Peoples Financial Corporation Earnings Total $577,000 for Third Quarter of 2011

Wed Oct 26, 2011 4:31pm EDT

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Peoples Financial Corporation Earnings Total $577,000 for Third Quarter of 2011

PR Newswire

BILOXI, Miss., Oct. 26, 2011 /PRNewswire/ -- 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 of 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







SOURCE Peoples Financial Corporation

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