Peoples Financial Corporation Announces New Stock Repurchase Program

Rhea-AI Summary

Peoples Financial Corporation (PFBX) announced a stock repurchase program to buy back up to 200,000 shares of its common stock, adding to its previous repurchases totaling 245,000 shares. As of March 31, 2021, the company had 4,878,557 shares outstanding. The shares will be repurchased at management's discretion based on market conditions. The program is designed to enhance shareholder value and follows a quarter of record earnings and an increased dividend paid on April 8, 2021. The initiative may continue for 12 months or end sooner if all shares are bought back.

Positive

• Approval for repurchase of 200,000 shares can enhance shareholder value.
• Company reported record earnings in the first quarter of 2021.
• Increased dividend payment announced on April 8, 2021.

Negative

• None.

BILOXI, Miss., April 28, 2021 /PRNewswire/ -- The board of directors of Peoples Financial Corporation (the "Company")(OTCQX Best Market: PFBX), parent of The Peoples Bank (the "Bank"), announced its approval to repurchase up to 200,000 additional shares of the Company's outstanding common stock.  In accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements, shares will be repurchased at the discretion of management either on the open market or through privately negotiated transactions, and repurchased shares will be retired. As of March 31, 2021, the Company reported common shares outstanding of 4,878,557.

The stock repurchase program goes back to May 2000 when the Company initially repurchased and retired 2.5% of the common shares then outstanding. Subsequent and current phases of the stock repurchase program are as follows:

		Number of Shares Repurchased and Retired
Date Announced
12/8/2017		110,000
9/26/2018		70,000
11/8/2019		65,000	*
		245,000
		371	*	remaining shares available to be repurchased and retired under the 2019 repurchase program
4/28/2021		200,000		shares to be repurchased and retired under the 2021 repurchase program
		200,371		Total shares available to be repurchased and retired

The timing of the planned repurchases will depend on market conditions and other requirements.  The Company currently anticipates the share repurchase program will extend over a twelve-month time frame or expire earlier if the shares are completely repurchased before the end of that period.  The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended or discontinued at any time.

"We are pleased with our continued financial improvement along with our record first quarter earnings announced earlier this month and our increased dividend payment on April 8, 2021," said Chevis C. Swetman, Chairman and CEO of the Company and the Bank. "We remain dedicated to enhancing shareholder value and returning earnings to our shareholders," he added.

Founded in 1896, our Bank had $750 million in total assets as of March 31, 2021.  The Peoples Bank operates 18 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to offering 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.

Peoples Financial Corporation's common stock is listed on the OTCQX Best Market under the symbol PFBX. Additional information is available on the Internet at the Company's website, www.thepeoples.com, and at the website of the Securities and Exchange Commission, www.sec.gov.

This news release reflects industry conditions, Company performance and financial results and contains "forward-looking statements,' which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations.  Do not place undue reliance on forward-looking statements.  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 materially from the anticipated results and expectation expressed in such forward-looking statements.

Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC's website and the Company's website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.  

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they  are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or  implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

 

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SOURCE Peoples Financial Corporation

FAQ

What is the purpose of the stock repurchase program announced by Peoples Financial Corporation (PFBX)?

The stock repurchase program aims to enhance shareholder value by buying back shares of the company's common stock.

How many shares will Peoples Financial Corporation repurchase under the new program?

Peoples Financial Corporation plans to repurchase up to 200,000 shares of its common stock.

When was the stock repurchase program announced for Peoples Financial Corporation (PFBX)?

The stock repurchase program was announced on April 28, 2021.

What are the expected effects of the stock repurchase on PFBX's stock price?

The repurchase program is expected to potentially increase the stock price by reducing the number of shares outstanding, enhancing earnings per share.

What is the timeline for the stock buyback program by Peoples Financial Corporation?

The company anticipates the share repurchase program will extend over a twelve-month period.