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<SEC-DOCUMENT>0001056943-11-000005.txt : 20110127
<SEC-HEADER>0001056943-11-000005.hdr.sgml : 20110127
<ACCEPTANCE-DATETIME>20110127145018
ACCESSION NUMBER:		0001056943-11-000005
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20101231
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110127
DATE AS OF CHANGE:		20110127

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEOPLES FINANCIAL SERVICES CORP.
		CENTRAL INDEX KEY:			0001056943
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				232391852
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23863
		FILM NUMBER:		11551875

	BUSINESS ADDRESS:	
		STREET 1:		82 FRANKLIN AVENUE
		CITY:			HALLSTEAD
		STATE:			PA
		ZIP:			18822
		BUSINESS PHONE:		5708792175

	MAIL ADDRESS:	
		STREET 1:		82 FRANKLIN AVENUE
		CITY:			HALLSTEAD
		STATE:			PA
		ZIP:			18822

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PEOPLES FINANCIAL SERVICES CORP/
		DATE OF NAME CHANGE:	19980303
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>PFSC FORM 8K 4TH QUARTER 2010 EARNINGS
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt; FONT-WEIGHT: bold">SECURITIES AND EXCHANGE COMMISSION</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Washington, D.C. 20549</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CURRENT REPORT</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">OF THE SECURITIES EXCHANGE ACT OF 1934</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">99: Press Release of Peoples Financial Services Corp., dated January 27,&#160;&#160;2011, regarding Fourth Quarter 2010 Earnings</font></div>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Press Release of Peoples Financial Services Corp., dated January 27,&#160;&#160;2011, regarding&#160;Fourth Quarter 2010 Earnings&#160;</font></div>
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<div>&#160;Dated: January 27, 2011</div>
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<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99.htm
<DESCRIPTION>PFSC 4TH QUARTER 2010 EARNINGS PRESS RELEASE
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<div style="TEXT-ALIGN: left; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PEOPLES FINANCIAL SERVICES CORPORATION Reports a 28.4% Increase in 2010 Earnings</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Hallstead, PA, January 27</font> &#8211;Peoples Financial Services Corporation (OTCBB:PFIS) today reported record earnings in 2010 of $6.5 million or $2.07 per share, compared to $5.0 million or $1.61 per share in 2009. Fourth quarter earnings totaled $2.0 million or $0.65 per share in 2010, an increase of 37.2% compared to $1.5 million or $0.47 per share in the fourth quarter of 2009. </font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Return on average stockholders&#8217; equity and return on average assets were 13.87% and 1.18% for the year ended December 31, 2010, and 12.62% and 1.07% for the same period of 2009. For the fourth quarter, return on average stockholders&#8217; equity and return on average assets were 15.77% and 1.44% in 2010 and 15.11% and 1.27% in 2009. </font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;Solid net interest income growth was the primary factor allowing the bank to achieve record earnings in 2010</font>,&#8221; stated Alan W. Dakey, President and Chief Executive Officer. &#8220;The growth of average earning assets over that of our average interest-bearing funds during 2010 more than offset the reduction in our net interest margin and resulted in a substantial improvement in the level of net interest income reported. In addition, maintaining a favorable operating efficiency ratio continued to assist us in improving our Company&#8217;s profitability.&#8221;</font></div>

