PEOPLES FINANCIAL CORPORATION REPORTS RESULTS FOR THE THIRD QUARTER OF 2024
Peoples Financial (PFBX) reported significant earnings growth for Q3 2024, with net income increasing to $15.4 million compared to $1.9 million in Q3 2023. The surge was primarily due to a $15.2 million tax benefit from reversing the company's valuation allowance on deferred tax assets. However, pre-tax income decreased by $904,000 to $1.3 million. Total interest income slightly decreased to $7.8 million, while interest expense rose by $1.1 million due to higher rates on deposits and borrowings. The Bank's gross loans increased by $9.6 million year-over-year to $239.3 million, and total shareholders' equity improved by $37.3 million to $96.4 million.
Peoples Financial (PFBX) ha registrato una significativa crescita degli utili per il terzo trimestre del 2024, con un reddito netto aumentato a 15,4 milioni di dollari rispetto a 1,9 milioni di dollari nel terzo trimestre del 2023. L'aumento è stato principalmente dovuto a un beneficio fiscale di 15,2 milioni di dollari derivante dalla revoca dell'accantonamento per la valutazione delle attività fiscali differite della società. Tuttavia, il reddito ante imposte è diminuito di 904.000 dollari, scendendo a 1,3 milioni di dollari. Gli interessi attivi totali sono leggermente diminuiti a 7,8 milioni di dollari, mentre le spese per interessi sono aumentate di 1,1 milioni di dollari a causa di tassi più elevati sui depositi e sui prestiti. I prestiti lordi della banca sono aumentati di 9,6 milioni di dollari anno su anno, raggiungendo 239,3 milioni di dollari, e il patrimonio netto totale dei soci è migliorato di 37,3 milioni di dollari, arrivando a 96,4 milioni di dollari.
Peoples Financial (PFBX) informó un crecimiento significativo de las ganancias para el tercer trimestre de 2024, con un ingreso neto que aumentó a 15,4 millones de dólares en comparación con 1,9 millones de dólares en el tercer trimestre de 2023. El aumento se debió principalmente a un beneficio fiscal de 15,2 millones de dólares por la reversión de la provisión de valoración sobre los activos fiscales diferidos de la empresa. Sin embargo, el ingreso antes de impuestos disminuyó en 904,000 dólares, quedando en 1,3 millones de dólares. Los ingresos totales por intereses disminuyeron ligeramente a 7,8 millones de dólares, mientras que los gastos por intereses aumentaron en 1,1 millones de dólares debido a tasas más altas en depósitos y préstamos. Los préstamos brutos del banco aumentaron en 9,6 millones de dólares interanuales, alcanzando 239,3 millones de dólares, y el capital total de los accionistas mejoró en 37,3 millones de dólares, llegando a 96,4 millones de dólares.
Peoples Financial (PFBX)는 2024년 3분기에 상당한 수익 성장률을 보고했으며, 순이익이 1540만 달러로 증가하여 2023년 3분기의 190만 달러와 비교되었습니다. 이 증가의 주요 원인은 회사의 이연 세금 자산에 대한 평가 적립금의 환수로 인한 1520만 달러의 세금 혜택이었습니다. 그러나 세전 소득은 904,000달러 감소하여 130만 달러에 달했습니다. 총 이자 수익은 780만 달러로 약간 감소했으며, 이자 비용은 예금과 차입금의 높은 금리로 인해 110만 달러 증가했습니다. 은행의 총 대출은 전년 대비 960만 달러 증가하여 2억 3930만 달러에 달하며, 총 주주 지분도 3730만 달러 개선되어 9640만 달러에 도달했습니다.
Peoples Financial (PFBX) a déclaré une croissance significative de ses bénéfices pour le T3 2024, avec un revenu net augmentant à 15,4 millions de dollars contre 1,9 million de dollars au T3 2023. Cette hausse est principalement due à un bénéfice fiscal de 15,2 millions de dollars résultant de l'annulation de la provision pour évaluation des actifs d'impôt différé de la société. Cependant, le revenu avant impôts a diminué de 904 000 dollars, atteignant 1,3 million de dollars. Les revenus d'intérêts totaux ont légèrement diminué à 7,8 millions de dollars, tandis que les charges d'intérêts ont augmenté de 1,1 million de dollars en raison de taux plus élevés sur les dépôts et les emprunts. Les prêts bruts de la banque ont augmenté de 9,6 millions de dollars d'une année sur l'autre, atteignant 239,3 millions de dollars, et les capitaux propres des actionnaires se sont améliorés de 37,3 millions de dollars, atteignant 96,4 millions de dollars.
Peoples Financial (PFBX) verzeichnete ein signifikantes Gewinnwachstum im 3. Quartal 2024, wobei das Nettoeinkommen auf 15,4 Millionen US-Dollar anstieg, verglichen mit 1,9 Millionen US-Dollar im 3. Quartal 2023. Der Anstieg war hauptsächlich auf einen Steuervorteil von 15,2 Millionen US-Dollar zurückzuführen, der aus der Aufhebung der Bewertungsrückstellung für die latenten Steueransprüche des Unternehmens resultierte. Das Vorsteuerergebnis sank jedoch um 904.000 US-Dollar auf 1,3 Millionen US-Dollar. Die gesamten Zinserträge sanken leicht auf 7,8 Millionen US-Dollar, während die Zinsausgaben aufgrund höherer Zinsen auf Einlagen und Darlehen um 1,1 Millionen US-Dollar stiegen. Die Bruttokredite der Bank stiegen im Jahresvergleich um 9,6 Millionen US-Dollar auf 239,3 Millionen US-Dollar, und das gesamte Eigenkapital der Aktionäre verbesserte sich um 37,3 Millionen US-Dollar auf 96,4 Millionen US-Dollar.
