Attached files
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| 8-K - FORM 8-K - PEOPLES FINANCIAL CORP /MS/ | d85300e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com
Investor Relations
228-435-8208
investorrelations@thepeoples.com
PEOPLES FINANCIAL CORPORATION EARNINGS TOTAL $577,000
FOR THIRD QUARTER OF 2011
FOR THIRD QUARTER OF 2011
BILOXI, MS (October 26, 2011)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent
of The Peoples Bank, earned $577,000 in the third quarter of 2011, a decline of 29% from the second
quarter of 2011, but a 59% increase over the same period a year ago, announced Chevis C. Swetman,
Chairman and Chief Executive Officer of the holding company and the bank.
Earnings for the nine-month period ended September 30, 2011, totaled $1,825,000, a decrease of 32%
from the same period in 2010. Net income for the year to date includes gains from sale of
securities of $794,000, gains on death benefits of life insurance policies of $470,000, losses from
the write down of foreclosed property of $666,000 and losses from the charge off of interest income
on loans placed on nonaccrual of $536,000.
Earnings per weighted average share for third quarter of 2011 were $.12, compared to $.07 in third
quarter of 2010. Earnings per share figures are based on 5,136,918 weighted average shares
outstanding as of September 30, 2011 and 5,151,697 as of September 30, 2010.
“Our bank’s bottom line is still being pressured by extremely low net interest margins and economic
uncertainty,” said Swetman. “However, our loan loss provision continues to decline and loan volume
appears to be recovering, giving us increased confidence going into the fourth quarter. For 2012
we should see positive loan growth and increased interest income,” he added.
“Loan volume has increased for the last three quarters, reaching $422,000,000 at the end of the
most recent period, a 7.3% jump from the second quarter. This is a 3.12% loan growth since the
first of the year and well exceeds our projection for 2011,” added Swetman.
Provision for loan losses in third quarter of 2011 totaled $544,000, compared to $1,045,000 for the
same period last year. For the first nine months of 2011, the provision was $1,731,000, compared to
$3,780,000 for the same period in 2010.
Primary capital increased to 14.17% in the most recent quarter, compared to 13.74% in third quarter
2010 and 13.94% in second quarter 2011.
Founded in 1896, with $817 million in assets as of September 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 FINANCIAL HIGHLIGHTS
(Unaudited) (In thousands, except weighted average shares and per share figures)
EARNINGS SUMMARY
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net interest income |
$ | 5,432 | $ | 5,730 | $ | 16,981 | $ | 19,279 | ||||||||
Provision for loan losses |
544 | 1,045 | 1,731 | 3,780 | ||||||||||||
Non-interest income |
2,960 | 2,213 | 7,434 | 8,031 | ||||||||||||
Non-interest expense |
7,419 | 6,931 | 21,349 | 20,548 | ||||||||||||
Income taxes |
(148 | ) | (397 | ) | (490 | ) | 300 | |||||||||
Net income |
577 | 364 | 1,825 | 2,682 | ||||||||||||
Earnings per share |
.12 | .07 | .36 | .52 | ||||||||||||
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Allowance for loan losses, beginning |
$ | 6,713 | $ | 9,168 | $ | 6,650 | $ | 7,828 | ||||||||
Recoveries |
14 | 91 | 207 | 165 | ||||||||||||
Charge-offs |
(246 | ) | (1,308 | ) | (1,563 | ) | (2,777 | ) | ||||||||
Provision for loan losses |
544 | 1,045 | 1,731 | 3,780 | ||||||||||||
Allowance for loan losses, ending |
$ | 7,025 | $ | 8,996 | $ | 7,025 | $ | 8,996 | ||||||||
ASSET QUALITY
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Allowance for loan losses as a
percentage of loans |
1.66 | % | 2.13 | % | ||||
Loans past due 90 days and
still accruing |
$ | 6,380 | $ | 3,159 | ||||
Nonaccrual loans |
32,244 | 22,127 | ||||||
PERFORMANCE RATIOS (annualized)
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Return on average assets |
.30 | % | .42 | % | ||||
Return on average equity |
2.33 | % | 3.38 | % | ||||
Net interest margin |
3.24 | % | 3.44 | % | ||||
Efficiency ratio |
94 | % | 87 | % | ||||
Primary capital |
14.17 | % | 13.74 | % | ||||
BALANCE SHEET SUMMARY
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Total assets |
$ | 817,267 | $ | 819,437 | ||||
Loans |
422,157 | 422,162 | ||||||
Securities |
311,736 | 313,043 | ||||||
Other real estate (ORE) |
6,963 | 2,819 | ||||||
Total deposits |
487,854 | 532,916 | ||||||
Total federal funds purchased |
172,941 | 142,381 | ||||||
Shareholders’ equity |
107,611 | 108,142 | ||||||
Book value per share |
20.95 | 20.99 | ||||||
Weighted average shares |
5,136,918 | 5,151,697 | ||||||