Peoples Financial Services Corp. (NASDAQ: PFIS), the parent company of Peoples Security Bank and Trust Company, on Friday, declared a dividend increase for its third quarter of 2024.
Shareholders can expect a cash dividend of $0.6175 per share, payable on September 13 to those on record as of August 30 -- a substantial 50.6% rise from the dividend declared in the second quarter of 2024 and the same quarter the previous year.
The dividend boost follows the completion of Peoples' merger with FNCB Bancorp, Inc., which was finalized on July 1. The merger was previously outlined in an Agreement and Plan of Merger between the two companies, suggesting that the increased dividend was an anticipated outcome of this consolidation.
Peoples operates as an independent community bank, providing a range of financial products and services through 44 full-service community banking offices. These are spread across several counties in Pennsylvania, New Jersey, and New York.
Peoples Financial Services saw a revision in its stock price target by Stephens, a financial services firm, following mixed Q1 earnings. The company's Q1 earnings report indicated a miss on earnings per share due to increased expenses. However, the net interest margin saw only a slight decrease. Stephens predicts an improvement in Peoples Financial's return on assets after the completion of the merger with FNCB, expected on July 1. The firm also revised its operating EPS forecasts for 2024 and 2025, accounting for the delayed merger, increased expenses, and slower loan growth.
InvestingPro Insights
Peoples Financial Services Corp. (NASDAQ: PFIS) has recently made headlines with a robust dividend increase, signaling a strong post-merger financial position. Here are some InvestingPro Insights that shed further light on the company's financial health and what this means for investors.
InvestingPro Data indicates that Peoples Financial Services Corp. has a market capitalization of $355.4 million and a Price/Earnings (P/E) Ratio of 20.72. More intriguingly, when adjusted for the last twelve months as of Q1 2024, the P/E Ratio stands at a lower 14.09, suggesting a potentially more attractive valuation for investors. Additionally, the company's Price to Book ratio in the same period is 1.05, which can be appealing to value investors seeking assets that are priced close to their actual net asset value.
Among the InvestingPro Tips, it's noteworthy that PFIS has managed to maintain dividend payments for an impressive 23 consecutive years, and has also raised its dividend for 7 consecutive years. This track record of consistent and growing dividends could be particularly attractive to income-focused investors. Moreover, the company is trading near its 52-week high and has experienced strong returns over the last month and three months, with price total returns of 18.92% and 32.42% respectively. These metrics underscore a positive short-term performance trend that may catch the eye of momentum investors.
For those considering an investment in Peoples Financial Services Corp., there are additional InvestingPro Tips available that can further inform your decision. With the use of coupon code PRONEWS24, you can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to an array of valuable insights. As of now, there are 8 more InvestingPro Tips available for PFIS at https://www.investing.com/pro/PFIS, which could offer deeper analysis into the company's profitability and analyst predictions for the year ahead.
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