Peoples Financial Services Corp 8-K, filed Oct 14, 2021
Peoples Financial Services Corp. (PFIS)
About this 8-K
Peoples Financial Services Corp filed this 8-K on October 14, 2021, reporting on events of October 8, 2021.
Items reported
- Item 8.01: Other events
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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| Item 8.01 | Other Events. |
Peoples Financial Services Corp’s banking subsidiary, Peoples Security Bank and Trust Company (the “Bank”), on October 8, 2021, agreed to sell 44,982 shares of the Class B common stock of Visa Inc. for a purchase price of $12.2 million. The shares had no carrying value on the Bank’s balance sheet and, as the Bank had no historical cost basis in the shares, the entire purchase price will be realized as a pretax gain. The transaction will have a positive impact on the Bank’s regulatory capital, which will be used for capital management and to support the Company’s organic growth.
The Bank received 73,333 Class B shares of Visa Inc. as part of its membership interest in March 2008, and 28,351 shares were redeemed in connection with Visa’s initial public offering in 2008. The sale of the remaining 44,982 Class B shares is expected to settle in October, 2021 and be reported in our 2021 fourth-quarter and year-end results as an after-tax gain of $9.6 million. The gain on the sale of the Class B shares is not indicative of the expected results of consolidated operations for those periods.
We make statements in this report regarding our expectations for future financial or operating results 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.” A number of important factors, including those described in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other reports and documents filed with the Securities and Exchange Commission from time to time, could cause actual results to differ materially from those currently anticipated in any forward-looking statement.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PEOPLES FINANCIAL SERVICES CORP. | ||
| By: | /s/ Craig W. Best | |
| Craig W. Best | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
Date: October 13, 2021