania
In: Fin
Safe Harbor Forward-Looking Statements:
We make
statements in this press release, and we may from time to time make
other statements regarding our outlook or expectations for future
financial or operating results and/or other matters regarding or
affecting Peoples Financial Services Corp., Peoples Security Bank
and Trust Company, and its subsidiaries (collectively, "Peoples")
that are considered "forward-looking statements" as defined in
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements may be identified by the use of such
words as "believe," "expect," "anticipate," "should," "planned,"
"estimated," "intend" and "potential." For these statements,
Peoples claims the protection of the statutory safe harbors for
forward-looking statements.
Peoples cautions you that a number of important factors could
cause actual results to differ materially from those currently
anticipated in any forward-looking statement. Such factors include,
but are not limited to: prevailing economic and political
conditions, particularly in our market area; credit risk associated
with our lending activities; changes in interest rates, loan
demand, real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; our ability to identify and address cyber-security risks
and other economic, competitive, governmental, regulatory and
technological factors affecting Peoples' operations, pricing,
products and services and other factors that may be described in
Peoples' Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q as filed with the Securities and Exchange Commission from time
to time.
In addition to these risks, acquisitions and business
combinations, present risks other than those presented by the
nature of the business acquired. Acquisitions and business
combinations may be substantially more expensive to complete than
originally anticipated, and the anticipated benefits may be
significantly harder-or take longer-to achieve than expected. As
regulated financial institutions, our pursuit of attractive
acquisition and business combination opportunities could be
negatively impacted by regulatory delays or other regulatory
issues. Regulatory and/or legal issues related to the
pre-acquisition operations of an acquired or combined business may
cause reputational harm to Peoples following the acquisition or
combination, and integration of the acquired or combined business
with ours may result in additional future costs arising as a result
of those issues.
The forward-looking statements are made as of the date of this
release, and, except as may be required by applicable law or
regulation, Peoples assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
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SOURCE Peoples Financial Services Corp.