PEOPLES FINANCIAL CORP 
By BILOXI, Miss., Jan. 27 /PRNewswire-FirstCall/ -- Peoples Financial Corporation (Nasdaq: PFBX), parent of The Peoples Bank, earned $3,220,000 for the year, announced Chevis C. Swetman, Chairman and Chief Executive Officer of the holding company and the bank.
Earnings for 2009 were 36% lower than earnings for 2008 due mainly to additions to the bank's loan loss reserves totaling $5,225,000.
"We are enduring short-term pain to position our bank for long-term growth as we emerge from the worst recession of our lifetime," said Swetman. "While many of our operating results are positive, we are nevertheless taking the unpleasant, difficult steps now to purge our loan portfolio of any problems," he said.
The loan loss reserve at the end of 2009 was $7,828,000, while charge-offs and recoveries for the year totaled $9,080,000 and $569,000, respectively.
Earnings per share for the year totaled $.62, compared to $.94 per average weighted share in 2008. Earnings per share figures are based on average weighted shares outstanding of 5,170,430 and 5,342,470 for the twelve months ended December 31, 2009 and 2008, respectively.
Loan balances at the end of 2009 totaled $465 million, essentially the same as the $467 million recorded at the end of 2008. "Our senior management has remained vigilant in evaluating the quality of every one of our loans. We feel comfortable with the quality of our portfolio as we enter what we hope will be a slow but steady recovery phase in our national and local economies," said Swetman.
"Our historic philosophy of maintaining a strong capital base is helping our bank survive the worst financial environment we have experienced in our lifetime. At the end of 2009, our primary capital was 12.49%, well beyond what regulators require but consistent with the policies we have historically set for ourselves," he said.
Founded in 1896, with $869 million in assets as of December 31, 2009, 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 bank also operates a mortgage loan department providing residential loans for primary, secondary and multi-family homes up to four units.
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)
Three Months Ended Year Ended
EARNINGS SUMMARY December 31, December 31,
---------------- ------------------ -------------
2009 2008 2009 2008
---- ---- ---- ----
Net interest income $7,026 $7,108 $26,888 $28,610
Provision for loan losses 1,500 252 5,225 2,347
Non-interest income 2,762 (711) 10,146 7,268
Non-interest expense 7,327 3,866 27,636 26,521
Income taxes 619 459 954 1,977
Net income 342 1,820 3,220 5,034
Earnings per share .06 .35 .62 .94
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES
---------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
------------------ -------------
2009 2008 2009 2008
---- ---- ---- ----
Allowance for loan losses
beginning of period $8,107 $10,983 $11,114 $9,378
Recoveries 234 341 569 673
Charge-offs (2,013) (462) (9,080) (1,284)
Provision for loan losses 1,500 252 5,225 2,347
----- --- ----- -----
Allowance for loan losses end of
period $7,828 $11,114 $7,828 $11,114
====== ======= ====== =======
ASSET QUALITY December 31,
------------- ------------
2009 2008
---- ----
Allowance for loan losses as a
percentage of loans 1.68% 2.38%
Loans past due 90 days and
still accruing $4,218 $2,340
Nonaccrual loans 22,006 15,553
PERFORMANCE RATIOS (annualized) December 31,
------------------------------- ------------
2009 2008
---- ----
Return on average assets .36% .55%
Return on average equity 3.06% 4.73%
Net interest margin 3.36% 3.62%
Efficiency ratio 87% 79%
Primary capital 12.49% 12.81%
BALANCE SHEET SUMMARY December 31,
--------------------- ------------
2009 2008
---- ----
Total assets $869,007 $896,408
Loans 464,976 467,377
Securities 323,689 349,816
Other real estate (ORE) 1,521 397
Total deposits 470,701 510,476
Total federal funds purchased 174,431 226,609
Shareholders' equity 103,588 107,000
Book value per share 20.11 20.27
Weighted average shares 5,170,430 5,342,470
SOURCE Peoples Financial Corporation
