Attached files
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|---|---|
| 8-K - FORM 8-K - PEOPLES FINANCIAL CORP /MS/ | d83776e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com
For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com
PEOPLES FINANCIAL CORPORATION SECOND QUARTER INCOME
INCREASES 85% OVER FIRST QUARTER
INCREASES 85% OVER FIRST QUARTER
Loan loss continues to decline from year-ago levels
BILOXI, MS (July 27, 2011)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of
The Peoples Bank, recorded second quarter earnings of $809,000, an increase of 85% over the first
quarter of 2011, announced Chevis C. Swetman, Chairman and Chief Executive Officer of the holding
company and the bank.
Earnings per weighted average share for second quarter of 2011 rose to $.16, compared to $.09 per
weighted average share in the first quarter of 2011. Earnings per share figures are based on
weighted average shares outstanding of 5,136,918 for the three months ended March 31, 2011 and June
30, 2011.
The provision for loan losses in the latest quarter declined to $546,000 compared to $641,000 in
the first quarter of this year and $1,585,000 in the second quarter of 2010. The latest provision
was the lowest since first quarter of 2009, when the capital markets bottomed.
“We are not yet seeing much of an increase in loan demand in our region, but the overall economy
here is becoming more stable though still fragile,” said Swetman. “Our loan loss provisions have
declined measurably, as we continue to cleanse our balance sheet of problem credits,” he added.
Loans past due 90 days declined 84% from the same quarter last year, improving from $7,595,000 to
$1,195,000 in second quarter, 2011.
The bank’s primary capital ratio increased to 13.94% at the end of the second quarter of 2011,
compared to 13.07% at the end the same period in 2010. That is the highest level of capital since
2004.
Founded in 1896, with $821 million in assets as of June 30, 2011, 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 expectation expressed in such forward-looking statements.
PEOPLES FINANCIAL CORPORATION
(In thousands, except per share figures) (Unaudited)
(In thousands, except per share figures) (Unaudited)
EARNINGS SUMMARY
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net interest income |
$ | 5,687 | $ | 6,556 | $ | 11,549 | $ | 13,548 | ||||||||
Provision for loan losses |
546 | 1,585 | 1,187 | 2,735 | ||||||||||||
Non-interest income |
2,451 | 3,684 | 4,474 | 5,818 | ||||||||||||
Non-interest expense |
6,975 | 6,687 | 13,931 | 13,616 | ||||||||||||
Income taxes |
(192 | ) | 522 | (342 | ) | 697 | ||||||||||
Net income |
809 | 1,446 | 1,247 | 2,318 | ||||||||||||
Earnings per share |
.16 | .28 | .24 | .45 | ||||||||||||
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Allowance for loan losses, beginning of period |
$ | 7,105 | $ | 8,279 | $ | 6,650 | $ | 7,828 | ||||||||
Recoveries |
79 | 18 | 193 | 74 | ||||||||||||
Charge-offs |
(1,017 | ) | (714 | ) | (1,317 | ) | (1,469 | ) | ||||||||
Provision for loan losses |
546 | 1,585 | 1,187 | 2,735 | ||||||||||||
Allowance for loan losses, end of period |
$ | 6,713 | $ | 9,168 | $ | 6,713 | $ | 9,168 | ||||||||
ASSET QUALITY
| June 30, | ||||||||
| 2011 | 2010 | |||||||
Allowance for loan losses as a
percentage of loans |
1.71 | % | 2.06 | % | ||||
Loans past due 90 days and
still accruing |
1,195 | $ | 7,595 | |||||
Nonaccrual loans |
32,562 | 23,461 | ||||||
PERFORMANCE RATIOS (annualized)
| June 30, | ||||||||
| 2011 | 2010 | |||||||
Return on average assets |
.31 | % | .52 | % | ||||
Return on average equity |
2.40 | % | 4.41 | % | ||||
Net interest margin |
3.31 | % | 3.60 | % | ||||
Efficiency ratio |
94 | % | 82 | % | ||||
Primary capital |
13.94 | % | 13.07 | % | ||||
BALANCE SHEET SUMMARY
| June 30, | ||||||||
| 2011 | 2010 | |||||||
Total assets |
$ | 821,215 | $ | 888,499 | ||||
Securities |
327,442 | 351,289 | ||||||
Loans |
393,390 | 445,736 | ||||||
Other real estate |
8,163 | 1,397 | ||||||
Total deposits |
498,419 | 519,555 | ||||||
Total federal funds purchased |
169,044 | 170,872 | ||||||
Shareholders’ equity |
106,247 | 106,822 | ||||||
Book value per share |
20.68 | 20.74 | ||||||
Weighted average shares |
5,136,918 | 5,151,697 | ||||||