STOCK TITAN

Peoples Financial Corporation Reports Results For The Second Quarter Of 2021

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Peoples Financial Corporation (OTCQX: PFBX) reported a net income of $789,000 for Q2 2021, compared to a net loss of $277,000 in Q2 2020. Earnings per share improved to $0.16 from a loss of $0.06. For the first half of 2021, net income rose to $5,119,000 from $846,000 in the same period last year. The positive results are attributed to a significant reduction in the provision for loan losses, which dropped to $22,000, down from $1,333,000. However, non-interest expenses increased due to a lawsuit settlement of $1,125,000.

Positive
  • Net income for Q2 2021 increased to $789,000 from a net loss of $277,000 in Q2 2020.
  • Earnings per share improved to $0.16 from a loss of $0.06 year-over-year.
  • Net income for the first six months of 2021 reached $5,119,000 compared to $846,000 in the prior year.
  • Provision for loan losses significantly decreased to $22,000 from $1,333,000.
Negative
  • Non-interest expenses increased by $1,125,000 due to a lawsuit settlement.

BILOXI, Miss., July 28, 2021 /PRNewswire/ -- Peoples Financial Corporation (the "Company")(OTCQX Best Market: PFBX), parent of The Peoples Bank, announced earnings for the second quarter ending June 30, 2021.

Net income for the second quarter of 2021 was $789,000 compared to a net loss of $277,000 for the second quarter of 2020. The earnings per weighted average common share for the second quarter of 2021 were $0.16 compared to loss per weighted average common share of $0.06 for the second quarter of 2020. Per share figures are based on weighted average common shares outstanding of 4,878,557 and 4,883,764 for the second quarters 2021 and 2020, respectively.

The improvement in net income for the second quarter of 2021 is primarily due to the decrease in the provision for loan losses of $22,000 for the second quarter of 2021 as compared with $1,333,000 for the second quarter of 2020.  In the second quarter of 2020, a specific reserve of $1,135,000 was allocated to one credit based on new information relating to this customer.

Net income for the first six months of 2021 increased $4,273,000 to $5,119,000 compared to net income of $846,000 for the first six months of 2020. The earnings per weighted average common share for the first six months of 2021 were $1.05 compared to earnings per weighted average common share of $0.17 for the first six months of 2020. Per share figures are based on weighted average common shares outstanding of 4,878,557 and 4,905,690 for the first six months of 2021 and 2020, respectively.

The Company's net income for the first six months of 2021 improved significantly due to the reduction in the allowance for loan losses of $4,831,000.  During the first quarter of 2021, the Bank subsidiary recorded a recovery of $4,510,000 on a previously charged-off loan.  Based on that computation and the on-going evaluation of the credit quality of the entire loan portfolio, Management recorded a negative provision for loan losses of $4,853,000 during the first quarter of 2021.

The Company's net income for the first six months was also impacted by an increase in non-interest expense, primarily a result of the settlement of a lawsuit of $1,125,000

"We are pleased to report the continued progress your Company has achieved in implementing its strategic plan," said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank.  He added, "For some time, Bank management has focused on improving asset quality, with those efforts resulting in the significant reduction in past due loans, nonaccruals and other real estate.  Reducing our cost of funds has been another priority and I can report that the Bank has successfully repriced a number of large depository bids which will result in a reduction in interest expense." 

Strength, security and stability have been hallmarks of the Company since its founding in 1985 and of The Peoples Bank since its founding in 1896.  With very few exceptions, we  have paid semi-annual cash dividends to our shareholders, while maintaining the strong capital position our shareholders expect.  The Company's capital continues its position as one of the highest in the Southeast United States.  The Company's primary capital ratio was 13.89% and 16.58% at June 30, 2021 and 2020, respectively. The Company's book value per share was $19.72 and $20.31 at June 30, 2021 and 2020, respectively.

Founded in 1896, with $768 million in total assets as of June 30, 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.

PEOPLES FINANCIAL CORPORATION

(In thousands, except per share figures) (Unaudited)









EARNINGS SUMMARY

Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Net interest income

$          4,728


$          4,449


$ 9,243


$ 8,845

Provision for (reduction of ) allowance for loan losses

22


1,333


(4,831)


1,397

Non-interest income

1,588


1,753


3,098


4,019

Non-interest expense

5,505


5,146


12,053


10,621

Net income (loss)

789


(277)


5,119


846

Earnings (loss) per share

.16


(.06)


1.05


.17









TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES









Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Allowance for loan losses, beginning of period

$          4,072


$          4,191


$ 4,426


$ 4,207

Recoveries

88


59


4,672


121

Charge-offs

(54)


(254)


(139)


(396)

Provision for (reduction of ) loan losses

22


1,333


(4,831)


1,397

Allowance for loan losses, end of period

$          4,128


$          5,329


$ 4,128


$ 5,329









ASSET QUALITY

June 30,






2021


2020





Allowance for loan losses as a 








   percentage of loans

1.55%


1.83%





Loans past due 90 days and 








   still accruing

$


$               82





Nonaccrual loans

2,455


8,381













PERFORMANCE RATIOS (annualized)

June 30,






2021


2020





Return on average assets

1.42%


.27%




Return on average equity

11.31%


1.74%





Net interest margin

2.70%


3.07%





Efficiency ratio

70%


93%





Primary capital

13.89%


16.58%













BALANCE SHEET SUMMARY

June 30,






2021


2020





Total assets

$      767,740


$      656,450





Securities

372,142


252,956





Loans

265,805


290,538





Other real estate

2,621


6,100





Total deposits

648,969


535,848





Shareholders' equity

96,182


99,197





Book value per share

19.72


20.31





Weighted average shares

4,878,557


4,905,690





 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/peoples-financial-corporation-reports-results-for-the-second-quarter-of-2021-301343434.html

SOURCE Peoples Financial Corporation

FAQ

What were Peoples Financial Corporation's earnings for the second quarter of 2021?

Peoples Financial Corporation reported earnings of $789,000 for Q2 2021.

How did the earnings per share change for PFBX in Q2 2021?

Earnings per share for PFBX improved to $0.16 in Q2 2021, compared to a loss of $0.06 in Q2 2020.

What is the provision for loan losses reported by PFBX for Q2 2021?

The provision for loan losses for Q2 2021 was $22,000, down from $1,333,000 in Q2 2020.

What impact did legal settlements have on PFBX's financial results?

Non-interest expenses increased by $1,125,000 in Q2 2021 due to a lawsuit settlement.

How much net income did PFBX achieve for the first half of 2021?

PFBX achieved a net income of $5,119,000 for the first six months of 2021.

PEOPLES FINCL CORP MISS

OTC:PFBX

PFBX Rankings

PFBX Latest News

PFBX Stock Data

86.47M
3.10M
39.17%
24.75%
0.04%
Banks - Regional
Financial Services
Link
United States of America
Biloxi