Peoples Financial Corporation Net Income Totals $364,000 for Third Quarter, $2,682,000 for Nine Months of 2010

Oct 27, 2010, 16:31 ET from Peoples Financial Corporation

BILOXI, Miss., Oct. 27 /PRNewswire-FirstCall/ -- Third quarter net income of Peoples Financial Corporation (Nasdaq: PFBX), parent of The Peoples Bank, totaled $364,000 or $.07 per average weighted share, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Net income for the first nine months of 2010 totaled $2,682,000, a decrease of 7% from the same period in 2009.

Earnings per share for the first nine months of 2010 totaled $.52 per average weighted share, compared to $.56 per share in the same period last year.  Earnings per share figures are based on weighted average shares outstanding of 5,151,697 as of September 30, 2010 and 5,176,744 as of September 30, 2009.

"Our bank generated profit of nearly $1.5 million in the second quarter of this year, but a combination of factors caused business activity and our income to fall sharply this past quarter," said Swetman. "Net interest income for the quarter fell to the lowest levels since 2004, due to historically low interest rates and a near 10% decline in loan demand from the same period last year," he said.

"During this period of slack economy and loan demand, our Board of Directors and senior management team have concentrated our efforts to further strengthen our already solid balance sheet," said Swetman. "As of the end of the third quarter, our primary capital ratio stands at 13.74%, the highest since 2005," he added.

Founded in 1896, with $819 million in assets as of September 30, 2010, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936.

The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at www.thepeoples.com.

This news release contains forward-looking statements and reflects industry conditions, company performance and financial results. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.

PEOPLES FINANCIAL CORPORATION

(Unaudited)

(In thousands, except weighted average shares and per share figures)

EARNINGS SUMMARY

Three Months Ended September 30,

Nine Months Ended September 30,

2010

2009

2010

2009

Net interest income

$              5,730

$              7,019

$ 19,279

$ 19,862

Provision for loan losses

1,045

1,875

3,780

3,725

Non-interest income

2,213

2,595

8,031

7,384

Non-interest expense

6,931

6,670

20,548

20,308

Income taxes

(397)

95

300

335

Net income

364

974

2,682

2,878

Earnings per share

.07

.19

.52

.56

TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES

Three Months Ended September 30,

Nine Months Ended September 30,

2010

2009

2010

2009

Allowance for loan losses, beginning

$              9,168

$              9,798

$   7,828

$ 11,114

Recoveries

91

5

165

335

Charge-offs

(1,308)

(3,571)

(2,777)

(7,067)

Provision for loan losses

1,045

1,875

3,780

3,725

Allowance for loan losses, ending

$              8,996

$              8,107

$   8,996

$   8,107

ASSET QUALITY

September 30,

2010

2009

Allowance for loan losses as a

  percentage of loans

2.13%

1.74%

Loans past due 90 days and

  still accruing

$              3,159

$              1,304

Nonaccrual loans

22,127

25,257

PERFORMANCE RATIOS (annualized)

September 30,

2010

2009

Return on average assets

.42%

.43%

Return on average equity

3.38%

3.61%

Net interest margin

3.44%

3.28%

Efficiency ratio

87%

86%

Primary capital

13.74%

12.61%

BALANCE SHEET SUMMARY

September 30,

2010

2009

Total assets

$          819,437

$          888,482

Loans

422,162

466,022

Securities

313,043

347,033

Other real estate (ORE)

2,819

2,745

Total deposits

532,916

541,567

Total federal funds purchased

142,381

188,483

Shareholders' equity

108,142

105,654

Book value per share

20.99

20.51

Weighted average shares

5,151,697

5,176,744

SOURCE Peoples Financial Corporation



RELATED LINKS

http://www.thepeoples.com