- Net income increased significantly to $15.4 million in Q3 2024 from $1.9 million in Q3 2023
- One-time tax benefit of $15.2 million from valuation allowance reversal
- Gross loans increased by $9.6 million year-over-year
- Shareholders' equity improved by $37.3 million to $96.4 million
- Strong leverage ratio at 12.80%
- Pre-tax income decreased by $904,000 to $1.3 million in Q3 2024
- Interest expense increased by $1.1 million due to higher rates
- Deposits decreased by $22.4 million to $666.1 million
- Efficiency ratio worsened to 72% from 66%
- Return on average assets declined to 0.82% from 1.19% (excluding tax benefit)
Third Quarter Earnings
Net income for the third quarter of 2024 increased
The increase in net income for the third quarter of 2024 was due to a discrete item of
Net income for the first nine months of 2024 increased
The increase in net income for the first nine months of 2024 was due to a discrete item of
The Company had a valuation allowance on federal and state deferred tax assets totaling
Return on average assets for the first nine months ended September 30, 2024, increased
Asset Quality
Although the economy has experienced a rising rate environment, gross loans increased
"The Bank's leadership remains committed to maintaining high-quality assets. We are closely monitoring economic conditions and staying vigilant for any potential changes in interest rates," said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank.
Shareholders' Equity
Total shareholders' equity increased by
The Bank's leverage ratio has not been impacted by these unrealized losses on available for sale securities due to an opt-out election previously made by the Bank in accordance with current regulatory capital requirements and therefore remained strong at
Liquidity
The Company maintains a well-capitalized balance sheet which includes strong capital and liquidity. The Bank provides a full range of banking, financial and trust services in our local markets. The majority of the Bank's deposits are fully FDIC insured. The Company evaluates on an ongoing and continuous basis its financial health by preparing for various moderate to severe economic scenarios.
As interest rates have increased and the cost of attracting new deposits and replacing deposit attrition has increased, the Bank experienced a decrease in deposit balances during the nine months ended September 30, 2024. This decrease was mostly caused by a decrease in the balances of several of its interest-bearing deposit accounts but not due to account closures. During the first quarter of each year the Bank experiences an influx of public fund tax deposits and these tax deposits are slowly allocated throughout the year, total deposits have decreased
About the Company
Founded in 1896, with
The Company just experienced its third best year of earnings ever and was recently recognized as part of the 2024 OTCQX Best 50, a ranking of the top-performing OTCQX companies in the prior calendar year.
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 ("SEC"), 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, 2023, 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
EARNINGS SUMMARY | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Net interest income | $ | 5,279 | $ | 6,349 | $ | 17,875 | $ | 20,601 | ||||
Provision for credit losses | (48) | 22 | (48) | (275) | ||||||||
Non-interest income | 1,750 | 1,745 | 5,254 | 5,255 | ||||||||
Non-interest expense | 5,743 | 5,834 | 16,697 | 17,102 | ||||||||
Income tax (benefit) expense | (14,097) | 328 | (13,695) | 1,586 | ||||||||
Net income | 15,431 | 1,910 | 20,175 | 7,443 | ||||||||
Earnings per share | $ | 3.31 | $ | 0.41 | $ | 4.33 | $ | 1.59 | ||||
TRANSACTIONS IN THE ALLOWANCE FOR CREDIT LOSSES ON LOANS | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Allowance for credit losses on loans, beginning of period | $ | 3,150 | $ | 3,224 | $ | 3,224 | $ | 3,338 | ||||
Recoveries | 25 | 17 | 189 | 580 | ||||||||
Charge-offs | (44) | (40) | (222) | (427) | ||||||||
Provision for (reduction of ) loan losses | (40) | — | (100) | (280) | ||||||||
Impact of adopting ASC 326 | — | — | — | (10) | ||||||||
Allowance for credit losses on loans, end of period | $ | 3,091 | $ | 3,201 | $ | 3,091 | $ | 3,201 | ||||
PERFORMANCE RATIOS | |||||
September 30, | 2024 | 2023 | |||
Return on average assets | * | 3.33 | % | 1.19 | % |
Return on average equity | * | 32.53 | % | 17.41 | % |
Net interest margin | 3.00 | % | 3.30 | % | |
Efficiency ratio | 72 | % | 66 | % | |
*-Includes discrete item of | |||||
BALANCE SHEET SUMMARY | ||||||
September 30, | 2024 | 2023 | ||||
Total assets | $ | 814,152 | $ | 810,378 | ||
Securities | 475,513 | 487,872 | ||||
Loans, net | 236,168 | 226,481 | ||||
Other real estate (ORE) | — | 952 | ||||
Total deposits | 666,086 | 730,234 | ||||
Shareholders' equity | 96,393 | 59,113 | ||||
Book value per share | 20.68 | 12.64 | ||||
Weighted average shares | 4,661,686 | 4,678,065 | ||||
PERIOD END DATA | |||||||
September 30, | 2024 | 2023 | |||||
Allowance for credit losses on loans as a | |||||||
percentage of loans | 1.29 | % | 1.39 | % | |||
Loans past due 90 days and | |||||||
still accruing | $ | — | $ | — | |||
Nonaccrual loans | $ | 427 | $ | 188 | |||
Leverage ratio | 12.80 | % | 11.99 | % | |||
View original content to download multimedia:https://www.prnewswire.com/news-releases/peoples-financial-corporation-reports-results-for-the-third-quarter-of-2024-302284709.html
SOURCE Peoples Financial Corporation
FAQ
What was PFBX's net income for Q3 2024?
What caused the significant increase in PFBX's Q3 2024 earnings?
How did PFBX's loan portfolio perform in Q3 2024?
What was PFBX's earnings per share for Q3 2024?
