Peoples Financial Q4 net income falls on securities loss

Overview

• Bank holding company's Q4 net income fell due to strategic securities portfolio repositioning

• Adjusted EPS and net income for Q4 missed analyst expectations

• Net interest margin improved to 3.6% for Q4 2025

Outlook

• Peoples expects to recover after-tax loss from securities sale within 10 months

• Company focuses on disciplined growth and operating efficiency

• Peoples completed strategic repositioning of investment securities portfolio

Result Drivers

• SECURITIES REPOSITIONING - Co incurred a $2.2 mln pre-tax loss from selling lower-yielding treasury bonds as part of a strategic portfolio repositioning

• NET INTEREST INCOME - Higher levels of interest-earning assets and improved net interest margin drove an increase in net interest income

• FNCB MERGER IMPACT - Merger with FNCB Bancorp contributed to increased transaction volumes and accretion, supporting core earnings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Peoples Financial Services Corp is $50.00, about 4% below its January 30 closing price of $52.10

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn8sjTZ1a

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