SCRANTON, Pa., June 1, 2020 /PRNewswire/ -- Peoples Financial
Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company
for Peoples Security Bank and Trust Company, today announced that
it has completed a private placement of $33
million in fixed-to-floating rate subordinated notes due
2030 (the "Notes"). The Notes have been structured to qualify
as Tier 2 capital under regulatory guidelines, and the proceeds
from the sale of the Notes will be utilized for general corporate
purposes, which may include contribution to the Company's
subsidiary, Peoples Security Bank and Trust Company.
The Notes will initially bear interest at a fixed annual rate of
5.375% until June 1, 2025, payable
semi-annually in arrears. For the remainder of the term, the
Notes, which mature on June 1, 2030,
will bear interest at a floating annual rate that will reset
quarterly to equal a benchmark rate, initially three-month LIBOR,
plus 450 basis points, payable quarterly in arrears. The
Company is entitled to redeem the Notes, in whole or in part, on or
after June 1, 2025, and to redeem the
Notes at any time in whole upon certain other specified events.
The Notes have not been registered under the Securities Act of
1933, as amended, or under the securities laws of any state, and
the Notes may not be offered or sold absent registration or an
applicable exemption from registration requirements. The Notes are
not deposits and are not insured by the FDIC. This press release is
for informational purposes only and does not constitute an offer to
sell, or the solicitation of an offer to buy, any security.
About Peoples:
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 29 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.
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. and Peoples Security
Bank and Trust Company (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; the unfolding COVID-19
crisis and the governmental responses to the crisis: 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.
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.