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

Rhea-AI Summary

The Stilwell Group, a significant shareholder of Peoples Financial Corporation (OTCMKTS: PFBX), owning approximately 9.93% of outstanding shares, has expressed concerns regarding the company's financial practices. In a recent letter to shareholders, they questioned the legitimacy of an $18 million liability on PFBX's balance sheet, suggesting it resulted from the Directors' Deferred Income Plan, which pays insiders 10% annually on deferred fees. The Stilwell Group demands transparency on these payments and accountability from insiders to uphold their fiduciary duty to shareholders.

Positive

• None.

Negative

• Concerns raised about $18 million liability on PFBX's balance sheet.
• Insiders potentially earning 10% annually on deferred fees raises ethical questions.

NEW YORK, May 5, 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 second supplement to its Definitive Proxy Statement.

The full text of the letter follows:

May 5, 2021

Dear Fellow PFBX Owner,

Just how did "certain key executives and directors" acquire the grotesque sum of $18 million that sits on PFBX's balance sheet as a liability?  Since the Company disclosures are so spotty, it would be great for the insiders to spell out just what they've been doing.  Nevertheless, working with the little information made public, here's our educated guess as to how the insiders got that $18 million from our Company.

Page 22 of the Company's proxy states that the Directors' Deferred Income Plan pays the insiders 10% ANNUALLY on fees they defer.  If that's how they all got so much of the Company's money, they should hang their heads in shame and not show their faces in Biloxi ever again.  To extract 10% annually, when you are supposedly a fiduciary, is repugnant.

So, directors and insiders, why don't you spell out the precise amounts of who's getting what, how those payments have been justified, and let us know how you all square that with the sacred trust that directors have over shareholder interests?  And are you really paying yourselves 10%, year after year?

I suspect that everyone in Biloxi would be interested to hear what you have to say.

Sincerely,

Megan Parisi
MParisi@StilwellGroup.com
(917) 881-8076

You can vote by telephone, online or by signing and dating the enclosed GREEN proxy card and returning it in the postage-paid envelope.

If you have any questions, require assistance in voting your GREEN proxy card, 
or need additional copies of our proxy materials, please contact us or Okapi Partners at the phone numbers or email listed below.

Okapi Partners LLC
1212 Avenue of the Americas, 24^th Floor 
New York, New York 10036
+ 1 (212) 297-0720 (Main) 
+ 1 (855) 305-0856 (Toll-Free) 
Email: info@okapipartners.com

Investor Contact:

The Stilwell Group
Megan Parisi
(917) 881-8076
mparisi@stilwellgroup.com

View original content:http://www.prnewswire.com/news-releases/the-stilwell-group-sends-letter-to-shareholders-of-peoples-financial-corporation-and-supplements-its-definitive-proxy-statement-301284301.html

SOURCE The Stilwell Group

FAQ

What is the primary concern raised by the Stilwell Group regarding Peoples Financial Corporation (PFBX)?

The Stilwell Group is concerned about an $18 million liability on PFBX's balance sheet and the ethics of insiders earning 10% annually on deferred fees.

What percentage of shares does the Stilwell Group own in Peoples Financial Corporation (PFBX)?

The Stilwell Group owns approximately 9.93% of outstanding shares in Peoples Financial Corporation (PFBX).

When did the Stilwell Group send the letter to shareholders of Peoples Financial Corporation (PFBX)?

The letter was sent on May 5, 2021.

What action did the Stilwell Group take alongside their letter to shareholders of PFBX?

They filed a second supplement to their Definitive Proxy Statement.