Exhibit 99.1

NEWS RELEASE

TO BUSINESS EDITOR:

PEOPLES FINANCIAL SERVICES CORP.

Reports Unaudited First Quarter 2024 Earnings

Scranton, PA, April 25, 2024/PRNEWSWIRE/ – Peoples Financial Services Corp. (“Peoples”) (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, today reported unaudited financial results at and for the three months ended March 31, 2024.

Peoples reported net income of $3.5 million, or $0.49 per diluted share for the three months ended March 31, 2024, a 54.3% decrease when compared to $7.6 million, or $1.05 per diluted share for the comparable period of 2023. Quarterly net income included lower net interest income of $3.7 million due primarily to higher deposit costs, higher operating expenses of $1.6 million, which includes $0.5 million of acquisition related expenses, and lower noninterest income of $0.3 million, partially offset by a lower provision for credit losses of $0.6 million.

Core net income1, a non-GAAP measure, excludes gains or losses on the sale of investment portfolio securities and acquisition related expenses from the previously announced proposed combination further discussed below of $0.5 million incurred during the three months ended March 31, 2024. Core net income1 totaled $3.9 million or $0.55 per diluted share for the three months ended March 31, 2024 compared to $7.5 million, or $1.04 per share for the comparable period of 2023.

Core pre-provision net revenue (PPNR)1, a non-GAAP measure, excludes the aforementioned pre-tax "non-core" items along with the income tax expense (benefit) and the provisions for credit losses and losses on unfunded commitments, for the three months ended March 31, 2024 was $5.6 million or $0.79 per diluted share. The PPNR for the corresponding prior year period was $10.0 million or $1.40 per diluted share.

STRATEGIC COMBINATION WITH FNCB BANCORP, INC.

On September 27, 2023, Peoples announced it had entered into a definitive agreement and plan of merger (the “merger agreement”) to strategically combine with FNCB Bancorp, Inc., the parent company of FNCB Bank (“FNCB”). The proposed strategic combination is expected to close in the second half of 2024, subject to satisfaction of customary closing conditions, including regulatory approvals. Shareholders of both companies approved the strategic combination at their respective special shareholders' meetings held on March 22, 2024. Highlights of the proposed transaction are expected to include:

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NOTABLES IN THE QUARTER

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1 See reconciliation of non-GAAP financial measures on pg.16-17

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  INCOME STATEMENT REVIEW

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First Quarter 2024 Results – Comparison to Prior-Year Quarter

Tax-equivalent net interest income, a non-GAAP measure1, for the three months ended March 31, decreased $3.7 million or 15.9% to $19.8 million in 2024 from $23.5 million in 2023. The decrease in tax-equivalent net interest income was due to a $4.7 million increase in tax-equivalent interest income that was offset by an $8.4 million increase in interest expense.

The higher interest income was the result of an increase in yield and average balance of earning assets. Average earning assets were $91.4 million higher in the three month period ended March 31, 2024 when compared to the year ago period. The tax-equivalent yield on the loan portfolio was 5.04% and 4.66% for the three months ended March 31, 2024 and 2023, respectively. This increase was due to the higher rates on adjustable and floating rate loans, and new loan originations. Loans, net, averaged $2.9 billion for three months ended March 31, 2024 and $2.8 billion for the comparable period in 2023. For the three months ended March 31, the tax-equivalent yield on total investments decreased to 1.80% in 2024 from 1.83% in 2023. Average investments totaled $533.9 million in the three months ended March 31, 2024 and $599.7 million in the three months ended March 31, 2023.

1 See reconciliation of non-GAAP financial measures on pg.16-17

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The increased interest expense in the three months ended March 31, 2024 was due primarily to higher rates on consumer, business and municipal deposits driven by the higher interest rate environment. The Company's total cost of deposits increased during the three months ended March 31, 2024 compared to the year ago period by 107 basis points to 2.34%, and the cost of interest-bearing deposits increased 122 basis points to 2.90% from 1.68% in the previous year three month period. Short-term borrowings averaged $19.7 million in the current period at an average cost of 5.35% compared to $91.5 million in short-term borrowings at an average cost of 4.81% in the prior period.

Average interest-bearing liabilities increased $206.5 million for the three months ended March 31, 2024, compared to the corresponding period last year due primarily to an increase in brokered certificate of deposits. Average noninterest-bearing deposits decreased $128.3 million or 17.2% from the prior period, due in part to a shift to interest-bearing accounts, and represented 19.2% of total average deposits in the current period as compared to 24.2% in the year ago period.

For the three months ended March 31, 2024, $0.7 million was recorded to the provision for credit losses compared to $1.3 million in the year ago period.  The current period provision was due to a lower calculated allowance for credit losses.  The lower calculated allowance was the result of a decline in model loss rates due to a reduction of balances in the existing portfolio and performance of the loan portfolio comparing favorably to peer performance along with lower qualitative adjustments related to a decline in the growth rate of loan balances.  The prior period provision was due to higher loan growth and the impact of the economic forecast on portfolio loss rates.

