Peoples Financial Corporation Revises Second Quarter Of 2020 Results

Rhea-AI Summary

Peoples Financial Corporation (PFBX) revised its second-quarter 2020 results due to new information regarding one credit, leading to an additional provision for loan losses of $1,135,000. The previously reported earnings of $858,000 turned into a net loss of $277,000 for Q2 2020. For the six months ended June 30, 2020, adjusted earnings decreased from $1,981,000 to $846,000. The adjusted loss per share for Q2 2020 remained at $0.06, matching Q2 2019. The bank, with $656 million in assets, operates 18 branches along the Mississippi Gulf Coast.

Positive

• Adjusted earnings per share for the six months ended June 30, 2020, were $0.17, up from $0.02 in 2019.
• The bank maintains a solid asset base of $656 million.

Negative

• Net loss of $277,000 reported for Q2 2020 after an additional provision for loan losses.
• Reduction of previously reported six-month earnings from $1,981,000 to $846,000.

BILOXI, Miss., Aug. 10, 2020 /PRNewswire/ -- Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced a revision to its results for the second quarter ended June 30, 2020, which were previously announced on July 29, 2020.

As a result of receiving new information on one credit, an additional provision for loan losses of $1,135,000 has been recorded for the second quarter of 2020.  This adjustment revised previously reported earnings of $858,000 for the second quarter ended June 30, 2020 to a net loss of $277,000 and previously reported earnings of $1,981,000 for the six months ended June 30, 2020 to earnings of $846,000.

The adjusted loss per weighted average common share for the second quarter of 2020 was $0.06 compared to loss per weighted average common share of $0.06 for the second quarter of 2019. Per share figures are based on weighted average common shares outstanding of 4,883,764 and 4,943,186 for the quarters ended June 30, 2020 and 2019, respectively.

Adjusted earnings per weighted average common share for the six months ended June 30, 2020 were $0.17 compared to earnings per weighted average common share of $0.02 for the six months ended June 30, 2019. Per share figures are based on weighted average common shares outstanding of 4,905,690 and 4,943,186 for the six months ended June 30, 2020 and 2019, respectively.

"Since releasing earnings on July 29, additional information was obtained relating to one credit which is on nonaccrual and in bankruptcy.  While we are disappointed by this event, it is prudent that we recognize this potential loss in a timely manner," said Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Founded in 1896, with $656 million in assets as of June 30, 2020, 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.

The Peoples Bank is a wholly owned subsidiary of Peoples Financial Corporation, listed on the OTCQX Best 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
(In thousands, except per share figures) (Unaudited) (Revised)
EARNINGS SUMMARY		Three Months Ended June 30,				Six Months Ended June 30,
		2020		2019		2020		2019
Net interest income		$               4,449		$               4,340		$               8,845		$               8,960
Provision for loan losses		1,333		56		1,397		110
Non-interest income		1,753		1,599		4,019		3,065
Non-interest expense		5,146		6,211		10,621		11,838
Net income (loss)		(277)		(328)		846		77
Earnings (loss) per share		$                (.06)		$                (.06)		$                   .17		$                   .02
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES
		Three Months Ended June 30,				Six Months Ended June 30,
		2020		2019		2020		2019
Allowance for loan losses, beginning of period		$               4,191		$               5,376		$               4,207		$               5,340
Recoveries		59		26		121		84
Charge-offs		(254)		(512)		(396)		(588)
Provision for loan losses		1,333		56		1,397		110
Allowance for loan losses, end of period		$               5,329		$               4,946		$               5,329		$               4,946
ASSET QUALITY		June 30,
		2020		2019
Allowance for loan losses as a
percentage of loans		1.83%		1.86%
Loans past due 90 days and
still accruing		$                    82		$
Nonaccrual loans		8,381		10,143
PERFORMANCE RATIOS (annualized)		June 30,
		2020		2019
Return on average assets		.27%		.02%
Return on average equity		1.74%		.17%
Net interest margin		3.07%		3.23%
Efficiency ratio		93%		99%
Primary capital		16.58%		15.66%
BALANCE SHEET SUMMARY		June 30,
		2020		2019
Total assets		$           656,450		$           622,422
Securities		252,956		277,138
Loans		290,538		266,097
Other real estate		6,100		9,012
Total deposits		535,848		493,635
Shareholders' equity		99,197		92,869
Book value per share		20.31		18.79
Weighted average shares		4,905,690		4,943,186

 

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SOURCE Peoples Financial Corporation

FAQ

What were the revised earnings for Peoples Financial Corporation for Q2 2020?

Peoples Financial Corporation reported a net loss of $277,000 for Q2 2020, a revision from previously reported earnings of $858,000.

How much was the additional provision for loan losses in Q2 2020?

An additional provision for loan losses of $1,135,000 was recorded for Q2 2020.

What is the adjusted earnings per share for PFBX for the six months ended June 30, 2020?

The adjusted earnings per share for PFBX for the six months ended June 30, 2020, were $0.17.

How many branches does The Peoples Bank operate?

The Peoples Bank operates 18 branches along the Mississippi Gulf Coast.

What was the asset size of The Peoples Bank as of June 30, 2020?

As of June 30, 2020, The Peoples Bank had assets totaling $656 million.