SCRANTON, Pa. - Peoples Financial Services Corp. (NASDAQ: PFIS), the parent company of Peoples Security Bank and Trust Company, has announced a significant increase in its quarterly cash dividend. The board of directors declared a dividend of $0.6175 per share for the fourth quarter, marking a substantial 50.6% increase from the same quarter the previous year.
The announced dividend is set to be paid on December 13, 2024, to shareholders of record as of November 29, 2024. This increase represents a notable rise in shareholder returns compared to the fourth quarter of 2023.
Peoples operates as an independent community bank, with a network of 39 full-service community banking offices across various counties in Pennsylvania, as well as in parts of New Jersey and New York. The company emphasizes a business philosophy centered on direct access to senior management and a commitment to friendly, informed, and courteous service.
The recent announcement comes after Peoples' merger with FNCB Bancorp, Inc., which was completed on July 1, 2024. While the company has expressed optimism about the merger, they caution that forward-looking statements regarding anticipated benefits, integration, and expected synergies should be viewed in the context of various risks and uncertainties that may affect actual outcomes.
Investors are advised to consider that the forward-looking statements made in the press release are based on current beliefs and expectations and are subject to change. Peoples does not undertake any obligation to update these statements in light of new information or future events.
The financial details of the dividend increase are based on a press release statement from Peoples Financial Services Corp. and represent a key development for shareholders and the company's financial trajectory following its recent expansion through the merger.
In other recent news, Peoples Financial Services Corp. declared a significant increase in its third-quarter dividend following the completion of its merger with FNCB Bancorp, Inc. The cash dividend, set at $0.6175 per share, marks a 50.6% rise from the dividend declared in the same quarter of the previous year. This development was expected as the merger was anticipated to result in an increased dividend.
The merger, finalized on July 1, was part of a prior Agreement and Plan of Merger between the two companies. Financial services firm Stephens revised its stock price target for Peoples Financial Services after the company reported mixed Q1 earnings. Despite missing earnings per share estimates due to increased expenses, the company's net interest margin saw a minimal decrease. Stephens anticipates an improvement in Peoples Financial's return on assets following the merger and has adjusted its operating EPS forecasts for 2024 and 2025 to account for the delayed merger, increased expenses, and slower loan growth. These are the latest developments for Peoples Financial Services Corp.
InvestingPro Insights
The recent 50.6% increase in Peoples Financial Services Corp.'s quarterly dividend aligns with the company's strong track record of shareholder returns. According to InvestingPro data, PFIS boasts a dividend yield of 5.24%, which is particularly attractive in the current market environment. This substantial yield is supported by the company's commitment to dividend growth, as evidenced by an InvestingPro Tip indicating that PFIS has raised its dividend for 7 consecutive years.
Moreover, the company's financial health appears robust, with a price-to-book ratio of 1.36, suggesting the stock may be reasonably valued relative to its assets. The operating income margin of 29.72% for the last twelve months as of Q2 2024 indicates strong profitability, which underpins the company's ability to sustain and grow its dividend payments.
Despite a revenue decline of 16.69% over the same period, another InvestingPro Tip reveals that analysts predict the company will remain profitable this year. This optimism is further reflected in the stock's performance, with a 27.24% price total return over the past six months.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 6 more tips available for PFIS on the platform.
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