Noninterest income for the three months ended March 31, 2024 was $3.4 million, a $0.3 million decrease from the prior year’s quarter, primarily due to lower swap income on reduced origination volume.

Noninterest expense increased $1.6 million or 9.6% to $18.1 million for the three months ended March 31, 2024, from $16.5 million for the three months ended March 31, 2023. Acquisition related expenses, including legal and consulting and advisory fees, totaled $0.5 million. Salaries and employee benefits decreased $0.2 million or 2.7% due primarily to lower salaries, payroll taxes and benefits, partially offset by lower deferred loan origination costs. Occupancy and equipment expenses increased $0.6 million in the current period due to higher information technology (IT) expense and higher facilities costs from inflationary price pressure. Other expenses increased $0.7 million due primarily to a higher provision for unfunded loan commitments resulting from an update to underlying assumptions in the reserve calculation and FDIC assessments, partially offset by lower loan account processing fees due to lower origination volume.

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The provision for income tax expense was $0.5 million for the three months ended March 31, 2024 and $1.4 million for the three months ended March 31, 2023, a decrease of $0.9 million due to lower taxable income.

BALANCE SHEET REVIEW

At March 31, 2024, total assets, loans and deposits were $3.7 billion, $2.9 billion and $3.2 billion, respectively. During the three month period, federal funds sold were utilized to fund loan growth and seasonal deposit outflows.

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Loan growth for the three months ended March 31, 2024 was $8.5 million or 1.2%, which is consistent with the Company's current balance sheet strategy to slow loan growth. Commercial loans made up the majority of the growth with residential real estate loans also increasing.

Total investments were $477.8 million at March 31, 2024, compared to $483.9 million at December 31, 2023. At March 31, 2024, the available for sale securities totaled $394.4 million and the held to maturity securities totaled $83.3 million. The unrealized loss on the available for sale securities increased $2.4 million from $51.5 million at December 31, 2023 to $54.0 million at March 31, 2024. The unrealized losses on the held to maturity portfolio totaled $13.3 million and $13.2 million at March 31, 2024 and December 31, 2023, respectively.

Total deposits decreased $75.1 million during the three months ending March 31, 2024. Noninterest-bearing deposits decreased $21.3 million and interest-bearing deposits decreased $53.8 million during the three months ended March 31, 2024. The decrease in deposits was due to a $62.6 million decrease in municipal deposits and $24.3 million decrease in commercial deposits, partially offset by an $11.8 million increase in retail deposits. The Company had $261.0 million of longer-term callable brokered CDs at March 31, 2024 and December 31, 2023. The Company at any time has the option to call the majority of the CDs. During the three months ended March 31, 2024, deposits declined due in part to seasonal outflows of municipal deposits and commercial depositors drawing down their noninterest-bearing balances.

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The deposit base consisted of 42.8% retail accounts, 33.5% commercial accounts, 15.6% municipal relationships and 8.1% brokered deposits at March 31, 2024. At March 31, 2024, total estimated uninsured deposits, were $798.6 million, or approximately 24.9% of total deposits as compared to $883.5 million, or 26.9% of total deposits at December 31, 2023. Included in the uninsured total at March 31, 2024 is $345.8 million of municipal deposits collateralized by letters of credit issued by the FHLB and pledged investment securities, and $1.2 million of affiliate company deposits. As an additional resource to our uninsured depositors, we offer all depositors access to IntraFi's CDARS and ICS programs which allows deposit customers to obtain full FDIC deposit insurance while maintaining their relationship with our Bank.

In addition to deposit gathering and our current long term borrowings, we have additional sources of liquidity available such as cash and cash equivalents, overnight borrowings from the FHLB, the Federal Reserve’s Discount Window and Borrower-in-Custody program, correspondent bank lines of credit, brokered deposit capacity and unencumbered securities. At March 31, 2024, the Company had $110.0 million in cash and cash equivalents, a decrease of $77.4 million from December 31, 2023. At March 31, 2024, we had $1.7 billion in available additional liquidity representing 46.2% of total assets, 52.9% of total deposits and 212.3% of uninsured deposits. For additional information on our deposit portfolio and additional sources of liquidity, see the tables on page 14.

The Company maintained its well capitalized position at March 31, 2024. Stockholders' equity equaled $340.0 million or $48.18 per share at March 31, 2024, and $340.4 million or $48.35 per share at December 31, 2023. The decrease in stockholders’ equity from December 31, 2023 is primarily attributable to an increase to accumulated other comprehensive loss (“AOCI”) resulting from an increase in the unrealized loss on available for sale securities. The net after tax unrealized loss on available for sale securities included in AOCI at March 31, 2024 and December 31, 2023 was $42.2 million and $40.3 million, respectively.

