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Mar 31, 2020
Peoples Financial Q1 2020 Earnings Report
Peoples Financial Services Corp. reported a decrease in net income due to an increase in provision for loan losses resulting from the COVID-19 crisis, while pre-provision net interest income increased due to average earning asset growth.
Key Takeaways
Peoples Financial Services Corp. reported a net income of $5.3 million, or $0.72 per share, for the quarter ended March 31, 2020. This represents a decrease compared to the $6.4 million, or $0.87 per share, reported for the same period in 2019. The decrease was primarily due to an increase in the provision for loan losses, which was impacted by the COVID-19 crisis.
Loans, net grew by $84.9 million, or 17.6% annualized.
Deposits increased by $38.5 million, or 7.9% annualized.
Tax-equivalent net interest income increased by $1.2 million, or 6.3%.
Provision for loan losses increased by $2.4 million, or 233.3% due to COVID-19 impact.
Peoples Financial
Peoples Financial
Forward Guidance
The COVID-19 crisis is expected to continue to impact the Company’s financial results, as well as demand for its products and services during the second quarter of 2020 and potentially beyond.
Challenges Ahead
- The short and long-term implications of the COVID-19 crisis on future revenues are unknown.
- The short and long-term implications of the COVID-19 crisis on future earnings results are unknown.
- The short and long-term implications of the COVID-19 crisis on allowance for loan losses are unknown.
- The short and long-term implications of the COVID-19 crisis on capital reserves are unknown.
- The short and long-term implications of the COVID-19 crisis on liquidity are unknown.