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8-K - FORM 8-K - PEOPLES FINANCIAL CORP /MS/d476413d8k.htm

Exhibit 99.1

Exhibit 99.1: Peoples Financial Corporation Press Release Dated January 31, 2013

FOR IMMEDIATE RELEASE

For more information, contact:

Investor Relations

228-435-8208

investorrelations@thepeoples.com

PEOPLES FINANCIAL CORPORATION 2012 EARNINGS

MORE THAN DOUBLE OVER 2011

BILOXI, MS (January 31, 2013)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported net income of $2,641,000 for the year ended December 31, 2012, a 120% increase over annual earnings in 2011, announced Chevis C. Swetman, Chairman and Chief Executive Officer of the holding company and the bank.

Fourth quarter 2012 earnings totaled $825,000, compared to a loss of ($622,000) in the fourth quarter of 2011.

Earnings per weighted average share for 2012 totaled $.51 compared to $.23 per weighted average share in 2011. Earnings per share figures are based on weighted average shares outstanding of 5,136,918 as of December 31, 2012 and 2011.

“We are pleased—although certainly not thrilled—with our financial results for the year ,” said Swetman. “Despite a spike in our loan loss provision during the fourth quarter, we were still able to increase earnings over the same period the year before and more than double net income for the entire year, “ he added.

The provision for loan losses in the fourth quarter of 2012 totaled $1,893,000, due primarily to potential losses on two loan relationships identified during the fourth quarter. Provisions for the first three quarters of 2012 averaged $790,000 per quarter. Allowance for loan losses as a percentage of loans rose to 2.05% at the end of 2012, compared to 1.88% at the end of 2011.

Loans outstanding at the end of of 2012 were flat compared to 2011, reflecting some payoffs during fourth quarter 2012. “We expect loan volume to resume a steady modest growth in 2013,” said Swetman.

The bank’s primary capital ratio rose to 14.71% at the end of 2012, compared to 14.65% at the end of 2011. That remains the highest level of primary capital since 2004.

Founded in 1896, with $805 million in assets as of December 31, 2012, 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

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

EARNINGS SUMMARY

 

      Three Months Ended December 31,     Year Ended December 31,  
     2012      2011     2012     2011  

Net interest income

   $ 5,653       $ 4,873      $ 22,561      $ 21,854   

Provision for loan losses

     1,893         1,204        4,264        2,935   

Non-interest income

     2,209         2,426        9,529        9,860   

Non-interest expense

     5,139         7,431        25,277        28,780   

Income taxes

     5         (714     (92     (1,204

Net income

     825         (622     2,641        1,203   

Earnings per share

     .16         (.13     .51        .23   

TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES

 

      Three Months Ended December 31,     Year Ended December 31,  
     2012     2011     2012     2011  

Allowance for loan losses, beginning of period

   $ 7,088      $ 7,024      $ 8,136      $ 6,650   

Recoveries

     30        17        133        223   

Charge-offs

     (154     (109     (3,676     (1,672

Provision for loan losses

     1,893        1,204        4,264        2,935   
  

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan losses, end of period

   $ 8,857      $ 8,136      $ 8,857      $ 8,136   
  

 

 

   

 

 

   

 

 

   

 

 

 

ASSET QUALITY

 

     December 31,  
     2012     2011  

Allowance for loan losses as a percentage of loans

     2.05     1.88

Loans past due 90 days and still accruing

   $ 1,445      $ 1,832   

Nonaccrual loans

     53,891        57,593   

PERFORMANCE RATIOS

 

     December 31,  
     2012     2011  

Return on average assets

     .32     .15

Return on average equity

     2.40     1.14

Net interest margin

     3.11     3.13

Efficiency ratio

     91     100

Primary capital

     14.71     14.65

BALANCE SHEET SUMMARY

 

     December 31,  
     2012      2011  

Total assets

   $ 804,912       $ 804,152   

Loans

     431,083         432,407   

Securities

     271,831         286,856   

Other real estate (ORE)

     7,008         6,153   

Total deposits

     475,719         468,439   

Total federal funds purchased

     194,234         157,601   

Shareholders’ equity

     110,754         109,452   

Book value per share

     21.56         21.31   

Weighted average shares

     5,136,918         5,136,918