Tangible stockholders' equity, a non-GAAP measure1, decreased to $39.20 per share at March 31, 2024, from $39.35 per share at December 31, 2023. Dividends declared for the three months ended March 31, 2024 amounted to $0.41 per share, representing a dividend payout ratio of 83.8% of net income.

ASSET QUALITY REVIEW

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Asset quality metrics remained strong. Nonperforming assets were $7.7 million or 0.27% of loans, net and foreclosed assets at March 31, 2024, compared to $4.9 million or 0.17% of loans, net and foreclosed assets at December 31, 2023. As a percentage of total assets, nonperforming assets totaled 0.21% at March 31, 2024 compared to 0.13% at December 31, 2023.  The increase in nonaccrual loans was primarily due to downgrading one loan totaling $2.65 million to nonaccrual. This loan is well secured and also carries a 70% government agency guaranty. At March 31, 2024, the Company had no foreclosed properties.

During the three month period ended March 31, 2024, net charge-offs were a nominal $6 thousand and our provision for credit losses totaled $0.7 million. The allowance for credit losses equaled $22.6 million or 0.79% of loans, net, at March 31, 2024 compared to $21.9 million or 0.77% of loans, net, at December 31, 2023.  Loans charged-off, net of recoveries, for the three months ended March 31, 2024 were $6 thousand, compared to $9 thousand for the comparable period last year.

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1See reconciliation of non-GAAP financial measures on pg.16-17

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About Peoples:

Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, and Wyoming Counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York through 28 offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Peoples’ 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.

In addition to evaluating its results of operations in accordance with U.S. generally accepted accounting principles (“GAAP”), Peoples routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders’ equity, core net income and pre-provision revenue ratios, among others. The reported results included in this release contain items, which Peoples considers non-core, namely acquisition related expenses and gain or loss on the sale of securities available for sale. Peoples believes the reported non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Peoples uses may differ from the non-GAAP financial measures of other financial institutions.

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Safe Harbor Forward-Looking Statements:

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We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Peoples

Financial Services Corp. and Peoples Security Bank and Trust Company (collectively, “Peoples”) that are considered

“forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such

words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential.” For these

statements, Peoples claims the protection of the statutory safe harbors for forward-looking statements.

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Peoples cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: macroeconomic trends, including interest rates and inflation; the effects of any recession in the United States; the impact on financial markets from geopolitical conflicts such as the military conflict between Russia and Ukraine and the conflict in Israel; risks associated with business combinations, including, but not limited to the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the FNCB merger agreement; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the proposed FNCB merger within the expected timeframes or at all and to successfully integrate operations of FNCB and those of Peoples, which may be more difficult, time consuming or costly than expected; the proposed FNCB merger may divert management’s attention from ongoing business operations and opportunities; effects of the announcement, pendency or completion of the proposed FNCB merger on our ability to retain customers and retain and hire key personnel and maintain relationships with our vendors, and on our operating results and business generally; changes in interest rates; economic conditions, particularly in our market area; legislative and regulatory changes and the ability to comply with the significant laws and regulations governing the banking and financial services business; monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of Treasury and the Federal Reserve System; adverse developments in the financial industry generally, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; credit risk associated with lending activities and changes in the quality and composition of our loan and investment portfolios; demand for loan and other products; deposit flows; competition; changes in the values of real estate and other collateral securing the loan portfolio, particularly in our market area; changes in relevant accounting principles and guidelines; inability of third party service providers to perform; our ability to prevent, detect and respond to cyberattacks; and other factors that may be described in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

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In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations and, specifically, the FNCB merger may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder - or take longer - to achieve than expected, if they are achieved at all. As a regulated financial institution, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Peoples following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues. Additional factors that could cause actual results to differ materially include the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Peoples and FNCB; the outcome of any legal proceedings that may be instituted against Peoples or FNCB; the possibility that the proposed strategic combination will not close when expected or at all because required regulatory approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction).

The forward-looking statements are made as of the date of this release, and, except as may be required by

applicable law or regulation, Peoples assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

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[TABULAR MATERIAL FOLLOWS]

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Summary Data

Peoples Financial Services Corp.

Five Quarter Trend (Unaudited)

(In thousands, except share and per share data)

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Peoples Financial Services Corp.

Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

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8

Peoples Financial Services Corp.

Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

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9

Peoples Financial Services Corp.

Net Interest Margin (Unaudited)

(In thousands, fully taxable equivalent basis)

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The average balances of assets and liabilities, corresponding interest income and expense and resulting average yields or rates paid are summarized as follows. Averages for earning assets include nonaccrual loans. Investment averages include available for sale securities at amortized cost. Income on investment securities and loans is adjusted to a tax-equivalent basis using the prevailing federal statutory tax rate of 21%. 

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10

Peoples Financial Services Corp.

Details of Net Interest Income and Net Interest Margin (Unaudited)

(In thousands, fully taxable equivalent basis)

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