PEOPLES FINANCIAL CORPORATION REPORTS RESULTS FOR THE SECOND QUARTER OF 2022
Peoples Financial Corporation (OTCQX: PFBX) reported a net income of $1,055,000 for Q2 2022, a rise from $789,000 in Q2 2021, resulting in earnings per share of $0.23 versus $0.16 the previous year. Year-to-date net income fell to $1,942,000, down from $5,119,000, primarily due to a prior non-recurring gain. Total shareholders' equity decreased to $55,960,000 from $94,072,000, driven by $35,099,000 in unrealized losses from the securities portfolio amid rising interest rates. Asset quality has improved, evidenced by a reduction in past due loans and other real estate.
- Q2 2022 net income rose to $1,055,000 from $789,000 in Q2 2021.
- Earnings per diluted share increased from $0.16 to $0.23 year-over-year.
- Net interest income increased by $465,000 to $5,193,000.
- Significant reduction in past due loans and other real estate.
- Year-to-date net income decreased from $5,119,000 to $1,942,000.
- Total shareholders' equity fell from $94,072,000 to $55,960,000.
- Unrealized losses of $35,099,000 were recorded on available for sale securities.
BILOXI, Miss., July 27, 2022 /PRNewswire/ -- Peoples Financial Corporation (the "Company") (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced earnings for the second quarter ending June 30, 2022.
Second Quarter Earnings
Net income for the second quarter of 2022 was
The improvement in net income for the second quarter of 2022 was primarily due to an increase in net interest income of
Net income for the first six months of 2022 decreased
The primary reason for the decrease in net income over the first six months of 2022 as compared to the prior year was a non-recurring gain during the first six months of 2021 that was caused by a reduction in the allowance for loan losses of
Other Real Estate
Other real estate decreased from
"The Company continues its implementation of its strategic plan focusing on improving asset quality with those efforts resulting in the significant reduction in past due loans, nonaccruals and other real estate." said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank.
Shareholders' Equity
Total shareholders' equity decreased from
The available for sale securities portfolio of
About the Company
Founded in 1896, with
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, 2021, 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, | |||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Net interest income | $ 5,193 | $ 4,728 | $ 9,973 | $ 9,243 | |||||||
Provision for (reduction of ) loan losses | 28 | 22 | 53 | (4,831) | |||||||
Non-interest income | 1,599 | 1,588 | 3,192 | 3,098 | |||||||
Non-interest expense | 5,709 | 5,505 | 11,170 | 12,053 | |||||||
Net income | 1,055 | 789 | 1,943 | 5,119 | |||||||
Earnings per share | $ 0.23 | $ 0.16 | $ 0.42 | $ 1.05 | |||||||
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Allowance for loan losses, beginning of period | $ 3,368 | $ 4,072 | $ 3,311 | $ 4,426 | |||||||
Recoveries | 37 | 88 | 145 | 4,672 | |||||||
Charge-offs | (54) | (54) | (130) | (139) | |||||||
Provision for (reduction of ) loan losses | 28 | 22 | 53 | (4,831) | |||||||
Allowance for loan losses, end of period | $ 3,379 | $ 4,128 | $ 3,379 | $ 4,128 | |||||||
ASSET QUALITY | June 30, | ||||||||||
2022 | 2021 | ||||||||||
Allowance for loan losses as a | |||||||||||
percentage of loans | 1.44 % | 1.55 % | |||||||||
Loans past due 90 days and | |||||||||||
still accruing | - | - | |||||||||
Nonaccrual loans | 562 | 2,455 | |||||||||
PERFORMANCE RATIOS (annualized) | June 30, | ||||||||||
2022 | 2021 | ||||||||||
Return on average assets | 0.46 % | 1.42 % | |||||||||
Return on average equity | 5.39 % | 11.44 % | |||||||||
Net interest margin | 2.42 % | 2.70 % | |||||||||
Efficiency ratio | 85 % | 70 % | |||||||||
BALANCE SHEET SUMMARY | June 30, | ||||||||||
2022 | 2021 | ||||||||||
Total assets | $ 864,236 | $ 765,630 | |||||||||
Securities | 567,358 | 372,142 | |||||||||
Loans | 234,731 | 265,805 | |||||||||
Other real estate | 417 | 2,621 | |||||||||
Total deposits | 779,470 | 648,969 | |||||||||
Shareholders' equity | 55,960 | 94,072 | |||||||||
Book value per share | 11.96 | 19.28 | |||||||||
Weighted average shares | 4,678,186 | 4,878,557 | |||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/peoples-financial-corporation-reports-results-for-the-second-quarter-of-2022-301594624.html
SOURCE Peoples Financial Corporation
FAQ
What were the Q2 2022 earnings for Peoples Financial Corporation (PFBX)?
How did the earnings per share for PFBX change in Q2 2022?
What caused the decrease in year-to-date net income for PFBX in 2022?
What impact did unrealized losses have on PFBX's shareholders' equity?