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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt" face="Symbol, serif">&#183;</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Net income increased 28.4% in 2010.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">INCOME STATEMENT REVIEW</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For the year ended December 31, 2010, tax-equivalent net interest income increased $2.1 million or 11.3% to $20.7 million compared to $18.6 million for the same period of 2009. Growth in average earning assets over average interest-bearing liabilities, more than offset a 17 basis point reduction in the net interest spread. Average earning assets grew $77.7 million to $517.1 million in 2010, from $439.4 million in 2009. Average loans increased $42.2 million, while average investments and federal funds sold grew $35.5 million. The strong demand for commercial loans was the primary factor influencing the improvement in average loan growth. Total interest-bearing liabilities averaged $424.8 million in 2010, an increase of $60.2 million from $364.6 million in 2009. A 46 basis point reduction in the cost of funds from 1.99% in 2009 to 1.53%
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For the fourth quarter of 2010, tax-equivalent net interest income improved $0.8 million or 16.1% to $5.5 million compared to $4.7 million in 2009. Average assets totaled $531.2 million and $434.4 million in the fourth quarter of 2010 and 2009, respectively. Average interest-bearing liabilities were $429.6 million for the three months ended December 31, 2010, compared to $360.3 million for the comparable period of 2009. The tax-equivalent net interest margin declined from 4.31% for the fourth quarter of 2009 to 4.10% for the comparable quarter of 2010.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The provision for loan losses totaled $2.2 million in 2010 compared to $1.7 million in 2009.&#160;&#160;For the fourth quarter of 2010 and 2009, the provision for loan losses amounted to $180 thousand and $365 thousand, respectively. </font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Noninterest income increased $1.2 million or 39.2% to $4.3 million in 2010 from $3.1 million in 2009. For the fourth quarter, noninterest income totaled $952 thousand in 2010 and $1,240 thousand in 2009.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;&#160;&#160;&#160;&#160; <font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font>&#160;&#160; Noninterest expense increased $855 thousand or 6.9% to $13,245 thousand in 2010 from $12,390 thousand in 2009. The recognition of penalty fees on the extinguishment of certain Federal Home Loan Bank borrowing arrangements accounted for $718 thousand of the total increase in noninterest expense in 2010. For the fourth quarter of 2010, noninterest expense decreased $114 thousand or 3.4%.</div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Total assets increased $42.1 million to $558.6 million at December 31, 2010, from $516.5 million at December 31, 2009. The balance sheet growth was funded primarily by an increase in total deposits of $28.7 million or 7.0% to $438.7 million at the end of 2010, from $410.0 million one year ago. Loans, net of unearned income, grew $57.8 million or 17.4% to $390.8 million at December 31, 2010, from $333.0 million at December 31, 2009. Available-for-sale investment securities decreased $8.8 million to $121.7 million from $130.5 million comparing December 31, 2010 and 2009. </font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;Stockholders' equity equaled $50.5 million or $16.07 per share at December 31, 2010, and $45.0 million or $14.34 per share at December 31, 2009. Our Leverage ratio was 8.34% at the end of 2010, compared to 8.68% at December 31, 2009. The Leverage ratio, as well as all of our capital ratios, significantly exceeded regulatory standards for well capitalized institutions. Accumulated other comprehensive loss decreased $1.4 million from year-end 2009, which resulted directly from a increase in the market value of available-for-sale investment securities. </font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Nonperforming assets equaled $10.3 million or 2.61% of loans, net of unearned income and foreclosed assets at December 31, 2010, compared to $9.2 million or 2.72% at December 31, 2009. Loan charge-offs, net of recoveries, increased $38 thousand to $1,439 thousand in 2010, compared to $1,401 thousand in 2009. The allowance for loan losses equaled $4.1 million or 1.05% of loans, net of unearned income, at December 31, 2010, compared to $3.3 million or 1.00% one year ago. </font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Peoples Financial Services Corporation is the parent company of Peoples Neighborhood Bank, an independent community bank with eleven community offices.&#160;&#160;The community office locations are:&#160;&#160;Hallstead, Hop Bottom, Susquehanna, and Montrose, in Susquehanna County, Pennsylvania; Nicholson, Tunkhannock and Meshoppen, in Wyoming County, Pennsylvania; Glenburn in Lackawanna County, Pennsylvania; and Conklin, Deposit, and Binghamton, in Broome County, New York. In addition, customers can take advantage of PNBOnline<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">SM</font> Banking, on-line banking services, by accessing the Company's website at <font style="DISPLAY: inline; TEXT-DECORATION: underline">http://www.peoplesnatbank.com</font>. Peoples Wealth Management is a member-managed limited liabilit
y company for the purpose of providing investment advisory services to the general public. Peoples Financial Capital Corporation, a wholly-owned subsidiary, maintains and manages intangible investments and collects and distributes income from such investments. The Company's 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.</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">SOURCE: </font>Peoples Financial Services Corporation</font></div>

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">/Contact: MEDIA/INVESTORS, Scott A. Seasock, 570.879.2175 or facsimile, 570.879.4372, of <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">Peoples Financial Services Corporation</font></font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except for the historical information, this press release may contain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties in the banking industry and overall economy.&#160;&#160;Such risks and uncertainties are detailed in the Company&#8217;s Securities and Exchange Commission reports, including the Annual Report on Form 10-K and quarterly reports on Form 10-Q.</font></div>

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