NEWS RELEASE

TO BUSINESS EDITOR

PEOPLES FINANCIAL SERVICES CORP. Dcclares Cash Dividend

Scranton, PA/ January 31 - The Boarcl of Directors of Peoples Financial Services Corp. (OTCQB: PFIS) toclay declarecl a quarterly cliviclencl of $0.31 per share. The cliviclencl, which is a
35% increase over the comparable quarter last year, is payable Mareh 14, 2014, to shareholclcrs or record February 28, 2014
Peoples Financial Services Corp. (the "Company") is the parent company of Peoples Security Bank ancl Trust Company (the "Bank"), an inclepenclent community bank serving Lackawanna, Luzerne, Monroe, Susquehanna, Wayne and Wyoming Counties in Pennsylvania ancl Broome County in New York through 26 offices. Each office, interdependent with thc community, offers a comprehensive array of financial proclucts ancl services to inclividual s, businesses, not-for­ profit organizations ancl govemment entities. The Company's business philosophy includes offering clirect access to senior management ancl other officers ancl provicling frienclly, informecl and courteous service, local ancl timely clecision making, flexible ancl reasonable operati ng proceclures and consistently appliecl creclit policies.
SOURCE: Peoples Financial Services Corp.
/Contact: M EDIA/INVESTORS, Marie L. Luciani, lnvestor Relations Officer, 570.346.7741 or m.Juciani @pe nnsecurity.com

Co: Peoples Financial Services Corp. St: Pennsylvania

In: Fin

Snfe lln rllor Fonmni-Looking Slnlemcnls:

Ve mnke slnlemenls in this prcss relensc, n nd we mny from time to ti me mnke othcr statcmcnts, rcgarding our outlook or cx pcctntions for future lìnnncinl or opernting results nncVor other mntters regnrding or affccti ng P.:oples l'inancinl Scn•iccs Corp., Pcoples Security 13nnk ami Trust Company, nnd its sullsidiaries (collcctivcl y, "l'coplcs") thnt are considcrcd "forwa rd-looking stat.:ments" as dclìncd in thc Private Secu ritics Litigation Rcfonn Acl of 1995 (thc "PSLRi''). Such fomnrd-look ing statcmcnts may be identified lly thc usc of such words ns "'beli evc:···cxpect,"" "anticipate," "shoulcl," "plmmcd," "cstimated,'' "intenti" ancl "potcntial." f'nr these statements, l'copies clnims the protcction of thc sn lì:: harbor for forwnrd-looking statcmcn ts contained inthc I'SLRA.

Peoples cantions you that a number of importnnt factors could cause act unl results to dil1èr matcrially l'rom those currently anticipntcd in any forward-looking stntcmcnt. Such factors include, but are not limited to: pn:vnili ng economie ami political conditions, particularly in our market a r.:a: crcdit risk associntcd with our lcnding activi ties; changes in intcrcst ratcs. loan demand, reni estnte vnlucs ami compctition: chnnges in nccou nting principles, policics, nml guidelines; chnngcs in any applicablc law, rule, rcgul ntion or practicc with rcspcct to tax or legni issucs: and ot hcr economie, competitive, govcrnmental, regulatory ami tcchnological factors nffccting l'coplcs' opcrntions, pricing, products ami scrviccs ami othcr factors timi mny be dcscribcd in Peoplcs' An nu nl Rcports on l'orm l 0-K ami Quartcrly Rcports on f'orm l O-Q as filcd with the Sccurities anù Exchangc Commission (''SEC") fromtime to time.

In addition to thcsc risks, acquisitions and busi ness combinations, such as l'coplcs rcccnt mcrgcr with l'cnscco l'inancinl Scrviccs Corporation. prcscnt risks other t han thosc prcscnted by the nature of the business ncquircd. Acquisitions and busi ness combinations may be substantiall y more cxpcnsivc to complete than originall y anticipatcd, n nd thc nntici pntcd bcnclìts may he signilìcnn tl y hnrder- or take longcr- to nchicvc than cx pected. As regulntcd lìnancial institutions, our 1111rsuit of attracti vc acquisition :md business com bination opportunitics could he ncgnti vcl y impacted by rcgulatory dclays or other rcgulatory issucs. Rcgulatory ami/or legai issucs related to the prc-ncq uisi tion operntions of an ncquired or

combincd business ma y ca use rcputational hnrm to Peoplcs following thc acquisition or com binat ion, and integration of thc acqui red or com hincd business wi t h ours may rcsult in ndditionnl future costs arising as n rcsult of those issucs.

Thc forwnrd-looking statemcnts nrc made as of thc date of this reicase, and, cxccpt as may be rcqui red by n pplicablc law or regulation, Peoplcs assumes no obligation to updn te thc forward-looking statcments orto u pdatc thc reasons why nct ual rcs ults could di ITer from those projcctcd in thc

forwa rd-looking st n temcnts.

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