The Stilwell Group Files Definitive Proxy Statement and Sends Letter to Shareholders of Peoples Financial Corporation

Rhea-AI Summary

The Stilwell Group, a major shareholder of Peoples Financial Corporation (OTCMKTS: PFBX), owning approximately 9.93% of shares, has filed a definitive proxy statement and sent a letter to shareholders ahead of the 2021 Annual Meeting. It criticizes the board's decision to increase the dividend from one cent to five cents and advocates for share repurchases while shares remain below book value. Additionally, it calls for a NO-NEPOTISM policy regarding leadership succession, highlighting concerns over the transfer of the CEO position within the same family.

Positive

• None.

Negative

• Board criticized for only a slight dividend increase; concerns over leadership succession due to nepotism; share repurchase strategy not yet implemented.

NEW YORK, March 29, 2021 /PRNewswire/ -- The Stilwell Group, one of the largest shareholders of Peoples Financial Corporation (the "Corporation") (OTCMKTS: PFBX), beneficially owning approximately 9.93% of PFBX's outstanding shares, today announced that it has delivered a letter to shareholders of the Corporation and filed a definitive proxy statement in support of its director nominee for election to the Board of Directors of the Corporation at the Corporation's 2021 Annual Meeting of Shareholders.

The full text of the letter follows:

March 29, 2021

Dear Fellow PFBX Owner,

Now that PFBX's board has increased the dividend from a parsimonious penny to a measly nickel (a 5x increase only 8 days after our last letter!), let us point out two more obvious steps for the directors to take.

#1: The Bank should be repurchasing shares so long as they remain below book value. This improves per share value as well as the share price. With capital levels so high, this step should have been taken YEARS ago.

#2: The Bank should adopt—and publicly announce—a NO-NEPOTISM policy. Passing the CEO role from father to son might be fine for a private company. For a public company like PFBX, we find it appalling.

To the Board—Adopt and announce a NO-NEPOTISM policy!

Sincerely,

Megan Parisi
MParisi@StilwellGroup.com
(212) 269-1551

Investor Contact:
The Stilwell Group
Megan Parisi
(212) 269-1551
mparisi@stilwellgroup.com

 

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SOURCE The Stilwell Group

FAQ

What is the Stilwell Group's stake in PFBX?

The Stilwell Group owns approximately 9.93% of Peoples Financial Corporation's outstanding shares.

What are the key points in the Stilwell Group's letter to PFBX shareholders?

Key points include advocating for share repurchases below book value and calling for a NO-NEPOTISM policy.

When was the Stilwell Group's letter to PFBX shareholders sent?

The letter was sent on March 29, 2021.

What dividend change did PFBX announce?

PFBX increased its dividend from one cent to five cents.

What does the Stilwell Group propose regarding the CEO position?

The Stilwell Group proposes the adoption of a NO-NEPOTISM policy for leadership succession.