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1. Company Snapshot

1.a. Company Description

Peoples Financial Services Corp.operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services.The company accepts money market, NOW, savings, individual retirement, demand deposit, and certificates of deposit accounts.


It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights.In addition, the company offers investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit sharing plans.Further, it provides investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities and brokerage, and investor services.


Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services.It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers through 28 full-service community banking offices located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, and Wyoming Counties of Pennsylvania; Middlesex County of New Jersey; and Broome County of New York.The company was founded in 1905 and is headquartered in Scranton, Pennsylvania.

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1.b. Last Insights on PFIS

The recent 3-month performance of Peoples Financial Services Corp. was negatively impacted by a lack of significant earnings growth, despite a 4.5% increase in net interest income. The company's net interest margin remained relatively stable, but was offset by a 12.6% increase in non-interest expenses. Additionally, the absence of any notable acquisitions or new product launches contributed to the lack of momentum in the company's financial performance.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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PEOPLES FINANCIAL SERVICES CORP. Declares Fourth Quarter 2025 Dividend

Oct -31

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PEOPLES FINANCIAL SERVICES CORP. Reports Unaudited Third Quarter and Year to Date 2025 Earnings

Oct -30

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Peoples Financial (PFIS) Q2 EPS Up 265%

Aug -01

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Peoples Financial Services Corp. Reports Unaudited Second Quarter and Year to Date 2025 Earnings

Jul -31

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PEOPLES FINANCIAL SERVICES CORP. Declares Third Quarter 2025 Dividend

Jul -25

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New Strong Buy Stocks for June 13th

Jun -13

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Peoples Financial Services Corp. Announces Completion of Private Placement of $85.0 Million of Subordinated Notes

Jun -06

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Peoples Financial: 5% Dividend Yield And Positive Earnings Outlook Thanks To Last Year's Acquisition

Jun -01

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Banking and Related Activities

Expected Growth: 4.77%

Peoples Financial Services Corp.'s 4.77% growth in Banking and Related Activities is driven by increasing loan demand, expansion of digital banking channels, and strategic acquisitions. Additionally, a favorable interest rate environment and cost savings initiatives have contributed to the growth. Furthermore, the company's focus on community banking and customer relationships has led to increased deposits and fee income.

7. Detailed Products

Personal Banking

Peoples Financial Services Corp. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, cash management, and merchant services.

Mortgage Lending

Peoples Financial Services Corp. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate mortgages, refinancing, and construction loans.

Investment Services

The company provides investment services, including brokerage, retirement planning, and wealth management.

Insurance Services

Peoples Financial Services Corp. offers a range of insurance products, including life insurance, disability insurance, and long-term care insurance.

Wealth Management

The company provides wealth management services, including financial planning, investment management, and estate planning.

8. Peoples Financial Services Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Peoples Financial Services Corp. is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the ease of switching to alternative financial institutions and the high level of competition in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the regulatory barriers to entry and the high capital requirements for establishing a financial institution.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition in the financial services industry and the presence of many established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.33%
Debt Cost 6.22%
Equity Weight 81.67%
Equity Cost 6.32%
WACC 6.30%
Leverage 22.45%

11. Quality Control: Peoples Financial Services Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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First Community

A-Score: 6.8/10

Value: 6.6

Growth: 5.6

Quality: 6.6

Yield: 5.0

Momentum: 8.5

Volatility: 8.3

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Home Federal Bancorp of Louisiana

A-Score: 6.7/10

Value: 7.4

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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First Capital

A-Score: 6.6/10

Value: 8.0

Growth: 5.7

Quality: 5.9

Yield: 6.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

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Peoples Financial Services

A-Score: 6.0/10

Value: 6.2

Growth: 4.3

Quality: 5.8

Yield: 8.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Seacoast Banking

A-Score: 5.6/10

Value: 4.3

Growth: 5.4

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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First of Long Island

A-Score: 5.3/10

Value: 5.0

Growth: 3.1

Quality: 4.1

Yield: 8.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.73$

Current Price

49.73$

Potential

-0.00%

Expected Cash-Flows